Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

November 8, 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 October 1, 2006, and December 31, 2005, and for the three and nine months ended October 1, 2006, and October 2, 2005. 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 7
 
   
CONSOLIDATED BALANCE SHEET
  
   
October 1, 2006
  
($ in millions)
  
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
ASSETS
                                
Current assets
                                
Cash and cash equivalents
  
$
7.4
 
$
3.5
 
$
48.2
 
$
–
  
$
59.1
 
Receivables, net
    
(0.7
)
  
249.0
    
519.9
    
-
    
768.2
  
Inventories, net
    
-
    
543.1
    
225.3
    
-
    
768.4
  
Deferred taxes, prepaids and other current assets
    
517.8
    
37.1
    
36.3
    
(492.5
)
  
98.7
  
Total current assets
    
524.5
    
832.7
    
829.7
    
(492.5
)
  
1,694.4
  
                                 
Property, plant and equipment, at cost
    
46.0
    
2,440.9
    
1,140.0
    
-
    
3,626.9
  
Accumulated depreciation
    
(18.4
)
  
(1,342.9
)
  
(444.0
)
  
-
    
(1,805.3
)
     
27.6
    
1,098.0
    
696.0
    
-
    
1,821.6
  
                                 
Investments in subsidiaries
    
2,179.1
    
641.9
    
88.4
    
(2,909.4
)
  
-
  
Investments in affiliates
    
1.4
    
23.1
    
49.0
    
-
    
73.5
  
Goodwill
    
-
    
739.4
    
985.4
    
-
    
1,724.8
  
Intangibles and other assets, net
    
102.0
    
162.1
    
150.3
    
-
    
414.4
  
Total Assets
  
$
2,834.6
 
$
3,497.2
 
$
2,798.8
 
$
(3,401.9
)
$
5,728.7
 
                                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                
Current liabilities
                                
Short-term debt and current portion of long-term debt
  
$
30.0
 
$
11.3
 
$
95.6
 
$
–
  
$
136.9
 
Accounts payable
    
52.9
    
377.1
    
228.9
    
-
    
658.9
  
Accrued employee costs
    
16.9
    
153.4
    
28.8
    
-
    
199.1
  
Income taxes payable
    
–
    
506.4
    
93.8
    
(492.4
)
  
107.8
  
Other current liabilities
    
25.8
    
85.8
    
54.7
    
–
    
166.3
  
Total current liabilities
    
125.6
    
1,134.0
    
501.8
    
(492.4
)
  
1,269.0
  
                                 
Long-term debt
    
1,591.4
    
14.2
    
806.1
    
-
    
2,411.7
  
Intercompany borrowings
    
(291.9
)
  
773.9
    
216.9
    
(698.9
)
  
-
  
Employee benefit obligations
    
180.7
    
234.1
    
422.6
    
–
    
837.4
  
Deferred taxes and other liabilities
    
108.9
    
(107.8
)
  
84.7
    
-
    
85.8
  
Total liabilities
    
1,714.7
    
2,048.4
    
2,032.1
    
(1,191.3
)
  
4,603.9
  
                                 
Contingencies
                                
Minority interests
    
-
    
-
    
4.9
    
-
    
4.9
  
                                 
Shareholders’ equity:
                                
Convertible preferred stock
    
-
    
-
    
179.6
    
(179.6
)
  
-
  
Preferred shareholders’ equity
    
-
    
-
    
179.6
    
(179.6
)
  
-
  
                                 
Common stock
    
694.1
    
824.4
    
495.5
    
(1,319.9
)
  
694.1
  
Retained earnings (deficit)
    
1,475.6
    
794.1
    
23.5
    
(817.6
)
  
1,475.6
  
Accumulated other comprehensive earnings (loss)
    
(57.5
)
  
(169.7
)
  
63.2
    
106.5
    
(57.5
)
Treasury stock, at cost
    
(992.3
)
  
-
    
-
    
-
    
(992.3
)
Common shareholders’ equity
    
1,119.9
    
1,448.8
    
582.2
    
(2,031.0
)
  
1,119.9
  
Total shareholders’ equity
    
1,119.9
    
1,448.8
    
761.8
    
(2,210.6
)
  
1,119.9
  
Total Liabilities and Shareholders’ Equity
  
$
2,834.6
 
$
3,497.2
 
$
2,798.8
 
$
(3,401.9
)
$
5,728.7
 

Page 2 of 7


   
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
)
     
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 7


   
CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Three Months Ended October 1, 2006
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
 
$
1,379.6
 
$
489.8
 
$
(47.1
)
$
1,822.3
 
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
1,190.7
    
382.4
    
(47.1
)
  
1,526.0
  
Depreciation and amortization
    
0.9
    
40.7
    
22.9
    
-
    
64.5
  
Property insurance gain
    
-
    
-
    
(2.8
)
  
-
    
(2.8
)
Selling, general and administrative
    
3.4
    
47.9
    
15.2
    
-
    
66.5
  
Interest expense
    
6.1
    
16.2
    
14.9
    
-
    
37.2
  
Equity in results of subsidiaries
    
(94.5
)
  
-
    
-
    
94.5
    
-
  
Corporate allocations
    
(21.6
)
  
17.7
    
3.9
    
-
    
-
  
     
(105.7
)
  
1,313.2
    
436.5
    
47.4
    
1,691.4
  
Earnings (loss) before taxes
    
105.7
    
66.4
    
53.3
    
(94.5
)
  
130.9
  
Tax provision
    
(4.2
)
  
(11.7
)
  
(17.0
)
  
-
    
(32.9
)
Minority interests
    
-
    
-
    
(0.1
)
  
-
    
(0.1
)
Equity in results of affiliates
    
-
    
1.3
    
2.3
    
-
    
3.6
  
Net earnings (loss)
  
$
101.5
 
$
56.0
 
$
38.5
 
$
(94.5
)
$
101.5
 



   
CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Three Months Ended October 2, 2005
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
 
$
1,217.6
 
$
453.8
 
$
(87.5
)
$
1,583.9
 
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
1,062.2
    
354.4
    
(87.5
)
  
1,329.1
  
Depreciation and amortization
    
0.8
    
32.5
    
21.1
    
-
    
54.4
  
Business consolidation costs
    
-
    
19.3
    
−
    
-
    
19.3
  
Selling, general and administrative
    
(4.1
)
  
39.9
    
16.8
    
-
    
52.6
  
Interest expense
    
8.5
    
9.1
    
8.1
    
-
    
25.7
  
Equity in results of subsidiaries
    
(68.9
)
  
-
    
-
    
68.9
    
-
  
Corporate allocations
    
(18.7
)
  
16.9
    
1.8
    
-
    
-
  
     
(82.4
)
  
1,179.9
    
402.2
    
(18.6
)
  
1,481.1
  
Earnings (loss) before taxes
    
82.4
    
37.7
    
51.6
    
(68.9
)
  
102.8
  
Tax provision
    
(3.1
)
  
(8.4
)
  
(15.1
)
  
-
    
(26.6
)
Minority interests
    
-
    
-
    
(0.2
)
  
-
    
(0.2
)
Equity in results of affiliates
    
-
    
1.2
    
2.1
    
-
    
3.3
  
Net earnings (loss)
  
$
79.3
 
$
30.5
 
$
38.4
 
$
(68.9
)
$
79.3
 



Page 4 of 7


   
CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Nine Months Ended October 1, 2006
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
 
$
3,835.2
 
$
1,335.2
 
$
(140.7
)
$
5,029.7
 
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
3,329.8
    
1,043.2
    
(140.7
)
  
4,232.3
  
Depreciation and amortization
    
2.5
    
116.6
    
64.9
    
-
    
184.0
  
Property insurance gain
    
-
    
-
    
(76.9
)
  
-
    
(76.9
)
Business consolidation costs
    
-
    
-
    
1.7
    
-
    
1.7
  
Selling, general and administrative
    
45.5
    
109.3
    
55.5
    
-
    
210.3
  
Interest expense
    
21.3
    
38.3
    
38.5
    
-
    
98.1
  
Equity in results of subsidiaries
    
(287.0
)
  
-
    
-
    
287.0
    
-
  
Corporate allocations
    
(57.1
)
  
47.7
    
9.4
    
-
    
-
  
     
(274.8
)
  
3,641.7
    
1,136.3
    
146.3
    
4,649.5
  
Earnings (loss) before taxes
    
274.8
    
193.5
    
198.9
    
(287.0
)
  
380.2
  
Tax provision
    
4.0
    
(52.8
)
  
(63.8
)
  
-
    
(112.6
)
Minority interests
    
-
    
-
    
(0.5
)
  
-
    
(0.5
)
Equity in results of affiliates
    
-
    
3.7
    
8.0
    
-
    
11.7
  
Net earnings (loss)
  
$
278.8
 
$
144.4
 
$
142.6
 
$
(287.0
)
$
278.8
 



   
CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Nine Months Ended October 2, 2005
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
 
$
3,401.5
 
$
1,258.1
 
$
(199.6
)
$
4,460.0
 
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
2,943.3
    
984.9
    
(199.6
)
  
3,728.6
  
Depreciation and amortization
    
2.3
    
97.5
    
61.0
    
-
    
160.8
  
Business consolidation costs
    
-
    
19.3
    
8.8
    
-
    
28.1
  
Selling, general and administrative
    
7.7
    
112.5
    
51.4
    
-
    
171.6
  
Interest expense
    
20.8
    
29.4
    
25.6
    
-
    
75.8
  
Equity in results of subsidiaries
    
(203.0
)
  
-
    
-
    
203.0
    
-
  
Corporate allocations
    
(51.5
)
  
46.2
    
5.3
    
-
    
-
  
     
(223.7
)
  
3,248.2
    
1,137.0
    
3.4
    
4,164.9
  
Earnings (loss) before taxes
    
223.7
    
153.3
    
121.1
    
(203.0
)
  
295.1
  
Tax provision
    
(6.8
)
  
(48.5
)
  
(34.0
)
  
-
    
(89.3
)
Minority interests
    
-
    
-
    
(0.7
)
  
-
    
(0.7
)
Equity in results of affiliates
    
-
    
2.6
    
9.2
    
-
    
11.8
  
Net earnings (loss)
  
$
216.9
 
$
107.4
 
$
95.6
 
$
(203.0
)
$
216.9
 



Page 5 of 7
 

   
CONSOLIDATED STATEMENT OF CASH FLOWS
  
   
For the Nine Months Ended October 1, 2006
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Cash flows from operating activities
                                
Net earnings (loss)
  
$
278.8
 
$
144.4
 
$
142.6
 
$
(287.0
)
$
278.8
 
Adjustments to reconcile net earnings to net cash provided by operating activities:
                               
Depreciation and amortization
    
2.5
    
116.6
    
64.9
    
-
    
184.0
  
Property insurance gain
    
–
    
–
    
(76.9
)
  
–
    
(76.9
)
Business consolidation costs
    
–
    
–
    
1.7
    
–
    
1.7
  
Deferred taxes
    
(3.1
)
  
4.7
    
24.5
    
-
    
26.1
  
Equity in results of subsidiaries
    
(287.0
)
  
–
    
–
    
287.0
    
–
  
Other, net
    
17.2
    
(35.0
)
  
(23.2
)
  
-
    
(41.0
)
Changes in working capital components, excluding effects of acquisitions
    
(23.4
)
  
(18.2
)
  
(215.0
)
  
-
    
(256.6
)
Net cash provided by (used in) operating activities
    
(15.0
)
  
212.5
    
(81.4
)
  
-
    
116.1
  
                                 
Cash flows from investing activities
                                
Additions to property, plant and equipment
    
(2.2
)
  
(143.3
)
  
(42.1
)
  
-
    
(187.6
)
Business acquisitions, net of cash acquired
    
–
    
(730.8
)
  
(55.6
)
  
–
    
(786.4
)
Property insurance proceeds
    
–
    
–
    
32.4
    
–
    
32.4
  
Investments in and advances to affiliates, net of dividends
    
(896.8
)
  
668.2
    
228.6
    
-
    
–
  
Other, net
    
(3.5
)
  
6.2
    
7.0
    
-
    
9.7
  
Net cash provided by (used in) investing activities
    
(902.5
)
  
(199.7
)
  
170.3
    
-
    
(931.9
)
                                 
Cash flows from financing activities
                                
Long-term borrowings
    
984.1
    
–
    
–
    
–
    
984.1
  
Repayments of long-term borrowings
    
–
    
(3.0
)
  
(97.9
)
  
-
    
(100.9
)
Change in short-term borrowings
    
2.3
    
-
    
4.7
    
-
    
7.0
  
Proceeds from issuance of common stock
   
27.9
    
-
    
-
    
-
    
27.9
  
Acquisitions of treasury stock
    
(72.6
)
  
–
    
-
    
-
    
(72.6
)
Common dividends
    
(30.7
)
  
–
    
–
    
–
    
(30.7
)
Other, net
    
5.9
    
(8.0
)
  
–
    
-
    
(2.1
)
Net cash provided by (used in) financing activities
    
916.9
    
(11.0
)
  
(93.2
)
  
-
    
812.7
  
                                 
Effect of exchange rate changes on cash
    
–
    
–
    
1.2
    
-
    
1.2
  
                                 
Net change in cash and cash equivalents
    
(0.6
)
  
1.8
    
(3.1
)
  
-
    
(1.9
)
Cash and cash equivalents - Beginning of period
   
8.0
    
1.7
    
51.3
    
-
    
61.0
  
Cash and cash equivalents - End of period
  
$
7.4
 
$
3.5
 
$
48.2
 
$
-
 
$
59.1
 

Page 6 of 7


   
CONSOLIDATED STATEMENT OF CASH FLOWS
  
   
For the Nine Months Ended October 2, 2005
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Cash flows from operating activities
                                
Net earnings (loss)
  
$
216.9
 
$
107.4
 
$
95.6
 
$
(203.0
)
$
216.9
 
Adjustments to reconcile net earnings to net cash provided by operating activities:
                               
Depreciation and amortization
    
2.3
    
97.5
    
61.0
    
-
    
160.8
  
Business consolidation costs
    
-
    
19.3
    
8.8
    
-
    
28.1
  
Deferred taxes
    
(7.5
)
  
(21.7
)
  
(29.9
)
  
-
    
(59.1
)
Equity in results of subsidiaries
    
(203.0
)
  
-
    
-
    
203.0
    
-
  
Other, net
    
11.1
    
(4.9
)
  
(3.2
)
  
-
    
3.0
  
Changes in other working capital components
    
(39.6
)
  
53.6
    
(78.9
)
  
-
    
(64.9
)
Net cash provided by (used in) operating activities
    
(19.8
)
  
251.2
    
53.4
    
-
    
284.8
  
                                 
Cash flows from investing activities
                                
Additions to property, plant and equipment
    
(4.2
)
  
(109.2
)
  
(80.8
)
  
-
    
(194.2
)
Investments in and advances to affiliates, net of dividends
    
108.6
    
(141.2
)
  
32.6
    
-
    
-
  
Other, net
    
(11.1
)
  
2.4
    
(0.5
)
  
-
    
(9.2
)
Net cash provided by (used in) investing activities
    
93.3
    
(248.0
)
  
(48.7
)
  
-
    
(203.4
)
                                 
Cash flows from financing activities
                                
Long-term borrowings
    
155.0
    
0.4
    
-
    
-
    
155.4
  
Repayments of long-term borrowings
    
(40.6
)
  
(3.0
)
  
(46.1
)
  
-
    
(89.7
)
Change in short-term borrowings
    
52.0
    
-
    
37.2
    
-
    
89.2
  
Proceeds from issuance of common stock
    
28.2
    
-
    
-
    
-
    
28.2
  
Acquisitions of treasury stock
    
(338.6
)
  
-
    
-
    
-
    
(338.6
)
Common dividends
    
(32.3
)
  
-
    
-
    
-
    
(32.3
)
Net cash used in financing activities
    
(176.3
)
  
(2.6
)
  
(8.9
)
  
-
    
(187.8
)
                                 
Effect of exchange rate changes on cash
    
-
    
-
    
(1.9
)
  
-
    
(1.9
)
                                 
Net change in cash and cash equivalents
    
(102.8
)
  
0.6
    
(6.1
)
  
-
    
(108.3
)
Cash and cash equivalents - Beginning of period
   
113.8
    
0.6
    
84.3
    
-
    
198.7
  
Cash and cash equivalents - End of period
  
$
11.0
 
$
1.2
 
$
78.2
 
$
-
 
$
90.4
 


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