Financial Guarantees and Condensed Consolidating Financial Statements (Tables)

Condensed Consolidating Balance Sheet

As of June 29, 2013



In thousands	PGI (Issuer)			Guarantors		Non-Guarantors			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	699		$	18,908	$	60,864		$	—		$	80,471
Accounts receivable, net	—			28,195		115,997			—			144,192
Inventories, net	(76		)	22,238		75,607			—			97,769
Deferred income taxes	—			613		3,864			(613		)	3,864
Other current assets	4,466			9,556		26,839			—			40,861
Total current assets	5,089			79,510		283,171			(613		)	367,157
Property, plant and equipment, net	1,419			95,052		382,127			—			478,598
Goodwill	—			20,718		60,064			—			80,782
Intangible assets, net	22,684			41,008		10,899			—			74,591
Net investment in and advances to (from) subsidiaries	701,902			758,438		(213,382		)	(1,246,958		)	—
Deferred income taxes	—			—		1,392			—			1,392
Other noncurrent assets	303			5,629		18,845			—			24,777
Total assets	$	731,397		$	1,000,355	$	543,116		$	(1,247,571	)	$	1,027,297
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings	$	1,138		$	—	$	—		$	—		$	1,138
Accounts payable and accrued liabilities	37,581			36,793		136,490			—			210,864
Income taxes payable	—			—		2,476			—			2,476
Deferred income taxes	331			—		14			134			479
Current portion of long-term debt	167			—		20,334			—			20,501
Total current liabilities	39,217			36,793		159,314			134			235,458
Long-term debt	560,161			—		29,086			—			589,247
Deferred income taxes	272			9,149		24,166			(748		)	32,839
Other noncurrent liabilities	2,529			11,675		26,331			—			40,535
Total liabilities	602,179			57,617		238,897			(614		)	898,079
Common stock	—			—		36,083			(36,083		)	—
Other shareholders’ equity	129,218			942,738		268,136			(1,210,874		)	129,218
Total shareholders' equity	129,218			942,738		304,219			(1,246,957		)	129,218
Total liabilities and shareholders' equity	$	731,397		$	1,000,355	$	543,116		$	(1,247,571	)	$	1,027,297

Condensed Consolidating Balance Sheet

As of December 29, 2012



In thousands	PGI (Issuer)		Guarantors		Non-Guarantors			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	486	$	28,285	$	69,108		$	—		$	97,879
Accounts receivable, net	—		22,350		109,219			—			131,569
Inventories, net	—		23,843		71,121			—			94,964
Deferred income taxes	—		613		3,832			(613		)	3,832
Other current assets	1,821		7,710		23,883			—			33,414
Total current assets	2,307		82,801		277,163			(613		)	361,658
Property, plant and equipment, net	27,711		99,660		351,798			—			479,169
Goodwill	—		20,718		59,890			—			80,608
Intangible assets, net	24,313		42,422		8,928			—			75,663
Net investment in and advances to (from) subsidiaries	679,818		723,861		(188,670		)	(1,215,009		)	—
Deferred income taxes	—		—		945			—			945
Other noncurrent assets	275		5,787		17,964			—			24,026
Total assets	$	734,424	$	975,249	$	528,018		$	(1,215,622	)	$	1,022,069
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings	$	813	$	—	$	—		$	—		$	813
Accounts payable and accrued liabilities	28,511		33,344		135,050			—			196,905
Income taxes payable	—		89		3,752			—			3,841
Deferred income taxes	331		—		14			134			479
Current portion of long-term debt	107		—		19,370			—			19,477
Total current liabilities	29,762		33,433		158,186			134			221,515
Long-term debt	560,043		—		19,356			—			579,399
Deferred income taxes	273		9,149		24,506			(747		)	33,181
Other noncurrent liabilities	5,144		15,540		28,088			—			48,772
Total liabilities	595,222		58,122		230,136			(613		)	882,867
Common stock	—		—		36,083			(36,083		)	—
Other shareholders’ equity	139,202		917,127		261,799			(1,178,926		)	139,202
Total shareholders' equity	139,202		917,127		297,882			(1,215,009		)	139,202
Total liabilities and shareholders' equity	$	734,424	$	975,249	$	528,018		$	(1,215,622	)	$	1,022,069

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended June 29, 2013



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	—		$	89,817		$	206,389		$	(4,668	)	$	291,538
Cost of goods sold	(11		)	(74,870		)	(170,935		)	4,668			(241,148		)
Gross profit	(11		)	14,947			35,454			—			50,390
Selling, general and administrative expenses	(14,331		)	(6,004		)	(19,036		)	—			(39,371		)
Special charges, net	(471		)	(103		)	(1,176		)	—			(1,750		)
Other operating, net	16			(145		)	(835		)	—			(964		)
Operating income (loss)	(14,797		)	8,695			14,407			—			8,305
Other income (expense):
Interest expense	(12,246		)	3,086			(3,163		)	—			(12,323		)
Intercompany royalty and technical service fees	1,428			1,697			(3,125		)	—			—
Foreign currency and other, net	2			(150		)	(752		)	—			(900		)
Equity in earnings of subsidiaries	15,630			1,872			—			(17,502		)	—
Income (loss) before income taxes	(9,983		)	15,200			7,367			(17,502		)	(4,918		)
Income tax (provision) benefit	2,077			458			(5,523		)	—			(2,988		)
Net income (loss)	$	(7,906	)	$	15,658		$	1,844		$	(17,502	)	$	(7,906	)
Comprehensive income (loss)	$	(5,477	)	$	8,930		$	(44	)	$	(8,886	)	$	(5,477	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended June 30, 2012



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, net	10			118			31			—			159
Operating income (loss)	(12,812		)	3,657			11,800			—			2,645
Other income (expense):
Interest expense	(7,708		)	6,708			(11,738		)	—			(12,738		)
Intercompany royalty and technical service fees	1,438			1,631			(3,069		)	—			—
Foreign currency and other, net	32			402			(3,594		)	—			(3,160		)
Equity in earnings of subsidiaries	3,226			(7,726		)	—			4,500			—
Income (loss) before income taxes	(15,824		)	4,672			(6,601		)	4,500			(13,253		)
Income tax (provision) benefit	3,730			(1,373		)	(1,198		)	—			1,159
Net income (loss)	$	(12,094	)	$	3,299		$	(7,799	)	$	4,500		$	(12,094	)
Comprehensive income (loss)	$	(22,433	)	$	(7,150	)	$	(12,521	)	$	19,671		$	(22,433	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Six Months Ended June 29, 2013



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	—		$	182,829		$	405,918		$	(10,127	)	$	578,620
Cost of goods sold	(36		)	(156,714		)	(335,741		)	10,127			(482,364		)
Gross profit	(36		)	26,115			70,177			—			96,256
Selling, general and administrative expenses	(23,975		)	(11,764		)	(37,974		)	—			(73,713		)
Special charges, net	(1,826		)	(139		)	(1,589		)	—			(3,554		)
Other operating, net	18			(222		)	(1,100		)	—			(1,304		)
Operating income (loss)	(25,819		)	13,990			29,514			—			17,685
Other income (expense):
Interest expense	(22,474		)	6,187			(8,120		)	—			(24,407		)
Intercompany royalty and technical service fees	2,756			3,304			(6,060		)	—			—
Foreign currency and other, net	—			(247		)	(2,073		)	—			(2,320		)
Equity in earnings of subsidiaries	27,155			5,690			—			(32,845		)	—
Income (loss) before income taxes	(18,382		)	28,924			13,261			(32,845		)	(9,042		)
Income tax (provision) benefit	4,249			(1,687		)	(7,653		)	—			(5,091		)
Net income (loss)	$	(14,133	)	$	27,237		$	5,608		$	(32,845	)	$	(14,133	)
Comprehensive income (loss)	$	(15,380	)	$	25,035		$	5,339		$	(30,374	)	$	(15,380	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Six Months Ended June 30, 2012



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, net	9			220			290			—			519
Operating income (loss)	(23,564		)	10,594			32,613			—			19,643
Other income (expense):
Interest expense	(18,983		)	10,023			(16,627		)	—			(25,587		)
Intercompany royalty and technical service fees	2,929			3,442			(6,371		)	—			—
Foreign currency and other, net	—			239			(3,336		)	—			(3,097		)
Equity in earnings of subsidiaries	21,391			1,424			—			(22,815		)	—
Income (loss) before income taxes	(18,227		)	25,722			6,279			(22,815		)	(9,041		)
Income tax (provision) benefit	5,868			(4,205		)	(4,981		)	—			(3,318		)
Net income (loss)	$	(12,359	)	$	21,517		$	1,298		$	(22,815	)	$	(12,359	)
Comprehensive income (loss)	$	(17,875	)	$	17,229		$	(293	)	$	(16,936	)	$	(17,875	)

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 29, 2013



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(10,239	)	$	22,547		$	(13,926	)	$	—		$	(1,618	)
Investing activities:
Purchases of property, plant and equipment	(23,207		)	(1,658		)	(1,635		)	—			(26,500		)
Proceeds from the sale of assets	—			—			75			—			75
Acquisition of intangibles and other	(135		)	—			—			—			(135		)
Intercompany investing activities, net	5,766			(28,500		)	(4,000		)	26,734			—
Net cash provided by (used in) investing activities	(17,576		)	(30,158		)	(5,560		)	26,734			(26,560		)
Financing activities:
Proceeds from long-term borrowings	—			—			14,177			—			14,177
Proceeds from short-term borrowings	1,879			—			—			—			1,879
Repayment of long-term borrowings	(65		)	—			(3,252		)	—			(3,317		)
Repayment of short-term borrowings	(1,554		)	—			—			—			(1,554		)
Issuance of common stock	(232		)	—			—			—			(232		)
Intercompany financing activities, net	28,000			(1,766		)	500			(26,734		)	—
Net cash provided by (used in) financing activities	28,028			(1,766		)	11,425			(26,734		)	10,953
Effect of exchange rate changes on cash	—			—			(183		)	—			(183		)
Net change in cash and cash equivalents	213			(9,377		)	(8,244		)	—			(17,408		)
Cash and cash equivalents at beginning of period	486			28,285			69,108			—			97,879
Cash and cash equivalents at end of period	$	699		$	18,908		$	60,864		$	—		$	80,471

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 30, 2012



In thousands	PGI (Issuer)			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(58,518	)	$	44,082		$	52,103		$	—		$	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		)
Intercompany investing activities, net	30,198			(30,554		)	(19,758		)	20,114			—
Net cash provided by (used in) investing activities	31,344			(30,416		)	(49,125		)	20,114			(28,083		)
Financing activities:
Proceeds from long-term borrowings	—			—			25			—			25
Proceeds from short-term borrowings	1,943			—			3,000			—			4,943
Repayment of long-term borrowings	(44		)	—			(2,306		)	—			(2,350		)
Repayment of short-term borrowings	(1,233		)	—			(5,000		)	—			(6,233		)
Intercompany financing activities, net	33,370			(10,440		)	(2,816		)	(20,114		)	—
Net cash provided by (used in) financing activities	34,036			(10,440		)	(7,097		)	(20,114		)	(3,615		)
Effect of exchange rate changes on cash	—			—			(641		)	—			(641		)
Net change 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