Subsidiary Guarantors (Tables)

12 Months Ended

Jan. 03, 2015

Dec. 28, 2013

Dec. 29, 2012

Subsidiary Guarantors [Abstract]

Condensed consolidating balance sheet

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 3, 2015

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	5,933		$	—	$	—		$	30		$	—		$	5,963
Accounts receivable, net	98,945			—		6,411			19,765			—			125,121
Intercompany receivables	356,421			—		61,740			1,794			(419,955		)	—
Inventories	100,487			—		10,969			34,076			—			145,532
Income taxes receivable	—			—		144			—			—			144
Deferred income taxes	487			—		1,952			—			—			2,439
Prepaid expenses and other current assets	13,422			—		996			1,441			—			15,859
Total current assets	575,695			—		82,212			57,106			(419,955		)	295,058
Property, plant and equipment, net	62,977			—		1,474			29,449			—			93,900
Goodwill	203,841			—		16,713			96,703			—			317,257
Other intangible assets, net	305,127			—		33,084			99,089			—			437,300
Intercompany receivable	—			834,004		—			—			(834,004		)	—
Other assets	17,246			—		45			1,371			—			18,662
Total assets	$	1,164,886		$	834,004	$	133,528		$	283,718		$	(1,253,959	)	$	1,162,177
LIABILITIES AND MEMBER'S DEFICIT
Current liabilities:
Accounts payable	$	67,160		$	—	$	6,679		$	20,929		$	—		$	94,768
Intercompany payables	1,794			—		—			418,161			(419,955		)	—
Accrued liabilities	70,439			—		4,683			6,612			—			81,734
Deferred income taxes	—			—		—			1,292			—			1,292
Income taxes payable	46			—		—			1,736			—			1,782
Total current liabilities	139,439			—		11,362			448,730			(419,955		)	179,576
Deferred income taxes	51,012			—		13,295			24,023			—			88,330
Other liabilities	84,048			—		22,395			22,573			—			129,016
Deficit in subsidiaries	128,532			—		215,008			—			(343,540		)	—
Long-term debt	900,004			834,004		—			3,400			(834,004		)	903,404
Member’s deficit	(138,149		)	—		(128,532		)	(215,008		)	343,540			(138,149		)
Total liabilities and member’s deficit	$	1,164,886		$	834,004	$	133,528		$	283,718		$	(1,253,959	)	$	1,162,177

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 28, 2013

(In thousands)

	Company		Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	7,566	$	—	$	—		$	13,249		$	—		$	20,815
Accounts receivable, net	96,265		—		9,858			19,140			—			125,263
Intercompany receivables	374,444		—		57,711			1,794			(433,949		)	—
Inventories	93,175		—		10,117			30,177			—			133,469
Income taxes receivable	—		—		792			—			—			792
Deferred income taxes	2,451		—		2,234			—			—			4,685
Prepaid expenses and other current assets	8,239		—		891			1,712			—			10,842
Total current assets	582,140		—		81,603			66,072			(433,949		)	295,866
Property, plant and equipment, net	65,348		—		1,574			34,023			—			100,945
Goodwill	300,642		—		24,650			146,499			—			471,791
Other intangible assets, net	379,740		—		44,654			138,830			—			563,224
Intercompany receivable	—		835,230		—			—			(835,230		)	—
Other assets	22,926		—		—			1,867			—			24,793
Total assets	$	1,350,796	$	835,230	$	152,481		$	387,291		$	(1,269,179	)	$	1,456,619
LIABILITIES AND MEMBER'S EQUITY
Current liabilities:
Accounts payable	$	64,272	$	—	$	9,531		$	23,171		$	—		$	96,974
Intercompany payables	1,794		—		—			432,155			(433,949		)	—
Accrued liabilities	63,534		—		6,392			8,256			—			78,182
Deferred income taxes	—		—		—			2,441			—			2,441
Income taxes payable	452		—		—			1,687			—			2,139
Total current liabilities	130,052		—		15,923			467,710			(433,949		)	179,736
Deferred income taxes	73,862		—		16,620			35,722			—			126,204
Other liabilities	76,668		—		20,588			20,403			—			117,659
Deficit in subsidiaries	37,194		—		136,544			—			(173,738		)	—
Long-term debt	835,230		835,230		—			—			(835,230		)	835,230
Member’s equity	197,790		—		(37,194		)	(136,544		)	173,738			197,790
Total liabilities and member’s equity	$	1,350,796	$	835,230	$	152,481		$	387,291		$	(1,269,179	)	$	1,456,619

Condensed consolidating statements of operations

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Year Ended January 3, 2015

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	933,837		$	—	$	155,953		$	276,822		$	(179,639	)	$	1,186,973
Cost of sales	758,858			—		143,315			220,885			(179,639		)	943,419
Gross profit	174,979			—		12,638			55,937			—			243,554
Selling, general and administrative expenses	198,967			—		4,678			43,638			—			247,283
Impairment of goodwill	96,801			—		8,850			38,508			—			144,159
Impairment of other intangible assets	54,600			—		11,721			23,366			—			89,687
Loss from operations	(175,389		)	—		(12,611		)	(49,575		)	—			(237,575		)
Interest expense, net	80,991			—		—			1,536			—			82,527
Foreign currency loss	—			—		—			788			—			788
Loss before income taxes	(256,380		)	—		(12,611		)	(51,899		)	—			(320,890		)
Income tax benefit	(23,340		)	—		(587		)	(3,274		)	—			(27,201		)
Loss before equity loss from subsidiaries	(233,040		)	—		(12,024		)	(48,625		)	—			(293,689		)
Equity loss from subsidiaries	(60,649		)	—		(48,625		)	—			109,274			—
Net loss	$	(293,689	)	$	—	$	(60,649	)	$	(48,625	)	$	109,274		$	(293,689	)
Other comprehensive loss:
Pension and other postretirement benefit adjustments, net of tax	(20,268		)	—		(8,252		)	(5,889		)	14,141			(20,268		)
Foreign currency translation adjustments, net of tax	(22,439		)	—		(22,439		)	(22,439		)	44,878			(22,439		)
Total comprehensive loss	$	(336,396	)	$	—	$	(91,340	)	$	(76,953	)	$	168,293		$	(336,396	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Year Ended December 28, 2013

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	900,422		$	—	$	166,302		$	263,604		$	(160,730	)	$	1,169,598
Cost of sales	687,015			—		150,647			210,866			(160,730		)	887,798
Gross profit	213,407			—		15,655			52,738			—			281,800
Selling, general and administrative expenses	183,250			—		5,281			43,750			—			232,281
Income from operations	30,157			—		10,374			8,988			—			49,519
Interest expense, net	77,681			—		—			2,070			—			79,751
Foreign currency loss	—			—		—			754			—			754
(Loss) income before income taxes	(47,524		)	—		10,374			6,164			—			(30,986		)
Income tax (benefit) expense	(1,882		)	—		1,668			2,721			—			2,507
(Loss) income before equity income from subsidiaries	(45,642		)	—		8,706			3,443			—			(33,493		)
Equity income from subsidiaries	12,149			—		3,443			—			(15,592		)	—
Net (loss) income	$	(33,493	)	$	—	$	12,149		$	3,443		$	(15,592	)	$	(33,493	)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	19,774			—		9,666			7,594			(17,260		)	19,774
Foreign currency translation adjustments, net of tax	(20,443		)	—		(20,443		)	(20,443		)	40,886			(20,443		)
Total comprehensive (loss) income	$	(34,162	)	$	—	$	1,372		$	(9,406	)	$	8,034		$	(34,162	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Year Ended December 29, 2012

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	861,092		$	—	$	169,610		$	279,464		$	(167,645	)	$	1,142,521
Cost of sales	649,672			—		155,262			222,328			(167,645		)	859,617
Gross profit	211,420			—		14,348			57,136			—			282,904
Selling, general and administrative expenses	184,840			—		9,922			45,265			—			240,027
Income from operations	26,580			—		4,426			11,871			—			42,877
Interest expense, net	73,761			—		—			1,759			—			75,520
Foreign currency loss	—			—		—			119			—			119
(Loss) income before income taxes	(47,181		)	—		4,426			9,993			—			(32,762		)
Income tax (benefit) expense	(9,828		)	—		12,120			3,313			—			5,605
(Loss) income before equity (loss) income from subsidiaries	(37,353		)	—		(7,694		)	6,680			—			(38,367		)
Equity (loss) income from subsidiaries	(1,014		)	—		6,680			—			(5,666		)	—
Net (loss) income	$	(38,367	)	$	—	$	(1,014	)	$	6,680		$	(5,666	)	$	(38,367	)
Other comprehensive (loss) income:
Pension and other postretirement benefit adjustments, net of tax	(9,446		)	—		(6,481		)	(5,909		)	12,390			(9,446		)
Foreign currency translation adjustments, net of tax	8,228			—		8,228			8,228			(16,456		)	8,228
Total comprehensive (loss) income	$	(39,585	)	$	—	$	733		$	8,999		$	(9,732	)	$	(39,585	)

Condensed consolidating statements of cash flows

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Year Ended January 3, 2015

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(77,627	)	$	—	$	15,075		$	(8,413	)	$	—		$	(70,965	)
INVESTING ACTIVITIES
Capital expenditures	(11,321		)	—		(276		)	(1,255		)	—			(12,852		)
Proceeds from the sale of assets	16			—		—			3			—			19
Payments on loans to affiliates	—			—		(14,799		)	—			14,799			—
Receipts on loans to affiliates	6,500			—		—			—			(6,500		)	—
Net cash used in investing activities	(4,805		)	—		(15,075		)	(1,252		)	8,299			(12,833		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	156,700			—		—			83,522			—			240,222
Payments under ABL facilities	(90,700		)	—		—			(80,110		)	—			(170,810		)
Borrowings from affiliates	14,799			—		—			—			(14,799		)	—
Repayments to affiliates	—			—		—			(6,500		)	6,500			—
Net cash provided by (used in) financing activities	80,799			—		—			(3,088		)	(8,299		)	69,412
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(466		)	—			(466		)
Decrease in cash and cash equivalents	(1,633		)	—		—			(13,219		)	—			(14,852		)
Cash and cash equivalents at beginning of year	7,566			—		—			13,249			—			20,815
Cash and cash equivalents at end of year	$	5,933		$	—	$	—		$	30		$	—		$	5,963

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Year Ended December 28, 2013

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	2,063		$	—	$	(14,211	)	$	12,401		$	—		$	253
INVESTING ACTIVITIES
Capital expenditures	(10,926		)	—		(56		)	(720		)	—			(11,702		)
Proceeds from the sale of assets	56			—		—			4			—			60
Supply Center acquisition	(348		)	—		—			—			—			(348		)
Payments on loans to affiliates	(20,000		)	—		—			—			20,000			—
Receipts on loans to affiliates	11,500			—		14,267			—			(25,767		)	—
Net cash (used in) provided by investing activities	(19,718		)	—		14,211			(716		)	(5,767		)	(11,990		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	99,891			—		—			48,970			—			148,861
Payments under ABL facilities	(169,391		)	—		—			(57,470		)	—			(226,861		)
Borrowings from affiliates	—			—		—			20,000			(20,000		)	—
Repayments to affiliates	(14,267		)	—		—			(11,500		)	25,767			—
Equity contribution from parent	742			—		—			—			—			742
Issuance of Senior Secured Notes	106,000			—		—			—			—			106,000
Financing costs	(5,074		)	—		—			(475		)	—			(5,549		)
Net cash provided by (used in) financing activities	17,901			—		—			(475		)	5,767			23,193
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(235		)	—			(235		)
Increase in cash and cash equivalents	246			—		—			10,975			—			11,221
Cash and cash equivalents at beginning of year	7,320			—		—			2,274			—			9,594
Cash and cash equivalents at end of year	$	7,566		$	—	$	—		$	13,249		$	—		$	20,815

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Year Ended December 29, 2012

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(5,869	)	$	—	$	(9,514	)	$	14,794		$	—		$	(589	)
INVESTING ACTIVITIES
Capital expenditures	(4,335		)	—		(68		)	(968		)	—			(5,371		)
Proceeds from sale of assets	90			—		1			3			—			94
Payments on loans to affiliates	—			—		—			(18,000		)	18,000			—
Receipts on loans to affiliates	—			—		6,792			53,000			(59,792		)	—
Net cash (used in) provided by investing activities	(4,245		)	—		6,725			34,035			(41,792		)	(5,277		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	116,100			—		—			92,371			—			208,471
Payments under ABL facilities	(117,600		)	—		—			(86,571		)	—			(204,171		)
Borrowings from affiliates	18,000			—		—			—			(18,000		)	—
Repayments to affiliates	(6,792		)	—		(53,000		)	—			59,792			—
Dividends paid	—			—		55,789			(55,789		)	—			—
Equity contribution from parent	80			—		—			—			—			80
Financing costs	(209		)	—		—			(16		)	—			(225		)
Net cash provided by (used in) financing activities	9,579			—		2,789			(50,005		)	41,792			4,155
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(69		)	—			(69		)
Decrease in cash and cash equivalents	(535		)	—		—			(1,245		)	—			(1,780		)
Cash and cash equivalents at beginning of year	7,855			—		—			3,519			—			11,374
Cash and cash equivalents at end of year	$	7,320		$	—	$	—		$	2,274		$	—		$	9,594

Revised Schedule of Condensed Statement of Cash Flows

The condensed consolidating statement of cash flows for the years ended December 28, 2013 and December 29, 2012 have been revised to present changes in receivable from or payable to an affiliate, which resulted from deposits in and withdrawals from the Company’s cash account by its subsidiary, under a centralized cash management arrangement, and loan payments and receipts between the Company’s subsidiaries within investing and financing activities. Changes in receivable from or payable to an affiliate related to trade transactions are presented within operating activities. The Company previously reported all changes in receivable from and payable to an affiliate as cash flows in financing activities. The effect is summarized as follows (in thousands):

	Year Ended December 28, 2013
	Company (As Previously Reported)			Company (As Corrected)			Subsidiary Guarantors (As Previously Reported)			Subsidiary Guarantors (As Corrected)			Non-Guarantor Subsidiary (As Previously Reported)			Non-Guarantor Subsidiary (As Corrected)			Eliminations (As Previously Reported)		Eliminations (As Corrected)
Net cash (used in) provided by operating activities	$	(12,204	)	$	2,063		$	56		$	(14,211	)	$	12,401		$	12,401		$	—	$	—
INVESTING ACTIVITIES
Payments on loans to affiliates	—			(20,000		)	—			—			—			—			—		20,000
Receipts on loans to affiliates	—			11,500			—			14,267			—			—			—		(25,767		)
Net cash (used in) provided by investing activities	(11,218		)	(19,718		)	(56		)	14,211			(716		)	(716		)	—		(5,767		)
FINANCING ACTIVITIES
Borrowings from affiliates	—			—			—			—			—			20,000			—		(20,000		)
Repayments to affiliates	—			(14,267		)	—			—			—			(11,500		)	—		25,767
Intercompany transactions	(8,500		)	—			—			—			8,500			—			—		—
Net cash provided by (used in) financing activities	23,668			17,901			—			—			(475		)	(475		)	—		5,767

	Year Ended December 29, 2012
	Company (As Previously Reported)			Company (As Corrected)			Subsidiary Guarantors (As Previously Reported)			Subsidiary Guarantors (As Corrected)			Non-Guarantor Subsidiary (As Previously Reported)			Non-Guarantor Subsidiary (As Corrected)			Eliminations (As Previously Reported)		Eliminations (As Corrected)
Net cash (used in) provided by operating activities	$	(7,641	)	$	(5,869	)	$	2,724		$	(9,514	)	$	4,328		$	14,794		$	—	$	—
INVESTING ACTIVITIES
Payments on loans to affiliates	—			—			—			—			—			(18,000		)	—		18,000
Receipts on loans to affiliates	—			—			—			6,792			—			53,000			—		(59,792		)
Net cash (used in) provided by investing activities	(4,245		)	(4,245		)	(67		)	6,725			(965		)	34,035			—		(41,792		)
FINANCING ACTIVITIES
Borrowings from affiliates	—			18,000			—			—			—			—			—		(18,000		)
Repayments to affiliates	—			(6,792		)	—			(53,000		)	—			—			—		59,792
Intercompany transactions	12,980			—			(58,446		)	—			45,466			—			—		—
Net cash provided by (used in) financing activities	11,351			9,579			(2,657		)	2,789			(4,539		)	(50,005		)	—		41,792