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Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd., and OldCo, LLC (Tables)
 6 Months Ended
Jun. 30, 2017
Reorganizations [Abstract]  
Schedule of Condensed Combined Statements of Operations
Condensed combined financial information for GST and OldCo is set forth below, presented on a historical cost basis. Note that because the OldCo Chapter 11 Case had not commenced as of December 31, 2016, OldCo's assets and liabilities are included in the Condensed Combined Balance Sheet as of June 30, 2017 and excluded as of December 31, 2016. Its results of operations and cash flows are excluded from the Condensed Combined Statements of Operations for the quarter and six months ended June 30, 2016, and the Condensed Combined Statement of Cash Flows for the six months ended June 30, 2016.
GST and OldCo
(Debtors-in-Possession)
Condensed Combined Statements of Operations (Unaudited)
(in millions)
 
Quarters Ended June 30,
 
Six Months Ended 
 June 30,
 
2017
 
2016
 
2017
 
2016
Net sales
$
54.0

 
$
50.6

 
$
110.6

 
$
101.7

Cost of sales
32.2

 
31.5

 
68.3

 
64.0

Gross profit
21.8

 
19.1

 
42.3

 
37.7

Operating expenses:
 
 
 
 
 
 
 
Selling, general and administrative
10.0

 
10.6

 
20.8

 
21.3

Asbestos-related
(23.7
)
 
0.2

 
(23.6
)
 
50.0

Other
—

 
0.3

 
0.1

 
0.3

Total operating expenses
(13.7
)
 
11.1

 
(2.7
)
 
71.6

Operating income (loss)
35.5

 
8.0

 
45.0

 
(33.9
)
Interest income, net
9.4

 
8.5

 
18.4

 
16.9

Income (loss) before reorganization expenses and income taxes
44.9

 
16.5

 
63.4

 
(17.0
)
Reorganization expenses
(2.4
)
 
(1.9
)
 
(4.5
)
 
(8.0
)
Income (loss) before income taxes
42.5

 
14.6

 
58.9

 
(25.0
)
Income tax benefit (expense)
(15.5
)
 
(4.6
)
 
(21.3
)
 
9.6

Net income (loss)
$
27.0

 
$
10.0

 
$
37.6

 
$
(15.4
)
Comprehensive income (loss)
$
29.3

 
$
8.3

 
$
44.7

 
$
(14.0
)
Schedule of Condensed Combined Statements of Cash Flows
GST and OldCo
(Debtors-in-Possession)
Condensed Combined Statements of Cash Flows (Unaudited)
Six Months Ended June 30, 2017 and 2016
(in millions)
 
2017
 
2016
Net cash provided by operating activities
$
35.4

 
$
38.0

Investing activities
 
 
 
Purchases of property, plant and equipment
(1.7
)
 
(3.3
)
Net payments on loans to affiliates
(2.5
)
 
(4.5
)
Net purchase of held-to-maturity securities
(1.1
)
 
—

Opening cash from OldCo
4.8

 
—

Other
—

 
(0.2
)
Net cash provided by (used in) investing activities
(0.5
)
 
(8.0
)
Effect of exchange rate changes on cash and cash equivalents
1.5

 
1.5

Net increase in cash and cash equivalents
36.4

 
31.5

Cash and cash equivalents at beginning of period
59.5

 
71.9

Cash and cash equivalents at end of period
$
95.9

 
$
103.4
Schedule of Condensed Combined Balance Sheets
GST and OldCo
(Debtors-in-Possession)
Condensed Combined Balance Sheets (Unaudited)
(in millions)
 
June 30,
2017
 
December 31,
2016
Assets:
 
 
 
Notes receivable from affiliate - current
$
309.3

 
$
12.7

Other current assets
487.0

 
425.9

Asbestos insurance receivable
37.1

 
49.0

Deferred income taxes
90.5

 
126.0

Notes receivable from affiliate
—

 
283.2

Other assets
65.8

 
67.0

Total assets
$
989.7

 
$
963.8

Liabilities and Shareholder’s Equity:
 
 
 
Current liabilities
$
33.6

 
$
40.3

Other liabilities
64.8

 
126.0

Liabilities subject to compromise (A)
498.4

 
388.6

Total liabilities
596.8

 
554.9

Shareholder’s equity
392.9

 
408.9

Total liabilities and shareholder’s equity
$
989.7

 
$
963.8



(A) Liabilities subject to compromise include pre-petition unsecured claims which may be resolved at amounts different from those recorded in the condensed combined balance sheets. Liabilities subject to compromise consist principally of asbestos-related claims. Per the terms of the comprehensive settlement agreement with the appointed committee representing current asbestos claimants and the court-appointed representative of future claimants in the GST asbestos claims resolution process pending before the Bankruptcy Court, GST has accrued $387 million as of June 30, 2017 for asbestos related claims. The accrual includes (a) $370 million to be contributed to the trust for present and future asbestos claims against GST plus litigation and administrative expenses, and (b) $16.8 million for the resolution of all current and future Canadian asbestos claims alleging disease resulting in whole or in part from exposure to GST asbestos-containing products. Pursuant to the same settlement agreement, OldCo has accrued $110 million to be contributed to the trust. See Note 17, “Commitments and Contingencies — Asbestos — Liability Estimate."