v2.4.0.6

Financial Guarantees and Condensed Consolidating Financial Statements

6 Months Ended

Jun. 30, 2012

Financial Guarantees and Condensed Consolidating Financial Statements [Abstract]

Financial Guarantees and Condensed Consolidating Financial Statements

Note 18.  Financial Guarantees and Condensed Consolidating Financial Statements

Polymer’s Senior Secured Notes are fully, unconditionally and jointly and severally guaranteed on a senior secured basis by each of Polymer’s 100% owned domestic subsidiaries (collectively, the “Guarantors”). Substantially all of Polymer’s operating income and cash flow is generated by its subsidiaries. As a result, funds necessary to meet Polymer’s debt service obligations may be provided, in part, by distributions or advances from its subsidiaries. Under certain circumstances, contractual and legal restrictions, as well as the financial condition and operating requirements of Polymer’s subsidiaries, could limit Polymer’s ability to obtain cash from its subsidiaries for the purpose of meeting its debt service obligations, including the payment of principal and interest on the Senior Secured Notes. Although holders of the Senior Secured Notes will be direct creditors of Polymer’s principal direct subsidiaries by virtue of the guarantees, Polymer has subsidiaries that are not included among the Guarantors (collectively, the “Non-Guarantors”), and such subsidiaries will not be obligated with respect to the Senior Secured Notes. As a result, the claims of creditors of the Non-Guarantors will effectively have priority with respect to the assets and earnings of such companies over the claims of creditors of Polymer, including the holders of the Senior Secured Notes.

The following Condensed Consolidating Financial Statements are presented to satisfy the disclosure requirements of Rule 3-10 of Regulation S-X. In accordance with Rule 3-10, the subsidiary guarantors are all 100% owned by PGI (the “Issuer”). The guarantees on the Senior Secured Notes are full and unconditional and all guarantees are joint and several. The information presents Condensed Consolidating Balance Sheets as of June 30, 2012 and December 31, 2011; Condensed Consolidating Statements of Operations for the three month period ended June 30, 2012 and July 2, 2011; and Condensed Consolidating Statements of Operations and Condensed Consolidating Statements of Cash Flows for the six month period ended June 30, 2012 (Successor), the five month period ended July 2, 2011 (Successor) and the one month period ended January 28, 2011 (Predecessor) of (1) PGI (Issuer), (2) the Guarantors, (3) the Non-Guarantors and (4) consolidating eliminations to arrive at the information for the Company on a consolidated basis.

Condensed Consolidating

Balance Sheet

As of June 30, 2012

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Current Assets:
Cash and cash equivalents		$	9,997			$	17,800			$	50,273			$	—			$	78,070
Accounts receivable, net			—				27,417				112,053				—				139,470
Inventories, net			—				25,696				72,084				—				97,780
Deferred income taxes			80				—				3,845				458				4,383
Other current assets			3,334				9,267				26,003				—				38,604
Total current assets			13,411				80,180				264,258				458				358,307
Property, plant and equipment, net			23,382				104,662				358,131				—				486,175
Goodwill			—				20,718				59,697				—				80,415
Intangible assets, net			25,764				43,834				9,918				—				79,516
Net investment in and advances to (from) subsidiaries			698,289				727,754				(206,620	)			(1,219,423	)			—
Deferred income taxes			—				—				1,942				—				1,942
Other noncurrent assets			40				5,819				34,695				—				40,554
Total assets		$	760,886			$	982,967			$	522,021			$	(1,218,965	)		$	1,046,909
Current liabilities:
Short-term borrowings		$	725			$	—			$	3,000			$	—			$	3,725
Accounts payable and accrued liabilities			28,935				39,316				130,998				—				199,249
Income taxes payable			—				—				2,536				—				2,536
Deferred income taxes			—				1,016				1,690				(1,016	)			1,690
Current portion of long-term debt			107				—				9,429				—				9,536
Total current liabilities			29,767				40,332				147,653				(1,016	)			216,736
Long-term debt			560,088				—				23,549				—				583,637
Deferred income taxes			670				7,623				24,879				1,474				34,646
Other noncurrent liabilities			—				14,393				27,136				—				41,529
Total liabilities			590,525				62,348				223,217				458				876,548
Common stock			—				—				36,083				(36,083	)			—
Other shareholders’ equity			170,361				920,619				262,721				(1,183,340	)			170,361
Total equity			170,361				920,619				298,804				(1,219,423	)			170,361
Total liabilities and equity		$	760,886			$	982,967			$	522,021			$	(1,218,965	)		$	1,046,909

Condensed Consolidating

Balance Sheet

As of December 31, 2011

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Current Assets:
Cash and cash equivalents		$	3,135			$	14,574			$	55,033			$	—			$	72,742
Accounts receivable, net			—				18,270				122,902				—				141,172
Inventories, net			—				34,381				69,530				—				103,911
Deferred income taxes			80				—				3,866				458				4,404
Other current assets			1,173				8,783				26,088				—				36,044
Total current assets			4,388				76,008				277,419				458				358,273
Property, plant and equipment, net			9,267				111,469				372,616				—				493,352
Goodwill			—				20,718				59,828				—				80,546
Intangible assets, net			27,545				45,247				10,959				—				83,751
Net investment in and advances to (from) subsidiaries			739,121				727,290				(238,038	)			(1,228,373	)			—
Deferred income taxes			—				—				1,939				—				1,939
Other noncurrent assets			409				5,424				36,884				—				42,717
Total assets		$	780,730			$	986,156			$	521,607			$	(1,227,915	)		$	1,060,578
Current liabilities:
Short-term borrowings		$	—			$	—			$	5,000			$	—			$	5,000
Accounts payable and accrued liabilities			32,524				26,897				130,940				155				190,516
Income taxes payable			—				37				986				—				1,023
Deferred income taxes			—				1,016				1,691				(1,016	)			1,691
Current portion of long-term debt			107				—				7,485				—				7,592
Total current liabilities			32,631				27,950				146,102				(861	)			205,822
Long-term debt			560,132				—				27,721				—				587,853
Deferred income taxes			670				7,624				25,039				1,474				34,807
Other noncurrent liabilities			—				17,230				27,569				—				44,799
Total liabilities			593,433				52,804				226,431				613				873,281
Common stock			—				—				36,083				(36,083	)			—
Other shareholders’ equity			187,297				933,352				259,093				(1,192,445	)			187,297
Total equity			187,297				933,352				295,176				(1,228,528	)			187,297
Total liabilities and equity		$	780,730			$	986,156			$	521,607			$	(1,227,915	)		$	1,060,578

Condensed Consolidating

Statement of Operations

For the Three Months Ended June 30, 2012

Successor

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Net Sales		$	—			$	98,353			$	203,301			$	(5,410	)		$	296,244
Cost of goods sold			(12	)			86,090				169,157				(5,410	)			249,825
Gross profit			12				12,263				34,144				—				46,419
Selling, general and administrative expenses			8,988				6,642				19,550				—				35,180
Special charges, net			3,846				2,082				2,825				—				8,753
Other operating (income) loss, net			(10	)			(118	)			(31	)			—				(159	)
Operating (loss) income			(12,812	)			3,657				11,800				—				2,645
Other expense (income):
Interest expense, net			7,708				(6,708	)			11,738				—				12,738
Intercompany royalty and technical service fees, net			(1,438	)			(1,631	)			3,069				—				—
Foreign currency and other (gain) loss, net			(32	)			(402	)			3,594				—				3,160
Equity in earnings of subsidiaries			3,226				(7,726	)			—				4,500				—
(Loss) income before income tax (benefit) expense			(15,824	)			4,672				(6,601	)			4,500				(13,253	)
Income tax (benefit) expense			(3,730	)			1,373				1,198				—				(1,159	)
Net (loss) income		$	(12,094	)		$	3,299			$	(7,799	)		$	4,500			$	(12,094	)

Condensed Consolidating

Statement of Operations

For the Three Months Ended July 2, 2011

Successor

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Net Sales		$	—			$	91,982			$	207,976			$	(3,501	)		$	296,457
Cost of goods sold			(32	)			79,806				171,572				(3,501	)			247,845
Gross profit			32				12,176				36,404				—				48,612
Selling, general and administrative expenses			8,924				7,151				21,260				—				37,335
Special charges, net			1,728				370				1,022				—				3,120
Other operating loss (income), net			790				(94	)			275				—				971
Operating (loss) income			(11,410	)			4,749				13,847				—				7,186
Other expense (income):
Interest expense, net			11,677				(3,410	)			4,152				—				12,419
Intercompany royalty and technical service fees, net			(855	)			(2,828	)			3,683				—				—
Foreign currency and other (gain) loss, net			(706	)			264				1,456				—				1,014
Equity in earnings of subsidiaries			10,057				(135	)			—				(9,922	)			—
(Loss) income before income tax expense and discontinued operations			(11,469	)			10,588				4,556				(9,922	)			(6,247	)
Income tax (benefit) expense			(2,070	)			490				2,179				—				599
(Loss) income before discontinued operations			(9,399	)			10,098				2,377				(9,922	)			(6,846	)
Loss from discontinued operations, net of tax			—				—				(2,338	)			—				(2,338	)
Loss on sale of discontinued operations			—				—				(215	)			—				(215	)
Net (loss) income attributable to Polymer Group, Inc.		$	(9,399	)		$	10,098			$	(176	)		$	(9,922	)		$	(9,399	)

Condensed Consolidating

Statement of Operations

For the Six Months Ended June 30, 2012

Successor

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Net Sales		$	—			$	193,767			$	407,843			$	(10,195	)		$	591,415
Cost of goods sold			(30	)			168,537				333,497				(10,195	)			491,809
Gross profit			30				25,230				74,346				—				99,606
Selling, general and administrative expenses			18,279				12,559				38,472				—				69,310
Special charges, net			5,324				2,297				3,551				—				11,172
Other operating (income) loss, net			(9	)			(220	)			(290	)			—				(519	)
Operating (loss) income			(23,564	)			10,594				32,613				—				19,643
Other expense (income):
Interest expense, net			18,983				(10,023	)			16,627				—				25,587
Intercompany royalty and technical service fees, net			(2,929	)			(3,442	)			6,371				—				—
Foreign currency and other (gain) loss, net			—				(239	)			3,336				—				3,097
Equity in earnings of subsidiaries			21,391				1,424				—				(22,815	)			—
(Loss) income before income tax (benefit) expense			(18,227	)			25,722				6,279				(22,815	)			(9,041	)
Income tax (benefit) expense			(5,868	)			4,205				4,981				—				3,318
Net (loss) income		$	(12,359	)		$	21,517			$	1,298			$	(22,815	)		$	(12,359	)

Condensed Consolidating

Statement of Operations

For the Five Months Ended July 2, 2011

Successor

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Net Sales		$	—			$	154,241			$	347,864			$	(6,611	)		$	495,494
Cost of goods sold			45				135,709				293,031				(6,611	)			422,174
Gross profit			(45	)			18,532				54,833				—				73,320
Selling, general and administrative expenses			15,894				11,933				35,995				—				63,822
Special charges, net			26,294				596				1,178				—				28,068
Other operating (income) loss, net			672				(145	)			674				—				1,201
Operating (loss) income			(42,905	)			6,148				16,986				—				(19,771	)
Other expense (income):
Interest expense, net			19,478				(5,866	)			7,035				—				20,647
Intercompany royalty and technical service fees, net			(2,186	)			(4,479	)			6,665				—				—
Foreign currency and other (gain) loss, net			(704	)			408				1,659				—				1,363
Equity in earnings of subsidiaries			10,438				(2,971	)			—				(7,467	)			—
(Loss) income before income tax expense and discontinued operations			(49,055	)			13,114				1,627				(7,467	)			(41,781	)
Income tax (benefit) expense			(3,493	)			2,631				1,540				—				678
(Loss) income before discontinued operations			(45,562	)			10,483				87				(7,467	)			(42,459	)
Loss from discontinued operations, net of tax			—				—				(2,829	)			—				(2,829	)
Loss on sale of discontinued operations			—				—				(215	)			—				(215	)
Net (loss) income			(45,562	)			10,483				(2,957	)			(7,467	)			(45,503	)
Net income attributable to noncontrolling interests			—				—				(59	)			—				(59	)
Net (loss) income attributable to Polymer Group, Inc.		$	(45,562	)		$	10,483			$	(3,016	)		$	(7,467	)		$	(45,562	)

Condensed Consolidating

Statement of Operations

For the One Month Ended January 28, 2011

Successor

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Net Sales		$	—			$	27,052			$	58,887			$	(1,333	)		$	84,606
Cost of goods sold			(24	)			22,587				47,301				(1,333	)			68,531
Gross profit			24				4,465				11,586				—				16,075
Selling, general and administrative expenses			3,620				1,873				6,071				—				11,564
Special charges, net			18,944				170				1,710				—				20,824
Other operating (income) loss, net			(1	)			(42	)			(521	)			—				(564	)
Operating (loss) income			(22,539	)			2,464				4,326				—				(15,749	)
Other expense (income):
Interest expense, net			1,859				(1,176	)			1,239				—				1,922
Intercompany royalty and technical service fees, net			(546	)			(683	)			1,229				—				—
Foreign currency and other loss (gain), net			28				85				(31	)			—				82
Equity in earnings of subsidiaries			5,198				1,672				—				(6,870	)			—
(Loss) income before income tax expense and discontinued operations			(18,682	)			5,910				1,889				(6,870	)			(17,753	)
Income tax (benefit) expense			(479	)			706				322				—				549
(Loss) income before discontinued operations			(18,203	)			5,204				1,567				(6,870	)			(18,302	)
Income from discontinued operations, net of tax			—				—				182				—				182
Net (loss) income			(18,203	)			5,204				1,749				(6,870	)			(18,120	)
Net income attributable to noncontrolling interests			—				—				(83	)			—				(83	)
Net (loss) income attributable to Polymer Group, Inc.		$	(18,203	)		$	5,204			$	1,666			$	(6,870	)		$	(18,203	)

Condensed Consolidating

Statement of Cash Flows

For the Six Months Ended June 30, 2012

Successor

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Net cash (used in) provided by operating activities		$	(3,151	)		$	103			$	40,715			$	—			$	37,667
Investing activities:
Purchases of property, plant and equipment			(18,502	)			(1,508	)			(29,378	)			19,758				(29,630	)
Proceeds from the sale of assets			19,758				1,646				11				(19,758	)			1,657
Acquisition of intangibles and other			(110	)			—				—				—				(110	)
Net activity in investment in and advances from (to) subsidiaries			8,201				2,985				(11,186	)			—				—
Net cash provided by (used in) investing activities			9,347				3,123				(40,553	)			—				(28,083	)
Financing activities:
Proceeds from long-term debt			—				—				25				—				25
Proceeds from short-term borrowings			1,943				—				3,000				—				4,943
Repayment of long-term debt			(44	)			—				(2,306	)			—				(2,350	)
Repayment of short-term borrowings			(1,233	)			—				(5,000	)			—				(6,233	)
Net cash provided by (used in) financing activities			666				—				(4,281	)			—				(3,615	)
Effect of exchange rate changes on cash			—				—				(641	)			—				(641	)
Net increase (decrease) in cash and cash equivalents			6,862				3,226				(4,760	)			—				5,328
Cash and cash equivalents at beginning of period			3,135				14,574				55,033				—				72,742
Cash and cash equivalents at end of period		$	9,997			$	17,800			$	50,273			$	—			$	78,070

Condensed Consolidating

Statement of Cash Flows

For the Five Months Ended July 2, 2011

Successor

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Net cash (used in) provided by operating activities		$	(37,736	)		$	20,980			$	(7,181	)		$	—			$	(23,937	)
Investing activities:
Acquisition of Polymer Group, Inc.			(403,496	)			—				—				—				(403,496	)
Purchases of property, plant and equipment			(11,867	)			(6,980	)			(27,845	)			13,108				(33,584	)
Proceeds from the sale of assets			13,108				—				9,191				(13,108	)			9,191
Acquisition of noncontrolling interest			—				—				(7,246	)			—				(7,246	)
Acquisition of intangibles and other			(95	)			—				—				—				(95	)
Net activity in investment in and advances (to) from subsidiaries			(28,545	)			(10,639	)			39,184				—				—
Net cash (used in) provided by investing activities			(430,895	)			(17,619	)			13,284				—				(435,230	)
Financing activities:
Proceeds from issuance of senior notes			560,000				—				—				—				560,000
Issuance of Common Stock			259,865				—				—				—				259,865
Proceeds from long-term debt			—				—				7,000				—				7,000
Proceeds from short-term borrowings			—				—				3,245				—				3,245
Repayment of term loan			(286,470	)			—				—				—				(286,470	)
Repayment of long-term debt			(31,500	)			—				(17,697	)			—				(49,197	)
Repayment of short-term borrowings			(351	)			—				(32,825	)			—				(33,176	)
Loan acquisition costs			(19,252	)			—				—				—				(19,252	)
Net cash provided by (used in) financing activities			482,292				—				(40,277	)			—				442,015
Effect of exchange rate changes on cash			—				—				1,238				—				1,238
Net increase (decrease) in cash and cash equivalents			13,661				3,361				(32,936	)			—				(15,914	)
Cash and cash equivalents at beginning of period			42				3,210				67,519				—				70,771
Cash and cash equivalents at end of period		$	13,703			$	6,571			$	34,583			$	—			$	54,857

Condensed Consolidating

Statement of Cash Flows

For the One Month Ended January 28, 2011

Predecessor

(In Thousands)

		PGI (Issuer)				Guarantors				Non-Guarantors				Eliminations				Consolidated
Net cash (used in) provided by operating activities		$	(34,725	)		$	1,636			$	7,819			$	—			$	(25,270	)
Investing activities:
Purchases of property, plant and equipment			(28	)			(5,652	)			(2,725	)			—				(8,405	)
Proceeds from the sale of assets			—				65				40				—				105
Acquisition of intangibles and other			(5	)			—				—				—				(5	)
Net activity in investment in and advances from (to) subsidiaries			2,055				2,872				(4,927	)			—				—
Net cash provided by (used in) investing activities			2,022				(2,715	)			(7,612	)			—				(8,305	)
Financing activities:
Proceeds from long-term debt			31,500				—				—				—				31,500
Proceeds from short-term borrowings			631				—				—				—				631
Repayment of long-term debt			—				—				(24	)			—				(24	)
Repayment of short-term borrowings			—				—				(665	)			—				(665	)
Net cash provided by (used in) financing activities			32,131				—				(689	)			—				31,442
Effect of exchange rate changes on cash			—				—				549				—				549
Net (decrease) increase in cash and cash equivalents			(572	)			(1,079	)			67				—				(1,584	)
Cash and cash equivalents at beginning of period			614				4,289				67,452				—				72,355
Cash and cash equivalents at end of period		$	42			$	3,210			$	67,519			$	—			$	70,771

X

- Details

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Namespace Prefix:	pymr_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph c

-Article 5



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