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SEC Filings

8-K
BALL CORP filed this Form 8-K on 02/07/2018
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Notes to the Condensed Financial Statements (Fourth Quarter 2017)

2.
Non-Comparable Items (continued)

(3)
During the years ended 2017 and 2016, the company recorded charges for professional services and other costs associated with the June 30, 2016, acquisition of Rexam.

Also during the year ended 2016, the company recorded losses related to derivative financial instruments to reduce its currency exchange rate exposure associated with the British pound denominated cash portion of the Rexam acquisition purchase price and entered into derivative financial instruments to mitigate its exposure to interest rate changes associated with anticipated debt issuances in connection with the cash portion of the Rexam acquisition purchase price.

(4)
During 2016, the company recorded cost of sales associated with the step-up in value of inventory from the Rexam acquisition.

(5)
During 2017 and 2016, the company recorded amortization expense for customer relationships and other intangible assets identified as part of the Rexam acquisition.

(6)
In the second quarter of 2017, the company finalized the allocation of the purchase price for the Rexam acquisition and updated the fair values and useful lives for the acquired Rexam intangible and fixed assets. Catch-up depreciation and amortization expense were recorded in 2017, related to the last six months of 2016.

(7)
In March 2017, the company announced its intent to close its beverage packaging manufacturing facility in Recklinghausen, Germany, which ceased production in July 2017. Charges recorded in 2017 were comprised of employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs.

(8)
During the first quarter of 2017, the company sold its food and aerosol packaging paint and general line can plant in Hubbard, Ohio, and recognized a gain on the sale.

(9)
In October 2016, the company sold its specialty tin manufacturing facility in Baltimore, Maryland, which resulted in a gain on sale.

(10)
During the fourth quarter of 2016, the company rationalized certain manufacturing equipment to align production capacity with its customer requirements. The charge consisted of accelerated depreciation of the rationalized equipment and write-offs of costs associated with relocated assets.

(11)
During the second quarter of 2016, the company announced the closure of its food and aerosol packaging flat sheet production and end manufacturing facility in Weirton, West Virginia, which ceased production during the first quarter of 2017. Charges in 2017 and 2016 were comprised of employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and disposal costs.

(12)
During the third quarter of 2017, the company completed the purchase of non-participating group annuity contracts to settle a portion of the projected pension benefit obligations in certain Ball U.S. defined benefit pension plans. This triggered settlement accounting. The company recognized a settlement loss which primarily represented a pro rata portion of the aggregate unamortized actuarial loss in these pension plans.

(13)
During the year ended 2017, the company recorded adjustments to the estimated amount of claims covered by the indemnifications for certain tax matters provided to the buyer in the sale of the Divestment Business.

(14)
During 2017 and 2016, the company incurred charges for long-term incentive and other compensation arrangements associated with the Rexam acquisition and integration.

(15)
The sale of the Divestment Business was completed immediately after the Rexam acquisition on June 30, 2016, for $3.42 billion, subject to customary closing adjustments. During the fourth quarter of 2017, the customary closing adjustments, as well as the arrangements relating to guaranteed minimum volume of sales for the Divestment Business related to 2017, were finalized. As a result, during the fourth quarter, the company recorded additional pre-tax income from the sale of the Divestment Business.

(16)
During 2016, the company recorded foreign currency exchange gains and losses from the revaluation of foreign currency denominated restricted cash, and intercompany loans related to the cash component of the Rexam acquisition purchase price and the revaluation of euro-denominated debt.


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