XML 54 R22.htm IDEA: XBRL DOCUMENT v3.4.0.3
Guarantor And Non-Guarantor Financial Information
 12 Months Ended
Sep. 26, 2015
Guarantor And Non-Guarantor Financial Information [Abstract]  
Guarantor And Non-Guarantor Financial Information

15. Guarantor and Non-Guarantor Financial Information  

 

Berry Plastics Corporation (“Issuer”) has notes outstanding which are fully, jointly, severally, and unconditionally guaranteed by substantially all of Berry’s domestic subsidiaries. Separate narrative information or financial statements of the guarantor subsidiaries have not been included because they are 100% owned by the parent company and the guarantor subsidiaries unconditionally guarantee such debt on a joint and several basis. A guarantee of a guarantor of the securities will terminate upon the following customary circumstances: the sale of the capital stock of such guarantor if such sale complies with the indenture, the designation of such guarantor as an unrestricted subsidiary, the defeasance or discharge of the indenture, as a result of the holders of certain other indebtedness foreclosing on a pledge of the shares of a guarantor subsidiary or if such guarantor no longer guarantees certain other indebtedness of the Issuer. The guarantees are also limited as necessary to prevent them from constituting a fraudulent conveyance under applicable law and guarantees guaranteeing subordinated debt are subordinated to certain other of the Company’s debts. Presented below is condensed consolidating financial information for the parent, issuer, guarantor subsidiaries and non-guarantor subsidiaries. Our Issuer and guarantor financial information includes all of our domestic operating subsidiaries, our non-guarantor subsidiaries include our foreign subsidiaries, and BP Parallel, LLC. BP Parallel, LLC is the entity that we established to buyback debt securities of Berry Plastics Group, Inc. and Berry Plastics Corporation. Berry Plastics Group, Inc. uses the equity method to account for its ownership in Berry Plastics Corporation in the Condensed Consolidating Supplemental Financial Statements. Berry Plastics Corporation uses the equity method to account for its ownership in the guarantor and non-guarantor subsidiaries. All consolidating entries are included in the eliminations column along with the elimination of intercompany balances.

 

Condensed Supplemental Consolidated Statements of Operations

​ ​ ​
Fiscal 2015
 ​
​ ​ ​
Parent
 ​ ​
Issuer
 ​ ​
Guarantor 
Subsidiaries
 ​ ​
Non- 
Guarantor 
Subsidiaries
 ​ ​
Eliminations
 ​ ​
Total
 ​
Net sales
 ​ ​ ​ $ — ​ ​ ​ ​ $ 622 ​ ​ ​ ​ $ 3,807 ​ ​ ​ ​ $ 452 ​ ​ ​ ​ $ — ​ ​ ​ ​ $ 4,881 ​ ​
Cost of goods sold
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 526 ​ ​ ​ ​ ​ 3,128 ​ ​ ​ ​ ​ 358 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 4,012 ​ ​
Selling, general and administrative
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 64 ​ ​ ​ ​ ​ 244 ​ ​ ​ ​ ​ 49 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 357 ​ ​
Amortization of intangibles
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 8 ​ ​ ​ ​ ​ 75 ​ ​ ​ ​ ​ 8 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 91 ​ ​
Restructuring and impairment charges
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 13 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 13 ​ ​
Operating income
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 24 ​ ​ ​ ​ ​ 347 ​ ​ ​ ​ ​ 37 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 408 ​ ​
Debt extinguishment
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 94 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 94 ​ ​
Other expense (income), net
 ​ ​ ​ ​ (3) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 3 ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 1 ​ ​
Interest expense, net
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 25 ​ ​ ​ ​ ​ 148 ​ ​ ​ ​ ​ 18 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 191 ​ ​
Equity in net income of subsidiaries
 ​ ​ ​ ​ (119) ​ ​ ​ ​ ​ (210) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 329 ​ ​ ​ ​ ​ — ​ ​
Income (loss) before income taxes
 ​ ​ ​ ​ 122 ​ ​ ​ ​ ​ 115 ​ ​ ​ ​ ​ 196 ​ ​ ​ ​ ​ 18 ​ ​ ​ ​ ​ (329) ​ ​ ​ ​ ​ 122 ​ ​
Income tax expense (benefit)
 ​ ​ ​ ​ 36 ​ ​ ​ ​ ​ 25 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 4 ​ ​ ​ ​ ​ (29) ​ ​ ​ ​ ​ 36 ​ ​
Consolidated net income (loss)
 ​ ​ ​ ​ 86 ​ ​ ​ ​ ​ 90 ​ ​ ​ ​ ​ 196 ​ ​ ​ ​ ​ 14 ​ ​ ​ ​ ​ (300) ​ ​ ​ ​ ​ 86 ​ ​
Net income (loss) attributable to non-controlling interests
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Net income (loss) attributable to the Company
 ​ ​ ​ $ 86 ​ ​ ​ ​ $ 90 ​ ​ ​ ​ $ 196 ​ ​ ​ ​ $ 14 ​ ​ ​ ​ $ (300) ​ ​ ​ ​ $ 86 ​ ​
Currency translation
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (45) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (45) ​ ​
Interest rate hedges
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ (33) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (33) ​ ​
Defined benefit pension and retiree benefit plans
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ (16) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (16) ​ ​
Provision for income taxes related to other comprehensive income items
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 18 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 18 ​ ​
Comprehensive income (loss)
 ​ ​ ​ $ 86 ​ ​ ​ ​ $ 59 ​ ​ ​ ​ $ 196 ​ ​ ​ ​ $ (31) ​ ​ ​ ​ $ (300) ​ ​ ​ ​ $ 10 ​ ​
​

 

 

    Fiscal 2014  
    Parent     Issuer     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Total  
Net sales   $ -     $ 638     $ 3,904     $ 416     $ -     $ 4,958  
Cost of goods sold     -       557       3,284       349       -       4,190  
Selling, general and administrative     -       52       232       36       -       320  
Amortization of intangibles     -       10       84       8       -       102  
Restructuring and impairment charges     -       -       30       -       -       30  
Operating income     -       19       274       23       -       316  
Debt extinguishment     -       35       -       -       -       35  
Other income, net     (3 )     -       (4 )     -       -       (7 )
Interest expense, net     34       27       176       (97 )     81       221  
Equity in net income of subsidiaries     (98 )     (218 )     -       -       316       -  
Income (loss) before income taxes     67       175       102       120       (397 )     67  
Income tax expense (benefit)     4       44       -       5       (49 )     4  
Consolidated net income (loss)     63       131       102       115       (348 )     63  
Net income (loss) attributable to non-controlling interests     1       -       -       -       -       1  
Net income (loss) attributable to the Company   $ 62     $ 131     $ 102     $ 115     $ (348 )   $ 62  
Currency translation     -       -       -       (16 )     -       (16 )
Interest rate hedges     -       (3 )     -       -       -       (3 )
Defined benefit pension and retiree benefit plans     -       (11 )     -       -       -       (11 )
Provision for income taxes related to other comprehensive income items     -       5       -       -       -       5  
Comprehensive  income (loss)   $ 62     $ 122     $ 102     $ 99     $ (348 )   $ 37  

 

    Fiscal 2013  
    Parent     Issuer     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Total  
Net sales   $ -     $ 571     $ 3,706     $ 370     $ -     $ 4,647  
Cost of sales     -       506       3,021       308       -       3,835  
Selling, general and administrative expenses     -       58       314       40       -       412  
Restructuring and impairment charges, net     -       1       13       -       -       14  
Operating income (loss)     -       6       358       22       -       386  
Other income     -       56       1       -       -       57  
Interest expense, net     47       24       201       (120 )     92       244  
Equity in net income of subsidiaries     (132 )     (297 )     -       -       429       -  
Net income (loss) before income taxes     85       223       156       142       (521 )     85  
Income tax expense (benefit)     28       80       -       2       (82 )     28  
Net income (loss)   $ 57     $ 143     $ 156     $ 140     $ (439 )   $ 57  
Currency translation     -       -       -       (5 )     -       (5 )
Interest rate hedges     -       20       -       -       -       20  
Defined benefit pension and retiree benefit plans     -       34       -       -       -       34  
Provision for income taxes related to other comprehensive income items     -       (20 )     -       -       -       (20 )
Comprehensive  income (loss)   $ 57     $ 177     $ 156     $ 135     $ (439 )   $ 86  

 

 

Condensed Supplemental Consolidated Balance Sheet 
As of fiscal year end 2015

 

    Parent     Issuer     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Total  
Assets                                                
Current assets:                                                
Cash and cash equivalents   $ -     $ 163     $ -     $ 65     $ -     $ 228  
Accounts receivable, net     -       23       337       74       -       434  
Intercompany receivable     329       2,963       -       83       (3,375 )     -  
Inventories     -       49       425       48       -       522  
Deferred income taxes     162       -       -       -       -       162  
Prepaid expenses and other current     -       22       5       10       -       37  
Total current assets     491       3,220       767       280       (3,375 )     1,383  
Property, plant and equipment, net     -       79       1,111       104       -       1,294  
Intangible assets, net     -       97       2,151       101       -       2,349  
Investment in subsidiaries     75       1,456       -       -       (1,531 )     -  
Other assets     -       -       1       1       -       2  
Total assets   $ 566     $ 4,852     $ 4,030     $ 486     $ (4,906 )   $ 5,028  
Liabilities and equity                                                
Current liabilities:                                                
Accounts payable   $ -     $ 28     $ 245     $ 57     $ -     $ 330  
Accrued expenses and other current liabilities     57       140       121       20       -       338  
Intercompany payable     -       -       3,375       -       (3,375 )     -  
Current portion of long-term debt     -       37       -       -       -       37  
Total current liabilities     57       205       3,741       77       (3,375 )     705  
Long-term debt, less current portion     -       3,647       -       1       -       3,648  
Deferred income taxes     387       -       -       -       -       387  
Other long-term liabilities     175       122       39       5       -       341  
Total long-term liabilities     562       3,769       39       6       -       4,376  
Total liabilities     619       3,974       3,780       83       (3,375 )     5,081  
                                                 
Redeemable non-controlling interests     12       -       -       -       -       12  
Other equity (deficit)     (65 )     878       250       403       (1,531 )     (65 )
Total equity (deficit)     (65 )     878       250       403       (1,531 )     (65 )
Total liabilities and equity (deficit)   $ 566     $ 4,852     $ 4,030     $ 486     $ (4,906 )   $ 5,028  

 

 

Condensed Supplemental Consolidated Balance Sheet 
As of fiscal year end 2014

 

    Parent     Issuer     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Total  
Assets                                                
Current assets:                                                
Cash and cash equivalents   $ -     $ 70     $ 15     $ 44     $ -     $ 129  
Accounts receivable, net of allowance     -       35       377       79       -       491  
Intercompany receivable     319       3,343       -       87       (3,749 )     -  
Inventories     -       51       496       57       -       604  
Deferred income taxes     166       -       -       -       -       166  
Prepaid expenses and other current     -       15       13       14       -       42  
Total current assets     485       3,514       901       281       (3,749 )     1,432  
Property, plant and equipment, net     -       84       1,162       118       -       1,364  
Intangible assets, net     -       104       2,226       125       -       2,455  
Investment in subsidiaries     69       1,237       -       -       (1,306 )     -  
Other assets     -       -       1       -       -       1  
Total assets   $ 554     $ 4,939     $ 4,290     $ 524     $ (5,055 )   $ 5,252  
Liabilities and equity                                                
Current liabilities:                                                
Accounts payable   $ -     $ 31     $ 303     $ 61     $ -     $ 395  
Accrued and other current liabilities     35       127       132       20       -       314  
Intercompany payable     -       -       3,749       -       (3,749 )     -  
Long-term debt-current portion     -       54       -       4       -       58  
Total current liabilities     35       212       4,184       85       (3,749 )     767  
Long-term debt, less current portion     -       3,842       -       2       -       3,844  
Deferred tax liabilities     386       -       -       -       -       386  
Other long-term liabilities     234       76       42       4       -       356  
Total long-term liabilities     620       3,918       42       6       -       4,586  
Total liabilities     655       4,130       4,226       91       (3,749 )     5,353  
                                                 
Redeemable non-controlling interests     13       -       -       -       -       13  
Other equity (deficit)     (114 )     809       64       433       (1,306 )     (114 )
Total equity (deficit)     (114 )     809       64       433       (1,306 )     (114 )
Total liabilities and equity (deficit)   $ 554     $ 4,939     $ 4,290     $ 524     $ (5,055 )   $ 5,252  

 

 

Condensed Supplemental Consolidated Statements of Cash Flows

 

    Fiscal 2015  
    Parent     Issuer     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Total  
Cash Flow from Operating Activities   $ -     $ 60     $ 542     $ 34     $ 1     $ 637  
                                                 
Cash Flow from Investing Activities                                                
Additions to  property, plant, and equipment     -       (13 )     (164 )     (3 )     -       (180 )
Proceeds from sale of assets     -       -       18       -       -       18  
Investment in Parent     -       -       -       -       -       -  
(Contributions) distributions to/from subsidiaries     (18 )     18       -       -       -       -  
Intercompany advances (repayments)     -       368       -       -       (368 )     -  
Acquisition of business, net of cash acquired     -       -       (3 )     -       -       (3 )
Net cash from investing activities     (18 )     373       (149 )     (3 )     (368 )     (165 )
Cash Flow from Financing Activities                                                
Proceeds from long-term borrowings     -       693       -       -       -       693  
Payment of tax receivable agreement     (39 )     -       -       -       -       (39 )
Proceed from issuance of common stock     18       -       -       -       -       18  
Repayment of note receivable     -       -       -       -       -       -  
Repayment of long-term borrowings     -       (947 )     -       (4 )     -       (951 )
Changes in intercompany balances     39       -       (408 )     2       367       -  
Contribution from Parent     -       -       -       -       -       -  
Debt financing costs     -       (86 )     -       -       -       (86 )
Net cash from financing activities     18       (340 )     (408 )     (2 )     367       (365 )
Effect of currency translation on cash     -       -       -       (8 )     -       (8 )
Net change in cash and cash equivalents     -       93       (15 )     21       -       99  
Cash and cash equivalents at beginning of period     -       70       15       44       -       129  
Cash and cash equivalents at end of period   $ -     $ 163     $ -     $ 65     $ -     $ 228  

 

    Fiscal 2014  
    Parent     Issuer     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Total  
Cash Flow from Operating Activities   $ -     $ 27     $ 473     $ 30     $ -     $ 530  
                                                 
Cash Flow from Investing Activities                                                
Additions to  property, plant, and equipment     -       (6 )     (200 )     (9 )     -       (215 )
Proceeds from sale of assets     -       -       19       -       -       19  
Investment in Parent     -       -       -       -       -       -  
(Contributions) distributions to/from subsidiaries     723       (2 )     -       721       (1,442 )     -  
Intercompany advances (repayments)     -       20       -       -       (20 )     -  
Investment in Issuer debt securities     -       -       -       -       -       -  
Acquisition of business, net of cash acquired     -       -       (136 )     (90 )     -       (226 )
Net cash from investing activities     723       12       (317 )     622       (1,462 )     (422 )
Cash Flow from Financing Activities                                                
Proceeds from long-term borrowings     -       1,627       -       -       -       1,627  
Proceeds from initial public offering     -       -       -       -       -       -  
Payment of tax receivable agreement     (32 )     -       -       -       -       (32 )
Proceed from issuance of common stock     17       -       -       -       -       17  
Repayment of note receivable     -       -       -       -       -       -  
Repayment of long-term borrowings     (740 )     (1,668 )     -       -       721       (1,687 )
Changes in intercompany balances     32       -       (141 )     89       20       -  
Contribution from Parent     -       -       -       (721 )     721       -  
Debt financing costs     -       (44 )     -       -       -       (44 )
Net cash from financing activities     (723 )     (85 )     (141 )     (632 )     1,462       (119 )
Effect of currency translation on cash     -       -       -       (2 )     -       (2 )
Net change in cash and cash equivalents     -       (46 )     15       18       -       (13 )
Cash and cash equivalents at beginning of period     -       116       -       26       -       142  
Cash and cash equivalents at end of period   $ -     $ 70     $ 15     $ 44     $ -     $ 129  

 

 

    Fiscal 2013  
    Parent     Issuer     Guarantor
Subsidiaries		     Non-
Guarantor
Subsidiaries		     Eliminations     Total  
Cash Flow from Operating Activities   $ -     $ 11     $ 417     $ 36     $ -     $ 464  
                                                 
Cash Flow from Investing Activities                                                
Additions to  property, plant, and equipment     -       (7 )     (218 )     (14 )     -       (239 )
Proceeds from disposal of assets     -       1       17       -       -       18  
Investment in Parent     -       -       -       (21 )     21       -  
(Contributions) distributions to/from subsidiaries     (462 )     441       -       -       21       -  
Intercompany advances (repayments)     -       210       -       -       (210 )     -  
Investment in Issuer debt securities     -       -       -       -       -       -  
Acquisition of business net of cash acquired     -       -       (24 )     -       -       (24 )
Net cash from investing activities     (462 )     645       (225 )     (35 )     (168 )     (245 )
                                                 
Cash Flow from Financing Activities                                                
Proceeds from long-term debt     -       1,391       -       -       -       1,391  
IPO proceeds     438       -       -       -       -       438  
Payment of TRA     (5 )     (5 )     -       -       5       (5 )
Proceed from issuance of common stock     27       -       -       -       -       27  
Repayment of note receivable     2       2       -       -       (2 )     2  
Repayment of long-term debt     -       (1,955 )     -       (2 )     (21 )     (1,978 )
Changes in intercompany balances     -       -       (192 )     (15 )     207       -  
                                                 
Contribution from Parent     -       -       -       21       (21 )     -  
Deferred financing costs     -       (39 )     -       -       -       (39 )
Net cash from financing activities     462       (606 )     (192 )     4       168       (164 )
Net change in cash and cash equivalents     -       50       -       5       -       55  
Cash and cash equivalents at beginning of period     -       66       -       21       -       87  
Cash and cash equivalents at end of period   $ -     $ 116     $ -     $ 26     $ -     $ 142