Financial Guarantees and Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 27, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

As of September 27, 2014



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	4,026		$	112,897		$	65,760		$	—		$	182,683
Accounts receivable, net	—			43,990			218,084			—			262,074
Inventories, net	(837		)	50,697			132,345			—			182,205
Deferred income taxes	385			2,438			9,672			(2,823		)	9,672
Other current assets	10,120			10,838			67,991			—			88,949
Total current assets	13,694			220,860			493,852			(2,823		)	725,583
Property, plant and equipment, net	4,237			205,007			780,145			—			989,389
Goodwill	—			55,999			145,988			—			201,987
Intangible assets, net	36,489			120,011			15,253			—			171,753
Net investment in and advances to (from) subsidiaries	1,452,933			473,936			(754,385		)	(1,172,484		)	—
Deferred income taxes	—			—			3,621			—			3,621
Other noncurrent assets	289			9,383			25,611			—			35,283
Total assets	$	1,507,642		$	1,085,196		$	710,085		$	(1,175,307	)	$	2,127,616
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	119		$	—		$	15,683		$	—		$	15,802
Accounts payable and accrued liabilities	35,619			58,817			216,904			—			311,340
Income taxes payable	239			769			(537		)	—			471
Deferred income taxes	—			(148		)	8			1,148			1,008
Current portion of long-term debt	7,142			—			28,305			—			35,447
Total current liabilities	43,119			59,438			260,363			1,148			364,068
Long-term debt	1,413,551			—			26,579			—			1,440,130
Deferred income taxes	974			9,626			70,397			(3,971		)	77,026
Other noncurrent liabilities	494			26,994			79,561			—			107,049
Total liabilities	1,458,138			96,058			436,900			(2,823		)	1,988,273
Common stock	—			—			16,966			(16,966		)	—
Polymer Group, Inc. shareholders’ equity	49,504			989,138			166,380			(1,155,518		)	49,504
Noncontrolling interests	—			—			89,839			—			89,839
Total equity	49,504			989,138			273,185			(1,172,484		)	139,343
Total liabilities and equity	$	1,507,642		$	1,085,196		$	710,085		$	(1,175,307	)	$	2,127,616

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	—		46,428		109,646			—			156,074
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		121,493		375,369			(2,823		)	498,379
Property, plant and equipment, net	2,756		207,256		442,768			—			652,780
Goodwill	—		54,683		60,645			—			115,328
Intangible assets, net	31,525		125,146		12,728			—			169,399
Net investment in and advances to (from) subsidiaries	1,013,856		615,314		(363,414		)	(1,265,756		)	—
Deferred income taxes	—		—		2,582			—			2,582
Other noncurrent assets	298		8,869		16,885			—			26,052
Total assets	$	1,052,775	$	1,132,761	$	547,563		$	(1,268,579	)	$	1,464,520
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	410	$	—	$	2,062		$	—		$	2,472
Accounts payable and accrued liabilities	36,510		61,950		209,271			—			307,731
Income taxes payable	369		—		3,244			—			3,613
Deferred income taxes	—		—		194			1,148			1,342
Current portion of long-term debt	3,039		—		10,758			—			13,797
Total current liabilities	40,328		61,950		225,529			1,148			328,955
Long-term debt	850,767		—		29,632			—			880,399
Deferred income taxes	974		12,543		23,689			(3,970		)	33,236
Other noncurrent liabilities	1,810		31,718		28,663			—			62,191
Total liabilities	893,879		106,211		307,513			(2,822		)	1,304,781
Common stock	—		—		16,966			(16,966		)	—
Polymer Group, Inc. shareholders’ equity	158,896		1,026,550		222,241			(1,248,791		)	158,896
Noncontrolling interests	—		—		843			—			843
Total equity	158,896		1,026,550		240,050			(1,265,757		)	159,739
Total liabilities and equity	$	1,052,775	$	1,132,761	$	547,563		$	(1,268,579	)	$	1,464,520

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended September 27, 2014



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	46		$	145,542		$	352,150		$	275		$	498,013
Cost of goods sold	(93		)	(117,548		)	(299,605		)	(275		)	(417,521		)
Gross profit	(47		)	27,994			52,545			—			80,492
Selling, general and administrative expenses	(14,412		)	(13,534		)	(37,850		)	—			(65,796		)
Special charges, net	(3,886		)	(229		)	(10,778		)	—			(14,893		)
Other operating, net	146			96			2,024			—			2,266
Operating income (loss)	(18,199		)	14,327			5,941			—			2,069
Other income (expense):
Interest expense	(20,569		)	2,806			(11,019		)	—			(28,782		)
Debt modification and extinguishment costs	(2,612		)	—			(2,375		)	—			(4,987		)
Intercompany royalty and technical service fees	2,301			1,150			(3,451		)	—			—
Foreign currency and other, net	(6,803		)	979			(20,764		)	—			(26,588		)
Equity in earnings of subsidiaries	(12,803		)	(27,303		)	—			40,106			—
Income (loss) before income taxes	(58,685		)	(8,041		)	(31,668		)	40,106			(58,288		)
Income tax (provision) benefit	3,457			(4,818		)	2,498			—			1,137
Net income (loss)	(55,228		)	(12,859		)	(29,170		)	40,106			(57,151		)
Less: Earnings attributable to noncontrolling interests	—			—			(1,923		)	—			(1,923		)
Net income (loss) attributable to Polymer Group, Inc.	$	(55,228	)	$	(12,859	)	$	(27,247	)	$	40,106		$	(55,228	)
Comprehensive income (loss) attributable to Polymer Group, Inc.	$	(87,958	)	$	(45,806	)	$	(51,084	)	$	96,890		$	(87,958	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended September 28, 2013



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	—		$	93,021		$	201,840		$	(5,882	)	$	288,979
Cost of goods sold	(93		)	(77,996		)	(168,572		)	5,882			(240,779		)
Gross profit	(93		)	15,025			33,268			—			48,200
Selling, general and administrative expenses	(9,078		)	(6,060		)	(18,325		)	—			(33,463		)
Special charges, net	(6,539		)	(37		)	(517		)	—			(7,093		)
Other operating, net	36			(92		)	(615		)	—			(671		)
Operating income (loss)	(15,674		)	8,836			13,811			—			6,973
Other income (expense):
Interest expense	(14,800		)	6,924			(5,309		)	—			(13,185		)
Intercompany royalty and technical service fees	1,425			1,681			(3,106		)	—			—
Foreign currency and other, net	2,815			(5		)	(512		)	—			2,298
Equity in earnings of subsidiaries	15,695			989			—			(16,684		)	—
Income (loss) before income taxes	(10,539		)	18,425			4,884			(16,684		)	(3,914		)
Income tax (provision) benefit	2,272			(2,815		)	(3,810		)	—			(4,353		)
Net income (loss)	$	(8,267	)	$	15,610		$	1,074		$	(16,684	)	$	(8,267	)
Comprehensive income (loss) attributable to Polymer Group, Inc.	$	(3,272	)	$	23,413		$	1,603		$	(25,016	)	$	(3,272	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Nine Months Ended September 27, 2014



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	46		$	441,790		$	946,836		$	(28,177	)	$	1,360,495
Cost of goods sold	(223		)	(354,160		)	(792,746		)	28,177			(1,118,952		)
Gross profit	(177		)	87,630			154,090			—			241,543
Selling, general and administrative expenses	(37,442		)	(41,994		)	(106,063		)	—			(185,499		)
Special charges, net	(22,823		)	(2,443		)	(22,602		)	—			(47,868		)
Other operating, net	157			395			(3,210		)	—			(2,658		)
Operating income (loss)	(60,285		)	43,588			22,215			—			5,518
Other income (expense):
Interest expense	(53,987		)	9,406			(23,024		)	—			(67,605		)
Debt modification and extinguishment costs	(13,350		)	—			(2,375		)	—			(15,725		)
Intercompany royalty and technical service fees	(4,898		)	3,943			955			—			—
Foreign currency and other, net	16,114			854			(28,594		)	—			(11,626		)
Equity in earnings of subsidiaries	21,647			(25,764		)	—			4,117			—
Income (loss) before income taxes	(94,759		)	32,027			(30,823		)	4,117			(89,438		)
Income tax (provision) benefit	10,387			(10,403		)	866			—			850
Net income (loss)	(84,372		)	21,624			(29,957		)	4,117			(88,588		)
Less: Earnings attributable to noncontrolling interests	—			—			(4,216		)	—			(4,216		)
Net income (loss) attributable to Polymer Group, Inc.	$	(84,372	)	$	21,624		$	(25,741	)	$	4,117		$	(84,372	)
Comprehensive income (loss) attributable to Polymer Group, Inc.	$	(113,412	)	$	(7,620	)	$	(44,583	)	$	52,203		$	(113,412	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Nine Months Ended September 28, 2013



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	—		$	275,850		$	607,758		$	(16,009	)	$	867,599
Cost of goods sold	(129		)	(234,710		)	(504,313		)	16,009			(723,143		)
Gross profit	(129		)	41,140			103,445			—			144,456
Selling, general and administrative expenses	(33,053		)	(17,824		)	(56,299		)	—			(107,176		)
Special charges, net	(8,364		)	(176		)	(2,107		)	—			(10,647		)
Other operating, net	55			(313		)	(1,717		)	—			(1,975		)
Operating income (loss)	(41,491		)	22,827			43,322			—			24,658
Other income (expense):
Interest expense	(37,274		)	13,111			(13,429		)	—			(37,592		)
Intercompany royalty and technical service fees	4,181			4,985			(9,166		)	—			—
Foreign currency and other, net	2,815			(252		)	(2,585		)	—			(22		)
Equity in earnings of subsidiaries	42,848			6,679			—			(49,527		)	—
Income (loss) before income taxes	(28,921		)	47,350			18,142			(49,527		)	(12,956		)
Income tax (provision) benefit	6,521			(4,502		)	(11,463		)	—			(9,444		)
Net income (loss)	$	(22,400	)	$	42,848		$	6,679		$	(49,527	)	$	(22,400	)
Comprehensive income (loss) attributable to Polymer Group, Inc.	$	(18,652	)	$	48,449		$	6,939		$	(55,388	)	$	(18,652	)

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended September 27, 2014



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	127,723		$	178,124		$	(293,789	)	$	—		$	12,058
Investing activities:
Purchases of property, plant and equipment	(2,469		)	(22,092		)	(29,248		)	—			(53,809		)
Proceeds from the sale of assets	—			—			2,635			—			2,635
Acquisition of intangibles and other	(182		)	—			—			—			(182		)
Acquisitions, net of cash acquired	(356,039		)	—			—			—			(356,039		)
Intercompany investing activities, net	(361,604		)	(421,262		)	2,651			780,215			—
Net cash provided by (used in) investing activities	(720,294		)	(443,354		)	(23,962		)	780,215			(407,395		)
Financing activities:
Issuance of common stock	750			—			—			—			750
Proceeds from long-term borrowings	628,000			—			152			—			628,152
Proceeds from short-term borrowings	1,265			—			20,329			—			21,594
Repayment of long-term borrowings	(61,478		)	—			(59,592		)	—			(121,070		)
Repayment of short-term borrowings	(1,556		)	—			(6,666		)	—			(8,222		)
Loan acquisition costs	(21,289		)	—			—			—			(21,289		)
Debt modification costs	(1,680		)	—			(2,375		)	—			(4,055		)
Intercompany financing activities, net	50,517			365,024			364,674			(780,215		)	—
Net cash provided by (used in) financing activities	594,529			365,024			316,522			(780,215		)	495,860
Effect of exchange rate changes on cash	—			—			(3,904		)	—			(3,904		)
Net change in cash and cash equivalents	1,958			99,794			(5,133		)	—			96,619
Cash and cash equivalents at beginning of period	2,068			13,103			70,893			—			86,064
Cash and cash equivalents at end of period	$	4,026		$	112,897		$	65,760		$	—		$	182,683

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended September 28, 2013



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(42,502	)	$	46,834		$	(226	)	$	—		$	4,106
Investing activities:
Purchases of property, plant and equipment	(23,703		)	(2,663		)	(9,133		)	—			(35,499		)
Proceeds from the sale of assets	—			—			25			—			25
Acquisition of intangibles and other	(260		)	—			(4,226		)	—			(4,486		)
Intercompany investing activities, net	6,408			(59,073		)	(5,000		)	57,665			—
Net cash provided by (used in) investing activities	(17,555		)	(61,736		)	(18,334		)	57,665			(39,960		)
Financing activities:
Issuance of common stock	(222		)	—			—			—			(222		)
Proceeds from long-term borrowings	234			—			18,256			—			18,490
Proceeds from short-term borrowings	1,879			—			—			—			1,879
Repayment of long-term borrowings	(109		)	—			(5,157		)	—			(5,266		)
Repayment of short-term borrowings	(2,476		)	—			—			—			(2,476		)
Loan acquisition costs	—			—			—			—			—
Intercompany financing activities, net	61,800			(1,408		)	(2,727		)	(57,665		)	—
Net cash provided by (used in) financing activities	61,106			(1,408		)	10,372			(57,665		)	12,405
Effect of exchange rate changes on cash	—			—			248			—			248
Net change in cash and cash equivalents	1,049			(16,310		)	(7,940		)	—			(23,201		)
Cash and cash equivalents at beginning of period	486			28,285			69,108			—			97,879
Cash and cash equivalents at end of period	$	1,535		$	11,975		$	61,168		$	—		$	74,678