Business Consolidation and Other Activities

3 Months Ended

Mar. 31, 2020

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)	2020		2019
Beverage packaging, North and Central America	$	(3)	$	(1)
Beverage packaging, EMEA		(3)		1
Beverage packaging, South America		(1)		(1)
Other		(108)		(13)
	$	(115)	$	(14)

2020

Beverage Packaging, North and Central America

During the three months ended March 31, 2020, the company recorded charges of $3 million for individually insignificant activities in connection with previously announced closures in 2018 of certain beverage can and end manufacturing facilities and other activities.

Beverage Packaging, EMEA

During the three months ended March 31, 2020, the company recorded charges of $3 million for individually insignificant activities in connection with previously announced plant closures, restructuring and other activities.

Beverage Packaging, South America

Charges in the three months ended March 31, 2020, included $1 million of expense for individually insignificant activities.

Other

During 2020, the company recorded the following amounts:

● A non-cash impairment charge of $62 million related to the goodwill of the new beverage packaging, other, operating segment.

● Charges of $23 million resulting from the current deterioration in the real estate market in China, which led to the company reducing the value of potential future consideration due as part of the sale of the company’s China beverage packaging business.

● Charges of $15 million resulting from an adjustment to the selling price of the company’s steel food and aerosol business.

● Credits of $11 million related to the reversal of reserves against working capital recorded in the fourth quarter of 2019 in the new beverage packaging, other, segment as previously at-risk balances were subsequently collected in the first quarter of 2020.

● Charges of $6 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

● Charges of $13 million for individually insignificant activities.

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, EMEA

During the three months ended March 31, 2019, the company recorded credits of $2 million resulting from updated estimates for 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.

Beverage Packaging, South America

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 charges of $13 million for estimated employee severance costs and professional services associated with the planned sale of the company’s former China beverage packaging business, which closed in September 2019.