3. Business Segment Information

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 and aerosol 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 Africa, Middle East and Asia (AMEA) and Asia Pacific 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:


	2017		2016		2015

Anheuser-Busch InBev and subsidiaries	14	%	7	%	10	%
Coca-Cola Bottlers' Sales & Services Company LLC	11	%	9	%	11	%
U.S. Government	9	%	9	%	10	%
Molson Coors Brewing Company and subsidiaries	7	%	9	%	11	%

Summary of Net Sales by Geographic Area (a)


($ in millions)	U.S.		Brazil		Other		Consolidated

2017	$	5,496	$	1,427	$	4,060	$	10,983
2016		4,929		904		3,228		9,061
2015		4,738		591		2,668		7,997

(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, 2017	$	1,852	$	876	$	659	$	2,629	$	6,016
As of December 31, 2016		2,097		885		182		2,327		5,491

(a)

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

Summary of Business by Segment


	Years Ended December 31,
($ in millions)	2017		2016		2015

Net sales
Beverage packaging, North and Central America	$	4,178	$	3,612	$	3,202
Beverage packaging, South America		1,692		1,014		591
Beverage packaging, Europe		2,360		1,915		1,653
Food and aerosol packaging		1,138		1,171		1,297
Aerospace		991		818		810
Reportable segment sales		10,359		8,530		7,553
Other		624		531		444
Net sales	$	10,983	$	9,061	$	7,997

Comparable operating earnings
Beverage packaging, North and Central America	$	533	$	469	$	402
Beverage packaging, South America		333		185		80
Beverage packaging, Europe		233		217		192
Food and aerosol packaging		102		109		108
Aerospace		98		88		82
Reportable segment comparable operating earnings		1,299		1,068		864
Reconciling items
Other (a)		(79)		(92)		(63)
Business consolidation and other activities		(221)		(337)		(195)
Amortization of acquired Rexam intangibles		(162)		(65)		—
Catch-up depreciation and amortization for 2016 from finalization of Rexam valuation		(35)		—		—
Cost of sales associated with Rexam inventory step-up		—		(84)		—
Egyptian pound devaluation		—		(27)		—
Earnings before interest and taxes		802		463		606
Interest expense		(285)		(229)		(143)
Debt refinancing and other costs		(3)		(109)		(117)
Total interest expense		(288)		(338)		(260)
Earnings before taxes		514		125		346
Tax (provision) benefit		(165)		126		(47)
Equity in results of affiliates, net of tax		31		15		4
Net earnings		380		266		303
Net earnings attributable to noncontrolling interests		(6)		(3)		(22)
Net earnings attributable to Ball Corporation	$	374	$	263	$	281

(a)

Includes undistributed corporate expenses, net, of $128 million, $110 million and $93 million for the years ended December 2017, 2016 and 2015, respectively.


	Years Ended December 31,
($ in millions)	2017		2016		2015

Depreciation and amortization (a)
Beverage packaging, North and Central America	$	179	$	117	$	73
Beverage packaging, South America		144		78		41
Beverage packaging, Europe		254		121		60
Food and aerosol packaging		56		57		59
Aerospace		31		30		27
Reportable segment depreciation and amortization		664		403		260
Other		65		50		26
Depreciation and amortization	$	729	$	453	$	286

Capital expenditures
Beverage packaging, North and Central America	$	283	$	234	$	250
Beverage packaging, South America		36		33		25
Beverage packaging, Europe		81		126		122
Food and aerosol packaging		50		80		61
Aerospace		70		41		28
Reportable segment capital expenditures		520		514		486
Other		36		92		42
Capital expenditures	$	556	$	606	$	528