Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets, Net

Goodwill

11. Goodwill

($ in millions)	​ Beverage Packaging, North & Central America		​ Beverage Packaging, South America		​ Beverage Packaging, Europe		​ Aerospace		Other		Total
Balance at December 31, 2017	$	1,275	$	1,299	$	1,531	$	40	$	788	$	4,933
Opening balance sheet adjustments		—		—		4		—		—		4
Business dispositions		—		—		—		—		(354)		(354)
Effects of currency exchange		—		—		(100)		—		(8)		(108)
Balance at December 31, 2018	$	1,275	$	1,299	$	1,435	$	40	$	426	$	4,475
Opening balance sheet adjustments		—		(1)		—		—		—		(1)
Business dispositions		—		—		—		—		(52)		(52)
Effects of currency exchange		—		—		(2)		—		(1)		(3)
Balance at December 31, 2019	$	1,275	$	1,298	$	1,433	$	40	$	373	$	4,419

During 2019, the company completed the sales of its China beverage packaging and Argentina steel aerosol businesses, which included $51 million and $1 million of goodwill, respectively, related to these businesses. The remaining goodwill balance associated with the beverage packaging, Asia Pacific, reporting unit (which is included in “Other” in the above table) was $27 million as of December 31, 2019.

During the third quarter of 2018, the company sold its U.S. steel food and steel aerosol business, which resulted in a $354 million decrease in goodwill.

The company’s annual goodwill impairment test completed as of October 1, 2019, indicated the fair value of the beverage packaging, AMEA (beverage AMEA), reporting unit, exceeded its carrying amounts by approximately 35 percent. Management’s cash flow projections for the beverage AMEA reporting unit included significant judgments and assumptions relating to net sales, terminal growth rates, EBITDA margin and the weighted average cost of capital. As discussed in Note 10, the company’s Saudi Arabia beverage packaging business lost a major customer in December 2019, and this loss of volumes led management to perform additional impairment tests for long-lived assets and goodwill for the beverage AMEA reporting unit. The impairment reviews led to the recognition of non-cash impairment charges totaling $64 million, which primarily related to property, plant and equipment and intangible assets. The trigger-based impairment review did not result in an impairment of goodwill for the beverage AMEA reporting unit.

As discussed in Note 3, beginning in January 2020, Ball has changed how its beverage packaging, AMEA, and beverage packaging, Asia Pacific, operating segments are being managed and reported. These operating segments had goodwill balances of $102 million and $27 million, respectively, as of December 31, 2019. These changes will result in the creation of a new beverage packaging, other, operating segment and reporting unit, and goodwill of $62 million will be allocated to this new beverage packaging, other, reporting unit. Based on the information available at this time, it is reasonably possible that the company will be required to record a non-cash impairment charge for some or all of the goodwill associated with this reporting unit in the first quarter of 2020, as the carrying amount of this reporting unit may exceed its fair value.