Financial Information for Subsidiary Guarantors and Non-Guarantors (Tables)

9 Months Ended

Sep. 30, 2013

Financial Information for Subsidiary Guarantors and Non-Guarantors

Balance Sheet

	September 30, 2013
							Non-
					Guarantor		Guarantor
Balance Sheet	Parent		Issuer		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Current assets:
Accounts receivable	$	—	$	99	$	—	$	1,073	$	—		$	1,172
Inventories			194				984					1,178
Other current assets			9		6		307					322
Total current assets	—		302		6		2,364		—			2,672
Investments in and advances to subsidiaries	1,813		3,302		1,208				(6,323		)	—
Goodwill			574		8		1,477					2,059
Other non-current assets			123		84		877					1,084
Total other assets	1,813		3,999		1,300		2,354		(6,323		)	3,143
Property, plant and equipment, net			632		38		1,987					2,657
Total assets	$	1,813	$	4,933	$	1,344	$	6,705	$	(6,323	)	$	8,472
Current liabilities :
Accounts payable and accrued liabilities	$	—	$	244	$	63	$	1,259	$	—		$	1,566
Short-term loans and long-term debt due within one year					1		365					366
Total current liabilities	—		244		64		1,624		—			1,932
Long-term debt	250		1,658		12		1,378					3,298
Other non-current liabilities			17		580		915					1,512
Investments by and advances from parent			3,014		688		2,621		(6,323		)	—
Total share owner’s equity of the Company	1,563											1,563
Noncontrolling interests							167					167
Total liabilities and share owners’ equity	$	1,813	$	4,933	$	1,344	$	6,705	$	(6,323	)	$	8,472

	December 31, 2012
								Non-
					Guarantor			Guarantor
Balance Sheet	Parent		Issuer		Subsidiaries			Subsidiaries		Eliminations			Consolidated
Current assets:
Accounts receivable	$	—	$	66	$	(15	)	$	917	$	—		$	968
Inventories			212					927					1,139
Other current assets			9		18			514					541
Total current assets	—		287		3			2,358		—			2,648
Investments in and advances to subsidiaries	1,592		2,836		(178		)			(4,250		)	—
Goodwill			555		8			1,516					2,079
Other non-current assets			127		87			888					1,102
Total other assets	1,592		3,518		(83		)	2,404		(4,250		)	3,181
Property, plant and equipment, net			626		42			2,101					2,769
Total assets	$	1,592	$	4,431	$	(38	)	$	6,863	$	(4,250	)	$	8,598
Current liabilities :
Accounts payable and accrued liabilities	$	—	$	273	$	60		$	1,355	$	—		$	1,688
Short-term loans and long-term debt due within one year					1			318					319
Total current liabilities	—		273		61			1,673		—			2,007
Long-term debt	250		1,759		13			1,432					3,454
Other non-current liabilities			31		665			925					1,621
Investments by and advances from parent			2,368		(777		)	2,659		(4,250		)	—
Total share owner’s equity of the Company	1,342												1,342
Noncontrolling interests								174					174
Total liabilities and share owners’ equity	$	1,592	$	4,431	$	(38	)	$	6,863	$	(4,250	)	$	8,598

	September 30, 2012
								Non-
					Guarantor			Guarantor
Balance Sheet	Parent		Issuer		Subsidiaries			Subsidiaries		Eliminations			Consolidated
Current assets:
Accounts receivable	$	—	$	103	$	(15	)	$	1,045	$	—		$	1,133
Inventories			213					1,015					1,228
Other current assets			12		46			369					427
Total current assets	—		328		31			2,429		—			2,788
Investments in and advances to subsidiaries	1,921		3,070		(147		)			(4,844		)	—
Goodwill			555		8			1,502					2,065
Other non-current assets			143		90			1,050					1,283
Total other assets	1,921		3,768		(49		)	2,552		(4,844		)	3,348
Property, plant and equipment, net			593		43			2,099					2,735
Total assets	$	1,921	$	4,689	$	25		$	7,080	$	(4,844	)	$	8,871
Current liabilities :
Accounts payable and accrued liabilities	$	—	$	214	$	81		$	1,183	$	39		$	1,517
Short-term loans and long-term debt due within one year					1			355					356
Total current liabilities	—		214		82			1,538		39			1,873
Long-term debt	250		1,774		14			1,499					3,537
Other non-current liabilities			24		684			932					1,640
Investments by and advances from parent			2,677		(755		)	2,961		(4,883		)	—
Total share owner’s equity of the Company	1,671												1,671
Noncontrolling interests								150					150
Total liabilities and share owners’ equity	$	1,921	$	4,689	$	25		$	7,080	$	(4,844	)	$	8,871

Results of Operations

	Three months ended September 30, 2013
										Non-
							Guarantor			Guarantor
Results of Operations	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	497		$	1		$	1,286		$	—		$	1,784
Manufacturing, shipping, and delivery				(416		)	7			(1,023		)				(1,432		)
Gross profit	—			81			8			263			—			352
Research, engineering, selling, administrative, and other				(34		)	(8		)	(106		)				(148		)
Net intercompany interest	5			(5		)										—
Interest expense	(5		)	(25		)	(1		)	(25		)				(56		)
Interest income										2						2
Equity earnings from subsidiaries	130			76									(206		)	—
Other equity earnings				4						12						16
Other income				60			1			(49		)				12
Earnings (loss) from continuing operations before income taxes	130			157			—			97			(206		)	178
Provision for income taxes				(3		)				(37		)				(40		)
Earnings (loss) from continuing operations	130			154			—			60			(206		)	138
Loss from discontinued operations										(2		)				(2		)
Net earnings (loss)	130			154			—			58			(206		)	136
Net earnings attributable to noncontrolling interests										(6		)				(6		)
Net earnings (loss) attributable to the Company	$	130		$	154		$	—		$	52		$	(206	)	$	130

	Three months ended September 30, 2013
								Non-
						Guarantor		Guarantor
Comprehensive Income	Parent		Issuer			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	130	$	154		$	—	$	58		$	(206	)	$	136
Other comprehensive income	39		(2		)			14			(12		)	39
Total comprehensive income (loss)	169		152			—		72			(218		)	175
Comprehensive income attributable to noncontrolling interests								(6		)				(6		)
Comprehensive income (loss) attributable to the Company	$	169	$	152		$	—	$	66		$	(218	)	$	169

	Three months ended September 30, 2012
										Non-
							Guarantor			Guarantor
Results of Operations	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	488		$	—		$	1,259		$	—		$	1,747
Manufacturing, shipping, and delivery				(403		)	(7		)	(995		)				(1,405		)
Gross profit	—			85			(7		)	264			—			342
Research, engineering, selling, administrative, and other				(33		)	(17		)	(130		)				(180		)
Net intercompany interest	5			(5		)										—
Interest expense	(5		)	(28		)				(28		)				(61		)
Interest income										2						2
Equity earnings from subsidiaries	90			48									(138		)	—
Other equity earnings				4						12						16
Other income				46						(38		)				8
Earnings (loss) from continuing operations before income taxes	90			117			(24		)	82			(138		)	127
Provision for income taxes							(1		)	(27		)				(28		)
Earnings (loss) from continuing operations	90			117			(25		)	55			(138		)	99
Loss from discontinued operations										(2		)				(2		)
Net earnings (loss)	90			117			(25		)	53			(138		)	97
Net earnings attributable to noncontrolling interests										(7		)				(7		)
Net earnings (loss) attributable to the Company	$	90		$	117		$	(25	)	$	46		$	(138	)	$	90

	Three months ended September 30, 2012
								Non-
					Guarantor			Guarantor
Comprehensive Income	Parent		Issuer		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	90	$	117	$	(25	)	$	53		$	(138	)	$	97
Other comprehensive income	103		3					78			(79		)	105
Total comprehensive income (loss)	193		120		(25		)	131			(217		)	202
Comprehensive income attributable to noncontrolling interests								(9		)				(9		)
Comprehensive income (loss) attributable to the Company	$	193	$	120	$	(25	)	$	122		$	(217	)	$	193

	Nine months ended September 30, 2013
										Non-
							Guarantor			Guarantor
Results of Operations	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,433		$	2		$	3,771		$	—		$	5,206
Manufacturing, shipping, and delivery				(1,161		)	(17		)	(2,988		)				(4,166		)
Gross profit	—			272			(15		)	783			—			1,040
Research, engineering, selling, administrative, and other				(82		)	(59		)	(324		)				(465		)
Net intercompany interest	15			(15		)										—
Interest expense	(15		)	(82		)	(1		)	(86		)				(184		)
Interest income										6						6
Equity earnings from subsidiaries	331			192									(523		)	—
Other equity earnings				12						37						49
Other income				155			1			(130		)				26
Earnings (loss) from continuing operations before income taxes	331			452			(74		)	286			(523		)	472
Provision for income taxes				(7		)	(1		)	(102		)				(110		)
Earnings (loss) from continuing operations	331			445			(75		)	184			(523		)	362
Loss from discontinued operations										(15		)				(15		)
Net earnings (loss)	331			445			(75		)	169			(523		)	347
Net earnings attributable to noncontrolling interests										(16		)				(16		)
Net earnings (loss) attributable to the Company	$	331		$	445		$	(75	)	$	153		$	(523	)	$	331

	Nine months ended September 30, 2013
										Non-
							Guarantor			Guarantor
Comprehensive Income	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	331		$	445		$	(75	)	$	169		$	(523	)	$	347
Other comprehensive income	(14		)	(6		)				(94		)	94			(20		)
Total comprehensive income (loss)	317			439			(75		)	75			(429		)	327
Comprehensive income attributable to noncontrolling interests										(10		)				(10		)
Comprehensive income (loss) attributable to the Company	$	317		$	439		$	(75	)	$	65		$	(429	)	$	317

	Nine months ended September 30, 2012
										Non-
							Guarantor			Guarantor
Results of Operations	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,441		$	—		$	3,811		$	—		$	5,252
Manufacturing, shipping, and delivery				(1,162		)	(10		)	(2,984		)				(4,156		)
Gross profit	—			279			(10		)	827			—			1,096
Research, engineering, selling, administrative, and other				(117		)	(58		)	(335		)				(510		)
Net intercompany interest	15			(15		)										—
Interest expense	(15		)	(81		)				(91		)				(187		)
Interest income										7						7
Equity earnings from subsidiaries	344			219									(563		)	—
Other equity earnings				11						36						47
Other income				136						(113		)				23
Earnings (loss) from continuing operations before income taxes	344			432			(68		)	331			(563		)	476
Provision for income taxes				(8		)	(2		)	(103		)				(113		)
Earnings (loss) from continuing operations	344			424			(70		)	228			(563		)	363
Loss from discontinued operations										(4		)				(4		)
Net earnings (loss)	344			424			(70		)	224			(563		)	359
Net earnings attributable to noncontrolling interest										(15		)				(15		)
Net earnings (loss) attributable to the Company	$	344		$	424		$	(70	)	$	209		$	(563	)	$	344

	Nine months ended September 30, 2012
								Non-
					Guarantor			Guarantor
Comprehensive Income	Parent		Issuer		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	344	$	424	$	(70	)	$	224		$	(563	)	$	359
Other comprehensive income	51		6					(22		)	22			57
Total comprehensive income (loss)	395		430		(70		)	202			(541		)	416
Comprehensive income attributable to noncontrolling interests								(21		)				(21		)
Comprehensive income (loss) attributable to the Company	$	395	$	430	$	(70	)	$	181		$	(541	)	$	395

Cash Flows

	Nine months ended September 30, 2013
													Non-
									Guarantor				Guarantor
Cash Flows	Parent				Issuer				Subsidiaries				Subsidiaries			Eliminations		Consolidated
Cash provided by (utilized in) operating activities	$	—			$		192		$		17		$	141		$	—	$		350
Investing Activities:
Additions to property, plant and equipment					(73			)					(166		)			(239			)
Net cash proceeds from asset sales and other					(2			)					8					6
Payments to fund minority partner loan													(16		)			(16			)
Cash utilized in investing activities	—				(75			)	—				(174		)	—		(249			)
Financing Activities:
Net distribution to OI Inc.	(106			)														(106			)
Change in intercompany transactions	106								(13			)	(93		)			—
Additions to long term debt					208								496					704
Repayments of long term debt					(325			)	(12			)	(572		)			(909			)
Increase in short term debt													46					46
Net payments for hedging activity													(13		)			(13			)
Payment of finance fees													(7		)			(7			)
Dividends paid to noncontrolling interests													(21		)			(21			)
Cash provided by (utilized in) financing activities	—				(117			)	(25			)	(164		)	—		(306			)
Effect of exchange rate change on cash													(7		)			(7			)
Increase (decrease) in cash	—				—				(8			)	(204		)	—		(212			)
Cash at beginning of period									10				421					431
Cash at end of period	$		—		$	—			$	2			$	217		$	—	$	219

	Nine months ended September 30, 2012
										Non-
							Guarantor			Guarantor
Cash Flows	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash provided by (utilized in) operating activities	$	—		$	151		$	4		$	108		$	50		$	313
Investing Activities:
Additions to property, plant, and equipment -				(42		)	(1		)	(135		)				(178		)
Acquisitions, net of cash acquired										(5		)				(5		)
Net cash proceeds from asset sales and other				2						47						49
Proceeds from collection of minority partner loan										9						9
Cash utilized in investing activities	—			(40		)	(1		)	(84		)	—			(125		)
Financing Activities:
Net distribution to OI Inc.	(99		)													(99		)
Change in intercompany transactions	99			(58		)	18			(9		)	(50		)	—
Additions to short term debt										(11		)				(11		)
Borrowings of long term debt				110						9						119
Payments of long term debt				(163		)	(1		)	(111		)				(275		)
Net receipts for hedging activity										25						25
Dividends paid to noncontrolling interests										(24		)				(24		)
Cash provided by (utilized in) financing activities	—			(111		)	17			(121		)	(50		)	(265		)
Effect of exchange rate change on cash										13						13
Increase (decrease) in cash	—			—			20			(84		)	—			(64		)
Cash at beginning of period							21			379						400
Cash at end of period	$	—		$	—		$	41		$	295		$	—		$	336