SUBSIDIARY GUARANTEES OF DEBT
Published on November 19, 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
September 29, 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
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September 29, 2002
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 44.1 $ 0.7 $ 13.4 $ - $ 58.2
Accounts receivable, net 0.2 273.9 25.3 - 299.4
Inventories, net - 330.9 66.7 - 397.6
Deferred income tax benefits and
prepaid expenses 217.1 121.8 0.6 (275.0) 64.5
------------- -------------- ---------------- -------------- --------------
Total current assets 261.4 727.3 106.0 (275.0) 819.7
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Property, plant and equipment, at cost 26.8 1,718.6 255.2 - 2,000.6
Accumulated depreciation (14.4) (935.2) (119.7) - (1,069.3)
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12.4 783.4 135.5 - 931.3
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Investments in subsidiaries 1,775.1 45.4 9.8 (1,830.3) -
Investments in affiliates 7.2 22.4 49.4 - 79.0
Goodwill, net - 318.9 36.9 - 355.8
Other assets 112.6 65.4 18.3 - 196.3
------------- -------------- ---------------- -------------- --------------
Total Assets $ 2,168.7 $ 1,962.8 $ 355.9 $ (2,105.3) $ 2,382.1
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 82.0 $ - $ 52.1 $ - $ 134.1
Accounts payable 12.0 236.2 38.9 - 287.1
Accrued employee costs and
other current liabilities 38.5 431.7 47.5 (275.0) 242.7
------------- -------------- ---------------- -------------- --------------
Total current liabilities 132.5 667.9 138.5 (275.0) 663.9
Long-term debt 878.8 10.1 - - 888.9
Intercompany borrowings 473.9 165.4 59.6 (698.9) -
Employee benefit obligations,
deferred income taxes and other 141.9 83.7 56.6 - 282.2
------------- -------------- ---------------- -------------- --------------
Total liabilities 1,627.1 927.1 254.7 (973.9) 1,835.0
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Contingencies
Minority interests - - 5.5 - 5.5
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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 508.8 724.6 239.2 (963.8) 508.8
Retained earnings (deficit) 522.2 334.5 (296.0) (38.5) 522.2
Accumulated other comprehensive loss (54.0) (23.4) (27.1) 50.5 (54.0)
Treasury stock, at cost (435.4) - - - (435.4)
------------- -------------- ---------------- -------------- --------------
Common shareholders' equity
(deficit) 541.6 1,035.7 (83.9) (951.8) 541.6
------------- -------------- ---------------- -------------- --------------
Total shareholders' equity 541.6 1,035.7 95.7 (1,131.4) 541.6
------------- -------------- ---------------- -------------- --------------
Total Liabilities and Shareholders'
Equity $ 2,168.7 $ 1,962.8 $ 355.9 $ (2,105.3) $ 2,382.1
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CONSOLIDATED BALANCE SHEET
-------------------------------------------------------------------------------
December 31, 2001
-------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 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
------------- -------------- ---------------- -------------- --------------
Total current assets 237.6 644.7 133.2 (222.0) 793.5
------------- -------------- ---------------- -------------- --------------
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)
------------- -------------- ---------------- -------------- --------------
12.1 749.4 142.9 - 904.4
------------- -------------- ---------------- -------------- --------------
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
------------- -------------- ---------------- -------------- --------------
Total Assets $ 2,001.1 $ 1,859.4 $ 380.6 $ (1,927.5) $ 2,313.6
============= ============== ================ ============== ==============
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
Accrued employee costs and other
current liabilities 54.4 324.9 43.9 (222.0) 201.2
------------- -------------- ---------------- -------------- --------------
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
------------- -------------- ---------------- -------------- --------------
Total liabilities 1,497.0 937.8 285.8 (920.8) 1,799.8
------------- -------------- ---------------- -------------- --------------
Contingencies
Minority interests - - 9.7 - 9.7
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Shareholders' Equity:
Convertible preferred stock - - 179.6 (179.6) -
------------- -------------- ---------------- -------------- --------------
Preferred shareholders' equity - - 179.6 (179.6) -
------------- -------------- ---------------- -------------- --------------
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)
------------- -------------- ---------------- -------------- --------------
Common shareholders' equity 504.1 921.6 (94.5) (827.1) 504.1
------------- -------------- ---------------- -------------- --------------
Total shareholders' equity 504.1 921.6 85.1 (1,006.7) 504.1
------------- -------------- ---------------- -------------- --------------
Total Liabilities and Shareholders'
Equity $ 2,001.1 $ 1,859.4 $ 380.6 $ (1,927.5) $ 2,313.6
============= ============== ================ ============== ==============
CONSOLIDATED STATEMENT OF EARNINGS
-------------------------------------------------------------------------------
For the Nine months Ended September 29, 2002
-------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Net sales $ - $ 2,854.9 $ 281.3 $ (187.5) $ 2,948.7
Costs and expenses
Cost of sales (excluding depreciation
and amortization) - 2,425.2 237.7 (187.5) 2,475.4
Depreciation and amortization 1.5 94.9 12.6 - 109.0
Selling and administrative 19.2 83.0 14.8 - 117.0
Receivable securitization fees and
other - 3.0 (0.2) - 2.8
Interest expense 40.9 7.7 6.5 - 55.1
Equity in net results of subsidiaries (135.4) - - 135.4 -
Corporate allocations (40.6) 40.6 - - -
------------- -------------- ---------------- -------------- --------------
(114.4) 2,654.4 271.4 (52.1) 2,759.3
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Earnings (loss) before taxes 114.4 200.5 9.9 (135.4) 189.4
Provision for taxes 13.2 (76.2) (3.3) - (66.3)
Minority interests - - (1.4) - (1.4)
Equity in net results of affiliates (0.2) 2.4 3.5 - 5.7
------------- -------------- ---------------- -------------- --------------
Earnings (loss) attributable to common
shareholders $ 127.4 $ 126.7 $ 8.7 $ (135.4) $ 127.4
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CONSOLIDATED STATEMENT OF EARNINGS
-------------------------------------------------------------------------------
For the Nine months Ended September 30, 2001
-------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Net sales $ - $ 2,708.8 $ 331.2 $ (196.9) $ 2,843.1
Costs and expenses
Cost of sales (excluding depreciation
and amortization) - 2,339.7 283.9 (196.9) 2,426.7
Depreciation and amortization 1.5 95.6 17.6 - 114.7
Business consolidation costs - 16.0 237.7 - 253.7
Selling and administrative 8.7 63.7 19.2 - 91.6
Receivable securitization fees and
other - 9.0 (0.3) - 8.7
Interest expense 46.0 18.2 4.3 - 68.5
Equity in net results of subsidiaries 151.1 - - (151.1) -
Corporate allocations (39.4) 39.4 - - -
------------- -------------- ---------------- -------------- --------------
167.9 2,581.6 562.4 (348.0) 2,963.9
------------- -------------- ---------------- -------------- --------------
Earnings (loss) before taxes (167.9) 127.2 (231.2) 151.1 (120.8)
Provision for taxes 60.7 (45.6) (3.8) - 11.3
Minority interests - - 0.7 - 0.7
Equity in net results of affiliates (0.1) (0.4) 2.0 - 1.5
------------- -------------- ---------------- -------------- --------------
Net earnings (loss) (107.3) 81.2 (232.3) 151.1 (107.3)
Preferred dividends, net of tax (1.8) - - - (1.8)
------------- -------------- ---------------- -------------- --------------
Earnings (loss) attributable to common
shareholders $ (109.1) $ 81.2 $ (232.3) $ 151.1 $ (109.1)
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CONSOLIDATED STATEMENT OF CASH FLOWS
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For the Nine months Ended September 29, 2002
-------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Cash Flows from Operating Activities
Net earnings (loss) $ 127.4 $ 126.7 $ 8.7 $ (135.4) $ 127.4
Noncash charges to net earnings:
Depreciation and amortization 1.5 94.9 12.6 - 109.0
Deferred income taxes (15.4) 23.4 0.1 - 8.1
Equity in net results of
subsidiaries (135.4) - 135.4
Other, net 14.7 (16.0) (2.7) - (4.0)
Changes in working capital
components (16.4) 11.9 15.4 - 10.9
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
operating activities (23.6) 240.9 34.1 - 251.4
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Cash Flows from Investing Activities
Additions to property, plant and
equipment (2.1) (80.3) (5.3) - (87.7)
Acquisitions of previously leased - (43.1) - - (43.1)
assets
Investments in and advances to
affiliates, net of dividends 152.8 (128.5) (24.3) - -
Miscellaneous investments and
other, net (5.2) 11.3 (25.0) - (18.9)
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
investing activities 145.5 (240.6) (54.6) - (149.7)
------------- -------------- ---------------- -------------- --------------
Cash Flows from Financing Activities
Repayments of long-term borrowings (50.2) - - - (50.2)
Change in short-term borrowings - - 3.9 - 3.9
Common dividends (15.3) - - - (15.3)
Proceeds from issuance of common
stock under various employee and
shareholder plans 29.3 - - - 29.3
Acquisitions of treasury stock (94.3) - - - (94.3)
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
financing activities (130.5) - 3.9 - (126.6)
------------- -------------- ---------------- -------------- --------------
Net Change in Cash and Cash Equivalents (8.6) 0.3 (16.6) - (24.9)
Cash and Cash Equivalents - Beginning
of Period 52.7 0.4 30.0 - 83.1
------------- -------------- ---------------- -------------- --------------
Cash and Cash Equivalents -
End of Period $ 44.1 $ 0.7 $ 13.4 $ - $ 58.2
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CONSOLIDATED STATEMENT OF CASH FLOWS
-------------------------------------------------------------------------------
For the Nine months Ended September 30, 2001
-------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Cash Flows from Operating Activities
Net earnings (loss) $ (107.3) $ 81.2 $ (232.3) $ 151.1 $ (107.3)
Noncash charges to net earnings:
Depreciation and amortization 1.5 95.6 17.6 - 114.7
Business consolidation costs - 16.0 235.2 - 251.2
Deferred income taxes (25.6) 46.1 2.1 - 22.6
Equity in net results of 151.1 - - (151.1) -
subsidiaries
Other, net 9.7 (31.8) (1.7) - (23.8)
Changes in working capital
components (50.5) (104.7) 2.3 - (152.9)
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
operating activities (21.1) 102.4 23.2 - 104.5
------------- -------------- ---------------- -------------- --------------
Cash Flows from Investing Activities
Additions to property, plant and
equipment (2.2) (36.2) (11.1) - (49.5)
Investments in and advances to
affiliates, net of dividends 114.1 (83.1) (31.0) - -
Incentive loan receipts and other, net (0.8) 17.2 2.6 - 19.0
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
investing activities 111.1 (102.1) (39.5) - (30.5)
------------- -------------- ---------------- -------------- --------------
Cash Flows from Financing Activities
Repayments of long-term borrowings (39.0) - - - (39.0)
Change in short-term borrowings 3.5 - 25.1 - 28.6
Common and preferred dividends (14.4) - - - (14.4)
Proceeds from issuance of common
stock under various employee and
shareholder plans 23.4 - - - 23.4
Acquisitions of treasury stock (58.1) - - - (58.1)
Other, net (3.7) - - (3.7)
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
financing activities (88.3) - 25.1 - (63.2)
------------- -------------- ---------------- -------------- --------------
Net Change in Cash and Cash Equivalents 1.7 0.3 8.8 - 10.8
Cash and Cash Equivalents - Beginning
of Period 12.3 0.2 13.1 - 25.6
------------- -------------- ---------------- -------------- --------------
Cash and Cash Equivalents -
End of Period $ 14.0 $ 0.5 $ 21.9 $ - $ 36.4
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