Financial Information for Subsidiary Guarantors and Non-Guarantors

12 Months Ended

Dec. 31, 2012

Financial Information for Subsidiary Guarantors and Non-Guarantors

Financial Information for Subsidiary Guarantors and Non-Guarantors

22. Financial Information for Subsidiary Guarantors and Non-Guarantors

        The following presents condensed consolidating financial information for the Company, segregating: (1) Owens-Illinois, Inc., the issuer of senior debentures (the "Parent"); (2) the two subsidiaries which have guaranteed the senior debentures on a subordinated basis (the "Guarantor Subsidiaries"); and (3) all other subsidiaries (the "Non-Guarantor Subsidiaries"). The Guarantor Subsidiaries are 100% owned direct and indirect subsidiaries of the Company and their guarantees are full, unconditional and joint and several. They have no operations and function only as intermediate holding companies.

        Certain reclassifications have been made to conform all of the financial information to the financial presentation on a consolidated basis. The principal eliminations relate to investments in subsidiaries and intercompany balances and transactions.

	December 31, 2012
Balance Sheet	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Current assets:
Accounts receivable	$	—	$	—	$	968	$	—		$	968
Inventories						1,139					1,139
Other current assets						541					541
Total current assets		—		—		2,648		—			2,648
Investments in and advances to subsidiaries		1,592		1,342				(2,934	)		—
Goodwill						2,079					2,079
Other non-current assets						1,102					1,102
Total other assets		1,592		1,342		3,181		(2,934	)		3,181
Property, plant and equipment, net						2,769					2,769
Total assets	$	1,592	$	1,342	$	8,598	$	(2,934	)	$	8,598
Current liabilities:
Accounts payable and accrued liabilities	$	—	$	—	$	1,688	$	—		$	1,688
Current portion of asbestos liability		155									155
Short-term loans and long-term debt due within one year						319					319
Total current liabilities		155		—		2,007		—			2,162
Long-term debt		250				3,454		(250	)		3,454
Asbestos-related liabilities		306									306
Other non-current liabilities						1,621					1,621
Total share owners' equity of the Company		881		1,342		1,342		(2,684	)		881
Noncontrolling interests						174					174
Total liabilities and share owners' equity	$	1,592	$	1,342	$	8,598	$	(2,934	)	$	8,598

	December 31, 2011
Balance Sheet	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Current assets:
Accounts receivable	$	—	$	—	$	1,158	$	—		$	1,158
Inventories						1,061					1,061
Other current assets						524					524
Total current assets		—		—		2,743		—			2,743
Investments in and advances to subsidiaries		1,609		1,359				(2,968	)		—
Goodwill						2,082					2,082
Other non-current assets						1,273					1,273
Total other assets		1,609		1,359		3,355		(2,968	)		3,355
Property, plant and equipment, net						2,877					2,877
Total assets	$	1,609	$	1,359	$	8,975	$	(2,968	)	$	8,975
Current liabilities:
Accounts payable and accrued liabilities	$	—	$	—	$	1,674	$	—		$	1,674
Current portion of asbestos liability		165									165
Short-term loans and long-term debt due within one year						406					406
Total current liabilities		165		—		2,080		—			2,245
Long-term debt		250				3,627		(250	)		3,627
Asbestos-related liabilities		306									306
Other non-current liabilities						1,756					1,756
Total share owners' equity of the Company		888		1,359		1,359		(2,718	)		888
Noncontrolling interests						153					153
Total liabilities and share owners' equity	$	1,609	$	1,359	$	8,975	$	(2,968	)	$	8,975

	Year ended December 31, 2012
Results of Operations	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—	$	7,000		$	—		$	7,000
Manufacturing, shipping and delivery							(5,626	)					(5,626	)
Gross profit		—			—		1,374			—			1,374
Research, engineering, selling, administrative, and other		(155	)				(752	)					(907	)
Interest expense		(20	)				(228	)					(248	)
Net intercompany interest		20					(20	)					—
Interest income							9						9
Equity earnings from subsidiaries		339			339					(678	)		—
Other equity earnings							64						64
Other revenue							36						36
Earnings before income taxes		184			339		483			(678	)		328
Provision for income taxes							(108	)					(108	)
Earnings (loss) from continuing operations		184			339		375			(678	)		220
Loss from discontinued operations							(2	)					(2	)
Net earnings (loss)		184			339		373			(678	)		218
Net earnings attributable to noncontrolling interests							(34	)					(34	)
Net earnings (loss) attributable to the Company	$	184		$	339	$	339		$	(678	)	$	184

	Year ended December 31, 2012
Comprehensive Income	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	184		$	339		$	373		$	(678	)	$	218
Other comprehensive income (loss)		(185	)		(185	)		(202	)		395			(177	)
Total comprehensive income (loss)		(1	)		154			171			(283	)		41
Comprehensive income attributable to noncontrolling interests								(42	)					(42	)
Comprehensive income (loss) attributable to the Company	$	(1	)	$	154		$	129		$	(283	)	$	(1	)

	Year ended December 31, 2011
Results of Operations	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	—		$	7,358		$	—	$	7,358
Manufacturing, shipping and delivery								(5,969	)				(5,969	)
Gross profit		—			—			1,389			—		1,389
Research, engineering, selling, administrative, and other		(165	)					(1,410	)				(1,575	)
Interest expense		(20	)					(294	)				(314	)
Net intercompany interest		20						(20	)				—
Interest income								11					11
Equity earnings from subsidiaries		(335	)		(335	)					670		—
Other equity earnings								66					66
Other revenue								27					27
Earnings before income taxes		(500	)		(335	)		(231	)		670		(396	)
Provision for income taxes								(85	)				(85	)
Earnings (loss) from continuing operations		(500	)		(335	)		(316	)		670		(481	)
Earnings from discontinued operations								1					1
Net earnings (loss)		(500	)		(335	)		(315	)		670		(480	)
Net earnings attributable to noncontrolling interests								(20	)				(20	)
Net earnings (loss) attributable to the Company	$	(500	)	$	(335	)	$	(335	)	$	670	$	(500	)

	Year ended December 31, 2011
Comprehensive Income	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net earnings (loss)	$	(500	)	$	(335	)	$	(315	)	$	670	$	(480	)
Other comprehensive income		(415	)		(415	)		(164	)		579		(415	)
Total comprehensive income		(915	)		(750	)		(479	)		1,249		(895	)
Comprehensive income attributable to noncontrolling interests								(20	)				(20	)
Comprehensive income attributable to the Company	$	(915	)	$	(750	)	$	(499	)	$	1,249	$	(915	)

	Year ended December 31, 2010
Results of Operations	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—	$	6,633		$	—		$	6,633
Manufacturing, shipping and delivery							(5,281	)					(5,281	)
Gross profit		—			—		1,352			—			1,352
Research, engineering, selling, administrative, and other		(170	)				(611	)					(781	)
Interest expense		(21	)				(228	)					(249	)
Net intercompany interest		21					(21	)		—			—
Interest income							13						13
Equity earnings from subsidiaries		111			111					(222	)		—
Other equity earnings							59						59
Other revenue							32						32
Earnings before income taxes		(59	)		111		596			(222	)		426
Provision for income taxes		8					(137	)					(129	)
Earnings from continuing operations		(51	)		111		459			(222	)		297
Earnings from discontinued operations							31			—			31
Loss on disposal of discontinued operations		6					(337	)					(331	)
Net earnings (loss)		(45	)		111		153			(222	)		(3	)
Net earnings attributable to noncontrolling interests							(42	)					(42	)
Net earnings (loss) attributable to the Company	$	(45	)	$	111	$	111		$	(222	)	$	(45	)

	Year ended December 31, 2010
Comprehensive Income	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	(45	)	$	111	$	153		$	(222	)	$	(3	)
Other comprehensive income		421			421		389			(804	)		427
Total comprehensive income		376			532		542			(1,026	)		424
Comprehensive income attributable to noncontrolling interests							(48	)					(48	)
Comprehensive income attributable to the Company	$	376		$	532	$	494		$	(1,026	)	$	376

	Year ended December 31, 2012
Cash Flows	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	(165	)	$	—	$	740		$	—	$	575
Cash utilized in investing activities							(221	)				(221	)
Cash provided by (utilized in) financing activities		165					(504	)				(339	)
Effect of exchange rate change on cash							16					16
Net change in cash		—			—		31			—		31
Cash at beginning of period							400					400
Cash at end of period	$	—		$	—	$	431		$	—	$	431

	Year ended December 31, 2011
Cash Flows	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	(170	)	$	—	$	673		$	—	$	503
Cash utilized in investing activities							(426	)				(426	)
Cash provided by financing activities		170					(493	)				(323	)
Effect of exchange rate change on cash							6					6
Net change in cash		—			—		(240	)		—		(240	)
Cash at beginning of period							640					640
Cash at end of period	$	—		$	—	$	400		$	—	$	400

	Year ended December 31, 2010
Cash Flows	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	(179	)	$	—	$	771		$	—	$	592
Cash utilized in investing activities							(1,314	)				(1,314	)
Cash provided by (utilized in) financing activities		179					368					547
Effect of exchange rate change on cash							3					3
Net change in cash					—		(172	)		—		(172	)
Cash at beginning of period							812					812
Cash at end of period	$	—		$	—	$	640		$	—	$	640