Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

May 9, 2007

Documents

Exhibit 20


Subsidiary Guarantees of Debt

The company’s notes payable 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 senior credit facilities are secured by: (1) a pledge of 100 percent of the stock owned by the company in its material direct and indirect majority-owned domestic subsidiaries and (2) a pledge of the company’s stock, owned directly or indirectly, of certain foreign subsidiaries, which equals 65 percent of the stock of each foreign subsidiary.

The following is unaudited condensed, consolidating financial information for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of April 1, 2007, and December 31, 2006, and for the three months ended April 1, 2007, and April 2, 2006. Certain prior year amounts have been reclassified in order to conform to the current year presentation. Prior year amounts have also been retrospectively adjusted to reflect the company’s fourth quarter 2006 change in accounting for certain inventories from LIFO to FIFO (as discussed in Note 7 to the company’s consolidated financial statements). 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


   
UNAUDITED CONDENSED, CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Three Months Ended April 1, 2007
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Net sales
  
$
-
 
$
1,291.9
 
$
432.3
 
$
(30.0
)
$
1,694.2
 
Costs and expenses
                                
Cost of sales (excluding depreciation and amortization)
    
-
    
1,088.1
    
336.2
    
(30.0
)
  
1,394.3
  
Depreciation and amortization
    
0.8
    
42.3
    
21.9
    
-
    
65.0
  
Selling, general and administrative
    
12.3
    
45.3
    
24.6
    
-
    
82.2
  
Interest expense
    
10.0
    
13.7
    
14.2
    
-
    
37.9
  
Equity in results of subsidiaries
    
(84.1
)
  
-
    
-
    
84.1
    
-
  
Corporate allocations
    
(15.9
)
  
15.7
    
0.2
    
-
    
-
  
     
(76.9
)
  
1,205.1
    
397.1
    
54.1
    
1,579.4
  
Earnings (loss) before taxes
    
76.9
    
86.8
    
35.2
    
(84.1
)
  
114.8
  
Tax provision
    
4.3
    
(27.2
)
  
(13.8
)
  
-
    
(36.7
)
Minority interests
    
-
    
-
    
(0.1
)
  
-
    
(0.1
)
Equity in results of affiliates
    
-
    
0.6
    
2.6
    
-
    
3.2
  
Net earnings (loss)
  
$
81.2
 
$
60.2
 
$
23.9
 
$
(84.1
)
$
81.2
 



   
UNAUDITED CONDENSED, CONSOLIDATED STATEMENT OF EARNINGS
  
   
For the Three Months Ended April 2, 2006
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
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)
    
–
    
926.0
    
268.5
    
(37.8
)
  
1,156.7
  
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
    
22.9
    
–
    
70.3
  
Interest expense
    
7.8
    
4.3
    
11.2
    
–
    
23.3
  
Equity in results of subsidiaries
    
(51.3
)
  
-
    
-
    
51.3
    
–
  
Corporate allocations
    
(16.6
)
  
14.7
    
1.9
    
–
    
–
  
     
(39.9
)
  
1,006.2
    
327.2
    
13.5
    
1,307.0
  
Earnings (loss) before taxes
    
39.9
    
57.2
    
12.1
    
(51.3
)
  
57.9
  
Tax provision
    
4.5
    
(19.2
)
  
(1.8
)
  
–
    
(16.5
)
Minority interests
    
–
    
–
    
(0.2
)
  
–
    
(0.2
)
Equity in results of affiliates
    
–
    
0.7
    
2.5
    
–
    
3.2
  
Net earnings (loss)
  
$
44.4
 
$
38.7
 
$
12.6
 
$
(51.3
)
$
44.4
 
 

 
Page 2 of 6
   
UNAUDITED CONDENSED, CONSOLIDATING BALANCE SHEET
  
   
April 1, 2007
  
($ in millions)
  
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
ASSETS
                                
Current assets
                                
Cash and cash equivalents
  
$
7.0
 
$
2.1
 
$
42.1
 
$
–
  
$
51.2
  
Receivables, net
    
0.4
    
220.9
    
477.3
    
–
    
698.6
  
Inventories, net
    
–
    
756.2
    
262.5
    
–
    
1,018.7
  
Deferred taxes and prepaid expenses
    
4.1
    
44.1
    
42.5
    
–
    
90.7
  
Total current assets
    
11.5
    
1,023.3
    
824.4
    
–
    
1,859.2
  
                                 
Property, plant and equipment, at cost
    
44.3
    
2,477.7
    
1,226.5
    
–
    
3,748.5
  
Accumulated depreciation
    
(16.8
)
  
(1,404.4
)
  
(438.1
)
  
–
    
(1,859.3
)
Total property, plant and equipment, net
    
27.5
    
1,073.3
    
788.4
    
–
    
1,889.2
  
                                 
Investment in subsidiaries
    
1,946.4
    
444.4
    
81.0
    
(2,471.8
)
  
–
  
Investment in affiliates
    
1.3
    
24.2
    
54.6
    
–
    
80.1
  
Goodwill
    
–
    
750.0
    
1,020.4
    
–
    
1,770.4
  
Intangibles and other assets, net
    
115.1
    
120.6
    
83.4
    
–
    
319.1
  
   
$
2,101.8
 
$
3,435.8
 
$
2,852.2
 
$
(2,471.8
)
$
5,918.0
  
                                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                
Current liabilities
                                
Short-term debt and current portion of long-term debt
  
$
80.0
 
$
10.2
 
$
148.0
 
$
–
  
$
238.2
  
Accounts payable
   
34.7
    
389.2
    
244.5
    
–
    
668.4
  
Accrued employee costs
    
13.0
    
109.0
    
53.8
    
–
    
175.8
  
Income taxes payable
    
20.2
    
–
    
11.3
    
–
    
31.5
  
Other current liabilities
    
43.6
    
81.6
    
94.9
    
–
    
220.1
  
Total current liabilities
    
191.5
    
590.0
    
552.5
    
–
    
1,334.0
  
                                 
Long-term debt
    
1,606.3
    
10.1
    
744.3
    
–
    
2,360.7
  
Intercompany borrowings
    
(1,219.5
)
  
1,042.1
    
177.4
    
–
    
-
  
Employee benefit obligations
    
162.4
    
285.1
    
399.3
    
–
    
846.8
  
Deferred taxes and other liabilities
    
145.7
    
(120.7
)
  
135.0
    
–
    
160.0
  
Total liabilities
    
886.4
    
1,806.6
    
2,008.5
    
–
    
4,701.5
  
                                 
Minority interests
    
–
    
–
    
1.1
    
–
    
1.1
  
Shareholders’ equity
                                
Convertible preferred stock
    
–
    
–
    
179.6
    
(179.6
)
  
–
  
Preferred shareholders’ equity
    
–
    
–
    
179.6
    
(179.6
)
  
–
  
                                 
Common stock
    
724.8
    
819.7
    
495.4
    
(1,315.1
)
  
724.8
  
Retained earnings
    
1,594.7
    
922.7
    
70.6
    
(993.3
)
  
1,594.7
  
Accumulated other comprehensive earnings (loss)
    
(14.9
)
  
(113.2
)
  
97.0
    
16.2
    
(14.9
)
Treasury stock, at cost
    
(1,089.2
)
  
–
    
–
    
–
    
(1,089.2
)
Common shareholders’ equity
    
1,215.4
    
1,629.2
    
663.0
    
(2,292.2
)
  
1,215.4
  
Total shareholders’ equity
    
1,215.4
    
1,629.2
    
842.6
    
(2,471.8
)
  
1,215.4
  
   
$
2,101.8
 
$
3,435.8
 
$
2,852.2
 
$
(2,471.8
)
$
5,918.0
  


Page 3 of 6

   
UNAUDITED CONDENSED, CONSOLIDATING BALANCE SHEET
  
   
December 31, 2006
  
($ in millions)
  
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
   
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
ASSETS
                                
Current assets
                                
Cash and cash equivalents
  
$
110.3
 
$
2.3
 
$
38.9
 
$
–
  
$
151.5
  
Receivables, net
    
(0.3
)
  
238.3
    
341.5
    
–
    
579.5
  
Inventories, net
    
–
    
671.2
    
264.2
    
–
    
935.4
  
Deferred taxes and prepaid expenses
    
15.8
    
36.3
    
42.8
    
–
    
94.9
  
Total current assets
    
125.8
    
948.1
    
687.4
    
–
    
1,761.3
  
                                 
Property, plant and equipment, at cost
    
43.2
    
2,468.7
    
1,174.4
    
–
    
3,686.3
  
Accumulated depreciation
    
(16.0
)
  
(1,375.5
)
  
(418.8
)
  
–
    
(1,810.3
)
Total property, plant and equipment, net
    
27.2
    
1,093.2
    
755.6
    
–
    
1,876.0
  
                                 
Investment in subsidiaries
    
1,855.2
    
438.3
    
81.1
    
(2,374.6
)
  
–
  
Investment in affiliates
    
1.4
    
23.2
    
51.9
    
–
    
76.5
  
Goodwill
    
–
    
754.4
    
1,019.3
    
–
    
1,773.7
  
Intangibles and other assets, net
    
101.0
    
118.0
    
134.4
    
–
    
353.4
  
   
$
2,110.6
 
$
3,375.2
 
$
2,729.7
 
$
(2,374.6
)
$
5,840.9
  
                                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                
Current liabilities
                                
Short-term debt and current portion of long-term debt
  
$
12.5
 
$
11.2
 
$
157.6
 
$
–
  
$
181.3
  
Accounts payable
   
98.3
    
404.1
    
230.0
    
–
    
732.4
  
Accrued employee costs
    
9.5
    
137.1
    
54.5
    
–
    
201.1
  
Income taxes payable
    
19.2
    
–
    
52.6
    
–
    
71.8
  
Other current liabilities
    
79.1
    
91.2
    
97.4
    
–
    
267.7
  
Total current liabilities
    
218.6
    
643.6
    
592.1
    
–
    
1,454.3
  
                                 
Long-term debt
    
1,498.9
    
13.6
    
757.9
    
–
    
2,270.4
  
Intercompany borrowings
    
(1,069.6
)
  
1,012.7
    
56.9
    
–
    
-
  
Employee benefit obligations
    
173.9
    
272.8
    
401.0
    
–
    
847.7
  
Deferred taxes and other liabilities
    
123.4
    
(121.8
)
  
100.5
    
–
    
102.1
  
Total liabilities
    
945.2
    
1,820.9
    
1,908.4
    
–
    
4,674.5
  
                                 
Minority interests
    
–
    
–
    
1.0
    
–
    
1.0
  
Shareholders’ equity
                                
Convertible preferred stock
    
–
    
–
    
179.6
    
(179.6
)
  
–
  
Preferred shareholders’ equity
    
–
    
–
    
179.6
    
(179.6
)
  
–
  
                                 
Common stock
    
703.4
    
819.7
    
495.4
    
(1,315.1
)
  
703.4
  
Retained earnings
    
1,535.3
    
861.0
    
48.6
    
(909.6
)
  
1,535.3
  
Accumulated other comprehensive earnings (loss)
    
(29.5
)
  
(126.4
)
  
96.7
    
29.7
    
(29.5
)
Treasury stock, at cost
    
(1,043.8
)
  
–
    
–
    
–
    
(1,043.8
)
Common shareholders’ equity
    
1,165.4
    
1,554.3
    
640.7
    
(2,195.0
)
  
1,165.4
  
Total shareholders’ equity
    
1,165.4
    
1,554.3
    
820.3
    
(2,374.6
)
  
1,165.4
  
   
$
2,110.6
 
$
3,375.2
 
$
2,729.7
 
$
(2,374.6
)
$
5,840.9
  

Page 4 of 6


   
UNAUDITED CONDENSED, CONSOLIDATING
STATEMENT OF CASH FLOWS
  
   
For the Three Months Ended April 1, 2007
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Cash flows from operating activities
                                
Net earnings (loss)
  
$
81.2
 
$
60.2
 
$
23.9
 
$
(84.1
)
$
81.2
 
Adjustments to reconcile net earnings to net cash provided by operating activities:
                               
Depreciation and amortization
    
0.8
    
42.3
    
21.9
    
–
    
65.0
  
Deferred taxes
    
(2.5
)
  
(1.3
)
  
(3.7
)
  
–
    
(7.5
)
Equity in results of subsidiaries
    
(84.1
)
  
–
    
–
    
84.1
    
–
  
Other, net
    
4.9
    
7.8
    
1.3
    
–
    
14.0
  
Changes in working capital components, excluding effects of acquisitions
    
(23.2
)
  
(120.5
)
  
(116.7
)
  
–
    
(260.4
)
Net cash provided by (used in) operating activities
    
(22.9
)
  
(11.5
)
  
(73.3
)
  
–
    
(107.7
)
                                 
Cash flows from investing activities
                                
Additions to property, plant and equipment
    
(1.0
)
  
(25.9
)
  
(61.2
)
  
–
    
(88.1
)
Investments in and advances to affiliates, net of dividends
    
(159.8
)
  
40.1
    
119.7
    
–
    
–
  
Property insurance proceeds
    
–
    
–
    
48.6
    
–
    
48.6
  
Other, net
    
(0.6
)
  
1.5
    
1.5
    
–
    
2.4
  
Net cash provided by (used in) investing activities
    
(161.4
)
  
15.7
    
108.6
    
–
    
(37.1
)
                                 
Cash flows from financing activities
                                
Long-term borrowings
    
120.0
    
–
    
0.6
    
–
    
120.6
  
Repayments of long-term borrowings
    
–
    
(4.4
)
  
(4.3
)
  
–
    
(8.7
)
Change in short-term borrowings
    
55.7
    
–
    
(28.4
)
  
–
    
27.3
  
Proceeds from issuance of common stock
    
11.0
    
–
    
–
    
–
    
11.0
  
Acquisitions of treasury stock
    
(98.5
)
  
–
    
–
    
–
    
(98.5
)
Common dividends
    
(10.2
)
  
–
    
–
    
–
    
(10.2
)
Other, net
    
3.0
    
–
    
–
    
–
    
3.0
  
Net cash provided by (used in) financing activities
    
81.0
    
(4.4
)
  
(32.1
)
  
–
    
44.5
  
                                 
Effect of exchange rate changes on cash
    
–
    
–
    
–
    
–
    
–
  
                                 
Net change in cash and cash equivalents
    
(103.3
)
  
(0.2
)
  
3.2
    
–
    
(100.3
)
Cash and cash equivalents - Beginning of period
   
110.3
    
2.3
    
38.9
    
–
    
151.5
  
Cash and cash equivalents - End of period
  
$
7.0
 
$
2.1
 
$
42.1
 
$
–
  
$
51.2
 


Page 5 of 6


   
UNAUDITED CONDENSED, CONSOLIDATING
STATEMENT OF CASH FLOWS
  
   
For the Three Months Ended April 2, 2006
  
   
Ball
  
Guarantor
  
Non-Guarantor
  
Eliminating
  
Consolidated
  
($ in millions)
  
Corporation
  
Subsidiaries
  
Subsidiaries
  
Adjustments
  
Total
  
Cash flows from operating activities
                                
Net earnings (loss)
  
$
44.4
 
$
38.7
 
$
12.6
 
$
(51.3
)
$
44.4
 
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
)
  
(0.6
)
  
(3.8
)
  
–
    
(5.5
)
Equity in results of subsidiaries
    
(51.3
)
  
–
    
–
    
51.3
    
–
  
Other, net
    
3.7
    
(6.1
)
  
(12.2
)
  
–
    
(14.6
)
Changes in working capital components, excluding effects of acquisitions
    
24.5
    
(88.4
)
  
(188.9
)
  
–
    
(252.8
)
Net cash provided by (used in) operating activities
    
21.0
    
(23.2
)
  
(169.6
)
  
–
    
(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
    
(1,009.9
)
  
826.0
    
183.9
    
–
    
–
  
Other, net
    
1.1
    
(0.2
)
  
0.6
    
–
    
1.5
  
Net cash provided by (used in) investing activities
    
(1,009.2
)
  
32.4
    
146.0
    
–
    
(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
 

 
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