Financial Guarantees and Condensed Consolidating Financial Statements (Tables)

Condensed Consolidating Balance Sheet

As of June 28, 2014



In thousands	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
ASSETS	RESTATED												RESTATED
Current Assets:
Cash and cash equivalents	$	296		$	121,459		$	89,441		$	—		$	211,196
Accounts receivable, net	—			46,040			211,571			—			257,611
Inventories, net	(789		)	48,683			141,771			—			189,665
Deferred income taxes	385			2,439			5,634			(2,823		)	5,635
Other current assets	17,342			12,165			80,567			—			110,074
Total current assets	17,234			230,786			528,984			(2,823		)	774,181
Property, plant and equipment, net	3,636			209,255			731,124			—			944,015
Goodwill	—			54,417			196,005			—			250,422
Intangible assets, net	39,348			113,975			38,236			—			191,559
Net investment in and advances to (from) subsidiaries	1,572,311			530,756			(811,791		)	(1,291,276		)	—
Deferred income taxes	—			—			5,116			—			5,116
Other noncurrent assets	291			8,976			27,992			—			37,259
Total assets	$	1,632,820		$	1,148,165		$	715,666		$	(1,294,099	)	$	2,202,552
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	719		$	—		$	13,351		$	—		$	14,070
Accounts payable and accrued liabilities	42,335			57,952			236,087			—			336,374
Income taxes payable	399			145			606			—			1,150
Deferred income taxes	—			(148		)	518			1,148			1,518
Current portion of long-term debt	62,090			—			48,236			—			110,326
Total current liabilities	105,543			57,949			298,798			1,148			463,438
Long-term debt	1,311,050			—			63,446			—			1,374,496
Deferred income taxes	973			12,737			26,531			(3,971		)	36,270
Other noncurrent liabilities	407			27,179			85,208			—			112,794
Total liabilities	1,417,973			97,865			473,983			(2,823		)	1,986,998
Redeemable noncontrolling interest	100,467			—			—			—			100,467
Common stock	—			—			16,966			(16,966		)	—
AVINTIV shareholders’ equity	114,380			1,050,300			224,010			(1,274,310		)	114,380
Noncontrolling interest	—			—			707			—			707
Total equity	114,380			1,050,300			241,683			(1,291,276		)	115,087
Total liabilities and equity	$	1,632,820		$	1,148,165		$	715,666		$	(1,294,099	)	$	2,202,552

Condensed Consolidating Balance Sheet

As of December 28, 2013



In thousands	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	—		46,428		109,646			—			156,074
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		121,493		375,369			(2,823		)	498,379
Property, plant and equipment, net	2,756		207,256		442,768			—			652,780
Goodwill	—		54,683		60,645			—			115,328
Intangible assets, net	31,525		125,146		12,728			—			169,399
Net investment in and advances to (from) subsidiaries	1,013,856		615,314		(363,414		)	(1,265,756		)	—
Deferred income taxes	—		—		2,582			—			2,582
Other noncurrent assets	298		8,869		16,885			—			26,052
Total assets	$	1,052,775	$	1,132,761	$	547,563		$	(1,268,579	)	$	1,464,520
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	$	410	$	—	$	2,062		$	—		$	2,472
Accounts payable and accrued liabilities	36,510		61,950		209,271			—			307,731
Income taxes payable	369		—		3,244			—			3,613
Deferred income taxes	—		—		194			1,148			1,342
Current portion of long-term debt	3,039		—		10,758			—			13,797
Total current liabilities	40,328		61,950		225,529			1,148			328,955
Long-term debt	850,767		—		29,632			—			880,399
Deferred income taxes	974		12,543		23,689			(3,970		)	33,236
Other noncurrent liabilities	1,810		31,718		28,663			—			62,191
Total liabilities	893,879		106,211		307,513			(2,822		)	1,304,781
Common stock	—		—		16,966			(16,966		)	—
AVINTIV shareholders’ equity	158,896		1,026,550		222,241			(1,248,791		)	158,896
Noncontrolling interest	—		—		843			—			843
Total equity	158,896		1,026,550		240,050			(1,265,757		)	159,739
Total liabilities and equity	$	1,052,775	$	1,132,761	$	547,563		$	(1,268,579	)	$	1,464,520

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended June 28, 2014



In thousands	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	—		$	147,350		$	308,021		$	(15,473	)	$	439,898
Cost of goods sold	(93		)	(114,025		)	(254,667		)	15,473			(353,312		)
Gross profit	(93		)	33,325			53,354			—			86,586
Selling, general and administrative expenses	(12,101		)	(14,909		)	(37,159		)	—			(64,169		)
Special charges, net	(14,972		)	(1,681		)	(7,611		)	—			(24,264		)
Other operating, net	—			509			(4,364		)	—			(3,855		)
Operating income (loss)	(27,166		)	17,244			4,220			—			(5,702		)
Other income (expense):
Interest expense	(13,487		)	(482		)	(6,948		)	—			(20,917		)
Debt modification and extinguishment costs	(10,738		)	—			—			—			(10,738		)
Intercompany royalty and technical service fees	(9,893		)	1,140			8,753			—			—
Foreign currency and other, net	12,117			(678		)	(1,436		)	—			10,003
Equity in earnings of subsidiaries	26,163			(1,712		)	—			(24,451		)	—
Income (loss) before income taxes	(23,004		)	15,512			4,589			(24,451		)	(27,354		)
Income tax (provision) benefit	3,340			(671		)	2,744			—			5,413
Net income (loss)	(19,664		)	14,841			7,333			(24,451		)	(21,941		)
Less: Earnings attributable to noncontrolling interest and redeemable noncontrolling interest	—			—			(2,277		)	—			(2,277		)
Net income (loss) attributable to AVINTIV	$	(19,664	)	$	14,841		$	9,610		$	(24,451	)	$	(19,664	)
Comprehensive income (loss) attributable to AVINTIV	$	(17,661	)	$	17,046		$	12,561		$	(29,607	)	$	(17,661	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended June 29, 2013



In thousands	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) attributable to AVINTIV	$	(5,477	)	$	8,930		$	(44	)	$	(8,886	)	$	(5,477	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Six Months Ended June 28, 2014



In thousands	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	—		$	296,246		$	594,687		$	(28,451	)	$	862,482
Cost of goods sold	(130		)	(236,612		)	(493,140		)	28,451			(701,431		)
Gross profit	(130		)	59,634			101,547			—			161,051
Selling, general and administrative expenses	(23,030		)	(28,460		)	(68,213		)	—			(119,703		)
Special charges, net	(18,937		)	(2,214		)	(11,824		)	—			(32,975		)
Other operating, net	11			299			(5,234		)	—			(4,924		)
Operating income (loss)	(42,086		)	29,259			16,276			—			3,449
Other income (expense):
Interest expense	(33,418		)	6,601			(12,006		)	—			(38,823		)
Debt modification and extinguishment costs	(10,738		)	—			—			—			(10,738		)
Intercompany royalty and technical service fees	(7,198		)	2,793			4,405			—			—
Foreign currency and other, net	22,916			(125		)	(7,829		)	—			14,962
Equity in earnings of subsidiaries	34,449			(10,138		)	—			(24,311		)	—
Income (loss) before income taxes	(36,075		)	28,390			846			(24,311		)	(31,150		)
Income tax (provision) benefit	6,931			(5,586		)	(1,632		)	—			(287		)
Net income (loss)	(29,144		)	22,804			(786		)	(24,311		)	(31,437		)
Less: Earnings attributable to noncontrolling interest and redeemable noncontrolling interest	—			—			(2,293		)	—			(2,293		)
Net income (loss) attributable to AVINTIV	$	(29,144	)	$	22,804		$	1,507		$	(24,311	)	$	(29,144	)
Comprehensive income (loss) attributable to AVINTIV	$	(25,454	)	$	26,507		$	6,502		$	(33,009	)	$	(25,454	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Six Months Ended June 29, 2013



In thousands	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) attributable to AVINTIV	$	(15,380	)	$	25,035		$	5,339		$	(30,374	)	$	(15,380	)

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 28, 2014



In thousands	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	195,187		$	148,994		$	(333,947	)	$	—		$	10,234
Investing activities:
Purchases of property, plant and equipment	(1,703		)	(16,422		)	(15,675		)	—			(33,800		)
Proceeds from the sale of assets	—			—			47			—			47
Acquisition of intangibles and other	(124		)	—			—			—			(124		)
Acquisitions, net of cash acquired	(356,281		)	—			—			—			(356,281		)
Intercompany investing activities, net	(372,158		)	(399,794		)	(6,450		)	778,402			—
Net cash provided by (used in) investing activities	(730,266		)	(416,216		)	(22,078		)	778,402			(390,158		)
Financing activities:
Proceeds from long-term borrowings	523,000			—			152			—			523,152
Proceeds from short-term borrowings	1,265			—			16,156			—			17,421
Repayment of long-term borrowings	(3,808		)	—			(4,049		)	—			(7,857		)
Repayment of short-term borrowings	(956		)	—			(4,893		)	—			(5,849		)
Loan acquisition costs	(21,312		)	—			—			—			(21,312		)
Intercompany financing activities, net	35,118			375,578			367,706			(778,402		)	—
Net cash provided by (used in) financing activities	533,307			375,578			375,072			(778,402		)	505,555
Effect of exchange rate changes on cash	—			—			(499		)	—			(499		)
Net change in cash and cash equivalents	(1,772		)	108,356			18,548			—			125,132
Cash and cash equivalents at beginning of period	2,068			13,103			70,893			—			86,064
Cash and cash equivalents at end of period	$	296		$	121,459		$	89,441		$	—		$	211,196

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 29, 2013



In thousands	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:
Issuance of common stock	(232		)	—			—			—			(232		)
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		)
Loan acquisition costs	—			—			—			—			—
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