Condensed Consolidating Financial Statements

12 Months Ended

Dec. 25, 2011

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

Note 17. Condensed Consolidating Financial Statements

The Company has $625.0 million in outstanding Notes (See Note 5). The Notes are guaranteed by all of the Company’s 100% owned domestic subsidiaries (the “Subsidiary Guarantors”) and are collateralized by the assets of all of the Company’s 100% owned subsidiaries. The Notes are fully and unconditionally guaranteed on a joint and several basis by each Subsidiary Guarantor and the Company. There are no contractual restrictions limiting cash transfers from Subsidiary Guarantors through dividends, loans or advances to the Company. The Notes are not guaranteed by the Company’s foreign subsidiaries (the “Non-Guarantor Subsidiaries”).

The following tables present condensed consolidating financial statements for the parent company, the Subsidiary Guarantors and the Non-Guarantor Subsidiaries, respectively, for 2011. In 2010, all Non-Guarantor Subsidiaries were minor and as a result condensed consolidating financial statements are not required for 2010. The consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation.

Condensed Consolidating Balance Sheet

December 25, 2011

	Parent Company		Subsidiary Guarantors on a Combined Basis		Non- Guarantor Subsidiaries on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	52.6	$	2.8	$	14.2	$	—		$	69.6
Accounts receivable, net	—		225.4		19.9		—			245.3
Amounts due from affiliated companies	446.2		—		—		(446.2		)	—
Inventoried costs	—		64.2		12.4		—			76.6
Other current assets	6.7		18.4		4.4		—			29.5
Total current assets	505.5		310.8		50.9		(446.2		)	421.0
Property, plant and equipment, net	1.2		62.2		9.1		—			72.5
Goodwill	—		550.2		21.4		—			571.6
Intangible assets, net	—		119.8		4.8		—			124.6
Investment in subsidiaries	460.1		20.5		—		(480.6		)	—
Amounts due from affiliated companies	—		26.0		—		(26.0		)	—
Other assets	21.7		4.0		0.6		—			26.3
Total assets	$	988.5	$	1,093.5	$	86.8	$	(952.8	)	$	1,216.0
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	8.5	$	37.5	$	2.8	$	—		$	48.8
Accrued expenses	2.3		45.1		3.3		—			50.7
Accrued compensation	3.7		33.3		2.8		—			39.8
Billings in excess of costs and earnings on uncompleted contracts	—		34.3		1.9		—			36.2
Deferred income tax liability	—		8.5		—		—			8.5
Amounts due to affiliated companies	—		414.5		31.7		(446.2		)	—
Other current liabilities	5.9		21.7		2.2		—			29.8
Total current liabilities	20.4		594.9		44.7		(446.2		)	213.8
Long-term debt, net of current portion	647.8		—		5.8		—			653.6
Amounts due to affiliated companies	—		—		26.0		(26.0		)	—
Deferred income tax liability	—		2.5		—		—			2.5
Other long-term liabilities	7.7		23.8		2.0		—			33.5
Total liabilities	675.9		621.2		78.5		(472.2		)	903.4
Total stockholders’ equity	312.6		472.3		8.3		(480.6		)	312.6
Total liabilities and stockholders’ equity	$	988.5	$	1,093.5	$	86.8	$	(952.8	)	$	1,216.0

Condensed Consolidating Statement of Operations and Comprehensive Income

For the Year Ended December 25, 2011

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non- Guarantor Subsidiaries on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	349.3		$	1.7		$	—		$	351.0
Product sales	—			327.4			46.9			(11.4		)	362.9
Total revenues	—			676.7			48.6			(11.4		)	713.9
Cost of service revenues	—			259.2			1.5			—			260.7
Cost of product sales	—			242.5			30.9			(11.4		)	262.0
Total costs	—			501.7			32.4			(11.4		)	522.7
Gross profit	—			175.0			16.2			—			191.2
Selling, general and administrative expenses	15.9			122.3			14.9			—			153.1
Research and development expenses	—			7.9			0.7			—			8.6
Operating income (loss) from continuing operations	(15.9		)	44.8			0.6			—			29.5
Other income (expense):
Interest expense, net	(50.8		)	0.1			(0.4		)	—			(51.1		)
Other income, net	0.3			0.4			(0.7		)	—			—
Total other income and expense, net	(50.5		)	0.5			(1.1		)	—			(51.1		)
Income (loss) from continuing operations before income taxes	(66.4		)	45.3			(0.5		)	—			(21.6		)
Provision (benefit) for income taxes from continuing operations	—			3.0			(1.1		)	—			1.9
Income (loss) from continuing operations	(66.4		)	42.3			0.6			—			(23.5		)
Income (loss) from discontinued operations	—			(0.8		)	0.1			—			(0.7		)
Equity in net income (loss) of subsidiaries	42.2			0.5			—			(42.7		)	—
Net income (loss)	$	(24.2	)		42.0		$	0.7		$	(42.7	)	$	(24.2	)
Comprehensive income (loss)	$	(24.4	)	$	41.7		$	0.8		$	(42.5	)	$	(24.4	)

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 25, 2011

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non- Guarantor Subsidiaries on a Combined Basis			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(55.1	)	$	60.5		$	(0.2	)	$	—	$	5.2
Investing activities:
Cash paid for acquisitions, net of cash acquired	(421.0		)	18.0			11.9			—		(391.1		)
Decrease in restricted cash	1.4			1.6			—			—		3.0
Capital expenditures	(0.2		)	(6.3		)	(1.0		)	—		(7.5		)
Net cash provided by (used in) investing activities from continuing operations	(419.8		)	13.3			10.9			—		(395.6		)
Financing activities:
Proceeds from the issuance of long-term debt	425.7			—			—			—		425.7
Issuance of common stock, net of issuance proceeds	61.1			—			—			—		61.1
Purchase of treasury stock	(10.9		)	—			—			—		(10.9		)
Debt issuance costs	(22.1		)	—			—			—		(22.1		)
Repayment of debt	—			(2.6		)	(0.8		)	—		(3.4		)
Financing from affiliated companies	63.6			(68.6		)	5.0			—		—
Other, net	2.0			—			—			—		2.0
Net cash provided by (used in) financing activities from continuing operations	519.4			(71.2		)	4.2			—		452.4
Net cash flows of continuing operations	44.5			2.6			14.9			—		62.0
Net operating cash flows from discontinued operations	—			(2.2		)	(0.5		)	—		(2.7		)
Effect of exchange rate changes on cash and cash equivalents	—			(0.3		)	(0.2		)	—		(0.5		)
Net increase in cash and cash equivalents	$	44.5		$	0.1		$	14.2		$	—	$	58.8