EXHIBIT 20.1
Subsidiary Guarantees of Debt
The Company's Senior Notes, Senior Subordinated Notes and Senior Credit Facility
agreements 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 2, 2000, and
December 31, 1999, and for the three-month periods ended April 2, 2000, and
April 4, 1999 (in millions of dollars). Certain prior-year amounts have been
reclassified in order to conform with 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
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April 2, 2000
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($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
----------------- ----------------- ----------------- ----------------- -----------------
ASSETS
Current assets
Cash and temporary investments $ 14.8 $ 0.1 $ 27.6 $ - $ 42.5
Accounts receivable, net 1.2 211.0 66.1 - 278.3
Inventories, net - 509.6 130.3 - 639.9
Deferred income tax benefits and
prepaid expenses 134.7 102.0 11.6 (171.2) 77.1
----------------- ----------------- ----------------- ----------------- -----------------
Total current assets 150.7 822.7 235.6 (171.2) 1,037.8
----------------- ----------------- ----------------- ----------------- -----------------
Property, plant and equipment, at cost 25.3 1,529.2 384.7 - 1,939.2
Accumulated depreciation (13.9) (723.6) (108.4) - (845.9)
----------------- ----------------- ----------------- ----------------- -----------------
11.4 805.6 276.3 - 1,093.3
----------------- ----------------- ----------------- ----------------- -----------------
Investment in subsidiaries 1,435.1 339.6 9.8 (1,784.5) -
Investment in affiliates 9.0 2.2 67.4 - 78.6
Goodwill, net - 347.8 116.5 - 464.3
Other assets 89.1 38.2 24.8 - 152.1
----------------- ----------------- ----------------- ----------------- -----------------
Total Assets $ 1,695.3 $ 2,356.1 $ 730.4 $ (1,955.7) $ 2,826.1
================= ================= ================= ================= =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 75.5 $ - $ 75.4 $ - $ 150.9
Accounts payable 15.6 250.0 70.4 - 336.0
Salaries and wages 9.4 62.7 6.5 - 78.6
Other current liabilities 26.9 202.7 37.2 (171.2) 95.6
----------------- ----------------- ----------------- ----------------- -----------------
Total current liabilities 127.4 515.4 189.5 (171.2) 661.1
Long-term debt 1,166.2 10.1 - - 1,176.3
Intercompany borrowings (410.5) 317.5 93.0 - -
Employee benefit obligations,
deferred income taxes and other 108.7 101.0 56.4 - 266.1
----------------- ----------------- ----------------- ----------------- -----------------
Total liabilities 991.8 944.0 338.9 (171.2) 2,103.5
----------------- ----------------- ----------------- ----------------- -----------------
Contingencies
Minority interests - - 19.1 - 19.1
----------------- ----------------- ----------------- ----------------- -----------------
Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock 55.3 - - - 55.3
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (20.5) - - - (20.5)
----------------- ----------------- ----------------- ----------------- -----------------
Preferred shareholders' equity 34.8 - 179.6 (179.6) 34.8
----------------- ----------------- ----------------- ----------------- -----------------
Common stock 428.5 1,155.7 240.3 (1,396.0) 428.5
Retained earnings (deficit) 496.1 257.8 (24.0) (233.8) 496.1
Accumulated other comprehensive loss (28.0) (1.4) (23.5) 24.9 (28.0)
Treasury stock, at cost (227.9) - - - (227.9)
----------------- ----------------- ----------------- ----------------- -----------------
Common shareholders' equity 668.7 1,412.1 192.8 (1,604.9) 668.7
----------------- ----------------- ----------------- ----------------- -----------------
Total shareholders' equity 703.5 1,412.1 372.4 (1,784.5) 703.5
----------------- ----------------- ----------------- ----------------- -----------------
Total Liabilities and
Shareholders' Equity $ 1,695.3 $ 2,356.1 $ 730.4 $ (1,955.7) $ 2,826.1
================= ================= ================= ================= =================
CONSOLIDATED BALANCE SHEET
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December 31, 1999
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($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
----------------- ----------------- ----------------- ----------------- -----------------
ASSETS
Current assets
Cash and temporary investments $ 13.6 $ 0.2 $ 22.0 $ - $ 35.8
Accounts receivable, net 4.1 151.7 64.4 - 220.2
Inventories, net - 452.1 113.8 - 565.9
Deferred income tax benefits and
prepaid expenses 129.2 94.8 13.0 (163.1) 73.9
----------------- ----------------- ----------------- ----------------- -----------------
Total current assets 146.9 698.8 213.2 (163.1) 895.8
----------------- ----------------- ----------------- ----------------- -----------------
Property, plant and equipment, at cost 25.4 1,525.5 383.7 - 1,934.6
Accumulated depreciation (13.5) (697.5) (102.4) - (813.4)
----------------- ----------------- ----------------- ----------------- -----------------
11.9 828.0 281.3 - 1,121.2
----------------- ----------------- ----------------- ----------------- -----------------
Investment in subsidiaries 1,412.4 337.7 10.3 (1,760.4) -
Investment in affiliates 9.0 2.3 70.0 - 81.3
Goodwill, net - 365.2 117.7 - 482.9
Other assets 88.9 37.5 24.5 - 150.9
----------------- ----------------- ----------------- ----------------- -----------------
Total Assets $ 1,669.1 $ 2,269.5 $ 717.0 $ (1,923.5) $ 2,732.1
================= ================= ================= ================= =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 46.8 $ - $ 57.2 $ - $ 104.0
Accounts payable 4.5 285.3 55.7 - 345.5
Salaries and wages 7.3 99.1 8.3 - 114.7
Other current liabilities 35.0 193.3 40.7 (163.1) 105.9
----------------- ----------------- ----------------- ----------------- -----------------
Total current liabilities 93.6 577.7 161.9 (163.1) 670.1
Long-term debt 1,068.7 24.0 - - 1,092.7
Intercompany borrowings (302.6) 199.1 103.5 - -
Employee benefit obligations,
deferred income taxes and other 118.5 83.1 57.1 - 258.7
----------------- ----------------- ----------------- ----------------- -----------------
Total liabilities 978.2 883.9 322.5 - 2,021.5
----------------- ----------------- ----------------- ----------------- -----------------
Contingencies
Minority interests - - 19.7 - 19.7
----------------- ----------------- ----------------- ----------------- -----------------
Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock 56.2 - - - 56.2
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (20.5) - - - (20.5)
----------------- ----------------- ----------------- ----------------- -----------------
Preferred shareholders' equity 35.7 - 179.6 (179.6) 35.7
----------------- ----------------- ----------------- ----------------- -----------------
Common stock 413.0 1,155.7 240.9 (1,396.6) 413.0
Retained earnings (deficit) 481.2 231.2 (23.7) (207.5) 481.2
Accumulated other comprehensive loss (26.7) (1.3) (22.0) 23.3 (26.7)
Treasury stock, at cost (212.3) - - - (212.3)
----------------- ----------------- ----------------- ----------------- -----------------
Common shareholders' equity 655.2 1,385.6 195.2 (1,580.8) 655.2
----------------- ----------------- ----------------- ----------------- -----------------
Total shareholders' equity 690.9 1,385.6 374.8 (1,760.4) 690.9
----------------- ----------------- ----------------- ----------------- -----------------
Total Liabilities and
Shareholders' Equity $ 1,669.1 $ 2,269.5 $ 717.0 $ (1,923.5) $ 2,732.1
================= ================= ================= ================= =================
CONSOLIDATED STATEMENT OF EARNINGS
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For the Three Months Ended April 2, 2000
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($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
----------------- ----------------- ----------------- ----------------- -----------------
Net sales $ - $ 769.1 $ 99.6 $ (51.1) $ 817.6
Costs and expenses
Cost of sales (excluding depreciation
and amortization) - 651.0 81.0 (51.1) 680.9
Depreciation and amortization 0.5 32.3 7.6 - 40.4
Selling and administrative 3.1 23.1 7.3 - 33.5
Receivable securitization fees and
product development - 3.7 - - 3.7
Interest expense 19.0 3.4 1.0 - 23.4
Equity in earnings of subsidiaries (26.3) - - 26.3 -
Corporate allocations (12.4) 12.4 - - -
----------------- ----------------- ----------------- ----------------- -----------------
(16.1) 725.9 96.9 (24.8) 781.9
----------------- ----------------- ----------------- ----------------- -----------------
Earnings (loss) before taxes 16.1 43.2 2.7 (26.3) 35.7
Provision for taxes 4.0 (16.5) (1.3) - (13.8)
Minority interests - - (0.2) - (0.2)
Equity in earnings of affiliates (0.1) (0.1) (1.5) - (1.7)
----------------- ----------------- ----------------- ----------------- -----------------
Net earnings (loss) 20.0 26.6 (0.3) (26.3) 20.0
Preferred dividends, net of tax (0.6) - - - (0.6)
----------------- ----------------- ----------------- ----------------- -----------------
Earnings (loss) attributable to
common shareholders $ 19.4 $ 26.6 $ (0.3) $ (26.3) $ 19.4
================= ================= ================= ================= =================
CONSOLIDATED STATEMENT OF EARNINGS
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For the Three Months Ended April 4, 1999
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($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
----------------- ----------------- ----------------- ----------------- -----------------
Net sales $ - $ 774.2 $ 94.9 $ (48.8) $ 820.3
Costs and expenses
Cost of sales (excluding depreciation
and amortization) - 661.4 79.3 (48.8) 691.9
Depreciation and amortization 0.8 32.6 8.1 - 41.5
Selling and administrative 1.6 23.2 5.7 - 30.5
Receivable securitization fees and
product development - 3.6 - - 3.6
Interest expense 15.5 9.9 2.8 - 28.2
Equity in earnings of subsidiaries (16.3) - - 16.3 -
Corporate allocations (12.6) 12.6 - - -
----------------- ----------------- ----------------- ----------------- -----------------
(11.0) 743.3 95.9 (32.5) 795.7
----------------- ----------------- ----------------- ----------------- -----------------
Earnings (loss) before taxes 11.0 30.9 (1.0) (16.3) 24.6
Provision for taxes 4.4 (12.3) (1.8) - (9.7)
Minority interests - - 0.5 - 0.5
Equity in earnings (losses) of 0.3 - - - 0.3
affiliates
----------------- ----------------- ----------------- ----------------- -----------------
Net earnings (loss) 15.0 18.6 (2.3) (16.3) 15.7
Preferred dividends, net of tax (0.7) - - - (0.7)
----------------- ----------------- ----------------- ----------------- -----------------
Earnings (loss) attributable to
common shareholders $ 15.0 $ 18.6 $ (2.3) $ (16.3) $ 15.0
================= ================= ================= ================= =================
CONSOLIDATED STATEMENT OF CASH FLOWS
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For the Three Months Ended April 2, 2000
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($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
----------------- ----------------- ----------------- ----------------- -----------------
Cash Flows from Operating Activities
Net earnings (loss) $ 20.0 $ 26.6 $ (0.3) $ (26.3) $ 20.0
Noncash charges to net earnings:
Depreciation and amortization 0.5 32.3 7.6 - 40.4
Equity in earnings of subsidiaries (26.3) - - 26.3 -
Other, net (3.4) 0.4 1.0 - (2.0)
Changes in working capital
components (6.5) (172.3) (7.6) - (186.4)
----------------- ----------------- ----------------- ----------------- -----------------
Net cash (used in) provided by
operating activities (15.7) (113.0) 0.7 - (128.0)
----------------- ----------------- ----------------- ----------------- -----------------
Cash Flows from Investing Activities
Additions to property, plant and
equipment (0.2) (20.4) (2.9) - (23.5)
Investments in and advances to
affiliates, net (105.8) 116.3 (10.5) - -
Other, net 2.5 30.9 1.0 - 34.4
----------------- ----------------- ----------------- ----------------- -----------------
Net cash (used in) provided by
investing activities (103.5) 126.8 (12.4) - 10.9
----------------- ----------------- ----------------- ----------------- -----------------
Cash Flows from Financing Activities
Long-term borrowings 110.5 - - - 110.5
Repayments of long-term borrowings (9.2) (13.9) - - (23.1)
Change in short-term borrowings 25.0 - 18.3 - 43.3
Common and preferred dividends (4.5) - - - (4.5)
Proceeds from issuance of common
stock under various employee and
shareholder plans 15.2 - - - 15.2
Acquisitions of treasury stock (15.6) - - - (15.6)
Other, net (1.0) - (1.0) - (2.0)
----------------- ----------------- ----------------- ----------------- -----------------
Net cash provided by (used in)
financing activities 120.4 (13.9) 17.3 - 123.8
----------------- ----------------- ----------------- ----------------- -----------------
Net Change in Cash and Temporary
Investments 1.2 (0.1) 5.6 - 6.7
Cash and temporary investments -
beginning of period 13.6 0.2 22.0 - 35.8
----------------- ----------------- ----------------- ----------------- -----------------
Cash and Temporary Investments -
End of Period $ 14.8 $ 0.1 $ 27.6 $ - $ 42.5
================= ================= ================= ================= =================
CONSOLIDATED STATEMENT OF CASH FLOWS
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For the Three Months Ended April 4, 1999
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($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
----------------- ----------------- ----------------- ----------------- -----------------
Cash Flows from Operating Activities
Net earnings (loss) $ 15.7 $ 18.6 $ (2.3) $ (16.3) $ 15.7
Noncash charges to net earnings:
Depreciation and amortization 0.8 32.6 8.1 - 41.5
Equity earnings of subsidiaries (16.3) - - 16.3 -
Other, net 2.3 12.3 0.4 - 15.0
Changes in working capital
components (22.8) (143.6) (15.1) - (181.5)
----------------- ----------------- ----------------- ----------------- -----------------
Net cash provided by operating
activities (20.3) (80.1) (8.9) - (109.3)
----------------- ----------------- ----------------- ----------------- -----------------
Cash Flows from Investing Activities
Additions to property, plant and
equipment (0.3) (14.5) (6.7) - (21.5)
Investments in and advances to
affiliates, net (133.0) 93.6 39.4 - -
Other, net 3.7 1.0 (1.5) - 3.2
----------------- ----------------- ----------------- ----------------- -----------------
Net cash (used in) provided by
investing activities (129.6) 80.1 31.2 - (18.3)
----------------- ----------------- ----------------- ----------------- -----------------
Cash Flows from Financing Activities
Long-term borrowings 110.0 - - - 110.0
Repayments of long-term borrowings (5.5) - (12.0) (17.5)
Change in short-term borrowings 47.7 - 2.3 - 50.0
Common and preferred dividends (4.5) - - - (4.5)
Proceeds from issuance of common
stock under various employee and
shareholder plans 7.0 - - - 7.0
Acquisitions of treasury stock (8.8) - - - (8.8)
Other, net (0.5) - - - (0.5)
----------------- ----------------- ----------------- ----------------- -----------------
Net cash provided by (used in)
financing activities 145.4 - (9.7) - 135.7
----------------- ----------------- ----------------- ----------------- -----------------
Net Change in Cash and Temporary
Investments (4.5) - 12.6 - 8.1
Cash and temporary investments -
beginning of period 11.6 0.5 21.9 - 34.0
----------------- ----------------- ----------------- ----------------- -----------------
Cash and Temporary Investments -
End of Period $ 7.1 $ 0.5 $ 34.5 $ - $ 42.1
================= ================= ================= ================= =================