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, 2016
			Guarantor		Non-Guarantor
Balance Sheet	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Current assets:
Cash and cash equivalents	$	—	$	—	$	492	$	—	$	492
Trade receivables, net						580				580
Inventories						983				983
Prepaid expenses and other current assets						199				199

Total current assets		—		—		2,254		—		2,254

Investments in and advances to subsidiaries		1,198		946				(2,144)		—
Property, plant and equipment, net						2,880				2,880
Intangibles						464				464
Goodwill						2,462				2,462
Other assets						1,075				1,075

Total assets	$	1,198	$	946	$	9,135	$	(2,144)	$	9,135

Current liabilities :
Short-term loans and long-term debt due within one year	$	—	$	—	$	195	$	—	$	195
Current portion of asbestos liability		115								115
Accounts payable						1,135				1,135
Other liabilities		2				615		(2)		615

Total current liabilities		117		—		1,945		(2)		2,060

Long-term debt		250				5,133		(250)		5,133
Asbestos-related liabilities		577								577
Other long-term liabilities						1,002				1,002
Share owners’ equity		254		946		946		(1,892)		254
Noncontrolling interests						109				109

Total liabilities and share owners’ equity	$	1,198	$	946	$	9,135	$	(2,144)	$	9,135


	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
Intangibles						597				597
Goodwill						2,489				2,489
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


	Year ended December 31, 2016
					Non-
			Guarantor		Guarantor
Results of Operations	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$		$		$	6,702	$		$	6,702
Cost of goods sold						(5,490)				(5,490)

Gross profit						1,212				1,212

Selling and administrative expense						(503)				(503)
Research, development and engineering expense						(65)				(65)
Net intercompany interest		20				(20)				—
Interest expense, net		(20)				(252)				(272)
Equity earnings from subsidiaries		209		209		—		(418)		—
Other equity earnings						60				60
Other expense, net						(76)				(76)

Earnings before income taxes		209		209		356		(418)		356
Provision for income taxes						(119)				(119)

Earnings from continuing operations		209		209		237		(418)		237
Loss from discontinued operations						(7)				(7)

Net earnings		209		209		230		(418)		230
Net earnings attributable to noncontrolling interests						(21)				(21)

Net earnings attributable to the Company	$	209	$	209	$	209	$	(418)	$	209


	Year ended December 31, 2016
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net earnings	$	209	$	209	$	230	$	(418)	$	230
Other comprehensive income (loss)		(176)		(176)		(159)		352		(159)

Total comprehensive income (loss)		33		33		71		(66)		71

Comprehensive income attributable to noncontrolling interests						(17)				(17)

Comprehensive income (loss) attributable to the Company	$	33	$	33	$	54	$	(66)	$	54


	Year ended December 31, 2015
					Non-
			Guarantor		Guarantor
Results of Operations	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$	—	$	—	$	6,156	$	—	$	6,156
Cost of goods sold						(5,046)				(5,046)

Gross profit						1,110				1,110

Selling and administrative expense						(476)				(476)
Research, development and engineering expense						(64)				(64)
Net intercompany interest		20				(20)				—
Interest expense, net		(20)				(231)				(251)
Equity earnings from subsidiaries		151		151				(302)		—
Other equity earnings						60				60
Other expense, net		(16)				(95)				(111)

Earnings before income taxes		135		151		284		(302)		268
Provision for income taxes						(106)				(106)

Earnings from continuing operations		135		151		178		(302)		162
Loss from discontinued operations						(4)				(4)

Net earnings		135		151		174		(302)		158
Net earnings attributable to noncontrolling interests						(23)				(23)

Net earnings attributable to the Company	$	135	$	151	$	151	$	(302)	$	135


	Year ended December 31, 2015
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net earnings	$	135	$	151	$	174	$	(302)	$	158
Other comprehensive income (loss)		(546)		(546)		(539)		1,092		(539)

Total comprehensive income (loss)		(411)		(395)		(365)		790		(381)

Comprehensive income attributable to noncontrolling interests						(7)				(7)

Comprehensive income (loss) attributable to the Company	$	(411)	$	(395)	$	(372)	$	790	$	(388)


	Year ended December 31, 2014
					Non-
			Guarantor		Guarantor
Results of Operations	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$	—	$	—	$	6,784	$	—	$	6,784
Cost of goods sold						(5,531)				(5,531)

Gross profit						1,253				1,253

Selling and administrative expense						(523)				(523)
Research, development and engineering expense						(63)				(63)
Net intercompany interest		20				(20)				—
Interest expense, net		(20)				(210)				(230)
Equity earnings from subsidiaries		210		210				(420)		—
Other equity earnings						64				64
Other expense, net		(46)				(148)				(194)

Earnings before income taxes		164		210		353		(420)		307
Provision for income taxes						(92)				(92)

Earnings from continuing operations		164		210		261		(420)		215
Loss from discontinued operations						(23)				(23)

Net earnings		164		210		238		(420)		192
Net earnings attributable to noncontrolling interests						(28)				(28)

Net earnings attributable to the Company	$	164	$	210	$	210	$	(420)	$	164


	Year ended December 31, 2014
					Non-
			Guarantor		Guarantor
Comprehensive Income	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net earnings	$	164	$	210	$	238	$	(420)	$	192
Other comprehensive income (loss)		(401)		(401)		(394)		802		(394)

Total comprehensive income (loss)		(237)		(191)		(156)		382		(202)

Comprehensive income attributable to noncontrolling interests						(7)				(7)

Comprehensive income (loss) attributable to the Company	$	(237)	$	(191)	$	(163)	$	382	$	(209)


	Year ended December 31, 2016
					Non-
			Guarantor		Guarantor
Cash Flows	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	(125)	$	—	$	876	$	—	$	751
Cash utilized in investing activities						(417)				(417)
Cash provided by (utilized in) financing activities		125				(353)				(228)

Effect of exchange rate change on cash						(13)				(13)

Net change in cash		—		—		93		—		93
Cash at beginning of period						399				399

Cash at end of period	$	—	$	—	$	492	$	—	$	492


	Year ended December 31, 2015
					Non-
			Guarantor		Guarantor
Cash Flows	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	(138)	$	—	$	746	$	—	$	608
Cash utilized in investing activities						(2,748)				(2,748)
Cash provided by financing activities		138				1,919				2,057

Effect of exchange rate change on cash						(30)				(30)

Net change in cash		—		—		(113)		—		(113)
Cash at beginning of period						512				512

Cash at end of period	$	—	$	—	$	399	$	—	$	399


	Year ended December 31, 2014
					Non-
			Guarantor		Guarantor
Cash Flows	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	(148)	$	—	$	823	$	—	$	675
Cash utilized in investing activities						(455)				(455)
Cash provided by (utilized in) financing activities		148				(218)				(70)

Effect of exchange rate change on cash						(21)				(21)

Net change in cash		—		—		129		—		129
Cash at beginning of period						383				383

Cash at end of period	$	—	$	—	$	512	$	—	$	512