SELECTED CONSOLIDATING FINANCIAL STATEMENTS OF PARENT, GUARANTORS AND NON-GUARANTORS

9 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

SELECTED CONSOLIDATING FINANCIAL STATEMENTS OF PARENT, GUARANTORS AND NON-GUARANTORS

SELECTED CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PARENT, GUARANTORS AND NON-GUARANTORS

The 2022 Notes, the 2024 Notes, and the 2025 Notes are fully and unconditionally guaranteed on a joint and several basis by the Guarantor Subsidiaries. The total assets, stockholders' equity, revenue, earnings and cash flows from operating activities of the Guarantor Subsidiaries exceeded a majority of the consolidated total of such items as of and for the periods reported. The only consolidated subsidiaries of the Company that are not guarantors of the 2022 Notes, the 2024 Notes, and the 2025 Notes (the “Non-Guarantor Subsidiaries”) are (a) the receivables securitization special-purpose entity and (b) the foreign operating subsidiaries. The following tables present condensed consolidating financial statements, including the Company (the “Parent”), the Guarantor Subsidiaries, and the Non-Guarantor Subsidiaries. Such financial statements include summary condensed consolidating balance sheets as of December 31, 2019 and March 31, 2019, condensed consolidating statements of comprehensive income for the three and nine months ended December 31, 2019 and 2018, and condensed consolidating statements of cash flows for the nine months ended December 31, 2019 and 2018.

SUMMARY CONDENSED CONSOLIDATING BALANCE SHEETS:

	December 31, 2019
	Parent			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries		Eliminations			Consolidated  Total
Current assets:
Cash and cash equivalents	$	19,319		$	—		$	34,275	$	—		$	53,594
Trade and other receivables, net	8,391			85,193			207,146		—			300,730
Contract assets	—			237,383			4,492		—			241,875
Inventory, net	—			393,159			80,704		—			473,863
Prepaid expenses and other	12,031			7,330			6,772		—			26,133
Total current assets	39,741			723,065			333,389		—			1,096,195
Property and equipment, net	10,227			343,902			79,346		—			433,475
Goodwill and other intangible assets, net	—			877,509			100,972		—			978,481
Other, net	27,536			59,031			30,668		—			117,235
Intercompany investments and advances	1,353,361			44,362			89,687		(1,487,410		)	—
Total assets	$	1,430,865		$	2,047,869		$	634,062	$	(1,487,410	)	$	2,625,386
Current liabilities:
Current portion of long-term debt	$	1,900		$	5,888		$	7	$	—		$	7,795
Accounts payable	5,301			343,977			30,711		—			379,989
Accrued expenses	52,940			411,624			30,964		—			495,528
Total current liabilities	60,141			761,489			61,682		—			883,312
Long-term debt, less current portion	1,319,259			6,616			75,018		—			1,400,893
Intercompany advances	562,434			1,827,108			262,188		(2,651,730		)	—
Accrued pension and other postretirement benefits, noncurrent	5,889			490,395			—		—			496,284
Deferred income taxes and other	16,039			331,845			29,910		—			377,794
Total stockholders’ (deficit) equity	(532,897		)	(1,369,584		)	205,264		1,164,320			(532,897		)
Total liabilities and stockholders’ (deficit) equity	$	1,430,865		$	2,047,869		$	634,062	$	(1,487,410	)	$	2,625,386

SUMMARY CONDENSED CONSOLIDATING BALANCE SHEETS:

	March 31, 2019
	Parent			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries		Eliminations			Consolidated  Total
Current assets:
Cash and cash equivalents	$	70,192		$	429		$	22,186	$	—		$	92,807
Trade and other receivables, net	10,150			123,153			240,287		—			373,590
Contract assets	—			322,698			3,969		—			326,667
Inventory, net	—			339,038			74,522		—			413,560
Prepaid expenses and other	22,152			7,611			4,683		—			34,446
Total current assets	102,494			792,929			345,647		—			1,241,070
Property and equipment, net	11,276			449,489			82,945		—			543,710
Goodwill and other intangible assets, net	—			912,279			101,900		—			1,014,179
Other, net	14,630			34,664			6,321		—			55,615
Intercompany investments and advances	1,112,100			230,437			88,697		(1,431,234		)	—
Total assets	$	1,240,500		$	2,419,798		$	625,510	$	(1,431,234	)	$	2,854,574
Current liabilities:
Current portion of long-term debt	$	1,904		$	6,297		$	—	$	—		$	8,201
Accounts payable	6,571			396,542			30,670		—			433,783
Accrued expenses	58,301			445,542			29,448		—			533,291
Total current liabilities	66,776			848,381			60,118		—			975,275
Long-term debt, less current portion	1,469,543			11,077			—		—			1,480,620
Intercompany advances	262,718			2,017,003			372,888		(2,652,609		)	—
Accrued pension and other postretirement benefits, noncurrent	6,067			534,412			—		—			540,479
Deferred income taxes and other	8,709			408,838			13,966		—			431,513
Total stockholders’ (deficit) equity	(573,313		)	(1,399,913		)	178,538		1,221,375			(573,313		)
Total liabilities and stockholders’ (deficit) equity	$	1,240,500		$	2,419,798		$	625,510	$	(1,431,234	)	$	2,854,574

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME:

	For the Three Months Ended December 31, 2019
	Parent			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries			Eliminations			Consolidated  Total
Net sales	$	—		$	646,198		$	79,869		$	(21,401	)	$	704,666
Operating costs and expenses:
Cost of sales	—			505,420			62,263			(21,401		)	546,282
Selling, general and administrative	16,785			42,854			6,335			—			65,974
Depreciation and amortization	847			26,089			2,907			—			29,843
Restructuring costs	—			4,744			—			—			4,744
Loss on sale of assets and businesses, net	60,019			—			—			—			60,019
Legal judgment gain, net	(3,857		)	—			—			—			(3,857		)
	73,794			579,107			71,505			(21,401		)	703,005
Operating (loss) income	(73,794		)	67,091			8,364			—			1,661
Intercompany interest and charges	(33,662		)	32,005			1,657			—			—
Non-service defined benefit income	—			(13,485		)	(504		)	—			(13,989		)
Interest expense and other, net	26,362			5,871			945			—			33,178
(Loss) income before income taxes	(66,494		)	42,700			6,266			—			(17,528		)
Income tax (benefit) expense	(15,067		)	10,319			1,066			—			(3,682		)
Net (loss) income	(51,427		)	32,381			5,200			—			(13,846		)
Other comprehensive loss	4,501			4,617			11,484			—			20,602
Total comprehensive (loss) income	$	(46,926	)	$	36,998		$	16,684		$	—		$	6,756

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME:

	For the Three Months Ended December 31, 2018
	Parent			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries			Eliminations			Consolidated  Total
Net sales	$	—		$	735,753		$	91,528		$	(19,386	)	$	807,895
Operating costs and expenses:
Cost of sales	—			660,002			72,658			(19,386		)	713,274
Selling, general and administrative	17,720			46,033			8,070			—			71,823
Depreciation and amortization	744			32,640			4,020			—			37,404
Restructuring costs	—			2,327			—			—			2,327
	18,464			741,002			84,748			(19,386		)	824,828
Operating (loss) income	(18,464		)	(5,249		)	6,780			—			(16,933		)
Intercompany interest and charges	(39,513		)	37,484			2,029			—			—
Non-service defined benefit income	—			(16,188		)	(332		)	—			(16,520		)
Interest expense and other, net	25,476			4,007			(174		)	—			29,309
(Loss) income before income taxes	(4,427		)	(30,552		)	5,257			—			(29,722		)
Income tax (benefit) expense	(14,248		)	14,325			1,146			—			1,223
Net income (loss)	9,821			(44,877		)	4,111			—			(30,945		)
Other comprehensive loss	(279		)	(174		)	(7,951		)	—			(8,404		)
Total comprehensive income (loss)	$	9,542		$	(45,051	)	$	(3,840	)	$	—		$	(39,349	)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME:

	For the Nine Months Ended December 31, 2019
	Parent			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries			Eliminations			Consolidated  Total
Net sales	$	—		$	2,027,649		$	243,361		$	(64,003	)	$	2,207,007
Operating costs and expenses:
Cost of sales	—			1,625,567			189,187			(64,003		)	1,750,751
Selling, general and administrative	50,340			123,664			20,508			—			194,512
Depreciation and amortization	2,532			93,109			8,471			—			104,112
Restructuring costs	540			12,950			—			—			13,490
Legal judgment gain, net of expenses	(9,257		)	—			—			—			(9,257		)
Loss (gain) on sale of assets and businesses, net	65,311			(10,121		)	—			—			55,190
	109,466			1,845,169			218,166			(64,003		)	2,108,798
Operating (loss) income	(109,466		)	182,480			25,195			—			98,209
Intercompany interest and charges	(103,245		)	98,297			4,948			—			—
Non-service defined benefit income	—			(55,788		)	(1,492		)	—			(57,280		)
Interest expense and other, net	80,016			17,423			(1,370		)	—			96,069
(Loss) income before income taxes	(86,237		)	122,548			23,109			—			59,420
Income tax (benefit) expense	(20,635		)	30,398			2,714			—			12,477
Net (loss) income	(65,602		)	92,150			20,395			—			46,943
Other comprehensive income (loss)	3,105			(62,995		)	2,275			—			(57,615		)
Total comprehensive (loss) income	$	(62,497	)	$	29,155		$	22,670		$	—		$	(10,672	)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME:

	For the Nine Months Ended December 31, 2018
	Parent			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries			Eliminations			Consolidated  Total
Net sales	$	—		$	2,286,932		$	268,808		$	(59,837	)	$	2,495,903
Operating costs and expenses:
Cost of sales	—			2,052,427			215,372			(59,837		)	2,207,962
Selling, general and administrative	57,210			140,892			24,929			—			223,031
Depreciation and amortization	2,200			99,302			12,847			—			114,349
Restructuring costs	2,766			15,440			—			—			18,206
Loss on sale of assets and businesses, net	16,890			947			—			—			17,837
	79,066			2,309,008			253,148			(59,837		)	2,581,385
Operating (loss) income	(79,066		)	(22,076		)	15,660			—			(85,482		)
Intercompany interest and charges	(118,352		)	112,281			6,071			—			—
Non-service defined benefit income	—			(48,562		)	(1,019		)	—			(49,581		)
Interest expense and other, net	73,855			13,334			(3,674		)	—			83,515
(Loss) income before income taxes	(34,569		)	(99,129		)	14,282			—			(119,416		)
Income tax expense (benefit)	16,297			(15,761		)	2,203			—			2,739
Net (loss) income	(50,866		)	(83,368		)	12,079			—			(122,155		)
Other comprehensive loss	(349		)	(609		)	(21,801		)	—			(22,759		)
Total comprehensive loss	$	(51,215	)	$	(83,977	)	$	(9,722	)	$	—		$	(144,914	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS:

	For the Nine Months Ended December 31, 2019
	Parent			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries			Eliminations		Consolidated  Total
Net (loss) income	$	(65,602	)	$	92,150		$	20,395		$	—	$	46,943
Adjustments to reconcile net income to net cash (used in) provided by operating activities	(35,640		)	(2,285		)	30,270			—		(7,655		)
Net cash (used in) provided by operating activities	(101,242		)	89,865			50,665			—		39,288
Capital expenditures	(980		)	(22,874		)	(3,396		)	—		(27,250		)
Proceeds from sale of assets	44,414			5,155			387			—		49,956
Net cash used in investing activities	43,434			(17,719		)	(3,009		)	—		22,706
Net increase in revolving credit facility	(215,000		)	—			—			—		(215,000		)
Proceeds on issuance of debt	525,000			—			45,980			—		570,980
Retirements and repayments of debt	(376,665		)	(4,852		)	(51,680		)	—		(433,197		)
Payments of deferred financing costs	(17,545		)	—			—			—		(17,545		)
Dividends paid	(6,005		)	—			—			—		(6,005		)
Repurchase of restricted shares for minimum tax obligation	(1,179		)	—			—			—		(1,179		)
Intercompany financing and advances	98,329			(67,723		)	(30,606		)	—		—
Net cash provided by (used in) financing activities	6,935			(72,575		)	(36,306		)	—		(101,946		)
Effect of exchange rate changes on cash	—			—			739			—		739
Net change in cash and cash equivalents	(50,873		)	(429		)	12,089			—		(39,213		)
Cash and cash equivalents at beginning of period	70,192			429			22,186			—		92,807
Cash and cash equivalents at end of period	$	19,319		$	—		$	34,275		$	—	$	53,594

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS:

	For the Nine Months Ended December 31, 2018
	Parent			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries			Eliminations			Consolidated  Total
Net (loss) income	$	(50,866	)	$	(83,368	)	$	12,079		$	—		$	(122,155	)
Adjustments to reconcile net income to net cash (used in) provided by operating activities	38,356			(154,793		)	27,597			17,879			(70,961		)
Net cash (used in) provided by operating activities	(12,510		)	(238,161		)	39,676			17,879			(193,116		)
Capital expenditures	(628		)	(30,398		)	(3,798		)	—			(34,824		)
Proceeds from sale of assets	—			40,235			1,182			—			41,417
Net cash (used in) provided by investing activities	(628		)	9,837			(2,616		)	—			6,593
Net increase in revolving credit facility	218,066			—			—			—			218,066
Proceeds on issuance of debt	—			—			45,000			—			45,000
Retirements and repayments of debt	(1,091		)	(15,120		)	(56,800		)	—			(73,011		)
Payments of deferred financing costs	(1,941		)	—			—			—			(1,941		)
Dividends paid	(5,975		)	—			—			—			(5,975		)
Repurchase of restricted shares for minimum tax obligations	(645		)	—			—			—			(645		)
Intercompany financing and advances	(195,320		)	243,505			(30,306		)	(17,879		)	—
Net cash provided by (used in) financing activities	13,094			228,385			(42,106		)	(17,879		)	181,494
Effect of exchange rate changes on cash	—			—			(2,126		)	—			(2,126		)
Net change in cash and cash equivalents	(44		)	61			(7,172		)	—			(7,155		)
Cash and cash equivalents at beginning of period	44			—			35,775			—			35,819
Cash and cash equivalents at end of period	$	—		$	61		$	28,603		$	—		$	28,664