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 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, 2017 and 2016 , • balance sheets as of June 30, 2017 and December 31, 2016 , and • statements of cash flows for the six months ended June 30, 2017 and 2016 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, 2017 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net sales $ 2,161 $ 2,161 Cost of products sold, excluding depreciation and amortization 1,719 1,719 Depreciation and amortization 61 61 Selling and administrative expense $ 2 90 92 Restructuring and other (1 ) 19 18 Income from operations (1 ) 272 271 Loss on early extinguishments of debt 7 7 Net interest expense 26 32 58 Foreign exchange 5 5 Income/(loss) before income taxes (27 ) 228 201 Provision for / (benefit from) income taxes (8 ) 61 53 Equity earnings / (loss) in affiliates $ 128 130 $ (258 ) — Net income 128 111 167 (258 ) 148 Net income attributable to noncontrolling interests (20 ) (20 ) Net income attributable to Crown Holdings $ 128 $ 111 $ 147 $ (258 ) $ 128 Comprehensive income $ 221 $ 115 $ 261 $ (355 ) $ 242 Comprehensive income attributable to noncontrolling interests (21 ) (21 ) Comprehensive income attributable to Crown Holdings $ 221 $ 115 $ 240 $ (355 ) $ 221 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the three months ended June 30, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net sales $ 2,142 $ 2,142 Cost of products sold, excluding depreciation and amortization 1,691 1,691 Depreciation and amortization 65 65 Selling and administrative expense $ 3 91 94 Restructuring and other (3 ) (3 ) Income from operations (3 ) 298 295 Net interest expense 25 31 56 Foreign exchange (11 ) (11 ) Income/(loss) before income taxes (28 ) 278 250 Provision for / (benefit from) income taxes (14 ) 79 65 Equity earnings / (loss) in affiliates $ 169 145 $ (314 ) — Net income 169 131 199 (314 ) 185 Net income attributable to noncontrolling interests (16 ) (16 ) Net income attributable to Crown Holdings $ 169 $ 131 $ 183 $ (314 ) $ 169 Comprehensive income $ 65 $ 41 $ 118 $ (141 ) $ 83 Comprehensive income attributable to noncontrolling interests (18 ) (18 ) Comprehensive income attributable to Crown Holdings $ 65 $ 41 $ 100 $ (141 ) $ 65 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the six months ended June 30, 2017 (in millions) Parent Issuer Non- Eliminations Total Net sales $ 4,062 $ 4,062 Cost of products sold, excluding depreciation and amortization 3,238 3,238 Depreciation and amortization 120 120 Selling and administrative expense $ 4 178 182 Restructuring and other (1 ) 15 14 Income from operations (3 ) 511 508 Loss from early extinguishment of debt 7 7 Net interest expense 46 71 117 Foreign exchange 4 4 Income/(loss) before income taxes (49 ) 429 380 Provision for / (benefit from) income taxes (18 ) 117 99 Equity earnings / (loss) in affiliates $ 235 229 $ (464 ) — Net income 235 198 312 (464 ) 281 Net income attributable to noncontrolling interests (46 ) (46 ) Net income attributable to Crown Holdings $ 235 $ 198 $ 266 $ (464 ) $ 235 Comprehensive income $ 467 $ 245 $ 546 $ (743 ) $ 515 Comprehensive income attributable to noncontrolling interests (48 ) (48 ) Comprehensive income attributable to Crown Holdings $ 467 $ 245 $ 498 $ (743 ) $ 467 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the six months ended June 30, 2016 (in millions) Parent Issuer Non- Eliminations Total Net sales $ 4,035 $ 4,035 Cost of products sold, excluding depreciation and amortization 3,212 3,212 Depreciation and amortization 125 125 Selling and administrative expense $ 5 180 185 Restructuring and other (1 ) (1 ) Income from operations (5 ) 519 514 Loss from early extinguishment of debt 27 27 Net interest expense 52 65 117 Foreign exchange (17 ) (17 ) Income/(loss) before income taxes (57 ) 444 387 Provision for / (benefit from) income taxes (21 ) 124 103 Equity earnings / (loss) in affiliates $ 248 222 $ (470 ) — Net income 248 186 320 (470 ) 284 Net income attributable to noncontrolling interests (36 ) (36 ) Net income attributable to Crown Holdings $ 248 $ 186 $ 284 $ (470 ) $ 248 Comprehensive Income $ 167 $ 186 $ 263 $ (410 ) $ 206 Comprehensive income attributable to noncontrolling interests (39 ) (39 ) Comprehensive income attributable to Crown Holdings $ 167 $ 186 $ 224 $ (410 ) $ 167 CONDENSED COMBINING BALANCE SHEET As of June 30, 2017 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 301 $ 301 Receivables, net 1,005 1,005 Inventories 1,490 1,490 Prepaid expenses and other current assets $ 2 222 224 Total current assets 2 3,018 3,020 Intercompany debt receivables 3,534 $ (3,534 ) — Investments 3,103 $ 3,183 (6,286 ) — Goodwill and intangible assets, net 3,512 3,512 Property, plant and equipment, net 3,020 3,020 Other non-current assets 509 205 714 Total $ 3,105 $ 3,692 $ 13,289 $ (9,820 ) $ 10,266 Liabilities and equity Current liabilities Short-term debt $ 39 $ 39 Current maturities of long-term debt 58 58 Accounts payable and accrued liabilities $ 27 $ 34 2,636 2,697 Total current liabilities 27 34 2,733 2,794 Long-term debt, excluding current maturities 392 4,870 5,262 Long-term intercompany debt 2,456 1,078 $ (3,534 ) — Postretirement and pension liabilities 572 572 Other non-current liabilities 349 354 703 Commitments and contingent liabilities Noncontrolling interests 313 313 Crown Holdings shareholders’ equity/(deficit) 622 1,839 4,447 (6,286 ) 622 Total equity/(deficit) 622 1,839 4,760 (6,286 ) 935 Total $ 3,105 $ 3,692 $ 13,289 $ (9,820 ) $ 10,266 CONDENSED COMBINING BALANCE SHEET As of December 31, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 559 $ 559 Receivables, net 865 865 Inventories 1,245 1,245 Prepaid expenses and other current assets $ 1 171 172 Total current assets 1 — 2,840 2,841 Intercompany debt receivables 3,447 $ (3,447 ) — Investments 2,857 $ 2,915 (5,772 ) — Goodwill and intangible assets, net 3,263 3,263 Property, plant and equipment, net 2,820 2,820 Other non-current assets 447 228 675 Total $ 2,858 $ 3,362 $ 12,598 $ (9,219 ) $ 9,599 Liabilities and equity Current liabilities Short-term debt $ 33 $ 33 Current maturities of long-term debt 161 161 Accounts payable and accrued liabilities $ 23 $ 40 2,639 2,702 Total current liabilities 23 40 2,833 2,896 Long-term debt, excluding current maturities 392 4,325 4,717 Long-term intercompany debt 2,469 978 $ (3,447 ) — Postretirement and pension liabilities 620 620 Other non-current liabilities 358 340 698 Commitments and contingent liabilities Noncontrolling interests 302 302 Crown Holdings shareholders’ equity/(deficit) 366 1,594 4,178 (5,772 ) 366 Total equity/(deficit) 366 1,594 4,480 (5,772 ) 668 Total $ 2,858 $ 3,362 $ 12,598 $ (9,219 ) $ 9,599 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the six months ended June 30, 2017 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net cash provided by/(used for) operating activities $ (13 ) $ (41 ) $ 94 $ (8 ) $ 32 Cash flows from investing activities Capital expenditures (200 ) (200 ) Proceeds from sale of property, plant and equipment 5 5 Intercompany investing activities 235 (235 ) — Other 5 5 Net cash provided by/(used for) investing activities 235 (190 ) (235 ) (190 ) Cash flows from financing activities Proceeds from long-term debt 1,053 1,053 Payments of long-term debt (1,103 ) (1,103 ) Net change in revolving credit facility and short-term debt 249 249 Net change in long-term intercompany balances 47 41 (88 ) — Debt issue costs (15 ) (15 ) Common stock issued 8 8 Common stock repurchased (277 ) (277 ) Dividends paid (243 ) 243 — Dividend paid to noncontrolling interests (37 ) (37 ) Foreign exchange derivatives related to debt 11 11 Net cash provided by/(used for) financing activities (222 ) 41 (173 ) 243 (111 ) Effect of exchange rate changes on cash and cash equivalents 11 11 Net change in cash and cash equivalents — — (258 ) — (258 ) Cash and cash equivalents at January 1 559 559 Cash and cash equivalents at June 30 $ — $ — $ 301 $ — $ 301 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the six months ended June 30, 2016 (in millions) Parent Issuer Non- Guarantors Eliminations Total Company Net cash provided by/(used for) operating activities $ (4 ) $ (52 ) $ 124 $ (5 ) $ 63 Cash flows from investing activities Capital expenditures (143 ) (143 ) Proceeds from sale of property, plant and equipment 5 5 Intercompany investing activities 150 (150 ) — Other 13 13 Net cash provided by/(used for) investing activities 150 (125 ) (150 ) (125 ) Cash flows from financing activities Proceeds from long-term debt 304 304 Payments of long-term debt (725 ) (725 ) Net change in revolving credit facility and short-term debt 138 138 Net change in long-term intercompany balances (143 ) 52 91 — Debt issue costs (2 ) (2 ) Common stock issued 5 5 Common stock repurchased (8 ) (8 ) Dividends paid (155 ) 155 — Contribution from noncontrolling interests 1 1 Dividend paid to noncontrolling interests (26 ) (26 ) Foreign exchange derivatives related to debt 32 32 Net cash provided by/(used for) financing activities (146 ) 52 (342 ) 155 (281 ) Effect of exchange rate changes on cash and cash equivalents (4 ) (4 ) Net change in cash and cash equivalents — — (347 ) — (347 ) Cash and cash equivalents at January 1 717 717 Cash and cash equivalents at June 30 $ — $ — $ 370 $ — $ 370 Crown Americas, LLC, Crown Americas Capital Corp. IV and Crown Americas Capital Corp. V (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 six months ended June 30, 2017 and 2016 , • balance sheets as of June 30, 2017 and December 31, 2016 , and • statements of cash flows for the six months ended June 30, 2017 and 2016 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, 2017 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net sales $ 505 $ 1,656 $ 2,161 Cost of products sold, excluding depreciation and amortization 413 1,306 1,719 Depreciation and amortization 10 51 61 Selling and administrative expense $ 3 35 54 92 Restructuring and other 1 17 18 Income from operations (3 ) 46 228 271 Loss from early extinguishments of debt 6 1 7 Net interest expense 16 23 19 58 Technology royalty (9 ) 9 — Foreign exchange 45 (1 ) 6 $ (45 ) 5 Income/(loss) before income taxes (70 ) 33 193 45 201 Provision for / (benefit from) income taxes (27 ) 12 53 15 53 Equity earnings / (loss) in affiliates $ 128 51 90 (269 ) — Net income 128 8 111 140 (239 ) 148 Net income attributable to noncontrolling interests (20 ) (20 ) Net income attributable to Crown Holdings $ 128 $ 8 $ 111 $ 120 $ (239 ) $ 128 Comprehensive income $ 221 $ 11 $ 115 $ 271 $ (376 ) $ 242 Comprehensive income attributable to noncontrolling interests (21 ) (21 ) Comprehensive income attributable to Crown Holdings $ 221 $ 11 $ 115 $ 250 $ (376 ) $ 221 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the three months ended June 30, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net sales $ 508 $ 1,634 $ 2,142 Cost of products sold, excluding depreciation and amortization 407 1,284 1,691 Depreciation and amortization 8 57 65 Selling and administrative expense $ 2 33 59 94 Restructuring and other (5 ) 2 (3 ) Income from operations 3 60 232 295 Loss from early extinguishment of debt — Net interest expense 15 21 20 56 Technology royalty (10 ) 10 — Foreign exchange (17 ) (11 ) $ 17 (11 ) Income/(loss) before income taxes 5 49 213 (17 ) 250 Provision for / (benefit from) income taxes 2 15 54 (6 ) 65 Equity earnings / (loss) in affiliates $ 169 33 97 (299 ) — Net income 169 36 131 159 (310 ) 185 Net income attributable to noncontrolling interests (16 ) (16 ) Net income attributable to Crown Holdings $ 169 $ 36 $ 131 $ 143 $ (310 ) $ 169 Comprehensive income $ 65 $ 39 $ 41 $ 37 $ (99 ) $ 83 Comprehensive income attributable to noncontrolling interests (18 ) (18 ) Comprehensive income attributable to Crown Holdings $ 65 $ 39 $ 41 $ 19 $ (99 ) $ 65 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the six months ended June 30, 2017 (in millions) Parent Issuer Guarantors Non- Eliminations Total Net sales $ 950 $ 3,112 4,062 Cost of products sold, excluding depreciation and amortization 774 2,464 3,238 Depreciation and amortization 20 100 120 Selling and administrative expense $ 5 68 109 182 Restructuring and other 2 12 14 Income from operations (5 ) 86 427 508 Loss from early extinguishment of debt 6 1 7 Net interest expense 33 44 40 117 Technology royalty (18 ) 18 — Foreign exchange 55 (1 ) 5 $ (55 ) 4 Income/(loss) before income taxes (99 ) 61 363 55 380 Provision for / (benefit from) income taxes (38 ) 20 98 19 99 Equity earnings / (loss) in affiliates $ 235 100 157 (492 ) — Net income 235 39 198 265 (456 ) 281 Net income attributable to noncontrolling interests (46 ) (46 ) Net income attributable to Crown Holdings 235 39 198 219 (456 ) 235 Comprehensive Income $ 467 $ 46 $ 245 $ 542 $ (785 ) $ 515 Comprehensive income attributable to noncontrolling interests (48 ) (48 ) Comprehensive income attributable to Crown Holdings $ 467 $ 46 $ 245 $ 494 $ (785 ) $ 467 CONDENSED COMBINING STATEMENT OF COMPREHENSIVE INCOME For the six months ended June 30, 2016 (in millions) Parent Issuer Guarantors Non- Eliminations Total Net sales $ 955 $ 3,080 $ 4,035 Cost of products sold, excluding depreciation and amortization 770 2,442 3,212 Depreciation and amortization 16 109 125 Selling and administrative expense $ 5 68 112 185 Restructuring and other (5 ) 4 (1 ) Income from operations — 97 417 514 Loss from early extinguishment of debt 27 27 Net interest expense 35 43 39 117 Technology royalty (19 ) 19 — Foreign exchange 15 (17 ) $ (15 ) (17 ) Income/(loss) before income taxes (77 ) 73 376 15 387 Provision for / (benefit from) income taxes (29 ) 29 98 5 103 Equity earnings / (loss) in affiliates $ 248 97 142 (487 ) — Net income 248 49 186 278 (477 ) 284 Net income attributable to noncontrolling interests (36 ) (36 ) Net income attributable to Crown Holdings $ 248 $ 49 $ 186 $ 242 $ (477 ) $ 248 Comprehensive income $ 167 $ 55 $ 186 $ 209 $ (411 ) $ 206 Comprehensive income attributable to noncontrolling interests (39 ) (39 ) Comprehensive income attirbutable to Crown Holdings $ 167 $ 55 $ 186 $ 170 $ (411 ) $ 167 CONDENSED COMBINING BALANCE SHEET As of June 30, 2017 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 38 $ 2 $ 261 $ 301 Receivables, net 22 983 1,005 Intercompany receivables 36 15 $ (51 ) — Inventories 354 1,136 1,490 Prepaid expenses and other current assets $ 2 1 15 206 224 Total current assets 2 39 429 2,601 (51 ) 3,020 Intercompany debt receivables 2,796 3,293 782 (6,871 ) — Investments 3,103 2,405 1,143 (6,651 ) — Goodwill and intangible assets, net 467 3,045 3,512 Property, plant and equipment, net 1 528 2,491 3,020 Other non-current assets 11 519 184 714 Total $ 3,105 $ 5,252 $ 6,379 $ 9,103 $ (13,573 ) $ 10,266 Liabilities and equity Current liabilities Short-term debt $ 3 $ 36 $ 39 Current maturities of long-term debt $ 18 40 58 Accounts payable and accrued liabilities $ 27 30 578 2,062 2,697 Intercompany payables 15 36 $ (51 ) — Total current liabilities 27 48 596 2,174 (51 ) 2,794 Long-term debt, excluding current maturities 2,337 414 2,511 5,262 Long-term intercompany debt 2,456 1,443 2,777 195 (6,871 ) — Postretirement and pension liabilities 394 178 572 Other non-current liabilities 359 344 703 Commitments and contingent liabilities Noncontrolling interests 313 313 Crown Holdings shareholders’ equity/(deficit) 622 1,424 1,839 3,388 (6,651 ) 622 Total equity/(deficit) 622 1,424 1,839 3,701 (6,651 ) 935 Total $ 3,105 $ 5,252 $ 6,379 $ 9,103 $ (13,573 ) $ 10,266 CONDENSED COMBINING BALANCE SHEET As of December 31, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Assets Current assets Cash and cash equivalents $ 83 $ 476 $ 559 Receivables, net 3 $ 20 842 865 Intercompany receivables 33 6 $ (39 ) — Inventories 313 932 1,245 Prepaid expenses and other current assets $ 1 2 13 156 172 Total current assets 1 88 379 2,412 (39 ) 2,841 Intercompany debt receivables 2,703 3,234 690 (6,627 ) — Investments 2,857 2,319 954 (6,130 ) — Goodwill and intangible assets, net 469 2,794 3,263 Property, plant and equipment, net 1 496 2,323 2,820 Other non-current assets 3 464 208 675 Total $ 2,858 $ 5,114 $ 5,996 $ 8,427 $ (12,796 ) $ 9,599 Liabilities and equity Current liabilities Short-term debt $ 33 $ 33 Current maturities of long-term debt $ 118 43 161 Accounts payable and accrued liabilities $ 23 32 $ 577 2,070 2,702 Intercompany payables 6 33 $ (39 ) — Total current liabilities 23 150 583 2,179 (39 ) 2,896 Long-term debt, excluding current maturities 2,258 392 2,067 4,717 Long-term intercompany debt 2,469 1,328 2,624 206 (6,627 ) — Postretirement and pension liabilities 422 198 620 Other non-current liabilities 381 317 698 Commitments and contingent liabilities Noncontrolling interests 302 302 Crown Holdings shareholders’ equity/(deficit) 366 1,378 1,594 3,158 (6,130 ) 366 Total equity/(deficit) 366 1,378 1,594 3,460 (6,130 ) 668 Total $ 2,858 $ 5,114 $ 5,996 $ 8,427 $ (12,796 ) $ 9,599 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the six months ended June 30, 2017 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net provided by/(used for) operating activities $ (13 ) $ (28 ) $ (23 ) $ 124 $ (28 ) $ 32 Cash flows from investing activities Capital expenditures (78 ) (122 ) (200 ) Proceeds from sale of property, plant and equipment 1 4 5 Intercompany investing activities 235 (235 ) — Other 5 5 Net cash provided by/(used for) investing activities 235 — (77 ) (113 ) (235 ) (190 ) Cash flows from financing activities Proceeds from long-term debt 750 8 295 1,053 Payments of long-term debt (1,010 ) (93 ) (1,103 ) Net change in revolving credit facility and short-term debt 235 14 249 Net change in long-term intercompany balances 47 22 94 (163 ) — Debt issue costs (14 ) (1 ) (15 ) Common stock issued 8 8 Common stock repurchased (277 ) (277 ) Dividends paid (263 ) 263 — Dividends paid to noncontrolling interests (37 ) (37 ) Foreign exchange derivatives related to debt 11 11 Net cash provided by/(used for) financing activities (222 ) (17 ) 102 (237 ) 263 (111 ) Effect of exchange rate changes on cash and cash equivalents 11 11 Net change in cash and cash equivalents — (45 ) 2 (215 ) — (258 ) Cash and cash equivalents at January 1 83 476 559 Cash and cash equivalents at June 30 $ — $ 38 $ 2 $ 261 $ — $ 301 CONDENSED COMBINING STATEMENT OF CASH FLOWS For the six months ended June 30, 2016 (in millions) Parent Issuer Guarantors Non- Guarantors Eliminations Total Company Net provided by/(used for) operating activities $ (4 ) $ (49 ) $ 92 $ 38 $ (14 ) $ 63 Cash flows from investing activities Capital expenditures (50 ) (93 ) (143 ) Proceeds from sale of property, plant and equipment 5 5 Intercompany investing activities 150 150 (300 ) — Other 10 3 13 Net cash provided by/(used for) investing activities 150 — 110 (85 ) (300 ) (125 ) Cash flows from financing activities Proceeds from long-term debt 300 4 304 Payments of long-term debt (700 ) (25 ) (725 ) Net change in revolving credit facility and short-term debt 75 63 138 Net change in long-term intercompany balances (143 ) 341 (202 ) 4 — Debt issue costs (2 ) (2 ) Common stock issued 5 5 Common stock repurchased (8 ) (8 ) Dividends paid (314 ) 314 — Dividends paid to noncontrolling interests (26 ) (26 ) Contributions from noncontrolling interests 1 1 Foreign exchange derivatives related to debt 32 32 Net cash provided by/(used for) financing activities (146 ) 14 (202 ) (261 ) 314 (281 ) Effect of exchange rate changes on cash and cash equivalents (4 ) (4 ) Net change in cash and cash equivalents — (35 ) — (312 ) — (347 ) Cash and cash equivalents at January 1 104 613 717 Cash and cash equivalents at June 30 $ — $ 69 $ — $ 301 $ — $ 370 |