Subsidiary Guarantees of Debt (Tables)

9 Months Ended

Sep. 30, 2016

Subsidiary Guarantees of Debt

Schedule of Condensed Consolidating Statement of Earnings

	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended September 30, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Net sales	$	—	$	1,214	$	1,689	$	(88)	$	2,815
Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(992)		(1,434)		88		(2,338)
Depreciation and amortization		(2)		(33)		(112)		—		(147)
Selling, general and administrative		(31)		(43)		(60)		(1)		(135)
Business consolidation and other activities		(154)		(7)		82		—		(79)
Equity in results of subsidiaries		308		8		—		(316)		—
Intercompany		78		(44)		(34)		—		—
		199		(1,111)		(1,558)		(229)		(2,699)
Earnings (loss) before interest and taxes		199		103		131		(317)		116
Interest expense		(66)		—		(14)		—		(80)
Debt refinancing and other costs		—		—		(2)		—		(2)
Total interest expense		(66)		—		(16)		—		(82)
Earnings (loss) before taxes		133		103		115		(317)		34
Tax (provision) benefit		(133)		56		39		—		(38)
Equity in results of affiliates, net of tax		—		1		6		—		7
Net earnings		—		160		160		(317)		3
Less net earnings attributable to
noncontrolling interests		—		—		(3)		—		(3)
Net earnings attributable to
Ball Corporation	$	—	$	160	$	157	$	(317)	$	—
Comprehensive earnings (loss) attributable to Ball Corporation	$	(24)	$	140	$	137	$	(277)	$	(24)

	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended September 30, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Net sales	$	—	$	1,264	$	846	$	(13)	$	2,097
Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,039)		(664)		13		(1,690)
Depreciation and amortization		(1)		(34)		(37)		—		(72)
Selling, general and administrative		(14)		(45)		(48)		—		(107)
Business consolidation and other activities		(129)		(20)		(3)		—		(152)
Equity in results of subsidiaries		129		63		—		(192)		—
Intercompany		51		(44)		(7)		—		—
		36		(1,119)		(759)		(179)		(2,021)
Earnings (loss) before interest and taxes		36		145		87		(192)		76
Interest expense		(37)		1		(2)		—		(38)
Debt refinancing and other costs		(21)		—		—		—		(21)
Total interest expense		(58)		1		(2)		—		(59)
Earnings (loss) before taxes		(22)		146		85		(192)		17
Tax (provision) benefit		67		(20)		(16)		—		31
Equity in results of affiliates, net of tax		—		1		1		—		2
Net earnings		45		127		70		(192)		50
Less net earnings attributable to
noncontrolling interests		—		—		(5)		—		(5)
Net earnings attributable to	$	45	$	127	$	65	$	(192)	$	45
Ball Corporation
Comprehensive earnings (loss) attributable to Ball Corporation	$	28	$	110	$	48	$	(158)	$	28

	Unaudited Condensed Consolidating Statement of Earnings
	Nine Months Ended September 30, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Net sales	$	—	$	3,495	$	3,276	$	(171)	$	6,600
Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(2,854)		(2,668)		171		(5,351)
Depreciation and amortization		(4)		(104)		(191)		—		(299)
Selling, general and administrative		(63)		(126)		(159)		—		(348)
Business consolidation and other activities		355		(30)		(644)		—		(319)
Equity in results of subsidiaries		(57)		359		—		(302)		—
Intercompany		189		(131)		(58)		—		—
		420		(2,886)		(3,720)		(131)		(6,317)
Earnings (loss) before interest and taxes		420		609		(444)		(302)		283
Interest expense		(141)		(1)		(17)		—		(159)
Debt refinancing and other costs		(97)		—		(11)		—		(108)
Total interest expense		(238)		(1)		(28)		—		(267)
Earnings (loss) before taxes		182		608		(472)		(302)		16
Tax (provision) benefit		28		6		157		—		191
Equity in results of affiliates, net of tax		—		—		6		—		6
Net earnings		210		614		(309)		(302)		213
Less net earnings attributable to
noncontrolling interests		—		—		(3)		—		(3)
Net earnings attributable to
Ball Corporation	$	210	$	614	$	(312)	$	(302)	$	210
Comprehensive earnings (loss) attributable to Ball Corporation	$	233	$	651	$	(306)	$	(345)	$	233

	Unaudited Condensed Consolidating Statement of Earnings
	Nine Months Ended September 30, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Net sales	$	—	$	3,729	$	2,498	$	(35)	$	6,192
Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(3,085)		(1,976)		35		(5,026)
Depreciation and amortization		(4)		(98)		(110)		—		(212)
Selling, general and administrative		(60)		(130)		(150)		—		(340)
Business consolidation and other activities		(105)		(21)		(12)		—		(138)
Equity in results of subsidiaries		341		155		—		(496)		—
Intercompany		153		(130)		(23)		—		—
		325		(3,309)		(2,271)		(461)		(5,716)
Earnings (loss) before interest and taxes		325		420		227		(496)		476
Interest expense		(103)		4		(8)		—		(107)
Debt refinancing and other costs		(84)		—		(2)		—		(86)
Total interest expense		(187)		4		(10)		—		(193)
Earnings (loss) before taxes		138		424		217		(496)		283
Tax (provision) benefit		88		(88)		(48)		—		(48)
Equity in results of affiliates, net of tax		—		1		2		—		3
Net earnings		226		337		171		(496)		238
Less net earnings attributable to
noncontrolling interests		—		—		(12)		—		(12)
Net earnings attributable to
Ball Corporation	$	226	$	337	$	159	$	(496)	$	226
Comprehensive earnings (loss) attributable to Ball Corporation	$	128	$	236	$	55	$	(291)	$	128

Schedule of Condensed Consolidating Balance Sheet

	Unaudited Condensed Consolidating Balance Sheet
	September 30, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Assets
Current assets
Cash and cash equivalents	$	54	$	1	$	590	$	—	$	645
Receivables, net		123		514		1,152		—		1,789
Intercompany receivables		30		121		52		(203)		—
Inventories, net		—		497		921		—		1,418
Other current assets		148		38		66		—		252
Total current assets		355		1,171		2,781		(203)		4,104
Noncurrent assets
Property, plant and equipment, net		19		1,085		3,336		—		4,440
Investment in subsidiaries		7,358		2,449		78		(9,885)		—
Goodwill		—		990		4,221		—		5,211
Intangible assets, net		19		78		1,949		—		2,046
Other assets		213		20		1,026		—		1,259
Total assets	$	7,964	$	5,793		13,391	$	(10,088)	$	17,060
Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	271	$	—		102	$	—	$	373
Accounts payable		15		798		1,051		—		1,864
Intercompany payables		102		52		55		(209)		—
Accrued employee costs		20		111		171		—		302
Other current liabilities		107		54		243		—		404
Total current liabilities		515		1,015		1,622		(209)		2,943
Noncurrent liabilities
Long-term debt		6,530		—		1,194		—		7,724
Employee benefit obligations		344		437		727		—		1,508
Intercompany long-term notes		(3,129)		139		2,984		6		—
Deferred taxes and other liabilities		(9)		217		857		—		1,065
Total liabilities		4,251		1,808		7,384		(203)		13,240
Common stock		1,019		635		4,426		(5,061)		1,019
Preferred stock		—		—		5		(5)		—
Retained earnings		4,708		3,887		1,747		(5,634)		4,708
Accumulated other comprehensive earnings (loss)		(616)		(537)		(278)		815		(616)
Treasury stock, at cost		(1,398)		—		—		—		(1,398)
Total Ball Corporation shareholders' equity		3,713		3,985		5,900		(9,885)		3,713
Noncontrolling interests		—		—		107		—		107
Total shareholders' equity		3,713		3,985		6,007		(9,885)		3,820
Total liabilities and shareholders' equity	$	7,964	$	5,793		13,391	$	(10,088)	$	17,060

	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
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
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

Schedule of Condensed Consolidating Statement of Cash Flows

	Unaudited Condensed Consolidating Statement of Cash Flows
	Nine Months Ended September 30, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Consolidated Total
Cash provided by (used in) operating activities	$	(385)	$	155	$	(203)	$	(433)
Cash flows from investing activities capital expenditures		(10)		(170)		(218)		(398)
Business acquisition, net of cash acquired		2,303		(36)		(5,646)		(3,379)
Proceeds from dispositions, net of cash sold		1,010		—		1,931		2,941
Decrease in restricted cash		1,966		—		—		1,966
Settlement of Rexam acquisition related derivatives		(252)		—		—		(252)
Other, net		—		7		(5)		2
Cash provided by (used in) investing activities		5,017		(199)		(3,938)		880
Cash flows from financing activities
Long-term borrowings		2,610		—		1,760		4,370
Repayments of long-term borrowings		(921)		—		(3,427)		(4,348)
Net change in short-term borrowings		200		—		(44)		156
Proceeds from issuances of common stock		38		—		—		38
Acquisitions of treasury stock		(98)		—		—		(98)
Common dividends		(60)		—		—		(60)
Intercompany		(6,351)		46		6,305		—
Other, net		(5)		(1)		(9)		(15)
Cash provided by (used in) financing activities		(4,587)		45		4,585		43
Effect of exchange rate changes on cash		4		—		(73)		(69)
Change in cash and cash equivalents		49		1		371		421
Cash and cash equivalents – beginning of period		5		—		219		224
Cash and cash equivalents – end of period	$	54	$	1	$	590	$	645

	Unaudited Condensed Consolidating Statement of Cash Flows
	Nine Months Ended September 30, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Consolidated Total
Cash provided by (used in) operating activities	$	7	$	419	$	171	$	597
Cash flows from investing activities capital expenditures		(5)		(141)		(211)		(357)
Business acquisition, net of cash acquired		—		(29)		—		(29)
Settlement of Rexam acquisition related derivatives		(16)		—		—		(16)
Other, net		21		12		1		34
Cash provided by (used in) investing activities		—		(158)		(210)		(368)
Cash flows from financing activities
Long-term borrowings		2,300		—		15		2,315
Repayments of long-term borrowings		(2,301)		—		(108)		(2,408)
Net change in short-term borrowings		21		(7)		97		111
Proceeds from issuances of common stock		26		—		—		26
Acquisitions of treasury stock		(136)		—		—		(136)
Common dividends		(54)		—		—		(54)
Intercompany		176		(254)		78		—
Other, net		(30)		—		(9)		(39)
Cash provided by (used in) financing activities		2		(261)		73		(185)
Effect of exchange rate changes on cash		(7)		—		17		10
Change in cash and cash equivalents		2		—		51		54
Cash and cash equivalents – beginning of period		2		—		189		191
Cash and cash equivalents – end of period	$	4	$	—	$	240	$	245