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Business Consolidation and Other Activities
3 Months Ended
Mar. 31, 2019
Business Consolidation and Other Activities  
Business Consolidation and Other Activities

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 March 31,

($ in millions)

    

2019

    

2018

 

 

 

 

 

 

 

Beverage packaging, North and Central America

 

$

(1)

 

$

(3)

Beverage packaging, South America

 

 

(1)

 

 

 —

Beverage packaging, Europe

 

 

 1

 

 

(10)

Other

 

 

(13)

 

 

(17)

 

 

$

(14)

 

$

(30)

 

2019   

 

Beverage Packaging, North and Central America

 

Charges in the three months ended March 31, 2019, included $1 million of expense for individually insignificant activities.

 

Beverage Packaging, South America

 

Charges in the three months ended March 31,  2019, included $1 million of expense for individually insignificant activities.

 

Beverage Packaging, Europe

 

During the three months ended March 31,  2019, the company recorded credits of $2 million resulting from updated estimates for the costs of employee severance and benefits and facility shutdown costs in connection with the closures of its Recklinghausen, Germany, and San Martino, Italy, plants, which ceased production during the third quarter of 2017 and the fourth quarter of 2018, respectively.  

 

Other charges in the three months ended March 31,  2019, included $1 million of expense for individually insignificant activities.

 

Other

 

During the three months ended March 31,  2019, the company recorded the following amounts:

·

Expense of $13 million for estimated employee severance costs and professional services associated with the planned sale of the China beverage packaging business, which is expected to close during the second half of 2019.

·

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

·

Credits of $4 million for individually insignificant activities.

 

2018

 

Beverage Packaging, North and Central America

 

During the first quarter of 2018,  the company recorded income of $5 million for revised estimates of charges recorded in prior periods 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.  The Birmingham facility ceased production during the second quarter of 2018, and the Chatsworth and Longview facilities ceased production during the third quarter of 2018.  Ball sold the Chatsworth facility during the fourth quarter of 2018.

 

During the first quarter of 2018, the company recorded charges of $2 million related to the closure of its Reidsville, North Carolina, plant, which ceased production in 2017.

 

Other charges in the first quarter included $6 million for individually insignificant activities.

 

Beverage Packaging, Europe

 

During the first quarter of 2018, the company recorded charges of $4 million for employee severance and benefits and $6 million for 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.

 

Other

 

During the first quarter of 2018, the company recorded expense of $11 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

Other charges in the first quarter included $6 million for individually insignificant activities.