Business Segment Information

6 Months Ended

Jun. 30, 2019

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 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 throughout those countries.

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

Beverage packaging, Europe: Consists of operations in numerous countries in Europe, including Russia, that manufacture and sell metal beverage containers throughout most of Europe.

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

As presented in the table below, Other consists of non-reportable segments located in Africa, Middle East and Asia (beverage packaging, AMEA) and Asia Pacific (beverage packaging, Asia Pacific) that manufacture and sell metal beverage containers; a non-reportable segment that manufactures and sells aerosol containers, extruded aluminum aerosol containers and aluminum slugs (aerosol packaging); undistributed corporate expenses; intercompany eliminations and other business activities.

The accounting policies of the segments are the same as those in the company’s consolidated financial statements as 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.

Summary of Business by Segment

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Net sales
Beverage packaging, North and Central America	$	1,286	$	1,241	$	2,417	$	2,276
Beverage packaging, South America		377		379		818		838
Beverage packaging, Europe		715		703		1,353		1,312
Aerospace		379		290		707		554
Reportable segment sales		2,757		2,613		5,295		4,980
Other		260		488		507		906
Net sales	$	3,017	$	3,101	$	5,802	$	5,886
Comparable operating earnings
Beverage packaging, North and Central America	$	141	$	157	$	259	$	270
Beverage packaging, South America		65		66		133		164
Beverage packaging, Europe		87		75		151		135
Aerospace		38		24		68		49
Reportable segment comparable operating earnings		331		322		611		618
Reconciling items
Other (a)		16		30		11		34
Business consolidation and other activities		—		(69)		(14)		(99)
Amortization of acquired Rexam intangibles		(40)		(40)		(80)		(84)
Earnings before interest and taxes		307		243		528		469
Interest expense		(81)		(77)		(158)		(150)
Debt refinancing and other costs		—		—		(4)		(1)
Total interest expense		(81)		(77)		(162)		(151)
Earnings before taxes	$	226	$	166	$	366	$	318

(a) Includes undistributed corporate expenses, net, of $16 million and $21 million for the three months ended June 30, 2019 and 2018, respectively, and $39 million and $43 million for the six months ended June 30, 2019 and 2018, respectively.

The company does not disclose total assets by segment as it is not provided to the chief operating decision maker.