Equity Investments

12 Months Ended

Dec. 31, 2020

Equity Investments

Equity Investments

6. Equity Investments

At December 31, 2020, the Company’s ownership percentage in affiliates include:

	O-I Ownership
Affiliates	Percentage		Business Type
Empresas Comegua S.A.	49.7	%	Glass container manufacturer
BJC O-I Glass Pte. Ltd.	50	%	Glass container manufacturer
CO Vidrieria SARL ("COV")	50	%	Glass container manufacturer
Rocky Mountain Bottle Company	50	%	Glass container manufacturer
Vetrerie Meridionali SpA ("VeMe")	50	%	Glass container manufacturer
Vetri Speciali SpA	50	%	Specialty glass manufacturer

Summarized information pertaining to the Company’s equity affiliates follows:

	2020		2019		2018
Equity in earnings:
Non-U.S.	$	29	$	58	$	52
U.S.		8		20		25
Total	$	37	$	78	$	77
Dividends received	$	58	$	42	$	72

In 2020, the Company evaluated the future estimated earnings and cash flow of one of its Non-U.S. equity investments (a glass container manufacturer reported in the Retained corporate costs and other category) and determined that it was other-than-temporarily impaired. As such, the Company recorded an impairment charge of approximately $36 million to the equity earnings line in its Consolidated Results of Operations to reduce its carrying value down to its estimated fair value. Subsequent to the impairment charge, the remaining carrying value of this equity investment was $0. The Company classified the significant assumptions that were utilized in a discounted cash flow model to determine the fair value of the impaired assets as Level 3 in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. 

Summarized combined financial information for equity affiliates is as follows (unaudited):

	2020		2019
At end of year:
Current assets	$	476	$	460
Non-current assets		1,317		1,356
Total assets		1,793		1,816
Current liabilities		330		303
Other liabilities and deferred items		183		158
Total liabilities and deferred items		513		461
Net assets	$	1,280	$	1,355

For the year:	2020		2019		2018
Net sales	$	927	$	908	$	972
Gross profit	$	256	$	232	$	234
Net earnings	$	141	$	114	$	184

In December 2019, the Company sold its 25% equity interest in Tata Chemicals (Soda Ash) Partners.

Based on an evaluation of each of the Company’s equity investments for the three years ending December 31, 2020, no investments exceeded the significant subsidiary thresholds per Rule 3-09 of Regulation S-X. As such, separate financial statements for the Company’s equity investments are not required to be filed with the Securities and Exchange Commission.

The Company made purchases of approximately $111 million and $205 million from equity affiliates in 2020 and 2019, respectively, and owed approximately $82 million and $103 million to equity affiliates as of December 31, 2020 and 2019, respectively.