PHILADELPHIA, Oct. 16, 2014 /PRNewswire/ -- Crown
Holdings, Inc. (NYSE: CCK) today announced its financial results
for the third quarter ended September 30,
2014.
Third Quarter Highlights
- Income per diluted share $1.76; before certain items $1.36 versus $1.04
in 2013
- YTD income per diluted share $2.70; before certain items $2.94 compared to $2.50 in 2013
- Entered into agreement to acquire Mexican
beverage packaging company EMPAQUE from Heineken N.V.
Net sales in the third quarter grew to $2,594 million over the $2,389 million in the third quarter of 2013
primarily due to the impact of the Mivisa acquisition.
Segment income (a non-GAAP measure) rose to $328 million in the third quarter over the
$281 million in the third quarter of
2013 primarily due to improvements in North America Food and
Asia Pacific along with
contributions from the Mivisa acquisition.
Commenting on the quarter, John W.
Conway, Chairman and Chief Executive Officer, stated, "We
are pleased with our performance during the third quarter as sales,
segment income and income per share before certain items all
increased significantly. The integration of the Mivisa
acquisition is proceeding according to plan and European food can
demand in the third quarter was strong. Demand for beverage
cans was robust throughout our developing market portfolio and was
particularly strong in Southeast
Asia and Turkey.
"We are fortunate to have reached an agreement to acquire
EMPAQUE, Mexico's leading producer
of beverage cans. This acquisition will significantly enhance
Crown's position in beverage packaging, both regionally and
globally. In North America, we will become the second largest
beverage can producer, supplying over 24 billion cans annually to a
balanced portfolio of beer and soft drink customers. On a
global basis, over 50% of our beverage can revenue will be in the
faster growing developing regions. In addition, we will add
to Crown the Western Hemisphere's largest bottle cap business and
an excellent Mexican glass bottle business."
Interest expense in the third quarter was $64 million compared to $58 million in the third quarter of 2013
primarily due to higher average debt outstanding.
Net income attributable to Crown Holdings in the third quarter
was $244 million compared to
$101 million in the third quarter
last year. Income per diluted share was $1.76 in the third quarter compared to
$0.73 in the third quarter of
2013. Net income per diluted share before certain items
increased to $1.36 over the
$1.04 in the third quarter of
2013.
During the third quarter of 2014, the Company recorded an income
tax benefit of $90 million in
connection with the reversal of tax valuation allowances in
France. Also in the third quarter, the Company issued
€650 million of 4.0% senior notes due 2022 and recorded a charge of
$34 million ($27 million net of tax) for premiums paid and the
write off of deferred financing fees in connection with the
redemption of its outstanding €500 million senior notes due
2018.
On August 31, 2014 the Company
entered into a definitive agreement to acquire EMPAQUE, a leading
Mexican manufacturer of aluminum cans and ends, bottle caps and
glass bottles for the beverage industry, from Heineken N.V., in a
cash transaction valued at $1.225
billion, subject to adjustment. The acquisition is subject
to customary closing conditions, including competition authority
approval. As previously announced, EMPAQUE is expected to
contribute between $0.15 and $0.20 to
Crown's earnings per share on an annual basis before synergies, but
including estimated amortization and depreciation for purchase
accounting adjustments.
A reconciliation from net income and income per diluted share to
net income before certain items and income per diluted share before
certain items is provided below.
Nine Month Results
Net sales for the first nine months of 2014 rose to $6,970 million over the $6,585 million in the first nine months of 2013,
reflecting the impact of the Mivisa acquisition and increased
global beverage can volumes.
Segment income in the first nine months of 2014 grew to
$813 million from the $749 million in the first nine months of 2013
primarily due to increased beverage can volumes and contributions
from the Mivisa acquisition.
Interest expense for the first nine months of 2014 was
$188 million compared to $179 million in the same period of 2013,
reflecting higher average debt outstanding.
Net income attributable to Crown Holdings for the first nine
months of 2014 was $374 million
compared to $275 million in the first
nine months of 2013. Income per diluted share for the first
nine months of 2014 grew to $2.70
compared to $1.94 in the same period
last year. Net income per diluted share before certain items
increased to $2.94 over the
$2.50 in 2013.
Non-GAAP Measures
Segment income and free cash flow are not defined terms under
U.S. generally accepted accounting principles (non-GAAP
measures). Segment income is defined by the Company as gross
profit excluding the impact of fair value adjustments to inventory
acquired in an acquisition and the timing impact of hedge
ineffectiveness, less selling and administrative expense.
Free cash flow is defined by the Company as net cash provided by
operating activities less capital expenditures and certain other
items. In addition, the information presented regarding net
income before certain items and income per diluted share before
certain items does not conform to U.S. GAAP and includes non-GAAP
measures. Non-GAAP measures should not be considered in
isolation or as a substitute for net income, income per diluted
share or cash flow data prepared in accordance with U.S. GAAP and
may not be comparable to calculations of similarly titled measures
by other companies.
The Company views segment income and free cash flow as the
principal measures of performance of its operations and for the
allocation of resources. Free cash flow has certain
limitations, however, including that it does not represent the
residual cash flow available for discretionary expenditures since
other non-discretionary expenditures, such as mandatory debt
service requirements, are not deducted from the measure. The
amount of mandatory versus discretionary expenditures can vary
significantly between periods. The Company believes that net income
before certain items and income per diluted share before certain
items are useful in evaluating the Company's operations.
Segment income, free cash flow, net income before certain items and
income per diluted share before certain items are derived from the
Company's Consolidated Statements of Operations and Cash Flows, as
applicable, and reconciliations to segment income, free cash flow,
net income before certain items and income per diluted share before
certain items can be found within this release.
Conference Call
The Company will hold a conference call tomorrow, October 17, 2014 at 9:00
a.m. (EDT) to discuss this news release.
Forward-looking and other material information may be discussed on
the conference call. The dial-in numbers for the conference
call are (517) 308-9341 or toll-free (877) 918-2313 and the access
password is "packaging." A live webcast of the call will be
made available to the public on the internet at the Company's web
site, www.crowncork.com. A replay of the conference call will
be available for a one-week period ending at midnight on October
24. The telephone numbers for the replay are (203) 369-3269
or toll free (800) 391-9853.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this
press release consists of forward-looking statements. These
forward-looking statements involve a number of risks, uncertainties
and other factors, including the Company's ability to continue to
grow sales, segment income and income per share before certain
items, to successfully close the acquisition of EMPAQUE and the
timing of required approvals, and to successfully integrate its
acquisitions of Mivisa and EMPAQUE, the level of future customer
demand for food cans in Europe and
beverage cans in Southeast Asia,
Turkey and other markets in which
the Company and EMPAQUE participate, the Company's ability to
generate sufficient income to realize tax benefits in France, the accuracy of estimated amortization
and depreciation amounts in connection with the EMPAQUE
acquisition, the earnings per share contribution from EMPAQUE, if
any, in 2015 and thereafter, and any synergies that may be realized
from the EMPAQUE acquisition that may cause actual results to be
materially different from those expressed or implied in the
forward-looking statements. Important factors that could
cause the statements made in this press release or the actual
results of operations or financial condition of the Company to
differ are discussed under the caption "Forward Looking Statements"
in the Company's Form 10-K Annual Report for the year ended
December 31, 2013 and in subsequent
filings made prior to or after the date hereof. The Company
does not intend to review or revise any particular forward-looking
statement in light of future events.
Crown Holdings, Inc., through its subsidiaries, is a leading
supplier of packaging products to consumer marketing companies
around the world. World headquarters are located in
Philadelphia, Pennsylvania.
For more information, contact:
Thomas A. Kelly, Senior Vice
President and Chief Financial Officer, (215) 698-5341
Thomas T. Fischer, Vice President
Investor Relations and Corporate Affairs, (215) 552-3720
Edward J. Bisno, Bisno
Communications, (212) 717-7578
Unaudited Consolidated Statements of Operations, Balance
Sheets, Statements of Cash Flows, Segment Information and
Supplemental Data follow.
Consolidated
Statements of Operations (Unaudited)
(in millions, except
share and per share data)
|
|
|
|
|
|
|
|
|
Three Months
Ended September
30,
|
|
Nine Months
Ended
September
30,
|
|
2014
|
|
|
2013
|
|
2014
|
|
2013
|
Net sales
|
$2,594
|
|
|
$2,389
|
|
$6,970
|
|
$6,585
|
Cost of products
sold
|
2,119
|
|
|
1,961
|
|
5,740
|
|
5,419
|
Depreciation and
amortization
|
53
|
|
|
34
|
|
135
|
|
98
|
Gross profit
(1)
|
422
|
|
|
394
|
|
1,095
|
|
1,068
|
Selling and
administrative expense
|
95
|
|
|
113
|
|
302
|
|
319
|
Restructuring and
other
|
8
|
|
|
31
|
|
91
|
|
39
|
Foreign
exchange
|
( 2)
|
|
|
( 2)
|
|
4
|
|
|
Interest
expense
|
64
|
|
|
58
|
|
188
|
|
179
|
Interest
income
|
( 2)
|
|
|
( 1)
|
|
( 5)
|
|
( 4)
|
Loss from early
extinguishment of debt
|
34
|
|
|
|
|
34
|
|
38
|
Income before
income taxes
|
225
|
|
|
195
|
|
481
|
|
497
|
Provision for income
taxes
|
( 41)
|
|
|
67
|
|
42
|
|
146
|
Equity
earnings
|
|
|
|
( 1)
|
|
|
|
( 2)
|
Net income
|
266
|
|
|
127
|
|
439
|
|
349
|
Net income
attributable to noncontrolling interests
|
( 22)
|
|
|
( 26)
|
|
( 65)
|
|
( 74)
|
Net income
attributable to Crown Holdings
|
$244
|
|
|
$101
|
|
$374
|
|
$275
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Crown Holdings
common shareholders:
|
|
|
|
|
|
|
|
|
Basic
|
$1.78
|
|
|
$0.73
|
|
$2.73
|
|
$1.96
|
|
|
|
|
|
|
|
|
|
Diluted
|
$1.76
|
|
|
$0.73
|
|
$2.70
|
|
$1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
137,378,646
|
|
|
137,821,990
|
|
137,148,914
|
|
140,484,130
|
Diluted
|
138,662,223
|
|
|
139,154,205
|
|
138,435,783
|
|
141,873,439
|
Actual common shares
outstanding
|
138,907,411
|
|
|
138,047,748
|
|
138,907,411
|
|
138,047,748
|
|
|
|
|
|
|
|
|
(1) A reconciliation from
gross profit to segment income is found on the following page.
Consolidated Supplemental Financial Data
(Unaudited)
(in millions)
Reconciliation from Gross Profit to Segment Income
The Company views segment income, as defined below, as a
principal measure of performance of its operations and for the
allocation of resources. Segment income is defined by the
Company as gross profit excluding the impact of fair value
adjustments to inventory acquired in an acquisition and the timing
impact of hedge ineffectiveness, less selling and administrative
expense. A reconciliation from gross profit to segment income
for the three and nine months ended September 30, 2014 and 2013 follows:
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Gross
profit
|
$
|
422
|
|
$
|
394
|
|
$
|
1,095
|
|
$
|
1,068
|
|
Fair value adjustment
to inventory (1)
|
|
4
|
|
|
|
|
|
19
|
|
|
|
|
Impact of hedge
ineffectiveness (1)
|
|
(3)
|
|
|
|
|
|
1
|
|
|
|
|
Selling and
administrative expense
|
|
(95)
|
|
|
(113)
|
|
|
(302)
|
|
|
(319)
|
|
Segment
income
|
$
|
328
|
|
$
|
281
|
|
$
|
813
|
|
$
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included in cost of products
sold.
|
|
|
Segment
Information
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
Net
Sales
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Beverage
|
|
$
|
570
|
|
$
|
583
|
|
$
|
1,713
|
|
$
|
1,717
|
|
North America
Food
|
|
|
236
|
|
|
249
|
|
|
628
|
|
|
652
|
|
European
Beverage
|
|
|
474
|
|
|
481
|
|
|
1,358
|
|
|
1,344
|
|
European
Food
|
|
|
787
|
|
|
543
|
|
|
1,715
|
|
|
1,349
|
|
Asia
Pacific
|
|
|
310
|
|
|
300
|
|
|
924
|
|
|
877
|
|
Total reportable
segments
|
|
|
2,377
|
|
|
2,156
|
|
|
6,338
|
|
|
5,939
|
|
Non-reportable
segments
|
|
|
217
|
|
|
233
|
|
|
632
|
|
|
646
|
|
Total net
sales
|
|
$
|
2,594
|
|
$
|
2,389
|
|
$
|
6,970
|
|
$
|
6,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Beverage
|
|
$
|
77
|
|
$
|
83
|
|
$
|
241
|
|
$
|
244
|
|
North America
Food
|
|
|
40
|
|
|
26
|
|
|
107
|
|
|
98
|
|
European
Beverage
|
|
|
81
|
|
|
82
|
|
|
223
|
|
|
211
|
|
European
Food
|
|
|
107
|
|
|
63
|
|
|
196
|
|
|
134
|
|
Asia
Pacific
|
|
|
38
|
|
|
32
|
|
|
108
|
|
|
100
|
|
Total reportable
segments
|
|
|
343
|
|
|
286
|
|
|
875
|
|
|
787
|
|
Non-reportable
segments
|
|
|
26
|
|
|
31
|
|
|
72
|
|
|
84
|
|
Corporate and other
unallocated items
|
|
|
(41)
|
|
|
(36)
|
|
|
(134)
|
|
|
(122)
|
|
Total segment
income
|
|
$
|
328
|
|
$
|
281
|
|
$
|
813
|
|
$
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Supplemental Data
(Unaudited)
(in millions, except per share data)
Reconciliation from Net Income and Income Per Diluted Common
Share to Net Income before Certain Items and Income Per Diluted
Common Share before Certain Items
The following table reconciles reported net income and diluted
earnings per share attributable to the Company to net income before
certain items and income per diluted common share before certain
items, as used elsewhere in this release.
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended September
30,
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Crown Holdings, as reported
|
$
|
244
|
|
$
|
101
|
|
|
$
|
374
|
|
$
|
275
|
|
Items, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge ineffectiveness
(1)
|
|
(2)
|
|
|
|
|
|
|
1
|
|
|
|
|
Fair value adjustment to
inventory (2)
|
|
3
|
|
|
|
|
|
|
13
|
|
|
|
|
Restructuring and other
(3)
|
|
6
|
|
|
26
|
|
|
|
82
|
|
|
33
|
|
Loss from early
extinguishment of debt (4)
|
|
27
|
|
|
|
|
|
|
27
|
|
|
28
|
|
Incomes taxes
(5)
|
|
(90)
|
|
|
18
|
|
|
|
(90)
|
|
|
18
|
|
Net income before the
above items
|
$
|
188
|
|
$
|
145
|
|
|
$
|
407
|
|
$
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per diluted
common share as reported
|
$
|
1.76
|
|
$
|
0.73
|
|
|
$
|
2.70
|
|
$
|
1.94
|
|
Income per diluted
common share before the above items
|
$
|
1.36
|
|
$
|
1.04
|
|
|
$
|
2.94
|
|
$
|
2.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate as
reported
|
|
(18.2%)
|
|
|
34.4%
|
|
|
|
8.7%
|
|
|
29.4%
|
|
Effective tax rate
before the above items
|
|
21.6%
|
|
|
23.9%
|
|
|
|
24.6%
|
|
|
25.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before certain items, income per diluted common share
before certain items and the effective tax rate before certain
items are non-GAAP measures and are not meant to be considered in
isolation or as a substitute for net income, income per diluted
common share and effective tax rates determined in accordance with
U.S. GAAP. The Company believes these non-GAAP measures are
useful in evaluating the performance of the Company's ongoing
business.
(1) In the third quarter and first nine months of 2014,
the Company recorded income of $3
million ($2 million net of
tax) and a charge of $1 million
($1 million net of tax) in cost of
products sold related to hedge ineffectiveness caused primarily by
volatility in the metal premium component of aluminum prices.
This ineffectiveness creates a timing issue whereby the Company is
required to recognize a portion of its unrealized hedging gains or
losses immediately in earnings rather than when the amounts are
subsequently realized and passed through to customers in the form
of adjusted selling prices.
(2) In the third quarter and first nine months of 2014,
the Company recorded charges of $4
million ($3 million net of
tax) and $19 million ($13 million net of tax) in cost of products
sold for fair value adjustments related to the sale of
inventory acquired in its acquisition of Mivisa.
(3) In the third quarter and first nine months of 2014,
the Company recorded restructuring and other charges of
$11 million ($9 million net of tax) and $38 million ($32
million net of tax) for the closure of a food plant,
incremental costs incurred due to an ongoing labor dispute in the
Company's Americas Beverage segment and other costs related to
previously announced restructuring actions. In the third
quarter and first nine months of 2013, the Company recorded
restructuring and other charges of $33
million ($28 million net of
tax) and $41 million ($35 million net of tax) for costs related to
restructuring actions.
In the third quarter and first nine months of 2014, the Company
recorded gains of $3 million
($3 million net of tax) and charges
of $53 million ($50 million net of tax) primarily for asset sales
and impairments related to the divestment of certain operations and
transaction costs incurred in connection with its acquisition of
Mivisa. In the third quarter of 2013, the Company recorded
gains on asset sales of $2 million
($2 million net of tax).
(4) In the third quarter of 2014, the Company recorded a
charge of $34 million ($27 million net of tax) for premiums paid and the
write off of deferred financing fees in connection with the
redemption of its outstanding €500 million senior notes due
2018. In the first quarter of 2013, the Company recorded a
charge of $38 million ($28 million net of tax) in connection with the
redemption of its outstanding $400
million senior notes.
(5) In the third quarter of 2014, the Company recorded an income
tax benefit of $90 million in
connection with the reversal of tax valuation allowances in
France. In the third quarter of
2013, the Company recorded tax charges of $18 million to reduce the value of its deferred
tax assets due to a change in U.K. corporate income tax rates, and
to recognize the impact of a new tax law in Greece that eliminates a Company's ability to
maintain tax free reserves.
Consolidated
Balance Sheets (Condensed & Unaudited)
(in
millions)
|
September
30,
|
2014
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
380
|
|
|
$
|
236
|
|
|
Receivables, net
|
|
|
1,385
|
|
|
|
1,459
|
|
|
Inventories
|
|
|
1,473
|
|
|
|
1,331
|
|
|
Prepaid expenses and other current assets
|
|
|
370
|
|
|
|
218
|
|
|
Total current assets
|
|
|
3,608
|
|
|
|
3,244
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and
intangibles
|
|
|
3,067
|
|
|
|
2,010
|
|
|
Property, plant and
equipment, net
|
|
|
2,447
|
|
|
|
2,097
|
|
|
Other non-current
assets
|
|
|
695
|
|
|
|
691
|
|
|
Total
|
|
$
|
9,817
|
|
|
$
|
8,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
157
|
|
|
$
|
363
|
|
|
Current maturities of long-term debt
|
|
|
90
|
|
|
|
172
|
|
|
Accounts payable and
accrued liabilities
|
|
|
2,519
|
|
|
|
2,179
|
|
|
Total current liabilities
|
|
|
2,766
|
|
|
|
2,714
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt,
excluding current maturities
|
|
|
5,200
|
|
|
|
3,718
|
|
|
Other non-current
liabilities
|
|
|
1,303
|
|
|
|
1,429
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
278
|
|
|
|
285
|
|
|
Crown Holdings
shareholders' equity/(deficit)
|
|
|
270
|
|
|
(
|
104)
|
|
|
Total
equity
|
|
|
548
|
|
|
|
181
|
|
|
Total
|
|
$
|
9,817
|
|
|
$
|
8,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: In accordance with applicable accounting
standards, prior year amounts have been revised to account for
final purchase accounting adjustments from the acquisition of
Superior Multi-Packaging in the fourth quarter of 2012.
Consolidated
Statements of Cash Flows (Condensed & Unaudited)
(in
millions)
|
Nine months ended
September 30,
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
439
|
|
|
$
|
349
|
|
|
Depreciation and
amortization
|
|
|
135
|
|
|
|
98
|
|
|
Restructuring and other
|
|
|
91
|
|
|
|
39
|
|
|
Pension expense
|
|
|
41
|
|
|
|
58
|
|
|
Pension contributions
|
|
(
|
63)
|
|
|
(
|
63)
|
|
|
Stock-based
compensation
|
|
|
18
|
|
|
|
17
|
|
|
Working capital changes and
other
|
|
(
|
652)
|
|
|
(
|
622)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by/(used for) operating activities
(A)
|
|
|
9
|
|
|
(
|
124)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(
|
212)
|
|
|
(
|
181)
|
|
|
Purchase of
business
|
|
(
|
733)
|
|
|
|
|
|
|
Insurance
proceeds
|
|
|
|
|
|
|
8
|
|
|
Proceeds from sale of
assets and divestitures
|
|
|
31
|
|
|
|
16
|
|
|
Other
|
|
|
2
|
|
|
(
|
21)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing activities
|
|
(
|
912)
|
|
|
(
|
178)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
Net change in
debt
|
|
|
790
|
|
|
|
549
|
|
|
Purchase of noncontrolling
interests
|
|
(
|
93)
|
|
|
|
|
|
|
Debt issue costs
|
|
(
|
41)
|
|
|
|
|
|
|
Dividends paid to
noncontrolling interests
|
|
(
|
45)
|
|
|
(
|
65)
|
|
|
Common stock
repurchased
|
|
(
|
2)
|
|
|
(
|
300)
|
|
|
Other, net
|
|
(
|
3)
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
606
|
|
|
|
187
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(
|
12)
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
(
|
309)
|
|
|
(
|
114)
|
|
|
Cash and cash
equivalents at January 1
|
|
|
689
|
|
|
|
350
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at September 30
|
|
$
|
380
|
|
|
$
|
236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________________________________________________________________________________________________________
(A) Free cash flow is defined by the Company
as net cash provided by/used for operating activities less capital
expenditures and certain other items. A reconciliation from net
cash provided by/used for operating activities to free cash flow
for the three and nine months ended September 30, 2014 and 2013 follows:
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net cash provided
by/(used for) operating activities
|
$126
|
|
$127
|
|
$ 9
|
|
($124)
|
Premiums paid to
retire debt early
|
28
|
|
|
|
28
|
|
23
|
Adjusted net cash
provided by/(used for) operating activities
|
154
|
|
127
|
|
37
|
|
( 101)
|
Capital
expenditures
|
( 63)
|
|
( 57)
|
|
( 212)
|
|
( 181)
|
Insurance proceeds
from Thailand flooding
|
|
|
|
|
|
|
8
|
Free cash
flow
|
$ 91
|
|
$ 70
|
|
($175)
|
|
($274)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Crown Holdings, Inc.