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Condensed Consolidating Financial Statements
9 Months Ended
Sep. 30, 2012
Condensed Consolidating Financial Statements [Abstract]  
Condensed Consolidating Financial Statements
Condensed Consolidating Financial Statements:
The Company’s senior unsecured notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) and are not secured by our other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned; all guarantees are full and unconditional; and all guarantees are joint and several. As a result of the guarantee arrangements, we are required to present the following condensed consolidating financial statements.
The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. Intercompany account balances have been included in Accounts and notes receivable, Other assets (Current), Other assets, net, Short-term debt, Accounts payable, and Long-term debt line items of the Parent, Guarantor and Non-Guarantor balance sheets. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.
Condensed consolidating financial statements of the Company, its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and 2011 are shown below:
Condensed Consolidating Balance Sheets
As of September 30, 2012
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.0

 
$
21.6

 
$
26.2

 
$

 
$
48.8

Accounts and notes receivable, net
(1,049.7
)
 
998.2

 
465.9

 
35.9

 
450.3

Inventories, net

 
278.6

 
126.2

 
(6.4
)
 
398.4

Deferred income taxes, net
6.5

 
21.9

 
5.7

 
(1.3
)
 
32.8

Other assets
(4.5
)
 
26.3

 
114.0

 
(63.2
)
 
72.6

Assets of discontinued operations

 
(10.7
)
 
119.4

 

 
108.7

Total current assets
(1,046.7
)
 
1,335.9

 
857.4

 
(35.0
)
 
1,111.6

PROPERTY, PLANT AND EQUIPMENT, net

 
235.2

 
54.2

 

 
289.4

GOODWILL

 
131.8

 
91.9

 

 
223.7

DEFERRED INCOME TAXES
(1.7
)
 
81.9

 
16.8

 
(9.7
)
 
87.3

OTHER ASSETS, net(1)
2,151.5

 
547.8

 
24.2

 
(2,642.0
)
 
81.5

TOTAL ASSETS
$
1,103.1

 
$
2,332.6

 
$
1,044.5

 
$
(2,686.7
)
 
$
1,793.5

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
Short-term debt
$
97.3

 
$

 
$
(50.2
)
 
$
(16.0
)
 
$
31.1

Current maturities of long-term debt

 
0.2

 
0.1

 

 
0.3

Accounts payable
10.1

 
133.5

 
87.3

 
46.7

 
277.6

Accrued expenses
4.8

 
191.8

 
62.2

 
(0.1
)
 
258.7

Income taxes payable
(20.9
)
 
36.1

 
41.8

 
(48.5
)
 
8.5

Liabilities of discontinued operations

 
49.7

 
12.5

 

 
62.2

Total current liabilities
91.3

 
411.3

 
153.7

 
(17.9
)
 
638.4

LONG-TERM DEBT
433.0

 
16.2

 
100.2

 
(99.8
)
 
449.6

POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS

 
17.1

 

 

 
17.1

PENSIONS

 
104.4

 
11.8

 

 
116.2

OTHER LIABILITIES
0.7

 
58.9

 
14.2

 
(11.0
)
 
62.8

Total liabilities
525.0

 
607.9

 
279.9

 
(128.7
)
 
1,284.1

COMMITMENTS AND CONTINGENCIES
 
 
 
 
 
 
 
 
 
TOTAL STOCKHOLDERS’ EQUITY
578.1

 
1,724.7

 
764.6

 
(2,558.0
)
 
509.4

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,103.1

 
$
2,332.6

 
$
1,044.5

 
$
(2,686.7
)
 
$
1,793.5


(1)
OTHER ASSETS, net consists primarily of Investments in Subsidiaries which eliminate upon consolidation.








Condensed Consolidating Statements of Operations
For the Three Months Ended September 30, 2012
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
NET SALES
$

 
$
654.5

 
$
214.3

 
$
(59.1
)
 
$
809.7

COST OF GOODS SOLD

 
499.7

 
163.9

 
(58.8
)
 
604.8

Gross profit

 
154.8

 
50.4

 
(0.3
)
 
204.9

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses

 
99.2

 
26.8

 
(0.1
)
 
125.9

(Gains) losses and other expenses, net
0.1

 
(1.0
)
 
1.2

 

 
0.3

Restructuring charges

 
0.1

 
0.3

 

 
0.4

(Income) loss from equity method investments
(38.4
)
 
(6.5
)
 
(1.9
)
 
44.2

 
(2.6
)
Operational income (loss) from continuing operations
38.3

 
63.0

 
24.0

 
(44.4
)
 
80.9

INTEREST EXPENSE (INCOME), net
4.3

 
(0.6
)
 
0.7

 

 
4.4

OTHER EXPENSE, net

 

 

 

 

Income (loss) from continuing operations before income taxes
34.0

 
63.6

 
23.3

 
(44.4
)
 
76.5

(BENEFIT FROM) PROVISION FOR INCOME TAXES
(1.6
)
 
20.1

 
10.0

 
(1.7
)
 
26.8

Income (loss) from continuing operations
35.6

 
43.5

 
13.3

 
(42.7
)
 
49.7

Loss from discontinued operations

 
(12.6
)
 
(7.7
)
 

 
(20.3
)
Net income (loss)
$
35.6

 
$
30.9

 
$
5.6

 
$
(42.7
)
 
$
29.4

OTHER COMPREHENSIVE INCOME
$
5.6

 
$
4.6

 
$
17.4

 
$
1.9

 
$
29.5

Condensed Consolidating Statements of Operations
For the Nine Months Ended September 30, 2012
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
NET SALES
$

 
$
1,814.5

 
$
610.2

 
$
(160.2
)
 
$
2,264.5

COST OF GOODS SOLD
0.1

 
1,401.7

 
468.4

 
(159.6
)
 
1,710.6

Gross profit
(0.1
)
 
412.8

 
141.8

 
(0.6
)
 
553.9

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses

 
286.5

 
93.3

 

 
379.8

(Gains) losses and other expenses, net
(2.1
)
 
(0.4
)
 
2.7

 

 
0.2

Restructuring charges

 
2.6

 
0.5

 

 
3.1

(Income) loss from equity method investments
(81.9
)
 
(8.1
)
 
(6.9
)
 
88.1

 
(8.8
)
Operational income (loss) from continuing operations
83.9

 
132.2

 
52.2

 
(88.7
)
 
179.6

INTEREST EXPENSE (INCOME), net
13.1

 
(1.8
)
 
2.1

 

 
13.4

OTHER EXPENSE, net

 

 
0.1

 

 
0.1

Income (loss) from continuing operations before income taxes
70.8

 
134.0

 
50.0

 
(88.7
)
 
166.1

(BENEFIT FROM) PROVISION FOR INCOME TAXES
(4.0
)
 
45.1

 
16.7

 
(0.2
)
 
57.6

Income (loss) from continuing operations
74.8

 
88.9

 
33.3

 
(88.5
)
 
108.5

Loss from discontinued operations

 
(27.9
)
 
(12.6
)
 

 
(40.5
)
Net income (loss)
$
74.8

 
$
61.0

 
$
20.7

 
$
(88.5
)
 
$
68.0

OTHER COMPREHENSIVE INCOME
$
7.9

 
$
4.4

 
$
8.4

 
$
6.2

 
$
26.9

Condensed Consolidating Balance Sheets
As of December 31, 2011
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.0

 
$
9.7

 
$
34.4

 
$
(0.1
)
 
$
45.0

Accounts and notes receivable, net
(991.9
)
 
944.5

 
413.8

 
20.6

 
387.0

Inventories, net

 
217.1

 
105.5

 
(4.7
)
 
317.9

Deferred income taxes, net
4.7

 
22.0

 
8.4

 
(1.3
)
 
33.8

Other assets
1.6

 
16.5

 
106.9

 
(56.5
)
 
68.5

Assets of discontinued operations

 
55.7

 
104.8

 

 
160.5

Total current assets
(984.6
)
 
1,265.5

 
773.8

 
(42.0
)
 
1,012.7

PROPERTY, PLANT AND EQUIPMENT, net

 
248.2

 
52.5

 

 
300.7

GOODWILL

 
104.1

 
119.1

 

 
223.2

DEFERRED INCOME TAXES
0.2

 
82.0

 
18.2

 
(9.7
)
 
90.7

OTHER ASSETS, net(1)
2,174.1

 
531.2

 
22.1

 
(2,649.0
)
 
78.4

TOTAL ASSETS
$
1,189.7

 
$
2,231.0

 
$
985.7

 
$
(2,700.7
)
 
$
1,705.7

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
Short-term debt
$
112.1

 
$

 
$
(67.3
)
 
$
(40.1
)
 
$
4.7

Current maturities of long-term debt

 
0.6

 
0.2

 

 
0.8

Accounts payable
9.2

 
120.9

 
93.4

 
31.4

 
254.9

Accrued expenses
15.2

 
146.7

 
77.5

 

 
239.4

Income taxes payable
(29.9
)
 
28.0

 
24.7

 
(17.1
)
 
5.7

Liabilities of discontinued operations

 
54.9

 
16.7

 

 
71.6

Total current liabilities
106.6

 
351.1

 
145.2

 
(25.8
)
 
577.1

LONG-TERM DEBT
443.0

 
16.2

 
97.3

 
(96.9
)
 
459.6

POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS

 
18.6

 

 

 
18.6

PENSIONS

 
111.9

 
12.8

 

 
124.7

OTHER LIABILITIES
0.8

 
54.8

 
13.3

 
(11.0
)
 
57.9

Total liabilities
550.4

 
552.6

 
268.6

 
(133.7
)
 
1,237.9

COMMITMENTS AND CONTINGENCIES
 
 
 
 
 
 
 
 
 
TOTAL STOCKHOLDERS’ EQUITY
639.3

 
1,678.4

 
717.1

 
(2,567.0
)
 
467.8

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,189.7

 
$
2,231.0

 
$
985.7

 
$
(2,700.7
)
 
$
1,705.7


(1)
OTHER ASSETS, net consists primarily of Investments in Subsidiaries which eliminate upon consolidation.

Condensed Consolidating Statements of Operations
For the Three Months Ended September 30, 2011
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
NET SALES
$

 
$
629.0

 
$
226.9

 
$
(54.7
)
 
$
801.2

COST OF GOODS SOLD

 
496.4

 
173.6

 
(55.4
)
 
614.6

Gross profit

 
132.6

 
53.3

 
0.7

 
186.6

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses

 
87.9

 
34.5

 

 
122.4

Losses (gains) and other expenses, net
2.3

 
0.8

 
(0.5
)
 

 
2.6

Restructuring charges

 
7.1

 
0.9

 

 
8.0

(Income) loss from equity method investments
(47.6
)
 
(11.1
)
 
(2.1
)
 
57.8

 
(3.0
)
Operational income (loss) from continuing operations
45.3

 
47.9

 
20.5

 
(57.1
)
 
56.6

INTEREST EXPENSE (INCOME), net
4.0

 
(0.9
)
 
1.0

 

 
4.1

OTHER EXPENSE, net

 

 

 

 

Income (loss) from continuing operations before income taxes
41.3

 
48.8

 
19.5

 
(57.1
)
 
52.5

(BENEFIT FROM) PROVISION FOR INCOME TAXES
(2.3
)
 
13.6

 
5.7

 
0.6

 
17.6

Income (loss) from continuing operations
43.6

 
35.2

 
13.8

 
(57.7
)
 
34.9

(Loss) income from discontinued operations

 
(2.4
)
 
1.3

 

 
(1.1
)
Net income (loss)
$
43.6

 
$
32.8

 
$
15.1

 
$
(57.7
)
 
$
33.8

OTHER COMPREHENSIVE LOSS
$
(14.5
)
 
$
(12.5
)
 
$
(46.4
)
 
$
(2.7
)
 
$
(76.1
)
Condensed Consolidating Statements of Operations
For the Nine Months Ended September 30, 2011
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
NET SALES
$

 
$
1,710.3

 
$
633.3

 
$
(151.2
)
 
$
2,192.4

COST OF GOODS SOLD
0.1

 
1,341.2

 
487.1

 
(152.5
)
 
1,675.9

Gross profit
(0.1
)
 
369.1

 
146.2

 
1.3

 
516.5

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses

 
264.1

 
108.8

 

 
372.9

Losses (gains) and other expenses, net
4.5

 
(0.4
)
 
(0.5
)
 

 
3.6

Restructuring charges

 
10.0

 
1.3

 

 
11.3

(Income) loss from equity method investments
(96.5
)
 
(16.8
)
 
(7.0
)
 
111.3

 
(9.0
)
Operational income (loss) from continuing operations
91.9

 
112.2

 
43.6

 
(110.0
)
 
137.7

INTEREST EXPENSE (INCOME), net
12.0

 
(2.7
)
 
3.2

 

 
12.5

OTHER EXPENSE, net

 

 
0.1

 

 
0.1

Income (loss) from continuing operations before income taxes
79.9

 
114.9

 
40.3

 
(110.0
)
 
125.1

(BENEFIT FROM) PROVISION FOR INCOME TAXES
(5.8
)
 
35.9

 
11.2

 
1.1

 
42.4

Income (loss) from continuing operations
85.7

 
79.0

 
29.1

 
(111.1
)
 
82.7

(Loss) income from discontinued operations

 
(11.9
)
 
0.8

 

 
(11.1
)
Net income (loss)
$
85.7

 
$
67.1

 
$
29.9

 
$
(111.1
)
 
$
71.6

OTHER COMPREHENSIVE LOSS
$
(21.2
)
 
$
(6.8
)
 
$
(29.6
)
 
$
(1.4
)
 
$
(59.0
)
Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2012
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
21.4

 
$
83.4

 
$
(40.4
)
 
$

 
$
64.4

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from the disposal of property, plant and equipment

 
0.1

 

 

 
0.1

Purchases of property, plant and equipment

 
(21.5
)
 
(6.5
)
 

 
(28.0
)
Net proceeds from sale of business

 
10.1

 

 

 
10.1

Net cash (used in) provided by discontinued operations

 
(0.4
)
 
0.1

 

 
(0.3
)
Net cash used in investing activities

 
(11.7
)
 
(6.4
)
 

 
(18.1
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Short-term borrowings, net

 

 
1.3

 

 
1.3

Asset securitization borrowings

 

 
480.0

 

 
480.0

Asset securitization payments

 

 
(455.0
)
 

 
(455.0
)
Long-term payments

 
(0.6
)
 
(0.3
)
 

 
(0.9
)
Borrowings from revolving credit facility
696.0

 

 

 

 
696.0

Payments on revolving credit facility
(706.0
)
 

 

 

 
(706.0
)
Proceeds from stock option exercises
0.3

 

 

 

 
0.3

Repurchases of common stock
(38.4
)
 

 

 

 
(38.4
)
Excess tax benefits related to share-based payments
1.7

 

 

 

 
1.7

Intercompany debt
(5.3
)
 
(3.9
)
 
9.2

 

 

Intercompany financing activity
57.8

 
(55.3
)
 
(2.5
)
 

 

Cash dividends paid
(27.5
)
 

 

 

 
(27.5
)
Net cash (used in) provided by financing activities
(21.4
)
 
(59.8
)
 
32.7

 

 
(48.5
)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 
11.9

 
(14.1
)
 

 
(2.2
)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS

 

 
6.0

 

 
6.0

CASH AND CASH EQUIVALENTS, beginning of period
1.0

 
9.7

 
34.3

 

 
45.0

CASH AND CASH EQUIVALENTS, end of period
$
1.0

 
$
21.6

 
$
26.2

 
$

 
$
48.8

Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2011
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
31.8

 
$
(64.2
)
 
$
30.2

 
$

 
$
(2.2
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from the disposal of property, plant and equipment

 
0.1

 
0.1

 

 
0.2

Purchases of property, plant and equipment

 
(22.4
)
 
(3.4
)
 

 
(25.8
)
Net proceeds from sale of business

 

 
0.6

 

 
0.6

Acquisition of business

 
(147.7
)
 

 

 
(147.7
)
Change in restricted cash

 

 
12.2

 

 
12.2

Net cash used in discontinued operations

 
(1.1
)
 
(0.1
)
 

 
(1.2
)
Net cash (used in) provided by investing activities

 
(171.1
)
 
9.4

 

 
(161.7
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Short-term borrowings, net

 

 
2.5

 

 
2.5

Asset securitization borrowings

 

 
220.0

 

 
220.0

Asset securitization payments

 

 
(220.0
)
 

 
(220.0
)
Long-term payments

 
(0.7
)
 

 

 
(0.7
)
Borrowings from revolving credit facility
1,090.0

 

 

 

 
1,090.0

Payments on revolving credit facility
(911.5
)
 

 

 

 
(911.5
)
Proceeds from stock option exercises
1.5

 

 

 

 
1.5

Repurchases of common stock
(90.9
)
 

 

 

 
(90.9
)
Excess tax benefits related to share-based payments
1.5

 

 

 

 
1.5

Intercompany debt
76.7

 
(2.3
)
 
(74.4
)
 

 

Intercompany financing activity
(252.7
)
 
242.7

 
10.0

 

 

Cash dividends paid
(27.2
)
 

 

 

 
(27.2
)
Net cash (used in) provided by financing activities
(112.6
)
 
239.7

 
(61.9
)
 

 
65.2

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(80.8
)
 
4.4

 
(22.3
)
 

 
(98.7
)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS

 

 
(3.4
)
 

 
(3.4
)
CASH AND CASH EQUIVALENTS, beginning of period
81.1

 
14.7

 
64.2

 

 
160.0

CASH AND CASH EQUIVALENTS, end of period
$
0.3

 
$
19.1

 
$
38.5

 
$

 
$
57.9