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 months ended March 31, 2017 and 2016,

•balance sheets as of March 31, 2017 and December 31, 2016, and

•statements of cash flows for the three months ended March 31, 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 March 31, 2017

(in millions)



	Parent		Issuer			Non- Guarantors			Eliminations			Total Company
Net sales						$	1,901					$	1,901
Cost of products sold, excluding depreciation and amortization						1,519						1,519
Depreciation and amortization						59						59
Selling and administrative expense			$	2		88						90
Restructuring and other						(4		)				(4		)
Income from operations			(2		)	239						237
Net interest expense			20			39						59
Foreign exchange						(1		)				(1		)
Income/(loss) before income taxes			(22		)	201						179
Provision for / (benefit from) income taxes			(10		)	56						46
Equity earnings / (loss) in affiliates	$	107	99						$	(206	)	—
Net income	107		87			145			(206		)	133
Net income attributable to noncontrolling interests						(26		)				(26		)
Net income attributable to Crown Holdings	$	107	$	87		$	119		$	(206	)	$	107

Comprehensive income	$	246	$	130		$	285		$	(388	)	$	273
Comprehensive income attributable to noncontrolling interests						(27		)				(27		)
Comprehensive income attributable to Crown Holdings	$	246	$	130		$	258		$	(388	)	$	246

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 from early extinguishment 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 BALANCE SHEET

As of March 31, 2017

(in millions)



	Parent		Issuer		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents					$	338				$	338
Receivables, net					899					899
Inventories					1,417					1,417
Prepaid expenses and other current assets	$	2			232					234
Total current assets	2		—		2,886					2,888

Intercompany debt receivables					3,592		$	(3,592	)	—
Investments	3,103		$	3,053			(6,156		)	—
Goodwill and intangible assets					3,357					3,357
Property, plant and equipment, net					2,898					2,898
Other non-current assets			505		222					727
Total	$	3,105	$	3,558	$	12,955	$	(9,748	)	$	9,870

Liabilities and equity
Current liabilities
Short-term debt					$	37				$	37
Current maturities of long-term debt					57					57
Accounts payable and accrued liabilities	$	18	$	39	2,345					2,402
Total current liabilities	18		39		2,439					2,496

Long-term debt, excluding current maturities			392		4,814					5,206
Long-term intercompany debt	2,544		1,048				$	(3,592	)	—
Postretirement and pension liabilities					596					596
Other non-current liabilities			355		358					713
Commitments and contingent liabilities
Noncontrolling interests					316					316
Crown Holdings shareholders’ equity/(deficit)	543		1,724		4,432		(6,156		)	543
Total equity/(deficit)	543		1,724		4,748		(6,156		)	859
Total	$	3,105	$	3,558	$	12,955	$	(9,748	)	$	9,870

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					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 three months ended March 31, 2017

(in millions)



	Parent			Issuer			Non- Guarantors			Eliminations			Total Company
Net cash provided by/(used for) operating activities	$	(9	)	$	(14	)	$	(293	)	$	(4	)	$	(320	)
Cash flows from investing activities
Capital expenditures							(107		)				(107		)
Proceeds from sale of property, plant and equipment							3						3
Net cash provided by/(used for) investing activities	—			—			(104		)	—			(104		)
Cash flows from financing activities
Proceeds from long-term debt							4						4
Payments of long-term debt							(12		)				(12		)
Net change in revolving credit facility and short-term debt							351						351
Net change in long-term intercompany balances	135			14			(149		)				—
Common stock issued	7												7
Common stock repurchased	(133		)										(133		)
Dividends paid							(4		)	4			—
Dividend paid to noncontrolling interests							(13		)				(13		)
Foreign exchange derivatives related to debt							(5		)				(5		)
Net cash provided by/(used for) financing activities	9			14			172			4			199
Effect of exchange rate changes on cash and cash equivalents							4						4
Net change in cash and cash equivalents	—			—			(221		)	—			(221		)
Cash and cash equivalents at January 1							559						559
Cash and cash equivalents at March 31	$	—		$	—		$	338		$	—		$	338

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		)
Proceeds from sale of property, plant and equipment							4						4
Intercompany investing activities	150									(150		)	—
Other							(1		)				(1		)
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

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 months ended March 31, 2017 and 2016,


•	balance sheets as of March 31, 2017 and December 31, 2016, and


•	statements of cash flows for the three months ended March 31, 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 March 31, 2017

(in millions)



	Parent		Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net sales						$	445		$	1,456					$	1,901
Cost of products sold, excluding depreciation and amortization						361			1,158						1,519
Depreciation and amortization						10			49						59
Selling and administrative expense			$	2		33			55						90
Restructuring and other						1			(5		)				(4		)
Income from operations			(2		)	40			199						237
Net interest expense			17			21			21						59
Technology royalty						(9		)	9						—
Foreign exchange			10						(1		)	$	(10	)	(1		)
Income/(loss) before income taxes			(29		)	28			170			10			179
Provision for / (benefit from) income taxes			(11		)	8			45			4			46
Equity earnings / (loss) in affiliates	$	107	49			67						(223		)	—
Net income	107		31			87			125			(217		)	133
Net income attributable to noncontrolling interests									(26		)				(26		)
Net income attributable to Crown Holdings	$	107	$	31		$	87		$	99		$	(217	)	$	107

Comprehensive income	$	246	$	35		$	130		$	271		$	(409	)	$	273
Comprehensive income attributable to noncontrolling interests									(27		)				(27		)
Comprehensive income attributable to Crown Holdings	$	246	$	35		$	130		$	244		$	(409	)	$	246

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 extinguishment 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 BALANCE SHEET

As of March 31, 2017

(in millions)



	Parent		Issuer		Guarantors		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents			$	79			$	259				$	338
Receivables, net					$	10	889					899
Intercompany receivables					32		14		$	(46	)	—
Inventories					386		1,031					1,417
Prepaid expenses and other current assets	$	2	2		23		207					234
Total current assets	2		81		451		2,400		(46		)	2,888

Intercompany debt receivables			2,885		3,346		675		(6,906		)	—
Investments	3,103		2,366		1,058				(6,527		)	—
Goodwill and intangible assets					468		2,889					3,357
Property, plant and equipment, net			1		505		2,392					2,898
Other non-current assets			3		516		208					727
Total	$	3,105	$	5,336	$	6,344	$	8,564	$	(13,479	)	$	9,870

Liabilities and equity
Current liabilities
Short-term debt							$	37				$	37
Current maturities of long-term debt			$	18			39					57
Accounts payable and accrued liabilities	$	18	15		$	576	1,793					2,402
Intercompany payables					14		32		$	(46	)	—
Total current liabilities	18		33		590		1,901		(46		)	2,496

Long-term debt, excluding current maturities			2,565		392		2,249					5,206
Long-term intercompany debt	2,544		1,325		2,855		182		(6,906		)	—
Postretirement and pension liabilities					408		188					596
Other non-current liabilities					375		338					713
Commitments and contingent liabilities
Noncontrolling interests							316					316
Crown Holdings shareholders’ equity/(deficit)	543		1,413		1,724		3,390		(6,527		)	543
Total equity/(deficit)	543		1,413		1,724		3,706		(6,527		)	859
Total	$	3,105	$	5,336	$	6,344	$	8,564	$	(13,479	)	$	9,870

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					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 three months ended March 31, 2017

(in millions)



	Parent			Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net provided by/(used for) operating activities	$	(9	)	$	(24	)	$	(69	)	$	(208	)	$	(10	)	$	(320	)
Cash flows from investing activities
Capital expenditures							(50		)	(57		)				(107		)
Proceeds from sale of property, plant and equipment										3						3
Net cash provided by/(used for) investing activities	—			—			(50		)	(54		)	—			(104		)
Cash flows from financing activities
Proceeds from long-term debt										4						4
Payments of long-term debt										(12		)				(12		)
Net change in revolving credit facility and short-term debt				205						146						351
Net change in long-term intercompany balances	135			(185		)	119			(69		)				—
Common stock issued	7															7
Common stock repurchased	(133		)													(133		)
Dividends paid										(10		)	10			—
Dividends paid to noncontrolling interests										(13		)				(13		)
Foreign exchange derivatives related to debt										(5		)				(5		)
Net cash provided by/(used for) financing activities	9			20			119			41			10			199
Effect of exchange rate changes on cash and cash equivalents										4						4
Net change in cash and cash equivalents	—			(4		)	—			(217		)	—			(221		)
Cash and cash equivalents at January 1				83						476						559
Cash and cash equivalents at March 31	$	—		$	79		$	—		$	259		$	—		$	338

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		)
Proceeds from sale of property, plant and equipment										4						4
Intercompany investing activities	150						150						(300		)	—
Other										(1		)				(1		)
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