Financial Guarantees and Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2012

Financial Guarantees and Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

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

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

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