Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract]

Supplemental Guarantor Consolidating Income Statement [Table Text Block]

Condensed Consolidating Statements of Income
Three Months Ended June 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2019
Net sales
External	$	—		$	223.9		$	516.9		$	963.5		$	—		$	1,704.3
Intercompany	—			0.3			74.1			10.1			(84.5		)	—
Total net sales	—			224.2			591.0			973.6			(84.5		)	1,704.3
Cost of goods sold	—			226.6			532.3			781.6			(84.5		)	1,456.0
Gross profit (loss)	—			(2.4		)	58.7			192.0			—			248.3
Selling, general and administrative expenses	—			70.5			7.6			13.2			—			91.3
Amortization of intangible assets	—			1.4			22.6			0.9			—			24.9
Restructuring and acquisition-related costs	—			4.6			4.7			2.9			—			12.2
Operating income (loss)	—			(78.9		)	23.8			175.0			—			119.9
Non-operating income (expense), net	—			(62.5		)	1.8			(0.5		)	—			(61.2		)
Income (loss) before income taxes	—			(141.4		)	25.6			174.5			—			58.7
Income tax expense (benefit)	—			1.4			(0.2		)	4.8			—			6.0
Earnings from equity in subsidiaries	52.5			57.3			32.9			—			(142.7		)	—
Net income (loss) before royalties	52.5			(85.5		)	58.7			169.7			(142.7		)	52.7
Royalties	—			84.8			0.7			(85.5		)	—			—
Net income (loss) after royalties	52.5			(0.7		)	59.4			84.2			(142.7		)	52.7
Net income attributable to noncontrolling interests	—			—			—			(0.2		)	—			(0.2		)
Net income (loss) attributable to AAM	$	52.5		$	(0.7	)	$	59.4		$	84.0		$	(142.7	)	$	52.5
Other comprehensive income (loss), net of tax	(9.8		)	(14.8		)	5.6			8.7			0.5			(9.8		)
Comprehensive income (loss) attributable to AAM	$	42.7		$	(15.5	)	$	65.0		$	92.7		$	(142.2	)	$	42.7

	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2018
Net sales
External	$	—		$	302.8		$	572.6		$	1,025.5		$	—		$	1,900.9
Intercompany	—			2.3			78.0			10.8			(91.1		)	—
Total net sales	—			305.1			650.6			1,036.3			(91.1		)	1,900.9
Cost of goods sold	—			305.7			542.3			812.6			(91.1		)	1,569.5
Gross profit (loss)	—			(0.6		)	108.3			223.7			—			331.4
Selling, general and administrative expenses	—			60.2			19.9			14.9			—			95.0
Amortization of intangible assets	—			1.4			22.5			0.9			—			24.8
Restructuring and acquisition-related costs	—			9.8			26.8			0.2			—			36.8
Gain on sale of business	—			—			(15.5		)	—			—			(15.5		)
Operating income (loss)	—			(72.0		)	54.6			207.7			—			190.3
Non-operating income (expense), net	—			(63.3		)	3.2			23.1			—			(37.0		)
Income (loss) before income taxes	—			(135.3		)	57.8			230.8			—			153.3
Income tax expense (benefit)	—			8.0			0.1			(6.1		)	—			2.0
Earnings from equity in subsidiaries	151.1			106.3			67.3			—			(324.7		)	—
Net income (loss) before royalties	151.1			(37.0		)	125.0			236.9			(324.7		)	151.3
Royalties	—			85.0			0.9			(85.9		)	—			—
Net income after royalties	151.1			48.0			125.9			151.0			(324.7		)	151.3
Net income attributable to noncontrolling interests	—			—			—			(0.2		)	—			(0.2		)
Net income attributable to AAM	$	151.1		$	48.0		$	125.9		$	150.8		$	(324.7	)	$	151.1
Other comprehensive loss, net of tax	(76.7		)	(29.2		)	(75.3		)	(81.0		)	185.5			(76.7		)
Comprehensive income attributable to AAM	$	74.4		$	18.8		$	50.6		$	69.8		$	(139.2	)	$	74.4

Condensed Consolidating Statements of Income
Six Months Ended June 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Elims			Consolidated
2019
Net sales
External	$	—		$	506.1		$	1,055.3	$	1,862.1		$	—		$	3,423.5
Intercompany	—			1.0			142.8		20.7			(164.5		)	—
Total net sales	—			507.1			1,198.1		1,882.8			(164.5		)	3,423.5
Cost of goods sold	—			499.9			1,082.6		1,535.0			(164.5		)	2,953.0
Gross profit	—			7.2			115.5		347.8			—			470.5
Selling, general and administrative expenses	—			140.0			15.6		26.4			—			182.0
Amortization of intangible assets	—			2.9			45.2		1.8			—			49.9
Restructuring and acquisition-related costs	—			10.9			8.2		5.2			—			24.3
Operating income (loss)	—			(146.6		)	46.5		314.4			—			214.3
Non-operating income (expense), net	—			(121.3		)	4.7		(0.3		)	—			(116.9		)
Income (loss) before income taxes	—			(267.9		)	51.2		314.1			—			97.4
Income tax expense (benefit)	—			(14.7		)	0.1		17.6			—			3.0
Earnings from equity in subsidiaries	94.1			81.4			67.1		—			(242.6		)	—
Net income (loss) before royalties	94.1			(171.8		)	118.2		296.5			(242.6		)	94.4
Royalties	—			154.6			1.5		(156.1		)	—			—
Net income (loss) after royalties	94.1			(17.2		)	119.7		140.4			(242.6		)	94.4
Net income attributable to noncontrolling interests	—			—			—		(0.3		)	—			(0.3		)
Net income (loss) attributable to AAM	$	94.1		$	(17.2	)	$	119.7	$	140.1		$	(242.6	)	$	94.1
Other comprehensive income (loss), net of tax	(14.1		)	(13.8		)	3.3		6.9			3.6			(14.1		)
Comprehensive income (loss) attributable to AAM	$	80.0		$	(31.0	)	$	123.0	$	147.0		$	(239.0	)	$	80.0

	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2018
Net sales
External	$	—		$	604.3		$	1,154.9		$	2,000.1		$	—		$	3,759.3
Intercompany	—			3.3			156.0			20.3			(179.6		)	—
Total net sales	—			607.6			1,310.9			2,020.4			(179.6		)	3,759.3
Cost of goods sold	—			583.9			1,119.1			$	1,588.2		(179.6		)	3,111.6
Gross profit	—			23.7			191.8			432.2			—			647.7
Selling, general and administrative expenses	—			120.0			41.8			30.5			—			192.3
Amortization of intangible assets	—			2.9			45.1			1.7			—			49.7
Restructuring and acquisition-related costs	—			26.1			27.9			1.1			—			55.1
Gain on sale of business	—			—			(15.5		)	—			—			(15.5		)
Operating income (loss)	—			(125.3		)	92.5			398.9			—			366.1
Non-operating income (expense), net	—			(133.8		)	8.2			20.2			—			(105.4		)
Income (loss) before income taxes	—			(259.1		)	100.7			419.1			—			260.7
Income tax expense	—			9.1			0.5			10.3			—			19.9
Earnings from equity in subsidiaries	240.5			173.5			107.8			—			(521.8		)	—
Net income (loss) before royalties	240.5			(94.7		)	208.0			408.8			(521.8		)	240.8
Royalties	—			169.2			1.9			(171.1		)	—			—
Net income after royalties	240.5			74.5			209.9			237.7			(521.8		)	240.8
Net income attributable to noncontrolling interests	—			—			—			(0.3		)	—			(0.3		)
Net income attributable to AAM	$	240.5		$	74.5		$	209.9		$	237.4		$	(521.8	)	$	240.5
Other comprehensive loss, net of tax	(22.4		)	(3.6		)	(40.2		)	(37.3		)	81.1			(22.4		)
Comprehensive income attributable to AAM	$	218.1		$	70.9		$	169.7		$	200.1		$	(440.7	)	$	218.1

Supplemental Guarantor Consolidating Balance Sheet [Table Text Block]

Condensed Consolidating Balance Sheets
(in millions)
	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
June 30, 2019
Assets
Current assets
Cash and cash equivalents	$	—	$	71.2	$	0.1	$	177.5	$	—		$	248.8
Accounts receivable, net	—		116.2		313.3		708.5		—			1,138.0
Intercompany receivables	—		4,574.2		4,316.7		171.3		(9,062.2		)	—
Inventories, net	—		45.9		169.6		244.4		—			459.9
Prepaid expenses and other	—		32.9		5.1		92.0		—			130.0
Total current assets	—		4,840.4		4,804.8		1,393.7		(9,062.2		)	1,976.7
Property, plant and equipment, net	—		291.4		741.6		1,511.4		—			2,544.4
Goodwill	—		—		719.0		421.9		—			1,140.9
Intangible assets, net	—		16.5		1,016.4		30.2		—			1,063.1
Intercompany notes and accounts receivable	—		1,324.2		179.9		—		(1,504.1		)	—
Other assets and deferred charges	—		331.3		184.3		307.2		—			822.8
Investment in subsidiaries	2,884.0		2,330.9		1,798.5		—		(7,013.4		)	—
Total assets	$	2,884.0	$	9,134.7	$	9,444.5	$	3,664.4	$	(17,579.7	)	$	7,547.9
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	6.4	$	3.0	$	16.6	$	—		$	26.0
Accounts payable	—		115.4		252.7		485.3		—			853.4
Intercompany payables	—		3,587.9		5,468.4		5.9		(9,062.2		)	—
Accrued expenses and other	—		146.1		43.5		198.1		—			387.7
Total current liabilities	—		3,855.8		5,767.6		705.9		(9,062.2		)	1,267.1
Intercompany notes and accounts payable	1,311.8		28.4		—		163.9		(1,504.1		)	—
Long-term debt, net	—		3,571.1		—		103.1		—			3,674.2
Other long-term liabilities	—		502.4		312.5		219.5		—			1,034.4
Total liabilities	1,311.8		7,957.7		6,080.1		1,192.4		(10,566.3		)	5,975.7
Total AAM Stockholders’ equity	1,569.5		1,177.0		3,364.4		2,469.3		(7,010.7		)	1,569.5
Noncontrolling interests in subsidiaries	2.7		—		—		2.7		(2.7		)	2.7
Total stockholders’ equity	1,572.2		1,177.0		3,364.4		2,472.0		(7,013.4		)	1,572.2
Total liabilities and stockholders’ equity	$	2,884.0	$	9,134.7	$	9,444.5	$	3,664.4	$	(17,579.7	)	$	7,547.9

 

	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
December 31, 2018
Assets
Current assets
Cash and cash equivalents	$	—	$	36.7	$	0.2	$	439.5	$	—		$	476.4
Accounts receivable, net	—		122.7		287.7		556.1		—			966.5
Intercompany receivables	—		3,337.2		2,356.3		93.5		(5,787.0		)	—
Inventories, net	—		42.5		157.7		259.5		—			459.7
Prepaid expenses and other	—		34.4		6.0		86.8		—			127.2
Total current assets	—		3,573.5		2,807.9		1,435.4		(5,787.0		)	2,029.8
Property, plant and equipment, net	—		275.8		758.6		1,480.0		—			2,514.4
Goodwill	—		—		719.0		422.8		—			1,141.8
Intangible assets, net	—		18.6		1,059.6		32.9		—			1,111.1
Intercompany notes and accounts receivable	—		1,316.8		144.5		—		(1,461.3		)	—
Other assets and deferred charges	—		319.8		126.4		267.4		—			713.6
Investment in subsidiaries	2,790.5		2,241.5		1,748.7		—		(6,780.7		)	—
Total assets	$	2,790.5	$	7,746.0	$	7,364.7	$	3,638.5	$	(14,029.0	)	$	7,510.7
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	100.0	$	—	$	21.6	$	—		$	121.6
Accounts payable	—		94.2		246.5		499.5		—			840.2
Intercompany payables	—		2,050.0		3,615.7		121.3		(5,787.0		)	—
Accrued expenses and other	—		169.0		35.8		190.2		—			395.0
Total current liabilities	—		2,413.2		3,898.0		832.6		(5,787.0		)	1,356.8
Intercompany notes and accounts payable	1,304.2		12.5		—		144.6		(1,461.3		)	—
Long-term debt, net	—		3,578.3		3.0		105.5		—			3,686.8
Other long-term liabilities	—		508.9		271.7		200.2		—			980.8
Total liabilities	1,304.2		6,512.9		4,172.7		1,282.9		(7,248.3		)	6,024.4
Total AAM Stockholders’ equity	1,483.9		1,233.1		3,192.0		2,353.2		(6,778.3		)	1,483.9
Noncontrolling interests in subsidiaries	2.4		—		—		2.4		(2.4		)	2.4
Total stockholders’ equity	1,486.3		1,233.1		3,192.0		2,355.6		(6,780.7		)	1,486.3
Total liabilities and stockholders’ equity	$	2,790.5	$	7,746.0	$	7,364.7	$	3,638.5	$	(14,029.0	)	$	7,510.7

Supplemental Guarantor Consolidating Statement of Cash Flows [Table Text Block]

Condensed Consolidating Statements of Cash Flows
Six Months Ended June 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2019
Net cash provided by (used in) operating activities	$	—		$	186.8		$	65.2		$	(115.1	)	$	—	$	136.9
Investing activities
Purchases of property, plant and equipment	—			(32.8		)	(60.4		)	(144.3		)	—		(237.5		)
Proceeds from sale of property, plant and equipment	—			—			1.7			—			—		1.7
Investment in joint ventures	—			—			—			(2.2		)	—		(2.2		)
Intercompany activity	—			—			(6.4		)	6.4			—		—
Net cash used in investing activities	—			(32.8		)	(65.1		)	(140.1		)	—		(238.0		)
Financing activities
Net debt activity	—			(112.0		)	(0.2		)	(8.0		)	—		(120.2		)
Purchase of treasury stock	(7.5		)	—			—			—			—		(7.5		)
Intercompany activity	7.5			(7.5		)	—			—			—		—
Net cash used in financing activities	—			(119.5		)	(0.2		)	(8.0		)	—		(127.7		)
Effect of exchange rate changes on cash	—			—			—			1.2			—		1.2
Net increase (decrease) in cash, cash equivalents and restricted cash	—			34.5			(0.1		)	(262.0		)	—		(227.6		)
Cash, cash equivalents and restricted cash at beginning of period	—			36.7			2.7			439.5			—		478.9
Cash, cash equivalents and restricted cash at end of period	$	—		$	71.2		$	2.6		$	177.5		$	—	$	251.3

	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2018
Net cash provided by operating activities	$	—		$	152.3		$	8.6		$	128.5		$	—	$	289.4
Investing activities
Purchases of property, plant and equipment	—			(40.3		)	(74.5		)	(158.2		)	—		(273.0		)
Proceeds from sale of property, plant and equipment	—			—			0.5			0.4			—		0.9
Purchase buyouts of leased equipment	—			—			(0.5		)	—			—		(0.5		)
Proceeds from sale of business, net	—			—			42.7			4.4			—		47.1
Acquisition of business, net of cash acquired	—			—			—			(1.3		)	—		(1.3		)
Net cash used in investing activities	—			(40.3		)	(31.8		)	(154.7		)	—		(226.8		)
Financing activities
Net debt activity	—			(111.2		)	(0.4		)	44.8			—		(66.8		)
Debt issuance costs	—			(6.8		)	—			—			—		(6.8		)
Purchase of treasury stock	(3.6		)	—			—			—			—		(3.6		)
Purchase of noncontrolling interest	—			—			(2.2		)	—			—		(2.2		)
Intercompany activity	3.6			(3.6		)	28.5			(28.5		)	—		—
Net cash provided by (used in) financing activities	—			(121.6		)	25.9			16.3			—		(79.4		)
Effect of exchange rate changes on cash	—			—			—			(4.3		)	—		(4.3		)
Net increase (decrease) in cash, cash equivalents and restricted cash	—			(9.6		)	2.7			(14.2		)	—		(21.1		)
Cash, cash equivalents and restricted cash at beginning of period	—			91.9			0.1			284.8			—		376.8
Cash, cash equivalents and restricted cash at end of period	$	—		$	82.3		$	2.8		$	270.6		$	—	$	355.7