Consolidating Guarantor and Non-Guarantor Financial Information

6 Months Ended

Jun. 30, 2011

Consolidating Guarantor and Non-Guarantor Financial Information [Abstract]

Consolidating Guarantor and Non-Guarantor Financial Information

19. Consolidating Guarantor and Non-Guarantor Financial Information

The following condensed consolidating financial information presents balance sheets, statements of operations and cash flow information related to our business. Each guarantor is a direct or indirect subsidiary of CVG and has fully and unconditionally guaranteed the 8% senior notes and the 7.875% notes issued by CVG, on a joint and several basis.

The following condensed consolidating financial information presents the financial information of CVG (the “parent company”), the guarantor companies and the non-guarantor companies in accordance with Rule 3-10 under the Securities and Exchange Commission’s Regulation S-X. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor companies or non-guarantor companies operated as independent entities. The guarantor companies and the non-guarantor companies include the consolidated financial results of their wholly owned subsidiaries accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the guarantor and non-guarantor subsidiaries.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2011

	Parent			Guarantor			Non-Guarantor
	Company			Companies			Companies			Elimination			Consolidated
	(In thousands)
REVENUES	$	—		$	159,357		$	67,131		$	(19,712	)	$	206,776
COST OF REVENUES		—			139,038			59,774			(19,712	)		179,100
Gross Profit		—			20,319			7,357			—			27,676
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		—			11,960			4,063			—			16,023
AMORTIZATION EXPENSE		—			94			—			—			94
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES		(4,369	)		(132	)		—			4,501			—
RESTRUCTURING COSTS		—			232			—			—			232
Operating Income		4,369			8,165			3,294			(4,501	)		11,327
OTHER INCOME		—			—			(3	)		—			(3	)
INTEREST EXPENSE		309			4,726			30			—			5,065
LOSS ON EARLY EXTINGUISHMENT OF DEBT		7,448			—			—			—			7,448
(Loss) Income Before (Benefit) Provision for Income Taxes		(3,388	)		3,439			3,267			(4,501	)		(1,183	)
(BENEFIT) PROVISION FOR INCOME TAXES		(1,219	)		1,429			776			—			986
NET (LOSS) INCOME	$	(2,169	)	$	2,010		$	2,491		$	(4,501	)	$	(2,169	)

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2011

	Parent			Guarantor			Non-Guarantor
	Company			Companies			Companies		Elimination			Consolidated
	(In thousands)
REVENUES	$	—		$	293,981		$	132,106	$	(36,802	)	$	389,285
COST OF REVENUES		—			256,801			116,894		(36,802	)		336,893
Gross Profit		—			37,180			15,212		—			52,392
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		—			23,571			8,646		—			32,217
AMORTIZATION EXPENSE		—			190			—		—			190
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES		(7,234	)		(278	)		—		7,512			—
RESTRUCTURING COSTS		—			542			—		—			542
Operating Income		7,234			13,155			6,566		(7,512	)		19,443
OTHER EXPENSE		—			—			3		—			3
INTEREST EXPENSE		688			8,322			36		—			9,046
LOSS ON EARLY EXTINGUISHMENT OF DEBT		7,448			—			—		—			7,448
(Loss) Income Before (Benefit) Provision for Income Taxes		(902	)		4,833			6,527		(7,512	)		2,946
(BENEFIT) PROVISION FOR INCOME TAXES		(2,010	)		2,615			1,233		—			1,838
NET INCOME	$	1,108		$	2,218		$	5,294	$	(7,512	)	$	1,108

CONDENSED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2011

	Parent		Guarantor		Non-Guarantor
	Company		Companies		Companies		Elimination			Consolidated
	(In thousands)
ASSETS
CURRENT ASSETS:
Cash	$	67,911	$	33	$	16,230	$	—		$	84,174
Accounts receivable, net		26		97,197		34,732		—			131,955
Intercompany receivable		81,227		12,516		—		(93,743	)		—
Inventories		—		43,965		26,705		—			70,670
Prepaid expenses and other, net		—		4,880		5,555		—			10,435
Total current assets		149,164		158,591		83,222		(93,743	)		297,234
PROPERTY, PLANT AND EQUIPMENT, net		—		62,668		8,601		—			71,269
EQUITY INVESTMENT IN SUBSIDIARIES		102,588		18,663		309		(121,560	)		—
INTANGIBLE ASSETS, net		—		6,779		—		—			6,779
OTHER ASSETS, net		7,603		9,198		126		—			16,927
TOTAL ASSETS	$	259,355	$	255,899	$	92,258	$	(215,303	)	$	392,209
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
CURRENT LIABILITIES:
Accounts payable	$	—	$	50,723	$	27,444	$	—		$	78,167
Intercompany payable		—		79,843		13,900		(93,743	)		—
Accrued liabilities		3,427		21,420		9,254		—			34,101
Total current liabilities		3,427		151,986		50,598		(93,743	)		112,268
LONG-TERM DEBT		250,000		—		—		—			250,000
PENSION AND OTHER POST-RETIREMENT BENEFITS		—		12,154		10,003		—			22,157
OTHER LONG-TERM LIABILITIES		816		947		909		—			2,672
Total liabilities		254,243		165,087		61,510		(93,743	)		387,097
STOCKHOLDERS’ INVESTMENT		5,112		90,812		30,748		(121,560	)		5,112
TOTAL LIABILITIES AND STOCKHOLDERS’ INVESTMENT	$	259,355	$	255,899	$	92,258	$	(215,303	)	$	392,209

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2011

	Parent			Guarantor			Non-Guarantor
	Company			Companies			Companies			Elimination			Consolidation
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(656	)	$	(17,076	)	$	5,736		$	1		$	(11,995	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		—			(8,130	)		(2,475	)		—			(10,605	)
Proceeds from disposal/sale of property plant and equipment		—			2			19			—			21
Post-acquisition and acquisition payments, net of cash received		—			(8,699	)		—			—			(8,699	)
Long-term supply contracts, other		—			—			—			—			—
Net cash used in investing activities		—			(16,827	)		(2,456	)		—			(19,283	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in intercompany receivables/payables		(35,125	)		33,911			1,215			(1	)		—
Repayment of long-term debt		(170,929	)		—			—			—			(170,929	)
Borrowing of long-term debt		250,000			—			—			—			250,000
Debt issuance costs and other		(6,852	)		—			—			—			(6,852	)
Net cash provided by financing activities		37,094			33,911			1,215			(1	)		72,219
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH		—			(2	)		644			—			642
NET INCREASE IN CASH		36,438			6			5,139			—			41,583
CASH:
Beginning of period		31,473			27			11,091			—			42,591
End of period	$	67,911		$	33		$	16,230		$	—		$	84,174

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2010

	Parent			Guarantor			Non-Guarantor
	Company			Companies			Companies			Elimination			Consolidated
	(In thousands)
REVENUES	$	—		$	108,916		$	43,514		$	(10,081	)	$	142,349
COST OF REVENUES		—			95,170			39,504			(10,081	)		124,593
Gross Profit		—			13,746			4,010			—			17,756
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		—			10,705			2,963			—			13,668
AMORTIZATION EXPENSE		—			60			—			—			60
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES		(1,435	)		(93	)		—			1,528			—
RESTRUCTURING COSTS		—			1,410			—			—			1,410
Operating Income		1,435			1,664			1,047			(1,528	)		2,618
OTHER INCOME		(35	)		—			(1,246	)		—			(1,281	)
INTEREST EXPENSE (INCOME)		3,986			(139	)		60			—			3,907
(Loss) Income Before (Benefit) Provision for Income Taxes		(2,516	)		1,803			2,233			(1,528	)		(8	)
(BENEFIT) PROVISION FOR INCOME TAXES		(3,209	)		1,101			1,407			—			(701	)
NET INCOME	$	693		$	702		$	826		$	(1,528	)	$	693

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2010

	Parent			Guarantor			Non-Guarantor
	Company			Companies			Companies			Elimination			Consolidated
	(In thousands)
REVENUES	$	—		$	224,891		$	82,787		$	(18,922	)	$	288,756
COST OF REVENUES		—			198,132			74,898			(18,922	)		254,108
Gross Profit		—			26,759			7,889			—			34,648
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		—			20,983			5,896			—			26,879
AMORTIZATION EXPENSE		—			120			—			—			120
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES		(4,717	)		(581	)		—			5,298			—
RESTRUCTURING COSTS		—			1,410			—			—			1,410
Operating Income		4,717			4,827			1,993			(5,298	)		6,239
OTHER INCOME		(35	)		—			(2,705	)		—			(2,740	)
INTEREST EXPENSE (INCOME)		8,496			(157	)		82			—			8,421
(Loss) Income Before (Benefit) Provision for Income Taxes		(3,744	)		4,984			4,616			(5,298	)		558
(BENEFIT) PROVISION FOR INCOME TAXES		(5,113	)		2,636			1,666			—			(811	)
NET INCOME	$	1,369		$	2,348		$	2,950		$	(5,298	)	$	1,369

CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2010

	Parent			Guarantor		Non-Guarantor
	Company			Companies		Companies		Elimination			Consolidated
	(In thousands)
ASSETS
CURRENT ASSETS:
Cash	$	31,473		$	27	$	11,091	$	—		$	42,591
Accounts receivable, net		220			63,172		27,708		1			91,101
Intercompany receivable		46,102			942		—		(47,044	)		—
Inventories		—			38,284		28,340		(2	)		66,622
Prepaid expenses and other, net		—			6,490		4,659		(40	)		11,109
Total current assets		77,795			108,915		71,798		(47,085	)		211,423
PROPERTY, PLANT AND EQUIPMENT, net		—			52,875		6,446		—			59,321
EQUITY INVESTMENT IN SUBSIDIARIES		91,238			9,559		—		(100,797	)		—
INTANGIBLE ASSETS, net		—			3,848		—		—			3,848
OTHER ASSETS, net		2,600			8,986		28		1			11,615
TOTAL ASSETS	$	171,633		$	184,183	$	78,272	$	(147,881	)	$	286,207
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) INVESTMENT
CURRENT LIABILITIES:
Accounts payable	$	—		$	37,657	$	23,559	$	—		$	61,216
Intercompany payable		—			34,359		12,685		(47,044	)		—
Accrued liabilities		6,092			19,931		8,147		(40	)		34,130
Total current liabilities		6,092			91,947		44,391		(47,084	)		95,346
LONG-TERM DEBT		164,987			—		—		—			164,987
PENSION AND OTHER POST-RETIREMENT BENEFITS		—			13,253		10,090		—			23,343
OTHER LONG-TERM LIABILITIES		666			911		1,066		—			2,643
Total liabilities		171,745			106,111		55,547		(47,084	)		286,319
STOCKHOLDERS’ (DEFICIT) INVESTMENT		(112	)		78,072		22,725		(100,797	)		(112	)
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) INVESTMENT	$	171,633		$	184,183	$	78,272	$	(147,881	)	$	286,207

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010

	Parent			Guarantor			Non-Guarantor
	Company			Companies			Companies			Elimination		Consolidation
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	736		$	20,413		$	(1,104	)	$	—	$	20,045
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		—			(2,451	)		(319	)		—		(2,770	)
Proceeds from disposal/sale of property plant and equipment		—			53			12			—		65
Other assets and liabilities		—			196			—			—		196
Net cash used in investing activities		—			(2,202	)		(307	)		—		(2,509	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net		25,359			—			—			—		25,359
Proceeds from issuance of common stock under equity incentive plans		1,126			—			—			—		1,126
Excess tax benefit from equity incentive plans		(52	)		—			—			—		(52	)
Change in intercompany receivables/payables		17,541			(18,227	)		686			—		—
Net cash provided by (used in) financing activities		43,974			(18,227	)		686			—		26,433
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH		—			1			(1,123	)		—		(1,122	)
NET INCREASE (DECREASE) IN CASH		44,710			(15	)		(1,848	)		—		42,847
CASH:
Beginning of period		9			38			9,477			—		9,524
End of period	$	44,719		$	23		$	7,629		$	—	$	52,371