Condensed Consolidating Financial Statements

3 Months Ended

Jun. 30, 2011

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

Note 13. Condensed Consolidating Financial Statements

The 10.5% Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis by certain of the Company’s 100% owned domestic subsidiaries (“Guarantor Subsidiaries”) and secured by a first priority lien on 51% of the capital stock of certain of our foreign restricted subsidiaries (“Non-Guarantor Subsidiaries”).  The Company’s Guarantor Subsidiaries and Non-Guarantor Subsidiaries are not consistent with the Company’s business groups or geographic operations; accordingly this basis of presentation is not intended to present the Company’s financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting. We are required to present condensed consolidating financial information in order for the subsidiary guarantors of the Company’s public debt to be exempt from reporting under the Securities Exchange Act of 1934, as amended.

Condensed consolidating financial statements for the Company’s Guarantor Subsidiaries and Non-Guarantor Subsidiaries are presented in the following tables (amounts in thousands):

Condensed Consolidating Balance Sheet

June 30, 2011

(Unaudited)

	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	6,531		$	92,070	$	35,397		$	—		$	133,998
Accounts receivable, net	(4		)	58,750		86,446			—			145,192
Intercompany receivable	175,049			120,883		179,149			(475,081		)	—
Inventories, net	—			125,574		115,430			(535		)	240,469
Prepaid expenses and other	208			14,501		17,873			—			32,582
Deferred income taxes	(339		)	1,193		3,651			—			4,505
Total current assets	181,445			412,971		437,946			(475,616		)	556,746
Property and equipment, net	47			92,060		224,431			—			316,538
Investments in subsidiaries	388,958			345,416		(5,686		)	(728,688		)	—
Intangible assets, net	—			11,222		11,383			—			22,605
Other assets	5,977			1,649		1,041			—			8,667
Long-term intercompany receivable	85,689			104,097		—			(189,786		)	—
Total assets	$	662,116		$	967,415	$	669,115		$	(1,394,090	)	$	904,556
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	36,673		$	—	$	1,722		$	—		$	38,395
Accounts payable, trade	40			38,119		56,711			—			94,870
Intercompany payable	630			342,764		132,222			(475,616		)	—
Accrued expenses	4,550			25,231		48,597			—			78,378
Income taxes payable	(2,672		)	2,792		4,279			—			4,399
Total current liabilities	39,221			408,906		243,531			(475,616		)	216,042
Long-term debt, less current portion	227,276			—		2,426			—			229,702
Other non-current obligations	—			6,003		49,355			—			55,358
Deferred income taxes	(339		)	2,015		5,820			—			7,496
Long-term intercompany payable	—			85,689		104,097			(189,786		)	—
Stockholders’ equity	395,958			464,802		263,886			(728,688		)	395,958
Total liabilities and stockholders’ equity	$	662,116		$	967,415	$	669,115		$	(1,394,090	)	$	904,556

Condensed Consolidating Balance Sheet

March 31, 2011

	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	6,417		$	119,326	$	26,308		$	—		$	152,051
Accounts receivable, net	—			65,257		95,451			—			160,708
Intercompany receivable	190,973			176,233		197,329			(564,535		)	—
Inventories, net	—			113,908		92,830			(298		)	206,440
Prepaid expenses and other	302			10,418		7,300			—			18,020
Deferred income taxes	(596		)	1,373		4,524			—			5,301
Total current assets	197,096			486,515		423,742			(564,833		)	542,520
Property and equipment, net	122			82,962		227,328			—			310,412
Investments in subsidiaries	347,997			333,801		(5,686		)	(676,112		)	—
Intangible assets, net	—			8,666		11,426			—			20,092
Other assets	6,160			4,095		1,030			—			11,285
Long-term intercompany receivable	84,231			102,324		—			(186,555		)	—
Total assets	$	635,606		$	1,018,363	$	657,840		$	(1,427,500	)	$	884,309
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	39,012		$	—	$	3,089		$	—		$	42,101
Accounts payable, trade	40			32,762		58,195			—			90,997
Intercompany payable	732			419,043		145,058			(564,833		)	—
Accrued expenses	10,837			31,330		46,124			—			88,291
Income taxes payable	(1,380		)	1,434		4,211			—			4,265
Total current liabilities	49,241			484,569		256,677			(564,833		)	225,654
Long-term debt, less current portion	227,208			—		4,007			—			231,215
Other non-current obligations	—			7,989		51,738			—			59,727
Deferred income taxes	(596		)	2,169		6,387			—			7,960
Long-term intercompany payable	—			84,231		102,324			(186,555		)	—
Stockholders’ equity	359,753			439,405		236,707			(676,112		)	359,753
Total liabilities and stockholders’ equity	$	635,606		$	1,018,363	$	657,840		$	(1,427,500	)	$	884,309

Condensed Consolidating Statement of Operations

For the Quarter Ended June 30, 2011

(Unaudited)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	269,687		$	280,022		$	(259,853	)	$	289,856
Operating costs and expenses:
Cost of sales	162			226,408			234,568			(250,634		)	210,504
Selling, general and administrative expenses	11,449			15,715			12,094			(8,982		)	30,276
Research and development	—			5,027			2,059			—			7,086
Restructuring charges	—			481			544			—			1,025
Net (gain) loss on sales and disposals of assets	3			19			101			—			123
Total operating costs and expenses	11,614			247,650			249,366			(259,616		)	249,014
Operating income (loss)	(11,614		)	22,037			30,656			(237		)	40,842
Interest income	(4		)	(17		)	(22		)	—			(43		)
Interest expense	7,103			74			223			—			7,400
Other (income) expense, net	(11,544		)	7,987			3,393			69			(95		)
Equity in earnings of subsidiaries	(38,080		)	—			—			38,080			—
Income before income taxes	30,911			13,993			27,062			(38,386		)	33,580
Income tax expense	(938		)	603			2,066			—			1,731
Net income	$	31,849		$	13,390		$	24,996		$	(38,386	)	$	31,849

Condensed Consolidating Statement of Operations

For the Quarter Ended June 30, 2010

(Unaudited)

	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	229,189	$	248,179		$	(233,574	)	$	243,794
Operating costs and expenses:
Cost of sales	—			181,304		224,808			(223,226		)	182,886
Selling, general and administrative expenses	8,689			13,268		12,409			(10,151		)	24,215
Research and development	—			4,322		1,709			—			6,031
Restructuring charges	—			1,532		260			—			1,792
Net (gain) loss on sales and disposals of assets	—			24		311			—			335
Total operating costs and expenses	8,689			200,450		239,497			(233,377		)	215,259
Operating income (loss)	(8,689		)	28,739		8,682			(197		)	28,535
Other (income) expense, net	42,683			9,203		(4,298		)	(229		)	47,359
Equity in earnings of subsidiaries	(31,273		)	—		—			31,273			—
Income before income taxes	(20,099		)	19,536		12,980			(31,241		)	(18,824		)
Income tax expense	—			67		1,176			32			1,275
Net income (loss)	$	(20,099	)	$	19,469	$	11,804		$	(31,273	)	$	(20,099	)

Condensed Consolidating Statement of Cash Flows

For the Quarter Ended June 30, 2011

(Unaudited)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	3,114		$	(11,943	)	$	14,157		$	—	$	5,328
Investing activities:
Capital expenditures	(1		)	(3,700		)	(2,037		)	—		(5,738		)
Acquisition, net of cash received	—			(11,584		)	—			—		(11,584		)
Net cash used in investing activities	(1		)	(15,284		)	(2,037		)	—		(17,322		)
Financing activities:
Payments of long-term debt	(3,015		)	—			—			—		(3,015		)
Net payments under other credit facilities	—			—			(3,081		)	—		(3,081		)
Debt issuance costs	—			(29		)	—			—		(29		)
Proceeds from exercise of stock options	16			—			—			—		16
Net cash used in financing activities	(2,999		)	(29		)	(3,081		)	—		(6,109		)
Net increase (decrease) in cash and cash equivalents	114			(27,256		)	9,039			—		(18,103		)
Effect of foreign currency fluctuations on cash	—			—			50			—		50
Cash and cash equivalents at beginning of fiscal period	6,417			119,326			26,308			—		152,051
Cash and cash equivalents at end of fiscal period	$	6,531		$	92,070		$	35,397		$	—	$	133,998

Condensed Consolidating Statement of Cash Flows

For the Quarter Ended June 30, 2010

(Unaudited)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	(14,885	)	$	7,481		$	11,342		$	—	$	3,938
Investing activities:
Capital expenditures	—			(2,363		)	(4,494		)	—		(6,857		)
Net cash used in investing activities	—			(2,363		)	(4,494		)	—		(6,857		)
Financing activities:
Proceeds from issuance of debt	226,975			—			—			—		226,975
Payments of long-term debt	(210,604		)	(15,000		)	(2,940		)	—		(228,544		)
Net payments under other credit facilities	—			—			(1,688		)	—		(1,688		)
Debt issuance costs	(6,593		)	—			—			—		(6,593		)
Debt extinguishment costs	(207		)	—			—			—		(207		)
Net cash provided by (used in) financing activities	9,571			(15,000		)	(4,628		)	—		(10,057		)
Net increase in cash and cash equivalents	(5,314		)	(9,882		)	2,220			—		(12,976		)
Effect of foreign currency fluctuations on cash	—			—			(255		)	—		(255		)
Cash and cash equivalents at beginning of fiscal period	11,602			54,707			12,890			—		79,199
Cash and cash equivalents at end of fiscal period	$	6,288		$	44,825		$	14,855		$	—	$	65,968