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Equity Investments

12 Months Ended

Dec. 31, 2014

Equity Investments

Equity Investments

5. Equity Investments

        At December 31, 2014 the Company's ownership percentage in affiliates include:

Affiliates		O-I Ownership Percentage		Business Type
BJC O-I Glass Pte. Ltd.		50%		Glass container manufacturer
CO Vidrieria SARL		50%		Glass container manufacturer
Rocky Mountain Bottle Company		50%		Glass container manufacturer
Tata Chemical (Soda Ash) Partners		25%		Soda ash supplier
Vetrerie Meridionali SpA ("VeMe")		50%		Glass container manufacturer
Vetri Speciali SpA		50%		Speciality glass manufacturer

        During the fourth quarter of 2014, the Company entered into a joint venture agreement with Constellation Brands, Inc. to operate a glass container plant in Nava, Mexico. The Company has determined the accounting for the investment and returns as an equity joint venture.

        During the fourth quarter of 2013, changes were made to the VeMe joint venture agreement that resulted in the Company relinquishing control of the joint venture and, therefore, deconsolidating the entity. No gain or loss was recognized related to the deconsolidation as the fair value of the entity was equal to the carrying amount of the entity's assets and liabilities. The fair value, which the Company classified as Level 3 in the fair value hierarchy, was computed using a discounted cash flow analysis based on projected future cash flows of the joint venture.

        Summarized information pertaining to the Company's equity associates follows:

		2014			2013			2012
Equity in earnings:
Non-U.S.		$	23		$	27		$	20
U.S.			41			40			44
​	​	​	​	​	​	​	​	​	​	​
Total		$	64		$	67		$	64
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
Dividends received		$	54		$	67		$	50
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

        Summarized combined financial information for equity associates is as follows (unaudited):

		2014			2013
At end of year:
Current assets		$	479		$	419
Non-current assets			718			528
​	​	​	​	​	​	​	​
Total assets			1,197			947
Current liabilities			217			224
Other liabilities and deferred items			191			193
​	​	​	​	​	​	​	​
Total liabilities and deferred items			408			417
​	​	​	​	​	​	​	​
Net assets		$	789		$	530
​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​

		2014			2013			2012
For the year:
Net sales		$	752		$	699		$	658
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
Gross profit		$	198		$	185		$	191
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
Net earnings		$	150		$	149		$	143
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

        The Company purchased approximately $188 million and $133 million from equity affiliates in 2014 and 2013, respectively, and owed approximately $79 million and $42 million to equity affiliates as of December 31, 2014 and 2013, respectively.

        There is a difference of approximately $9 million as of December 31, 2014 between the amount at which certain investments are carried and the amount of underlying equity in net assets. The portion of the difference related to inventory or amortizable assets is amortized as a reduction of the equity earnings. The remaining difference is considered goodwill.

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- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.12)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 323

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571



Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 323

-SubTopic 10

-Section 35

-Paragraph 32

-URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32787-111569



Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 323

-SubTopic 10

-Section 35

-Paragraph 35

-URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32847-111569

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