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What changed in Ball Corporation's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Ball Corporation's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+231 added−271 removedSource: 10-K (2025-02-20) vs 10-K (2024-02-20)

Top changes in Ball Corporation's 2024 10-K

231 paragraphs added · 271 removed · 169 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeAdditionally, all employees have access to create a personal development plan and we have resources to support employees in their personal and professional development, including: ​ ● Continuous education through various tuition reimbursement programs, apprenticeship and instructional programs; ● A corporate academy platform designed to provide employees with a seamless and unified learning experience empowering them to thrive, grow, and reach their fullest potential; ● Monthly global leadership communications focused on real-time topics, such as supporting team wellbeing, working through stressful times, setting individual development goals, maximizing team performance, sharing practical steps to better enable our collective focus on D&I and sharing other best practice leadership behaviors; ● LinkedIn Learning platform for all corporate and packaging employees; ● Professional and personal development coaching opportunities by teaming with a global coaching firm; ● Intentional leadership programs for people leaders at all levels around our Inspire, Connect, and Achieve leadership behaviors; and 7 Table of Contents ● Annual compliance, antitrust, bribery, corruption and business code of conduct and ethics training for key management level, sales and supply chain employees. ​ Employee Engagement ​ At Ball, we aim to inspire and engage employees so they are focused on the work that matters most, perform their best work and choose Ball every day.
Biggest changeThese efforts enhance the data available for talent discussions and decision-making. ​ We believe that investing in our employees’ growth is essential to driving both individual and organizational success, which is why we provide comprehensive resources to support learning and development at all levels: ● Ball Academy Platform: A seamless and unified learning experience designed to help employees thrive, grow and achieve their fullest potential. ● Leadership Development Programs: Tailored programs for leaders at all levels that blend theoretical knowledge with practical application. ● LinkedIn Learning Access: Available to all employees for self-paced learning and skill enhancement. ● Professional Coaching: Personalized development opportunities through a partnership with a global coaching firm. ● Educational Support: Tuition reimbursement and instructional programs for continuous learning. ● Leadership Communications: Monthly newsletters for leaders addressing timely topics such as team wellbeing, managing change, setting goals, improving team performance, fostering belonging and inclusion and sharing effective leadership practices. ● Compliance Training: Annual training on compliance, antitrust, bribery, corruption and our business code of conduct for key management, sales and supply chain personnel.
Four companies currently manufacture substantially all of the aluminum beverage containers in the regions served by our beverage packaging, South America, segment. ​ The company’s South American beverage facilities shipped approximately 19 billion aluminum beverage containers in 2023. Historically, sales volumes of beverage containers in South America tend to be highest during the period from September through December.
Four companies currently manufacture substantially all of the aluminum beverage containers in the regions served by our beverage packaging, South America, segment. The company’s South American beverage facilities shipped approximately 19 billion aluminum beverage containers in 2024. ​ Historically, sales volumes of beverage containers in South America tend to be highest during the period from September through December.
We manage our intellectual property portfolio to obtain the durations necessary to achieve our business objectives. ​ Research and Development ​ Research and development (R&D) efforts in our packaging segments are primarily directed toward packaging innovation, specifically the development of new features, sizes, shapes and types of containers, as well as new uses for existing containers.
We manage our intellectual property portfolio to obtain the durations necessary to achieve our business objectives. ​ Research and Development ​ Research and development (R&D) efforts are primarily directed toward packaging innovation, specifically the development of new features, sizes, shapes and types of containers, as well as new uses for existing containers.
Aluminum beverage containers are primarily sold under multi-year supply contracts to fillers of carbonated soft drinks, beer, energy drinks and other beverages. ​ Aluminum beverage containers and ends are produced at 17 manufacturing facilities in the U.S., one in Canada and two in Mexico.
Aluminum beverage containers are primarily sold under multi-year supply contracts to fillers of carbonated soft drinks, beer, energy drinks and other beverages. ​ Aluminum beverage containers and ends are produced at 16 manufacturing facilities in the U.S., one in Canada and two in Mexico.
Six global aluminum suppliers provide almost all of our aluminum can and end sheet requirements. The company minimizes its exchange rate risk using derivative and supply contracts in local currencies.
Five global aluminum suppliers provide almost all of our aluminum can and end sheet requirements. The company minimizes its exchange rate risk using derivative and supply contracts in local currencies.
In North and Central America, a diverse base of no fewer than seven global suppliers provide almost all of our aluminum can and end sheet requirements . ​ Beverage containers are sold based on price, quality, service, innovation and sustainability in a highly competitive market, which is relatively capital intensive and characterized by facilities that run more or less continuously in order to operate profitably.
In North and Central America, a diverse base of more than six global suppliers provide almost all of our aluminum can and end sheet requirements . ​ Beverage containers are sold based on price, quality, service, innovation and sustainability in a highly competitive market, which is relatively capital intensive and characterized by facilities that run more or less continuously in order to operate profitably.
Additional financial information related to each of our segments is included in Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in Note 3 to the consolidated financial statements within Item 8 of this Annual Report on Form 10-K (annual report). ​ Beverage Packaging, North and Central America, Segment ​ Beverage packaging, North and Central America, is Ball’s largest segment, accounting for 43 percent of consolidated net sales in 2023.
Additional financial information related to each of our segments is included in Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in Note 3 to the consolidated financial statements within Item 8 of this Annual Report on Form 10-K (annual report). ​ Beverage Packaging, North and Central America, Segment ​ Beverage packaging, North and Central America, is Ball’s largest segment, accounting for 48 percent of consolidated net sales in 2024.
These trends are evolving, however, as customers, regulators and non-governmental organizations continue to press for more sustainable packaging in the wake of the global pollution crisis. More and more brands are choosing aluminum beverage packaging because of its infinite recyclability and other sustainability credentials.
These trends are evolving, however, as customers, regulators and non-governmental organizations continue to press for more sustainable packaging in the wake of the global pollution crisis. More and more brands are choosing aluminum beverage packaging because of its closed-loop recyclability and other sustainability credentials.
These documents are available on the company’s website at www.ball.com/investors, under the link “Corporate Governance.” A copy may also be obtained upon request from the company’s corporate secretary.
These documents are available on the company’s website at www.ball.com/investors, under the link “Governance.” A copy may also be obtained upon request from the company’s corporate secretary.
In addition, the aluminum beverage container competes aggressively with other packaging materials which include meaningful industry positions by the glass bottle in the packaged beer industry and the polyethylene terephthalate (PET) bottle in the carbonated soft drink and water industries. ​ We limit our exposure to changes in the cost of aluminum as a result of the inclusion of provisions in most of our aluminum beverage container sales contracts to pass through aluminum price changes, as well as through the use of derivative instruments. ​ Beverage Packaging, EMEA, Segment ​ The beverage packaging, EMEA, segment accounted for 24 percent of Ball’s consolidated net sales in 2023.
In addition, the aluminum beverage container competes aggressively with other packaging materials which include meaningful industry positions by the glass bottle in the packaged beer industry and the polyethylene terephthalate (PET) bottle in the carbonated soft drink and water industries. ​ 8 Table of Contents We limit our exposure to changes in the cost of aluminum as a result of the inclusion of provisions in most of our aluminum beverage container sales contracts to pass-through aluminum price changes, as well as through the use of derivative instruments. ​ Beverage Packaging, EMEA, Segment ​ The beverage packaging, EMEA, segment accounted for 29 percent of Ball’s consolidated net sales in 2024.
The company also maintains a website at www.ball.com/investors on which it provides a link to access Ball’s SEC reports free of charge, under the link “Financials.” ​ The company has established written Ball Corporation Corporate Governance Guidelines; a Ball Corporation Executive Officers and Board of Directors Business Ethics Statement; a Business Ethics Code of Conduct; and charters for its Audit Committee, Nominating/Corporate Governance Committee, Human Resources Committee and Finance Committee.
The company also maintains a website at www.ball.com/investors on which it provides a link to access Ball’s SEC reports free of charge, under the link “Financial Results.” ​ 10 Table of Contents The company has established written Ball Corporation Corporate Governance Guidelines; a Ball Corporation Executive Officers and Board of Directors Business Ethics Statement; a Business Ethics Code of Conduct; and charters for its Audit Committee, Nominating/Corporate Governance Committee, Human Resources Committee and Finance Committee.
The company’s combined annual and sustainability report, and updates on Ball’s sustainability progress are available at www.ball.com/sustainability. ​ The company will post on its website the nature of any amendments to the company’s codes of ethics that apply to executive officers and directors, including the chief executive officer, chief financial officer and controller, and the nature of any waiver or implied waiver from any code of ethics granted by the company to any executive officer or director.
The company’s Combined Annual and Sustainability Report is available at www.ball.com/sustainability. ​ The company will post on its website the nature of any amendments to the company’s codes of ethics that apply to executive officers and directors, including the chief executive officer, chief financial officer and controller, and the nature of any waiver or implied waiver from any code of ethics granted by the company to any executive officer or director.
Details of collective bargaining agreements are included within Item 1A, Risk Factors of this annual report. ​ Our Culture ​ Embracing our rich 144-year history, we “know who we are,” a company that respects and values each of our employees and their collective desire to deliver value to all our stakeholders.
Details of collective bargaining agreements are included within Item 1A, Risk Factors of this annual report. ​ Our Culture ​ Embracing our rich 145-year history, we are a company that respects and values each of our employees and their collective desire to deliver value to all our stakeholders.
Using a new calculation implemented by the European Union (EU) in 2022, the overall recycling rate for aluminum beverage cans in the EU, Switzerland, Norway and Iceland was approximately 73 percent in 2020. ​ Raw material supply contracts in this region generally have longer term agreements.
Using a new calculation implemented by the European Union (EU) in 2022, the overall recycling rate for aluminum beverage cans in the EU, U.K., Switzerland, Norway and Iceland was approximately 75 percent in 2022. ​ Raw material supply contracts in this region generally have longer term agreements.
A focus on diversity and inclusion among individuals and teams helps to unleash ideas and fuel innovation, driving growth and economic value throughout our global organization. ​ A healthy and sustainable business also depends on thriving communities.
A focus on BI&D among individuals and teams helps to unleash ideas and fuel innovation, driving growth and economic value throughout our global organization. ​ A healthy and sustainable business also depends on thriving communities.
For the fifth year in a row, Ball received an A- score in CDP’s climate change program.
For the seventh year in a row, Ball received an A- score in CDP’s climate change program.
For the countries in which we currently operate, the beverage container market is approximately 90 billion containers, and we are the largest producer with an estimated 38 percent of shipments in this region. The regions served by our beverage packaging, EMEA, segment, including Egypt and Turkey, are highly regional in terms of sales growth rates and packaging mix.
For the countries in which we currently operate, the aluminum beverage container market is approximately 93 billion containers, and we are the largest producer with an estimated 39 percent of shipments in this region. The markets served by our beverage packaging, EMEA, segment, including Egypt and Turkey, are highly regional in terms of sales growth rates and packaging mix.
Our operations consist of 12 facilities—9 in Brazil and one each in Argentina, Chile and Paraguay. For the countries where we operate, the South American beverage container market is approximately 41 billion containers, and we are the largest producer in this region with an estimated 47 percent of South American shipments in 2023.
Our operations consist of 12 facilities—9 in Brazil and one each in Argentina, Chile and Paraguay. For the countries where we operate, the South American aluminum beverage container market is approximately 43 billion containers, and we are the largest producer in this region with an estimated 45 percent of South American shipments in 2024.
Additionally, Ball has ownership interests in an equity method investment in Vietnam. ​ Aerosol Packaging ​ Our aluminum aerosol packaging operations manufacture and sell extruded aluminum aerosol containers, recloseable aluminum bottles across multiple consumer categories, and aluminum slugs, which represented less than 5 percent of Ball’s consolidated net sales in 2023.
Additionally, Ball has ownership interests in an equity method investment in Vietnam. ​ Personal & Home Care ​ Our personal & home care (PHC) operations manufacture and sell extruded aluminum aerosol containers, recloseable aluminum bottles across multiple consumer categories, and aluminum slugs, which represented less than 5 percent of Ball’s consolidated net sales in 2024.
These postings will appear on the company’s website at www.ball.com/investors, under the link “Corporate Governance.” ​ Nothing on our website, including postings to the “Corporate Governance” and “Financials” pages, or the Ball Corporation Combined Annual and Sustainability Report, or sections thereof, shall be deemed incorporated by reference into this annual report. ​
These postings will appear on the company’s website at www.ball.com/investors, under the link “Governance.” ​ Nothing on our website, including postings to the “Governance” and “Financial Results” pages, or the Ball Corporation Combined Annual and Sustainability Report, or sections thereof, shall be deemed incorporated by reference into this annual report. ​
We limit our exposure to changes in the cost of aluminum as a result of the inclusion of provisions in our aluminum beverage container sales contracts to pass through aluminum price changes, as well as through the use of derivative instruments. ​ 9 Table of Contents Beverage Packaging, South America, Segment ​ The beverage packaging, South America, segment accounted for 14 percent of Ball’s consolidated net sales in 2023.
We limit our exposure to changes in the cost of aluminum as a result of the inclusion of provisions in most of our aluminum beverage container sales contracts to pass-through aluminum price changes, as well as through the use of derivative instruments. ​ Beverage Packaging, South America, Segment ​ The beverage packaging, South America, segment accounted for 17 percent of Ball’s consolidated net sales in 2024.
Our commitment extends beyond our walls and includes purchasing aluminum from Aluminum Stewardship Initiative (ASI) certified sustainable sources and reducing value chain emissions, all in order to facilitate achievement of Ball’s and its customers’ GHG reduction objectives. ​ Today’s consumers are choosing brands based on their sustainability and circularity credentials.
Our commitment extends beyond our walls and includes purchasing aluminum from Aluminum Stewardship Initiative (ASI) certified sustainable sources and reducing value chain emissions, all in order to facilitate the achievement of Ball and its customers’ sustainability targets. ​ Today’s consumers are increasingly choosing brands based on their sustainability credentials.
This is exhibited through our Climate Transition Plan commitment to achieve a science-based 55 percent reduction in our greenhouse gas (GHG) footprint by 2030 and net zero carbon emissions prior to 2050, in part by reaching 100 percent renewable electricity globally by 2030.
This is exhibited through our commitment to achieve a science-based 55 percent reduction in our greenhouse gas (GHG) footprint by 2030 and net zero carbon emissions prior to 2050.
This focus drives improved processes, including products designed for optimum metal efficiency, real time energy monitoring, and reuse of water, as well as the minimization of waste and spoilage within our manufacturing plants.
This drives process optimization, including products designed for optimum metal efficiency, real time monitoring to improve energy efficiency and reuse of water, as well as the reduction of waste and spoilage within our manufacturing plants.
Real recycling happens when the value of the product being recycled is maintained from one use to another. ​ Because recycling aluminum saves resources and uses significantly less energy than primary aluminum production, we are innovating and collaborating with our customers, supply chain, industry groups and other public and private partners to establish and financially support initiatives to increase recycling rates around the world.
Because recycling aluminum saves resources and uses significantly less energy than primary aluminum production, we are innovating and collaborating with our customers, supply chain, industry groups and other public and private partners to establish and financially support initiatives to increase recycling rates around the world.
Maintain a clear and disciplined financial strategy focused on executing an efficient operating model to deliver comparable diluted earnings per share growth of 10 percent to 15 percent per annum over the long-term, maximize cash flow, increase Economic Value Added (EVA®) dollars and return value to shareholders. ​ The cash generated by our businesses is used primarily: (1) to finance the company’s operations, (2) to fund growth capital investments, (3) to service the company’s debt and (4) to return value to our shareholders via stock buybacks and dividend payments.
By leveraging our competitive advantages of bringing our scale to sustainability, the power of our partnerships and the unmatched talent of our people we will deliver on our promise of We Care… We Work… We Win… ​ We maintain a clear and disciplined financial strategy focused on executing an efficient operating model to deliver comparable diluted earnings per share growth in excess of 10 percent per annum over the long-term, maximize cash flow, increase Economic Value Added (EVA®) dollars and return value to shareholders. ​ The cash generated by our businesses is used primarily: (1) to finance the company’s operations, (2) to service the company’s debt, (3) to return value to our shareholders via stock buybacks and dividend payments, and (4) to fund organic or inorganic growth investments.
At the end of 2023, the company and its subsidiaries employed approximately 21,000 employees, including approximately 10,000 employees in the U.S.
At the end of 2024, the company and its subsidiaries employed approximately 16,000 employees, including approximately 5,000 employees in the U.S.
(BAE), 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.
(BAE) and, for the limited purposes set forth therein, BAE Systems plc, to sell all outstanding equity interests in Ball’s aerospace business to BAE. On February 16, 2024, the company completed the divestiture of the aerospace business.
This is evidenced by our high customer retention and large number of long-term supply contracts. While we have a diversified customer base, we sell a significant portion of our packaging products to major companies and brands, as well as to numerous regional customers.
While we have a diversified customer base, we sell a significant portion of our packaging products to major companies and brands, as well as to numerous regional customers.
In addition, the Employee Assistance Program provides employees and their families access to mental health, stress management and other support resources essential to navigating life changes and challenges. ​ Additional information on our human capital programs can be found in the Ball Corporation Combined Annual and Sustainability Report, which is available at www.ball.com/sustainability. ​ Our Reportable Segments ​ Ball Corporation reports its financial performance in four reportable segments: (1) beverage packaging, North and Central America; (2) beverage packaging, Europe, Middle East and Africa (beverage packaging, EMEA); (3) beverage packaging, South America and (4) aerospace.
In addition, the Employee Assistance Program provides employees and their families access to mental health, stress management and other support resources essential to navigating life changes and challenges. ​ Additional information on our human capital programs can be found in the Ball Corporation Combined Annual and Sustainability Report, which is available at www.ball.com/sustainability. ​ Our Reportable Segments ​ On February 16, 2024, the company completed the divestiture of its aerospace business.
In addition, Ball maintained a MSCI AA ESG rating, was included on the 2023 Dow Jones Sustainability Index, and was recognized as one of America’s Most Responsible Companies by Newsweek. ​ Human Capital and Employees ​ Ball Corporation’s people are its greatest asset and we are proud to outline the material aspects of our human capital program.
In addition, Ball earned a MSCI AAA ESG rating, 5 Table of Contents received a Gold Medal in recognition of overall sustainability achievements through EcoVadis and was recognized as one of America’s Most Responsible Companies by Newsweek. ​ Human Capital and Employees ​ Ball Corporation’s people are its greatest asset and we are proud to outline the material aspects of our human capital program.
During 2023, the company began production at its new aluminum beverage can manufacturing facilities in Pilsen, Czech Republic, and Kettering, U.K. ​ Historically, sales volumes of metal beverage containers in EMEA tend to be highest during the period from May through August, with a smaller increase in demand leading up to the winter holiday season in the U.K.
Our EMEA beverage facilities, shipped 36 billion aluminum beverage containers in 2024. ​ Historically, sales volumes of metal beverage containers in EMEA tend to be highest during the period from May through August, with a smaller increase in demand leading up to the winter holiday season in the U.K.
In 2023, we introduced our expanded global diversity and inclusion strategy and goals, which will help to ensure that we have a sustainable workforce, and foster a safe and inclusive work environment where everyone feels they belong and are valued for their differences and contributions.
This includes a global Belonging, Inclusion and Diversity (BI&D) strategy, which ensures we have a sustainable workforce, and foster a safe and inclusive work environment where everyone feels they belong and are valued for their differences and contributions.
See Note 4 for further details. ​ Our largest product line is aluminum beverage containers and we also produce extruded aluminum aerosol containers, recloseable aluminum bottles across multiple consumer categories, aluminum slugs and aluminum cups. ​ We sell our aluminum packaging products globally to large multinational beverage, personal care and household products companies with which we have developed long-term relationships.
See Note 4 for further details. ​ Our largest product line is aluminum beverage containers and we also produce extruded aluminum aerosol containers, recloseable aluminum bottles across multiple consumer categories, aluminum slugs and aluminum cups.
Unlike plastic, glass, cartons or compostable containers, aluminum containers are designed to be recycled infinitely without losing quality and retain a high economic value, pushing aluminum collection, sorting and recycling rates to the highest of any beverage packaging material. That is why 75 percent of all aluminum ever produced is still in use today.
Aluminum containers are designed to be recycled without losing quality and retain a high economic value, pushing aluminum collection, sorting and recycling rates to the highest of any beverage packaging material.
Additionally, in the fourth quarter of 2023, the company announced that it will permanently cease production at its aluminum beverage can manufacturing facility in Kent, Washington in the first half of 2024. ​ According to publicly available information and company estimates, the North American beverage container industry represents approximately 136 billion units.
Ball permanently ceased production at its aluminum beverage can manufacturing facility in Kent, Washington in the first quarter of 2024. ​ According to publicly available information and company estimates, the North American aluminum beverage container industry represents approximately 138 billion units. Five companies manufacture substantially all of the aluminum beverage containers in the U.S., Canada and Mexico.
The beverage packaging, North and Central America, segment also includes interests in three investments that are accounted for using the equity method. Ball permanently ceased production at its aluminum beverage can 8 Table of Contents manufacturing facility in St.
The beverage packaging, North and Central America, segment also includes interests in three investments that are accounted for using the equity method.
Total direct compensation is positioned in a competitive range of the applicable market median in each jurisdiction, differentiated based on tenure, skills, and performance, and designed to attract and retain the best talent. ​ Health, Safety and Wellness ​ The health, safety and wellness of all employees is a top priority at Ball.
Base pay is positioned in a competitive range of the applicable market median in each jurisdiction, differentiated based on skills, knowledge and experience, and designed to attract and retain the best talent.
During the past decade, we established and expanded our talent management organization with dedicated talent acquisition and development functions that have implemented rigorous hiring and development processes, including standardized assessments for candidate selection, and an embedded “Inspire, Connect, Achieve” leadership framework, which details clear behaviors that we expect from our people leaders to ensure they align with our culture.
Over the past decade, we have expanded our talent management organization with dedicated acquisition and development functions, implementing rigorous hiring processes and standardized assessments to align with our cultural values and strategic goals. Embedded in our approach is the “Inspire, Connect, Achieve” leadership framework, which defines clear behaviors for people leaders to drive performance and cultural alignment.
The compensation of many of our employees is tied directly to the company’s performance through our EVA®-based incentive programs. ​ 4 Table of Contents Sustainability ​ At Ball Corporation, we deliver circular aluminum packaging solutions.
The compensation of many of our employees is tied to the company’s performance through our EVA®-based incentive programs. ​ Sustainability ​ At Ball Corporation, we deliver circular aluminum packaging solutions and exist to unlock the infinite potential of aluminum to advance a world free from waste. ​ Our approach to sustainability has evolved over the past 20 years.
Uncertainties in the federal government budgeting process could delay the funding, or even result in cancellation of certain programs currently in our reported backlog. ​ Other ​ 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. ​ 10 Table of Contents Beverage Packaging, Other ​ Our aluminum beverage packaging operations in the beverage packaging, other, segment consist of four facilities – two in India and one each in Saudi Arabia and Myanmar.
In South America, two global suppliers provide virtually all our aluminum can and end sheet requirements with certain requirements also being imported from Asia. ​ We limit our exposure to changes in the cost of aluminum as a result of the inclusion of provisions in most of our aluminum beverage container sales contracts to pass-through aluminum price changes, as well as through the use of derivative instruments. ​ 9 Table of Contents Other ​ 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 (personal & home care, formerly 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. ​ Beverage Packaging, Other ​ Our aluminum beverage packaging operations in the beverage packaging, other, segment consist of four facilities – two in India and one each in Saudi Arabia and Myanmar.
Four companies manufacture substantially all of the metal beverage containers in EMEA. Our EMEA beverage facilities, shipped 35 billion beverage containers in 2023, all of which were made from aluminum.
Four companies manufacture substantially all of the metal beverage containers in EMEA.
Historically, sales volumes of metal beverage containers in North America tend to be highest during the period from April through September. All of the beverage containers produced by Ball in the U.S., Canada and Mexico are made of aluminum.
All of the beverage containers produced by Ball in the U.S., Canada and Mexico are made of aluminum.
Other R&D efforts in these segments seek to improve manufacturing efficiencies and the overall sustainability of our products. Our packaging R&D activities are primarily conducted in a technical center located in Westminster, Colorado. ​ In our aerospace business, R&D activities focus on the design, development and manufacture of innovative aerospace products and systems.
Other R&D efforts seek to improve manufacturing efficiencies and the overall sustainability of our products. Our R&D activities are primarily conducted in a technical center located in Westminster, Colorado. ​ Where to Find More Information ​ Ball Corporation is subject to the reporting and other information requirements of the Securities Exchange Act of 1934, as amended (Exchange Act).
Our sustainable, aluminum packaging products are produced for a variety of end uses and are manufactured in facilities around the world. We also provide aerospace and other technologies and services to governmental and commercial customers within our aerospace segment. In 2023, our total consolidated net sales were $14.03 billion.
Our sustainable, aluminum packaging products are produced for a variety of end uses and are manufactured in facilities around the world. In 2024, our total consolidated net sales were $11.80 billion. In the third quarter of 2023, Ball entered into a Stock Purchase Agreement (Agreement) with BAE Systems, Inc.
The aerosol packaging market in these countries shipped approximately 6.5 billion aluminum aerosol units in 2023 and we are one of the major producers in this combined area with shipments of 1.5 billion aluminum aerosol packaging containers, representing approximately 23 percent of total shipments in these markets. Our aluminum aerosol requirements are provided by several suppliers.
See Note 4 for further details regarding this acquisition. The PHC market in which we operate shipped approximately 8.2 billion units in 2024 and we are one of the major producers in this market with shipments of 1.5 billion aluminum PHC containers, representing approximately 19 percent of total shipments in the market.
We work together to create effective collection and recycling systems, and educate consumers about the sustainability and circularity benefits of aluminum packaging. ​ Our aerospace business plays a role in sustainability as well.
We work together to create effective collection and recycling systems, and educate consumers about the sustainability and circularity benefits of aluminum packaging. ​ At Ball, we believe our people and our culture enable our success and make it possible for us to deliver on our promises to customers, investors, communities and all of our stakeholders.
We have also strengthened our succession planning through a holistic approach to developing key managers that includes challenging assignments, formal development plans and professional coaching. ​ Training and Development ​ Our global human capital management platform enables rigorous identification, analysis and development of talent around the world.
We have also strengthened succession planning through a holistic strategy that combines challenging assignments, formal development plans and professional coaching to build a strong pipeline of future leaders.
Ball plans to introduce additional offerings to round out its cups portfolio and intends to expand adoption of the cups to drinking establishments, parks and recreation, colleges and universities, hospitality, restaurants, retail, business and industry. ​ Patents ​ In the opinion of the company’s management, none of our active patents or groups of patents is material to the successful operation of our business as a whole.
See Note 4 for further details. ​ Patents ​ In the opinion of the company’s management, none of our active patents or groups of patents is material to the successful operation of our business as a whole.
Five companies manufacture substantially all of the aluminum beverage containers in the U.S., Canada and Mexico. Ball shipped approximately 49 billion aluminum beverage containers in North and Central America in 2023, which represented approximately 36 percent of the aggregate shipments in these countries.
Ball, the largest producer in the region, shipped approximately 48 billion aluminum beverage containers in North and Central America in 2024, which represented approximately 34 percent of the aggregate shipments in these countries. Historically, sales volumes of metal beverage containers in North America tend to be highest during the period from April through September.
We sponsor a variety of health and wellness programs designed to enhance the physical and mental well-being of our employees around the world.
We sponsor a variety of health and wellbeing programs designed to support all aspects of our employees’ wellbeing, including their physical, emotional, social and financial health.
Ball customers understand this growing priority and their unique position in impacting the environment, especially through the packaging materials they use. Infinitely recyclable aluminum unlocks the full potential of packaging to help customers convey their values and purpose to consumers.
Ball customers understand this growing priority and their unique position in impacting the environment, especially through the packaging materials they use. In addition, with growing packaging design regulations around the world, aluminum cans are well positioned to incur low compliance costs due to circularity credentials, such as favorable recycling rates and recycled content.
We conduct regular company-wide engagement surveys, as well as periodic pulse surveys, which have generally indicated high levels of engagement and trust in Ball’s leadership, key strategies and initiatives. ​ Total Rewards ​ Our global total rewards philosophy enables business performance by offering comprehensive total rewards that attract, retain, and motivate our employees and promote their overall wellbeing.
As Ball looks to 2025, the focus remains on driving higher engagement and advancing team effectiveness to sustain a culture of collaboration and innovation. Total Rewards ​ Our global total rewards philosophy enables business performance by offering comprehensive total rewards that attract, retain and motivate our employees and promote their overall wellbeing.
See Note 4 for further details. ​ We are headquartered in Westminster, Colorado, and our stock is listed for trading on the New York Stock Exchange under the ticker symbol BALL. ​ Our Strategy ​ Advance sustainable aluminum packaging solutions at scale by leveraging our world-class talent, customer and supply chain partnerships, innovative product portfolio and capable manufacturing footprint to deliver single-use, limited-use and reusable aluminum cans, bottles and cups.
Our significant customers include top consumer packaging and beverage companies. ​ We are headquartered in Westminster, Colorado, and our stock is listed for trading on the New York Stock Exchange under the ticker symbol BALL. ​ Our Strategy ​ We exist to unlock the infinite potential of aluminum to advance a world free from waste.
In conjunction with that platform, the company utilizes an approach to performance management focused on development and continuous improvement. This approach emphasizes ongoing performance conversations between managers and employees and a focus on mitigating bias in performance conversations, resulting in an enhanced employee developmental experience and data points for our talent discussions.
To complement this, our performance enablement approach prioritizes employee growth and continuous improvement. The performance enablement methodology encourages regular, meaningful performance conversations between managers and employees, while actively mitigating bias and fostering a fair and enriching developmental experience.
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Our packaging businesses were responsible for 86 percent of our net sales, with the remaining 14 percent contributed by our aerospace business. In the third quarter of 2023, Ball entered into a Stock Purchase Agreement with BAE Systems, Inc. (BAE), to sell all of the outstanding equity interests in Ball’s aerospace business to BAE.
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At December 31, 2024, the assets and liabilities of the aluminum cups operating segment are presented as current assets held for sale and current liabilities held for sale on the consolidated balance sheet.
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On February 16, 2024, the company completed the divestiture of the aerospace business.
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See Note 4 for further details. ​ We sell our aluminum packaging products globally to large multinational beverage, personal care and household products companies with which we have developed long-term relationships. This is evidenced by our high customer retention and large number of long-term supply contracts.
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Our significant customers include top consumer packaging and beverage companies. ​ Our aerospace business is a leader in delivering solutions ranging from entire missions to contributing component level expertise through the design, development and manufacture of innovative systems for intelligence surveillance and reconnaissance, civil, commercial and national security aerospace markets.
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Today, Ball’s sustainability strategy is driven by high standards around carbon footprint reduction and the circularity of our products. Utilizing strategic partnerships across our value chain, we work to simplify sustainability for our customers by delivering scalable solutions that enable us to win together.
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It produces spacecraft, instruments and sensors, radio frequency systems and components, data exploitation solutions and a variety of advanced technologies and products that enable weather prediction and climate change monitoring as well as deep space missions. In the third quarter of 2023, Ball entered into a Stock Purchase Agreement with BAE Systems, Inc.
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This includes aligning our own 2030 Sustainability Goals and strategy to our customers’ climate-related targets, sustainability goals and regulatory requirements. ​ 4 Table of Contents We focus our sustainability efforts on environmental, social and governance impacts. Our vision is to advance sustainability through aluminum packaging.
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Our business is aligned around cohesive operating priorities focused on constant innovation, product capabilities, sustainability and financial stewardship. ​ Our approach to sustainability has evolved over the past 20 years. Today, Ball’s sustainability strategy is driven by high standards around carbon footprint reduction, the circularity of our products and closed-loop recycling.
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In addition, Ball is committed to hiring, training and retaining a highly qualified and high-performing employee population to work in our manufacturing facilities and offices, and we do so with the intention of having a skilled and engaged workforce. ​ Our innovation and manufacturing teams around the world focus on continuously driving operational excellence in support of Ball’s resource efficiency goals.
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Utilizing strategic partnerships, we work across the value chain towards our 2030 Sustainability Goals in line with our customers’ needs.
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As of 2023, Ball beverage cans contained 70 percent recycled content on average globally. Aluminum packaging unlocks the full potential of packaging to help customers convey their purpose to consumers, while limiting regulatory exposure.
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Climate leadership and driving real circularity are cornerstones of our business strategy and influence how we manage and operate our businesses, serve our customers, care for the environment and our communities, secure profits and drive long-term prosperity. ​ We focus our sustainability efforts on environmental, social and governance (ESG) impacts.
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That is why 75 percent of all aluminum ever produced is still in use today. ​ At a global 71 percent recycling rate with low yield losses and high product-to-product recycling loops, aluminum beverage packaging is the leader not only in recycling, but in circularity.
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In addition, our focus on the health and safety of our employees, diversity and inclusion (D&I), and employee development enables Ball to utilize the unmatched talent of our people to maintain an agile workforce. ​ Our innovation and manufacturing teams around the world focus on continuously improving operational efficiency.
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We are working hard to create a culture and environment in which zero injuries become the reality, so everyone working for or within Ball gets home safe and healthy to their families and friends every day.
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In addition, growing sustainability compliance costs for substrates with less favorable circularity credentials continue to see their costs of ownership rise in several regions. ​ Aluminum beverage packaging is the leader in real recycling, where the package is collected and then transformed into an item of equal value (product-to-product or material-to-material recycling).
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We embrace our diversity and are “one Ball” in valuing: ​ ● Leading with integrity; ● Working to create an enduring impact; and ● Winning through our customer focus ​ Belonging, Inclusion & Diversity ​ At Ball, fostering a workplace where every employee feels valued and empowered to contribute their best work has been an essential part of our success.
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In the case of aluminum cans, bottles or cups, which are mono-material, the aluminum can be recycled and made back into the same product in as little as 60 days. In contrast, only 10 percent of all plastic ever produced has been recycled and is mostly only downcycled.
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Since 2015, we have had a dedicated focus on inclusion, recognizing that a diverse workforce enhances innovation, collaboration, and business outcomes.
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Downcycled products, including but not limited to when plastic is converted to become part of a sneaker or fibers in a carpet, are not sustainable because eventually those products end up in landfills.
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In 2024, we expanded this focus to include Belonging, reinforcing our commitment to creating an environment where all employees feel respected, connected, and supported in their professional growth. ​ Our Global Inclusion Council, sponsored by our Chief Executive Officer and Chief Human Resources Officer, serves as a platform for collaboration and alignment on key Belonging, Inclusion & Diversity (BI&D) priorities.
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More and more, our systems are measuring key elements of the physical environment, supporting environmental monitoring, and operational weather forecasting programs, as well as providing environmental intelligence on weather, the Earth's climate system, precipitation, drought, GHG emissions and air pollution, as well as wildlife, vegetation and other biodiversity measurements.
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Our leaders across all business segments are committed to cultivating a workplace where every employee can thrive.
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The data captured through Ball 5 Table of Contents built instruments and satellites enable and enhance understanding of the Earth’s ecosystem and help scientists to pinpoint more accurately what type of GHGs and pollutants are being emitted, where they are coming from, and a precise idea of where they are moving. ​ At Ball, we believe our people and our culture enable our success and make it possible for us to deliver on our promises to customers, investors, communities and all of our stakeholders.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf such actions were to result in suspension or debarment, this could have a material adverse effect on our business. ​ Our business faces the potential of increased regulation on some of the raw materials utilized in our packaging operations. ​ Our operations are subject to federal, state, provincial and local laws and regulations in multiple jurisdictions relating to some of the raw materials, including epoxy-based coatings utilized in our container making process.
Biggest changeThe compliance costs associated with current and proposed laws and potential regulations could be substantial, and any failure or alleged failure to comply with these laws or regulations could lead to litigation or governmental action, all of which could adversely affect our financial condition or results of operations. ​ Our business faces the potential of increased regulation on some of the raw materials utilized in our packaging operations. ​ Our operations are subject to federal, state, provincial and local laws and regulations in multiple jurisdictions relating to some of the raw materials, including epoxy-based coatings utilized in our container making process.
Reasons for this include, but are not limited to, the following: ​ ● political and economic instability; ● governments’ restrictive trade policies; ● the imposition or rescission of duties, taxes or government royalties; ● exchange rate risks; ● inflation of direct input costs; ● virus and disease outbreaks and responses thereto; and ● difficulties in enforcement of contractual obligations and intellectual property rights. ​ We are exposed to exchange rate fluctuations. ​ The company’s financial results are exposed to currency exchange rate fluctuations and a significant proportion of assets, liabilities and earnings are denominated in non-U.S. dollar currencies.
Reasons for this include, but are not limited to, the following: ​ ● political and economic instability; ● governments’ restrictive trade policies; ● the imposition or rescission of duties, tariffs, taxes or government royalties; ● exchange rate risks; ● inflation of direct input costs; ● virus and disease outbreaks and responses thereto; and ● difficulties in enforcement of contractual obligations and intellectual property rights. ​ We are exposed to exchange rate fluctuations. ​ The company’s financial results are exposed to currency exchange rate fluctuations and a significant proportion of assets, liabilities and earnings are denominated in non-U.S. dollar currencies.
Such indebtedness could have significant consequences for our business and any investment in our securities, including: ​ ● increasing our vulnerability to adverse economic, industry or competitive developments; ● requiring more of our cash flows from operations to be dedicated to the payment of principal and interest on our indebtedness, thus limiting our cash flow available to fund our operations, capital expenditures and future business opportunities or the return of cash to our shareholders; ● restricting us from making additional acquisitions; ● limiting our ability to obtain additional financing for working capital, capital expenditures, product development, debt service requirements, acquisitions and general corporate or other purposes; and ● limiting our flexibility in planning for, or reacting to, changes in our business or market conditions and placing us at a competitive disadvantage compared to our competitors who may be less leveraged and who, therefore, may be able to take advantage of opportunities that our leverage prevents us from exploiting. ​ We face competitive risks from many sources that may negatively impact our profitability. ​ Competition within the packaging and aerospace industries is intense.
Such indebtedness could have significant consequences for our business and any investment in our securities, including: ​ ● increasing our vulnerability to adverse economic, industry or competitive developments; ● requiring more of our cash flows from operations to be dedicated to the payment of principal and interest on our indebtedness, thus limiting our cash flow available to fund our operations, capital expenditures and future business opportunities or the return of cash to our shareholders; ● restricting us from making additional acquisitions; ● limiting our ability to obtain additional financing for working capital, capital expenditures, product development, debt service requirements, acquisitions and general corporate or other purposes; and ● limiting our flexibility in planning for, or reacting to, changes in our business or market conditions and placing us at a competitive disadvantage compared to our competitors who may be less leveraged and who, therefore, may be able to take advantage of opportunities that our leverage prevents us from exploiting. ​ We face competitive risks from many sources that may negatively impact our profitability. ​ Competition within the packaging industry is intense.
We primarily use derivative instruments to manage our currency exposures and, as a result, we experience gains and losses on these derivative positions which are offset, in part, by the impact of currency fluctuations on existing assets and liabilities. ​ We are vulnerable to fluctuations and disruptions in the supply and price of raw materials. ​ We purchase aluminum and other raw materials and packaging supplies, including dunnage, from several sources.
We primarily use derivative instruments to manage our currency exposures and, as a result, we experience gains and losses on these derivative positions, which are offset by the impact of currency fluctuations on existing assets and liabilities. ​ We are vulnerable to fluctuations and disruptions in the supply and price of raw materials. ​ We purchase aluminum and other raw materials and packaging supplies, including dunnage, from several sources.
As of December 31, 2023, the company had no material weaknesses. 16 Table of Contents ​ We face risks related to health epidemics, pandemics and other outbreaks, which could adversely affect our business. ​ Health epidemics, pandemics and other outbreaks could give rise to circumstances that cause one or more of the following risk factors to occur: ​ ● We could lose key customers, customers could become insolvent or have a reduction in demand for our products and services; ● We could be subject to changes in laws and governmental regulations that adversely affect our business and operations; ● We could be subject to adverse fluctuations in currency exchange rates; ● We might lose key management and operating personnel; ● We may be subject to disruptions in the supply or price of our raw materials; ● We may face prolonged work stoppages at our facilities; ● We may be impacted by government budget constraints or government shutdowns; ● Our pension plan investments may not perform as expected, and we may be required to make additional contributions to our pension plans which would otherwise be available for other general corporate purposes; ● Our access to capital markets may be restricted, which could adversely affect our short-term liquidity and prevent us from fulfilling our obligations under the notes issued pursuant to our bond indentures; ● We may be subject to increased information technology (IT) security threats and reduced network access availability; ● Our operations and those of our principal customers and suppliers could be designated as non-essential in key markets; and ● A material weakness in our internal control over financial reporting or a material misstatement in our financial statements could occur. ​ Governmental and regulatory risks ​ Changes in laws and governmental regulations may adversely affect our business and operations. ​ We and our customers and suppliers are subject to various federal, state, provincial and local laws and regulations, which have been increasing in number and complexity.
As of December 31, 2024, the company had no material weaknesses. ​ We face risks related to health epidemics, pandemics and other outbreaks, which could adversely affect our business. ​ Health epidemics, pandemics and other outbreaks could give rise to circumstances that cause one or more of the following risk factors to occur: ​ ● We could lose key customers, customers could become insolvent or have a reduction in demand for our products and services; ● We could be subject to changes in laws and governmental regulations that adversely affect our business and operations; ● We could be subject to adverse fluctuations in currency exchange rates; ● We might lose key management and operating personnel; ● We may be subject to disruptions in the supply or price of our raw materials; ● We may face prolonged work stoppages at our facilities; ● We may be impacted by government budget constraints or government shutdowns; ● Our pension plan investments may not perform as expected, and we may be required to make additional contributions to our pension plans which would otherwise be available for other general corporate purposes; ● Our access to capital markets may be restricted, which could adversely affect our short-term liquidity and prevent us from fulfilling our obligations under the notes issued pursuant to our bond indentures; 15 Table of Contents ● We may be subject to increased information technology (IT) security threats and reduced network access availability; ● Our operations and those of our principal customers and suppliers could be designated as non-essential in key markets; and ● A material weakness in our internal control over financial reporting or a material misstatement in our financial statements could occur. ​ Governmental and regulatory risks ​ Changes in laws and governmental regulations may adversely affect our business and operations. ​ We and our customers and suppliers are subject to various federal, state, provincial and local laws and regulations, which have been increasing in number and complexity.
To mitigate these risks, the Company is working with its suppliers to require them to remove PFAS-containing coatings from our products. 18 Table of Contents ​ Earnings and cash flows can be impacted by changes in tax laws. ​ As a U.S.-based multinational business, the company is subject to income tax in the U.S. and numerous jurisdictions outside the U.S., as well as recent OECD, European Commission and other trans-national initiatives that seek to impose minimum tax thresholds on most multi-national companies.
To mitigate these risks, the Company is working with its suppliers to require them to remove PFAS-containing coatings from our products. 16 Table of Contents ​ Earnings and cash flows can be impacted by changes in tax laws. ​ As a U.S.-based multinational business, the company is subject to income tax in the U.S. and numerous jurisdictions outside the U.S., as well as recent OECD, European Commission and other trans-national initiatives that seek to impose minimum tax thresholds on most multi-national companies.
This could result in increases to our contributions to the plans as well as pension expense. ​ 15 Table of Contents Restricted access to capital markets could adversely affect our short-term liquidity and prevent us from fulfilling our obligations under the notes issued pursuant to our bond indentures. ​ A reduction in global market liquidity could: ​ ● restrict our ability to fund working capital, capital expenditures, research and development expenditures and other business activities; ● increase our vulnerability to general adverse economic and industry conditions, including the credit risks stemming from the economic environment; ● limit our flexibility in planning for, or reacting to, changes in our businesses and the industries in which we operate; ● restrict us from making strategic acquisitions or exploiting business opportunities; and ● limit, along with the financial and other restrictive covenants in our debt, among other things, our ability to borrow additional funds, dispose of assets, pay cash dividends or refinance debt maturities. ​ If market interest rates increase, our variable-rate debt and any need to refinance debt will create higher debt service requirements, which adversely affects our cash flows.
This could result in increases to our contributions to the plans as well as pension expense. ​ Restricted access to capital markets could adversely affect our short-term liquidity and prevent us from fulfilling our obligations under the notes issued pursuant to our bond indentures. ​ A reduction in global market liquidity could: ​ ● restrict our ability to fund working capital, capital expenditures and other business activities; ● increase our vulnerability to general adverse economic and industry conditions, including the credit risks stemming from the economic environment; ● limit our flexibility in planning for, or reacting to, changes in our businesses and the industries in which we operate; ● restrict us from making strategic acquisitions or exploiting business opportunities; and ● limit, along with the financial and other restrictive covenants in our debt, among other things, our ability to borrow additional funds, dispose of assets, pay cash dividends or refinance debt maturities. ​ If market interest rates increase, our variable-rate debt and any need to refinance debt will create higher debt service requirements, which adversely affects our cash flows.
There can be no assurance that our products will successfully compete against alternative products, which could result in a reduction in our profits or cash flows. ​ 13 Table of Contents Our packaging businesses have a narrow product range, and our business would suffer if usage of our products decreased or if decreases occur in the demand for the beverages and other goods filled in our products. ​ The majority of our consolidated net sales were from the sale of beverage containers, and we expect to derive a significant portion of our future revenues and cash flows from the sale of beverage containers.
There can be no assurance that our products will successfully compete against alternative products, which could result in a reduction in our profits or cash flows. ​ Our packaging businesses have a narrow product range, and our business would suffer if usage of our products decreased or if decreases occur in the demand for the beverages and other goods filled in our products. ​ The majority of our consolidated net sales were from the sale of beverage containers, and we expect to derive a significant portion of our future revenues and cash flows from the sale of beverage containers.
Unseasonable weather can reduce demand for certain beverages packaged in our containers. Climate change and the increasing frequency of severe weather events could have various effects on the demand for our products, our supply chain and the costs of inputs to our production and delivery of products in different regions around the world.
Unseasonable weather can reduce demand for certain beverages packaged in our containers. Climate changes and the increasing frequency of severe weather events could have various effects on the demand for our products, our supply chain and the costs of inputs to our production and delivery of products in different regions around the world.
While we sometimes enter into agreements limiting our exposure, any such agreements may not offer complete protection from this risk. ​ The global credit, financial and economic environment could have a negative impact on our results of operations, financial position or cash flows. ​ The overall credit, financial and economic environment could have significant negative effects on our operations, including: ​ ● the creditworthiness of customers, suppliers and counterparties could deteriorate resulting in a financial loss or a disruption in our supply of raw materials; ● volatile market performance could affect the fair value of our pension assets, potentially requiring us to make significant additional contributions to our defined benefit pension plans to maintain prescribed funding levels; ● a significant weakening of our financial position or operating results could result in noncompliance with our debt covenants; and ● reduced cash flows from our operations could adversely affect our ability to execute our long-term strategy to increase liquidity, reduce debt, repurchase our stock and invest in our businesses. ​ Changes in U.S. generally accepted accounting principles (U.S.
While we sometimes enter into agreements limiting our exposure, any such agreements may not offer complete protection from this risk. ​ 14 Table of Contents The global credit, financial and economic environment could have a negative impact on our results of operations, financial position or cash flows. ​ The overall credit, financial and economic environment could have significant negative effects on our operations, including: ​ ● the creditworthiness of customers, suppliers and counterparties could deteriorate resulting in a financial loss or a disruption in our supply of raw materials; ● volatile market performance could affect the fair value of our pension assets, potentially requiring us to make significant additional contributions to our defined benefit pension plans to maintain prescribed funding levels; ● a significant weakening of our financial position or operating results could result in noncompliance with our debt covenants; and ● reduced cash flows from our operations could adversely affect our ability to execute our long-term strategy to repurchase our stock and invest in our businesses. ​ Changes in U.S. generally accepted accounting principles (U.S.
Moreover, overcapacity, which often leads to lower prices, may develop over time in certain regions in which we operate even if demand continues to grow. More generally, supply and demand fluctuations could make it difficult for us to forecast and meet certain customers’ 12 Table of Contents needs.
Moreover, overcapacity, which often leads to lower prices, may develop over time in certain regions in which we operate even if demand continues to grow. More generally, supply and demand fluctuations could make it difficult for us to forecast and meet certain customers’ needs.
GAAP net earnings and net assets. ​ If the investments in Ball’s pension plans, or in the multi-employer pension plans in which Ball participates, do not perform as expected, we may have to contribute additional amounts to the plans, which would otherwise be available for other general corporate purposes. ​ Ball maintains defined benefit pension plans covering substantially all of its employees in the United States, which are funded based on certain actuarial assumptions.
GAAP net earnings and net assets. ​ If the investments in Ball’s pension plans, or in the multi-employer pension plans in which Ball participates, do not perform as expected, we may have to contribute additional amounts to the plans, which would otherwise be available for other general corporate purposes. ​ Ball maintains defined benefit pension plans covering a significant portion of its current and former employees in the United States, which are funded based on certain actuarial assumptions.
If demand for glass and PET bottles increases relative to aluminum containers, or the demand for aluminum containers does not develop as expected, our business, results of operations, cash flows and financial condition could be materially adversely affected. ​ Our business, financial condition, cash flows and results of operations are subject to risks resulting from broader geographic operations. ​ We derived approximately 44 percent of our consolidated net sales from outside of the U.S. for the year ended December 31, 2023.
If demand for glass and PET bottles increases relative to aluminum containers, or the demand for aluminum containers does not develop as expected, our business, results of operations, cash flows and financial condition could be materially adversely affected. ​ 12 Table of Contents Our business, financial condition, cash flows and results of operations are subject to risks resulting from broader geographic operations. ​ We derived approximately 54 percent of our consolidated net sales from outside of the U.S. for the year ended December 31, 2024.
Unforeseen losses of key members of our management team without appropriate succession and/or compensation planning could make it difficult for us to manage our business and meet our objectives. ​ Prolonged work stoppages at facilities with union employees could jeopardize our financial position. ​ As of December 31, 2023, 8 percent of our North American employees and 39 percent of our European employees were covered by collective bargaining agreements.
Unforeseen losses of key members of our management team without appropriate succession and/or compensation planning could make it difficult for us to manage our business and meet our objectives. 17 Table of Contents ​ Prolonged work stoppages at facilities with union employees could jeopardize our financial position. ​ As of December 31, 2024, 13 percent of our North American employees and 27 percent of our European employees were covered by collective bargaining agreements.
The packages we produce are widely used and perform well in U.S. states, Canadian provinces and European countries that have deposit systems, as well as in other countries worldwide. ​ Significant environmental, employment-related and other legislation and regulatory requirements exist and are also evolving.
The packages we produce are widely used and perform well in U.S. states, Canadian provinces and European countries that have deposit systems, as well as in other countries worldwide. ​ Environmental, social and governance reporting requirements and other legislation and regulatory requirements exist and are also evolving.
Also, because our supply chains are complex, we may face reputational challenges with our customers and other stakeholders if we are unable to sufficiently verify the origins of all materials used in the products that we sell. The compliance and reporting aspects of these regulations may result in incremental costs to the company.
Also, because our supply chains are complex, we may face reputational challenges with our customers and other stakeholders if we are unable to sufficiently verify the origins of all materials used in the products that we sell.
Increases in productivity, combined with potential surplus capacity in the packaging industry, have maintained competitive pricing pressures. The principal methods of competition in the general packaging industry are price, innovation, sustainability, service and quality. In the aerospace industry, they are technical capability, cost and schedule.
Increases in productivity, combined with potential surplus capacity, have maintained competitive pricing pressures. The principal methods of competition in the general packaging industry are price, innovation, sustainability, service and quality. Some of our competitors may have greater financial, technical and marketing resources, and some may currently have excess capacity.
Some of our competitors may have greater financial, technical and marketing resources, and some may currently have excess capacity. Our current or potential competitors may offer products at a lower price or products that are deemed superior to ours.
Our current or potential competitors may offer products at a lower price or products that are deemed superior to ours.
Because we depend on a relatively limited number of major customers, our business, financial condition or results of operations could be adversely affected by the loss of any of these customers, a reduction in the purchasing levels of these customers, a strike or work stoppage by a significant number of these customers’ employees or an adverse change in the terms of the supply agreements with these customers. ​ The primary customers for our aerospace segment are U.S. government agencies or their prime contractors.
Because we depend on a relatively limited number of major customers, our business, financial condition or results of operations could be adversely affected by the loss of any of these 11 Table of Contents customers, a reduction in the purchasing levels of these customers, a strike or work stoppage by a significant number of these customers’ employees or an adverse change in the terms of the supply agreements with these customers. ​ We have a significant level of debt that could have important consequences for our business and any investment in our securities. ​ The company had $5.69 billion of interest-bearing debt at December 31, 2024.
Competition from plastic carbonated soft drink bottles is particularly intense in the U.S. and Europe, and competition from glass beer bottles has recently increased in Brazil. Certain of our aerospace products are also subject to competition from alternative products and solutions.
Competition from plastic carbonated soft drink bottles is particularly intense in the U.S. and Europe, and there is competition from glass beer bottles in Brazil.
Data privacy and protection laws are evolving and present increasing compliance challenges, which may increase our costs, affect our competitiveness and could expose us to substantial fines or other penalties.
Data privacy and protection laws are evolving and present increasing compliance challenges, which may increase our costs, affect our competitiveness and could expose us to substantial fines or other penalties. ​ Human capital risks ​ If we fail to retain key management and personnel, we may be unable to implement our key objectives. ​ We believe our future success depends, in part, on our experienced management team.
While deposit systems and other container-related legislation have been adopted in some jurisdictions, similar legislation has been defeated in public referenda and legislative bodies in many others. We anticipate that continuing efforts will be made to consider and adopt such legislation in the future.
The compliance and reporting aspects of these regulations may result in incremental costs to the company. ​ While deposit systems and other container-related legislation have been adopted in some jurisdictions, similar legislation has been defeated in public referenda and legislative bodies in many others.
The fixed-price contracts could subject us to losses if we have cost overruns or if increases in our costs exceed the applicable escalation rate. ​ Net earnings and net assets could be materially affected by an impairment of goodwill. ​ We have a significant amount of goodwill recorded on our consolidated balance sheet as of December 31, 2023.
The delayed timing in recovering the pass-through of increasing raw material costs may also impact our short-term profitability and certain costs due to price increases or supply chain inefficiencies may be unrecoverable, which would also impact our profitability. ​ 13 Table of Contents Net earnings and net assets could be materially affected by an impairment of goodwill. ​ We have a significant amount of goodwill recorded on our consolidated balance sheet as of December 31, 2024.
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Our contracts with these customers are subject to several risks, including funding cuts and delays, technical uncertainties, budget changes, government shutdowns, competitive activity and changes in scope. ​ We have a significant level of debt that could have important consequences for our business and any investment in our securities. ​ The company had $8.62 billion of interest-bearing debt at December 31, 2023.
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We anticipate that continuing efforts will be made to consider and adopt such legislation in the future.
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The delayed timing in recovering the pass-through of increasing raw material costs may also impact our short-term 14 Table of Contents profitability and certain costs due to price increases or supply chain inefficiencies may be unrecoverable, which would also impact our profitability. ​ We use estimates in accounting for many of our programs in our aerospace business, and changes in our estimates could adversely affect our future financial results. ​ We account for sales and profits on a portion of long-term contracts in our aerospace business in accordance with the percentage-of-completion method of accounting, using the cost-to-cost method to account for updates in estimates.
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The percentage-of-completion method of accounting involves the use of various estimating techniques to project revenues and costs at completion and various assumptions and projections related to the outcome of future events, including the quantity and timing of product deliveries, future labor performance and rates, and material and overhead costs. These assumptions involve various levels of expected performance improvements.
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Under the cost-to-cost method, the impact of updates in our estimates related to units shipped to date or progress made to date is recognized immediately.
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Given the significance of the judgments and estimates described above, it is likely that we could record materially different amounts if we used different assumptions or if the underlying circumstances or estimates were to change. ​ Our backlog includes both cost-type and fixed-price contracts. Cost-type contracts generally have lower profit margins than fixed-price contracts.
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Our earnings and margins may vary depending on the types of government contracts undertaken, the nature of the work performed under those contracts, the costs incurred in performing the work, the achievement of other performance objectives and their impact on our ability to receive fees.
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The compliance costs associated with current and proposed laws and potential regulations could be substantial, and any failure or alleged failure to comply with these laws or regulations could lead to litigation or governmental action, all of which could adversely affect our financial condition or results of operations. ​ 17 Table of Contents Our aerospace segment is subject to certain risks specific to that business. ​ In our aerospace business, U.S. government contracts are subject to reduction or modification in the event of changes in requirements, and the government may also terminate contracts at its convenience pursuant to standard termination provisions.
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In such instances, Ball may be entitled to reimbursement for allowable costs and profits on authorized work that has been performed through the date of termination. ​ In addition, budgetary constraints and government shutdowns may result in further reductions to projected spending levels by the U.S. government.
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In particular, government expenditures are subject to the potential for automatic reductions, generally referred to as “sequestration.” Sequestration may occur in any given year, resulting in significant additional reductions to spending by various U.S. government defense and aerospace agencies on both existing and new contracts, as well as the disruption of ongoing programs.
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Even if sequestration does not occur, we expect that budgetary constraints and ongoing concerns regarding the U.S. national debt will continue to place downward pressure on agency spending levels.
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Due to these and other factors, overall spending on various programs could decline, which could result in significant reductions to revenue, cash flows, net earnings and backlog primarily in our aerospace segment. ​ As a U.S. government contractor, we could be adversely affected by changes in regulations or any negative findings from a U.S. government audit or investigation. ​ Our aerospace business operates in a highly regulated environment and is routinely audited and reviewed by the U.S. government and its agencies, such as the Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA).
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These agencies review performance under our contracts, our cost structure and our compliance with applicable laws, regulations and standards, as well as the adequacy of, and our compliance with, our internal control systems and policies.
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Business systems that are subject to review under the DoD Federal Acquisition Regulation Supplement (DFARS) are purchasing, estimating, material management and accounting, as well as property and earned value management. Any costs ultimately found to be unallowable or improperly allocated to a specific contract will not be reimbursed or must be refunded if already reimbursed.
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If an audit uncovers improper or illegal activities, we may be subject to civil and criminal penalties, sanctions or suspension or debarment from doing business with the U.S. government. Whether or not illegal activities are alleged, the U.S. government also has the ability to decrease or withhold certain payments when it deems systems subject to its review to be inadequate.
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As a provider of products and services to government and commercial customers, our aerospace business in particular may be the target of cyber-attacks, including attempts to gain unauthorized access to classified or sensitive information and networks.
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In addition, a security breach that involves classified or other sensitive government information could subject us to civil or criminal penalties and could result in the loss of our secure facility clearance and other accreditation, loss of our government contracts, loss of access to classified information or debarment as a government contractor. ​ 19 Table of Contents Human capital risks ​ If we fail to retain key management and personnel, we may be unable to implement our key objectives. ​ We believe our future success depends, in part, on our experienced management team.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIf a cybersecurity threat is at risk of materially affecting our company, our cross-functional response team will enact our escalation processes to notify appropriate levels of management, along with the executive leadership team, disclosure committee, and Board of Directors, as necessary. ​ Our Board of Directors is responsible for providing oversight and governance with respect to IT and cybersecurity matters, which includes providing oversight over disclosure controls and procedures related to any cybersecurity breach occurrences and IT matters.
Biggest changeIn the event of a cyber incident, our cross-functional response team will enact our incident response plan, and notify appropriate levels of management, including the executive leadership team, disclosure committee, and Board of Directors, as appropriate. ​ Our Board of Directors oversees our company’s cybersecurity and information technology strategies.
We have a dedicated, globally distributed information security team that is responsible for leading information security strategy, standards and processes, which are integrated into our comprehensive enterprise risk management process. ​ The company employs a standards-based cybersecurity program aligned to the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), including ongoing assessment and continuous improvement to address the rapidly evolving threat landscape.
We have a dedicated, globally distributed information security team that is responsible for leading information security strategy, standards and processes, which are integrated into our comprehensive enterprise risk management process, including processes related to cybersecurity risks. ​ The company employs a standards-based cybersecurity program aligned to the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), including ongoing assessment and continuous improvement to address the rapidly evolving threat landscape.
Ball partners closely with a strong network of external partners, including conducting annual assessments of the cyber risk management program against the NIST CSF. ​ Our information security team has designed and implemented formal processes for assessing, identifying and managing material risk from cybersecurity threats, both internally and related to the use of third-party service providers.
Ball partners closely with a strong network of external partners, including conducting annual assessments of the cyber risk management program against the NIST CSF. ​ Our information security team has established and implemented formal processes and policies to assess, identify, and manage risks arising from cybersecurity threats, including those associated with our internal operations and the use of third-party service providers.
Refer to Item 1A, Risk Factors – Technological Risks, for additional details on cybersecurity risks that could potentially materially affect the company, including its business strategy, results of operations, financial condition and reputation. ​ Governance ​ Ball’s Chief Information Security Director (CISD) reports to the Senior Vice President and Chief Information Officer (CIO) and leads the company’s cybersecurity team.
Refer to Item 1A, Risk Factors – Technological Risks, for additional details on cybersecurity risks that could potentially materially affect the company, including its business strategy, results of operations, financial condition and reputation.
This provides us with expanded global threat intel and enhances our ability to deliver continuous, global cyber operations 24/7. ​ We are aware of the increasing risks associated with third-party service providers and have implemented processes to oversee and manage these risks.
This provides us with expanded global threat intel and enhances our ability to deliver continuous global cyber operations 24/7. ​ We are aware that there are potential cybersecurity risks associated with third-party service providers. Prior to engaging with third-party providers, Ball conducts thorough security assessments.
Annually, the CIO briefs the Board of Directors on the company’s cybersecurity posture, the effectiveness of its risk management strategies, and the emerging threat landscape, which creates alignment of cybersecurity efforts with Ball’s risk management framework. ​ 21 Table of Contents
Annually, the CIO briefs the Board of Directors on the company’s cybersecurity posture and the effectiveness of its risk management strategies. ​ ​
The cybersecurity team has extensive experience selecting, deploying, and operating cybersecurity technologies, strategies and processes, and couples this knowledge with the use of external experts employed by Ball to protect the company from cyber threats. ​ Through our global security incident management plan, we aim to prevent potential cybersecurity incidents from becoming material with early detection, escalation, mitigation and remediation activities.
The cybersecurity team has extensive experience selecting, deploying, and operating cybersecurity technologies, strategies and processes, and couples this knowledge with the use of external experts to protect the company from cyber threats.
These critical linkages ensure that we have an effective and efficient overall response to potential threats, with appropriate leadership governance involved in the ongoing cyber materiality assessment and determination. ​ In response to the ever-evolving cyber threat landscape, Ball utilizes external experts to support continuous improvement across our cyber program, processes and operations.
In addition, we have aligned our incident response plan with our enterprise risk and global crisis management processes. ​ In response to the ever-evolving cyber threat landscape, Ball utilizes external experts to support continuous improvement across our cyber program, processes and operations.
These partnerships enable us to leverage specialized knowledge and insights to ensure our cybersecurity strategy and improvements remain aligned to critical improvements and address relevant threats and risks for Ball. In addition, we also augment and extend our cyber team, using a select few, trusted third-party partners, integrated as members of our global operations.
Our collaboration with these third-parties includes regular audits, 18 Table of Contents threat assessments, and consultation on cyber enhancements. In addition, we also augment and extend our cyber team using a select few trusted third-party partners that are integrated as members of our global operations.
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Ball has strategically integrated its cyber incident assessment process with its well-defined incident response plan and processes. 20 Table of Contents In addition, we have aligned our incident response plan and process with our enterprise risk and global crisis management processes.
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We continually refine our approach to address evolving cybersecurity regulations, identify potential and emerging security risks, and implement strategies to manage these risks. Ball has developed an incident response plan that includes a cyber incident materiality assessment with appropriate leadership governance.
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This includes involving independent cybersecurity assessors and auditors to perform ongoing evaluation of our cyber program and operational maturity. Our collaboration with these third-parties includes regular audits, threat assessments, and consultation on cyber enhancements.
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We monitor for third-party cyber incidents and manage any third-party cyber incidents under our incident response plan and processes.
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Prior to engaging with third-party providers, Ball conducts thorough security assessments and also performs ongoing monitoring to ensure compliance with our cybersecurity standards. Third-party cyber incidents follow our incident response plan and processes, including full assessment and remediation.
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To date, we have not identified any cybersecurity incidents that have affected, or are reasonably likely to affect, our business, operations, or financial condition. ​ Governance ​ Ball’s Chief Information Security Director (CISD) reports to the Senior Vice President and Chief Information Officer (CIO) and leads the company’s cybersecurity team.
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Ball experiences cyber threats in the normal course of its business; however, prior cybersecurity incidents have not materially affected the company.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeIn addition to the facilities listed, the company leases other warehousing space. ​ Beverage packaging, North and Central America, locations: ● Bowling Green, Kentucky ● Conroe, Texas ● Fairfield, California ● Findlay, Ohio ● Fort Atkinson, Wisconsin ● Fort Worth, Texas ● Glendale, Arizona ● Golden, Colorado ● Goodyear, Arizona ● Kapolei, Hawaii ● Kent, Washington (planned closure in the first half of 2024) ● Monterrey, Mexico ● Monticello, Indiana ● Pittston, Pennsylvania ● Queretaro, Mexico ● Rome, Georgia ● Saratoga Springs, New York ● Tampa, Florida ● Whitby, Ontario, Canada ● Williamsburg, Virginia ​ Beverage packaging, EMEA, locations: ● Belgrade, Serbia ● Bierne, France ● Cabanillas del Campo, Spain ● Cairo, Egypt ● Ejpovice, Czech Republic ● Fosie, Sweden ● Fredericia, Denmark ● Gelsenkirchen, Germany ● Kettering, United Kingdom ● La Selva, Spain ● Lublin, Poland ● Ludesch, Austria ● Manisa, Turkey ● Mantsala, Finland ● Milton Keynes, United Kingdom ● Mont, France ● Nogara, Italy ● Pilsen, Czech Republic 22 Table of Contents ● Wakefield, United Kingdom ● Waterford, Ireland ● Widnau, Switzerland ​ Beverage packaging, South America, locations: ● Aguas Claras, Brazil ● Asuncion, Paraguay ● Brasilia, Brazil ● Buenos Aires, Argentina ● Extrema, Brazil ● Frutal, Brazil ● Jacarei, Sao Paulo, Brazil ● Manaus, Brazil ● Pouso Alegre, Brazil ● Recife, Brazil ● Santiago, Chile ● Tres Rios, Rio de Janeiro, Brazil ​ Beverage packaging, Other, locations: ● Dammam, Saudi Arabia ● Mumbai, India ● Sri City, India ● Yangon, Myanmar Aerosol packaging locations: ● Ahmedabad, India ● Beaurepaire, France ● Bellegarde, France ● Devizes, United Kingdom ● Itupeva, Brazil ● San Luis Potosí, Mexico ● Sherbrooke, Quebec, Canada ● Velim, Czech Republic Aluminum cups location: ● Rome, Georgia ​
Biggest changeIn addition to the facilities listed, the company leases other warehousing space. ​ Beverage packaging, North and Central America, locations: ● Bowling Green, Kentucky ● Conroe, Texas ● Fairfield, California ● Findlay, Ohio ● Fort Atkinson, Wisconsin ● Fort Worth, Texas ● Glendale, Arizona ● Golden, Colorado ● Goodyear, Arizona ● Kapolei, Hawaii ● Monterrey, Mexico ● Monticello, Indiana ● Pittston, Pennsylvania 19 Table of Contents ● Queretaro, Mexico ● Rome, Georgia ● Saratoga Springs, New York ● Tampa, Florida ● Whitby, Ontario, Canada ● Williamsburg, Virginia ​ Beverage packaging, EMEA, locations: ● Belgrade, Serbia ● Bierne, France ● Cabanillas del Campo, Spain ● Cairo, Egypt ● Ejpovice, Czech Republic ● Fosie, Sweden ● Fredericia, Denmark ● Gelsenkirchen, Germany ● Kettering, United Kingdom ● La Selva, Spain ● Lublin, Poland ● Ludesch, Austria ● Manisa, Turkey ● Mantsala, Finland ● Milton Keynes, United Kingdom ● Mont, France ● Nogara, Italy ● Pilsen, Czech Republic ● Wakefield, United Kingdom ● Waterford, Ireland ● Widnau, Switzerland ​ Beverage packaging, South America, locations: ● Aguas Claras, Brazil ● Asuncion, Paraguay ● Brasilia, Brazil ● Buenos Aires, Argentina ● Extrema, Brazil ● Frutal, Brazil ● Jacarei, Sao Paulo, Brazil ● Manaus, Brazil ● Pouso Alegre, Brazil ● Recife, Brazil ● Santiago, Chile ● Tres Rios, Rio de Janeiro, Brazil ​ Beverage packaging, Other, locations: ● Dammam, Saudi Arabia (presented as held for sale as of December 31, 2024 on the consolidated balance sheet) ● Mumbai, India ● Sri City, India ● Yangon, Myanmar ​ 20 Table of Contents Personal & home care locations: ● Ahmedabad, India (presented as held for sale as of December 31, 2024 on the consolidated balance sheet) ● Beaurepaire, France ● Bellegarde, France ● Devizes, United Kingdom ● Itupeva, Brazil ● Llinars del Vallés, Spain ● Lummen, Belgium ● San Luis Potosí, Mexico ● Sherbrooke, Quebec, Canada ● Velim, Czech Republic Aluminum cups location: ● Rome, Georgia (presented as held for sale as of December 31, 2024 on the consolidated balance sheet) ​
Item 2. Properties ​ The company’s properties described below are well maintained, and management considers them to be adequate and utilized for their intended purposes. ​ Ball’s corporate headquarters are located in Westminster, Colorado, U.S. and our aerospace segment management offices are located in Broomfield, Colorado, U.S.
Item 2. Properties ​ The company’s properties described below are well maintained, and management considers them to be adequate and utilized for their intended purposes. ​ Ball’s corporate headquarters are located in Westminster, Colorado, U.S. Ball’s manufacturing locations, which are owned or leased by the company, are set forth below.
See Note 4 for further details. ​ Ball’s manufacturing locations for significant packaging operations, which are owned or leased by the company, are set forth below. Facilities in the process of being constructed, or that have permanently ceased production, have been excluded from the list.
Facilities in the process of being constructed, or that have permanently ceased production, have been excluded from the list.
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The operations of the aerospace segment occupy a variety of company-owned and leased facilities in Colorado, U.S., which comprise office, laboratory, research and development, engineering and test and manufacturing space. Other aerospace operations carry on business in smaller company owned and leased facilities in other U.S. locations outside of Colorado.
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In the third quarter of 2023, Ball entered into a Stock Purchase Agreement with BAE Systems, Inc. (BAE), 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.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeEmployee Benefit Obligations 76 ​ Note 18. Shareholders’ Equity 85 ​ Note 19. Stock-Based Compensation Programs 87 ​ Note 20. Earnings Per Share 89 ​ Note 21. Financial Instruments and Risk Management 89 ​ Table of Contents ​ Note 22. Contingencies 95 ​ Note 23. Indemnifications and Guarantees 96
Biggest changeEmployee Benefit Obligations 71 ​ Note 18. Shareholders’ Equity 80 ​ Note 19. Stock-Based Compensation Programs 81 ​ Note 20. Earnings Per Share 83 ​ Table of Contents ​ Note 21. Financial Instruments and Risk Management 84 ​ Note 22. Contingencies 90 ​ Note 23. Indemnifications and Guarantees 90 ​ Note 24. Quarterly Results of Operations (Unaudited) 92
Item 4. Mine Safety Disclosures 23 ​ ​ ​ PART II. ​ ​ ​ ​ Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23 Item 6. [Reserved] 25 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 26 ​ Forward-Looking Statements 37 Item 7A.
Item 4. Mine Safety Disclosures 21 ​ ​ ​ PART II. ​ ​ ​ ​ Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21 Item 6. [Reserved] 22 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 23 ​ Forward-Looking Statements 32 Item 7A.
Quantitative and Qualitative Disclosures About Market Risk 38 Item 8.
Quantitative and Qualitative Disclosures About Market Risk 33 Item 8.
Receivables, Net 66 ​ Note 9. Inventories, Net 67 ​ Note 10. Property, Plant and Equipment, Net 67 ​ Note 11. Goodwill 68 ​ Note 12. Intangibles Assets, Net 68 ​ Note 13. Other Assets 69 ​ Note 14. Leases 69 ​ Note 15. Debt and Interest Costs 71 ​ Note 16. Taxes on Income 72 ​ Note 17.
Receivables, Net 62 ​ Note 9. Inventories, Net 62 ​ Note 10. Property, Plant and Equipment, Net 63 ​ Note 11. Goodwill 63 ​ Note 12. Intangibles Assets, Net 63 ​ Note 13. Other Assets 64 ​ Note 14. Leases 64 ​ Note 15. Debt and Interest Costs 66 ​ Note 16. Taxes on Income 67 ​ Note 17.
Financial Statements and Supplementary Data 40 ​ Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) 40 ​ Consolidated Statements of Earnings for the Years Ended December 31, 2023, 2022 and 2021 42 ​ Consolidated Statements of Comprehensive Earnings (Loss) for the Years Ended December 31, 2023, 2022 and 2021 43 ​ Consolidated Balance Sheets at December 31, 2023 and 2022 44 ​ Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021 45 ​ Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2023, 2022 and 2021 46 ​ Notes to the Consolidated Financial Statements 47 ​ Note 1.
Financial Statements and Supplementary Data 35 ​ Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) 35 ​ Consolidated Statements of Earnings for the Years Ended December 31, 2024, 2023 and 2022 37 ​ Consolidated Statements of Comprehensive Earnings (Loss) for the Years Ended December 31, 2024, 2023 and 2022 38 ​ Consolidated Balance Sheets at December 31, 2024 and 2023 39 ​ Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022 40 ​ Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2024 2023 and 2022 41 ​ Notes to the Consolidated Financial Statements 42 ​ Note 1.
Critical and Significant Accounting Policies 47 ​ Note 2. Accounting Pronouncements 58 ​ Note 3. Business Segment Information 59 ​ Note 4. Acquisitions and Dispositions 62 ​ Note 5. Revenue from Contracts with Customers 64 ​ Note 6. Business Consolidation and Other Activities 65 ​ Note 7. Supplemental Cash Flow Statement Disclosures 66 ​ Note 8.
Critical and Significant Accounting Policies 42 ​ Note 2. Accounting Pronouncements 52 ​ Note 3. Business Segment Information 53 ​ Note 4. Acquisitions and Dispositions 56 ​ Note 5. Revenue from Contracts with Customers 60 ​ Note 6. Business Consolidation and Other Activities 60 ​ Note 7. Supplemental Cash Flow Statement Disclosures 61 ​ Note 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThere were 6,675 common shareholders of record on February 15, 2024. ​ 23 Table of Contents Common Stock Repurchases ​ The following table summarizes the company’s repurchases of its common stock during the fourth quarter of 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchases of Securities ($ in millions) Total Number of Shares Purchased (a) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (b) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 1 to October 31, 2023 ​ — ​ $ — ​ — ​ 19,596,607 November 1 to November 30, 2023 ​ — ​ ​ — ​ — ​ 19,596,607 December 1 to December 31, 2023 ​ — ​ ​ — ​ — ​ 19,596,607 Total ​ — ​ ​ ​ ​ — ​ ​ (a) Includes any open market purchases (on a trade-date basis), share repurchase agreements and/or shares retained by the company to settle employee withholding tax liabilities.
Biggest changeThere were 8,354 common shareholders of record on February 18, 2025. ​ Common Stock Repurchases ​ The following table summarizes the company’s repurchases of its common stock during the fourth quarter of 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchases of Securities ($ in millions) Total Number of Shares Purchased (a) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (b) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 1 to October 31, 2024 ​ 1,893,489 ​ $ 66.04 ​ 1,893,489 ​ 27,117,752 November 1 to November 30, 2024 ​ 3,865,124 ​ ​ 61.50 ​ 3,865,124 ​ 23,252,628 December 1 to December 31, 2024 ​ 4,972,167 ​ ​ 58.32 ​ 4,972,167 ​ 18,280,461 Total ​ 10,730,780 ​ ​ ​ ​ 10,730,780 ​ ​ (a) Includes any open market purchases (on a trade-date basis), share repurchase agreements and/or shares retained by the company to settle employee withholding tax liabilities.
The graph assumes $100 was invested on December 31, 2018, and that all dividends were reinvested.
The graph assumes $100 was invested on December 31, 2019, and that all dividends were reinvested.
(b) The company has an ongoing repurchase program for which 50 million shares were authorized for repurchase by Ball’s Board of Directors. ​ Shareholder Return Performance ​ The line graph below compares the annual percentage change in Ball Corporation’s cumulative total shareholder return on its common stock with the cumulative total return of the Dow Jones Containers & Packaging Index and the S&P Composite 500 Stock Index for the five-year period ended December 31, 2023.
This repurchase authorization replaced the April 24, 2024, authorization. ​ 21 Table of Contents Shareholder Return Performance ​ The line graph below compares the annual percentage change in Ball Corporation’s cumulative total shareholder return on its common stock with the cumulative total return of the Dow Jones Containers & Packaging Index and the S&P Composite 500 Stock Index for the five-year period ended December 31, 2024.
The Dow Jones Containers & Packaging Index total return has been weighted by market capitalization. ​ 24 Table of Contents ​ ​ Total Return Analysis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12/31/2018 ​ 12/31/2019 ​ 12/31/2020 ​ 12/31/2021 ​ 12/31/2022 ​ 12/31/2023 BALL ​ $ 100.00 ​ $ 141.83 ​ $ 205.93 ​ $ 214.43 ​ $ 115.30 ​ $ 131.61 S&P 500 ​ ​ 100.00 ​ ​ 128.88 ​ ​ 149.83 ​ ​ 190.13 ​ ​ 153.16 ​ ​ 190.27 DJ US Containers & Packaging ​ ​ 100.00 ​ ​ 125.59 ​ ​ 118.34 ​ ​ 108.85 ​ ​ 80.30 ​ ​ 104.72 ​ Source: Refinitiv ​
The Dow Jones Containers & Packaging Index total return has been weighted by market capitalization. ​ ​ Total Return Analysis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12/31/2019 ​ 12/31/2020 ​ 12/31/2021 ​ 12/31/2022 ​ 12/31/2023 ​ 12/31/2024 BALL ​ $ 100.00 ​ $ 145.19 ​ $ 151.18 ​ $ 81.29 ​ $ 92.79 ​ $ 90.04 S&P 500 ​ ​ 100.00 ​ ​ 118.40 ​ ​ 152.39 ​ ​ 124.79 ​ ​ 157.59 ​ ​ 197.02 DJ US Containers & Packaging ​ ​ 100.00 ​ ​ 121.14 ​ ​ 134.41 ​ ​ 110.49 ​ ​ 118.91 ​ ​ 136.67 ​ Source: Bloomberg ​
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(b) On April 24, 2024, Ball’s Board of Directors approved the repurchase by the company of up to a total of 40 million shares of its common stock. This repurchase authorization replaced all previous authorizations.
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On January 29, 2025, the Board of Directors approved the repurchase by the company of up to a total of $4.00 billion in shares of its common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeIt remains uncertain how long any of these conditions may last or how severe any of them may become. ​ Consolidated Sales and Earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ($ in millions) 2023 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 14,029 ​ $ 15,349 ​ $ 13,811 ​ Net earnings attributable to Ball Corporation ​ ​ 707 ​ ​ 719 ​ ​ 878 ​ Net earnings attributable to Ball Corporation as a % of net sales ​ ​ 5 % ​ 5 % ​ 6 % ​ Sales in 2023 were $1,320 million lower compared to 2022 primarily due to a $554 million decrease from the 2022 sale of the Russian aluminum beverage packaging business, a $514 million decrease from lower volumes and a $305 million decrease from lower sales prices resulting mainly from lower aluminum prices net of the annual pass-through of inflationary costs. ​ Net earnings attributable to Ball Corporation in 2023 were $12 million lower compared to 2022 primarily due to an $129 million increase in interest expense, an $124 million decrease from lower volumes, an $86 million decrease from the 2022 sale of the Russian aluminum beverage packaging business and an $82 million increase in business consolidation costs and other activities, partially offset by an $184 million increase from higher sales prices resulting mainly from the annual pass-through of inflationary costs net of current year inflation, $80 million of cost savings from rightsizing production, a $49 million increase from contract mix and operational performance in the aerospace segment and a $36 million decrease in the income tax provision. ​ Cost of Sales (Excluding Depreciation and Amortization) ​ Cost of sales, excluding depreciation and amortization, was $11,359 million in 2023 compared to $12,766 million in 2022.
Biggest changeIt remains uncertain how long any of these conditions may last or how severe any of them may become. ​ Consolidated Sales and Earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ($ in millions) 2024 2023 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 11,795 ​ $ 12,062 ​ $ 13,372 ​ Net earnings attributable to Ball Corporation ​ ​ 4,008 ​ ​ 707 ​ ​ 719 ​ Net earnings attributable to Ball Corporation as a % of net sales ​ ​ 34 % ​ 6 % ​ 5 % ​ Sales in 2024 decreased $267 million compared to 2023 primarily due to decreases of $213 million from lower sales prices and $70 million from lost volume as a result of the 2023 fire at the company’s Verona, Virginia extruded aluminum slug manufacturing facility. ​ Net earnings attributable to Ball Corporation in 2024 increased $3.30 billion compared to 2023 primarily due to increases of $3.36 billion from discontinued operations, net of tax, $129 million from the results of the reportable segments discussed below, $167 million from lower interest expense and $42 million from higher interest income in corporate undistributed expenses, net, partially offset by increases in costs of $287 million from business consolidation and other activities and $82 million from incremental compensation cost from the successful sale of the aerospace business . ​ When analyzing net earnings attributable to Ball Corporation as a percentage of net sales, it is important to note that net earnings attributable to Ball Corporation includes discontinued operations, net of tax resulting from the net sales attributable to the historical aerospace reportable segment through the date of the divestiture on February 16, 2024, that are now reported as discontinued operations.
These financial measures may be adjusted at times for items that affect comparability between periods, including business consolidation costs and other non-comparable items. ​ Nonfinancial measures used in the packaging businesses include production efficiency and spoilage rates; quality control figures; environmental, health and safety statistics; production and sales volume data; asset utilization rates and measures of sustainability.
These financial measures may be adjusted at times for items that affect comparability between periods, including business consolidation and other non-comparable items. ​ Nonfinancial measures used in the packaging businesses include production efficiency and spoilage rates; quality control figures; environmental, health and safety statistics; production and sales volume data; asset utilization rates and measures of sustainability.
The company believes its U.S. operating cash flows and cash on hand, as well as availability under its long-term, revolving credit facilities, uncommitted short-term credit facilities and committed and uncommitted accounts receivable factoring programs, will be sufficient to meet the cash requirements of the U.S. portion of our ongoing operations, scheduled principal and interest payments on U.S. debt, dividend payments, capital expenditures and other U.S. cash requirements.
The company believes its U.S. operating cash flows and cash on hand, as well as availability under its long-term, revolving credit facilities, uncommitted short-term credit facilities and accounts receivable factoring programs, will be sufficient to meet the cash requirements of the U.S. portion of our ongoing operations, scheduled principal and interest payments on U.S. debt, dividend payments, capital expenditures and other U.S. cash requirements.
Additional factors that might affect: a) Ball’s packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather and related events such as drought, wildfires, storms, hurricanes, tornadoes and floods; footprint adjustments and other manufacturing changes, including the startup of new facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on Ball’s supply chain and its ability to operate in Europe, the Middle East and Africa regions generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and orders affecting goods produced by Ball or in its supply chain, including imported raw materials; and b) Ball as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, environmental, social and governance reporting, competition, environmental, health and workplace safety, including U.S.
Additional factors that might affect: a) Ball’s packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather and related events such as drought, wildfires, storms, hurricanes, tornadoes and floods; footprint adjustments and other manufacturing changes, including the opening and closing of facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass-through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on Ball’s supply chain and its ability to operate in Europe, the Middle East and Africa regions generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and orders affecting goods produced by Ball or in its supply chain, including imported raw materials; and b) Ball as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, environmental, social and governance reporting, competition, environmental, health and workplace safety, including U.S.
We cannot predict with any certainty the impact that rising interest rates, a global or any regional recession, or higher inflation may have on our customers or suppliers.
We cannot predict with any certainty the impact that interest rates, a global or any regional recession, or higher inflation may have on our customers or suppliers.
As described in the supplemental indentures governing the company’s existing senior notes, the senior notes are guaranteed by any of the company’s domestic subsidiaries that guarantee any other indebtedness of the company. ​ The following summarized financial information relates to the obligor group as of and for the years ended December 31, 2023 and 2022.
As described in the supplemental indentures governing the company’s existing senior notes, the senior notes are guaranteed by any of the company’s domestic subsidiaries that guarantee any other indebtedness of the company. ​ The following summarized financial information relates to the obligor group as of and for the years ended December 31, 2024 and 2023.
The assumptions used in accounting for the company’s defined benefit plans and how they have changed over time, as well as the sensitivity of the plans to changes in their related assumptions, can be found in Note 17 to the consolidated financial statements within Item 8 of this annual report. ​ FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES ​ Cash Flows and Capital Expenditures ​ Our primary sources of liquidity are cash provided by operating activities and external borrowings.
The assumptions used in accounting for the company’s defined benefit plans and how they have changed over time, as well as the sensitivity of the plans to changes in their related assumptions, can be found in Note 17 to the consolidated financial statements within Item 8 of this annual report. ​ 27 Table of Contents FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES ​ Cash Flows and Capital Expenditures ​ Our primary sources of liquidity are cash provided by operating activities and external borrowings.
Approximately $258 million of capital expenditures were contractually committed as of December 31, 2023. Maturities for Ball’s long-term debt are disclosed in Note 15 to the consolidated financial statements within Item 8 of this annual report. Repayments of debt and other operational cash requirements will also be funded by operating cash flows and external borrowings.
Approximately $244 million of capital expenditures were contractually committed as of December 31, 2024. Maturities for Ball’s long-term debt are disclosed in Note 15 to the consolidated financial statements within Item 8 of this annual report. Repayments of debt and other operational cash requirements will also be funded by operating cash flows and external borrowings.
The company has no material off-balance sheet arrangements. ​ CONTINGENCIES, INDEMNIFICATIONS AND GUARANTEES ​ Details of the company’s contingencies, legal proceedings, indemnifications and guarantees are available in Note 22 and Note 23 to the consolidated financial statements within Item 8 of this annual report.
The company has no material off-balance sheet arrangements. ​ 30 Table of Contents CONTINGENCIES, INDEMNIFICATIONS AND GUARANTEES ​ Details of the company’s contingencies, legal proceedings, indemnifications and guarantees are available in Note 22 and Note 23 to the consolidated financial statements within Item 8 of this annual report.
Current and future inflationary effects may continue to be impacted by, among other things, supply chain disruptions, governmental stimulus or fiscal and monetary policies, changes in interest rates, and changing demand for certain goods and services.
That said, current and future inflationary effects may continue to be impacted by, among other things, supply chain disruptions, governmental stimulus or fiscal and monetary policies, changes in interest rates, tariffs, and changing demand for certain goods and services.
Federal Drug Administration and other actions or public concerns affecting products filled in Ball’s containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of Ball’s defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies, including policies, orders, and actions related to COVID-19; reduced cash flow; interest rates affecting Ball’s debt; successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on Ball’s operating results and business generally. ​ 37 Table of Contents
Federal Drug Administration and other actions or public concerns affecting products filled in Ball’s containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of Ball’s defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies; reduced cash flow; interest rates affecting Ball’s debt; successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on Ball’s operating results and business generally. ​ 32 Table of Contents
The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividends, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of our debt covenants requires us to maintain a leverage ratio (as defined) of no greater than 5.0 times, which will change to 4.5 times as of September 30, 2025.
The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of our debt covenants requires us to maintain a leverage ratio (as defined) of no greater than 5.0 times, which will change to 4.5 times as of September 30, 2025.
This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors. ​ As of December 31, 2023, approximately $687 million of our cash was held outside of the U.S.
This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors. ​ As of December 31, 2024, approximately $416 million of our cash was held outside of the U.S.
Additionally, we are unable to predict the potential effects that any future pandemic, or the continuation or escalation of global conflicts, including the conflict between Russia and Ukraine and the rising instability in the Middle East, and related sanctions or market disruptions, may have on our business.
Additionally, we are unable to predict the potential effects that any future pandemic, hyperinflation in Argentina and Egypt, or the continuation or escalation of global conflicts, including the conflict between Russia and Ukraine and the instability in the Middle East and Myanmar, and related sanctions or market disruptions, may have on our business.
During the years ended December 31, 2023 and 2022, the obligor group received dividends from other subsidiary companies of $814 million and $18 million, respectively. ​ A description of the terms and conditions of the company’s debt guarantees is located in Note 23 to the consolidated financial statements within Item 8 of this annual report. ​ 36 Table of Contents FORWARD-LOOKING STATEMENTS ​ This report contains “forward-looking” statements concerning future events and financial performance.
During the years ended December 31, 2024 and 2023, the obligor group received dividends from other subsidiary companies of $54 million and $814 million, respectively. ​ A description of the terms and conditions of the company’s debt guarantees is located in Note 23 to the consolidated financial statements within Item 8 of this annual report. ​ FORWARD-LOOKING STATEMENTS ​ This report contains “forward-looking” statements concerning future events and financial performance.
While these items are expected to recur, the potential magnitude of each item is uncertain. ​ Further details of taxes on income are provided in Note 16 to the consolidated financial statements within Item 8 of this annual report. ​ RESULTS OF BUSINESS SEGMENTS ​ Segment Results ​ Ball’s operations are organized and reviewed by management along its product lines and geographical areas, and its operating results are presented in the four reportable segments discussed below. ​ 28 Table of Contents Beverage Packaging, North and Central America ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ($ in millions) ​ 2023 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 5,963 ​ $ 6,696 ​ $ 5,856 ​ Comparable operating earnings ​ ​ 710 ​ ​ 642 ​ ​ 681 ​ Comparable operating earnings as a % of segment net sales ​ ​ 12 % ​ 10 % ​ 12 % ​ Ball permanently ceased production at its Phoenix, Arizona aluminum beverage can manufacturing facility in the fourth quarter of 2022, permanently ceased production at its aluminum beverage can manufacturing facility in St.
While these items are expected to recur, the potential magnitude of each item is uncertain. ​ Further details of taxes on income are provided in Note 16 to the consolidated financial statements within Item 8 of this annual report. ​ 25 Table of Contents RESULTS OF BUSINESS SEGMENTS ​ Segment Results ​ Ball’s operations are organized and reviewed by management along its product lines and geographical areas, and its operating results are presented in the three reportable segments discussed below. ​ Beverage Packaging, North and Central America ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ($ in millions) ​ 2024 2023 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ ​ $ 5,619 ​ $ 5,963 ​ $ 6,696 ​ Comparable operating earnings ​ ​ ​ 747 ​ ​ 710 ​ ​ 642 ​ Comparable operating earnings as a % of segment net sales ​ ​ ​ 13 % ​ 12 % ​ 10 % ​ Ball permanently ceased production at its aluminum beverage can manufacturing facility in St.
The programs are accounted for as true sales of the receivables, with limited recourse to Ball, and had combined limits of approximately $2.00 billion and $2.04 billion at December 31, 2023, and December 31, 2022, respectively. A total of $350 million and $488 million were available for sale under these programs at December 31, 2023 and 2022, respectively.
The programs are accounted for as true sales of the receivables, with limited recourse to Ball, and had combined limits of approximately $1.60 billion and $2.00 billion at December 31, 2024 and 2023, respectively. A total of $428 million and $350 million were available for sale under these programs as of December 31, 2024 and 2023, respectively.
The company has recorded $97 million, $67 million and $41 million of expense related to its factoring programs in 2023, 2022 and 2021, respectively, and has presented these amounts in selling, general, and administrative in its consolidated statements of earnings. ​ The company has several regional supplier finance programs with various financial institutions that act as the paying agent for certain payables of the company.
The company has recorded $44 million, $93 million and $64 million of expense related to its factoring programs in 2024, 2023 and 2022, respectively, and has presented these amounts in selling, general and administrative in its consolidated statements of earnings. ​ The company has several regional supplier finance programs with various financial institutions that act as the paying agent for certain payables of the company.
At December 31, 2022, the company had $293 million of committed short-term loans outstanding and $112 million outstanding under short-term uncommitted credit facilities. ​ While ongoing financial and economic conditions in certain areas may raise concerns about credit risk with counterparties to derivative transactions, the company mitigates its exposure by allocating the risk among various counterparties and limiting exposure to any one party.
At December 31, 2023, the company had $196 million of committed short-term loans outstanding and $13 million outstanding under short-term uncommitted credit facilities. 29 Table of Contents ​ While ongoing financial and economic conditions in certain areas may raise concerns about credit risk with counterparties to derivative transactions, the company mitigates its exposure by allocating the risk among various counterparties and limiting exposure to any one party.
We also monitor the credit ratings of our suppliers, customers, lenders and counterparties on a regular basis. ​ We were in compliance with all loan agreements at December 31, 2023, and for all prior years presented, and we have met all debt payment obligations.
We also monitor the credit ratings of our suppliers, customers, lenders and counterparties on a regular basis. ​ We were in compliance with the leverage ratio requirement at December 31, 2024, and for all prior years presented, and have met all debt payment obligations.
At December 31, 2023, days sales outstanding, net of factored receivables, was 62 days; therefore, a change of one day in days sales outstanding will impact cash flows provided by (used in) operating activities by $38 million.
At December 31, 2024, days sales outstanding, net of factored receivables, was 68 days; therefore, a change of one day in days sales outstanding will impact cash flows provided by (used in) operating activities by $32 million.
We believe that cash flows from operating activities and cash provided by short-term, long-term and committed revolver borrowings, when necessary, will be sufficient to meet our ongoing operating requirements, scheduled principal and interest payments on debt, dividend payments, anticipated share repurchases and anticipated capital expenditures.
We believe that cash flows from operating activities, even in the absence of operating cash flows from the historical aerospace reportable segment, and cash provided by short-term, long-term and committed revolver borrowings, when necessary, will be sufficient to meet our ongoing operating requirements, scheduled principal and interest payments on debt, dividend payments, anticipated share repurchases and anticipated capital expenditures.
At December 31, 2023, days payable outstanding was 118 days; therefore, a change of one day in days payable outstanding will impact cash flows provided by (used in) operating activities by $30 million.
At December 31, 2024, days payable outstanding was 130 days; therefore, a change of one day in days payable outstanding will impact cash flows provided by (used in) operating activities by $25 million.
It is not practical to estimate the additional taxes that might become payable if these earnings were remitted to the U.S. ​ Share Repurchases ​ The company’s share repurchases totaled $3 million in 2023 and $618 million in 2022.
It is not practical to estimate the additional taxes that might become payable if these earnings were remitted to the U.S. ​ Share Repurchases ​ The company’s share repurchases were $1.71 billion in 2024 and $3 million in 2023.
Intercompany transactions, equity investments and other intercompany activity between obligor group subsidiaries have been eliminated from the summarized financial information.
Intercompany transactions, equity investments and other intercompany activity between obligor group subsidiaries have been eliminated from the summarized financial information. Investments in subsidiaries not forming part of the obligor group have also been eliminated.
In addition, management uses operating cash flows as a measure to evaluate the company’s liquidity. We believe this information is also useful to investors as it provides insight into the earnings and cash flow criteria that management uses to make strategic decisions.
We believe this information is also useful to investors as it provides insight into the earnings and cash flow criteria that management uses to make strategic decisions.
We took actions to normalize inventory levels and reduce fixed and variable costs in 2023 that improved financial results. ​ Depreciation and Amortization ​ Depreciation and amortization expense was $686 million in 2023 compared to $672 million in 2022. These amounts represented 5 percent and 4 percent of consolidated net sales for the years ended 2023 and 2022, respectively.
We took actions to normalize inventory levels and reduce fixed and variable costs in 2024 and 2023. ​ Depreciation and Amortization ​ Depreciation and amortization expense was $611 million in 2024 compared to $605 million in 2023. These amounts represented 5 percent of consolidated net sales for the years ended 2024 and 2023.
The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's programs was $709 million and $930 million at December 31, 2023 and 2022, respectively.
The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's programs was $423 million and $703 million at December 31, 2024 and 28 Table of Contents 2023, respectively.
As such, the increase in interest expense was primarily driven by an $132 million increase from higher weighted average interest rates on outstanding debt during the year, along with a $15 million increase from a larger amount of weighted average principal outstanding during the year. ​ Tax Provision ​ The company’s effective tax rate is affected by recurring items such as income earned in non-U.S. jurisdictions with tax rates that differ from the U.S. tax rate and by discrete items that may occur in any given year but are not consistent from year to year. ​ The 2023 effective income tax rate was 15.1 percent compared to 18.0 percent for 2022.
The interest expense decrease was primarily driven by a decrease of $160 million from a smaller amount of weighted average principal outstanding during the year, resulting mainly from the use of proceeds from the aerospace disposal, and a decrease of $7 million from lower weighted average interest rates on outstanding debt during the year. ​ Tax Provision ​ The company’s effective tax rate is affected by recurring items such as income earned in non-U.S. jurisdictions with tax rates that differ from the U.S. tax rate and by discrete items that may occur in any given year but are not consistent from year to year. ​ The 2024 effective income tax rate was 24.9 percent compared to 23.8 percent for 2023.
Additional details about our debt are available in Note 15 accompanying the consolidated financial statements within Item 8 of this annual report. ​ Defined Benefit Pension Plans ​ In November 2023, the Trustee Board of the U.K. defined benefit pension plan entered into an agreement with an insurance company for a bulk annuity purchase, or “buy-in,” for its U.K. defined benefit pension plan to reduce retirement plan risk, while delivering promised benefits to plan participants.
See Note 4 for further details. ​ Defined Benefit Pension Plans ​ In November 2023, the Trustee Board of the U.K. defined benefit pension plan entered into an agreement with an insurance company for a bulk annuity purchase, or “buy-in,” for its U.K. defined benefit pension plan to reduce retirement plan risk, while delivering promised benefits to plan participants.
These amounts represented 81 percent and 83 percent of consolidated net sales for the years ended 2023 and 2022, respectively. The decrease year-over-year is primarily due to lower manufacturing costs, including lower aluminum costs of $1.29 billion, and lower freight expenses of $176 million.
These amounts represented 79 percent and 81 percent of consolidated net sales for the years ended 2024 and 2023, 24 Table of Contents respectively. The decrease year-over-year was primarily due to lower manufacturing costs, including lower aluminum costs of $281 million, and lower freight expenses of $53 million.
GAAP basis and should be considered in connection with the consolidated financial statements within Item 8 of this annual report. Non-U.S. GAAP measures should not be considered in isolation and should not be considered superior to, or a substitute for, financial measures calculated in accordance with U.S. GAAP. A presentation of earnings in accordance with U.S.
GAAP measures should not be considered in isolation and should not be considered superior to, or a substitute for, financial measures calculated in accordance with U.S. GAAP. A presentation of earnings in accordance with U.S.
See Note 4 for further details. ​ We have entered into several regional committed and uncommitted accounts receivable factoring programs with various financial institutions for certain of our accounts receivable.
See Note 15 for further details on the company’s borrowings, and additional amounts available. ​ We have entered into several regional accounts receivable factoring programs with various financial institutions for certain of our accounts receivables.
At December 31, 2023, approximately $1.69 billion was available under the company’s long-term, multi-currency committed revolving credit facilities. In addition to these facilities, the company had $196 million of committed short-term loans outstanding. The company also had approximately $964 million of short-term uncommitted credit facilities available at December 31, 2023, of which $13 million was outstanding and due on demand.
At December 31, 2024, approximately $1.73 billion was available under the company’s long-term, multi-currency committed revolving credit facilities. In addition to these facilities, the company had $109 million of committed short-term loans outstanding and a $24 million short-term finance lease outstanding.
Contributions to the company’s defined benefit pension plans were $42 million and $124 million for the years ended 2023 and 2022, respectively, and such contributions are expected to be approximately $75 million for the full year of 2024.
Contributions to the company’s defined benefit pension plans were $32 million and $42 million for the years ended 2024 and 2023, respectively, inclusive of contributions in 2023 to the Salaried Employees of Ball Aerospace & Technologies Corp. Pension Plan. Contributions are expected to be approximately $32 million for the full year of 2025.
In the event that we would need to utilize any of the cash held outside of the U.S. for purposes within the U.S., there are no material legal or other economic restrictions regarding the repatriation of cash from any of the countries outside the U.S. where we have cash, other than market liquidity constraints that limit the ability to convert Egyptian pounds held by the company in Egypt with a U.S. dollar equivalent value of $110 million into other currencies.
In the event that we would need to utilize any of the cash held outside of the U.S. for purposes within the U.S., there are no material legal or other economic restrictions regarding the repatriation of cash from any of the countries outside the U.S. where we have cash.
Investments in subsidiaries not forming part of the obligor group have also been eliminated. ​ 35 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ Year Ended ($ in millions) ​ December 31, 2023 December 31, 2022 ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 8,962 ​ $ 9,975 Gross profit (a) ​ ​ 1,074 ​ ​ 996 Net earnings ​ ​ 493 ​ ​ 635 Net earnings attributable to Ball Corporation ​ ​ 493 ​ ​ 635 (a) Gross profit is shown after depreciation and amortization related to cost of sales of $272 million and $261 million for the years ended December 31, 2023 and 2022, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ($ in millions) 2023 2022 ​ ​ ​ ​ ​ ​ ​ Current assets ​ $ 2,339 ​ $ 2,478 Noncurrent assets ​ ​ 15,955 ​ ​ 15,764 Current liabilities ​ ​ 5,163 ​ ​ 6,032 Noncurrent liabilities ​ ​ 10,857 ​ ​ 10,790 ​ Included in the amounts disclosed in the tables above, at December 31, 2023 and 2022, the obligor group held receivables due from other subsidiary companies of $768 million and $477 million, respectively, long-term notes receivable due from other subsidiary companies of $10.20 billion and $9.89 billion, respectively, payables due to other subsidiary companies of $1.83 billion and $2.22 billion, respectively, and long-term notes payable due to other subsidiary companies of $2.32 billion and $2.21 billion, respectively. ​ For the years ended December 31, 2023 and 2022, the obligor group recorded the following transactions with other subsidiary companies: sales to them of $1.13 billion and $1.50 billion, respectively, net credits from them of $38 million and $19 million, respectively, and net interest income from them of $344 million and $329 million, respectively.
As such, the following summarized financial information of the obligor group as of and for the year ended December 31, 2024, does not include results and balance sheet information of the historical aerospace reportable segment. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ($ in millions) ​ 2024 2023 ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 6,708 ​ $ 8,962 Gross profit (a) ​ ​ 807 ​ ​ 1,074 Net earnings ​ ​ 3,824 ​ ​ 493 Net earnings attributable to Ball Corporation ​ ​ 3,824 ​ ​ 493 (a) Gross profit is shown after depreciation and amortization related to cost of sales of $189 million and $272 million for the years ended December 31, 2024 and 2023, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ($ in millions) 2024 2023 ​ ​ ​ ​ ​ ​ ​ Current assets ​ $ 2,144 ​ $ 2,339 Noncurrent assets ​ ​ 14,698 ​ ​ 15,955 Current liabilities ​ ​ 4,096 ​ ​ 5,163 Noncurrent liabilities ​ ​ 8,415 ​ ​ 10,857 ​ 31 Table of Contents Included in the amounts disclosed in the tables above, at December 31, 2024 and 2023, the obligor group held receivables due from other subsidiary companies of $440 million and $768 million, respectively, long-term notes receivable due from other subsidiary companies of $10.03 billion and $10.20 billion, respectively, payables due to other subsidiary companies of $1.79 billion and $1.83 billion, respectively, and long-term notes payable due to other subsidiary companies of $2.20 billion and $2.32 billion, respectively. ​ For the years ended December 31, 2024 and 2023, the obligor group recorded the following transactions with other subsidiary companies: sales to them of $1.23 billion and $1.13 billion, respectively, net credits from them of $75 million and $38 million, respectively, and net interest income from them of $336 million and $344 million, respectively.
Words such as “expects,” “anticipates,” “estimates,” “believes,” and similar expressions typically identify forward looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied.
Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied.
See Note 4 for further details. ​ We have committed contracts to purchase raw materials and we align these purchase commitments with long-term sales contracts with our customers such that any commitment to purchase aluminum and other direct materials corresponds to a contractual sale.
We further intend to utilize our operating cash flows, when available, to repurchase Ball common stock or fund acquisitions that meet our rate of return criteria. ​ We have committed contracts to purchase raw materials and we align these purchase commitments with long-term sales contracts with our customers such that any commitment to purchase aluminum and other direct materials corresponds to a contractual sale.
During 2022, Ball issued $750 million of 6.875% senior notes due in 2028, redeemed $738 million of outstanding euro denominated 4.375% debt and completed the closing of its new revolving and term loan senior secured credit facilities that refinanced its existing senior secured credit facilities entered into in 2019. ​ The company’s senior credit facilities include a $1.35 billion term loan and long-term, multi-currency revolving facilities that mature in June 2027, which provide the company with up to the U.S. dollar equivalent of $1.75 billion.
Additionally, in the first quarter of 2024, Ball repaid at maturity the outstanding 0.875% euro denominated senior notes due in the amount of $817 million and prepaid $700 million of the Term A loan outstanding balance. ​ The company’s senior credit facilities include a $1.35 billion term loan and long-term, multi-currency revolving facilities that mature in June 2027, which provide the company with up to the U.S. dollar equivalent of $1.75 billion.
(BAE), 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.
On February 16, 2024, the company completed the divestiture of the aerospace business.
Management’s Discussion and Analysis of Financial Condition and Results of Operations of the company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed on February 21, 2023, for a comparison of our 2022 results of operations to the 2021 results. ​ Global Economic Environment ​ Recent data has indicated continued high inflation in the regions where we operate.
Management’s Discussion and Analysis of Financial Condition and Results of Operations of the company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed on February 20, 2024, for a comparison of our 2023 results of operations to the 2022 results. On February 16, 2024, the company completed the divestiture of its aerospace business.
As of December 31, 2023, the company could borrow an additional $2.36 billion under its long-term multi-currency committed revolving facilities and short-term uncommitted credit facilities without violating our existing debt covenants.
As of December 31, 2024, the company could borrow an additional $2.35 billion under its long-term multi-currency committed revolving facilities and short-term uncommitted credit facilities. Additional details about our debt are available in Note 15 accompanying the consolidated financial statements within Item 8 of this annual report.
While we have a diversified customer base, we sell a significant portion of our packaging products to major companies and brands, as well as to numerous regional customers. The overall global aluminum beverage and aerosol container industries are growing and are expected to continue to grow in the medium to long term.
This is evidenced by our high customer retention and our large number of long-term supply contracts. While we have a diversified customer base, we sell a significant portion of our packaging products to major companies and brands, as well as to numerous regional customers.
Because of our customer and supplier concentration, our business, financial condition and results of operations could be adversely affected by the loss, insolvency or bankruptcy of a major customer or supplier or a change in a supply agreement with a major customer or supplier, although our contract provisions generally mitigate the risk of customer loss, and our long-term relationships represent a known, stable customer base. ​ The majority of our aerospace business involves work under contracts, generally from one to five years in duration, as a prime contractor or subcontractor for various U.S. government agencies.
Because of our customer and supplier concentration, our business, financial condition and results of operations could be adversely affected by the loss, insolvency or bankruptcy of a major customer or supplier or a change in a supply agreement with a major customer or supplier, although our contract provisions generally mitigate the risk of customer loss, and our long-term relationships represent a known, stable customer base. ​ From time to time, we have evaluated and expect to continue to evaluate possible transactions that we believe will benefit the company and our shareholders, which may include strategic acquisitions, divestitures of parts of our company or equity investments.
In an elevated interest rate environment, payment terms with our customers and vendors become a more important element of total mix of information used to negotiate our contract terms.
We currently estimate a total cash tax of $875 million for the sale of the aerospace business. See Note 4 for further details. In a dynamic economic environment, payment terms with our customers and vendors become a more important element of total mix of information used to negotiate our contract terms.
The repurchases were completed using cash on hand, cash provided by operating activities, proceeds from the sale of businesses and available borrowings. On February 16, 2024, the company completed the divestiture of the aerospace business. The company 33 Table of Contents plans to accelerate capital return to shareholders via share repurchases as a result of the divestiture.
The repurchases were completed using cash on hand, cash provided by operating activities, proceeds from the sale of businesses and available borrowings.
As compared with the statutory U.S. federal income tax rate of 21 percent, the 2023 effective income tax rate was reduced by 8.2 percent for the impact of the U.S. research and development credit, by 4.7 percent for non-U.S. rate differences including tax holidays, and by 4.7 percent for the impact of U.S. taxes on non-U.S. earnings including the foreign tax credit.
As compared with the statutory U.S. federal income tax rate of 21 percent, the 2024 effective income tax rate was reduced by 2.1 percent for the impact of state and local taxes. This reduction was offset by an increase of 5.8 percent for currency exchange on revaluation of deferred tax balances.
In the third quarter of 2022, Ball settled the agreement and received a total of 4.34 million shares with the average price paid per share of $69.06. ​ Debt Facilities and Refinancing ​ Given our cash flow projections and unused credit facilities that are available until June 2027, our liquidity is strong and is expected to meet our ongoing cash and debt service requirements.
This repurchase authorization replaced the April 24, 2024, authorization. ​ Debt Facilities and Refinancing ​ Given our cash flow projections and unused credit facilities that are available until June 2027, our liquidity is strong and is expected to meet our ongoing cash and debt service requirements.
The primary customers for the products and services provided by our aerospace segment are U.S. government agencies or their prime contractors. ​ We purchase our raw materials from relatively few suppliers. We also have exposure to inflation, in particular the rising costs of raw materials, as well as other direct cost inputs.
The overall global aluminum packaging industry is growing and is expected to continue to grow in the medium to long term. ​ We purchase our raw materials from relatively few suppliers. We also have exposure to inflation, in particular the rising costs of raw materials, as well as other direct cost inputs.
Interest expense, excluding the effect of debt refinancing and other costs, as a percentage of average borrowings increased by approximately 140 basis points from 3.5 percent in 2022 to 4.9 percent in 2023 due to an increase in global interest rates.
Interest expense as a percentage of average borrowings decreased by approximately 10 basis points from 4.9 percent in 2023 to 4.8 percent in 2024.
These amounts represented 1 percent and less than 1 percent of consolidated net sales for 2023 and 2022, respectively. The amounts in 2023 included facility shutdown costs, transaction costs related to the sale of the aerospace business and a foreign exchange loss associated with the company’s Argentina business.
The amounts in 2023 included facility shutdown costs, a foreign exchange loss associated with the company’s Argentina business and transaction costs related to the sale of the aerospace business. Further details regarding business consolidation and other activities are provided in Note 6 . ​ Interest Income ​ Interest income was $68 million in 2024 compared to $36 million in 2023.
The company’s accounting policy around revenue recognition in its aerospace segment and further details of estimates used in revenue recognition in its aerospace segment can be found in Note 1 and Note 5 , respectively, to the consolidated financial statements within Item 8 of this annual report. ​ Defined Benefit Pension Plans ​ The company has defined benefit plans which require management to make assumptions relating to the long-term rate of return on plan assets, discount rates used to determine the present value of future obligations and expenses, salary inflation rates, mortality rates and other assumptions.
Detailed below is a discussion of why, to the extent the estimate is material, these estimates are subject to uncertainty and the sensitivity of the reported amounts to the methods and assumptions underlying the estimate’s calculation. ​ Defined Benefit Pension Plans ​ The company has defined benefit plans which require management to make assumptions relating to the long-term rate of return on plan assets, discount rates used to determine the present value of future obligations and expenses, salary inflation rates, mortality rates and other assumptions.
At December 31, 2023, days inventory outstanding was 32 Table of Contents 52 days; therefore, a change of one day in days inventory outstanding will impact cash flows provided by (used in) operating activities by $30 million. ​ Cash flows used in investing activities were $1,053 million in 2023 primarily driven by $1.05 billion in capital expenditures.
At December 31, 2024, days inventory outstanding was 58 days; therefore, a change of one day in days inventory on hand will impact cash flows provided by (used in) operating activities by $25 million. ​ Cash flows provided by investing activities were $5.00 billion in 2024, primarily driven by the initial cash proceeds received at close from the sale of the aerospace business of $5.42 billion, partially offset by capital expenditures of $484 million. ​ Cash flows used in financing activities were $4.79 billion in 2024, primarily driven by net repayments of long-term borrowings of $2.86 billion, repurchases of common stock of $1.71 billion and common stock dividends of $244 million.
Additional measures used to evaluate financial performance in the aerospace segment include contract revenue realization, award and incentive fees realized, proposal win rates and backlog. References to sales volume data represent units shipped. ​ Many of the above noted financial measurements are presented on a non-U.S.
References to sales volume data represent units shipped. ​ Many of the above noted financial measurements are presented on a non-U.S. GAAP basis and should be considered in connection with the consolidated financial statements within Item 8 of this annual report. Non-U.S.
See Note 4 for further details. ​ We sell our aluminum packaging products mainly to large, multinational beverage, personal care and household products companies with which we have developed long-term relationships. This is evidenced by our high customer retention and our large number of long-term supply contracts.
In the aluminum packaging industry, sales and earnings can be increased by reducing costs, increasing prices, developing new products, expanding volume and making strategic acquisitions. ​ We sell our aluminum packaging products mainly to large, multinational beverage, personal care and household products companies with which we have developed long-term relationships.
A company competing to be a prime contractor may, upon ultimate award of the contract to a competitor, become a subcontractor for the ultimate prime contracting company. ​ 26 Table of Contents RESULTS OF OPERATIONS ​ Management’s discussion and analysis for our results of operations on a consolidated and segment basis include a quantification of factors that had a material impact.
As part of any such initiatives, we may participate in processes being run by other companies or leading our own activities. ​ 23 Table of Contents RESULTS OF OPERATIONS ​ Management’s discussion and analysis for our results of operations on a consolidated and segment basis include a quantification of factors that had a material impact.
The following table summarizes our cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ($ in millions) 2023 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows provided by (used in) operating activities ​ $ 1,863 ​ $ 301 ​ $ 1,760 Cash flows provided by (used in) investing activities ​ ​ (1,053) ​ ​ (786) ​ ​ (1,639) Cash flows provided by (used in) financing activities ​ ​ (662) ​ ​ 485 ​ ​ (894) ​ Cash flows provided by operating activities were $1,863 million in 2023, primarily driven by net earnings of $711 million, depreciation and amortization of $686 million, working capital inflows of $360 million and business consolidation and other costs of $153 million.
The following table summarizes our cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ($ in millions) 2024 2023 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows provided by (used in) operating activities ​ $ 115 ​ $ 1,863 ​ $ 301 Cash flows provided by (used in) investing activities ​ ​ 5,003 ​ ​ (1,053) ​ ​ (786) Cash flows provided by (used in) financing activities ​ ​ (4,790) ​ ​ (662) ​ ​ 485 ​ Cash flows from the historical aerospace reportable segment are presented within each cash flow statement category in the consolidated statements of cash flows.
Total interest-bearing debt of $8.62 billion and $9.00 billion was outstanding at December 31, 2023 and 2022, respectively. On February 16, 2024, the company completed the divestiture of the aerospace business. We plan to repay a portion of outstanding debt as a result of the divestiture.
Total interest-bearing debt of $5.69 billion and $8.62 billion was outstanding at December 31, 2024 and 2023, respectively. ​ On February 14, 2024, Ball announced a public tender of the $1.00 billion 5.25% senior notes due July 2025 and the $750 million 4.875% senior notes due March 2026.
The decrease in SG&A expenses was primarily due to a $26 million increase in foreign exchange gains and a $23 million decrease in professional service costs. ​ Business Consolidation Costs and Other Activities ​ Business consolidation and other activities resulted in charges of $153 million in 2023 compared to charges of $71 million in 2022.
The increase was primarily due to higher compensation costs of $93 million, which included incremental cash bonuses and stock-based compensation cost from the successful sale of the aerospace business. ​ Business Consolidation and Other Activities ​ Business consolidation and other activities resulted in charges of $420 million in 2024 compared to charges of $133 million in 2023.
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Our packaging products are produced for a variety of end uses, are manufactured in facilities around the world and are competitive with other substrates, such as plastics and glass. In the aluminum packaging industry, sales and earnings can be increased by reducing costs, increasing prices, developing new products, expanding volumes and making strategic acquisitions.
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With a growth mindset and by pursuing operational excellence, we lean on our competitive strengths to reach our financial goals.
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We also provide aerospace and other technologies and services to governmental and commercial customers. In the third quarter of 2023, Ball entered into a Stock Purchase Agreement with BAE Systems, Inc. (BAE), 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.
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We are focused on maintaining our strong financial position by listening to and partnering with our global customers, delivering operational efficiencies and an innovative product portfolio from our best-in-class manufacturing facilities and returning value to shareholders via share repurchases and dividends.
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Intense competition and long operating cycles are key characteristics of the company’s aerospace and defense industry where it is common for work on major programs to be shared among a number of companies.
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At any time, we may be engaged in discussions or negotiations at various stages of development with respect to one or more possible transactions or may have entered into non-binding letters of intent.
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Amortization expense in 2023 and 2022 included $135 million for the amortization of acquired Rexam intangibles.
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Effective as of the first quarter of 2024, the company reports its financial performance in three reportable segments: (1) beverage packaging, North and Central America; (2) beverage packaging, Europe, Middle East and Africa (beverage packaging, EMEA) and (3) beverage packaging, South America. See Note 1 for further information on the basis of presentation.
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The increase compared to the same period in 2022 is primarily due to the company’s larger depreciable asset base, partially 27 Table of Contents offset by revised estimated useful lives of the company’s manufacturing equipment, buildings and certain assembly and test equipment, as well as the sale of the Russian aluminum beverage packaging business.
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As a result of the divestiture, prior periods disclosed herein reflect the aerospace business’ financial results as discontinued operations. ​ Global Economic Environment ​ Recent data has indicated that the rate of inflation is slowing in the majority of regions where we operate.
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See Note 10 of these consolidated financial statements for additional discussion of the reduction in depreciation resulting from the 2022 revised estimated useful lives.
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However, net sales attributable to the historical aerospace reportable segment are not included in the net sales figures in the table above. ​ Cost of Sales (Excluding Depreciation and Amortization) ​ Cost of sales, excluding depreciation and amortization, was $9,354 million in 2024 compared to $9,754 million in 2023.
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See Note 4 for details and quantification regarding the sale of the Russian operations. ​ Selling, General and Administrative ​ Selling, general and administrative (SG&A) expenses were $558 million in 2023 compared to $626 million in 2022. These amounts represented 4 percent of consolidated net sales for the years ending 2023 and 2022.
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The increase compared to the same period in 2023 was primarily due to the company’s larger depreciable asset base. ​ Selling, General and Administrative ​ Selling, general and administrative (SG&A) was $647 million in 2024 compared to $532 million in 2023.
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The amounts in 2022 included impairment losses on Russia’s long-lived asset group, the gain on sale of Ball’s Russian aluminum beverage packaging business, the gain on sale of Ball’s remaining equity method investment in Ball Metalpack, facility shutdown costs and a charge related to a donation to the Ball Foundation.
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These amounts represented 5 percent and 4 percent of consolidated net sales for the years ended 2024 and 2023, respectively.
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Further details and quantification regarding business consolidation costs and other activities are provided in Note 6 . ​ Interest Expense ​ Total interest expense was $459 million in 2023 compared to $330 million in 2022.
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These amounts represented 4 percent and 1 percent of consolidated net sales for 2024 and 2023, respectively. The amounts in 2024 primarily include a $233 million noncash charge to adjust the carrying value of the aluminum cups business to its estimated fair value less cost to sell and facility shutdown costs.
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These reductions were partially offset by an increase of 13.0 percent for changes in valuation allowances.
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These amounts represented less than 1 percent of consolidated net sales for the years ended 2024 and 2023. The increase in interest income was primarily due to the higher amount of cash on hand in 2024 from the sale of the aerospace business. ​ Interest Expense ​ Interest expense was $293 million in 2024 compared to $460 million in 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeA hypothetical 10 percent adverse change in the U.S. dollar’s currency exchange rates would increase our forecasted average debt balance by approximately $165 million. Actual changes in market prices or rates may differ from hypothetical changes. ​ Although Ball's functional currency in Argentina is the U.S. dollar, a portion of its transactions are denominated in pesos.
Biggest changeA hypothetical 10 percent adverse change in the U.S. dollar’s currency exchange rates would increase our forecasted average debt balance by approximately $73 million.
Second, we use certain derivative instruments, including option and forward contracts, as economic and cash flow hedges of commodity price risk where there are material differences between sales and purchase contracted pricing and volume. ​ Considering the effects of derivative instruments, the company’s ability to pass through certain raw material costs through contractual provisions, the market’s ability to accept price increases and the company’s commodity price exposures under its contract terms, a hypothetical 10 percent adverse change in the company’s aluminum prices would result in an estimated $3 million after-tax reduction in net earnings over a one-year period.
Second, we use certain derivative instruments, including option and forward contracts, as economic and cash flow hedges of commodity price risk where there are material differences between sales and purchase contracted pricing and volume. ​ Considering the effects of derivative instruments, the company’s ability to pass-through certain raw material costs through contractual provisions, the market’s ability to accept price increases and the company’s commodity price exposures under its contract terms, a hypothetical 10 percent adverse change in the company’s aluminum prices would result in an estimated $2 million after-tax reduction in net earnings over a one-year period.
Actual results may vary based on actual changes in market prices and rates and the timing of these changes. ​ 38 Table of Contents Currency Exchange Rate Risk ​ Our objective in managing exposure to currency fluctuations is to limit the exposure of cash flows and earnings from changes associated with currency exchange rate changes through the use of various derivative contracts.
Actual results may vary based on actual changes in market prices and rates and the timing of these changes. ​ 33 Table of Contents Currency Exchange Rate Risk ​ Our objective in managing exposure to currency fluctuations is to limit the exposure of cash flows and earnings from changes associated with currency exchange rate changes through the use of various derivative contracts.
Actual results may vary based on actual changes in market prices and rates. ​ Interest Rate Risk ​ Our objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs.
Actual results may vary based on actual changes in market prices and rates and the timing of these changes. ​ Interest Rate Risk ​ Our objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs.
Sales contracts are negotiated with customers to reflect cost changes and, where there is not an exchange pass-through arrangement, the company may use derivative instruments to manage significant currency exposures. ​ Considering the company’s derivative financial instruments outstanding at December 31, 2023, and the various currency exposures, a hypothetical 10 percent reduction (U.S. dollar strengthening) in currency exchange rates compared to the U.S. dollar would result in an estimated $15 million after-tax reduction in net earnings over a one-year period.
Sales contracts are negotiated with customers to reflect cost changes and, where there is not an exchange pass-through arrangement, the company may use derivative instruments to manage significant currency exposures. ​ Considering the company’s derivative financial instruments outstanding at December 31, 2024, and the various currency exposures, a hypothetical 10 percent reduction (U.S. dollar strengthening) in currency exchange rates compared to the U.S. dollar would result in an estimated $19 million after-tax reduction in net earnings over a one-year period.
Interest rate instruments held by the company at December 31, 2023, included pay-fixed interest rate swaps and options which effectively convert variable rate obligations to fixed-rate instruments. ​ Based on our interest rate exposure at December 31, 2023, assumed floating rate debt levels throughout the next 12 months and the effects of our existing derivative instruments, a 100-basis point increase in interest rates would result in an estimated $7 million after-tax reduction in net earnings over a one-year period.
Interest rate instruments held by the company at December 31, 2024, included pay-fixed interest rate swaps and options which effectively convert variable rate obligations to fixed-rate instruments. ​ Based on our interest rate exposure at December 31, 2024, assumed floating rate debt levels throughout the next 12 months and the effects of our existing derivative instruments, a 100-basis point increase in interest rates would result in an estimated $1 million after-tax reduction in net earnings over a one-year period.
Quantitative and Qualitative Disclosures About Market Risk ​ Financial Instruments and Risk Management ​ The company employs established risk management policies and procedures which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan.
Quantitative and Qualitative Disclosures About Market Risk ​ Financial Instruments and Risk Management ​ The company employs established risk management policies and procedures which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates, net investments in foreign operations and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan.
The company faces currency exposures in our global operations as a result of various factors including intercompany currency denominated loans, selling our products in various currencies, purchasing raw materials and equipment in various currencies and tax exposures not denominated in the functional currency.
The company faces currency exposures in our global operations as a result of various factors including intercompany currency denominated loans, selling our products in various currencies, purchasing raw materials and equipment in various currencies and tax exposures not denominated in the functional currency of the entity with the exposure.
As a result, Ball recorded a $22 million devaluation charge in business consolidation and other activities in the consolidated statement of earnings. Ball’s peso-denominated net assets in Argentina were approximately $20 million at December 31, 2023.
As a result, Ball recorded a $22 million devaluation charge in business consolidation and other activities in the consolidated statement of earnings for the year ended December 31, 2023. ​ The Egypt economy became highly inflationary at September 30, 2024, due to the country’s three year cumulative inflation rate exceeding 100 percent.
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The company is currently placing increased importance on managing its currency exchange rate risk in Argentina given the devaluation of the country’s currency. This devaluation and economic conditions in Argentina make it difficult to manage currency exchange rate risk, and have an adverse effect on the company’s results of operations.
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Actual results may vary based on actual changes in market prices and rates and the timing of these changes. ​ Although Ball's functional currency in Argentina is the U.S. dollar, a portion of its transactions are denominated in pesos.
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Ball’s Argentinean business, which is presented in its beverage packaging, South America, reportable operating segment, represented approximately 1 percent of the company's total comparable operating earnings for the year ended December 31, 2023.
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During the fourth quarter of 2023, Argentina suddenly devalued its peso relative to the U.S. dollar as one of the economic policies implemented by the new government with the goal of stabilizing and growing the economy.
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In addition, our plant in Argentina accounted for approximately 2 percent of the company's 105 billion global beverage can unit shipments for the year ended December 31, 2023. During the fourth quarter of 2023, Argentina suddenly devalued its peso relative to the U.S. dollar by approximately 55%.
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As such, effective October 1, 2024, the company’s Egyptian business will be accounted for as operating in a highly inflationary economy. ​ Net Investments in Foreign Operations Risk ​ The company is exposed to changes in foreign currencies impacting its net investments held in foreign subsidiaries.
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As of December 31, 2023, Ball’s Argentinean business had net asset exposure of $404 million, which consisted primarily of working capital and property, plant and equipment. ​ ​ ​ 39 Table of Contents
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The company’s objective in managing exposure to net investments in foreign operations is to limit the foreign exchange translation risk associated with its net investments in non-U.S. Dollar foreign entities. The company uses fixed-for-fixed cross currency swaps to achieve this objective.
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As of December 31, 2024, the company had three fixed-for-fixed cross currency swaps outstanding, with notional amounts totaling € 1.05 billion. A hypothetical 10 percent adverse change in the related foreign currency exchange rate would result in an estimated $62 million after-tax currency translation adjustment loss in other comprehensive earnings (loss). ​ ​ 34 Table of Contents

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