SUBSIDIARY GUARANTEES OF DEBT
Published on May 16, 2001
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 1, 2001, and December 31, 2000, and for the three-month
periods ended April 1, 2001, and April 2, 2000 (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
-----------------------------------------------------------------------------
April 1, 2001
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- ---------------- --------------- --------------
ASSETS
Current assets
Cash and temporary investments $ 6.4 $ 0.3 $ 21.3 $ - $ 28.0
Accounts receivable, net 1.6 216.0 62.9 - 280.5
Inventories, net - 556.8 129.9 - 686.7
Deferred income tax benefits and
prepaid expenses 203.1 119.6 5.4 (244.0) 84.1
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Total current assets 211.1 892.7 219.5 (244.0) 1,079.3
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Property, plant and equipment, at cost 23.7 1,549.5 339.6 - 1,912.8
Accumulated depreciation (13.3) (796.8) (115.2) - (925.3)
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10.4 752.7 224.4 - 987.5
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Investments in subsidiaries 1,490.2 339.5 9.8 (1,839.5) -
Investments in affiliates 7.7 15.5 58.4 - 81.6
Goodwill, net - 323.6 96.8 - 420.4
Other assets 87.2 41.4 31.9 - 160.5
-------------- -------------- ---------------- --------------- --------------
Total Assets $ 1,806.6 $ 2,365.4 $ 640.8 $ (2,083.5) $ 2,729.3
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 85.4 $ - $ 83.3 $ - $ 168.7
Accounts payable 15.0 234.9 59.8 - 309.7
Accrued employee costs and other
current liabilities 37.7 320.4 31.3 (244.0) 145.4
-------------- -------------- ---------------- --------------- --------------
Total current liabilities 138.1 555.3 174.4 (244.0) 623.8
Long-term debt 1,134.3 10.1 - - 1,144.4
Intercompany borrowings (252.6) 863.7 87.8 (698.9) -
Employee benefit obligations,
deferred income taxes and other 119.0 105.8 53.6 - 278.4
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Total liabilities 1,138.8 1,534.9 315.8 (942.9) 2,046.6
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Contingencies
Minority interests - - 14.9 - 14.9
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Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock 52.3 - - - 52.3
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (10.6) - - - (10.6)
-------------- -------------- ---------------- --------------- --------------
Preferred shareholders' equity 41.7 - 179.6 (179.6) 41.7
-------------- -------------- ---------------- --------------- --------------
Common stock 453.8 724.4 237.3 (961.7) 453.8
Retained earnings (deficit) 543.1 109.8 (79.4) (30.4) 543.1
Accumulated other comprehensive loss
(34.3) (3.7) (27.4) 31.1 (34.3)
Treasury stock, at cost (336.5) - - - (336.5)
-------------- -------------- ---------------- --------------- --------------
Common shareholders' equity 626.1 830.5 130.5 (961.0) 626.1
-------------- -------------- ---------------- --------------- --------------
Total shareholders' equity 667.8 830.5 310.1 (1,140.6) 667.8
-------------- -------------- ---------------- --------------- --------------
Total Liabilities and Shareholders'
Equity $ 1,806.6 $ 2,365.4 $ 640.8 $ (2,083.5) $ 2,729.3
============== ============== ================ =============== ==============
CONSOLIDATED BALANCE SHEET
-----------------------------------------------------------------------------
December 31, 2000
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- ---------------- --------------- --------------
ASSETS
Current assets
Cash and temporary investments $ 12.3 $ 0.2 $ 13.1 $ - $ 25.6
Accounts receivable, net 3.0 171.4 55.8 - 230.2
Inventories, net - 498.8 128.7 - 627.5
Deferred income tax benefits and
prepaid expenses 197.5 114.7 6.2 (232.4) 86.0
-------------- -------------- ---------------- --------------- --------------
Total current assets 212.8 785.1 203.8 (232.4) 969.3
-------------- -------------- ---------------- --------------- --------------
Property, plant and equipment, at cost 25.8 1,534.8 340.6 - 1,901.2
Accumulated depreciation (15.2) (768.2) (114.1) - (897.5)
-------------- -------------- ---------------- --------------- --------------
10.6 766.6 226.5 - 1,003.7
-------------- -------------- ---------------- --------------- --------------
Investments in subsidiaries 1,476.5 340.0 9.8 (1,826.3) -
Investments in affiliates 7.8 15.7 57.7 - 81.2
Goodwill, net - 338.8 98.0 - 436.8
Other assets 81.0 43.9 33.9 - 158.8
-------------- -------------- ---------------- --------------- --------------
Total Assets $ 1,788.7 $ 2,290.1 $ 629.7 $ (2,058.7) $ 2,649.8
============== ============== ================ =============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 67.2 $ - $ 58.5 $ - $ 125.7
Accounts payable 7.4 262.8 61.9 - 332.1
Accrued employee costs and other
current liabilities 45.5 349.5 38.7 (232.4) 201.3
-------------- -------------- ---------------- --------------- --------------
Total current liabilities 120.1 612.3 159.1 (232.4) 659.1
Long-term debt 1,001.5 10.1 - - 1,011.6
Intercompany borrowings (142.1) 59.8 82.3 - -
Employee benefit obligations,
deferred income taxes and other 126.8 98.5 56.5 - 281.8
-------------- -------------- ---------------- --------------- --------------
Total liabilities 1,106.3 780.7 297.9 (232.4) 1,952.5
-------------- -------------- ---------------- --------------- --------------
Contingencies
Minority interests - - 14.9 - 14.9
-------------- -------------- ---------------- --------------- --------------
Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock 53.4 - - - 53.4
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (10.6) - - - (10.6)
-------------- -------------- ---------------- --------------- --------------
Preferred shareholders' equity 42.8 - 179.6 (179.6) 42.8
-------------- -------------- ---------------- --------------- --------------
Common stock 443.9 1,155.7 239.7 (1,395.4) 443.9
Retained earnings (deficit) 529.3 355.7 (78.6) (277.1) 529.3
Accumulated other comprehensive loss
(29.7) (2.0) (23.8) 25.8 (29.7)
Treasury stock, at cost (303.9) - - - (303.9)
-------------- -------------- ---------------- --------------- --------------
Common shareholders' equity 639.6 1,509.4 137.3 (1,646.7) 639.6
-------------- -------------- ---------------- --------------- --------------
Total shareholders' equity 682.4 1,509.4 316.9 (1,826.3) 682.4
-------------- -------------- ---------------- --------------- --------------
Total Liabilities and Shareholders'
Equity $ 1,788.7 $ 2,290.1 $ 629.7 $ (2,058.7) $ 2,649.8
============== ============== ================ =============== ==============
CONSOLIDATED STATEMENT OF EARNINGS
-----------------------------------------------------------------------------
For the Three Months Ended April 1, 2001
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- ---------------- --------------- --------------
Net sales $ - $ 799.7 $ 95.6 $ (45.3) $ 850.0
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 685.1 82.6 (45.3) 722.4
Depreciation and amortization 0.5 31.9 5.9 - 38.3
Selling and administrative 3.7 24.2 6.4 - 34.3
Receivable securitization fees and
product development - 3.1 (0.1) - 3.0
Interest expense 14.7 8.2 1.4 - 24.3
Equity in net results of subsidiaries (20.7) - - 20.7 -
Corporate allocations (12.3) 12.3 - - -
-------------- -------------- ---------------- --------------- --------------
(14.1) 764.8 96.2 (24.6) 822.3
-------------- -------------- ---------------- --------------- --------------
Earnings (loss) before taxes 14.1 34.9 (0.6) (20.7) 27.7
Provision for taxes 4.4 (13.3) (0.8) - (9.7)
Minority interests - - - - -
Equity in net results of affiliates - (0.1) 0.6 - 0.5
-------------- -------------- ---------------- --------------- --------------
Net earnings (loss) 18.5 21.5 (0.8) (20.7) 18.5
Preferred dividends, net of tax (0.6) - - - (0.6)
-------------- -------------- ---------------- --------------- --------------
Earnings (loss) attributable to common
shareholders $ 17.9 $ 21.5 $ (0.8) $ (20.7) $ 17.9
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CONSOLIDATED STATEMENT OF EARNINGS
-----------------------------------------------------------------------------
For the Three Months Ended April 2, 2000
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- ---------------- --------------- --------------
Net sales $ - $ 796.2 $ 100.9 $ (51.1) $ 846.0
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 678.1 82.3 (51.1) 709.3
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 net results of subsidiaries (26.3) - - 26.3 -
Corporate allocations (12.4) 12.4 - - -
-------------- -------------- ---------------- --------------- --------------
(16.1) 753.0 98.2 (24.8) 810.3
-------------- -------------- ---------------- --------------- --------------
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 net results 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
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CONSOLIDATED STATEMENT OF CASH FLOWS
-----------------------------------------------------------------------------
For the Three Months Ended April 1, 2001
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- ---------------- --------------- --------------
Cash Flows from Operating Activities
Net earnings (loss) $ 18.5 $ 21.5 $ (0.8) $ (20.7) $ 18.5
Noncash charges to net earnings:
Depreciation and amortization 0.5 31.9 5.9 - 38.3
Deferred income taxes (6.3) 12.2 0.1 - 6.0
Equity in net results of
subsidiaries (20.7) - - 20.7 -
Other, net 1.7 (5.9) 0.3 - (3.9)
Changes in working capital
components (12.2) (163.2) (24.1) - (199.5)
-------------- -------------- ---------------- --------------- --------------
Net cash provided by (used in)
operating activities (18.5) (103.5) (18.6) - (140.6)
-------------- -------------- ---------------- --------------- --------------
Cash Flows from Investing Activities
Additions to property, plant and
equipment (0.2) (14.1) (4.6) - (18.9)
Investments in and advances to
affiliates, net of dividends (110.4) 104.9 5.5 - -
Incentive loan receipts and other, net 0.4 12.8 0.2 - 13.4
-------------- -------------- ---------------- --------------- --------------
Net cash provided by (used in)
investing activities (110.2) 103.6 1.1 - (5.5)
-------------- -------------- ---------------- --------------- --------------
Cash Flows from Financing Activities
Long-term borrowings 145.0 - - - 145.0
Repayments of long-term borrowings (13.0) - - - (13.0)
Change in short-term borrowings 19.0 - 25.8 - 44.8
Common and preferred dividends (4.1) - - - (4.1)
Proceeds from issuance of common
stock under various employee and
shareholder plans 9.6 - - - 9.6
Acquisitions of treasury stock (32.6) - - - (32.6)
Other, net (1.1) - (0.1) - (1.2)
-------------- -------------- ---------------- --------------- --------------
Net cash provided by (used in)
financing activities 122.8 - 25.7 - 148.5
-------------- -------------- ---------------- --------------- --------------
Net Change in Cash and Temporary
Investments (5.9) 0.1 8.2 - 2.4
Cash and Temporary Investments -
Beginning of Period 12.3 0.2 13.1 - 25.6
-------------- -------------- ---------------- --------------- --------------
Cash and Temporary Investments -
End of Period $ 6.4 $ 0.3 $ 21.3 $ - $ 28.0
============== ============== ================ =============== ==============
CONSOLIDATED STATEMENT OF CASH FLOWS
-----------------------------------------------------------------------------
For the Three Months Ended April 2, 2000
-----------------------------------------------------------------------------
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 net results 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 provided by (used in)
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 provided by (used in)
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)
Net 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
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