A Delaware corporation
|
101 Oakley Street, Evansville, Indiana, 47710
(812) 424-2904
|
IRS employer identification number
20-5234618
|
Class
|
|
Outstanding at May 3, 2018
|
Common Stock, $.01 par value per share
|
|
131.7 million shares
|
Part I.
|
Financial Information
|
Page No.
|
|
|
Item 1.
|
Financial Statements:
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
Item 2.
|
||
|
Item 3.
|
||
|
Item 4.
|
||
Part II.
|
Other Information
|
|
|
|
Item 1.
|
||
|
Item 1A.
|
||
|
Item 6.
|
||
|
Item 1. |
Financial Statements
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
||||||||||||||
|
March 31, 2018
|
April 1, 2017
|
March 31, 2018
|
April 1, 2017
|
||||||||||||
Net sales
|
$
|
1,967
|
$
|
1,806
|
$
|
3,743
|
$
|
3,308
|
||||||||
Costs and expenses:
|
||||||||||||||||
Cost of goods sold
|
1,596
|
1,453
|
3,043
|
2,659
|
||||||||||||
Selling, general and administrative
|
130
|
132
|
247
|
245
|
||||||||||||
Amortization of intangibles
|
38
|
40
|
76
|
73
|
||||||||||||
Restructuring and impairment charges
|
15
|
6
|
26
|
10
|
||||||||||||
Operating income
|
188
|
175
|
351
|
321
|
||||||||||||
Other expense, net
|
5
|
20
|
14
|
19
|
||||||||||||
Interest expense, net
|
66
|
67
|
128
|
135
|
||||||||||||
Income before income taxes
|
117
|
88
|
209
|
167
|
||||||||||||
Income tax expense (benefit)
|
27
|
16
|
(44
|
)
|
44
|
|||||||||||
Net income
|
$
|
90
|
$
|
72
|
$
|
253
|
$
|
123
|
||||||||
|
||||||||||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
0.69
|
$
|
0.56
|
$
|
1.93
|
$
|
0.98
|
||||||||
Diluted
|
0.66
|
0.54
|
1.86
|
0.94
|
||||||||||||
Outstanding weighted-average shares:
|
||||||||||||||||
Basic
|
131.3
|
127.7
|
131.0
|
124.9
|
||||||||||||
Diluted
|
135.8
|
133.2
|
135.9
|
130.7
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
||||||||||||||
|
March 31, 2018
|
April 1, 2017
|
March 31, 2018
|
April 1, 2017
|
||||||||||||
Net income
|
$
|
90
|
$
|
72
|
$
|
253
|
$
|
123
|
||||||||
Currency translation
|
7
|
21
|
(17
|
)
|
(24
|
)
|
||||||||||
Pension and other postretirement benefits
|
—
|
13
|
(1
|
)
|
13
|
|||||||||||
Interest rate hedges
|
23
|
15
|
41
|
33
|
||||||||||||
Provision for income taxes
|
(6
|
)
|
(6
|
)
|
(11
|
)
|
(13
|
)
|
||||||||
Other comprehensive income, net of tax
|
24
|
43
|
12
|
9
|
||||||||||||
Comprehensive income
|
$
|
114
|
$
|
115
|
$
|
265
|
$
|
132
|
|
March 31, 2018
|
September 30, 2017
|
||||||
Assets
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
291
|
$
|
306
|
||||
Accounts receivable (less allowance of $13)
|
918
|
847
|
||||||
Inventories:
|
||||||||
Finished goods
|
562
|
428
|
||||||
Raw materials and supplies
|
389
|
334
|
||||||
|
951
|
762
|
||||||
Prepaid expenses and other current assets
|
101
|
89
|
||||||
Total current assets
|
2,261
|
2,004
|
||||||
Property, plant, and equipment, net
|
2,618
|
2,366
|
||||||
Goodwill and intangible assets, net
|
4,160
|
4,061
|
||||||
Other assets
|
68
|
45
|
||||||
Total assets
|
$
|
9,107
|
$
|
8,476
|
||||
Liabilities
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
718
|
$
|
638
|
||||
Accrued expenses and other current liabilities
|
410
|
463
|
||||||
Current portion of long-term debt
|
34
|
33
|
||||||
Total current liabilities
|
1,162
|
1,134
|
||||||
Long-term debt, less current portion
|
5,992
|
5,608
|
||||||
Deferred income taxes
|
325
|
419
|
||||||
Other long-term liabilities
|
322
|
300
|
||||||
Total liabilities
|
7,801
|
7,461
|
||||||
Stockholders' equity
|
||||||||
Common stock (131.6 and 130.9 million shares issued, respectively)
|
1
|
1
|
||||||
Additional paid-in capital
|
849
|
823
|
||||||
Non-controlling interest
|
3
|
3
|
||||||
Retained earnings
|
509
|
256
|
||||||
Accumulated other comprehensive loss
|
(56
|
)
|
(68
|
)
|
||||
Total stockholders' equity
|
1,306
|
1,015
|
||||||
Total liabilities and stockholders' equity
|
$
|
9,107
|
$
|
8,476
|
|
Two Quarterly Periods Ended
|
|||||||
|
March 31, 2018
|
April 1, 2017
|
||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$
|
253
|
$
|
123
|
||||
Adjustments to reconcile net cash provided by operating activities:
|
||||||||
Depreciation
|
185
|
178
|
||||||
Amortization of intangibles
|
76
|
73
|
||||||
Non-cash interest expense
|
4
|
4
|
||||||
Deferred income tax
|
(102
|
)
|
12
|
|||||
Stock compensation expense
|
14
|
11
|
||||||
Other non-cash operating activities, net
|
12
|
24
|
||||||
Changes in working capital
|
(191
|
)
|
(90
|
)
|
||||
Changes in other assets and liabilities
|
34
|
(2
|
)
|
|||||
Net cash from operating activities
|
285
|
333
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Additions to property, plant and equipment
|
(184
|
)
|
(135
|
)
|
||||
Proceeds from sale of assets
|
3
|
4
|
||||||
Acquisition of business, net of cash acquired
|
(474
|
)
|
(458
|
)
|
||||
Other investing activities, net
|
—
|
(1
|
)
|
|||||
Net cash from investing activities
|
(655
|
)
|
(590
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Proceeds from long-term borrowings
|
497
|
595
|
||||||
Repayments on long-term borrowings
|
(117
|
)
|
(317
|
)
|
||||
Proceeds from issuance of common stock
|
12
|
15
|
||||||
Payment of tax receivable agreement
|
(37
|
)
|
(60
|
)
|
||||
Debt financing costs
|
(1
|
)
|
(4
|
)
|
||||
Net cash from financing activities
|
354
|
229
|
||||||
Effect of exchange rate changes on cash
|
1
|
(2
|
)
|
|||||
Net change in cash
|
(15
|
)
|
(30
|
)
|
||||
Cash and cash equivalents at beginning of period
|
306
|
323
|
||||||
Cash and cash equivalents at end of period
|
$
|
291
|
$
|
293
|
1. |
Basis of Presentation
|
2. |
Recently Issued Accounting Pronouncements
|
3. |
Acquisitions
|
Working capital (a)
|
$
|
70
|
||
Property and equipment
|
239
|
|||
Intangible assets
|
91
|
|||
Goodwill
|
76
|
|||
Other assets and long-term liabilities
|
(2
|
)
|
||
(a) Includes a $3 million step up of inventory to fair value
|
4. |
Accounts Receivable Factoring Agreements
|
5. |
Restructuring and Impairment Charges
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
||||||||||||||
March 31, 2018
|
April 1, 2017
|
March 31, 2018
|
April 1, 2017
|
|||||||||||||
Engineered Materials
|
$
|
2
|
$
|
2
|
$
|
2
|
$
|
2
|
||||||||
Health, Hygiene & Specialties
|
12
|
2
|
22
|
4
|
||||||||||||
Consumer Packaging
|
1
|
2
|
2
|
4
|
||||||||||||
Consolidated
|
$
|
15
|
$
|
6
|
$
|
26
|
$
|
10
|
|
Employee Severance and Benefits
|
Facility Exit
Costs
|
Total
|
|||||||||
Balance at September 30, 2017
|
$
|
14
|
$
|
5
|
$
|
19
|
||||||
Charges
|
25
|
1
|
26
|
|||||||||
Cash payments
|
(17
|
)
|
(2
|
)
|
(19
|
)
|
||||||
Balance at March 31, 2018
|
$
|
22
|
$
|
4
|
$
|
26
|
6. |
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities
|
|
March 31, 2018
|
September 30, 2017
|
||||||
Employee compensation
|
$
|
121
|
$
|
147
|
||||
Accrued taxes
|
72
|
90
|
||||||
Rebates
|
43
|
58
|
||||||
Interest
|
39
|
36
|
||||||
Restructuring
|
26
|
19
|
||||||
Tax receivable agreement obligation
|
24
|
35
|
||||||
Accrued operating expenses
|
85
|
78
|
||||||
$
|
410
|
$
|
463
|
|
March 31, 2018
|
September 30, 2017
|
||||||
Pension liability
|
$
|
53
|
$
|
56
|
||||
Deferred purchase price
|
46
|
46
|
||||||
Lease retirement obligation
|
42
|
37
|
||||||
Transition tax
|
36
|
—
|
||||||
Derivative instruments
|
33
|
27
|
||||||
Sale-lease back deferred gain
|
23
|
24
|
||||||
Tax receivable agreement obligation
|
13
|
34
|
||||||
Other
|
76
|
76
|
||||||
|
$
|
322
|
$
|
300
|
|
Maturity Date
|
March 31, 2018
|
September 30, 2017
|
||||||
Term loan
|
February 2020
|
$
|
900
|
$
|
1,000
|
||||
Term loan
|
January 2021
|
814
|
814
|
||||||
Term loan
|
October 2022
|
1,645
|
1,645
|
||||||
Term loan
|
January 2024
|
495
|
498
|
||||||
Revolving line of credit
|
May 2020
|
—
|
—
|
||||||
5 1/2% Second Priority Senior Secured Notes
|
May 2022
|
500
|
500
|
||||||
6% Second Priority Senior Secured Notes
|
October 2022
|
400
|
400
|
||||||
5 1/8% Second Priority Senior Secured Notes
|
July 2023
|
700
|
700
|
||||||
4 1/2% Second Priority Senior Secured Notes
|
February 2026
|
500
|
—
|
||||||
Debt discounts and deferred fees
|
(48
|
)
|
(48
|
)
|
|||||
Capital leases and other
|
Various
|
120
|
132
|
||||||
Total long-term debt
|
|
6,026
|
5,641
|
||||||
Current portion of long-term debt
|
|
(34
|
)
|
(33
|
)
|
||||
Long-term debt, less current portion
|
|
$
|
5,992
|
$
|
5,608
|
8. |
Financial Instruments and Fair Value Measurements
|
Derivative Instruments
|
Hedge Designation
|
Balance Sheet Location
|
March 31, 2018
|
September 30, 2017
|
||||||
Cross-currency swaps
|
Designated
|
Other long-term liabilities
|
$
|
28
|
$
|
—
|
||||
Interest rate swaps
|
Designated
|
Other assets
|
30
|
1
|
||||||
Interest rate swaps
|
Not designated
|
Other assets
|
3
|
13
|
||||||
Interest rate swaps
|
Designated
|
Other long-term liabilities
|
—
|
15
|
||||||
Interest rate swaps
|
Not designated
|
Other long-term liabilities
|
5
|
13
|
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
||||||||||||||
Derivative Instruments
|
Statements of Income Location
|
March 31, 2018
|
April 1, 2017
|
March 31, 2018
|
April 1, 2017
|
||||||||||||
Cross-currency swaps
|
Interest expense, net
|
$
|
(1
|
)
|
$
|
—
|
$
|
(2
|
)
|
$
|
—
|
||||||
Foreign currency swaps
|
Other expense, net
|
—
|
1
|
—
|
2
|
||||||||||||
Interest rate swaps
|
Interest expense, net
|
1
|
3
|
3
|
8
|
|
As of March 31, 2018
|
|||||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Impairment
|
|||||||||||||||
Indefinite-lived trademarks
|
$
|
—
|
$
|
—
|
$
|
248
|
$
|
248
|
$
|
—
|
||||||||||
Goodwill
|
—
|
—
|
2,857
|
2,857
|
—
|
|||||||||||||||
Definite lived intangible assets
|
—
|
—
|
1,055
|
1,055
|
—
|
|||||||||||||||
Property, plant, and equipment
|
—
|
—
|
2,618
|
2,618
|
—
|
|||||||||||||||
Total
|
$
|
—
|
$
|
—
|
$
|
6,778
|
$
|
6,778
|
$
|
—
|
|
As of September 30, 2017
|
|||||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Impairment
|
|||||||||||||||
Indefinite-lived trademarks
|
$
|
—
|
$
|
—
|
$
|
248
|
$
|
248
|
$
|
—
|
||||||||||
Goodwill
|
—
|
—
|
2,775
|
2,775
|
—
|
|||||||||||||||
Definite lived intangible assets
|
—
|
—
|
1,038
|
1,038
|
—
|
|||||||||||||||
Property, plant, and equipment
|
—
|
—
|
2,366
|
2,366
|
2
|
|||||||||||||||
Total
|
$
|
—
|
$
|
—
|
$
|
6,427
|
$
|
6,427
|
$
|
2
|
9. |
Income Taxes
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
|||||||||||||||
|
March 31, 2018
|
April 1, 2017
|
March 31, 2018
|
April 1, 2017
|
||||||||||||
Net sales:
|
||||||||||||||||
Engineered Materials
|
$
|
655
|
$
|
620
|
$
|
1,303
|
$
|
1,003
|
||||||||
Health, Hygiene & Specialties
|
706
|
597
|
1,283
|
1,167
|
||||||||||||
Consumer Packaging
|
606
|
589
|
1,157
|
1,138
|
||||||||||||
Total net sales
|
$
|
1,967
|
$
|
1,806
|
$
|
3,743
|
$
|
3,308
|
||||||||
Operating income:
|
||||||||||||||||
Engineered Materials
|
$
|
94
|
$
|
67
|
$
|
182
|
$
|
120
|
||||||||
Health, Hygiene & Specialties
|
41
|
52
|
78
|
111
|
||||||||||||
Consumer Packaging
|
53
|
56
|
91
|
90
|
||||||||||||
Total operating income
|
$
|
188
|
$
|
175
|
$
|
351
|
$
|
321
|
||||||||
Depreciation and amortization:
|
||||||||||||||||
Engineered Materials
|
$
|
27
|
$
|
26
|
$
|
56
|
$
|
43
|
||||||||
Health, Hygiene & Specialties
|
49
|
46
|
95
|
90
|
||||||||||||
Consumer Packaging
|
56
|
59
|
110
|
118
|
||||||||||||
Total depreciation and amortization
|
$
|
132
|
$
|
131
|
$
|
261
|
$
|
251
|
|
March 31, 2018
|
September 30, 2017
|
||||||
Total assets:
|
||||||||
Engineered Materials
|
$
|
1,773
|
$
|
1,803
|
||||
Health, Hygiene & Specialties
|
4,068
|
3,496
|
||||||
Consumer Packaging
|
3,266
|
3,177
|
||||||
Total assets
|
$
|
9,107
|
$
|
8,476
|
||||
Total goodwill:
|
||||||||
Engineered Materials
|
$
|
550
|
$
|
545
|
||||
Health, Hygiene & Specialties
|
897
|
819
|
||||||
Consumer Packaging
|
1,410
|
1,411
|
||||||
Total goodwill
|
$
|
2,857
|
$
|
2,775
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
||||||||||||||
|
March 31, 2018
|
April 1, 2017
|
March 31, 2018
|
April 1, 2017
|
||||||||||||
Net sales:
|
||||||||||||||||
North America
|
$
|
1,601
|
$
|
1,500
|
$
|
3,067
|
$
|
2,704
|
||||||||
South America
|
80
|
81
|
154
|
161
|
||||||||||||
Europe
|
226
|
162
|
396
|
311
|
||||||||||||
Asia
|
60
|
63
|
126
|
132
|
||||||||||||
Total net sales
|
$
|
1,967
|
$
|
1,806
|
$
|
3,743
|
$
|
3,308
|
|
March 31, 2018
|
September 30, 2017
|
||||||
Long-lived assets:
|
||||||||
North America
|
$
|
5,647
|
$
|
5,350
|
||||
South America
|
389
|
371
|
||||||
Europe
|
516
|
467
|
||||||
Asia
|
294
|
284
|
||||||
Total Long-lived assets
|
$
|
6,846
|
$
|
6,472
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
||||||||||||||
(in percentages)
|
March 31, 2018
|
April 1, 2017
|
March 31, 2018
|
April 1, 2017
|
||||||||||||
Net sales:
|
||||||||||||||||
Performance Materials
|
45
|
%
|
47
|
%
|
46
|
%
|
46
|
%
|
||||||||
Engineered Products
|
55
|
53
|
54
|
54
|
||||||||||||
Engineered Materials
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
||||||||
Health
|
18
|
%
|
22
|
%
|
19
|
%
|
21
|
%
|
||||||||
Hygiene
|
43
|
43
|
43
|
44
|
||||||||||||
Specialties
|
39
|
35
|
38
|
35
|
||||||||||||
Health, Hygiene & Specialties
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
||||||||
Rigid Open Top
|
41
|
%
|
40
|
%
|
42
|
%
|
41
|
%
|
||||||||
Rigid Closed Top
|
59
|
60
|
58
|
59
|
||||||||||||
Consumer Packaging
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
11. |
Contingencies and Commitments
|
12. |
Basic and Diluted Net Income Per Share
|
|
Quarterly Period Ended
|
Two Quarterly Periods Ended
|
||||||||||||||
(in millions, except per share amounts)
|
March 31, 2018
|
April 1, 2017
|
March 31, 2018
|
April 1, 2017
|
||||||||||||
Numerator
|
||||||||||||||||
Net income
|
$
|
90
|
$
|
72
|
$
|
253
|
$
|
123
|
||||||||
Denominator
|
||||||||||||||||
Weighted average common shares outstanding - basic
|
131.3
|
127.7
|
131.0
|
124.9
|
||||||||||||
Dilutive shares
|
4.5
|
5.5
|
4.9
|
5.8
|
||||||||||||
Weighted average common and common equivalent shares outstanding - diluted
|
135.8
|
133.2
|
135.9
|
130.7
|
||||||||||||
Per common share income
|
||||||||||||||||
Basic
|
$
|
0.69
|
$
|
0.56
|
$
|
1.93
|
$
|
0.98
|
||||||||
Diluted
|
$
|
0.66
|
$
|
0.54
|
$
|
1.86
|
$
|
0.94
|
Currency Translation
|
Defined Benefit Pension and Retiree Health Benefit Plans
|
Interest Rate Swaps
|
Accumulated Other
Comprehensive
Loss
|
|||||||||||||
Balance at September 30, 2017
|
$
|
(48
|
)
|
$
|
(16
|
)
|
$
|
(4
|
)
|
$
|
(68
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
(17
|
)
|
(1
|
)
|
35
|
17
|
||||||||||
Net amount reclassified from accumulated other comprehensive income (loss)
|
—
|
—
|
6
|
6
|
||||||||||||
Provision for income taxes
|
—
|
—
|
(11
|
)
|
(11
|
)
|
||||||||||
Balance at March 31, 2018
|
$
|
(65
|
)
|
$
|
(17
|
)
|
$
|
26
|
$
|
(56
|
)
|
Currency Translation
|
Defined Benefit Pension and Retiree Health Benefit Plans
|
Interest Rate Swaps
|
Accumulated Other
Comprehensive
Loss
|
|||||||||||||
Balance at October 1, 2016
|
$
|
(82
|
)
|
$
|
(44
|
)
|
$
|
(22
|
)
|
$
|
(148
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
(24
|
)
|
13
|
25
|
14
|
|||||||||||
Net amount reclassified from accumulated other comprehensive income (loss)
|
—
|
—
|
8
|
8
|
||||||||||||
Provision for income taxes
|
—
|
—
|
(13
|
)
|
(13
|
)
|
||||||||||
Balance at April 1, 2017
|
$
|
(106
|
)
|
$
|
(31
|
)
|
$
|
(2
|
)
|
$
|
(139
|
)
|
14. |
Guarantor and Non-Guarantor Financial Information
|
|
March 31, 2018
|
|||||||||||||||||||||||
|
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
||||||||||||||||||
Current assets
|
$
|
—
|
$
|
198
|
$
|
1,260
|
$
|
803
|
$
|
—
|
$
|
2,261
|
||||||||||||
Intercompany receivable
|
422
|
2,177
|
—
|
—
|
(2,599
|
)
|
—
|
|||||||||||||||||
Property, plant, and equipment, net
|
—
|
74
|
1,733
|
811
|
—
|
2,618
|
||||||||||||||||||
Other assets
|
1,246
|
5,997
|
4,699
|
521
|
(8,235
|
)
|
4,228
|
|||||||||||||||||
Total assets
|
$
|
1,668
|
$
|
8,446
|
$
|
7,692
|
$
|
2,135
|
$
|
(10,834
|
)
|
$
|
9,107
|
|||||||||||
|
||||||||||||||||||||||||
Current liabilities
|
$
|
24
|
$
|
252
|
$
|
544
|
$
|
342
|
$
|
—
|
$
|
1,162
|
||||||||||||
Intercompany payable
|
—
|
—
|
2,549
|
50
|
(2,599
|
)
|
—
|
|||||||||||||||||
Other long-term liabilities
|
338
|
6,142
|
93
|
66
|
—
|
6,639
|
||||||||||||||||||
Stockholders' equity
|
1,306
|
2,052
|
4,506
|
1,677
|
(8,235
|
)
|
1,306
|
|||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,668
|
$
|
8,446
|
$
|
7,692
|
$
|
2,135
|
$
|
(10,834
|
)
|
$
|
9,107
|
|
September 30, 2017
|
|||||||||||||||||||||||
|
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
||||||||||||||||||
Current assets
|
$
|
—
|
$
|
116
|
$
|
1,113
|
$
|
775
|
$
|
—
|
$
|
2,004
|
||||||||||||
Intercompany receivable
|
512
|
2,217
|
—
|
—
|
(2,729
|
)
|
—
|
|||||||||||||||||
Property, plant and equipment, net
|
—
|
80
|
1,564
|
722
|
—
|
2,366
|
||||||||||||||||||
Other assets
|
992
|
5,335
|
4,583
|
533
|
(7,337
|
)
|
4,106
|
|||||||||||||||||
Total assets
|
$
|
1,504
|
$
|
7,748
|
$
|
7,260
|
$
|
2,030
|
$
|
(10,066
|
)
|
$
|
8,476
|
|||||||||||
|
||||||||||||||||||||||||
Current liabilities
|
$
|
36
|
$
|
243
|
$
|
537
|
$
|
318
|
$
|
—
|
$
|
1,134
|
||||||||||||
Intercompany payable
|
—
|
—
|
2,667
|
62
|
(2,729
|
)
|
—
|
|||||||||||||||||
Other long-term liabilities
|
453
|
5,707
|
99
|
68
|
—
|
6,327
|
||||||||||||||||||
Stockholders' equity
|
1,015
|
1,798
|
3,957
|
1,582
|
(7,337
|
)
|
1,015
|
|||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,504
|
$
|
7,748
|
$
|
7,260
|
$
|
2,030
|
$
|
(10,066
|
)
|
$
|
8,476
|
|
Quarterly Period Ended March 31, 2018
|
|||||||||||||||||||||||
|
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
||||||||||||||||||
Net sales
|
$
|
—
|
$
|
139
|
$
|
1,349
|
$
|
479
|
$
|
—
|
$
|
1,967
|
||||||||||||
Cost of goods sold
|
—
|
95
|
1,103
|
398
|
—
|
1,596
|
||||||||||||||||||
Selling, general and administrative
|
—
|
18
|
83
|
29
|
—
|
130
|
||||||||||||||||||
Amortization of intangibles
|
—
|
—
|
31
|
7
|
—
|
38
|
||||||||||||||||||
Restructuring and impairment charges
|
—
|
—
|
9
|
6
|
—
|
15
|
||||||||||||||||||
Operating income
|
—
|
26
|
123
|
39
|
—
|
188
|
||||||||||||||||||
Other expense (income), net
|
—
|
—
|
—
|
5
|
—
|
5
|
||||||||||||||||||
Interest expense, net
|
—
|
4
|
45
|
17
|
—
|
66
|
||||||||||||||||||
Equity in net income of subsidiaries
|
(117
|
)
|
(87
|
)
|
—
|
—
|
204
|
—
|
||||||||||||||||
Income before income taxes
|
117
|
109
|
78
|
17
|
(204
|
)
|
117
|
|||||||||||||||||
Income tax expense
|
27
|
19
|
1
|
7
|
(27
|
)
|
27
|
|||||||||||||||||
Net income
|
$
|
90
|
$
|
90
|
$
|
77
|
$
|
10
|
$
|
(177
|
)
|
$
|
90
|
|||||||||||
Comprehensive net income
|
$
|
90
|
$
|
94
|
$
|
77
|
$
|
30
|
$
|
(177
|
)
|
$
|
114
|
|
Quarterly Period Ended April 1, 2017
|
|||||||||||||||||||||||
|
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
||||||||||||||||||
Net sales
|
$
|
—
|
$
|
146
|
$
|
1,252
|
$
|
408
|
$
|
—
|
$
|
1,806
|
||||||||||||
Cost of goods sold
|
—
|
117
|
1,012
|
324
|
—
|
1,453
|
||||||||||||||||||
Selling, general and administrative
|
—
|
(11
|
)
|
87
|
56
|
—
|
132
|
|||||||||||||||||
Amortization of intangibles
|
—
|
1
|
31
|
8
|
—
|
40
|
||||||||||||||||||
Restructuring and impairment charges
|
—
|
—
|
6
|
—
|
—
|
6
|
||||||||||||||||||
Operating income
|
—
|
39
|
116
|
20
|
—
|
175
|
||||||||||||||||||
Other expense (income), net
|
—
|
10
|
2
|
8
|
—
|
20
|
||||||||||||||||||
Interest expense, net
|
—
|
6
|
46
|
15
|
—
|
67
|
||||||||||||||||||
Equity in net income of subsidiaries
|
(88
|
)
|
(51
|
)
|
—
|
—
|
139
|
—
|
||||||||||||||||
Income before income taxes
|
88
|
74
|
68
|
(3
|
)
|
(139
|
)
|
88
|
||||||||||||||||
Income tax expense
|
16
|
2
|
—
|
14
|
(16
|
)
|
16
|
|||||||||||||||||
Net income
|
$
|
72
|
$
|
72
|
$
|
68
|
$
|
(17
|
)
|
$
|
(123
|
)
|
$
|
72
|
||||||||||
Comprehensive net income
|
$
|
72
|
$
|
81
|
$
|
68
|
$
|
17
|
$
|
(123
|
)
|
$
|
115
|
|
Two Quarterly Periods Ended March 31, 2018
|
|||||||||||||||||||||||
|
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
||||||||||||||||||
Net sales
|
$
|
—
|
$
|
277
|
$
|
2,574
|
$
|
892
|
$
|
—
|
$
|
3,743
|
||||||||||||
Cost of goods sold
|
—
|
201
|
2,092
|
750
|
—
|
3,043
|
||||||||||||||||||
Selling, general and administrative
|
—
|
30
|
163
|
54
|
—
|
247
|
||||||||||||||||||
Amortization of intangibles
|
—
|
—
|
62
|
14
|
—
|
76
|
||||||||||||||||||
Restructuring and impairment charges
|
—
|
—
|
16
|
10
|
—
|
26
|
||||||||||||||||||
Operating income
|
—
|
46
|
241
|
64
|
—
|
351
|
||||||||||||||||||
Other expense (income), net
|
—
|
5
|
7
|
2
|
—
|
14
|
||||||||||||||||||
Interest expense, net
|
—
|
9
|
88
|
31
|
—
|
128
|
||||||||||||||||||
Equity in net income of subsidiaries
|
(209
|
)
|
(159
|
)
|
—
|
—
|
368
|
—
|
||||||||||||||||
Income before income taxes
|
209
|
191
|
146
|
31
|
(368
|
)
|
209
|
|||||||||||||||||
Income tax expense
|
(44
|
)
|
(62
|
)
|
1
|
17
|
44
|
(44
|
)
|
|||||||||||||||
Net income
|
$
|
253
|
$
|
253
|
$
|
145
|
$
|
14
|
$
|
(412
|
)
|
$
|
253
|
|||||||||||
Comprehensive net income
|
$
|
253
|
$
|
254
|
$
|
145
|
$
|
25
|
$
|
(412
|
)
|
$
|
265
|
|||||||||||
Consolidating Statement of Cash Flows
|
||||||||||||||||||||||||
Cash Flow from Operating Activities
|
$
|
—
|
$
|
14
|
$
|
258
|
$
|
13
|
$
|
—
|
$
|
285
|
||||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
—
|
(5
|
)
|
(137
|
)
|
(42
|
)
|
—
|
(184
|
)
|
||||||||||||||
Proceeds from sale of assets
|
—
|
—
|
—
|
3
|
—
|
3
|
||||||||||||||||||
Contributions (to)/from subsidiaries
|
(12
|
)
|
(462
|
)
|
—
|
—
|
474
|
—
|
||||||||||||||||
Intercompany
|
—
|
137
|
—
|
—
|
(137
|
)
|
—
|
|||||||||||||||||
Acquisition of business, net of cash acquired
|
—
|
—
|
(404
|
)
|
(70
|
)
|
—
|
(474
|
)
|
|||||||||||||||
Other investing activities, net
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net cash from investing activities
|
(12
|
)
|
(330
|
)
|
(541
|
)
|
(109
|
)
|
337
|
(655
|
)
|
|||||||||||||
|
||||||||||||||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term debt
|
—
|
497
|
—
|
—
|
—
|
497
|
||||||||||||||||||
Repayments on long-term borrowings
|
—
|
(113
|
)
|
(4
|
)
|
—
|
—
|
(117
|
)
|
|||||||||||||||
Proceeds from issuance of common stock
|
12
|
—
|
—
|
—
|
—
|
12
|
||||||||||||||||||
Payment of tax receivable agreement
|
(37
|
)
|
—
|
—
|
—
|
—
|
(37
|
)
|
||||||||||||||||
Contribution from Parent
|
—
|
—
|
404
|
70
|
(474
|
)
|
—
|
|||||||||||||||||
Debt financing costs
|
—
|
(1
|
)
|
—
|
—
|
—
|
(1
|
)
|
||||||||||||||||
Changes in intercompany balances
|
37
|
—
|
(116
|
)
|
(58
|
)
|
137
|
—
|
||||||||||||||||
Net cash from financing activities
|
12
|
383
|
284
|
12
|
(337
|
)
|
354
|
|||||||||||||||||
|
||||||||||||||||||||||||
Effect of exchange rate changes on cash
|
—
|
—
|
—
|
1
|
—
|
1
|
||||||||||||||||||
|
||||||||||||||||||||||||
Net change in cash
|
—
|
67
|
1
|
(83
|
)
|
—
|
(15
|
)
|
||||||||||||||||
Cash and cash equivalents at beginning of period
|
—
|
18
|
12
|
276
|
—
|
306
|
||||||||||||||||||
Cash and cash equivalents at end of period
|
$
|
—
|
$
|
85
|
$
|
13
|
$
|
193
|
$
|
—
|
$
|
291
|
|
Two Quarterly Periods Ended April 1, 2017
|
|||||||||||||||||||||||
|
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
||||||||||||||||||
Net sales
|
$
|
—
|
$
|
289
|
$
|
2,231
|
$
|
788
|
$
|
—
|
$
|
3,308
|
||||||||||||
Cost of goods sold
|
—
|
233
|
1,801
|
625
|
—
|
2,659
|
||||||||||||||||||
Selling, general and administrative
|
—
|
31
|
162
|
52
|
—
|
245
|
||||||||||||||||||
Amortization of intangibles
|
—
|
3
|
56
|
14
|
—
|
73
|
||||||||||||||||||
Restructuring and impairment charges
|
—
|
—
|
10
|
—
|
—
|
10
|
||||||||||||||||||
Operating income
|
—
|
22
|
202
|
97
|
—
|
321
|
||||||||||||||||||
Other expense (income), net
|
—
|
14
|
2
|
3
|
—
|
19
|
||||||||||||||||||
Interest expense, net
|
—
|
12
|
91
|
32
|
—
|
135
|
||||||||||||||||||
Equity in net income of subsidiaries
|
(167
|
)
|
(143
|
)
|
—
|
—
|
310
|
—
|
||||||||||||||||
Income before income taxes
|
167
|
139
|
109
|
62
|
(310
|
)
|
167
|
|||||||||||||||||
Income tax expense
|
44
|
16
|
—
|
28
|
(44
|
)
|
44
|
|||||||||||||||||
Net income
|
$
|
123
|
$
|
123
|
$
|
109
|
$
|
34
|
$
|
(266
|
)
|
$
|
123
|
|||||||||||
Comprehensive net income
|
$
|
123
|
$
|
143
|
$
|
109
|
$
|
23
|
$
|
(266
|
)
|
$
|
132
|
|||||||||||
Consolidating Statement of Cash Flows
|
||||||||||||||||||||||||
Cash Flow from Operating Activities
|
$
|
—
|
$
|
24
|
$
|
212
|
$
|
97
|
$
|
—
|
$
|
333
|
||||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
—
|
(8
|
)
|
(97
|
)
|
(30
|
)
|
—
|
(135
|
)
|
||||||||||||||
Proceeds from sale of assets
|
—
|