Condensed Consolidating Financial Statements

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

18. Condensed Consolidating Financial Statements:

     The Company’s senior unsecured notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) and are not secured by our other subsidiaries (the “Non-Guarantor Subsidiaries”). As a result of the guarantee arrangements, we are required to present the following condensed consolidating financial statements. During the first quarter of 2011, our guarantor and non-guarantor subsidiary structure changed as required by our credit facility due to the Kysor/Warren acquisition. Three subsidiaries previously classified as non-guarantor subsidiaries as of December 31, 2010 are now classified as guarantor subsidiaries. These changes are reflected in the condensed consolidating financial statements for periods after December 31, 2010.

     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 September 30, 2011 and December 31, 2010 and for the three and nine months ended September 30, 2011 and 2010 are shown below:

Condensed Consolidating Balance Sheets
As of September 30, 2011
(In millions)

						Non-
				Guarantor		Guarantor
	Parent			Subsidiaries		Subsidiaries			Eliminations			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	0.3		$	19.1	$	38.5		$	—		$	57.9
Restricted cash		—			—		—			—			—
Accounts and notes receivable, net		(917.0	)		1,004.3		391.8			(0.9	)		478.2
Inventories, net		—			274.9		124.4			(5.0	)		394.3
Deferred income taxes, net		14.9			30.7		8.7			(4.2	)		50.1
Other assets		20.5			23.2		82.9			(78.3	)		48.3
Total current assets		(881.3	)		1,352.2		646.3			(88.4	)		1,028.8
PROPERTY, PLANT AND EQUIPMENT, net		—			258.1		75.2			—			333.3
GOODWILL		—			111.8		195.2			—			307.0
DEFERRED INCOME TAXES		(3.9	)		81.0		20.1			(13.0	)		84.2
OTHER ASSETS, net		2,143.6			493.4		23.7			(2,579.7	)		81.0
TOTAL ASSETS	$	1,258.4		$	2,296.5	$	960.5		$	(2,681.1	)	$	1,834.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	102.8		$	—	$	(37.5	)	$	(61.8	)	$	3.5
Current maturities of long-term debt		—			0.3		0.1			—			0.4
Accounts payable		9.3			225.1		98.9			9.9			343.2
Accrued expenses		25.9			203.3		89.6			(2.7	)		316.1
Income taxes payable		(10.5	)		31.4		6.0			(17.3	)		9.6
Total current liabilities		127.5			460.1		157.1			(71.9	)		672.8
LONG-TERM DEBT		478.4			16.8		101.2			(100.7	)		495.7
POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS		—			15.6		—			—			15.6
PENSIONS		—			79.5		9.4			0.1			89.0
OTHER LIABILITIES		8.1			53.4		15.6			(14.6	)		62.5
Total liabilities		614.0			625.4		283.3			(187.1	)		1,335.6
COMMITMENTS AND CONTINGENCIES
TOTAL STOCKHOLDERS’ EQUITY		644.4			1,671.1		677.2			(2,494.0	)		498.7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,258.4		$	2,296.5	$	960.5		$	(2,681.1	)	$	1,834.3

Condensed Consolidating Statements of Operations
For the Three Months Ended September 30, 2011
(In millions)

							Non-
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
NET SALES	$	—		$	722.4		$	255.3		$	(54.7	)	$	923.0
COST OF GOODS SOLD		—			555.5			191.6			(55.2	)		691.9
Gross profit		—			166.9			63.7			0.5			231.1
OPERATING EXPENSES:
Selling, general and administrative expenses.		—			124.8			41.5			—			166.3
Losses (gains) and other expenses, net		2.3			0.4			(0.2	)		—			2.5
Restructuring charges		—			9.9			0.9			—			10.8
(Income) loss from equity method investments		(48.0	)		(11.1	)		(2.1	)		58.2			(3.0	)
Operational income (loss) from continuing operations		45.7			42.9			23.6			(57.7	)		54.5
INTEREST EXPENSE, net		4.4			(0.9	)		0.6			—			4.1
OTHER EXPENSE, net		—			—			—			—			—
Income (loss) from continuing operations before income taxes		41.3			43.8			23.0			(57.7	)		50.4
(BENEFIT FROM) PROVISIONS FOR INCOME TAXES		(2.3	)		11.1			7.6			0.2			16.6
Net income (loss)	$	43.6		$	32.7		$	15.4		$	(57.9	)	$	33.8

Condensed Consolidating Statements of Operations
For the Nine Months Ended September 30, 2011
(In millions)

							Non-
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
NET SALES	$	—		$	1,983.2		$	715.7		$	(151.2	)	$	2,547.7
COST OF GOODS SOLD		0.1			1,515.0			541.2			(152.4	)		1,903.9
Gross profit		(0.1	)		468.2			174.5			1.2			643.8
OPERATING EXPENSES:
Selling, general and administrative expenses		—			383.2			132.0			—			515.2
Losses (gains) and other expenses, net		4.5			(0.8	)		(0.6	)		—			3.1
Restructuring charges		—			13.1			1.3			—			14.4
(Income) loss from equity method investments		(96.9	)		(16.8	)		(7.0	)		111.8			(8.9	)
Operational income (loss) from continuing operations		92.3			89.5			48.8			(110.6	)		120.0
INTEREST EXPENSE, net		12.4			(2.7	)		2.8			—			12.5
OTHER EXPENSE, net		—			—			0.1			—			0.1
Income (loss) from continuing operations before income taxes		79.9			92.2			45.9			(110.6	)		107.4
(BENEFIT FROM) PROVISIONS FOR INCOME TAXES		(5.8	)		25.6			15.5			0.5			35.8
Net income (loss)	$	85.7		$	66.6		$	30.4		$	(111.1	)	$	71.6

Condensed Consolidating Balance Sheets
As of December 31, 2010
(In millions)

						Non-
				Guarantor		Guarantor
	Parent			Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	81.1		$	14.7	$	64.2	$	—		$	160.0
Restricted cash		—			—		12.2		—			12.2
Accounts and notes receivable, net		(1,169.7	)		933.3		613.2		8.0			384.8
Inventories, net		—			163.7		128.7		(6.2	)		286.2
Deferred income taxes, net		—			27.6		12.1		(3.0	)		36.7
Other assets		19.3			21.0		121.2		(94.5	)		67.0
Total current assets		(1,069.3	)		1,160.3		951.6		(95.7	)		946.9
PROPERTY, PLANT AND EQUIPMENT, net		—			202.8		121.6		(0.1	)		324.3
GOODWILL		—			50.8		225.8		(4.8	)		271.8
DEFERRED INCOME TAXES		—			77.3		22.6		(12.7	)		87.2
OTHER ASSETS, net		2,068.3			415.6		51.8		(2,473.9	)		61.8
TOTAL ASSETS	$	999.0		$	1,906.8	$	1,373.4	$	(2,587.2	)	$	1,692.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	31.1		$	—	$	1.8	$	(31.5	)	$	1.4
Current maturities of long-term debt		—			0.2		0.4		—			0.6
Accounts payable		8.1			133.1		131.0		1.6			273.8
Accrued expenses		6.6			262.0		115.5		(49.6	)		334.5
Income taxes payable		(36.1	)		30.6		28.3		(17.5	)		5.3
Total current liabilities		9.7			425.9		277.0		(97.0	)		615.6
LONG-TERM DEBT		300.0			5.4		139.6		(128.0	)		317.0
POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS		—			15.9		—		—			15.9
PENSIONS		—			77.4		10.7		—			88.1
OTHER LIABILITIES		5.8			46.8		25.9		(12.8	)		65.7
Total liabilities		315.5			571.4		453.2		(237.8	)		1,102.3
COMMITMENTS AND CONTINGENCIES
TOTAL STOCKHOLDERS’ EQUITY		683.5			1,335.4		920.2		(2,349.4	)		589.7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	999.0		$	1,906.8	$	1,373.4	$	(2,587.2	)	$	1,692.0

Condensed Consolidating Statements of Operations
For the Three Months Ended September 30, 2010
(In millions)

							Non-
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
NET SALES	$	—		$	563.0		$	318.8		$	(63.6	)	$	818.2
COST OF GOODS SOLD		0.1			413.4			233.6			(61.7	)		585.4
Gross profit		(0.1	)		149.6			85.2			(1.9	)		232.8
OPERATING EXPENSES:
Selling, general and administrative expenses.		—			120.0			43.5			—			163.5
Losses (gains) and other expenses, net		(1.5	)		2.1			0.3			(0.1	)		0.8
Restructuring charges		—			0.8			3.8			0.1			4.7
(Income) loss from equity method investments		(52.6	)		(4.1	)		(2.8	)		56.7			(2.8	)
Operational income (loss) from continuing operations		54.0			30.8			40.4			(58.6	)		66.6
INTEREST EXPENSE, net		8.9			(5.9	)		0.5			—			3.5
OTHER EXPENSE, net		—			—			—			—			—
Income (loss) from continuing operations before income taxes		45.1			36.7			39.9			(58.6	)		63.1
(BENEFIT FROM) PROVISIONS FOR INCOME TAXES		(2.7	)		12.1			11.9			(0.1	)		21.2
Income (loss) from continuing operations		47.8			24.6			28.0			(58.5	)		41.9
Loss from discontinued operations		—			—			0.1			—			0.1
Net income (loss)	$	47.8		$	24.6		$	27.9		$	(58.5	)	$	41.8

Condensed Consolidating Statements of Operations
For the Nine Months Ended September 30, 2010
(In millions)

							Non-
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
NET SALES	$	—		$	1,606.7		$	922.9		$	(195.2	)	$	2,334.4
COST OF GOODS SOLD		0.2			1,170.9			684.7			(193.2	)		1,662.6
Gross profit		(0.2	)		435.8			238.2			(2.0	)		671.8
OPERATING EXPENSES:
Selling, general and administrative expenses		—			367.3			145.7			—			513.0
Losses (gains) and other expenses, net		(0.1	)		6.6			(0.2	)		—			6.3
Restructuring charges		—			4.0			11.0			—			15.0
(Income) loss from equity method investments		(103.8	)		(7.6	)		(8.9	)		111.4			(8.9	)
Operational income (loss) from continuing operations		103.7			65.5			90.6			(113.4	)		146.4
INTEREST EXPENSE, net		8.9			(2.1	)		2.3			—			9.1
OTHER EXPENSE, net		—			—			0.1			—			0.1
Income (loss) from continuing operations before income taxes		94.8			67.6			88.2			(113.4	)		137.2
(BENEFIT FROM) PROVISIONS FOR INCOME TAXES		(3.3	)		22.2			29.0			—			47.9
Income (loss) from continuing operations		98.1			45.4			59.2			(113.4	)		89.3
Loss from discontinued operations		—			—			0.8			—			0.8
Net income (loss)	$	98.1		$	45.4		$	58.4		$	(113.4	)	$	88.5

Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2011
(In millions)

							Non-
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	31.8		$	(64.1	)	$	30.1		$	—	$	(2.2	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the disposal of property, plant and equipment		—			0.1			0.2			—		0.3
Purchases of property, plant and equipment		—			(23.6	)		(3.5	)		—		(27.1	)
Proceeds from sale of business		—			—			0.6			—		0.6
Acquisition of business		—			(147.7	)		—			—		(147.7	)
Restricted cash		—			—			12.2			—		12.2
Net cash used in investing activities		—			(171.2	)		9.5			—		(161.7	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term borrowings, net		—			—			2.5			—		2.5
Asset securitization borrowings		—			—			220.0			—		220.0
Asset securitization payments		—			—			(220.0	)		—		(220.0	)
Long-term payments		—			(0.7	)		—			—		(0.7	)
Revolver long-term borrowings		1,090.0			—			—			—		1,090.0
Revolver long-term payments		(911.5	)		—			—			—		(911.5	)
Proceeds from stock option exercises		1.5			—			—			—		1.5
Repurchases of common stock		(90.9	)		—			—			—		(90.9	)
Excess tax benefits related to share-based payments		1.5			—			—			—		1.5
Intercompany debt		76.7			(2.3	)		(74.4	)		—		—
Intercompany financing activity		(252.7	)		242.7			10.0			—		—
Cash dividends paid		(27.2	)		—			—			—		(27.2	)
Net cash (used in) provided by financing activities		(112.6	)		239.7			(61.9	)		—		65.2
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(80.8	)		4.4			(22.3	)		—		(98.7	)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		—			—			(3.4	)		—		(3.4	)
CASH AND CASH EQUIVALENTS, beginning of year		81.1			14.7			64.2			—		160.0
CASH AND CASH EQUIVALENTS, end of year	$	0.3		$	19.1		$	38.5		$	—	$	57.9

Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2010
(In millions)

							Non-
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(89.4	)	$	158.2		$	(25.2	)	$	—	$	43.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the disposal of property, plant and equipment		—			0.1			—			—		0.1
Purchases of property, plant and equipment		—			(23.2	)		(6.8	)		—		(30.0	)
Proceeds from sale of business		—			0.1			3.4			—		3.5
Acquisition of business		—			(6.0	)		—			—		(6.0	)
Restricted cash		—			—			(13.1	)		—		(13.1	)
Net cash used in investing activities		—			(29.0	)		(16.5	)		—		(45.5	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term borrowings, net		—			—			5.7			—		5.7
Long-term payments		(35.0	)		(0.1	)		(0.7	)		—		(35.8	)
Issuance of senior unsecured notes.		199.8			—			—			—		199.8
Revolver long-term borrowings		875.0			—			—			—		875.0
Revolver long-term payments		(906.5	)		—			—			—		(906.5	)
Additional investment in affiliates		—			—			(1.0	)		—		(1.0	)
Proceeds from stock option exercises		2.5			—			—			—		2.5
Payments of deferred financing costs		(1.8	)		—			—			—		(1.8	)
Repurchases of common stock		(150.3	)		—			—			—		(150.3	)
Excess tax benefits related to share-based payments		3.7			—			—			—		3.7
Intercompany debt		82.5			(102.6	)		20.1			—		—
Intercompany financing activity		42.8			(15.3	)		(27.5	)		—		—
Intercompany investments		(7.9	)		—			7.9			—		—
Intercompany dividends		9.0			—			(9.0	)		—		—
Cash dividends paid		(24.4	)		—			—			—		(24.4	)
Net cash (used in) provided by financing activities		89.4			(118.0	)		(4.5	)		—		(33.1	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		—			11.2			(46.2	)		—		(35.0	)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		—			—			3.1			—		3.1
CASH AND CASH EQUIVALENTS, beginning of year		0.8			6.6			116.9			—		124.3
CASH AND CASH EQUIVALENTS, end of year	$	0.8		$	17.8		$	73.8		$	—	$	92.4