10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 29, 2013

OR

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For The Transition Period From            To             .

Commission file numbers: 333-82084-01

                                           333-82084

PAPERWEIGHT DEVELOPMENT CORP.	APPVION, INC.
(Exact Name of Registrant as Specified in Its Charter)	(Exact Name of Registrant as Specified in Its Charter)
Wisconsin	Delaware
(State or Other Jurisdiction of Incorporation or Organization)	(State or Other Jurisdiction of Incorporation or Organization)
39-2014992	36-2556469
(I.R.S. Employer Identification No.)	(I.R.S. Employer Identification No.)
825 East Wisconsin Avenue, P.O. Box 359, Appleton, Wisconsin	54912-0359
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (920) 734-9841

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether each registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x   No  ¨

Indicate by check mark whether either of the registrants is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one).

Large Accelerated filer  ¨    Accelerated filer  ¨    Non-accelerated filer  x    Smaller reporting company  (Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):    Yes  ¨    No  x

As of November 1, 2013, 8,291,671 shares of Paperweight Development Corp. common stock, $.01 par value, were outstanding. There is no trading market for the common stock of Paperweight Development Corp. As of November 1, 2013, 100 shares of Appvion, Inc.’s common stock, $100.00 par value, were outstanding. There is no trading market for the common stock of Appvion, Inc. No shares of Paperweight Development Corp. or Appvion, Inc. were held by non-affiliates.

Documents incorporated by reference: None.

Appvion, Inc. meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format.

1

INDEX

			Page Number
PART I	FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)
	a)	Condensed Consolidated Balance Sheets
		Paperweight Development Corp. and Subsidiaries	3
		Appvion, Inc. and Subsidiaries	4
	b)	Condensed Consolidated Statements of Comprehensive Income (Loss)
		Paperweight Development Corp. and Subsidiaries	5
		Appvion, Inc. and Subsidiaries	6
	c)	Condensed Consolidated Statements of Cash Flows
		Paperweight Development Corp. and Subsidiaries	7
		Appvion, Inc. and Subsidiaries	8
	d)	Condensed Consolidated Statements of Redeemable Common Stock, Accumulated Deficit and Accumulated Other Comprehensive Income
		Paperweight Development Corp. and Subsidiaries	9
	e)	Condensed Consolidated Statements of Equity
		Appvion, Inc. and Subsidiaries	10
	f)	Notes to Condensed Consolidated Financial Statements	11
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		37
Item 3	Quantitative and Qualitative Disclosures About Market Risk		45
Item 4	Controls and Procedures		45
PART II	OTHER INFORMATION
Item 1	Legal Proceedings		46
Item 1A	Risk Factors		46
Item 6	Exhibits		50
Signatures			51

2

PART 1 – FINANCIAL INFORMATION

Item 1 – Financial Statements (unaudited)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars in thousands, except share data)
	September 29, 2013		December 29, 2012
ASSETS
Current assets
Cash and cash equivalents	$	7,016	$	1,851
Accounts receivable, less allowance for doubtful accounts of $1,041 and $1,077, respectively		83,733		92,680
Inventories		95,503		94,349
Other current assets		70,289		70,620
Total current assets		256,541		259,500
Property, plant and equipment, net of accumulated depreciation of $626,747 and $607,006, respectively		243,108		243,265
Intangible assets, net		42,125		43,839
Other assets		17,152		14,486
Total assets	$	558,926	$	561,090
LIABILITIES, REDEEMABLE COMMON STOCK,
ACCUMULATED DEFICIT AND
ACCUMULATED OTHER COMPREHENSIVE INCOME
Current liabilities
Current portion of long-term debt	$	50,070	$	3,975
Accounts payable		61,769		68,600
Accrued interest		12,503		2,467
Other accrued liabilities		102,150		119,635
Total current liabilities		226,492		194,677
Long-term debt		508,192		511,624
Postretirement benefits other than pension		36,502		38,440
Accrued pension		124,609		137,081
Other long-term liabilities		35,716		32,165
Commitments and contingencies  (Note 12)		—		—
Redeemable common stock, $0.01 par value,
shares authorized:  30,000,000,
shares issued and outstanding: 8,298,936 and
8,730,118, respectively		70,853		81,704
Accumulated deficit		(446,999)		(439,923)
Accumulated other comprehensive income		3,561		5,322
Total liabilities, redeemable common stock, accumulated
deficit and accumulated other comprehensive income	$	558,926	$	561,090

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

APPVION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars in thousands, except share data)
	September 29, 2013		December 29, 2012
ASSETS
Current assets
Cash and cash equivalents	$	7,016	$	1,851
Accounts receivable, less allowance for doubtful accounts of $1,041 and $1,077, respectively		83,733		92,680
Inventories		95,503		94,349
Other current assets		70,289		70,620
Total current assets		256,541		259,500
Property, plant and equipment, net of accumulated depreciation of $626,747 and $607,006, respectively		243,108		243,265
Intangible assets, net		42,125		43,839
Other assets		17,140		14,474
Total assets	$	558,914	$	561,078
LIABILITIES AND TOTAL EQUITY
Current liabilities
Current portion of long-term debt	$	50,070	$	3,975
Accounts payable		61,769		68,600
Accrued interest		12,503		2,467
Other accrued liabilities		102,150		119,635
Total current liabilities		226,492		194,677
Long-term debt		508,192		511,624
Postretirement benefits other than pension		36,502		38,440
Accrued pension		124,609		137,081
Other long-term liabilities		35,716		32,165
Total liabilities		931,511		913,987
Commitments and contingencies  (Note 12)		—		—
Common stock, $100.00 par value, 130,000 shares authorized, 100 shares issued and outstanding		10,500		10,500
Paid-in capital		623,305		623,305
Due from parent		(244,895)		(237,257)
Accumulated deficit		(765,068)		(754,779)
Accumulated other comprehensive income		3,561		5,322
Total equity		(372,597)		(352,909)
Total liabilities and equity	$	558,914	$	561,078

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

PAPERWEIGHT DEVELOPMENT  CORP.  AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited)
(dollars in thousands)
	Three Months		Three Months		Nine Months		Nine Months
	Ended		Ended		Ended		Ended
	September 29,		September 30,		September 30,		September 29,
	2013		2012		2013		2012
Net sales	$	202,870	$	210,744	$	615,204	$	644,275
Cost of sales		154,286		165,956		465,599		577,388
Gross profit		48,584		44,788		149,605		66,887
Selling, general and administrative expenses		29,859		31,731		92,559		107,907
Restructuring		—		703		—		27,175
Environmental expense insurance recovery		—		(2,188)		—		(2,188)
Operating income (loss)		18,725		14,542		57,046		(66,007)
Other expense (income)
Interest expense		12,343		14,832		42,092		44,925
Debt extinguishment expense		334		—		25,101		—
Interest income		(2)		(42)		(2)		(54)
Foreign exchange (gain) loss		(318)		(864)		62		130
Other expense		—		94		—		166
Income (loss) before income taxes		6,368		522		(10,207)		(111,174)
(Benefit) provision for income taxes		(95)		6		82		146
Net income (loss)		6,463		516		(10,289)		(111,320)
Other comprehensive loss:
Changes in retiree plans		(397)		(528)		(1,192)		(5,310)
Realized and unrealized losses
on derivatives		(1,581)		(1,523)		(569)		(2,292)
Total other comprehensive loss		(1,978)		(2,051)		(1,761)		(7,602)
Comprehensive income (loss)	$	4,485	$	(1,535)	$	(12,050)	$	(118,922)

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

APPVION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited)
(dollars in thousands)
	Three Months		Three Months		Nine Months		Nine Months
	Ended		Ended		Ended		Ended
	September 29,		September 30,		September 30,		September 29,
	2013		2012		2013		2012
Net sales	$	202,870	$	210,744	$	615,204	$	644,275
Cost of sales		154,286		165,956		465,599		577,388
Gross profit		48,584		44,788		149,605		66,887
Selling, general and administrative expenses		29,859		31,731		92,559		107,907
Restructuring		—		703		—		27,175
Environmental expense insurance recovery		—		(2,188)		—		(2,188)
Operating income (loss)		18,725		14,542		57,046		(66,007)
Other expense (income)
Interest expense		12,343		14,832		42,092		44,925
Debt extinguishment expense		334		—		25,101		—
Interest income		(2)		(42)		(2)		(54)
Foreign exchange (gain) loss		(318)		(864)		62		130
Other expense		—		94		—		166
Income (loss) before income taxes		6,368		522		(10,207)		(111,174)
(Benefit) provision for income taxes		(95)		6		82		146
Net income (loss)		6,463		516		(10,289)		(111,320)
Other comprehensive loss:
Changes in retiree plans		(397)		(528)		(1,192)		(5,310)
Realized and unrealized losses
on derivatives		(1,581)		(1,523)		(569)		(2,292)
Total other comprehensive loss		(1,978)		(2,051)		(1,761)		(7,602)
Comprehensive income (loss)	$	4,485	$	(1,535)	$	(12,050)	$	(118,922)

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

PAPERWEIGHT DEVELOPMENT CORP.  AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED
(unaudited)
(dollars in thousands)
	September 29,		September 30,
	2013		2012
Cash flows from operating activities:
Net loss	$	(10,289)	$	(111,320)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation		21,099		89,455
Amortization of intangible assets		1,714		1,714
Impaired inventory revaluation		—		11,078
Amortization of financing fees		1,916		1,968
Amortization of bond discount		696		792
Employer 401(k) noncash matching contributions		2,021		2,332
Foreign exchange loss		71		108
Noncash loss (gain) on hedging		197		(1,983)
Loss on disposals of equipment		131		629
Noncash debt refinancing costs		6,756		—
(Increase)/decrease in assets and increase/(decrease) in liabilities:
Accounts receivable		9,313		(6,032)
Inventories		(1,331)		(6,663)
Other current assets		(3,886)		(1,544)
Accounts payable and other accrued liabilities		(8,325)		37,050
Accrued pension		(12,107)		(23,801)
Other, net		(2,597)		15,904
Net cash provided byoperating activities		5,379		9,687
Cash flows from investing activities:
Proceeds from sale of equipment		6		20
Additions to property, plant and equipment		(20,266)		(9,015)
Net cash used by investing activities		(20,260)		(8,995)
Cash flows from financing activities:
Payments of senior secured first lien notes payable		(305,000)		—
Proceeds from first lien term loan		331,650		—
Payment of industrial development bonds		(2,650)		—
Debt acquisition costs		(7,235)		—
Payments relating to capital lease obligations		(67)		(46)
Proceeds from old revolving line of credit		155,300		190,300
Payments of old revolving line of credit		(159,000)		(182,750)
Proceeds from new revolving line of credit		129,100		—
Payments of new revolving line of credit		(109,100)		—
Payments of State of Ohio loan		(987)		(935)
Proceeds from municipal debt		—		300
Proceeds from issuance of redeemable common stock		1,651		1,677
Payments to redeem common stock		(10,721)		(8,579)
Decrease in cash overdraft		(2,886)		(5,479)
Net cash provided (used) byfinancing activities		20,055		(5,512)
Effect of foreign exchange rate changes on cash and cash equivalents		(9)		22
Change in cash and cash equivalents		5,165		(4,798)
Cash and cash equivalents at beginning of period		1,851		7,241
Cash and cash equivalents at end of period	$	7,016	$	2,443

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

APPVION, INC.  AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED
(unaudited)
(dollars in thousands)
	September 29,		September 30,
	2013		2012
Cash flows from operating activities:
Net loss	$	(10,289)	$	(111,320)
Adjustments to reconcile net loss to net cash
(used) provided by operating activities:
Depreciation		21,099		89,455
Amortization of intangible assets		1,714		1,714
Impaired inventory revaluation		—		11,078
Amortization of financing fees		1,916		1,968
Amortization of bond discount		696		792
Employer 401(k) noncash matching contributions		2,021		2,332
Foreign exchange loss		71		108
Noncash loss (gain) on hedging		197		(1,983)
Loss on disposals of equipment		131		629
Noncash debt refinancing costs		6,756		—
(Increase)/decrease in assets and increase/(decrease) in liabilities:
Accounts receivable		9,313		(6,032)
Inventories		(1,331)		(6,663)
Other current assets		(3,886)		(1,544)
Accounts payable and other accrued liabilities		(12,539)		31,893
Accrued pension		(12,107)		(23,801)
Other, net		(4,029)		14,073
Net cash (used) provided byoperating activities		(267)		2,699
Cash flows from investing activities:
Proceeds from sale of equipment		6		20
Additions to property, plant and equipment		(20,266)		(9,015)
Net cash used by investing activities		(20,260)		(8,995)
Cash flows from financing activities:
Payments of senior secured first lien notes payable		(305,000)		—
Proceeds from first lien term loan		331,650		—
Payment of industrial development bonds		(2,650)		—
Debt acquisition costs		(7,235)		—
Payments relating to capital lease obligations		(67)		(46)
Proceeds from old revolving line of credit		155,300		190,300
Payments of old revolving line of credit		(159,000)		(182,750)
Proceeds from new revolving line of credit		129,100		—
Payments of new revolving line of credit		(109,100)		—
Payments of State of Ohio loan		(987)		(935)
Proceeds from municipal debt		—		300
Due (from) to parent		(3,424)		86
Decrease in cash overdraft		(2,886)		(5,479)
Net cash provided byfinancing activities		25,701		1,476
Effect of foreign exchange rate changes on cash and cash equivalents		(9)		22
Change in cash and cash equivalents		5,165		(4,798)
Cash and cash equivalents at beginning of period		1,851		7,241
Cash and cash equivalents at end of period	$	7,016	$	2,443

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE COMMON STOCK,
ACCUMULATED DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED
(unaudited)
(dollars in thousands, except share data)
	Redeemable Common Stock						Accumulated
							Other
	Shares				Accumulated		Comprehensive
	Outstanding		Amount		Deficit		Income
Balance, December 29, 2012	8,730,118	$	81,704	$	(439,923)	$	5,322
Net loss	—		—		(10,289)		—
Other comprehensive loss	—		—		—		(1,761)
Issuance of redeemable common stock	175,659		3,083		—		—
Redemption of redeemable common stock	(606,841)		(10,721)		—		—
Accretion of redeemable common stock	—		(3,213)		3,213		—
Balance, September 29, 2013	8,298,936	$	70,853	$	(446,999)	$	3,561
Balance, December 31, 2011	9,212,808	$	97,615	$	(299,226)	$	13,024
Net loss	—		—		(111,320)		—
Other comprehensive loss	—		—		—		(7,602)
Issuance of redeemable common stock	232,406		3,508		—		—
Redemption of redeemable common stock	(527,492)		(8,579)		—		—
Accretion of redeemable common stock	—		(7,026)		7,026		—
Balance, September 30, 2012	8,917,722	$	85,518	$	(403,520)	$	5,422

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

APPVION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
FOR THE NINE MONTHS ENDED
(unaudited)
(dollars in thousands, except share data)
	Common Stock										Accumulated
											Other
	Shares				Paid-in		Due From		Accumulated		Comprehensive
	Outstanding		Amount		Capital		Parent		Deficit		Income
Balance, December 29, 2012	100	$	10,500	$	623,305	$	(237,257)	$	(754,779)	$	5,322
Net loss	—		—		—		—		(10,289)		—
Other comprehensive loss	—		—		—		—		—		(1,761)
Change in due from parent	—		—		—		(7,638)		—		—
Balance, September 29, 2013	100	$	10,500	$	623,305	$	(244,895)	$	(765,068)	$	3,561
Balance, December 31, 2011	100	$	10,500	$	623,305	$	(229,100)	$	(606,328)	$	13,024
Net loss	—		—		—		—		(111,320)		—
Other comprehensive loss	—		—		—		—		—		(7,602)
Change in due from parent	—		—		—		(5,071)		—		—
Balance, September 30, 2012	100	$	10,500	$	623,305	$	(234,171)	$	(717,648)	$	5,422

The accompanying notes are an integral part of these condensed consolidated financial statements.

10

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.       BASIS OF PRESENTATION

In the opinion of management, all adjustments necessary for the fair statement of comprehensive income (loss) for the three and nine months ended September 29, 2013 and September 30, 2012, the cash flows for the nine months ended September 29, 2013 and September 30, 2012 and financial position at September 29, 2013 and December 29, 2012 have been made.

During third quarter 2013, the Company recorded an out-of-period adjustment related to the correction of a $1.5 million overstatement of accounts payable related to prior periods. As a result of this correction, $1.4 million was recorded as a decrease to cost of sales and the remaining $0.1 million was recorded as a decrease to selling, general and administrative (“SG&A”) expenses. The Company does not believe the correction of this error is material to its financial statements for any prior periods, to the quarter ended September 29, 2013 or its projected full year results for the year ended December 28, 2013.

These condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes of Paperweight Development Corp. (“PDC”) and its 100%-owned subsidiaries (collectively the “Company”), which includes the consolidated financial statements of Appvion, Inc., formally known as Appleton Papers Inc, and its 100%-owned subsidiaries (collectively “Appvion”) for each of the three years in the period ended December 29, 2012, which are included in the annual report on Form 10-K for the year ended December 29, 2012. The consolidated balance sheet data as of December 29, 2012, contained within these condensed financial statements, was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

During fourth quarter 2012, the Company adopted mark-to-market accounting for its pension and other postretirement benefit plans. Under mark-to-market accounting, all actuarial gains and losses are immediately recognized in net periodic cost annually in the fourth quarter of each year and whenever a plan is determined to qualify for a remeasurement during a fiscal year and, the market-related value of plan assets used in the cost calculations is equal to fair value. Under the Company’s previous accounting method, a portion of the actuarial gains and losses was deferred in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheet and amortized into future periods. In addition, the previous method smoothed the investment gains and losses of the plan assets over a period of five years. While the Company’s historical policy of recognizing pension and other postretirement benefits expense was considered acceptable under accounting principles generally accepted in the United States, the Company believes this new policy to be preferable as it eliminates the delay in recognizing actuarial gains and losses within operating results. This change will also improve the transparency within the Company’s operating results by immediately recognizing the effects of economic and interest rate trends on plan investments and assumptions in the year these actuarial gains and losses are actually incurred. All prior periods presented were retrospectively adjusted to reflect the period-specific effects of applying the new accounting policy.

In connection with this change in accounting policy for pension and other postretirement benefit plans, the Company also elected to change its method of accounting for certain costs included in inventory. The Company elected to exclude the amount of its pension and other postretirement benefit costs applicable to former employees from inventoriable costs. While the Company’s historical policy of including all pension and other postretirement benefits costs, excluding those charged directly to SG&Aexpenses, as a component of inventoriable costs was acceptable, it believes the new policy is preferable as inventoriable costs will only include costs that are directly attributable to current employees involved in the production of inventory. All prior periods presented were retrospectively adjusted to reflect the period-specific effects of applying the new accounting policy.

The effect of the accounting policy changes on the previously-reported results for the three and nine months ended September 30, 2012, was a $2.6 million reduction in net loss and a $4.3 million reduction in net loss, respectively.

11

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

2.       RESTRUCTURING AND OTHER RELATED COSTS

On February 22, 2012, the Company entered into a long-term supply agreement for the purchase of carbonless and thermal base stock for coating at the Company’s converting facilities. Under the terms of the agreement, the supplier will be the exclusive supplier of certain thermal and carbonless base stock used by the Company. The term of the agreement is 15 years and includes successive five-year renewal terms unless either party gives notice of non-renewal.

In connection with its approval of this supply agreement, the Company’s Board of Directors authorized a plan for the Company to dispose of papermaking assets at its West Carrollton, Ohio facility and move its carbonless coating to the Company’s converting plant in Appleton, Wisconsin. As a result, 314 jobs were eliminated at West Carrollton and 68 jobs added at the Appleton facility. The Company maintains its thermal coating operations at the West Carrollton facility. The Company recorded all associated restructuring expense and other related costs, totaling $106.0 million, during 2012. These include the following for the three and nine months ended September 30, 2012 (dollars in thousands):

	For the Three		For the Nine		Location on Statement
	Months Ended		Months Ended		of Comprehensive
	September 30, 2012		September 30, 2012		Income (Loss)
Employee termination benefits	$	(250)	$	25,281	Restructuring
Decommissioning and other expenses		953		1,894	Restructuring
Accelerated depreciation		887		63,140	Cost of sales
Revaluation of inventory		—		11,078	Cost of sales
Loss on disposal of fixed assets		—		572	Cost of sales
	$	1,590	$	101,965

Of the costs recorded during third quarter 2012, $0.9 million were allocated to the carbonless papers segment and $0.7 million were allocated to the thermal papers segment. Of the costs recorded during the first nine months of 2012, $56.1 million were allocated to the carbonless papers segment and $45.9 million were allocated to the thermal papers segment.

The table below summarizes the components of the restructuring reserve included in the Condensed Consolidated Balance Sheets as of September 29, 2013 and December 29, 2012.

	December 29, 2012		2013 Additions		2013		September 29, 2013
	Reserve		to Reserve		Utilization		Reserve
Exit costs – equipment decommissioning	$	765	$	—	$	(375)	$	390
Employee termination benefits		18,454		—		(454)		18,000
	$	19,219	$	—	$	(829)	$	18,390

Employee termination benefits include severance as well as related benefits and pension costs. At September 29, 2013, $0.8 million of the total restructuring reserve was included in current liabilities and $17.6 million was included in other long-term liabilities. The Company expects any remaining charges for exit costs to be immaterial. At September 29, 2013, it is estimated that cash of approximately $40 million remains to be paid as a result of ceasing papermaking operations at West Carrollton. Of this amount, it is expected that approximately $4 million will be paid during the next twelve months. In addition, approximately $9 million will be disbursed, through 2017, as a result of distributions from the Company’s stock fund to former West Carrollton employees terminated as a result of the restructuring. The remaining $27 million may be paid over a period through 2033.

12

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

3.       OTHER INTANGIBLE ASSETS

The Company’s intangible assets consist of the following (dollars in thousands):

	As of September 29, 2013				As of December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Trademarks	$	44,665	$	27,849	$	44,665	$	26,275
Patents		7,474		7,474		7,808		7,808
Customer relationships		5,365		2,921		5,365		2,781
Subtotal		57,504	$	38,244		57,838	$	36,864
Unamortizable intangible assets:
Trademarks		22,865				22,865
Total	$	80,369			$	80,703

Amortization expense for the three and nine months ended September 29, 2013 was $0.6 million and $1.7 million, respectively. Amortization expense for the three and nine months ended September 30, 2012 was $0.6 million and $1.7 million, respectively.

4.       INVENTORIES

Inventories consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Finished goods	$	51,843	$	43,243
Raw materials, work in process, stores and spare parts		43,660		51,106
	$	95,503	$	94,349

Stores and spare parts inventory balances of $15.8 million and $15.9 million at September 29, 2013 and December 29, 2012, respectively, are valued at average cost and are included in raw materials, work in process, stores and spare parts. All other inventories are valued using the first-in, first-out (“FIFO”) method.

5.       PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment balances consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Land and improvements	$	9,729	$	9,634
Buildings and improvements		135,170		134,144
Machinery and equipment		672,429		663,915
Software		36,725		33,643
Capital leases		309		304
Construction in progress		15,493		8,631
		869,855		850,271
Accumulated depreciation		(626,747)		(607,006)
	$	243,108	$	243,265

13

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Depreciation expense for the three and nine months ended September 29, 2013 and September 30, 2012 consists of the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
	September 29,		September 30,		September 29,		September 30,
Depreciation Expense	2013		2012		2013		2012
Cost of sales	$	6,365	$	7,364	$	19,116	$	87,487
Selling, general and administrative expenses		661		583		1,983		1,968
	$	7,026	$	7,947	$	21,099	$	89,455

Included in the depreciation expense above for the three and nine months ended September 30, 2012, the Company recorded $0.9 million and $63.1 million of accelerated depreciation related to the decommissioning of papermaking assets at the West Carrollton, Ohio facility, respectively.  These amounts were included in cost of sales on the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months and nine months ended September 30, 2012 and in accumulated depreciation as presented above.

6.       OTHER CURRENT AND NONCURRENT ASSETS

Other current assets consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Environmental indemnification receivable	$	60,786	$	65,000
Other		9,503		5,620
	$	70,289	$	70,620

The environmental indemnification receivables of $60.8 million and $65.0 million, noted above for the periods ended September 29, 2013 and December 29, 2012, respectively, represent an indemnification receivable from Arjo Wiggins Appleton Ltd, now known as Windward Prospects Ltd (“AWA”), as recorded on the Condensed Consolidated Balance Sheet of Paperweight Development Corp. and Subsidiaries and an indemnification receivable from PDC as recorded on the Condensed Consolidated Balance Sheet of Appvion, Inc. and Subsidiaries.

Other noncurrent assets for Paperweight Development Corp. and Subsidiaries consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Deferred debt issuance costs	$	8,953	$	7,736
Other		8,199		6,750
	$	17,152	$	14,486

Other noncurrent assets for Appvion, Inc. and Subsidiaries consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Deferred debt issuance costs	$	8,953	$	7,736
Other		8,187		6,738
	$	17,140	$	14,474

14

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

7.      OTHER ACCRUED LIABILITIES

Other accrued liabilities, as presented in the current liabilities section of the balance sheet, consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Compensation	$	6,807	$	14,800
Trade discounts		12,921		16,796
Workers’ compensation		8,325		4,875
Accrued insurance		1,799		1,896
Other accrued taxes		1,264		1,494
Postretirement benefits other than pension		3,248		3,248
Fox River Liabilities		60,786		65,000
Restructuring reserve		822		1,219
Other		6,178		10,307
	$	102,150	$	119,635

8.       NEW ACCOUNTING PRONOUNCEMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date." This guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: (a) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) Any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation. ASU 2013-04 is effective for the Company's annual and interim periods beginning after December 15, 2013, though early adoption is permitted, and retrospective application is required for all prior periods presented. The Company is currently evaluating the effects, if any, the adoption will have on its consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." This update adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The updated standard is effective prospectively for the Company's annual and interim periods beginning after December 15, 2012. As required, the Company adopted this guidance beginning in the first quarter ended March 31, 2013 and the disclosures have been included in its condensed consolidated financial statements in Note 18, Accumulated other Comprehensive Income.

In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” It provides the option to perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not an indefinite-lived intangible asset is impaired. ASU 2012‑02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, though early adoption is permitted. As required, the Company adopted this guidance beginning in the first quarter ended March 31, 2013, and there was no impact to the Company’s condensed consolidated financial statements as a result of adoption.

In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities”. It expands required disclosures related to the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. It requires disclosure of net and gross positions in covered financial instruments and derivative instruments which are either (1) offset in accordance with ASC Sections 210-20-45 or 815-10-45, or (2) subject to an enforceable netting or other similar arrangement. To clarify the guidance provided in ASU 2011-11, the FASB issued ASU No. 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities" in January 2013. It clarifies the scope of the guidance to include derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to master netting or similar arrangements. The amendments are effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The Company will be required to adopt this guidance as of its fiscal year beginning December 29, 2013 and is evaluating the effects, if any, the adoption will have on its consolidated financial statements.

15

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

9.      EMPLOYEE BENEFITS

The components of net periodic pension cost associated with the defined benefit pension plans include the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
Pension Benefits	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net periodic benefit cost
Service cost	$	1,268	$	977	$	3,868	$	2,931
Interest cost		4,638		4,867		13,878		14,601
Expected return on plan assets		(6,038)		(5,443)		(18,102)		(16,329)
Amortization of prior service cost		122		122		365		366
Net loss amortization		748		—		748		—
Net periodic benefit cost	$	738	$	523	$	757	$	1,569

The Company planned to contribute $12.5 million to its defined benefit pension plan in 2013. The Company contributed the entire $12.5 million to the plan during the first nine months of 2013.

Certain of the Company’s hourly employees participated in a multi-employer defined benefit plan, the Pace Industry Union-Management Pension Plan (EIN #11-6166763). Participants in this plan included the West Carrollton, Ohio represented manufacturing employees, where the collective bargaining agreement expired April 1, 2012, as well as the represented employees at the Kansas City, Kansas distribution center, where the collective bargaining agreement expired December 31, 2011. As a result of labor contracts ratified in June 2012 and September 2012, by the bargaining employees in Kansas City and West Carrollton, respectively, both groups elected to end their participation in this multi-employer plan and instead participate in the defined benefit pension plan sponsored by the Company. This resulted in a full withdrawal from the multi-employer plan, for which, the Company recorded a $7.0 million expense in third quarter 2012 representing its estimated cost to satisfy its complete withdrawal liability under the terms of the plan’s trust agreement. This was in addition to the $18.0 million partial withdrawal liability recorded during first quarter 2012 due to the workforce reduction at the West Carrollton, Ohio plant resulting from the cessation of papermaking activities. The estimated obligation for the complete withdrawal liability was derived from available information, including but not limited to collective bargaining agreements, plan trust agreements, participation agreements, ERISA statutes, regulations and rulings, discussions with the plan trustee and discussions with legal counsel. Therefore, the Company has recorded a $25 million liability as its best estimate of the amount to satisfy the withdrawal liability, with a payment period extending up to 20 years, discounted in accordance with ASC Section 450-20-S99-1.

10.      POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS

The components of other postretirement benefit cost include the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
Other Postretirement Benefits	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net periodic benefit cost
Service cost	$	98	$	94	$	260	$	281
Interest cost		342		469		1,092		1,409
Amortization of prior service
credit		(519)		(650)		(1,557)		(1,950)
Net gain amortization		(1,889)		—		(1,889)		—
Curtailment gain		—		—		—		(3,726)
Net periodic benefit income	$	(1,968)	$	(87)	$	(2,094)	$	(3,986)

16

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

11.      LONG-TERM INCENTIVE COMPENSATION    

In December 2001, the Company adopted the Appvion, Inc. Long-Term Incentive Plan (“LTIP”). Effective January 3, 2010, the Company adopted a long-term restricted stock unit plan ("RSU"). Both plans utilize phantom units. The value of a unit in the LTIP is based on the change in the fair market value of PDC’s common stock under the terms of the employee stock ownership plan (the “ESOP”) between the grant date and the exercise date. The value of a unit in the RSU is based on the value of PDC common stock, as determined by the ESOP trustee. As of September 29, 2013, the fair market value of one share of PDC common stock is $17.85. All units under both the LTIP and RSU plans will vest immediately, and cash payment will be made upon a change in control as defined in the plans.

On January 2, 2013,  160,000 RSU units became fully vested and exercisable. In accordance with the plan, payment for these RSU’s was made on February 22, 2013. In addition, on July 2, 2013,  1,500 RSU units became fully vested and exercisable. Payment for these RSU’s was made on August 9, 2013. During the first nine months of 2013, 114,925 additional units were granted under the RSU plan. Due to terminations of employment, 6,300 unvested units were forfeited during the first nine months of 2013. A balance of 216,125 RSU units remains as of September 29, 2013. Approximately $0.3 million and $0.9 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 29, 2013. Approximately $0.1 million and $1.3 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 30, 2012. During the first nine months of 2013, 194,100 additional units were granted under the LTIP plan. Approximately $0.3 million and $1.0 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 29, 2013. Due to the third quarter 2012 change in PDC share price, $0.4 million of previously-recorded expense related to this plan was recovered during this prior year quarter. Approximately $1.2 million of expense was recorded during the nine-month period ended September 30, 2012.

Beginning in 2006, the Company established a nonqualified deferred compensation agreement with each of its non-employee directors. Approximately $0.1 million was recorded as expense, related to this plan, for the three-month period ended September 29, 2013. Due to the third quarter 2012 change in PDC share price, $0.1 million of previously-recorded expense related to this plan was recovered during the prior year quarter. Approximately $0.3 million and $0.2 million was recorded as expense, related to this plan, for each of the nine-month periods ended September 29, 2013 and September 30, 2012, respectively.

12.      COMMITMENTS AND CONTINGENCIES 

Lower Fox River

Appvion Removed as a Potentially Responsible Party (“PRP”).On April 10, 2012, the United States District Court for the Eastern District of Wisconsin granted Appvion’s motion for summary judgment and dismissed all claims against Appvion in the enforcement action.  The decision establishes that Appvion is no longer a PRP, no longer liable under the federal Comprehensive Environmental Response, Compensation, and Liability Act, (“CERCLA” or “Superfund”), no longer considered a legal successor to NCR’s liabilities, and no longer required to comply with the 106 Order commanding remediation of the Lower Fox River. In addition, on July 3, 2012, the United States District Court for the Eastern District of Wisconsin determined that Appleton Coated Paper Company and NCR did not arrange for the disposal of hazardous waste within the meaning of CERCLA.

The rulings do not affect Appvion’s rights or obligations to share defense and liability costs with NCR in accordance with the terms of  a 1998 agreement and a 2005 arbitration determination (“the Arbitration”) arising out of Appvion’s acquisition of assets from NCR in 1978 while it was a subsidiary of B.A.T Industries Limited (“BAT”). Appvion and BAT have joint and several liability under the Arbitration for certain costs relating to the Lower Fox River and other potential future sites. Appvion has initiated the dispute resolution procedures outlined in the 1998 agreement. Issues in dispute include the scope of Appvion’s liability under the agreement, if any, as well as funding requests and supporting documentation from NCR (the “Dispute Resolution”). The current carrying amount of Appvion’s liability under the Arbitration is $60.8 million, which represents Appvion’s best estimate of potential amounts to be paid. On June 8, 2012, BAT served AWA with a claim filed in a United Kingdom court, seeking a declaration that BAT is indemnified by AWA from and against any losses relating to the Lower Fox River. On June 26, 2012, BAT served Appvion with the same claim, seeking a declaration that BAT is indemnified by Appvion. Appvion intends to vigorously defend against this claim and has filed an application challenging the jurisdiction of the United Kingdom court.

17

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Prior to the ruling in the above enforcement action, the United States Environmental Protection Agency (“EPA”) and Wisconsin Department of Natural Resources (“DNR”) claimed Appvion was a PRP with respect to historic discharges of polychlorinated biphenyls (“PCBs”) into the Lower Fox River in Wisconsin. Carbonless paper containing PCBs was manufactured at what is currently the Appleton plant from 1954 until 1971. During this period, wastewater containing PCBs was discharged into the Lower Fox River from a publicly-owned treatment works, from the Combined Locks, Wisconsin paper mill and from other local industrial facilities. Wastewater from the Appleton plant was processed through the publicly-owned treatment works.Appvion purchased the Appleton plant and the Combined Locks, Wisconsin paper mill from NCR in 1978, long after the use of PCBs in the manufacturing process was discontinued.The EPA issued an administrative order in November 2007, directing the PRPs to implement the remedial action of the Fox River pursuant to which certain of the PRPs commenced remediation in 2008. The various PRPs, including NCR, the EPA and the DNR continue to contest the scope, extent and costs of the remediation as well as the appropriate basis for determining the parties’ relative shares of the remediation cost.

The rulings also do not affect either of the two indemnification agreements entered in 2001 wherein AWA agreed to indemnify PDC and PDC agreed to indemnify Appvion for costs, expenses and liabilities related to certain governmental and third-party environmental claims(including certain claims under the Arbitration),  which are defined in the agreements as the Fox River Liabilities. Appvion has recorded a $60.8 million environmental indemnification receivable as of September 29, 2013.

Estimates of Liability.The accrued Arbitration liability is derived from available information, including consideration of uncertainties regarding the scope and cost of implementing the final remediation plan, the scope of restoration and final valuation of natural resource damage (“NRD”) assessments, the evolving nature of remediation and restoration technologies and governmental policies, NCR’s share of liability relative to other PRPs and the extent of BAT’s performance under the Arbitration. Appvion believes NCR has paid more than its estimated share of the liability based on the assumptions below. Based on the analysis of available information, it is reasonably possible that the Company’s costs to satisfy its Arbitration liability, when ultimately settled, could range from $10 million to $310 million, with a payment period extending beyond ten years. The Company has recorded a liability of $60.8 million at September 29, 2013, which is its best estimate of the probable loss within this range. The Company believes the likelihood of an outcome in the upper end of the range is significantly less than other possible outcomes within the range.  Interim legal determinations may periodically obligate NCR (and BAT and Appvion pursuant to the Arbitration) to fund portions of the cleanup costs to extents greater than NCR’s share as finally determined, and in such instances, Appvion may reserve additional amounts (including appropriate reimbursement under its indemnification agreements as discussed below).

The following assumptions were used in evaluating Appvion’s Arbitration liability:

•      As of December 31, 2012, NCR has recorded an estimated liability of $115 million representing its portion of defense and liability costs with respect to the Lower Fox River;

•      Technical analysis contending that discharges from NCR’s former assetsrepresent 8% to 10% of the total PCBs discharged by the PRPs;

•      Appvion’s and BAT’s joint and several responsibility for over half of the claims asserted against NCR, based on the Arbitration and the Dispute Resolution;

•      Based on legal analyses and ongoing reviews of publicly-available financial information, Appvion believes that other PRPs will be required, and have adequate financial resources, to pay their respective shares of the remediation and NRD claims for the Lower Fox River; and

•      legal fees and other expenses.

Appvion believes its recorded liability reflects its best estimate of potential payments under the Arbitration Agreement. While it is reasonably possible that Appvion may be responsible for additional payments under the Arbitration, additional payments are not deemed probable because ongoing litigation, continuing negotiation, and the Dispute Resolution process could significantly affect Appvion’s future obligation under the Arbitration.

AWA Indemnification.Pursuant to two indemnification agreements entered in 2001, AWA agreed to indemnify PDC and PDC agreed to indemnify Appvion for costs, expenses and liabilities related to certain governmental and third-party environmental claims, which are defined in the agreements as the Fox River Liabilities and other potential future sites.

18

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Under the indemnification agreements, Appvion is indemnified for the first $75 million of Fox River Liabilities and for amounts in excess of $100 million. During 2008, Appvion paid $25 million to satisfy its portion of the Fox River Liabilities not covered by the indemnification agreement with AWA. As of September 2013, AWA has paid $277.7 million in connection with Fox River Liabilities. At September 29, 2013, PDC’s total indemnification receivable from AWA was $60.8 million, all of which is recorded in other current assets. At September 29, 2013, the total Appvion indemnification receivable from PDC was $60.8 million, all of which is recorded in other current assets.

In March 2008, Appvion received favorable jury verdicts in a state court declaratory judgment relating to insurance coverage of its environmental claims involving the Fox River. A final judgment and order was entered in January 2009 and upheld by the Wisconsin Court of Appeals in June 2010. Settlements have been negotiated between the insurers and Appvion. Under the terms of the indemnification agreement, recoveries from insurance are reimbursed to AWA to the extent of its indemnification obligation. During 2010, Appvion recorded an $8.9 million receivable, representing settlements to be received in excess of amounts reimbursable to AWA, in the Consolidated Balance Sheet as of January 1, 2011. During 2011, Appvion received $6.2 million of these funds. During third quarter 2012, an additional  environmental expense insurance recovery of $2.2 million was recorded as a separate line item within operating income on the Consolidated Statement of Comprehensive Loss and all remaining funds were received by Appvion in 2012.

The indemnification agreements negotiated with AWA are designed to ensure that Appvion will not be required to fund any of the indemnified costs and expenses in relation to the Fox River Liabilities. This arrangement is working as designed and is expected to continue to protect Appvion with respect to the indemnified costs and expenses, based on Appvion’s review of the financial condition of AWA and estimates of Appvion’s liability. As earlier noted, Appvion’s ultimate liability pursuant to the Arbitration could prove to be significantly larger than the current carrying amount and potentially could exceed the financial capability of AWA. In the event Appvion is unable to secure payment from AWA or its former parent companies, Appvion may be liable for amounts pursuant to the Arbitration and these amounts may be material to Appvion.

West Carrollton

The West Carrollton, Ohio facility operates pursuant to various state and federal permits for discharges and emissions to air and water. As a result of the de-inking of carbonless paper containing PCBs through the early 1970s, there may have been releases of PCBs and volatile organic compounds into the soil in the area of the wastewater impoundments at the West Carrollton facility and low levels of PCBs have been detected in the groundwater immediately under this area. In addition, PCB contamination is present in sediment in the adjacent Great Miami River, but it is believed that this contamination is from a source other than the West Carrollton facility.

Based on investigation and delineation of PCB contamination in soil and groundwater in the area of the wastewater impoundments, the Company believes that it may be necessary to undertake remedial action in the future, although the Company is currently under no obligation to do so. The Company has not had any discussions or communications with any federal, state or local agencies or authorities regarding remedial action to address PCB contamination at the West Carrollton facility. The cost for remedial action, which could include installation of a cap, long-term pumping, treating and/or monitoring of groundwater and removal of sediment in the Great Miami River, was estimated in 2001 to range up to approximately $10.5 million, with approximately $3 million in short-term capital costs and the remainder to be incurred over a period of 30 years. However, costs could exceed this amount if additional contamination is discovered, if additional remedial action is necessary or if the remedial action costs are more than expected.

Because of the uncertainty surrounding the ultimate course of action for the West Carrollton facility property, the Great Miami River remediation and the Company’s share of these remediation costs, if any, and since the Company is currently under no obligation to undertake remedial action in the future, no provision has been recorded in its financial statements for estimated remediation costs. In conjunction with the acquisition of PDC by the ESOP in 2001, and as limited by the terms of the purchase agreement, AWA agreed to indemnify the Company for 50% of all environmental liabilities at West Carrollton up to $5.0 million and 100% of all such environmental costs exceeding $5.0 million. In addition, the former owners and operators of the West Carrollton facility may be liable for all or part of the cost of remediation of historic PCB contamination.

19

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Other

From time to time, the Company may be subject to various demands, claims, suits or other legal proceedings arising in the ordinary course of business. A comprehensive insurance program is maintained to provide a measure of financial protection against such matters, though not all such exposures are, or can be, addressed by insurance. Estimated costs are recorded for such demands, claims, suits or proceedings of this nature when reasonably determinable. The Company has successfully defended such claims, settling some for amounts which are not material to the business and obtaining dismissals in others. While the Company will vigorously defend itself and expects to prevail in any similar cases that may be brought against it in the future, there can be no assurance that it will be successful.

Except as described above, and assuming the Company’s expectations regarding defending such demands, claims, suits or other legal or regulatory proceedings prove accurate, the Company does not believe that any pending or threatened demands, claims, suits or other legal proceedings will have, individually or in the aggregate, a materially adverse effect on its business, financial condition and results of operations or cash flows.

13.      EMPLOYEE STOCK OWNERSHIP PLAN

The Company’s matching contributions charged to expense were $0.6 million and $0.5 million for the three-month periods ended September 29, 2013 and September 30, 2012, respectively. The Company’s matching contributions charged to expense were $2.0 million and $2.3 million for the nine-month periods ended September 29, 2013 and September 30, 2012, respectively.  As a result of hardship withdrawals, required diversifications and employee terminations,  606,841 shares of PDC redeemable common stock were repurchased during the first nine months of 2013 at an aggregate price of approximately $10.7million. During the same period, the ESOP trustee purchased 94,067 shares of PDC redeemable common stock for an aggregate price of $1.6 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for this same period resulted in an additional 81,592shares of redeemable common stock being issued. As a result of hardship withdrawals, required diversifications and employee terminations, 527,492 shares of PDC redeemable common stock were repurchased during the first nine months of 2012 at an aggregate price of approximately $8.6 million. During the same period, the ESOP trustee purchased 111,151 shares of PDC redeemable common stock for an aggregate price of $1.7 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for this same period resulted in an additional 121,255 shares of redeemable common stock being issued.

In accordance with ASC 480, “Distinguishing Liabilities from Equity,” redeemable equity securities are required to be accreted so the amount in the balance sheet reflects the estimated amount redeemable at the earliest redemption date based upon the redemption value at each period-end. Redeemable common stock is being accreted to the earliest redemption date, mandated by federal law, based upon the estimated fair market value of the redeemable common stock as of September 29, 2013. As of this date, the fair market value of one share of PDC common stock was $17.85. For several semi-annual periods prior to year-end 2010, stock valuations resulted in decreases to the stock price. The impact of these reductions caused the Company to reduce redeemable common stock accretion by $3.2 million for the nine months ended September 29, 2013. Based upon the estimated fair value of the redeemable common stock, an ultimate redemption liability of approximately $148 million has been determined. The redeemable common stock recorded book value as of September 29, 2013,  was $71 million.

Similarly, redeemable common stock accretion was reduced by $7.0 million for the nine months ended September 30, 2012. Based upon the estimated fair value of the redeemable common stock, an ultimate redemption liability of approximately $151 million was determined. The recorded book value of the redeemable common stock as of September 29, 2012 was $86 million.

20

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

14.      DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company selectively uses financial instruments to manage some market risks from changes in foreign currency exchange rates, commodity prices or interest rates. The fair values of all derivatives are recorded in the Condensed Consolidated Balance Sheets. The change in a derivative’s fair value is recorded each period in current earnings or accumulated other comprehensive income, depending on whether the derivative is designated and qualifies as part of a hedge transaction and, if so, the type of hedge transaction.

The Company selectively hedges forecasted transactions that are subject to foreign currency exchange exposure by using forward exchange contracts. These instruments are designated as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs. The fair value of foreign currency forward contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward note, also deemed to be categorized as Level 2. The effective portion of the contracts’ gains or losses due to changes in fair value is initially recorded as a component of accumulated other comprehensive income and is subsequently reclassified into earnings when the underlying transactions occur and affect earnings or if it becomes probable the forecasted transactions will not occur. These contracts are highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates. The notional amount of foreign exchange contracts used to hedge foreign currency transactions was $17.3 million as of September 29, 2013. These contracts have settlement dates extending through June 2014.

The Company selectively hedges forecasted commodity transactions that are subject to pricing fluctuations by using collar contracts to manage risks associated with market fluctuations in energy prices. These contracts are recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs based on the New York Mercantile Exchange as measured on the last trading day of the accounting period and compared to the collar price. The contracts’ gains or losses due to changes in fair value are recorded in current period earnings. At September 29, 2013, the hedged volumes of these contracts totaled 1,798,255 MMBTU (Million British Thermal Units) of natural gas. The contracts have settlement dates extending through December 2014.

The Company selectively hedges forecasted commodity transactions that are subject to pricing fluctuations by using swap contracts to manage risks associated with market fluctuations in pulp prices. During first quarter 2012, there were two pulp swap contracts in place. The first swap had a hedge volume of 2,000 tons of pulp and was settled in February 2012. It was not designated as a hedge, and therefore, gains or losses due to changes in fair value were recorded in current period earnings. The second pulp hedge was designated as a cash flow hedge of forecasted pulp purchases, and therefore, the change in the effective portion of the fair value of the hedge was deferred in accumulated other comprehensive income until the inventory containing the pulp was sold. This pulp hedge was settled as of September 30, 2012. As of September 29, 2013, there were no pulp swap contracts in place.

In July 2013, Appvion fixed the interest rate, at 7.24%, on $100 million of its variable rate first lien term loan using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. This interest rate swap has been designated as a cash flow hedge and is recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs.

The following table presents the location and fair values of derivative instruments included in the Company’s Condensed Consolidated Balance Sheets (dollars in thousands):

Designated as a Hedge	Balance Sheet Location	September 29, 2013		December 29, 2012
Foreign currency exchange derivatives	Other current liabilities	$	(510)	$	(1,014)
Interest Rate Swap	Other long-term liabilities		(1,334)		—
Not Designated as a Hedge
Natural gas collar	Other current assets		65		—
Natural gas collar	Other current liabilities		—		(43)

21

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

The following table presents the location and amount of losses (gains) on derivative instruments and related hedge items included in the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 29, 2013 and September 30, 2012 and losses (gains) initially recognized in accumulated other comprehensive income in the Condensed Consolidated Balance Sheets at the period-ends presented (dollars in thousands):

	Statement of	For the Three		For the Three		For the Nine		For the Nine
	Comprehensive	Months Ended		Months Ended		Months Ended		Months Ended
	Income (Loss)	September 29,		September 30,		September 29,		September 30,
Designated as a Hedge	Location	2013		2012		2013		2012
Foreign currency exchange derivatives	Net sales	$	333	$	(1,070)	$	624	$	(2,653)
Losses (gains) recognized in
accumulated other
comprehensive income							365		(190)
Pulp fixed swap	Cost of sales		—		262		197		656
Pulp fixed swap	Other expense		—		94		—		166
Losses recognized in accumulated
other comprehensive income							—		722
Interest rate swap
Losses recognized in accumulated
other comprehensive income							1,334		—
Not Designated as a Hedge
Natural gas collar/fixed swap	Cost of sales		(87)		(29)		(107)		239
Pulp fixed swap	Cost of sales		—		—		—		10

For a discussion of the fair value of financial instruments, see Note 16, Fair Value Measurements.

22

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

15.      LONG-TERM OBLIGATIONS

Long-term obligations, excluding capital lease obligations, consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Old revolving credit facility at approximately 4.25%	$	—	$	3,700
New revolving credit facility at approximately 4.75%		20,000		—
Secured variable rate industrial development bonds, 0.3% average interest rate at
September 29, 2013, $2,650 due and repaid in August 2013 and $6,000 due in 2027		6,000		8,650
State of Ohio assistance loan at 6%, approximately $100 due monthly and final
payment due May 2017		4,440		5,210
State of Ohio loan at 3%, approximately $30 due monthly and final
payment due May 2019		1,785		2,002
Columbia County, Wisconsin municipal debt due December 2019		300		300
Senior subordinated notes payable at 9.75%, due June 2014		32,195		32,195
Senior secured first lien notes payable at 10.5%, due June 2015		—		305,000
Unamortized discount on 10.5% senior secured first lien notes payable, due June 2015		—		(3,224)
Second lien notes payable at 11.25%, due December 2015		161,766		161,766
First lien term loan at 5.75%, due June 2019		335,000		—
Unamortized discount on first lien term loan, due June 2019		(3,224)		—
		558,262		515,599
Less obligations due within one year		(50,070)		(3,975)
	$	508,192	$	511,624

On August 1, 2013, the Company made a mandatory debt repayment of $2.7 million, plus interest, on a portion of its Industrial Development Bonds.

On June 28, 2013, Appvion completed a voluntary refinancing of a portion of its debt to extend debt maturities, reduce interest costs and increase financial flexibility and liquidity options. The refinancing included the execution of a new credit agreement providing for a $100 million five-year revolving line of credit due June 2018 and a $335 million first lien term loan due June 2019. The new line of credit replaced the five-year, $100 million revolving credit facility due February 2015. The new revolving credit facility provides for up to $100 million of revolving loans including a letter of credit sub-facility of up to $25 million and a swing line sub-facility of up to $5 million. Appvion’s borrowings under the revolving credit facility bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR plus 4.5%, per annum.

Proceeds from the $335 million first lien term loan, less expenses and discounts, were $326.3 million. These proceeds were used to redeem $300.7 million of the 10.5% senior secured first lien notes due June 2015, pay $1.1 million of interest due on the notes, pay $18.1 million of note premiums and costs associated with the note redemption, repay $6.0 million of the old revolver and pay $0.4 million of interest and fees due on the old revolver. The $18.1 million is included in debt extinguishment expense on the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 29, 2013. In addition, there was a cash outlay of $7.2 million for debt acquisition costs. As a result of the refinancing, $6.7 million of unamortized deferred debt issuance costs and original issue discount associated with the redeemed senior secured first lien notes and old revolver were written off and included in debt extinguishment expense.

23

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

The first lien term loan bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR, but not less than 1.25%, plus 4.5%, per annum. On July 30, 2013, Appvion fixed the interest rate at 7.24%, on $100.0 million of this variable rate debt using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. The term loan amortizes in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount, with the balance payable on June 28, 2019. Also, within five business days after the year-end financial statements have been filed, Appvion shall prepay an aggregate principal amount of the term loan equal to the excess, if any, of (a) 50% of defined excess cash flow, provided that such percentage shall be reduced to (1) 25% based upon Appvion achieving a consolidated leverage ratio of less than 3.50 to 1.0 but greater than or equal to 2.50 to 1.0 and (2) 0% based upon Appvion achieving a consolidated leverage ratio of less than 2.50 to 1.0 minus (b) the aggregate amount of all prepayments of the revolving credit line which constitute permanent reductions of the revolving credit facility and all optional prepayments of the first lien term loan made during the year.

On July 31, 2013, Appvion redeemed the remaining $4.3 million of 10.5% senior secured first lien notes due June 2015, plus interest and $0.2 million of debt extinguishment expense. In addition, $0.1 million of unamortized deferred debt issuance costs and original issue discount were written off and included in debt extinguishment expense.

The new credit agreement ranks senior in right of payment to all existing and future subordinated indebtedness of Appvion and is secured by security interests in substantially all of the property and assets of Appvion and the debt guarantors. As noted above, the maturity date of the revolving credit facility is June 28, 2018 and the maturity date of the first lien term loan is June 28, 2019. If any amount of the second lien notes remains outstanding on June 30, 2015, then the maturity date of the revolving credit facility shall automatically be deemed to be June 30, 2015 and if any amount of the second lien notes remains outstanding on September 15, 2015, the maturity date of the first lien term loan shall automatically be deemed to be September 15, 2015. The new credit agreement is unconditionally, and jointly and severally, guaranteed by PDC and Appvion Canada, Ltd. It contains affirmative and negative covenants customary for similar credit facilities, which among other things, require Appvion to meet a minimum fixed charge coverage ratio under certain circumstances and restricts Appvion’s ability and the ability of Appvion’s subsidiaries, subject to certain exceptions, to incur additional indebtedness and liens, engage in sale and leaseback transactions, make investments, make loans and advances, transact certain asset sales, engage in mergers, acquisitions, consolidations, liquidations and dissolutions, pay dividends or make other payments in respect of equity interests and other restricted payments, engage in certain transactions with affiliates, limit capital expenditures and make prepayments, redemptions and repurchases of other indebtedness.

During the first nine months of 2013, the Company made mandatory debt repayments of $1.0 million, plus interest, on its State of Ohio loans. Prior to the refinancing, Appvion had borrowed an additional $36.9 million,net, from the old revolving credit facility. This was repaid in full with $6.0 million of proceeds from the $335 million first lien term loan and $34.6 million of borrowing from the new revolving credit facility. Year-to-date through September 29, 2013, the Company borrowed $129.1 million and repaid $109.1 million on its new revolving credit facility, leaving an outstanding balance at quarter-end of $20.0 million. In addition, approximately $12.9 million of the new revolving credit facility was used to support outstanding letters of credit.

During March 2012, the Company received the proceeds of a $0.3 million note issued to Appvion., Inc. by Columbia County, Wisconsin.

The second lien notes, as amended, contain covenants that restrict Appvion’s ability and the ability of Appvion’s other guarantors to sell assets or merge or consolidate with or into other companies; borrow money; incur liens; pay dividends or make other distributions; make other restricted payments and investments; place restrictions on the ability of certain subsidiaries to pay dividends or other payments to Appvion; enter into sale and leaseback transactions; amend particular agreements relating to the transaction with former parent AWA and the ESOP; and enter into transactions with certain affiliates. These covenants are subject to important exceptions and qualifications set forth in the indenture governing the 11.25% second lien notes due 2015, as amended.

The senior subordinated notes, as amended, are unconditionally guaranteed by PDC and Rose Holdings Limited, subject to certain limitations.

24

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

The Company was in compliance with all debt covenants at September 29, 2013, and is forecasted to remain compliant for the next 12 months. The Company’s ability to comply with the financial covenants in the future depends on achieving forecasted operating results and operating cash flows. The Company’s failure to comply with its covenants, or an assessment that it is likely to fail to comply with its covenants, could lead the Company to seek amendments to, or waivers of, the financial covenants. The Company cannot provide assurance that it would be able to obtain any amendments to or waivers of the covenants. In the event of noncompliance with debt covenants, if the lenders will not amend or waive the covenants, the debt would be due and the Company would need to seek alternative financing. The Company cannot provide assurance that it would be able to obtain alternative financing. If the Company were not able to secure alternative financing, this would have a material adverse impact on the Company.

16.      FAIR VALUE MEASUREMENTS

The carrying amount (including current portions) and estimated fair value of certain of the Company’s recorded financial instruments are as follows (dollars in thousands):

	September 29, 2013				December 29, 2012
	Carrying		Fair		Carrying		Fair
Financial Instruments	Amount		Value		Amount		Value
Senior subordinated notes payable	$	32,195	$	32,155	$	32,195	$	32,356
Senior secured first lien notes payable		—		—		301,776		319,883
Second lien notes payable		161,766		182,796		161,766		175,516
First lien term loan		331,776		331,776		—		—
Revolving credit facility		20,000		20,000		3,700		3,700
State of Ohio loans		6,225		6,225		7,212		7,212
Columbia County, Wisconsin municipal debt		300		300		300		300
Industrial development bonds		6,000		6,000		8,650		8,650
	$	558,262	$	579,252	$	515,599	$	547,617

The senior subordinated notes payable and the second lien notes payable are traded regularly in public markets and therefore, the fair value was determined using Level 1 inputs based on quoted market prices. The first lien term loan is traded regularly in public markets and therefore, the fair value was determined using Level 1 inputs based on quoted market prices. The fair value of the State of Ohio loans was determined using Level 2 observable market inputs including current rates for financial instruments of the same remaining maturity and similar terms. The industrial development bonds have a variable interest rate that reflects current market terms and conditions.

Due to their short-term nature, the carrying values of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of fair value as of September 29, 2013 and December 29, 2012.

25

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

17.      SEGMENT INFORMATION

The Company’s reportable segments are as follows: carbonless papers, thermal papers and Encapsys®. Management evaluates the performance of the segments based primarily on operating income (loss). Items excluded from the determination of segment operating income (loss) are unallocated corporate charges, interest income, interest expense, debt extinguishment expense, foreign exchange (gain) loss, and other expense. The Company does not allocate total assets internally in assessing operating performance and does not track capital expenditures by segment. Net sales, operating income (loss) and depreciation and amortization, as determined by the Company for its reportable segments, are as follows (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net sales
Carbonless papers	$	88,791	$	95,857	$	266,818	$	315,733
Thermal papers		105,639		106,534		323,033		304,946
		194,430		202,391		589,851		620,679
Encapsys		12,437		12,804		38,505		38,998
Intersegment (A)		(3,997)		(4,451)		(13,152)		(15,402)
Total	$	202,870	$	210,744	$	615,204	$	644,275
Operating income (loss)
Carbonless papers	$	10,777	$	9,968	$	30,460	$	(30,782)
Thermal papers		7,769		1,851		26,299		(28,210)
		18,546		11,819		56,759		(58,992)
Encapsys		2,810		3,369		9,500		8,443
Unallocated corporate charges		(2,032)		13		(7,223)		(13,158)
Intersegment (A)		(599)		(659)		(1,990)		(2,300)
Total	$	18,725	$	14,542	$	57,046	$	(66,007)
Depreciation and amortization (B)
Carbonless papers	$	3,758	$	4,645	$	11,264	$	49,524
Thermal papers		3,355		3,426		10,064		39,408
		7,113		8,071		21,328		88,932
Encapsys		466		463		1,430		2,217
Unallocated corporate charges		19		(16)		55		20
Total	$	7,598	$	8,518	$	22,813	$	91,169

(A) Intersegment represents the portion of the Encapsys segment financial results relating to microencapsulated products provided internally for the production of carbonless papers.

(B) Depreciation and amortization are allocated to the reportable segments based on the amount of activity provided by departments to the respective product lines in each reportable segment.

During the three and nine months ended September 30, 2012, the Company recorded $1.6 million and $102.0 million, respectively, in restructuring expense and other costs related to the ceasing of papermaking operations at the West Carrollton, Ohio facility (see Note 2, Restructuring and Other Related Costs). The operating income (loss) of the carbonless papers segment for the three and nine months ended September 30, 2012 included $0.9 million and $56.1 million, respectively, of restructuring and other related charges and $0.7 million and $45.9 million, respectively, was allocated to the thermal papers segment. A $6.8 million settlement charge relating to the full withdrawal from a multi-employer pension plan was also recorded in the thermal papers segment during the prior year quarter. Unallocated corporate charges for the three and nine months ended September 30, 2012 included $0.3 million and $7.2 million, respectively, of transaction costs for a discontinued business combination. Also, third quarter 2012 included $2.2 million of environmental expense insurance recovery.

26

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Of the $1.6 million and $102.0 million of restructuring and other related charges recorded during the three and nine months ended September 30, 2012, $0.9 million and $63.1 million, respectively, was related to accelerated depreciation of the decommissioned papermaking assets. The carbonless papers segment was charged with $0.5 million and $34.7 million of this depreciation, respectively. The thermal papers segment was charged with $0.4million and $28.4 million of this depreciation, respectively.

18.      ACCUMULATED OTHER COMPREHENSIVE INCOME

The changes in accumulated other comprehensive income by component for the nine months ended September 29, 2013 are as follows (dollars in thousands):

	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 29, 2012	$	6,453	$	(1,131)	$	5,322
Other comprehensive loss before reclassifications		—		(1,390)		(1,390)
Amounts reclassified from accumulated other
comprehensive income		(1,192)		821		(371)
Net other comprehensive loss		(1,192)		(569)		(1,761)
Balance, September 29, 2013	$	5,261	$	(1,700)	$	3,561

The changes in accumulated other comprehensive income by component for the nine months ended September 30, 2012 are as follows (dollars in thousands):

The changes in accumulated other comprehensive income by component for the nine months ended September 30, 2012 were as follows (dollars in thousands):
	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 31, 2011	$	11,265	$	1,759	$	13,024
Other comprehensive loss before reclassifications		—		(295)		(295)
Amounts reclassified from accumulated other
comprehensive income		(5,310)		(1,997)		(7,307)
Net other comprehensive loss		(5,310)		(2,292)		(7,602)
Balance, September 30, 2012	$	5,955	$	(533)	$	5,422

All amounts presented are net of tax.

27

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES

AND APPVION, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(unaudited)

Details about these reclassifications are as follows (dollars in thousands):

		Amount Reclassified from
		Accumulated Other
		Comprehensive Income
										Affected Line Item
	For the Three		For the Three		For the Nine		For the Nine			in Consolidated
Details about Accumulated	Months Ended		Months Ended		Months Ended		Months Ended			Statements of
Other Comprehensive	September 29,		September 30,		September 29,		September 30,			Comprehensive Income
Income Components	2013		2012		2013		2012			(Loss)
Changes in retiree plans
Amortization of prior service credit	$	397	$	528	$	1,192	$	5,310	(a)
Hedging activities
Foreign exchange contracts	$	(333)	$	1,070	$	(624)	$	2,653		Net sales
Commodity contracts		—		(262)		(197)		(656)		Cost of sales
	$	(333)	$	808	$	(821)	$	1,997
Total reclassifications for the period	$	64	$	1,336	$	371	$	7,307
(a) These accumulated other comprehensive income components are included in the computation of net periodic
pension cost. See Note 9, Employee Benefits, and Note 10, Postretirement Benefit Plans other than Pensions.

All amounts presented are net of tax.

19.      GUARANTOR FINANCIAL INFORMATION

Appvion (the “Issuer”) has issued senior subordinated notes, as amended, which are guaranteed by PDC (the “Parent Guarantor”), as well as by Rose Holdings Limited, a 100%-owned subsidiary of Appvion (the “Subsidiary Guarantor”).

Presented below is condensed consolidating financial information for the Parent Guarantor, the Issuer, the Subsidiary Guarantor and a 100%-owned non-guarantor subsidiary (the “Non-Guarantor Subsidiary”) as of September 29, 2013 and December 29, 2012, and for the three and nine months ended September 29, 2013 and September 30, 2012. This financial information should be read in conjunction with the consolidated financial statements and other notes related thereto.

The second lien notes, as amended, place restrictions on the subsidiaries of the Issuer that would limit dividend distributions by these subsidiaries.

28

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING BALANCE SHEET
SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	6,950	$	—	$	66	$	—	$	7,016
Accounts receivable, net		—		80,847		—		2,886		—		83,733
Inventories		—		94,003		—		1,500		—		95,503
Due from parent		—		60,786		—		—		(60,786)		—
Other current assets		60,786		9,206		—		297		—		70,289
Total current assets		60,786		251,792		—		4,749		(60,786)		256,541
Property, plant and equipment, net		—		243,099		—		9		—		243,108
Investment in subsidiaries		(372,597)		14,162		—		—		358,435		—
Other assets		12		59,251		—		14		—		59,277
Total assets	$	(311,799)	$	568,304	$	—	$	4,772	$	297,649	$	558,926
LIABILITIES, REDEEMABLE COMMON STOCK,
COMMON STOCK, PAID-IN CAPITAL, DUE
FROM PARENT, ACCUMULATED DEFICIT AND
ACCUMULATED OTHER COMPREHENSIVE INCOME
Current liabilities
Current portion of long-term debt	$	—	$	50,070	$	—	$	—	$	—	$	50,070
Accounts payable		—		61,731		—		38		—		61,769
Due to (from) parent and affiliated
companies		60,786		11,696		—		(11,696)		(60,786)		—
Other accrued liabilities		—		112,385		—		2,268		—		114,653
Total current liabilities		60,786		235,882		—		(9,390)		(60,786)		226,492
Long-term debt		—		508,192		—		—		—		508,192
Other long-term liabilities		—		196,827		—		—		—		196,827
Redeemable common stock,
common stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income		(372,585)		(372,597)		—		14,162		358,435		(372,585)
Total liabilities, redeemable
common stock, common
stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income	$	(311,799)	$	568,304	$	—	$	4,772	$	297,649	$	558,926

29

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 29, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	1,593	$	—	$	258	$	—	$	1,851
Accounts receivable, net		—		88,111		—		4,569		—		92,680
Inventories		—		92,939		—		1,410		—		94,349
Due from parent		—		65,000		—		—		(65,000)		—
Other current assets		65,000		5,570		—		50		—		70,620
Total current assets		65,000		253,213		—		6,287		(65,000)		259,500
Property, plant and equipment, net		—		243,254		—		11		—		243,265
Investment in subsidiaries		(352,909)		14,216		—		—		338,693		—
Other assets		12		58,298		—		15		—		58,325
Total assets	$	(287,897)	$	568,981	$	—	$	6,313	$	273,693	$	561,090
LIABILITIES, REDEEMABLE COMMON STOCK,
COMMON STOCK, PAID-IN CAPITAL, DUE
FROM PARENT, ACCUMULATED DEFICIT AND
ACCUMULATED OTHER COMPREHENSIVE INCOME
Current liabilities
Current portion of long-term debt	$	—	$	3,975	$	—	$	—	$	—	$	3,975
Accounts payable		—		68,574		—		26		—		68,600
Due to (from) parent and affiliated
companies		65,000		10,799		—		(10,799)		(65,000)		—
Other accrued liabilities		—		119,690		—		2,412		—		122,102
Total current liabilities		65,000		203,038		—		(8,361)		(65,000)		194,677
Long-term debt		—		511,624		—		—		—		511,624
Other long-term liabilities		—		207,228		—		458		—		207,686
Redeemable common stock,
common stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income		(352,897)		(352,909)		—		14,216		338,693		(352,897)
Total liabilities, redeemable
common stock, common
stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income	$	(287,897)	$	568,981	$	—	$	6,313	$	273,693	$	561,090

30

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	612,963	$	—	$	31,977	$	(29,736)	$	615,204
Cost of sales		—		465,510		—		29,892		(29,803)		465,599
Gross profit		—		147,453		—		2,085		67		149,605
Selling, general and administrative
expenses		—		91,080		—		1,479		—		92,559
Operating income		—		56,373		—		606		67		57,046
Interest expense		—		42,092		—		—		—		42,092
Interest income		—		(2)		—		—		—		(2)
Debt extinguishment expense		—		25,101		—		—		—		25,101
Loss in equity investments		10,289		116		—		—		(10,405)		—
Other (income) expense		—		(576)		—		509		129		62
(Loss) income before income taxes		(10,289)		(10,358)		—		97		10,343		(10,207)
(Benefit) provision for income
taxes		—		(69)		—		151		—		82
Net loss		(10,289)		(10,289)		—		(54)		10,343		(10,289)
Other comprehensive loss
Change in retirement plans		(1,192)		(1,192)		—		—		1,192		(1,192)
Realized and unrealized losses
on derivatives		(569)		(569)		—		—		569		(569)
Total other comprehensive loss		(1,761)		(1,761)		—		—		1,761		(1,761)
Comprehensive loss	$	(12,050)	$	(12,050)	$	—	$	(54)	$	12,104	$	(12,050)

31

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	645,294	$	—	$	38,714	$	(39,733)	$	644,275
Cost of sales		—		576,968		—		39,815		(39,395)		577,388
Gross profit (loss)		—		68,326		—		(1,101)		(338)		66,887
Selling, general and administrative
expenses		—		106,354		—		1,553		—		107,907
Environmental expense insurance
recovery		—		(2,188)		—		—		—		(2,188)
Restructuring		—		27,175		—		—		—		27,175
Operating loss		—		(63,015)		—		(2,654)		(338)		(66,007)
Interest expense		—		45,168		—		—		(243)		44,925
Interest income		—		(54)		—		(243)		243		(54)
Loss in equity investments		111,320		2,203		—		—		(113,523)		—
Other expense (income)		—		971		—		(468)		(207)		296
Loss before income taxes		(111,320)		(111,303)		—		(1,943)		113,392		(111,174)
Provision for income taxes		—		17		—		129		—		146
Net loss		(111,320)		(111,320)		—		(2,072)		113,392		(111,320)
Other comprehensive loss
Change in retirement plans		(5,310)		(5,310)		—		—		5,310		(5,310)
Realized and unrealized losses
on derivatives		(2,292)		(2,292)		—		—		2,292		(2,292)
Total other comprehensive loss		(7,602)		(7,602)		—		—		7,602		(7,602)
Comprehensive loss	$	(118,922)	$	(118,922)	$	—	$	(2,072)	$	120,994	$	(118,922)

32

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	202,806	$	—	$	10,140	$	(10,076)	$	202,870
Cost of sales		—		154,494		—		9,965		(10,173)		154,286
Gross profit		—		48,312		—		175		97		48,584
Selling, general and administrative
expenses		—		29,391		—		468		—		29,859
Operating income (loss)		—		18,921		—		(293)		97		18,725
Interest expense		—		12,343		—		—		—		12,343
Interest income		—		(2)		—		—		—		(2)
Debt extinguishment expense		—		334		—		—		—		334
(Income) loss in equity
investments		(6,463)		92		—		—		6,371		—
Other income		—		(194)		—		(228)		104		(318)
Income (loss) before income taxes		6,463		6,348		—		(65)		(6,378)		6,368
(Benefit) provision for income
taxes		—		(115)		—		20		—		(95)
Net income (loss)		6,463		6,463		—		(85)		(6,378)		6,463
Other comprehensive loss
Change in retirement plans		(397)		(397)		—		—		397		(397)
Realized and unrealized losses
on derivatives		(1,581)		(1,581)		—		—		1,581		(1,581)
Total other comprehensive loss		(1,978)		(1,978)		—		—		1,978		(1,978)
Comprehensive income (loss)	$	4,485	$	4,485	$	—	$	(85)	$	(4,400)	$	4,485

33

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	211,180	$	—	$	13,158	$	(13,594)	$	210,744
Cost of sales		—		165,723		—		13,717		(13,484)		165,956
Gross profit (loss)		—		45,457		—		(559)		(110)		44,788
Selling, general and administrative
expenses		—		31,209		—		522		—		31,731
Environmental expense insurance
recovery		—		(2,188)		—		—		—		(2,188)
Restructuring		—		703		—		—		—		703
Operating income (loss)		—		15,733		—		(1,081)		(110)		14,542
Interest expense		—		14,901		—		—		(69)		14,832
Interest income		—		(42)		—		(69)		69		(42)
(Income) loss in equity
investments		(516)		424		—		—		92		—
Other income		—		(31)		—		(608)		(131)		(770)
Income (loss) before income taxes		516		481		—		(404)		(71)		522
(Benefit) provision for income
taxes		—		(35)		—		41		—		6
Net income (loss)		516		516		—		(445)		(71)		516
Other comprehensive loss
Change in retirement plans		(528)		(528)		—		—		528		(528)
Realized and unrealized losses
on derivatives		(1,523)		(1,523)		—		—		1,523		(1,523)
Total other comprehensive loss		(2,051)		(2,051)		—		—		2,051		(2,051)
Comprehensive loss	$	(1,535)	$	(1,535)	$	—	$	(445)	$	1,980	$	(1,535)

34

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Cash flows from operating activities:
Net loss	$	(10,289)	$	(10,289)	$	—	$	(54)	$	10,343	$	(10,289)
Adjustments to reconcile net loss
to net cash provided (used)
by operating activities:
Depreciation and amortization		—		22,811		—		2		—		22,813
Other		—		11,279		—		509		—		11,788
Change in assets and liabilities, net		15,935		(24,773)		—		248		(10,343)		(18,933)
Net cash provided (used) by
operating activities		5,646		(972)		—		705		—		5,379
Cash flows from investing activities:
Proceeds from sale of equipment		—		6		—		—		—		6
Additions to property, plant
and equipment		—		(20,266)		—		—		—		(20,266)
Net cash used by investing activities		—		(20,260)		—		—		—		(20,260)
Cash flows from financing activities:
Payments of senior secured
first lien notes payable		—		(305,000)		—		—		—		(305,000)
Proceeds from first lien
term loan		—		331,650		—		—		—		331,650
Payment of industrial
development bond		—		(2,650)		—		—		—		(2,650)
Debt acquisition costs		—		(7,235)		—		—		—		(7,235)
Payments relating to capital
lease obligations		—		(67)		—		—		—		(67)
Proceeds from old revolving line
of credit		—		155,300		—		—		—		155,300
Payments of old revolving line
of credit		—		(159,000)		—		—		—		(159,000)
Proceeds from new revolving line
of credit				129,100								129,100
Payments of new revolving line
of credit				(109,100)								(109,100)
Payments of State of Ohio loans		—		(987)		—		—		—		(987)
Due to (from) parent and affiliated
companies, net		3,424		(2,527)		—		(897)		—		—
Proceeds from issuance of
redeemable common stock		1,651		—		—		—		—		1,651
Payments to redeem common stock		(10,721)		—		—		—		—		(10,721)
Decrease in cash overdraft		—		(2,886)		—		—		—		(2,886)
Net cash (used) provided by
financing activities		(5,646)		26,598		—		(897)		—		20,055
Effect of foreign exchange rate
changes on cash and cash equivalents		—		(9)		—		—		—		(9)
Change in cash and cash equivalents		—		5,357		—		(192)		—		5,165
Cash and cash equivalents at
beginning of period		—		1,593		—		258		—		1,851
Cash and cash equivalents at
end of period	$	—	$	6,950	$	—	$	66	$	—	$	7,016

35

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Cash flows from operating activities:
Net loss	$	(111,320)	$	(111,320)	$	—	$	(2,072)	$	113,392	$	(111,320)
Adjustments to reconcile net loss
to net cash provided (used)
by operating activities:
Depreciation and amortization		—		91,166		—		3		—		91,169
Other		—		15,392		—		(468)		—		14,924
Change in assets and liabilities, net		118,309		10,355		—		(358)		(113,392)		14,914
Net cash provided (used) by
operating activities		6,989		5,593		—		(2,895)		—		9,687
Cash flows from investing activities:
Proceeds from sale of equipment		—		20		—		—		—		20
Additions to property, plant
and equipment		—		(9,015)		—		—		—		(9,015)
Net cash used by investing activities		—		(8,995)		—		—		—		(8,995)
Cash flows from financing activities:
Payments relating to capital
lease obligations		—		(46)		—		—		—		(46)
Proceeds from revolving line
of credit				190,300								190,300
Payments of revolving line of credit				(182,750)								(182,750)
Payments of State of Ohio loans		—		(935)		—		—		—		(935)
Proceeds from municipal debt		—		300		—		—		—		300
Due (from) to parent and affiliated
companies, net		(87)		(2,576)		—		2,663		—		—
Proceeds from issuance of
redeemable common stock		1,677		—		—		—		—		1,677
Payments to redeem common stock		(8,579)		—		—		—		—		(8,579)
Decrease in cash overdraft		—		(5,479)		—		—		—		(5,479)
Net cash (used) provided by
financing activities		(6,989)		(1,186)		—		2,663		—		(5,512)
Effect of foreign exchange rate
changes on cash and cash equivalents		—		22		—		—		—		22
Change in cash and cash equivalents		—		(4,566)		—		(232)		—		(4,798)
Cash and cash equivalents at
beginning of period		—		6,688		—		553		—		7,241
Cash and cash equivalents at
end of period	$	—	$	2,122	$	—	$	321	$	—	$	2,443

36

Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless stated to the contrary or the context requires otherwise, all references in this report to the Company refer to Paperweight Development Corp. (“PDC” or “Paperweight”) and its 100%‑owned subsidiaries. It includes Appvion, Inc., formerly known as Appleton Papers Inc., and its 100%-owned subsidiaries (collectively “Appvion”).

Overview

This discussion summarizes the significant factors affecting the consolidated operating results, financial condition and liquidity of PDC and Appvion for the quarter ended September 29, 2013. This discussion should be read in conjunction with the accompanying condensed consolidated financial statements and related notes. Reference should also be made to the Annual Report on Form 10-K for the year ended December 29, 2012, the consolidated financial statements and related notes included therein.

On June 28, 2013, Appvion completed a voluntary refinancing of a portion of its debt to extend debt maturities, reduce interest costs and increase financial flexibility and liquidity options. The refinancing included the execution of a new credit agreement providing for a $100 million five-year revolving line of credit due June 2018 and a $335 million first lien term loan due June 2019. Proceeds from the $335 million first lien term loan, less expenses and discounts, were $326.3 million. A portion of these proceeds was used to redeem $300.7 million of the 10.5% senior secured first lien notes due June 2015. On July 31, 2013, Appvion redeemed the remaining $4.3 million of these first lien notes. In conjunction with this $4.3 million repayment, a redemption premium of $0.2 million was paid and $0.1 million of unamortized deferred debt issuance costs and original issue discount were written off and included in debt extinguishment expense on the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 29, 2013.

The first lien term loan bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR, but not less than 1.25%, plus 4.5%, per annum. On July 30, 2013, Appvion fixed the interest rate at 7.24% on $100.0 million of the variable rate debt using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019.

During fourth quarter 2012, the Company adopted mark-to-market accounting for its pension and other postretirement benefit plans. Under mark-to-market accounting, all actuarial gains and losses are immediately recognized in net periodic cost annually in the fourth quarter of each year and whenever a plan is determined to qualify for a remeasurement during a fiscal year and, the market-related value of plan assets used in the cost calculations is equal to fair value. Under the Company’s previous accounting method, a portion of the actuarial gains and losses was deferred in accumulated other comprehensive loss on the Consolidated Balance Sheet and amortized into future periods. In addition, the previous method smoothed the investment gains and losses of the plan assets over a period of five years. While the Company’s historical policy of recognizing pension and other postretirement benefits expense was considered acceptable under accounting principles generally accepted in the United States, the Company believes this new policy to be preferable as it eliminates the delay in recognizing actuarial gains and losses within operating results. This change will also improve the transparency within the Company’s operating results by immediately recognizing the effects of economic and interest rate trends on plan investments and assumptions in the year these actuarial gains and losses are actually incurred. All prior periods presented were retrospectively adjusted to reflect the period-specific effects of applying the new accounting policy. See Note 1, Basis of Presentation, for further details relating to this accounting policy change.

In connection with this change in accounting policy for pension and other postretirement benefit plans, the Company also elected to change its method of accounting for certain costs included in inventory. The Company elected to exclude the amount of its pension and other postretirement benefit costs applicable to former employees from inventoriable costs. While the Company’s historical policy of including all pension and other postretirement benefits costs, excluding those charged directly to selling, general and administrative ("SG&A") expenses, as a component of inventoriable costs was acceptable, it believes the new policy is preferable as inventoriable costs will only include costs that are directly attributable to current employees involved in the production of inventory. All prior periods presented were retrospectively adjusted to reflect the period-specific effects of applying the new accounting policy. See Note 1, Basis of Presentation, for further details relating to this accounting policy change.

37

Financial Highlights

Third quarter 2013 net sales of $202.9 million were $7.8 million, or 3.7%, lower than third quarter 2012 net sales. Third quarter 2013 shipment volumes were approximately 4% lower than the same period last year. Third quarter 2013 thermal papers net sales of $105.7 million were $0.9 million lower despite a volume increase of approximately 2%. Third quarter 2013 carbonless papers net sales of $88.8 million were $7.1 million, or 7.4%, lower than net sales for the prior year quarter on a volume decrease of approximately 9%. The Company has completed the full-year cycle following its decision to exit certain non-strategic international markets. While the Company’s carbonless paper sales are expected to decline, the rate of decline is more likely to reflect historical market trends of 7% to 9%. Third quarter 2013 Encapsys® net sales of $12.4 million were 3.1% lower than third quarter 2012 net sales. However, net sales to external customers were 1.2% higher on a 6% reduction in sales volume.

Third quarter 2013 cost of sales of $154.3 million was $11.6 million lower than third quarter 2012. Included in the prior year cost of sales was a $6.8 million settlement charge relating to the withdrawal from the multi-employer pension plan as negotiated by the West Carrollton, Ohio bargaining workforce. Third quarter 2012 results also included $5.1 million of restructuring and other expenses related to the cessation of papermaking in West Carrollton and the Company’s transition to the 15-year base paper agreement. Current quarter SG&A expenses were $1.9 million, or 6.0%, less than the previous year quarter largely due to reduced expense associated with incentive compensation as well as lower distribution costs.

The Company recorded current quarter net income of $6.5 million compared to net income of $0.5 million recorded in the prior year quarter. Third quarter 2012 net income included a $2.2 million environmental expense insurance recovery. The Company’s results for the third quarter and first nine months of 2013 include an out-of-period adjustment related to the correction of an overstatement of accounts payable related to prior periods which increased earnings $1.5 million and $0.9 million, respectively. See Note 1 to the Condensed Consolidated Financial Statements.

Comparison of Unaudited Results of Operations for the Quarters Ended September 29, 2013 and September 30, 2012

	Paperweight Development Corp. and Subsidiaries and
	Appvion, Inc. and Subsidiaries
		For the Quarter Ended
		September 29,			September 30,			Increase
		2013			2012			(Decrease)
		(dollars in millions)
Net sales		$	202.9		$	210.7			(3.7)	%
Cost of sales			154.3			165.9			(7)	%
Gross profit			48.6			44.8			8.5	%
Selling, general and administrative expenses			29.9			31.8			(6)	%
Restructuring			-			0.7			(100)	%
Environmental expense insurance recovery			-			(2.2)			(100)	%
Operating income			18.7			14.5			29	%
Interest expense, net			12.3			14.8			(16.9)	%
Debt extinguishment expense			0.3			-			nm
Other non-operating income, net			(0.3)			(0.8)			(62.5)	%
Income before income taxes			6.4			0.5			nm
Benefit for income taxes			(0.1)			-			(100)	%
Net income		$	6.5		$	0.5			nm
Comparison as a percentage of net sales
Cost of sales			76.0	%		78.7	%		(2.7)	%
Gross margin			24.0	%		21.3	%		2.7	%
Selling, general and administrative expenses			14.8	%		15.1	%		(0.3)	%
Operating margin			9.2	%		6.9	%		2.3	%
Income before income taxes			3.2	%		0.2	%		3.0	%
Net income			3.2	%		0.2	%		3.0	%

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Net sales for third quarter 2013 were $202.9 million, a decrease of $7.8 million, or 3.7%, compared to the prior year period. Thermal papers net sales and carbonless papers net sales were down 0.8% and 7.4%, respectively. Encapsys net sales were 3.1% lower than the prior year quarter. Within the paper business, shipment volumes were lower by approximately 4%. Total Encapsys volume was approximately 8% lower than third quarter 2012, of which, volumes to external customers was approximately 6% lower.

Third quarter 2013 operating income of $18.7 million improved from third quarter 2012 operating income of $14.5 million. The Company’s financial results for third quarter 2013 were positively impacted by improved product mix totaling $1.7 million across all business segments. The Company also benefited from favorable raw materials and utilities pricing of $1.8 million. A $2.4 million reduction in manufacturing costs included lower transition costs related to the 15-year base paper supply agreement, as well as lower depreciation expense, offsetting unfavorable manufacturing operations. These reductions were partially offset by reduced operating income of $2.8 million resulting from lower shipment volumes. Third quarter 2012 cost of sales also included the $6.8 million settlement charge relating to the withdrawal from the multi-employer pension plan negotiated by the West Carrollton bargaining workforce. The prior year quarter also included $1.6 million of restructuring expense and other costs related to ceasing papermaking operations in Ohio. This $1.6 million charge included restructuring expense of $0.7 million for employee termination costs and fixed asset decommissioning expense and a $0.9 million noncash charge to cost of sales for accelerated depreciation. Third quarter 2012 financial results also included a $2.2 million environmental expense insurance recovery. Third quarter 2013 SG&A expenses were $1.9 million lower than the previous year quarter due to reduced expense associated with incentive compensation as well as lower distribution costs. 

The Company recorded net income of $6.5 million in third quarter 2013 compared to third quarter 2012 net income of $0.5 million. Current quarter net interest expense of $12.3 million was $2.5 million less than in third quarter 2012. Debt extinguishment expense of $0.3 million was also recorded during third quarter 2013 as a result of the June 2013 voluntary refinancing. Non-operating income of $0.3 million was recorded during third quarter 2013, compared to $0.8 million of non-operating income in the same quarter last year, largely due to a $0.5 million swing in foreign currency exchange.

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Comparison of Unaudited Results of Operations for the Nine Months Ended September 29, 2013 and September 30, 2012

	Paperweight Development Corp. and Subsidiaries and
	Appvion, Inc. and Subsidiaries
		For the Nine Months Ended
		September 29,			September 30,			Increase
		2013			2012			(Decrease)
		(dollars in millions)
Net sales		$	615.2		$	644.3			(4.5)	%
Cost of sales			465.6			577.4			(19.4)	%
Gross profit			149.6			66.9			123.6	%
Selling, general and administrative expenses			92.6			107.9			(14.2)	%
Restructuring			-			27.2			(100)	%
Environmental expense insurance recovery			-			(2.2)			(100)	%
Operating income (loss)			57.0			(66.0)			186.4	%
Interest expense, net			42.1			44.9			(6.2)	%
Debt extinguishment expense			25.1			-			nm
Other non-operating expense, net			-			0.3			(100)	%
Loss before income taxes			(10.2)			(111.2)			90.8	%
Provision for income taxes			0.1			0.1			-
Net loss		$	(10.3)		$	(111.3)			90.7	%
Comparison as a percentage of net sales
Cost of sales			75.7	%		89.6	%		(13.9)	%
Gross margin			24.3	%		10.4	%		13.9	%
Selling, general and administrative expenses			15.0	%		16.7	%		(1.7)	%
Operating margin			9.3	%		(10.2)	%		19.5	%
Loss before income taxes			(1.7)	%		(17.3)	%		15.6	%
Net loss			(1.7)	%		(17.3)	%		15.6	%

Net sales for the first nine months of 2013 were $615.2 million, a decrease of $29.1 million, or 4.5%, compared to the first nine months of 2012. Net sales growth of 5.9% within the thermal papers segment, on a shipment volume increase of approximately 8%, partially offset lower net sales and shipment volumes within the carbonless papers and Encapsys business segments.

The Company recorded operating income of $57.0 million for the first nine months of 2013. This compared to an operating loss of $66.0 million for the same period last year. Improved product mix, favorable raw materials and utilities pricing and favorable manufacturing costs, which included lower transition costs related to the 15-year base paper supply agreement, as well as lower depreciation expense, improved current year operating income by $16.0 million. That improvement was partially offset by a $7.5 million reduction of operating income due to lower shipment volumes. The operating loss recorded for the first nine months of 2012 included $102.0 million of restructuring expense and other costs related to ceasing papermaking operations in Ohio. Noncash expense of $63.1 million for accelerated depreciation related to the decommissioning of papermaking assets as well as an $11.1 million noncash write-down of papermaking stores and spare parts inventories to lower of cost or market were included in cost of sales. A $0.6 million noncash write-off of construction in progress was also included in cost of sales. Third quarter 2012 year-to-date cost of sales also included the $6.8 million settlement charge relating to the withdrawal from the multi-employer pension plan negotiated by the West Carrollton bargaining workforce. Year-to-date 2012 restructuring expense of $27.2 million included $25.3 million of employee termination benefits, including severance, related benefits and pension costs and $1.9 million of decommissioning and other costs. The Company also recorded a $2.2 million environmental expense insurance recovery during this period of 2012. Year-to-date 2013 SG&A expenses were $15.3 million lower than the same previous year period due to reduced expense associated with incentive and deferred compensation, distribution costs and retiree benefits. This was partially offset by higher salaries expense and an increase in research trial costs. In addition, prior year SG&A expenses included $7.2 million of business combination transaction costs.

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The Company reported a net loss of $10.3 million for the first nine months of 2013 compared to a net loss of $111.3 million reported last year. The 2013 loss includes $25.1 million of debt extinguishment expense recorded as a result of the June 2013 voluntary refinancing. Year-to-date 2013 net interest expense of $42.1 million was $2.8 million less than during the same period last year.

Business Segment Discussion

Third quarter 2013 net sales within the Company’s paper business were $194.4 million or $8.0 million lower than third quarter 2012 net sales. Net sales within the Company’s paper business during the first nine months of 2013 were $589.9 million or $30.8 million lower than the same period last year. Third quarter 2013 operating income of $18.5 million compared to third quarter 2012 operating income of $11.8 million. Operating income during the first nine months of 2013 was $56.7 million compared to an operating loss of $59.0 million for the same period last year. The year-on-year operating income variance was the result of the following (dollars in millions):

	For the Three	For the Nine
	Months Ended	Months Ended
	Sept. 29, 2013 v.	Sept. 29, 2013 v.
	the Three Months	the Nine Months
	Ended Sept. 30, 2012	Ended Sept. 30, 2012
Restructuring and other related costs	$                                   1.6	$                                102.0
Favorable price and mix	0.6	8.3
Favorable raw materials and utilities pricing	2.0	5.2
Lower selling, general and administrative expense and other	1.6	4.3
Favorable manufacturing costs	3.1	3.4
Lower shipment volumes	(2.2)	(7.5)
	$                                  6.7	$                              115.7

Carbonless Papers

•Third quarter 2013 carbonless net sales totaled $88.8 million, a decrease of $7.1 million, or 7.4%, from prior year. Shipment volumes during third quarter 2013 were approximately 9% lower than the same period last year. The Company has completed the full-year cycle following its decision to exit certain non-strategic international markets. While the Company’s carbonless paper sales are expected to decline, the rate of decline is more likely to reflect historical market trends of 7% to 9%. Sequentially, third quarter 2013 carbonless net sales were slightly higher than the previous quarter on comparatively flat shipment volumes. During the first nine months of 2013, carbonless net sales totaled $266.8 million, a decrease of $48.9 million, or 15.5% from prior year. On a year-to-date basis, 2013 carbonless shipment volumes were approximately 20% lower than last year. During the first nine months of 2013, the negative impact of lower shipment volumes was partially offset by the benefit realized from improved pricing.

•Third quarter 2013 carbonless papers operating income of $10.8 million compared to $10.0 million of operating income reported in third quarter 2012. Last year’s quarter included $0.9 million of restructuring and other related costs and $1.4 million of one-time transition costs related to the 15-year base paper supply agreement. During the first nine months of 2013, the Company reported operating income of $30.4 million compared to a $30.8 million operating loss for the same period in 2012. The prior year nine-month operating loss included $56.1 million of restructuring and other related costs and $2.8 million of one-time transition costs related to the base paper supply agreement.

Thermal Papers

•Third quarter 2013 thermal papers net sales totaled $105.7 million, a decrease of $0.8 million, or 0.8%, over the same prior year period. Shipment volumes were up for the period by approximately 2% when compared to third quarter 2012. Current quarter tag, label and entertainment (“TLE”) shipment volumes increased approximately 4% while receipt paper volumes were flat. Sequentially, third quarter 2013 thermal papers net sales were slightly higher than the previous quarter on increased shipment volumes of nearly 4%. During the first nine months of 2013, thermal papers net sales totaled $323.0 million, an increase of $18.0 million, or 5.9% from prior year. On a year-to-date basis, 2013 thermal shipment volumes were approximately 8% higher than last year, with receipt paper volumes growing by nearly 10% and TLE volumes increasing 6%.

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•The thermal papers segment recorded operating income of $7.7 million for third quarter 2013. This compared to third quarter 2012 operating income of $1.8 million, which included a $6.8 million settlement charge relating to the negotiated withdrawal from the multi-employer pension plan covering the West Carrollton bargaining workforce. During the first nine months of 2013, operating income of $26.3 million was reported compared to a $28.2 million operating loss for the same period in 2012. The prior year nine-month operating loss included $45.9 million of restructuring and other related costs and $5.4 million of one-time transition costs related to the 15-year base paper supply agreement, as well as the previously-mentioned $6.8 million pension plan settlement charge.

Encapsys

•Encapsys third quarter 2013 net sales of $12.4 million were $0.4 million, or 3.1%, lower than third quarter 2012. Current quarter external net sales were 1.2% higher on reduced shipment volumes of approximately 6%. Year-to-date 2013 net sales of $38.5 million were $0.5 million, or 1.3%, lower than the same period last year. Current year-to-date external net sales were 7.4% higher on increased external shipment volumes of over 3%. Both current year periods benefited from improved product price.

•Encapsys third quarter 2013 operating income was $2.8 million compared to $3.4 million during the same quarter of 2012. Operating income for the nine months ended September 29, 2013 was $9.5 million. During the same period last year, Encapsys reported operating income of $8.4 million. Both current year periods benefited from improved product mix.

Unallocated Corporate Charges

•Unallocated corporate charges were $2.0 million for third quarter 2013 and $0 for third quarter 2012. Third quarter 2012 benefited from a $2.2 million environmental expense insurance recovery recorded during the period. Year-to-date 2013 expense was $7.2 million compared to $13.1 million for the first nine months of 2012. Prior year spending included $7.2 million of costs associated with the discontinued business combination transaction.

Liquidity and Capital Resources

Overview. The Company’s primary sources of liquidity and capital resources are cash provided by operations and credit available under its revolving credit facility. The Company expects that cash on hand, internally generated cash flow and available credit from its revolving credit facility, will provide the necessary funds for the reasonably foreseeable operating and recurring cash needs (e.g., working capital, debt service, other contractual obligations and capital expenditures). At September 29, 2013, the Company had $7.0 million of cash and approximately $67.1 million of unused borrowing capacity under its revolving credit facility. The revolving credit facility had an outstanding balance of $20.0 million and net debt (total debt less cash) was $551.2 million. Despite the following significant cash payments made during the first nine months of 2013, $29.4 million of debt interest, $24.1 million of refinancing costs, $20.3 million of capital expenditures, $12.5 million of contributions to the pension plan and $9.1 million of net redemptions of common stock, net debt increased by only $37.5 million since year-end 2012.

The Company was in compliance with all debt covenants at September 29, 2013, and is forecasted to remain compliant for the next 12 months. The Company’s ability to comply with the financial covenants in the future depends on achieving forecasted operating results and operating cash flows. The Company’s failure to comply with its covenants, or an assessment that it is likely to fail to comply with its covenants, could lead the Company to seek amendments to, or waivers of, its financial covenants. The Company cannot provide assurance that it would be able to obtain any amendments to or waivers of the covenants. In the event of noncompliance with its debt covenants, if the lenders will not amend or waive the covenants, the debt would be due and the Company would need to seek alternative financing. The Company cannot provide assurance that it would be able to obtain alternative financing. If the Company were not able to secure alternative financing, this would have a material adverse impact on the Company.

Cash Flows from Operating Activities-Paperweight Development Corp. and Subsidiaries. Net cash provided by operating activities during the first nine months of 2013 was $5.4 million compared to $9.7 million of net cash provided during the same nine-month period last year. Net loss of $10.3 million, adjusted for noncash charges, provided $24.3 million in operating cash for the period. Noncash charges included $22.8 million of depreciation and amortization, $2.0 million of noncash employer matching contributions to the KSOP and $3.0 million of other noncash charges. Net loss was also adjusted for $6.8 million of noncash debt refinancing costs related to the June 2013 voluntary refinancing. An increase in working capital used $4.2 million of cash. A decrease in the pension liability, which included $12.5 million of pension plan contributions, resulted in a $12.1 million net use of cash. Other uses of cash totaled $2.6 million.

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The primary component of the change in working capital was an $8.3 million decrease in accounts payable and other accrued liabilities. During the current year period there was an $8.0 million reduction in accrued compensation largely due to the first quarter payment of bonuses earned in 2012, a $3.9 million reduction in accrued customer rebates and a $3.0 million payment of vested deferred compensation. This was offset by a $10.0 million increase in accrued interest related to debt interest due in October and December. Also during the nine months ended September 29, 2013, cash was used as inventories increased $1.3 million and other current assets increased $3.9 million. The other component of the change in working capital was a $9.3 million decrease in accounts receivable.

Cash Flows from Operating Activities-Appvion, Inc. and Subsidiaries.  Net cash used by operating activities during the first nine months of 2013 was $0.3 million. Cash provided by operating activities during the first nine months of 2012 was $2.7 million. As Appvion is the primary operating subsidiary of the Company, a majority of the components of cash flows from operating activities are the same as those discussed above for Paperweight Development Corp. and Subsidiaries. Under an arbitration award with NCR related to remediation of the Lower Fox River, Appvion agreed to share defense and liability costs with NCR and therefore the funding under this agreement is included in operating activities. This is the main driver of the additional changes in cash flows from operating activities.

Cash Flows from Investing Activities-Paperweight Development Corp and Subsidiaries and Appvion, Inc. and Subsidiaries.During the first nine months of 2013, $20.3 million of cash was used for investing activities, all of which was for the acquisition of property, plant and equipment. This compares to $9.0 million used during the first nine months of 2012, all of which was used for the acquisition of property, plant and equipment.

Cash Flows from Financing Activities-Paperweight Development Corp. and Subsidiaries. Net cash provided by financing activities during the first nine months of 2013 was $20.1 million compared to $5.5 million of cash used during the prior year. During third quarter, $2.7 million of secured variable rate industrial development bonds, due August 2013, were repaid. During the first three quarters of 2013, the Company made mandatory debt repayments of $1.0 million, plus interest, on its State of Ohio loans. The Company also borrowed $155.3 million and repaid $159.0 million on its old revolving credit facility, as amended. The Company borrowed $129.1 million and repaid $109.1 million on its new revolving credit facility.

Year-to-date 2013 proceeds from the issuance of PDC redeemable common stock totaled $1.6 million. The ESOP trustee purchased this stock using pre-tax deferrals, rollovers and loan payments made by employees during the first six months of 2013. Payments to redeem PDC stock were $10.7 million.

Cash overdrafts decreased $2.9 million during the first nine months of 2013. Cash overdrafts represent short-term obligations, in excess of deposits on hand, which have not yet cleared through the banking system. Fluctuations in the balance are a function of quarter-end payment patterns and the speed with which the payees deposit the checks.

On June 28, 2013, Appvion completed a voluntary refinancing of a portion of its debt to extend debt maturities, reduce interest costs and increase financial flexibility and liquidity options. The refinancing included the execution of a new credit agreement providing for a $100 million five-year revolving line of credit due June 2018 and a $335 million first lien term loan due June 2019. The new line of credit replaced the five-year, $100 million revolving credit facility due February 2015. The new revolving credit facility provides for up to $100 million of revolving loans including a letter of credit sub-facility of up to $25 million and a swing line sub-facility of up to $5 million. Appvion’s borrowings under the revolving credit facility bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR plus 4.5%, per annum.

Proceeds from the $335 million first lien term loan, less expenses and discounts, were $326.3 million. These proceeds were used to redeem $300.7 million of the 10.5% senior secured first lien notes due June 2015, pay $1.1 million of interest due on the notes, pay $18.1 million of note premiums and costs associated with the note redemption, repay $6.0 million of the old revolver and pay $0.4 million of interest and fees due on the old revolver. The $18.1 million is included in debt extinguishment expense on the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 29, 2013. In addition, there was a cash outlay of $7.2 million for debt acquisition costs. As a result of the refinancing, $6.7 million of unamortized deferred debt issuance costs and original issue discount associated with the redeemed senior secured first lien notes and old revolver were written off and included in debt extinguishment expense.

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The first lien term loan bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR, but not less than 1.25%, plus 4.5%, per annum. On July 30, 2013, Appvion fixed the interest rate at 7.24% on $100.0 million of this variable rate debt using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. The term loan amortizes in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount, with the balance payable on June 28, 2019. Also, within five business days after the year-end financial statements have been filed, Appvion shall prepay an aggregate principal amount of the term loan equal to the excess, if any, of (a) 50% of defined excess cash flow, provided that such percentage shall be reduced to (1) 25% based upon Appvion achieving a consolidated leverage ratio of less than 3.50 to 1.0 but greater than or equal to 2.50 to 1.0 and (2) 0% based upon Appvion achieving a consolidated leverage ratio of less than 2.50 to 1.0 minus (b) the aggregate amount of all prepayments of the revolving credit line which constitute permanent reductions of the revolving credit facility and all optional prepayments of the first lien term loan made during the year.

On July 31, 2013, Appvion redeemed the remaining $4.3 million of 10.5% senior secured first lien notes due June 2015, plus interest and $0.2 million of debt extinguishment expense. In addition, $0.1 million of unamortized deferred debt issuance costs and original issue discount were written off and included in debt extinguishment expense.

The new credit agreement ranks senior in right of payment to all existing and future subordinated indebtedness of Appvion and is secured by security interests in substantially all of the property and assets of Appvion and the debt guarantors. As noted above, the maturity date of the revolving credit facility is June 28, 2018 and the maturity date of the first lien term loan is June 28, 2019. If any amount of the second lien notes remains outstanding on June 30, 2015, then the maturity date of the revolving credit facility shall automatically be deemed to be June 30, 2015 and if any amount of the second lien notes remains outstanding on September 15, 2015, the maturity date of the first lien term loan shall automatically be deemed to be September 15, 2015. The new credit agreement is unconditionally, and jointly and severally, guaranteed by PDC and Appvion Canada, Ltd. It contains affirmative and negative covenants customary for similar credit facilities, which among other things, require Appvion to meet a minimum fixed charge coverage ratio under certain circumstances and restricts Appvion’s ability and the ability of Appvion’s subsidiaries, subject to certain exceptions, to incur additional indebtedness and liens, engage in sale and leaseback transactions, make investments, make loans and advances, transact certain asset sales, engage in mergers, acquisitions, consolidations, liquidations and dissolutions, pay dividends or make other payments in respect of equity interests and other restricted payments, engage in certain transactions with affiliates, limit capital expenditures and make prepayments, redemptions and repurchases of other indebtedness.

Cash Flows from Financing Activities-Appvion,  Inc. and Subsidiaries. Net cash provided by financing activities during the first nine months of 2013 was $25.7 million compared to cash provided of $1.5 million during the prior year period. As Appvion is the primary operating subsidiary of the Company, a majority of the components of cash flows from financing activities are the same as those discussed above for Paperweight Development Corp. and Subsidiaries. As Appvion is indemnified by PDC for payments made under the arbitration award with NCR related to the remediation of the Lower Fox River, funds due from PDC are recorded as a financing activity. The main driver of the additional changes in cash flows from financing activities is due to this change in due from PDC.

New Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date." This guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date as the sum of the following: (a) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) Any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation. ASU 2013-04 is effective for the Company's annual and interim periods beginning after December 15, 2013, though early adoption is permitted, and retrospective application is required for all prior periods presented. The Company is currently evaluating the effects, if any, the adoption will have on its consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." This update adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The updated standard is effective prospectively for the Company's annual and interim periods beginning after December 15, 2012. As required, the Company adopted this guidance beginning in the first quarter ended March 31, 2013 and the disclosures have been included in its condensed consolidated financial statements in Note 18, Accumulated other Comprehensive Income.

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In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” It provides the option to perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not an indefinite-lived intangible asset is impaired. ASU 2012‑02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, though early adoption is permitted. As required, the Company adopted this guidance beginning in the first quarter ended March 31, 2013, and there was no impact to the Company’s condensed consolidated financial statements as a result of adoption.

In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” It expands required disclosures related to the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. It requires disclosure of net and gross positions in covered financial instruments and derivative instruments which are either (1) offset in accordance with ASC Sections 210-20-45 or 815-10-45, or (2) subject to an enforceable netting or other similar arrangement. To clarify the guidance provided in ASU 2011-11, the FASB issued ASU No. 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities" in January 2013. It clarifies the scope of the guidance to include derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to master netting or similar arrangements. The amendments are effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The Company will be required to adopt this guidance as of its fiscal year beginning December 29, 2013 and is evaluating the effects, if any; the adoption will have on its consolidated financial statements.

Item 3—Quantitative and Qualitative Disclosures about Market Risk

For information regarding quantitative and qualitative disclosures about market risk, see the Annual Report on Form 10‑K for the year ended December 29, 2012. Other than with respect to the update below, there have been no material changes in the quantitative or qualitative exposure to market risk from that described in the Form 10‑K.

Interest Rate Risk. As a result of the June 28, 2013 voluntary refinancing, the Company increased its variable rate debt to $341.0 million. The new $335.0 million first lien term loan bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR, but not less than 1.25%, plus 4.5%, per annum. The current annual interest rate charged is 5.75%. On July 30, 2013, Appvion fixed the interest rate at 7.24% on $100.0 million of this variable rate debt using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. 

Item 4—Controls and Procedures

Paperweight Development Corp. and Subsidiaries

Changes in Internal Controls over Financial Reporting

There have been no changes in PDC’s internal control over financial reporting during PDC’s third quarter 2013 that have materially affected, or are reasonably likely to materially affect, PDC’s internal control over financial reporting.

Disclosure Controls and Procedures

PDC maintains a set of disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports filed or submitted under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely discussion regarding required disclosure. PDC carried out an evaluation, under the supervision and with the participation of management, including the CEO and CFO, of the effectiveness, design and operation of PDC’s disclosure controls and procedures. Based on that evaluation, the CEO and CFO of PDC concluded that its disclosure controls and procedures are effective as of the end of the period covered by this report.

Appvion, Inc. and Subsidiaries

Changes in Internal Controls over Financial Reporting

There have been no changes in Appvion’s internal control over financial reporting during Appvion’s third quarter 2013 that have materially affected, or are reasonably likely to materially affect, Appvion’s internal control over financial reporting.

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Disclosure Controls and Procedures

Appvion maintains a set of disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports filed or submitted under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the CEO and CFO, as appropriate, to allow timely discussion regarding required disclosure. Appvion carried out an evaluation, under the supervision and with the participation of management, including the CEO and CFO, of the effectiveness, design and operation of Appvion’s disclosure controls and procedures. Based on that evaluation, the CEO and CFO of Appvion concluded that its disclosure controls and procedures are effective as of the end of the period covered by this report.

PART II – OTHER INFORMATION

Item 1.  Legal Proceedings

Information regarding legal proceedings is contained in Note 12 to the Condensed Consolidated Financial Statements contained in this report and is incorporated herein by reference.

Item 1A.Risk Factors

Other than with respect to the updated risk factors below, there have been no material changes in the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 29, 2012.

Appvion is obligated to share defense and liability costs with NCR as determined by a 1998 agreement and a 2005 arbitration determination (“the Arbitration”).

On April 10, 2012, the United States District Court for the Eastern District of Wisconsin granted Appvion’s motion for summary judgment and dismissed all claims against Appvion in the enforcement action. The decision establishes that Appvion is no longer a potentially responsible party (“PRP”), no longer liable under the federal Comprehensive Environmental Response, Compensation, and Liability Act, (“CERCLA” or “Superfund”), no longer considered a legal successor to NCR’s liabilities, and no longer required to comply with the 106 Order commanding remediation of the Lower Fox River. In addition, on July 3, 2012, the United States District Court for the Eastern District of Wisconsin determined that Appleton Coated Paper Company and NCR did not arrange for the disposal of hazardous waste within the meaning of CERCLA.

The rulings do not affect Appvion’s rights or obligations to share defense and liability costs with NCR in accordance with the terms of the Arbitration arising out of Appvion’s acquisition of assets from NCR in 1978 while it was a subsidiary of B.A.T Industries Limited (“BAT”). Appvion and BAT have joint and several liability under the Arbitration for certain costs relating to the Lower Fox River and other potential future sites. Appvion has initiated the dispute resolution procedures outlined in the 1998 agreement. Issues in dispute include the scope of Appvion’s liability under the agreement, if any, as well as funding requests and supporting documentation from NCR (the “Dispute Resolution”). The current carrying amount of Appvion’s liability under the Arbitration is $60.8 million, which represents Appvion’s best estimate of potential amounts to be paid. On June 8, 2012, BAT served AWA with a claim filed in a United Kingdom court, seeking a declaration that BAT is indemnified by AWA from and against any losses relating to the Lower Fox River. On June 26, 2012, BAT served Appvion with the same claim, seeking a declaration that BAT is indemnified by Appvion. Appvion intends to vigorously defend against this claim and has filed an application challenging the jurisdiction of the United Kingdom court.

Prior to the ruling in the above enforcement action, the United States Environmental Protection Agency (“EPA”) and Wisconsin Department of Natural Resources (“DNR”) claimed Appvion was a PRP with respect to historic discharges of polychlorinated biphenyls (“PCBs”) into the Lower Fox River in Wisconsin. Carbonless paper containing PCBs was manufactured at what is currently the Appleton plant from 1954 until 1971. During this period, wastewater containing PCBs was discharged into the Lower Fox River from a publicly-owned treatment works, from the Combined Locks, Wisconsin paper mill and from other local industrial facilities. Wastewater from the Appleton plant was processed through the publicly-owned treatment works. Appvion purchased the Appleton plant and the Combined Locks, Wisconsin paper mill from NCR in 1978, long after the use of PCBs in the manufacturing process was discontinued. The EPA issued an administrative order in November 2007, directing the PRPs to implement the remedial action of the Fox River pursuant to which certain of the PRPs commenced remediation in 2008. The various PRPs, including NCR, the EPA and the DNR continue to contest the scope, extent and costs of the remediation as well as the appropriate bases for determining the parties’ relative shares of the remediation cost.

The rulings also do not affect either of the two indemnification agreements entered in 2001 wherein AWA agreed to indemnify PDC and PDC agreed to indemnify Appvion for costs, expenses and liabilities related to certain governmental and third-party environmental claims (including certain claims under the Arbitration), which are defined in the agreements as the Fox River Liabilities. Appvion has recorded a $60.8 million environmental indemnification receivable as of September 29, 2013.

46

Appvion cannot predict the final outcomes of the various proceedings that will determine the portion of NCR’s remediation costs that it may be obligated to share under the Arbitration, nor can it anticipate that AWA will have sufficient resources to support the indemnification agreements. If the Arbitration obligation exceeds AWA’s financial capability, and BAT fails to meet its obligation under Arbitration, Appvion could be required to pay such excess, which could materially adversely affect its business, financial condition and results of operations.

Appvion’s former parent, AWA, may fail to comply with its indemnification obligations related to the acquisition of Appvion.

As amended in, and as limited by the terms of the purchase agreement relating to the acquisition of Appvion, AWA and two of its affiliates have agreed to indemnify PDC and Appvion for certain losses resulting from (1) inaccuracies in the environmental representations and warranties made by AWA and its affiliates, (2) certain known environmental matters that existed at the closing of the acquisition, (3) environmental matters related to the businesses of Newton Falls, Inc., Appleton Coated LLC and several other of the Company’s former affiliates and subsidiaries and (4) environmental matters relating to the real property on which the Company’s former Camp Hill, Pennsylvania plant and the Company’s current distribution center are located that existed prior to its sale of the Camp Hill plant to a third-party.

AWA has also agreed, subject to certain limitations, to indemnify Appvion and PDC for specified environmental liabilities relating to the contamination of the Lower Fox River and other potential future sites. If the indemnified matters result in significant liabilities for the Company, and AWA and/or its affiliates are unable or unwilling to honor these indemnification obligations, the Company could be required to pay for these liabilities, which could materially adversely affect its business, financial condition and results of operations.

The Company has a substantial amount of indebtedness outstanding and, as a result, it is operating as a highly leveraged company.

The Company’s total debt at September 29, 2013, was approximately $558 million. For a description of the components of the Company’s debt, as well as discussion of the June 28, 2013 voluntary refinancing of a portion of its debt, see Note 15 of the Notes to Condensed Consolidated Financial Statements. This large amount of indebtedness could:

•         make it more difficult for the Company to satisfy its financial obligations with respect to the revolving credit facility, the first lien term loan, the second lien notes and senior subordinated notes, as amended;

•         require the Company to dedicate a substantial portion of cash flow from operations to payments on indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, acquisitions, research and development or general corporate activities;

•         limit the Company’s ability to obtain additional financing for working capital, capital expenditures, acquisitions, research and development or general corporate purposes and

•         limit the Company’s flexibility in planning for, or reacting to, changes in its businesses and the industries in which it operates.

Furthermore, although the Company’s ability to borrow money is restricted by the terms of its various debt agreements, it may be possible for the Company to incur even more debt and, if it does so, these risks could intensify.

The Company’s ability to service its debt is dependent on its future operating results and the Company cannot be sure that it will be able to meet its debt obligations as they come due.

The Company’s ability to meet its payment obligations, relating to its indebtedness, is subject to a variety of factors, including, for example, changes in:

•         demand for and selling prices of the Company’s products;

•         competition;

•         costs of raw materials and operating costs;

•         the rate of decline in sales of carbonless paper products;

•         environmental regulations and

•         general economic conditions.

47

The Company expects to use cash flow from operations to pay its expenses and scheduled interest and principal payments due under its outstanding indebtedness. Its ability to make these payments depends on its future performance, which is affected by financial, business, economic and other factors, many of which the Company cannot control. The recent recession and credit crisis and related turmoil in the global financial system has had and may continue to have an adverse effect on the Company’s business, financial condition, results of operations and cash flows. Consequently, its business may not generate sufficient cash flow from operations in the future and its anticipated growth in revenue and cash flow may not be realized, either or both of which could result in the Company being unable to repay or pay interest on its indebtedness or to fund other liquidity needs. If the Company does not have enough money, it may be required to refinance all or part of its then-existing debt, sell assets or borrow more money. The Company cannot make any assurances that it will be able to accomplish any of these alternatives on terms acceptable to it, or at all. In addition, the terms of existing or future debt agreements, including the first lien term loan, the revolving credit facility and the indentures governing the notes, may restrict the Company from adopting any of these alternatives. The failure to generate sufficient cash flow or to achieve any of these alternatives could significantly adversely affect the value of its indebtedness and its ability to pay the amounts due. In addition, if the Company defaults in the payment of amounts due, it would give rise to an event of default under the note indentures and possible acceleration of amounts due under its outstanding indebtedness. In the event of any acceleration, there can be no assurance that the Company will have enough cash to repay its outstanding indebtedness. On June 28, 2013, the Company completed a voluntary refinancing of a portion of its debt. The indebtedness incurred under the new first lien term loan and revolving line of credit bears interest at variable rates, and therefore if interest rates increase, debt service requirements would increase. On July 30, 2013, Appvion fixed the interest rate at 7.24%, on $100.0 million of this variable rate debt using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. 

The Company has competitors in its various markets and it may not be able to maintain prices and margins for its products.

The Company competes based on a number of factors, including price, product availability, quality and customer service. Additionally, the Company competes with domestic production and imports from Europe and Asia. In 2007, the Company filed antidumping petitions against imports of certain lightweight thermal paper (“LWTP”) from China, Germany and Korea and a countervailing duty petition against such imports from China. In 2008, the U.S Department of Commerce (“Department”) issued its final determination, affirming that certain Chinese producers and exporters of LWTP sold the product in the U.S. at prices below fair value, imposing final duties of 19.77% to 115.29%, and that German producers and exporters sold the product in the U.S. at prices below fair value and imposed final duties on those imports of 6.5%. In addition, for all but one Chinese producer, the Department imposed countervailing duties of between 13.17% and 137.25%. In 2008, the U.S. International Trade Commission (“ITC”) determined the U.S. industry producing LWTP is threatened with material injury due to unfairly traded imports from China and Germany, and final duties went into effect in 2008. These duties do not have a direct impact on the Company’s net income.

A German manufacturer filed an appeal of the ITC determination to the U.S. Court of International Trade (“CIT”). The appeal was decided in favor of the Company in 2009, and the German manufacturer filed a further appeal to the U.S. Court of Appeals for the Federal Circuit (“CAFC”). In 2011, the CAFC remanded the matter for further consideration by the ITC, and the ITC upheld its original determination. In January 2012, the CIT upheld the ITC’s decision on remand, and the German manufacturer filed another appeal of the matter to the CAFC. In January 2013, the CAFC affirmed the decision of the CIT in favor of the Company.

In addition, for each of the four 12-month periods following implementation of the final duties, the Company and the German manufacturer have filed requests for administrative review with the Department, seeking to modify the amount of the duties based on the market practices during each respective 12-month period. In 2011, the Department issued a final determination in the first 12-month review period, resulting in a dumping margin of 3.77 percent for imports from the German manufacturer for the period from November 2008 to October 2009. In 2012, the Department issued a final determination in the second 12-month review period, resulting in a dumping margin of 4.33% for imports from the German manufacturer for the period from November 2009 to October 2010. In April 2013, the Department issued a final determination in the third 12-month review period, resulting in a dumping margin of 75.36% for imports from the German manufacturer for the period from November 2010 to October 2011. The third review determination was based on the Department’s finding that the German manufacturer knowingly and intentionally submitted fraudulent responses to the Department. The German manufacturer has appealed each of the final review determinations. Finally, the Department and the ITC are required to conduct reviews five years after an antidumping or countervailing duties order is issued to determine whether revoking the order would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury (“Sunset Review”). In October 2013, the Company filed notices of its intent to participate in the Sunset Review of the German and Chinese duties. Upon final resolution of the appeals, the fourth administrative review and the Sunset Review, certain of the duties could be reduced, increased or eliminated.

48

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements. The words “will,” “may,” “should,” “believes,” “anticipates,” “intends,” “estimates,” “expects,” “projects,” “plans,” “seeks” or similar expressions are intended to identify forward-looking statements. All statements in this report other than statements of historical fact, including statements which address the Company’s strategy, future operations, future financial position, estimated revenues, projected costs, prospects, plans and objectives of management and events or developments that it expects or anticipates will occur, are forward-looking statements. All forward-looking statements speak only as of the date on which they are made. They rely on a number of assumptions concerning future events and are subject to a number of risks and uncertainties, many of which are outside the Company’s control, that could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the factors listed under “Item 1A – Risk Factors” in the Annual Report on Form 10-K for the year ended December 29, 2012, as well as in the Quarterly Report on Form 10-Q for the current quarter ended September 29, 2013, which factors are incorporated herein by reference and as updated above. Many of these factors are beyond the Company’s ability to control or predict. Given these uncertainties, undue reliance should not be placed on the forward-looking statements. The Company disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

49

Item 6 – Exhibits

31.1	Certification of Mark R. Richards, Chairman, President and Chief Executive Officer of Appvion, Inc., pursuant to Rule 15d-14(a) of the Securities Exchange Act of 1934 as amended.
31.2	Certification of Thomas J. Ferree, Senior Vice President Finance, Chief Financial Officer and Treasurer of Appvion, Inc., pursuant to Rule 15d-14(a) of the Securities Exchange Act of 1934 as amended.
31.3	Certification of Mark R. Richards, Chairman, President and Chief Executive Officer of Paperweight Development Corp., pursuant to Rule 15d-14(a) of the Securities Exchange Act of 1934 as amended.
31.4	Certification of Thomas J. Ferree, Senior Vice President Finance, Chief Financial Officer and Treasurer of Paperweight Development Corp., pursuant to Rule 15d-14(a) of the Securities Exchange Act of 1934 as amended.
32.1	Certification of Mark R. Richards, Chairman, President and Chief Executive Officer of Appvion, Inc., pursuant to 18 U.S.C. Section 1350.
32.2	Certification of Thomas J. Ferree, Senior Vice President Finance, Chief Financial Officer and Treasurer of Appvion, Inc., pursuant to 18 U.S.C. Section 1350.
32.3	Certification of Mark R. Richards, Chairman, President and Chief Executive Officer of Paperweight Development Corp., pursuant to 18 U.S.C. Section 1350.
32.4	Certification of Thomas J. Ferree, Senior Vice President Finance, Chief Financial Officer and Treasurer of Paperweight Development Corp., pursuant to 18 U.S.C. Section 1350.
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50

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	APPVION, INC.             (Registrant)
Date: November 5, 2013	/s/ Thomas J. Ferree
	Thomas J. Ferree
	Senior Vice President Finance, Chief Financial Officer and Treasurer (Signing on behalf of the Registrant and as the Principal Financial Officer)

51

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PAPERWEIGHT DEVELOPMENT CORP.                         (Registrant)
Date: November 5, 2013	/s/ Thomas J. Ferree
	Thomas J. Ferree
	Senior Vice President Finance, Chief Financial Officer and Treasurer (Signing on behalf of the Registrant and as the Principal Financial Officer)

52

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Mark R. Richards, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Appvion, Inc.;  

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  November 5, 2013		/s/ Mark R. Richards
	Name:	Mark R. Richards
	Title:	Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Thomas J. Ferree, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Appvion, Inc.;  

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  November 5, 2013		/s/ Thomas J. Ferree
	Name:	Thomas J. Ferree
	Title:	Senior Vice President Finance, Chief Financial Officer and Treasurer

EX-31.3

Exhibit 31.3

CERTIFICATION

I, Mark R. Richards, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Paperweight Development Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 5,  2013		/s/ Mark R. Richards
	Name:	Mark R. Richards
	Title:	Chairman, President and Chief Executive Officer

EX-31.4

Exhibit 31.4

CERTIFICATION

I, Thomas J. Ferree, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Paperweight Development Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 5, 2013		/s/ Thomas J. Ferree
	Name:	Thomas J. Ferree
	Title:	Senior Vice President Finance, Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

Statement

Pursuant to §906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. §1350, the undersigned officer of Appvion, Inc. (the “Company”), hereby certifies that to his knowledge:

(1)the Company’s Quarterly Report on Form 10-Q for the period ended September 29, 2013 fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and

(2)the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	Appvion, Inc.
Dated:  November 5, 2013		/s/ Mark R. Richards
	Name:	Mark R. Richards
	Title:	Chairman, President and Chief Executive Officer

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of the Securities Exchange Act of 1934, as amended.

EX-32.2

Exhibit 32.2

Statement

Pursuant to §906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. §1350, the undersigned officer of Appvion, Inc. (the “Company”), hereby certifies that to his knowledge:

(1)the Company’s Quarterly Report on Form 10-Q for the period ended September 29, 2013 fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and

(2)the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	Appvion, Inc.
Dated:  November 5,  2013		/s/ Thomas J. Ferree
	Name:	Thomas J. Ferree
	Title:	Senior Vice President Finance, Chief Financial Officer and Treasurer

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of the Securities Exchange Act of 1934, as amended.

EX-32.3

Exhibit 32.3

Statement

Pursuant to §906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. §1350, the undersigned officer of Paperweight Development Corp. (the “Company”), hereby certifies that to his knowledge:

(1)the Company’s Quarterly Report on Form 10-Q for the period ended September 29, 2013 fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and

(2)the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	Paperweight Development Corp.
Dated:  November 5, 2013		/s/ Mark R. Richards
	Name:	Mark R. Richards
	Title:	Chairman, President and Chief Executive Officer

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of the Securities Exchange Act of 1934, as amended.

EX-32.4

Exhibit 32.4

Statement

Pursuant to §906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. §1350, the undersigned officer of Paperweight Development Corp. (the “Company”), hereby certifies that to his knowledge:

(1)the Company’s Quarterly Report on Form 10-Q for the period ended September 29, 2013 fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and

(2)the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	Paperweight Development Corp.
Dated: November 5, 2013		/s/ Thomas J. Ferree
	Name:	Thomas J. Ferree
	Title:	Senior Vice President Finance, Chief Financial Officer and Treasurer

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of the Securities Exchange Act of 1934, as amended.

XML

Long-Term Incentive Compensation

9 Months Ended

Sep. 29, 2013

Long-Term Incentive Compensation

11.      LONG-TERM INCENTIVE COMPENSATION    

In December 2001, the Company adopted the Appvion, Inc. Long-Term Incentive Plan (“LTIP”). Effective January 3, 2010, the Company adopted a long-term restricted stock unit plan ("RSU"). Both plans utilize phantom units. The value of a unit in the LTIP is based on the change in the fair market value of PDC’s common stock under the terms of the employee stock ownership plan (the “ESOP”) between the grant date and the exercise date. The value of a unit in the RSU is based on the value of PDC common stock, as determined by the ESOP trustee. As of September 29, 2013, the fair market value of one share of PDC common stock is $17.85. All units under both the LTIP and RSU plans will vest immediately, and cash payment will be made upon a change in control as defined in the plans.

On January 2, 2013,  160,000 RSU units became fully vested and exercisable. In accordance with the plan, payment for these RSU’s was made on February 22, 2013. In addition, on July 2, 2013,  1,500 RSU units became fully vested and exercisable. Payment for these RSU’s was made on August 9, 2013. During the first nine months of 2013, 114,925 additional units were granted under the RSU plan. Due to terminations of employment, 6,300unvested units were forfeited during the first nine months of 2013. A balance of 216,125 RSU units remains as of September 29, 2013. Approximately $0.3 million and $0.9 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 29, 2013. Approximately $0.1 million and $1.3 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 30, 2012. During the first nine months of 2013, 194,100 additional units were granted under the LTIP plan. Approximately $0.3 million and $1.0 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 29, 2013. Due to the third quarter 2012 change in PDC share price, $0.4 million of previously-recorded expense related to this plan was recovered during this prior year quarter. Approximately $1.2 million of expense was recorded during the nine-month period ended September 30, 2012.

Beginning in 2006, the Company established a nonqualified deferred compensation agreement with each of its non-employee directors. Approximately $0.1 million was recorded as expense, related to this plan, for the three-month period ended September 29, 2013. Due to the third quarter 2012 change in PDC share price, $0.1 million of previously-recorded expense related to this plan was recovered during the prior year quarter. Approximately $0.3 million and $0.2 million was recorded as expense, related to this plan, for each of the nine-month periods ended September 29, 2013 and September 30, 2012, respectively.

Appvion, Inc. [Member]

Long-Term Incentive Compensation

11.      LONG-TERM INCENTIVE COMPENSATION    

In December 2001, the Company adopted the Appvion, Inc. Long-Term Incentive Plan (“LTIP”). Effective January 3, 2010, the Company adopted a long-term restricted stock unit plan ("RSU"). Both plans utilize phantom units. The value of a unit in the LTIP is based on the change in the fair market value of PDC’s common stock under the terms of the employee stock ownership plan (the “ESOP”) between the grant date and the exercise date. The value of a unit in the RSU is based on the value of PDC common stock, as determined by the ESOP trustee. As of September 29, 2013, the fair market value of one share of PDC common stock is $17.85. All units under both the LTIP and RSU plans will vest immediately, and cash payment will be made upon a change in control as defined in the plans.

On January 2, 2013,  160,000 RSU units became fully vested and exercisable. In accordance with the plan, payment for these RSU’s was made on February 22, 2013. In addition, on July 2, 2013,  1,500 RSU units became fully vested and exercisable. Payment for these RSU’s was made on August 9, 2013. During the first nine months of 2013, 114,925 additional units were granted under the RSU plan. Due to terminations of employment, 6,300unvested units were forfeited during the first nine months of 2013. A balance of 216,125 RSU units remains as of September 29, 2013. Approximately $0.3 million and $0.9 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 29, 2013. Approximately $0.1 million and $1.3 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 30, 2012. During the first nine months of 2013, 194,100 additional units were granted under the LTIP plan. Approximately $0.3 million and $1.0 million of expense, related to this plan, was recorded during the three- and nine-month periods ended September 29, 2013. Due to the third quarter 2012 change in PDC share price, $0.4 million of previously-recorded expense related to this plan was recovered during this prior year quarter. Approximately $1.2 million of expense was recorded during the nine-month period ended September 30, 2012.

Beginning in 2006, the Company established a nonqualified deferred compensation agreement with each of its non-employee directors. Approximately $0.1 million was recorded as expense, related to this plan, for the three-month period ended September 29, 2013. Due to the third quarter 2012 change in PDC share price, $0.1 million of previously-recorded expense related to this plan was recovered during the prior year quarter. Approximately $0.3 million and $0.2 million was recorded as expense, related to this plan, for each of the nine-month periods ended September 29, 2013 and September 30, 2012, respectively.

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Employee Benefits (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended		9 Months Ended
	Sep. 30, 2012	Dec. 29, 2012	Mar. 31, 2012	Sep. 29, 2013 Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected contribution in the current fiscal year				$ 12.5
Company contribution to defined benefit pension plan				12.5
Multiemployer Plan Withdrawal Liability			18
Mulitemployer Plan Full Withdrawal Expense	7
Multiemployer Plan Full Withdrawal Expense Payment Period		20 years
Multiemployer Plan Full Withdrawal Expense Likely Maxium Amount		$ 25

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Condensed Consolidated Statements Of Comprehensive Loss (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Net sales	$ 202,870	$ 210,744	$ 615,204	$ 644,275
Cost of sales	154,286	165,956	465,599	577,388
Gross profit	48,584	44,788	149,605	66,887
Selling, general and administrative expenses	29,859	31,731	92,559	107,907
Restructuring		703		27,175
Environmental expense insurance recovery		(2,188)		(2,188)
Operating income (loss)	18,725	14,542	57,046	(66,007)
Other expense (income)
Interest expense	12,343	14,832	42,092	44,925
Debt extinguishment expense	334		25,101
Interest income	(2)	(42)	(2)	(54)
Foreign exchange (gain) loss	(318)	(864)	62	130
Other (income) expense		94		166
Loss before income taxes	6,368	522	(10,207)	(111,174)
Provision for income taxes	(95)	6	82	146
Net loss	6,463	516	(10,289)	(111,320)
Other comprehensive income (loss)
Changes in retirement plans	(397)	(528)	(1,192)	(5,310)
Realized and unrealized gains on derivatives	(1,581)	(1,523)	(569)	(2,292)
Total other comprehensive (loss) income	(1,978)	(2,051)	(1,761)	(7,602)
Comprehensive loss	4,485	(1,535)	(12,050)	(118,922)
Appvion, Inc. [Member]
Net sales	202,870	210,744	615,204	644,275
Cost of sales	154,286	165,956	465,599	577,388
Gross profit	48,584	44,788	149,605	66,887
Selling, general and administrative expenses	29,859	31,731	92,559	107,907
Restructuring		703		27,175
Environmental expense insurance recovery		(2,188)		(2,188)
Operating income (loss)	18,725	14,542	57,046	(66,007)
Other expense (income)
Interest expense	12,343	14,832	42,092	44,925
Debt extinguishment expense	334		25,101
Interest income	(2)	(42)	(2)	(54)
Foreign exchange (gain) loss	(318)	(864)	62	130
Other (income) expense		94		166
Loss before income taxes	6,368	522	(10,207)	(111,174)
Provision for income taxes	(95)	6	82	146
Net loss	6,463	516	(10,289)	(111,320)
Other comprehensive income (loss)
Changes in retirement plans	(397)	(528)	(1,192)	(5,310)
Realized and unrealized gains on derivatives	(1,581)	(1,523)	(569)	(2,292)
Total other comprehensive (loss) income	(1,978)	(2,051)	(1,761)	(7,602)
Comprehensive loss	$ 4,485	$ (1,535)	$ (12,050)	$ (118,922)

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Inventories

9 Months Ended

Sep. 29, 2013

Inventories

4.       INVENTORIES

Inventories consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Finished goods	$	51,843	$	43,243
Raw materials, work in process, stores and spare parts		43,660		51,106
	$	95,503	$	94,349

Stores and spare parts inventory balances of $15.8 million and $15.9 million at September 29, 2013 and December 29, 2012, respectively, are valued at average cost and are included in raw materials, work in process, stores and spare parts. All other inventories are valued using the first-in, first-out (“FIFO”) method.

Appvion, Inc. [Member]

Inventories

4.       INVENTORIES

Inventories consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Finished goods	$	51,843	$	43,243
Raw materials, work in process, stores and spare parts		43,660		51,106
	$	95,503	$	94,349

Stores and spare parts inventory balances of $15.8 million and $15.9 million at September 29, 2013 and December 29, 2012, respectively, are valued at average cost and are included in raw materials, work in process, stores and spare parts. All other inventories are valued using the first-in, first-out (“FIFO”) method.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 29, 2013

Accumulated Other Comprehensive Income

18.      ACCUMULATED OTHER COMPREHENSIVE INCOME

The changes in accumulated other comprehensive income by component for the nine months ended September 29, 2013 are as follows (dollars in thousands):

	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 29, 2012	$	6,453	$	(1,131)	$	5,322
Other comprehensive loss before reclassifications		—		(1,390)		(1,390)
Amounts reclassified from accumulated other
comprehensive income		(1,192)		821		(371)
Net other comprehensive loss		(1,192)		(569)		(1,761)
Balance, September 29, 2013	$	5,261	$	(1,700)	$	3,561

The changes in accumulated other comprehensive income by component for the nine months ended September 30, 2012 are as follows (dollars in thousands):

The changes in accumulated other comprehensive income by component for the nine months ended September 30, 2012 were as follows (dollars in thousands):
	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 31, 2011	$	11,265	$	1,759	$	13,024
Other comprehensive loss before reclassifications		—		(295)		(295)
Amounts reclassified from accumulated other
comprehensive income		(5,310)		(1,997)		(7,307)
Net other comprehensive loss		(5,310)		(2,292)		(7,602)
Balance, September 30, 2012	$	5,955	$	(533)	$	5,422

All amounts presented are net of tax.

Details about these reclassifications are as follows (dollars in thousands):

		Amount Reclassified from
		Accumulated Other
		Comprehensive Income
										Affected Line Item
	For the Three		For the Three		For the Nine		For the Nine			in Consolidated
Details about Accumulated	Months Ended		Months Ended		Months Ended		Months Ended			Statements of
Other Comprehensive	September 29,		September 30,		September 29,		September 30,			Comprehensive Income
Income Components	2013		2012		2013		2012			(Loss)
Changes in retiree plans
Amortization of prior service credit	$	397	$	528	$	1,192	$	5,310	(a)
Hedging activities
Foreign exchange contracts	$	(333)	$	1,070	$	(624)	$	2,653		Net sales
Commodity contracts		—		(262)		(197)		(656)		Cost of sales
	$	(333)	$	808	$	(821)	$	1,997
Total reclassifications for the period	$	64	$	1,336	$	371	$	7,307
(a) These accumulated other comprehensive income components are included in the computation of net periodic
pension cost. See Note 9, Employee Benefits, and Note 10, Postretirement Benefit Plans other than Pensions.

All amounts presented are net of tax.

Appvion, Inc. [Member]

Accumulated Other Comprehensive Income

18.      ACCUMULATED OTHER COMPREHENSIVE INCOME

The changes in accumulated other comprehensive income by component for the nine months ended September 29, 2013 are as follows (dollars in thousands):

	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 29, 2012	$	6,453	$	(1,131)	$	5,322
Other comprehensive loss before reclassifications		—		(1,390)		(1,390)
Amounts reclassified from accumulated other
comprehensive income		(1,192)		821		(371)
Net other comprehensive loss		(1,192)		(569)		(1,761)
Balance, September 29, 2013	$	5,261	$	(1,700)	$	3,561

The changes in accumulated other comprehensive income by component for the nine months ended September 30, 2012 are as follows (dollars in thousands):

The changes in accumulated other comprehensive income by component for the nine months ended September 30, 2012 were as follows (dollars in thousands):
	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 31, 2011	$	11,265	$	1,759	$	13,024
Other comprehensive loss before reclassifications		—		(295)		(295)
Amounts reclassified from accumulated other
comprehensive income		(5,310)		(1,997)		(7,307)
Net other comprehensive loss		(5,310)		(2,292)		(7,602)
Balance, September 30, 2012	$	5,955	$	(533)	$	5,422

All amounts presented are net of tax.

Details about these reclassifications are as follows (dollars in thousands):

		Amount Reclassified from
		Accumulated Other
		Comprehensive Income
										Affected Line Item
	For the Three		For the Three		For the Nine		For the Nine			in Consolidated
Details about Accumulated	Months Ended		Months Ended		Months Ended		Months Ended			Statements of
Other Comprehensive	September 29,		September 30,		September 29,		September 30,			Comprehensive Income
Income Components	2013		2012		2013		2012			(Loss)
Changes in retiree plans
Amortization of prior service credit	$	397	$	528	$	1,192	$	5,310	(a)
Hedging activities
Foreign exchange contracts	$	(333)	$	1,070	$	(624)	$	2,653		Net sales
Commodity contracts		—		(262)		(197)		(656)		Cost of sales
	$	(333)	$	808	$	(821)	$	1,997
Total reclassifications for the period	$	64	$	1,336	$	371	$	7,307
(a) These accumulated other comprehensive income components are included in the computation of net periodic
pension cost. See Note 9, Employee Benefits, and Note 10, Postretirement Benefit Plans other than Pensions.

All amounts presented are net of tax.

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Segment Information (Schedule Of Segment Reporting Information) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Segment Reporting Information [Line Items]
Net sales	$ 202,870	$ 210,744	$ 615,204	$ 644,275
Operating income (loss)	18,725	14,542	57,046	(66,007)
Depreciation and amortization	7,598	8,518	22,813	91,169
Carbonless Paper [Member]
Segment Reporting Information [Line Items]
Net sales	88,791	95,857	266,818	315,733
Operating income (loss)	10,777	9,968	30,460	(30,782)
Depreciation and amortization	3,758	4,645	11,264	49,524
Thermal Papers [Member]
Segment Reporting Information [Line Items]
Net sales	105,639	106,534	323,033	304,946
Operating income (loss)	7,769	1,851	26,299	(28,210)
Depreciation and amortization	3,355	3,426	10,064	39,408
Net Paper Segments [Member]
Segment Reporting Information [Line Items]
Net sales	194,430	202,391	589,851	620,679
Operating income (loss)	18,546	11,819	56,759	(58,992)
Depreciation and amortization	7,113	8,071	21,328	88,932
Encapsys [Member]
Segment Reporting Information [Line Items]
Net sales	12,437	12,804	38,505	38,998
Operating income (loss)	2,810	3,369	9,500	8,443
Depreciation and amortization	466	463	1,430	2,217
Unallocated Corporate Charges [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	(2,032)	13	(7,223)	(13,158)
Depreciation and amortization	19	(16)	55	20
Intersegment [Member]
Segment Reporting Information [Line Items]
Net sales	(3,997)	(4,451)	(13,152)	(15,402)
Operating income (loss)	$ (599)	$ (659)	$ (1,990)	$ (2,300)

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Postretirement Benefit Plans Other Than Pensions (Components Of Other Postretirement Benefit Cost) (Details) (Other Postretirement Benefits [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 98	$ 94	$ 260	$ 281
Interest cost	342	469	1,092	1,409
Amortization of prior service credit	(519)	(650)	(1,557)	(1,950)
Amortization of actuarial loss	(1,889)		(1,889)
Curtailment gain				(3,726)
Net periodic benefit income	$ (1,968)	$ (87)	$ (2,094)	$ (3,986)

XML

Commitments And Contingencies

9 Months Ended

Sep. 29, 2013

Commitments And Contingencies

12.      COMMITMENTS AND CONTINGENCIES 

Lower Fox River

Appvion Removed as a Potentially Responsible Party (“PRP”).On April 10, 2012, the United States District Court for the Eastern District of Wisconsin granted Appvion’s motion for summary judgment and dismissed all claims against Appvion in the enforcement action.  The decision establishes that Appvion is no longer a PRP, no longer liable under the federal Comprehensive Environmental Response, Compensation, and Liability Act, (“CERCLA” or “Superfund”), no longer considered a legal successor to NCR’s liabilities, and no longer required to comply with the 106 Order commanding remediation of the Lower Fox River. In addition, on July 3, 2012, the United States District Court for the Eastern District of Wisconsin determined that Appleton Coated Paper Company and NCR did not arrange for the disposal of hazardous waste within the meaning of CERCLA.

The rulings do not affect Appvion’s rights or obligations to share defense and liability costs with NCR in accordance with the terms of  a 1998 agreement and a 2005 arbitration determination (“the Arbitration”) arising out of Appvion’s acquisition of assets from NCR in 1978 while it was a subsidiary of B.A.T Industries Limited (“BAT”). Appvion and BAT have joint and several liability under the Arbitration for certain costs relating to the Lower Fox River and other potential future sites. Appvion has initiated the dispute resolution procedures outlined in the 1998 agreement. Issues in dispute include the scope of Appvion’s liability under the agreement, if any, as well as funding requests and supporting documentation from NCR (the “Dispute Resolution”). The current carrying amount of Appvion’s liability under the Arbitration is $60.8 million, which represents Appvion’s best estimate of potential amounts to be paid. On June 8, 2012, BAT served AWA with a claim filed in a United Kingdom court, seeking a declaration that BAT is indemnified by AWA from and against any losses relating to the Lower Fox River. On June 26, 2012, BAT served Appvion with the same claim, seeking a declaration that BAT is indemnified by Appvion. Appvion intends to vigorously defend against this claim and has filed an application challenging the jurisdiction of the United Kingdom court.

Prior to the ruling in the above enforcement action, the United States Environmental Protection Agency (“EPA”) and Wisconsin Department of Natural Resources (“DNR”) claimed Appvion was a PRP with respect to historic discharges of polychlorinated biphenyls (“PCBs”) into the Lower Fox River in Wisconsin. Carbonless paper containing PCBs was manufactured at what is currently the Appleton plant from 1954 until 1971. During this period, wastewater containing PCBs was discharged into the Lower Fox River from a publicly-owned treatment works, from the Combined Locks, Wisconsin paper mill and from other local industrial facilities. Wastewater from the Appleton plant was processed through the publicly-owned treatment works.Appvion purchased the Appleton plant and the Combined Locks, Wisconsin paper mill from NCR in 1978, long after the use of PCBs in the manufacturing process was discontinued.The EPA issued an administrative order in November 2007, directing the PRPs to implement the remedial action of the Fox River pursuant to which certain of the PRPs commenced remediation in 2008. The various PRPs, including NCR, the EPA and the DNR continue to contest the scope, extent and costs of the remediation as well as the appropriate basis for determining the parties’ relative shares of the remediation cost.

The rulings also do not affect either of the two indemnification agreements entered in 2001 wherein AWA agreed to indemnify PDC and PDC agreed to indemnify Appvion for costs, expenses and liabilities related to certain governmental and third-party environmental claims(including certain claims under the Arbitration),  which are defined in the agreements as the Fox River Liabilities. Appvion has recorded a $60.8 million environmental indemnification receivable as of September 29, 2013.

Estimates of Liability.The accrued Arbitration liability is derived from available information, including consideration of uncertainties regarding the scope and cost of implementing the final remediation plan, the scope of restoration and final valuation of natural resource damage (“NRD”) assessments, the evolving nature of remediation and restoration technologies and governmental policies, NCR’s share of liability relative to other PRPs and the extent of BAT’s performance under the Arbitration. Appvion believes NCR has paid more than its estimated share of the liability based on the assumptions below. Based on the analysis of available information, it is reasonably possible that the Company’s costs to satisfy its Arbitration liability, when ultimately settled, could range from $10 million to $310 million, with a payment period extending beyond ten years. The Company has recorded a liability of $60.8 million at September 29, 2013, which is its best estimate of the probable loss within this range. The Company believes the likelihood of an outcome in the upper end of the range is significantly less than other possible outcomes within the range.  Interim legal determinations may periodically obligate NCR (and BAT and Appvion pursuant to the Arbitration) to fund portions of the cleanup costs to extents greater than NCR’s share as finally determined, and in such instances, Appvion may reserve additional amounts (including appropriate reimbursement under its indemnification agreements as discussed below).

The following assumptions were used in evaluating Appvion’s Arbitration liability:

•      As of December 31, 2012, NCR has recorded an estimated liability of $115 million representing its portion of defense and liability costs with respect to the Lower Fox River;

•      Technical analysis contending that discharges from NCR’s former assetsrepresent 8% to 10% of the total PCBs discharged by the PRPs;

•      Appvion’s and BAT’s joint and several responsibility for over half of the claims asserted against NCR, based on the Arbitration and the Dispute Resolution;

•      Based on legal analyses and ongoing reviews of publicly-available financial information, Appvion believes that other PRPs will be required, and have adequate financial resources, to pay their respective shares of the remediation and NRD claims for the Lower Fox River; and

•      legal fees and other expenses.

Appvion believes its recorded liability reflects its best estimate of potential payments under the Arbitration Agreement. While it is reasonably possible that Appvion may be responsible for additional payments under the Arbitration, additional payments are not deemed probable because ongoing litigation, continuing negotiation, and the Dispute Resolution process could significantly affect Appvion’s future obligation under the Arbitration.

AWA Indemnification.Pursuant to two indemnification agreements entered in 2001, AWA agreed to indemnify PDC and PDC agreed to indemnify Appvion for costs, expenses and liabilities related to certain governmental and third-party environmental claims, which are defined in the agreements as the Fox River Liabilities and other potential future sites.

Under the indemnification agreements, Appvion is indemnified for the first $75 million of Fox River Liabilities and for amounts in excess of $100 million. During 2008, Appvion paid $25 million to satisfy its portion of the Fox River Liabilities not covered by the indemnification agreement with AWA. As of September 2013, AWA has paid $277.7 million in connection with Fox River Liabilities. At September 29, 2013, PDC’s total indemnification receivable from AWA was $60.8 million, all of which is recorded in other current assets. At September 29, 2013, the total Appvion indemnification receivable from PDC was $60.8 million, all of which is recorded in other current assets.

In March 2008, Appvion received favorable jury verdicts in a state court declaratory judgment relating to insurance coverage of its environmental claims involving the Fox River. A final judgment and order was entered in January 2009 and upheld by the Wisconsin Court of Appeals in June 2010. Settlements have been negotiated between the insurers and Appvion. Under the terms of the indemnification agreement, recoveries from insurance are reimbursed to AWA to the extent of its indemnification obligation. During 2010, Appvion recorded an $8.9 million receivable, representing settlements to be received in excess of amounts reimbursable to AWA, in the Consolidated Balance Sheet as of January 1, 2011. During 2011, Appvion received $6.2 million of these funds. During third quarter 2012, an additional  environmental expense insurance recovery of $2.2 million was recorded as a separate line item within operating income on the Consolidated Statement of Comprehensive Loss and all remaining funds were received by Appvion in 2012.

The indemnification agreements negotiated with AWA are designed to ensure that Appvion will not be required to fund any of the indemnified costs and expenses in relation to the Fox River Liabilities. This arrangement is working as designed and is expected to continue to protect Appvion with respect to the indemnified costs and expenses, based on Appvion’s review of the financial condition of AWA and estimates of Appvion’s liability. As earlier noted, Appvion’s ultimate liability pursuant to the Arbitration could prove to be significantly larger than the current carrying amount and potentially could exceed the financial capability of AWA. In the event Appvion is unable to secure payment from AWA or its former parent companies, Appvion may be liable for amounts pursuant to the Arbitration and these amounts may be material to Appvion.

West Carrollton

The West Carrollton, Ohio facility operates pursuant to various state and federal permits for discharges and emissions to air and water. As a result of the de-inking of carbonless paper containing PCBs through the early 1970s, there may have been releases of PCBs and volatile organic compounds into the soil in the area of the wastewater impoundments at the West Carrollton facility and low levels of PCBs have been detected in the groundwater immediately under this area. In addition, PCB contamination is present in sediment in the adjacent Great Miami River, but it is believed that this contamination is from a source other than the West Carrollton facility.

Based on investigation and delineation of PCB contamination in soil and groundwater in the area of the wastewater impoundments, the Company believes that it may be necessary to undertake remedial action in the future, although the Company is currently under no obligation to do so. The Company has not had any discussions or communications with any federal, state or local agencies or authorities regarding remedial action to address PCB contamination at the West Carrollton facility. The cost for remedial action, which could include installation of a cap, long-term pumping, treating and/or monitoring of groundwater and removal of sediment in the Great Miami River, was estimated in 2001 to range up to approximately $10.5 million, with approximately $3 million in short-term capital costs and the remainder to be incurred over a period of 30 years. However, costs could exceed this amount if additional contamination is discovered, if additional remedial action is necessary or if the remedial action costs are more than expected.

Because of the uncertainty surrounding the ultimate course of action for the West Carrollton facility property, the Great Miami River remediation and the Company’s share of these remediation costs, if any, and since the Company is currently under no obligation to undertake remedial action in the future, no provision has been recorded in its financial statements for estimated remediation costs. In conjunction with the acquisition of PDC by the ESOP in 2001, and as limited by the terms of the purchase agreement, AWA agreed to indemnify the Company for 50% of all environmental liabilities at West Carrollton up to $5.0 million and 100% of all such environmental costs exceeding $5.0 million. In addition, the former owners and operators of the West Carrollton facility may be liable for all or part of the cost of remediation of historic PCB contamination.

Other

From time to time, the Company may be subject to various demands, claims, suits or other legal proceedings arising in the ordinary course of business. A comprehensive insurance program is maintained to provide a measure of financial protection against such matters, though not all such exposures are, or can be, addressed by insurance. Estimated costs are recorded for such demands, claims, suits or proceedings of this nature when reasonably determinable. The Company has successfully defended such claims, settling some for amounts which are not material to the business and obtaining dismissals in others. While the Company will vigorously defend itself and expects to prevail in any similar cases that may be brought against it in the future, there can be no assurance that it will be successful.

Except as described above, and assuming the Company’s expectations regarding defending such demands, claims, suits or other legal or regulatory proceedings prove accurate, the Company does not believe that any pending or threatened demands, claims, suits or other legal proceedings will have, individually or in the aggregate, a materially adverse effect on its business, financial condition and results of operations or cash flows.

Appvion, Inc. [Member]

Commitments And Contingencies

12.      COMMITMENTS AND CONTINGENCIES 

Lower Fox River

Appvion Removed as a Potentially Responsible Party (“PRP”).On April 10, 2012, the United States District Court for the Eastern District of Wisconsin granted Appvion’s motion for summary judgment and dismissed all claims against Appvion in the enforcement action.  The decision establishes that Appvion is no longer a PRP, no longer liable under the federal Comprehensive Environmental Response, Compensation, and Liability Act, (“CERCLA” or “Superfund”), no longer considered a legal successor to NCR’s liabilities, and no longer required to comply with the 106 Order commanding remediation of the Lower Fox River. In addition, on July 3, 2012, the United States District Court for the Eastern District of Wisconsin determined that Appleton Coated Paper Company and NCR did not arrange for the disposal of hazardous waste within the meaning of CERCLA.

The rulings do not affect Appvion’s rights or obligations to share defense and liability costs with NCR in accordance with the terms of  a 1998 agreement and a 2005 arbitration determination (“the Arbitration”) arising out of Appvion’s acquisition of assets from NCR in 1978 while it was a subsidiary of B.A.T Industries Limited (“BAT”). Appvion and BAT have joint and several liability under the Arbitration for certain costs relating to the Lower Fox River and other potential future sites. Appvion has initiated the dispute resolution procedures outlined in the 1998 agreement. Issues in dispute include the scope of Appvion’s liability under the agreement, if any, as well as funding requests and supporting documentation from NCR (the “Dispute Resolution”). The current carrying amount of Appvion’s liability under the Arbitration is $60.8 million, which represents Appvion’s best estimate of potential amounts to be paid. On June 8, 2012, BAT served AWA with a claim filed in a United Kingdom court, seeking a declaration that BAT is indemnified by AWA from and against any losses relating to the Lower Fox River. On June 26, 2012, BAT served Appvion with the same claim, seeking a declaration that BAT is indemnified by Appvion. Appvion intends to vigorously defend against this claim and has filed an application challenging the jurisdiction of the United Kingdom court.

Prior to the ruling in the above enforcement action, the United States Environmental Protection Agency (“EPA”) and Wisconsin Department of Natural Resources (“DNR”) claimed Appvion was a PRP with respect to historic discharges of polychlorinated biphenyls (“PCBs”) into the Lower Fox River in Wisconsin. Carbonless paper containing PCBs was manufactured at what is currently the Appleton plant from 1954 until 1971. During this period, wastewater containing PCBs was discharged into the Lower Fox River from a publicly-owned treatment works, from the Combined Locks, Wisconsin paper mill and from other local industrial facilities. Wastewater from the Appleton plant was processed through the publicly-owned treatment works.Appvion purchased the Appleton plant and the Combined Locks, Wisconsin paper mill from NCR in 1978, long after the use of PCBs in the manufacturing process was discontinued.The EPA issued an administrative order in November 2007, directing the PRPs to implement the remedial action of the Fox River pursuant to which certain of the PRPs commenced remediation in 2008. The various PRPs, including NCR, the EPA and the DNR continue to contest the scope, extent and costs of the remediation as well as the appropriate basis for determining the parties’ relative shares of the remediation cost.

The rulings also do not affect either of the two indemnification agreements entered in 2001 wherein AWA agreed to indemnify PDC and PDC agreed to indemnify Appvion for costs, expenses and liabilities related to certain governmental and third-party environmental claims(including certain claims under the Arbitration),  which are defined in the agreements as the Fox River Liabilities. Appvion has recorded a $60.8 million environmental indemnification receivable as of September 29, 2013.

Estimates of Liability.The accrued Arbitration liability is derived from available information, including consideration of uncertainties regarding the scope and cost of implementing the final remediation plan, the scope of restoration and final valuation of natural resource damage (“NRD”) assessments, the evolving nature of remediation and restoration technologies and governmental policies, NCR’s share of liability relative to other PRPs and the extent of BAT’s performance under the Arbitration. Appvion believes NCR has paid more than its estimated share of the liability based on the assumptions below. Based on the analysis of available information, it is reasonably possible that the Company’s costs to satisfy its Arbitration liability, when ultimately settled, could range from $10 million to $310 million, with a payment period extending beyond ten years. The Company has recorded a liability of $60.8 million at September 29, 2013, which is its best estimate of the probable loss within this range. The Company believes the likelihood of an outcome in the upper end of the range is significantly less than other possible outcomes within the range.  Interim legal determinations may periodically obligate NCR (and BAT and Appvion pursuant to the Arbitration) to fund portions of the cleanup costs to extents greater than NCR’s share as finally determined, and in such instances, Appvion may reserve additional amounts (including appropriate reimbursement under its indemnification agreements as discussed below).

The following assumptions were used in evaluating Appvion’s Arbitration liability:

•      As of December 31, 2012, NCR has recorded an estimated liability of $115 million representing its portion of defense and liability costs with respect to the Lower Fox River;

•      Technical analysis contending that discharges from NCR’s former assetsrepresent 8% to 10% of the total PCBs discharged by the PRPs;

•      Appvion’s and BAT’s joint and several responsibility for over half of the claims asserted against NCR, based on the Arbitration and the Dispute Resolution;

•      Based on legal analyses and ongoing reviews of publicly-available financial information, Appvion believes that other PRPs will be required, and have adequate financial resources, to pay their respective shares of the remediation and NRD claims for the Lower Fox River; and

•      legal fees and other expenses.

Appvion believes its recorded liability reflects its best estimate of potential payments under the Arbitration Agreement. While it is reasonably possible that Appvion may be responsible for additional payments under the Arbitration, additional payments are not deemed probable because ongoing litigation, continuing negotiation, and the Dispute Resolution process could significantly affect Appvion’s future obligation under the Arbitration.

AWA Indemnification.Pursuant to two indemnification agreements entered in 2001, AWA agreed to indemnify PDC and PDC agreed to indemnify Appvion for costs, expenses and liabilities related to certain governmental and third-party environmental claims, which are defined in the agreements as the Fox River Liabilities and other potential future sites.

Under the indemnification agreements, Appvion is indemnified for the first $75 million of Fox River Liabilities and for amounts in excess of $100 million. During 2008, Appvion paid $25 million to satisfy its portion of the Fox River Liabilities not covered by the indemnification agreement with AWA. As of September 2013, AWA has paid $277.7 million in connection with Fox River Liabilities. At September 29, 2013, PDC’s total indemnification receivable from AWA was $60.8 million, all of which is recorded in other current assets. At September 29, 2013, the total Appvion indemnification receivable from PDC was $60.8 million, all of which is recorded in other current assets.

In March 2008, Appvion received favorable jury verdicts in a state court declaratory judgment relating to insurance coverage of its environmental claims involving the Fox River. A final judgment and order was entered in January 2009 and upheld by the Wisconsin Court of Appeals in June 2010. Settlements have been negotiated between the insurers and Appvion. Under the terms of the indemnification agreement, recoveries from insurance are reimbursed to AWA to the extent of its indemnification obligation. During 2010, Appvion recorded an $8.9 million receivable, representing settlements to be received in excess of amounts reimbursable to AWA, in the Consolidated Balance Sheet as of January 1, 2011. During 2011, Appvion received $6.2 million of these funds. During third quarter 2012, an additional  environmental expense insurance recovery of $2.2 million was recorded as a separate line item within operating income on the Consolidated Statement of Comprehensive Loss and all remaining funds were received by Appvion in 2012.

The indemnification agreements negotiated with AWA are designed to ensure that Appvion will not be required to fund any of the indemnified costs and expenses in relation to the Fox River Liabilities. This arrangement is working as designed and is expected to continue to protect Appvion with respect to the indemnified costs and expenses, based on Appvion’s review of the financial condition of AWA and estimates of Appvion’s liability. As earlier noted, Appvion’s ultimate liability pursuant to the Arbitration could prove to be significantly larger than the current carrying amount and potentially could exceed the financial capability of AWA. In the event Appvion is unable to secure payment from AWA or its former parent companies, Appvion may be liable for amounts pursuant to the Arbitration and these amounts may be material to Appvion.

West Carrollton

The West Carrollton, Ohio facility operates pursuant to various state and federal permits for discharges and emissions to air and water. As a result of the de-inking of carbonless paper containing PCBs through the early 1970s, there may have been releases of PCBs and volatile organic compounds into the soil in the area of the wastewater impoundments at the West Carrollton facility and low levels of PCBs have been detected in the groundwater immediately under this area. In addition, PCB contamination is present in sediment in the adjacent Great Miami River, but it is believed that this contamination is from a source other than the West Carrollton facility.

Based on investigation and delineation of PCB contamination in soil and groundwater in the area of the wastewater impoundments, the Company believes that it may be necessary to undertake remedial action in the future, although the Company is currently under no obligation to do so. The Company has not had any discussions or communications with any federal, state or local agencies or authorities regarding remedial action to address PCB contamination at the West Carrollton facility. The cost for remedial action, which could include installation of a cap, long-term pumping, treating and/or monitoring of groundwater and removal of sediment in the Great Miami River, was estimated in 2001 to range up to approximately $10.5 million, with approximately $3 million in short-term capital costs and the remainder to be incurred over a period of 30 years. However, costs could exceed this amount if additional contamination is discovered, if additional remedial action is necessary or if the remedial action costs are more than expected.

Because of the uncertainty surrounding the ultimate course of action for the West Carrollton facility property, the Great Miami River remediation and the Company’s share of these remediation costs, if any, and since the Company is currently under no obligation to undertake remedial action in the future, no provision has been recorded in its financial statements for estimated remediation costs. In conjunction with the acquisition of PDC by the ESOP in 2001, and as limited by the terms of the purchase agreement, AWA agreed to indemnify the Company for 50% of all environmental liabilities at West Carrollton up to $5.0 million and 100% of all such environmental costs exceeding $5.0 million. In addition, the former owners and operators of the West Carrollton facility may be liable for all or part of the cost of remediation of historic PCB contamination.

Other

From time to time, the Company may be subject to various demands, claims, suits or other legal proceedings arising in the ordinary course of business. A comprehensive insurance program is maintained to provide a measure of financial protection against such matters, though not all such exposures are, or can be, addressed by insurance. Estimated costs are recorded for such demands, claims, suits or proceedings of this nature when reasonably determinable. The Company has successfully defended such claims, settling some for amounts which are not material to the business and obtaining dismissals in others. While the Company will vigorously defend itself and expects to prevail in any similar cases that may be brought against it in the future, there can be no assurance that it will be successful.

Except as described above, and assuming the Company’s expectations regarding defending such demands, claims, suits or other legal or regulatory proceedings prove accurate, the Company does not believe that any pending or threatened demands, claims, suits or other legal proceedings will have, individually or in the aggregate, a materially adverse effect on its business, financial condition and results of operations or cash flows.

XML

Property, Plant And Equipment (Components Of Property, Plant And Equipment) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Property, Plant And Equipment [Abstract]
Land and improvements	$ 9,729	$ 9,634
Buildings and improvements	135,170	134,144
Machinery and equipment	672,429	663,915
Software	36,725	33,643
Capital lease	309	304
Construction in progress	15,493	8,631
Property, plant and equipment, gross, total	869,855	850,271
Accumulated depreciation	(626,747)	(607,006)
Property, plant and equipment, net, total	$ 243,108	$ 243,265

XML

Long-Term Incentive Compensation (Details) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended		3 Months Ended		9 Months Ended
	Jul. 02, 2013	Jan. 02, 2013	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair market value of common stock			$ 17.85		$ 17.85
Share Price			$ 17.85		$ 17.85
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units outstanding			216,125		216,125
Share-based compensation expense			$ 0.3	$ 0.1	$ 0.9	$ 1.3
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised	1,500	160,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	1,500	160,000
LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			0.3	(0.4)	1.0	1.2
Deferred Compensation Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation expense			$ 0.1	$ (0.1)	$ 0.3	$ 0.2
Appleton Papers Long Term Incentive Plan (LTIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted					194,100
Long-Term Restricted Stock Unit Plan (RSU) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited unvested units					6,300
Long-Term Restricted Stock Unit Plan (RSU) [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted					114,925

XML

Guarantor Financial Information (Tables)

9 Months Ended

Sep. 29, 2013

Guarantor Financial Information [Abstract]

Condensed Consolidating Balance Sheet

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING BALANCE SHEET
SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	6,950	$	—	$	66	$	—	$	7,016
Accounts receivable, net		—		80,847		—		2,886		—		83,733
Inventories		—		94,003		—		1,500		—		95,503
Due from parent		—		60,786		—		—		(60,786)		—
Other current assets		60,786		9,206		—		297		—		70,289
Total current assets		60,786		251,792		—		4,749		(60,786)		256,541
Property, plant and equipment, net		—		243,099		—		9		—		243,108
Investment in subsidiaries		(372,597)		14,162		—		—		358,435		—
Other assets		12		59,251		—		14		—		59,277
Total assets	$	(311,799)	$	568,304	$	—	$	4,772	$	297,649	$	558,926
LIABILITIES, REDEEMABLE COMMON STOCK,
COMMON STOCK, PAID-IN CAPITAL, DUE
FROM PARENT, ACCUMULATED DEFICIT AND
ACCUMULATED OTHER COMPREHENSIVE INCOME
Current liabilities
Current portion of long-term debt	$	—	$	50,070	$	—	$	—	$	—	$	50,070
Accounts payable		—		61,731		—		38		—		61,769
Due to (from) parent and affiliated
companies		60,786		11,696		—		(11,696)		(60,786)		—
Other accrued liabilities		—		112,385		—		2,268		—		114,653
Total current liabilities		60,786		235,882		—		(9,390)		(60,786)		226,492
Long-term debt		—		508,192		—		—		—		508,192
Other long-term liabilities		—		196,827		—		—		—		196,827
Redeemable common stock,
common stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income		(372,585)		(372,597)		—		14,162		358,435		(372,585)
Total liabilities, redeemable
common stock, common
stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income	$	(311,799)	$	568,304	$	—	$	4,772	$	297,649	$	558,926

Condensed Consolidating Statement Of Comprehensive (Loss) Income

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	612,963	$	—	$	31,977	$	(29,736)	$	615,204
Cost of sales		—		465,510		—		29,892		(29,803)		465,599
Gross profit		—		147,453		—		2,085		67		149,605
Selling, general and administrative
expenses		—		91,080		—		1,479		—		92,559
Operating income		—		56,373		—		606		67		57,046
Interest expense		—		42,092		—		—		—		42,092
Interest income		—		(2)		—		—		—		(2)
Debt extinguishment expense		—		25,101		—		—		—		25,101
Loss in equity investments		10,289		116		—		—		(10,405)		—
Other (income) expense		—		(576)		—		509		129		62
(Loss) income before income taxes		(10,289)		(10,358)		—		97		10,343		(10,207)
(Benefit) provision for income
taxes		—		(69)		—		151		—		82
Net loss		(10,289)		(10,289)		—		(54)		10,343		(10,289)
Other comprehensive loss
Change in retirement plans		(1,192)		(1,192)		—		—		1,192		(1,192)
Realized and unrealized losses
on derivatives		(569)		(569)		—		—		569		(569)
Total other comprehensive loss		(1,761)		(1,761)		—		—		1,761		(1,761)
Comprehensive loss	$	(12,050)	$	(12,050)	$	—	$	(54)	$	12,104	$	(12,050)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	645,294	$	—	$	38,714	$	(39,733)	$	644,275
Cost of sales		—		576,968		—		39,815		(39,395)		577,388
Gross profit (loss)		—		68,326		—		(1,101)		(338)		66,887
Selling, general and administrative
expenses		—		106,354		—		1,553		—		107,907
Environmental expense insurance
recovery		—		(2,188)		—		—		—		(2,188)
Restructuring		—		27,175		—		—		—		27,175
Operating loss		—		(63,015)		—		(2,654)		(338)		(66,007)
Interest expense		—		45,168		—		—		(243)		44,925
Interest income		—		(54)		—		(243)		243		(54)
Loss in equity investments		111,320		2,203		—		—		(113,523)		—
Other expense (income)		—		971		—		(468)		(207)		296
Loss before income taxes		(111,320)		(111,303)		—		(1,943)		113,392		(111,174)
Provision for income taxes		—		17		—		129		—		146
Net loss		(111,320)		(111,320)		—		(2,072)		113,392		(111,320)
Other comprehensive loss
Change in retirement plans		(5,310)		(5,310)		—		—		5,310		(5,310)
Realized and unrealized losses
on derivatives		(2,292)		(2,292)		—		—		2,292		(2,292)
Total other comprehensive loss		(7,602)		(7,602)		—		—		7,602		(7,602)
Comprehensive loss	$	(118,922)	$	(118,922)	$	—	$	(2,072)	$	120,994	$	(118,922)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	202,806	$	—	$	10,140	$	(10,076)	$	202,870
Cost of sales		—		154,494		—		9,965		(10,173)		154,286
Gross profit		—		48,312		—		175		97		48,584
Selling, general and administrative
expenses		—		29,391		—		468		—		29,859
Operating income (loss)		—		18,921		—		(293)		97		18,725
Interest expense		—		12,343		—		—		—		12,343
Interest income		—		(2)		—		—		—		(2)
Debt extinguishment expense		—		334		—		—		—		334
(Income) loss in equity
investments		(6,463)		92		—		—		6,371		—
Other income		—		(194)		—		(228)		104		(318)
Income (loss) before income taxes		6,463		6,348		—		(65)		(6,378)		6,368
(Benefit) provision for income
taxes		—		(115)		—		20		—		(95)
Net income (loss)		6,463		6,463		—		(85)		(6,378)		6,463
Other comprehensive loss
Change in retirement plans		(397)		(397)		—		—		397		(397)
Realized and unrealized losses
on derivatives		(1,581)		(1,581)		—		—		1,581		(1,581)
Total other comprehensive loss		(1,978)		(1,978)		—		—		1,978		(1,978)
Comprehensive income (loss)	$	4,485	$	4,485	$	—	$	(85)	$	(4,400)	$	4,485

Condensed Consolidating Statement Of Cash Flows

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Cash flows from operating activities:
Net loss	$	(10,289)	$	(10,289)	$	—	$	(54)	$	10,343	$	(10,289)
Adjustments to reconcile net loss
to net cash provided (used)
by operating activities:
Depreciation and amortization		—		22,811		—		2		—		22,813
Other		—		11,279		—		509		—		11,788
Change in assets and liabilities, net		15,935		(24,773)		—		248		(10,343)		(18,933)
Net cash provided (used) by
operating activities		5,646		(972)		—		705		—		5,379
Cash flows from investing activities:
Proceeds from sale of equipment		—		6		—		—		—		6
Additions to property, plant
and equipment		—		(20,266)		—		—		—		(20,266)
Net cash used by investing activities		—		(20,260)		—		—		—		(20,260)
Cash flows from financing activities:
Payments of senior secured
first lien notes payable		—		(305,000)		—		—		—		(305,000)
Proceeds from first lien
term loan		—		331,650		—		—		—		331,650
Payment of industrial
development bond		—		(2,650)		—		—		—		(2,650)
Debt acquisition costs		—		(7,235)		—		—		—		(7,235)
Payments relating to capital
lease obligations		—		(67)		—		—		—		(67)
Proceeds from old revolving line
of credit		—		155,300		—		—		—		155,300
Payments of old revolving line
of credit		—		(159,000)		—		—		—		(159,000)
Proceeds from new revolving line
of credit				129,100								129,100
Payments of new revolving line
of credit				(109,100)								(109,100)
Payments of State of Ohio loans		—		(987)		—		—		—		(987)
Due to (from) parent and affiliated
companies, net		3,424		(2,527)		—		(897)		—		—
Proceeds from issuance of
redeemable common stock		1,651		—		—		—		—		1,651
Payments to redeem common stock		(10,721)		—		—		—		—		(10,721)
Decrease in cash overdraft		—		(2,886)		—		—		—		(2,886)
Net cash (used) provided by
financing activities		(5,646)		26,598		—		(897)		—		20,055
Effect of foreign exchange rate
changes on cash and cash equivalents		—		(9)		—		—		—		(9)
Change in cash and cash equivalents		—		5,357		—		(192)		—		5,165
Cash and cash equivalents at
beginning of period		—		1,593		—		258		—		1,851
Cash and cash equivalents at
end of period	$	—	$	6,950	$	—	$	66	$	—	$	7,016

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Cash flows from operating activities:
Net loss	$	(111,320)	$	(111,320)	$	—	$	(2,072)	$	113,392	$	(111,320)
Adjustments to reconcile net loss
to net cash provided (used)
by operating activities:
Depreciation and amortization		—		91,166		—		3		—		91,169
Other		—		15,392		—		(468)		—		14,924
Change in assets and liabilities, net		118,309		10,355		—		(358)		(113,392)		14,914
Net cash provided (used) by
operating activities		6,989		5,593		—		(2,895)		—		9,687
Cash flows from investing activities:
Proceeds from sale of equipment		—		20		—		—		—		20
Additions to property, plant
and equipment		—		(9,015)		—		—		—		(9,015)
Net cash used by investing activities		—		(8,995)		—		—		—		(8,995)
Cash flows from financing activities:
Payments relating to capital
lease obligations		—		(46)		—		—		—		(46)
Proceeds from revolving line
of credit				190,300								190,300
Payments of revolving line of credit				(182,750)								(182,750)
Payments of State of Ohio loans		—		(935)		—		—		—		(935)
Proceeds from municipal debt		—		300		—		—		—		300
Due (from) to parent and affiliated
companies, net		(87)		(2,576)		—		2,663		—		—
Proceeds from issuance of
redeemable common stock		1,677		—		—		—		—		1,677
Payments to redeem common stock		(8,579)		—		—		—		—		(8,579)
Decrease in cash overdraft		—		(5,479)		—		—		—		(5,479)
Net cash (used) provided by
financing activities		(6,989)		(1,186)		—		2,663		—		(5,512)
Effect of foreign exchange rate
changes on cash and cash equivalents		—		22		—		—		—		22
Change in cash and cash equivalents		—		(4,566)		—		(232)		—		(4,798)
Cash and cash equivalents at
beginning of period		—		6,688		—		553		—		7,241
Cash and cash equivalents at
end of period	$	—	$	2,122	$	—	$	321	$	—	$	2,443

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Other Intangible Assets (Tables)

9 Months Ended

Sep. 29, 2013

Other Intangible Assets [Abstract]

Schedule Of Intangible Assets

	As of September 29, 2013				As of December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Trademarks	$	44,665	$	27,849	$	44,665	$	26,275
Patents		7,474		7,474		7,808		7,808
Customer relationships		5,365		2,921		5,365		2,781
Subtotal		57,504	$	38,244		57,838	$	36,864
Unamortizable intangible assets:
Trademarks		22,865				22,865
Total	$	80,369			$	80,703

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Restructuring And Other Related Costs (Tables)

9 Months Ended

Sep. 29, 2013

Restructuring And Other Related Costs [Abstract]

Schedule Of Restructuring And Related Costs

	For the Three		For the Nine		Location on Statement
	Months Ended		Months Ended		of Comprehensive
	September 30, 2012		September 30, 2012		Income (Loss)
Employee termination benefits	$	(250)	$	25,281	Restructuring
Decommissioning and other expenses		953		1,894	Restructuring
Accelerated depreciation		887		63,140	Cost of sales
Revaluation of inventory		—		11,078	Cost of sales
Loss on disposal of fixed assets		—		572	Cost of sales
	$	1,590	$	101,965

Components Of Restructuring Reserve

	December 29, 2012		2013 Additions		2013		September 29, 2013
	Reserve		to Reserve		Utilization		Reserve
Exit costs – equipment decommissioning	$	765	$	—	$	(375)	$	390
Employee termination benefits		18,454		—		(454)		18,000
	$	19,219	$	—	$	(829)	$	18,390

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Inventories (Components Of Inventories) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Inventories [Abstract]
Finished goods	$ 51,843	$ 43,243
Raw materials, work in process, stores and spare parts	43,660	51,106
Inventories, Net	$ 95,503	$ 94,349

XML

Derivative Instruments And Hedging Activities (Tables)

9 Months Ended

Sep. 29, 2013

Derivative Instruments And Hedging Activities [Abstract]

Schedule Of Fair Values Of Derivative Instruments Included In Company's Condensed Consolidated Balance Sheets

Designated as a Hedge	Balance Sheet Location	September 29, 2013		December 29, 2012
Foreign currency exchange derivatives	Other current liabilities	$	(510)	$	(1,014)
Interest Rate Swap	Other long-term liabilities		(1,334)		—
Not Designated as a Hedge
Natural gas collar	Other current assets		65		—
Natural gas collar	Other current liabilities		—		(43)

Schedule Of Amount Of Losses (Gains) On Derivative Instruments

	Statement of	For the Three		For the Three		For the Nine		For the Nine
	Comprehensive	Months Ended		Months Ended		Months Ended		Months Ended
	Income (Loss)	September 29,		September 30,		September 29,		September 30,
Designated as a Hedge	Location	2013		2012		2013		2012
Foreign currency exchange derivatives	Net sales	$	333	$	(1,070)	$	624	$	(2,653)
Losses (gains) recognized in
accumulated other
comprehensive income							365		(190)
Pulp fixed swap	Cost of sales		—		262		197		656
Pulp fixed swap	Other expense		—		94		—		166
Losses recognized in accumulated
other comprehensive income							—		722
Interest rate swap
Losses recognized in accumulated
other comprehensive income							1,334		—
Not Designated as a Hedge
Natural gas collar/fixed swap	Cost of sales		(87)		(29)		(107)		239
Pulp fixed swap	Cost of sales		—		—		—		10

XML

Restructuring And Other Related Costs (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended	12 Months Ended	3 Months Ended			9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended
	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2012	Dec. 29, 2012	Sep. 29, 2013 West Carrollton Mill [Member]	Sep. 30, 2012 West Carrollton Mill [Member]	Jul. 01, 2012 West Carrollton Mill [Member]	Sep. 30, 2012 West Carrollton Mill [Member]	Sep. 30, 2012 Carbonless Papers [Member]	Sep. 30, 2012 Carbonless Papers [Member]	Sep. 30, 2012 Thermal Papers [Member]	Sep. 30, 2012 Thermal Papers [Member]	Sep. 30, 2012 Thermal Papers [Member] West Carrollton Mill [Member]	Sep. 30, 2012 Thermal Papers [Member] West Carrollton Mill [Member]	Sep. 29, 2013 Current Liabilities [Member]	Sep. 29, 2013 Other Long Term Liabilities [Member]	Mar. 31, 2013 Employee Termination [Member] West Carrollton Mill [Member] employee	Mar. 31, 2013 Employee Termination [Member] Appleton Facility [Member] employee
Restructuring Cost and Reserve [Line Items]
Purchase agreement term	15 years
Purchase agreement renewal term, years	5 years
Estimated positions eliminated (added) due to restructuring																	314	(68)
Restructuring and related charges		$ 1,590,000	$ 101,965,000	$ 106,000,000
Restructuring charges		703,000	27,175,000			1,600,000	1,600,000	102,000,000	900,000	56,100,000	700,000	45,900,000	700,000	45,900,000
Employee termination costs		(250,000)	25,281,000												800,000	17,600,000
Estimated remaining cash to be paid due to ceased operations					40,000,000
Estimated cash to be paid over next year due to ceased operations					4,000,000
Estimated cash to be paid over next five years due to ceased operations					9,000,000
Remaining cash to be paid over next five to 20 years due to ceased operations					$ 27,000,000

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Property, Plant And Equipment (Schedule Of Depreciation Expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Depreciation Expense [Line Items]
Depreciation Expense	$ 7,026	$ 7,947	$ 21,099	$ 89,455
Cost Of Sales [Member]
Depreciation Expense [Line Items]
Depreciation Expense	6,365	7,364	19,116	87,487
Selling, General And Administrative Expenses [Member]
Depreciation Expense [Line Items]
Depreciation Expense	$ 661	$ 583	$ 1,983	$ 1,968

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Other Accrued Liabilities (Tables)

9 Months Ended

Sep. 29, 2013

Other Accrued Liabilities [Abstract]

Schedule Of Accrued Liabilities

	September 29, 2013		December 29, 2012
Compensation	$	6,807	$	14,800
Trade discounts		12,921		16,796
Workers’ compensation		8,325		4,875
Accrued insurance		1,799		1,896
Other accrued taxes		1,264		1,494
Postretirement benefits other than pension		3,248		3,248
Fox River Liabilities		60,786		65,000
Restructuring reserve		822		1,219
Other		6,178		10,307
	$	102,150	$	119,635

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Long-Term Obligations (Schedule Of Long-Term Obligations) (Details) (USD $)			9 Months Ended			6 Months Ended	9 Months Ended		9 Months Ended				9 Months Ended				9 Months Ended			9 Months Ended		3 Months Ended	9 Months Ended			9 Months Ended
	Sep. 29, 2013	Dec. 29, 2012	Sep. 29, 2013 Revolving Credit Facility [Member]	Sep. 29, 2013 OldRevolvingCreditFacility[Member]	Dec. 29, 2012 OldRevolvingCreditFacility[Member]	Jun. 30, 2013 SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Sep. 29, 2013 SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Sep. 29, 2013 UnamortizedDiscountOnSeniorSecuredFirstLienNotesPayableDue2019 [Member]	Sep. 29, 2013 Industrial Development Bonds [Member]	Sep. 29, 2013 Industrial Development Bonds 2013 [Member]	Sep. 29, 2013 Industrial Development Bonds, Due 2027 [Member]	Dec. 29, 2012 Industrial Development Bonds, Due 2027 [Member]	Sep. 29, 2013 State Of Ohio Assistance Loan At 6% [Member]	Dec. 29, 2012 State Of Ohio Assistance Loan At 6% [Member]	Sep. 29, 2013 State Of Ohio Loan At 1% Until July 2011, Then 3% Until May 2019 [Member]	Dec. 29, 2012 State Of Ohio Loan At 1% Until July 2011, Then 3% Until May 2019 [Member]	Sep. 29, 2013 State Of Ohio Loan At 3% Until May 2019 [Member]	Sep. 29, 2013 Columbia County, Wisconsin Municipal Debt Due December 2019 [Member]	Dec. 29, 2012 Columbia County, Wisconsin Municipal Debt Due December 2019 [Member]	Sep. 29, 2013 Senior Subordinated Notes Payable, Due June 2014 [Member]	Dec. 29, 2012 Senior Subordinated Notes Payable, Due June 2014 [Member]	Jun. 30, 2013 Senior Secured First Lien Notes Payable At 10.5% [Member]	Sep. 29, 2013 Senior Secured First Lien Notes Payable At 10.5% [Member]	Dec. 29, 2012 Senior Secured First Lien Notes Payable At 10.5% [Member]	Dec. 29, 2012 Unamortized Discount On 10.5% Senior Secured First Lien Notes Payable [Member]	Sep. 29, 2013 Second Lien Notes Payable [Member]	Mar. 31, 2013 Second Lien Notes Payable [Member]	Dec. 29, 2012 Second Lien Notes Payable [Member]
Debt Instrument [Line Items]
Long-term debt	$ 558,262,000	$ 515,599,000	$ 20,000,000		$ 3,700,000	$ 335,000,000	$ 335,000,000	$ (3,224,000)			$ 6,000,000	$ 8,650,000	$ 4,440,000	$ 5,210,000	$ 1,785,000	$ 2,002,000		$ 300,000	$ 300,000	$ 32,195,000	$ 32,195,000			$ 305,000,000	$ (3,224,000)	$ 161,766,000		$ 161,766,000
Less obligations due within one year	(50,070,000)	(3,975,000)
Long-term obligations, excluding the capital lease obligation	508,192,000	511,624,000
Revolving credit facility, interest rate			4.75%	4.25%
Debt instrument interest rate							5.75%						6.00%				3.00%			9.75%		10.50%				11.25%	11.25%
Long-term debt average interest rate											0.30%
Debt instrument, face amount																							10.5
Debt instrument, maturity year						June 2019	June 2019			August 2013	2027		May 2017				May 2019	December 2019		June 2014		June 2015	June 2015
Debt instrument, maturity date									Sep. 29, 2013																	Dec. 01, 2015
Debt instrument, payment										$ 2,650,000	$ 6,000,000		$ 100,000				$ 30,000

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Guarantor Financial Information (Condensed Consolidating Statement Of Comprehensive (Loss) Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Guarantor Obligations [Line Items]
Net sales	$ 202,870	$ 210,744	$ 615,204	$ 644,275
Cost of sales	154,286	165,956	465,599	577,388
Gross profit	48,584	44,788	149,605	66,887
Selling, general and administrative expenses	29,859	31,731	92,559	107,907
Environmental expense insurance recovery		(2,188)		(2,188)
Restructuring		703		27,175
Operating income (loss)	18,725	14,542	57,046	(66,007)
Interest expense	12,343	14,832	42,092	44,925
Debt extinguishment expense	334		25,101
Interest income	(2)	(42)	(2)	(54)
Other (income) expense	(318)	(770)	62	296
(Loss) income before income taxes	6,368	522	(10,207)	(111,174)
Provision for income taxes	(95)	6	82	146
Net (loss) income	6,463	516	(10,289)	(111,320)
Other comprehensive income
Changes in retirement plans	(397)	(528)	(1,192)	(5,310)
Realized and unrealized gains on derivatives	(1,581)	(1,523)	(569)	(2,292)
Total other comprehensive income	(1,978)	(2,051)	(1,761)	(7,602)
Comprehensive (loss) income	4,485	(1,535)	(12,050)	(118,922)
Paperweight Development Corp. [Member]
Guarantor Obligations [Line Items]
Loss (income) in equity investments	(6,463)	(516)	10,289	111,320
(Loss) income before income taxes	6,463	516	(10,289)	(111,320)
Net (loss) income	6,463	516	(10,289)	(111,320)
Other comprehensive income
Changes in retirement plans	(397)	(528)	(1,192)	(5,310)
Realized and unrealized gains on derivatives	(1,581)	(1,523)	(569)	(2,292)
Total other comprehensive income	(1,978)	(2,051)	(1,761)	(7,602)
Comprehensive (loss) income	4,485	(1,535)	(12,050)	(118,922)
Issuer [Member]
Guarantor Obligations [Line Items]
Net sales	202,806	211,180	612,963	645,294
Cost of sales	154,494	165,723	465,510	576,968
Gross profit	48,312	45,457	147,453	68,326
Selling, general and administrative expenses	29,391	31,209	91,080	106,354
Environmental expense insurance recovery		(2,188)		(2,188)
Restructuring		703		27,175
Operating income (loss)	18,921	15,733	56,373	(63,015)
Interest expense	12,343	14,901	42,092	45,168
Debt extinguishment expense	334		25,101
Interest income	(2)	(42)	(2)	(54)
Loss (income) in equity investments	92	424	116	2,203
Other (income) expense	(194)	(31)	(576)	971
(Loss) income before income taxes	6,348	481	(10,358)	(111,303)
Provision for income taxes	(115)	(35)	(69)	17
Net (loss) income	6,463	516	(10,289)	(111,320)
Other comprehensive income
Changes in retirement plans	(397)	(528)	(1,192)	(5,310)
Realized and unrealized gains on derivatives	(1,581)	(1,523)	(569)	(2,292)
Total other comprehensive income	(1,978)	(2,051)	(1,761)	(7,602)
Comprehensive (loss) income	4,485	(1,535)	(12,050)	(118,922)
Non-Guarantor Subsidiary [Member]
Guarantor Obligations [Line Items]
Net sales	10,140	13,158	31,977	38,714
Cost of sales	9,965	13,717	29,892	39,815
Gross profit	175	(559)	2,085	(1,101)
Selling, general and administrative expenses	468	522	1,479	1,553
Operating income (loss)	(293)	(1,081)	606	(2,654)
Interest income		(69)		(243)
Other (income) expense	(228)	(608)	509	(468)
(Loss) income before income taxes	(65)	(404)	97	(1,943)
Provision for income taxes	20	41	151	129
Net (loss) income	(85)	(445)	(54)	(2,072)
Other comprehensive income
Comprehensive (loss) income	(85)	(445)	(54)	(2,072)
Eliminations [Member]
Guarantor Obligations [Line Items]
Net sales	(10,076)	(13,594)	(29,736)	(39,733)
Cost of sales	(10,173)	(13,484)	(29,803)	(39,395)
Gross profit	97	(110)	67	(338)
Operating income (loss)	97	(110)	67	(338)
Interest expense		(69)		(243)
Interest income		69		243
Loss (income) in equity investments	6,371	92	(10,405)	(113,523)
Other (income) expense	104	(131)	129	(207)
(Loss) income before income taxes	(6,378)	(71)	10,343	113,392
Net (loss) income	(6,378)	(71)	10,343	113,392
Other comprehensive income
Changes in retirement plans	397	528	1,192	5,310
Realized and unrealized gains on derivatives	1,581	1,523	569	2,292
Total other comprehensive income	1,978	2,051	1,761	7,602
Comprehensive (loss) income	$ (4,400)	$ 1,980	$ 12,104	$ 120,994

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Long-Term Obligations (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended		6 Months Ended	9 Months Ended				0 Months Ended	9 Months Ended		3 Months Ended			9 Months Ended		9 Months Ended			3 Months Ended	6 Months Ended	9 Months Ended	0 Months Ended		3 Months Ended	9 Months Ended		6 Months Ended							3 Months Ended
	Jun. 28, 2013	Sep. 29, 2013	Mar. 31, 2012	Jun. 30, 2013 item	Sep. 29, 2013	Sep. 30, 2012	Dec. 29, 2012	Jul. 31, 2013 Interest Swap Fixed Rate [Member]	Aug. 02, 2013 Industrial Development Bonds [Member]	Sep. 29, 2013 Industrial Development Bonds [Member]	Jun. 30, 2013 Swing Line Sub-Facility [Member]	Mar. 31, 2013 Revolving Credit Facility [Member]	Sep. 29, 2013 Revolving Credit Facility [Member]	Jun. 30, 2013 Letter Of Credit Sub-Facility [Member]	Sep. 29, 2013 State Of Ohio Loans [Member]	Jun. 30, 2013 Letter Of Credit [Member]	Sep. 29, 2013 Second Lien Notes Payable [Member]	Mar. 31, 2013 Second Lien Notes Payable [Member]	Dec. 29, 2012 Second Lien Notes Payable [Member]	Jun. 30, 2013 SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Jun. 30, 2013 SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Sep. 29, 2013 SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Jul. 30, 2013 Senior Secured First Lien Notes Payable At 10.5% [Member]	Jul. 31, 2013 Senior Secured First Lien Notes Payable At 10.5% [Member]	Jun. 30, 2013 Senior Secured First Lien Notes Payable At 10.5% [Member]	Sep. 29, 2013 Senior Secured First Lien Notes Payable At 10.5% [Member]	Dec. 29, 2012 Senior Secured First Lien Notes Payable At 10.5% [Member]	Jun. 30, 2013 Minimum [Member] item	Jun. 30, 2013 Maximum [Member] item	Sep. 29, 2013 Base Rate [Member] SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Jun. 30, 2013 Base Rate [Member] SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Jun. 30, 2013 London Interbank Offered Rate (LIBOR) [Member] SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Sep. 29, 2013 London Interbank Offered Rate (LIBOR) [Member] Senior Secured First Lien Notes Payable At 10.5% [Member]	Sep. 29, 2013 London Interbank Offered Rate (LIBOR) [Member] Minimum [Member] SeniorSecuredFirstLienNotesPayableDue2019 [Member]	Jun. 30, 2013 Funds Used From Refinance [Member] Revolving Credit Facility [Member]	Jun. 30, 2013 Funds Used From Refinance [Member] Senior Secured First Lien Notes Payable At 10.5% [Member]
Debt Instrument [Line Items]
Long-term debt		$ 558,262,000			$ 558,262,000		$ 515,599,000						$ 20,000,000				$ 161,766,000		$ 161,766,000	$ 335,000,000	$ 335,000,000	$ 335,000,000					$ 305,000,000
Payments of Long-term Debt					987,000	935,000			2,700,000						1,000,000									4,300,000												300,700,000
Proceeds from revolving line of credit	34,600,000				129,100,000
Proceeds from Other Debt			300,000																	326,300,000
Increase in revolving credit facility												36,900,000
Payments of revolving line of credit					109,100,000
Repayment on revolving credit facility																																			6,000,000
Revolving credit facility, maximum borrowing capacity				100,000,000							5,000,000			12,900,000		25,000,000
Debt instrument interest rate																	11.25%	11.25%				5.75%			10.50%
Basis spread on variable rate																														3.50%	3.50%	4.50%	4.50%	1.25%
Debt instrument, maturity year																					June 2019	June 2019			June 2015	June 2015
Debt instrument, maturity date										Sep. 29, 2013							Dec. 01, 2015
Line of Credit Facility, Maximum Borrowing Capacity				100,000,000							5,000,000			12,900,000		25,000,000
Debt Instrument, Basis Spread on Variable Rate																														3.50%	3.50%	4.50%	4.50%	1.25%
Debt Instrument, Periodic Payment, Interest																																			400,000	1,100,000
Redemption Premium																																				18,100,000
Write off of Deferred Debt Issuance Cost																							100,000		6,700,000
Debt extinguishment expense		334,000			25,101,000																		200,000													18,100,000
Derivative, Fixed Interest Rate								7.24%
Derivative, Amount of Hedged Item								100,000,000
Amortization of term loan in aggregate annual amounts equal to percentage of original principal amount				1.00%
Percentage of excess cash flow				50.00%
Percentage of excess cash flow upon achieving specified consolidated leverage ratio				25.00%
Leverage ratio																												3.50	2.50
Percentage of excess cash flow upon achieving second specified consolidated leverage ratio				0.00%
Second specified leverage ratio				2.50
Debt Issuance Cost																						$ 7,200,000

XML

Other Intangible Assets (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Other Intangible Assets [Abstract]
Amortization expense	$ 600	$ 600	$ 1,714	$ 1,714

XML

Accumulated Other Comprehensive Income (Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Net sales	$ 202,870	$ 210,744	$ 615,204	$ 644,275
Cost of sales	154,286	165,956	465,599	577,388
Net (loss) income	6,463	516	(10,289)	(111,320)
Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Amortization of prior service cost	397	528	1,192	5,310
Net (loss) income	64	1,336	371	7,307
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Hedging Activities [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Net (loss) income	(333)	808	(821)	1,997
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Hedging Activities [Member] | Foreign Currency Exchange Derivatives [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Net sales	(333)	1,070	(624)	2,653
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Hedging Activities [Member] | Commodity Contracts [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Cost of sales		$ (262)	$ (197)	$ (656)

XML

Guarantor Financial Information

9 Months Ended

Sep. 29, 2013

Guarantor Financial Information

19.      GUARANTOR FINANCIAL INFORMATION

Appvion (the “Issuer”) has issued senior subordinated notes, as amended, which are guaranteed by PDC (the “Parent Guarantor”), as well as by Rose Holdings Limited, a 100%-owned subsidiary of Appvion (the “Subsidiary Guarantor”).

Presented below is condensed consolidating financial information for the Parent Guarantor, the Issuer, the Subsidiary Guarantor and a 100%-owned non-guarantor subsidiary (the “Non-Guarantor Subsidiary”) as of September 29, 2013 and December 29, 2012, and for the three and nine months ended September 29, 2013 and September 30, 2012. This financial information should be read in conjunction with the consolidated financial statements and other notes related thereto.

The second lien notes, as amended, place restrictions on the subsidiaries of the Issuer that would limit dividend distributions by these subsidiaries.

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING BALANCE SHEET
SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	6,950	$	—	$	66	$	—	$	7,016
Accounts receivable, net		—		80,847		—		2,886		—		83,733
Inventories		—		94,003		—		1,500		—		95,503
Due from parent		—		60,786		—		—		(60,786)		—
Other current assets		60,786		9,206		—		297		—		70,289
Total current assets		60,786		251,792		—		4,749		(60,786)		256,541
Property, plant and equipment, net		—		243,099		—		9		—		243,108
Investment in subsidiaries		(372,597)		14,162		—		—		358,435		—
Other assets		12		59,251		—		14		—		59,277
Total assets	$	(311,799)	$	568,304	$	—	$	4,772	$	297,649	$	558,926
LIABILITIES, REDEEMABLE COMMON STOCK,
COMMON STOCK, PAID-IN CAPITAL, DUE
FROM PARENT, ACCUMULATED DEFICIT AND
ACCUMULATED OTHER COMPREHENSIVE INCOME
Current liabilities
Current portion of long-term debt	$	—	$	50,070	$	—	$	—	$	—	$	50,070
Accounts payable		—		61,731		—		38		—		61,769
Due to (from) parent and affiliated
companies		60,786		11,696		—		(11,696)		(60,786)		—
Other accrued liabilities		—		112,385		—		2,268		—		114,653
Total current liabilities		60,786		235,882		—		(9,390)		(60,786)		226,492
Long-term debt		—		508,192		—		—		—		508,192
Other long-term liabilities		—		196,827		—		—		—		196,827
Redeemable common stock,
common stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income		(372,585)		(372,597)		—		14,162		358,435		(372,585)
Total liabilities, redeemable
common stock, common
stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income	$	(311,799)	$	568,304	$	—	$	4,772	$	297,649	$	558,926

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 29, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	1,593	$	—	$	258	$	—	$	1,851
Accounts receivable, net		—		88,111		—		4,569		—		92,680
Inventories		—		92,939		—		1,410		—		94,349
Due from parent		—		65,000		—		—		(65,000)		—
Other current assets		65,000		5,570		—		50		—		70,620
Total current assets		65,000		253,213		—		6,287		(65,000)		259,500
Property, plant and equipment, net		—		243,254		—		11		—		243,265
Investment in subsidiaries		(352,909)		14,216		—		—		338,693		—
Other assets		12		58,298		—		15		—		58,325
Total assets	$	(287,897)	$	568,981	$	—	$	6,313	$	273,693	$	561,090
LIABILITIES, REDEEMABLE COMMON STOCK,
COMMON STOCK, PAID-IN CAPITAL, DUE
FROM PARENT, ACCUMULATED DEFICIT AND
ACCUMULATED OTHER COMPREHENSIVE INCOME
Current liabilities
Current portion of long-term debt	$	—	$	3,975	$	—	$	—	$	—	$	3,975
Accounts payable		—		68,574		—		26		—		68,600
Due to (from) parent and affiliated
companies		65,000		10,799		—		(10,799)		(65,000)		—
Other accrued liabilities		—		119,690		—		2,412		—		122,102
Total current liabilities		65,000		203,038		—		(8,361)		(65,000)		194,677
Long-term debt		—		511,624		—		—		—		511,624
Other long-term liabilities		—		207,228		—		458		—		207,686
Redeemable common stock,
common stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income		(352,897)		(352,909)		—		14,216		338,693		(352,897)
Total liabilities, redeemable
common stock, common
stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income	$	(287,897)	$	568,981	$	—	$	6,313	$	273,693	$	561,090

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	612,963	$	—	$	31,977	$	(29,736)	$	615,204
Cost of sales		—		465,510		—		29,892		(29,803)		465,599
Gross profit		—		147,453		—		2,085		67		149,605
Selling, general and administrative
expenses		—		91,080		—		1,479		—		92,559
Operating income		—		56,373		—		606		67		57,046
Interest expense		—		42,092		—		—		—		42,092
Interest income		—		(2)		—		—		—		(2)
Debt extinguishment expense		—		25,101		—		—		—		25,101
Loss in equity investments		10,289		116		—		—		(10,405)		—
Other (income) expense		—		(576)		—		509		129		62
(Loss) income before income taxes		(10,289)		(10,358)		—		97		10,343		(10,207)
(Benefit) provision for income
taxes		—		(69)		—		151		—		82
Net loss		(10,289)		(10,289)		—		(54)		10,343		(10,289)
Other comprehensive loss
Change in retirement plans		(1,192)		(1,192)		—		—		1,192		(1,192)
Realized and unrealized losses
on derivatives		(569)		(569)		—		—		569		(569)
Total other comprehensive loss		(1,761)		(1,761)		—		—		1,761		(1,761)
Comprehensive loss	$	(12,050)	$	(12,050)	$	—	$	(54)	$	12,104	$	(12,050)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	645,294	$	—	$	38,714	$	(39,733)	$	644,275
Cost of sales		—		576,968		—		39,815		(39,395)		577,388
Gross profit (loss)		—		68,326		—		(1,101)		(338)		66,887
Selling, general and administrative
expenses		—		106,354		—		1,553		—		107,907
Environmental expense insurance
recovery		—		(2,188)		—		—		—		(2,188)
Restructuring		—		27,175		—		—		—		27,175
Operating loss		—		(63,015)		—		(2,654)		(338)		(66,007)
Interest expense		—		45,168		—		—		(243)		44,925
Interest income		—		(54)		—		(243)		243		(54)
Loss in equity investments		111,320		2,203		—		—		(113,523)		—
Other expense (income)		—		971		—		(468)		(207)		296
Loss before income taxes		(111,320)		(111,303)		—		(1,943)		113,392		(111,174)
Provision for income taxes		—		17		—		129		—		146
Net loss		(111,320)		(111,320)		—		(2,072)		113,392		(111,320)
Other comprehensive loss
Change in retirement plans		(5,310)		(5,310)		—		—		5,310		(5,310)
Realized and unrealized losses
on derivatives		(2,292)		(2,292)		—		—		2,292		(2,292)
Total other comprehensive loss		(7,602)		(7,602)		—		—		7,602		(7,602)
Comprehensive loss	$	(118,922)	$	(118,922)	$	—	$	(2,072)	$	120,994	$	(118,922)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	202,806	$	—	$	10,140	$	(10,076)	$	202,870
Cost of sales		—		154,494		—		9,965		(10,173)		154,286
Gross profit		—		48,312		—		175		97		48,584
Selling, general and administrative
expenses		—		29,391		—		468		—		29,859
Operating income (loss)		—		18,921		—		(293)		97		18,725
Interest expense		—		12,343		—		—		—		12,343
Interest income		—		(2)		—		—		—		(2)
Debt extinguishment expense		—		334		—		—		—		334
(Income) loss in equity
investments		(6,463)		92		—		—		6,371		—
Other income		—		(194)		—		(228)		104		(318)
Income (loss) before income taxes		6,463		6,348		—		(65)		(6,378)		6,368
(Benefit) provision for income
taxes		—		(115)		—		20		—		(95)
Net income (loss)		6,463		6,463		—		(85)		(6,378)		6,463
Other comprehensive loss
Change in retirement plans		(397)		(397)		—		—		397		(397)
Realized and unrealized losses
on derivatives		(1,581)		(1,581)		—		—		1,581		(1,581)
Total other comprehensive loss		(1,978)		(1,978)		—		—		1,978		(1,978)
Comprehensive income (loss)	$	4,485	$	4,485	$	—	$	(85)	$	(4,400)	$	4,485

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	211,180	$	—	$	13,158	$	(13,594)	$	210,744
Cost of sales		—		165,723		—		13,717		(13,484)		165,956
Gross profit (loss)		—		45,457		—		(559)		(110)		44,788
Selling, general and administrative
expenses		—		31,209		—		522		—		31,731
Environmental expense insurance
recovery		—		(2,188)		—		—		—		(2,188)
Restructuring		—		703		—		—		—		703
Operating income (loss)		—		15,733		—		(1,081)		(110)		14,542
Interest expense		—		14,901		—		—		(69)		14,832
Interest income		—		(42)		—		(69)		69		(42)
(Income) loss in equity
investments		(516)		424		—		—		92		—
Other income		—		(31)		—		(608)		(131)		(770)
Income (loss) before income taxes		516		481		—		(404)		(71)		522
(Benefit) provision for income
taxes		—		(35)		—		41		—		6
Net income (loss)		516		516		—		(445)		(71)		516
Other comprehensive loss
Change in retirement plans		(528)		(528)		—		—		528		(528)
Realized and unrealized losses
on derivatives		(1,523)		(1,523)		—		—		1,523		(1,523)
Total other comprehensive loss		(2,051)		(2,051)		—		—		2,051		(2,051)
Comprehensive loss	$	(1,535)	$	(1,535)	$	—	$	(445)	$	1,980	$	(1,535)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Cash flows from operating activities:
Net loss	$	(10,289)	$	(10,289)	$	—	$	(54)	$	10,343	$	(10,289)
Adjustments to reconcile net loss
to net cash provided (used)
by operating activities:
Depreciation and amortization		—		22,811		—		2		—		22,813
Other		—		11,279		—		509		—		11,788
Change in assets and liabilities, net		15,935		(24,773)		—		248		(10,343)		(18,933)
Net cash provided (used) by
operating activities		5,646		(972)		—		705		—		5,379
Cash flows from investing activities:
Proceeds from sale of equipment		—		6		—		—		—		6
Additions to property, plant
and equipment		—		(20,266)		—		—		—		(20,266)
Net cash used by investing activities		—		(20,260)		—		—		—		(20,260)
Cash flows from financing activities:
Payments of senior secured
first lien notes payable		—		(305,000)		—		—		—		(305,000)
Proceeds from first lien
term loan		—		331,650		—		—		—		331,650
Payment of industrial
development bond		—		(2,650)		—		—		—		(2,650)
Debt acquisition costs		—		(7,235)		—		—		—		(7,235)
Payments relating to capital
lease obligations		—		(67)		—		—		—		(67)
Proceeds from old revolving line
of credit		—		155,300		—		—		—		155,300
Payments of old revolving line
of credit		—		(159,000)		—		—		—		(159,000)
Proceeds from new revolving line
of credit				129,100								129,100
Payments of new revolving line
of credit				(109,100)								(109,100)
Payments of State of Ohio loans		—		(987)		—		—		—		(987)
Due to (from) parent and affiliated
companies, net		3,424		(2,527)		—		(897)		—		—
Proceeds from issuance of
redeemable common stock		1,651		—		—		—		—		1,651
Payments to redeem common stock		(10,721)		—		—		—		—		(10,721)
Decrease in cash overdraft		—		(2,886)		—		—		—		(2,886)
Net cash (used) provided by
financing activities		(5,646)		26,598		—		(897)		—		20,055
Effect of foreign exchange rate
changes on cash and cash equivalents		—		(9)		—		—		—		(9)
Change in cash and cash equivalents		—		5,357		—		(192)		—		5,165
Cash and cash equivalents at
beginning of period		—		1,593		—		258		—		1,851
Cash and cash equivalents at
end of period	$	—	$	6,950	$	—	$	66	$	—	$	7,016

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Cash flows from operating activities:
Net loss	$	(111,320)	$	(111,320)	$	—	$	(2,072)	$	113,392	$	(111,320)
Adjustments to reconcile net loss
to net cash provided (used)
by operating activities:
Depreciation and amortization		—		91,166		—		3		—		91,169
Other		—		15,392		—		(468)		—		14,924
Change in assets and liabilities, net		118,309		10,355		—		(358)		(113,392)		14,914
Net cash provided (used) by
operating activities		6,989		5,593		—		(2,895)		—		9,687
Cash flows from investing activities:
Proceeds from sale of equipment		—		20		—		—		—		20
Additions to property, plant
and equipment		—		(9,015)		—		—		—		(9,015)
Net cash used by investing activities		—		(8,995)		—		—		—		(8,995)
Cash flows from financing activities:
Payments relating to capital
lease obligations		—		(46)		—		—		—		(46)
Proceeds from revolving line
of credit				190,300								190,300
Payments of revolving line of credit				(182,750)								(182,750)
Payments of State of Ohio loans		—		(935)		—		—		—		(935)
Proceeds from municipal debt		—		300		—		—		—		300
Due (from) to parent and affiliated
companies, net		(87)		(2,576)		—		2,663		—		—
Proceeds from issuance of
redeemable common stock		1,677		—		—		—		—		1,677
Payments to redeem common stock		(8,579)		—		—		—		—		(8,579)
Decrease in cash overdraft		—		(5,479)		—		—		—		(5,479)
Net cash (used) provided by
financing activities		(6,989)		(1,186)		—		2,663		—		(5,512)
Effect of foreign exchange rate
changes on cash and cash equivalents		—		22		—		—		—		22
Change in cash and cash equivalents		—		(4,566)		—		(232)		—		(4,798)
Cash and cash equivalents at
beginning of period		—		6,688		—		553		—		7,241
Cash and cash equivalents at
end of period	$	—	$	2,122	$	—	$	321	$	—	$	2,443

Appvion, Inc. [Member]

Guarantor Financial Information

19.      GUARANTOR FINANCIAL INFORMATION

Appvion (the “Issuer”) has issued senior subordinated notes, as amended, which are guaranteed by PDC (the “Parent Guarantor”), as well as by Rose Holdings Limited, a 100%-owned subsidiary of Appvion (the “Subsidiary Guarantor”).

Presented below is condensed consolidating financial information for the Parent Guarantor, the Issuer, the Subsidiary Guarantor and a 100%-owned non-guarantor subsidiary (the “Non-Guarantor Subsidiary”) as of September 29, 2013 and December 29, 2012, and for the three and nine months ended September 29, 2013 and September 30, 2012. This financial information should be read in conjunction with the consolidated financial statements and other notes related thereto.

The second lien notes, as amended, place restrictions on the subsidiaries of the Issuer that would limit dividend distributions by these subsidiaries.

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING BALANCE SHEET
SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	6,950	$	—	$	66	$	—	$	7,016
Accounts receivable, net		—		80,847		—		2,886		—		83,733
Inventories		—		94,003		—		1,500		—		95,503
Due from parent		—		60,786		—		—		(60,786)		—
Other current assets		60,786		9,206		—		297		—		70,289
Total current assets		60,786		251,792		—		4,749		(60,786)		256,541
Property, plant and equipment, net		—		243,099		—		9		—		243,108
Investment in subsidiaries		(372,597)		14,162		—		—		358,435		—
Other assets		12		59,251		—		14		—		59,277
Total assets	$	(311,799)	$	568,304	$	—	$	4,772	$	297,649	$	558,926
LIABILITIES, REDEEMABLE COMMON STOCK,
COMMON STOCK, PAID-IN CAPITAL, DUE
FROM PARENT, ACCUMULATED DEFICIT AND
ACCUMULATED OTHER COMPREHENSIVE INCOME
Current liabilities
Current portion of long-term debt	$	—	$	50,070	$	—	$	—	$	—	$	50,070
Accounts payable		—		61,731		—		38		—		61,769
Due to (from) parent and affiliated
companies		60,786		11,696		—		(11,696)		(60,786)		—
Other accrued liabilities		—		112,385		—		2,268		—		114,653
Total current liabilities		60,786		235,882		—		(9,390)		(60,786)		226,492
Long-term debt		—		508,192		—		—		—		508,192
Other long-term liabilities		—		196,827		—		—		—		196,827
Redeemable common stock,
common stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income		(372,585)		(372,597)		—		14,162		358,435		(372,585)
Total liabilities, redeemable
common stock, common
stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income	$	(311,799)	$	568,304	$	—	$	4,772	$	297,649	$	558,926

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 29, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	1,593	$	—	$	258	$	—	$	1,851
Accounts receivable, net		—		88,111		—		4,569		—		92,680
Inventories		—		92,939		—		1,410		—		94,349
Due from parent		—		65,000		—		—		(65,000)		—
Other current assets		65,000		5,570		—		50		—		70,620
Total current assets		65,000		253,213		—		6,287		(65,000)		259,500
Property, plant and equipment, net		—		243,254		—		11		—		243,265
Investment in subsidiaries		(352,909)		14,216		—		—		338,693		—
Other assets		12		58,298		—		15		—		58,325
Total assets	$	(287,897)	$	568,981	$	—	$	6,313	$	273,693	$	561,090
LIABILITIES, REDEEMABLE COMMON STOCK,
COMMON STOCK, PAID-IN CAPITAL, DUE
FROM PARENT, ACCUMULATED DEFICIT AND
ACCUMULATED OTHER COMPREHENSIVE INCOME
Current liabilities
Current portion of long-term debt	$	—	$	3,975	$	—	$	—	$	—	$	3,975
Accounts payable		—		68,574		—		26		—		68,600
Due to (from) parent and affiliated
companies		65,000		10,799		—		(10,799)		(65,000)		—
Other accrued liabilities		—		119,690		—		2,412		—		122,102
Total current liabilities		65,000		203,038		—		(8,361)		(65,000)		194,677
Long-term debt		—		511,624		—		—		—		511,624
Other long-term liabilities		—		207,228		—		458		—		207,686
Redeemable common stock,
common stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income		(352,897)		(352,909)		—		14,216		338,693		(352,897)
Total liabilities, redeemable
common stock, common
stock, paid-in capital, due
from parent, accumulated
deficit and accumulated
other comprehensive income	$	(287,897)	$	568,981	$	—	$	6,313	$	273,693	$	561,090

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	612,963	$	—	$	31,977	$	(29,736)	$	615,204
Cost of sales		—		465,510		—		29,892		(29,803)		465,599
Gross profit		—		147,453		—		2,085		67		149,605
Selling, general and administrative
expenses		—		91,080		—		1,479		—		92,559
Operating income		—		56,373		—		606		67		57,046
Interest expense		—		42,092		—		—		—		42,092
Interest income		—		(2)		—		—		—		(2)
Debt extinguishment expense		—		25,101		—		—		—		25,101
Loss in equity investments		10,289		116		—		—		(10,405)		—
Other (income) expense		—		(576)		—		509		129		62
(Loss) income before income taxes		(10,289)		(10,358)		—		97		10,343		(10,207)
(Benefit) provision for income
taxes		—		(69)		—		151		—		82
Net loss		(10,289)		(10,289)		—		(54)		10,343		(10,289)
Other comprehensive loss
Change in retirement plans		(1,192)		(1,192)		—		—		1,192		(1,192)
Realized and unrealized losses
on derivatives		(569)		(569)		—		—		569		(569)
Total other comprehensive loss		(1,761)		(1,761)		—		—		1,761		(1,761)
Comprehensive loss	$	(12,050)	$	(12,050)	$	—	$	(54)	$	12,104	$	(12,050)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	645,294	$	—	$	38,714	$	(39,733)	$	644,275
Cost of sales		—		576,968		—		39,815		(39,395)		577,388
Gross profit (loss)		—		68,326		—		(1,101)		(338)		66,887
Selling, general and administrative
expenses		—		106,354		—		1,553		—		107,907
Environmental expense insurance
recovery		—		(2,188)		—		—		—		(2,188)
Restructuring		—		27,175		—		—		—		27,175
Operating loss		—		(63,015)		—		(2,654)		(338)		(66,007)
Interest expense		—		45,168		—		—		(243)		44,925
Interest income		—		(54)		—		(243)		243		(54)
Loss in equity investments		111,320		2,203		—		—		(113,523)		—
Other expense (income)		—		971		—		(468)		(207)		296
Loss before income taxes		(111,320)		(111,303)		—		(1,943)		113,392		(111,174)
Provision for income taxes		—		17		—		129		—		146
Net loss		(111,320)		(111,320)		—		(2,072)		113,392		(111,320)
Other comprehensive loss
Change in retirement plans		(5,310)		(5,310)		—		—		5,310		(5,310)
Realized and unrealized losses
on derivatives		(2,292)		(2,292)		—		—		2,292		(2,292)
Total other comprehensive loss		(7,602)		(7,602)		—		—		7,602		(7,602)
Comprehensive loss	$	(118,922)	$	(118,922)	$	—	$	(2,072)	$	120,994	$	(118,922)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	202,806	$	—	$	10,140	$	(10,076)	$	202,870
Cost of sales		—		154,494		—		9,965		(10,173)		154,286
Gross profit		—		48,312		—		175		97		48,584
Selling, general and administrative
expenses		—		29,391		—		468		—		29,859
Operating income (loss)		—		18,921		—		(293)		97		18,725
Interest expense		—		12,343		—		—		—		12,343
Interest income		—		(2)		—		—		—		(2)
Debt extinguishment expense		—		334		—		—		—		334
(Income) loss in equity
investments		(6,463)		92		—		—		6,371		—
Other income		—		(194)		—		(228)		104		(318)
Income (loss) before income taxes		6,463		6,348		—		(65)		(6,378)		6,368
(Benefit) provision for income
taxes		—		(115)		—		20		—		(95)
Net income (loss)		6,463		6,463		—		(85)		(6,378)		6,463
Other comprehensive loss
Change in retirement plans		(397)		(397)		—		—		397		(397)
Realized and unrealized losses
on derivatives		(1,581)		(1,581)		—		—		1,581		(1,581)
Total other comprehensive loss		(1,978)		(1,978)		—		—		1,978		(1,978)
Comprehensive income (loss)	$	4,485	$	4,485	$	—	$	(85)	$	(4,400)	$	4,485

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Net sales	$	—	$	211,180	$	—	$	13,158	$	(13,594)	$	210,744
Cost of sales		—		165,723		—		13,717		(13,484)		165,956
Gross profit (loss)		—		45,457		—		(559)		(110)		44,788
Selling, general and administrative
expenses		—		31,209		—		522		—		31,731
Environmental expense insurance
recovery		—		(2,188)		—		—		—		(2,188)
Restructuring		—		703		—		—		—		703
Operating income (loss)		—		15,733		—		(1,081)		(110)		14,542
Interest expense		—		14,901		—		—		(69)		14,832
Interest income		—		(42)		—		(69)		69		(42)
(Income) loss in equity
investments		(516)		424		—		—		92		—
Other income		—		(31)		—		(608)		(131)		(770)
Income (loss) before income taxes		516		481		—		(404)		(71)		522
(Benefit) provision for income
taxes		—		(35)		—		41		—		6
Net income (loss)		516		516		—		(445)		(71)		516
Other comprehensive loss
Change in retirement plans		(528)		(528)		—		—		528		(528)
Realized and unrealized losses
on derivatives		(1,523)		(1,523)		—		—		1,523		(1,523)
Total other comprehensive loss		(2,051)		(2,051)		—		—		2,051		(2,051)
Comprehensive loss	$	(1,535)	$	(1,535)	$	—	$	(445)	$	1,980	$	(1,535)

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 29, 2013
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Cash flows from operating activities:
Net loss	$	(10,289)	$	(10,289)	$	—	$	(54)	$	10,343	$	(10,289)
Adjustments to reconcile net loss
to net cash provided (used)
by operating activities:
Depreciation and amortization		—		22,811		—		2		—		22,813
Other		—		11,279		—		509		—		11,788
Change in assets and liabilities, net		15,935		(24,773)		—		248		(10,343)		(18,933)
Net cash provided (used) by
operating activities		5,646		(972)		—		705		—		5,379
Cash flows from investing activities:
Proceeds from sale of equipment		—		6		—		—		—		6
Additions to property, plant
and equipment		—		(20,266)		—		—		—		(20,266)
Net cash used by investing activities		—		(20,260)		—		—		—		(20,260)
Cash flows from financing activities:
Payments of senior secured
first lien notes payable		—		(305,000)		—		—		—		(305,000)
Proceeds from first lien
term loan		—		331,650		—		—		—		331,650
Payment of industrial
development bond		—		(2,650)		—		—		—		(2,650)
Debt acquisition costs		—		(7,235)		—		—		—		(7,235)
Payments relating to capital
lease obligations		—		(67)		—		—		—		(67)
Proceeds from old revolving line
of credit		—		155,300		—		—		—		155,300
Payments of old revolving line
of credit		—		(159,000)		—		—		—		(159,000)
Proceeds from new revolving line
of credit				129,100								129,100
Payments of new revolving line
of credit				(109,100)								(109,100)
Payments of State of Ohio loans		—		(987)		—		—		—		(987)
Due to (from) parent and affiliated
companies, net		3,424		(2,527)		—		(897)		—		—
Proceeds from issuance of
redeemable common stock		1,651		—		—		—		—		1,651
Payments to redeem common stock		(10,721)		—		—		—		—		(10,721)
Decrease in cash overdraft		—		(2,886)		—		—		—		(2,886)
Net cash (used) provided by
financing activities		(5,646)		26,598		—		(897)		—		20,055
Effect of foreign exchange rate
changes on cash and cash equivalents		—		(9)		—		—		—		(9)
Change in cash and cash equivalents		—		5,357		—		(192)		—		5,165
Cash and cash equivalents at
beginning of period		—		1,593		—		258		—		1,851
Cash and cash equivalents at
end of period	$	—	$	6,950	$	—	$	66	$	—	$	7,016

PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
AND APPVION, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 30, 2012
(unaudited)
(dollars in thousands)
							Non-
	Parent				Subsidiary		Guarantor
	Guarantor		Issuer		Guarantors		Subsidiary		Eliminations		Consolidated
Cash flows from operating activities:
Net loss	$	(111,320)	$	(111,320)	$	—	$	(2,072)	$	113,392	$	(111,320)
Adjustments to reconcile net loss
to net cash provided (used)
by operating activities:
Depreciation and amortization		—		91,166		—		3		—		91,169
Other		—		15,392		—		(468)		—		14,924
Change in assets and liabilities, net		118,309		10,355		—		(358)		(113,392)		14,914
Net cash provided (used) by
operating activities		6,989		5,593		—		(2,895)		—		9,687
Cash flows from investing activities:
Proceeds from sale of equipment		—		20		—		—		—		20
Additions to property, plant
and equipment		—		(9,015)		—		—		—		(9,015)
Net cash used by investing activities		—		(8,995)		—		—		—		(8,995)
Cash flows from financing activities:
Payments relating to capital
lease obligations		—		(46)		—		—		—		(46)
Proceeds from revolving line
of credit				190,300								190,300
Payments of revolving line of credit				(182,750)								(182,750)
Payments of State of Ohio loans		—		(935)		—		—		—		(935)
Proceeds from municipal debt		—		300		—		—		—		300
Due (from) to parent and affiliated
companies, net		(87)		(2,576)		—		2,663		—		—
Proceeds from issuance of
redeemable common stock		1,677		—		—		—		—		1,677
Payments to redeem common stock		(8,579)		—		—		—		—		(8,579)
Decrease in cash overdraft		—		(5,479)		—		—		—		(5,479)
Net cash (used) provided by
financing activities		(6,989)		(1,186)		—		2,663		—		(5,512)
Effect of foreign exchange rate
changes on cash and cash equivalents		—		22		—		—		—		22
Change in cash and cash equivalents		—		(4,566)		—		(232)		—		(4,798)
Cash and cash equivalents at
beginning of period		—		6,688		—		553		—		7,241
Cash and cash equivalents at
end of period	$	—	$	2,122	$	—	$	321	$	—	$	2,443

XML

Condensed Consolidated Statements Of Equity, Redeemable Common Stock, Accumulated Deficit And Accumulated Other Comprehensive Income (USD $) In Thousands, except Share data	Appvion, Inc. [Member] Redeemable Common Stock [Member]	Appvion, Inc. [Member] Paid-In Capital [Member]	Appvion, Inc. [Member] Due From Parent [Member]	Appvion, Inc. [Member] Accumulated Deficit [Member]	Appvion, Inc. [Member] Accumulated Other Comprehensive Income [Member]	Appvion, Inc. [Member]	Redeemable Common Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance at Dec. 31, 2011	$ 10,500	$ 623,305	$ (229,100)	$ (606,328)	$ 13,024		$ 97,615	$ (299,226)	$ 13,024
Balance, shares at Dec. 31, 2011	100						9,212,808
Net loss				(111,320)		(111,320)		(111,320)		(111,320)
Other comprehensive income (loss)					(7,602)	(118,922)			(7,602)	(118,922)
Redemption of redeemable common stock							(8,579)			(8,600)
Redemption of redeemable common stock, shares							(527,492)			(527,492)
Accretion of redeemable common stock							(7,026)	7,026		(7,000)
Change in due from Parent			(5,071)			86
Stock Issued During Period, Value, Employee Stock Ownership Plan							3,508
Stock Issued During Period, Shares, Employee Stock Ownership Plan							232,406
Balance at Sep. 30, 2012	10,500	623,305	(234,171)	(717,648)	5,422		85,518	(403,520)	5,422
Balance, shares at Sep. 30, 2012	100						8,917,722
Balance at Jul. 01, 2012
Net loss						516				516
Other comprehensive income (loss)						(1,535)				(1,535)
Balance at Sep. 30, 2012	10,500	623,305
Balance, shares at Sep. 30, 2012	100
Balance at Dec. 29, 2012	10,500	623,305	(237,257)	(754,779)	5,322		81,704	(439,923)	5,322	(352,897)
Balance, shares at Dec. 29, 2012	100						8,730,118			8,730,118
Net loss				(10,289)		(10,289)		(10,289)		(10,289)
Other comprehensive income (loss)					(1,761)	(12,050)			(1,761)	(12,050)
Redemption of redeemable common stock							(10,721)			(10,700)
Redemption of redeemable common stock, shares							(606,841)			(606,841)
Accretion of redeemable common stock							(3,213)	3,213		(3,200)
Change in due from Parent			(7,638)			(3,424)
Stock Issued During Period, Value, Employee Stock Ownership Plan							3,083
Stock Issued During Period, Shares, Employee Stock Ownership Plan							175,659
Balance at Sep. 29, 2013	10,500	623,305	(244,895)	(765,068)	3,561		70,853	(446,999)	3,561	(372,585)
Balance, shares at Sep. 29, 2013	100					100	8,298,936			8,298,936
Balance at Jun. 30, 2013
Net loss						6,463				6,463
Other comprehensive income (loss)						4,485				4,485
Balance at Sep. 29, 2013	$ 10,500	$ 623,305								$ (372,585)
Balance, shares at Sep. 29, 2013	100					100				8,298,936

XML

Restructuring And Other Related Costs

9 Months Ended

Sep. 29, 2013

Restructuring And Other Related Costs

2.       RESTRUCTURING AND OTHER RELATED COSTS

On February 22, 2012, the Company entered into a long-term supply agreement for the purchase of carbonless and thermal base stock for coating at the Company’s converting facilities. Under the terms of the agreement, the supplier will be the exclusive supplier of certain thermal and carbonless base stock used by the Company. The term of the agreement is 15 years and includes successive five-year renewal terms unless either party gives notice of non-renewal.

In connection with its approval of this supply agreement, the Company’s Board of Directors authorized a plan for the Company to dispose of papermaking assets at its West Carrollton, Ohio facility and move its carbonless coating to the Company’s converting plant in Appleton, Wisconsin. As a result, 314 jobs were eliminated at West Carrollton and 68 jobs added at the Appleton facility. The Company maintains its thermal coating operations at the West Carrollton facility. The Company recorded all associated restructuring expense and other related costs, totaling $106.0 million, during 2012. These include the following for the three and nine months ended September 30, 2012 (dollars in thousands):

	For the Three		For the Nine		Location on Statement
	Months Ended		Months Ended		of Comprehensive
	September 30, 2012		September 30, 2012		Income (Loss)
Employee termination benefits	$	(250)	$	25,281	Restructuring
Decommissioning and other expenses		953		1,894	Restructuring
Accelerated depreciation		887		63,140	Cost of sales
Revaluation of inventory		—		11,078	Cost of sales
Loss on disposal of fixed assets		—		572	Cost of sales
	$	1,590	$	101,965

Of the costs recorded during third quarter 2012, $0.9 million were allocated to the carbonless papers segment and $0.7 million were allocated to the thermal papers segment. Of the costs recorded during the first nine months of 2012, $56.1 million were allocated to the carbonless papers segment and $45.9 million were allocated to the thermal papers segment.

The table below summarizes the components of the restructuring reserve included in the Condensed Consolidated Balance Sheets as of September 29, 2013 and December 29, 2012.

	December 29, 2012		2013 Additions		2013		September 29, 2013
	Reserve		to Reserve		Utilization		Reserve
Exit costs – equipment decommissioning	$	765	$	—	$	(375)	$	390
Employee termination benefits		18,454		—		(454)		18,000
	$	19,219	$	—	$	(829)	$	18,390

Employee termination benefits include severance as well as related benefits and pension costs. At September 29, 2013, $0.8 million of the total restructuring reserve was included in current liabilities and $17.6 million was included in other long-term liabilities. The Company expects any remaining charges for exit costs to be immaterial. At September 29, 2013, it is estimated that cash of approximately $40 million remains to be paid as a result of ceasing papermaking operations at West Carrollton. Of this amount, it is expected that approximately $4 million will be paid during the next twelve months. In addition, approximately $9 million will be disbursed, through 2017, as a result of distributions from the Company’s stock fund to former West Carrollton employees terminated as a result of the restructuring. The remaining $27 million may be paid over a period through 2033.

Appvion, Inc. [Member]

Restructuring And Other Related Costs

2.       RESTRUCTURING AND OTHER RELATED COSTS

On February 22, 2012, the Company entered into a long-term supply agreement for the purchase of carbonless and thermal base stock for coating at the Company’s converting facilities. Under the terms of the agreement, the supplier will be the exclusive supplier of certain thermal and carbonless base stock used by the Company. The term of the agreement is 15 years and includes successive five-year renewal terms unless either party gives notice of non-renewal.

In connection with its approval of this supply agreement, the Company’s Board of Directors authorized a plan for the Company to dispose of papermaking assets at its West Carrollton, Ohio facility and move its carbonless coating to the Company’s converting plant in Appleton, Wisconsin. As a result, 314 jobs were eliminated at West Carrollton and 68 jobs added at the Appleton facility. The Company maintains its thermal coating operations at the West Carrollton facility. The Company recorded all associated restructuring expense and other related costs, totaling $106.0 million, during 2012. These include the following for the three and nine months ended September 30, 2012 (dollars in thousands):

	For the Three		For the Nine		Location on Statement
	Months Ended		Months Ended		of Comprehensive
	September 30, 2012		September 30, 2012		Income (Loss)
Employee termination benefits	$	(250)	$	25,281	Restructuring
Decommissioning and other expenses		953		1,894	Restructuring
Accelerated depreciation		887		63,140	Cost of sales
Revaluation of inventory		—		11,078	Cost of sales
Loss on disposal of fixed assets		—		572	Cost of sales
	$	1,590	$	101,965

Of the costs recorded during third quarter 2012, $0.9 million were allocated to the carbonless papers segment and $0.7 million were allocated to the thermal papers segment. Of the costs recorded during the first nine months of 2012, $56.1 million were allocated to the carbonless papers segment and $45.9 million were allocated to the thermal papers segment.

The table below summarizes the components of the restructuring reserve included in the Condensed Consolidated Balance Sheets as of September 29, 2013 and December 29, 2012.

	December 29, 2012		2013 Additions		2013		September 29, 2013
	Reserve		to Reserve		Utilization		Reserve
Exit costs – equipment decommissioning	$	765	$	—	$	(375)	$	390
Employee termination benefits		18,454		—		(454)		18,000
	$	19,219	$	—	$	(829)	$	18,390

Employee termination benefits include severance as well as related benefits and pension costs. At September 29, 2013, $0.8 million of the total restructuring reserve was included in current liabilities and $17.6 million was included in other long-term liabilities. The Company expects any remaining charges for exit costs to be immaterial. At September 29, 2013, it is estimated that cash of approximately $40 million remains to be paid as a result of ceasing papermaking operations at West Carrollton. Of this amount, it is expected that approximately $4 million will be paid during the next twelve months. In addition, approximately $9 million will be disbursed, through 2017, as a result of distributions from the Company’s stock fund to former West Carrollton employees terminated as a result of the restructuring. The remaining $27 million may be paid over a period through 2033.

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Property, Plant And Equipment

9 Months Ended

Sep. 29, 2013

Property, Plant And Equipment

5.       PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment balances consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Land and improvements	$	9,729	$	9,634
Buildings and improvements		135,170		134,144
Machinery and equipment		672,429		663,915
Software		36,725		33,643
Capital leases		309		304
Construction in progress		15,493		8,631
		869,855		850,271
Accumulated depreciation		(626,747)		(607,006)
	$	243,108	$	243,265

Depreciation expense for the three and nine months ended September 29, 2013 and September 30, 2012 consists of the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
	September 29,		September 30,		September 29,		September 30,
Depreciation Expense	2013		2012		2013		2012
Cost of sales	$	6,365	$	7,364	$	19,116	$	87,487
Selling, general and administrative expenses		661		583		1,983		1,968
	$	7,026	$	7,947	$	21,099	$	89,455

Included in the depreciation expense above for the three and nine months ended September 30, 2012, the Company recorded $0.9 million and $63.1million of accelerated depreciation related to the decommissioning of papermaking assets at the West Carrollton, Ohio facility, respectively.  These amounts were included in cost of sales on the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months and nine months ended September 30, 2012 and in accumulated depreciation as presented above.

Appvion, Inc. [Member]

Property, Plant And Equipment

5.       PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment balances consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Land and improvements	$	9,729	$	9,634
Buildings and improvements		135,170		134,144
Machinery and equipment		672,429		663,915
Software		36,725		33,643
Capital leases		309		304
Construction in progress		15,493		8,631
		869,855		850,271
Accumulated depreciation		(626,747)		(607,006)
	$	243,108	$	243,265

Depreciation expense for the three and nine months ended September 29, 2013 and September 30, 2012 consists of the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
	September 29,		September 30,		September 29,		September 30,
Depreciation Expense	2013		2012		2013		2012
Cost of sales	$	6,365	$	7,364	$	19,116	$	87,487
Selling, general and administrative expenses		661		583		1,983		1,968
	$	7,026	$	7,947	$	21,099	$	89,455

Included in the depreciation expense above for the three and nine months ended September 30, 2012, the Company recorded $0.9 million and $63.1million of accelerated depreciation related to the decommissioning of papermaking assets at the West Carrollton, Ohio facility, respectively.  These amounts were included in cost of sales on the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months and nine months ended September 30, 2012 and in accumulated depreciation as presented above.

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Guarantor Financial Information (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net (loss) income	$ (10,289)	$ (111,320)
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities:
Depreciation and amortization	22,813	91,169
Other	11,788	14,924
Change in assets and liabilities, net	(18,933)	14,914
Net cash provided (used) by operating activities	5,379	9,687
Cash flows from investing activities:
Proceeds from sale of equipment	6	20
Additions to property, plant and equipment	(20,266)	(9,015)
Net cash used by investing activities	(20,260)	(8,995)
Cash flows from financing activities:
Repayments of senior secured first lien notes payable	(305,000)
Proceeds from Issuance of Senior Long-term Debt	331,650
Repayments Of Industrial Redeemable Bonds	(2,650)
Payments of Debt Issuance Costs	(7,235)
Payments of old revolving line of credit	(159,000)	(182,750)
Proceeds from old revolving line of credit	155,300	190,300
Payments relating to capital lease obligations	(67)	(46)
Proceeds from revolving line of credit	129,100
Payments of revolving line of credit	(109,100)
Payments of State of Ohio loans	(987)	(935)
Proceeds from municipal debt		300
Proceeds from issuance of redeemable common stock	1,651	1,677
Payments to redeem common stock	(10,721)	(8,579)
Decrease in cash overdraft	(2,886)	(5,479)
Net cash (used) provided by financing activities	20,055	(5,512)
Effect of foreign exchange rate changes on cash and cash equivalents	(9)	22
Change in cash and cash equivalents	5,165	(4,798)
Cash and cash equivalents at beginning of period	1,851	7,241
Cash and cash equivalents at end of period	7,016	2,443
Paperweight Development Corp. [Member]
Cash flows from operating activities:
Net (loss) income	(10,289)	(111,320)
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities:
Change in assets and liabilities, net	15,935	118,309
Net cash provided (used) by operating activities	5,646	6,989
Cash flows from financing activities:
Due to (from) parent and affiliated companies, net	3,424	(87)
Proceeds from issuance of redeemable common stock	1,651	1,677
Payments to redeem common stock	(10,721)	(8,579)
Net cash (used) provided by financing activities	(5,646)	(6,989)
Issuer [Member]
Cash flows from operating activities:
Net (loss) income	(10,289)	(111,320)
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities:
Depreciation and amortization	22,811	91,166
Other	11,279	15,392
Change in assets and liabilities, net	(24,773)	10,355
Net cash provided (used) by operating activities	(972)	5,593
Cash flows from investing activities:
Proceeds from sale of equipment	6	20
Additions to property, plant and equipment	(20,266)	(9,015)
Net cash used by investing activities	(20,260)	(8,995)
Cash flows from financing activities:
Repayments of senior secured first lien notes payable	(305,000)
Proceeds from Issuance of Senior Long-term Debt	331,650
Repayments Of Industrial Redeemable Bonds	(2,650)
Payments of Debt Issuance Costs	(7,235)
Payments of old revolving line of credit	(159,000)	(182,750)
Proceeds from old revolving line of credit	155,300	190,300
Payments relating to capital lease obligations	(67)	(46)
Proceeds from revolving line of credit	129,100
Payments of revolving line of credit	(109,100)
Payments of State of Ohio loans	(987)	(935)
Proceeds from municipal debt		300
Due to (from) parent and affiliated companies, net	(2,527)	(2,576)
Decrease in cash overdraft	(2,886)	(5,479)
Net cash (used) provided by financing activities	26,598	(1,186)
Effect of foreign exchange rate changes on cash and cash equivalents	(9)	22
Change in cash and cash equivalents	5,357	(4,566)
Cash and cash equivalents at beginning of period	1,593	6,688
Cash and cash equivalents at end of period	6,950	2,122
Non-Guarantor Subsidiary [Member]
Cash flows from operating activities:
Net (loss) income	(54)	(2,072)
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities:
Depreciation and amortization	2	3
Other	509	(468)
Change in assets and liabilities, net	248	(358)
Net cash provided (used) by operating activities	705	(2,895)
Cash flows from financing activities:
Due to (from) parent and affiliated companies, net	(897)	2,663
Net cash (used) provided by financing activities	(897)	2,663
Change in cash and cash equivalents	(192)	(232)
Cash and cash equivalents at beginning of period	258	553
Cash and cash equivalents at end of period	66	321
Eliminations [Member]
Cash flows from operating activities:
Net (loss) income	10,343	113,392
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities:
Change in assets and liabilities, net	$ (10,343)	$ (113,392)

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Other Intangible Assets

9 Months Ended

Sep. 29, 2013

Other Intangible Assets

3.       OTHER INTANGIBLE ASSETS

The Company’s intangible assets consist of the following (dollars in thousands):

	As of September 29, 2013				As of December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Trademarks	$	44,665	$	27,849	$	44,665	$	26,275
Patents		7,474		7,474		7,808		7,808
Customer relationships		5,365		2,921		5,365		2,781
Subtotal		57,504	$	38,244		57,838	$	36,864
Unamortizable intangible assets:
Trademarks		22,865				22,865
Total	$	80,369			$	80,703

Amortization expense for the three and nine months ended September 29, 2013 was $0.6 million and $1.7 million, respectively. Amortization expense for the three and nine months ended September 30, 2012 was $0.6 million and $1.7 million, respectively.

Appvion, Inc. [Member]

Other Intangible Assets

3.       OTHER INTANGIBLE ASSETS

The Company’s intangible assets consist of the following (dollars in thousands):

	As of September 29, 2013				As of December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Trademarks	$	44,665	$	27,849	$	44,665	$	26,275
Patents		7,474		7,474		7,808		7,808
Customer relationships		5,365		2,921		5,365		2,781
Subtotal		57,504	$	38,244		57,838	$	36,864
Unamortizable intangible assets:
Trademarks		22,865				22,865
Total	$	80,369			$	80,703

Amortization expense for the three and nine months ended September 29, 2013 was $0.6 million and $1.7 million, respectively. Amortization expense for the three and nine months ended September 30, 2012 was $0.6 million and $1.7 million, respectively.

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Restructuring And Other Related Costs (Schedule Of Restructuring And Related Costs) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 29, 2012
Restructuring And Other Related Costs [Abstract]
Employee termination benefits	$ (250)	$ 25,281
Decommissioning Expense	953	1,894
Accelerated depreciation	887	63,140
Revaluation of inventory		11,078
Loss on disposal of fixed assets		572
Total restructuring charges	$ 1,590	$ 101,965	$ 106,000

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Inventories (Tables)

9 Months Ended

Sep. 29, 2013

Inventories [Abstract]

Components Of Inventories

	September 29, 2013		December 29, 2012
Finished goods	$	51,843	$	43,243
Raw materials, work in process, stores and spare parts		43,660		51,106
	$	95,503	$	94,349

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Employee Benefits (Tables) (Pension Benefits [Member])

9 Months Ended

Sep. 29, 2013

Pension Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Components Of Net Periodic Pension Cost

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
Pension Benefits	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net periodic benefit cost
Service cost	$	1,268	$	977	$	3,868	$	2,931
Interest cost		4,638		4,867		13,878		14,601
Expected return on plan assets		(6,038)		(5,443)		(18,102)		(16,329)
Amortization of prior service cost		122		122		365		366
Net loss amortization		748		—		748		—
Net periodic benefit cost	$	738	$	523	$	757	$	1,569

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Guarantor Financial Information (Condensed Consolidating Balance Sheet) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012	Sep. 30, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 7,016	$ 1,851	$ 2,443	$ 7,241
Accounts receivable, net	83,733	92,680
Inventories	95,503	94,349
Other current assets	70,289	70,620
Total current assets	256,541	259,500
Property, plant and equipment, net	243,108	243,265
Other assets	59,277	58,325
Total assets	558,926	561,090
Current liabilities
Current portion of long-term debt	50,070	3,975
Accounts payable	61,769	68,600
Other accrued liabilities	114,653	122,102
Total current liabilities	226,492	194,677
Long-term debt	508,192	511,624
Other long-term liabilities	196,827	207,686
Redeemable common stock, common stock, paid-in capital, due from parent, accumulated deficit and accumulated other comprehensive income	(372,585)	(352,897)
Total liabilities, redeemable common stock, accumulated deficit and accumulated other comprehensive income	558,926	561,090
Paperweight Development Corp. [Member]
Current assets
Other current assets	60,786	65,000
Total current assets	60,786	65,000
Investment in subsidiaries	(372,597)	(352,909)
Other assets	12	12
Total assets	(311,799)	(287,897)
Current liabilities
Due to (from) parent and affiliated companies	60,786	65,000
Total current liabilities	60,786	65,000
Redeemable common stock, common stock, paid-in capital, due from parent, accumulated deficit and accumulated other comprehensive income	(372,585)	(352,897)
Total liabilities, redeemable common stock, accumulated deficit and accumulated other comprehensive income	(311,799)	(287,897)
Issuer [Member]
Current assets
Cash and cash equivalents	6,950	1,593	2,122	6,688
Accounts receivable, net	80,847	88,111
Inventories	94,003	92,939
Due from parent	60,786	65,000
Other current assets	9,206	5,570
Total current assets	251,792	253,213
Property, plant and equipment, net	243,099	243,254
Investment in subsidiaries	14,162	14,216
Other assets	59,251	58,298
Total assets	568,304	568,981
Current liabilities
Current portion of long-term debt	50,070	3,975
Accounts payable	61,731	68,574
Due to (from) parent and affiliated companies	11,696	10,799
Other accrued liabilities	112,385	119,690
Total current liabilities	235,882	203,038
Long-term debt	508,192	511,624
Other long-term liabilities	196,827	207,228
Redeemable common stock, common stock, paid-in capital, due from parent, accumulated deficit and accumulated other comprehensive income	(372,597)	(352,909)
Total liabilities, redeemable common stock, accumulated deficit and accumulated other comprehensive income	568,304	568,981
Non-Guarantor Subsidiary [Member]
Current assets
Cash and cash equivalents	66	258	321	553
Accounts receivable, net	2,886	4,569
Inventories	1,500	1,410
Other current assets	297	50
Total current assets	4,749	6,287
Property, plant and equipment, net	9	11
Other assets	14	15
Total assets	4,772	6,313
Current liabilities
Accounts payable	38	26
Due to (from) parent and affiliated companies	(11,696)	(10,799)
Other accrued liabilities	2,268	2,412
Total current liabilities	(9,390)	(8,361)
Other long-term liabilities		458
Redeemable common stock, common stock, paid-in capital, due from parent, accumulated deficit and accumulated other comprehensive income	14,162	14,216
Total liabilities, redeemable common stock, accumulated deficit and accumulated other comprehensive income	4,772	6,313
Eliminations [Member]
Current assets
Due from parent	(60,786)	(65,000)
Total current assets	(60,786)	(65,000)
Investment in subsidiaries	358,435	338,693
Total assets	297,649	273,693
Current liabilities
Due to (from) parent and affiliated companies	(60,786)	(65,000)
Total current liabilities	(60,786)	(65,000)
Redeemable common stock, common stock, paid-in capital, due from parent, accumulated deficit and accumulated other comprehensive income	358,435	338,693
Total liabilities, redeemable common stock, accumulated deficit and accumulated other comprehensive income	$ 297,649	$ 273,693

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 29, 2013

Sep. 30, 2012

Accumulated Other Comprehensive Income [Abstract]

Schedule Of Changes In Accumulated Other Comprehensive Income By Component

	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 29, 2012	$	6,453	$	(1,131)	$	5,322
Other comprehensive loss before reclassifications		—		(1,390)		(1,390)
Amounts reclassified from accumulated other comprehensive income		(1,192)		821		(371)
Net other comprehensive loss		(1,192)		(569)		(1,761)
Balance, September 29, 2013	$	5,261	$	(1,700)	$	3,561
	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 31, 2011	$	11,265	$	1,759	$	13,024
Other comprehensive loss before reclassifications		—		(295)		(295)
Amounts reclassified from accumulated other comprehensive income		(5,310)		(1,997)		(7,307)
Net other comprehensive loss		(5,310)		(2,292)		(7,602)
Balance, September 30, 2012	$	5,955	$	(533)	$	5,422

The changes in accumulated other comprehensive income by component for the nine months ended September 30, 2012 were as follows (dollars in thousands):
	Change in		Hedging
	Retiree Plans		Activities		Total
Balance, December 31, 2011	$	11,265	$	1,759	$	13,024
Other comprehensive loss before reclassifications		—		(295)		(295)
Amounts reclassified from accumulated other
comprehensive income		(5,310)		(1,997)		(7,307)
Net other comprehensive loss		(5,310)		(2,292)		(7,602)
Balance, September 30, 2012	$	5,955	$	(533)	$	5,422

Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income

		Amount Reclassified from
		Accumulated Other
		Comprehensive Income
										Affected Line Item
	For the Three		For the Three		For the Nine		For the Nine			in Consolidated
Details about Accumulated	Months Ended		Months Ended		Months Ended		Months Ended			Statements of
Other Comprehensive	September 29,		September 30,		September 29,		September 30,			Comprehensive Income
Income Components	2013		2012		2013		2012			(Loss)
Changes in retiree plans
Amortization of prior service credit	$	397	$	528	$	1,192	$	5,310	(a)
Hedging activities
Foreign exchange contracts	$	(333)	$	1,070	$	(624)	$	2,653		Net sales
Commodity contracts		—		(262)		(197)		(656)		Cost of sales
	$	(333)	$	808	$	(821)	$	1,997
Total reclassifications for the period	$	64	$	1,336	$	371	$	7,307
(a) These accumulated other comprehensive income components are included in the computation of net periodic
pension cost. See Note 9, Employee Benefits, and Note 10, Postretirement Benefit Plans other than Pensions.

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Guarantor Financial Information (Narrative) (Details)	9 Months Ended
	Sep. 29, 2013
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Ownership percentage in subsidiaries	100.00%
Rose Holdings Limited [Member]
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Ownership percentage in subsidiaries	100.00%
Non-Guarantor Subsidiary [Member]
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Ownership percentage in subsidiaries	100.00%

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Postretirement Benefit Plans Other Than Pensions (Narrative) (Details) (Other Postretirement Benefits [Member], USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Curtailment gain	$ 3,726

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Other Current And Noncurrent Assets (Schedule Of Other Current Assets) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Other Current Assets [Line Items]
Other	$ 9,503	$ 5,620
Other current assets	70,289	70,620
Windward Prospects Ltd [Member]
Other Current Assets [Line Items]
Environmental indemnification receivable	$ 60,786	$ 65,000

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Inventories (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Inventories [Abstract]
Stores and spare parts inventory	$ 15.8	$ 15.9

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Accounts receivable, allowance for doubtful accounts	$ 1,041	$ 1,077
Property, plant and equipment, accumulated depreciation	626,747	607,006
Redeemable common stock, par value	$ 0.01	$ 0.01
Redeemable common stock, shares authorized	30,000,000	30,000,000
Redeemable common stock, shares issued	8,298,936	8,730,118
Redeemable common stock, shares outstanding	8,298,936	8,730,118
Appvion, Inc. [Member]
Accounts receivable, allowance for doubtful accounts	1,041	1,077
Property, plant and equipment, accumulated depreciation	$ 626,747	$ 607,006
Redeemable common stock, par value	$ 100	$ 100
Redeemable common stock, shares authorized	130,000	130,000
Redeemable common stock, shares issued	100	100
Redeemable common stock, shares outstanding	100

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New Accounting Pronouncements

9 Months Ended

Sep. 29, 2013

New Accounting Pronouncements

8.       NEW ACCOUNTING PRONOUNCEMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date." This guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: (a) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) Any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation. ASU 2013-04 is effective for the Company's annual and interim periods beginning after December 15, 2013, though early adoption is permitted, and retrospective application is required for all prior periods presented. The Company is currently evaluating the effects, if any, the adoption will have on its consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." This update adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The updated standard is effective prospectively for the Company's annual and interim periods beginning after December 15, 2012. As required, the Company adopted this guidance beginning in the first quarter ended March 31, 2013 and the disclosures have been included in its condensed consolidated financial statements in Note 18, Accumulated other Comprehensive Income.

In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” It provides the option to perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not an indefinite-lived intangible asset is impaired. ASU 2012‑02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, though early adoption is permitted. As required, the Company adopted this guidance beginning in the first quarter ended March 31, 2013, and there was no impact to the Company’s condensed consolidated financial statements as a result of adoption.

In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities”. It expands required disclosures related to the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. It requires disclosure of net and gross positions in covered financial instruments and derivative instruments which are either (1) offset in accordance with ASC Sections 210-20-45 or 815-10-45, or (2) subject to an enforceable netting or other similar arrangement. To clarify the guidance provided in ASU 2011-11, the FASB issued ASU No. 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities" in January 2013. It clarifies the scope of the guidance to include derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to master netting or similar arrangements. The amendments are effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The Company will be required to adopt this guidance as of its fiscal year beginning December 29, 2013 and is evaluating the effects, if any, the adoption will have on its consolidated financial statements.

Appvion, Inc. [Member]

New Accounting Pronouncements

8.       NEW ACCOUNTING PRONOUNCEMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date." This guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: (a) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) Any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation. ASU 2013-04 is effective for the Company's annual and interim periods beginning after December 15, 2013, though early adoption is permitted, and retrospective application is required for all prior periods presented. The Company is currently evaluating the effects, if any, the adoption will have on its consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." This update adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The updated standard is effective prospectively for the Company's annual and interim periods beginning after December 15, 2012. As required, the Company adopted this guidance beginning in the first quarter ended March 31, 2013 and the disclosures have been included in its condensed consolidated financial statements in Note 18, Accumulated other Comprehensive Income.

In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” It provides the option to perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not an indefinite-lived intangible asset is impaired. ASU 2012‑02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, though early adoption is permitted. As required, the Company adopted this guidance beginning in the first quarter ended March 31, 2013, and there was no impact to the Company’s condensed consolidated financial statements as a result of adoption.

In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities”. It expands required disclosures related to the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. It requires disclosure of net and gross positions in covered financial instruments and derivative instruments which are either (1) offset in accordance with ASC Sections 210-20-45 or 815-10-45, or (2) subject to an enforceable netting or other similar arrangement. To clarify the guidance provided in ASU 2011-11, the FASB issued ASU No. 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities" in January 2013. It clarifies the scope of the guidance to include derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to master netting or similar arrangements. The amendments are effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The Company will be required to adopt this guidance as of its fiscal year beginning December 29, 2013 and is evaluating the effects, if any, the adoption will have on its consolidated financial statements.

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Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net loss	$ (10,289)	$ (111,320)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	21,099	89,455
Amortization of intangible assets	1,714	1,714
Impaired inventory revaluation		11,078
Amortization of financing fees	1,916	1,968
Amortization of bond discount	696	792
Employer 401(k) non-cash matching contributions	2,021	2,332
Foreign exchange loss	71	108
Non-cash loss (gain) on hedging	197	(1,983)
Loss on disposals of equipment	131	629
Loss on debt extinguishment	6,756
(Increase)/decrease in assets and increase/(decrease) in liabilities:
Accounts receivable	9,313	(6,032)
Inventories	(1,331)	(6,663)
Other current assets	(3,886)	(1,544)
Accounts payable and other accrued liabilities	(8,325)	37,050
Accrued pension	(12,107)	(23,801)
Other, net	(2,597)	15,904
Net cash provided (used) by operating activities	5,379	9,687
Cash flows from investing activities:
Proceeds from sale of equipment	6	20
Additions to property, plant and equipment	(20,266)	(9,015)
Net cash used by investing activities	(20,260)	(8,995)
Cash flows from financing activities:
Repayments Of Senior Secured Debt	(305,000)
Proceeds from Issuance of Senior Long-term Debt	331,650
Repayments Of Industrial Redeemable Bonds	(2,650)
Payments of Debt Issuance Costs	(7,235)
Payments relating to capital lease obligations	(67)	(46)
Proceeds From Old Long Term Lines Of Credit	155,300	190,300
Repayments Of Old Long Term Lines Of Credit	(159,000)	(182,750)
Proceeds from revolving line of credit	129,100
Payments of revolving line of credit	(109,100)
Payments of State of Ohio loans	(987)	(935)
Proceeds from municipal debt		300
Proceeds from Issuance of Common Stock	1,651	1,677
Payments to redeem common stock	(10,721)	(8,579)
Decrease in cash overdraft	(2,886)	(5,479)
Net cash (used) provided by financing activities	20,055	(5,512)
Effect of foreign exchange rate changes on cash and cash equivalents	(9)	22
Change in cash and cash equivalents	5,165	(4,798)
Cash and cash equivalents at beginning of period	1,851	7,241
Cash and cash equivalents at end of period	7,016	2,443
Appvion, Inc. [Member]
Cash flows from operating activities:
Net loss	(10,289)	(111,320)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	21,099	89,455
Amortization of intangible assets	1,714	1,714
Impaired inventory revaluation		11,078
Amortization of financing fees	1,916	1,968
Amortization of bond discount	696	792
Employer 401(k) non-cash matching contributions	2,021	2,332
Foreign exchange loss	71	108
Non-cash loss (gain) on hedging	197	(1,983)
Loss on disposals of equipment	131	629
Loss on debt extinguishment	6,756
(Increase)/decrease in assets and increase/(decrease) in liabilities:
Accounts receivable	9,313	(6,032)
Inventories	(1,331)	(6,663)
Other current assets	(3,886)	(1,544)
Accounts payable and other accrued liabilities	(12,539)	31,893
Accrued pension	(12,107)	(23,801)
Other, net	(4,029)	14,073
Net cash provided (used) by operating activities	(267)	2,699
Cash flows from investing activities:
Proceeds from sale of equipment	6	20
Additions to property, plant and equipment	(20,266)	(9,015)
Net cash used by investing activities	(20,260)	(8,995)
Cash flows from financing activities:
Repayments Of Senior Secured Debt	(305,000)
Proceeds from Issuance of Senior Long-term Debt	331,650
Repayments Of Industrial Redeemable Bonds	(2,650)
Payments of Debt Issuance Costs	(7,235)
Payments relating to capital lease obligations	(67)	(46)
Proceeds From Old Long Term Lines Of Credit	155,300	190,300
Repayments Of Old Long Term Lines Of Credit	(159,000)	(182,750)
Proceeds from revolving line of credit	129,100
Payments of revolving line of credit	(109,100)
Payments of State of Ohio loans	(987)	(935)
Proceeds from municipal debt		300
Change in due from Parent	(3,424)	86
Decrease in cash overdraft	(2,886)	(5,479)
Net cash (used) provided by financing activities	25,701	1,476
Effect of foreign exchange rate changes on cash and cash equivalents	(9)	22
Change in cash and cash equivalents	5,165	(4,798)
Cash and cash equivalents at beginning of period	1,851	7,241
Cash and cash equivalents at end of period	$ 7,016	$ 2,443

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Commitments And Contingencies (Details) (USD $)	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended					12 Months Ended				9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2012 Appvion, Inc. [Member]	Sep. 30, 2012 Appvion, Inc. [Member]	Sep. 29, 2013 Minimum [Member]	Sep. 29, 2013 Maximum [Member]	Sep. 29, 2013 West Carrollton Mill [Member]	Sep. 29, 2013 Lower Fox River [Member]	Dec. 31, 2011 Lower Fox River [Member]	Dec. 31, 2008 Lower Fox River [Member]	Mar. 31, 2013 Lower Fox River [Member]	Sep. 29, 2013 Lower Fox River [Member] Appvion, Inc. [Member]	Sep. 29, 2013 Lower Fox River [Member] Minimum [Member]	Sep. 29, 2013 Lower Fox River [Member] Maximum [Member]	Dec. 31, 2012 Lower Fox River [Member] NCR And Appleton's Independent Analysis And Estimate [Member]	Sep. 29, 2013 Lower Fox River [Member] Windward Prospects Ltd (AWA) [Member]	Jan. 01, 2011 Lower Fox River [Member] Windward Prospects Ltd (AWA) [Member] Appvion, Inc. [Member]
Loss Contingencies [Line Items]
Current carrying amount of liability under the Arbitration												$ 60,800,000
Natural resource damages, value													10,000,000	310,000,000
Natural resource damages, payment period													10 years
Estimated liability											60,800,000				115,000,000
Responsibility for PCB discharged, percentage					8.00%	10.00%
Idemnification Amount, Up To								75,000,000
Idemnification Amount, In Excess Of								100,000,000
Amount paid in satisfaction of amounts not covered by indemnification										25,000,000
Loss contingency, aggregate amount paid																277,700,000
Indemnification receivable												60,800,000				60,800,000
Amount receivable in excess of amount reimbursable																	8,900,000
Funds received from AWA									6,200,000
Environmental expense insurance recovery	(2,188,000)	(2,188,000)	(2,188,000)	(2,188,000)
Loss contingency range of possible loss maximum							10,500,000
Loss contingency short-term capital cost estimate							3,000,000
Period of incurrence of environmental cost							30 years
Percentage of indemnification below basis							50.00%
Basis amount for determination of indemnification amount							5,000,000
Percentage of indemnification above basis							100.00%
Increase (Decrease) in Insurance Settlements Receivable	$ 2,200,000

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Current assets
Cash and cash equivalents	$ 7,016	$ 1,851
Accounts receivable, less allowance for doubtful accounts of $1,041 and $1,077, respectively	83,733	92,680
Inventories	95,503	94,349
Other current assets	70,289	70,620
Total current assets	256,541	259,500
Property, plant and equipment, net of accumulated depreciation of $626,747 and $607,006, respectively	243,108	243,265
Intangible assets, net	42,125	43,839
Other assets	17,152	14,486
Total assets	558,926	561,090
Current liabilities
Current portion of long-term debt	50,070	3,975
Accounts payable	61,769	68,600
Accrued interest	12,503	2,467
Other accrued liabilities	102,150	119,635
Total current liabilities	226,492	194,677
Long-term debt	508,192	511,624
Postretirement benefits other than pension	36,502	38,440
Accrued pension	124,609	137,081
Other long-term liabilities	35,716	32,165
Common stock	70,853	81,704
Accumulated deficit	(446,999)	(439,923)
Accumulated other comprehensive income	3,561	5,322
Total liabilities, redeemable common stock, accumulated deficit and accumulated other comprehensive income	558,926	561,090
Appvion, Inc. [Member]
Current assets
Cash and cash equivalents	7,016	1,851
Accounts receivable, less allowance for doubtful accounts of $1,041 and $1,077, respectively	83,733	92,680
Inventories	95,503	94,349
Other current assets	70,289	70,620
Total current assets	256,541	259,500
Property, plant and equipment, net of accumulated depreciation of $626,747 and $607,006, respectively	243,108	243,265
Intangible assets, net	42,125	43,839
Other assets	17,140	14,474
Total assets	558,914	561,078
Current liabilities
Current portion of long-term debt	50,070	3,975
Accounts payable	61,769	68,600
Accrued interest	12,503	2,467
Other accrued liabilities	102,150	119,635
Total current liabilities	226,492	194,677
Long-term debt	508,192	511,624
Postretirement benefits other than pension	36,502	38,440
Accrued pension	124,609	137,081
Other long-term liabilities	35,716	32,165
Total liabilities	931,511	913,987
Common stock	10,500	10,500
Paid in capital	623,305	623,305
Due from parent	(244,895)	(237,257)
Accumulated deficit	(765,068)	(754,779)
Accumulated other comprehensive income	3,561	5,322
Total equity	(372,597)	(352,909)
Total liabilities, redeemable common stock, accumulated deficit and accumulated other comprehensive income	$ 558,914	$ 561,078

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Other Current And Noncurrent Assets (Schedule Of Other Noncurrent Assets) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Other Noncurrent Assets [Line Items]
Deferred debt issuance costs	$ 8,953	$ 7,736
Other	8,199	6,750
Other noncurrent assets	17,152	14,486
Appvion, Inc. [Member]
Other Noncurrent Assets [Line Items]
Deferred debt issuance costs	8,953	7,736
Other	8,187	6,738
Other noncurrent assets	$ 17,140	$ 14,474

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Property, Plant And Equipment (Tables)

9 Months Ended

Sep. 29, 2013

Property, Plant And Equipment [Abstract]

Components Of Property, Plant And Equipment

	September 29, 2013		December 29, 2012
Land and improvements	$	9,729	$	9,634
Buildings and improvements		135,170		134,144
Machinery and equipment		672,429		663,915
Software		36,725		33,643
Capital leases		309		304
Construction in progress		15,493		8,631
		869,855		850,271
Accumulated depreciation		(626,747)		(607,006)
	$	243,108	$	243,265

Schedule Of Depreciation Expense

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
	September 29,		September 30,		September 29,		September 30,
Depreciation Expense	2013		2012		2013		2012
Cost of sales	$	6,365	$	7,364	$	19,116	$	87,487
Selling, general and administrative expenses		661		583		1,983		1,968
	$	7,026	$	7,947	$	21,099	$	89,455

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Segment Information

9 Months Ended

Sep. 29, 2013

Segment Information

17.      SEGMENT INFORMATION

The Company’s reportable segments are as follows: carbonless papers, thermal papers and Encapsys®. Management evaluates the performance of the segments based primarily on operating income (loss). Items excluded from the determination of segment operating income (loss) are unallocated corporate charges, interest income, interest expense, debt extinguishment expense, foreign exchange (gain) loss, and other expense. The Company does not allocate total assets internally in assessing operating performance and does not track capital expenditures by segment. Net sales, operating income (loss) and depreciation and amortization, as determined by the Company for its reportable segments, are as follows (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net sales
Carbonless papers	$	88,791	$	95,857	$	266,818	$	315,733
Thermal papers		105,639		106,534		323,033		304,946
		194,430		202,391		589,851		620,679
Encapsys		12,437		12,804		38,505		38,998
Intersegment (A)		(3,997)		(4,451)		(13,152)		(15,402)
Total	$	202,870	$	210,744	$	615,204	$	644,275
Operating income (loss)
Carbonless papers	$	10,777	$	9,968	$	30,460	$	(30,782)
Thermal papers		7,769		1,851		26,299		(28,210)
		18,546		11,819		56,759		(58,992)
Encapsys		2,810		3,369		9,500		8,443
Unallocated corporate charges		(2,032)		13		(7,223)		(13,158)
Intersegment (A)		(599)		(659)		(1,990)		(2,300)
Total	$	18,725	$	14,542	$	57,046	$	(66,007)
Depreciation and amortization (B)
Carbonless papers	$	3,758	$	4,645	$	11,264	$	49,524
Thermal papers		3,355		3,426		10,064		39,408
		7,113		8,071		21,328		88,932
Encapsys		466		463		1,430		2,217
Unallocated corporate charges		19		(16)		55		20
Total	$	7,598	$	8,518	$	22,813	$	91,169

(A) Intersegment represents the portion of the Encapsys segment financial results relating to microencapsulated products provided internally for the production of carbonless papers.

(B) Depreciation and amortization are allocated to the reportable segments based on the amount of activity provided by departments to the respective product lines in each reportable segment.

During the three and nine months ended September 30, 2012, the Company recorded $1.6 million and $102.0 million, respectively, in restructuring expense and other costs related to the ceasing of papermaking operations at the West Carrollton, Ohio facility (see Note 2, Restructuring and Other Related Costs). The operating income (loss) of the carbonless papers segment for the three and nine months ended September 30, 2012 included $0.9 million and $56.1 million, respectively, of restructuring and other related charges and $0.7 million and $45.9 million, respectively, was allocated to the thermal papers segment. A $6.8 million settlement charge relating to the full withdrawal from a multi-employer pension plan was also recorded in the thermal papers segment during the prior year quarter. Unallocated corporate charges for the three and nine months ended September 30, 2012 included $0.3 million and $7.2 million, respectively, of transaction costs for a discontinued business combination. Also, third quarter 2012 included $2.2 million of environmental expense insurance recovery.

Of the $1.6 million and $102.0 million of restructuring and other related charges recorded during the three and nine months ended September 30, 2012, $0.9 million and $63.1 million, respectively, was related to accelerated depreciation of the decommissioned papermaking assets. The carbonless papers segment was charged with $0.5 million and $34.7 million of this depreciation, respectively. The thermal papers segment was charged with $0.4million and $28.4 million of this depreciation, respectively.

Appvion, Inc. [Member]

Segment Information

17.      SEGMENT INFORMATION

The Company’s reportable segments are as follows: carbonless papers, thermal papers and Encapsys®. Management evaluates the performance of the segments based primarily on operating income (loss). Items excluded from the determination of segment operating income (loss) are unallocated corporate charges, interest income, interest expense, debt extinguishment expense, foreign exchange (gain) loss, and other expense. The Company does not allocate total assets internally in assessing operating performance and does not track capital expenditures by segment. Net sales, operating income (loss) and depreciation and amortization, as determined by the Company for its reportable segments, are as follows (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net sales
Carbonless papers	$	88,791	$	95,857	$	266,818	$	315,733
Thermal papers		105,639		106,534		323,033		304,946
		194,430		202,391		589,851		620,679
Encapsys		12,437		12,804		38,505		38,998
Intersegment (A)		(3,997)		(4,451)		(13,152)		(15,402)
Total	$	202,870	$	210,744	$	615,204	$	644,275
Operating income (loss)
Carbonless papers	$	10,777	$	9,968	$	30,460	$	(30,782)
Thermal papers		7,769		1,851		26,299		(28,210)
		18,546		11,819		56,759		(58,992)
Encapsys		2,810		3,369		9,500		8,443
Unallocated corporate charges		(2,032)		13		(7,223)		(13,158)
Intersegment (A)		(599)		(659)		(1,990)		(2,300)
Total	$	18,725	$	14,542	$	57,046	$	(66,007)
Depreciation and amortization (B)
Carbonless papers	$	3,758	$	4,645	$	11,264	$	49,524
Thermal papers		3,355		3,426		10,064		39,408
		7,113		8,071		21,328		88,932
Encapsys		466		463		1,430		2,217
Unallocated corporate charges		19		(16)		55		20
Total	$	7,598	$	8,518	$	22,813	$	91,169

(A) Intersegment represents the portion of the Encapsys segment financial results relating to microencapsulated products provided internally for the production of carbonless papers.

(B) Depreciation and amortization are allocated to the reportable segments based on the amount of activity provided by departments to the respective product lines in each reportable segment.

During the three and nine months ended September 30, 2012, the Company recorded $1.6 million and $102.0 million, respectively, in restructuring expense and other costs related to the ceasing of papermaking operations at the West Carrollton, Ohio facility (see Note 2, Restructuring and Other Related Costs). The operating income (loss) of the carbonless papers segment for the three and nine months ended September 30, 2012 included $0.9 million and $56.1 million, respectively, of restructuring and other related charges and $0.7 million and $45.9 million, respectively, was allocated to the thermal papers segment. A $6.8 million settlement charge relating to the full withdrawal from a multi-employer pension plan was also recorded in the thermal papers segment during the prior year quarter. Unallocated corporate charges for the three and nine months ended September 30, 2012 included $0.3 million and $7.2 million, respectively, of transaction costs for a discontinued business combination. Also, third quarter 2012 included $2.2 million of environmental expense insurance recovery.

Of the $1.6 million and $102.0 million of restructuring and other related charges recorded during the three and nine months ended September 30, 2012, $0.9 million and $63.1 million, respectively, was related to accelerated depreciation of the decommissioned papermaking assets. The carbonless papers segment was charged with $0.5 million and $34.7 million of this depreciation, respectively. The thermal papers segment was charged with $0.4million and $28.4 million of this depreciation, respectively.

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Other Intangible Assets (Schedule Of Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Sep. 30, 2012
Intangible Assets [Line Items]
Amortizable intangible assets, Gross Carrying Amount	$ 57,504	$ 57,838
Amortizable intangible assets, Accumulated Amortization	38,244	36,864
Total intangible assets gross	80,369	80,703
Trademarks [Member]
Intangible Assets [Line Items]
Amortizable intangible assets, Gross Carrying Amount	44,665	44,665
Amortizable intangible assets, Accumulated Amortization	27,849	26,275
Unamortizable intangible assets, Gross Carrying Amount	22,865	22,865
Patents [Member]
Intangible Assets [Line Items]
Amortizable intangible assets, Gross Carrying Amount	7,474	7,808
Amortizable intangible assets, Accumulated Amortization	7,474	7,808
Customer Relationships [Member]
Intangible Assets [Line Items]
Amortizable intangible assets, Gross Carrying Amount	5,365	5,365
Amortizable intangible assets, Accumulated Amortization	$ 2,921	$ 2,781

XML

Employee Benefits (Components Of Net Periodic Pension Cost) (Details) (Pension Benefits [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1,268	$ 977	$ 3,868	$ 2,931
Interest cost	4,638	4,867	13,878	14,601
Expected return on plan assets	(6,038)	(5,443)	(18,102)	(16,329)
Amortization of prior service cost	122	122	365	366
Amortization of actuarial loss	748		748
Net periodic benefit income	$ 738	$ 523	$ 757	$ 1,569

XML

Fair Value Measurements (Schedule Of Carrying Amount And Fair Value Of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	$ 558,262	$ 515,599
Carrying Amount [Member] | Senior Subordinated Notes Payable, Due June 2014 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	32,195	32,195
Carrying Amount [Member] | Senior Secured First Lien Notes Payable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value		301,776
Carrying Amount [Member] | Second Lien Notes Payable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	161,766	161,766
Carrying Amount [Member] | SeniorSecuredFirstLienNotesPayableDue2019 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	331,776
Carrying Amount [Member] | Revolving Credit Facility [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	20,000	3,700
Carrying Amount [Member] | State Of Ohio Loans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	6,225	7,212
Carrying Amount [Member] | Columbia County, Wisconsin Municipal Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	300	300
Carrying Amount [Member] | Industrial Development Bonds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	6,000	8,650
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	579,252	547,617
Fair Value [Member] | Senior Subordinated Notes Payable, Due June 2014 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	32,155	32,356
Fair Value [Member] | Senior Secured First Lien Notes Payable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value		319,883
Fair Value [Member] | Second Lien Notes Payable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	182,796	175,516
Fair Value [Member] | SeniorSecuredFirstLienNotesPayableDue2019 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	331,776
Fair Value [Member] | Revolving Credit Facility [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	20,000	3,700
Fair Value [Member] | State Of Ohio Loans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	6,225	7,212
Fair Value [Member] | Columbia County, Wisconsin Municipal Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	300	300
Fair Value [Member] | Industrial Development Bonds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Instruments, Fair Value	$ 6,000	$ 8,650

XML

Basis Of Presentation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012	Dec. 29, 2012
Accounts payable	$ 61,769		$ 61,769		$ 68,600
Selling, general and administrative expenses	29,859	31,731	92,559	107,907
Cost of sales	154,286	165,956	465,599	577,388
Ownership percentage by parent			100.00%
Net loss	6,463	516	(10,289)	(111,320)
Effect Of Change [Member]
Net loss		2,600		4,300
Out Of Period Adjustment [Member]
Accounts payable	(1,500)		(1,500)
Selling, general and administrative expenses	(100)
Cost of sales	(1,400)
Appvion, Inc. [Member]
Accounts payable	61,769		61,769		68,600
Selling, general and administrative expenses	29,859	31,731	92,559	107,907
Cost of sales	154,286	165,956	465,599	577,388
Ownership percentage by parent			100.00%
Net loss	$ 6,463	$ 516	$ (10,289)	$ (111,320)

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 29, 2013

Fair Value Measurements [Abstract]

Schedule Of Carrying Amount And Fair Value Of Financial Instruments

	September 29, 2013				December 29, 2012
	Carrying		Fair		Carrying		Fair
Financial Instruments	Amount		Value		Amount		Value
Senior subordinated notes payable	$	32,195	$	32,155	$	32,195	$	32,356
Senior secured first lien notes payable		—		—		301,776		319,883
Second lien notes payable		161,766		182,796		161,766		175,516
First lien term loan		331,776		331,776		—		—
Revolving credit facility		20,000		20,000		3,700		3,700
State of Ohio loans		6,225		6,225		7,212		7,212
Columbia County, Wisconsin municipal debt		300		300		300		300
Industrial development bonds		6,000		6,000		8,650		8,650
	$	558,262	$	579,252	$	515,599	$	547,617

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Segment Information (Tables)

9 Months Ended

Sep. 29, 2013

Segment Information [Abstract]

Schedule Of Segment Reporting Information

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net sales
Carbonless papers	$	88,791	$	95,857	$	266,818	$	315,733
Thermal papers		105,639		106,534		323,033		304,946
		194,430		202,391		589,851		620,679
Encapsys		12,437		12,804		38,505		38,998
Intersegment (A)		(3,997)		(4,451)		(13,152)		(15,402)
Total	$	202,870	$	210,744	$	615,204	$	644,275
Operating income (loss)
Carbonless papers	$	10,777	$	9,968	$	30,460	$	(30,782)
Thermal papers		7,769		1,851		26,299		(28,210)
		18,546		11,819		56,759		(58,992)
Encapsys		2,810		3,369		9,500		8,443
Unallocated corporate charges		(2,032)		13		(7,223)		(13,158)
Intersegment (A)		(599)		(659)		(1,990)		(2,300)
Total	$	18,725	$	14,542	$	57,046	$	(66,007)
Depreciation and amortization (B)
Carbonless papers	$	3,758	$	4,645	$	11,264	$	49,524
Thermal papers		3,355		3,426		10,064		39,408
		7,113		8,071		21,328		88,932
Encapsys		466		463		1,430		2,217
Unallocated corporate charges		19		(16)		55		20
Total	$	7,598	$	8,518	$	22,813	$	91,169

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Other Accrued Liabilities

9 Months Ended

Sep. 29, 2013

Other Accrued Liabilities

7.      OTHER ACCRUED LIABILITIES

Other accrued liabilities, as presented in the current liabilities section of the balance sheet, consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Compensation	$	6,807	$	14,800
Trade discounts		12,921		16,796
Workers’ compensation		8,325		4,875
Accrued insurance		1,799		1,896
Other accrued taxes		1,264		1,494
Postretirement benefits other than pension		3,248		3,248
Fox River Liabilities		60,786		65,000
Restructuring reserve		822		1,219
Other		6,178		10,307
	$	102,150	$	119,635

Appvion, Inc. [Member]

Other Accrued Liabilities

7.      OTHER ACCRUED LIABILITIES

Other accrued liabilities, as presented in the current liabilities section of the balance sheet, consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Compensation	$	6,807	$	14,800
Trade discounts		12,921		16,796
Workers’ compensation		8,325		4,875
Accrued insurance		1,799		1,896
Other accrued taxes		1,264		1,494
Postretirement benefits other than pension		3,248		3,248
Fox River Liabilities		60,786		65,000
Restructuring reserve		822		1,219
Other		6,178		10,307
	$	102,150	$	119,635

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Derivative Instruments And Hedging Activities (Schedule Of Amount Of Losses (Gains) On Derivative Instruments) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Interest Rate Swap [Member] | Designated As A Hedge [Member]
Derivative [Line Items]
Losses (gains) recognized in accumulated other comprehensive loss			$ 1,334
Losses (Gains) Recognized In Accumulated Other Comprehensive Loss [Member] | Designated As A Hedge [Member]
Derivative [Line Items]
Losses (gains) recognized in accumulated other comprehensive loss			365	(190)
Pulp Fixed Swap [Member] | Designated As A Hedge [Member]
Derivative [Line Items]
Losses (gains) recognized in accumulated other comprehensive loss				722
Net Sales [Member] | Foreign Currency Exchange Derivatives [Member] | Designated As A Hedge [Member]
Derivative [Line Items]
Losses (gains) included in the Statement of Operations	333	(1,070)	624	(2,653)
Cost Of Sales [Member] | Natural Gas Fixed Swap [Member] | Not Designated As A Hedge [Member]
Derivative [Line Items]
Losses (gains) included in the Statement of Operations	(87)	(29)	(107)	239
Cost Of Sales [Member] | Pulp Fixed Swap [Member] | Designated As A Hedge [Member]
Derivative [Line Items]
Losses (gains) included in the Statement of Operations		262	197	656
Cost Of Sales [Member] | Pulp Fixed Swap [Member] | Not Designated As A Hedge [Member]
Derivative [Line Items]
Losses (gains) included in the Statement of Operations				10
Other Expense [Member] | Pulp Fixed Swap [Member] | Designated As A Hedge [Member]
Derivative [Line Items]
Losses (gains) included in the Statement of Operations		$ 94		$ 166

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Other Current And Noncurrent Assets (Tables)

9 Months Ended

Sep. 29, 2013

Schedule Of Other Current Assets

	September 29, 2013		December 29, 2012
Environmental indemnification receivable	$	60,786	$	65,000
Other		9,503		5,620
	$	70,289	$	70,620

Schedule Of Other Noncurrent Assets

	September 29, 2013		December 29, 2012
Deferred debt issuance costs	$	8,953	$	7,736
Other		8,199		6,750
	$	17,152	$	14,486

Appvion, Inc. [Member]

Schedule Of Other Noncurrent Assets

	September 29, 2013		December 29, 2012
Deferred debt issuance costs	$	8,953	$	7,736
Other		8,187		6,738
	$	17,140	$	14,474

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Restructuring And Other Related Costs (Components Of Restructuring Reserve) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 29, 2013
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	$ 19,219
Utilization	(829)
Reserve, Ending Balance	18,390
Exit Costs - Equipment Decommissioning [Member]
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	765
Utilization	(375)
Reserve, Ending Balance	390
Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	18,454
Utilization	(454)
Reserve, Ending Balance	$ 18,000

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Postretirement Benefit Plans Other Than Pensions

9 Months Ended

Sep. 29, 2013

Postretirement Benefit Plans Other Than Pensions

10.      POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS

The components of other postretirement benefit cost include the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
Other Postretirement Benefits	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net periodic benefit cost
Service cost	$	98	$	94	$	260	$	281
Interest cost		342		469		1,092		1,409
Amortization of prior service
credit		(519)		(650)		(1,557)		(1,950)
Net gain amortization		(1,889)		—		(1,889)		—
Curtailment gain		—		—		—		(3,726)
Net periodic benefit income	$	(1,968)	$	(87)	$	(2,094)	$	(3,986)

Appvion, Inc. [Member]

Postretirement Benefit Plans Other Than Pensions

10.      POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS

The components of other postretirement benefit cost include the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
Other Postretirement Benefits	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net periodic benefit cost
Service cost	$	98	$	94	$	260	$	281
Interest cost		342		469		1,092		1,409
Amortization of prior service
credit		(519)		(650)		(1,557)		(1,950)
Net gain amortization		(1,889)		—		(1,889)		—
Curtailment gain		—		—		—		(3,726)
Net periodic benefit income	$	(1,968)	$	(87)	$	(2,094)	$	(3,986)

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Other Current And Noncurrent Assets

9 Months Ended

Sep. 29, 2013

Other Current And Noncurrent Assets

6.       OTHER CURRENT AND NONCURRENT ASSETS

Other current assets consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Environmental indemnification receivable	$	60,786	$	65,000
Other		9,503		5,620
	$	70,289	$	70,620

The environmental indemnification receivables of $60.8 million and $65.0 million, noted above for the periods ended September 29, 2013 and December 29, 2012, respectively, represent an indemnification receivable from Arjo Wiggins Appleton Ltd, now known as Windward Prospects Ltd (“AWA”), as recorded on the Condensed Consolidated Balance Sheet of Paperweight Development Corp. and Subsidiaries and an indemnification receivable from PDC as recorded on the Condensed Consolidated Balance Sheet of Appvion, Inc. and Subsidiaries.

Other noncurrent assets for Paperweight Development Corp. and Subsidiaries consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Deferred debt issuance costs	$	8,953	$	7,736
Other		8,199		6,750
	$	17,152	$	14,486

Other noncurrent assets for Appvion, Inc. and Subsidiaries consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Deferred debt issuance costs	$	8,953	$	7,736
Other		8,187		6,738
	$	17,140	$	14,474

Appvion, Inc. [Member]

Other Current And Noncurrent Assets

6.       OTHER CURRENT AND NONCURRENT ASSETS

Other current assets consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Environmental indemnification receivable	$	60,786	$	65,000
Other		9,503		5,620
	$	70,289	$	70,620

The environmental indemnification receivables of $60.8 million and $65.0 million, noted above for the periods ended September 29, 2013 and December 29, 2012, respectively, represent an indemnification receivable from Arjo Wiggins Appleton Ltd, now known as Windward Prospects Ltd (“AWA”), as recorded on the Condensed Consolidated Balance Sheet of Paperweight Development Corp. and Subsidiaries and an indemnification receivable from PDC as recorded on the Condensed Consolidated Balance Sheet of Appvion, Inc. and Subsidiaries.

Other noncurrent assets for Paperweight Development Corp. and Subsidiaries consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Deferred debt issuance costs	$	8,953	$	7,736
Other		8,199		6,750
	$	17,152	$	14,486

Other noncurrent assets for Appvion, Inc. and Subsidiaries consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Deferred debt issuance costs	$	8,953	$	7,736
Other		8,187		6,738
	$	17,140	$	14,474

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Basis Of Presentation

9 Months Ended

Sep. 29, 2013

Basis Of Presentation

1.       BASIS OF PRESENTATION

In the opinion of management, all adjustments necessary for the fair statement of comprehensive income (loss) for the three and nine months ended September 29, 2013 and September 30, 2012, the cash flows for the nine months ended September 29, 2013 and September 30, 2012 and financial position at September 29, 2013 and December 29, 2012 have been made.

During third quarter 2013, the Company recorded an out-of-period adjustment related to the correction of a $1.5 million overstatement of accounts payable related to prior periods. As a result of this correction, $1.4 million was recorded as a decrease to cost of sales and the remaining $0.1 million was recorded as a decrease to selling, general and administrative (“SG&A”) expenses. The Company does not believe the correction of this error is material to its financial statements for any prior periods, to the quarter ended September 29, 2013 or its projected full year results for the year ended December 28, 2013.

These condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes of Paperweight Development Corp. (“PDC”) and its 100%-owned subsidiaries (collectively the “Company”), which includes the consolidated financial statements of Appvion, Inc., formally known as Appleton Papers Inc, and its 100%-owned subsidiaries (collectively “Appvion”) for each of the three years in the period ended December 29, 2012, which are included in the annual report on Form 10-K for the year ended December 29, 2012. The consolidated balance sheet data as of December 29, 2012, contained within these condensed financial statements, was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

During fourth quarter 2012, the Company adopted mark-to-market accounting for its pension and other postretirement benefit plans. Under mark-to-market accounting, all actuarial gains and losses are immediately recognized in net periodic cost annually in the fourth quarter of each year and whenever a plan is determined to qualify for a remeasurement during a fiscal year and, the market-related value of plan assets used in the cost calculations is equal to fair value. Under the Company’s previous accounting method, a portion of the actuarial gains and losses was deferred in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheet and amortized into future periods. In addition, the previous method smoothed the investment gains and losses of the plan assets over a period of five years. While the Company’s historical policy of recognizing pension and other postretirement benefits expense was considered acceptable under accounting principles generally accepted in the United States, the Company believes this new policy to be preferable as it eliminates the delay in recognizing actuarial gains and losses within operating results. This change will also improve the transparency within the Company’s operating results by immediately recognizing the effects of economic and interest rate trends on plan investments and assumptions in the year these actuarial gains and losses are actually incurred. All prior periods presented were retrospectively adjusted to reflect the period-specific effects of applying the new accounting policy.

In connection with this change in accounting policy for pension and other postretirement benefit plans, the Company also elected to change its method of accounting for certain costs included in inventory. The Company elected to exclude the amount of its pension and other postretirement benefit costs applicable to former employees from inventoriable costs. While the Company’s historical policy of including all pension and other postretirement benefits costs, excluding those charged directly to SG&A expenses, as a component of inventoriable costs was acceptable, it believes the new policy is preferable as inventoriable costs will only include costs that are directly attributable to current employees involved in the production of inventory. All prior periods presented were retrospectively adjusted to reflect the period-specific effects of applying the new accounting policy.

The effect of the accounting policy changes on the previously-reported results for the three and nine months ended September 30, 2012, was a $2.6million reduction in net loss and a $4.3 million reduction in net loss, respectively.

Appvion, Inc. [Member]

Basis Of Presentation

1.       BASIS OF PRESENTATION

In the opinion of management, all adjustments necessary for the fair statement of comprehensive income (loss) for the three and nine months ended September 29, 2013 and September 30, 2012, the cash flows for the nine months ended September 29, 2013 and September 30, 2012 and financial position at September 29, 2013 and December 29, 2012 have been made.

During third quarter 2013, the Company recorded an out-of-period adjustment related to the correction of a $1.5 million overstatement of accounts payable related to prior periods. As a result of this correction, $1.4 million was recorded as a decrease to cost of sales and the remaining $0.1 million was recorded as a decrease to selling, general and administrative (“SG&A”) expenses. The Company does not believe the correction of this error is material to its financial statements for any prior periods, to the quarter ended September 29, 2013 or its projected full year results for the year ended December 28, 2013.

These condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes of Paperweight Development Corp. (“PDC”) and its 100%-owned subsidiaries (collectively the “Company”), which includes the consolidated financial statements of Appvion, Inc., formally known as Appleton Papers Inc, and its 100%-owned subsidiaries (collectively “Appvion”) for each of the three years in the period ended December 29, 2012, which are included in the annual report on Form 10-K for the year ended December 29, 2012. The consolidated balance sheet data as of December 29, 2012, contained within these condensed financial statements, was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

During fourth quarter 2012, the Company adopted mark-to-market accounting for its pension and other postretirement benefit plans. Under mark-to-market accounting, all actuarial gains and losses are immediately recognized in net periodic cost annually in the fourth quarter of each year and whenever a plan is determined to qualify for a remeasurement during a fiscal year and, the market-related value of plan assets used in the cost calculations is equal to fair value. Under the Company’s previous accounting method, a portion of the actuarial gains and losses was deferred in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheet and amortized into future periods. In addition, the previous method smoothed the investment gains and losses of the plan assets over a period of five years. While the Company’s historical policy of recognizing pension and other postretirement benefits expense was considered acceptable under accounting principles generally accepted in the United States, the Company believes this new policy to be preferable as it eliminates the delay in recognizing actuarial gains and losses within operating results. This change will also improve the transparency within the Company’s operating results by immediately recognizing the effects of economic and interest rate trends on plan investments and assumptions in the year these actuarial gains and losses are actually incurred. All prior periods presented were retrospectively adjusted to reflect the period-specific effects of applying the new accounting policy.

In connection with this change in accounting policy for pension and other postretirement benefit plans, the Company also elected to change its method of accounting for certain costs included in inventory. The Company elected to exclude the amount of its pension and other postretirement benefit costs applicable to former employees from inventoriable costs. While the Company’s historical policy of including all pension and other postretirement benefits costs, excluding those charged directly to SG&A expenses, as a component of inventoriable costs was acceptable, it believes the new policy is preferable as inventoriable costs will only include costs that are directly attributable to current employees involved in the production of inventory. All prior periods presented were retrospectively adjusted to reflect the period-specific effects of applying the new accounting policy.

The effect of the accounting policy changes on the previously-reported results for the three and nine months ended September 30, 2012, was a $2.6million reduction in net loss and a $4.3 million reduction in net loss, respectively.

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Other Accrued Liabilities (Schedule Of Accrued Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Other Accrued Liabilities [Abstract]
Compensation	$ 6,807	$ 14,800
Trade discounts	12,921	16,796
Workers' compensation	8,325	4,875
Accrued insurance	1,799	1,896
Other accrued taxes	1,264	1,494
Postretirement benefits other than pension	3,248	3,248
Fox River Liabilities	60,786	65,000
Restructuring reserve	822	1,219
Other	6,178	10,307
Other accrued liabilities	$ 102,150	$ 119,635

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Property, Plant And Equipment (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	$ 887	$ 63,140
West Carrollton Mill [Member]
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	$ 900	$ 63,100

XML

Postretirement Benefit Plans Other Than Pensions (Tables) (Other Postretirement Benefits [Member])

9 Months Ended

Sep. 29, 2013

Other Postretirement Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Components Of Other Postretirement Benefit Cost

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
Other Postretirement Benefits	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net periodic benefit cost
Service cost	$	98	$	94	$	260	$	281
Interest cost		342		469		1,092		1,409
Amortization of prior service
credit		(519)		(650)		(1,557)		(1,950)
Net gain amortization		(1,889)		—		(1,889)		—
Curtailment gain		—		—		—		(3,726)
Net periodic benefit income	$	(1,968)	$	(87)	$	(2,094)	$	(3,986)

XML

Segment Information (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Jul. 01, 2012	Sep. 30, 2012
Segment Reporting Information [Line Items]
Transaction costs for discontinued business combination	$ 300,000		$ 7,200,000
Restructuring charges	703,000		27,175,000
Accelerated depreciation	887,000		63,140,000
Environmental Costs Recognized, Recovery Credited to Expense	(2,188,000)		(2,188,000)
West Carrollton Mill [Member]
Segment Reporting Information [Line Items]
Restructuring charges	1,600,000	1,600,000	102,000,000
Accelerated depreciation	900,000		63,100,000
Carbonless Paper [Member]
Segment Reporting Information [Line Items]
Accelerated depreciation	500,000
Carbonless Paper [Member] | West Carrollton Mill [Member]
Segment Reporting Information [Line Items]
Restructuring charges	900,000		56,100,000
Accelerated depreciation	500,000		34,700,000
Thermal Papers [Member]
Segment Reporting Information [Line Items]
Litigation settlement, net	6,800,000
Restructuring charges	700,000		45,900,000
Accelerated depreciation	400,000
Thermal Papers [Member] | West Carrollton Mill [Member]
Segment Reporting Information [Line Items]
Restructuring charges	700,000		45,900,000
Accelerated depreciation	$ 400,000		$ 28,400,000

XML

Employee Stock Ownership Plan (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Employee Stock Ownership Plan [Abstract]
Contributions charged to expense	$ 0.6	$ 0.5	$ 2.0	$ 2.3
Redeemable common stock repurchased, shares			606,841	527,492
Redeemable common stock repurchased, value			10.7	8.6
ESOP shares matched by Company			81,592	121,255
ESOP shares purchased with pre-tax dollars			94,067	111,151
Pre-tax deferals, rollovers and loan payment made by employees for ESOP			1.6	1.7
Ultimate redemption liability	148	151	148	151
Recorded book value of redeemable common stock	71	86	71	86
Accretion of redeemable common stock			$ (3.2)	$ (7.0)
Share Price	$ 17.85		$ 17.85

XML

Employee Stock Ownership Plan

9 Months Ended

Sep. 29, 2013

Employee Stock Ownership Plan

13.      EMPLOYEE STOCK OWNERSHIP PLAN

The Company’s matching contributions charged to expense were $0.6 million and $0.5 million for the three-month periods ended September 29, 2013 and September 30, 2012, respectively. The Company’s matching contributions charged to expense were $2.0 million and $2.3 million for the nine-month periods ended September 29, 2013 and September 30, 2012, respectively.  As a result of hardship withdrawals, required diversifications and employee terminations,  606,841 shares of PDC redeemable common stock were repurchased during the first nine months of 2013 at an aggregate price of approximately $10.7million. During the same period, the ESOP trustee purchased 94,067 shares of PDC redeemable common stock for an aggregate price of $1.6 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for this same period resulted in an additional 81,592shares of redeemable common stock being issued. As a result of hardship withdrawals, required diversifications and employee terminations, 527,492 shares of PDC redeemable common stock were repurchased during the first nine months of 2012 at an aggregate price of approximately $8.6 million. During the same period, the ESOP trustee purchased 111,151 shares of PDC redeemable common stock for an aggregate price of $1.7 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for this same period resulted in an additional 121,255 shares of redeemable common stock being issued.

In accordance with ASC 480, “Distinguishing Liabilities from Equity,” redeemable equity securities are required to be accreted so the amount in the balance sheet reflects the estimated amount redeemable at the earliest redemption date based upon the redemption value at each period-end. Redeemable common stock is being accreted to the earliest redemption date, mandated by federal law, based upon the estimated fair market value of the redeemable common stock as of September 29, 2013. As of this date, the fair market value of one share of PDC common stock was $17.85.  For several semi-annual periods prior to year-end 2010, stock valuations resulted in decreases to the stock price. The impact of these reductions caused the Company to reduce redeemable common stock accretion by $3.2 million for the nine months ended September 29, 2013. Based upon the estimated fair value of the redeemable common stock, an ultimate redemption liability of approximately $148 million has been determined. The redeemable common stock recorded book value as of September 29, 2013,  was $71 million.

Similarly, redeemable common stock accretion was reduced by $7.0 million for the nine months ended September 30, 2012. Based upon the estimated fair value of the redeemable common stock, an ultimate redemption liability of approximately $151 million was determined. The recorded book value of the redeemable common stock as of September 29, 2012 was $86 million.

Appvion, Inc. [Member]

Employee Stock Ownership Plan

13.      EMPLOYEE STOCK OWNERSHIP PLAN

The Company’s matching contributions charged to expense were $0.6 million and $0.5 million for the three-month periods ended September 29, 2013 and September 30, 2012, respectively. The Company’s matching contributions charged to expense were $2.0 million and $2.3 million for the nine-month periods ended September 29, 2013 and September 30, 2012, respectively.  As a result of hardship withdrawals, required diversifications and employee terminations,  606,841 shares of PDC redeemable common stock were repurchased during the first nine months of 2013 at an aggregate price of approximately $10.7million. During the same period, the ESOP trustee purchased 94,067 shares of PDC redeemable common stock for an aggregate price of $1.6 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for this same period resulted in an additional 81,592shares of redeemable common stock being issued. As a result of hardship withdrawals, required diversifications and employee terminations, 527,492 shares of PDC redeemable common stock were repurchased during the first nine months of 2012 at an aggregate price of approximately $8.6 million. During the same period, the ESOP trustee purchased 111,151 shares of PDC redeemable common stock for an aggregate price of $1.7 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for this same period resulted in an additional 121,255 shares of redeemable common stock being issued.

In accordance with ASC 480, “Distinguishing Liabilities from Equity,” redeemable equity securities are required to be accreted so the amount in the balance sheet reflects the estimated amount redeemable at the earliest redemption date based upon the redemption value at each period-end. Redeemable common stock is being accreted to the earliest redemption date, mandated by federal law, based upon the estimated fair market value of the redeemable common stock as of September 29, 2013. As of this date, the fair market value of one share of PDC common stock was $17.85.  For several semi-annual periods prior to year-end 2010, stock valuations resulted in decreases to the stock price. The impact of these reductions caused the Company to reduce redeemable common stock accretion by $3.2 million for the nine months ended September 29, 2013. Based upon the estimated fair value of the redeemable common stock, an ultimate redemption liability of approximately $148 million has been determined. The redeemable common stock recorded book value as of September 29, 2013,  was $71 million.

Similarly, redeemable common stock accretion was reduced by $7.0 million for the nine months ended September 30, 2012. Based upon the estimated fair value of the redeemable common stock, an ultimate redemption liability of approximately $151 million was determined. The recorded book value of the redeemable common stock as of September 29, 2012 was $86 million.

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Employee Benefits

9 Months Ended

Sep. 29, 2013

Employee Benefits

9.      EMPLOYEE BENEFITS

The components of net periodic pension cost associated with the defined benefit pension plans include the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
Pension Benefits	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net periodic benefit cost
Service cost	$	1,268	$	977	$	3,868	$	2,931
Interest cost		4,638		4,867		13,878		14,601
Expected return on plan assets		(6,038)		(5,443)		(18,102)		(16,329)
Amortization of prior service cost		122		122		365		366
Net loss amortization		748		—		748		—
Net periodic benefit cost	$	738	$	523	$	757	$	1,569

The Company planned to contribute $12.5 million to its defined benefit pension plan in 2013. The Company contributed the entire $12.5 million to the plan during the first nine months of 2013.

Certain of the Company’s hourly employees participated in a multi-employer defined benefit plan, the Pace Industry Union-Management Pension Plan (EIN #11-6166763). Participants in this plan included the West Carrollton, Ohio represented manufacturing employees, where the collective bargaining agreement expired April 1, 2012, as well as the represented employees at the Kansas City, Kansas distribution center, where the collective bargaining agreement expired December 31, 2011. As a result of labor contracts ratified in June 2012 and September 2012, by the bargaining employees in Kansas City and West Carrollton, respectively, both groups elected to end their participation in this multi-employer plan and instead participate in the defined benefit pension plan sponsored by the Company. This resulted in a full withdrawal from the multi-employer plan, for which, the Company recorded a $7.0 million expense in third quarter 2012 representing its estimated cost to satisfy its complete withdrawal liability under the terms of the plan’s trust agreement. This was in addition to the $18.0 million partial withdrawal liability recorded during first quarter 2012 due to the workforce reduction at the West Carrollton, Ohio plant resulting from the cessation of papermaking activities. The estimated obligation for the complete withdrawal liability was derived from available information, including but not limited to collective bargaining agreements, plan trust agreements, participation agreements, ERISA statutes, regulations and rulings, discussions with the plan trustee and discussions with legal counsel. Therefore, the Company has recorded a $25 million liability as its best estimate of the amount to satisfy the withdrawal liability, with a payment period extending up to 20 years, discounted in accordance with ASC Section 450-20-S99-1.

Appvion, Inc. [Member]

Employee Benefits

9.      EMPLOYEE BENEFITS

The components of net periodic pension cost associated with the defined benefit pension plans include the following (dollars in thousands):

	For the Three		For the Three		For the Nine		For the Nine
	Months Ended		Months Ended		Months Ended		Months Ended
Pension Benefits	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Net periodic benefit cost
Service cost	$	1,268	$	977	$	3,868	$	2,931
Interest cost		4,638		4,867		13,878		14,601
Expected return on plan assets		(6,038)		(5,443)		(18,102)		(16,329)
Amortization of prior service cost		122		122		365		366
Net loss amortization		748		—		748		—
Net periodic benefit cost	$	738	$	523	$	757	$	1,569

The Company planned to contribute $12.5 million to its defined benefit pension plan in 2013. The Company contributed the entire $12.5 million to the plan during the first nine months of 2013.

Certain of the Company’s hourly employees participated in a multi-employer defined benefit plan, the Pace Industry Union-Management Pension Plan (EIN #11-6166763). Participants in this plan included the West Carrollton, Ohio represented manufacturing employees, where the collective bargaining agreement expired April 1, 2012, as well as the represented employees at the Kansas City, Kansas distribution center, where the collective bargaining agreement expired December 31, 2011. As a result of labor contracts ratified in June 2012 and September 2012, by the bargaining employees in Kansas City and West Carrollton, respectively, both groups elected to end their participation in this multi-employer plan and instead participate in the defined benefit pension plan sponsored by the Company. This resulted in a full withdrawal from the multi-employer plan, for which, the Company recorded a $7.0 million expense in third quarter 2012 representing its estimated cost to satisfy its complete withdrawal liability under the terms of the plan’s trust agreement. This was in addition to the $18.0 million partial withdrawal liability recorded during first quarter 2012 due to the workforce reduction at the West Carrollton, Ohio plant resulting from the cessation of papermaking activities. The estimated obligation for the complete withdrawal liability was derived from available information, including but not limited to collective bargaining agreements, plan trust agreements, participation agreements, ERISA statutes, regulations and rulings, discussions with the plan trustee and discussions with legal counsel. Therefore, the Company has recorded a $25 million liability as its best estimate of the amount to satisfy the withdrawal liability, with a payment period extending up to 20 years, discounted in accordance with ASC Section 450-20-S99-1.

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Accumulated Other Comprehensive Income (Schedule Of Changes In Accumulated Other Comprehensive Income By Component) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2013	Sep. 30, 2012	Sep. 29, 2013	Sep. 30, 2012
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income, Beginning balance			$ 5,322	$ 13,024
Other comprehensive income before reclassifications			(1,390)	(295)
Amounts reclassified from accumulated other comprehensive income (loss)			(371)	(7,307)
Net other comprehensive (loss) income	(1,978)	(2,051)	(1,761)	(7,602)
Accumulated other comprehensive income, Ending balance	3,561	5,422	3,561	5,422
Change In Retiree Plans [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income, Beginning balance			6,453	11,265
Amounts reclassified from accumulated other comprehensive income (loss)			(1,192)	(5,310)
Net other comprehensive (loss) income			(1,192)	(5,310)
Accumulated other comprehensive income, Ending balance	5,261	5,955	5,261	5,955
Hedging Activities [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income, Beginning balance			(1,131)	1,759
Other comprehensive income before reclassifications			(1,390)	(295)
Amounts reclassified from accumulated other comprehensive income (loss)			821	(1,997)
Net other comprehensive (loss) income			(569)	(2,292)
Accumulated other comprehensive income, Ending balance	$ (1,700)	$ (533)	$ (1,700)	$ (533)

XML

Fair Value Measurements

9 Months Ended

Sep. 29, 2013

Fair Value Measurements

16.      FAIR VALUE MEASUREMENTS

The carrying amount (including current portions) and estimated fair value of certain of the Company’s recorded financial instruments are as follows (dollars in thousands):

	September 29, 2013				December 29, 2012
	Carrying		Fair		Carrying		Fair
Financial Instruments	Amount		Value		Amount		Value
Senior subordinated notes payable	$	32,195	$	32,155	$	32,195	$	32,356
Senior secured first lien notes payable		—		—		301,776		319,883
Second lien notes payable		161,766		182,796		161,766		175,516
First lien term loan		331,776		331,776		—		—
Revolving credit facility		20,000		20,000		3,700		3,700
State of Ohio loans		6,225		6,225		7,212		7,212
Columbia County, Wisconsin municipal debt		300		300		300		300
Industrial development bonds		6,000		6,000		8,650		8,650
	$	558,262	$	579,252	$	515,599	$	547,617

The senior subordinated notes payable and the second lien notes payable are traded regularly in public markets and therefore, the fair value was determined using Level 1 inputs based on quoted market prices. The first lien term loan is traded regularly in public markets and therefore, the fair value was determined using Level 1 inputs based on quoted market prices. The fair value of the State of Ohio loans was determined using Level 2 observable market inputs including current rates for financial instruments of the same remaining maturity and similar terms. The industrial development bonds have a variable interest rate that reflects current market terms and conditions.

Due to their short-term nature, the carrying values of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of fair value as of September 29, 2013 and December 29, 2012.

Appvion, Inc. [Member]

Fair Value Measurements

16.      FAIR VALUE MEASUREMENTS

The carrying amount (including current portions) and estimated fair value of certain of the Company’s recorded financial instruments are as follows (dollars in thousands):

	September 29, 2013				December 29, 2012
	Carrying		Fair		Carrying		Fair
Financial Instruments	Amount		Value		Amount		Value
Senior subordinated notes payable	$	32,195	$	32,155	$	32,195	$	32,356
Senior secured first lien notes payable		—		—		301,776		319,883
Second lien notes payable		161,766		182,796		161,766		175,516
First lien term loan		331,776		331,776		—		—
Revolving credit facility		20,000		20,000		3,700		3,700
State of Ohio loans		6,225		6,225		7,212		7,212
Columbia County, Wisconsin municipal debt		300		300		300		300
Industrial development bonds		6,000		6,000		8,650		8,650
	$	558,262	$	579,252	$	515,599	$	547,617

The senior subordinated notes payable and the second lien notes payable are traded regularly in public markets and therefore, the fair value was determined using Level 1 inputs based on quoted market prices. The first lien term loan is traded regularly in public markets and therefore, the fair value was determined using Level 1 inputs based on quoted market prices. The fair value of the State of Ohio loans was determined using Level 2 observable market inputs including current rates for financial instruments of the same remaining maturity and similar terms. The industrial development bonds have a variable interest rate that reflects current market terms and conditions.

Due to their short-term nature, the carrying values of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of fair value as of September 29, 2013 and December 29, 2012.

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Derivative Instruments And Hedging Activities

9 Months Ended

Sep. 29, 2013

Derivative Instruments And Hedging Activities

14.      DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company selectively uses financial instruments to manage some market risks from changes in foreign currency exchange rates, commodity prices or interest rates. The fair values of all derivatives are recorded in the Condensed Consolidated Balance Sheets. The change in a derivative’s fair value is recorded each period in current earnings or accumulated other comprehensive income, depending on whether the derivative is designated and qualifies as part of a hedge transaction and, if so, the type of hedge transaction.

The Company selectively hedges forecasted transactions that are subject to foreign currency exchange exposure by using forward exchange contracts. These instruments are designated as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs. The fair value of foreign currency forward contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward note, also deemed to be categorized as Level 2. The effective portion of the contracts’ gains or losses due to changes in fair value is initially recorded as a component of accumulated other comprehensive income and is subsequently reclassified into earnings when the underlying transactions occur and affect earnings or if it becomes probable the forecasted transactions will not occur. These contracts are highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates. The notional amount of foreign exchange contracts used to hedge foreign currency transactions was $17.3 million as of September 29, 2013. These contracts have settlement dates extending through June 2014.

The Company selectively hedges forecasted commodity transactions that are subject to pricing fluctuations by using collar contracts to manage risks associated with market fluctuations in energy prices. These contracts are recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs based on the New York Mercantile Exchange as measured on the last trading day of the accounting period and compared to the collar price. The contracts’ gains or losses due to changes in fair value are recorded in current period earnings. At September 29, 2013, the hedged volumes of these contracts totaled 1,798,255 MMBTU (Million British Thermal Units) of natural gas. The contracts have settlement dates extending through December 2014.

The Company selectively hedges forecasted commodity transactions that are subject to pricing fluctuations by using swap contracts to manage risks associated with market fluctuations in pulp prices. During first quarter 2012, there were two pulp swap contracts in place. The first swap had a hedge volume of 2,000 tons of pulp and was settled in February 2012. It was not designated as a hedge, and therefore, gains or losses due to changes in fair value were recorded in current period earnings. The second pulp hedge was designated as a cash flow hedge of forecasted pulp purchases, and therefore, the change in the effective portion of the fair value of the hedge was deferred in accumulated other comprehensive income until the inventory containing the pulp was sold. This pulp hedge was settled as of September 30, 2012. As of September 29, 2013, there were no pulp swap contracts in place.

In July 2013, Appvion fixed the interest rate, at 7.24%, on $100 million of its variable rate first lien term loan using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. This interest rate swap has been designated as a cash flow hedge and is recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs.

The following table presents the location and fair values of derivative instruments included in the Company’s Condensed Consolidated Balance Sheets (dollars in thousands):

Designated as a Hedge	Balance Sheet Location	September 29, 2013		December 29, 2012
Foreign currency exchange derivatives	Other current liabilities	$	(510)	$	(1,014)
Interest Rate Swap	Other long-term liabilities		(1,334)		—
Not Designated as a Hedge
Natural gas collar	Other current assets		65		—
Natural gas collar	Other current liabilities		—		(43)

The following table presents the location and amount of losses (gains) on derivative instruments and related hedge items included in the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 29, 2013 and September 30, 2012 and losses (gains) initially recognized in accumulated other comprehensive income in the Condensed Consolidated Balance Sheets at the period-ends presented (dollars in thousands):

	Statement of	For the Three		For the Three		For the Nine		For the Nine
	Comprehensive	Months Ended		Months Ended		Months Ended		Months Ended
	Income (Loss)	September 29,		September 30,		September 29,		September 30,
Designated as a Hedge	Location	2013		2012		2013		2012
Foreign currency exchange derivatives	Net sales	$	333	$	(1,070)	$	624	$	(2,653)
Losses (gains) recognized in
accumulated other
comprehensive income							365		(190)
Pulp fixed swap	Cost of sales		—		262		197		656
Pulp fixed swap	Other expense		—		94		—		166
Losses recognized in accumulated
other comprehensive income							—		722
Interest rate swap
Losses recognized in accumulated
other comprehensive income							1,334		—
Not Designated as a Hedge
Natural gas collar/fixed swap	Cost of sales		(87)		(29)		(107)		239
Pulp fixed swap	Cost of sales		—		—		—		10

For a discussion of the fair value of financial instruments, see Note 16, Fair Value Measurements.

Appvion, Inc. [Member]

Derivative Instruments And Hedging Activities

14.      DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company selectively uses financial instruments to manage some market risks from changes in foreign currency exchange rates, commodity prices or interest rates. The fair values of all derivatives are recorded in the Condensed Consolidated Balance Sheets. The change in a derivative’s fair value is recorded each period in current earnings or accumulated other comprehensive income, depending on whether the derivative is designated and qualifies as part of a hedge transaction and, if so, the type of hedge transaction.

The Company selectively hedges forecasted transactions that are subject to foreign currency exchange exposure by using forward exchange contracts. These instruments are designated as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs. The fair value of foreign currency forward contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward note, also deemed to be categorized as Level 2. The effective portion of the contracts’ gains or losses due to changes in fair value is initially recorded as a component of accumulated other comprehensive income and is subsequently reclassified into earnings when the underlying transactions occur and affect earnings or if it becomes probable the forecasted transactions will not occur. These contracts are highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates. The notional amount of foreign exchange contracts used to hedge foreign currency transactions was $17.3 million as of September 29, 2013. These contracts have settlement dates extending through June 2014.

The Company selectively hedges forecasted commodity transactions that are subject to pricing fluctuations by using collar contracts to manage risks associated with market fluctuations in energy prices. These contracts are recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs based on the New York Mercantile Exchange as measured on the last trading day of the accounting period and compared to the collar price. The contracts’ gains or losses due to changes in fair value are recorded in current period earnings. At September 29, 2013, the hedged volumes of these contracts totaled 1,798,255 MMBTU (Million British Thermal Units) of natural gas. The contracts have settlement dates extending through December 2014.

The Company selectively hedges forecasted commodity transactions that are subject to pricing fluctuations by using swap contracts to manage risks associated with market fluctuations in pulp prices. During first quarter 2012, there were two pulp swap contracts in place. The first swap had a hedge volume of 2,000 tons of pulp and was settled in February 2012. It was not designated as a hedge, and therefore, gains or losses due to changes in fair value were recorded in current period earnings. The second pulp hedge was designated as a cash flow hedge of forecasted pulp purchases, and therefore, the change in the effective portion of the fair value of the hedge was deferred in accumulated other comprehensive income until the inventory containing the pulp was sold. This pulp hedge was settled as of September 30, 2012. As of September 29, 2013, there were no pulp swap contracts in place.

In July 2013, Appvion fixed the interest rate, at 7.24%, on $100 million of its variable rate first lien term loan using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. This interest rate swap has been designated as a cash flow hedge and is recorded in the Condensed Consolidated Balance Sheet at fair value using Level 2 observable market inputs.

The following table presents the location and fair values of derivative instruments included in the Company’s Condensed Consolidated Balance Sheets (dollars in thousands):

Designated as a Hedge	Balance Sheet Location	September 29, 2013		December 29, 2012
Foreign currency exchange derivatives	Other current liabilities	$	(510)	$	(1,014)
Interest Rate Swap	Other long-term liabilities		(1,334)		—
Not Designated as a Hedge
Natural gas collar	Other current assets		65		—
Natural gas collar	Other current liabilities		—		(43)

The following table presents the location and amount of losses (gains) on derivative instruments and related hedge items included in the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 29, 2013 and September 30, 2012 and losses (gains) initially recognized in accumulated other comprehensive income in the Condensed Consolidated Balance Sheets at the period-ends presented (dollars in thousands):

	Statement of	For the Three		For the Three		For the Nine		For the Nine
	Comprehensive	Months Ended		Months Ended		Months Ended		Months Ended
	Income (Loss)	September 29,		September 30,		September 29,		September 30,
Designated as a Hedge	Location	2013		2012		2013		2012
Foreign currency exchange derivatives	Net sales	$	333	$	(1,070)	$	624	$	(2,653)
Losses (gains) recognized in
accumulated other
comprehensive income							365		(190)
Pulp fixed swap	Cost of sales		—		262		197		656
Pulp fixed swap	Other expense		—		94		—		166
Losses recognized in accumulated
other comprehensive income							—		722
Interest rate swap
Losses recognized in accumulated
other comprehensive income							1,334		—
Not Designated as a Hedge
Natural gas collar/fixed swap	Cost of sales		(87)		(29)		(107)		239
Pulp fixed swap	Cost of sales		—		—		—		10

For a discussion of the fair value of financial instruments, see Note 16, Fair Value Measurements.

XML

Document And Entity Information	9 Months Ended
	Sep. 29, 2013	Nov. 01, 2013 Appvion, Inc. [Member]	Nov. 01, 2013 Paperweight Development Corp. [Member]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 29, 2013
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013
Entity Registrant Name	PAPERWEIGHT DEVELOPMENT CORP
Entity Central Index Key	0001166365
Current Fiscal Year End Date	--12-28
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		100	8,291,671

XML

Long-Term Obligations

9 Months Ended

Sep. 29, 2013

Long-Term Obligations

15.      LONG-TERM OBLIGATIONS

Long-term obligations, excluding capital lease obligations, consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Old revolving credit facility at approximately 4.25%	$	—	$	3,700
New revolving credit facility at approximately 4.75%		20,000		—
Secured variable rate industrial development bonds, 0.3% average interest rate at
September 29, 2013,  $2,650 due and repaid in August 2013 and $6,000 due in 2027		6,000		8,650
State of Ohio assistance loan at 6%, approximately $100 due monthly and final
payment due May 2017		4,440		5,210
State of Ohio loan at 3%, approximately $30 due monthly and final
payment due May 2019		1,785		2,002
Columbia County, Wisconsin municipal debt due December 2019		300		300
Senior subordinated notes payable at 9.75%, due June 2014		32,195		32,195
Senior secured first lien notes payable at 10.5%, due June 2015		—		305,000
Unamortized discount on 10.5% senior secured first lien notes payable, due June 2015		—		(3,224)
Second lien notes payable at 11.25%, due December 2015		161,766		161,766
First lien term loan at 5.75%, due June 2019		335,000		—
Unamortized discount on first lien term loan, due June 2019		(3,224)		—
		558,262		515,599
Less obligations due within one year		(50,070)		(3,975)
	$	508,192	$	511,624

On August 1, 2013, the Company made a mandatory debt repayment of $2.7 million, plus interest, on a portion of its Industrial Development Bonds.

On June 28, 2013, Appvion completed a voluntary refinancing of a portion of its debt to extend debt maturities, reduce interest costs and increase financial flexibility and liquidity options. The refinancing included the execution of a new credit agreement providing for a $100 million five-year revolving line of credit due June 2018 and a $335 million first lien term loan due June 2019. The new line of credit replaced the five-year, $100 million revolving credit facility due February 2015. The new revolving credit facility provides for up to $100 million of revolving loans including a letter of credit sub-facility of up to $25 million and a swing line sub-facility of up to $5 million. Appvion’s borrowings under the revolving credit facility bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR plus 4.5%, per annum.

Proceeds from the $335 million first lien term loan, less expenses and discounts, were $326.3 million. These proceeds were used to redeem $300.7 million of the 10.5% senior secured first lien notes due June 2015, pay $1.1 million of interest due on the notes, pay $18.1 million of note premiums and costs associated with the note redemption, repay $6.0 million of the old revolver and pay $0.4 million of interest and fees due on the old revolver. The $18.1 million is included in debt extinguishment expense on the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 29, 2013. In addition, there was a cash outlay of $7.2 million for debt acquisition costs. As a result of the refinancing, $6.7 million of unamortized deferred debt issuance costs and original issue discount associated with the redeemed senior secured first lien notes and old revolver were written off and included in debt extinguishment expense.

The first lien term loan bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR, but not less than 1.25%, plus 4.5%, per annum. On July 30, 2013, Appvion fixed the interest rate at 7.24%, on $100.0 million of this variable rate debt using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. The term loan amortizes in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount, with the balance payable on June 28, 2019. Also, within five business days after the year-end financial statements have been filed, Appvion shall prepay an aggregate principal amount of the term loan equal to the excess, if any, of (a) 50% of defined excess cash flow, provided that such percentage shall be reduced to (1) 25% based upon Appvion achieving a consolidated leverage ratio of less than 3.50 to 1.0 but greater than or equal to 2.50 to 1.0 and (2) 0% based upon Appvion achieving a consolidated leverage ratio of less than 2.50 to 1.0 minus (b) the aggregate amount of all prepayments of the revolving credit line which constitute permanent reductions of the revolving credit facility and all optional prepayments of the first lien term loan made during the year.

On July 31, 2013, Appvion redeemed the remaining $4.3 million of 10.5% senior secured first lien notes due June 2015, plus interest and $0.2 million of debt extinguishment expense. In addition, $0.1 million of unamortized deferred debt issuance costs and original issue discount were written off and included in debt extinguishment expense.

The new credit agreement ranks senior in right of payment to all existing and future subordinated indebtedness of Appvion and is secured by security interests in substantially all of the property and assets of Appvion and the debt guarantors. As noted above, the maturity date of the revolving credit facility is June 28, 2018 and the maturity date of the first lien term loan is June 28, 2019. If any amount of the second lien notes remains outstanding on June 30, 2015, then the maturity date of the revolving credit facility shall automatically be deemed to be June 30, 2015 and if any amount of the second lien notes remains outstanding on September 15, 2015, the maturity date of the first lien term loan shall automatically be deemed to be September 15, 2015. The new credit agreement is unconditionally, and jointly and severally, guaranteed by PDC and Appvion Canada, Ltd. It contains affirmative and negative covenants customary for similar credit facilities, which among other things, require Appvion to meet a minimum fixed charge coverage ratio under certain circumstances and restricts Appvion’s ability and the ability of Appvion’s subsidiaries, subject to certain exceptions, to incur additional indebtedness and liens, engage in sale and leaseback transactions, make investments, make loans and advances, transact certain asset sales, engage in mergers, acquisitions, consolidations, liquidations and dissolutions, pay dividends or make other payments in respect of equity interests and other restricted payments, engage in certain transactions with affiliates, limit capital expenditures and make prepayments, redemptions and repurchases of other indebtedness.

During the first nine months of 2013, the Company made mandatory debt repayments of $1.0 million, plus interest, on its State of Ohio loans. Prior to the refinancing, Appvion had borrowed an additional $36.9 million,net, from the old revolving credit facility. This was repaid in full with $6.0 million of proceeds from the $335 million first lien term loan and $34.6 million of borrowing from the new revolving credit facility. Year-to-date through September 29, 2013, the Company borrowed $129.1 million and repaid $109.1 million on its new revolving credit facility, leaving an outstanding balance at quarter-end of $20.0 million. In addition, approximately $12.9 million of the new revolving credit facility was used to support outstanding letters of credit.

During March 2012, the Company received the proceeds of a $0.3 million note issued to Appvion., Inc. by Columbia County, Wisconsin.

The second lien notes, as amended, contain covenants that restrict Appvion’s ability and the ability of Appvion’s other guarantors to sell assets or merge or consolidate with or into other companies; borrow money; incur liens; pay dividends or make other distributions; make other restricted payments and investments; place restrictions on the ability of certain subsidiaries to pay dividends or other payments to Appvion; enter into sale and leaseback transactions; amend particular agreements relating to the transaction with former parent AWA and the ESOP; and enter into transactions with certain affiliates. These covenants are subject to important exceptions and qualifications set forth in the indenture governing the 11.25% second lien notes due 2015, as amended.

The senior subordinated notes, as amended, are unconditionally guaranteed by PDC and Rose Holdings Limited, subject to certain limitations.

The Company was in compliance with all debt covenants at September 29, 2013, and is forecasted to remain compliant for the next 12 months. The Company’s ability to comply with the financial covenants in the future depends on achieving forecasted operating results and operating cash flows. The Company’s failure to comply with its covenants, or an assessment that it is likely to fail to comply with its covenants, could lead the Company to seek amendments to, or waivers of, the financial covenants. The Company cannot provide assurance that it would be able to obtain any amendments to or waivers of the covenants. In the event of noncompliance with debt covenants, if the lenders will not amend or waive the covenants, the debt would be due and the Company would need to seek alternative financing. The Company cannot provide assurance that it would be able to obtain alternative financing. If the Company were not able to secure alternative financing, this would have a material adverse impact on the Company.

Appvion, Inc. [Member]

Long-Term Obligations

15.      LONG-TERM OBLIGATIONS

Long-term obligations, excluding capital lease obligations, consist of the following (dollars in thousands):

	September 29, 2013		December 29, 2012
Old revolving credit facility at approximately 4.25%	$	—	$	3,700
New revolving credit facility at approximately 4.75%		20,000		—
Secured variable rate industrial development bonds, 0.3% average interest rate at
September 29, 2013,  $2,650 due and repaid in August 2013 and $6,000 due in 2027		6,000		8,650
State of Ohio assistance loan at 6%, approximately $100 due monthly and final
payment due May 2017		4,440		5,210
State of Ohio loan at 3%, approximately $30 due monthly and final
payment due May 2019		1,785		2,002
Columbia County, Wisconsin municipal debt due December 2019		300		300
Senior subordinated notes payable at 9.75%, due June 2014		32,195		32,195
Senior secured first lien notes payable at 10.5%, due June 2015		—		305,000
Unamortized discount on 10.5% senior secured first lien notes payable, due June 2015		—		(3,224)
Second lien notes payable at 11.25%, due December 2015		161,766		161,766
First lien term loan at 5.75%, due June 2019		335,000		—
Unamortized discount on first lien term loan, due June 2019		(3,224)		—
		558,262		515,599
Less obligations due within one year		(50,070)		(3,975)
	$	508,192	$	511,624

On August 1, 2013, the Company made a mandatory debt repayment of $2.7 million, plus interest, on a portion of its Industrial Development Bonds.

On June 28, 2013, Appvion completed a voluntary refinancing of a portion of its debt to extend debt maturities, reduce interest costs and increase financial flexibility and liquidity options. The refinancing included the execution of a new credit agreement providing for a $100 million five-year revolving line of credit due June 2018 and a $335 million first lien term loan due June 2019. The new line of credit replaced the five-year, $100 million revolving credit facility due February 2015. The new revolving credit facility provides for up to $100 million of revolving loans including a letter of credit sub-facility of up to $25 million and a swing line sub-facility of up to $5 million. Appvion’s borrowings under the revolving credit facility bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR plus 4.5%, per annum.

Proceeds from the $335 million first lien term loan, less expenses and discounts, were $326.3 million. These proceeds were used to redeem $300.7 million of the 10.5% senior secured first lien notes due June 2015, pay $1.1 million of interest due on the notes, pay $18.1 million of note premiums and costs associated with the note redemption, repay $6.0 million of the old revolver and pay $0.4 million of interest and fees due on the old revolver. The $18.1 million is included in debt extinguishment expense on the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 29, 2013. In addition, there was a cash outlay of $7.2 million for debt acquisition costs. As a result of the refinancing, $6.7 million of unamortized deferred debt issuance costs and original issue discount associated with the redeemed senior secured first lien notes and old revolver were written off and included in debt extinguishment expense.

The first lien term loan bears interest at Appvion’s option at either base rate plus 3.5% or LIBOR, but not less than 1.25%, plus 4.5%, per annum. On July 30, 2013, Appvion fixed the interest rate at 7.24%, on $100.0 million of this variable rate debt using an interest rate swap contract with a forward start date of September 14, 2014 and a maturity date of June 28, 2019. The term loan amortizes in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount, with the balance payable on June 28, 2019. Also, within five business days after the year-end financial statements have been filed, Appvion shall prepay an aggregate principal amount of the term loan equal to the excess, if any, of (a) 50% of defined excess cash flow, provided that such percentage shall be reduced to (1) 25% based upon Appvion achieving a consolidated leverage ratio of less than 3.50 to 1.0 but greater than or equal to 2.50 to 1.0 and (2) 0% based upon Appvion achieving a consolidated leverage ratio of less than 2.50 to 1.0 minus (b) the aggregate amount of all prepayments of the revolving credit line which constitute permanent reductions of the revolving credit facility and all optional prepayments of the first lien term loan made during the year.

On July 31, 2013, Appvion redeemed the remaining $4.3 million of 10.5% senior secured first lien notes due June 2015, plus interest and $0.2 million of debt extinguishment expense. In addition, $0.1 million of unamortized deferred debt issuance costs and original issue discount were written off and included in debt extinguishment expense.

The new credit agreement ranks senior in right of payment to all existing and future subordinated indebtedness of Appvion and is secured by security interests in substantially all of the property and assets of Appvion and the debt guarantors. As noted above, the maturity date of the revolving credit facility is June 28, 2018 and the maturity date of the first lien term loan is June 28, 2019. If any amount of the second lien notes remains outstanding on June 30, 2015, then the maturity date of the revolving credit facility shall automatically be deemed to be June 30, 2015 and if any amount of the second lien notes remains outstanding on September 15, 2015, the maturity date of the first lien term loan shall automatically be deemed to be September 15, 2015. The new credit agreement is unconditionally, and jointly and severally, guaranteed by PDC and Appvion Canada, Ltd. It contains affirmative and negative covenants customary for similar credit facilities, which among other things, require Appvion to meet a minimum fixed charge coverage ratio under certain circumstances and restricts Appvion’s ability and the ability of Appvion’s subsidiaries, subject to certain exceptions, to incur additional indebtedness and liens, engage in sale and leaseback transactions, make investments, make loans and advances, transact certain asset sales, engage in mergers, acquisitions, consolidations, liquidations and dissolutions, pay dividends or make other payments in respect of equity interests and other restricted payments, engage in certain transactions with affiliates, limit capital expenditures and make prepayments, redemptions and repurchases of other indebtedness.

During the first nine months of 2013, the Company made mandatory debt repayments of $1.0 million, plus interest, on its State of Ohio loans. Prior to the refinancing, Appvion had borrowed an additional $36.9 million,net, from the old revolving credit facility. This was repaid in full with $6.0 million of proceeds from the $335 million first lien term loan and $34.6 million of borrowing from the new revolving credit facility. Year-to-date through September 29, 2013, the Company borrowed $129.1 million and repaid $109.1 million on its new revolving credit facility, leaving an outstanding balance at quarter-end of $20.0 million. In addition, approximately $12.9 million of the new revolving credit facility was used to support outstanding letters of credit.

During March 2012, the Company received the proceeds of a $0.3 million note issued to Appvion., Inc. by Columbia County, Wisconsin.

The second lien notes, as amended, contain covenants that restrict Appvion’s ability and the ability of Appvion’s other guarantors to sell assets or merge or consolidate with or into other companies; borrow money; incur liens; pay dividends or make other distributions; make other restricted payments and investments; place restrictions on the ability of certain subsidiaries to pay dividends or other payments to Appvion; enter into sale and leaseback transactions; amend particular agreements relating to the transaction with former parent AWA and the ESOP; and enter into transactions with certain affiliates. These covenants are subject to important exceptions and qualifications set forth in the indenture governing the 11.25% second lien notes due 2015, as amended.

The senior subordinated notes, as amended, are unconditionally guaranteed by PDC and Rose Holdings Limited, subject to certain limitations.

The Company was in compliance with all debt covenants at September 29, 2013, and is forecasted to remain compliant for the next 12 months. The Company’s ability to comply with the financial covenants in the future depends on achieving forecasted operating results and operating cash flows. The Company’s failure to comply with its covenants, or an assessment that it is likely to fail to comply with its covenants, could lead the Company to seek amendments to, or waivers of, the financial covenants. The Company cannot provide assurance that it would be able to obtain any amendments to or waivers of the covenants. In the event of noncompliance with debt covenants, if the lenders will not amend or waive the covenants, the debt would be due and the Company would need to seek alternative financing. The Company cannot provide assurance that it would be able to obtain alternative financing. If the Company were not able to secure alternative financing, this would have a material adverse impact on the Company.

XML

Derivative Instruments And Hedging Activities (Schedule Of Fair Values Of Derivative Instruments Included In Company's Condensed Consolidated Balance Sheets) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2013	Dec. 29, 2012
Foreign Currency Exchange Derivatives [Member] | Designated As A Hedge [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments in Hedges, Assets, at Fair Value	$ (510)	$ (1,014)
Natural Gas Collar [Member] | Not Designated As A Hedge [Member]
Derivatives, Fair Value [Line Items]
Natural gas collar	65	(43)
Interest Rate Swap [Member] | Designated As A Hedge [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments in Hedges, Assets, at Fair Value	$ (1,334)

XML

Derivative Instruments And Hedging Activities (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Apr. 01, 2012 contract	Jul. 30, 2013 Interest Rate Swap [Member]	Sep. 29, 2013 Designated As A Hedge [Member]	Sep. 29, 2013 Designated As A Hedge [Member] Natural Gas [Member] MMBTU	Feb. 29, 2012 Not Designated As A Hedge [Member] Pulp [Member] T
Derivative [Line Items]
Notional amount of foreign exchange contracts			$ 17.3
Notional nonmonetary amount of price risk derivatives				1,798,255
Notional nonmonetary amount of price risk derivatives, mass					2,000
Number of Price Risk Derivatives Held	2
Derivative, Fixed Interest Rate		7.24%
Notional Amount of Interest Rate Cash Flow Hedge Derivatives		$ 100