Condensed consolidating financial statements

The Senior Notes are guaranteed by our domestic subsidiaries which are 100% owned, directly or indirectly, by the Company. The guarantees are full and unconditional, joint and several and on an unsecured basis.



Condensed consolidating statements of operations and comprehensive income

	December 31, 2013
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
							(in thousands)
Net sales	$	—		$	1,142,000		$	510,460	$	(127,649	)	$	1,524,811
Cost of sales	—			804,413			370,517		(125,344		)	1,049,586
Gross profit	—			337,587			139,943		(2,305		)	475,225
Operating expenses
Selling, general and administrative expenses	—			211,863			57,806		—			269,669
Other operating expense	—			2,821			493		—			3,314
Total operating expenses	—			214,684			58,299		—			272,983
Earnings from equity investment	—			7,312			—					7,312
Equity earnings from affiliate, net of tax	142,799			53,520			—		(196,319		)	—
Operating income	142,799			183,735			81,644		(198,624		)	209,554
Other expense (income)
Interest expense	18,251			101			18		—			18,370
Interest income with affiliate	—			(3,987		)	—		3,987			—
Interest expense with affiliate	—			—			3,987		(3,987		)	—
Foreign exchange (gains) losses and other, net	—			(624		)	3,577		—			2,953
Deferred loan costs written off	2,149			—			—		—			2,149
Total other expense (income)	20,400			(4,510		)	7,582		—			23,472
Income before income taxes	122,399			188,245			74,062		(198,624		)	186,082
Provision for income tax expense	(7,140		)	45,446			18,172		—			56,478
Net income	129,539			142,799			55,890		(198,624		)	129,604
Less: Income attributable to noncontrolling interest	—			—			65		—			65
Net income attributable to common stockholders	129,539			142,799			55,825		(198,624		)	129,539

Other comprehensive income, net of tax:
Net income	129,539			142,799			55,890		(198,624		)	129,604
Change in foreign currency translation, net of tax of $0	7,525			7,525			7,525		(15,050		)	7,525
Change in pension liability	223			223			223		(446		)	223
Comprehensive income	137,287			150,547			63,638		(214,120		)	137,352
Less: comprehensive (income) loss attributable to noncontrolling interests	—			—			72		—			72
Comprehensive income attributable to common stockholders	$	137,287		$	150,547		$	63,710	$	(214,120	)	$	137,424



Condensed consolidating statements of operations and comprehensive income

	December 31, 2012
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Net sales	$	—		$	1,072,732		$	474,864		$	(132,663	)	$	1,414,933
Cost of sales	—			742,473			340,240			(130,837		)	951,876
Gross profit	—			330,259			134,624			(1,826		)	463,057
Operating expenses
Selling, general and administrative expenses	—			176,417			48,851			—			225,268
Contingent consideration (benefit)	—			(4,568		)	—			—			(4,568		)
Other operating expense (income)	—			3,446			(1,969		)	—			1,477
Total operating expenses	—			175,295			46,882			—			222,177
Equity earnings from affiliate, net of tax	157,847			58,417			—			(216,264		)	—
Operating income	157,847			213,381			87,742			(218,090		)	240,880
Other expense (income)
Interest expense	15,997			361			14			—			16,372
Interest income with affiliate	(6,164		)	—			—			6,164			—
Interest expense with affiliate	—			—			6,164			(6,164		)	—
Foreign exchange (gains) losses and other, net	—			(21		)	1,734			—			1,713
Total other expense (income)	9,833			340			7,912			—			18,085
Income before income taxes	148,014			213,041			79,830			(218,090		)	222,795
Provision for income tax expense	(3,442		)	55,194			19,513			—			71,265
Net income	151,456			157,847			60,317			(218,090		)	151,530
Less: Income attributable to noncontrolling interest	—			—			74			—			74
Net income attributable to common stockholders	151,456			157,847			60,243			(218,090		)	151,456

Other comprehensive income, net of tax:
Net income	151,456			157,847			60,317			(218,090		)	151,530
Change in foreign currency translation, net of tax of $0	15,887			15,887			15,887			(31,774		)	15,887
Comprehensive income	167,343			173,734			76,204			(249,864		)	167,417
Less: comprehensive (income) loss attributable to noncontrolling interests	—			—			(44		)	—			(44		)
Comprehensive income attributable to common stockholders	$	167,343		$	173,734		$	76,160		$	(249,864	)	$	167,373



Condensed consolidating statements of operations and comprehensive income

	December 31, 2011
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Net sales	$	—		$	848,640		$	384,114		$	(104,623	)	$	1,128,131
Cost of sales	—			588,781			280,579			(103,690		)	765,670
Gross profit	—			259,859			103,535			(933		)	362,461
Operating expenses
Selling, general and administrative expenses	—			142,468			44,306			—			186,774
Contingent consideration expense	—			12,100			—			—			12,100
Other operating expense	—			2,227			747			—			2,974
Total operating expenses	—			156,795			45,053			—			201,848
Equity earnings from affiliate, net of tax	99,284			35,617			—			(134,901		)	—
Operating income	99,284			138,681			58,482			(135,834		)	160,613
Other expense (income)
Interest expense	19,130			374			28			—			19,532
Interest income with affiliate	(9,989		)	—			—			9,989			—
Interest expense with affiliate	—			—			9,989			(9,989		)	—
Foreign exchange (gains) losses and other, net	—			1,160			(782		)	—			378
Total other expense (income)	9,141			1,534			9,235			—			19,910
Income before income taxes	90,143			137,147			49,247			(135,834		)	140,703
Provision for income tax expense	(3,199		)	37,863			12,446			—			47,110
Net income	93,342			99,284			36,801			(135,834		)	93,593
Less: Income attributable to noncontrolling interest	—			—			251			—			251
Net income attributable to common stockholders	93,342			99,284			36,550			(135,834		)	93,342

Other comprehensive income, net of tax:
Net income	93,342			99,284			36,801			(135,834		)	93,593
Change in foreign currency translation, net of tax of $0	(5,094		)	(5,094		)	(5,094		)	10,188			(5,094		)
Gain on derivative instruments, net of tax of $768	1,426			—			—			—			1,426
Comprehensive income	89,674			94,190			31,707			(125,646		)	89,925
Less: comprehensive (income) loss attributable to noncontrolling interests	—			—			(85		)	—			(85		)
Comprehensive income attributable to common stockholders	$	89,674		$	94,190		$	31,622		$	(125,646	)	$	89,840



Condensed consolidating balance sheets

	December 31, 2013
	FET (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
					(in thousands)
Assets
Current assets
Cash and cash equivalents	$	—	$	—	$	39,582	$	—		$	39,582
Accounts receivable—trade, net	—		172,563		77,709		—			250,272
Inventories	—		310,191		135,924		(5,066		)	441,049
Other current assets	63		41,495		37,007		—			78,565
Total current assets	63		524,249		290,222		(5,066		)	809,468
Property and equipment, net of accumulated depreciation	—		143,180		37,112		—			180,292
Intangibles	—		220,980		74,372		—			295,352
Goodwill	—		526,083		276,235		—			802,318
Investment in unconsolidated subsidiary	—		60,292		—		—			60,292
Investment in affiliates	1,209,699		454,024		—		(1,663,723		)	—
Long-term loan and advances to affiliates	623,337		97,316		—		(720,653		)	—
Other long-term assets	15,658		4,168		1,321		—			21,147
Total assets	$	1,848,757	$	2,030,292	$	679,262	$	(2,389,442	)	$	2,168,869
Liabilities and equity
Current liabilities
Accounts payable—trade	$	—	$	69,467	$	30,754	$	—		$	100,221
Accrued liabilities	7,194		43,693		45,642		—			96,529
Current portion of debt and other current liabilities	—		9,217		14,016		—			23,233
Total current liabilities	7,194		122,377		90,412		—			219,983
Long-term debt, net of current portion	511,208		824		45		—			512,077
Long-term loans and payables to affiliates	—		619,778		100,875		(720,653		)	—
Other long-term liabilities	—		77,614		28,229		—			105,843
Total liabilities	518,402		820,593		219,561		(720,653		)	837,903

Total stockholder's equity	1,330,355		1,209,699		459,090		(1,668,789		)	1,330,355
Noncontrolling interest in subsidiary	—		—		611		—			611
Equity	1,330,355		1,209,699		459,701		(1,668,789		)	1,330,966
Total liabilities and equity	$	1,848,757	$	2,030,292	$	679,262	$	(2,389,442	)	$	2,168,869



Condensed consolidating balance sheets

	December 31, 2012
	FET (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
					(in thousands)
Assets
Current assets
Cash and cash equivalents	$	—	$	8,092	$	32,971	$	—		$	41,063
Accounts receivable—trade, net	—		167,949		60,998		—			228,947
Inventories	—		343,828		114,060		(2,759		)	455,129
Other current assets	48		40,061		9,629		—			49,738
Total current assets	48		559,930		217,658		(2,759		)	774,877
Property and equipment, net of accumulated depreciation	—		118,646		34,337		—			152,983
Intangibles	—		226,933		30,486		—			257,419
Goodwill	—		487,778		208,021		—			695,799
Investment in affiliates	1,059,017		392,622		—		(1,451,639		)	—
Long-term advances to affiliates	515,088		—		—		(515,088		)	—
Other long-term assets	8,045		2,926		931		—			11,902
Total assets	$	1,582,198	$	1,788,835	$	491,433	$	(1,969,486	)	$	1,892,980
Liabilities and equity
Current liabilities
Accounts payable—trade	$	—	$	72,820	$	26,170	$	—		$	98,990
Accrued liabilities	1,282		54,363		30,248		—			85,893
Current portion of debt and other current liabilities	19,464		48,204		20,516		—			88,184
Total current liabilities	20,746		175,387		76,934		—			273,067
Long-term debt, net of current portion	399,980		197		24		—			400,201
Long-term payables to affiliates	—		503,585		11,503		(515,088		)	—
Other long-term liabilities	—		50,649		6,908		—			57,557
Total liabilities	420,726		729,818		95,369		(515,088		)	730,825

Total stockholder's equity	1,161,472		1,059,017		395,381		(1,454,398		)	1,161,472
Noncontrolling interest in subsidiary	—		—		683		—			683
Equity	1,161,472		1,059,017		396,064		(1,454,398		)	1,162,155
Total liabilities and equity	$	1,582,198	$	1,788,835	$	491,433	$	(1,969,486	)	$	1,892,980



Condensed consolidating statements of cash flows

	Year ended December 31, 2013
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Cash flows from (used in) operating activities	$	(3,683	)	$	157,198		$	57,878		$	—		$	211,393
Cash flows from investing activities
Acquisition of businesses, net of cash acquired	—			(54,389		)	(127,329		)	—			(181,718		)
Investment in unconsolidated subsidiary	—			(48,013		)	—			—			(48,013		)
Capital expenditures for property and equipment	—			(48,270		)	(11,993		)	—			(60,263		)
Long-term loans and advances to affiliates	(77,933		)	(97,316		)	—			175,249			—
Other	—			392			572			—			964
Net cash provided by (used in) investing activities	(77,933		)	(247,596		)	(138,750		)	175,249			(289,030		)
Cash flows from financing activities
Borrowings under Credit Facility due to acquisitions	—			54,389			127,329			—			181,718
Borrowings under Credit Facility	402,748			(52,184		)	(127,329		)	—			223,235
Issuance of Senior Notes	403,250			—			—			—			403,250
Repayment of long-term debt	(713,521		)	(1,639		)	29			—			(715,131		)
Long-term loans and advances to affiliates	—			86,897			88,352			(175,249		)	—
Deferred financing costs	(12,003		)	—			—			—			(12,003		)
Payment of contingent consideration	—			(11,435		)	—			—			(11,435		)
Other	1,142			6,278			—			—			7,420
Net cash provided by (used in) financing activities	81,616			82,306			88,381			(175,249		)	77,054
Effect of exchange rate changes on cash	—			—			(898		)	—			(898		)
Net increase (decrease) in cash and cash equivalents	—			(8,092		)	6,611			—			(1,481		)
Cash and cash equivalents
Beginning of period	—			8,092			32,971			—			41,063
End of period	$	—		$	—		$	39,582		$	—		$	39,582



Condensed consolidating statements of cash flows

	Year ended December 31, 2012
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Cash flows from (used in) operating activities	$	(6,078	)	$	79,366		$	64,653		$	—		$	137,941
Cash flows from investing activities
Acquisition of businesses, net of cash acquired	—			(139,889		)	—			—			(139,889		)
Capital expenditures for property and equipment	—			(36,354		)	(13,331		)	—			(49,685		)
Long-term loans and advances to affiliates	(69,701		)	—			—			69,701			—
Other	—			2,296			2,755			—			5,051
Net cash provided by (used in) investing activities	(69,701		)	(173,947		)	(10,576		)	69,701			(184,523		)
Cash flows from financing activities
Borrowings under Credit Facility due to acquisitions	—			139,889			—			—			139,889
Borrowings under Credit Facility	203,155			(139,758		)	—			—			63,397
Repayment of long-term debt	(448,118		)	(5,655		)	(246		)	—			(454,019		)
Long-term loans and advances to affiliates	—			110,111			(40,410		)	(69,701		)	—
Proceeds from IPO	256,381			—			—			—			256,381
Proceeds from concurrent private placement	50,000			—			—			—			50,000
Payment of contingent consideration	—			(11,100		)	—			—			(11,100		)
Proceeds from stock issuance	14,432			—			—			—			14,432
Other	(71		)	6,873			—			—			6,802
Net cash provided by (used in) financing activities	75,779			100,360			(40,656		)	(69,701		)	65,782
Effect of exchange rate changes on cash	—			—			1,315			—			1,315
Net increase (decrease) in cash and cash equivalents	—			5,779			14,736			—			20,515
Cash and cash equivalents
Beginning of period	—			2,313			18,235			—			20,548
End of period	$	—		$	8,092		$	32,971		$	—		$	41,063



Condensed consolidating statements of cash flows

	Year ended December 31, 2011
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Cash flows from (used in) operating activities	$	(424	)	$	37,573		$	2,126		$	—		$	39,275
Cash flows from investing activities
Acquisition of businesses, net of cash acquired	—			(430,685		)	(79,172		)	—			(509,857		)
Capital expenditures for property and equipment	—			(28,402		)	(12,761		)	—			(41,163		)
Long-term loans and advances to affiliates	(507,705		)	—			—			507,705			—
Other	—			3,537			919			(3,550		)	906
Net cash provided by (used in) investing activities	(507,705		)	(455,550		)	(91,014		)	504,155			(550,114		)
Cash flows from financing activities
Borrowings under Credit Facility due to acquisitions	—			430,685			79,172			—			509,857
Borrowings under Credit Facility	519,045			(429,659		)	(78,896		)	—			10,490
Repayment of long-term debt	(61,973		)	—			—			—			(61,973		)
Long-term loans and advances to affiliates	—			416,034			91,671			(507,705		)	—
Proceeds from stock issuance	57,046			—			—			—			57,046
Other	(5,989		)	717			(3,550		)	3,550			(5,272		)
Net cash provided by (used in) financing activities	508,129			417,777			88,397			(504,155		)	510,148
Effect of exchange rate changes on cash	—			—			891			—			891
Net increase (decrease) in cash and cash equivalents	—			(200		)	400			—			200
Cash and cash equivalents
Beginning of period	—			2,513			17,835			—			20,348
End of period	$	—		$	2,313		$	18,235		$	—		$	20,548