EX-20 3 ex-20.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 unaudited condensed, consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of July 2, 2006, and December 31, 2005, and for the three and six-month periods ended July 2, 2006, and July 3, 2005.  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 

 
 
CONSOLIDATED BALANCE SHEET
  
 
July 2, 2006
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
ASSETS
                    
Current assets
                              
Cash and cash equivalents
$
6.4
 
$
1.8
  
$
44.3
 
$
–
  
$
52.5
 
Receivables, net
  
(0.6
)
  
257.4
    
513.9
    
–
    
770.7
  
Inventories, net
  
–
    
565.3
    
265.0
    
–
    
830.3
  
Deferred taxes, prepaids and other current assets
  
532.5
    
42.5
    
50.5
    
(486.5
)
  
139.0
  
Total current assets
  
538.3
    
867.0
    
873.7
    
(486.5
)
  
1,792.5
  
Property, plant and equipment, at cost
  
44.5
    
2,410.7
    
1,120.8
    
–
    
3,576.0
  
Accumulated depreciation
  
(17.7
)
  
(1,300.6
)
  
(426.3
)
  
–
    
(1,744.6
)
   
26.8
    
1,110.1
    
694.5
    
–
    
1,831.4
  
Investments in subsidiaries
  
2,226.9
    
486.3
    
88.4
    
(2,801.6
)
  
–
  
Investments in affiliates
  
1.4
    
20.9
    
46.7
    
–
    
69.0
  
Goodwill
  
–
    
722.0
    
988.0
    
–
    
1,710.0
  
Intangibles and other assets, net
  
110.9
    
178.3
    
160.7
    
–
    
449.9
  
Total Assets
$
2,904.3
  
$
3,384.6
  
$
2,852.0
  
$
(3,288.1
)
$
5,852.8
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                              
Current liabilities
                              
Short-term debt and current portion of long-term debt
$
10.0
  
$
11.4
  
$
112.5
  
$
–
  
$
133.9
  
Accounts payable
  
74.7
    
348.9
    
268.0
    
–
    
691.6
  
Accrued employee costs
  
13.3
    
137.7
    
26.2
    
–
    
177.2
  
Income taxes payable
  
–
    
502.6
    
111.0
    
(486.6
)
  
127.0
  
Other current liabilities
  
26.1
    
122.1
    
62.6
    
–
    
210.8
  
Total current liabilities
  
124.1
    
1,122.7
    
580.3
    
(486.6
)
  
1,340.5
  
                               
Long-term debt
  
1,656.3
    
15.1
    
841.6
    
–
    
2,513.0
  
Intercompany borrowings
  
(206.5
)
  
695.1
    
210.3
    
(698.9
)
  
–
  
Employee benefit obligations
  
160.1
    
261.4
    
425.2
    
–
    
846.7
  
Deferred taxes and other liabilities
  
120.0
    
(99.4
)
  
76.9
    
–
    
97.5
  
Total liabilities
  
1,854.0
    
1,994.9
    
2,134.3
    
(1,185.5
)
  
4,797.7
  
                               
Contingencies
                              
Minority interests
  
–
    
–
    
4.8
    
–
    
4.8
  
                               
Shareholders’ equity:
                              
Convertible preferred stock
  
–
    
–
    
179.6
    
(179.6
)
  
–
  
Preferred shareholders’ equity
  
–
    
–
    
179.6
    
(179.6
)
  
–
  
                               
Common stock
  
685.2
    
838.2
    
495.5
    
(1,333.7
)
  
685.2
  
Retained earnings (deficit)
  
1,384.6
    
737.8
    
(14.6
)
  
(723.2
)
  
1,384.6
  
Accumulated other comprehensive earnings (loss)
  
(58.0
)
  
(186.3
)
  
52.4
    
133.9
    
(58.0
)
Treasury stock, at cost
  
(961.5
)
  
–
    
–
    
–
    
(961.5
)
Common shareholders’ equity
  
1,050.3
    
1,389.7
    
533.3
    
(1,923.0
)
  
1,050.3
  
Total shareholders’ equity
  
1,050.3
    
1,389.7
    
712.9
    
(2,102.6
)
  
1,050.3
  
Total Liabilities and Shareholders’ Equity
$
2,904.3
  
$
3,384.6
  
$
2,852.0
  
$
(3,288.1
)
$
5,852.8
  


Page 2 of 7 


 
CONSOLIDATED BALANCE SHEET
  
 
December 31, 2005
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
ASSETS
                              
Current assets
                              
Cash and cash equivalents
$
8.0
  
$
1.7
  
$
51.3
  
$
–
  
$
61.0
  
Receivables, net
  
0.8
    
166.0
    
209.8
    
–
    
376.6
  
Inventories, net
  
–
    
439.4
    
230.9
    
–
    
670.3
  
Deferred taxes and prepaid expenses
  
340.0
    
193.0
    
55.6
    
(470.7
)
  
117.9
  
Total current assets
  
348.8
    
800.1
    
547.6
    
(470.7
)
  
1,225.8
  
                               
Property, plant and equipment, at cost
  
45.7
    
2,081.9
    
1,025.8
    
–
    
3,153.4
  
Accumulated depreciation
  
(17.0
)
  
(1,237.0
)
  
(342.8
)
  
–
    
(1,596.8
)
   
28.7
    
844.9
    
683.0
    
–
    
1,556.6
  
                               
Investment in subsidiaries
  
1,988.6
    
453.8
    
88.4
    
(2,530.8
)
  
–
  
Investment in affiliates
  
1.4
    
17.0
    
47.0
    
–
    
65.4
  
Goodwill, net
  
–
    
340.8
    
917.8
    
–
    
1,258.6
  
Intangibles and other assets
  
118.3
    
62.3
    
56.4
    
–
    
237.0
  
 
$
2,485.8
  
$
2,518.9
  
$
2,340.2
  
$
(3,001.5
)
$
4,343.4
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                              
Current liabilities
                              
Short-term debt and current portion of long-term debt
$
29.1
  
$
3.3
  
$
84.0
  
$
–
  
$
116.4
  
Accounts payable
  
59.5
    
305.3
    
187.6
    
–
    
552.4
  
Accrued employee costs
  
15.8
    
154.7
    
27.9
    
–
    
198.4
  
Income taxes payable
  
–
    
507.1
    
91.1
    
(470.7
)
  
127.5
  
Other current liabilities
  
18.9
    
111.4
    
51.0
    
–
    
181.3
  
Total current liabilities
  
123.3
    
1,081.8
    
441.6
    
(470.7
)
  
1,176.0
  
                               
Long-term debt
  
600.2
    
20.8
    
852.3
    
–
    
1,473.3
  
Intercompany borrowings
  
792.9
    
(110.0
)
  
16.0
    
(698.9
)
  
–
  
Employee benefit obligations
  
164.7
    
218.6
    
400.9
    
–
    
784.2
  
Deferred taxes and other liabilities
  
(30.6
)
  
45.1
    
55.0
    
–
    
69.5
  
Total liabilities
  
1,650.5
    
1,256.3
    
1,765.8
    
(1,169.6
)
  
3,503.0
  
                               
Minority interests
  
–
    
–
    
5.1
    
–
    
5.1
  
Shareholders’ equity
                              
Convertible preferred stock
  
–
    
–
    
179.6
    
(179.6
)
  
–
  
Preferred shareholders’ equity
  
–
    
–
    
179.6
    
(179.6
)
  
–
  
                               
Common stock
  
633.6
    
804.5
    
487.0
    
(1,291.5
)
  
633.6
  
Retained earnings
  
1,227.9
    
649.8
    
(119.1
)
  
(530.7
)
  
1,227.9
  
Accumulated other comprehensive earnings (loss)
  
(100.7
)
  
(191.7
)
  
21.8
    
169.9
    
(100.7
)
Treasury stock, at cost
  
(925.5
)
  
–
    
–
    
–
    
(925.5
)
Common shareholders’ equity
  
835.3
    
1,262.6
    
389.7
    
(1,652.3
)
  
835.3
  
Total shareholders’ equity
  
835.3
    
1,262.6
    
569.3
    
(1,831.9
)
  
835.3
  
 
$
2,485.8
  
$
2,518.9
  
$
2,340.2
  
$
(3,001.5
)
$
4,343.4
  


Page 3 of 7 

 
CONSOLIDATED STATEMENT OF EARNINGS
  
 
For the Three Months Ended July 2, 2006
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
$
–
  
$
1,392.2
  
$
506.1
  
$
(55.8
)
$
1,842.5
  
Costs and expenses
                              
Cost of sales (excluding depreciation and amortization)
  
–
    
1,213.5
    
392.3
    
(55.8
)
  
1,550.0
  
Depreciation and amortization
  
0.8
    
42.7
    
21.4
    
–
    
64.9
  
Business consolidation costs
  
–
    
–
    
(0.4
)
  
–
    
(0.4
)
Property insurance gain
  
–
    
–
    
(74.1
)
  
–
    
(74.1
)
Selling, general and administrative
  
22.7
    
33.4
    
17.4
    
–
    
73.5
  
Interest expense
  
7.4
    
17.8
    
12.4
    
–
    
37.6
  
Equity in results of subsidiaries
  
(142.4
)
  
–
    
–
    
142.4
    
–
  
Corporate allocations
  
(17.5
)
  
15.3
    
2.2
    
–
    
–
  
   
(129.0
)
  
1,322.7
    
371.2
    
86.6
    
1,651.5
  
Earnings (loss) before taxes
  
129.0
    
69.5
    
134.9
    
(142.4
)
  
191.0
  
Tax provision
  
3.7
    
(21.7
)
  
(45.0
)
  
–
    
(63.0
)
Minority interests
  
–
    
–
    
(0.2
)
  
–
    
(0.2
)
Equity in results of affiliates
  
–
    
1.7
    
3.2
    
–
    
4.9
  
Net earnings (loss)
$
132.7
  
$
49.5
  
$
92.9
  
$
(142.4
)
$
132.7
  



 
CONSOLIDATED STATEMENT OF EARNINGS
  
 
For the Three Months Ended July 3, 2005
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
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
    
350.3
    
(57.6
)
  
1,300.2
  
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
    
17.4
    
–
    
58.5
  
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
  



Page 4 of 7 


 
CONSOLIDATED STATEMENT OF EARNINGS
  
 
For the Six Months Ended July 2, 2006
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
$
–
  
$
2,455.6
  
$
845.4
  
$
(93.6
)
$
3,207.4
  
Costs and expenses
                              
Cost of sales (excluding depreciation and amortization)
  
–
    
2,139.1
    
660.8
    
(93.6
)
  
2,706.3
  
Depreciation and amortization
  
1.6
    
75.9
    
42.0
    
–
    
119.5
  
Business consolidation costs
  
–
    
–
    
1.7
    
–
    
1.7
  
Property insurance gain
  
–
    
–
    
(74.1
)
  
–
    
(74.1
)
Selling, general and administrative
  
42.1
    
61.4
    
40.3
    
–
    
143.8
  
Interest expense
  
15.2
    
22.1
    
23.6
    
–
    
60.9
  
Equity in results of subsidiaries
  
(192.5
)
  
–
    
–
    
192.5
    
–
  
Corporate allocations
  
(35.5
)
  
30.0
    
5.5
    
–
    
–
  
   
(169.1
)
  
2,328.5
    
699.8
    
98.9
    
2,958.1
  
Earnings (loss) before taxes
  
169.1
    
127.1
    
145.6
    
(192.5
)
  
249.3
  
Tax provision
  
8.2
    
(41.1
)
  
(46.8
)
  
–
    
(79.7
)
Minority interests
  
–
    
–
    
(0.4
)
  
–
    
(0.4
)
Equity in results of affiliates
  
–
    
2.4
    
5.7
    
–
    
8.1
  
Net earnings (loss)
$
177.3
  
$
88.4
  
$
104.1
  
$
(192.5
)
$
177.3
  



 
CONSOLIDATED STATEMENT OF EARNINGS
  
 
For the Six Months Ended July 3, 2005
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
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
    
627.9
    
(112.1
)
  
2,396.9
  
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
    
37.2
    
–
    
121.6
  
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
  



Page 5 of 7 

 
 
CONSOLIDATED STATEMENT OF CASH FLOWS
  
 
For the Six Months Ended July 2, 2006
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Cash flows from operating activities
                              
Net earnings (loss)
$
177.3
  
$
88.4
  
$
104.1
  
$
(192.5
)
$
177.3
  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                             
Depreciation and amortization
  
1.6
    
75.9
    
42.0
    
–
    
119.5
  
Property insurance gain
  
–
    
–
    
(74.1
)
  
–
    
(74.1
)
Business consolidation costs
  
–
    
–
    
1.7
    
–
    
1.7
  
Deferred taxes
  
(1.8
)
  
1.5
    
14.6
    
–
    
14.3
  
Equity in results of subsidiaries
  
(192.5
)
  
–
    
–
    
192.5
    
–
  
Other, net
  
10.4
    
(20.3
)
  
(19.4
)
  
–
    
(29.3
)
Changes in working capital components, excluding effects of acquisitions
  
(14.1
)
  
(64.4
)
  
(197.1
)
  
–
    
(275.6
)
Net cash provided by (used in) operating activities
  
(19.1
)
  
81.1
    
(128.2
)
  
–
    
(66.2
)
                               
Cash flows from investing activities
                              
Additions to property, plant and equipment
  
(0.8
)
  
(104.2
)
  
(22.5
)
  
–
    
(127.5
)
Business acquisitions, net of cash acquired
  
–
    
(718.0
)
  
(67.4
)
  
–
    
(785.4
)
Property insurance proceeds
  
–
    
–
    
32.4
    
–
    
32.4
  
Investments in and advances to affiliates, net of dividends
  
(958.9
)
  
745.3
    
213.6
    
–
    
–
  
Other, net
  
(4.6
)
  
6.1
    
7.1
    
–
    
8.6
  
Net cash provided by (used in) investing activities
  
(964.3
)
  
(70.8
)
  
163.2
    
–
    
(871.9
)
                               
Cash flows from financing activities
                              
Long-term borrowings
  
1,049.1
    
–
    
–
    
–
    
1,049.1
  
Repayments of long-term borrowings
  
–
    
(2.3
)
  
(64.5
)
  
–
    
(66.8
)
Change in short-term borrowings
  
(19.0
)
  
–
    
21.7
    
–
    
2.7
  
Proceeds from issuance of common stock
  
19.2
    
–
    
–
    
–
    
19.2
  
Acquisitions of treasury stock
  
(50.7
)
  
–
    
–
    
–
    
(50.7
)
Common dividends
  
(20.7
)
  
–
    
–
    
–
    
(20.7
)
Other, net
  
3.9
    
(7.9
)
  
–
    
–
    
(4.0
)
Net cash provided by (used in) financing activities
  
981.8
    
(10.2
)
  
(42.8
)
  
–
    
928.8
  
                               
Effect of exchange rate changes on cash
  
–
    
–
    
0.8
    
–
    
0.8
  
                               
Net change in cash and cash equivalents
  
(1.6
)
  
0.1
    
(7.0
)
  
–
    
(8.5
)
Cash and cash equivalents — Beginning of period
  
8.0
    
1.7
    
51.3
    
–
    
61.0
  
Cash and cash equivalents — End of period
$
6.4
  
$
1.8
  
$
44.3
  
$
–
  
$
52.5
  


Page 6 of 7 

 
 
CONSOLIDATED STATEMENT OF CASH FLOWS
  
 
For the Six Months Ended July 3, 2005
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
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
  

 

Page 7 of 7