Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2016

Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract]

Supplemental Guarantor Consolidating Income Statement [Table Text Block]




	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2015
Net sales
External	$	—		$	292.4		$	51.1		$	628.1		$	—		$	971.6
Intercompany	—			2.1			66.0			4.4			(72.5		)	—
Total net sales	—			294.5			117.1			632.5			(72.5		)	971.6
Cost of goods sold	—			283.3			95.0			507.5			(72.5		)	813.3
Gross profit	—			11.2			22.1			125.0			—			158.3
Selling, general and administrative expenses	—			60.3			—			5.2			—			65.5
Operating income (loss)	—			(49.1		)	22.1			119.8			—			92.8
Non-operating income (expense), net	—			(22.4		)	2.3			2.6			—			(17.5		)
Income (loss) before income taxes	—			(71.5		)	24.4			122.4			—			75.3
Income tax expense	—			6.1			0.1			8.2			—			14.4
Earnings (loss) from equity in subsidiaries	60.9			79.9			(3.5		)	—			(137.3		)	—
Net income before royalties	60.9			2.3			20.8			114.2			(137.3		)	60.9
Royalties	—			58.6			—			(58.6		)	—			—
Net income after royalties	60.9			60.9			20.8			55.6			(137.3		)	60.9
Other comprehensive loss, net of tax	(43.3		)	(43.3		)	(33.8		)	(40.7		)	117.8			(43.3		)
Comprehensive income (loss)	$	17.6		$	17.6		$	(13.0	)	$	14.9		$	(19.5	)	$	17.6



Condensed Consolidating Statements of Income
Three Months Ended September 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2016
Net sales
External	$	—		$	274.7		$	49.9		$	682.3		$	—		$	1,006.9
Intercompany	—			3.7			62.7			4.4			(70.8		)	—
Total net sales	—			278.4			112.6			686.7			(70.8		)	1,006.9
Cost of goods sold	—			265.4			94.9			536.2			(70.8		)	825.7
Gross profit	—			13.0			17.7			150.5			—			181.2
Selling, general and administrative expenses	—			72.6			—			7.3			—			79.9
Operating income (loss)	—			(59.6		)	17.7			143.2			—			101.3
Non-operating income (expense), net	—			(24.9		)	2.9			0.2			—			(21.8		)
Income (loss) before income taxes	—			(84.5		)	20.6			143.4			—			79.5
Income tax expense	—			7.9			0.1			9.8			—			17.8
Earnings (loss) from equity in subsidiaries	61.7			87.4			(7.1		)	—			(142.0		)	—
Net income (loss) before royalties	61.7			(5.0		)	13.4			133.6			(142.0		)	61.7
Royalties	—			66.7			—			(66.7		)	—			—
Net income after royalties	61.7			61.7			13.4			66.9			(142.0		)	61.7
Other comprehensive income (loss), net of tax	(4.3		)	(4.3		)	1.0			(3.3		)	6.6			(4.3		)
Comprehensive income	$	57.4		$	57.4		$	14.4		$	63.6		$	(135.4	)	$	57.4



Condensed Consolidating Statements of Income
Nine Months Ended September 30,
(in millions)
	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2016
Net sales
External	$	—	$	866.3		$	161.4		$	1,973.8		$	—		$	3,001.5
Intercompany	—		8.1			185.7			12.2			(206.0		)	—
Total net sales	—		874.4			347.1			1,986.0			(206.0		)	3,001.5
Cost of goods sold	—		833.5			284.3			1,543.1			(206.0		)	2,454.9
Gross profit	—		40.9			62.8			442.9			—			546.6
Selling, general and administrative expenses	—		210.3			—			25.1			—			235.4
Operating income (loss)	—		(169.4		)	62.8			417.8			—			311.2
Non-operating income (expense), net	—		(72.7		)	8.4			0.7			—			(63.6		)
Income (loss) before income taxes	—		(242.1		)	71.2			418.5			—			247.6
Income tax expense	—		28.9			0.3			24.6			—			53.8
Earnings (loss) from equity in subsidiaries	193.8		266.6			(28.0		)	—			(432.4		)	—
Net income (loss) before royalties	193.8		(4.4		)	42.9			393.9			(432.4		)	193.8
Royalties	—		198.2			—			(198.2		)	—			—
Net income after royalties	193.8		193.8			42.9			195.7			(432.4		)	193.8
Other comprehensive income, net of tax	13.9		13.9			23.2			16.9			(54.0		)	13.9
Comprehensive income	$	207.7	$	207.7		$	66.1		$	212.6		$	(486.4	)	$	207.7




	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2015
Net sales
External	$	—		$	866.0		$	165.0		$	1,913.7		$	—		$	2,944.7
Intercompany	—			7.6			196.3			14.3			(218.2		)	—
Total net sales	—			873.6			361.3			1,928.0			(218.2		)	2,944.7
Cost of goods sold	—			846.9			295.3			1,545.1			(218.2		)	2,469.1
Gross profit	—			26.7			66.0			382.9			—			475.6
Selling, general and administrative expenses	—			179.9			—			24.7			—			204.6
Operating income (loss)	—			(153.2		)	66.0			358.2			—			271.0
Non-operating income (expense), net	—			(73.1		)	7.4			3.9			—			(61.8		)
Income (loss) before income taxes	—			(226.3		)	73.4			362.1			—			209.2
Income tax expense (benefit)	—			18.1			(0.2		)	18.6			—			36.5
Earnings (loss) from equity in subsidiaries	172.7			236.4			(12.9		)	—			(396.2		)	—
Net income (loss) before royalties	172.7			(8.0		)	60.7			343.5			(396.2		)	172.7
Royalties	—			180.7			—			(180.7		)	—			—
Net income after royalties	172.7			172.7			60.7			162.8			(396.2		)	172.7
Other comprehensive loss, net of tax	(68.7		)	(68.7		)	(61.0		)	(69.7		)	199.4			(68.7		)
Comprehensive income (loss)	$	104.0		$	104.0		$	(0.3	)	$	93.1		$	(196.8	)	$	104.0

Supplemental Guarantor Consolidating Balance Sheet [Table Text Block]




	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
December 31, 2015
Assets
Current assets
Cash and cash equivalents	$	—	$	52.0	$	—	$	230.5	$	—		$	282.5
Accounts receivable, net	—		127.2		19.7		392.2		—			539.1
Intercompany receivables	—		311.8		249.7		9.4		(570.9		)	—
Inventories, net	—		59.8		31.1		139.6		—			230.5
Prepaid expenses and other	—		30.4		0.5		41.2		—			72.1
Total current assets	—		581.2		301.0		812.9		(570.9		)	1,124.2
Property, plant and equipment, net	—		214.1		91.9		740.2		—			1,046.2
Goodwill	—		—		147.8		6.6		—			154.4
Intercompany notes and accounts receivable	—		393.5		252.2		—		(645.7		)	—
Other assets and deferred charges	—		683.6		41.4		152.9		—			877.9
Investment in subsidiaries	622.3		1,315.9		—		—		(1,938.2		)	—
Total assets	$	622.3	$	3,188.3	$	834.3	$	1,712.6	$	(3,154.8	)	$	3,202.7
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	—	$	—	$	3.3	$	—		$	3.3
Accounts payable	—		103.0		35.8		273.9		—			412.7
Intercompany payables	—		248.7		154.9		167.3		(570.9		)	—
Accrued expenses and other	—		134.2		4.1		144.9		—			283.2
Total current liabilities	—		485.9		194.8		589.4		(570.9		)	699.2
Intercompany notes and accounts payable	320.8		10.3		—		314.6		(645.7		)	—
Long-term debt, net	—		1,336.5		4.5		34.7		—			1,375.7
Investment in subsidiaries obligation	—		—		111.7		—		(111.7		)	—
Other long-term liabilities	—		733.3		0.5		92.5		—			826.3
Total liabilities	320.8		2,566.0		311.5		1,031.2		(1,328.3		)	2,901.2
Total stockholders’ equity	301.5		622.3		522.8		681.4		(1,826.5		)	301.5
Total liabilities and stockholders’ equity	$	622.3	$	3,188.3	$	834.3	$	1,712.6	$	(3,154.8	)	$	3,202.7



Condensed Consolidating Balance Sheets
(in millions)
	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
September 30, 2016
Assets
Current assets
Cash and cash equivalents	$	—	$	136.5	$	1.3	$	296.1	$	—		$	433.9
Accounts receivable, net	—		151.9		26.1		505.7		—			683.7
Intercompany receivables	—		343.5		316.2		9.1		(668.8		)	—
Inventories, net	—		48.6		29.6		141.2		—			219.4
Prepaid expenses and other	—		23.9		0.6		58.4		—			82.9
Total current assets	—		704.4		373.8		1,010.5		(668.8		)	1,419.9
Property, plant and equipment, net	—		208.6		100.1		771.7		—			1,080.4
Goodwill	—		—		147.8		6.6		—			154.4
Intercompany notes and accounts receivable	—		362.7		249.0		—		(611.7		)	—
Other assets and deferred charges	—		644.6		42.9		172.8		—			860.3
Investment in subsidiaries	846.1		1,562.4		—		—		(2,408.5		)	—
Total assets	$	846.1	$	3,482.7	$	913.6	$	1,961.6	$	(3,689.0	)	$	3,515.0
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	—	$	—	$	3.4	$	—		$	3.4
Accounts payable	—		131.4		42.4		323.9		—			497.7
Intercompany payables	—		312.6		161.4		194.8		(668.8		)	—
Accrued expenses and other	—		136.5		4.7		123.9		—			265.1
Total current liabilities	—		580.5		208.5		646.0		(668.8		)	766.2
Intercompany notes and accounts payable	326.1		—		47.4		238.2		(611.7		)	—
Long-term debt, net	—		1,338.8		4.2		58.0		—			1,401.0
Investment in subsidiaries obligation	—		—		104.1		—		(104.1		)	—
Other long-term liabilities	—		717.3		0.6		109.9		—			827.8
Total liabilities	326.1		2,636.6		364.8		1,052.1		(1,384.6		)	2,995.0
Total stockholders’ equity	520.0		846.1		548.8		909.5		(2,304.4		)	520.0
Total liabilities and stockholders’ equity	$	846.1	$	3,482.7	$	913.6	$	1,961.6	$	(3,689.0	)	$	3,515.0

Supplemental Guarantor Consolidating Statement of Cash Flows [Table Text Block]




	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2015
Net cash provided by operating activities	$	—		$	171.8		$	36.2		$	60.1		$	—		$	268.1
Investing activities
Purchases of property, plant and equipment	—			(26.7		)	(7.4		)	(98.0		)	—			(132.1		)
Proceeds from sale of property, plant and equipment	—			0.1			—			0.1			—			0.2
Intercompany activity	—			—			(28.5		)	—			28.5			—
Net cash used in investing activities	—			(26.6		)	(35.9		)	(97.9		)	28.5			(131.9		)
Financing activities
Net debt activity	—			(6.7		)	(0.3		)	1.3			—			(5.7		)
Employee stock option exercises	—			0.5			—			—			—			0.5
Purchase of treasury stock	(2.9		)	—			—			—			—			(2.9		)
Intercompany activity	2.9			(2.9		)	—			28.5			(28.5		)	—
Net cash provided by (used in) financing activities	—			(9.1		)	(0.3		)	29.8			(28.5		)	(8.1		)
Effect of exchange rate changes on cash	—			—			—			(11.7		)	—			(11.7		)
Net increase (decrease) in cash and cash equivalents	—			136.1			—			(19.7		)	—			116.4
Cash and cash equivalents at beginning of period	—			69.7			—			179.5			—			249.2
Cash and cash equivalents at end of period	$	—		$	205.8		$	—		$	159.8		$	—		$	365.6



Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2016
Net cash provided by operating activities	$	—		$	114.8		$	20.9		$	155.3		$	—		$	291.0
Investing activities
Purchases of property, plant and equipment	—			(25.9		)	(12.0		)	(120.8		)	—			(158.7		)
Proceeds from sale of property, plant and equipment	—			—			0.3			0.4			—			0.7
Proceeds from government grants	—			—			—			2.8			—			2.8
Final distribution of Reserve Yield Plus Fund	—			1.0			—			—			—			1.0
Acquisition, net	—			—			(5.6		)	—			—			(5.6		)
Intercompany activity	—			—			(2.0		)	—			2.0			—
Net cash used in investing activities	—			(24.9		)	(19.3		)	(117.6		)	2.0			(159.8		)
Financing activities
Net debt activity	—			(0.4		)	(0.3		)	23.3			—			22.6
Employee stock option exercises	—			0.3			—			—			—			0.3
Purchase of treasury stock	(5.3		)	—			—			—			—			(5.3		)
Intercompany activity	5.3			(5.3		)	—			2.0			(2.0		)	—
Net cash provided by (used in) financing activities	—			(5.4		)	(0.3		)	25.3			(2.0		)	17.6
Effect of exchange rate changes on cash	—			—			—			2.6			—			2.6
Net increase in cash and cash equivalents	—			84.5			1.3			65.6			—			151.4
Cash and cash equivalents at beginning of period	—			52.0			—			230.5			—			282.5
Cash and cash equivalents at end of period	$	—		$	136.5		$	1.3		$	296.1		$	—		$	433.9