GRAHAM PACKAGING HOLDINGS CO

CIK:0001061507|SEC Filings

Comprehensive Income

6 Months Ended

Jun. 30, 2011

18.

Comprehensive Income

Comprehensive income for the three and six months ended June 30, 2011 and 2010, was as follows:


	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
			(In thousands)
Net income	$	33,582	$	46,510		$	48,308	$	25,725
Changes in fair value of derivatives designated and accounted for as cash flow hedges (net of tax of $0 for all periods presented)		252		—			386		—
Amortization of amounts in accumulated other comprehensive income (loss) as of the date the Company discontinued hedge accounting for its interest rate collar and swap agreements (net of tax of $0 for all periods presented)		—		2,018			—		4,107
Amortization of prior service costs and unrealized actuarial losses included in net periodic benefit costs for pension and post-retirement plans (net of tax provisions of $65 and $130 for the three and six months ended June 30, 2011, respectively, and $9 and $19 for the three and six months ended June 30, 2010, respectively)		396		516			726		859
Foreign currency translation adjustments (net of tax provisions of $2,354 and $2,358 for the three and six months ended June 30, 2011, respectively, and $77 for each of the three and six months ended June 30, 2010)		5,248		(22,850	)		20,548		(24,537	)

Comprehensive income	$	39,478	$	26,194		$	69,968	$	6,154

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Operating activities:
Net income	$ 48,308	$ 25,725
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	104,723	77,645
Amortization of debt issuance fees	2,636	3,184
Accretion of senior unsecured notes	236	238
Net loss on debt extinguishment		2,664
Net (gain) loss on disposal of property, plant and equipment	(95)	1,053
Pension expense	1,500	1,577
Asset impairment charges	2,478	2,792
Unrealized (gain) loss on termination of cash flow hedge accounting	(6,502)	359
Stock compensation expense	498	656
Equity income from unconsolidated subsidiaries	(34)	(40)
Deferred tax provision	7,166	94
Foreign currency transaction (gain) loss	(300)	507
Interest receivable on loans to owners	(199)	(151)
Changes in operating assets and liabilities:
Accounts receivable	(95,345)	(47,419)
Inventories	(22,212)	2,397
Prepaid expenses and other current assets	5,472	20,490
Other non-current assets	(12,434)	(4,769)
Accounts payable and accrued expenses	104,889	15,642
Pension contributions	(2,468)	(2,916)
Other non-current liabilities	(742)	468
Net cash provided by operating activities	137,575	100,196
Investing activities:
Cash paid for property, plant and equipment	(80,580)	(75,937)
Proceeds from sale of property, plant and equipment	2,004	255
Cash paid for sale of business	(61)
Net cash used in investing activities	(78,637)	(75,682)
Financing activities:
Proceeds from issuance of long-term debt	27,072	42,518
Payment of long-term debt	(38,899)	(240,478)
Debt issuance fees	(462)	(648)
Net proceeds from sale of additional units to GPC (as defined herein)		165,636
Fees paid on behalf of GPC	(45,537)	(994)
Proceeds from issuance of ownership interests	6,421
Net cash used in financing activities	(51,405)	(33,966)
Effect of exchange rate changes on cash and cash equivalents	1,562	(2,244)
Increase (decrease) in cash and cash equivalents	9,095	(11,696)
Cash and cash equivalents at beginning of period	152,964	147,808
Cash and cash equivalents at end of period	162,059	136,112
Supplemental disclosures:
Cash paid for interest, net of amounts capitalized	99,953	74,401
Cash paid for income taxes (net of refunds)	8,349	9,686
Non-cash investing and financing activities:
Accruals for purchases of property, plant and equipment	18,621	6,051
Accruals for debt issuance fees	1	136
Accruals related to acquisitions	676
Accruals for fees related to GPC's initial public offering		250
Accruals for fees to be paid on behalf of GPC	$ 3,722

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 162,059	$ 152,964
Accounts receivable, net	315,769	216,368
Inventories	272,330	247,166
Deferred income taxes	30,796	14,616
Prepaid expenses and other current assets	38,071	42,363
Total current assets	819,025	673,477
Property, plant and equipment, net	1,207,593	1,203,142
Intangible assets, net	186,639	195,780
Goodwill	658,255	643,064
Other non-current assets	73,549	91,364
Total assets	2,945,061	2,806,827
Current liabilities:
Current portion of long-term debt	31,599	34,007
Accounts payable	245,257	142,585
Accrued expenses and other current liabilities	203,868	196,332
Deferred revenue	40,294	32,471
Total current liabilities	521,018	405,395
Long-term debt	2,790,984	2,798,824
Deferred income taxes	13,016	11,294
Other non-current liabilities	90,595	89,333
Commitments and contingent liabilities (see Notes 15 and 16)
Partners' capital (deficit):
General partners	(24,051)	(25,442)
Limited partners	(450,569)	(454,985)
Accumulated other comprehensive income (loss)	4,068	(17,592)
Total partners' capital (deficit)	(470,552)	(498,019)
Total liabilities and partners' capital (deficit)	$ 2,945,061	$ 2,806,827