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 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, 2017 and 2016,

•balance sheets as of September 30, 2017 and December 31, 2016, and

•statements of cash flows for the nine months ended September 30, 2017 and 2016

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, 2017

(in millions)



	Parent		Issuer			Non- Guarantors			Eliminations			Total Company
Net sales						$	2,468					$	2,468
Cost of products sold, excluding depreciation and amortization						1,956						1,956
Depreciation and amortization						63						63
Selling and administrative expense			$	1		89						90
Restructuring and other						12						12
Income from operations			(1		)	348						347
Net interest expense			23			37						60
Income/(loss) before income taxes			(24		)	311						287
Provision for / (benefit from) income taxes			(15		)	94						79
Equity earnings / (loss) in affiliates	$	177	155						$	(332	)	—
Net income	177		146			217			(332		)	208
Net income attributable to noncontrolling interests						(31		)				(31		)
Net income attributable to Crown Holdings	$	177	$	146		$	186		$	(332	)	$	177

Comprehensive income	$	220	$	184		$	261		$	(413	)	$	252
Comprehensive income attributable to noncontrolling interests						(32		)				(32		)
Comprehensive income attributable to Crown Holdings	$	220	$	184		$	229		$	(413	)	$	220

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 from early extinguishment 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 nine months ended September 30, 2017

(in millions)



	Parent		Issuer			Non- Guarantors			Eliminations			Total Company
Net sales						$	6,530					$	6,530
Cost of products sold, excluding depreciation and amortization						5,194						5,194
Depreciation and amortization						183						183
Selling and administrative expense			$	5		267						272
Restructuring and other			(1		)	27						26
Income from operations			(4		)	859						855
Loss from early extinguishment of debt						7						7
Net interest expense			69			108						177
Foreign exchange						4						4
Income/(loss) before income taxes			(73		)	740						667
Provision for / (benefit from) income taxes			(33		)	211						178
Equity earnings / (loss) in affiliates	$	412	384						$	(796	)	—
Net income	412		344			529			(796		)	489
Net income attributable to noncontrolling interests						(77		)				(77		)
Net income attributable to Crown Holdings	$	412	$	344		$	452		$	(796	)	$	412

Comprehensive income	$	687	$	429		$	807		$	(1,156	)	$	767
Comprehensive income attributable to noncontrolling interests						(80		)				(80		)
Comprehensive income attributable to Crown Holdings	$	687	$	429		$	727		$	(1,156	)	$	687

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 BALANCE SHEET

As of September 30, 2017

(in millions)



	Parent		Issuer			Non- Guarantors		Eliminations				Total Company
Assets
Current assets
Cash and cash equivalents						$	374					$	374
Receivables, net						1,098						1,098
Inventories						1,430						1,430
Prepaid expenses and other current assets	$	1			250						251
Total current assets	1		—			3,152						3,153

Intercompany debt receivables						3,568		$	(3,568	)		—
Investments	3,324		3,348					(6,672		)		—
Goodwill and intangible assets, net						3,562						3,562
Property, plant and equipment, net						3,066						3,066
Other non-current assets			513			202						715
Total	$	3,325	$	3,861		$	13,550	$	(10,240	)		$	10,496

Liabilities and equity
Current liabilities
Short-term debt						$	50					$	50
Current maturities of long-term debt						68						68
Accounts payable and accrued liabilities	$	18	$	40		2,861						2,919
Total current liabilities	18		40			2,979						3,037

Long-term debt, excluding current maturities			392			4,722						5,114
Long-term intercompany debt	2,509		1,059					$	(3,568	)		—
Postretirement and pension liabilities						519						519
Other non-current liabilities			347			367						714
Commitments and contingent liabilities
Noncontrolling interests						314						314
Crown Holdings shareholders’ equity/(deficit)	798		2,023			4,649		(6,672		)		798
Total equity/(deficit)	798		2,023			4,963		(6,672		)		1,112
Total	$	3,325	$	3,861		$	13,550	$	(10,240	)		$	10,496

CONDENSED COMBINING BALANCE SHEET

As of December 31, 2016

(in millions)



	Parent		Issuer		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents					$	559				$	559
Receivables, net					865					865
Inventories					1,245					1,245
Prepaid expenses and other current assets	$	1			171					172
Total current assets	1		—		2,840					2,841

Intercompany debt receivables					3,447		$	(3,447	)	—
Investments	2,857		$	2,915			(5,772		)	—
Goodwill and intangible assets, net					3,263					3,263
Property, plant and equipment, net					2,820					2,820
Other non-current assets			447		228					675
Total	$	2,858	$	3,362	$	12,598	$	(9,219	)	$	9,599

Liabilities and equity
Current liabilities
Short-term debt					$	33				$	33
Current maturities of long-term debt					161					161
Accounts payable and accrued liabilities	$	23	$	40	2,639					2,702
Total current liabilities	23		40		2,833					2,896

Long-term debt, excluding current maturities			392		4,325					4,717
Long-term intercompany debt	2,469		978				$	(3,447	)	—
Postretirement and pension liabilities					620					620
Other non-current liabilities			358		340					698
Commitments and contingent liabilities
Noncontrolling interests					302					302
Crown Holdings shareholders’ equity/(deficit)	366		1,594		4,178		(5,772		)	366
Total equity/(deficit)	366		1,594		4,480		(5,772		)	668
Total	$	2,858	$	3,362	$	12,598	$	(9,219	)	$	9,599

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2017

(in millions)



	Parent			Issuer			Non- Guarantors			Eliminations			Total Company
Net cash provided by/(used for) operating activities	$	(4	)	$	(23	)	$	551		$	(36	)	$	488
Cash flows from investing activities
Capital expenditures							(282		)				(282		)
Proceeds from sale of property, plant and equipment							8						8
Intercompany investing activities	235									(235		)	—
Other							(15		)				(15		)
Net cash provided by/(used for) investing activities	235						(289		)	(235		)	(289		)
Cash flows from financing activities
Proceeds from long-term debt							1,054						1,054
Payments of long-term debt							(1,100		)				(1,100		)
Net change in revolving credit facility and short-term debt							22						22
Net change in long-term intercompany balances	100			23			(123		)				—
Debt issue costs							(15		)				(15		)
Common stock issued	8												8
Common stock repurchased	(339		)										(339		)
Dividends paid							(271		)	271			—
Dividend paid to noncontrolling interests							(68		)				(68		)
Foreign exchange derivatives related to debt							38						38
Net cash provided by/(used for) financing activities	(231		)	23			(463		)	271			(400		)
Effect of exchange rate changes on cash and cash equivalents							16						16
Net change in cash and cash equivalents	—			—			(185		)	—			(185		)
Cash and cash equivalents at January 1							559						559
Cash and cash equivalents at September 30	$	—		$	—		$	374		$	—		$	374

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		)
Proceeds from sale of property, plant and equipment							6						6
Intercompany investing activities	150									(150		)	—
Other							10						10
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			—
Contribution 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

Crown Americas, LLC, Crown Americas Capital Corp. IV and Crown Americas Capital Corp. V (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, 2017 and 2016,


•	balance sheets as of September 30, 2017 and December 31, 2016, and


•	statements of cash flows for the nine months ended September 30, 2017 and 2016

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, 2017

(in millions)



	Parent		Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net sales						$	512		$	1,956					$	2,468
Cost of products sold, excluding depreciation and amortization						407			1,549						1,956
Depreciation and amortization						10			53						63
Selling and administrative expense			$	3		31			56						90
Restructuring and other									12						12
Income from operations			(3		)	64			286						347
Net interest expense			16			25			19						60
Technology royalty						(15		)	15						—
Foreign exchange			23									$	(23	)	—
Income/(loss) before income taxes			(42		)	54			252			23			287
Provision for / (benefit from) income taxes			(16		)	18			69			8			79
Equity earnings / (loss) in affiliates	$	177	67			110						(354		)	—
Net income	177		41			146			183			(339		)	208
Net income attributable to noncontrolling interests									(31		)				(31		)
Net income attributable to Crown Holdings	$	177	$	41		$	146		$	152		$	(339	)	$	177

Comprehensive income	$	220	$	37		$	184		$	245		$	(434	)	$	252
Comprehensive income attributable to noncontrolling interests									(32		)				(32		)
Comprehensive income attributable to Crown Holdings	$	220	$	37		$	184		$	213		$	(434	)	$	220

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 extinguishment 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 nine months ended September 30, 2017

(in millions)



	Parent		Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net sales						$	1,462		$	5,068					6,530
Cost of products sold, excluding depreciation and amortization						1,181			4,013						5,194
Depreciation and amortization						30			153						183
Selling and administrative expense			$	8		99			165						272
Restructuring and other						2			24						26
Income from operations			(8		)	150			713						855
Loss from early extinguishment of debt			6						1						7
Net interest expense			49			69			59						177
Technology royalty						(33		)	33						—
Foreign exchange			78			(1		)	5			$	(78	)	4
Income/(loss) before income taxes			(141		)	115			615			78			667
Provision for / (benefit from) income taxes			(54		)	38			167			27			178
Equity earnings / (loss) in affiliates	$	412	167			267						(846		)	—
Net income	412		80			344			448			(795		)	489
Net income attributable to noncontrolling interests									(77		)				(77		)
Net income attributable to Crown Holdings	412		80			344			371			(795		)	412

Comprehensive Income	$	687	$	83		$	429		$	787		$	(1,219	)	$	767
Comprehensive income attributable to noncontrolling interests									(80		)				(80		)
Comprehensive income attributable to Crown Holdings	$	687	$	83		$	429		$	707		$	(1,219	)	$	687

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 attirbutable to Crown Holdings	$	310	$	88		$	299		$	317		$	(704	)	$	310

CONDENSED COMBINING BALANCE SHEET

As of September 30, 2017

(in millions)



	Parent		Issuer		Guarantors		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents			$	47			$	327				$	374
Receivables, net					$	20	1,078					1,098
Intercompany receivables					35		8		$	(43	)	—
Inventories					345		1,085					1,430
Prepaid expenses and other current assets	$	1	1		17		232					251
Total current assets	1		48		417		2,730		(43		)	3,153

Intercompany debt receivables			2,818		3,379		1,032		(7,229		)	—
Investments	3,324		2,448		1,265				(7,037		)	—
Goodwill and intangible assets, net					467		3,095					3,562
Property, plant and equipment, net			1		529		2,536					3,066
Other non-current assets			11		545		159					715
Total	$	3,325	$	5,326	$	6,602	$	9,552	$	(14,309	)	$	10,496

Liabilities and equity
Current liabilities
Short-term debt							$	50				$	50
Current maturities of long-term debt			$	18	$	3	47					68
Accounts payable and accrued liabilities	$	18	17		626		2,258					2,919
Intercompany payables					8		35		$	(43	)	—
Total current liabilities	18		35		637		2,390		(43		)	3,037

Long-term debt, excluding current maturities			2,128		413		2,573					5,114
Long-term intercompany debt	2,509		1,702		2,782		236		(7,229		)	—
Postretirement and pension liabilities					391		128					519
Other non-current liabilities					356		358					714
Commitments and contingent liabilities
Noncontrolling interests							314					314
Crown Holdings shareholders’ equity/(deficit)	798		1,461		2,023		3,553		(7,037		)	798
Total equity/(deficit)	798		1,461		2,023		3,867		(7,037		)	1,112
Total	$	3,325	$	5,326	$	6,602	$	9,552	$	(14,309	)	$	10,496

CONDENSED COMBINING BALANCE SHEET

As of December 31, 2016

(in millions)



	Parent		Issuer		Guarantors		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents			$	83			$	476				$	559
Receivables, net			3		$	20	842					865
Intercompany receivables					33		6		$	(39	)	—
Inventories					313		932					1,245
Prepaid expenses and other current assets	$	1	2		13		156					172
Total current assets	1		88		379		2,412		(39		)	2,841

Intercompany debt receivables			2,703		3,234		690		(6,627		)	—
Investments	2,857		2,319		954				(6,130		)	—
Goodwill and intangible assets, net					469		2,794					3,263
Property, plant and equipment, net			1		496		2,323					2,820
Other non-current assets			3		464		208					675
Total	$	2,858	$	5,114	$	5,996	$	8,427	$	(12,796	)	$	9,599

Liabilities and equity
Current liabilities
Short-term debt							$	33				$	33
Current maturities of long-term debt			$	118			43					161
Accounts payable and accrued liabilities	$	23	32		$	577	2,070					2,702
Intercompany payables					6		33		$	(39	)	—
Total current liabilities	23		150		583		2,179		(39		)	2,896

Long-term debt, excluding current maturities			2,258		392		2,067					4,717
Long-term intercompany debt	2,469		1,328		2,624		206		(6,627		)	—
Postretirement and pension liabilities					422		198					620
Other non-current liabilities					381		317					698
Commitments and contingent liabilities
Noncontrolling interests							302					302
Crown Holdings shareholders’ equity/(deficit)	366		1,378		1,594		3,158		(6,130		)	366
Total equity/(deficit)	366		1,378		1,594		3,460		(6,130		)	668
Total	$	2,858	$	5,114	$	5,996	$	8,427	$	(12,796	)	$	9,599

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2017

(in millions)



	Parent			Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net provided by/(used for) operating activities	$	(4	)	$	(46	)	$	90		$	525		$	(77	)	$	488
Cash flows from investing activities
Capital expenditures							(91		)	(191		)				(282		)
Proceeds from sale of property, plant and equipment							1			7						8
Intercompany investing activities	235												(235		)	—
Other							(20		)	5						(15		)
Net cash provided by/(used for) investing activities	235			—			(110		)	(179		)	(235		)	(289		)
Cash flows from financing activities
Proceeds from long-term debt				750			9			295						1,054
Payments of long-term debt				(1,010		)	(2		)	(88		)				(1,100		)
Net change in revolving credit facility and short-term debt				25						(3		)				22
Net change in long-term intercompany balances	100			259			13			(372		)				—
Debt issue costs				(14		)				(1		)				(15		)
Common stock issued	8															8
Common stock repurchased	(339		)													(339		)
Dividends paid										(312		)	312			—
Dividends paid to noncontrolling interests										(68		)				(68		)
Foreign exchange derivatives related to debt										38						38
Net cash provided by/(used for) financing activities	(231		)	10			20			(511		)	312			(400		)
Effect of exchange rate changes on cash and cash equivalents										16						16
Net change in cash and cash equivalents	—			(36		)	—			(149		)	—			(185		)
Cash and cash equivalents at January 1				83						476						559
Cash and cash equivalents at September 30	$	—		$	47		$	—		$	327		$	—		$	374

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		)
Proceeds from sale of property, plant and equipment							1			5						6
Intercompany investing activities	150						150						(300		)	—
Other							10									10
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			—
Dividends paid to noncontrolling interests										(43		)				(43		)
Contributions from noncontrolling interests										1						1
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