PAPERWEIGHT DEVELOPMENT CORP Just Filed Its Quarterly Report: 12.      EMPLOYEE...

12.      EMPLOYEE STOCK OWNERSHIP PLAN



The Company’s matching contributions charged to expense was $0.2 million for the three-month period ended July 2, 2017 and $0.4 million for the three-month period ended July 3, 2016. The company’s matching contributions charged to expense were $0.7 million and $0.9 million for the six-month periods ended July 2, 2017 and July 3, 2016, respectively. As a result of hardship withdrawals, required diversifications and employee terminations, 636,971 shares of PDC redeemable common stock were repurchased during the first six months of 2017 at an aggregate price of approximately $5.5 million. During the same period, the ESOP trustee purchased 103,420 shares of PDC redeemable common stock for an aggregate price of $0.7 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for the same period resulted in an additional 96,245 shares of redeemable common stock being issued. As a result of hardship withdrawals, required diversifications and employee terminations, 477,081 shares of PDC redeemable common stock were repurchased during the first six months of 2016 at an aggregate price of approximately $6.1 million. During the same period, the ESOP trustee purchased 69,090 shares of PDC redeemable common stock for an aggregate price of $0.9 million using pre-tax deferrals, rollovers, and loan payments made by employees, while the Company’s matching contributions for the same period resulted in an additional 66,502 shares of redeemable common stock being issued.



In accordance with ASC 480, “Distinguishing Liabilities from Equity,” the appropriate accounting for redeemable equity first depends upon a determination of whether the equity is currently redeemable or not currently redeemable. Shares that are currently redeemable should be recorded at redemption value. For shares that are not currently redeemable, the accounting guidance allows for changes in redemption value to be accreted from the initial issuance date to the earliest redemption date. This guidance also specifies that if the redemption value is less than the original issuance cost, the carrying amount of the redeemable common stock should not be less than the original issuance cost.



As of July 2, 2017, the fair market value of one share of PDC common stock was $6.85.  Based on the estimated fair value of the redeemable common stock at July 2, 2017, an ultimate redemption liability of approximately $39.9 million was determined. The redeemable common stock recorded book value as of July 2, 2017 was $91.8 million. The change in fair value and accretion of redeemable common stock was $0.6 million for the six months ended July 2, 2017.



Based on the estimated fair value of the redeemable common stock at July 3, 2016, an ultimate redemption liability of approximately $87.9 million was determined. The redeemable common stock recorded book value as of July 3, 2016 was $112.8 million. The change in fair value and accretion of redeemable common stock was $5.1 million for the six months ended July 3, 2016.



On August 9, 2017, the Board of Directors of Appvion approved Amendment Number Six to the Appvion, Inc. Retirement Savings and Employee Stock Ownership Plan. On August 9, 2017, the Board of Directors of Appvion also appointed Mr. G. Grant Lyon as the sole member of the ESOP Administrative Committee of Appvion.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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