Equity Investments

12 Months Ended

Dec. 31, 2022

Equity Investments

Equity Investments

6. Equity Investments

At December 31, 2022, 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:

	2022		2021		2020
Equity in earnings:
Non-U.S.	$	101	$	83	$	29
U.S.		6		7		8
Total	$	107	$	90	$	37
Dividends received	$	71	$	103	$	58

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):

	2022		2021
At end of year:
Current assets	$	641	$	557
Non-current assets		1,369		1,317
Total assets		2,010		1,874
Current liabilities		426		386
Other liabilities and deferred items		207		195
Total liabilities and deferred items		633		581
Net assets	$	1,377	$	1,293

For the year:	2022		2021		2020
Net sales	$	1,328	$	1,185	$	927
Gross profit	$	348	$	305	$	256
Net earnings	$	232	$	169	$	141

Based on an evaluation of each of the Company’s equity investments for the three years ending December 31, 2022, 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 $137 million and $117 million from equity affiliates in 2022 and 2021, respectively, and owed approximately $65 million and $68 million to equity affiliates as of December 31, 2022 and 2021, respectively.