Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2014



Condensed Consolidating Statements of Income
Three Months Ended March 31,
(in millions)
	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2014
Net sales
External	$	—	$	227.9		$	58.0		$	572.9		$	—		$	858.8
Intercompany	—		2.8			58.1			5.9			(66.8		)	—
Total net sales	—		230.7			116.1			578.8			(66.8		)	858.8
Cost of goods sold	—		231.9			99.6			472.2			(66.8		)	736.9
Gross profit (loss)	—		(1.2		)	16.5			106.6			—			121.9
Selling, general and administrative expenses	—		48.6			0.1			8.4			—			57.1
Operating income (loss)	—		(49.8		)	16.4			98.2			—			64.8
Non-operating income (expense), net	—		(25.8		)	2.7			(1.1		)	—			(24.2		)
Income (loss) before income taxes	—		(75.6		)	19.1			97.1			—			40.6
Income tax expense	—		0.4			—			6.6			—			7.0
Earnings (loss) from equity in subsidiaries	33.6		54.5			(9.2		)	—			(78.9		)	—
Net income (loss) before royalties and dividends	33.6		(21.5		)	9.9			90.5			(78.9		)	33.6
Royalties and dividends	—		55.1			—			(55.1		)	—			—
Net income after royalties and dividends	33.6		33.6			9.9			35.4			(78.9		)	33.6
Other comprehensive income	13.8		13.8			7.8			8.9			(30.5		)	13.8
Total comprehensive income	$	47.4	$	47.4		$	17.7		$	44.3		$	(109.4	)	$	47.4




	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
Other comprehensive income	4.3		4.3			7.7			8.3			(20.3		)	4.3
Total comprehensive income	$	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, 2014
Assets
Current assets
Cash and cash equivalents	$	—	$	9.5		$	—		$	70.1	$	—		$	79.6
Accounts receivable, net	—		171.0			32.3			450.8		—			654.1
Inventories, net	—		67.1			33.6			157.3		—			258.0
Other current assets	—		42.5			3.1			70.8		—			116.4
Total current assets	—		290.1			69.0			749.0		—			1,108.1
Property, plant and equipment, net	—		230.9			82.5			754.2		—			1,067.6
Goodwill	—		—			147.8			8.6		—			156.4
Other assets and deferred charges	—		665.8			45.0			106.8		—			817.6
Investment in subsidiaries	406.8		1,296.4			—			—		(1,703.2		)	—
Total assets	$	406.8	$	2,483.2		$	344.3		$	1,618.6	$	(1,703.2	)	$	3,149.7
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	—	$	133.6		$	45.5		$	299.7	$	—		$	478.8
Other current liabilities	—		108.0			4.7			106.3		—			219.0
Total current liabilities	—		241.6			50.2			406.0		—			697.8
Intercompany payable (receivable)	323.5		(339.7		)	(227.0		)	243.2		—			—
Long-term debt	—		1,498.1			5.2			75.1		—			1,578.4
Investment in subsidiaries obligation	—		—			9.3			—		(9.3		)	—
Other long-term liabilities	—		676.4			0.6			113.2		—			790.2
Total liabilities	323.5		2,076.4			(161.7		)	837.5		(9.3		)	3,066.4
Total stockholders' equity	83.3		406.8			506.0			781.1		(1,693.9		)	83.3
Total liabilities and stockholders’ equity	$	406.8	$	2,483.2		$	344.3		$	1,618.6	$	(1,703.2	)	$	3,149.7




	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Elims			Consolidated
December 31, 2013
Assets
Current assets
Cash and cash equivalents	$	—	$	36.9		$	—		$	117.1	$	—		$	154.0
Accounts receivable, net	—		102.7			25.6			330.2		—			458.5
Inventories, net	—		62.4			34.2			165.2		—			261.8
Other current assets	—		43.8			3.2			76.5		—			123.5
Total current assets	—		245.8			63.0			689.0		—			997.8
Property, plant and equipment, net	—		239.8			83.0			735.7		—			1,058.5
Goodwill	—		—			147.8			8.6		—			156.4
Other assets and deferred charges	—		671.7			44.8			99.8		—			816.3
Investment in subsidiaries	360.5		1,233.2			—			—		(1,593.7		)	—
Total assets	$	360.5	$	2,390.5		$	338.6		$	1,533.1	$	(1,593.7	)	$	3,029.0
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	—	$	106.2		$	44.5		$	295.1	$	—		$	445.8
Other current liabilities	—		120.4			4.1			96.8		—			221.3
Total current liabilities	—		226.6			48.6			391.9		—			667.1
Intercompany payable (receivable)	326.9		(390.1		)	(219.5		)	282.7		—			—
Long-term debt	—		1,500.0			5.3			53.8		—			1,559.1
Investment in subsidiaries obligation	—		—			15.2			—		(15.2		)	—
Other long-term liabilities	—		693.5			0.5			75.2		—			769.2
Total liabilities	326.9		2,030.0			(149.9		)	803.6		(15.2		)	2,995.4
Total stockholders' equity	33.6		360.5			488.5			729.5		(1,578.5		)	33.6
Total liabilities and stockholders’ equity	$	360.5	$	2,390.5		$	338.6		$	1,533.1	$	(1,593.7	)	$	3,029.0




	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 property, plant and 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



Condensed Consolidating Statements of Cash Flows
Three months ended March 31, (in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2014
Net cash provided by (used in) operating activities	$	—		$	(73.6	)	$	15.7		$	2.4		$	—	$	(55.5	)
Investing activities
Purchases of property, plant and equipment	—			(9.3		)	(2.7		)	(35.9		)	—		(47.9		)
Proceeds from sale of property, plant and equipment	—			7.7			—			0.2			—		7.9
Net cash used in investing activities	—			(1.6		)	(2.7		)	(35.7		)	—		(40.0		)
Financing activities
Net debt activity	—			(0.1		)	(0.1		)	20.8			—		20.6
Intercompany activity	0.3			47.5			(12.9		)	(34.9		)	—		—
Debt issuance costs	—			(0.2		)	—			—			—		(0.2		)
Purchase of treasury stock	(0.3		)	—			—			—			—		(0.3		)
Employee stock option exercises	—			0.6			—			—			—		0.6
Net cash provided by (used in) financing activities	—			47.8			(13.0		)	(14.1		)	—		20.7
Effect of exchange rate changes on cash	—			—			—			0.4			—		0.4
Net decrease in cash and cash equivalents	—			(27.4		)	—			(47.0		)	—		(74.4		)
Cash and cash equivalents at beginning of period	—			36.9			—			117.1			—		154.0
Cash and cash equivalents at end of period	$	—		$	9.5		$	—		$	70.1		$	—	$	79.6