22. Subsidiary Guarantees of Debt

The following unaudited 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 unaudited 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 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 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, 2018, and December 31, 2017, and for the first quarter of 2018 and 2017. The information for the three months ended March 31, 2017, has been retrospectively adjusted to reflect the addition of three new subsidiary guarantors of the company’s debt obligations in March 2018. The unaudited 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 Three Months Ended March 31, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,535	$	1,432	$	(182)	$	2,785

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,306)		(1,113)		182		(2,237)
Depreciation and amortization		(1)		(52)		(127)		—		(180)
Selling, general and administrative		(34)		(41)		(37)		—		(112)
Business consolidation and other activities		(13)		(6)		(11)		—		(30)
Equity in results of subsidiaries		162		34		5		(201)		—
Intercompany		82		(42)		(40)		—		—
		196		(1,413)		(1,323)		(19)		(2,559)

Earnings (loss) before interest and taxes		196		122		109		(201)		226
Interest expense		(76)		3		—		—		(73)
Debt refinancing and other costs		(1)		—		—		—		(1)
Total interest expense		(77)		3		—		—		(74)
Earnings (loss) before taxes		119		125		109		(201)		152
Tax (provision) benefit		6		(17)		(23)		—		(34)
Equity in results of affiliates, net of tax		—		3		4		—		7
Net earnings		125		111		90		(201)		125
Less net earnings attributable to noncontrolling interests		—		—		—		—		—
Net earnings attributable to Ball Corporation	$	125	$	111	$	90	$	(201)	$	125

Comprehensive earnings (loss) attributable to Ball Corporation	$	108	$	108	$	89	$	(197)	$	108


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

Net sales	$	—	$	1,287	$	1,203	$	(17)	$	2,473

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,062)		(930)		17		(1,975)
Depreciation and amortization		(2)		(47)		(99)		—		(148)
Selling, general and administrative		(45)		(48)		(50)		—		(143)
Business consolidation and other activities		(51)		6		(10)		—		(55)
Equity in results of subsidiaries		123		7		(7)		(123)		—
Intercompany		81		(41)		(40)		—		—
		106		(1,185)		(1,136)		(106)		(2,321)

Earnings (loss) before interest and taxes		106		102		67		(123)		152
Interest expense		(65)		1		(4)		—		(68)
Debt refinancing and other costs		—		—		—		—		—
Total interest expense		(65)		1		(4)		—		(68)
Earnings (loss) before taxes		41		103		63		(123)		84
Tax (provision) benefit		27		(40)		(9)		—		(22)
Equity in results of affiliates, net of tax		—		3		5		—		8
Net earnings		68		66		59		(123)		70
Less net earnings attributable to noncontrolling interests		—		—		(2)		—		(2)
Net earnings attributable to Ball Corporation	$	68	$	66	$	57	$	(123)	$	68

Comprehensive earnings (loss) attributable to Ball Corporation	$	196	$	169	$	142	$	(311)	$	196


	Condensed Consolidating Balance Sheet
	March 31, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	—	$	—	$	477	$	—	$	477
Receivables, net		4		489		1,597		—		2,090
Intercompany receivables		67		501		167		(735)		—
Inventories, net		—		722		725		—		1,447
Other current assets		15		49		82		—		146
Total current assets		86		1,761		3,048		(735)		4,160
Noncurrent assets
Property, plant and equipment, net		23		1,439		3,265		—		4,727
Investment in subsidiaries		8,837		3,945		397		(13,179)		—
Goodwill		—		1,545		3,425		—		4,970
Intangible assets, net		15		458		1,959		—		2,432
Other assets		191		292		959		—		1,442
Total assets	$	9,152	$	9,440	$	13,053	$	(13,914)	$	17,731

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	157	$	—	$	180	$	—	$	337
Accounts payable		18		1,002		1,802		—		2,822
Intercompany payables		(100)		120		715		(735)		—
Accrued employee costs		18		115		88		—		221
Other current liabilities		124		126		275		—		525
Total current liabilities		217		1,363		3,060		(735)		3,905
Noncurrent liabilities
Long-term debt		7,118		1		12		—		7,131
Employee benefit obligations		329		827		328		—		1,484
Intercompany long-term notes		(2,622)		864		1,758		—		—
Deferred taxes		(109)		107		692		—		690
Other liabilities		186		48		149		—		383
Total liabilities		5,119		3,210		5,999		(735)		13,593

Common stock		1,100		2,463		4,286		(6,749)		1,100
Preferred stock		—		—		5		(5)		—
Retained earnings		5,114		4,345		2,939		(7,284)		5,114
Accumulated other comprehensive earnings (loss)		(673)		(578)		(281)		859		(673)
Treasury stock, at cost		(1,508)		—		—		—		(1,508)
Total Ball Corporation shareholders' equity		4,033		6,230		6,949		(13,179)		4,033
Noncontrolling interests		—		—		105		—		105
Total shareholders' equity		4,033		6,230		7,054		(13,179)		4,138
Total liabilities and shareholders' equity	$	9,152	$	9,440	$	13,053	$	(13,914)	$	17,731


	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		260		1,371		—		1,634
Intercompany receivables		39		1,285		102		(1,426)		—
Inventories, net		—		673		853		—		1,526
Other current assets		9		52		89		—		150
Total current assets		56		2,270		2,858		(1,426)		3,758
Noncurrent assets
Property, plant and equipment, net		20		1,364		3,226		—		4,610
Investment in subsidiaries		8,639		3,885		389		(12,913)		—
Goodwill		—		1,545		3,388		—		4,933
Intangible assets, net		15		470		1,977		—		2,462
Other assets		185		282		939		—		1,406
Total assets	$	8,915	$	9,816	$	12,777	$	(14,339)	$	17,169

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	351	$	—	$	102	$	—	$	453
Accounts payable		14		1,084		1,664		—		2,762
Intercompany payables		705		82		639		(1,426)		—
Accrued employee costs		28		182		142		—		352
Other current liabilities		170		111		259		—		540
Total current liabilities		1,268		1,459		2,806		(1,426)		4,107
Noncurrent liabilities
Long-term debt		6,504		—		14		—		6,518
Employee benefit obligations		333		811		319		—		1,463
Intercompany long-term notes		(3,172)		1,305		1,867		—		—
Deferred taxes		(109)		107		697		—		695
Other liabilities		150		50		140		—		340
Total liabilities		4,974		3,732		5,843		(1,426)		13,123

Common stock		1,084		2,463		4,286		(6,749)		1,084
Preferred stock		—		—		5		(5)		—
Retained earnings		4,987		4,196		2,818		(7,014)		4,987
Accumulated other comprehensive earnings (loss)		(656)		(575)		(280)		855		(656)
Treasury stock, at cost		(1,474)		—		—		—		(1,474)
Total Ball Corporation shareholders' equity		3,941		6,084		6,829		(12,913)		3,941
Noncontrolling interests		—		—		105		—		105
Total shareholders' equity		3,941		6,084		6,934		(12,913)		4,046
Total liabilities and shareholders' equity	$	8,915	$	9,816	$	12,777	$	(14,339)	$	17,169


	Condensed Consolidating Statement of Cash Flows
	For the Three Months Ended March 31, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	21	$	(226)	$	131	$	(74)

Cash flows from investing activities
Capital expenditures		(3)		(155)		(84)		(242)
Business dispositions, net of cash sold		(45)		—		—		(45)
Other, net		(2)		2		3		3
Cash provided by (used in) investing activities		(50)		(153)		(81)		(284)

Cash flows from financing activities
Long-term borrowings		1,160		1		1		1,162
Repayments of long-term borrowings		(680)		(1)		(2)		(683)
Net change in short-term borrowings		(89)		—		75		(14)
Proceeds from issuances of common stock, net of shares used for taxes		—		—		—		—
Acquisitions of treasury stock		(35)		—		—		(35)
Common stock dividends		(35)		—		—		(35)
Intercompany		(287)		379		(92)		—
Other, net		(10)		—		(1)		(11)
Cash provided by (used in) financing activities		24		379		(19)		384

Effect of exchange rate changes on cash		—		—		1		1

Change in cash, cash equivalents and restricted cash		(5)		—		32		27
Cash, cash equivalents and restricted cash – beginning of period		5		—		454		459
Cash, cash equivalents and restricted cash – end of period	$	—	$	—	$	486	$	486


	Condensed Consolidating Statement of Cash Flows
	For the 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)	$	(226)	$	(401)

Cash flows from investing activities
Capital expenditures		(4)		(82)		(39)		(125)
Business dispositions, net of cash sold		—		31		—		31
Other, net		2		13		(12)		3
Cash provided by (used in) investing activities		(2)		(38)		(51)		(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		1		156		273
Proceeds from issuances of common stock, net of shares used for taxes		(1)		—		—		(1)
Acquisitions of treasury stock		(3)		—		—		(3)
Common stock dividends		(23)		—		—		(23)
Intercompany		(229)		232		(3)		—
Other, net		—		(1)		—		(1)
Cash provided by (used in) financing activities		(3)		232		151		380

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

Change in cash, cash equivalents and restricted cash		3		12		(157)		(142)
Cash, cash equivalents and restricted cash – beginning of period		2		(11)		616		607
Cash, cash equivalents and restricted cash – end of period	$	5	$	1	$	459	$	465