Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2019 shares
Document and Entity Information
Entity Registrant Name	OWENS-ILLINOIS GROUP, INC.
Entity Central Index Key	0000812233
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2019
Entity File Number	33-13061
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	34-1559348
Entity Address, Address Line One	One Michael Owens Way
Entity Address, City or Town	Perrysburg
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43551
City Area Code	567
Local Phone Number	336-5000
Title of 12(b) Security	common stock, par value $.01
No Trading Symbol Flag	true
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	100
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

CONSOLIDATED RESULTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
CONSOLIDATED RESULTS OF OPERATIONS - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED RESULTS OF OPERATIONS
Net sales	$ 1,756	$ 1,772	$ 3,393	$ 3,508
Revenue, Product and Service [Extensible List]	Net sales	Net sales	Net sales	Net sales
Cost of goods sold	$ (1,420)	$ (1,426)	$ (2,760)	$ (2,843)
Gross profit	336	346	633	665
Selling and administrative expense	(116)	(126)	(231)	(252)
Research, development and engineering expense	(18)	(17)	(34)	(33)
Interest expense, net	(68)	(74)	(132)	(136)
Equity earnings	19	21	38	38
Other expense, net	(55)	(72)	(65)	(69)
Earnings from continuing operations before income taxes	98	78	209	213
Provision for income taxes	(27)	(22)	(54)	(54)
Earnings from continuing operations	71	56	155	159
Loss from discontinued operations	(1)		(1)	(1)
Net earnings	70	56	154	158
Net earnings attributable to noncontrolling interests	(5)	(6)	(10)	(11)
Net earnings attributable to the Company	65	50	144	147
Amounts attributable to the Company:
Earnings from continuing operations	66	50	145	148
Loss from discontinued operations	(1)		(1)	(1)
Net earnings attributable to the Company	$ 65	$ 50	$ 144	$ 147

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS)
Net earnings	$ 70	$ 56	$ 154	$ 158
Other comprehensive income (loss):
Foreign currency translation adjustments	1	(268)	50	(141)
Pension and other postretirement benefit adjustments, net of tax	16	29	22	36
Change in fair value of derivative instruments, net of tax	(9)	(1)	(4)	(6)
Other comprehensive income (loss)	8	(240)	68	(111)
Total comprehensive income (loss)	78	(184)	222	47
Comprehensive income (loss) attributable to noncontrolling interests	7	9	(1)	(2)
Comprehensive income (loss) attributable to the Company	$ 85	$ (175)	$ 221	$ 45

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 371	$ 512	$ 365
Trade receivables, net of allowance of $34 million, $35 million, and $35 million at June 30, 2019, December 31, 2018 and June 30, 2018	1,275	549	1,026
Inventories	1,015	1,018	985
Prepaid expenses and other current assets	282	278	248
Total current assets	2,943	2,357	2,624
Property, plant and equipment, net	3,216	3,085	3,025
Goodwill	2,527	2,513	2,533
Intangibles, net	422	400	419
Other assets	1,615	1,344	1,217
Total assets	10,723	9,699	9,818
Current liabilities:
Accounts payable	1,074	1,321	1,088
Short-term loans and long-term debt due within one year	96	160	291
Other liabilities	624	566	576
Other liabilities - discontinued operations			115
Total current liabilities	1,794	2,047	2,070
Long-term debt	6,235	5,181	5,377
Other liabilities	1,105	969	916
Share owners' equity	1,589	1,502	1,455
Total liabilities and share owners' equity	$ 10,723	$ 9,699	$ 9,818

CONDENSED CONSOLIDATED CASH FLOWS - USD ($) $ in Millions	6 Months Ended
CONDENSED CONSOLIDATED CASH FLOWS - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net earnings	$ 154	$ 158
Loss from discontinued operations	1	1
Non-cash charges
Depreciation and amortization	253	254
Pension expense	16	17
Restructuring, asset impairment and related charges	32	70
Pension settlement charges	2
Cash payments
Pension contributions	(19)	(18)
Cash paid for restructuring activities	(29)	(12)
Change in components of working capital	(939)	(586)
Other, net (a)	(30)	(8)
Cash utilized in operating activities	(559)	(124)
Cash utilized in discontinued operating activities	(1)	(1)
Total cash utilized in operating activities	(560)	(125)
Cash flows from investing activities:
Cash payments for property, plant and equipment	(233)	(273)
Acquisitions, net of cash acquired	(157)
Contributions and advances to joint ventures	(22)	(25)
Net cash proceeds on disposal of assets	1	9
Other, net	1	2
Total cash utilized in investing activities	(410)	(287)
Cash flows from financing activities:
Changes in borrowings, net	970	437
Distributions to parent	(157)	(121)
Payment of finance fees	(8)	(12)
Distributions to noncontrolling interests	(7)	(8)
Net cash proceeds for hedging activity	28
Other	(3)
Cash provided by financing activities	823	296
Effect of exchange rate fluctuations on cash	6	(11)
Decrease in cash	(141)	(127)
Cash at beginning of period	512	492
Cash at end of period	$ 371	$ 365

Segment Information

6 Months Ended

Jun. 30, 2019

Segment Information

Segment Information

2. Segment Information

The Company has three reportable segments and three operating segments based on its geographic locations: Americas, Europe and Asia Pacific. These three 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 is a non-GAAP financial measure that 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 net sales and 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.

Financial information for the three and six months ended June 30, 2019 and 2018 regarding the Company’s reportable segments is as follows:


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Net sales:
Americas	$	934	$	930	$	1,815	$	1,838
Europe		650		674		1,246		1,317
Asia Pacific		152		153		303		326
Reportable segment totals		1,736		1,757		3,364		3,481
Other		20		15		29		27
Net sales	$	1,756	$	1,772	$	3,393	$	3,508


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Segment operating profit:
Americas	$	144	$	152	$	257	$	299
Europe		90		101		169		173
Asia Pacific		2		2		10		7
Reportable segment totals		236		255		436		479
Items excluded from segment operating profit:
Retained corporate costs and other		(28)		(30)		(53)		(57)
Restructuring, asset impairment and other		(42)		(73)		(42)		(73)
Interest expense, net		(68)		(74)		(132)		(136)
Earnings from continuing operations before income taxes	$	98	$	78	$	209	$	213

Financial information regarding the Company’s total assets is as follows:


	June 30,		December 31,		June 30,
	2019		2018		2018
Total assets:
Americas	$	5,994	$	5,497	$	5,402
Europe		3,342		3,036		3,232
Asia Pacific		1,045		918		981

Reportable segment totals		10,381		9,451		9,615
Other		342		248		203
Consolidated totals	$	10,723	$	9,699	$	9,818

Revenue

6 Months Ended

Jun. 30, 2019

Revenue

Revenue

3. Revenue

Revenue is recognized when obligations under the terms of the Company’s contracts and related purchase orders with its customers are satisfied. This occurs with the transfer of control of glass containers, which primarily takes place when products are shipped from the Company’s manufacturing or warehousing facilities to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimated provisions for rebates, discounts, returns and allowances. Sales, value added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company’s payment terms are based on customary business practices and can vary by customer type. The term between invoicing and when payment is due is not significant. Also, the Company elected to account for shipping and handling costs as a fulfillment cost at the time of shipment.

For the three and six month periods ended June 30, 2019 and June 30, 2018, the Company had no material bad debt expense and there were no material contract assets, contract liabilities or deferred contract costs recorded on the Condensed Consolidated Balance Sheet. For the three and six month periods ended June 30, 2019 and June 30, 2018, revenue recognized from prior periods (for example, due to changes in transaction price) was not material.

The following tables for the three months ended June 30, 2019 and 2018 disaggregates the Company’s revenue by customer end use:


	Three months ended June 30, 2019
	Americas		Europe		Asia Pacific		Total

Alcoholic beverages (beer, wine, spirits)	$	590	$	474	$	105	$	1,169
Food and other		191		109		29		329
Non-alcoholic beverages		153		67		18		238
Reportable segment totals	$	934	$	650	$	152	$	1,736
Other								20
Net sales							$	1,756


	Three months ended June 30, 2018
	Americas		Europe		Asia Pacific		Total

Alcoholic beverages (beer, wine, spirits)	$	585	$	493	$	113	$	1,191
Food and other		197		112		23		332
Non-alcoholic beverages		148		69		17		234
Reportable segment totals	$	930	$	674	$	153	$	1,757
Other								15
Net sales							$	1,772

The following tables for the six months ended June 30, 2019 and 2018 disaggregates the Company’s revenue by customer end use:


	Six months ended June 30, 2019
	Americas		Europe		Asia Pacific		Total

Alcoholic beverages (beer, wine, spirits)	$	1,153	$	907	$	214	$	2,274
Food and other		372		211		54		637
Non-alcoholic beverages		290		128		35		453
Reportable segment totals	$	1,815	$	1,246	$	303	$	3,364
Other								29
Net sales							$	3,393

	Six months ended June 30, 2018
	Americas		Europe		Asia Pacific		Total

Alcoholic beverages (beer, wine, spirits)	$	1,161	$	964	$	240	$	2,365
Food and other		386		224		47		657
Non-alcoholic beverages		291		129		39		459
Reportable segment totals	$	1,838	$	1,317	$	326	$	3,481
Other								27
Net sales							$	3,508

Inventories

6 Months Ended

Jun. 30, 2019

Inventories

Inventories

4. Inventories

Major classes of inventory at June 30, 2019, December 31, 2018 and June 30, 2018 are as follows:


	June 30,		December 31,		June 30,
	2019		2018		2018
Finished goods	$	838	$	849	$	821
Raw materials		131		125		123
Operating supplies		46		44		41
	$	1,015	$	1,018	$	985

Derivative Instruments

6 Months Ended

Jun. 30, 2019

Derivative Instruments

Derivative Instruments

5. Derivative Instruments

The Company has certain derivative assets and liabilities, which consist of natural gas forwards, foreign exchange option and forward contracts, interest rate swaps and cross-currency swaps. The valuation of these instruments is determined primarily using the income approach, including discounted cash flow analysis on the expected cash flows of each derivative. Natural gas forward rates, foreign exchange rates and interest rates are the significant inputs into the valuation models. The Company also evaluates counterparty risk in determining fair values. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. 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.

Commodity Forward Contracts Designated as Cash Flow Hedges

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.

An unrecognized gain of $2 million at June 30, 2019, an unrecognized gain of $1 million at December 31, 2018 and an unrecognized gain of $7 million at June 30, 2018 related to the commodity forward contracts were included in Accumulated OCI, and will be reclassified into earnings in the period when the commodity forward contracts expire.

Foreign Exchange Derivative Contracts Not Designated as Hedging Instruments

The Company uses 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 also uses foreign exchange agreements to offset the foreign currency risk for receivables and payables, including intercompany receivables, payables, and loans, not denominated in, or indexed to, their functional currencies.

Cash Flow Hedges of Foreign Exchange Risk

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 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 foreign exchange risk.

During the second quarter of 2019, the Company terminated a portion of its cross-currency swaps, which resulted in a $15 million cash inflow recognized in the Cash flows from financing activities section of the Condensed Consolidated Cash Flows.

An unrecognized loss of $18 million at June 30, 2019, an unrecognized loss of $9 million at December 31, 2018 and an unrecognized loss of $8 million at June 30, 2018, related to these cross-currency swaps, were included in Accumulated OCI, and will be reclassified into earnings within the next twelve months.

Interest Rate Swaps Designated as Fair Value Hedges

The Company enters into interest rate swaps in order to maintain a capital structure containing targeted amounts of fixed and floating-rate debt and manage interest rate risk. The Company’s fixed-to-variable interest rate swaps are accounted for as fair value hedges. The relevant terms of the swap agreements match the corresponding terms of the notes and therefore there is no hedge ineffectiveness. The Company recorded the net of the fair market values of the swaps as a long-term liability and short-term asset, along with a corresponding net decrease in the carrying value of the hedged debt.

During the second quarter of 2019, the Company terminated a portion of its interest rate swaps, which resulted in a $13 million cash inflow recognized in the Cash flows from financing activities section of the Condensed Consolidated Cash Flows.

Cash Flow Hedges of Interest Rate Risk

The Company enters into interest rate swaps in order to maintain a capital structure containing targeted amounts of fixed and floating-rate debt and manage interest rate risk. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments. These interest rate swap agreements were used to hedge the variable cash flows associated with variable-rate debt.

An unrecognized loss of $1 million at June 30, 2019 and an unrecognized loss of less than $1 million at December 31, 2018, related to these interest rate swaps, was included in Accumulated OCI, and will be reclassified into earnings within the next twelve months.

Net Investment Hedges

The Company is exposed to fluctuations in foreign exchange rates on investments it holds in non-U.S. subsidiaries and uses cross-currency swaps to partially hedge this exposure.

An unrecognized gain of $5 million at June 30, 2019 and an unrecognized gain of $4 million at year ended December 31, 2018, related to these net investment hedges, was included in Accumulated OCI, and will be reclassified into earnings within the next twelve months.

Balance Sheet Classification

The following table shows the amount and classification (as noted above) of the Company’s derivatives at June 30, 2019, December 31, 2018 and June 30, 2018:


	Fair Value of						Fair Value of
	Hedge Assets						Hedge Liabilities
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
	2019		2018		2018		2019		2018		2018
Derivatives designated as hedging instruments:
Commodity forward contracts (a)	$	2	$	1	$	7	$	1	$	-	$	-
Interest rate swaps - fair value hedges (b)		15		6		6				1		8
Cash flow hedges of foreign exchange risk (c)		20		10		5		30		1		12
Interest rate swaps - cash flow hedges (d)		1						2
Net investment hedges (e)		6		6				6		8
Total derivatives accounted for as hedges	$	44	$	23	$	18	$	39	$	10	$	20
Derivatives not designated as hedges:
Foreign exchange derivative contracts (f)		2		2		2		1		2		2
Total derivatives	$	46	$	25	$	20	$	40	$	12	$	22


Current	$	13	$	19	$	13	$	3	$	3	$	3
Noncurrent		33		6		7		37		9		19
Total derivatives	$	46	$	25	$	20	$	40	$	12	$	22

(a) The notional amounts of the commodity forward contracts were $19 million, $21 million and $21 million at June 30, 2019, December 31, 2018 and June 30, 2018, respectively. The maximum maturity dates were in 2020 for all three periods.

(b) The notional amounts of the interest rate swaps designated as fair value hedges were €725 million at June 30, 2019, December 31, 2018 and June 30, 2018, respectively. The maximum maturity dates were in 2024 for all three periods.

(c) The notional amounts of the cash flow hedges of foreign exchange risk were $1.210 billion, $587 million and $310 million at June 30, 2019, December 31, 2018 and June 30, 2018, respectively. The maximum maturity dates were in 2023 for all three periods.

(d) The notional amounts of the interest rate swaps designated as cash flow hedges were $480 million at June 30, 2019 and $180 million at June 30, 2018 and December 31, 2018. Maximum maturity dates were 2021 at June 30, 2019 and 2020 at June 30, 2018 and December 31, 2018, respectively.

(e) The notional amounts of the net investment hedges were €160 million and maximum maturity dates were 2020 at June 30, 2019 and December 31, 2018.

(f) The notional amounts of the foreign exchange derivative contracts were $292 million, $470 million and $380 million and maximum maturity dates were 2019, 2019, and 2018 at June 30, 2019, December 31, 2018 and June 30, 2018, respectively.


	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Three months ended June 30,				Three months ended June 30,
Derivatives designated as hedging instruments:	2019		2018		2019		2018
Cash Flow Hedges
Commodity forward contracts (a)	$	(1)	$	4	$	—	$	—
Cash flow hedges of foreign exchange risk (b)		(5)		14		(2)		18
Cash flow hedges of interest rate risk (c)		(1)
Net Investment Hedges
Net Investment Hedges		5				(4)
	$	(2)	$	18	$	(6)	$	18

	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Six months ended June 30,				Six months ended June 30,
Derivatives designated as hedging instruments:	2019		2018		2019		2018
Cash Flow Hedges
Commodity forward contracts (a)	$	1	$	5	$	(1)	$	(1)
Cash flow hedges of foreign exchange risk (b)		2		1		(12)		10
Cash flow hedges of interest rate risk (c)		(1)
Net Investment Hedges
Net Investment Hedges		5				(4)
	$	7	$	6	$	(17)	$	9

	Amount of Gain (Loss) Recognized in Other income (expense), net				Amount of Gain (Loss) Recognized in Other income (expense), net
	Three months ended June 30,				Six months ended June 30,
Derivatives not designated as hedges:	2019		2018		2019		2018
Foreign exchange derivative contracts	$	1	$	—	$	7	$	—

(1) Gains and losses reclassified from accumulated OCI and recognized in income are recorded to (a) cost of goods sold, (b) other expense, net or (c) interest expense, net.

Restructuring Accruals

6 Months Ended

Jun. 30, 2019

Restructuring Accruals

Restructuring Accruals

6. Restructuring Accruals

Selected information related to the restructuring accruals for the three months ended June 30, 2019 and 2018 is as follows:


	Employee		Asset		Other		Total
	Costs		Impairment		Exit Costs		Restructuring
Balance at April 1, 2019	$	34	$		$	19	$	53
Charges		27				5		32
Net cash paid, principally severance and related benefits		(11)				(3)		(14)
Other, including foreign exchange translation						(1)		(1)
Balance at June 30, 2019	$	50	$	—	$	20	$	70


	Employee		Asset		Other		Total
	Costs		Impairment		Exit Costs		Restructuring
Balance at April 1, 2018	$	63	$		$	17	$	80
Charges		15		53		2		70
Write-down of assets to net realizable value				(53)				(53)
Net cash paid, principally severance and related benefits		(5)				(1)		(6)
Other, including foreign exchange translation		(2)				(2)		(4)
Balance at June 30, 2018	$	71	$	—	$	16	$	87

Selected information related to the restructuring accruals for the six months ended June 30, 2019 and 2018 is as follows:


	Employee		Asset		Other		Total
	Costs		Impairment		Exit Costs		Restructuring
Balance at January 1, 2019	$	47	$		$	22	$	69
Charges		27				5		32
Net cash paid, principally severance and related benefits		(24)				(5)		(29)
Other, including foreign exchange translation						(2)		(2)
Balance at June 30, 2019	$	50	$	—	$	20	$	70


	Employee		Asset		Other		Total
	Costs		Impairment		Exit Costs		Restructuring
Balance at January 1, 2018	$	67	$		$	18	$	85
Charges		15		53		2		70
Write-down of assets to net realizable value				(53)				(53)
Net cash paid, principally severance and related benefits		(10)				(2)		(12)
Other, including foreign exchange translation		(1)				(2)		(3)
Balance at June 30, 2018	$	71	$	—	$	16	$	87

When a decision is made to take restructuring actions, the Company manages and accounts for them programmatically apart from the on-going operations of the business. Information related to major programs are presented separately while minor initiatives are presented on a combined basis. As of June 30, 2019 and 2018, no major restructuring programs were in effect.

In the three and six months ended June 30, 2019, the Company implemented several discrete restructuring initiatives and recorded restructuring and other charges of $32 million. These charges consisted of employee costs such as severance and benefit related costs and other exit costs primarily related to a severance program for certain salaried employees at the Company’s corporate and America’s headquarters. These charges were recorded to Selling and administrative expense ($2 million) and Other expense, net ($30 million) on the Consolidated Results of Operations. The Company expects that the majority of the remaining cash expenditures related to the accrued employee costs will be paid out by the end of 2019.

In the three and six months ended June 30, 2018, the Company implemented several discrete restructuring initiatives and recorded restructuring, asset impairment and other charges of $70 million. These charges consisted of employee costs, write-down of assets and other exit costs primarily related to a plant closure in the Americas region. These restructuring charges were discrete actions and are expected to approximate the total cumulative costs for those actions as no

significant additional costs are expected to be incurred. These restructuring actions primarily relate to capacity curtailments and the Company plans to reallocate the products produced to other facilities. These charges were recorded to Cost of goods sold ($5 million) and Other expense, net ($65 million) on the Condensed Consolidated Results of Operations. The Company expects that the majority of the remaining cash expenditures related to the above charges will be paid out by the end of 2019.

The Company’s decisions to curtail selected production capacity have resulted in write downs of certain long-lived assets to the extent their carrying value exceeded fair value or fair value less cost to sell. The Company classified the assumptions used to determine the fair value of the impaired assets in the period that the measurement was taken as Level 3 (third party appraisal) in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. For the asset impairments recorded through June 30, 2019 and 2018, the remaining carrying value of the impaired assets was approximately $0 and $3 million, respectively.

Pension Benefit Plans

6 Months Ended

Jun. 30, 2019

Pension Benefit Plans

Pension Benefit Plans

7. Pension Benefit Plans

The components of the net periodic pension cost for the three months ended June 30, 2019 and 2018 are as follows:


	U.S.				Non-U.S.
	2019		2018		2019		2018
Service cost	$	3	$	4	$	3	$	3
Interest cost		15		15		7		8
Expected asset return		(22)		(25)		(11)		(14)
Amortization of actuarial loss		10		13		3		3
Net periodic pension cost	$	6	$	7	$	2	$	—

The components of the net periodic pension cost for the six months ended June 30, 2019 and 2018 are as follows:


	U.S.				Non-U.S.
	2019		2018		2019		2018
Service cost	$	6	$	7	$	6	$	7
Interest cost		30		30		15		16
Expected asset return		(44)		(49)		(22)		(27)
Amortization of actuarial loss		20		26		5		7
Net periodic pension cost	$	12	$	14	$	4	$	3

Leases

6 Months Ended

Jun. 30, 2019

Leases

Leases

8. Leases

In the first quarter of 2019, the Company adopted ASC 842, Leases, and selected the modified retrospective transition as of the effective date of January 1, 2019 (the effective date method). Under the effective date method, financial results reported in periods prior to 2019 are unchanged.

The Company determines if an arrangement is a lease at inception. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The Company uses an estimated incremental borrowing rate at the lease commencement date to determine the present value of lease payments when the implicit rate is not readily determinable in the lease. The Company’s incremental borrowing rate reflects a fully secured rate based on recent debt issuances, the credit rating of the Company, changes in currency, repayment timing of the lease, as well as publicly available data for instruments with similar characteristics when calculating incremental borrowing rates.

Certain lease agreements include terms with options to extend the lease, however none of these have been recognized in the Company’s right-of-use assets or lease liabilities since those options were not reasonably certain to be exercised. Leases with a term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term. The Company’s lease agreements include lease payments that are largely fixed, do not contain material residual value guarantees or variable lease payments and no lease transactions with related parties. For the three and six months ended June 30, 2019, the Company’s lease costs associated with leases with terms less than 12 months or variable lease costs were immaterial. Certain leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company’s leases do not contain restrictions or covenants that restrict the Company from incurring other financial obligations.

The Company leases warehouses, office buildings and equipment under both operating and finance lease arrangements. Information related to leases is as follows:


	Three months ended		Six months ended
	June 30,		June 30,
	2019		2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets (included in Cost of goods sold and Selling and administrative expense)	$	2	$	3
Interest on lease liabilities (included in Interest expense, net)				1
Operating lease cost (included in Cost of goods sold and Selling and administrative expense)		21		42
Total lease cost	$	23	$	46


	Six months ended
	June 30,
	2019
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	21
Operating cash flows from finance leases		1
Financing cash flows from finance leases		3
Right-of-use assets obtained in exchange for new operating lease liabilities		33

	June 30, 2019
Supplemental balance sheet information
Operating leases:
Operating lease right-of-use assets (included in Other assets)	$	196

Current operating lease liabilities (included in Other current liabilities)		67
Noncurrent operating lease liabilities (included in Other long-term liabilities)		129
Total operating lease liabilities	$	196

Finance leases:
Property, plant and equipment	$	74
Accumulated amortization		(30)
Property, plant and equipment, net		44

Current finance lease liabilities (included in Long-term debt due within one year)		6
Noncurrent finance lease liabilities (included in Long-term debt)		35
Total finance lease liabilities	$	41

Weighted-average remaining lease term (in years):
Operating leases		4.8
Finance leases		7.0
Weighted-average discount rate:
Operating leases		3.8
Finance leases		5.2


Maturity of lease liabilities		Operating leases		Finance leases
2019	$	39	$	5
2020		61		8
2021		37		8
2022		28		6
2023		18		6
2024 and thereafter		32		17
Total lease payments		215		50
Less: imputed interest		(19)		(9)
Total lease obligations	$	196	$	41

Minimum payments related to leases not yet commenced as of June 30, 2019	$	-	$	85

Income Taxes

6 Months Ended

Jun. 30, 2019

Income Taxes

Income Taxes

9. Income Taxes

The Company calculates its interim tax provision using the estimated annual effective tax rate (“EAETR”) methodology in accordance with ASC 740-270. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effect of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income or loss in each tax jurisdiction in which the Company operates. The tax effects of discrete items are recognized in the tax provision in the quarter they occur in accordance with GAAP. Depending on various factors such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. The Company’s annual effective tax rate may be affected by the mix of earnings in the U.S. and foreign jurisdictions and such factors as changes in tax laws, tax rates or regulations, changes in business, changing interpretation of existing tax laws or regulations, the finalization of tax audits and reviews, as well as other factors. As such, there can be significant volatility in interim tax provisions. The annual effective tax rate differs from the statutory U.S. Federal tax rate of 21% primarily because of varying non-U.S. tax rates.

The Company is currently under examination in various tax jurisdictions in which it operates, including Bolivia, Brazil, Canada, China, Colombia, France, Germany, Indonesia, and Italy. The years under examination range from 2004 through 2017. The Company has received tax assessments in excess of established reserves. The Company is contesting these tax assessments, and will continue to do so, including pursuing all available remedies such as appeals and litigation, if necessary. The Company believes that adequate provisions for all income tax uncertainties have been made. However, if tax assessments are settled against the Company at amounts in excess of established reserves, it could have a material impact on the Company’s results of operations, financial position or cash flows.

Debt

6 Months Ended

Jun. 30, 2019

Debt

Debt

10. Debt

The following table summarizes the long-term debt of the Company:


	June 30,		December 31,		June 30,
	2019		2018		2018
Secured Credit Agreement:
Revolving Credit Facility:
Revolving Loans	$	389	$		$
Term Loans:
Term Loan A		1,496
Previous Secured Credit Agreement:
Revolving Credit Facility:
Revolving Loans						397
Term Loans:
Term Loan A				897		908
Other secured debt		454		404		150
Senior Notes:
6.75%, due 2020 (€500 million)		567		570		580
4.875%, due 2021 (€330 million)		374		376		383
5.00%, due 2022		497		497		496
4.00%, due 2023		307		306		306
5.875%, due 2023		689		688		686
3.125%, due 2024 (€725 million)		845		825		833
6.375%, due 2025		296		295		295
5.375%, due 2025		298		297		297
Finance leases		41		45		50
Other		12		14		17
Total long-term debt		6,265		5,214		5,398
Less amounts due within one year		30		33		21
Long-term debt	$	6,235	$	5,181	$	5,377

The Company presents debt issuance costs in the balance sheet as a deduction of the carrying amount of the related debt liability.

On June 25, 2019, certain of the Company’s subsidiaries entered into a new Senior Secured Credit Facility (the “Agreement”), which amended and restated the previous credit agreement (the “Previous Agreement”). The proceeds from the Agreement were used to repay all outstanding amounts under the Previous Agreement. The Company recorded $2 million of additional interest charges for third party fees and the write-off of unamortized fees in the second quarter of 2019.

The Agreement provides for up to $3.0 billion of borrowings pursuant to term loans and revolving credit facilities. The term loans mature, and the revolving credit facilities terminate, in June 2024. At June 30, 2019, the Agreement includes a $300 million revolving credit facility, a $1.2 billion multicurrency revolving credit facility, and a $1.5 billion term loan A facility ($1,496 million net of debt issuance costs). At June 30, 2019, the Company had unused credit of $1.1 billion available under the Agreement. The weighted average interest rate on borrowings outstanding under the Agreement at June 30, 2019 was 3.71%.

The Agreement contains various covenants that restrict, among other things and subject to certain exceptions, the ability of the Company to incur certain indebtedness and liens, make certain investments, become liable under contingent obligations in certain defined instances only, make restricted payments, make certain asset sales within guidelines and

limits, engage in certain affiliate transactions, participate in sale and leaseback financing arrangements, alter its fundamental business, and amend certain subordinated debt obligations.

The Agreement also contains one financial maintenance covenant, a Total Leverage Ratio (the “Leverage Ratio”), that requires the Company not to exceed a ratio of 5.0x calculated by dividing consolidated total debt, less cash and cash equivalents, by Consolidated EBITDA, with such Leverage Ratio decreasing to 4.50x for the quarter ending December 31, 2020 and thereafter, as defined and described in the Agreement. The maximum Leverage Ratio is subject to an increase of 0.5x for (i) any fiscal quarter during which certain qualifying acquisitions (as specified in the Agreement) are consummated and (ii) the following three fiscal quarters, provided that the Leverage Ratio shall not exceed 5.0x. The Leverage Ratio could restrict the ability of the Company to undertake additional financing or acquisitions to the extent that such financing or acquisitions would cause the Leverage Ratio to exceed the specified maximum.

Failure to comply with these covenants and other customary restrictions could result in an event of default under the Agreement. In such an event, the Company could not request borrowings under the revolving facilities, and all amounts outstanding under the Agreement, together with accrued interest, could then be declared immediately due and payable. Upon the occurrence and for the duration of a payment event of default, an additional default interest rate equal to 2.0% per annum will apply to all overdue obligations under the Agreement. If an event of default occurs under the Agreement and the lenders cause all of the outstanding debt obligations under the Agreement to become due and payable, this would result in a default under a number of other outstanding debt securities and could lead to an acceleration of obligations related to these debt securities. As of June 30, 2019, the Company was in compliance with all covenants and restrictions in the Agreement. In addition, the Company believes that it will remain in compliance and that its ability to borrow funds under the Agreement will not be adversely affected by the covenants and restrictions.

The Leverage Ratio also determines pricing under the Agreement. The interest rate on borrowings under the Agreement is, at the Company’s option, the Base Rate or the Eurocurrency Rate, as defined in the Agreement, plus an applicable margin. The applicable margin is linked to the Leverage Ratio. The margins range from 1.00% to 1.50% for Eurocurrency Loans and from 0.00% to 0.50% for Base Rate Loans. In addition, a commitment fee is payable on the unused revolving credit facility commitments ranging from 0.20% to 0.30% per annum linked to the Leverage Ratio.

Obligations under the Agreement are secured by substantially all of the assets, excluding real estate and certain other excluded assets, of certain of the Company’s domestic subsidiaries and certain foreign subsidiaries. Such obligations are also secured by a pledge of intercompany debt and equity investments in certain of the Company’s domestic subsidiaries and, in the case of foreign obligations, of stock of certain foreign subsidiaries. All obligations under the Agreement are guaranteed by certain domestic subsidiaries of the Company, and certain foreign obligations under the Agreement are guaranteed by certain foreign subsidiaries of the Company.

In order to maintain a capital structure containing appropriate amounts of fixed and floating-rate debt, the Company has entered into a series of interest rate swap agreements. These interest rate swap agreements were accounted for as either fair value hedges or cash flow hedges (see Note 5).

The Company assesses its capital raising and refinancing needs on an ongoing basis and may enter into additional credit facilities and seek to issue equity and/or debt securities in the domestic and international capital markets if market conditions are favorable. Also, depending on market conditions, the Company may elect to repurchase portions of its debt securities in the open market.

The carrying amounts reported for certain long-term debt obligations subject to frequently redetermined interest rates, approximate fair value. Fair values for the Company’s significant fixed rate debt obligations are based on published market quotations, and are classified as Level 1 in the fair value hierarchy.

Fair values at June 30, 2019 of the Company’s significant fixed rate debt obligations are as follows:


	Principal		Indicated
	Amount		Market Price		Fair Value
Senior Notes:
6.75%, due 2020 (€500 million)	$	568	$	108.48	$	616
4.875%, due 2021 (€330 million)		375		108.35		406
5.00%, due 2022		500		102.95		515
5.875%, due 2023		700		107.36		752
4.00%, due 2023		310		100.37		311
3.125%, due 2024 (€725 million)		824		108.85		897
6.375%, due 2025		300		107.66		323
5.375%, due 2025		300		103.49		310

Contingencies

6 Months Ended

Jun. 30, 2019

Contingencies

Contingencies

11. Contingencies

Asbestos

From 1948 to 1958, one of OI Inc.'s former business units commercially produced and sold approximately $40 million of a high-temperature, calcium-silicate based pipe and block insulation material containing asbestos. OI Inc. sold its insulation business unit in April 1958. OI Inc. receives claims from individuals alleging bodily injury and death as a result of exposure to asbestos from this product (“Asbestos Claims”). Some Asbestos Claims are brought as personal injury lawsuits that typically allege various theories of liability, including negligence, gross negligence and strict liability and seek compensatory and, in some cases, punitive damages.

Predominantly, however, Asbestos Claims are presented to OI Inc. under administrative claims-handling agreements, which OI Inc. has in place with many plaintiffs’ counsel throughout the country (“Administrative Claims”). Administrative Claims require evaluation and negotiation regarding whether particular claimants qualify under the criteria established by the related claims-handling agreements. The criteria for Administrative Claims include verification of a compensable illness and a reasonable probability of exposure to a product manufactured by OI Inc.’s former business unit during its manufacturing period ending in 1958. Plaintiffs’ counsel present, and OI Inc. negotiates, Administrative Claims under these various agreements in differing quantities, at different times, and under a variety of conditions.

As of June 30, 2019, OI Inc. had approximately 1,020 asbestos lawsuits pending. These pending lawsuits do not include an estimate of potential Administrative Claims that may be presented under a claims-handling agreement due to the uncertainties around presentation timing, quantities, or qualification rates. OI Inc. considers Administrative Claims to be filed and disposed when they are accepted for payment.

The lack of uniform rules in lawsuit pleading practice, technical pleading requirements in some jurisdictions, local rules, and other factors cause considerable variation in the specific amounts of monetary damages asserted. In OI Inc.’s experience, the monetary relief alleged in a lawsuit bears little relationship to an Asbestos Claim’s merits or its disposition value. Rather, several variables, including but not limited to, the type and severity of the asbestos disease, medical history, and exposure to other disease-causing agents; the product identification evidence against OI Inc. and other co-defendants; the defenses available to OI Inc. and other co-defendants; the specific jurisdiction in which the claim is made; the applicable law; and the law firm representing the claimant, affect the value.

OI Inc. has also been a defendant in other Asbestos Claims involving maritime workers, medical monitoring, co-defendants’ third-party actions, and property damage allegations. Based upon its experience, OI Inc. believes that these categories of Asbestos Claims will not involve any material liability. Therefore, they are not included in the description of pending or disposed matters.

Since receiving its first Asbestos Claim, as of June 30, 2019, OI Inc. in the aggregate has disposed of approximately 400,800 Asbestos Claims at an average indemnity payment of approximately $10,000 per claim. OI Inc.’s asbestos indemnity payments have varied on a per-claim basis and are expected to continue to vary considerably over time. Asbestos-related cash payments for 2018, 2017, and 2016 were $105 million, $110 million, and $125 million, respectively. OI Inc.’s cash payments per claim disposed (inclusive of legal costs) were approximately $86,000, $83,000 and $71,000 for the years ended December 31, 2018, 2017, and 2016, respectively.

OI Inc.’s objective is to achieve, where possible, resolution of Asbestos Claims pursuant to claims-handling agreements. Failure of claimants to meet certain medical and product exposure criteria in claims-handling agreements generally has reduced the number of claims that would otherwise have been received by OI Inc. in the tort system. In addition, changes in jurisdictional dynamics, legislative acts, asbestos docket management and procedures, the substantive law, the co-defendant pool, and other external factors have affected lawsuit volume, claim volume, qualification rates, claim values, and related matters. Collectively, these variables generally have had the effect of increasing OI Inc.’s per-claim average indemnity payment over time.

Beginning with the initial liability of $975 million established in 1993, OI Inc. has accrued a total of approximately $5.0 billion through June 30, 2019, before insurance recoveries, for its asbestos-related liability. OI Inc.’s estimates of its liability have been significantly affected by, among other factors, the volatility of asbestos-related litigation in the United States, the significant number of co-defendants that have filed for bankruptcy, changes in mortality rates, the inherent uncertainty of future disease incidence and claiming patterns against OI Inc., the significant expansion of the types of defendants that are now sued in this litigation, and the continuing changes in the extent to which these defendants participate in the resolution of cases in which OI Inc. is also a defendant.

OI Inc. continues to monitor trends that may affect its ultimate liability and analyze the developments and variables likely to affect the resolution of Asbestos Claims against OI Inc. The material components of OI Inc.’s total accrued liability are determined by OI Inc. in connection with its annual comprehensive legal review and consist of the following estimates, to the extent it is probable that such liabilities have been incurred and can be reasonably estimated: (i) the liability for Asbestos Claims already asserted against OI Inc.; (ii) the liability for Asbestos Claims not yet asserted against OI Inc.; and (iii) the legal defense costs estimated to be incurred in connection with the Asbestos Claims already asserted and those Asbestos Claims OI Inc. believes will be asserted.

OI Inc. conducts an annual comprehensive legal review of its asbestos-related liabilities and costs in connection with finalizing and reporting its annual results of operations, unless significant changes in trends or new developments warrant an earlier review. As part of its annual comprehensive legal review, OI Inc. provides historical Asbestos Claims’ data to a third party with expertise in determining the impact of disease incidence and mortality on future filing trends to develop information to assist OI Inc. in estimating the total number of future Asbestos Claims likely to be asserted against OI Inc. OI Inc. uses this estimate, along with an estimation of disposition costs and related legal costs, as inputs to develop its best estimate of its total probable liability. If the results of the annual comprehensive legal review indicate that the existing amount of the accrued liability is lower (higher) than its reasonably estimable asbestos-related costs, then OI Inc. will record an appropriate charge (credit) to OI Inc.’s results of operations to increase (decrease) the accrued liability.

The significant assumptions underlying the material components of OI Inc.’s accrual are:

a) settlements will continue to be limited almost exclusively to claimants who were exposed to OI Inc.’s asbestos containing insulation prior to its exit from that business in 1958;

b) Asbestos Claims will continue to be resolved primarily under OI Inc.’s administrative claims-handling agreements or on terms comparable to those set forth in those agreements;

c) the incidence of serious asbestos-related disease cases and claiming patterns against OI Inc. for such cases do not change materially;

d) OI Inc. is substantially able to defend itself successfully at trial and on appeal;

e) the number and timing of additional co-defendant bankruptcies do not change significantly the assets available to participate in the resolution of cases in which OI Inc. is a defendant; and

f) co-defendants with substantial resources and assets continue to participate significantly in the resolution of future Asbestos Claims.

For the years ended December 31, 2018 and 2017, OI Inc. concluded that accruals in the amounts of $602 million and $582 million, respectively, were required. These amounts have not been discounted for the time value of money. OI Inc.’s comprehensive legal reviews resulted in charges of $125 million, $0 million and $0 million for the years ended December 31, 2018, 2017 and 2016, respectively. As previously disclosed, OI Inc. anticipated that adjustments to its asbestos-related accruals were possible given the inherent uncertainties involved in asbestos litigation. In the fourth

quarter of 2018, OI Inc. determined that it was advantageous to accelerate the disposition of certain claims in light of additional information OI Inc. obtained about higher estimated future claim volumes and values in certain of the affected discrete streams of potential liability. Factors impacting the increased likelihood of these additional losses included changes in the law, procedure, the expansion of judicial resources in certain jurisdictions, and renewed attention to dockets of non-mesothelioma cases. OI Inc. also obtained new information about other Asbestos Claims, which had the effect of reducing its asbestos-related liability. The combined effect of these items resulted in a change in estimate of OI Inc.’s asbestos-related liability.

OI Inc. believes that it is reasonably possible that it will incur a loss for its asbestos-related liabilities in excess of the amount currently recognized, which was $602 million as of December 31, 2018. OI Inc. estimated that reasonably possible losses could result in asbestos-related liabilities of approximately $722 million. This estimate of additional reasonably possible loss reflects a qualitative judgment regarding the nature of contingencies that could impact future Asbestos Claims and legal costs, which include, but are not limited to, successful attempts by plaintiffs to challenge existing legal barriers to entry, enact plaintiff-oriented procedural rules or liability or damage-related legislation, establish new theories of liability, revive long-dormant inventories of non-mesothelioma cases, or leverage changing jurisdictional dynamics and a changing litigation environment to increase the volume of Asbestos Claims presented or per-claim indemnity values. However, it is also possible that the ultimate amount of asbestos-related liabilities could be above this estimate.

OI Inc. expects a significant majority of the total number of Asbestos Claims to be received in the next five to seven years. This timeframe appropriately reflects the mortality of current and expected claimants in light of OI Inc.’s sale of its insulation business unit in 1958. OI Inc. may continue to experience increased year-over-year variability with regard to the annual quantity of Asbestos Claims presented to and disposed by OI Inc. This increased variability, jurisdictional dynamics, a changing litigation environment, the size of the remaining pool of claimants, and the expected increase in mortality over the next five to seven years may present OI Inc. with further opportunities to accelerate disposition of discrete parts of its claimant pool. These influences may create increased variability in the annual cash payments year-over-year.

OI Inc.’s asbestos-related liability is based on a projection of new Asbestos Claims that will eventually be filed against OI Inc. and the estimated average disposition cost of these claims and related legal costs. Changes in these projections, and estimates, as well as changes in the significant assumptions noted above, have the potential to significantly impact the estimation of OI Inc.’s asbestos-related liability.

Other Matters

Other litigation is pending against the Company, in many cases involving ordinary and routine claims incidental to the business of the Company and in others presenting allegations that are non-routine and involve compensatory, punitive or treble damage claims as well as other types of relief. The Company records a liability for such matters when it is both probable that the liability has been incurred and the amount of the liability can be reasonably estimated. Recorded amounts are reviewed and adjusted to reflect changes in the factors upon which the estimates are based, including additional information, negotiations, settlements and other events.

Share Owners' Equity

6 Months Ended

Jun. 30, 2019

Share Owners' Equity

Share Owners' Equity

12. Share Owners’ Equity

The activity in share owners’ equity for the three months ended June 30, 2019 and 2018 is as follows:


	Share Owners’ Equity of the Company
					Accumulated
	Other				Other		Non-		Total Share
	Contributed		Retained		Comprehensive		controlling		Owners'
	Capital		Earnings		Loss		Interests		Equity
Balance on April 1, 2019	$	207	$	3,083	$	(1,870)	$	122	$	1,542
Net distribution to parent		(31)								(31)
Net earnings				65				5		70
Other comprehensive income						20		(12)		8
Balance on June 30, 2019	$	176	$	3,148	$	(1,850)	$	115	$	1,589


	Share Owners’ Equity of the Company
					Accumulated
	Other				Other		Non-		Total Share
	Contributed		Retained		Comprehensive		controlling		Owners'
	Capital		Earnings		Loss		Interests		Equity
Balance on April 1, 2018	$	507	$	2,720	$	(1,663)	$	130	$	1,694
Net distribution to parent		(55)								(55)
Net earnings				50				6		56
Other comprehensive income						(225)		(15)		(240)
Balance on June 30, 2018	$	452	$	2,770	$	(1,888)	$	121	$	1,455

The activity in share owners’ equity for the six months ended June 30, 2019 and 2018 is as follows:


	Share Owners’ Equity of the Company
					Accumulated
	Other				Other		Non-		Total Share
	Contributed		Retained		Comprehensive		controlling		Owners'
	Capital		Earnings		Loss		Interests		Equity
Balance on January 1, 2019	$	311	$	3,004	$	(1,927)	$	114	$	1,502
Net distribution to parent		(135)								(135)
Net earnings				144				10		154
Other comprehensive loss						77		(9)		68
Balance on June 30, 2019	$	176	$	3,148	$	(1,850)	$	115	$	1,589


	Share Owners’ Equity of the Company
					Accumulated
	Other				Other		Non-		Total Share
	Contributed		Retained		Comprehensive		controlling		Owners'
	Capital		Earnings		Loss		Interests		Equity
Balance on January 1, 2018	$	553	$	2,623	$	(1,786)	$	119	$	1,509
Net distribution to parent		(101)								(101)
Net earnings				147				11		158
Other comprehensive income (loss)						(102)		(9)		(111)
Balance on June 30, 2018	$	452	$	2,770	$	(1,888)	$	121	$	1,455

Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2019

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

13. Accumulated Other Comprehensive Loss

The activity in accumulated other comprehensive loss for the three months ended June 30, 2019 and 2018 is as follows:


									Total
									Accumulated
	Net Effect of		Change in Certain						Other
	Exchange Rate		Derivative			Employee			Comprehensive
	Fluctuations		Instruments			Benefit Plans			Loss
Balance on April 1, 2019	$	(843)	$	(6)		$	(1,021)		$	(1,870)
Change before reclassifications		13		(4)						9
Amounts reclassified from accumulated other comprehensive income (loss)				(6)	(a)		12	(b)		6
Translation effect				1			4			5
Tax effect										—
Other comprehensive income (loss) attributable to the Company		13		(9)			16			20
Balance on June 30, 2019	$	(830)	$	(15)		$	(1,005)		$	(1,850)

Total


									Accumulated
	Net Effect of		Change in Certain						Other
	Exchange Rate		Derivative			Employee			Comprehensive
	Fluctuations		Instruments			Benefit Plans			Loss
Balance on April 1, 2018	$	(603)	$	(10)		$	(1,050)		$	(1,663)
Change before reclassifications		(253)		18			(3)			(238)
Amounts reclassified from accumulated other comprehensive income (loss)				(18)	(a)		16	(b)		(2)
Translation effect				(1)			16			15
Other comprehensive income (loss) attributable to the Company		(253)		(1)			29			(225)
Balance on June 30, 2018	$	(856)	$	(11)		$	(1,021)		$	(1,888)

(a)	Amount is included in Cost of goods sold and Other expense, net on the Condensed Consolidated Results of Operations (see Note 5 for additional information).

(b)	Amount is included in the computation of net periodic pension cost (see Note 7 for additional information) and net postretirement benefit cost.

The activity in accumulated other comprehensive loss for the six months ended June 30, 2019 and 2018 is as follows:


									Total
									Accumulated
	Net Effect of		Change in Certain						Other
	Exchange Rate		Derivative			Employee			Comprehensive
	Fluctuations		Instruments			Benefit Plans			Loss
Balance on January 1, 2019	$	(889)	$	(11)		$	(1,027)		$	(1,927)
Change before reclassifications		59		7			(2)			64
Amounts reclassified from accumulated other comprehensive income (loss)				(17)	(a)		25	(b)		8
Translation effect				3			(1)			2
Tax effect				3						3
Other comprehensive income (loss) attributable to the Company		59		(4)			22			77
Balance on June 30, 2019	$	(830)	$	(15)		$	(1,005)		$	(1,850)


									Total
									Accumulated
	Net Effect of		Change in Certain						Other
	Exchange Rate		Derivative			Employee			Comprehensive
	Fluctuations		Instruments			Benefit Plans			Loss
Balance on January 1, 2018	$	(724)	$	(5)		$	(1,057)		$	(1,786)
Change before reclassifications		(132)		4			(7)			(135)
Amounts reclassified from accumulated other comprehensive income (loss)				(9)	(a)		33	(b)		24
Translation effect				(1)			10			9
Other comprehensive income (loss) attributable to the Company		(132)		(6)			36			(102)
Balance on June 30, 2018	$	(856)	$	(11)		$	(1,021)		$	(1,888)

(a)	Amount is included in Cost of goods sold and Other expense, net on the Condensed Consolidated Results of Operations (see Note 5 for additional information).

(b)	Amount is included in the computation of net periodic pension cost (see Note 7 for additional information) and net postretirement benefit cost.

Other Expense (Income), net

6 Months Ended

Jun. 30, 2019

Other Expense (Income), net

Other Expense (Income), net

14. Other Expense (Income), net

Other expense (income), net for the three and six months ended June 30, 2019 and 2018 included the following:


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Restructuring, asset impairment and other charges	$	38	$	68	$	38	$	68
Foreign currency exchange (gain) loss						3		(2)
Intangible amortization expense		10		10		20		20
Royalty income		(4)		(3)		(7)		(6)
Other expense (income), net		11		(3)		11		(11)
	$	55	$	72	$	65	$	69

Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Information

Supplemental Cash Flow Information

15. Supplemental Cash Flow Information

Income taxes paid (received) in cash were as follows:


	Six months ended June 30,
	2019		2018
U.S.	$	(3)	$	7
Non-U.S.		61		68
Total income taxes paid in cash	$	58	$	75

Interest paid in cash for the six months ended June 30, 2019 and 2018 was $128 million and $128 million, respectively.

The Company uses various factoring programs to sell certain receivables to financial institutions as part of managing its cash flows. At June 30, 2019, December 31, 2018 and June 30, 2018, the amount of receivables sold by the Company was $173 million, $600 million and $221 million, respectively. For the six months ended June 30, 2019 and 2018, the Company reduced the use of its factoring programs compared to the most recent respective year end periods and this resulted in a higher use of working capital, and corresponding decrease to cash from operating activities, of approximately $427 million and $233 million, respectively.

Discontinued Operations

6 Months Ended

Jun. 30, 2019

Discontinued Operations

Discontinued Operations

16. Discontinued Operations

On December 6, 2018, an ad hoc committee for the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) rejected the request by the Bolivarian Republic of Venezuela (“Venezuela”) to annul the award issued by an ICSID tribunal in favor of OI European Group B.V. (“OIEG”) related to the 2010 expropriation of OIEG’s majority interest in two plants in Venezuela (the “Award”). The annulment proceeding with respect to the Award is now concluded.

On July 31, 2017, OIEG sold its right, title and interest in amounts due under the Award to an Ireland-domiciled investment fund. Under the terms of the sale, OIEG received a payment, in cash, at closing equal to $115 million (the “Cash Payment”). OIEG may also receive additional payments in the future (“Deferred Amounts”) calculated based on the total compensation that is received from Venezuela as a result of collection efforts or as settlement of the Award with Venezuela. OIEG’s right to receive any Deferred Amounts is subject to the limitations described below.

OIEG’s interest in any amounts received in the future from Venezuela in respect of the Award is limited to a percentage of such recovery after taking into account reimbursement of the Cash Payment to the purchaser and reimbursement of legal fees and expenses incurred by the Company and the purchaser. OIEG’s percentage of such recovery will also be reduced over time. Because the Award has yet to be satisfied and the ability to successfully enforce the Award in countries that are party to the ICSID Convention is subject to significant challenges, the Company is unable to reasonably predict the amount of recoveries from the Award, if any, to which the Company may be entitled in the future. Any future amounts that the Company may receive from the Award are highly speculative and the timing of any such future payments, if any, is highly uncertain. As such, there can be no assurance that the Company will receive any future payments under the Award beyond the Cash Payment.

As a result of the favorable ruling by an ICSID ad hoc committee rejecting Venezuela’s request to annul the OIEG Award, and thereby concluding those annulment proceedings, the Company recognized a $115 million gain from discontinued operations in the fourth quarter of 2018.

A separate arbitration involving other subsidiaries of the Company was initiated in 2012 to obtain compensation primarily for third-party minority shareholders’ lost interests in the two expropriated plants. However, on November 13, 2017, ICSID issued an award that dismissed this arbitration on jurisdiction grounds. In March 2018, the two subsidiaries of the Company submitted to ICSID an application to annul the November 13, 2017 award, and a hearing on the annulment was heard by an ad hoc committee of ICSID in July 2019; no decision has been rendered yet.

The loss from discontinued operations, which primarily reflects the ongoing costs for the Venezuelan expropriation, was approximately $1 million for each of the six month periods ended June 30, 2019 and 2018.

New Accounting Pronouncement

6 Months Ended

Jun. 30, 2019

New Accounting Pronouncement

New Accounting Pronouncement

17. New Accounting Pronouncement

Leases - On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases”. Under this guidance, lessees are required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The adoption of ASU No. 2016-02 had a significant impact on the Company’s consolidated balance sheet due to the recognition of approximately $214 million of lease liabilities with corresponding right-of-use assets for operating leases as of January 1, 2019. The adoption of ASU No. 2016-02 had no material impact on the Company’s retained earnings, consolidated results of operations or consolidated cash flows.

The Company elected the package of practical expedients relating to the identification, classification and initial direct costs of leases commencing before the effective date, and the transitional practical expedient for the treatment of existing land easements; however, the Company did not elect the hindsight transitional practical expedient. The Company has also elected the practical expedient to not account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the nonlease components (e.g., common-area maintenance costs). See Note 8, Leases, for additional information.

Credit Losses - In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance also requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. The new guidance is effective for the Company on January 1, 2020. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Income Taxes - In January 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which gives entities the option to reclassify to retained earnings the tax effects resulting from the U.S. Tax Cuts and Jobs Act (the “Act”) related to items in Accumulated other comprehensive income (“AOCI”) that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Act is recognized in the period of adoption. The Company must adopt this guidance for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2019. The Company has not elected to reclassify income tax effects of the Act from AOCI to retained earnings.

Disclosure Requirements for Fair Value Measurement - In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” which modifies the fair value disclosure requirements. Application of the standard is required for annual periods beginning after December 15, 2019. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Disclosure Requirements for Defined Benefit Plans - In August 2018, the FASB issued ASU No. 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” which modifies the defined benefit plan disclosure requirements. Application of the standard is required for annual periods beginning after December 15, 2020. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Business Combinations

6 Months Ended

Jun. 30, 2019

Business Combinations

Business Combinations

18. Business Combinations

On June 28, 2019, the Company completed the acquisition of Nueva Fábrica Nacional de Vidrio, S. de R.L. de C.V. (“Nueva Fanal”) from Grupo Modelo, an affiliate of Anheuser-Busch InBev SA/NV for a total purchase price of approximately $195 million. In the second quarter of 2019, the Company paid approximately $157 million in cash toward this acquisition and the remaining approximately $38 million is expected to be paid by the end of 2019, subject to a working capital adjustment. The Company financed this acquisition with debt. The Nueva Fanal facility is located near Mexico City, Mexico. Currently, this plant has four furnaces to produce and supply approximately 300,000 tons of glass containers annually for Grupo Modelo brands, such as Corona, for local and global export markets. Further, O-I has entered into a long-term agreement to continue to supply glass to Grupo Modelo. This acquisition increases the Company’s presence in the Mexican glass packaging market.

Nueva Fanal’s operating results are included in the Company’s unaudited condensed consolidated financial statements from the acquisition date as part of the Americas segment. The acquisition qualifies as a business combination and will be accounted for using the acquisition method of accounting.

The total purchase price will be allocated to the tangible and identifiable intangible assets and liabilities based upon their respective fair values. The purchase agreement contains customary provisions for working capital adjustments, which the Company expects to resolve with the seller by the end of 2019. The aggregate purchase price was preliminarily allocated to the Company’s balance sheet as of June 30, 2019 and has not yet been finalized because the Company has not yet completed its review of the asset and liability values and related amortization and depreciation periods. The following table summarizes the preliminary estimates of fair value of the assets and liabilities assumed on June 28, 2019:


Accounts receivable	$	42
Inventory		17
Long lived assets (includes PP&E and intangibles)		164
Total assets		223
Accounts payable		25
Accrued liabilities		3
Net assets acquired	$	195

This acquisition did not meet the thresholds for a significant acquisition and therefore no pro forma financial information is presented.

Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Information

Net sales for the Company's reportable segments


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Net sales:
Americas	$	934	$	930	$	1,815	$	1,838
Europe		650		674		1,246		1,317
Asia Pacific		152		153		303		326
Reportable segment totals		1,736		1,757		3,364		3,481
Other		20		15		29		27
Net sales	$	1,756	$	1,772	$	3,393	$	3,508

Segment operating profit (loss) for the Company's reportable segments


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Segment operating profit:
Americas	$	144	$	152	$	257	$	299
Europe		90		101		169		173
Asia Pacific		2		2		10		7
Reportable segment totals		236		255		436		479
Items excluded from segment operating profit:
Retained corporate costs and other		(28)		(30)		(53)		(57)
Restructuring, asset impairment and other		(42)		(73)		(42)		(73)
Interest expense, net		(68)		(74)		(132)		(136)
Earnings from continuing operations before income taxes	$	98	$	78	$	209	$	213

Total assets for the Company's reportable segments


	June 30,		December 31,		June 30,
	2019		2018		2018
Total assets:
Americas	$	5,994	$	5,497	$	5,402
Europe		3,342		3,036		3,232
Asia Pacific		1,045		918		981

Reportable segment totals		10,381		9,451		9,615
Other		342		248		203
Consolidated totals	$	10,723	$	9,699	$	9,818

Revenue (Tables)

6 Months Ended

Jun. 30, 2019

Revenue

Schedule of disaggregation of revenue by customer end use

The following tables for the three months ended June 30, 2019 and 2018 disaggregates the Company’s revenue by customer end use:


	Three months ended June 30, 2019
	Americas		Europe		Asia Pacific		Total

Alcoholic beverages (beer, wine, spirits)	$	590	$	474	$	105	$	1,169
Food and other		191		109		29		329
Non-alcoholic beverages		153		67		18		238
Reportable segment totals	$	934	$	650	$	152	$	1,736
Other								20
Net sales							$	1,756


	Three months ended June 30, 2018
	Americas		Europe		Asia Pacific		Total

Alcoholic beverages (beer, wine, spirits)	$	585	$	493	$	113	$	1,191
Food and other		197		112		23		332
Non-alcoholic beverages		148		69		17		234
Reportable segment totals	$	930	$	674	$	153	$	1,757
Other								15
Net sales							$	1,772

The following tables for the six months ended June 30, 2019 and 2018 disaggregates the Company’s revenue by customer end use:


	Six months ended June 30, 2019
	Americas		Europe		Asia Pacific		Total

Alcoholic beverages (beer, wine, spirits)	$	1,153	$	907	$	214	$	2,274
Food and other		372		211		54		637
Non-alcoholic beverages		290		128		35		453
Reportable segment totals	$	1,815	$	1,246	$	303	$	3,364
Other								29
Net sales							$	3,393

	Six months ended June 30, 2018
	Americas		Europe		Asia Pacific		Total

Alcoholic beverages (beer, wine, spirits)	$	1,161	$	964	$	240	$	2,365
Food and other		386		224		47		657
Non-alcoholic beverages		291		129		39		459
Reportable segment totals	$	1,838	$	1,317	$	326	$	3,481
Other								27
Net sales							$	3,508

Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Inventories

Major classes of inventory


	June 30,		December 31,		June 30,
	2019		2018		2018
Finished goods	$	838	$	849	$	821
Raw materials		131		125		123
Operating supplies		46		44		41
	$	1,015	$	1,018	$	985

Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments

Balance Sheet Classification of derivative instruments

Balance Sheet Classification

The following table shows the amount and classification (as noted above) of the Company’s derivatives at June 30, 2019, December 31, 2018 and June 30, 2018:


	Fair Value of						Fair Value of
	Hedge Assets						Hedge Liabilities
	June 30,		December 31,		June 30,		June 30,		December 31,		June 30,
	2019		2018		2018		2019		2018		2018
Derivatives designated as hedging instruments:
Commodity forward contracts (a)	$	2	$	1	$	7	$	1	$	-	$	-
Interest rate swaps - fair value hedges (b)		15		6		6				1		8
Cash flow hedges of foreign exchange risk (c)		20		10		5		30		1		12
Interest rate swaps - cash flow hedges (d)		1						2
Net investment hedges (e)		6		6				6		8
Total derivatives accounted for as hedges	$	44	$	23	$	18	$	39	$	10	$	20
Derivatives not designated as hedges:
Foreign exchange derivative contracts (f)		2		2		2		1		2		2
Total derivatives	$	46	$	25	$	20	$	40	$	12	$	22


Current	$	13	$	19	$	13	$	3	$	3	$	3
Noncurrent		33		6		7		37		9		19
Total derivatives	$	46	$	25	$	20	$	40	$	12	$	22

(e) The notional amounts of the net investment hedges were €160 million and maximum maturity dates were 2020 at June 30, 2019 and December 31, 2018.

Effect of derivative on the results of operations


	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Three months ended June 30,				Three months ended June 30,
Derivatives designated as hedging instruments:	2019		2018		2019		2018
Cash Flow Hedges
Commodity forward contracts (a)	$	(1)	$	4	$	—	$	—
Cash flow hedges of foreign exchange risk (b)		(5)		14		(2)		18
Cash flow hedges of interest rate risk (c)		(1)
Net Investment Hedges
Net Investment Hedges		5				(4)
	$	(2)	$	18	$	(6)	$	18

	Gain (Loss) Recognized in OCI (Effective Portion)				Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (1)
	Six months ended June 30,				Six months ended June 30,
Derivatives designated as hedging instruments:	2019		2018		2019		2018
Cash Flow Hedges
Commodity forward contracts (a)	$	1	$	5	$	(1)	$	(1)
Cash flow hedges of foreign exchange risk (b)		2		1		(12)		10
Cash flow hedges of interest rate risk (c)		(1)
Net Investment Hedges
Net Investment Hedges		5				(4)
	$	7	$	6	$	(17)	$	9

	Amount of Gain (Loss) Recognized in Other income (expense), net				Amount of Gain (Loss) Recognized in Other income (expense), net
	Three months ended June 30,				Six months ended June 30,
Derivatives not designated as hedges:	2019		2018		2019		2018
Foreign exchange derivative contracts	$	1	$	—	$	7	$	—

(1) Gains and losses reclassified from accumulated OCI and recognized in income are recorded to (a) cost of goods sold, (b) other expense, net or (c) interest expense, net.

Restructuring Accruals (Tables)

6 Months Ended

Jun. 30, 2019

Restructuring Accruals

Selected information related to the restructuring accruals

Selected information related to the restructuring accruals for the three months ended June 30, 2019 and 2018 is as follows:


	Employee		Asset		Other		Total
	Costs		Impairment		Exit Costs		Restructuring
Balance at April 1, 2019	$	34	$		$	19	$	53
Charges		27				5		32
Net cash paid, principally severance and related benefits		(11)				(3)		(14)
Other, including foreign exchange translation						(1)		(1)
Balance at June 30, 2019	$	50	$	—	$	20	$	70


	Employee		Asset		Other		Total
	Costs		Impairment		Exit Costs		Restructuring
Balance at April 1, 2018	$	63	$		$	17	$	80
Charges		15		53		2		70
Write-down of assets to net realizable value				(53)				(53)
Net cash paid, principally severance and related benefits		(5)				(1)		(6)
Other, including foreign exchange translation		(2)				(2)		(4)
Balance at June 30, 2018	$	71	$	—	$	16	$	87

Selected information related to the restructuring accruals for the six months ended June 30, 2019 and 2018 is as follows:


	Employee		Asset		Other		Total
	Costs		Impairment		Exit Costs		Restructuring
Balance at January 1, 2019	$	47	$		$	22	$	69
Charges		27				5		32
Net cash paid, principally severance and related benefits		(24)				(5)		(29)
Other, including foreign exchange translation						(2)		(2)
Balance at June 30, 2019	$	50	$	—	$	20	$	70


	Employee		Asset		Other		Total
	Costs		Impairment		Exit Costs		Restructuring
Balance at January 1, 2018	$	67	$		$	18	$	85
Charges		15		53		2		70
Write-down of assets to net realizable value				(53)				(53)
Net cash paid, principally severance and related benefits		(10)				(2)		(12)
Other, including foreign exchange translation		(1)				(2)		(3)
Balance at June 30, 2018	$	71	$	—	$	16	$	87

Pension Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2019

Pension Benefit Plans

Pension Benefit Plans and Other Postretirement Benefit Plans

Components of net periodic pension cost

The components of the net periodic pension cost for the three months ended June 30, 2019 and 2018 are as follows:


	U.S.				Non-U.S.
	2019		2018		2019		2018
Service cost	$	3	$	4	$	3	$	3
Interest cost		15		15		7		8
Expected asset return		(22)		(25)		(11)		(14)
Amortization of actuarial loss		10		13		3		3
Net periodic pension cost	$	6	$	7	$	2	$	—

The components of the net periodic pension cost for the six months ended June 30, 2019 and 2018 are as follows:


	U.S.				Non-U.S.
	2019		2018		2019		2018
Service cost	$	6	$	7	$	6	$	7
Interest cost		30		30		15		16
Expected asset return		(44)		(49)		(22)		(27)
Amortization of actuarial loss		20		26		5		7
Net periodic pension cost	$	12	$	14	$	4	$	3

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases

Schedule of components of lease expense


	Three months ended		Six months ended
	June 30,		June 30,
	2019		2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets (included in Cost of goods sold and Selling and administrative expense)	$	2	$	3
Interest on lease liabilities (included in Interest expense, net)				1
Operating lease cost (included in Cost of goods sold and Selling and administrative expense)		21		42
Total lease cost	$	23	$	46


	Six months ended
	June 30,
	2019
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	21
Operating cash flows from finance leases		1
Financing cash flows from finance leases		3
Right-of-use assets obtained in exchange for new operating lease liabilities		33

Schedule of supplemental balance sheet information

	June 30, 2019
Supplemental balance sheet information
Operating leases:
Operating lease right-of-use assets (included in Other assets)	$	196

Current operating lease liabilities (included in Other current liabilities)		67
Noncurrent operating lease liabilities (included in Other long-term liabilities)		129
Total operating lease liabilities	$	196

Finance leases:
Property, plant and equipment	$	74
Accumulated amortization		(30)
Property, plant and equipment, net		44

Current finance lease liabilities (included in Long-term debt due within one year)		6
Noncurrent finance lease liabilities (included in Long-term debt)		35
Total finance lease liabilities	$	41

Weighted-average remaining lease term (in years):
Operating leases		4.8
Finance leases		7.0
Weighted-average discount rate:
Operating leases		3.8
Finance leases		5.2

Schedule of operating leases maturities of lease liabilities


Maturity of lease liabilities		Operating leases		Finance leases
2019	$	39	$	5
2020		61		8
2021		37		8
2022		28		6
2023		18		6
2024 and thereafter		32		17
Total lease payments		215		50
Less: imputed interest		(19)		(9)
Total lease obligations	$	196	$	41

Minimum payments related to leases not yet commenced as of June 30, 2019	$	-	$	85

Debt (Tables)

6 Months Ended

Jun. 30, 2019

Debt

Long-term debt


	June 30,		December 31,		June 30,
	2019		2018		2018
Secured Credit Agreement:
Revolving Credit Facility:
Revolving Loans	$	389	$		$
Term Loans:
Term Loan A		1,496
Previous Secured Credit Agreement:
Revolving Credit Facility:
Revolving Loans						397
Term Loans:
Term Loan A				897		908
Other secured debt		454		404		150
Senior Notes:
6.75%, due 2020 (€500 million)		567		570		580
4.875%, due 2021 (€330 million)		374		376		383
5.00%, due 2022		497		497		496
4.00%, due 2023		307		306		306
5.875%, due 2023		689		688		686
3.125%, due 2024 (€725 million)		845		825		833
6.375%, due 2025		296		295		295
5.375%, due 2025		298		297		297
Finance leases		41		45		50
Other		12		14		17
Total long-term debt		6,265		5,214		5,398
Less amounts due within one year		30		33		21
Long-term debt	$	6,235	$	5,181	$	5,377

Fair values of the Company's significant fixed rate debt obligations


	Principal		Indicated
	Amount		Market Price		Fair Value
Senior Notes:
6.75%, due 2020 (€500 million)	$	568	$	108.48	$	616
4.875%, due 2021 (€330 million)		375		108.35		406
5.00%, due 2022		500		102.95		515
5.875%, due 2023		700		107.36		752
4.00%, due 2023		310		100.37		311
3.125%, due 2024 (€725 million)		824		108.85		897
6.375%, due 2025		300		107.66		323
5.375%, due 2025		300		103.49		310

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Share Owners' Equity (Tables)

6 Months Ended

Jun. 30, 2019

Share Owners' Equity

Activity in share owners' equity

The activity in share owners’ equity for the three months ended June 30, 2019 and 2018 is as follows:


	Share Owners’ Equity of the Company
					Accumulated
	Other				Other		Non-		Total Share
	Contributed		Retained		Comprehensive		controlling		Owners'
	Capital		Earnings		Loss		Interests		Equity
Balance on April 1, 2019	$	207	$	3,083	$	(1,870)	$	122	$	1,542
Net distribution to parent		(31)								(31)
Net earnings				65				5		70
Other comprehensive income						20		(12)		8
Balance on June 30, 2019	$	176	$	3,148	$	(1,850)	$	115	$	1,589


	Share Owners’ Equity of the Company
					Accumulated
	Other				Other		Non-		Total Share
	Contributed		Retained		Comprehensive		controlling		Owners'
	Capital		Earnings		Loss		Interests		Equity
Balance on April 1, 2018	$	507	$	2,720	$	(1,663)	$	130	$	1,694
Net distribution to parent		(55)								(55)
Net earnings				50				6		56
Other comprehensive income						(225)		(15)		(240)
Balance on June 30, 2018	$	452	$	2,770	$	(1,888)	$	121	$	1,455

The activity in share owners’ equity for the six months ended June 30, 2019 and 2018 is as follows:


	Share Owners’ Equity of the Company
					Accumulated
	Other				Other		Non-		Total Share
	Contributed		Retained		Comprehensive		controlling		Owners'
	Capital		Earnings		Loss		Interests		Equity
Balance on January 1, 2019	$	311	$	3,004	$	(1,927)	$	114	$	1,502
Net distribution to parent		(135)								(135)
Net earnings				144				10		154
Other comprehensive loss						77		(9)		68
Balance on June 30, 2019	$	176	$	3,148	$	(1,850)	$	115	$	1,589


	Share Owners’ Equity of the Company
					Accumulated
	Other				Other		Non-		Total Share
	Contributed		Retained		Comprehensive		controlling		Owners'
	Capital		Earnings		Loss		Interests		Equity
Balance on January 1, 2018	$	553	$	2,623	$	(1,786)	$	119	$	1,509
Net distribution to parent		(101)								(101)
Net earnings				147				11		158
Other comprehensive income (loss)						(102)		(9)		(111)
Balance on June 30, 2018	$	452	$	2,770	$	(1,888)	$	121	$	1,455

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2019

Accumulated Other Comprehensive Loss

Schedule of activity in accumulated other comprehensive loss

The activity in accumulated other comprehensive loss for the three months ended June 30, 2019 and 2018 is as follows:


									Total
									Accumulated
	Net Effect of		Change in Certain						Other
	Exchange Rate		Derivative			Employee			Comprehensive
	Fluctuations		Instruments			Benefit Plans			Loss
Balance on April 1, 2019	$	(843)	$	(6)		$	(1,021)		$	(1,870)
Change before reclassifications		13		(4)						9
Amounts reclassified from accumulated other comprehensive income (loss)				(6)	(a)		12	(b)		6
Translation effect				1			4			5
Tax effect										—
Other comprehensive income (loss) attributable to the Company		13		(9)			16			20
Balance on June 30, 2019	$	(830)	$	(15)		$	(1,005)		$	(1,850)

Total


									Accumulated
	Net Effect of		Change in Certain						Other
	Exchange Rate		Derivative			Employee			Comprehensive
	Fluctuations		Instruments			Benefit Plans			Loss
Balance on April 1, 2018	$	(603)	$	(10)		$	(1,050)		$	(1,663)
Change before reclassifications		(253)		18			(3)			(238)
Amounts reclassified from accumulated other comprehensive income (loss)				(18)	(a)		16	(b)		(2)
Translation effect				(1)			16			15
Other comprehensive income (loss) attributable to the Company		(253)		(1)			29			(225)
Balance on June 30, 2018	$	(856)	$	(11)		$	(1,021)		$	(1,888)

(a)	Amount is included in Cost of goods sold and Other expense, net on the Condensed Consolidated Results of Operations (see Note 5 for additional information).

(b)	Amount is included in the computation of net periodic pension cost (see Note 7 for additional information) and net postretirement benefit cost.

The activity in accumulated other comprehensive loss for the six months ended June 30, 2019 and 2018 is as follows:


									Total
									Accumulated
	Net Effect of		Change in Certain						Other
	Exchange Rate		Derivative			Employee			Comprehensive
	Fluctuations		Instruments			Benefit Plans			Loss
Balance on January 1, 2019	$	(889)	$	(11)		$	(1,027)		$	(1,927)
Change before reclassifications		59		7			(2)			64
Amounts reclassified from accumulated other comprehensive income (loss)				(17)	(a)		25	(b)		8
Translation effect				3			(1)			2
Tax effect				3						3
Other comprehensive income (loss) attributable to the Company		59		(4)			22			77
Balance on June 30, 2019	$	(830)	$	(15)		$	(1,005)		$	(1,850)


									Total
									Accumulated
	Net Effect of		Change in Certain						Other
	Exchange Rate		Derivative			Employee			Comprehensive
	Fluctuations		Instruments			Benefit Plans			Loss
Balance on January 1, 2018	$	(724)	$	(5)		$	(1,057)		$	(1,786)
Change before reclassifications		(132)		4			(7)			(135)
Amounts reclassified from accumulated other comprehensive income (loss)				(9)	(a)		33	(b)		24
Translation effect				(1)			10			9
Other comprehensive income (loss) attributable to the Company		(132)		(6)			36			(102)
Balance on June 30, 2018	$	(856)	$	(11)		$	(1,021)		$	(1,888)

(a)	Amount is included in Cost of goods sold and Other expense, net on the Condensed Consolidated Results of Operations (see Note 5 for additional information).

(b)	Amount is included in the computation of net periodic pension cost (see Note 7 for additional information) and net postretirement benefit cost.

Other Expense (Income), net (Tables)

6 Months Ended

Jun. 30, 2019

Other Expense (Income), net

Schedule of other expense (income), net


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Restructuring, asset impairment and other charges	$	38	$	68	$	38	$	68
Foreign currency exchange (gain) loss						3		(2)
Intangible amortization expense		10		10		20		20
Royalty income		(4)		(3)		(7)		(6)
Other expense (income), net		11		(3)		11		(11)
	$	55	$	72	$	65	$	69

Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Information

Supplemental Cash Flow Information


	Six months ended June 30,
	2019		2018
U.S.	$	(3)	$	7
Non-U.S.		61		68
Total income taxes paid in cash	$	58	$	75

Business Combinations (Tables)

6 Months Ended

Jun. 30, 2019

Business Combinations Abstract

Schedule of preliminary estimates of fair value of the assets and liabilities


Accounts receivable	$	42
Inventory		17
Long lived assets (includes PP&E and intangibles)		164
Total assets		223
Accounts payable		25
Accrued liabilities		3
Net assets acquired	$	195

Segment Information - Reportable Segments (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) segment	Jun. 30, 2018 USD ($)
Segment Reporting Information
Number of reportable segments \| segment			3
Number of operating segments \| segment			3
Net sales:
Net sales	$ 1,756	$ 1,772	$ 3,393	$ 3,508
Segment Operating Profit:
Segment operating profit	236	255	436	479
Items excluded from segment operating profit:
Retained corporate costs and other	(28)	(30)	(53)	(57)
Restructuring, asset impairment and other	(42)	(73)	(42)	(73)
Interest expense, net	(68)	(74)	(132)	(136)
Earnings from continuing operations before income taxes
Earnings from continuing operations before income taxes	98	78	209	213
Reportable Segment Totals
Net sales:
Net sales	1,736	1,757	3,364	3,481
Americas
Net sales:
Net sales	934	930	1,815	1,838
Segment Operating Profit:
Segment operating profit	144	152	257	299
Europe
Net sales:
Net sales	650	674	1,246	1,317
Segment Operating Profit:
Segment operating profit	90	101	169	173
Asia Pacific
Net sales:
Net sales	152	153	303	326
Segment Operating Profit:
Segment operating profit	2	2	10	7
Other
Net sales:
Net sales	$ 20	$ 15	$ 29	$ 27

Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Revenue (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue
Net sales	$ 1,756	$ 1,772	$ 3,393	$ 3,508
Reportable Segment Totals
Disaggregation of Revenue
Net sales	1,736	1,757	3,364	3,481
Americas
Disaggregation of Revenue
Net sales	934	930	1,815	1,838
Europe
Disaggregation of Revenue
Net sales	650	674	1,246	1,317
Asia Pacific
Disaggregation of Revenue
Net sales	152	153	303	326
Other
Disaggregation of Revenue
Net sales	20	15	29	27
Alcoholic beverages (beer, wine, spirits)
Disaggregation of Revenue
Net sales	1,169	1,191	2,274	2,365
Alcoholic beverages (beer, wine, spirits) \| Americas
Disaggregation of Revenue
Net sales	590	585	1,153	1,161
Alcoholic beverages (beer, wine, spirits) \| Europe
Disaggregation of Revenue
Net sales	474	493	907	964
Alcoholic beverages (beer, wine, spirits) \| Asia Pacific
Disaggregation of Revenue
Net sales	105	113	214	240
Food and other
Disaggregation of Revenue
Net sales	329	332	637	657
Food and other \| Americas
Disaggregation of Revenue
Net sales	191	197	372	386
Food and other \| Europe
Disaggregation of Revenue
Net sales	109	112	211	224
Food and other \| Asia Pacific
Disaggregation of Revenue
Net sales	29	23	54	47
Non-alcoholic beverages
Disaggregation of Revenue
Net sales	238	234	453	459
Non-alcoholic beverages \| Americas
Disaggregation of Revenue
Net sales	153	148	290	291
Non-alcoholic beverages \| Europe
Disaggregation of Revenue
Net sales	67	69	128	129
Non-alcoholic beverages \| Asia Pacific
Disaggregation of Revenue
Net sales	$ 18	$ 17	$ 35	$ 39

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Inventories
Finished goods	$ 838	$ 849	$ 821
Raw materials	131	125	123
Operating supplies	46	44	41
Inventories	$ 1,015	$ 1,018	$ 985

Derivative Instruments - Derivatives and Hedges (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Derivatives and Hedges
Net cash proceeds for hedging activity		$ (28)
Net Investment Hedges
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI	$ 5	5	$ 4
Commodity forwards contracts \| Cash Flow Hedges
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI	2	2	1	$ 7
Cross-currency swap \| Cash Flow Hedges
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI	(18)	(18)	(9)	$ (8)
Net cash proceeds for hedging activity	15
Interest rate risk \| Cash Flow Hedges
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI	(1)	$ (1)
Interest rate risk \| Cash Flow Hedges \| Maximum
Derivatives and Hedges
Unrecognized (loss) gain included in Accumulated OCI			$ (1)
Interest rate risk \| Fair Value Hedges
Derivatives and Hedges
Net cash proceeds for hedging activity	$ 13

Derivative Instruments - Balance Sheet Classification (Details) € in Millions, $ in Millions	Jun. 30, 2019 EUR (€)	Jun. 30, 2019 USD ($)	Dec. 31, 2018 EUR (€)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 EUR (€)	Jun. 30, 2018 USD ($)
Derivatives, Fair Value
Total asset derivatives		$ 46		$ 25		$ 20
Total liability derivatives		40		12		22
Current derivative asset		13		19		13
Current derivative liability		3		3		3
Noncurrent derivative asset		33		6		7
Noncurrent derivative liability		37		9		19
Derivatives not designated as hedging instruments \| Cash flow hedges of foreign exchange risk
Derivatives, Fair Value
Notional amount		292		470		380
Total asset derivatives		2		2		2
Total liability derivatives		1		2		2
Derivatives designated as hedging instruments
Derivatives, Fair Value
Total asset derivatives		44		23		18
Total liability derivatives		39		10		20
Derivatives designated as hedging instruments \| Commodity forwards contracts
Derivatives, Fair Value
Notional amount		19		21		21
Total asset derivatives		2		1		7
Total liability derivatives		1
Derivatives designated as hedging instruments \| Interest rate swaps - fair value hedges
Derivatives, Fair Value
Notional amount \| €	€ 725		€ 725		€ 725
Total asset derivatives		15		6		6
Total liability derivatives				1		8
Derivatives designated as hedging instruments \| Cash flow hedges of foreign exchange risk
Derivatives, Fair Value
Notional amount		1,210		587		310
Total asset derivatives		20		10		5
Total liability derivatives		30		1		12
Derivatives designated as hedging instruments \| Interest rate swaps - cash flow hedges
Derivatives, Fair Value
Notional amount		480		180		$ 180
Total asset derivatives		1
Total liability derivatives		2
Derivatives designated as hedging instruments \| Net investment hedges
Derivatives, Fair Value
Notional amount \| €	€ 160		€ 160
Total asset derivatives		6		6
Total liability derivatives		$ 6		$ 8

Derivative Instruments - Effects of Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Derivatives designated as hedging instruments
Derivatives and Hedges
Amount of Gain (Loss) Recognized in OCI	$ (2)	$ 18	$ 7	$ 6
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	(6)	18	(17)	9
Derivatives designated as hedging instruments \| Net Investment Hedges
Derivatives and Hedges
Amount of Gain (Loss) Recognized in OCI	5		5
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	(4)		(4)
Derivatives designated as hedging instruments \| Commodity forwards contracts \| Cash Flow Hedges \| Cost of goods sold
Derivatives and Hedges
Amount of Gain (Loss) Recognized in OCI	(1)	4	1	5
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income			(1)	(1)
Derivatives designated as hedging instruments \| Cash flow hedges of foreign exchange risk \| Cash Flow Hedges \| Other expense, net
Derivatives and Hedges
Amount of Gain (Loss) Recognized in OCI	(5)	14	2	1
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	(2)	$ 18	(12)	$ 10
Derivatives designated as hedging instruments \| Interest rate risk \| Cash Flow Hedges \| Interest expense, net
Derivatives and Hedges
Amount of Gain (Loss) Recognized in OCI	(1)		(1)
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivatives and Hedges
Amount of Gain (Loss) Recognized in Other income (expense), net	$ 1		$ 7

Restructuring Accruals (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Restructuring Accruals (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restructuring accrual
Beginning balance, restructuring reserve	$ 53	$ 80	$ 69	$ 85
Charges	32	70	32	70
Write-down of assets to net realizable value		(53)		(53)
Net cash paid, principally severance and related benefits	(14)	(6)	(29)	(12)
Other, including foreign exchange translation	(1)	(4)	(2)	(3)
Ending balance, restructuring reserve	70	87	70	87
Restructuring, Additional Information
Carrying value of impaired assets	0	3	0	3
Cost of goods sold
Restructuring accrual
Charges		5		5
Selling and administrative expense
Restructuring accrual
Charges	2		2
Other expense, net
Restructuring accrual
Charges	30	65	30	65
Employee Costs
Restructuring accrual
Beginning balance, restructuring reserve	34	63	47	67
Charges	27	15	27	15
Net cash paid, principally severance and related benefits	(11)	(5)	(24)	(10)
Other, including foreign exchange translation		(2)		(1)
Ending balance, restructuring reserve	50	71	50	71
Asset Impairment
Restructuring accrual
Charges		53		53
Write-down of assets to net realizable value		(53)		(53)
Other Exit Costs
Restructuring accrual
Beginning balance, restructuring reserve	19	17	22	18
Charges	5	2	5	2
Net cash paid, principally severance and related benefits	(3)	(1)	(5)	(2)
Other, including foreign exchange translation	(1)	(2)	(2)	(2)
Ending balance, restructuring reserve	$ 20	$ 16	$ 20	$ 16

Pension Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Pension Benefit Plans (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
U.S.
Components of the net pension expense and postretirement benefit cost
Service cost	$ 3	$ 4	$ 6	$ 7
Interest cost	15	15	30	30
Expected asset return	(22)	(25)	(44)	(49)
Amortization:
Amortization of Actuarial loss	10	13	20	26
Net periodic pension cost	6	7	12	14
Non-U.S.
Components of the net pension expense and postretirement benefit cost
Service cost	3	3	6	7
Interest cost	7	8	15	16
Expected asset return	(11)	(14)	(22)	(27)
Amortization:
Amortization of Actuarial loss	3	$ 3	5	7
Net periodic pension cost	$ 2		$ 4	$ 3

Leases - Lease cost (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Leases - Lease cost (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2019
Lease cost
Amortization of right-of-use assets	$ 2	$ 3
Finance Lease, Interest Expense		1
Operating Lease, Cost	21	42
Total lease cost	$ 23	$ 46

Leases - Other Information (Details) $ in Millions	6 Months Ended
Leases - Other Information (Details) $ in Millions	Jun. 30, 2019 USD ($)
Leases
Operating cash flows from operating leases	$ 21
Operating cash flows from finance leases	1
Financing cash flows from finance leases	3
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 33

Leases - Supplemental balance sheet information (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018	Jun. 30, 2018
Operating leases:
Operating lease right-of-use assets (included in Other assets)	$ 196	$ 214
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating lease right-of-use assets (included in Other assets)
Current operating lease liabilities (included in Other current liabilities)	$ 67
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current operating lease liabilities (included in Other current liabilities)
Noncurrent operating lease liabilities (included in Other long-term liabilities)	$ 129
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Noncurrent operating lease liabilities (included in Other long-term liabilities)
Operating Lease, Liability	$ 196	$ 214
Finance leases:
Property, plant and equipment, net	3,216		$ 3,085	$ 3,025
Current finance lease liabilities (included in Long-term debt due within one year)	$ 6
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current finance lease liabilities (included in Long-term debt due within one year)
Noncurrent finance lease liabilities (included in Long-term debt)	$ 35
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Noncurrent finance lease liabilities (included in Long-term debt)
Finance Lease, Liability	$ 41
Weighted-average remaining lease term (in years):
Operating leases weighted-average remaining lease term (in years)	4 years 9 months 18 days
Finance leases weighted-average remaining lease term (in years)	7 years
Weighted-average discount rate:
Operating leases (as a percent)	3.80%
Finance leases (as a percent)	5.20%
Property, plant and equipment finance leases
Finance leases:
Property, plant and equipment, at cost	$ 74
Accumulated amortization	(30)
Property, plant and equipment, net	$ 44

Leases - Maturity of lease liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019
Operating leases
2019	$ 39
2020	61
2021	37
2022	28
2023	18
2024 and thereafter	32
Total lease payments	215
Less: imputed interest	(19)
Total operating lease liabilities	196	$ 214
Finance leases
2019	5
2020	8
2021	8
2022	6
2023	6
2024 and thereafter	17
Total lease payments	50
Less: imputed interest	(9)
Total finance lease liabilities	41
Lessee Finance Lease Lease Not Yet Commenced Amount	$ 85

Debt - Long-term Debt Summary (Details) $ / shares in Units, € in Millions, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019 USD ($) item $ / shares	Jun. 30, 2019 USD ($) item agreement $ / shares	Dec. 31, 2020 item	Jun. 30, 2019 EUR (€) item	Dec. 31, 2018 USD ($)	Dec. 31, 2018 EUR (€)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 EUR (€)
Debt Instrument
Total long-term debt	$ 6,265	$ 6,265			$ 5,214		$ 5,398
Less amounts due within one year	30	30			33		21
Long-term debt	$ 6,235	$ 6,235			5,181		5,377
Number financial maintenance covenants \| agreement		1
Weighted Average Interest Rate (as a percent)	3.71%	3.71%		3.71%
Secured Credit Agreement
Debt Instrument
Unused Credit	$ 1,100	$ 1,100
Revolving Loans
Debt Instrument
Total long-term debt	389	389
Term Loan A
Debt Instrument
Total long-term debt	1,496	1,496
Face Value	1,500	1,500
Net proceeds, after deducting debt issuance costs		1,496
Other secured debt
Debt Instrument
Total long-term debt	454	454			404		150
Senior Notes 6.75%, due 2020 (500 million EUR)
Debt Instrument
Total long-term debt	$ 567	$ 567		€ 500	570	€ 500	580	€ 500
Interest rate, stated percentage	6.75%	6.75%		6.75%
Fair values of fixed rate debt obligations
Principal Amount	$ 568	$ 568
Indicated Market Price (in dollars per share) \| $ / shares	$ 108.48	$ 108.48
Fair Value	$ 616	$ 616
Senior Notes 4.875%, due 2021 (330 million EUR)
Debt Instrument
Total long-term debt	$ 374	$ 374		€ 330	376	330	383	330
Interest rate, stated percentage	4.875%	4.875%		4.875%
Fair values of fixed rate debt obligations
Principal Amount	$ 375	$ 375
Indicated Market Price (in dollars per share) \| $ / shares	$ 108.35	$ 108.35
Fair Value	$ 406	$ 406
Senior Notes 5.00%, due 2022
Debt Instrument
Total long-term debt	$ 497	$ 497			497		496
Interest rate, stated percentage	5.00%	5.00%		5.00%
Fair values of fixed rate debt obligations
Principal Amount	$ 500	$ 500
Indicated Market Price (in dollars per share) \| $ / shares	$ 102.95	$ 102.95
Fair Value	$ 515	$ 515
Senior Notes 4.00%, due 2023
Debt Instrument
Total long-term debt	$ 307	$ 307			306		306
Interest rate, stated percentage	4.00%	4.00%		4.00%
Fair values of fixed rate debt obligations
Principal Amount	$ 310	$ 310
Indicated Market Price (in dollars per share) \| $ / shares	$ 100.37	$ 100.37
Fair Value	$ 311	$ 311
Senior Notes 3.125%, due 2024 (725 million EUR)
Debt Instrument
Total long-term debt	$ 845	$ 845		€ 725	825	€ 725	833	€ 725
Interest rate, stated percentage	3.125%	3.125%		3.125%
Fair values of fixed rate debt obligations
Principal Amount	$ 824	$ 824
Indicated Market Price (in dollars per share) \| $ / shares	$ 108.85	$ 108.85
Fair Value	$ 897	$ 897
Senior Notes 5.875%, due 2023
Debt Instrument
Total long-term debt	$ 689	$ 689			688		686
Interest rate, stated percentage	5.875%	5.875%		5.875%
Fair values of fixed rate debt obligations
Principal Amount	$ 700	$ 700
Indicated Market Price (in dollars per share) \| $ / shares	$ 107.36	$ 107.36
Fair Value	$ 752	$ 752
Senior Notes 6.375%, due 2025
Debt Instrument
Total long-term debt	$ 296	$ 296			295		295
Interest rate, stated percentage	6.375%	6.375%		6.375%
Fair values of fixed rate debt obligations
Principal Amount	$ 300	$ 300
Indicated Market Price (in dollars per share) \| $ / shares	$ 107.66	$ 107.66
Fair Value	$ 323	$ 323
Senior Notes 5.375%, due 2025
Debt Instrument
Total long-term debt	$ 298	$ 298			297		297
Interest rate, stated percentage	5.375%	5.375%		5.375%
Fair values of fixed rate debt obligations
Principal Amount	$ 300	$ 300
Indicated Market Price (in dollars per share) \| $ / shares	$ 103.49	$ 103.49
Fair Value	$ 310	$ 310
Finance Leases
Debt Instrument
Total long-term debt	41	41			45		50
Other debt
Debt Instrument
Total long-term debt	12	12			14		17
Revolving Credit Facility
Debt Instrument
Face Value	300	$ 300
Additional default interest rate per annum applied to all obligations owed under the Agreement		2.00%
Multicurrency Revolving Credit Facility
Debt Instrument
Total long-term debt	1,200	$ 1,200
Prior Agreement
Debt Instrument
Interest charges for write-off of finance fees	$ 2
Prior Agreement \| Revolving Loans
Debt Instrument
Total long-term debt							397
Prior Agreement \| Term Loan A
Debt Instrument
Total long-term debt					$ 897		$ 908
Minimum \| Secured Credit Agreement
Debt Instrument
Interest rate margin, Eurocurrency Rate loans (as a percent)	1.00%	1.00%		1.00%
Interest rate margin, Base Rate loans (as a percent)		0.00%
Minimum \| Revolving Credit Facility
Debt Instrument
Facility fee payable (as a percent)		0.20%
Maximum
Debt Instrument
Leverage Ratio \| item	5.0	5.0		5.0
Maximum Leverage Ratio may increase \| item	0.5	0.5		0.5
Maximum Borrowing Capacity	$ 3,000	$ 3,000
Maximum \| Secured Credit Agreement
Debt Instrument
Interest rate margin, Eurocurrency Rate loans (as a percent)	1.50%	1.50%		1.50%
Interest rate margin, Base Rate loans (as a percent)		0.50%
Maximum \| Revolving Credit Facility
Debt Instrument
Facility fee payable (as a percent)		0.30%
Maximum \| Forecast
Debt Instrument
Leverage Ratio \| item			4.50

Contingencies - Asbestos (Details)	6 Months Ended	12 Months Ended
Contingencies - Asbestos (Details)	Jun. 30, 2019 USD ($) lawsuit	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 1993 USD ($)
Asbestos
Sale of goods containing asbestos from 1948 to 1958	$ 40,000,000
Loss contingency, plaintiffs damages	$ 722,000,000
Approximate number of claims disposed of to date \| lawsuit	400,800
Average indemnity payment per claim	$ 10,000
Asbestos-related cash payments		$ 105,000,000	$ 110,000,000	$ 125,000,000
Cash payments per claim disposed including legal costs		86,000	83,000	71,000
Asbestos-related liability, total amount accrued beginning in 1993 through current reporting period before insurance recoveries	$ 5,000,000,000.0				$ 975,000,000
Accrual of asbestos related liability		602,000,000	582,000,000
Asbestos related charges		$ 125,000,000	$ 0	$ 0
Approximate number of plaintiffs and claimants asbestos claims pending against the entity
Number of pending plaintiffs and claimants \| lawsuit	1,020
Minimum
Asbestos
Period in which significant majority of claims to be received	5 years
Maximum
Asbestos
Period in which significant majority of claims to be received	7 years

Share Owners' Equity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Share Owners' Equity (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Increase (Decrease) in Share Owners' Equity
Balance	$ 1,542	$ 1,694	$ 1,502	$ 1,509
Net distribution to parent	(31)	(55)	(135)	(101)
Net earnings	70	56	154	158
Other comprehensive income (loss)	8	(240)	68	(111)
Balance	1,589	1,455	1,589	1,455
Other Contributed Capital
Increase (Decrease) in Share Owners' Equity
Balance	207	507	311	553
Net distribution to parent	(31)	(55)	(135)	(101)
Balance	176	452	176	452
Retained Earnings
Increase (Decrease) in Share Owners' Equity
Balance	3,083	2,720	3,004	2,623
Net earnings	65	50	144	147
Balance	3,148	2,770	3,148	2,770
Accumulated Other Comprehensive Loss
Increase (Decrease) in Share Owners' Equity
Balance	(1,870)	(1,663)	(1,927)	(1,786)
Other comprehensive income (loss)	20	(225)	77	(102)
Balance	(1,850)	(1,888)	(1,850)	(1,888)
Non-controlling Interests
Increase (Decrease) in Share Owners' Equity
Balance	122	130	114	119
Net earnings	5	6	10	11
Other comprehensive income (loss)	(12)	(15)	(9)	(9)
Balance	$ 115	$ 121	$ 115	$ 121

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1B
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Other comprehensive income (loss)	$ 8	$ (240)	$ 68	$ (111)
Net Effect of Exchange Rate Fluctuations
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of the period	(843)	(603)	(889)	(724)
Change before reclassifications	13	(253)	59	(132)
Other comprehensive income (loss)	13	(253)	59	(132)
Balance at end of the period	(830)	(856)	(830)	(856)
Change in Certain Derivative Instruments
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of the period	(6)	(10)	(11)	(5)
Change before reclassifications	(4)	18	7	4
Amounts reclassified from accumulated other comprehensive income	(6)	(18)	(17)	(9)
Translation effect	1	(1)	3	(1)
Tax effect			3
Other comprehensive income (loss)	(9)	(1)	(4)	(6)
Balance at end of the period	(15)	(11)	(15)	(11)
Employee Benefit Plans
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of the period	(1,021)	(1,050)	(1,027)	(1,057)
Change before reclassifications		(3)	(2)	(7)
Amounts reclassified from accumulated other comprehensive income	12	16	25	33
Translation effect	4	16	(1)	10
Other comprehensive income (loss)	16	29	22	36
Balance at end of the period	(1,005)	(1,021)	(1,005)	(1,021)
Accumulated Other Comprehensive Loss
Increase (Decrease) Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of the period	(1,870)	(1,663)	(1,927)	(1,786)
Change before reclassifications	9	(238)	64	(135)
Amounts reclassified from accumulated other comprehensive income	6	(2)	8	24
Translation effect	5	15	2	9
Tax effect			3
Other comprehensive income (loss)	20	(225)	77	(102)
Balance at end of the period	$ (1,850)	$ (1,888)	$ (1,850)	$ (1,888)

Other Expense (Income), net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Expense (Income), net
Restructuring, asset impairment and other charges	$ 38	$ 68	$ 38	$ 68
Foreign currency exchange (gain) loss			3	(2)
Intangible amortization expense	10	10	20	20
Royalty income	(4)	(3)	(7)	(6)
Other expense (income), net	11	(3)	11	(11)
Other Expense, net	$ 55	$ 72	$ 65	$ 69

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Supplemental Cash Flow Information
Interest paid in cash	$ 128	$ 128
Income taxes paid in cash	58	75
Amount of receivables sold	173	221	$ 600
Change in cash from operating activities from factoring program	427	233
U.S.
Supplemental Cash Flow Information
Income taxes paid in cash	(3)	7
Non-U.S.
Supplemental Cash Flow Information
Income taxes paid in cash	$ 61	$ 68

Discontinued Operations (Details) $ in Millions			1 Months Ended	3 Months Ended		6 Months Ended
Discontinued Operations (Details) $ in Millions	Dec. 06, 2018 Plant	Jul. 31, 2017 USD ($)	Mar. 31, 2018 subsidiary	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
Subsidiaries
Loss from discontinued operations				$ (1)		$ (1)	$ (1)
Discontinued Operations, Disposed of by Sale \| OI European Group B.V. ("OIEG")
Subsidiaries
Litigation settlement amount		$ 115
Loss from discontinued operations					$ 115
Disposed Venezuelan Subsidiaries
Subsidiaries
Expropriated plants \| Plant	2
Number of subsidiaries seeking an annulment \| subsidiary			2
Disposed Venezuelan Subsidiaries \| Maximum
Subsidiaries
Loss from discontinued operations						$ 1	$ 1

- Definition

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details

Business Combinations (Details) $ in Millions		1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
Business Combinations (Details) $ in Millions	Jun. 28, 2019 USD ($)	Jun. 30, 2019 item T	Jun. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Business Combinations
Cash paid for acquisition				$ 157
Fair value of the assets and liabilities assumed
Accounts receivable	$ 42
Inventory	17
Long lived assets (includes PP&E and intangibles)	164
Total assets	223
Accounts payable	25
Accrued liabilities	3
Net assets acquired	195
Nueva Fabrica Nacional de Vidrio, S. de R.L. de C.V. ("Nueva Fanal")
Business Combinations
Cash paid for acquisition	195		$ 157		$ 38
Number of furnaces in the Nueva Fanal facility \| item		4
Tonnage of glass containers produced by Nueva Fbrica Nacional de Vidrio, S. de R.L. de C.V. ("Nueva Fanal") \| T		300,000
Pro forma financial information	$ 0

Subsequent Events (Details) € in Millions, $ in Millions	3 Months Ended
Subsequent Events (Details) € in Millions, $ in Millions	Sep. 30, 2019 USD ($)	Jul. 31, 2019 EUR (€)	Jun. 30, 2019 EUR (€)	Jun. 30, 2019 USD ($)	Dec. 31, 2018 EUR (€)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 EUR (€)	Jun. 30, 2018 USD ($)
Subsequent Events
Total long-term debt \| $				$ 6,265		$ 5,214		$ 5,398
Senior Notes 6.75%, due 2020 (500 million EUR)
Subsequent Events
Total long-term debt			€ 500	$ 567	€ 500	$ 570	€ 500	$ 580
Interest rate, stated percentage			6.75%	6.75%
Subsequent Events
Subsequent Events
Total long-term debt \| €		€ 250
Subsequent Events \| Senior Notes 6.75%, due 2020 (500 million EUR)
Subsequent Events
Total long-term debt \| €		€ 250
Interest rate, stated percentage		6.75%
Write-off of deferred finance fees \| $	$ 24

Basis of Presentation (Details)	Jun. 30, 2019
Owens Illinois Inc.
Equity Method Investments
Owens-Illinois, Inc.'s ownership percentage in the Company	100.00%

Income Taxes (Details)	6 Months Ended
Income Taxes (Details)	Jun. 30, 2019
Income Taxes
Statutory U.S. Federal tax rate (as a percent)	21.00%

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
CONSOLIDATED BALANCE SHEETS
Trade receivables allowance	$ 34	$ 35	$ 35

Segment Information - Total Assets (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Assets
Total assets:	$ 10,723	$ 9,699	$ 9,818
Reportable Segment Totals
Assets
Total assets:	10,381	9,451	9,615
Americas
Assets
Total assets:	5,994	5,497	5,402
Europe
Assets
Total assets:	3,342	3,036	3,232
Asia Pacific
Assets
Total assets:	1,045	918	981
Other
Assets
Total assets:	$ 342	$ 248	$ 203

Leases (Details)	6 Months Ended
Leases (Details)	Jun. 30, 2019
Leases
Finance leases - option to extend	true
Operating leases - option to extend	true