20. Subsidiary Guarantees of Debt

The company’s senior notes are guaranteed on a full, unconditional and joint and several basis by certain of the company’s material domestic subsidiaries. Each of the guarantor subsidiaries is 100 percent owned by Ball Corporation. These guarantees are required in support of the notes, are co-terminous with the terms of the respective note indentures and would require performance upon certain events of default referred to in the respective guarantees. The maximum potential amounts that could be required to be paid under the domestic guarantees are essentially equal to the then outstanding principal and interest under the respective notes. The following is unaudited condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of June 30, 2016, and December 31, 2015, and for the three and six months ended June 30, 2016 and 2015. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements are not required by the current regulations.


	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended June 30, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,206	$	882	$	(58)	$	2,030

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(975)		(679)		58		(1,596)
Depreciation and amortization		(1)		(36)		(41)		—		(78)
Selling, general and administrative		(13)		(42)		(50)		—		(105)
Business consolidation and other activities		770		(6)		(737)		—		27
Equity in results of subsidiaries		(450)		317		1		132		—
Intercompany		60		(44)		(16)		—		—
		366		(786)		(1,522)		190		(1,752)

Earnings (loss) before interest and taxes		366		420		(640)		132		278
Interest expense		(38)		(1)		(2)				(41)
Debt refinancing and other costs		(36)		—		(10)		—		(46)
Total interest expense		(74)		(1)		(12)		—		(87)
Earnings (loss) before taxes		292		419		(652)		132		191
Tax (provision) benefit		46		(32)		132		—		146
Equity in results of affiliates, net of tax		—		1		—		—		1
Net earnings (loss)		338		388		(520)		132		338
Less net earnings attributable to
noncontrolling interests		—		—		—		—		—
Net earnings (loss) attributable to
Ball Corporation	$	338	$	388	$	(520)	$	132	$	338

Comprehensive earnings (loss) attributable
to Ball Corporation	$	354	$	416	$	(512)	$	96	$	354


	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended June 30, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,320	$	864	$	(12)	$	2,172

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,100)		(687)		12		(1,775)
Depreciation and amortization		(1)		(32)		(38)		—		(71)
Selling, general and administrative		(23)		(44)		(51)		—		(118)
Business consolidation and other activities		72		—		(6)		—		66
Equity in results of subsidiaries		117		52		—		(169)		—
Intercompany		51		(44)		(7)		—		—
		216		(1,168)		(789)		(157)		(1,898)

Earnings (loss) before interest and taxes		216		152		75		(169)		274
Interest expense		(29)		1		(3)		—		(31)
Debt refinancing and other costs		(4)		—		(1)		—		(5)
Total interest expense		(33)		1		(4)		—		(36)
Earnings (loss) before taxes		183		153		71		(169)		238
Tax (provision) benefit		(23)		(38)		(18)		—		(79)
Equity in results of affiliates, net of tax		—		1		—		—		1
Net earnings (loss)		160		116		53		(169)		160
Less net earnings attributable to
noncontrolling interests		—		—		—		—		—
Net earnings (loss) attributable to	$	160	$	116	$	53	$	(169)	$	160
Ball Corporation

Comprehensive earnings (loss) attributable
to Ball Corporation	$	199	$	153	$	87	$	(240)	$	199


	Unaudited Condensed Consolidating Statement of Earnings
	Six Months Ended June 30, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	2,281	$	1,587	$	(83)	$	3,785

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,862)		(1,233)		83		(3,012)
Depreciation and amortization		(2)		(71)		(80)		—		(153)
Selling, general and administrative		(32)		(82)		(99)		—		(213)
Business consolidation and other activities		510		(24)		(726)		—		(240)
Equity in results of subsidiaries		(365)		352		—		13		—
Intercompany		110		(87)		(23)		—		—
		221		(1,774)		(2,161)		96		(3,618)

Earnings (loss) before interest and taxes		221		507		(574)		13		167
Interest expense		(75)		(1)		(3)		—		(79)
Debt refinancing and other costs		(96)		—		(10)		—		(106)
Total interest expense		(171)		(1)		(13)		—		(185)
Earnings (loss) before taxes		50		506		(587)		13		(18)
Tax (provision) benefit		161		(50)		118		—		229
Equity in results of affiliates, net of tax		—		—		—		—		—
Net earnings (loss)		211		456		(469)		13		211
Less net earnings attributable to
noncontrolling interests		—		—		—		—		—
Net earnings (loss) attributable to
Ball Corporation	$	211	$	456	$	(469)	$	13	$	211

Comprehensive earnings (loss) attributable
to Ball Corporation	$	258	$	513	$	(443)	$	(70)	$	258


	Unaudited Condensed Consolidating Statement of Earnings
	Six Months Ended June 30, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	2,464	$	1,653	$	(22)	$	4,095

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(2,046)		(1,312)		22		(3,336)
Depreciation and amortization		(3)		(63)		(73)		—		(139)
Selling, general and administrative		(47)		(85)		(102)		—		(234)
Business consolidation and other activities		24		(1)		(9)		—		14
Equity in results of subsidiaries		212		92		—		(304)		—
Intercompany		103		(86)		(17)		—		—
		289		(2,189)		(1,513)		(282)		(3,695)

Earnings (loss) before interest and taxes		289		275		140		(304)		400
Interest expense		(66)		2		(6)		—		(70)
Debt refinancing and other costs		(63)		—		(2)		—		(65)
Total interest expense		(129)		2		(8)		—		(135)
Earnings (loss) before taxes		160		277		132		(304)		265
Tax (provision) benefit		21		(68)		(32)		—		(79)
Equity in results of affiliates, net of tax		—		1		1		—		2
Net earnings (loss)		181		210		101		(304)		188
Less net earnings attributable to
noncontrolling interests		—		—		(7)		—		(7)
Net earnings (loss) attributable to
Ball Corporation	$	181	$	210	$	94	$	(304)	$	181

Comprehensive earnings (loss) attributable
to Ball Corporation	$	99	$	126	$	7	$	(133)	$	99


	Unaudited Condensed Consolidating Balance Sheet
	June 30, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	2,135	$	1	$	4,263	$	—	$	6,399
Receivables, net		255		238		1,417		—		1,910
Intercompany receivables		340		125		1,423		(1,888)		—
Inventories, net		—		511		972		—		1,483
Deferred taxes and other current assets		85		29		180		—		294
Total current assets		2,815		904		8,255		(1,888)		10,086
Noncurrent assets
Property, plant and equipment, net		17		1,059		3,320		—		4,396
Investment in subsidiaries		7,068		2,465		79		(9,612)		—
Goodwill		—		998		4,185		—		5,183
Intangible assets, net		20		81		1,951		—		2,052
Restricted cash		1,949		—		175		—		2,124
Other assets		189		23		1,024		—		1,236
Total assets	$	12,058	$	5,530		18,989	$	(11,500)	$	25,077

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	200	$	—		2,925	$	—	$	3,125
Accounts payable		122		796		1,250		—		2,168
Intercompany payables		1,501		23		365		(1,889)		—
Accrued employee costs		10		106		245		—		361
Acquisition purchase price payable		2,204		—		1,621		—		3,825
Other current liabilities		260		57		557		—		874
Total current liabilities		4,297		982		6,963		(1,889)		10,353
Noncurrent liabilities
Long-term debt		6,497		—		1,737		—		8,234
Employee benefit obligations		328		464		735		—		1,527
Intercompany long-term notes		(2,691)		95		2,596		—		—
Deferred taxes and other liabilities		(104)		142		1,091		—		1,129
Total liabilities		8,327		1,683		13,122		(1,889)		21,243

Common stock		995		635		4,426		(5,061)		995
Preferred stock		—		—		5		(5)		—
Retained earnings		4,733		3,729		1,591		(5,320)		4,733
Accumulated other comprehensive earnings (loss)		(593)		(517)		(258)		775		(593)
Treasury stock, at cost		(1,404)		—		—		—		(1,404)
Total Ball Corporation shareholders' equity		3,731		3,847		5,764		(9,611)		3,731
Noncontrolling interests		—		—		103		—		103
Total shareholders' equity		3,731		3,847		5,867		(9,611)		3,834
Total liabilities and shareholders' equity	$	12,058	$	5,530		18,989	$	(11,500)	$	25,077


	Unaudited Condensed Consolidating Balance Sheet
	December 31, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	5	$	—	$	219	$	—	$	224
Receivables, net		40		224		621		—		885
Intercompany receivables		137		517		6		(660)		—
Inventories, net		—		516		382		—		898
Deferred taxes and other current assets		49		84		44		—		177
Total current assets		231		1,341		1,272		(660)		2,184
Noncurrent assets
Property, plant and equipment, net		14		1,026		1,646		—		2,686
Investment in subsidiaries		3,688		2,135		79		(5,902)		—
Goodwill		—		967		1,210		—		2,177
Intangible assets, net		19		83		93		—		195
Restricted cash		2,154		—		—		—		2,154
Other assets		152		19		130		—		301
Total assets	$	6,258	$	5,571		4,430	$	(6,562)	$	9,697

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	1	$	—		76	$	—	$	77
Accounts payable		19		792		690		—		1,501
Intercompany payables		105		1		554		(660)		—
Accrued employee costs		16		133		80		—		229
Acquisition purchase price payable		—		—		—		—		—
Other current liabilities		146		60		129		—		335
Total current liabilities		287		986		1,529		(660)		2,142
Noncurrent liabilities
Long-term debt		4,859		—		115		—		4,974
Employee benefit obligations		342		466		339		—		1,147
Intercompany long-term notes		(371)		192		179		—		—
Deferred taxes and other liabilities		(110)		183		100		—		173
Total liabilities		5,007		1,827		2,262		(660)		8,436

Common stock		962		1,042		375		(1,417)		962
Preferred stock		—		—		5		(5)		—
Retained earnings		4,557		3,276		2,062		(5,338)		4,557
Accumulated other comprehensive earnings (loss)		(640)		(574)		(284)		858		(640)
Treasury stock, at cost		(3,628)		—		—		—		(3,628)
Total Ball Corporation shareholders' equity		1,251		3,744		2,158		(5,902)		1,251
Noncontrolling interests		—		—		10		—		10
Total shareholders' equity		1,251		3,744		2,168		(5,902)		1,261
Total liabilities and shareholders' equity	$	6,258	$	5,571		4,430	$	(6,562)	$	9,697


	Unaudited Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(23)	$	158	$	(99)	$	36


Cash flows from investing activities Capital expenditures		(6)		(97)		(170)		(273)
Business acquisition, net of cash acquired		4,506		(36)		(4,057)		413
Proceeds from dispositions, net of cash sold		884		—		1,931		2,815
Other, net		(91)		6		(1)		(86)
Cash provided by (used in) investing activities		5,293		(127)		(2,297)		2,869

Cash flows from financing activities
Long-term borrowings		2,195		—		1,629		3,824
Repayments of long-term borrowings		(590)		—		(31)		(621)
Net change in short-term borrowings		200		—		50		250
Proceeds from issuances of common stock		23		—		—		23
Acquisitions of treasury stock		(98)		—		—		(98)
Common dividends		(37)		—		—		(37)
Intercompany		(4,827)		(29)		4,856		—
Other, net		(11)		(1)		(9)		(21)
Cash provided by (used in) financing activities		(3,145)		(30)		6,495		3,320

Effect of exchange rate changes on cash		5		—		(55)		(50)

Change in cash and cash equivalents		2,130		1		4,044		6,175
Cash and cash equivalents – beginning of period		5		—		219		224
Cash and cash equivalents – end of period	$	2,135	$	1	$	4,263	$	6,399


	Unaudited Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(32)	$	226	$	17	$	211

Cash flows from investing activities Capital expenditures		(4)		(99)		(125)		(228)
Business acquisition, net of cash acquired		—		(29)		—		(29)
Other, net		9		12		1		22
Cash provided by (used in) investing activities		5		(116)		(124)		(235)

Cash flows from financing activities
Long-term borrowings		2,300		—		15		2,315
Repayments of long-term borrowings		(2,200)		—		(108)		(2,308)
Net change in short-term borrowings		111		(7)		1		105
Proceeds from issuances of common stock		19		—		—		19
Acquisitions of treasury stock		(3)		—		—		(3)
Common dividends		(36)		—		—		(36)
Intercompany		(130)		(103)		233		—
Other, net		(32)		—		(9)		(41)
Cash provided by (used in) financing activities		29		(110)		132		51

Effect of exchange rate changes on cash		(1)		—		10		9

Change in cash and cash equivalents		1		—		35		36
Cash and cash equivalents – beginning of period		2		—		189		191
Cash and cash equivalents – end of period	$	3	$	—	$	224	$	227