EX-20 7 ex20.htm EX 20 SUBSIDIARIES GUARANTEE OF DEBT Exhibit 20 for Ball Corporation's Form 10-Q for 2nd 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 July 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.


CONSOLIDATED BALANCE SHEET
July 3, 2005
Ball
Corporation

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminating
Adjustments

Consolidated
Total

ASSETS                        
Current assets  
  Cash and cash equivalents   $ 7.0   $ 0.9   $ 67.8   $   $ 75.7  
  Receivables, net    (0.1 )  120.4    422.7        543.0  
  Inventories, net        447.6    210.0        657.6  
  Deferred taxes, prepaids and other
    current assets
    357.4    161.5    18.6    (449.0 )  88.5  





    Total current assets    364.3    730.4    719.1    (449.0 )  1,364.8  





Property, plant and equipment, at cost    41.7    1,997.5    971.9        3,011.1  
Accumulated depreciation    (15.6 )  (1,192.4 )  (298.6 )      (1,506.6 )





                       26.1    805.1    673.3        1,504.5  





Investments in subsidiaries    2,037.6    679.6    9.8    (2,727.0 )    
Investments in affiliates    2.9    17.6    43.3        63.8  
Goodwill        340.0    947.9        1,287.9  
Intangibles and other assets, net    84.0    55.5    69.5        209.0  





    Total Assets   $ 2,514.9   $ 2,628.2   $ 2,462.9   $ (3,176.0 ) $ 4,430.0  





LIABILITIES AND
    SHAREHOLDERS’ EQUITY
  
Current liabilities  
  Short-term debt and current portion  
    of long-term debt   $ 37.0   $ 3.3   $ 125.1   $   $ 165.4  
  Accounts payable    80.0    254.0    215.4        549.4  
  Accrued employee costs    11.4    108.6    27.7        147.7  
  Income taxes payable        482.1    72.8    (449.0 )  105.9  
  Other current liabilities    32.4    30.7    51.1        114.2  





    Total current liabilities    160.8    878.7    492.1    (449.0 )  1,082.6  
  Long-term debt    1,184.5    20.8    382.7        1,588.0  
  Intercompany borrowings    87.4    361.9    249.6    (698.9 )    
  Employee benefit obligations    145.7    185.4    387.7        718.8  
  Deferred taxes and other liabilities    (16.2 )  4.3    94.2        82.3  





    Total liabilities    1,562.2    1,451.1    1,606.3    (1,147.9 )  3,471.7  





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    618.2    726.0    681.0    (1,407.0 )  618.2  
  Retained earnings (deficit)    1,123.3    601.1    (73.0 )  (528.1 )  1,123.3  
  Accumulated other comprehensive  
    earnings (loss)    (54.3 )  (150.0 )  63.4    86.6    (54.3 )
  Treasury stock, at cost    (734.5 )              (734.5 )





    Common shareholders’ equity    952.7    1,177.1    671.4    (1,848.5 )  952.7  





       Total shareholders’ equity    952.7    1,177.1    851.0    (2,028.1 )  952.7  





    Total Liabilities and Shareholders’  
      Equity   $ 2,514.9   $ 2,628.2   $ 2,462.9   $ (3,176.0 ) $ 4,430.0  






CONSOLIDATED BALANCE SHEET
December 31, 2004
Ball
Corporation

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminating
Adjustments

Consolidated
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  






For the Three Months Ended July 3, 2005
Ball
Corporation

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminating
Adjustments

Consolidated
Total

Net sales     $   $ 1,157.9   $ 451.7   $ (57.6 ) $1,552.0  
Costs and expenses  
  Cost of sales (excluding depreciation
    and amortization)
        1,007.5    352.8    (57.6 )  1,302.7  
  Depreciation and amortization    0.8    32.5    19.7        53.0  
  Business consolidation costs            8.8        8.8  
  Selling, general and administrative    7.8    33.3    14.9        56.0  
  Interest expense    6.3    10.0    8.0        24.3  
  Equity in results of subsidiaries    (78.5 )          78.5      
  Corporate allocations    (16.6 )  14.8    1.8          





                       (80.2 )  1,098.1    406.0    20.9    1,444.8  





Earnings (loss) before taxes    80.2    59.8    45.7    (78.5 )  107.2  
Tax provision    (1.2 )  (19.8 )  (11.9 )      (32.9 )
Minority interests            (0.3 )      (0.3 )
Equity in results of affiliates        1.1    3.9        5.0  





Net earnings (loss)   $ 79.0   $ 41.1   $ 37.4   $ (78.5 ) $ 79.0  







CONSOLIDATED STATEMENT OF EARNINGS
For the Three Months Ended July 4, 2004
Ball
Corporation

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminating
Adjustments

Consolidated
Total

Net sales     $   $ 1,115.6   $ 413.9   $ (62.3 ) $1,467.2  
Costs and expenses  
  Cost of sales (excluding depreciation
    and amortization)
        942.7    313.1    (62.3 )  1,193.5  
  Depreciation and amortization    0.8    32.4    19.0        52.2  
  Selling, general and administrative    10.3    41.5    15.9        67.7  
  Interest expense    2.7    12.9    9.4        25.0  
  Equity in results of subsidiaries    (89.0 )          89.0      
  Corporate allocations    (16.0 )  14.2    1.8          





                       (91.2 )  1,043.7    359.2    26.7    1,338.4  





Earnings (loss) before taxes    91.2    71.9    54.7    (89.0 )  128.8  
Tax provision    (0.5 )  (26.9 )  (13.4 )      (40.8 )
Minority interests            (0.2 )      (0.2 )
Equity in results of affiliates        1.0    1.9        2.9  





Net earnings (loss)   $ 90.7   $ 46.0   $ 43.0   $ (89.0 ) $90.7  






For the Six Months Ended July 3, 2005
Ball
Corporation

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminating
Adjustments

Consolidated
Total

Net sales     $   $ 2,183.9   $ 804.3   $ (112.1 ) $ 2,876.1  
Costs and expenses  
  Cost of sales (excluding depreciation
    and amortization)
        1,881.1    630.5    (112.1 )  2,399.5  
  Depreciation and amortization    1.5    65.0    39.9        106.4  
  Business consolidation costs            8.8        8.8  
  Selling, general and administrative    11.8    72.6    34.6        119.0  
  Interest expense    12.3    20.3    17.5        50.1  
  Equity in results of subsidiaries    (134.1 )          134.1      
  Corporate allocations    (32.8 )  29.3    3.5          





                       (141.3 )  2,068.3    734.8    22.0    2,683.8  





Earnings (loss) before taxes    141.3    115.6    69.5    (134.1 )  192.3  
Tax provision    (3.7 )  (40.1 )  (18.9 )      (62.7 )
Minority interests            (0.5 )      (0.5 )
Equity in results of affiliates        1.4    7.1        8.5  





Net earnings (loss)   $ 137.6   $ 76.9   $ 57.2   $ (134.1 ) $ 137.6  







CONSOLIDATED STATEMENT OF EARNINGS
For the Six Months Ended July 4, 2004
Ball
Corporation

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminating
Adjustments

Consolidated
Total

Net sales     $   $ 2,063.3   $ 752.5   $ (117.1 ) $ 2,698.7  
Costs and expenses  
  Cost of sales (excluding depreciation
    and amortization)
        1,748.6    574.5    (117.1 )  2,206.0  
  Depreciation and amortization    1.3    65.6    39.1        106.0  
  Selling, general and administrative    20.5    75.9    42.4        138.8  
  Interest expense    6.1    26.1    21.1        53.3  
  Equity in results of subsidiaries    (135.3 )          135.3      
  Corporate allocations    (31.7 )  28.2    3.5          





                       (139.1 )  1,944.4    680.6    18.2    2,504.1  





Earnings (loss) before taxes    139.1    118.9    71.9    (135.3 )  194.6  
Tax provision    (1.6 )  (43.8 )  (16.9 )      (62.3 )
Minority interests            (0.5 )      (0.5 )
Equity in results of affiliates        1.7    4.0        5.7  





Net earnings (loss)   $ 137.5   $ 76.8   $ 58.5   $ (135.3 ) $ 137.5  






CONSOLIDATED STATEMENT OF CASH FLOWS
For the Six Months Ended July 3, 2005
Ball
Corporation

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminating
Adjustments

Consolidated
Total

Cash flows from operating activities                        
  Net earnings (loss)   $ 137.6   $ 76.9   $ 57.2   $ (134. 1) $ 137.6  
  Adjustments to reconcile net earnings  
    to net cash provided by operating  
    activities:  
    Depreciation and amortization    1.5    65.0    39.9        106.4  
    Business consolidation costs            8.8        8.8  
    Deferred taxes    (0.2 )  (11.1 )  (9.3 )      (20.6 )
    Equity in results of subsidiaries    (134.1 )          134.1      
    Other, net    7.6    (3.0 )  (2.2 )      2.4  
  Changes in other working capital  
    components    (10.7 )  (27.8 )  (125.9 )      (164.4 )





       Net cash provided by (used in)  
         operating activities    1.7    100.0    (31.5 )      70.2  





Cash flows from investing activities  
  Additions to property, plant and  
    equipment    (2.5 )  (78.8 )  (67.0 )      (148.3 )
  Investments in and advances to  
    affiliates, net of dividends    (72.1 )  (20.9 )  93.0          
  Other, net    (11.9 )  2.2    0.2        (9.5 )





       Net cash provided by (used in)  
         investing activities    (86.5 )  (97.5 )  26.2        (157.8 )





Cash flows from financing activities  
  Long-term borrowings    145.0    0.4            145.4  
  Repayments of long-term borrowings    (12.0 )  (2.6 )  (31.2 )      (45.8 )
  Change in short-term borrowings    35.0        23.4        58.4  
  Proceeds from issuance of common stock    20.1                20.1  
  Acquisitions of treasury stock    (188.1 )              (188.1 )
  Common dividends    (21.8 )              (21.8 )
  Other, net    (0.2 )              (0.2 )





       Net cash used in financing activities    (22.0 )  (2.2 )  (7.8 )      (32.0 )





Effect of exchange rate changes on cash            (3.4 )      (3.4 )
  Net change in cash and cash equivalents    (106.8 )  0.3    (16.5 )      (123.0 )
Cash and cash equivalents -  
  Beginning of period    113.8    0.6    84.3        198.7  





Cash and cash equivalents -  
  End of period   $ 7.0   $ 0.9   $ 67.8       $ 75.7  






CONSOLIDATED STATEMENT OF CASH FLOWS
For the Six Months Ended July 4, 2004
Ball
Corporation

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminating
Adjustments

Consolidated
Total

Cash flows from operating activities                        
  Net earnings (loss)   $ 137.5   $ 76.8   $ 58.5   $ (135.3 ) $ 137.5  
  Adjustments to reconcile net earnings  
    to net cash provided by operating  
    activities:  
    Depreciation and amortization    1.3    65.6    39.1        106.0  
    Deferred taxes    12.3    4.1    0.6        17.0  
    Equity in results of subsidiaries    (135.3 )          135.3      
    Other    19.2    (14.0 )  (2.0 )      3.2  
  Changes in working capital
    components, excluding effects of
    acquisitions
    (26.1 )  68.1    (205.2 )      (163.2 )





       Net cash provided by (used in)
         operating activities
    8.9    200.6    (109.0 )      100.5  





Cash flows from investing activities  
  Additions to property, plant and
    equipment
    (2.2 )  (41.7 )  (23.5 )      (67.4 )
  Business acquisition, net of cash
    acquired
        (17.0 )          (17.0 )
  Investments in and advances to
    affiliates, net of dividends
    (14.3 )  (145.2 )  159.5          
  Other    (10.1 )  3.9    (0.2 )      (6.4 )





       Net cash provided by (used in)
         investing activities
    (26.6 )  (200.0 )  135.8        (90.8 )





Cash flows from financing activities  
  Long-term borrowings    60.0        10.6        70.6  
  Repayments of long-term borrowings    (0.9 )  (0.6 )  (68.9 )      (70.4 )
  Change in short-term borrowings    18.5        30.2        48.7  
  Proceeds from issuance of common stock    16.8                16.8  
  Acquisitions of treasury stock    (58.9 )              (58.9 )
  Common dividends    (16.7 )              (16.7 )
  Other    (0.1 )      (0.4 )      (0.5 )





       Net cash provided by (used in)
         financing activities
    18.7    (0.6 )  (28.5 )      (10.4 )





Effect of exchange rate changes on cash            0.1        0.1  
  Net change in cash and cash
    equivalents
    1.0        (1.6 )      (0.6 )
Cash and cash equivalents–  
  Beginning of period    8.8    0.9    26.8        36.5  





Cash and cash equivalents–  
  End of period   $ 9.8   $ 0.9   $ 25.2   $   $ 35.9