Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 29, 2014 | Apr. 30, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Polypore International, Inc. | ' |
Entity Central Index Key | '0001292556 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 45,078,288 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_consolidated_balance
Condensed consolidated balance sheets (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $177,441 | $163,423 |
Accounts receivable, net | 113,308 | 113,506 |
Inventories | 113,586 | 113,860 |
Prepaid and other | 16,362 | 18,118 |
Total current assets | 420,697 | 408,907 |
Property, plant and equipment, net | 587,627 | 595,375 |
Goodwill | 444,512 | 444,512 |
Intangibles and loan acquisition costs, net | 90,376 | 93,792 |
Other | 7,617 | 7,627 |
Total assets | 1,550,829 | 1,550,213 |
Current liabilities: | ' | ' |
Accounts payable | 24,157 | 31,764 |
Accrued liabilities | 48,420 | 49,266 |
Income taxes payable | 5,082 | 4,055 |
Current portion of debt | 192,500 | 16,875 |
Total current liabilities | 270,159 | 101,960 |
Debt, less current portion | 446,250 | 629,375 |
Pension obligations, less current portion | 103,943 | 102,821 |
Deferred income taxes | 69,151 | 70,332 |
Other | 26,440 | 26,149 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock - 15,000,000 shares authorized, no shares issued and outstanding | ' | ' |
Common stock, $.01 par value - 200,000,000 shares authorized, 47,096,179 issued and 45,078,316 outstanding at March 29, 2014 and 46,926,205 issued and 44,916,570 outstanding at December 28, 2013 | 471 | 469 |
Paid-in capital | 575,356 | 569,362 |
Retained earnings | 145,776 | 137,379 |
Accumulated other comprehensive loss | -11,943 | -12,865 |
Treasury stock, at cost - 2,017,863 shares at March 29, 2014 and 2,009,635 shares at December 28, 2013 | -80,950 | -80,668 |
Total Polypore shareholders' equity | 628,710 | 613,677 |
Noncontrolling interest | 6,176 | 5,899 |
Total shareholders' equity | 634,886 | 619,576 |
Total liabilities and shareholders' equity | $1,550,829 | $1,550,213 |
Condensed_consolidated_balance1
Condensed consolidated balance sheets (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Condensed consolidated balance sheets | ' | ' |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 47,096,179 | 46,926,205 |
Common stock, shares outstanding | 45,078,316 | 44,916,570 |
Treasury stock, shares | 2,017,863 | 2,009,635 |
Condensed_consolidated_stateme
Condensed consolidated statements of income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Condensed consolidated statements of income | ' | ' |
Net sales | $161,002 | $145,941 |
Cost of goods sold | 102,486 | 96,746 |
Gross profit | 58,516 | 49,195 |
Selling, general and administrative expenses | 36,156 | 30,736 |
Operating income | 22,360 | 18,459 |
Other (income) expense: | ' | ' |
Interest expense, net | 9,620 | 9,791 |
Foreign currency and other | 598 | 648 |
Other (income) expense total | 10,218 | 10,439 |
Income from continuing operations before income taxes | 12,142 | 8,020 |
Income taxes | 3,400 | 2,193 |
Income from continuing operations | 8,742 | 5,827 |
Income from discontinued operations, net of income taxes | ' | 3,364 |
Net income | 8,742 | 9,191 |
Less: Net income attributable to noncontrolling interest | 345 | 170 |
Net income attributable to Polypore International, Inc. | 8,397 | 9,021 |
Net income attributable to Polypore International, Inc.: | ' | ' |
Income from continuing operations | 8,397 | 5,657 |
Income from discontinued operations | ' | 3,364 |
Net income attributable to Polypore International, Inc. | $8,397 | $9,021 |
Net income attributable to Polypore International, Inc. per share - basic: | ' | ' |
Continuing operations (in dollars per share) | $0.19 | $0.12 |
Discontinued operations (in dollars per share) | ' | $0.07 |
Net income attributable to Polypore International, Inc. per share | $0.19 | $0.19 |
Net income attributable to Polypore International, Inc. per share - diluted: | ' | ' |
Continuing operations (in dollars per share) | $0.18 | $0.12 |
Discontinued operations (in dollars per share) | ' | $0.07 |
Net income attributable to Polypore International, Inc. per share - diluted | $0.18 | $0.19 |
Weighted average shares outstanding: | ' | ' |
Weighted average shares outstanding - basic (in shares) | 44,884,728 | 46,613,321 |
Weighted average shares outstanding - diluted (in shares) | 45,423,573 | 47,295,430 |
Condensed_consolidated_stateme1
Condensed consolidated statements of comprehensive income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Condensed consolidated statements of comprehensive income | ' | ' |
Net income | $8,742 | $9,191 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustment | 660 | -3,946 |
Change in net actuarial loss and prior service credit | 22 | 903 |
Income taxes related to other comprehensive income (loss) | 172 | 622 |
Other comprehensive income (loss) | 854 | -2,421 |
Comprehensive income | 9,596 | 6,770 |
Less: Comprehensive income attributable to noncontrolling interest | 277 | 212 |
Comprehensive income attributable to Polypore International, Inc. | $9,319 | $6,558 |
Condensed_consolidated_stateme2
Condensed consolidated statements of cash flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Operating activities: | ' | ' |
Net income | $8,742 | $9,191 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation expense | 10,941 | 11,361 |
Amortization expense | 2,786 | 2,964 |
Amortization of loan acquisition costs | 618 | 618 |
Stock-based compensation | 5,377 | 4,467 |
Foreign currency loss | 896 | 555 |
Deferred income taxes | -1,728 | -2,841 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 364 | 12,382 |
Inventories | 399 | -5,865 |
Prepaid and other current assets | 1,868 | 333 |
Accounts payable and accrued liabilities | -7,741 | 2,188 |
Income taxes payable | 1,187 | 203 |
Other, net | 574 | 799 |
Net cash provided by operating activities | 24,283 | 36,355 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment, net | -3,748 | -6,228 |
Net cash used in investing activities | -3,748 | -6,228 |
Financing activities: | ' | ' |
Principal payments on debt | -7,500 | -7,500 |
Payments on revolving credit facility | ' | -25,000 |
Repurchases of common stock | -282 | -476 |
Proceeds from stock option exercises | 619 | 202 |
Contributions from noncontrolling interest | ' | 700 |
Net cash used in financing activities | -7,163 | -32,074 |
Effect of exchange rate changes on cash and cash equivalents | 646 | 273 |
Net increase (decrease) in cash and cash equivalents | 14,018 | -1,674 |
Cash and cash equivalents at beginning of period | 163,423 | 44,873 |
Cash and cash equivalents at end of period | $177,441 | $43,199 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 29, 2014 | |
Description of Business and Basis of Presentation | ' |
Description of Business and Basis of Presentation | ' |
1. Description of Business and Basis of Presentation | |
Description of Business | |
Polypore International, Inc. (the “Company”) is a leading global high-technology filtration company that develops, manufactures and markets specialized microporous membranes used in separation and filtration processes. The Company has a global presence in the major geographic markets of North America, South America, Europe and Asia. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries after elimination of intercompany accounts and transactions. The unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, the unaudited condensed consolidated financial statements and notes do not contain certain information included in the Company’s annual financial statements. In the opinion of management, all normal and recurring adjustments that are necessary for a fair presentation have been made. Certain amounts previously presented in the condensed consolidated financial statements for prior periods have been reclassified to conform to current classifications. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013. Operating results for the three months ended March 29, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 3, 2015. | |
On December 19, 2013, the Company completed the sale of its Microporous business. The operating results of this business have been presented as discontinued operations for the three months ended March 30, 2013. All disclosures and amounts in the notes to the condensed consolidated financial statements relate to the Company’s continuing operations, unless otherwise indicated. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 29, 2014 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
2. Recent Accounting Pronouncements | |
In July 2013, the FASB issued guidance on the presentation of certain unrecognized tax benefits in the financial statements. This guidance requires that an unrecognized tax benefit be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward rather than as a liability if certain criteria are met. The guidance is effective for annual and interim periods beginning after December 15, 2013. The adoption of this guidance in the Company’s March 29, 2014 condensed consolidated financial statements did not have an impact on the Company’s financial statement presentation, financial condition or results of operations. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
3. Inventories | ||||||||
Inventories are carried at the lower of cost or market using the first-in, first-out method of accounting and consist of: | ||||||||
(in thousands) | March 29, 2014 | December 28, 2013 | ||||||
Raw materials | $ | 37,341 | $ | 39,357 | ||||
Work-in-process | 21,131 | 22,079 | ||||||
Finished goods | 55,114 | 52,424 | ||||||
$ | 113,586 | $ | 113,860 |
Debt
Debt | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Debt | ' | |||||||
Debt | ' | |||||||
4. Debt | ||||||||
Debt, in order of priority, consists of: | ||||||||
(in thousands) | March 29, 2014 | December 28, 2013 | ||||||
Senior credit agreement: | ||||||||
Revolving credit facility | $ | — | $ | — | ||||
Term loan facility | 273,750 | 281,250 | ||||||
273,750 | 281,250 | |||||||
7.5% senior notes | 365,000 | 365,000 | ||||||
638,750 | 646,250 | |||||||
Less current portion | 192,500 | 16,875 | ||||||
Long-term debt | $ | 446,250 | $ | 629,375 | ||||
On April 8, 2014 (the “closing date”), the Company entered into a new senior secured credit agreement, used cash on hand and initial borrowings under the new credit agreement to pay all outstanding principal and interest under the previous senior secured credit agreement, and issued a redemption notice for its outstanding 7.5% senior notes. | ||||||||
The new credit agreement provides for a $150,000,000 revolving credit facility and a $500,000,000 term loan facility and matures in April 2019. The new credit agreement is guaranteed by the Company’s domestic subsidiaries and is secured by substantially all assets of the Company and its domestic subsidiaries and a first priority pledge of 65% of the voting capital stock of its foreign subsidiaries. The Company’s ability to pay dividends on its common stock is limited under the terms of the credit agreement. The Company is also subject to certain financial covenants, including a maximum leverage ratio and a minimum interest coverage ratio. Interest rates are, at the Company’s option, equal to either an alternate base rate or the Eurocurrency base rate, plus a specified margin. | ||||||||
On April 8, 2014, the Company used cash on hand of $140,750,000, proceeds from the initial draw under the new term loan facility of $100,000,000 and borrowings under the new revolving credit facility of $33,000,000 to pay all outstanding principal and interest under the previous senior secured credit agreement. On May 8, 2014, the Company borrowed the remaining $400,000,000 available under the new term loan facility and used the proceeds to purchase and retire all of the previously outstanding 7.5% senior notes and pay redemption premiums and accrued and unpaid interest at the redemption date. The total purchase price for the notes was $385,531,000, consisting of principal of $365,000,000 and redemption premiums of $20,531,000. The redemption premiums will be recognized as expense in the second quarter of 2014. | ||||||||
At March 29, 2014, the current portion of debt reflects the impact of the debt reduction and refinancing transactions that occurred on April 8, 2014, and consists of $140,750,000 of cash and $33,000,000 of borrowings under the new revolving credit facility used to pay outstanding principal under the previous term loan facility, and $18,750,000 of principal payments due in the next twelve months under the new credit agreement. The Company intends to repay borrowings under the new revolving credit facility within the next twelve months. | ||||||||
Minimum scheduled principal repayments of the new term loan are as follows: | ||||||||
(in thousands) | ||||||||
2014 | $ | 12,500 | ||||||
2015 | 25,000 | |||||||
2016 | 31,250 | |||||||
2017 | 43,750 | |||||||
2018 | 62,500 | |||||||
2019 | 325,000 | |||||||
$ | 500,000 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 29, 2014 | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | ' |
5. Fair Value of Financial Instruments | |
The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates their fair value due to the short-term maturities of these assets and liabilities. The carrying amount of borrowings under the senior secured credit agreement approximates fair value because the interest rates adjust to market interest rates. The fair value of the Company’s 7.5% senior notes, based on a quoted market price and classified as level one in the fair value hierarchy, was $385,988,000 at March 29, 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
6. Income Taxes | |
The income tax provision for the interim periods presented is computed at the effective rate expected to be applicable in each respective full year using the statutory rates on a country-by-country basis. Income tax expense recorded in the financial statements differs from the federal statutory income tax rate due to a variety of factors, including state income taxes, the mix of income between U.S. and foreign jurisdictions taxed at varying rates and changes in estimates of permanent differences and valuation allowances. |
Pension_Plans
Pension Plans | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Pension Plans | ' | |||||||
Pension Plans | ' | |||||||
7. Pension Plans | ||||||||
The Company and its subsidiaries sponsor multiple defined benefit pension plans based in subsidiaries located outside of the United States. The following table provides the components of net periodic benefit cost: | ||||||||
Three Months Ended | ||||||||
(in thousands) | March 29, 2014 | March 30, 2013 | ||||||
Service cost | $ | 524 | $ | 563 | ||||
Interest cost | 1,080 | 1,127 | ||||||
Expected return on plan assets | (109 | ) | (191 | ) | ||||
Amortization of prior service credit | (32 | ) | (13 | ) | ||||
Recognized net actuarial loss | 269 | 432 | ||||||
Net periodic benefit cost | $ | 1,732 | $ | 1,918 |
Environmental_Matters
Environmental Matters | 3 Months Ended |
Mar. 29, 2014 | |
Environmental Matters | ' |
Environmental Matters | ' |
8. Environmental Matters | |
Environmental obligations are accrued when such expenditures are probable and reasonably estimable. The amount of liability recorded is based on currently available information, including the progress of remedial investigations, current status of discussions with regulatory authorities regarding the method and extent of remediation, presently enacted laws and existing technology. Accruals for estimated losses from environmental obligations are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental obligations are not discounted to their present value. The Company does not currently anticipate any material loss in excess of the amounts accrued. However, the Company’s future remediation expenses may be affected by a number of uncertainties including, but not limited to, the difficulty in estimating the extent and method of remediation, the evolving nature of environmental regulations and the availability and application of technology. The Company does not expect the resolution of such uncertainties to have a material adverse effect on its consolidated financial position or liquidity. Recoveries of environmental costs from other parties are recognized as assets when receipt is deemed probable. | |
In connection with the acquisition of Membrana GmbH (“Membrana”) in 2002, the Company recorded a reserve for environmental obligations. The reserve provides for costs to remediate known environmental issues and operational upgrades which are required in order for the Company to remain in compliance with local regulations. The initial estimate and subsequent finalization of the reserve was included in the allocation of purchase price at the date of acquisition. The environmental reserve for the Membrana facility, which is denominated in euros, was $2,633,000 and $2,882,000 at March 29, 2014 and December 28, 2013, respectively. The Company anticipates the expenditures associated with the reserve will be made in the next twelve months. The reserve is included in “Accrued liabilities” in the accompanying condensed consolidated balance sheets. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 29, 2014 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
9. Related Party Transactions | |
The Company’s German subsidiary has a 33% equity investment in a patent and trademark service provider and a 25% equity investment in a research company. The investments are accounted for under the equity method of accounting and were $876,000 and $676,000 at March 29, 2014 and December 28, 2013, respectively. Charges from the affiliates for work performed were $357,000 and $266,000 for the three months ended March 29, 2014 and March 30, 2013, respectively. Amounts due to the affiliates were $155,000 and $254,000 at March 29, 2014 and December 28, 2013, respectively. |
Noncontrolling_Interest
Noncontrolling Interest | 3 Months Ended |
Mar. 29, 2014 | |
Noncontrolling Interest | ' |
Noncontrolling Interest | ' |
10. Noncontrolling Interest | |
In 2010, the Company formed a joint venture with Camel Group Co., Ltd (“Camel”), a leading battery manufacturer in China, to produce lead-acid battery separators primarily for Camel’s use. The joint venture, Daramic Xiangyang Battery Separator Co., Ltd. (“Daramic Xiangyang”), is located at Camel’s facility and owned 65% by the Company and 35% by Camel. During the three months ended March 30, 2013, the Company and Camel made equity contributions of $1,300,000 and $700,000, respectively, to fund capital expenditures. | |
Daramic Xiangyang has notes payable to Camel and the Company for the purchase of certain assets. The notes payable and related interest will be paid by Daramic Xiangyang using available free cash flow, as defined in the joint venture agreement. The note payable to Camel had a principal balance of $10,348,000 and $5,910,000 at March 29, 2014 and December 28, 2013, respectively, and is included in “Other” non-current liabilities in the accompanying condensed consolidated balance sheets. The note payable to the Company eliminates in consolidation. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
11. Commitments and Contingencies | |
The Company’s employees at the Selestat, France facility are represented under a labor union collective bargaining agreement. The collective bargaining agreement at the Selestat facility, covering approximately 5% of the Company’s workers, expires in June 2014. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 3 Months Ended | |||
Mar. 29, 2014 | ||||
Stock-Based Compensation Plans | ' | |||
Stock-Based Compensation Plans | ' | |||
12. Stock-Based Compensation Plans | ||||
The Company offers stock-based compensation plans to attract, retain, motivate and reward key officers, non-employee directors and employees. Stock-based compensation expense was $5,377,000 and $4,467,000 for the three months ended March 29, 2014 and March 30, 2013, respectively. The income tax benefit related to stock-based compensation expense was $1,920,000 and $1,587,000 for the three months ended March 29, 2014 and March 30, 2013, respectively. Stock-based compensation expense includes costs associated with stock options and restricted stock and is classified as “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of income. | ||||
The 2007 Stock Incentive Plan (“2007 Plan”) allows for the grant of stock options, restricted stock and other instruments for up to a total of 4,751,963 shares of common stock. On February 27, 2014, the Company granted 369,745 stock options and 104,474 shares of restricted stock under the 2007 Plan with an aggregate grant-date fair value of $9,973,000, to be recognized over the vesting period for each award. The stock options granted are time-vested options that vest annually in equal one-third installments and have 10-year terms and an exercise price of $34.98, the fair market value of the Company’s stock on the grant date. | ||||
The fair value of the options granted was estimated on the date of grant based on the Black-Scholes option pricing model with the following assumptions: | ||||
February 27, 2014 | ||||
Grant Assumptions | ||||
Expected term (years) | 5.4 | |||
Risk-free interest rate | 1.6 | % | ||
Expected volatility | 53.7 | % | ||
Dividend yield | — | |||
The potential expected term of the stock options ranges from the vesting period of the options (three years) to the contractual term of the options (ten years). The Company determines the expected term of the options based on historical experience, vesting periods, structure of the option plans and contractual term of the options. The Company’s risk-free interest rate is based on the interest rate of U.S. Treasury bills with a term approximating the expected term of the options and is measured at the date of the stock option grant. Expected volatility is estimated based on the Company’s historical stock prices and implied volatility from traded options. The Company does not anticipate paying dividends. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Segment Information | ' | |||||||
Segment Information | ' | |||||||
13. Segment Information | ||||||||
The Company’s operations are principally managed on a products basis and are comprised of three reportable segments for financial reporting purposes. The Company’s three reportable segments are presented in the context of its two primary businesses — energy storage and separations media. | ||||||||
The energy storage business produces and markets membranes that provide the critical function of separating the cathode and anode in a variety of battery markets and is comprised of the following reportable segments: | ||||||||
· Electronics and EDVs - produces and markets membranes for lithium batteries that are used in portable electronic devices, cordless power tools, electric drive vehicles (“EDVs”) and energy storage systems (“ESS”). | ||||||||
· Transportation and industrial - produces and markets membranes for lead-acid batteries that are used in automobiles, other motor vehicles, forklifts and uninterruptible power supply systems. | ||||||||
The separations media business is a reportable segment and produces and markets membranes and membrane modules used as the high-technology filtration element in various medical and industrial applications. | ||||||||
The Company evaluates the performance of segments and allocates resources to segments based on operating income before depreciation and amortization. In addition, it evaluates business segment performance before stock-based compensation and certain non-recurring and other costs. | ||||||||
Financial information relating to the reportable segments is presented below: | ||||||||
Three Months Ended | ||||||||
(in thousands) | March 29, 2014 | March 30, 2013 | ||||||
Net sales to external customers (by major product group): | ||||||||
Electronics and EDVs | $ | 30,072 | $ | 24,375 | ||||
Transportation and industrial | 79,101 | 76,113 | ||||||
Energy storage | 109,173 | 100,488 | ||||||
Healthcare | 32,157 | 29,498 | ||||||
Filtration and specialty | 19,672 | 15,955 | ||||||
Separations media | 51,829 | 45,453 | ||||||
Net sales | $ | 161,002 | $ | 145,941 | ||||
Operating income: | ||||||||
Electronics and EDVs | $ | 3,061 | $ | (2,019 | ) | |||
Transportation and industrial | 16,966 | 16,241 | ||||||
Energy storage | 20,027 | 14,222 | ||||||
Separations media | 17,757 | 15,509 | ||||||
Corporate and other | (8,434 | ) | (5,833 | ) | ||||
Segment operating income | 29,350 | 23,898 | ||||||
Stock-based compensation | 5,377 | 4,467 | ||||||
Non-recurring and other costs | 1,613 | 972 | ||||||
Total operating income | 22,360 | 18,459 | ||||||
Reconciling items: | ||||||||
Interest expense, net | 9,620 | 9,791 | ||||||
Foreign currency and other | 598 | 648 | ||||||
Income from continuing operations before income taxes | $ | 12,142 | $ | 8,020 | ||||
Depreciation and amortization: | ||||||||
Electronics and EDVs | $ | 4,324 | $ | 4,401 | ||||
Transportation and industrial | 2,850 | 2,769 | ||||||
Energy storage | 7,174 | 7,170 | ||||||
Separations media | 3,716 | 3,436 | ||||||
Corporate and other | 2,837 | 2,822 | ||||||
Discontinued operations | — | 897 | ||||||
$ | 13,727 | $ | 14,325 |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||
Mar. 29, 2014 | |||||
Discontinued Operations | ' | ||||
Discontinued Operations | ' | ||||
14. Discontinued Operations | |||||
On December 19, 2013, as required by the divestiture provisions of the Federal Trade Commission’s order, the Company completed the sale of its Microporous business, which consisted of the production facilities in Piney Flats, Tennessee, and Feistritz, Austria, for $120,000,000. The Company recognized a gain of $35,855,000 on the sale, net of direct transaction costs and income taxes. The sales price and resulting gain are subject to adjustment in subsequent periods upon finalization of working capital. | |||||
Microporous was previously included in the transportation and industrial segment. The results of operations of Microporous are classified as discontinued operations and are presented separately in the accompanying condensed consolidated statement of income for the three months ended March 30, 2013. Summarized results of operations reported as discontinued operations are as follows: | |||||
Three Months Ended | |||||
(in thousands) | March 30, 2013 | ||||
Net sales | $ | 17,572 | |||
Income from discontinued operations before income taxes | 5,119 | ||||
Income from discontinued operations, net of income taxes | 3,364 | ||||
Financial_Statements_of_Guaran
Financial Statements of Guarantors | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Financial Statements of Guarantors | ' | ||||||||||||||||
Financial Statements of Guarantors | ' | ||||||||||||||||
15. Financial Statements of Guarantors | |||||||||||||||||
The Company’s senior notes are unconditionally guaranteed, jointly and severally, on a senior basis by certain of the Company’s 100% owned subsidiaries (“Guarantors”). Management has determined that separate complete financial statements of the Guarantors would not be material to users of the financial statements. | |||||||||||||||||
The following sets forth condensed consolidating financial statements of the Guarantors and non-Guarantor subsidiaries. | |||||||||||||||||
Condensed consolidating balance sheet | |||||||||||||||||
March 29, 2014 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 50,255 | $ | 127,186 | $ | — | $ | 177,441 | |||||||
Accounts receivable, net | 32,391 | 80,917 | — | — | 113,308 | ||||||||||||
Inventories | 35,743 | 77,843 | — | — | 113,586 | ||||||||||||
Prepaid and other | 4,635 | 8,714 | 3,013 | — | 16,362 | ||||||||||||
Total current assets | 72,769 | 217,729 | 130,199 | — | 420,697 | ||||||||||||
Due from affiliates | 558,909 | 945,602 | 470,704 | (1,975,215 | ) | — | |||||||||||
Investment in subsidiaries | 126,992 | 580,635 | 717,781 | (1,425,408 | ) | — | |||||||||||
Property, plant and equipment, net | 300,546 | 287,081 | — | — | 587,627 | ||||||||||||
Goodwill | — | — | 444,512 | — | 444,512 | ||||||||||||
Intangibles and loan acquisition costs, net | — | — | 90,376 | — | 90,376 | ||||||||||||
Other | 727 | 6,562 | 328 | — | 7,617 | ||||||||||||
Total assets | $ | 1,059,943 | $ | 2,037,609 | $ | 1,853,900 | $ | (3,400,623 | ) | $ | 1,550,829 | ||||||
Liabilities and shareholders’ equity | |||||||||||||||||
Accounts payable and accrued liabilities | $ | 19,492 | $ | 40,411 | $ | 12,674 | $ | — | $ | 72,577 | |||||||
Income taxes payable | — | 5,670 | (588 | ) | — | 5,082 | |||||||||||
Current portion of debt | — | — | 192,500 | — | 192,500 | ||||||||||||
Total current liabilities | 19,492 | 46,081 | 204,586 | — | 270,159 | ||||||||||||
Due to affiliates | 512,508 | 895,002 | 567,705 | (1,975,215 | ) | — | |||||||||||
Debt, less current portion | — | — | 446,250 | — | 446,250 | ||||||||||||
Pension obligations, less current portion | — | 103,943 | — | — | 103,943 | ||||||||||||
Deferred income taxes and other | 48,843 | 46,275 | 473 | — | 95,591 | ||||||||||||
Shareholders’ equity | 479,100 | 946,308 | 634,886 | (1,425,408 | ) | 634,886 | |||||||||||
Total liabilities and shareholders’ equity | $ | 1,059,943 | $ | 2,037,609 | $ | 1,853,900 | $ | (3,400,623 | ) | $ | 1,550,829 | ||||||
Condensed consolidating balance sheet | |||||||||||||||||
December 28, 2013 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 87,082 | $ | 76,341 | $ | — | $ | 163,423 | |||||||
Accounts receivable, net | 32,860 | 80,646 | — | — | 113,506 | ||||||||||||
Inventories | 38,974 | 74,886 | — | — | 113,860 | ||||||||||||
Prepaid and other | 7,541 | 8,503 | 2,074 | — | 18,118 | ||||||||||||
Total current assets | 79,375 | 251,117 | 78,415 | — | 408,907 | ||||||||||||
Due from affiliates | 551,141 | 903,815 | 467,441 | (1,922,397 | ) | — | |||||||||||
Investment in subsidiaries | 129,588 | 577,878 | 755,626 | (1,463,092 | ) | — | |||||||||||
Property, plant and equipment, net | 303,888 | 291,487 | — | — | 595,375 | ||||||||||||
Goodwill | — | — | 444,512 | — | 444,512 | ||||||||||||
Intangibles and loan acquisition costs, net | — | — | 93,792 | — | 93,792 | ||||||||||||
Other | 727 | 6,755 | 145 | — | 7,627 | ||||||||||||
Total assets | $ | 1,064,719 | $ | 2,031,052 | $ | 1,839,931 | $ | (3,385,489 | ) | $ | 1,550,213 | ||||||
Liabilities and shareholders’ equity | |||||||||||||||||
Accounts payable and accrued liabilities | $ | 26,865 | $ | 40,916 | $ | 13,249 | $ | — | $ | 81,030 | |||||||
Income taxes payable | — | 3,873 | 182 | — | 4,055 | ||||||||||||
Current portion of debt | — | — | 16,875 | — | 16,875 | ||||||||||||
Total current liabilities | 26,865 | 44,789 | 30,306 | — | 101,960 | ||||||||||||
Due to affiliates | 510,356 | 851,659 | 560,382 | (1,922,397 | ) | — | |||||||||||
Debt, less current portion | — | — | 629,375 | — | 629,375 | ||||||||||||
Pension obligations, less current portion | — | 102,821 | — | — | 102,821 | ||||||||||||
Deferred income taxes and other | 51,401 | 44,788 | 292 | — | 96,481 | ||||||||||||
Shareholders’ equity | 476,097 | 986,995 | 619,576 | (1,463,092 | ) | 619,576 | |||||||||||
Total liabilities and shareholders’ equity | $ | 1,064,719 | $ | 2,031,052 | $ | 1,839,931 | $ | (3,385,489 | ) | $ | 1,550,213 | ||||||
Condensed consolidating statement of income | |||||||||||||||||
For the three months ended March 29, 2014 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net sales | $ | 49,230 | $ | 111,772 | $ | — | $ | — | $ | 161,002 | |||||||
Cost of goods sold | 23,402 | 79,084 | — | — | 102,486 | ||||||||||||
Gross profit | 25,828 | 32,688 | — | — | 58,516 | ||||||||||||
Selling, general and administrative expenses | 19,163 | 11,875 | 5,118 | — | 36,156 | ||||||||||||
Operating income (loss) | 6,665 | 20,813 | (5,118 | ) | — | 22,360 | |||||||||||
Interest expense and other | (1,826 | ) | 2,340 | 9,704 | — | 10,218 | |||||||||||
Equity in earnings of subsidiaries | — | — | (17,879 | ) | 17,879 | — | |||||||||||
Income from continuing operations before income taxes | 8,491 | 18,473 | 3,057 | (17,879 | ) | 12,142 | |||||||||||
Income taxes | 4,582 | 4,503 | (5,685 | ) | — | 3,400 | |||||||||||
Net income | 3,909 | 13,970 | 8,742 | (17,879 | ) | 8,742 | |||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 345 | — | 345 | ||||||||||||
Net income attributable to Polypore International, Inc. | $ | 3,909 | $ | 13,970 | $ | 8,397 | $ | (17,879 | ) | $ | 8,397 | ||||||
Condensed consolidating statement of income | |||||||||||||||||
For the three months ended March 30, 2013 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net sales | $ | 35,138 | $ | 110,803 | $ | — | $ | — | $ | 145,941 | |||||||
Cost of goods sold | 16,647 | 80,099 | — | — | 96,746 | ||||||||||||
Gross profit | 18,491 | 30,704 | — | — | 49,195 | ||||||||||||
Selling, general and administrative expenses | 15,007 | 11,412 | 4,317 | — | 30,736 | ||||||||||||
Operating income (loss) | 3,484 | 19,292 | (4,317 | ) | — | 18,459 | |||||||||||
Interest expense and other | (1,400 | ) | 2,141 | 9,698 | — | 10,439 | |||||||||||
Equity in earnings of subsidiaries | — | — | (16,087 | ) | 16,087 | — | |||||||||||
Income from continuing operations before income taxes | 4,884 | 17,151 | 2,072 | (16,087 | ) | 8,020 | |||||||||||
Income taxes | 3,910 | 5,587 | (7,304 | ) | — | 2,193 | |||||||||||
Income from continuing operations | 974 | 11,564 | 9,376 | (16,087 | ) | 5,827 | |||||||||||
Income from discontinued operations, net of income taxes | 1,489 | 2,060 | (185 | ) | — | 3,364 | |||||||||||
Net income | 2,463 | 13,624 | 9,191 | (16,087 | ) | 9,191 | |||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 170 | — | 170 | ||||||||||||
Net income attributable to Polypore International, Inc. | $ | 2,463 | $ | 13,624 | $ | 9,021 | $ | (16,087 | ) | $ | 9,021 | ||||||
Condensed consolidating statement of comprehensive income | |||||||||||||||||
For the three months ended March 29, 2014 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net income | $ | 3,909 | $ | 13,970 | $ | 8,742 | $ | (17,879 | ) | $ | 8,742 | ||||||
Foreign currency translation adjustment, net of income tax benefit of $172 | — | 884 | (278 | ) | 226 | 832 | |||||||||||
Change in net actuarial loss and prior service credit | — | 22 | — | — | 22 | ||||||||||||
Equity in earnings of subsidiaries | — | — | 1,132 | (1,132 | ) | — | |||||||||||
Comprehensive income | 3,909 | 14,876 | 9,596 | (18,785 | ) | 9,596 | |||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | 277 | — | 277 | ||||||||||||
Comprehensive income attributable to Polypore International, Inc. | $ | 3,909 | $ | 14,876 | $ | 9,319 | $ | (18,785 | ) | $ | 9,319 | ||||||
Condensed consolidating statement of comprehensive income | |||||||||||||||||
For the three months ended March 30, 2013 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net income | $ | 2,463 | $ | 13,624 | $ | 9,191 | $ | (16,087 | ) | $ | 9,191 | ||||||
Foreign currency translation adjustment, net of income tax benefit of $486 | — | (4,277 | ) | 742 | 75 | (3,460 | ) | ||||||||||
Change in net actuarial loss and prior service credit, net of income tax benefit of $136 | — | 1,039 | — | — | 1,039 | ||||||||||||
Equity in earnings of subsidiaries | — | — | (3,163 | ) | 3,163 | — | |||||||||||
Comprehensive income | 2,463 | 10,386 | 6,770 | (12,849 | ) | 6,770 | |||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | 212 | — | 212 | ||||||||||||
Comprehensive income attributable to Polypore International, Inc. | $ | 2,463 | $ | 10,386 | $ | 6,558 | $ | (12,849 | ) | $ | 6,558 | ||||||
Condensed consolidating statement of cash flows | |||||||||||||||||
For the three months ended March 29, 2014 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 11,625 | $ | 18,599 | $ | (6,456 | ) | $ | 515 | $ | 24,283 | ||||||
Investing activities: | |||||||||||||||||
Purchases of property, plant and equipment, net | (707 | ) | (3,041 | ) | — | — | (3,748 | ) | |||||||||
Net cash used in investing activities | (707 | ) | (3,041 | ) | — | — | (3,748 | ) | |||||||||
Financing activities: | |||||||||||||||||
Principal payments on debt | — | — | (7,500 | ) | — | (7,500 | ) | ||||||||||
Repurchases of common stock | — | — | (282 | ) | — | (282 | ) | ||||||||||
Proceeds from stock option exercises | — | — | 619 | — | 619 | ||||||||||||
Intercompany transactions, net | (10,918 | ) | (53,031 | ) | 64,464 | (515 | ) | — | |||||||||
Net cash provided by (used in) financing activities | (10,918 | ) | (53,031 | ) | 57,301 | (515 | ) | (7,163 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 646 | — | — | 646 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | — | (36,827 | ) | 50,845 | — | 14,018 | |||||||||||
Cash and cash equivalents at beginning of period | — | 87,082 | 76,341 | — | 163,423 | ||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 50,255 | $ | 127,186 | $ | — | $ | 177,441 | |||||||
Condensed consolidating statement of cash flows | |||||||||||||||||
For the three months ended March 30, 2013 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 14,072 | $ | 23,661 | $ | (3,561 | ) | $ | 2,183 | $ | 36,355 | ||||||
Investing activities: | |||||||||||||||||
Purchases of property, plant and equipment, net | (2,261 | ) | (3,967 | ) | — | — | (6,228 | ) | |||||||||
Net cash used in investing activities | (2,261 | ) | (3,967 | ) | — | — | (6,228 | ) | |||||||||
Financing activities: | |||||||||||||||||
Principal payments on debt | — | — | (7,500 | ) | — | (7,500 | ) | ||||||||||
Payments on revolving credit facility | — | — | (25,000 | ) | — | (25,000 | ) | ||||||||||
Repurchases of common stock | — | — | (476 | ) | — | (476 | ) | ||||||||||
Proceeds from stock option exercises | — | — | 202 | — | 202 | ||||||||||||
Contributions from noncontrolling interest | — | — | 700 | — | 700 | ||||||||||||
Intercompany transactions, net | (11,811 | ) | (18,729 | ) | 32,723 | (2,183 | ) | — | |||||||||
Net cash provided by (used in) financing activities | (11,811 | ) | (18,729 | ) | 649 | (2,183 | ) | (32,074 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 273 | — | — | 273 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 1,238 | (2,912 | ) | — | (1,674 | ) | ||||||||||
Cash and cash equivalents at beginning of period | — | 28,098 | 16,775 | — | 44,873 | ||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 29,336 | $ | 13,863 | $ | — | $ | 43,199 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
(in thousands) | March 29, 2014 | December 28, 2013 | ||||||
Raw materials | $ | 37,341 | $ | 39,357 | ||||
Work-in-process | 21,131 | 22,079 | ||||||
Finished goods | 55,114 | 52,424 | ||||||
$ | 113,586 | $ | 113,860 |
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Debt | ' | |||||||
Schedule of debt | ' | |||||||
(in thousands) | March 29, 2014 | December 28, 2013 | ||||||
Senior credit agreement: | ||||||||
Revolving credit facility | $ | — | $ | — | ||||
Term loan facility | 273,750 | 281,250 | ||||||
273,750 | 281,250 | |||||||
7.5% senior notes | 365,000 | 365,000 | ||||||
638,750 | 646,250 | |||||||
Less current portion | 192,500 | 16,875 | ||||||
Long-term debt | $ | 446,250 | $ | 629,375 | ||||
Schedule of minimum scheduled principal repayments of the new term loan | ' | |||||||
(in thousands) | ||||||||
2014 | $ | 12,500 | ||||||
2015 | 25,000 | |||||||
2016 | 31,250 | |||||||
2017 | 43,750 | |||||||
2018 | 62,500 | |||||||
2019 | 325,000 | |||||||
$ | 500,000 |
Pension_Plans_Tables
Pension Plans (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Pension Plans | ' | |||||||
Schedule of components of net periodic benefit cost | ' | |||||||
Three Months Ended | ||||||||
(in thousands) | March 29, 2014 | March 30, 2013 | ||||||
Service cost | $ | 524 | $ | 563 | ||||
Interest cost | 1,080 | 1,127 | ||||||
Expected return on plan assets | (109 | ) | (191 | ) | ||||
Amortization of prior service credit | (32 | ) | (13 | ) | ||||
Recognized net actuarial loss | 269 | 432 | ||||||
Net periodic benefit cost | $ | 1,732 | $ | 1,918 |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 3 Months Ended | |||
Mar. 29, 2014 | ||||
Stock-Based Compensation Plans | ' | |||
Schedule of assumptions for stock option grants | ' | |||
February 27, 2014 | ||||
Grant Assumptions | ||||
Expected term (years) | 5.4 | |||
Risk-free interest rate | 1.6 | % | ||
Expected volatility | 53.7 | % | ||
Dividend yield | — |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Segment Information | ' | |||||||
Schedule of financial information relating to the reportable segments | ' | |||||||
Three Months Ended | ||||||||
(in thousands) | March 29, 2014 | March 30, 2013 | ||||||
Net sales to external customers (by major product group): | ||||||||
Electronics and EDVs | $ | 30,072 | $ | 24,375 | ||||
Transportation and industrial | 79,101 | 76,113 | ||||||
Energy storage | 109,173 | 100,488 | ||||||
Healthcare | 32,157 | 29,498 | ||||||
Filtration and specialty | 19,672 | 15,955 | ||||||
Separations media | 51,829 | 45,453 | ||||||
Net sales | $ | 161,002 | $ | 145,941 | ||||
Operating income: | ||||||||
Electronics and EDVs | $ | 3,061 | $ | (2,019 | ) | |||
Transportation and industrial | 16,966 | 16,241 | ||||||
Energy storage | 20,027 | 14,222 | ||||||
Separations media | 17,757 | 15,509 | ||||||
Corporate and other | (8,434 | ) | (5,833 | ) | ||||
Segment operating income | 29,350 | 23,898 | ||||||
Stock-based compensation | 5,377 | 4,467 | ||||||
Non-recurring and other costs | 1,613 | 972 | ||||||
Total operating income | 22,360 | 18,459 | ||||||
Reconciling items: | ||||||||
Interest expense, net | 9,620 | 9,791 | ||||||
Foreign currency and other | 598 | 648 | ||||||
Income from continuing operations before income taxes | $ | 12,142 | $ | 8,020 | ||||
Depreciation and amortization: | ||||||||
Electronics and EDVs | $ | 4,324 | $ | 4,401 | ||||
Transportation and industrial | 2,850 | 2,769 | ||||||
Energy storage | 7,174 | 7,170 | ||||||
Separations media | 3,716 | 3,436 | ||||||
Corporate and other | 2,837 | 2,822 | ||||||
Discontinued operations | — | 897 | ||||||
$ | 13,727 | $ | 14,325 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||
Mar. 29, 2014 | |||||
Discontinued Operations | ' | ||||
Summary of results of operations reported as discontinued operations | ' | ||||
Three Months Ended | |||||
(in thousands) | March 30, 2013 | ||||
Net sales | $ | 17,572 | |||
Income from discontinued operations before income taxes | 5,119 | ||||
Income from discontinued operations, net of income taxes | 3,364 | ||||
Financial_Statements_of_Guaran1
Financial Statements of Guarantors (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Financial Statements of Guarantors | ' | ||||||||||||||||
Condensed consolidating balance sheet | ' | ||||||||||||||||
Condensed consolidating balance sheet | |||||||||||||||||
March 29, 2014 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 50,255 | $ | 127,186 | $ | — | $ | 177,441 | |||||||
Accounts receivable, net | 32,391 | 80,917 | — | — | 113,308 | ||||||||||||
Inventories | 35,743 | 77,843 | — | — | 113,586 | ||||||||||||
Prepaid and other | 4,635 | 8,714 | 3,013 | — | 16,362 | ||||||||||||
Total current assets | 72,769 | 217,729 | 130,199 | — | 420,697 | ||||||||||||
Due from affiliates | 558,909 | 945,602 | 470,704 | (1,975,215 | ) | — | |||||||||||
Investment in subsidiaries | 126,992 | 580,635 | 717,781 | (1,425,408 | ) | — | |||||||||||
Property, plant and equipment, net | 300,546 | 287,081 | — | — | 587,627 | ||||||||||||
Goodwill | — | — | 444,512 | — | 444,512 | ||||||||||||
Intangibles and loan acquisition costs, net | — | — | 90,376 | — | 90,376 | ||||||||||||
Other | 727 | 6,562 | 328 | — | 7,617 | ||||||||||||
Total assets | $ | 1,059,943 | $ | 2,037,609 | $ | 1,853,900 | $ | (3,400,623 | ) | $ | 1,550,829 | ||||||
Liabilities and shareholders’ equity | |||||||||||||||||
Accounts payable and accrued liabilities | $ | 19,492 | $ | 40,411 | $ | 12,674 | $ | — | $ | 72,577 | |||||||
Income taxes payable | — | 5,670 | (588 | ) | — | 5,082 | |||||||||||
Current portion of debt | — | — | 192,500 | — | 192,500 | ||||||||||||
Total current liabilities | 19,492 | 46,081 | 204,586 | — | 270,159 | ||||||||||||
Due to affiliates | 512,508 | 895,002 | 567,705 | (1,975,215 | ) | — | |||||||||||
Debt, less current portion | — | — | 446,250 | — | 446,250 | ||||||||||||
Pension obligations, less current portion | — | 103,943 | — | — | 103,943 | ||||||||||||
Deferred income taxes and other | 48,843 | 46,275 | 473 | — | 95,591 | ||||||||||||
Shareholders’ equity | 479,100 | 946,308 | 634,886 | (1,425,408 | ) | 634,886 | |||||||||||
Total liabilities and shareholders’ equity | $ | 1,059,943 | $ | 2,037,609 | $ | 1,853,900 | $ | (3,400,623 | ) | $ | 1,550,829 | ||||||
Condensed consolidating balance sheet | |||||||||||||||||
December 28, 2013 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 87,082 | $ | 76,341 | $ | — | $ | 163,423 | |||||||
Accounts receivable, net | 32,860 | 80,646 | — | — | 113,506 | ||||||||||||
Inventories | 38,974 | 74,886 | — | — | 113,860 | ||||||||||||
Prepaid and other | 7,541 | 8,503 | 2,074 | — | 18,118 | ||||||||||||
Total current assets | 79,375 | 251,117 | 78,415 | — | 408,907 | ||||||||||||
Due from affiliates | 551,141 | 903,815 | 467,441 | (1,922,397 | ) | — | |||||||||||
Investment in subsidiaries | 129,588 | 577,878 | 755,626 | (1,463,092 | ) | — | |||||||||||
Property, plant and equipment, net | 303,888 | 291,487 | — | — | 595,375 | ||||||||||||
Goodwill | — | — | 444,512 | — | 444,512 | ||||||||||||
Intangibles and loan acquisition costs, net | — | — | 93,792 | — | 93,792 | ||||||||||||
Other | 727 | 6,755 | 145 | — | 7,627 | ||||||||||||
Total assets | $ | 1,064,719 | $ | 2,031,052 | $ | 1,839,931 | $ | (3,385,489 | ) | $ | 1,550,213 | ||||||
Liabilities and shareholders’ equity | |||||||||||||||||
Accounts payable and accrued liabilities | $ | 26,865 | $ | 40,916 | $ | 13,249 | $ | — | $ | 81,030 | |||||||
Income taxes payable | — | 3,873 | 182 | — | 4,055 | ||||||||||||
Current portion of debt | — | — | 16,875 | — | 16,875 | ||||||||||||
Total current liabilities | 26,865 | 44,789 | 30,306 | — | 101,960 | ||||||||||||
Due to affiliates | 510,356 | 851,659 | 560,382 | (1,922,397 | ) | — | |||||||||||
Debt, less current portion | — | — | 629,375 | — | 629,375 | ||||||||||||
Pension obligations, less current portion | — | 102,821 | — | — | 102,821 | ||||||||||||
Deferred income taxes and other | 51,401 | 44,788 | 292 | — | 96,481 | ||||||||||||
Shareholders’ equity | 476,097 | 986,995 | 619,576 | (1,463,092 | ) | 619,576 | |||||||||||
Total liabilities and shareholders’ equity | $ | 1,064,719 | $ | 2,031,052 | $ | 1,839,931 | $ | (3,385,489 | ) | $ | 1,550,213 | ||||||
Condensed consolidating statement of income | ' | ||||||||||||||||
Condensed consolidating statement of income | |||||||||||||||||
For the three months ended March 29, 2014 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net sales | $ | 49,230 | $ | 111,772 | $ | — | $ | — | $ | 161,002 | |||||||
Cost of goods sold | 23,402 | 79,084 | — | — | 102,486 | ||||||||||||
Gross profit | 25,828 | 32,688 | — | — | 58,516 | ||||||||||||
Selling, general and administrative expenses | 19,163 | 11,875 | 5,118 | — | 36,156 | ||||||||||||
Operating income (loss) | 6,665 | 20,813 | (5,118 | ) | — | 22,360 | |||||||||||
Interest expense and other | (1,826 | ) | 2,340 | 9,704 | — | 10,218 | |||||||||||
Equity in earnings of subsidiaries | — | — | (17,879 | ) | 17,879 | — | |||||||||||
Income from continuing operations before income taxes | 8,491 | 18,473 | 3,057 | (17,879 | ) | 12,142 | |||||||||||
Income taxes | 4,582 | 4,503 | (5,685 | ) | — | 3,400 | |||||||||||
Net income | 3,909 | 13,970 | 8,742 | (17,879 | ) | 8,742 | |||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 345 | — | 345 | ||||||||||||
Net income attributable to Polypore International, Inc. | $ | 3,909 | $ | 13,970 | $ | 8,397 | $ | (17,879 | ) | $ | 8,397 | ||||||
Condensed consolidating statement of income | |||||||||||||||||
For the three months ended March 30, 2013 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net sales | $ | 35,138 | $ | 110,803 | $ | — | $ | — | $ | 145,941 | |||||||
Cost of goods sold | 16,647 | 80,099 | — | — | 96,746 | ||||||||||||
Gross profit | 18,491 | 30,704 | — | — | 49,195 | ||||||||||||
Selling, general and administrative expenses | 15,007 | 11,412 | 4,317 | — | 30,736 | ||||||||||||
Operating income (loss) | 3,484 | 19,292 | (4,317 | ) | — | 18,459 | |||||||||||
Interest expense and other | (1,400 | ) | 2,141 | 9,698 | — | 10,439 | |||||||||||
Equity in earnings of subsidiaries | — | — | (16,087 | ) | 16,087 | — | |||||||||||
Income from continuing operations before income taxes | 4,884 | 17,151 | 2,072 | (16,087 | ) | 8,020 | |||||||||||
Income taxes | 3,910 | 5,587 | (7,304 | ) | — | 2,193 | |||||||||||
Income from continuing operations | 974 | 11,564 | 9,376 | (16,087 | ) | 5,827 | |||||||||||
Income from discontinued operations, net of income taxes | 1,489 | 2,060 | (185 | ) | — | 3,364 | |||||||||||
Net income | 2,463 | 13,624 | 9,191 | (16,087 | ) | 9,191 | |||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 170 | — | 170 | ||||||||||||
Net income attributable to Polypore International, Inc. | $ | 2,463 | $ | 13,624 | $ | 9,021 | $ | (16,087 | ) | $ | 9,021 | ||||||
Condensed consolidating statement of comprehensive income | ' | ||||||||||||||||
Condensed consolidating statement of comprehensive income | |||||||||||||||||
For the three months ended March 29, 2014 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net income | $ | 3,909 | $ | 13,970 | $ | 8,742 | $ | (17,879 | ) | $ | 8,742 | ||||||
Foreign currency translation adjustment, net of income tax benefit of $172 | — | 884 | (278 | ) | 226 | 832 | |||||||||||
Change in net actuarial loss and prior service credit | — | 22 | — | — | 22 | ||||||||||||
Equity in earnings of subsidiaries | — | — | 1,132 | (1,132 | ) | — | |||||||||||
Comprehensive income | 3,909 | 14,876 | 9,596 | (18,785 | ) | 9,596 | |||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | 277 | — | 277 | ||||||||||||
Comprehensive income attributable to Polypore International, Inc. | $ | 3,909 | $ | 14,876 | $ | 9,319 | $ | (18,785 | ) | $ | 9,319 | ||||||
Condensed consolidating statement of comprehensive income | |||||||||||||||||
For the three months ended March 30, 2013 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net income | $ | 2,463 | $ | 13,624 | $ | 9,191 | $ | (16,087 | ) | $ | 9,191 | ||||||
Foreign currency translation adjustment, net of income tax benefit of $486 | — | (4,277 | ) | 742 | 75 | (3,460 | ) | ||||||||||
Change in net actuarial loss and prior service credit, net of income tax benefit of $136 | — | 1,039 | — | — | 1,039 | ||||||||||||
Equity in earnings of subsidiaries | — | — | (3,163 | ) | 3,163 | — | |||||||||||
Comprehensive income | 2,463 | 10,386 | 6,770 | (12,849 | ) | 6,770 | |||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | 212 | — | 212 | ||||||||||||
Comprehensive income attributable to Polypore International, Inc. | $ | 2,463 | $ | 10,386 | $ | 6,558 | $ | (12,849 | ) | $ | 6,558 | ||||||
Condensed consolidating statement of cash flows | ' | ||||||||||||||||
Condensed consolidating statement of cash flows | |||||||||||||||||
For the three months ended March 29, 2014 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 11,625 | $ | 18,599 | $ | (6,456 | ) | $ | 515 | $ | 24,283 | ||||||
Investing activities: | |||||||||||||||||
Purchases of property, plant and equipment, net | (707 | ) | (3,041 | ) | — | — | (3,748 | ) | |||||||||
Net cash used in investing activities | (707 | ) | (3,041 | ) | — | — | (3,748 | ) | |||||||||
Financing activities: | |||||||||||||||||
Principal payments on debt | — | — | (7,500 | ) | — | (7,500 | ) | ||||||||||
Repurchases of common stock | — | — | (282 | ) | — | (282 | ) | ||||||||||
Proceeds from stock option exercises | — | — | 619 | — | 619 | ||||||||||||
Intercompany transactions, net | (10,918 | ) | (53,031 | ) | 64,464 | (515 | ) | — | |||||||||
Net cash provided by (used in) financing activities | (10,918 | ) | (53,031 | ) | 57,301 | (515 | ) | (7,163 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 646 | — | — | 646 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | — | (36,827 | ) | 50,845 | — | 14,018 | |||||||||||
Cash and cash equivalents at beginning of period | — | 87,082 | 76,341 | — | 163,423 | ||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 50,255 | $ | 127,186 | $ | — | $ | 177,441 | |||||||
Condensed consolidating statement of cash flows | |||||||||||||||||
For the three months ended March 30, 2013 | |||||||||||||||||
(in thousands) | Combined | Combined | The Company | Eliminations | Consolidated | ||||||||||||
Guarantor | Non-Guarantor | ||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 14,072 | $ | 23,661 | $ | (3,561 | ) | $ | 2,183 | $ | 36,355 | ||||||
Investing activities: | |||||||||||||||||
Purchases of property, plant and equipment, net | (2,261 | ) | (3,967 | ) | — | — | (6,228 | ) | |||||||||
Net cash used in investing activities | (2,261 | ) | (3,967 | ) | — | — | (6,228 | ) | |||||||||
Financing activities: | |||||||||||||||||
Principal payments on debt | — | — | (7,500 | ) | — | (7,500 | ) | ||||||||||
Payments on revolving credit facility | — | — | (25,000 | ) | — | (25,000 | ) | ||||||||||
Repurchases of common stock | — | — | (476 | ) | — | (476 | ) | ||||||||||
Proceeds from stock option exercises | — | — | 202 | — | 202 | ||||||||||||
Contributions from noncontrolling interest | — | — | 700 | — | 700 | ||||||||||||
Intercompany transactions, net | (11,811 | ) | (18,729 | ) | 32,723 | (2,183 | ) | — | |||||||||
Net cash provided by (used in) financing activities | (11,811 | ) | (18,729 | ) | 649 | (2,183 | ) | (32,074 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 273 | — | — | 273 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 1,238 | (2,912 | ) | — | (1,674 | ) | ||||||||||
Cash and cash equivalents at beginning of period | — | 28,098 | 16,775 | — | 44,873 | ||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 29,336 | $ | 13,863 | $ | — | $ | 43,199 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $37,341 | $39,357 |
Work-in-process | 21,131 | 22,079 |
Finished goods | 55,114 | 52,424 |
Inventories | $113,586 | $113,860 |
Debt_Details
Debt (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 | 8-May-14 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Apr. 08, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Apr. 08, 2014 | Mar. 29, 2014 | Apr. 08, 2014 | 8-May-14 | Apr. 08, 2014 | Mar. 29, 2014 |
7.5% senior notes | 7.5% senior notes | 7.5% senior notes | Previous senior credit agreement | Previous senior credit agreement | Previous senior credit agreement | Previous senior credit agreement | Previous senior credit agreement | New senior credit agreement | New senior credit agreement | New senior credit agreement | New senior credit agreement | New senior credit agreement | New senior credit agreement | |||
Term loan facility | Term loan facility | Term loan facility | Revolving credit facility | Revolving credit facility | Term loan facility | Term loan facility | Term loan facility | |||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt including current maturities | $638,750,000 | $646,250,000 | ' | $365,000,000 | $365,000,000 | $273,750,000 | $281,250,000 | ' | $273,750,000 | $281,250,000 | ' | ' | ' | ' | ' | $500,000,000 |
Less current maturities | 192,500,000 | 16,875,000 | ' | ' | ' | ' | ' | ' | 140,750,000 | ' | ' | 33,000,000 | ' | ' | ' | ' |
Long-term debt | 446,250,000 | 629,375,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate (as a percent) | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of voting capital stock of foreign subsidiaries pledged as collateral for borrowing under senior credit agreement (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' |
Amount received under new credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | ' | ' |
Repayment of debt using cash on hand | ' | ' | ' | ' | ' | ' | ' | -140,750,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of debt using proceeds from new term loan | ' | ' | ' | ' | ' | ' | ' | -100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of debt using proceeds from new revolving credit facility | ' | ' | ' | ' | ' | ' | ' | -33,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price of notes | ' | ' | 385,531,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of redeemed notes | ' | ' | 365,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium on redemption of notes | ' | ' | 20,531,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal payments in the next twelve months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,750,000 |
Planned repayment period for revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' |
Debt_Details_2
Debt (Details 2) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Minimum scheduled principal repayments of the term loan | ' | ' |
Long-term debt including current maturities | $638,750,000 | $646,250,000 |
New senior credit agreement | Term loan facility | ' | ' |
Minimum scheduled principal repayments of the term loan | ' | ' |
2014 | 12,500,000 | ' |
2015 | 25,000,000 | ' |
2016 | 31,250,000 | ' |
2017 | 43,750,000 | ' |
2018 | 62,500,000 | ' |
2019 | 325,000,000 | ' |
Long-term debt including current maturities | $500,000,000 | ' |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (7.5% senior notes, USD $) | Mar. 29, 2014 |
Fair Value of Financial Instruments | ' |
Debt instrument, interest rate (as a percent) | 7.50% |
Level one | ' |
Fair Value of Financial Instruments | ' |
Debt instrument, interest rate (as a percent) | 7.50% |
Fair value of 7.5% senior notes | 385,988,000 |
Pension_Plans_Details
Pension Plans (Details) (Pension Plans, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Pension Plans | ' | ' |
Components of net periodic benefit cost: | ' | ' |
Service cost | $524 | $563 |
Interest cost | 1,080 | 1,127 |
Expected return on plan assets | -109 | -191 |
Amortization of prior service credit | -32 | -13 |
Recognized net actuarial loss | 269 | 432 |
Net periodic benefit cost | $1,732 | $1,918 |
Environmental_Matters_Details
Environmental Matters (Details) (Membrana GmbH, USD $) | 3 Months Ended | |
Mar. 29, 2014 | Dec. 28, 2013 | |
Membrana GmbH | ' | ' |
Environmental Matters | ' | ' |
Environmental reserve | $2,633,000 | $2,882,000 |
Period over which expenditures will be made | '12 months | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 29, 2014 | Dec. 28, 2013 | |
Related party transactions | ' | ' |
Ownership percentage in related party | 100.00% | ' |
German Subsidiary | All related parties | ' | ' |
Related party transactions | ' | ' |
Equity method investment | $876,000 | $676,000 |
Charges from the affiliates for work performed | 357,000 | 266,000 |
Amounts due to the affiliates | $155,000 | $254,000 |
German Subsidiary | Patent and trademark service provider | ' | ' |
Related party transactions | ' | ' |
Ownership percentage in related party | 33.00% | ' |
German Subsidiary | Research company | ' | ' |
Related party transactions | ' | ' |
Ownership percentage in related party | 25.00% | ' |
Noncontrolling_Interest_Detail
Noncontrolling Interest (Details) (Daramic Xiangyang, USD $) | 3 Months Ended | ||
Mar. 30, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | |
Noncontrolling Interest | ' | ' | ' |
Ownership percentage of joint venture | ' | 65.00% | ' |
Contributions to joint venture | $1,300,000 | ' | ' |
Principal balance of note payable | ' | 10,348,000 | 5,910,000 |
Camel Group Co., Ltd, Co-Venturer | ' | ' | ' |
Noncontrolling Interest | ' | ' | ' |
Ownership percentage of joint venture | ' | 35.00% | ' |
Contributions to joint venture | $700,000 | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Total Number of Employees, Employees represented under collective bargaining agreements, Selestat, France) | 3 Months Ended |
Mar. 29, 2014 | |
Total Number of Employees | Employees represented under collective bargaining agreements | Selestat, France | ' |
Collective Bargaining Agreements | ' |
Concentration risk (as a percent) | 5.00% |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Details) (USD $) | 3 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||
Mar. 29, 2014 | Mar. 30, 2013 | Feb. 27, 2014 | Mar. 29, 2014 | Feb. 27, 2014 | Mar. 29, 2014 | Feb. 27, 2014 | |
2007 Stock Incentive Plan | 2007 Stock Incentive Plan | 2007 Stock Incentive Plan | 2007 Stock Incentive Plan | 2007 Stock Incentive Plan | |||
Stock option | Stock option | Restricted Stock | |||||
Stock Based Compensation Plans | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | $5,377,000 | $4,467,000 | ' | ' | ' | ' | ' |
Income tax benefit related to stock-based compensation expense | 1,920,000 | 1,587,000 | ' | ' | ' | ' | ' |
Number of shares authorized for grant under 2007 plan | ' | ' | ' | 4,751,963 | ' | ' | ' |
Restricted stock grants (in shares) | ' | ' | ' | ' | ' | ' | 104,474 |
Aggregate grant-date fair value of awards granted | ' | ' | $9,973,000 | ' | ' | ' | ' |
Percentage of shares vesting in equal installments | ' | ' | ' | ' | ' | 33.00% | ' |
Term of Options granted under the plan | ' | ' | ' | ' | ' | '10 years | ' |
Exercise price (in dollars per share) | ' | ' | ' | ' | $34.98 | ' | ' |
Assumptions used in estimation of grant date fair value of options based on the Black Scholes option pricing model | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | '5 years 4 months 24 days | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | ' | 1.60% | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | 53.70% | ' | ' |
Stock Based Compensation Plans | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 369,745 | ' | ' |
Vesting period | ' | ' | ' | ' | ' | '3 years | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
business | ||
segment | ||
Segment Information | ' | ' |
Number of reportable segments | 3 | ' |
Number of primary businesses | 2 | ' |
Financial information relating to the reportable segments | ' | ' |
Net sales | $161,002,000 | $145,941,000 |
Operating income | 22,360,000 | 18,459,000 |
Stock-based compensation | 5,377,000 | 4,467,000 |
Interest expense, net | 9,620,000 | 9,791,000 |
Foreign currency and other | 598,000 | 648,000 |
Income from continuing operations before income taxes | 12,142,000 | 8,020,000 |
Energy storage | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Net sales | 109,173,000 | 100,488,000 |
Operating income | 20,027,000 | 14,222,000 |
Operating segments | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Net sales | 161,002,000 | 145,941,000 |
Operating income | 29,350,000 | 23,898,000 |
Operating segments | Electronics and EDVs | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Net sales | 30,072,000 | 24,375,000 |
Operating income | 3,061,000 | -2,019,000 |
Operating segments | Transportation and industrial | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Net sales | 79,101,000 | 76,113,000 |
Operating income | 16,966,000 | 16,241,000 |
Operating segments | Separations Media | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Net sales | 51,829,000 | 45,453,000 |
Operating income | 17,757,000 | 15,509,000 |
Operating segments | Separations Media | Healthcare | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Net sales | 32,157,000 | 29,498,000 |
Operating segments | Separations Media | Filtration and specialty | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Net sales | 19,672,000 | 15,955,000 |
Corporate and other | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Operating income | -8,434,000 | -5,833,000 |
Material reconciling items | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Stock-based compensation | 5,377,000 | 4,467,000 |
Non-recurring and other costs | $1,613,000 | $972,000 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Financial information relating to the reportable segments | ' | ' |
Depreciation and amortization: | $13,727 | $14,325 |
Discontinued operations | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Depreciation and amortization: | ' | 897 |
Energy storage | Continuing operations | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Depreciation and amortization: | 7,174 | 7,170 |
Operating segments | Electronics and EDVs | Continuing operations | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Depreciation and amortization: | 4,324 | 4,401 |
Operating segments | Transportation and industrial | Continuing operations | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Depreciation and amortization: | 2,850 | 2,769 |
Operating segments | Separations Media | Continuing operations | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Depreciation and amortization: | 3,716 | 3,436 |
Corporate and other | Continuing operations | ' | ' |
Financial information relating to the reportable segments | ' | ' |
Depreciation and amortization: | $2,837 | $2,822 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 19, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | |
Results of operations | ' | ' | ' |
Income from discontinued operations, net of income taxes | ' | $3,364,000 | ' |
Microporous | ' | ' | ' |
Discontinued Operations | ' | ' | ' |
Sale price of assets to be sold | 120,000,000 | ' | ' |
Gain on sale of discontinued operations, net of income taxes | ' | ' | 35,855,000 |
Results of operations | ' | ' | ' |
Net sales | ' | 17,572,000 | ' |
Income from discontinued operations before income taxes | ' | 5,119,000 | ' |
Income from discontinued operations, net of income taxes | ' | $3,364,000 | ' |
Financial_Statements_of_Guaran2
Financial Statements of Guarantors (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 30, 2013 | Dec. 29, 2012 |
Financial Statements of Guarantors | ' | ' | ' | ' |
Ownership percentage in domestic subsidiaries | 100.00% | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $177,441,000 | $163,423,000 | $43,199,000 | $44,873,000 |
Accounts receivable, net | 113,308,000 | 113,506,000 | ' | ' |
Inventories | 113,586,000 | 113,860,000 | ' | ' |
Prepaid and other | 16,362,000 | 18,118,000 | ' | ' |
Total current assets | 420,697,000 | 408,907,000 | ' | ' |
Property, plant and equipment, net | 587,627,000 | 595,375,000 | ' | ' |
Goodwill | 444,512,000 | 444,512,000 | ' | ' |
Intangibles and loan acquisition costs, net | 90,376,000 | 93,792,000 | ' | ' |
Other | 7,617,000 | 7,627,000 | ' | ' |
Total assets | 1,550,829,000 | 1,550,213,000 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 72,577,000 | 81,030,000 | ' | ' |
Income taxes payable | 5,082,000 | 4,055,000 | ' | ' |
Current portion of debt | 192,500,000 | 16,875,000 | ' | ' |
Total current liabilities | 270,159,000 | 101,960,000 | ' | ' |
Debt, less current portion | 446,250,000 | 629,375,000 | ' | ' |
Pension obligations, less current portion | 103,943,000 | 102,821,000 | ' | ' |
Deferred income taxes and other | 95,591,000 | 96,481,000 | ' | ' |
Shareholders' equity | 634,886,000 | 619,576,000 | ' | ' |
Total liabilities and shareholders' equity | 1,550,829,000 | 1,550,213,000 | ' | ' |
Reportable legal entities | Combined Guarantor Subsidiaries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Accounts receivable, net | 32,391,000 | 32,860,000 | ' | ' |
Inventories | 35,743,000 | 38,974,000 | ' | ' |
Prepaid and other | 4,635,000 | 7,541,000 | ' | ' |
Total current assets | 72,769,000 | 79,375,000 | ' | ' |
Due from affiliates | 558,909,000 | 551,141,000 | ' | ' |
Investment in subsidiaries | 126,992,000 | 129,588,000 | ' | ' |
Property, plant and equipment, net | 300,546,000 | 303,888,000 | ' | ' |
Other | 727,000 | 727,000 | ' | ' |
Total assets | 1,059,943,000 | 1,064,719,000 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 19,492,000 | 26,865,000 | ' | ' |
Total current liabilities | 19,492,000 | 26,865,000 | ' | ' |
Due to affiliates | 512,508,000 | 510,356,000 | ' | ' |
Deferred income taxes and other | 48,843,000 | 51,401,000 | ' | ' |
Shareholders' equity | 479,100,000 | 476,097,000 | ' | ' |
Total liabilities and shareholders' equity | 1,059,943,000 | 1,064,719,000 | ' | ' |
Reportable legal entities | Combined Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 50,255,000 | 87,082,000 | 29,336,000 | 28,098,000 |
Accounts receivable, net | 80,917,000 | 80,646,000 | ' | ' |
Inventories | 77,843,000 | 74,886,000 | ' | ' |
Prepaid and other | 8,714,000 | 8,503,000 | ' | ' |
Total current assets | 217,729,000 | 251,117,000 | ' | ' |
Due from affiliates | 945,602,000 | 903,815,000 | ' | ' |
Investment in subsidiaries | 580,635,000 | 577,878,000 | ' | ' |
Property, plant and equipment, net | 287,081,000 | 291,487,000 | ' | ' |
Other | 6,562,000 | 6,755,000 | ' | ' |
Total assets | 2,037,609,000 | 2,031,052,000 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 40,411,000 | 40,916,000 | ' | ' |
Income taxes payable | 5,670,000 | 3,873,000 | ' | ' |
Total current liabilities | 46,081,000 | 44,789,000 | ' | ' |
Due to affiliates | 895,002,000 | 851,659,000 | ' | ' |
Pension obligations, less current portion | 103,943,000 | 102,821,000 | ' | ' |
Deferred income taxes and other | 46,275,000 | 44,788,000 | ' | ' |
Shareholders' equity | 946,308,000 | 986,995,000 | ' | ' |
Total liabilities and shareholders' equity | 2,037,609,000 | 2,031,052,000 | ' | ' |
Reportable legal entities | The Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 127,186,000 | 76,341,000 | 13,863,000 | 16,775,000 |
Prepaid and other | 3,013,000 | 2,074,000 | ' | ' |
Total current assets | 130,199,000 | 78,415,000 | ' | ' |
Due from affiliates | 470,704,000 | 467,441,000 | ' | ' |
Investment in subsidiaries | 717,781,000 | 755,626,000 | ' | ' |
Goodwill | 444,512,000 | 444,512,000 | ' | ' |
Intangibles and loan acquisition costs, net | 90,376,000 | 93,792,000 | ' | ' |
Other | 328,000 | 145,000 | ' | ' |
Total assets | 1,853,900,000 | 1,839,931,000 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 12,674,000 | 13,249,000 | ' | ' |
Income taxes payable | -588,000 | 182,000 | ' | ' |
Current portion of debt | 192,500,000 | 16,875,000 | ' | ' |
Total current liabilities | 204,586,000 | 30,306,000 | ' | ' |
Due to affiliates | 567,705,000 | 560,382,000 | ' | ' |
Debt, less current portion | 446,250,000 | 629,375,000 | ' | ' |
Deferred income taxes and other | 473,000 | 292,000 | ' | ' |
Shareholders' equity | 634,886,000 | 619,576,000 | ' | ' |
Total liabilities and shareholders' equity | 1,853,900,000 | 1,839,931,000 | ' | ' |
Eliminations | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Due from affiliates | -1,975,215,000 | -1,922,397,000 | ' | ' |
Investment in subsidiaries | -1,425,408,000 | -1,463,092,000 | ' | ' |
Total assets | -3,400,623,000 | -3,385,489,000 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Due to affiliates | -1,975,215,000 | -1,922,397,000 | ' | ' |
Shareholders' equity | -1,425,408,000 | -1,463,092,000 | ' | ' |
Total liabilities and shareholders' equity | ($3,400,623,000) | ($3,385,489,000) | ' | ' |
Financial_Statements_of_Guaran3
Financial Statements of Guarantors (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Condensed consolidating statement of income | ' | ' |
Net sales | $161,002 | $145,941 |
Cost of goods sold | 102,486 | 96,746 |
Gross profit | 58,516 | 49,195 |
Selling, general and administrative expenses | 36,156 | 30,736 |
Operating income | 22,360 | 18,459 |
Interest expense and other | 10,218 | 10,439 |
Income from continuing operations before income taxes | 12,142 | 8,020 |
Income taxes | 3,400 | 2,193 |
Income from continuing operations | 8,742 | 5,827 |
Income from discontinued operations, net of income taxes | ' | 3,364 |
Net income | 8,742 | 9,191 |
Less: Net income attributable to noncontrolling interest | 345 | 170 |
Net income attributable to Polypore International, Inc. | 8,397 | 9,021 |
Reportable legal entities | Combined Guarantor Subsidiaries | ' | ' |
Condensed consolidating statement of income | ' | ' |
Net sales | 49,230 | 35,138 |
Cost of goods sold | 23,402 | 16,647 |
Gross profit | 25,828 | 18,491 |
Selling, general and administrative expenses | 19,163 | 15,007 |
Operating income | 6,665 | 3,484 |
Interest expense and other | -1,826 | -1,400 |
Income from continuing operations before income taxes | 8,491 | 4,884 |
Income taxes | 4,582 | 3,910 |
Income from continuing operations | ' | 974 |
Income from discontinued operations, net of income taxes | ' | 1,489 |
Net income | 3,909 | 2,463 |
Net income attributable to Polypore International, Inc. | 3,909 | 2,463 |
Reportable legal entities | Combined Non-Guarantor Subsidiaries | ' | ' |
Condensed consolidating statement of income | ' | ' |
Net sales | 111,772 | 110,803 |
Cost of goods sold | 79,084 | 80,099 |
Gross profit | 32,688 | 30,704 |
Selling, general and administrative expenses | 11,875 | 11,412 |
Operating income | 20,813 | 19,292 |
Interest expense and other | 2,340 | 2,141 |
Income from continuing operations before income taxes | 18,473 | 17,151 |
Income taxes | 4,503 | 5,587 |
Income from continuing operations | ' | 11,564 |
Income from discontinued operations, net of income taxes | ' | 2,060 |
Net income | 13,970 | 13,624 |
Net income attributable to Polypore International, Inc. | 13,970 | 13,624 |
Reportable legal entities | The Company | ' | ' |
Condensed consolidating statement of income | ' | ' |
Selling, general and administrative expenses | 5,118 | 4,317 |
Operating income | -5,118 | -4,317 |
Interest expense and other | 9,704 | 9,698 |
Equity in earnings of subsidiaries | -17,879 | -16,087 |
Income from continuing operations before income taxes | 3,057 | 2,072 |
Income taxes | -5,685 | -7,304 |
Income from continuing operations | ' | 9,376 |
Income from discontinued operations, net of income taxes | ' | -185 |
Net income | 8,742 | 9,191 |
Less: Net income attributable to noncontrolling interest | 345 | 170 |
Net income attributable to Polypore International, Inc. | 8,397 | 9,021 |
Eliminations | ' | ' |
Condensed consolidating statement of income | ' | ' |
Equity in earnings of subsidiaries | 17,879 | 16,087 |
Income from continuing operations before income taxes | -17,879 | -16,087 |
Income from continuing operations | ' | -16,087 |
Net income | -17,879 | -16,087 |
Net income attributable to Polypore International, Inc. | ($17,879) | ($16,087) |
Financial_Statements_of_Guaran4
Financial Statements of Guarantors (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Condensed consolidating statement of comprehensive income | ' | ' |
Net income | $8,742 | $9,191 |
Foreign currency translation adjustment, net of income tax expense (benefit) | 832 | -3,460 |
Foreign currency translation adjustment, income tax expense (benefit) | -172 | -486 |
Change in net actuarial loss and prior service credit, net of income tax benefit (expense) | 22 | 1,039 |
Change in net actuarial loss and prior service credit, income tax expense (benefit) | ' | -136 |
Comprehensive income | 9,596 | 6,770 |
Less: Comprehensive income attributable to noncontrolling interest | 277 | 212 |
Comprehensive income attributable to Polypore International, Inc. | 9,319 | 6,558 |
Reportable legal entities | Combined Guarantor Subsidiaries | ' | ' |
Condensed consolidating statement of comprehensive income | ' | ' |
Net income | 3,909 | 2,463 |
Comprehensive income | 3,909 | 2,463 |
Comprehensive income attributable to Polypore International, Inc. | 3,909 | 2,463 |
Reportable legal entities | Combined Non-Guarantor Subsidiaries | ' | ' |
Condensed consolidating statement of comprehensive income | ' | ' |
Net income | 13,970 | 13,624 |
Foreign currency translation adjustment, net of income tax expense (benefit) | 884 | -4,277 |
Change in net actuarial loss and prior service credit, net of income tax benefit (expense) | 22 | 1,039 |
Comprehensive income | 14,876 | 10,386 |
Comprehensive income attributable to Polypore International, Inc. | 14,876 | 10,386 |
Reportable legal entities | The Company | ' | ' |
Condensed consolidating statement of comprehensive income | ' | ' |
Net income | 8,742 | 9,191 |
Foreign currency translation adjustment, net of income tax expense (benefit) | -278 | 742 |
Equity in earnings of subsidiaries | 1,132 | -3,163 |
Comprehensive income | 9,596 | 6,770 |
Less: Comprehensive income attributable to noncontrolling interest | 277 | 212 |
Comprehensive income attributable to Polypore International, Inc. | 9,319 | 6,558 |
Eliminations | ' | ' |
Condensed consolidating statement of comprehensive income | ' | ' |
Net income | -17,879 | -16,087 |
Foreign currency translation adjustment, net of income tax expense (benefit) | 226 | 75 |
Equity in earnings of subsidiaries | -1,132 | 3,163 |
Comprehensive income | -18,785 | -12,849 |
Comprehensive income attributable to Polypore International, Inc. | ($18,785) | ($12,849) |
Financial_Statements_of_Guaran5
Financial Statements of Guarantors (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Operating activities: | ' | ' |
Net cash provided by (used in) operating activities | $24,283 | $36,355 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment, net | -3,748 | -6,228 |
Net cash used in investing activities | -3,748 | -6,228 |
Financing activities: | ' | ' |
Principal payments on debt | -7,500 | -7,500 |
Payments on revolving credit facility | ' | -25,000 |
Repurchases of common stock | -282 | -476 |
Proceeds from stock option exercises | 619 | 202 |
Contributions from noncontrolling interest | ' | 700 |
Net cash used in financing activities | -7,163 | -32,074 |
Effect of exchange rate changes on cash and cash equivalents | 646 | 273 |
Net increase (decrease) in cash and cash equivalents | 14,018 | -1,674 |
Cash and cash equivalents at beginning of period | 163,423 | 44,873 |
Cash and cash equivalents at end of period | 177,441 | 43,199 |
Reportable legal entities | Combined Guarantor Subsidiaries | ' | ' |
Operating activities: | ' | ' |
Net cash provided by (used in) operating activities | 11,625 | 14,072 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment, net | -707 | -2,261 |
Net cash used in investing activities | -707 | -2,261 |
Financing activities: | ' | ' |
Intercompany transactions, net | -10,918 | -11,811 |
Net cash used in financing activities | -10,918 | -11,811 |
Reportable legal entities | Combined Non-Guarantor Subsidiaries | ' | ' |
Operating activities: | ' | ' |
Net cash provided by (used in) operating activities | 18,599 | 23,661 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment, net | -3,041 | -3,967 |
Net cash used in investing activities | -3,041 | -3,967 |
Financing activities: | ' | ' |
Intercompany transactions, net | -53,031 | -18,729 |
Net cash used in financing activities | -53,031 | -18,729 |
Effect of exchange rate changes on cash and cash equivalents | 646 | 273 |
Net increase (decrease) in cash and cash equivalents | -36,827 | 1,238 |
Cash and cash equivalents at beginning of period | 87,082 | 28,098 |
Cash and cash equivalents at end of period | 50,255 | 29,336 |
Reportable legal entities | The Company | ' | ' |
Operating activities: | ' | ' |
Net cash provided by (used in) operating activities | -6,456 | -3,561 |
Financing activities: | ' | ' |
Principal payments on debt | -7,500 | -7,500 |
Payments on revolving credit facility | ' | -25,000 |
Repurchases of common stock | -282 | -476 |
Proceeds from stock option exercises | 619 | 202 |
Contributions from noncontrolling interest | ' | 700 |
Intercompany transactions, net | 64,464 | 32,723 |
Net cash used in financing activities | 57,301 | 649 |
Net increase (decrease) in cash and cash equivalents | 50,845 | -2,912 |
Cash and cash equivalents at beginning of period | 76,341 | 16,775 |
Cash and cash equivalents at end of period | 127,186 | 13,863 |
Eliminations | ' | ' |
Operating activities: | ' | ' |
Net cash provided by (used in) operating activities | 515 | 2,183 |
Financing activities: | ' | ' |
Intercompany transactions, net | -515 | -2,183 |
Net cash used in financing activities | ($515) | ($2,183) |