Basis of Presentation

The accompanying consolidated financial statements reflect the consolidated operations of the Company and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) as defined by the Financial Accounting Standards Board (“FASB”) within the FASB Accounting Standards Codification (“ASC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to present fairly the consolidated results for the periods presented. Certain reclassifications of amounts reported in prior periods have been made to conform with the current period presentation.

On January 28, 2011, pursuant to an Agreement and Plan of Merger, dated as of October 4, 2010, the Company was acquired by affiliates of the Blackstone Group (“Blackstone”), along with certain members of the Company's management (the "Merger"), for an aggregate purchase price valued at $403.5 million. As a result, the Company became a privately-held company. Under the guidance provided by the Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Topic 5J, “New Basis of Accounting Required in Certain Circumstances,” push-down accounting is required when such transactions result in an entity becoming substantially wholly-owned. Therefore, the basis in shares of common stock of the Company has been pushed down to the Company from PGI Specialty Materials, Inc., a Delaware corporation ("PGI-SMI") that owns 100% of the issued and outstanding common stock of Scorpio Acquisition Corporation, a Delaware corporation ("Parent") that owns 100% of the issued and outstanding common stock of the Company.

The Company's fiscal year is based on a 52 week period ending on the Saturday closest to each December 31. The three months ended September 27, 2014 and September 28, 2013 contain operating results for 13 weeks, respectively. The nine months ended September 27, 2014 and September 28, 2013 each contain operating results for 39 weeks.

Restatement

The Company has restated its previously issued September 27, 2014 Consolidated Balance Sheets and Consolidated Statements of Changes in Equity to correct errors related to the accounting for the redeemable noncontrolling interest of $93.6 million acquired in the acquisition of Providência. The Company determined that ASC 480, "Distinguishing Liabilities from Equity" ("ASC 480") requires the noncontrolling interest to be presented as mezzanine equity on the Consolidated Balance Sheets and adjusted to its estimated maximum redemption amount at each balance sheet date. Refer to Note 4, "Acquisitions" for further information on the acquisition of Providência.

The impact of this restatement when compared to the Company's previously reported Consolidated Balance Sheet as of September 27, 2014 is as follows:



	September 27, 2014
In thousands	As Previously Reported		Restatement Adjustments			Restated
Redeemable noncontrolling interest	$	—	$	93,645		$	93,645

Additional paid-in-capital	298,164		(4,447		)	293,717
Total Polymer Group, Inc. shareholders' equity	49,504		(4,447		)	45,057
Noncontrolling interest	89,839		(89,198		)	641
Total equity	139,343		(93,645		)	45,698
Total liabilities and equity	$	2,127,616	$	—		$	2,127,616

The restatement has no impact on the Consolidated Statements of Comprehensive Income (Loss) or the Consolidated Statement of Cash Flows. Refer to Note 15, "Redeemable Noncontrolling Interest" for further information on the accounting of the redeemable noncontrolling interest.