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Condensed Consolidating Financial Statements
12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [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 condensed consolidating financial statements.

The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. 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 December 31, 2018 and December 31, 2017 and for the years ended December 31, 2018, 2017 and 2016 are shown on the following pages.

Condensed Consolidating Balance Sheets
As of December 31, 2018
(In millions)

(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.8

 
$
15.4

 
$
29.1

 
$
—

 
$
46.3

Accounts and notes receivable, net
—

 
44.3

 
428.4

 
—

 
472.7

Inventories, net
—

 
411.4

 
103.9

 
(5.5
)
 
509.8

Other assets
3.3

 
36.2

 
54.7

 
(33.6
)
 
60.6

Total current assets
5.1

 
507.3

 
616.1

 
(39.1
)
 
1,089.4

Property, plant and equipment, net
—

 
293.3

 
118.6

 
(3.6
)
 
408.3

Goodwill
—

 
166.1

 
20.5

 
—

 
186.6

Investment in subsidiaries
1,311.9

 
357.8

 
(0.5
)
 
(1,669.2
)
 
—

Deferred income taxes
1.4

 
54.4

 
23.4

 
(12.2
)
 
67.0

Other assets, net
1.5

 
48.1

 
17.8

 
(1.5
)
 
65.9

Intercompany (payables) receivables, net
(715.5
)
 
675.8

 
142.6

 
(102.9
)
 
—

Total assets
$
604.4

 
$
2,102.8

 
$
938.5

 
$
(1,828.5
)
 
$
1,817.2

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Current maturities of long-term debt
29.4

 
2.8

 
268.6

 
—

 
300.8

Accounts payable
25.5

 
295.7

 
112.1

 
—

 
433.3

Accrued expenses
12.1

 
213.8

 
46.4

 
—

 
272.3

Income taxes payable
(38.5
)
 
40.6

 
50.8

 
(50.8
)
 
2.1

Total current liabilities
28.5

 
552.9

 
477.9

 
(50.8
)
 
1,008.5

Long-term debt
724.9

 
15.0

 
0.6

 
—

 
740.5

Pensions
—

 
75.1

 
7.7

 
—

 
82.8

Other liabilities
0.6

 
126.4

 
8.0

 
—

 
135.0

Total liabilities
754.0

 
769.4

 
494.2

 
(50.8
)
 
1,966.8

Commitments and contingencies

 

 

 

 

Total stockholders’ (deficit) equity
(149.6
)
 
1,333.4

 
444.3

 
(1,777.7
)
 
(149.6
)
Total liabilities and stockholders’ (deficit) equity
$
604.4

 
$
2,102.8

 
$
938.5

 
$
(1,828.5
)
 
$
1,817.2



Condensed Consolidating Balance Sheets
As of December 31, 2017
(In millions)
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.6

 
$
28.0

 
$
38.6

 
$
—

 
$
68.2

Accounts and notes receivable, net
—

 
35.3

 
471.2

 
—

 
506.5

Inventories, net
—

 
355.7

 
131.9

 
(3.4
)
 
484.2

Other assets
16.2

 
23.1

 
67.5

 
(28.4
)
 
78.4

Total current assets
17.8

 
442.1

 
709.2

 
(31.8
)
 
1,137.3

Property, plant and equipment, net
—

 
257.6

 
144.4

 
(4.2
)
 
397.8

Goodwill
—

 
134.9

 
65.6

 
—

 
200.5

Investment in subsidiaries
1,257.7

 
365.8

 
(0.6
)
 
(1,622.9
)
 
—

Deferred income taxes
3.9

 
69.1

 
33.6

 
(12.2
)
 
94.4

Other assets, net
2.1

 
41.3

 
19.6

 
(1.5
)
 
61.5

Intercompany (payables) receivables, net
(559.3
)
 
554.7

 
107.4

 
(102.8
)
 
—

Total assets
$
722.2

 
$
1,865.5

 
$
1,079.2

 
$
(1,775.4
)
 
$
1,891.5

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$
—

 
$
—

 
$
0.9

 
$
—

 
$
0.9

Current maturities of long-term debt
29.4

 
2.9

 
0.3

 
—

 
32.6

Accounts payable
21.3

 
228.0

 
99.3

 
—

 
348.6

Accrued expenses
3.1

 
209.4

 
57.8

 
—

 
270.3

Income taxes payable
(64.5
)
 
56.5

 
60.9

 
(50.8
)
 
2.1

Total current liabilities
(10.7
)
 
496.8

 
219.2

 
(50.8
)
 
654.5

Long-term debt
682.8

 
11.7

 
276.0

 
—

 
970.5

Pensions
—

 
74.7

 
9.8

 
—

 
84.5

Other liabilities
—

 
123.2

 
8.7

 
—

 
131.9

Total liabilities
672.1

 
706.4

 
513.7

 
(50.8
)
 
1,841.4

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Total stockholders’ equity (deficit)
50.1

 
1,159.1

 
565.5

 
(1,724.6
)
 
50.1

Total liabilities and stockholders’ equity (deficit)
$
722.2

 
$
1,865.5

 
$
1,079.2

 
$
(1,775.4
)
 
$
1,891.5





 






Condensed Consolidating Statements of Operations and Comprehensive Income
For the Year Ended December 31, 2018
(In millions)
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
$
—

 
$
3,473.2

 
$
1,129.6

 
$
(718.9
)
 
$
3,883.9

Cost of goods sold
—

 
2,500.6

 
988.7

 
(716.6
)
 
2,772.7

Gross profit
—

 
972.6

 
140.9

 
(2.3
)
 
1,111.2

Operating expenses:
 
 
 
 
 
 
 
 

Selling, general and administrative expenses
—

 
555.3

 
53.6

 
(0.7
)
 
608.2

Losses (gains) and other expenses, net
2.0

 
5.4

 
6.3

 
(0.3
)
 
13.4

Restructuring charges
—

 
1.1

 
1.9

 
—

 
3.0

Pension settlement
—

 
—

 
0.4

 
—

 
0.4

Loss (gain), net on sale of businesses and related property
—

 
40.3

 
(13.3
)
 
—

 
27.0

Insurance proceeds for lost profits
—

 
(27.4
)
 
—

 
—

 
(27.4
)
Gain from insurance recoveries, net of losses incurred
—

 
(10.9
)
 
—

 
—

 
(10.9
)
Income from equity method investments
(367.4
)
 
(70.3
)
 
(9.9
)
 
435.6

 
(12.0
)
Operating income
365.4

 
479.1

 
101.9

 
(436.9
)
 
509.5

Interest expense, net
9.0

 
18.5

 
10.8

 
—

 
38.3

Other expense (income), net
—

 
1.5

 
1.8

 
—

 
3.3

Income from continuing operations before income taxes
356.4


459.1

 
89.3

 
(436.9
)
 
467.9

Provision for income taxes
(2.6
)
 
92.1

 
18.0

 
0.1

 
107.6

Income from continuing operations
359.0

 
367.0

 
71.3

 
(437.0
)
 
360.3

Loss from discontinued operations
—

 
—

 
(1.3
)
 
—

 
(1.3
)
Net income
$
359.0

 
$
367.0

 
$
70.0

 
$
(437.0
)
 
$
359.0

Other comprehensive (loss) income
$
(15.4
)
 
$
(15.3
)
 
$
(0.7
)
 
$
—

 
$
(31.4
)
Comprehensive Income
$
343.6

 
$
351.7

 
$
69.3

 
$
(437.0
)
 
$
327.6



Condensed Consolidating Statements of Operations and Comprehensive Income
For the Year Ended December 31, 2017
(In millions)
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
3,295.8

 
$
1,144.2

 
$
(600.4
)
 
$
3,839.6

Cost of goods sold
—

 
2,359.6

 
953.6

 
(598.8
)
 
2,714.4

Gross profit
—

 
936.2

 
190.6

 
(1.6
)
 
1,125.2

Operating expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
—

 
553.6

 
85.0

 
(0.9
)
 
637.7

Losses (gains) and other expenses, net
2.0

 
3.3

 
1.9

 
(0.1
)
 
7.1

Restructuring charges
—

 
2.1

 
1.1

 
—

 
3.2

Loss (gain), net on sale of businesses and related property
—

 
1.1

 
—

 
—

 
1.1

(Income) loss from equity method investments
(324.3
)
 
(74.9
)
 
(14.5
)
 
395.3

 
(18.4
)
Operational income
322.3

 
451.0

 
117.1

 
(395.9
)
 
494.5

Interest expense, net
26.9

 
(2.7
)
 
6.4

 
—

 
30.6

Other income, net
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Income from continuing operations before income taxes
295.4

 
453.7

 
110.8

 
(395.9
)
 
464.0

Provision for income taxes
(10.3
)
 
136.2

 
31.2

 
(0.2
)
 
156.9

Income from continuing operations
305.7

 
317.5

 
79.6

 
(395.7
)
 
307.1

Loss from discontinued operations
—

 
—

 
(1.4
)
 
—

 
(1.4
)
Net income
$
305.7

 
$
317.5

 
$
78.2

 
$
(395.7
)
 
$
305.7

Other comprehensive income
$
1.7

 
$
5.5

 
$
30.5

 
$
—

 
$
37.7

Comprehensive income
$
307.4

 
$
323.0

 
$
108.7

 
$
(395.7
)
 
$
343.4


Condensed Consolidating Statements of Operations and Comprehensive Income
For the Year Ended December 31, 2016
(In millions)
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
$
—

 
$
3,117.6

 
$
728.0

 
$
(204.0
)
 
$
3,641.6

Cost of goods sold
—

 
2,203.8

 
564.5

 
(203.2
)
 
2,565.1

Gross profit
—

 
913.8

 
163.5

 
(0.8
)
 
1,076.5

Operating expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
—

 
524.3

 
96.7

 
—

 
621.0

(Gains) losses and other expenses, net
(3.3
)
 
9.7

 
5.1

 
(0.2
)
 
11.3

Restructuring charges
—


1.9

 
(0.1
)
 
—

 
1.8

Pension settlement
—

 
30.5

 
0.9

 
—

 
31.4

(Income) loss from equity method investments
(292.4
)
 
(40.7
)
 
(14.4
)
 
329.1

 
(18.4
)
Operational income
295.7

 
388.1

 
75.3

 
(329.7
)
 
429.4

Interest expense, net
24.4

 
(2.2
)
 
4.8

 
—

 
27.0

Other income, net
—

 
—

 
(0.3
)
 
—

 
(0.3
)
Income from continuing operations before income taxes
271.3

 
390.3

 
70.8

 
(329.7
)
 
402.7

Provision for income taxes
(6.5
)
 
108.2

 
22.6

 
(0.2
)
 
124.1

Income from continuing operations
277.8

 
282.1

 
48.2

 
(329.5
)
 
278.6

Loss from discontinued operations
—

 
—

 
(0.8
)
 
—

 
(0.8
)
Net income
$
277.8

 
$
282.1

 
$
47.4

 
$
(329.5
)
 
$
277.8

Other comprehensive income (loss)
$
14.0

 
$
8.5

 
$
(14.2
)
 
$
1.3

 
$
9.6

Comprehensive Income
$
291.8

 
$
290.6

 
$
33.2

 
$
(328.2
)
 
$
287.4





Condensed Consolidating Statements of Cash Flows
For the Year Ended December 31, 2018
(In millions)
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
$
53.7

 
$
477.9

 
$
(36.1
)
 
$
—

 
$
495.5

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from the disposal of property, plant and equipment
—

 
—

 
0.1

 
—

 
0.1

Purchases of property, plant and equipment
—

 
(76.0
)
 
(19.2
)
 
—

 
(95.2
)
Net proceeds from sale of businesses and related property
—

 
2.7

 
112.0

 
—

 
114.7

Insurance recoveries received for property damage incurred from natural disaster
—

 
10.9

 
—

 
—

 
10.9

Net cash used in investing activities
—

 
(62.4
)
 
92.9

 
—

 
30.5

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Short-term borrowings, net
—

 
—

 
—

 
—

 
—

Asset securitization borrowings
—

 
—

 
155.0

 
—

 
155.0

Asset securitization payments
—

 
—

 
(163.0
)
 
—

 
(163.0
)
Long-term debt payments
(30.0
)
 
(2.9
)
 
(0.1
)
 
—

 
(33.0
)
Borrowings from credit facility
2,435.9

 
—

 
—

 
—

 
2,435.9

Payments on credit facility
(2,365.0
)
 
—

 
—

 
—

 
(2,365.0
)
Proceeds from employee stock purchases
3.3

 
—

 
—

 
—

 
3.3

Repurchases of common stock to satisfy employee withholding tax obligations
(26.9
)
 
—

 
—

 
—

 
(26.9
)
Repurchases of common stock
(450.2
)
 
—

 
—

 
—

 
(450.2
)
Intercompany debt
(14.5
)
 
83.3

 
(68.8
)
 
—

 
—

Intercompany financing activity
487.8

 
(508.5
)
 
20.7

 
—

 
—

Cash dividends paid
(93.9
)
 
—

 
—

 
—

 
(93.9
)
Net cash provided by (used in) financing activities
(53.5
)
 
(428.1
)
 
(56.2
)
 
—

 
(537.8
)
Increase (decrease) in cash and cash equivalents
0.2

 
(12.6
)
 
0.6

 
—


(11.8
)
Effect of exchange rates on cash and cash equivalents
—

 
—

 
(10.1
)
 
—

 
(10.1
)
Cash and cash equivalents, beginning of year
1.6

 
28.0

 
38.6

 
—

 
68.2

Cash and cash equivalents, end of year
$
1.8

 
$
15.4

 
$
29.1

 
$
—

 
$
46.3



Condensed Consolidating Statements of Cash Flows
For the Year Ended December 31, 2017
(In millions)
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
$
467.4

 
$
31.1

 
$
(173.4
)
 
$
—

 
$
325.1

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
—

 
(70.7
)
 
(27.6
)
 
—

 
(98.3
)
Net cash used in investing activities
—

 
(70.6
)
 
(27.5
)
 
—

 
(98.1
)
Cash flows from financing activities:

 

 

 

 

Short-term borrowings, net
—

 
—

 
(1.5
)
 
—

 
(1.5
)
Asset securitization borrowings
—

 
—

 
315.0

 
—

 
315.0

Asset securitization payments
—

 
—

 
(89.0
)
 
—

 
(89.0
)
Borrowings from credit facility
2,376.5

 
—

 
—

 
—

 
2,376.5

Long-term debt payments
(200.0
)
 
(0.3
)
 
(0.6
)
 
—

 
(200.9
)
Payments on credit facility
(2,265.5
)
 
—

 
—

 
—

 
(2,265.5
)
Payments of deferred financing costs
—

 
—

 
(0.2
)
 
—

 
(0.2
)
Proceeds from employee stock purchases
3.1

 
—

 
—

 
—

 
3.1

Repurchases of common stock to satisfy employee withholding tax obligations
(26.1
)
 
—

 
—

 
—

 
(26.1
)
Repurchases of common stock
(250.0
)
 
—

 
—

 
—

 
(250.0
)
Intercompany debt
56.4

 
(34.9
)
 
(21.5
)
 
—

 
—

Intercompany financing activity
(81.7
)
 
85.6

 
(3.9
)
 
—

 
—

Cash dividends paid
(79.7
)
 
—

 
—

 
—

 
(79.7
)
Net cash provided by (used in) financing activities
(467.0
)
 
50.4

 
198.3

 
—

 
(218.3
)
Increase (decrease) in cash and cash equivalents
0.4

 
10.9

 
(2.6
)
 
—

 
8.7

Effect of exchange rates on cash and cash equivalents
—

 
—

 
9.3

 
—

 
9.3

Cash and cash equivalents, beginning of year
1.2

 
17.1

 
31.9

 
—

 
50.2

Cash and cash equivalents, end of year
$
1.6

 
$
28.0

 
$
38.6

 
$
—

 
$
68.2


Condensed Consolidating Statements of Cash Flows
For the Year Ended December 31, 2016
(In millions)
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
$
17.8

 
$
218.5

 
$
137.6

 
$
—

 
$
373.9

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from the disposal of property, plant and equipment
—

 
—

 
0.2

 
—

 
0.2

Purchases of property, plant and equipment
—

 
(71.5
)
 
(12.8
)
 
—

 
(84.3
)
Net cash used in investing activities
—

 
(71.5
)
 
(12.6
)
 
—

 
(84.1
)
Cash flows from financing activities:

 

 

 

 

Short-term borrowings, net
—

 
—

 
(2.4
)
 
—

 
(2.4
)
Asset securitization borrowings
—

 
—

 
145.0

 
—

 
145.0

Asset securitization payments
—

 
—

 
(295.0
)
 
—

 
(295.0
)
Long-term debt borrowings
350.0

 
—

 
—

 
—

 
350.0

Borrowings from credit facility
2,336.5

 
—

 
—

 
—

 
2,336.5

Long-term debt payments
(57.5
)
 
(0.9
)
 
(0.4
)
 
—

 
(58.8
)
Payments on credit facility
(2,346.0
)
 
—

 
—

 
—

 
(2,346.0
)
Payments of deferred financing costs
(4.2
)
 
—

 
—

 
—

 
(4.2
)
Proceeds from employee stock purchases
2.6

 
—

 
—

 
—

 
2.6

Repurchases of common stock to satisfy employee withholding tax obligations
(33.3
)
 
—

 
—

 
—

 
(33.3
)
Repurchases of common stock
(300.0
)
 
—

 
—

 
—

 
(300.0
)
Intercompany debt
30.0

 
(65.8
)
 
35.8

 
—

 
—

Intercompany financing activity
73.8

 
(71.0
)
 
(2.8
)
 
—

 
—

Cash dividends paid
(69.0
)
 
—

 
—

 
—

 
(69.0
)
Net cash provided by (used in) financing activities
(17.1
)
 
(137.7
)
 
(119.8
)
 
—

 
(274.6
)
Increase (decrease) in cash and cash equivalents
0.7

 
9.3

 
5.2

 
—

 
15.2

Effect of exchange rates on cash and cash equivalents
—

 
—

 
(3.9
)
 
—

 
(3.9
)
Cash and cash equivalents, beginning of year
0.5

 
7.8

 
30.6

 
—

 
38.9

Cash and cash equivalents, end of year
$
1.2

 
$
17.1

 
$
31.9

 
$
—

 
$
50.2