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 $45 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 months ended March 31, 2016 and 2015 , • balance sheets as of March 31, 2016 and December 31, 2015 , and • statements of cash flows for the three months ended March 31, 2016 and 2015 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 March 31, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net sales $ 1,893 $ 1,893 Cost of products sold, excluding depreciation and amortization 1,521 1,521 Depreciation and amortization 60 60 Selling and administrative expense $ 2 89 91 Restructuring and other 2 2 Income from operations (2 ) 221 219 Loss on early extinguishments of debt 27 27 Net interest expense 27 34 61 Foreign exchange (6 ) (6 ) Income/(loss) before income taxes (29 ) 166 137 Provision for / (benefit from) income taxes (7 ) 45 38 Equity earnings / (loss) in affiliates $ 79 77 $ (156 ) — Net income 79 55 121 (156 ) 99 Net income attributable to noncontrolling interests (20 ) (20 ) Net income attributable to Crown Holdings $ 79 $ 55 $ 101 $ (156 ) $ 79 Comprehensive income $ 102 $ 145 $ 145 $ (269 ) $ 123 Comprehensive income attributable to noncontrolling interests (21 ) (21 ) Comprehensive income attributable to Crown Holdings $ 102 $ 145 $ 124 $ (269 ) $ 102 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the three months ended March 31, 2015 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net sales $ 1,997 $ 1,997 Cost of products sold, excluding depreciation and amortization 1,660 1,660 Depreciation and amortization 51 51 Selling and administrative expense $ 2 96 98 Restructuring and other 20 20 Income from operations (2 ) 170 168 Net interest expense 26 37 63 Foreign exchange 6 6 Income/(loss) before income taxes (28 ) 127 99 Provision for / (benefit from) income taxes (1 ) 38 37 Equity earnings / (loss) in affiliates $ 44 57 $ (101 ) — Net income 44 30 89 (101 ) 62 Net income attributable to noncontrolling interests (18 ) (18 ) Net income attributable to Crown Holdings $ 44 $ 30 $ 71 $ (101 ) $ 44 Comprehensive income $ (156 ) $ (78 ) $ (113 ) $ 207 $ (140 ) Comprehensive income attributable to noncontrolling interests (16 ) (16 ) Comprehensive income attributable to Crown Holdings $ (156 ) $ (78 ) $ (129 ) $ 207 $ (156 ) CONDENSED COMBINING BALANCE SHEET As of March 31, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 257 $ 257 Receivables, net 980 980 Inventories 1,413 1,413 Prepaid expenses and other current assets $ 1 $ 2 251 254 Total current assets 1 2 2,901 2,904 Intercompany debt receivables 3,548 $ (3,548 ) — Investments 2,890 2,653 (5,543 ) — Goodwill and intangible assets 3,627 3,627 Property, plant and equipment, net 2,727 2,727 Other non-current assets 430 252 682 Total $ 2,891 $ 3,085 $ 13,055 $ (9,091 ) $ 9,940 Liabilities and equity Current liabilities Short-term debt $ 67 $ 67 Current maturities of long-term debt 239 239 Accounts payable and accrued liabilities $ 10 $ 41 2,361 2,412 Total current liabilities 10 41 2,667 2,718 Long-term debt, excluding current maturities 391 4,902 5,293 Long-term intercompany debt 2,632 916 $ (3,548 ) — Postretirement and pension liabilities 720 720 Other non-current liabilities 296 360 656 Commitments and contingent liabilities Noncontrolling interests 304 304 Crown Holdings shareholders’ equity/(deficit) 249 1,441 4,102 (5,543 ) 249 Total equity/(deficit) 249 1,441 4,406 (5,543 ) 553 Total $ 2,891 $ 3,085 $ 13,055 $ (9,091 ) $ 9,940 CONDENSED COMBINING BALANCE SHEET As of December 31, 2015 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 717 $ 717 Receivables, net 912 912 Inventories 1,213 1,213 Prepaid expenses and other current assets $ 2 205 207 Total current assets — 2 3,047 3,049 Intercompany debt receivables 3,654 $ (3,654 ) — Investments $ 2,937 2,490 (5,427 ) — Goodwill and intangible assets 3,580 3,580 Property, plant and equipment, net 2,699 2,699 Other non-current assets 430 262 692 Total $ 2,937 $ 2,922 $ 13,242 $ (9,081 ) $ 10,020 Liabilities and equity Current liabilities Short-term debt $ 54 $ 54 Current maturities of long-term debt 209 209 Accounts payable and accrued liabilities $ 24 $ 41 2,580 2,645 Total current liabilities 24 41 2,843 2,908 Long-term debt, excluding current maturities 391 4,864 5,255 Long-term intercompany debt 2,769 885 $ (3,654 ) — Postretirement and pension liabilities 767 767 Other non-current liabilities 309 346 655 Commitments and contingent liabilities Noncontrolling interests 291 291 Crown Holdings shareholders’ equity/(deficit) 144 1,296 4,131 (5,427 ) 144 Total equity/(deficit) 144 1,296 4,422 (5,427 ) 435 Total $ 2,937 $ 2,922 $ 13,242 $ (9,081 ) $ 10,020 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the three months ended March 31, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net cash provided by/(used for) operating activities $ (10 ) $ (31 ) $ (364 ) (3 ) $ (408 ) Cash flows from investing activities Capital expenditures (51 ) (51 ) Intercompany investing activities 150 $ (150 ) — Other 3 3 Net cash provided by/(used for) investing activities 150 — (48 ) (150 ) (48 ) Cash flows from financing activities Proceeds from long-term debt 303 303 Payments of long-term debt (709 ) (709 ) Net change in revolving credit facility and short-term debt 383 383 Net change in long-term intercompany balances (137 ) 31 106 — Debt issue costs (2 ) (2 ) Common stock issued 1 1 Common stock repurchased (4 ) (4 ) Dividends paid (153 ) 153 — Dividend paid to noncontrolling interests (8 ) (8 ) Foreign exchange derivatives related to debt 32 32 Net cash provided by/(used for) financing activities (140 ) 31 (48 ) 153 (4 ) Effect of exchange rate changes on cash and cash equivalents — Net change in cash and cash equivalents — — (460 ) — (460 ) Cash and cash equivalents at January 1 717 717 Cash and cash equivalents at March 31 $ — $ — $ 257 $ — $ 257 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the three months ended March 31, 2015 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net cash provided by/(used for) operating activities $ (2 ) $ (35 ) $ (250 ) $ (287 ) Cash flows from investing activities Capital expenditures (52 ) (52 ) Purchase of business (1,206 ) (1,206 ) Proceeds from sale of business 21 21 Intercompany investing activities (1,006 ) 4 1,006 $ (4 ) — Other (9 ) (9 ) Net cash provided by/(used for) investing activities (1,006 ) 4 (240 ) (4 ) (1,246 ) Cash flows from financing activities Proceeds from long-term debt 750 750 Payments of long-term debt (41 ) (41 ) Net change in revolving credit facility and short-term debt 234 234 Net change in long-term intercompany balances 1,009 31 (1,040 ) — Common stock issued 3 3 Common stock repurchased (4 ) (4 ) Dividends paid (4 ) 4 — Purchase of noncontrolling interests — — Dividend paid to noncontrolling interests (9 ) (9 ) Foreign exchange derivatives related to debt (47 ) (47 ) Net cash provided by/(used for) financing activities 1,008 31 (157 ) 4 886 Effect of exchange rate changes on cash and cash equivalents (38 ) (38 ) Net change in cash and cash equivalents — — (685 ) — (685 ) Cash and cash equivalents at January 1 965 965 Cash and cash equivalents at March 31 $ — $ — $ 280 $ — $ 280 Crown Americas, LLC, Crown Americas Capital Corp. II and Crown Americas Capital Corp. III (collectively, the Issuer), 100% owned subsidiaries of the Company, have outstanding $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 months ended March 31, 2016 and 2015 , • balance sheets as of March 31, 2016 and December 31, 2015 , and • statements of cash flows for the three months ended March 31, 2016 and 2015 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 March 31, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net sales $ 447 $ 1,446 $ 1,893 Cost of products sold, excluding depreciation and amortization 363 1,158 1,521 Depreciation and amortization 8 52 60 Selling and administrative expense $ 3 35 53 91 Restructuring and other 4 (2 ) 2 Income from operations (3 ) 37 185 219 Loss from early extinguishments of debt 27 27 Net interest expense 20 22 19 61 Technology royalty (9 ) 9 — Foreign exchange 32 (6 ) $ (32 ) (6 ) Income/(loss) before income taxes (82 ) 24 163 32 137 Provision for / (benefit from) income taxes (31 ) 14 44 11 38 Equity earnings / (loss) in affiliates $ 79 64 45 (188 ) — Net income 79 13 55 119 (167 ) 99 Net income attributable to noncontrolling interests (20 ) (20 ) Net income attributable to Crown Holdings $ 79 $ 13 $ 55 $ 99 $ (167 ) $ 79 Comprehensive income $ 102 $ 16 $ 145 $ 172 $ (312 ) $ 123 Comprehensive income attributable to noncontrolling interests (21 ) (21 ) Comprehensive income attributable to Crown Holdings $ 102 $ 16 $ 145 $ 151 $ (312 ) $ 102 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the three months ended March 31, 2015 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net sales $ 486 $ 1,511 $ 1,997 Cost of products sold, excluding depreciation and amortization 387 1,273 1,660 Depreciation and amortization 8 43 51 Selling and administrative expense $ 2 42 54 98 Restructuring and other 20 20 Income from operations (2 ) 49 121 168 Net interest expense 20 23 20 63 Technology royalty (9 ) 9 — Foreign exchange 6 6 Income/(loss) before income taxes (22 ) 35 86 99 Provision for / (benefit from) income taxes (8 ) 23 22 37 Equity earnings / (loss) in affiliates $ 44 50 18 $ (112 ) — Net income 44 36 30 64 (112 ) 62 Net income attributable to noncontrolling interests (18 ) (18 ) Net income attributable to Crown Holdings $ 44 $ 36 $ 30 $ 46 $ (112 ) $ 44 Comprehensive income $ (156 ) $ 40 $ (78 ) $ (142 ) $ 196 $ (140 ) Comprehensive income attributable to noncontrolling interests (16 ) (16 ) Comprehensive income attributable to Crown Holdings $ (156 ) $ 40 $ (78 ) $ (158 ) $ 196 $ (156 ) CONDENSED COMBINING BALANCE SHEET As of March 31, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 46 $ 211 $ 257 Receivables, net $ 7 973 980 Intercompany receivables 33 10 $ (43 ) — Inventories 343 1,070 1,413 Prepaid expenses and other current assets $ 1 2 10 241 254 Total current assets 1 48 393 2,505 (43 ) 2,904 Intercompany debt receivables 2,847 3,374 719 (6,940 ) — Investments 2,890 2,261 794 (5,945 ) — Goodwill and intangible assets 470 3,157 3,627 Property, plant and equipment, net 1 391 2,335 2,727 Other non-current assets 5 463 214 682 Total $ 2,891 $ 5,162 $ 5,885 $ 8,930 $ (12,928 ) $ 9,940 Liabilities and equity Current liabilities Short-term debt $ 67 $ 67 Current maturities of long-term debt $ 122 117 239 Accounts payable and accrued liabilities $ 10 18 $ 566 1,818 2,412 Intercompany payables 10 33 $ (43 ) — Total current liabilities 10 140 576 2,035 (43 ) 2,718 Long-term debt, excluding current maturities 2,408 391 2,494 5,293 Long-term intercompany debt 2,632 1,339 2,817 152 (6,940 ) — Postretirement and pension liabilities 354 366 720 Other non-current liabilities 306 350 656 Commitments and contingent liabilities Noncontrolling interests 304 304 Crown Holdings shareholders’ equity/(deficit) 249 1,275 1,441 3,229 (5,945 ) 249 Total equity/(deficit) 249 1,275 1,441 3,533 (5,945 ) 553 Total $ 2,891 $ 5,162 $ 5,885 $ 8,930 $ (12,928 ) $ 9,940 CONDENSED COMBINING BALANCE SHEET As of December 31, 2015 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 104 $ 613 $ 717 Receivables, net $ 23 889 912 Intercompany receivables 30 2 $ (32 ) — Inventories 291 922 1,213 Prepaid expenses and other current assets 2 7 198 207 Total current assets 106 351 2,624 (32 ) 3,049 Intercompany debt receivables 3,111 3,471 681 (7,263 ) — Investments $ 2,937 2,199 804 (5,940 ) — Goodwill and intangible assets 471 3,109 3,580 Property, plant and equipment, net 1 390 2,308 2,699 Other non-current assets 6 457 229 692 Total $ 2,937 $ 5,423 $ 5,944 $ 8,951 $ (13,235 ) $ 10,020 Liabilities and equity Current liabilities Short-term debt $ 54 $ 54 Current maturities of long-term debt $ 90 119 209 Accounts payable and accrued liabilities $ 24 47 $ 526 2,048 2,645 Intercompany payables 2 30 $ (32 ) — Total current liabilities 24 137 528 2,251 (32 ) 2,908 Long-term debt, excluding current maturities 2,759 391 2,105 5,255 Long-term intercompany debt 2,769 1,268 3,041 185 (7,263 ) — Postretirement and pension liabilities 377 390 767 Other non-current liabilities 311 344 655 Commitments and contingent liabilities Noncontrolling interests 291 291 Crown Holdings shareholders’ equity/(deficit) 144 1,259 1,296 3,385 (5,940 ) 144 Total equity/(deficit) 144 1,259 1,296 3,676 (5,940 ) 435 Total $ 2,937 $ 5,423 $ 5,944 $ 8,951 $ (13,235 ) $ 10,020 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the three months ended March 31, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net provided by/(used for) operating activities $ (10 ) $ (66 ) $ (2 ) $ (323 ) (7 ) $ (408 ) Cash flows from investing activities Capital expenditures (21 ) (30 ) (51 ) Intercompany investing activities 150 150 $ (300 ) — Other 3 3 Net cash provided by/(used for) investing activities 150 — 129 (27 ) (300 ) (48 ) Cash flows from financing activities Proceeds from long-term debt 300 3 303 Payments of long-term debt (700 ) (9 ) (709 ) Net change in revolving credit facility and short-term debt 75 308 383 Net change in long-term intercompany balances (137 ) 335 (127 ) (71 ) — Debt issue costs (2 ) (2 ) Common stock issued 1 1 Common stock repurchased (4 ) (4 ) Dividends paid (307 ) 307 — Dividends paid to noncontrolling interests (8 ) (8 ) Foreign exchange derivatives related to debt 32 32 Net cash provided by/(used for) financing activities (140 ) 8 (127 ) (52 ) 307 (4 ) Effect of exchange rate changes on cash and cash equivalents — — Net change in cash and cash equivalents — (58 ) — (402 ) — (460 ) Cash and cash equivalents at January 1 104 613 717 Cash and cash equivalents at March 31 $ — $ 46 $ — $ 211 $ — $ 257 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the three months ended March 31, 2015 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net provided by/(used for) operating activities $ (2 ) $ (42 ) $ 25 $ (268 ) $ (287 ) Cash flows from investing activities Capital expenditures (13 ) (39 ) (52 ) Purchase of business (1,206 ) (1,206 ) Proceeds from sale of business 21 21 Intercompany investing activities (1,006 ) 2 4 1,006 $ (6 ) — Other (9 ) (9 ) Net cash provided by/(used for) investing activities (1,006 ) 2 (9 ) (227 ) (6 ) (1,246 ) Cash flows from financing activities Proceeds from long-term debt 750 750 Payments of long-term debt (2 ) (39 ) (41 ) Net change in revolving credit facility and short-term debt 155 79 234 Net change in long-term intercompany balances 1,009 (953 ) (16 ) (40 ) — Common stock issued 3 3 Common stock repurchased (4 ) (4 ) Dividends paid (6 ) 6 — Dividends paid to noncontrolling interests (9 ) (9 ) Foreign exchange derivatives related to debt (8 ) (39 ) (47 ) Net cash provided by/(used for) financing activities 1,008 (58 ) (16 ) (54 ) 6 886 Effect of exchange rate changes on cash and cash equivalents (38 ) (38 ) Net change in cash and cash equivalents — (98 ) — (587 ) — (685 ) Cash and cash equivalents at January 1 128 837 965 Cash and cash equivalents at March 31 $ — $ 30 $ — $ 250 $ — $ 280 |