Subsidiary Guarantors (Tables)

6 Months Ended

Jul. 02, 2016

Jul. 04, 2015

Subsidiary Guarantors [Abstract]

Condensed Balance Sheet

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	8,356		$	—	$	152		$	886		$	—		$	9,394
Accounts receivable, net	103,506			—		6,903			16,634			—			127,043
Intercompany receivables	352,323			—		67,591			1,794			(421,708		)	—
Inventories	88,440			—		5,527			29,407			—			123,374
Income taxes receivable	—			—		178			1,434			—			1,612
Deferred income taxes	243			—		1,258			1			—			1,502
Prepaid expenses and other current assets	12,114			—		955			1,094			—			14,163
Total current assets	564,982			—		82,564			51,250			(421,708		)	277,088
Property, plant and equipment, net	65,277			—		1,303			24,214			—			90,794
Goodwill	203,841			—		16,713			82,354			—			302,908
Other intangible assets, net	285,115			—		32,633			80,205			—			397,953
Intercompany receivable	—			832,684		—			—			(832,684		)	—
Other assets	3,572			—		1			1,020			—			4,593
Total assets	$	1,122,787		$	832,684	$	133,214		$	239,043		$	(1,254,392	)	$	1,073,336
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	68,213		$	—	$	4,183		$	19,167		$	—		$	91,563
Intercompany payables	1,794			—		—			419,914			(421,708		)	—
Accrued liabilities	71,446			—		4,876			7,308			—			83,630
Deferred income taxes	—			—		—			436			—			436
Income taxes payable	36			—		—			—			—			36
Total current liabilities	141,489			—		9,059			446,825			(421,708		)	175,665
Deferred income taxes	50,147			—		11,920			20,035			—			82,102
Other liabilities	76,641			—		19,676			16,806			—			113,123
Deficit in subsidiaries	153,964			—		246,523			—			(400,487		)	—
Long-term debt	914,907			832,684		—			1,900			(832,684		)	916,807
Member’s deficit	(214,361		)	—		(153,964		)	(246,523		)	400,487			(214,361		)
Total liabilities and member’s deficit	$	1,122,787		$	832,684	$	133,214		$	239,043		$	(1,254,392	)	$	1,073,336

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

July 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	7,472		$	—	$	—		$	381		$	—		$	7,853
Accounts receivable, net	122,265			—		7,679			30,450			—			160,394
Intercompany receivables	329,187			—		69,429			—			(398,616		)	—
Inventories	99,162			—		6,922			37,482			—			143,566
Income taxes receivable	—			—		224			1,537			—			1,761
Deferred income taxes	244			—		1,258			—			—			1,502
Prepaid expenses and other current assets	9,942			—		769			1,424			—			12,135
Total current assets	568,272			—		86,281			71,274			(398,616		)	327,211
Property, plant and equipment, net	60,905			—		1,247			26,288			—			88,440
Goodwill	203,841			—		16,713			88,258			—			308,812
Other intangible assets, net	275,121			—		32,408			83,713			—			391,242
Intercompany receivable	—			831,987		—			—			(831,987		)	—
Other assets	3,296			—		162			971			—			4,429
Total assets	$	1,111,435		$	831,987	$	136,811		$	270,504		$	(1,230,603	)	$	1,120,134
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	88,655		$	—	$	5,476		$	29,328		$	—		$	123,459
Intercompany payables	—			—		—			398,616			(398,616		)	—
Accrued liabilities	60,845			—		4,688			8,479			—			74,012
Deferred income taxes	660			—		—			467			—			1,127
Income taxes payable	(74		)	—		113			2,158			—			2,197
Total current liabilities	150,086			—		10,277			439,048			(398,616		)	200,795
Deferred income taxes	50,148			—		11,920			21,500			—			83,568
Other liabilities	76,601			—		19,557			16,571			—			112,729
Deficit in subsidiaries	134,728			—		229,785			—			(364,513		)	—
Long-term debt	927,948			831,987		—			23,170			(831,987		)	951,118
Member’s deficit	(228,076		)	—		(134,728		)	(229,785		)	364,513			(228,076		)
Total liabilities and member’s deficit	$	1,111,435		$	831,987	$	136,811		$	270,504		$	(1,230,603	)	$	1,120,134

Condensed Income Statement

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Quarter Ended July 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Reclassification/ Eliminations			Consolidated
Net sales	$	261,237		$	—	$	41,809		$	72,442	$	(51,699	)	$	323,789
Cost of sales	198,191			—		37,936			53,356		(51,699		)	237,784
Gross profit	63,046			—		3,873			19,086		—			86,005
Selling, general and administrative expenses	47,401			—		2,205			11,556		—			61,162
Restructuring costs	74													74
Other operating income	(732		)	—		—			—		—			(732		)
Income from operations	16,303			—		1,668			7,530		—			25,501
Interest expense, net	21,366			—		—			252		—			21,618
Foreign currency loss	—			—		—			548		—			548
(Loss) income before income taxes	(5,063		)	—		1,668			6,730		—			3,335
Income tax (benefit) expense	(93		)	—		(26		)	1,768		—			1,649
(Loss) income before equity income from subsidiaries	(4,970		)	—		1,694			4,962		—			1,686
Equity income (loss) from subsidiaries	6,656			—		4,962			—		(11,618		)	—
Net income (loss)	1,686			—		6,656			4,962		(11,618		)	1,686
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	22			—		(46		)	41		—			17
Foreign currency translation adjustments, net of tax	1,429			—		1,429			1,429		(2,858		)	1,429
Total comprehensive income (loss)	$	3,137		$	—	$	8,039		$	6,432	$	(14,476	)	$	3,132

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended July 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Reclassification/ Eliminations			Consolidated
Net sales	$	456,568		$	—	$	74,117		$	120,299	$	(90,914	)	$	560,070
Cost of sales	354,406			—		67,831			89,689		(90,914		)	421,012
Gross profit	102,162			—		6,286			30,610		—			139,058
Selling, general and administrative expenses	94,659			—		3,908			22,028		—			120,595
Restructuring costs	74			—		—			—		—			74
Other operating income	(732		)	—		—			—		—			(732		)
Income from operations	8,161			—		2,378			8,582		—			19,121
Interest expense, net	42,183			—		—			318		—			42,501
Foreign currency loss	—			—		—			165		—			165
(Loss) income before income taxes	(34,022		)	—		2,378			8,099		—			(23,545		)
Income tax expense (benefit)	685			—		(45		)	2,141		—			2,781
(Loss) income before equity income from subsidiaries	(34,707		)	—		2,423			5,958		—			(26,326		)
Equity income (loss) from subsidiaries	8,381			—		5,958			—		(14,339		)	—
Net (loss) income	(26,326		)	—		8,381			5,958		(14,339		)	(26,326		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	39			—		(11		)	81		(75		)	34
Foreign currency translation adjustments, net of tax	12,447			—		12,447			12,447		(24,894		)	12,447
Total comprehensive (loss) income	$	(13,840	)	$	—	$	20,817		$	18,486	$	(39,308	)	$	(13,845	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For the Quarter Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	262,272		$	—	$	42,578		$	77,477		$	(51,078	)	$	331,249
Cost of sales	201,659			—		41,001			58,652			(51,078		)	250,234
Gross profit	60,613			—		1,577			18,825			—			81,015
Selling, general and administrative expenses	49,194			—		2,526			10,446			—			62,166
Income (loss) from operations	11,419			—		(949		)	8,379			—			18,849
Interest expense, net	19,276			—		1,662			218			—			21,156
Foreign currency loss	—			—		—			601			—			601
(Loss) income before income taxes	(7,857		)	—		(2,611		)	7,560			—			(2,908		)
Income tax expense	179			—		53			1,998			—			2,230
(Loss) income before equity income from subsidiaries	(8,036		)	—		(2,664		)	5,562			—			(5,138		)
Equity income from subsidiaries	2,898			—		5,562			—			(8,460		)	—
Net (loss) income	(5,138		)	—		2,898			5,562			(8,460		)	(5,138		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	151			—		60			50			(110		)	151
Foreign currency translation adjustments, net of tax	(1,379		)	—		(1,379		)	(1,379		)	2,758			(1,379		)
Total comprehensive (loss) income	$	(6,366	)	$	—	$	1,579		$	4,233		$	(5,812	)	$	(6,366	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For the Six Months Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	441,910		$	—	$	72,740		$	124,725		$	(87,760	)	$	551,615
Cost of sales	350,626			—		69,807			96,024			(87,760		)	428,697
Gross profit	91,284			—		2,933			28,701			—			122,918
Selling, general and administrative expenses	96,851			—		3,370			20,415			—			120,636
(Loss) income from operations	(5,567		)	—		(437		)	8,286			—			2,282
Interest expense, net	38,064			—		3,323			475			—			41,862
Foreign currency loss	—			—		—			1,117			—			1,117
(Loss) income before income taxes	(43,631		)	—		(3,760		)	6,694			—			(40,697		)
Income tax expense	905			—		77			1,781			—			2,763
(Loss) income before equity income from subsidiaries	(44,536		)	—		(3,837		)	4,913			—			(43,460		)
Equity income from subsidiaries	1,076			—		4,913			—			(5,989		)	—
Net (loss) income	(43,460		)	—		1,076			4,913			(5,989		)	(43,460		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	299			—		118			98			(216		)	299
Foreign currency translation adjustments, net of tax	(12,965		)	—		(12,965		)	(12,965		)	25,930			(12,965		)
Total comprehensive (loss) income	$	(56,126	)	$	—	$	(11,771	)	$	(7,954	)	$	19,725		$	(56,126	)

Condensed Cash Flow Statement

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended July 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(23,656	)	$	—	$	7,633		$	(14,121	)	$	—		$	(30,144	)
Investing Activities
Capital expenditures	(2,430		)	—		(74		)	(1,451		)	—			(3,955		)
Proceeds from the sale of assets	107			—		—			4			—			111
Payments on loans to affiliates	—			—		(7,711		)	—			7,711			—
Receipts on loans to affiliates	—			—		—			(6,500		)	6,500			—
Net cash used in investing activities	(2,323		)	—		(7,785		)	(7,947		)	14,211			(3,844		)
Financing Activities
Borrowings under ABL facilities	55,500			—		—			47,789			—			103,289
Payments under ABL facilities	(62,400		)	—		—			(33,749		)	—			(96,149		)
Issuance of promissory notes	20,000			—		—			7,500			—			27,500
Financing costs	(2,216		)	—		—			(10		)	—			(2,226		)
Borrowings from affiliates	14,211			—		—			—			(14,211		)	—
Net cash provided by financing activities	25,095			—		—			21,530			(14,211		)	32,414
Effect of exchange rate changes on cash and cash equivalents	—			—		—			33			—			33
Net decrease in cash and cash equivalents	(884		)	—		(152		)	(505		)	—			(1,541		)
Cash and cash equivalents at beginning of period	8,356			—		152			886			—			9,394
Cash and cash equivalents at end of period	$	7,472		$	—	$	—		$	381		$	—		$	7,853

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months EndedJuly 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(33,721	)	$	—	$	6,787		$	(11,745	)	$	—		$	(38,679	)
Investing Activities
Capital expenditures	(8,731		)	—		(81		)	(1,089		)	—			(9,901		)
Proceeds from the sale of assets	7			—		—			1			—			8
Payments on loans to affiliates	—			—		(6,706		)	(25,000		)	31,706			—
Receipts on loans to affiliates	2,000			—		—			7,500			(9,500		)	—
Net cash used in investing activities	(6,724		)	—		(6,787		)	(18,588		)	22,206			(9,893		)
Financing Activities
Borrowings under ABL facilities	48,200			—		—			51,531			—			99,731
Payments under ABL facilities	(34,700		)	—		—			(18,353		)	—			(53,053		)
Borrowings from affiliates	31,706			—		—			—			(31,706		)	—
Repayments to affiliates	(7,500		)						(2,000		)	9,500			—
Net cash provided by financing activities	37,706			—		—			31,178			(22,206		)	46,678
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(40		)	—			(40		)
Net (decrease) increase in cash and cash equivalents	(2,739		)	—		—			805			—			(1,934		)
Cash and cash equivalents at beginning of period	5,933			—		—			30			—			5,963
Cash and cash equivalents at end of period	$	3,194		$	—	$	—		$	835		$	—		$	4,029