Guarantor Subsidiaries

6 Months Ended

Jul. 02, 2011

Guarantor Subsidiaries [Abstract]

Guarantor Subsidiaries

16. Guarantor Subsidiaries

All of the Company’s direct and indirect 100% owned U.S. domestic subsidiaries are guarantors of the Company’s Senior Secured Notes. The following condensed consolidating financial statements present separately the financial position, results of operations, and cash flows for (a) the Company, as parent, (b) the guarantor subsidiaries of the Company consisting of all of the, directly or indirectly, 100% owned U.S. subsidiaries of the Company, (c) the non-guarantor subsidiaries of the Company consisting of all non-domestic subsidiaries of the Company, and (d) eliminations necessary to arrive at the Company’s information on a consolidated basis. These statements are presented in accordance with the disclosure requirements under the Securities and Exchange Commission’s Regulation S-X, Rule 3-10. Separate financial statements of the Guarantor Subsidiaries are not presented because their guarantees are full and unconditional and joint and several.

Unaudited Condensed Consolidating Balance Sheet
July 2, 2011

			Guarantor		Non Guarantor
	Issuer		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	56,542	$	33,945	$	—		$	90,487
Trade receivables, less allowance for doubtful accounts		—		56,163		52,210		—			108,373
Loans receivable from related parties		288,188		—		—		(288,188	)		—
Inventories		—		67,675		51,955		—			119,630
Deferred income taxes		—		3,814		599		—			4,413
Income tax receivable		—		3,834		—		—			3,834
Prepaid expenses and other current assets		—		3,599		3,113		—			6,712
Total current assets		288,188		191,627		141,822		(288,188	)		333,449
Property, plant and equipment, net		—		74,968		50,604		—			125,572
Intangible assets, net		—		52,294		30,475		—			82,769
Goodwill		—		56,446		28,626		—			85,072
Deferred income taxes		—		—		78		—			78
Investment in subsidiaries		180,901		—		—		(180,901	)		—
Other non-current assets		8,152		7,838		568		—			16,558
Total assets	$	477,241	$	383,173	$	252,173	$	(469,089	)	$	643,498
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	27,395	$	22,434	$	—		$	49,829
Accrued payroll		—		8,191		11,286		—			19,477
Accruals and other current liabilities		2,201		15,535		20,778		—			38,514
Deferred income taxes		—		—		54		—			54
Current portion of long-term debt		—		589		369		—			958
Loans payable to related parties		—		206,119		82,069		(288,188	)		—
Total current liabilities		2,201		257,829		136,990		(288,188	)		108,832
Long-term debt — less current portion and net of unacreted discount		269,140		3,184		2,152		—			274,476
Deferred income taxes		—		21,931		8,056		—			29,987
Pension liablities		—		5,703		6,312		—			12,015
Long-term taxes payable		—		11,283		—		—			11,283
Other long-term liabilities		—		774		231		—			1,005
Total stockholders’ equity		205,900		82,469		98,432		(180,901	)		205,900
Total liabilities and stockholders’ equity	$	477,241	$	383,173	$	252,173	$	(469,089	)	$	643,498

Condensed Consolidating Balance Sheet
December 31, 2010

			Guarantor		Non Guarantor
	Issuer		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	37,125	$	35,598	$	—		$	72,723
Trade receivables, less allowance for doubtful accounts		—		44,020		23,383		—			67,403
Loans receivable from related parties		204,667		—		—		(204,667	)		—
Inventories		—		63,226		24,991		—			88,217
Deferred income taxes		—		3,813		601		—			4,414
Assets held for sale		—		1,484		—		—			1,484
Income tax receivable		—		4,126		—		—			4,126
Prepaid expenses and other current assets		—		2,282		1,886		—			4,168
Total current assets		204,667		156,076		86,459		(204,667	)		242,535
Property, plant and equipment, net		—		74,956		30,342		—			105,298
Intangible assets, net		—		54,321		14,929		—			69,250
Goodwill		—		56,446		20,451		—			76,897
Deferred income taxes		—		—		82		—			82
Investment in subsidiaries		163,069		—		—		(163,069	)		—
Other non-current assets		6,020		7,905		115		—			14,040
Total assets	$	373,756	$	349,704	$	152,378	$	(367,736	)	$	508,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	26,497	$	14,315	$	—		$	40,812
Accrued payroll		—		12,364		6,122		—			18,486
Accruals and other current liabilities		1,422		15,458		7,262		—			24,142
Deferred income taxes		—		—		59		—			59
Current portion of long-term debt		—		3,028		365		—			3,393
Loans payable to related parties		—		185,768		18,899		(204,667	)		—
Total current liabilities		1,422		243,115		47,022		(204,667	)		86,892
Long-term debt — less current portion and net of unaccreted discount		207,582		3,338		2,189		—			213,109
Deferred income taxes		—		13,043		7,515		—			20,558
Pension liablities		—		7,596		3,212		—			10,808
Other post retirement benefits		—		223		—		—			223
Long-term taxes payables		—		10,892		—		—			10,892
Other long-term liabilities		—		762		106		—			868
Total stockholders’ equity		164,752		70,735		92,334		(163,069	)		164,752
Total liabilities and stockholders’ equity	$	373,756	$	349,704	$	152,378	$	(367,736	)	$	508,102

Unaudited Condensed Consolidating Statement of Income

	Year to Date Ended July 2, 2011
				Guarantor			Non-Guarantor
	Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	233,802		$	112,444		$	(21,004	)	$	325,242
Cost of sales		—			169,729			80,272			(21,004	)		228,997
Gross profit		—			64,073			32,172			—			96,245
Selling, general and administrative expenses		—			35,044			17,384			—			52,428
Research and development expenses		—			2,656			2,087			—			4,743
Income from operations		—			26,373			12,701			—			39,074
Interest expense, net		10,870			406			40			—			11,316
Other non-operating income, net		—			(463	)		(422	)		—			(885	)
Equity in earnings of subsidiaries		27,776			—			—			(27,776	)		—
Income before income taxes		16,906			26,430			13,083			(27,776	)		28,643
Provision (benefit) for income taxes		(2,734	)		9,251			2,486			—			9,003
Net income	$	19,640		$	17,179		$	10,597		$	(27,776	)	$	19,640

Unaudited Condensed Consolidating Statement of Income

	Year to Date Ended July 3, 2010
				Guarantor		Non-Guarantor
	Issuer			Subsidiaries		Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	196,482	$	83,680	$	(19,468	)	$	260,694
Cost of sales		—			145,340		57,292		(19,468	)		183,164
Gross profit		—			51,142		26,388		—			77,530
Selling, general and administrative expenses		46			29,214		13,927		—			43,187
Research and development expenses		—			2,048		1,362		—			3,410
Restructuring costs		—			978		710		—			1,688
Income (loss) from operations		(46	)		18,902		10,389		—			29,245
Interest expense, net		9,061			724		111		—			9,896
Other non-operating expense, net		—			126		896		—			1,022
Equity in earnings of subsidiaries		17,832			—		—		(17,832	)		—
Income before income taxes		8,725			18,052		9,382		(17,832	)		18,327
Provision (benefit) for income taxes		(3,853	)		6,318		3,284		—			5,749
Net income	$	12,578		$	11,734	$	6,098	$	(17,832	)	$	12,578

Unaudited Condensed Consolidating Statement of Income

	Quarter Ended July 2, 2011
				Guarantor			Non-Guarantor
	Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	114,241		$	61,559		$	(10,405	)	$	165,395
Cost of sales		—			82,066			45,324			(10,405	)		116,985
Gross profit		—			32,175			16,235			—			48,410
Selling, general and administrative expenses		—			17,372			9,540			—			26,912
Research and development expenses		—			1,232			1,194			—			2,426
Income from operations		—			13,571			5,501			—			19,072
Interest expense, net		5,913			222			18			—			6,153
Other non-operating income, net		—			(321	)		(278	)		—			(599	)
Equity in earnings of subsidiaries		13,551			—			—			(13,551	)		—
Income before income taxes		7,638			13,670			5,761			(13,551	)		13,518
Provision (benefit) for income taxes		(1,280	)		4,785			1,095			—			4,600
Net income	$	8,918		$	8,885		$	4,666		$	(13,551	)	$	8,918

Unaudited Condensed Consolidating Statement of Income

	Quarter Ended July 3, 2010
				Guarantor		Non-Guarantor
	Issuer			Subsidiaries		Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	101,398	$	41,686	$	(10,096	)	$	132,988
Cost of sales		—			74,026		28,931		(10,096	)		92,861
Gross profit		—			27,372		12,755		—			40,127
Selling, general and administrative expenses		20			15,718		6,477		—			22,215
Research and development expenses		—			964		667		—			1,631
Restructuring costs		—			180		462		—			642
Income (loss) from operations		(20	)		10,510		5,149		—			15,639
Interest expense, net		4,565			339		52		—			4,956
Other non-operating expense, net		—			52		675		—			727
Equity in earnings of subsidiaries		8,807			—		—		(8,807	)		—
Income before income taxes		4,222			10,119		4,422		(8,807	)		9,956
Provision (benefit) for income taxes		(2,617	)		3,938		1,796		—			3,117
Net income	$	6,839		$	6,181	$	2,626	$	(8,807	)	$	6,839

Unaudited Condensed Consolidating Statement of Cash Flows

	Year to Date Ended July 2, 2011
				Guarantor			Non-Guarantor
	Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	19,640		$	17,179		$	6,098		$	(23,277	)	$	19,640
Undistributed equity in earnings of subsidiaries		(23,277	)		—			—			23,277			—
Adjustments to reconcile net income to net cash flows:														—
Depreciation		—			5,422			2,998			—			8,420
Amortization of intangible assets		—			2,070			793			—			2,863
Amortization and write-offs of deferred financing costs		560			224			—			—			784
Loss on foreign currency, net		—			—			(158	)		—			(158	)
Accretion of debt discount, net		1,045			—			—			—			1,045
Stock-based compensation		—			1,374			—			—			1,374
Changes in assets and liabilities:														—
Trade receivables		—			(12,786	)		(9,489	)		—			(22,275	)
Inventories		—			(3,750	)		(4,568	)		—			(8,318	)
Accounts payable and accrued liabilities		779			(2,071	)		7,593			—			6,301
Other current assets and liabilities		—			(1,317	)		692			—			(625	)
Other operating assets and liabilities		—			(2,161	)		265			—			(1,896	)
Net cash provided by (used in) operating activities		(1,253	)		4,184			4,224			—			7,155
Cash flows used in investing activities
Purchase of property, plant and equipement		—			(5,179	)		(3,719	)		—			(8,898	)
Acquisition of Bauer net of cash $41 thousand cash received		—			(1,146	)		(61,145	)		—			(62,291	)
Proceeds from sale of Chattanooga		—			1,484			—			—			1,484
Net cash used in investing activities		—			(4,841	)		(64,864	)		—			(69,705	)
Cash flows from financing activities
Proceeds from issuance of Convertible Notes		85,000			—			—			—			85,000
Payment of debt issuance costs		(3,414	)		—			—			—			(3,414	)
Shares surrendered for tax withholdings		(65	)		—			—			—			(65	)
Redemption of bonds related to Chattanooga		—			(2,290	)		—			—			(2,290	)
Payments on mortgages		—			—			(197	)		—			(197	)
Payments on capital leases		—			(151	)		(249	)		—			(400	)
Change in affiliate debt		(80,268	)		22,515			57,753			—			—
Net cash provided by financing activities		1,253			20,074			57,307			—			78,634
Effect of exchange rate changes on cash and cash equivalents		—			—			1,680						1,680
Net change in cash and cash equivalents		—			19,417			(1,653	)		—			17,764
Cash and cash equivalents at beginning of year		—			37,125			35,598			—			72,723
Cash and cash equivalents at end of period	$	—		$	56,542		$	33,945		$	—		$	90,487

Unaudited Condensed Consolidating Statement of Cash Flows

	Year to Date Ended July 3, 2010
				Guarantor			Non-Guarantor
	Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	12,578		$	11,734		$	6,098		$	(17,832	)	$	12,578
Undistributed equity in earnings of subsidiaries		(17,832	)		—			—			17,832			—
Adjustments to reconcile net income to net cash flows:
Depreciation		—			6,289			1,903			—			8,192
Amortization of intangible assets		—			2,025			325			—			2,350
Amortization and write-offs of deferred financing costs		416			—			—			—			416
Fixed asset impairment/disposal		—			207			—			—			207
Loss on foreign currency, net		—			—			361			—			361
Accretion of debt discount		148			—			—			—			148
Stock based compensation		—			1,120			—			—			1,120
Changes in assets and liabilities:
Trade receivables		—			(12,494	)		(6,076	)		—			(18,570	)
Inventories		—			(1,616	)		(2,407	)		—			(4,023	)
Accounts payable and accrued liabilities		879			13,300			4,920			—			19,099
Other current assets and liabilities		—			(953	)		(719	)		—			(1,672	)
Other operating assets and liabilities		(77	)		(74	)		(22	)		—			(173	)
Net cash provided by (used in) operating activities		(3,888	)		19,538			4,383			—			20,033
Cash flows from investing activities
Purchase of fixed assets		—			(6,783	)		(979	)		—			(7,762	)
Additional purchase price paid for acquisition		—			(645	)		(532	)		—			(1,177	)
Net cash used in investing activities		—			(7,428	)		(1,511	)		—			(8,939	)
Cash flows from financing activities
Payment of debt issuance costs		(123	)		1			—			—			(122	)
Shares surrendered for tax withholdings		(288	)		—			—			—			(288	)
Payments on mortgages		—			—			(418	)		—			(418	)
Change in affiliate debt		4,299			(6,562	)		2,263			—			—
Payment on capital leases		—			(318	)		(63	)		—			(381	)
Net cash (used in) provided by financing activities		3,888			(6,879	)		1,782			—			(1,209	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(3,179	)		—			(3,179	)
Net change in cash and cash equivalents		—			5,231			1,475			—			6,706
Cash and cash equivalents at beginning of year		1			19,744			31,752			—			51,497
Cash and cash equivalents at end of period	$	1		$	24,975		$	33,227		$	—		$	58,203