19. 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, 2016
			Guarantor		Non-Guarantor
Balance Sheet	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Current assets:
Cash and cash equivalents	$	—	$	—	$	294	$	—	$	294
Trade receivables, net						857				857
Inventories						1,057				1,057
Prepaid expenses and other current assets						234				234

Total current assets		—		—		2,442		—		2,442

Investments in and advances to subsidiaries		1,431		1,174				(2,605)		—
Property, plant and equipment, net						2,917				2,917
Goodwill						2,534				2,534
Intangibles, net						490				490
Other assets						1,114				1,114

Total assets	$	1,431	$	1,174	$	9,497	$	(2,605)	$	9,497

Current liabilities :
Short-term loans and long-term debt due within one year	$	—	$	—	$	262	$	—	$	262
Current portion of asbestos liability		130								130
Accounts payable						1,059				1,059
Other liabilities		7				582		(7)		582

Total current liabilities		137		—		1,903		(7)		2,033

Long-term debt		250				5,333		(250)		5,333
Asbestos-related liabilities		643								643
Other long-term liabilities						973				973
Share owners’ equity		401		1,174		1,174		(2,348)		401
Noncontrolling interests						114				114

Total liabilities and share owners’ equity	$	1,431	$	1,174	$	9,497	$	(2,605)	$	9,497


	December 31, 2015
					Non-
			Guarantor		Guarantor
Balance Sheet	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Current assets:
Cash and cash equivalents	$	—	$	—	$	399	$	—	$	399
Trade receivables, net						562				562
Inventories						1,007				1,007
Prepaid expenses and other current assets						366				366

Total current assets		—		—		2,334		—		2,334

Investments in and advances to subsidiaries		1,240		988				(2,228)		—
Property, plant and equipment, net						2,961				2,961
Goodwill						2,489				2,489
Intangibles, net						597				597
Other assets						1,040				1,040

Total assets	$	1,240	$	988	$	9,421	$	(2,228)	$	9,421

Current liabilities :
Short-term loans and long-term debt due within one year	$	—	$	—	$	228	$	—	$	228
Current portion of asbestos liability		130								130
Accounts payable						1,212				1,212
Other liabilities		2				552		(2)		552

Total current liabilities		132		—		1,992		(2)		2,122

Long-term debt		250				5,345		(250)		5,345
Asbestos-related liabilities		687								687
Other long-term liabilities						988				988
Share owners’ equity		171		988		988		(1,976)		171
Noncontrolling interests						108				108

Total liabilities and share owners’ equity	$	1,240	$	988	$	9,421	$	(2,228)	$	9,421


	September 30, 2015
					Non-
			Guarantor		Guarantor
Balance Sheet	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Current assets:
Cash and cash equivalents	$	—	$	—	$	270	$	—	$	270
Trade receivables, net						753				753
Inventories						1,023				1,023
Prepaid expenses and other current assets						442				442

Total current assets		—		—		2,488		—		2,488

Investments in and advances to subsidiaries		1,402		1,152				(2,554)		—
Property, plant and equipment, net						2,874				2,874
Goodwill						2,797				2,797
Intangibles, net						404				404
Other assets						991				991

Total assets	$	1,402	$	1,152	$	9,554	$	(2,554)	$	9,554

Current liabilities :
Short-term loans and long-term debt due within one year	$	—	$	—	$	250	$	—	$	250
Current portion of asbestos liability		143								143
Accounts payable						1,004				1,004
Other liabilities		7				520				527

Total current liabilities		150		—		1,774		—		1,924

Long-term debt		250				5,609		(250)		5,609
Asbestos-related liabilities		738								738
Other long-term liabilities						909				909
Share owners’ equity		264		1,152		1,152		(2,304)		264
Noncontrolling interests						110				110

Total liabilities and share owners’ equity	$	1,402	$	1,152	$	9,554	$	(2,554)	$	9,554


	Three months ended September 30, 2016
					Non-
			Guarantor		Guarantor
Results of Operations	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$	—	$	—	$	1,712	$	—	$	1,712
Cost of goods sold						(1,376)				(1,376)

Gross profit		—		—		336		—		336

Selling and administrative expense						(121)				(121)
Research, development and engineering expense						(16)				(16)
Net intercompany interest		5				(5)				—
Interest expense, net		(5)				(61)				(66)
Equity earnings from subsidiaries		108		108				(216)		—
Other equity earnings						15				15
Other expense, net						5				5

Earnings before income taxes		108		108		153		(216)		153
Provision for income taxes						(36)				(36)

Earnings from continuing operations		108		108		117		(216)		117
Loss from discontinued operations						(3)				(3)

Net earnings		108		108		114		(216)		114
Net (earnings) attributable to noncontrolling interests						(6)				(6)

Net earnings attributable to the Company	$	108	$	108	$	108	$	(216)	$	108


	Three months ended September 30, 2016
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net earnings	$	108	$	108	$	114	$	(216)	$	114
Other comprehensive income (loss), net		(63)		(63)		(59)		126		(59)
Total comprehensive loss		45		45		55		(90)		55

Comprehensive income attributable to noncontrolling interests						(4)				(4)

Comprehensive income attributable to the Company	$	45	$	45	$	51	$	(90)	$	51


	Three months ended September 30, 2015
					Non-
			Guarantor		Guarantor
Results of Operations	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$	—	$	—	$	1,566	$	—	$	1,566
Cost of goods sold						(1,290)				(1,290)

Gross profit		—		—		276		—		276

Selling and administrative expense						(109)				(109)
Research, development and engineering expense						(15)				(15)
Net intercompany interest		5				(5)				—
Interest expense, net		(5)				(62)				(67)
Equity earnings from subsidiaries		17		17				(34)		—
Other equity earnings						17				17
Other expense, net						(44)				(44)

Earnings before income taxes		17		17		58		(34)		58
Provision for income taxes						(33)				(33)

Earnings from continuing operations		17		17		25		(34)		25
Loss from discontinued operations						(1)				(1)

Net earnings		17		17		24		(34)		24
Net (earnings) attributable to noncontrolling interests						(7)				(7)

Net earnings attributable to the Company	$	17	$	17	$	17	$	(34)	$	17


	Three months ended September 30, 2015
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net earnings	$	17	$	17	$	24	$	(34)	$	24
Other comprehensive income (loss), net		(235)		(235)		(243)		470		(243)
Total comprehensive loss		(218)		(218)		(219)		436		(219)

Comprehensive income attributable to noncontrolling interests						1				1

Comprehensive loss attributable to the Company	$	(218)	$	(218)	$	(218)	$	436	$	(218)


	Nine months ended September 30, 2016
					Non-
			Guarantor		Guarantor
Results of Operations	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$	—	$	—	$	5,060	$	—	$	5,060
Cost of goods sold						(4,063)				(4,063)

Gross profit		—		—		997		—		997

Selling and administrative expense						(375)				(375)
Research, development and engineering expense						(48)				(48)
Net intercompany interest		15				(15)				—
Interest expense, net		(15)				(184)				(199)
Equity earnings from subsidiaries		280		280				(560)		—
Other equity earnings						44				44
Other expense, net						(24)				(24)

Earnings before income taxes		280		280		395		(560)		395
Provision for income taxes						(93)				(93)

Earnings from continuing operations		280		280		302		(560)		302
Loss from discontinued operations						(6)				(6)

Net earnings		280		280		296		(560)		296
Net (earnings) attributable to noncontrolling interests						(16)				(16)

Net earnings attributable to the Company	$	280	$	280	$	280	$	(560)	$	280


	Nine months ended September 30, 2016
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net earnings	$	280	$	280	$	296	$	(560)	$	296
Other comprehensive income (loss), net		(89)		(89)		(83)		178		(83)
Total comprehensive income (loss)		191		191		213		(382)		213

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

Comprehensive income (loss) attributable to the Company	$	191	$	191	$	207	$	(382)	$	207


	Nine months ended September 30, 2015
					Non-
			Guarantor		Guarantor
Results of Operations	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$	—	$	—	$	4,530	$	—	$	4,530
Cost of goods sold						(3,712)				(3,712)

Gross profit		—		—		818		—		818

Selling and administrative expense						(351)				(351)
Research, development and engineering expense						(46)				(46)
Net intercompany interest		15				(15)				—
Interest expense, net		(15)				(173)				(188)
Equity earnings from subsidiaries		128		128				(256)		—
Other equity earnings						46				46
Other expense, net						(59)				(59)

Earnings before income taxes		128		128		220		(256)		220
Provision for income taxes						(73)				(73)

Earnings from continuing operations		128		128		147		(256)		147
Loss from discontinued operations						(3)				(3)

Net earnings		128		128		144		(256)		144
Net (earnings) attributable to noncontrolling interests						(16)				(16)

Net earnings attributable to the Company	$	128	$	128	$	128	$	(256)	$	128


	Nine months ended September 30, 2015
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net earnings	$	128	$	128	$	144	$	(256)	$	144
Other comprehensive income, net		(418)		(418)		(434)		836		(434)
Total comprehensive loss		(290)		(290)		(290)		580		(290)

Comprehensive income attributable to noncontrolling interests										—

Comprehensive loss attributable to the Company	$	(290)	$	(290)	$	(290)	$	580	$	(290)


	Nine months ended September 30, 2016
					Non-
			Guarantor		Guarantor
Cash Flows	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	(45)	$	—	$	265	$	—	$	220
Cash utilized in investing activities						(282)				(282)
Cash provided by (utilized in) financing activities		45				(84)				(39)

Effect of exchange rate change on cash						(4)				(4)

Net change in cash		—		—		(105)		—		(105)
Cash at beginning of period						399				399

Cash at end of period	$	—	$	—	$	294	$	—	$	294


	Nine months ended September 30, 2015
					Non-
			Guarantor		Guarantor
Cash Flows	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	(58)	$	—	$	161	$	—	$	103
Cash utilized in investing activities						(2,638)				(2,638)
Cash provided by financing activities		58				2,264				2,322

Effect of exchange rate change on cash						(29)				(29)

Net change in cash		—		—		(242)		—		(242)
Cash at beginning of period						512				512

Cash at end of period	$	—	$	—	$	270	$	—	$	270