EXHIBIT 20.1
Subsidiary Guarantees of Debt
The Company's Senior Notes, Senior Subordinated Notes and Senior Credit Facility
agreements are guaranteed on a full, unconditional, and joint and several basis
by certain of the Company's domestic subsidiaries. The following is condensed,
consolidating financial information for the Company, segregating the guarantor
subsidiaries and non-guarantor subsidiaries, as of April 4, 1999, and December
31, 1998, and for the three-month periods ended April 4, 1999, and March 29,
1998 (in millions of dollars). Certain prior year amounts have been reclassified
in order to conform with the current year presentation.
CONSOLIDATED BALANCE SHEET
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April 4, 1999
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
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ASSETS
Current assets
Cash and temporary investments $ 7.1 $ 0.5 $ 34.5 $ - $ 42.1
Accounts receivable, net 4.8 228.4 80.1 - 313.3
Inventories, net - 465.0 116.9 - 581.9
Deferred income tax benefits and
prepaid expenses 101.1 77.8 12.5 (106.0) 85.4
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Total current assets 113.0 771.7 244.0 (106.0) 1,022.7
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Property, plant and equipment, at cost 24.8 1,477.8 386.4 - 1,889.0
Accumulated depreciation (12.0) (631.4) (87.5) - (730.9)
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12.8 846.4 298.9 - 1,158.1
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Investment in subsidiaries 922.9 336.1 10.0 (1,269.0) -
Investment in affiliates 6.1 2.1 73.2 - 81.4
Goodwill, net - 412.9 120.9 - 533.8
Other assets 94.4 42.7 18.3 - 155.4
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$ 1,149.2 $ 2,411.9 $ 765.3 $ (1,375.0) $ 2,951.4
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 82.5 $ - $ 96.3 $ - $ 178.8
Accounts payable 13.5 276.4 58.2 - 348.1
Salaries and wages 8.1 55.9 6.1 - 70.1
Other current liabilities 35.3 136.6 40.9 (106.0) 106.8
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Total current liabilities 139.4 468.9 201.5 (106.0) 703.8
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Long-term debt 1,296.2 10.5 13.6 - 1,320.3
Intercompany borrowings (1,022.5) 865.3 157.2 - -
Employee benefit obligations,
deferred income taxes and other 101.9 114.4 56.2 - 272.5
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Total noncurrent liabilities 375.6 990.2 227.0 - 1,592.8
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Contingencies
Minority interests - - 20.6 - 20.6
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Shareholders' equity
Series B ESOP Convertible
Preferred Stock 58.3 - - - 58.3
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (29.5) - - - (29.5)
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Preferred shareholders' equity 28.8 - 179.6 (179.6) 28.8
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Common stock (35,062,827 shares
issued) 375.5 821.9 186.8 (1,008.7) 375.5
Retained earnings 408.4 132.9 (26.8) (106.1) 408.4
Accumulated other comprehensive loss (29.7) (2.0) (23.4) 25.4 (29.7)
Treasury stock, at cost (4,613,905
shares) (148.8) - - - (148.8)
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Common shareholders' equity 605.4 952.8 136.6 (1,089.4) 605.4
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Total shareholders' equity 634.2 952.8 316.2 (1,269.0) 634.2
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$ 1,149.2 $ 2,411.9 $ 765.3 $ (1,375.0) $ 2,951.4
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CONSOLIDATED BALANCE SHEET
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December 31, 1998
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
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ASSETS
Current assets
Cash and temporary investments $ 11.6 $ 0.5 $ 21.9 $ - $ 34.0
Accounts receivable, net 3.5 194.1 75.9 - 273.5
Inventories, net - 382.5 101.3 - 483.8
Deferred income tax benefits and
prepaid expenses 94.8 76.9 19.4 (96.8) 94.3
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Total current assets 109.9 654.0 218.5 (96.8) 885.6
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Property, plant and equipment, at cost 35.5 1,471.5 375.9 - 1,882.9
Accumulated depreciation (19.8) (606.0) (82.7) - (708.5)
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15.7 865.5 293.2 - 1,174.4
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Investment in subsidiaries 1,241.2 0.7 4.8 (1,246.7) -
Investment in affiliates 5.8 2.2 72.9 - 80.9
Goodwill, net - 431.1 124.8 - 555.9
Other assets 97.1 42.5 18.4 - 158.0
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$ 1,469.7 $ 1,996.0 $ 732.6 $ (1,343.5) $ 2,854.8
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 31.1 $ - $ 95.7 $ - $ 126.8
Accounts payable 48.3 251.2 50.8 - 350.3
Salaries and wages 14.1 75.1 7.9 - 97.1
Other current liabilities 46.1 121.7 42.4 (96.8) 113.4
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Total current liabilities 139.6 448.0 196.8 (96.8) 687.6
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Long-term debt 1,195.4 10.5 23.9 - 1,229.8
Intercompany borrowings (596.6) 477.3 119.3 - -
Employee benefit obligations,
deferred income taxes and other 109.0 126.5 55.2 - 290.7
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Total noncurrent liabilities 707.8 614.3 198.4 - 1,520.5
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Contingencies
Minority interests - - 24.4 - 24.4
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Shareholders' equity
Series B ESOP Convertible Preferred
Stock 57.2 - - - 57.2
Convertible preferred stock - - 174.6 (174.6) -
Unearned compensation - ESOP (29.5) - - - (29.5)
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Preferred shareholders' equity 27.7 - 174.6 (174.6) 27.7
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Common stock (34,859,636 shares
issued) 368.4 821.7 187.9 (1,009.6) 368.4
Retained earnings 397.9 114.3 (24.5) (89.8) 397.9
Accumulated other comprehensive loss (31.7) (2.3) (25.0) 27.3 (31.7)
Treasury stock, at cost (4,404,758
shares) (140.0) - - - (140.0)
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Common shareholders' equity 594.6 933.7 138.4 (1,072.1) 594.6
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Total shareholders' equity 622.3 933.7 313.0 (1,246.7) 622.3
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$ 1,469.7 $ 1,996.0 $ 732.6 $ (1,343.5) $ 2,854.8
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CONSOLIDATED STATEMENT OF INCOME
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For the Three months Ended April 4, 1999
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Net sales $ - $ 774.2 $ 94.9 $ (48.8) $ 820.3
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 661.4 79.3 (48.8) 691.9
Depreciation and amortization 0.8 32.6 8.1 - 41.5
Selling and administrative expenses 1.6 23.2 5.7 - 30.5
Product development and other - 3.6 - - 3.6
Interest expense 15.5 9.9 2.8 - 28.2
Equity in earnings of subsidiaries (16.3) - - 16.3 -
Corporate allocations (12.6) 12.6 - - -
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(11.0) 743.3 95.9 (32.5) 795.7
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Income (loss) before taxes on income 11.0 30.9 (1.0) (16.3) 24.6
Provision for taxes on income 4.4 (12.3) (1.8) - (9.7)
Minority interests - - 0.5 - 0.5
Equity in earnings of affiliates 0.3 - - - 0.3
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Net income (loss) 15.7 18.6 (2.3) (16.3) 15.7
Preferred dividends, net of tax benefit (0.7) - - - (0.7)
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Net earnings (loss) attributable to
common shareholders $ 15.0 $ 18.6 $ (2.3) $ (16.3) $ 15.0
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CONSOLIDATED STATEMENT OF INCOME
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For the Three months Ended March 29, 1998
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Net sales $ - $ 498.0 $ 101.2 $ (49.5) $ 549.7
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 431.2 84.5 (49.5) 466.2
Depreciation and amortization 0.7 20.2 8.5 - 29.4
Selling and administrative expenses (0.5) 17.5 8.4 - 25.4
Product development and other - 3.3 - 3.3
Headquarters relocation costs 6.3 - - - 6.3
Interest expense 8.8 (1.9) 5.8 - 12.7
Equity in earnings of subsidiaries (4.2) - - 4.2 -
Corporate allocations (9.6) 9.6 - - -
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1.5 479.9 107.2 (45.3) 543.3
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Income (loss) before taxes on income (1.5) 18.1 (6.0) (4.2) 6.4
Provision for taxes on income 6.7 (8.5) (1.4) - (3.2)
Minority interests - - 2.6 - 2.6
Equity in earnings (losses) of
affiliates 0.1 - (0.4) - (0.3)
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Net income (loss) before accounting
change 5.3 9.6 (5.2) (4.2) 5.5
Cumulative effect of accounting change - (1.6) (1.7) - (3.3)
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Net income (loss) 5.3 8.0 (6.9) (4.2) 2.2
Preferred dividends, net of tax benefit (0.7) - - - (0.7)
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Net earnings (loss) attributable to
common shareholders $ 4.6 $ 8.0 $ (6.9) $ (4.2) $ 1.5
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CONSOLIDATED STATEMENT OF CASH FLOWS
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For the Three months Ended April 4, 1999
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
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Cash flows from operating activities
Net income (loss) $ 15.7 $ 18.6 $ (2.3) $ (16.3) $ 15.7
Reconciliation of net income (loss)
to net cash used in operating
activities:
Depreciation and amortization 0.8 32.6 8.1 - 41.5
Equity earnings of subsidiaries (16.3) - - 16.3 -
Other, net 2.3 12.3 0.4 - 15.0
Changes in working capital
components (22.8) (143.6) (15.1) - (181.5)
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Net cash used in operating
activities (20.3) (80.1) (8.9) - (109.3)
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Cash flows from investing activities
Additions to property, plant and
equipment (0.3) (14.5) (6.7) - (21.5)
Investments in and advances to
affiliates, net (133.0) 93.6 39.4 - -
Other, net 3.7 1.0 (1.5) - 3.2
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Net cash provided by (used in)
investing activities (129.6) 80.1 31.2 - (18.3)
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Cash flows from financing activities
Net change in long-term debt 104.5 - (12.0) - 92.5
Net change in short-term debt 47.7 - 2.3 - 50.0
Common and preferred dividends (4.5) - - - (4.5)
Net proceeds from issuance of common
stock under various employee and
shareholder plans 7.0 - - - 7.0
Acquisitions of treasury stock (8.8) - - - (8.8)
Other, net (0.5) - - - (0.5)
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Net cash provided by (used in)
financing activities 145.4 - (9.7) - 135.7
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Net increase (decrease) in cash and
temporary investments (4.5) - 12.6 - 8.1
Cash and temporary investments:
Beginning of period 11.6 0.5 21.9 - 34.0
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End of period $ 7.1 $ 0.5 $ 34.5 $ - $ 42.1
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CONSOLIDATED STATEMENT OF CASH FLOWS
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For the Three months Ended March 29, 1998
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
------------- -------------- ---------------- -------------- --------------
Cash flows from operating activities
Net income (loss) $ 5.3 $ 8.0 $ (6.9) $ (4.2) $ 2.2
Reconciliation of net income (loss)
to net cash provided by (used in)
operating activities:
Depreciation and amortization 0.7 20.2 8.5 - 29.4
Headquarters relocation costs 6.3 - - - 6.3
Equity earnings of subsidiaries (4.2) - - 4.2 -
Other, net 2.8 2.4 2.0 - 7.2
Changes in working capital
components, excluding effect of
acquisitions 11.7 (66.0) (3.1) - (57.4)
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Net cash provided by (used in)
operating activities 22.6 (35.4) 0.5 - (12.3)
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Cash flows from investing activities
Additions to property, plant and
equipment (0.4) (12.6) (3.9) - (16.9)
Intercompany capital contributions
and transactions (45.2) 52.0 (6.8) - -
Other, net 1.0 0.2 (1.6) - (0.4)
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Net cash provided by (used in)
investing activities (44.6) 39.6 (12.3) - (17.3)
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Cash flows from financing activities
Net change in long-term debt - (3.9) (3.8) - (7.7)
Net change in short-term debt 29.0 - 27.5 - 56.5
Common and preferred dividends (4.5) - - - (4.5)
Net proceeds from issuance of common
stock under various employee and
shareholder plans 5.1 - - - 5.1
Acquisitions of treasury stock (2.5) - - - (2.5)
Other, net (0.5) - (1.0) - (1.5)
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Net cash provided by (used in)
financing activities 26.6 (3.9) 22.7 - 45.4
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Net increase in cash and temporary
investments 4.6 0.3 10.9 - 15.8
Cash and temporary investments:
Beginning of period 4.2 0.5 20.8 - 25.5
------------- -------------- ---------------- -------------- --------------
End of period $ 8.8 $ 0.8 $ 31.7 $ - $ 41.3
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