Business Context and Reporting Period
Company: Ball Corporation
Filing Type: Form 8-K (Current Report)
Date of Earliest Event: December 23, 2005
Reporting Period: The filing reports on actions taken by the Human Resources Committee of the Board of Directors on December 23, 2005, regarding the adoption of three deferred compensation plans effective January 1, 2005.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is a legal disclosure regarding the adoption of employee and director compensation plans.
Material Changes
The material change reported is the formal adoption and approval of three new deferred compensation plans to ensure compliance with Internal Revenue Code Section 409A and to utilize transition opportunities from Notice 2005-1:
- Ball Corporation 2005 Deferred Compensation Plan: For eligible employees to defer salary, bonus, or other cash compensation.
- Ball Corporation 2005 Deferred Compensation Company Stock Plan: For eligible employees and directors, with account values based on the Company's common stock.
- Ball Corporation 2005 Deferred Compensation Plan for Directors: For non-management directors to defer cash retainers, fees, and other compensation.
Guidance, Outlook, and Risks
Management Commentary: The plans were adopted to provide participants with opportunities to defer compensation in compliance with tax regulations and to take advantage of specific transition opportunities. The filing notes that there is no real or beneficial ownership of securities pursuant to investment options within these plans; conversions are deemed based on purchase prices at the close of business on the investment date.
Distribution Terms: Participants may elect distributions in a lump sum or in annual installments ranging from two to 15 years, or a combination thereof.
Risks and Contingencies: The filing does not disclose specific financial risks or contingencies beyond the regulatory compliance context of Section 409A.
Important Facts for Investors to Verify
- Review the full text of the attached exhibits (10.1, 10.2, and 10.3) for complete plan provisions, as the summary in the filing is not exhaustive.
- Verify the specific eligibility criteria for employees and directors under the new plans.
- Confirm the impact of these deferred compensation plans on the company's future cash flow obligations and pension liabilities in subsequent financial reports.
- Note that the filing text does not provide specific dollar amounts for potential liabilities or contributions under these plans.