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 (loss)

	December 31, 2016
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Net sales	$	—		$	436,785		$	198,684		$	(47,834	)	$	587,635
Cost of sales	—			375,509			161,190			(48,799		)	487,900
Gross profit	—			61,276			37,494			965			99,735
Operating expenses
Selling, general and administrative expenses	—			187,974			39,034			—			227,008
Transaction expenses	—			825			40			—			865
Loss on sale of assets	—			2,616			22			—			2,638
Total operating expenses	—			191,415			39,096			—			230,511
Earnings (loss) from equity investment	—			1,824			—			—			1,824
Equity earnings from affiliate, net of tax	(62,180		)	14,663			—			47,517			—
Operating income (loss)	(62,180		)	(113,652		)	(1,602		)	48,482			(128,952		)
Other expense (income)
Interest expense	27,480			(110		)	40			—			27,410
Foreign exchange (gains) losses and other, net	—			(5,264		)	(16,077		)	—			(21,341		)
Deferred loan costs written off	2,978			—			—			—			2,978
Total other expense (income)	30,458			(5,374		)	(16,037		)	—			9,047
Income (loss) before income taxes	(92,638		)	(108,278		)	14,435			48,482			(137,999		)
Provision for income tax expense (benefit)	(10,660		)	(46,098		)	707			—			(56,051		)
Net income (loss)	(81,978		)	(62,180		)	13,728			48,482			(81,948		)
Less: Loss attributable to noncontrolling interest	—			—			30			—			30
Net income (loss) attributable to common stockholders	(81,978		)	(62,180		)	13,698			48,482			(81,978		)

Other comprehensive income (loss), net of tax:
Net income (loss)	(81,978		)	(62,180		)	13,728			48,482			(81,948		)
Change in foreign currency translation, net of tax of $0	(45,722		)	(45,722		)	(45,722		)	91,444			(45,722		)
Change in pension liability	(335		)	(335		)	(335		)	670			(335		)
Comprehensive income (loss)	(128,035		)	(108,237		)	(32,329		)	140,596			(128,005		)
Less: comprehensive (income) loss attributable to noncontrolling interests	—			—			(162		)	—			(162		)
Comprehensive income (loss) attributable to common stockholders	$	(128,035	)	$	(108,237	)	$	(32,491	)	$	140,596		$	(128,167	)



Condensed consolidating statements of operations and comprehensive income (loss)

	December 31, 2015
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Net sales	$	—		$	810,890		$	369,186		$	(106,424	)	$	1,073,652
Cost of sales	—			646,076			269,900			(105,001		)	810,975
Gross profit	—			164,814			99,286			(1,423		)	262,677
Operating expenses
Selling, general and administrative expenses	—			201,904			63,002			—			264,906
Goodwill and intangible assets impairment	—			57,392			67,700			—			125,092
Transaction expenses	—			480			—			—			480
(Gain) loss on sale of assets	—			943			(197		)	—			746
Total operating expenses	—			260,719			130,505			—			391,224
Earnings from equity investment	—			14,824			—			—			14,824
Equity earnings from affiliate, net of tax	(99,908		)	(28,419		)	—			128,327			—
Operating income (loss)	(99,908		)	(109,500		)	(31,219		)	126,904			(113,723		)
Other expense (income)
Interest expense	29,914			10			21			—			29,945
Foreign exchange (gains) losses and other, net	—			(479		)	(8,866		)	—			(9,345		)
Total other expense (income)	29,914			(469		)	(8,845		)	—			20,600
Income (loss) before income taxes	(129,822		)	(109,031		)	(22,374		)	126,904			(134,323		)
Provision (benefit) for income tax expense	(10,469		)	(9,123		)	4,653			—			(14,939		)
Net income (loss)	(119,353		)	(99,908		)	(27,027		)	126,904			(119,384		)
Less: Loss attributable to noncontrolling interest	—			—			(31		)	—			(31		)
Net income (loss) attributable to common stockholders	(119,353		)	(99,908		)	(26,996		)	126,904			(119,353		)

Other comprehensive income (loss), net of tax:
Net income (loss)	(119,353		)	(99,908		)	(27,027		)	126,904			(119,384		)
Change in foreign currency translation, net of tax of $0	(45,270		)	(45,270		)	(45,270		)	90,540			(45,270		)
Change in pension liability	46			46			46			(92		)	46
Comprehensive income (loss)	(164,577		)	(145,132		)	(72,251		)	217,352			(164,608		)
Less: comprehensive (income) loss attributable to noncontrolling interests	—			—			168			—			168
Comprehensive income (loss) attributable to common stockholders	$	(164,577	)	$	(145,132	)	$	(72,083	)	$	217,352		$	(164,440	)



Condensed consolidating statements of operations and comprehensive income

	December 31, 2014
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Net sales	$	—		$	1,266,376		$	637,205		$	(163,864	)	$	1,739,717
Cost of sales	—			887,428			453,785			(160,948		)	1,180,265
Gross profit	—			378,948			183,420			(2,916		)	559,452
Operating expenses
Selling, general and administrative expenses	—			244,577			68,244			—			312,821
Other operating expense	—			3,564			193			—			3,757
Total operating expenses	—			248,141			68,437			—			316,578
Earnings (loss) from equity investment	—			25,164			—			—			25,164
Equity earnings from affiliate, net of tax	193,724			90,067			—			(283,791		)	—
Operating income	193,724			246,038			114,983			(286,707		)	268,038
Other expense (income)
Interest expense	29,783			78			(14		)	—			29,847
Interest income with affiliate	—			(5,770		)	—			5,770			—
Interest expense with affiliate	—			—			5,770			(5,770		)	—
Foreign exchange (gains) losses and other, net	—			116			(4,447		)	—			(4,331		)
Total other expense (income)	29,783			(5,576		)	1,309			—			25,516
Income before income taxes	163,941			251,614			113,674			(286,707		)	242,522
Provision for income tax expense	(10,424		)	57,890			20,679			—			68,145
Net income	174,365			193,724			92,995			(286,707		)	174,377
Less: Income attributable to noncontrolling interest	—			—			12			—			12
Net income attributable to common stockholders	174,365			193,724			92,983			(286,707		)	174,365

Other comprehensive income, net of tax:
Net income	174,365			193,724			92,995			(286,707		)	174,377
Change in foreign currency translation, net of tax of $0	(43,694		)	(43,694		)	(43,694		)	87,388			(43,694		)
Change in pension liability	(1,110		)	(1,110		)	(1,110		)	2,220			(1,110		)
Comprehensive income	129,561			148,920			48,191			(197,099		)	129,573
Less: comprehensive (income) loss attributable to noncontrolling interests	—			—			46			—			46
Comprehensive income attributable to common stockholders	$	129,561		$	148,920		$	48,237		$	(197,099	)	$	129,619



Condensed consolidating balance sheets

	December 31, 2016
	FET (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
					(in thousands)
Assets
Current assets
Cash and cash equivalents	$	65	$	143,275	$	91,082	$	—		$	234,422
Accounts receivable—trade, net	—		77,229		28,039		—			105,268
Inventories	—		269,036		77,987		(8,440		)	338,583
Income tax receivable	—		32,801		—		—			32,801
Cost and profits in excess of billings	—		4,477		4,722		—			9,199
Other current assets	—		21,013		8,430		—			29,443
Total current assets	65		547,831		210,260		(8,440		)	749,716
Property and equipment, net of accumulated depreciation	—		127,094		25,118		—			152,212
Deferred financing costs, net	1,112		—		—		—			1,112
Deferred income taxes, net	—		—		851		—			851
Intangibles	—		166,437		49,981		—			216,418
Goodwill	—		481,374		171,369		—			652,743
Investment in unconsolidated subsidiary	—		59,140		—		—			59,140
Investment in affiliates	1,080,337		460,166		—		(1,540,503		)	—
Long-term loan and advances to affiliates	557,061		—		71,057		(628,118		)	—
Other long-term assets	—		2,322		678		—			3,000
Total assets	$	1,638,575	$	1,844,364	$	529,314	$	(2,177,061	)	$	1,835,192
Liabilities and equity
Current liabilities
Current portion of long-term debt	$	—	$	23	$	101	$	—		$	124
Accounts payable—trade	—		59,261		14,514		—			73,775
Accrued liabilities	6,708		40,630		8,266		—			55,604
Deferred revenue	—		1,206		7,132		—			8,338
Billings in excess of costs and profits recognized	—		1,799		2,205		—			4,004
Total current liabilities	6,708		102,919		32,218		—			141,845
Long-term debt, net of current portion	396,665		—		82		—			396,747
Long-term loans and payables to affiliates	—		628,118		—		(628,118		)	—
Deferred income taxes, net	—		17,650		8,535		—			26,185
Other long-term liabilities	—		15,340		19,314		—			34,654
Total liabilities	403,373		764,027		60,149		(628,118		)	599,431

Total stockholder's equity	1,235,202		1,080,337		468,606		(1,548,943		)	1,235,202
Noncontrolling interest in subsidiary	—		—		559		—			559
Equity	1,235,202		1,080,337		469,165		(1,548,943		)	1,235,761
Total liabilities and equity	$	1,638,575	$	1,844,364	$	529,314	$	(2,177,061	)	$	1,835,192



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	7,026		40,875		10,662		—			58,563
Deferred revenue	—		1,334		5,949		—			7,283
Billings in excess of cost and profit recognized	—		1,872		6,759		—			$	8,631
Total current liabilities	7,026		101,853		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 tax, net	$	—	$	36,937	$	14,163	$	—		51,100
Other long-term liabilities	—		14,533		15,423		—			29,956
Total liabilities	402,996		680,763		72,272		(527,406		)	628,625

Total stockholder's equity	1,257,020		1,188,706		524,297		(1,713,003		)	1,257,020
Noncontrolling interest in subsidiary	—		—		397		—			397
Equity	1,257,020		1,188,706		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

	Year ended December 31, 2016
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Cash flows from (used in) operating activities	$	(16,882	)	$	31,055		$	73,772		$	(23,203	)	$	64,742
Cash flows from investing activities
Acquisition of businesses, net of cash acquired	—			(4,072		)	—			—			(4,072		)
Capital expenditures for property and equipment	—			(12,033		)	(4,795		)	—			(16,828		)
Long-term loans and advances to affiliates	(69,340		)	12,912			—			56,428			—
Other	—			9,442			321			—			9,763
Net cash provided by (used in) investing activities	(69,340		)	6,249			(4,474		)	56,428			(11,137		)
Cash flows from financing activities
Borrowings under credit facility	—			—			—			—			—
Repayment of long-term debt	—			—			—			—			—
Long-term loans and advances to affiliates	—			69,340			(12,912		)	(56,428		)	—
Dividend paid to affiliates	—			—			(23,203		)	23,203			—
Repurchases of stock	(623		)	—			—			—			(623		)
Proceeds from stock issuance	87,676			—			—			—			87,676
Other	(766		)	(253		)	161			—			(858		)
Net cash provided by (used in) financing activities	86,287			69,087			(35,954		)	(33,225		)	86,195
Effect of exchange rate changes on cash	—			—			(14,627		)	—			(14,627		)
Net increase (decrease) in cash and cash equivalents	65			106,391			18,717			—			125,173
Cash and cash equivalents
Beginning of period	—			36,884			72,365			—			109,249
End of period	$	65		$	143,275		$	91,082		$	—		$	234,422



Condensed consolidating statements of cash flows

	Year ended December 31, 2015
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Cash flows from (used in) operating activities	$	(17,306	)	$	112,629		$	60,590		$	—		$	155,913
Cash flows from investing activities
Acquisition of businesses, net of cash acquired	—			(60,836		)	—			—			(60,836		)
Capital expenditures for property and equipment	—			(23,035		)	(9,256		)	—			(32,291		)
Long-term loans and advances to affiliates	38,019			41,755			—			(79,774		)	—
Other	—			1,057			764			—			1,821
Net cash provided by (used in) investing activities	38,019			(41,059		)	(8,492		)	(79,774		)	(91,306		)
Cash flows from financing activities
Borrowings under credit facility	94,984			—			—			—			94,984
Repayment of long-term debt	(120,077		)	—			—			—			(120,077		)
Long-term loans and advances to affiliates	—			(38,019		)	(41,755		)	79,774			—
Repurchases of stock	(6,438		)	—			—			—			(6,438		)
Proceeds from stock issuance	5,275			—			—			—			5,275
Other	(8		)	(673		)	—			—			(681		)
Net cash provided by (used in) financing activities	(26,264		)	(38,692		)	(41,755		)	79,774			(26,937		)
Effect of exchange rate changes on cash	—			—			(5,000		)	—			(5,000		)
Net increase (decrease) in cash and cash equivalents	(5,551		)	32,878			5,343			—			32,670
Cash and cash equivalents
Beginning of period	5,551			4,006			67,022			—			76,579
End of period	$	—		$	36,884		$	72,365		$	—		$	109,249



Condensed consolidating statements of cash flows

	Year ended December 31, 2014
	FET (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
							(in thousands)
Cash flows from (used in) operating activities	$	(16,796	)	$	175,700		$	111,062		$	—		$	269,966
Cash flows from investing activities
Acquisition of businesses, net of cash acquired	—			—			(38,289		)	—			(38,289		)
Capital expenditures for property and equipment	—			(42,334		)	(11,458		)	—			(53,792		)
Long-term loans and advances to affiliates	191,290			34,010			—			(225,300		)	—
Other	—			20,862			528			—			21,390
Net cash provided by (used in) investing activities	191,290			12,538			(49,219		)	(225,300		)	(70,691		)
Cash flows from financing activities
Borrowings under credit facility	15,000			423			—			—			15,423
Repayment of long-term debt	(98,406		)	124			(133		)	—			(98,415		)
Long-term loans and advances to affiliates	—			(191,290		)	(34,010		)	225,300			—
Repurchase of stock	(96,632		)	—			—			—			(96,632		)
Proceeds from stock issuance	11,101			—			—			—			11,101
Other	(6		)	6,511			—			—			6,505
Net cash provided by (used in) financing activities	(168,943		)	(184,232		)	(34,143		)	225,300			(162,018		)
Effect of exchange rate changes on cash	—			—			(260		)	—			(260		)
Net increase (decrease) in cash and cash equivalents	5,551			4,006			27,440			—			36,997
Cash and cash equivalents
Beginning of period	—			—			39,582			—			39,582
End of period	$	5,551		$	4,006		$	67,022		$	—		$	76,579