Condensed Guarantor and Non-Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2019

Guarantor and Non-Guarantor Financial Statement [Abstract]

Condensed Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

September 30, 2019

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	170.7	$	1.4	$	—		$	172.1
Short-term investments	—		25.3		—		—			25.3
Receivables:
Trade receivables, net	—		183.2		4.9		—			188.1
Intercompany loans receivable	50.6		1.4		5.5		(57.5		)	—
Other	—		24.3		1.8		—			26.1
Contract assets	—		43.6		2.5		—			46.1
Inventories	—		183.1		9.4		—			192.5
Prepaid expenses and other current assets	0.3		17.7		0.4		—			18.4
Total current assets	50.9		649.3		25.9		(57.5		)	668.6
Investments in and advances to subsidiaries	1,081.4		95.7		0.2		(1,177.3		)	—
Property, plant and equipment, net	—		580.6		33.7		—			614.3
Operating lease assets	—		26.3		—		—			26.3
Long-term intercompany loans receivable	—		—		17.0		(17.0		)	—
Deferred tax assets, net	—		3.3		—		3.0			6.3
Intangible assets, net	—		22.6		7.7		—			30.3
Goodwill	—		18.7		25.3		—			44.0
Other assets	—		36.2		0.2		0.1			36.5
Total	$	1,132.3	$	1,432.7	$	110.0	$	(1,248.7	)	$	1,426.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1.5	$	86.7	$	5.6	$	—		$	93.8
Intercompany loans payable	—		56.1		1.4		(57.5		)	—
Accrued salaries, wages and related expenses	—		30.3		1.6		—			31.9
Other accrued liabilities	8.3		46.1		0.5		(4.8		)	50.1
Total current liabilities	9.8		219.2		9.1		(62.3		)	175.8
Long-term portion of operating lease liabilities	—		25.6		—		—			25.6
Net liabilities of Salaried VEBA	—		32.8		—		—			32.8
Deferred tax liabilities	—		—		4.2		—			4.2
Long-term intercompany loans payable	—		17.0		—		(17.0		)	—
Long-term liabilities	—		61.8		3.6		—			65.4
Long-term debt	371.1		—		—		—			371.1
Total liabilities	380.9		356.4		16.9		(79.3		)	674.9
Total stockholders' equity	751.4		1,076.3		93.1		(1,169.4		)	751.4
Total	$	1,132.3	$	1,432.7	$	110.0	$	(1,248.7	)	$	1,426.3

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

December 31, 2018

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	122.6	$	3.0	$	—		$	125.6
Short-term investments	—		36.7		—		—			36.7
Receivables:
Trade receivables, net	—		174.0		5.8		—			179.8
Intercompany receivables	143.7		0.1		4.3		(148.1		)	—
Other	—		23.3		2.3		—			25.6
Contract assets	—		52.0		2.9		—			54.9
Inventories	—		203.0		12.1		—			215.1
Prepaid expenses and other current assets	0.1		18.4		0.4		—			18.9
Total current assets	143.8		630.1		30.8		(148.1		)	656.6
Investments in and advances to subsidiaries	974.7		94.9		0.2		(1,069.8		)	—
Property, plant and equipment, net	—		577.4		34.4		—			611.8
Long-term intercompany receivables	—		—		9.8		(9.8		)	—
Deferred tax assets, net	—		32.9		—		3.0			35.9
Intangible assets, net	—		23.6		8.8		—			32.4
Goodwill	—		18.8		25.2		—			44.0
Other assets	—		38.6		—		—			38.6
Total	$	1,118.5	$	1,416.3	$	109.2	$	(1,224.7	)	$	1,419.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4.9	$	109.6	$	6.9	$	—		$	121.4
Intercompany payable	—		148.0		0.1		(148.1		)	—
Accrued salaries, wages and related expenses	—		38.3		1.8		—			40.1
Other accrued liabilities	2.8		46.7		0.8		(6.3		)	44.0
Total current liabilities	7.7		342.6		9.6		(154.4		)	205.5
Net liabilities of Salaried VEBA	—		32.4		—		—			32.4
Deferred tax liabilities	—		—		4.2		—			4.2
Long-term intercompany payable	—		9.8		—		(9.8		)	—
Long-term liabilities	—		63.3		3.1		—			66.4
Long-term debt	370.4		—		—		—			370.4
Total liabilities	378.1		448.1		16.9		(164.2		)	678.9
Total stockholders' equity	740.4		968.2		92.3		(1,060.5		)	740.4
Total	$	1,118.5	$	1,416.3	$	109.2	$	(1,224.7	)	$	1,419.3

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended September 30, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	365.2		$	25.6		$	(15.9	)	$	374.9
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	—			293.4			20.7			(15.5		)	298.6
Depreciation and amortization	—			11.3			1.0			—			12.3
Selling, general, administrative, research and development	1.5			19.6			2.6			(0.4		)	23.3
Total costs and expenses	1.5			324.3			24.3			(15.9		)	334.2
Operating (loss) income	(1.5		)	40.9			1.3			—			40.7
Other (expense) income:
Interest expense	(5.3		)	(0.6		)	—			0.1			(5.8		)
Other (expense) income, net	—			(0.8		)	0.1			(0.1		)	(0.8		)
(Loss) income before income taxes	(6.8		)	39.5			1.4			—			34.1
Income tax provision	—			(10.0		)	(0.4		)	1.7			(8.7		)
Earnings in equity of subsidiaries	32.2			1.0			—			(33.2		)	—
Net income	$	25.4		$	30.5		$	1.0		$	(31.5	)	$	25.4
Comprehensive income	$	24.5		$	29.6		$	1.0		$	(30.6	)	$	24.5

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 income, 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)

Nine Months Ended September 30, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,117.8		$	78.2		$	(50.6	)	$	1,145.4
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	—			898.4			68.2			(49.4		)	917.2
Depreciation and amortization	—			33.3			3.0			—			36.3
Selling, general, administrative, research and development	4.0			67.4			5.5			(1.2		)	75.7
Other operating charges, net	—			0.1			—			—			0.1
Total costs and expenses	4.0			999.2			76.7			(50.6		)	1,029.3
Operating (loss) income	(4.0		)	118.6			1.5			—			116.1
Other (expense) income:
Interest expense	(15.9		)	(1.7		)	—			0.3			(17.3		)
Other (expense) income, net	—			(0.6		)	0.5			(0.3		)	(0.4		)
(Loss) income before income taxes	(19.9		)	116.3			2.0			—			98.4
Income tax provision	—			(30.0		)	(0.7		)	4.9			(25.8		)
Earnings in equity of subsidiaries	92.5			1.3			—			(93.8		)	—
Net income	$	72.6		$	87.6		$	1.3		$	(88.9	)	$	72.6
Comprehensive income	$	78.2		$	93.2		$	1.3		$	(94.5	)	$	78.2

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 CASH FLOWS

(In millions of dollars)

Nine Months Ended September 30, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(16.5	)	$	163.6		$	7.3		$	(0.5	)	$	153.9
Cash flows from investing activities:
Capital expenditures	—			(39.4		)	(1.3		)	—			(40.7		)
Purchase of available for sale securities	—			(56.3		)	—			—			(56.3		)
Purchase of equity securities	—			(0.7		)	—			—			(0.7		)
Proceeds from disposition of available for sale securities	—			68.2			—			—			68.2
Proceeds from disposal of property, plant and equipment	—			0.2			—			—			0.2
Intercompany loans receivable	93.1			(1.3		)	(8.4		)	(83.4		)	—
Net cash provided by (used in) investing activities	93.1			(29.3		)	(9.7		)	(83.4		)	(29.3		)
Cash flows from financing activities:
Repayment of finance lease	—			(1.1		)	—			—			(1.1		)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(6.2		)	—			—			—			(6.2		)
Repurchase of common stock	(40.6		)	—			—			—			(40.6		)
Cash dividends paid to Parent	—			—			(0.5		)	0.5			—
Cash dividends and dividend equivalents paid	(29.8		)	—			—			—			(29.8		)
Intercompany loans payable	—			(84.7		)	1.3			83.4			—
Net cash (used in) provided by financing activities	(76.6		)	(85.8		)	0.8			83.9			(77.7		)
Net increase (decrease) in cash, cash equivalents and restricted cash during the period	—			48.5			(1.6		)	—			46.9
Cash, cash equivalents and restricted cash at beginning of period	—			136.3			3.3			—			139.6
Cash, cash equivalents and restricted cash at end of period	$	—		$	184.8		$	1.7		$	—		$	186.5

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 disposition 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 finance 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