Exhibit 99.2
Owens-Illinois, Inc.
Unaudited Pro Forma Reconciliation of Earnings (Loss) from Continuing Operations Attributable to the Company to Adjusted Net Earnings
The information presented below regarding adjusted net earnings, giving effect to the change in the method for accounting for U.S. inventories from LIFO to average costs as if the change had occurred on January 1, 2010, relates to earnings attributable to the Company exclusive of items management considers not representative of ongoing operations and does not conform to U.S. generally accepted accounting principles (GAAP). It should not be construed as an alternative to the reported results determined in accordance with GAAP. Management has included this non-GAAP information to assist in understanding the comparability of results of ongoing operations. Management uses this non-GAAP information principally for internal reporting, forecasting, budgeting and calculating bonus payments. Management believes that the non-GAAP presentation allows the board of directors, management, investors and analysts to better understand the Company’s financial performance in relationship to continuing operating results.
Owens-Illinois, Inc.
Unaudited Pro Forma Reconciliation of Earnings (Loss) from Continuing Operations Attributable to the Company to Adjusted Net Earnings for the Three Months and Year Ended December 31, 2011
| | Three months ended December 31, 2011 | |
| | As Reported | | Effect of Change in
Inventory Method | | Pro Forma Adjusted | |
Dollars in millions, except per share amounts | | Earnings | | EPS | | Earnings | | EPS | | Earnings | | EPS | |
Earnings (loss) from continuing operations attributable to the Company | | $ | (774 | ) | $ | (4.71 | ) | $ | — | | $ | — | | $ | (774 | ) | $ | (4.71 | ) |
| | | | | | | | | | | | | |
Items that management considers not representative of ongoing operations consistent with Segment Operating Profit | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Charge to adjust the carrying value of the Asia Pacific region’s goodwill | | 640 | | 3.86 | | | | | | 640 | | 3.86 | |
Charge for asbestos-related costs | | 165 | | 1.00 | | | | | | 165 | | 1.00 | |
Charges for restructuring and asset impairment | | 63 | | 0.38 | | | | | | 63 | | 0.38 | |
Net tax-related benefit | | (15 | ) | (0.09 | ) | | | | | (15 | ) | (0.09 | ) |
Reconciling item for dilution effect | | | | 0.04 | | | | | | | | 0.04 | |
| | | | | | | | | | | | | |
Adjusted net earnings | | $ | 79 | | $ | 0.48 | | $ | — | | $ | — | | $ | 79 | | $ | 0.48 | |
| | Year ended December 31, 2011 | |
| | As Reported | | Effect of Change in
Inventory Method | | Pro Forma Adjusted | |
Dollars in millions, except per share amounts | | Earnings | | EPS | | Earnings | | EPS | | Earnings | | EPS | |
Earnings (loss) from continuing operations attributable to the Company | | $ | (511 | ) | $ | (3.12 | ) | $ | 10 | | $ | 0.06 | | $ | (501 | ) | $ | (3.06 | ) |
| | | | | | | | | | | | | |
Items that management considers not representative of ongoing operations consistent with Segment Operating Profit | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Charge to adjust the carrying value of the Asia Pacific region’s goodwill | | 640 | | 3.86 | | | | | | 640 | | 3.86 | |
Charge for asbestos-related costs | | 165 | | 1.00 | | | | | | 165 | | 1.00 | |
Charges for restructuring and asset impairment | | 91 | | 0.54 | | | | | | 91 | | 0.54 | |
Charges for note repurchase premiums and write-off of finance fees | | 24 | | 0.15 | | | | | | 24 | | 0.15 | |
Net tax-related benefit | | (15 | ) | (0.09 | ) | | | | | (15 | ) | (0.09 | ) |
Reconciling item for dilution effect | | | | 0.03 | | | | | | | | 0.03 | |
| | | | | | | | | | | | | |
Adjusted net earnings | | $ | 394 | | $ | 2.37 | | $ | 10 | | $ | 0.06 | | $ | 404 | | $ | 2.43 | |
Owens-Illinois, Inc.
Unaudited Pro Forma Reconciliation of Earnings from Continuing Operations Attributable to the Company to Adjusted Net Earnings for the Three and Nine Months Ended September 30, 2011
| | Three months ended September 30, 2011 | |
| | As Reported | | Effect of Change in
Inventory Method | | Pro Forma Adjusted | |
Dollars in millions, except per share amounts | | Earnings | | EPS | | Earnings | | EPS | | Earnings | | EPS | |
Earnings from continuing operations attributable to the Company | | $ | 119 | | $ | 0.72 | | $ | — | | $ | — | | $ | 119 | | $ | 0.72 | |
| | | | | | | | | | | | | |
Items that management considers not representative of ongoing operations consistent with Segment Operating Profit | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Charges for restructuring and asset impairment | | 20 | | 0.12 | | | | | | 20 | | 0.12 | |
| | | | | | | | | | | | | |
Adjusted net earnings | | $ | 139 | | $ | 0.84 | | $ | — | | $ | — | | $ | 139 | | $ | 0.84 | |
| | Nine months ended September 30, 2011 | |
| | As Reported | | Effect of Change in
Inventory Method | | Pro Forma Adjusted | |
Dollars in millions, except per share amounts | | Earnings | | EPS | | Earnings | | EPS | | Earnings | | EPS | |
Earnings from continuing operations attributable to the Company | | $ | 263 | | $ | 1.58 | | $ | 10 | | $ | 0.06 | | $ | 273 | | $ | 1.64 | |
| | | | | | | | | | | | | |
Items that management considers not representative of ongoing operations consistent with Segment Operating Profit | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Charges for restructuring and asset impairment | | 28 | | 0.17 | | | | | | 28 | | 0.17 | |
Charges for note repurchase premiums and write-off of finance fees | | 24 | | 0.15 | | | | | | 24 | | 0.15 | |
| | | | | | | | | | | | | |
Adjusted net earnings | | $ | 315 | | $ | 1.90 | | $ | 10 | | $ | 0.06 | | $ | 325 | | $ | 1.96 | |
Owens-Illinois, Inc.
Unaudited Pro Forma Reconciliation of Earnings from Continuing Operations Attributable to the Company to Adjusted Net Earnings for the Three and Six Months Ended June 30, 2011
| | Three months ended June 30, 2011 | |
| | As Reported | | Effect of Change in
Inventory Method | | Pro Forma Adjusted | |
Dollars in millions, except per share amounts | | Earnings | | EPS | | Earnings | | EPS | | Earnings | | EPS | |
Earnings from continuing operations attributable to the Company | | $ | 71 | | $ | 0.42 | | $ | — | | $ | — | | $ | 71 | | $ | 0.42 | |
| | | | | | | | | | | | | |
Items that management considers not representative of ongoing operations consistent with Segment Operating Profit | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Charges for restructuring and asset impairment | | 3 | | 0.02 | | | | | | 3 | | 0.02 | |
Charges for note repurchase premiums and write-off of finance fees | | 24 | | 0.15 | | | | | | 24 | | 0.15 | |
| | | | | | | | | | | | | |
Adjusted net earnings | | $ | 98 | | $ | 0.59 | | $ | — | | $ | — | | $ | 98 | | $ | 0.59 | |
| | Six months ended June 30, 2011 | |
| | As Reported | | Effect of Change in
Inventory Method | | Pro Forma Adjusted | |
Dollars in millions, except per share amounts | | Earnings | | EPS | | Earnings | | EPS | | Earnings | | EPS | |
Earnings from continuing operations attributable to the Company | | $ | 144 | | $ | 0.86 | | $ | 10 | | $ | 0.06 | | $ | 154 | | $ | 0.92 | |
| | | | | | | | | | | | | |
Items that management considers not representative of ongoing operations consistent with Segment Operating Profit | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Charges for restructuring and asset impairment | | 8 | | 0.05 | | | | | | 8 | | 0.05 | |
Charges for note repurchase premiums and write-off of finance fees | | 24 | | 0.15 | | | | | | 24 | | 0.15 | |
| | | | | | | | | | | | | |
Adjusted net earnings | | $ | 176 | | $ | 1.06 | | $ | 10 | | $ | 0.06 | | $ | 186 | | $ | 1.12 | |
Owens-Illinois, Inc.
Unaudited Pro Forma Reconciliation of Earnings from Continuing Operations Attributable to the Company to Adjusted Net Earnings for the Three Months Ended March 31, 2011
| | Three months ended March 31, 2011 | |
| | As Reported | | Effect of Change in
Inventory Method | | Pro Forma Adjusted | |
Dollars in millions, except per share amounts | | Earnings | | EPS | | Earnings | | EPS | | Earnings | | EPS | |
Earnings from continuing operations attributable to the Company | | $ | 73 | | $ | 0.44 | | $ | 10 | | $ | 0.06 | | $ | 83 | | $ | 0.50 | |
| | | | | | | | | | | | | |
Items that management considers not representative of ongoing operations consistent with Segment Operating Profit | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Charges for restructuring and asset impairment | | 6 | | 0.03 | | | | | | 6 | | 0.03 | |
| | | | | | | | | | | | | |
Adjusted net earnings | | $ | 79 | | $ | 0.47 | | $ | 10 | | $ | 0.06 | | $ | 89 | | $ | 0.53 | |
Owens-Illinois, Inc.
Unaudited Pro Forma Reconciliation of Earnings from Continuing Operations Attributable to the Company to Adjusted Net Earnings for the Year Ended December 31, 2010
| | Year ended December 31, 2010 | |
| | As Reported | | Effect of Change in
Inventory Method | | Pro Forma Adjusted | |
Dollars in millions, except per share amounts | | Earnings | | EPS | | Earnings | | EPS | | Earnings | | EPS | |
Earnings from continuing operations attributable to the Company | | $ | 258 | | $ | 1.55 | | $ | 2 | | $ | 0.01 | | $ | 260 | | $ | 1.56 | |
| | | | | | | | | | | | | |
Items that management considers not representative of ongoing operations consistent with Segment Operating Profit | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Charge for asbestos-related costs | | 170 | | 1.02 | | | | | | 170 | | 1.02 | |
Acquisition-related fair value inventory adjustments and restructuring, transaction and financing costs | | 27 | | 0.16 | | | | | | 27 | | 0.16 | |
Charges for restructuring and asset impairment | | 11 | | 0.07 | | | | | | 11 | | 0.07 | |
Net benefit related to changes in deferred tax valuation allowance | | (24 | ) | (0.15 | ) | | | | | (24 | ) | (0.15 | ) |
Non-cash tax benefit transferred from other comprehensive income (equity) | | (8 | ) | (0.05 | ) | | | | | (8 | ) | (0.05 | ) |
| | | | | | | | | | | | | |
Adjusted net earnings | | $ | 434 | | $ | 2.60 | | $ | 2 | | $ | 0.01 | | $ | 436 | | $ | 2.61 | |
