Subsidiary Guarantees of Debt (Tables)

6 Months Ended

Jun. 30, 2018

Subsidiary Guarantees of Debt

Schedule of Condensed Consolidating Statement of Earnings

	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

Schedule of Condensed Consolidating Balance Sheet

	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

Schedule of Condensed Consolidating Statement of Cash Flows

	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