Business Segment Information

12 Months Ended

Dec. 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 aluminum 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 aluminum beverage containers throughout those regions.

Beverage packaging, South America: Consists of operations in Brazil, Argentina, Paraguay and Chile that manufacture and sell aluminum 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 tables 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, recloseable aluminum bottles across multiple consumer categories and aluminum slugs (aerosol packaging) throughout North America, South America, Europe, and Asia; 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 consolidated financial statements, as discussed in Note 1. The company also has investments in operations in Guatemala, Panama, 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. During 2021, Ball sold its minority-owned investment in South Korea. In January 2022, Ball sold its remaining equity method investment in Ball Metalpack. Refer to Note 4 for additional details.

Major Customers

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

	2021		2020		2019
U.S. Government	13	%	14	%	13	%
Anheuser-Busch InBev and affiliates	12	%	13	%	12	%
Coca-Cola Bottlers' Sales & Services Company LLC and affiliates	10	%	9	%	9	%

Summary of Net Sales by Geographic Area (a)

($ in millions)	U.S.		Brazil		Other		Consolidated
2021	$	7,284	$	1,458	$	5,069	$	13,811
2020		6,317		1,295		4,169		11,781
2019		5,747		1,351		4,376		11,474

(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, 2021	$	4,024	$	1,035	$	857	$	2,509	$	8,425
As of December 31, 2020		2,819		839		766		2,786		7,210

(a) Long-lived assets exclude goodwill and intangible assets.

Summary of Business by Segment

	Years Ended December 31,
($ in millions)	2021		2020		2019
Net sales
Beverage packaging, North and Central America	$	5,856	$	5,076	$	4,758
Beverage packaging, EMEA		3,509		2,945		2,857
Beverage packaging, South America		2,016		1,695		1,670
Aerospace		1,911		1,741		1,479
Reportable segment sales		13,292		11,457		10,764
Other		519		324		710
Net sales	$	13,811	$	11,781	$	11,474
Comparable operating earnings
Beverage packaging, North and Central America	$	681	$	683	$	555
Beverage packaging, EMEA		452		354		351
Beverage packaging, South America		348		280		288
Aerospace		169		153		140
Reportable segment comparable operating earnings		1,650		1,470		1,334
Reconciling items
Other (a)		(65)		(55)		(3)
Business consolidation and other activities		(142)		(262)		(244)
Amortization of acquired intangibles		(152)		(150)		(155)
Earnings before interest and taxes		1,291		1,003		932
Interest expense		(270)		(275)		(317)
Debt refinancing and other costs		(13)		(41)		(7)
Total interest expense		(283)		(316)		(324)
Earnings before taxes	$	1,008	$	687	$	608

(a) Includes undistributed corporate expenses, net, of $72 million, $58 million and $50 million for the years ended December 2021, 2020 and 2019, respectively.

	Years Ended December 31,
($ in millions)	2021		2020		2019
Depreciation and amortization (a)
Beverage packaging, North and Central America	$	200	$	184	$	190
Beverage packaging, EMEA		223		230		246
Beverage packaging, South America		141		142		136
Aerospace		65		53		43
Reportable segment depreciation and amortization		629		609		615
Other		71		59		63
Depreciation and amortization	$	700	$	668	$	678
Capital expenditures
Beverage packaging, North and Central America	$	697	$	367	$	139
Beverage packaging, EMEA		305		262		147
Beverage packaging, South America		334		159		150
Aerospace		198		174		96
Reportable segment capital expenditures		1,534		962		532
Other		192		151		66
Capital expenditures	$	1,726	$	1,113	$	598

(a) Includes amortization of acquired Rexam intangibles.

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