SUBSIDIARY GUARANTEES OF DEBT
Published on August 15, 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 July 1, 2001, and December 31, 2000, and for the six-month periods ended July 1, 2001, and July 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 ----------------------------------------------------------------------------- July 1, 2001 ----------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ------------- -------------- ---------------- -------------- -------------- ASSETS Current assets Cash and temporary investments $ 7.5 $ 0.4 $ 17.0 $ - $ 24.9 Accounts receivable, net 1.0 286.6 41.7 - 329.3 Inventories, net - 452.6 114.0 - 566.6 Deferred income tax benefits and prepaid expenses 269.9 86.7 2.1 (255.1) 103.6 ------------- -------------- ---------------- -------------- -------------- Total current assets 278.4 826.3 174.8 (255.1) 1,024.4 ------------- -------------- ---------------- -------------- -------------- Property, plant and equipment, at cost 24.9 1,553.6 272.1 - 1,850.6 Accumulated depreciation (13.7) (820.3) (123.8) - (957.8) ------------- -------------- ---------------- -------------- -------------- 11.2 733.3 148.3 - 892.8 ------------- -------------- ---------------- -------------- -------------- Investments in subsidiaries 1,575.8 45.9 9.8 (1,631.5) - Investments in affiliates 7.7 15.2 41.6 - 64.5 Goodwill, net - 315.7 31.9 - 347.6 Other assets 82.8 45.4 21.2 - 149.4 ------------- -------------- ---------------- -------------- -------------- Total Assets $ 1,955.9 $ 1,981.8 $ 427.6 $ (1,886.6) $ 2,478.7 ============= ============== ================ ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term debt and current portion of long-term debt $ 64.9 $ - $ 91.8 $ - $ 156.7 Accounts payable 6.8 245.2 56.3 - 308.3 Accrued employee costs and other current liabilities 48.2 337.4 66.1 (255.1) 196.6 ------------- -------------- ---------------- -------------- -------------- Total current liabilities 119.9 582.6 214.2 (255.1) 661.6 Long-term debt 1,027.5 10.1 - - 1,037.6 Intercompany borrowings 159.3 474.3 65.3 (698.9) - Employee benefit obligations, deferred income taxes and other 131.5 64.2 55.3 - 251.0 ------------- -------------- ---------------- -------------- -------------- Total liabilities 1,438.2 1,131.2 334.8 (954.0) 1,950.2 ------------- -------------- ---------------- -------------- -------------- Contingencies Minority interests - - 10.8 - 10.8 ------------- -------------- ---------------- -------------- -------------- Shareholders' Equity: Series B ESOP Convertible Preferred Stock 51.0 - - - 51.0 Convertible preferred stock - - 179.6 (179.6) - Unearned compensation - ESOP (5.4) - - - (5.4) ------------- -------------- ---------------- -------------- -------------- Preferred shareholders' equity 45.6 - 179.6 (179.6) 45.6 ------------- -------------- ---------------- -------------- -------------- Common stock 460.8 724.4 239.1 (963.5) 460.8 Retained earnings (deficit) 376.3 129.4 (313.6) 184.2 376.3 Accumulated other comprehensive loss (28.4) (3.2) (23.1) 26.3 (28.4) Treasury stock, at cost (336.6) - - - (336.6) ------------- -------------- ---------------- -------------- -------------- Common shareholders' equity (deficit) 472.1 850.6 (97.6) (753.0) 472.1 ------------- -------------- ---------------- -------------- -------------- Total shareholders' equity 517.7 850.6 82.0 (932.6) 517.7 ------------- -------------- ---------------- -------------- -------------- Total Liabilities and Shareholders' Equity $ 1,955.9 $ 1,981.8 $ 427.6 $ (1,886.6) $ 2,478.7 ============= ============== ================ ============== ============== 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 Six Months Ended July 1, 2001 ----------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ------------- -------------- ---------------- -------------- -------------- Net sales $ - $ 1,752.3 $ 202.1 $ (111.8) $ 1,842.6 Costs and expenses Cost of sales (excluding depreciation and amortization) - 1,512.4 173.1 (111.8) 1,573.7 Depreciation and amortization 1.1 64.0 12.0 - 77.1 Business consolidation costs - 16.0 237.7 - 253.7 Selling and administrative 4.7 43.6 12.6 - 60.9 Receivable securitization fees and product development - 7.2 (0.2) - 7.0 Interest expense 26.9 17.3 2.7 - 46.9 Equity in net results of subsidiaries 193.9 - - (193.9) - Corporate allocations (24.8) 24.8 - - - ------------- -------------- ---------------- -------------- -------------- 201.8 1,685.3 437.9 (305.7) 2,019.3 ------------- -------------- ---------------- -------------- -------------- Earnings (loss) before taxes (201.8) 67.0 (235.8) 193.9 (176.7) Provision for taxes 58.2 (25.6) (1.7) - 30.9 Minority interests - - 1.2 - 1.2 Equity in net results of affiliates - (0.3) 1.3 - 1.0 ------------- -------------- ---------------- -------------- -------------- Net earnings (loss) (143.6) 41.1 (235.0) 193.9 (143.6) Preferred dividends, net of tax (1.2) - - - (1.2) ------------- -------------- ---------------- -------------- -------------- Earnings (loss) attributable to common shareholders $ (144.8) $ 41.1 $ (235.0) $ 193.9 $ (144.8) ============= ============== ================ ============== ============== CONSOLIDATED STATEMENT OF EARNINGS ----------------------------------------------------------------------------- For the Six Months Ended July 2, 2000 ----------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ------------- -------------- ---------------- -------------- -------------- Net sales $ - $ 1,737.6 $ 219.7 $ (116.3) $ 1,841.0 Costs and expenses Cost of sales (excluding depreciation and amortization) - 1,478.8 182.2 (116.3) 1,544.7 Depreciation and amortization 1.1 63.4 14.8 - 79.3 Business consolidation costs 2.3 22.1 59.0 - 83.4 Selling and administrative 5.2 47.1 13.7 - 66.0 Receivable securitization fees and product development - 7.3 0.1 - 7.4 Interest expense 38.2 6.9 2.1 - 47.2 Equity in net results of subsidiaries (4.1) - - 4.1 - Corporate allocations (25.3) 25.3 - - - ------------- -------------- ---------------- -------------- -------------- 17.4 1,650.9 271.9 (112.2) 1,828.0 ------------- -------------- ---------------- -------------- -------------- Earnings (loss) before taxes (17.4) 86.7 (52.2) (4.1) 13.0 Provision for taxes 22.2 (33.0) 3.4 - (7.4) Minority interests - - 2.4 - 2.4 Equity in net results of affiliates (0.2) (0.3) (2.9) - (3.4) ------------- -------------- ---------------- -------------- -------------- Net earnings (loss) 4.6 53.4 (49.3) (4.1) 4.6 Preferred dividends, net of tax (1.3) - - - (1.3) ------------- -------------- ---------------- -------------- -------------- Earnings (loss) attributable to common shareholders $ 3.3 $ 53.4 $ (49.3) $ (4.1) $ 3.3 ============= ============== ================ ============== ============== CONSOLIDATED STATEMENT OF CASH FLOWS ----------------------------------------------------------------------------- For the Six Months Ended July 1, 2001 ----------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ------------- -------------- ---------------- -------------- -------------- Cash Flows from Operating Activities Net earnings (loss) $ (143.6) $ 41.2 $ (235.1) $ 193.9 $ (143.6) Noncash charges to net earnings: Depreciation and amortization 1.0 64.0 12.1 - 77.1 Business consolidation costs - 16.0 235.2 - 251.2 Deferred income taxes (15.1) 22.5 0.8 - 8.2 Equity in net results of subsidiaries 193.9 - - (193.9) - Other, net 5.0 (20.5) (1.5) - (17.0) Changes in working capital components (51.3) (122.3) (15.8) - (189.4) ------------- -------------- ---------------- -------------- -------------- Net cash provided by (used in) operating activities (10.1) 0.9 (4.3) - (13.5) ------------- -------------- ---------------- -------------- -------------- Cash Flows from Investing Activities Additions to property, plant and equipment (1.4) (26.7) (9.1) - (37.2) Investments in and advances to affiliates, net of dividends 7.9 9.1 (17.0) - - Incentive loan receipts and other, net (1.6) 16.9 2.3 - 17.6 ------------- -------------- ---------------- -------------- -------------- Net cash provided by (used in) investing activities 4.9 (0.7) (23.8) - (19.6) ------------- -------------- ---------------- -------------- -------------- Cash Flows from Financing Activities Long-term borrowings 55.0 - - - 55.0 Repayments of long-term borrowings (26.0) - - - (26.0) Change in short-term borrowings - - 31.9 - 31.9 Common and preferred dividends (10.2) - - - (10.2) Proceeds from issuance of common stock under various employee and shareholder plans 16.6 - - - 16.6 Acquisitions of treasury stock (32.6) - - - (32.6) Other, net (2.4) - 0.1 - (2.3) ------------- -------------- ---------------- -------------- -------------- Net cash provided by (used in) financing activities 0.4 - 32.0 - 32.4 ------------- -------------- ---------------- -------------- -------------- Net Change in Cash and Temporary Investments (4.8) 0.2 3.9 - (0.7) Cash and Temporary Investments - Beginning of Period 12.3 0.2 13.1 - 25.6 ------------- -------------- ---------------- -------------- -------------- Cash and Temporary Investments - End of Period $ 7.5 $ 0.4 $ 17.0 $ - $ 24.9 ============= ============== ================ ============== ============== CONSOLIDATED STATEMENT OF CASH FLOWS ----------------------------------------------------------------------------- For the Six Months Ended July 2, 2000 ----------------------------------------------------------------------------- Ball Guarantor Non-Guarantor Eliminating Consolidated Corporation Subsidiaries Subsidiaries Adjustments Total ------------- -------------- ---------------- -------------- -------------- Cash Flows from Operating Activities Net earnings (loss) $ 4.6 $ 53.4 $ (49.2) $ (4.2) $ 4.6 Noncash charges to net earnings: Depreciation and amortization 1.1 63.4 14.8 - 79.3 Business consolidation costs 2.3 22.1 56.9 81.3 Deferred income taxes (2.8) (4.3) (6.1) (13.2) Equity in net results of subsidiaries (4.2) - - 4.2 - Other, net 3.2 (6.2) 0.9 - (2.1) Changes in working capital components (36.7) (135.4) (18.0) - (190.1) ------------- -------------- ---------------- -------------- -------------- Net cash provided by (used in) operating activities (32.5) (7.0) (0.7) - (40.2) ------------- -------------- ---------------- -------------- -------------- Cash Flows from Investing Activities Additions to property, plant and equipment (0.5) (40.7) (5.0) - (46.2) Investments in and advances to affiliates, net (9.9) 28.8 (18.9) - - Other, net 3.0 32.9 2.5 - 38.4 ------------- -------------- ---------------- -------------- -------------- Net cash provided by (used in) investing activities (7.4) 21.0 (21.4) - (7.8) ------------- -------------- ---------------- -------------- -------------- Cash Flows from Financing Activities Long-term borrowings 60.0 - - - 60.0 Repayments of long-term borrowings (18.5) (13.9) - - (32.4) Change in short-term borrowings 25.0 - 24.1 - 49.1 Common and preferred dividends (10.9) - - - (10.9) Net proceeds from issuance of common stock under various employee and shareholder plans 21.3 - - - 21.3 Acquisitions of treasury stock (37.6) - - - (37.6) Other, net (1.4) - (1.1) - (2.5) ------------- -------------- ---------------- -------------- -------------- Net cash provided by (used in) financing activities 37.9 (13.9) 23.0 - 47.0 ------------- -------------- ---------------- -------------- -------------- Net Change in Cash and Temporary Investments (2.0) 0.1 0.9 - (1.0) Cash and Temporary Investments - Beginning of Period 13.6 0.2 22.0 - 35.8 ------------- -------------- ---------------- -------------- -------------- Cash and Temporary Investments - End of Period $ 11.6 $ 0.3 $ 22.9 $ - $ 34.8 ============= ============== ================ ============== ==============