EXHIBIT 20.1 SUBSIDIARY GUARANTEES OF DEBT
Published on May 15, 2002
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
March 31, 2002, and December 31, 2001 (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
-----------------------------------------------------------------------------
March 31, 2002
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
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ASSETS
Current assets
Cash and temporary investments $ 2.3 $ 0.6 $ 19.0 $ - $ 21.9
Accounts receivable, net 1.5 223.5 26.1 - 251.1
Inventories, net - 425.8 80.5 - 506.3
Deferred income tax benefits and
prepaid expenses 175.7 142.0 1.3 (237.2) 81.8
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Total current assets 179.5 791.9 126.9 (237.2) 861.1
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Property, plant and equipment, at cost 25.6 1,642.1 251.4 - 1,919.1
Accumulated depreciation (13.5) (889.1) (110.6) - (1,013.2)
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12.1 753.0 140.8 - 905.9
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Investments in subsidiaries 1,670.8 59.0 9.8 (1,739.6) -
Investments in affiliates 7.3 20.7 47.2 - 75.2
Goodwill, net - 317.5 31.4 - 348.9
Other assets 112.7 69.6 17.6 - 199.9
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Total Assets $ 1,982.4 $ 2,011.7 $ 373.7 $ (1,976.8) $ 2,391.0
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 87.0 $ - $ 40.9 $ - $ 127.9
Accounts payable 12.7 248.4 39.5 - 300.6
Salaries and wages 9.1 57.8 3.5 - 70.4
Other current liabilities 38.8 256.6 41.8 (237.2) 100.4
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Total current liabilities 147.6 562.8 125.7 (237.2) 598.9
Long-term debt 1,000.3 10.1 - - 1,010.4
Intercompany borrowings 225.6 377.0 96.3 (698.9) -
Employee benefit obligations,
deferred income taxes and other 116.8 108.6 55.8 - 281.2
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Total liabilities 1,490.3 1,058.5 277.8 (936.1) 1,890.5
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Contingencies - - - - -
Minority interests - - 8.4 - 8.4
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Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock - - - - -
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP - - - - -
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Preferred shareholders' equity - - 179.6 (179.6) -
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Common stock 492.8 724.4 239.3 (963.7) 492.8
Retained earnings (deficit) 432.4 233.7 (302.8) 69.1 432.4
Accumulated other comprehensive loss (35.5) (4.9) (28.6) 33.5 (35.5)
Treasury stock, at cost (397.6) - - - (397.6)
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Common shareholders' equity (deficit) 492.1 953.2 (92.1) (861.1) 492.1
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Total shareholders' equity 492.1 953.2 87.5 (1,040.7) 492.1
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Total Liabilities and Shareholders'
Equity $ 1,982.4 $ 2,011.7 $ 373.7 $ (1,976.8) $ 2,391.0
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CONSOLIDATED BALANCE SHEET
-----------------------------------------------------------------------------
December 31, 2001
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
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ASSETS
Current assets
Cash and temporary investments $ 52.7 $ 0.4 $ 30.0 $ - $ 83.1
Accounts receivable, net 1.6 142.6 27.8 - 172.0
Inventories, net - 375.5 73.8 - 449.3
Deferred income tax benefits and
prepaid expenses 183.3 126.2 1.6 (222.0) 89.1
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Total current assets 237.6 644.7 133.2 (222.0) 793.5
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Property, plant and equipment, at cost 25.9 1,620.2 258.7 - 1,904.8
Accumulated depreciation (13.8) (870.8) (115.8) - (1,000.4)
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12.1 749.4 142.9 - 904.4
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Investments in subsidiaries 1,637.8 57.9 9.8 (1,705.5) -
Investments in affiliates 7.4 15.3 46.1 - 68.8
Goodwill, net - 326.6 31.2 - 357.8
Other assets 106.2 65.5 17.4 - 189.1
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Total Assets $ 2,001.1 $ 1,859.4 $ 380.6 $ (1,927.5) $ 2,313.6
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 67.0 $ - $ 48.0 $ - $ 115.0
Accounts payable 4.1 215.7 38.7 - 258.5
Salaries and wages 8.9 76.5 5.6 - 91.0
Other current liabilities 45.5 248.4 38.3 (222.0) 110.2
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Total current liabilities 125.5 540.6 130.6 (222.0) 574.7
Long-term debt 939.0 10.1 - - 949.1
Intercompany borrowings 308.2 291.7 98.9 (698.8) -
Employee benefit obligations,
deferred income taxes and other 124.3 95.4 56.3 - 276.0
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Total liabilities 1,497.0 937.8 285.8 (920.8) 1,799.8
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Contingencies
Minority interests - - 9.7 - 9.7
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Shareholders' Equity:
Convertible preferred stock - - 179.6 (179.6) -
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Preferred shareholders' equity - - 179.6 (179.6) -
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Common stock 478.9 724.5 239.2 (963.7) 478.9
Retained earnings (deficit) 410.0 207.8 (304.7) 96.9 410.0
Accumulated other comprehensive loss (43.7) (10.7) (29.0) 39.7 (43.7)
Treasury stock, at cost (341.1) - - - (341.1)
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Common shareholders' equity 504.1 921.6 (94.5) (827.1) 504.1
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Total shareholders' equity 504.1 921.6 85.1 (1,006.7) 504.1
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Total Liabilities and Shareholders'
Equity $ 2,001.1 $ 1,859.4 $ 380.6 $ (1,927.5) $ 2,313.6
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CONSOLIDATED STATEMENT OF EARNINGS
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For the Three months Ended March 31, 2002
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Net sales $ - $ 840.6 $ 80.6 $ (45.3) $ 875.9
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 722.4 68.6 (45.3) 745.7
Depreciation and amortization 0.5 31.0 4.2 - 35.7
Selling and administrative 7.1 24.6 4.7 - 36.4
Receivable securitization fees and
other - 1.0 (0.1) - 0.9
Interest expense 6.8 8.7 1.9 - 17.4
Equity in net results of subsidiaries (27.8) - - 27.8 -
Corporate allocations (12.6) 12.6 - - -
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(26.0) 800.3 79.3 (17.5) 836.1
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Earnings (loss) before taxes 26.0 40.3 1.3 (27.8) 39.8
Provision for taxes 1.6 (14.9) (0.6) - (13.9)
Minority interests - - (0.2) - (0.2)
Equity in net results of affiliates (0.1) 0.5 1.4 - 1.8
------------- -------------- ---------------- -------------- --------------
Earnings (loss) attributable to common
shareholders $ 27.5 $ 25.9 $ 1.9 $ (27.8) $ 27.5
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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
other - 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 - - -
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(14.1) 764.8 96.2 (24.6) 822.3
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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
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Net earnings (loss) 18.5 21.5 (0.8) (20.7) 18.5
Preferred dividends, net of tax (0.6) - - - (0.6)
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Earnings (loss) attributable to common
shareholders $ 17.9 $ 21.5 $ (0.8) $ (20.7) $ 17.9
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CONSOLIDATED STATEMENT OF CASH FLOWS
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For the Three months Ended March 31, 2002
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Cash Flows from Operating Activities
Net earnings (loss) $ 27.5 $ 25.9 $ 1.9 $ (27.8) $ 27.5
Noncash charges to net earnings:
Depreciation and amortization 0.5 31.0 4.2 - 35.7
Deferred income taxes 0.3 9.7 (0.4) - 9.6
Equity in net results of (27.7) (0.5) (1.2) 27.8 (1.6)
subsidiaries
Other, net 2.5 (8.9) 0.5 - (5.9)
Changes in working capital
components (2.8) (110.4) (2.1) - (115.3)
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Net cash provided by (used in)
operating activities 0.3 (53.2) 2.9 - (50.0)
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Cash Flows from Investing Activities
Additions to property, plant and
equipment (0.5) (27.0) (2.5) - (30.0)
Investments in and advances to
affiliates, net of dividends (82.6) 85.2 (2.6) - -
Incentive loan receipts and other, net (2.6) (4.8) (1.7) - (9.1)
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Net cash provided by (used in)
investing activities (85.7) 53.4 (6.8) - (39.1)
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Cash Flows from Financing Activities
Long-term borrowings 85.0 - - - 85.0
Repayments of long-term borrowings (16.8) - - - (16.8)
Change in short-term borrowings 15.0 - (7.1) - 7.9
Common dividends (5.1) - - - (5.1)
Proceeds from issuance of common
stock under various employee and
shareholder plans 13.3 - - - 13.3
Acquisitions of treasury stock (56.4) - - - (56.4)
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Net cash provided by (used in)
financing activities 35.0 - (7.1) - 27.9
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Net Change in Cash and Temporary
Investments (50.4) 0.2 (11.0) - (61.2)
Cash and Temporary Investments -
Beginning of Period 52.7 0.4 30.0 - 83.1
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Cash and Temporary Investments -
End of Period $ 2.3 $ 0.6 $ 19.0 $ - $ 21.9
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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 (20.7) - - 20.7 -
subsidiaries
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 (0.2) (14.1) (4.6) - (18.9)
equipment
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
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Net cash provided by (used in)
investing activities (110.2) 103.6 1.1 - (5.5)
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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
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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
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Cash and Temporary Investments -
End of Period $ 6.4 $ 0.3 $ 21.3 $ - $ 28.0
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