Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2017

Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract]

Supplemental Guarantor Consolidating Income Statement [Table Text Block]



Condensed Consolidating Statements of Income
Three Months Ended June 30,
(in millions)
	Holdings		AAM Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Elims			Consolidated
2017
Net sales
External	$	—	$	260.3		$	560.6	$	936.9		$	—		$	1,757.8
Intercompany	—		1.9			101.9		7.9			(111.7		)	—
Total net sales	—		262.2			662.5		944.8			(111.7		)	1,757.8
Cost of goods sold	—		245.4			580.6		727.1			(111.7		)	1,441.4
Gross profit	—		16.8			81.9		217.7			—			316.4
Selling, general and administrative expenses	—		65.8			21.0		18.8			—			105.6
Amortization of intangible assets	—		1.5			22.7		0.6			—			24.8
Restructuring and acquisition-related costs	—		50.1			—		1.6			—			51.7
Operating income (loss)	—		(100.6		)	38.2		196.7			—			134.3
Non-operating income (expense), net	—		(61.6		)	7.0		(11.0		)	—			(65.6		)
Income (loss) before income taxes	—		(162.2		)	45.2		185.7			—			68.7
Income tax expense (benefit)	—		(30.4		)	15.8		17.0			—			2.4
Earnings from equity in subsidiaries	66.2		81.3			8.2		—			(155.7		)	—
Net income (loss) before royalties	66.2		(50.5		)	37.6		168.7			(155.7		)	66.3
Royalties	—		89.2			1.3		(90.5		)	—			—
Net income after royalties	66.2		38.7			38.9		78.2			(155.7		)	66.3
Net income attributable to noncontrolling interests	—		—			—		(0.1		)	—			(0.1		)
Net income attributable to AAM	$	66.2	$	38.7		$	38.9	$	78.1		$	(155.7	)	$	66.2
Other comprehensive income, net of tax	30.4		11.3			21.6		17.1			(50.0		)	30.4
Comprehensive income attributable to AAM	$	96.6	$	50.0		$	60.5	$	95.2		$	(205.7	)	$	96.6




	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2016
Net sales
External	$	—		$	308.4		$	56.7		$	660.3		$	—		$	1,025.4
Intercompany	—			2.8			63.3			4.1			(70.2		)	—
Total net sales	—			311.2			120.0			664.4			(70.2		)	1,025.4
Cost of goods sold	—			291.8			96.9			515.5			(70.2		)	834.0
Gross profit	—			19.4			23.1			148.9			—			191.4
Selling, general and administrative expenses	—			69.0			—			9.7			—			78.7
Amortization of intangible assets	—			1.2			—			—			—			1.2
Operating income (loss)	—			(50.8		)	23.1			139.2			—			111.5
Non-operating income (expense), net	—			(23.5		)	2.5			1.2			—			(19.8		)
Income (loss) before income taxes	—			(74.3		)	25.6			140.4			—			91.7
Income tax expense	—			13.2			0.1			7.4			—			20.7
Earnings (loss) from equity in subsidiaries	71.0			86.3			(11.3		)	—			(146.0		)	—
Net income (loss) before royalties	71.0			(1.2		)	14.2			133.0			(146.0		)	71.0
Royalties	—			72.2			—			(72.2		)	—			—
Net income after royalties	71.0			71.0			14.2			60.8			(146.0		)	71.0
Net income attributable to noncontrolling interests	—			—			—			—			—			—
Net income attributable to AAM	$	71.0		$	71.0		$	14.2		$	60.8		$	(146.0	)	$	71.0
Other comprehensive income (loss), net of tax	(4.4		)	(4.4		)	6.5			0.4			(2.5		)	(4.4		)
Comprehensive income attributable to AAM	$	66.6		$	66.6		$	20.7		$	61.2		$	(148.5	)	$	66.6



Condensed Consolidating Statements of Income
Six Months Ended June 30,
(in millions)
	Holdings		AAM Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Elims			Consolidated
2017
Net sales
External	$	—	$	556.9		$	610.8	$	1,640.0		$	—		$	2,807.7
Intercompany	—		2.2			134.7		12.9			(149.8		)	—
Total net sales	—		559.1			745.5		1,652.9			(149.8		)	2,807.7
Cost of goods sold	—		522.6			641.7		1,266.1			(149.8		)	2,280.6
Gross profit	—		36.5			103.8		386.8			—			527.1
Selling, general and administrative expenses	—		138.2			21.0		27.6			—			186.8
Amortization of intangible assets	—		2.8			22.7		0.9			—			26.4
Restructuring and acquisition-related costs	—		65.4			—		2.3						67.7
Operating income (loss)	—		(169.9		)	60.1		356.0			—			246.2
Non-operating income (expense), net	—		(87.9		)	9.4		(13.1		)	—			(91.6		)
Income (loss) before income taxes	—		(257.8		)	69.5		342.9			—			154.6
Income tax expense (benefit)	—		(33.2		)	24.2		18.9			—			9.9
Earnings from equity in subsidiaries	144.6		173.0			15.9		—			(333.5		)	—
Net income (loss) before royalties	144.6		(51.6		)	61.2		324.0			(333.5		)	144.7
Royalties	—		168.7			1.3		(170.0		)	—			—
Net income after royalties	144.6		117.1			62.5		154.0			(333.5		)	144.7
Net income attributable to noncontrolling interests	—		—			—		(0.1		)	—			(0.1		)
Net income attributable to AAM	$	144.6	$	117.1		$	62.5	$	153.9		$	(333.5	)	$	144.6
Other comprehensive income, net of tax	57.5		38.6			32.1		43.5			(114.2		)	57.5
Comprehensive income attributable to AAM	$	202.1	$	155.7		$	94.6	$	197.4		$	(447.7	)	$	202.1




	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2016
Net sales
External	$	—	$	591.6		$	111.5		$	1,291.5		$	—		$	1,994.6
Intercompany	—		4.4			123.0			7.8			(135.2		)	—
Total net sales	—		596.0			234.5			1,299.3			(135.2		)	1,994.6
Cost of goods sold	—		568.1			189.4			1,006.9			(135.2		)	1,629.2
Gross profit	—		27.9			45.1			292.4			—			365.4
Selling, general and administrative expenses	—		135.5			—			17.7			—			153.2
Amortization of intangible assets	—		2.2			—			0.1			—			2.3
Operating income (loss)	—		(109.8		)	45.1			274.6			—			209.9
Non-operating income (expense), net	—		(47.8		)	5.5			0.5			—			(41.8		)
Income (loss) before income taxes	—		(157.6		)	50.6			275.1			—			168.1
Income tax expense	—		21.0			0.2			14.8			—			36.0
Earnings (loss) from equity in subsidiaries	132.1		179.2			(20.9		)	—			(290.4		)	—
Net income before royalties	132.1		0.6			29.5			260.3			(290.4		)	132.1
Royalties	—		131.5			—			(131.5		)	—			—
Net income after royalties	132.1		132.1			29.5			128.8			(290.4		)	132.1
Net income attributable to noncontrolling interests	—		—			—			—			—			—
Net income attributable to AAM	$	132.1	$	132.1		$	29.5		$	128.8		$	(290.4	)	$	132.1
Other comprehensive income, net of tax	18.2		18.2			22.2			20.2			(60.6		)	18.2
Comprehensive income attributable to AAM	$	150.3	$	150.3		$	51.7		$	149.0		$	(351.0	)	$	150.3

Supplemental Guarantor Consolidating Balance Sheet [Table Text Block]



Condensed Consolidating Balance Sheets
(in millions)
	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims/Reclassifications			Consolidated
June 30, 2017
Assets
Current assets
Cash and cash equivalents	$	—	$	159.5	$	0.1	$	331.0	$	—		$	490.6
Accounts receivable, net	—		155.8		325.5		644.8		—			1,126.1
Intercompany receivables	—		3,979.8		342.2		8.7		(4,330.7		)	—
Inventories, net	—		34.5		145.9		204.1		—			384.5
Prepaid expenses and other	—		26.8		19.1		97.0		—			142.9
Total current assets	—		4,356.4		832.8		1,285.6		(4,330.7		)	2,144.1
Property, plant and equipment, net	—		222.3		786.0		1,201.0		—			2,209.3
Goodwill	—		—		1,204.7		406.1		—			1,610.8
Intangible assets, net	—		22.2		1,221.9		37.0		—			1,281.1
Intercompany notes and accounts receivable	231.8		—		275.8		—		(507.6		)	—
Other assets and deferred charges	—		689.5		131.8		187.5		(364.3		)	644.5
Investment in subsidiaries	1,065.3		1,797.3		331.7		—		(3,194.3		)	—
Total assets	$	1,297.1	$	7,087.7	$	4,784.7	$	3,117.2	$	(8,396.9	)	$	7,889.8
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	—	$	0.1	$	5.1	$	—		$	5.2
Accounts payable	—		142.6		239.7		458.3		—			840.6
Intercompany payables	—		661.7		3,446.0		223.0		(4,330.7		)	—
Accrued expenses and other	—		150.7		73.5		157.2		—			381.4
Total current liabilities	—		955.0		3,759.3		843.6		(4,330.7		)	1,227.2
Intercompany notes and accounts payable	—		265.7		—		241.9		(507.6		)	—
Long-term debt, net	—		4,098.5		4.8		70.3		—			4,173.6
Other long-term liabilities	—		753.1		629.4		173.7		(364.3		)	1,191.9
Total liabilities	—		6,072.3		4,393.5		1,329.5		(5,202.6		)	6,592.7
Total AAM Stockholders’ equity	1,293.4		1,015.4		391.2		1,784.0		(3,190.6		)	1,293.4
Noncontrolling interests in subsidiaries	3.7		—		—		3.7		(3.7		)	3.7
Total stockholders’ equity	1,297.1		1,015.4		391.2		1,787.7		(3,194.3		)	1,297.1
Total liabilities and stockholders’ equity	$	1,297.1	$	7,087.7	$	4,784.7	$	3,117.2	$	(8,396.9	)	$	7,889.8




	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
December 31, 2016
Assets
Current assets
Cash and cash equivalents	$	—	$	84.3	$	1.6	$	395.3	$	—		$	481.2
Accounts receivable, net	—		126.7		21.9		411.4		—			560.0
Intercompany receivables	—		442.6		326.0		9.1		(777.7		)	—
Inventories, net	—		31.3		21.5		129.5		—			182.3
Prepaid expenses and other	—		29.4		0.5		45.9		—			75.8
Total current assets	—		714.3		371.5		991.2		(777.7		)	1,299.3
Property, plant and equipment, net	—		213.7		102.9		777.1		—			1,093.7
Goodwill	—		—		147.8		6.2		—			154.0
Intangible assets, net	—		22.8		—		5.7		—			28.5
Intercompany notes and accounts receivable	—		343.9		242.2		—		(586.1		)	—
Other assets and deferred charges	—		644.9		39.8		163.7		—			848.4
Investment in subsidiaries	827.6		1,544.4		—		—		(2,372.0		)	—
Total assets	$	827.6	$	3,484.0	$	904.2	$	1,943.9	$	(3,735.8	)	$	3,423.9
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	—	$	—	$	3.3	$	—		$	3.3
Accounts payable	—		80.6		35.8		265.9		—			382.3
Intercompany payables	—		324.8		153.4		299.5		(777.7		)	—
Accrued expenses and other	—		142.2		4.3		119.4		—			265.9
Total current liabilities	—		547.6		193.5		688.1		(777.7		)	651.5
Intercompany notes and accounts payable	321.8		14.6		7.5		242.2		(586.1		)	—
Long-term debt, net	—		1,339.7		4.1		57.1		—			1,400.9
Investment in subsidiaries obligation	—		—		124.7		—		(124.7		)	—
Other long-term liabilities	—		754.5		0.6		110.6		—			865.7
Total liabilities	321.8		2,656.4		330.4		1,098.0		(1,488.5		)	2,918.1
Total stockholders’ equity	505.8		827.6		573.8		845.9		(2,247.3		)	505.8
Total liabilities and stockholders’ equity	$	827.6	$	3,484.0	$	904.2	$	1,943.9	$	(3,735.8	)	$	3,423.9

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



Condensed Consolidating Statements of Cash Flows
Six Months Ended June 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2017
Net cash provided by (used in) operating activities	$	—		$	222.8		$	(25.2	)	$	15.6		$	—	$	213.2
Investing activities
Purchases of property, plant and equipment	—			(28.4		)	(39.2		)	(71.0		)	—		(138.6		)
Proceeds from sale of property, plant and equipment	—			0.3			0.1			1.1			—		1.5
Purchase buyouts of leased equipment	—			(8.4		)	—			—			—		(8.4		)
Proceeds from sale of business, net	—			7.5			(1.6		)	—			—		5.9
Acquisition of business, net of cash acquired	—			(953.5		)	64.6			(6.6		)	—		(895.5		)
Net cash provided by (used in) investing activities	—			(982.5		)	23.9			(76.5		)	—		(1,035.1		)
Financing activities
Net debt activity	—			931.4			(0.2		)	(10.8		)	—		920.4
Debt issuance costs	—			(90.5		)	—			—			—		(90.5		)
Employee stock option exercises	—			0.9			—			—			—		0.9
Purchase of treasury stock	(6.9		)	—			—			—			—		(6.9		)
Intercompany activity	6.9			(6.9		)	—			—			—		—
Net cash provided by (used in) financing activities	—			834.9			(0.2		)	(10.8		)	—		823.9
Effect of exchange rate changes on cash	—			—			—			7.4			—		7.4
Net increase (decrease) in cash and cash equivalents	—			75.2			(1.5		)	(64.3		)	—		9.4
Cash and cash equivalents at beginning of period	—			84.3			1.6			395.3			—		481.2
Cash and cash equivalents at end of period	$	—		$	159.5		$	0.1		$	331.0		$	—	$	490.6




	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2016
Net cash provided by operating activities	$	—		$	140.2		$	11.6		$	31.7		$	—		$	183.5
Investing activities
Purchases of property, plant and equipment	—			(18.8		)	(9.6		)	(77.3		)	—			(105.7		)
Proceeds from sale of property, plant and equipment	—			—			0.2			0.4			—			0.6
Proceeds from government grants	—			—			—			2.8			—			2.8
Final distribution of Reserve Yield Plus Fund	—			1.0			—			—			—			1.0
Intercompany activity	—			—			(2.0		)	—			2.0			—
Net cash used in investing activities	—			(17.8		)	(11.4		)	(74.1		)	2.0			(101.3		)
Financing activities
Net debt activity	—			(0.4		)	(0.2		)	26.4			—			25.8
Employee stock option exercises	—			0.1			—			—			—			0.1
Purchase of treasury stock	(5.0		)	—			—			—			—			(5.0		)
Intercompany activity	5.0			(5.0		)	—			2.0			(2.0		)	—
Net cash provided by (used in) financing activities	—			(5.3		)	(0.2		)	28.4			(2.0		)	20.9
Effect of exchange rate changes on cash	—			—			—			2.8			—			2.8
Net increase (decrease) in cash and cash equivalents	—			117.1			—			(11.2		)	—			105.9
Cash and cash equivalents at beginning of period	—			52.0			—			230.5			—			282.5
Cash and cash equivalents at end of period	$	—		$	169.1		$	—		$	219.3		$	—		$	388.4