| Condensed Consolidating Balance Sheet |
Condensed Consolidating Balance Sheet As of March 29, 2014
| | | | | | | | | | | | | | | | | | | | | In thousands | PGI (Issuer) | | Guarantors | | Non-Guarantors | | Eliminations | | Consolidated | ASSETS | | | | | | | | | | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 764 |
| | $ | 10,342 |
| | $ | 48,534 |
| | $ | — |
| | $ | 59,640 |
| Accounts receivable, net | — |
| | 46,349 |
| | 166,952 |
| | — |
| | 213,301 |
| Inventories, net | (199 | ) | | 46,210 |
| | 106,271 |
| | — |
| | 152,282 |
| Deferred income taxes | 385 |
| | 2,438 |
| | 3,023 |
| | (2,823 | ) | | 3,023 |
| Other current assets | 15,620 |
| | 14,499 |
| | 46,508 |
| | — |
| | 76,627 |
| Total current assets | 16,570 |
| | 119,838 |
| | 371,288 |
| | (2,823 | ) | | 504,873 |
| Property, plant and equipment, net | 3,068 |
| | 175,713 |
| | 432,235 |
| | — |
| | 611,016 |
| Goodwill | — |
| | 43,161 |
| | 77,144 |
| | — |
| | 120,305 |
| Intangible assets, net | 30,270 |
| | 110,619 |
| | 23,516 |
| | — |
| | 164,405 |
| Net investment in and advances to (from) subsidiaries | 975,032 |
| | 623,322 |
| | (356,982 | ) | | (1,241,372 | ) | | — |
| Deferred income taxes | — |
| | — |
| | 2,499 |
| | — |
| | 2,499 |
| Other noncurrent assets | 295 |
| | 8,199 |
| | 18,445 |
| | — |
| | 26,939 |
| Total assets | $ | 1,025,235 |
| | $ | 1,080,852 |
| | $ | 568,145 |
| | $ | (1,244,195 | ) | | $ | 1,430,037 |
| LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities: | | | | | | | | | | Short-term borrowings | $ | 956 |
| | $ | — |
| | $ | 7,191 |
| | $ | — |
| | $ | 8,147 |
| Accounts payable and accrued liabilities | 28,869 |
| | 63,660 |
| | 209,565 |
| | — |
| | 302,094 |
| Income taxes payable | 500 |
| | — |
| | 3,071 |
| | — |
| | 3,571 |
| Deferred income taxes | — |
| | — |
| | 48 |
| | 1,147 |
| | 1,195 |
| Current portion of long-term debt | 3,015 |
| | — |
| | 9,318 |
| | — |
| | 12,333 |
| Total current liabilities | 33,340 |
| | 63,660 |
| | 229,193 |
| | 1,147 |
| | 327,340 |
| Long-term debt | 850,822 |
| | — |
| | 27,834 |
| | — |
| | 878,656 |
| Deferred income taxes | 971 |
| | 8,054 |
| | 18,575 |
| | (3,968 | ) | | 23,632 |
| Other noncurrent liabilities | 355 |
| | 30,810 |
| | 28,644 |
| | — |
| | 59,809 |
| Total liabilities | 885,488 |
| | 102,524 |
| | 304,246 |
| | (2,821 | ) | | 1,289,437 |
| Common stock | — |
| | — |
| | 16,966 |
| | (16,966 | ) | | — |
| Polymer Group, Inc. shareholders’ equity | 139,747 |
| | 978,328 |
| | 246,080 |
| | (1,224,408 | ) | | 139,747 |
| Noncontrolling interests | — |
| | — |
| | 853 |
| | — |
| | 853 |
| Total equity | 139,747 |
| | 978,328 |
| | 263,899 |
| | (1,241,374 | ) | | 140,600 |
| Total liabilities and equity | $ | 1,025,235 |
| | $ | 1,080,852 |
| | $ | 568,145 |
| | $ | (1,244,195 | ) | | $ | 1,430,037 |
|
Condensed Consolidating Balance Sheet As of December 28, 2013 | | | | | | | | | | | | | | | | | | | | | In thousands | PGI (Issuer) | | Guarantors | | Non-Guarantors | | Eliminations | | Consolidated | ASSETS | | | | | | | | | | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 2,068 |
| | $ | 13,103 |
| | $ | 70,893 |
| | $ | — |
| | $ | 86,064 |
| Accounts receivable, net | — |
| | 46,828 |
| | 147,999 |
| | — |
| | 194,827 |
| Inventories, net | — |
| | 46,595 |
| | 109,770 |
| | — |
| | 156,365 |
| Deferred income taxes | 385 |
| | 2,438 |
| | 2,318 |
| | (2,823 | ) | | 2,318 |
| Other current assets | 1,887 |
| | 12,696 |
| | 44,513 |
| | — |
| | 59,096 |
| Total current assets | 4,340 |
| | 121,660 |
| | 375,493 |
| | (2,823 | ) | | 498,670 |
| Property, plant and equipment, net | 2,756 |
| | 176,380 |
| | 444,143 |
| | — |
| | 623,279 |
| Goodwill | — |
| | 43,182 |
| | 76,961 |
| | — |
| | 120,143 |
| Intangible assets, net | 31,525 |
| | 112,026 |
| | 24,628 |
| | — |
| | 168,179 |
| Net investment in and advances to (from) subsidiaries | 1,000,551 |
| | 615,314 |
| | (363,414 | ) | | (1,252,451 | ) | | — |
| Deferred income taxes | — |
| | — |
| | 2,582 |
| | — |
| | 2,582 |
| Other noncurrent assets | 298 |
| | 8,869 |
| | 16,885 |
| | — |
| | 26,052 |
| Total assets | $ | 1,039,470 |
| | $ | 1,077,431 |
| | $ | 577,278 |
| | $ | (1,255,274 | ) | | $ | 1,438,905 |
| LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities: | | | | | | | | | | Short-term borrowings | $ | 410 |
| | $ | — |
| | $ | 2,062 |
| | $ | — |
| | $ | 2,472 |
| Accounts payable and accrued liabilities | 36,510 |
| | 61,950 |
| | 209,201 |
| | — |
| | 307,661 |
| Income taxes payable | 369 |
| | — |
| | 3,244 |
| | — |
| | 3,613 |
| Deferred income taxes | — |
| | — |
| | 375 |
| | 1,148 |
| | 1,523 |
| Current portion of long-term debt | 3,039 |
| | — |
| | 10,758 |
| | — |
| | 13,797 |
| Total current liabilities | 40,328 |
| | 61,950 |
| | 225,640 |
| | 1,148 |
| | 329,066 |
| Long-term debt | 850,767 |
| | — |
| | 29,632 |
| | — |
| | 880,399 |
| Deferred income taxes | 974 |
| | 8,053 |
| | 16,104 |
| | (3,970 | ) | | 21,161 |
| Other noncurrent liabilities | 1,810 |
| | 31,372 |
| | 28,663 |
| | — |
| | 61,845 |
| Total liabilities | 893,879 |
| | 101,375 |
| | 300,039 |
| | (2,822 | ) | | 1,292,471 |
| Common stock | — |
| | — |
| | 16,966 |
| | (16,966 | ) | | — |
| Polymer Group, Inc. shareholders’ equity | 145,591 |
| | 976,056 |
| | 259,430 |
| | (1,235,486 | ) | | 145,591 |
| Noncontrolling interests | — |
| | — |
| | 843 |
| | — |
| | 843 |
| Total equity | 145,591 |
| | 976,056 |
| | 277,239 |
| | (1,252,452 | ) | | 146,434 |
| Total liabilities and equity | $ | 1,039,470 |
| | $ | 1,077,431 |
| | $ | 577,278 |
| | $ | (1,255,274 | ) | | $ | 1,438,905 |
|
|
| Condensed Consolidating Statement of Operations |
Condensed Consolidating Statement of Comprehensive Income (Loss) For the Three Months Ended March 29, 2014 | | | | | | | | | | | | | | | | | | | | | In thousands | PGI (Issuer) | | Guarantors | | Non-Guarantors | | Eliminations | | Consolidated | Net sales | $ | — |
| | $ | 148,896 |
| | $ | 286,667 |
| | $ | (12,979 | ) | | $ | 422,584 |
| Cost of goods sold | (37 | ) | | (122,419 | ) | | (238,471 | ) | | 12,979 |
| | (347,948 | ) | Gross profit | (37 | ) | | 26,477 |
| | 48,196 |
| | — |
| | 74,636 |
| Selling, general and administrative expenses | (10,930 | ) | | (14,036 | ) | | (31,053 | ) | | — |
| | (56,019 | ) | Special charges, net | (3,965 | ) | | (532 | ) | | (4,214 | ) | | — |
| | (8,711 | ) | Other operating, net | 12 |
| | (212 | ) | | (869 | ) | | — |
| | (1,069 | ) | Operating income (loss) | (14,920 | ) | | 11,697 |
| | 12,060 |
| | — |
| | 8,837 |
| Other income (expense): | | | | | | | | | | Interest expense | (19,931 | ) | | 7,083 |
| | (5,058 | ) | | — |
| | (17,906 | ) | Intercompany royalty and technical service fees | 2,695 |
| | 1,653 |
| | (4,348 | ) | | — |
| | — |
| Foreign currency and other, net | 10,800 |
| | 553 |
| | (6,394 | ) | | — |
| | 4,959 |
| Equity in earnings of subsidiaries | 7,971 |
| | (8,165 | ) | | — |
| | 194 |
| | — |
| Income (loss) before income taxes | (13,385 | ) | | 12,821 |
| | (3,740 | ) | | 194 |
| | (4,110 | ) | Income tax (provision) benefit | 3,591 |
| | (4,914 | ) | | (4,377 | ) | | — |
| | (5,700 | ) | Net income (loss) | (9,794 | ) | | 7,907 |
| | (8,117 | ) | | 194 |
| | (9,810 | ) | Less: Earnings attributable to noncontrolling interests | — |
| | — |
| | (16 | ) | | — |
| | (16 | ) | Net income (loss) attributable to Polymer Group, Inc. | $ | (9,794 | ) | | $ | 7,907 |
| | $ | (8,101 | ) | | $ | 194 |
| | $ | (9,794 | ) | Comprehensive income (loss) attributable to Polymer Group, Inc. | $ | (8,107 | ) | | $ | 9,405 |
| | $ | (6,057 | ) | | $ | (3,348 | ) | | $ | (8,107 | ) |
Condensed Consolidating Statement of Comprehensive Income (Loss) For the Three Months Ended March 30, 2013 | | | | | | | | | | | | | | | | | | | | | In thousands | PGI (Issuer) | | Guarantors | | Non-Guarantors | | Eliminations | | Consolidated | Net sales | $ | — |
| | $ | 93,012 |
| | $ | 199,529 |
| | $ | (5,459 | ) | | $ | 287,082 |
| Cost of goods sold | (25 | ) | | (81,846 | ) | | (164,804 | ) | | 5,459 |
| | (241,216 | ) | Gross profit | (25 | ) | | 11,166 |
| | 34,725 |
| | — |
| | 45,866 |
| Selling, general and administrative expenses | (9,644 | ) | | (5,760 | ) | | (18,938 | ) | | — |
| | (34,342 | ) | Special charges, net | (1,354 | ) | | (37 | ) | | (413 | ) | | — |
| | (1,804 | ) | Other operating, net | 2 |
| | (76 | ) | | (266 | ) | | — |
| | (340 | ) | Operating income (loss) | (11,021 | ) | | 5,293 |
| | 15,108 |
| | — |
| | 9,380 |
| Other income (expense): | | | | | | | | | | Interest expense | (10,228 | ) | | 3,101 |
| | (4,957 | ) | | — |
| | (12,084 | ) | Intercompany royalty and technical service fees | 1,327 |
| | 1,607 |
| | (2,934 | ) | | — |
| | — |
| Foreign currency and other, net | (2 | ) | | (97 | ) | | (1,321 | ) | | — |
| | (1,420 | ) | Equity in earnings of subsidiaries | 11,524 |
| | 3,817 |
| | — |
| | (15,341 | ) | | — |
| Income (loss) before income taxes | (8,400 | ) | | 13,721 |
| | 5,896 |
| | (15,341 | ) | | (4,124 | ) | Income tax (provision) benefit | 2,173 |
| | (2,145 | ) | | (2,131 | ) | | — |
| | (2,103 | ) | Net income (loss) | $ | (6,227 | ) | | $ | 11,576 |
| | $ | 3,765 |
| | $ | (15,341 | ) | | $ | (6,227 | ) | Comprehensive income (loss) attributable to Polymer Group, Inc. | $ | (9,903 | ) | | $ | 16,102 |
| | $ | 5,384 |
| | $ | (21,486 | ) | | $ | (9,903 | ) |
|
| Condensed Consolidating Statement of Cash Flows |
Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 29, 2014 | | | | | | | | | | | | | | | | | | | | | In thousands | PGI (Issuer) | | Guarantors | | Non-Guarantors | | Eliminations | | Consolidated | Net cash provided by (used in) operating activities | $ | (35,352 | ) | | $ | 30,624 |
| | $ | (9,861 | ) | | $ | — |
| | $ | (14,589 | ) | Investing activities: | | | | | | | | | | Purchases of property, plant and equipment | (746 | ) | | (5,795 | ) | | (7,574 | ) | | — |
| | (14,115 | ) | Acquisition of intangibles and other | (57 | ) | | — |
| | — |
| | — |
| | (57 | ) | Intercompany investing activities, net | 11,035 |
| | (16,505 | ) | | 50 |
| | 5,420 |
| | — |
| Net cash provided by (used in) investing activities | 10,232 |
| | (22,300 | ) | | (7,524 | ) | | 5,420 |
| | (14,172 | ) | Financing activities: | | | | | | | | | | Proceeds from long-term borrowings | 3,000 |
| | — |
| | 152 |
| | — |
| | 3,152 |
| Proceeds from short-term borrowings | 1,024 |
| | — |
| | 6,582 |
| | — |
| | 7,606 |
| Repayment of long-term borrowings | (3,898 | ) | | — |
| | (2,062 | ) | | — |
| | (5,960 | ) | Repayment of short-term borrowings | (478 | ) | | — |
| | (1,471 | ) | | — |
| | (1,949 | ) | Intercompany financing activities, net | 24,168 |
| | (11,085 | ) | | (7,663 | ) | | (5,420 | ) | | — |
| Net cash provided by (used in) financing activities | 23,816 |
| | (11,085 | ) | | (4,462 | ) | | (5,420 | ) | | 2,849 |
| Effect of exchange rate changes on cash | — |
| | — |
| | (512 | ) | | — |
| | (512 | ) | Net change in cash and cash equivalents | (1,304 | ) | | (2,761 | ) | | (22,359 | ) | | — |
| | (26,424 | ) | Cash and cash equivalents at beginning of period | 2,068 |
| | 13,103 |
| | 70,893 |
| | — |
| | 86,064 |
| Cash and cash equivalents at end of period | $ | 764 |
| | $ | 10,342 |
| | $ | 48,534 |
| | $ | — |
| | $ | 59,640 |
|
Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 30, 2013 | | | | | | | | | | | | | | | | | | | | | In thousands | PGI (Issuer) | | Guarantors | | Non-Guarantors | | Eliminations | | Consolidated | Net cash provided by (used in) operating activities | $ | (15,118 | ) | | $ | 16,397 |
| | $ | (15,990 | ) | | $ | — |
| | $ | (14,711 | ) | Investing activities: | | | | | | | | | | Purchases of property, plant and equipment | (10,592 | ) | | (682 | ) | | (3,043 | ) | | — |
| | (14,317 | ) | Proceeds from the sale of assets | — |
| | — |
| | 11 |
| | — |
| | 11 |
| Acquisition of intangibles and other | (53 | ) | | — |
| | — |
| | — |
| | (53 | ) | Intercompany investing activities, net | 5,766 |
| | (23,000 | ) | | — |
| | 17,234 |
| | — |
| Net cash provided by (used in) investing activities | (4,879 | ) | | (23,682 | ) | | (3,032 | ) | | 17,234 |
| | (14,359 | ) | Financing activities: | | | | | | | | | | Proceeds from long-term borrowings | — |
| | — |
| | 6,666 |
| | — |
| | 6,666 |
| Proceeds from short-term borrowings | 1,446 |
| | — |
| | — |
| | — |
| | 1,446 |
| Repayment of long-term borrowings | (27 | ) | | — |
| | (885 | ) | | — |
| | (912 | ) | Repayment of short-term borrowings | (848 | ) | | — |
| | — |
| | — |
| | (848 | ) | Intercompany financing activities, net | 23,000 |
| | (5,766 | ) | | — |
| | (17,234 | ) | | — |
| Net cash provided by (used in) financing activities | 23,571 |
| | (5,766 | ) | | 5,781 |
| | (17,234 | ) | | 6,352 |
| Effect of exchange rate changes on cash | — |
| | — |
| | (534 | ) | | — |
| | (534 | ) | Net change in cash and cash equivalents | 3,574 |
| | (13,051 | ) | | (13,775 | ) | | — |
| | (23,252 | ) | Cash and cash equivalents at beginning of period | 486 |
| | 28,285 |
| | 69,108 |
| | — |
| | 97,879 |
| Cash and cash equivalents at end of period | $ | 4,060 |
| | $ | 15,234 |
| | $ | 55,333 |
| | $ | — |
| | $ | 74,627 |
|
|