14.      EMPLOYEE STOCK OWNERSHIP PLAN

 

The Company’s matching contributions charged to expense were $0.4 million and $0.5 million for the three-month periods ended October 4, 2015 and September 28, 2014, respectively. The Company’s matching contributions charged to expense were $1.5 million and $1.8 million for the nine-month periods ended October 4, 2015 and September 28, 2014, respectively. As a result of hardship withdrawals, required diversifications and employee terminations, 438,484 shares of PDC redeemable common stock were repurchased during the first nine months of 2015 at an aggregate price of approximately $5.1 million. During the same period, the ESOP trustee purchased 96,574 shares of PDC redeemable common stock for an aggregate price of $1.1 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for this same period resulted in an additional 92,576 shares of redeemable common stock being issued. As a result of hardship withdrawals, required diversifications and employee terminations, 477,239 shares of PDC redeemable common stock were repurchased during the first nine months of 2014 at an aggregate price of approximately $7.8 million. During the same period, the ESOP trustee purchased 78,452 shares of PDC redeemable common stock for an aggregate price of $1.3 million using pre-tax deferrals, rollovers and loan payments made by employees, while the Company’s matching contributions for this same period resulted in an additional 75,421 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 October 4, 2015, the fair market value of one share of PDC common stock was $12.90.  Based upon the estimated fair value of the redeemable common stock at October 4, 2015, an ultimate redemption liability of approximately $90 million was determined. The redeemable common stock recorded book value as of October 4, 2015, was $121 million. The change in fair value and accretion of redeemable common stock was $5.9 million for the nine months ended October 4, 2015.

 

Based upon the estimated fair value of the redeemable common stock at September 28, 2014, an ultimate redemption liability of approximately $127 million was determined. The redeemable common stock recorded book value as of September 28, 2014 was $151 million. The change in fair value and accretion of redeemable common stock was $0.2 million for the nine months ended September 28, 2014.

 

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

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Other recent filings from the company include the following:

Notification of inability to timely file Form 10-Q or 10-QSB - Nov. 15, 2017
Entry into a Material Definitive - Nov. 6, 2017
Entry into a Material Definitive - Oct. 24, 2017

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