Guarantor and Non-Guarantor Financial Statements (Tables)

6 Months Ended

Jun. 30, 2015

Guarantor and Non-Guarantor Financial Statement [Abstract]

Schedule of Condensed Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

June 30, 2015

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	49.8	$	4.5	$	—		$	54.3
Short-term investments	—		30.0		—		—			30.0
Receivables:
Trade receivables — net	—		134.7		3.9		—			138.6
Intercompany receivables	29.2		78.7		1.8		(109.7		)	—
Other	—		2.6		3.3		—			5.9
Inventories	—		212.8		6.1		(1.6		)	217.3
Prepaid expenses and other current assets	0.2		99.8		0.4		—			100.4
Total current assets	29.4		608.4		20.0		(111.3		)	546.5
Investments in and advances to subsidiaries	1,026.8		33.6		—		(1,060.4		)	—
Property, plant and equipment — net	—		439.5		25.0		—			464.5
Long-term intercompany receivables	—		—		10.2		(10.2		)	—
Deferred tax assets — net	—		141.6		—		7.1			148.7
Intangible assets — net	—		31.3		—		—			31.3
Goodwill	—		37.2		—		—			37.2
Other assets	4.0		19.0		0.1		—			23.1
Total	$	1,060.2	$	1,310.6	$	55.3	$	(1,174.8	)	$	1,251.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	0.6	$	67.5	$	9.3	$	—		$	77.4
Intercompany payable	74.3		39.5		3.7		(117.5		)	—
Accrued salaries, wages and related expenses	—		31.5		2.9		—			34.4
Other accrued liabilities	1.5		50.1		—		—			51.6
Short-term capital lease	—		0.1		—		—			0.1
Total current liabilities	76.4		188.7		15.9		(117.5		)	163.5
Net liabilities of Salaried VEBA	—		16.4		—		—			16.4
Deferred tax liabilities	—		—		0.8		—			0.8
Long-term intercompany payable	—		10.2		—		(10.2		)	—
Long-term liabilities	—		80.9		5.9		—			86.8
Long-term debt	225.0		—		—		—			225.0
Total liabilities	301.4		296.2		22.6		(127.7		)	492.5
Total stockholders’ equity	758.8		1,014.4		32.7		(1,047.1		)	758.8
Total	$	1,060.2	$	1,310.6	$	55.3	$	(1,174.8	)	$	1,251.3

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

December 31, 2014

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	175.3	$	2.4	$	—		$	177.7
Short-term investments	—		114.0		—		—			114.0
Receivables:
Trade receivables — net	—		126.1		3.2		—			129.3
Intercompany receivables	204.2		4.0		0.9		(209.1		)	—
Other	—		5.6		5.3		—			10.9
Inventories	—		208.0		7.6		(0.9		)	214.7
Prepaid expenses and other current assets	85.1		93.1		0.4		—			178.6
Total current assets	289.3		726.1		19.8		(210.0		)	825.2
Investments in and advances to subsidiaries	1,209.2		32.5		—		(1,241.7		)	—
Property, plant and equipment — net	—		437.4		17.5		—			454.9
Long-term intercompany receivables	—		—		15.9		(15.9		)	—
Net assets of Union VEBA	—		340.1		—		—			340.1
Deferred tax assets — net	—		23.8		—		7.1			30.9
Intangible assets — net	—		32.1		—		—			32.1
Goodwill	—		37.2		—		—			37.2
Other assets	4.4		18.8		0.1		—			23.3
Total	$	1,502.9	$	1,648.0	$	53.3	$	(1,460.5	)	$	1,743.7
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1.3	$	73.8	$	6.3	$	—		$	81.4
Intercompany payable	—		221.3		3.3		(224.6		)	—
Accrued salaries, wages and related expenses	—		36.5		3.1		—			39.6
Other accrued liabilities	88.2		43.8		0.8		—			132.8
Current portion of long-term debt	172.5		—		—		—			172.5
Short-term capital lease	—		0.1		—		—			0.1
Total current liabilities	262.0		375.5		13.5		(224.6		)	426.4
Net liabilities of Salaried VEBA	—		17.2		—		—			17.2
Deferred tax liabilities	—		—		0.9		—			0.9
Long-term intercompany payable	—		15.9		—		(15.9		)	—
Long-term liabilities	—		50.3		8.0		—			58.3
Long-term debt	225.0		—		—		—			225.0
Total liabilities	487.0		458.9		22.4		(240.5		)	727.8
Total stockholders’ equity	1,015.9		1,189.1		30.9		(1,220.0		)	1,015.9
Total	$	1,502.9	$	1,648.0	$	53.3	$	(1,460.5	)	$	1,743.7

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended June 30, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net sales	$	—		$	358.3		$	33.5	$	(24.6	)	$	367.2
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			289.4			28.9		(23.5		)	294.8
Unrealized loss on derivative instruments	—			1.5			—		—			1.5
Depreciation and amortization	—			7.8			0.3		—			8.1
Selling, general, administrative, research and development:
Selling, general, administrative, research and development	1.4			19.5			3.2		(0.5		)	23.6
Net periodic postretirement benefit cost relating to Salaried VEBA	—			0.6			—		—			0.6
Loss on removal of Union VEBA net assets	—			1.6			—		—			1.6
Total selling, general, administrative, research and development	1.4			21.7			3.2		(0.5		)	25.8
Total costs and expenses	1.4			320.4			32.4		(24.0		)	330.2
Operating (loss) income	(1.4		)	37.9			1.1		(0.6		)	37.0
Other (expense) income:
Interest (expense)	(4.9		)	(0.3		)	—		—			(5.2		)
Other income, net	—			0.3			0.1		—			0.4
(Loss) income before income taxes	(6.3		)	37.9			1.2		(0.6		)	32.2
Income tax (provision) benefit	—			(15.8		)	1.4		2.4			(12.0		)
Earnings in equity of subsidiaries	26.5			2.1			—		(28.6		)	—
Net income	$	20.2		$	24.2		$	2.6	$	(26.8	)	$	20.2
Comprehensive income	$	20.6		$	24.6		$	2.6	$	(27.2	)	$	20.6

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

(In millions of dollars)

Six Months Ended June 30, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net sales	$	—		$	721.7		$	68.2	$	(51.0	)	$	738.9
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			585.8			60.5		(49.2		)	597.1
Unrealized gains on derivative instruments	—			6.0			—		—			6.0
Depreciation and amortization	—			15.5			0.6		—			16.1
Selling, general, administrative, research and development:
Selling, general, administrative, research and development	2.4			40.2			4.8		(1.1		)	46.3
Net periodic postretirement benefit cost relating to VEBAs	—			1.2			—		—			1.2
Loss on removal of Union VEBA net assets	—			493.8			—		—			493.8
Total selling, general, administrative, research and development	2.4			535.2			4.8		(1.1		)	541.3
Total costs and expenses	2.4			1,142.5			65.9		(50.3		)	1,160.5
Operating (loss) income	(2.4		)	(420.8		)	2.3		(0.7		)	(421.6		)
Other (expense) income:
Interest (expense) income	(14.4		)	(0.8		)	—		0.2			(15.0		)
Other income (expense), net	—			0.8			0.2		(0.2		)	0.8
(Loss) income before income taxes	(16.8		)	(420.8		)	2.5		(0.7		)	(435.8		)
Income tax benefit	—			156.1			1.4		6.3			163.8
(Loss) earnings in equity of subsidiaries	(255.2		)	3.2			—		252.0			—
Net (loss) income	$	(272.0	)	$	(261.5	)	$	3.9	$	257.6		$	(272.0	)
Comprehensive (loss) income	$	(204.7	)	$	(194.3	)	$	4.0	$	190.3		$	(204.7	)

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended June 30, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	335.7		$	34.0		$	(25.6	)	$	344.1
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			270.8			29.7			(25.0		)	275.5
Unrealized gains on derivative instruments	—			(1.6		)	—			—			(1.6		)
Depreciation and amortization	—			7.5			0.2			—			7.7
Selling, general, administrative, research and development:
Selling, general, administrative, research and development	1.2			18.5			2.9			(0.6		)	22.0
Net periodic postretirement benefit income relating to VEBAs	—			(6.1		)	—			—			(6.1		)
Total selling, general, administrative, research and development	1.2			12.4			2.9			(0.6		)	15.9
Other operating charges, net	—			0.2			—			—			0.2
Total costs and expenses	1.2			289.3			32.8			(25.6		)	297.7
Operating (loss) income	(1.2		)	46.4			1.2			—			46.4
Other (expense) income:
Interest expense	(9.3		)	—			—			0.1			(9.2		)
Other income, net	0.4			0.8			0.7			(0.1		)	1.8
(Loss) income before income taxes	(10.1		)	47.2			1.9			—			39.0
Income tax (provision) benefit	—			(17.8		)	(0.5		)	3.8			(14.5		)
Earnings in equity of subsidiaries	34.6			1.4			—			(36.0		)	—
Net income	$	24.5		$	30.8		$	1.4		$	(32.2	)	$	24.5
Comprehensive income	$	26.6		$	33.0		$	1.3		$	(34.3	)	$	26.6

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Six Months Ended June 30, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	662.8		$	67.1		$	(50.7	)	$	679.2
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			549.7			58.1			(49.4		)	558.4
Unrealized gains on derivative instruments	—			(3.6		)	—			—			(3.6		)
Depreciation and amortization	—			14.6			0.5			—			15.1
Selling, general, administrative, research and development:
Selling, general, administrative, research and development	2.2			35.1			6.2			(1.2		)	42.3
Net periodic postretirement benefit income relating to VEBAs	—			(11.7		)	—			—			(11.7		)
Total selling, general, administrative, research and development	2.2			23.4			6.2			(1.2		)	30.6
Other operating charges, net	—			0.2			—			—			0.2
Total costs and expenses	2.2			584.3			64.8			(50.6		)	600.7
Operating (loss) income	(2.2		)	78.5			2.3			(0.1		)	78.5
Other (expense) income:
Interest (expense) income	(18.6		)	0.4			—			0.2			(18.0		)
Other income, net	1.4			2.0			0.5			(0.2		)	3.7
(Loss) income before income taxes	(19.4		)	80.9			2.8			(0.1		)	64.2
Income tax (provision) benefit	—			(30.4		)	(0.8		)	7.3			(23.9		)
Earnings in equity of subsidiaries	59.7			1.8			—			(61.5		)	—
Net income	$	40.3		$	52.3		$	2.0		$	(54.3	)	$	40.3
Comprehensive income	$	43.3		$	55.2		$	2.1		$	(57.3	)	$	43.3

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions of dollars)

Six Months Ended June 30, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	233.4		$	(190.1	)	$	5.0		$	—	$	48.3
Cash flows from investing activities:
Capital expenditures	—			(14.3		)	(8.6		)	—		(22.9		)
Purchase of available for sale securities	—			(0.5		)	—			—		(0.5		)
Proceeds from disposition of available for sale securities	—			84.0			—			—		84.0
Net cash provided by (used in) investing activities	—			69.2			(8.6		)	—		60.6
Cash flows from financing activities:
Repayment of Convertible Notes	(175.0		)	—			—			—		(175.0		)
Proceeds from cash-settled call options related to repayment of Convertible Notes	94.9			—			—			—		94.9
Payment for conversion premium related to repayment of Convertible Notes	(94.9		)	—			—			—		(94.9		)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	—			1.1			—			—		1.1
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares	(3.0		)	—			—			—		(3.0		)
Repurchase of common stock	(41.4		)	—			—			—		(41.4		)
Cash dividend paid to stockholders	(14.0		)	—			—			—		(14.0		)
Intercompany loan	—			(5.7		)	5.7			—		—
Net cash (used in) provided by financing activities	(233.4		)	(4.6		)	5.7			—		(232.3		)
Net (decrease) increase in cash and cash equivalents during the period	—			(125.5		)	2.1			—		(123.4		)
Cash and cash equivalents at beginning of period	—			175.3			2.4			—		177.7
Cash and cash equivalents at end of period	$	—		$	49.8		$	4.5		$	—	$	54.3

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions of dollars)

Six Months Ended June 30, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	7.6		$	56.9		$	6.8		$	—	$	71.3
Cash flows from investing activities:
Capital expenditures	—			(29.4		)	(0.7		)	—		(30.1		)
Purchase of available for sale securities	—			(23.4		)	—			—		(23.4		)
Proceeds from disposition of available for sale securities	—			25.0			—			—		25.0
Net cash used in investing activities	—			(27.8		)	(0.7		)	—		(28.5		)
Cash flows from financing activities:
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	—			0.8			—			—		0.8
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares	(2.4		)	—			—			—		(2.4		)
Repurchase of common stock	(23.7		)	—			—			—		(23.7		)
Cash dividend paid to stockholders	(12.8		)	—			—			—		(12.8		)
Intercompany loan	31.3			(22.9		)	(8.4		)	—		—
Net cash used in financing activities	(7.6		)	(22.1		)	(8.4		)	—		(38.1		)
Net increase (decrease) in cash and cash equivalents during the period	—			7.0			(2.3		)	—		4.7
Cash and cash equivalents at beginning of period	5.0			157.7			6.8			—		169.5
Cash and cash equivalents at end of period	$	5.0		$	164.7		$	4.5		$	—	$	174.2