Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

May 7, 2008

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 March 30, 2008, and December 31, 2007, and for the three months ended March 30, 2008, and April 1, 2007. 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, CONSOLIDATING STATEMENT OF EARNINGS
 
   
For the Three Months Ended March 30, 2008
 
   
Ball
   
Guarantor
   
Non-Guarantor
   
Eliminating
   
Consolidated
 
($ in millions)
 
Corporation
   
Subsidiaries
   
Subsidiaries
   
Adjustments
   
Total
 
                               
Net sales
  $     $ 1,246.2     $ 515.9     $ (21.9 )   $ 1,740.2  
Costs and expenses
                                       
Cost of sales (excluding depreciation and amortization)
          1,052.9       406.7       (21.9 )     1,437.7  
Depreciation and amortization
    0.8       46.0       27.8             74.6  
Gain on sale of subsidiary
          (7.1 )                 (7.1 )
Selling, general and administrative
    11.4       48.7       21.5             81.6  
Equity in results of subsidiaries
    (87.0 )                 87.0        
Intercompany license fees
    (16.7 )     15.9       0.8              
      (91.5 )     1,156.4       456.8       65.1       1,586.8  
                                         
Earnings (loss) before interest and taxes
    91.5       89.8       59.1       (87.0 )     153.4  
Interest expense
    (12.5 )     (10.6 )     (13.1 )           (36.2 )
Earnings (loss) before taxes
    79.0       79.2       46.0       (87.0 )     117.2  
Tax provision
    4.8       (31.5 )     (10.5 )           (37.2 )
Minority interests
                (0.1 )           (0.1 )
Equity in results of affiliates
          0.4       3.5             3.9  
Net earnings (loss)
  $ 83.8     $ 48.1     $ 38.9     $ (87.0 )   $ 83.8  

 
 

 
   
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  
Equity in results of subsidiaries
    (84.1 )                 84.1        
Intercompany license fees
    (15.9 )     15.7       0.2              
      (86.9 )     1,191.4       382.9       54.1       1,541.5  
                                         
Earnings (loss) before interest and taxes     86.9        100.5        49.4        (84.1  )     152.7   
Interest expense
    (10.0  )     (13.7  )     (14.2  )           (37.9  )
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  


 
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UNAUDITED CONDENSED, CONSOLIDATING BALANCE SHEET
 
   
March 30, 2008
 
($ in millions)
 
Ball
   
Guarantor
   
Non-Guarantor
   
Eliminating
   
Consolidated
 
   
Corporation
   
Subsidiaries
   
Subsidiaries
   
Adjustments
   
Total
 
ASSETS
                             
Current assets
                             
Cash and cash equivalents
  $ 17.1     $     $ 72.8     $     $ 89.9  
Receivables, net
    0.5       136.6       538.0             675.1  
Inventories, net
          771.9       362.1             1,134.0  
Deferred taxes and other current assets
    4.0       109.5       42.7             156.2  
Total current assets
    21.6       1,018.0       1,015.6             2,055.2  
                                         
Property, plant and equipment, net
    24.4       1,048.4       927.1             1,999.9  
Investment in subsidiaries
    2,437.0       413.9       81.0       (2,931.9 )      
Goodwill
          740.8       1,211.8             1,952.6  
Intangibles and other assets, net
    102.4       174.8       161.3             438.5  
Total assets
  $ 2,585.4     $ 3,395.9     $ 3,396.8     $ (2,931.9 )   $ 6,446.2  
                                         
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Current liabilities
                                       
Short-term debt and current portion of long-term debt
  $ 54.8     $ 2.2     $ 252.1     $     $ 309.1  
Accounts payable
    48.4       376.4       309.9             734.7  
Accrued employee costs
    15.1       115.2       62.3             192.6  
Income taxes payable
    11.1       23.5       (0.7 )           33.9  
Other current liabilities
    36.9       127.4       61.2             225.5  
Total current liabilities
    166.3       644.7       684.8             1,495.8  
                                         
Long-term debt
    1,684.8       7.7       758.0             2,450.5  
Intercompany borrowings
    (825.0 )     640.4       184.6              
Employee benefit obligations
    164.3       227.4       402.9             794.6  
Deferred taxes and other liabilities
    (62.3 )     148.7       160.4             246.8  
Total liabilities
    1,128.1       1,668.9       2,190.7             4,987.7  
                                         
Minority interests
                1.2             1.2  
Shareholders’ equity
                                       
Convertible preferred stock
                4.8       (4.8 )      
Preferred shareholders’ equity
                4.8       (4.8 )      
                                         
Common stock
    767.4       819.7       611.4       (1,431.1 )     767.4  
Retained earnings
    1,839.1       990.2       274.5       (1,264.7 )     1,839.1  
Accumulated other comprehensive earnings (loss)
    236.4       (82.9 )     314.2       (231.3 )     236.4  
Treasury stock, at cost
    (1,385.6 )                       (1,385.6 )
Common shareholders’ equity
    1,457.3       1,727.0       1,200.1       (2,927.1 )     1,457.3  
Total shareholders’ equity
    1,457.3       1,727.0       1,204.9       (2,931.9 )     1,457.3  
Total liabilities and shareholders’ equity
  $ 2,585.4     $ 3,395.9     $ 3,396.8     $ (2,931.9 )   $ 6,446.2  


 
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CONDENSED, CONSOLIDATING BALANCE SHEET
 
   
December 31, 2007
 
($ in millions)
 
Ball
   
Guarantor
   
Non-Guarantor
   
Eliminating
   
Consolidated
 
   
Corporation
   
Subsidiaries
   
Subsidiaries
   
Adjustments
   
Total
 
ASSETS
                             
Current assets
                             
Cash and cash equivalents
  $ 70.1     $ 1.9     $ 79.6     $     $ 151.6  
Receivables, net
    1.1       164.9       416.7             582.7  
Inventories, net
          719.9       278.2             998.1  
Deferred taxes and other current assets
    25.8       53.5       31.2             110.5  
Total current assets
    97.0       940.2       805.7             1,842.9  
                                         
Property, plant and equipment, net
    24.4       1,047.5       869.3             1,941.2  
Investment in subsidiaries
    2,274.7       413.7       81.0       (2,769.4 )      
Goodwill
          740.8       1,122.3             1,863.1  
Intangibles and other assets, net
    98.0       142.8       132.6             373.4  
Total assets
  $ 2,494.1     $ 3,285.0     $ 3,010.9     $ (2,769.4 )   $ 6,020.6  
                                         
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Current liabilities
                                       
Short-term debt and current portion of long-term debt
  $ 50.5     $ 2.5     $ 123.8     $     $ 176.8  
Accounts payable
    99.4       387.9       276.3             763.6  
Accrued employee costs
    11.8       160.2       66.0             238.0  
Income taxes payable
    15.5             0.2             15.7  
Other current liabilities
    59.9       186.8       72.3             319.0  
Total current liabilities
    237.1       737.4       538.6             1,513.1  
                                         
Long-term debt
    1,448.4       9.6       723.8             2,181.8  
Intercompany borrowings
    (694.3 )     514.3       180.0              
Employee benefit obligations
    180.9       229.7       388.4             799.0  
Deferred taxes and other liabilities
    (20.5 )     62.7       140.9             183.1  
Total liabilities
    1,151.6       1,553.7       1,971.7             4,677.0  
                                         
Minority interests
                1.1             1.1  
Shareholders’ equity
                                       
Convertible preferred stock
                4.8       (4.8 )      
Preferred shareholders’ equity
                4.8       (4.8 )      
                                         
Common stock
    760.3       819.7       642.8       (1,462.5 )     760.3  
Retained earnings
    1,765.0       998.9       235.7       (1,234.6 )     1,765.0  
Accumulated other comprehensive earnings (loss)
    106.9       (87.3 )     154.8       (67.5 )     106.9  
Treasury stock, at cost
    (1,289.7 )                       (1,289.7 )
Common shareholders’ equity
    1,342.5       1,731.3       1,033.3       (2,764.6 )     1,342.5  
Total shareholders’ equity
    1,342.5       1,731.3       1,038.1       (2,769.4 )     1,342.5  
Total liabilities and shareholders’ equity
  $ 2,494.1     $ 3,285.0     $ 3,010.9     $ (2,769.4 )   $ 6,020.6  


 
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UNAUDITED CONDENSED, CONSOLIDATING STATEMENT OF CASH FLOWS
 
   
For the Three Months Ended March 30, 2008
 
   
Ball
   
Guarantor
   
Non-Guarantor
   
Eliminating
   
Consolidated
 
($ in millions)
 
Corporation
   
Subsidiaries
   
Subsidiaries
   
Adjustments
   
Total
 
                               
Cash flows from operating activities
                             
Net earnings (loss)
  $ 83.8     $ 48.1     $ 38.9     $ (87.0 )   $ 83.8  
Adjustments to reconcile net earnings to cash used in operating activities:
                                       
Depreciation and amortization
    0.8       46.0       27.8             74.6  
Gain on sale of subsidiary
          (7.1 )                 (7.1 )
Deferred taxes
    (0.1 )     2.1       (7.1 )           (5.1 )
Equity earnings of subsidiaries
    (87.0 )                 87.0        
Other, net
    4.9       5.4       (28.4 )           (18.1 )
Working capital changes, net
    (45.9 )     (165.5 )     (131.3 )           (342.7 )
Cash used in operating activities
    (43.5 )     (71.0 )     (100.1 )           (214.6 )
                                         
Cash flows from investing activities
                                       
Additions to property, plant and equipment
    (0.8 )     (40.8 )     (32.9 )           (74.5 )
Proceeds from sale of subsidiary, net
          8.7                   8.7  
Investments in and advances to affiliates
    (111.1 )     103.4       7.7              
Other, net
    (2.8 )           0.5             (2.3 )
Cash provided by (used in) investing activities
    (114.7 )     71.3       (24.7 )           (68.1 )
                                         
Cash flows from financing activities
                                       
Long-term borrowings
    270.0             0.7             270.7  
Repayments of long-term borrowings
    (30.0 )     (2.2 )     (0.1 )           (32.3 )
Change in short-term borrowings
    (0.5 )           114.2             113.7  
Proceeds from issuances of common stock
    6.4                         6.4  
Acquisitions of treasury stock
    (131.5 )                       (131.5 )
Common dividends
    (9.6 )                       (9.6 )
Other, net
    0.4                         0.4  
Cash provided by (used in) financing activities
    105.2       (2.2 )     114.8             217.8  
                                         
Effect of exchange rate changes on cash
                3.2             3.2  
                                         
Change in cash and cash equivalents
    (53.0 )     (1.9 )     (6.8 )           (61.7 )
Cash and cash equivalents - beginning of period
    70.1       1.9       79.6             151.6  
Cash and cash equivalents - end of period
  $ 17.1     $     $ 72.8     $     $ 89.9  


 
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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 used in operating activities:
                                       
Depreciation and amortization
    0.8       42.3       21.9             65.0  
Deferred taxes
    (2.5 )     (1.3 )     (3.7 )           (7.5 )
Equity earnings of subsidiaries
    (84.1 )                 84.1        
Other, net
    4.9       7.8       1.3             14.0  
Working capital changes, excluding effects of acquisitions
    (23.2 )     (120.5 )     (116.7 )           (260.4 )
Cash 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
    (159.8 )     40.1       119.7              
Property insurance proceeds
                48.6             48.6  
Other, net
    (0.6 )     1.5       1.5             2.4  
Cash provided by (used in) investing activities
    (161.4 )     15.7       108.6             (37.1 )
                                         
Cash flows from financing activities
                                       
Long-term borrowings
    215.0             0.6             215.6  
Repayments of long-term borrowings
    (95.0 )     (4.4 )     (4.3 )           (103.7 )
Change in short-term borrowings
    55.7             (28.4 )           27.3  
Proceeds from issuances 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  
Cash provided by (used in) financing activities
    81.0       (4.4 )     (32.1 )           44.5  
                                         
Effect of exchange rate changes on cash
                             
                                         
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  



 
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