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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)

3.
Non-U.S. GAAP Measures (continued)

A summary of Comparable EBITDA and Net Debt is as follows:

   
Year Ended
($ in millions, except ratios)
 
December 31, 2017
       
Net earnings attributable to Ball Corporation
 
$
 399
Add: Net earnings attributable to noncontrolling interests
   
 6
Net earnings
   
 405
Less: Equity in results of affiliates, net of tax
   
 (31)
Add: Tax provision (benefit)
   
 140
Net earnings before taxes
   
 514
Add: Total interest expense
   
 288
Earnings before interest and taxes (EBIT)
   
 802
Add: Business consolidation and other activities
   
 221
Add: Amortization of acquired Rexam intangibles
   
 162
Add: Catch-up depreciation and amortization for 2016 from finalization of Rexam valuation
   
 35
Comparable Operating Earnings
   
 1,220
Add: Depreciation and amortization
   
 729
Less: Amortization of acquired Rexam intangibles
   
 (162)
Less: Catch-up depreciation and amortization for 2016 from finalization of Rexam valuation
   
 (35)
Comparable EBITDA
 
$
 1,752
       
Total debt at December 31, 2017
 
$
 6,971
Less: Cash and cash equivalents
   
 (448)
Net Debt (a)
 
$
 6,523
       
Net Debt/Comparable EBITDA
   
3.7x

(a)
Net debt is total debt less cash and cash equivalents, which are derived directly from the company's financial statements.

Ball management uses net debt to comparable EBITDA as a metric to monitor the credit quality of Ball Corporation. Business consolidation and other activities are separated to evaluate the performance of the company's operations. The above is presented on a non-U.S. GAAP basis.

Free Cash Flow – Management internally uses a free cash flow measure to: (1) evaluate the company's liquidity, (2) evaluate strategic investments, (3) plan stock buyback and dividend levels and (4) evaluate the company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

Free cash flow is typically derived directly from the company's cash flow statements and is defined as cash flows from operating activities less capital expenditures; however, it may be adjusted for items that affect comparability between periods. Based on the company's definition, free cash flow for 2017 was:

 
Total cash provided by operating activities
 
$
 1,478
 
Less: Capital expenditures
   
 (556)
 
Free cash flow
 
$
 922






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