EX-20 2 ex20.htm SUBSIDIARY GUARANTEES OF DEBT Subsidiary Guarantees of Debt
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 October 2, 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 7
Exhibit 20 (continued)
 
   
CONSOLIDATED BALANCE SHEET
  
   
October 2, 2005
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
ASSETS
                                
Current assets
                                
Cash and cash equivalents
  
$
11.0
  
$
1.2
  
$
78.2
  
$
-
  
$
90.4
  
Receivables, net
    
-
    
150.1
    
411.4
    
-
    
561.5
  
Inventories, net
    
-
    
377.0
    
201.2
    
-
    
578.2
  
Deferred taxes, prepaids and other current assets
    
365.8
    
156.6
    
17.3
    
(443.7
)
  
96.0
  
  Total current assets
    
376.8
    
684.9
    
708.1
    
(443.7
)
  
1,326.1
  
                                 
Property, plant and equipment, at cost
    
43.4
    
2,021.4
    
1,003.1
    
-
    
3,067.9
  
Accumulated depreciation
    
(16.3
)
  
(1,217.9
)
  
(326.4
)
  
-
    
(1,560.6
)
     
27.1
    
803.5
    
676.7
    
-
    
1,507.3
  
Investments in subsidiaries
    
2,062.4
    
616.9
    
9.8
    
(2,689.1
)
  
-
  
Investments in affiliates
    
2.9
    
19.6
    
43.9
    
-
    
66.4
  
Goodwill
    
-
    
340.8
    
931.9
    
-
    
1,272.7
  
Intangibles and other assets, net
    
80.4
    
55.7
    
67.8
    
-
    
203.9
  
  Total Assets
  
$
2,549.6
  
$
2,521.4
  
$
2,438.2
  
$
(3,132.8
)
$
4,376.4
  
                                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                
Current liabilities
                                
Short-term debt and current portion of long-term debt
  
$
54.0
  
$
3.3
  
$
138.9
  
$
-
  
$
196.2
  
Accounts payable
    
44.4
    
259.3
    
205.0
    
-
    
508.7
  
Accrued employee costs
    
19.0
    
125.9
    
30.7
    
-
    
175.6
  
Income taxes payable
    
-
    
486.5
    
101.9
    
(443.7
)
  
144.7
  
Other current liabilities
    
47.8
    
50.8
    
39.9
    
-
    
138.5
  
  Total current liabilities
    
165.2
    
925.8
    
516.4
    
(443.7
)
  
1,163.7
  
                                 
Long-term debt
    
1,165.1
    
20.8
    
369.7
    
-
    
1,555.6
  
Intercompany borrowings
    
217.5
    
176.9
    
304.5
    
(698.9
)
  
-
  
Employee benefit obligations
    
152.0
    
184.8
    
387.0
    
-
    
723.8
  
Deferred taxes and other liabilities
    
(25.4
)
  
5.7
    
72.8
    
-
    
53.1
  
  Total liabilities
    
1,674.4
    
1,314.0
    
1,650.4
    
(1,142.6
)
  
3,496.2
  
                                 
Contingencies
                                
Minority interests
    
-
    
-
    
5.0
    
-
    
5.0
  
                                 
Shareholders’ equity:
                                
Convertible preferred stock
    
-
    
-
    
179.6
    
(179.6
)
  
-
  
Preferred shareholders’ equity
    
-
    
-
    
179.6
    
(179.6
)
  
-
  
                                 
Common stock
    
623.5
    
726.0
    
609.8
    
(1,335.8
)
  
623.5
  
Retained earnings (deficit)
    
1,192.1
    
631.6
    
(76.7
)
  
(554.9
)
  
1,192.1
  
Accumulated other comprehensive earnings (loss)
    
(47.5
)
  
(150.2
)
  
70.1
    
80.1
    
(47.5
)
Treasury stock, at cost
    
(892.9
)
  
-
    
-
    
-
    
(892.9
)
Common shareholders’ equity
    
875.2
    
1,207.4
    
603.2
    
(1810.6
)
  
875.2
  
Total shareholders’ equity
    
875.2
    
1,207.4
    
782.8
    
(1,990.2
)
  
875.2
  
Total Liabilities and Shareholders’ Equity
  
$
2,549.6
  
$
2,521.4
  
$
2,438.2
  
$
(3,132.8
)
$
4,376.4
  

Page 2 of 7
Exhibit 20 (continued)

   
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 7
Exhibit 20 (continued)


   
CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Three Months Ended October 2, 2005
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
  
$
1,217.6
  
$
453.8
  
$
(87.5
)
$
1,583.9
  
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
1,062.2
    
354.4
    
(87.5
)
  
1,329.1
  
Depreciation and amortization
    
0.8
    
32.5
    
21.1
    
-
    
54.4
  
Business consolidation costs
    
-
    
19.3
    
-
    
-
    
19.3
  
Selling, general and administrative
    
(4.1
)
  
39.9
    
16.8
    
-
    
52.6
  
Interest expense
    
8.5
    
9.1
    
8.1
    
-
    
25.7
  
Equity in results of subsidiaries
    
(68.9
)
  
-
    
-
    
68.9
    
-
  
Corporate allocations
    
(18.7
)
  
16.9
    
1.8
    
-
    
-
  
     
(82.4
)
  
1,179.9
    
402.2
    
(18.6
)
  
1,481.1
  
Earnings (loss) before taxes
    
82.4
    
37.7
    
51.6
    
(68.9
)
  
102.8
  
Tax provision
    
(3.1
)
  
(8.4
)
  
(15.1
)
  
-
    
(26.6
)
Minority interests, net
    
-
    
-
    
(0.2
)
  
-
    
(0.2
)
Equity earnings, net
    
-
    
1.2
    
2.1
    
-
    
3.3
  
Net earnings (loss)
  
$
79.3
  
$
30.5
  
$
38.4
  
$
(68.9
)
$
79.3
  



   
CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Three Months Ended October 3, 2004
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
  
$
1,144.4
  
$
419.2
  
$
(84.9
)
$
1,478.7
  
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
966.4
    
314.9
    
(84.9
)
  
1,196.4
  
Depreciation and amortization
    
0.5
    
33.2
    
23.0
    
-
    
56.7
  
Business consolidation gains
    
-
    
(0.7
)
  
(6.0
)
  
-
    
(6.7
)
Selling, general and administrative
    
10.2
    
39.0
    
13.8
    
-
    
63.0
  
Interest expense
    
0.8
    
14.7
    
10.2
    
-
    
25.7
  
Equity in results of subsidiaries
    
(101.1
)
  
-
    
-
    
101.1
    
-
  
Corporate allocations
    
(17.9
)
  
16.1
    
1.8
    
-
    
-
  
     
(107.5
)
  
1,068.7
    
357.7
    
16.2
    
1,335.1
  
Earnings (loss) before taxes
    
107.5
    
75.7
    
61.5
    
(101.1
)
  
143.6
  
Tax provision
    
(5.8
)
  
(27.6
)
  
(12.9
)
  
-
    
(46.3
)
Minority interests, net
    
-
    
-
    
(0.3
)
  
-
    
(0.3
)
Equity earnings, net
    
-
    
1.4
    
3.3
    
-
    
4.7
  
Net earnings (loss)
  
$
101.7
  
$
49.5
  
$
51.6
  
$
(101.1
)
$
101.7
  


Page 4 of 7
Exhibit 20 (continued)


   
CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Nine Months Ended October 2, 2005
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
  
$
3,401.5
  
$
1,258.1
  
$
(199.6
)
$
4,460.0
  
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
2,943.3
    
984.9
    
(199.6
)
  
3,728.6
  
Depreciation and amortization
    
2.3
    
97.5
    
61.0
    
-
    
160.8
  
Business consolidation costs
    
-
    
19.3
    
8.8
    
-
    
28.1
  
Selling, general and administrative
    
7.7
    
112.5
    
51.4
    
-
    
171.6
  
Interest expense
    
20.8
    
29.4
    
25.6
    
-
    
75.8
  
Equity in results of subsidiaries
    
(203.0
)
  
-
    
-
    
203.0
    
-
  
Corporate allocations
    
(51.5
)
  
46.2
    
5.3
    
-
    
-
  
     
(223.7
)
  
3,248.2
    
1,137.0
    
3.4
    
4,164.9
  
Earnings (loss) before taxes
    
223.7
    
153.3
    
121.1
    
(203.0
)
  
295.1
  
Tax provision
    
(6.8
)
  
(48.5
)
  
(34.0
)
  
-
    
(89.3
)
Minority interests, net
    
-
    
-
    
(0.7
)
  
-
    
(0.7
)
Equity earnings, net
    
-
    
2.6
    
9.2
    
-
    
11.8
  
Net earnings (loss)
  
$
216.9
  
$
107.4
  
$
95.6
  
$
(203.0
)
$
216.9
  



   
CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Nine Months Ended October 3, 2004
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
  
$
3,207.7
  
$
1,171.7
  
$
(202.0
)
$
4,177.4
  
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
2,715.0
    
889.4
    
(202.0
)
  
3,402.4
  
Depreciation and amortization
    
1.8
    
98.8
    
62.1
    
-
    
162.7
  
Business consolidation gains
    
-
    
(0.7
)
  
(6.0
)
  
-
    
(6.7
)
Selling, general and administrative
    
30.7
    
114.9
    
56.2
    
-
    
201.8
  
Interest expense
    
6.9
    
40.8
    
31.3
    
-
    
79.0
  
Equity in results of subsidiaries
    
(236.4
)
  
-
    
-
    
236.4
    
-
  
Corporate allocations
    
(49.6
)
  
44.3
    
5.3
    
-
    
-
  
     
(246.6
)
  
3,013.1
    
1,038.3
    
34.4
    
3,839.2
  
Earnings (loss) before taxes
    
246.6
    
194.6
    
133.4
    
(236.4
)
  
338.2
  
Tax provision
    
(7.4
)
  
(71.4
)
  
(29.8
)
  
-
    
(108.6
)
Minority interests, net
    
-
    
-
    
(0.8
)
  
-
    
(0.8
)
Equity earnings, net
    
-
    
3.1
    
7.3
    
-
    
10.4
  
Net earnings (loss)
  
$
239.2
  
$
126.3
  
$
110.1
  
$
(236.4
)
$
239.2
  


Page 5 of 7
Exhibit 20 (continued)

   
CONSOLIDATED STATEMENT OF CASH FLOWS
  
   
For the Nine Months Ended October 2, 2005
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Cash flows from operating activities
                                
Net earnings (loss)
  
$
216.9
  
$
107.4
  
$
95.6
  
$
(203.0
)
$
216.9
  
Adjustments to reconcile net earnings to net cash provided by
     operating activities:
                               
Depreciation and amortization
    
2.3
    
97.5
    
61.0
    
-
    
160.8
  
Business consolidation costs
    
-
    
19.3
    
8.8
    
-
    
28.1
  
Deferred taxes
    
(7.5
)
  
(21.7
)
  
(29.9
)
  
-
    
(59.1
)
Equity in results of subsidiaries
    
(203.0
)
  
-
    
-
    
203.0
    
-
  
Other, net
    
11.1
    
(4.9
)
  
(3.2
)
  
-
    
3.0
  
Changes in other working capital components
    
(39.6
)
  
53.6
    
(78.9
)
  
-
    
(64.9
)
Net cash provided by (used in) operating activities
    
(19.8
)
  
251.2
    
53.4
    
-
    
284.8
  
                                 
Cash flows from investing activities
                                
Additions to property, plant and equipment
    
(4.2
)
  
(109.2
)
  
(80.8
)
  
-
    
(194.2
)
Investments in and advances to affiliates, net of dividends
    
108.6
    
(141.2
)
  
32.6
    
-
    
-
  
Other, net
    
(11.1
)
  
2.4
    
(0.5
)
  
-
    
(9.2
)
Net cash provided by (used in) investing activities
    
93.3
    
(248.0
)
  
(48.7
)
  
-
    
(203.4
)
                                 
Cash flows from financing activities
                                
Long-term borrowings
    
155.0
    
0.4
    
-
    
-
    
155.4
  
Repayments of long-term borrowings
    
(40.6
)
  
(3.0
)
  
(46.1
)
  
-
    
(89.7
)
Change in short-term borrowings
    
52.0
    
-
    
37.2
    
-
    
89.2
  
Proceeds from issuance of common stock
    
28.2
    
-
    
-
    
-
    
28.2
  
Acquisitions of treasury stock
    
(338.6
)
  
-
    
-
    
-
    
(338.6
)
Common dividends
    
(32.3
)
  
-
    
-
    
-
    
(32.3
)
Net cash used in financing activities
    
(176.3
)
  
(2.6
)
  
(8.9
)
  
-
    
(187.8
)
                                 
Effect of exchange rate changes on cash
    
-
    
-
    
(1.9
)
  
-
    
(1.9
)
                                 
Net change in cash and cash equivalents
    
(102.8
)
  
0.6
    
(6.1
)
  
-
    
(108.3
)
Cash and cash equivalents - Beginning of period
    
113.8
    
0.6
    
84.3
    
-
    
198.7
  
Cash and cash equivalents - End of period
  
$
11.0
  
$
1.2
  
$
78.2
  
$
-
  
$
90.4
  
 

Page 6 of 7
Exhibit 20 (continued)


   
CONSOLIDATED STATEMENT OF CASH FLOWS
  
   
For the Nine Months Ended October 3, 2004
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Cash flows from operating activities
                                
Net earnings (loss)
  
$
239.2
  
$
126.3
  
$
110.1
  
$
(236.4
)
$
239.2
  
Adjustments to reconcile net earnings to net cash provided by
     operating  activities:
                               
Depreciation and amortization
    
1.8
    
98.8
    
62.1
    
-
    
162.7
  
Business consolidation gains
    
-
    
(0.7
)
  
(6.0
)
  
-
    
(6.7
)
Deferred taxes
    
15.8
    
14.7
    
(0.6
)
  
-
    
29.9
  
Equity in results of subsidiaries
    
(236.4
)
  
-
    
-
    
236.4
    
-
  
Other
    
9.6
    
(25.4
)
  
(7.8
)
  
-
    
(23.6
)
Changes in working capital components, excluding effects of acquisitions
    
(65.9
)
  
161.3
    
(205.1
)
  
-
    
(109.7
)
Net cash provided by (used in) operating activities
    
(35.9
)
  
375.0
    
(47.3
)
  
-
    
291.8
  
                                 
Cash flows from investing activities
                                
Additions to property, plant and equipment
    
(3.7
)
  
(60.9
)
  
(35.3
)
  
-
    
(99.9
)
Business acquisition, net of cash acquired
    
-
    
(17.0
)
  
-
    
-
    
(17.0
)
Investments in and advances to affiliates, net of dividends
    
143.7
    
(299.8
)
  
156.1
    
-
    
-
  
Other
    
(9.7
)
  
3.7
    
5.0
    
-
    
(1.0
)
Net cash provided by (used in) investing activities
    
130.3
    
(374.0
)
  
125.8
    
-
    
(117.9
)
                                 
Cash flows from financing activities
                                
Long-term borrowings
    
-
    
-
    
(0.2
)
  
-
    
(0.2
)
Repayments of long-term borrowings
    
(1.4
)
  
(1.0
)
  
(83.9
)
  
-
    
(86.3
)
Change in short-term borrowings
    
-
    
-
    
15.1
    
-
    
15.1
  
Proceeds from issuance of common stock
    
24.3
    
-
    
-
    
-
    
24.3
  
Acquisitions of treasury stock
    
(67.8
)
  
-
    
-
    
-
    
(67.8
)
Common dividends
    
(27.8
)
  
-
    
-
    
-
    
(27.8
)
Other
    
-
    
-
    
(0.4
)
  
-
    
(0.4
)
Net cash used in financing activities
    
(72.7
)
  
(1.0
)
  
(69.4
)
  
-
    
(143.1
)
                                 
Effect of exchange rate changes on cash
    
-
    
-
    
0.5
    
-
    
0.5
  
                                 
Net change in cash and cash equivalents
    
21.7
    
-
    
9.6
    
-
    
31.3
  
Cash and cash equivalents −Beginning of period
    
8.8
    
0.9
    
26.8
    
-
    
36.5
  
Cash and cash equivalents −End of period
  
$
30.5
  
$
0.9
  
$
36.4
  
$ 
-
  
$
67.8
  

 

Page 7 of 7