v2.3.0.11
SUPPLEMENTAL GUARANTOR INFORMATION
6 Months Ended
Jun. 30, 2011
SUPPLEMENTAL GUARANTOR INFORMATION  
SUPPLEMENTAL GUARANTOR INFORMATION

17. SUPPLEMENTAL GUARANTOR INFORMATION

        Georgia Gulf Corporation is in essence a holding company for all of its wholly and majority owned subsidiaries. Our payment obligations under the indenture for our 9.0 percent senior secured notes are guaranteed by Georgia Gulf Lake Charles, LLC, Georgia Gulf Chemicals & Vinyls, LLC, Royal Mouldings Limited, Royal Plastics Group (USA) Limited, Rome Delaware Corporation, Plastic Trends, Inc., Royal Group Sales (USA) Limited, Royal Outdoor Products, Inc., Royal Window and Door Profiles Plant 13 Inc., and Royal Window and Door Profiles Plant 14 Inc., and Exterior Portfolio LLC, all of which are wholly-owned subsidiaries (the "Guarantor Subsidiaries") of Georgia Gulf Corporation. The guarantees are full, unconditional and joint and several. Investments in subsidiaries in the following tables reflect investments in wholly owned entities within Georgia Gulf Corporation. 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 included 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.

        The following condensed consolidating balance sheet information, statements of operations information and statements of cash flows information present the combined financial statements of the parent company, and the combined financial statements of our Guarantor Subsidiaries and our remaining subsidiaries (the "Non-Guarantor Subsidiaries"). Separate financial statements of the Guarantor Subsidiaries are not presented because we have determined that they would not be material to investors.


Georgia Gulf Corporation and Subsidiaries
Supplemental Condensed Consolidating Balance Sheet Information
June 30, 2011
(Unaudited)

(In thousands)
  Parent
Company
  Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Eliminations   Consolidated  

Assets

                               

Cash and cash equivalents

  $   $ 32,779   $ 8,907   $   $ 41,686  

Receivables, net

        665,167     124,408     (369,946 )   419,629  

Inventories

        251,072     118,071         369,143  

Prepaid expenses

    71     15,269     4,891         20,231  

Income tax receivable

        113     319         432  

Deferred income taxes

        10,769             10,769  
                       
 

Total current assets

    71     975,169     256,596     (369,946 )   861,890  

Property, plant and equipment, net

    789     424,689     238,395         663,873  

Long term receivables—affiliates

    471,653             (471,653 )    

Goodwill

        100,463     115,526         215,989  

Intangibles, net

        44,858     2,561         47,419  

Deferred income taxes

            8,666         8,666  

Other assets

    18,876     66,829     10,153         95,858  

Investment in subsidiaries

    1,141,530             (1,141,530 )    
                       
 

Total assets

  $ 1,632,919   $ 1,612,008   $ 631,897   $ (1,983,129 ) $ 1,893,695  
                       

Liabilities and Stockholders' Equity

                               

Current portion of long-term debt

  $ 37,557   $   $   $   $ 37,557  

Accounts payable

    351,612     188,628     48,801     (360,546 )   228,495  

Interest payable

    22,629         79         22,708  

Income taxes payable

    91     (91 )   1,269         1,269  

Accrued compensation

    3,538     8,747     10,043         22,328  

Liability for unrecognized income tax benefits and other tax reserves

        2,940             2,940  

Other accrued liabilites

    419     32,792     31,447         64,658  
                       
 

Total current liabilities

    415,846     233,016     91,639     (360,546 )   379,955  

Long-term debt

    598,980         145,595         744,575  

Long-term payables—affiliates

            481,053     (481,053 )    

Liability for unrecognized income tax benefits

        7,207     39,559         46,766  

Deferred income taxes

    24,470     177,707             202,177  

Other non-current liabilities

    112,893     43,595     2,360     (119,356 )   39,492  
                       
 

Total liabilities

    1,152,189     461,525     760,206     (960,955 )   1,412,965  
                       

Total stockholders' equity (deficit)

    480,730     1,150,483     (128,309 )   (1,022,174 )   480,730  
                       
 

Total liabilities and stockholders' equity

  $ 1,632,919   $ 1,612,008   $ 631,897   $ (1,983,129 ) $ 1,893,695  
                       

Georgia Gulf Corporation and Subsidiaries
Supplemental Condensed Consolidating Balance Sheet Information
December 31, 2010
(Unaudited)

(In thousands)
  Parent
Company
  Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Eliminations   Consolidated  

Cash and cash equivalents

  $   $ 93,681   $ 29,077   $   $ 122,758  

Receivables, net

    72     580,625     66,537     (379,572 )   267,662  

Inventories

        174,231     87,004         261,235  

Prepaid expenses

    147     12,712     3,747         16,606  

Income tax receivable

        844     55         899  

Deferred income taxes

        7,266             7,266  
                       
 

Total current assets

    219     869,359     186,420     (379,572 )   676,426  

Property, plant and equipment, net

    228     413,137     239,772         653,137  

Long term receivables—affiliates

    457,500             (457,500 )    

Goodwill

        97,572     112,059         209,631  

Intangible assets, net

        11,875     2,476         14,351  

Deferred income taxes

            8,078         8,078  

Other assets

    18,572     75,416     10,090         104,078  

Investment in subsidiaries

    1,081,369             (1,081,369 )    
                       
 

Total assets

  $ 1,557,888   $ 1,467,359   $ 558,895   $ (1,918,441 ) $ 1,665,701  
                       

Current portion of long-term debt

  $ 22,128   $ 4   $   $   $ 22,132  

Accounts payable

    375,604     112,422     24,185     (379,572 )   132,639  

Interest payable

    22,528         30         22,558  

Income taxes payable

        1,683     1,227         2,910  

Accrued compensation

        23,863     14,519         38,382  

Liability for unrecognized income tax benefits and other tax reserves

        2,897     5,925         8,822  

Other accrued liabilities

    419     23,162     24,955         48,536  
                       
 

Total current liabilities

    420,679     164,031     70,841     (379,572 )   275,979  

Long-term debt

    555,425         112,385         667,810  

Long-term payables—affiliates

            457,500     (457,500 )    

Liability for unrecognized income tax benefits

        6,919     39,965         46,884  

Deferred income taxes

    19,144     170,661             189,805  

Other non-current liabilities

    118,048     44,379     2,913     (124,709 )   40,631  
                       
 

Total liabilities

    1,113,296     385,990     683,604     (961,781 )   1,221,109  
                       

Total stockholders' equity (deficit)

    444,592     1,081,369     (124,709 )   (956,660 )   444,592  
                       
 

Total liabilities and stockholders' equity

  $ 1,557,888   $ 1,467,359   $ 558,895   $ (1,918,441 ) $ 1,665,701  
                       


Georgia Gulf Corporation and Subsidiaries
Supplemental Condensed Consolidating Statement of Operations Information
Three Months Ended June 30, 2011
(Unaudited)

(In thousands, except share data)
  Parent
Company
  Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Eliminations   Consolidated  

Net sales

  $   $ 676,426   $ 211,083   $ (55,798 ) $ 831,711  

Operating costs and expenses:

                               
 

Cost of sales

        632,746     171,777     (55,798 )   748,725  
 

Selling, general and administrative expenses

    10,201     18,391     19,591         48,183  
 

Restructuring (income) expense

        (1,134 )   427         (707 )
                       
   

Total operating costs and expenses

    10,201     650,003     191,795     (55,798 )   796,201  
                       

Operating (loss) income

    (10,201 )   26,423     19,288         35,510  
                       

Other (expense) income:

                               
 

Interest (expense) income, net

    (18,361 )   7,612     (6,170 )       (16,919 )
 

Loss on redemption of debt

    (1,100 )               (1,100 )
 

Foreign exchange (loss) gain

    (19 )   35     (356 )       (340 )
 

Equity in income of subsidiaries

    39,169     1,003         (40,172 )    
                       

Income before income taxes

    9,488     35,073     12,762     (40,172 )   17,151  
                       

(Benefit) provision for income taxes

    (5,100 )   10,196     (2,533 )       2,563  
                       

Net income

  $ 14,588   $ 24,877   $ 15,295   $ (40,172 ) $ 14,588  
                       


Georgia Gulf Corporation and Subsidiaries
Supplemental Condensed Consolidating Statement of Operations Information
Three Months Ended June 30, 2010
(Unaudited)

(In thousands)
  Parent
Company
  Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Eliminations   Consolidated  

Net sales

  $ 4,222   $ 604,959   $ 186,422   $ (59,897 ) $ 735,706  

Operating costs and expenses:

                               
 

Cost of sales

        563,005     153,085     (55,676 )   660,414  
 

Selling, general and administrative expenses

    6,912     20,251     14,017     (4,221 )   36,959  
 

Restructuring expense

        42     397           439  
                       

Total operating costs and expenses

    6,912     583,298     167,499     (59,897 )   697,812  
                       

Operating (loss) income

    (2,690 )   21,661     18,923         37,894  

Other (expense) income:

                               
 

Interest (expense) income, net

    (18,446 )   5,048     (4,027 )       (17,425 )
 

Foreign exchange loss

   
(81

)
 
   
(348

)
 
   
(429

)
 

Equity in (loss) income of subsidiaries

    (8,993 )   1,723         7,270      
 

Intercompany interest income (expense)

    1,218         (1,218 )        
                       
 

(Loss) income before income taxes

    (28,992 )   28,432     13,330     7,270     20,040  

(Benefit) provision for income taxes

    (50,681 )   52,932     (3,900 )       (1,649 )
                       

Net income (loss)

  $ 21,689   $ (24,500 ) $ 17,230   $ 7,270   $ 21,689  
                       

Georgia Gulf Corporation and Subsidiaries
Supplemental Condensed Consolidating Statement of Operations Information
Six Months Ended June 30, 2011
(Unaudited)

(In thousands, except share data)
  Parent
Company
  Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Eliminations   Consolidated  

Net sales

  $   $ 1,382,761   $ 340,341   $ (103,454 ) $ 1,619,648  

Operating costs and expenses:

                               
 

Cost of sales

        1,274,512     289,895     (103,454 )   1,460,953  
 

Selling, general and administrative expenses

    18,817     34,896     32,956         86,669  
 

Restructuring (income) expense

        (1,134 )   1,009         (125 )
                       
   

Total operating costs and expenses

    18,817     1,308,274     323,860     (103,454 )   1,547,497  
                       

Operating (loss) income

    (18,817 )   74,487     16,481         72,151  
                       

Other (expense) income:

                               
 

Interest (expense) income, net

    (37,526 )   16,169     (12,032 )       (33,389 )
 

Loss on redemption of debt

    (1,100 )               (1,100 )
 

Foreign exchange gain (loss)

    36     45     (1,021 )       (940 )
 

Equity in income (loss) of subsidiaries

    68,479     (2,005 )       (66,474 )    
                       

Income before income taxes

    11,072     88,696     3,428     (66,474 )   36,722  
                       

(Benefit) provision for income taxes

    (15,643 )   27,904     (2,254 )       10,007  
                       

Net income

  $ 26,715   $ 60,792   $ 5,682   $ (66,474 ) $ 26,715  
                       


Georgia Gulf Corporation and Subsidiaries
Supplemental Condensed Consolidating Statement of Operations Information
Six Months Ended June 30, 2010
(Unaudited)

(In thousands)
  Parent
Company
  Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Eliminations   Consolidated  

Net sales

  $ 8,096   $ 1,157,306   $ 304,311   $ (102,558 ) $ 1,367,155  

Operating costs and expenses:

                               
 

Cost of sales

        1,105,494     253,753     (94,462 )   1,264,785  
 

Selling, general and administrative expenses

    13,982     39,522     29,409     (8,096 )   74,817  
 

Restructuring (expense) income

        586     (452 )         134  
                       

Total operating costs and expenses

    13,982     1,145,602     282,710     (102,558 )   1,339,736  
                       

Operating (loss) income

    (5,886 )   11,704     21,601         27,419  

Other (expense) income:

                               
 

Interest (expense) income, net

    (40,724 )   13,320     (7,856 )       (35,260 )
 

Foreign exchange loss

    (69 )       (365 )       (434 )
 

Equity in (loss) income of subsidiaries

    (11,606 )   1,440         10,166      
 

Intercompany interest income (expense)

    2,250         (2,250 )        
                       
 

(Loss) income before income taxes

    (56,035 )   26,464     11,130     10,166     (8,275 )

(Benefit) provision for income taxes

    (58,693 )   51,029     (3,269 )       (10,933 )
                       

Net income (loss)

  $ 2,658   $ (24,565 ) $ 14,399   $ 10,166   $ 2,658  
                       


Georgia Gulf Corporation and Subsidiaries
Supplemental Condensed Consolidating Statement of Cash Flows Information
Six Months Ended June 30, 2011
(Unaudited)

(In thousands)
  Parent
Company
  Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Eliminations   Consolidated  

Net cash provided by (used in) operating activities

  $ 15,611   $ (42,740 ) $ (45,309 ) $   $ (72,438 )
                       

Cash flows from investing activities:

                               
 

Capital expenditures

    (600 )   (18,906 )   (4,186 )       (23,692 )
 

Proceeds from sale of property, plant and equipment

        132     21         153  
 

Acquisition, net of cash acquired

        (71,623 )           (71,623 )
                       

Net cash used in investing activities

    (600 )   (90,397 )   (4,165 )       (95,162 )
                       

Cash flows from financing activities:

                               
 

Repayments on ABL Revolver

    (201,700 )       (1,946 )       (203,646 )
 

Borrowings on ABL Revolver

    282,600         31,605         314,205  
 

Repayment of long-term debt

    (22,913 )   (4 )           (22,917 )
 

Fees paid to amend or issue debt facilities and equity

    (863 )       (617 )       (1,480 )
 

Intercompany financing to fund acquisition

    (72,239 )   72,239              
 

Excess tax benefits from share-based payment arrangements

    65                 65  
 

Stock compensation plan activity

    39                 39  
                       

Net cash (used in) provided by financing activities

    (15,011 )   72,235     29,042         86,266  
                       

Effect of exchange rate changes on cash and cash equivalents

            262         262  
                       

Net change in cash and cash equivalents

        (60,902 )   (20,170 )       (81,072 )

Cash and cash equivalents at beginning of period

        93,681     29,077         122,758  
                       

Cash and cash equivalents at end of period

  $   $ 32,779   $ 8,907   $   $ 41,686  
                       


Georgia Gulf Corporation and Subsidiaries
Supplemental Condensed Consolidating Statement of Cash Flows Information
Six Months Ended June 30, 2010
(Unaudited)

(In thousands)
  Parent
Company
  Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Eliminations   Consolidated  

Net cash provided by (used in) operating activities

  $ 15,384   $ 13,808   $ (23,269 ) $   $ 5,923  
                       

Cash flows from investing activities:

                               
 

Capital expenditures

        (14,751 )   (6,031 )       (20,782 )
 

Proceeds from sale of property, plant and equipment, and assets held-for sale

            1,549         1,549  
                       

Net cash used in investing activities

        (14,751 )   (4,482 )       (19,233 )

Cash flows from financing activities:

                               
 

Repayments on ABL Revolver

    (282,640 )       (20,861 )       (303,501 )
 

Borrowings on ABL Revolver

    267,343         46,229         313,572  
 

Repayment of long-term debt

        (25 )           (25 )
 

Fees paid to amend or issue debt facilities

    (3,415 )       85         (3,330 )
 

Excess tax benefits from share-based payment arrangements

    3,328                 3,328  
                       

Net cash (used in) provided by financing activities

    (15,384 )   (25 )   25,453         10,044  
                       

Effect of exchange rate changes on cash

            (368 )       (368 )
                       

Net change in cash and cash equivalents

        (968 )   (2,666 )       (3,634 )

Cash and cash equivalents at beginning of period

        24,880     13,917         38,797  
                       

Cash and cash equivalents at end of period

  $   $ 23,912   $ 11,251   $   $ 35,163