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Supplemental Guarantor Financial Information (Tables)
6 Months Ended
Jun. 30, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Income and Comprehensive Income Statements
AVANOS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS
(in millions)

 
Three Months Ended June 30, 2018
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
$

 
$
169.7

 
$
37.1

 
$
(45.9
)
 
$
160.9

Cost of products sold
(0.8
)
 
89.4

 
23.5

 
(45.9
)
 
66.2

Gross Profit
0.8

 
80.3

 
13.6

 

 
94.7

Research and development

 
10.8

 

 

 
10.8

Selling and general expenses
8.7

 
59.6

 
11.5

 

 
79.8

Other income, net
(2.5
)
 
(3.0
)
 
(3.2
)
 
4.0

 
(4.7
)
Operating (Loss) Profit
(5.4
)
 
12.9

 
5.3

 
(4.0
)
 
8.8

Interest income
1.4

 
0.1

 
1.8

 
(1.1
)
 
2.2

Interest expense
(10.0
)
 
(0.9
)
 
(0.1
)
 
1.1

 
(9.9
)
(Loss) Income Before Income Taxes
(14.0
)
 
12.1

 
7.0

 
(4.0
)
 
1.1

Income tax benefit (provision)
1.0

 
1.9

 
(2.7
)
 

 
0.2

Equity in earnings of consolidated subsidiaries
54.8

 
132.1

 

 
(186.9
)
 

Net Income from Continuing Operations
41.8

 
146.1

 
4.3

 
(190.9
)
 
1.3

(Loss) Income from discontinued operations, net of tax
(6.5
)
 
(66.8
)
 
107.3

 

 
34.0

Net Income
35.3

 
79.3

 
111.6

 
(190.9
)
 
35.3

Total other comprehensive loss, net of tax
(10.3
)
 
(5.7
)
 
(8.8
)
 
14.5

 
(10.3
)
Comprehensive Income
$
25.0

 
$
73.6

 
$
102.8

 
$
(176.4
)
 
$
25.0



AVANOS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS
(in millions)

 
Three Months Ended June 30, 2017
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
$

 
$
163.8

 
$
80.6

 
$
(95.3
)
 
$
149.1

Cost of products sold

 
96.0

 
63.9

 
(95.3
)
 
64.6

Gross Profit

 
67.8

 
16.7

 

 
84.5

Research and development

 
9.2

 

 

 
9.2

Selling and general expenses
9.7

 
61.6

 
9.8

 

 
81.1

Other expense and (income), net
0.1

 
9.2

 
(3.0
)
 

 
6.3

Operating (Loss) Income
(9.8
)
 
(12.2
)
 
9.9

 

 
(12.1
)
Interest income
0.2

 

 
1.1

 
(0.8
)
 
0.5

Interest expense
(8.0
)
 
(0.5
)
 
(0.1
)
 
0.8

 
(7.8
)
(Loss) Income Before Income Taxes
(17.6
)
 
(12.7
)
 
10.9

 

 
(19.4
)
Income tax benefit
1.3

 
5.3

 
1.4

 

 
8.0

Equity in earnings of consolidated subsidiaries
28.2

 
9.9

 

 
(38.1
)
 

Net Income (Loss) from Continuing Operations
11.9

 
2.5

 
12.3

 
(38.1
)
 
(11.4
)
Income from discontinued operations, net of tax
5.2

 
19.2

 
4.1

 

 
28.5

Net Income
17.1

 
21.7

 
16.4

 
(38.1
)
 
17.1

Total other comprehensive income, net of tax
5.1

 
3.4

 
5.2

 
(8.6
)
 
5.1

Comprehensive Income
$
22.2

 
$
25.1

 
$
21.6

 
$
(46.7
)
 
$
22.2



AVANOS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS
(in millions)

 
Six Months Ended June 30, 2018
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
$

 
$
343.0

 
$
112.0

 
$
(137.7
)
 
$
317.3

Cost of products sold
(0.8
)
 
173.9

 
96.1

 
(137.7
)
 
131.5

Gross Profit
0.8

 
169.1

 
15.9

 

 
185.8

Research and development

 
20.7

 

 

 
20.7

Selling and general expenses
20.6

 
122.0

 
23.6

 

 
166.2

Other (income) and expense, net
(2.2
)
 
1.2

 
(5.9
)
 
4.0

 
(2.9
)
Operating (Loss) Income
(17.6
)
 
25.2

 
(1.8
)
 
(4.0
)
 
1.8

Interest income
1.8

 
0.1

 
3.2

 
(1.9
)
 
3.2

Interest expense
(18.9
)
 
(1.6
)
 
(0.1
)
 
1.9

 
(18.7
)
(Loss) Income Before Income Taxes
(34.7
)
 
23.7

 
1.3

 
(4.0
)
 
(13.7
)
Income tax benefit (provision)
8.9

 
(1.3
)
 
(3.9
)
 

 
3.7

Equity in earnings of consolidated subsidiaries
87.8

 
140.6

 

 
(228.4
)
 

Net Income (Loss) from Continuing Operations
62.0

 
163.0

 
(2.6
)
 
(232.4
)
 
(10.0
)
(Loss) Income from discontinued operations, net of tax
(6.5
)
 
(49.9
)
 
121.9

 

 
65.5

Net Income
55.5

 
113.1

 
119.3

 
(232.4
)
 
55.5

Total other comprehensive (loss) income, net of tax
(0.8
)
 
2.8

 
(0.7
)
 
(2.1
)
 
(0.8
)
Comprehensive Income
$
54.7

 
$
115.9

 
$
118.6

 
$
(234.5
)
 
$
54.7

AVANOS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS
(in millions)

 
Six Months Ended June 30, 2017
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
$

 
$
325.9

 
$
145.2

 
$
(176.3
)
 
$
294.8

Cost of products sold

 
180.9

 
124.2

 
(176.3
)
 
128.8

Gross Profit

 
145.0

 
21.0

 

 
166.0

Research and development

 
16.5

 

 

 
16.5

Selling and general expenses
19.7

 
125.6

 
20.6

 

 
165.9

Other expense and (income), net
0.3

 
18.8

 
(5.8
)
 

 
13.3

Operating (Loss) Profit
(20.0
)
 
(15.9
)
 
6.2

 

 
(29.7
)
Interest income
0.4

 

 
2.1

 
(1.6
)
 
0.9

Interest expense
(15.8
)
 
(1.1
)
 
(0.1
)
 
1.6

 
(15.4
)
(Loss) Income Before Income Taxes
(35.4
)
 
(17.0
)
 
8.2

 

 
(44.2
)
Income tax benefit
2.5

 
14.5

 
0.9

 

 
17.9

Equity in earnings of consolidated subsidiaries
52.1

 
13.0

 

 
(65.1
)
 

Net Income (Loss) from Continuing Operations
19.2

 
10.5

 
9.1

 
(65.1
)
 
(26.3
)
Income from discontinued operations, net of tax
10.7

 
35.7

 
9.8

 

 
56.2

Net Income
29.9

 
46.2

 
18.9

 
(65.1
)
 
29.9

Total other comprehensive income, net of tax
15.8

 
11.9

 
14.9

 
(26.8
)
 
15.8

Comprehensive Income
$
45.7

 
$
58.1

 
$
33.8

 
$
(91.9
)
 
$
45.7

Condensed Consolidating Balance Sheet
AVANOS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
(in millions)


 
As of June 30, 2018
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
109.9

 
$
77.7

 
$
292.0

 
$

 
$
479.6

Restricted cash
51.5

 

 

 

 
51.5

Accounts receivable, net of allowances
2.2

 
1,074.7

 
208.7

 
(1,096.4
)
 
189.2

Inventories

 
92.9

 
14.9

 

 
107.8

Prepaid expenses and other current assets
11.9

 
15.8

 
29.2

 
(8.5
)
 
48.4

Total Current Assets
175.5

 
1,261.1

 
544.8

 
(1,104.9
)
 
876.5

Property, Plant and Equipment, net

 
104.5

 
19.0

 

 
123.5

Investment in Consolidated Subsidiaries
2,303.7

 
475.7

 

 
(2,779.4
)
 

Goodwill

 
738.1

 
25.7

 

 
763.8

Other Intangible Assets, net

 
130.6

 
8.9

 

 
139.5

Other Assets
0.1

 
9.6

 
4.4

 

 
14.1

TOTAL ASSETS
$
2,479.3

 
$
2,719.6

 
$
602.8

 
$
(3,884.3
)
 
$
1,917.4

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
930.6

 
$
286.1

 
$
46.7

 
$
(1,086.5
)
 
$
176.9

Accrued expenses
6.4

 
160.0

 
27.9

 
(18.4
)
 
175.9

Total Current Liabilities
937.0

 
446.1

 
74.6

 
(1,104.9
)
 
352.8

Long-Term Debt
247.4

 

 

 

 
247.4

Other Long-Term Liabilities
8.3

 
18.8

 
3.5

 

 
30.6

Total Liabilities
1,192.7

 
464.9

 
78.1

 
(1,104.9
)
 
630.8

Total Equity
1,286.6

 
2,254.7

 
524.7

 
(2,779.4
)
 
1,286.6

TOTAL LIABILITIES AND EQUITY
$
2,479.3

 
$
2,719.6

 
$
602.8

 
$
(3,884.3
)
 
$
1,917.4


AVANOS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
(in millions)

 
As of December 31, 2017
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
114.5

 
$
16.0

 
$
89.2

 
$

 
$
219.7

Accounts receivable, net of allowances
1.1

 
623.0

 
266.3

 
(687.4
)
 
203.0

Inventories

 
76.0

 
15.1

 

 
91.1

Prepaid expenses and other current assets
0.6

 
11.7

 
2.1

 

 
14.4

Assets held for sale
0.3

 
546.7

 
85.5

 

 
632.5

Total Current Assets
116.5

 
1,273.4

 
458.2

 
(687.4
)
 
1,160.7

Property, Plant and Equipment, net

 
92.9

 
17.0

 

 
109.9

Investment in Consolidated Subsidiaries
2,154.3

 
403.2

 

 
(2,557.5
)
 

Goodwill

 
738.1

 
26.6

 

 
764.7

Other Intangible Assets, net

 
139.5

 
9.4

 

 
148.9

Other Assets
0.3

 
6.0

 
5.4

 

 
11.7

TOTAL ASSETS
$
2,271.1

 
$
2,653.1

 
$
516.6

 
$
(3,244.9
)
 
$
2,195.9

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
39.8

 
$

 
$

 
$

 
$
39.8

Trade accounts payable
454.0

 
347.0

 
49.8

 
(679.6
)
 
171.2

Accrued expenses
11.6

 
113.9

 
27.4

 
(8.0
)
 
144.9

Liabilities held for sale

 
7.8

 
26.1

 

 
33.9

Total Current Liabilities
505.4

 
468.7

 
103.3

 
(687.6
)
 
389.8

Long-Term Debt
541.1

 

 

 

 
541.1

Other Long-Term Liabilities
9.2

 
36.1

 
4.3

 

 
49.6

Total Liabilities
1,055.7

 
504.8

 
107.6

 
(687.6
)
 
980.5

Total Equity
1,215.4

 
2,148.3

 
409.0

 
(2,557.3
)
 
1,215.4

TOTAL LIABILITIES AND EQUITY
$
2,271.1

 
$
2,653.1

 
$
516.6

 
$
(3,244.9
)
 
$
2,195.9

Condensed Consolidating Statements of Cash Flows
AVANOS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(in millions)

 
Six Months Ended June 30, 2018
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Cash (Used in) Provided by Operating Activities
$
(114.2
)
 
$
31.3

 
$
12.5

 
$

 
$
(70.4
)
Investing Activities
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(15.0
)
 
(5.7
)
 

 
(20.7
)
Proceeds from the Divestiture
521.6

 
9.0

 
203.9

 

 
734.5

Intercompany contributions

 
36.3

 

 
(36.3
)
 

Cash Provided by Investing Activities
521.6

 
30.3

 
198.2

 
(36.3
)
 
713.8

Financing Activities
 
 
 
 
 
 
 
 
 
Intercompany contributions
(32.3
)
 

 
(4.0
)
 
36.3

 

Debt repayments
(339.0
)
 

 

 

 
(339.0
)
Purchase of treasury stock
(0.6
)
 

 

 

 
(0.6
)
Proceeds from the exercise of stock options
11.4

 

 

 

 
11.4

Cash Used in Financing Activities
(360.5
)
 

 
(4.0
)
 
36.3

 
(328.2
)
Effect of Exchange Rate on Cash, Cash Equivalents and Restricted Cash

 
0.1

 
(3.9
)
 

 
(3.8
)
Increase in Cash, Cash Equivalents and Restricted Cash
46.9

 
61.7

 
202.8

 

 
311.4

Cash and Cash Equivalents, Beginning of Period
114.5

 
16.0

 
89.2

 

 
219.7

Cash, Cash Equivalents and Restricted Cash, End of Period
$
161.4

 
$
77.7

 
$
292.0

 
$

 
$
531.1


AVANOS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(in millions)

 
Six Months Ended June 30, 2017
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Cash (Used in) Provided by Operating Activities
$
(21.1
)
 
$
73.7

 
$
4.1

 
$

 
$
56.7

Investing Activities
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(13.0
)
 
(3.6
)
 

 
(16.6
)
Proceeds from property dispositions

 
0.1

 

 

 
0.1

Intercompany contributions

 
(55.1
)
 

 
55.1

 

Cash Used in Investing Activities

 
(68.0
)
 
(3.6
)
 
55.1

 
(16.5
)
Financing Activities
 
 
 
 
 
 
 
 
 
Intercompany contributions
57.8

 

 
(2.7
)
 
(55.1
)
 

Purchase of treasury stock
(2.0
)
 

 

 

 
(2.0
)
Proceeds from the exercise of stock options
0.8

 

 

 

 
0.8

Cash Provided by (Used in) Financing Activities
56.6

 

 
(2.7
)
 
(55.1
)
 
(1.2
)
Effect of Exchange Rate on Cash and Cash Equivalents

 
0.3

 
1.8

 

 
2.1

Increase (Decrease) in Cash and Cash Equivalents
35.5

 
6.0

 
(0.4
)
 

 
41.1

Cash and Cash Equivalents, Beginning of Period
54.2

 
9.5

 
50.0

 

 
113.7

Cash and Cash Equivalents, End of Period
$
89.7

 
$
15.5

 
$
49.6

 
$

 
$
154.8