23. 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 June 30, 2018, and December 31, 2017, and for the three and six months ended June 30, 2018 and 2017. The information for the three and six months ended June 30, 2017, has been retrospectively adjusted to reflect the addition of three new subsidiary guarantors of the company’s debt obligations in March 2018 and for transfers of ownership of group companies from a non-guarantor subsidiary to the parent. As part of the July 31, 2018, sale of the U.S. steel food and steel aerosol business, certain guarantor subsidiaries transferred to Ball Metalpack ceased to be guarantors of Ball’s debt obligations. This change will be reflected beginning in the third quarter of 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.


	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended June 30, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,802	$	1,515	$	(216)	$	3,101

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,524)		(1,176)		216		(2,484)
Depreciation and amortization		(2)		(52)		(124)		—		(178)
Selling, general and administrative		—		(73)		(54)		—		(127)
Business consolidation and other activities		(4)		(48)		(17)		—		(69)
Equity in results of subsidiaries		103		19		—		(122)		—
Intercompany		94		(110)		16		—		—
		191		(1,788)		(1,355)		94		(2,858)

Earnings (loss) before interest and taxes		191		14		160		(122)		243
Interest expense		(80)		4		(1)		—		(77)
Debt refinancing and other costs		—		—		—		—		—
Total interest expense		(80)		4		(1)		—		(77)
Earnings (loss) before taxes		111		18		159		(122)		166
Tax (provision) benefit		8		(15)		(39)		—		(46)
Equity in results of affiliates, net of tax		-		(5)		5		-		-
Net earnings (loss)		119		(2)		125		(122)		120
Less net earnings attributable to noncontrolling interests		—		—		(1)		—		(1)
Net earnings (loss) attributable to Ball Corporation	$	119	$	(2)	$	124	$	(122)	$	119

Comprehensive earnings (loss) attributable to Ball Corporation	$	25	$	(112)	$	13	$	99	$	25


	Unaudited Condensed Consolidating Statement of Earnings
	Three Months Ended June 30, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	-	$	1,492	$	1,416	$	(53)	$	2,855

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,254)		(1,069)		53		(2,270)
Depreciation and amortization		(2)		(53)		(174)		—		(229)
Selling, general and administrative		(55)		(28)		(45)		—		(128)
Business consolidation and other activities		(14)		(11)		(16)		—		(41)
Equity in results of subsidiaries		148		4		—		(152)		—
Intercompany		81		(42)		(39)		—		—
		158		(1,384)		(1,343)		(99)		(2,668)

Earnings (loss) before interest and taxes		158		108		73		(152)		187
Interest expense		(68)		1		(7)		—		(74)
Debt refinancing and other costs		—		—		(1)		—		(1)
Total interest expense		(68)		1		(8)		—		(75)
Earnings (loss) before taxes		90		109		65		(152)		112
Tax (provision) benefit		9		(24)		(7)		—		(22)
Equity in results of affiliates, net of tax		—		5		5		—		10
Net earnings (loss)		99		90		63		(152)		100
Less net earnings attributable to noncontrolling interests		—		—		(1)		—		(1)
Net earnings (loss) attributable to Ball Corporation	$	99	$	90	$	62	$	(152)	$	99

Comprehensive earnings (loss) attributable to Ball Corporation	$	(7)	$	(16)	$	(40)	$	56	$	(7)


	Condensed Consolidating Statement of Earnings
	For the Six Months Ended June 30, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	3,337	$	2,947	$	(398)	$	5,886

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(2,830)		(2,289)		398		(4,721)
Depreciation and amortization		(3)		(104)		(251)		—		(358)
Selling, general and administrative		(34)		(114)		(91)		—		(239)
Business consolidation and other activities		(17)		(54)		(28)		—		(99)
Equity in results of subsidiaries		265		53		—		(318)		—
Intercompany		176		(152)		(24)		—		—
		387		(3,201)		(2,683)		80		(5,417)

Earnings (loss) before interest and taxes		387		136		264		(318)		469
Interest expense		(156)		7		(1)		—		(150)
Debt refinancing and other costs		(1)		—		—		—		(1)
Total interest expense		(157)		7		(1)		—		(151)
Earnings (loss) before taxes		230		143		263		(318)		318
Tax (provision) benefit		14		(32)		(62)		—		(80)
Equity in results of affiliates, net of tax		—		(2)		9		—		7
Net earnings		244		109		210		(318)		245
Less net earnings attributable to noncontrolling interests		—		—		(1)		—		(1)
Net earnings attributable to Ball Corporation	$	244	$	109	$	209	$	(318)	$	244

Comprehensive earnings (loss) attributable to Ball Corporation	$	133	$	(4)	$	97	$	(93)	$	133


	Condensed Consolidating Statement of Earnings
	For the Six Months Ended June 30, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	2,779	$	2,618	$	(69)	$	5,328

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(2,316)		(1,998)		69		(4,245)
Depreciation and amortization		(3)		(101)		(273)		—		(377)
Selling, general and administrative		(100)		(76)		(95)		—		(271)
Business consolidation and other activities		(64)		(5)		(27)		—		(96)
Equity in results of subsidiaries		270		11		—		(281)		—
Intercompany		162		(83)		(79)		—		—
		265		(2,570)		(2,472)		(212)		(4,989)

Earnings (loss) before interest and taxes		265		209		146		(281)		339
Interest expense		(134)		2		(10)		—		(142)
Debt refinancing and other costs		—		—		(1)		—		(1)
Total interest expense		(134)		2		(11)		—		(143)
Earnings (loss) before taxes		131		211		135		(281)		196
Tax (provision) benefit		36		(63)		(17)		—		(44)
Equity in results of affiliates, net of tax		—		8		10		—		18
Net earnings		167		156		128		(281)		170
Less net earnings attributable to noncontrolling interests		—		—		(3)		—		(3)
Net earnings attributable to Ball Corporation	$	167	$	156	$	125	$	(281)	$	167

Comprehensive earnings (loss) attributable to Ball Corporation	$	189	$	153	$	100	$	(253)	$	189


	Condensed Consolidating Balance Sheet
	June 30, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	34	$	1	$	514	$	—	$	549
Receivables, net		10		507		1,496		—		2,013
Intercompany receivables		52		517		1,732		(2,301)		—
Inventories, net		—		497		760		—		1,257
Other current assets		35		42		129		—		206
Assets held for sale		—		849		1		—		850
Total current assets		131		2,413		4,632		(2,301)		4,875
Noncurrent assets
Property, plant and equipment, net		20		1,306		3,147		—		4,473
Investment in subsidiaries		10,546		3,818		(99)		(14,265)		—
Goodwill		—		1,191		3,325		—		4,516
Intangible assets, net		16		428		1,861		—		2,305
Other assets		168		281		917		—		1,366
Total assets	$	10,881	$	9,437	$	13,783	$	(16,566)	$	17,535

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	135	$	1	$	40	$	—	$	176
Accounts payable		15		885		1,839		—		2,739
Intercompany payables		1,488		129		683		(2,300)		—
Accrued employee costs		14		145		97		—		256
Other current liabilities		166		123		269		—		558
Liabilities held for sale		—		225		—		—		225
Total current liabilities		1,818		1,508		2,928		(2,300)		3,954
Noncurrent liabilities
Long-term debt		7,160		1		10		—		7,171
Employee benefit obligations		323		825		304		—		1,452
Intercompany long-term notes		(2,307)		774		1,533		—		—
Deferred taxes		(113)		100		679		—		666
Other liabilities		111		50		136		—		297
Total liabilities		6,992		3,258		5,590		(2,300)		13,540

Common stock		1,120		2,523		5,305		(7,828)		1,120
Preferred stock		—		—		5		(5)		—
Retained earnings		5,199		4,344		3,163		(7,507)		5,199
Accumulated other comprehensive earnings (loss)		(767)		(688)		(386)		1,074		(767)
Treasury stock, at cost		(1,663)		—		—		—		(1,663)
Total Ball Corporation shareholders' equity		3,889		6,179		8,087		(14,266)		3,889
Noncontrolling interests		—		—		106		—		106
Total shareholders' equity		3,889		6,179		8,193		(14,266)		3,995
Total liabilities and shareholders' equity	$	10,881	$	9,437	$	13,783	$	(16,566)	$	17,535


	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		48		88		—		145
Assets held for sale		—		4		1		—		5
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		470		(12,994)		—
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	$	12,858	$	(14,420)	$	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		2,893		(7,089)		4,987
Accumulated other comprehensive earnings (loss)		(656)		(575)		(274)		849		(656)
Treasury stock, at cost		(1,474)		—		—		—		(1,474)
Total Ball Corporation shareholders' equity		3,941		6,084		6,910		(12,994)		3,941
Noncontrolling interests		—		—		105		—		105
Total shareholders' equity		3,941		6,084		7,015		(12,994)		4,046
Total liabilities and shareholders' equity	$	8,915	$	9,816	$	12,858	$	(14,420)	$	17,169


	Condensed Consolidating Statement of Cash Flows
	For the Six Months Ended June 30, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(59)	$	(120)	$	613	$	434

Cash flows from investing activities
Capital expenditures		(4)		(265)		(175)		(444)
Business dispositions, net of cash sold		(45)		—		—		(45)
Other, net		—		10		29		39
Cash provided by (used in) investing activities		(49)		(255)		(146)		(450)

Cash flows from financing activities
Long-term borrowings		1,425		1		—		1,426
Repayments of long-term borrowings		(835)		(1)		(4)		(840)
Net change in short-term borrowings		(111)		—		(54)		(165)
Proceeds from issuances of common stock, net of shares used for taxes		9		—		—		9
Acquisitions of treasury stock		(184)		—		—		(184)
Common stock dividends		(70)		—		—		(70)
Intercompany		(82)		377		(295)		—
Other, net		(11)		(1)		—		(12)
Cash provided by (used in) financing activities		141		376		(353)		164

Effect of exchange rate changes on cash		(4)		—		(46)		(50)

Change in cash, cash equivalents and restricted cash		29		1		68		98
Cash, cash equivalents and restricted cash – beginning of period		5		—		454		459
Cash, cash equivalents and restricted cash – end of period	$	34	$	1	$	522	$	557


	Condensed Consolidating Statement of Cash Flows
	For the Six Months Ended June 30, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	219	$	196	$	(154)	$	261

Cash flows from investing activities
Capital expenditures		(15)		(139)		(86)		(240)
Business dispositions, net of cash sold		—		31		—		31
Other, net		2		16		(16)		2
Cash provided by (used in) investing activities		(13)		(92)		(102)		(207)

Cash flows from financing activities
Long-term borrowings		290		—		—		290
Repayments of long-term borrowings		(325)		—		(236)		(561)
Net change in short-term borrowings		131		1		(41)		91
Proceeds from issuances of common stock, net of shares used for taxes		14		—		—		14
Acquisitions of treasury stock		(3)		—		—		(3)
Common stock dividends		(58)		—		—		(58)
Intercompany		(252)		(92)		344		—
Other, net		—		(1)		—		(1)
Cash provided by (used in) financing activities		(203)		(92)		67		(228)

Effect of exchange rate changes on cash		—		—		8		8

Change in cash, cash equivalents and restricted cash		3		12		(181)		(166)
Cash, cash equivalents and restricted cash – beginning of period		1		(10)		616		607
Cash, cash equivalents and restricted cash – end of period	$	4	$	2	$	435	$	441