Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

May 10, 2006

Documents



Exhibit 20

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 unaudited condensed, consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of April 2, 2006, and December 31, 2005 (in millions of dollars). 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.

Page 1 of 6
 
 
 
CONSOLIDATED BALANCE SHEET
  
 
April 2, 2006
  
 
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
ASSETS
                              
Current assets
                              
Cash and cash equivalents
$
6.5
 
$
1.4
 
$
39.0
 
$
–  
$
46.9
 
Receivables, net
  
(0.4
)
  
215.3
    
371.6
     –    
586.5
  
Inventories, net
  
–
    
572.0
    
289.0
    
–
    
861.0
  
Deferred taxes, prepaids and other current assets
  
490.8
    
22.5
    
66.9
    
(476.7
)
  
103.5
  
Total current assets
  
496.9
    
811.2
    
766.5
    
(476.7
)
  
1,597.9
  
                               
Property, plant and equipment, at cost
  
44.1
    
2,392.0
    
1,062.6
    
–
    
3,498.7
  
Accumulated depreciation
  
(16.9
)
  
(1,267.0
)
  
(393.7
)
  
–
    
(1,677.6
)
Total property, plant and equipment, net
  
27.2
    
1,125.0
    
668.9
    
–
    
1,821.1
  
                               
Investments in subsidiaries
  
2,035.2
    
501.4
    
88.4
    
(2,625.0
)
  
–
  
Investments in affiliates
  
1.4
    
18.1
    
49.5
    
–
    
69.0
  
Goodwill
  
–
    
797.8
    
940.6
    
–
    
1,738.4
  
Intangibles and other assets, net
  
131.8
    
123.3
    
93.1
    
–
    
348.2
  
Total Assets
$
2,692.5
 
$
3,376.8
 
$
2,607.0
 
$
(3,101.7
)
$
5,574.6
 
                               
LIABILITIES AND SHAREHOLDERS’ EQUITY
                              
Current liabilities
                              
Short-term debt and current portion of long-term debt
$
11.0
 
$
5.5
 
$
102.5
 
$
–
  
$
119.0
 
Accounts payable
  
54.8
    
346.2
    
227.0
    
–
    
628.0
  
Accrued employee costs
  
11.7
    
116.1
    
21.2
    
–
    
149.0
  
Income taxes payable
  
–
    
492.8
    
88.4
    
(476.7
)
  
104.5
  
Other current liabilities
  
32.3
    
100.4
    
50.6
    
–
    
183.3
  
Total current liabilities
  
109.8
    
1,061.0
    
489.7
    
(476.7
)
  
1,183.8
  
                               
Long-term debt
  
1,641.7
    
31.9
    
860.1
    
–
    
2,533.7
  
Intercompany borrowings
  
(255.2
)
  
762.8
    
191.3
    
(698.9
)
  
–
  
Employee benefit obligations
  
166.0
    
293.6
    
404.2
    
–
    
863.8
  
Deferred taxes and other liabilities
  
138.7
    
(93.3
)
  
51.1
    
–
    
96.5
  
Total liabilities
  
1,801.0
    
2,056.0
    
1,996.4
    
(1,175.6
)
  
4,677.8
  
                               
Contingencies
                              
Minority interests
  
–
    
–
    
5.3
    
–
    
5.3
  
                               
Shareholders’ equity:
                              
Convertible preferred stock
  
–
    
–
    
179.6
    
(179.6
)
  
–
  
Preferred shareholders’ equity
  
–
    
–
    
179.6
    
(179.6
)
  
–
  
                               
Common stock
  
678.2
    
838.2
    
495.5
    
(1,333.7
)
  
678.2
  
Retained earnings (deficit)
  
1,262.3
    
688.8
    
(108.0
)
  
(580.8
)
  
1,262.3
  
Accumulated other comprehensive earnings (loss)
  
(93.6
)
  
(206.2
)
  
38.2
    
168.0
    
(93.6
)
Treasury stock, at cost
  
(955.4
)
  
–
    
–
    
–
    
(955.4
)
Common shareholders’ equity
  
891.5
    
1,320.8
    
425.7
    
(1,746.5
)
  
891.5
  
Total shareholders’ equity
  
891.5
    
1,320.8
    
605.3
    
(1,926.1
)
  
891.5
  
Total Liabilities and Shareholders’ Equity
$
2,692.5
 
$
3,376.8
 
$
2,607.0
 
$
(3,101.7
)
$
5,574.6
 
 
Page 2 of 6
 
 
CONSOLIDATED BALANCE SHEET
  
 
December 31, 2005
  
($ in millions)
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
ASSETS
                              
Current assets
                              
Cash and cash equivalents
$
8.0
 
$
1.7
 
$
51.3
 
$
–
  
$
61.0
  
Receivables, net
  
0.8
    
166.0
    
209.8
    
–
    
376.6
  
Inventories, net
  
–
    
439.4
    
230.9
    
–
    
670.3
  
Deferred taxes and prepaid expenses
  
340.0
    
193.0
    
55.6
    
(470.7
)
  
117.9
  
Total current assets
  
348.8
    
800.1
    
547.6
    
(470.7
)
  
1,225.8
  
                               
Property, plant and equipment, at cost
  
45.7
    
2,081.9
    
1,025.8
    
–
    
3,153.4
  
Accumulated depreciation
  
(17.0
)
  
(1,237.0
)
  
(342.8
)
  
–
    
(1,596.8
)
Total property, plant and equipment, net
  
28.7
    
844.9
    
683.0
    
–
    
1,556.6
  
                               
Investment in subsidiaries
  
1,988.6
    
453.8
    
88.4
    
(2,530.8
)
  
–
  
Investment in affiliates
  
1.4
    
17.0
    
47.0
    
–
    
65.4
  
Goodwill, net
  
–
    
340.8
    
917.8
    
–
    
1,258.6
  
Intangibles and other assets
  
118.3
    
62.3
    
56.4
    
–
    
237.0
  
 
$
2,485.8
 
$
2,518.9
 
$
2,340.2
 
$
(3,001.5
)
$
4,343.4
  
                               
LIABILITIES AND SHAREHOLDERS’ EQUITY
                              
Current liabilities
                              
Short-term debt and current portion of long-term debt
$
29.1
 
$
3.3
 
$
84.0
 
$
–
  
$
116.4
  
Accounts payable
  
59.5
    
305.3
    
187.6
    
–
    
552.4
  
Accrued employee costs
  
15.8
    
154.7
    
27.9
    
–
    
198.4
  
Income taxes payable
  
–
    
507.1
    
91.1
    
(470.7
)
  
127.5
  
Other current liabilities
  
18.9
    
111.4
    
51.0
    
–
    
181.3
  
Total current liabilities
  
123.3
    
1,081.8
    
441.6
    
(470.7
)
  
1,176.0
  
                               
Long-term debt
  
600.2
    
20.8
    
852.3
    
–
    
1,473.3
  
Intercompany borrowings
  
792.9
    
(110.0
)
  
16.0
    
(698.9
)
  
–
  
Employee benefit obligations
  
164.7
    
218.6
    
400.9
    
–
    
784.2
  
Deferred taxes and other liabilities
  
(30.6
)
  
45.1
    
55.0
    
–
    
69.5
  
Total liabilities
  
1,650.5
    
1,256.3
    
1,765.8
    
(1,169.6
)
  
3,503.0
  
                               
Minority interests
  
–
    
–
    
5.1
    
–
    
5.1
  
Shareholders’ equity
                              
Convertible preferred stock
  
–
    
–
    
179.6
    
(179.6
)
  
–
  
Preferred shareholders’ equity
  
–
    
–
    
179.6
    
(179.6
)
  
–
  
                               
Common stock
  
633.6
    
804.5
    
487.0
    
(1,291.5
)
  
633.6
  
Retained earnings
  
1,227.9
    
649.8
    
(119.1
)
  
(530.7
)
  
1,227.9
  
Accumulated other comprehensive earnings (loss)
  
(100.7
)
  
(191.7
)
  
21.8
    
169.9
    
(100.7
)
Treasury stock, at cost
  
(925.5
)
  
–
    
–
    
–
    
(925.5
)
Common shareholders’ equity
  
835.3
    
1,262.6
    
389.7
    
(1,652.3
)
  
835.3
  
Total shareholders’ equity
  
835.3
    
1,262.6
    
569.3
    
(1,831.9
)
  
835.3
  
 
$
2,485.8
 
$
2,518.9
 
$
2,340.2
 
$
(3,001.5
)
$
4,343.4
  

Page 3 of 6


 
CONSOLIDATED STATEMENT OF EARNINGS
  
 
For the Three Months Ended April 2, 2006
  
 
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
                     
Net sales
$
–
  
$
1,063.4
 
$
339.3
 
$
(37.8
)
$
1,364.9
 
Costs and expenses
                              
Cost of sales (excluding depreciation and amortization)
  
–
    
925.6
    
268.2
    
(37.8
)
  
1,156.0
  
Depreciation and amortization
  
0.8
    
33.2
    
20.6
    
–
    
54.6
  
Business consolidation costs
  
–
    
–
    
2.1
    
–
    
2.1
  
Selling, general and administrative
  
19.4
    
28.0
    
23.2
    
–
    
70.6
  
Interest expense
  
7.8
    
4.3
    
11.2
    
–
    
23.3
  
Equity in results of subsidiaries
  
(50.1
)
  
–
    
–
    
50.1
    
–
  
Corporate allocations
  
(18.0
)
  
14.7
    
3.3
    
–
    
–
  
   
(40.1
)
  
1,005.8
    
328.6
    
12.3
    
1,306.6
  
Earnings (loss) before taxes
  
40.1
    
57.6
    
10.7
    
(50.1
)
  
58.3
  
Tax provision
  
4.5
    
(19.4
)
  
(1.8
)
  
–
    
(16.7
)
Minority interests
  
–
    
–
    
(0.2
)
  
–
    
(0.2
)
Equity in results of affiliates
  
–
    
0.7
    
2.5
    
–
    
3.2
  
Net earnings (loss)
$
44.6
 
$
38.9
 
$
11.2
 
$
(50.1
)
$
44.6
 
 



 
CONSOLIDATED STATEMENT OF EARNINGS
  
 
For the Three Months Ended April 3, 2005
  
 
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
                     
Net sales
$
–
  
$
1,026.0
 
$
352.6
 
$
(54.5
)
$
1,324.1
 
Costs and expenses
                              
Cost of sales (excluding depreciation and amortization)
  
–
    
873.6
    
277.7
    
(54.5
)
  
1,096.8
  
Depreciation and amortization
  
0.7
    
32.5
    
20.2
    
–
    
53.4
  
Selling, general and administrative
  
4.0
    
39.3
    
19.7
    
–
    
63.0
  
Interest expense
  
6.0
    
10.3
    
9.5
    
–
    
25.8
  
Equity in results of subsidiaries
  
(55.6
)
  
–
    
–
    
55.6
    
–
  
Corporate allocations
  
(16.2
)
  
14.5
    
1.7
    
–
    
–
  
   
(61.1
)
  
970.2
    
328.8
    
1.1
    
1,239.0
  
Earnings (loss) before taxes
  
61.1
    
55.8
    
23.8
    
(55.6
)
  
85.1
  
Tax provision
  
(2.5
)
  
(20.3
)
  
(7.0
)
  
–
    
(29.8
)
Minority interests
  
–
    
–
    
(0.2
)
  
–
    
(0.2
)
Equity in results of affiliates
  
–
    
0.3
    
3.2
    
–
    
3.5
  
Net earnings (loss)
$
58.6
 
$
35.8
 
$
19.8
 
$
(55.6
)
$
58.6
 


Page 4 of 6
   
CONSOLIDATED STATEMENT OF CASH FLOWS
  
   
For the Three Months Ended April 2, 2006
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
                       
Cash flows from operating activities
                      
Net earnings (loss)
  
$
44.6
 
$
38.9
 
$
11.2
 
$
(50.1
)
$
44.6
 
Adjustments to reconcile net earnings to net cash provided by operating activities:
                               
Depreciation and amortization
    
0.8
    
33.2
    
20.6
    
-
    
54.6
  
Business consolidation costs
    
-
    
-
    
2.1
    
-
    
2.1
  
Deferred taxes
    
(1.1
)
  
(0.4
)
  
(3.8
)
  
-
    
(5.3
)
Equity in results of subsidiaries
    
(50.1
)
  
-
    
-
    
50.1
    
-
  
Other, net
    
3.7
    
(6.1
)
  
(12.2
)
  
-
    
(14.6
)
Changes in working capital components, excluding effects of acquisitions
    
38.7
    
(103.0
)
  
(188.9
)
  
-
    
(253.2
)
Net cash provided by (used in) operating activities
    
36.6
    
(37.4
)
  
(171.0
)
  
-
    
(171.8
)
                                 
Cash flows from investing activities
                                
Additions to property, plant and equipment
    
(0.4
)
  
(51.2
)
  
(12.8
)
  
-
    
(64.4
)
Business acquisitions, net of cash acquired
    
-
    
(742.2
)
  
(25.7
)
  
-
    
(767.9
)
Investments in and advances to affiliates, net of dividends
    
(1,025.5
)
  
840.2
    
185.3
    
-
    
-
  
Other, net
    
1.1
    
(0.2
)
  
0.6
    
-
    
1.5
  
Net cash provided by (used in) investing activities
    
(1,024.8
)
  
46.6
    
147.4
    
-
    
(830.8
)
                                 
Cash flows from financing activities
                                
Long-term borrowings
    
1,039.1
    
-
    
12.0
    
-
    
1,051.1
  
Repayments of long-term borrowings
    
-
    
(2.5
)
  
(17.5
)
  
-
    
(20.0
)
Change in short-term borrowings
    
(18.0
)
  
-
    
16.5
    
-
    
(1.5
)
Proceeds from issuance of common stock
    
9.3
    
-
    
-
    
-
    
9.3
  
Acquisitions of treasury stock
    
(36.1
)
  
-
    
-
    
-
    
(36.1
)
Common dividends
    
(10.2
)
  
-
    
-
    
-
    
(10.2
)
Other, net
    
2.6
    
(7.0
)
  
-
    
-
    
(4.4
)
Net cash provided by (used in) financing activities
    
986.7
    
(9.5
)
  
11.0
    
-
    
988.2
  
                                 
Effect of exchange rate changes on cash
    
-
    
-
    
0.3
    
-
    
0.3
  
                                 
Net change in cash and cash equivalents
    
(1.5
)
  
(0.3
)
  
(12.3
)
  
-
    
(14.1
)
Cash and cash equivalents - Beginning of period
   
8.0
    
1.7
    
51.3
    
-
    
61.0
  
Cash and cash equivalents - End of period
  
$
6.5
 
$
1.4
 
$
39.0
 
$
-
 
$
46.9
 




Page 5 of 6


 
CONSOLIDATED STATEMENT OF CASH FLOWS
  
 
For the Three Months Ended April 3, 2005
  
 
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
 
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
                     
Cash flows from operating activities
                              
Net earnings (loss)
$
58.6
 
$
35.8
 
$
19.8
 
$
(55.6
)
$
58.6
 
Adjustments to reconcile net earnings to net cash provided by operating activities:
                             
Depreciation and amortization
  
0.7
    
32.5
    
20.2
    
–
    
53.4
  
Deferred taxes
  
(0.1
)
  
(5.5
)
  
(6.2
)
  
–
    
(11.8
)
Equity in results of subsidiaries
  
(55.6
)
  
–
    
–
    
55.6
    
–
  
Other, net
  
3.0
    
(2.6
)
  
(4.5
)
  
–
    
(4.1
)
Prepaid common stock repurchase
  
(108.5
)
  
–
    
–
    
–
    
(108.5
)
Changes in other working capital components
  
13.7
    
(97.0
)
  
(65.3
)
  
-
    
(148.6
)
Net cash used in operating activities
  
(88.2
)
  
(36.8
)
  
(36.0
)
  
–
    
(161.0
)
                               
Cash flows from investing activities
                              
Additions to property, plant and equipment
  
(1.0
)
  
(39.3
)
  
(40.3
)
  
–
    
(80.6
)
Investments in and advances to affiliates, net of dividends
  
(133.2
)
  
78.1
    
55.1
    
–
    
–
  
Other, net
  
(10.1
)
  
0.3
    
1.9
    
–
    
(7.9
)
Net cash provided by (used in) investing activities
  
(144.3
)
  
39.1
    
16.7
    
–
    
(88.5
)
                               
Cash flows from financing activities
                              
Long-term borrowings
  
135.0
    
–
    
–
    
–
    
135.0
  
Repayments of long-term borrowings
  
(8.8
)
  
(1.9
)
  
(16.0
)
  
–
    
(26.7
)
Change in short-term borrowings
  
6.0
    
–
    
28.0
    
–
    
34.0
  
Proceeds from issuance of common stock
  
10.8
    
–
    
–
    
–
    
10.8
  
Acquisitions of treasury stock
  
(2.1
)
  
–
    
–
    
–
    
(2.1
)
Common dividends
  
(11.1
)
  
–
    
–
    
–
    
(11.1
)
Net cash provided by (used in) financing activities
  
129.8
    
(1.9
)
  
12.0
    
–
    
139.9
  
                               
Effect of exchange rate changes on cash
  
–
    
–
    
(2.3
)
  
–
    
(2.3
)
                               
Net change in cash and cash equivalents
  
(102.7
)
  
0.4
    
(9.6
)
  
–
    
(111.9
)
Cash and cash equivalents - Beginning of period
 
113.8
    
0.6
    
84.3
    
–
    
198.7
  
Cash and cash equivalents - End of period
$
11.1
 
$
1.0
 
$
74.7
 
$
–
  
$
86.8
 

 
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