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 March 31, 2019, and December 31, 2018, and for the three months ended March 31, 2019 and 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 March 31, 2019
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Net sales	$	—	$	1,549	$	1,435	$	(199)	$	2,785

Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(1,324)		(1,128)		199		(2,253)
Depreciation and amortization		(1)		(48)		(121)		—		(170)
Selling, general and administrative		(24)		(54)		(49)		—		(127)
Business consolidation and other activities		(6)		2		(10)		—		(14)
Equity in results of subsidiaries		136		20		—		(156)		—
Intercompany		61		(33)		(28)		—		—
		166		(1,437)		(1,336)		43		(2,564)

Earnings (loss) before interest and taxes		166		112		99		(156)		221
Interest expense		(78)		2		(1)		—		(77)
Debt refinancing and other costs		(4)		—		—		—		(4)
Total interest expense		(82)		2		(1)		—		(81)
Earnings (loss) before taxes		84		114		98		(156)		140
Tax (provision) benefit		33		(21)		(22)		—		(10)
Equity in results of affiliates, net of tax		—		(16)		3		—		(13)
Net earnings (loss)		117		77		79		(156)		117
Less net earnings attributable to noncontrolling interests		—		—		—		—		—
Net earnings (loss) attributable to Ball Corporation	$	117	$	77	$	79	$	(156)	$	117

Comprehensive earnings (loss) attributable to Ball Corporation	$	242	$	242	$	185	$	(427)	$	242


	Unaudited Condensed Consolidating Statement of Earnings
	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 (loss)		125		111		90		(201)		125
Less net earnings attributable to noncontrolling interests		—		—		—		—		—
Net earnings (loss) attributable to Ball Corporation	$	125	$	111	$	90	$	(201)	$	125

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


	Condensed Consolidating Balance Sheet
	March 31, 2019
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Adjustments		Consolidated Total

Assets
Current assets
Cash and cash equivalents	$	14	$	—	$	589	$	—	$	603
Receivables, net		4		658		1,223		—		1,885
Intercompany receivables		90		490		1,674		(2,254)		—
Inventories, net		—		559		716		—		1,275
Other current assets		59		31		94		—		184
Assets held for sale		—		4		448		—		452
Total current assets		167		1,742		4,744		(2,254)		4,399
Noncurrent assets
Property, plant and equipment, net		28		1,390		2,942		—		4,360
Investment in subsidiaries		11,392		3,913		(99)		(15,206)		—
Goodwill		—		1,191		3,219		—		4,410
Intangible assets, net		18		401		1,718		—		2,137
Other assets		262		293		1,062		—		1,617
Total assets	$	11,867	$	8,930	$	13,586	$	(17,460)	$	16,923

Liabilities and Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	336	$	—	$	63	$	—	$	399
Accounts payable		18		1,022		1,699		—		2,739
Intercompany payables		2,307		65		488		(2,860)		—
Accrued employee costs		40		94		90		—		224
Other current liabilities		125		139		236		—		500
Liabilities held for sale		—		—		173		—		173
Total current liabilities		2,826		1,320		2,749		(2,860)		4,035
Noncurrent liabilities
Long-term debt		6,713		—		6		—		6,719
Employee benefit obligations		897		295		287		—		1,479
Intercompany long-term notes		(1,977)		113		1,258		606		—
Deferred taxes		(247)		244		628		—		625
Long-term deferred tax and other liabilities		109		119		188		—		416
Total liabilities		8,321		2,091		5,116		(2,254)		13,274

Common stock		1,154		2,523		5,319		(7,842)		1,154
Preferred stock		—		—		5		(5)		—
Retained earnings		5,504		4,815		3,398		(8,213)		5,504
Accumulated other comprehensive earnings (loss)		(789)		(499)		(355)		854		(789)
Treasury stock, at cost		(2,323)		—		—		—		(2,323)
Total Ball Corporation equity		3,546		6,839		8,367		(15,206)		3,546
Noncontrolling interests		—		—		103		—		103
Total equity		3,546		6,839		8,470		(15,206)		3,649
Total liabilities and equity	$	11,867	$	8,930	$	13,586	$	(17,460)	$	16,923


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

Assets
Current assets
Cash and cash equivalents	$	4	$	—	$	717	$	—	$	721
Receivables, net		21		613		1,168		—		1,802
Intercompany receivables		66		495		1,657		(2,218)		—
Inventories, net		—		527		744		—		1,271
Other current assets		32		31		77		—		140
Assets held for sale		—		4		2		—		6
Total current assets		123		1,670		4,365		(2,218)		3,940
Noncurrent assets
Property, plant and equipment, net		24		1,378		3,140		—		4,542
Investment in subsidiaries		11,145		3,779		(99)		(14,825)		—
Goodwill		—		1,191		3,284		—		4,475
Intangible assets, net		18		409		1,761		—		2,188
Other assets		213		215		981		—		1,409
Total assets	$	11,523	$	8,642	$	13,432	$	(17,043)	$	16,554

Liabilities and Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	173	$	—	$	46	$	—	$	219
Accounts payable		50		1,178		1,867		—		3,095
Intercompany payables		2,310		49		466		(2,825)		—
Accrued employee costs		39		144		106		—		289
Other current liabilities		153		119		220		—		492
Total current liabilities		2,725		1,490		2,705		(2,825)		4,095
Noncurrent liabilities
Long-term debt		6,504		—		6		—		6,510
Employee benefit obligations		871		286		298		—		1,455
Intercompany long-term notes		(1,977)		3		1,368		606		—
Deferred taxes		(172)		169		648		—		645
Other liabilities		114		45		128		—		287
Total liabilities		8,065		1,993		5,153		(2,219)		12,992

Common stock		1,157		2,523		5,314		(7,837)		1,157
Preferred stock		—		—		5		(5)		—
Retained earnings		5,341		4,712		3,316		(8,028)		5,341
Accumulated other comprehensive earnings (loss)		(835)		(586)		(460)		1,046		(835)
Treasury stock, at cost		(2,205)		—		—		—		(2,205)
Total Ball Corporation equity		3,458		6,649		8,175		(14,824)		3,458
Noncontrolling interests		—		—		104		—		104
Total equity		3,458		6,649		8,279		(14,824)		3,562
Total liabilities and equity	$	11,523	$	8,642	$	13,432	$	(17,043)	$	16,554


	Condensed Consolidating Statement of Cash Flows
	For the Three Months Ended March 31, 2019
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated Total

Cash provided by (used in) operating activities	$	(171)	$	(53)	$	95	$	(129)

Cash flows from investing activities
Capital expenditures		(4)		(72)		(78)		(154)
Business acquisition, net of cash acquired		—		—		—		—
Other, net		1		—		(10)		(9)
Cash provided by (used in) investing activities		(3)		(72)		(88)		(163)

Cash flows from financing activities
Long-term borrowings		670		—		1		671
Repayments of long-term borrowings		(410)		—		(2)		(412)
Net change in short-term borrowings		143		—		17		160
Proceeds from issuances of common stock, net of shares used for taxes		(4)		—		—		(4)
Acquisitions of treasury stock		(146)		—		—		(146)
Common stock dividends		(34)		—		—		(34)
Intercompany		(25)		125		(100)		—
Other, net		(10)		—		—		(10)
Cash provided by (used in) financing activities		184		125		(84)		225

Effect of exchange rate changes on cash		—		—		11		11

Change in cash, cash equivalents and restricted cash		10		—		(66)		(56)
Cash, cash equivalents and restricted cash – beginning of period		4		—		724		728
Cash, cash equivalents and restricted cash – end of period	$	14	$	—	$	658	$	672


	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)
Proceeds from 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