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Previous: BALL CORP, 10-Q, 2000-08-16 |
Next: BALL CORP, 10-Q, EX-27.1, 2000-08-16 |
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 July 2, 2000, and
December 31, 1999, and for the six-month periods ended July 2, 2000, and July 4,
1999 (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.
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET
----------------------------------------------------------------------------------------
July 2, 2000
----------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets
Cash and temporary investments $ 11.6 $ 0.3 $ 22.9 $ - $ 34.8
Accounts receivable, net 3.2 267.3 82.7 - 353.2
Inventories, net - 455.9 132.3 - 588.2
Deferred income tax benefits and
prepaid expenses 170.8 93.4 12.0 (193.6) 82.6
---------------- ---------------- ---------------- ---------------- ----------------
Total current assets 185.6 816.9 249.9 (193.6) 1,058.8
---------------- ---------------- ---------------- ---------------- ----------------
Property, plant and equipment, at cost 25.5 1,538.8 340.4 - 1,904.7
Accumulated depreciation (14.4) (744.8) (105.7) - (864.9)
---------------- ---------------- ---------------- ---------------- ----------------
11.1 794.0 234.7 - 1,039.8
---------------- ---------------- ---------------- ---------------- ----------------
Investments in subsidiaries 1,404.8 339.7 9.8 (1,754.3) -
Investments in affiliates 7.7 1.9 56.8 - 66.4
Goodwill, net - 345.1 108.4 - 453.5
Other assets 84.9 33.2 23.0 - 141.1
---------------- ---------------- ---------------- ---------------- ----------------
Total Assets $ 1,694.1 $ 2,330.8 $ 682.6 $ (1,947.9) $ 2,759.6
================ ================ ================ ================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 79.7 $ - $ 80.8 $ - $ 160.5
Accounts payable 7.5 266.6 84.7 - 358.8
Salaries and wages 10.5 77.2 7.4 - 95.1
Other current liabilities 33.7 226.5 38.9 (193.6) 105.5
---------------- ---------------- ---------------- ---------------- ----------------
Total current liabilities 131.4 570.3 211.8 (193.6) 719.9
Long-term debt 1,097.5 10.1 - - 1,107.6
Intercompany borrowings (312.5) 227.9 84.6 - -
Employee benefit obligations,
deferred income taxes and other 114.3 83.8 55.3 - 253.4
---------------- ---------------- ---------------- ---------------- ----------------
Total liabilities 1,030.7 892.1 351.7 (193.6) 2,080.9
---------------- ---------------- ---------------- ---------------- ----------------
Contingencies
Minority interests - - 15.3 - 15.3
---------------- ---------------- ---------------- ---------------- ----------------
Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock 54.9 - - - 54.9
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (15.7) - - - (15.7)
---------------- ---------------- ---------------- ---------------- ----------------
Preferred shareholders' equity 39.2 - 179.6 (179.6) 39.2
---------------- ---------------- ---------------- ---------------- ----------------
Common stock 434.5 1,155.9 240.3 (1,396.2) 434.5
Retained earnings (deficit) 469.3 284.6 (79.4) (205.2) 469.3
Accumulated other comprehensive loss (29.7) (1.8) (24.9) 26.7 (29.7)
Treasury stock, at cost (249.9) - - - (249.9)
---------------- ---------------- ---------------- ---------------- ----------------
Common shareholders' equity 624.2 1,438.7 136.0 (1,574.7) 624.2
---------------- ---------------- ---------------- ---------------- ----------------
Total shareholders' equity 663.4 1,438.7 315.6 (1,754.3) 663.4
---------------- ---------------- ---------------- ---------------- ----------------
Total Liabilities and Shareholders'
Equity $ 1,694.1 $ 2,330.8 $ 682.6 $ (1,947.9) $ 2,759.6
================ ================ ================ ================ ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET
----------------------------------------------------------------------------------------
December 31, 1999
----------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets
Cash and temporary investments $ 13.6 $ 0.2 $ 22.0 $ - $ 35.8
Accounts receivable, net 4.1 151.7 64.4 - 220.2
Inventories, net - 452.1 113.8 - 565.9
Deferred income tax benefits and
prepaid expenses 129.2 94.8 13.0 (163.1) 73.9
---------------- ---------------- ---------------- ---------------- ----------------
Total current assets 146.9 698.8 213.2 (163.1) 895.8
---------------- ---------------- ---------------- ---------------- ----------------
Property, plant and equipment, at cost 25.4 1,525.5 383.7 - 1,934.6
Accumulated depreciation (13.5) (697.5) (102.4) - (813.4)
---------------- ---------------- ---------------- ---------------- ----------------
11.9 828.0 281.3 - 1,121.2
---------------- ---------------- ---------------- ---------------- ----------------
Investments in subsidiaries 1,412.4 337.7 10.3 (1,760.4) -
Investments in affiliates 9.0 2.3 70.0 - 81.3
Goodwill, net - 365.2 117.7 - 482.9
Other assets 88.9 37.5 24.5 - 150.9
---------------- ---------------- ---------------- ---------------- ----------------
Total Assets $ 1,669.1 $ 2,269.5 $ 717.0 $ (1,923.5) $ 2,732.1
================ ================ ================ ================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt and current portion
of long-term debt $ 46.8 $ - $ 57.2 $ - $ 104.0
Accounts payable 4.5 285.3 55.7 - 345.5
Salaries and wages 7.3 99.1 8.3 - 114.7
Other current liabilities 35.0 193.3 40.7 (163.1) 105.9
---------------- ---------------- ---------------- ---------------- ----------------
Total current liabilities 93.6 577.7 161.9 (163.1) 670.1
Long-term debt 1,068.7 24.0 - - 1,092.7
Intercompany borrowings (302.6) 199.1 103.5 - -
Employee benefit obligations,
deferred income taxes and other 118.5 83.1 57.1 - 258.7
---------------- ---------------- ---------------- ---------------- ----------------
Total liabilities 978.2 883.9 322.5 (163.1) 2,021.5
---------------- ---------------- ---------------- ---------------- ----------------
Contingencies
Minority interests - - 19.7 - 19.7
---------------- ---------------- ---------------- ---------------- ----------------
Shareholders' Equity:
Series B ESOP Convertible Preferred
Stock 56.2 - - - 56.2
Convertible preferred stock - - 179.6 (179.6) -
Unearned compensation - ESOP (20.5) - - - (20.5)
---------------- ---------------- ---------------- ---------------- ----------------
Preferred shareholders' equity 35.7 - 179.6 (179.6) 35.7
---------------- ---------------- ---------------- ---------------- ----------------
Common stock 413.0 1,155.7 240.9 (1,396.6) 413.0
Retained earnings (deficit) 481.2 231.2 (23.7) (207.5) 481.2
Accumulated other comprehensive loss (26.7) (1.3) (22.0) 23.3 (26.7)
Treasury stock, at cost (212.3) - - - (212.3)
---------------- ---------------- ---------------- ---------------- ----------------
Common shareholders' equity 655.2 1,385.6 195.2 (1,580.8) 655.2
---------------- ---------------- ---------------- ---------------- ----------------
Total shareholders' equity 690.9 1,385.6 374.8 (1,760.4) 690.9
---------------- ---------------- ---------------- ---------------- ----------------
Total Liabilities and Shareholders'
Equity $ 1,669.1 $ 2,269.5 $ 717.0 $ (1,923.5) $ 2,732.1
================ ================ ================ ================ ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF EARNINGS
----------------------------------------------------------------------------------------
For the Six Months Ended July 2, 2000
----------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
Net sales $ - $ 1,678.2 $ 216.9 $ (116.3) $ 1,778.8
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 1,419.4 179.4 (116.3) 1,482.5
Depreciation and amortization 1.1 63.4 14.8 - 79.3
Business consolidation costs 2.3 22.1 59.0 - 83.4
Selling and administrative expenses 5.2 47.1 13.7 - 66.0
Receivable securitization fees and
product development - 7.3 0.1 - 7.4
Interest expense 38.2 6.9 2.1 - 47.2
Equity in earnings of subsidiaries (4.1) - - 4.1 -
Corporate allocations (25.3) 25.3 - - -
---------------- ---------------- ---------------- ---------------- ----------------
17.4 1,591.5 269.1 (112.2) 1,765.8
---------------- ---------------- ---------------- ---------------- ----------------
Earnings (loss) before taxes (17.4) 86.7 (52.2) (4.1) 13.0
Provision for taxes 22.2 (33.0) 3.4 - (7.4)
Minority interests - - 2.4 - 2.4
Equity in earnings of affiliates (0.2) (0.3) (2.9) - (3.4)
---------------- ---------------- ---------------- ---------------- ----------------
Net earnings (loss) 4.6 53.4 (49.3) (4.1) 4.6
Preferred dividends, net of tax (1.3) - - - (1.3)
---------------- ---------------- ---------------- ---------------- ----------------
Earnings (loss) attributable to common
shareholders $ 3.3 $ 53.4 $ (49.3) $ (4.1) $ 3.3
================ ================ ================ ================ ================
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF EARNINGS
----------------------------------------------------------------------------------------
For the Six Months Ended July 4, 1999
----------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
Net sales $ - $ 1,689.3 $ 224.7 $ (114.7) $ 1,799.3
Costs and expenses
Cost of sales (excluding
depreciation and amortization) - 1,438.6 185.9 (114.7) 1,509.8
Depreciation and amortization 1.5 65.0 14.7 - 81.2
Selling and administrative expenses 7.8 48.5 11.4 - 67.7
Receivable securitization fees and
product development - 6.7 0.1 - 6.8
Interest expense 26.3 23.9 5.3 - 55.5
Equity in earnings of subsidiaries (53.0) - - 53.0 -
Corporate allocations (26.1) 26.1 - - -
---------------- ---------------- ---------------- ---------------- ----------------
(43.5) 1,608.8 217.4 (61.7) 1,721.0
---------------- ---------------- ---------------- ---------------- ----------------
Earnings (loss) before taxes 43.5 80.5 7.3 (53.0) 78.3
Provision for taxes 4.2 (29.8) (4.1) - (29.7)
Minority interests - - (0.5) - (0.5)
Equity in earnings of affiliates - - (0.4) - (0.4)
---------------- ---------------- ---------------- ---------------- ----------------
Net earnings (loss) 47.7 50.7 2.3 (53.0) 47.7
Preferred dividends, net of tax (1.4) - - - (1.4)
---------------- ---------------- ---------------- ---------------- ----------------
Earnings (loss) attributable to common
shareholders $ 46.3 $ 50.7 $ 2.3 $ (53.0) $ 46.3
================ ================ ================ ================ ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------------------------------------------------
For the Six Months Ended July 2, 2000
----------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
Cash Flows from Operating Activities
Net earnings (loss) $ 4.6 $ 53.4 $ (49.2) $ (4.2) $ 4.6
Noncash charges to net earnings:
Depreciation and amortization 1.1 63.4 14.8 - 79.3
Business consolidation costs 2.3 22.1 56.9 - 81.3
Deferred income taxes (2.8) (4.3) (6.1) - (13.2)
Equity in earnings of subsidiaries (4.2) - - 4.2 -
Other, net 3.2 (6.2) 0.9 - (2.1)
Changes in working capital
components (36.7) (135.4) (18.0) - (190.1)
---------------- ---------------- ---------------- ---------------- ----------------
Net cash provided by (used in)
operating activities (32.5) (7.0) (0.7) - (40.2)
---------------- ---------------- ---------------- ---------------- ----------------
Cash Flows from Investing Activities
Additions to property, plant and
equipment (0.5) (40.7) (5.0) - (46.2)
Investments in and advances to
affiliates, net (9.9) 28.8 (18.9) - -
Other, net 3.0 32.9 2.5 - 38.4
---------------- ---------------- ---------------- ---------------- ----------------
Net cash provided by (used in)
investing activities (7.4) 21.0 (21.4) - (7.8)
---------------- ---------------- ---------------- ---------------- ----------------
Cash Flows from Financing Activities
Long-term borrowings 60.0 - - - 60.0
Repayments of long-term borrowings (18.5) (13.9) - - (32.4)
Change in short-term borrowings 25.0 - 24.1 - 49.1
Common and preferred dividends (10.9) - - - (10.9)
Proceeds from issuance of common
stock under various employee and
shareholder plans 21.3 - - - 21.3
Acquisitions of treasury stock (37.6) - - - (37.6)
Other, net (1.4) - (1.1) - (2.5)
---------------- ---------------- ---------------- ---------------- ----------------
Net cash provided by (used in)
financing activities 37.9 (13.9) 23.0 - 47.0
---------------- ---------------- ---------------- ---------------- ----------------
Net Change in Cash and Temporary
Investments (2.0) 0.1 0.9 - (1.0)
Cash and Temporary Investments -
Beginning of Period 13.6 0.2 22.0 - 35.8
---------------- ---------------- ---------------- ---------------- ----------------
Cash and Temporary Investments -
End of Period $ 11.6 $ 0.3 $ 22.9 $ - $ 34.8
================ ================ ================ ================ ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------------------------------------------------
For the Six Months Ended July 4, 1999
----------------------------------------------------------------------------------------
Ball Guarantor Non-Guarantor Eliminating Consolidated
Corporation Subsidiaries Subsidiaries Adjustments Total
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
Cash Flows from Operating Activities
Net earnings (loss) $ 47.7 $ 50.7 $ 2.3 $ (53.0) $ 47.7
Noncash charges to net earnings:
Depreciation and amortization 1.5 65.0 14.7 - 81.2
Equity in earnings of subsidiaries (53.0) - - 53.0 -
Other, net 11.5 12.8 1.9 - 26.2
Changes in working capital
components (41.9) (107.7) 1.7 - (147.9)
---------------- ---------------- ---------------- ---------------- ----------------
Net cash provided by (used in)
operating activities (34.2) 20.8 20.6 - 7.2
---------------- ---------------- ---------------- ---------------- ----------------
Cash Flows from Investing Activities
Additions to property, plant and
equipment (0.4) (34.0) (10.0) - (44.4)
Investments in and advances to
affiliates, net (50.6) 12.1 38.5 - -
Other, net 2.5 0.7 2.6 - 5.8
---------------- ---------------- ---------------- ---------------- ----------------
Net cash provided by (used in)
investing activities (48.5) (21.2) 31.1 - (38.6)
---------------- ---------------- ---------------- ---------------- ----------------
Cash Flows from Financing Activities
Long-term borrowings 100.0 - - - 100.0
Repayments of long-term borrowings (11.0) - (30.5) (41.5)
Change in short-term borrowings 17.0 - (7.5) - 9.5
Common and preferred dividends (11.3) - - - (11.3)
Net proceeds from issuance of common
stock under various employee and
shareholder plans 24.5 - - - 24.5
Acquisitions of treasury stock (33.7) - - - (33.7)
Other, net (1.5) - 0.1 - (1.4)
---------------- ---------------- ---------------- ---------------- ----------------
Net cash provided by (used in)
financing activities 84.0 - (37.9) - 46.1
---------------- ---------------- ---------------- ---------------- ----------------
Net Change in Cash and Temporary
Investments 1.3 (0.4) 13.8 - 14.7
Cash and Temporary Investments -
Beginning of Period 11.6 0.5 21.9 - 34.0
---------------- ---------------- ---------------- ---------------- ----------------
Cash and Temporary Investments -
End of Period $ 12.9 $ 0.1 $ 35.7 $ - $ 48.7
================ =============== ================ ================ ================
</TABLE>
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