Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity and Accumulated Other Comprehensive Earnings

Shareholders' Equity

18. Shareholders’ Equity

At December 31, 2019, the company had 1.1 billion shares of common stock and 15 million shares of preferred stock authorized, both without par value. Preferred stock includes 550,000 authorized but unissued shares designated as Series A Junior Participating Preferred Stock.

Under its ongoing share repurchase program, the company repurchased $945 million, $711 million and $76 million of its shares, net of issuances, during the years ended December 31, 2019, 2018, and 2017, respectively. The 2019 amount included shares repurchased under accelerated share repurchase agreements with third-party financial institutions. On January 23, 2019, the Board authorized the repurchase by the company of up to a total of 50 million shares. This repurchase authorization replaced all previous authorizations.

In April 2019, the company’s Board of Directors increased the quarterly cash dividend by 50 percent to 15 cents per share. In April 2017, the company’s Board of Directors declared a two-for-one split of Ball Corporation’s common stock and increased the quarterly cash dividend by 54 percent to 10 cents on a post-split basis. The stock split was effective as of May 16, 2017.

Accumulated Other Comprehensive Earnings (Loss)

The activity related to accumulated other comprehensive earnings (loss) was as follows:

($ in millions)	Foreign Currency Translation (Net of Tax)		Pension and Other Postretirement Benefits (Net of Tax)		Derivatives Designated as Hedges (Net of Tax)		Accumulated Other Comprehensive Earnings (Loss)
Balance at December 31, 2017	$	(307)	$	(362)	$	13	$	(656)
Other comprehensive earnings (loss) before reclassifications		(197)		33		25		(139)
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings		—		52		(92)		(40)
Balance at December 31, 2018	$	(504)	$	(277)	$	(54)	$	(835)
Other comprehensive earnings (loss) before reclassifications		119		(223)		67		(37)
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings		—		18		(22)		(4)
Currency translation recognized in earnings from the sale of the Argentina steel aerosol business		45		—		—		45
Stranded tax effects reclassified into retained earnings		—		(76)		(3)		(79)
Balance at December 31, 2019	$	(340)	$	(558)	$	(12)	$	(910)

The following table provides additional details of the amounts reclassified into net earnings from accumulated other comprehensive earnings (loss):

	Years Ended December 31,
($  in millions)	2019		2018		2017
Gains (losses) on cash flow hedges:
Commodity contracts recorded in net sales	$	18	$	1	$	(7)
Commodity contracts recorded in cost of sales		(45)		54		50
Currency exchange contracts recorded in selling, general and administrative		7		1		(1)
Cross-currency swaps recorded in selling, general and administrative		35		49		(136)
Cross-currency swaps recorded in interest expense		12		14		16
Interest rate contracts recorded in interest expense		1		—		—
Total before tax effect		28		119		(78)
Tax benefit (expense) on amounts reclassified into earnings		(6)		(27)		13
Recognized gain (loss), net of tax	$	22	$	92	$	(65)
Amortization of pension and other postretirement benefits: (a)
Prior service income (expense)	$	(2)	$	(1)	$	(1)
Actuarial gains (losses)		(14)		(32)		(34)
Effect of pension settlements		(8)		(36)		(44)
Total before tax effect		(24)		(69)		(79)
Tax benefit (expense) on amounts reclassified into earnings		6		17		30
Recognized gain (loss), net of tax	$	(18)	$	(52)	$	(49)

(a) These components include the computation of net periodic benefit cost detailed in Note 17.