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 comprehensive income (loss)

	Three months ended March 31, 2016
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Net sales	$	—		$	117,314		$	55,634		$	(13,507	)	$	159,441
Cost of sales	—			92,614			45,132			(12,862		)	124,884
Gross profit	—			24,700			10,502			(645		)	34,557
Operating expenses
Selling, general and administrative expenses	—			47,664			12,349			—			60,013
Transaction expenses	—			166			—			—			166
Loss (gain) on sale of assets and other	—			(36		)	4			—			(32		)
Total operating expenses	—			47,794			12,353			—			60,147
Earnings from equity investment	—			577			—			—			577
Equity earnings from affiliate, net of tax	(16,614		)	(1,089		)	—			17,703			—
Operating income	(16,614		)	(23,606		)	(1,851		)	17,058			(25,013		)
Other expense (income)
Interest expense (income)	7,148			(13		)	(2		)	—			7,133
Deferred loan costs written off	2,588			—			—			—			2,588
Foreign exchange (gains) losses and other, net	—			(82		)	(1,298		)	—			(1,380		)
Total other expense (income)	9,736			(95		)	(1,300		)	—			8,341
Income (loss) before income taxes	(26,350		)	(23,511		)	(551		)	17,058			(33,354		)
Provision (benefit) for income tax expense	(3,407		)	(6,897		)	(102		)	—			(10,406		)
Net income (loss)	(22,943		)	(16,614		)	(449		)	17,058			(22,948		)
Less: Income (loss) attributable to noncontrolling interest	—			—			(5		)	—			(5		)
Net income (loss) attributable to common stockholders	(22,943		)	(16,614		)	(444		)	17,058			(22,943		)

Other comprehensive income (loss), net of tax:
Net income (loss)	(22,943		)	(16,614		)	(449		)	17,058			(22,948		)
Change in foreign currency translation, net of tax of $0	3,472			3,472			3,472			(6,944		)	3,472
Change in pension liability	(43		)	(43		)	(43		)	86			(43		)
Comprehensive income (loss)	(19,514		)	(13,185		)	2,980			10,200			(19,519		)
Less: comprehensive (income) loss attributable to noncontrolling interests	—			—			(93		)				(93		)
Comprehensive income (loss) attributable to common stockholders	$	(19,514	)	$	(13,185	)	$	2,887		$	10,200		$	(19,612	)



Condensed consolidating statements of comprehensive income (loss)

	Three months ended March 31, 2015
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Net sales	$	—		$	269,198		$	120,317		$	(41,419	)	$	348,096
Cost of sales	—			188,767			89,676			(39,473		)	238,970
Gross profit	—			80,431			30,641			(1,946		)	109,126
Operating expenses
Selling, general and administrative expenses	—			57,372			16,188			—			73,560
Transaction Expense	—			217			—			—			217
Loss (gain) on sale of assets and other	—			(111		)	(201		)	—			(312		)
Total operating expenses	—			57,478			15,987			—			73,465
Earnings from equity investment	—			4,571			—			—			4,571
Equity earnings from affiliates, net of tax	33,604			16,237			—			(49,841		)	—
Operating income	33,604			43,761			14,654			(51,787		)	40,232
Other expense (income)
Interest expense (income)	7,588			14			25			—			7,627
Foreign exchange (gains) losses and other, net	—			(185		)	(6,471		)	—			(6,656		)
Total other expense (income)	7,588			(171		)	(6,446		)	—			971
Income before income taxes	26,016			43,932			21,100			(51,787		)	39,261
Provision for income tax expense	(2,656		)	10,328			2,933			—			10,605
Net income	28,672			33,604			18,167			(51,787		)	28,656
Less: Income (loss) attributable to noncontrolling interest	—			—			(16		)	—			(16		)
Net income attributable to common stockholders	28,672			33,604			18,183			(51,787		)	28,672

Other comprehensive income, net of tax:
Net income	28,672			33,604			18,167			(51,787		)	28,656
Change in foreign currency translation, net of tax of $0	(37,297		)	(37,297		)	(37,297		)	74,594			(37,297		)
Change in pension liability	99			99			99			(198		)	99
Comprehensive income (loss)	(8,526		)	(3,594		)	(19,031		)	22,609			(8,542		)
Less: comprehensive (income) loss attributable to noncontrolling interests	—			—			43			—			43
Comprehensive income (loss) attributable to common stockholders	$	(8,526	)	$	(3,594	)	$	(18,988	)	$	22,609		$	(8,499	)



Condensed consolidating balance sheets

	March 31, 2016
	FET (Parent)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
						(in thousands)
Assets
Current assets
Cash and cash equivalents	$	—	$	40,746		$	91,231	$	—		$	131,977
Accounts receivable—trade, net	—		71,748			37,455		—			109,203
Inventories	—		320,110			106,044		(10,049		)	416,105
Cost and profits in excess of billings	—		4,458			9,666		—			14,124
Other current assets	—		20,480			6,366		—			26,846
Total current assets	—		457,542			250,762		(10,049		)	698,255
Property and equipment, net of accumulated depreciation	—		149,830			30,376		—			180,206
Deferred financing costs, net	1,750		—			—		—			1,750
Deferred income taxes, net	—		(1		)	780		—			779
Intangibles	—		181,081			59,886		—			240,967
Goodwill	—		481,374			189,816		—			671,190
Investment in unconsolidated subsidiary	—		58,296			—		—			58,296
Investment in affiliates	1,175,421		517,135			—		(1,692,556		)	—
Long-term advances to affiliates	473,592		—			60,031		(533,623		)	—
Other long-term assets	—		2,389			737		—			3,126
Total assets	$	1,650,763	$	1,847,646		$	592,388	$	(2,236,228	)	$	1,854,569
Liabilities and equity
Current liabilities
Current portion of long-term debt	$	—	$	71		$	11	$	—		$	82
Accounts payable—trade	—		59,272			16,296		—			75,568
Accrued liabilities	13,145		34,388			8,401		—			55,934
Deferred revenue	—		2,551			6,568		—			9,119
Billings in excess of costs and profits	—		632			3,370		—			4,002
Total current liabilities	13,145		96,914			34,646		—			144,705
Long-term debt, net of current portion	396,144		15			11		—			396,170
Long-term payables to affiliates	—		533,623			—		(533,623		)	—
Deferred income taxes, net	—		25,542			14,724		—			40,266
Other long-term liabilities	—		16,131			15,333		—			31,464
Total liabilities	409,289		672,225			64,714		(533,623		)	612,605

Total stockholder's equity	1,241,474		1,175,421			527,184		(1,702,605		)	1,241,474
Noncontrolling interest in subsidiary	—		—			490		—			490
Equity	1,241,474		1,175,421			527,674		(1,702,605		)	1,241,964
Total liabilities and equity	$	1,650,763	$	1,847,646		$	592,388	$	(2,236,228	)	$	1,854,569



Condensed consolidating balance sheets

	December 31, 2015
	FET (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
					(in thousands)
Assets
Current assets
Cash and cash equivalents	$	—	$	36,884	$	72,365	$	—		$	109,249
Accounts receivable—trade, net	—		85,537		53,060		—			138,597
Inventories	—		318,360		115,165		(9,404		)	424,121
Cost and profits in excess of billings	—		6,477		5,532		—			12,009
Other current assets	—		25,447		8,389		—			33,836
Total current assets	—		472,705		254,511		(9,404		)	717,812
Property and equipment, net of accumulated depreciation	—		153,995		32,672		—			186,667
Deferred financing costs, net	4,125		—		—		—			4,125
Deferred income taxes, net	—		—		780		—			780
Intangibles	—		186,234		60,416		—			246,650
Goodwill	—		481,374		187,662		—			669,036
Investment in unconsolidated subsidiary	—		57,719		—		—			57,719
Investment in affiliates	1,188,707		514,893		—		(1,703,600		)	—
Long-term advances to affiliates	467,184		—		60,221		(527,405		)	—
Other long-term assets	—		2,549		704		—			3,253
Total assets	$	1,660,016	$	1,869,469	$	596,966	$	(2,240,409	)	$	1,886,042
Liabilities and equity
Current liabilities
Current portion of long-term debt	$	—	$	243	$	10	$	—		$	253
Accounts payable—trade	$	—	$	57,529	$	19,294	$	—		$	76,823
Accrued liabilities	7,027		40,874		10,662		—			58,563
Deferred revenue	—		1,334		5,949		—			7,283
Billings in excess of costs and profits recognized	—		1,872		6,759		—			8,631
Total current liabilities	7,027		101,852		42,674		—			151,553
Long-term debt, net of current portion	395,970		34		12		—			396,016
Long-term payables to affiliates	—		527,406		—		(527,406		)	—
Deferred income taxes, net	—		36,937		14,163		—			51,100
Other long-term liabilities	—		14,533		15,423		—			29,956
Total liabilities	402,997		680,762		72,272		(527,406		)	628,625

Total stockholder's equity	1,257,019		1,188,707		524,297		(1,713,003		)	1,257,020
Noncontrolling interest in subsidiary	—		—		397		—			397
Equity	1,257,019		1,188,707		524,694		(1,713,003		)	1,257,417
Total liabilities and equity	$	1,660,016	$	1,869,469	$	596,966	$	(2,240,409	)	$	1,886,042



Condensed consolidating statements of cash flows

	Three months ended March 31, 2016
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Cash flows from (used in) operating activities	$	1,670		$	6,093		$	19,093		$	—		$	26,856
Cash flows from investing activities
Acquisition of businesses, net of cash acquired	—			—			—			—			—
Capital expenditures for property and equipment	—			(3,991		)	(270		)	—			(4,261		)
Long-term loans and advances to affiliates	(1,324		)	348			—			976			—
Other	—			280			29			—			309
Net cash provided by (used in) investing activities	$	(1,324	)	$	(3,363	)	$	(241	)	$	976		$	(3,952	)
Cash flows from financing activities
Borrowings of long-term and short-term debt	—			8			—			—			8
Repayment of long-term and short-term debt	—			(199		)				—			(199		)
Long-term loans and advances to affiliates	—			1,324			(348		)	(976		)	—
Deferred financing costs	(513		)	—			—			—			(513		)
Proceeds from stock issuance	167			(1		)	(1		)	—			165
Net cash provided by (used in) financing activities	$	(346	)	$	1,132		$	(349	)	$	(976	)	$	(539	)
Effect of exchange rate changes on cash	—			—			363			—			363
Net increase (decrease) in cash and cash equivalents	—			3,862			18,866			—			22,728
Cash and cash equivalents
Beginning of period	—			36,884			72,365			—			109,249
End of period	$	—		$	40,746		$	91,231		$	—		$	131,977



Condensed consolidating statements of cash flows

	Three Months Ended March 31, 2015
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Cash flows from (used in) operating activities	$	1,628		$	33,735		$	13,124		$	—		$	48,487
Cash flows from investing activities
Acquisition of businesses, net of cash acquired	—			(60,836		)	—			—			(60,836		)
Capital expenditures for property and equipment	—			(7,626		)	(3,795		)	—			(11,421		)
Long-term loans and advances to affiliates	(41,979		)	12,997			—			28,982			—
Other	—			175			487			—			662
Net cash provided by (used in) investing activities	$	(41,979	)	$	(55,290	)	$	(3,308	)	$	28,982		$	(71,595	)
Cash flows from financing activities
Repayment of long-term debt	39,898			(207		)	(6		)	—			39,685
Long-term loans and advances to affiliates	—			41,979			(12,997		)	(28,982		)	—
Other	(5,001		)	—			—			—			(5,001		)
Net cash provided by (used in) financing activities	$	34,897		$	41,772		$	(13,003	)	$	(28,982	)	$	34,684
Effect of exchange rate changes on cash	—			—			(4,264		)	—			(4,264		)
Net increase (decrease) in cash and cash equivalents	(5,454		)	20,217			(7,451		)	—			7,312
Cash and cash equivalents
Beginning of period	5,551			4,006			67,022			—			76,579
End of period	$	97		$	24,223		$	59,571		$	—		$	83,891