Financial Information for Subsidiary Guarantors and Non-Guarantors | 9 Months Ended |
Sep. 30, 2013 |
Financial Information for Subsidiary Guarantors and Non-Guarantors | ' |
Financial Information for Subsidiary Guarantors and Non-Guarantors | ' |
16. Financial Information for Subsidiary Guarantors and Non-Guarantors |
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The following presents condensed consolidating financial information for the Company, segregating: (1) Owens-Illinois, Inc., the issuer of senior debentures (the “Parent”); (2) the two subsidiaries which have guaranteed the senior debentures on a subordinated basis (the “Guarantor Subsidiaries”); and (3) all other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned direct and indirect subsidiaries of the Company and their guarantees are full, unconditional and joint and several. They have no operations and function only as intermediate holding companies. |
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Certain reclassifications have been made to conform all of the financial information to the financial presentation on a consolidated basis. The principal eliminations relate to investments in subsidiaries and intercompany balances and transactions. |
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| | September 30, 2013 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Balance Sheet | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Current assets: | | | | | | | | | | | |
Accounts receivable | | $ | — | | $ | — | | $ | 1,172 | | $ | — | | $ | 1,172 | |
Inventories | | | | | | 1,178 | | | | 1,178 | |
Other current assets | | | | | | 322 | | | | 322 | |
| | | | | | | | | | | |
Total current assets | | — | | — | | 2,672 | | — | | 2,672 | |
Investments in and advances to subsidiaries | | 1,813 | | 1,563 | | | | (3,376 | ) | — | |
| | | | | | | | | | | |
Goodwill | | | | | | 2,059 | | | | 2,059 | |
Other non-current assets | | | | | | 1,084 | | | | 1,084 | |
| | | | | | | | | | | |
Total other assets | | 1,813 | | 1,563 | | 3,143 | | (3,376 | ) | 3,143 | |
| | | | | | | | | | | |
Property, plant and equipment, net | | | | | | 2,657 | | | | 2,657 | |
| | | | | | | | | | | |
Total assets | | $ | 1,813 | | $ | 1,563 | | $ | 8,472 | | $ | (3,376 | ) | $ | 8,472 | |
| | | | | | | | | | | |
Current liabilities : | | | | | | | | | | | |
Accounts payable and accrued liabilities | | $ | — | | $ | — | | $ | 1,566 | | $ | — | | $ | 1,566 | |
Current portion of asbestos liability | | 155 | | | | | | | | 155 | |
Short-term loans and long-term debt due within one year | | | | | | 366 | | | | 366 | |
| | | | | | | | | | | |
Total current liabilities | | 155 | | — | | 1,932 | | — | | 2,087 | |
| | | | | | | | | | | |
Long-term debt | | 250 | | | | 3,298 | | (250 | ) | 3,298 | |
Asbestos-related liabilities | | 198 | | | | | | | | 198 | |
Other non-current liabilities | | | | | | 1,512 | | | | 1,512 | |
Total share owners’ equity of the Company | | 1,210 | | 1,563 | | 1,563 | | (3,126 | ) | 1,210 | |
Noncontrolling interests | | | | | | 167 | | | | 167 | |
| | | | | | | | | | | |
Total liabilities and share owners’ equity | | $ | 1,813 | | $ | 1,563 | | $ | 8,472 | | $ | (3,376 | ) | $ | 8,472 | |
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| | December 31, 2012 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Balance Sheet | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Current assets: | | | | | | | | | | | |
Accounts receivable | | $ | — | | $ | — | | $ | 968 | | $ | — | | $ | 968 | |
Inventories | | | | | | 1,139 | | | | 1,139 | |
Other current assets | | | | | | 541 | | | | 541 | |
| | | | | | | | | | | |
Total current assets | | — | | — | | 2,648 | | — | | 2,648 | |
Investments in and advances to subsidiaries | | 1,592 | | 1,342 | | | | (2,934 | ) | — | |
| | | | | | | | | | | |
Goodwill | | | | | | 2,079 | | | | 2,079 | |
Other non-current assets | | | | | | 1,102 | | | | 1,102 | |
| | | | | | | | | | | |
Total other assets | | 1,592 | | 1,342 | | 3,181 | | (2,934 | ) | 3,181 | |
| | | | | | | | | | | |
Property, plant and equipment, net | | | | | | 2,769 | | | | 2,769 | |
| | | | | | | | | | | |
Total assets | | $ | 1,592 | | $ | 1,342 | | $ | 8,598 | | $ | (2,934 | ) | $ | 8,598 | |
| | | | | | | | | | | |
Current liabilities : | | | | | | | | | | | |
Accounts payable and accrued liabilities | | $ | — | | $ | — | | $ | 1,688 | | $ | — | | $ | 1,688 | |
Current portion of asbestos liability | | 155 | | | | | | | | 155 | |
Short-term loans and long-term debt due within one year | | | | | | 319 | | | | 319 | |
| | | | | | | | | | | |
Total current liabilities | | 155 | | — | | 2,007 | | — | | 2,162 | |
| | | | | | | | | | | |
Long-term debt | | 250 | | | | 3,454 | | (250 | ) | 3,454 | |
Asbestos-related liabilities | | 306 | | | | | | | | 306 | |
Other non-current liabilities | | | | | | 1,621 | | | | 1,621 | |
Total share owners’ equity of the Company | | 881 | | 1,342 | | 1,342 | | (2,684 | ) | 881 | |
Noncontrolling interests | | | | | | 174 | | | | 174 | |
| | | | | | | | | | | |
Total liabilities and share owners’ equity | | $ | 1,592 | | $ | 1,342 | | $ | 8,598 | | $ | (2,934 | ) | $ | 8,598 | |
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| | September 30, 2012 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Balance Sheet | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Current assets: | | | | | | | | | | | |
Accounts receivable | | $ | — | | $ | — | | $ | 1,133 | | $ | — | | $ | 1,133 | |
Inventories | | | | | | 1,228 | | | | 1,228 | |
Other current assets | | | | | | 427 | | | | 427 | |
| | | | | | | | | | | |
Total current assets | | — | | — | | 2,788 | | — | | 2,788 | |
Investments in and advances to subsidiaries | | 1,921 | | 1,671 | | | | (3,592 | ) | — | |
| | | | | | | | | | | |
Goodwill | | | | | | 2,065 | | | | 2,065 | |
Other non-current assets | | | | | | 1,283 | | | | 1,283 | |
| | | | | | | | | | | |
Total other assets | | 1,921 | | 1,671 | | 3,348 | | (3,592 | ) | 3,348 | |
| | | | | | | | | | | |
Property, plant and equipment, net | | | | | | 2,735 | | | | 2,735 | |
| | | | | | | | | | | |
Total assets | | $ | 1,921 | | $ | 1,671 | | $ | 8,871 | | $ | (3,592 | ) | $ | 8,871 | |
| | | | | | | | | | | |
Current liabilities : | | | | | | | | | | | |
Accounts payable and accrued liabilities | | $ | — | | $ | — | | $ | 1,517 | | $ | — | | $ | 1,517 | |
Current portion of asbestos liability | | 165 | | | | | | | | 165 | |
Short-term loans and long-term debt due within one year | | | | | | 356 | | | | 356 | |
| | | | | | | | | | | |
Total current liabilities | | 165 | | — | | 1,873 | | — | | 2,038 | |
| | | | | | | | | | | |
Long-term debt | | 250 | | | | 3,537 | | (250 | ) | 3,537 | |
Asbestos-related liabilities | | 220 | | | | | | | | 220 | |
Other non-current liabilities | | | | | | 1,640 | | | | 1,640 | |
Total share owners’ equity of the Company | | 1,286 | | 1,671 | | 1,671 | | (3,342 | ) | 1,286 | |
Noncontrolling interests | | | | | | 150 | | | | 150 | |
| | | | | | | | | | | |
Total liabilities and share owners’ equity | | $ | 1,921 | | $ | 1,671 | | $ | 8,871 | | $ | (3,592 | ) | $ | 8,871 | |
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| | Three months ended September 30, 2013 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Results of Operations | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Net sales | | $ | — | | $ | — | | $ | 1,784 | | $ | — | | $ | 1,784 | |
Manufacturing, shipping and delivery | | | | | | (1,432 | ) | | | (1,432 | ) |
| | | | | | | | | | | |
Gross profit | | — | | — | | 352 | | — | | 352 | |
| | | | | | | | | | | |
Research, engineering, selling, administrative, and other | | | | | | (148 | ) | | | (148 | ) |
Net intercompany interest | | 5 | | | | (5 | ) | | | — | |
Interest expense | | (5 | ) | | | (51 | ) | | | (56 | ) |
Interest income | | | | | | 2 | | | | 2 | |
Equity earnings from subsidiaries | | 130 | | 130 | | | | (260 | ) | — | |
Other equity earnings | | | | | | 16 | | | | 16 | |
Other income | | | | | | 12 | | | | 12 | |
| | | | | | | | | | | |
Earnings before income taxes | | 130 | | 130 | | 178 | | (260 | ) | 178 | |
Provision for income taxes | | | | | | (40 | ) | | | (40 | ) |
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Earnings from continuing operations | | 130 | | 130 | | 138 | | (260 | ) | 138 | |
Loss from discontinued operations | | | | | | (2 | ) | | | (2 | ) |
| | | | | | | | | | | |
Net earnings | | 130 | | 130 | | 136 | | (260 | ) | 136 | |
Net earnings attributable to noncontrolling interests | | | | | | (6 | ) | | | (6 | ) |
| | | | | | | | | | | |
Net earnings attributable to the Company | | $ | 130 | | $ | 130 | | $ | 130 | | $ | (260 | ) | $ | 130 | |
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| | Three months ended September 30, 2013 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Comprehensive Income | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Net earnings | | $ | 130 | | $ | 130 | | $ | 136 | | $ | (260 | ) | $ | 136 | |
Other comprehensive income (loss) | | 39 | | 39 | | 12 | | (51 | ) | 39 | |
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Total comprehensive income (loss) | | 169 | | 169 | | 148 | | (311 | ) | 175 | |
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Comprehensive income attributable to noncontrolling interests | | | | | | (6 | ) | | | (6 | ) |
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Comprehensive income attributable to the Company | | $ | 169 | | $ | 169 | | $ | 142 | | $ | (311 | ) | $ | 169 | |
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| | Three months ended September 30, 2012 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Results of Operations | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Net sales | | $ | — | | $ | — | | $ | 1,747 | | $ | — | | $ | 1,747 | |
Manufacturing, shipping and delivery | | | | | | (1,405 | ) | | | (1,405 | ) |
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Gross profit | | — | | — | | 342 | | — | | 342 | |
| | | | | | | | | | | |
Research, engineering, selling, administrative, and other | | | | | | (180 | ) | | | (180 | ) |
Net intercompany interest | | 5 | | | | (5 | ) | | | — | |
Interest expense | | (5 | ) | | | (56 | ) | | | (61 | ) |
Interest income | | | | | | 2 | | | | 2 | |
Equity earnings from subsidiaries | | 90 | | 90 | | | | (180 | ) | — | |
Other equity earnings | | | | | | 16 | | | | 16 | |
Other income | | | | | | 8 | | | | 8 | |
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Earnings from continuing operations before income taxes | | 90 | | 90 | | 127 | | (180 | ) | 127 | |
Provision for income taxes | | | | | | (28 | ) | | | (28 | ) |
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Earnings from continuing operations | | 90 | | 90 | | 99 | | (180 | ) | 99 | |
Loss from discontinued operations | | | | | | (2 | ) | | | (2 | ) |
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Net earnings | | 90 | | 90 | | 97 | | (180 | ) | 97 | |
Net earnings attributable to noncontrolling interests | | | | | | (7 | ) | | | (7 | ) |
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Net earnings attributable to the Company | | $ | 90 | | $ | 90 | | $ | 90 | | $ | (180 | ) | $ | 90 | |
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| | Three months ended September 30, 2012 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Comprehensive Income | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Net earnings | | $ | 90 | | $ | 90 | | $ | 97 | | $ | (180 | ) | $ | 97 | |
Other comprehensive income (loss) | | 103 | | 103 | | 81 | | (182 | ) | 105 | |
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Total comprehensive income (loss) | | 193 | | 193 | | 178 | | (362 | ) | 202 | |
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Comprehensive income attributable to noncontrolling interests | | | | | | (9 | ) | | | (9 | ) |
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Comprehensive income attributable to the Company | | $ | 193 | | $ | 193 | | $ | 169 | | $ | (362 | ) | $ | 193 | |
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| | Nine months ended September 30, 2013 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Results of Operations | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Net sales | | $ | — | | $ | — | | $ | 5,206 | | $ | — | | $ | 5,206 | |
Manufacturing, shipping and delivery | | | | | | (4,166 | ) | | | (4,166 | ) |
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Gross profit | | — | | — | | 1,040 | | — | | 1,040 | |
| | | | | | | | | | | |
Research, engineering, selling, administrative, and other | | | | | | (465 | ) | | | (465 | ) |
Net intercompany interest | | 15 | | | | (15 | ) | | | — | |
Interest expense | | (15 | ) | | | (169 | ) | | | (184 | ) |
Interest income | | | | | | 6 | | | | 6 | |
Equity earnings from subsidiaries | | 331 | | 331 | | | | (662 | ) | — | |
Other equity earnings | | | | | | 49 | | | | 49 | |
Other income | | | | | | 26 | | | | 26 | |
| | | | | | | | | | | |
Earnings before income taxes | | 331 | | 331 | | 472 | | (662 | ) | 472 | |
Provision for income taxes | | | | | | (110 | ) | | | (110 | ) |
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Earnings from continuing operations | | 331 | | 331 | | 362 | | (662 | ) | 362 | |
Loss from discontinued operations | | | | | | (15 | ) | | | (15 | ) |
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Net earnings | | 331 | | 331 | | 347 | | (662 | ) | 347 | |
Net earnings attributable to noncontrolling interests | | | | | | (16 | ) | | | (16 | ) |
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Net earnings attributable to the Company | | $ | 331 | | $ | 331 | | $ | 331 | | $ | (662 | ) | $ | 331 | |
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| | Nine months ended September 30, 2013 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Comprehensive Income | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Net earnings | | $ | 331 | | $ | 331 | | $ | 347 | | $ | (662 | ) | $ | 347 | |
Other comprehensive income (loss) | | (14 | ) | (14 | ) | (100 | ) | 108 | | (20 | ) |
Total comprehensive income (loss) | | 317 | | 317 | | 247 | | (554 | ) | 327 | |
Comprehensive income attributable to noncontrolling interests | | | | | | (10 | ) | | | (10 | ) |
Comprehensive income attributable to the Company | | $ | 317 | | $ | 317 | | $ | 237 | | $ | (554 | ) | $ | 317 | |
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| | Nine months ended September 30, 2012 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Results of Operations | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Net sales | | $ | — | | $ | — | | $ | 5,252 | | $ | — | | $ | 5,252 | |
Manufacturing, shipping and delivery | | | | | | (4,156 | ) | | | (4,156 | ) |
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Gross profit | | — | | — | | 1,096 | | — | | 1,096 | |
| | | | | | | | | | | |
Research, engineering, selling, administrative, and other | | | | | | (510 | ) | | | (510 | ) |
Net intercompany interest | | 15 | | | | (15 | ) | | | — | |
Interest expense | | (15 | ) | | | (172 | ) | | | (187 | ) |
Interest income | | | | | | 7 | | | | 7 | |
Equity earnings from subsidiaries | | 344 | | 344 | | | | (688 | ) | — | |
Other equity earnings | | | | | | 47 | | | | 47 | |
Other income | | | | | | 23 | | | | 23 | |
| | | | | | | | | | | |
Earnings from continuing operations before income taxes | | 344 | | 344 | | 476 | | (688 | ) | 476 | |
Provision for income taxes | | | | | | (113 | ) | | | (113 | ) |
| | | | | | | | | | | |
Earnings from continuing operations | | 344 | | 344 | | 363 | | (688 | ) | 363 | |
Loss from discontinued operations | | | | | | (4 | ) | | | (4 | ) |
| | | | | | | | | | | |
Net earnings | | 344 | | 344 | | 359 | | (688 | ) | 359 | |
Net earnings attributable to noncontrolling interests | | | | | | (15 | ) | | | (15 | ) |
| | | | | | | | | | | |
Net earnings attributable to the Company | | $ | 344 | | $ | 344 | | $ | 344 | | $ | (688 | ) | $ | 344 | |
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| | Nine months ended September 30, 2012 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Comprehensive Income | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Net earnings | | $ | 344 | | $ | 344 | | $ | 359 | | $ | (688 | ) | $ | 359 | |
Other comprehensive income (loss) | | 51 | | 51 | | (16 | ) | (29 | ) | 57 | |
Total comprehensive income (loss) | | 395 | | 395 | | 343 | | (717 | ) | 416 | |
Comprehensive income attributable to noncontrolling interests | | | | | | (21 | ) | | | (21 | ) |
Comprehensive income attributable to the Company | | $ | 395 | | $ | 395 | | $ | 322 | | $ | (717 | ) | $ | 395 | |
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| | Nine months ended September 30, 2013 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Cash Flows | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Cash provided by (used in) operating activities | | $ | (108 | ) | $ | — | | $ | 350 | | $ | — | | $ | 242 | |
Cash used in investing activities | | | | | | (249 | ) | | | (249 | ) |
Cash provided by (used in) financing activities | | 108 | | | | (306 | ) | | | (198 | ) |
| | | | | | | | | | | |
Effect of exchange rate change on cash | | | | | | (7 | ) | | | (7 | ) |
| | | | | | | | | | | |
Net change in cash | | — | | — | | (212 | ) | — | | (212 | ) |
Cash at beginning of period | | | | | | 431 | | | | 431 | |
| | | | | | | | | | | |
Cash at end of period | | $ | — | | $ | — | | $ | 219 | | $ | — | | $ | 219 | |
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| | Nine months ended September 30, 2012 | |
| | | | | | Non- | | | | | |
| | | | Guarantor | | Guarantor | | | | | |
Cash Flows | | Parent | | Subsidiaries | | Subsidiaries | | Eliminations | | Consolidated | |
| | | | | | | | | | | |
Cash provided by (used in) operating activities | | $ | (86 | ) | $ | — | | $ | 313 | | $ | — | | $ | 227 | |
Cash used in investing activities | | | | | | (125 | ) | | | (125 | ) |
Cash provided by (used in) financing activities | | 86 | | | | (265 | ) | | | (179 | ) |
Effect of exchange rate change on cash | | | | | | 13 | | | | 13 | |
| | | | | | | | | | | |
Net change in cash | | — | | — | | (64 | ) | — | | (64 | ) |
Cash at beginning of period | | | | | | 400 | | | | 400 | |
| | | | | | | | | | | |
Cash at end of period | | $ | — | | $ | — | | $ | 336 | | $ | — | | $ | 336 | |
|