17. Condensed Consolidating Financial Data

The Company’s Senior Notes and Senior Subordinated Notes (see Note 7) are fully guaranteed, jointly and severally, by certain of the Company’s domestic subsidiaries (“Guarantor Subsidiaries”). The guarantees of the Guarantor Subsidiaries are subject to release only in certain limited circumstances. The Company’s non-United States subsidiaries and those domestic subsidiaries who are not guarantors (“Non-Guarantor Subsidiaries”) are not guaranteeing these notes. Presented below is the condensed consolidating financial data of the Company (“Parent”), the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis, using the equity method of accounting for subsidiaries as of June 30, 2014 and December 31, 2013 and for the three and six months ended June 30, 2014 and 2013.

Condensed Consolidating Results of Operations


	Three months ended June 30, 2014
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,367.1		$	814.5		$	(206.5	)	$	1,975.1
Cost of sales		—			991.0			588.6			(206.5	)		1,373.1

Gross profit		—			376.1			225.9			—			602.0
Selling, general and administrative expenses		11.0			256.7			141.9			—			409.6
Restructuring costs, net		—			—			2.3			—			2.3

Operating earnings (loss)		(11.0	)		119.4			81.7			—			190.1
Interest expense, net		34.4			16.3			2.2			—			52.9
Loss on early extinguishment of debt		54.4			—			—			—			54.4

Income (loss) before taxes and equity earnings of subsidiaries		(99.8	)		103.1			79.5			—			82.8
Income tax provision (benefit)		(37.0	)		38.9			28.8			—			30.7
Equity earnings of subsidiaries		114.9			43.0			—			(157.9	)		—

Net income (loss)		52.1			107.2			50.7			(157.9	)		52.1
Other comprehensive income (loss), net of tax		11.5			12.7			13.2			(25.9	)		11.5

Comprehensive income (loss)	$	63.6		$	119.9		$	63.9		$	(183.8	)	$	63.6


	Three months ended June 30, 2013
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,187.9		$	760.2		$	(189.3	)	$	1,758.8
Cost of sales		—			897.6			537.0			(189.3	)		1,245.3

Gross profit		—			290.3			223.2			—			513.5
Selling, general and administrative expenses		20.7			150.8			161.4			—			332.9
Restructuring costs, net		—			0.7			0.7			—			1.4

Operating earnings		(20.7	)		138.8			61.1			—			179.2
Interest expense, net		42.9			0.2			3.1			—			46.2
Loss on early extinguishment of debt		8.8			—			—			—			8.8

Income (loss) before taxes and equity earnings of subsidiaries		(72.4	)		138.6			58.0			—			124.2
Income tax provision (benefit)		(27.2	)		55.0			20.0			—			47.8
Equity earnings of subsidiaries		121.6			28.1			—			(149.7	)		—

Net income (loss)		76.4			111.7			38.0			(149.7	)		76.4
Other comprehensive income (loss), net of tax		(22.8	)		(23.1	)		(27.1	)		50.2			(22.8	)


Comprehensive income (loss)	$	53.6		$	88.6		$	10.9		$	(99.5	)	$	53.6


	Six months ended June 30, 2014
(in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	2,550.2	$	1,554.6	$	(397.9	)	$	3,706.9
Cost of sales		—			1,857.4		1,131.0		(397.9	)		2,590.5

Gross profit		—			692.8		423.6		—			1,116.4
Selling, general and administrative expenses		64.8			505.6		290.1		—			860.5
Restructuring costs, net		—			—		2.6		—			2.6

Operating earnings (loss)		(64.8	)		187.2		130.9		—			253.3
Interest expense, net		70.6			32.5		3.8		—			106.9
Loss on early extinguishment of debt		54.4			—		—		—			54.4

Income (loss) before taxes and equity earnings of subsidiaries		(189.8	)		154.7		127.1		—			92.0
Income tax provision (benefit)		(71.3	)		58.5		49.0		—			36.2
Equity earnings of subsidiaries		174.3			61.8		—		(236.1	)		—

Net income (loss)		55.8			158.0		78.1		(236.1	)		55.8
Other comprehensive income (loss), net of tax		3.2			6.7		6.1		(12.8	)		3.2

Comprehensive income (loss)	$	59.0		$	164.7	$	84.2	$	(248.9	)	$	59.0



	Six months ended June 30, 2013
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	2,223.4		$	1,456.5		$	(340.4	)	$	3,339.5
Cost of sales		—			1,682.9			1,040.0			(340.4	)		2,382.5

Gross profit		—			540.5			416.5			—			957.0
Selling, general and administrative expenses		78.4			314.3			326.8			—			719.5
Restructuring costs, net		—			0.7			0.7			—			1.4

Operating earnings		(78.4	)		225.5			89.0			—			236.1
Interest expense, net		89.6			0.5			5.7			—			95.8
Loss on early extinguishment of debt		25.9			—			—			—			25.9

Income (loss) before taxes and equity earnings of subsidiaries		(193.9	)		225.0			83.3			—			114.4
Income tax provision (benefit)		(72.6	)		76.3			38.7			—			42.4
Equity earnings of subsidiaries		193.3			31.9			—			(225.2	)		—

Net income (loss)		72.0			180.6			44.6			(225.2	)		72.0
Other comprehensive income (loss), net of tax		(35.9	)		(36.6	)		(45.4	)		82.0			(35.9	)


Comprehensive income (loss)	$	36.1		$	144.0		$	(0.8	)	$	(143.2	)	$	36.1

Condensed Consolidating Balance Sheets


	As of June 30, 2014
(in millions)	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	279.1	$	8.1	$	378.1	$	—		$	665.3
Accounts receivable		—		4.8		1,260.4		—			1,265.2
Inventories		—		983.7		712.1		—			1,695.8
Other current assets		19.3		197.0		164.9		—			381.2

Total current assets		298.4		1,193.6		2,515.5		—			4,007.5

Property, plant and equipment, net		46.4		414.3		388.2		—			848.9
Goodwill		—		2,378.5		312.3		—			2,690.8
Intangibles, net		—		2,182.5		229.9		—			2,412.4
Intercompany receivables		2,669.8		2,480.8		2,009.8		(7,160.4	)		—
Investment in subsidiaries		7,009.2		2,038.1		—		(9,047.3	)		—
Other non-current assets		65.1		17.5		86.1		—			168.7

Total assets	$	10,088.9	$	10,705.3	$	5,541.8	$	16,207.7		$	10,128.3

Liabilities and stockholders’ equity:
Short-term debt and current portion of long-term debt	$	203.7	$	1.1	$	562.4	$	—		$	767.2
Accounts payable		3.1		455.0		266.3		—			724.4
Other current liabilities		21.4		277.0		282.7		—			581.1

Total current liabilities		228.2		733.1		1,111.4		—			2,072.7

Long-term debt		3,946.6		4.0		12.9		—			3,963.5
Intercompany payables		3,160.6		1,734.0		2,265.8		(7,160.4	)		—
Deferred taxes on income		98.5		984.2		82.0		—			1,164.7
Other non-current liabilities		105.7		150.5		121.9		—			378.1
Total stockholders’ equity		2,549.3		7,099.5		1,947.8		(9,047.3	)		2,549.3

Total liabilities and stockholders’ equity	$	10,088.9	$	10,705.3	$	5,541.8	$	(16,207.7	)	$	10,128.3


	As of December 31, 2013
(in millions)	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	630.8	$	13.5	$	484.2	$	—		$	1,128.5
Accounts receivable		—		1.4		1,194.7		—			1,196.1
Inventories		—		839.7		572.2		—			1,411.9
Other current assets		23.0		174.3		149.7		—			347.0

Total current assets		653.8		1,028.9		2,400.8		—			4,083.5

Property, plant and equipment, net		46.7		404.1		401.8		—			852.6
Goodwill		—		2,365.5		254.8		—			2,620.3
Intangibles, net		—		2,190.8		202.2		—			2,393.0
Intercompany receivables		3,850.2		4,211.0		3,838.6		(11,899.8	)		—
Investment in subsidiaries		6,812.4		2,031.8		—		(8,844.2	)		—
Other non-current assets		68.7		18.1		59.9		—			146.7

Total assets	$	11,431.8	$	12,250.2	$	7,158.1	$	(20,744.0	)	$	10,096.1

Liabilities and stockholders’ equity:
Short-term debt and current portion of long-term debt	$	144.2	$	1.4	$	509.5	$	—		$	655.1
Accounts payable		11.4		390.0		262.8		—			664.2
Other current liabilities		121.6		299.0		299.5		—			720.1

Total current liabilities		277.2		690.4		1,071.8		—			2,039.4

Long-term debt		4,065.9		4.3		17.1		—			4,087.3
Intercompany payables		4,415.0		3,494.9		3,989.9		(11,899.8	)		—
Deferred taxes on income		19.0		974.4		71.9		—			1,065.3
Other non-current liabilities		105.0		156.9		92.5		—			354.4
Total stockholders’ equity		2,549.7		6,929.3		1,914.9		(8,844.2	)		2,549.7

Total liabilities and stockholders’ equity	$	11,431.8	$	12,250.2	$	7,158.1	$	(20,744.0	)	$	10,096.1

Condensed Consolidating Statements of Cash Flows


	Six months ended June 30, 2014
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities, net	$	(196.0	)	$	71.8		$	(45.1	)	$	(5.1	)	$	(174.4	)
Financing activities:
Net change in short-term debt		—			—			34.0			—			34.0
(Payments on) proceeds from intercompany transactions		(41.8	)		(13.4	)		50.1			5.1			—
Proceeds from issuance of long-term debt		690.0			0.2			1.4			—			691.6
Payments on long-term debt		(549.9	)		(0.7	)		(0.4	)		—			(551.0	)
Issuance (repurchase) of common stock, net		(269.8	)		—			—			—			(269.8	)
Excess tax benefits from stock-based compensation		34.9			—			—			—			34.9
Other		(16.6	)		(7.6	)		(0.6	)		—			(24.8	)


Net cash provided by (used in) financing activities		(153.2	)		(21.5	)		84.5			5.1			(85.1	)

Investing activities:
Additions to property, plant and equipment		(2.5	)		(54.5	)		(42.3	)		—			(99.3	)
Acquisition of businesses, net of cash acquired		—			—			(108.4	)		—			(108.4	)
Other		—			(1.2	)		6.0			—			4.8


Net cash used in investing activities		(2.5	)		(55.7	)		(144.7	)		—			(202.9	)

Effect of exchange rate changes on cash		—			—			(0.8	)		—			(0.8	)

Net decrease in cash and cash equivalents		(351.7	)		(5.4	)		(106.1	)		—			(463.2	)
Cash and cash equivalents at beginning of year		630.8			13.5			484.2			—			1,128.5


Cash and cash equivalents at end of year	$	279.1		$	8.1		$	378.1		$	—		$	665.3


	Six months ended June 30, 2013
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities, net	$	(73.1	)	$	66.2		$	(33.8	)	$	(0.7	)	$	(41.4	)
Financing activities:
Net change in short-term debt		—			—			0.5			—			0.5
(Payments on) proceeds from intercompany transactions		19.6			(20.6	)		13.2			(12.2	)		—
Proceeds from issuance of long-term debt		515.2			—			5.7			—			520.9
Payments on long-term debt		(347.1	)		(0.2	)		(0.6	)		—			(347.9	)
Issuance (repurchase) of common stock, net		(263.4	)		—			—			—			(263.4	)
Excess tax benefits from stock-based compensation		3.4			—			—			—			3.4
Other		(11.6	)		(4.4	)		—			—			(16.0	)


Net cash provided by (used in) financing activities		(83.9	)		(25.2	)		18.8			(12.2	)		(102.5	)

Investing activities:
Additions to property, plant and equipment		(3.6	)		(30.9	)		(39.0	)		—			(73.5	)
Intercompany investing activities, net		—			(12.9	)		—			12.9			—
Other		0.4			1.1			(1.7	)		—			(0.2	)


Net cash used in investing activities		(3.2	)		(42.7	)		(40.7	)		12.9			(73.7	)

Effect of exchange rate changes on cash		—			—			(28.2	)		—			(28.2	)

Net decrease in cash and cash equivalents		(160.2	)		(1.7	)		(83.9	)		—			(245.8	)
Cash and cash equivalents at beginning of year		560.2			5.0			468.9			—			1,034.1


Cash and cash equivalents at end of year	$	400.0		$	3.3		$	385.0		$	—		$	788.3

The amounts reflected as proceeds (payments) from (to) intercompany transactions represent cash flows originating from transactions conducted between Guarantor Subsidiaries, Non-Guarantor Subsidiaries and Parent in the normal course of business operations.