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 $40 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, 2018 and 2017,

•balance sheets as of March 31, 2018 and December 31, 2017, and

•statements of cash flows for the three months ended March 31, 2018 and 2017

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, 2018

(in millions)



	Parent		Issuer			Non- Guarantors			Eliminations			Total Company
Net sales						$	2,197					$	2,197
Cost of products sold, excluding depreciation and amortization						1,808						1,808
Depreciation and amortization						65						65
Selling and administrative expense			$	2		88						90
Restructuring and other						13						13
Income from operations			(2		)	223						221
Other pension and postretirement						(17		)				(17		)
Net interest expense			19			49						68
Foreign exchange						18						18
Income/(loss) before income taxes			(21		)	173						152
Provision for / (benefit from) income taxes			(4		)	43						39
Equity earnings / (loss) in affiliates	$	90	95						$	(185	)	—
Net income	90		78			130			(185		)	113
Net income attributable to noncontrolling interests						(23		)				(23		)
Net income attributable to Crown Holdings	$	90	$	78		$	107		$	(185	)	$	90

Total comprehensive income	$	150	$	47		$	191		$	(214	)	$	174
Comprehensive income attributable to noncontrolling interests						(24		)				(24		)
Comprehensive income attributable to Crown Holdings	$	150	$	47		$	167		$	(214	)	$	150

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						1,531						1,531
Depreciation and amortization						59						59
Selling and administrative expense			$	2		88						90
Restructuring and other						(4		)				(4		)
Income from operations			(2		)	227						225
Other pension and postretirement						(12		)				(12		)
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

Total 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 BALANCE SHEET

As of March 31, 2018

(in millions)



	Parent		Issuer		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents					$	2,201				$	2,201
Receivables, net			$	9	1,377					1,386
Inventories					1,431					1,431
Prepaid expenses and other current assets	$	2			241					243
Total current assets	2		9		5,250					5,261

Intercompany debt receivables					3,648		$	(3,648	)	—
Investments	3,296		3,519				(6,815		)	—
Goodwill					3,134					3,134
Intangible assets, net					487					487
Property, plant and equipment, net					3,322					3,322
Other non-current assets			285		590					875
Total	$	3,298	$	3,813	$	16,431	$	(10,463	)	$	13,079

Liabilities and equity
Current liabilities
Short-term debt					$	32				$	32
Current maturities of long-term debt					61					61
Accounts payable					2,009					2,009
Accrued liabilities	$	13	$	40	706					759
Total current liabilities	13		40		2,808					2,861

Long-term debt, excluding current maturities			387		7,391					7,778
Long-term intercompany debt	2,520		1,128				$	(3,648	)	—
Postretirement and pension liabilities					584					584
Other non-current liabilities			335		409					744
Commitments and contingent liabilities
Noncontrolling interests					347					347
Crown Holdings shareholders’ equity/(deficit)	765		1,923		4,892		(6,815		)	765
Total equity/(deficit)	765		1,923		5,239		(6,815		)	1,112
Total	$	3,298	$	3,813	$	16,431	$	(10,463	)	$	13,079

CONDENSED COMBINING BALANCE SHEET

As of December 31, 2017

(in millions)



	Parent		Issuer		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents					$	424				$	424
Receivables, net			$	9	1,032					1,041
Inventories					1,385					1,385
Prepaid expenses and other current assets					224					224
Total current assets	—		9		3,065					3,074

Intercompany debt receivables					3,604		$	(3,604	)	—
Investments	$	3,120	$	3,448			(6,568		)	—
Goodwill					3,046					3,046
Intangible assets, net					472					472
Property, plant and equipment, net					3,239					3,239
Other non-current assets			283		549					832
Total	$	3,120	$	3,740	$	13,975	$	(10,172	)	$	10,663

Liabilities and equity
Current liabilities
Short-term debt					$	62				$	62
Current maturities of long-term debt					64					64
Accounts payable					2,367					2,367
Accrued liabilities	$	22	$	41	694					757
Total current liabilities	22		41		3,187					3,250

Long-term debt, excluding current maturities			387		4,830					5,217
Long-term intercompany debt	2,497		1,107				$	(3,604	)	—
Postretirement and pension liabilities					588					588
Other non-current liabilities			336		349					685
Commitments and contingent liabilities
Noncontrolling interests					322					322
Crown Holdings shareholders’ equity/(deficit)	601		1,869		4,699		(6,568		)	601
Total equity/(deficit)	601		1,869		5,021		(6,568		)	923
Total	$	3,120	$	3,740	$	13,975	$	(10,172	)	$	10,663

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2018

(in millions)



	Parent			Issuer			Non- Guarantors			Eliminations		Total Company
Net cash provided by/(used for) operating activities	$	(22	)	$	(21	)	$	(708	)	$	—	$	(751	)
Cash flows from investing activities
Capital expenditures							(92		)			(92		)
Beneficial interests in transferred receivables							175					175
Other							(25		)			(25		)
Net cash provided by/(used for) investing activities	—						58			—		58
Cash flows from financing activities
Proceeds from long-term debt							1,912					1,912
Payments of long-term debt							(13		)			(13		)
Net change in revolving credit facility and short-term debt							576					576
Net change in long-term intercompany balances	23			21			(44		)			—
Debt issue costs							(29		)			(29		)
Common stock repurchased	(1		)									(1		)
Foreign exchange derivatives related to debt							10					10
Net cash provided by/(used for) financing activities	22			21			2,412			—		2,455
Effect of exchange rate changes on cash, cash equivalents and restricted cash							14					14
Net change in cash, cash equivalents and restricted cash	—			—			1,776			—		1,776
Cash, cash equivalents and restricted cash at January 1							435					435
Cash, cash equivalents and restricted cash at March 31	$	—		$	—		$	2,211		$	—	$	2,211

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	)	$	(550	)	$	(4	)	$	(577	)
Cash flows from investing activities
Capital expenditures							(107		)				(107		)
Beneficial interests in transferred receivables							257						257
Proceeds from sale of property, plant and equipment							3						3
Net cash provided by/(used for) investing activities	—						153			—			153
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, cash equivalents and restricted cash							4						4
Net change in cash, cash equivalents and restricted cash	—			—			(221		)	—			(221		)
Cash, cash equivalents and restricted cash at January 1							576						576
Cash, cash equivalents and restricted cash at March 31	$	—		$	—		$	355		$	—		$	355

Crown Americas, LLC, Crown Americas Capital Corp. IV, Crown Americas Capital Corp. V and Crown Americas Capital Corp. VI (collectively, the Issuer), 100% owned subsidiaries of the Company, have outstanding $1,000 principal amount of 4.5% senior notes due 2023, $400 principal amount of 4.25% senior notes due 2026, and $875 principal amount of 4.75% 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, 2018 and 2017,


•	balance sheets as of March 31, 2018 and December 31, 2017, and


•	statements of cash flows for the three months ended March 31, 2018 and 2017

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, 2018

(in millions)



	Parent		Issuer			Guarantors			Non- Guarantors			Eliminations			Total Company
Net sales						$	514		$	1,683					$	2,197
Cost of products sold, excluding depreciation and amortization						432			1,376						1,808
Depreciation and amortization						11			54						65
Selling and administrative expense			$	2		33			55						90
Restructuring and other			3			2			8						13
Income from operations			(5		)	36			190						221
Other pension and postretirement						(5		)	(12		)				(17		)
Net interest expense			23			21			24						68
Technology royalty						(11		)	11						—
Foreign exchange			56			(1		)	19			$	(56	)	18
Income/(loss) before income taxes			(84		)	32			148			56			152
Provision for / (benefit from) income taxes			(20		)	9			37			13			39
Equity earnings / (loss) in affiliates	$	90	56			55						(201		)	—
Net income	90		(8		)	78			111			(158		)	113
Net income attributable to noncontrolling interests									(23		)				(23		)
Net income attributable to Crown Holdings	$	90	$	(8	)	$	78		$	88		$	(158	)	$	90

Total comprehensive income	$	150	$	(7	)	$	47		$	214		$	(230	)	$	174
Comprehensive income attributable to noncontrolling interests									(24		)				(24		)
Comprehensive income attributable to Crown Holdings	$	150	$	(7	)	$	47		$	190		$	(230	)	$	150

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						371			1,160						1,531
Depreciation and amortization						10			49						59
Selling and administrative expense			$	2		33			55						90
Restructuring and other						1			(5		)				(4		)
Income from operations			(2		)	30			197						225
Other pension and postretirement						(10		)	(2		)				(12		)
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

Total 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 BALANCE SHEET

As of March 31, 2018

(in millions)



	Parent		Issuer		Guarantors		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents			$	676	$	2	$	1,523				$	2,201
Receivables, net			3		78		1,305					1,386
Intercompany receivables					28		10		$	(38	)	—
Inventories					350		1,081					1,431
Prepaid expenses and other current assets	$	2	2		15		224					243
Total current assets	2		681		473		4,143		(38		)	5,261

Intercompany debt receivables			2,931		3,708		778		(7,417		)	—
Investments	3,296		2,537		1,041				(6,874		)	—
Goodwill					453		2,681					3,134
Intangible assets, net					13		474					487
Property, plant and equipment, net			1		524		2,797					3,322
Other non-current assets			11		331		533					875
Total	$	3,298	$	6,161	$	6,543	$	11,406	$	(14,329	)	$	13,079

Liabilities and equity
Current liabilities
Short-term debt							$	32				$	32
Current maturities of long-term debt			$	23	$	3	35					61
Accounts payable					502		1,507					2,009
Accrued liabilities	$	13	32		85		629					759
Intercompany payables					10		28		$	(38	)	—
Total current liabilities	13		55		600		2,231		(38		)	2,861

Long-term debt, excluding current maturities			3,113		407		4,258					7,778
Long-term intercompany debt	2,520		1,470		2,912		515		(7,417		)	—
Postretirement and pension liabilities					368		216					584
Other non-current liabilities			37		333		374					744
Commitments and contingent liabilities
Noncontrolling interests							347					347
Crown Holdings shareholders’ equity/(deficit)	765		1,486		1,923		3,465		(6,874		)	765
Total equity/(deficit)	765		1,486		1,923		3,812		(6,874		)	1,112
Total	$	3,298	$	6,161	$	6,543	$	11,406	$	(14,329	)	$	13,079

CONDENSED COMBINING BALANCE SHEET

As of December 31, 2017

(in millions)



	Parent		Issuer		Guarantors		Non- Guarantors		Eliminations			Total Company
Assets
Current assets
Cash and cash equivalents			$	36	$	3	$	385				$	424
Receivables, net					29		1,012					1,041
Intercompany receivables					32		13		$	(45	)	—
Inventories					347		1,038					1,385
Prepaid expenses and other current assets			2		17		205					224
Total current assets	—		38		428		2,653		(45		)	3,074

Intercompany debt receivables			2,523		3,325		732		(6,580		)	—
Investments	$	3,120	2,479		1,032				(6,631		)	—
Goodwill					453		2,593					3,046
Intangible assets, net					13		459					472
Property, plant and equipment, net			1		515		2,723					3,239
Other non-current assets			11		311		510					832
Total	$	3,120	$	5,052	$	6,077	$	9,670	$	(13,256	)	$	10,663

Liabilities and equity
Current liabilities
Short-term debt							$	62				$	62
Current maturities of long-term debt			$	23	$	3	38					64
Accounts payable					547		1,820					2,367
Accrued liabilities	$	22	31		72		632					757
Intercompany payables					13		32		$	(45	)	—
Total current liabilities	22		54		635		2,584		(45		)	3,250

Long-term debt, excluding current maturities			2,094		408		2,715					5,217
Long-term intercompany debt	2,497		1,411		2,454		218		(6,580		)	—
Postretirement and pension liabilities					373		215					588
Other non-current liabilities					338		347					685
Commitments and contingent liabilities
Noncontrolling interests							322					322
Crown Holdings shareholders’ equity/(deficit)	601		1,493		1,869		3,269		(6,631		)	601
Total equity/(deficit)	601		1,493		1,869		3,591		(6,631		)	923
Total	$	3,120	$	5,052	$	6,077	$	9,670	$	(13,256	)	$	10,663

CONDENSED COMBINING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2018

(in millions)



	Parent			Issuer			Guarantors			Non- Guarantors			Eliminations		Total Company
Net cash provided by/(used for) operating activities	$	(22	)	$	(29	)	$	(55	)	$	(645	)			$	(751	)
Cash flows from investing activities
Capital expenditures							(20		)	(72		)			(92		)
Beneficial interests in transferred receivables										175					175
Other										(25		)			(25		)
Net cash provided by/(used for) investing activities	—			—			(20		)	78			—		58
Cash flows from financing activities
Proceeds from long-term debt				875						1,037					1,912
Payments of long-term debt				(4		)	(1		)	(8		)			(13		)
Net change in revolving credit facility and short-term debt				160						416					576
Net change in long-term intercompany balances	23			(349		)	75			251					—
Debt issue costs				(13		)				(16		)			(29		)
Common stock repurchased	(1		)												(1		)
Foreign exchange derivatives related to debt										10					10
Net cash provided by/(used for) financing activities	22			669			74			1,690			—		2,455
Effect of exchange rate changes on cash, cash equivalents and restricted cash										14					14
Net change in cash, cash equivalents and restricted cash	—			640			(1		)	1,137			—		1,776
Cash, cash equivalents and restricted cash at January 1				36			3			396					435
Cash, cash equivalents and restricted cash at March 31	$	—		$	676		$	2		$	1,533		$	—	$	2,211

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 cash provided by/(used for) operating activities	$	(9	)	$	(24	)	$	(69	)	$	(465	)	$	(10	)	$	(577	)
Cash flows from investing activities
Capital expenditures							(50		)	(57		)				(107		)
Beneficial interests in transferred receivables										257						257
Proceeds from sale of property, plant and equipment										3						3
Net cash provided by/(used for) investing activities	—			—			(50		)	203			—			153
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, cash equivalents and restricted cash										4						4
Net change in cash, cash equivalents and restricted cash	—			(4		)	—			(217		)	—			(221		)
Cash, cash equivalents and restricted cash at January 1				83						493						576
Cash, cash equivalents and restricted cash at March 31	$	—		$	79		$	—		$	276		$	—		$	355