0001062231-19-000066.txt : 20191101 0001062231-19-000066.hdr.sgml : 20191101 20191101140841 ACCESSION NUMBER: 0001062231-19-000066 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 98 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191101 DATE AS OF CHANGE: 20191101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN AXLE & MANUFACTURING HOLDINGS INC CENTRAL INDEX KEY: 0001062231 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 383161171 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-14303 FILM NUMBER: 191186420 BUSINESS ADDRESS: STREET 1: ONE DAUCH DRIVE CITY: DETROIT STATE: MI ZIP: 48211-1198 BUSINESS PHONE: 3137583600 MAIL ADDRESS: STREET 1: ONE DAUCH DRIVE CITY: DETROIT STATE: MI ZIP: 48211-1198 10-Q 1 axl-q32019x10q.htm SEPTEMBER 30, 2019 FORM 10-Q Document
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
For the quarterly period ended
September 30, 2019
 
 
or
 
 
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
For the transition period from  _____________ to _____________
 
 
Commission File Number:  1-14303
_______________________________________________________________________________

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
 
Delaware
 
38-3161171
 
(State or Other Jurisdiction of Incorporation or Organization)
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
 
 
 
 
 
 
One Dauch Drive,
Detroit
,
Michigan
 
 
48211-1198
 
(Address of Principal Executive Offices)
 
(Zip Code)

(313) 758-2000
(Registrant's Telephone Number, Including Area Code)
_______________________________________________________________________________
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer            Accelerated filer           Non-accelerated filer            Smaller reporting company            Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No 

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, par value $0.01 per share
AXL
New York Stock Exchange

As of October 29, 2019, the latest practicable date, the number of shares of the registrant's Common Stock, par value $0.01 per share, outstanding was 112,475,824 shares.
 
Internet Website Access to Reports

The website for American Axle & Manufacturing Holdings, Inc. is www.aam.com.  Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13 or 15(d) of the Exchange Act are available free of charge through our website as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission (SEC).  The SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.




AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2019
TABLE OF CONTENTS 
 
 
 
 
Page Number
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FORWARD-LOOKING STATEMENTS

In this Quarterly Report on Form 10-Q (Quarterly Report), we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as “will,” “may,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “project,” "target," and similar words or expressions, as well as statements in future tense, are intended to identify forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and may differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:

reduced purchases of our products by General Motors Company (GM), FCA US LLC (FCA), or other customers;
our ability to respond to changes in technology, increased competition or pricing pressures;
our ability to develop and produce new products that reflect market demand;
our ability or our customers' and suppliers' ability to successfully launch new product programs on a timely and cost efficient basis;
lower-than-anticipated market acceptance of new or existing products;
our ability to attract new customers and programs for new products;
an impairment of our goodwill, other intangible assets, or long-lived assets if our business or market conditions indicate that the carrying values of those assets exceed their fair values;
reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM and FCA);
risks inherent in our global operations (including tariffs and the potential consequences thereof to us, our suppliers, and our customers and their suppliers, adverse changes in trade agreements, such as NAFTA, or proposed trade agreements, such as the USMCA, immigration policies, political stability, taxes and other law changes, potential disruptions of production and supply, and currency rate fluctuations);
a significant disruption in operations at one or more of our key manufacturing facilities;
our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid work stoppages;
global economic conditions;
liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber attack and other similar disruptions;
supply shortages or price increases in raw material and/or freight, utilities or other operating supplies for us or our customers as a result of natural disasters or otherwise;
our ability to successfully integrate the business and information systems of MPG and to realize the anticipated benefits of the merger;
negative or unexpected tax consequences;
our ability to achieve the level of cost reductions required to sustain global cost competitiveness;
our ability to realize the expected revenues from our new and incremental business backlog;
our ability to maintain satisfactory labor relations and avoid work stoppages;
price volatility in, or reduced availability of, fuel;
potential liabilities or litigation relating to, or assumed in, the MPG merger;
potential adverse reactions or changes to business relationships resulting from the completion of the merger with MPG;
our ability to protect our intellectual property and successfully defend against assertions made against us;
our ability to attract and retain key associates;
availability of financing for working capital, capital expenditures, research and development (R&D) or other general corporate purposes including acquisitions, as well as our ability to comply with financial covenants;
our customers' and suppliers' availability of financing for working capital, capital expenditures, R&D or other general corporate purposes;
changes in liabilities arising from pension and other postretirement benefit obligations;
risks of noncompliance with environmental laws and regulations or risks of environmental issues that could result in unforeseen costs at our current and former facilities, or reputational damage;
adverse changes in laws, government regulations or market conditions affecting our products or our customers' products;
our ability or our customers' and suppliers' ability to comply with regulatory requirements and the potential costs of such compliance; and
other unanticipated events and conditions that may hinder our ability to compete.

It is not possible to foresee or identify all such factors and we make no commitment to update any forward-looking statement or to disclose any facts, events or circumstances after the date hereof that may affect the accuracy of any forward-looking statement.


1



PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions, except per share data)
 
 
 
 
 
 
 
 
Net sales
$
1,677.4

 
$
1,817.0

 
$
5,100.9

 
$
5,576.3

 
 
 
 
 
 
 
 
Cost of goods sold
1,428.7

 
1,549.6

 
4,381.7

 
4,661.2

 
 
 
 
 
 
 
 
Gross profit
248.7

 
267.4

 
719.2

 
915.1

 
 
 
 
 
 
 
 
Selling, general and administrative expenses
92.7

 
96.3

 
274.7

 
288.6

 
 
 
 
 
 
 
 
Amortization of intangible assets
23.7

 
24.8

 
73.6

 
74.5

 
 
 
 
 
 
 
 
Impairment charge (Note 2)
225.0

 

 
225.0

 

 

 
 
 
 
 
 
Restructuring and acquisition-related costs
11.7

 
11.7

 
36.0

 
66.8

 
 
 
 
 
 
 
 
Gain on sale of business

 

 

 
(15.5
)
 
 
 
 
 
 
 
 
Operating income (loss)
(104.4
)
 
134.6

 
109.9

 
500.7

 
 
 
 
 
 
 
 
Interest expense
(54.3
)
 
(54.9
)
 
(163.9
)
 
(162.5
)
 
 
 
 
 
 
 
 
Investment income
2.2

 
0.6

 
3.4

 
1.6

 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
Debt refinancing and redemption costs
(5.1
)
 

 
(7.5
)
 
(14.6
)
Gain on settlement of capital lease

 

 

 
15.6

     Other expense, net
(2.9
)
 
(4.8
)
 
(9.0
)
 
(4.6
)
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(164.5
)
 
75.5

 
(67.1
)
 
336.2

 
 
 
 
 
 
 
 
Income tax expense (benefit)
(40.4
)
 
11.5

 
(37.4
)
 
31.4

 
 
 
 
 
 
 
 
Net income (loss)
$
(124.1
)
 
$
64.0

 
$
(29.7
)
 
$
304.8

 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests
(0.1
)
 
(0.2
)
 
(0.4
)
 
(0.5
)
 
 
 
 
 
 
 
 
Net income (loss) attributable to AAM
$
(124.2
)
 
$
63.8

 
$
(30.1
)
 
$
304.3

 

 

 

 

Basic earnings (loss) per share
$
(1.10
)
 
$
0.55

 
$
(0.27
)
 
$
2.65

 

 

 

 

Diluted earnings (loss) per share
$
(1.10
)
 
$
0.55

 
$
(0.27
)
 
$
2.63

 
See accompanying notes to condensed consolidated financial statements.

2



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Net income (loss)
$
(124.1
)
 
$
64.0

 
$
(29.7
)
 
$
304.8

 
 
 
 
 
 
 
 
Other comprehensive income (loss)

 

 

 

Defined benefit plans, net of tax (a)
(1.3
)
 
1.0

 
0.5

 
14.5

     Foreign currency translation adjustments
(37.1
)
 
(11.9
)
 
(34.7
)
 
(55.0
)
     Changes in cash flow hedges, net of tax (b)
(6.4
)
 
12.4

 
(24.7
)
 
19.6

Other comprehensive income (loss)
(44.8
)
 
1.5

 
(58.9
)
 
(20.9
)
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
(168.9
)
 
$
65.5

 
$
(88.6
)
 
$
283.9

 
 
 
 
 
 
 
 
     Net income attributable to noncontrolling interests
(0.1
)
 
(0.2
)
 
(0.4
)
 
(0.5
)
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to AAM
$
(169.0
)
 
$
65.3

 
$
(89.0
)
 
$
283.4

(a)
Amounts are net of tax of $0.3 million and $(0.2) million for the three and nine months ended September 30, 2019, and $(0.3) million and $(4.8) million for the three and nine months ended September 30, 2018, respectively.
(b)
Amounts are net of tax of $1.1 million and $7.3 million for the three and nine months ended September 30, 2019, and $(0.5) million and $(1.7) million for the three and nine months ended September 30, 2018, respectively.

See accompanying notes to condensed consolidated financial statements.                   

3



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

 
 
September 30, 2019
 
December 31, 2018
 
 
(Unaudited)
 
 
Assets
 
(in millions)
Current assets
 
 
Cash and cash equivalents
 
$
375.1

 
$
476.4

Accounts receivable, net
 
976.9

 
966.5

Inventories, net
 
403.1

 
459.7

Prepaid expenses and other
 
130.9

 
127.2

Current assets held-for-sale
 
312.2

 

Total current assets
 
2,198.2

 
2,029.8

 
 
 

 
 

Property, plant and equipment, net
 
2,326.4

 
2,514.4

Deferred income taxes
 
61.9

 
45.5

Goodwill
 
1,127.5

 
1,141.8

Other intangible assets, net
 
881.5

 
1,111.1

GM postretirement cost sharing asset
 
223.1

 
219.4

Other assets and deferred charges
 
497.7

 
448.7

Total assets
 
$
7,316.3

 
$
7,510.7

 
 
 

 
 

Liabilities and Stockholders’ Equity
 
 

 
 

Current liabilities
 
 

 
 

Current portion of long-term debt
 
$
23.8

 
$
121.6

Accounts payable
 
703.7

 
840.2

Accrued compensation and benefits
 
165.1

 
179.0

Deferred revenue
 
22.6

 
44.3

Accrued expenses and other
 
220.2

 
171.7

Current liabilities held-for-sale
 
101.7

 

Total current liabilities
 
1,237.1

 
1,356.8

 
 
 

 
 

Long-term debt, net
 
3,673.3

 
3,686.8

Deferred revenue
 
83.1

 
77.6

Deferred income taxes
 
21.6

 
92.6

Postretirement benefits and other long-term liabilities
 
891.6

 
810.6

Total liabilities
 
5,906.7

 
6,024.4

 
 
 

 
 

Stockholders' equity
 
 

 
 

Common stock, par value $0.01 per share; 150.0 million shares authorized;
 
 
 
 
120.1 million shares issued as of September 30, 2019 and 118.9 million shares issued as of December 31, 2018
 
1.2

 
1.2

Paid-in capital
 
1,310.1

 
1,292.6

Retained earnings
 
703.0

 
703.5

Treasury stock at cost, 7.6 million shares as of September 30, 2019 and 7.2 million shares as of December 31, 2018
 
(209.3
)
 
(201.8
)
Accumulated other comprehensive loss
 
 
 
 
Defined benefit plans, net of tax
 
(241.1
)
 
(213.9
)
Foreign currency translation adjustments
 
(131.3
)
 
(96.6
)
Unrecognized loss on cash flow hedges, net of tax
 
(25.8
)
 
(1.1
)
Total AAM stockholders' equity
 
1,406.8

 
1,483.9

Noncontrolling interests in subsidiaries
 
2.8

 
2.4

Total stockholders' equity
 
1,409.6

 
1,486.3

Total liabilities and stockholders' equity
 
$
7,316.3

 
$
7,510.7

 See accompanying notes to condensed consolidated financial statements. 

4



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
Nine Months Ended
 
 
September 30,
 
 
2019
 
2018
 
 
(in millions)
Operating activities
 
 
 
 
Net income (loss)
 
$
(29.7
)
 
$
304.8

Adjustments to reconcile net income (loss) to net cash provided by operating activities
 
 
 
 
Depreciation and amortization
 
411.5

 
390.9

Impairment charges (Note 2 and Note 4)
 
225.0

 
26.6

Deferred income taxes
 
(87.6
)
 
51.7

Stock-based compensation
 
17.5

 
20.7

Pensions and other postretirement benefits, net of contributions
 
(10.4
)
 
(3.1
)
Gain on sale of business
 

 
(15.5
)
Loss (gain) on disposal of property, plant and equipment, net
 
1.3

 
(3.3
)
Debt refinancing and redemption costs and (gain) on settlement of capital lease
 
7.5

 
(0.8
)
Changes in operating assets and liabilities
 
 
 
 
Accounts receivable
 
(108.4
)
 
(248.0
)
Inventories
 
18.8

 
(67.2
)
Accounts payable and accrued expenses
 
8.6

 
188.7

Deferred revenue
 
(12.9
)
 
13.3

Other assets and liabilities
 
(62.6
)
 
(145.6
)
Net cash provided by operating activities
 
378.6

 
513.2

 
 
 

 
 

Investing activities
 
 

 
 

Purchases of property, plant and equipment
 
(335.3
)
 
(391.8
)
Proceeds from sale of property, plant and equipment
 
2.0

 
3.2

Investment in joint venture
 
(2.2
)
 

Purchase buyouts of leased equipment
 

 
(0.5
)
Proceeds from sale of business, net
 

 
47.1

Acquisition of business
 

 
(1.3
)
Net cash used in investing activities
 
(335.5
)
 
(343.3
)
 
 
 

 
 

Financing activities
 
 

 
 

Payments of long-term debt and finance lease obligations
 
(477.7
)

(568.0
)
Proceeds from issuance of long-term debt
 
348.4


481.3

Debt issuance costs
 
(3.3
)

(6.9
)
Purchase of noncontrolling interest
 

 
(2.2
)
Purchase of treasury stock
 
(7.5
)

(3.7
)
Net cash used in financing activities
 
(140.1
)

(99.5
)
 
 
 

 
 

Effect of exchange rate changes on cash
 
(4.3
)

(5.3
)
 
 
 

 
 

Net increase (decrease) in cash, cash equivalents and restricted cash
 
(101.3
)

65.1

 
 
 

 
 

Cash, cash equivalents and restricted cash at beginning of period
 
478.9


376.8

 
 
 

 
 

Cash, cash equivalents and restricted cash at end of period
 
$
377.6


$
441.9

 
 
 

 
 

Supplemental cash flow information
 
 

 
 

     Interest paid
 
$
136.3

 
$
127.8

     Income taxes paid, net of refunds
 
$
45.7

 
$
33.6


See accompanying notes to condensed consolidated financial statements.

5



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)

 
Common Stock
 
 
 
Accumulated
Noncontrolling
 
Shares
Par
Paid-in
Retained
Treasury
Other Comprehensive
Interest
 
Outstanding
Value
Capital
Earnings
Stock
Income (Loss)
in Subsidiaries
Balance at January 1, 2018
111.3

$
1.2

$
1,264.6

$
761.0

$
(198.1
)
$
(292.7
)
$
4.0

Net income



89.4



0.1

Exercise of stock options and vesting of restricted stock units and performance shares
0.6







Stock-based compensation


6.6





Purchase of treasury stock
(0.2
)



(3.5
)


Changes in cash flow hedges





15.1


Foreign currency translation adjustments





37.9


Defined benefit plans, net





1.3


Purchase of noncontrolling interest






(0.9
)
Balance at March 31, 2018
111.7

$
1.2

$
1,271.2

$
850.4

$
(201.6
)
$
(238.4
)
$
3.2

Net income



151.1



0.2

Stock-based compensation


7.1





Purchase of treasury stock




(0.1
)


Changes in cash flow hedges





(7.9
)

Foreign currency translation adjustments





(81.0
)

Defined benefit plans, net





12.2


Purchase of noncontrolling interest






(1.4
)
Balance at June 30, 2018
111.7

$
1.2

$
1,278.3

$
1,001.5

$
(201.7
)
$
(315.1
)
$
2.0

Net income



63.8



0.2

Exercise of stock options


0.1





Stock-based compensation


7.1





Purchase of treasury stock
(0.1
)



(0.1
)


Changes in cash flow hedges





12.4


Foreign currency translation adjustments





(11.9
)

Defined benefit plans, net





1.0


Purchase of noncontrolling interest






(0.1
)
Balance at September 30, 2018
111.6

$
1.2

$
1,285.5

$
1,065.3

$
(201.8
)
$
(313.6
)
$
2.1


6



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (CONTINUED)
(Unaudited)

 
Common Stock
 
 
 
Accumulated
Noncontrolling
 
Shares
Par
Paid-in
Retained
Treasury
Other Comprehensive
Interest
 
Outstanding
Value
Capital
Earnings
Stock
Income (Loss)
in Subsidiaries
Balance at January 1, 2019
111.7

$
1.2

$
1,292.6

$
703.5

$
(201.8
)
$
(311.6
)
$
2.4

Net income



41.6



0.1

Vesting of restricted stock units and performance shares
1.2







Stock-based compensation


5.5





Modified-retrospective application of ASU 2016-02



1.9




Adoption of ASU 2018-02



27.7


(27.7
)

Purchase of treasury stock
(0.4
)



(7.3
)


Changes in cash flow hedges





(2.5
)

Foreign currency translation adjustments





(2.5
)

Defined benefit plans, net





0.7


Balance at March 31, 2019
112.5

$
1.2

$
1,298.1

$
774.7

$
(209.1
)
$
(343.6
)
$
2.5

Net income



52.5



0.2

Stock-based compensation


5.7





Purchase of treasury stock




(0.2
)


Changes in cash flow hedges





(15.8
)

Foreign currency translation adjustments





4.9


Defined benefit plans, net





1.1


Balance at June 30, 2019
112.5

$
1.2

$
1,303.8

$
827.2

$
(209.3
)
$
(353.4
)
$
2.7

Net loss



(124.2
)


0.1

Stock-based compensation


6.3





Changes in cash flow hedges





(6.4
)

Foreign currency translation adjustments





(37.1
)

Defined benefit plans, net





(1.3
)

Balance at September 30, 2019
112.5

$
1.2

$
1,310.1

$
703.0

$
(209.3
)
$
(398.2
)
$
2.8


See accompanying notes to condensed consolidated financial statements.


7



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2019
(Unaudited)

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization We are a global Tier 1 supplier to the automotive industry. We design, engineer and manufacture driveline, metal forming and casting products that are making the next generation of vehicles smarter, lighter, safer and more efficient. We employ over 25,000 associates, operating at nearly 90 facilities in 17 countries, to support our customers on global and regional platforms with a focus on quality, operational excellence and technology leadership.

In the third quarter of 2019, we entered into a definitive agreement to sell the U.S. operations of our Casting segment to entities affiliated with Gamut Capital Management, L.P. As a result, the assets and liabilities associated with this business have met the criteria to be classified as held-for-sale in our Condensed Consolidated Balance Sheet as of September 30, 2019. See Note 2 - Assets Held-for-Sale for further detail.

In the first quarter of 2019, we initiated a new global restructuring program (the 2019 Program) to further streamline our business by consolidating our four existing segments into three segments. This activity occurred through the disaggregation of our Powertrain