Employee Benefit Obligations (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of employee benefit obligations


	December 31,		December 31,
($ in millions)	2019		2018

Underfunded defined benefit pension liabilities	$	918	$	954
Less: Current portion		(24)		(25)
Long-term defined benefit pension liabilities		894		929
Long-term retiree medical liabilities		156		157
Deferred compensation plans		362		291
Other		74		78
	$	1,486	$	1,455

Analysis of change in benefit accruals


	December 31,
	2019							2018
($ in millions)	U.S.		Foreign			Total		U.S.			Foreign		Total

Change in projected benefit obligation:
Benefit obligation at prior year end	$	2,579	$	2,991		$	5,570	$	3,061		$	3,432	$	6,493
Service cost		50		11			61		51			14		65
Interest cost		101		72			173		99			72		171
Benefits paid		(205)		(191)			(396)		(191)			(194)		(385)
Net actuarial (gains) losses		324		391			715		(189)			(210)		(399)
Curtailments and settlements including special termination benefits		—		(34)	(a)		(34)		(252)	(a)		—		(252)
Plan amendments		—		—			—		—			52		52
Other		—		1			1		—			2		2
Effect of exchange rates		—		107			107		—			(177)		(177)
Benefit obligation at year end		2,849		3,348			6,197		2,579			2,991		5,570
Change in plan assets:
Fair value of assets at prior year end		1,901		3,274			5,175		2,420			3,632		6,052
Actual return on plan assets		313		311			624		(119)			3		(116)
Employer contributions		188		4			192		32			6		38
Contributions to unfunded plans		6		18			24		7			20		27
Benefits paid		(205)		(191)			(396)		(191)			(194)		(385)
Curtailments and settlements including special termination benefits		—		(34)	(a)		(34)		(256)	(a)		—		(256)
Other		(1)		1			—		8			2		10
Effect of exchange rates		—		131			131		—			(195)		(195)
Fair value of assets at end of year		2,202		3,514			5,716		1,901			3,274		5,175
Funded status	$	(647)	$	166		$	(481)	$	(678)		$	283	$	(395)

(a)

Includes the purchase of non-participating group annuity contracts discussed below.

Schedule of amounts recognized in accumulated other comprehensive (earnings) loss, including other post employment benefits


	December 31,
	2019						2018
($ in millions)	U.S.		Foreign		Total		U.S.		Foreign		Total

Net actuarial (loss) gain	$	(683)	$	(31)	$	(714)	$	(563)	$	140	$	(423)
Net prior service (cost) credit		15		(49)		(34)		16		(50)		(34)
Tax effect and currency exchange rates		174		16		190		216		(36)		180
	$	(494)	$	(64)	$	(558)	$	(331)	$	54	$	(277)

Summary of fair value measurement levels assigned to domestic plan assets


	December 31, 2019
($ in millions)	Level 1		Level 2		Total

U.S. pension assets, at fair value:
Cash and cash equivalents	$	—	$	99	$	99
Corporate equity securities:
Consumer discretionary		83		—		83
Financials		64		—		64
Healthcare		63		—		63
Industrials		76		—		76
Information technology		111		—		111
Utilities		48		—		48
Other		18		—		18
U.S. government, agency and asset-backed securities:
FHLMC mortgage backed securities		—		42		42
FNMA mortgage backed securities		—		73		73
Municipal bonds		—		27		27
Treasury bonds		69		—		69
Other		—		45		45
Corporate bonds and notes:
Communications		—		79		79
Consumer discretionary		—		99		99
Consumer staples		—		100		100
Financials		—		261		261
Healthcare		—		91		91
Industrials		—		101		101
Information technology		—		78		78
Oil and gas		—		91		91
Private placement		—		62		62
Utilities		—		101		101
Other		—		50		50
Commingled funds		22		81		103
Total level 1 and level 2	$	554	$	1,480		2,034
Other investments measured at net asset value (a)						168
Total assets					$	2,202

(a)

Certain investments measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified within the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the change in plan assets reconciliation.


	December 31, 2018
($ in millions)	Level 1		Level 2		Total

U.S. pension assets, at fair value:
Cash and cash equivalents	$	1	$	97	$	98
Corporate equity securities:
Consumer discretionary		61		—		61
Financials		54		—		54
Healthcare		49		—		49
Industrials		59		—		59
Information technology		73		—		73
Other		50		—		50
U.S. government and agency securities:
FHLMC mortgage backed securities		—		40		40
FNMA mortgage backed securities		—		65		65
Municipal bonds		—		52		52
Treasury bonds		45		—		45
Other		—		10		10
Corporate bonds and notes:
Communications		—		67		67
Consumer discretionary		—		80		80
Consumer staples		—		41		41
Financials		—		245		245
Healthcare		—		88		88
Industrials		—		100		100
Information technology		—		54		54
Oil and gas		—		103		103
Private placement		—		69		69
Utilities		—		88		88
Other		—		60		60
Commingled funds		18		72		90
Total level 1 and level 2	$	410	$	1,331		1,741
Other investments measured at net asset value (a)						160
Total assets					$	1,901

(a)

Certain investments measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented within this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the change in plan assets reconciliation.


	December 31,
($ in millions)	2019		2018

U.K. pension assets, at fair value:
Cash and cash equivalents	$	40	$	20
Equity commingled funds		162		—
U.K. government bonds		2,576		2,229
Other		28		33
Total level 1		2,806		2,282
Level 2: Investment funds - corporate bonds		478		—
Other investments measured at net asset value (a)		173		913
Total assets	$	3,457	$	3,195

(a)

Summary of fair value measurement levels assigned to foreign plan assets

Defined Benefit Pension Plans

Employee Benefit Obligations

Schedule of amounts recognized in the consolidated balance sheets


	December 31,
	2019						2018
($ in millions)	U.S.		Foreign		Total		U.S.		Foreign		Total

Long-term pension asset	$	—	$	437	$	437	$	—	$	559	$	559
Defined benefit pension liabilities (a)		(647)		(271)		(918)		(678)		(276)		(954)
Funded status	$	(647)	$	166	$	(481)	$	(678)	$	283	$	(395)

(a)

Included is an unfunded, non-qualified U.S. plan obligation of $32 million at December 31, 2019, that has been annuitized with a corresponding asset of $27 million ($3 million in other current assets and $24 million in other assets). At December 31, 2018, the unfunded non-qualified U.S. plan obligation of $30 million was annuitized with a corresponding asset of $30 million ($3 million in other current assets and $27 million in other assets).

Summary of information for plans with an accumulated benefit obligation in excess of plan assets


	December 31,
	2019						2018
($ in millions)	U.S.		Foreign		Total		U.S.		Foreign		Total

Projected benefit obligation	$	2,849	$	328	$	3,177	$	2,579	$	354	$	2,933
Accumulated benefit obligation		2,769		324		3,093		2,519		351		2,870
Fair value of plan assets (a)		2,202		57		2,259		1,901		79		1,980

(a)	The German, Swedish and certain U.S. plans are unfunded and, therefore, there is no fair value of plan assets associated with these plans.

Components of net periodic benefit cost


	Years Ended December 31,
	2019						2018						2017
($ in millions)	U.S.		Foreign		Total		U.S.		Foreign		Total		U.S.		Foreign		Total

Ball-sponsored plans:
Service cost	$	50	$	11	$	61	$	51	$	14	$	65	$	49	$	17	$	66
Interest cost		101		72		173		99		72		171		124		92		216
Expected return on plan assets		(116)		(109)		(225)		(108)		(108)		(216)		(126)		(110)		(236)
Amortization of prior service cost		1		3		4		2		—		2		2		—		2
Recognized net actuarial loss		22		4		26		33		5		38		34		5		39
Settlement losses		—		8		8		36		—		36		47		(1)		46
Net periodic benefit cost for Ball sponsored plans		58		(11)		47		113		(17)		96		130		3		133
Net periodic benefit cost for multi-employer plans		1		—		1		2		—		2		2		—		2
Total net periodic benefit cost	$	59	$	(11)	$	48	$	115	$	(17)	$	98	$	132	$	3	$	135

Schedule of target asset allocations established


	U.S.
	Legacy Ball		Legacy Rexam		U.K.

Cash and cash equivalents	0-10	%	0-10	%	60-100	%(c)
Equity securities	10-75	%(a)	10-25	%(d)	0-20	%
Fixed income securities	25-70	%(b)	75-90	%	60-100	%(c)
Alternative investments	0-35	%	—	%	0-20	%

(a)

Equity securities may consist of: (1) up to 25 percent large cap equities, (2) up to 10 percent mid cap equities, (3) up to 10 percent small cap equities, (4) up to 35 percent foreign equities and (5) up to 35 percent special equities. Holdings in Ball Corporation common stock or Ball bonds cannot exceed 5 percent of the trust’s assets.

(b)	Debt securities may include up to 10 percent non-investment grade bonds, up to 10 percent bank loans and up to 15 percent international bonds.

(c)	The combined target allocation for fixed income securities and cash and cash equivalents is 60 to 100 percent.

(d)	Equity securities may consist of: (1) up to 20 percent domestic equities, (2) up to 10 percent international equities, and (3) up to 10 percent private equities.

Schedule of actual weighted average asset allocations


	2019		2018
Cash and cash equivalents	2	%	2	%
Equity securities	17	%	28	%
Fixed income securities	79	%	69	%
Alternative investments	2	%	1	%
	100	%	100	%

Defined Benefit Pension Plans | US Plan

Employee Benefit Obligations

Summary of weighted average assumptions used to determine benefit obligations


	U.S.
	2019		2018		2017
Discount rate	3.35	%	4.41	%	3.72	%
Rate of compensation increase	4.03	%	4.02	%	4.15	%

Summary of weighted average assumptions used to determine net periodic benefit cost


	U.S.
	2019		2018		2017
Discount rate	4.41	%	3.72	%	4.27	%
Rate of compensation increase	4.02	%	4.15	%	4.14	%
Expected long-term rate of return on assets	5.58	%	5.14	%	5.50	%

Defined Benefit Pension Plans | Europe

Employee Benefit Obligations

Summary of weighted average assumptions used to determine benefit obligations


	U.K.						Germany
	2019		2018		2017		2019		2018		2017
Discount rate	2.07	%	2.90	%	2.55	%	1.11	%	1.74	%	1.68	%
Rate of compensation increase	3.50	%	3.50	%	4.41	%	2.50	%	2.50	%	2.50	%
Pension increase	3.22	%	3.45	%	3.41	%	1.50	%	1.50	%	1.50	%

Summary of weighted average assumptions used to determine net periodic benefit cost


	U.K.						Germany
	2019		2018		2017		2019		2018		2017
Discount rate	2.90	%	2.55	%	2.70	%	1.74	%	1.68	%	1.52	%
Rate of compensation increase	3.50	%	4.41	%	4.30	%	2.50	%	2.50	%	2.50	%
Pension increase	3.45	%	3.41	%	3.41	%	1.50	%	1.50	%	1.50	%
Expected long-term rate of return on assets	3.40	%	3.05	%	3.20	%	N/A		N/A		N/A