Financial Statements of Parent Company Guarantor (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Three months ended September 30, 2017

In millions	Parent Company Guarantor			Subsidiary Guarantor			Subsidiary Issuer			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net sales	$	—		$	—		$	—		$	1,226.8		$	—		$	1,226.8
Cost of goods sold	—			—			—			771.5			—			771.5
Gross profit	—			—			—			455.3			—			455.3
Selling, general and administrative	4.2			—			—			230.5			—			234.7
Research and development	—			—			—			28.4			—			28.4
Operating income (loss)	(4.2		)	—			—			196.4			—			192.2
Loss (earnings) from continuing operations of investment in subsidiaries	(130.9		)	(130.7		)	(115.3		)	—			376.9			—
Other (income) expense:
Equity income of unconsolidated subsidiaries	—			—			—			(0.3		)	—			(0.3		)
Loss on sale of business	—			—			—			3.8			—			3.8
Net interest (income) expense	—			(0.2		)	10.3			3.8			—			13.9
Income (loss) from continuing operations before income taxes	126.7			130.9			105.0			189.1			(376.9		)	174.8
Provision (benefit) for income taxes	(0.4		)	—			—			48.1			—			47.7
Net income (loss) from continuing operations	127.1			130.9			105.0			141.0			(376.9		)	127.1
Loss from sale of discontinued operations, net of tax	—			—			—			(1.7		)	—			(1.7		)
Earnings (loss) from discontinued operations of investment in subsidiaries	(1.7		)	(1.7		)	(1.7		)	—			5.1			—
Net income (loss)	$	125.4		$	129.2		$	103.3		$	139.3		$	(371.8	)	$	125.4
Comprehensive income (loss), net of tax
Net income (loss)	$	125.4		$	129.2		$	103.3		$	139.3		$	(371.8	)	$	125.4
Changes in cumulative translation adjustment	34.5			34.5			34.5			34.5			(103.5		)	34.5
Changes in market value of derivative financial instruments, net of tax	(3.0		)	(3.0		)	(3.0		)	(3.0		)	9.0			(3.0		)
Comprehensive income (loss)	$	156.9		$	160.7		$	134.8		$	170.8		$	(466.3	)	$	156.9

ondensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Nine months endedSeptember 30, 2017

In millions	Parent Company Guarantor			Subsidiary Guarantor			Subsidiary Issuer			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net sales	$	—		$	—		$	—		$	3,675.6		$	—		$	3,675.6
Cost of goods sold	—			—			—			2,314.8			—			2,314.8
Gross profit	—			—			—			1,360.8			—			1,360.8
Selling, general and administrative	0.5			0.2			0.3			729.3			—			730.3
Research and development	—			—			—			87.1			—			87.1
Operating income (loss)	(0.5		)	(0.2		)	(0.3		)	544.4			—			543.4
Loss (earnings) from continuing operations of investment in subsidiaries	(276.2		)	(276.1		)	(427.5		)	—			979.8			—
Other (income) expense:
Equity income of unconsolidated subsidiaries	—			—			—			(0.9		)	—			(0.9		)
Loss on sale of business	—			—			—			3.8			—			3.8
Loss on early extinguishment of debt	—			—			91.0			10.4			—			101.4
Net interest (income) expense	—			(0.3		)	60.6			13.9			—			74.2
Income (loss) from continuing operations before income taxes	275.7			276.2			275.6			517.2			(979.8		)	364.9
Provision (benefit) for income taxes	(0.4		)	—			—			89.2			—			88.8
Net income (loss) from continuing operations	276.1			276.2			275.6			428.0			(979.8		)	276.1
Income from discontinued operations, net of tax	—			—			—			1.9			—			1.9
Gain from sale of discontinued operations, net of tax	—			—			—			198.9			—			198.9
Earnings (loss) from discontinued operations of investment in subsidiaries	200.8			200.8			200.8			—			(602.4		)	—
Net income (loss)	$	476.9		$	477.0		$	476.4		$	628.8		$	(1,582.2	)	$	476.9
Comprehensive income (loss), net of tax
Net income (loss)	$	476.9		$	477.0		$	476.4		$	628.8		$	(1,582.2	)	$	476.9
Changes in cumulative translation adjustment	502.8			502.8			502.8			502.8			(1,508.4		)	502.8
Changes in market value of derivative financial instruments, net of tax	(2.3		)	(2.3		)	(2.3		)	(2.3		)	6.9			(2.3		)
Comprehensive income (loss)	$	977.4		$	977.5		$	976.9		$	1,129.3		$	(3,083.7	)	$	977.4

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Three months ended September 30, 2016

In millions	Parent Company Guarantor			Subsidiary Guarantor			Subsidiary Issuer			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net sales	$	—		$	—		$	—		$	1,210.7		$	—		$	1,210.7
Cost of goods sold	—			—			—			769.8			—			769.8
Gross profit	—			—			—			440.9			—			440.9
Selling, general and administrative	—			—			0.3			228.1			—			228.4
Research and development	—			—			—			29.7			—			29.7
Operating income	—			—			(0.3		)	183.1			—			182.8
Loss (earnings) from continuing operations of investment in subsidiaries	(117.5		)	(117.5		)	(145.6		)	—			380.6			—
Other (income) expense:
Equity income of unconsolidated subsidiaries	—			—			—			(1.2		)	—			(1.2		)
Net interest expense	—			—			27.8			6.5			—			34.3
Income (loss) from continuing operations before income taxes	117.5			117.5			117.5			177.8			(380.6		)	149.7
Provision for income taxes	—			—			—			32.2			—			32.2
Net income (loss) from continuing operations	117.5			117.5			117.5			145.6			(380.6		)	117.5
Income from discontinued operations, net of tax	—			—			—			22.9			—			22.9
Gain from sale of discontinued operations, net of tax	—			—			—			0.6			—			0.6
Earnings (loss) from discontinued operations of investment in subsidiaries	23.5			23.5			23.5			—			(70.5		)	—
Net income (loss)	$	141.0		$	141.0		$	141.0		$	169.1		$	(451.1	)	$	141.0
Comprehensive income (loss), net of tax
Net income (loss)	$	141.0		$	141.0		$	141.0		$	169.1		$	(451.1	)	$	141.0
Changes in cumulative translation adjustment	34.9			34.9			34.9			34.9			(104.7		)	34.9
Changes in market value of derivative financial instruments, net of tax	(4.8		)	(4.8		)	(4.8		)	(4.8		)	14.4			(4.8		)
Comprehensive income (loss)	$	171.1		$	171.1		$	171.1		$	199.2		$	(541.4	)	$	171.1

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Nine months endedSeptember 30, 2016

In millions	Parent Company Guarantor			Subsidiary Guarantor			Subsidiary Issuer			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net sales	$	—		$	—		$	—		$	3,701.9		$	—		$	3,701.9
Cost of goods sold	—			—			—			2,347.9			—			2,347.9
Gross profit	—			—			—			1,354.0			—			1,354.0
Selling, general and administrative	1.7			—			1.3			725.2			—			728.2
Research and development	—			—			—			86.9			—			86.9
Operating income (loss)	(1.7		)	—			(1.3		)	541.9			—			538.9
Loss (earnings) from continuing operations of investment in subsidiaries	(343.6		)	(343.6		)	(428.8		)	—			1,116.0			—
Other (income) expense:
Equity income of unconsolidated subsidiaries	—			—			—			(2.7		)	—			(2.7		)
Net interest expense	—			—			83.9			22.0			—			105.9
Income (loss) from continuing operations before income taxes	341.9			343.6			343.6			522.6			(1,116.0		)	435.7
Provision (benefit) for income taxes	(0.1		)	—			—			93.8			—			93.7
Net income (loss) from continuing operations	342.0			343.6			343.6			428.8			(1,116.0		)	342.0
Income from discontinued operations, net of tax	—			—			—			48.6			—			48.6
Gain from sale of discontinued operations, net of tax	—			—			—			0.6			—			0.6
Earnings (loss) from discontinued operations of investment in subsidiaries	49.2			49.2			49.2			—			(147.6		)	—
Net income (loss)	$	391.2		$	392.8		$	392.8		$	478.0		$	(1,263.6	)	$	391.2
Comprehensive income (loss), net of tax
Net income (loss)	$	391.2		$	392.8		$	392.8		$	478.0		$	(1,263.6	)	$	391.2
Changes in cumulative translation adjustment	37.1			37.1			37.1			37.1			(111.3		)	37.1
Changes in market value of derivative financial instruments, net of tax	(8.6		)	(8.6		)	(8.6		)	(8.6		)	25.8			(8.6		)
Comprehensive income (loss)	$	419.7		$	421.3		$	421.3		$	506.5		$	(1,349.1	)	$	419.7

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

September 30, 2017

In millions	Parent Company Guarantor		Subsidiary Guarantor		Subsidiary Issuer		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Assets
Current assets
Cash and cash equivalents	$	0.1	$	—	$	0.3	$	108.1	$	—		$	108.5
Accounts and notes receivable, net	2.5		—		—		765.7		—			768.2
Inventories	—		—		—		579.2		—			579.2
Other current assets	2.3		2.0		7.3		250.2		(11.9		)	249.9
Total current assets	4.9		2.0		7.6		1,703.2		(11.9		)	1,705.8
Property, plant and equipment, net	—		—		—		547.1		—			547.1
Other assets
Investments in subsidiaries	4,993.2		4,880.7		6,989.7		—		(16,863.6		)	—
Goodwill	—		—		—		4,343.6		—			4,343.6
Intangibles, net	—		—		—		1,607.3		—			1,607.3
Other non-current assets	121.4		110.9		592.2		1,391.3		(1,790.8		)	425.0
Total other assets	5,114.6		4,991.6		7,581.9		7,342.2		(18,654.4		)	6,375.9
Total assets	$	5,119.5	$	4,993.6	$	7,589.5	$	9,592.5	$	(18,666.3	)	$	8,628.8
Liabilities and Equity
Current liabilities
Accounts payable	$	1.3	$	—	$	—	$	382.1	$	—		$	383.4
Employee compensation and benefits	0.3		—		—		160.2		—			160.5
Other current liabilities	74.4		0.4		4.7		461.1		(11.9		)	528.7
Total current liabilities	76.0		0.4		4.7		1,003.4		(11.9		)	1,072.6
Other liabilities
Long-term debt	—		—		2,704.3		589.9		(1,790.8		)	1,503.4
Pension and other post-retirement compensation and benefits	—		—		—		275.1		—			275.1
Deferred tax liabilities	—		—		—		549.5		—			549.5
Other non-current liabilities	34.9		—		—		184.7		—			219.6
Total liabilities	110.9		0.4		2,709.0		2,602.6		(1,802.7		)	3,620.2
Equity	5,008.6		4,993.2		4,880.5		6,989.9		(16,863.6		)	5,008.6
Total liabilities and equity	$	5,119.5	$	4,993.6	$	7,589.5	$	9,592.5	$	(18,666.3	)	$	8,628.8

Condensed Consolidating Balance Sheet

December 31, 2016

In millions	Parent Company Guarantor		Subsidiary Guarantor		Subsidiary Issuer		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Assets
Current assets
Cash and cash equivalents	$	—	$	—	$	—	$	238.5	$	—		$	238.5
Accounts and notes receivable, net	0.1		—		—		763.9		—			764.0
Inventories	—		—		—		524.2		—			524.2
Other current assets	1.2		4.1		1.1		237.8		9.2			253.4
Current assets held for sale	—		—		—		891.9		—			891.9
Total current assets	1.3		4.1		1.1		2,656.3		9.2			2,672.0
Property, plant and equipment, net	—		—		—		538.6		—			538.6
Other assets
Investments in subsidiaries	4,509.5		4,471.4		9,295.5		—		(18,276.4		)	—
Goodwill	—		—		—		4,217.4		—			4,217.4
Intangibles, net	—		—		—		1,631.8		—			1,631.8
Other non-current assets	2.2		35.2		717.8		1,568.9		(2,142.0		)	182.1
Non-current assets held for sale	—		—		—		2,292.9		—			2,292.9
Total other assets	4,511.7		4,506.6		10,013.3		9,711.0		(20,418.4		)	8,324.2
Total assets	$	4,513.0	$	4,510.7	$	10,014.4	$	12,905.9	$	(20,409.2	)	$	11,534.8
Liabilities and Equity
Current liabilities
Current maturities of long-term debt and short-term borrowings	$	—	$	—	$	—	$	0.8	$	—		$	0.8
Accounts payable	0.7		—		0.1		435.8		—			436.6
Employee compensation and benefits	0.8		—		—		165.3		—			166.1
Other current liabilities	95.2		1.2		26.7		379.2		9.2			511.5
Current liabilities held for sale	—		—		—		356.2		—			356.2
Total current liabilities	96.7		1.2		26.8		1,337.3		9.2			1,471.2
Other liabilities
Long-term debt	148.1		—		5,515.9		756.4		(2,142.0		)	4,278.4
Pension and other post-retirement compensation and benefits	—		—		—		253.4		—			253.4
Deferred tax liabilities	—		—		—		609.5		—			609.5
Other non-current liabilities	13.8		—		—		148.2		—			162.0
Non-current liabilities held for sale	—		—		—		505.9		—			505.9
Total liabilities	258.6		1.2		5,542.7		3,610.7		(2,132.8		)	7,280.4
Equity	4,254.4		4,509.5		4,471.7		9,295.2		(18,276.4		)	4,254.4
Total liabilities and equity	$	4,513.0	$	4,510.7	$	10,014.4	$	12,905.9	$	(20,409.2	)	$	11,534.8

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Nine months endedSeptember 30, 2017

In millions	Parent Company Guarantor			Subsidiary Guarantor			Subsidiary Issuer			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Operating activities
Net cash provided by (used for) operating activities	$	356.3		$	475.5		$	458.0		$	654.1		$	(1,582.1	)	$	361.8
Investing activities
Capital expenditures	—			—			—			(50.5		)	—			(50.5		)
Proceeds from sale of property and equipment	—			—			—			7.1			—			7.1
Proceeds from sale of businesses, net	—			—			2,765.6			(1.6		)	—			2,764.0
Acquisitions, net of cash acquired	—			—			—			(59.5		)	—			(59.5		)
Net intercompany loan activity	—			—			119.4			135.9			(255.3		)	—
Net cash provided by (used for) investing activities of continuing operations	—			—			2,885.0			31.4			(255.3		)	2,661.1
Net cash provided by (used for) investing activities of discontinued operations	—			—			—			(6.5		)	—			(6.5		)
Net cash provided by (used for) investing activities	—			—			2,885.0			24.9			(255.3		)	2,654.6
Financing activities
Net repayments of short-term borrowings	—			—			—			(0.8		)	—			(0.8		)
Net repayments of commercial paper and revolving long-term debt	—			—			(832.7		)	(9.6		)	—			(842.3		)
Repayments of long-term debt	—			—			(1,917.8		)	(91.5		)	—			(2,009.3		)
Premium paid on early extinguishment of debt	—			—			(86.0		)	(8.9		)	—			(94.9		)
Net change in advances to subsidiaries	(101.6		)	(475.5		)	(572.9		)	(687.4		)	1,837.4			—
Shares issued to employees, net of shares withheld	34.3			—			—			—			—			34.3
Repurchases of ordinary shares	(100.0		)	—			—			—			—			(100.0		)
Dividends paid	(188.9		)	—			—			—			—			(188.9		)
Net cash provided by (used for) financing activities	(356.2		)	(475.5		)	(3,409.4		)	(798.2		)	1,837.4			(3,201.9		)
Effect of exchange rate changes on cash and cash equivalents	—			—			66.7			(11.2		)	—			55.5
Change in cash and cash equivalents	0.1			—			0.3			(130.4		)	—			(130.0		)
Cash and cash equivalents, beginning of period	—			—			—			238.5			—			238.5
Cash and cash equivalents, end of period	$	0.1		$	—		$	0.3		$	108.1		$	—		$	108.5

Condensed Consolidating Statement of Cash Flows

Nine months endedSeptember 30, 2016

In millions	Parent Company Guarantor			Subsidiary Guarantor			Subsidiary Issuer			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Operating activities
Net cash provided by (used for) operating activities	$	364.1		$	327.7		$	327.1		$	653.9		$	(1,116.0	)	$	556.8
Investing activities
Capital expenditures	—			—			—			(94.5		)	—			(94.5		)
Proceeds from sale of property and equipment	—			—			—			24.1			—			24.1
Net intercompany loan activity	—			—			497.9			(193.9		)	(304.0		)	—
Other	—			—			—			(3.8		)	—			(3.8		)
Net cash provided by (used for) investing activities of continuing operations	—			—			497.9			(268.1		)	(304.0		)	(74.2		)
Net cash provided by (used for) investing activities of discontinued operations	—			—			—			(4.3		)	—			(4.3		)
Net cash provided by (used for) investing activities	—			—			497.9			(272.4		)	(304.0		)	(78.5		)
Financing activities
Net repayments of commercial paper and revolving long-term debt	—			—			(280.2		)	(10.9		)	—			(291.1		)
Repayments of long-term debt	—			—			—			(0.7		)	—			(0.7		)
Net change in advances to subsidiaries	(202.6		)	(327.7		)	(557.1		)	(332.6		)	1,420.0			—
Excess tax benefits from share-based compensation	—			—			—			8.8			—			8.8
Shares issued to employees, net of shares withheld	20.1			—			—			—			—			20.1
Dividends paid	(181.6		)	—			—			—			—			(181.6		)
Net cash provided by (used for) financing activities	(364.1		)	(327.7		)	(837.3		)	(335.4		)	1,420.0			(444.5		)
Effect of exchange rate changes on cash and cash equivalents	—			—			12.2			(1.4		)	—			10.8
Change in cash and cash equivalents	—			—			(0.1		)	44.7			—			44.6
Cash and cash equivalents, beginning of period	—			—			0.1			126.2			—			126.3
Cash and cash equivalents, end of period	$	—		$	—		$	—		$	170.9		$	—		$	170.9