Guarantor And Non-Guarantor Financial Information

9 Months Ended

Jul. 02, 2016

Guarantor And Non-Guarantor Financial Information [Abstract]

Guarantor And Non-Guarantor Financial Information

15. Guarantor and Non-Guarantor Financial Information

Berry Plastics Corporation ("Issuer") has notes outstanding which are fully, jointly, severally, and unconditionally guaranteed by its parent, Berry Plastics Group, Inc. (for purposes of this Note 15, "Parent") and substantially all of Issuer's domestic subsidiaries. Separate narrative information or financial statements of the guarantor subsidiaries have not been included because they are 100% owned by Parent and the guarantor subsidiaries unconditionally guarantee such debt on a joint and several basis. A guarantee of a guarantor subsidiary 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 indentures, 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 of the guarantor subsidiaries 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. Parent also guarantees the Issuer's term loans and revolving credit facilities. The guarantor subsidiaries guarantee our term loans and are co-borrowers under our revolving credit facility. Presented below is condensed consolidating financial information for the Parent, Issuer, guarantor subsidiaries and non-guarantor subsidiaries. The Issuer and guarantor financial information includes all of our domestic operating subsidiaries; our non-guarantor subsidiaries include our foreign subsidiaries and the unrestricted subsidiaries under the Issuer's indentures. The Parent uses the equity method to account for its ownership in the Issuer in the Condensed Consolidating Supplemental Financial Statements. The Issuer 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 Balance Sheet

	July 2, 2016
								Non—
						Guarantor		Guarantor
		Parent		Issuer		Subsidiaries		Subsidiaries		Eliminations		Total
Current assets		—		97		1,055		614		—		1,766
Intercompany receivable		436		2,935		—		46		(3,417)		—
Property, plant, and equipment, net		—		78		1,474		724		—		2,276
Other assets		272		4,099		4,102		750		(5,460)		3,763
Total assets	$	708	$	7,209	$	6,631	$	2,134	$	(8,877)	$	7,805
Current liabilities		76		209		495		306		—		1,086
Intercompany payable		—		45		3,372		—		(3,417)		—
Other long-term liabilities		465		5,925		102		60		—		6,552
Redeemable non-controlling interest		12		—		—		12		(12)		12
Stockholders' equity (deficit)		155		1,030		2,662		1,756		(5,448)		155
Total liabilities and stockholders' equity
(deficit)	$	708	$	7,209	$	6,631	$	2,134	$	(8,877)	$	7,805

		September 26, 2015
								Non—
						Guarantor		Guarantor
		Parent		Issuer		Subsidiaries		Subsidiaries		Eliminations		Total
Current assets		162		257		767		197		—		1,383
Intercompany receivable		329		2,963		—		83		(3,375)		—
Property, plant and equipment, net		—		79		1,111		104		—		1,294
Other assets		75		1,553		2,152		102		(1,531)		2,351
Total assets	$	566	$	4,852	$	4,030	$	486	$	(4,906)	$	5,028
Current liabilities		57		205		366		77		—		705
Intercompany payable		—		—		3,375		—		(3,375)		—
Other long-term liabilities		562		3,769		39		6		—		4,376
Redeemable non-controlling interest		12		—		—		—		—		12
Stockholders' equity (deficit)		(65)		878		250		403		(1,531)		(65)
Total liabilities and stockholders' equity
(deficit)	$	566	$	4,852	$	4,030	$	486	$	(4,906)	$	5,028

Condensed Supplemental Consolidated Statements of Operations

	Quarterly Period Ended July 2, 2016
								Non-
						Guarantor		Guarantor
		Parent		Issuer		Subsidiaries		Subsidiaries		Eliminations		Total
Net sales	$	—	$	150	$	1,081	$	414	$	—	$	1,645
Cost of goods sold		—		140		834		322		—		1,296
Selling, general and administrative		—		6		93		30		—		129
Amortization of intangibles		—		2		27		6		—		35
Restructuring and impairment charges		—		—		1		5		—		6
Operating income		—		2		126		51		—		179
Debt extinguishment		—		4		—		—		—		4
Other expense (income), net		—		4		(4)		(18)		—		(18)
Interest expense, net		—		9		63		1		—		73
Equity in net income of subsidiaries		(120)		(119)		—		—		239		—
Income (loss) before income taxes		120		104		67		68		(239)		120
Income tax expense (benefit)		24		4		1		14		(19)		24
Consolidated net income (loss)	$	96	$	100	$	66	$	54	$	(220)	$	96
Comprehensive net income (loss)	$	96	$	98	$	65	$	38	$	(220)	$	77

	Quarterly Period Ended June 27, 2015
								Non-
						Guarantor		Guarantor
		Parent		Issuer		Subsidiaries		Subsidiaries		Eliminations		Total
Net sales	$	—	$	155	$	961	$	125	$	—	$	1,241
Cost of goods sold		—		121		773		109		—		1,003
Selling, general and administrative		—		17		63		12		—		92
Amortization of intangibles		—		2		18		2		—		22
Restructuring and impairment charges		—		—		3		—		—		3
Operating income		—		15		104		2		—		121
Debt extinguishment		—		94		—		—		—		94
Other expense (income), net		—		(2)		3		1		—		2
Interest expense, net		—		6		37		4		—		47
Equity in net income of subsidiaries		22		(60)		—		—		38		—
Income (loss) before income taxes		(22)		(23)		64		(3)		(38)		(22)
Income tax expense (benefit)		(9)		(10)		—		1		9		(9)
Consolidated net income (loss)	$	(13)	$	(13)	$	64	$	(4)	$	(47)	$	(13)
Comprehensive net income (loss)	$	(13)	$	(11)	$	64	$	(2)	$	(47)	$	(9)

		Three Quarterly Periods Ended July 2, 2016
								Non-
						Guarantor		Guarantor
		Parent		Issuer		Subsidiaries		Subsidiaries		Eliminations		Total
Net sales	$	—	$	442	$	3,143	$	1,286	$	—	$	4,871
Cost of goods sold		—		373		2,490		1,022		—		3,885
Selling, general and administrative		—		89		251		81		—		421
Amortization of intangibles		—		6		77		23		—		106
Restructuring and impairment charges		—		—		23		6		—		29
Operating income		—		(26)		302		154		—		430
Debt extinguishment		—		4		—		—		—		4
Other expense (income), net		—		15		(11)		(25)		—		(21)
Interest expense, net		—		27		158		37		—		222
Equity in net income of subsidiaries		(225)		(258)		—		—		483		—
Income (loss) before income taxes		225		186		155		142		(483)		225
Income tax expense (benefit)		66		23		2		36		(61)		66
Consolidated net income (loss)	$	159	$	163	$	153	$	106	$	(422)	$	159
Comprehensive net income (loss)	$	159	$	152	$	152	$	145	$	(422)	$	186

Consolidating Statement of Cash Flows
Cash Flow from Operating Activities	$	—	$	23	$	382	$	162	$	—	$	567
Cash Flow from Investing Activities
Additions to property, plant, and equipment		—		(13)		(181)		(34)		—		(228)
Proceeds from sale of assets		—		—		4		—		—		4
(Contributions) distributions to/from
subsidiaries		(20)		(2,240)		—		—		2,260		—
Intercompany advances (repayments)		—		11		—		—		(11)		—
Acquisition of business, net of cash acquired		—		—		(291)		(1,992)		—		(2,283)
Other investing activities, net		—		(11)		—		—		—		(11)
Net cash from investing activities		(20)		(2,253)		(468		(2,026)		2,249		(2,518)
Cash Flow from Financing Activities
Proceeds from long-term debt		—		2,490		—		—		—		2,490
Purchase of non-controlling interest		—		—		(66)		—		—		(66)
Proceeds from issuance of common stock		20		—		—		—		—		20
Payment of tax receivable agreement		(57)		—		—		—		—		(57)
Repayments on long-term borrowings		—		(356)		—		(34)		—		(390)
Contribution from Parent		—		—		291		1,969		(2,260)		—
Debt financing costs		—		(38)		—		—		—		(38)
Changes in intercompany balances		57		—		(110)		42		11		—
Net cash from financing activities		20		2,096		115		1,977		(2,249)		1,959
Effect of exchange rate changes on cash		—		—		—		—		—		—
Net change in cash		—		(134)		29		113		—		8
Cash and cash equivalents at beginning of
period		—		163		—		65		—		228
Cash and cash equivalents at end of period	$	—	$	29	$	29	$	178	$	—	$	236

	Three Quarterly Periods Ended June 27, 2015
								Non—
						Guarantor		Guarantor
		Parent		Issuer		Subsidiaries		Subsidiaries		Eliminations		Total
Net sales	$	—	$	464	$	2,871	$	350	$	—	$	3,685
Cost of goods sold		—		394		2,366		277		—		3,037
Selling, general and administrative		—		50		183		33		—		266
Amortization of intangibles		—		6		58		6		—		70
Restructuring and impairment charges		—		—		11		—		—		11
Operating income (loss)		—		14		253		34		—		301
Debt extinguishment		—		94		—		—		—		94
Other expense (income), net		—		(1)		2		1		—		2
Interest expense, net		—		19		119		14		—		152
Equity in net income of subsidiaries		(53)		(148)		—		—		201		—
Income (loss) before income taxes		53		50		132		19		(201)		53
Income tax expense (benefit)		15		12		—		3		(15)		15
Consolidated net income (loss)	$	38	$	38	$	132	$	16	$	(186)	$	38
Comprehensive net income (loss)	$	38	$	26	$	132	$	(16)	$	(186)	$	(6)

Consolidating Statement of Cash Flows
Cash Flow from Operating Activities	$	—	$	(35)	$	407	$	20	$	—	$	392
Cash Flow from Investing Activities
Additions to property, plant, and equipment		—		(11)		(110)		(3)		—		(124)
Proceeds from sale of assets		—		—		13		5		—		18
(Contributions) distributions to/from
subsidiaries		(16)		16		—		—		—		—
Intercompany advances (repayments)		—		282		—		—		(282)		—
Acquisition of business, net of cash acquired		—		—		—		—		—		—
Net cash from investing activities		(16)		287		(97)		2		(282	)	(106)
Cash Flow from Financing Activities
Proceeds from long-term debt		—		702		—		—		—		702
Proceeds from issuance of common stock		16		—		—		—		—		16
Payment of tax receivable agreement		(39)		—		—		—		—		(39)
Repayments on long-term borrowings		—		(937)		—		(3)		—		(940)
Debt financing costs		—		(87)		—		—		—		(87)
Changes in intercompany balances		39		—		(321)		—		282		—
Net cash from financing activities		16		(322)		(321)		(3)		282		(348)
Effect of exchange rate changes on cash		—		—		—		(5)		—		(5)
Net change in cash		—		(70)		(11)		14		—		(67)
Cash and cash equivalents at beginning of
period		—		70		15		44		—		129
Cash and cash equivalents at end of period	$	—	$	—	$	4	$	58	$	—	$	62