Guarantor Financial Information | 9 Months Ended |
Sep. 29, 2013 |
Guarantor Financial Information | ' |
19. GUARANTOR FINANCIAL INFORMATION |
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Appvion (the “Issuer”) has issued senior subordinated notes, as amended, which are guaranteed by PDC (the “Parent Guarantor”), as well as by Rose Holdings Limited, a 100%-owned subsidiary of Appvion (the “Subsidiary Guarantor”). |
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Presented below is condensed consolidating financial information for the Parent Guarantor, the Issuer, the Subsidiary Guarantor and a 100%-owned non-guarantor subsidiary (the “Non-Guarantor Subsidiary”) as of September 29, 2013 and December 29, 2012, and for the three and nine months ended September 29, 2013 and September 30, 2012. This financial information should be read in conjunction with the consolidated financial statements and other notes related thereto. |
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The second lien notes, as amended, place restrictions on the subsidiaries of the Issuer that would limit dividend distributions by these subsidiaries. |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
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CONDENSED CONSOLIDATING BALANCE SHEET |
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29-Sep-13 |
(unaudited) |
(dollars in thousands) |
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| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
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ASSETS | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | $ | 6,950 | | $ | — | | $ | 66 | | $ | — | | $ | 7,016 |
Accounts receivable, net | | | — | | | 80,847 | | | — | | | 2,886 | | | — | | | 83,733 |
Inventories | | | — | | | 94,003 | | | — | | | 1,500 | | | — | | | 95,503 |
Due from parent | | | — | | | 60,786 | | | — | | | — | | | -60,786 | | | — |
Other current assets | | | 60,786 | | | 9,206 | | | — | | | 297 | | | — | | | 70,289 |
Total current assets | | | 60,786 | | | 251,792 | | | — | | | 4,749 | | | -60,786 | | | 256,541 |
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Property, plant and equipment, net | | | — | | | 243,099 | | | — | | | 9 | | | — | | | 243,108 |
Investment in subsidiaries | | | -372,597 | | | 14,162 | | | — | | | — | | | 358,435 | | | — |
Other assets | | | 12 | | | 59,251 | | | — | | | 14 | | | — | | | 59,277 |
Total assets | | $ | -311,799 | | $ | 568,304 | | $ | — | | $ | 4,772 | | $ | 297,649 | | $ | 558,926 |
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LIABILITIES, REDEEMABLE COMMON STOCK, | | | | | | | | | | | | |
COMMON STOCK, PAID-IN CAPITAL, DUE | | | | | | | | | | | | |
FROM PARENT, ACCUMULATED DEFICIT AND | | | | | | | | | | | | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt | | $ | — | | $ | 50,070 | | $ | — | | $ | — | | $ | — | | $ | 50,070 |
Accounts payable | | | — | | | 61,731 | | | — | | | 38 | | | — | | | 61,769 |
Due to (from) parent and affiliated | | | | | | | | | | | | | | | | | | |
companies | | | 60,786 | | | 11,696 | | | — | | | -11,696 | | | -60,786 | | | — |
Other accrued liabilities | | | — | | | 112,385 | | | — | | | 2,268 | | | — | | | 114,653 |
Total current liabilities | | | 60,786 | | | 235,882 | | | — | | | -9,390 | | | -60,786 | | | 226,492 |
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Long-term debt | | | — | | | 508,192 | | | — | | | — | | | — | | | 508,192 |
Other long-term liabilities | | | — | | | 196,827 | | | — | | | — | | | — | | | 196,827 |
Redeemable common stock, | | | | | | | | | | | | | | | | | | |
common stock, paid-in capital, due | | | | | | | | | | | | | | | | | | |
from parent, accumulated | | | | | | | | | | | | | | | | | | |
deficit and accumulated | | | | | | | | | | | | | | | | | | |
other comprehensive income | | | -372,585 | | | -372,597 | | | — | | | 14,162 | | | 358,435 | | | -372,585 |
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Total liabilities, redeemable | | | | | | | | | | | | | | | | | | |
common stock, common | | | | | | | | | | | | | | | | | | |
stock, paid-in capital, due | | | | | | | | | | | | | | | | | | |
from parent, accumulated | | | | | | | | | | | | | | | | | | |
deficit and accumulated | | | | | | | | | | | | | | | | | | |
other comprehensive income | | $ | -311,799 | | $ | 568,304 | | $ | — | | $ | 4,772 | | $ | 297,649 | | $ | 558,926 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
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CONDENSED CONSOLIDATING BALANCE SHEET |
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29-Dec-12 |
(unaudited) |
(dollars in thousands) |
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| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
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ASSETS | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | $ | 1,593 | | $ | — | | $ | 258 | | $ | — | | $ | 1,851 |
Accounts receivable, net | | | — | | | 88,111 | | | — | | | 4,569 | | | — | | | 92,680 |
Inventories | | | — | | | 92,939 | | | — | | | 1,410 | | | — | | | 94,349 |
Due from parent | | | — | | | 65,000 | | | — | | | — | | | -65,000 | | | — |
Other current assets | | | 65,000 | | | 5,570 | | | — | | | 50 | | | — | | | 70,620 |
Total current assets | | | 65,000 | | | 253,213 | | | — | | | 6,287 | | | -65,000 | | | 259,500 |
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Property, plant and equipment, net | | | — | | | 243,254 | | | — | | | 11 | | | — | | | 243,265 |
Investment in subsidiaries | | | -352,909 | | | 14,216 | | | — | | | — | | | 338,693 | | | — |
Other assets | | | 12 | | | 58,298 | | | — | | | 15 | | | — | | | 58,325 |
Total assets | | $ | -287,897 | | $ | 568,981 | | $ | — | | $ | 6,313 | | $ | 273,693 | | $ | 561,090 |
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LIABILITIES, REDEEMABLE COMMON STOCK, | | | | | | | | | | | | |
COMMON STOCK, PAID-IN CAPITAL, DUE | | | | | | | | | | | | |
FROM PARENT, ACCUMULATED DEFICIT AND | | | | | | | | | | | | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt | | $ | — | | $ | 3,975 | | $ | — | | $ | — | | $ | — | | $ | 3,975 |
Accounts payable | | | — | | | 68,574 | | | — | | | 26 | | | — | | | 68,600 |
Due to (from) parent and affiliated | | | | | | | | | | | | | | | | | | |
companies | | | 65,000 | | | 10,799 | | | — | | | -10,799 | | | -65,000 | | | — |
Other accrued liabilities | | | — | | | 119,690 | | | — | | | 2,412 | | | — | | | 122,102 |
Total current liabilities | | | 65,000 | | | 203,038 | | | — | | | -8,361 | | | -65,000 | | | 194,677 |
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Long-term debt | | | — | | | 511,624 | | | — | | | — | | | — | | | 511,624 |
Other long-term liabilities | | | — | | | 207,228 | | | — | | | 458 | | | — | | | 207,686 |
Redeemable common stock, | | | | | | | | | | | | | | | | | | |
common stock, paid-in capital, due | | | | | | | | | | | | | | | | | | |
from parent, accumulated | | | | | | | | | | | | | | | | | | |
deficit and accumulated | | | | | | | | | | | | | | | | | | |
other comprehensive income | | | -352,897 | | | -352,909 | | | — | | | 14,216 | | | 338,693 | | | -352,897 |
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Total liabilities, redeemable | | | | | | | | | | | | | | | | | | |
common stock, common | | | | | | | | | | | | | | | | | | |
stock, paid-in capital, due | | | | | | | | | | | | | | | | | | |
from parent, accumulated | | | | | | | | | | | | | | | | | | |
deficit and accumulated | | | | | | | | | | | | | | | | | | |
other comprehensive income | | $ | -287,897 | | $ | 568,981 | | $ | — | | $ | 6,313 | | $ | 273,693 | | $ | 561,090 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
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CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS |
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FOR THE NINE MONTHS ENDED SEPTEMBER 29, 2013 |
(unaudited) |
(dollars in thousands) |
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| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
Net sales | | $ | — | | $ | 612,963 | | $ | — | | $ | 31,977 | | $ | -29,736 | | $ | 615,204 |
Cost of sales | | | — | | | 465,510 | | | — | | | 29,892 | | | -29,803 | | | 465,599 |
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Gross profit | | | — | | | 147,453 | | | — | | | 2,085 | | | 67 | | | 149,605 |
Selling, general and administrative | | | | | | | | | | | | | | | | | | |
expenses | | | — | | | 91,080 | | | — | | | 1,479 | | | — | | | 92,559 |
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Operating income | | | — | | | 56,373 | | | — | | | 606 | | | 67 | | | 57,046 |
Interest expense | | | — | | | 42,092 | | | — | | | — | | | — | | | 42,092 |
Interest income | | | — | | | -2 | | | — | | | — | | | — | | | -2 |
Debt extinguishment expense | | | — | | | 25,101 | | | — | | | — | | | — | | | 25,101 |
Loss in equity investments | | | 10,289 | | | 116 | | | — | | | — | | | -10,405 | | | — |
Other (income) expense | | | — | | | -576 | | | — | | | 509 | | | 129 | | | 62 |
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(Loss) income before income taxes | | | -10,289 | | | -10,358 | | | — | | | 97 | | | 10,343 | | | -10,207 |
(Benefit) provision for income | | | | | | | | | | | | | | | | | | |
taxes | | | — | | | -69 | | | — | | | 151 | | | — | | | 82 |
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Net loss | | | -10,289 | | | -10,289 | | | — | | | -54 | | | 10,343 | | | -10,289 |
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Other comprehensive loss | | | | | | | | | | | | | | | | | | |
Change in retirement plans | | | -1,192 | | | -1,192 | | | — | | | — | | | 1,192 | | | -1,192 |
Realized and unrealized losses | | | | | | | | | | | | | | | | | | |
on derivatives | | | -569 | | | -569 | | | — | | | — | | | 569 | | | -569 |
Total other comprehensive loss | | | -1,761 | | | -1,761 | | | — | | | — | | | 1,761 | | | -1,761 |
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Comprehensive loss | | $ | -12,050 | | $ | -12,050 | | $ | — | | $ | -54 | | $ | 12,104 | | $ | -12,050 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
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CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS |
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FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 |
(unaudited) |
(dollars in thousands) |
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| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
Net sales | | $ | — | | $ | 645,294 | | $ | — | | $ | 38,714 | | $ | -39,733 | | $ | 644,275 |
Cost of sales | | | — | | | 576,968 | | | — | | | 39,815 | | | -39,395 | | | 577,388 |
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Gross profit (loss) | | | — | | | 68,326 | | | — | | | -1,101 | | | -338 | | | 66,887 |
Selling, general and administrative | | | | | | | | | | | | | | | | | | |
expenses | | | — | | | 106,354 | | | — | | | 1,553 | | | — | | | 107,907 |
Environmental expense insurance | | | | | | | | | | | | | | | | | | |
recovery | | | — | | | -2,188 | | | — | | | — | | | — | | | -2,188 |
Restructuring | | | — | | | 27,175 | | | — | | | — | | | — | | | 27,175 |
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Operating loss | | | — | | | -63,015 | | | — | | | -2,654 | | | -338 | | | -66,007 |
Interest expense | | | — | | | 45,168 | | | — | | | — | | | -243 | | | 44,925 |
Interest income | | | — | | | -54 | | | — | | | -243 | | | 243 | | | -54 |
Loss in equity investments | | | 111,320 | | | 2,203 | | | — | | | — | | | -113,523 | | | — |
Other expense (income) | | | — | | | 971 | | | — | | | -468 | | | -207 | | | 296 |
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Loss before income taxes | | | -111,320 | | | -111,303 | | | — | | | -1,943 | | | 113,392 | | | -111,174 |
Provision for income taxes | | | — | | | 17 | | | — | | | 129 | | | — | | | 146 |
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Net loss | | | -111,320 | | | -111,320 | | | — | | | -2,072 | | | 113,392 | | | -111,320 |
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Other comprehensive loss | | | | | | | | | | | | | | | | | | |
Change in retirement plans | | | -5,310 | | | -5,310 | | | — | | | — | | | 5,310 | | | -5,310 |
Realized and unrealized losses | | | | | | | | | | | | | | | | | | |
on derivatives | | | -2,292 | | | -2,292 | | | — | | | — | | | 2,292 | | | -2,292 |
Total other comprehensive loss | | | -7,602 | | | -7,602 | | | — | | | — | | | 7,602 | | | -7,602 |
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Comprehensive loss | | $ | -118,922 | | $ | -118,922 | | $ | — | | $ | -2,072 | | $ | 120,994 | | $ | -118,922 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
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CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
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FOR THE THREE MONTHS ENDED SEPTEMBER 29, 2013 |
(unaudited) |
(dollars in thousands) |
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| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
Net sales | | $ | — | | $ | 202,806 | | $ | — | | $ | 10,140 | | $ | -10,076 | | $ | 202,870 |
Cost of sales | | | — | | | 154,494 | | | — | | | 9,965 | | | -10,173 | | | 154,286 |
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Gross profit | | | — | | | 48,312 | | | — | | | 175 | | | 97 | | | 48,584 |
Selling, general and administrative | | | | | | | | | | | | | | | | | | |
expenses | | | — | | | 29,391 | | | — | | | 468 | | | — | | | 29,859 |
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Operating income (loss) | | | — | | | 18,921 | | | — | | | -293 | | | 97 | | | 18,725 |
Interest expense | | | — | | | 12,343 | | | — | | | — | | | — | | | 12,343 |
Interest income | | | — | | | -2 | | | — | | | — | | | — | | | -2 |
Debt extinguishment expense | | | — | | | 334 | | | — | | | — | | | — | | | 334 |
(Income) loss in equity | | | | | | | | | | | | | | | | | | |
investments | | | -6,463 | | | 92 | | | — | | | — | | | 6,371 | | | — |
Other income | | | — | | | -194 | | | — | | | -228 | | | 104 | | | -318 |
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Income (loss) before income taxes | | | 6,463 | | | 6,348 | | | — | | | -65 | | | -6,378 | | | 6,368 |
(Benefit) provision for income | | | | | | | | | | | | | | | | | | |
taxes | | | — | | | -115 | | | — | | | 20 | | | — | | | -95 |
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Net income (loss) | | | 6,463 | | | 6,463 | | | — | | | -85 | | | -6,378 | | | 6,463 |
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Other comprehensive loss | | | | | | | | | | | | | | | | | | |
Change in retirement plans | | | -397 | | | -397 | | | — | | | — | | | 397 | | | -397 |
Realized and unrealized losses | | | | | | | | | | | | | | | | | | |
on derivatives | | | -1,581 | | | -1,581 | | | — | | | — | | | 1,581 | | | -1,581 |
Total other comprehensive loss | | | -1,978 | | | -1,978 | | | — | | | — | | | 1,978 | | | -1,978 |
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Comprehensive income (loss) | | $ | 4,485 | | $ | 4,485 | | $ | — | | $ | -85 | | $ | -4,400 | | $ | 4,485 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
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CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS |
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FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 |
(unaudited) |
(dollars in thousands) |
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| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
Net sales | | $ | — | | $ | 211,180 | | $ | — | | $ | 13,158 | | $ | -13,594 | | $ | 210,744 |
Cost of sales | | | — | | | 165,723 | | | — | | | 13,717 | | | -13,484 | | | 165,956 |
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Gross profit (loss) | | | — | | | 45,457 | | | — | | | -559 | | | -110 | | | 44,788 |
Selling, general and administrative | | | | | | | | | | | | | | | | | | |
expenses | | | — | | | 31,209 | | | — | | | 522 | | | — | | | 31,731 |
Environmental expense insurance | | | | | | | | | | | | | | | | | | |
recovery | | | — | | | -2,188 | | | — | | | — | | | — | | | -2,188 |
Restructuring | | | — | | | 703 | | | — | | | — | | | — | | | 703 |
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Operating income (loss) | | | — | | | 15,733 | | | — | | | -1,081 | | | -110 | | | 14,542 |
Interest expense | | | — | | | 14,901 | | | — | | | — | | | -69 | | | 14,832 |
Interest income | | | — | | | -42 | | | — | | | -69 | | | 69 | | | -42 |
(Income) loss in equity | | | | | | | | | | | | | | | | | | |
investments | | | -516 | | | 424 | | | — | | | — | | | 92 | | | — |
Other income | | | — | | | -31 | | | — | | | -608 | | | -131 | | | -770 |
| | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | 516 | | | 481 | | | — | | | -404 | | | -71 | | | 522 |
(Benefit) provision for income | | | | | | | | | | | | | | | | | | |
taxes | | | — | | | -35 | | | — | | | 41 | | | — | | | 6 |
| | | | | | | | | | | | | | | | | | |
Net income (loss) | | | 516 | | | 516 | | | — | | | -445 | | | -71 | | | 516 |
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Other comprehensive loss | | | | | | | | | | | | | | | | | | |
Change in retirement plans | | | -528 | | | -528 | | | — | | | — | | | 528 | | | -528 |
Realized and unrealized losses | | | | | | | | | | | | | | | | | | |
on derivatives | | | -1,523 | | | -1,523 | | | — | | | — | | | 1,523 | | | -1,523 |
Total other comprehensive loss | | | -2,051 | | | -2,051 | | | — | | | — | | | 2,051 | | | -2,051 |
| | | | | | | | | | | | | | | | | | |
Comprehensive loss | | $ | -1,535 | | $ | -1,535 | | $ | — | | $ | -445 | | $ | 1,980 | | $ | -1,535 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
| | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
| | | | | | | | | | | | | | | | | | |
FOR NINE MONTHS ENDED SEPTEMBER 29, 2013 |
(unaudited) |
(dollars in thousands) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
| | | | | | | | | | | | | | | | | | |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | |
Net loss | | $ | -10,289 | | $ | -10,289 | | $ | — | | $ | -54 | | $ | 10,343 | | $ | -10,289 |
Adjustments to reconcile net loss | | | | | | | | | | | | | | | | | | |
to net cash provided (used) | | | | | | | | | | | | | | | | | | |
by operating activities: | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | — | | | 22,811 | | | — | | | 2 | | | — | | | 22,813 |
Other | | | — | | | 11,279 | | | — | | | 509 | | | — | | | 11,788 |
Change in assets and liabilities, net | | | 15,935 | | | -24,773 | | | — | | | 248 | | | -10,343 | | | -18,933 |
Net cash provided (used) by | | | | | | | | | | | | | | | | | | |
operating activities | | | 5,646 | | | -972 | | | — | | | 705 | | | — | | | 5,379 |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | |
Proceeds from sale of equipment | | | — | | | 6 | | | — | | | — | | | — | | | 6 |
Additions to property, plant | | | | | | | | | | | | | | | | | | |
and equipment | | | — | | | -20,266 | | | — | | | — | | | — | | | -20,266 |
| | | | | | | | | | | | | | | | | | |
Net cash used by investing activities | | | — | | | -20,260 | | | — | | | — | | | — | | | -20,260 |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | |
Payments of senior secured | | | | | | | | | | | | | | | | | | |
first lien notes payable | | | — | | | -305,000 | | | — | | | — | | | — | | | -305,000 |
Proceeds from first lien | | | | | | | | | | | | | | | | | | |
term loan | | | — | | | 331,650 | | | — | | | — | | | — | | | 331,650 |
Payment of industrial | | | | | | | | | | | | | | | | | | |
development bond | | | — | | | -2,650 | | | — | | | — | | | — | | | -2,650 |
Debt acquisition costs | | | — | | | -7,235 | | | — | | | — | | | — | | | -7,235 |
Payments relating to capital | | | | | | | | | | | | | | | | | | |
lease obligations | | | — | | | -67 | | | — | | | — | | | — | | | -67 |
Proceeds from old revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | — | | | 155,300 | | | — | | | — | | | — | | | 155,300 |
Payments of old revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | — | | | -159,000 | | | — | | | — | | | — | | | -159,000 |
Proceeds from new revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | | | | 129,100 | | | | | | | | | | | | 129,100 |
Payments of new revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | | | | -109,100 | | | | | | | | | | | | -109,100 |
Payments of State of Ohio loans | | | — | | | -987 | | | — | | | — | | | — | | | -987 |
Due to (from) parent and affiliated | | | | | | | | | | | | | | | | | | |
companies, net | | | 3,424 | | | -2,527 | | | — | | | -897 | | | — | | | — |
Proceeds from issuance of | | | | | | | | | | | | | | | | | | |
redeemable common stock | | | 1,651 | | | — | | | — | | | — | | | — | | | 1,651 |
Payments to redeem common stock | | | -10,721 | | | — | | | — | | | — | | | — | | | -10,721 |
Decrease in cash overdraft | | | — | | | -2,886 | | | — | | | — | | | — | | | -2,886 |
| | | | | | | | | | | | | | | | | | |
Net cash (used) provided by | | | | | | | | | | | | | | | | | | |
financing activities | | | -5,646 | | | 26,598 | | | — | | | -897 | | | — | | | 20,055 |
| | | | | | | | | | | | | | | | | | |
Effect of foreign exchange rate | | | | | | | | | | | | | | | | | | |
changes on cash and cash equivalents | | | — | | | -9 | | | — | | | — | | | — | | | -9 |
Change in cash and cash equivalents | | | — | | | 5,357 | | | — | | | -192 | | | — | | | 5,165 |
Cash and cash equivalents at | | | | | | | | | | | | | | | | | | |
beginning of period | | | — | | | 1,593 | | | — | | | 258 | | | — | | | 1,851 |
Cash and cash equivalents at | | | | | | | | | | | | | | | | | | |
end of period | | $ | — | | $ | 6,950 | | $ | — | | $ | 66 | | $ | — | | $ | 7,016 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
| | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
| | | | | | | | | | | | | | | | | | |
FOR NINE MONTHS ENDED SEPTEMBER 30, 2012 |
(unaudited) |
(dollars in thousands) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
| | | | | | | | | | | | | | | | | | |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | |
Net loss | | $ | -111,320 | | $ | -111,320 | | $ | — | | $ | -2,072 | | $ | 113,392 | | $ | -111,320 |
Adjustments to reconcile net loss | | | | | | | | | | | | | | | | | | |
to net cash provided (used) | | | | | | | | | | | | | | | | | | |
by operating activities: | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | — | | | 91,166 | | | — | | | 3 | | | — | | | 91,169 |
Other | | | — | | | 15,392 | | | — | | | -468 | | | — | | | 14,924 |
Change in assets and liabilities, net | | | 118,309 | | | 10,355 | | | — | | | -358 | | | -113,392 | | | 14,914 |
Net cash provided (used) by | | | | | | | | | | | | | | | | | | |
operating activities | | | 6,989 | | | 5,593 | | | — | | | -2,895 | | | — | | | 9,687 |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | |
Proceeds from sale of equipment | | | — | | | 20 | | | — | | | — | | | — | | | 20 |
Additions to property, plant | | | | | | | | | | | | | | | | | | |
and equipment | | | — | | | -9,015 | | | — | | | — | | | — | | | -9,015 |
| | | | | | | | | | | | | | | | | | |
Net cash used by investing activities | | | — | | | -8,995 | | | — | | | — | | | — | | | -8,995 |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | |
Payments relating to capital | | | | | | | | | | | | | | | | | | |
lease obligations | | | — | | | -46 | | | — | | | — | | | — | | | -46 |
Proceeds from revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | | | | 190,300 | | | | | | | | | | | | 190,300 |
Payments of revolving line of credit | | | | | | -182,750 | | | | | | | | | | | | -182,750 |
Payments of State of Ohio loans | | | — | | | -935 | | | — | | | — | | | — | | | -935 |
Proceeds from municipal debt | | | — | | | 300 | | | — | | | — | | | — | | | 300 |
Due (from) to parent and affiliated | | | | | | | | | | | | | | | | | | |
companies, net | | | -87 | | | -2,576 | | | — | | | 2,663 | | | — | | | — |
Proceeds from issuance of | | | | | | | | | | | | | | | | | | |
redeemable common stock | | | 1,677 | | | — | | | — | | | — | | | — | | | 1,677 |
Payments to redeem common stock | | | -8,579 | | | — | | | — | | | — | | | — | | | -8,579 |
Decrease in cash overdraft | | | — | | | -5,479 | | | — | | | — | | | — | | | -5,479 |
| | | | | | | | | | | | | | | | | | |
Net cash (used) provided by | | | | | | | | | | | | | | | | | | |
financing activities | | | -6,989 | | | -1,186 | | | — | | | 2,663 | | | — | | | -5,512 |
| | | | | | | | | | | | | | | | | | |
Effect of foreign exchange rate | | | | | | | | | | | | | | | | | | |
changes on cash and cash equivalents | | | — | | | 22 | | | — | | | — | | | — | | | 22 |
Change in cash and cash equivalents | | | — | | | -4,566 | | | — | | | -232 | | | — | | | -4,798 |
Cash and cash equivalents at | | | | | | | | | | | | | | | | | | |
beginning of period | | | — | | | 6,688 | | | — | | | 553 | | | — | | | 7,241 |
Cash and cash equivalents at | | | | | | | | | | | | | | | | | | |
end of period | | $ | — | | $ | 2,122 | | $ | — | | $ | 321 | | $ | — | | $ | 2,443 |
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Appvion, Inc. [Member] | ' |
Guarantor Financial Information | ' |
19. GUARANTOR FINANCIAL INFORMATION |
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Appvion (the “Issuer”) has issued senior subordinated notes, as amended, which are guaranteed by PDC (the “Parent Guarantor”), as well as by Rose Holdings Limited, a 100%-owned subsidiary of Appvion (the “Subsidiary Guarantor”). |
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Presented below is condensed consolidating financial information for the Parent Guarantor, the Issuer, the Subsidiary Guarantor and a 100%-owned non-guarantor subsidiary (the “Non-Guarantor Subsidiary”) as of September 29, 2013 and December 29, 2012, and for the three and nine months ended September 29, 2013 and September 30, 2012. This financial information should be read in conjunction with the consolidated financial statements and other notes related thereto. |
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The second lien notes, as amended, place restrictions on the subsidiaries of the Issuer that would limit dividend distributions by these subsidiaries. |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
| | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATING BALANCE SHEET |
| | | | | | | | | | | | | | | | | | |
29-Sep-13 |
(unaudited) |
(dollars in thousands) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
| | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | $ | 6,950 | | $ | — | | $ | 66 | | $ | — | | $ | 7,016 |
Accounts receivable, net | | | — | | | 80,847 | | | — | | | 2,886 | | | — | | | 83,733 |
Inventories | | | — | | | 94,003 | | | — | | | 1,500 | | | — | | | 95,503 |
Due from parent | | | — | | | 60,786 | | | — | | | — | | | -60,786 | | | — |
Other current assets | | | 60,786 | | | 9,206 | | | — | | | 297 | | | — | | | 70,289 |
Total current assets | | | 60,786 | | | 251,792 | | | — | | | 4,749 | | | -60,786 | | | 256,541 |
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Property, plant and equipment, net | | | — | | | 243,099 | | | — | | | 9 | | | — | | | 243,108 |
Investment in subsidiaries | | | -372,597 | | | 14,162 | | | — | | | — | | | 358,435 | | | — |
Other assets | | | 12 | | | 59,251 | | | — | | | 14 | | | — | | | 59,277 |
Total assets | | $ | -311,799 | | $ | 568,304 | | $ | — | | $ | 4,772 | | $ | 297,649 | | $ | 558,926 |
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LIABILITIES, REDEEMABLE COMMON STOCK, | | | | | | | | | | | | |
COMMON STOCK, PAID-IN CAPITAL, DUE | | | | | | | | | | | | |
FROM PARENT, ACCUMULATED DEFICIT AND | | | | | | | | | | | | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt | | $ | — | | $ | 50,070 | | $ | — | | $ | — | | $ | — | | $ | 50,070 |
Accounts payable | | | — | | | 61,731 | | | — | | | 38 | | | — | | | 61,769 |
Due to (from) parent and affiliated | | | | | | | | | | | | | | | | | | |
companies | | | 60,786 | | | 11,696 | | | — | | | -11,696 | | | -60,786 | | | — |
Other accrued liabilities | | | — | | | 112,385 | | | — | | | 2,268 | | | — | | | 114,653 |
Total current liabilities | | | 60,786 | | | 235,882 | | | — | | | -9,390 | | | -60,786 | | | 226,492 |
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Long-term debt | | | — | | | 508,192 | | | — | | | — | | | — | | | 508,192 |
Other long-term liabilities | | | — | | | 196,827 | | | — | | | — | | | — | | | 196,827 |
Redeemable common stock, | | | | | | | | | | | | | | | | | | |
common stock, paid-in capital, due | | | | | | | | | | | | | | | | | | |
from parent, accumulated | | | | | | | | | | | | | | | | | | |
deficit and accumulated | | | | | | | | | | | | | | | | | | |
other comprehensive income | | | -372,585 | | | -372,597 | | | — | | | 14,162 | | | 358,435 | | | -372,585 |
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Total liabilities, redeemable | | | | | | | | | | | | | | | | | | |
common stock, common | | | | | | | | | | | | | | | | | | |
stock, paid-in capital, due | | | | | | | | | | | | | | | | | | |
from parent, accumulated | | | | | | | | | | | | | | | | | | |
deficit and accumulated | | | | | | | | | | | | | | | | | | |
other comprehensive income | | $ | -311,799 | | $ | 568,304 | | $ | — | | $ | 4,772 | | $ | 297,649 | | $ | 558,926 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
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CONDENSED CONSOLIDATING BALANCE SHEET |
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29-Dec-12 |
(unaudited) |
(dollars in thousands) |
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| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
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ASSETS | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | $ | 1,593 | | $ | — | | $ | 258 | | $ | — | | $ | 1,851 |
Accounts receivable, net | | | — | | | 88,111 | | | — | | | 4,569 | | | — | | | 92,680 |
Inventories | | | — | | | 92,939 | | | — | | | 1,410 | | | — | | | 94,349 |
Due from parent | | | — | | | 65,000 | | | — | | | — | | | -65,000 | | | — |
Other current assets | | | 65,000 | | | 5,570 | | | — | | | 50 | | | — | | | 70,620 |
Total current assets | | | 65,000 | | | 253,213 | | | — | | | 6,287 | | | -65,000 | | | 259,500 |
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Property, plant and equipment, net | | | — | | | 243,254 | | | — | | | 11 | | | — | | | 243,265 |
Investment in subsidiaries | | | -352,909 | | | 14,216 | | | — | | | — | | | 338,693 | | | — |
Other assets | | | 12 | | | 58,298 | | | — | | | 15 | | | — | | | 58,325 |
Total assets | | $ | -287,897 | | $ | 568,981 | | $ | — | | $ | 6,313 | | $ | 273,693 | | $ | 561,090 |
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LIABILITIES, REDEEMABLE COMMON STOCK, | | | | | | | | | | | | |
COMMON STOCK, PAID-IN CAPITAL, DUE | | | | | | | | | | | | |
FROM PARENT, ACCUMULATED DEFICIT AND | | | | | | | | | | | | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt | | $ | — | | $ | 3,975 | | $ | — | | $ | — | | $ | — | | $ | 3,975 |
Accounts payable | | | — | | | 68,574 | | | — | | | 26 | | | — | | | 68,600 |
Due to (from) parent and affiliated | | | | | | | | | | | | | | | | | | |
companies | | | 65,000 | | | 10,799 | | | — | | | -10,799 | | | -65,000 | | | — |
Other accrued liabilities | | | — | | | 119,690 | | | — | | | 2,412 | | | — | | | 122,102 |
Total current liabilities | | | 65,000 | | | 203,038 | | | — | | | -8,361 | | | -65,000 | | | 194,677 |
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Long-term debt | | | — | | | 511,624 | | | — | | | — | | | — | | | 511,624 |
Other long-term liabilities | | | — | | | 207,228 | | | — | | | 458 | | | — | | | 207,686 |
Redeemable common stock, | | | | | | | | | | | | | | | | | | |
common stock, paid-in capital, due | | | | | | | | | | | | | | | | | | |
from parent, accumulated | | | | | | | | | | | | | | | | | | |
deficit and accumulated | | | | | | | | | | | | | | | | | | |
other comprehensive income | | | -352,897 | | | -352,909 | | | — | | | 14,216 | | | 338,693 | | | -352,897 |
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Total liabilities, redeemable | | | | | | | | | | | | | | | | | | |
common stock, common | | | | | | | | | | | | | | | | | | |
stock, paid-in capital, due | | | | | | | | | | | | | | | | | | |
from parent, accumulated | | | | | | | | | | | | | | | | | | |
deficit and accumulated | | | | | | | | | | | | | | | | | | |
other comprehensive income | | $ | -287,897 | | $ | 568,981 | | $ | — | | $ | 6,313 | | $ | 273,693 | | $ | 561,090 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
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CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS |
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FOR THE NINE MONTHS ENDED SEPTEMBER 29, 2013 |
(unaudited) |
(dollars in thousands) |
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| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
Net sales | | $ | — | | $ | 612,963 | | $ | — | | $ | 31,977 | | $ | -29,736 | | $ | 615,204 |
Cost of sales | | | — | | | 465,510 | | | — | | | 29,892 | | | -29,803 | | | 465,599 |
| | | | | | | | | | | | | | | | | | |
Gross profit | | | — | | | 147,453 | | | — | | | 2,085 | | | 67 | | | 149,605 |
Selling, general and administrative | | | | | | | | | | | | | | | | | | |
expenses | | | — | | | 91,080 | | | — | | | 1,479 | | | — | | | 92,559 |
| | | | | | | | | | | | | | | | | | |
Operating income | | | — | | | 56,373 | | | — | | | 606 | | | 67 | | | 57,046 |
Interest expense | | | — | | | 42,092 | | | — | | | — | | | — | | | 42,092 |
Interest income | | | — | | | -2 | | | — | | | — | | | — | | | -2 |
Debt extinguishment expense | | | — | | | 25,101 | | | — | | | — | | | — | | | 25,101 |
Loss in equity investments | | | 10,289 | | | 116 | | | — | | | — | | | -10,405 | | | — |
Other (income) expense | | | — | | | -576 | | | — | | | 509 | | | 129 | | | 62 |
| | | | | | | | | | | | | | | | | | |
(Loss) income before income taxes | | | -10,289 | | | -10,358 | | | — | | | 97 | | | 10,343 | | | -10,207 |
(Benefit) provision for income | | | | | | | | | | | | | | | | | | |
taxes | | | — | | | -69 | | | — | | | 151 | | | — | | | 82 |
| | | | | | | | | | | | | | | | | | |
Net loss | | | -10,289 | | | -10,289 | | | — | | | -54 | | | 10,343 | | | -10,289 |
| | | | | | | | | | | | | | | | | | |
Other comprehensive loss | | | | | | | | | | | | | | | | | | |
Change in retirement plans | | | -1,192 | | | -1,192 | | | — | | | — | | | 1,192 | | | -1,192 |
Realized and unrealized losses | | | | | | | | | | | | | | | | | | |
on derivatives | | | -569 | | | -569 | | | — | | | — | | | 569 | | | -569 |
Total other comprehensive loss | | | -1,761 | | | -1,761 | | | — | | | — | | | 1,761 | | | -1,761 |
| | | | | | | | | | | | | | | | | | |
Comprehensive loss | | $ | -12,050 | | $ | -12,050 | | $ | — | | $ | -54 | | $ | 12,104 | | $ | -12,050 |
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| | | | | | | | | | | | | | | | | | |
PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
| | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS |
| | | | | | | | | | | | | | | | | | |
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 |
(unaudited) |
(dollars in thousands) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
Net sales | | $ | — | | $ | 645,294 | | $ | — | | $ | 38,714 | | $ | -39,733 | | $ | 644,275 |
Cost of sales | | | — | | | 576,968 | | | — | | | 39,815 | | | -39,395 | | | 577,388 |
| | | | | | | | | | | | | | | | | | |
Gross profit (loss) | | | — | | | 68,326 | | | — | | | -1,101 | | | -338 | | | 66,887 |
Selling, general and administrative | | | | | | | | | | | | | | | | | | |
expenses | | | — | | | 106,354 | | | — | | | 1,553 | | | — | | | 107,907 |
Environmental expense insurance | | | | | | | | | | | | | | | | | | |
recovery | | | — | | | -2,188 | | | — | | | — | | | — | | | -2,188 |
Restructuring | | | — | | | 27,175 | | | — | | | — | | | — | | | 27,175 |
| | | | | | | | | | | | | | | | | | |
Operating loss | | | — | | | -63,015 | | | — | | | -2,654 | | | -338 | | | -66,007 |
Interest expense | | | — | | | 45,168 | | | — | | | — | | | -243 | | | 44,925 |
Interest income | | | — | | | -54 | | | — | | | -243 | | | 243 | | | -54 |
Loss in equity investments | | | 111,320 | | | 2,203 | | | — | | | — | | | -113,523 | | | — |
Other expense (income) | | | — | | | 971 | | | — | | | -468 | | | -207 | | | 296 |
| | | | | | | | | | | | | | | | | | |
Loss before income taxes | | | -111,320 | | | -111,303 | | | — | | | -1,943 | | | 113,392 | | | -111,174 |
Provision for income taxes | | | — | | | 17 | | | — | | | 129 | | | — | | | 146 |
| | | | | | | | | | | | | | | | | | |
Net loss | | | -111,320 | | | -111,320 | | | — | | | -2,072 | | | 113,392 | | | -111,320 |
| | | | | | | | | | | | | | | | | | |
Other comprehensive loss | | | | | | | | | | | | | | | | | | |
Change in retirement plans | | | -5,310 | | | -5,310 | | | — | | | — | | | 5,310 | | | -5,310 |
Realized and unrealized losses | | | | | | | | | | | | | | | | | | |
on derivatives | | | -2,292 | | | -2,292 | | | — | | | — | | | 2,292 | | | -2,292 |
Total other comprehensive loss | | | -7,602 | | | -7,602 | | | — | | | — | | | 7,602 | | | -7,602 |
| | | | | | | | | | | | | | | | | | |
Comprehensive loss | | $ | -118,922 | | $ | -118,922 | | $ | — | | $ | -2,072 | | $ | 120,994 | | $ | -118,922 |
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PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
| | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
| | | | | | | | | | | | | | | | | | |
FOR THE THREE MONTHS ENDED SEPTEMBER 29, 2013 |
(unaudited) |
(dollars in thousands) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
Net sales | | $ | — | | $ | 202,806 | | $ | — | | $ | 10,140 | | $ | -10,076 | | $ | 202,870 |
Cost of sales | | | — | | | 154,494 | | | — | | | 9,965 | | | -10,173 | | | 154,286 |
| | | | | | | | | | | | | | | | | | |
Gross profit | | | — | | | 48,312 | | | — | | | 175 | | | 97 | | | 48,584 |
Selling, general and administrative | | | | | | | | | | | | | | | | | | |
expenses | | | — | | | 29,391 | | | — | | | 468 | | | — | | | 29,859 |
| | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | — | | | 18,921 | | | — | | | -293 | | | 97 | | | 18,725 |
Interest expense | | | — | | | 12,343 | | | — | | | — | | | — | | | 12,343 |
Interest income | | | — | | | -2 | | | — | | | — | | | — | | | -2 |
Debt extinguishment expense | | | — | | | 334 | | | — | | | — | | | — | | | 334 |
(Income) loss in equity | | | | | | | | | | | | | | | | | | |
investments | | | -6,463 | | | 92 | | | — | | | — | | | 6,371 | | | — |
Other income | | | — | | | -194 | | | — | | | -228 | | | 104 | | | -318 |
| | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | 6,463 | | | 6,348 | | | — | | | -65 | | | -6,378 | | | 6,368 |
(Benefit) provision for income | | | | | | | | | | | | | | | | | | |
taxes | | | — | | | -115 | | | — | | | 20 | | | — | | | -95 |
| | | | | | | | | | | | | | | | | | |
Net income (loss) | | | 6,463 | | | 6,463 | | | — | | | -85 | | | -6,378 | | | 6,463 |
| | | | | | | | | | | | | | | | | | |
Other comprehensive loss | | | | | | | | | | | | | | | | | | |
Change in retirement plans | | | -397 | | | -397 | | | — | | | — | | | 397 | | | -397 |
Realized and unrealized losses | | | | | | | | | | | | | | | | | | |
on derivatives | | | -1,581 | | | -1,581 | | | — | | | — | | | 1,581 | | | -1,581 |
Total other comprehensive loss | | | -1,978 | | | -1,978 | | | — | | | — | | | 1,978 | | | -1,978 |
| | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) | | $ | 4,485 | | $ | 4,485 | | $ | — | | $ | -85 | | $ | -4,400 | | $ | 4,485 |
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| | | | | | | | | | | | | | | | | | |
PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
| | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS |
| | | | | | | | | | | | | | | | | | |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 |
(unaudited) |
(dollars in thousands) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
Net sales | | $ | — | | $ | 211,180 | | $ | — | | $ | 13,158 | | $ | -13,594 | | $ | 210,744 |
Cost of sales | | | — | | | 165,723 | | | — | | | 13,717 | | | -13,484 | | | 165,956 |
| | | | | | | | | | | | | | | | | | |
Gross profit (loss) | | | — | | | 45,457 | | | — | | | -559 | | | -110 | | | 44,788 |
Selling, general and administrative | | | | | | | | | | | | | | | | | | |
expenses | | | — | | | 31,209 | | | — | | | 522 | | | — | | | 31,731 |
Environmental expense insurance | | | | | | | | | | | | | | | | | | |
recovery | | | — | | | -2,188 | | | — | | | — | | | — | | | -2,188 |
Restructuring | | | — | | | 703 | | | — | | | — | | | — | | | 703 |
| | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | — | | | 15,733 | | | — | | | -1,081 | | | -110 | | | 14,542 |
Interest expense | | | — | | | 14,901 | | | — | | | — | | | -69 | | | 14,832 |
Interest income | | | — | | | -42 | | | — | | | -69 | | | 69 | | | -42 |
(Income) loss in equity | | | | | | | | | | | | | | | | | | |
investments | | | -516 | | | 424 | | | — | | | — | | | 92 | | | — |
Other income | | | — | | | -31 | | | — | | | -608 | | | -131 | | | -770 |
| | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | 516 | | | 481 | | | — | | | -404 | | | -71 | | | 522 |
(Benefit) provision for income | | | | | | | | | | | | | | | | | | |
taxes | | | — | | | -35 | | | — | | | 41 | | | — | | | 6 |
| | | | | | | | | | | | | | | | | | |
Net income (loss) | | | 516 | | | 516 | | | — | | | -445 | | | -71 | | | 516 |
| | | | | | | | | | | | | | | | | | |
Other comprehensive loss | | | | | | | | | | | | | | | | | | |
Change in retirement plans | | | -528 | | | -528 | | | — | | | — | | | 528 | | | -528 |
Realized and unrealized losses | | | | | | | | | | | | | | | | | | |
on derivatives | | | -1,523 | | | -1,523 | | | — | | | — | | | 1,523 | | | -1,523 |
Total other comprehensive loss | | | -2,051 | | | -2,051 | | | — | | | — | | | 2,051 | | | -2,051 |
| | | | | | | | | | | | | | | | | | |
Comprehensive loss | | $ | -1,535 | | $ | -1,535 | | $ | — | | $ | -445 | | $ | 1,980 | | $ | -1,535 |
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| | | | | | | | | | | | | | | | | | |
PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
| | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
| | | | | | | | | | | | | | | | | | |
FOR NINE MONTHS ENDED SEPTEMBER 29, 2013 |
(unaudited) |
(dollars in thousands) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
| | | | | | | | | | | | | | | | | | |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | |
Net loss | | $ | -10,289 | | $ | -10,289 | | $ | — | | $ | -54 | | $ | 10,343 | | $ | -10,289 |
Adjustments to reconcile net loss | | | | | | | | | | | | | | | | | | |
to net cash provided (used) | | | | | | | | | | | | | | | | | | |
by operating activities: | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | — | | | 22,811 | | | — | | | 2 | | | — | | | 22,813 |
Other | | | — | | | 11,279 | | | — | | | 509 | | | — | | | 11,788 |
Change in assets and liabilities, net | | | 15,935 | | | -24,773 | | | — | | | 248 | | | -10,343 | | | -18,933 |
Net cash provided (used) by | | | | | | | | | | | | | | | | | | |
operating activities | | | 5,646 | | | -972 | | | — | | | 705 | | | — | | | 5,379 |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | |
Proceeds from sale of equipment | | | — | | | 6 | | | — | | | — | | | — | | | 6 |
Additions to property, plant | | | | | | | | | | | | | | | | | | |
and equipment | | | — | | | -20,266 | | | — | | | — | | | — | | | -20,266 |
| | | | | | | | | | | | | | | | | | |
Net cash used by investing activities | | | — | | | -20,260 | | | — | | | — | | | — | | | -20,260 |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | |
Payments of senior secured | | | | | | | | | | | | | | | | | | |
first lien notes payable | | | — | | | -305,000 | | | — | | | — | | | — | | | -305,000 |
Proceeds from first lien | | | | | | | | | | | | | | | | | | |
term loan | | | — | | | 331,650 | | | — | | | — | | | — | | | 331,650 |
Payment of industrial | | | | | | | | | | | | | | | | | | |
development bond | | | — | | | -2,650 | | | — | | | — | | | — | | | -2,650 |
Debt acquisition costs | | | — | | | -7,235 | | | — | | | — | | | — | | | -7,235 |
Payments relating to capital | | | | | | | | | | | | | | | | | | |
lease obligations | | | — | | | -67 | | | — | | | — | | | — | | | -67 |
Proceeds from old revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | — | | | 155,300 | | | — | | | — | | | — | | | 155,300 |
Payments of old revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | — | | | -159,000 | | | — | | | — | | | — | | | -159,000 |
Proceeds from new revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | | | | 129,100 | | | | | | | | | | | | 129,100 |
Payments of new revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | | | | -109,100 | | | | | | | | | | | | -109,100 |
Payments of State of Ohio loans | | | — | | | -987 | | | — | | | — | | | — | | | -987 |
Due to (from) parent and affiliated | | | | | | | | | | | | | | | | | | |
companies, net | | | 3,424 | | | -2,527 | | | — | | | -897 | | | — | | | — |
Proceeds from issuance of | | | | | | | | | | | | | | | | | | |
redeemable common stock | | | 1,651 | | | — | | | — | | | — | | | — | | | 1,651 |
Payments to redeem common stock | | | -10,721 | | | — | | | — | | | — | | | — | | | -10,721 |
Decrease in cash overdraft | | | — | | | -2,886 | | | — | | | — | | | — | | | -2,886 |
| | | | | | | | | | | | | | | | | | |
Net cash (used) provided by | | | | | | | | | | | | | | | | | | |
financing activities | | | -5,646 | | | 26,598 | | | — | | | -897 | | | — | | | 20,055 |
| | | | | | | | | | | | | | | | | | |
Effect of foreign exchange rate | | | | | | | | | | | | | | | | | | |
changes on cash and cash equivalents | | | — | | | -9 | | | — | | | — | | | — | | | -9 |
Change in cash and cash equivalents | | | — | | | 5,357 | | | — | | | -192 | | | — | | | 5,165 |
Cash and cash equivalents at | | | | | | | | | | | | | | | | | | |
beginning of period | | | — | | | 1,593 | | | — | | | 258 | | | — | | | 1,851 |
Cash and cash equivalents at | | | | | | | | | | | | | | | | | | |
end of period | | $ | — | | $ | 6,950 | | $ | — | | $ | 66 | | $ | — | | $ | 7,016 |
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| | | | | | | | | | | | | | | | | | |
PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES |
AND APPVION, INC. AND SUBSIDIARIES |
| | | | | | | | | | | | | | | | | | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued) |
| | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
| | | | | | | | | | | | | | | | | | |
FOR NINE MONTHS ENDED SEPTEMBER 30, 2012 |
(unaudited) |
(dollars in thousands) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Non- | | | | | | |
| | Parent | | | | | Subsidiary | | Guarantor | | | | | | |
| | Guarantor | | Issuer | | Guarantors | | Subsidiary | | Eliminations | | Consolidated |
| | | | | | | | | | | | | | | | | | |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | |
Net loss | | $ | -111,320 | | $ | -111,320 | | $ | — | | $ | -2,072 | | $ | 113,392 | | $ | -111,320 |
Adjustments to reconcile net loss | | | | | | | | | | | | | | | | | | |
to net cash provided (used) | | | | | | | | | | | | | | | | | | |
by operating activities: | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | — | | | 91,166 | | | — | | | 3 | | | — | | | 91,169 |
Other | | | — | | | 15,392 | | | — | | | -468 | | | — | | | 14,924 |
Change in assets and liabilities, net | | | 118,309 | | | 10,355 | | | — | | | -358 | | | -113,392 | | | 14,914 |
Net cash provided (used) by | | | | | | | | | | | | | | | | | | |
operating activities | | | 6,989 | | | 5,593 | | | — | | | -2,895 | | | — | | | 9,687 |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | |
Proceeds from sale of equipment | | | — | | | 20 | | | — | | | — | | | — | | | 20 |
Additions to property, plant | | | | | | | | | | | | | | | | | | |
and equipment | | | — | | | -9,015 | | | — | | | — | | | — | | | -9,015 |
| | | | | | | | | | | | | | | | | | |
Net cash used by investing activities | | | — | | | -8,995 | | | — | | | — | | | — | | | -8,995 |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | |
Payments relating to capital | | | | | | | | | | | | | | | | | | |
lease obligations | | | — | | | -46 | | | — | | | — | | | — | | | -46 |
Proceeds from revolving line | | | | | | | | | | | | | | | | | | |
of credit | | | | | | 190,300 | | | | | | | | | | | | 190,300 |
Payments of revolving line of credit | | | | | | -182,750 | | | | | | | | | | | | -182,750 |
Payments of State of Ohio loans | | | — | | | -935 | | | — | | | — | | | — | | | -935 |
Proceeds from municipal debt | | | — | | | 300 | | | — | | | — | | | — | | | 300 |
Due (from) to parent and affiliated | | | | | | | | | | | | | | | | | | |
companies, net | | | -87 | | | -2,576 | | | — | | | 2,663 | | | — | | | — |
Proceeds from issuance of | | | | | | | | | | | | | | | | | | |
redeemable common stock | | | 1,677 | | | — | | | — | | | — | | | — | | | 1,677 |
Payments to redeem common stock | | | -8,579 | | | — | | | — | | | — | | | — | | | -8,579 |
Decrease in cash overdraft | | | — | | | -5,479 | | | — | | | — | | | — | | | -5,479 |
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Net cash (used) provided by | | | | | | | | | | | | | | | | | | |
financing activities | | | -6,989 | | | -1,186 | | | — | | | 2,663 | | | — | | | -5,512 |
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Effect of foreign exchange rate | | | | | | | | | | | | | | | | | | |
changes on cash and cash equivalents | | | — | | | 22 | | | — | | | — | | | — | | | 22 |
Change in cash and cash equivalents | | | — | | | -4,566 | | | — | | | -232 | | | — | | | -4,798 |
Cash and cash equivalents at | | | | | | | | | | | | | | | | | | |
beginning of period | | | — | | | 6,688 | | | — | | | 553 | | | — | | | 7,241 |
Cash and cash equivalents at | | | | | | | | | | | | | | | | | | |
end of period | | $ | — | | $ | 2,122 | | $ | — | | $ | 321 | | $ | — | | $ | 2,443 |
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