Supplemental Guarantor Condensed Consolidating Financial Statements Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2018

Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract]

Supplemental Guarantor Consolidating Income Statement [Table Text Block]

These Condensed Consolidating Financial Statements are prepared under the equity method of accounting whereby the investments in subsidiaries are recorded at cost and adjusted for the parent's share of the subsidiaries' cumulative results of operations, capital contributions and distributions, and other equity changes.



Condensed Consolidating Statements of Operations

2018	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
	(in millions)
Net sales
External	$	—		$	1,088.4		$	2,204.8		$	3,977.2		$	—		$	7,270.4
Intercompany	—			4.2			294.8			41.9			(340.9		)	—
Total net sales	—			1,092.6			2,499.6			4,019.1			(340.9		)	7,270.4
Cost of goods sold	—			1,033.8			2,249.0			3,188.1			(340.9		)	6,130.0
Gross profit	—			58.8			250.6			831.0			—			1,140.4
Selling, general and administrative expenses	—			210.3			81.4			94.0			—			385.7
Amortization of intangible assets	—			5.1			90.8			3.5			—			99.4
Goodwill impairment	—			—			485.5			—			—			485.5
Restructuring and acquisition-related costs	—			34.2			40.4			4.3			—			78.9
Gain on sale of business	—			—			(15.5		)	—			—			(15.5		)
Operating income (loss)	—			(190.8		)	(432.0		)	729.2			—			106.4
Non-operating income (expense), net	—			(260.6		)	15.6			24.7			—			(220.3		)
Income (loss) before income taxes	—			(451.4		)	(416.4		)	753.9			—			(113.9		)
Income tax expense (benefit)	—			(34.2		)	(55.4		)	32.5			—			(57.1		)
Earnings (loss) from equity in subsidiaries	(57.5		)	(168.3		)	168.0			—			57.8			—
Net income (loss) before royalties	(57.5		)	(585.5		)	(193.0		)	721.4			57.8			(56.8		)
Royalties	—			276.6			3.4			(280.0		)	—			—
Net income (loss) after royalties	(57.5		)	(308.9		)	(189.6		)	441.4			57.8			(56.8		)
Net income attributable to noncontrolling interests	—			—			—			(0.7		)	—			(0.7		)
Net income (loss) attributable to AAM	$	(57.5	)	$	(308.9	)	$	(189.6	)	$	440.7		$	57.8		$	(57.5	)
Other comprehensive income (loss), net of tax	(18.9		)	9.4			(51.6		)	(44.2		)	86.4			(18.9		)
Comprehensive income (loss)	$	(76.4	)	$	(299.5	)	$	(241.2	)	$	396.5		$	144.2		$	(76.4	)



2017	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
Net sales
External	$	—		$	1,074.6		$	1,668.2		$	3,523.2		$	—		$	6,266.0
Intercompany	—			2.4			285.2			27.5			(315.1		)	—
Total net sales	—			1,077.0			1,953.4			3,550.7			(315.1		)	6,266.0
Cost of goods sold	—			996.6			1,730.9			2,734.5			(315.1		)	5,146.9
Gross profit	—			80.4			222.5			816.2			—			1,119.1
Selling, general and administrative expenses	—			223.2			63.9			103.0			—			390.1
Amortization of intangible assets	—			5.6			67.5			2.2			—			75.3
Restructuring and acquisition-related costs	—			105.2			1.9			3.6			—			110.7
Operating income (loss)	—			(253.6		)	89.2			707.4			—			543.0
Non-operating income (expense), net	—			(210.0		)	18.6			(11.6		)	—			(203.0		)
Income (loss) before income taxes	—			(463.6		)	107.8			695.8			—			340.0
Income tax expense (benefit)	—			194.1			(247.0		)	55.4			—			2.5
Earnings (loss) from equity in subsidiaries	337.1			289.5			76.1			—			(702.7		)	—
Net income (loss) before royalties	337.1			(368.2		)	430.9			640.4			(702.7		)	337.5
Royalties	—			317.3			3.6			(320.9		)	—			—
Net income (loss) after royalties	337.1			(50.9		)	434.5			319.5			(702.7		)	337.5
Net income attributable to noncontrolling interests	—			—			—			(0.4		)	—			(0.4		)
Net income (loss) attributable to AAM	$	337.1		$	(50.9	)	$	434.5		$	319.1		$	(702.7	)	$	337.1
Other comprehensive income (loss), net of tax	96.9			40.1			87.3			102.6			(230.0		)	96.9
Comprehensive income (loss)	$	434.0		$	(10.8	)	$	521.8		$	421.7		$	(932.7	)	$	434.0

2016	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
Net sales
External	$	—		$	1,109.6		$	212.2		$	2,626.2		$	—		$	3,948.0
Intercompany	—			8.3			241.6			16.1			(266.0		)	—
Total net sales	—			1,117.9			453.8			2,642.3			(266.0		)	3,948.0
Cost of goods sold	—			1,063.8			375.4			2,048.7			(266.0		)	3,221.9
Gross profit	—			54.1			78.4			593.6			—			726.1
Selling, general and administrative expenses	—			243.6			—			70.6			—			314.2
Amortization of intangible assets	—			5.0			—			—			—			5.0
Restructuring and acquisition-related costs	—			21.1			—			5.1			—			26.2
Operating income (loss)	—			(215.6		)	78.4			517.9			—			380.7
Non-operating income (expense), net	—			(96.6		)	10.9			4.0			—			(81.7		)
Income (loss) before income taxes	—			(312.2		)	89.3			521.9			—			299.0
Income tax expense	—			27.4			4.2			26.7			—			58.3
Earnings (loss) from equity in subsidiaries	240.7			267.4			(16.7		)	—			(491.4		)	—
Net income (loss) before royalties	240.7			(72.2		)	68.4			495.2			(491.4		)	240.7
Royalties	—			312.9			—			(312.9		)	—			—
Net income after royalties	240.7			240.7			68.4			182.3			(491.4		)	240.7
Net income attributable to noncontrolling interests	—			—			—			—			—			—
Net income attributable to AAM	$	240.7		$	240.7		$	68.4		$	182.3		$	(491.4	)	$	240.7
Other comprehensive loss, net of tax	(33.1		)	(33.1		)	(1.2		)	(12.1		)	46.4			(33.1		)
Comprehensive income	$	207.6		$	207.6		$	67.2		$	170.2		$	(445.0	)	$	207.6

Supplemental Guarantor Consolidating Balance Sheet [Table Text Block]



Condensed Consolidating Balance Sheets
2018	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
Assets	(in millions)
Current assets
Cash and cash equivalents	$	—	$	36.7	$	0.2	$	439.5	$	—		$	476.4
Accounts receivable, net	—		122.7		287.7		556.1		—			966.5
Intercompany receivables	—		3,337.2		2,356.3		93.5		(5,787.0		)	—
Inventories, net	—		42.5		157.7		259.5		—			459.7
Other current assets	—		34.4		6.0		86.8		—			127.2
Total current assets	—		3,573.5		2,807.9		1,435.4		(5,787.0		)	2,029.8
Property, plant and equipment, net	—		275.8		758.6		1,480.0		—			2,514.4
Goodwill	—		—		719.0		422.8		—			1,141.8
Other intangible assets, net	—		18.6		1,059.6		32.9		—			1,111.1
Intercompany notes and accounts receivable	—		1,316.8		144.5		—		(1,461.3		)	—
Other assets and deferred charges	—		319.8		126.4		267.4		—			713.6
Investment in subsidiaries	2,790.5		2,241.5		1,748.7		—		(6,780.7		)	—
Total assets	$	2,790.5	$	7,746.0	$	7,364.7	$	3,638.5	$	(14,029.0	)	$	7,510.7
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt	$	—	$	100.0	$	—	$	21.6	$	—		$	121.6
Accounts payable	—		94.2		246.5		499.5		—			840.2
Intercompany payables	—		2,050.0		3,615.7		121.3		(5,787.0		)	—
Other current liabilities	—		169.0		35.8		190.2		—			395.0
Total current liabilities	—		2,413.2		3,898.0		832.6		(5,787.0		)	1,356.8
Intercompany notes and accounts payable	1,304.2		12.5		—		144.6		(1,461.3		)	—
Long-term debt, net	—		3,578.3		3.0		105.5		—			3,686.8
Other long-term liabilities	—		508.9		271.7		200.2		—			980.8
Total liabilities	1,304.2		6,512.9		4,172.7		1,282.9		(7,248.3		)	6,024.4
Total AAM stockholders' equity	1,483.9		1,233.1		3,192.0		2,353.2		(6,778.3		)	1,483.9
Noncontrolling interests in subsidiaries	2.4		—		—		2.4		(2.4		)	2.4
Total stockholders' equity	1,486.3		1,233.1		3,192.0		2,355.6		(6,780.7		)	1,486.3
Total liabilities and stockholders' equity	$	2,790.5	$	7,746.0	$	7,364.7	$	3,638.5	$	(14,029.0	)	$	7,510.7

2017	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
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
Other current assets	—		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
Other 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		)	—
Other current liabilities	—		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

2018	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
	(in millions)
Net cash provided by operating activities	$	—		$	262.0		$	145.5		$	364.0		$	—	$	771.5
Investing activities
Purchases of property, plant and equipment	—			(63.2		)	(163.8		)	(297.7		)	—		(524.7		)
Proceeds from sale of property, plant and equipment	—			—			4.3			0.6			—		4.9
Purchase buyouts of leased equipment	—			—			(0.5		)	—			—		(0.5		)
Proceeds from sale of business	—			—			42.7			4.4			—		47.1
Acquisition of business, net of cash acquired	—			—			—			(1.3		)	—		(1.3		)
Investment in affiliates	—			(3.0		)	—			(0.7		)	—		(3.7		)
Intercompany activity	—			—			(44.1		)	44.1			—		—
Net cash used in investing activities	—			(66.2		)	(161.4		)	(250.6		)	—		(478.2		)
Financing activities
Net debt activity	—			(240.4		)	(0.7		)	69.5			—		(171.6		)
Debt issuance costs	—			(6.9		)	—			—			—		(6.9		)
Purchase of treasury stock	(3.7		)	—			—			—			—		(3.7		)
Purchase of noncontrolling interest	—			—			(2.3		)	—			—		(2.3		)
Intercompany activity	3.7			(3.7		)	21.5			(21.5		)	—		—
Net cash provided by (used in) financing activities	—			(251.0		)	18.5			48.0			—		(184.5		)
Effect of exchange rate changes on cash	—			—			—			(6.7		)	—		(6.7		)
Net increase (decrease) in cash, cash equivalents and restricted cash	—			(55.2		)	2.6			154.7			—		102.1
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	$	—		$	36.7		$	2.7		$	439.5		$	—	$	478.9

2017	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
Net cash provided by operating activities	$	—		$	410.4		$	33.1		$	203.5		$	—	$	647.0
Investing activities
Purchases of property, plant and equipment	—			(69.1		)	(100.4		)	(308.2		)	—		(477.7		)
Proceeds from sale of property, plant and equipment	—			0.3			0.3			1.9			—		2.5
Purchase buyouts of leased equipment	—			(13.3		)	—			—			—		(13.3		)
Proceeds from sale of business	—			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	—			(1,028.1		)	(37.1		)	(312.9		)	—		(1,378.1		)
Financing activities
Net debt activity	—			725.6			(0.7		)	(12.2		)	—		712.7
Debt issuance costs	—			(91.0		)	—			—			—		(91.0		)
Employee stock option exercises	—			0.9			—			—			—		0.9
Purchase of treasury stock	(7.0		)	—			—			—			—		(7.0		)
Intercompany activity	7.0			(10.2		)	3.2			—			—		—
Net cash provided by (used in) financing activities	—			625.3			2.5			(12.2		)	—		615.6
Effect of exchange rate changes on cash	—			—			—			11.1			—		11.1
Net increase (decrease) in cash, cash equivalents and restricted cash	—			7.6			(1.5		)	(110.5		)	—		(104.4		)
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	$	—		$	91.9		$	0.1		$	284.8		$	—	$	376.8



2016	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated

Net cash provided by operating activities	$	—		$	78.3		$	25.3		$	304.0		$	—	$	407.6
Investing activities
Purchases of property, plant and equipment	—			(36.8		)	(18.0		)	(168.2		)	—		(223.0		)
Proceeds from sale of property, plant and equipment	—			—			0.3			1.4			—		1.7
Purchase buyouts of leased equipment	—			(4.6		)	—			—			—		(4.6		)
Acquisition of business, net of cash acquired	—			—			(5.6		)	—			—		(5.6		)
Other, net	—			1.0			—			2.8			—		3.8
Net cash used in investing activities	—			(40.4		)	(23.3		)	(164.0		)	—		(227.7		)
Financing activities
Net debt activity	—			(0.7		)	(0.4		)	24.4			—		23.3
Employee stock option exercises	—			0.3			—			—			—		0.3
Purchase of treasury stock	(5.2		)	—			—			—			—		(5.2		)
Intercompany activity	5.2			(5.2		)	—			—			—		—
Net cash provided by (used in) financing activities	—			(5.6		)	(0.4		)	24.4			—		18.4
Effect of exchange rate changes on cash	—			—			—			0.4			—		0.4
Net increase in cash, cash equivalents and restricted cash	—			32.3			1.6			164.8			—		198.7
Cash, cash equivalents and restricted cash at beginning of period	—			52.0			—			230.5			—		282.5
Cash, cash equivalents and restricted cash at end of period	$	—		$	84.3		$	1.6		$	395.3		$	—	$	481.2