16. 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.

	September 30, 2013
					Non-
			Guarantor		Guarantor
Balance Sheet	Parent		Subsidiaries		Subsidiaries		Eliminations			Consolidated

Current assets:
Accounts receivable	$	—	$	—	$	1,172	$	—		$	1,172
Inventories					1,178					1,178
Other current assets					322					322

Total current assets	—		—		2,672		—			2,672
Investments in and advances to subsidiaries	1,813		1,563				(3,376		)	—

Goodwill					2,059					2,059
Other non-current assets					1,084					1,084

Total other assets	1,813		1,563		3,143		(3,376		)	3,143

Property, plant and equipment, net					2,657					2,657

Total assets	$	1,813	$	1,563	$	8,472	$	(3,376	)	$	8,472

Current liabilities :
Accounts payable and accrued liabilities	$	—	$	—	$	1,566	$	—		$	1,566
Current portion of asbestos liability	155									155
Short-term loans and long-term debt due within one year					366					366

Total current liabilities	155		—		1,932		—			2,087

Long-term debt	250				3,298		(250		)	3,298
Asbestos-related liabilities	198									198
Other non-current liabilities					1,512					1,512
Total share owners’ equity of the Company	1,210		1,563		1,563		(3,126		)	1,210
Noncontrolling interests					167					167

Total liabilities and share owners’ equity	$	1,813	$	1,563	$	8,472	$	(3,376	)	$	8,472

	December 31, 2012
					Non-
			Guarantor		Guarantor
Balance Sheet	Parent		Subsidiaries		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

	September 30, 2012
					Non-
			Guarantor		Guarantor
Balance Sheet	Parent		Subsidiaries		Subsidiaries		Eliminations			Consolidated

Current assets:
Accounts receivable	$	—	$	—	$	1,133	$	—		$	1,133
Inventories					1,228					1,228
Other current assets					427					427

Total current assets	—		—		2,788		—			2,788
Investments in and advances to subsidiaries	1,921		1,671				(3,592		)	—

Goodwill					2,065					2,065
Other non-current assets					1,283					1,283

Total other assets	1,921		1,671		3,348		(3,592		)	3,348

Property, plant and equipment, net					2,735					2,735

Total assets	$	1,921	$	1,671	$	8,871	$	(3,592	)	$	8,871

Current liabilities :
Accounts payable and accrued liabilities	$	—	$	—	$	1,517	$	—		$	1,517
Current portion of asbestos liability	165									165
Short-term loans and long-term debt due within one year					356					356

Total current liabilities	165		—		1,873		—			2,038

Long-term debt	250				3,537		(250		)	3,537
Asbestos-related liabilities	220									220
Other non-current liabilities					1,640					1,640
Total share owners’ equity of the Company	1,286		1,671		1,671		(3,342		)	1,286
Noncontrolling interests					150					150

Total liabilities and share owners’ equity	$	1,921	$	1,671	$	8,871	$	(3,592	)	$	8,871

	Three months ended September 30, 2013
						Non-
				Guarantor		Guarantor
Results of Operations	Parent			Subsidiaries		Subsidiaries			Eliminations			Consolidated

Net sales	$	—		$	—	$	1,784		$	—		$	1,784
Manufacturing, shipping and delivery						(1,432		)				(1,432		)

Gross profit	—			—		352			—			352

Research, engineering, selling, administrative, and other						(148		)				(148		)
Net intercompany interest	5					(5		)				—
Interest expense	(5		)			(51		)				(56		)
Interest income						2						2
Equity earnings from subsidiaries	130			130					(260		)	—
Other equity earnings						16						16
Other income						12						12

Earnings before income taxes	130			130		178			(260		)	178
Provision for income taxes						(40		)				(40		)

Earnings from continuing operations	130			130		138			(260		)	138
Loss from discontinued operations						(2		)				(2		)

Net earnings	130			130		136			(260		)	136
Net earnings attributable to noncontrolling interests						(6		)				(6		)

Net earnings attributable to the Company	$	130		$	130	$	130		$	(260	)	$	130

	Three months ended September 30, 2013
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries			Eliminations			Consolidated

Net earnings	$	130	$	130	$	136		$	(260	)	$	136
Other comprehensive income (loss)	39		39		12			(51		)	39

Total comprehensive income (loss)	169		169		148			(311		)	175

Comprehensive income attributable to noncontrolling interests					(6		)				(6		)

Comprehensive income attributable to the Company	$	169	$	169	$	142		$	(311	)	$	169

	Three months ended September 30, 2012
						Non-
				Guarantor		Guarantor
Results of Operations	Parent			Subsidiaries		Subsidiaries			Eliminations			Consolidated

Net sales	$	—		$	—	$	1,747		$	—		$	1,747
Manufacturing, shipping and delivery						(1,405		)				(1,405		)

Gross profit	—			—		342			—			342

Research, engineering, selling, administrative, and other						(180		)				(180		)
Net intercompany interest	5					(5		)				—
Interest expense	(5		)			(56		)				(61		)
Interest income						2						2
Equity earnings from subsidiaries	90			90					(180		)	—
Other equity earnings						16						16
Other income						8						8

Earnings from continuing operations before income taxes	90			90		127			(180		)	127
Provision for income taxes						(28		)				(28		)

Earnings from continuing operations	90			90		99			(180		)	99
Loss from discontinued operations						(2		)				(2		)

Net earnings	90			90		97			(180		)	97
Net earnings attributable to noncontrolling interests						(7		)				(7		)

Net earnings attributable to the Company	$	90		$	90	$	90		$	(180	)	$	90

	Three months ended September 30, 2012
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries			Eliminations			Consolidated

Net earnings	$	90	$	90	$	97		$	(180	)	$	97
Other comprehensive income (loss)	103		103		81			(182		)	105

Total comprehensive income (loss)	193		193		178			(362		)	202

Comprehensive income attributable to noncontrolling interests					(9		)				(9		)

Comprehensive income attributable to the Company	$	193	$	193	$	169		$	(362	)	$	193

	Nine months ended September 30, 2013
						Non-
				Guarantor		Guarantor
Results of Operations	Parent			Subsidiaries		Subsidiaries			Eliminations			Consolidated

Net sales	$	—		$	—	$	5,206		$	—		$	5,206
Manufacturing, shipping and delivery						(4,166		)				(4,166		)

Gross profit	—			—		1,040			—			1,040

Research, engineering, selling, administrative, and other						(465		)				(465		)
Net intercompany interest	15					(15		)				—
Interest expense	(15		)			(169		)				(184		)
Interest income						6						6
Equity earnings from subsidiaries	331			331					(662		)	—
Other equity earnings						49						49
Other income						26						26

Earnings before income taxes	331			331		472			(662		)	472
Provision for income taxes						(110		)				(110		)

Earnings from continuing operations	331			331		362			(662		)	362
Loss from discontinued operations						(15		)				(15		)

Net earnings	331			331		347			(662		)	347
Net earnings attributable to noncontrolling interests						(16		)				(16		)

Net earnings attributable to the Company	$	331		$	331	$	331		$	(662	)	$	331

	Nine months ended September 30, 2013
							Non-
				Guarantor			Guarantor
Comprehensive Income	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated

Net earnings	$	331		$	331		$	347		$	(662	)	$	347
Other comprehensive income (loss)	(14		)	(14		)	(100		)	108			(20		)
Total comprehensive income (loss)	317			317			247			(554		)	327
Comprehensive income attributable to noncontrolling interests							(10		)				(10		)
Comprehensive income attributable to the Company	$	317		$	317		$	237		$	(554	)	$	317

	Nine months ended September 30, 2012
						Non-
				Guarantor		Guarantor
Results of Operations	Parent			Subsidiaries		Subsidiaries			Eliminations			Consolidated

Net sales	$	—		$	—	$	5,252		$	—		$	5,252
Manufacturing, shipping and delivery						(4,156		)				(4,156		)

Gross profit	—			—		1,096			—			1,096

Research, engineering, selling, administrative, and other						(510		)				(510		)
Net intercompany interest	15					(15		)				—
Interest expense	(15		)			(172		)				(187		)
Interest income						7						7
Equity earnings from subsidiaries	344			344					(688		)	—
Other equity earnings						47						47
Other income						23						23

Earnings from continuing operations before income taxes	344			344		476			(688		)	476
Provision for income taxes						(113		)				(113		)

Earnings from continuing operations	344			344		363			(688		)	363
Loss from discontinued operations						(4		)				(4		)

Net earnings	344			344		359			(688		)	359
Net earnings attributable to noncontrolling interests						(15		)				(15		)

Net earnings attributable to the Company	$	344		$	344	$	344		$	(688	)	$	344

	Nine months ended September 30, 2012
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries			Eliminations			Consolidated

Net earnings	$	344	$	344	$	359		$	(688	)	$	359
Other comprehensive income (loss)	51		51		(16		)	(29		)	57
Total comprehensive income (loss)	395		395		343			(717		)	416
Comprehensive income attributable to noncontrolling interests					(21		)				(21		)
Comprehensive income attributable to the Company	$	395	$	395	$	322		$	(717	)	$	395

	Nine months ended September 30, 2013
						Non-
				Guarantor		Guarantor
Cash Flows	Parent			Subsidiaries		Subsidiaries			Eliminations		Consolidated

Cash provided by (used in) operating activities	$	(108	)	$	—	$	350		$	—	$	242
Cash used in investing activities						(249		)			(249		)
Cash provided by (used in) financing activities	108					(306		)			(198		)

Effect of exchange rate change on cash						(7		)			(7		)

Net change in cash	—			—		(212		)	—		(212		)
Cash at beginning of period						431					431

Cash at end of period	$	—		$	—	$	219		$	—	$	219

	Nine months ended September 30, 2012
						Non-
				Guarantor		Guarantor
Cash Flows	Parent			Subsidiaries		Subsidiaries			Eliminations		Consolidated

Cash provided by (used in) operating activities	$	(86	)	$	—	$	313		$	—	$	227
Cash used in investing activities						(125		)			(125		)
Cash provided by (used in) financing activities	86					(265		)			(179		)
Effect of exchange rate change on cash						13					13

Net change in cash	—			—		(64		)	—		(64		)
Cash at beginning of period						400					400

Cash at end of period	$	—		$	—	$	336		$	—	$	336