Crown Cork & Seal Company, Inc. (Issuer), a 100% owned subsidiary of the Company, has $350 principal amount of 7.375% senior notes due 2026 and $45 principal amount of 7.5% senior notes due 2096 outstanding that are fully and unconditionally guaranteed by Crown Holdings, Inc. (Parent). No other subsidiary guarantees the debt.

The following condensed combining financial statements:

•statements of comprehensive income for the three and nine months ended September 30, 2016 and 2015,

•balance sheets as of September 30, 2016 and December 31, 2015, and

•statements of cash flows for the nine months ended September 30, 2016 and 2015

are presented on the following pages to comply with the Company’s requirements under Rule 3-10 of Regulation S-X.

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended September 30, 2016

(in millions)



	Parent		Issuer			Non- Guarantors			Eliminations			Total Company
Net sales						$	2,326					$	2,326
Cost of products sold, excluding depreciation and amortization						1,838						1,838
Depreciation and amortization						63						63
Selling and administrative expense			$	3		87						90
Restructuring and other			9			11						20
Income from operations			(12		)	327						315
Loss on early extinguishments of debt						10						10
Net interest expense			27			29						56
Foreign exchange						(5		)				(5		)
Income/(loss) before income taxes			(39		)	293						254
Provision for / (benefit from) income taxes			(19		)	67						48
Equity earnings / (loss) in affiliates	$	183	180						$	(363	)	—
Net income	183		160			226			(363		)	206
Net income attributable to noncontrolling interests						(23		)				(23		)
Net income attributable to Crown Holdings	$	183	$	160		$	203		$	(363	)	$	183

Comprehensive income	$	143	$	113		$	165		$	(256	)	$	165
Comprehensive income attributable to noncontrolling interests						(22		)				(22		)
Comprehensive income attributable to Crown Holdings	$	143	$	113		$	143		$	(256	)	$	143

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended September 30, 2015

(in millions)



	Parent		Issuer			Non- Guarantors			Eliminations			Total Company
Net sales						$	2,460					$	2,460
Cost of products sold, excluding depreciation and amortization						1,984						1,984
Depreciation and amortization						61						61
Selling and administrative expense			$	3		91						94
Restructuring and other						40						40
Income from operations			(3		)	284						281
Net interest expense			25			39						64
Foreign exchange						9						9
Income/(loss) before income taxes			(28		)	236						208
Provision for / (benefit from) income taxes			(15		)	63						48
Equity earnings / (loss) in affiliates	$	141	110						$	(251	)	—
Net income	141		97			173			(251		)	160
Net income attributable to noncontrolling interests						(19		)				(19		)
Net income attributable to Crown Holdings	$	141	$	97		$	154		$	(251	)	$	141

Comprehensive income	$	9	$	35		$	38		$	(57	)	$	25
Comprehensive income attributable to noncontrolling interests						(16		)				(16		)
Comprehensive income attributable to Crown Holdings	$	9	$	35		$	22		$	(57	)	$	9

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the nine months ended September 30, 2016

(in millions)



	Parent		Issuer			Non- Guarantors			Eliminations			Total Company
Net sales						$	6,361					$	6,361
Cost of products sold, excluding depreciation and amortization						5,050						5,050
Depreciation and amortization						188						188
Selling and administrative expense			$	8		267						275
Restructuring and other			12			7						19
Income from operations			(20		)	849						829
Loss from early extinguishment of debt						37						37
Net interest expense			79			94						173
Foreign exchange						(22		)				(22		)
Income/(loss) before income taxes			(99		)	740						641
Provision for / (benefit from) income taxes			(42		)	193						151
Equity earnings / (loss) in affiliates	$	431	403						$	(834	)	—
Net income	431		346			547			(834		)	490
Net income attributable to noncontrolling interests						(59		)				(59		)
Net income attributable to Crown Holdings	$	431	$	346		$	488		$	(834	)	$	431

Comprehensive income	$	310	$	299		$	428		$	(666	)	$	371
Comprehensive income attributable to noncontrolling interests						(61		)				(61		)
Comprehensive income attributable to Crown Holdings	$	310	$	299		$	367		$	(666	)	$	310

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the nine months ended September 30, 2015

(in millions)



	Parent		Issuer			Non- Guarantors			Eliminations			Total Company
Net sales						$	6,735					$	6,735
Cost of products sold, excluding depreciation and amortization						5,487						5,487
Depreciation and amortization						174						174
Selling and administrative expense			$	8		283						291
Restructuring and other						57						57
Income from operations			(8		)	734						726
Loss from early extinguishment of debt						9						9
Net interest expense			76			118						194
Foreign exchange						14						14
Income/(loss) before income taxes			(84		)	593						509
Provision for / (benefit from) income taxes			(24		)	158						134
Equity earnings / (loss) in affiliates	$	327	298						$	(625	)	—
Net income	327		238			435			(625		)	375
Net income attributable to noncontrolling interests						(48		)				(48		)
Net income attributable to Crown Holdings	$	327	$	238		$	387		$	(625	)	$	327

Comprehensive Income	$	3	$	73		$	106		$	(136	)	$	46
Comprehensive income attributable to noncontrolling interests						(43		)				(43		)
Comprehensive income attributable to Crown Holdings	$	3	$	73		$	63		$	(136	)	$	3

CONDENSED COMBINING BALANCE SHEET

As of September 30, 2016

(in millions)



	Parent		Issuer		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents					$	526				$	526
Receivables, net					1,047					1,047
Inventories					1,300					1,300
Prepaid expenses and other current assets	$	1			216					217
Total current assets	1		—		3,089					3,090

Intercompany debt receivables					3,583		$	(3,583	)	—
Investments	3,098		$	2,835			(5,933		)	—
Goodwill and intangible assets					3,450					3,450
Property, plant and equipment, net					2,746					2,746
Other non-current assets			427		250					677
Total	$	3,099	$	3,262	$	13,118	$	(9,516	)	$	9,963

Liabilities and equity
Current liabilities
Short-term debt					$	49				$	49
Current maturities of long-term debt					121					121
Accounts payable and accrued liabilities	$	17	$	40	2,570					2,627
Total current liabilities	17		40		2,740					2,797

Long-term debt, excluding current maturities			392		4,705					5,097
Long-term intercompany debt	2,613		970				$	(3,583	)	—
Postretirement and pension liabilities					638					638
Other non-current liabilities			265		387					652
Commitments and contingent liabilities
Noncontrolling interests					310					310
Crown Holdings shareholders’ equity/(deficit)	469		1,595		4,338		(5,933		)	469
Total equity/(deficit)	469		1,595		4,648		(5,933		)	779
Total	$	3,099	$	3,262	$	13,118	$	(9,516	)	$	9,963

CONDENSED COMBINING BALANCE SHEET

As of December 31, 2015

(in millions)



	Parent		Issuer		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents					$	717				$	717
Receivables, net					912					912
Inventories					1,213					1,213
Prepaid expenses and other current assets			$	2	205					207
Total current assets	—		2		3,047					3,049

Intercompany debt receivables					3,654		$	(3,654	)	—
Investments	$	2,937	2,490				(5,427		)	—
Goodwill and intangible assets					3,580					3,580
Property, plant and equipment, net					2,699					2,699
Other non-current assets			430		262					692
Total	$	2,937	$	2,922	$	13,242	$	(9,081	)	$	10,020

Liabilities and equity
Current liabilities
Short-term debt					$	54				$	54
Current maturities of long-term debt					209					209
Accounts payable and accrued liabilities	$	24	$	41	2,580					2,645
Total current liabilities	24		41		2,843					2,908

Long-term debt, excluding current maturities			391		4,864					5,255
Long-term intercompany debt	2,769		885				$	(3,654	)	—
Postretirement and pension liabilities					767					767
Other non-current liabilities			309		346					655
Commitments and contingent liabilities
Noncontrolling interests					291					291
Crown Holdings shareholders’ equity/(deficit)	144		1,296		4,131		(5,427		)	144
Total equity/(deficit)	144		1,296		4,422		(5,427		)	435
Total	$	2,937	$	2,922	$	13,242	$	(9,081	)	$	10,020

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2016

(in millions)



	Parent			Issuer			Non- Guarantors			Eliminations			Total Company
Net cash provided by/(used for) operating activities	$	6		$	(86	)	$	466		$	(10	)	$	376
Cash flows from investing activities
Capital expenditures							(244		)				(244		)
Intercompany investing activities	150									(150		)	—
Other							16						16
Net cash provided by/(used for) investing activities	150			—			(228		)	(150		)	(228		)
Cash flows from financing activities
Proceeds from long-term debt							1,379						1,379
Payments of long-term debt							(1,810		)				(1,810		)
Net change in revolving credit facility and short-term debt							108						108
Net change in long-term intercompany balances	(156		)	86			70						—
Debt issue costs							(16		)				(16		)
Common stock issued	8												8
Common stock repurchased	(8		)										(8		)
Dividends paid							(160		)	160			—
Contributions from noncontrolling interests							1						1
Dividend paid to noncontrolling interests							(43		)				(43		)
Foreign exchange derivatives related to debt							53						53
Net cash provided by/(used for) financing activities	(156		)	86			(418		)	160			(328		)
Effect of exchange rate changes on cash and cash equivalents							(11		)				(11		)
Net change in cash and cash equivalents	—			—			(191		)	—			(191		)
Cash and cash equivalents at January 1							717						717
Cash and cash equivalents at September 30	$	—		$	—		$	526		$	—		$	526

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2015

(in millions)



	Parent			Issuer			Non- Guarantors			Eliminations			Total Company
Net cash provided by/(used for) operating activities	$	24		$	(65	)	$	356					$	315
Cash flows from investing activities
Capital expenditures							(176		)				(176		)
Purchase of business							(1,207		)				(1,207		)
Proceeds from sale of business							33						33
Intercompany investing activities	(865		)	9			865			$	(9	)	—
Net investment hedge settlements							(11		)				(11		)
Other							(13		)				(13		)
Net cash provided by/(used for) investing activities	(865		)	9			(509		)	(9		)	(1,374		)
Cash flows from financing activities
Proceeds from long-term debt							1,435						1,435
Payments of long-term debt							(780		)				(780		)
Net change in revolving credit facility and short-term debt							34						34
Net change in long-term intercompany balances	845			56			(901		)				—
Debt issue costs							(18		)				(18		)
Common stock issued	5												5
Common stock repurchased	(9		)										(9		)
Dividends paid							(9		)	9			—
Contributions from noncontrolling interests							3						3
Dividend paid to noncontrolling interests							(21		)				(21		)
Foreign exchange derivatives related to debt							(38		)				(38		)
Net cash provided by/(used for) financing activities	841			56			(295		)	9			611
Effect of exchange rate changes on cash and cash equivalents							(51		)				(51		)
Net change in cash and cash equivalents	—			—			(499		)	—			(499		)
Cash and cash equivalents at January 1							965						965
Cash and cash equivalents at September 30	$	—		$	—		$	466		$	—		$	466

Crown Americas, LLC, Crown Americas Capital Corp. II and Crown Americas Capital Corp. III (collectively, the Issuer), 100% owned subsidiaries of the Company, have outstanding $1,000 principal amount of 4.5% senior notes due 2023 and $400 principal amount of 4.25% senior notes due 2026, which are fully and unconditionally guaranteed by Crown Holdings, Inc. (Parent) and substantially all of its subsidiaries in the United States. The guarantors are 100% owned by the Company and the guarantees are made on a joint and several basis.

The following condensed combining financial statements:


•	statements of comprehensive income for the three and nine months ended September 30, 2016 and 2015,


•	balance sheets as of September 30, 2016 and December 31, 2015, and


•	statements of cash flows for the nine months ended September 30, 2016 and 2015

are presented on the following pages to comply with the Company’s requirements under Rule 3-10 of Regulation S-X.

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended September 30, 2016

(in millions)



	Parent		Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net sales						$	513		$	1,813					$	2,326
Cost of products sold, excluding depreciation and amortization						404			1,434						1,838
Depreciation and amortization						9			54						63
Selling and administrative expense			$	2		34			54						90
Restructuring and other						10			10						20
Income from operations			(2		)	56			261						315
Loss from early extinguishments of debt			5						5						10
Net interest expense			15			22			19						56
Technology royalty						(13		)	13						—
Foreign exchange			9						(5		)	$	(9	)	(5		)
Income/(loss) before income taxes			(31		)	47			229			9			254
Provision for / (benefit from) income taxes			(12		)	13			44			3			48
Equity earnings / (loss) in affiliates	$	183	68			126						(377		)	—
Net income	183		49			160			185			(371		)	206
Net income attributable to noncontrolling interests									(23		)				(23		)
Net income attributable to Crown Holdings	$	183	$	49		$	160		$	162		$	(371	)	$	183

Comprehensive income	$	143	$	33		$	113		$	169		$	(293	)	$	165
Comprehensive income attributable to noncontrolling interests									(22		)				(22		)
Comprehensive income attributable to Crown Holdings	$	143	$	33		$	113		$	147		$	(293	)	$	143

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the three months ended September 30, 2015

(in millions)



	Parent		Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net sales						$	527		$	1,933					$	2,460
Cost of products sold, excluding depreciation and amortization						415			1,569						1,984
Depreciation and amortization						8			53						61
Selling and administrative expense			$	2		37			55						94
Restructuring and other						3			37						40
Income from operations			(2		)	64			219						281
Net interest expense			23			23			18						64
Technology royalty						(13		)	13						—
Foreign exchange			3						9			$	(3	)	9
Income/(loss) before income taxes			(28		)	54			179			3			208
Provision for / (benefit from) income taxes			(11		)	15			43			1			48
Equity earnings / (loss) in affiliates	$	141	70			58						(269		)	—
Net income	141		53			97			136			(267		)	160
Net income attributable to noncontrolling interests									(19		)				(19		)
Net income attributable to Crown Holdings	$	141	$	53		$	97		$	117		$	(267	)	$	141

Comprehensive income	$	9	$	48		$	35		$	(25	)	$	(42	)	$	25
Comprehensive income attributable to noncontrolling interests									(16		)				(16		)
Comprehensive income attributable to Crown Holdings	$	9	$	48		$	35		$	(41	)	$	(42	)	$	9

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the nine months ended September 30, 2016

(in millions)



	Parent		Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net sales						$	1,468		$	4,893					$	6,361
Cost of products sold, excluding depreciation and amortization						1,174			3,876						5,050
Depreciation and amortization						25			163						188
Selling and administrative expense			$	7		102			166						275
Restructuring and other			(5		)	14			10						19
Income from operations			(2		)	153			678						829
Loss from early extinguishment of debt			32						5						37
Net interest expense			50			65			58						173
Technology royalty						(32		)	32						—
Foreign exchange			24						(22		)	$	(24	)	(22		)
Income/(loss) before income taxes			(108		)	120			605			24			641
Provision for / (benefit from) income taxes			(41		)	42			142			8			151
Equity earnings / (loss) in affiliates	$	431	165			268						(864		)	—
Net income	431		98			346			463			(848		)	490
Net income attributable to noncontrolling interests									(59		)				(59		)
Net income attributable to Crown Holdings	$	431	$	98		$	346		$	404		$	(848	)	$	431

Comprehensive Income	$	310	$	88		$	299		$	378		$	(704	)	$	371
Comprehensive income attributable to noncontrolling interests									(61		)				(61		)
Comprehensive income attributable to Crown Holdings	$	310	$	88		$	299		$	317		$	(704	)	$	310

CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME

For the nine months ended September 30, 2015

(in millions)



	Parent		Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net sales						$	1,555		$	5,180					$	6,735
Cost of products sold, excluding depreciation and amortization						1,235			4,252						5,487
Depreciation and amortization						24			150						174
Selling and administrative expense			$	7		115			169						291
Restructuring and other						5			52						57
Income from operations			(7		)	176			557						726
Loss from early extinguishment of debt			9												9
Net interest expense			67			69			58						194
Technology royalty						(32		)	32						—
Foreign exchange			11						14			$	(11	)	14
Income/(loss) before income taxes			(94		)	139			453			11			509
Provision for / (benefit from) income taxes			(36		)	61			105			4			134
Equity earnings / (loss) in affiliates	$	327	158			160						(645		)	—
Net income	327		100			238			348			(638		)	375
Net income attributable to noncontrolling interests									(48		)				(48		)
Net income attributable to Crown Holdings	$	327	$	100		$	238		$	300		$	(638	)	$	327

Comprehensive income	$	3	$	101		$	73		$	(5	)	$	(126	)	$	46
Comprehensive income attributable to noncontrolling interests									(43		)				(43		)
Comprehensive income attirbutable to Crown Holdings	$	3	$	101		$	73		$	(48	)	$	(126	)	$	3

CONDENSED COMBINING BALANCE SHEET

As of September 30, 2016

(in millions)



	Parent		Issuer		Guarantors		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents			$	48	$	1	$	477				$	526
Receivables, net			3		11		1,033					1,047
Intercompany receivables					35		6		$	(41	)	—
Inventories					304		996					1,300
Prepaid expenses and other current assets	$	1	2		8		206					217
Total current assets	1		53		359		2,718		(41		)	3,090

Intercompany debt receivables			2,815		3,412		697		(6,924		)	—
Investments	3,098		2,335		883				(6,316		)	—
Goodwill and intangible assets					469		2,981					3,450
Property, plant and equipment, net			1		450		2,295					2,746
Other non-current assets			3		450		224					677
Total	$	3,099	$	5,207	$	6,023	$	8,915	$	(13,281	)	$	9,963

Liabilities and equity
Current liabilities
Short-term debt							$	49				$	49
Current maturities of long-term debt			$	80			41					121
Accounts payable and accrued liabilities	$	17	19		$	596	1,995					2,627
Intercompany payables					6		35		$	(41	)	—
Total current liabilities	17		99		602		2,120		(41		)	2,797

Long-term debt, excluding current maturities			2,437		392		2,268					5,097
Long-term intercompany debt	2,613		1,324		2,795		192		(6,924		)	—
Postretirement and pension liabilities					344		294					638
Other non-current liabilities					295		357					652
Commitments and contingent liabilities
Noncontrolling interests							310					310
Crown Holdings shareholders’ equity/(deficit)	469		1,347		1,595		3,374		(6,316		)	469
Total equity/(deficit)	469		1,347		1,595		3,684		(6,316		)	779
Total	$	3,099	$	5,207	$	6,023	$	8,915	$	(13,281	)	$	9,963

CONDENSED COMBINING BALANCE SHEET

As of December 31, 2015

(in millions)



	Parent		Issuer		Guarantors		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents			$	104			$	613				$	717
Receivables, net					$	23	889					912
Intercompany receivables					30		2		$	(32	)	—
Inventories					291		922					1,213
Prepaid expenses and other current assets			2		7		198					207
Total current assets			106		351		2,624		(32		)	3,049

Intercompany debt receivables			3,111		3,471		681		(7,263		)	—
Investments	$	2,937	2,199		804				(5,940		)	—
Goodwill and intangible assets					471		3,109					3,580
Property, plant and equipment, net			1		390		2,308					2,699
Other non-current assets			6		457		229					692
Total	$	2,937	$	5,423	$	5,944	$	8,951	$	(13,235	)	$	10,020

Liabilities and equity
Current liabilities
Short-term debt							$	54				$	54
Current maturities of long-term debt			$	90			119					209
Accounts payable and accrued liabilities	$	24	47		$	526	2,048					2,645
Intercompany payables					2		30		$	(32	)	—
Total current liabilities	24		137		528		2,251		(32		)	2,908

Long-term debt, excluding current maturities			2,759		391		2,105					5,255
Long-term intercompany debt	2,769		1,268		3,041		185		(7,263		)	—
Postretirement and pension liabilities					377		390					767
Other non-current liabilities					311		344					655
Commitments and contingent liabilities
Noncontrolling interests							291					291
Crown Holdings shareholders’ equity/(deficit)	144		1,259		1,296		3,385		(5,940		)	144
Total equity/(deficit)	144		1,259		1,296		3,676		(5,940		)	435
Total	$	2,937	$	5,423	$	5,944	$	8,951	$	(13,235	)	$	10,020

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2016

(in millions)



	Parent			Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net provided by/(used for) operating activities	$	6		$	(61	)	$	108		$	353		$	(30	)	$	376
Cash flows from investing activities
Capital expenditures							(81		)	(163		)				(244		)
Intercompany investing activities	150						150						(300		)	—
Other							11			5						16
Net cash provided by/(used for) investing activities	150			—			80			(158		)	(300		)	(228		)
Cash flows from financing activities
Proceeds from long-term debt				700						679						1,379
Payments of long-term debt				(1,100		)				(710		)				(1,810		)
Net change in revolving credit facility and short-term debt				60						48						108
Net change in long-term intercompany balances	(156		)	352			(187		)	(9		)				—
Debt issue costs				(7		)				(9		)				(16		)
Common stock issued	8															8
Common stock repurchased	(8		)													(8		)
Dividends paid										(330		)	330			—
Contributions from noncontrolling interests										1						1
Dividends paid to noncontrolling interests										(43		)				(43		)
Foreign exchange derivatives related to debt										53						53
Net cash provided by/(used for) financing activities	(156		)	5			(187		)	(320		)	330			(328		)
Effect of exchange rate changes on cash and cash equivalents										(11		)				(11		)
Net change in cash and cash equivalents	—			(56		)	1			(136		)	—			(191		)
Cash and cash equivalents at January 1				104						613						717
Cash and cash equivalents at September 30	$	—		$	48		$	1		$	477		$	—		$	526

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2015

(in millions)



	Parent			Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net provided by/(used for) operating activities	$	24		$	(53	)	$	76		$	268					$	315
Cash flows from investing activities
Capital expenditures							(30		)	(146		)				(176		)
Purchase of business										(1,207		)				(1,207		)
Proceeds from sale of business										33						33
Intercompany investing activities	(865		)	7			9			865			$	(16	)	—
Net investment hedge settlements				(11		)										(11		)
Other							(9		)	(4		)				(13		)
Net cash provided by/(used for) investing activities	(865		)	(4		)	(30		)	(459		)	(16		)	(1,374		)
Cash flows from financing activities
Proceeds from long-term debt				750						685						1,435
Payments of long-term debt				(675		)				(105		)				(780		)
Net change in revolving credit facility and short-term debt										34						34
Net change in long-term intercompany balances	845			(104		)	(46		)	(695		)				—
Debt issue costs				(10		)				(8		)				(18		)
Common stock issued	5															5
Common stock repurchased	(9		)													(9		)
Dividends paid										(16		)	16			—
Contributions from noncontrolling interests										3						3
Dividends paid to noncontrolling interests										(21		)				(21		)
Foreign exchange derivatives related to debt										(38		)				(38		)
Net cash provided by/(used for) financing activities	841			(39		)	(46		)	(161		)	16			611
Effect of exchange rate changes on cash and cash equivalents										(51		)				(51		)
Net change in cash and cash equivalents	—			(96		)	—			(403		)	—			(499		)
Cash and cash equivalents at January 1				128						837						965
Cash and cash equivalents at September 30	$	—		$	32		$	—		$	434		$	—		$	466