Financial Information for Subsidiary and Guarantor Parent [Text Block] |
Note 11. Financial Information for Subsidiary and Guarantor Parent The payment obligations under the $150 million 6.95% debentures due 2025 issued by Allegheny Ludlum, LLC (formerly known as Allegheny Ludlum Corporation) (the “Subsidiary”) are fully and unconditionally guaranteed by Allegheny Technologies Incorporated (the “Guarantor Parent”). In accordance with positions established by the Securities and Exchange Commission, the following financial information sets forth separately financial information with respect to the Subsidiary, the non-guarantor subsidiaries and the Guarantor Parent. The principal elimination entries eliminate investments in subsidiaries and certain intercompany balances and transactions. Investments in subsidiaries, which are eliminated in consolidation, are included in other assets on the consolidated balance sheets. Allegheny Technologies is the plan sponsor for the U.S. qualified defined benefit pension plan (the “Plan”) which covers certain current and former employees of the Subsidiary and the non-guarantor subsidiaries. As a result, the balance sheets presented for the Subsidiary and the non-guarantor subsidiaries do not include any Plan assets or liabilities, or the related deferred taxes. The Plan assets, liabilities and related deferred taxes and pension income or expense are recognized by the Guarantor Parent. Management and royalty fees charged to the Subsidiary and to the non-guarantor subsidiaries by the Guarantor Parent have been excluded solely for purposes of this presentation. Cash flows related to intercompany activity between the Guarantor Parent, the Subsidiary, and the non-guarantor subsidiaries are presented as financing activities on the condensed statements of cash flows. Allegheny Technologies Incorporated | | | | | Financial Information for Subsidiary and Guarantor Parent | | | | | Balance Sheets | | | | | September 30, 2012 | | | | | | | Guarantor | | | Non-guarantor | | | | | (In millions) | Parent | Subsidiary | Subsidiaries | Eliminations | Consolidated | Assets: | | | | | | | | | | | Cash and cash equivalents | $ | 3.1 | $ | 24.6 | $ | 253.3 | $ | - | $ | 281.0 | Accounts receivable, net | | 0.4 | | 218.7 | | 466.6 | | - | | 685.7 | Inventories, net | | - | | 256.8 | | 1,203.4 | | - | | 1,460.2 | Prepaid expenses and other current | | | | | | | | | | | | assets | | 0.7 | | 9.0 | | 48.2 | | - | | 57.9 | Total current assets | | 4.2 | | 509.1 | | 1,971.5 | | - | | 2,484.8 | Property, plant and equipment, net | | 2.9 | | 777.3 | | 1,702.1 | | - | | 2,482.3 | Cost in excess of net assets acquired | | - | | 112.1 | | 628.2 | | - | | 740.3 | Investments in subsidiaries and | | | | | | | | | | | | other assets | | 5,681.0 | | 206.5 | | 692.9 | | (6,209.0) | | 371.4 | Total assets | $ | 5,688.1 | $ | 1,605.0 | $ | 4,994.7 | $ | (6,209.0) | $ | 6,078.8 | | | | | | | | | | | | | Liabilities and stockholders’ equity: | | | | | | | | | | | Accounts payable | $ | 5.6 | $ | 192.1 | $ | 211.6 | $ | - | $ | 409.3 | Accrued liabilities | | 1,203.2 | | 358.3 | | 473.5 | | (1,698.3) | | 336.7 | Deferred income taxes | | 12.9 | | - | | - | | - | | 12.9 | Short-term debt and current portion | | | | | | | | | | | | of long-term debt | | - | | 0.1 | | 16.7 | | - | | 16.8 | Total current liabilities | | 1,221.7 | | 550.5 | | 701.8 | | (1,698.3) | | 775.7 | Long-term debt | | 1,252.5 | | 350.6 | | 59.4 | | (200.0) | | 1,462.5 | Accrued postretirement benefits | | - | | 200.2 | | 269.4 | | - | | 469.6 | Pension liabilities | | 423.0 | | 5.3 | | 59.7 | | - | | 488.0 | Deferred income taxes | | 21.8 | | - | | - | | - | | 21.8 | Other long-term liabilities | | 24.2 | | 20.2 | | 71.9 | | - | | 116.3 | Total liabilities | | 2,943.2 | | 1,126.8 | | 1,162.2 | | (1,898.3) | | 3,333.9 | Total stockholders’ equity | | 2,744.9 | | 478.2 | | 3,832.5 | | (4,310.7) | | 2,744.9 | Total liabilities and stockholders’ | | | | | | | | | | | | equity | $ | 5,688.1 | $ | 1,605.0 | $ | 4,994.7 | $ | (6,209.0) | $ | 6,078.8 |
Allegheny Technologies Incorporated | Financial Information for Subsidiary and Guarantor Parent | Statements of Income and Comprehensive Income | For the three months ended September 30, 2012 | | | Guarantor | | | Non-guarantor | | | | | (In millions) | Parent | Subsidiary | Subsidiaries | Eliminations | Consolidated | Sales | $ | - | $ | 483.6 | $ | 736.9 | $ | - | $ | 1,220.5 | Cost of sales | | 15.1 | | 453.8 | | 588.8 | | - | | 1,057.7 | Selling and administrative expenses | | 34.9 | | 10.8 | | 46.0 | | - | | 91.7 | Income (loss) before interest, other | | | | | | | | | | | | income and income taxes | | (50.0) | | 19.0 | | 102.1 | | - | | 71.1 | Interest expense, net | | (14.7) | | (2.7) | | 0.2 | | - | | (17.2) | Other income including | | | | | | | | | | | | equity in income of unconsolidated | | | | | | | | | | | | subsidiaries | | 118.8 | | (5.2) | | 7.8 | | (121.2) | | 0.2 | Income before income tax provision | | 54.1 | | 11.1 | | 110.1 | | (121.2) | | 54.1 | Income tax provision | | 16.8 | | 4.6 | | 35.9 | | (40.5) | | 16.8 | Net income | | 37.3 | | 6.5 | | 74.2 | | (80.7) | | 37.3 | Less: Net income attributable to | | | | | | | | | | | | noncontrolling interests | | 2.0 | | - | | 2.0 | | (2.0) | | 2.0 | Net income attributable to ATI | $ | 35.3 | $ | 6.5 | $ | 72.2 | $ | (78.7) | $ | 35.3 | | | | | | | | | | | | | Comprehensive income attributable to ATI | $ | 71.8 | $ | 6.3 | $ | 87.3 | $ | (93.6) | $ | 71.8 |
Allegheny Technologies Incorporated | Financial Information for Subsidiary and Guarantor Parent | Statements of Income and Comprehensive Income | For the nine months ended September 30, 2012 | | | Guarantor | | | Non-guarantor | | | | | (In millions) | Parent | Subsidiary | Subsidiaries | Eliminations | Consolidated | Sales | $ | - | $ | 1,614.2 | $ | 2,316.2 | $ | - | $ | 3,930.4 | Cost of sales | | 41.8 | | 1,488.7 | | 1,831.2 | | - | | 3,361.7 | Selling and administrative expenses | | 112.9 | | 33.2 | | 139.7 | | - | | 285.8 | Income (loss) before interest, other | | | | | | | | | | | | income and income taxes | | (154.7) | | 92.3 | | 345.3 | | - | | 282.9 | Interest expense, net | | (47.3) | | (7.9) | | (0.5) | | - | | (55.7) | Other income including | | | | | | | | | | | | equity in income of unconsolidated | | | | | | | | | | | | subsidiaries | | 429.9 | | (16.1) | | 24.3 | | (437.4) | | 0.7 | Income before income tax provision | | 227.9 | | 68.3 | | 369.1 | | (437.4) | | 227.9 | Income tax provision | | 73.6 | | 26.9 | | 125.0 | | (151.9) | | 73.6 | Net income | | 154.3 | | 41.4 | | 244.1 | | (285.5) | | 154.3 | Less: Net income attributable to | | | | | | | | | | | | noncontrolling interests | | 6.4 | | - | | 6.4 | | (6.4) | | 6.4 | Net income attributable to ATI | $ | 147.9 | $ | 41.4 | $ | 237.7 | $ | (279.1) | $ | 147.9 | | | | | | | | | | | | | Comprehensive income attributable to ATI | $ | 213.6 | $ | 40.6 | $ | 249.2 | $ | (289.8) | $ | 213.6 |
Condensed Statements of Cash Flows | | | For the nine months ended September 30, 2012 | | | | | Guarantor | | | Non-guarantor | | | | | (In millions) | Parent | Subsidiary | Subsidiaries | Eliminations | Consolidated | Cash flows provided by (used in) | | | | | | | | | | | | operating activities | $ | (21.7) | $ | (38.6) | $ | 310.3 | $ | (4.2) | $ | 245.8 | | | | | | | | | | | | | Cash flows used in investing activities | | (1.0) | | (192.3) | | (50.8) | | - | | (244.1) | | | | | | | | | | | | | Cash flows provided by (used in) | | | | | | | | | | | | financing activities | | 25.1 | | 125.8 | | (256.4) | | 4.2 | | (101.3) | Increase (decrease) in cash | | | | | | | | | | | | and cash equivalents | $ | 2.4 | $ | (105.1) | $ | 3.1 | $ | - | $ | (99.6) |
Allegheny Technologies Incorporated | | | | | Financial Information for Subsidiary and Guarantor Parent | | | | | Balance Sheets | | | | | December 31, 2011 | | | | | | | Guarantor | | | Non-guarantor | | | | | (In millions) | Parent | Subsidiary | Subsidiaries | Eliminations | Consolidated | Assets: | | | | | | | | | | | Cash and cash equivalents | $ | 0.8 | $ | 129.7 | $ | 250.1 | $ | - | $ | 380.6 | Accounts receivable, net | | 0.1 | | 220.6 | | 488.4 | | - | | 709.1 | Inventories, net | | - | | 299.0 | | 1,085.3 | | - | | 1,384.3 | Prepaid expenses and other current | | | | | | | | | | | | assets | | 10.5 | | 20.0 | | 65.0 | | - | | 95.5 | Total current assets | | 11.4 | | 669.3 | | 1,888.8 | | - | | 2,569.5 | Property, plant and equipment, net | | 3.0 | | 614.9 | | 1,750.9 | | - | | 2,368.8 | Cost in excess of net assets acquired | | - | | 112.1 | | 625.6 | | - | | 737.7 | Investments in subsidiaries and | | | | | | | | | | | | other assets | | 5,287.3 | | 1,579.0 | | 996.6 | | (7,492.0) | | 370.9 | Total assets | $ | 5,301.7 | $ | 2,975.3 | $ | 5,261.9 | $ | (7,492.0) | $ | 6,046.9 | | | | | | | | | | | | | Liabilities and stockholders’ equity: | | | | | | | | | | | Accounts payable | $ | 4.1 | $ | 222.5 | $ | 264.1 | $ | - | $ | 490.7 | Accrued liabilities | | 961.8 | | 66.7 | | 736.2 | | (1,444.4) | | 320.3 | Deferred income taxes | | 23.5 | | - | | - | | - | | 23.5 | Short-term debt and current portion | | | | | | | | | | | | of long-term debt | | - | | 0.1 | | 27.2 | | - | | 27.3 | Total current liabilities | | 989.4 | | 289.3 | | 1,027.5 | | (1,444.4) | | 861.8 | Long-term debt | | 1,252.5 | | 350.7 | | 78.8 | | (200.0) | | 1,482.0 | Accrued postretirement benefits | | - | | 215.5 | | 272.6 | | - | | 488.1 | Pension liabilities | | 441.6 | | 5.7 | | 61.6 | | - | | 508.9 | Deferred income taxes | | 9.8 | | - | | - | | - | | 9.8 | Other long-term liabilities | | 36.8 | | 17.2 | | 70.7 | | - | | 124.7 | Total liabilities | | 2,730.1 | | 878.4 | | 1,511.2 | | (1,644.4) | | 3,475.3 | Total stockholders’ equity | | 2,571.6 | | 2,096.9 | | 3,750.7 | | (5,847.6) | | 2,571.6 | Total liabilities and stockholders’ | | | | | | | | | | | | equity | $ | 5,301.7 | $ | 2,975.3 | $ | 5,261.9 | $ | (7,492.0) | $ | 6,046.9 |
Allegheny Technologies Incorporated | Financial Information for Subsidiary and Guarantor Parent | Statements of Income and Comprehensive Income | For the three months ended September 30, 2011 | | | Guarantor | | | Non-guarantor | | | | | (In millions) | Parent | Subsidiary | Subsidiaries | Eliminations | Consolidated | Sales | $ | - | $ | 596.0 | $ | 756.6 | $ | - | $ | 1,352.6 | Cost of sales | | 5.2 | | 525.9 | | 605.7 | | - | | 1,136.8 | Selling and administrative expenses | | 40.2 | | 15.8 | | 40.7 | | - | | 96.7 | Income (loss) before interest, other | | | | | | | | | | | | income and income taxes | | (45.4) | | 54.3 | | 110.2 | | - | | 119.1 | Interest income (expense), net | | (20.5) | | (2.7) | | (0.2) | | - | | (23.4) | Other income including | | | | | | | | | | | | equity in income of unconsolidated | | | | | | | | | | | | subsidiaries | | 161.3 | | 1.1 | | 0.8 | | (163.5) | | (0.3) | Income before income tax provision | | 95.4 | | 52.7 | | 110.8 | | (163.5) | | 95.4 | Income tax provision | | 31.2 | | 21.2 | | 39.8 | | (61.0) | | 31.2 | Net income | | 64.2 | | 31.5 | | 71.0 | | (102.5) | | 64.2 | Less: Net income attributable to | | | | | | | | | | | | noncontrolling interests | | 1.9 | | - | | 1.9 | | (1.9) | | 1.9 | Net income attributable to ATI | $ | 62.3 | $ | 31.5 | $ | 69.1 | $ | (100.6) | $ | 62.3 | | | | | | | | | | | | | Comprehensive income attributable to ATI | $ | 64.6 | $ | 28.1 | $ | 53.0 | $ | (81.1) | $ | 64.6 |
Allegheny Technologies Incorporated | Financial Information for Subsidiary and Guarantor Parent | Statements of Income and Comprehensive Income | For the nine months ended September 30, 2011 | | | Guarantor | | | Non-guarantor | | | | | (In millions) | Parent | Subsidiary | Subsidiaries | Eliminations | Consolidated | Sales | $ | - | $ | 1,851.0 | $ | 2,080.6 | $ | - | $ | 3,931.6 | Cost of sales | | 20.6 | | 1,641.6 | | 1,625.2 | | - | | 3,287.4 | Selling and administrative expenses | | 130.5 | | 35.4 | | 118.8 | | - | | 284.7 | Income (loss) before interest, other | | | | | | | | | | | | income and income taxes | | (151.1) | | 174.0 | | 336.6 | | - | | 359.5 | Interest expense, net | | (62.0) | | (7.8) | | (0.3) | | - | | (70.1) | Other income including | | | | | | | | | | | | equity in income of unconsolidated | | | | | | | | | | | | subsidiaries | | 502.6 | | 2.9 | | 0.9 | | (506.3) | | 0.1 | Income before income tax provision | | 289.5 | | 169.1 | | 337.2 | | (506.3) | | 289.5 | Income tax provision | | 100.6 | | 65.3 | | 121.3 | | (186.6) | | 100.6 | Net income | | 188.9 | | 103.8 | | 215.9 | | (319.7) | | 188.9 | Less: Net income attributable to | | | | | | | | | | | | noncontrolling interests | | 6.3 | | - | | 6.3 | | (6.3) | | 6.3 | Net income attributable to ATI | $ | 182.6 | $ | 103.8 | $ | 209.6 | $ | (313.4) | $ | 182.6 | | | | | | | | | | | | | Comprehensive income attributable to ATI | $ | 210.4 | $ | 98.8 | $ | 209.1 | $ | (307.9) | $ | 210.4 |
Condensed Statements of Cash Flows | For the nine months ended September 30, 2011 | | | Guarantor | | | Non-guarantor | | | | | (In millions) | Parent | Subsidiary | Subsidiaries | Eliminations | Consolidated | Cash flows provided by (used in) | | | | | | | | | | | | operating activities | $ | 34.9 | $ | (16.2) | $ | 88.8 | $ | - | $ | 107.5 | | | | | | | | | | | | | Cash flows used in investing activities | | (384.2) | | (84.5) | | (35.5) | | (10.8) | | (515.0) | | | | | | | | | | | | | Cash flows provided by (used in) | | | | | | | | | | | | financing activities | | 352.5 | | 94.2 | | (50.8) | | 10.8 | | 406.7 | Increase (decrease) in cash | | | | | | | | | | | | and cash equivalents | $ | 3.2 | $ | (6.5) | $ | 2.5 | $ | - | $ | (0.8) |
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