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SEC Filings

8-K
BALL CORP filed this Form 8-K on 02/07/2018
Entire Document
 


Notes to the Condensed Financial Statements (Fourth Quarter 2017)

   
Three Months Ended December 31,
 
Year Ended December 31,
 
   
2017
 
2016
 
2017
 
2016
 
Other
                         
Business consolidation and other activities
                         
Pension settlement (12)
   
 (3)
   
   
 (44)
   
 
Divestment Business indemnities (13)
   
   
   
 (34)
   
 
Rexam acquisition related compensation arrangements (14)
   
 (3)
   
 (2)
   
 (25)
   
 (108)
 
Gain on sale of the Divestment Business (15)
   
 69
   
   
 55
   
 344
 
Rexam transaction related costs (3)
   
   
 (12)
   
 (12)
   
 (301)
 
Currency exchange gain (loss) for restricted cash, intercompany loans and 2020, 2023 euro senior notes (16)
   
   
 1
   
   
 (173)
 
Individually insignificant items
   
 (7)
   
 (4)
   
 (26)
   
 (14)
 
Other non-comparable items
                         
Cost of sales associated with Rexam inventory step-up (4)
   
   
   
   
 (7)
 
Amortization of acquired Rexam intangibles (5)
   
 (2)
   
 (3)
   
 (7)
   
 (6)
 
Catch-up depreciation and amortization for 2016 from finalization of Rexam valuation (6)
   
   
   
 4
   
 
Egyptian pound devaluation (17)
   
   
 (27)
   
   
 (27)
 
Total other
   
 54
   
 (47)
   
 (89)
   
 (292)
 
                           
Total business consolidation and other activities
   
 32
   
 (35)
   
 (221)
   
 (337)
 
Total other non-comparable items
   
 (43)
   
 (60)
   
 (197)
   
 (176)
 
Total non-comparable items
   
 (11)
   
 (95)
   
 (418)
   
 (513)
 
                           
Impact of U.S. tax reform (18)
   
 (71)
   
   
 (71)
   
 
Tax effect on business consolidation and other activities
   
 42
   
 (24)
   
 109
   
 242
 
Tax effect on other non-comparable items
   
 13
   
 17
   
 54
   
 47
 
Total non-comparable tax items
   
 (16)
   
 (7)
   
 92
   
 289
 
Total non-comparable items, net of tax
 
$
 (27)
 
$
 (102)
 
$
 (326)
 
$
 (224)
 

   
Three Months Ended December 31,
 
Year Ended December 31,
 
($ in millions)
 
2017
 
2016
 
2017
 
2016
 
                           
Debt Refinancing and Other Costs
                         
Interest expense on 3.5% and 4.375% senior notes (19)
 
$
 
$
 
$
 
$
 (49)
 
Refinancing of bridge and revolving credit facilities (20)
   
   
   
   
 (30)
 
Economic hedge - interest rate risk (3)
   
   
   
   
 (20)
 
Amortization of unsecured, committed bridge facility financing fees (21)
   
   
   
   
 (7)
 
Individually insignificant items
   
 (2)
   
 (1)
   
 (3)
   
 (3)
 
Total debt refinancing and other costs
   
 (2)
   
 (1)
   
 (3)
   
 (109)
 
Tax effect on debt refinancing and other costs
   
   
   
   
 33
 
Total debt refinancing and other costs, net of tax
 
$
 (2)
 
$
 (1)
 
$
 (3)
 
$
 (76)
 

(1)
In August 2017, the company announced the closure of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama. The Birmingham plant is expected to cease production by the end of the second quarter of 2018, and the Longview and Chatsworth plants are expected to cease production by the end of the third quarter of 2018. Charges for the year ended 2017 were comprised of employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs.

(2)
In December 2016, the company announced the closure of its beverage packaging manufacturing facility in Reidsville, North Carolina, which ceased production during the second quarter of 2017. Charges in 2017 and 2016 were comprised of employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs.
 
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