Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

May 7, 2009

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 29, 2009, and December 31, 2008, and for the three months ended March 29, 2009, and March 30, 2008. 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.


   
UNAUDITED CONDENSED CONSOLIDATING
STATEMENT OF EARNINGS
 
   
For the Three Months Ended March 29, 2009
 
   
Ball
   
Guarantor
   
Non-Guarantor
   
Eliminating
   
Consolidated
 
($ in millions)
 
Corporation
   
Subsidiaries
   
Subsidiaries
   
Adjustments
   
Total
 
                               
Net sales
  $     $ 1,148.7     $ 436.9     $     $ 1,585.6  
                                         
Costs and expenses
                                       
Cost of sales (excluding depreciation and amortization)
          952.9       359.6             1,312.5  
Depreciation and amortization
    0.8       41.1       24.8             66.7  
Selling, general and administrative
    9.8       45.1       20.3             75.2  
Business consolidation costs
          5.0                   5.0  
Equity in results of subsidiaries
    (68.4 )                 68.4        
Intercompany license fees
    (17.9 )     17.3       0.6              
      (75.7 )     1,061.4       405.3       68.4       1,459.4  
                                         
Earnings (loss) before interest and taxes
    75.7       87.3       31.6       (68.4 )     126.2  
Interest expense
    (6.6 )     (11.2 )     (8.0 )           (25.8 )
Earnings (loss) before taxes
    69.1       76.1       23.6       (68.4 )     100.4  
Tax provision
    0.5       (26.6 )     (2.0 )           (28.1 )
Equity in results of affiliates
          0.4       (3.1 )           (2.7 )
Net earnings (loss)
    69.6       49.9       18.5       (68.4 )     69.6  
Less net earnings attributable to noncontrolling interests
                (0.1 )           (0.1 )
Net earnings (loss) attributable to Ball Corporation
  $ 69.6     $ 49.9     $ 18.4     $ (68.4 )   $ 69.5  


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  
Selling, general and administrative
    11.4       48.7       21.5             81.6  
Gain on sale of subsidiary
          (7.1 )                 (7.1 )
Equity in results of subsidiaries
    (87.1 )                 87.1        
Intercompany license fees
    (16.7 )     15.9       0.8              
      (91.6 )     1,156.4       456.8       65.2       1,586.8  
                                         
Earnings (loss) before interest and taxes
    91.6       89.8       59.1       (87.1 )     153.4  
Interest expense
    (12.5 )     (10.6 )     (13.1 )           (36.2 )
Earnings (loss) before taxes
    79.1       79.2       46.0       (87.1 )     117.2  
Tax provision
    4.8       (31.5 )     (10.5 )           (37.2 )
Equity in results of affiliates
          0.4       3.5             3.9  
Net earnings (loss)
    83.9       48.1       39.0       (87.1 )     83.9  
Less net earnings attributable to noncontrolling interests
                (0.1 )           (0.1 )
Net earnings (loss) attributable to Ball Corporation
  $ 83.9     $ 48.1     $ 38.9     $ (87.1 )   $ 83.8  


Page 2 of 6

 
 

 


   
UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
 
   
March 29, 2009
 
   
Ball
   
Guarantor
   
Non-Guarantor
   
Eliminating
   
Consolidated
 
($ in millions)
 
Corporation
   
Subsidiaries
   
Subsidiaries
   
Adjustments
   
Total
 
ASSETS
                             
Current assets
                             
Cash and cash equivalents
  $ 11.3     $ (0.1 )   $ 41.9     $     $ 53.1  
Receivables, net
    1.6       153.2       536.7             691.5  
Inventories, net
          795.7       287.5             1,083.2  
Cash collateral – receivable
          100.6       81.3             181.9  
Current derivative contracts
    3.4       182.3       19.4             205.1  
Current deferred taxes and other current assets
    (0.7 )     71.3       41.0             111.6  
Total current assets
    15.6       1,303.0       1,007.8             2,326.4  
                                         
Property, plant and equipment, net
    22.6       995.5       795.7             1,813.8  
Investment in subsidiaries
    2,305.3       289.7       81.0       (2,676.0 )      
Goodwill
          740.2       1,037.3             1,777.5  
Noncurrent derivative contracts
    0.2       128.5       8.5             137.2  
Intangibles and other assets, net
    149.9       105.1       114.7             369.7  
Total assets
  $ 2,493.6     $ 3,562.0     $ 3,045.0     $ (2,676.0 )   $ 6,424.6  
                                         
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Current liabilities
                                       
Short-term debt and current portion of long-term debt
  $ 62.5     $ 1.9     $ 237.9     $     $ 302.3  
Accounts payable
    54.2       391.1       236.2             681.5  
Accrued employee costs
    13.3       130.4       51.2             194.9  
Income taxes payable and current deferred taxes
    18.8       14.4       (2.5 )           30.7  
Cash collateral – liability
          98.1                   98.1  
Current derivative contracts
    1.3       131.4       86.2             218.9  
Other current liabilities
    33.2       98.8       39.2             171.2  
Total current liabilities
    183.3       866.1       648.2             1,697.6  
                                         
Long-term debt
    1,575.1       5.8       776.2             2,357.1  
Intercompany borrowings
    (562.7 )     365.8       196.9              
Employee benefit obligations
    176.7       433.8       339.4             949.9  
Noncurrent derivative contracts
          128.4       63.2             191.6  
Deferred taxes and other liabilities
    10.9       15.5       90.0             116.4  
Total liabilities
    1,383.3       1,815.4       2,113.9             5,312.6  
                                         
Shareholders’ equity
                                       
Convertible preferred stock
                4.8       (4.8 )      
Preferred shareholders’ equity
                4.8       (4.8 )      
                                         
Common stock
    795.6       819.5       487.0       (1,306.5 )     795.6  
Retained earnings
    2,107.1       1,134.6       432.0       (1,566.6 )     2,107.1  
Accumulated other comprehensive earnings (loss)
    (232.0 )     (207.5 )     5.6       201.9       (232.0 )
Treasury stock, at cost
    (1,560.4 )                       (1,560.4 )
Common shareholders’ equity
    1,110.3       1,746.6       924.6       (2,671.2 )     1,110.3  
Total Ball Corporation shareholders’ equity
    1,110.3       1,746.6       929.4       (2,676.0 )     1,110.3  
Noncontrolling interests
                1.7             1.7  
Total shareholders’ equity
    1,110.3       1,746.6       931.1       (2,676.0 )     1,112.0  
Total liabilities and shareholders’ equity
  $ 2,493.6     $ 3,562.0     $ 3,045.0     $ (2,676.0 )   $ 6,424.6  


Page 3 of 6

 
 

 


   
CONDENSED CONSOLIDATING BALANCE SHEET
 
   
December 31, 2008
 
   
Ball
   
Guarantor
   
Non-Guarantor
   
Eliminating
   
Consolidated
 
($ in millions)
 
Corporation
   
Subsidiaries
   
Subsidiaries
   
Adjustments
   
Total
 
ASSETS
                             
Current assets
                             
Cash and cash equivalents
  $ 90.2     $ (0.1 )   $ 37.3     $     $ 127.4  
Receivables, net
    0.5       145.7       361.7             507.9  
Inventories, net
          677.5       296.7             974.2  
Cash collateral – receivable
          123.2       106.3             229.5  
Current derivative contracts
    4.8       176.6       15.6             197.0  
Current deferred taxes and other current assets
    (1.1 )     79.7       50.7             129.3  
Total current assets
    94.4       1,202.6       868.3             2,165.3  
                                         
Property, plant and equipment, net
    23.2       1,012.8       830.9             1,866.9  
Investment in subsidiaries
    2,286.1       289.7       81.0       (2,656.8 )      
Goodwill
          740.2       1,085.3             1,825.5  
Noncurrent derivative contracts
    0.2       131.5       7.3             139.0  
Intangibles and other assets, net
    150.3       102.6       119.1             372.0  
Total assets
  $ 2,554.2     $ 3,479.4     $ 2,991.9     $ (2,656.8 )   $ 6,368.7  
                                         
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Current liabilities
                                       
Short-term debt and current portion of long-term debt
  $ 62.5     $ 1.8     $ 238.7     $     $ 303.0  
Accounts payable
    50.8       422.7       290.2             763.7  
Accrued employee costs
    3.7       175.0       54.0             232.7  
Income taxes payable and current deferred taxes
    21.5       (5.8 )     (6.8 )           8.9  
Cash collateral – liability
          124.0                   124.0  
Current derivative contracts
    2.9       162.9       102.6             268.4  
Other current liabilities
    27.1       102.0       32.6             161.7  
Total current liabilities
    168.5       982.6       711.3             1,862.4  
                                         
Long-term debt
    1,340.5       7.7       758.9             2,107.1  
Intercompany borrowings
    (245.3 )     217.7       27.6              
Employee benefit obligations
    193.8       430.0       357.6             981.4  
Noncurrent derivative contracts
    0.3       131.7       57.7             189.7  
Deferred taxes and other liabilities
    10.6       15.7       114.5             140.8  
Total liabilities
    1,468.4       1,785.4       2,027.6             5,281.4  
                                         
Shareholders’ equity
                                       
Convertible preferred stock
                4.8       (4.8 )      
Preferred shareholders’ equity
                4.8       (4.8 )      
                                         
Common stock
    788.0       820.9       485.5       (1,306.4 )     788.0  
Retained earnings
    2,047.1       1,084.7       413.7       (1,498.4 )     2,047.1  
Accumulated other comprehensive earnings (loss)
    (182.5 )     (211.6 )     58.8       152.8       (182.5 )
Treasury stock, at cost
    (1,566.8 )                       (1,566.8 )
Common shareholders’ equity
    1,085.8       1,694.0       958.0       (2,652.0 )     1,085.8  
Total Ball Corporation shareholders’ equity
    1,085.8       1,694.0       962.8       (2,656.8 )     1,085.8  
Noncontrolling interests
                1.5             1.5  
Total shareholders’ equity
    1,085.8       1,694.0       964.3       (2,656.8 )     1,087.3  
Total liabilities and shareholders’ equity
  $ 2,554.2     $ 3,479.4     $ 2,991.9     $ (2,656.8 )   $ 6,368.7  


Page 4 of 6

 
 

 


   
UNAUDITED CONDENSED CONSOLIDATING
STATEMENT OF CASH FLOWS
 
   
For the Three Months Ended March 29, 2009
 
   
Ball
   
Guarantor
   
Non-Guarantor
   
Eliminating
   
Consolidated
 
($ in millions)
 
Corporation
   
Subsidiaries
   
Subsidiaries
   
Adjustments
   
Total
 
                               
Cash flows from operating activities
                             
Net earnings (loss)
  $ 69.6     $ 49.9     $ 18.5     $ (68.4 )   $ 69.6  
Adjustments to reconcile net earnings to cash used in operating activities:
                                       
Depreciation and amortization
    0.8       41.1       24.8             66.7  
Business consolidation costs
          5.0                   5.0  
Deferred taxes
    0.5       5.8       (10.8 )           (4.5 )
Equity earnings of subsidiaries
    (68.4 )                 68.4        
Other, net
    9.1       6.1       (7.8 )           7.4  
Working capital changes, net
    (5.8 )     (221.0 )     (225.2 )           (452.0 )
Cash provided by (used in) operating activities
    5.8       (113.1 )     (200.5 )           (307.8 )
                                         
Cash flows from investing activities
                                       
Additions to property, plant and equipment
    (0.3 )     (26.4 )     (41.1 )           (67.8 )
Cash collateral, net
          (3.3 )     25.0             21.7  
Investments in and advances to affiliates
    (318.3 )     146.8       171.5              
Other, net
    1.2       (2.1 )     (0.2 )           (1.1 )
Cash provided by (used in) investing activities
    (317.4 )     115.0       155.2             (47.2 )
                                         
Cash flows from financing activities
                                       
Long-term borrowings
    310.4             83.9             394.3  
Repayments of long-term borrowings
    (75.7 )     (1.9 )     (39.1 )           (116.7 )
Change in short-term borrowings
                8.3             8.3  
Proceeds from issuances of common stock
    6.0                         6.0  
Acquisitions of treasury stock
    (1.1 )                       (1.1 )
Common dividends
    (9.3 )                       (9.3 )
Other, net
    2.4                         2.4  
Cash provided by (used in) financing activities
    232.7       (1.9 )     53.1             283.9  
                                         
Effect of exchange rate changes on cash
                (3.2 )           (3.2 )
                                         
Change in cash and cash equivalents
    (78.9 )           4.6             (74.3 )
Cash and cash equivalents – beginning of period
    90.2       (0.1 )     37.3             127.4  
Cash and cash equivalents – end of period
  $ 11.3     $ (0.1 )   $ 41.9     $     $ 53.1  


Page 5 of 6

 
 

 


   
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)
  $ 83.9     $ 48.1     $ 39.0     $ (87.1 )   $ 83.9  
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 )
Legal settlement
          (70.3 )                 (70.3 )
Deferred taxes
    (0.1 )     2.1       (7.1 )           (5.1 )
Equity earnings of subsidiaries
    (87.1 )                 87.1        
Other, net
    4.9       5.4       (28.5 )           (18.2 )
Working capital changes, net
    (45.9 )     (95.2 )     (131.3 )           (272.4 )
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  



Page 6 of 6