Condensed Combining Financial Information | 6 Months Ended |
Jun. 30, 2014 |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' |
Condensed Combining Financial Information | ' |
Condensed Combining Financial Information |
Crown European Holdings SA (Issuer), a wholly owned subsidiary of the Company, has €500 ($685 at June 30, 2014) principal amount of 7.125% senior notes due 2018 outstanding that are fully and unconditionally guaranteed by Crown Holdings, Inc. (Parent) and certain subsidiaries. The guarantors are wholly owned by the Company and the guarantees are made on a joint and several basis. The guarantor column includes financial information for all subsidiaries in the United States (except for an insurance subsidiary and a receivable securitization subsidiary), substantially all subsidiaries in Belgium, Canada, France, Germany, Mexico, Switzerland and the United Kingdom, and a subsidiary in the Netherlands. |
The following condensed combining financial statements: |
•statements of comprehensive income for the three and six months ended June 30, 2014 and 2013, |
•balance sheets as of June 30, 2014 and December 31, 2013, and |
•statements of cash flows for the six months ended June 30, 2014 and 2013 |
are presented on the following pages to comply with the Company’s requirements under Rule 3-10 of Regulation S-X. |
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the three months ended June 30, 2014 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net sales | | | | | $ | 1,108 | | | $ | 1,275 | | | | | $ | 2,383 | |
|
Cost of products sold, excluding depreciation and amortization | | | | | 915 | | | 1,045 | | | | | 1,960 | |
|
Depreciation and amortization | | | | | 14 | | | 33 | | | | | 47 | |
|
Gross profit | | | | | 179 | | | 197 | | | | | 376 | |
|
Selling and administrative expense | | | | | | 77 | | | 26 | | | | | 103 | |
|
Restructuring and other | | | $ | 1 | | | 28 | | | 2 | | | | | 31 | |
|
Net interest expense | | | 8 | | | 38 | | | 19 | | | | | 65 | |
|
Technology royalty | | | | | (9 | ) | | 9 | | | | | — | |
|
Income/(loss) before income taxes | | | (9 | ) | | 45 | | | 141 | | | | | 177 | |
|
Provision for / (benefit from) income taxes | | | | | 27 | | | 23 | | | | | 50 | |
|
Equity earnings / (loss) in affiliates | $ | 106 | | | 73 | | | 88 | | | | | $ | (267 | ) | | — | |
|
Net income | 106 | | | 64 | | | 106 | | | 118 | | | (267 | ) | | 127 | |
|
Net income attributable to noncontrolling interests | | | | | | | (21 | ) | | | | (21 | ) |
|
Net income attributable to Crown Holdings | $ | 106 | | | $ | 64 | | | $ | 106 | | | $ | 97 | | | $ | (267 | ) | | $ | 106 | |
|
| | | | | | | | | | | |
Comprehensive income | $ | 130 | | | $ | 72 | | | $ | 130 | | | $ | 127 | | | $ | (305 | ) | | $ | 154 | |
|
Comprehensive income attributable to noncontrolling interests | | | | | | | | | | (24 | ) | | | | | (24 | ) |
|
Comprehensive income attributable to Crown Holdings | $ | 130 | | | $ | 72 | | | $ | 130 | | | $ | 103 | | | $ | (305 | ) | | $ | 130 | |
|
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the three months ended June 30, 2013 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net sales | | | | | $ | 1,120 | | | $ | 1,103 | | | | | $ | 2,223 | |
|
Cost of products sold, excluding depreciation and amortization | | | | | | 877 | | | 941 | | | | | 1,818 | |
|
Depreciation and amortization | | | | | 10 | | | 20 | | | | | 30 | |
|
Gross profit | | | — | | | 233 | | | 142 | | | | | 375 | |
|
Selling and administrative expense | | | $ | (2 | ) | | 80 | | | 24 | | | | | 102 | |
|
Restructuring and other | | | | | 4 | | | | | | | 4 | |
|
Net interest expense | | | 14 | | | 32 | | | 14 | | | | | 60 | |
|
Technology royalty | | | | | (10 | ) | | 10 | | | | | — | |
|
Foreign exchange | | | | | 1 | | | (1 | ) | | | | — | |
|
Income/(loss) before income taxes | | | (12 | ) | | 126 | | | 95 | | | — | | | 209 | |
|
Provision for / (benefit from) income taxes | | | | | 24 | | | 31 | | | | | 55 | |
|
Equity earnings / (loss) in affiliates | $ | 133 | | | 39 | | | 31 | | | | | $ | (202 | ) | | 1 | |
|
Net income | 133 | | | 27 | | | 133 | | | 64 | | | (202 | ) | | 155 | |
|
Net income attributable to noncontrolling interests | | | | | | | (22 | ) | | | | (22 | ) |
|
Net income attributable to Crown Holdings | $ | 133 | | | $ | 27 | | | $ | 133 | | | $ | 42 | | | $ | (202 | ) | | $ | 133 | |
|
| | | | | | | | | | | |
Comprehensive income | $ | 148 | | | $ | 28 | | | $ | 148 | | | $ | 58 | | | $ | (213 | ) | | $ | 169 | |
|
Comprehensive income attributable to noncontrolling interests | | | | | | | | | | (21 | ) | | | | | (21 | ) |
|
Comprehensive income attributable to Crown Holdings | $ | 148 | | | $ | 28 | | | $ | 148 | | | $ | 37 | | | $ | (213 | ) | | $ | 148 | |
|
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the six months ended June 30, 2014 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net sales | | | | | $ | 2,088 | | | $ | 2,288 | | | | | $ | 4,376 | |
|
Cost of products sold, excluding depreciation and amortization | | | | | 1,724 | | | 1,897 | | | | | 3,621 | |
|
Depreciation and amortization | | | | | 27 | | | 55 | | | | | 82 | |
|
Gross profit | | | | | 337 | | | 336 | | | | | 673 | |
|
Selling and administrative expense | | | $ | (1 | ) | | 162 | | | 46 | | | | | 207 | |
|
Restructuring and other | | | 1 | | | 56 | | | 26 | | | | | 83 | |
|
Net interest expense | | | 23 | | | 67 | | | 31 | | | | | 121 | |
|
Technology royalty | | | | | (17 | ) | | 17 | | | | | — | |
|
Foreign exchange | | | | | 3 | | | 3 | | | | | 6 | |
|
Income/(loss) before income taxes | | | (23 | ) | | 66 | | | 213 | | | | | 256 | |
|
Provision for / (benefit from) income taxes | | | | | 44 | | | 39 | | | | | 83 | |
|
Equity earnings / (loss) in affiliates | $ | 130 | | | 81 | | | 108 | | | | | $ | (319 | ) | | — | |
|
Net income | 130 | | | 58 | | | 130 | | | 174 | | | (319 | ) | | 173 | |
|
Net income attributable to noncontrolling interests | | | | | | | (43 | ) | | | | (43 | ) |
Net income attributable to Crown Holdings | $ | 130 | | | $ | 58 | | | $ | 130 | | | $ | 131 | | | $ | (319 | ) | | $ | 130 | |
|
| | | | | | | | | | | |
Comprehensive income | $ | 172 | | | $ | 62 | | | $ | 172 | | | $ | 181 | | | $ | (369 | ) | | $ | 218 | |
|
Comprehensive income attributable to | | | | | | | (46 | ) | | | | (46 | ) |
noncontrolling interests |
Comprehensive income attributable to Crown Holdings | $ | 172 | | | $ | 62 | | | $ | 172 | | | $ | 135 | | | $ | (369 | ) | | $ | 172 | |
|
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the six months ended June 30, 2013 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net sales | | | | | $ | 2,128 | | | $ | 2,068 | | | | | $ | 4,196 | |
|
Cost of products sold, excluding depreciation and amortization | | | | | 1,705 | | | 1,753 | | | | | 3,458 | |
|
Depreciation and amortization | | | | | 24 | | | 40 | | | | | 64 | |
|
Gross profit | | | | | 399 | | | 275 | | | | | 674 | |
|
Selling and administrative expense | | | $ | (2 | ) | | 161 | | | 47 | | | | | 206 | |
|
Restructuring and other | | | | | 6 | | | 2 | | | | | 8 | |
|
Loss from early extinguishment of debt | | | 1 | | | 37 | | | | | | | 38 | |
|
Net interest expense | | | 27 | | | 64 | | | 27 | | | | | 118 | |
|
Technology royalty | | | | | (18 | ) | | 18 | | | | | — | |
|
Foreign Exchange | | | | | 3 | | | (1 | ) | | | | 2 | |
|
Income/(loss) before income taxes | | | (26 | ) | | 146 | | | 182 | | | | | 302 | |
|
Provision for / (benefit from) income taxes | | | | | 40 | | | 39 | | | | | 79 | |
|
Equity earnings / (loss) in affiliates | $ | 174 | | | 61 | | | 68 | | | | | $ | (304 | ) | | (1 | ) |
|
Net income | 174 | | | 35 | | | 174 | | | 143 | | | (304 | ) | | 222 | |
|
Net income attributable to noncontrolling interests | | | | | | | (48 | ) | | | | (48 | ) |
Net income attributable to Crown Holdings | $ | 174 | | | $ | 35 | | | $ | 174 | | | $ | 95 | | | $ | (304 | ) | | $ | 174 | |
|
| | | | | | | | | | | |
Comprehensive income | $ | 172 | | | $ | 17 | | | $ | 172 | | | $ | 107 | | | $ | (252 | ) | | $ | 216 | |
|
Comprehensive income attributable to noncontrolling interests | | | | | | | (44 | ) | | | | (44 | ) |
Comprehensive income attributable to Crown Holdings | $ | 172 | | | $ | 17 | | | $ | 172 | | | $ | 63 | | | $ | (252 | ) | | $ | 172 | |
|
CONDENSED COMBINING BALANCE SHEET |
|
As of June 30, 2014 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Assets | | | | | | | | | | | |
Current assets | | | | | | | | | | | |
Cash and cash equivalents | | | | | $ | 83 | | | $ | 161 | | | | | $ | 244 | |
|
Receivables, net | | | | | | 321 | | | 943 | | | | | 1,264 | |
|
Intercompany receivables | | | $ | 3 | | | 122 | | | 76 | | | $ | (201 | ) | | — | |
|
Inventories | | | | | 662 | | | 953 | | | | | 1,615 | |
|
Prepaid expenses and other current assets | $ | 2 | | | 7 | | | 147 | | | 208 | | | | | 364 | |
|
Total current assets | 2 | | | 10 | | | 1,335 | | | 2,341 | | | (201 | ) | | 3,487 | |
|
| | | | | | | | | | | |
Intercompany debt receivables | | | 2,338 | | | 5,021 | | | 520 | | | (7,879 | ) | | — | |
|
Investments | 2,235 | | | 4,224 | | | 544 | | | | | (7,003 | ) | | — | |
|
Goodwill and intangible assets | | | | | 1,463 | | | 1,809 | | | | | 3,272 | |
|
Property, plant and equipment, net | | | | | 667 | | | 1,829 | | | | | 2,496 | |
|
Other non-current assets | | | 37 | | | 530 | | | 73 | | | | | 640 | |
|
Total | $ | 2,237 | | | $ | 6,609 | | | $ | 9,560 | | | $ | 6,572 | | | $ | (15,083 | ) | | $ | 9,895 | |
|
| | | | | | | | | | | |
Liabilities and equity | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | |
Short-term debt | | | | | | $ | 18 | | | $ | 154 | | | | | $ | 172 | |
|
Current maturities of long-term debt | | | | | | | | 90 | | | | | 90 | |
|
Accounts payable and accrued liabilities | $ | 10 | | | $ | 25 | | | 1,294 | | | 1,258 | | | | | 2,587 | |
|
Intercompany payables | | | | | 76 | | | 125 | | | $ | (201 | ) | | — | |
|
Total current liabilities | 10 | | | 25 | | | 1,388 | | | 1,627 | | | (201 | ) | | 2,849 | |
|
| | | | | | | | | | | |
Long-term debt, excluding current maturities | | | 1,693 | | | 3,320 | | | 217 | | | | | 5,230 | |
|
Long-term intercompany debt | 2,083 | | | 2,541 | | | 1,534 | | | 1,721 | | | (7,879 | ) | | — | |
|
Postretirement and pension liabilities | | | | | 819 | | | 17 | | | | | 836 | |
|
Other non-current liabilities | | | 8 | | | 264 | | | 296 | | | | | 568 | |
|
Commitments and contingent liabilities | | | | | | | | | | | |
|
Noncontrolling interests | | | | | | | | 268 | | | | | 268 | |
|
Crown Holdings shareholders’ equity/(deficit) | 144 | | | 2,342 | | | 2,235 | | | 2,426 | | | (7,003 | ) | | 144 | |
|
Total equity/(deficit) | 144 | | | 2,342 | | | 2,235 | | | 2,694 | | | (7,003 | ) | | 412 | |
|
Total | $ | 2,237 | | | $ | 6,609 | | | $ | 9,560 | | | $ | 6,572 | | | $ | (15,083 | ) | | $ | 9,895 | |
|
CONDENSED COMBINING BALANCE SHEET |
As of December 31, 2013 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Assets | | | | | | | | | | | |
Current assets | | | | | | | | | | | |
Cash and cash equivalents | | | $ | 48 | | | $ | 392 | | | $ | 249 | | | | | $ | 689 | |
|
Receivables, net | | | 1 | | | 246 | | | 817 | | | | | 1,064 | |
|
Intercompany receivables | | | 2 | | | 89 | | | 63 | | | $ | (154 | ) | | — | |
|
Inventories | | | | | 565 | | | 648 | | | | | 1,213 | |
|
Prepaid expenses and other current assets | $ | 1 | | | 10 | | | 146 | | | 57 | | | | | 214 | |
|
Total current assets | 1 | | | 61 | | | 1,438 | | | 1,834 | | | (154 | ) | | 3,180 | |
|
| | | | | | | | | | | |
Intercompany debt receivables | | | 1,531 | | | 3,746 | | | 589 | | | (5,866 | ) | | — | |
|
Investments | 1,176 | | | 4,155 | | | (325 | ) | | | | (5,006 | ) | | — | |
|
Goodwill and intangible assets | | | | | 1,444 | | | 572 | | | | | 2,016 | |
|
Property, plant and equipment, net | | | | | 643 | | | 1,509 | | | | | 2,152 | |
|
Other non-current assets | | | 29 | | | 562 | | | 91 | | | | | 682 | |
|
Total | $ | 1,177 | | | $ | 5,776 | | | $ | 7,508 | | | $ | 4,595 | | | $ | (11,026 | ) | | $ | 8,030 | |
|
| | | | | | | | | | | |
Liabilities and equity | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | |
Short-term debt | | | | | | $ | 2 | | | $ | 277 | | | | | $ | 279 | |
|
Current maturities of long-term debt | | | | | | | | | 94 | | | | | 94 | |
|
Accounts payable and accrued liabilities | $ | 16 | | | $ | 22 | | | 1,277 | | | 1,232 | | | | | 2,547 | |
|
Intercompany payables | | | 8 | | | 55 | | | 91 | | | $ | (154 | ) | | — | |
|
Total current liabilities | 16 | | | 30 | | | 1,334 | | | 1,694 | | | (154 | ) | | 2,920 | |
|
| | | | | | | | | | | |
Long-term debt, excluding current maturities | | | 942 | | | 2,332 | | | 195 | | | | | 3,469 | |
|
Long-term intercompany debt | 1,157 | | | 2,510 | | | 1,515 | | | 684 | | | (5,866 | ) | | — | |
|
Postretirement and pension liabilities | | | | | 870 | | | 21 | | | | | 891 | |
|
Other non-current liabilities | | | 8 | | | 281 | | | 172 | | | | | 461 | |
|
Commitments and contingent liabilities | | | | | | | | | | | |
|
Noncontrolling interests | | | | | | | | 285 | | | | | 285 | |
|
Crown Holdings shareholders’ equity/(deficit) | 4 | | | 2,286 | | | 1,176 | | | 1,544 | | | (5,006 | ) | | 4 | |
|
Total equity/(deficit) | 4 | | | 2,286 | | | 1,176 | | | 1,829 | | | (5,006 | ) | | 289 | |
|
Total | $ | 1,177 | | | $ | 5,776 | | | $ | 7,508 | | | $ | 4,595 | | | $ | (11,026 | ) | | $ | 8,030 | |
|
CONDENSED COMBINING STATEMENT OF CASH FLOWS |
For the six months ended June 30, 2014 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net cash provided by/(used for) operating activities | $ | 7 | | | $ | (30 | ) | | $ | (160 | ) | | $ | 66 | | | | | $ | (117 | ) |
|
Cash flows from investing activities | | | | | | | | | | | |
Capital expenditures | | | | | (43 | ) | | (106 | ) | | | | (149 | ) |
|
Purchase of business | | | | | | (733 | ) | | | | | | | | (733 | ) |
|
Proceeds from sale of property, plant and equipment | | | | | 4 | | | 1 | | | | | 5 | |
|
Proceeds from sale of business | | | 22 | | | | | | | | | | | | 22 | |
|
Intercompany investing activities | (941 | ) | | | | | 1,007 | | | | | $ | (66 | ) | | — | |
|
Other | | | | | | | | 1 | | | | | 1 | |
|
Net cash provided by/(used for) investing activities | (941 | ) | | 22 | | | 235 | | | (104 | ) | | (66 | ) | | (854 | ) |
|
Cash flows from financing activities | | | | | | | | | | | |
Proceeds from long-term debt | | | 815 | | | 942 | | | 70 | | | | | 1,827 | |
|
Payments of long-term debt | | | | | | | | | (1,015 | ) | | | | (1,015 | ) |
|
Net change in revolving credit facility and short-term debt | | | (54 | ) | | 47 | | | (123 | ) | | | | (130 | ) |
|
Net change in long-term intercompany balances | 926 | | | (787 | ) | | (1,259 | ) | | 1,120 | | | | | — | |
|
Debt issue costs | | | (12 | ) | | (21 | ) | | | | | | (33 | ) |
|
Common stock issued | 10 | | | | | | | | | | | 10 | |
|
Common stock repurchased | (2 | ) | | | | | | | | | | (2 | ) |
|
Dividends paid | | | | | | | (66 | ) | | 66 | | | — | |
|
Purchase of noncontrolling interests | | | | | (93 | ) | | | | | | | (93 | ) |
|
Dividends paid to noncontrolling interests | | | | | | | (34 | ) | | | | (34 | ) |
|
Other | | | (2 | ) | | | | | | | | | (2 | ) |
|
Net cash provided by/(used for) financing activities | 934 | | | (40 | ) | | (384 | ) | | (48 | ) | | 66 | | | 528 | |
|
Effect of exchange rate changes on cash and cash equivalents | | | | | | | (2 | ) | | | | (2 | ) |
|
Net change in cash and cash equivalents | — | | | (48 | ) | | (309 | ) | | (88 | ) | | — | | | (445 | ) |
|
Cash and cash equivalents at January 1 | | | 48 | | | 392 | | | 249 | | | | | 689 | |
|
Cash and cash equivalents at June 30 | $ | — | | | $ | — | | | $ | 83 | | | $ | 161 | | | $ | — | | | $ | 244 | |
|
CONDENSED COMBINING STATEMENT OF CASH FLOWS |
For the six months ended June 30, 2013 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net cash provided by/(used for) operating activities | $ | 2 | | | $ | (21 | ) | | $ | (199 | ) | | $ | (33 | ) | | | | $ | (251 | ) |
|
Cash flows from investing activities | | | | | | | | | | | |
Capital expenditures | | | | | (29 | ) | | (95 | ) | | | | (124 | ) |
|
Insurance proceeds | | | | | | | 8 | | | | | 8 | |
|
Proceeds from sale of property, plant and equipment | | | | | 3 | | | 2 | | | | | 5 | |
|
Intercompany investing activities | | | (39 | ) | | 50 | | | | | | $ | (11 | ) | | — | |
|
Other | | | | | — | | | (5 | ) | | | | (5 | ) |
|
Net cash provided by/(used for) investing activities | | | (39 | ) | | 24 | | | (90 | ) | | (11 | ) | | (116 | ) |
|
Cash flows from financing activities | | | | | | | | | | | |
Proceeds from long-term debt | | | | | | 1,000 | | | 40 | | | | | 1,040 | |
|
Payments of long-term debt | | | (217 | ) | | (729 | ) | | (38 | ) | | | | (984 | ) |
|
Net change in revolving credit facility and short-term debt | | | 267 | | | 140 | | | 16 | | | | | 423 | |
|
Net change in long-term intercompany balances | 179 | | | 11 | | | (253 | ) | | 63 | | | | | — | |
|
Debt issue costs | | | | | | (15 | ) | | | | | | (15 | ) |
|
Capital contribution | | | | | | | 39 | | | (39 | ) | | — | |
|
Common stock issued | 13 | | | | | | | | | | | 13 | |
|
Common stock repurchased | (194 | ) | | | | | | | | | | (194 | ) |
|
Dividends paid | | | | | | | | (50 | ) | | 50 | | | — | |
|
Purchase of noncontrolling interests | | | | | | | (10 | ) | | | | (10 | ) |
|
Dividends paid to noncontrolling interests | | | | | | | (35 | ) | | | | (35 | ) |
|
Other | | | (1 | ) | | 12 | | | | | | | 11 | |
|
Net cash provided by/(used for) financing activities | (2 | ) | | 60 | | | 155 | | | 25 | | | 11 | | | 249 | |
|
Effect of exchange rate changes on cash and cash equivalents | | | | | | | (5 | ) | | | | (5 | ) |
|
Net change in cash and cash equivalents | — | | | — | | | (20 | ) | | (103 | ) | | — | | | (123 | ) |
|
Cash and cash equivalents at January 1 | | | | | | 134 | | | 216 | | | | | 350 | |
|
Cash and cash equivalents at June 30 | $ | — | | | $ | — | | | $ | 114 | | | $ | 113 | | | $ | — | | | $ | 227 | |
|
Crown Cork & Seal Company, Inc. (Issuer), a wholly owned subsidiary, has $350 principal amount of 7.375% senior notes due 2026 and $64 principal amount of 7.5% senior notes due 2096 outstanding that are fully and unconditionally guaranteed by Crown Holdings, Inc. (Parent). No other subsidiary guarantees the debt. |
|
The following condensed combining financial statements: |
•statements of comprehensive income for the three and six months ended June 30, 2014 and 2013, |
•balance sheets as of June 30, 2014 and December 31, 2013, and |
•statements of cash flows for the six months ended June 30, 2014 and 2013 |
are presented on the following pages to comply with the Company’s requirements under Rule 3-10 of Regulation S-X. |
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the three months ended June 30, 2014 |
(in millions) |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Non- | | Eliminations | | Total | | | | |
Guarantors | Company | | | | |
Net sales | | | | | $ | 2,383 | | | | | $ | 2,383 | | | | | |
| | | |
Cost of products sold, excluding depreciation and amortization | | | | | 1,960 | | | | | 1,960 | | | | | |
| | | |
Depreciation and amortization | | | | | 47 | | | | | 47 | | | | | |
| | | |
Gross profit | | | — | | | 376 | | | | | 376 | | | | | |
| | | |
Selling and administrative expense | | | $ | 2 | | | 101 | | | | | 103 | | | | | |
| | | |
Restructuring and other | | | | | | 31 | | | | | 31 | | | | | |
| | | |
Net interest expense | | | 24 | | | 41 | | | | | 65 | | | | | |
| | | |
Income/(loss) before income taxes | | | (26 | ) | | 203 | | | — | | | 177 | | | | | |
| | | |
Provision for / (benefit from) income taxes | | | (4 | ) | | 54 | | | | | 50 | | | | | |
| | | |
Equity earnings / (loss) in affiliates | $ | 106 | | | 132 | | | | | | $ | (238 | ) | | — | | | | | |
| | | |
Net income | 106 | | | 110 | | | 149 | | | (238 | ) | | 127 | | | | | |
| | | |
Net income attributable to noncontrolling interests | | | | | (21 | ) | | | | (21 | ) | | | | |
| | | |
Net income attributable to Crown Holdings | $ | 106 | | | $ | 110 | | | $ | 128 | | | $ | (238 | ) | | $ | 106 | | | | | |
| | | |
| | | | | | | | | | | | | |
Comprehensive income | $ | 130 | | | $ | 134 | | | $ | 176 | | | $ | (286 | ) | | $ | 154 | | | | | |
| | | |
Comprehensive income attributable to noncontrolling interests | | | | | | | (24 | ) | | | | | (24 | ) | | | | |
| | | |
Comprehensive income attributable to Crown Holdings | $ | 130 | | | $ | 134 | | | $ | 152 | | | $ | (286 | ) | | $ | 130 | | | | | |
| | | |
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the three months ended June 30, 2013 |
(in millions) |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Non- | | Eliminations | | Total | | | | |
Guarantors | Company | | | | |
Net sales | | | | | $ | 2,223 | | | | | $ | 2,223 | | | | | |
| | | |
Cost of products sold, excluding depreciation and amortization | | | $ | (16 | ) | | 1,834 | | | | | 1,818 | | | | | |
| | | |
Depreciation and amortization | | | | | 30 | | | | | 30 | | | | | |
| | | |
Gross profit | | | 16 | | | 359 | | | | | 375 | | | | | |
| | | |
Selling and administrative expense | | | (2 | ) | | 104 | | | | | 102 | | | | | |
| | | |
Restructuring and other | | | | | 4 | | | | | 4 | | | | | |
| | | |
Net interest expense | | | 25 | | | 35 | | | | | 60 | | | | | |
| | | |
Income/(loss) before income taxes | | | (7 | ) | | 216 | | | | | 209 | | | | | |
| | | |
Provision for / (benefit from) income taxes | | | (3 | ) | | 58 | | | | | 55 | | | | | |
| | | |
Equity earnings / (loss) in affiliates | $ | 133 | | | 137 | | | | | $ | (269 | ) | | 1 | | | | | |
| | | |
Net income | 133 | | | 133 | | | 158 | | | (269 | ) | | 155 | | | | | |
| | | |
Net income attributable to noncontrolling interests | | | | | (22 | ) | | | | (22 | ) | | | | |
| | | |
Net income attributable to Crown Holdings | $ | 133 | | | $ | 133 | | | $ | 136 | | | $ | (269 | ) | | $ | 133 | | | | | |
| | | |
| | | | | | | | | | | | | |
Comprehensive income | $ | 148 | | | $ | 148 | | | $ | 172 | | | $ | (299 | ) | | $ | 169 | | | | | |
| | | |
Comprehensive income attributable to noncontrolling interests | | | | | | | (21 | ) | | | | | (21 | ) | | | | |
| | | |
Comprehensive income attributable to Crown Holdings | $ | 148 | | | $ | 148 | | | $ | 151 | | | $ | (299 | ) | | $ | 148 | | | | | |
| | | |
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the six months ended June 30, 2014 |
(in millions) |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Non- | | Eliminations | | Total | | | | |
Guarantors | Company | | | | |
Net sales | | | | | $ | 4,376 | | | | | $ | 4,376 | | | | | |
| | | |
Cost of products sold, excluding depreciation and amortization | | | | | 3,621 | | | | | 3,621 | | | | | |
| | | |
Depreciation and amortization | | | | | 82 | | | | | 82 | | | | | |
| | | |
Gross profit | | | — | | | 673 | | | | | 673 | | | | | |
| | | |
Selling and administrative expense | | | $ | 5 | | | 202 | | | | | 207 | | | | | |
| | | |
Restructuring and other | | | 14 | | | 69 | | | | | 83 | | | | | |
| | | |
Net interest expense | | | 47 | | | 74 | | | | | 121 | | | | | |
| | | |
Foreign exchange | | | | | 6 | | | | | 6 | | | | | |
| | | |
Income/(loss) before income taxes | | | (66 | ) | | 322 | | | | | 256 | | | | | |
| | | |
Provision for / (benefit from) income taxes | | | (9 | ) | | 92 | | | | | 83 | | | | | |
| | | |
Equity earnings / (loss) in affiliates | $ | 130 | | | 191 | | | | | $ | (321 | ) | | — | | | | | |
| | | |
Net income | 130 | | | 134 | | | 230 | | | (321 | ) | | 173 | | | | | |
| | | |
Net income attributable to noncontrolling interests | | | | | (43 | ) | | | | (43 | ) | | | | |
Net income attributable to Crown Holdings | $ | 130 | | | $ | 134 | | | $ | 187 | | | $ | (321 | ) | | $ | 130 | | | | | |
| | | |
| | | | | | | | | | | | | |
Comprehensive income | $ | 172 | | | $ | 176 | | | $ | 275 | | | $ | (405 | ) | | $ | 218 | | | | | |
| | | |
Comprehensive income attributable to noncontrolling interests | | | | | (46 | ) | | | | (46 | ) | | | | |
Comprehensive income attributable to Crown Holdings | $ | 172 | | | $ | 176 | | | $ | 229 | | | $ | (405 | ) | | $ | 172 | | | | | |
| | | |
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the six months ended June 30, 2013 |
(in millions) |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Non- | | Eliminations | | Total | | | | |
Guarantors | Company | | | | |
Net sales | | | | | $ | 4,196 | | | | | $ | 4,196 | | | | | |
| | | |
Cost of products sold, excluding depreciation and amortization | | | $ | (16 | ) | | 3,474 | | | | | 3,458 | | | | | |
| | | |
Depreciation and amortization | | | | | 64 | | | | | 64 | | | | | |
| | | |
Gross profit | | | 16 | | | 658 | | | | | 674 | | | | | |
| | | |
Selling and administrative expense | | | 1 | | | 205 | | | | | 206 | | | | | |
| | | |
Restructuring and other | | | | | 8 | | | | | 8 | | | | | |
| | | |
Loss from early extinguishment of debt | | | | | 38 | | | | | 38 | | | | | |
| | | |
Net interest expense | | | 51 | | | 67 | | | | | 118 | | | | | |
| | | |
Foreign exchange | | | | | 2 | | | | | 2 | | | | | |
| | | |
Income/(loss) before income taxes | | | (36 | ) | | 338 | | | | | 302 | | | | | |
| | | |
Provision for / (benefit from) income taxes | | | (1 | ) | | 80 | | | | | 79 | | | | | |
| | | |
Equity earnings / (loss) in affiliates | $ | 174 | | | 209 | | | | | $ | (384 | ) | | (1 | ) | | | | |
| | | |
Net income | 174 | | | 174 | | | 258 | | | (384 | ) | | 222 | | | | | |
| | | |
Net income attributable to noncontrolling interests | | | | | (48 | ) | | | | (48 | ) | | | | |
Net income attributable to Crown Holdings | $ | 174 | | | $ | 174 | | | $ | 210 | | | $ | (384 | ) | | $ | 174 | | | | | |
| | | |
| | | | | | | | | | | | | |
Comprehensive Income | $ | 172 | | | $ | 172 | | | $ | 252 | | | $ | (380 | ) | | $ | 216 | | | | | |
| | | |
Comprehensive income attributable to noncontrolling interests | | | | | (44 | ) | | | | (44 | ) | | | | |
Comprehensive income attributable to Crown Holdings | $ | 172 | | | $ | 172 | | | $ | 208 | | | $ | (380 | ) | | $ | 172 | | | | | |
| | | |
CONDENSED COMBINING BALANCE SHEET |
As of June 30, 2014 |
(in millions) |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Non- | | Eliminations | | Total | | | | |
Guarantors | Company | | | | |
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | $ | 244 | | | | | $ | 244 | | | | | |
| | | |
Receivables, net | | | | | 1,264 | | | | | 1,264 | | | | | |
| | | |
Inventories | | | | | 1,615 | | | | | 1,615 | | | | | |
| | | |
Prepaid expenses and other current assets | $ | 2 | | | $ | 103 | | | 259 | | | | | 364 | | | | | |
| | | |
Total current assets | 2 | | | 103 | | | 3,382 | | | | | 3,487 | | | | | |
| | | |
| | | | | | | | | | | | | |
Intercompany debt receivables | | | | | 2,847 | | | $ | (2,847 | ) | | — | | | | | |
| | | |
Investments | 2,235 | | | 2,344 | | | | | (4,579 | ) | | — | | | | | |
| | | |
Goodwill and intangible assets | | | | | 3,272 | | | | | 3,272 | | | | | |
| | | |
Property, plant and equipment, net | | | | | 2,496 | | | | | 2,496 | | | | | |
| | | |
Other non-current assets | | | 335 | | | 305 | | | | | 640 | | | | | |
| | | |
Total | $ | 2,237 | | | $ | 2,782 | | | $ | 12,302 | | | $ | (7,426 | ) | | $ | 9,895 | | | | | |
| | | |
| | | | | | | | | | | | | |
Liabilities and equity | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Short-term debt | | | | | $ | 172 | | | | | $ | 172 | | | | | |
| | | |
Current maturities of long-term debt | | | | | 90 | | | | | 90 | | | | | |
| | | |
Accounts payable and accrued liabilities | $ | 10 | | | $ | 31 | | | 2,546 | | | | | 2,587 | | | | | |
| | | |
Total current liabilities | 10 | | | 31 | | | 2,808 | | | | | 2,849 | | | | | |
| | | |
| | | | | | | | | | | | | |
Long-term debt, excluding current maturities | | | 412 | | | 4,818 | | | | | 5,230 | | | | | |
| | | |
Long-term intercompany debt | 2,083 | | | 764 | | | | | $ | (2,847 | ) | | — | | | | | |
| | | |
Postretirement and pension liabilities | | | | | 836 | | | | | 836 | | | | | |
| | | |
Other non-current liabilities | | | 277 | | | 291 | | | | | 568 | | | | | |
| | | |
Commitments and contingent liabilities | | | | | | | | | | | | | |
| | | |
Noncontrolling interests | | | | | 268 | | | | | 268 | | | | | |
| | | |
Crown Holdings shareholders’ equity/(deficit) | 144 | | | 1,298 | | | 3,281 | | | (4,579 | ) | | 144 | | | | | |
| | | |
Total equity/(deficit) | 144 | | | 1,298 | | | 3,549 | | | (4,579 | ) | | 412 | | | | | |
| | | |
Total | $ | 2,237 | | | $ | 2,782 | | | $ | 12,302 | | | $ | (7,426 | ) | | $ | 9,895 | | | | | |
| | | |
CONDENSED COMBINING BALANCE SHEET |
As of December 31, 2013 |
(in millions) |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Non- | | Eliminations | | Total | | | | |
Guarantors | Company | | | | |
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | $ | 689 | | | | | $ | 689 | | | | | |
| | | |
Receivables, net | | | | | 1,064 | | | | | 1,064 | | | | | |
| | | |
Inventories | | | | | 1,213 | | | | | 1,213 | | | | | |
| | | |
Prepaid expenses and other current assets | $ | 1 | | | $ | 103 | | | 110 | | | | | 214 | | | | | |
| | | |
Total current assets | 1 | | | 103 | | | 3,076 | | | | | 3,180 | | | | | |
| | | |
| | | | | | | | | | | | | |
Intercompany debt receivables | | | | | 1,908 | | | $ | (1,908 | ) | | — | | | | | |
| | | |
Investments | 1,176 | | | 2,212 | | | | | (3,388 | ) | | — | | | | | |
| | | |
Goodwill and intangible assets | | | | | 2,016 | | | | | 2,016 | | | | | |
| | | |
Property, plant and equipment, net | | | | | 2,152 | | | | | 2,152 | | | | | |
| | | |
Other non-current assets | | | 349 | | | 333 | | | | | 682 | | | | | |
| | | |
Total | $ | 1,177 | | | $ | 2,664 | | | $ | 9,485 | | | $ | (5,296 | ) | | $ | 8,030 | | | | | |
| | | |
| | | | | | | | | | | | | |
Liabilities and equity | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Short-term debt | | | | | $ | 279 | | | | | $ | 279 | | | | | |
| | | |
Current maturities of long-term debt | | | | | 94 | | | | | 94 | | | | | |
| | | |
Accounts payable and accrued liabilities | $ | 16 | | | $ | 36 | | | 2,495 | | | | | 2,547 | | | | | |
| | | |
Total current liabilities | 16 | | | 36 | | | 2,868 | | | | | 2,920 | | | | | |
| | | |
| | | | | | | | | | | | | |
Long-term debt, excluding current maturities | | | 412 | | | 3,057 | | | | | 3,469 | | | | | |
| | | |
Long-term intercompany debt | 1,157 | | | 751 | | | | | $ | (1,908 | ) | | — | | | | | |
| | | |
Postretirement and pension liabilities | | | | | 891 | | | | | 891 | | | | | |
| | | |
Other non-current liabilities | | | 289 | | | 172 | | | | | 461 | | | | | |
| | | |
Commitments and contingent liabilities | | | | | | | | | | | | | |
| | | |
Noncontrolling interests | | | | | 285 | | | | | 285 | | | | | |
| | | |
Crown Holdings shareholders’ equity/(deficit) | 4 | | | 1,176 | | | 2,212 | | | (3,388 | ) | | 4 | | | | | |
| | | |
Total equity/(deficit) | 4 | | | 1,176 | | | 2,497 | | | (3,388 | ) | | 289 | | | | | |
| | | |
Total | $ | 1,177 | | | $ | 2,664 | | | $ | 9,485 | | | $ | (5,296 | ) | | $ | 8,030 | | | | | |
| | | |
CONDENSED COMBINING STATEMENT OF CASH FLOWS |
For the six months ended June 30, 2014 |
(in millions) |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Non- | | Eliminations | | Total | | | | |
Guarantors | Company | | | | |
Net cash provided by/(used for) operating activities | $ | 7 | | | $ | (60 | ) | | $ | (64 | ) | | | | $ | (117 | ) | | | | |
| | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Capital expenditures | | | | | (149 | ) | | | | (149 | ) | | | | |
| | | |
Purchase of business | | | | | (733 | ) | | | | (733 | ) | | | | |
| | | |
Proceeds from sale of property, plant and equipment | | | | | 5 | | | | | 5 | | | | | |
| | | |
Proceeds from sale of business | | | | | 22 | | | | | 22 | | | | | |
| | | |
Intercompany investing activities | (941 | ) | | 47 | | | 941 | | | $ | (47 | ) | | — | | | | | |
| | | |
Other | | | | | 1 | | | | | 1 | | | | | |
| | | |
Net cash provided by/(used for) investing activities | (941 | ) | | 47 | | | 87 | | | (47 | ) | | (854 | ) | | | | |
| | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from long-term debt | | | | | 1,827 | | | | | 1,827 | | | | | |
| | | |
Payments of long-term debt | | | | | (1,015 | ) | | | | (1,015 | ) | | | | |
| | | |
Net change in revolving credit facility and short-term debt | | | | | (130 | ) | | | | (130 | ) | | | | |
| | | |
Net change in long-term intercompany balances | 926 | | | 13 | | | (939 | ) | | | | — | | | | | |
| | | |
Debt issue costs | | | | | (33 | ) | | | | (33 | ) | | | | |
| | | |
Common stock issued | 10 | | | | | | | | | 10 | | | | | |
| | | |
Common stock repurchased | (2 | ) | | | | | | | | (2 | ) | | | | |
| | | |
Dividends paid | | | | | (47 | ) | | 47 | | | — | | | | | |
| | | |
Purchase of noncontrollling interests | | | | | | (93 | ) | | | | (93 | ) | | | | |
| | | |
Dividend paid to noncontrolling interests | | | | | (34 | ) | | | | (34 | ) | | | | |
| | | |
Other | | | | | (2 | ) | | | | (2 | ) | | | | |
| | | |
Net cash provided by/(used for) financing activities | 934 | | | 13 | | | (466 | ) | | 47 | | | 528 | | | | | |
| | | |
Effect of exchange rate changes on cash and cash equivalents | | | | | (2 | ) | | | | (2 | ) | | | | |
| | | |
Net change in cash and cash equivalents | — | | | — | | | (445 | ) | | — | | | (445 | ) | | | | |
| | | |
Cash and cash equivalents at January 1 | | | | | 689 | | | | | 689 | | | | | |
| | | |
Cash and cash equivalents at June 30 | $ | — | | | $ | — | | | $ | 244 | | | $ | — | | | $ | 244 | | | | | |
| | | |
ONDENSED COMBINING STATEMENT OF CASH FLOWS |
For the six months ended June 30, 2013 |
(in millions) |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Non- | | Eliminations | | Total | | | | |
Guarantors | Company | | | | |
Net cash provided by/(used for) operating activities | $ | 2 | | | $ | (63 | ) | | $ | (190 | ) | | | | $ | (251 | ) | | | | |
| | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Capital expenditures | | | | | (124 | ) | | | | (124 | ) | | | | |
| | | |
Insurance proceeds | | | | | 8 | | | | | 8 | | | | | |
| | | |
Proceeds from sale of property, plant and equipment | | | | | 5 | | | | | 5 | | | | | |
| | | |
Intercompany investing activities | | | 47 | | | | | | $ | (47 | ) | | — | | | | | |
| | | |
Other | | | | | (5 | ) | | | | (5 | ) | | | | |
| | | |
Net cash provided by/(used for) investing activities | | | 47 | | | (116 | ) | | (47 | ) | | (116 | ) | | | | |
| | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from long-term debt | | | | | 1,040 | | | | | 1,040 | | | | | |
| | | |
Payments of long-term debt | | | | | (984 | ) | | | | (984 | ) | | | | |
| | | |
Net change in revolving credit facility and short-term debt | | | | | 423 | | | | | 423 | | | | | |
| | | |
Net change in long-term intercompany balances | 179 | | | 16 | | | (195 | ) | | | | — | | | | | |
| | | |
Debt issue costs | | | | | (15 | ) | | | | (15 | ) | | | | |
| | | |
Common stock issued | 13 | | | | | | | | | 13 | | | | | |
| | | |
Common stock repurchased | (194 | ) | | | | | | | | (194 | ) | | | | |
| | | |
Dividends paid | | | | | (47 | ) | | 47 | | | — | | | | | |
| | | |
Purchase of noncontrolling interests | | | | | (10 | ) | | | | (10 | ) | | | | |
| | | |
Dividend paid to noncontrolling interests | | | | | (35 | ) | | | | (35 | ) | | | | |
| | | |
Other | | | | | 11 | | | | | 11 | | | | | |
| | | |
Net cash provided by/(used for) financing activities | (2 | ) | | 16 | | | 188 | | | 47 | | | 249 | | | | | |
| | | |
Effect of exchange rate changes on cash and cash equivalents | | | | | (5 | ) | | | | (5 | ) | | | | |
| | | |
Net change in cash and cash equivalents | — | | | — | | | (123 | ) | | — | | | (123 | ) | | | | |
| | | |
Cash and cash equivalents at January 1 | | | | | 350 | | | | | 350 | | | | | |
| | | |
Cash and cash equivalents at June 30 | $ | — | | | $ | — | | | $ | 227 | | | $ | — | | | $ | 227 | | | | | |
| | | |
Crown Americas, LLC, Crown Americas Capital Corp. II and Crown Americas Capital Corp. III (collectively, the Issuers), wholly owned subsidiaries of the Company, have outstanding $700 principal amount of 6.25% senior notes due 2021 and $1,000 principal amount of 4.5% senior notes due 2023, which are fully and unconditionally guaranteed by Crown Holdings, Inc. (Parent) and substantially all subsidiaries in the United States. The guarantors are wholly owned by the Company and the guarantees are made on a joint and several basis. |
|
The following condensed combining financial statements: |
| | | | | | | | | | | | | | | | | | | | | | | |
• | statements of comprehensive income for the three and six months ended June 30, 2014 and 2013, | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
• | balance sheets as of June 30, 2014 and December 31, 2013, and | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
• | statements of cash flows for the six months ended June 30, 2014 and 2013 | | | | | | | | | | | | | | | | | | | | | | |
are presented on the following pages to comply with the Company’s requirements under Rule 3-10 of Regulation S-X. |
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the three months ended June 30, 2014 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net sales | | | | | $ | 572 | | | $ | 1,811 | | | | | $ | 2,383 | |
|
Cost of products sold, excluding depreciation and amortization | | | | | 462 | | | 1,498 | | | | | 1,960 | |
|
Depreciation and amortization | | | | | 8 | | | 39 | | | | | 47 | |
|
Gross profit | | | — | | | 102 | | | 274 | | | | | 376 | |
|
Selling and administrative expense | | | $ | 2 | | | 34 | | | 67 | | | | | 103 | |
|
Restructuring and other | | | (1 | ) | | 7 | | | 25 | | | | | 31 | |
|
Net interest expense | | | 18 | | | 21 | | | 26 | | | | | 65 | |
|
Technology royalty | | | | | (13 | ) | | 13 | | | | | — | |
|
Income/(loss) before income taxes | | | (19 | ) | | 53 | | | 143 | | | | | 177 | |
|
Provision for / (benefit from) income taxes | | | (7 | ) | | 27 | | | 30 | | | | | 50 | |
|
Equity earnings / (loss) in affiliates | $ | 106 | | | 59 | | | 84 | | | | | $ | (249 | ) | | — | |
|
Net income | 106 | | | 47 | | | 110 | | | 113 | | | (249 | ) | | 127 | |
|
Net income attributable to noncontrolling interests | | | | | | | (21 | ) | | | | (21 | ) |
|
Net income attributable to Crown Holdings | $ | 106 | | | $ | 47 | | | $ | 110 | | | $ | 92 | | | $ | (249 | ) | | $ | 106 | |
|
| | | | | | | | | | | |
Comprehensive income | $ | 130 | | | $ | 51 | | | $ | 134 | | | $ | 136 | | | $ | (297 | ) | | $ | 154 | |
|
Comprehensive income attributable to noncontrolling interests | | | | | | | | | | (24 | ) | | | | | (24 | ) |
|
Comprehensive income attributable to Crown Holdings | $ | 130 | | | $ | 51 | | | $ | 134 | | | $ | 112 | | | $ | (297 | ) | | $ | 130 | |
|
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the three months ended June 30, 2013 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net sales | | | | | $ | 580 | | | $ | 1,643 | | | | | $ | 2,223 | |
|
Cost of products sold, excluding depreciation and amortization | | | | | 434 | | | 1,384 | | | | | 1,818 | |
|
Depreciation and amortization | | | | | 6 | | | 24 | | | | | 30 | |
|
Gross profit | | | — | | | 140 | | | 235 | | | | | 375 | |
|
Selling and administrative expense | | | $ | 1 | | | 34 | | | 67 | | | | | 102 | |
|
Restructuring and other | | | | | | | 4 | | | | | 4 | |
|
Net interest expense | | | 11 | | | 23 | | | 26 | | | | | 60 | |
|
Technology royalty | | | | | (13 | ) | | 13 | | | | | — | |
|
Income/(loss) before income taxes | | | (12 | ) | | 96 | | | 125 | | | | | 209 | |
|
Provision for / (benefit from) income taxes | | | (5 | ) | | 39 | | | 21 | | | | | 55 | |
|
Equity earnings / (loss) in affiliates | $ | 133 | | | 72 | | | 76 | | | | | $ | (280 | ) | | 1 | |
|
Net income | 133 | | | 65 | | | 133 | | | 104 | | | (280 | ) | | 155 | |
|
Net income attributable to noncontrolling interests | | | | | | | (22 | ) | | | | (22 | ) |
|
Net income attributable to Crown Holdings | $ | 133 | | | $ | 65 | | | $ | 133 | | | $ | 82 | | | $ | (280 | ) | | $ | 133 | |
|
| | | | | | | | | | | |
Comprehensive income | $ | 148 | | | $ | 67 | | | $ | 148 | | | $ | 116 | | | $ | (310 | ) | | $ | 169 | |
|
Comprehensive income attributable to noncontrolling interests | | | | | | | | | | (21 | ) | | | | | (21 | ) |
|
Comprehensive income attributable to Crown Holdings | $ | 148 | | | $ | 67 | | | $ | 148 | | | $ | 95 | | | $ | (310 | ) | | $ | 148 | |
|
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the six months ended June 30, 2014 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net sales | | | | | $ | 1,071 | | | $ | 3,305 | | | | | $ | 4,376 | |
|
Cost of products sold, excluding depreciation and amortization | | | | | 860 | | | 2,761 | | | | | 3,621 | |
|
Depreciation and amortization | | | | | 15 | | | 67 | | | | | 82 | |
|
Gross profit | | | | | 196 | | | 477 | | | | | 673 | |
|
Selling and administrative expense | | | $ | 4 | | | 73 | | | 130 | | | | | 207 | |
|
Restructuring and other | | | 1 | | | 43 | | | 39 | | | | | 83 | |
|
Net interest expense | | | 27 | | | 43 | | | 51 | | | | | 121 | |
|
Technology royalty | | | | | (24 | ) | | 24 | | | | | — | |
|
Foreign exchange | | | | | | | 6 | | | | | 6 | |
|
Income/(loss) before income taxes | | | (32 | ) | | 61 | | | 227 | | | | | 256 | |
|
Provision for / (benefit from) income taxes | | | (12 | ) | | 41 | | | 54 | | | | | 83 | |
|
Equity earnings / (loss) in affiliates | $ | 130 | | | 99 | | | 114 | | | | | $ | (343 | ) | | — | |
|
Net income | 130 | | | 79 | | | 134 | | | 173 | | | (343 | ) | | 173 | |
|
Net income attributable to noncontrolling interests | | | | | | | (43 | ) | | | | (43 | ) |
Net income attributable to Crown Holdings | $ | 130 | | | $ | 79 | | | $ | 134 | | | $ | 130 | | | $ | (343 | ) | | $ | 130 | |
|
| | | | | | | | | | | |
Comprehensive Income | $ | 172 | | | $ | 89 | | | $ | 176 | | | $ | 208 | | | $ | (427 | ) | | $ | 218 | |
|
Comprehensive income attributable to noncontrolling interests | | | | | | | (46 | ) | | | | (46 | ) |
Comprehensive income attributable to Crown Holdings | $ | 172 | | | $ | 89 | | | $ | 176 | | | $ | 162 | | | $ | (427 | ) | | $ | 172 | |
|
CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME |
For the six months ended June 30, 2013 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net sales | | | | | $ | 1,114 | | | $ | 3,082 | | | | | $ | 4,196 | |
|
Cost of products sold, excluding depreciation and amortization | | | | | 863 | | | 2,595 | | | | | 3,458 | |
|
Depreciation and amortization | | | | | 13 | | | 51 | | | | | 64 | |
|
Gross profit | | | | | 238 | | | 436 | | | | | 674 | |
|
Selling and administrative expense | | | $ | 4 | | | 71 | | | 131 | | | | | 206 | |
|
Restructuring and other | | | | | 4 | | | 4 | | | | | 8 | |
|
Loss from early extinguishment of debt | | | 37 | | | | | 1 | | | | | 38 | |
|
Net interest expense | | | 24 | | | 46 | | | 48 | | | | | 118 | |
|
Technology royalty | | | | | (22 | ) | | 22 | | | | | — | |
|
Foreign exchange | | | | | | | 2 | | | | | 2 | |
|
Income/(loss) before income taxes | | | (65 | ) | | 139 | | | 228 | | | | | 302 | |
|
Provision for / (benefit from) income taxes | | | (25 | ) | | 67 | | | 37 | | | | | 79 | |
|
Equity earnings / (loss) in affiliates | $ | 174 | | | 124 | | | 102 | | | | | $ | (401 | ) | | (1 | ) |
|
Net income | 174 | | | 84 | | | 174 | | | 191 | | | (401 | ) | | 222 | |
|
Net income attributable to noncontrolling interests | | | | | | | (48 | ) | | | | (48 | ) |
Net income attributable to Crown Holdings | $ | 174 | | | $ | 84 | | | $ | 174 | | | $ | 143 | | | $ | (401 | ) | | $ | 174 | |
|
| | | | | | | | | | | |
Comprehensive income | $ | 172 | | | $ | 91 | | | $ | 172 | | | $ | 178 | | | $ | (397 | ) | | $ | 216 | |
|
Comprehensive income attributable to noncontrolling interests | | | | | | | (44 | ) | | | | (44 | ) |
Comprehensive income attirbutable to Crown Holdings | $ | 172 | | | $ | 91 | | | $ | 172 | | | $ | 134 | | | $ | (397 | ) | | $ | 172 | |
|
CONDENSED COMBINING BALANCE SHEET |
As of June 30, 2014 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Assets | | | | | | | | | | | |
Current assets | | | | | | | | | | | |
Cash and cash equivalents | | | $ | 30 | | | | | | $ | 214 | | | | | $ | 244 | |
|
Receivables, net | | | | | $ | 17 | | | 1,247 | | | | | 1,264 | |
|
Intercompany receivables | | | | | 31 | | | 17 | | | $ | (48 | ) | | — | |
|
Inventories | | | | | 291 | | | 1,324 | | | | | 1,615 | |
|
Prepaid expenses and other current assets | $ | 2 | | | 1 | | | 87 | | | 274 | | | | | 364 | |
|
Total current assets | 2 | | | 31 | | | 426 | | | 3,076 | | | (48 | ) | | 3,487 | |
|
| | | | | | | | | | | |
Intercompany debt receivables | | | 2,469 | | | 2,801 | | | | | | (5,270 | ) | | — | |
|
Investments | 2,235 | | | 2,024 | | | 808 | | | | | (5,067 | ) | | — | |
|
Goodwill and intangible assets | | | | | 453 | | | 2,819 | | | | | 3,272 | |
|
Property, plant and equipment, net | | | 1 | | | 315 | | | 2,180 | | | | | 2,496 | |
|
Other non-current assets | | | 53 | | | 342 | | | 245 | | | | | 640 | |
|
Total | $ | 2,237 | | | $ | 4,578 | | | $ | 5,145 | | | $ | 8,320 | | | $ | (10,385 | ) | | $ | 9,895 | |
|
| | | | | | | | | | | |
Liabilities and equity | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | |
Short-term debt | | | | | | | $ | 172 | | | | | $ | 172 | |
|
Current maturities of long-term debt | | | | | | | | 90 | | | | | 90 | |
|
Accounts payable and accrued liabilities | $ | 10 | | | $ | 47 | | | $ | 473 | | | 2,057 | | | | | 2,587 | |
|
Intercompany payables | | | | | 17 | | | 31 | | | $ | (48 | ) | | — | |
|
Total current liabilities | 10 | | | 47 | | | 490 | | | 2,350 | | | (48 | ) | | 2,849 | |
|
| | | | | | | | | | | |
Long-term debt, excluding current maturities | | | 2,862 | | | 412 | | | 1,956 | | | | | 5,230 | |
|
Long-term intercompany debt | 2,083 | | | 534 | | | 2,388 | | | 265 | | | (5,270 | ) | | — | |
|
Postretirement and pension liabilities | | | | | 279 | | | 557 | | | | | 836 | |
|
Other non-current liabilities | | | | | 278 | | | 290 | | | | | 568 | |
|
Commitments and contingent liabilities | | | | | | | | | | | |
|
Noncontrolling interests | | | | | | | 268 | | | | | 268 | |
|
Crown Holdings shareholders’ equity/(deficit) | 144 | | | 1,135 | | | 1,298 | | | 2,634 | | | (5,067 | ) | | 144 | |
|
Total equity/(deficit) | 144 | | | 1,135 | | | 1,298 | | | 2,902 | | | (5,067 | ) | | 412 | |
|
Total | $ | 2,237 | | | $ | 4,578 | | | $ | 5,145 | | | $ | 8,320 | | | $ | (10,385 | ) | | $ | 9,895 | |
|
CONDENSED COMBINING BALANCE SHEET |
As of December 31, 2013 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Assets | | | | | | | | | | | |
Current assets | | | | | | | | | | | |
Cash and cash equivalents | | | $ | 177 | | | $ | 2 | | | $ | 510 | | | | | $ | 689 | |
|
Receivables, net | | | | | 26 | | | 1,038 | | | | | 1,064 | |
|
Intercompany receivables | | | | | 30 | | | 81 | | | $ | (111 | ) | | — | |
|
Inventories | | | | | 266 | | | 947 | | | | | 1,213 | |
|
Prepaid expenses and other current assets | $ | 1 | | | 2 | | | 109 | | | 102 | | | | | 214 | |
|
Total current assets | 1 | | | 179 | | | 433 | | | 2,678 | | | (111 | ) | | 3,180 | |
|
| | | | | | | | | | | |
Intercompany debt receivables | | | 1,476 | | | 1,808 | | | 19 | | | (3,303 | ) | | — | |
|
Investments | 1,176 | | | 1,917 | | | 685 | | | | | (3,778 | ) | | — | |
|
Goodwill and intangible assets | | | | | 453 | | | 1,563 | | | | | 2,016 | |
|
Property, plant and equipment, net | | | 1 | | | 314 | | | 1,837 | | | | | 2,152 | |
|
Other non-current assets | | | 36 | | | 388 | | | 258 | | | | | 682 | |
|
Total | $ | 1,177 | | | $ | 3,609 | | | $ | 4,081 | | | $ | 6,355 | | | $ | (7,192 | ) | | $ | 8,030 | |
|
| | | | | | | | | | | |
Liabilities and equity | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | |
Short-term debt | | | | | | | $ | 279 | | | | | $ | 279 | |
|
Current maturities of long-term debt | | | | | | | | | 94 | | | | | 94 | |
|
Accounts payable and accrued liabilities | $ | 16 | | | $ | 49 | | | $ | 466 | | | 2,016 | | | | | 2,547 | |
|
Intercompany payables | | | | | 81 | | | 30 | | | $ | (111 | ) | | — | |
|
Total current liabilities | 16 | | | 49 | | | 547 | | | 2,419 | | | (111 | ) | | 2,920 | |
|
| | | | | | | | | | | |
Long-term debt, excluding current maturities | | | 1,920 | | | 412 | | | 1,137 | | | | | 3,469 | |
|
Long-term intercompany debt | 1,157 | | | 594 | | | 1,353 | | | 199 | | | (3,303 | ) | | — | |
|
Postretirement and pension liabilities | | | | | 299 | | | 592 | | | | | 891 | |
|
Other non-current liabilities | | | | | 294 | | | 167 | | | | | 461 | |
|
Commitments and contingent liabilities | | | | | | | | | | | |
|
Noncontrolling interests | | | | | | | 285 | | | | | 285 | |
|
Crown Holdings shareholders’ equity/(deficit) | 4 | | | 1,046 | | | 1,176 | | | 1,556 | | | (3,778 | ) | | 4 | |
|
Total equity/(deficit) | 4 | | | 1,046 | | | 1,176 | | | 1,841 | | | (3,778 | ) | | 289 | |
|
Total | $ | 1,177 | | | $ | 3,609 | | | $ | 4,081 | | | $ | 6,355 | | | $ | (7,192 | ) | | $ | 8,030 | |
|
CONDENSED COMBINING STATEMENT OF CASH FLOWS |
For the six months ended June 30, 2014 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net provided by/(used for) operating activities | $ | 7 | | | $ | (18 | ) | | $ | (2 | ) | | $ | (104 | ) | | | | $ | (117 | ) |
|
Cash flows from investing activities | | | | | | | | | | | |
Capital expenditures | | | | | (17 | ) | | (132 | ) | | | | (149 | ) |
|
Purchase of business | | | | | | | | (733 | ) | | | | (733 | ) |
|
Proceeds from sale of property, plant and equipment | | | | | 4 | | | 1 | | | | | 5 | |
|
Proceeds from sale of business | | | | | | | | 22 | | | | | 22 | |
|
Intercompany investing activities | (941 | ) | | 3 | | | 47 | | | 941 | | | $ | (50 | ) | | — | |
|
Other | | | | | | | | 1 | | | | | 1 | |
|
Net cash provided by/(used for) investing activities | (941 | ) | | 3 | | | 34 | | | 100 | | | (50 | ) | | (854 | ) |
|
Cash flows from financing activities | | | | | | | | | | | |
Proceeds from long-term debt | | | 942 | | | | | 885 | | | | | 1,827 | |
|
Payments of long-term debt | | | | | | | | | (1,015 | ) | | | | (1,015 | ) |
|
Net change in revolving credit facility and short-term debt | | | | | | | | (130 | ) | | | | (130 | ) |
|
Net change in long-term intercompany balances | 926 | | | (1,053 | ) | | 42 | | | 85 | | | | | — | |
|
Debt issue costs | | | (21 | ) | | | | (12 | ) | | | | (33 | ) |
|
Common stock issued | 10 | | | | | | | | | | | 10 | |
|
Common stock repurchased | (2 | ) | | | | | | | | | | (2 | ) |
|
Dividends paid | | | | | | | (50 | ) | | 50 | | | — | |
|
Purchase of noncontrolling interests | | | | | (76 | ) | | (17 | ) | | | | (93 | ) |
|
Dividends paid to noncontrolling interests | | | | | | | (34 | ) | | | | (34 | ) |
|
Other | | | | | | | (2 | ) | | | | (2 | ) |
|
Net cash provided by/(used for) financing activities | 934 | | | (132 | ) | | (34 | ) | | (290 | ) | | 50 | | | 528 | |
|
Effect of exchange rate changes on cash and cash equivalents | | | | | | | (2 | ) | | | | (2 | ) |
|
Net change in cash and cash equivalents | — | | | (147 | ) | | (2 | ) | | (296 | ) | | — | | | (445 | ) |
|
Cash and cash equivalents at January 1 | | | 177 | | | 2 | | | 510 | | | | | 689 | |
|
Cash and cash equivalents at June 30 | $ | — | | | $ | 30 | | | $ | — | | | $ | 214 | | | $ | — | | | $ | 244 | |
|
|
|
CONDENSED COMBINING STATEMENT OF CASH FLOWS |
For the six months ended June 30, 2013 |
(in millions) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Issuer | | Guarantors | | Non- | | Eliminations | | Total |
Guarantors | Company |
Net provided by/(used for) operating activities | $ | 2 | | | $ | (5 | ) | | $ | 65 | | | $ | (313 | ) | | | | $ | (251 | ) |
|
Cash flows from investing activities | | | | | | | | | | | |
Capital expenditures | | | | | (13 | ) | | (111 | ) | | | | (124 | ) |
|
Insurance Proceeds | | | | | | | 8 | | | | | 8 | |
|
Proceeds from sale of property, plant and equipment | | | | | 3 | | | 2 | | | | | 5 | |
|
Intercompany investing activities | | | 2 | | | 46 | | | | | | $ | (48 | ) | | — | |
|
Other | | | | | | | | (5 | ) | | | | (5 | ) |
|
Net cash provided by/(used for) investing activities | — | | | 2 | | | 36 | | | (106 | ) | | (48 | ) | | (116 | ) |
|
Cash flows from financing activities | | | | | | | | | | | |
Proceeds from long-term debt | | | 1,000 | | | | | 40 | | | | | 1,040 | |
|
Payments of long-term debt | | | (729 | ) | | | | | (255 | ) | | | | (984 | ) |
|
Net change in revolving credit facility and short-term debt | | | 130 | | | | | 293 | | | | | 423 | |
|
Net change in long-term intercompany balances | 179 | | | (389 | ) | | (102 | ) | | 312 | | | | | — | |
|
Debt issue costs | | | | (15 | ) | | | | | | | | (15 | ) |
|
Common stock issued | 13 | | | | | | | | | | | 13 | |
|
Common stock repurchased | (194 | ) | | | | | | | | | | (194 | ) |
|
Dividends paid | | | | | | | (48 | ) | | 48 | | | — | |
|
Purchase of noncontrolling interests | | | | | | | (10 | ) | | | | (10 | ) |
|
Dividends paid to noncontrolling interests | | | | | | | (35 | ) | | | | (35 | ) |
|
Other | | | | | | | | 11 | | | | | 11 | |
|
Net cash provided by/(used for) financing activities | (2 | ) | | (3 | ) | | (102 | ) | | 308 | | | 48 | | | 249 | |
|
Effect of exchange rate changes on cash and cash equivalents | | | | | | | (5 | ) | | | | (5 | ) |
|
Net change in cash and cash equivalents | — | | | (6 | ) | | (1 | ) | | (116 | ) | | — | | | (123 | ) |
|
Cash and cash equivalents at January 1 | | | 27 | | | 1 | | | 322 | | | | | 350 | |
|
Cash and cash equivalents at June 30 | $ | — | | | $ | 21 | | | $ | — | | | $ | 206 | | | $ | — | | | $ | 227 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |