Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 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 September 30,
(in millions)
	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2018
Net sales
External	$	—	$	247.1		$	544.3		$	1,025.6		$	—		$	1,817.0
Intercompany	—		0.7			75.6			10.8			(87.1		)	—
Total net sales	—		247.8			619.9			1,036.4			(87.1		)	1,817.0
Cost of goods sold	—		220.6			594.2			821.9			(87.1		)	1,549.6
Gross profit	—		27.2			25.7			214.5			—			267.4
Selling, general and administrative expenses	—		63.4			19.6			13.3			—			96.3
Amortization of intangible assets	—		1.0			22.9			0.9			—			24.8
Restructuring and acquisition-related costs	—		5.0			3.9			2.8			—			11.7
Operating income (loss)	—		(42.2		)	(20.7		)	197.5			—			134.6
Non-operating income (expense), net	—		(60.0		)	2.8			(1.9		)	—			(59.1		)
Income (loss) before income taxes	—		(102.2		)	(17.9		)	195.6			—			75.5
Income tax expense (benefit)	—		(1.0		)	0.1			12.4			—			11.5
Earnings from equity in subsidiaries	63.8		68.1			33.8			—			(165.7		)	—
Net income (loss) before royalties	63.8		(33.1		)	15.8			183.2			(165.7		)	64.0
Royalties	—		87.6			0.7			(88.3		)	—			—
Net income after royalties	63.8		54.5			16.5			94.9			(165.7		)	64.0
Net income attributable to noncontrolling interests	—		—			—			(0.2		)	—			(0.2		)
Net income attributable to AAM	$	63.8	$	54.5		$	16.5		$	94.7		$	(165.7	)	$	63.8
Other comprehensive income (loss), net of tax	1.5		1.0			(10.3		)	—			9.3			1.5
Comprehensive income attributable to AAM	$	65.3	$	55.5		$	6.2		$	94.7		$	(156.4	)	$	65.3




	Holdings		AAM Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Elims			Consolidated
2017
Net sales
External	$	—	$	250.0		$	529.0	$	945.4		$	—		$	1,724.4
Intercompany	—		0.2			80.0		7.0			(87.2		)	—
Total net sales	—		250.2			609.0		952.4			(87.2		)	1,724.4
Cost of goods sold	—		229.6			546.3		738.0			(87.2		)	1,426.7
Gross profit	—		20.6			62.7		214.4			—			297.7
Selling, general and administrative expenses	—		57.8			24.7		19.8			—			102.3
Amortization of intangible assets	—		1.5			22.3		0.6			—			24.4
Restructuring and acquisition-related costs	—		21.6			—		1.2			—			22.8
Operating income (loss)	—		(60.3		)	15.7		192.8			—			148.2
Non-operating income (expense), net	—		(60.8		)	5.5		(0.9		)	—			(56.2		)
Income (loss) before income taxes	—		(121.1		)	21.2		191.9			—			92.0
Income tax expense (benefit)	—		(29.0		)	17.8		16.9			—			5.7
Earnings from equity in subsidiaries	86.2		29.9			25.5		—			(141.6		)	—
Net income (loss) before royalties	86.2		(62.2		)	28.9		175.0			(141.6		)	86.3
Royalties	—		84.9			1.3		(86.2		)	—			—
Net income after royalties	86.2		22.7			30.2		88.8			(141.6		)	86.3
Net income attributable to noncontrolling interests	—		—			—		(0.1		)	—			(0.1		)
Net income attributable to AAM	$	86.2	$	22.7		$	30.2	$	88.7		$	(141.6	)	$	86.2
Other comprehensive income, net of tax	47.0		16.7			42.6		51.3			(110.6		)	47.0
Comprehensive income attributable to AAM	$	133.2	$	39.4		$	72.8	$	140.0		$	(252.2	)	$	133.2



Condensed Consolidating Statements of Income
Nine Months Ended September 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2018
Net sales
External	$	—		$	851.4		$	1,699.2		$	3,025.7		$	—		$	5,576.3
Intercompany	—			4.0			231.6			31.1			(266.7		)	—
Total net sales	—			855.4			1,930.8			3,056.8			(266.7		)	5,576.3
Cost of goods sold	—			804.5			1,713.3			2,410.1			(266.7		)	4,661.2
Gross profit	—			50.9			217.5			646.7			—			915.1
Selling, general and administrative expenses	—			183.4			61.4			43.8			—			288.6
Amortization of intangible assets	—			3.9			68.0			2.6			—			74.5
Restructuring and acquisition-related costs	—			31.1			31.8			3.9			—			66.8
Gain on sale of business	—			—			(15.5		)	—			—			(15.5		)
Operating income (loss)	—			(167.5		)	71.8			596.4			—			500.7
Non-operating income (expense), net	—			(193.8		)	11.0			18.3			—			(164.5		)
Income (loss) before income taxes	—			(361.3		)	82.8			614.7			—			336.2
Income tax expense	—			8.1			0.6			22.7			—			31.4
Earnings from equity in subsidiaries	304.3			241.6			141.6			—			(687.5		)	—
Net income (loss) before royalties	304.3			(127.8		)	223.8			592.0			(687.5		)	304.8
Royalties	—			256.8			2.6			(259.4		)	—			—
Net income after royalties	304.3			129.0			226.4			332.6			(687.5		)	304.8
Net income attributable to noncontrolling interests	—			—			—			(0.5		)	—			(0.5		)
Net income attributable to AAM	$	304.3		$	129.0		$	226.4		$	332.1		$	(687.5	)	$	304.3
Other comprehensive loss, net of tax	(20.9		)	(2.6		)	(50.5		)	(37.3		)	90.4			(20.9		)
Comprehensive income attributable to AAM	$	283.4		$	126.4		$	175.9		$	294.8		$	(597.1	)	$	283.4




	Holdings		AAM Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Elims			Consolidated
2017
Net sales
External	$	—	$	806.9		$	1,139.8	$	2,585.4		$	—		$	4,532.1
Intercompany	—		2.4			214.7		19.9			(237.0		)	—
Total net sales	—		809.3			1,354.5		2,605.3			(237.0		)	4,532.1
Cost of goods sold	—		752.2			1,188.0		2,004.1			(237.0		)	3,707.3
Gross profit	—		57.1			166.5		601.2			—			824.8
Selling, general and administrative expenses	—		196.0			45.7		47.4			—			289.1
Amortization of intangible assets	—		4.3			45.0		1.5			—			50.8
Restructuring and acquisition-related costs	—		87.0			—		3.5			—			90.5
Operating income (loss)	—		(230.2		)	75.8		548.8			—			394.4
Non-operating income (expense), net	—		(148.7		)	14.9		(14.0		)	—			(147.8		)
Income (loss) before income taxes	—		(378.9		)	90.7		534.8			—			246.6
Income tax expense (benefit)	—		(62.2		)	42.0		35.8			—			15.6
Earnings from equity in subsidiaries	230.8		202.9			41.4		—			(475.1		)	—
Net income (loss) before royalties	230.8		(113.8		)	90.1		499.0			(475.1		)	231.0
Royalties	—		253.6			2.6		(256.2		)	—			—
Net income after royalties	230.8		139.8			92.7		242.8			(475.1		)	231.0
Net income attributable to noncontrolling interests	—		—			—		(0.2		)	—			(0.2		)
Net income attributable to AAM	$	230.8	$	139.8		$	92.7	$	242.6		$	(475.1	)	$	230.8
Other comprehensive income, net of tax	104.5		55.3			74.7		94.8			(224.8		)	104.5
Comprehensive income attributable to AAM	$	335.3	$	195.1		$	167.4	$	337.4		$	(699.9	)	$	335.3

Supplemental Guarantor Consolidating Balance Sheet [Table Text Block]



Condensed Consolidating Balance Sheets
(in millions)
	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
September 30, 2018
Assets
Current assets
Cash and cash equivalents	$	—	$	129.2	$	0.2	$	310.0	$	—		$	439.4
Accounts receivable, net	—		174.4		351.8		745.6		—			1,271.8
Intercompany receivables	—		2,986.5		1,876.2		90.1		(4,952.8		)	—
Inventories, net	—		40.6		150.1		252.9		—			443.6
Prepaid expenses and other	—		39.4		5.9		98.3		—			143.6
Total current assets	—		3,370.1		2,384.2		1,496.9		(4,952.8		)	2,298.4
Property, plant and equipment, net	—		278.0		752.5		1,437.4		—			2,467.9
Goodwill	—		—		1,204.5		428.5		—			1,633.0
Intangible assets, net	—		18.6		1,083.7		32.9		—			1,135.2
Intercompany notes and accounts receivable	—		1,320.5		142.9		—		(1,463.4		)	—
Other assets and deferred charges	—		339.3		119.5		252.8		—			711.6
Investment in subsidiaries	3,143.5		2,236.3		1,711.5		—		(7,091.3		)	—
Total assets	$	3,143.5	$	7,562.8	$	7,398.8	$	3,648.5	$	(13,507.5	)	$	8,246.1
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	—	$	—	$	16.5	$	—		$	16.5
Accounts payable	—		147.1		252.7		546.6		—			946.4
Intercompany payables	—		1,716.8		3,162.0		74.0		(4,952.8		)	—
Accrued expenses and other	—		173.3		45.8		232.1		—			451.2
Total current liabilities	—		2,037.2		3,460.5		869.2		(4,952.8		)	1,414.1
Intercompany notes and accounts payable	1,304.9		56.1		—		102.4		(1,463.4		)	—
Long-term debt, net	—		3,775.2		3.2		95.9		—			3,874.3
Other long-term liabilities	—		549.8		332.2		237.0		—			1,119.0
Total liabilities	1,304.9		6,418.3		3,795.9		1,304.5		(6,416.2		)	6,407.4
Total AAM Stockholders’ equity	1,836.5		1,144.5		3,602.9		2,341.9		(7,089.2		)	1,836.6
Noncontrolling interests in subsidiaries	2.1		—		—		2.1		(2.1		)	2.1
Total stockholders’ equity	1,838.6		1,144.5		3,602.9		2,344.0		(7,091.3		)	1,838.7
Total liabilities and stockholders’ equity	$	3,143.5	$	7,562.8	$	7,398.8	$	3,648.5	$	(13,507.5	)	$	8,246.1




	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
Nine Months Ended September 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2018
Net cash provided by operating activities	$	—		$	240.0		$	103.0		$	170.2		$	—	$	513.2
Investing activities
Purchases of property, plant and equipment	—			(51.8		)	(121.2		)	(218.8		)	—		(391.8		)
Proceeds from sale of property, plant and equipment	—			—			2.7			0.5			—		3.2
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		)
Intercompany activity	—			—			(43.8		)	43.8			—		—
Net cash used in investing activities	—			(51.8		)	(120.1		)	(171.4		)	—		(343.3		)
Financing activities
Net debt activity	—			(140.3		)	(0.6		)	54.2			—		(86.7		)
Debt issuance costs	—			(6.9		)	—			—			—		(6.9		)
Purchase of treasury stock	(3.7		)	—			—			—			—		(3.7		)
Purchase of noncontrolling interest	—			—			(2.2		)	—			—		(2.2		)
Intercompany activity	3.7			(3.7		)	22.5			(22.5		)	—		—
Net cash provided by (used in) financing activities	—			(150.9		)	19.7			31.7			—		(99.5		)
Effect of exchange rate changes on cash	—			—			—			(5.3		)	—		(5.3		)
Net increase in cash, cash equivalents and restricted cash	—			37.3			2.6			25.2			—		65.1
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	$	—		$	129.2		$	2.7		$	310.0		$	—	$	441.9




	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2017
Net cash provided by operating activities	$	—		$	276.4		$	9.0		$	135.3		$	—	$	420.7
Investing activities
Purchases of property, plant and equipment	—			(43.1		)	(73.3		)	(162.3		)	—		(278.7		)
Proceeds from sale of property, plant and equipment	—			0.3			0.3			1.1			—		1.7
Purchase buyouts of leased equipment	—			(12.6		)	—			—			—		(12.6		)
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	—			(1,001.4		)	(10.0		)	(167.8		)	—		(1,179.2		)
Financing activities
Net debt activity	—			926.1			(0.5		)	(12.1		)	—		913.5
Debt issuance costs	—			(90.8		)	—			—			—		(90.8		)
Employee stock option exercises	—			0.9			—			—			—		0.9
Purchase of treasury stock	(7.0		)	—			—			—			—		(7.0		)
Intercompany activity	7.0			(7.0		)	—			—			—		—
Net cash provided by (used in) financing activities	—			829.2			(0.5		)	(12.1		)	—		816.6
Effect of exchange rate changes on cash	—			—			—			10.3			—		10.3
Net increase (decrease) in cash, cash equivalents and restricted cash	—			104.2			(1.5		)	(34.3		)	—		68.4
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	$	—		$	188.5		$	0.1		$	361.0		$	—	$	549.6