EXHIBIT 20
Published on May 10, 2011
Exhibit 20
Subsidiary Guarantees of Debt
The company’s senior notes are guaranteed on a full, unconditional and joint and several basis by certain of the company’s material domestic subsidiaries. These guarantees are required in support of the notes, are co-terminous with the terms of the respective note indentures and would require performance upon certain events of default referred to in the respective guarantees. The maximum potential amounts that could be required to be paid under the domestic guarantees are essentially equal to the then outstanding principal and interest under the respective notes. The following is condensed, consolidating financial information (in millions of dollars) for the company, segregating the guarantor subsidiaries and non-guarantor subsidiaries, as of April 3, 2011, and December 31, 2010, and for the three months ended April 3, 2011, and March 28, 2010. 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 April 3, 2011
|
||||||||||||||||||||
|
Ball
|
Guarantor
|
Non-Guarantor
|
Eliminating
|
Consolidated
|
||||||||||||||||
|
($ in millions)
|
Corporation
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Total
|
|||||||||||||||
|
Net sales
|
$ | – | $ | 1,285.0 | $ | 726.2 | $ | – | $ | 2,011.2 | ||||||||||
|
Costs and expenses
|
||||||||||||||||||||
|
Cost of sales (excluding depreciation)
|
– | (1,070.8 | ) | (559.9 | ) | – | (1,630.7 | ) | ||||||||||||
|
Depreciation and amortization
|
(0.8 | ) | (37.2 | ) | (35.6 | ) | – | (73.6 | ) | |||||||||||
|
Selling, general and administrative
|
(20.2 | ) | (48.3 | ) | (30.9 | ) | – | (99.4 | ) | |||||||||||
|
Business consolidation activities
|
− | (10.9 | ) | (2.6 | ) | – | (13.5 | ) | ||||||||||||
|
Equity in results of subsidiaries
|
107.8 | – | – | (107.8 | ) | – | ||||||||||||||
|
Intercompany license fees
|
34.4 | (31.7 | ) | (2.7 | ) | – | – | |||||||||||||
| 121.2 | (1,198.9 | ) | (631.7 | ) | (107.8 | ) | (1,817.2 | ) | ||||||||||||
|
Earnings (loss) before interest and taxes
|
121.2 | 86.1 | 94.5 | (107.8 | ) | 194.0 | ||||||||||||||
|
Interest expense
|
(40.0 | ) | 1.0 | (7.5 | ) | − | (46.5 | ) | ||||||||||||
|
Earnings (loss) before taxes
|
81.2 | 87.1 | 87.0 | (107.8 | ) | 147.5 | ||||||||||||||
|
Tax provision
|
10.1 | (40.4 | ) | (17.7 | ) | − | (48.0 | ) | ||||||||||||
|
Equity in results of affiliates
|
– | (0.6 | ) | 0.6 | – | − | ||||||||||||||
|
Net earnings (loss) from continuing operations
|
91.3 | 46.1 | 69.9 | (107.8 | ) | 99.5 | ||||||||||||||
|
Discontinued operations, net of tax
|
− | (1.3 | ) | − | – | (1.3 | ) | |||||||||||||
|
Net earnings (loss)
|
91.3 | 44.8 | 69.9 | (107.8 | ) | 98.2 | ||||||||||||||
|
Less net earnings attributable to noncontrolling interests
|
− | − | (6.9 | ) | − | (6.9 | ) | |||||||||||||
|
Net earnings (loss) attributable to Ball Corporation
|
$ | 91.3 | $ | 44.8 | $ | 63.0 | $ | (107.8 | ) | $ | 91.3 | |||||||||
Page 1 of 6
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UNAUDITED CONDENSED CONSOLIDATING
STATEMENT OF EARNINGS
|
||||||||||||||||||||
|
For the Three Months Ended March 28, 2010
|
||||||||||||||||||||
|
Ball
|
Guarantor
|
Non-Guarantor
|
Eliminating
|
Consolidated
|
||||||||||||||||
|
($ in millions)
|
Corporation
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Total
|
|||||||||||||||
|
Net sales
|
$ | –– | $ | 1,122.5 | $ | 469.8 | $ | – | $ | 1,592.3 | ||||||||||
|
Costs and expenses
|
||||||||||||||||||||
|
Cost of sales (excluding depreciation)
|
– | (952.2 | ) | (366.0 | ) | – | (1,318.2 | ) | ||||||||||||
|
Depreciation and amortization
|
(0.8 | ) | (36.9 | ) | (25.0 | ) | – | (62.7 | ) | |||||||||||
|
Selling, general and administrative
|
(11.1 | ) | (44.2 | ) | (24.0 | ) | – | (79.3 | ) | |||||||||||
|
Business consolidation activities
|
− | 0.5 | – | – | 0.5 | |||||||||||||||
|
Equity in results of subsidiaries
|
77.8 | – | – | (77.8 | ) | – | ||||||||||||||
|
Intercompany license fees
|
46.7 | (45.0 | ) | (1.7 | ) | – | – | |||||||||||||
| 112.6 | (1,077.8 | ) | (416.7 | ) | (77.8 | ) | (1,459.7 | ) | ||||||||||||
|
Earnings (loss) before interest and taxes
|
112.6 | 44.7 | 53.1 | (77.8 | ) | 132.6 | ||||||||||||||
|
Interest expense
|
(30.7 | ) | 0.4 | (3.6 | ) | – | (33.9 | ) | ||||||||||||
|
Earnings (loss) before taxes
|
81.9 | 45.1 | 49.5 | (77.8 | ) | 98.7 | ||||||||||||||
|
Tax provision
|
(2.4 | ) | (6.0 | ) | (12.5 | ) | – | (20.9 | ) | |||||||||||
|
Equity in results of affiliates
|
– | − | 4.7 | – | 4.7 | |||||||||||||||
|
Net earnings (loss) from continuing operations
|
79.5 | 39.1 | 41.7 | (77.8 | ) | 82.5 | ||||||||||||||
|
Discontinued operations, net of tax
|
(0.2 | ) | (2.3 | ) | (0.6 | ) | – | (3.1 | ) | |||||||||||
|
Net earnings (loss)
|
79.3 | 36.8 | 41.1 | (77.8 | ) | 79.4 | ||||||||||||||
|
Less net earnings attributable to noncontrolling interests
|
– | – | (0.1 | ) | – | (0.1 | ) | |||||||||||||
|
Net earnings (loss) attributable to Ball Corporation
|
$ | 79.3 | $ | 36.8 | $ | 41.0 | $ | (77.8 | ) | $ | 79.3 | |||||||||
Page 2 of 6
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CONDENSED, CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||
|
April 3, 2011
|
||||||||||||||||||||
|
($ in millions)
|
Ball
|
Guarantor
|
Non-Guarantor
|
Eliminating
|
Consolidated
|
|||||||||||||||
|
Corporation
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Total
|
||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 0.5 | $ | 1.5 | $ | 191.1 | $ | – | $ | 193.1 | ||||||||||
|
Receivables, net
|
(1.2 | ) | 173.2 | 907.6 | – | 1,079.6 | ||||||||||||||
|
Inventories, net
|
– | 828.9 | 416.8 | –– | 1,245.7 | |||||||||||||||
|
Deferred taxes and other current assets
|
11.3 | 106.4 | 78.3 | – | 196.0 | |||||||||||||||
|
Total current assets
|
10.6 | 1,110.0 | 1,593.8 | – | 2,714.4 | |||||||||||||||
|
Property, plant and equipment, net
|
32.3 | 890.9 | 1,293.8 | – | 2,217.0 | |||||||||||||||
|
Investment in subsidiaries
|
3,551.4 | 352.2 | 78.7 | (3,982.3 | ) | – | ||||||||||||||
|
Goodwill
|
– | 927.0 | 1,393.2 | – | 2,320.2 | |||||||||||||||
|
Intangibles and other assets, net
|
182.3 | 110.9 | 238.2 | – | 531.4 | |||||||||||||||
|
Total Assets
|
$ | 3,776.6 | $ | 3,391.0 | $ | 4,597.7 | $ | (3,982.3 | ) | $ | 7,783.0 | |||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Short-term debt and current portion of long-term debt
|
$ | 16.9 | $ | 0.2 | $ | 302.9 | $ | – | $ | 320.0 | ||||||||||
|
Accounts payable
|
39.9 | 404.8 | 409.3 | – | 854.0 | |||||||||||||||
|
Accrued employee costs
|
27.9 | 106.0 | 71.6 | – | 205.5 | |||||||||||||||
|
Other current liabilities
|
16.1 | 163.6 | 124.2 | – | 303.9 | |||||||||||||||
|
Total current liabilities
|
100.8 | 674.6 | 908.0 | – | 1,683.4 | |||||||||||||||
|
Long-term debt
|
2,406.6 | 0.2 | 790.5 | – | 3,197.3 | |||||||||||||||
|
Intercompany borrowings
|
(493.9 | ) | 150.2 | 343.7 | – | – | ||||||||||||||
|
Employee benefit obligations
|
273.0 | 344.3 | 363.5 | – | 980.8 | |||||||||||||||
|
Deferred taxes and other liabilities
|
(37.8 | ) | 73.1 | 203.9 | – | 239.2 | ||||||||||||||
|
Total liabilities
|
2,248.7 | 1,242.4 | 2,609.6 | – | 6,100.7 | |||||||||||||||
|
Shareholders’ equity
|
||||||||||||||||||||
|
Convertible preferred stock
|
– | – | 4.8 | (4.8 | ) | – | ||||||||||||||
|
Preferred shareholders’ equity
|
– | – | 4.8 | (4.8 | ) | – | ||||||||||||||
|
Common stock
|
910.5 | 819.2 | 646.9 | (1,466.1 | ) | 910.5 | ||||||||||||||
|
Retained earnings
|
2,909.2 | 1,525.6 | 986.8 | (2,512.4 | ) | 2,909.2 | ||||||||||||||
|
Accumulated other comprehensive earnings (loss)
|
(9.4 | ) | (196.2 | ) | 195.2 | 1.0 | (9.4 | ) | ||||||||||||
|
Treasury stock, at cost
|
(2,282.4 | ) | – | – | – | (2,282.4 | ) | |||||||||||||
|
Common shareholders’ equity
|
1,527.9 | 2,148.6 | 1,828.9 | (3,977.5 | ) | 1,527.9 | ||||||||||||||
|
Total Ball Corporation shareholders’ equity
|
1,527.9 | 2,148.6 | 1,833.7 | (3,982.3 | ) | 1,527.9 | ||||||||||||||
|
Noncontrolling interests
|
– | – | 154.4 | – | 154.4 | |||||||||||||||
|
Total shareholders’ equity
|
1,527.9 | 2,148.6 | 1,988.1 | (3,982.3 | ) | 1,682.3 | ||||||||||||||
|
Total Liabilities and Shareholders’ Equity
|
$ | 3,776.6 | $ | 3,391.0 | $ | 4,597.7 | $ | (3,982.3 | ) | $ | 7,783.0 | |||||||||
Page 3 of 6
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CONDENSED, CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||
|
December 31, 2010
|
||||||||||||||||||||
|
($ in millions)
|
Ball
|
Guarantor
|
Non-Guarantor
|
Eliminating
|
Consolidated
|
|||||||||||||||
|
Corporation
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Total
|
||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 0.2 | $ | 1.7 | $ | 150.1 | $ | – | $ | 152.0 | ||||||||||
|
Receivables, net
|
(0.5 | ) | 157.0 | 693.2 | – | 849.7 | ||||||||||||||
|
Inventories, net
|
– | 763.3 | 320.6 | – | 1,083.9 | |||||||||||||||
|
Deferred taxes and other current assets
|
19.0 | 126.8 | 74.3 | – | 220.1 | |||||||||||||||
|
Total current assets
|
18.7 | 1,048.8 | 1,238.2 | – | 2,305.7 | |||||||||||||||
|
Property, plant and equipment, net
|
29.6 | 893.8 | 1,124.8 | – | 2,048.2 | |||||||||||||||
|
Investment in subsidiaries
|
3,372.9 | 217.3 | 151.0 | (3,741.2 | ) | - | ||||||||||||||
|
Goodwill
|
– | 927.0 | 1,178.3 | – | 2,105.3 | |||||||||||||||
|
Intangibles and other assets, net
|
176.0 | 129.0 | 163.5 | – | 468.5 | |||||||||||||||
|
Total Assets
|
$ | 3,597.2 | $ | 3,215.9 | $ | 3,855.8 | $ | (3,741.2 | ) | $ | 6,927.7 | |||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Short-term debt and current portion of long-term debt
|
$ | 17.9 | $ | 0.2 | $ | 92.6 | $ | – | $ | 110.7 | ||||||||||
|
Accounts payable
|
17.5 | 362.2 | 320.6 | – | 700.3 | |||||||||||||||
|
Accrued employee costs
|
24.7 | 165.1 | 68.4 | – | 258.2 | |||||||||||||||
|
Other current liabilities
|
59.3 | 126.8 | 128.0 | – | 314.1 | |||||||||||||||
|
Total current liabilities
|
119.4 | 654.3 | 609.6 | – | 1,383.3 | |||||||||||||||
|
Long-term debt
|
2,333.5 | 0.4 | 367.7 | – | 2,701.6 | |||||||||||||||
|
Intercompany borrowings
|
(536.7 | ) | 105.3 | 431.4 | – | – | ||||||||||||||
|
Employee benefit obligations
|
197.1 | 419.9 | 346.3 | – | 963.3 | |||||||||||||||
|
Deferred taxes and other liabilities
|
(34.1 | ) | 65.8 | 189.7 | – | 221.4 | ||||||||||||||
|
Total liabilities
|
2,079.2 | 1,245.7 | 1,944.7 | – | 5,269.6 | |||||||||||||||
|
Shareholders’ equity
|
||||||||||||||||||||
|
Convertible preferred stock
|
– | – | 4.8 | (4.8 | ) | – | ||||||||||||||
|
Preferred shareholders’ equity
|
– | – | 4.8 | (4.8 | ) | – | ||||||||||||||
|
Common stock
|
893.4 | 684.4 | 719.2 | (1,403.6 | ) | 893.4 | ||||||||||||||
|
Retained earnings
|
2,829.8 | 1,480.8 | 923.8 | (2,404.6 | ) | 2,829.8 | ||||||||||||||
|
Accumulated other comprehensive earnings (loss)
|
(82.1 | ) | (195.0 | ) | 123.2 | 71.8 | (82.1 | ) | ||||||||||||
|
Treasury stock, at cost
|
(2,123.1 | ) | – | – | – | (2,123.1 | ) | |||||||||||||
|
Common shareholders’ equity
|
1,518.0 | 1,970.2 | 1,766.2 | (3,736.4 | ) | 1,518.0 | ||||||||||||||
|
Total Ball Corporation shareholders’ equity
|
1,518.0 | 1,970.2 | 1,771.0 | (3,741.2 | ) | 1,518.0 | ||||||||||||||
|
Noncontrolling interests
|
– | – | 140.1 | – | 140.1 | |||||||||||||||
|
Total shareholders’ equity
|
1,518.0 | 1,970.2 | 1,911.1 | (3,741.2 | ) | 1,658.1 | ||||||||||||||
|
Total Liabilities and Shareholders’ Equity
|
$ | 3,597.2 | $ | 3,215.9 | $ | 3,855.8 | $ | (3,741.2 | ) | $ | 6,927.7 | |||||||||
Page 4 of 6
|
UNAUDITED CONDENSED CONSOLIDATING
STATEMENT OF CASH FLOWS
|
||||||||||||||||
|
For the Three Months Ended April 3, 2011
|
||||||||||||||||
|
Ball
|
Guarantor
|
Non-Guarantor
|
Consolidated
|
|||||||||||||
|
($ in millions)
|
Corporation
|
Subsidiaries
|
Subsidiaries
|
Total
|
||||||||||||
|
Cash provided by (used in) continuing operating activities
|
$ | (66.0 | ) | $ | 96.9 | $ | (103.7 | ) | $ | (72.8 | ) | |||||
|
Cash provided by (used in) discontinued operating activities
|
− | (1.3 | ) | (0.3 | ) | (1.6 | ) | |||||||||
|
Total cash provided by (used in) operating activities
|
(66.0 | ) | 95.6 | (104.0 | ) | (74.4 | ) | |||||||||
|
Cash flows from investing activities
|
||||||||||||||||
|
Additions to property, plant and equipment
|
(3.6 | ) | (34.7 | ) | (56.7 | ) | (95.0 | ) | ||||||||
|
Acquisition of business
|
– | − | (295.2 | ) | (295.2 | ) | ||||||||||
|
Investments in and advances to affiliates
|
157.3 | (65.8 | ) | (91.5 | ) | – | ||||||||||
|
Other, net
|
1.1 | 4.9 | − | 6.0 | ||||||||||||
|
Total cash provided by (used in) investing activities
|
154.8 | (95.6 | ) | (443.4 | ) | (384.2 | ) | |||||||||
|
Cash flows from financing activities
|
||||||||||||||||
|
Long-term borrowings
|
75.0 | − | 388.9 | 463.9 | ||||||||||||
|
Repayments of long-term borrowings
|
− | (0.2 | ) | (2.0 | ) | (2.2 | ) | |||||||||
|
Change in short-term borrowings
|
(3.6 | ) | – | 199.8 | 196.2 | |||||||||||
|
Proceeds from issuances of common stock
|
13.7 | – | – | 13.7 | ||||||||||||
|
Acquisitions of treasury stock
|
(164.3 | ) | – | – | (164.3 | ) | ||||||||||
|
Common dividends
|
(11.7 | ) | – | – | (11.7 | ) | ||||||||||
|
Other, net
|
2.4 | – | – | 2.4 | ||||||||||||
|
Cash provided by (used in) financing activities
|
(88.5 | ) | (0.2 | ) | 586.7 | 498.0 | ||||||||||
|
Effect of exchange rate changes on cash
|
– | – | 1.7 | 1.7 | ||||||||||||
|
Change in cash and cash equivalents
|
0.3 | (0.2 | ) | 41.0 | 41.1 | |||||||||||
|
Cash and cash equivalents – beginning of period
|
0.2 | 1.7 | 150.1 | 152.0 | ||||||||||||
|
Cash and cash equivalents – end of period
|
$ | 0.5 | $ | 1.5 | $ | 191.1 | $ | 193.1 | ||||||||
Page 5 of 6
|
UNAUDITED CONDENSED CONSOLIDATING
STATEMENT OF CASH FLOWS
|
||||||||||||||||
|
For the Three Months Ended March 28, 2010
|
||||||||||||||||
|
Ball
|
Guarantor
|
Non-Guarantor
|
Consolidated
|
|||||||||||||
|
($ in millions)
|
Corporation
|
Subsidiaries
|
Subsidiaries
|
Total
|
||||||||||||
|
Cash provided by (used in) continuing operating activities
|
$ | 2.8 | $ | 81.6 | $ | (362.6 | ) | $ | (278.2 | ) | ||||||
|
Cash provided by (used in) discontinued operating activities
|
(0.2 | ) | 6.4 | − | 6.2 | |||||||||||
|
Total cash provided by (used in) operating activities
|
2.6 | 88.0 | (362.6 | ) | (272.0 | ) | ||||||||||
|
Cash flows from investing activities
|
||||||||||||||||
|
Additions to property, plant and equipment
|
(2.4 | ) | (15.9 | ) | (15.0 | ) | (33.3 | ) | ||||||||
|
Investments in and advances to affiliates
|
(191.4 | ) | (60.0 | ) | 251.4 | – | ||||||||||
|
Other, net
|
(4.8 | ) | (6.5 | ) | − | (11.3 | ) | |||||||||
|
Cash provided by (used in) continuing investing activities
|
(198.6 | ) | (82.4 | ) | 236.4 | (44.6 | ) | |||||||||
|
Cash used in discontinued investing activities
|
– | (3.7 | ) | − | (3.7 | ) | ||||||||||
|
Total cash provided by (used in) investing activities
|
(198.6 | ) | (86.1 | ) | 236.4 | (48.3 | ) | |||||||||
|
Cash flows from financing activities
|
||||||||||||||||
|
Long-term borrowings
|
720.3 | – | 68.7 | 789.0 | ||||||||||||
|
Repayments of long-term borrowings
|
(220.3 | ) | (1.9 | ) | − | (222.2 | ) | |||||||||
|
Change in short-term borrowings
|
– | – | 66.7 | 66.7 | ||||||||||||
|
Proceeds from issuances of common stock
|
9.7 | – | – | 9.7 | ||||||||||||
|
Acquisitions of treasury stock
|
(129.4 | ) | – | – | (129.4 | ) | ||||||||||
|
Common dividends
|
(9.2 | ) | – | – | (9.2 | ) | ||||||||||
|
Other, net
|
(6.4 | ) | – | – | (6.4 | ) | ||||||||||
|
Cash provided by (used in) financing activities
|
364.7 | (1.9 | ) | 135.4 | 498.2 | |||||||||||
|
Effect of exchange rate changes on cash
|
– | – | 2.9 | 2.9 | ||||||||||||
|
Change in cash and cash equivalents
|
168.7 | − | 12.1 | 180.8 | ||||||||||||
|
Cash and cash equivalents – beginning of period
|
111.3 | 0.1 | 99.2 | 210.6 | ||||||||||||
|
Cash and cash equivalents – end of period
|
$ | 280.0 | $ | 0.1 | $ | 111.3 | $ | 391.4 | ||||||||
Page 6 of 6