Business Segment Information

12 Months Ended

Dec. 31, 2022

Business Segment Information

Business Segment Information

3. Business Segment Information

Ball’s operations are organized and reviewed by management along its product lines and geographical areas and presented in the four reportable segments outlined below.

Beverage packaging, North and Central America: Consists of operations in the U.S., Canada and Mexico that manufacture and sell aluminum beverage containers throughout those countries.

Beverage packaging, EMEA: Consists of operations in numerous countries throughout Europe, as well as Egypt and Turkey, that manufacture and sell aluminum beverage containers throughout those countries. Ball sold its former operations located in Russia during the third quarter of 2022. See Note 4 for further details. Ball’s operations and results of its former Russian aluminum packaging business are included in the results of the beverage packaging, EMEA, business through the date of the disposal in the third quarter of 2022.

Beverage packaging, South America: Consists of operations in Brazil, Argentina, Paraguay and Chile that manufacture and sell aluminum beverage containers throughout most of South America.

Aerospace: Consists of operations that manufacture and sell aerospace and other related products and provide services used in the defense, civil space and commercial space industries.

As presented in the tables below, Other consists of a non-reportable operating segment (beverage packaging, other) that manufactures and sells aluminum beverage containers in India, Saudi Arabia and throughout the Asia Pacific region; a non-reportable operating segment that manufactures and sells extruded aluminum aerosol containers and recloseable aluminum bottles across multiple consumer categories as well as aluminum slugs (aerosol packaging) throughout North America, South America, Europe, and Asia; a non-reportable operating segment that manufactures and sells aluminum cups (aluminum cups); undistributed corporate expenses; and intercompany eliminations and other business activities.

The accounting policies of the segments are the same as those used in the consolidated financial statements, as discussed in Note 1. The company also has investments in operations in Guatemala, Panama, the U.S. and Vietnam that are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings. In 2021, Ball sold its minority-owned investment in South Korea. In the first quarter of 2022, Ball sold its remaining equity method investment in Ball Metalpack. Refer to Note 4 for additional details on both transactions.

Major Customers

Net sales to major customers, as a percentage of consolidated net sales, were as follows:

	2022		2021		2020
Anheuser-Busch InBev and affiliates	13	%	12	%	13	%
U.S. Government	12	%	13	%	14	%
Coca-Cola Bottlers' Sales & Services Company LLC and affiliates	11	%	10	%	9	%

Summary of Net Sales by Geographic Area (a)

($ in millions)	U.S.		Brazil		Other		Consolidated
2022	$	8,487	$	1,450	$	5,412	$	15,349
2021		7,284		1,458		5,069		13,811
2020		6,317		1,295		4,169		11,781

(a) Revenue is attributed based on origin of sale and includes intercompany eliminations.

Summary of Net Long-Lived Assets by Geographic Area (a)

($ in millions)	U.S.		Brazil		U.K.		Other		Consolidated
As of December 31, 2022	$	4,316	$	1,193	$	729	$	2,530	$	8,768
As of December 31, 2021		4,024		1,035		857		2,509		8,425

(a) Long-lived assets exclude goodwill and intangible assets.

Summary of Business by Segment

	Years Ended December 31,
($ in millions)	2022		2021		2020
Net sales
Beverage packaging, North and Central America	$	6,696	$	5,856	$	5,076
Beverage packaging, EMEA		3,854		3,509		2,945
Beverage packaging, South America		2,108		2,016		1,695
Aerospace		1,977		1,911		1,741
Reportable segment sales		14,635		13,292		11,457
Other		714		519		324
Net sales	$	15,349	$	13,811	$	11,781
Comparable operating earnings
Beverage packaging, North and Central America	$	642	$	681	$	683
Beverage packaging, EMEA		358		452		354
Beverage packaging, South America		275		348		280
Aerospace		170		169		153
Reportable segment comparable operating earnings		1,445		1,650		1,470
Reconciling items
Other (a)		(25)		(65)		(55)
Business consolidation and other activities		(71)		(142)		(262)
Amortization of acquired intangibles		(135)		(152)		(150)
Earnings before interest and taxes		1,214		1,291		1,003
Interest expense		(312)		(270)		(275)
Debt refinancing and other costs		(18)		(13)		(41)
Total interest expense		(330)		(283)		(316)
Earnings before taxes	$	884	$	1,008	$	687

(a) Includes undistributed corporate expenses, net, of $82 million, $72 million and $58 million for the years ended December 2022, 2021 and 2020, respectively.

	Years Ended December 31,
($ in millions)	2022		2021		2020
Depreciation and amortization (a)
Beverage packaging, North and Central America	$	219	$	200	$	184
Beverage packaging, EMEA		185		223		230
Beverage packaging, South America		143		141		142
Aerospace		78		65		53
Reportable segment depreciation and amortization		625		629		609
Other		47		71		59
Depreciation and amortization	$	672	$	700	$	668
Capital expenditures
Beverage packaging, North and Central America	$	621	$	697	$	367
Beverage packaging, EMEA		458		305		262
Beverage packaging, South America		267		334		159
Aerospace		142		198		174
Reportable segment capital expenditures		1,488		1,534		962
Other		163		192		151
Capital expenditures	$	1,651	$	1,726	$	1,113

(a) Includes amortization of acquired Rexam intangibles.

The company does not disclose total assets by segment as it is not provided to the chief operating decision maker.