[X]
|
Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended
|
|
September 29, 2012
|
[ ]
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____ to _____
|
Delaware
|
20-5234618
|
(State or other jurisdiction
of incorporation or organization)
|
(IRS employer
identification number)
|
101 Oakley Street
Evansville, Indiana
|
47710
|
(Address of principal executive offices)
|
(Zip code)
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.01 par value per share
|
New York Stock Exchange
|
·
|
risks associated with our substantial indebtedness and debt service;
|
·
|
changes in prices and availability of resin and other raw materials and our ability to pass on changes in raw material prices on a timely basis;
|
·
|
performance of our business and future operating results;
|
·
|
risks related to our acquisition strategy and integration of acquired businesses;
|
·
|
reliance on unpatented know-how and trade secrets;
|
·
|
increases in the cost of compliance with laws and regulations, including environmental, safety, and production and product laws and regulations;
|
·
|
risks related to disruptions in the overall economy and the financial markets may adversely impact our business;
|
·
|
catastrophic loss of one of our key manufacturing facilities, natural disasters, and other unplanned business interruptions;
|
·
|
risks of competition, including foreign competition, in our existing and future markets;
|
·
|
general business and economic conditions, particularly an economic downturn;
|
·
|
the ability of our insurance to cover fully our potential exposures; and
|
·
|
the other factors discussed in the section of this Form 10-K titled “Risk Factors.”
|
Page
|
||
PART I
|
||
Item 1
|
BUSINESS
|
3
|
Item 1A.
|
RISK FACTORS
|
8
|
Item 1B.
|
UNRESOLVED STAFF COMMENTS
|
14
|
Item 2.
|
PROPERTIES
|
14
|
Item 3.
|
LEGAL PROCEEDINGS
|
14
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
15
|
PART II
|
||
Item 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
|
|
MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
|
15
|
|
Item 6
|
SELECTED FINANCIAL DATA
|
16
|
Item 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
|
|
RESULTS OF OPERATIONS
|
17
|
|
Item 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
28
|
Item 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
30
|
Item 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
|
|
AND FINANCIAL DISCLOSURE
|
30
|
|
Item 9A.
|
CONTROLS AND PROCEDURES
|
30
|
Item 9B.
|
OTHER INFORMATION
|
30
|
PART III
|
||
Item 10.
|
DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
|
31
|
Item 11.
|
EXECUTIVE COMPENSATION
|
31
|
Item 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|
|
AND RELATED STOCKHOLDER MATTERS
|
31
|
|
Item 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
|
|
INDEPENDENCE
|
31
|
|
Item 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
31
|
PART IV
|
||
Item 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
32
|
·
|
limit our ability to borrow money for our working capital, capital expenditures, debt service requirements or other corporate purposes;
|
·
|
require us to dedicate a substantial portion of our cash flow to payments on our indebtedness, which would reduce the amount of cash flow available to fund working capital, capital expenditures, product development and other corporate requirements;
|
·
|
increase our vulnerability to general adverse economic and industry conditions; and
|
·
|
limit our ability to respond to business opportunities, including growing our business through acquisitions.
|
·
|
incur or guarantee additional debt;
|
·
|
pay dividends and make other restricted payments;
|
·
|
create or incur certain liens;
|
·
|
make certain investments;
|
·
|
engage in sales of assets and subsidiary stock;
|
·
|
enter into transactions with affiliates;
|
·
|
transfer all or substantially all of our assets or enter into merger or consolidation transactions; and
|
·
|
make capital expenditures.
|
·
|
the diversion of management’s attention and resources to the assimilation of the acquired companies and their employees and to the management of expanding operations;
|
·
|
the incorporation of acquired products into our product line;
|
·
|
problems associated with maintaining relationships with employees and customers of acquired businesses;
|
·
|
the increasing demands on our operational systems;
|
·
|
ability to integrate and implement effective disclosure controls and procedures and internal controls for financial reporting within the allowable time frame as permitted by Sarbanes-Oxley Act;
|
·
|
possible adverse effects on our reported operating results, particularly during the first several reporting periods after such acquisitions are completed; and
|
·
|
the loss of key employees and the difficulty of presenting a unified corporate image.
|
· the requirement that a majority of the Board of Directors consists of independent directors;
|
· the requirement that we have a nominating/corporate governance committee that is composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities;
|
· the requirement that we have a compensation committee that is composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities; and
|
· the requirement for an annual performance evaluation of the nominating/corporate governance and compensation committees.
|
Recent Sales of Unregistered Securities.
|
·
|
On November 28, 2011, the Company issued 44,026 shares of its common stock to a certain key employee at a purchase price of $7.22 per share.
|
·
|
On January 1, 2012, the Company granted stock options to certain key employees pursuant to its 2006 Equity Incentive Plan to purchase 149,131 shares of its common stock at an exercise price of $8.16 per share.
|
·
|
On March 1, 2012, the Company issued 49,000 shares of its common stock to a certain key employee at a purchase price of $8.16 per share.
|
·
|
On May 1, 2012, the Company issued 24,500 shares of its common stock to a certain key employee at a purchase price of $8.16 per share and 21,572 shares of its common stock to a certain key employee at a purchase price of $6.18 per share.
|
·
|
On May 15, 2012, the Company issued 1,911 shares of its common stock to a certain key employee at a purchase price of $8.16 per share, 18,166 shares of its common stock to a certain key employee at a purchase price of $8.48 per share, and 4,361 shares of its common stock to a certain key employee at a purchase price of $9.21 per share.
|
·
|
On May 17, 2012, the Company issued 612 shares of its common stock to a certain key employee at a purchase price of $4.37 per share and 1,457 shares of its common stock to a certain key employee at a purchase price of $9.21 per share.
|
·
|
On June 1, 2012, the Company granted stock options to certain key employees pursuant to its 2006 Equity Incentive Plan to purchase 176,130 shares of its common stock at an exercise price of $10.24 per share.
|
·
|
On July 9, 2012, the Company issued 21,572 shares of its common stock to a certain key employee at a purchase price of $6.18 per share.
|
·
|
On August 8, 2012, the Company issued 10,265 shares of its common stock to a certain key employee at a purchase price of $6.18 per share.
|
·
|
On August 15, 2012, the Company issued 1,898 shares of its common stock to a certain key employee at a purchase price of $4.37 per share, 1,960 shares of its common stock to a certain key employee at a purchase price of $8.16 per share,
|
·
|
4,361 shares of its common stock to a certain key employee at a purchase price of $9.21 per share, and 4,532 shares of its common stock to a certain key employee at a purchase price of $9.21 per share.
|
·
|
On August 22, 2012, the Company issued 12,462 shares of its common stock to a certain key employee at a purchase price of $8.16 per share.
|
·
|
On August 25, 2012, the Company issued 1,335 shares of its common stock to a certain key employee at a purchase price of $8.48 per share and 1,335 shares of its common stock to a certain key employee at a purchase price of $8.48 per share.
|
·
|
On August 31, 2012, the Company issued 11,760 shares of its common stock to a certain key employee at a purchase price of $8.16 per share.
|
·
|
On September 13, 2012, the Company issued 1,911 shares of its common stock to a certain key employee at a purchase price of $8.16 per share and 4,189 shares of its common stock to a certain key employee at a purchase price of $9.21 per share.
|
Fiscal 2012
|
Fiscal 2011
|
Fiscal 2010
|
Fiscal 2009
|
Fiscal 2008
|
||||||||||||||||
Statement of Operations Data:
|
||||||||||||||||||||
Net sales
|
$ | 4,766 | $ | 4,561 | $ | 4,257 | $ | 3,187 | $ | 3,513 | ||||||||||
Cost of goods sold
|
3,949 | 3,878 | 3,667 | 2,641 | 3,019 | |||||||||||||||
Selling, general and administrative
|
308 | 275 | 272 | 229 | 247 | |||||||||||||||
Amortization of intangibles
|
109 | 106 | 107 | 96 | 93 | |||||||||||||||
Restructuring and impairment charges (a)
|
31 | 221 | 41 | 11 | 10 | |||||||||||||||
Other operating expenses
|
44 | 39 | 46 | 24 | 33 | |||||||||||||||
Operating income
|
325 | 42 | 124 | 186 | 111 | |||||||||||||||
Other expense (income) (b)
|
(7 | ) | 61 | (27 | ) | (373 | ) | — | ||||||||||||
Net interest expense
|
328 | 327 | 313 | 304 | 321 | |||||||||||||||
Net income (loss) from continuing operations before income taxes
|
4 | (346 | ) | (162 | ) | 255 | (210 | ) | ||||||||||||
Income tax benefit
|
2 | (47 | ) | (49 | ) | 99 | (72 | ) | ||||||||||||
Discontinued operations, net of tax
|
— | — | — | 4 | — | |||||||||||||||
Net income (loss)
|
$ | 2 | $ | (299 | ) | $ | (113 | ) | $ | 152 | $ | (138 | ) | |||||||
Comprehensive income (loss)
|
$ | 3 | $ | (324 | ) | $ | (112 | ) | $ | 128 | $ | (154 | ) | |||||||
Net income (loss) available to Common Stockholders:
|
||||||||||||||||||||
Basic
|
$ | 0.02 | $ | (3.55 | ) | $ | (1.34 | ) | $ | 1.80 | $ | (1.63 | ) | |||||||
Diluted
|
0.02 | (3.55 | ) | (1.34 | ) | 1.79 | (1.63 | ) | ||||||||||||
Balance Sheet Data (at period end):
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 87 | $ | 42 | $ | 148 | $ | 10 | $ | 190 | ||||||||||
Property, plant and equipment
|
1,216 | 1,250 | 1,146 | 875 | 863 | |||||||||||||||
Total assets
|
5,106 | 5,217 | 5,344 | 4,216 | 4,766 | |||||||||||||||
Long-term debt obligations, less current portion
|
4,431 | 4,581 | 4,397 | 3,422 | 4,124 | |||||||||||||||
Total liabilities
|
5,558 | 5,668 | 5,474 | 4,236 | 4,923 | |||||||||||||||
Redeemable shares
|
23 | 16 | 11 | — | — | |||||||||||||||
Stockholders’ equity (deficit)
|
(475 | ) | (467 | ) | (141 | ) | (20 | ) | (157 | ) | ||||||||||
Cash Flow and other Financial Data:
|
||||||||||||||||||||
Net cash from operating activities
|
$ | 479 | $ | 327 | $ | 112 | $ | 413 | $ | 10 | ||||||||||
Net cash from investing activities
|
(255 | ) | (523 | ) | (852 | ) | (195 | ) | (656 | ) | ||||||||||
Net cash from financing activities
|
(179 | ) | 90 | 878 | (398 | ) | 821 |
(a)
|
Includes a goodwill impairment charge of $165 in fiscal 2011
|
(b)
|
Includes a loss on extinguishment of debt of $68 in fiscal 2011 and $368 on gain related to the repurchase of debt in fiscal 2009
|
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Polyethylene Butene Film
|
Polypropylene
|
|||||||||||||||||||||||
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
|||||||||||||||||||
1st quarter
|
$ | .68 | $ | .68 | $ | .71 | $ | .79 | $ | .78 | $ | .70 | ||||||||||||
2nd quarter
|
.76 | .72 | .67 | .88 | .95 | .82 | ||||||||||||||||||
3rd quarter
|
.72 | .79 | .68 | .85 | 1.08 | .84 | ||||||||||||||||||
4th quarter
|
.68 | .73 | .62 | .71 | .98 | .77 |
Fiscal Year
|
||||||||||||||||
2012
|
2011
|
$ Change
|
% Change
|
|||||||||||||
Net sales:
|
||||||||||||||||
Rigid Open Top
|
$ | 1,229 | $ | 1,261 | $ | (32 | ) | (3 | %) | |||||||
Rigid Closed Top
|
1,438 | 1,053 | 385 | 37 | % | |||||||||||
Rigid Packaging
|
$ | 2,667 | $ | 2,314 | $ | 353 | 15 | % | ||||||||
Engineered Materials
|
1,362 | 1,451 | (89 | ) | (6 | %) | ||||||||||
Flexible Packaging
|
737 | 796 | (59 | ) | (7 | %) | ||||||||||
Total net sales
|
$ | 4,766 | $ | 4,561 | $ | 205 | 4 | % |
Fiscal Year
|
||||||||||||||||
2012
|
2011
|
$ Change
|
% Change
|
|||||||||||||
Operating income (loss):
|
||||||||||||||||
Rigid Open Top
|
$ | 159 | $ | 155 | $ | 4 | 3 | % | ||||||||
Rigid Closed Top
|
95 | 77 | 18 | 23 | % | |||||||||||
Rigid Packaging
|
$ | 254 | $ | 232 | $ | 22 | 9 | % | ||||||||
Engineered Materials
|
70 | (71 | ) | 141 | 199 | % | ||||||||||
Flexible Packaging
|
1 | (119 | ) | 120 | 101 | % | ||||||||||
Total operating income
|
$ | 325 | $ | 42 | $ | 283 | 674 | % |
Fiscal Year
|
||||||||||||||||
2011
|
2010
|
$ Change
|
% Change
|
|||||||||||||
Net sales:
|
||||||||||||||||
Rigid Open Top
|
$ | 1,261 | $ | 1,160 | $ | 101 | 9 | % | ||||||||
Rigid Closed Top
|
1,053 | 970 | 83 | 9 | % | |||||||||||
Rigid Packaging
|
$ | 2,314 | $ | 2,130 | $ | 184 | 9 | % | ||||||||
Engineered Materials
|
1,451 | 1,457 | (6 | ) | 0 | % | ||||||||||
Flexible Packaging
|
796 | 670 | 126 | 19 | % | |||||||||||
Total net sales
|
$ | 4,561 | $ | 4,257 | $ | 304 | 7 | % |
Fiscal Year
|
||||||||||||||||
2011
|
2010
|
$ Change
|
% Change
|
|||||||||||||
Operating income (loss):
|
||||||||||||||||
Rigid Open Top
|
$ | 155 | $ | 124 | $ | 31 | 25 | % | ||||||||
Rigid Closed Top
|
77 | 73 | 4 | 5 | % | |||||||||||
Rigid Packaging
|
$ | 232 | $ | 197 | $ | 35 | 18 | % | ||||||||
Engineered Materials
|
(71 | ) | 4 | (75 | ) | (1,875 | %) | |||||||||
Flexible Packaging
|
(119 | ) | (77 | ) | (42 | ) | (55 | %) | ||||||||
Total operating income
|
$ | 42 | $ | 124 | $ | (82 | ) | (66 | %) |
Fiscal Year
|
||||||||||||||||
2010
|
2009
|
$ Change
|
% Change
|
|||||||||||||
Net sales:
|
||||||||||||||||
Rigid Open Top
|
$ | 1,160 | $ | 1,028 | $ | 132 | 13 | % | ||||||||
Rigid Closed Top
|
970 | 857 | 113 | 13 | % | |||||||||||
Rigid Packaging
|
$ | 2,130 | $ | 1,885 | $ | 245 | 13 | % | ||||||||
Engineered Materials
|
1,457 | 1,219 | 238 | 19 | % | |||||||||||
Flexible Packaging
|
670 | 83 | 587 | 707 | % | |||||||||||
Total net sales
|
$ | 4,257 | $ | 3,187 | $ | 1,070 | 34 | % |
Fiscal Year
|
||||||||||||||||
2010
|
2009
|
$ Change
|
% Change
|
|||||||||||||
Operating income (loss):
|
||||||||||||||||
Rigid Open Top
|
$ | 124 | $ | 114 | $ | 10 | 9 | % | ||||||||
Rigid Closed Top
|
73 | 58 | 15 | 26 | % | |||||||||||
Rigid Packaging
|
$ | 197 | $ | 172 | $ | 25 | 15 | % | ||||||||
Engineered Materials
|
4 | 27 | (23 | ) | (85 | %) | ||||||||||
Flexible Packaging
|
(77 | ) | (13 | ) | (64 | ) | (492 | %) | ||||||||
Total operating income
|
$ | 124 | $ | 186 | $ | (62 | ) | (33 | %) |
Quarterly Period Ended
|
||||||||
Fiscal 2012
|
September 29, 2012
|
|||||||
Adjusted EBITDA
|
$ | 803 | $ | 215 | ||||
Net interest expense
|
(328 | ) | (81 | ) | ||||
Depreciation and amortization
|
(355 | ) | (93 | ) | ||||
Income tax benefit (expense)
|
(2 | ) | (9 | ) | ||||
Business optimization and other expense
|
(53 | ) | (5 | ) | ||||
Restructuring and impairment
|
(31 | ) | (1 | ) | ||||
Pro forma acquisitions
|
(6 | ) | — | |||||
Unrealized cost savings
|
(26 | ) | (3 | ) | ||||
Net loss
|
$ | 2 | $ | 23 | ||||
Cash flow from operating activities
|
$ | 479 | $ | 201 | ||||
Net additions to property, plant and equipment
|
(200 | ) | (42 | ) | ||||
Adjusted free cash flow
|
$ | 279 | $ | 159 | ||||
Cash flow from investing activities
|
(255 | ) | (42 | ) | ||||
Cash flow from financing activities
|
(179 | ) | (111 | ) |
Payments due by period as of the end of fiscal 2012
|
||||||||||||||||||||
Total
|
< 1 year
|
1-3 years
|
4-5 years
|
> 5 years
|
||||||||||||||||
Long-term debt, excluding capital leases
|
$ | 4,393 | $ | 16 | $ | 2,052 | $ | 1,025 | $ | 1,300 | ||||||||||
Capital leases (a)
|
104 | 30 | 50 | 17 | 7 | |||||||||||||||
Fixed interest rate payments (b)
|
1,287 | 249 | 443 | 308 | 287 | |||||||||||||||
Variable interest rate payments (c)
|
144 | 49 | 94 | 1 | — | |||||||||||||||
Operating leases
|
289 | 46 | 68 | 56 | 119 | |||||||||||||||
Funding of pension and other postretirement obligations (d)
|
8 | 8 | — | — | — | |||||||||||||||
Total contractual cash obligations
|
$ | 6,225 | $ | 398 | $ | 2,707 | $ | 1,407 | $ | 1,713 |
(a)
|
Includes anticipated interest of $17 over the life of the capital leases.
|
(b)
|
Includes variable rate debt subject to interest rate swap agreements.
|
(c)
|
Based on applicable interest rates in effect end of fiscal 2012.
|
(d)
|
Pension and other postretirement contributions have been included in the above table for the next year. The amount is the estimated contributions to our defined benefit plans. The assumptions used by the actuary in calculating the projection includes weighted average return on pension assets of approximately 8% for 2012. The estimation may vary based on the actual return on our plan assets. See Note 9 to the Consolidated or Combined Financial Statements of this Form 10-K for more information on these obligations.
|
Fair Value
July 1, 2012
|
Carrying Value
July 1, 2012
|
Goodwill as of
September 29, 2012
|
||||||||||
Rigid Open Top
|
$ | 2,140 | $ | 1,651 | $ | 681 | ||||||
Rigid Closed Top
|
2,485 | 1,778 | 832 | |||||||||
Engineered Films
|
785 | 489 | 55 | |||||||||
Tapes
|
345 | 223 | 18 | |||||||||
Flexible Packaging
|
580 | 452 | 40 | |||||||||
$ | 1,626 |
Index to Financial Statements
|
|
Report of Independent Registered Public Accounting Firm
|
33
|
Consolidated Balance Sheets as of fiscal 2012 and 2011
|
34
|
Consolidated Statements of Operations and Comprehensive Income (Loss) for fiscal 2012, 2011 and 2010
|
35
|
Consolidated Statements of Changes in Stockholders' Equity as of fiscal 2012, 2011 and 2010
|
36
|
Consolidated Statements of Cash Flows for fiscal 2012, 2011 and 2010
|
37
|
Notes to Consolidated Financial Statements
|
38
|
Index to Financial Statement Schedules
All schedules have been omitted because they are not applicable or not required or because the required information is included in the consolidated financial statements or notes thereto.
|
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
None
|
Item 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
|
1.
|
Financial Statements
|
|
The financial statements listed under Item 8 are filed as part of this report.
|
|
2.
|
Financial Statement Schedules
|
|
Schedules have been omitted because they are either not applicable or the required information has been disclosed in the financial statements or notes thereto.
|
|
3.
|
Exhibits
|
|
The exhibits listed on the Exhibit Index immediately following the signature page of this annual report are filed as part of this report.
|
September 29, 2012
|
October 1, 2011
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 87 | $ | 42 | ||||
Accounts receivable (less allowance for doubtful accounts of $3 and $4
at September 29, 2012 and October 1, 2011, respectively)
|
455 | 543 | ||||||
Inventories
|
535 | 578 | ||||||
Deferred income taxes
|
114 | 62 | ||||||
Prepaid expenses and other current assets
|
42 | 30 | ||||||
Total current assets
|
1,233 | 1,255 | ||||||
Property, plant and equipment
|
1,216 | 1,250 | ||||||
Goodwill, intangible assets and deferred costs
|
2,636 | 2,704 | ||||||
Other assets
|
21 | 8 | ||||||
Total assets
|
$ | 5,106 | $ | 5,217 | ||||
Liabilities and stockholders' equity (deficit)
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 306 | $ | 352 | ||||
Accrued expenses and other current liabilities
|
300 | 286 | ||||||
Current portion of long-term debt
|
40 | 46 | ||||||
Total current liabilities
|
646 | 684 | ||||||
Long-term debt, less current portion
|
4,431 | 4,581 | ||||||
Deferred income taxes
|
315 | 233 | ||||||
Other long-term liabilities
|
166 | 170 | ||||||
Total liabilities
|
5,558 | 5,668 | ||||||
Commitments and contingencies
|
||||||||
Redeemable shares
|
23 | 16 | ||||||
Stockholders' equity (deficit):
|
||||||||
Common stock: $0.01 par value: 400,000,000 shares authorized; 84,696,218 shares issued as of September 29, 2012 and October 1, 2011 and 83,188,488 and 83,863,047 shares outstanding as of September 29, 2012 and October 1, 2011
|
1 | 1 | ||||||
Paid-in capital
|
131 | 142 | ||||||
Notes receivable-common stock
|
(2 | ) | (2 | ) | ||||
Non controlling interest
|
3 | 3 | ||||||
Accumulated deficit
|
(561 | ) | (563 | ) | ||||
Accumulated other comprehensive loss
|
(47 | ) | (48 | ) | ||||
Total stockholders' equity (deficit)
|
(475 | ) | (467 | ) | ||||
Total liabilities and stockholders' equity (deficit)
|
$ | 5,106 | $ | 5,217 |
Fiscal years ended
|
||||||||||||
September 29, 2012
|
October 1, 2011
|
October 2, 2010
|
||||||||||
Net sales
|
$ | 4,766 | $ | 4,561 | $ | 4,257 | ||||||
Costs and expenses:
|
||||||||||||
Cost of goods sold
|
3,949 | 3,878 | 3,667 | |||||||||
Selling, general and administrative
|
308 | 275 | 272 | |||||||||
Amortization of intangibles
|
109 | 106 | 107 | |||||||||
Restructuring and impairment charges
|
31 | 221 | 41 | |||||||||
Other operating expenses
|
44 | 39 | 46 | |||||||||
Operating income
|
325 | 42 | 124 | |||||||||
Other expense (income)
|
(7 | ) | 61 | (27 | ) | |||||||
Interest expense
|
328 | 327 | 313 | |||||||||
Income (loss) before income taxes
|
4 | (346 | ) | (162 | ) | |||||||
Income tax expense (benefit)
|
2 | (47 | ) | (49 | ) | |||||||
Net income (loss)
|
$ | 2 | $ | (299 | ) | $ | (113 | ) | ||||
Comprehensive income (loss):
|
||||||||||||
Currency translation
|
6 | (10 | ) | 6 | ||||||||
Interest rate hedges
|
4 | (8 | ) | - | ||||||||
Defined benefit pension and retiree health benefit plans
|
(14 | ) | (14 | ) | (12 | ) | ||||||
Provision for income taxes related to other comprehensive income items
|
5 | 7 | 7 | |||||||||
Comprehensive income (loss)
|
$ | 3 | $ | (324 | ) | $ | (112 | ) | ||||
Net income (loss) per share:
|
||||||||||||
Basic
|
$ | 0.02 | $ | (3.55 | ) | $ | (1.34 | ) | ||||
Diluted
|
$ | 0.02 | $ | (3.55 | ) | $ | (1.34 | ) | ||||
Weighted-average number of shares outstanding: (in thousands)
|
||||||||||||
Basic
|
83,435 | 84,121 | 84,525 | |||||||||
Diluted
|
86,644 | 84,121 | 84,525 |
Common Stock
|
Paid-in Capital
|
Notes Receivable-Common Stock
|
Non Controlling Interest
|
Accumulated Other Comprehensive Loss
|
Accumulated Deficit
|
Total
|
||||||||||||||||
Balance at September 26, 2009
|
$
|
1
|
$
|
160
|
$
|
(2)
|
$
|
-
|
$
|
(28)
|
$
|
(151)
|
$
|
(20)
|
||||||||
Stock compensation expense
|
-
|
1
|
-
|
-
|
-
|
-
|
1
|
|||||||||||||||
Interest rate hedge amortization
|
-
|
-
|
-
|
-
|
4
|
-
|
4
|
|||||||||||||||
Fair value adjustment of redeemable stock
|
-
|
(14)
|
-
|
-
|
-
|
-
|
(14)
|
|||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(113)
|
(113)
|
|||||||||||||||
Currency translation
|
-
|
-
|
-
|
-
|
6
|
-
|
6
|
|||||||||||||||
Defined benefit pension and retiree health benefit plans, net of tax
|
-
|
-
|
-
|
-
|
(5)
|
-
|
(5)
|
|||||||||||||||
Balance at October 2, 2010
|
1
|
147
|
-
|
(2)
|
-
|
-
|
-
|
(23)
|
(264)
|
(141)
|
||||||||||||
Stock compensation expense
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
2
|
||||||||||||||
Non controlling interest
|
-
|
-
|
-
|
3
|
-
|
-
|
3
|
|||||||||||||||
Fair value adjustment of redeemable stock
|
-
|
(7)
|
-
|
-
|
-
|
-
|
(7)
|
|||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(299)
|
(299)
|
|||||||||||||||
Currency translation
|
-
|
-
|
-
|
-
|
(10)
|
-
|
(10)
|
|||||||||||||||
Interest rate hedges, net of tax
|
-
|
-
|
-
|
-
|
(6)
|
-
|
(6)
|
|||||||||||||||
Defined benefit pension and retiree health benefit plans, net of tax
|
-
|
-
|
-
|
-
|
(9)
|
-
|
(9)
|
|||||||||||||||
Balance at October 1, 2011
|
1
|
-
|
142
|
-
|
(2)
|
-
|
3
|
-
|
(48)
|
-
|
(563)
|
-
|
(467)
|
|||||||||
Stock compensation expense
|
-
|
2
|
-
|
-
|
-
|
-
|
2
|
|||||||||||||||
Interest rate hedge amortization
|
-
|
-
|
-
|
-
|
3
|
-
|
3
|
|||||||||||||||
Fair value adjustment of redeemable stock
|
-
|
(13)
|
-
|
-
|
-
|
-
|
(13)
|
|||||||||||||||
Treasury stock, net
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
2
|
2
|
|||||||||||||||
Currency translation
|
-
|
-
|
-
|
-
|
6
|
-
|
6
|
|||||||||||||||
Defined benefit pension and retiree health benefit plans, net of tax
|
-
|
-
|
-
|
-
|
(8)
|
-
|
(8)
|
|||||||||||||||
Balance at September 29, 2012
|
$
|
1
|
$
|
131
|
$
|
(2)
|
$
|
3
|
$
|
(47)
|
$
|
(561)
|
$
|
(475)
|
Fiscal years ended
|
||||||||||||
September 29, 2012
|
October 1, 2011
|
October 2, 2010
|
||||||||||
Cash Flows from Operating Activities:
|
||||||||||||
Net income (loss)
|
$ | 2 | $ | (299 | ) | $ | (113 | ) | ||||
Adjustments to reconcile net cash from operating activities:
|
||||||||||||
Depreciation
|
246 | 238 | 210 | |||||||||
Amortization of intangibles
|
109 | 106 | 107 | |||||||||
Non-cash interest expense
|
24 | 21 | 31 | |||||||||
Write-off of deferred financing fees and loss on extinguishment of debt
|
- | 68 | 1 | |||||||||
Non-cash gain on debt repurchase
|
(1 | ) | (4 | ) | (13 | ) | ||||||
Deferred income taxes
|
1 | (51 | ) | (52 | ) | |||||||
Impairment of long-lived assets and goodwill
|
20 | 200 | 19 | |||||||||
Other non-cash items
|
6 | (3 | ) | (14 | ) | |||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable, net
|
95 | (11 | ) | (41 | ) | |||||||
Inventories
|
37 | 59 | (118 | ) | ||||||||
Prepaid expenses and other assets
|
(7 | ) | 25 | 12 | ||||||||
Accounts payable and other liabilities
|
(53 | ) | (22 | ) | 83 | |||||||
Net cash from operating activities
|
479 | 327 | 112 | |||||||||
Cash Flows from Investing Activities:
|
||||||||||||
Additions to property, plant and equipment
|
(230 | ) | (160 | ) | (223 | ) | ||||||
Proceeds from disposal of assets
|
30 | 5 | 29 | |||||||||
Acquisitions of business, net of cash acquired
|
(55 | ) | (368 | ) | (658 | ) | ||||||
Net cash from investing activities
|
(255 | ) | (523 | ) | (852 | ) | ||||||
Cash Flows from Financing Activities:
|
||||||||||||
Proceeds from long-term borrowings
|
2 | 995 | 1,097 | |||||||||
Purchase of common stock
|
(6 | ) | (2 | ) | (3 | ) | ||||||
Repayment of long-term debt
|
(175 | ) | (880 | ) | (178 | ) | ||||||
Debt financing costs
|
- | (23 | ) | (38 | ) | |||||||
Net cash from financing activities
|
(179 | ) | 90 | 878 | ||||||||
Effect of currency translation on cash
|
- | - | - | |||||||||
Net increase (decrease) in cash and cash equivalents
|
45 | (106 | ) | 138 | ||||||||
Cash and cash equivalents at beginning of period
|
42 | 148 | 10 | |||||||||
Cash and cash equivalents at end of period
|
$ | 87 | $ | 42 | $ | 148 |
Fiscal year
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Risk-free interest rate
|
0.6 - 0.9 | % | 1.3 | % | 2.6 | % | ||||||
Dividend yield
|
0.0 | % | 0.0 | % | 0.0 | % | ||||||
Volatility factor
|
.38 | .32 - .34 | .33 | |||||||||
Expected option life
|
5 years
|
5 years
|
5 years
|
2012
|
2011
|
2010
|
||||||||||
Allowance for doubtful accounts, beginning
|
$ | 4 | $ | 4 | $ | 3 | ||||||
Bad debt expense
|
1 | 1 | 2 | |||||||||
Write-offs against allowance
|
(2 | ) | (1 | ) | (1 | ) | ||||||
Allowance for doubtful accounts, ending
|
$ | 3 | $ | 4 | $ | 4 |
Inventories:
|
2012
|
2011
|
||||||
Finished goods
|
$ | 306 | $ | 338 | ||||
Raw materials
|
229 | 240 | ||||||
$ | 535 | $ | 578 |
Property, plant and equipment:
|
2012
|
2011
|
||||||
Land, buildings and improvements
|
$ | 281 | $ | 268 | ||||
Equipment and construction in progress
|
2,019 | 1,836 | ||||||
2,300 | 2,104 | |||||||
Less accumulated depreciation
|
1,084 | 854 | ||||||
$ | 1,216 | $ | 1,250 |
Rigid Open
Top
|
Rigid Closed Top
|
Engineered Materials
|
Flexible Packaging
|
Total
|
||||||||||||||||
Balance as of fiscal 2010
|
$ | 682 | $ | 771 | $ | 134 | $ | 113 | $ | 1,700 | ||||||||||
Adjustment for income taxes
|
- | 6 | 4 | - | 10 | |||||||||||||||
Foreign currency translation adjustment
|
- | (1 | ) | - | - | (1 | ) | |||||||||||||
Impairment of goodwill
|
- | - | (88 | ) | (77 | ) | (165 | ) | ||||||||||||
Goodwill from acquisitions
|
(1 | ) | 43 | 5 | 4 | 51 | ||||||||||||||
Balance as of fiscal 2011
|
$ | 681 | $ | 819 | $ | 55 | $ | 40 | $ | 1,595 | ||||||||||
Adjustment for income taxes
|
- | - | - | - | - | |||||||||||||||
Foreign currency translation adjustment
|
- | 2 | - | - | 2 | |||||||||||||||
Goodwill from acquisitions
|
- | 11 | 18 | - | 29 | |||||||||||||||
Balance as of fiscal 2012
|
$ | 681 | $ | 832 | $ | 73 | $ | 40 | $ | 1,626 | ||||||||||
Customer Relationships
|
Trademarks
|
Other Intangibles
|
Accumulated Amortization
|
Total
|
||||||||||||||||
Balance as of fiscal 2010
|
$ | 1,145 | $ | 277 | $ | 76 | $ | (396 | ) | $ | 1,102 | |||||||||
Adjustment for income taxes
|
- | - | (4 | ) | - | (4 | ) | |||||||||||||
Amortization expense
|
- | - | - | (106 | ) | (106 | ) | |||||||||||||
Acquisition intangibles
|
33 | 9 | 10 | - | 52 | |||||||||||||||
Balance as of fiscal 2011
|
$ | 1,178 | $ | 286 | $ | 82 | $ | (502 | ) | $ | 1,044 | |||||||||
Adjustment for income taxes
|
- | - | (4 | ) | - | (4 | ) | |||||||||||||
Write-off of fully amortized intangibles
|
- | - | (7 | ) | 7 | - | ||||||||||||||
Amortization expense
|
- | - | - | (109 | ) | (109 | ) | |||||||||||||
Impairment of intangibles
|
(37 | ) | - | - | 20 | (17 | ) | |||||||||||||
Acquisition intangibles
|
12 | 3 | 28 | - | 43 | |||||||||||||||
Balance as of fiscal 2012
|
$ | 1,153 | $ | 289 | $ | 99 | $ | (584 | ) | $ | 957 |
Currency Translation
|
Defined Benefit Pension and Retiree Health Benefit Plans
|
Interest Rate Hedges
|
Accumulated Other Comprehensive Loss
|
|||||||||||||
Balance as of fiscal 2010
|
$ | (11 | ) | $ | (12 | ) | $ | - | $ | (23 | ) | |||||
Other comprehensive loss
|
(10 | ) | (14) | (8 | ) | (32 | ) | |||||||||
Tax expense (benefit)
|
- | 5 | 2 | 7 | ||||||||||||
Balance as of fiscal 2011
|
$ | (21 | ) | $ | (21 | ) | $ | (6 | ) | $ | (48 | ) | ||||
Other comprehensive income (loss)
|
6 | (14 | ) | 4 | (4 | ) | ||||||||||
Tax expense (benefit)
|
- | 6 | (1 | ) | 5 | |||||||||||
Balance as of fiscal 2012
|
$ | (15 | ) | $ | (29 | ) | $ | (3 | ) | $ | (47 | ) |
Working capital
|
$ | 80 | ||
Property and equipment
|
199 | |||
Intangible assets
|
43 | |||
Goodwill
|
60 | |||
Other long-term liabilities
|
(31 | ) | ||
Net assets acquired
|
$ | 351 |
Maturity Date
|
2012
|
2011
|
|||||||
Term loan
|
April 2015
|
$ | 1,134 | $ | 1,146 | ||||
Revolving line of credit
|
June 2016
|
73 | 195 | ||||||
First Priority Senior Secured Floating Rate Notes
|
February 2015
|
681 | 681 | ||||||
8¼% First Priority Notes
|
November 2015
|
370 | 370 | ||||||
Second Priority Senior Secured Floating Rate Notes
|
September 2014
|
210 | 210 | ||||||
91/2% Second Priority Notes
|
May 2018
|
500 | 500 | ||||||
Senior Unsecured Term Loan
|
June 2014
|
39 | 56 | ||||||
9¾% Second Priority Notes
|
January 2021
|
800 | 800 | ||||||
10¼% Senior Subordinated Notes
|
March 2016
|
127 | 127 | ||||||
11% Senior Subordinated Notes
|
September 2016
|
455 | 455 | ||||||
Debt discount, net
|
(9 | ) | (13 | ) | |||||
Capital leases and other
|
Various
|
91 | 100 | ||||||
4,471 | 4,627 | ||||||||
Less current portion of long-term debt
|
(40 | ) | (46 | ) | |||||
$ | 4,431 | $ | 4,581 |
2013
|
$ 40
|
2014
|
281
|
2015
|
1,813
|
2016
|
1,035
|
2017
|
4
|
Thereafter
|
1,307
|
$4,480
|
Liability Derivatives
|
Derivatives not designated as hedging instruments under FASB guidance
|
Balance Sheet Location
|
2012
|
2011
|
||||||
Interest rate swaps – 2010 Swaps
|
Other long-term liabilities
|
$ | 7 | $ | 8 |
Derivatives not designated as hedging instruments under FASB guidance
|
Statement of Operations Location
|
2012
|
2011
|
||||||
Interest rate swaps – 2010 Swaps
|
Other expense (income)
|
$ | - | $ | (2 | ) | |||
Interest expense
|
$ | 4 | $ | 1 |
2012
|
2011
|
||
First Priority Senior Secured Floating Rate Notes
|
-
|
61
|
|
9 ½% Second Priority Notes
|
-
|
83
|
|
9¾% Second Priority Notes
|
-
|
140
|
|
Second Priority Senior Secured Floating Rate Notes
|
1
|
38
|
|
Senior Unsecured Term Loan
|
6
|
8
|
|
11% Senior Subordinated Notes
|
-
|
64
|
|
10 ¼% Senior Subordinated Notes
|
-
|
18
|
As of the end of fiscal 2012
|
||||||||||||||
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
Total
|
Impairment Loss
|
||||||||||
Indefinite-lived trademarks
|
$
|
-
|
$
|
-
|
$
|
220
|
$
|
220
|
$
|
-
|
||||
Goodwill
|
-
|
-
|
1,626
|
1,626
|
-
|
|||||||||
Definite lived intangibles
|
-
|
-
|
737
|
737
|
17
|
|||||||||
Property, plant, and equipment
|
-
|
-
|
1,216
|
1,216
|
3
|
|||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
3,799
|
$
|
3,799
|
$
|
20
|
||||
As of the end of fiscal 2011
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
Total
|
Impairment Loss
|
||||||||||||||||
Indefinite-lived trademarks
|
$ | - | $ | - | $ | 220 | $ | 220 | $ | - | ||||||||||
Goodwill
|
- | - | 1,595 | 1,595 | 165 | |||||||||||||||
Property, plant, and equipment
|
- | - | 1,250 | 1,250 | 35 | |||||||||||||||
Total
|
$ | - | $ | - | $ | 3,065 | $ | 3,065 | $ | 200 | ||||||||||
As of the end of fiscal 2010
|
|||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
Total
|
Impairment Loss
|
|||||||||||||||||
Indefinite-lived trademarks
|
$ | - | $ | - | $ | 220 | $ | 220 | $ | - | |||||||||||
Goodwill
|
- | - | 1,700 | 1,700 | - | ||||||||||||||||
Property, plant, and equipment
|
- | - | 1,146 | 1,146 | 19 | ||||||||||||||||
Total
|
$ | - | $ | - | $ | 3,066 | $ | 3,066 | $ | 19 |
2012
|
2011
|
Amortization Period
|
|||||||
Deferred financing fees
|
$ | 104 | $ | 104 |
Respective debt
|
||||
Accumulated amortization
|
(51 | ) | (39 | ) | |||||
Deferred financing fees, net
|
53 | 65 | |||||||
Goodwill
|
1,626 | 1,595 |
Indefinite lived
|
||||||
Customer relationships
|
1,153 | 1,178 |
11 – 20 years
|
||||||
Trademarks (indefinite lived)
|
220 | 220 |
Indefinite lived
|
||||||
Trademarks (definite lived)
|
69 | 66 |
8-15 years
|
||||||
Other intangibles
|
99 | 82 |
10-20 years
|
||||||
Accumulated amortization
|
(584 | ) | (502 | ) | |||||
Intangible assets, net
|
957 | 1,044 | |||||||
Total goodwill, intangible assets and deferred costs
|
$ | 2,636 | $ | 2,704 |
6. Lease and Other Commitments and Contingencies
|
Capital Leases
|
Operating Leases
|
|||||||
2013
|
$ | 24 | $ | 46 | ||||
2014
|
20 | 36 | ||||||
2015
|
22 | 32 | ||||||
2016
|
11 | 30 | ||||||
2017
|
4 | 26 | ||||||
Thereafter
|
6 | 119 | ||||||
87 | $ | 289 | ||||||
Less: amount representing interest
|
(17 | ) | ||||||
Present value of net minimum lease payments
|
$ | 70 |
2012
|
2011
|
|||||||
Employee compensation, payroll and other taxes
|
$ | 95 | $ | 101 | ||||
Interest
|
60 | 63 | ||||||
Rebates
|
68 | 60 | ||||||
Other
|
77 | 62 | ||||||
$ | 300 | $ | 286 |
2012
|
2011
|
|||||||
Lease retirement obligation
|
$ | 20 | $ | 20 | ||||
Sale-lease back deferred gain
|
34 | 35 | ||||||
Pension liability
|
84 | 79 | ||||||
Other
|
28 | 36 | ||||||
$ | 166 | $ | 170 |
2012
|
2011
|
2010
|
||||||||||
Current
|
||||||||||||
United States
|
||||||||||||
Federal
|
$ | (3 | ) | $ | - | $ | - | |||||
State
|
- | 1 | 3 | |||||||||
Non-U.S.
|
4 | 3 | - | |||||||||
Current income tax provision
|
1 | 4 | 3 | |||||||||
Deferred:
|
||||||||||||
United States
|
||||||||||||
Federal
|
3 | (57 | ) | (38 | ) | |||||||
State
|
(1 | ) | 7 | (11 | ) | |||||||
Non-U.S.
|
(1 | ) | (1 | ) | (3 | ) | ||||||
Deferred income tax expense (benefit)
|
1 | (51 | ) | (52 | ) | |||||||
Expense (benefit) for income taxes
|
$ | 2 | $ | (47 | ) | $ | (49 | ) |
2012
|
2011
|
2010
|
||||||||||
U.S. Federal income tax benefit at the statutory rate
|
$ | 1 | $ | (121 | ) | $ | (57 | ) | ||||
Adjustments to reconcile to the income tax provision:
|
||||||||||||
U.S. State income tax expense, net of valuation allowance
|
(1 | ) | 8 | (8 | ) | |||||||
Impairment of goodwill
|
- | 58 | - | |||||||||
Permanent differences
|
1 | 1 | 2 | |||||||||
Transaction costs
|
- | 1 | 3 | |||||||||
Changes in foreign valuation allowance
|
1 | 3 | 3 | |||||||||
Rate differences between U.S. and foreign
|
1 | 1 | 4 | |||||||||
Other
|
(1 | ) | 2 | 4 | ||||||||
Expense (benefit) for income taxes
|
$ | 2 | $ | (47 | ) | $ | (49 | ) |
2012
|
2011
|
|||||||
Deferred tax assets:
|
||||||||
Allowance for doubtful accounts
|
$ | 4 | $ | 4 | ||||
Deferred gain on sale-leaseback
|
15 | 15 | ||||||
Accrued liabilities and reserves
|
60 | 58 | ||||||
Inventories
|
8 | 8 | ||||||
Net operating loss carryforward
|
393 | 406 | ||||||
Alternative minimum tax (AMT) credit carryforward
|
9 | 8 | ||||||
Other
|
6 | 15 | ||||||
Total deferred tax assets
|
495 | 514 | ||||||
Valuation allowance
|
(51 | ) | (43 | ) | ||||
Total deferred tax assets, net of valuation allowance
|
444 | 471 | ||||||
Deferred tax liabilities:
|
||||||||
Property and equipment
|
190 | 143 | ||||||
Intangible assets
|
322 | 347 | ||||||
Debt extinguishment
|
132 | 132 | ||||||
Other
|
1 | 4 | ||||||
Total deferred tax liabilities
|
645 | 626 | ||||||
Net deferred tax liability
|
$ | (201 | ) | $ | (155 | ) |
2012
|
2011
|
|||||||
Beginning unrecognized tax benefits
|
$ | 33 | $ | 34 | ||||
Gross increases – tax positions in prior periods
|
2 | 3 | ||||||
Gross decreases – tax positions in prior periods
|
(25 | ) | (4 | ) | ||||
Gross increases – from acquisitions
|
- | 2 | ||||||
Gross increases – current period tax positions
|
- | 1 | ||||||
Settlements
|
- | (2 | ) | |||||
Lapse of statute of limitations
|
(2 | ) | (1 | ) | ||||
Ending unrecognized tax benefits
|
$ | 8 | $ | 33 |
Defined Benefit Pension Plans
|
Retiree Health Plan
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Change in Projected Benefit Obligations (PBO)
|
||||||||||||||||
PBO at beginning of period
|
$ | 179 | $ | 175 | $ | 4 | $ | 4 | ||||||||
Service cost
|
- | - | - | - | ||||||||||||
Interest cost
|
8 | 8 | - | - | ||||||||||||
Actuarial loss (gain)
|
29 | 4 | - | - | ||||||||||||
Benefits paid
|
(9 | ) | (8 | ) | (1 | ) | - | |||||||||
PBO at end of period
|
$ | 207 | $ | 179 | $ | 3 | $ | 4 | ||||||||
Change in Fair Value of Plan Assets
|
||||||||||||||||
Plan assets at beginning of period
|
$ | 109 | $ | 112 | $ | - | $ | - | ||||||||
Actual return on plan assets
|
20 | (2 | ) | - | - | |||||||||||
Company contributions
|
9 | 7 | 1 | - | ||||||||||||
Benefits paid
|
(9 | ) | (8 | ) | (1 | ) | - | |||||||||
Plan assets at end of period
|
129 | 109 | - | - | ||||||||||||
Net amount recognized
|
$ | (78 | ) | $ | (70 | ) | $ | (3 | ) | $ | (4 | ) |
Defined Benefit Pension Plans
|
Retiree Health Plan
|
|||||||||||||||
(Percents)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Weighted-average assumptions:
|
||||||||||||||||
Discount rate for benefit obligation
|
3.6 | 4.4 | 2.4 | 4.5 | ||||||||||||
Discount rate for net benefit cost
|
4.4 | 4.8 | 4.5 | 5.0 | ||||||||||||
Expected return on plan assets for net benefit costs
|
8.0 | 8.0 | 8.0 | 8.0 |
Fiscal 2012 Asset Category
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Cash and cash equivalents
|
$ | 4 | $ | - | $ | - | $ | 4 | ||||||||
U.S. large cap comingled equity funds
|
- | 40 | - | 40 | ||||||||||||
U.S. mid cap equity mutual funds
|
13 | - | - | 13 | ||||||||||||
U.S. small cap equity mutual funds
|
7 | - | - | 7 | ||||||||||||
International equity mutual funds
|
13 | - | - | 13 | ||||||||||||
Real estate equity investment funds
|
4 | - | - | 4 | ||||||||||||
Corporate bond mutual funds
|
- | 37 | - | 37 | ||||||||||||
Guaranteed investment account
|
- | - | 11 | 11 | ||||||||||||
Other
|
- | - | - | - | ||||||||||||
Total
|
$ | 41 | $ | 77 | $ | 11 | $ | 129 |
Fiscal 2011 Asset Category
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Cash and cash equivalents
|
$ | 4 | $ | - | $ | - | $ | 4 | ||||||||
U.S. large cap comingled equity funds
|
- | 28 | - | 28 | ||||||||||||
U.S. mid cap equity mutual funds
|
10 | - | - | 10 | ||||||||||||
U.S. small cap equity mutual funds
|
5 | - | - | 5 | ||||||||||||
International equity mutual funds
|
11 | - | - | 11 | ||||||||||||
Real estate equity investment funds
|
3 | - | - | 3 | ||||||||||||
Corporate bond mutual funds
|
- | 30 | - | 30 | ||||||||||||
Guaranteed investment account
|
- | - | 12 | 12 | ||||||||||||
Other
|
6 | - | - | 6 | ||||||||||||
Total
|
$ | 39 | $ | 58 | $ | 12 | $ | 109 |
Defined Benefit Pension Plans
|
Retiree Health Plan
|
|||||||
2013
|
$ | 10 | $ | 1 | ||||
2014
|
10 | - | ||||||
2015
|
10 | - | ||||||
2016
|
10 | - | ||||||
2017
|
10 | - | ||||||
2018-2022
|
55 | 1 |
2012
|
2011
|
|||||||
Defined Benefit Pension Plans
|
||||||||
Service cost
|
$ | - | $ | - | ||||
Interest cost
|
8 | 9 | ||||||
Amortization
|
2 | 1 | ||||||
Expected return on plan assets
|
(8 | ) | (9 | ) | ||||
Net periodic benefit cost
|
$ | 2 | $ | 1 |
2012
|
2011
|
|||||||
Asset Category
|
||||||||
Equity securities and equity-like instruments
|
59 | % | 53 | % | ||||
Debt securities
|
29 | 32 | ||||||
Other
|
12 | 15 | ||||||
Total
|
100 | % | 100 | % |
Expected Total Costs
|
Cumulative charges through Fiscal 2012
|
To be Recognized in Future
|
||||||||||
Severance and termination benefits
|
$ | 34 | $ | 34 | $ | - | ||||||
Facility exit costs
|
52 | 50 | 2 | |||||||||
Asset impairment
|
100 | 100 | - | |||||||||
Other
|
4 | 4 | - | |||||||||
Total
|
$ | 190 | $ | 188 | $ | 2 |
Fiscal Year
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Rigid Open Top
|
||||||||||||
Severance & termination benefits
|
$ | - | $ | 2 | $ | - | ||||||
Facility exit costs
|
- | - | 2 | |||||||||
Total
|
$ | - | $ | 2 | $ | 2 | ||||||
Rigid Closed Top
|
||||||||||||
Severance & termination benefits
|
$ | 3 | $ | 3 | $ | - | ||||||
Facility exit costs
|
2 | 1 | 3 | |||||||||
Non-cash asset impairment
|
4 | 4 | - | |||||||||
Total
|
$ | 9 | $ | 8 | $ | 3 | ||||||
Engineered Materials
|
||||||||||||
Severance & termination benefits
|
$ | 4 | $ | 2 | $ | - | ||||||
Facility exit costs
|
2 | 7 | 4 | |||||||||
Non-cash asset impairment
|
16 | 22 | 9 | |||||||||
Total
|
$ | 22 | $ | 31 | $ | 13 | ||||||
Flexible Packaging
|
||||||||||||
Severance & termination benefits
|
$ | - | $ | 4 | $ | 7 | ||||||
Facility exit costs
|
- | 2 | 6 | |||||||||
Non-cash asset impairment
|
- | 9 | 10 | |||||||||
Total
|
$ | - | $ | 15 | $ | 23 | ||||||
Consolidated
|
||||||||||||
Severance & termination benefits
|
$ | 7 | $ | 11 | $ | 7 | ||||||
Facility exit costs
|
4 | 10 | 15 | |||||||||
Non-cash asset impairment
|
20 | 35 | 19 | |||||||||
Total
|
$ | 31 | $ | 56 | $ | 41 |
Employee
Severance
and Benefits
|
Facility
Exit
Costs
|
Non-cash charges
|
Total
|
|||||||||||||
Balance as of fiscal 2010
|
$ | 3 | $ | 3 | $ | - | $ | 6 | ||||||||
Charges
|
11 | 10 | 35 | 56 | ||||||||||||
Non-cash asset impairment
|
- | - | (35 | ) | (35 | ) | ||||||||||
Cash payments
|
(10 | ) | (10 | ) | - | (20 | ) | |||||||||
Balance as of fiscal 2011
|
4 | 3 | - | 7 | ||||||||||||
Charges
|
7 | 4 | 20 | 31 | ||||||||||||
Non-cash asset impairment
|
- | - | (20 | ) | (20 | ) | ||||||||||
Cash payments
|
(7 | ) | (4 | ) | - | (11 | ) | |||||||||
Balance as of fiscal 2012
|
$ | 4 | $ | 3 | $ | - | $ | 7 |
2012
|
2011
|
|||||||||||||||
Number
Of
Shares
|
Weighted
Average
Exercise
Price
|
Number
Of
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||
Options outstanding, beginning of period
|
10,826,232 | $ | 7.70 | 10,614,883 | $ | 7.78 | ||||||||||
Options granted
|
695,898 | 10.57 | 1,552,418 | 6.13 | ||||||||||||
Options exercised or cash settled
|
(175,412 | ) | 7.33 | - | - | |||||||||||
Options forfeited or cancelled
|
(605,628 | ) | 7.43 | (1,341,069 | ) | 7.94 | ||||||||||
Options outstanding, end of period
|
10,741,090 | $ | 7.76 | 10,826,232 | $ | 7.70 | ||||||||||
Option price range at end of period
|
$ | 3.04-15.04 | $ | 3.04-9.21 | ||||||||||||
Options exercisable at end of period
|
7,327,612 | 7,318,346 | ||||||||||||||
Options available for grant at period end
|
1,597,240 | 1,512,606 | ||||||||||||||
Weighted average fair value of options granted during period
|
$ | 2.71 | $ | 1.88 |
2012
|
2011
|
2010
|
||||||||||
Risk-free interest rate
|
.6 - .9 | % | 1.30 | % | 2.60 | % | ||||||
Dividend yield
|
0.00 | % | 0.00 | % | 0.00 | % | ||||||
Volatility factor
|
0.38 | .32 - .34 | 0.33 | |||||||||
Expected option life
|
5 years
|
5 years
|
5 years
|
Range of
Exercise
Prices
|
Number
Outstanding
|
Weighted Average
Remaining Contractual
Life
|
Weighted
Average
Exercise
Price
|
Number
Exercisable
|
$3.04 - $15.04
|
10,741,090
|
5 years
|
$7.76
|
7,327,612
|
2012
|
2011
|
2010
|
||||||||||
Net sales
|
||||||||||||
Rigid Open Top
|
$ | 1,229 | $ | 1,261 | $ | 1,160 | ||||||
Rigid Closed Top
|
1,438 | 1,053 | 970 | |||||||||
Engineered Materials
|
1,362 | 1,451 | 1,457 | |||||||||
Flexible Packaging
|
737 | 796 | 670 | |||||||||
Total
|
$ | 4,766 | $ | 4,561 | $ | 4,257 | ||||||
Operating income (loss)
|
||||||||||||
Rigid Open Top
|
$ | 159 | $ | 155 | $ | 124 | ||||||
Rigid Closed Top
|
95 | 77 | 73 | |||||||||
Engineered Materials
|
70 | (71 | ) | 4 | ||||||||
Flexible Packaging
|
1 | (119 | ) | (77 | ) | |||||||
Total
|
$ | 325 | $ | 42 | $ | 124 | ||||||
Depreciation and amortization
|
||||||||||||
Rigid Open Top
|
$ | 90 | $ | 102 | $ | 93 | ||||||
Rigid Closed Top
|
135 | 95 | 91 | |||||||||
Engineered Materials
|
71 | 72 | 72 | |||||||||
Flexible Packaging
|
59 | 75 | 61 | |||||||||
Total
|
$ | 355 | $ | 344 | $ | 317 | ||||||
Total assets
|
2012
|
2011
|
||||||
Rigid Open Top
|
$ | 1,773 | $ | 1,818 | ||||
Rigid Closed Top
|
1,959 | 1,963 | ||||||
Engineered Materials
|
873 | 841 | ||||||
Flexible Packaging
|
501 | 595 | ||||||
$ | 5,106 | $ | 5,217 | |||||
Goodwill
|
2012
|
2011
|
||||||
Rigid Open Top
|
$ | 681 | $ | 681 | ||||
Rigid Closed Top
|
832 | 819 | ||||||
Engineered Materials
|
73 | 55 | ||||||
Flexible Packaging
|
40 | 40 | ||||||
$ | 1,626 | $ | 1,595 |
2012
|
2011
|
2010
|
||||||||||
Net income (loss)
|
$ | 2 | $ | (299 | ) | $ | (113 | ) | ||||
Weighted average shares of common stock outstanding--basic
|
83,435 | 84,121 | 84,525 | |||||||||
Weighted average shares of common stock outstanding
|
83,435 | 84,121 | 84,525 | |||||||||
Other common stock equivalents
|
3,209 | - | - | |||||||||
Weighted average shares of common stock outstanding--diluted
|
86,644 | 84,121 | 84,525 | |||||||||
Basic net income (loss) per share
|
||||||||||||
Basic net income (loss) per share from continuing operations
|
$ | 0.02 | $ | (3.55 | ) | $ | (1.34 | ) | ||||
Basic net income (loss) per share available to common shareholders
|
$ | 0.02 | $ | (3.55 | ) | $ | (1.34 | ) | ||||
Diluted net income (loss) per share
|
||||||||||||
Diluted net income (loss) per share from continuing operations
|
$ | 0.02 | $ | (3.55 | ) | $ | (1.34 | ) | ||||
Diluted net income (loss) per share available to common shareholders
|
$ | 0.02 | $ | (3.55 | ) | $ | (1.34 | ) |
Fiscal 2012
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | - | $ | 579 | $ | 3,829 | $ | 358 | $ | - | $ | 4,766 | ||||||||||||
Cost of sales
|
- | 501 | 3,144 | 304 | - | 3,949 | ||||||||||||||||||
Selling, general and administrative expenses
|
- | 53 | 329 | 35 | - | 417 | ||||||||||||||||||
Restructuring and impairment charges, net
|
- | 1 | 29 | 1 | - | 31 | ||||||||||||||||||
Other operating expenses
|
- | 28 | 7 | 9 | - | 44 | ||||||||||||||||||
Operating income (loss)
|
- | (4 | ) | 320 | 9 | - | 325 | |||||||||||||||||
Other income
|
- | (7 | ) | - | - | - | (7 | ) | ||||||||||||||||
Interest expense, net
|
54 | 39 | 261 | (110 | ) | 84 | 328 | |||||||||||||||||
Equity in net income of subsidiaries
|
(58 | ) | (173 | ) | - | - | 231 | - | ||||||||||||||||
Net income (loss) before income taxes
|
4 | 137 | 59 | 119 | (315 | ) | 4 | |||||||||||||||||
Income tax expense (benefit)
|
2 | 46 | 1 | 3 | (50 | ) | 2 | |||||||||||||||||
Net income (loss)
|
$ | 2 | $ | 91 | $ | 58 | $ | 116 | $ | (265 | ) | $ | 2 | |||||||||||
Currency translation
|
- | - | - | 6 | - | 6 | ||||||||||||||||||
Interest rate hedges
|
- | 4 | - | - | - | 4 | ||||||||||||||||||
Defined benefit pension and retiree benefit plans
|
- | - | (14 | ) | - | - | (14 | ) | ||||||||||||||||
Provision for income taxes realted to other comprehensive income items
|
- | (1 | ) | 6 | - | - | 5 | |||||||||||||||||
Comprehensive income (loss)
|
$ | 2 | $ | 94 | $ | 50 | $ | 122 | $ | (265 | ) | $ | 3 |
Fiscal 2011
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | - | $ | 695 | $ | 3,503 | $ | 363 | $ | - | $ | 4,561 | ||||||||||||
Cost of sales
|
- | 626 | 2,937 | 315 | - | 3,878 | ||||||||||||||||||
Selling, general and administrative expenses
|
- | 56 | 295 | 30 | - | 381 | ||||||||||||||||||
Restructuring and impairment charges, net
|
- | 30 | 190 | 1 | - | 221 | ||||||||||||||||||
Other operating expenses
|
- | - | 11 | 28 | - | 39 | ||||||||||||||||||
Operating income (loss)
|
- | (17 | ) | 70 | (11 | ) | - | 42 | ||||||||||||||||
Other income
|
- | 62 | (1 | ) | - | - | 61 | |||||||||||||||||
Interest expense, net
|
50 | 49 | 249 | (77 | ) | 56 | 327 | |||||||||||||||||
Equity in net income of subsidiaries
|
296 | 85 | - | - | (381 | ) | - | |||||||||||||||||
Net income (loss) before income taxes
|
(346 | ) | (213 | ) | (178 | ) | 66 | 325 | (346 | ) | ||||||||||||||
Income tax expense (benefit)
|
(47 | ) | 16 | (29 | ) | 2 | 11 | (47 | ) | |||||||||||||||
Net income (loss)
|
$ | (299 | ) | $ | (229 | ) | $ | (149 | ) | $ | 64 | $ | 314 | $ | (299 | ) | ||||||||
Currency translation
|
- | - | - | (10 | ) | - | (10 | ) | ||||||||||||||||
Interest rate hedges
|
- | (8 | ) | - | - | - | (8 | ) | ||||||||||||||||
Defined benefit pension and retiree benefit plans
|
- | - | (14 | ) | - | - | (14 | ) | ||||||||||||||||
Provision for income taxes related to other comprehensive income taxes
|
- | 2 | 5 | - | - | 7 | ||||||||||||||||||
Comprehensive income (loss)
|
$ | (299 | ) | $ | (235 | ) | $ | (158 | ) | $ | 54 | $ | 314 | $ | (324 | ) |
Fiscal 2010
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Net sales
|
$ | - | $ | 758 | $ | 3,166 | $ | 333 | $ | - | $ | 4,257 | ||||||||||||
Cost of sales
|
- | 709 | 2,666 | 292 | - | 3,667 | ||||||||||||||||||
Selling, general and administrative expenses
|
- | 63 | 285 | 31 | - | 379 | ||||||||||||||||||
Restructuring and impairment charges, net
|
- | 15 | 24 | 2 | - | 41 | ||||||||||||||||||
Other operating expenses
|
- | 12 | 17 | 17 | - | 46 | ||||||||||||||||||
Operating income (loss)
|
- | (41 | ) | 174 | (9 | ) | - | 124 | ||||||||||||||||
Other income
|
- | (19 | ) | - | - | (8 | ) | (27 | ) | |||||||||||||||
Interest expense, net
|
48 | 54 | 229 | (51 | ) | 33 | 313 | |||||||||||||||||
Equity in net income of subsidiaries
|
114 | - | - | - | (114 | ) | - | |||||||||||||||||
Net income (loss) before income taxes
|
(162 | ) | (76 | ) | (55 | ) | 42 | 89 | (162 | ) | ||||||||||||||
Income tax expense (benefit)
|
(49 | ) | (8 | ) | (17 | ) | 4 | 21 | (49 | ) | ||||||||||||||
Net income (loss)
|
$ | (113 | ) | $ | (68 | ) | $ | (38 | ) | $ | 38 | $ | 68 | $ | (113 | ) | ||||||||
Currency translation
|
- | - | - | 6 | - | 6 | ||||||||||||||||||
Interest rate hedges
|
- | - | - | - | - | - | ||||||||||||||||||
Defined benefit pension and retiree benefit plans
|
- | - | (12 | ) | - | - | (12 | ) | ||||||||||||||||
Provision for income taxes related to other comprehensive income items
|
- | - | 7 | - | - | 7 | ||||||||||||||||||
Comprehensive income (loss)
|
$ | (113 | ) | $ | (68 | ) | $ | (43 | ) | $ | 44 | $ | 68 | $ | (112 | ) |
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 66 | $ | - | $ | 21 | $ | - | $ | 87 | ||||||||||||
Accounts receivable, net of allowance
|
- | 60 | 336 | 59 | - | 455 | ||||||||||||||||||
Intercompany receivable
|
243 | 3,800 | 74 | - | (4,117 | ) | - | |||||||||||||||||
Inventories
|
- | 83 | 414 | 38 | - | 535 | ||||||||||||||||||
Prepaid expenses and other current
|
120 | 17 | 9 | 21 | (11 | ) | 156 | |||||||||||||||||
Total current assets
|
363 | 4,026 | 833 | 139 | (4,128 | ) | 1,233 | |||||||||||||||||
Property, plant and equipment, net
|
- | 113 | 1,023 | 80 | - | 1,216 | ||||||||||||||||||
Intangible assets, net
|
8 | 184 | 2,343 | 111 | (10 | ) | 2,636 | |||||||||||||||||
Investment in subsidiaries
|
254 | 615 | - | - | (869 | ) | - | |||||||||||||||||
Other assets
|
- | 10 | 10 | 638 | (637 | ) | 21 | |||||||||||||||||
Total assets
|
$ | 625 | $ | 4,948 | $ | 4,209 | $ | 968 | $ | (5,644 | ) | $ | 5,106 | |||||||||||
Liabilities and equity
|
||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||
Accounts payable
|
$ | - | $ | 84 | $ | 195 | $ | 27 | $ | - | $ | 306 | ||||||||||||
Accrued and other current liabilities
|
18 | 159 | 120 | 16 | (13 | ) | 300 | |||||||||||||||||
Intercompany payable
|
- | - | 3,966 | 151 | (4,117 | ) | - | |||||||||||||||||
Long-term debt-current portion
|
- | 35 | - | 5 | - | 40 | ||||||||||||||||||
Total current liabilities
|
18 | 278 | 4,281 | 199 | (4,130 | ) | 646 | |||||||||||||||||
Long-term debt
|
736 | 4,542 | - | 3 | (850 | ) | 4,431 | |||||||||||||||||
Deferred tax liabilities
|
315 | - | - | - | - | 315 | ||||||||||||||||||
Other long-term liabilities
|
8 | 37 | 119 | 5 | (3 | ) | 166 | |||||||||||||||||
Total long-term liabilities
|
1,059 | 4,579 | 119 | 8 | (853 | ) | 4,912 | |||||||||||||||||
Total liabilities
|
1,077 | 4,857 | 4,400 | 207 | (4,983 | ) | 5,558 | |||||||||||||||||
Redeemable shares
|
23 | - | - | - | 23 | |||||||||||||||||||
Total equity
|
(475 | ) | 91 | (191 | ) | 761 | (661 | ) | (475 | ) | ||||||||||||||
Total liabilities and equity
|
$ | 625 | $ | 4,948 | $ | 4,209 | $ | 968 | $ | (5,644 | ) | $ | 5,106 |
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 20 | $ | 5 | $ | 17 | $ | - | $ | 42 | ||||||||||||
Accounts receivable, net of allowance
|
- | 80 | 411 | 52 | - | 543 | ||||||||||||||||||
Intercompany receivable
|
159 | 4,078 | - | - | (4,237 | ) | - | |||||||||||||||||
Inventories
|
- | 98 | 445 | 35 | - | 578 | ||||||||||||||||||
Prepaid expenses and other current
|
62 | 10 | 9 | 11 | - | 92 | ||||||||||||||||||
Total current assets
|
221 | 4,286 | 870 | 115 | (4,237 | ) | 1,255 | |||||||||||||||||
Property, plant and equipment, net
|
- | 129 | 1,048 | 73 | - | 1,250 | ||||||||||||||||||
Intangible assets, net
|
5 | 207 | 2,447 | 52 | (7 | ) | 2,704 | |||||||||||||||||
Investment in subsidiaries
|
282 | 417 | - | - | (699 | ) | - | |||||||||||||||||
Other assets
|
- | - | 7 | 511 | (510 | ) | 8 | |||||||||||||||||
Total assets
|
$ | 508 | $ | 5,039 | $ | 4,372 | $ | 751 | $ | (5,453 | ) | $ | 5,217 | |||||||||||
Liabilities and equity
|
||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||
Accounts payable
|
$ | - | $ | 98 | $ | 231 | $ | 23 | $ | - | $ | 352 | ||||||||||||
Accrued and other current liabilities
|
12 | 147 | 126 | 13 | (12 | ) | 286 | |||||||||||||||||
Intercompany payable
|
- | - | 4,167 | 70 | (4,237 | ) | - | |||||||||||||||||
Long-term debt-current portion
|
- | 32 | - | 2 | 12 | 46 | ||||||||||||||||||
Total current liabilities
|
12 | 277 | 4,524 | 108 | (4,237 | ) | 684 | |||||||||||||||||
Long-term debt
|
697 | 4,688 | - | 3 | (807 | ) | 4,581 | |||||||||||||||||
Deferred tax liabilities
|
233 | - | - | - | - | 233 | ||||||||||||||||||
Other long-term liabilities
|
17 | 68 | 97 | 5 | (17 | ) | 170 | |||||||||||||||||
Total long-term liabilities
|
947 | 4,756 | 97 | 8 | (824 | ) | 4,984 | |||||||||||||||||
Total liabilities
|
959 | 5,033 | 4,621 | 116 | (5,061 | ) | 5,668 | |||||||||||||||||
Redeemable shares
|
16 | - | - | - | 16 | |||||||||||||||||||
Total equity
|
(467 | ) | 6 | (249 | ) | 635 | (392 | ) | (467 | ) | ||||||||||||||
Total liabilities and equity
|
$ | 508 | $ | 5,039 | $ | 4,372 | $ | 751 | $ | (5,453 | ) | $ | 5,217 |
Fiscal 2012
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Cash Flow from Operating Activities
|
$ | - | $ | (22 | ) | $ | 504 | $ | (3 | ) | $ | - | $ | 479 | ||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
- | (9 | ) | (209 | ) | (12 | ) | - | (230 | ) | ||||||||||||||
Proceeds from disposal of assets
|
- | - | 30 | - | - | 30 | ||||||||||||||||||
Investment in Parent
|
- | - | - | (4 | ) | 4 | -- | |||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
16 | (20 | ) | - | - | 4 | - | |||||||||||||||||
Intercompany advances (repayments)
|
- | 258 | - | - | (258 | ) | - | |||||||||||||||||
Investment in Issuer debt securities
|
- | - | - | - | - | - | ||||||||||||||||||
Acquisition of business net of cash acquired
|
- | - | 7 | (62 | ) | - | (55 | ) | ||||||||||||||||
Net cash used in investing activities
|
16 | 229 | (172 | ) | (78 | ) | (250 | ) | (255 | ) | ||||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term debt
|
- | - | - | 2 | - | 2 | ||||||||||||||||||
Equity contributions
|
- | (6 | ) | - | - | - | (6 | ) | ||||||||||||||||
Repayment of long-term debt
|
(16 | ) | (155 | ) | - | - | (4 | ) | (175 | ) | ||||||||||||||
Changes in intercompany balances
|
- | - | (337 | ) | 79 | 258 | - | |||||||||||||||||
Contribution from Parent
|
- | - | - | 4 | (4 | ) | - | |||||||||||||||||
Deferred financing costs
|
- | - | - | - | - | - | ||||||||||||||||||
Net cash provided by (used in) financing activities
|
(16 | ) | (161 | ) | (337 | ) | 85 | 250 | (179 | ) | ||||||||||||||
Net increase in cash and cash equivalents
|
- | 46 | (5 | ) | 4 | - | 45 | |||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 20 | 5 | 17 | - | 42 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 66 | $ | - | $ | 21 | $ | - | $ | 87 |
Fiscal 2011
|
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
Cash Flow from Operating Activities
|
$ | 2 | $ | 15 | $ | 322 | $ | (11 | ) | $ | (1 | ) | $ | 327 | ||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
- | (16 | ) | (138 | ) | (6 | ) | - | (160 | ) | ||||||||||||||
Proceeds from disposal of assets
|
- | - | 5 | - | - | 5 | ||||||||||||||||||
Investment in Parent
|
- | - | - | - | - | -- | ||||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
- | (39 | ) | - | - | 39 | - |
- | 166 | - | - | (166 | ) | - | ||||||||||||||||||
Investment in Issuer debt securities
|
- | - | - | (39 | ) | 39 | - | |||||||||||||||||
Acquisition of business net of cash acquired
|
- | (368 | ) | - | - | - | (368 | ) | ||||||||||||||||
Net cash used in investing activities
|
- | (257 | ) | (133 | ) | (45 | ) | (88 | ) | (523 | ) | |||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term debt
|
- | 995 | - | - | - | 995 | ||||||||||||||||||
Equity contributions
|
(2 | ) | (1 | ) | - | - | 1 | (2 | ) | |||||||||||||||
Repayment of long-term debt
|
- | (841 | ) | - | - | (39 | ) | (880 | ) | |||||||||||||||
Changes in intercompany balances
|
- | - | (186 | ) | 20 | 166 | - | |||||||||||||||||
Contribution from Parent
|
- | - | - | 39 | (39 | ) | - | |||||||||||||||||
Deferred financing costs
|
- | (23 | ) | - | - | - | (23 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities
|
(2 | ) | 130 | (186 | ) | 59 | 89 | 90 | ||||||||||||||||
Net increase in cash and cash equivalents
|
- | (112 | ) | 3 | 3 | - | (106 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 132 | 2 | 14 | - | 148 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 20 | $ | 5 | $ | 17 | $ | - | $ | 42 |
Fiscal 2010
|
||||||||||||||||||||||||
Parent
|
Issuer
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Total
|
|||||||||||||||||||
Cash Flow from Operating Activities
|
$ | 3 | $ | 37 | $ | 100 | $ | (25 | ) | $ | (3 | ) | $ | 112 | ||||||||||
Cash Flow from Investing Activities
|
||||||||||||||||||||||||
Additions to property, plant, and equipment
|
- | (61 | ) | (150 | ) | (12 | ) | - | (223 | ) | ||||||||||||||
Proceeds from disposal of assets
|
- | - | 29 | - | - | 29 | ||||||||||||||||||
Investment in Parent
|
- | - | - | (25 | ) | 25 | -- | |||||||||||||||||
(Contributions) distributions to/from subsidiaries
|
- | (81 | ) | - | - | 81 | - | |||||||||||||||||
Intercompany advances (repayments)
|
- | (71 | ) | - | - | 71 | - | |||||||||||||||||
Investment in Issuer debt securities
|
- | - | - | (56 | ) | 56 | - | |||||||||||||||||
Acquisition of business net of cash acquired
|
- | (658 | ) | - | - | - | (658 | ) | ||||||||||||||||
Net cash used in investing activities
|
- | (871 | ) | (121 | ) | (93 | ) | 233 | (852 | ) | ||||||||||||||
Cash Flow from Financing Activities
|
||||||||||||||||||||||||
Proceeds from long-term debt
|
- | 1,097 | - | - | - | 1,097 | ||||||||||||||||||
Equity contributions
|
(3 | ) | (3 | ) | - | - | 3 | (3 | ) | |||||||||||||||
Repayment of long-term debt
|
- | (97 | ) | - | - | (81 | ) | (178 | ) | |||||||||||||||
Changes in intercompany balances
|
- | - | 23 | 48 | (71 | ) | - | |||||||||||||||||
Contribution from Parent
|
- | - | - | 81 | (81 | ) | - | |||||||||||||||||
Deferred financing costs
|
- | (38 | ) | - | - | - | (38 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities
|
(3 | ) | 959 | 23 | 129 | (230 | ) | 878 | ||||||||||||||||
Net increase in cash and cash equivalents
|
- | 125 | 2 | 11 | - | 138 | ||||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 7 | - | 3 | - | 10 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 132 | $ | 2 | $ | 14 | $ | - | $ | 148 |
2012
|
2011
|
|||||||||||||||||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
First (b)
|
Second
|
Third
|
Fourth (a)
|
|||||||||||||||||||||||||
Net sales
|
$ | 1,137 | $ | 1,183 | $ | 1,242 | $ | 1,204 | $ | 1,041 | $ | 1,104 | $ | 1,187 | $ | 1,229 | ||||||||||||||||
Cost of sales
|
972 | 972 | 1,028 | 977 | 902 | 939 | 1,000 | 1,037 | ||||||||||||||||||||||||
Gross profit
|
165 | 211 | 214 | 227 | 139 | 165 | 187 | 192 | ||||||||||||||||||||||||
Net income (loss)
|
$ | (31 | ) | $ | 2 | $ | 9 | $ | 22 | $ | (83 | ) | $ | (19 | ) | $ | (5 | ) | $ | (192 | ) |
|
||
Signature
|
Title
|
Date
|
/s/ Jonathan D. Rich
|
Chairman of the Board of Directors, Chief Executive Officer and Director (Principal Executive Officer)
|
December 17, 2012
|
Jonathan D. Rich
|
||
/s/ James M. Kratochvil
|
Chief Financial Officer (Principal Financial and Accounting Officer)
|
December 17, 2012
|
James M. Kratochvil
|
||
/s/ Robert V. Seminara
|
Director
|
December 17, 2012
|
Robert V. Seminara
|
||
/s/ Anthony M. Civale
|
Director
|
December 17, 2012
|
Anthony M. Civale
|
||
/s/ Donald C. Graham
|
Director
|
December 17, 2012
|
Donald C. Graham
|
||
/s/ Steven C. Graham
|
Director
|
December 17, 2012
|
Steven C. Graham
|
||
/s/ B. Evan Bayh
|
Director
|
December 17, 2012
|
B. Evan Bayh
|
||
/s/ Joshua J. Harris
|
Director
|
December 17, 2012
|
Joshua J. Harris
|
||
/s/ David B. Heller
|
Director
|
December 17, 2012
|
David B. Heller
|
||
Exhibit No.
|
Description of Exhibit
|
|||||
3.1* | Amended and Restated Certificate of Berry Plastics Group, Inc. | |||||
3.2* | Bylaws, as amended, of Berry Plastics Group, Inc. | |||||
4.1
|
Supplemental Indenture, dated November 19, 2010, to the Indenture dated as of September 20, 2006, respecting the 8 7/8% Second Priority Senior Secured Fixed Rate Notes due 2014, among Berry Plastics Corporation, the guarantors party thereto and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.01 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on November 19, 2010).
|
|||||
4.2
|
Supplemental Indenture, dated November 19, 2010, to the Indenture dated as of November 12, 2009, respecting the 8 7/8% Second Priority Senior Secured Notes due 2014, among Berry Plastics Corporation, the guarantors party thereto and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.02 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on November 19, 2010).
|
|||||
4.3
|
Indenture, by and among Berry Plastics Corporation, each Subsidiary of Berry Plastics Corporation identified therein and U.S. Bank National Association, as Trustee, relating to 9.75% second priority senior secured notes due 2021, dated November 19, 2010 (incorporated herein by reference to Exhibit 4.03 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on November 19, 2010).
|
|||||
4.4
|
Additional Secured Creditor Consent, by and between Berry Plastics Corporation, each Subsidiary of Berry Plastics Corporation signatory thereto and U.S. Bank National Association, as Authorized Representative and Collateral Agent, relating to 9.75% second priority senior secured notes due 2021, dated November 19, 2010 (incorporated herein by reference to Exhibit 4.04 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on November 19, 2010).
|
|||||
4.5
|
Registration Rights Agreement, by and between Berry Plastics Corporation, each Subsidiary of Berry Plastics Corporation identified therein and Credit Suisse Securities (USA) LLC, as representatives of the Initial Purchasers, relating to 9.75% second priority senior secured notes due 2021, dated November 19, 2010 (incorporated herein by reference to Exhibit 4.05 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on November 19, 2010).
|
|||||
4.6
|
Indenture, by and among Berry Plastics Corporation, each Subsidiary of Berry Plastics Corporation identified therein and U.S. Bank National Association, as Trustee, relating to 9 1 / 2 % second priority senior secured notes due 2018, dated April 30, 2010 (incorporated herein by reference to Exhibit 4.01 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on May 4, 2010).
|
|||||
4.7
|
Additional Secured Creditor Consent, by and between Berry Plastics Corporation, each Subsidiary of Berry Plastics Corporation signatory thereto and U.S. Bank National Association, as Authorized Representative and Collateral Agent, relating to 9 1 / 2 % second priority senior secured notes due 2018, dated April 30, 2010 (incorporated herein by reference to Exhibit 4.02 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on May 4, 2010).
|
|||||
4.8
|
Indenture, by and between Berry Plastics Escrow Corporation and Berry Plastics Escrow LLC, as Issuers, and U.S. Bank National Association, as Trustee, relating to 8 1/4% first priority senior secured notes due 2015, dated November 12, 2009 (incorporated herein by reference to Exhibit 4.01 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on December 8, 2009).
|
|||||
4.9
|
First Supplemental Indenture, dated as of December 3, 2009, by and between Berry Plastics Corporation, the subsidiaries of Berry Plastics Corporation party thereto, Berry Plastics Escrow LLC, Berry Plastics Escrow Corporation, and U.S. Bank National Association, as Trustee, relating to the Indenture, by and between Berry Plastics Escrow Corporation and Berry Plastics Escrow LLC, as Issuers, and U.S. Bank National Association, as Trustee, relating to 8 1/4% first priority senior secured notes due 2015, dated November 12, 2009 (incorporated herein by reference to Exhibit 4.02 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on December 8, 2009).
|
4.10
|
Indenture, by and between Berry Plastics Escrow Corporation and Berry Plastics Escrow LLC, as Issuers, and U.S. Bank National Association, as Trustee, relating to 8 7/8% second priority senior secured notes due 2014, dated November 12, 2009 (incorporated herein by reference to Exhibit 4.03 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on December 8, 2009).
|
|||||
4.11
|
First Supplemental Indenture, dated as of December 3, 2009, by and between Berry Plastics Corporation, the subsidiaries of Berry Plastics Corporation party thereto, Berry Plastics Escrow LLC, Berry Plastics Escrow Corporation, and U.S. Bank National Association, as Trustee, relating to the Indenture, by and between Berry Plastics Escrow Corporation and Berry Plastics Escrow LLC, as Issuers, and U.S. Bank National Association, as Trustee, relating to 8 7/8% second priority senior secured notes due 2014, dated November 12, 2009 (incorporated herein by reference to Exhibit 4.04 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on December 8, 2009).
|
|||||
4.12
|
Collateral Agreement, by and between Berry Plastics Corporation, each Subsidiary of Berry Plastics Corporation identified therein and U.S. Bank National Association, as Collateral Agent, relating to 8 1/4% first priority senior secured notes due 2015, dated December 3, 2009 (incorporated herein by reference to Exhibit 4.05 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on December 8, 2009).
|
|||||
4.13
|
Additional Secured Creditor Consent, by and between Berry Plastics Corporation, each Subsidiary of Berry Plastics Corporation signatory thereto and U.S. Bank National Association, as Authorized Representative and Collateral Agent, relating to 8 7/8% second priority senior secured notes due 2014, dated December 3, 2009 (incorporated herein by reference to Exhibit 4.06 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on December 8, 2009).
|
|||||
4.14
|
Indenture, by and between Berry Plastics Corporation, as Issuer, certain Guarantors and Wells Fargo Bank, National Association, as Trustee, relating to first priority floating rate senior secured notes due 2015, dated as of April 21, 2008 (incorporated herein by reference to Exhibit 4.1 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 22, 2008).
|
|||||
4.15
|
Collateral Agreement, by and between Berry Plastics Corporation, each Subsidiary of Berry Plastics Corporation identified therein and Wells Fargo Bank, National Association, as Collateral Agent, dated as of April 21, 2008 (incorporated herein by reference to Exhibit 4.2 to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 22, 2008).
|
|||||
4.16
|
Indenture, by and between BPC Acquisition Corp. (and following the merger of BPC Acquisition Corp. with and into BPC Holding Corporation, BPC Holding Corporation, as Issuer, and certain Guarantors) and Wells Fargo Bank, National Association, as Trustee, relating to 11% Senior Subordinated Notes due 2016, dated as of September 20, 2006 (incorporated herein by reference to Exhibit 10.4 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
4.17
|
First Supplemental Indenture, by and among BPC Holding Corporation, certain Guarantors, BPC Acquisition Corp., and Wells Fargo Bank, National Association, as Trustee, dated as of September 20, 2006 (incorporated herein by reference to Exhibit 10.5 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
4.18
|
Indenture, dated as of February 16, 2006, among Covalence Specialty Materials Corp., the Guarantors named therein and Wells Fargo Bank, National Association, as trustee (incorporated herein by reference to Exhibit 10.1(e) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
4.19
|
First Supplemental Indenture, dated as of April 3, 2007, among Covalence Specialty Materials Corp. (or its successor), the Guarantors identified on the signature pages thereto and Wells Fargo Bank, National Association, as trustee (incorporated herein by reference to Exhibit 10.1(f) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
|||||
4.20
|
Second Supplemental Indenture, dated as of April 3, 2007, among Covalence Specialty Materials Corp. (or its successor), Berry Plastics Holding Corporation, the Guarantors identified on the signature pages thereto and Wells Fargo Bank, National Association, as trustee (incorporated herein by reference to Exhibit 10.1(g) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
|||||
4.21
|
Second Supplemental Indenture, dated as of April 3, 2007, among Berry Plastics Holding Corporation (or its successor), the existing Guarantors identified on the signature pages thereto, the new Guarantors identified on the signature pages thereto and Wells Fargo Bank, National Association, as trustee (incorporated herein by reference to Exhibit 10.1(h) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
|||||
4.22
|
Second Supplemental Indenture dated as of April 3, 2007, among Berry Plastics Holding Corporation (or its successor), the existing Guarantors identified on the signature pages thereto, the new Guarantors identified on the signature pages thereto and Wells Fargo Bank, National Association, as trustee (incorporated herein by reference to Exhibit 10.1(i) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
|||||
4.23
|
Supplement No. 1, dated as of April 3, 2007, to the Collateral Agreement dated as of September 20, 2006 among Berry Plastics Holding Corporation, each subsidiary identified therein as a party and Wells Fargo Bank, National Association, as collateral agent (incorporated herein by reference to Exhibit 10.1(j) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
|||||
4.24
|
Indenture, by and between BPC Acquisition Corp. (and following the merger of BPC Acquisition Corp. with and into BPC Holding Corporation, BPC Holding Corporation, as Issuer, and certain Guarantors) and Wells Fargo Bank, National Association, as Trustee, relating to $525,000,000 8 7 / 8 % Second Priority Senior Secured Fixed Rate Notes due 2014 and $225,000,000 Second Priority Senior Secured Floating Rate Notes due 2014, dated as of September 20, 2006 (incorporated herein by reference to Exhibit 4.1 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
4.25
|
First Supplemental Indenture, by and among BPC Holding Corporation, certain Guarantors, BPC Acquisition Corp., and Wells Fargo Bank, National Association, as Trustee, dated as of September 20, 2006 (incorporated herein by reference to Exhibit 4.2 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
4.26
|
Collateral Agreement, by and among BPC Acquisition Corp., as Borrower, each Subsidiary of the Borrower identified therein and Wells Fargo Bank, N.A., as Collateral Agent, dated as of September 20, 2006 (incorporated herein by reference to Exhibit 4.4 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
4.27
|
Form of common stock certificate of Berry Plastics Group, Inc. (incorporated by reference to Exhibit 4.27 of Amendment No. 5 to the Company’s Registration Statement on Form S-1 (File No. 333-180294) filed on September 19, 2012).
|
|||||
4.28
|
Supplemental Indenture, dated as of December 3, 2012 among Berry Plastics Group, Inc., Berry Plastics Corporation, and U.S. Bank National Association, as trustee, with respect to the indenture, dated as of November 19, 2010, respecting Berry Plastics Corporation’s 9.75% Second Priority Senior Secured Notes due 2021 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on December 6, 2012).
|
|||||
4.29
|
Supplemental Indenture, dated as of December 3, among Berry Plastics Group, Inc., Berry Plastics Corporation, and U.S. Bank National Association, as trustee, with respect to the indenture, dated as of April 30, 2010, respecting Berry Plastics Corporation’s 9½% Second Priority Senior Secured Notes due 2018 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on December 6, 2012).
|
4.30
|
Supplemental Indenture, dated as of December 3, 2012 among Berry Plastics Group, Inc., Berry Plastics Corporation, and U.S. Bank National Association, as trustee, with respect to the indenture, dated as of April 21, 2008, respecting Berry Plastics Corporation’s First Priority Senior Secured Floating Rate Notes due 2015 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on December 6, 2012).
|
|||||
4.31
|
Supplemental Indenture, dated as of December 3, 2012 among Berry Plastics Group, Inc., Berry Plastics Corporation, and U.S. Bank National Association, as trustee, with respect to the indenture, dated as of November 12, 2009, respecting Berry Plastics Corporation’s 8¼% First Priority Senior Secured Notes due 2015 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on December 6, 2012).
|
|||||
4.32
|
Supplemental Indenture, dated as of December 3, 2012 among Berry Plastics Group, Inc., Berry Plastics Corporation, and U.S. Bank National Association, as trustee, with respect to the indenture, dated as of September 20, 2006, respecting Berry Plastics Corporation’s Second Priority Senior Secured Floating Rate Notes due 2014 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on December 6, 2012).
|
|||||
4.33
|
Supplemental Indenture, dated as of December 3, 2012 among Berry Plastics Group, Inc., Berry Plastics Corporation, and U.S. Bank National Association, as trustee, with respect to the indenture, dated as of February 16, 2006, respecting Berry Plastics Corporation’s 10¼% Senior Subordinated Notes due 2016. (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on December 6, 2012).
|
|||||
10.1
|
U.S. $400,000,000 Amended and Restated Credit Agreement, dated as of April 3, 2007, by and among Covalence Specialty Materials Corp., Berry Plastics Group, Inc., certain domestic subsidiaries party thereto from time to time, Bank of America, N.A., as collateral agent and administrative agent, the lenders party thereto from time to time, and the financial institutions party thereto (incorporated herein by reference to Exhibit 10.1(a) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
|||||
10.2
|
U.S. $1,200,000,000 Second Amended and Restated Credit Agreement, dated as of April 3, 2007, by and among Covalence Specialty Materials Corp., Berry Plastics Group, Inc., Credit Suisse, Cayman Islands Branch, as collateral and administrative agent, the lenders party thereto from time to time, and the other financial institutions party thereto (incorporated herein by reference to Exhibit 10.1(b) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
|||||
10.3
|
Amended and Restated Intercreditor Agreement, by and among Berry Plastics Group, Inc., Covalence Specialty Materials Corp., certain subsidiaries identified as parties thereto, Bank of America, N.A. and Credit Suisse, Cayman Islands Branch as first lien agents, and Wells Fargo Bank, N.A., as trustee (incorporated herein by reference to Exhibit 10.1(d) to Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on April 10, 2007).
|
|||||
10.4
|
Management Agreement, among Berry Plastics Corporation, Berry Plastics Group, Inc., Apollo Management VI, L.P., and Graham Partners, Inc., dated as of September 20, 2006 (incorporated herein by reference to Exhibit 10.7 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.5
|
Termination Agreement, by and among Covalence Specialty Materials Holding Corp., Covalence Specialty Materials Corp., and Apollo Management V, L.P., dated as of April 3, 2007 (incorporated herein by reference to Exhibit 10.7 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-142602) filed on May 4, 2007).
|
|||||
10.6
|
2006 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.8 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.7
|
Form of Performance-Based Stock Option Agreement of Berry Plastics Group, Inc. (incorporated herein by reference to Exhibit 10.9 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.8
|
Form of Accreting Stock Option Agreement of Berry Plastics Group, Inc. (incorporated herein by reference to Exhibit 10.10 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
10.9
|
Form of Time-Based Stock Option Agreement of Berry Plastics Group, Inc. (incorporated herein by reference to Exhibit 10.11 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.10
|
Form of Performance-Based Stock Appreciation Rights Agreement of Berry Plastics Group, Inc. (incorporated herein by reference to Exhibit 10.12 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.11
|
Employment Agreement, dated September 20, 2006, between Berry Plastics Corporation and
Ira G. Boots (incorporated herein by reference to Exhibit 10.13 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.12
|
Employment Agreement, dated September 20, 2006, between Berry Plastics Corporation and James M. Kratochvil (incorporated herein by reference to Exhibit 10.14 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.13
|
Employment Agreement, dated September 20, 2006, between Berry Plastics Corporation and R. Brent Beeler (incorporated herein by reference to Exhibit 10.15 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.14
|
Employment Agreement, dated November 22, 1999, between Berry Plastics Corporation and G. Adam Unfried (incorporated herein by reference to Exhibit 10.23 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on March 22, 2006).
|
|||||
10.15
|
Amendment No. 1 to Employment Agreement, dated November 22, 1999, between Berry Plastics Corporation and G. Adam Unfried, dated November 23, 2004 (incorporated herein by reference to Exhibit 10.24 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on March 22, 2006).
|
|||||
10.16
|
Amendment No. 2 to Employment Agreement, dated November 22, 1999, between Berry Plastics Corporation and G. Adam Unfried, dated March 10, 2006 (incorporated herein by reference to Exhibit 10.25 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on March 22, 2006).
|
|||||
10.17
|
Amendment No. 3 to Employment Agreement, dated November 22, 1999, between Berry Plastics Corporation and G. Adam Unfried, dated September 20, 2006 (incorporated herein by reference to Exhibit 10.19 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.18
|
Employment Agreement, dated April 3, 2007, between Berry Plastics Corporation and Thomas E. Salmon (incorporated herein by reference to Exhibit 10.20 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on December 16, 2008).
|
|||||
10.19
|
Letter Agreement, dated as of March 9, 2007, by and between Berry Plastics Group, Inc. and Ira Boots (incorporated by reference to Exhibit 10.19 of Amendment No. 1 to the Company’s Registration Statement on Form 8-K (File No. 333-180294), filed on May 4, 2012).
|
|||||
10.20
|
Purchase and Sale Agreement, dated as of December 15, 2008, by and between BP Parallel Corporation, a Delaware corporation, and Apollo Management VI, L.P., a Delaware limited partnership (incorporated herein by reference to Exhibit 10.21 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on December 16, 2008).
|
|||||
10.21
|
Employment Agreement, dated as of August 1, 2010, between Berry Plastics Corporation and Randall J. Becker (incorporated by reference to Exhibit 10.21 of Amendment No. 1 to the Company’s Registration Statement on Form 8-K (File No. 333-180294) filed on May 4, 2012).
|
|||||
10.22
|
Letter Agreement, dated September 30, 2010, between Berry Plastics Corporation and Ira G. Boots (incorporated herein by reference to Exhibit 10.1 of Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on October 6, 2010).
|
10.23
|
Employment Agreement, dated October 1, 2010, between the Berry Plastics Corporation and Jonathan Rich (incorporated herein by reference to Exhibit 10.2 of Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on October 6, 2010).
|
|||||
10.24
|
Amendment, dated as of June 28, 2011, to U.S. $400,000,000 Amended and Restated Credit Agreement, dated as of April 3, 2007, by and among Covalence Specialty Materials Corp., Berry Plastics Group, Inc., certain domestic subsidiaries party thereto from time to time, Bank of America, N.A., as collateral agent and administrative agent, the lenders party thereto from time to time, and the financial institutions party thereto (incorporated herein by reference to Exhibit 10.1 to Berry Plastics Corporation’s (File No. 033-75706-01) Amendment No. 1 to Current Report on Form 8-K filed on May 3, 2012).
|
10.15
|
Amendment No. 1 to Employment Agreement, dated November 22, 1999, between Berry Plastics Corporation and G. Adam Unfried, dated November 23, 2004 (incorporated herein by reference to Exhibit 10.24 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on March 22, 2006).
|
|||||
10.16
|
Amendment No. 2 to Employment Agreement, dated November 22, 1999, between Berry Plastics Corporation and G. Adam Unfried, dated March 10, 2006 (incorporated herein by reference to Exhibit 10.25 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on March 22, 2006).
|
|||||
10.17
|
Amendment No. 3 to Employment Agreement, dated November 22, 1999, between Berry Plastics Corporation and G. Adam Unfried, dated September 20, 2006 (incorporated herein by reference to Exhibit 10.19 to Berry Plastics Corporation’s Registration Statement Form S-4 (Reg. No. 333-138380) filed on November 2, 2006).
|
|||||
10.18
|
Employment Agreement, dated April 3, 2007, between Berry Plastics Corporation and Thomas E. Salmon (incorporated herein by reference to Exhibit 10.20 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on December 16, 2008).
|
|||||
10.19
|
Letter Agreement, dated as of March 9, 2007, by and between Berry Plastics Group, Inc. and Ira Boots (incorporated by reference to Exhibit 10.19 of Amendment No. 1 to the Company’s Registration Statement on Form 8-K (File No. 333-180294), filed on May 4, 2012).
|
|||||
10.20
|
Purchase and Sale Agreement, dated as of December 15, 2008, by and between BP Parallel Corporation, a Delaware corporation, and Apollo Management VI, L.P., a Delaware limited partnership (incorporated herein by reference to Exhibit 10.21 of Berry Plastics Corporation’s (File No. 033-75706-01) Annual Report on Form 10-K filed with the SEC on December 16, 2008).
|
|||||
10.21
|
Employment Agreement, dated as of August 1, 2010, between Berry Plastics Corporation and Randall J. Becker (incorporated by reference to Exhibit 10.21 of Amendment No. 1 to the Company’s Registration Statement on Form 8-K (File No. 333-180294) filed on May 4, 2012).
|
|||||
10.22
|
Letter Agreement, dated September 30, 2010, between Berry Plastics Corporation and Ira G. Boots (incorporated herein by reference to Exhibit 10.1 of Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on October 6, 2010).
|
|||||
10.23
|
Employment Agreement, dated October 1, 2010, between the Berry Plastics Corporation and Jonathan Rich (incorporated herein by reference to Exhibit 10.2 of Berry Plastics Corporation’s (File No. 033-75706-01) Current Report on Form 8-K filed on October 6, 2010).
|
|||||
10.24
|
Amendment, dated as of June 28, 2011, to U.S. $400,000,000 Amended and Restated Credit Agreement, dated as of April 3, 2007, by and among Covalence Specialty Materials Corp., Berry Plastics Group, Inc., certain domestic subsidiaries party thereto from time to time, Bank of America, N.A., as collateral agent and administrative agent, the lenders party thereto from time to time, and the financial institutions party thereto (incorporated herein by reference to Exhibit 10.1 to Berry Plastics Corporation’s (File No. 033-75706-01) Amendment No. 1 to Current Report on Form 8-K filed on May 3, 2012).
|
10.25*
|
Income Tax Receivable Agreement, dated as of November 29, 2012, by and among Berry Plastics Group, Inc. and Apollo Management Fund VI, L.P.
|
|||||
10.26*
|
Berry Plastics Group, Inc. Executive Bonus Plan.
|
|||||
10.27*
|
Berry Plastics Group, Inc. 2012 Long-Term Incentive Plan.
|
|||||
10.28*
|
Amendment No. 1 to the Amended and Restated Stockholders Agreement, by and among Berry Plastics Group, Inc. , and the stockholders of the Corporation listed on schedule A thereto, dated as of October 2, 2012.
|
|||||
12.1*
|
Computation of Ratio of Earnings to Fixed Charges.
|
|||||
21.1*
|
Subsidiaries of the Registrant.
|
|||||
23* | Consent of Independent Registered Public Accounting Firm | |||||
31.1*
|
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer
|
|||||
31.2*
|
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer
|
|||||
32.1*
|
Section 1350 Certification of the Chief Executive Officer
|
|||||
32.2*
|
Section 1350 Certification of the Chief Financial Officer
|
BERRY PLASTICS GROUP, INC.
|
By:
|
/s/ Jonathan D. Rich
|
Name: Jonathan D. Rich
Title: Chairman and Chief Executive Officer
|
Table of Contents
|
||
Page
|
||
ARTICLE I
|
||
DEFINITIONS
|
||
Section 1.01.
|
Definitions
|
1 |
ARTICLE II
|
||
DETERMINATION OF REALIZED TAX BENEFIT
|
||
Section 2.01.
|
Pre-IPO NOL Utilization
|
8
|
Section 2.02.
|
Tax Benefit Schedule
|
8 |
Section 2.03.
|
Procedures, Amendments
|
9 |
ARTICLE III
|
||
TAX BENEFIT PAYMENTS
|
||
Section 3.01.
|
Payments
|
9 |
Section 3.02.
|
No Duplicative Payments
|
11 |
Section 3.03.
|
Special Rule for Compensatory Payments
|
12 |
ARTICLE IV TERMINATION
|
||
Section 4.01.
|
Termination, Breach of Agreement, Change of Control
|
13 |
Section 4.02.
|
Early Termination Schedule
|
14 |
Section 4.03.
|
Payment upon Early Termination
|
14 |
ARTICLE V
|
||
LATE PAYMENTS, ETC.
|
||
Section 5.01.
|
Late Payments by the Corporation
|
15 |
Section 5.02.
|
Compliance with Indebtedness
|
15 |
ARTICLE VI
|
||
CONSISTENCY; COOPERATION
|
||
Section 6.01.
|
The Existing Stockholders Representative’s Participation in the Corporation Tax Matters
|
16 |
Section 6.02.
|
Consistency
|
16 |
Section 6.03.
|
Cooperation
|
17 |
ARTICLE VII
|
||
MISCELLANEOUS
|
||
Section 7.01.
|
Notices
|
17 |
Section 7.02.
|
Counterparts
|
18 |
Section 7.03.
|
Entire Agreement; Third Party Beneficiaries
|
18 |
Section 7.04.
|
Governing Law
|
18 |
Section 7.05.
|
Severability
|
18 |
Section 7.06.
|
Successors; Assignment; Amendments; Waivers
|
18 |
Section 7.07.
|
Titles and Subtitles
|
19 |
Section 7.08.
|
Resolution of Disputes
|
19 |
Section 7.09.
|
Reconciliation
|
20 |
Section 7.10.
|
Withholding
|
21 |
Section 7.11. |
Affiliated Corporations; Admission of the Corporation into a Consolidated Group;
Transfers of Corporate Assets
|
22 |
Section 7.12.
|
Confidentiality
|
22 |
Section 7.13.
|
Headings
|
23 |
Section 7.14.
|
Appointment of Existing Stockholders Representative
|
23 |
“Code” means the Internal Revenue Code of 1986, as amended.
|
|
By:
|
/s/ Jonathan D. Rich
|
|
Name: Jonathan D. Rich
|
|
Title: Chairman & CEO
|
|
By:
|
/s/ Laurie Medley
|
|
Name: Laurie Medley
|
|
Title: Vice President
|
|
|
|
|
|
|
|
1.
|
Purpose
|
2.
|
Administration
|
3.
|
Covered Executives
|
4.
|
Bonus Determinations
|
5.
|
Bonus Payment
|
6.
|
Amendment and Termination
|
7.
|
No Employment Rights
|
8.
|
Stockholder Approval
|
9.
|
Required Taxes
|
10.
|
Governing Law
|
11.
|
Term of Plan
|
Section 1.
|
Purpose; Definitions
|
Section 2.
|
Administration
|
Section 3.
|
Common Stock Subject to Plan
|
Section 4.
|
Eligibility
|
Section 5.
|
Options and Stock Appreciation Rights
|
Section 6.
|
Restricted Stock
|
Section 7.
|
Restricted Stock Units
|
Section 8.
|
Other Stock-Based Awards
|
Section 9.
|
Change in Control Provisions
|
Section 10.
|
Forfeiture of Awards
|
Section 11.
|
Term, Amendment and Termination
|
Section 12.
|
Unfunded Status of Plan
|
Section 13.
|
General Provisions
|
|
Name: Jonathan D. Rich
|
|
Title: Chairman & CEO
|
|
Name: Laurie Medley
|
|
Title: Vice President
|
|
Name: Laurie Medley
|
|
Title: Vice President
|
|
Name: Laurie Medley
|
|
Title: Vice President
|
|
Name: Laurie Medley
|
|
Title: Vice President
|
|
Name: Laurie Medley
|
|
Title: Vice President
|
|
Name: Laurie Medley
|
|
Title: Vice President
|
|
Name: Christopher Lawler
|
1.
|
Acknowledgement. Transferee acknowledges that Transferee is acquiring certain shares of Common Stock of the Corporation, subject to the terms and conditions of Stockholders Agreement, among the Corporation and the Stockholders party thereto.
|
2.
|
Agreement. Transferee (i) agrees that the shares of Common Stock acquired by Transferee, and certain other shares of Common Stock that may be acquired by Transferee in the future, shall be bound by and subject to the terms of the Stockholders Agreement, pursuant to the terms thereof, and (ii) hereby adopts the Stockholders Agreement with the same force and effect as if he, she or it were originally a party thereto.
|
3.
|
Notice. Any notice required as permitted by the Stockholders Agreement shall be given to Transferee at the address listed beside Transferee’s signature below.
|
4.
|
Joinder. The spouse of the undersigned Transferee, if applicable, executes this Adoption to acknowledge its fairness and that it is in such spouse’s best interest, and to bind such spouse’s community interest, if any, in the shares of Common Stock and other securities referred to above and in the Stockholders Agreement, to the terms of the Stockholders Agreement.
|
Signature:
|
Address:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings to Fixed Charges
|
||||||||||||||||||||
2008
|
2009
|
2010
|
2011
|
2012
|
||||||||||||||||
Earnings:
|
||||||||||||||||||||
Income (loss) before taxes
|
-210 | 255 | -162 | -346 | 4 | |||||||||||||||
Interest
|
321 | 304 | 313 | 327 | 328 | |||||||||||||||
Interest portion of rental expense
|
19 | 19 | 19 | 19 | 20 | |||||||||||||||
130 | 578 | 170 | 0 | 352 | ||||||||||||||||
Fixed Charges:
|
||||||||||||||||||||
Interest
|
321 | 304 | 313 | 327 | 328 | |||||||||||||||
Interest capitalized
|
2 | 2 | 2 | 3 | 5 | |||||||||||||||
Interest portion of rental expense
|
19 | 19 | 19 | 19 | 20 | |||||||||||||||
342 | 325 | 334 | 349 | 353 | ||||||||||||||||
Ratio
|
0.4 | 1.8 | 0.5 | 0.0 | 1.0 | |||||||||||||||
Shortfall (overage)
|
212 | -253 | 164 | 349 | 1 |
Aerocon, LLC
|
Berry Iowa, LLC
|
Berry Plastics Design, LLC
|
Berry Plastics Technical Services, Inc.
|
Berry Sterling Corporation
|
CPI Holding Corporation
|
Knight Plastics, LLC
|
Packerware, LLC
|
Pescor, Inc.
|
Poly-Seal, LLC
|
Venture Packaging, Inc.
|
Venture Packaging Midwest, Inc.
|
Berry Plastics Opco, Inc.
|
Berry Plastics Acquisition Corporation V
|
Berry Plastics Acquisition Corporation IX
|
Berry Plastics Acquisition Corporation X
|
Berry Plastics Acquisition Corporation XI
|
Berry Plastics Acquisition Corporation XII
|
Berry Plastics Acquisition Corporation XIII
|
Berry Plastics Acquisition Corporation XV, LLC
|
Kerr Group, LLC
|
Saffron Acquisition, LLC
|
Setco, LLC
|
Sun Coast Industries, LLC
|
Cardinal Packaging, Inc.
|
Covalence Specialty Adhesives LLC
|
Covalence Specialty Coatings LLC
|
Caplas LLC
|
Caplas Neptune, LLC
|
Captive Plastics Holding, LLC
|
Captive Plastics, LLC
|
Grafco Industries Limited Partnership
|
Rollpak Corporation
|
Pliant, LLC
|
Pliant Corporation International
|
Uniplast Holdings, LLC
|
Uniplast U.S., Inc.
|
Berry Plastics SP, Inc.
|
Berry Plastics Filmco, Inc.
|
BPRex Closure Systems, LLC
|
BPRex Closures, LLC
|
BPRex Delta, Inc.
|
BPRex Closures Kentucky, Inc.
|
Berry Plastics Corporation
|
Quarterly Financial Data (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Quarterly Financial Data |
(a) Includes a goodwill impairment charge of $165 in fiscal 2011 (b) Includes a loss on extinguishment of debt of $68 in fiscal 2011
|
Financial Instruments And Fair Value Measurements (Schedule Of Derivatives Not Designated As Hedging, By Balance Sheet Location) (Details) (Interest Rate Swap [Member], Other Long-Term Liabilites [Member], Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
|
Oct. 01, 2011
|
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Interest Rate Swap [Member] | Other Long-Term Liabilites [Member] | Not Designated as Hedging Instrument [Member]
|
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Derivatives, Fair Value [Line Items] | ||
2010 Swaps | $ 7 | $ 8 |
Acquisitions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 1 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2011
|
Oct. 02, 2010
|
Jun. 30, 2012
STOPAQ [Member]
|
Sep. 30, 2011
Rexam SBC [Member]
|
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Business Acquisition [Line Items] | ||||
Percentage of capital stock acquired | 100.00% | 100.00% | ||
Aggregate purchase price | $ 65 | $ 351 | ||
Purchase price, net of cash acquired | 62 | 340 | ||
Pro forma net sales | 4,996 | 4,943 | ||
Pro forma net loss | $ (307) | $ (186) |
Financial Instruments And Fair Value Measurements (Schedule Of Derivatives Not Designated As Hedging, By Statement Of Operations Location) (Details) (Interest Rate Swap [Member], Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
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Other Expense (Income) [Member]
|
||
Derivative Instruments, Gain (Loss) [Line Items] | ||
2010 Swaps | $ (2) | |
Interest Expense [Member]
|
||
Derivative Instruments, Gain (Loss) [Line Items] | ||
2010 Swaps | $ 4 | $ 1 |
Retirement Plan (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Retirement Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Projected Benefit Obligations And Change In Fair Value Of Plan Assets |
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Weighted Average Assumptions Used To Determine Benefit Obligation And Benefit Cost |
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Schedule Of Plan Asset Fair Values |
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Schedule Of Expected Benefit Payments |
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Schedule Of Net Pension And Retiree Health Benefit Expense |
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Schedule Of Defined Benefit Pension Plan Asset Allocations |
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Restructuring And Impairment Charges (Summary Of Activity In Restructuring Accrual) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
|
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ 7 | $ 6 | |
Charges | 31 | 56 | 41 |
Non-cash asset impairment | (20) | (35) | |
Cash payments | (11) | (20) | |
Ending balance | 7 | 7 | 6 |
Employee Severance And Benefits [Member]
|
|||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 4 | 3 | |
Charges | 7 | 11 | |
Cash payments | (7) | (10) | |
Ending balance | 4 | 4 | |
Facilities Exit Costs [Member]
|
|||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 3 | 3 | |
Charges | 4 | 10 | |
Cash payments | (4) | (10) | |
Ending balance | 3 | 3 | |
Non-Cash Charges [Member]
|
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Restructuring Cost and Reserve [Line Items] | |||
Charges | 20 | 35 | |
Non-cash asset impairment | $ (20) | $ (35) |
Retirement Plan (Schedule Of Expected Benefit Payments) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
|
---|---|
Defined Benefit Pension Plans [Member]
|
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Defined Benefit Plan Disclosure [Line Items] | |
2013 | $ 10 |
2014 | 10 |
2015 | 10 |
2016 | 10 |
2017 | 10 |
2018-2022 | 55 |
Retiree Health Plan [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
2013 | 1 |
2018-2022 | $ 1 |
Net Income (Loss) Per Share (Schedule Of Net Income (Loss) Per Share) (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2012
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Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Oct. 01, 2011
|
Jul. 02, 2011
|
Apr. 02, 2011
|
Jan. 01, 2011
|
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
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Net Income (Loss) Per Share [Abstract] | |||||||||||||||||||
Net income (loss) | $ 22 | [1] | $ 9 | $ 2 | $ (31) | [2] | $ (192) | [1] | $ (5) | $ (19) | $ (83) | [2] | $ 2 | $ (299) | $ (113) | ||||
Weighted average shares of common stock outstanding--basic | 83,435 | 84,121 | 84,525 | ||||||||||||||||
Other common stock equivalents | 3,209 | ||||||||||||||||||
Diluted | 86,644 | 84,121 | 84,525 | ||||||||||||||||
Weighted average shares of common stock outstanding--diluted | 86,644 | 84,121 | 84,525 | ||||||||||||||||
Basic net income (loss) per share from continuing operations | $ 0.02 | $ (3.55) | $ (1.34) | ||||||||||||||||
Basic net income (loss) per share available to common shareholders | $ 0.02 | $ (3.55) | $ (1.34) | ||||||||||||||||
Basic net income (loss) per share from continuing operations | $ 0.02 | $ (3.55) | $ (1.34) | ||||||||||||||||
Diluted | $ 0.02 | $ (3.55) | $ (1.34) | ||||||||||||||||
Basic net income (loss) per share available to common shareholders | $ 0.02 | $ (3.55) | $ (1.34) | ||||||||||||||||
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Financial Instruments And Fair Value Measurements (Schedule Of Assets Measured At Fair Value On A Non-Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 29, 2012
|
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Indefinite-lived trademarks | $ 220 | $ 220 | $ 220 | $ 220 |
Goodwill | 1,626 | 1,626 | 1,595 | 1,700 |
Definite lived intangible assets | 737 | 737 | ||
Property, plant, and equipment | 1,216 | 1,216 | 1,250 | 1,146 |
Total | 3,799 | 3,799 | 3,065 | 3,066 |
Goodwill, Impairment Loss | 165 | 165 | 165 | |
Definite lived intangible assets, impairment loss | 17 | |||
Property, plant, and equipment, Impairment Loss | 3 | 35 | 19 | |
Total, Impairment Loss | 20 | 200 | 19 | |
Level 3 [Member]
|
||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Indefinite-lived trademarks | 220 | 220 | 220 | 220 |
Goodwill | 1,626 | 1,626 | 1,595 | 1,700 |
Definite lived intangible assets | 737 | 737 | ||
Property, plant, and equipment | 1,216 | 1,216 | 1,250 | 1,146 |
Total | $ 3,799 | $ 3,799 | $ 3,065 | $ 3,066 |
Restructuring And Impairment Charges (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Oct. 01, 2011
|
Jul. 02, 2011
|
Apr. 02, 2011
|
Jan. 01, 2011
|
Sep. 29, 2012
segment
|
Oct. 01, 2011
|
Oct. 02, 2010
|
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Number of reporting segments | 4 | ||||||||||||||||||
Net sales | $ 1,204 | [1] | $ 1,242 | $ 1,183 | $ 1,137 | [2] | $ 1,229 | [1] | $ 1,187 | $ 1,104 | $ 1,041 | [2] | $ 4,766 | $ 4,561 | $ 4,257 | ||||
Non-cash asset impairment | 20 | 200 | 19 | ||||||||||||||||
Engineered Materials [Member]
|
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Number of facilities closed | 2 | 4 | |||||||||||||||||
Net sales | 71 | 106 | 91 | ||||||||||||||||
Rigid Closed Top, Engineered Materials, And Flexible Packaging Afected By Closures [Member]
|
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Number of facilities closed | 3 | ||||||||||||||||||
Non-cash asset impairment | 17 | 35 | 19 | ||||||||||||||||
Flexible Packaging [Member]
|
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Number of facilities closed | 1 | 1 | |||||||||||||||||
Net sales | 24 | 22 | |||||||||||||||||
Rigid Closed Top Affected By Closures [Member]
|
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Number of facilities closed | 1 | ||||||||||||||||||
Net sales | $ 14 | $ 14 | |||||||||||||||||
|
Segment And Geographic Data (Summary Of Selected Information By Reportable Segment) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Oct. 01, 2011
|
Jul. 02, 2011
|
Apr. 02, 2011
|
Jan. 01, 2011
|
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
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Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 1,204 | [1] | $ 1,242 | $ 1,183 | $ 1,137 | [2] | $ 1,229 | [1] | $ 1,187 | $ 1,104 | $ 1,041 | [2] | $ 4,766 | $ 4,561 | $ 4,257 | ||||
Operating income (loss) | 325 | 42 | 124 | ||||||||||||||||
Depreciation and amortization | 355 | 344 | 317 | ||||||||||||||||
Restructuring and impairment charges | 31 | 221 | 41 | ||||||||||||||||
Rigid Open Top [Member]
|
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Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 1,229 | 1,261 | 1,160 | ||||||||||||||||
Operating income (loss) | 159 | 155 | 124 | ||||||||||||||||
Depreciation and amortization | 90 | 102 | 93 | ||||||||||||||||
Rigid Closed Top [Member]
|
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Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 1,438 | 1,053 | 970 | ||||||||||||||||
Operating income (loss) | 95 | 77 | 73 | ||||||||||||||||
Depreciation and amortization | 135 | 95 | 91 | ||||||||||||||||
Engineered Materials [Member]
|
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Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 1,362 | 1,451 | 1,457 | ||||||||||||||||
Operating income (loss) | 70 | (71) | 4 | ||||||||||||||||
Depreciation and amortization | 71 | 72 | 72 | ||||||||||||||||
Flexible Packaging [Member]
|
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Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 737 | 796 | 670 | ||||||||||||||||
Operating income (loss) | 1 | (119) | (77) | ||||||||||||||||
Depreciation and amortization | $ 59 | $ 75 | $ 61 | ||||||||||||||||
|
Stockholders' Equity (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended | |||
---|---|---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
Dec. 30, 2006
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for grant | 9,297,750 | 7,071,337 | ||
Additional shares authorized for grant | 5,267,500 | |||
Term of plan | 10 years | |||
Rate of exercise price per share increase per year | 15.00% | |||
Vesting period | 5 years | |||
Stock based compensation expense | $ 2 | $ 2 | $ 1 | |
Redeemable shares | 23 | 16 | ||
Parent Company [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Redeemable shares | $ 23 | $ 16 |
Segment And Geographic Data (Summary Of Assets And Goodwill By Segment) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
---|---|---|---|
Segment Reporting Information [Line Items] | |||
Total assets | $ 5,106 | $ 5,217 | |
Goodwill | 1,626 | 1,595 | 1,700 |
Rigid Open Top [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Total assets | 1,818 | ||
Goodwill | 681 | 681 | 682 |
Rigid Closed Top [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Total assets | 1,963 | ||
Goodwill | 832 | 819 | 771 |
Engineered Materials [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Total assets | 841 | ||
Goodwill | 73 | 55 | 134 |
Flexible Packaging [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Total assets | 595 | ||
Goodwill | $ 40 | $ 40 | $ 113 |
Restructuring And Impairment Charges (Schedule Of Estimated Costs For Restructuring Programs) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended |
---|---|
Sep. 29, 2012
|
|
Restructuring Cost and Reserve [Line Items] | |
Expected Total Costs | $ 190 |
Cumulative charges through Fiscal 2012 | 188 |
To be Recognized in Future | 2 |
Employee Severance And Benefits [Member]
|
|
Restructuring Cost and Reserve [Line Items] | |
Expected Total Costs | 34 |
Cumulative charges through Fiscal 2012 | 34 |
Facilities Exit Costs [Member]
|
|
Restructuring Cost and Reserve [Line Items] | |
Expected Total Costs | 52 |
Cumulative charges through Fiscal 2012 | 50 |
To be Recognized in Future | 2 |
Asset Impairment [Member]
|
|
Restructuring Cost and Reserve [Line Items] | |
Expected Total Costs | 100 |
Cumulative charges through Fiscal 2012 | 100 |
Other Restructuring [Member]
|
|
Restructuring Cost and Reserve [Line Items] | |
Expected Total Costs | 4 |
Cumulative charges through Fiscal 2012 | $ 4 |
Retirement Plan (Weighted Average Assumptions Used To Determine Benefit Obligation And Benefit Cost) (Details)
|
12 Months Ended | |
---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
|
Defined Benefit Pension Plans [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate for benefit obligation | 3.60% | 4.40% |
Discount rate for net benefit cost | 4.40% | 4.80% |
Expected return on plan assets for net benefit costs | 8.00% | 8.00% |
Retiree Health Plan [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate for benefit obligation | 2.40% | 4.50% |
Discount rate for net benefit cost | 4.50% | 5.00% |
Expected return on plan assets for net benefit costs | 8.00% | 8.00% |
Basis Of Presentation And Summary Of Significant Accounting Policies (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Assumptions Used For Options Granted |
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Activity For Allowance For Doubtful Accounts |
|
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Schedule Of Inventory |
|
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Schedule Of Property, Plant And Equipment |
|
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Changes In The Carrying Amount Of Goodwill |
|
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Schedule Of Intangible Assets |
|
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Schedule Of Other Comprehensive Income (Loss) |
|
Long-Term Debt (Narrative) (Details) (USD $)
|
1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2012
|
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
Sep. 29, 2012
Term Loan [Member]
|
Sep. 29, 2007
Term Loan [Member]
|
Sep. 29, 2012
Revolving Line Of Credit [Member]
|
Jun. 30, 2011
Revolving Line Of Credit [Member]
|
Sep. 29, 2007
Revolving Line Of Credit [Member]
|
Sep. 29, 2012
9 3/4% Second Priority Senior Secured Notes [Member]
|
Sep. 29, 2012
10 1/4% Senior Subordinated Notes [Member]
|
Oct. 01, 2011
10 1/4% Senior Subordinated Notes [Member]
|
Sep. 29, 2012
Second Priority Senior Secured Floating Rate Notes [Member]
|
Sep. 29, 2012
11% Senior Subordinated Notes [Member]
|
Sep. 29, 2012
Minimum [Member]
Revolving Line Of Credit [Member]
|
Sep. 29, 2012
Maximum [Member]
Term Loan [Member]
|
Sep. 29, 2012
Maximum [Member]
Revolving Line Of Credit [Member]
|
Sep. 29, 2012
Federal Funds Rate [Member]
Revolving Line Of Credit [Member]
|
Sep. 29, 2012
LIBOR [Member]
|
Sep. 29, 2012
LIBOR [Member]
Term Loan [Member]
|
Sep. 29, 2012
LIBOR [Member]
Minimum [Member]
Revolving Line Of Credit [Member]
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Sep. 29, 2012
LIBOR [Member]
Maximum [Member]
Revolving Line Of Credit [Member]
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Sep. 29, 2012
Base Rate [Member]
Term Loan [Member]
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Sep. 29, 2012
Base Rate [Member]
Revolving Line Of Credit [Member]
|
Sep. 29, 2012
Based On Achievement Certain Leverage Ratios [Member]
Minimum [Member]
Term Loan [Member]
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Sep. 29, 2012
Based On Unused Capacity Of Less Than 10% [Member]
Revolving Line Of Credit [Member]
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Sep. 29, 2012
Based On Unused Capacity Of Less Than 10% [Member]
Minimum [Member]
Revolving Line Of Credit [Member]
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Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Debt instrument, face amount | $ 1,200,000,000 | ||||||||||||||||||||||||||
Credit facility, maximum borrowing capacity | 650,000,000 | 150,000,000 | 650,000,000 | ||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 9.75% | 10.25% | 10.25% | 11.00% | |||||||||||||||||||||||
Maturity date | Apr. 01, 2015 | Jun. 01, 2016 | Jan. 01, 2021 | Mar. 01, 2016 | Sep. 01, 2014 | Sep. 01, 2016 | |||||||||||||||||||||
Amount added to base rate for interest rate | 0.50% | 2.00% | 1.75% | 2.25% | 1.00% | 0.00% | |||||||||||||||||||||
Interest rate of base | 0.36% | ||||||||||||||||||||||||||
Minimum principal payments | 3,000,000 | ||||||||||||||||||||||||||
Term of quarterly principal payments | 8 years | ||||||||||||||||||||||||||
Percentage of excess cash flow that must be used to prepay outstanding term loan | 50.00% | 0.00% | |||||||||||||||||||||||||
Percentage of net cash proceeds from non-ordinary asset sales, casualty and condemnation events that must be used to prepay outstanding term loan if not reinvested in business | 100.00% | ||||||||||||||||||||||||||
Period of time company has to reinvest net cash proceeds from non-ordinary asset sales, casualty and condemnation events | 15 months | ||||||||||||||||||||||||||
Credit facility, unutilized capacity commitment fee | 0.375% | 0.50% | |||||||||||||||||||||||||
Letter of credit, fronting fee | 0.125% | ||||||||||||||||||||||||||
Fixed charge coverage ratio | 1.70% | 100.00% | |||||||||||||||||||||||||
Credit facility, unused capacity | 10.00% | ||||||||||||||||||||||||||
Term that unused capacity of credit facility must be below 10% to trigger ratio requirement | 10 days | ||||||||||||||||||||||||||
Credit facility, remaining borrowing capacity | 426,000,000 | ||||||||||||||||||||||||||
First lien secured leverage ratio | 2.80% | 400.00% | |||||||||||||||||||||||||
Credit facility, amount outstanding | 73,000,000 | ||||||||||||||||||||||||||
Letter of credit, amount outstanding | 50,000,000 | ||||||||||||||||||||||||||
Interest paid | 288,000,000 | 300,000,000 | 244,000,000 | ||||||||||||||||||||||||
Stock sold in initial public offering | 29,411,764 | ||||||||||||||||||||||||||
Stock sold, price per share | $ 16.00 | ||||||||||||||||||||||||||
Proceeds from sale of stock | 444,000,000 | ||||||||||||||||||||||||||
Amount of debt extinguished | $ 455,000,000 |
Basis Of Presentation And Summary Of Significant Accounting Policies (Activity For Allowance For Doubtful Accounts) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
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Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | |||
Allowance for doubtful accounts, beginning | $ 4 | $ 4 | $ 3 |
Bad debt expense | 1 | 1 | 2 |
Write-offs against allowance | (2) | (1) | (1) |
Allowance for doubtful accounts, ending | $ 3 | $ 4 | $ 4 |
Retirement Plan (Schedule Of Defined Benefit Pension Plan Asset Allocations) (Details)
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Sep. 29, 2012
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Oct. 01, 2011
|
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Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plan asset allocation | 100.00% | 100.00% |
Equity Securities And Equity-Like Instruments [Member]
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Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plan asset allocation | 59.00% | 53.00% |
Debt Securities [Member]
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Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plan asset allocation | 29.00% | 32.00% |
Other Asset Categories [Member]
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Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plan asset allocation | 12.00% | 15.00% |
Net Income (Loss) Per Share (Tables)
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Net Income (Loss) Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Net Income (Loss) Per Share |
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Long-Term Debt (Future Maturities Of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
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Long-Term Debt [Abstract] | |
2013 | $ 40 |
2014 | 281 |
2015 | 1,813 |
2016 | 1,035 |
2017 | 4 |
Thereafter | 1,307 |
Long-term debt | $ 4,480 |
Income Taxes (Components Of Net Deferred Income Tax Liability) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
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Oct. 01, 2011
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Income Taxes [Abstract] | ||
Allowance for doubtful accounts | $ 4 | $ 4 |
Deferred gain on sale-leaseback | 15 | 15 |
Accrued liabilities and reserves | 60 | 58 |
Inventories | 8 | 8 |
Net operating loss carryforward | 393 | 406 |
Alternative minimum tax (AMT) credit carryforward | 9 | 8 |
Other | 6 | 15 |
Total deferred tax assets | 495 | 514 |
Valuation allowance | (51) | (43) |
Total deferred tax assets, net of valuation allowance | 444 | 471 |
Property and equipment | 190 | 143 |
Intangible assets | 322 | 347 |
Debt extinguishment | 132 | 132 |
Other | 1 | 4 |
Total deferred tax liabilities | 645 | 626 |
Net deferred tax liability | $ (201) | $ (155) |
Lease And Other Commitments And Contingencies (Schedule Of Future Minimum Payments For Capital And Operating Leases) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
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Lease And Other Commitments And Contingencies [Abstract] | |
Capital Leases, 2013 | $ 24 |
Capital Leases, 2014 | 20 |
Capital Leases, 2015 | 22 |
Capital Leases, 2016 | 11 |
Capital Leases, 2017 | 4 |
Capital Leases, Thereafter | 6 |
Capital Leases, Total net minimum payments | 87 |
Capital Leases, Less: amount representing interest | (17) |
Capital Leases, Present value of net minimum lease payments | 70 |
Operating Leases, 2013 | 46 |
Operating Leases, 2014 | 36 |
Operating Leases, 2015 | 32 |
Operating Leases, 2016 | 30 |
Operating Leases, 2017 | 26 |
Operating Leases, Thereafter | 119 |
Operating Leases, Total net minimum payments | $ 289 |
Long-Term Debt
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Long-Term Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | 3. Long-Term Debt
Long-term debt consists of the following as of fiscal year-end 2012 and 2011:
Berry Plastics Corporation Senior Secured Credit Facility
In fiscal 2007, the Berry Plastics Corporation entered into senior secured credit facilities that include a term loan in the principal amount of $1,200 term loan and a revolving credit facility (“Credit Facility”), which was amended in June 2011 to increase the commitments under its revolving credit facility by $150 to a total of $650 and extended the maturity to June 2016, subject to certain conditions. The Credit Facility provides borrowing availability equal to the lesser of (a) $650 or (b) the borrowing base, which is a function, among other things, of the Company’s accounts receivable and inventory.
The borrowings under the senior secured credit facilities bear interest at a rate equal to an applicable margin plus, as determined at the Company’s option, either (a) a base rate determined by reference to the higher of (1) the prime rate of Credit Suisse, Cayman Islands Branch, as administrative agent, in the case of the term loan facility or Bank of America, N.A., as administrative agent, in the case of the revolving credit facility and (2) the U.S. federal funds rate plus 1/2 of 1% or (b) LIBOR (0.36% for the term loan as of fiscal 2012) determined by reference to the costs of funds for eurodollar deposits in dollars in the London interbank market for the interest period relevant to such borrowing Bank Compliance for certain additional costs. The applicable margin for LIBOR rate borrowings under the revolving credit facility range from 1.75% to 2.25% and for the term loan is 2.00%. The initial applicable margin for base rate borrowings under the revolving credit facility is 0% and under the term loan is 1.00%.
The term loan facility requires minimum quarterly principal payments of $3 for the first eight years, which commenced in June 2007, with the remaining amount payable in April 2015. In addition, the Company must prepay the outstanding term loan, subject to certain exceptions, with (1) beginning with the Company’s first fiscal year after the closing, 50% (which percentage is subject to a minimum of 0% upon the achievement of certain leverage ratios) of excess cash flow (as defined in the credit agreement); and (2) 100% of the net cash proceeds of all non-ordinary course asset sales and casualty and condemnation events, if the Company does not reinvest or commit to reinvest those proceeds in assets to be used in its business or to make certain other permitted investments within 15 months, subject to certain limitations.
In addition to paying interest on outstanding principal under the senior secured credit facilities, the Company is required to pay a commitment fee to the lenders under the revolving credit facilities in respect of the unutilized commitments thereunder at a rate equal to 0.375% to 0.50% per annum depending on the average daily available unused borrowing capacity. The Company also pays a customary letter of credit fee, including a fronting fee of 0.125% per annum of the stated amount of each outstanding letter of credit, and customary agency fees.
The Company may voluntarily repay outstanding loans under the senior secured credit facilities at any time without premium or penalty, other than customary “breakage” costs with respect to eurodollar loans. The senior secured credit facilities contain various restrictive covenants that, among other things and subject to specified exceptions, prohibit the Company from prepaying other indebtedness, and restrict its ability to incur indebtedness or liens, make investments or declare or pay any dividends. All obligations under the senior secured credit facilities are unconditionally guaranteed by the Company and, subject to certain exceptions, each of the Company’s existing and future direct and indirect domestic subsidiaries. The guarantees of those obligations are secured by substantially all of the Company’s assets as well as those of each domestic subsidiary guarantor.
The Company’s fixed charge coverage ratio, as defined in the revolving credit facility, is calculated based on a numerator consisting of adjusted EBITDA less pro forma adjustments, income taxes paid in cash and capital expenditures, and a denominator consisting of scheduled principal payments in respect of indebtedness for borrowed money, interest expense and certain distributions. We are obligated to sustain a minimum fixed charge coverage ratio of 1.0 to 1.0 under the revolving credit facility at any time when the aggregate unused capacity under the revolving credit facility is less than 10% of the lesser of the revolving credit facility commitments and the borrowing base (and for 10 business days following the date upon which availability exceeds such threshold) or during the continuation of an event of default. At the end of fiscal 2012, the Company had unused borrowing capacity of $426 under the revolving credit facility subject to a borrowing base and thus was not subject to the minimum fixed charge coverage ratio covenant. The fixed charge ratio was 1.7 to 1.0, at the end of fiscal 2012.
Despite not having financial maintenance covenants, our debt agreements contain certain negative covenants. The failure to comply with these negative covenants could restrict our ability to incur additional indebtedness, effect acquisitions, enter into certain significant business combinations, make distributions or redeem indebtedness. The term loan facility contains a negative covenant first lien secured leverage ratio covenant of 4.0 to 1.0 on a pro forma basis for a proposed transaction, such as an acquisition or incurrence of additional first lien debt. Our first lien secured leverage ratio was 2.8 to 1.0 at the end of fiscal 2012.
As of fiscal 2012, there was $73 outstanding on the revolving line of credit and $50 in letters of credit outstanding. As of fiscal 2012, the Company had unused borrowing capacity of $426 under the revolving line of credit subject to the Company’s borrowing base calculations.
Future maturities of long-term debt as of fiscal year-end 2012 are as follows:
Interest paid was $288, $300, and $244 in fiscal 2012, 2011, and 2010, respectively.
In October 2012, the Company filed an initial public offering and sold 29,411,764 shares of common stock at $16.00 per share. Proceeds, net of underwriting fees, of $444 and cash from operations were used to repurchase $455 of 11% Senior Subordinated Notes due September 2016.
In fiscal 2012 and 2010, BP Parallel LLC (“BP Parallel”), a non-guarantor subsidiary of the Company, invested $4 and $25 to purchase assignments from non-affiliated third parties at then-prevailing market prices of $5 and $33 of principal of the Senior Unsecured Term Loan, respectively. We recognized a net gain of $1 and $8 on the repurchase of the Senior Unsecured Term Loan in fiscal 2012 and 2010, respectively which is recorded in Other expense (income) in our Consolidated Statements of Operations. BP Parallel did not purchase assignments of the Senior Unsecured Term Loan in 2011.
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Accrued Expenses, Other Current Liabilities And Other Long-Term Liabilities (Summary Of Accrued Expenses And Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
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Oct. 01, 2011
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Accrued Expenses, Other Current Liabilities And Other Long-Term Liabilities [Abstract] | ||
Employee compensation, payroll and other taxes | $ 95 | $ 101 |
Interest | 60 | 63 |
Rebates | 68 | 60 |
Other | 77 | 62 |
Accrued expenses and other current liabilities | $ 300 | $ 286 |
Basis Of Presentation And Summary Of Significant Accounting Policies (Schedule Of Inventory) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
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Oct. 01, 2011
|
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Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | ||
Finished goods | $ 306 | $ 338 |
Raw materials | 229 | 240 |
Inventories | $ 535 | $ 578 |
Goodwill, Intangible Assets And Deferred Costs (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Goodwill, Intangible Assets And Deferred Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Intangible Assets, Goodwill And Deferred Costs |
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Financial Instruments And Fair Value Measurements (Tables)
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Sep. 29, 2012
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Financial Instruments And Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Derivatives Not Designated As Hedging, By Balance Sheet Location |
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Schedule Of Derivatives Not Designated As Hedging, By Statement Of Operations Location |
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Summary Of Long-Term Indebtedness In Excess Of Fair Value |
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Schedule Of Assets Measured At Fair Value On A Non-Recurring Basis |
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Basis Of Presentation And Summary Of Significant Accounting Policies (Schedule Of Property, Plant And Equipment) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
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Oct. 01, 2011
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Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,300 | $ 2,104 |
Less accumulated depreciation | 1,084 | 854 |
Property, plant and equipment, net | 1,216 | 1,250 |
Land, Buildings And Improvements [Member]
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Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 281 | 268 |
Equipment And Construction In Progress [Member]
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Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,019 | $ 1,836 |
Lease And Other Commitments And Contingencies (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Lease And Other Commitments And Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Future Minimum Payments For Capital And Operating Leases |
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Accrued Expenses, Other Current Liabilities And Other Long-Term Liabilities (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Accrued Expenses, Other Current Liabilities And Other Long-Term Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Accrued Expenses And Other Current Liabilities |
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Summary Of Other Long-Term Liabilities |
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Acquisitions
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12 Months Ended | ||||||||||||||||||||||||
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Sep. 29, 2012
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Acquisitions [Abstract] | |||||||||||||||||||||||||
Acquisitions | 2. Acquisitions
The Company maintains a selective and disciplined acquisition strategy, which is focused on improving our long-term financial performance, enhancing our market positions, and expanding our product lines or, in some cases, providing us with a new or complementary product line. Most businesses we have acquired had profit margins that are lower than that of our existing business, which resulted in a temporary decrease in our margins. The Company has historically achieved significant reductions in manufacturing and overhead costs of acquired companies by introducing advanced manufacturing processes, exiting low-margin businesses or product lines, reducing headcount, rationalizing facilities and machinery, applying best practices and capitalizing on economies of scale. In connection with our acquisitions, we have in the past and may in the future incur charges related to these reductions and rationalizations.
The Company has a long history of acquiring and integrating companies. The Company has been able to achieve these synergies by eliminating duplicative costs and rationalizing facilities and integrating the production into the most efficient operating facility. While the expected benefits on earnings are estimated at the commencement of each transaction, once the execution of the plan and integration occur, the Company is generally unable to accurately estimate or track what the ultimate effects on future earnings have been due to systems integrations and movement of activities to multiple facilities. The historical business combinations have not allowed the Company to accurately separate realized synergies compared to what was initially identified during the due diligence phase of each acquisition.
Stopaq® In June 2012, the Company acquired 100% of the shares of Frans Nooren Beheer B.V. and its operating companies (“Stopaq”) for a purchase price of $65 ($62, net of cash acquired). Stopaq is the inventor and manufacturer of patented visco-elastic technologies for use in corrosion prevention, sealing and insulation applications ranging from pipelines to subsea piles to rail and cable joints. The newly added business is operated in the Company’s Engineered Materials reporting segment. To finance the purchase, the Company used cash on hand and existing credit facilities. The Stopaq acquisition has been accounted for under the purchase method of accounting, and accordingly, the preliminary purchase price has been allocated to the identifiable assets and liabilities based on estimated fair values at the acquisition date. The Company has not finalized the purchase price allocation to the fair value on fixed assets, deferred income taxes, intangibles and is reviewing all the working capital acquired. The Company has recognized goodwill on this transaction as a result of expected synergies. A portion of the goodwill will not be deductible for tax purposes. Rexam Specialty and Beverage Closures In September 2011, the Company acquired 100% of the capital stock of Rexam Closures Kentucky Inc., Rexam Delta Inc., Rexam Closures LLC, Rexam Closure Systems LLC, Rexam de Mexico S. de R.L. de C.V., Rexam Singapore PTE Ltd., Rexam Participacoes Ltda. and Rexam Plasticos do Brasil Ltda. (collectively, “Rexam SBC”) pursuant to an Equity Purchase Agreement by and among Rexam Inc., Rexam Closures and Containers Inc., Rexam Closure Systems Inc., Rexam Plastic Packaging Inc., Rexam Brazil Closure Inc., Rexam Beverage Can South America S.A. and the Company. The aggregate purchase price was $351 ($340, net of cash acquired). Rexam SBC’s primary products include plastic closures, fitments and dispensing closure systems, and jars. The newly added business is operated in the Company’s Rigid Closed Top reporting segment. To finance the purchase, the Company used cash on hand and existing credit facilities. The Rexam SBC acquisition has been accounted for under the purchase method of accounting, and accordingly, the purchase price has been allocated to the identifiable assets and liabilities based on estimated fair values at the acquisition date. The acquisition was accounted for as a business combination using the purchase method of accounting. The Company has recognized goodwill on this transaction as a result of expected synergies. A portion of the goodwill will not be deductible for tax purposes. The following table summarizes the allocation of purchase price:
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Income Taxes (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Income Tax Benefit |
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Reconciliation From Federal Income Tax To Tax Benefit |
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Components Of Net Deferred Income Tax Liability |
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Activity Related To Gross Unrecognized Tax Benefits |
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Stockholders' Equity (Schedule Of Assumptions Used For Options Granted) (Details)
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12 Months Ended | ||
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Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Stockholders' Equity [Abstract] | |||
Risk-free interest rate, minimum | 0.60% | ||
Risk-free interest rate, maximum | 0.90% | ||
Risk-free interest rate | 1.30% | 2.60% | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility factor | 0.38% | 0.33% | |
Volatility factor, minimum | 0.32% | ||
Volatility factor, maximum | 0.34% | ||
Expected option life | 5 years | 5 years | 5 years |
Quarterly Financial Data (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||||||||||
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Sep. 29, 2012
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Jun. 30, 2012
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Mar. 31, 2012
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Dec. 31, 2011
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Oct. 01, 2011
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Jul. 02, 2011
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Apr. 02, 2011
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Jan. 01, 2011
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Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Quarterly Financial Data [Abstract] | |||||||||||||||||||
Net sales | $ 1,204 | [1] | $ 1,242 | $ 1,183 | $ 1,137 | [2] | $ 1,229 | [1] | $ 1,187 | $ 1,104 | $ 1,041 | [2] | $ 4,766 | $ 4,561 | $ 4,257 | ||||
Cost of sales | 977 | [1] | 1,028 | 972 | 972 | [2] | 1,037 | [1] | 1,000 | 939 | 902 | [2] | 3,949 | 3,878 | 3,667 | ||||
Gross profit | 227 | [1] | 214 | 211 | 165 | [2] | 192 | [1] | 187 | 165 | 139 | [2] | |||||||
Net income (loss) | 22 | [1] | 9 | 2 | (31) | [2] | (192) | [1] | (5) | (19) | (83) | [2] | 2 | (299) | (113) | ||||
Goodwill impairment charge | 165 | 165 | 165 | ||||||||||||||||
Loss on extinguishment of debt | $ 68 | $ (1) | $ (4) | $ (13) | |||||||||||||||
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Goodwill, Intangible Assets And Deferred Costs (Schedule Of Intangible Assets, Goodwill And Deferred Costs) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||||||||||||||||||
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Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Sep. 29, 2012
Trademarks [Member]
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Oct. 01, 2011
Trademarks [Member]
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Oct. 02, 2010
Trademarks [Member]
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Sep. 29, 2012
Customer Relationships [Member]
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Oct. 01, 2011
Customer Relationships [Member]
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Oct. 02, 2010
Customer Relationships [Member]
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Sep. 29, 2012
Other Intangible Assets [Member]
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Oct. 01, 2011
Other Intangible Assets [Member]
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Oct. 02, 2010
Other Intangible Assets [Member]
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Sep. 29, 2012
Trademarks [Member]
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Oct. 01, 2011
Trademarks [Member]
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Sep. 29, 2012
Minimum [Member]
Customer Relationships [Member]
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Sep. 29, 2012
Minimum [Member]
Other Intangible Assets [Member]
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Sep. 29, 2012
Minimum [Member]
Trademarks [Member]
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Sep. 29, 2012
Maximum [Member]
Customer Relationships [Member]
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Sep. 29, 2012
Maximum [Member]
Other Intangible Assets [Member]
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Goodwill, Intangible Assets And Deferred Costs [Line Items] | |||||||||||||||||||
Deferred financing fees | $ 104 | $ 104 | |||||||||||||||||
Deferred financing fees, accumulated amortization | (51) | (39) | |||||||||||||||||
Deferred financing fees, net | 53 | 65 | |||||||||||||||||
Goodwill | 1,626 | 1,595 | 1,700 | ||||||||||||||||
Finite intangible assets | 69 | 66 | 1,153 | 1,178 | 1,145 | 99 | 82 | 76 | |||||||||||
Indefinite intangible assets | 289 | 286 | 277 | 220 | 220 | ||||||||||||||
Finite intangible assets, accumulated amortization | (584) | (502) | (396) | ||||||||||||||||
Intangible assets, net | 957 | 1,044 | 1,102 | ||||||||||||||||
Total goodwill, intangible assets and deferred costs | $ 2,636 | $ 2,704 | |||||||||||||||||
Finite intangible assets, amortization period | 11 years | 10 years | 8 years | 20 years | 20 years |
Stockholders' Equity (Tables)
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Sep. 29, 2012
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Stockholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Stock Option Activity |
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Schedule Of Assumptions Used For Options Granted |
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Summary Of Options Outstanding By Exercise Price Range |
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Income Taxes (Schedule Of Income Tax Benefit) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Income Taxes [Abstract] | |||
Current - Federal | $ (3) | ||
Current - State | 1 | 3 | |
Current - Non-U.S. | 4 | 3 | |
Current income tax provision | 1 | 4 | 3 |
Deferred - Federal | 3 | (57) | (38) |
Deferred - State | (1) | 7 | (11) |
Deferred - Non-U.S. | (1) | (1) | (3) |
Deferred income tax benefit | 1 | (51) | (52) |
Expense (benefit) for income taxes | $ 2 | $ (47) | $ (49) |
Quarterly Financial Data
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Sep. 29, 2012
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Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data | 16. Quarterly Financial Data (Unaudited)
The following table contains selected unaudited quarterly financial data for fiscal years 2012 and 2011.
(a) Includes a goodwill impairment charge of $165 in fiscal 2011 (b) Includes a loss on extinguishment of debt of $68 in fiscal 2011
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Segment And Geographic Data (Tables)
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Sep. 29, 2012
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Segment And Geographic Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Selected Information By Reportable Segment |
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Summary Of Assets And Goodwill By Segment |
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Basis Of Presentation And Summary Of Significant Accounting Policies (Policy)
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Sep. 29, 2012
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Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Public Offering And Stock Split | Initial Public Offering and Stock Split
In October 2012, we filed an initial public offering and sold 29,411,764 shares of common stock at $16.00 per share. Proceeds, net of underwriting fees, of $444 and cash from operations were used to repurchase $455 of 11% Senior Subordinated Notes due September 2016. In conjunction with the initial public offering the Company executed a 12.25 for one stock split of the Company’s common stock. The effect of the stock split on outstanding shares and earnings per share has been retroactively applied to all periods presented.
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Basis Of Presentation | Basis of Presentation
Berry is majority owned by affiliates of Apollo Management, L.P. (“Apollo”) and Graham Partners (“Graham”). Periods presented in these financial statements include fiscal periods ending September 29, 2012 (“fiscal 2012”), October 1, 2011 (“fiscal 2011”), and October 2, 2010 (“fiscal 2010”). Berry, through its wholly-owned subsidiaries operates in four primary segments: Rigid Open Top, Rigid Closed Top, Engineered Materials, and Flexible Packaging. The Company’s customers are located principally throughout the United States, without significant concentration in any one region or with any one customer. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company’s fiscal year is based on fifty-two or fifty-three week periods. Fiscal 2010 represents a fifty-three week period. The Company has evaluated subsequent events through the date the financial statements were issued.
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Consolidation | Consolidation
The consolidated financial statements include the accounts of Berry and its subsidiaries, all of which includes our wholly owned and majority owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Where our ownership of consolidated subsidiaries is less than 100% the non-controlling interests are reflected in stockholders’ equity.
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Revenue Recognition | Revenue Recognition
Revenue from the sales of products is recognized at the time title and risks and rewards of ownership pass to the customer (either when the products reach the free-on-board shipping point or destination depending on the contractual terms), there is persuasive evidence of an arrangement, the sales price is fixed and determinable and collection is reasonably assured. Provisions for certain rebates, sales incentives, trade promotions, coupons, product returns and discounts to customers are accounted for as reductions in gross sales to arrive at net sales. In accordance with the Revenue Recognition standards of the Accounting Standards Codification (“Codification” or “ASC”), the Company provides for these items as reductions of revenue at the later of the date of the sale or the date the incentive is offered. These provisions are based on estimates derived from current program requirements and historical experience.
Shipping, handling, purchasing, receiving, inspecting, warehousing, and other costs of distribution are presented in cost of goods sold in the statements of operations. The Company classifies amounts charged to its customers for shipping and handling in Net sales in the Consolidated Statement of Operations.
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Vendor Rebates, Purchases Of Raw Materials And Concentration Of Risk | Vendor Rebates, Purchases of Raw Materials and Concentration of Risk
The Company receives consideration in the form of rebates from certain vendors. The Company accrues these as a reduction of inventory cost as earned under existing programs, and reflects as a reduction of cost of goods sold at the time that the related underlying inventory is sold to customers.
The largest supplier of the Company’s total resin material requirements represented approximately 20% of purchases in fiscal 2012. The Company uses a variety of suppliers to meet its resin requirements.
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Research And Development | Research and Development
Research and development costs are expensed when incurred. The Company incurred research and development expenditures of $25, $20, and $21 in fiscal 2012, 2011, and 2010, respectively.
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Stock-Based Compensation | Stock-Based Compensation
The compensation guidance of the FASB requires that the compensation cost relating to share-based payment transactions be recognized in financial statements based on alternative fair value models. The share-based compensation cost is measured based on the fair value of the equity or liability instruments issued. As of fiscal 2012, the Company has one share-based compensation plan, the 2006 Equity Incentive Plan, which is more fully described in Note 12. The Company recorded total stock compensation expense of $2, $2, and $1 for fiscal 2012, 2011 and 2010, respectively.
The Company utilizes the Black-Scholes option valuation model for estimating the fair value of the stock options. The model allows for the use of a range of assumptions. Expected volatilities utilized in the Black-Scholes model are based on implied volatilities from traded stocks of peer companies. Similarly, the dividend yield is based on historical experience and the estimate of future dividend yields. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected lives of the grants are derived from historical experience and expected behavior. The fair value for options granted has been estimated at the date of grant using a Black-Scholes model, with the following weighted average assumptions:
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Foreign Currency | Foreign Currency
For the non-U.S. subsidiaries that account in a functional currency other than U.S. Dollars, assets and liabilities are translated into U.S. Dollars using period-end exchange rates. Sales and expenses are translated at the average exchange rates in effect during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss) within stockholders’ equity. Gains and losses resulting from foreign currency transactions, the amounts of which are not material in any period presented are included in the Consolidated Statements of Operations.
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Cash And Cash Equivalents | Cash and Cash Equivalents
All highly liquid investments purchased with a maturity of three months or less from the time of purchase are considered to be cash equivalents.
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Allowance For Doubtful Accounts | Allowance for Doubtful Accounts
The Company’s accounts receivable and related allowance for doubtful accounts are analyzed in detail on a quarterly basis and all significant customers with delinquent balances are reviewed to determine future collectibility. The determinations are based on legal issues (such as bankruptcy status), past history, current financial and credit agency reports, and the experience of the credit representatives. Reserves are established in the quarter in which the Company makes the determination that the account is deemed uncollectible. The Company maintains additional reserves based on its historical bad debt experience. The following table summarizes the activity for fiscal 2012, 2011 and 2010 for the allowance for doubtful accounts:
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Inventories | Inventories
Inventories are stated at the lower of cost or market and are valued using the first-in, first-out method. Management periodically reviews inventory balances, using recent and future expected sales to identify slow-moving and/or obsolete items. The cost of spare parts inventory is charged to manufacturing overhead expense when incurred. We evaluate our reserve for inventory obsolescence on a quarterly basis and review inventory on-hand to determine future salability. We base our determinations on the age of the inventory and the experience of our personnel. We reserve inventory that we deem to be not salable in the quarter in which we make the determination. We believe, based on past history and our policies and procedures, that our net inventory is salable. Inventory as of fiscal 2012 and 2011 was:
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Property, Plant And Equipment | Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the assets ranging from 15 to 25 years for buildings and improvements and two to 10 years for machinery, equipment, and tooling. Leasehold improvements are depreciated over the shorter of the useful life of the improvement or the lease term. Repairs and maintenance costs are charged to expense as incurred. The Company capitalized interest of $5, $3, and $2 in fiscal 2012, 2011, and 2010, respectively. Property, plant and equipment as of fiscal 2012 and 2011 was:
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Long-Lived Assets | Long-lived Assets
Long-lived assets, including property, plant and equipment and definite lived intangible assets are reviewed for impairment at the product line level in accordance with the Property, Plant and Equipment standard of the ASC whenever facts and circumstances indicate that the carrying amount may not be recoverable. Specifically, this process involves comparing an asset’s carrying value to the estimated undiscounted future cash flows the asset is expected to generate over its remaining life. If this process were to result in the conclusion that the carrying value of a long-lived asset would not be recoverable, a write-down of the asset to fair value would be recorded through a charge to operations. Fair value is determined based upon discounted cash flows or appraisals as appropriate. Long-lived assets that are held for sale are reported at the lower of the assets’ carrying amount or fair value less costs related to the assets’ disposition. In connection with our facility rationalizations, we recorded impairment charges totaling $20, $35, and $19 to write-down long-lived assets to their net realizable valuables during fiscal years 2012, 2011, and 2010 respectively.
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Goodwill | Goodwill
The Company follows the principles provided by the Goodwill and Other Intangibles standard of the ASC. Goodwill is not amortized but rather tested annually for impairment. The Company performs their annual impairment test on the first day of the fourth quarter in each respective fiscal year. For purposes of conducting our annual goodwill impairment test, the Company determined that we have five reporting units, Open Top, Rigid Closed Top, Engineered Films, Flexible Packaging and Tapes. Tapes and Engineered Films comprise the Engineered Materials operating segment. We determined that each of the components within our respective reporting units have similar economic characteristics and therefore should be aggregated. We reached this conclusion because within each of our reporting units, we have similar products and production processes which allow us to share assets and resources across the product lines. We regularly re-align our production equipment and manufacturing facilities in order to take advantage of cost savings opportunities, obtain synergies and create manufacturing efficiencies. In addition, we utilize our research and development centers, design center, tool shops, and graphics center which all provide benefits to each of the reporting units and work on new products that can not only benefit one product line, but can benefit multiple product lines. We also believe that the goodwill is recoverable from the overall operations of the unit given the similarity in production processes, synergies from leveraging the combined resources, common raw materials, common research and development, similar margins and similar distribution methodologies. In fiscal 2012 the Company completed its annual test and determined no impairment existed. In fiscal 2011 the Company completed the annual impairment and determined the carrying value of the Specialty Films division, which is now included in the Engineered Materials and Flexible Packaging, exceeded its fair value. The Company performed the second step of its evaluation to calculate the impairment and as a result recorded a goodwill impairment charge of $165 in Restructuring and impairment charges on the Consolidated Statement of Operations in fiscal 2011. In fiscal 2011, we experienced a base volume decline of 11% in out Engineered Materials and Flexible Packaging segments. This base volume decline of 11% occurred because of a pricing strategy that we implemented in our second fiscal quarter and continued throughout the remainder of 2011.
The changes in the carrying amount of goodwill by reportable segment are as follows:
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Deferred Financing Fees | Deferred Financing Fees
Deferred financing fees are being amortized to interest expense using the effective interest method over the lives of the respective debt agreements.
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Intangible Assets | Intangible Assets
Customer relationships are being amortized using an accelerated amortization method which corresponds with the customer attrition rates used in the initial valuation of the intangibles over the estimated life of the relationships which range from 11 to 20 years. Technology intangibles are being amortized using the straight-line method over the estimated life of the technology which is 11 years. License intangibles are being amortized using the straight-line method over the life of the license which is 10 years. Patent intangibles are being amortized using the straight-line method over the shorter of the estimated life of the technology or the patent expiration date ranging from 10 to 20 years, with a weighted-average life of 15 years. The Company evaluates the remaining useful life of intangible assets on a periodic basis to determine whether events and circumstances warrant a revision to the remaining useful life. Trademarks that are expected to remain in use, which are indefinite lived intangible assets, are required to be reviewed for impairment annually. We completed the annual impairment test of our indefinite lived tradenames and noted no impairment. As discussed in Note 10, the Company recorded a $17 impairment charge related to the exit of its building products operations.
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Insurable Liabilities | Insurable Liabilities
The Company records liabilities for the self-insured portion of workers’ compensation, health, product, general and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated by utilizing actuarial valuations based upon historical claims experience.
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Income Taxes | Income Taxes
The Company accounts for income taxes under the asset and liability approach, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the period in which the underlying transactions are recorded. Deferred taxes, with the exception of non-deductible goodwill, are provided for temporary differences between amounts of assets and liabilities as recorded for financial reporting purposes and such amounts as measured by tax laws. If the Company determines that a deferred tax asset arising from temporary differences is not likely to be utilized, the Company will establish a valuation allowance against that asset to record it at its expected realizable value. The Company recognizes uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by relevant taxing authorities, based on the technical merits of the position. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company’s effective tax rate is dependent on many factors including: the impact of enacted tax laws in jurisdictions in which the Company operates; the amount of earnings by jurisdiction, due to varying tax rates in each country; and the Company’s ability to utilize foreign tax credits related to foreign taxes paid on foreign earnings that will be remitted to the United States.
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Comprehensive Loss | Comprehensive Loss
Comprehensive loss is comprised of net loss and other comprehensive losses. Other comprehensive losses include net unrealized gains or losses resulting from currency translations of foreign subsidiaries, changes in the value of our derivative instruments and adjustments to the pension liability.
The accumulated balances related to each component of other comprehensive income (loss) were as follows (amounts below are net of taxes):
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Accrued Rebates | Accrued Rebates
The Company offers various rebates to customers based on purchases. These rebate programs are individually negotiated with customers and contain a variety of different terms and conditions. Certain rebates are calculated as flat percentages of purchases, while others included tiered volume incentives. These rebates may be payable monthly, quarterly, or annually. The calculation of the accrued rebate balance involves significant management estimates, especially where the terms of the rebate involve tiered volume levels that require estimates of expected annual sales. These provisions are based on estimates derived from current program requirements and historical experience. The accrual for customer rebates was $68 and $60 at the end of fiscal 2012 and 2011, respectively and is included in Accrued expenses and other current liabilities.
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Pension | Pension
Pension benefit costs include assumptions for the discount rate, retirement age, and expected return on plan assets. Retiree medical plan costs include assumptions for the discount rate, retirement age, and health-care-cost trend rates. Periodically, the Company evaluates the discount rate and the expected return on plan assets in its defined benefit pension and retiree health benefit plans. In evaluating these assumptions, the Company considers many factors, including an evaluation of the discount rates, expected return on plan assets and the health-care-cost trend rates of other companies; historical assumptions compared with actual results; an analysis of current market conditions and asset allocations; and the views of advisers.
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Net Income (Loss) Per Share | Net Income (Loss) Per Share
The Company calculates basis net income (loss) per share based on the weighted-average number of outstanding common shares. The Company calculates diluted net income (loss) per share based on the weighted-average number of outstanding common shares plus the effect of dilutive securities.
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Use Of Estimates | Use of Estimates
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make extensive use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of sales and expenses. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the event or circumstances giving rise to such changes occur.
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Income Taxes (Activity Related To Gross Unrecognized Tax Benefits) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
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Sep. 29, 2012
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Oct. 01, 2011
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Income Taxes [Abstract] | ||
Beginning unrecognized tax benefits | $ 33 | $ 34 |
Gross increases - tax positions in prior periods | 2 | 3 |
Gross decreases - tax positions in prior periods | (25) | (4) |
Gross increases - from acquisitions | 2 | |
Gross increases - current period tax positions | 1 | |
Settlements | (2) | |
Lapse of statue of limitations | (2) | (1) |
Ending unrecognized tax benefits | $ 8 | $ 33 |
Basis Of Presentation And Summary Of Significant Accounting Policies
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Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies | 1. Basis of Presentation and Summary of Significant Accounting Policies
Background
Berry Plastics Group, Inc. (“Berry” or the “Company”) is a leading provider of value-added plastic consumer packaging and engineered materials with a track record of delivering high-quality customized solutions to our customers. Representative examples of our products include thermoform drink cups, thin-wall containers, blow-molded bottles, specialty closures, prescription vials, specialty plastic films, adhesives and corrosion protection materials. We sell our solutions predominantly into consumer-oriented end-markets, such as food and beverage, healthcare and personal care.
Initial Public Offering and Stock Split
In October 2012, we filed an initial public offering and sold 29,411,764 shares of common stock at $16.00 per share. Proceeds, net of underwriting fees, of $444 and cash from operations were used to repurchase $455 of 11% Senior Subordinated Notes due September 2016. In conjunction with the initial public offering the Company executed a 12.25 for one stock split of the Company’s common stock. The effect of the stock split on outstanding shares and earnings per share has been retroactively applied to all periods presented.
Basis of Presentation
Berry is majority owned by affiliates of Apollo Management, L.P. (“Apollo”) and Graham Partners (“Graham”). Periods presented in these financial statements include fiscal periods ending September 29, 2012 (“fiscal 2012”), October 1, 2011 (“fiscal 2011”), and October 2, 2010 (“fiscal 2010”). Berry, through its wholly-owned subsidiaries operates in four primary segments: Rigid Open Top, Rigid Closed Top, Engineered Materials, and Flexible Packaging. The Company’s customers are located principally throughout the United States, without significant concentration in any one region or with any one customer. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company’s fiscal year is based on fifty-two or fifty-three week periods. Fiscal 2010 represents a fifty-three week period. The Company has evaluated subsequent events through the date the financial statements were issued.
Consolidation
The consolidated financial statements include the accounts of Berry and its subsidiaries, all of which includes our wholly owned and majority owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Where our ownership of consolidated subsidiaries is less than 100% the non-controlling interests are reflected in stockholders’ equity.
Revenue Recognition
Revenue from the sales of products is recognized at the time title and risks and rewards of ownership pass to the customer (either when the products reach the free-on-board shipping point or destination depending on the contractual terms), there is persuasive evidence of an arrangement, the sales price is fixed and determinable and collection is reasonably assured. Provisions for certain rebates, sales incentives, trade promotions, coupons, product returns and discounts to customers are accounted for as reductions in gross sales to arrive at net sales. In accordance with the Revenue Recognition standards of the Accounting Standards Codification (“Codification” or “ASC”), the Company provides for these items as reductions of revenue at the later of the date of the sale or the date the incentive is offered. These provisions are based on estimates derived from current program requirements and historical experience.
Shipping, handling, purchasing, receiving, inspecting, warehousing, and other costs of distribution are presented in cost of goods sold in the statements of operations. The Company classifies amounts charged to its customers for shipping and handling in Net sales in the Consolidated Statement of Operations.
Vendor Rebates, Purchases of Raw Materials and Concentration of Risk
The Company receives consideration in the form of rebates from certain vendors. The Company accrues these as a reduction of inventory cost as earned under existing programs, and reflects as a reduction of cost of goods sold at the time that the related underlying inventory is sold to customers.
The largest supplier of the Company’s total resin material requirements represented approximately 20% of purchases in fiscal 2012. The Company uses a variety of suppliers to meet its resin requirements.
Research and Development
Research and development costs are expensed when incurred. The Company incurred research and development expenditures of $25, $20, and $21 in fiscal 2012, 2011, and 2010, respectively.
Stock-Based Compensation
The compensation guidance of the FASB requires that the compensation cost relating to share-based payment transactions be recognized in financial statements based on alternative fair value models. The share-based compensation cost is measured based on the fair value of the equity or liability instruments issued. As of fiscal 2012, the Company has one share-based compensation plan, the 2006 Equity Incentive Plan, which is more fully described in Note 12. The Company recorded total stock compensation expense of $2, $2, and $1 for fiscal 2012, 2011 and 2010, respectively.
The Company utilizes the Black-Scholes option valuation model for estimating the fair value of the stock options. The model allows for the use of a range of assumptions. Expected volatilities utilized in the Black-Scholes model are based on implied volatilities from traded stocks of peer companies. Similarly, the dividend yield is based on historical experience and the estimate of future dividend yields. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected lives of the grants are derived from historical experience and expected behavior. The fair value for options granted has been estimated at the date of grant using a Black-Scholes model, with the following weighted average assumptions:
In connection with the initial public offering, the Company adopted the Berry Plastics Group, Inc. 2012 Long-Term Incentive Plan (the “2012 Plan”). The purposes of the 2012 Plan are to further the growth of the Company and to reward and incentivize the outstanding performance of our key employees, directors, consultants and other service providers by aligning their interests with those of stockholders through equity-based compensation and enhanced opportunities for ownership of shares of our common stock. The 2012 Plan will be administered by our board of directors and/or the compensation committee thereof, or such other committee of the board of directors as the board of directors may from time to time designate (the committee administering the 2012 Plan is referred to in this description as the “committee”). Among other things, the committee will have the authority to select individuals to whom awards may be granted, to determine the type of awards, to determine the terms and conditions of any such awards, to interpret the terms and provisions of the 2012 Plan and awards granted thereunder and to otherwise administer the plan. Persons who serve or agree to serve as employees of, directors of, consultants to or other service providers of Berry Plastics Group, Inc. on the date of the grant will be eligible to be granted awards under the 2012 Plan. The 2012 Plan authorizes the issuance of up to 9,297,750 shares of common stock pursuant to the grant or exercise of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other equity-based awards. The maximum number of shares of common stock pursuant to incentive stock options will be 929,775 shares of common stock.
Foreign Currency
For the non-U.S. subsidiaries that account in a functional currency other than U.S. Dollars, assets and liabilities are translated into U.S. Dollars using period-end exchange rates. Sales and expenses are translated at the average exchange rates in effect during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss) within stockholders’ equity. Gains and losses resulting from foreign currency transactions, the amounts of which are not material in any period presented are included in the Consolidated Statements of Operations.
Cash and Cash Equivalents
All highly liquid investments purchased with a maturity of three months or less from the time of purchase are considered to be cash equivalents.
Allowance for Doubtful Accounts
The Company’s accounts receivable and related allowance for doubtful accounts are analyzed in detail on a quarterly basis and all significant customers with delinquent balances are reviewed to determine future collectibility. The determinations are based on legal issues (such as bankruptcy status), past history, current financial and credit agency reports, and the experience of the credit representatives. Reserves are established in the quarter in which the Company makes the determination that the account is deemed uncollectible. The Company maintains additional reserves based on its historical bad debt experience. The following table summarizes the activity for fiscal 2012, 2011 and 2010 for the allowance for doubtful accounts:
Inventories
Inventories are stated at the lower of cost or market and are valued using the first-in, first-out method. Management periodically reviews inventory balances, using recent and future expected sales to identify slow-moving and/or obsolete items. The cost of spare parts inventory is charged to manufacturing overhead expense when incurred. We evaluate our reserve for inventory obsolescence on a quarterly basis and review inventory on-hand to determine future salability. We base our determinations on the age of the inventory and the experience of our personnel. We reserve inventory that we deem to be not salable in the quarter in which we make the determination. We believe, based on past history and our policies and procedures, that our net inventory is salable. Inventory as of fiscal 2012 and 2011 was:
Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the assets ranging from 15 to 25 years for buildings and improvements and two to 10 years for machinery, equipment, and tooling. Leasehold improvements are depreciated over the shorter of the useful life of the improvement or the lease term. Repairs and maintenance costs are charged to expense as incurred. The Company capitalized interest of $5, $3, and $2 in fiscal 2012, 2011, and 2010, respectively. Property, plant and equipment as of fiscal 2012 and 2011 was:
Long-lived Assets
Long-lived assets, including property, plant and equipment and definite lived intangible assets are reviewed for impairment at the product line level in accordance with the Property, Plant and Equipment standard of the ASC whenever facts and circumstances indicate that the carrying amount may not be recoverable. Specifically, this process involves comparing an asset’s carrying value to the estimated undiscounted future cash flows the asset is expected to generate over its remaining life. If this process were to result in the conclusion that the carrying value of a long-lived asset would not be recoverable, a write-down of the asset to fair value would be recorded through a charge to operations. Fair value is determined based upon discounted cash flows or appraisals as appropriate. Long-lived assets that are held for sale are reported at the lower of the assets’ carrying amount or fair value less costs related to the assets’ disposition. In connection with our facility rationalizations, we recorded impairment charges totaling $20, $35, and $19 to write-down long-lived assets to their net realizable valuables during fiscal years 2012, 2011, and 2010 respectively.
Goodwill
The Company follows the principles provided by the Goodwill and Other Intangibles standard of the ASC. Goodwill is not amortized but rather tested annually for impairment. The Company performs their annual impairment test on the first day of the fourth quarter in each respective fiscal year. For purposes of conducting our annual goodwill impairment test, the Company determined that we have five reporting units, Open Top, Rigid Closed Top, Engineered Films, Flexible Packaging and Tapes. Tapes and Engineered Films comprise the Engineered Materials operating segment. We determined that each of the components within our respective reporting units have similar economic characteristics and therefore should be aggregated. We reached this conclusion because within each of our reporting units, we have similar products and production processes which allow us to share assets and resources across the product lines. We regularly re-align our production equipment and manufacturing facilities in order to take advantage of cost savings opportunities, obtain synergies and create manufacturing efficiencies. In addition, we utilize our research and development centers, design center, tool shops, and graphics center which all provide benefits to each of the reporting units and work on new products that can not only benefit one product line, but can benefit multiple product lines. We also believe that the goodwill is recoverable from the overall operations of the unit given the similarity in production processes, synergies from leveraging the combined resources, common raw materials, common research and development, similar margins and similar distribution methodologies. In fiscal 2012 the Company completed its annual test and determined no impairment existed. In fiscal 2011 the Company completed the annual impairment and determined the carrying value of the Specialty Films division, which is now included in the Engineered Materials and Flexible Packaging, exceeded its fair value. The Company performed the second step of its evaluation to calculate the impairment and as a result recorded a goodwill impairment charge of $165 in Restructuring and impairment charges on the Consolidated Statement of Operations in fiscal 2011. In fiscal 2011, we experienced a base volume decline of 11% in out Engineered Materials and Flexible Packaging segments. This base volume decline of 11% occurred because of a pricing strategy that we implemented in our second fiscal quarter and continued throughout the remainder of 2011.
The changes in the carrying amount of goodwill by reportable segment are as follows:
Deferred Financing Fees
Deferred financing fees are being amortized to interest expense using the effective interest method over the lives of the respective debt agreements.
Intangible Assets
Customer relationships are being amortized using an accelerated amortization method which corresponds with the customer attrition rates used in the initial valuation of the intangibles over the estimated life of the relationships which range from 11 to 20 years. Technology intangibles are being amortized using the straight-line method over the estimated life of the technology which is 11 years. License intangibles are being amortized using the straight-line method over the life of the license which is 10 years. Patent intangibles are being amortized using the straight-line method over the shorter of the estimated life of the technology or the patent expiration date ranging from 10 to 20 years, with a weighted-average life of 15 years. The Company evaluates the remaining useful life of intangible assets on a periodic basis to determine whether events and circumstances warrant a revision to the remaining useful life. Trademarks that are expected to remain in use, which are indefinite lived intangible assets, are required to be reviewed for impairment annually. We completed the annual impairment test of our indefinite lived tradenames and noted no impairment. As discussed in Note 10, the Company recorded a $17 impairment charge related to the exit of its building products operations.
Insurable Liabilities
The Company records liabilities for the self-insured portion of workers’ compensation, health, product, general and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated by utilizing actuarial valuations based upon historical claims experience.
Income Taxes
The Company accounts for income taxes under the asset and liability approach, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the period in which the underlying transactions are recorded. Deferred taxes, with the exception of non-deductible goodwill, are provided for temporary differences between amounts of assets and liabilities as recorded for financial reporting purposes and such amounts as measured by tax laws. If the Company determines that a deferred tax asset arising from temporary differences is not likely to be utilized, the Company will establish a valuation allowance against that asset to record it at its expected realizable value. The Company recognizes uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by relevant taxing authorities, based on the technical merits of the position. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company’s effective tax rate is dependent on many factors including: the impact of enacted tax laws in jurisdictions in which the Company operates; the amount of earnings by jurisdiction, due to varying tax rates in each country; and the Company’s ability to utilize foreign tax credits related to foreign taxes paid on foreign earnings that will be remitted to the United States.
Comprehensive Loss
Comprehensive loss is comprised of net loss and other comprehensive losses. Other comprehensive losses include net unrealized gains or losses resulting from currency translations of foreign subsidiaries, changes in the value of our derivative instruments and adjustments to the pension liability.
The accumulated balances related to each component of other comprehensive income (loss) were as follows (amounts below are net of taxes):
Accrued Rebates
The Company offers various rebates to customers based on purchases. These rebate programs are individually negotiated with customers and contain a variety of different terms and conditions. Certain rebates are calculated as flat percentages of purchases, while others included tiered volume incentives. These rebates may be payable monthly, quarterly, or annually. The calculation of the accrued rebate balance involves significant management estimates, especially where the terms of the rebate involve tiered volume levels that require estimates of expected annual sales. These provisions are based on estimates derived from current program requirements and historical experience. The accrual for customer rebates was $68 and $60 at the end of fiscal 2012 and 2011, respectively and is included in Accrued expenses and other current liabilities.
Pension
Pension benefit costs include assumptions for the discount rate, retirement age, and expected return on plan assets. Retiree medical plan costs include assumptions for the discount rate, retirement age, and health-care-cost trend rates. Periodically, the Company evaluates the discount rate and the expected return on plan assets in its defined benefit pension and retiree health benefit plans. In evaluating these assumptions, the Company considers many factors, including an evaluation of the discount rates, expected return on plan assets and the health-care-cost trend rates of other companies; historical assumptions compared with actual results; an analysis of current market conditions and asset allocations; and the views of advisers.
Net Income (Loss) Per Share
The Company calculates basis net income (loss) per share based on the weighted-average number of outstanding common shares. The Company calculates diluted net income (loss) per share based on the weighted-average number of outstanding common shares plus the effect of dilutive securities.
Use of Estimates
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make extensive use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of sales and expenses. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the event or circumstances giving rise to such changes occur.
Recently Issued Accounting Pronouncements
In June 2011, the FASB issued Accounting Standards Update No. 2011-05: Comprehensive Income (“ASU 2011-05”). ASU 2011-05 amends current presentation guidance by eliminating the option for an entity to present the components of comprehensive income as part of the statement of changes in stockholder's equity and requires presentation of comprehensive income in a single continuous financial statement or in two separate but consecutive financial statements. The amendments in ASU 2011-05 do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The Company adopted this standard on January 1, 2012 and has included the comprehensive income in a single continuous financial statement within its consolidated financial statements.
In September 2011, the FASB issued Accounting Standards Update No. 2011-08: Testing for Goodwill Impairment (“ASU 2011-08”). ASU 2011-08 amends current goodwill impairment testing guidance by providing entities with an option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. ASU 2011-08 will be effective for interim and annual goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of ASU 2011-08 is not expected to have a material impact on the Company's consolidated financial statements.
In December 2011, the FASB issued Accounting Standards Update No. 2011-12: Comprehensive Income (Topic 220), Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (“ASU 2011-12”). This ASU 2011-12 defers the ASU 2011-05 requirement that companies present reclassification adjustments for each component of accumulated other comprehensive income (AOCI) in both net income and other comprehensive income (OCI) on the face of the financial statements. Companies are still required to present reclassifications out of AOCI on the face of the financial statements or disclose those amounts in the notes to the financial statements. The ASU also defers the requirement to report reclassification adjustments in interim periods. The Company adopted this standard on January 1, 2012 and has included the comprehensive income in a single continuous financial statement within its consolidated financial statements.
In July 2012, the FASB issued Accounting Standards Update No. 2012-02: Intangibles – Goodwill and Other (Topic 350), Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). This ASU 2012-02 adds on optional qualitative assessment for determining whether an indefinite-lived intangible asset is impaired, similar to the goodwill guidance issued in ASU 2011-08. Companies have the option to first perform a qualitative assessment to determine whether it is more likely than not (a likelihood of more than 50%) that an indefinite-lived intangible asset is impaired. If a company determines that it is more likely than not that the fair value of such an asset exceeds its carrying value amount, it would not need to calculate the fair value of the asset in that year. However, if a company concludes otherwise, it must calculate the fair value of the asset, compare that value with its carrying amount and record an impairment charge, if any. ASU 2012-02 becomes effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 is not expected to have a material impact on the Company’s consolidated financial statements.
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Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified |
Sep. 29, 2012
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Oct. 01, 2011
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Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 3 | $ 4 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 84,696,218 | 84,696,218 |
Common stock, shares outstanding | 83,188,488 | 83,863,047 |
Related Party Transactions
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12 Months Ended |
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Sep. 29, 2012
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Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions
Management Fee
The Company is charged a management fee by affiliates of Apollo and Graham for the provision of management consulting and advisory services provided throughout the year. The management fee is the greater of $3 or 1.25% of adjusted EBITDA. The management fees are classified in Other operating expenses in the Statement of Operations and the management services agreement with Apollo and Graham terminated upon completion of the initial public offering completed on October 3, 2012.
Total management fees charged by Apollo and Graham were $9, $9, and $8 in fiscal 2012, 2011, and 2010, respectively. The Company paid $8 and $6 to entities affiliated with Apollo and $1 to entities affiliated with Graham for fiscal 2012 and 2011, respectively. In connection with the Rexam SBC acquisition, Berry management and the sponsors received a transaction fee of $5.
Other Related Party Transactions
Certain of our management, stockholders and related parties and its affiliates have independently acquired and held financial debt instruments of the Company. During fiscal 2010 and 2012, interest expense related to this debt includes $8 and $2, respectively.
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Document And Entity Information (USD $)
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12 Months Ended | ||
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Sep. 29, 2012
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Dec. 17, 2012
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Mar. 31, 2012
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Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 29, 2012 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2012 | ||
Entity Registrant Name | BERRY PLASTICS GROUP INC | ||
Entity Central Index Key | 0001378992 | ||
Current Fiscal Year End Date | --09-29 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Trading Symbol | bery | ||
Entity Common Stock, Shares Outstanding | 112,717,783 | ||
Entity Public Float | $ 0 |
Stockholders' Equity
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Sep. 29, 2012
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Stockholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | 12. Stockholders’ Equity
2006 Equity Incentive Plan
In connection with Apollo’s acquisition of the Company, we adopted an equity incentive plan pursuant to which options to acquire up to 7,071,337 shares of the Company’s common stock may be granted. Prior to fiscal 2011, the plan was amended to allow for an additional 5,267,500 options to be granted. Options granted under the 2006 Equity Incentive Plan may not be assigned or transferred, except to the Company or by will or the laws of descent or distribution. The 2006 Equity Incentive Plan terminates ten years after adoption and no options may be granted under the plan thereafter. The 2006 Equity Incentive Plan allows for the issuance of non-qualified options, options intended to qualify as “incentive stock options” within the meaning of the Internal Revenue Code of 1986, as amended, and stock appreciation rights. The employees participating in the 2006 Equity Incentive Plan receive options and stock appreciation rights under the 2006 Equity Incentive Plan pursuant to individual option and stock appreciation rights agreements, the terms and conditions of which are substantially identical. Each option agreement provides for the issuance of options to purchase common stock of the Company. Options granted under the 2006 Equity Incentive Plan had an exercise price per share that either (1) was fixed at the fair market value of a share of common stock on the date of grant or (2) commenced at the fair market value of a share of common stock on the date of grant and increases at the rate of 15% per year during the term. Some options granted under the plan become vested and exercisable over a five-year period based on continued service. Other options become vested and exercisable based on the achievement by the Company of certain financial targets. Upon a change in control, the vesting schedule, with respect to certain options, accelerate for a portion of the shares subject to such options.
The Company recognized total stock based compensation of $2 for fiscal 2012 and 2011 and $1 for fiscal 2010.
Information related to the 2006 Equity Incentive Plan as of the fiscal year-end 2012 and 2011 is as follows:
The fair value for options granted has been estimated at the date of grant using a Black-Scholes model, generally with the following weighted average assumptions:
The following table summarizes information about the options outstanding as of fiscal 2012:
Redeemable Common Stock
The Company has common stock outstanding to former employees that will be repurchased by the Company. Redemption of this common stock will be based on the fair value of the stock on the fixed redemption date and this redemption is out of the control of the Company. This redeemable common stock is recorded at its fair value in temporary equity and changes in the fair value are recorded in additional paid in capital each period. Under the 2006 Equity Incentive Plan, the exercise price for option awards is the fair market value of common stock on the date of grant. Historically, the fair market value of a share of common stock was determined by the Board of Directors by applying industry-appropriate multiples to current EBITDA. This valuation took into account a level of net debt that excluded cash required for working capital purposes. The categorization of the framework used to price these liabilities is considered a Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. Upon completion of a successful initial public offering, the redemption requirement terminates and the Company is no longer required to repurchase these shares. The fair value as of the end of fiscal 2012 and 2011 is $23 and $16, respectively
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Related Party Transactions (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
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Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Related Party Transaction [Line Items] | |||
Potential management fee | $ 3 | ||
Potential management fee as a percentage of EBITDA | 1.25% | ||
Transaction fee received | 5 | ||
Apollo And Graham [Member]
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Related Party Transaction [Line Items] | |||
Management fee | 9 | 9 | 8 |
Entities Affiliated With Apollo [Member]
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Related Party Transaction [Line Items] | |||
Management fee | 8 | 6 | |
Entities Affiliated With Graham [Member]
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Related Party Transaction [Line Items] | |||
Management fee | $ 1 |
Guarantor And Non-Guarantor Financial Information (Narrative) (Details)
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Sep. 29, 2012
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Guarantor And Non-Guarantor Financial Information [Abstract] | |
Percentage ownership in guarantor subsidiaries | 100.00% |
Consolidated Statements Of Operations And Comprehensive Income (Loss) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified |
12 Months Ended | ||
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Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Consolidated Statements Of Operations And Comprehensive Income (Loss) [Abstract] | |||
Net sales | $ 4,766 | $ 4,561 | $ 4,257 |
Costs and expenses: | |||
Cost of goods sold | 3,949 | 3,878 | 3,667 |
Selling, general and administrative | 308 | 275 | 272 |
Amortization of intangibles | 109 | 106 | 107 |
Restructuring and impairment charges | 31 | 221 | 41 |
Other operating expenses | 44 | 39 | 46 |
Operating income | 325 | 42 | 124 |
Other expense (income) | (7) | 61 | (27) |
Interest expense | 328 | 327 | 313 |
Income (loss) before income taxes | 4 | (346) | (162) |
Income tax expense (benefit) | 2 | (47) | (49) |
Net income (loss) | 2 | (299) | (113) |
Comprehensive income (loss): | |||
Currency translation | 6 | (10) | 6 |
Interest rate hedges | 4 | (8) | |
Other Comprehensive Income (Loss),Defined benefit pension and retiree health benefit plans | (14) | (14) | (12) |
Provision for income taxes related to other comprehensive income items | 5 | 7 | 7 |
Comprehensive income (loss) | $ 3 | $ (324) | $ (112) |
Net income (loss) per share: | |||
Basic | $ 0.02 | $ (3.55) | $ (1.34) |
Diluted | $ 0.02 | $ (3.55) | $ (1.34) |
Weighted-average number of shares outstanding: (in thousands) | |||
Basic | 83,435 | 84,121 | 84,525 |
Diluted | 86,644 | 84,121 | 84,525 |
Lease And Other Commitments And Contingencies
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Lease And Other Commitments And Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease And Other Commitments And Contingencies | 6. Lease and Other Commitments and Contingencies
The Company leases certain property, plant and equipment under long-term lease agreements. Property, plant, and equipment under capital leases are reflected on the Company’s balance sheet as owned. The Company entered into new capital lease obligations totaling $45, $29, and $7 during fiscal 2010, 2011, and 2012, respectively, with various lease expiration dates through 2019. The Company records amortization of capital leases in Cost of goods sold in the Consolidated Statement of Operations. Assets under operating leases are not recorded on the Company’s balance sheet. Operating leases expire at various dates in the future with certain leases containing renewal options. The Company had minimum lease payments or contingent rentals of $15 and $14 and asset retirement obligations of $5 and $6 as of fiscal 2012 and 2011, respectively. Total rental expense from operating leases was $56, $59, and $56 in fiscal 2012, 2011, and 2010, respectively.
Future minimum lease payments for capital leases and noncancellable operating leases with initial terms in excess of one year as of fiscal year-end 2012, are as follows:
In September 2012, the Company entered into a sale-leaseback transaction pursuant to which it sold its warehouse facility located in Lawrence , Kansas. The Company received net proceeds of $20 and resulted in the Company realizing a deferred gain of $1 which will be offset against the future lease payments over the life of the lease.
The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its financial position, results of operations or cash flows. The Company has various purchase commitments for raw materials, supplies and property and equipment incidental to the ordinary conduct of business.
As of the end of fiscal 2012, the Company employed over 15,000 employees. Approximately 11% of our employees are covered by collective bargaining agreements. Four of our 12 agreements, covering approximately 1,200 employees, were scheduled for renegotiation in fiscal 2012 and each of them was renegotiated. The remaining agreements expire after fiscal 2012.
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Goodwill, Intangible Assets And Deferred Costs
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Goodwill, Intangible Assets And Deferred Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, Intangible Assets And Deferred Costs | 5. Goodwill, Intangible Assets and Deferred Costs
The following table sets forth the gross carrying amount and accumulated amortization of the Company’s goodwill, intangible assets and deferred costs as of the fiscal year-end 2012 and 2011:
The Company recorded a goodwill impairment charge in the Engineered Materials and Flexible Packaging segments in fiscal 2011. See Note 1 for further discussion. Future amortization expense for definite lived intangibles as of fiscal 2012 for the next five fiscal years is $103, $95, $86, $79 and $68 each year for fiscal years ending 2013, 2014, 2015, 2016, and 2017, respectively.
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Subsequent Events
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12 Months Ended |
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Sep. 29, 2012
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Subsequent Events [Abstract] | |
Subsequent Events |
17. Subsequent Events
In connection with the initial public offering, the Company adopted the Berry Plastics Group, Inc. 2012 Long-Term Incentive Plan “2012 Plan.” The purposes of the 2012 Plan are to further the growth of the Company and to reward and incentivize the outstanding performance of our key employees, directors, consultants and other service providers by aligning their interests with those of stockholders through equity-based compensation and enhanced opportunities for ownership of shares of our common stock. The 2012 Plan will be administered by our board of directors and/or the compensation committee thereof, or such other committee of the board of directors as the board of directors may from time to time designate (the committee administering the 2012 Plan is referred to in this description as the “committee”). Among other things, the committee will have the authority to select individuals to whom awards may be granted, to determine the type of awards, to determine the terms and conditions of any such awards, to interpret the terms and provisions of the 2012 Plan and awards granted thereunder and to otherwise administer the plan. Persons who serve or agree to serve as employees of, directors of, consultants to or other service providers of Berry Plastics Group, Inc. on the date of the grant will be eligible to be granted awards under the 2012 Plan. The 2012 Plan authorizes the issuance of up to 9,297,750 shares of common stock pursuant to the grant or exercise of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other equity-based awards. The maximum number of shares of common stock pursuant to incentive stock options will be 929,775 shares of common stock.
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Segment And Geographic Data
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Segment And Geographic Data | 13. Segment and Geographic Data
Berry’s operations are organized into four reportable segments: Rigid Open Top, Rigid Closed Top, Engineered Materials, and Flexible Packaging. The Company has manufacturing and distribution centers in the United States, Canada, Mexico, Belgium, Australia, Germany, Brazil, Malaysia, and India. The North American operation represents 96% of the Company’s net sales, 98% of total long-lived assets, and 99% of the total assets. Selected information by reportable segment is presented in the following table.
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Stockholders' Equity (Summary Of Options Outstanding By Exercise Price Range) (Details) (USD $)
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12 Months Ended | |
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Sep. 29, 2012
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Oct. 01, 2011
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Stockholders' Equity [Abstract] | ||
Range of exercise price, lower limit | $ 3.04 | $ 3.04 |
Range of exercise price, upper limit | $ 15.04 | $ 9.21 |
Number outstanding | 10,741,090 | |
Weighted average remaining contractual life | 5 years | |
Weighted average exercise price | $ 7.76 | |
Number exercisable | 7,327,612 | 7,318,346 |
Retirement Plan
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Retirement Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plan | 9. Retirement Plan
The Company maintains six defined benefit pension plans which cover certain manufacturing facilities. The Company also maintains a retiree health plan, which covers certain healthcare and life insurance benefits for certain retired employees and their spouses. Each of the six defined benefit plans and the retiree health plan are frozen plans. The Company uses fiscal year-end as a measurement date for the retirement plans.
The Company sponsors two defined contribution 401(k) retirement plans covering substantially all employees. Contributions are based upon a fixed dollar amount for employees who participate and percentages of employee contributions at specified thresholds. Contribution expense for these plans was $7, $6, and $6 for fiscal 2012, 2011, and 2010, respectively. The Company participates in one multiemployer plan. Contributions to the plan are based on specific percentages of employee compensation and are immaterial. The projected benefit obligations of the Company’s plans presented herein are equal to the accumulated benefit obligations of such plans. The tables below exclude the obligations related to the foreign plans. The net liability for foreign plans is approximately $3. The net amount of liability recognized is included in Other long-term liabilities on the Consolidated Balance Sheets.
At the end of fiscal 2012 the Company had $53 of net unrealized losses recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets. The Company expects $2 to be realized in fiscal 2013.
The following table presents significant weighted-average assumptions used to determine benefit obligation and benefit cost for the fiscal years ended:
In evaluating the expected return on plan assets, Berry considered its historical assumptions compared with actual results, an analysis of current market conditions, asset allocations, and the views of advisors. The return on plan assets is derived from target allocations and historical yield by asset type. Health-care-cost trend rates were assumed to increase at an annual rate of 7.0% in 2012 and thereafter. A one-percentage-point change in these assumed health care cost trend rates would not have a material impact on our postretirement benefit obligation.
In accordance with the guidance from the FASB for employers’ disclosure about postretirement benefit plan assets the table below discloses fair values of each pension plan asset category and level within the fair value hierarchy in which it falls. There was no material changes or transfers between level 3 assets and the other levels.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the fiscal years ending as follows:
Net pension and retiree health benefit expense included the following components as of fiscal 2012 and 2011:
Our defined benefit pension plan asset allocations as of fiscal year-end 2012 and 2011 are as follows:
The Company’s retirement plan assets are invested with the objective of providing the plans the ability to fund current and future benefit payment requirements while minimizing annual Company contributions. The plans’ asset allocation strategy reflects a long-term growth strategy with approximately 40-50% allocated to growth investments and 40-50% allocated to fixed income investments and 5-10% in other, including cash. The retirement plans held $11 principal of the Company’s 10 ¼% Senior Subordinated Notes at the end of fiscal 2012 and 2011, respectively. The Company re-addresses the allocation of its investments on a regular basis.
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Lease And Other Commitments And Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
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Sep. 29, 2012
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Oct. 01, 2011
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Lease And Other Commitments And Contingencies [Line Items] | |||
New capital lease obligations | $ 45 | $ 29 | $ 7 |
Lease expirations, final year | 2019 | ||
Minimum lease payments or contingent rentals | 15 | 14 | |
Asset retirement obligations | 5 | 6 | |
Rent expense from operating leases | 56 | 59 | 56 |
Sale leaseback transaction, net proceeds | 20 | ||
Sale leaseback transaction, deferred gain | $ 1 | ||
Percentage of employees covered by collective bargaining agreements | 11.00% | ||
Number of collective bargaining agreements | 12 | ||
Scheduled For Renegotiation In Fiscal 2012 [Member]
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Lease And Other Commitments And Contingencies [Line Items] | |||
Number of employees | 1,200 | ||
Number of collective bargaining agreements | 4 | ||
Minimum [Member]
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Lease And Other Commitments And Contingencies [Line Items] | |||
Number of employees | 15,000 |
Accrued Expenses, Other Current Liabilities And Other Long-Term Liabilities
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Accrued Expenses, Other Current Liabilities And Other Long-Term Liabilities | 7. Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities
The following table sets forth the totals included in Accrued expenses and other current liabilities as of fiscal year-end 2012 and 2011.
The following table sets forth the totals included in Other long-term liabilities as of fiscal year-end 2012 and 2011.
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Income Taxes
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Income Taxes | 8. Income Taxes
The Company is being taxed at the U.S. corporate level as a C-Corporation and has provided U.S. Federal, State and foreign income taxes.
Significant components of income tax expense (benefit) for the fiscal years ended 2012, 2011 and 2010 are as follows:
U.S. income (loss) from continuing operations before income taxes was $2, $(342), and $(140) for fiscal 2012, 2011, and 2010, respectively. Non-U.S. income (loss) from continuing operations before income taxes was $2, $(4), and $(22) for fiscal 2012, 2011, and 2010, respectively.
The reconciliation between U.S. Federal income taxes at the statutory rate and the Company’s benefit for income taxes on continuing operations for fiscal 2012, 2011, and 2010 are as follows:
Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax liability as of fiscal 2012 and 2011 are as follows:
In the United Sates the Company had $911 of Federal net operating loss carryforwards, which will be available to offset future taxable income. As of fiscal year-end 2012, the Company had foreign net operating loss carryforwards of $129, which will be available to offset future taxable income. If not used, the Federal net operating loss carryforwards will expire in future years beginning 2026 through 2031. AMT credit carryforwards totaling $9 are available to the Company indefinitely to reduce future years’ Federal income taxes.
The Company believes that it will not generate sufficient future taxable income to realize the tax benefits in certain foreign jurisdictions related to the deferred tax assets. The Company also has certain state net operating losses that may expire before they are fully utilized. Therefore, the Company has provided a full valuation allowance against certain of its foreign net operating losses and a valuation allowance against certain of its state net operating losses included within the deferred tax assets.
Prior changes in ownership have created limitations under Sec. 382 of the internal revenue code on annual usage of net operating loss carryforwards. However, the Company’s Federal net operating loss carryforwards are available for immediate use. As part of the effective tax rate calculation, if we determine that a deferred tax asset arising from temporary differences is not likely to be utilized, we will establish a valuation allowance against that asset to record it at its expected realizable value. The Company has not provided a valuation allowance on its Federal net operating loss carryforwards in the United States because it has determined that future reversals of its temporary taxable differences will occur in the same periods and are of the same nature as the temporary differences giving rise to the deferred tax assets. Our valuation allowance against deferred tax assets was $51 and $43 as of fiscal year-end 2012 and 2011, respectively, related to the foreign operating loss carryforwards, U.S. State operating loss carryforwards, and foreign tax credit carryforwards. The Company paid cash taxes of $2, $2 and $3 in fiscal 2012, 2011, and 2010, respectively. Uncertain Tax Positions We adopted the provisions of the Income Taxes standard of the Codification. This interpretation clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with guidance provide by FASB and prescribes a recognition threshold of more-likely-than-not to be sustained upon examination. Our policy to include interest and penalties related to gross unrecognized tax benefits within our provision for income taxes did not change. There was no adjustment to retained earnings upon adoption. The following table summarizes the activity related to our gross unrecognized tax benefits from year-end fiscal 2011 to year-end fiscal 2012:
The $25 gross decrease of tax positions related to prior periods and did not have a material impact on our effective tax rate due to a similar decrease in the related deferred tax asset. The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was $5 for fiscal year-end 2011 and 2012. As of fiscal year-end 2012, we had $1 accrued for payment of interest and penalties related to our uncertain tax positions. Our penalties and interest related to uncertain tax positions are included in income tax expense.
We and our subsidiaries are routinely examined by various taxing authorities. Although we file U.S. Federal, U.S. State, and foreign tax returns, our major tax jurisdiction is the U.S. The IRS has completed an examination of our 2003 tax year. The Company is currently under examination by the IRS for U.S. Federal tax years 2010 and 2011. Our 2004 - 2009 tax years remain subject to examination by the IRS. There are various other on-going audits in various other jurisdictions that are not material to our financial statements.
As of the end of fiscal 2012, we had unremitted earnings from foreign subsidiaries including earnings that have been or are intended to be permanently reinvested for continued use in foreign operations, accordingly, no provision for US Federal or State income taxes has been provided thereon. If distributed, those earnings would result in additional income tax expense at approximately the U.S. statutory rate. Determination of the amount of unrecognized deferred US income tax liability is not practicable due to the complexities associated with its hypothetical calculation nor is it considered to be material. We have identified non U.S. funds from Germany, Australia, Malaysia and India that are not permanently reinvested and have recognized deferred tax liabilities for additional tax expense that we expect to incur upon repatriation of earnings that are not sourced from previously taxed income.
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Restructuring And Impairment Charges
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Restructuring And Impairment Charges [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring And Impairment Charges | 10. Restructuring and Impairment Charges
The Company announced various restructuring plans in the last three fiscal years which included shutting down facilities in all four of the Company’s operating segments.
During fiscal 2010, the Company announced the intention to shut down four manufacturing facilities within its Engineered Materials division. The affected business accounted for $91 of annual net sales with majority of the operations transferred to other facilities. The Company also announced the intention to shut down a manufacturing facility within its Flexible Packaging division. The affected business accounted for less than $22 of annual net sales with majority of the operations transferred to other facilities. The Company recorded $19 of non-cash asset impairment costs in fiscal 2010 related to these restructuring plans and has been reported as Restructuring and impairment charges in the Consolidated Statements of Operations. These impairments were for buildings and equipment that exceeded net realizable value as of the valuation dates.
During fiscal 2011, the Company announced the intention to shut down two facilities within its Engineered Materials division. The affected business accounted for approximately $106 of annual net sales with the majority of the operations transferred to other facilities. The Company also announced its intention to shut down a manufacturing location within its Flexible Packaging division. The affected business accounted for approximately $24 of annual net sales with the majority of the operations transferred to other facilities. The Company also announced its intention to shut down a manufacturing location within its Rigid Closed Top division. The affected business accounted for approximately $14 of annual net sales with the majority of the operations transferred to other facilities. The Company recorded $35 of non-cash asset impairment costs in fiscal 2011 related to these restructuring plans and has been reported as Restructuring and impairment charges in the Consolidated Statements of Operations. These impairments were for buildings and equipment that exceeded net realizable value as of the valuation dates.
During fiscal 2012, the Company announced the intention to shut down three facilities one each in Rigid Closed Top, Engineered Materials and Flexible Packaging divisions. The affected Rigid Closed Top, Engineered Materials, and Flexible Packaging businesses accounted for approximately $14, $71, and $24 of annual net sales, with the majority of the operations transferred to other facilities. During the first fiscal quarter the Company made the decision to exit operations in the Engineered Materials division. This decision resulted in non-cash impairment charges of $17 related to certain customer lists deemed to have no further value recorded in Restructuring and impairment charges on the Consolidated Statement of Operations. The exited operations were immaterial to the Company and Engineered Materials segment.
The table below sets forth the Company’s estimate of the total cost of the restructuring programs since 2007, the portion recognized through fiscal year-end 2012 and the portion expected to be recognized in a future period:
The tables below sets forth the significant components of the restructuring charges recognized for the fiscal years ended 2012 2011 and 2010, by segment:
The table below sets forth the activity with respect to the restructuring accrual as of fiscal 2012 and 2011:
The restructuring costs accrued as of fiscal year-end 2012 will result in future cash outflows, which are not expected to be material.
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Income Taxes (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
|
Income Taxes [Line Items] | |||
U.S. loss from continuing operations before income taxes | $ 2 | $ (342) | $ (140) |
Non-U.S. loss from continuing operations before income taxes | 2 | (4) | (22) |
AMT credit carryforwards | 9 | ||
Deferred tax assets, valuation allowance | 51 | 43 | |
Cash paid for taxes | 2 | 2 | 3 |
Unrecognized tax benefits that would affect effective tax rate if recognized | 5 | 5 | |
Interest and penalties accrued for uncertain tax positions | 1 | ||
Gross decreases - tax positions in prior periods | 25 | 4 | |
Federal [Member]
|
|||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 911 | ||
Net operating loss carryforwards, expirations | beginning 2026 through 2031 | ||
Foreign [Member]
|
|||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 129 | ||
Minimum [Member] | Federal [Member]
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|||
Income Taxes [Line Items] | |||
Open tax years | 2004 | ||
Maximum [Member] | Federal [Member]
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Income Taxes [Line Items] | |||
Open tax years | 2009 |
Segment And Geographic Data (Narrative) (Details)
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12 Months Ended |
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Sep. 29, 2012
segment
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Segment Reporting Information [Line Items] | |
Number of reporting segments | 4 |
Net Sales [Member] | North America [Member]
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Segment Reporting Information [Line Items] | |
Concentration risk, percentage | 96.00% |
Long-Lived Assets [Member] | North America [Member]
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Segment Reporting Information [Line Items] | |
Concentration risk, percentage | 98.00% |
Assets, Total [Member] | North America [Member]
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Segment Reporting Information [Line Items] | |
Concentration risk, percentage | 99.00% |
Income Taxes (Reconciliation From Federal Income Tax To Tax Benefit) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Income Taxes [Abstract] | |||
U.S. Federal income tax benefit at the statutory rate | $ 1 | $ (121) | $ (57) |
U.S. State income tax expense, net of valuation allowance | (1) | 8 | (8) |
Impairment of goodwill | 58 | ||
Permanent differences | 1 | 1 | 2 |
Transaction costs | 1 | 3 | |
Changes in foreign valuation allowance | 1 | 3 | 3 |
Rate differences between U.S. and foreign | 1 | 1 | 4 |
Other | (1) | 2 | 4 |
Expense (benefit) for income taxes | $ 2 | $ (47) | $ (49) |
Accrued Expenses, Other Current Liabilities And Other Long-Term Liabilities (Summary Of Other Long-Term Liabilities) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
|
Oct. 01, 2011
|
---|---|---|
Accrued Expenses, Other Current Liabilities And Other Long-Term Liabilities [Abstract] | ||
Lease retirement obligation | $ 20 | $ 20 |
Sale-lease back deferred gain | 34 | 35 |
Pension liability | 84 | 79 |
Other | 28 | 36 |
Other long-term liabilities | $ 166 | $ 170 |
Guarantor And Non-Guarantor Financial Information (Condensed Supplemental Consolidated Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
|
Oct. 01, 2011
|
Oct. 02, 2010
|
Sep. 26, 2009
|
---|---|---|---|---|
Condensed Consolidating Financial Information [Line Items] | ||||
Cash and cash equivalents | $ 87 | $ 42 | $ 148 | $ 10 |
Accounts receivable, net of allowance | 455 | 543 | ||
Inventories | 535 | 578 | ||
Prepaid expenses and other current | 156 | 92 | ||
Total current assets | 1,233 | 1,255 | ||
Property, plant and equipment, net | 1,216 | 1,250 | ||
Intangible assets, net | 2,636 | 2,704 | ||
Other assets | 21 | 8 | ||
Total assets | 5,106 | 5,217 | ||
Accounts payable | 306 | 352 | ||
Accrued and other current liabilities | 300 | 286 | ||
Long-term debt - current portion | 40 | 46 | ||
Total current liabilities | 646 | 684 | ||
Long-term debt | 4,431 | 4,581 | ||
Deferred tax liabilities | 315 | 233 | ||
Other long term liabilities | 166 | 170 | ||
Total long-term liabilities | 4,912 | 4,984 | ||
Total liabilities | 5,558 | 5,668 | ||
Redeemable shares | 23 | 16 | ||
Total Equity | (475) | (467) | (141) | (20) |
Total liabilities and stockholders' equity (deficit) | 5,106 | 5,217 | ||
Parent Company [Member]
|
||||
Condensed Consolidating Financial Information [Line Items] | ||||
Intercompany receivable | 243 | 159 | ||
Prepaid expenses and other current | 120 | 62 | ||
Total current assets | 363 | 221 | ||
Intangible assets, net | 8 | 5 | ||
Investment in Subsidiaries | 254 | 282 | ||
Total assets | 625 | 508 | ||
Accrued and other current liabilities | 18 | 12 | ||
Total current liabilities | 18 | 12 | ||
Long-term debt | 736 | 697 | ||
Deferred tax liabilities | 315 | 233 | ||
Other long term liabilities | 8 | 17 | ||
Total long-term liabilities | 1,059 | 947 | ||
Total liabilities | 1,077 | 959 | ||
Redeemable shares | 23 | 16 | ||
Total Equity | (475) | (467) | ||
Total liabilities and stockholders' equity (deficit) | 625 | 508 | ||
Issuer [Member]
|
||||
Condensed Consolidating Financial Information [Line Items] | ||||
Cash and cash equivalents | 66 | 20 | 132 | 7 |
Accounts receivable, net of allowance | 60 | 80 | ||
Intercompany receivable | 3,800 | 4,078 | ||
Inventories | 83 | 98 | ||
Prepaid expenses and other current | 17 | 10 | ||
Total current assets | 4,026 | 4,286 | ||
Property, plant and equipment, net | 113 | 129 | ||
Intangible assets, net | 184 | 207 | ||
Investment in Subsidiaries | 615 | 417 | ||
Other assets | 10 | |||
Total assets | 4,948 | 5,039 | ||
Accounts payable | 84 | 98 | ||
Accrued and other current liabilities | 159 | 147 | ||
Long-term debt - current portion | 35 | 32 | ||
Total current liabilities | 278 | 277 | ||
Long-term debt | 4,542 | 4,688 | ||
Other long term liabilities | 37 | 68 | ||
Total long-term liabilities | 4,579 | 4,756 | ||
Total liabilities | 4,857 | 5,033 | ||
Total Equity | 91 | 6 | ||
Total liabilities and stockholders' equity (deficit) | 4,948 | 5,039 | ||
Eliminations [Member]
|
||||
Condensed Consolidating Financial Information [Line Items] | ||||
Cash and cash equivalents | ||||
Intercompany receivable | (4,117) | (4,237) | ||
Prepaid expenses and other current | (11) | |||
Total current assets | (4,128) | (4,237) | ||
Intangible assets, net | (10) | (7) | ||
Investment in Subsidiaries | (869) | (699) | ||
Other assets | (637) | (510) | ||
Total assets | (5,644) | (5,453) | ||
Accrued and other current liabilities | (13) | (12) | ||
Intercompany payable | (4,117) | (4,237) | ||
Long-term debt - current portion | 12 | |||
Total current liabilities | (4,130) | (4,237) | ||
Long-term debt | (850) | (807) | ||
Other long term liabilities | (3) | (17) | ||
Total long-term liabilities | (853) | (824) | ||
Total liabilities | (4,983) | (5,061) | ||
Total Equity | (661) | (392) | ||
Total liabilities and stockholders' equity (deficit) | (5,644) | (5,453) | ||
Guarantor Subsidiaries [Member]
|
||||
Condensed Consolidating Financial Information [Line Items] | ||||
Cash and cash equivalents | 5 | 2 | ||
Accounts receivable, net of allowance | 336 | 411 | ||
Intercompany receivable | 74 | |||
Inventories | 414 | 445 | ||
Prepaid expenses and other current | 9 | 9 | ||
Total current assets | 833 | 870 | ||
Property, plant and equipment, net | 1,023 | 1,048 | ||
Intangible assets, net | 2,343 | 2,447 | ||
Other assets | 10 | 7 | ||
Total assets | 4,209 | 4,372 | ||
Accounts payable | 195 | 231 | ||
Accrued and other current liabilities | 120 | 126 | ||
Intercompany payable | 3,966 | 4,167 | ||
Total current liabilities | 4,281 | 4,524 | ||
Other long term liabilities | 119 | 97 | ||
Total long-term liabilities | 119 | 97 | ||
Total liabilities | 4,400 | 4,621 | ||
Total Equity | (191) | (249) | ||
Total liabilities and stockholders' equity (deficit) | 4,209 | 4,372 | ||
Non-Guarantor Subsidiaries [Member]
|
||||
Condensed Consolidating Financial Information [Line Items] | ||||
Cash and cash equivalents | 21 | 17 | 14 | 3 |
Accounts receivable, net of allowance | 59 | 52 | ||
Inventories | 38 | 35 | ||
Prepaid expenses and other current | 21 | 11 | ||
Total current assets | 139 | 115 | ||
Property, plant and equipment, net | 80 | 73 | ||
Intangible assets, net | 111 | 52 | ||
Other assets | 638 | 511 | ||
Total assets | 968 | 751 | ||
Accounts payable | 27 | 23 | ||
Accrued and other current liabilities | 16 | 13 | ||
Intercompany payable | 151 | 70 | ||
Long-term debt - current portion | 5 | 2 | ||
Total current liabilities | 199 | 108 | ||
Long-term debt | 3 | 3 | ||
Other long term liabilities | 5 | 5 | ||
Total long-term liabilities | 8 | 8 | ||
Total liabilities | 207 | 116 | ||
Total Equity | 761 | 635 | ||
Total liabilities and stockholders' equity (deficit) | $ 968 | $ 751 |
Restructuring And Impairment Charges (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Restructuring And Impairment Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Estimated Costs For Restructuring Programs |
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Components Of Restructuring Charges By Segment |
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Summary Of Activity In Restructuring Accrual |
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Long-Term Debt (Summary Of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
|
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,480 | |
Debt discount, net | (9) | (13) |
Capital leases and other | 91 | 100 |
Debt and capital lease obligations | 4,471 | 4,627 |
Less current portion of long-term debt | (40) | (46) |
Long-term debt, less current portion | 4,431 | 4,581 |
Term Loan [Member]
|
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Debt Instrument [Line Items] | ||
Long-term debt | 1,134 | 1,146 |
Maturity date | Apr. 01, 2015 | |
Revolving Line Of Credit [Member]
|
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Debt Instrument [Line Items] | ||
Long-term debt | 73 | 195 |
Maturity date | Jun. 01, 2016 | |
First Priority Senior Secured Floating Rate Notes [Member]
|
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Debt Instrument [Line Items] | ||
Long-term debt | 681 | 681 |
Maturity date | Feb. 01, 2015 | |
8 1/4% First Priority Senior Secured Notes [Member]
|
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Debt Instrument [Line Items] | ||
Long-term debt | 370 | 370 |
Debt instrument, interest rate, stated percentage | 8.25% | |
Maturity date | Nov. 01, 2015 | |
Second Priority Senior Secured Floating Rate Notes [Member]
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Debt Instrument [Line Items] | ||
Long-term debt | 210 | 210 |
Maturity date | Sep. 01, 2014 | |
9 1/2% Second Priority Senior Secured Notes [Member]
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Debt Instrument [Line Items] | ||
Long-term debt | 500 | 500 |
Debt instrument, interest rate, stated percentage | 9.50% | |
Maturity date | May 01, 2018 | |
Senior Unsecured Term Loan [Member]
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||
Debt Instrument [Line Items] | ||
Long-term debt | 39 | 56 |
Maturity date | Jun. 01, 2014 | |
9 3/4% Second Priority Senior Secured Notes [Member]
|
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Debt Instrument [Line Items] | ||
Long-term debt | 800 | 800 |
Debt instrument, interest rate, stated percentage | 9.75% | |
Maturity date | Jan. 01, 2021 | |
10 1/4% Senior Subordinated Notes [Member]
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Debt Instrument [Line Items] | ||
Long-term debt | 127 | 127 |
Debt instrument, interest rate, stated percentage | 10.25% | 10.25% |
Maturity date | Mar. 01, 2016 | |
11% Senior Subordinated Notes [Member]
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Debt Instrument [Line Items] | ||
Long-term debt | $ 455 | $ 455 |
Debt instrument, interest rate, stated percentage | 11.00% | |
Maturity date | Sep. 01, 2016 |
Guarantor And Non-Guarantor Financial Information
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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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
Condensed Supplemental Consolidated Balance Sheet
Condensed Supplemental Consolidated Balance Sheet
Condensed Supplemental Consolidated Statements of Cash Flows
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Acquisitions (Tables)
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12 Months Ended | ||||||||||||||||||||||||
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Sep. 29, 2012
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Acquisitions [Abstract] | |||||||||||||||||||||||||
Schedule Of Preliminary Allocation Of Purchase Price |
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Subsequent Events (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
1 Months Ended | 12 Months Ended | 1 Months Ended | |||
---|---|---|---|---|---|---|
Oct. 31, 2012
|
Sep. 29, 2012
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Dec. 30, 2006
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Sep. 29, 2012
11% Senior Subordinated Notes [Member]
|
Oct. 31, 2012
Minimum [Member]
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Oct. 31, 2012
Maximum [Member]
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Stock sold in initial public offering | 29,411,764 | |||||
Stock sold, price per share | $ 16.00 | |||||
Proceeds from sale of stock | $ 444 | |||||
Amount of debt extinguished | 455 | |||||
Debt instrument, interest rate, stated percentage | 11.00% | |||||
Maturity date | Sep. 01, 2016 | |||||
Percentage of income tax used in income tax receivable agreement | 85.00% | |||||
Expected payment related to income tax receivable agreement | $ 300 | $ 350 | ||||
Shares authorized for grant | 9,297,750 | 7,071,337 | ||||
Number of shares pursuant to incentive stock options | 929,775 |
Acquisitions (Schedule Of Preliminary Allocation Of Purchase Price) (Details) (Rexam SBC [Member], USD $)
In Millions, unless otherwise specified |
Sep. 30, 2011
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Rexam SBC [Member]
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Business Acquisition [Line Items] | |
Working capital | $ 80 |
Property and equipment | 199 |
Intangible assets | 43 |
Goodwill | 60 |
Other long-term liabilities | (31) |
Net assets acquired | $ 351 |
Basis Of Presentation And Summary Of Significant Accounting Policies (Schedule Of Assumptions Used For Options Granted) (Details)
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12 Months Ended | ||
---|---|---|---|
Sep. 29, 2012
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Oct. 01, 2011
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Oct. 02, 2010
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Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | |||
Risk-free interest rate, minimum | 0.60% | ||
Risk-free interest rate, maximum | 0.90% | ||
Risk-free interest rate | 1.30% | 2.60% | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility factor | 0.38% | 0.33% | |
Volatility factor, minimum | 0.32% | ||
Volatility factor, maximum | 0.34% | ||
Expected option life | 5 years | 5 years | 5 years |
Consolidated Statements Of Changes In Stockholders' Equity (USD $)
In Millions |
Common Stock [Member]
|
Paid-in Capital [Member]
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Notes Receivable - Common Stock [Member]
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Non-Controlling Interest [Member]
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Accumulated Other Comprehensive Loss [Member]
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Accumulated Deficit [Member]
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Total
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---|---|---|---|---|---|---|---|
Balance at Sep. 26, 2009 | $ 1 | $ 160 | $ (2) | $ (28) | $ (151) | $ (20) | |
Stock compensation expense | 1 | 1 | |||||
Interest rate hedge amortization | 4 | 4 | |||||
Fair value adjustment of redeemable stock | (14) | (14) | |||||
Net income (loss) | (113) | (113) | |||||
Currency translation | 6 | 6 | |||||
Defined benefit pension and retiree health benefit plans, net of tax | (5) | (5) | |||||
Balance at Oct. 02, 2010 | 1 | 147 | (2) | (23) | (264) | (141) | |
Stock compensation expense | 2 | 2 | |||||
Non controlling interest | 3 | 3 | |||||
Fair value adjustment of redeemable stock | (7) | (7) | |||||
Net income (loss) | (299) | (299) | |||||
Currency translation | (10) | (10) | |||||
Interest rate hedges, net of tax | (6) | (6) | |||||
Defined benefit pension and retiree health benefit plans, net of tax | (9) | (9) | |||||
Balance at Oct. 01, 2011 | 1 | 142 | (2) | 3 | (48) | (563) | (467) |
Stock compensation expense | 2 | 2 | |||||
Interest rate hedge amortization | 3 | 3 | |||||
Fair value adjustment of redeemable stock | (13) | (13) | |||||
Net income (loss) | 2 | 2 | |||||
Currency translation | 6 | 6 | |||||
Defined benefit pension and retiree health benefit plans, net of tax | (8) | (8) | |||||
Balance at Sep. 29, 2012 | $ 1 | $ 131 | $ (2) | $ 3 | $ (47) | $ (561) | $ (475) |
Net Income (Loss) Per Share (Narrative) (Details)
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12 Months Ended | |
---|---|---|
Oct. 01, 2011
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Oct. 02, 2010
|
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Net Income (Loss) Per Share [Abstract] | ||
Antidilutive shares excluded from caluculation | 10,826,232 | 10,614,882 |
Financial Instruments And Fair Value Measurements
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Sep. 29, 2012
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Financial Instruments And Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments And Fair Value Measurements | 4. Financial Instruments and Fair Value Measurements
As part of the overall risk management, the Company uses derivative instruments to reduce exposure to changes in interest rates attributed to the Company’s floating-rate borrowings. For those derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. To the extent hedging relationships are found to be effective, as determined by FASB guidance, changes in fair value of the derivatives are offset by changes in the fair value of the related hedged item are recorded to Accumulated other comprehensive loss. Management believes hedge effectiveness is evaluated properly in preparation of the financial statements.
Cash Flow Hedging Strategy
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of Accumulated other comprehensive loss and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings.
In November 2010, the Company entered into two separate interest rate swap transactions to manage cash flow variability associated with $1 billion of the outstanding variable rate term loan debt (the “2010 Swaps”). The first agreement had a notional amount of $500 and became effective in November 2010. The agreement swaps three month variable LIBOR contracts for a fixed three year rate of 0.8925% and expires in November 2013. The second agreement had a notional amount of $500 and became effective in December 2010. The agreement swaps three month variable LIBOR contracts for a fixed three year rate of 1.0235% and expires in November 2013. In August 2011, the Company began utilizing 1-month LIBOR contracts for the underlying senior secured credit facility. The Company’s change in interest rate selection caused the Company to lose hedge accounting on both of the interest rate swaps. The Company recorded changes in fair value in the Consolidated Statement of Operations and will amortize the previously recorded unrealized losses of $3, net of tax as of fiscal year-end 2012 to Interest expense through the end of the respective swap agreements.
The effect of the derivative instruments on the Consolidated Statement of Operations are as follows:
The Fair Value Measurements and Disclosures section of the ASC defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, and establishes a framework for measuring fair value. This section also establishes a three-level hierarchy (Level 1, 2, or 3) for fair value measurements based upon the observability of inputs to the valuation of an asset or liability as of the measurement date. This section also requires the consideration of the counterparty’s or the Company’s nonperformance risk when assessing fair value.
The Company’s interest rate swap fair values were determined using Level 2 inputs as other significant observable inputs were not available.
The Company’s financial instruments consist primarily of cash and cash equivalents, investments, long-term debt, interest rate swap agreements and capital lease obligations. The fair value of our investments exceeded book value as of fiscal 2012 and 2011, by $80 and $159, respectively. The following table summarizes our long-term indebtedness for which the book value was in excess of the fair value:
Redeemable Common Stock
The Company has common stock outstanding to former employees that will be repurchased by the Company. Redemption of this common stock will be based on the fair value of the stock on the fixed redemption date and this redemption is out of the control of the Company. This redeemable common stock is recorded at its fair value in temporary equity and changes in the fair value are recorded in additional paid in capital each period. Under the 2006 Equity Incentive Plan, the exercise price for option awards is the fair market value of common stock on the date of grant. Historically, the fair market value of a share of common stock was determined by the Board of Directors by applying industry-appropriate multiples to EBITDA. This valuation took into account a level of net debt that excluded cash required for working capital purposes. The categorization of the framework used to price these liabilities is considered a Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. Subsequent to the initial public offering, the redemption requirement terminated and the Company no longer will be required to repurchase these shares. The fair value as of the end of fiscal 2012 and 2011 was $23 and $16, respectively.
Non-recurring Fair Value Measurements
The Company has certain assets that are measured at fair value on a non-recurring basis under the circumstances and events described in Note 1 and Note 10. The assets are adjusted to fair value only when the carrying values exceed the fair values. The categorization of the framework used to price the assets is considered a Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value (see Note 1 and 10 for additional discussion).
Included in the following table are the major categories of assets measured at fair value on a non-recurring basis along with the impairment loss recognized on the fair value measurement for the year then ended.
Valuation of Goodwill and Indefinite Lived Intangible Assets
ASC Topic 350 requires the Company to test goodwill for impairment at least annually using a two-step process. The first step is a screen for potential impairment, while the second step measures the amount of impairment. The Company conducts the two-step impairment test on the first day of the fourth fiscal quarter, unless indications of impairment exist during an interim period. When assessing its goodwill for impairment, the Company utilizes a discounted cash flow analysis in combination with a comparable company market approach to determine the fair value of their reporting units and corroborate the fair values. The Company utilizes a relief from royalty method to value their indefinite lived trademarks and uses the forecasts that are consistent with those used in the reporting unit analysis. The Company has five reporting units more fully discussed in Note 1. In fiscal 2012 and fiscal 2010 the Company performed their annual impairment test and determined no impairment existed. In fiscal 2011 the Company recorded a goodwill impairment charge of $165 in Restructuring and impairment charges on the Consolidated Statement of Operations. The Company did not recognize any impairment charges on the definitive lived intangible assets in any of the years presented.
Valuation of Property, Plant and Equipment and Definite Lived Intangible Assets
The Company periodically realigns their manufacturing operations which results in facilities being closed and shut down and equipment transferred to other facilities or equipment being scrapped or sold. The Company utilizes appraised values to corroborate the fair value of the facilities and has utilized a scrap value based on prior facility shut downs to estimate the fair value of the equipment, which has approximated the actual value that was received. When impairment indicators exist, the Company will also perform an undiscounted cash flow analysis to determine the recoverability of the Company’s long-lived assets. The Company wrote-down their property, plant, and equipment with a carrying value of $1,219 to its fair value of $1,216, which resulted in an impairment charge of $3 during fiscal 2012. The Company wrote-down their property, plant, and equipment with a carrying value of $1,285 to its fair value of $1,250, which resulted in an impairment charge of $35 during fiscal 2011. The Company wrote-down their property, plant, and equipment with a carrying value of $1,165 to its fair value of $1,146, which resulted in an impairment charge of $19 during fiscal 2010. The Company recognized an impairment charge of $20 on the property, plant, and equipment and long-lived assets during fiscal 2012.
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Goodwill, Intangible Assets And Deferred Costs (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 29, 2012
|
---|---|
Goodwill, Intangible Assets And Deferred Costs [Abstract] | |
Future amortization expense, 2013 | $ 103 |
Future amortization expense, 2014 | 95 |
Future amortization expense, 2015 | 86 |
Future amortization expense, 2016 | 79 |
Future amortization expense, 2017 | $ 68 |
Stockholders' Equity (Schedule Of Stock Option Activity) (Details) (USD $)
|
12 Months Ended | |
---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
|
Stockholders' Equity [Abstract] | ||
Options outstanding, beginning of period | 10,826,232 | 10,614,883 |
Options granted | 695,898 | 1,552,418 |
Options exercised or cash settled | (175,412) | |
Options forfeited or cancelled | (605,628) | (1,341,069) |
Options outstanding, end of period | 10,741,090 | 10,826,232 |
Options outstanding, beginning of period, weighted average exercise price | $ 7.70 | $ 7.78 |
Options granted, weighted average exercise price | $ 10.57 | $ 6.13 |
Options exercised or cash settled, weighted average exercise price | $ 7.33 | |
Options forfeited or cancelled, weighted average exercise price | $ 7.43 | $ 7.94 |
Options outstanding, end of period, weighted average exercise price | $ 7.76 | $ 7.70 |
Range of exercise price, lower limit | $ 3.04 | $ 3.04 |
Range of exercise price, upper limit | $ 15.04 | $ 9.21 |
Options exercisable at end of period | 7,327,612 | 7,318,346 |
Options available for grant at period end | 1,597,240 | 1,512,606 |
Weighted average fair value of options granted during period | $ 2.71 | $ 1.88 |
Retirement Plan (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Sep. 29, 2012
item
|
Oct. 01, 2011
|
Oct. 02, 2010
|
|
Retirement Plan [Line Items] | |||
Number of defined contribution plans | 2 | ||
Defined contribution plan expense | $ 7 | $ 6 | $ 6 |
Number of multiemployer plans | 1 | ||
Net unrealized defined benefit losses in accumulated other comprehensive loss | 53 | ||
Amount expected to be amortized from accumulated other comprehensive loss in 2013 | 2 | ||
Assumed health care cost trend rate | 7.00% | ||
Plan assets | 129 | 109 | |
Defined Benefit Pension Plans [Member]
|
|||
Retirement Plan [Line Items] | |||
Number of defined benefit plans | 6 | ||
PBO | 207 | 179 | 175 |
Plan assets | 129 | 109 | 112 |
Foreign Pension Plans, Defined Benefit [Member]
|
|||
Retirement Plan [Line Items] | |||
PBO | 3 | ||
Retiree Health Plan [Member]
|
|||
Retirement Plan [Line Items] | |||
Number of frozen defined benefit plans | 1 | ||
PBO | 3 | 4 | 4 |
Plan assets | |||
Growth Investments [Member]
|
|||
Retirement Plan [Line Items] | |||
Target allocation for plan assets, minimum | 40.00% | ||
Target allocation for plan assets, maximum | 50.00% | ||
Fixed Income Investments [Member]
|
|||
Retirement Plan [Line Items] | |||
Target allocation for plan assets, minimum | 40.00% | ||
Target allocation for plan assets, maximum | 50.00% | ||
Other Asset Categories [Member]
|
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Retirement Plan [Line Items] | |||
Target allocation for plan assets, minimum | 5.00% | ||
Target allocation for plan assets, maximum | 10.00% | ||
Plan assets | 6 | ||
10 1/4% Senior Subordinated Notes [Member]
|
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Retirement Plan [Line Items] | |||
Plan assets | $ 11 | $ 11 | |
Debt instrument, interest rate | 10.25% | 10.25% |
Long-Term Debt (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Long-Term Debt |
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Future Maturities Of Long-Term Debt |
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Retirement Plan (Schedule Of Net Pension And Retiree Health Benefit Expense) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Sep. 29, 2012
|
Oct. 01, 2011
|
|
Retirement Plan [Abstract] | ||
Service cost | ||
Interest cost | 8 | 9 |
Amortization | 2 | 1 |
Expected return on plan assets | (8) | (9) |
Net periodic benefit cost | $ 2 | $ 1 |
Guarantor And Non-Guarantor Financial Information (Tables)
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Sep. 29, 2012
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Guarantor And Non-Guarantor Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Supplemental Consolidated Statements Of Operations | Condensed Supplemental Consolidated Statements of Operations
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Condensed Supplemental Consolidated Balance Sheet |
Condensed Supplemental Consolidated Balance Sheet
Condensed Supplemental Consolidated Balance Sheet
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Condensed Supplemental Consolidated Statements Of Cash Flows | Condensed Supplemental Consolidated Statements of Cash Flows
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Net Income (Loss) Per Share
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Sep. 29, 2012
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Net Income (Loss) Per Share | 14. Net Income (Loss) Per Share
Basic net income or loss per share is calculated by dividing the net income or loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income or loss per share is computed by dividing the net income or loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method and the if-converted method. For purposes of this calculation, stock options are considered to be common stock equivalents and are only included in the calculation of diluted net income or loss per share when their effect is dilutive. The Company’s redeemable common stock is included in the weighted-average number of common shares outstanding for calculating basic and diluted net income or loss per share.
The following tables and discussion provide a reconciliation of the numerator and denominator of the basic and diluted net loss per share computations. The calculation below provides net income or loss on both basic and diluted basis for fiscal 2012, 2011, and 2010 (in thousands).
The conversion of stock options is not included in the calculation of diluted net loss per common share as of the end of fiscal 2011 and 2010 as the effect of these conversions would be antidilutive to the net loss available to common shareholders. Thus, the weighted-average common equivalent shares used for purposed of computing diluted EPS are the same as those used to compute basic EPS for these periods. Shares excluded from the calculation as the effect of their conversion into shares of our common stock would be antidilutive were 10,826,232 and 10,614,882 as of the end of fiscal 2011 and 2010, respectively.
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