20. Condensed Consolidated Financial Information

The Company's 100% owned domestic subsidiaries are required to jointly and severally, fully and unconditionally guarantee the notes issued in 2005. For further information on the guarantee see Note 3, Long-term Debt and Short-term Borrowings. Rather than filing separate financial statements for each guarantor subsidiary with the Securities and Exchange Commission, the Company has elected to present the following consolidating financial statements, which detail the results of operations for the years ended December 31, 2011, 2010 and 2009, cash flows for the years ended December 31, 2011, 2010 and 2009 and financial position as of December 31, 2011 and 2010 of the Company and its guarantor and non-guarantor subsidiaries (in each case carrying investments under the equity method), and the eliminations necessary to arrive at the reported amounts included in the consolidated financial statements of the Company.

Condensed Consolidating Balance Sheets


	December 31, 2011
*(in millions of dollars)*	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	62.0		$	(1.2	)	$	60.4		$	—		$	121.2
Accounts receivable, net		—			90.6			178.9			—			269.5
Inventories		—			97.5			100.2			—			197.7
Receivables from affiliates		19.7			0.8			41.2			(61.7	)		—
Deferred income taxes		2.4			—			5.2			—			7.6
Other current assets		5.5			9.3			12.1			—			26.9

Total current assets		89.6			197.0			398.0			(61.7	)		622.9
Property, plant and equipment, net		0.6			75.6			71.0			—			147.2
Deferred income taxes		1.0			—			15.7			—			16.7
Goodwill		—			70.5			64.5			—			135.0
Identifiable intangibles, net		57.8			50.3			22.3			—			130.4
Other non-current assets		13.7			5.2			45.6			—			64.5
Investment in, long term receivable from affiliates		727.8			722.0			200.0			(1,649.8	)		—

Total assets	$	890.5		$	1,120.6		$	817.1		$	(1,711.5	)	$	1,116.7

Liabilities and Stockholders' (Deficit) Equity
Current liabilities:
Current portion of long-term debt	$	0.1		$	0.1		$	—		$	—		$	0.2
Accounts payable		—			52.6			74.5			—			127.1
Accrued compensation		1.7			9.6			12.9			—			24.2
Accrued customer programs liabilities		—			23.4			43.4			—			66.8
Accrued interest		20.2			—			—			—			20.2
Other current liabilities		3.3			21.2			42.0			—			66.5
Payables to affiliates		9.0			223.3			262.1			(494.4	)		—
Liabilities of discontinued operations		—			0.1			1.0			—			1.1

Total current liabilities		34.3			330.3			435.9			(494.4	)		306.1
Long-term debt		668.5			0.3			—			—			668.8
Long-term notes payable to affiliates		178.2			16.4			—			(194.6	)		—
Deferred income taxes		64.1			—			21.5			—			85.6
Pension and post retirement benefit obligations		5.1			54.7			46.3			—			106.1
Other non-current liabilities		2.2			4.8			5.0			—			12.0

Total liabilities		952.4			406.5			508.7			(689.0	)		1,178.6

Stockholder's (deficit) equity:
Common stock		0.6			562.0			75.3			(637.3	)		0.6
Treasury stock		(1.7	)		—			—			—			(1.7	)
Paid-in capital		1,407.4			696.4			341.9			(1,038.3	)		1,407.4
Accumulated other comprehensive loss		(131.0	)		(65.8	)		(29.8	)		95.6			(131.0	)
Accumulated deficit		(1,337.2	)		(478.5	)		(79.0	)		557.5			(1,337.2	)

Total stockholders' (deficit) equity		(61.9	)		714.1			308.4			(1,022.5	)		(61.9	)

Total liabilities and stockholders' (deficit) equity	$	890.5		$	1,120.6		$	817.1		$	(1,711.5	)	$	1,116.7

Condensed Consolidating Balance Sheets


	December 31, 2010
*(in millions of dollars)*	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	39.5		$	(0.4	)	$	44.1		$	—		$	83.2
Accounts receivable, net		—			87.5			187.3			—			274.8
Inventories		—			100.2			105.7			—			205.9
Receivables from affiliates		235.5			58.5			38.1			(332.1	)		—
Deferred income taxes		3.0			—			6.1			—			9.1
Other current assets		2.5			11.6			9.9			—			24.0
Assets of discontinued operations		—			—			23.7			—			23.7

Total current assets		280.5			257.4			414.9			(332.1	)		620.7
Property, plant and equipment, net		1.0			85.6			76.6			—			163.2
Deferred income taxes		0.9			—			9.7			—			10.6
Goodwill		—			70.5			66.4			—			136.9
Identifiable intangibles, net		57.9			53.8			25.3			—			137.0
Other non-current assets		21.6			6.3			43.9			—			71.8
Investment in, long-term receivable from, affiliates		616.9			711.4			200.0			(1,528.3	)		—
Assets of discontinued operations		—			—			9.4			—			9.4

Total assets	$	978.8		$	1,185.0		$	846.2		$	(1,860.4	)	$	1,149.6

Liabilities and Stockholders' (Deficit) Equity
Current liabilities
Current portion of long-term debt	$	0.1		$	0.1		$	—		$	—		$	0.2
Accounts payable		—			60.4			49.9			—			110.3
Accrued compensation		1.6			10.0			12.3			—			23.9
Accrued customer program liabilities		—			24.6			48.2			—			72.8
Accrued interest		22.0			—			—			—			22.0
Other current liabilities		2.2			23.7			58.2			—			84.1
Payables to affiliates		60.9			427.2			277.5			(765.6	)		—
Liabilities of discontinued operations		—			0.6			14.0			—			14.6

Total current liabilities		86.8			546.6			460.1			(765.6	)		327.9
Long-term debt		727.1			0.3			—			—			727.4
Long-term notes payable to affiliates		178.2			16.4			1.7			(196.3	)		—
Deferred income taxes		59.6			—			21.6			—			81.2
Pension and other post retirement benefit obligations		4.7			39.9			30.3			—			74.9
Other non-current liabilities		2.2			5.6			4.9			—			12.7
Liabilities of discontinued operations		—			—			5.3			—			5.3

Total liabilities		1,058.6			608.8			523.9			(961.9	)		1,229.4

Stockholders' (deficit) equity
Common stock		0.6			561.3			76.0			(637.3	)		0.6
Treasury stock		(1.5	)		—			—			—			(1.5	)
Paid-in capital		1,401.1			632.0			336.4			(968.4	)		1,401.1
Accumulated other comprehensive loss		(86.1	)		(47.0	)		(4.4	)		51.4			(86.1	)
Accumulated deficit		(1,393.9	)		(570.1	)		(85.7	)		655.8			(1,393.9	)

Total stockholders' (deficit) equity		(79.8	)		576.2			322.3			(898.5	)		(79.8	)

Total liabilities and stockholders' (deficit) equity	$	978.8		$	1,185.0		$	846.2		$	(1,860.4	)	$	1,149.6

Consolidating Statement of Operations


	Year Ended December 31, 2011
*(in millions of dollars)*	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Unaffiliated sales	$	—		$	621.3		$	697.1		$	—		$	1,318.4
Affiliated sales		—			18.9			5.9			(24.8	)		—

Net sales		—			640.2			703.0			(24.8	)		1,318.4
Cost of products sold		—			460.8			467.7			(24.8	)		903.7

Gross profit		—			179.4			235.3			—			414.7
Advertising, selling, general and administrative expenses		30.4			137.4			126.1			—			293.9
Amortization of intangibles		0.1			3.5			2.7			—			6.3
Restructuring income		—			—			(0.7	)		—			(0.7	)

Operating income (loss)		(30.5	)		38.5			107.2			—			115.2
Interest expense (income) from affiliates		(1.1	)		—			1.1			—			—
Interest expense, net		67.4			9.8			—			—			77.2
Equity in (earnings) losses of joint ventures		—			0.5			(9.0	)		—			(8.5	)
Other expense (income), net		3.1			(22.8	)		23.3			—			3.6

Income (loss) before taxes and earnings of wholly owned subsidiaries		(99.9	)		51.0			91.8			—			42.9
Income tax expense		6.0			—			18.3			—			24.3

Income (loss) from continuing operations		(105.9	)		51.0			73.5			—			18.6
Income (loss) from discontinued operations, net of income taxes		—			(0.4	)		38.5			—			38.1

Income (loss) before earnings of wholly owned subsidiaries		(105.9	)		50.6			112.0			—			56.7
Earnings of wholly owned subsidiaries		162.6			103.3			—			(265.9	)		—

Net income	$	56.7		$	153.9		$	112.0		$	(265.9	)	$	56.7

Consolidating Statement of Operations


	Year Ended December 31, 2010
*(in millions of dollars)*	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Unaffiliated sales	$	—		$	632.9		$	651.7		$	—		$	1,284.6
Affiliated sales		—			18.5			5.2			(23.7	)		—

Net sales		—			651.4			656.9			(23.7	)		1,284.6
Cost of products sold		—			463.2			448.0			(23.7	)		887.5

Gross profit		—			188.2			208.9			—			397.1
Advertising, selling, general and administrative expenses		22.8			141.9			116.5			—			281.2
Amortization of intangibles		0.1			3.8			2.8			—			6.7
Restructuring income		—			(0.4	)		(0.1	)		—			(0.5	)

Operating income (loss)		(22.9	)		42.9			89.7			—			109.7
Interest (income) expense from affiliates		(1.2	)		—			1.2			—			—
Interest expense, net		67.5			10.2			0.6			—			78.3
Equity in (earnings) losses of joint ventures		—			0.3			(8.6	)		—			(8.3	)
Other (income) expense, net		(0.2	)		(18.1	)		19.5			—			1.2

Income (loss) from continuing operations before income taxes and earnings of wholly owned subsidiaries		(89.0	)		50.5			77.0			—			38.5
Income tax expense (benefit)		6.5			(0.4	)		24.6			—			30.7

Income (loss) from continuing operations		(95.5	)		50.9			52.4			—			7.8
Income from discontinued operations, net of income taxes		—			0.6			4.0			—			4.6

Income (loss) before earnings of wholly owned subsidiaries		(95.5	)		51.5			56.4			—			12.4
Earnings of wholly owned subsidiaries		107.9			47.8			—			(155.7	)		—

Net income	$	12.4		$	99.3		$	56.4		$	(155.7	)	$	12.4

Consolidated Statement of Operations


	Year Ended December 31, 2009
*(in millions of dollars)*	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Unaffiliated sales	$	—		$	619.6		$	613.7		$	—		$	1,233.3
Affiliated sales		—			22.7			3.4			(26.1	)		—

Net sales		—			642.3			617.1			(26.1	)		1,233.3
Cost of products sold		—			473.7			421.1			(26.1	)		868.7

Gross profit		—			168.6			196.0			—			364.6
Advertising, selling, general and administrative expenses		18.6			131.3			113.1			—			263.0
Amortization of intangibles		0.1			4.1			2.9			—			7.1
Restructuring charges		0.1			3.7			13.6			—			17.4
Intangible asset impairment charges		—			0.8			0.9			—			1.7

Operating income (loss)		(18.8	)		28.7			65.5			—			75.4
Interest (income) expense from affiliates		(0.1	)		(0.5	)		0.6			—			—
Interest expense, net		53.3			7.2			6.5			—			67.0
Equity in (earnings) losses of joint ventures		—			0.2			(4.6	)		—			(4.4	)
Other (income) expense, net		4.0			(16.0	)		17.4			—			5.4

Income (loss) from continuing operations before income taxes and earnings (losses) of wholly owned subsidiaries		(76.0	)		37.8			45.6			—			7.4
Income tax expense (benefit)		110.5			(2.4	)		17.9			—			126.0

Income (loss) from continuing operations		(186.5	)		40.2			27.7			—			(118.6	)
Income (loss) from discontinued operations, net of income taxes		—			(15.1	)		7.6			—			(7.5	)

Income (loss) before earnings (losses) of wholly owned subsidiaries		(186.5	)		25.1			35.3			—			(126.1	)
Earnings (losses) of wholly owned subsidiaries		60.4			(13.3	)		—			(47.1	)		—

Net income (loss)	$	(126.1	)	$	11.8		$	35.3		$	(47.1	)	$	(126.1	)

Condensed Consolidating Statement of Cash Flows


	Year Ended December 31, 2011
*(in millions of dollars)*	Parent			Guarantors			Non-Guarantors			Consolidated
Net cash provided (used) by operating activities	$	(95.5	)	$	66.6		$	90.7		$	61.8

Investing activities:
Additions to property, plant and equipment		—			(6.6	)		(6.9	)		(13.5	)
Assets acquired		—			(0.6	)		(0.8	)		(1.4	)
Proceeds from the sale of discontinued operations		—			0.4			53.1			53.5
Proceeds from the disposition of assets		—			—			1.4			1.4

Net cash provided (used) by investing activities.		—			(6.8	)		46.8			40.0
Financing activities:
Intercompany financing		111.9			(97.0	)		(14.9	)		—
Net dividends		69.2			36.5			(105.7	)		—
Proceeds from long-term borrowings		—			—			0.1			0.1
Repayments of long-term debt		(62.9	)		(0.1	)		—			(63.0	)
Exercise of stock options and other		(0.2	)		—			—			(0.2	)

Net cash provided (used) by financing activities.		118.0			(60.6	)		(120.5	)		(63.1	)
Effect of foreign exchange rate changes on cash		—			—			(0.7	)		(0.7	)
Net increase (decrease) in cash and cash equivalents		22.5			(0.8	)		16.3			38.0
Cash and cash equivalents:
Beginning of the period		39.5			(0.4	)		44.1			83.2

End of the period	$	62.0		$	(1.2	)	$	60.4		$	121.2

Condensed Consolidating Statement of Cash Flows


	Year Ended December 31, 2010
*(in millions of dollars)*	Parent			Guarantors			Non-Guarantors			Consolidated
Net cash provided (used) by operating activities:	$	(87.6	)	$	60.5		$	82.0		$	54.9

Investing activities:
Additions to property, plant and equipment		—			(5.3	)		(7.3	)		(12.6	)
Assets acquired		—			(1.1	)		—			(1.1	)
Proceeds (payments) from sale of discontinued operations		—			(4.1	)		0.4			(3.7	)
Proceeds from the disposition of assets		—			1.7			0.8			2.5

Net cash used by investing activities		—			(8.8	)		(6.1	)		(14.9	)
Financing activities:
Intercompany financing		110.9			(81.9	)		(29.0	)		—
Net dividends		1.4			31.4			(32.8	)		—
Proceeds from long-term borrowings		1.5			—			—			1.5
Repayments of long-term debt		—			(0.1	)		(0.1	)		(0.2	)
Repayments of short-term debt		—			—			(0.5	)		(0.5	)
Cost of debt issuance		(0.8	)		—			—			(0.8	)
Exercise of stock options and other		(0.1	)		—			—			(0.1	)

Net cash provided (used) by financing activities		112.9			(50.6	)		(62.4	)		(0.1	)
Effect of foreign exchange rate changes on cash		—			—			(0.3	)		(0.3	)
Net increase in cash and cash equivalents		25.3			1.1			13.2			39.6
Cash and cash equivalents:
Beginning of the period		14.2			(1.5	)		30.9			43.6

End of the period	$	39.5		$	(0.4	)	$	44.1		$	83.2

Condensed Consolidating Statement of Cash Flows


	Year Ended December 31, 2009
*(in millions of dollars)*	Parent			Guarantors			Non-Guarantors			Consolidated
Net cash provided (used) by operating activities:	$	(58.1	)	$	94.6		$	35.0		$	71.5

Investing activities:
Additions to property, plant and equipment		(0.4	)		(3.9	)		(6.0	)		(10.3	)
Assets acquired		(1.9	)		(0.9	)		(0.6	)		(3.4	)
Proceeds from sale of discontinued operations		—			2.1			7.1			9.2
Proceeds from the disposition of assets		—			—			0.6			0.6

Net cash provided (used) by investing activities		(2.3	)		(2.7	)		1.1			(3.9	)
Financing activities:
Intercompany financing		(17.6	)		(111.5	)		129.1			—
Net dividends		3.2			18.9			(22.1	)		—
Proceeds from long-term borrowings		463.1			—			6.2			469.3
Repayments of long-term debt		(270.1	)		—			(127.8	)		(397.9	)
Repayments of short-term debt		(46.0	)		—			(8.2	)		(54.2	)
Payment of Euro debt hedge		(40.8	)		—			—			(40.8	)
Cost of debt issuance		(17.4	)		—			(3.2	)		(20.6	)
Exercise of stock options and other		(0.3	)		—			—			(0.3	)

Net cash provided (used) by financing activities		74.1			(92.6	)		(26.0	)		(44.5	)
Effect of foreign exchange rate changes on cash		—			—			2.4			2.4
Net increase (decrease) in cash and cash equivalents		13.7			(0.7	)		12.5			25.5
Cash and cash equivalents:
Beginning of the period		0.5			(0.8	)		18.4			18.1

End of the period	$	14.2		$	(1.5	)	$	30.9		$	43.6