PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Disclosure [Abstract]



Products Corporation and Subsidiaries Condensed Consolidating Balance Sheets
As of September 30, 2019
	Products Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS
Cash and cash equivalents	$	1.2		$	3.2		$	56.3		$	—		$	60.7
Trade receivables, less allowances for doubtful accounts	85.6			130.1			239.2			—			454.9
Inventories	152.4			182.9			186.7			—			522.0
Prepaid expenses and other	234.2			27.4			48.6			—			310.2
Intercompany receivables	2,690.4			2,601.9			377.3			(5,669.6		)	—
Investment in subsidiaries	1,570.0			14.5			—			(1,584.5		)	—
Property, plant and equipment, net	212.5			94.1			107.1			—			413.7
Deferred income taxes	178.1			(20.4		)	(16.5		)	—			141.2
Goodwill	160.0			263.9			249.5			—			673.4
Intangible assets, net	13.3			353.3			130.1			—			496.7
Other assets	68.6			19.8			34.5			—			122.9
Total assets	$	5,366.3		$	3,670.7		$	1,412.8		$	(7,254.1	)	$	3,195.7
LIABILITIES AND STOCKHOLDER’S DEFICIENCY
Short-term borrowings	$	—		$	—		$	5.1		$	—		$	5.1
Current portion of long-term debt	363.4			—			0.1			—			363.5
Accounts payable	150.4			79.4			92.5			—			322.3
Accrued expenses and other	139.2			69.4			163.0			—			371.6
Intercompany payables	2,717.3			2,464.1			488.3			(5,669.7		)	—
Long-term debt	2,826.8			—			79.8			—			2,906.6
Other long-term liabilities	251.7			36.7			36.2			—			324.6
Total liabilities	6,448.8			2,649.6			865.0			(5,669.7		)	4,293.7
Stockholder’s deficiency	(1,082.5		)	1,021.1			547.8			(1,584.4		)	(1,098.0		)
Total liabilities and stockholder’s deficiency	$	5,366.3		$	3,670.7		$	1,412.8		$	(7,254.1	)	$	3,195.7



Products Corporation and Subsidiaries Condensed Consolidating Balance Sheets
As of December 31, 2018
	Products Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated

ASSETS
Cash and cash equivalents	$	7.3		$	6.6		$	73.4	$	—		$	87.3
Trade receivables, less allowances for doubtful accounts	89.7			103.5			238.1		—			431.3
Inventories	150.7			196.5			176.0		—			523.2
Prepaid expenses and other	214.7			25.0			60.0		—			299.7
Intercompany receivables	2,225.4			2,177.2			266.1		(4,668.7		)	—
Investment in subsidiaries	1,627.4			30.4			—		(1,657.8		)	—
Property, plant and equipment, net	197.1			57.5			99.9		—			354.5
Deferred income taxes	105.9			(6.9		)	15.8		—			114.8
Goodwill	159.9			263.9			250.1		—			673.9
Intangible assets, net	21.2			412.2			98.6		—			532.0
Other assets	71.8			23.4			35.6		—			130.8
Total assets	$	4,871.1		$	3,289.3		$	1,313.6	$	(6,326.5	)	$	3,147.5
LIABILITIES AND STOCKHOLDER’S DEFICIENCY
Short-term borrowings	$	—		$	—		$	9.3	$	—		$	9.3
Current portion of long-term debt	348.0			—			0.1		—			348.1
Accounts payable	148.8			88.6			94.7		—			332.1
Accrued expenses and other	152.6			87.0			195.1		—			434.7
Intercompany payables	2,226.8			2,028.9			413.0		(4,668.7		)	—
Long-term debt	2,644.6			—			83.1		—			2,727.7
Other long-term liabilities	153.4			11.2			64.1		—			228.7
Total liabilities	5,674.2			2,215.7			859.4		(4,668.7		)	4,080.6
Stockholder’s deficiency	(803.1		)	1,073.6			454.2		(1,657.8		)	(933.1		)
Total liabilities and stockholder’s deficiency	$	4,871.1		$	3,289.3		$	1,313.6	$	(6,326.5	)	$	3,147.5

Condensed Income Statement and Statement of Comprehensive Income



Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income
Three Months Ended September 30, 2019
	Products Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	118.4		$	174.8		$	303.9		$	(0.3	)	$	596.8
Cost of sales	64.9			88.1			116.3			(0.3		)	269.0
Gross profit	53.5			86.7			187.6			—			327.8
Selling, general and administrative expenses	90.5			82.1			133.7			—			306.3
Acquisition and integration costs	0.1			—			—			—			0.1
Restructuring charges and other, net	1.0			0.5			1.4			—			2.9
Operating (loss) income	(38.1		)	4.1			52.5			—			18.5
Other (income) expense:
Intercompany interest, net	(1.1		)	0.6			0.5			—			—
Interest expense	48.5			—			1.7			—			50.2
Amortization of debt issuance costs	3.7			—			—			—			3.7
Foreign currency losses (gains), net	0.9			(0.1		)	6.8			—			7.6
Miscellaneous, net	(8.4		)	(10.0		)	20.1			—			1.7
Other expense (income), net	43.6			(9.5		)	29.1			—			63.2
(Loss) income from continuing operations before income taxes	(81.7		)	13.6			23.4			—			(44.7		)
(Benefit from) provision for income taxes	(31.4		)	18.9			10.7			—			(1.8		)
(Loss) income from continuing operations, net of taxes	(50.3		)	(5.3		)	12.7			—			(42.9		)
Loss from discontinued operations, net of taxes	—			—			(0.3		)	—			(0.3		)
Equity in income (loss) of subsidiaries	30.8			0.1			—			(30.9		)	—
Net (loss) income	$	(19.5	)	$	(5.2	)	$	12.4		$	(30.9	)	$	(43.2	)
Other comprehensive income (loss)	0.5			3.9			(1.9		)	(2.0		)	0.5
Total comprehensive (loss) income	$	(19.0	)	$	(1.3	)	$	10.5		$	(32.9	)	$	(42.7	)



Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income
Three Months Ended September 30, 2018
	Products Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	149.3		$	196.5		$	308.5		$	1.1		$	655.4
Cost of sales	77.2			104.4			122.3			1.1			305.0
Gross profit	72.1			92.1			186.2			—			350.4
Selling, general and administrative expenses	99.6			98.0			141.5			—			339.1
Acquisition and integration costs	2.2			0.4			0.8			—			3.4
Restructuring charges and other, net	0.7			2.0			1.2			—			3.9
Operating (loss) income	(30.4		)	(8.3		)	42.7			—			4.0
Other (income) expense:
Intercompany interest, net	(0.8		)	0.6			0.2			—			—
Interest expense	44.7			—			1.7			—			46.4
Amortization of debt issuance costs	3.8			—			—			—			3.8
Foreign currency losses, net	0.5			—			0.6			—			1.1
Miscellaneous, net	(4.7		)	(16.1		)	21.2			—			0.4
Other expense (income), net	43.5			(15.5		)	23.7			—			51.7
(Loss) income from continuing operations before income taxes	(73.9		)	7.2			19.0			—			(47.7		)
(Benefit from) provision for income taxes	(41.5		)	1.4			1.9			—			(38.2		)
Loss from continuing operations, net of taxes	(32.4		)	5.8			17.1			—			(9.5		)
Loss from discontinued operations, net of taxes	—			—			(0.4		)	—			(0.4		)
Equity in (loss) income of subsidiaries	22.5			6.4			—			(28.9		)	—
Net (loss) income	$	(9.9	)	$	12.2		$	16.7		$	(28.9	)	$	(9.9	)
Other comprehensive (loss) income	(2.6		)	(0.5		)	(0.3		)	0.8			(2.6		)
Total comprehensive (loss) income	$	(12.5	)	$	11.7		$	16.4		$	(28.1	)	$	(12.5	)



Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income
Nine Months Ended September 30, 2019
	Products Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	429.4		$	428.9		$	865.4		$	(3.5	)	$	1,720.2
Cost of sales	205.1			217.3			331.8			(3.5		)	750.7
Gross profit	224.3			211.6			533.6			—			969.5
Selling, general and administrative expenses	329.5			238.7			399.9			—			968.1
Acquisition and integration costs	0.6			0.1			—			—			0.7
Restructuring charges and other, net	3.4			3.4			4.8			—			11.6
Operating (loss) income	(109.2		)	(30.6		)	128.9			—			(10.9		)
Other (income) expense:
Intercompany interest, net	(3.5		)	2.0			1.5			—			—
Interest expense	140.5			—			5.2			—			145.7
Amortization of debt issuance costs	10.4			—			—			—			10.4
Foreign currency losses, net	1.2			0.2			7.6			—			9.0
Miscellaneous, net	(26.4		)	(36.2		)	70.2			—			7.6
Other expense (income), net	122.2			(34.0		)	84.5			—			172.7
(Loss) income from continuing operations before income taxes	(231.4		)	3.4			44.4			—			(183.6		)
(Benefit from) provision for income taxes	(36.8		)	19.3			15.1			—			(2.4		)
(Loss) income from continuing operations, net of taxes	(194.6		)	(15.9		)	29.3			—			(181.2		)
Income from discontinued operations, net of taxes	—			—			2.0			—			2.0
Equity in income (loss) of subsidiaries	39.3			11.8			—			(51.1		)	—
Net (loss) income	$	(155.3	)	$	(4.1	)	$	31.3		$	(51.1	)	$	(179.2	)
Other comprehensive income (loss)	6.7			2.7			(1.8		)	(0.9		)	6.7
Total comprehensive (loss) income	$	(148.6	)	$	(1.4	)	$	29.5		$	(52.0	)	$	(172.5	)



Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income
Nine Months Ended September 30, 2018
	Products Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	478.3		$	485.3		$	860.8		$	(1.5	)	$	1,822.9
Cost of sales	231.9			239.4			337.4			(1.5		)	807.2
Gross profit	246.4			245.9			523.4			—			1,015.7
Selling, general and administrative expenses	326.6			314.0			441.5			—			1,082.1
Acquisition and integration costs	7.8			1.4			2.8			—			12.0
Restructuring charges and other, net	5.1			2.2			6.6			—			13.9
Loss on disposal of minority investment	20.1			—			—			—			20.1
Operating income	(113.2		)	(71.7		)	72.5			—			(112.4		)
Other (income) expenses:
Intercompany interest, net	(4.7		)	1.8			2.9			—			—
Interest expense	127.0			—			2.1			—			129.1
Amortization of debt issuance costs	9.1			—			—			—			9.1
Foreign currency losses, net	2.5			0.4			7.8			—			10.7
Miscellaneous, net	(15.0		)	(41.8		)	57.4			—			0.6
Other expense (income), net	118.9			(39.6		)	70.2			—			149.5
(Loss) income from continuing operations before income taxes	(232.1		)	(32.1		)	2.3			—			(261.9		)
(Benefit from) provision for income taxes	(49.7		)	6.5			1.2			—			(42.0		)
(Loss) income from continuing operations, net of taxes	(182.4		)	(38.6		)	1.1			—			(219.9		)
Loss from discontinued operations, net of taxes	—			—			(0.1		)	—			(0.1		)
Equity in (loss) income of subsidiaries	(37.6		)	1.6			—			36.0			—
Net (loss) income	$	(220.0	)	$	(37.0	)	$	1.0		$	36.0		$	(220.0	)
Other comprehensive (loss) income	(5.1		)	(3.3		)	(9.3		)	12.6			(5.1		)
Total comprehensive (loss) income	$	(225.1	)	$	(40.3	)	$	(8.3	)	$	48.6		$	(225.1	)

Condensed Cash Flow Statement



Products Corporation and Subsidiaries Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 2019
	Products Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(169.1	)	$	5.6		$	(3.3	)	$	—	$	(166.8	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used in investing activities	(10.9		)	(2.0		)	(7.1		)	—		(20.0		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in short-term borrowings and overdraft	(11.5		)	(7.2		)	(3.7		)	—		(22.4		)
Net borrowings under the Amended 2016 Revolving Credit Facility	13.4			—			—			—		13.4
Net borrowings under the 2019 Term Loan Facility	200.0			—			—			—		200.0
Repayments under the 2016 Term Loan Facility	(13.5		)	—			—			—		(13.5		)
Payment of financing costs	(12.2		)	—			(1.2		)	—		(13.4		)
Tax withholdings related to net share settlements of restricted stock units and awards	(1.6		)	—			—			—		(1.6		)
Other financing activities	(0.6		)	(0.1		)	(0.2		)	—		(0.9		)
Net cash provided by (used in) financing activities	174.0			(7.3		)	(5.1		)	—		161.6
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			0.4			(1.8		)	—		(1.4		)
Net decrease in cash, cash equivalents and restricted cash	(6.0		)	(3.3		)	(17.3		)	—		(26.6		)
Cash, cash equivalents and restricted cash at beginning of period	$	7.2		$	6.6		$	73.7		$	—	$	87.5
Cash, cash equivalents and restricted cash at end of period	$	1.2		$	3.3		$	56.4		$	—	$	60.9



Products Corporation and Subsidiaries Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 2018
	Products Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating activities	$	(196.0	)	$	(0.5	)	$	(100.2	)	$	—	$	(296.7	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used in investing activities	(24.4		)	(5.0		)	(12.2		)	—		(41.6		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease (increase) in short-term borrowings and overdraft	(3.6		)	7.3			(1.4		)	—		2.3
Net borrowings under the Amended 2016 Revolving Credit Facility	251.3			—			—			—		251.3
Net borrowings under the 2018 Foreign Asset-Based Term Loan	—			—			89.4			—		89.4
Repayments under the 2016 Term Loan Facility	(13.5		)	—			—			—		(13.5		)
Payments of financing costs	(4.7		)	—			(4.7		)	—		(9.4		)
Tax withholdings related to net share settlements of restricted stock units and awards	(3.6		)	—			—			—		(3.6		)
Other financing activities	0.3			—			(0.2		)	—		0.1
Net cash provided by financing activities	226.2			7.3			83.1			—		316.6
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			(0.1		)	(3.1		)	—		(3.2		)
Net increase (decrease) in cash, cash equivalents and restricted cash	5.8			1.7			(32.4		)	—		(24.9		)
Cash, cash equivalents and restricted cash at beginning of period	$	0.3		$	5.3		$	81.8		$	—	87.4
Cash, cash equivalents and restricted cash at end of period	$	6.1		$	7.0		$	49.4		$	—	$	62.5