Condensed Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

Guarantor and Non-Guarantor Financial Statement [Abstract]

Condensed Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

June 30, 2017

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	49.9	$	7.2	$	—		$	57.1
Short-term investments	—		175.7		—		—			175.7
Receivables:
Trade receivables, net	—		139.0		6.6		—			145.6
Intercompany loans receivable	66.9		0.2		0.6		(67.7		)	—
Other	—		10.0		0.7		—			10.7
Inventories	—		196.7		7.7		(4.5		)	199.9
Prepaid expenses and other current assets	0.2		26.3		0.3		—			26.8
Total current assets	67.1		597.8		23.1		(72.2		)	615.8
Investments in and advances to subsidiaries	1,075.5		41.3		—		(1,116.8		)	—
Property, plant and equipment, net	—		521.6		30.5		—			552.1
Long-term intercompany loans receivable	—		—		2.7		(2.7		)	—
Deferred tax assets, net	—		133.5		—		4.8			138.3
Intangible assets, net	—		25.7		—		—			25.7
Goodwill	—		18.8		—		—			18.8
Other assets	—		36.0		—		—			36.0
Total	$	1,142.6	$	1,374.7	$	56.3	$	(1,186.9	)	$	1,386.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1.8	$	77.0	$	5.4	$	—		$	84.2
Intercompany loans payable	—		67.6		0.1		(67.7		)	—
Accrued salaries, wages and related expenses	—		33.1		1.5		—			34.6
Other accrued liabilities	2.8		39.3		0.1		(4.7		)	37.5
Total current liabilities	4.6		217.0		7.1		(72.4		)	156.3
Net liabilities of Salaried VEBA	—		28.0		—		—			28.0
Deferred tax liabilities	—		—		3.3		—			3.3
Long-term intercompany loans payable	—		2.7		—		(2.7		)	—
Long-term liabilities	—		58.5		2.6		—			61.1
Long-term debt	369.2		—		—		—			369.2
Total liabilities	373.8		306.2		13.0		(75.1		)	617.9
Total stockholders' equity	768.8		1,068.5		43.3		(1,111.8		)	768.8
Total	$	1,142.6	$	1,374.7	$	56.3	$	(1,186.9	)	$	1,386.7

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

December 31, 2016

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	52.9	$	2.3		$	—		$	55.2
Short-term investments	—		231.0		—			—			231.0
Receivables:
Trade receivables, net	—		133.1		4.6			—			137.7
Intercompany receivables	85.8		0.1		0.6			(86.5		)	—
Other	—		11.4		0.5			—			11.9
Inventories	—		197.5		8.0			(3.9		)	201.6
Prepaid expenses and other current assets	0.1		18.0		0.9			(0.5		)	18.5
Total current assets	85.9		644.0		16.9			(90.9		)	655.9
Investments in and advances to subsidiaries	1,012.4		40.1		—			(1,052.5		)	—
Property, plant and equipment, net	—		499.5		31.4			—			530.9
Long-term intercompany receivables	80.2		—		4.9			(85.1		)	—
Deferred tax assets, net	—		154.9		—			4.8			159.7
Intangible assets, net	—		26.4		—			—			26.4
Goodwill	—		37.2		—			—			37.2
Other assets	—		33.4		—			—			33.4
Total	$	1,178.5	$	1,435.5	$	53.2		$	(1,223.7	)	$	1,443.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2.2	$	68.9	$	4.7		$	—		$	75.8
Intercompany payable	—		86.4		0.1			(86.5		)	—
Accrued salaries, wages and related expenses	—		47.2		1.9			—			49.1
Other accrued liabilities	2.9		52.6		(0.7		)	(14.7		)	40.1
Total current liabilities	5.1		255.1		6.0			(101.2		)	165.0
Net liabilities of Salaried VEBA	—		28.6		—			—			28.6
Deferred tax liabilities	—		—		3.3			—			3.3
Long-term intercompany payable	—		85.1		—			(85.1		)	—
Long-term liabilities	—		70.5		2.7			—			73.2
Long-term debt	368.7		—		—			—			368.7
Total liabilities	373.8		439.3		12.0			(186.3		)	638.8
Total stockholders' equity	804.7		996.2		41.2			(1,037.4		)	804.7
Total	$	1,178.5	$	1,435.5	$	53.2		$	(1,223.7	)	$	1,443.5

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended June 30, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	347.0		$	29.8		$	(20.5	)	$	356.3
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			271.6			25.7			(19.6		)	277.7
Unrealized loss on derivative instruments	—			11.9			—			—			11.9
Depreciation and amortization	—			9.0			0.5			—			9.5
Selling, general, administrative, research and development:
Selling, general, administrative, research and development	1.5			22.8			2.5			(0.5		)	26.3
Net periodic postretirement benefit cost relating to Salaried VEBA	—			1.1			—			—			1.1
Total selling, general, administrative, research and development	1.5			23.9			2.5			(0.5		)	27.4
Goodwill impairment	—			18.4			—			—			18.4
Total costs and expenses	1.5			334.8			28.7			(20.1		)	344.9
Operating (loss) income	(1.5		)	12.2			1.1			(0.4		)	11.4
Other (expense) income:
Interest expense	(4.6		)	(0.9		)	—			—			(5.5		)
Other income, net	—			0.8			0.2			—			1.0
(Loss) income before income taxes	(6.1		)	12.1			1.3			(0.4		)	6.9
Income tax provision	—			(4.2		)	(0.3		)	2.3			(2.2		)
Earnings in equity of subsidiaries	10.8			0.6			—			(11.4		)	—
Net income	$	4.7		$	8.5		$	1.0		$	(9.5	)	$	4.7
Comprehensive income	$	5.8		$	9.6		$	1.0		$	(10.6	)	$	5.8

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Six Months Ended June 30, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	693.8		$	59.1		$	(41.3	)	$	711.6
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			544.2			51.0			(39.7		)	555.5
Unrealized gain on derivative instruments	—			(3.2		)	—			—			(3.2		)
Depreciation and amortization	—			18.0			1.1			—			19.1
Selling, general, administrative, research and development:
Selling, general, administrative, research and development	2.4			43.7			4.9			(1.0		)	50.0
Net periodic postretirement benefit cost relating to Salaried VEBA	—			2.2			—			—			2.2
Gain on removal of Union VEBA net assets	—			(1.3		)	—			—			(1.3		)
Total selling, general, administrative, research and development	2.4			44.6			4.9			(1.0		)	50.9
Goodwill impairment	—			18.4			—			—			18.4
Total costs and expenses	2.4			622.0			57.0			(40.7		)	640.7
Operating (loss) income	(2.4		)	71.8			2.1			(0.6		)	70.9
Other (expense) income:
Interest expense	(10.3		)	(0.8		)	—			—			(11.1		)
Other income, net	—			1.4			0.2			—			1.6
(Loss) income before income taxes	(12.7		)	72.4			2.3			(0.6		)	61.4
Income tax provision	—			(25.0		)	(0.5		)	4.8			(20.7		)
Earnings in equity of subsidiaries	53.4			1.2			—			(54.6		)	—
Net income	$	40.7		$	48.6		$	1.8		$	(50.4	)	$	40.7
Comprehensive income	$	43.1		$	51.0		$	1.8		$	(52.8	)	$	43.1

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended June 30, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	327.3		$	27.6		$	(20.0	)	$	334.9
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			246.0			23.5			(19.1		)	250.4
Unrealized gain on derivative instruments	—			(10.9		)	—			—			(10.9		)
Depreciation and amortization	—			8.5			0.5			—			9.0
Selling, general, administrative, research and development:
Selling, general, administrative, research and development	1.6			23.8			3.0			(0.9		)	27.5
Net periodic postretirement benefit cost relating to Salaried VEBA	—			0.9			—			—			0.9
Total selling, general, administrative, research and development	1.6			24.7			3.0			(0.9		)	28.4
Other operating charges, net	—			0.1			—			—			0.1
Total costs and expenses	1.6			268.4			27.0			(20.0		)	277.0
Operating (loss) income	(1.6		)	58.9			0.6			—			57.9
Other (expense) income:
Interest (expense) income	(5.9		)	0.4			—			—			(5.5		)
Other (expense) income, net	(11.0		)	0.2			0.1			—			(10.7		)
(Loss) income before income taxes	(18.5		)	59.5			0.7			—			41.7
Income tax provision	—			(22.6		)	(0.2		)	7.1			(15.7		)
Earnings in equity of subsidiaries	44.5			0.3			—			(44.8		)	—
Net income	$	26.0		$	37.2		$	0.5		$	(37.7	)	$	26.0
Comprehensive income	$	26.9		$	38.1		$	0.5		$	(38.6	)	$	26.9

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Six Months Ended June 30, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	663.0		$	54.0		$	(38.9	)	$	678.1
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			503.1			46.6			(37.3		)	512.4
Lower of cost or market inventory write-down	—			4.9			—			—			4.9
Unrealized gain on derivative instruments	—			(14.9		)	—			—			(14.9		)
Depreciation and amortization	—			16.7			1.0			—			17.7
Selling, general, administrative, research and development:
Selling, general, administrative, research and development	2.4			47.4			5.2			(1.4		)	53.6
Net periodic postretirement benefit cost relating to Salaried VEBA	—			1.7			—			—			1.7
Gain on removal of Union VEBA net assets	—			(0.1		)	—			—			(0.1		)
Total selling, general, administrative, research and development	2.4			49.0			5.2			(1.4		)	55.2
Other operating charges, net	—			0.1			—			—			0.1
Total costs and expenses	2.4			558.9			52.8			(38.7		)	575.4
Operating (loss) income	(2.4		)	104.1			1.2			(0.2		)	102.7
Other (expense) income:
Interest expense	(10.2		)	1.0			—			—			(9.2		)
Other (expense) income, net	(11.0		)	0.5			0.1			—			(10.4		)
(Loss) income before income taxes	(23.6		)	105.6			1.3			(0.2		)	83.1
Income tax provision	—			(39.5		)	(0.4		)	9.1			(30.8		)
Earnings in equity of subsidiaries	75.9			0.6			—			(76.5		)	—
Net income	$	52.3		$	66.7		$	0.9		$	(67.6	)	$	52.3
Comprehensive income	$	54.1		$	68.4		$	1.0		$	(69.4	)	$	54.1

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions of dollars)

Six Months Ended June 30, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(12.3	)	$	82.5		$	2.9		$	—		$	73.1
Cash flows from investing activities:
Capital expenditures	—			(39.5		)	(0.2		)	—			(39.7		)
Purchase of available for sale securities	—			(128.0		)	—			—			(128.0		)
Proceeds from disposition of available for sale securities	—			184.2			—			—			184.2
Intercompany loans receivable	99.1			(0.1		)	2.2			(101.2		)	—
Net cash provided by investing activities	99.1			16.6			2.0			(101.2		)	16.5
Cash flows from financing activities:
Repayment of capital lease	—			(0.1		)	—			—			(0.1		)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(4.5		)	—			—			—			(4.5		)
Repurchase of common stock	(64.4		)	—			—			—			(64.4		)
Cash dividends and dividend equivalents paid	(17.9		)	—			—			—			(17.9		)
Intercompany loans payable	—			(101.2		)	—			101.2			—
Net cash used in financing activities	(86.8		)	(101.3		)	—			101.2			(86.9		)
Net (decrease) increase in cash, cash equivalents and restricted cash during the period	—			(2.2		)	4.9			—			2.7
Cash, cash equivalents and restricted cash at beginning of period	—			65.1			2.6			—			67.7
Cash, cash equivalents and restricted cash at end of period	$	—		$	62.9		$	7.5		$	—		$	70.4

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions of dollars)

Six Months Ended June 30, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries				Consolidating Adjustments				Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	190.7		$	76.2		$	5.3			$	(200.0	)		$	72.2
Cash flows from investing activities:
Capital expenditures	—			(40.8		)	(1.5		)		—				(42.3		)
Purchase of available for sale securities	—			(72.4		)	—				—				(72.4		)
Proceeds from disposition of available for sale securities	—			30.0			—				—				30.0
Intercompany loans receivable1	(219.7		)	106.2			(2.4		)		115.9				—
Net cash (used in) provided by in investing activities	(219.7		)	23.0			(3.9		)		115.9				(84.7		)
Cash flows from financing activities:
Repayment of principal and redemption premium of 8.25% Senior Notes	(206.0		)	—			—				—				(206.0		)
Issuance of 5.875% Senior Notes	375.0			—			—				—				375.0
Cash paid for debt issuance costs	(6.9		)	—			—				—				(6.9		)
Proceeds from stock option exercises	1.0			—			—				—				1.0
Repayment of capital lease	—			—			(0.1		)		—				(0.1		)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(2.8		)	—			—				—				(2.8		)
Repurchase of common stock	(8.5		)	—			—				—				(8.5		)
Cash dividends and dividend equivalents paid	(16.3		)	—			—				—				(16.3		)
Cash dividends paid to Parent	—			(200.0		)	—				200.0				—
Intercompany loans payable	(106.5		)	222.1			0.3				(115.9		)		—
Net cash provided by financing activities	29.0			22.1			0.2			—	84.1			—	135.4
Net increase in cash, cash equivalents and restricted cash during the period	—			121.3			1.6				—				122.9
Cash, cash equivalents and restricted cash at beginning of period	—			83.0			0.7				—				83.7
Cash, cash equivalents and restricted cash at end of period	$	—		$	204.3		$	2.3			$	—			$	206.6

________________

¹  As a result of the Parent's additional liquidity associated with the 5.875% Senior Notes (see Note 3), we classify all intercompany receivables and payables as Intercompany loans receivable and Intercompany loans payable, respectively, and therefore categorize changes in these balances within the investing and financing sections, respectively, of the Condensed Consolidating Statement of Cash Flows.