(24) Guarantor Condensed Consolidating Financial Information

The outstanding balances of the Senior Credit Facilities and Registered Notes, entered into and issued on October 20, 2014, are guaranteed by all of the Company’s existing and future domestic subsidiaries (“Guarantor Subsidiaries”). All of the Guarantor Subsidiaries are 100% owned by Metaldyne Performance Group Inc. (“Parent”) and Holdco (“Issuer”). The guarantee is full, unconditional, joint and several. The Company’s non-domestic subsidiaries have not guaranteed the Senior Credit Facilities or the Registered Notes (“Non-Guarantor Subsidiaries”).

The accompanying supplemental condensed, consolidating financial information is presented using the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the Company’s share in the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions.

Condensed Consolidating Balance Sheet

December 31, 2016

(In millions)

	Parent		Issuer		Guarantor		Non-Guarantor		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		83.8		0.9		125.0		—			209.7
Receivables, net:
Trade		—		—		231.5		83.6		(0.5	)		314.6
Other		—		—		92.7		20.6		(78.5	)		34.8
Total receivables, net		—		—		324.2		104.2		(79.0	)		349.4
Inventories		—		—		118.1		50.3		—			168.4
Prepaid expenses		—		1.7		7.8		2.0		—			11.5
Other assets		20.8		—		15.3		16.6		—			52.7
Total current assets		20.8		85.5		466.3		298.1		(79.0	)		791.7
Property and equipment, net		—		3.1		567.2		261.3		—			831.6
Goodwill		—		—		673.2		234.5		—			907.7
Amortizable intangible assets, net		—		—		506.8		132.3		—			639.1
Deferred income taxes		14.2		—		—		7.4		(14.2	)		7.4
Other assets		—		2.0		10.3		0.7		—			13.0
Intercompany receivables		93.4		1,618.2		—		8.3		(1,719.9	)		—
Investment in subsidiaries		685.6		826.9		696.7		—		(2,209.2	)		—
Total assets	$	814.0		2,535.7		2,920.5		942.6		(4,022.3	)		3,190.5
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	—		1.2		169.4		127.8		(37.9	)		260.5
Accrued compensation		—		3.2		34.3		12.1		—			49.6
Accrued liabilities		0.8		20.7		32.1		63.5		(40.0	)		77.1
Short-term debt		—		—		—		2.1		(1.1	)		1.0
Current maturities, long-term debt and capital lease obligations		—		13.1		—		0.1		—			13.2
Total current liabilities		0.8		38.2		235.8		205.6		(79.0	)		401.4
Long-term debt, less current maturities		—		1,809.2		—		—		—			1,809.2
Capital lease obligations		—		—		22.7		—		—			22.7
Deferred income taxes		—		2.0		228.2		7.7		(14.2	)		223.7
Other long-term liabilities		—		0.7		24.4		29.2		—			54.3
Intercompany payables		137.4		—		1,582.5		—		(1,719.9	)		—
Total liabilities		138.2		1,850.1		2,093.6		242.5		(1,813.1	)		2,511.3
Stockholders’ equity:
Total equity attributable to stockholders		675.8		685.6		826.9		696.7		(2,209.2	)		675.8
Noncontrolling interest		—		—		—		3.4		—			3.4
Total stockholders’ equity		675.8		685.6		826.9		700.1		(2,209.2	)		679.2
Total liabilities and stockholders’ equity	$	814.0		2,535.7		2,920.5		942.6		(4,022.3	)		3,190.5

Condensed Consolidating Balance Sheet

December 31, 2015

(In millions)

	Parent		Issuer		Guarantor		Non- Guarantor		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		50.5		10.8		106.9		—			168.2
Receivables, net:
Trade		—		—		242.4		67.7		(1.0	)		309.1
Other		0.1		—		70.9		19.8		(55.4	)		35.4
Total receivables, net		0.1		—		313.3		87.5		(56.4	)		344.5
Inventories		—		—		139.1		47.7		—			186.8
Prepaid expenses		—		3.2		7.4		4.4		—			15.0
Other assets		5.3		—		8.6		7.6		—			21.5
Total current assets		5.4		53.7		479.2		254.1		(56.4	)		736.0
Property and equipment, net		—		2.0		546.3		237.7		—			786.0
Goodwill		—		—		673.2		234.5		—			907.7
Amortizable intangible assets, net		—		—		561.7		147.2		—			708.9
Deferred income taxes		14.2		—		—		1.7		(14.2	)		1.7
Other assets		—		2.8		14.2		0.3		—			17.3
Intercompany receivables		56.2		1,734.6		—		5.0		(1,795.8	)		—
Investment in subsidiaries		619.0		695.9		673.8		—		(1,988.7	)		—
Total assets	$	694.8		2,489.0		2,948.4		880.5		(3,855.1	)		3,157.6
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	—		1.0		165.7		105.0		(22.8	)		248.9
Accrued compensation		—		4.4		38.5		12.3		—			55.2
Accrued liabilities		0.5		19.1		27.2		53.6		(33.6	)		66.8
Short-term debt		—		—		—		0.7		—			0.7
Current maturities, long-term debt and capital lease obligations		—		13.2		1.1		0.2		—			14.5
Total current liabilities		0.5		37.7		232.5		171.8		(56.4	)		386.1
Long-term debt, less current maturities		—		1,826.9		—		0.2		—			1,827.1
Capital lease obligations		—		—		22.5		—		—			22.5
Deferred income taxes		—		5.0		233.4		7.1		(14.2	)		231.3
Other long-term liabilities		—		0.4		26.5		24.7		—			51.6
Intercompany payables		58.2		—		1,737.6		—		(1,795.8	)		—
Total liabilities		58.7		1,870.0		2,252.5		203.8		(1,866.4	)		2,518.6
Stockholders’ equity:
Total equity attributable to stockholders		636.1		619.0		695.9		673.8		(1,988.7	)		636.1
Noncontrolling interest		—		—		—		2.9		—			2.9
Total stockholders’ equity		636.1		619.0		695.9		676.7		(1,988.7	)		639.0
Total liabilities and stockholders’ equity	$	694.8		2,489.0		2,948.4		880.5		(3,855.1	)		3,157.6

Condensed Consolidating Statements of Operations

(In millions)

For the Year Ended December 31, 2016	Parent			Issuer			Guarantor			Non-Guarantor		Eliminations			Consolidated
Net sales	$	—			—			2,182.5			752.4		(144.2	)		2,790.7
Cost of sales		—			—			1,838.6			627.1		(144.2	)		2,321.5
Gross profit		—			—			343.9			125.3		—			469.2
Selling, general and administrative expenses		—			—			197.5			44.8		—			242.3
Operating profit		—			—			146.4			80.5		—			226.9
Interest expense, net		—			98.7			(3.6	)		8.4		—			103.5
Other, net		(4.3	)		(8.3	)		(4.3	)		5.0		—			(11.9	)
Other expense, net		(4.3	)		90.4			(7.9	)		13.4		—			91.6
Income (loss) before tax		4.3			(90.4	)		154.3			67.1		—			135.3
Income tax expense (benefit)		1.1			(26.1	)		44.5			18.9		—			38.4
Income (loss) before from equity in subsidiaries		3.2			(64.3	)		109.8			48.2		—			96.9
Earnings from equity in subsidiaries		93.1			157.4			47.6			—		(298.1	)		—
Net income		96.3			93.1			157.4			48.2		(298.1	)		96.9
Income attributable to noncontrolling interest		—			—			—			0.6		—			0.6
Net income attributable to stockholders	$	96.3			93.1			157.4			47.6		(298.1	)		96.3

For the Year Ended December 31, 2015	Parent			Issuer			Guarantor			Non-Guarantor		Eliminations			Consolidated
Net sales	$	—			—			2,432.3			739.7		(124.7	)		3,047.3
Cost of sales		—			—			2,034.4			621.6		(124.7	)		2,531.3
Gross profit		—			—			397.9			118.1		—			516.0
Selling, general and administrative expenses		—			—			205.5			44.1		—			249.6
Operating profit		—			—			192.4			74.0		—			266.4
Interest expense, net		—			102.2			(4.2	)		9.5		—			107.5
Loss on debt extinguishment		—			0.4			—			—		—			0.4
Other, net		—			(8.2	)		(10.6	)		3.4		—			(15.4	)
Other expense, net		—			94.4			(14.8	)		12.9		—			92.5
Income (loss) before tax		—			(94.4	)		207.2			61.1		—			173.9
Income tax expense (benefit)		—			(30.9	)		56.2			22.8		—			48.1
Income (loss) before from equity in subsidiaries		—			(63.5	)		151.0			38.3		—			125.8
Earnings from equity in subsidiaries		125.4			188.9			37.9			—		(352.2	)		—
Net income		125.4			125.4			188.9			38.3		(352.2	)		125.8
Income attributable to noncontrolling interest		—			—			—			0.4		—			0.4
Net income attributable to stockholders	$	125.4			125.4			188.9			37.9		(352.2	)		125.4

Condensed Consolidating Statements of Operations

(In millions)

For the Year Ended December 31, 2014	Parent		Issuer			Guarantor			Non-Guarantor		Eliminations			Consolidated
Net sales	$	—		—			2,109.6			723.7		(116.3	)		2,717.0
Cost of sales		—		—			1,793.4			617.0		(116.3	)		2,294.1
Gross profit		—		—			316.2			106.7		—			422.9
Selling, general and administrative expenses		—		—			157.2			37.4		—			194.6
Goodwill impairment		—		—			11.8			—		—			11.8
Acquisition costs		—		—			13.0			—		—			13.0
Operating profit		—		—			134.2			69.3		—			203.5
Interest expense, net		—		22.3			67.4			10.2		—			99.9
Loss on debt extinguishment		—		—			60.7			—		—			60.7
Other, net		—		—			(16.3	)		5.0		—			(11.3	)
Other expense, net		—		22.3			111.8			15.2		—			149.3
Income (loss) before tax		—		(22.3	)		22.4			54.1		—			54.2
Income tax expense (benefit)		—		(8.8	)		(26.8	)		16.5		—			(19.1	)
Income (loss) before from equity in subsidiaries		—		(13.5	)		49.2			37.6		—			73.3
Earnings from equity in subsidiaries		72.9		86.4			37.2			—		(196.5	)		—
Net income		72.9		72.9			86.4			37.6		(196.5	)		73.3
Income attributable to noncontrolling interest		—		—			—			0.4		—			0.4
Net income attributable to stockholders		72.9		72.9			86.4			37.2		(196.5	)		72.9

Condensed Consolidating Statements of Comprehensive Income

(In millions)

	Parent			Issuer			Guarantor			Non-Guarantor			Eliminations			Consolidated
For the year ended December 31, 2016
Net income	$	96.3			93.1			157.4			48.2			(298.1	)		96.9
Other comprehensive loss, net of tax:
Foreign currency translation		(21.7	)		(22.0	)		(22.0	)		(20.3	)		64.3			(21.7	)
Net actuarial gain on defined benefit plans		(4.8	)		(4.8	)		(4.8	)		(4.3	)		13.9			(4.8	)
Losses on defined benefit plans recognized in net income		0.2			0.2			0.2			—			(0.4	)		0.2
Other comprehensive loss, net of tax		(26.3	)		(26.6	)		(26.6	)		(24.6	)		77.8			(26.3	)
Comprehensive income		70.0			66.5			130.8			23.6			(220.3	)		70.6
Less comprehensive income attributable to noncontrolling interest		—			—			—			0.5			—			0.5
Comprehensive income attributable to stockholders	$	70.0			66.5			130.8			23.1			(220.3	)		70.1
For the year ended December 31, 2015
Net income	$	125.4			125.4			188.9			38.3			(352.2	)		125.8
Other comprehensive loss, net of tax:
Foreign currency translation		(24.3	)		(25.0	)		(25.0	)		(21.8	)		71.8			(24.3	)
Net actuarial gain on defined benefit plans		1.8			1.8			1.8			1.1			(4.7	)		1.8
Losses on defined benefit plans recognized in net income		0.4			0.4			0.4			—			(0.8	)		0.4
Other comprehensive loss, net of tax		(22.1	)		(22.8	)		(22.8	)		(20.7	)		66.3			(22.1	)
Comprehensive income		103.3			102.6			166.1			17.6			(285.9	)		103.7
Less comprehensive income attributable to noncontrolling interest		—			—			—			0.4			—			0.4
Comprehensive income attributable to stockholders	$	103.3			102.6			166.1			17.2			(285.9	)		103.3
For the year ended December 31, 2014
Net income	$	72.9			72.9			86.4			37.6			(196.5	)		73.3
Other comprehensive loss, net of tax:
Foreign currency translation		(23.9	)		(23.5	)		(23.5	)		(22.2	)		69.2			(23.9	)
Net actuarial loss on defined benefit plans		(8.0	)		(8.0	)		(8.0	)		(4.7	)		20.7			(8.0	)
Other comprehensive loss, net of tax		(31.9	)		(31.5	)		(31.5	)		(26.9	)		89.9			(31.9	)
Comprehensive income		41.0			41.4			54.9			10.7			(106.6	)		41.4
Less comprehensive income attributable to noncontrolling interest		—			—			—			0.4			—			0.4
Comprehensive income attributable to stockholders		41.0			41.4			54.9			10.3			(106.6	)		41.0

Condensed Consolidating Statements of Cash Flows

(In millions)

	Parent			Issuer			Guarantor			Non-Guarantor			Eliminations			Consolidated
For the year ended December 31, 2016
Cash flows from operating activities:
Net cash provided by (used for) operating activities	$	5.6			(68.4	)		295.1			86.3			—			318.6
Cash flows from investing activities:
Capital expenditures		—			(1.6	)		(134.5	)		(58.4	)		—			(194.5	)
Proceeds from sale of fixed assets		—			—			0.1			0.4			—			0.5
Capitalized patent costs		—			—			(0.2	)		—			—			(0.2	)
Acquisition of business, net of cash acquired		—			—			(14.0	)		—			—			(14.0	)
Intercompany activity		42.0			116.5			—			—			(158.5	)		-
Net cash provided by (used for) investing activities		42.0			114.9			(148.6	)		(58.0	)		(158.5	)		(208.2	)
Cash flows from financing activities:
Dividends		(25.1	)		—			—			—			—			(25.1	)
Stock-based compensation activity, net		7.0			—			—			—			—			7.0
Purchases of treasury stock		(29.5	)		—			—			—			—			(29.5	)
Payments on long-term debt		—			(13.2	)		—			—			—			(13.2	)
Other debt, net		—			—			(1.3	)		(0.1	)		—			(1.4	)
Intercompany activity		—			—			(155.1	)		(3.4	)		158.5			—
Net cash provided by (used for) financing activities		(47.6	)		(13.2	)		(156.4	)		(3.5	)		158.5			(62.2	)
Effect of exchange rates		—			—			—			(6.7	)		—			(6.7	)
Net increase (decrease) in cash and cash equivalents	$	—			33.3			(9.9	)		18.1			—			41.5
Cash and cash equivalents:
Cash and cash equivalents, beginning of year		—			50.5			10.8			106.9			—			168.2
Net increase (decrease) in cash and cash equivalents		—			33.3			(9.9	)		18.1			—			41.5
Cash and cash equivalents, end of year	$	—			83.8			0.9			125.0			—			209.7
For the year ended December 31, 2015
Cash flows from operating activities:
Net cash provided by (used for) operating activities	$	8.6			(58.6	)		319.5			60.5			—			330.0
Cash flows from investing activities:
Capital expenditures		—			(2.0	)		(171.7	)		(52.6	)		—			(226.3	)
Proceeds from sale of fixed assets		—			—			3.8			0.2			—			4.0
Capitalized patent costs		—			—			(0.4	)		—			—			(0.4	)
Intercompany activity		8.3			134.2			—			—			(142.5	)		—
Net cash provided by (used for) investing activities		8.3			132.2			(168.3	)		(52.4	)		(142.5	)		(222.7	)
Cash flows from financing activities:
Dividends		(18.2	)		—			—			—			—			(18.2	)
Stock-based compensation activity, net		1.4			—			—			—			—			1.4
Borrowings of revolving lines of credit		—			14.3			—			—			—			14.3
Repayments of revolving lines of credit		—			(14.3	)		(0.3	)		—			—			(14.6	)
Proceeds from long-term debt		—			1,326.6			—			—			—			1,326.6
Payments on long-term debt		—			(1,391.6	)		(0.2	)		—			—			(1,391.8	)
Other debt, net		—			—			(3.0	)		(0.7	)		—			(3.7	)
Payment of debt issue costs		—			(0.1	)		—			—			—			(0.1	)
Payment of offering related costs		(0.1	)		—			—			—			—			(0.1	)
Intercompany activity		—			(10.2	)		(140.2	)		7.9			142.5			—
Net cash provided by (used for) financing activities		(16.9	)		(75.3	)		(143.7	)		7.2			142.5			(86.2	)
Effect of exchange rates		—			—			—			(9.4	)		—			(9.4	)
Net increase (decrease) in cash and cash equivalents	$	—			(1.7	)		7.5			5.9			—			11.7
Cash and cash equivalents:
Cash and cash equivalents, beginning of year	$	—			52.2			3.3			101.0			—			156.5
Net increase (decrease) in cash and cash equivalents		—			(1.7	)		7.5			5.9			—			11.7
Cash and cash equivalents, end of year	$	—			50.5			10.8			106.9			—			168.2

Condensed Consolidating Statements of Cash Flows (Continued)

(In millions)

	Parent			Issuer			Guarantor			Non-Guarantor			Eliminations			Consolidated
For the year ended December 31, 2014
Cash flows from operating activities:
Net cash provided by (used for) operating activities	$	12.0			2.7			205.5			85.2			—			305.4
Cash flows from investing activities:
Capital expenditures		—			—			(116.8	)		(39.6	)		—			(156.4	)
Proceeds from sale of fixed assets		—			—			0.5			0.9			—			1.4
Capitalized patent costs		—			—			(0.2	)		—			—			(0.2	)
Grede Transaction, net of cash acquired		—			—			(812.6	)		(17.1	)		—			(829.7	)
Intercompany activity		(6.4	)		(1,858.6	)		—			—			1,865.0			—
Net cash used for investing activities		(6.4	)		(1,858.6	)		(929.1	)		(55.8	)		1,865.0			(984.9	)
Cash flows from financing activities:
Cash dividends		—			—			(111.3	)		—			—			(111.3	)
Other stock activity		—			—			(2.4	)		—			—			(2.4	)
Proceeds from stock issuance		—			—			244.8			15.7			—			260.5
Borrowings of short-term debt		—			—			388.8			—			—			388.8
Repayments of short-term debt		—			—			(405.1	)		(2.3	)		—			(407.4	)
Proceeds of long-term debt		—			1,943.3			715.0			—			—			2,658.3
Principal payments of long-term debt		—			(10.0	)		(1,942.0	)		—			—			(1,952.0	)
Intercompany activity		—			—			1,865.0			—			(1,865.0	)		—
Payment of debt issue costs		—			(25.2	)		(20.2	)		—			—			(45.4	)
Other debt, net		—			—			(6.4	)		(0.4	)		—			(6.8	)
Payment of offering related costs		(5.6	)		—			—			—			—			(5.6	)
Net cash provided by (used for) financing activities		(5.6	)		1,908.1			726.2			13.0			(1,865.0	)		776.7
Effect of exchange rates		—			—			—			(8.9	)		—			(8.9	)
Net increase in cash and cash equivalents	$	—			52.2			2.6			33.5			—			88.3
Cash and cash equivalents:
Cash and cash equivalents, beginning of year	$	—			—			0.7			67.5			—			68.2
Net increase in cash and cash equivalents		—			52.2			2.6			33.5			—			88.3
Cash and cash equivalents, end of year	$	—			52.2			3.3			101.0			—			156.5