Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2018

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
2018
Net sales
External	$	—		$	302.8		$	572.6		$	1,025.5		$	—		$	1,900.9
Intercompany	—			2.3			78.0			10.8			(91.1		)	—
Total net sales	—			305.1			650.6			1,036.3			(91.1		)	1,900.9
Cost of goods sold	—			305.7			542.3			812.6			(91.1		)	1,569.5
Gross profit (loss)	—			(0.6		)	108.3			223.7			—			331.4
Selling, general and administrative expenses	—			60.2			19.9			14.9			—			95.0
Amortization of intangible assets	—			1.4			22.5			0.9			—			24.8
Restructuring and acquisition-related costs	—			9.8			26.8			0.2			—			36.8
Gain on sale of business	—			—			(15.5		)	—			—			(15.5		)
Operating income (loss)	—			(72.0		)	54.6			207.7			—			190.3
Non-operating income (expense), net	—			(63.3		)	3.2			23.1			—			(37.0		)
Income (loss) before income taxes	—			(135.3		)	57.8			230.8			—			153.3
Income tax expense (benefit)	—			8.0			0.1			(6.1		)	—			2.0
Earnings from equity in subsidiaries	151.1			106.3			67.3			—			(324.7		)	—
Net income (loss) before royalties	151.1			(37.0		)	125.0			236.9			(324.7		)	151.3
Royalties	—			85.0			0.9			(85.9		)	—			—
Net income after royalties	151.1			48.0			125.9			151.0			(324.7		)	151.3
Net income attributable to noncontrolling interests	—			—			—			(0.2		)	—			(0.2		)
Net income attributable to AAM	$	151.1		$	48.0		$	125.9		$	150.8		$	(324.7	)	$	151.1
Other comprehensive loss, net of tax	(76.7		)	(29.2		)	(75.3		)	(81.0		)	185.5			(76.7		)
Comprehensive income attributable to AAM	$	74.4		$	18.8		$	50.6		$	69.8		$	(139.2	)	$	74.4




	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



Condensed Consolidating Statements of Income
Six Months Ended June 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2018
Net sales
External	$	—		$	604.3		$	1,154.9		$	2,000.1		$	—		$	3,759.3
Intercompany	—			3.3			156.0			20.3			(179.6		)	—
Total net sales	—			607.6			1,310.9			2,020.4			(179.6		)	3,759.3
Cost of goods sold	—			583.9			1,119.1			1,588.2			(179.6		)	3,111.6
Gross profit	—			23.7			191.8			432.2			—			647.7
Selling, general and administrative expenses	—			120.0			41.8			30.5			—			192.3
Amortization of intangible assets	—			2.9			45.1			1.7			—			49.7
Restructuring and acquisition-related costs	—			26.1			27.9			1.1			—			55.1
Gain on sale of business	—			—			(15.5		)	—			—			(15.5		)
Operating income (loss)	—			(125.3		)	92.5			398.9			—			366.1
Non-operating income (expense), net	—			(133.8		)	8.2			20.2			—			(105.4		)
Income (loss) before income taxes	—			(259.1		)	100.7			419.1			—			260.7
Income tax expense	—			9.1			0.5			10.3			—			19.9
Earnings from equity in subsidiaries	240.5			173.5			107.8			—			(521.8		)	—
Net income (loss) before royalties	240.5			(94.7		)	208.0			408.8			(521.8		)	240.8
Royalties	—			169.2			1.9			(171.1		)	—			—
Net income after royalties	240.5			74.5			209.9			237.7			(521.8		)	240.8
Net income attributable to noncontrolling interests	—			—			—			(0.3		)	—			(0.3		)
Net income attributable to AAM	$	240.5		$	74.5		$	209.9		$	237.4		$	(521.8	)	$	240.5
Other comprehensive loss, net of tax	(22.4		)	(3.6		)	(40.2		)	(37.3		)	81.1			(22.4		)
Comprehensive income attributable to AAM	$	218.1		$	70.9		$	169.7		$	200.1		$	(440.7	)	$	218.1




	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

Supplemental Guarantor Consolidating Balance Sheet [Table Text Block]



Condensed Consolidating Balance Sheets
(in millions)
	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
June 30, 2018
Assets
Current assets
Cash and cash equivalents	$	—	$	82.3	$	0.3	$	270.6	$	—		$	353.2
Accounts receivable, net	—		182.7		339.3		731.6		—			1,253.6
Intercompany receivables	—		2,748.4		1,446.6		91.1		(4,286.1		)	—
Inventories, net	—		34.4		153.8		238.2		—			426.4
Prepaid expenses and other	—		37.3		4.9		79.6		—			121.8
Total current assets	—		3,085.1		1,944.9		1,411.1		(4,286.1		)	2,155.0
Property, plant and equipment, net	—		259.6		770.3		1,429.4		—			2,459.3
Goodwill	—		—		1,204.5		427.2		—			1,631.7
Intangible assets, net	—		19.9		1,106.2		33.7		—			1,159.8
Intercompany notes and accounts receivable	11.7		1,319.7		133.7		—		(1,465.1		)	—
Other assets and deferred charges	—		341.9		115.3		227.4		—			684.6
Investment in subsidiaries	3,071.1		2,146.6		1,690.1		—		(6,907.8		)	—
Total assets	$	3,082.8	$	7,172.8	$	6,965.0	$	3,528.8	$	(12,659.0	)	$	8,090.4
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	11.5	$	—	$	21.7	$	—		$	33.2
Accounts payable	—		156.8		245.6		528.5		—			930.9
Intercompany payables	—		1,404.5		2,747.6		134.0		(4,286.1		)	—
Accrued expenses and other	—		141.1		40.9		185.6		—			367.6
Total current liabilities	—		1,713.9		3,034.1		869.8		(4,286.1		)	1,331.7
Intercompany notes and accounts payable	1,316.6		15.2		—		133.3		(1,465.1		)	—
Long-term debt, net	—		3,785.0		3.5		84.5		—			3,873.0
Other long-term liabilities	—		598.8		332.0		188.7		—			1,119.5
Total liabilities	1,316.6		6,112.9		3,369.6		1,276.3		(5,751.2		)	6,324.2
Total AAM Stockholders’ equity	1,764.2		1,059.9		3,595.4		2,250.5		(6,905.8		)	1,764.2
Noncontrolling interests in subsidiaries	2.0		—		—		2.0		(2.0		)	2.0
Total stockholders’ equity	1,766.2		1,059.9		3,595.4		2,252.5		(6,907.8		)	1,766.2
Total liabilities and stockholders’ equity	$	3,082.8	$	7,172.8	$	6,965.0	$	3,528.8	$	(12,659.0	)	$	8,090.4




	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
December 31, 2017
Assets
Current assets
Cash and cash equivalents	$	—	$	91.9	$	0.1	$	284.8	$	—		$	376.8
Accounts receivable, net	—		138.9		287.9		609.1		—			1,035.9
Intercompany receivables	—		3,475.2		479.9		7.5		(3,962.6		)	—
Inventories, net	—		37.2		147.4		207.4		—			392.0
Prepaid expenses and other	—		40.4		9.9		90.0		—			140.3
Total current assets	—		3,783.6		925.2		1,198.8		(3,962.6		)	1,945.0
Property, plant and equipment, net	—		250.9		786.8		1,365.2		—			2,402.9
Goodwill	—		—		1,218.4		435.9		—			1,654.3
Intangible assets, net	—		21.0		1,155.6		35.9		—			1,212.5
Intercompany notes and accounts receivable	11.7		—		243.5		—		(255.2		)	—
Other assets and deferred charges	—		349.1		122.8		196.2		—			668.1
Investment in subsidiaries	2,841.3		1,955.2		1,280.1		—		(6,076.6		)	—
Total assets	$	2,853.0	$	6,359.8	$	5,732.4	$	3,232.0	$	(10,294.4	)	$	7,882.8
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	—	$	—	$	5.9	$	—		$	5.9
Accounts payable	—		139.0		204.6		455.4		—			799.0
Intercompany payables	1,313.0		563.7		2,017.7		68.2		(3,962.6		)	—
Accrued expenses and other	—		181.6		52.4		177.5		—			411.5
Total current liabilities	1,313.0		884.3		2,274.7		707.0		(3,962.6		)	1,216.4
Intercompany notes and accounts payable	—		11.7		—		243.5		(255.2		)	—
Long-term debt, net	—		3,894.6		4.4		70.3		—			3,969.3
Other long-term liabilities	—		639.1		333.2		184.8		—			1,157.1
Total liabilities	1,313.0		5,429.7		2,612.3		1,205.6		(4,217.8		)	6,342.8
Total AAM Stockholders’ equity	1,536.0		930.1		3,120.1		2,022.4		(6,072.6		)	1,536.0
Noncontrolling interests in subsidiaries	4.0		—		—		4.0		(4.0		)	4.0
Total stockholders’ equity	1,540.0		930.1		3,120.1		2,026.4		(6,076.6		)	1,540.0
Total liabilities and stockholders’ equity	$	2,853.0	$	6,359.8	$	5,732.4	$	3,232.0	$	(10,294.4	)	$	7,882.8

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
2018
Net cash provided by operating activities	$	—		$	152.3		$	8.6		$	128.5		$	—	$	289.4
Investing activities
Purchases of property, plant and equipment	—			(40.3		)	(74.5		)	(158.2		)	—		(273.0		)
Proceeds from sale of property, plant and equipment	—			—			0.5			0.4			—		0.9
Purchase buyouts of leased equipment	—			—			(0.5		)	—			—		(0.5		)
Proceeds from sale of business, net	—			—			42.7			4.4			—		47.1
Acquisition of business, net of cash acquired	—			—			—			(1.3		)	—		(1.3		)
Net cash used in investing activities	—			(40.3		)	(31.8		)	(154.7		)	—		(226.8		)
Financing activities
Net debt activity	—			(111.2		)	(0.4		)	44.8			—		(66.8		)
Debt issuance costs	—			(6.8		)	—			—			—		(6.8		)
Purchase of treasury stock	(3.6		)	—			—			—			—		(3.6		)
Purchase of noncontrolling interest	—			—			(2.2		)	—			—		(2.2		)
Intercompany activity	3.6			(3.6		)	28.5			(28.5		)	—		—
Net cash provided by (used in) financing activities	—			(121.6		)	25.9			16.3			—		(79.4		)
Effect of exchange rate changes on cash	—			—			—			(4.3		)	—		(4.3		)
Net increase (decrease) in cash, cash equivalents and restricted cash	—			(9.6		)	2.7			(14.2		)	—		(21.1		)
Cash, cash equivalents and restricted cash at beginning of period	—			91.9			0.1			284.8			—		376.8
Cash, cash equivalents and restricted cash at end of period	$	—		$	82.3		$	2.8		$	270.6		$	—	$	355.7




	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 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, cash equivalents and restricted cash	—			75.2			(1.5		)	(64.3		)	—		9.4
Cash, cash equivalents and restricted cash at beginning of period	—			84.3			1.6			395.3			—		481.2
Cash, cash equivalents and restricted cash at end of period	$	—		$	159.5		$	0.1		$	331.0		$	—	$	490.6