Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2013




	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2012
Net sales
External	$	—	$	198.3		$	54.5		$	498.7		$	—		$	751.5
Intercompany	—		7.6			60.7			5.8			(74.1		)	—
Total net sales	—		205.9			115.2			504.5			(74.1		)	751.5
Cost of goods sold	—		174.0			99.9			412.5			(74.1		)	612.3
Gross profit	—		31.9			15.3			92.0			—			139.2
Selling, general and administrative expenses	—		51.7			—			10.1			—			61.8
Operating income (loss)	—		(19.8		)	15.3			81.9			—			77.4
Non-operating income (expense), net	—		(24.3		)	0.8			(1.4		)	—			(24.9		)
Income (loss) before income taxes	—		(44.1		)	16.1			80.5			—			52.5
Income tax expense (benefit)	—		(0.9		)	—			3.1			—			2.2
Earnings (loss) from equity in subsidiaries	51.2		47.3			(13.5		)	—			(85.0		)	—
Net income before royalties and dividends	51.2		4.1			2.6			77.4			(85.0		)	50.3
Royalties and dividends	—		47.1			—			(47.1		)	—			—
Net income after royalties and dividends	51.2		51.2			2.6			30.3			(85.0		)	50.3
Net loss attributable to noncontrolling interests	—		—			—			0.9			—			0.9
Net income attributable to AAM	$	51.2	$	51.2		$	2.6		$	31.2		$	(85.0	)	$	51.2
Other comprehensive income (loss)	—		(14.4		)	1.7			15.0			—			2.3
Foreign currency translation adjustments attributable to noncontrolling interests	—		—			—			0.2			—			0.2
Comprehensive income attributable to AAM	$	51.2	$	36.8		$	4.3		$	46.0		$	(85.0	)	$	53.3



Condensed Consolidating Statements of Income
Three Months Ended March 31,
(in millions)
	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2013
Net sales
External	$	—	$	200.3		$	53.9		$	501.4		$	—		$	755.6
Intercompany	—		3.4			57.6			4.9			(65.9		)	—
Total net sales	—		203.7			111.5			506.3			(65.9		)	755.6
Cost of goods sold	—		198.5			97.2			421.5			(65.9		)	651.3
Gross profit	—		5.2			14.3			84.8			—			104.3
Selling, general and administrative expenses	—		48.9			—			10.7			—			59.6
Operating income (loss)	—		(43.7		)	14.3			74.1			—			44.7
Non-operating income (expense), net	—		(41.5		)	2.7			(1.0		)	—			(39.8		)
Income (loss) before income taxes	—		(85.2		)	17.0			73.1			—			4.9
Income tax benefit	—		(1.6		)	—			(0.8		)	—			(2.4		)
Earnings (loss) from equity in subsidiaries	7.3		40.4			(3.2		)	—			(44.5		)	—
Net income (loss) before royalties and dividends	7.3		(43.2		)	13.8			73.9			(44.5		)	7.3
Royalties and dividends	—		50.5			—			(50.5		)	—			—
Net income after royalties and dividends	7.3		7.3			13.8			23.4			(44.5		)	7.3
Net loss attributable to noncontrolling interests	—		—			—			—			—			—
Net income attributable to AAM	$	7.3	$	7.3		$	13.8		$	23.4		$	(44.5	)	$	7.3
Other comprehensive income	4.3		4.3			7.7			8.3			(20.3		)	4.3
Comprehensive income attributable to AAM	$	11.6	$	11.6		$	21.5		$	31.7		$	(64.8	)	$	11.6



Condensed Consolidating Balance Sheets
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Elims			Consolidated
March 31, 2013
Assets
Current assets
Cash and cash equivalents	$	—		$	29.3		$	—		$	71.5	$	—		$	100.8
Accounts receivable, net	—			124.9			31.7			378.7		—			535.3
Inventories, net	—			46.0			32.1			162.5		—			240.6
Other current assets	—			48.7			3.8			75.9		—			128.4
Total current assets	—			248.9			67.6			688.6		—			1,005.1
Property, plant and equipment, net	—			259.3			82.1			702.1		—			1,043.5
Goodwill	—			—			147.8			8.6		—			156.4
Other assets and deferred charges	—			702.8			42.3			79.5		—			824.6
Investment in subsidiaries	215.8			1,142.3			2.5			—		(1,360.6		)	—
Total assets	$	215.8		$	2,353.3		$	342.3		$	1,478.8	$	(1,360.6	)	$	3,029.6
Liabilities and stockholders’ equity (deficit)
Current liabilities
Accounts payable	$	—		$	119.5		$	43.4		$	291.7	$	—		$	454.6
Other current liabilities	—			109.4			4.2			82.9		—			196.5
Total current liabilities	—			228.9			47.6			374.6		—			651.1
Intercompany payable (receivable)	323.7			(434.2		)	(201.1		)	311.6		—			—
Long-term debt	—			1,487.6			5.6			77.0		—			1,570.2
Other long-term liabilities	—			855.2			1.3			59.7		—			916.2
Total liabilities	323.7			2,137.5			(146.6		)	822.9		—			3,137.5
Total AAM Stockholders’ equity (deficit)	(107.9		)	215.8			488.9			655.9		(1,360.6		)	(107.9		)
Noncontrolling interest in subsidiaries	—			—			—			—		—			—
Total stockholders’ equity (deficit)	(107.9		)	215.8			488.9			655.9		(1,360.6		)	(107.9		)
Total liabilities and stockholders’ equity (deficit)	$	215.8		$	2,353.3		$	342.3		$	1,478.8	$	(1,360.6	)	$	3,029.6




	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Elims			Consolidated
December 31, 2012
Assets
Current assets
Cash and cash equivalents	$	—		$	10.6		$	—		$	51.8	$	—		$	62.4
Accounts receivable, net	—			94.4			25.3			343.7		—			463.4
Inventories, net	—			48.7			31.6			144.0		—			224.3
Other current assets	—			48.8			3.5			69.7		—			122.0
Total current assets	—			202.5			60.4			609.2		—			872.1
Property, plant and equipment, net	—			250.4			84.2			675.1		—			1,009.7
Goodwill	—			—			147.8			8.6		—			156.4
Other assets and deferred charges	—			706.1			40.0			81.7		—			827.8
Investment in subsidiaries	202.9			1,094.6			—			—		(1,297.5		)	—
Total assets	$	202.9		$	2,253.6		$	332.4		$	1,374.6	$	(1,297.5	)	$	2,866.0
Liabilities and stockholders’ equity (deficit)
Current liabilities
Accounts payable	$	—		$	91.4		$	37.3		$	267.4	$	—		$	396.1
Other current liabilities	—			124.5			3.8			76.4		—			204.7
Total current liabilities	—			215.9			41.1			343.8		—			600.8
Intercompany payable (receivable)	323.7			(420.6		)	(188.7		)	285.6		—			—
Long-term debt	—			1,387.5			5.6			61.0		—			1,454.1
Investment in subsidiaries obligation	—			—			7.6			—		(7.6		)	—
Other long-term liabilities	—			867.9			1.2			62.8		—			931.9
Total liabilities	323.7			2,050.7			(133.2		)	753.2		(7.6		)	2,986.8
Total AAM Stockholders’ equity (deficit)	(120.8		)	202.9			465.6			621.4		(1,289.9		)	(120.8		)
Noncontrolling interest in subsidiaries	—			—			—			—		—			—
Total stockholders’ equity (deficit)	(120.8		)	202.9			465.6			621.4		(1,289.9		)	(120.8		)
Total liabilities and stockholders’ equity (deficit)	$	202.9		$	2,253.6		$	332.4		$	1,374.6	$	(1,297.5	)	$	2,866.0




	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2012
Net cash provided by (used in) operating activities	$	—		$	(73.8	)	$	7.5		$	(5.2	)	$	—	$	(71.5	)
Investing activities
Purchases of property, plant and equipment	—			(14.7		)	(1.4		)	(28.4		)	—		(44.5		)
Proceeds from sale of equipment	—			0.1			—			0.8			—		0.9
Net cash used in investing activities	—			(14.6		)	(1.4		)	(27.6		)	—		(43.6		)
Financing activities
Net debt activity	—			59.1			(0.1		)	7.8			—		66.8
Intercompany activity	5.9			(24.3		)	(6.0		)	24.4			—		—
Employee stock option exercises	—			0.1			—			—			—		0.1
Purchase of noncontrolling interest	—			—			—			(4.0		)	—		(4.0		)
Purchase of treasury stock	(5.9		)	—			—			—			—		(5.9		)
Net cash provided by (used in) financing activities	—			34.9			(6.1		)	28.2			—		57.0
Effect of exchange rate changes on cash	—			—			—			1.7			—		1.7
Net decrease in cash and cash equivalents	—			(53.5		)	—			(2.9		)	—		(56.4		)
Cash and cash equivalents at beginning of period	—			83.7			—			85.5			—		169.2
Cash and cash equivalents at end of period	$	—		$	30.2		$	—		$	82.6		$	—	$	112.8



Condensed Consolidating Statements of Cash Flows
Three months ended March 31, (in millions)
	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2013
Net cash provided by (used in) operating activities	$	—	$	(42.1	)	$	(2.0	)	$	17.3		$	—	$	(26.8	)
Investing activities
Purchases of property, plant and equipment	—		(13.3		)	(2.2		)	(32.4		)	—		(47.9		)
Proceeds from sale of equipment	—		0.1			—			—			—		0.1
Proceeds from sale-leaseback of equipment	—		3.9			—			—			—		3.9
Net cash used in investing activities	—		(9.3		)	(2.2		)	(32.4		)	—		(43.9		)
Financing activities
Net debt activity	—		99.0			(0.1		)	15.8			—		114.7
Intercompany activity	—		(22.7		)	4.3			18.4			—		—
Debt issuance costs	—		(6.2		)	—			—			—		(6.2		)
Net cash provided by financing activities	—		70.1			4.2			34.2			—		108.5
Effect of exchange rate changes on cash	—		—			—			0.6			—		0.6
Net increase in cash and cash equivalents	—		18.7			—			19.7			—		38.4
Cash and cash equivalents at beginning of period	—		10.6			—			51.8			—		62.4
Cash and cash equivalents at end of period	$	—	$	29.3		$	—		$	71.5		$	—	$	100.8