mple
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark one)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
June 30, 2017
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-9576
OWENS-ILLINOIS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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22-2781933 |
(State or other jurisdiction of |
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(IRS Employer |
incorporation or organization) |
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Identification No.) |
One Michael Owens Way, Perrysburg, Ohio |
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43551 |
(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (567) 336-5000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒ |
Accelerated filer ☐ |
Non-accelerated filer ☐ (Do not check if a smaller reporting company)
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Smaller reporting company ☐ |
Emerging growth company ☐ |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares of common stock, par value $.01, of Owens-Illinois, Inc. outstanding as of June 30, 2017 was 162,875,946.
Part I — FINANCIAL INFORMATION
The Condensed Consolidated Financial Statements of Owens-Illinois, Inc. (the “Company”) presented herein are unaudited but, in the opinion of management, reflect all adjustments necessary to present fairly such information for the periods and at the dates indicated. All adjustments are of a normal recurring nature. Because the following unaudited condensed consolidated financial statements have been prepared in accordance with Article 10 of Regulation S-X, they do not contain all information and footnotes normally contained in annual consolidated financial statements; accordingly, they should be read in conjunction with the Consolidated Financial Statements and notes thereto appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.
1
OWENS-ILLINOIS, INC.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(Dollars in millions, except per share amounts)
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2017 |
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2016 |
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2017 |
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2016 |
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Net sales |
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$ |
1,751 |
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$ |
1,760 |
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$ |
3,366 |
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$ |
3,348 |
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Cost of goods sold |
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(1,405) |
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(1,418) |
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(2,705) |
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(2,687) |
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Gross profit |
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346 |
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342 |
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661 |
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661 |
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Selling and administrative expense |
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(123) |
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(126) |
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(242) |
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(254) |
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Research, development and engineering expense |
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(16) |
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(16) |
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(31) |
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(32) |
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Interest expense, net |
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(62) |
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(67) |
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(141) |
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(133) |
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Equity earnings |
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18 |
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15 |
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33 |
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29 |
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Other expense, net |
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(11) |
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(7) |
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(56) |
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(29) |
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|
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Earnings from continuing operations before income taxes |
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152 |
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|
141 |
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|
224 |
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242 |
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Provision for income taxes |
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(9) |
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(30) |
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(28) |
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(57) |
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Earnings from continuing operations |
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143 |
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111 |
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196 |
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185 |
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Loss from discontinued operations |
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(2) |
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(3) |
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Net earnings |
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143 |
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109 |
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196 |
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182 |
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Net earnings attributable to noncontrolling interests |
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(3) |
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(4) |
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(8) |
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(10) |
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Net earnings attributable to the Company |
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$ |
140 |
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$ |
105 |
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$ |
188 |
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$ |
172 |
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Amounts attributable to the Company: |
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|
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Earnings from continuing operations |
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$ |
140 |
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$ |
107 |
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$ |
188 |
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$ |
175 |
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Loss from discontinued operations |
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(2) |
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(3) |
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Net earnings |
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$ |
140 |
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$ |
105 |
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$ |
188 |
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$ |
172 |
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Basic earnings per share: |
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Earnings from continuing operations |
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$ |
0.86 |
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$ |
0.66 |
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$ |
1.16 |
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$ |
1.08 |
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Loss from discontinued operations |
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(0.01) |
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(0.02) |
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Net earnings |
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$ |
0.86 |
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$ |
0.65 |
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$ |
1.16 |
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$ |
1.06 |
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Weighted averages shares outstanding (thousands) |
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162,716 |
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161,945 |
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162,553 |
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161,574 |
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Diluted earnings per share: |
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Earnings from continuing operations |
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$ |
0.85 |
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$ |
0.65 |
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$ |
1.15 |
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$ |
1.07 |
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Loss from discontinued operations |
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(0.01) |
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(0.02) |
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Net earnings |
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$ |
0.85 |
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$ |
0.64 |
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$ |
1.15 |
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$ |
1.05 |
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Weighted average diluted shares outstanding (thousands) |
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164,482 |
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162,820 |
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164,162 |
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162,307 |
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See accompanying notes.
2
OWENS-ILLINOIS, INC.
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME
(Dollars in millions)
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2017 |
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2016 |
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2017 |
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2016 |
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Net earnings |
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$ |
143 |
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$ |
109 |
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$ |
196 |
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$ |
182 |
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Other comprehensive income (loss): |
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|
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Foreign currency translation adjustments |
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14 |
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(108) |
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202 |
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(14) |
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Pension and other postretirement benefit adjustments, net of tax |
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4 |
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26 |
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15 |
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(16) |
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Change in fair value of derivative instruments, net of tax |
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(4) |
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8 |
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(10) |
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6 |
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Other comprehensive income (loss) |
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14 |
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(74) |
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207 |
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(24) |
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Total comprehensive income (loss) |
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157 |
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35 |
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|
403 |
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|
158 |
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Comprehensive (income) loss attributable to noncontrolling interests |
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7 |
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|
8 |
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(2) |
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Comprehensive income attributable to the Company |
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$ |
164 |
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$ |
43 |
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$ |
403 |
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$ |
156 |
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|
See accompanying notes.
3
OWENS-ILLINOIS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
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June 30, |
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December 31, |
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June 30, |
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2017 |
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2016 |
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2016 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
335 |
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$ |
492 |
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$ |
334 |
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Trade receivables, net of allowance of $35 million, $32 million, and $31 million at June 30, 2017, December 31, 2016 and June 30, 2016 |
|
|
956 |
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|
580 |
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|
831 |
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Inventories |
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1,049 |
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|
983 |
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1,051 |
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Prepaid expenses and other current assets |
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214 |
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199 |
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|
358 |
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Total current assets |
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2,554 |
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|
2,254 |
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2,574 |
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Property, plant and equipment, net |
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2,996 |
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2,880 |
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2,932 |
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Goodwill |
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2,588 |
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2,462 |
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2,536 |
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Intangibles, net |
|
|
486 |
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|
464 |
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|
517 |
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Other assets |
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|
1,156 |
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|
1,075 |
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|
1,108 |
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Total assets |
|
$ |
9,780 |
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$ |
9,135 |
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$ |
9,667 |
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Liabilities and Share Owners' Equity |
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Current liabilities: |
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Short-term loans and long-term debt due within one year |
|
$ |
271 |
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$ |
195 |
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$ |
305 |
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Current portion of asbestos-related liabilities |
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|
115 |
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|
115 |
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|
130 |
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Accounts payable |
|
|
1,065 |
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|
1,135 |
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|
1,042 |
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Other liabilities |
|
|
564 |
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|
615 |
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|
518 |
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Total current liabilities |
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|
2,015 |
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|
2,060 |
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|
1,995 |
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Long-term debt |
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5,471 |
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|
5,133 |
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|
5,549 |
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Asbestos-related liabilities |
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|
551 |
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|
577 |
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|
663 |
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Other long-term liabilities |
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|
964 |
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|
1,002 |
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|
1,002 |
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Share owners' equity |
|
|
779 |
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|
363 |
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|
458 |
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Total liabilities and share owners' equity |
|
$ |
9,780 |
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$ |
9,135 |
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$ |
9,667 |
|
See accompanying notes.
4
OWENS-ILLINOIS, INC.
CONDENSED CONSOLIDATED CASH FLOWS
(Dollars in millions)
|
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Six months ended June 30, |
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2017 |
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2016 |
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Cash flows from operating activities: |
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Net earnings |
|
$ |
196 |
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$ |
182 |
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|
Loss from discontinued operations |
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3 |
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Non-cash charges |
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Depreciation and amortization |
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245 |
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|
250 |
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Pension expense |
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15 |
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15 |
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Restructuring, asset impairment and related charges |
|
|
48 |
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19 |
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Cash payments |
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Pension contributions |
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(20) |
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(9) |
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Asbestos-related payments |
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(26) |
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(24) |
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Cash paid for restructuring activities |
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(16) |
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(17) |
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Change in components of working capital |
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|
(585) |
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|
(491) |
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Other, net (a) |
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(13) |
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(35) |
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Cash utilized in continuing operating activities |
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(156) |
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(107) |
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Cash utilized in discontinued operating activities |
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(3) |
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Total cash utilized in operating activities |
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(156) |
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(110) |
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Cash flows from investing activities: |
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Additions to property, plant and equipment |
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(186) |
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(207) |
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Acquisitions, net of cash acquired |
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(27) |
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(31) |
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Net foreign exchange derivative activity |
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2 |
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14 |
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Net cash proceeds related to the sale of assets |
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6 |
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34 |
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Cash utilized in investing activities |
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(205) |
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(190) |
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Cash flows from financing activities: |
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Changes in borrowings, net |
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215 |
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246 |
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Issuance of common stock and other |
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5 |
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Distributions to noncontrolling interests |
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(9) |
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(10) |
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Payment of finance fees |
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(21) |
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(3) |
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Cash provided by financing activities |
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|
185 |
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|
238 |
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Effect of exchange rate fluctuations on cash |
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|
19 |
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(3) |
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Decrease in cash |
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(157) |
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(65) |
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Cash at beginning of period |
|
|
492 |
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|
399 |
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|
Cash at end of period |
|
$ |
335 |
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$ |
334 |
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(a) |
Other, net includes other non-cash charges plus other changes in non-current assets and liabilities. |
See accompanying notes.
5
OWENS-ILLINOIS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Tabular data dollars in millions, except per share amounts
1. Segment Information
The Company has four reportable segments based on its geographic locations: Europe, North America, Latin America and Asia Pacific. These four segments are aligned with the Company’s internal approach to managing, reporting, and evaluating performance of its global glass operations. Certain assets and activities not directly related to one of the regions or to glass manufacturing are reported with Retained corporate costs and other. These include licensing, equipment manufacturing, global engineering, and certain equity investments. Retained corporate costs and other also includes certain headquarters administrative and facilities costs and certain incentive compensation and other benefit plan costs that are global in nature and are not allocable to the reportable segments.
The Company’s measure of profit for its reportable segments is segment operating profit, which consists of consolidated earnings from continuing operations before interest income, interest expense, and provision for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations as well as certain retained corporate costs. The Company’s management uses segment operating profit, in combination with selected cash flow information, to evaluate performance and to allocate resources. Segment operating profit for reportable segments includes an allocation of some corporate expenses based on both a percentage of sales and direct billings based on the costs of specific services provided.
Intercompany sales in Latin America totaled $30 million and $63 million for the three and six months ended June 30, 2017, respectively, and $43 million and $93 million for the three and six months ended June 30, 2016, respectively.
Financial information for the three and six months ended June 30, 2017 and 2016 regarding the Company’s reportable segments is as follows:
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Three months ended June 30, |
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Six months ended June 30, |
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2017 |
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2016 |
|
2017 |
|
2016 |
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Net sales: |
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|
|
|
|
|
|
|
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|
|
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Europe |
|
$ |
635 |
|
$ |
646 |
|
$ |
1,189 |
|
$ |
1,209 |
|
North America |
|
|
572 |
|
|
599 |
|
|
1,100 |
|
|
1,131 |
|
Latin America |
|
|
370 |
|
|
345 |
|
|
711 |
|
|
657 |
|
Asia Pacific |
|
|
155 |
|
|
158 |
|
|
328 |
|
|
317 |
|
Reportable segment totals |
|
|
1,732 |
|
|
1,748 |
|
|
3,328 |
|
|
3,314 |
|
Other |
|
|
19 |
|
|
12 |
|
|
38 |
|
|
34 |
|
Net sales |
|
$ |
1,751 |
|
$ |
1,760 |
|
$ |
3,366 |
|
$ |
3,348 |
|
6
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Three months ended June 30, |
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Six months ended June 30, |
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||||||||
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2017 |
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2016 |
|
2017 |
|
2016 |
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Segment operating profit: |
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|
|
|
|
|
|
|
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Europe |
|
$ |
80 |
|
$ |
73 |
|
$ |
139 |
|
$ |
128 |
|
North America |
|
|
92 |
|
|
92 |
|
|
177 |
|
|
168 |
|
Latin America |
|
|
69 |
|
|
57 |
|
|
123 |
|
|
120 |
|
Asia Pacific |
|
|
11 |
|
|
11 |
|
|
31 |
|
|
28 |
|
Reportable segment totals |
|
|
252 |
|
|
233 |
|
|
470 |
|
|
444 |
|
Items excluded from segment operating profit: |
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|
|
|
|
|
|
|
|
|
|
|
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Retained corporate costs and other |
|
|
(28) |
|
|
(25) |
|
|
(56) |
|
|
(57) |
|
Restructuring, asset impairment and other |
|
|
(10) |
|
|
|
|
|
(49) |
|
|
(12) |
|
Interest expense, net |
|
|
(62) |
|
|
(67) |
|
|
(141) |
|
|
(133) |
|
Earnings from continuing operations before income taxes |
|
$ |
152 |
|
$ |
141 |
|
$ |
224 |
|
$ |
242 |
|
Financial information regarding the Company’s total assets is as follows:
|
|
|
June 30, |
|
December 31, |
|
June 30, |
|||
|
|
|
2017 |
|
2016 |
|
2016 |
|||
Total assets: |
|
|
|
|
|
|
|
|
|
|
Europe |
|
$ |
3,074 |
|
$ |
2,792 |
|
$ |
2,977 |
|
North America |
|
|
2,781 |
|
|
2,522 |
|
|
2,562 |
|
Latin America |
|
|
2,730 |
|
|
2,537 |
|
|
2,798 |
|
Asia Pacific |
|
|
987 |
|
|
926 |
|
|
981 |
|
|
|
|
|
|
|
|
|
|
|
|
Reportable segment totals |
|
|
9,572 |
|
|
8,777 |
|
|
9,318 |
|
Other |
|
|
208 |
|
|
358 |
|
|
349 |
|
Consolidated totals |
|
$ |
9,780 |
|
$ |
9,135 |
|
$ |
9,667 |
|
2. Inventories
Major classes of inventory at June 30, 2017, December 31, 2016 and June 30, 2016 are as follows:
|
|
June 30, |
|
December 31, |
|
June 30, |
|
|
|||
|
|
2017 |
|
2016 |
|
2016 |
|
|
|||
Finished goods |
|
$ |
879 |
|
$ |
827 |
|
$ |
892 |
|
|
Raw materials |
|
|
130 |
|
|
118 |
|
|
121 |
|
|
Operating supplies |
|
|
40 |
|
|
38 |
|
|
38 |
|
|
|
|
$ |
1,049 |
|
$ |
983 |
|
$ |
1,051 |
|
|
3. Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets at June 30, 2017, December 31, 2016 and June 30, 2016 are as follows:
|
|
June 30, |
|
December 31, |
|
June 30, |
|||
|
|
2017 |
|
2016 |
|
2016 |
|||
Prepaid expenses |
|
$ |
61 |
|
$ |
50 |
|
$ |
70 |
Value added taxes |
|
|
39 |
|
|
46 |
|
|
172 |
Other |
|
|
114 |
|
|
103 |
|
|
116 |
|
|
$ |
214 |
|
$ |
199 |
|
$ |
358 |
7
4. Derivative Instruments
The Company has certain derivative assets and liabilities which consist of natural gas forwards and foreign exchange option and forward contracts. The Company uses an income approach to value these contracts. Natural gas forward rates and foreign exchange rates are the significant inputs into the valuation models. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the Company classifies its derivative assets and liabilities as Level 2 in the hierarchy. The Company also evaluates counterparty risk in determining fair values.
Commodity Forward Contracts Designated as Cash Flow Hedges
In several regions, the Company enters into commodity forward contracts related to forecasted natural gas requirements, the objectives of which are to limit the effects of fluctuations in the future market price paid for natural gas and the related volatility in cash flows. In North America, the majority of its customer contracts contain provisions that pass the price of natural gas to its customers. In certain of these contracts, the customer has the option of fixing the natural gas price component for a specified period of time. To limit the effects of fluctuations in cash flows resulting from these customer contracts, the Company enters into commodity forward contracts related to forecasted natural gas requirements. In Asia Pacific, the Company implemented a hedging program in the first quarter of 2016, which included the execution of commodity forward contracts for certain contracted natural gas requirements. At June 30, 2017 and 2016, the Company had entered into commodity forward contracts covering approximately 9,800,000 MM BTUs and 11,300,000 MM BTUs, respectively.
The Company accounts for the above forward contracts as cash flow hedges at June 30, 2017 and recognizes them on the balance sheet at fair value. The effective portion of changes in the fair value of a derivative that is designated as, and meets the required criteria for, a cash flow hedge is recorded in the Accumulated Other Comprehensive Income component of share owners’ equity (“OCI”) and reclassified into earnings in the same period or periods during which the underlying hedged item affects earnings. An unrecognized loss of $1 million at June 30, 2017, an unrecognized gain of $6 million at December 31, 2016 and an unrecognized gain of $3 million at June 30, 2016 related to the commodity forward contracts was included in Accumulated OCI, and will be reclassified into earnings in the period when the commodity forward contracts expire. Any material portion of the change in the fair value of a derivative designated as a cash flow hedge that is deemed to be ineffective is recognized in current earnings. The ineffectiveness related to these natural gas hedges for the three and six months ended June 30, 2017 and 2016 was not material.
The effect of the commodity forward contracts on the results of operations for the three months ended June 30, 2017 and 2016 is as follows:
|
|
Amount of Gain (Loss) Reclassified from |
|
||||||||
Amount of Gain (Loss) Recognized in OCI on |
|
Accumulated OCI into Income |
|
||||||||
Commodity Forward Contracts |
|
(reported in cost of goods sold) |
|
||||||||
(Effective Portion) |
|
(Effective Portion) |
|
||||||||
2017 |
|
2016 |
|
2017 |
|
2016 |
|
||||
$ |
(2) |
|
$ |
7 |
|
$ |
— |
|
$ |
(2) |
|
The effect of the commodity forward contracts on the results of operations for the six months ended June 30, 2017 and 2016 is as follows:
|
|
Amount of Gain (Loss) Reclassified from |
|
||||||||
Amount of Gain Recognized in OCI on |
|
Accumulated OCI into Income |
|
||||||||
Commodity Forward Contracts |
|
(reported in cost of goods sold) |
|
||||||||
(Effective Portion) |
|
(Effective Portion) |
|
||||||||
2017 |
|
2016 |
|
2017 |
|
2016 |
|
||||
$ |
4 |
|
$ |
3 |
|
$ |
— |
|
$ |
— |
|
Foreign Exchange Derivative Contracts and not Designated as Hedging Instruments
The Company may enter into short-term forward exchange or option agreements to purchase foreign currencies at set rates in the future. These agreements are used to limit exposure to fluctuations in foreign currency exchange rates for significant planned purchases of fixed assets or commodities that are denominated in currencies other than the subsidiaries’ functional currency. The Company may also use foreign exchange agreements to offset the foreign
8
currency risk for receivables and payables, including intercompany receivables, payables, and loans, not denominated in, or indexed to, their functional currencies. The Company records these short-term foreign exchange agreements on the balance sheet at fair value and changes in the fair value are recognized in current earnings.
At June 30, 2017 and 2016, the Company had outstanding foreign exchange and option agreements denominated in various currencies covering the equivalent of approximately $340 million and $524 million, respectively, related primarily to intercompany transactions and loans.
The effect of the foreign exchange derivative contracts on the results of operations for the three months ended June 30, 2017 and 2016 is as follows:
|
|
Amount of Gain (Loss) |
|
||||
Location of Gain (Loss) |
|
Recognized in Income on |
|
||||
Recognized in Income on |
|
Foreign Exchange Contracts |
|
||||
Foreign Exchange Contracts |
|
2017 |
|
2016 |
|
||
Other expense |
|
$ |
4 |
|
$ |
(1) |
|
The effect of the foreign exchange derivative contracts on the results of operations for the six months ended June 30, 2017 and 2016 is as follows:
|
|
Amount of Gain |
|
||||
Location of Gain |
|
Recognized in Income on |
|
||||
Recognized in Income on |
|
Foreign Exchange Contracts |
|
||||
Foreign Exchange Contracts |
|
2017 |
|
2016 |
|
||
Other expense |
|
$ |
6 |
|
$ |
4 |
|
Hedges of Multiple Risks
The Company has variable-interest rate borrowings denominated in currencies other than the functional currency of the borrowing subsidiaries. As a result, the Company is exposed to fluctuations in both the underlying variable interest rate and the currency of the borrowing against the subsidiaries’ functional currency. The Company uses derivatives to manage these exposures and designates these derivatives as cash flow hedges of both interest rate and foreign exchange risks. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges of both interest rate risk and foreign exchange risk is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period for which the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings.
During the second quarter of 2017, one of the Company’s Euro-functional subsidiaries entered into a cross-currency interest rate swap to manage its exposure to fluctuations in the variable interest rate and the U.S. dollar-Euro exchange rate arising from a U.S. dollar denominated borrowing. This swap involves exchanging fixed rate Euro interest payments for floating rate U.S. dollar interest receipts both of which will occur at the forward exchange rates in effect upon entering into the instrument. This instrument, expected to settle in the third quarter of 2017, has a pay fixed notional amount of €81 million and a receive notional amount of $90 million.
Balance Sheet Classification
The Company records the fair values of derivative financial instruments on the balance sheet as follows: (a) receivables if the instrument has a positive fair value and maturity within one year, (b) deposits, receivables, and other assets if the instrument has a positive fair value and maturity after one year, and (c) other accrued liabilities or other liabilities (current) if the instrument has a negative fair value and maturity within one year.
9
The following table shows the amount and classification (as noted above) of the Company’s derivatives at June 30, 2017, December 31, 2016 and June 30, 2016:
|
|
Fair Value |
|
|
|||||||||
|
|
Balance Sheet |
|
June 30, |
|
December 31, |
|
June 30, |
|
|
|||
|
|
Location |
|
2017 |
|
2016 |
|
2016 |
|
|
|||
Asset derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity futures contracts |
|
a |
|
$ |
— |
|
$ |
6 |
|
$ |
3 |
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange derivative contracts |
|
a |
|
|
2 |
|
|
9 |
|
|
6 |
|
|
Total asset derivatives |
|
|
|
$ |
2 |
|
$ |
15 |
|
$ |
9 |
|
|
Liability derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity futures contracts |
|
c |
|
$ |
1 |
|
$ |
— |
|
$ |
— |
|
|
Hedges of multiple risks |
|
c |
|
|
3 |
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange derivative contracts |
|
c |
|
|
3 |
|
|
5 |
|
|
3 |
|
|
Total liability derivatives |
|
|
|
$ |
7 |
|
$ |
5 |
|
$ |
3 |
|
|
5. Restructuring Accruals
Selected information related to the restructuring accruals for the three months ended June 30, 2017 and 2016 is as follows:
|
|
Other |
|
|
|
|
Restructuring |
|
|
|
|
Actions |
|
|
Balance at April 1, 2017 |
|
$ |
104 |
|
Charges |
|
|
10 |
|
Write-down of assets to net realizable value |
|
|
|
|
Net cash paid, principally severance and related benefits |
|
|
(8) |
|
Other, including foreign exchange translation |
|
|
5 |
|
Balance at June 30, 2017 |
|
$ |
111 |
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
Asia Pacific |
|
Restructuring |
|
Total |
|
|||
|
|
Restructuring |
|
Actions |
|
Restructuring |
|
|||
Balance at April 1, 2016 |
|
$ |
6 |
|
$ |
34 |
|
$ |
40 |
|
Net cash paid, principally severance and related benefits |
|
|
|
|
|
(4) |
|
|
(4) |
|
Other, including foreign exchange translation |
|
|
|
|
|
(2) |
|
|
(2) |
|
Balance at June 30, 2016 |
|
$ |
6 |
|
$ |
28 |
|
$ |
34 |
|
Selected information related to the restructuring accruals for the six months ended June 30, 2017 and 2016 is as follows:
|
|
Other |
|
|
|
|
Restructuring |
|
|
|
|
Actions |
|
|
Balance at January 1, 2017 |
|
$ |
85 |
|
Charges |
|
|
48 |
|
Write-down of assets to net realizable value |
|
|
(9) |
|
Net cash paid, principally severance and related benefits |
|
|
(16) |
|
Other, including foreign exchange translation |
|
|
3 |
|
Balance at June 30, 2017 |
|
$ |
111 |
|
10