Business Segment Information

12 Months Ended

Dec. 31, 2016

Business Segment Information

Business Segment Information

3.  Business Segment Information

During the third quarter of 2016, Ball made certain segment realignments as a result of the Rexam acquisition and sale of Ball’s existing beverage packaging businesses and select beverage can assets of Rexam (the Divestment Business) to align with how Ball now manages its businesses. Ball has retrospectively adjusted prior period amounts to conform to the current segment presentation. Ball’s operations are organized and reviewed by management along its product lines and geographical areas and presented in the five reportable segments outlined below:

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

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

Beverage packaging, Europe:  Consists of operations in numerous countries in Europe, including Russia, 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 and general line containers, as well as extruded aluminum aerosol containers and aluminum slugs.

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

Other consists of non-reportable segments in Asia Pacific, AMEA that manufacture and sell metal beverage containers; undistributed corporate expenses; intercompany eliminations; and other business activities.

The accounting policies of the segments are the same as those in the consolidated financial statements and are discussed in Note 1. The company also has investments in operations in Guatemala, Panama, South Korea, 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.

Major Customers

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

	2016		2015		2014
Coca-Cola Bottlers' Sales & Services Company LLC	9	%	11	%	11	%
Molson Coors Brewing Company and subsidiaries	9	%	11	%	11	%
U.S. Government	9	%	10	%	10	%
Anheuser-Busch InBev and subsidiaries	7	%	10	%	10	%

Summary of Net Sales by Geographic Area (a)

($ in millions)	U.S.		Foreign		Consolidated
2016	$	4,929	$	4,132	$	9,061
2015		4,738		3,259		7,997
2014		5,091		3,479		8,570

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

($ in millions)	U.S.		Brazil		Other		Consolidated
2016	$	2,097	$	885	$	2,509	$	5,491
2015		1,211		463		1,313		2,987

(a) Includes intercompany eliminations.

(b) Long-lived assets exclude goodwill, intangible assets and noncurrent restricted cash.

Summary of Business by Segment

	Years Ended December 31,
($ in millions)	2016		2015		2014
Net sales
Beverage packaging, North and Central America	$	3,612	$	3,202	$	3,187
Beverage packaging, South America		1,014		591		588
Beverage packaging, Europe		1,915		1,653		1,896
Food and aerosol packaging		1,171		1,297		1,504
Aerospace		818		810		935
Reportable segment sales		8,530		7,553		8,110
Other		531		444		460
Net sales	$	9,061	$	7,997	$	8,570
Comparable operating earnings
Beverage packaging, North and Central America	$	469	$	402	$	388
Beverage packaging, South America		185		80		95
Beverage packaging, Europe		217		192		223
Food and aerosol packaging		109		108		154
Aerospace		88		82		94
Reportable segment comparable operating earnings		1,068		864		954
Reconciling items
Other (a)		(92)		(63)		(34)
Business consolidation and other activities		(337)		(195)		(81)
Amortization of acquired Rexam intangibles		(65)		—		—
Cost of sales associated with Rexam inventory step-up		(84)		—		—
Egyptian pound devaluation		(27)		—		—
Earnings before interest and taxes		463		606		839
Interest expense		(229)		(143)		(160)
Debt refinancing and other costs		(109)		(117)		(33)
Total interest expense		(338)		(260)		(193)
Earnings before taxes		125		346		646
Tax (provision) benefit		126		(47)		(150)
Equity in results of affiliates, net of tax		15		4		2
Net earnings		266		303		498
Less net earnings attributable to noncontrolling interests		(3)		(22)		(28)
Net earnings attributable to Ball Corporation	$	263	$	281	$	470

(a) Includes undistributed corporate expenses, net, of $110 million, $93 million and $86 million for the years ended December 2016, 2015 and 2014, respectively.

	Years Ended December 31,
($ in millions)	2016		2015		2014
Depreciation and Amortization
Beverage packaging, North and Central America	$	117	$	73	$	72
Beverage packaging, South America		78		41		37
Beverage packaging, Europe		121		60		63
Food and aerosol packaging		57		59		57
Aerospace		30		27		26
Reportable segment depreciation and amortization		403		260		255
Other		50		26		26
Depreciation and amortization	$	453	$	286	$	281
Capital Expenditures
Beverage packaging, North and Central America	$	234	$	250	$	101
Beverage packaging, South America		33		25		23
Beverage packaging, Europe		126		122		109
Food and aerosol packaging		80		61		82
Aerospace		41		28		30
Reportable segment capital expenditures		514		486		345
Other		92		42		46
Capital expenditures	$	606	$	528	$	391