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Guarantor And Non-Guarantor Financial Information

12 Months Ended

Sep. 26, 2015

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 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 2015
	Parent			Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Net sales		$	—		$	622		$	3,807		$	452		$	—		$	4,881
Cost of goods sold			—			526			3,128			358			—			4,012
Selling, general and administrative			—			64			244			49			—			357
Amortization of intangibles			—			8			75			8			—			91
Restructuring and impairment charges			—			—			13			—			—			13
Operating income			—			24			347			37			—			408
Debt extinguishment			—			94			—			—			—			94
Other expense (income), net			(3)			—			3			1			—			1
Interest expense, net			—			25			148			18			—			191
Equity in net income of subsidiaries			(119)			(210)			—			—			329			—
Income (loss) before income taxes			122			115			196			18			(329)			122
Income tax expense (benefit)			36			25			—			4			(29)			36
Consolidated net income (loss)			86			90			196			14			(300)			86
Net income (loss) attributable to non-controlling interests			—			—			—			—			—			—
Net income (loss) attributable to the Company		$	86		$	90		$	196		$	14		$	(300)		$	86
Currency translation			—			—			—			(45)			—			(45)
Interest rate hedges			—			(33)			—			—			—			(33)
Defined benefit pension and retiree benefit plans			—			(16)			—			—			—			(16)
Provision for income taxes related to other comprehensive income items			—			18			—			—			—			18
Comprehensive income (loss)		$	86		$	59		$	196		$	(31)		$	(300)		$	10

	Fiscal 2014
	Parent			Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Net sales	$	-		$	638		$	3,904		$	416		$	-		$	4,958
Cost of goods sold		-			557			3,284			349			-			4,190
Selling, general and administrative		-			52			232			36			-			320
Amortization of intangibles		-			10			84			8			-			102
Restructuring and impairment charges		-			-			30			-			-			30
Operating income		-			19			274			23			-			316
Debt extinguishment		-			35			-			-			-			35
Other income, net		(3	)		-			(4	)		-			-			(7	)
Interest expense, net		34			27			176			(97	)		81			221
Equity in net income of subsidiaries		(98	)		(218	)		-			-			316			-
Income (loss) before income taxes		67			175			102			120			(397	)		67
Income tax expense (benefit)		4			44			-			5			(49	)		4
Consolidated net income (loss)		63			131			102			115			(348	)		63
Net income (loss) attributable to non-controlling interests		1			-			-			-			-			1
Net income (loss) attributable to the Company	$	62		$	131		$	102		$	115		$	(348	)	$	62
Currency translation		-			-			-			(16	)		-			(16	)
Interest rate hedges		-			(3	)		-			-			-			(3	)
Defined benefit pension and retiree benefit plans		-			(11	)		-			-			-			(11	)
Provision for income taxes related to other comprehensive income items		-			5			-			-			-			5
Comprehensive income (loss)	$	62		$	122		$	102		$	99		$	(348	)	$	37

	Fiscal 2013
	Parent			Issuer			Guarantor Subsidiaries		Non- Guarantor 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 (loss)		-			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

Condensed Supplemental Consolidated Balance Sheet
As of fiscal year end 2015

	Parent			Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	-		$	163	$	-	$	65	$	-		$	228
Accounts receivable, net		-			23		337		74		-			434
Intercompany receivable		329			2,963		-		83		(3,375	)		-
Inventories		-			49		425		48		-			522
Deferred income taxes		162			-		-		-		-			162
Prepaid expenses and other current		-			22		5		10		-			37
Total current assets		491			3,220		767		280		(3,375	)		1,383
Property, plant and equipment, net		-			79		1,111		104		-			1,294
Intangible assets, net		-			97		2,151		101		-			2,349
Investment in subsidiaries		75			1,456		-		-		(1,531	)		-
Other assets		-			-		1		1		-			2
Total assets	$	566		$	4,852	$	4,030	$	486	$	(4,906	)	$	5,028
Liabilities and equity
Current liabilities:
Accounts payable	$	-		$	28	$	245	$	57	$	-		$	330
Accrued expenses and other current liabilities		57			140		121		20		-			338
Intercompany payable		-			-		3,375		-		(3,375	)		-
Current portion of long-term debt		-			37		-		-		-			37
Total current liabilities		57			205		3,741		77		(3,375	)		705
Long-term debt, less current portion		-			3,647		-		1		-			3,648
Deferred income taxes		387			-		-		-		-			387
Other long-term liabilities		175			122		39		5		-			341
Total long-term liabilities		562			3,769		39		6		-			4,376
Total liabilities		619			3,974		3,780		83		(3,375	)		5,081

Redeemable non-controlling interests		12			-		-		-		-			12
Other equity (deficit)		(65	)		878		250		403		(1,531	)		(65	)
Total equity (deficit)		(65	)		878		250		403		(1,531	)		(65	)
Total liabilities and equity (deficit)	$	566		$	4,852	$	4,030	$	486	$	(4,906	)	$	5,028

Condensed Supplemental Consolidated Balance Sheet
As of fiscal year end 2014

	Parent			Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	-		$	70	$	15	$	44	$	-		$	129
Accounts receivable, net of allowance		-			35		377		79		-			491
Intercompany receivable		319			3,343		-		87		(3,749	)		-
Inventories		-			51		496		57		-			604
Deferred income taxes		166			-		-		-		-			166
Prepaid expenses and other current		-			15		13		14		-			42
Total current assets		485			3,514		901		281		(3,749	)		1,432
Property, plant and equipment, net		-			84		1,162		118		-			1,364
Intangible assets, net		-			104		2,226		125		-			2,455
Investment in subsidiaries		69			1,237		-		-		(1,306	)		-
Other assets		-			-		1		-		-			1
Total assets	$	554		$	4,939	$	4,290	$	524	$	(5,055	)	$	5,252
Liabilities and equity
Current liabilities:
Accounts payable	$	-		$	31	$	303	$	61	$	-		$	395
Accrued and other current liabilities		35			127		132		20		-			314
Intercompany payable		-			-		3,749		-		(3,749	)		-
Long-term debt-current portion		-			54		-		4		-			58
Total current liabilities		35			212		4,184		85		(3,749	)		767
Long-term debt, less current portion		-			3,842		-		2		-			3,844
Deferred tax liabilities		386			-		-		-		-			386
Other long-term liabilities		234			76		42		4		-			356
Total long-term liabilities		620			3,918		42		6		-			4,586
Total liabilities		655			4,130		4,226		91		(3,749	)		5,353

Redeemable non-controlling interests		13			-		-		-		-			13
Other equity (deficit)		(114	)		809		64		433		(1,306	)		(114	)
Total equity (deficit)		(114	)		809		64		433		(1,306	)		(114	)
Total liabilities and equity (deficit)	$	554		$	4,939	$	4,290	$	524	$	(5,055	)	$	5,252

Condensed Supplemental Consolidated Statements of Cash Flows

	Fiscal 2015
	Parent			Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Cash Flow from Operating Activities	$	-		$	60		$	542		$	34		$	1		$	637

Cash Flow from Investing Activities
Additions to property, plant, and equipment		-			(13	)		(164	)		(3	)		-			(180	)
Proceeds from sale of assets		-			-			18			-			-			18
Investment in Parent		-			-			-			-			-			-
(Contributions) distributions to/from subsidiaries		(18	)		18			-			-			-			-
Intercompany advances (repayments)		-			368			-			-			(368	)		-
Acquisition of business, net of cash acquired		-			-			(3	)		-			-			(3	)
Net cash from investing activities		(18	)		373			(149	)		(3	)		(368	)		(165	)
Cash Flow from Financing Activities
Proceeds from long-term borrowings		-			693			-			-			-			693
Payment of tax receivable agreement		(39	)		-			-			-			-			(39	)
Proceed from issuance of common stock		18			-			-			-			-			18
Repayment of note receivable		-			-			-			-			-			-
Repayment of long-term borrowings		-			(947	)		-			(4	)		-			(951	)
Changes in intercompany balances		39			-			(408	)		2			367			-
Contribution from Parent		-			-			-			-			-			-
Debt financing costs		-			(86	)		-			-			-			(86	)
Net cash from financing activities		18			(340	)		(408	)		(2	)		367			(365	)
Effect of currency translation on cash		-			-			-			(8	)		-			(8	)
Net change in cash and cash equivalents		-			93			(15	)		21			-			99
Cash and cash equivalents at beginning of period		-			70			15			44			-			129
Cash and cash equivalents at end of period	$	-		$	163		$	-		$	65		$	-		$	228

	Fiscal 2014
	Parent			Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Cash Flow from Operating Activities	$	-		$	27		$	473		$	30		$	-		$	530

Cash Flow from Investing Activities
Additions to property, plant, and equipment		-			(6	)		(200	)		(9	)		-			(215	)
Proceeds from sale of assets		-			-			19			-			-			19
Investment in Parent		-			-			-			-			-			-
(Contributions) distributions to/from subsidiaries		723			(2	)		-			721			(1,442	)		-
Intercompany advances (repayments)		-			20			-			-			(20	)		-
Investment in Issuer debt securities		-			-			-			-			-			-
Acquisition of business, net of cash acquired		-			-			(136	)		(90	)		-			(226	)
Net cash from investing activities		723			12			(317	)		622			(1,462	)		(422	)
Cash Flow from Financing Activities
Proceeds from long-term borrowings		-			1,627			-			-			-			1,627
Proceeds from initial public offering		-			-			-			-			-			-
Payment of tax receivable agreement		(32	)		-			-			-			-			(32	)
Proceed from issuance of common stock		17			-			-			-			-			17
Repayment of note receivable		-			-			-			-			-			-
Repayment of long-term borrowings		(740	)		(1,668	)		-			-			721			(1,687	)
Changes in intercompany balances		32			-			(141	)		89			20			-
Contribution from Parent		-			-			-			(721	)		721			-
Debt financing costs		-			(44	)		-			-			-			(44	)
Net cash from financing activities		(723	)		(85	)		(141	)		(632	)		1,462			(119	)
Effect of currency translation on cash		-			-			-			(2	)		-			(2	)
Net change in cash and cash equivalents		-			(46	)		15			18			-			(13	)
Cash and cash equivalents at beginning of period		-			116			-			26			-			142
Cash and cash equivalents at end of period	$	-		$	70		$	15		$	44		$	-		$	129

	Fiscal 2013
	Parent			Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Cash Flow from Operating Activities	$	-		$	11		$	417		$	36		$	-		$	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