EX-20 2 ex_20.htm EXHIBIT 20 ex_20.htm
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

 
 
 


   
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

 
 
 


   
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

 
 
 


   
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  


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