In the opinion of management, the accompanying consolidated financial statements of Tredegar Corporation and its subsidiaries (“Tredegar,” “the Company,” “we,” “us” or “our”) contain all adjustments necessary to state fairly, in all material respects, Tredegar’s consolidated financial position as of June 30, 2019, the consolidated results of operations for the three and six months ended June 30, 2019 and 2018, the consolidated cash flows for the six months ended June 30, 2019 and 2018, and the consolidated changes in shareholders’ equity for the six months ended June 30, 2019 and 2018, in accordance with U.S. generally accepted accounting principles (“GAAP”). All such adjustments, unless otherwise detailed in the notes to the consolidated interim financial statements, are deemed to be of a normal, recurring nature.

The Company operates on a calendar fiscal year except for the Aluminum Extrusions segment, which operates on a 52/53-week fiscal year basis. As such, the fiscal second quarter for 2019 and 2018 for this segment references 13-week periods ended June 30, 2019 and June 24, 2018, respectively. The Company does not believe the impact of reporting the results of this segment as stated above is material to the consolidated financial results.

The financial position data as of December 31, 2018 that is included herein was derived from the audited consolidated financial statements provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”) but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the 2018 Form 10-K. The results of operations for the three and six months ended June 30, 2019, are not necessarily indicative of the results to be expected for the full year. Certain prior year balances have been reclassified to conform with current year presentation.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the consolidated statements of cash flows:



	June 30,		December 31,
(In thousands)	2019		2018
Cash and cash equivalents	$	34,660	$	34,397
Restricted cash	5,109		—
Total cash, cash equivalents and restricted cash	$	39,769	$	34,397

Restricted cash as of June 30, 2019 consists of a deposit received in the second quarter of 2019 for the sale of the PE Films idle manufacturing facility in Shanghai, China, which sale closed in the third quarter of 2019. An amount offsetting the deposit is recorded as a current liability in accrued expenses. Chinese government regulations limit the use of these funds to the purposes of the liquidating entity until the completion of the liquidation process, which the Company expects to be concluded within the next twelve months.