EX-20 3 ex20_f10q2005.htm SUBSIDIARY GUARANTEES OF DEBT Exhibit 20 for Ball Corporation's Form 10-Q - 1st Qtr 2005

 

Exhibit 20

 

Subsidiary Guarantees of Debt

 

The company’s Senior Notes, Senior Subordinated 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 April 3, 2005, and December 31, 2004 (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.

 

Page 1 of 6

 

 

CONSOLIDATED BALANCE SHEET

 

 

April 3, 2005

 

 

Ball

 

Guarantor

 

Non-Guarantor

 

Eliminating

 

Consolidated

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Adjustments

 

Total

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

$        11.1

 

$           1.0

 

$           74.7

 

$          –

 

$         86.8

Receivables, net

0.4

 

105.2

 

335.4

 

–

 

441.0

Inventories, net

–

 

482.5

 

232.0

 

–

 

714.5

Prepaid common stock repurchase

108.5

 

–

 

–

 

–

 

108.5

Deferred taxes, prepaids and other current assets

 

313.7

 

 

180.6

 

 

16.8

 

 

(426.0)

 

 

85.1

 

 

 

 

 

Total current assets

433.7

 

769.3

 

658.9

 

(426.0)

 

1,435.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, at cost

40.3

 

1,965.7

 

1,009.9

 

–

 

3,015.9

Accumulated depreciation

(14.9)

 

(1,167.9)

 

(298.3)

 

–

 

(1,481.1)

 

 

 

 

 

 

25.4

 

797.8

 

711.6

 

–

 

1,534.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in subsidiaries

2,019.5

 

679.6

 

9.8

 

(2,708.9)

 

–

Investments in affiliates

2.9

 

15.7

 

46.8

 

–

 

65.4

Goodwill

–

 

340.3

 

1,021.5

 

–

 

1,361.8

Intangibles and other assets, net

87.6

 

56.3

 

76.5

 

–

 

220.4

 

 

 

 

 

Total Assets

$     2,569.1

 

$     2,659.0

 

$       2,525.1

 

$   (3,134.9)

 

$     4,618.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Short-term debt and current portion of long-term debt

 

$           7.8

 

 

$           3.3

 

 

$         133.9

 

 

$           –

 

 

$      145.0

Accounts payable

61.1

 

242.3

 

206.5

 

–

 

509.9

Accrued employee costs

21.4

 

86.5

 

25.6

 

–

 

133.5

Income taxes payable

–

 

467.8

 

69.3

 

(425.9)

 

111.2

Other current liabilities

42.4

 

27.0

 

50.3

 

–

 

119.7

 

 

 

 

 

Total current liabilities

132.7

 

826.9

 

485.6

 

(425.9)

 

1,019.3

 

 

 

 

 

 

 

 

 

 

Long-term debt

1,177.4

 

20.9

 

432.7

 

–

 

1,631.0

Intercompany borrowings

24.3

 

461.3

 

213.3

 

(698.9)

 

–

Employee benefit obligations

137.6

 

185.6

 

417.6

 

–

 

740.8

Deferred taxes and other liabilities

(23.7)

 

20.0

 

103.5

 

–

 

99.8

 

 

 

 

 

Total liabilities

1,448.3

 

1,514.7

 

1,652.7

 

(1,124.8)

 

3,490.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingencies

 

 

 

 

 

 

 

 

 

Minority interests

–

 

–

 

6.6

 

–

 

6.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

Convertible preferred stock

–

 

–

 

179.6

 

(179.6)

 

–

 

 

 

 

 

Preferred shareholders’ equity

–

 

–

 

179.6

 

(179.6)

 

–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

621.2

 

726.0

 

681.1

 

(1,407.1)

 

621.2

Retained earnings (deficit)

1,055.0

 

561.3

 

(109.0)

 

(452.3)

 

1,055.0

Accumulated other comprehensive earnings (loss)

 

6.8

 

 

(143.0)

 

 

114.1

 

 

28.9

 

 

6.8

Treasury stock, at cost

(562.2)

 

–

 

–

 

–

 

(562.2)

 

 

 

 

 

Common shareholders’ equity

1,120.8

 

1,144.3

 

686.2

 

(1,830.5)

 

1,120.8

 

 

 

 

 

Total shareholders’ equity

1,120.8

 

1,144.3

 

865.8

 

(2,010.1)

 

1,120.8

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$      2,569.1

 

 

$      2,659.0

 

 

$        2,525.1

 

 

$    (3,134.9)

 

 

$      4,618.3

 

 

 

 

 

 

Page 2 of 6

 

 

 

CONSOLIDATED BALANCE SHEET

 

 

December 31, 2004

 

 

Ball

 

Guarantor

 

Non-Guarantor

 

Eliminating

 

Consolidated

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Adjustments

 

Total

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$       113.8

 

$           0.6

 

$          84.3

 

$          –

 

$    198.7

Receivables, net

0.5

 

87.0

 

259.3

 

–

 

  346.8

Inventories, net

–

 

402.8

 

226.7

 

 –

 

  629.5

Deferred taxes and prepaid expenses

323.2

 

167.6

 

17.8

 

(438.0)

 

  70.6

 

 

 

 

 

Total current assets

437.5

 

658.0

 

588.1

 

(438.0)

 

  1,245.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, at cost

39.3

 

1,932.4

 

1,002.8

 

–

 

  2,974.5

Accumulated depreciation

(14.2)

 

(1,140.2)

 

(287.7)

 

-

 

  (1,442.1)

 

 

 

 

 

 

25.1

 

792.2

 

715.1

 

–

 

  1,532.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in subsidiaries

1,995.9

 

680.1

 

9.8

 

(2,685.8)

 

  –

Investment in affiliates

2.8

 

32.9

 

47.4

 

–

 

  83.1

Goodwill

–

 

338.1

 

1,071.9

 

-

 

  1,410.0

Intangibles and other assets, net

74.6

 

53.8

 

78.2

 

-

 

  206.6

 

 

 

 

 

 

$   2,535.9

 

$    2,555.1

 

$     2,510.5

 

$    (3,123.8)

 

$ 4,477.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Short-term debt and current portion of long-term debt

 

$          9.8

 

 

$           3.3

 

 

$        109.9

 

 

$            –

 

 

$      123.0

Accounts payable

55.2

 

218.5

 

179.3

 

–

 

    453.0

Accrued employee costs

15.6

 

168.7

 

37.9

 

–

 

    222.2

Income taxes payable

–

 

450.9

 

67.7

 

(438.2)

 

80.4

Other current liabilities

31.9

 

30.3

 

55.5

 

–

 

    117.7

 

 

 

 

 

Total current liabilities

112.5

 

871.7

 

450.3

 

(438.2)

 

    996.3

 

 

 

 

 

 

 

 

 

 

Long-term debt

1,045.2

 

22.7

 

469.8

 

–

 

    1,537.7

Intercompany borrowings

165.8

 

382.6

 

150.5

 

(698.9)

 

–

Employee benefit obligations

144.1

 

150.8

 

439.4

 

–

 

    734.3

Deferred taxes and other liabilities

(18.3)

 

21.1

 

113.6

 

–

 

    116.4

 

 

 

 

 

Total liabilities

1,449.3

 

1,448.9

 

1,623.6

 

(1,137.1)

 

    3,384.7

 

 

 

 

 

Contingencies

 

 

 

 

 

 

 

 

 

Minority interests

–

 

–

 

6.4

 

 –

 

    6.4

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

Convertible preferred stock

 –

 

–

 

179.6

 

(179.6)

 

    –

 

 

 

 

 

Preferred shareholders’ equity

 –

 

–

 

179.6

 

(179.6)

 

    –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

610.8

 

726.0

 

681.1

 

(1,407.1)

 

    610.8

Retained earnings

1,007.5

 

524.2

 

(124.2)

 

(400.0)

 

    1,007.5

Accumulated other comprehensive earnings (loss)

 

33.2

 

 

(144.0)

 

 

144.0

 

 

–

 

 

    33.2

Treasury stock, at cost

(564.9)

 

–

 

–

 

–

 

    (564.9)

 

 

 

 

 

Common shareholders’ equity

1,086.6

 

1,106.2

 

700.9

 

(1,807.1)

 

    1,086.6

 

 

 

 

 

Total shareholders’ equity

1,086.6

 

1,106.2

 

880.5

 

(1,986.7)

 

    1,086.6

 

 

 

 

 

 

$   2,535.9

 

$    2,555.1

 

$     2,510.5

 

$    (3,123.8)

 

$   4,477.7

 

 

 

 

 

 

Page 3 of 6

 

 

 

For the Three Months Ended April 3, 2005

 

 

Ball

 

Guarantor

 

Non-Guarantor

 

Eliminating

 

Consolidated

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Adjustments

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$        –

 

$   1,026.0

 

$        352.6

 

$       (54.5)

 

$    1,324.1

Costs and expenses

 

 

 

 

 

 

 

 

 

Cost of sales (excluding depreciation and amortization)

 

–

 

 

873.6

 

 

277.7

 

 

(54.5)

 

 

1,096.8

Depreciation and amortization

0.7

 

32.5

 

20.2

 

–

 

53.4

Selling, general and administrative

4.0

 

39.3

 

19.7

 

–

 

63.0

Interest expense

6.0

 

10.3

 

9.5

 

–

 

25.8

Equity in results of subsidiaries

(55.6)

 

–

 

–

 

55.6

 

–

Corporate allocations

(16.2)

 

14.5

 

1.7

 

–

 

–

 

 

 

 

 

 

(61.1)

 

970.2

 

328.8

 

1.1

 

1,239.0

 

 

 

 

 

Earnings (loss) before taxes

61.1

 

55.8

 

23.8

 

(55.6)

 

85.1

Tax provision

(2.5)

 

(20.3)

 

(7.0)

 

–

 

(29.8)

Minority interests

–

 

–

 

(0.2)

 

–

 

(0.2)

Equity in results of affiliates

–

 

0.3

 

3.2

 

–

 

3.5

 

 

 

 

 

Net earnings (loss)

$       58.6

 

$       35.8

 

$         19.8

 

$      (55.6)

 

$        58.6

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF EARNINGS

 

 

For the Three Months Ended April 4, 2004

 

 

Ball

 

Guarantor

 

Non-Guarantor

 

Eliminating

 

Consolidated

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Adjustments

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$        –

 

$     947.7

 

$       338.6

 

$      (54.8)

 

$    1,231.5

Costs and expenses

 

 

 

 

 

 

 

 

 

Cost of sales (excluding depreciation and amortization)

 

–

 

 

805.9

 

 

261.4

 

 

(54.8)

 

 

1,012.5

Depreciation and amortization

0.5

 

33.2

 

20.1

 

–

 

53.8

Selling, general and administrative

10.2

 

34.4

 

26.5

 

–

 

71.1

Interest expense

3.4

 

13.2

 

11.7

 

–

 

28.3

Equity in results of subsidiaries

(46.3)

 

–

 

–

 

46.3

 

–

Corporate allocations

(15.7)

 

14.0

 

1.7

 

–

 

–

 

 

 

 

 

 

(47.9)

 

900.7

 

321.4

 

(8.5)

 

1,165.7

 

 

 

 

 

Earnings (loss) before taxes

47.9

 

47.0

 

17.2

 

(46.3)

 

65.8

Tax provision

(1.1)

 

(16.9)

 

(3.5)

 

–

 

(21.5)

Minority interests

–

 

–

 

(0.3)

 

–

 

(0.3)

Equity in results of affiliates

–

 

0.7

 

2.1

 

–

 

2.8

 

 

 

 

 

Net earnings (loss)

$       46.8

 

$       30.8

 

$         15.5

 

$      (46.3)

 

$        46.8

 

 

 

 

 

 

 

Page 4 of 6

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

For the Three Months Ended April 3, 2005

 

 

Ball

 

Guarantor

 

Non-Guarantor

 

Eliminating

 

Consolidated

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Adjustments

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net earnings (loss)

$       58.6

 

$       35.8

 

$         19.8

 

$     (55.6)

 

$       58.6

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

0.7

 

32.5

 

20.2

 

–

 

53.4

Deferred taxes

(0.1)

 

(5.5)

 

(6.2)

 

–

 

(11.8)

Equity in results of subsidiaries

(55.6)

 

–

 

–

 

55.6

 

–

Other, net

3.0

 

(2.6)

 

(4.5)

 

–

 

(4.1)

Prepaid common stock repurchase

(108.5)

 

–

 

–

 

–

 

(108.5)

Changes in other working capital components

 

13.7

 

 

(97.0)

 

 

(65.3)

 

 

–

 

 

(148.6)

 

 

 

 

 

Net cash used in operating activities

(88.2)

 

(36.8)

 

(36.0)

 

–

 

(161.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

(1.0)

 

(39.3)

 

(40.3)

 

–

 

(80.6)

Investments in and advances to affiliates, net of dividends

 

(133.2)

 

 

78.1

 

 

55.1

 

 

–

 

 

–

Other, net

(10.1)

 

0.3

 

1.9

 

–

 

(7.9)

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(144.3)

 

 

39.1

 

 

16.7

 

 

–

 

 

(88.5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Long-term borrowings

135.0

 

–

 

–

 

–

 

135.0

Repayments of long-term borrowings

(8.8)

 

(1.9)

 

(16.0)

 

–

 

(26.7)

Change in short-term borrowings

6.0

 

–

 

28.0

 

–

 

34.0

Proceeds from issuance of common stock

10.8

 

–

 

–

 

–

 

10.8

Acquisitions of treasury stock

(2.1)

 

–

 

–

 

–

 

(2.1)

Common dividends

(11.1)

 

–

 

–

 

–

 

(11.1)

 

Net cash provided by (used in) financing activities

 

129.8

 

 

(1.9)

 

 

12.0

 

 

–

 

 

139.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

–

 

–

 

(2.3)

 

–

 

(2.3)

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

(102.7)

 

0.4

 

(9.6)

 

–

 

(111.9)

Cash and cash equivalents – Beginning of period

 

113.8

 

 

0.6

 

 

84.3

 

 

–

 

 

198.7

 

 

 

 

 

Cash and cash equivalents –

End of period

 

$      11.1

 

 

$        1.0

 

 

$        74.7

 

 

$        –

 

 

$      86.8

 

 

 

 

 

 

Page 5 of 6

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

For the Three Months Ended April 4, 2004

 

 

Ball

 

Guarantor

 

Non-Guarantor

 

Eliminating

 

Consolidated

 

Corporation

 

Subsidiaries

 

Subsidiaries

 

Adjustments

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net earnings (loss)

$       46.8

 

$       30.8

 

$         15.5

 

$      (46.3)

 

$       46.8

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

0.5

 

33.2

 

20.1

 

–

 

53.8

Deferred taxes

6.1

 

0.6

 

1.6

 

–

 

8.3

Equity in results of subsidiaries

(46.3)

 

–

 

–

 

46.3

 

–

Other

8.0

 

0.8

 

3.0

 

–

 

11.8

Changes in working capital components, excluding effects of acquisitions

 

(52.9)

 

 

6.1

 

 

(143.3)

 

 

–

 

 

(190.1)

 

 

 

 

 

Net cash provided by (used in) operating activities

 

(37.8)

 

 

71.5

 

 

(103.1)

 

 

–

 

 

(69.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

(1.0)

 

(20.1)

 

(13.8)

 

–

 

(34.9)

Business acquisition, net of cash acquired

–

 

(17.0)

 

–

 

–

 

(17.0)

Investments in and advances to affiliates, net of dividends

 

(85.3)

 

 

(35.2)

 

 

120.5

 

 

–

 

 

–

Other

(8.7)

 

3.1

 

(0.2)

 

–

 

(5.8)

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(95.0)

 

 

(69.2)

 

 

106.5

 

 

–

 

 

(57.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Long-term borrowings

108.4

 

  –

 

–

 

–

 

108.4

Repayments of long-term borrowings

–

 

(0.8)

 

(54.4)

 

–

 

(55.2)

Change in short-term borrowings

50.0

 

–

 

52.1

 

–

 

102.1

Proceeds from issuance of common stock

7.7

 

–

 

–

 

–

 

7.7

Acquisitions of treasury stock

(22.3)

 

–

 

–

 

–

 

(22.3)

Common dividends

(8.4)

 

–

 

–

 

–

 

(8.4)

Other

–

 

–

 

(0.4)

 

–

 

(0.4)

 

Net cash provided by (used in) financing activities

 

135.4

 

 

(0.8)

 

 

(2.7)

 

 

–

 

 

131.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

–

 

–

 

(0.1)

 

–

 

(0.1)

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash

equivalents

 

2.6

 

 

1.5

 

 

0.6

 

 

–

 

 

4.7

Cash and cash equivalents – Beginning of period

 

8.8

 

 

0.9

 

 

26.8

 

 

–

 

 

36.5

 

 

 

 

 

Cash and cash equivalents –

End of period

 

$       11.4

 

 

$         2.4

 

 

$         27.4

 

 

$         –

 

 

$       41.2

 

 

 

 

 

 

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