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- Guarantors			Eliminations			Total Company
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- Guarantors			Eliminations			Total Company
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- Guarantors			Eliminations			Total Company
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- Guarantors			Eliminations			Total Company
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