Business Segment Information

3 Months Ended

Mar. 31, 2024

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 three 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.

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.

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 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.

Summary of Business by Segment

	Three Months Ended March 31,
($ in millions)	2024		2023
Net sales
Beverage packaging, North and Central America	$	1,403	$	1,504
Beverage packaging, EMEA		810		834
Beverage packaging, South America		482		450
Reportable segment sales		2,695		2,788
Other		179		193
Net sales	$	2,874	$	2,981
Comparable operating earnings
Beverage packaging, North and Central America	$	192	$	183
Beverage packaging, EMEA		85		73
Beverage packaging, South America		55		50
Reportable segment comparable operating earnings		332		306
Reconciling items
Other (a)		(72)		15
Business consolidation and other activities		(26)		(20)
Amortization of acquired intangibles		(38)		(34)
Earnings before interest and taxes		196		267
Interest expense		(93)		(113)
Debt refinancing and other costs		(2)		—
Total interest expense		(95)		(113)
Earnings before taxes	$	101	$	154

(a) Includes undistributed corporate expenses, net, of $96 million and $10 million for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, undistributed corporate expenses, net, includes $79 million of incremental compensation cost from the successful sale of the aerospace business consisting of cash bonuses and stock based compensation. For the three months ended March 31, 2024, undistributed corporate expenses, net, also includes $17 million of corporate interest income.

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