23. 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. For purposes of the 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 under SEC regulations.

The company’s senior notes are guaranteed on a full and unconditional guarantee 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 condensed consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of December 31, 2017 and 2016, and for the three years ended December 31, 2017, 2016 and 2015. 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.


	Condensed Consolidating Statement of Earnings
	For the Year Ended December 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	4,839	$	6,317	$	(173)	$	10,983

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(3,980)		(4,910)		173		(8,717)
Depreciation and amortization		(8)		(150)		(571)		—		(729)
Selling, general and administrative		(168)		(121)		(225)		—		(514)
Business consolidation and other activities		(120)		(57)		(44)		—		(221)
Equity in results of subsidiaries		673		191		(40)		(824)		—
Intercompany		301		(149)		(152)		—		—
		678		(4,266)		(5,942)		(651)		(10,181)

Earnings (loss) before interest and taxes		678		573		375		(824)		802
Interest expense		(275)		6		(16)		—		(285)
Debt refinancing and other costs		—		—		(3)		—		(3)
Total interest expense		(275)		6		(19)		—		(288)
Earnings (loss) before taxes		403		579		356		(824)		514
Tax (provision) benefit		(29)		(112)		(24)		—		(165)
Equity in results of affiliates, net of tax		—		1		30		—		31
Net earnings		374		468		362		(824)		380
Less net earnings attributable to noncontrolling interests		—		—		(6)		—		(6)
Net earnings attributable to Ball Corporation	$	374	$	468	$	356	$	(824)	$	374

Comprehensive earnings (loss) attributable to Ball Corporation	$	659	$	731	$	639	$	(1,370)	$	659


	Condensed Consolidating Statement of Earnings
	For the Year Ended December 31, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	4,589	$	4,698	$	(226)	$	9,061

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(3,756)		(3,766)		226		(7,296)
Depreciation and amortization		(5)		(142)		(306)		—		(453)
Selling, general and administrative		(58)		(204)		(250)		—		(512)
Business consolidation and other activities		(577)		(49)		289		—		(337)
Equity in results of subsidiaries		692		503		(33)		(1,162)		—
Intercompany		345		(259)		(86)		—		—
		397		(3,907)		(4,152)		(936)		(8,598)

Earnings (loss) before interest and taxes		397		682		546		(1,162)		463
Interest expense		(207)		—		(22)		—		(229)
Debt refinancing and other costs		(97)		—		(12)		—		(109)
Total interest expense		(304)		—		(34)		—		(338)
Earnings (loss) before taxes		93		682		512		(1,162)		125
Tax (provision) benefit		170		(122)		78		—		126
Equity in results of affiliates, net of tax		—		—		15		—		15
Net earnings		263		560		605		(1,162)		266
Less net earnings attributable to noncontrolling interests		—		—		(3)		—		(3)
Net earnings attributable to Ball Corporation	$	263	$	560	$	602	$	(1,162)	$	263

Comprehensive earnings (loss) attributable to Ball Corporation	$	(38)	$	296	$	334	$	(630)	$	(38)


	Condensed Consolidating Statement of Earnings
	For the Year Ended December 31, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	4,788	$	3,259	$	(50)	$	7,997

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(3,959)		(2,551)		50		(6,460)
Depreciation and amortization		(6)		(132)		(148)		—		(286)
Selling, general and administrative		(80)		(170)		(200)		—		(450)
Business consolidation and other activities		(159)		(18)		(18)		—		(195)
Equity in results of subsidiaries		453		215		—		(668)		—
Intercompany		207		(175)		(32)		—		—
		415		(4,239)		(2,949)		(618)		(7,391)

Earnings (loss) before interest and taxes		415		549		310		(668)		606
Interest expense		(139)		5		(9)		—		(143)
Debt refinancing and other costs		(115)		—		(2)		—		(117)
Total interest expense		(254)		5		(11)		—		(260)
Earnings (loss) before taxes		161		554		299		(668)		346
Tax (provision) benefit		120		(110)		(57)		—		(47)
Equity in results of affiliates, net of tax		—		2		2		—		4
Net earnings		281		446		244		(668)		303
Less net earnings attributable to noncontrolling interests		—		—		(22)		—		(22)
Net earnings attributable to Ball Corporation	$	281	$	446	$	222	$	(668)	$	281

Comprehensive earnings (loss) attributable to Ball Corporation	$	163	$	328	$	100	$	(428)	$	163


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

Assets
Current assets
Cash and cash equivalents	$	5	$	—	$	443	$	—	$	448
Receivables, net		3		233		1,398		—		1,634
Intercompany receivables		39		470		912		(1,421)		—
Inventories, net		—		605		921		—		1,526
Other current assets		9		48		93		—		150
Total current assets		56		1,356		3,767		(1,421)		3,758
Noncurrent assets
Property, plant and equipment, net		20		1,275		3,315		—		4,610
Investment in subsidiaries		8,639		4,662		389		(13,690)		—
Goodwill		—		981		3,952		—		4,933
Intangible assets, net		15		65		2,382		—		2,462
Other assets		185		296		925		—		1,406
Total assets	$	8,915	$	8,635	$	14,730	$	(15,111)	$	17,169

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	351	$	—	$	102	$	—	$	453
Accounts payable		14		986		1,762		—		2,762
Intercompany payables		705		76		640		(1,421)		—
Accrued employee costs		28		157		167		—		352
Other current liabilities		170		81		289		—		540
Total current liabilities		1,268		1,300		2,960		(1,421)		4,107
Noncurrent liabilities
Long-term debt		6,504		—		14		—		6,518
Employee benefit obligations		333		707		423		—		1,463
Intercompany long-term notes		(3,172)		1,599		1,572		1		—
Deferred taxes		(109)		256		548		—		695
Other liabilities		150		23		167		—		340
Total liabilities		4,974		3,885		5,684		(1,420)		13,123

Common stock		1,084		1,128		6,291		(7,419)		1,084
Preferred stock		—		—		5		(5)		—
Retained earnings		4,987		4,197		2,914		(7,111)		4,987
Accumulated other comprehensive earnings (loss)		(656)		(575)		(269)		844		(656)
Treasury stock, at cost		(1,474)		—		—		—		(1,474)
Total Ball Corporation shareholders' equity		3,941		4,750		8,941		(13,691)		3,941
Noncontrolling interests		—		—		105		—		105
Total shareholders' equity		3,941		4,750		9,046		(13,691)		4,046
Total liabilities and shareholders' equity	$	8,915	$	8,635	$	14,730	$	(15,111)	$	17,169


	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		(308)		232		515		—		439
Other liabilities		127		35		255		—		417
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


	Condensed Consolidating Statement of Cash Flows
	For the Year Ended December 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	234	$	645	$	599	$	1,478

Cash flows from investing activities
Capital expenditures		(6)		(298)		(252)		(556)
Business dispositions, net of cash sold		17		31		(50)		(2)
Other, net		(2)		34		(19)		13
Cash provided by (used in) investing activities		9		(233)		(321)		(545)

Cash flows from financing activities
Long-term borrowings		765		—		—		765
Repayments of long-term borrowings		(741)		—		(1,069)		(1,810)
Net change in short-term borrowings		174		—		10		184
Proceeds from issuances of common stock, net of shares used for taxes		27		—		—		27
Acquisitions of treasury stock		(103)		—		—		(103)
Common stock dividends		(129)		—		—		(129)
Intercompany		(226)		(398)		624		—
Other, net		—		(3)		(4)		(7)
Cash provided by (used in) financing activities		(233)		(401)		(439)		(1,073)

Effect of exchange rate changes on cash		(7)		—		(2)		(9)

Change in cash and cash equivalents		3		11		(163)		(149)
Cash and cash equivalents – beginning of period		2		(11)		606		597
Cash and cash equivalents – end of period	$	5	$	—	$	443	$	448


	Condensed Consolidating Statement of Cash Flows
	For the Year Ended December 31, 2016
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(1,051)	$	85	$	1,160	$	194

Cash flows from investing activities
Capital expenditures		(15)		(222)		(369)		(606)
Business acquisition, net of cash acquired		2,303		29		(5,711)		(3,379)
Business dispositions, net of cash sold		1,010		24		1,904		2,938
Decrease in restricted cash		1,966		—		—		1,966
Settlement of Rexam acquisition related derivatives		(252)		—		—		(252)
Other, net		2		4		(1)		5
Cash provided by (used in) investing activities		5,014		(165)		(4,177)		672

Cash flows from financing activities
Long-term borrowings		2,610		—		1,760		4,370
Repayments of long-term borrowings		(1,038)		—		(3,586)		(4,624)
Net change in short-term borrowings		71		(29)		(19)		23
Proceeds from issuances of common stock, net of shares used for taxes		48		—		—		48
Acquisitions of treasury stock		(107)		—		—		(107)
Common stock dividends		(83)		—		—		(83)
Intercompany		(5,467)		98		5,369		—
Other, net		(2)		(3)		(9)		(14)
Cash provided by (used in) financing activities		(3,968)		66		3,515		(387)

Effect of exchange rate changes on cash		2		3		(111)		(106)

Change in cash and cash equivalents		(3)		(11)		387		373
Cash and cash equivalents – beginning of period		5		—		219		224
Cash and cash equivalents – end of period	$	2	$	(11)	$	606	$	597


	Condensed Consolidating Statement of Cash Flows
	For the Year Ended December 31, 2015
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(13)	$	568	$	452	$	1,007

Cash flows from investing activities
Capital expenditures		(8)		(194)		(326)		(528)
Business acquisition, net of cash acquired		—		(29)		—		(29)
Business dispositions, net of cash sold		—		—		1		1
Increase in restricted cash		(2,183)		—		—		(2,183)
Settlement of Rexam acquisition related derivatives		(16)		—		—		(16)
Other, net		23		8		3		34
Cash provided by (used in) investing activities		(2,184)		(215)		(322)		(2,721)

Cash flows from financing activities
Long-term borrowings		4,509		—		15		4,524
Repayments of long-term borrowings		(2,301)		—		(129)		(2,430)
Net change in short-term borrowings		(2)		(7)		(84)		(93)
Proceeds from issuances of common stock, net of shares used for taxes		36		—		—		36
Acquisitions of treasury stock		(136)		—		—		(136)
Common stock dividends		(72)		—		—		(72)
Intercompany		249		(341)		92		—
Other, net		(73)		(2)		(17)		(92)
Cash provided by (used in) financing activities		2,210		(350)		(123)		1,737

Effect of exchange rate changes on cash		(10)		(3)		23		10

Change in cash and cash equivalents		3		—		30		33
Cash and cash equivalents – beginning of period		2		—		189		191
Cash and cash equivalents – end of period	$	5	$	—	$	219	$	224