20. Subsidiary Guarantees of Debt

The following condensed consolidating financial information is presented in accordance with SEC Regulations S‑X Rule 3-10, Financial statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered, and comprises two separate and distinct presentations.

For purposes of each presentation of condensed consolidating financial information, the subsidiaries of the company providing the guarantees are referred to as the guarantor subsidiaries, and subsidiaries of the company other than the guarantor subsidiaries are referred to as the non-guarantor subsidiaries. The eliminating adjustments substantively consist of intercompany transactions and the elimination of equity investments and earnings of subsidiaries. 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.

Guarantees Relating to Shelf Registration Statement

The first presentation of condensed consolidating financial information relates to the Registration Statement on Form S-3 registering debt securities of the company and the full and unconditional, joint and several guarantees of such debt securities by certain 100 percent owned domestic subsidiaries of the company. The following is unaudited condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of March 31, 2017, and December 31, 2016, and for the three months ended March 31, 2017 and 2016. The condensed consolidating financial information presented below is not necessarily indicative of the financial position, results of operations, earnings or cash flows of the company or any of the company’s subsidiaries on a stand-alone basis.


	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended March 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,115	$	1,373	$	(15)	$	2,473

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(903)		(1,087)		15		(1,975)
Depreciation and amortization		(2)		(36)		(110)		—		(148)
Selling, general and administrative		(45)		(41)		(57)		—		(143)
Business consolidation and other activities		(51)		6		(10)		—		(55)
Equity in results of subsidiaries		123		4		—		(127)		—
Intercompany		81		(43)		(38)		—		—
		106		(1,013)		(1,302)		(112)		(2,321)

Earnings (loss) before interest and taxes		106		102		71		(127)		152
Interest expense		(65)		1		(4)		—		(68)
Total interest expense		(65)		1		(4)		—		(68)
Earnings (loss) before taxes		41		103		67		(127)		84
Tax (provision) benefit		27		(37)		(12)		—		(22)
Equity in results of affiliates, net of tax		—		—		8		—		8
Net earnings (loss)		68		66		63		(127)		70
Less net earnings attributable to
noncontrolling interests		—		—		(2)		—		(2)
Net earnings (loss) attributable to
Ball Corporation	$	68	$	66	$	61	$	(127)	$	68

Comprehensive earnings (loss) attributable to Ball Corporation	$	196	$	159	$	146	$	(305)	$	196


	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended March 31, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,075	$	706	$	(25)	$	1,756

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(886)		(555)		25		(1,416)
Depreciation and amortization		(1)		(36)		(38)		—		(75)
Selling, general and administrative		(20)		(40)		(48)		—		(108)
Business consolidation and other activities		(260)		(17)		10		—		(267)
Equity in results of subsidiaries		84		36		—		(120)		—
Intercompany		52		(41)		(11)		—		—
		(145)		(984)		(642)		(95)		(1,866)

Earnings (loss) before interest and taxes		(145)		91		64		(120)		(110)
Interest expense		(38)		—		—		—		(38)
Debt refinancing and other costs		(59)		—		(2)		—		(61)
Total interest expense		(97)		—		(2)		—		(99)
Earnings (loss) before taxes		(242)		91		62		(120)		(209)
Tax (provision) benefit		115		(19)		(13)		—		83
Equity in results of affiliates, net of tax		—		(1)		—		—		(1)
Net earnings (loss)		(127)		71		49		(120)		(127)
Less net earnings attributable to
noncontrolling interests		—		—		—		—		—
Net earnings (loss) attributable to	$	(127)	$	71	$	49	$	(120)	$	(127)
Ball Corporation

Comprehensive earnings (loss) attributable to Ball Corporation	$	(96)	$	100	$	66	$	(166)	$	(96)


	Unaudited Condensed Consolidating Balance Sheet
	March 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	5	$	—	$	453	$	—	$	458
Receivables, net		77		551		1,067		—		1,695
Intercompany receivables		41		117		941		(1,099)		—
Inventories, net		—		565		989		—		1,554
Other current assets		33		48		119		—		200
Total current assets		156		1,281		3,569		(1,099)		3,907
Noncurrent assets
Property, plant and equipment, net		23		1,116		3,264		—		4,403
Investment in subsidiaries		8,039		2,372		79		(10,490)		—
Goodwill		3		981		4,168		—		5,152
Intangible assets, net		18		76		1,823		—		1,917
Other assets		80		23		1,162		—		1,265
Total assets	$	8,319	$	5,849	$	14,065	$	(11,589)	$	16,644

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	258	$	—	$	239	$	—	$	497
Accounts payable		15		679		1,136		—		1,830
Intercompany payables		1,012		39		60		(1,111)		—
Accrued employee costs		25		92		147		—		264
Other current liabilities		156		72		199		—		427
Total current liabilities		1,466		882		1,781		(1,111)		3,018
Noncurrent liabilities
Long-term debt		6,493		—		983		—		7,476
Employee benefit obligations		331		445		711		—		1,487
Intercompany long-term notes		(3,370)		421		2,937		12		—
Deferred taxes		(227)		226		856		—		855
Other liabilities		7		(1)		79		—		85
Total liabilities		4,700		1,973		7,347		(1,099)		12,921

Common stock		1,040		635		4,426		(5,061)		1,040
Preferred stock		—		—		5		(5)		—
Retained earnings		4,784		3,960		2,650		(6,610)		4,784
Accumulated other comprehensive earnings (loss)		(813)		(719)		(467)		1,186		(813)
Treasury stock, at cost		(1,392)		—		—		—		(1,392)
Total Ball Corporation shareholders' equity		3,619		3,876		6,614		(10,490)		3,619
Noncontrolling interests		—		—		104		—		104
Total shareholders' equity		3,619		3,876		6,718		(10,490)		3,723
Total liabilities and shareholders' equity	$	8,319	$	5,849	$	14,065	$	(11,589)	$	16,644


	Unaudited Condensed Consolidating Balance Sheet
	December 31, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	2	$	(11)	$	606	$	—	$	597
Receivables, net		96		450		945		—		1,491
Intercompany receivables		39		125		963		(1,127)		—
Inventories, net		—		516		897		—		1,413
Other current assets		40		33		79		—		152
Total current assets		177		1,113		3,490		(1,127)		3,653
Noncurrent assets
Property, plant and equipment, net		23		1,087		3,277		—		4,387
Investment in subsidiaries		7,815		2,289		79		(10,183)		—
Goodwill		—		990		4,105		—		5,095
Intangible assets, net		18		76		1,840		—		1,934
Other assets		94		20		990		—		1,104
Total assets	$	8,127	$	5,575	$	13,781	$	(11,310)	$	16,173

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	141	$	—	$	81	$	—	$	222
Accounts payable		18		771		1,244		—		2,033
Intercompany payables		1,010		52		65		(1,127)		—
Accrued employee costs		25		135		155		—		315
Other current liabilities		138		65		196		—		399
Total current liabilities		1,332		1,023		1,741		(1,127)		2,969
Noncurrent liabilities
Long-term debt		6,337		—		973		—		7,310
Employee benefit obligations		347		440		710		—		1,497
Intercompany long-term notes		(3,142)		178		2,964		—		—
Deferred taxes		(193)		218		734		—		759
Other liabilities		12		—		85		—		97
Total liabilities		4,693		1,859		7,207		(1,127)		12,632

Common stock		1,038		635		4,426		(5,061)		1,038
Preferred stock		—		—		5		(5)		—
Retained earnings		4,739		3,893		2,589		(6,482)		4,739
Accumulated other comprehensive earnings (loss)		(942)		(812)		(552)		1,365		(941)
Treasury stock, at cost		(1,401)		—		—		—		(1,401)
Total Ball Corporation shareholders' equity		3,434		3,716		6,468		(10,183)		3,435
Noncontrolling interests		—		—		106		—		106
Total shareholders' equity		3,434		3,716		6,574		(10,183)		3,541
Total liabilities and shareholders' equity	$	8,127	$	5,575	$	13,781	$	(11,310)	$	16,173


	Unaudited Condensed Consolidating Statement of Cash Flows
	Three Months Ended March 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	7	$	(182)	$	(223)	$	(398)


Cash flows from investing activities capital expenditures		(4)		(82)		(39)		(125)
Business dispositions, net of cash sold		—		31		—		31
Other, net		2		8		(7)		3
Cash provided by (used in) investing activities		(2)		(43)		(46)		(91)

Cash flows from financing activities
Long-term borrowings		185		—		—		185
Repayments of long-term borrowings		(48)		—		(2)		(50)
Net change in short-term borrowings		116		—		157		273
Proceeds from issuances of common stock, net of shares used for taxes		(1)		—		—		(1)
Acquisitions of treasury stock		(3)		—		—		(3)
Common dividends		(23)		—		—		(23)
Intercompany		(229)		237		(8)		—
Other, net		—		(1)		—		(1)
Cash provided by (used in) financing activities		(3)		236		147		380

Effect of exchange rate changes on cash		1		—		(31)		(30)

Change in cash and cash equivalents		3		11		(153)		(139)
Cash and cash equivalents – beginning of period		2		(11)		606		597
Cash and cash equivalents – end of period	$	5	$	—	$	453	$	458


	Unaudited Condensed Consolidating Statement of Cash Flows
	Three Months Ended March 31, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(36)	$	(130)	$	(220)	$	(386)

Cash flows from investing activities capital expenditures		(7)		(44)		(87)		(138)
Business acquisition, net of cash acquired		—		(36)		—		(36)
Other, net		(13)		2		—		(11)
Cash provided by (used in) investing activities		(20)		(78)		(87)		(185)

Cash flows from financing activities
Long-term borrowings		795		—		6		801
Repayments of long-term borrowings		(390)		—		(17)		(407)
Net change in short-term borrowings		98		—		212		310
Proceeds from issuances of common stock, net of shares used for taxes		7		—		—		7
Acquisitions of treasury stock		(98)		—		—		(98)
Common dividends		(19)		—		—		(19)
Intercompany		(331)		214		117		—
Other, net		(13)		—		(9)		(22)
Cash provided by (used in) financing activities		49		214		309		572

Effect of exchange rate changes on cash		5		17		(42)		(20)

Change in cash and cash equivalents		(2)		23		(40)		(19)
Cash and cash equivalents – beginning of period		5		—		219		224
Cash and cash equivalents – end of period	$	3	$	23	$	179	$	205

Guarantees Relating to Senior Notes

The second presentation of condensed consolidating financial information relates to the existing senior notes issued by the company, and the full and unconditional guarantee of such senior notes on a joint and several basis by certain domestic subsidiaries of the company. Each of the guarantor subsidiaries is 100 percent owned by the company. As described in the supplemental indentures governing the company’s existing senior notes, the senior notes are to be guaranteed by any of the company’s domestic subsidiaries that guarantee any other indebtedness of the company. The following is unaudited condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of March 31, 2017, and December 31, 2016 and for the three months ended March 31, 2017 and 2016. The condensed consolidating financial information presented below is not necessarily indicative of the financial position, results of operations, earnings or cash flows of the company or any of the company’s subsidiaries on a stand-alone basis.


	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended March 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,115	$	1,373	$	(15)	$	2,473

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(903)		(1,087)		15		(1,975)
Depreciation and amortization		(2)		(36)		(110)		—		(148)
Selling, general and administrative		(45)		(41)		(57)		—		(143)
Business consolidation and other activities		(51)		5		(9)		—		(55)
Equity in results of subsidiaries		123		3		(7)		(119)		—
Intercompany		81		(41)		(40)		—		—
		106		(1,013)		(1,310)		(104)		(2,321)

Earnings (loss) before interest and taxes		106		102		63		(119)		152
Interest expense		(65)		1		(4)		—		(68)
Total interest expense		(65)		1		(4)		—		(68)
Earnings (loss) before taxes		41		103		59		(119)		84
Tax (provision) benefit		27		(37)		(12)		—		(22)
Equity in results of affiliates, net of tax		—		—		8		—		8
Net earnings (loss)		68		66		55		(119)		70
Less net earnings attributable to
noncontrolling interests		—		—		(2)		—		(2)
Net earnings (loss) attributable to
Ball Corporation	$	68	$	66	$	53	$	(119)	$	68

Comprehensive earnings (loss) attributable to Ball Corporation	$	196	$	168	$	144	$	(312)	$	196


	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended March 31, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,075	$	706	$	(25)	$	1,756

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(886)		(555)		25		(1,416)
Depreciation and amortization		(1)		(36)		(38)		—		(75)
Selling, general and administrative		(20)		(40)		(48)		—		(108)
Business consolidation and other activities		(260)		(4)		(3)		—		(267)
Equity in results of subsidiaries		84		36		—		(120)		—
Intercompany		52		(41)		(11)		—		—
		(145)		(971)		(655)		(95)		(1,866)

Earnings (loss) before interest and taxes		(145)		104		51		(120)		(110)
Interest expense		(38)		—		—		—		(38)
Debt refinancing and other costs		(59)		—		(2)		—		(61)
Total interest expense		(97)		—		(2)		—		(99)
Earnings (loss) before taxes		(242)		104		49		(120)		(209)
Tax (provision) benefit		115		(19)		(13)		—		83
Equity in results of affiliates, net of tax		—		(1)		—		—		(1)
Net earnings (loss)		(127)		84		36		(120)		(127)
Less net earnings attributable to
noncontrolling interests		—		—		—		—		—
Net earnings (loss) attributable to	$	(127)	$	84	$	36	$	(120)	$	(127)
Ball Corporation

Comprehensive earnings (loss) attributable to Ball Corporation	$	(96)	$	113	$	53	$	(166)	$	(96)


	Unaudited Condensed Consolidating Balance Sheet
	March 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	5	$	—	$	453	$	—	$	458
Receivables, net		77		551		1,067		—		1,695
Intercompany receivables		41		465		941		(1,447)		—
Inventories, net		—		565		989		—		1,554
Other current assets		33		54		113		—		200
Total current assets		156		1,635		3,563		(1,447)		3,907
Noncurrent assets
Property, plant and equipment, net		23		1,116		3,264		—		4,403
Investment in subsidiaries		8,039		4,380		424		(12,843)		—
Goodwill		3		977		4,172		—		5,152
Intangible assets, net		18		76		1,823		—		1,917
Other assets		80		297		888		—		1,265
Total assets	$	8,319	$	8,481	$	14,134	$	(14,290)	$	16,644

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	258	$	—	$	239	$	—	$	497
Accounts payable		15		680		1,135		—		1,830
Intercompany payables		1,012		40		408		(1,460)		—
Accrued employee costs		25		103		136		—		264
Other current liabilities		156		76		195		—		427
Total current liabilities		1,466		899		2,113		(1,460)		3,018
Noncurrent liabilities
Long-term debt		6,493		—		983		—		7,476
Employee benefit obligations		331		754		402		—		1,487
Intercompany long-term notes		(3,370)		2,278		1,079		13		—
Deferred taxes		(227)		268		814		—		855
Other liabilities		7		(1)		79		—		85
Total liabilities		4,700		4,198		5,470		(1,447)		12,921

Common stock		1,040		1,120		6,301		(7,421)		1,040
Preferred stock		—		—		5		(5)		—
Retained earnings		4,784		3,898		2,715		(6,613)		4,784
Accumulated other comprehensive earnings (loss)		(813)		(735)		(461)		1,196		(813)
Treasury stock, at cost		(1,392)		—		—		—		(1,392)
Total Ball Corporation shareholders' equity		3,619		4,283		8,560		(12,843)		3,619
Noncontrolling interests		—		—		104		—		104
Total shareholders' equity		3,619		4,283		8,664		(12,843)		3,723
Total liabilities and shareholders' equity	$	8,319	$	8,481	$	14,134	$	(14,290)	$	16,644


	Unaudited Condensed Consolidating Balance Sheet
	December 31, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	2	$	(11)	$	606	$	—	$	597
Receivables, net		96		450		945		—		1,491
Intercompany receivables		39		467		963		(1,469)		—
Inventories, net		—		516		897		—		1,413
Other current assets		40		39		73		—		152
Total current assets		177		1,461		3,484		(1,469)		3,653
Noncurrent assets
Property, plant and equipment, net		23		1,087		3,277		—		4,387
Investment in subsidiaries		7,815		4,291		423		(12,529)		—
Goodwill		—		985		4,110		—		5,095
Intangible assets, net		18		76		1,840		—		1,934
Other assets		94		306		704		—		1,104
Total assets	$	8,127	$	8,206	$	13,838	$	(13,998)	$	16,173

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	141	$	—	$	81	$	—	$	222
Accounts payable		18		772		1,243		—		2,033
Intercompany payables		1,010		53		408		(1,471)		—
Accrued employee costs		25		152		138		—		315
Other current liabilities		138		69		192		—		399
Total current liabilities		1,332		1,046		2,062		(1,471)		2,969
Noncurrent liabilities
Long-term debt		6,337		—		973		—		7,310
Employee benefit obligations		347		760		390		—		1,497
Intercompany long-term notes		(3,142)		2,018		1,122		2		—
Deferred taxes		(193)		261		691		—		759
Other liabilities		12		6		79		—		97
Total liabilities		4,693		4,091		5,317		(1,469)		12,632

Common stock		1,038		1,120		6,301		(7,421)		1,038
Preferred stock		—		—		5		(5)		—
Retained earnings		4,739		3,832		2,661		(6,493)		4,739
Accumulated other comprehensive earnings (loss)		(942)		(837)		(552)		1,390		(941)
Treasury stock, at cost		(1,401)		—		—		—		(1,401)
Total Ball Corporation shareholders' equity		3,434		4,115		8,415		(12,529)		3,435
Noncontrolling interests		—		—		106		—		106
Total shareholders' equity		3,434		4,115		8,521		(12,529)		3,541
Total liabilities and shareholders' equity	$	8,127	$	8,206	$	13,838	$	(13,998)	$	16,173


	Unaudited Condensed Consolidating Statement of Cash Flows
	Three Months Ended March 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	7	$	(194)	$	(211)	$	(398)

Cash flows from investing activities capital expenditures		(4)		(82)		(39)		(125)
Proceeds from dispositions, net of cash sold		—		31		—		31
Other, net		2		8		(7)		3
Cash provided by (used in) investing activities		(2)		(43)		(46)		(91)

Cash flows from financing activities
Long-term borrowings		185		—		—		185
Repayments of long-term borrowings		(48)		—		(2)		(50)
Net change in short-term borrowings		116		—		157		273
Proceeds from issuances of common stock, net of shares used for taxes		(1)		—		—		(1)
Acquisitions of treasury stock		(3)		—		—		(3)
Common dividends		(23)		—		—		(23)
Intercompany		(229)		249		(20)		—
Other, net		—		(1)		—		(1)
Cash provided by (used in) financing activities		(3)		248		135		380

Effect of exchange rate changes on cash		1		—		(31)		(30)

Change in cash and cash equivalents		3		11		(153)		(139)
Cash and cash equivalents – beginning of period		2		(11)		606		597
Cash and cash equivalents – end of period	$	5	$	—	$	453	$	458


	Unaudited Condensed Consolidating Statement of Cash Flows
	Three Months Ended March 31, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(36)	$	(130)	$	(220)	$	(386)

Cash flows from investing activities capital expenditures		(7)		(44)		(87)		(138)
Business acquisition, net of cash acquired		—		(36)		—		(36)
Other, net		(13)		2		—		(11)
Cash provided by (used in) investing activities		(20)		(78)		(87)		(185)

Cash flows from financing activities
Long-term borrowings		795		—		6		801
Repayments of long-term borrowings		(390)		—		(17)		(407)
Net change in short-term borrowings		98		—		212		310
Proceeds from issuances of common stock, net of shares used for taxes		7		—		—		7
Acquisitions of treasury stock		(98)		—		—		(98)
Common dividends		(19)		—		—		(19)
Intercompany		(331)		196		135		—
Other, net		(13)		—		(9)		(22)
Cash provided by (used in) financing activities		49		196		327		572

Effect of exchange rate changes on cash		5		17		(42)		(20)

Change in cash and cash equivalents		(2)		5		(22)		(19)
Cash and cash equivalents – beginning of period		5		—		219		224
Cash and cash equivalents – end of period	$	3	$	5	$	197	$	205