| Guarantor and Non-Guarantor Financial Statements |
Condensed Guarantor and Non-Guarantor Financial Information During the quarter ended June 30, 2016, we issued $375.0 million aggregate principal amount of our 5.875% Senior Notes and redeemed in full the remaining principal balance of our 8.25% Senior Notes. The 5.875% Senior Notes were issued by Kaiser Aluminum Corporation ("Parent") pursuant to an indenture dated May 12, 2016 ("Indenture") with Wells Fargo Bank, National Association, as trustee ("Trustee"). The obligations of the Parent under the Indenture are guaranteed by Kaiser Aluminum Investments Company, Kaiser Aluminum Fabricated Products, LLC and Kaiser Aluminum Washington, LLC, ("Guarantor Subsidiaries"). All Guarantor Subsidiaries are 100% owned by Parent. The guarantees are full and unconditional and joint and several but have customary releases in the following situations: (i) the sale of the Guarantor Subsidiary or all of its assets; (ii) the declaration of a Guarantor Subsidiary as an unrestricted subsidiary under the Indenture; (iii) the termination or release of the Guarantor Subsidiary's guarantee of certain other indebtedness; or (iv) our exercise of legal defeasance or covenant defeasance or the discharge of our obligations under the Indenture. The following condensed consolidating financial information as of December 31, 2018 and December 31, 2017, and for the years ended December 31, 2018, December 31, 2017 and December 31, 2016 present: (i) the financial position, results of operation and cash flows for each of (a) Parent, (b) the Guarantor Subsidiaries on a combined basis and (c) the Non-Guarantor subsidiaries of Parent other than the Guarantor Subsidiaries ("Non-Guarantor Subsidiaries") on a combined basis; (ii) the "Consolidating Adjustments," which represent the adjustments necessary to eliminate the investments in our subsidiaries, other intercompany balances and other intercompany sales and cost of sales among Parent, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries; and (iii) the resulting totals, reflecting information for us on a consolidated basis, as reported. The condensed consolidating financial information should be read in conjunction with the consolidated financial statements herein. The Non-Guarantor Subsidiaries include Kaiser Aluminum Mill Products, Inc., Kaiser Aluminum Canada Limited, Trochus Insurance Company, Kaiser Aluminum France, S.A.S., Kaiser Aluminum Beijing Trading Company, Imperial Machine & Tool, Co. and Solid Innovations, LLC. Kaiser Aluminum Mill Products, Inc. was included in the "Guarantor Subsidiaries" under the indenture covering the 8.25% Senior Notes but is not a Guarantor Subsidiary under the Indenture. CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Consolidating Adjustments | | Consolidated | ASSETS | | | | | | | | | | | Current assets: | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | 122.6 |
| | $ | 3.0 |
| | $ | — |
| | $ | 125.6 |
| Short-term investments | | — |
| | 36.7 |
| | — |
| | — |
| | 36.7 |
| Receivables: | | | | | | | | | | | Trade receivables, net | | — |
| | 174.0 |
| | 5.8 |
| | — |
| | 179.8 |
| Intercompany receivables | | 143.7 |
| | 0.1 |
| | 4.3 |
| | (148.1 | ) | | — |
| Other | | — |
| | 23.3 |
| | 2.3 |
| | — |
| | 25.6 |
| Contract assets | | — |
| | 52.0 |
| | 2.9 |
| | — |
| | 54.9 |
| Inventories | | — |
| | 203.0 |
| | 12.1 |
| | — |
| | 215.1 |
| Prepaid expenses and other current assets | | 0.1 |
| | 18.4 |
| | 0.4 |
| | — |
| | 18.9 |
| Total current assets | | 143.8 |
| | 630.1 |
| | 30.8 |
| | (148.1 | ) | | 656.6 |
| Investments in and advances to subsidiaries | | 974.7 |
| | 94.9 |
| | 0.2 |
| | (1,069.8 | ) | | — |
| Property, plant and equipment, net | | — |
| | 577.4 |
| | 34.4 |
| | — |
| | 611.8 |
| Long-term intercompany receivables | | — |
| | — |
| | 9.8 |
| | (9.8 | ) | | — |
| Deferred tax assets, net | | — |
| | 32.9 |
| | — |
| | 3.0 |
| | 35.9 |
| Intangible assets, net | | — |
| | 23.6 |
| | 8.8 |
| | — |
| | 32.4 |
| Goodwill | | — |
| | 18.8 |
| | 25.2 |
| | — |
| | 44.0 |
| Other assets | | — |
| | 38.6 |
| | — |
| | — |
| | 38.6 |
| Total | | $ | 1,118.5 |
| | $ | 1,416.3 |
| | $ | 109.2 |
| | $ | (1,224.7 | ) | | $ | 1,419.3 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | Current liabilities: | | | | | | | | | | | Accounts payable | | $ | 4.9 |
| | $ | 109.6 |
| | $ | 6.9 |
| | $ | — |
| | $ | 121.4 |
| Intercompany payable | | — |
| | 148.0 |
| | 0.1 |
| | (148.1 | ) | | — |
| Accrued salaries, wages and related expenses | | — |
| | 38.3 |
| | 1.8 |
| | — |
| | 40.1 |
| Other accrued liabilities | | 2.8 |
| | 46.7 |
| | 0.8 |
| | (6.3 | ) | | 44.0 |
| Total current liabilities | | 7.7 |
| | 342.6 |
| | 9.6 |
| | (154.4 | ) | | 205.5 |
| Net liabilities of Salaried VEBA | | — |
| | 32.4 |
| | — |
| | — |
| | 32.4 |
| Deferred tax liabilities | | — |
| | — |
| | 4.2 |
| | — |
| | 4.2 |
| Long-term intercompany payable | | — |
| | 9.8 |
| | — |
| | (9.8 | ) | | — |
| Long-term liabilities | | — |
| | 63.3 |
| | 3.1 |
| | — |
| | 66.4 |
| Long-term debt | | 370.4 |
| | — |
| | — |
| | — |
| | 370.4 |
| Total liabilities | | 378.1 |
| | 448.1 |
| | 16.9 |
| | (164.2 | ) | | 678.9 |
| | | | | | | | | | | | Total stockholders' equity | | 740.4 |
| | 968.2 |
| | 92.3 |
| | (1,060.5 | ) | | 740.4 |
| Total | | $ | 1,118.5 |
| | $ | 1,416.3 |
| | $ | 109.2 |
| | $ | (1,224.7 | ) | | $ | 1,419.3 |
|
CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Consolidating Adjustments | | Consolidated | ASSETS | | | | | | | | | | | Current assets: | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | 48.4 |
| | $ | 2.7 |
| | $ | — |
| | $ | 51.1 |
| Short-term investments | | — |
| | 183.7 |
| | — |
| | — |
| | 183.7 |
| Receivables: | | | | | | | | | | | Trade receivables, net | | — |
| | 160.1 |
| | 4.9 |
| | — |
| | 165.0 |
| Intercompany receivables | | 22.8 |
| | 0.1 |
| | 0.7 |
| | (23.6 | ) | | — |
| Other | | — |
| | 14.7 |
| | 0.8 |
| | — |
| | 15.5 |
| Inventories | | — |
| | 198.7 |
| | 9.2 |
| | — |
| | 207.9 |
| Prepaid expenses and other current assets | | 0.1 |
| | 32.9 |
| | 0.4 |
| | — |
| | 33.4 |
| Total current assets | | 22.9 |
| | 638.6 |
| | 18.7 |
| | (23.6 | ) | | 656.6 |
| Investments in and advances to subsidiaries | | 1,097.7 |
| | 48.2 |
| | — |
| | (1,145.9 | ) | | — |
| Property, plant and equipment, net | | — |
| | 541.2 |
| | 30.2 |
| | — |
| | 571.4 |
| Long-term intercompany receivables | | — |
| | — |
| | 12.4 |
| | (12.4 | ) | | — |
| Deferred tax assets, net | | — |
| | 67.3 |
| | — |
| | 4.7 |
| | 72.0 |
| Intangible assets, net | | — |
| | 25.0 |
| | — |
| | — |
| | 25.0 |
| Goodwill | | — |
| | 18.8 |
| | — |
| | — |
| | 18.8 |
| Other assets | | — |
| | 41.4 |
| | — |
| | — |
| | 41.4 |
| Total | | $ | 1,120.6 |
| | $ | 1,380.5 |
| | $ | 61.3 |
| | $ | (1,177.2 | ) | | $ | 1,385.2 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | Current liabilities: | | | | | | | | | | | Accounts payable | | $ | 1.9 |
| | $ | 81.4 |
| | $ | 6.7 |
| | $ | — |
| | $ | 90.0 |
| Intercompany payable | | — |
| | 23.5 |
| | 0.1 |
| | (23.6 | ) | | — |
| Accrued salaries, wages and related expenses | | — |
| | 41.0 |
| | 1.6 |
| | — |
| | 42.6 |
| Other accrued liabilities | | 2.8 |
| | 46.2 |
| | 1.0 |
| | (9.5 | ) | | 40.5 |
| Total current liabilities | | 4.7 |
| | 192.1 |
| | 9.4 |
| | (33.1 | ) | | 173.1 |
| Net liabilities of Salaried VEBA | | — |
| | 31.9 |
| | — |
| | — |
| | 31.9 |
| Deferred tax liabilities | | — |
| | — |
| | 4.3 |
| | — |
| | 4.3 |
| Long-term intercompany payable | | — |
| | 12.4 |
| | — |
| | (12.4 | ) | | — |
| Long-term liabilities | | — |
| | 58.0 |
| | 2.0 |
| | — |
| | 60.0 |
| Long-term debt | | 369.6 |
| | — |
| | — |
| | — |
| | 369.6 |
| Total liabilities | | 374.3 |
| | 294.4 |
| | 15.7 |
| | (45.5 | ) | | 638.9 |
| | | | | | | | | | | | Total stockholders' equity | | 746.3 |
| | 1,086.1 |
| | 45.6 |
| | (1,131.7 | ) | | 746.3 |
| Total | | $ | 1,120.6 |
| | $ | 1,380.5 |
| | $ | 61.3 |
| | $ | (1,177.2 | ) | | $ | 1,385.2 |
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | | $ | — |
| | $ | 1,547.0 |
| | $ | 138.1 |
| | $ | (99.2 | ) | | $ | 1,585.9 |
| Costs and expenses: | | | | | | | | | | | Cost of products sold, excluding depreciation and amortization and other items | | — |
| | 1,271.2 |
| | 126.0 |
| | (96.5 | ) | | 1,300.7 |
| Depreciation and amortization | | — |
| | 41.3 |
| | 2.6 |
| | — |
| | 43.9 |
| Selling, general, administrative, research and development | | 4.8 |
| | 88.5 |
| | 5.7 |
| | (2.7 | ) | | 96.3 |
| Other operating charges, net | | — |
| | 1.3 |
| | 0.1 |
| | — |
| | 1.4 |
| Total costs and expenses | | 4.8 |
| | 1,402.3 |
| | 134.4 |
| | (99.2 | ) | | 1,442.3 |
| Operating (loss) income | | (4.8 | ) | | 144.7 |
| | 3.7 |
| | — |
| | 143.6 |
| Other (expense) income: | | | | | | | | | | | Interest expense | | (21.1 | ) | | (2.2 | ) | | — |
| | 0.6 |
| | (22.7 | ) | Other (expense) income, net | | — |
| | (0.4 | ) | | 0.1 |
| | (0.6 | ) | | (0.9 | ) | (Loss) income before income taxes | | (25.9 | ) | | 142.1 |
| | 3.8 |
| | — |
| | 120.0 |
| Income tax provision | | — |
| | (32.9 | ) | | (1.7 | ) | | 6.3 |
| | (28.3 | ) | Earnings in equity of subsidiaries | | 117.6 |
| | 2.1 |
| | — |
| | (119.7 | ) | | — |
| Net income | | $ | 91.7 |
| | $ | 111.3 |
| | $ | 2.1 |
| | $ | (113.4 | ) | | $ | 91.7 |
| | | | | | | | | | | | Comprehensive income | | $ | 80.0 |
| | $ | 99.6 |
| | $ | 2.1 |
| | $ | (101.7 | ) | | $ | 80.0 |
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | | $ | — |
| | $ | 1,365.3 |
| | $ | 115.7 |
| | $ | (83.5 | ) | | $ | 1,397.5 |
| Costs and expenses: | | | | | | | | | | | Cost of products sold, excluding depreciation and amortization and other items1 | | — |
| | 1,066.1 |
| | 101.1 |
| | (81.3 | ) | | 1,085.9 |
| Depreciation and amortization | | — |
| | 37.5 |
| | 2.2 |
| | — |
| | 39.7 |
| Selling, general, administrative, research and development2 | | 4.5 |
| | 88.3 |
| | 6.9 |
| | (2.2 | ) | | 97.5 |
| Goodwill impairment | | — |
| | 18.4 |
| | — |
| | — |
| | 18.4 |
| Other operating charges, net | | — |
| | 0.8 |
| | — |
| | — |
| | 0.8 |
| Total costs and expenses | | 4.5 |
| | 1,211.1 |
| | 110.2 |
| | (83.5 | ) | | 1,242.3 |
| Operating (loss) income | | (4.5 | ) | | 154.2 |
| | 5.5 |
| | — |
| | 155.2 |
| Other (expense) income: | | | | | | | | | | | Interest expense | | (20.7 | ) | | (1.7 | ) | | — |
| | 0.2 |
| | (22.2 | ) | Other (expense) income, net | | — |
| | (0.5 | ) | | 0.7 |
| | (0.2 | ) | | — |
| (Loss) income before income taxes | | (25.2 | ) | | 152.0 |
| | 6.2 |
| | — |
| | 133.0 |
| Income tax provision | | — |
| | (95.2 | ) | | (1.9 | ) | | 9.5 |
| | (87.6 | ) | Earnings in equity of subsidiaries | | 70.6 |
| | 4.3 |
| | — |
| | (74.9 | ) | | — |
| Net income | | $ | 45.4 |
| | $ | 61.1 |
| | $ | 4.3 |
| | $ | (65.4 | ) | | $ | 45.4 |
| | | | | | | | | | | | Comprehensive income | | $ | 45.4 |
| | $ | 61.1 |
| | $ | 4.3 |
| | $ | (65.4 | ) | | $ | 45.4 |
|
_____________________ | | 1. | See Note 7 for discussion of our adoption of ASU 2017-12 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and now included within Cost of products sold, excluding depreciation and amortization and other items. |
| | 2. | See Note 1 for discussion of our adoption of ASU 2017-07 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other expense. |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Year Ended December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Consolidating Adjustments | | Consolidated | Net sales | | $ | — |
| | $ | 1,301.6 |
| | $ | 103.4 |
| | $ | (74.4 | ) | | $ | 1,330.6 |
| Costs and expenses: | | | | | | | | | | | Cost of products sold: | | | | | | | | | | | Cost of products sold, excluding depreciation and amortization and other items1 | | — |
| | 981.9 |
| | 90.0 |
| | (71.1 | ) | | 1,000.8 |
| Lower of cost or market inventory write-down | | — |
| | 4.9 |
| | — |
| | — |
| | 4.9 |
| Depreciation and amortization | | — |
| | 34.0 |
| | 2.0 |
| | — |
| | 36.0 |
| Selling, general, administrative, research and development2 | | 4.2 |
| | 95.0 |
| | 8.4 |
| | (2.6 | ) | | 105.0 |
| Other operating charges, net | | — |
| | 2.8 |
| | — |
| | — |
| | 2.8 |
| Total costs and expenses | | 4.2 |
| | 1,118.6 |
| | 100.4 |
| | (73.7 | ) | | 1,149.5 |
| Operating (loss) income | | (4.2 | ) | | 183.0 |
| | 3.0 |
| | (0.7 | ) | | 181.1 |
| Other (expense) income: | | | | | | | | | | | Interest (expense) income | | (21.6 | ) | | 1.2 |
| | — |
| | 0.1 |
| | (20.3 | ) | Other expense, net | | (11.1 | ) | | (2.4 | ) | | — |
| | (0.1 | ) | | (13.6 | ) | (Loss) income before income taxes | | (36.9 | ) | | 181.8 |
| | 3.0 |
| | (0.7 | ) | | 147.2 |
| Income tax provision | | — |
| | (69.0 | ) | | (0.6 | ) | | 14.1 |
| | (55.5 | ) | Earnings in equity of subsidiaries | | 128.6 |
| | 1.7 |
| | — |
| | (130.3 | ) | | — |
| Net income | | $ | 91.7 |
| | $ | 114.5 |
| | $ | 2.4 |
| | $ | (116.9 | ) | | $ | 91.7 |
| | | | | | | | | | | | Comprehensive income | | $ | 86.7 |
| | $ | 109.8 |
| | $ | 2.1 |
| | $ | (111.9 | ) | | $ | 86.7 |
|
_____________________ | | 1. | See Note 7 for discussion of our adoption of ASU 2017-12 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and now included within Cost of products sold, excluding depreciation and amortization and other items. |
| | 2. | See Note 1 for discussion of our adoption of ASU 2017-07 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other expense. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Consolidating Adjustments | | Consolidated | Cash flows from operating activities: | | | | | | | | | | | Net cash provided by operating activities | | $ | 226.2 |
| | $ | 166.6 |
| | $ | 7.4 |
| | $ | (250.0 | ) | | $ | 150.2 |
| Cash flows from investing activities: | | | | | | | | | | | Capital expenditures | | — |
| | (68.0 | ) | | (6.1 | ) | | — |
| | (74.1 | ) | Purchase of available for sale securities | | — |
| | (135.2 | ) | | — |
| | — |
| | (135.2 | ) | Purchase of equity securities | | — |
| | (0.9 | ) | | — |
| | — |
| | (0.9 | ) | Proceeds from disposition of available for sale securities | | — |
| | 283.9 |
| | — |
| | — |
| | 283.9 |
| Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received | | — |
| | (43.2 | ) | | — |
| | — |
| | (43.2 | ) | Proceeds from disposal of property, plant and equipment | | — |
| | 0.6 |
| | — |
| | — |
| | 0.6 |
| Intercompany loans receivable | | (120.9 | ) | | — |
| | (1.0 | ) | | 121.9 |
| | — |
| Net cash (used in) provided by investing activities | | (120.9 | ) | | 37.2 |
| | (7.1 | ) | | 121.9 |
| | 31.1 |
| Cash flows from financing activities: | | | | | | | | | | | Repayment of capital lease | | — |
| | (0.7 | ) | | — |
| | — |
| | (0.7 | ) | Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | | (6.9 | ) | | — |
| | — |
| | — |
| | (6.9 | ) | Repurchase of common stock | | (60.7 | ) | | — |
| | — |
| | — |
| | (60.7 | ) | Cash dividends and dividend equivalents paid | | (37.7 | ) | | — |
| | — |
| | — |
| | (37.7 | ) | Cash dividends paid to Parent | | — |
| | (250.0 | ) | | — |
| | 250.0 |
| | — |
| Intercompany loans payable | | — |
| | 121.9 |
| | — |
| | (121.9 | ) | | — |
| Net cash used in financing activities | | (105.3 | ) | | (128.8 | ) | | — |
| | 128.1 |
| | (106.0 | ) | Net increase in cash and cash equivalents during the period | | — |
| | 75.0 |
| | 0.3 |
| | — |
| | 75.3 |
| Cash, cash equivalents and restricted cash at beginning of period | | — |
| | 61.3 |
| | 3.0 |
| | — |
| | 64.3 |
| Cash, cash equivalents and restricted cash at end of period | | $ | — |
| | $ | 136.3 |
| | $ | 3.3 |
| | $ | — |
| | $ | 139.6 |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Consolidating Adjustments | | Consolidated | Cash flows from operating activities: | | | | | | | | | | | Net cash (used in) provided by operating activities | | $ | (24.2 | ) | | $ | 156.9 |
| | $ | 8.8 |
| | $ | — |
| | $ | 141.5 |
| Cash flows from investing activities: | | | | | | | | | | | Capital expenditures | | — |
| | (74.7 | ) | | (0.8 | ) | | — |
| | (75.5 | ) | Purchase of available for sale securities | | — |
| | (247.5 | ) | | — |
| | — |
| | (247.5 | ) | Proceeds from disposition of available for sale securities | | — |
| | 296.9 |
| | — |
| | — |
| | 296.9 |
| Proceeds from disposal of property, plant and equipment | | — |
| | 0.6 |
| | — |
| | — |
| | 0.6 |
| Intercompany loans receivable | | 143.2 |
| | — |
| | (7.6 | ) | | (135.6 | ) | | — |
| Net cash provided by (used in) investing activities | | 143.2 |
| | (24.7 | ) | | (8.4 | ) | | (135.6 | ) | | (25.5 | ) | Cash flows from financing activities: | | | | | | | | | | | Repayment of capital lease | | — |
| | (0.4 | ) | | — |
| | — |
| | (0.4 | ) | Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | | (4.5 | ) | | — |
| | — |
| | — |
| | (4.5 | ) | Repurchase of common stock | | (79.5 | ) | | — |
| | — |
| | — |
| | (79.5 | ) | Cash dividends and dividend equivalents paid | | (35.0 | ) | | — |
| | — |
| | — |
| | (35.0 | ) | Intercompany loans payable | | — |
| | (135.6 | ) | | — |
| | 135.6 |
| | — |
| Net cash used in financing activities | | (119.0 | ) | | (136.0 | ) | | — |
| | 135.6 |
| | (119.4 | ) | Net (decrease) increase in cash and cash equivalents during the period | | — |
| | (3.8 | ) | | 0.4 |
| | — |
| | (3.4 | ) | 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 | | $ | — |
| | $ | 61.3 |
| | $ | 3.0 |
| | $ | — |
| | $ | 64.3 |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Consolidating Adjustments | | Consolidated | Cash flows from operating activities: | | | | | | | | | | | Net cash provided by operating activities | | $ | 177.7 |
| | $ | 178.7 |
| | $ | 9.2 |
| | $ | (200.0 | ) | | $ | 165.6 |
| Cash flows from investing activities: | | | | | | | | | | | Capital expenditures | | — |
| | (74.0 | ) | | (2.1 | ) | | — |
| | (76.1 | ) | Purchase of available for sale securities | | — |
| | (255.3 | ) | | — |
| | — |
| | (255.3 | ) | Proceeds from disposition of available for sale securities | | — |
| | 55.0 |
| | — |
| | — |
| | 55.0 |
| Intercompany loans receivable1 | | (166.0 | ) | | 110.4 |
| | (1.3 | ) | | 56.9 |
| | — |
| Net cash used in investing activities | | (166.0 | ) | | (163.9 | ) | | (3.4 | ) | | 56.9 |
| | (276.4 | ) | 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 | | (6.8 | ) | | — |
| | — |
| | — |
| | (6.8 | ) | Proceeds from stock option exercises | | 1.2 |
| | — |
| | — |
| | — |
| | 1.2 |
| Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | | (2.9 | ) | | — |
| | — |
| | — |
| | (2.9 | ) | Repurchase of common stock | | (33.3 | ) | | — |
| | — |
| | — |
| | (33.3 | ) | Cash dividends and dividend equivalents paid | | (32.4 | ) | | — |
| | — |
| | — |
| | (32.4 | ) | Cash dividends paid to Parent | | — |
| | (200.0 | ) | | — |
| | 200.0 |
| | — |
| Intercompany loans payable1 | | (106.5 | ) | | 167.3 |
| | (3.9 | ) | | (56.9 | ) | | — |
| Net cash (used in) provided by financing activities | | (11.7 | ) | | (32.7 | ) | | (3.9 | ) | | 143.1 |
| | 94.8 |
| Net (decrease) increase in cash and cash equivalents during the period | | — |
| | (17.9 | ) | | 1.9 |
| | — |
| | (16.0 | ) | 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 | | $ | — |
| | $ | 65.1 |
| | $ | 2.6 |
| | $ | — |
| | $ | 67.7 |
|
________________ 1 As a result of Parent's additional liquidity associated with the 5.875% Senior Notes (see Note 8), 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.
|