Delaware
|
20-5234618
|
(State or other jurisdiction
of incorporation or organization)
|
(IRS employer
identification number)
|
101 Oakley Street
Evansville, Indiana
|
47710
|
(Address of principal executive offices)
|
(Zip code)
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.01 par value per share
|
New York Stock Exchange
|
·
|
risks associated with our substantial indebtedness and debt service;
|
·
|
changes in prices and availability of resin and other raw materials and our ability to pass on changes in raw material prices on a timely basis;
|
·
|
performance of our business and future operating results;
|
·
|
risks related to our acquisition strategy and integration of acquired businesses;
|
·
|
reliance on unpatented know-how and trade secrets;
|
·
|
increases in the cost of compliance with laws and regulations, including environmental, safety, and production and product laws and regulations;
|
·
|
risks related to disruptions in the overall economy and the financial markets that may adversely impact our business;
|
·
|
catastrophic loss of one of our key manufacturing facilities, natural disasters, and other unplanned business interruptions;
|
·
|
risks of competition, including foreign competition, in our existing and future markets;
|
·
|
general business and economic conditions, particularly an economic downturn;
|
·
|
risks that our restructuring program may entail greater implementation costs or result in lower cost savings than anticipated;
|
·
|
the ability of our insurance to cover fully our potential exposures; and
|
·
|
the other factors discussed in our Form 10-K for the fiscal year ended September 28, 2013 in the section titled “Risk Factors.”
|
Part I.
|
Financial Information
|
Page No.
|
|
Item 1.
|
|||
Item 2.
|
Management’s Discussion and Analysis of
|
||
Item 3.
|
|||
Item 4.
|
|||
Part II.
|
Other Information
|
||
Item 1.
|
|||
Item 1A.
|
|||
Item 2.
|
|||
Item 3.
|
|||
Item 4.
|
|||
Item 5.
|
|||
Item 6.
|
|||
December 28, 2013
|
September 28, 2013
|
|||||||
Assets
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 162 | $ | 142 | ||||
Accounts receivable (less allowance of $3 at December 28, 2013 and September 28, 2013)
|
405 | 449 | ||||||
Inventories:
|
||||||||
Finished goods
|
333 | 335 | ||||||
Raw materials and supplies
|
239 | 240 | ||||||
572 | 575 | |||||||
Deferred income taxes
|
260 | 139 | ||||||
Prepaid expenses and other current assets
|
45 | 32 | ||||||
Total current assets
|
1,444 | 1,337 | ||||||
Property, plant, and equipment, net
|
1,280 | 1,266 | ||||||
Goodwill, intangible assets and deferred costs, net
|
2,528 | 2,520 | ||||||
Other assets
|
12 | 12 | ||||||
Total assets
|
$ | 5,264 | $ | 5,135 | ||||
Liabilities and stockholders’ equity (deficit)
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 362 | $ | 337 | ||||
Accrued expenses and other current liabilities
|
327 | 276 | ||||||
Current portion of long-term debt
|
74 | 71 | ||||||
Total current liabilities
|
763 | 684 | ||||||
Long-term debt, less current portion
|
3,875 | 3,875 | ||||||
Deferred income taxes
|
509 | 385 | ||||||
Other long-term liabilities
|
300 | 387 | ||||||
Total liabilities
|
5,447 | 5,331 | ||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity (deficit):
|
||||||||
Common stock; ($0.01 par value; 400,000,000 shares authorized; 116,279,187 shares issued and 116,208,703 shares outstanding as of December 28, 2013; 115,895,927 issued and 115,825,443 outstanding as of September 28, 2013)
|
1 | 1 | ||||||
Additional paid-in capital
|
330 | 322 | ||||||
Non-controlling interest
|
3 | 3 | ||||||
Accumulated deficit
|
(498 | ) | (504 | ) | ||||
Accumulated other comprehensive loss
|
(19 | ) | (18 | ) | ||||
Total stockholders’ equity (deficit)
|
(183 | ) | (196 | ) | ||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 5,264 | $ | 5,135 |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Net sales
|
$ | 1,140 | $ | 1,072 | ||||
Costs and expenses:
|
||||||||
Cost of goods sold
|
964 | 895 | ||||||
Selling, general and administrative
|
77 | 77 | ||||||
Amortization of intangibles
|
26 | 27 | ||||||
Restructuring and impairment charges
|
10 | 5 | ||||||
Operating income
|
63 | 68 | ||||||
Debt extinguishment
|
— | 16 | ||||||
Other income, net
|
(1 | ) | (3 | ) | ||||
Interest expense, net
|
55 | 70 | ||||||
Income (loss) before income taxes
|
9 | (15 | ) | |||||
Income tax expense (benefit)
|
3 | (5 | ) | |||||
Net income (loss)
|
$ | 6 | $ | (10 | ) | |||
Comprehensive income (loss)
|
$ | 5 | $ | (7 | ) | |||
Net income (loss) per share:
|
||||||||
Basic
|
$ | 0.05 | $ | (0.09 | ) | |||
Diluted
|
0.05 | (0.09 | ) | |||||
Outstanding weighted-average shares:
(in thousands)
|
||||||||
Basic
|
115,933 | 111,352 | ||||||
Diluted
|
120,479 | 111,352 | ||||||
Common Stock
|
Paid-in Capital
|
Notes Receivable-Common Stock
|
Non-controlling Interest
|
Accumulated Other Comprehensive Loss
|
Accumulated Deficit
|
Total
|
||||||||||||||||||||||
Balance at September 29, 2012
|
$ | 1 | $ | 131 | $ | (2 | ) | $ | 3 | $ | (47 | ) | $ | (561 | ) | $ | (475 | ) | ||||||||||
Proceeds from issuance of common stock
|
— | 4 | — | — | — | — | 4 | |||||||||||||||||||||
Stock compensation expense
|
— | 4 | — | — | — | — | 4 | |||||||||||||||||||||
Termination of redeemable shares redemption requirement
|
— | 23 | — | — | — | — | 23 | |||||||||||||||||||||
Proceeds from initial public offering
|
— | 438 | — | — | — | — | 438 | |||||||||||||||||||||
Initial obligation under tax receivable agreement
|
— | (300 | ) | — | — | — | — | (300 | ) | |||||||||||||||||||
Derivative amortization
|
— | — | — | — | 1 | — | 1 | |||||||||||||||||||||
Net loss
|
— | — | — | — | — | (10 | ) | (10 | ) | |||||||||||||||||||
Currency translation
|
— | — | — | — | 2 | — | 2 | |||||||||||||||||||||
Balance at December 29, 2012
|
$ | 1 | $ | 300 | $ | (2 | ) | $ | 3 | $ | (44 | ) | $ | (571 | ) | $ | (313 | ) | ||||||||||
Balance at September 28, 2013
|
$ | 1 | $ | 322 | $ | — | $ | 3 | $ | (18 | ) | $ | (504 | ) | $ | (196 | ) | |||||||||||
Proceeds from issuance of common stock
|
— | 3 | — | — | — | — | 3 | |||||||||||||||||||||
Stock compensation expense
|
— | 5 | — | — | — | — | 5 | |||||||||||||||||||||
Net income
|
— | — | — | — | — | 6 | 6 | |||||||||||||||||||||
Currency translation
|
— | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
Balance at December 28, 2013
|
$ | 1 | $ | 330 | $ | — | $ | 3 | $ | (19 | ) | $ | (498 | ) | $ | (183 | ) |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net income (loss)
|
$ | 6 | $ | (10 | ) | |||
Adjustments to reconcile net cash provided by operating activities:
|
||||||||
Depreciation
|
59 | 60 | ||||||
Amortization of intangibles
|
26 | 27 | ||||||
Non-cash interest expense
|
2 | 5 | ||||||
Deferred income tax
|
4 | (5 | ) | |||||
Debt extinguishment
|
— | 16 | ||||||
Stock compensation expense
|
5 | 4 | ||||||
Impairment of long-lived assets
|
2 | — | ||||||
Other non-cash items
|
1 | 1 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable, net
|
51 | 61 | ||||||
Inventories
|
14 | (14 | ) | |||||
Prepaid expenses and other assets
|
(4 | ) | 12 | |||||
Accounts payable and other liabilities
|
6 | (70 | ) | |||||
Net cash from operating activities
|
172 | 87 | ||||||
Cash Flows from Investing Activities:
|
||||||||
Additions to property, plant and equipment
|
(47 | ) | (45 | ) | ||||
Proceeds from sale of assets
|
1 | 2 | ||||||
Deposit on acquisition of business
|
(5 | ) | — | |||||
Acquisition of business, net of cash acquired
|
(62 | ) | (20 | ) | ||||
Net cash from investing activities
|
(113 | ) | (63 | ) | ||||
Cash Flows from Financing Activities:
|
||||||||
Proceeds from long-term borrowings
|
3 | 1 | ||||||
Repayments on long-term borrowings
|
(13 | ) | (522 | ) | ||||
Proceeds from issuance of common stock
|
3 | 4 | ||||||
Payment of tax receivable agreement
|
(32 | ) | — | |||||
Proceeds from initial public offering
|
— | 438 | ||||||
Net cash from financing activities
|
(39 | ) | (79 | ) | ||||
Effect of exchange rate changes on cash
|
— | — | ||||||
Net change in cash
|
20 | (55 | ) | |||||
Cash and cash equivalents at beginning of period
|
142 | 87 | ||||||
Cash and cash equivalents at end of period
|
$ | 162 | $ | 32 |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Rigid Open Top
|
||||||||
Severance and termination benefits
|
$ | 1 | $ | 1 | ||||
Total
|
$ | 1 | $ | 1 | ||||
Rigid Closed Top
|
||||||||
Severance and termination benefits
|
$ | — | $ | 1 | ||||
Facility exit costs and other
|
— | 1 | ||||||
Asset impairment
|
— | — | ||||||
Total
|
$ | — | $ | 2 | ||||
Engineered Materials
|
||||||||
Severance and termination benefits
|
$ | 1 | $ | 1 | ||||
Facility exit costs and other
|
— | — | ||||||
Asset impairment
|
2 | — | ||||||
Total
|
$ | 3 | $ | 1 | ||||
Flexible Packaging
|
||||||||
Severance and termination benefits
|
$ | 3 | $ | — | ||||
Facility exit costs and other
|
3 | 1 | ||||||
Asset impairment
|
— | — | ||||||
Total
|
$ | 6 | $ | 1 | ||||
Consolidated
|
||||||||
Severance and termination benefits
|
$ | 5 | $ | 3 | ||||
Facility exit costs and other
|
3 | 2 | ||||||
Asset impairment
|
2 | — | ||||||
Total
|
$ | 10 | $ | 5 |
Severance and termination benefits
|
Facilities exit costs and other
|
Non-cash
|
Total
|
|||||||||||||
Balance at September 29, 2012
|
$ | 4 | $ | 3 | $ | — | $ | 7 | ||||||||
Charges
|
5 | 3 | 6 | 14 | ||||||||||||
Non-cash asset impairment
|
— | — | (6 | ) | (6 | ) | ||||||||||
Cash payments
|
(7 | ) | (4 | ) | — | (11 | ) | |||||||||
Balance at September 28, 2013
|
2 | 2 | — | 4 | ||||||||||||
Charges
|
5 | 3 | 2 | 10 | ||||||||||||
Non-cash asset impairment
|
— | — | (2 | ) | (2 | ) | ||||||||||
Cash payments
|
(1 | ) | (3 | ) | — | (4 | ) | |||||||||
Balance at December 28, 2013
|
$ | 6 | $ | 2 | $ | — | $ | 8 |
December 28, 2013
|
September 28, 2013
|
|||||||
Employee compensation, payroll and other taxes
|
$ | 68 | $ | 86 | ||||
Interest
|
51 | 45 | ||||||
Rebates
|
62 | 55 | ||||||
Tax receivable agreement obligation
|
85 | 32 | ||||||
Other
|
61 | 58 | ||||||
$ | 327 | $ | 276 |
December 28, 2013
|
September 28, 2013
|
|||||||
Lease retirement obligation
|
$ | 23 | $ | 22 | ||||
Sale-lease back deferred gain
|
31 | 32 | ||||||
Pension liability
|
41 | 43 | ||||||
Tax receivable agreement obligation
|
191 | 277 | ||||||
Other
|
14 | 13 | ||||||
$ | 300 | $ | 387 |
Maturity Date
|
December 28, 2013
|
September 28, 2013
|
|||||||
Term loan
|
April 2015
|
$ | 1,122 | $ | 1,125 | ||||
Term loan
|
February 2020
|
1,393 | 1,397 | ||||||
Revolving line of credit
|
June 2016
|
— | — | ||||||
9½% Second Priority Senior Secured Notes
|
May 2018
|
500 | 500 | ||||||
9¾% Second Priority Senior Secured Notes
|
January 2021
|
800 | 800 | ||||||
Senior Unsecured Term Loan
|
June 2014
|
18 | 18 | ||||||
Debt discount, net
|
(7 | ) | (8 | ) | |||||
Capital leases and other
|
Various
|
123 | 114 | ||||||
3,949 | 3,946 | ||||||||
Less current portion of long-term debt
|
(74 | ) | (71 | ) | |||||
$ | 3,875 | $ | 3,875 |
Liability Derivatives
|
|||||||||
Derivatives instruments
|
Balance Sheet Location
|
December 28, 2013
|
September 28, 2013
|
||||||
Interest rate swaps — 2010 Swaps
|
Other long-term liabilities
|
$ | — | $ | 1 |
Quarterly Period Ended
|
|||||||||
Derivatives not designated as hedging
instruments under FASB guidance
|
Statement of Operations Location
|
December 28, 2013
|
December 29, 2012
|
||||||
Interest rate swaps — 2010 Swaps
|
Other income
|
$ | (1 | ) | $ | (1 | ) | ||
Interest expense
|
$ | 1 | $ | 1 |
As of December 28, 2013
|
|||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
Total
|
Quarterly Period Ended
December 28, 2013 Impairment Loss
|
|||||||||||||||||
Indefinite-lived trademarks
|
$ | — | $ | — | $ | 207 | $ | 207 | $ | — | |||||||||||
Goodwill
|
— | — | 1,644 | 1,644 | — | ||||||||||||||||
Definite lived intangible assets
|
— | — | 649 | 649 | — | ||||||||||||||||
Property, plant, and equipment
|
— | — | 1,280 | 1,280 | 2 | ||||||||||||||||
Total
|
$ | — | $ | — | $ | 3,780 | $ | 3,780 | $ | 2 |
As of September 28, 2013
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
Total
|
Fiscal 2013
Impairment Loss
|
||||||||||||||||
Indefinite-lived trademarks
|
$ | — | $ | — | $ | 207 | $ | 207 | $ | — | ||||||||||
Goodwill
|
— | — | 1,634 | 1,634 | — | |||||||||||||||
Definite lived intangible assets
|
— | — | 649 | 649 | 5 | |||||||||||||||
Property, plant, and equipment
|
— | — | 1,266 | 1,266 | — | |||||||||||||||
Total
|
$ | — | $ | — | $ | 3,756 | $ | 3,756 | $ | 5 |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29,
2012
|
|||||||
Income tax benefit computed at statutory rate
|
$ | 3 | $ | (5 | ) | |||
State income tax benefit, net of federal taxes
|
— | — | ||||||
Uncertain tax position
|
(1 | ) | — | |||||
Other
|
1 | — | ||||||
Income tax expense (benefit)
|
$ | 3 | $ | (5 | ) |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Net sales:
|
||||||||
Rigid Open Top
|
$ | 261 | $ | 259 | ||||
Rigid Closed Top
|
332 | 313 | ||||||
Rigid Packaging
|
$ | 593 | $ | 572 | ||||
Engineered Materials
|
342 | 325 | ||||||
Flexible Packaging
|
205 | 175 | ||||||
Total net sales
|
$ | 1,140 | $ | 1,072 | ||||
Operating income (loss):
|
||||||||
Rigid Open Top
|
$ | 13 | $ | 27 | ||||
Rigid Closed Top
|
30 | 18 | ||||||
Rigid Packaging
|
$ | 43 | $ | 45 | ||||
Engineered Materials
|
25 | 24 | ||||||
Flexible Packaging
|
(5 | ) | (1 | ) | ||||
Total operating income
|
$ | 63 | $ | 68 | ||||
Depreciation and amortization:
|
||||||||
Rigid Open Top
|
$ | 23 | $ | 23 | ||||
Rigid Closed Top
|
30 | 32 | ||||||
Rigid Packaging
|
$ | 53 | $ | 55 | ||||
Engineered Materials
|
19 | 18 | ||||||
Flexible Packaging
|
13 | 14 | ||||||
Total depreciation and amortization
|
$ | 85 | $ | 87 |
December 28, 2013
|
September 28, 2013
|
|||||||||||
Total assets:
|
||||||||||||
Rigid Open Top
|
$ | 1,802 | $ | 1,805 | ||||||||
Rigid Closed Top
|
1,995 | 1,964 | ||||||||||
Rigid Packaging | $ | 3,797 | $ | 3,769 | ||||||||
Engineered Materials
|
823 | 817 | ||||||||||
Flexible Packaging
|
644 | 549 | ||||||||||
Total assets
|
$ | 5,264 | $ | 5,135 | ||||||||
Goodwill:
|
||||||||||||
Rigid Open Top
|
$ | 681 | $ | 681 | ||||||||
Rigid Closed Top
|
830 | 831 | ||||||||||
Rigid Packaging
|
$ | 1,511 | $ | 1,512 | ||||||||
Engineered Materials
|
73 | 73 | ||||||||||
Flexible Packaging
|
60 | 49 | ||||||||||
Total goodwill
|
$ | 1,644 | $ | 1,634 |
December 28, 2013
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non—
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Current assets
|
260 | 212 | 824 | 158 | (10 | ) | 1,444 | |||||||||||||||||
Intercompany receivable
|
327 | 3,423 | — | 49 | (3,799 | ) | — | |||||||||||||||||
Property, plant and equipment, net
|
— | 91 | 1,120 | 69 | — | 1,280 | ||||||||||||||||||
Other assets
|
765 | 1,100 | 2,290 | 759 | (2,374 | ) | 2,540 | |||||||||||||||||
Total assets
|
$ | 1,352 | $ | 4,826 | $ | 4,234 | $ | 1,035 | $ | (6,183 | ) | $ | 5,264 | |||||||||||
Current liabilities
|
94 | 193 | 411 | 75 | (10 | ) | 763 | |||||||||||||||||
Intercompany payable
|
— | — | 3,799 | — | (3,799 | ) | — | |||||||||||||||||
Other long-term liabilities
|
1,441 | 3,915 | 41 | 5 | (718 | ) | 4,684 | |||||||||||||||||
Stockholders’ equity (deficit)
|
(183 | ) | 718 | (17 | ) | 955 | (1,656 | ) | (183 | ) | ||||||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 1,352 | $ | 4,826 | $ | 4,234 | $ | 1,035 | $ | (6,183 | ) | $ | 5,264 |
September 28, 2013
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Current assets
|
139 | 186 | 864 | 158 | (10 | ) | 1,337 | |||||||||||||||||
Intercompany receivable
|
348 | 3,448 | — | 40 | (3,836 | ) | — | |||||||||||||||||
Property, plant and equipment, net
|
— | 115 | 1,079 | 72 | — | 1,266 | ||||||||||||||||||
Other assets
|
768 | 1,054 | 2,277 | 737 | (2,304 | ) | 2,532 | |||||||||||||||||
Total assets
|
$ | 1,255 | $ | 4,803 | $ | 4,220 | $ | 1,007 | $ | (6,150 | ) | $ | 5,135 | |||||||||||
Current liabilities
|
41 | 197 | 374 | 83 | (11 | ) | 684 | |||||||||||||||||
Intercompany payable
|
— | — | 3,837 | — | (3,837 | ) | — | |||||||||||||||||
Other long-term liabilities
|
1,410 | 3,919 | 44 | 6 | (732 | ) | 4,647 | |||||||||||||||||
Stockholders’ equity (deficit)
|
(196 | ) | 687 | (35 | ) | 918 | (1,570 | ) | (196 | ) | ||||||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 1,255 | $ | 4,803 | $ | 4,220 | $ | 1,007 | $ | (6,150 | ) | $ | 5,135 |
Quarterly Period Ended December 28, 2013
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | — | $ | 146 | $ | 907 | $ | 87 | $ | — | $ | 1,140 | ||||||||||||
Cost of goods sold
|
— | 131 | 762 | 71 | — | 964 | ||||||||||||||||||
Selling, general and administrative
|
— | 19 | 51 | 7 | — | 77 | ||||||||||||||||||
Amortization of intangibles
|
— | 3 | 21 | 2 | — | 26 | ||||||||||||||||||
Restructuring and impairment charges
|
— | — | 10 | — | — | 10 | ||||||||||||||||||
Operating income (loss)
|
— | (7 | ) | 63 | 7 | — | 63 | |||||||||||||||||
Debt extinguishment
|
— | — | — | — | — | — | ||||||||||||||||||
Other income, net
|
— | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||
Interest expense, net
|
13 | 6 | 44 | (33 | ) | 25 | 55 | |||||||||||||||||
Equity in net income of subsidiaries
|
(22 | ) | (58 | ) | — | — | 80 | — | ||||||||||||||||
Income (loss) before income taxes
|
9 | 46 | 19 | 40 | (105 | ) | 9 | |||||||||||||||||
Income tax expense (benefit)
|
3 | 16 | — | 1 | (17 | ) | 3 | |||||||||||||||||
Net income (loss)
|
$ | 6 | $ | 30 | $ | 19 | $ | 39 | $ | (88 | ) | $ | 6 | |||||||||||
Comprehensive income (loss)
|
$ | 6 | $ | 30 | $ | 19 | $ | 38 | $ | (88 | ) | $ | 5 |
Consolidating Statement of Cash Flows
|
||||||||||||||||||||||||
Cash Flow from Operating Activities
|
$ | — | $ | — | $ | 162 | $ | 10 | $ | — | $ | 172 | ||||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
— | (2 | ) | (44 | ) | (1 | ) | — | (47 | ) | ||||||||||||||
Proceeds from sale of assets
|
— | — | 1 | — | — | 1 | ||||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
(3 | ) | 3 | — | — | — | — | |||||||||||||||||
Intercompany advances (repayments)
|
— | 30 | — | — | (30 | ) | — | |||||||||||||||||
Deposit on acquisition of business
|
— | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Acquisition of business, net of cash acquired
|
— | — | (62 | ) | — | — | (62 | ) | ||||||||||||||||
Net cash from investing activities
|
(3 | ) | 31 | (105 | ) | (6 | ) | (30 | ) | (113 | ) | |||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term borrowings
|
— | — | — | 3 | — | 3 | ||||||||||||||||||
Proceeds from issuance of common stock
|
3 | — | — | — | — | 3 | ||||||||||||||||||
Payment of tax receivable agreement
|
(32 | ) | — | — | — | — | (32 | ) | ||||||||||||||||
Repayments on long-term borrowings
|
— | (13 | ) | — | — | — | (13 | ) | ||||||||||||||||
Changes in intercompany balances
|
32 | — | (57 | ) | (5 | ) | 30 | — | ||||||||||||||||
Net cash provided from financing activities
|
3 | (13 | ) | (57 | ) | (2 | ) | 30 | (39 | ) | ||||||||||||||
Effect of exchange rate on cash
|
— | — | — | — | — | — | ||||||||||||||||||
Net change in cash
|
— | 18 | — | 2 | — | 20 | ||||||||||||||||||
Cash and cash equivalents at beginning of period
|
— | 116 | — | 26 | — | 142 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | — | $ | 134 | $ | — | $ | 28 | $ | — | $ | 162 |
Quarterly Period Ended December 29, 2012
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non—
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | — | $ | 133 | $ | 849 | $ | 90 | $ | — | $ | 1,072 | ||||||||||||
Cost of goods sold
|
— | 137 | 694 | 64 | — | 895 | ||||||||||||||||||
Selling, general and administrative
|
— | 10 | 58 | 9 | — | 77 | ||||||||||||||||||
Amortization of intangibles
|
— | 3 | 23 | 1 | — | 27 | ||||||||||||||||||
Restructuring and impairment charges
|
— | — | 5 | — | — | 5 | ||||||||||||||||||
Operating income (loss)
|
— | (17 | ) | 69 | 16 | — | 68 | |||||||||||||||||
Debt extinguishment
|
— | 16 | — | — | — | 16 | ||||||||||||||||||
Other income, net
|
— | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||
Interest expense, net
|
11 | 9 | 55 | (31 | ) | 26 | 70 | |||||||||||||||||
Equity in net income of subsidiaries
|
(4 | ) | (62 | ) | — | — | 58 | — | ||||||||||||||||
Income (loss) before income taxes
|
(15 | ) | 23 | 14 | 47 | (84 | ) | (15 | ) | |||||||||||||||
Income tax expense (benefit)
|
(5 | ) | 10 | (1 | ) | — | (9 | ) | (5 | ) | ||||||||||||||
Net income (loss)
|
$ | (10 | ) | $ | 13 | $ | 15 | $ | 47 | $ | (75 | ) | $ | (10 | ) | |||||||||
Comprehensive income (loss)
|
$ | (10 | ) | $ | 14 | $ | 15 | $ | 49 | $ | (75 | ) | $ | (7 | ) |
Consolidating Statement of Cash Flows
|
||||||||||||||||||||||||
Cash Flow from Operating Activities
|
$ | — | $ | (21 | ) | $ | 95 | $ | 13 | $ | — | $ | 87 | |||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
— | (2 | ) | (42 | ) | (1 | ) | — | (45 | ) | ||||||||||||||
Proceeds from sale of assets
|
— | — | 2 | — | — | 2 | ||||||||||||||||||
Investment in Parent
|
— | — | — | (21 | ) | 21 | — | |||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
(442 | ) | 421 | — | — | 21 | — | |||||||||||||||||
Intercompany advances (repayments)
|
— | 46 | — | — | (46 | ) | — | |||||||||||||||||
Acquisition of business, net of cash acquired
|
— | — | (20 | ) | — | — | (20 | ) | ||||||||||||||||
Net cash from investing activities
|
(442 | ) | 465 | (60 | ) | (22 | ) | (4 | ) | (63 | ) | |||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term borrowings
|
— | — | — | 1 | — | 1 | ||||||||||||||||||
Proceeds from issuance of common stock
|
4 | — | — | — | — | 4 | ||||||||||||||||||
Proceeds from initial public offering
|
438 | — | — | — | — | 438 | ||||||||||||||||||
Repayments of long-term borrowings
|
— | (501 | ) | — | — | (21 | ) | (522 | ) | |||||||||||||||
Changes in intercompany balances
|
— | — | (34 | ) | (12 | ) | 46 | — | ||||||||||||||||
Contribution from Issuer
|
— | — | — | 21 | (21 | ) | — | |||||||||||||||||
Net cash from financing activities
|
442 | (501 | ) | (34 | ) | 10 | 4 | (79 | ) | |||||||||||||||
Effect of exchange rate on cash
|
— | — | — | — | — | — | ||||||||||||||||||
Net change in cash
|
— | (57 | ) | 1 | 1 | — | (55 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of period
|
— | 66 | — | 21 |