Employee Benefit Obligations

9 Months Ended

Sep. 30, 2022

17. Employee Benefit Obligations


	September 30,		December 31,
($ in millions)	2022		2021

Underfunded defined benefit pension liabilities	$	487	$	582
Less: Current portion		(19)		(21)
Long-term defined benefit pension liabilities		468		561
Long-term retiree medical liabilities		128		135
Deferred compensation plans		272		441
Other		36		68
	$	904	$	1,205

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


	Three Months Ended September 30,
	2022						2021
($ in millions)	U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total

Ball-sponsored plans:
Service cost	$	22	$	3	$	25	$	20	$	4	$	24
Interest cost		13		12		25		12		9		21
Expected return on plan assets		(27)		(15)		(42)		(29)		(17)		(46)
Amortization of prior service cost		—		1		1		—		1		1
Recognized net actuarial loss		7		1		8		12		1		13
Settlement losses and other one-time charges (a)		3		—		3		130		—		130
Total net periodic benefit cost	$	18	$	2	$	20	$	145	$	(2)	$	143

(a)

The charges in 2021 include settlement losses related to the purchase of non-participating annuities, plant shutdown benefits and other settlements that occur in the normal course of business. The charges in 2022 include one-time plant-related charges. These amounts have been recorded in business consolidation and other activities.


	Nine Months Ended September 30,
	2022						2021
($ in millions)	U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total

Ball-sponsored plans:
Service cost	$	66	$	8	$	74	$	62	$	10	$	72
Interest cost		40		36		76		38		27		65
Expected return on plan assets		(81)		(47)		(128)		(91)		(49)		(140)
Amortization of prior service cost		1		2		3		1		2		3
Recognized net actuarial loss		21		3		24		36		4		40
Settlement losses and other one-time charges (a)		3		—		3		130		—		130
Total net periodic benefit cost	$	50	$	2	$	52	$	176	$	(6)	$	170

(a)

Non-service pension income of $8 million and $11 million for the three months ended September 30, 2022 and 2021, respectively, and income of $25 million and $32 million for the nine months ended September 30, 2022 and 2021, respectively, is included in selling, general, and administrative (SG&A) expenses in the unaudited condensed consolidated statement of earnings.

Contributions to the company’s defined benefit pension plans were $113 million for the first nine months of 2022 compared to $203 million for the first nine months of 2021, and such contributions are expected to be approximately $127 million for the full year of 2022. This estimate may change based on changes to the U.S. Pension Protection Act and the actual returns achieved on plan assets, among other factors.