v2.4.0.6
SUPPLEMENTAL GUARANTOR INFORMATION
12 Months Ended
Dec. 31, 2012
SUPPLEMENTAL GUARANTOR INFORMATION  
SUPPLEMENTAL GUARANTOR INFORMATION

19. SUPPLEMENTAL GUARANTOR INFORMATION

Axiall Corporation is effectively a holding company for all of its wholly-and majority-owned subsidiaries. Our payment obligations under the indenture for our 9 percent notes are guaranteed by Georgia Gulf Lake Charles, LLC, Axiall, 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., Royal Window and Door Profiles Plant 14 Inc. and Exterior Portfolio LLC, all of which are wholly-owned subsidiaries (the "Guarantor Subsidiaries") of Axiall Corporation. The guarantees are full, unconditional and joint and several. Investments in subsidiaries in the following tables reflect investments in wholly-owned entities within Axiall Corporation. The Company's Guarantor Subsidiaries and Non-Guarantor Subsidiaries (defined below) 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 certain reporting obligations under the Securities Exchange Act of 1934.

The following supplemental condensed consolidating balance sheet, statements of operations and statements of cash flows 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. The condensed consolidating financial information for the years ended December 31, 2011 and 2010 has been corrected to include comprehensive income. Management does not believe such correction is material to the previously issued financial statements.


Axiall Corporation and Subsidiaries

Supplemental Condensed Consolidating Balance Sheet

December 31, 2012

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

Assets

                               

Cash and cash equivalents

  $ -   $ 131,027   $ 69,287   $ -   $ 200,314  

Receivables, net of allowance

    2,204     989,063     55,273     (731,660 )   314,880  

Inventories

    -     201,543     86,813     -     288,356  

Prepaid expenses and other

    -     11,917     2,785     -     14,702  

Deferred income taxes

    7,945     12,957     225     -     21,127  
                       

Total current assets

    10,149     1,346,507     214,383     (731,660 )   839,379  

Property, plant and equipment, net

    1,482     422,026     214,204     -     637,712  

Long term receivables—affiliates

    457,960     9,400     -     (467,360 )   -  

Goodwill

    -     105,043     112,172     -     217,215  

Intangible assets, net

    -     40,936     2,487     -     43,423  

Other assets, net

    13,930     38,832     10,824     -     63,586  

Investment in subsidiaries

    1,446,560     -     -     (1,446,560 )   -  
                       

Total assets

  $ 1,930,081   $ 1,962,744   $ 554,070   $ (2,645,580 ) $ 1,801,315  
                       

Liabilities and Stockholders' Equity

                               

Accounts payable

  $ 745,067   $ 176,298   $ 21,519   $ (731,660 ) $ 211,224  

Interest payable

    18,892     -     -     -     18,892  

Income taxes payable

    -     13,887     1,233     -     15,120  

Accrued compensation

    -     29,414     15,284     -     44,698  

Other accrued liabilities

    983     38,513     21,663     -     61,159  
                       

Total current liabilities

    764,942     258,112     59,699     (731,660 )   351,093  

Long-term debt

    448,091     -     -     -     448,091  

Lease financing obligation

    -     -     112,269     -     112,269  

Long-term payables—affiliates

    -     -     467,360     (467,360 )   -  

Deferred income taxes

    16,874     161,040     -     -     177,914  

Other non-current liabilities

    96,627     97,031     19,597     (104,854 )   108,401  
                       

Total liabilities

    1,326,534     516,183     658,925     (1,303,874 )   1,197,768  

Total stockholders' equity (deficit)

    603,547     1,446,561     (104,855 )   (1,341,706 )   603,547  
                       

Total liabilities and stockholders' equity

  $ 1,930,081   $ 1,962,744   $ 554,070   $ (2,645,580 ) $ 1,801,315  
                       


Axiall Corporation and Subsidiaries

Supplemental Condensed Consolidating Balance Sheet

December 31, 2011

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

Assets

                               

Cash and cash equivalents

  $ -   $ 43,374   $ 45,201   $ -   $ 88,575  

Receivables, net of allowance

    -     776,859     62,469     (582,579 )   256,749  

Inventories

    -     207,854     79,700     -     287,554  

Prepaid expenses and other

    146     12,264     3,340     -     15,750  

Deferred income taxes

    -     14,769     220     -     14,989  
                       

Total current assets

    146     1,055,120     190,930     (582,579 )   663,617  

Property, plant and equipment, net

    1,292     422,302     217,306     -     640,900  

Long term receivables—affiliates

    447,661     -     -     (447,661 )   -  

Goodwill

    -     103,959     109,649     -     213,608  

Intangible assets, net

    -     44,284     2,431     -     46,715  

Other assets

    15,646     51,296     12,429     -     79,371  

Investment in subsidiaries

    1,226,725     -     -     (1,226,725 )   -  
                       

Total assets

  $ 1,691,470   $ 1,676,961   $ 532,745   $ (2,256,965 ) $ 1,644,211  
                       

Liabilities and Stockholders' Equity

                               

Accounts payable

  $ 572,600   $ 148,573   $ 20,193   $ (573,179 ) $ 168,187  

Interest payable

    20,930     -     1     -     20,931  

Income taxes payable

    (1,213 )   1,213     1,202     -     1,202  

Accrued compensation

    -     11,572     8,171     -     19,743  

Other accrued liabilities

    419     43,691     24,715     -     68,825  
                       

Total current liabilities

    592,736     205,049     54,282     (573,179 )   278,888  

Long-term debt

    497,464     -     -     -     497,464  

Lease financing obligation

    -     -     109,899     -     109,899  

Long-term payables—affiliates

    -     -     457,061     (457,061 )   -  

Deferred income taxes

    16,054     165,411     -     -     181,465  

Other non-current liabilities

    96,552     70,860     18,656     (98,237 )   87,831  
                       

Total liabilities

    1,202,806     441,320     639,898     (1,128,477 )   1,155,547  

Total stockholders' equity (deficit)

    488,664     1,235,641     (107,153 )   (1,128,488 )   488,664  
                       

Total liabilities and stockholders' equity

  $ 1,691,470   $ 1,676,961   $ 532,745   $ (2,256,965 ) $ 1,644,211  
                       


Axiall Corporation and Subsidiaries

Supplemental Condensed Consolidating Statement of Income and Comprehensive Income

Year Ended December 31, 2012

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

Net sales

  $ -   $ 2,880,835   $ 611,078   $ (166,077 ) $ 3,325,836  

Operating costs and expenses:

                               

Cost of sales

    -     2,517,928     513,519     (166,077 )   2,865,370  

Selling, general and administrative expenses

    38,097     94,509     70,891     -     203,497  

Transaction related costs, restructuring and other, net

    35,832     2,455     546     -     38,833  

Gain on sale of assets

    -     (19,250 )   -     -     (19,250 )

Long-lived asset impairment charges

    -     (824 )   -     -     (824 )
                       

Total operating costs and expenses

    73,929     2,594,818     584,956     (166,077 )   3,087,626  
                       

Operating income (loss)

    (73,929 )   286,017     26,122     -     238,210  
                       

Other income (expense)

                               

Interest income (expense), net

    (89,878 )   56,199     (23,465 )   -     (57,144 )

Loss on redemption and other debt costs

    (2,720 )   -     -     -     (2,720 )

Foreign exchange gain (loss)

    247     (61 )   (748 )   -     (562 )

Equity in income of subsidiaries

    233,316     748     -     (234,064 )   -  
                       

Income before income taxes

    67,036     342,903     1,909     (234,064 )   177,784  
                       

Provision for (benefit from) income taxes

    (53,525 )   115,268     (4,520 )   -     57,223  
                       

Net income

  $ 120,561   $ 227,635   $ 6,429   $ (234,064 ) $ 120,561  
                       

Comprehensive income

  $ 116,842   $ 219,839   $ 4,128   $ (223,967 ) $ 116,842  
                       


Axiall Corporation and Subsidiaries

Supplemental Condensed Consolidating Statement of Income and Comprehensive Income

Year Ended December 31, 2011

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

Net sales

  $ -   $ 2,747,075   $ 649,708   $ (173,899 ) $ 3,222,884  

Operating costs and expenses:

                               

Cost of sales

    -     2,540,607     552,917     (173,899 )   2,919,625  

Selling, general and administrative expenses

    32,000     73,652     62,569     -     168,221  

Transaction related costs, restructuring and other, net

    -     686     2,585     -     3,271  

Gain on sale of assets

    -     (1,150 )   -     -     (1,150 )

Long-lived asset impairment charges

    -     3,445     4,873     -     8,318  
                       

Total operating costs and expenses

    32,000     2,617,240     622,944     (173,899 )   3,098,285  
                       

Operating income (loss)

    (32,000 )   129,835     26,764     -     124,599  
                       

Other income (expense)

                               

Interest income (expense), net

    (77,126 )   35,823     (24,062 )   -     (65,365 )

Loss on redemption and other debt costs

    (4,908 )   -     -     -     (4,908 )

Foreign exchange gain (loss)

    (23 )   75     (838 )   -     (786 )

Equity in income of subsidiaries

    180,797     (416 )   -     (180,381 )   -  
                       

Income before income taxes

    66,740     165,317     1,864     (180,381 )   53,540  
                       

Provision for (benefit from) income taxes

    8,983     6,163     (19,363 )   -     (4,217 )
                       

Net income

  $ 57,757   $ 159,154   $ 21,227   $ (180,381 ) $ 57,757  
                       

 

                               

Comprehensive income

  $ 39,816   $ 145,112   $ 23,551   $ (168,663 ) $ 39,816  
                       


Axiall Corporation and Subsidiaries

Supplemental Condensed Consolidating Statement of Income and Comprehensive Income

Year Ended December 31, 2010

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

Net sales

  $ 12,455   $ 2,383,630   $ 613,103   $ (191,148 ) $ 2,818,040  

Operating costs and expenses:

                               

Cost of sales

    -     2,206,220     516,110     (178,692 )   2,543,638  

Selling, general and administrative expenses

    32,161     76,936     63,390     (12,456 )   160,031  

Transaction related costs, restructuring and other, net

    -     587     (485 )   -     102  
                       

Total operating costs and expenses

    32,161     2,283,743     579,015     (191,148 )   2,703,771  
                       

Operating income (loss)

    (19,706 )   99,887     34,088     -     114,269  
                       

Other income (expense)

                               

Interest income (expense), net

    (73,900 )   25,954     (21,527 )   -     (69,473 )

Foreign exchange loss (gain)

    132     13     (984 )   -     (839 )

Equity in income of subsidiaries

    133,432     1,976     -     (135,408 )   -  
                       

Income before income taxes

    39,958     127,830     11,577     (135,408 )   43,957  
                       

Provision for (benefit from) income taxes

    (2,720 )   12,181     (8,182 )   -     1,279  
                       

Net income

  $ 42,678   $ 115,649   $ 19,759   $ (135,408 ) $ 42,678  
                       

    

                               

Comprehensive income

  $ 46,782   $ 112,963   $ 11,672   $ (124,635 ) $ 46,782  
                       


Axiall Corporation and Subsidiaries

Supplemental Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2012

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

Net cash provided by operating activities

  $ 62,320   $ 126,540   $ 42,386   $ -   $ 231,246  
                       

Investing activities:

                               

Capital expenditures

    (357 )   (62,627 )   (17,354 )   -     (80,338 )

Proceeds from sale of assets

    -     23,534     87     -     23,621  

Distribution from affiliate

    1,854     206     -     (2,060 )   -  
                       

Net cash used in investing activities

    1,497     (38,887 )   (17,267 )   (2,060 )   (56,717 )

Financing activities:

                               

Long-term debt payments

    (51,500 )   -     -     -     (51,500 )

Fees paid related to financing activities

    (1,514 )   -     -     -     (1,514 )

Return of capital

    -     -     (2,060 )   2,060     -  

Tax benefits from employee share-based exercises

    2,747     -     -     -     2,747  

Dividends paid

    (8,318 )                     (8,318 )

Stock compensation plan activity

    (5,232 )   -     -     -     (5,232 )
                       

Net cash (used in) provided by financing activities

    (63,817 )   -     (2,060 )   2,060     (63,817 )
                       

Effect of exchange rate changes on cash and cash equivalents

    -     -     1,027     -     1,027  
                       

Net change in cash and cash equivalents

    -     87,653     24,086     -     111,739  

Cash and cash equivalents at beginning of year

    -     43,374     45,201     -     88,575  
                       

Cash and cash equivalents at end of year

  $ -   $ 131,027   $ 69,287   $ -   $ 200,314  
                       


Axiall Corporation and Subsidiaries

Supplemental Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2011

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

Net cash provided by operating activities

  $ 158,297   $ 1,736   $ 27,416   $ -   $ 187,449  
                       

Investing activities:

                               

Capital expenditures

    (1,193 )   (53,953 )   (11,236 )   -     (66,382 )

Proceeds from sale of assets

    -     1,218     25     -     1,243  

Acquisitions, net of cash acquired

    -     (71,371 )   -     -     (71,371 )
                       

Net cash used in investing activities

    (1,193 )   (124,106 )   (11,211 )   -     (136,510 )

Financing activities:

                               

Long-term debt payments

    (85,053 )   (4 )   -     -     (85,057 )

Fees paid related to financing activities

    (1,394 )   -     (617 )   -     (2,011 )

Intercompany financing to fund acquisition

    (72,067 )   72,067     -     -     -  

Tax benefits from employee share-based exercises

    1,371     -     -     -     1,371  

Stock compensation plan activity

    39     -     -     -     39  
                       

Net cash (used in) provided by financing activities

    (157,104 )   72,063     (617 )   -     (85,658 )
                       

Effect of exchange rate changes on cash and cash equivalents

    -     -     536     -     536  
                       

Net change in cash and cash equivalents

    -     (50,307 )   16,124     -     (34,183 )

Cash and cash equivalents at beginning of year

    -     93,681     29,077     -     122,758  
                       

Cash and cash equivalents at end of year

  $ -   $ 43,374   $ 45,201   $ -   $ 88,575  
                       


Axiall Corporation and Subsidiaries

Supplemental Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2010

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

Net cash provided by operating activities

  $ 55,411   $ 100,283   $ 28,105   $ -   $ 183,799  
                       

Investing activities:

                               

Capital expenditures

    -     (31,461 )   (14,253 )   -     (45,714 )

Proceeds from sale of assets

    -     16     1,053     -     1,069  
                       

Net cash used in investing activities

    -     (31,445 )   (13,200 )   -     (44,645 )

Financing activities:

                               

Net change in ABL revolver

    (56,000 )   -     (353 )   -     (56,353 )

Long-term debt payments

    -     (37 )   -     -     (37 )

Fees paid related to financing activities

    (3,412 )   -     82     -     (3,330 )

Tax benefits from employee share-based exercises

    4,001     -     -     -     4,001  
                       

Net cash used in financing activities

    (55,411 )   (37 )   (271 )   -     (55,719 )

Effect of exchange rate changes on cash and cash equivalents

    -     -     526     -     526  
                       

Net change in cash and cash equivalents

    -     68,801     15,160     -     83,961  

Cash and cash equivalents at beginning of year

    -     24,880     13,917     -     38,797  
                       

Cash and cash equivalents at end of year

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