Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2019

Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract]

Supplemental Guarantor Consolidating Statement of Operations [Table Text Block]

Condensed Consolidating Statements of Operations
Three Months Ended September 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2019
Net sales
External	$	—		$	205.7		$	506.5		$	965.2		$	—		$	1,677.4
Intercompany	—			0.5			77.0			16.5			(94.0		)	—
Total net sales	—			206.2			583.5			981.7			(94.0		)	1,677.4
Cost of goods sold	—			221.2			529.6			771.9			(94.0		)	1,428.7
Gross profit (loss)	—			(15.0		)	53.9			209.8			—			248.7
Selling, general and administrative expenses	—			68.9			6.8			17.0			—			92.7
Amortization of intangible assets	—			1.4			21.4			0.9			—			23.7
Impairment charges	—			—			225.0			—			—			225.0
Restructuring and acquisition-related costs	—			6.2			4.1			1.4			—			11.7
Operating income (loss)	—			(91.5		)	(203.4		)	190.5			—			(104.4		)
Non-operating income (expense), net	—			(62.7		)	2.3			0.3			—			(60.1		)
Income (loss) before income taxes	—			(154.2		)	(201.1		)	190.8			—			(164.5		)
Income tax expense (benefit)	—			(8.5		)	(46.8		)	14.9			—			(40.4		)
Earnings (loss) from equity in subsidiaries	(124.2		)	50.5			38.2			—			35.5			—
Net income (loss) before royalties	(124.2		)	(95.2		)	(116.1		)	175.9			35.5			(124.1		)
Royalties	—			86.6			0.7			(87.3		)	—			—
Net income (loss) after royalties	(124.2		)	(8.6		)	(115.4		)	88.6			35.5			(124.1		)
Net income attributable to noncontrolling interests	—			—			—			(0.1		)	—			(0.1		)
Net income (loss) attributable to AAM	$	(124.2	)	$	(8.6	)	$	(115.4	)	$	88.5		$	35.5		$	(124.2	)
Other comprehensive income (loss), net of tax	(44.8		)	(26.4		)	(35.4		)	(36.4		)	98.2			(44.8		)
Comprehensive income (loss) attributable to AAM	$	(169.0	)	$	(35.0	)	$	(150.8	)	$	52.1		$	133.7		$	(169.0	)

	Holdings		AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2018
Net sales
External	$	—	$	247.1		$	544.3		$	1,025.6		$	—		$	1,817.0
Intercompany	—		0.7			75.6			10.8			(87.1		)	—
Total net sales	—		247.8			619.9			1,036.4			(87.1		)	1,817.0
Cost of goods sold	—		220.6			594.2			821.9			(87.1		)	1,549.6
Gross profit	—		27.2			25.7			214.5			—			267.4
Selling, general and administrative expenses	—		63.4			19.6			13.3			—			96.3
Amortization of intangible assets	—		1.0			22.9			0.9			—			24.8
Restructuring and acquisition-related costs	—		5.0			3.9			2.8			—			11.7
Operating income (loss)	—		(42.2		)	(20.7		)	197.5			—			134.6
Non-operating income (expense), net	—		(60.0		)	2.8			(1.9		)	—			(59.1		)
Income (loss) before income taxes	—		(102.2		)	(17.9		)	195.6			—			75.5
Income tax expense (benefit)	—		(1.0		)	0.1			12.4			—			11.5
Earnings from equity in subsidiaries	63.8		68.1			33.8			—			(165.7		)	—
Net income (loss) before royalties	63.8		(33.1		)	15.8			183.2			(165.7		)	64.0
Royalties	—		87.6			0.7			(88.3		)	—			—
Net income after royalties	63.8		54.5			16.5			94.9			(165.7		)	64.0
Net income attributable to noncontrolling interests	—		—			—			(0.2		)	—			(0.2		)
Net income attributable to AAM	$	63.8	$	54.5		$	16.5		$	94.7		$	(165.7	)	$	63.8
Other comprehensive income (loss), net of tax	1.5		1.0			(10.3		)	—			9.3			1.5
Comprehensive income attributable to AAM	$	65.3	$	55.5		$	6.2		$	94.7		$	(156.4	)	$	65.3

Condensed Consolidating Statements of Operations
Nine Months Ended September 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2019
Net sales
External	$	—		$	711.8		$	1,561.8		$	2,827.3		$	—		$	5,100.9
Intercompany	—			1.5			219.8			37.2			(258.5		)	—
Total net sales	—			713.3			1,781.6			2,864.5			(258.5		)	5,100.9
Cost of goods sold	—			721.1			1,612.2			2,306.9			(258.5		)	4,381.7
Gross profit (loss)	—			(7.8		)	169.4			557.6			—			719.2
Selling, general and administrative expenses	—			208.9			22.4			43.4			—			274.7
Amortization of intangible assets	—			4.3			66.6			2.7			—			73.6
Impairment charges	—			—			225.0			—			—			225.0
Restructuring and acquisition-related costs	—			17.1			12.3			6.6			—			36.0
Operating income (loss)	—			(238.1		)	(156.9		)	504.9			—			109.9
Non-operating income (expense), net	—			(184.0		)	7.0			—			—			(177.0		)
Income (loss) before income taxes	—			(422.1		)	(149.9		)	504.9			—			(67.1		)
Income tax expense (benefit)	—			(23.2		)	(46.7		)	32.5			—			(37.4		)
Earnings (loss) from equity in subsidiaries	(30.1		)	131.9			105.3			—			(207.1		)	—
Net income (loss) before royalties	(30.1		)	(267.0		)	2.1			472.4			(207.1		)	(29.7		)
Royalties	—			241.2			2.2			(243.4		)	—			—
Net income (loss) after royalties	(30.1		)	(25.8		)	4.3			229.0			(207.1		)	(29.7		)
Net income attributable to noncontrolling interests	—			—			—			(0.4		)	—			(0.4		)
Net income (loss) attributable to AAM	$	(30.1	)	$	(25.8	)	$	4.3		$	228.6		$	(207.1	)	$	(30.1	)
Other comprehensive income (loss), net of tax	(58.9		)	(40.2		)	(32.1		)	(29.5		)	101.8			(58.9		)
Comprehensive income (loss) attributable to AAM	$	(89.0	)	$	(66.0	)	$	(27.8	)	$	199.1		$	(105.3	)	$	(89.0	)

	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims			Consolidated
2018
Net sales
External	$	—		$	851.4		$	1,699.2		$	3,025.7		$	—		$	5,576.3
Intercompany	—			4.0			231.6			31.1			(266.7		)	—
Total net sales	—			855.4			1,930.8			3,056.8			(266.7		)	5,576.3
Cost of goods sold	—			804.5			1,713.3			2,410.1			(266.7		)	4,661.2
Gross profit	—			50.9			217.5			646.7			—			915.1
Selling, general and administrative expenses	—			183.4			61.4			43.8			—			288.6
Amortization of intangible assets	—			3.9			68.0			2.6			—			74.5
Restructuring and acquisition-related costs	—			31.1			31.8			3.9			—			66.8
Gain on sale of business	—			—			(15.5		)	—			—			(15.5		)
Operating income (loss)	—			(167.5		)	71.8			596.4			—			500.7
Non-operating income (expense), net	—			(193.8		)	11.0			18.3			—			(164.5		)
Income (loss) before income taxes	—			(361.3		)	82.8			614.7			—			336.2
Income tax expense	—			8.1			0.6			22.7			—			31.4
Earnings from equity in subsidiaries	304.3			241.6			141.6			—			(687.5		)	—
Net income (loss) before royalties	304.3			(127.8		)	223.8			592.0			(687.5		)	304.8
Royalties	—			256.8			2.6			(259.4		)	—			—
Net income after royalties	304.3			129.0			226.4			332.6			(687.5		)	304.8
Net income attributable to noncontrolling interests	—			—			—			(0.5		)	—			(0.5		)
Net income attributable to AAM	$	304.3		$	129.0		$	226.4		$	332.1		$	(687.5	)	$	304.3
Other comprehensive loss, net of tax	(20.9		)	(2.6		)	(50.5		)	(37.3		)	90.4			(20.9		)
Comprehensive income attributable to AAM	$	283.4		$	126.4		$	175.9		$	294.8		$	(597.1	)	$	283.4

Supplemental Guarantor Consolidating Balance Sheet [Table Text Block]

Condensed Consolidating Balance Sheets
(in millions)
	Holdings		AAM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elims			Consolidated
September 30, 2019
Assets
Current assets
Cash and cash equivalents	$	—	$	79.4	$	0.1	$	295.6	$	—		$	375.1
Accounts receivable, net	—		95.2		230.8		650.9		—			976.9
Intercompany receivables	—		4,864.1		4,722.1		183.0		(9,769.2		)	—
Inventories, net	—		62.8		116.9		223.4		—			403.1
Prepaid expenses and other	—		34.3		3.7		92.9		—			130.9
Current assets held-for-sale	—		—		312.2		—		—			312.2
Total current assets	—		5,135.8		5,385.8		1,445.8		(9,769.2		)	2,198.2
Property, plant and equipment, net	—		294.1		554.5		1,477.8		—			2,326.4
Goodwill	—		—		719.0		408.5		—			1,127.5
Intangible assets, net	—		15.4		836.9		29.2		—			881.5
Intercompany notes and accounts receivable	—		1,542.1		186.7		—		(1,728.8		)	—
Other assets and deferred charges	—		339.7		118.1		324.9		—			782.7
Investment in subsidiaries	2,721.4		2,155.9		1,504.1		—		(6,381.4		)	—
Total assets	$	2,721.4	$	9,483.0	$	9,305.1	$	3,686.2	$	(17,879.4	)	$	7,316.3
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	—	$	2.1	$	5.3	$	16.4	$	—		$	23.8
Accounts payable	—		101.3		169.1		433.3		—			703.7
Intercompany payables	—		3,931.7		5,835.5		2.0		(9,769.2		)	—
Accrued expenses and other	—		165.2		34.9		207.8		—			407.9
Current liabilities held-for-sale	—		—		101.7		—		—			101.7
Total current liabilities	—		4,200.3		6,146.5		659.5		(9,769.2		)	1,237.1
Intercompany notes and accounts payable	1,311.8		36.0		—		381.0		(1,728.8		)	—
Long-term debt, net	—		3,581.8		—		91.5		—			3,673.3
Other long-term liabilities	—		503.0		243.1		250.2		—			996.3
Total liabilities	1,311.8		8,321.1		6,389.6		1,382.2		(11,498.0		)	5,906.7
Total AAM Stockholders’ equity	1,406.8		1,161.9		2,915.5		2,301.2		(6,378.6		)	1,406.8
Noncontrolling interests in subsidiaries	2.8		—		—		2.8		(2.8		)	2.8
Total stockholders’ equity	1,409.6		1,161.9		2,915.5		2,304.0		(6,381.4		)	1,409.6
Total liabilities and stockholders’ equity	$	2,721.4	$	9,483.0	$	9,305.1	$	3,686.2	$	(17,879.4	)	$	7,316.3

 

	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
Nine Months Ended September 30,
(in millions)
	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2019
Net cash provided by operating activities	$	—		$	214.1		$	20.4		$	144.1		$	—	$	378.6
Investing activities
Purchases of property, plant and equipment	—			(46.8		)	(91.0		)	(197.5		)	—		(335.3		)
Proceeds from sale of property, plant and equipment	—			—			1.7			0.3			—		2.0
Investment in joint ventures	—			—			—			(2.2		)	—		(2.2		)
Intercompany activity	—			—			(12.0		)	12.0			—		—
Net cash used in investing activities	—			(46.8		)	(101.3		)	(187.4		)	—		(335.5		)
Financing activities
Net debt activity	—			(113.8		)	(0.2		)	(15.3		)	—		(129.3		)
Debt issuance costs	—			(3.3		)	—			—			—		(3.3		)
Purchase of treasury stock	(7.5		)	—			—			—			—		(7.5		)
Intercompany activity	7.5			(7.5		)	81.0			(81.0		)	—		—
Net cash used in financing activities	—			(124.6		)	80.8			(96.3		)	—		(140.1		)
Effect of exchange rate changes on cash	—			—			—			(4.3		)	—		(4.3		)
Net increase (decrease) in cash, cash equivalents and restricted cash	—			42.7			(0.1		)	(143.9		)	—		(101.3		)
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	$	—		$	79.4		$	2.6		$	295.6		$	—	$	377.6

	Holdings			AAM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elims		Consolidated
2018
Net cash provided by operating activities	$	—		$	240.0		$	103.0		$	170.2		$	—	$	513.2
Investing activities
Purchases of property, plant and equipment	—			(51.8		)	(121.2		)	(218.8		)	—		(391.8		)
Proceeds from sale of property, plant and equipment	—			—			2.7			0.5			—		3.2
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		)
Intercompany activity	—			—			(43.8		)	43.8			—		—
Net cash used in investing activities	—			(51.8		)	(120.1		)	(171.4		)	—		(343.3		)
Financing activities
Net debt activity	—			(140.3		)	(0.6		)	54.2			—		(86.7		)
Debt issuance costs	—			(6.9		)	—			—			—		(6.9		)
Purchase of treasury stock	(3.7		)	—			—			—			—		(3.7		)
Purchase of noncontrolling interest	—			—			(2.2		)	—			—		(2.2		)
Intercompany activity	3.7			(3.7		)	22.5			(22.5		)	—		—
Net cash provided by (used in) financing activities	—			(150.9		)	19.7			31.7			—		(99.5		)
Effect of exchange rate changes on cash	—			—			—			(5.3		)	—		(5.3		)
Net increase in cash, cash equivalents and restricted cash	—			37.3			2.6			25.2			—		65.1
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	$	—		$	129.2		$	2.7		$	310.0		$	—	$	441.9