Business Segment Information

12 Months Ended

Dec. 31, 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. In the third quarter of 2023, Ball entered into a Stock Purchase Agreement with BAE Systems, Inc., to sell all of the outstanding equity interests in Ball’s aerospace business to BAE. On February 16, 2024, the company completed the divestiture of the aerospace business. See Note 4 for further details.

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 Myanmar; 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 2021, Ball sold its minority-owned investment in South Korea. In the first quarter of 2022, Ball sold its remaining equity method investment in Ball Metalpack. Refer to Note 4 for additional details on both transactions.

Major Customers

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

	2023		2022		2021
U.S. Government	14	%	12	%	13	%
Anheuser-Busch InBev and affiliates	13	%	13	%	12	%
Coca-Cola Bottlers' Sales & Services Company LLC and affiliates	11	%	11	%	10	%

Summary of Net Sales by Geographic Area (a)

($ in millions)	U.S.		Brazil		Other		Consolidated
2023	$	7,839	$	1,408	$	4,782	$	14,029
2022		8,487		1,450		5,412		15,349
2021		7,284		1,458		5,069		13,811

(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		Other		Consolidated
As of December 31, 2023	$	4,186	$	1,274	$	3,361	$	8,821
As of December 31, 2022		4,316		1,193		3,259		8,768

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

Summary of Business by Segment

	Years Ended December 31,
($ in millions)	2023		2022		2021
Net sales
Beverage packaging, North and Central America	$	5,963	$	6,696	$	5,856
Beverage packaging, EMEA		3,395		3,854		3,509
Beverage packaging, South America		1,960		2,108		2,016
Aerospace		1,967		1,977		1,911
Reportable segment sales		13,285		14,635		13,292
Other		744		714		519
Net sales	$	14,029	$	15,349	$	13,811
Comparable operating earnings
Beverage packaging, North and Central America	$	710	$	642	$	681
Beverage packaging, EMEA		354		358		452
Beverage packaging, South America		266		275		348
Aerospace		219		170		169
Reportable segment comparable operating earnings		1,549		1,445		1,650
Reconciling items
Other (a)		12		(25)		(65)
Business consolidation and other activities		(153)		(71)		(142)
Amortization of acquired intangibles		(135)		(135)		(152)
Earnings before interest and taxes		1,273		1,214		1,291
Interest expense		(459)		(312)		(270)
Debt refinancing and other costs		—		(18)		(13)
Total interest expense		(459)		(330)		(283)
Earnings before taxes	$	814	$	884	$	1,008

(a) Includes undistributed corporate expenses, net, of $74 million, $82 million and $72 million for the years ended December 2023, 2022 and 2021, respectively.

	Years Ended December 31,
($ in millions)	2023		2022		2021
Depreciation and amortization (a)
Beverage packaging, North and Central America	$	220	$	219	$	200
Beverage packaging, EMEA		178		185		223
Beverage packaging, South America		145		143		141
Aerospace		81		78		65
Reportable segment depreciation and amortization		624		625		629
Other		62		47		71
Depreciation and amortization	$	686	$	672	$	700
Capital expenditures
Beverage packaging, North and Central America	$	311	$	621	$	697
Beverage packaging, EMEA		378		458		305
Beverage packaging, South America		129		267		334
Aerospace		106		142		198
Reportable segment capital expenditures		924		1,488		1,534
Other		121		163		192
Capital expenditures	$	1,045	$	1,651	$	1,726

(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.