EX-20 4 ex20-1_f10q3qtr2003.htm EXHIBIT 20.1 SUBSIDIARY GUARANTEES OF DEBT Exhibit 20.1 of Ball Corporation’s Form 10-Q for 3rd Qtr 2003

EXHIBIT 20.1

Subsidiary Guarantees of Debt

The company’s senior notes and senior credit facilities are guaranteed on a full, unconditional and joint and several basis by certain of the company’s wholly owned domestic subsidiaries. The following is condensed, consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of September 28, 2003, and December 31, 2002 (in millions of dollars). The presentation of certain prior-year amounts has been changed in order to conform to the current-year presentation. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements would not be material to investors.

	CONSOLIDATED BALANCE SHEET
	September 28, 2003
	Ball Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Adjustments			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	16	.7	$	3	.1	$	38	.6	$	--		$	58	.4
Receivables, net		1	.1		151	.9		401	.4		--			554	.4
Inventories, net		--			361	.1		163	.8		--			524	.9
Deferred taxes and prepaid expenses		(30	.5)		434	.0		4	.8		(360	.5)		47	.8

Total current assets		(12	.7)		950	.1		608	.6		(360	.5)		1,185	.5

Property, plant and equipment, at cost		37	.2		1,813	.6		803	.4		--			2,654	.2
Accumulated depreciation		(15	.5)		(1,023	.5)		(178	.5)		--			(1,217	.5)

		21	.7		790	.1		624	.9		--			1,436	.7

Investments in subsidiaries		1,782	.7		466	.6		9	.8		(2,259	.1)		--
Investments in affiliates		5	.7		28	.3		55	.5		--			89	.5
Goodwill, net		--			339	.1		906	.8		--			1,245	.9
Intangibles and other assets, net		46	.9		104	.6		112	.8		--			264	.3

Total Assets	$	1,844	.3	$	2,678	.8	$	2,318	.4	$	(2,619	.6)	$	4,221	.9

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term debt and current portion of long-term debt	$	3	.5	$	--		$	147	.1	$	--		$	150	.6
Accounts payable		(7	.9)		240	.9		173	.7		--			406	.7
Accrued employee costs		17	.3		106	.0		29	.6		--			152	.9
Income taxes payable and other current liabilities		46	.6		392	.6		156	.1		(360	.5)		234	.8

Total current liabilities		59	.5		739	.5		506	.5		(360	.5)		945	.0
Long-term debt		1,265	.9		10	.1		524	.5		--			1,800	.5
Intercompany borrowings		16	.0		525	.0		157	.9		(698	.9)		--
Employee benefit obligations		127	.0		171	.1		401	.9		--			700	.0
Deferred taxes and other liabilities		(310	.6)		292	.6		101	.6		--			83	.6

Total liabilities		1,157	.8		1,738	.3		1,692	.4		(1,059	.4)		3,529	.1

Contingencies
Minority interests		--			--			6	.3		--			6	.3

Shareholders’ equity: Convertible preferred stock		--			--			179	.6		(179	.6)		--

Preferred shareholders’ equity		--			--			179	.6		(179	.6)		--

Common stock		538	.1		726	.0		687	.6		(1,413	.6)		538	.1
Retained earnings (deficit)		718	.3		278	.8		(211	.7)		(67	.1)		718	.3
Accumulated other comprehensive loss		(71	.3)		(64	.3)		(35	.8)		100	.1		(71	.3)
Treasury stock, at cost		(498	.6)		--			--			--			(498	.6)

Common shareholders’ equity (deficit)		686	.5		940	.5		440	.1		(1,380	.6)		686	.5

Total shareholders’ equity		686	.5		940	.5		619	.7		(1,560	.2)		686	.5

Total Liabilities and Shareholders’ Equity	$	1,844	.3	$	2,678	.8	$	2,318	.4	$	(2,619	.6)	$	4,221	.9

	CONSOLIDATED BALANCE SHEET
	December 31, 2002
	Ball Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Adjustments			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	47	.6	$	0	.3	$	211	.3	$	--		$	259	.2
Receivables, net		0	.8		155	.3		189	.8		--			345	.9
Inventories, net		--			362	.1		190	.4		--			552	.5
Deferred taxes and prepaid expenses		247	.3		137	.4		1	.6		(319	.4)		66	.9

Total current assets		295	.7		655	.1		593	.1		(319	.4)		1,224	.5

Property, plant and equipment, at cost		33	.4		1,749	.9		744	.0		--			2,527	.3
Accumulated depreciation		(15	.0)		(945	.2)		(121	.2)		--			(1,081	.4)

		18	.4		804	.7		622	.8		--			1,445	.9

Investments in subsidiaries		1,736	.9		380	.8		9	.8		(2,127	.5)		--
Investments in affiliates		5	.8		18	.6		53	.9		--			78	.3
Goodwill, net		--			319	.9		828	.2		--			1,148	.1
Intangibles and other assets, net		38	.5		112	.1		85	.0		--			235	.6

Total Assets	$	2,095	.3	$	2,291	.2	$	2,192	.8	$	(2,446	.9)	$	4,132	.4

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term debt and current portion of long-term debt	$	3	.5	$	--		$	123	.5	$	--		$	127	.0
Accounts payable		9	.9		252	.3		177	.4		--			439	.6
Accrued employee costs		15	.5		109	.3		22	.3		--			147	.1
Income taxes payable		--			307	.9		65	.6		(319	.4)		54	.1
Other current liabilities		49	.1		35	.2		216	.8		--			301	.1

Total current liabilities		78	.0		704	.7		605	.6		(319	.4)		1,068	.9
Long-term debt		1,317	.9		10	.1		526	.0		--			1,854	.0
Intercompany borrowings		112	.3		390	.5		196	.1		(698	.9)		--
Employee benefit obligations		121	.8		173	.8		350	.9		--			646	.5
Deferred taxes and other liabilities		(27	.6)		(1	.3)		93	.4		--			64	.5

Total liabilities		1,602	.4		1,277	.8		1,772	.0		(1,018	.3)		3,633	.9

Contingencies
Minority interests		--			--			5	.6		--			5	.6

Shareholders’ equity:
Convertible preferred stock		--			--			179	.6		(179	.6)		--

Preferred shareholders’ equity		--			--			179	.6		(179	.6)		--

Common stock		514	.5		724	.6		563	.2		(1,287	.8)		514	.5
Retained earnings (deficit)		562	.0		364	.9		(293	.6)		(71	.3)		562	.0
Accumulated other comprehensive loss		(138	.3)		(76	.1)		(34	.0)		110	.1		(138	.3)
Treasury stock, at cost		(445	.3)		--			--			--			(445	.3)

Common shareholders’ equity		492	.9		1,013	.4		235	.6		(1,249	.0)		492	.9

Total shareholders’ equity		492	.9		1,013	.4		415	.2		(1,428	.6)		492	.9

Total Liabilities and Shareholders’ Equity	$	2,095	.3	$	2,291	.2	$	2,192	.8	$	(2,446	.9)	$	4,132	.4

	CONSOLIDATED STATEMENT OF EARNINGS
	For the Three Months Ended September 28, 2003
	Ball Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Adjustments			Consolidated Total
Net sales	$	--		$	1,032	.9	$	414	.2	$	(87	.8)	$	1,359	.3
Costs and expenses
Cost of sales (excluding
depreciation and amortization)		--			879	.9		315	.3		(87	.8)		1,107	.4
Depreciation and amortization		0	.7		32	.7		16	.5		--			49	.9
Business consolidation costs		--			(0	.2)		(3	.3)		--			(3	.5)
Selling and administrative		8	.9		34	.9		18	.4		--			62	.2
Interest expense		29	.1		6	.4		10	.6		--			46	.1
Equity in results of subsidiaries		(82	.6)		--			--			82	.6		--
Corporate allocations		(17	.3)		15	.9		1	.4		--			--

		(61	.2)		969	.6		358	.9		(5	.2)		1,262	.1

Earnings (loss) before taxes		61	.2		63	.3		55	.3		(82	.6)		97	.2
Tax provision		7	.6		(23	.4)		(13	.3)		--			(29	.1)
Minority interests		--			--			(0	.2)		--			(0	.2)
Equity in results of affiliates		--			0	.3		0	.6		--			0	.9

Net earnings (loss)	$	68	.8	$	40	.2	$	42	.4	$	(82	.6)	$	68	.8

	CONSOLIDATED STATEMENT OF EARNINGS
	For the Three Months Ended September 29, 2002
	Ball Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Adjustments			Consolidated Total
Net sales	$	--		$	1,010	.2	$	107	.5	$	(79	.1)	$	1,038	.6
Costs and expenses
Cost of sales (excluding depreciation and amortization)		--			855	.5		90	.4		(79	.1)		866	.8
Depreciation and amortization		0	.5		31	.5		4	.2		--			36	.2
Selling and administrative		6	.3		30	.3		5	.6		--			42	.2
Interest expense		20	.9		(4	.3)		2	.2		--			18	.8
Equity in results of subsidiaries		(55	.4)		--			--			55	.4		--
Corporate allocations		(14	.9)		14	.9		--			--			--

		(42	.6)		927	.9		102	.4		(23	.7)		964	.0

Earnings (loss) before taxes		42	.6		82	.3		5	.1		(55	.4)		74	.6
Tax provision		7	.4		(31	.9)		(1	.6)		--			(26	.1)
Minority interests		--			--			(0	.6)		--			(0	.6)
Equity in results of affiliates		--			1	.0		1	.1		--			2	.1

Net earnings (loss)	$	50	.0	$	51	.4	$	4	.0	$	(55	.4)	$	50	.0

	CONSOLIDATED STATEMENT OF EARNINGS
	For the Nine Months Ended September 28, 2003
	Ball Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Adjustments			Consolidated Total
Net sales	$	--		$	2,907	.4	$	1,076	.5	$	(200	.4)	$	3,783	.5
Costs and expenses
Cost of sales (excluding depreciation and amortization)		--			2,470	.2		833	.2		(200	.4)		3,103	.0
Depreciation and amortization		1	.8		97	.3		52	.2		--			151	.3
Business consolidation costs		--			1	.7		(3	.8)		--			(2	.1)
Selling and administrative		22	.2		98	.5		52	.2		--			172	.9
Interest expense		49	.4		27	.6		34	.5		--			111	.5
Equity in net results of subsidiaries		(190	.6)		--			--			190	.6		--
Corporate allocations		(45	.8)		41	.4		4	.4		--			--

		(163	.0)		2,736	.7		972	.7		(9	.8)		3,536	.6

Earnings (loss) before taxes		163	.0		170	.7		103	.8		(190	.6)		246	.9
Provision for taxes		11	.6		(63	.0)		(26	.9)		--			(78	.3)
Minority interests		--			--			(0	.7)		--			(0	.7)
Equity in net results of affiliates		--			1	.0		5	.7		--			6	.7

Earnings (loss) attributable to common shareholders	$	174	.6	$	108	.7	$	81	.9	$	(190	.6)	$	174	.6

	CONSOLIDATED STATEMENT OF EARNINGS
	For the Nine months Ended September 29, 2002
	Ball Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Adjustments			Consolidated Total
Net sales	$	--		$	2,854	.9	$	281	.3	$	(187	.5)	$	2,948	.7
Costs and expenses
Cost of sales (excluding depreciation and amortization)		--			2,425	.2		237	.7		(187	.5)		2,475	.4
Depreciation and amortization		1	.5		94	.9		12	.6		--			109	.0
Selling and administrative		19	.2		86	.0		14	.6		--			119	.8
Interest expense		40	.9		7	.7		6	.5		--			55	.1
Equity in net results of subsidiaries		(135	.4)		--			--			135	.4		--
Corporate allocations		(40	.6)		40	.6		--			--			--

		(114	.4)		2,654	.4		271	.4		(52	.1)		2,759	.3

Earnings (loss) before taxes		114	.4		200	.5		9	.9		(135	.4)		189	.4
Provision for taxes		13	.2		(76	.2)		(3	.3)		--			(66	.3)
Minority interests		--			--			(1	.4)		--			(1	.4)
Equity in net results of affiliates		(0	.2)		2	.4		3	.5		--			5	.7

Earnings (loss) attributable to common shareholders	$	127	.4	$	126	.7	$	8	.7	$	(135	.4)	$	127	.4

	CONSOLIDATED STATEMENT OF CASH FLOWS
	For the Nine Months Ended September 28, 2003
	Ball Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Adjustments			Consolidated Total
Cash flows from operating activities
Net earnings (loss)	$	174	.6	$	108	.7	$	81	.9	$	(190	.6)	$	174	.6
Noncash charges to net earnings:
Depreciation and amortization		1	.8		97	.3		52	.2		--			151	.3
Deferred taxes		11	.7		23	.2		0	.8		--			35	.7
Equity in results of subsidiaries		(190	.6)		--			--			190	.6		--
Other		5	.6		(12	.1)		4	.8		--			(1	.7)
Early debt extinguishment costs:
Debt prepayment costs		10	.3		--			--			--			10	.3
Noncash write off of unamortized deferred financing costs		4	.9		--			--			--			4	.9
Withholding tax payment related to European acquisition		--			--			(138	.3)		--			(138	.3)
Changes in working capital components, excluding effects of acquisitions		(30	.0)		31	.9		(200	.5)		--			(198	.6)

Net cash provided by (used in) operating activities		(11	.7)		249	.0		(199	.1)		--			38	.2

Cash flows from investing activities
Additions to property, plant and equipment		(4	.6)		(82	.2)		(11	.7)		--			(98	.5)
Business acquisition		--			(28	.0)		--			--			(28	.0)
Ball Packaging Europe purchase price adjustments		--			--			31	.1		--			31	.1
Investments in and advances to affiliates, net of dividends		107	.4		(136	.3)		28	.9		--			--
Other		(9	.7)		0	.3		2	.3		--			(7	.1)

Net cash provided by (used in) investing activities		93	.1		(246	.2)		50	.6		--			(102	.5)

Cash flows from financing activities
Repayments of long-term borrowings		(53	.0)		--			(44	.2)		--			(97	.2)
Change in short-term borrowings		--			--			19	.1		--			19	.1
Debt prepayment costs		(10	.3)		--			--			--			(10	.3)
Proceeds from issuance of common stock under various employee and shareholder plans		25	.5		--			--			--			25	.5
Acquisitions of treasury stock		(56	.4)		--			--			--			(56	.4)
Common dividends		(18	.4)		--			--			--			(18	.4)
Other		0	.3		--			0	.5		--			0	.8

Net cash used in financing activities		(112	.3)		--			(24	.6)		--			(136	.9)

Effect of exchange rate changes on cash		--			--			0	.4		--			0	.4
Net Change in Cash and Cash Equivalents		(30	.9)		2	.8		(172	.7)		--			(200	.8)
Cash and Cash Equivalents - Beginning of Period		47	.6		0	.3		211	.3		--			259	.2

Cash and Cash Equivalents - End of Period	$	16	.7	$	3	.1	$	38	.6	$	--		$	58	.4

	CONSOLIDATED STATEMENT OF CASH FLOWS
	For the Nine months Ended September 29, 2002
	Ball Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Adjustments			Consolidated Total
Cash Flows from Operating Activities
Net earnings (loss)	$	127	.4	$	126	.7	$	8	.7	$	(135	.4)	$	127	.4
Noncash charges to net earnings:
Depreciation and amortization		1	.5		94	.9		12	.6		--			109	.0
Deferred taxes		(15	.4)		23	.4		0	.1		--			8	.1
Equity in net results of subsidiaries		(135	.4)		--						135	.4
Other, net		14	.7		(16	.0)		(2	.7)		--			(4	.0)
Changes in working capital components		(16	.4)		11	.9		15	.4		--			10	.9

Net cash provided by (used in) operating activities		(23	.6)		240	.9		34	.1		--			251	.4

Cash Flows from Investing Activities
Additions to property, plant and equipment		(2	.1)		(80	.3)		(5	.3)		--			(87	.7)
Acquisitions of previously leased assets		--			(43	.1)		--			--			(43	.1)
Investments in and advances to affiliates, net of dividends		152	.8		(128	.5)		(24	.3)		--			--
Miscellaneous investments and other, net		(5	.2)		11	.3		(25	.0)		--			(18	.9)

Net cash provided by (used in) investing activities		145	.5		(240	.6)		(54	.6)		--			(149	.7)

Cash Flows from Financing Activities
Repayments of long-term borrowings		(50	.2)		--			--			--			(50	.2)
Change in short-term borrowings		--			--			3	.9		--			3	.9
Common dividends		(15	.3)		--			--			--			(15	.3)
Proceeds from issuance of common stock under various employee and shareholder plans		29	.3		--			--			--			29	.3
Acquisitions of treasury stock		(94	.3)		--			--			--			(94	.3)

Net cash provided by (used in) financing activities		(130	.5)		--			3	.9		--			(126	.6)

Net Change in Cash and Cash Equivalents		(8	.6)		0	.3		(16	.6)		--			(24	.9)
Cash and Cash Equivalents - Beginning of Period		52	.7		0	.4		30	.0		--			83	.1

Cash and Cash Equivalents - End of Period	$	44	.1	$	0	.7	$	13	.4	$	--		$	58	.2