Subsidiary Guarantees of Debt

12 Months Ended

Dec. 31, 2019

Subsidiary Guarantees of Debt

Subsidiary Guarantee of Debt

25. Subsidiary Guarantees of Debt

The following 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 presentation purposes, 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 on a 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 to be guaranteed by any of the company’s domestic subsidiaries that guarantee any other indebtedness of the company. The following is condensed consolidating financial information for the company, segregating the guarantor and non-guarantor subsidiaries, as of December 31, 2019 and 2018, and for the three years ended December 31, 2019, 2018 and 2017. 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 and are reflected in the following tables on a prospective basis. The 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 Year Ended December 31, 2019
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Net sales	$	—	$	6,540	$	5,733	$	(799)	$	11,474
Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(5,591)		(4,411)		799		(9,203)
Depreciation and amortization		(5)		(199)		(474)		—		(678)
Selling, general and administrative		(74)		(179)		(164)		—		(417)
Business consolidation and other activities		(26)		(40)		(178)		—		(244)
Equity in results of subsidiaries		711		141		—		(852)		—
Intercompany		221		(121)		(100)		—		—
		827		(5,989)		(5,327)		(53)		(10,542)
Earnings (loss) before interest and taxes		827		551		406		(852)		932
Interest expense		(318)		5		(4)		—		(317)
Debt refinancing and other costs		(7)		—		—		—		(7)
Total interest expense		(325)		5		(4)		—		(324)
Earnings (loss) before taxes		502		556		402		(852)		608
Tax (provision) benefit		64		(49)		(86)		—		(71)
Equity in results of affiliates, net of tax		—		(10)		9		—		(1)
Net earnings		566		497		325		(852)		536
Less net earnings attributable to noncontrolling interests		—		—		30		—		30
Net earnings attributable to Ball Corporation	$	566	$	497	$	355	$	(852)	$	566
Comprehensive earnings (loss) attributable to Ball Corporation	$	570	$	551	$	402	$	(953)	$	570

	Condensed Consolidating Statement of Earnings
	For the Year Ended December 31, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Net sales	$	—	$	6,558	$	5,874	$	(797)	$	11,635
Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(5,551)		(4,575)		797		(9,329)
Depreciation and amortization		(6)		(202)		(494)		—		(702)
Selling, general and administrative		(303)		15		(190)		—		(478)
Business consolidation and other activities		(108)		(29)		(54)		—		(191)
Equity in results of subsidiaries		758		82		—		(840)		—
Intercompany		287		(194)		(93)		—		—
		628		(5,879)		(5,406)		(43)		(10,700)
Earnings (loss) before interest and taxes		628		679		468		(840)		935
Interest expense		(311)		12		(2)		—		(301)
Debt refinancing and other costs		(1)		—		—		—		(1)
Total interest expense		(312)		12		(2)		—		(302)
Earnings (loss) before taxes		316		691		466		(840)		633
Tax (provision) benefit		138		(203)		(120)		—		(185)
Equity in results of affiliates, net of tax		—		(10)		15		—		5
Net earnings		454		478		361		(840)		453
Less net earnings attributable to noncontrolling interests		—		—		1		—		1
Net earnings attributable to Ball Corporation	$	454	$	478	$	362	$	(840)	$	454
Comprehensive earnings (loss) attributable to Ball Corporation	$	275	$	467	$	182	$	(649)	$	275

	Condensed Consolidating Statement of Earnings
	For the Year Ended December 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Net sales	$	—	$	5,674	$	5,532	$	(223)	$	10,983
Cost and expenses
Cost of sales (excluding depreciation and amortization)		—		(4,722)		(4,218)		223		(8,717)
Depreciation and amortization		(8)		(209)		(512)		—		(729)
Selling, general and administrative		(168)		(151)		(195)		—		(514)
Business consolidation and other activities		(120)		(56)		(45)		—		(221)
Equity in results of subsidiaries		673		141		(40)		(774)		—
Intercompany		301		(150)		(151)		—		—
		678		(5,147)		(5,161)		(551)		(10,181)
Earnings (loss) before interest and taxes		678		527		371		(774)		802
Interest expense		(275)		6		(16)		—		(285)
Debt refinancing and other costs		—		—		(3)		—		(3)
Total interest expense		(275)		6		(19)		—		(288)
Earnings (loss) before taxes		403		533		352		(774)		514
Tax (provision) benefit		(29)		(79)		(57)		—		(165)
Equity in results of affiliates, net of tax		—		14		17		—		31
Net earnings		374		468		312		(774)		380
Less net earnings attributable to noncontrolling interests		—		—		(6)		—		(6)
Net earnings attributable to Ball Corporation	$	374	$	468	$	306	$	(774)	$	374
Comprehensive earnings (loss) attributable to Ball Corporation	$	659	$	731	$	578	$	(1,309)	$	659

	Condensed Consolidating Balance Sheet
	December 31, 2019
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Eliminating Adjustments		Consolidated Total
Assets
Current assets
Cash and cash equivalents	$	877	$	—	$	921	$	—	$	1,798
Receivables, net		31		494		1,106		—		1,631
Intercompany receivables		121		360		1,546		(2,027)		—
Inventories, net		—		550		724		—		1,274
Other current assets		24		35		122		—		181
Total current assets		1,053		1,439		4,419		(2,027)		4,884
Noncurrent assets
Property, plant and equipment, net		37		1,474		2,959		—		4,470
Investment in subsidiaries		7,289		2,489		(99)		(9,679)		—
Goodwill		—		1,190		3,229		—		4,419
Intangible assets, net		18		376		1,608		—		2,002
Other assets		331		304		950		—		1,585
Total assets	$	8,728	$	7,272	$	13,066	$	(11,706)	$	17,360
Liabilities and Equity
Current liabilities
Short-term debt and current portion of long-term debt	$	1,449	$	—	$	31	$	—	$	1,480
Accounts payable		16		1,111		2,009		—		3,136
Intercompany payables		2,473		94		338		(2,905)		—
Accrued employee costs		46		149		90		—		285
Other current liabilities		177		184		315		—		676
Total current liabilities		4,161		1,538		2,783		(2,905)		5,577
Noncurrent liabilities
Long-term debt		6,330		—		7		—		6,337
Employee benefit obligations		824		368		294		—		1,486
Intercompany long-term notes		(5,385)		(2,175)		6,681		879		—
Deferred taxes		(231)		235		557		—		561
Long-term deferred tax and other liabilities		80		120		180		—		380
Total liabilities		5,779		86		10,502		(2,026)		14,341
Common stock		1,178		2,661		46		(2,707)		1,178
Preferred stock		—		—		5		(5)		—
Retained earnings		5,803		5,135		2,857		(7,992)		5,803
Accumulated other comprehensive earnings (loss)		(910)		(610)		(414)		1,024		(910)
Treasury stock, at cost		(3,122)		—		—		—		(3,122)
Total Ball Corporation equity		2,949		7,186		2,494		(9,680)		2,949
Noncontrolling interests		—		—		70		—		70
Total equity		2,949		7,186		2,564		(9,680)		3,019
Total liabilities and equity	$	8,728	$	7,272	$	13,066	$	(11,706)	$	17,360

	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		35		79		—		146
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 Year Ended December 31, 2019
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Consolidated Total
Cash provided by (used in) operating activities	$	(353)	$	752	$	1,149	$	1,548
Cash flows from investing activities
Capital expenditures		(17)		(245)		(336)		(598)
Proceeds from dispositions, net of cash sold		—		—		160		160
Other, net		(5)		6		15		16
Cash provided by (used in) investing activities		(22)		(239)		(161)		(422)
Cash flows from financing activities
Long-term borrowings		2,813		—		6		2,819
Repayments of long-term borrowings		(1,516)		—		(8)		(1,524)
Net change in short-term borrowings		(174)		—		(9)		(183)
Proceeds from issuances of common stock, net of shares used for taxes		19		—		—		19
Acquisitions of treasury stock		(964)		—		—		(964)
Common stock dividends		(182)		—		—		(182)
Intercompany		1,283		(513)		(770)		—
Other, net		(31)		—		—		(31)
Cash provided by (used in) financing activities		1,248		(513)		(781)		(46)
Effect of exchange rate changes on cash		—		—		(2)		(2)
Change in cash, cash equivalents and restricted cash		873		—		205		1,078
Cash, cash equivalents and restricted cash – beginning of period		4		—		724		728
Cash, cash equivalents and restricted cash – end of period	$	877	$	—	$	929	$	1,806

	Condensed Consolidating Statement of Cash Flows
	For the Year Ended December 31, 2018
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Consolidated Total
Cash provided by (used in) operating activities	$	6	$	237	$	1,323	$	1,566
Cash flows from investing activities
Capital expenditures		(10)		(431)		(375)		(816)
Proceeds from dispositions, net of cash sold		(65)		604		—		539
Other, net		(4)		47		28		71
Cash provided by (used in) investing activities		(79)		220		(347)		(206)
Cash flows from financing activities
Long-term borrowings		1,475		—		—		1,475
Repayments of long-term borrowings		(1,525)		—		(8)		(1,533)
Net change in short-term borrowings		(73)		—		(47)		(120)
Proceeds from issuances of common stock, net of shares used for taxes		28		—		—		28
Acquisitions of treasury stock		(739)		—		—		(739)
Common stock dividends		(137)		—		—		(137)
Intercompany		1,054		(456)		(598)		—
Other, net		(11)		(1)		(2)		(14)
Cash provided by (used in) financing activities		72		(457)		(655)		(1,040)
Effect of exchange rate changes on cash		—		—		(51)		(51)
Change in cash, cash equivalents and restricted cash		(1)		—		270		269
Cash, cash equivalents and restricted cash – beginning of period		5		—		454		459
Cash, cash equivalents and restricted cash – end of period	$	4	$	—	$	724	$	728

	Condensed Consolidating Statement of Cash Flows
	For the Year Ended December 31, 2017
($ in millions)	Ball Corporation		Guarantor Subsidiaries		Non-Guarantor    Subsidiaries		Consolidated Total
Cash provided by (used in) operating activities	$	234	$	742	$	502	$	1,478
Cash flows from investing activities
Capital expenditures		(6)		(301)		(249)		(556)
Proceeds from dispositions, net of cash sold		17		31		(50)		(2)
Other, net		(2)		31		(16)		13
Cash provided by (used in) investing activities		9		(239)		(315)		(545)
Cash flows from financing activities
Long-term borrowings		765		—		—		765
Repayments of long-term borrowings		(741)		—		(1,069)		(1,810)
Net change in short-term borrowings		174		1		9		184
Proceeds from issuances of common stock, net of shares used for taxes		27		—		—		27
Acquisitions of treasury stock		(103)		—		—		(103)
Common stock dividends		(129)		—		—		(129)
Intercompany		(226)		(491)		717		—
Other, net		—		(3)		(4)		(7)
Cash provided by (used in) financing activities		(233)		(493)		(347)		(1,073)
Effect of exchange rate changes on cash		(6)		1		(3)		(8)
Change in cash, cash equivalents and restricted cash		4		11		(163)		(148)
Cash, cash equivalents and restricted cash – beginning of period		1		(11)		617		607
Cash, cash equivalents and restricted cash – end of period	$	5	$	—	$	454	$	459