Subsidiary Guarantors (Tables)

9 Months Ended

Oct. 03, 2015

Sep. 27, 2014

Condensed Financial Statements, Captions [Line Items]

Condensed consolidating balance sheet

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

October 3, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	7,294		$	—	$	—		$	647		$	—		$	7,941
Accounts receivable, net	121,555			—		10,036			31,484			—			163,075
Intercompany receivables	340,533			—		59,619			1,794			(401,946		)	—
Inventories	111,582			—		7,185			36,425			—			155,192
Income taxes receivable	179			—		54			—			—			233
Deferred income taxes	487			—		1,952			—			—			2,439
Prepaid expenses and other current assets	10,012			—		716			1,146			—			11,874
Total current assets	591,642			—		79,562			71,496			(401,946		)	340,754
Property, plant and equipment, net	67,079			—		1,297			25,594			—			93,970
Goodwill	203,841			—		16,713			86,651			—			307,205
Other intangible assets, net	290,118			—		32,746			85,489			—			408,353
Intercompany receivable	—			833,025		—			—			(833,025		)	—
Other assets	13,556			—		6			1,220			—			14,782
Total assets	$	1,166,236		$	833,025	$	130,324		$	270,450		$	(1,234,971	)	$	1,165,064
LIABILITIES AND MEMBER'S DEFICIT
Current liabilities:
Accounts payable	$	87,840		$	—	$	8,114		$	31,915		$	—		$	127,869
Intercompany payables	1,794			—		—			400,152			(401,946		)	—
Accrued liabilities	91,638			—		5,098			9,078			—			105,814
Deferred income taxes	926			—		—			1,157			—			2,083
Income taxes payable	—			—		—			2,158			—			2,158
Total current liabilities	182,198			—		13,212			444,460			(401,946		)	237,924
Deferred income taxes	51,012			—		13,295			21,575			—			85,882
Other liabilities	80,776			—		22,126			18,695			—			121,597
Deficit in subsidiaries	144,089			—		225,780			—			(369,869		)	—
Long-term debt	916,025			833,025		—			11,500			(833,025		)	927,525
Member’s deficit	(207,864		)	—		(144,089		)	(225,780		)	369,869			(207,864		)
Total liabilities and member’s deficit	$	1,166,236		$	833,025	$	130,324		$	270,450		$	(1,234,971	)	$	1,165,064

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 3, 2015

(Unaudited, 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

Condensed consolidating statements of comprehensive loss

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Quarter Ended October 3, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	267,732		$	—	$	44,388		$	78,243		$	(50,576	)	$	339,787
Cost of sales	207,494			—		41,978			59,187			(50,576		)	258,083
Gross profit	60,238			—		2,410			19,056			—			81,704
Selling, general and administrative expenses	49,447			—		1,759			10,185			—			61,391
Restructuring costs	1,787			—		—			—			—			1,787
Income from operations	9,004			—		651			8,871			—			18,526
Interest expense, net	19,008			—		1,616			184			—			20,808
Foreign currency loss	—			—		—			806			—			806
(Loss) income before income taxes	(10,004		)	—		(965		)	7,881			—			(3,088		)
Income tax expense	20			—		13			2,083			—			2,116
(Loss) income before equity income from subsidiaries	(10,024		)	—		(978		)	5,798			—			(5,204		)
Equity income from subsidiaries	4,820			—		5,798			—			(10,618		)	—
Net (loss) income	(5,204		)	—		4,820			5,798			(10,618		)	(5,204		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	145			—		55			45			(100		)	145
Foreign currency translation adjustments, net of tax	(8,659		)	—		(8,659		)	(8,659		)	17,318			(8,659		)
Total comprehensive loss	$	(13,718	)	$	—	$	(3,784	)	$	(2,816	)	$	6,600		$	(13,718	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Nine Months EndedOctober 3, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	709,642		$	—	$	117,128		$	202,968		$	(138,336	)	$	891,402
Cost of sales	558,120			—		111,785			155,211			(138,336		)	686,780
Gross profit	151,522			—		5,343			47,757			—			204,622
Selling, general and administrative expenses	146,298			—		5,129			30,600			—			182,027
Restructuring costs	1,787			—		—			—			—			1,787
Income from operations	3,437			—		214			17,157			—			20,808
Interest expense, net	57,072			—		4,939			659			—			62,670
Foreign currency loss	—			—		—			1,923			—			1,923
(Loss) income before income taxes	(53,635		)	—		(4,725		)	14,575			—			(43,785		)
Income tax expense	925			—		90			3,864			—			4,879
(Loss) income before equity income from subsidiaries	(54,560		)	—		(4,815		)	10,711			—			(48,664		)
Equity income from subsidiaries	5,896			—		10,711			—			(16,607		)	—
Net (loss) income	(48,664		)	—		5,896			10,711			(16,607		)	(48,664		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	444			—		173			143			(316		)	444
Foreign currency translation adjustments, net of tax	(21,624		)	—		(21,624		)	(21,624		)	43,248			(21,624		)
Total comprehensive loss	$	(69,844	)	$	—	$	(15,555	)	$	(10,770	)	$	26,325		$	(69,844	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Quarter Ended September 27, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	273,512		$	—	$	47,373		$	90,493		$	(57,636	)	$	353,742
Cost of sales	222,454			—		44,273			70,040			(57,636		)	279,131
Gross profit	51,058			—		3,100			20,453			—			74,611
Selling, general and administrative expenses	50,159			—		1,053			11,042			—			62,254
Impairment of goodwill	99,524			—		9,181			39,799			—			148,504
Impairment of other intangible assets	54,600			—		11,721			23,366			—			89,687
Loss from operations	(153,225		)	—		(18,855		)	(53,754		)	—			(225,834		)
Interest expense, net	20,328			—		—			421			—			20,749
Foreign currency loss	—			—		—			220			—			220
Loss before income taxes	(173,553		)	—		(18,855		)	(54,395		)	—			(246,803		)
Income tax benefit	(23,304		)	—		(1,286		)	(3,037		)	—			(27,627		)
Loss before equity loss from subsidiaries	(150,249		)	—		(17,569		)	(51,358		)	—			(219,176		)
Equity loss from subsidiaries	(68,927		)	—		(51,359		)	—			120,286			—
Net loss	(219,176		)	—		(68,928		)	(51,358		)	120,286			(219,176		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	3			—		11			13			(24		)	3
Foreign currency translation adjustments, net of tax	(11,232		)	—		(11,232		)	(11,232		)	22,464			(11,232		)
Total comprehensive loss	$	(230,405	)	$	—	$	(80,149	)	$	(62,577	)	$	142,726		$	(230,405	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Nine Months EndedSeptember 27, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	681,666		$	—	$	123,813		$	214,312		$	(149,585	)	$	870,206
Cost of sales	557,792			—		115,818			165,142			(149,585		)	689,167
Gross profit	123,874			—		7,995			49,170			—			181,039
Selling, general and administrative expenses	146,389			—		3,099			32,028			—			181,516
Impairment of goodwill	99,524			—		9,181			39,799			—			148,504
Impairment of other intangible assets	54,600			—		11,721			23,366			—			89,687
Restructuring costs	(331		)	—		—			—			—			(331		)
Loss from operations	(176,308		)	—		(16,006		)	(46,023		)	—			(238,337		)
Interest expense, net	60,592			—		—			1,236			—			61,828
Foreign currency loss	—			—		—			836			—			836
Loss before income taxes	(236,900		)	—		(16,006		)	(48,095		)	—			(301,001		)
Income tax benefit	(22,048		)	—		(1,349		)	(1,471		)	—			(24,868		)
Loss before equity loss from subsidiaries	(214,852		)	—		(14,657		)	(46,624		)	—			(276,133		)
Equity loss from subsidiaries	(61,281		)	—		(46,624		)	—			107,905			—
Net loss	(276,133		)	—		(61,281		)	(46,624		)	107,905			(276,133		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	11			—		36			41			(77		)	11
Foreign currency translation adjustments, net of tax	(10,075		)	—		(10,075		)	(10,075		)	20,150			(10,075		)
Total comprehensive loss	$	(286,197	)	$	—	$	(71,320	)	$	(56,658	)	$	127,978		$	(286,197	)

Condensed consolidating statements of cash flows

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months EndedOctober 3, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(31,035	)	$	—	$	15,531		$	6,962		$	—		$	(8,542	)
INVESTING ACTIVITIES
Capital expenditures	(13,160		)	—		(113		)	(1,355		)	—			(14,628		)
Proceeds from the sale of assets	138			—		—			2			—			140
Payments on loans to affiliates	—			—		(15,418		)	(25,000		)	40,418			—
Receipts on loans to affiliates	2,000			—		—			14,000			(16,000		)	—
Net cash used in investing activities	(11,022		)	—		(15,531		)	(12,353		)	24,418			(14,488		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	71,700			—		—			64,031			—			135,731
Payments under ABL facilities	(54,700		)	—		—			(55,953		)	—			(110,653		)
Borrowings from affiliates	40,418			—		—			—			(40,418		)	—
Repayments to affiliates	(14,000		)	—		—			(2,000		)	16,000			—
Net cash provided by financing activities	43,418			—		—			6,078			(24,418		)	25,078
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(70		)	—			(70		)
Net increase in cash and cash equivalents	1,361			—		—			617			—			1,978
Cash and cash equivalents at beginning of period	5,933			—		—			30			—			5,963
Cash and cash equivalents at end of period	$	7,294		$	—	$	—		$	647		$	—		$	7,941

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Nine Months EndedSeptember 27, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(54,847	)	$	—	$	12,948		$	(3,485	)	$	—		$	(45,384	)
INVESTING ACTIVITIES
Capital expenditures	(7,187		)	—		(252		)	(1,033		)	—			(8,472		)
Proceeds from the sale of assets	6			—		—			3			—			9
Payments on loans to affiliates	—			—		(12,696		)	—			12,696			—
Receipts on loans to affiliates	3,900			—		—			—			(3,900		)	—
Net cash used in investing activities	(3,281		)	—		(12,948		)	(1,030		)	8,796			(8,463		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	113,700			—		—			48,231			—			161,931
Payments under ABL facilities	(67,700		)	—		—			(48,317		)	—			(116,017		)
Borrowings from affiliates	12,696			—		—			—			(12,696		)	—
Repayments to affiliates	—			—		—			(3,900		)	3,900			—
Net cash provided by (used in) financing activities	58,696			—		—			(3,986		)	(8,796		)	45,914
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(471		)	—			(471		)
Net increase (decrease) in cash and cash equivalents	568			—		—			(8,972		)	—			(8,404		)
Cash and cash equivalents at beginning of period	7,566			—		—			13,249			—			20,815
Cash and cash equivalents at end of period	$	8,134		$	—	$	—		$	4,277		$	—		$	12,411