Business Segment Information

9 Months Ended

Oct. 02, 2011

Business Segment Information

Business Segment Information

3. Business Segment Information

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

Metal beverage packaging, Americas and Asia:  Consists of the metal beverage packaging, Americas, operations in the U.S., Canada and Brazil (see Note 4), and the metal beverage packaging, Asia, operations in the People’s Republic of China (PRC). The Americas and Asia segments have been aggregated based on similar economic and qualitative characteristics. The operations in this reporting segment manufacture and sell metal beverage containers, and also manufacture and sell non-beverage plastic containers in the PRC.

Metal beverage packaging, Europe:  Consists of operations in several countries in Europe, which manufacture and sell metal beverage containers, extruded aluminum aerosol containers and aluminum slugs.

Metal food and household products packaging, Americas:  Consists of operations in the U.S. and Argentina, which manufacture and sell metal food, aerosol, paint and general line containers, as well as decorative specialty containers and aluminum slugs.

Aerospace and technologies:  Consists of the manufacture and sale of aerospace and other related products and the providing of services used in the defense, civil space and commercial space industries.

The accounting policies of the segments are the same as those in the unaudited condensed consolidated financial statements. A discussion of the company’s critical and significant accounting policies can be found in Ball’s annual report. The company also has investments in companies in the U.S. and the PRC, which are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings. The company’s investment in a Brazilian joint venture was previously accounted for using the equity method of accounting. However, during August 2010, Ball acquired an additional economic interest in the joint venture partner and its results are now consolidated.

Summary of Business by Segment

	Three months ended						Nine months ended
	October 2,			September 26,			October 2,			September 26,
($ in millions)	2011			2010			2011			2010
Net Sales
Metal beverage packaging, Americas & Asia	$	1,125.4		$	1,004.7		$	3,321.8		$	2,815.1
Metal beverage packaging, Europe	515.7			443.7			1,566.6			1,290.5
Metal food & household products packaging, Americas	413.2			420.1			1,103.6			1,017.5
Aerospace & technologies	208.4			167.9			599.5			513.1
Corporate and intercompany eliminations	(4.4		)	(1.4		)	(12.3		)	(1.4		)
Net sales	$	2,258.3		$	2,035.0		$	6,579.2		$	5,634.8
Net Earnings
Metal beverage packaging, Americas & Asia	$	120.1		$	112.8		$	361.8		$	301.3
Business consolidation and other activities	(1.4		)	(0.9		)	(14.8		)	0.4
Total metal beverage packaging, Americas & Asia	118.7			111.9			347.0			301.7
Metal beverage packaging, Europe	64.9			63.7			202.7			171.2
Business consolidation and other activities	—			—			(2.9		)	—
Total metal beverage packaging, Europe	64.9			63.7			199.8			171.2
Metal food & household products packaging, Americas	39.5			49.4			120.6			104.5
Business consolidation and other activities	(1.4		)	13.2			(1.4		)	13.2
Total metal food & household products packaging, Americas	38.1			62.6			119.2			117.7
Aerospace & technologies	21.2			18.4			61.6			50.5
Segment earnings before interest and taxes	242.9			256.6			727.6			641.1
Undistributed corporate expenses and intercompany eliminations, net	(13.8		)	(22.8		)	(50.3		)	(49.5		)
Business consolidation and other activities	(0.5		)	(0.7		)	(0.6		)	(3.8		)
Total undistributed corporate expenses, net	(14.3		)	(23.5		)	(50.9		)	(53.3		)
Earnings before interest and taxes	228.6			233.1			676.7			587.8
Interest expense	(43.0		)	(36.2		)	(134.7		)	(114.8		)
Tax provision	(47.6		)	(60.5		)	(160.2		)	(142.2		)
Equity in results of affiliates, net of tax	0.8			85.8			1.9			118.5
Net earnings from continuing operations	138.8			222.2			383.7			449.3
Discontinued operations, net of tax	(1.3		)	5.3			(2.9		)	(73.4		)
Net earnings from continuing operations	137.5			227.5			380.8			375.9
Less net earnings attributable to noncontrolling interests	(5.4		)	—			(14.3		)	(0.1		)
Net earnings attributable to Ball Corporation	$	132.1		$	227.5		$	366.5		$	375.8

	October 2,		December 31,
($ in millions)	2011		2010
Total Assets
Metal beverage packaging, Americas & Asia	$	3,183.8	$	2,965.8
Metal beverage packaging, Europe	2,608.2		2,210.6
Metal food & household products packaging, Americas	1,230.7		1,184.3
Aerospace & technologies	285.0		280.9
Segment assets	7,307.7		6,641.6
Corporate assets, net of eliminations	230.7		286.1
Total assets	$	7,538.4	$	6,927.7