Business Segment Information

6 Months Ended

Jun. 30, 2016

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.

Metal beverage packaging, Americas and Asia:  Consists of the metal beverage packaging, Americas, operations in the U.S., Canada, Mexico and Brazil, and the metal beverage packaging, Asia, operations in the People’s Republic of China (PRC) and Myanmar. 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.

Metal beverage packaging, Europe:  Consists of operations in several countries in Europe that manufacture and sell metal beverage containers.

Food and Aerosol packaging:   Consists of operations in the U.S., Europe, Canada, Mexico, Argentina and India that manufacture and sell steel food, aerosol, paint, general line and decorative specialty containers, as well as extruded aluminum aerosol containers and aluminum slugs.

Aerospace:  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 Guatemala, Panama, South Korea, 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.

Due to the timing of the Rexam acquisition, the newly acquired operations have been included in the corporate and other segment for the quarter ended June 30, 2016. During the third quarter, the company will evaluate both the existing and acquired operations to determine its internal reporting structure and the resulting effect on reportable segments.

Summary of Business by Segment

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2016		2015		2016		2015
Net sales
Metal beverage packaging, Americas & Asia	$	1,053	$	1,132	$	1,990	$	2,155
Metal beverage packaging, Europe		479		481		835		860
Food and aerosol packaging		298		332		583		640
Aerospace		193		230		373		445
Corporate and intercompany eliminations		7		(3)		4		(5)
Net sales		2,030		2,172	$	3,785	$	4,095
Net earnings
Metal beverage packaging, Americas & Asia	$	137	$	126	$	239	$	252
Business consolidation and other activities		(12)		—		(16)		(3)
Total metal beverage packaging, Americas & Asia		125		126		223		249
Metal beverage packaging, Europe		74		59		113		88
Business consolidation and other activities		(5)		(5)		(9)		(7)
Total metal beverage packaging, Europe		69		54		104		81
Food and aerosol packaging		33		29		53		59
Business consolidation and other activities		(3)		(1)		(17)		(1)
Total food and aerosol packaging		30		28		36		58
Aerospace		19		20		37		39
Business consolidation and other activities		—		—		—		1
Total aerospace		19		20		37		40
Segment earnings before interest and taxes		243		228		400		428
Undistributed corporate expenses and intercompany eliminations, net		(12)		(26)		(35)		(52)
Business consolidation and other activities		47		72		(198)		24
Total undistributed corporate expenses and
intercompany eliminations, net		35		46		(233)		(28)
Earnings before interest and taxes		278		274		167		400
Interest expense		(41)		(31)		(79)		(70)
Debt refinancing and other costs		(46)		(5)		(106)		(65)
Total interest expense		(87)		(36)		(185)		(135)
Tax (provision) benefit		146		(79)		229		(79)
Equity in results of affiliates, net of tax		1		1		(0)		2
Net earnings		338		160		211		188
Less net earnings attributable to noncontrolling interests		—		—		—		(7)
Net earnings attributable to Ball Corporation	$	338	$	160	$	211	$	181