Employee Benefit Obligations

6 Months Ended

Jun. 30, 2024

Employee Benefit Obligations

Employee Benefit Obligations

17.    Employee Benefit Obligations

	June 30,		December 31,
($ in millions)	2024		2023
Underfunded defined benefit pension liabilities	$	291	$	323
Less: Current portion		(20)		(21)
Long-term defined benefit pension liabilities		271		302
Long-term retiree medical liabilities		83		90
Deferred compensation plans		209		280
Other		61		63
	$	624	$	735

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

	Three Months Ended June 30,
	2024						2023
($ in millions)	U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total
Ball-sponsored plans:
Service cost	$	4	$	—	$	4	$	4	$	2	$	6
Interest cost		15		21		36		16		21		37
Expected return on plan assets		(22)		(19)		(41)		(21)		(26)		(47)
Amortization of prior service cost		—		—		—		—		—		—
Recognized net actuarial loss		1		3		4		—		1		1
Total net periodic benefit cost	$	(2)	$	5	$	3	$	(1)	$	(2)	$	(3)

	Six Months Ended June 30,
	2024						2023
($ in millions)	U.S.		Non-U.S.		Total		U.S.		Non-U.S.		Total
Ball-sponsored plans:
Service cost	$	8	$	1	$	9	$	8	$	3	$	11
Interest cost		30		41		71		32		42		74
Expected return on plan assets		(44)		(39)		(83)		(43)		(50)		(93)
Amortization of prior service cost		—		1		1		—		1		1
Recognized net actuarial loss		2		7		9		1		1		2
Total net periodic benefit cost	$	(4)	$	11	$	7	$	(2)	$	(3)	$	(5)

Non-service pension income of $1 million and $9 million for the three months ended June 30, 2024 and 2023, respectively, and income of $2 million and $16 million for the six months ended June 30, 2024 and 2023 respectively, is included in selling, general and administrative in the unaudited condensed consolidated statements of earnings.

Contributions to the company’s defined benefit pension plans were $15 million for the first six months of 2024 compared to $9 million for the first six months of 2023, and such contributions are expected to be approximately $28 million for the full year of 2024. This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors.

In November 2023, the Trustee Board of the U.K. defined benefit pension plan entered into an agreement with an insurance company for a bulk annuity purchase, or “buy-in”, for its U.K. defined benefit pension plan to reduce retirement plan risk, while delivering promised benefits to plan participants. This transaction allows the company to reduce volatility by removing investment, longevity, mortality, interest rate and inflation risk upon the transfer of substantially all of the pension plan assets to the insurer in exchange for the group annuity insurance contract. At this time the company retains both the fair value of the annuity contract within plan assets and the pension benefit obligations related to these participants. The plan was frozen on April 5, 2024, and future service accruals were replaced with enhanced defined contribution benefits for the impacted employees. The company anticipates the “buy-out” may occur within two years of the plan freeze, which will trigger a pension settlement that will result in all plan balances, including accumulated pension components within other comprehensive income, being charged to expense as a noncash settlement charge.