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Financial Instruments and Risk Management | 6 Months Ended
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Jun. 30, 2025
Financial Instruments and Risk Management |
Financial Instruments and Risk Management | 20. Financial Instruments and Risk Management ​ Policies and Procedures ​ The company employs established risk management policies and procedures, which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates, net investments in foreign operations and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance that these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to offset any amounts owed with regard to open derivative positions. ​ Commodity Price Risk - The company manages commodity price risk in connection with market price fluctuations of aluminum through two different methods. First, the company enters into container sales contracts that include aluminum-based pricing terms which generally reflect the same price fluctuations under commercial purchase contracts for aluminum sheet. The terms include fixed, floating or pass-through aluminum component pricing. Second, the company uses certain derivative instruments, including option and forward contracts, as economic and cash flow hedges of commodity price risk where there are material differences between sales and purchase contracted pricing and volume. ​ Interest Rate Risk - The company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. To achieve these objectives, the company may use a variety of interest rate swaps, collars and options to manage its mix of floating and fixed-rate debt. ​ Currency Exchange Rate Risk - The company’s objective in managing exposure to currency fluctuations is to limit the exposure of cash flows and earnings from changes associated with currency exchange rate changes through the use of various derivative contracts. In addition, at times the company manages earnings translation volatility through the use of currency option strategies, and the change in the fair value of those options is recorded in the company’s net earnings. ​ Net Investments in Foreign Operations Risk – The company is exposed to changes in foreign currencies impacting its net investments held in foreign subsidiaries. The company’s objective in managing exposure to net investments in foreign operations is to limit the foreign exchange translation risk associated with its net investments in non-U.S. dollar foreign entities. The company uses fixed-for-fixed cross currency swaps and euro denominated debt designated as net investment hedges to achieve this objective. ​ The following table provides additional information related to the commercial risk management derivative instruments described above: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
($ in millions) | ​ | June 30, 2025
Commercial risk area | ​ | Commodity | ​ | Currency |  | Interest Rate |  | Net Investment
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Notional amount of contracts | ​ | $ | 1,586 | ​ | $ | 3,064 | ​ | $ | 600 | ​ | € | 1,050
Net gain (loss) included in AOCI, after-tax | ​ | ​ | (11) | ​ | ​ | (3) | ​ | ​ | 1 | ​ | ​ | (90)
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months | ​ | ​ | (11) | ​ | ​ | (3) | ​ | ​ | 2 | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Longest duration of forecasted hedge transactions in years | ​ | ​ | 2 | ​ | ​ | 2 | ​ | ​ | 2 | ​ | ​ | 4
​ In May 2025, Ball issued €850 million of 4.25% senior notes due in 2032 and designated the principal as a net investment hedge. During the three and six months ended June 30, 2025, the company recorded a net loss, after tax in accumulated other comprehensive earnings (loss) for this nonderivative financial instrument of $35 million. The net loss included in AOCI, after tax, as of June 30, 2025, was $35 million for this nonderivative financial instrument. ​ Common Stock Price Risk ​ The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to fair value using the company’s closing stock price at the end of the related reporting period. The company entered into total return swaps to reduce the company’s earnings exposure to these fair value fluctuations that will be outstanding through March 2026, and which have a combined notional value of 1.3 million shares. Based on the current number of shares in the program, each $1 change in the company’s stock price would have an insignificant impact on pretax earnings, net of the impact of related derivatives. ​ Fair Value Measurements ​ Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of June 30, 2025, and December 31, 2024, and presented those values in the tables below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | June 30, 2025
($ in millions) | Balance Sheet Location |  | Derivatives Designated as Hedging Instruments |  | Derivatives not Designated as Hedging Instruments |  | Total
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | ​ | $ | 28 | ​ | $ | — | ​ | $ | 28
Currency contracts | ​ | ​ | ​ | — | ​ | ​ | 24 | ​ | ​ | 24
Interest rate and other contracts | ​ | ​ | ​ | 3 | ​ | ​ | 2 | ​ | ​ | 5
Total current derivative contracts | Other current assets | ​ | $ | 31 | ​ | $ | 26 | ​ | $ | 57
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | ​ | $ | 2 | ​ | $ | — | ​ | $ | 2
Currency contracts | ​ | ​ | ​ | — | ​ | ​ | 1 | ​ | ​ | 1
Total noncurrent derivative contracts | Other noncurrent assets | ​ | $ | 2 | ​ | $ | 1 | ​ | $ | 3
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | ​ | $ | 36 | ​ | $ | 9 | ​ | $ | 45
Currency contracts | ​ | ​ | ​ | 48 | ​ | ​ | 54 | ​ | ​ | 102
Total current derivative contracts | Other current liabilities | ​ | $ | 84 | ​ | $ | 63 | ​ | $ | 147
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | ​ | $ | 1 | ​ | $ | — | ​ | $ | 1
Interest rate and other contracts | ​ | ​ | ​ | 2 | ​ | ​ | — | ​ | ​ | 2
Net investment hedge | ​ | ​ | ​ | 110 | ​ | ​ | — | ​ | ​ | 110
Total noncurrent derivative contracts | Other noncurrent liabilities | ​ | $ | 113 | ​ | $ | — | ​ | $ | 113
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | December 31, 2024
($ in millions) | Balance Sheet Location | ​ | Derivatives Designated as Hedging Instruments |  | Derivatives not Designated as Hedging Instruments |  | Total
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | ​ | $ | 26 | ​ | $ | — | ​ | $ | 26
Currency contracts | ​ | ​ | ​ | — | ​ | ​ | 36 | ​ | ​ | 36
Interest rate and other contracts | ​ | ​ | ​ | 4 | ​ | ​ | — | ​ | ​ | 4
Total current derivative contracts | Other current assets | ​ | $ | 30 | ​ | $ | 36 | ​ | $ | 66
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Currency contracts | ​ | ​ | $ | 51 | ​ | $ | — | ​ | $ | 51
Interest rate and other contracts | ​ | ​ | ​ | 6 | ​ | ​ | — | ​ | ​ | 6
Net investment hedge | ​ | ​ | ​ | 20 | ​ | ​ | — | ​ | ​ | 20
Total noncurrent derivative contracts | Other noncurrent assets | ​ | $ | 77 | ​ | $ | — | ​ | $ | 77
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | ​ | $ | 7 | ​ | $ | — | ​ | $ | 7
Currency contracts | ​ | ​ | ​ | — | ​ | ​ | 13 | ​ | ​ | 13
Total current derivative contracts | Other current liabilities | ​ | $ | 7 | ​ | $ | 13 | ​ | $ | 20
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | ​ | $ | 1 | ​ | $ | — | ​ | $ | 1
Other contracts | ​ | ​ | ​ | — | ​ | ​ | 12 | ​ | ​ | 12
Total noncurrent derivative contracts | Other noncurrent liabilities | ​ | $ | 1 | ​ | $ | 12 | ​ | $ | 13
​ The company uses closing spot and forward market prices as published by the London Metal Exchange, the Chicago Mercantile Exchange, Reuters and Bloomberg to determine the fair value of any outstanding aluminum, currency, energy, cross currency swaps and interest rate spot and forward contracts. Option contracts are valued using a Black-Scholes model with observable market inputs for aluminum, currency and interest rates. The company values each of its financial instruments either internally using a single valuation technique, from a reliable observable market source or from third-party software. The present value discounting factor is based on the comparable time period Secured Overnight Financing Rate (SOFR) or Euro London Inter-Bank Offered Rate (Euro LIBOR). Ball performs validations of the company’s internally derived fair values reported for the company’s financial instruments on a quarterly basis utilizing counterparty valuation statements. The company additionally evaluates counterparty creditworthiness and, as of June 30, 2025, has not identified any circumstances requiring the reported values of the company’s financial instruments be adjusted. ​ The following tables provide the effects of derivative instruments in the unaudited condensed consolidated statements of earnings: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Three Months Ended June 30,
​ | ​ | ​ | ​ | 2025 | ​ | 2024
($ in millions) |  | Location of Gain (Loss) Recognized in Earnings on Derivatives |  | Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | ​ | Gain (Loss) on Derivatives not Designated as Hedge Instruments |  | Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) |  | Gain (Loss) on Derivatives not Designated as Hedge Instruments
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts - manage exposure to customer pricing | ​ | Net sales | ​ | $ | 17 | ​ | $ | — | ​ | $ | (19) | ​ | $ | —
Commodity contracts - manage exposure to supplier pricing | ​ | Cost of sales | ​ | ​ | (1) | ​ | ​ | 6 | ​ | ​ | 4 | ​ | ​ | (9)
Interest rate contracts - manage exposure for outstanding debt | ​ | Interest expense | ​ | ​ | 3 | ​ | ​ | — | ​ | ​ | 3 | ​ | ​ | —
Currency contracts - manage currency exposure | ​ | Selling, general and administrative | ​ | ​ | (73) | ​ | ​ | (99) | ​ | ​ | 16 | ​ | ​ | 29
Equity contracts | ​ | Selling, general and administrative | ​ | ​ | — | ​ | ​ | 4 | ​ | ​ | — | ​ | ​ | (11)
Total | ​ | ​ | ​ | $ | (54) | ​ | $ | (89) | ​ | $ | 4 | ​ | $ | 9
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Six Months Ended June 30, | ​
​ | ​ | ​ | ​ | 2025 | ​ | 2024 | ​
($ in millions) |  | Location of Gain (Loss) Recognized in Earnings on Derivatives |  | Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) |  | Gain (Loss) on Derivatives not Designated as Hedge Instruments |  | Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) |  | Gain (Loss) on Derivatives not Designated as Hedge Instruments | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts - manage exposure to customer pricing | ​ | Net sales | ​ | $ | 12 | ​ | $ | — | ​ | $ | (6) | ​ | $ | — | ​
Commodity contracts - manage exposure to supplier pricing | ​ | Cost of sales | ​ | ​ | 2 | ​ | ​ | 6 | ​ | ​ | (10) | ​ | ​ | (6) | ​
Interest rate contracts - manage exposure for outstanding debt | ​ | Interest expense | ​ | ​ | 3 | ​ | ​ | — | ​ | ​ | 6 | ​ | ​ | — | ​
Currency contracts - manage currency exposure | ​ | Selling, general and administrative | ​ | ​ | (101) | ​ | ​ | (170) | ​ | ​ | 48 | ​ | ​ | 56 | ​
Equity contracts | ​ | Selling, general and administrative | ​ | ​ | — | ​ | ​ | (1) | ​ | ​ | — | ​ | ​ | 3 | ​
Total | ​ | ​ | ​ | $ | (84) | ​ | $ | (165) | ​ | $ | 38 | ​ | $ | 53 | ​
​ ​ The changes in accumulated other comprehensive earnings (loss) for derivatives designated as hedges were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30,
($ in millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Amounts reclassified into earnings: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | $ | (16) | ​ | $ | 15 | ​ | $ | (14) | ​ | $ | 16
Interest rate contracts | ​ | ​ | (3) | ​ | ​ | (3) | ​ | ​ | (3) | ​ | ​ | (6)
Currency exchange contracts | ​ | ​ | 73 | ​ | ​ | (16) | ​ | ​ | 101 | ​ | ​ | (48)
Change in fair value of hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity contracts | ​ | ​ | (19) | ​ | ​ | 9 | ​ | ​ | (19) | ​ | ​ | 10
Interest rate contracts | ​ | ​ | (2) | ​ | ​ | 4 | ​ | ​ | (6) | ​ | ​ | 16
Currency exchange contracts | ​ | ​ | (69) | ​ | ​ | 16 | ​ | ​ | (97) | ​ | ​ | 45
Net investment hedge | ​ | ​ | (84) | ​ | ​ | — | ​ | ​ | (106) | ​ | ​ | —
Currency and tax impacts | ​ | ​ | 9 | ​ | ​ | (6) | ​ | ​ | 8 | ​ | ​ | (9)
​ | ​ | $ | (111) | ​ | $ | 19 | ​ | $ | (136) | ​ | $ | 24
​

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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