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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2022

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-07349

BALL CORPORATION

State of Indiana

(State or other jurisdiction of incorporation or
organization)

35-0160610

(I.R.S. Employer Identification No.)

9200 West 108th Circle

Westminster, CO

(Address of registrant’s principal executive office)

80021

(Zip Code)

Registrant’s telephone number, including area code: 303/469-3131

Securities registered pursuant to section 12(b) of the Act:

Class

Trading Symbol

Name of Exchange

Outstanding at July 31, 2022

Common Stock, without par value

BALL

NYSE

314,307,448 shares

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No

Ball Corporation

QUARTERLY REPORT ON FORM 10-Q

For the period ended June 30, 2022

INDEX

Page
Number

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements

1

Unaudited Condensed Consolidated Statements of Earnings (Loss) for the Three and Six Months Ended June 30, 2022 and 2021

1

Unaudited Condensed Consolidated Statements of Comprehensive Earnings (Loss) for the Three and Six Months Ended June 30, 2022 and 2021

2

Unaudited Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021

3

Unaudited Condensed Consolidated Statements of Cash Flows for the Three and Six Months Ended June 30, 2022 and 2021

4

Notes to the Unaudited Condensed Consolidated Financial Statements

5

Note 1, Basis of Presentation

5

Note 2, Accounting Pronouncements

6

Note 3, Business Segment Information

7

Note 4, Acquisitions and Dispositions

8

Note 5, Revenue from Contracts with Customers

9

Note 6, Business Consolidation and Other Activities

10

Note 7, Supplemental Cash Flow Statement Disclosures

12

Note 8, Receivables, Net

12

Note 9, Inventories, Net

13

Note 10, Property, Plant and Equipment, Net

13

Note 11, Goodwill

13

Note 12, Intangible Assets, Net

14

Note 13, Other Assets

14

Note 14, Leases

14

Note 15, Debt

15

Note 16, Taxes on Income

16

Note 17, Employee Benefit Obligations

16

Note 18, Equity and Accumulated Other Comprehensive Earnings (Loss)

17

Note 19, Earnings (Loss) and Dividends Per Share

19

Note 20, Financial Instruments and Risk Management

20

Note 21, Contingencies

24

Note 22, Indemnifications and Guarantees

26

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

Item 4.

Controls and Procedures

37

PART II.

OTHER INFORMATION

38

PART I. FINANCIAL INFORMATION

Item 1.   FINANCIAL STATEMENTS

BALL CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions, except per share amounts)

2022

    

2021

    

2022

    

2021

Net sales

$

4,134

$

3,459

$

7,850

$

6,584

Costs and expenses

Cost of sales (excluding depreciation and amortization)

(3,445)

(2,760)

(6,461)

(5,253)

Depreciation and amortization

(168)

(172)

(353)

(340)

Selling, general and administrative

(161)

(166)

(347)

(323)

Business consolidation and other activities

(467)

12

(186)

5

(4,241)

(3,086)

(7,347)

(5,911)

Earnings (loss) before interest and taxes

(107)

373

503

673

Interest expense

(68)

(66)

(137)

(133)

Debt refinancing and other costs

(2)

(2)

Total interest expense

(70)

(66)

(139)

(133)

Earnings (loss) before taxes

(177)

307

364

540

Tax (provision) benefit

(1)

(116)

(101)

(148)

Equity in results of affiliates, net of tax

13

11

19

10

Net earnings (loss)

(165)

202

282

402

Net earnings (loss) attributable to noncontrolling interests

(9)

(10)

Net earnings (loss) attributable to Ball Corporation

$

(174)

$

202

$

272

$

402

Earnings (loss) per share:

Basic

$

(0.55)

$

0.62

$

0.85

$

1.23

Diluted

$

(0.55)

$

0.61

$

0.84

$

1.20

Weighted average shares outstanding: (000s)

Basic

317,006

327,625

318,944

327,718

Diluted

317,006

333,378

323,316

333,615

See accompanying notes to the unaudited condensed consolidated financial statements.

1

BALL CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

    

2022

    

2021

    

2022

    

2021

Net earnings (loss)

$

(165)

$

202

$

282

$

402

Other comprehensive earnings (loss):

Currency translation adjustment

346

48

254

36

Pension and other postretirement benefits

(6)

8

2

49

Derivatives designated as hedges

(86)

60

(19)

106

Total other comprehensive earnings (loss)

254

116

237

191

Income tax (provision) benefit

11

(16)

(1)

(34)

Total other comprehensive earnings (loss), net of tax

265

100

236

157

Total comprehensive earnings (loss)

100

302

518

559

Comprehensive (earnings) loss attributable to noncontrolling interests

(9)

(10)

Comprehensive earnings (loss) attributable to Ball Corporation

$

91

$

302

$

508

$

559

See accompanying notes to the unaudited condensed consolidated financial statements.

2

BALL CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,

December 31,

($ in millions)

    

2022

    

2021

Assets

Current assets

Cash and cash equivalents

$

480

$

563

Receivables, net

3,139

2,560

Inventories, net

2,473

1,795

Other current assets

401

305

Total current assets

6,493

5,223

Noncurrent assets

Property, plant and equipment, net

6,629

6,502

Goodwill

4,350

4,378

Intangible assets, net

1,474

1,688

Other assets

1,980

1,923

Total assets

$

20,926

$

19,714

Liabilities and Equity

Current liabilities

Short-term debt and current portion of long-term debt

$

251

$

15

Accounts payable

4,991

4,759

Accrued employee costs

273

349

Other current liabilities

968

830

Total current liabilities

6,483

5,953

Noncurrent liabilities

Long-term debt

8,847

7,722

Employee benefit obligations

973

1,205

Deferred taxes

601

665

Other liabilities

489

484

Total liabilities

17,393

16,029

Equity

Common stock (681,865,591 shares issued - 2022; 680,944,867 shares issued - 2021)

1,232

1,220

Retained earnings

6,987

6,843

Accumulated other comprehensive earnings (loss)

(346)

(582)

Treasury stock, at cost (367,399,061 shares - 2022; 360,101,024 shares - 2021)

(4,408)

(3,854)

Total Ball Corporation shareholders' equity

3,465

3,627

Noncontrolling interests

68

58

Total equity

3,533

3,685

Total liabilities and equity

$

20,926

$

19,714

See accompanying notes to the unaudited condensed consolidated financial statements.

3

BALL CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

($ in millions)

    

2022

    

2021

Cash Flows from Operating Activities

Net earnings (loss)

$

282

$

402

Adjustments to reconcile net earnings (loss) to cash provided by (used in) operating activities:

Depreciation and amortization

353

340

Business consolidation and other activities

186

(5)

Deferred tax provision (benefit)

(32)

73

Other, net

(204)

(146)

Changes in working capital components, net of dispositions

(983)

(496)

Cash provided by (used in) operating activities

(398)

168

Cash Flows from Investing Activities

Capital expenditures

(819)

(757)

Business dispositions, net of cash sold

298

1

Other, net

25

20

Cash provided by (used in) investing activities

(496)

(736)

Cash Flows from Financing Activities

Long-term borrowings

3,216

Repayments of long-term borrowings

(1,895)

(14)

Net change in short-term borrowings

220

19

Proceeds (payments) from issuances of common stock, net of shares used for taxes

12

18

Acquisitions of treasury stock

(578)

(146)

Common stock dividends

(128)

(99)

Other, net

(13)

Cash provided by (used in) financing activities

834

(222)

Effect of exchange rate changes on cash

(13)

(5)

Change in cash, cash equivalents and restricted cash

(73)

(795)

Cash, cash equivalents and restricted cash - beginning of period

579

1,381

Cash, cash equivalents and restricted cash - end of period

$

506

$

586

See accompanying notes to the unaudited condensed consolidated financial statements.

4

1.     Basis of Presentation

The accompanying unaudited condensed consolidated financial statements (consolidated financial statements) include the accounts of Ball Corporation and its controlled affiliates, including its consolidated variable interest entities (collectively Ball, the company, we or our), and have been prepared by the company. Certain information and footnote disclosures, including critical and significant accounting policies normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted for this quarterly presentation.

Results of operations for the periods shown are not necessarily indicative of results for the year, particularly in view of the seasonality in the packaging segments and the variability of contract sales in the company’s aerospace segment. These consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and the notes thereto included in the company’s 2021 Annual Report on Form 10-K filed on February 16, 2022, pursuant to the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2021 (annual report).

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and reported amounts of sales and expenses during the reporting periods. These estimates are based on historical experience and various assumptions believed to be reasonable under the circumstances. Ball’s management evaluates these estimates on an ongoing basis and adjusts or revises the estimates as circumstances change. As future events and their impacts cannot be determined with precision, actual results may differ from these estimates. In the opinion of management, the consolidated financial statements reflect all adjustments that are of a normal recurring nature and are necessary to fairly state the results of the periods presented.

Certain prior year amounts have been reclassified in order to conform to the current year presentation.

Risks and Uncertainties

Russia

The current global business environment is being impacted directly and indirectly by the effects of the Russian invasion of Ukraine. Ball has suspended future investments in Russia and is pursuing the sale of its aluminum beverage packaging business located in Russia. During the second quarter of 2022, Ball experienced deteriorating conditions and determined this constituted a triggering event for its Russian long-lived asset group. As a result, Ball performed a Level 3 expected cash flow recoverability analysis, using an income valuation approach with various scenarios, including a near term sale of the business, to estimate the fair value of the long-lived assets, and recorded an impairment loss of $435 million. This non-cash charge has been presented in business consolidation and other activities in the company’s unaudited condensed consolidated statements of earnings (loss). See Note 4 for additional discussion. As of June 30, 2022, Ball’s Russian aluminum packaging business does not meet the requirements for held for sale presentation in Ball’s consolidated financial statements.

The ongoing conflict continues to have the potential to increase Ball’s vulnerabilities to near-term, severe impacts related to its Russian business and facilities and it is not possible to accurately predict all future impacts of the invasion. The Russian government has made warnings to companies that cease operations during its invasion of Ukraine and the potential exists that Ball’s operations in Russia could be negatively impacted. As such, Russia’s invasion of Ukraine and the resulting effects have the potential to impact significant estimates used by Ball in the preparation of its consolidated financial statements, which could result in additional impairments.

5

Ball’s Russian business, which is presented in its beverage packaging, EMEA, reportable operating segment, represented approximately 4 percent of the company's total net sales and 8 percent of the company's total comparable operating earnings for the twelve months ended December 31, 2021. In addition, our plants in Russia accounted for approximately 5 percent of the company's 112.5 billion global beverage can unit shipments for the twelve months ended December 31, 2021. As of June 30, 2022, after the $435 million long-lived asset impairment charge, Ball’s Russian business had net assets of $380 million, which consisted primarily of working capital and goodwill that will be allocated to the disposal group upon a future disposal. As of June 30, 2022, in addition to the $380 million of net assets, Ball also had cumulative currency translation gains of $180 million, presented in accumulated other comprehensive earnings (loss) on Ball’s unaudited condensed consolidated balance sheets, that will be subject to release upon a disposal of the Russian business. These values are subject to change based on the Russian ruble exchange rate.

Novel Coronavirus (COVID-19)

The current global business environment continues to be impacted directly and indirectly by the effects of the novel coronavirus (COVID-19), and it is not possible to accurately estimate the impacts of COVID-19. However, Ball management has reviewed the estimates used in preparing the company’s consolidated financial statements and the following have a reasonably possible likelihood of being affected, to a material extent, by the direct and indirect impacts of COVID-19 in the near term.

Estimates regarding the future financial performance of the business used in the impairment tests for goodwill, long-lived assets, equity method investments, recoverability of deferred tax assets and estimates regarding cash needs and associated indefinite reinvestment assertions;
Estimates of recoverability for customer receivables;
Estimates of net realizable value for inventory; and
Estimates regarding the likelihood of forecasted transactions associated with hedge accounting positions at June 30, 2022, which could impact the company’s ability to satisfy hedge accounting requirements and result in the recognition of income and/or expenses.

In addition to the above potential impacts on the estimates used in preparing consolidated financial statements, COVID-19 has the potential to increase Ball’s vulnerabilities to near-term severe impacts related to certain concentrations in its business. In line with other companies in the packaging and aerospace industries, Ball makes the majority of its sales and significant purchases to or from a relatively small number of global, or large regional, customers and suppliers. Furthermore, Ball makes the majority of its sales from a small number of product lines. The potential of COVID-19 to affect a significant customer or supplier, or to affect demand for certain products to a significant degree, heightens the vulnerability of Ball to these concentrations.

2.     Accounting Pronouncements

New Accounting Guidance

Government Assistance Disclosure

In 2021, new guidance was issued by the Financial Accounting Standards Board (FASB) related to the disclosure of government assistance received. The company is currently assessing the impact that the adoption of this new guidance will have on its consolidated financial statements.

Reference Rate Reform

In 2020, new guidance was issued by the FASB related to global reference rates reform. The company is currently evaluating the impact that the transition from its London Inter-Bank Offered Rate (LIBOR) based interest rate agreements to Secured Overnight Financing Rate (SOFR) based interest rate agreements will have on its consolidated financial statements. Based on our current understanding, the LIBOR to SOFR transition is not expected to have a material impact on our financial condition, results of operations or cash flows.

6

3.     Business Segment Information

Ball’s operations are organized and reviewed by management along its product lines and geographical areas and presented in the four reportable segments outlined below.

Beverage packaging, North and Central America: Consists of operations in the U.S., Canada and Mexico that manufacture and sell aluminum beverage containers throughout those countries.

Beverage packaging, EMEA: Consists of operations in numerous countries throughout Europe, including Russia, as well as Egypt and Turkey, that manufacture and sell aluminum beverage containers throughout those countries.

Beverage packaging, South America: Consists of operations in Brazil, Argentina, Paraguay and Chile that manufacture and sell aluminum beverage containers throughout most of South America.

Aerospace: Consists of operations that manufacture and sell aerospace and other related products and provide services used in the defense, civil space and commercial space industries.

As presented in the table below, Other consists of a non-reportable operating segment (beverage packaging, other) that manufactures and sells aluminum beverage containers in India, Saudi Arabia and throughout the Asia Pacific region; a non-reportable operating segment that manufactures and sells extruded aluminum aerosol containers and recloseable aluminum bottles across multiple consumer categories as well as aluminum slugs (aerosol packaging) throughout North America, South America, Europe, and Asia; a non-reportable operating segment that manufactures and sells aluminum cups (aluminum cups); undistributed corporate expenses; and intercompany eliminations and other business activities.

The accounting policies of the segments are the same as those used in the company’s consolidated financial statements as discussed in Note 1. The company also has investments in operations in Guatemala, Panama, the U.S. and Vietnam that are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings. In 2021, Ball sold its minority-owned investment in South Korea. In the first quarter of 2022, Ball sold its remaining equity method investment in Ball Metalpack. Refer to Note 4 for additional details on both transactions.

7

Summary of Business by Segment

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

    

2022

    

2021

    

2022

    

2021

Net sales

Beverage packaging, North and Central America

$

1,775

$

1,524

$

3,384

$

2,820

Beverage packaging, EMEA

1,133

906

2,075

1,702

Beverage packaging, South America

534

452

1,028

939

Aerospace

490

459

994

883

Reportable segment sales

3,932

3,341

7,481

6,344

Other

202

118

369

240

Net sales

$

4,134

$

3,459

$

7,850

$

6,584

Comparable operating earnings

Beverage packaging, North and Central America

$

164

$

193

$

338

$

333

Beverage packaging, EMEA

129

124

229

224

Beverage packaging, South America

52

78

130

171

Aerospace

36

34

79

69

Reportable segment comparable operating earnings

381

429

776

797

Reconciling items

Other (a)

11

(30)

(18)

(53)

Business consolidation and other activities

(467)

12

(186)

5

Amortization of acquired intangibles

(32)

(38)

(69)

(76)

Earnings (loss) before interest and taxes

(107)

373

503

673

Interest expense

(68)

(66)

(137)

(133)

Debt refinancing and other costs

(2)

(2)

Total interest expense

(70)

(66)

(139)

(133)

Earnings (loss) before taxes

$

(177)

$

307

$

364

$

540

(a)Includes undistributed corporate expenses, net, of $15 million and $28 million for the three months ended June 30, 2022 and 2021, respectively, and $48 million and $54 million for the six months ended June 30, 2022 and 2021, respectively.

The company does not disclose total assets by segment as such information is not provided to the chief operating decision maker.

4.     Acquisitions and Dispositions

Russia

In the first quarter of 2022, the company announced that it is pursuing the sale of its aluminum beverage packaging business located in Russia. Ball experienced deteriorating conditions and determined this constituted a triggering event for its Russian long-lived asset group. As a result, Ball performed an expected cash flow recoverability analysis, using an income valuation approach with various scenarios, including a near-term sale of the business, to estimate the fair value of the long-lived assets, and recorded an impairment loss of $435 million. This non-cash charge has been presented in business consolidation and other activities in the company’s unaudited condensed consolidated statements of earnings (loss). As of June 30, 2022, Ball’s Russian aluminum beverage packaging business does not meet the requirements for held for sale presentation in Ball’s consolidated financial statements.

8

Ball Metalpack Investment

During the first quarter of 2022, Ball sold its remaining 49 percent owned equity method investment in Ball Metalpack to Sonoco, a global provider of consumer, industrial, healthcare and protective packaging, for total consideration of approximately $298 million, all of which was received in cash in the first quarter of 2022. Ball’s carrying value of the investment before the sale was zero; therefore, a gain from the sale of $298 million is reported in business consolidation and other activities in the unaudited condensed consolidated statements of earnings (loss). Cash proceeds of $298 million related to the sale are presented in business dispositions, net of cash sold, in the unaudited condensed consolidated statement of cash flows.

Ball also received proceeds from Ball Metalpack for the repayment of an outstanding promissory note and accrued interest of approximately $16 million, which was recorded as a gain in business consolidation and other activities in the unaudited condensed consolidated statements of earnings (loss).

South Korea Investment

In the third quarter of 2021, Ball sold its minority-owned investment in South Korea. Consideration for the transaction was cash of $120 million, of which $110 million has been received, and is presented in business dispositions in cash flows from investing activities in Ball’s unaudited condensed consolidated statements of cash flows. The remaining $10 million will be received on or before December 31, 2022, and is presented in receivables, net on Ball’s unaudited condensed consolidated balance sheets. In the second quarter of 2021, the company recorded a loss of $5 million related to the disposal, which was presented in business consolidation and other activities in the unaudited condensed consolidated statement of earnings (loss).

5.     Revenue from Contracts with Customers

The following table disaggregates the company’s net sales based on the timing of transfer of control:

Three Months Ended June 30,

Six Months Ended June 30,

Years Ended June 30,

Point in Time

Over Time

Total

 

Point in Time

Over Time

Total

2022

$

705

$

3,429

$

4,134

$

1,306

$

6,544

$

7,850

2021

624

2,835

3,459

1,234

5,350

6,584

Contract Balances

The company did not have any contract assets at either June 30, 2022, or December 31, 2021. Unbilled receivables, which are not classified as contract assets, represent arrangements in which sales have been recorded prior to billing and right to payment is unconditional.

The opening and closing balances of the company’s current and noncurrent contract liabilities are as follows:

Contract

Contract

Liabilities

Liabilities

($ in millions)

    

(Current)

(Noncurrent)

Balance at December 31, 2021

$

272

$

38

Increase (decrease)

(37)

(23)

Balance at June 30, 2022

$

235

$

15

During the six months ended June 30, 2022, total contract liabilities decreased by $60 million, which is net of cash received of $322 million and amounts recorded as sales of $382 million, the majority of which related to current contract liabilities. The amount of sales recorded in the six months ended June 30, 2022, which were included in the opening contract liabilities balances, was $272 million, all of which related to current contract liabilities. Current contract liabilities are classified within other current liabilities on the unaudited condensed consolidated balance sheet and noncurrent contract liabilities are classified within other liabilities.

9

The company also recorded a reduction in net sales of $4 million and additional net sales of $5 million in the three and six months ended June 30, 2022, respectively, and net sales of $4 million and $11 million in the three and six months ended June 30, 2021, respectively, from performance obligations satisfied (or partially satisfied) in prior periods. These sales amounts are the result of changes in the transaction price of the company’s contracts with customers.

Transaction Price Allocated to Remaining Performance Obligations

The table below discloses: (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts with an original duration of greater than one year, and (2) when the company expects to record sales on these multi-year contracts.

($ in millions)

    

Next Twelve Months

Thereafter

Total

Sales expected to be recognized on multi-year contracts in place as of June 30, 2022

$

1,439

$

1,517

$

2,956

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 (loss):

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

    

2022

    

2021

    

2022

    

2021

Beverage packaging, North and Central America

$

(2)

$

(2)

$

(1)

$

(1)

Beverage packaging, EMEA

(438)

(1)

(439)

(3)

Beverage packaging, South America

(21)

21

(22)

20

Other

(6)

(6)

276

(11)

$

(467)

$

12

$

(186)

$

5

2022

Beverage Packaging, North and Central America

During the three and six months ended June 30, 2022, the company recorded charges of $2 million and $1 million, respectively, for individually insignificant activities.

Beverage Packaging, EMEA

During the three and six months ended June 30, 2022, the company recorded charges of $435 million associated with impairment losses on Russia’s long-lived asset group. See Note 1 for further details. Additional charges in the three and six months ended June 30, 2022, were $3 million and $4 million, respectively, for individually insignificant activities.

Beverage Packaging, South America

During the three and six months ended June 30, 2022, Ball recorded charges of $22 million related to an increased risk of not being able to fully collect amounts due from a regional customer in Brazil. See Note 21 for further details. Additional charges in the three months ended June 30, 2022, were $1 million for individually insignificant activities.

10

Other

During the three months ended June 30, 2022, the company recorded the following amounts:

Charges of $7 million associated with the reduction of sales price due to customary closing adjustments related to the sale of Ball’s remaining equity method investment in Ball Metalpack. See Note 4 for further details.
Net gains of $4 million associated with Ball’s inability to hedge Russian ruble currency exposures.
Charges of $3 million for individually insignificant activities.

During the six months ended June 30, 2022, the company recorded the following amounts:

A gain of $298 million related to the sale of Ball’s remaining equity method investment in Ball Metalpack. See Note 4 for further details.
A charge related to a donation of $30 million to The Ball Foundation, a non-profit philanthropic organization with efforts to build a better world.
A gain of $16 million from Ball Metalpack’s repayment of a loan which was formerly fully reserved.
Net charges of $5 million associated with Ball’s inability to hedge Russian ruble currency exposures.
Charges of $3 million for individually insignificant activities.

2021

Beverage Packaging, North and Central America

During the three and six months ended June 30, 2021, the company recorded net charges of $2 million and $1 million, respectively, for individually insignificant activities.

Beverage Packaging, EMEA

During the three and six months ended June 30, 2021, the company recorded charges of $1 million and $3 million, respectively, for individually insignificant activities in connection with previously announced plant closures, restructuring and other activities.

Beverage Packaging, South America

During the three and six months ended June 30, 2021, the company recorded a $22 million gain related to indirect tax gain contingencies in Brazil as these amounts became estimable and realizable. The company’s Brazilian subsidiaries filed lawsuits in 2014 and 2015 to challenge the Brazilian tax authorities regarding the computation of certain indirect taxes, claiming amounts were overpaid to the tax authorities because the tax base included a “tax on tax” component. See Note 21 for further details. Additional charges in the three and six months ended June 30, 2021, were $1 million and $2 million, respectively, for individually insignificant activities.

Other

During the three and six months ended June 30, 2021, the company recorded an impairment charge of $5 million related to the sale of its minority-owned investment in South Korea. See Note 4 for further details. Additional charges in the three and six months ended June 30, 2021, included $1 million and $6 million, respectively, for individually insignificant activities.

11

7.

Supplemental Cash Flow Statement Disclosures

June 30,

($ in millions)

2022

    

2021

    

Beginning of period:

    

Cash and cash equivalents

$

563

    

$

1,366

Current restricted cash (included in other current assets)

16

    

15

Total cash, cash equivalents and restricted cash

$

579

    

$

1,381

    

End of period:

    

Cash and cash equivalents

$

480

    

$

571

Current restricted cash (included in other current assets)

26

    

15

Total cash, cash equivalents and restricted cash

$

506

    

$

586

The company’s restricted cash is primarily related to receivables factoring programs and represents amounts collected from customers that have not yet been remitted to the banks as of the end of the reporting period.

Non-cash investing activities include the acquisition of property, plant and equipment (PP&E) for which payment has not been made. These non-cash capital expenditures are excluded from the statement of cash flows. A summary of the PP&E acquired but not yet paid for is as follows:

June 30,

($ in millions)

2022

    

2021

    

Beginning of period:

    

PP&E acquired but not yet paid

$

540

    

$

409

End of period:

    

PP&E acquired but not yet paid

$

565

    

$

565

8.     Receivables, Net

June 30,

December 31,

($ in millions)

2022

    

2021

Trade accounts receivable

$

1,731

$

1,304

Unbilled receivables

831

727

Less: Allowance for doubtful accounts

(16)

(9)

Net trade accounts receivable

2,546

2,022

Other receivables

593

538

$

3,139

$

2,560

The company has entered into several regional committed and uncommitted accounts receivable factoring programs with various financial institutions for certain of its receivables. The programs are accounted for as true sales of the receivables, without recourse to Ball, and had combined limits of approximately $2.1 billion and $1.7 billion at June 30, 2022, and December 31, 2021. A total of $511 million and $308 million were available for sale under these programs as of June 30, 2022, and December 31, 2021, respectively.

Other receivables include income and sales tax receivables, aluminum scrap sale receivables and other miscellaneous receivables, including the remaining amount that relates to the sale of Ball’s minority-owned investment in South Korea as detailed in Note 4.

12

9.     Inventories, Net

June 30,

December 31,

($ in millions)

2022

    

2021

Raw materials and supplies

$

1,553

$

1,064

Work-in-process and finished goods

1,016

821

Less: Inventory reserves

(96)

(90)

$

2,473

$

1,795

10.     Property, Plant and Equipment, Net

June 30,

December 31,

($ in millions)

    

2022

    

2021

Land

$

185

$

167

Buildings

2,209

2,081

Machinery and equipment

7,177

6,876

Construction-in-progress

1,341

1,179