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 June 30, 2002, and December 31, 2001 (in millions of dollars).
The presentation of certain prior-year amounts has been changed in order to conform to 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
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June 30, 2002
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
--------------- --------------- --------------- -------------- --------------
ASSETS
Current assets
Cash and temporary investments $ 20.6 $ 0.5 $ 15.4 $ - $ 36.5
Accounts receivable, net 1.3 256.1 27.5 - 284.9
Inventories, net - 359.3 87.7 - 447.0
Deferred income tax benefits and
prepaid expenses 195.0 137.4 0.9 (266.0) 67.3
--------------- --------------- --------------- -------------- --------------
Total current assets 216.9 753.3 131.5 (266.0) 835.7
--------------- --------------- --------------- --------------- --------------
Property, plant and equipment, at cost 25.6 1,667.9 260.6 - 1,954.1
Accumulated depreciation (14.0) (913.7) (119.1) - (1,046.8)
--------------- --------------- --------------- -------------- --------------
11.6 754.2 141.5 - 907.3
--------------- --------------- --------------- -------------- --------------
Investments in subsidiaries 1,748.2 44.9 9.8 (1,802.9) -
Investments in affiliates 7.2 21.7 48.2 - 77.1
Goodwill, net - 318.3 33.4 - 351.7
Other assets 116.6 66.5 18.9 - 202.0
--------------- --------------- --------------- -------------- --------------
Total Assets $ 2,100.5 $ 1,958.9 $ 383.3 $ (2,068.9) $ 2,373.8
=============== =============== =============== ============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current
portion of long-term debt $ 77.0 $ - $ 45.4 $ - $ 122.4
Accounts payable 4.9 253.9 47.5 - 306.3
Accrued employee costs and other
current liabilities 58.1 366.8 43.9 (266.0) 202.8
--------------- --------------- --------------- -------------- --------------
Total current liabilities 140.0 620.7 136.8 (266.0) 631.5
Long-term debt 899.9 10.1 - - 910.0
Intercompany borrowings 395.7 219.9 83.3 (698.9) -
Employee benefit obligations,
deferred income taxes and other 129.9 101.7 56.8 - 288.4
--------------- --------------- --------------- -------------- --------------
Total liabilities 1,565.5 952.4 276.9 (964.9) 1,829.9
--------------- --------------- --------------- -------------- --------------
Contingencies
Minority interests - - 8.9 - 8.9
--------------- --------------- --------------- -------------- --------------
Shareholders' equity:
Convertible preferred stock - - 179.6 (179.6) -
--------------- --------------- --------------- -------------- --------------
Preferred shareholders' equity - - 179.6 (179.6) -
--------------- --------------- --------------- -------------- --------------
Common stock 499.6 724.6 239.2 (963.8) 499.6
Retained earnings (deficit) 477.2 283.1 (300.0) 16.9 477.2
Accumulated other comprehensive loss (26.6) (1.2) (21.3) 22.5 (26.6)
Treasury stock, at cost (415.2) - - - (415.2)
--------------- --------------- --------------- -------------- --------------
Common shareholders' equity
(deficit) 535.0 1,006.5 (82.1) (924.4) 535.0
--------------- --------------- --------------- -------------- --------------
Total shareholders' equity 535.0 1,006.5 97.5 (1,104.0) 535.0
--------------- --------------- --------------- -------------- --------------
Total Liabilities and
Shareholders' Equity $ 2,100.5 $ 1,958.9 $ 383.3 $ (2,068.9) $ 2,373.8
=============== =============== =============== ============== ==============
CONSOLIDATED BALANCE SHEET
------------------------------------------------------------------------------------------
December 31, 2001
------------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
--------------- ------------------ ----------------- ------------------ ------------------
ASSETS
Current assets
Cash and temporary investments $ 52.7 $ 0.4 $ 30.0 $ - $ 83.1
Accounts receivable, net 1.6 142.6 27.8 - 172.0
Inventories, net - 375.5 73.8 - 449.3
Deferred income tax benefits and
prepaid expenses 183.3 126.2 1.6 (222.0) 89.1
--------------- ------------------ ----------------- ------------------ ------------------
Total current assets 237.6 644.7 133.2 (222.0) 793.5
--------------- ------------------ ----------------- ------------------ ------------------
Property, plant and equipment, at
cost 25.9 1,620.2 258.7 - 1,904.8
Accumulated depreciation (13.8) (870.8) (115.8) - (1,000.4)
--------------- ------------------ ----------------- ------------------ ------------------
12.1 749.4 142.9 - 904.4
--------------- ------------------ ----------------- ------------------ ------------------
Investments in subsidiaries 1,637.8 57.9 9.8 (1,705.5) -
Investments in affiliates 7.4 15.3 46.1 - 68.8
Goodwill, net - 326.6 31.2 - 357.8
Other assets 106.2 65.5 17.4 - 189.1
--------------- ------------------ ----------------- ------------------ ------------------
Total Assets $ 2,001.1 $ 1,859.4 $ 380.6 $ (1,927.5) $ 2,313.6
=============== ================== ================= ================== ==================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Short-term debt and current
portion of long-term debt $ 67.0 $ - $ 48.0 $ - $ 115.0
Accounts payable 4.1 215.7 38.7 - 258.5
Accrued employee costs and other
current liabilities 54.4 324.9 43.9 (222.0) 201.2
--------------- ------------------ ----------------- ------------------ ------------------
Total current liabilities 125.5 540.6 130.6 (222.0) 574.7
Long-term debt 939.0 10.1 - - 949.1
Intercompany borrowings 308.2 291.7 98.9 (698.8) -
Employee benefit obligations,
deferred income taxes and other 124.3 95.4 56.3 - 276.0
--------------- ------------------ ----------------- ------------------ ------------------
Total liabilities 1,497.0 937.8 285.8 (920.8) 1,799.8
--------------- ------------------ ----------------- ------------------ ------------------
Contingencies
Minority interests - - 9.7 - 9.7
--------------- ------------------ ----------------- ------------------ ------------------
Shareholders' equity:
Convertible preferred stock - - 179.6 (179.6) -
--------------- ------------------ ----------------- ------------------ ------------------
Preferred shareholders' equity - - 179.6 (179.6) -
--------------- ------------------ ----------------- ------------------ ------------------
Common stock 478.9 724.5 239.2 (963.7) 478.9
Retained earnings (deficit) 410.0 207.8 (304.7) 96.9 410.0
Accumulated other comprehensive
loss (43.7) (10.7) (29.0) 39.7 (43.7)
Treasury stock, at cost (341.1) - - - (341.1)
--------------- ------------------ ----------------- ------------------ ------------------
Common shareholders' equity 504.1 921.6 (94.5) (827.1) 504.1
--------------- ------------------ ----------------- ------------------ ------------------
Total shareholders' equity 504.1 921.6 85.1 (1,006.7) 504.1
--------------- ------------------ ----------------- ------------------ ------------------
Total Liabilities and
Shareholders' Equity $ 2,001.1 $ 1,859.4 $ 380.6 $ (1,927.5) $ 2,313.6
=============== ================== ================= ================== ==================
CONSOLIDATED STATEMENT OF EARNINGS
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For the Six Months Ended June 30, 2002
------------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
--------------- ------------------ ----------------- ------------------ ------------------
Net sales $ - $ 1,844.7 $ 173.8 $ (108.4) $ 1,910.1
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 1,569.7 147.3 (108.4) 1,608.6
Depreciation and amortization 1.0 63.4 8.4 - 72.8
Selling and administrative 12.9 53.7 9.1 - 75.7
Receivable securitization fees
and other - 2.0 (0.1) - 1.9
Interest expense 20.0 12.0 4.3 - 36.3
Equity in net results of
subsidiaries (80.0) - - 80.0 -
Corporate allocations (25.7) 25.7 - - -
--------------- ------------------ ----------------- ------------------ ------------------
(71.8) 1,726.5 169.0 (28.4) 1,795.3
--------------- ------------------ ----------------- ------------------ ------------------
Earnings (loss) before taxes 71.8 118.2 4.8 (80.0) 114.8
Provision for taxes 5.8 (44.3) (1.7) - (40.2)
Minority interests - - (0.8) - (0.8)
Equity in net results of affiliates (0.2) 1.4 2.4 - 3.6
--------------- ------------------ ----------------- ------------------ ------------------
Earnings (loss) attributable to
common shareholders $ 77.4 $ 75.3 $ 4.7 $ (80.0) $ 77.4
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CONSOLIDATED STATEMENT OF EARNINGS
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For the Six Months Ended July 1, 2001
------------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
--------------- ------------------ ----------------- ------------------ ------------------
Net sales $ - $ 1,752.3 $ 202.1 $ (111.8) $ 1,842.6
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 1,512.4 173.1 (111.8) 1,573.7
Depreciation and amortization 1.1 64.0 12.0 - 77.1
Business consolidation costs - 16.0 237.7 - 253.7
Selling and administrative 4.7 43.6 12.6 - 60.9
Receivable securitization fees
and other - 7.2 (0.2) - 7.0
Interest expense 26.9 17.3 2.7 - 46.9
Equity in net results of
subsidiaries 193.9 - - (193.9) -
Corporate allocations (24.8) 24.8 - - -
--------------- ------------------ ----------------- ------------------ ------------------
201.8 1,685.3 437.9 (305.7) 2,019.3
--------------- ------------------ ----------------- ------------------ ------------------
Earnings (loss) before taxes (201.8) 67.0 (235.8) 193.9 (176.7)
Provision for taxes 58.2 (25.6) (1.7) - 30.9
Minority interests - - 1.2 - 1.2
Equity in net results of affiliates - (0.3) 1.3 - 1.0
--------------- ------------------ ----------------- ------------------ ------------------
Net earnings (loss) (143.6) 41.1 (235.0) 193.9 (143.6)
Preferred dividends, net of tax (1.2) - - - (1.2)
--------------- ------------------ ----------------- ------------------ ------------------
Earnings (loss) attributable to
common shareholders $ (144.8) $ 41.1 $ (235.0) $ 193.9 $ (144.8)
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CONSOLIDATED STATEMENT OF CASH FLOWS
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For the Six Months Ended June 30, 2002
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Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
--------------- ------------------ ----------------- ------------------ ------------------
Cash Flows from Operating Activities
Net earnings (loss) $ 77.4 $ 75.3 $ 4.7 $ (80.0) $ 77.4
Noncash charges to net earnings:
Depreciation and amortization 1.0 63.4 8.4 - 72.8
Deferred income taxes 0.3 15.6 (0.4) - 15.5
Equity in net results of
subsidiaries (79.8) (1.4) (1.6) 80.0 (2.8)
Other, net 11.3 (11.1) 0.1 - 0.3
Changes in working capital
components (12.2) (21.2) (1.6) - (35.0)
--------------- ------------------ ----------------- ------------------ ------------------
Net cash provided by (used
in) operating activities (2.0) 120.6 9.6 - 128.2
--------------- ------------------ ----------------- ------------------ ------------------
Cash Flows from Investing Activities
Additions to property, plant and
equipment (0.8) (59.5) (4.1) - (64.4)
Investments in and advances to
affiliates, net of dividends 72.5 (56.9) (15.6) - -
Miscellaneous investments and
other, net (4.2) 4.1 (1.8) - (10.1)
--------------- ------------------ ----------------- ------------------ ------------------
Net cash provided by (used
in) investing activities 67.5 (120.5) (21.5) - (74.5)
--------------- ------------------ ----------------- ------------------ ------------------
Cash Flows from Financing Activities
Repayments of long-term
borrowings (33.5) - - - (33.5)
Change in short-term borrowings - - (2.8) - (2.8)
Common dividends (10.2) - - - (10.2)
Proceeds from issuance of common
stock under various employee
and shareholder plans 20.1 - - - 20.1
Acquisitions of treasury stock (74.0) - - - (74.0)
Other, net - - 0.1 - 0.1
--------------- ------------------ ----------------- ------------------ ------------------
Net cash provided by (used
in) financing activities (97.6) - (2.7) - (100.3)
--------------- ------------------ ----------------- ------------------ ------------------
Net Change in Cash and Temporary
Investments (32.1) 0.1 (14.6) - (46.6)
Cash and Temporary Investments -
Beginning of Period 52.7 0.4 30.0 - 83.1
--------------- ------------------ ----------------- ------------------ ------------------
Cash and Temporary Investments -
End of Period $ 20.6 $ 0.5 $ 15.4 $ - $ 36.5
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CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------------------------------------------------------------
For the Six Months Ended July 1, 2001
------------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
--------------- ------------------ ----------------- ------------------ ------------------
Cash Flows from Operating Activities
Net earnings (loss) $ (143.6) $ 41.2 $ (235.1) $ 193.9 $ (143.6)
Noncash charges to net earnings:
Depreciation and amortization 1.0 64.0 12.1 - 77.1
Business consolidation costs - 16.0 235.2 - 251.2
Deferred income taxes (15.1) 22.5 0.8 - 8.2
Equity in net results of
subsidiaries 193.9 - - (193.9) -
Other, net 5.0 (20.5) (1.5) - (17.0)
Changes in working capital
components (51.3) (122.3) (15.8) - (189.4)
--------------- ------------------ ----------------- ------------------ ------------------
Net cash provided by (used
in) operating activities (10.1) 0.9 (4.3) - (13.5)
--------------- ------------------ ----------------- ------------------ ------------------
Cash Flows from Investing Activities
Additions to property, plant and
equipment (1.4) (26.7) (9.1) - (37.2)
Investments in and advances to
affiliates, net of dividends 7.9 9.1 (17.0) - -
Incentive loan receipts and
other, net (1.6) 16.9 2.3 - 17.6
--------------- ------------------ ----------------- ------------------ ------------------
Net cash provided by (used
in) investing activities 4.9 (0.7) (23.8) - (19.6)
--------------- ------------------ ----------------- ------------------ ------------------
Cash Flows from Financing Activities
Long-term borrowings 55.0 - - - 55.0
Repayments of long-term
borrowings (26.0) - - - (26.0)
Change in short-term borrowings - - 31.9 - 31.9
Common and preferred dividends (10.2) - - - (10.2)
Proceeds from issuance of common
stock under various employee
and shareholder plans 16.6 - - - 16.6
Acquisitions of treasury stock (32.6) - - - (32.6)
Other, net (2.4) - 0.1 - (2.3)
--------------- ------------------ ----------------- ------------------ ------------------
Net cash provided by
financing activities 0.4 - 32.0 - 32.4
--------------- ------------------ ----------------- ------------------ ------------------
Net Change in Cash and Temporary
Investments (4.8) 0.2 3.9 - (0.7)
Cash and Temporary Investments -
Beginning of Period 12.3 0.2 13.1 - 25.6
--------------- ------------------ ----------------- ------------------ ------------------
Cash and Temporary Investments -
End of Period $ 7.5 $ 0.4 $ 17.0 $ - $ 24.9
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