Condensed Combining Financial Information | Condensed Combining Financial Information Crown Cork & Seal Company, Inc. (Issuer), a 100% owned subsidiary of the Company, 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 and nine months ended September 30, 2016 and 2015 , • balance sheets as of September 30, 2016 and December 31, 2015 , and • statements of cash flows for the nine months ended September 30, 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 September 30, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net sales $ 2,326 $ 2,326 Cost of products sold, excluding depreciation and amortization 1,838 1,838 Depreciation and amortization 63 63 Selling and administrative expense $ 3 87 90 Restructuring and other 9 11 20 Income from operations (12 ) 327 315 Loss on early extinguishments of debt 10 10 Net interest expense 27 29 56 Foreign exchange (5 ) (5 ) Income/(loss) before income taxes (39 ) 293 254 Provision for / (benefit from) income taxes (19 ) 67 48 Equity earnings / (loss) in affiliates $ 183 180 $ (363 ) — Net income 183 160 226 (363 ) 206 Net income attributable to noncontrolling interests (23 ) (23 ) Net income attributable to Crown Holdings $ 183 $ 160 $ 203 $ (363 ) $ 183 Comprehensive income $ 143 $ 113 $ 165 $ (256 ) $ 165 Comprehensive income attributable to noncontrolling interests (22 ) (22 ) Comprehensive income attributable to Crown Holdings $ 143 $ 113 $ 143 $ (256 ) $ 143 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the three months ended September 30, 2015 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net sales $ 2,460 $ 2,460 Cost of products sold, excluding depreciation and amortization 1,984 1,984 Depreciation and amortization 61 61 Selling and administrative expense $ 3 91 94 Restructuring and other 40 40 Income from operations (3 ) 284 281 Net interest expense 25 39 64 Foreign exchange 9 9 Income/(loss) before income taxes (28 ) 236 208 Provision for / (benefit from) income taxes (15 ) 63 48 Equity earnings / (loss) in affiliates $ 141 110 $ (251 ) — Net income 141 97 173 (251 ) 160 Net income attributable to noncontrolling interests (19 ) (19 ) Net income attributable to Crown Holdings $ 141 $ 97 $ 154 $ (251 ) $ 141 Comprehensive income $ 9 $ 35 $ 38 $ (57 ) $ 25 Comprehensive income attributable to noncontrolling interests (16 ) (16 ) Comprehensive income attributable to Crown Holdings $ 9 $ 35 $ 22 $ (57 ) $ 9 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the nine months ended September 30, 2016 (in millions) Parent Issuer Non- Eliminations Total Net sales $ 6,361 $ 6,361 Cost of products sold, excluding depreciation and amortization 5,050 5,050 Depreciation and amortization 188 188 Selling and administrative expense $ 8 267 275 Restructuring and other 12 7 19 Income from operations (20 ) 849 829 Loss from early extinguishment of debt 37 37 Net interest expense 79 94 173 Foreign exchange (22 ) (22 ) Income/(loss) before income taxes (99 ) 740 641 Provision for / (benefit from) income taxes (42 ) 193 151 Equity earnings / (loss) in affiliates $ 431 403 $ (834 ) — Net income 431 346 547 (834 ) 490 Net income attributable to noncontrolling interests (59 ) (59 ) Net income attributable to Crown Holdings $ 431 $ 346 $ 488 $ (834 ) $ 431 Comprehensive income $ 310 $ 299 $ 428 $ (666 ) $ 371 Comprehensive income attributable to noncontrolling interests (61 ) (61 ) Comprehensive income attributable to Crown Holdings $ 310 $ 299 $ 367 $ (666 ) $ 310 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the nine months ended September 30, 2015 (in millions) Parent Issuer Non- Eliminations Total Net sales $ 6,735 $ 6,735 Cost of products sold, excluding depreciation and amortization 5,487 5,487 Depreciation and amortization 174 174 Selling and administrative expense $ 8 283 291 Restructuring and other 57 57 Income from operations (8 ) 734 726 Loss from early extinguishment of debt 9 9 Net interest expense 76 118 194 Foreign exchange 14 14 Income/(loss) before income taxes (84 ) 593 509 Provision for / (benefit from) income taxes (24 ) 158 134 Equity earnings / (loss) in affiliates $ 327 298 $ (625 ) — Net income 327 238 435 (625 ) 375 Net income attributable to noncontrolling interests (48 ) (48 ) Net income attributable to Crown Holdings $ 327 $ 238 $ 387 $ (625 ) $ 327 Comprehensive Income $ 3 $ 73 $ 106 $ (136 ) $ 46 Comprehensive income attributable to noncontrolling interests (43 ) (43 ) Comprehensive income attributable to Crown Holdings $ 3 $ 73 $ 63 $ (136 ) $ 3 CONDENSED COMBINING BALANCE SHEET As of September 30, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 526 $ 526 Receivables, net 1,047 1,047 Inventories 1,300 1,300 Prepaid expenses and other current assets $ 1 216 217 Total current assets 1 — 3,089 3,090 Intercompany debt receivables 3,583 $ (3,583 ) — Investments 3,098 $ 2,835 (5,933 ) — Goodwill and intangible assets 3,450 3,450 Property, plant and equipment, net 2,746 2,746 Other non-current assets 427 250 677 Total $ 3,099 $ 3,262 $ 13,118 $ (9,516 ) $ 9,963 Liabilities and equity Current liabilities Short-term debt $ 49 $ 49 Current maturities of long-term debt 121 121 Accounts payable and accrued liabilities $ 17 $ 40 2,570 2,627 Total current liabilities 17 40 2,740 2,797 Long-term debt, excluding current maturities 392 4,705 5,097 Long-term intercompany debt 2,613 970 $ (3,583 ) — Postretirement and pension liabilities 638 638 Other non-current liabilities 265 387 652 Commitments and contingent liabilities Noncontrolling interests 310 310 Crown Holdings shareholders’ equity/(deficit) 469 1,595 4,338 (5,933 ) 469 Total equity/(deficit) 469 1,595 4,648 (5,933 ) 779 Total $ 3,099 $ 3,262 $ 13,118 $ (9,516 ) $ 9,963 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 nine months ended September 30, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net cash provided by/(used for) operating activities $ 6 $ (86 ) $ 466 $ (10 ) $ 376 Cash flows from investing activities Capital expenditures (244 ) (244 ) Intercompany investing activities 150 (150 ) — Other 16 16 Net cash provided by/(used for) investing activities 150 — (228 ) (150 ) (228 ) Cash flows from financing activities Proceeds from long-term debt 1,379 1,379 Payments of long-term debt (1,810 ) (1,810 ) Net change in revolving credit facility and short-term debt 108 108 Net change in long-term intercompany balances (156 ) 86 70 — Debt issue costs (16 ) (16 ) Common stock issued 8 8 Common stock repurchased (8 ) (8 ) Dividends paid (160 ) 160 — Contributions from noncontrolling interests 1 1 Dividend paid to noncontrolling interests (43 ) (43 ) Foreign exchange derivatives related to debt 53 53 Net cash provided by/(used for) financing activities (156 ) 86 (418 ) 160 (328 ) Effect of exchange rate changes on cash and cash equivalents (11 ) (11 ) Net change in cash and cash equivalents — — (191 ) — (191 ) Cash and cash equivalents at January 1 717 717 Cash and cash equivalents at September 30 $ — $ — $ 526 $ — $ 526 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2015 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net cash provided by/(used for) operating activities $ 24 $ (65 ) $ 356 $ 315 Cash flows from investing activities Capital expenditures (176 ) (176 ) Purchase of business (1,207 ) (1,207 ) Proceeds from sale of business 33 33 Intercompany investing activities (865 ) 9 865 $ (9 ) — Net investment hedge settlements (11 ) (11 ) Other (13 ) (13 ) Net cash provided by/(used for) investing activities (865 ) 9 (509 ) (9 ) (1,374 ) Cash flows from financing activities Proceeds from long-term debt 1,435 1,435 Payments of long-term debt (780 ) (780 ) Net change in revolving credit facility and short-term debt 34 34 Net change in long-term intercompany balances 845 56 (901 ) — Debt issue costs (18 ) (18 ) Common stock issued 5 5 Common stock repurchased (9 ) (9 ) Dividends paid (9 ) 9 — Contributions from noncontrolling interests 3 3 Dividend paid to noncontrolling interests (21 ) (21 ) Foreign exchange derivatives related to debt (38 ) (38 ) Net cash provided by/(used for) financing activities 841 56 (295 ) 9 611 Effect of exchange rate changes on cash and cash equivalents (51 ) (51 ) Net change in cash and cash equivalents — — (499 ) — (499 ) Cash and cash equivalents at January 1 965 965 Cash and cash equivalents at September 30 $ — $ — $ 466 $ — $ 466 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 and $400 principal amount of 4.25% senior notes due 2026 , which are fully and unconditionally guaranteed by Crown Holdings, Inc. (Parent) and substantially all of its subsidiaries in the United States. The guarantors are 100% 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 nine months ended September 30, 2016 and 2015 , • balance sheets as of September 30, 2016 and December 31, 2015 , and • statements of cash flows for the nine months ended September 30, 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 September 30, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net sales $ 513 $ 1,813 $ 2,326 Cost of products sold, excluding depreciation and amortization 404 1,434 1,838 Depreciation and amortization 9 54 63 Selling and administrative expense $ 2 34 54 90 Restructuring and other 10 10 20 Income from operations (2 ) 56 261 315 Loss from early extinguishments of debt 5 5 10 Net interest expense 15 22 19 56 Technology royalty (13 ) 13 — Foreign exchange 9 (5 ) $ (9 ) (5 ) Income/(loss) before income taxes (31 ) 47 229 9 254 Provision for / (benefit from) income taxes (12 ) 13 44 3 48 Equity earnings / (loss) in affiliates $ 183 68 126 (377 ) — Net income 183 49 160 185 (371 ) 206 Net income attributable to noncontrolling interests (23 ) (23 ) Net income attributable to Crown Holdings $ 183 $ 49 $ 160 $ 162 $ (371 ) $ 183 Comprehensive income $ 143 $ 33 $ 113 $ 169 $ (293 ) $ 165 Comprehensive income attributable to noncontrolling interests (22 ) (22 ) Comprehensive income attributable to Crown Holdings $ 143 $ 33 $ 113 $ 147 $ (293 ) $ 143 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the three months ended September 30, 2015 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net sales $ 527 $ 1,933 $ 2,460 Cost of products sold, excluding depreciation and amortization 415 1,569 1,984 Depreciation and amortization 8 53 61 Selling and administrative expense $ 2 37 55 94 Restructuring and other 3 37 40 Income from operations (2 ) 64 219 281 Net interest expense 23 23 18 64 Technology royalty (13 ) 13 — Foreign exchange 3 9 $ (3 ) 9 Income/(loss) before income taxes (28 ) 54 179 3 208 Provision for / (benefit from) income taxes (11 ) 15 43 1 48 Equity earnings / (loss) in affiliates $ 141 70 58 (269 ) — Net income 141 53 97 136 (267 ) 160 Net income attributable to noncontrolling interests (19 ) (19 ) Net income attributable to Crown Holdings $ 141 $ 53 $ 97 $ 117 $ (267 ) $ 141 Comprehensive income $ 9 $ 48 $ 35 $ (25 ) $ (42 ) $ 25 Comprehensive income attributable to noncontrolling interests (16 ) (16 ) Comprehensive income attributable to Crown Holdings $ 9 $ 48 $ 35 $ (41 ) $ (42 ) $ 9 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the nine months ended September 30, 2016 (in millions) Parent Issuer Guarantors Non- Eliminations Total Net sales $ 1,468 $ 4,893 $ 6,361 Cost of products sold, excluding depreciation and amortization 1,174 3,876 5,050 Depreciation and amortization 25 163 188 Selling and administrative expense $ 7 102 166 275 Restructuring and other (5 ) 14 10 19 Income from operations (2 ) 153 678 829 Loss from early extinguishment of debt 32 5 37 Net interest expense 50 65 58 173 Technology royalty (32 ) 32 — Foreign exchange 24 (22 ) $ (24 ) (22 ) Income/(loss) before income taxes (108 ) 120 605 24 641 Provision for / (benefit from) income taxes (41 ) 42 142 8 151 Equity earnings / (loss) in affiliates $ 431 165 268 (864 ) — Net income 431 98 346 463 (848 ) 490 Net income attributable to noncontrolling interests (59 ) (59 ) Net income attributable to Crown Holdings $ 431 $ 98 $ 346 $ 404 $ (848 ) $ 431 Comprehensive Income $ 310 $ 88 $ 299 $ 378 $ (704 ) $ 371 Comprehensive income attributable to noncontrolling interests (61 ) (61 ) Comprehensive income attributable to Crown Holdings $ 310 $ 88 $ 299 $ 317 $ (704 ) $ 310 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the nine months ended September 30, 2015 (in millions) Parent Issuer Guarantors Non- Eliminations Total Net sales $ 1,555 $ 5,180 $ 6,735 Cost of products sold, excluding depreciation and amortization 1,235 4,252 5,487 Depreciation and amortization 24 150 174 Selling and administrative expense $ 7 115 169 291 Restructuring and other 5 52 57 Income from operations (7 ) 176 557 726 Loss from early extinguishment of debt 9 9 Net interest expense 67 69 58 194 Technology royalty (32 ) 32 — Foreign exchange 11 14 $ (11 ) 14 Income/(loss) before income taxes (94 ) 139 453 11 509 Provision for / (benefit from) income taxes (36 ) 61 105 4 134 Equity earnings / (loss) in affiliates $ 327 158 160 (645 ) — Net income 327 100 238 348 (638 ) 375 Net income attributable to noncontrolling interests (48 ) (48 ) Net income attributable to Crown Holdings $ 327 $ 100 $ 238 $ 300 $ (638 ) $ 327 Comprehensive income $ 3 $ 101 $ 73 $ (5 ) $ (126 ) $ 46 Comprehensive income attributable to noncontrolling interests (43 ) (43 ) Comprehensive income attirbutable to Crown Holdings $ 3 $ 101 $ 73 $ (48 ) $ (126 ) $ 3 CONDENSED COMBINING BALANCE SHEET As of September 30, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 48 $ 1 $ 477 $ 526 Receivables, net 3 11 1,033 1,047 Intercompany receivables 35 6 $ (41 ) — Inventories 304 996 1,300 Prepaid expenses and other current assets $ 1 2 8 206 217 Total current assets 1 53 359 2,718 (41 ) 3,090 Intercompany debt receivables 2,815 3,412 697 (6,924 ) — Investments 3,098 2,335 883 (6,316 ) — Goodwill and intangible assets 469 2,981 3,450 Property, plant and equipment, net 1 450 2,295 2,746 Other non-current assets 3 450 224 677 Total $ 3,099 $ 5,207 $ 6,023 $ 8,915 $ (13,281 ) $ 9,963 Liabilities and equity Current liabilities Short-term debt $ 49 $ 49 Current maturities of long-term debt $ 80 41 121 Accounts payable and accrued liabilities $ 17 19 $ 596 1,995 2,627 Intercompany payables 6 35 $ (41 ) — Total current liabilities 17 99 602 2,120 (41 ) 2,797 Long-term debt, excluding current maturities 2,437 392 2,268 5,097 Long-term intercompany debt 2,613 1,324 2,795 192 (6,924 ) — Postretirement and pension liabilities 344 294 638 Other non-current liabilities 295 357 652 Commitments and contingent liabilities Noncontrolling interests 310 310 Crown Holdings shareholders’ equity/(deficit) 469 1,347 1,595 3,374 (6,316 ) 469 Total equity/(deficit) 469 1,347 1,595 3,684 (6,316 ) 779 Total $ 3,099 $ 5,207 $ 6,023 $ 8,915 $ (13,281 ) $ 9,963 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 nine months ended September 30, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net provided by/(used for) operating activities $ 6 $ (61 ) $ 108 $ 353 $ (30 ) $ 376 Cash flows from investing activities Capital expenditures (81 ) (163 ) (244 ) Intercompany investing activities 150 150 (300 ) — Other 11 5 16 Net cash provided by/(used for) investing activities 150 — 80 (158 ) (300 ) (228 ) Cash flows from financing activities Proceeds from long-term debt 700 679 1,379 Payments of long-term debt (1,100 ) (710 ) (1,810 ) Net change in revolving credit facility and short-term debt 60 48 108 Net change in long-term intercompany balances (156 ) 352 (187 ) (9 ) — Debt issue costs (7 ) (9 ) (16 ) Common stock issued 8 8 Common stock repurchased (8 ) (8 ) Dividends paid (330 ) 330 — Contributions from noncontrolling interests 1 1 Dividends paid to noncontrolling interests (43 ) (43 ) Foreign exchange derivatives related to debt 53 53 Net cash provided by/(used for) financing activities (156 ) 5 (187 ) (320 ) 330 (328 ) Effect of exchange rate changes on cash and cash equivalents (11 ) (11 ) Net change in cash and cash equivalents — (56 ) 1 (136 ) — (191 ) Cash and cash equivalents at January 1 104 613 717 Cash and cash equivalents at September 30 $ — $ 48 $ 1 $ 477 $ — $ 526 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2015 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net provided by/(used for) operating activities $ 24 $ (53 ) $ 76 $ 268 $ 315 Cash flows from investing activities Capital expenditures (30 ) (146 ) (176 ) Purchase of business (1,207 ) (1,207 ) Proceeds from sale of business 33 33 Intercompany investing activities (865 ) 7 9 865 $ (16 ) — Net investment hedge settlements (11 ) (11 ) Other (9 ) (4 ) (13 ) Net cash provided by/(used for) investing activities (865 ) (4 ) (30 ) (459 ) (16 ) (1,374 ) Cash flows from financing activities Proceeds from long-term debt 750 685 1,435 Payments of long-term debt (675 ) (105 ) (780 ) Net change in revolving credit facility and short-term debt 34 34 Net change in long-term intercompany balances 845 (104 ) (46 ) (695 ) — Debt issue costs (10 ) (8 ) (18 ) Common stock issued 5 5 Common stock repurchased (9 ) (9 ) Dividends paid (16 ) 16 — Contributions from noncontrolling interests 3 3 Dividends paid to noncontrolling interests (21 ) (21 ) Foreign exchange derivatives related to debt (38 ) (38 ) Net cash provided by/(used for) financing activities 841 (39 ) (46 ) (161 ) 16 611 Effect of exchange rate changes on cash and cash equivalents (51 ) (51 ) Net change in cash and cash equivalents — (96 ) — (403 ) — (499 ) Cash and cash equivalents at January 1 128 837 965 Cash and cash equivalents at September 30 $ — $ 32 $ — $ 434 $ — $ 466 |