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 September 30, 2018, and December 31, 2017, and for the three and nine months ended September 30, 2018 and 2017. The information for the three and nine months ended September 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 ownership transfers of group companies from a non-guarantor subsidiary to the parent. In addition, as a result of the July 31, 2018, sale of the U.S. steel food and steel aerosol business, certain guarantor subsidiaries ceased to be guarantors of Ball’s debt obligations. 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 September 30, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,666	$	1,481	$	(201)	$	2,946

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,405)		(1,158)		201		(2,362)
Depreciation and amortization		(1)		(49)		(121)		—		(171)
Selling, general and administrative		(244)		179		(48)		—		(113)
Business consolidation and other activities		(53)		13		8		—		(32)
Equity in results of subsidiaries		369		8		—		(377)		—
Intercompany		52		(6)		(46)		—		—
		123		(1,260)		(1,365)		(176)		(2,678)

Earnings (loss) before interest and taxes		123		406		116		(377)		268
Interest expense		(79)		3		—		—		(76)
Debt refinancing and other costs		—		—		—		—		—
Total interest expense		(79)		3		—		—		(76)
Earnings (loss) before taxes		44		409		116		(377)		192
Tax (provision) benefit		15		(103)		(52)		—		(140)
Equity in results of affiliates, net of tax		—		3		4		—		7
Net earnings (loss)		59		309		68		(377)		59
Less net earnings attributable to noncontrolling interests		—		—		—		—		—
Net earnings (loss) attributable to Ball Corporation	$	59	$	309	$	68	$	(377)	$	59

Comprehensive earnings (loss) attributable to Ball Corporation	$	26	$	313	$	8	$	(321)	$	26


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

Net sales	$	—	$	1,448	$	1,480	$	(20)	$	2,908

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,198)		(1,160)		20		(2,338)
Depreciation and amortization		(1)		(52)		(109)		—		(162)
Selling, general and administrative		(41)		(39)		(47)		—		(127)
Business consolidation and other activities		(18)		(70)		(69)		—		(157)
Equity in results of subsidiaries		72		(30)		—		(42)		—
Intercompany		79		(41)		(38)		—		—
		91		(1,430)		(1,423)		(22)		(2,784)

Earnings (loss) before interest and taxes		91		18		57		(42)		124
Interest expense		(71)		2		(5)		—		(74)
Debt refinancing and other costs		—		—		—		—		—
Total interest expense		(71)		2		(5)		—		(74)
Earnings (loss) before taxes		20		20		52		(42)		50
Tax (provision) benefit		28		(9)		(23)		—		(4)
Equity in results of affiliates, net of tax		—		2		3		—		5
Net earnings (loss)		48		13		32		(42)		51
Less net earnings attributable to noncontrolling interests		—		—		(3)		—		(3)
Net earnings (loss) attributable to Ball Corporation	$	48	$	13	$	29	$	(42)	$	48

Comprehensive earnings (loss) attributable to Ball Corporation	$	42	$	12	$	21	$	(33)	$	42


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

Net sales	$	—	$	5,003	$	4,428	$	(599)	$	8,832

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(4,235)		(3,447)		599		(7,083)
Depreciation and amortization		(4)		(153)		(372)		—		(529)
Selling, general and administrative		(278)		65		(139)		—		(352)
Business consolidation and other activities		(70)		(41)		(20)		—		(131)
Equity in results of subsidiaries		634		61		—		(695)		—
Intercompany		228		(158)		(70)		—		—
		510		(4,461)		(4,048)		(96)		(8,095)

Earnings (loss) before interest and taxes		510		542		380		(695)		737
Interest expense		(235)		10		(1)		—		(226)
Debt refinancing and other costs		(1)		—		—		—		(1)
Total interest expense		(236)		10		(1)		—		(227)
Earnings (loss) before taxes		274		552		379		(695)		510
Tax (provision) benefit		29		(135)		(114)		—		(220)
Equity in results of affiliates, net of tax		—		1		13		—		14
Net earnings		303		418		278		(695)		304
Less net earnings attributable to noncontrolling interests		—		—		(1)		—		(1)
Net earnings attributable to Ball Corporation	$	303	$	418	$	277	$	(695)	$	303

Comprehensive earnings (loss) attributable to Ball Corporation	$	159	$	309	$	105	$	(414)	$	159


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

Net sales	$	—	$	4,227	$	4,099	$	(90)	$	8,236

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(3,514)		(3,159)		90		(6,583)
Depreciation and amortization		(5)		(153)		(381)		—		(539)
Selling, general and administrative		(141)		(115)		(142)		—		(398)
Business consolidation and other activities		(82)		(76)		(95)		—		(253)
Equity in results of subsidiaries		343		(19)		—		(324)		—
Intercompany		241		(124)		(117)		—		—
		356		(4,001)		(3,894)		(234)		(7,773)

Earnings (loss) before interest and taxes		356		226		205		(324)		463
Interest expense		(205)		4		(15)		—		(216)
Debt refinancing and other costs		—		—		(1)		—		(1)
Total interest expense		(205)		4		(16)		—		(217)
Earnings (loss) before taxes		151		230		189		(324)		246
Tax (provision) benefit		64		(72)		(40)		—		(48)
Equity in results of affiliates, net of tax		—		11		12		—		23
Net earnings		215		169		161		(324)		221
Less net earnings attributable to noncontrolling interests		—		—		(6)		—		(6)
Net earnings attributable to Ball Corporation	$	215	$	169	$	155	$	(324)	$	215

Comprehensive earnings (loss) attributable to Ball Corporation	$	231	$	165	$	122	$	(287)	$	231


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

Assets
Current assets
Cash and cash equivalents	$	5	$	—	$	593	$	—	$	598
Receivables, net		23		522		1,327		—		1,872
Intercompany receivables		71		529		1,690		(2,290)		—
Inventories, net		—		469		774		—		1,243
Other current assets		33		32		82		—		147
Total current assets		132		1,552		4,466		(2,290)		3,860
Noncurrent assets
Property, plant and equipment, net		19		1,358		3,131		—		4,508
Investment in subsidiaries		10,917		3,772		(100)		(14,589)		—
Goodwill		—		1,190		3,307		—		4,497
Intangible assets, net		17		417		1,813		—		2,247
Other assets		186		216		956		—		1,358
Total assets	$	11,271	$	8,505	$	13,573	$	(16,879)	$	16,470

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	108	$	—	$	42	$	—	$	150
Accounts payable		48		1,000		1,905		—		2,953
Intercompany payables		2,314		86		495		(2,895)		—
Accrued employee costs		21		139		100		—		260
Other current liabilities		95		126		229		—		450
Total current liabilities		2,586		1,351		2,771		(2,895)		3,813
Noncurrent liabilities
Long-term debt		6,515		—		8		—		6,523
Employee benefit obligations		654		468		299		—		1,421
Intercompany long-term notes		(2,128)		41		1,481		606		—
Deferred taxes		(106)		108		670		—		672
Other liabilities		110		47		139		—		296
Total liabilities		7,631		2,015		5,368		(2,289)		12,725

Common stock		1,142		2,523		5,310		(7,833)		1,142
Preferred stock		—		—		5		(5)		—
Retained earnings		5,224		4,651		3,231		(7,882)		5,224
Accumulated other comprehensive earnings (loss)		(800)		(684)		(446)		1,130		(800)
Treasury stock, at cost		(1,926)		—		—		—		(1,926)
Total Ball Corporation shareholders' equity		3,640		6,490		8,100		(14,590)		3,640
Noncontrolling interests		—		—		105		—		105
Total shareholders' equity		3,640		6,490		8,205		(14,590)		3,745
Total liabilities and shareholders' equity	$	11,271	$	8,505	$	13,573	$	(16,879)	$	16,470


	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		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 Nine Months Ended September 30, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(103)	$	148	$	982	$	1,027

Cash flows from investing activities
Capital expenditures		(5)		(356)		(255)		(616)
Business dispositions, net of cash sold		(53)		604		—		551
Other, net		(1)		18		33		50
Cash provided by (used in) investing activities		(59)		266		(222)		(15)

Cash flows from financing activities
Long-term borrowings		1,475		—		—		1,475
Repayments of long-term borrowings		(1,525)		—		(6)		(1,531)
Net change in short-term borrowings		(138)		—		(51)		(189)
Proceeds from issuances of common stock, net of shares used for taxes		25		—		—		25
Acquisitions of treasury stock		(464)		—		—		(464)
Common stock dividends		(104)		—		—		(104)
Intercompany		905		(413)		(492)		—
Other, net		(12)		(1)		—		(13)
Cash provided by (used in) financing activities		162		(414)		(549)		(801)

Effect of exchange rate changes on cash		—		—		(59)		(59)

Change in cash, cash equivalents and restricted cash		—		—		152		152
Cash, cash equivalents and restricted cash – beginning of period		5		—		454		459
Cash, cash equivalents and restricted cash – end of period	$	5	$	—	$	606	$	611


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

Cash provided by (used in) operating activities	$	266	$	368	$	110	$	744

Cash flows from investing activities
Capital expenditures		(5)		(234)		(165)		(404)
Business dispositions, net of cash sold		—		31		—		31
Other, net		1		18		(16)		3
Cash provided by (used in) investing activities		(4)		(185)		(181)		(370)

Cash flows from financing activities
Long-term borrowings		440		—		—		440
Repayments of long-term borrowings		(433)		—		(476)		(909)
Net change in short-term borrowings		151		1		68		220
Proceeds from issuances of common stock, net of shares used for taxes		18		—		—		18
Acquisitions of treasury stock		(103)		—		—		(103)
Common stock dividends		(93)		—		—		(93)
Intercompany		(231)		(170)		401		—
Other, net		—		(2)		—		(2)
Cash provided by (used in) financing activities		(251)		(171)		(7)		(429)

Effect of exchange rate changes on cash		(8)		—		19		11

Change in cash, cash equivalents and restricted cash		3		12		(59)		(44)
Cash, cash equivalents and restricted cash – beginning of period		1		(10)		616		607
Cash, cash equivalents and restricted cash – end of period	$	4	$	2	$	557	$	563