Condensed Guarantor and Non-Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2018

Guarantor and Non-Guarantor Financial Statement [Abstract]

Condensed Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

September 30, 2018

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	90.4	$	3.9	$	—		$	94.3
Short-term investments	—		88.4		—		—			88.4
Receivables:
Trade receivables, net	—		188.7		5.8		—			194.5
Intercompany loans receivable	43.0		0.5		1.8		(45.3		)	—
Other	—		20.1		4.3		—			24.4
Contract assets	—		48.2		2.8		—			51.0
Inventories	—		183.9		12.3		—			196.2
Prepaid expenses and other current assets	0.1		23.7		0.4		—			24.2
Total current assets	43.1		643.9		31.3		(45.3		)	673.0
Investments in and advances to subsidiaries	1,101.5		93.9		—		(1,195.4		)	—
Property, plant and equipment, net	—		561.4		34.0		—			595.4
Long-term intercompany loans receivable	—		—		12.4		(12.4		)	—
Deferred tax assets, net	—		37.5		—		4.7			42.2
Intangible assets, net	—		23.9		9.1		—			33.0
Goodwill	—		18.8		24.6		—			43.4
Other assets	—		39.0		—		—			39.0
Total	$	1,144.6	$	1,418.4	$	111.4	$	(1,248.4	)	$	1,426.0
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	3.6	$	106.3	$	10.5	$	—		$	120.4
Intercompany loans payable	—		44.9		0.4		(45.3		)	—
Accrued salaries, wages and related expenses	—		33.6		1.5		—			35.1
Other accrued liabilities	8.3		33.1		0.4		(4.8		)	37.0
Total current liabilities	11.9		217.9		12.8		(50.1		)	192.5
Net liabilities of Salaried VEBA	—		31.8		—		—			31.8
Deferred tax liabilities	—		—		4.3		—			4.3
Long-term intercompany loans payable	—		12.4		—		(12.4		)	—
Long-term liabilities	—		61.7		3.0		—			64.7
Long-term debt	370.2		—		—		—			370.2
Total liabilities	382.1		323.8		20.1		(62.5		)	663.5
Total stockholders' equity	762.5		1,094.6		91.3		(1,185.9		)	762.5
Total	$	1,144.6	$	1,418.4	$	111.4	$	(1,248.4	)	$	1,426.0

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

December 31, 2017

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	48.4	$	2.7	$	—		$	51.1
Short-term investments	—		183.7		—		—			183.7
Receivables:
Trade receivables, net	—		160.1		4.9		—			165.0
Intercompany receivables	22.8		0.1		0.7		(23.6		)	—
Other	—		14.7		0.8		—			15.5
Inventories	—		198.7		9.2		—			207.9
Prepaid expenses and other current assets	0.1		32.9		0.4		—			33.4
Total current assets	22.9		638.6		18.7		(23.6		)	656.6
Investments in and advances to subsidiaries	1,097.7		48.2		—		(1,145.9		)	—
Property, plant and equipment, net	—		541.2		30.2		—			571.4
Long-term intercompany receivables	—		—		12.4		(12.4		)	—
Deferred tax assets, net	—		67.3		—		4.7			72.0
Intangible assets, net	—		25.0		—		—			25.0
Goodwill	—		18.8		—		—			18.8
Other assets	—		41.4		—		—			41.4
Total	$	1,120.6	$	1,380.5	$	61.3	$	(1,177.2	)	$	1,385.2
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1.9	$	81.4	$	6.7	$	—		$	90.0
Intercompany payable	—		23.5		0.1		(23.6		)	—
Accrued salaries, wages and related expenses	—		41.0		1.6		—			42.6
Other accrued liabilities	2.8		46.2		1.0		(9.5		)	40.5
Total current liabilities	4.7		192.1		9.4		(33.1		)	173.1
Net liabilities of Salaried VEBA	—		31.9		—		—			31.9
Deferred tax liabilities	—		—		4.3		—			4.3
Long-term intercompany payable	—		12.4		—		(12.4		)	—
Long-term liabilities	—		58.0		2.0		—			60.0
Long-term debt	369.6		—		—		—			369.6
Total liabilities	374.3		294.4		15.7		(45.5		)	638.9
Total stockholders' equity	746.3		1,086.1		45.6		(1,131.7		)	746.3
Total	$	1,120.6	$	1,380.5	$	61.3	$	(1,177.2	)	$	1,385.2

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended September 30, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	385.9		$	33.7		$	(26.5	)	$	393.1
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	—			317.9			31.5			(26.1		)	323.3
Depreciation and amortization	—			10.5			0.5			—			11.0
Selling, general, administrative, research and development	1.0			22.8			0.5			(0.4		)	23.9
Total costs and expenses	1.0			351.2			32.5			(26.5		)	358.2
Operating (loss) income	(1.0		)	34.7			1.2			—			34.9
Other (expense) income:
Interest expense	(5.4		)	(0.4		)	—			0.1			(5.7		)
Other expense, net	—			0.6			0.2			(0.1		)	0.7
(Loss) income before income taxes	(6.4		)	34.9			1.4			—			29.9
Income tax provision	—			(9.0		)	(0.8		)	1.6			(8.2		)
Earnings in equity of subsidiaries	28.1			0.6			—			(28.7		)	—
Net income	$	21.7		$	26.5		$	0.6		$	(27.1	)	$	21.7
Comprehensive income	$	20.9		$	25.7		$	0.6		$	(26.3	)	$	20.9

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended September 30, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	325.9		$	26.3		$	(19.4	)	$	332.8
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items1	—			250.8			24.0			(18.4		)	256.4
Depreciation and amortization	—			9.7			0.5			—			10.2
Selling, general, administrative, research and development2	1.0			23.5			0.8			(0.6		)	24.7
Total costs and expenses	1.0			284.0			25.3			(19.0		)	291.3
Operating (loss) income	(1.0		)	41.9			1.0			(0.4		)	41.5
Other (expense) income:
Interest expense	(5.0		)	(0.4		)	—			0.1			(5.3		)
Other (expense) income, net	—			(0.4		)	0.3			(0.1		)	(0.2		)
(Loss) income before income taxes	(6.0		)	41.1			1.3			(0.4		)	36.0
Income tax provision	—			(18.0		)	(0.4		)	2.3			(16.1		)
Earnings in equity of subsidiaries	25.9			0.6			—			(26.5		)	—
Net income	$	19.9		$	23.7		$	0.9		$	(24.6	)	$	19.9
Comprehensive income	$	21.5		$	25.3		$	0.9		$	(26.2	)	$	21.5

____________________

¹  See Note 5 for discussion of our adoption of ASU 2017-12 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and now included within Cost of products sold, excluding depreciation and amortization and other items.

²  See Note 1 for discussion of our adoption of ASU 2017-07 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other income (expense).

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Nine Months Ended September 30, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,168.5		$	103.3		$	(75.3	)	$	1,196.5
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	—			962.9			93.5			(73.0		)	983.4
Depreciation and amortization	—			30.8			1.6			—			32.4
Selling, general, administrative, research and development	3.7			67.8			4.7			(2.3		)	73.9
Other operating charges, net	—			0.1			—			—			0.1
Total costs and expenses	3.7			1,061.6			99.8			(75.3		)	1,089.8
Operating (loss) income	(3.7		)	106.9			3.5			—			106.7
Other (expense) income:
Interest expense	(15.9		)	(1.5		)	—			0.4			(17.0		)
Other income, net	—			0.4			0.3			(0.4		)	0.3
(Loss) income before income taxes	(19.6		)	105.8			3.8			—			90.0
Income tax provision	—			(25.3		)	(1.4		)	4.8			(21.9		)
Earnings in equity of subsidiaries	87.7			2.4			—			(90.1		)	—
Net income	$	68.1		$	82.9		$	2.4		$	(85.3	)	$	68.1
Comprehensive income	$	65.4		$	80.2		$	2.4		$	(82.6	)	$	65.4

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Nine Months Ended September 30, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,019.7		$	85.4		$	(60.7	)	$	1,044.4
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items1	—			791.8			75.0			(58.1		)	808.7
Depreciation and amortization	—			27.7			1.6			—			29.3
Selling, general, administrative, research and development2	3.4			67.2			5.7			(1.6		)	74.7
Goodwill impairment	—			18.4			—			—			18.4
Total costs and expenses	3.4			905.1			82.3			(59.7		)	931.1
Operating (loss) income	(3.4		)	114.6			3.1			(1.0		)	113.3
Other (expense) income:
Interest expense	(15.3		)	(1.2		)	—			0.1			(16.4		)
Other income, net	—			0.1			0.5			(0.1		)	0.5
(Loss) income before income taxes	(18.7		)	113.5			3.6			(1.0		)	97.4
Income tax provision	—			(43.0		)	(0.9		)	7.1			(36.8		)
Earnings in equity of subsidiaries	79.3			1.8			—			(81.1		)	—
Net income	$	60.6		$	72.3		$	2.7		$	(75.0	)	$	60.6
Comprehensive income	$	64.6		$	76.3		$	2.7		$	(79.0	)	$	64.6

____________________

¹  See Note 5 for discussion of our adoption of ASU 2017-12 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and now included within Cost of products sold, excluding depreciation and amortization and other items.

²  See Note 1 for discussion of our adoption of ASU 2017-07 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other income (expense).

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions of dollars)

Nine Months Ended September 30, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	87.5		$	78.5		$	46.5		$	(100.0	)	$	112.5
Cash flows from investing activities:
Capital expenditures	—			(51.9		)	(1.2		)	—			(53.1		)
Purchase of available for sale securities	—			(111.9		)	—			—			(111.9		)
Purchase of equity securities	—			(0.9		)	—			—			(0.9		)
Proceeds from disposition of available for sale securities	—			208.7			—			—			208.7
Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received	—			—			(43.3		)	—			(43.3		)
Proceeds from disposal of property, plant and equipment	—			0.6			—			—			0.6
Intercompany loans receivable	(20.2		)	(0.4		)	(1.1		)	21.7			—
Net cash (used in) provided by investing activities	(20.2		)	44.2			(45.6		)	21.7			0.1
Cash flows from financing activities:
Repayment of capital lease	—			(0.5		)	—			—			(0.5		)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(6.9		)	—			—			—			(6.9		)
Repurchase of common stock	(31.9		)	—			—			—			(31.9		)
Cash dividends paid to Parent	—			(100.0		)	—			100.0			—
Cash dividends and dividend equivalents paid	(28.5		)	—			—			—			(28.5		)
Intercompany loans payable	—			21.4			0.3			(21.7		)	—
Net cash (used in) provided by financing activities	(67.3		)	(79.1		)	0.3			78.3			(67.8		)
Net increase in cash, cash equivalents and restricted cash during the period	—			43.6			1.2			—			44.8
Cash, cash equivalents and restricted cash at beginning of period	—			61.3			3.0			—			64.3
Cash, cash equivalents and restricted cash at end of period	$	—		$	104.9		$	4.2		$	—		$	109.1

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions of dollars)

Nine Months Ended September 30, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(12.8	)	$	137.4		$	6.9		$	—		$	131.5
Cash flows from investing activities:
Capital expenditures	—			(55.7		)	(0.4		)	—			(56.1		)
Purchase of available for sale securities	—			(196.0		)	—			—			(196.0		)
Proceeds from disposition of available for sale securities	—			237.2			—			—			237.2
Proceeds from disposal of property, plant, and equipment	—			0.6			—			—			0.6
Intercompany loans receivable	110.4			—			(5.6		)	(104.8		)	—
Net cash provided by (used in) investing activities	110.4			(13.9		)	(6.0		)	(104.8		)	(14.3		)
Cash flows from financing activities:
Repayment of capital lease	—			(0.2		)	—			—			(0.2		)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(4.5		)	—			—			—			(4.5		)
Repurchase of common stock	(66.7		)	—			—			—			(66.7		)
Cash dividends and dividend equivalents paid	(26.4		)	—			—			—			(26.4		)
Intercompany loans payable	—			(104.8		)	—			104.8			—
Net cash used in financing activities	(97.6		)	(105.0		)	—			104.8			(97.8		)
Net increase in cash, cash equivalents and restricted cash during the period	—			18.5			0.9			—			19.4
Cash, cash equivalents and restricted cash at beginning of period	—			65.1			2.6			—			67.7
Cash, cash equivalents and restricted cash at end of period	$	—		$	83.6		$	3.5		$	—		$	87.1