Business Segment Information

9 Months Ended

Sep. 30, 2013

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 discussed below. On January 1, 2013, the company implemented changes to its management and internal reporting structure. As a result, the European extruded aluminum business, which was previously included in the metal beverage packaging, Europe, segment, is now included in the metal food and household products packaging segment. The segment results and disclosures for the three and nine months ended September 30, 2012, and the financial position at December 31, 2012, have been retrospectively adjusted to conform to the current year presentation.

Metal beverage packaging, Americas and Asia:  Consists of the metal beverage packaging, Americas, operations in the U.S., Canada and Brazil, 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.

Metal food and household products packaging:  Consists of operations in the U.S., Europe, Canada, Mexico and Argentina, which manufacture and sell steel food, aerosol, paint, general line and decorative specialty containers, as well as extruded aluminum beverage and aerosol 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 Vietnam, which are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions)	2013			2012			2013			2012
Net sales
Metal beverage packaging, Americas & Asia	$	1,109.2		$	1,169.6		$	3,190.7		$	3,426.9
Metal beverage packaging, Europe	488.9			450.8			1,400.5			1,377.0
Metal food & household products packaging	463.6			445.8			1,213.4			1,196.7
Aerospace & technologies	217.5			219.9			675.0			631.8
Corporate and intercompany eliminations	(1.3		)	(3.6		)	(8.3		)	(10.9		)
Net sales	$	2,277.9		$	2,282.5		$	6,471.3		$	6,621.5
Net earnings
Metal beverage packaging, Americas & Asia	$	134.8		$	142.2		$	364.5		$	384.5
Business consolidation and other activities	(14.1		)	(31.5		)	(26.6		)	(32.9		)
Total metal beverage packaging, Americas & Asia	120.7			110.7			337.9			351.6
Metal beverage packaging, Europe	60.5			54.3			143.2			152.7
Business consolidation and other activities	(1.7		)	(3.5		)	(4.6		)	(6.2		)
Total metal beverage packaging, Europe	58.8			50.8			138.6			146.5
Metal food & household products packaging	58.4			50.1			140.6			131.0
Business consolidation and other activities	(28.9		)	—			(57.4		)	—
Total metal food & household products packaging	29.5			50.1			83.2			131.0
Aerospace & technologies	18.0			22.5			55.0			62.4
Business consolidation and other activities	—			—			(0.2		)	—
Total aerospace & technologies	18.0			22.5			54.8			62.4
Segment earnings before interest and taxes	227.0			234.1			614.5			691.5
Undistributed and corporate expenses and intercompany eliminations, net	(16.3		)	(13.7		)	(56.1		)	(48.4		)
Business consolidation and other activities	0.9			(1.8		)	(0.3		)	(4.9		)
Total undistributed and corporate expenses and intercompany eliminations, net	(15.4		)	(15.5		)	(56.4		)	(53.3		)
Earnings before interest and taxes	211.6			218.6			558.1			638.2
Interest expense	(45.5		)	(44.2		)	(138.0		)	(134.2		)
Debt refinancing costs	(1.3		)	—			(28.0		)	(15.1		)
Total interest expense	(46.8		)	(44.2		)	(166.0		)	(149.3		)
Tax provision	(44.1		)	(51.7		)	(93.0		)	(129.7		)
Equity in results of affiliates, net of tax	0.9			(0.8		)	0.9			(1.0		)
Net earnings from continuing operations	121.6			121.9			300.0			358.2
Discontinued operations, net of tax	0.3			(2.2		)	0.4			(2.9		)
Net earnings	121.9			119.7			300.4			355.3
Less net earnings attributable to noncontrolling interests	(6.7		)	(4.6		)	(18.1		)	(12.4		)
Net earnings attibutable to Ball Corporation	$	115.2		$	115.1		$	282.3		$	342.9

	September 30,		December 31,
($ in millions)	2013		2012
Total Assets
Metal beverage packaging, Americas & Asia	$	3,307.6	$	3,227.5
Metal beverage packaging, Europe	2,325.9		2,299.8
Metal food & household products packaging	1,635.3		1,568.9
Aerospace & technologies	346.6		332.8
Segment assets	7,615.4		7,429.0
Corporate assets and intercompany eliminations	93.8		78.1
Total assets	$	7,709.2	$	7,507.1