Equity and Accumulated Other Comprehensive Earnings

6 Months Ended

Jun. 30, 2020

Equity and Accumulated Other Comprehensive Earnings

Equity and Accumulated Other Comprehensive Earnings

18.    Equity and Accumulated Other Comprehensive Earnings

The following tables provide additional details of the company’s equity activity:

	Common Stock			Treasury Stock					Accumulated Other
	Number of			Number of			Retained		Comprehensive		Noncontrolling		Total
($ in millions; share amounts in thousands)	Shares	Amount		Shares	Amount		Earnings		Earnings (Loss)		Interest		Equity
Balance at March 31, 2020	678,128	$	1,151	(352,209)	$	(3,159)	$	5,777	$	(1,139)	$	70	$	2,700
Net earnings	—		—	—		—		94		—		(2)		92
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		71		—		71
Common dividends, net of tax benefits	—		—	—		—		(50)		—		—		(50)
Treasury stock purchases	—		—	—		—		—		—		—		—
Treasury shares reissued	—		—	106		7		—		—		—		7
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	356		2	—		—		—		—		—		2
Other activity	—		—	1		7		1		—		—		8
Balance at June 30, 2020	678,484	$	1,153	(352,102)	$	(3,145)	$	5,822	$	(1,068)	$	68	$	2,830

	Common Stock			Treasury Stock					Accumulated Other
	Number of			Number of			Retained		Comprehensive		Noncontrolling		Total
($ in millions; share amounts in thousands)	Shares	Amount		Shares	Amount		Earnings		Earnings (Loss)		Interest		Equity
Balance at March 31, 2019	674,692	$	1,154	(340,223)	$	(2,323)	$	5,504	$	(789)	$	103	$	3,649
Net earnings	—		—	—		—		197		—		—		197
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		(8)		—		(8)
Common dividends, net of tax benefits	—		—	—		—		(50)		—		—		(50)
Treasury stock purchases	—		—	(3,540)		(251)		—		—		—		(251)
Treasury shares reissued	—		—	140		7		—		—		—		7
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	771		18	—		—		—		—		—		18
Other activity	—		—	—		1		—		—		1		2
Balance at June 30, 2019	675,463	$	1,172	(343,623)	$	(2,566)	$	5,651	$	(797)	$	104	$	3,564

	Common Stock			Treasury Stock					Accumulated Other
	Number of			Number of			Retained		Comprehensive		Noncontrolling		Total
($ in millions; share amounts in thousands)	Shares	Amount		Shares	Amount		Earnings		Earnings (Loss)		Interest		Equity
Balance at December 31, 2019	676,302	$	1,178	(351,667)	$	(3,122)	$	5,803	$	(910)	$	70	$	3,019
Net earnings (loss)	—		—	—		—		117		—		(2)		115
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		(158)		—		(158)
Common dividends, net of tax benefits	—		—	—		—		(99)		—		—		(99)
Treasury stock purchases	—		—	(774)		(54)		—		—		—		(54)
Treasury shares reissued	—		—	338		14		—		—		—		14
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	2,182		(25)	—		—		—		—		—		(25)
Other activity	—		—	1		17		1		—		—		18
Balance at June 30, 2020	678,484	$	1,153	(352,102)	$	(3,145)	$	5,822	$	(1,068)	$	68	$	2,830

	Common Stock			Treasury Stock					Accumulated Other
	Number of			Number of			Retained		Comprehensive		Noncontrolling		Total
($ in millions; share amounts in thousands)	Shares	Amount		Shares	Amount		Earnings		Earnings (Loss)		Interest		Equity
Balance at December 31, 2018	673,237	$	1,157	(337,979)	$	(2,205)	$	5,341	$	(835)	$	104	$	3,562
Net earnings	—		—	—		—		314		—		—		314
Other comprehensive earnings (loss), net of tax	—		—	—		—		—		117		—		117
Reclassification of stranded tax effects	—		—	—		—		79		(79)		—		—
Common dividends, net of tax benefits	—			—		—		(84)		—		—		(84)
Treasury stock purchases	—		—	(6,174)		(380)		—		—		—		(380)
Treasury shares reissued	—		—	530		12		—		—		—		12
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged	2,226		15	—		—		—		—		—		15
Other activity	—		—	—		7		1		—		—		8
Balance at June 30, 2019	675,463	$	1,172	(343,623)	$	(2,566)	$	5,651	$	(797)	$	104	$	3,564

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, 2019	$	(340)	$	(558)	$	(12)	$	(910)
Other comprehensive earnings (loss) before reclassifications		(163)		(104)		18		(249)
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings		—		94		(3)		91
Balance at June 30, 2020	$	(503)	$	(568)	$	3	$	(1,068)

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

	Three Months Ended June 30,				Six Months Ended June 30,
($  in millions)	2020		2019		2020		2019
Gains (losses) on cash flow hedges:
Commodity contracts recorded in net sales	$	37	$	4	$	37	$	6
Commodity contracts recorded in cost of sales		(39)		(11)		(35)		(16)
Currency exchange contracts recorded in selling, general and administrative		(11)		(1)		7		(1)
Cross-currency swaps recorded in selling, general and administrative		—		(14)		(1)		9
Interest rate contracts recorded in interest expense		(2)		4		(3)		8
Total before tax effect		(15)		(18)		5		6
Tax benefit (expense) on amounts reclassified into earnings		3		3		(2)		(3)
Recognized gain (loss), net of tax	$	(12)	$	(15)	$	3	$	3
Amortization of pension and other postretirement benefits: (a)
Prior service income (expense)	$	(1)	$	—	$	(1)	$	—
Actuarial gains (losses)		(9)	$	(5)		(20)	$	(10)
Effect of pension settlements		(104)		—		(104)		—
Total before tax effect		(114)		(5)		(125)		(10)
Tax benefit (expense) on amounts reclassified into earnings		28		2		31		3
Recognized gain (loss), net of tax	$	(86)	$	(3)	$	(94)	$	(7)

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

.

In May 2019, in a privately negotiated transaction, Ball entered into an accelerated share repurchase agreement to buy $250 million of its common shares using cash on hand and available borrowings. The company advanced the $250 million in May 2019, and received 3.4 million shares, which represented approximately 85 percent of the total shares calculated using the closing price on that date. The company received an additional 0.1 million shares in June 2019. The average price paid per share under this agreement as of June 30, 2019, was $62.33.