EX-99.2 4 d72590exv99w2.htm EX-99.2 exv99w2
EXHIBIT 99.2
16. Condensed Consolidating Financial Statements
     The Company’s senior unsecured notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) while they are not by other subsidiaries (the “Non-Guarantor Subsidiaries”). As results of these guarantee arrangements, we are required to present the following condensed consolidating financial statements.
     The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. Intercompany account balances have been included in Accounts and Notes Receivable, Other (Current) Assets, Other Assets, net, Short-Term Debt, Accounts Payable, and Long-Term Debt line items of the Parent, Guarantor and Non-Guarantor balance sheets. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.
     Condensed consolidating financial statements of the Company, its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of March 31, 2010 and December 31, 2009 and for the three months ended March 31, 2010 and 2009 are shown below:

 


 

CONDENSED CONSOLIDATING BALANCE SHEETS
As of March 31, 2010
(In millions)
                                         
                    Non-     Consolidating        
            Guarantor     Guarantor     Entries and        
    Parent     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
ASSETS
       
 
                                       
CURRENT ASSETS:
                                       
Cash and cash equivalents
  $ 0.4     $ 8.0     $ 54.6     $     $ 63.0  
Restricted cash
                25.1             25.1  
Accounts and notes receivable, net
    (936.4 )     748.0       539.3       (1.4 )     349.5  
Inventories, net
          200.9       128.4       (2.9 )     326.4  
Deferred income taxes
    (0.5 )     25.4       15.8       (6.4 )     34.3  
Other assets
    12.7       25.9       61.9       (15.7 )     84.8  
 
                             
Total current assets
    (923.8 )     1,008.2       825.1       (26.4 )     883.1  
PROPERTY, PLANT AND EQUIPMENT, net
          207.3       119.4             326.7  
GOODWILL
          46.7       218.9       (4.7 )     260.9  
DEFERRED INCOME TAXES
    (0.6 )     64.7       19.3       (13.9 )     69.5  
OTHER ASSETS, net
    1,898.6       383.9       43.4       (2,275.3 )     50.6  
 
                             
TOTAL ASSETS
  $ 974.2     $ 1,710.8     $ 1,226.1     $ (2,320.3 )   $ 1,590.8  
 
                             
 
                                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
       
 
                                       
CURRENT LIABILITIES:
                                       
Short-term debt
  $ 25.1     $     $ 4.5     $ (25.4 )   $ 4.2  
Current maturities of long-term debt
                0.5             0.5  
Accounts payable
    8.4       164.1       121.3       (7.7 )     286.1  
Accrued expenses
    4.9       195.7       90.5       (5.2 )     285.9  
Income taxes payable
    (1.5 )     (13.6 )     6.9       8.2        
 
                             
Total current liabilities
    36.9       346.2       223.7       (30.1 )     576.7  
LONG-TERM DEBT
    269.5       96.2       121.6       (200.7 )     286.6  
POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS
          13.3                   13.3  
PENSIONS
          58.6       9.7       0.1       68.4  
OTHER LIABILITIES
    3.8       53.0       33.3       (14.8 )     75.3  
 
                             
Total liabilities
    310.2       567.3       388.3       (245.5 )     1,020.3  
COMMITMENTS AND CONTINGENCIES
                                       
TOTAL STOCKHOLDERS’ EQUITY
    664.0       1,143.5       837.8       (2,074.8 )     570.5  
 
                             
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
    $974.2     $ 1,710.8     $ 1,226.1     $ (2,320.3 )   $ 1,590.8  
 
                             
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2010
(In millions)
                                         
                    Non-     Consolidating        
            Guarantor     Guarantor     Entries and        
    Parent     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
NET SALES
  $     $ 429.4     $ 274.2     $ (59.5 )   $ 644.1  
COST OF GOODS SOLD
          322.7       206.5       (59.4 )     469.8  
 
                             
Gross profit
          106.7       67.7       (0.1 )     174.3  
OPERATING EXPENSES:
                                       
Selling, general and administrative expenses
          116.4       52.6       (0.1 )     168.9  
Gains and other expenses, net
    (0.2 )     (0.1 )                 (0.3 )
Restructuring charges
          2.0       5.1       0.1       7.2  
Loss (income) from equity method investments
    4.8       2.9       (2.0 )     (7.7 )     (2.0 )
 
                             
Operational (loss) income from continuing operations
    (4.6 )     (14.5 )     12.0       7.6       0.5  
INTEREST (INCOME) EXPENSE, net
    (0.3 )     1.9       0.9             2.5  
 
                             
(Loss) income from continuing operations before income taxes
    (4.3 )     (16.4 )     11.1       7.6       (2.0 )
PROVISION FOR (BENEFIT FROM) INCOME TAXES
    0.2       (5.0 )     4.1             (0.7 )
 
                             
(Loss) income from continuing operations
    (4.5 )     (11.4 )     7.0       7.6       (1.3 )
Loss from discontinued operations
                0.3             0.3  
 
                             
Net (loss) income
  $ (4.5 )   $ (11.4 )   $ 6.7     $ 7.6     $ (1.6 )
 
                             

 


 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 2010
(In millions)
                                         
                            Consolidating        
    Parent     Guarantor     Non-Guarantor     Entries and        
    Company     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
CASH FLOWS FROM OPERATING ACTIVITIES:
  $ (53.0 )   $ 32.4     $ (19.7 )   $     $ (40.3 )
 
                                       
CASH FLOWS FROM INVESTING ACTIVITIES:
                                       
Purchases of property, plant and equipment
          (2.1 )     (8.6 )           (10.7 )
Proceeds from sale of businesses
          0.1       3.1             3.2  
Acquisition of business
          (6.7 )                 (6.7 )
Restricted cash
                (25.1 )           (25.1 )
 
                             
Net cash used in investing activities
          (8.7 )     (30.6 )           (39.3 )
 
                                       
CASH FLOWS FROM FINANCING ACTIVITIES:
                                       
Short-term borrowings, net
                2.1             2.1  
Long-term payments
    (35.0 )           (0.1 )           (35.1 )
Revolver long-term borrowings, net
    93.0                         93.0  
Proceeds from stock option exercises
    1.0                         1.0  
Repurchases of common stock
    (39.4 )                       (39.4 )
Excess tax benefits related to share-based payments
    2.1                         2.1  
Intercompany debt
    (0.8 )     5.2       (4.4 )            
Intercompany financing activity
    38.5       (27.5 )     (11.0 )            
Intercompany investments
    (7.9 )           7.9              
Intercompany dividends
    9.0             (9.0 )            
Cash dividends paid
    (7.9 )                       (7.9 )
 
                             
Net cash provided by (used in) financing activities
    52.6       (22.3 )     (14.5 )           15.8  
DECREASE IN CASH AND CASH EQUIVALENTS
    (0.4 )     1.4       (64.8 )           (63.8 )
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
                2.5             2.5  
CASH AND CASH EQUIVALENTS, beginning of period
    0.8       6.6       116.9             124.3  
 
                             
CASH AND CASH EQUIVALENTS, end of period
  $ 0.4     $ 8.0     $ 54.6     $     $ 63.0  
 
                             

 


 

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2009
(In millions)
                                         
                    Non-     Consolidating        
        Guarantor     Guarantor     Entries and        
    Parent     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
ASSETS
CURRENT ASSETS:
                                       
Cash and cash equivalents
  $ 0.8     $ 6.6     $ 116.9     $     $ 124.3  
Accounts and notes receivable, net
    (975.0 )     775.1       558.3       (1.4 )     357.0  
Inventories, net
          139.4       113.7       (2.9 )     250.2  
Deferred income taxes
          25.4       15.8       (6.3 )     34.9  
Other assets
    12.2       19.1       64.2       (28.0 )     67.5  
 
                             
Total current assets
    (962.0 )     965.6       868.9       (38.6 )     833.9  
PROPERTY, PLANT AND EQUIPMENT, net
          207.8       121.8             329.6  
GOODWILL
          46.7       215.4       (4.7 )     257.4  
DEFERRED INCOME TAXES
          67.3       21.2       (13.9 )     74.6  
OTHER ASSETS, net
    1,905.1       371.4       41.5       (2,269.6 )     48.4  
 
                             
TOTAL ASSETS
  $ 943.1     $ 1,658.8     $ 1,268.8     $ (2,326.8 )   $ 1,543.9  
 
                             
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
                                       
Short-term debt
  $ 25.1     $     $ 2.5     $ (25.4 )   $ 2.2  
Current maturities of long-term debt
    35.0             0.5             35.5  
Accounts payable
    7.9       115.4       122.7       (7.8 )     238.2  
Accrued expenses
    5.1       192.5       125.5       (5.2 )     317.9  
Income taxes payable
    (17.5 )     (21.6 )     43.2       (4.1 )      
 
                             
Total current liabilities
    55.6       286.3       294.4       (42.5 )     593.8  
LONG-TERM DEBT
    176.5       98.8       117.4       (198.9 )     193.8  
POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS
          13.4                   13.4  
PENSIONS
          56.3       10.5       (0.1 )     66.7  
OTHER LIABILITIES
    2.6       50.9       32.9       (14.6 )     71.8  
 
                             
Total liabilities
    234.7       505.7       455.2       (256.1 )     939.5  
COMMITMENTS AND CONTINGENCIES
                                       
TOTAL STOCKHOLDERS’ EQUITY
    708.4       1,153.1       813.6       (2,070.7 )     604.4  
 
                             
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 943.1     $ 1,658.8     $ 1,268.8     $ (2,326.8 )   $ 1,543.9  
 
                             
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2009
(In millions)
                                         
                    Non-     Consolidating        
                    Guarantor     Entries and        
    Parent     Guarantor Subsidiaries     Subsidiaries     Eliminations     Consolidated  
NET SALES
  $     $ 399.7     $ 231.8     $ (50.9 )   $ 580.6  
COST OF GOODS SOLD
          309.4       184.7       (51.4 )     442.7  
 
                             
Gross profit
          90.3       47.1       0.5       137.9  
OPERATING EXPENSES:
                                       
Selling, general and administrative expenses
          111.3       43.8             155.1  
(Gains) losses and other expenses, net
    (2.6 )     (0.1 )     1.8             (0.9 )
Restructuring charges
          7.3       4.0       (0.1 )     11.2  
(Loss) income from equity method investments
    30.1       9.7       (1.3 )     (39.8 )     (1.3 )
 
                             
Operational loss from continuing operations
    (27.5 )     (37.9 )     (1.2 )     40.4       (26.2 )
INTEREST (INCOME) EXPENSE, net
    (0.3 )     2.3       (0.1 )           1.9  
 
                             
Loss from continuing operations before income taxes
    (27.2 )     (40.2 )     (1.1 )     40.4       (28.1 )
PROVISION FOR (BENEFIT FROM) INCOME TAXES
    1.1       (11.3 )     (0.2 )           (10.4 )
 
                             
Loss from continuing operations
    (28.3 )     (28.9 )     (0.9 )     40.4       (17.7 )
Loss from discontinued operations
                0.4             0.4  
 
                             
Net loss
  $ (28.3 )   $ (28.9 )   $ (1.3 )   $ 40.4     $ (18.1 )
 
                             

 


 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 2009
(In millions)
                                         
                            Consolidating        
    Parent     Guarantor     Non-Guarantor     Entries and        
    Company     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
CASH FLOWS FROM OPERATING ACTIVITIES:
  $ 42.7     $ (1.4 )   $ (25.0 )   $     $ 16.3  
CASH FLOWS FROM INVESTING ACTIVITIES:
                                       
Proceeds from the disposal of property, plant and equipment
                0.1             0.1  
Purchases of property, plant and equipment
            (8.2 )     (1.7 )             (9.9 )
Proceeds from sale of businesses
          0.5                   0.5  
Purchases of short-term investments
                (9.1 )           (9.1 )
Proceeds from sales and maturities of short-term investments
                10.2             10.2  
 
                             
Net cash provided by (used in) investing activities
          (7.7 )     (0.5 )           (8.2 )
 
                                       
CASH FLOWS FROM FINANCING ACTIVITIES:
                                       
Short-term borrowings, net
                    2.2               2.2  
Long-term payments
                  (1.2 )             (1.2 )
Revolver long-term payments, net
    (16.3 )                             (16.3 )
Proceeds from stock option exercises
    0.6                         0.6  
Repurchases of common stock
    (2.6 )                       (2.6 )
Excess tax benefits related to share-based payments
    (0.3 )                       (0.3 )
Intercompany debt
    16.8       8.7       (25.5 )            
Intercompany financing activity
    (37.8 )     10.9       26.9              
Intercompany dividends
    5.0               (5.0 )            
Cash dividends paid
    (7.7 )                       (7.7 )
 
                             
Net cash used in financing activities
    (42.3 )     19.6       (2.6 )           (25.3 )
DECREASE IN CASH AND CASH EQUIVALENTS
    0.4       10.5       (28.1 )           (17.2 )
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
                (3.0 )           (3.0 )
CASH AND CASH EQUIVALENTS, beginning of period
          3.1       119.0             122.1  
 
                             
CASH AND CASH EQUIVALENTS, end of period
  $ 0.4     $ 13.6     $ 87.9     $     $ 101.9