Condensed Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Guarantor and Non-Guarantor Financial Statement [Abstract]

Condensed Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions of dollars)

June 30, 2019

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	120.8	$	1.6	$	—		$	122.4
Short-term investments	—		24.4		—		—			24.4
Receivables:
Trade receivables, net	—		173.0		5.1		—			178.1
Intercompany loans receivable	74.0		0.5		4.5		(79.0		)	—
Other	—		24.2		0.9		—			25.1
Contract assets	—		44.8		2.1		—			46.9
Inventories	—		216.3		14.8		—			231.1
Prepaid expenses and other current assets	—		21.1		0.6		—			21.7
Total current assets	74.0		625.1		29.6		(79.0		)	649.7
Investments in and advances to subsidiaries	1,047.7		95.2		0.2		(1,143.1		)	—
Property, plant and equipment, net	—		579.8		34.0		—			613.8
Operating lease assets	—		26.8		—		—			26.8
Long-term intercompany loans receivable	—		—		10.4		(10.4		)	—
Deferred tax assets, net	—		12.4		—		3.1			15.5
Intangible assets, net	—		22.9		8.1		—			31.0
Goodwill	—		18.8		25.2		—			44.0
Other assets	—		41.3		—		—			41.3
Total	$	1,121.7	$	1,422.3	$	107.5	$	(1,229.4	)	$	1,422.1
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1.7	$	95.1	$	4.5	$	—		$	101.3
Intercompany loans payable	—		78.8		0.2		(79.0		)	—
Accrued salaries, wages and related expenses	—		28.7		1.7		—			30.4
Other accrued liabilities	2.8		46.7		0.8		(3.1		)	47.2
Total current liabilities	4.5		249.3		7.2		(82.1		)	178.9
Long-term portion of operating lease liabilities	—		26.0		—		—			26.0
Net liabilities of Salaried VEBA	—		32.6		—		—			32.6
Deferred tax liabilities	—		—		4.2		—			4.2
Long-term intercompany loans payable	—		10.4		—		(10.4		)	—
Long-term liabilities	—		59.7		3.5		—			63.2
Long-term debt	370.9		—		—		—			370.9
Total liabilities	375.4		378.0		14.9		(92.5		)	675.8
Total stockholders' equity	746.3		1,044.3		92.6		(1,136.9		)	746.3
Total	$	1,121.7	$	1,422.3	$	107.5	$	(1,229.4	)	$	1,422.1

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 STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended June 30, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	366.9		$	23.7		$	(15.3	)	$	375.3
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	—			296.0			22.5			(15.0		)	303.5
Depreciation and amortization	—			11.1			1.0			—			12.1
Selling, general, administrative, research and development	1.4			25.6			0.5			(0.3		)	27.2
Other operating charges, net	—			0.1			—			—			0.1
Total costs and expenses	1.4			332.8			24.0			(15.3		)	342.9
Operating (loss) income	(1.4		)	34.1			(0.3		)	—			32.4
Other (expense) income:
Interest expense	(5.4		)	(0.5		)	—			0.1			(5.8		)
Other (expense) income, net	—			(0.1		)	0.1			(0.1		)	(0.1		)
(Loss) income before income taxes	(6.8		)	33.5			(0.2		)	—			26.5
Income tax provision	—			(9.0		)	—			1.7			(7.3		)
Earnings (loss) in equity of subsidiaries	26.0			(0.2		)	—			(25.8		)	—
Net income (loss)	$	19.2		$	24.3		$	(0.2	)	$	(24.1	)	$	19.2
Comprehensive income (loss)	$	16.0		$	21.1		$	(0.2	)	$	(20.9	)	$	16.0

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Quarter Ended June 30, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	404.7		$	37.1		$	(26.4	)	$	415.4
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	—			335.6			32.9			(25.1		)	343.4
Depreciation and amortization	—			10.4			0.5			—			10.9
Selling, general, administrative, research and development	1.6			23.7			2.3			(1.2		)	26.4
Total costs and expenses	1.6			369.7			35.7			(26.3		)	380.7
Operating (loss) income	(1.6		)	35.0			1.4			(0.1		)	34.7
Other (expense) income:
Interest expense	(5.3		)	(0.6		)	—			0.2			(5.7		)
Other expense, net	—			(0.3		)	—			(0.2		)	(0.5		)
(Loss) income before income taxes	(6.9		)	34.1			1.4			(0.1		)	28.5
Income tax provision	—			(9.2		)	(0.3		)	1.7			(7.8		)
Earnings in equity of subsidiaries	27.6			1.1			—			(28.7		)	—
Net income	$	20.7		$	26.0		$	1.1		$	(27.1	)	$	20.7
Comprehensive income	$	27.1		$	32.4		$	1.1		$	(33.5	)	$	27.1

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Six Months Ended June 30, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	752.6		$	52.6		$	(34.7	)	$	770.5
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	—			605.0			47.5			(33.9		)	618.6
Depreciation and amortization	—			22.0			2.0			—			24.0
Selling, general, administrative, research and development	2.5			47.8			2.9			(0.8		)	52.4
Other operating charges, net	—			0.1			—			—			0.1
Total costs and expenses	2.5			674.9			52.4			(34.7		)	695.1
Operating (loss) income	(2.5		)	77.7			0.2			—			75.4
Other (expense) income:
Interest expense	(10.6		)	(1.1		)	—			0.2			(11.5		)
Other income, net	—			0.2			0.4			(0.2		)	0.4
(Loss) income before income taxes	(13.1		)	76.8			0.6			—			64.3
Income tax provision	—			(20.0		)	(0.3		)	3.2			(17.1		)
Earnings in equity of subsidiaries	60.3			0.3			—			(60.6		)	—
Net income	$	47.2		$	57.1		$	0.3		$	(57.4	)	$	47.2
Comprehensive income	$	53.7		$	63.6		$	0.3		$	(63.9	)	$	53.7

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(In millions of dollars)

Six Months Ended June 30, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	782.6		$	69.6		$	(48.8	)	$	803.4
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	—			645.0			62.0			(46.9		)	660.1
Depreciation and amortization	—			20.3			1.1			—			21.4
Selling, general, administrative, research and development	2.7			45.0			4.2			(1.9		)	50.0
Other operating charges, net	—			0.1			—			—			0.1
Total costs and expenses	2.7			710.4			67.3			(48.8		)	731.6
Operating (loss) income	(2.7		)	72.2			2.3			—			71.8
Other (expense) income:
Interest expense	(10.5		)	(1.1		)	—			0.3			(11.3		)
Other (expense) income, net	—			(0.2		)	0.1			(0.3		)	(0.4		)
(Loss) income before income taxes	(13.2		)	70.9			2.4			—			60.1
Income tax provision	—			(16.3		)	(0.6		)	3.2			(13.7		)
Earnings in equity of subsidiaries	59.6			1.8			—			(61.4		)	—
Net income	$	46.4		$	56.4		$	1.8		$	(58.2	)	$	46.4
Comprehensive income	$	44.5		$	54.5		$	1.8		$	(56.3	)	$	44.5

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions of dollars)

Six Months Ended June 30, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(14.8	)	$	85.0		$	0.3		$	—		$	70.5
Cash flows from investing activities:
Capital expenditures	—			(29.0		)	(0.9		)	—			(29.9		)
Purchase of available for sale securities	—			(33.0		)	—			—			(33.0		)
Purchase of equity securities	—			(0.7		)	—			—			(0.7		)
Proceeds from disposition of available for sale securities	—			45.7			—			—			45.7
Proceeds from disposal of property, plant and equipment	—			0.2			—			—			0.2
Intercompany loans receivable	69.7			(0.4		)	(0.8		)	(68.5		)	—
Net cash provided by (used in) investing activities	69.7			(17.2		)	(1.7		)	(68.5		)	(17.7		)
Cash flows from financing activities:
Repayment of finance lease	—			(0.6		)	—			—			(0.6		)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(6.2		)	—			—			—			(6.2		)
Repurchase of common stock	(28.6		)	—			—			—			(28.6		)
Cash dividends and dividend equivalents paid	(20.1		)	—			—			—			(20.1		)
Intercompany loans payable	—			(68.6		)	0.1			68.5			—
Net cash (used in) provided by financing activities	(54.9		)	(69.2		)	0.1			68.5			(55.5		)
Net decrease in cash, cash equivalents and restricted cash during the period	—			(1.4		)	(1.3		)	—			(2.7		)
Cash, cash equivalents and restricted cash at beginning of period	—			136.3			3.3			—			139.6
Cash, cash equivalents and restricted cash at end of period	$	—		$	134.9		$	2.0		$	—		$	136.9

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions of dollars)

Six Months Ended June 30, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	87.9		$	96.3		$	(0.2	)	$	(100.0	)	$	84.0
Cash flows from investing activities:
Capital expenditures	—			(35.2		)	(0.6		)	—			(35.8		)
Purchase of available for sale securities	—			(24.0		)	—			—			(24.0		)
Purchase of equity securities	—			(0.9		)	—			—			(0.9		)
Proceeds from disposition of available for sale securities	—			136.6			—			—			136.6
Intercompany loans receivable	(42.8		)	—			1.1			41.7			—
Net cash (used in) provided by investing activities	(42.8		)	76.5			0.5			41.7			75.9
Cash flows from financing activities:
Repayment of finance lease	—			(0.3		)	—			—			(0.3		)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(6.9		)	—			—			—			(6.9		)
Repurchase of common stock	(18.9		)	—			—			—			(18.9		)
Cash dividends paid to Parent	—			(100.0		)	—			100.0			—
Cash dividends and dividend equivalents paid	(19.3		)	—			—			—			(19.3		)
Intercompany loans payable	—			41.7			—			(41.7		)	—
Net cash used in financing activities	(45.1		)	(58.6		)	—			58.3			(45.4		)
Net increase in cash, cash equivalents and restricted cash during the period	—			114.2			0.3			—			114.5
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	$	—		$	175.5		$	3.3		$	—		$	178.8