Debtor-In-Possession Financial Information (Tables)

12 Months Ended

Dec. 31, 2017

Debtor-in-Possession Financing

Schedule of Liabilities Subject to Compromise

The following table reflects prepetition liabilities that are subject to compromise included in our consolidated balance sheets as of December 31, 2017. See Note 10—Debt and Redeemable Preferred Stock for a further information about our debt instruments and related balances subject to compromise.

	Debtor-in-Possession
(In millions)	Real Industry		Real Alloy		Total
Senior Secured Notes	$	—	$	135.0	$	135.0
Roll Up DIP Term Notes		—		170.0		170.0
Trade accounts payable		0.1		16.6		16.7
Accrued interest on Senior Secured Notes and Roll Up DIP Term Notes		—		14.0		14.0
Accrued dividends on Redeemable Preferred Stock		1.8		—		1.8
Other accrued liabilities		1.2		2.0		3.2
Liabilities subject to compromise	$	3.1	$	337.6	$	340.7

Schedule of Reorganization Items, Net

Transactions and events directly associated with the reorganization are distinguished from the ongoing operations of the business, which are classified as reorganization items, net in the consolidated statements of operations for the year ended December 31, 2017. The following table summarizes reorganization items, net:

	Debtor-in-Possession
(In millions)	Real Industry		Real Alloy		Total
Professional fees	$	0.2	$	1.3	$	1.5
Legal fees		1.6		2.6		4.2
Write-off of unamortized debt issuance costs on the Senior Secured Notes		—		6.0		6.0
Reorganization items, net	$	1.8	$	9.9	$	11.7

Schedule of Debtor-in-Possession Condensed Financial Statements

The following table presents the condensed combined balance sheet of the Debtors as of December 31, 2017:

(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	7.6
Trade accounts receivable, net		83.9
Inventories		54.0
Prepaid expenses, supplies and other current assets		24.4
Total current assets		169.9
Property, plant and equipment, net		109.7
Equity method investment		7.9
Deferred income taxes, net		8.9
Investment in subsidiaries		60.8
Intercompany receivable		92.3
Other noncurrent assets		7.8
TOTAL ASSETS	$	457.3
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Trade payables	$	48.4
Accrued liabilities		13.2
RA DIP Financing, net		103.9
Long-term debt due within one year, net		2.0
Total current liabilities		167.5
Environmental liabilities		4.7
Long-term debt, net		2.3
Other noncurrent liabilities		5.4
Liabilities not subject to compromise		179.9
Liabilities subject to compromise		340.7
TOTAL LIABILITIES		520.6
Redeemable Preferred Stock		28.5
Stockholders' deficit:
Paid in capital and accumulated deficit		(80.6)
Accumulated other comprehensive loss		(11.2)
TOTAL STOCKHOLDERS' DEFICIT		(91.8)
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT	$	457.3

The following table presents the condensed combined statement of operations of the Debtors for the period from the Petition Date to December 31, 2017:

(In millions)
Revenues	$	71.3
Cost of sales		66.9
Gross profit		4.4
Selling, general and administrative expenses		2.6
Amortization of intangibles		0.3
Identifiable intangible asset impairment		10.1
Property, plant and equipment impairment		40.5
Operating loss		(49.1)
Nonoperating expense (income):
Interest expense, net		5.6
Foreign exchange gains on intercompany loans		(2.4)
Reorganization items, net		11.7
Other, net		2.0
Total nonoperating expense, net		16.9
Loss before income taxes		(66.0)
Income tax benefit		(11.9)
Net loss	$	(54.1)

The following table presents the condensed combined statement of cash flows of the Debtors for the period from the Petition Date to December 31, 2017:

(In millions)
Cash flows from operating activities:
Net loss	$	(54.1)
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization		3.3
Deferred income taxes		(9.1)
Share-based compensation expense		0.2
Amortization of debt issuance costs		1.3
Unrealized foreign exchange gains on intercompany loans		(2.4)
Identifiable intangible asset impairment		10.1
Property, plant and equipment impairment		40.5
Noncash reorganization items, net		6.0
Other		(0.1)
Changes in operating assets and liabilities:
Trade accounts receivable, net		(14.2)
Inventories		3.8
Prepaid expenses, supplies and other current assets		(5.8)
Other noncurrent assets		1.2
Trade payables		11.8
Accrued liabilities		(9.7)
Other noncurrent liabilities		13.8
Net cash used in operating activities		(3.4)
Cash flows from investing activities:
Change in intercompany receivables, net		(0.5)
Distributions from subsidiaries		0.2
Purchases of property and equipment		(0.3)
Other		(0.1)
Net cash used in investing activities		(0.7)
Cash flows from financing activities:
Repayments on capital leases and the Revolving Credit Facilities		(94.5)
Proceeds from the issuance of the RA DIP Financing, net of debt issuance costs		103.2
Repayments on RA DIP ABL Facility		(0.1)
Other		2.4
Net cash provided by financing activities		11.0
Increase in cash, cash equivalents, restricted cash and restricted cash equivalents		6.9
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period		8.1
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period	$	15.0