Business Segment Information

6 Months Ended

Jun. 30, 2023

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, as well as Egypt and Turkey, that manufacture and sell aluminum beverage containers throughout those countries. Ball sold its former operations located in Russia during the third quarter of 2022. See Note 4 for further details. Ball’s operations and results of its former Russian aluminum beverage packaging business are included in the results of the beverage packaging, EMEA, business through the date of the disposal in the third quarter of 2022.

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 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 recloseable aluminum bottles across multiple consumer categories as well as 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; and 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. In the first quarter of 2022, Ball sold its remaining equity method investment in Ball Metalpack. Refer to Note 4 for additional details.

Summary of Business by Segment

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2023		2022		2023		2022
Net sales
Beverage packaging, North and Central America	$	1,537	$	1,775	$	3,041	$	3,384
Beverage packaging, EMEA		920		1,133		1,754		2,075
Beverage packaging, South America		405		534		855		1,028
Aerospace		499		490		1,007		994
Reportable segment sales		3,361		3,932		6,657		7,481
Other		205		202		398		369
Net sales	$	3,566	$	4,134	$	7,055	$	7,850
Comparable operating earnings
Beverage packaging, North and Central America	$	175	$	164	$	358	$	338
Beverage packaging, EMEA		98		129		171		229
Beverage packaging, South America		30		52		80		130
Aerospace		54		36		114		79
Reportable segment comparable operating earnings		357		381		723		776
Reconciling items
Other (a)		(8)		11		7		(18)
Business consolidation and other activities		6		(467)		(14)		(186)
Amortization of acquired intangibles		(34)		(32)		(68)		(69)
Earnings (loss) before interest and taxes		321		(107)		648		503
Interest expense		(115)		(68)		(228)		(137)
Debt refinancing and other costs		—		(2)		—		(2)
Total interest expense		(115)		(70)		(228)		(139)
Earnings (loss) before taxes	$	206	$	(177)	$	420	$	364

(a) Includes undistributed corporate expenses, net, of $32 million and $15 million for the three months ended June 30, 2023 and 2022, respectively, and $42 million and $48 million for the six months ended June 30, 2023 and 2022, respectively.

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