6. Business Consolidation and Other Activities

The following is a summary of business consolidation and other activity (charges)/income included in the unaudited condensed consolidated statements of earnings:


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2018		2017		2018		2017

Beverage packaging, North and Central America	$	(14)	$	(34)	$	(16)	$	(45)
Beverage packaging, South America		12		(4)		11		(4)
Beverage packaging, Europe		(3)		(62)		(17)		(69)
Other		(27)		(57)		(109)		(135)
	$	(32)	$	(157)	$	(131)	$	(253)

2018

Beverage Packaging, North and Central America

During the three months ended September 30, 2018, the company recorded $9 million of expense for employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs in connection with the previously announced closures of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama. Expense for the nine months ended September 30, 2018, included the same costs and was partially offset by the reversal of $5 million of expense for revised estimates of charges recorded in prior periods. The Birmingham plant ceased production during the second quarter of 2018, and the Chatsworth and Longview plants ceased production during the third quarter of 2018.

During the nine months ended September 30, 2018, the company recorded charges of $2 million related to the closure of its Reidsville, North Carolina, plant, which ceased production in 2017.

Other income and charges in the three and nine months ended September 30, 2018, included $5 million of expense and $10 million of expense, respectively, for individually insignificant activities.

Beverage Packaging, South America

During the third quarter of 2018, the company recorded a $16 million gain related to indirect tax contingencies in Brazil as these amounts have been realized. Our Brazilian subsidiaries filed lawsuits in 2014 and 2015 to challenge the Brazilian tax authorities regarding the computation of certain indirect taxes, claiming amounts were overpaid to the tax authorities as a result of a tax on a tax being charged. As these cases are resolved and the amounts claimed become realizable, the company will record gains, which may result in material reimbursements to the company and cannot be estimated at this time.

Charges in the three and nine months ended September 30, 2018, included $4 million and $5 million of expense, respectively, for individually insignificant activities.

Beverage Packaging, Europe

During the three and nine months ended September 30, 2018, the company recorded charges of $2 million and $15 million, respectively, for employee benefits, severance, facility shutdown costs and other costs in connection with the closure of its Recklinghausen, Germany, plant which ceased production during the third quarter of 2017. The majority of the closure costs are expected to be paid by the end of 2018.

Other charges in the three and nine months ended September 30, 2018, included $1 million and $2 million of expense, respectively, for individually insignificant activities.

Other

During the three months ended September 30, 2018, the company recorded the following amounts:

A settlement loss of $14 million primarily related to the purchase of non-participating group annuity contracts to settle a portion of the projected pension benefit obligations in certain Ball U.S. defined benefit pension plans which triggered settlement accounting. The settlement loss primarily represented a pro rata portion of the aggregate unamortized actuarial loss in these pension plans.

A $3 million reduction to the estimated loss recorded as of June 30, 2018, related to the sale of the U.S. steel food and steel aerosol packaging business.

Expense of $4 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

Expense of $6 million for professional services and other costs associated with the sale of the U.S. steel food and steel aerosol packaging business.

Expense of $6 million for individually insignificant activities.

During the nine months ended September 30, 2018, the company recorded the following amounts:

A $38 million loss on the sale of the U.S. steel food and steel aerosol packaging business.

Expense of $19 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

Expense of $4 million for employee severance and benefits, accelerated depreciation and inventory impairment related to manufacturing cost rationalization in the former food and aerosol packaging segment.

Expense of $10 million for professional services and other costs associated with the sale of the U.S. steel food and steel aerosol packaging business.

Expense of $24 million for individually insignificant activities.

2017

Beverage Packaging, North and Central America

During the third quarter of 2017, the company recorded charges of $29 million for employee severance and benefits and $4 million for facility shutdown costs, asset impairment, accelerated depreciation and other costs in connection with the previously announced closures of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama.

During the nine months ended September 30, 2017, the company recorded charges of $7 million for employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs related to the closure of its Reidsville, North Carolina, plant.

Other charges in the three and nine months ended September 30, 2017, included $1 million and $5 million, respectively, of individually insignificant activities.

Beverage Packaging, South America

Other charges in both the three and nine months ended September 30, 2017, included expense of $4 million for individually insignificant activities.

Beverage Packaging, Europe

During the third quarter of 2017, the company recorded charges of $55 million for employee severance and benefits and $7 million for facility shutdown costs, asset impairment, accelerated depreciation and other costs in connection with the closure of its Recklinghausen, Germany, plant which ceased production during the third quarter of 2017.

During the nine months ended September 30, 2017, the company recorded charges of $2 million for professional services and other costs associated with the 2016 Rexam acquisition.

Other charges in the nine months ended September 30, 2017, included expense of $5 million, for individually insignificant activities.

Other

During the three months ended September 30, 2017, the company recorded the following amounts:

A settlement loss of $41 million primarily related to the purchase of non-participating group annuity contracts to settle a portion of the projected pension benefit obligations in certain Ball U.S. defined benefit pension plans which triggered settlement accounting. The settlement loss primarily represented a pro rata portion of the aggregate unamortized actuarial loss in these pension plans.

Expense of $5 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

Expense of $11 million for individually insignificant activities.

During the nine months ended September 30, 2017, the company recorded the following amounts:

Expense of $34 million for the estimated amount of claims covered by the indemnification for certain tax matters provided to the buyer in the sale of the Divestment Business.

Expense of $22 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

A $14 million reduction in the gain recognized in connection with the sale of the Ball portion of the Divestment Business.

Expense of $12 million for professional services and other costs associated with the acquisition of Rexam.

Expense of $6 million for facility shutdown costs and accelerated depreciation for the closure of its food and aerosol packaging plant located in Weirton, West Virginia, which ceased production during the second quarter of 2017.

Gain of $15 million related to the sale of its food and aerosol packaging paint and general line can plant in Hubbard, Ohio during the first quarter of 2017.

Expense of $21 million for individually insignificant activities.

The following is a summary by segment of restructuring liabilities recorded in connection with business consolidation activities, which are included in other current liabilities in the company’s unaudited condensed consolidated balance sheets:


($ in millions)	Beverage Packaging, North & Central America		Beverage Packaging, Europe		Other		Total

Balance at December 31, 2017	$	26	$	41	$	1	$	68
Charges (credits) in earnings		(6)		14		2		10
Cash payments and other activity		(9)		(49)		(1)		(59)
Balance at September 30, 2018	$	11	$	6	$	2	$	19