BERRY PLASTICS GROUP, INC.
(Exact name of Registrant as specified in its charter)
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Delaware
(State of Incorporation)
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001-35672
(Commission File Number)
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20-5234618
(I.R.S. Employer Identification No.)
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101 Oakley Street
Evansville, Indiana
(Address of principal executive offices)
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47710
(Zip Code)
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(812) 424-2904
(Registrant’s telephone number, including area code)
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N/A
(Former Name or Former Address, if Changed Since Last Report)
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d)
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Exhibits
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Date: August 1, 2013 By: /s/ James M. Kratochvil
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Achieved a record for any third fiscal quarter with a June 2013 quarter Operating EBITDA of $208 million and LTM Adjusted EBITDA of $811 million
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Reported the 12th consecutive quarter of increased year-over-year Operating EBITDA
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Reduced net debt by $623 million and reduced our leverage ratio (net debt/Adjusted EBITDA) to 4.8x, a reduction of 1.0x from the June 2012 quarter
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Recorded Adjusted net income per share of $0.35 for the June 2013 quarter compared to $0.22 in the June 2012 quarter
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Achieved LTM Adjusted free cash flow of $282 million
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Increased Operating EBITDA by almost 5 percent versus the June 2012 quarter and increased Operating EBITDA margin to 17.0 percent from 16.0 percent in the June 2012 quarter
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Quarterly Period Ended (Unaudited)
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Net sales (in millions)
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June 29, 2013
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June 30, 2012
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$ Change
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% Change
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Rigid Open Top
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$ | 312 | $ | 329 | $ | (17 | ) | (5 | %) | |||||||
Rigid Closed Top
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370 | 374 | (4 | ) | (1 | %) | ||||||||||
Rigid Packaging
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682 | 703 | (21 | ) | (3 | %) | ||||||||||
Engineered Materials
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351 | 345 | 6 | 2 | % | |||||||||||
Flexible Packaging
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188 | 194 | (6 | ) | (3 | %) | ||||||||||
Total net sales
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$ | 1,221 | $ | 1,242 | $ | (21 | ) | (2 | %) |
Three Quarterly Periods Ended (Unaudited)
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Net sales (in millions)
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June 29, 2013
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June 30, 2012
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$ Change
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% Change
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Rigid Open Top
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$ | 828 | $ | 912 | $ | (84 | ) | (9 | %) | |||||||
Rigid Closed Top
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1,036 | 1,085 | (49 | ) | (5 | %) | ||||||||||
Rigid Packaging
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1,864 | 1,997 | (133 | ) | (7 | %) | ||||||||||
Engineered Materials
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1,030 | 1,010 | 20 | 2 | % | |||||||||||
Flexible Packaging
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549 | 555 | (6 | ) | (1 | %) | ||||||||||
Total net sales
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$ | 3,443 | $ | 3,562 | $ | (119 | ) | (3 | %) |
June 29,
2013
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September 29, 2012
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(in millions) (Unaudited)
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Term Loan
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$ | 1,125 | $ | 1,134 | ||||
Incremental Term Loan
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1,397 | — | ||||||
Revolving line of credit
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— | 73 | ||||||
91/2% Second Priority Notes
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500 | 500 | ||||||
Senior Unsecured Term Loan
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18 | 39 | ||||||
9¾% Second Priority Notes
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800 | 800 | ||||||
Retired debt
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— | 1,845 | ||||||
Debt discount, net
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(8 | ) | (11 | ) | ||||
Capital leases and other
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110 | 91 | ||||||
Cash and cash equivalents
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(25 | ) | (87 | ) | ||||
Net debt
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$ | 3,917 | $ | 4,384 |
Quarterly Period Ended
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Three Quarterly Periods Ended
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June 29,
2013
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June 30,
2012
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June 29,
2013
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June 30,
2012
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Net sales
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$ | 1,221 | $ | 1,242 | $ | 3,443 | $ | 3,562 | ||||||||
Costs and expenses:
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Cost of goods sold
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998 | 1,035 | 2,829 | 2,999 | ||||||||||||
Selling, general and administrative
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78 | 78 | 230 | 234 | ||||||||||||
Amortization of intangibles
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27 | 27 | 81 | 81 | ||||||||||||
Restructuring and impairment charges
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1 | 4 | 7 | 30 | ||||||||||||
Operating income
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117 | 98 | 296 | 218 | ||||||||||||
Debt extinguishment
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— | — | 64 | — | ||||||||||||
Other income, net
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(2 | ) | — | (6 | ) | (1 | ) | |||||||||
Interest expense, net
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57 | 82 | 188 | 247 | ||||||||||||
Income (loss) before income taxes
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62 | 16 | 50 | (28 | ) | |||||||||||
Income tax expense (benefit)
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22 | 7 | 19 | (8 | ) | |||||||||||
Net income (loss)
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$ | 40 | $ | 9 | $ | 31 | $ | (20 | ) | |||||||
Net income (loss) per share:
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Basic
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$ | 0.35 | $ | 0.11 | $ | 0.27 | $ | (0.24 | ) | |||||||
Diluted
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0.33 | 0.11 | 0.26 | (0.24 | ) | |||||||||||
Weighted-average number of shares outstanding:
(in thousands)
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Basic
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114,132 | 83,190 | 112,839 | 83,508 | ||||||||||||
Diluted
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120,551 | 85,471 | 118,708 | 83,508 | ||||||||||||
Comprehensive income (loss)
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$ | 45 | $ | 4 | $ | 34 | $ | (16 | ) |
June 29,
2013
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September 29, 2012
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(Unaudited)
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Assets:
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Cash and cash equivalents
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$ | 25 | $ | 87 | ||||
Accounts receivable, net
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468 | 455 | ||||||
Inventories
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577 | 535 | ||||||
Other current assets
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149 | 156 | ||||||
Property, plant and equipment, net
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1,263 | 1,216 | ||||||
Goodwill, intangibles assets and other long-term assets
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2,563 | 2,657 | ||||||
Total assets
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$ | 5,045 | $ | 5,106 | ||||
Liabilities and stockholders' deficit
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Current liabilities, excluding debt
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613 | 606 | ||||||
Current and long-term debt
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3,942 | 4,471 | ||||||
Other long-term liabilities
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741 | 481 | ||||||
Redeemable shares
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— | 23 | ||||||
Stockholders’ deficit
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(251 | ) | (475 | ) | ||||
Total liabilities and stockholders' deficit
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$ | 5,045 | $ | 5,106 |
Three Quarterly Periods Ended
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June 29, 2013
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June 30, 2012
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Net cash from operating activities
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$ | 297 | $ | 278 | ||||
Cash flows from investing activities:
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Additions to property, plant and equipment
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(179 | ) | (167 | ) | ||||
Proceeds from sale of assets
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5 | 9 | ||||||
Acquisitions of business, net of cash acquired
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(24 | ) | (55 | ) | ||||
Net cash from investing activities
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(198 | ) | (213 | ) | ||||
Cash flows from financing activities:
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Proceeds from long-term borrowings
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1,391 | — | ||||||
Repayment of long-term borrowings
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(1,968 | ) | (62 | ) | ||||
Repayment of notes receivable
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2 | — | ||||||
Purchases of common stock
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— | (6 | ) | |||||
Payment of tax receivable agreement
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(5 | ) | — | |||||
Debt financing costs
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(39 | ) | — | |||||
Proceeds from issuance of common stock
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21 | — | ||||||
Proceeds from initial public stock offering
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438 | — | ||||||
Net cash from financing activities
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(160 | ) | (68 | ) | ||||
Effect of exchange rate changes on cash
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(1 | ) | (1 | ) | ||||
Net change in cash and cash equivalents
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(62 | ) | (4 | ) | ||||
Cash and cash equivalents at beginning of period
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87 | 42 | ||||||
Cash and cash equivalents at end of period
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$ | 25 | $ | 38 |
Quarterly Period Ended
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Three Quarterly Periods Ended
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June 29, 2013
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June 30, 2012
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June 29, 2013
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June 30, 2012
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Net sales:
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Rigid Open Top
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$ | 312 | $ | 329 | $ | 828 | $ | 912 | ||||||||
Rigid Closed Top
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370 | 374 | 1,036 | 1,085 | ||||||||||||
Rigid Packaging
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$ | 682 | $ | 703 | $ | 1,864 | $ | 1,997 | ||||||||
Engineered Materials
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351 | 345 | 1,030 | 1,010 | ||||||||||||
Flexible Packaging
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188 | 194 | 549 | 555 | ||||||||||||
Total
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$ | 1,221 | $ | 1,242 | $ | 3,443 | $ | 3,562 | ||||||||
Operating income (loss):
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Rigid Open Top
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$ | 35 | $ | 42 | $ | 95 | $ | 114 | ||||||||
Rigid Closed Top
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43 | 28 | 97 | 57 | ||||||||||||
Rigid Packaging
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$ | 78 | $ | 70 | $ | 192 | $ | 171 | ||||||||
Engineered Materials
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31 | 25 | 88 | 48 | ||||||||||||
Flexible Packaging
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8 | 3 | 16 | (1 | ) | |||||||||||
Total
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$ | 117 | $ | 98 | $ | 296 | $ | 218 | ||||||||
Depreciation and amortization:
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Rigid Open Top
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$ | 23 | $ | 22 | $ | 68 | $ | 67 | ||||||||
Rigid Closed Top
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33 | 34 | 98 | 102 | ||||||||||||
Rigid Packaging
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$ | 56 | $ | 56 | $ | 166 | $ | 169 | ||||||||
Engineered Materials
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18 | 17 | 53 | 51 | ||||||||||||
Flexible Packaging
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12 | 14 | 39 | 43 | ||||||||||||
Total
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$ | 86 | $ | 87 | $ | 258 | $ | 263 | ||||||||
Restructuring and impairment charges:
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Rigid Open Top
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$ | — | $ | — | $ | 1 | $ | — | ||||||||
Rigid Closed Top
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— | 2 | 3 | 9 | ||||||||||||
Rigid Packaging
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$ | — | $ | 2 | $ | 4 | $ | 9 | ||||||||
Engineered Materials
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1 | 2 | 2 | 21 | ||||||||||||
Flexible Packaging
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— | — | 1 | — | ||||||||||||
Total
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$ | 1 | $ | 4 | $ | 7 | $ | 30 | ||||||||
Other operating expenses:
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Rigid Open Top
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$ | 2 | $ | 1 | $ | 6 | $ | 4 | ||||||||
Rigid Closed Top
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1 | 7 | 7 | 29 | ||||||||||||
Rigid Packaging
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$ | 3 | $ | 8 | $ | 13 | $ | 33 | ||||||||
Engineered Materials
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1 | 1 | 4 | 3 | ||||||||||||
Flexible Packaging
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— | 1 | 3 | 12 | ||||||||||||
Total
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$ | 4 | $ | 10 | $ | 20 | $ | 48 | ||||||||
Operating EBITDA:
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Rigid Open Top
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$ | 60 | $ | 65 | $ | 170 | $ | 185 | ||||||||
Rigid Closed Top
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77 | 71 | 205 | 197 | ||||||||||||
Rigid Packaging
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$ | 137 | $ | 136 | $ | 375 | $ | 382 | ||||||||
Engineered Materials
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51 | 45 | 147 | 123 | ||||||||||||
Flexible Packaging
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20 | 18 | 59 | 54 | ||||||||||||
Total
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$ | 208 | $ | 199 | $ | 581 | $ | 559 |
Quarterly Period Ended
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Four Quarters Ended
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June 29,
2013
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June 30,
2012
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June 29,
2013
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Net income
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$ | 40 | $ | 9 | $ | 54 | ||||||
Add: interest expense
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57 | 82 | 269 | |||||||||
Add: income tax expense
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22 | 7 | 28 | |||||||||
EBIT
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$ | 119 | 98 | $ | 351 | |||||||
Add: depreciation and amortization
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86 | 86 | 351 | |||||||||
Add: restructuring and impairment
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1 | 4 | 8 | |||||||||
Add: extinguishment of debt
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— | — | 64 | |||||||||
Add: other expense
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2 | 11 | 19 | |||||||||
Operating EBITDA (1)
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$ | 208 | $ | 199 | $ | 793 | ||||||
Add: pro forma acquisitions
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— | 4 | ||||||||||
Add: unrealized cost savings
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1 | 14 | ||||||||||
Adjusted EBITDA (1)
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$ | 209 | $ | 811 | ||||||||
Cash flow from operating activities
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$ | 132 | $ | 123 | $ | 498 | ||||||
Additions to property, plant, and equipment, net
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(69 | ) | (61 | ) | (216 | ) | ||||||
Adjusted free cash flow
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$ | 63 | $ | 62 | $ | 282 | ||||||
Net income per share-diluted
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$ 0.33
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0.11
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Restructuring and impairment charges (net of tax)
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0.01
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0.03
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Other expense (net of tax)
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0.01
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0.08
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Adjusted net income per share
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$ 0.35
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0.22
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