Condensed Combining Financial Information | Condensed Combining Financial Information Crown Cork & Seal Company, Inc. (Issuer), a 100% 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, 2015 and 2014 , • balance sheets as of June 30, 2015 and December 31, 2014 , and • statements of cash flows for the six months ended June 30, 2015 and 2014 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, 2015 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net sales $ 2,278 $ 2,278 Cost of products sold, excluding depreciation and amortization 1,843 1,843 Depreciation and amortization 62 62 Gross profit 373 373 Selling and administrative expense $ 3 96 99 Restructuring and other (3 ) (3 ) Loss on early extinguishments of debt 9 9 Net interest expense 25 42 67 Foreign exchange (1 ) (1 ) Income/(loss) before income taxes (28 ) 230 202 Provision for / (benefit from) income taxes (8 ) 57 49 Equity earnings / (loss) in affiliates $ 142 131 $ (273 ) — Net income 142 111 173 (273 ) 153 Net income attributable to noncontrolling interests (11 ) (11 ) Net income attributable to Crown Holdings $ 142 $ 111 $ 162 $ (273 ) $ 142 Comprehensive income $ 150 $ 116 $ 181 $ (286 ) $ 161 Comprehensive income attributable to noncontrolling interests (11 ) (11 ) Comprehensive income attributable to Crown Holdings $ 150 $ 116 $ 170 $ (286 ) $ 150 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the three months ended June 30, 2014 (in millions) Parent Issuer Non- Guarantors Eliminations Total 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 six months ended June 30, 2015 (in millions) Parent Issuer Non- Eliminations Total Net sales $ 4,275 $ 4,275 Cost of products sold, excluding depreciation and amortization 3,503 3,503 Depreciation and amortization 113 113 Gross profit 659 659 Selling and administrative expense $ 5 192 197 Restructuring and other 17 17 Loss from early extinguishment of debt 9 9 Net interest expense 51 79 130 Foreign exchange 5 5 Income/(loss) before income taxes (56 ) 357 301 Provision for / (benefit from) income taxes (9 ) 95 86 Equity earnings / (loss) in affiliates $ 186 188 $ (374 ) — Net income 186 141 262 (374 ) 215 Net income attributable to noncontrolling interests (29 ) (29 ) Net income attributable to Crown Holdings $ 186 $ 141 $ 233 $ (374 ) $ 186 Comprehensive income $ (6 ) $ 38 $ 68 $ (79 ) $ 21 Comprehensive income attributable to noncontrolling interests (27 ) (27 ) Comprehensive income attributable to Crown Holdings $ (6 ) $ 38 $ 41 $ (79 ) $ (6 ) CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the six months ended June 30, 2014 (in millions) Parent Issuer Non- Eliminations Total 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 BALANCE SHEET As of June 30, 2015 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 288 $ 288 Receivables, net 1,098 1,098 Inventories 1,454 1,454 Prepaid expenses and other current assets $ 1 $ 68 275 344 Total current assets 1 68 3,115 3,184 Intercompany debt receivables 3,792 $ (3,792 ) — Investments 3,055 2,430 (5,485 ) — Goodwill and intangible assets 3,790 3,790 Property, plant and equipment, net 2,672 2,672 Other non-current assets 397 316 713 Total $ 3,056 $ 2,895 $ 13,685 $ (9,277 ) $ 10,359 Liabilities and equity Current liabilities Short-term debt $ 56 $ 56 Current maturities of long-term debt 152 152 Accounts payable and accrued liabilities $ 13 $ 33 2,479 2,525 Total current liabilities 13 33 2,687 2,733 Long-term debt, excluding current maturities 412 5,265 5,677 Long-term intercompany debt 2,917 875 $ (3,792 ) — Postretirement and pension liabilities 862 862 Other non-current liabilities 302 381 683 Commitments and contingent liabilities Noncontrolling interests 278 278 Crown Holdings shareholders’ equity/(deficit) 126 1,273 4,212 (5,485 ) 126 Total equity/(deficit) 126 1,273 4,490 (5,485 ) 404 Total $ 3,056 $ 2,895 $ 13,685 $ (9,277 ) $ 10,359 CONDENSED COMBINING BALANCE SHEET As of December 31, 2014 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 965 $ 965 Receivables, net 1,031 1,031 Inventories 1,324 1,324 Prepaid expenses and other current assets $ 1 $ 69 186 256 Assets held for sale 48 48 Total current assets 1 69 3,554 3,624 Intercompany debt receivables 2,885 $ (2,885 ) — Investments 2,199 2,350 (4,549 ) — Goodwill and intangible assets 2,926 2,926 Property, plant and equipment, net 2,437 2,437 Other non-current assets 397 324 721 Total $ 2,200 $ 2,816 $ 12,126 $ (7,434 ) $ 9,708 Liabilities and equity Current liabilities Short-term debt $ 75 $ 75 Current maturities of long-term debt 177 177 Accounts payable and accrued liabilities $ 20 $ 35 2,596 2,651 Liabilities related to assets held for sale 23 23 Total current liabilities 20 35 2,871 2,926 Long-term debt, excluding current maturities 412 4,595 5,007 Long-term intercompany debt 2,061 824 $ (2,885 ) — Postretirement and pension liabilities 871 871 Other non-current liabilities 310 207 517 Commitments and contingent liabilities Noncontrolling interests 268 268 Crown Holdings shareholders’ equity/(deficit) 119 1,235 3,314 (4,549 ) 119 Total equity/(deficit) 119 1,235 3,582 (4,549 ) 387 Total $ 2,200 $ 2,816 $ 12,126 $ (7,434 ) $ 9,708 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the six months ended June 30, 2015 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net cash provided by/(used for) operating activities $ 10 $ (56 ) $ 31 $ (15 ) Cash flows from investing activities Capital expenditures (111 ) (111 ) Purchase of business (1,207 ) (1,207 ) Proceeds from sale of business 30 30 Intercompany investing activities (862 ) 5 862 $ (5 ) — Other (14 ) (14 ) Net cash provided by/(used for) investing activities (862 ) 5 (440 ) (5 ) (1,302 ) Cash flows from financing activities Proceeds from long-term debt 1,421 1,421 Payments of long-term debt (752 ) (752 ) Net change in revolving credit facility and short-term debt 96 96 Net change in long-term intercompany balances 856 51 (907 ) — Debt issue costs (17 ) (17 ) Common stock issued 5 5 Common stock repurchased (9 ) (9 ) Dividends paid (5 ) 5 — Dividend paid to noncontrolling interests (17 ) (17 ) Other (48 ) (48 ) Net cash provided by/(used for) financing activities 852 51 (229 ) 5 679 Effect of exchange rate changes on cash and cash equivalents (39 ) (39 ) Net change in cash and cash equivalents — — (677 ) — (677 ) Cash and cash equivalents at January 1 965 965 Cash and cash equivalents at June 30 $ — $ — $ 288 $ — $ 288 ONDENSED COMBINING STATEMENT OF CASH FLOWS For the six months ended June 30, 2014 (in millions) Parent Issuer Non- Guarantors Eliminations Total 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 business 22 22 Intercompany investing activities (941 ) 47 941 $ (47 ) — Other 6 6 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 noncontrolling 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 Crown Americas, LLC, Crown Americas Capital Corp. II and Crown Americas Capital Corp. III (collectively, the Issuers), 100% 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, 2015 and 2014 , • balance sheets as of June 30, 2015 and December 31, 2014 , and • statements of cash flows for the six months ended June 30, 2015 and 2014 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, 2015 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net sales $ 542 $ 1,736 $ 2,278 Cost of products sold, excluding depreciation and amortization 433 1,410 1,843 Depreciation and amortization 8 54 62 Gross profit 101 272 373 Selling and administrative expense $ 3 36 60 99 Restructuring and other 2 (5 ) (3 ) Loss from early extinguishments of debt 9 9 Net interest expense 24 23 20 67 Technology royalty (10 ) 10 — Foreign exchange 8 (1 ) (8 ) (1 ) Income/(loss) before income taxes (44 ) 50 188 8 202 Provision for / (benefit from) income taxes (17 ) 23 40 3 49 Equity earnings / (loss) in affiliates $ 142 38 84 $ (264 ) — Net income 142 11 111 148 (259 ) 153 Net income attributable to noncontrolling interests (11 ) (11 ) Net income attributable to Crown Holdings $ 142 $ 11 $ 111 $ 137 $ (259 ) $ 142 Comprehensive income $ 150 $ 13 $ 116 $ 162 $ (280 ) $ 161 Comprehensive income attributable to noncontrolling interests (11 ) (11 ) Comprehensive income attributable to Crown Holdings $ 150 $ 13 $ 116 $ 151 $ (280 ) $ 150 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the three months ended June 30, 2014 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total 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 six months ended June 30, 2015 (in millions) Parent Issuer Guarantors Non- Eliminations Total Net sales $ 1,028 $ 3,247 $ 4,275 Cost of products sold, excluding depreciation and amortization 820 2,683 3,503 Depreciation and amortization 16 97 113 Gross profit 192 467 659 Selling and administrative expense $ 5 78 114 197 Restructuring and other 2 15 17 Loss from early extinguishment of debt 9 9 Net interest expense 44 46 40 130 Technology royalty (19 ) 19 — Foreign exchange 8 5 (8 ) 5 Income/(loss) before income taxes (66 ) 85 274 8 301 Provision for / (benefit from) income taxes (25 ) 46 62 3 86 Equity earnings / (loss) in affiliates $ 186 88 102 $ (376 ) — Net income 186 47 141 212 (371 ) 215 Net income attributable to noncontrolling interests (29 ) (29 ) Net income attributable to Crown Holdings $ 186 $ 47 $ 141 $ 183 $ (371 ) $ 186 Comprehensive Income $ (6 ) $ 53 $ 38 $ 20 $ (84 ) $ 21 Comprehensive income attributable to noncontrolling interests (27 ) (27 ) Comprehensive income attributable to Crown Holdings $ (6 ) $ 53 $ 38 $ (7 ) $ (84 ) $ (6 ) CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the six months ended June 30, 2014 (in millions) Parent Issuer Guarantors Non- Eliminations Total 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 attirbutable to Crown Holdings $ 172 $ 89 $ 176 $ 162 $ (427 ) $ 172 CONDENSED COMBINING BALANCE SHEET As of June 30, 2015 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 57 $ 231 $ 288 Receivables, net $ 2 1,096 1,098 Intercompany receivables 34 11 $ (45 ) — Inventories 299 1,155 1,454 Prepaid expenses and other current assets $ 1 1 78 264 344 Total current assets 1 58 413 2,757 (45 ) 3,184 Intercompany debt receivables 3,252 3,643 699 (7,594 ) — Investments 3,055 2,097 838 (5,990 ) — Goodwill and intangible assets 472 3,318 3,790 Property, plant and equipment, net 1 331 2,340 2,672 Other non-current assets 48 412 253 713 Total $ 3,056 $ 5,456 $ 6,109 $ 9,367 $ (13,629 ) $ 10,359 Liabilities and equity Current liabilities Short-term debt $ 56 $ 56 Current maturities of long-term debt $ 47 105 152 Accounts payable and accrued liabilities $ 13 46 $ 512 1,954 2,525 Intercompany payables 11 34 $ (45 ) — Total current liabilities 13 93 523 2,149 (45 ) 2,733 Long-term debt, excluding current maturities 2,926 412 2,339 5,677 Long-term intercompany debt 2,917 1,271 3,160 246 (7,594 ) — Postretirement and pension liabilities 439 423 862 Other non-current liabilities 302 381 683 Commitments and contingent liabilities Noncontrolling interests 278 278 Crown Holdings shareholders’ equity/(deficit) 126 1,166 1,273 3,551 (5,990 ) 126 Total equity/(deficit) 126 1,166 1,273 3,829 (5,990 ) 404 Total $ 3,056 $ 5,456 $ 6,109 $ 9,367 $ (13,629 ) $ 10,359 CONDENSED COMBINING BALANCE SHEET As of December 31, 2014 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 128 $ 837 $ 965 Receivables, net $ 18 1,013 1,031 Intercompany receivables 20 11 $ (31 ) — Inventories 291 1,033 1,324 Prepaid expenses and other current assets $ 1 4 75 176 256 Assets held for sale 48 48 Total current assets 1 132 404 3,118 (31 ) 3,624 Intercompany debt receivables 2,415 2,640 27 (5,082 ) — Investments 2,199 2,005 850 (5,054 ) — Goodwill and intangible assets 473 2,453 2,926 Property, plant and equipment, net 1 328 2,108 2,437 Other non-current assets 51 413 257 721 Total $ 2,200 $ 4,604 $ 5,108 $ 7,963 $ (10,167 ) $ 9,708 Liabilities and equity Current liabilities Short-term debt $ 75 $ 75 Current maturities of long-term debt $ 44 133 177 Accounts payable and accrued liabilities $ 20 $ 49 480 2,102 2,651 Intercompany payables 11 20 $ (31 ) — Liabilities related to assets held for sale 23 23 Total current liabilities 20 49 535 2,353 (31 ) 2,926 Long-term debt, excluding current maturities 2,858 368 1,781 5,007 Long-term intercompany debt 2,061 584 2,199 238 (5,082 ) — Postretirement and pension liabilities 464 407 871 Other non-current liabilities 307 210 517 Commitments and contingent liabilities Noncontrolling interests 268 268 Crown Holdings shareholders’ equity/(deficit) 119 1,113 1,235 2,706 (5,054 ) 119 Total equity/(deficit) 119 1,113 1,235 2,974 (5,054 ) 387 Total $ 2,200 $ 4,604 $ 5,108 $ 7,963 $ (10,167 ) $ 9,708 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the six months ended June 30, 2015 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net provided by/(used for) operating activities $ 10 $ (29 ) $ 64 $ (60 ) $ (15 ) Cash flows from investing activities Capital expenditures (21 ) (90 ) (111 ) Purchase of business (1,207 ) (1,207 ) Proceeds from sale of business 30 30 Intercompany investing activities (862 ) 2 9 862 $ (11 ) — Other (10 ) (4 ) (14 ) Net cash provided by/(used for) investing activities (862 ) 2 (22 ) (409 ) (11 ) (1,302 ) Cash flows from financing activities Proceeds from long-term debt 750 671 1,421 Payments of long-term debt (675 ) (77 ) (752 ) Net change in revolving credit facility and short-term debt 40 56 96 Net change in long-term intercompany balances 856 (150 ) (42 ) (664 ) — Debt issue costs (9 ) (8 ) (17 ) Common stock issued 5 5 Common stock repurchased (9 ) (9 ) Dividends paid (11 ) 11 — Dividends paid to noncontrolling interests (17 ) (17 ) Other (48 ) (48 ) Net cash provided by/(used for) financing activities 852 (44 ) (42 ) (98 ) 11 679 Effect of exchange rate changes on cash and cash equivalents (39 ) (39 ) Net change in cash and cash equivalents — (71 ) — (606 ) — (677 ) Cash and cash equivalents at January 1 128 837 965 Cash and cash equivalents at June 30 $ — $ 57 $ — $ 231 $ — $ 288 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the six months ended June 30, 2014 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total 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 business 22 22 Intercompany investing activities (941 ) 3 47 941 $ (50 ) — Other 4 2 6 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 |