Business Segment Information

3 Months Ended

Mar. 31, 2021

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, 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 March 31,
($ in millions)	2021		2020
Net sales
Beverage packaging, North and Central America	$	1,296	$	1,181
Beverage packaging, EMEA		796		669
Beverage packaging, South America		487		405
Aerospace		424		432
Reportable segment sales		3,003		2,687
Other		122		98
Net sales	$	3,125	$	2,785
Comparable operating earnings
Beverage packaging, North and Central America	$	140	$	146
Beverage packaging, EMEA		100		68
Beverage packaging, South America		93		63
Aerospace		35		40
Reportable segment comparable operating earnings		368		317
Reconciling items
Other (a)		(23)		(10)
Business consolidation and other activities		(7)		(115)
Amortization of acquired intangibles		(38)		(37)
Earnings before interest and taxes		300		155
Interest expense		(67)		(71)
Debt refinancing and other costs		—		(40)
Total interest expense		(67)		(111)
Earnings before taxes	$	233	$	44

(a) Includes undistributed corporate expenses, net, of $26 million and $14 million for the three months ended March 31, 2021 and 2020, respectively.

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