Condensed Consolidating Financial Statements

9 Months Ended

Sep. 25, 2012

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

Note 12 – Condensed Consolidating Financial Statements

NPC’s obligations under the Senior Notes and Senior Secured Credit Facilities are fully guaranteed by Holdings. As of the date hereof, Holdings’ only material asset is 100% of the stock of NPC. The remaining co-issuers with NPC, NPC Operating Company A, Inc. (“NPC Op Co A”) and NPC Operating Company B, Inc. (“NPC Op Co B”) do not have any assets, operations or cash flows and are 100% owned by NPC. The subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of September 25, 2012 and December 27, 2011, and for each of the 13-week and 39-week periods ended September 25, 2012 and September 27, 2011 (in thousands):

Condensed Consolidating Statements of Income

	Successor
	13 Weeks Ended September 25, 2012
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPC Op Co A		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	256,233		$	—	$	—	$	—		$	256,233
Total costs and expenses		—		243,565			—		—		—			243,565
Operating income		—		12,668			—		—		—			12,668
Interest expense		—		11,416			—		—		—			11,416
Equity in net income of subsidiary		2,378		—			—		—		(2,378	)		—
Income before income taxes		2,378		1,252			—		—		(2,378	)		1,252
Income tax benefit		—		(1,126	)		—		—		—			(1,126	)
Net income	$	2,378	$	2,378		$	—	$	—	$	(2,378	)	$	2,378

	Predecessor
	13 Weeks Ended September 27, 2011
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPC Op Co A		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	237,851		$	—	$	—	$	—		$	237,851
Total costs and expenses		—		228,731			—		—		—			228,731
Operating income		—		9,120			—		—		—			9,120
Interest expense		—		6,131			—		—		—			6,131
Equity in net income of subsidiary		3,469		—			—		—		(3,469	)		—
Income before income taxes		3,469		2,989			—		—		(3,469	)		2,989
Income tax benefit		—		(480	)		—		—		—			(480	)
Net income	$	3,469		3,469		$	—	$	—	$	(3,469	)		3,469

	Successor
	39 Weeks Ended September 25, 2012
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPC Op Co A		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	790,208	$	—	$	—	$	—		$	790,208
Total costs and expenses		—		731,942		—		—		—			731,942
Operating income		—		58,266		—		—		—			58,266
Interest expense		—		35,797		—		—		—			35,797
Loss on debt extinguishment		—		5,144						—			5,144
Equity in net income of subsidiary		14,372		—		—		—		(14,372	)		—
Income before income taxes		14,372		17,325		—		—		(14,372	)		17,325
Income tax expense		—		2,953		—		—		—			2,953
Net income	$	14,372	$	14,372	$	—	$	—	$	(14,372	)	$	14,372

	Predecessor
	39 Weeks Ended September 27, 2011
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPC Op Co A		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	727,602	$	—	$	—	$	—		$	727,602
Total costs and expenses		—		685,564		—		—		—			685,564
Operating income		—		42,038		—		—		—			42,038
Interest expense		—		19,075		—		—		—			19,075
Equity in net income of subsidiary		18,125		—		—		—		(18,125	)		—
Income before income taxes		18,125		22,963		—		—		(18,125	)		22,963
Income tax expense		—		4,838		—		—		—			4,838
Net income		18,125		18,125	$	—	$	—		(18,125	)		18,125

Condensed Consolidating Balance Sheet

	Successor
	September 25, 2012
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPC Op Co A		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	59,162	$	—	$	—	$	—		$	59,162
Facilities and equipment, net		—		142,672		—		—		—			142,672
Franchise rights, net		—		626,371		—		—		—			626,371
Goodwill		—		290,508		—		—		—			290,508
Investment in subsidiary		234,625		—		—		—		(234,625	)		—
Other assets, net		—		49,761		—		—		—			49,761
Total assets	$	234,625	$	1,168,474	$	—	$	—	$	(234,625	)	$	1,168,474
Liabilities and member’s equity:
Current liabilities, excluding debt	$	—	$	96,802	$	—	$	—	$	—		$	96,802
Current portion of long-term debt		—		3,750		—		—		—			3,750
Long-term debt		—		560,313		—		—		—			560,313
Other liabilities and deferred items		—		65,706		—		—		—			65,706
Deferred income taxes		—		207,278		—		—		—			207,278
Member’s equity		234,625		234,625		—		—		(234,625	)		234,625
Total liabilities and member’s equity	$	234,625	$	1,168,474	$	—	$	—	$	(234,625	)	$	1,168,474

	Predecessor
	December 27, 2011
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPC Op Co A		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	113,499	$	—	$	—	$	—		$	113,499
Facilities and equipment, net		—		131,744		—		—		—			131,744
Franchise rights, net		—		390,110		—		—		—			390,110
Goodwill		—		191,701		—		—		—			191,701
Investment in subsidiary		201,460		—		—		—		(201,460	)		—
Other assets, net		—		21,674		—		—		—			21,674
Total assets	$	201,460	$	848,728	$	—	$	—	$	(201,460	)	$	848,728
Liabilities and member’s equity:
Current liabilities, excluding debt	$	—	$	102,852	$	—	$	—	$	—		$	102,852
Current portion of long-term debt		—		13,540		—		—		—			13,540
Long-term debt		—		359,160		—		—		—			359,160
Other liabilities and deferred items		—		47,982		—		—		—			47,982
Member’s equity subject to redemption		3,250		—		—		—		—			3,250
Deferred income taxes		—		123,734		—		—		—			123,734
Member’s equity		198,210		201,460		—		—		(201,460	)		198,210
Total liabilities and member’s equity	$	201,460	$	848,728	$	—	$	—	$	(201,460	)	$	848,728

Condensed Consolidating Statements of Cash Flows

	Successor
	39 Weeks Ended September 25, 2012
	Parent			Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings			Issuer: NPC			Co-Issuer: NPC Op Co A		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Operating activities:
Net cash flows provided by operating activities	$	—		$	56,834		$	—	$	—	$	—		$	56,834
Investing activities:
Capital expenditures		—			(28,504	)		—		—		—			(28,504	)
Purchase of the stock of the Company		(216,635	)		(431,540	)		—		—		216,635			(431,540	)
Purchase of business assets, net of cash acquired		—			(19,371	)		—		—		—			(19,371	)
Proceeds from sale or disposition of assets		—			189			—		—		—			189
Net cash flows used in investing activities		(216,635	)		(479,226	)		—		—		216,635			(479,226	)
Financing activities:
Retirement of predecessor entity debt and other obligations		—			(372,700	)		—		—		—			(372,700	)
Proceeds from equity contributions, net		216,635			216,635			—		—		(216,635	)		216,635
Issuance of debt		—			565,000			—		—		—			565,000
Payments on term bank facilities		—			(937	)									(937	)
Debt issue costs		—			(32,012	)		—		—		—			(32,012	)
Proceeds from sale-leaseback transactions		—			1,006										1,006
Interest rate derivative		—			(636	)		—		—		—			(636	)
Net cash provided by financing activities		216,635			376,356			—		—		(216,635	)		376,356
Net change in cash and cash equivalents		—			(46,036	)		—		—		—			(46,036	)
Beginning cash and cash equivalents		—			78,394			—		—		—			78,394
Ending cash and cash equivalents	$	—		$	32,358		$	—	$	—	$	—		$	32,358

	Predecessor
	39 Weeks Ended September 27, 2011
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPC Op Co A		Co-Issuer: NPC Op Co B		Eliminations		Consolidated
Operating activities:
Net cash flows provided by operating activities	$	—	$	68,429		$	—	$	—	$	—	$	68,429
Investing activities:
Capital expenditures		—		(17,763	)		—		—		—		(17,763	)
Proceeds from sale or disposition of assets		—		647			—		—		—		647
Net cash flows used in investing activities		—		(17,116	)		—		—		—		(17,116	)
Financing activities:
Payments on term bank facilities		—		(29,670	)		—		—		—		(29,670	)
Proceeds from sale-leaseback transactions		—		486			—		—		—		486
Net cash flows used in financing activities		—		(29,184	)		—		—		—		(29,184	)
Net change in cash and cash equivalents		—		22,129			—		—		—		22,129
Beginning cash and cash equivalents		—		44,159			—		—		—		44,159
Ending cash and cash equivalents	$	—	$	66,288		$	—	$	—	$	—	$	66,288