15. Guarantor and Non-Guarantor Financial Information

Berry Plastics Corporation ("Issuer") has notes outstanding which are fully, jointly, severally, and unconditionally guaranteed by substantially all of Berry's domestic subsidiaries. Separate narrative information or financial statements of the guarantor subsidiaries have not been included because they are 100% owned by the parent company and the guarantor subsidiaries unconditionally guarantee such debt on a joint and several basis. A guarantee of a guarantor of the securities will terminate upon the following customary circumstances: the sale of the capital stock of such guarantor if such sale complies with the indenture, the designation of such guarantor as an unrestricted subsidiary, the defeasance or discharge of the indenture, as a result of the holders of certain other indebtedness foreclosing on a pledge of the shares of a guarantor subsidiary or if such guarantor no longer guarantees certain other indebtedness of the issuer. The guarantees are also limited as necessary to prevent them from constituting a fraudulent conveyance under applicable law and guarantees guaranteeing subordinated debt are subordinated to certain other of the Company's debts. Presented below is condensed consolidating financial information for the parent, issuer, guarantor subsidiaries and non-guarantor subsidiaries. Our issuer and guarantor financial information includes all of our domestic operating subsidiaries, our non-guarantor subsidiaries include our foreign subsidiaries and BP Parallel, LLC. BP Parallel, LLC is the entity that we established to buyback debt securities of Berry Plastics Group, Inc. and Berry Plastics Corporation. Berry Plastics Group, Inc. uses the equity method to account for its ownership in Berry Plastics Corporation in the Condensed Consolidating Supplemental Financial Statements. Berry Plastics Corporation uses the equity method to account for its ownership in the guarantor and non-guarantor subsidiaries. All consolidating entries are included in the eliminations column along with the elimination of intercompany balances.

Condensed Supplemental Consolidated Statements of Operations


	Fiscal 2013
										Non-
								Guarantor		Guarantor
		Parent			Issuer			Subsidiaries		Subsidiaries			Eliminations			Total
Net sales	$	-		$	571		$	3,706	$	370		$	-		$	4,647
Cost of sales		-			506			3,021		308			-			3,835
Selling, general and administrative expenses		-			58			314		40			-			412
Restructuring and impairment charges, net		-			1			13		-			-			14
Operating income		-			6			358		22			-			386
Other income		-			56			1		-			-			57
Interest expense, net		47			24			201		(120	)		92			244
Equity in net income of subsidiaries		(132	)		(297	)		-		-			429			-

Net income (loss) before income taxes		85			223			156		142			(521	)		85
Income tax expense (benefit)		28			80			-		2			(82	)		28
Net income (loss)	$	57		$	143		$	156	$	140		$	(439	)	$	57
Currency translation		-			-			-		(5	)		-			(5	)
Interest rate hedges		-			20			-		-			-			20
Defined benefit pension and retiree benefit plans		-			34			-		-			-			34
Provision for income taxes related to other
comprehensive income items		-			(20	)		-		-			-			(20	)
Comprehensive income (loss)	$	57		$	177		$	156	$	135		$	(439	)	$	86


	Fiscal 2012
											Non-
								Guarantor			Guarantor
		Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	-		$	579		$	3,829		$	358		$	-		$	4,766
Cost of sales		-			520			3,151			313			-			3,984
Selling, general and administrative expenses		-			62			329			35			-			426
Restructuring and impairment charges, net		-			1			29			1			-			31
Operating income (loss)		-			(4	)		320			9			-			325
Other income		-			(7	)		-			-			-			(7	)
Interest expense, net		54			39			261			(110	)		84			328
Equity in net income of subsidiaries		(58	)		(173	)		-			-			231			-

Net income (loss) before income taxes		4			137			59			119			(315	)		4
Income tax expense (benefit)		2			46			1			3			(50	)		2
Net income (loss)	$	2		$	91		$	58		$	116		$	(265	)	$	2
Currency translation		-			-			-			6			-			6
Interest rate hedges		-			4			-			-			-			4
Defined benefit pension and retiree benefit plans		-			-			(14	)		-			-			(14	)
Provision for income taxes related to other
comprehensive income items		-			(1	)		6			-			-			5
Comprehensive income (loss)	$	2		$	94		$	50		$	122		$	(265	)	$	3


	Fiscal 2011
											Non-
								Guarantor			Guarantor
		Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	-		$	695		$	3,503		$	363		$	-		$	4,561
Cost of sales		-			617			2,948			343			-			3,908
Selling, general and administrative expenses		-			65			295			30			-			390
Restructuring and impairment charges, net		-			30			190			1			-			221
Operating income (loss)		-			(17	)		70			(11	)		-			42
Other income		-			62			(1	)		-			-			61
Interest expense, net		50			49			249			(77	)		56			327
Equity in net income of subsidiaries		296			85			-			-			(381	)		-
Net income (loss) before income taxes		(346	)		(213	)		(178	)		66			325			(346	)
Income tax expense (benefit)		(47	)		16			(29	)		2			11			(47	)
Net income (loss)	$	(299	)	$	(229	)	$	(149	)	$	64		$	314		$	(299	)
Currency translation		-			-			-			(10	)		-			(10	)
Interest rate hedges		-			(8	)		-			-			-			(8	)
Defined benefit pension and retiree benefit plans		-			-			(14	)		-			-			(14	)
Provision for income taxes related to other
comprehensive income items		-			2			5			-			-			7
Comprehensive income (loss)	$	(299	)	$	(235	)	$	(158	)	$	54		$	314		$	(324	)

Condensed Supplemental Consolidated Balance Sheet As of fiscal year-end 2013


										Non-
							Guarantor			Guarantor
		Parent			Issuer		Subsidiaries			Subsidiaries		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	-		$	116	$	-		$	26	$	-		$	142
Accounts receivable, net of allowance		-			5		371			73		-			449
Intercompany receivable		348			3,448		-			40		(3,836	)		-
Inventories		-			53		482			40		-			575
Deferred income taxes		139			-		-			-		-			139
Prepaid expenses and other current		-			12		11			19		(10	)		32
Total current assets		487			3,634		864			198		(3,846	)		1,337
Property, plant and equipment, net		-			115		1,079			72		-			1,266
Intangible assets, net		8			139		2,275			106		(8	)		2,520
Investment in subsidiaries		760			905		-			-		(1,665	)		-
Other assets		-			10		2			631		(631	)		12
Total assets	$	1,255		$	4,803	$	4,220		$	1,007	$	(6,150	)	$	5,135
Liabilities and equity
Current liabilities:
Accounts payable	$	-		$	9	$	262		$	66	$	-		$	337
Accrued and other current liabilities		41			119		112			15		(11	)		276
Intercompany payable		-			-		3,837			-		(3,837	)		-
Long-term debt-current portion		-			69		-			2		-			71
Total current liabilities		41			197		4,211			83		(3,848	)		684
Long-term debt		740			3,855		-			2		(722	)		3,875
Deferred tax liabilities		385			-		-			-		-			385
Other long-term liabilities		285			64		44			4		(10	)		387
Total long-term liabilities		1,410			3,919		44			6		(732	)		4,647
Total liabilities		1,451			4,116		4,255			89		(4,580	)		5,331

Redeemable shares		-			-		-			-					-
Other equity (deficit)		(196	)		687		(35	)		918		(1,570	)		(196	)
Total equity (deficit)		(196	)		687		(35	)		918		(1,570	)		(196	)
Total liabilities and equity (deficit)	$	1,255		$	4,803	$	4,220		$	1,007	$	(6,150	)	$	5,135

Condensed Supplemental Consolidated Balance Sheet As of fiscal year-end 2012


										Non-
							Guarantor			Guarantor
		Parent			Issuer		Subsidiaries			Subsidiaries		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	-		$	66	$	-		$	21	$	-		$	87
Accounts receivable, net of allowance		-			60		336			59		-			455
Intercompany receivable		243			3,800		74			-		(4,117	)		-
Inventories		-			83		414			38		-			535
Prepaid expenses and other current		120			17		9			21		(11	)		156
Total current assets		363			4,026		833			139		(4,128	)		1,233
Property, plant and equipment, net		-			113		1,023			80		-			1,216
Intangible assets, net		8			184		2,343			111		(10	)		2,636
Investment in subsidiaries		254			615		-			-		(869	)		-
Other assets		-			10		10			638		(637	)		21
Total assets	$	625		$	4,948	$	4,209		$	968	$	(5,644	)	$	5,106
Liabilities and equity
Current liabilities:
Accounts payable	$	-		$	84	$	195		$	27	$	-		$	306
Accrued and other current liabilities		18			159		120			16		(13	)		300
Intercompany payable		-			-		3,966			151		(4,117	)		-
Long-term debt-current portion		-			35		-			5		-			40
Total current liabilities		18			278		4,281			199		(4,130	)		646
Long-term debt		736			4,542		-			3		(850	)		4,431
Deferred tax liabilities		315			-		-			-		-			315
Other long-term liabilities		8			37		119			5		(3	)		166
Total long-term liabilities		1,059			4,579		119			8		(853	)		4,912
Total liabilities		1,077			4,857		4,400			207		(4,983	)		5,558

Redeemable shares		23			-		-			-					23
Other equity (deficit)		(475	)		91		(191	)		761		(661	)		(475	)
Total equity (deficit)		(452	)		91		(191	)		761		(661	)		(452	)
Total liabilities and equity (deficit)	$	625		$	4,948	$	4,209		$	968	$	(5,644	)	$	5,106

Condensed Supplemental Consolidated Statements of Cash Flows


	Fiscal 2013
											Non-
								Guarantor			Guarantor
		Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Cash Flow from Operating Activities	$	-		$	(16	)	$	417		$	63		$	-		$	464

Cash Flow from Investing Activities
Additions to property, plant, and equipment		-			(7	)		(218	)		(14	)		-			(239	)
Proceeds from disposal of assets		-			1			17			-			-			18
Investment in Parent		-			-			-			(21	)		21		-	-
(Contributions) distributions to/from subsidiaries		(462	)		441			-			-			21			-
Intercompany advances (repayments)		-			210			-			-			(210	)		-
Investment in Issuer debt securities		-			-			-			-			-			-
Acquisition of business net of cash acquired		-			-			(24	)		-			-			(24	)
Net cash from investing activities		(462	)		645			(225	)		(35	)		(168	)		(245	)
Cash Flow from Financing Activities
Proceeds from long-term debt		-			1,391			-			-			-			1,391
IPO proceeds		438			-			-			-			-			438
Payment of TRA		(5	)		(5	)		-			-			5			(5	)
Proceed from issuance of common stock		27			-			-			-			-			27
Repayment of note receivable		2			2			-			-			(2	)		2
Repayment of long-term debt		-			(1,955	)		-			(2	)		(21	)		(1,978	)
Changes in intercompany balances		-			-			(192	)		(15	)		207			-
Contribution from Parent		-			-			-			21			(21	)		-
Deferred financing costs		-			(39	)		-			-			-			(39	)
Net cash from financing activities		462			(606	)		(192	)		4			168			(164	)
Net change in cash and cash equivalents		-			50			-			5			-			55
Cash and cash equivalents at beginning of period		-			66			-			21			-			87
Cash and cash equivalents at end of period	$	-		$	116		$	-		$	26		$	-		$	142


	Fiscal 2012
											Non-
								Guarantor			Guarantor
		Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Cash Flow from Operating Activities	$	-		$	(22	)	$	504		$	(3	)	$	-		$	479

Cash Flow from Investing Activities
Additions to property, plant, and equipment		-			(9	)		(209	)		(12	)		-			(230	)
Proceeds from disposal of assets		-			-			30			-			-			30
Investment in Parent		-			-			-			(4	)		4		-	-
(Contributions) distributions to/from subsidiaries		16			(20	)		-			-			4			-
Intercompany advances (repayments)		-			258			-			-			(258	)		-
Investment in Issuer debt securities		-			-			-			-			-			-
Acquisition of business net of cash acquired		-			-			7			(62	)		-			(55	)
Net cash from investing activities		16			229			(172	)		(78	)		(250	)		(255	)
Cash Flow from Financing Activities
Proceeds from long-term debt		-			-			-			2			-			2
Equity contributions		-			(6	)		-			-			-			(6	)
Repayment of long-term debt		(16	)		(155	)		-			-			(4	)		(175	)
Changes in intercompany balances		-			-			(337	)		79			258			-
Contribution from Parent		-			-			-			4			(4	)		-
Deferred financing costs		-			-			-			-			-			-
Net cash from financing activities		(16	)		(161	)		(337	)		85			250			(179	)
Net change in cash and cash equivalents		-			46			(5	)		4			-			45
Cash and cash equivalents at beginning of period		-			20			5			17			-			42
Cash and cash equivalents at end of period	$	-		$	66		$	-		$	21		$	-		$	87


Fiscal 2011
											Non-
								Guarantor			Guarantor
		Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Cash Flow from Operating Activities	$	2		$	15		$	322		$	(11	)	$	(1	)	$	327

Cash Flow from Investing Activities
Additions to property, plant, and equipment		-			(16	)		(138	)		(6	)		-			(160	)
Proceeds from disposal of assets		-			-			5			-			-			5
Investment in Parent		-			-			-			-			-		-	-
(Contributions) distributions to/from subsidiaries		-			(39	)		-			-			39			-
Intercompany advances (repayments)		-			166			-			-			(166	)		-
Investment in Issuer debt securities		-			-			-			(39	)		39			-
Acquisition of business net of cash acquired		-			(368	)		-			-			-			(368	)
Net cash from investing activities		-			(257	)		(133	)		(45	)		(88	)		(523	)
Cash Flow from Financing Activities
Proceeds from long-term debt		-			995			-			-			-			995
Equity contributions		(2	)		(1	)		-			-			1			(2	)
Repayment of long-term debt		-			(841	)		-			-			(39	)		(880	)
Changes in intercompany balances		-			-			(186	)		20			166			-
Contribution from Parent		-			-			-			39			(39	)		-
Deferred financing costs		-			(23	)		-			-			-			(23	)
Net cash from financing activities		(2	)		130			(186	)		59			89			90
Net change in cash and cash equivalents		-			(112	)		3			3			-			(106	)
Cash and cash equivalents at beginning of period		-			132			2			14			-			148
Cash and cash equivalents at end of period	$	-		$	20		$	5		$	17		$	-		$	42