Delaware
|
20-5234618
|
(State or other jurisdiction
of incorporation or organization)
|
(IRS employer
identification number)
|
101 Oakley Street
Evansville, Indiana
|
47710
|
(Address of principal executive offices)
|
(Zip code)
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.01 par value per share
|
New York Stock Exchange
|
·
|
risks associated with our substantial indebtedness and debt service;
|
·
|
changes in prices and availability of resin and other raw materials and our ability to pass on changes in raw material prices on a timely basis;
|
·
|
performance of our business and future operating results;
|
·
|
risks related to our acquisition strategy and integration of acquired businesses;
|
·
|
reliance on unpatented know-how and trade secrets;
|
·
|
increases in the cost of compliance with laws and regulations, including environmental, safety, and production and product laws and regulations;
|
·
|
risks related to disruptions in the overall economy and the financial markets that may adversely impact our business;
|
·
|
catastrophic loss of one of our key manufacturing facilities, natural disasters, and other unplanned business interruptions;
|
·
|
risks of competition, including foreign competition, in our existing and future markets;
|
·
|
general business and economic conditions, particularly an economic downturn;
|
·
|
risks that our restructuring program may entail greater implementation costs or result in lower cost savings than anticipated;
|
·
|
the ability of our insurance to cover fully our potential exposures; and
|
·
|
the other factors discussed in our Form 10-K for the fiscal year ended September 28, 2013 in the section titled “Risk Factors.”
|
Part I.
|
Financial Information
|
Page No.
|
|
Item 1.
|
|||
Item 2.
|
Management’s Discussion and Analysis of
|
||
Item 3.
|
|||
Item 4.
|
|||
Part II.
|
Other Information
|
||
Item 1.
|
|||
Item 1A.
|
|||
Item 2.
|
|||
Item 3.
|
|||
Item 4.
|
|||
Item 5.
|
|||
Item 6.
|
|||
December 28, 2013
|
September 28, 2013
|
|||||||
Assets
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 162 | $ | 142 | ||||
Accounts receivable (less allowance of $3 at December 28, 2013 and September 28, 2013)
|
405 | 449 | ||||||
Inventories:
|
||||||||
Finished goods
|
333 | 335 | ||||||
Raw materials and supplies
|
239 | 240 | ||||||
572 | 575 | |||||||
Deferred income taxes
|
260 | 139 | ||||||
Prepaid expenses and other current assets
|
45 | 32 | ||||||
Total current assets
|
1,444 | 1,337 | ||||||
Property, plant, and equipment, net
|
1,280 | 1,266 | ||||||
Goodwill, intangible assets and deferred costs, net
|
2,528 | 2,520 | ||||||
Other assets
|
12 | 12 | ||||||
Total assets
|
$ | 5,264 | $ | 5,135 | ||||
Liabilities and stockholders’ equity (deficit)
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 362 | $ | 337 | ||||
Accrued expenses and other current liabilities
|
327 | 276 | ||||||
Current portion of long-term debt
|
74 | 71 | ||||||
Total current liabilities
|
763 | 684 | ||||||
Long-term debt, less current portion
|
3,875 | 3,875 | ||||||
Deferred income taxes
|
509 | 385 | ||||||
Other long-term liabilities
|
300 | 387 | ||||||
Total liabilities
|
5,447 | 5,331 | ||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity (deficit):
|
||||||||
Common stock; ($0.01 par value; 400,000,000 shares authorized; 116,279,187 shares issued and 116,208,703 shares outstanding as of December 28, 2013; 115,895,927 issued and 115,825,443 outstanding as of September 28, 2013)
|
1 | 1 | ||||||
Additional paid-in capital
|
330 | 322 | ||||||
Non-controlling interest
|
3 | 3 | ||||||
Accumulated deficit
|
(498 | ) | (504 | ) | ||||
Accumulated other comprehensive loss
|
(19 | ) | (18 | ) | ||||
Total stockholders’ equity (deficit)
|
(183 | ) | (196 | ) | ||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 5,264 | $ | 5,135 |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Net sales
|
$ | 1,140 | $ | 1,072 | ||||
Costs and expenses:
|
||||||||
Cost of goods sold
|
964 | 895 | ||||||
Selling, general and administrative
|
77 | 77 | ||||||
Amortization of intangibles
|
26 | 27 | ||||||
Restructuring and impairment charges
|
10 | 5 | ||||||
Operating income
|
63 | 68 | ||||||
Debt extinguishment
|
— | 16 | ||||||
Other income, net
|
(1 | ) | (3 | ) | ||||
Interest expense, net
|
55 | 70 | ||||||
Income (loss) before income taxes
|
9 | (15 | ) | |||||
Income tax expense (benefit)
|
3 | (5 | ) | |||||
Net income (loss)
|
$ | 6 | $ | (10 | ) | |||
Comprehensive income (loss)
|
$ | 5 | $ | (7 | ) | |||
Net income (loss) per share:
|
||||||||
Basic
|
$ | 0.05 | $ | (0.09 | ) | |||
Diluted
|
0.05 | (0.09 | ) | |||||
Outstanding weighted-average shares:
(in thousands)
|
||||||||
Basic
|
115,933 | 111,352 | ||||||
Diluted
|
120,479 | 111,352 | ||||||
Common Stock
|
Paid-in Capital
|
Notes Receivable-Common Stock
|
Non-controlling Interest
|
Accumulated Other Comprehensive Loss
|
Accumulated Deficit
|
Total
|
||||||||||||||||||||||
Balance at September 29, 2012
|
$ | 1 | $ | 131 | $ | (2 | ) | $ | 3 | $ | (47 | ) | $ | (561 | ) | $ | (475 | ) | ||||||||||
Proceeds from issuance of common stock
|
— | 4 | — | — | — | — | 4 | |||||||||||||||||||||
Stock compensation expense
|
— | 4 | — | — | — | — | 4 | |||||||||||||||||||||
Termination of redeemable shares redemption requirement
|
— | 23 | — | — | — | — | 23 | |||||||||||||||||||||
Proceeds from initial public offering
|
— | 438 | — | — | — | — | 438 | |||||||||||||||||||||
Initial obligation under tax receivable agreement
|
— | (300 | ) | — | — | — | — | (300 | ) | |||||||||||||||||||
Derivative amortization
|
— | — | — | — | 1 | — | 1 | |||||||||||||||||||||
Net loss
|
— | — | — | — | — | (10 | ) | (10 | ) | |||||||||||||||||||
Currency translation
|
— | — | — | — | 2 | — | 2 | |||||||||||||||||||||
Balance at December 29, 2012
|
$ | 1 | $ | 300 | $ | (2 | ) | $ | 3 | $ | (44 | ) | $ | (571 | ) | $ | (313 | ) | ||||||||||
Balance at September 28, 2013
|
$ | 1 | $ | 322 | $ | — | $ | 3 | $ | (18 | ) | $ | (504 | ) | $ | (196 | ) | |||||||||||
Proceeds from issuance of common stock
|
— | 3 | — | — | — | — | 3 | |||||||||||||||||||||
Stock compensation expense
|
— | 5 | — | — | — | — | 5 | |||||||||||||||||||||
Net income
|
— | — | — | — | — | 6 | 6 | |||||||||||||||||||||
Currency translation
|
— | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
Balance at December 28, 2013
|
$ | 1 | $ | 330 | $ | — | $ | 3 | $ | (19 | ) | $ | (498 | ) | $ | (183 | ) |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net income (loss)
|
$ | 6 | $ | (10 | ) | |||
Adjustments to reconcile net cash provided by operating activities:
|
||||||||
Depreciation
|
59 | 60 | ||||||
Amortization of intangibles
|
26 | 27 | ||||||
Non-cash interest expense
|
2 | 5 | ||||||
Deferred income tax
|
4 | (5 | ) | |||||
Debt extinguishment
|
— | 16 | ||||||
Stock compensation expense
|
5 | 4 | ||||||
Impairment of long-lived assets
|
2 | — | ||||||
Other non-cash items
|
1 | 1 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable, net
|
51 | 61 | ||||||
Inventories
|
14 | (14 | ) | |||||
Prepaid expenses and other assets
|
(4 | ) | 12 | |||||
Accounts payable and other liabilities
|
6 | (70 | ) | |||||
Net cash from operating activities
|
172 | 87 | ||||||
Cash Flows from Investing Activities:
|
||||||||
Additions to property, plant and equipment
|
(47 | ) | (45 | ) | ||||
Proceeds from sale of assets
|
1 | 2 | ||||||
Deposit on acquisition of business
|
(5 | ) | — | |||||
Acquisition of business, net of cash acquired
|
(62 | ) | (20 | ) | ||||
Net cash from investing activities
|
(113 | ) | (63 | ) | ||||
Cash Flows from Financing Activities:
|
||||||||
Proceeds from long-term borrowings
|
3 | 1 | ||||||
Repayments on long-term borrowings
|
(13 | ) | (522 | ) | ||||
Proceeds from issuance of common stock
|
3 | 4 | ||||||
Payment of tax receivable agreement
|
(32 | ) | — | |||||
Proceeds from initial public offering
|
— | 438 | ||||||
Net cash from financing activities
|
(39 | ) | (79 | ) | ||||
Effect of exchange rate changes on cash
|
— | — | ||||||
Net change in cash
|
20 | (55 | ) | |||||
Cash and cash equivalents at beginning of period
|
142 | 87 | ||||||
Cash and cash equivalents at end of period
|
$ | 162 | $ | 32 |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Rigid Open Top
|
||||||||
Severance and termination benefits
|
$ | 1 | $ | 1 | ||||
Total
|
$ | 1 | $ | 1 | ||||
Rigid Closed Top
|
||||||||
Severance and termination benefits
|
$ | — | $ | 1 | ||||
Facility exit costs and other
|
— | 1 | ||||||
Asset impairment
|
— | — | ||||||
Total
|
$ | — | $ | 2 | ||||
Engineered Materials
|
||||||||
Severance and termination benefits
|
$ | 1 | $ | 1 | ||||
Facility exit costs and other
|
— | — | ||||||
Asset impairment
|
2 | — | ||||||
Total
|
$ | 3 | $ | 1 | ||||
Flexible Packaging
|
||||||||
Severance and termination benefits
|
$ | 3 | $ | — | ||||
Facility exit costs and other
|
3 | 1 | ||||||
Asset impairment
|
— | — | ||||||
Total
|
$ | 6 | $ | 1 | ||||
Consolidated
|
||||||||
Severance and termination benefits
|
$ | 5 | $ | 3 | ||||
Facility exit costs and other
|
3 | 2 | ||||||
Asset impairment
|
2 | — | ||||||
Total
|
$ | 10 | $ | 5 |
Severance and termination benefits
|
Facilities exit costs and other
|
Non-cash
|
Total
|
|||||||||||||
Balance at September 29, 2012
|
$ | 4 | $ | 3 | $ | — | $ | 7 | ||||||||
Charges
|
5 | 3 | 6 | 14 | ||||||||||||
Non-cash asset impairment
|
— | — | (6 | ) | (6 | ) | ||||||||||
Cash payments
|
(7 | ) | (4 | ) | — | (11 | ) | |||||||||
Balance at September 28, 2013
|
2 | 2 | — | 4 | ||||||||||||
Charges
|
5 | 3 | 2 | 10 | ||||||||||||
Non-cash asset impairment
|
— | — | (2 | ) | (2 | ) | ||||||||||
Cash payments
|
(1 | ) | (3 | ) | — | (4 | ) | |||||||||
Balance at December 28, 2013
|
$ | 6 | $ | 2 | $ | — | $ | 8 |
December 28, 2013
|
September 28, 2013
|
|||||||
Employee compensation, payroll and other taxes
|
$ | 68 | $ | 86 | ||||
Interest
|
51 | 45 | ||||||
Rebates
|
62 | 55 | ||||||
Tax receivable agreement obligation
|
85 | 32 | ||||||
Other
|
61 | 58 | ||||||
$ | 327 | $ | 276 |
December 28, 2013
|
September 28, 2013
|
|||||||
Lease retirement obligation
|
$ | 23 | $ | 22 | ||||
Sale-lease back deferred gain
|
31 | 32 | ||||||
Pension liability
|
41 | 43 | ||||||
Tax receivable agreement obligation
|
191 | 277 | ||||||
Other
|
14 | 13 | ||||||
$ | 300 | $ | 387 |
Maturity Date
|
December 28, 2013
|
September 28, 2013
|
|||||||
Term loan
|
April 2015
|
$ | 1,122 | $ | 1,125 | ||||
Term loan
|
February 2020
|
1,393 | 1,397 | ||||||
Revolving line of credit
|
June 2016
|
— | — | ||||||
9½% Second Priority Senior Secured Notes
|
May 2018
|
500 | 500 | ||||||
9¾% Second Priority Senior Secured Notes
|
January 2021
|
800 | 800 | ||||||
Senior Unsecured Term Loan
|
June 2014
|
18 | 18 | ||||||
Debt discount, net
|
(7 | ) | (8 | ) | |||||
Capital leases and other
|
Various
|
123 | 114 | ||||||
3,949 | 3,946 | ||||||||
Less current portion of long-term debt
|
(74 | ) | (71 | ) | |||||
$ | 3,875 | $ | 3,875 |
Liability Derivatives
|
|||||||||
Derivatives instruments
|
Balance Sheet Location
|
December 28, 2013
|
September 28, 2013
|
||||||
Interest rate swaps — 2010 Swaps
|
Other long-term liabilities
|
$ | — | $ | 1 |
Quarterly Period Ended
|
|||||||||
Derivatives not designated as hedging
instruments under FASB guidance
|
Statement of Operations Location
|
December 28, 2013
|
December 29, 2012
|
||||||
Interest rate swaps — 2010 Swaps
|
Other income
|
$ | (1 | ) | $ | (1 | ) | ||
Interest expense
|
$ | 1 | $ | 1 |
As of December 28, 2013
|
|||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
Total
|
Quarterly Period Ended
December 28, 2013 Impairment Loss
|
|||||||||||||||||
Indefinite-lived trademarks
|
$ | — | $ | — | $ | 207 | $ | 207 | $ | — | |||||||||||
Goodwill
|
— | — | 1,644 | 1,644 | — | ||||||||||||||||
Definite lived intangible assets
|
— | — | 649 | 649 | — | ||||||||||||||||
Property, plant, and equipment
|
— | — | 1,280 | 1,280 | 2 | ||||||||||||||||
Total
|
$ | — | $ | — | $ | 3,780 | $ | 3,780 | $ | 2 |
As of September 28, 2013
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
Total
|
Fiscal 2013
Impairment Loss
|
||||||||||||||||
Indefinite-lived trademarks
|
$ | — | $ | — | $ | 207 | $ | 207 | $ | — | ||||||||||
Goodwill
|
— | — | 1,634 | 1,634 | — | |||||||||||||||
Definite lived intangible assets
|
— | — | 649 | 649 | 5 | |||||||||||||||
Property, plant, and equipment
|
— | — | 1,266 | 1,266 | — | |||||||||||||||
Total
|
$ | — | $ | — | $ | 3,756 | $ | 3,756 | $ | 5 |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29,
2012
|
|||||||
Income tax benefit computed at statutory rate
|
$ | 3 | $ | (5 | ) | |||
State income tax benefit, net of federal taxes
|
— | — | ||||||
Uncertain tax position
|
(1 | ) | — | |||||
Other
|
1 | — | ||||||
Income tax expense (benefit)
|
$ | 3 | $ | (5 | ) |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Net sales:
|
||||||||
Rigid Open Top
|
$ | 261 | $ | 259 | ||||
Rigid Closed Top
|
332 | 313 | ||||||
Rigid Packaging
|
$ | 593 | $ | 572 | ||||
Engineered Materials
|
342 | 325 | ||||||
Flexible Packaging
|
205 | 175 | ||||||
Total net sales
|
$ | 1,140 | $ | 1,072 | ||||
Operating income (loss):
|
||||||||
Rigid Open Top
|
$ | 13 | $ | 27 | ||||
Rigid Closed Top
|
30 | 18 | ||||||
Rigid Packaging
|
$ | 43 | $ | 45 | ||||
Engineered Materials
|
25 | 24 | ||||||
Flexible Packaging
|
(5 | ) | (1 | ) | ||||
Total operating income
|
$ | 63 | $ | 68 | ||||
Depreciation and amortization:
|
||||||||
Rigid Open Top
|
$ | 23 | $ | 23 | ||||
Rigid Closed Top
|
30 | 32 | ||||||
Rigid Packaging
|
$ | 53 | $ | 55 | ||||
Engineered Materials
|
19 | 18 | ||||||
Flexible Packaging
|
13 | 14 | ||||||
Total depreciation and amortization
|
$ | 85 | $ | 87 |
December 28, 2013
|
September 28, 2013
|
|||||||||||
Total assets:
|
||||||||||||
Rigid Open Top
|
$ | 1,802 | $ | 1,805 | ||||||||
Rigid Closed Top
|
1,995 | 1,964 | ||||||||||
Rigid Packaging | $ | 3,797 | $ | 3,769 | ||||||||
Engineered Materials
|
823 | 817 | ||||||||||
Flexible Packaging
|
644 | 549 | ||||||||||
Total assets
|
$ | 5,264 | $ | 5,135 | ||||||||
Goodwill:
|
||||||||||||
Rigid Open Top
|
$ | 681 | $ | 681 | ||||||||
Rigid Closed Top
|
830 | 831 | ||||||||||
Rigid Packaging
|
$ | 1,511 | $ | 1,512 | ||||||||
Engineered Materials
|
73 | 73 | ||||||||||
Flexible Packaging
|
60 | 49 | ||||||||||
Total goodwill
|
$ | 1,644 | $ | 1,634 |
December 28, 2013
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non—
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Current assets
|
260 | 212 | 824 | 158 | (10 | ) | 1,444 | |||||||||||||||||
Intercompany receivable
|
327 | 3,423 | — | 49 | (3,799 | ) | — | |||||||||||||||||
Property, plant and equipment, net
|
— | 91 | 1,120 | 69 | — | 1,280 | ||||||||||||||||||
Other assets
|
765 | 1,100 | 2,290 | 759 | (2,374 | ) | 2,540 | |||||||||||||||||
Total assets
|
$ | 1,352 | $ | 4,826 | $ | 4,234 | $ | 1,035 | $ | (6,183 | ) | $ | 5,264 | |||||||||||
Current liabilities
|
94 | 193 | 411 | 75 | (10 | ) | 763 | |||||||||||||||||
Intercompany payable
|
— | — | 3,799 | — | (3,799 | ) | — | |||||||||||||||||
Other long-term liabilities
|
1,441 | 3,915 | 41 | 5 | (718 | ) | 4,684 | |||||||||||||||||
Stockholders’ equity (deficit)
|
(183 | ) | 718 | (17 | ) | 955 | (1,656 | ) | (183 | ) | ||||||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 1,352 | $ | 4,826 | $ | 4,234 | $ | 1,035 | $ | (6,183 | ) | $ | 5,264 |
September 28, 2013
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Current assets
|
139 | 186 | 864 | 158 | (10 | ) | 1,337 | |||||||||||||||||
Intercompany receivable
|
348 | 3,448 | — | 40 | (3,836 | ) | — | |||||||||||||||||
Property, plant and equipment, net
|
— | 115 | 1,079 | 72 | — | 1,266 | ||||||||||||||||||
Other assets
|
768 | 1,054 | 2,277 | 737 | (2,304 | ) | 2,532 | |||||||||||||||||
Total assets
|
$ | 1,255 | $ | 4,803 | $ | 4,220 | $ | 1,007 | $ | (6,150 | ) | $ | 5,135 | |||||||||||
Current liabilities
|
41 | 197 | 374 | 83 | (11 | ) | 684 | |||||||||||||||||
Intercompany payable
|
— | — | 3,837 | — | (3,837 | ) | — | |||||||||||||||||
Other long-term liabilities
|
1,410 | 3,919 | 44 | 6 | (732 | ) | 4,647 | |||||||||||||||||
Stockholders’ equity (deficit)
|
(196 | ) | 687 | (35 | ) | 918 | (1,570 | ) | (196 | ) | ||||||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | 1,255 | $ | 4,803 | $ | 4,220 | $ | 1,007 | $ | (6,150 | ) | $ | 5,135 |
Quarterly Period Ended December 28, 2013
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | — | $ | 146 | $ | 907 | $ | 87 | $ | — | $ | 1,140 | ||||||||||||
Cost of goods sold
|
— | 131 | 762 | 71 | — | 964 | ||||||||||||||||||
Selling, general and administrative
|
— | 19 | 51 | 7 | — | 77 | ||||||||||||||||||
Amortization of intangibles
|
— | 3 | 21 | 2 | — | 26 | ||||||||||||||||||
Restructuring and impairment charges
|
— | — | 10 | — | — | 10 | ||||||||||||||||||
Operating income (loss)
|
— | (7 | ) | 63 | 7 | — | 63 | |||||||||||||||||
Debt extinguishment
|
— | — | — | — | — | — | ||||||||||||||||||
Other income, net
|
— | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||
Interest expense, net
|
13 | 6 | 44 | (33 | ) | 25 | 55 | |||||||||||||||||
Equity in net income of subsidiaries
|
(22 | ) | (58 | ) | — | — | 80 | — | ||||||||||||||||
Income (loss) before income taxes
|
9 | 46 | 19 | 40 | (105 | ) | 9 | |||||||||||||||||
Income tax expense (benefit)
|
3 | 16 | — | 1 | (17 | ) | 3 | |||||||||||||||||
Net income (loss)
|
$ | 6 | $ | 30 | $ | 19 | $ | 39 | $ | (88 | ) | $ | 6 | |||||||||||
Comprehensive income (loss)
|
$ | 6 | $ | 30 | $ | 19 | $ | 38 | $ | (88 | ) | $ | 5 |
Consolidating Statement of Cash Flows
|
||||||||||||||||||||||||
Cash Flow from Operating Activities
|
$ | — | $ | — | $ | 162 | $ | 10 | $ | — | $ | 172 | ||||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
— | (2 | ) | (44 | ) | (1 | ) | — | (47 | ) | ||||||||||||||
Proceeds from sale of assets
|
— | — | 1 | — | — | 1 | ||||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
(3 | ) | 3 | — | — | — | — | |||||||||||||||||
Intercompany advances (repayments)
|
— | 30 | — | — | (30 | ) | — | |||||||||||||||||
Deposit on acquisition of business
|
— | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Acquisition of business, net of cash acquired
|
— | — | (62 | ) | — | — | (62 | ) | ||||||||||||||||
Net cash from investing activities
|
(3 | ) | 31 | (105 | ) | (6 | ) | (30 | ) | (113 | ) | |||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term borrowings
|
— | — | — | 3 | — | 3 | ||||||||||||||||||
Proceeds from issuance of common stock
|
3 | — | — | — | — | 3 | ||||||||||||||||||
Payment of tax receivable agreement
|
(32 | ) | — | — | — | — | (32 | ) | ||||||||||||||||
Repayments on long-term borrowings
|
— | (13 | ) | — | — | — | (13 | ) | ||||||||||||||||
Changes in intercompany balances
|
32 | — | (57 | ) | (5 | ) | 30 | — | ||||||||||||||||
Net cash provided from financing activities
|
3 | (13 | ) | (57 | ) | (2 | ) | 30 | (39 | ) | ||||||||||||||
Effect of exchange rate on cash
|
— | — | — | — | — | — | ||||||||||||||||||
Net change in cash
|
— | 18 | — | 2 | — | 20 | ||||||||||||||||||
Cash and cash equivalents at beginning of period
|
— | 116 | — | 26 | — | 142 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | — | $ | 134 | $ | — | $ | 28 | $ | — | $ | 162 |
Quarterly Period Ended December 29, 2012
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non—
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | — | $ | 133 | $ | 849 | $ | 90 | $ | — | $ | 1,072 | ||||||||||||
Cost of goods sold
|
— | 137 | 694 | 64 | — | 895 | ||||||||||||||||||
Selling, general and administrative
|
— | 10 | 58 | 9 | — | 77 | ||||||||||||||||||
Amortization of intangibles
|
— | 3 | 23 | 1 | — | 27 | ||||||||||||||||||
Restructuring and impairment charges
|
— | — | 5 | — | — | 5 | ||||||||||||||||||
Operating income (loss)
|
— | (17 | ) | 69 | 16 | — | 68 | |||||||||||||||||
Debt extinguishment
|
— | 16 | — | — | — | 16 | ||||||||||||||||||
Other income, net
|
— | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||
Interest expense, net
|
11 | 9 | 55 | (31 | ) | 26 | 70 | |||||||||||||||||
Equity in net income of subsidiaries
|
(4 | ) | (62 | ) | — | — | 58 | — | ||||||||||||||||
Income (loss) before income taxes
|
(15 | ) | 23 | 14 | 47 | (84 | ) | (15 | ) | |||||||||||||||
Income tax expense (benefit)
|
(5 | ) | 10 | (1 | ) | — | (9 | ) | (5 | ) | ||||||||||||||
Net income (loss)
|
$ | (10 | ) | $ | 13 | $ | 15 | $ | 47 | $ | (75 | ) | $ | (10 | ) | |||||||||
Comprehensive income (loss)
|
$ | (10 | ) | $ | 14 | $ | 15 | $ | 49 | $ | (75 | ) | $ | (7 | ) |
Consolidating Statement of Cash Flows
|
||||||||||||||||||||||||
Cash Flow from Operating Activities
|
$ | — | $ | (21 | ) | $ | 95 | $ | 13 | $ | — | $ | 87 | |||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
— | (2 | ) | (42 | ) | (1 | ) | — | (45 | ) | ||||||||||||||
Proceeds from sale of assets
|
— | — | 2 | — | — | 2 | ||||||||||||||||||
Investment in Parent
|
— | — | — | (21 | ) | 21 | — | |||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
(442 | ) | 421 | — | — | 21 | — | |||||||||||||||||
Intercompany advances (repayments)
|
— | 46 | — | — | (46 | ) | — | |||||||||||||||||
Acquisition of business, net of cash acquired
|
— | — | (20 | ) | — | — | (20 | ) | ||||||||||||||||
Net cash from investing activities
|
(442 | ) | 465 | (60 | ) | (22 | ) | (4 | ) | (63 | ) | |||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term borrowings
|
— | — | — | 1 | — | 1 | ||||||||||||||||||
Proceeds from issuance of common stock
|
4 | — | — | — | — | 4 | ||||||||||||||||||
Proceeds from initial public offering
|
438 | — | — | — | — | 438 | ||||||||||||||||||
Repayments of long-term borrowings
|
— | (501 | ) | — | — | (21 | ) | (522 | ) | |||||||||||||||
Changes in intercompany balances
|
— | — | (34 | ) | (12 | ) | 46 | — | ||||||||||||||||
Contribution from Issuer
|
— | — | — | 21 | (21 | ) | — | |||||||||||||||||
Net cash from financing activities
|
442 | (501 | ) | (34 | ) | 10 | 4 | (79 | ) | |||||||||||||||
Effect of exchange rate on cash
|
— | — | — | — | — | — | ||||||||||||||||||
Net change in cash
|
— | (57 | ) | 1 | 1 | — | (55 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of period
|
— | 66 | — | 21 | — | 87 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | — | $ | 9 | $ | 1 | $ | 22 | $ | — | $ | 32 |
Quarterly Period Ended
|
||||||||
December 28, 2013
|
December 29, 2012
|
|||||||
Net income (loss)
|
$ | 6 | $ | (10 | ) | |||
Weighted average shares of common stock outstanding--
basic (in thousands)
|
115,933 | 111,352 | ||||||
Other common stock equivalents (in thousands)
|
4,546 | — | ||||||
Weighted average shares of common stock outstanding--
diluted (in thousands)
|
120,479 | 111,352 | ||||||
Basic net income (loss) per share
|
$ | 0.05 | $ | (0.09 | ) | |||
Diluted net income (loss) per share
|
$ | 0.05 | $ | (0.09 | ) |
Currency Translation
|
Defined Benefit Pension and Retiree Health Benefit Plans
|
Interest Rate Hedges
|
Accumulated Other Comprehensive Loss
|
|||||||||||||
Balance as of September 28, 2013
|
$ | (20 | ) | $ | (8 | ) | $ | 10 | $ | (18 | ) | |||||
Other comprehensive loss
|
(1 | ) | - | - | (1 | ) | ||||||||||
Tax expense (benefit)
|
- | - | - | - | ||||||||||||
Balance as of December 28, 2013
|
$ | (21 | ) | $ | (8 | ) | $ | 10 | $ | (19 | ) |
Polyethylene Butene Film
|
Polypropylene
|
|||||||||||||||||||||||
2014
|
2013
|
2012
|
2014
|
2013
|
2012
|
|||||||||||||||||||
1st quarter
|
$ | .82 | $ | .69 | $ | .68 | $ | .89 | $ | .76 | $ | .79 | ||||||||||||
2nd quarter
|
— | .74 | .76 | — | .96 | .88 | ||||||||||||||||||
3rd quarter
|
— | .77 | .72 | — | .84 | .85 | ||||||||||||||||||
4th quarter
|
— | .79 | .68 | — | .89 | .71 |
Quarterly Period Ended
|
||||||||||||||||
December 28, 2013
|
December 29, 2012
|
$ Change
|
% Change
|
|||||||||||||
Net sales:
|
||||||||||||||||
Rigid Open Top
|
$ | 261 | $ | 259 | $ | 2 | 1 | % | ||||||||
Rigid Closed Top
|
332 | 313 | 19 | 6 | % | |||||||||||
Rigid Packaging
|
$ | 593 | $ | 572 | $ | 21 | 4 | % | ||||||||
Engineered Materials
|
342 | 325 | 17 | 5 | % | |||||||||||
Flexible Packaging
|
205 | 175 | 30 | 17 | % | |||||||||||
Total net sales
|
$ | 1,140 | $ | 1,072 | $ | 68 | 6 | % |
Quarterly Period Ended
|
||||||||||||||||
December 28, 2013
|
December 29, 2012
|
$ Change
|
% Change
|
|||||||||||||
Operating income:
|
||||||||||||||||
Rigid Open Top
|
$ | 13 | $ | 27 | $ | (14 | ) | (52 | %) | |||||||
Rigid Closed Top
|
30 | 18 | 12 | 67 | % | |||||||||||
Rigid Packaging
|
$ | 43 | $ | 45 | $ | (2 | ) | (4 | %) | |||||||
Engineered Materials
|
25 | 24 | 1 | 4 | % | |||||||||||
Flexible Packaging
|
(5 | ) | (1 | ) | (4 | ) | 400 | % | ||||||||
Total operating income
|
$ | 63 | $ | 68 | $ | (5 | ) | (7 | %) |
December 28, 2013
|
||||||||
Four Quarters Ended
|
Quarterly Period Ended
|
|||||||
Adjusted EBITDA
|
$ | 801 | $ | 174 | ||||
Net interest expense
|
(229 | ) | (55 | ) | ||||
Depreciation and amortization
|
(339 | ) | (85 | ) | ||||
Income tax expense
|
(36 | ) | (3 | ) | ||||
Business optimization and other expense
|
(30 | ) | (13 | ) | ||||
Restructuring and impairment
|
(19 | ) | (10 | ) | ||||
Extinguishment of debt
|
(48 | ) | - | |||||
Pro forma acquisitions
|
(8 | ) | - | |||||
Unrealized cost savings
|
(19 | ) | (2 | ) | ||||
Net income
|
$ | 73 | $ | 6 |
Cash flow from operating activities
|
$ | 549 | $ | 172 | ||||
Net additions to property, plant, and equipment
|
(224 | ) | (46 | ) | ||||
Payments of tax receivable agreement
|
(37 | ) | (32 | ) | ||||
Adjusted free cash flow
|
$ | 288 | $ | 94 | ||||
Cash flow from investing activities
|
(295 | ) | (113 | ) | ||||
Cash flow from financing activities
|
(124 | ) | (39 | ) |
10.1
|
Employment agreement, dated as of January 1, 2002, between Berry Plastics Corporation and Curtis Begle
|
10.2
|
U.S. $1,125,000,000 Incremental Assumption Agreement, dated as of January 6, 2014, by and among Berry Plastics Group, Inc., Berry Plastics Corporation and certain of its subsidiaries referenced therein and Credit Suisse AG, Cayman Islands Branch
|
10.3
|
Amendment No. 1 to Employment agreement, dated as of January 1, 2002, between Berry Plastics Corporation and Curtis Begle
|
10.4
|
Amendment No. 2 to Employment agreement, dated as of January 1, 2002, between Berry Plastics Corporation and Curtis Begle
|
10.5
|
Amendment No. 3 to Employment agreement, dated as of January 1, 2002, between Berry Plastics Corporation and Curtis Begle
|
10.6
|
Amendment No. 4 to Employment agreement, dated as of January 1, 2002, between Berry Plastics Corporation and Curtis Begle
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer
|
32.1
|
Section 1350 Certification of the Chief Executive Officer
|
32.2
|
Section 1350 Certification of the Chief Financial Officer
|
Berry Plastics Group, Inc. | |||
January 31, 2014 | |||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Chief Financial Officer | |||
EMPLOYMENT AGREEMENT dated as of January 1, 2002 between BERRY PLASTICS CORPORATION, a Delaware corporation (the "Corporation"), and Curtis Begle (the "Employee").
|
BERRY PLASTICS CORPORATION
|
||
By:
|
/s/ Ira G. Boots
|
|
Ira G. Boots
President & Chief Executive Officer
|
||
/s/ Curtis Begle
|
||
Curtis Begle
|
BERRY PLASTICS CORPORATION | |||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer | |||
BERRY PLASTICS GROUP, INC. | |||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer | |||
BERRY PLASTICS TECHNICAL SERVICES, INC.
BERRY STERLING CORPORATION
CPI HOLDING CORPORATION
PESCOR, INC.
VENTURE PACKAGING, INC.
VENTURE PACKAGING MIDWEST, INC.
BERRY PLASTICS ACQUISITION CORPORATION V
BERRY PLASTICS OPCO, INC.
BERRY PLASTICS ACQUISITION CORPORATION IX
BERRY PLASTICS ACQUISITION CORPORATION XI
BERRY PLASTICS ACQUISITION CORPORATION XII
BERRY PLASTICS ACQUISITION CORPORATION XIII
CAPLAS NEPTUNE, LLC
CAPLAS LLC
PRIME LABEL & SCREEN INCORPORATED
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer | |||
BPREX CLOSURES, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer | |||
CARDINAL PACKAGING, INC.
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer | |||
BERRY PLASTICS SP, INC.
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer | |||
ROLLPAK CORPORATION
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
BPREX CLOSURES KENTUCKY INC.
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
BPREX CLOSURE SYSTEMS, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
BPREX DELTA INC.
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
BERRY PLASTICS FILMCO, INC.
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
AEROCON, LLC
BERRY PLASTICS IK, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
BERRY PLASTICS ACQUISITION CORPORATION XV, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
BERRY PLASTICS DESIGN, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
COVALENCE SPECIALTY COATINGS LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
COVALENCE SPECIALTY ADHESIVES LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
KERR GROUP, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
POLY-SEAL, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
BERRY PLASTICS ACQUISITION LLC X
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
SEAL FOR LIFE INDUSTRIES, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
SAFFRON ACQUISITION, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
SUN COAST INDUSTRIES, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
SETCO, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
GRAFCO INDUSTRIES LIMITED PARTNERSHIP
By: Caplas Neptune, LLC its General Partner
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
CAPTIVE PLASTICS HOLDINGS, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
CAPTIVE PLASTICS, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
KNIGHT PLASTICS, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
PACKERWARE, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
PLIANT, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
UNIPLAST HOLDINGS, LLC
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
UNIPLAST U.S., INC.
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
PLIANT CORPORATION INTERNATIONAL
|
|||
|
By:
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Title: Chief Financial Officer |
CREDIT SUISSE AG, CAYMAN ISLANDS
BRANCH, as Administrative Agent
|
|||
|
By:
|
/s/ Doreen Barn | |
Doreen Barr | |||
Title: Authorized Signatory | |||
By: | /s/Jean-Marc Vauclair | ||
Title: Authorized Signatory |
CREDIT SUISSE AG, CAYMAN ISLANDS
BRANCH, as Incremental Term Lender
|
|||
|
By:
|
/s/ Doreen Barn | |
Doreen Barr | |||
Title: Authorized Signatory | |||
By: | /s/ Jean-Marc Vauclair | ||
Title: Authorized Signatory |
Incremental Term Lender
|
Term E Loan Commitments
|
Credit Suisse AG, Cayman Islands Branch
|
$1,125,000,000.00
|
Date
|
Amount of Term E Loans to Be Repaid
|
|
June 30, 2014
|
$ | 2,812,500 |
September 30, 2014
|
$ | 2,812,500 |
December 31, 2014
|
$ | 2,812,500 |
March 31, 2015
|
$ | 2,812,500 |
June 30, 2015
|
$ | 2,812,500 |
September 30, 2015
|
$ | 2,812,500 |
December 31, 2015
|
$ | 2,812,500 |
March 31, 2016
|
$ | 2,812,500 |
June 30, 2016
|
$ | 2,812,500 |
September 30, 2016
|
$ | 2,812,500 |
December 31, 2016
|
$ | 2,812,500 |
March 31, 2017
|
$ | 2,812,500 |
June 30, 2017
|
$ | 2,812,500 |
September 30, 2017
|
$ | 2,812,500 |
December 31, 2017
|
$ | 2,812,500 |
March 31, 2018
|
$ | 2,812,500 |
June 30, 2018
|
$ | 2,812,500 |
September 30, 2018
|
$ | 2,812,500 |
December 31, 2018
|
$ | 2,812,500 |
March 31, 2019
|
$ | 2,812,500 |
June 30, 2019
|
$ | 2,812,500 |
September 30, 2019
|
$ | 2,812,500 |
December 31, 2019
|
$ | 2,812,500 |
March 31, 2020
|
$ | 2,812,500 |
June 30, 2020
|
$ | 2,812,500 |
September 30, 2020
|
$ | 2,812,500 |
December 31, 2020
|
$ | 2,812,500 |
Incremental Term Facility Maturity
Date with respect to the Term E Loans
|
$1,049,062,500 or remainder
|
AMENDMENT TO EMPLOYMENT AGREEMENT dated as of September 13, 2006, between Berry Plastics Corporation, a Delaware corporation (the “Corporation”), and CURTIS L. BEGLE (the “Employee”).
|
BERRY PLASTICS CORPORATION
|
|||
By:
|
/s/ Marcia Jochem
|
|
|
Name:
Title:
|
Marcia Jochem
Executive Vice President, Human Resources
|
/s/ Curtis L. Begle
|
|
||
Curtis L. Begle
|
|
1.
|
Section 5(h) of the Agreement is hereby amended to include the following text at the end thereof:
|
|
2.
|
Section 7(c) of the Agreement is hereby amended to include the following text at the end thereof:
|
|
3.
|
The final sentence of Section 8(c) of the Agreement is hereby amended to include the following text after the word "provided":
|
Sincerely,
BERRY PLASTICS CORPORATION
|
|
/s/ Marcia Jochem
|
|
Marcia Jochem
Executive Vice President, Human Resources
|
/s/ Curtis Begle
|
||
Printed Name: Curtis Begle
|
|
AMENDMENT NO. 3 dated as of August 1, 2010 between BERRY PLASTICS CORPORATION, a Delaware corporation (the "Corporation"), and CURTIS L. BEGLE (the "Employee").
|
|
1.
|
Termination of Employment. Section 8(b) of the Agreement is hereby amended by adding a new paragraph (iii) which reads in its entirety as follows:
|
|
2.
|
Effect of Amendment. Except as expressly amended hereby, the Agreement shall remain in full force and effect and unchanged.
|
|
3.
|
Counterparts. This Amendment No. 3 may be executed in one or more counterparts each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
|
BERRY PLASTICS CORPORATION
|
|||
By:
|
/s/ Marcia Jochem
|
|
|
Marcia Jochem
Executive Vice President, Human Resources
|
|||
/s/ Curtis Begle
|
|
||
Curtis Begle
|
1.
|
Amendments Effective on Agreement Expiration. The following amendments and modifications to the Agreement shall be effective as of the expiration of the Agreement:
|
||
A.
|
Employment., Effectiveness of Agreement. Section 1 of the Agreement is hereby deleted in its entirety and replaced with the following text:
|
||
The employment of the Employee hereunder shall continue indefinitely until terminated as provided herein. Such period of employment is hereinafter referred to as the “Employment Period”. The “Commencement Date” is the date that the Employee and the Corporation first executed an employment agreement regarding the Employee’s employment with the Corporation.
|
|||
B.
|
Term. Section 2 of the Agreement is deleted in its entirety.
|
||
C.
|
Effect of Termination of Employment. Section 8 of the Agreement is hereby deleted in its entirety and replaced with the following text:
|
||
Effect of Termination of Employment.
|
|||
(a)
|
Upon the effective date of termination of the Employee’s employment pursuant to Section 6, Section 7(a) or Section 7(c) hereof, neither the Employee nor the Employee’s beneficiaries or estate shall have any further rights under this Agreement or any claims against the Corporation arising out of this Agreement, except the right to receive, within 30 days of the Termination Date:
|
||
(i)
|
the unpaid portion of the Base Salary provided for in Section 5(a), computed on a pro rata basis to the Termination Date;
|
||
(ii)
|
reimbursement for any expenses for which the Employee shall not have theretofore been reimbursed, as provided in Section 5(d); and
|
||
(iii)
|
the unpaid portion of any amounts earned by the Employee prior to the Termination Date pursuant to any Benefit Arrangement; provided, however, unless specifically provided otherwise in this Section 8, the Employee shall not be entitled to receive any benefits under a Benefit Arrangement that have accrued during a fiscal year if the terms of such Benefit Arrangement require that the beneficiary be employed by the Corporation as of the end of such fiscal year.
|
|
|||
(b)
|
Upon the termination of the Employee’s employment pursuant to Section 7(b) prior to January 1, 2015, neither the Employee nor the Employee’s beneficiaries or estate shall have any further rights under this Agreement or any claims against the Corporation arising out of this Agreement, except the right to receive:
|
||
(i)
|
the unpaid portion of the Base Salary, computed on a pro rata basis, for the period from the Commencement Date until twelve (12) months after the Termination Date, payable in such installments as the Base Salary was paid prior to the Termination Date;
|
||
(ii)
|
the payments, if any, referred to in Sections 8(a)(ii) and (iii); and
|
||
(iii)
|
the applicable bonus provided for in Section 5(b) computed on a pro rata basis to the Termination Date, payable at the same time and in the same manner only as, if and when bonuses are paid to other employees of the Corporation of comparable level.
|
||
(c)
|
Upon the termination of the Employee’s employment pursuant to Section 7(b) on or after January 1, 2015, neither the Employee nor the Employee’s beneficiaries or estate shall have any further rights under this Agreement or any claims against the Corporation arising out of this Agreement, except the right to receive:
|
||
(i)
|
severance benefits pursuant to the provisions of the Berry Plastics Corporation Severance Pay Plan in effect as of the Termination Date;
|
||
(ii)
|
the payments, if any, referred to in Sections 8(a)(i), (ii) and (iii); and
|
||
(iii)
|
the payments, if any, referred to in Section 8(b)(iii).
|
||
(d)
|
The Employee’s obligations under Sections 9, 10 and 11 of this Agreement, and the Corporation’s obligations under this Section 8, shall survive the termination of this Agreement and the termination of the Employee’s employment hereunder.
|
||
(e)
|
In consideration for the promises and monies paid by the Corporation in accordance with the Agreement, the Employee must execute and return to the Corporation, and not revoke any part of, a Separation Agreement and Release (the “Release”) containing a general release and waiver of claims against the Corporation and its respective officers, directors, stockholders, employees and affiliates with respect to Employee’s employment, and other customary terms, in a form and substance substantially similar to the Release attached hereto as Schedule A. The Employee must deliver the executed Release within the minimum time period required by law or, if none, within 14 days after the Employee receives the Release from the Corporation.
|
D.
|
Restrictive Covenants. At the end of Section 10(a) of the Agreement, the following text is hereby added:
|
|
Notwithstanding the above, if Employee separates from employment and is an eligible employee under the Berry Plastics Corporation and Subsidiaries Severance Pay Plan (the “Plan”), Section 3(i) and (ii) above will be effective only during the time period Employee receives such severance payments under the Plan.
|
||
E.
|
Benefits of Agreement; Assignment. Section 12(f) of the Employment Agreement is hereby deleted in its entirety and replaced with the following text:
|
|
Benefits of Agreement; Assignment. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns, representatives, heirs and estate, as applicable. Anything contained herein to the contrary notwithstanding, this Agreement shall not be assignable by any party hereto without the consent of the other party hereto; provided however, the Corporation may assign this Agreement to any subsidiary or affiliate of the Corporation or to any purchaser of the equity interests or substantially all of the assets of the business segment of the Corporation to which Employee has been assigned.
|
||
2.
|
Current Amendments. The following amendments and modifications to the Agreement shall be effective as of December 31, 2011:
|
|
A.
|
Section 5(b) of the Agreement is hereby amended by adding the following text to the end thereof:
Any such bonus or incentive payment shall be paid no later than two and one-half months after the end of the fiscal year of which such payment is awarded, unless the Employee shall elect to defer the receipt of such payment pursuant to an arrangement that meets the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).
|
|
B.
|
Section 7(c) of the Agreement is hereby amended by adding the following text to the end thereof:
Notwithstanding the foregoing, in no event shall the Termination Date occur until the Employee experiences a “separation from service” within the meaning of Code Section 409A, and the date which such separation from service takes place shall be the “Termination Date”.
|
|
C.
|
The following text is hereby added as Section 12(k):
Compliance With Code Section 409A.
|
(i)
|
Notwithstanding any provision of this Agreement to the contrary, this Agreement is intended to be exempt from or, in the alternative, comply with Code Section 409A and the interpretive guidance in effect thereunder, including the exceptions for short-term deferrals, separation pay arrangements, reimbursements, and in-kind distributions. The Agreement shall be construed and interpreted in accordance with such intent.
|
||
(ii)
|
In the event that it is determined that any payment, coverage or benefit due or owing to the Employee pursuant to this Agreement is subject to the additional tax imposed by Code Section 409A or any successor provision thereof or any interest or penalties, including interest imposed under Code Section 409(A)(1)(B)(i)(I), incurred by the Employee as a result of the application of such provision, the Corporation agrees to cooperate with the Employee to modify the Agreement, but only (A) to the minimum extent necessary to avoid the application of such tax and (B) to the extent that the Corporation would not, as a result, suffer any adverse consequences.
|
||
(iii)
|
In the event the Employee is a “Specified Employee,” within the meaning of Code Section 409A and Treas. Reg. 1.409A-1(c)(i) (or any similar or successor provisions) as determined in accordance with the Corporation’s policy for determining Specified Employees, cash severance or any other amounts that are nonqualified deferred compensation (within the meaning of Code Section 409A that would otherwise be payable during the six-month period immediately following the Termination Date shall, to the extent required by Code Section 409A, instead be paid on the earlier of (i) the first business day after the date that is six months after the Termination Date or (ii) the Employee’s death.
|
||
(iv)
|
For purposes of this Agreement, all payments of “deferred compensation,” as defined in Code Section 409A, due to the Employee’s “termination of employment” shall be payable upon the Executive’s “separation from service,” as defined by Treas. Reg. §1.409A-1(h).
|
Sincerely,
BERRY PLASTICS CORPORATION
|
||
/s/ Edward Stratton
|
|
|
Edward Stratton
Executive Vice President, Human Resources
|
/s/ Curtis Begle
|
|
Printed Name: Curtis Begle
Date: 12-16-11
|
/s/ Jonathan D. Rich | |||
Jonathan D. Rich | |||
Chairman and Chief Executive Officer | |||
/s/ Mark W. Miles | |||
Mark W. Miles | |||
Chief Financial Officer | |||
|
|
/s/ Jonathan D. Rich | |
Jonathan D. Rich | |||
Chairman and Chief Executive Officer | |||
|
|
/s/ Mark W. Miles | |
Mark W. Miles | |||
Chief Financial Officer | |||
Financial Instruments And Fair Value Measurements (Narrative) (Details) (USD $)
|
0 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Jun. 02, 2013
|
Dec. 28, 2013
2010 Swaps [Member]
item
|
Dec. 28, 2013
2010 Swaps Part One [Member]
|
Dec. 28, 2013
2010 Swaps Part Two [Member]
|
Dec. 28, 2013
2013 Swaps [Member]
|
|
Line of Credit Facility [Line Items] | |||||
Number of interest rate swaps | 2 | ||||
Variable rate term loan, amount outstanding | $ 1,000,000,000 | $ 1,000,000,000 | |||
Notional amount of swap agreement | 500,000,000 | 500,000,000 | |||
Derivative variable interest rate | 1.00% | ||||
Term of fixed interest rate | 3 years | 3 years | 3 years | ||
Derivative instrument fixed interest rate | 0.8925% | 1.0235% | 2.355% | ||
Derivative maturity date | Nov. 01, 2013 | ||||
Derivative settlement amount | $ 16,000,000 |
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