Employee Benefit Obligations

3 Months Ended

Mar. 31, 2020

Employee Benefit Obligations

Employee Benefit Obligations

17.    Employee Benefit Obligations

	March 31,		December 31,
($ in millions)	2020		2019
Underfunded defined benefit pension liabilities	$	929	$	918
Less: Current portion		(24)		(24)
Long-term defined benefit pension liabilities		905		894
Long-term retiree medical liabilities		164		156
Deferred compensation plans		333		362
Other		33		74
	$	1,435	$	1,486

Components of net periodic benefit cost associated with the company’s defined benefit pension plans were as follows:

	Three Months Ended March 31,
	2020						2019
($ in millions)	U.S.		Foreign		Total		U.S.		Foreign		Total
Ball-sponsored plans:
Service cost	$	16	$	4	$	20	$	12	$	3	$	15
Interest cost		20		14		34		25		18		43
Expected return on plan assets		(31)		(21)		(52)		(28)		(28)		(56)
Amortization of prior service cost		—		1		1		—		1		1
Recognized net actuarial loss		10		1		11		6		1		7
Total net periodic benefit cost	$	15	$	(1)	$	14	$	15	$	(5)	$	10

Non-service pension income of $6 million for the three months ended March 31, 2020 and 2019, is included in selling, general, and administrative (SG&A) expenses.

Contributions to the company’s defined benefit pension plans were $11 million for the first three months of 2020 compared to $6 million for the first three months of 2019, and such contributions are expected to be approximately $90 million for the full year of 2020. This estimate may change based on changes to the U.S. Pension Protection Act, effects of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the return achieved on actual plan assets, among other factors.

In April 2020, Ball completed the purchase of non-participating group annuity contracts that were transferred to an insurance company for benefit obligations related to the certain of the company’s U.S. pension plans. The purchase will trigger settlement accounting and result in the recognition of settlement losses recorded in business consolidation and other activities that are expected to be approximately $100 million.