Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Financial Information

 Condensed Consolidating Financial Information

The Floating Rate Notes, 2023 Notes, 2026 Notes, and 2028 Notes (collectively, the "Notes") are fully and unconditionally guaranteed on a senior unsecured basis by Holdings. No subsidiaries are guarantors to any of the Notes.

The following condensed consolidating financial information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(d) of Regulation S-X promulgated under the Securities Act, presents the condensed consolidating financial information separately for:

(i) Holdings, as the parent company and parent guarantor of the Notes as further detailed in Note 16, Debt;

(ii) Spirit, as the subsidiary issuer of the Notes;

(iii) The Company’s subsidiaries, (the “Non-Guarantor Subsidiaries”), on a combined basis;

(iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among Holdings and the Non-Guarantor Subsidiaries, (b) eliminate the investments in the Company’s subsidiaries, and (c) record consolidating entries; and

(v) Holdings and its subsidiaries on a consolidated basis.

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Twelve Months Ended December 31, 2019

	Holdings			Spirit			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net revenues	$	—		$	7,116.7		$	1,420.5		$	(674.1	)	$	7,863.1
Operating costs and expenses
Cost of sales	—			6,197.0			1,263.5			(674.1		)	6,786.4
Selling, general and administrative	18.1			223.3			20.0			—			261.4
Impact of severe weather event	—			—			—			—			—
Research and development	—			47.0			7.5			—			54.5
Total operating costs and expenses	18.1			6,467.3			1,291.0			(674.1		)	7,102.3
Operating income (loss)	(18.1		)	649.4			129.5			—			760.8
Interest expense and financing fee amortization	—			(91.6		)	(3.9		)	3.6			(91.9		)
Other (expense) income, net	—			0.5			(2.7		)	(3.6		)	(5.8		)
Income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(18.1		)	558.3			122.9			—			663.1
Income tax benefit (provision)	3.9			(120.2		)	(16.5		)	—			(132.8		)
Income (loss) before equity in net income of affiliates and subsidiaries	(14.2		)	438.1			106.4			—			530.3
Equity in net income of affiliates	(0.2		)	—			(0.2		)	0.2			(0.2		)
Equity in net income of subsidiaries	544.5			106.4			—			(650.9		)	—
Net income	530.1			544.5			106.2			(650.7		)	530.1
Other comprehensive income	95.7			95.7			24.5			(120.2		)	95.7
Comprehensive income	$	625.8		$	640.2		$	130.7		$	(770.9	)	$	625.8

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Twelve Months Ended December 31, 2018

	Holdings			Spirit			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net revenues	$	—		$	6,487.3		$	1,361.2		$	(626.5	)	$	7,222.0
Operating costs and expenses
Cost of sales	—			5,541.4			1,221.0			(626.5		)	6,135.9
Selling, general and administrative	10.4			182.6			17.4			—			210.4
Impact of severe weather event	—			(10.0		)	—			—			(10.0		)
Research and development	—			37.5			5.0			—			42.5
Total operating costs and expenses	10.4			5,751.5			1,243.4			(626.5		)	6,378.8
Operating income (loss)	(10.4		)	735.8			117.8			—			843.2
Interest expense and financing fee amortization	—			(79.7		)	(5.2		)	4.9			(80.0		)
Other (expense) income, net	—			—			(2.1		)	(4.9		)	(7.0		)
Income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(10.4		)	656.1			110.5			—			756.2
Income tax benefit (provision)	1.9			(122.3		)	(19.4		)	—			(139.8		)
Income (loss) before equity in net income of affiliates and subsidiaries	(8.5		)	533.8			91.1			—			616.4
Equity in net income of affiliates	0.6			—			0.6			(0.6		)	0.6
Equity in net income of subsidiaries	624.9			91.0			—			(715.9		)	—
Net income	617.0			624.8			91.7			(716.5		)	617.0
Other comprehensive loss	(68.1		)	(68.1		)	(26.3		)	94.4			(68.1		)
Comprehensive income	$	548.9		$	556.7		$	65.4		$	(622.1	)	$	548.9

Condensed Consolidating Statements of Operations and Comprehensive Loss

For the Twelve Months Ended December 31, 2017

	Holdings			Spirit			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net revenues	$	—		$	6,236.4		$	1,362.3		$	(615.7	)	$	6,983.0
Operating costs and expenses
Cost of sales	—			5,592.2			1,218.8			(615.7		)	6,195.3
Selling, general and administrative	12.4			177.5			14.8			—			204.7
Impact of severe weather event	—			19.9			—			—			19.9
Research and development	—			27.8			3.4			—			31.2
Total operating costs and expenses	12.4			5,817.4			1,237.0			(615.7		)	6,451.1
Operating income (loss)	(12.4		)	419.0			125.3			—			531.9
Interest expense and financing fee amortization	—			(41.6		)	(5.7		)	5.6			(41.7		)
Other income (expense), net	—			49.6			0.4			(5.6		)	44.4
Income (loss) before income taxes and equity in net income of affiliates and subsidiaries	(12.4		)	427.0			120.0			—			534.6
Income tax benefit (provision)	4.7			(161.7		)	(23.0		)				(180.0		)
Income (loss) before equity in net income of affiliates and subsidiaries	(7.7		)	265.3			97.0			—			354.6
Equity in net income of affiliates	0.3			—			0.3			(0.3		)	0.3
Equity in net income of subsidiaries	362.3			97.0			—			(459.3		)	—
Net income	354.9			362.3			97.3			(459.6		)	354.9
Other comprehensive income	58.4			58.4			42.2			(100.6		)	58.4
Comprehensive income	$	413.3		$	420.7		$	139.5		$	(560.2	)	$	413.3

Condensed Consolidating Balance Sheet

December 31, 2019

	Holdings		Spirit		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Cash and cash equivalents	$	—	$	2,193.3	$	157.2	$	—		$	2,350.5
Restricted cash	—		0.3		—		—			0.3
Accounts receivable, net	—		565.4		301.2		(320.2		)	546.4
Inventory, net	—		786.8		332.0		—			1,118.8
Contract assets, short-term	—		458.8		69.5		—			528.3
Other current assets	—		93.5		5.2		—			98.7
Total current assets	—		4,098.1		865.1		(320.2		)	4,643.0
Property, plant and equipment, net	—		1,773.0		498.7		—			2,271.7
Right of use assets	—		41.2		7.7		—			48.9
Contract assets, long-term	—		6.4		—		—			6.4
Pension assets	—		424.2		24.9		—			449.1
Investment in subsidiary	1,761.9		838.4		—		(2,600.3		)	—
Deferred income taxes	—		106.3		0.2		—			106.5
Other assets	—		148.8		118.4		(186.8		)	80.4
Total assets	$	1,761.9	$	7,436.4	$	1,515.0	$	(3,107.3	)	$	7,606.0
Liabilities
Accounts payable	$	—	$	977.1	$	401.4	$	(320.2	)	$	1,058.3
Accrued expenses	—		210.0		30.2		—			240.2
Profit sharing	—		76.9		7.6		—			84.5
Current portion of long-term debt	—		48.4		1.8		—			50.2
Operating lease liabilities, short-term	—		5.3		0.7		—			6.0
Advance payments, short-term	—		21.6		—		—			21.6
Contract liabilities, short-term	—		158.3		—		—			158.3
Forward loss provision, short-term	—		83.9		—		—			83.9
Deferred revenue and other deferred credits, short-term	—		14.5		0.3		—			14.8
Deferred grant income liability — current	—		—		3.6		—			3.6
Other current liabilities	—		29.3		10.0		—			39.3
Total current liabilities	—		1,625.3		455.6		(320.2		)	1,760.7
Long-term debt	—		2,974.7		95.6		(86.2		)	2,984.1
Operating lease liabilities, long-term	—		36.0		7.0		—			43.0
Advance payments, long-term	—		333.3		—		—			333.3
Pension/OPEB obligation	—		35.7		—		—			35.7
Contract liabilities, long-term	—		356.3		—		—			356.3
Forward loss provision, long-term	—		163.5		—		—			163.5
Deferred grant income liability — non-current	—		9.2		19.8		—			29.0
Deferred revenue and other deferred credits, long-term	—		30.4		4.0		—			34.4
Deferred income taxes	—		—		8.3		—			8.3
Other non-current liabilities	—		190.1		6.3		(100.6		)	95.8
Total equity	1,761.9		1,681.9		918.4		(2,600.3		)	1,761.9
Total liabilities and shareholders’ equity	$	1,761.9	$	7,436.4	$	1,515.0	$	(3,107.3	)	$	7,606.0

Condensed Consolidating Balance Sheet

December 31, 2018

	Holdings		Spirit		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Cash and cash equivalents	$	—	$	705.0	$	68.6	$	—		$	773.6
Restricted cash	—		0.3		—		—			0.3
Accounts receivable, net	—		593.0		310.2		(358.1		)	545.1
Inventory, net	—		696.0		316.6		—			1,012.6
Contract assets, short-term	—		420.8		48.6		—			469.4
Other current assets	—		45.3		3.0		—			48.3
Total current assets	—		2,460.4		747.0		(358.1		)	2,849.3
Property, plant and equipment, net	—		1,670.8		496.8		—			2,167.6
Contract assets, long-term	—		54.1		—		—			54.1
Pension assets	—		307.0		19.7		—			326.7
Investment in subsidiary	1,238.0		699.0		—		(1,937.0		)	—
Deferred income taxes	—		188.0		17.0		—			205.0
Other assets	—		169.1		110.5		(196.4		)	83.2
Total assets	$	1,238.0	$	5,548.4	$	1,391.0	$	(2,491.5	)	$	5,685.9
Liabilities
Accounts payable	$	—	$	855.2	$	405.6	$	(358.2	)	$	902.6
Accrued expenses	—		276.7		36.3		0.1			313.1
Profit sharing	—		62.6		5.7		—			68.3
Current portion of long-term debt	—		30.5		0.9		—			31.4
Advance payments, short-term	—		2.2		—		—			2.2
Contract liabilities, short-term	—		157.3		0.6		—			157.9
Forward loss provision, short-term	—		12.4		—		—			12.4
Deferred revenue and other deferred credits, short-term	—		19.5		0.5		—			20.0
Deferred grant income liability — current	—		—		16.0		—			16.0
Other current liabilities	—		52.4		5.8		—			58.2
Total current liabilities	—		1,468.8		471.4		(358.1		)	1,582.1
Long-term debt	—		1,856.6		103.2		(95.8		)	1,864.0
Advance payments, long-term	—		231.9		—		—			231.9
Pension/OPEB obligation	—		34.6		—		—			34.6
Contract liabilities, long-term	—		369.8		—		—			369.8
Forward loss provision, long-term	—		170.6		—		—			170.6
Deferred grant income liability — non-current	—		5.9		22.1		—			28.0
Deferred revenue and other deferred credits, long-term	—		28.8		2.4		—			31.2
Deferred income taxes	—		—		0.8		—			0.8
Other non-current liabilities	—		223.3		12.1		(100.6		)	134.8
Total equity	1,238.0		1,158.1		779.0		(1,937.0		)	1,238.1
Total liabilities and shareholders’ equity	$	1,238.0	$	5,548.4	$	1,391.0	$	(2,491.5	)	$	5,685.9

Condensed Consolidating Statements of Cash Flows

For the Twelve Months Ended December 31, 2019

	Holdings				Spirit			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Operating activities
Net cash provided by operating activities	$	—			$	733.3		$	189.4				$	922.7
Investing activities
Purchase of property, plant and equipment	—				(184.0		)	(48.2		)			(232.2		)
Other	—				0.2			(7.9		)			(7.7		)
Net cash used in investing activities	—				(183.8		)	(56.1		)	—		(239.9		)
Financing activities
Proceeds from issuance of debt	—				250.0			—			—		250.0
Proceeds from revolving credit facility					900.0								900.0
Principal payments of debt	—				(12.5		)	(0.9		)	—		(13.4		)
Collection on (repayment of) intercompany debt	—				49.4			(49.4		)	—		—
Payments on term loan	—				(16.6		)	—			—		(16.6		)
Payments on revolving credit facility					(100.0		)						(100.0		)
Taxes paid related to net share settlement awards	—				(12.9		)	—			—		(12.9		)
Proceeds from issuance of ESPP stock	—				2.6			—			—		2.6
Proceeds (payments) from subsidiary for purchase of treasury stock	75.8				(75.8		)	—			—		—
Purchase of treasury stock	(75.8		)		—			—			—		(75.8		)
Proceeds (payments) from subsidiary for dividends paid	50.4				(50.1		)	(0.3		)	—		—
Dividends paid	(50.4		)		—			—			—		(50.4		)
Other					0.9			—			—		0.9
Net cash provided by (used in) financing activities	—				935.0			(50.6		)	—		884.4
Effect of exchange rate changes on cash and cash equivalents	—				—			5.9					5.9
Net increase (decrease) in cash, cash equivalents, and restricted cash for the period	—			—	1,484.5			88.6			—		1,573.1
Cash, cash equivalents, and restricted cash, beginning of period	—				725.5			68.6			—		794.1
Cash, cash equivalents, and restricted cash, end of period	$	—			$	2,210.0		$	157.2		$	—	$	2,367.2

Condensed Consolidating Statements of Cash Flows

For the Twelve Months Ended December 31, 2018

	Holdings			Spirit			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Operating activities
Net cash provided by operating activities	$	—		$	643.1		$	126.8		$	—	$	769.9
Investing activities
Purchase of property, plant and equipment	—			(230.5		)	(40.7		)			(271.2		)
Proceeds from sale of assets	—			2.8			0.6			—		3.4
Other	—			(0.5		)	0.5			—		—
Net cash used in investing activities	—			(228.2		)	(39.6		)	—		(267.8		)
Financing activities
Proceeds from issuance of debt	—			1,300.0			—			—		1,300.0
Principal payments of debt	—			(5.8		)	(0.9		)	—		(6.7		)
Collection on (repayment of) intercompany debt	—			75.9			(75.9		)	—		—
Payments on term loan	—			(256.3		)	—			—		(256.3		)
Payments on bonds	—			(300.0		)	—			—		(300.0		)
Debt issuance and financing costs	—			(23.2		)	—			—		(23.2		)
Taxes paid related to net share settlement awards	—			(15.6		)	—			—		(15.6		)
Proceeds from issuance of ESPP stock	—			2.1			—			—		2.1
Proceeds (payments) from subsidiary for purchase of treasury stock	805.8			(805.8		)	—			—		—
Purchase of treasury stock	(805.8		)	—			—			—		(805.8		)
Proceeds (payments) from subsidiary for dividends paid	48.0			(48.0		)	—			—		—
Dividends paid	(48.0		)	—			—			—		(48.0		)
Net cash used in financing activities	—			(76.7		)	(76.8		)	—		(153.5		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—					—
Net increase (decrease) in cash, cash equivalents, and restricted cash for the period	—			338.2			10.4			—		348.6
Cash, cash equivalents, and restricted cash, beginning of period	—			387.3			58.2			—		445.5
Cash, cash equivalents, and restricted cash, end of period	$	—		$	725.5		$	68.6		$	—	$	794.1

Condensed Consolidating Statements of Cash Flows

For the Twelve Months Ended December 31, 2017

	Holdings			Spirit			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Operating activities
Net cash provided by operating activities	$	—		$	450.5		$	123.2		$	—	$	573.7
Investing activities
Purchase of property, plant and equipment	—			(241.4		)	(31.7		)			(273.1		)
Proceeds from sale of assets	—			0.4			—			—		0.4
Other	—			(0.1		)	—			—		(0.1		)
Net cash used in investing activities	—			(241.1		)	(31.7		)	—		(272.8		)
Financing activities
Principal payments of debt	—			(1.2		)	(1.6		)	—		(2.8		)
Collection on (repayment of) intercompany debt	—			54.9			(54.9		)	—		—
Payments on term loan	—			(25.0		)	—			—		(25.0		)
Debt issuance and financing costs	—			(0.9		)	—			—		(0.9		)
Taxes paid related to net share settlement awards	—			(14.2		)	—			—		(14.2		)
Proceeds from financing under the New Markets Tax Credit Program	—			7.6			—			—		7.6
Proceeds (payments) from subsidiary for purchase of treasury stock	496.3			(496.3		)	—			—		—
Purchase of treasury stock	(496.3		)	—			—			—		(496.3		)
Proceeds (payments) from subsidiary for dividends paid	47.1			(47.1		)	—			—		—
Dividends paid	(47.1		)	—			—			—		(47.1		)
Net cash used in financing activities	—			(522.2		)	(56.5		)	—		(578.7		)
Effect of exchange rate changes on cash and cash equivalents	—			—			5.6			—		5.6
Net (decrease) increase in cash, cash equivalents, and restricted cash for the period	—			(312.8		)	40.6			—		(272.2		)
Cash, cash equivalents, and restricted cash, beginning of period	—			700.1			17.6			—		717.7
Cash, cash equivalents, and restricted cash, end of period	$	—		$	387.3		$	58.2		$	—	$	445.5