SUBSIDIARY GUARANTEE OF DEBT
Published on May 13, 2003
EXHIBIT 20.1
Subsidiary Guarantees of Debt
The company's Senior Notes, Senior Subordinated Notes and senior credit facilities 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 30, 2003, and December 31, 2002 (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 30, 2003
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 7.9 $ 1.4 $ 44.8 $ - $ 54.1
Receivables, net 2.3 227.4 222.3 - 452.0
Inventories, net - 433.2 207.5 - 640.7
Deferred taxes and
prepaid expenses 235.1 140.4 3.3 (320.0) 58.8
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Total current assets 245.3 802.4 477.9 (320.0) 1,205.6
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Property, plant and equipment, at cost 32.6 1,772.6 755.1 - 2,560.3
Accumulated depreciation (14.3) (972.9) (140.1) - (1,127.3)
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18.3 799.7 615.0 - 1,433.0
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Investments in subsidiaries 1,592.4 390.7 9.8 (1,992.9) -
Investments in affiliates 5.8 20.6 56.1 - 82.5
Goodwill, net - 337.6 852.2 - 1,189.8
Intangibles and other assets, net 53.7 110.4 85.4 - 249.5
------------- -------------- ---------------- -------------- --------------
Total Assets $ 1,915.5 $ 2,461.4 $ 2,096.4 $ (2,312.9) $ 4,160.4
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 9.5 $ - $ 134.4 $ - $ 143.9
Accounts payable 18.7 238.1 162.0 - 418.8
Accrued employee costs 11.0 67.3 20.2 - 98.5
Income taxes payable and other
current liabilities 38.1 356.7 131.2 (320.0) 206.0
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Total current liabilities 77.3 662.1 447.8 (320.0) 867.2
Long-term debt 1,360.1 10.1 635.6 - 2,005.8
Intercompany borrowings (158.5) 756.6 100.8 (698.9) -
Employee benefit obligations 119.8 179.1 362.8 - 661.7
Deferred taxes and other liabilities (28.0) (1.5) 104.5 - 75.0
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Total liabilities 1,370.7 1,606.4 1,651.5 (1,018.9) 3,609.7
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Contingencies - - - - -
Minority interests - - 5.9 - 5.9
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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 523.9 726.0 566.0 (1,292.0) 523.9
Retained earnings (deficit) 588.7 201.4 (287.3) 85.9 588.7
Accumulated other comprehensive loss (118.3) (72.4) (19.3) 91.7 (118.3)
Treasury stock, at cost (449.5) - - - (449.5)
------------- -------------- ---------------- -------------- --------------
Common shareholders' equity (deficit) 544.8 855.0 259.4 (1,114.4) 544.8
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Total shareholders' equity 544.8 855.0 439.0 (1,294.0) 544.8
------------- -------------- ---------------- -------------- --------------
Total Liabilities and Shareholders'
Equity $ 1,915.5 $ 2,461.4 $ 2,096.4 $ (2,312.9) $ 4,160.4
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CONSOLIDATED BALANCE SHEET
-----------------------------------------------------------------------------
December 31, 2002
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 47.6 $ 0.3 $ 211.3 $ - $ 259.2
Receivables, net 0.8 155.3 189.8 - 345.9
Inventories, net - 362.1 190.4 - 552.5
Deferred taxes and prepaid expenses 247.3 137.4 1.6 (319.4) 66.9
------------- -------------- ---------------- -------------- --------------
Total current assets 295.7 655.1 593.1 (319.4) 1,224.5
------------- -------------- ---------------- -------------- --------------
Property, plant and equipment, at cost 33.4 1,749.9 744.0 - 2,527.3
Accumulated depreciation (15.0) (945.2) (121.2) - (1,081.4)
------------- -------------- ---------------- -------------- --------------
18.4 804.7 622.8 - 1,445.9
------------- -------------- ---------------- -------------- --------------
Investments in subsidiaries 1,736.9 380.8 9.8 (2,127.5) -
Investments in affiliates 5.8 18.6 53.9 - 78.3
Goodwill, net - 319.9 828.2 - 1,148.1
Intangibles and other assets, net 38.5 112.1 85.0 - 235.6
------------- -------------- ---------------- -------------- --------------
Total Assets $ 2,095.3 $ 2,291.2 $ 2,192.8 $ (2,446.9) $ 4,132.4
============= ============== ================ ============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 3.5 $ - $ 123.5 $ - $ 127.0
Accounts payable 9.9 252.3 177.4 - 439.6
Accrued employee costs 15.5 109.3 22.3 - 147.1
Income taxes payable - 307.9 65.6 (319.4) 54.1
Other current liabilities 49.1 35.2 216.8 - 301.1
------------- -------------- ---------------- -------------- --------------
Total current liabilities 78.0 704.7 605.6 (319.4) 1,068.9
Long-term debt 1,317.9 10.1 526.0 - 1,854.0
Intercompany borrowings 112.3 390.5 196.1 (698.9) -
Employee benefit obligations 121.8 173.8 350.9 - 646.5
Deferred taxes and other liabilities (27.6) (1.3) 93.4 - 64.5
------------- -------------- ---------------- -------------- --------------
Total liabilities 1,602.4 1,277.8 1,772.0 (1,018.3) 3,633.9
------------- -------------- ---------------- -------------- --------------
Contingencies
Minority interests - - 5.6 - 5.6
------------- -------------- ---------------- -------------- --------------
Shareholders' equity:
Convertible preferred stock - - 179.6 (179.6) -
------------- -------------- ---------------- -------------- --------------
Preferred shareholders' equity - - 179.6 (179.6) -
------------- -------------- ---------------- -------------- --------------
Common stock 514.5 724.6 563.2 (1,287.8) 514.5
Retained earnings (deficit) 562.0 364.9 (293.6) (71.3) 562.0
Accumulated other comprehensive loss (138.3) (76.1) (34.0) 110.1 (138.3)
Treasury stock, at cost (445.3) - - - (445.3)
------------- -------------- ---------------- -------------- --------------
Common shareholders' equity 492.9 1,013.4 235.6 (1,249.0) 492.9
------------- -------------- ---------------- -------------- --------------
Total shareholders' equity 492.9 1,013.4 415.2 (1,428.6) 492.9
------------- -------------- ---------------- -------------- --------------
Total Liabilities and Shareholders'
Equity $ 2,095.3 $ 2,291.2 $ 2,192.8 $ (2,446.9) $ 4,132.4
============= ============== ================ ============== ==============
CONSOLIDATED STATEMENT OF EARNINGS
-----------------------------------------------------------------------------
For the Three Months Ended March 30, 2003
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Net sales $ - $ 842.3 $ 274.8 $ (46.2) $ 1,070.9
Costs and expenses
Cost of sales (excluding depreciation
and amortization) - 710.7 225.0 (46.2) 889.5
Depreciation and amortization 0.6 31.8 17.5 - 49.9
Business consolidation costs and other - 1.9 (0.5) - 1.4
Selling and administrative 9.4 30.0 13.8 - 53.2
Interest expense 13.7 6.3 12.0 - 32.0
Equity in results of subsidiaries (37.6) - - 37.6 -
Corporate allocations (14.4) 12.9 1.5 - -
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(28.3) 793.6 269.3 (8.6) 1,026.0
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Earnings (loss) before taxes 28.3 48.7 5.5 (37.6) 44.9
Tax provision 3.2 (17.7) (1.2) - (15.7)
Minority interests - - (0.3) - (0.3)
Equity in results of affiliates - 0.3 2.3 - 2.6
------------- -------------- ---------------- -------------- --------------
Net earnings (loss) $ 31.5 $ 31.3 $ 6.3 $ (37.6) $ 31.5
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CONSOLIDATED STATEMENT OF EARNINGS
-----------------------------------------------------------------------------
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 25.6 4.6 - 37.3
Interest expense 6.8 8.7 1.9 - 17.4
Equity in results of subsidiaries (27.8) - - 27.8 -
Corporate allocations (12.6) 12.6 - - -
------------- -------------- ---------------- -------------- --------------
(26.0) 800.3 79.3 (17.5) 836.1
------------- -------------- ---------------- -------------- --------------
Earnings (loss) before taxes 26.0 40.3 1.3 (27.8) 39.8
Tax provision 1.6 (14.9) (0.6) - (13.9)
Minority interests - - (0.2) - (0.2)
Equity in results of affiliates (0.1) 0.5 1.4 - 1.8
------------- -------------- ---------------- -------------- --------------
Net earnings (loss) $ 27.5 $ 25.9 $ 1.9 $ (27.8) $ 27.5
============= ============== ================ ============== ==============
CONSOLIDATED STATEMENT OF CASH FLOWS
-----------------------------------------------------------------------------
For the Three Months Ended March 30, 2003
-----------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Cash flows from operating activities
Net earnings (loss) $ 31.5 $ 31.3 $ 6.3 $ (37.6) $ 31.5
Noncash charges to net earnings:
Depreciation and amortization 0.6 31.8 17.5 - 49.9
Deferred taxes 5.4 1.7 (1.3) - 5.8
Equity in results of subsidiaries (37.6) - - 37.6 -
Other 1.9 (3.0) (1.3) - (2.4)
Withholding tax payment related to
European acquisition - - (138.3) - (138.3)
Changes in working capital components,
excluding effects of acquisitions (9.3) (175.4) (66.3) - (251.0
------------- -------------- ---------------- -------------- --------------
Net cash used in operating
activities (7.5) (113.6) (183.4) - (304.5)
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Cash flows from investing activities
Additions to property, plant and
equipment (0.4) (26.5) (3.4) - (30.3)
Business acquisition - (28.0) - - (28.0)
Investments in and advances to
affiliates, net of dividends (73.3) 168.4 (95.1) - -
Other (7.7) 0.8 1.3 - (5.6)
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
investing activities (81.4) 114.7 (97.2) - (63.9)
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Cash flows from financing activities
Long-term borrowings 44.7 - 116.0 - 160.7
Repayments of long-term borrowings - - (16.3) - (16.3)
Change in short-term borrowings 6.0 - 11.7 - 17.7
Proceeds from issuance of common
stock under various employee and
shareholder plans 13.5 - - - 13.5
Acquisitions of treasury stock (7.3) - - - (7.3)
Common dividends (4.9) - - - (4.9)
Other (2.8) - 1.6 - (1.2)
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Net cash provided by
financing activities 49.2 - 113.0 - 162.2
------------- -------------- ---------------- -------------- --------------
Effect of exchange rate changes on cash - - 1.1 - 1.1
Net Change in Cash and Cash Equivalents (39.7) 1.1 (166.5) - (205.1)
Cash and Cash Equivalents -
Beginning of Period 47.6 0.3 211.3 - 259.2
------------- -------------- ---------------- -------------- --------------
Cash and Cash Equivalents -
End of Period $ 7.9 $ 1.4 $ 44.8 $ - $ 54.1
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CONSOLIDATED STATEMENT OF CASH FLOWS
-----------------------------------------------------------------------------
For the Three Months Ended March 31, 2002
-----------------------------------------------------------------------------
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 taxes 0.3 9.7 (0.4) - 9.6
Equity in results of subsidiaries (27.7) (0.5) (1.2) 27.8 (1.6)
Other 2.5 (8.9) 0.5 - (5.9)
Changes in working capital
components (2.8) (110.4) (2.1) - (115.3)
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
operating activities 0.3 (53.2) 2.9 - (50.0)
------------- -------------- ---------------- -------------- --------------
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) - -
Other (2.6) (4.8) (1.7) - (9.1)
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
investing activities (85.7) 53.4 (6.8) - (39.1)
------------- -------------- ---------------- -------------- --------------
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)
------------- -------------- ---------------- -------------- --------------
Net cash provided by (used in)
financing activities 35.0 - (7.1) - 27.9
------------- -------------- ---------------- -------------- --------------
Net Change in Cash and Cash Equivalents (50.4) 0.2 (11.0) - (61.2)
Cash and Cash Equivalents -
Beginning of Period 52.7 0.4 30.0 - 83.1
------------- -------------- ---------------- -------------- --------------
Cash and Cash Equivalents -
End of Period $ 2.3 $ 0.6 $ 19.0 $ - $ 21.9
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