Financial Guarantees and Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 29, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of March 29, 2014

In thousands	PGI (Issuer)			Guarantors		Non-Guarantors			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	764		$	10,342	$	48,534		$	—		$	59,640
Accounts receivable, net	—			46,349		166,952			—			213,301
Inventories, net	(199		)	46,210		106,271			—			152,282
Deferred income taxes	385			2,438		3,023			(2,823		)	3,023
Other current assets	15,620			14,499		46,508			—			76,627
Total current assets	16,570			119,838		371,288			(2,823		)	504,873
Property, plant and equipment, net	3,068			175,713		432,235			—			611,016
Goodwill	—			43,161		77,144			—			120,305
Intangible assets, net	30,270			110,619		23,516			—			164,405
Net investment in and advances to (from) subsidiaries	975,032			623,322		(356,982		)	(1,241,372		)	—
Deferred income taxes	—			—		2,499			—			2,499
Other noncurrent assets	295			8,199		18,445			—			26,939
Total assets	$	1,025,235		$	1,080,852	$	568,145		$	(1,244,195	)	$	1,430,037
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	956		$	—	$	7,191		$	—		$	8,147
Accounts payable and accrued liabilities	28,869			63,660		209,565			—			302,094
Income taxes payable	500			—		3,071			—			3,571
Deferred income taxes	—			—		48			1,147			1,195
Current portion of long-term debt	3,015			—		9,318			—			12,333
Total current liabilities	33,340			63,660		229,193			1,147			327,340
Long-term debt	850,822			—		27,834			—			878,656
Deferred income taxes	971			8,054		18,575			(3,968		)	23,632
Other noncurrent liabilities	355			30,810		28,644			—			59,809
Total liabilities	885,488			102,524		304,246			(2,821		)	1,289,437
Common stock	—			—		16,966			(16,966		)	—
Polymer Group, Inc. shareholders’ equity	139,747			978,328		246,080			(1,224,408		)	139,747
Noncontrolling interests	—			—		853			—			853
Total equity	139,747			978,328		263,899			(1,241,374		)	140,600
Total liabilities and equity	$	1,025,235		$	1,080,852	$	568,145		$	(1,244,195	)	$	1,430,037

Condensed Consolidating Balance Sheet

As of December 28, 2013

In thousands	PGI (Issuer)		Guarantors		Non-Guarantors			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	2,068	$	13,103	$	70,893		$	—		$	86,064
Accounts receivable, net	—		46,828		147,999			—			194,827
Inventories, net	—		46,595		109,770			—			156,365
Deferred income taxes	385		2,438		2,318			(2,823		)	2,318
Other current assets	1,887		12,696		44,513			—			59,096
Total current assets	4,340		121,660		375,493			(2,823		)	498,670
Property, plant and equipment, net	2,756		176,380		444,143			—			623,279
Goodwill	—		43,182		76,961			—			120,143
Intangible assets, net	31,525		112,026		24,628			—			168,179
Net investment in and advances to (from) subsidiaries	1,000,551		615,314		(363,414		)	(1,252,451		)	—
Deferred income taxes	—		—		2,582			—			2,582
Other noncurrent assets	298		8,869		16,885			—			26,052
Total assets	$	1,039,470	$	1,077,431	$	577,278		$	(1,255,274	)	$	1,438,905
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	410	$	—	$	2,062		$	—		$	2,472
Accounts payable and accrued liabilities	36,510		61,950		209,201			—			307,661
Income taxes payable	369		—		3,244			—			3,613
Deferred income taxes	—		—		375			1,148			1,523
Current portion of long-term debt	3,039		—		10,758			—			13,797
Total current liabilities	40,328		61,950		225,640			1,148			329,066
Long-term debt	850,767		—		29,632			—			880,399
Deferred income taxes	974		8,053		16,104			(3,970		)	21,161
Other noncurrent liabilities	1,810		31,372		28,663			—			61,845
Total liabilities	893,879		101,375		300,039			(2,822		)	1,292,471
Common stock	—		—		16,966			(16,966		)	—
Polymer Group, Inc. shareholders’ equity	145,591		976,056		259,430			(1,235,486		)	145,591
Noncontrolling interests	—		—		843			—			843
Total equity	145,591		976,056		277,239			(1,252,452		)	146,434
Total liabilities and equity	$	1,039,470	$	1,077,431	$	577,278		$	(1,255,274	)	$	1,438,905

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended March 29, 2014

In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	—		$	148,896		$	286,667		$	(12,979	)	$	422,584
Cost of goods sold	(37		)	(122,419		)	(238,471		)	12,979			(347,948		)
Gross profit	(37		)	26,477			48,196			—			74,636
Selling, general and administrative expenses	(10,930		)	(14,036		)	(31,053		)	—			(56,019		)
Special charges, net	(3,965		)	(532		)	(4,214		)	—			(8,711		)
Other operating, net	12			(212		)	(869		)	—			(1,069		)
Operating income (loss)	(14,920		)	11,697			12,060			—			8,837
Other income (expense):
Interest expense	(19,931		)	7,083			(5,058		)	—			(17,906		)
Intercompany royalty and technical service fees	2,695			1,653			(4,348		)	—			—
Foreign currency and other, net	10,800			553			(6,394		)	—			4,959
Equity in earnings of subsidiaries	7,971			(8,165		)	—			194			—
Income (loss) before income taxes	(13,385		)	12,821			(3,740		)	194			(4,110		)
Income tax (provision) benefit	3,591			(4,914		)	(4,377		)	—			(5,700		)
Net income (loss)	(9,794		)	7,907			(8,117		)	194			(9,810		)
Less: Earnings attributable to noncontrolling interests	—			—			(16		)	—			(16		)
Net income (loss) attributable to Polymer Group, Inc.	$	(9,794	)	$	7,907		$	(8,101	)	$	194		$	(9,794	)
Comprehensive income (loss) attributable to Polymer Group, Inc.	$	(8,107	)	$	9,405		$	(6,057	)	$	(3,348	)	$	(8,107	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended March 30, 2013

In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	—		$	93,012		$	199,529		$	(5,459	)	$	287,082
Cost of goods sold	(25		)	(81,846		)	(164,804		)	5,459			(241,216		)
Gross profit	(25		)	11,166			34,725			—			45,866
Selling, general and administrative expenses	(9,644		)	(5,760		)	(18,938		)	—			(34,342		)
Special charges, net	(1,354		)	(37		)	(413		)	—			(1,804		)
Other operating, net	2			(76		)	(266		)	—			(340		)
Operating income (loss)	(11,021		)	5,293			15,108			—			9,380
Other income (expense):
Interest expense	(10,228		)	3,101			(4,957		)	—			(12,084		)
Intercompany royalty and technical service fees	1,327			1,607			(2,934		)	—			—
Foreign currency and other, net	(2		)	(97		)	(1,321		)	—			(1,420		)
Equity in earnings of subsidiaries	11,524			3,817			—			(15,341		)	—
Income (loss) before income taxes	(8,400		)	13,721			5,896			(15,341		)	(4,124		)
Income tax (provision) benefit	2,173			(2,145		)	(2,131		)	—			(2,103		)
Net income (loss)	$	(6,227	)	$	11,576		$	3,765		$	(15,341	)	$	(6,227	)
Comprehensive income (loss) attributable to Polymer Group, Inc.	$	(9,903	)	$	16,102		$	5,384		$	(21,486	)	$	(9,903	)

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 29, 2014

In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(35,352	)	$	30,624		$	(9,861	)	$	—		$	(14,589	)
Investing activities:
Purchases of property, plant and equipment	(746		)	(5,795		)	(7,574		)	—			(14,115		)
Acquisition of intangibles and other	(57		)	—			—			—			(57		)
Intercompany investing activities, net	11,035			(16,505		)	50			5,420			—
Net cash provided by (used in) investing activities	10,232			(22,300		)	(7,524		)	5,420			(14,172		)
Financing activities:
Proceeds from long-term borrowings	3,000			—			152			—			3,152
Proceeds from short-term borrowings	1,024			—			6,582			—			7,606
Repayment of long-term borrowings	(3,898		)	—			(2,062		)	—			(5,960		)
Repayment of short-term borrowings	(478		)	—			(1,471		)	—			(1,949		)
Intercompany financing activities, net	24,168			(11,085		)	(7,663		)	(5,420		)	—
Net cash provided by (used in) financing activities	23,816			(11,085		)	(4,462		)	(5,420		)	2,849
Effect of exchange rate changes on cash	—			—			(512		)	—			(512		)
Net change in cash and cash equivalents	(1,304		)	(2,761		)	(22,359		)	—			(26,424		)
Cash and cash equivalents at beginning of period	2,068			13,103			70,893			—			86,064
Cash and cash equivalents at end of period	$	764		$	10,342		$	48,534		$	—		$	59,640

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 30, 2013

In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(15,118	)	$	16,397		$	(15,990	)	$	—		$	(14,711	)
Investing activities:
Purchases of property, plant and equipment	(10,592		)	(682		)	(3,043		)	—			(14,317		)
Proceeds from the sale of assets	—			—			11			—			11
Acquisition of intangibles and other	(53		)	—			—			—			(53		)
Intercompany investing activities, net	5,766			(23,000		)	—			17,234			—
Net cash provided by (used in) investing activities	(4,879		)	(23,682		)	(3,032		)	17,234			(14,359		)
Financing activities:
Proceeds from long-term borrowings	—			—			6,666			—			6,666
Proceeds from short-term borrowings	1,446			—			—			—			1,446
Repayment of long-term borrowings	(27		)	—			(885		)	—			(912		)
Repayment of short-term borrowings	(848		)	—			—			—			(848		)
Intercompany financing activities, net	23,000			(5,766		)	—			(17,234		)	—
Net cash provided by (used in) financing activities	23,571			(5,766		)	5,781			(17,234		)	6,352
Effect of exchange rate changes on cash	—			—			(534		)	—			(534		)
Net change in cash and cash equivalents	3,574			(13,051		)	(13,775		)	—			(23,252		)
Cash and cash equivalents at beginning of period	486			28,285			69,108			—			97,879
Cash and cash equivalents at end of period	$	4,060		$	15,234		$	55,333		$	—		$	74,627