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 wholly owned domestic subsidiaries. The following is
condensed, consolidating financial information for the Company, segregating the
guarantor subsidiaries and non-guarantor subsidiaries, as of October 3, 1999,
and December 31, 1998, and for the nine-month periods ended October 3, 1999, and
September 27, 1998 (in millions of dollars). Certain prior-year amounts have
been reclassified in order to conform with the current year presentation.
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.
CONSOLIDATED BALANCE SHEET
------------------------------------------------------------------------------
October 3, 1999
------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- -------------- -------------- --------------
ASSETS
Current assets
Cash and temporary investments $ 7.6 $ 0.4 $ 22.6 $ - $ 30.6
Accounts receivable, net 4.2 346.0 70.5 - 420.7
Inventories, net - 394.1 103.6 - 497.7
Deferred income tax benefits and
prepaid expenses 115.1 91.0 11.7 (144.8) 73.0
-------------- -------------- -------------- -------------- --------------
Total current assets 126.9 831.5 208.4 (144.8) 1,022.0
-------------- -------------- -------------- -------------- --------------
Property, plant and equipment, at cost 25.0 1,493.9 382.5 - 1,901.4
Accumulated depreciation (12.8) (678.0) (91.9) - (782.7)
-------------- -------------- -------------- -------------- --------------
12.2 815.9 290.6 - 1,118.7
-------------- -------------- -------------- -------------- --------------
Investment in subsidiaries 1,334.9 335.8 10.1 (1,680.8) -
Investment in affiliates 9.1 2.5 70.7 - 82.3
Goodwill, net - 367.7 119.0 - 486.7
Other assets 79.3 38.5 19.2 - 137.0
-------------- -------------- -------------- -------------- --------------
$ 1,562.4 $ 2,391.9 $ 718.0 $(1,825.6) $ 2,846.7
============== ============== ============== ============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 44.1 $ - $ 59.8 $ - $ 103.9
Accounts payable 13.3 274.2 70.3 - 357.8
Salaries and wages 6.9 85.6 8.0 - 100.5
Other current liabilities 23.4 159.5 39.1 (144.8) 77.2
-------------- -------------- -------------- -------------- --------------
Total current liabilities 87.7 519.3 177.2 (144.8) 639.4
-------------- -------------- -------------- -------------- --------------
Long-term debt 1,212.9 10.4 6.8 - 1,230.1
Intercompany borrowings (535.9) 402.8 133.1 - -
Employee benefit obligations,
deferred income taxes and other 110.1 101.3 58.1 - 269.5
-------------- -------------- -------------- -------------- --------------
Total noncurrent liabilities 787.1 514.5 198.0 - 1,499.6
-------------- -------------- -------------- -------------- --------------
Contingencies
Minority interests - - 20.1 - 20.1
-------------- -------------- -------------- -------------- --------------
Shareholders' equity
Series B ESOP Convertible Preferred
Stock 56.3 - - - 56.3
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (25.1) - - - (25.1)
-------------- -------------- -------------- -------------- --------------
Preferred shareholders' equity 31.2 - 179.6 (179.6) 31.2
-------------- -------------- -------------- -------------- --------------
Common stock 407.0 1,155.7 185.2 (1,340.9) 407.0
Retained earnings (deficit) 466.9 204.1 (18.5) (185.6) 466.9
Accumulated other comprehensive loss (29.4) (1.7) (23.6) 25.3 (29.4)
Treasury stock, at cost (188.1) - - - (188.1)
-------------- -------------- -------------- -------------- --------------
Common shareholders' equity 656.4 1,358.1 143.1 (1,501.2) 656.4
-------------- -------------- -------------- -------------- --------------
Total shareholders' equity 687.6 1,358.1 322.7 (1,680.8) 687.6
-------------- -------------- -------------- -------------- --------------
$ 1,562.4 $ 2,391.9 $ 718.0 $(1,825.6) $ 2,846.7
============== ============== ============== ============== ==============
CONSOLIDATED BALANCE SHEET
------------------------------------------------------------------------------
December 31, 1998
------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- -------------- -------------- --------------
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
-------------- -------------- -------------- -------------- --------------
Total current assets 109.9 654.0 218.5 (96.8) 885.6
-------------- -------------- -------------- -------------- --------------
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)
-------------- -------------- -------------- -------------- --------------
15.7 865.5 293.2 - 1,174.4
-------------- -------------- -------------- -------------- --------------
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
-------------- -------------- -------------- -------------- --------------
$ 1,469.7 $ 1,996.0 $ 732.6 $(1,343.5) $ 2,854.8
============== ============== ============== ============== ==============
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
-------------- -------------- -------------- -------------- --------------
Total current liabilities 139.6 448.0 196.8 (96.8) 687.6
-------------- -------------- -------------- -------------- --------------
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
-------------- -------------- -------------- -------------- --------------
Total noncurrent liabilities 707.8 614.3 198.4 - 1,520.5
-------------- -------------- -------------- -------------- --------------
Contingencies
Minority interests - - 24.4 - 24.4
-------------- -------------- -------------- -------------- --------------
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)
-------------- -------------- -------------- -------------- --------------
Preferred shareholders' equity 27.7 - 174.6 (174.6) 27.7
-------------- -------------- -------------- -------------- --------------
Common stock 368.4 821.7 187.9 (1,009.6) 368.4
Retained earnings (deficit) 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 (140.0) - - - (140.0)
-------------- -------------- -------------- -------------- --------------
Common shareholders' equity 594.6 933.7 138.4 (1,072.1) 594.6
-------------- -------------- -------------- -------------- --------------
Total shareholders' equity 622.3 933.7 313.0 (1,246.7) 622.3
-------------- -------------- -------------- -------------- --------------
$ 1,469.7 $ 1,996.0 $ 732.6 $(1,343.5) $ 2,854.8
============== ============== ============== ============== ==============
CONSOLIDATED STATEMENT OF INCOME
------------------------------------------------------------------------------
For the Nine Months Ended October 3, 1999
------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- -------------- -------------- --------------
Net sales $ - $ 2,630.6 $ 359.6 $ (199.3) $ 2,790.9
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 2,237.6 296.0 (199.3) 2,334.3
Depreciation and amortization 2.4 97.3 22.3 - 122.0
Selling and administrative expenses 13.8 70.4 20.2 - 104.4
Product development and other - 9.9 0.1 - 10.0
Interest expense 43.1 31.5 7.4 - 82.0
Equity in earnings of subsidiaries (95.8) - - 95.8 -
Corporate allocations (41.5) 41.5 - - -
-------------- -------------- -------------- -------------- --------------
(78.0) 2,488.2 346.0 (103.5) 2,652.7
-------------- -------------- -------------- -------------- --------------
Income (loss) before taxes on income 78.0 142.4 13.6 (95.8) 138.2
Provision for taxes on income 6.5 (52.6) (6.3) - (52.4)
Minority interests - - (1.3) - (1.3)
Equity in earnings of affiliates 0.2 - - - 0.2
-------------- -------------- -------------- -------------- --------------
Net income (loss) 84.7 89.8 6.0 (95.8) 84.7
Preferred dividends, net of tax benefit (2.0) - - - (2.0)
-------------- -------------- -------------- -------------- --------------
Net earnings (loss) attributable to
common shareholders $ 82.7 $ 89.8 $ 6.0 $ (95.8) $ 82.7
============== ============== ============== ============== ==============
CONSOLIDATED STATEMENT OF INCOME
------------------------------------------------------------------------------
For the Nine Months Ended September 27, 1998
------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- -------------- -------------- --------------
Net sales $ - $ 1,886.2 $ 355.2 $ (186.9) $ 2,054.5
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 1,622.1 297.3 (186.9) 1,732.5
Depreciation and amortization 2.2 70.8 24.0 - 97.0
Selling and administrative expenses (1.1) 54.2 26.4 - 79.5
Product development and other - 10.6 0.1 - 10.7
Headquarters relocation costs 15.0 - - - 15.0
Interest expense 36.5 (2.9) 14.9 - 48.5
Equity in earnings of subsidiaries (49.6) - - 49.6 -
Corporate allocations (22.0) 22.0 - - -
-------------- -------------- -------------- -------------- --------------
(19.0) 1,776.8 362.7 (137.3) 1,983.2
-------------- -------------- -------------- -------------- --------------
Income (loss) before taxes on income 19.0 109.4 (7.5) (49.6) 71.3
Provision for taxes on income 16.4 (38.7) (5.4) - (27.7)
Minority interests - - 5.1 - 5.1
Equity in earnings (losses) of affiliates 0.1 - 1.1 - 1.2
-------------- -------------- -------------- -------------- --------------
Income (loss) before extraordinary item
and accounting change 35.5 70.7 (6.7) (49.6) 49.9
Extraordinary loss from early debt
extinguishment (1.0) (11.1) - - (12.1)
Cumulative effect of accounting change - (1.6) (1.7) - (3.3)
-------------- -------------- -------------- -------------- --------------
Net income (loss) 34.5 58.0 (8.4) (49.6) 34.5
Preferred dividends, net of tax benefit (2.1) - - - (2.1)
-------------- -------------- -------------- -------------- --------------
Net earnings (loss) attributable to
common shareholders $ 32.4 $ 58.0 $ (8.4) $ (49.6) $ 32.4
============== ============== ============== ============== ==============
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------------------------------------------------
For the Nine Months Ended October 3, 1999
------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- -------------- -------------- --------------
Cash flows from operating activities
Net income (loss) $ 84.7 $ 89.8 $ 6.0 $ (95.8) $ 84.7
Reconciliation of net income (loss)
to net cash (used in) provided by
operating activities:
Depreciation and amortization 2.4 97.2 22.4 - 122.0
Deferred income tax provision 1.7 26.6 2.6 - 30.9
Equity in earnings of subsidiaries (95.8) - - 95.8 -
Other, net 19.2 (10.9) 0.3 - 8.6
Changes in working capital
components (15.2) (137.0) 21.7 - (130.5)
-------------- -------------- -------------- -------------- --------------
Net cash (used in) provided by
operating activities (3.0) 65.7 53.0 - 115.7
-------------- -------------- -------------- -------------- --------------
Cash flows from investing activities
Additions to property, plant and
equipment (0.5) (54.1) (14.5) - (69.1)
Investments in and advances to
affiliates, net (2.9) (9.4) 12.3 - -
Other, net 2.7 (1.7) 2.7 - 3.7
-------------- -------------- -------------- -------------- --------------
Net cash (used in) provided by
investing activities (0.7) (65.2) 0.5 - (65.4)
-------------- -------------- -------------- -------------- --------------
Cash flows from financing activities
Net change in long-term debt 33.5 (0.1) (37.8) - (4.4)
Net change in short-term debt 1.5 - (15.1) - (13.6)
Acquisitions of treasury stock (48.1) - - - (48.1)
Net proceeds from issuance of common
stock under various employee and
shareholder plans 30.8 - - - 30.8
Common and preferred dividends (15.9) - - - (15.9)
Other, net (2.1) (0.5) 0.1 - (2.5)
-------------- -------------- -------------- -------------- --------------
Net cash provided by (used in)
financing activities (0.3) (0.6) (52.8) - (53.7)
-------------- -------------- -------------- -------------- --------------
Net increase (decrease) in cash and
temporary investments (4.0) (0.1) 0.7 - (3.4)
Cash and temporary investments:
Beginning of period 11.6 0.5 21.9 - 34.0
-------------- -------------- -------------- -------------- --------------
End of period $ 7.6 $ 0.4 $ 22.6 $ - $ 30.6
============== ============== ============== ============== ==============
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------------------------------------------------
For the Nine Months Ended September 27, 1998
------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
-------------- -------------- -------------- -------------- --------------
Cash flows from operating activities
Net income (loss) $ 34.5 $ 58.0 $ (8.4) $ (49.6) $ 34.5
Reconciliation of net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 2.2 70.8 24.0 - 97.0
Headquarters relocation costs 8.0 - - - 8.0
Extraordinary loss from early
debt extinguishment 2.0 17.9 - - 19.9
Equity earnings of subsidiaries (49.6) - - 49.6 -
Other, net 3.6 9.0 (2.9) - 9.7
Changes in working capital
components, excluding effect of
acquisitions 51.4 (44.5) 41.5 - 48.4
-------------- -------------- -------------- -------------- --------------
Net cash provided by operating
activities 52.1 111.2 54.2 - 217.5
-------------- -------------- -------------- -------------- --------------
Cash flows from investing activities
Additions to property, plant and
equipment (2.2) (39.4) (10.1) - (51.7)
Acquisitions, net of cash acquired (14.6) (779.7) - - (794.3)
Investments in and advances to
affiliates, net (1,074.9) 1,048.9 25.1 - (0.9)
Intercompany capital contributions
and transactions (75.5) - 75.5 - -
Other, net 0.6 (0.7) (2.9) - (3.0)
-------------- -------------- -------------- -------------- --------------
Net cash (used in) provided by
investing activities (1,166.6) 229.1 87.6 - (849.9)
-------------- -------------- -------------- -------------- --------------
Cash flows from financing activities
Net change in long-term debt 1,194.2 (322.9) (26.4) - 844.9
Net change in short-term debt (40.7) - (107.6) - (148.3)
Debt issuance costs (28.9) - - - (28.9)
Debt prepayment costs - (17.5) - - (17.5)
Common and preferred dividends (15.9) - - - (15.9)
Net proceeds from issuance of common
stock under various employee and
shareholder plans 25.2 - - - 25.2
Acquisitions of treasury stock (12.6) - - - (12.6)
Other, net (0.5) - (5.5) - (6.0)
-------------- -------------- -------------- -------------- --------------
Net cash provided by (used in)
financing activities 1,120.8 (340.4) (139.5) - 640.9
-------------- -------------- -------------- -------------- --------------
Net increase in cash and temporary
investments 6.3 (0.1) 2.3 - 8.5
Cash and temporary investments:
Beginning of period 4.2 0.5 20.8 - 25.5
-------------- -------------- -------------- -------------- --------------
End of period $ 10.5 $ 0.4 $ 23.1 $ - $ 34.0
============== ============== ============== ============== ==============