XML 22 R9.htm IDEA: XBRL DOCUMENT

Business Segment Information

6 Months Ended

Jun. 30, 2020

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. Effective January 1, 2020, the company implemented changes to its management and internal reporting structure for cost reduction and operational efficiency purposes. As a result of these changes, the company’s plants in Cairo, Egypt, and Manisa, Turkey, are now included in the beverage packaging, Europe, Middle East and Africa (beverage packaging, EMEA), segment. The company’s operations in India and Saudi Arabia are now combined with the former non-reportable beverage packaging, Asia Pacific, operating segment as a new non-reportable beverage packaging, other, operating segment. The company’s segment results and disclosures for the three and six months ended June 30, 2019, have been retrospectively adjusted to conform to the current year presentation.

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, EMEA: Consists of operations in numerous countries throughout Europe, including Russia, as well as Egypt and Turkey, that manufacture and sell metal beverage containers throughout those regions.

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

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 a non-reportable operating segment (beverage packaging, other) that manufactures and sells aluminum beverage containers in India, Saudi Arabia and throughout the Asia Pacific region; a non-reportable operating segment that manufactures and sells extruded aluminum aerosol containers and aluminum slugs (aerosol packaging); a non-reportable operating segment that manufactures and sells aluminum cups (aluminum cups); undistributed corporate expenses; intercompany eliminations and other business activities.

The accounting policies of the segments are the same as those used 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)	2020		2019		2020		2019

Net sales
Beverage packaging, North and Central America	$	1,267	$	1,286	$	2,448	$	2,417
Beverage packaging, EMEA		699		768		1,368		1,452
Beverage packaging, South America		329		377		734		818
Aerospace		438		379		870		707
Reportable segment sales		2,733		2,810		5,420		5,394
Other		68		207		166		408
Net sales	$	2,801	$	3,017	$	5,586	$	5,802

Comparable operating earnings
Beverage packaging, North and Central America	$	189	$	141	$	335	$	259
Beverage packaging, EMEA		63		98		131		172
Beverage packaging, South America		46		65		109		133
Aerospace		30		38		70		68
Reportable segment comparable operating earnings		328		342		645		632
Reconciling items
Other (a)		(1)		5		(11)		(10)
Business consolidation and other activities		(112)		—		(227)		(14)
Amortization of acquired Rexam intangibles		(37)		(40)		(74)		(80)
Earnings before interest and taxes		178		307		333		528
Interest expense		(67)		(81)		(138)		(158)
Debt refinancing and other costs		—		—		(40)		(4)
Total interest expense		(67)		(81)		(178)		(162)
Earnings before taxes	$	111	$	226	$	155	$	366

(a)	Includes undistributed corporate expenses, net, of $6 million and $15 million for the three months ended June 30, 2020 and 2019, respectively, and $20 million and $38 million for the six months ended June 30, 2020 and 2019, respectively.

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