Condensed Consolidating Financial Information (Tables)

9 Months Ended

Aug. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Operations and Comprehensive Income

Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income

(Unaudited)



Three months ended August 31, 2014	Parent			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Net sales	$	—		$	413.7	$	5.8		$	—		$	419.5
Cost of sales (exclusive of items shown separately below)	—			369.4		4.9			(0.1		)	374.2
Selling, general and administrative	3.4			5.9		0.4			—			9.7
Depreciation and amortization	—			15.4		0.3			—			15.7
Interest expense	13.5			0.5		—			—			14.0
Other, net	9.8			7.2		(0.8		)	0.1			16.3
(Loss) income from continuing operations before income taxes	(26.7		)	15.3		1.0			—			(10.4		)
Income tax (benefit) provision	(6.2		)	4.7		0.8			—			(0.7		)
(Loss) income from continuing operations	(20.5		)	10.6		0.2			—			(9.7		)
Income from discontinued operations	0.2			—		—			—			0.2
(Loss) income before equity income of subsidiaries	(20.3		)	10.6		0.2			—			(9.5		)
Equity income of subsidiaries	10.8			—		—			(10.8		)	—
Net (loss) income	$	(9.5	)	$	10.6	$	0.2		$	(10.8	)	$	(9.5	)
Comprehensive (loss) income	$	(2.0	)	$	15.8	$	0.2		$	(16.0	)	$	(2.0	)



Three months ended August 31, 2013	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Net sales	$	—		$	361.4		$	6.1		$	—		$	367.5
Cost of sales (exclusive of items shown separately below)	—			322.3			4.6			(0.2		)	326.7
Selling, general and administrative	6.6			7.1			0.4			—			14.1
Depreciation and amortization	0.1			14.8			0.3			—			15.2
Interest expense	11.8			0.6			—			—			12.4
Other, net	4.2			2.9			0.8			0.2			8.1
(Loss) income from continuing operations before income taxes	(22.7		)	13.7			—			—			(9.0		)
Income tax benefit	(63.2		)	(136.9		)	(6.5		)	—			(206.6		)
Income from continuing operations	40.5			150.6			6.5			—			197.6
Loss from discontinued operations	(0.2		)	—			—			—			(0.2		)
Income before equity income of subsidiaries	40.3			150.6			6.5			—			197.4
Equity income of subsidiaries	157.1			—			—			(157.1		)	—
Net income	$	197.4		$	150.6		$	6.5		$	(157.1	)	$	197.4
Comprehensive income	$	220.4		$	166.8		$	6.5		$	(173.3	)	$	220.4



Nine months ended August 31, 2014	Parent			Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Net sales	$	—		$	1,133.1	$	19.2		$	—		$	1,152.3
Cost of sales (exclusive of items shown separately below)	—			1,009.8		17.8			(0.4		)	1,027.2
Selling, general and administrative	9.0			17.9		1.2			—			28.1
Depreciation and amortization	0.1			45.0		0.8			—			45.9
Interest expense	37.1			1.9		—			—			39.0
Other, net	59.3			14.4		(1.9		)	0.4			72.2
(Loss) income from continuing operations before income taxes	(105.5		)	44.1		1.3			—			(60.1		)
Income tax (benefit) provision	(16.0		)	16.2		0.9			—			1.1
(Loss) income from continuing operations	(89.5		)	27.9		0.4			—			(61.2		)
Loss from discontinued operations	(0.6		)	—		—			—			(0.6		)
(Loss) income before equity income of subsidiaries	(90.1		)	27.9		0.4			—			(61.8		)
Equity income of subsidiaries	28.3			—		—			(28.3		)	—
Net (loss) income	$	(61.8	)	$	27.9	$	0.4		$	(28.3	)	$	(61.8	)
Comprehensive (loss) income	$	(39.1	)	$	43.4	$	0.4		$	(43.8	)	$	(39.1	)



Nine months ended August 31, 2013	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Net sales	$	—		$	878.8		$	19.0		$	—		$	897.8
Cost of sales (exclusive of items shown separately below)	—			784.5			14.6			(0.5		)	798.6
Selling, general and administrative	23.2			15.9			0.8			—			39.9
Depreciation and amortization	0.1			25.7			0.8			—			26.6
Interest expense	34.4			1.8			—			—			36.2
Other, net	26.9			(5.4		)	2.3			0.5			24.3
(Loss) income from continuing operations before income taxes	(84.6		)	56.3			0.5			—			(27.8		)
Income tax benefit	(75.3		)	(116.1		)	(8.2		)	—			(199.6		)
(Loss) income from continuing operations	(9.3		)	172.4			8.7			—			171.8
Loss from discontinued operations	(0.2		)	—			—			—			(0.2		)
(Loss) income before equity income of subsidiaries	(9.5		)	172.4			8.7			—			171.6
Equity income of subsidiaries	181.1			—			—			(181.1		)	—
Net income	$	171.6		$	172.4		$	8.7		$	(181.1	)	$	171.6
Comprehensive income	$	240.4		$	221.0		$	8.7		$	(229.7	)	$	240.4

Condensed Consolidating Balance Sheets

(Unaudited)



August 31, 2014	Parent			Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
	(In millions)
Cash and cash equivalents	$	154.9		$	—	$	0.2	$	(0.2	)	$	154.9
Accounts receivable	—			213.1		1.6		—			214.7
Inventories	—			126.4		5.9		—			132.3
Recoverable from the U.S. government, Northrop, and other third parties for environmental remediation costs	0.1			26.0		—		—			26.1
Other receivables, prepaid expenses and other	3.7			22.1		0.9		—			26.7
Income taxes	25.1			—		0.4		(12.1		)	13.4
Deferred income taxes	9.1			—		—		(5.1		)	4.0
Total current assets	192.9			387.6		9.0		(17.4		)	572.1
Property, plant and equipment, net	4.7			360.1		5.8		—			370.6
Recoverable from the U.S. government and other third parties for environmental remediation costs	0.7			82.9		—		—			83.6
Deferred income taxes	52.5			108.4		19.1		—			180.0
Goodwill	—			164.4		—		—			164.4
Intercompany receivable	10.6			—		30.4		(41.0		)	—
Investments in subsidiaries	577.8			—		—		(577.8		)	—
Other noncurrent assets and intangibles, net	29.3			300.1		49.6		—			379.0
Total assets	$	868.5		$	1,403.5	$	113.9	$	(636.2	)	$	1,749.7
Short-term borrowings and current portion of long-term debt	$	5.2		$	0.3	$	—	$	—		$	5.5
Accounts payable	1.8			112.6		1.2		(0.2		)	115.4
Reserves for environmental remediation costs	2.0			33.0		—		—			35.0
Income taxes	—			12.1		—		(12.1		)	—
Other current liabilities and advance payments on contracts	41.9			298.7		3.3		(5.1		)	338.8
Postretirement medical and life insurance benefits	5.5			1.7		—		—			7.2
Total current liabilities	56.4			458.4		4.5		(17.4		)	501.9
Long-term debt	777.6			0.4		—		—			778.0
Reserves for environmental remediation costs	4.5			129.1		—		—			133.6
Pension benefits	21.3			227.0		—		—			248.3
Intercompany payable	—			41.0		—		(41.0		)	—
Postretirement medical and life insurance benefits	37.8			19.3		—		—			57.1
Other noncurrent liabilities	19.4			47.7		12.2		—			79.3
Total liabilities	917.0			922.9		16.7		(58.4		)	1,798.2
Commitments and contingencies (Note 8)
Redeemable common stock	0.2			—		—		—			0.2
Total shareholders’ (deficit) equity	(48.7		)	480.6		97.2		(577.8		)	(48.7		)
Total liabilities, redeemable common stock, and shareholders’ (deficit) equity	$	868.5		$	1,403.5	$	113.9	$	(636.2	)	$	1,749.7



November 30, 2013	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
	(In millions)
Cash and cash equivalents	$	192.7	$	4.9	$	—	$	—		$	197.6
Accounts receivable	—		211.4		2.7		—			214.1
Inventories	—		100.5		5.4		—			105.9
Recoverable from the U.S. government, Northrop, and other third parties for environmental remediation costs	0.4		26.0		—		—			26.4
Other receivables, prepaid expenses and other	2.6		18.8		1.0		—			22.4
Income taxes	30.1		—		—		(17.5		)	12.6
Deferred income taxes	10.9		4.9		1.2		—			17.0
Total current assets	236.7		366.5		10.3		(17.5		)	596.0
Property, plant and equipment, net	4.7		364.4		5.6		—			374.7
Recoverable from the U.S. government and other third parties for environmental remediation costs	0.4		88.3		—		—			88.7
Deferred income taxes	48.8		107.2		19.7		—			175.7
Goodwill	—		159.6		—		—			159.6
Intercompany receivable	33.5		—		32.2		(65.7		)	—
Investments in subsidiaries	534.5		—		—		(534.5		)	—
Other noncurrent assets and intangibles, net	27.7		289.0		43.9		—			360.6
Total assets	$	886.3	$	1,375.0	$	111.7	$	(617.7	)	$	1,755.3
Short-term borrowings and current portion of long-term debt	$	2.7	$	0.2	$	—	$	—		$	2.9
Accounts payable	2.2		119.1		1.2		—			122.5
Reserves for environmental remediation costs	3.8		32.8		—		—			36.6
Income taxes payable	—		16.9		0.6		(17.5		)	—
Postretirement medical and life insurance benefits	5.5		1.8		—		—			7.3
Other current liabilities and advance payments on contracts	41.7		265.9		2.8		—			310.4
Total current liabilities	55.9		436.7		4.6		(17.5		)	479.7
Long-term debt	695.7		0.6		—		—			696.3
Reserves for environmental remediation costs	4.3		130.4		—		—			134.7
Pension benefits	23.6		238.1		—		—			261.7
Intercompany payable	—		65.7		—		(65.7		)	—
Postretirement medical and life insurance benefits	39.8		19.5		—		—			59.3
Other noncurrent liabilities	17.2		45.1		11.5		—			73.8
Total liabilities	836.5		936.1		16.1		(83.2		)	1,705.5
Commitments and contingencies (Note 8)
Redeemable common stock	0.2		—		—		—			0.2
Total shareholders’ equity	49.6		438.9		95.6		(534.5		)	49.6
Total liabilities, redeemable common stock, and shareholders’ equity	$	886.3	$	1,375.0	$	111.7	$	(617.7	)	$	1,755.3

Condensed Consolidating Statements of Cash Flows

(Unaudited)



Nine months ended August 31, 2014	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Net cash (used in) provided by operating activities	$	(15.9	)	$	51.2		$	(1.0	)	$	(0.2	)	$	34.1
Cash flows from investing activities:
Capital expenditures	(0.1		)	(31.2		)	(0.6		)	—			(31.9		)
Other investing activities	0.2			—			—			—			0.2
Net cash provided by (used in) investing activities	0.1			(31.2		)	(0.6		)	—			(31.7		)
Cash flows from financing activities:
Debt repayments / repurchases	(164.8		)	(0.2		)	—			—			(165.0		)
Proceeds from issuance of debt	189.0			—			—			—			189.0
Debt issuance costs	(4.2		)	—			—			—			(4.2		)
Net transfers from (to) parent	22.9			(24.7		)	1.8			—			—
Other financing activities	(64.9		)	—			—			—			(64.9		)
Net cash (used in) provided by financing activities	(22.0		)	(24.9		)	1.8			—			(45.1		)
Net (decrease) increase in cash and cash equivalents	(37.8		)	(4.9		)	0.2			(0.2		)	(42.7		)
Cash and cash equivalents at beginning of year	192.7			4.9			—			—			197.6
Cash and cash equivalents at end of period	$	154.9		$	—		$	0.2		$	(0.2	)	$	154.9



Nine months ended August 31, 2013	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Net cash (used in) provided by operating activities	$	(7.3	)	$	25.7		$	(1.5	)	$	9.6		$	26.5
Cash flows from investing activities:
Purchase of Rocketdyne Business	—			(411.2		)	—			—			(411.2		)
Capital expenditures	—			(38.7		)	—			—			(38.7		)
Purchase of investments	—			(0.5		)	—			—			(0.5		)
Net cash used in investing activities	—			(450.4		)	—			—			(450.4		)
Cash flows from financing activities:
Debt repayments	(1.9		)	(0.1		)	—			—			(2.0		)
Proceeds from issuance of debt	460.0			—			—			—			460.0
Debt issuance costs	(14.7		)	—			—			—			(14.7		)
Net transfers (to) from parent	(426.3		)	424.8			1.5			—			—
Other financing activities	0.4			—			—			—			0.4
Net cash provided by financing activities	17.5			424.7			1.5			—			443.7
Net increase in cash and cash equivalents	10.2			—			—			9.6			19.8
Cash and cash equivalents at beginning of year	172.4			—			—			(10.3		)	162.1
Cash and cash equivalents at end of period	$	182.6		$	—		$	—		$	(0.7	)	$	181.9