17. Condensed Consolidating Financial Data

The Company provides condensed consolidating financial data for its subsidiaries that are guarantors of its registered public debt. 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 (the “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 (the “Non-Guarantor Subsidiaries”) are not guaranteeing these notes. Presented below is the condensed consolidating financial data of the Company (the “Parent”), the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis, using the equity method of accounting for subsidiaries as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013.

Condensed Consolidating Results of Operations


	Three months ended September 30, 2014
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,487.7		$	873.8		$	(219.3	)	$	2,142.2
Cost of sales		—			1,057.5			630.7			(219.3	)		1,468.9

Gross profit		—			430.2			243.1			—			673.3
Selling, general and administrative expenses		28.6			268.6			145.5			—			442.7
Restructuring costs, net		—			—			0.5			—			0.5

Operating earnings (loss)		(28.6	)		161.6			97.1			—			230.1
Interest expense, net		33.7			16.6			2.4			—			52.7

Income (loss) before taxes and equity earnings of subsidiaries		(62.3	)		145.0			94.7			—			177.4
Income tax provision (benefit)		(23.5	)		54.9			37.4			—			68.8
Equity earnings of subsidiaries		147.4			50.9			—			(198.3	)		—

Net income (loss)		108.6			141.0			57.3			(198.3	)		108.6
Other comprehensive income (loss), net of tax		(53.5	)		(92.7	)		(112.3	)		205.0			(53.5	)

Comprehensive income (loss)	$	55.1		$	48.3		$	(55.0	)	$	6.7		$	55.1


	Three months ended September 30, 2013
(in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	1,225.6	$	815.4	$	(240.2	)	$	1,800.8
Cost of sales		—			928.9		588.9		(240.2	)		1,277.6

Gross profit		—			296.7		226.5		—			523.2
Selling, general and administrative expenses		31.6			164.9		129.4		—			325.9
Restructuring costs, net		—			1.6		1.4		—			3.0

Operating earnings (loss)		(31.6	)		130.2		95.7		—			194.3
Interest expense, net		45.3			0.3		1.9		—			47.5

Income (loss) before taxes and equity earnings of subsidiaries		(76.9	)		129.9		93.8		—			146.8
Income tax provision (benefit)		(26.7	)		49.0		29.6		—			51.9
Equity earnings of subsidiaries		145.1			55.8		—		(200.9	)		—

Net income (loss)		94.9			136.7		64.2		(200.9	)		94.9
Other comprehensive income (loss), net of tax		19.8			18.9		25.6		(44.5	)		19.8

Comprehensive income (loss)	$	114.7		$	155.6	$	89.8	$	(245.4	)	$	114.7


	Nine months ended September 30, 2014
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	4,037.9		$	2,428.4		$	(617.2	)	$	5,849.1
Cost of sales		—			2,914.9			1,761.7			(617.2	)		4,059.4

Gross profit		—			1,123.0			666.7			—			1,789.7
Selling, general and administrative expenses		93.4			774.2			435.6			—			1,303.2
Restructuring costs, net		—			—			3.1			—			3.1

Operating earnings (loss)		(93.4	)		348.8			228.0			—			483.4
Interest expense, net		104.3			49.1			6.2			—			159.6
Loss on early extinguishment of debt		54.4			—			—			—			54.4

Income (loss) before taxes and equity earnings of subsidiaries		(252.1	)		299.7			221.8			—			269.4
Income tax provision (benefit)		(94.8	)		113.4			86.4			—			105.0
Equity earnings of subsidiaries		321.7			112.7			—			(434.4	)		—

Net income (loss)		164.4			299.0			135.4			(434.4	)		164.4
Other comprehensive income (loss), net of tax		(50.3	)		(86.0	)		(106.2	)		192.2			(50.3	)

Comprehensive income (loss)	$	114.1		$	213.0		$	29.2		$	(242.2	)	$	114.1


	Nine months ended September 30, 2013
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	3,449.0		$	2,271.9		$	(580.6	)	$	5,140.3
Cost of sales		—			2,611.8			1,628.9			(580.6	)		3,660.1

Gross profit		—			837.2			643.0			—			1,480.2
Selling, general and administrative expenses		110.0			479.2			456.2			—			1,045.4
Restructuring costs, net		—			2.3			2.1			—			4.4

Operating earnings (loss)		(110.0	)		355.7			184.7			—			430.4
Interest expense, net		134.9			0.8			7.6			—			143.3
Loss on early extinguishment of debt		25.9			—			—			—			25.9

Income (loss) before taxes and equity earnings of subsidiaries		(270.8	)		354.9			177.1			—			261.2
Income tax provision (benefit)		(99.3	)		125.3			68.3			—			94.3
Equity earnings of subsidiaries		338.4			87.7			—			(426.1	)		—

Net income (loss)		166.9			317.3			108.8			(426.1	)		166.9
Other comprehensive income (loss), net of tax		(16.1	)		(17.7	)		(19.8	)		37.5			(16.1	)

Comprehensive income (loss)	$	150.8		$	299.6		$	89.0		$	(388.6	)	$	150.8

Condensed Consolidating Balance Sheets


	As of September 30, 2014
(in millions)	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	297.2	$	24.4	$	384.7	$	—		$	706.3
Accounts receivable		—		4.2		1,374.2		—			1,378.4
Inventories		—		1,069.7		717.8		—			1,787.5
Other current assets		35.4		201.7		159.6		—			396.7

Total current assets		332.6		1,300.0		2,636.3		—			4,268.9

Property, plant and equipment, net		45.7		436.8		364.0		—			846.5
Goodwill		—		2,581.6		322.4		—			2,904.0
Intangibles, net		—		2,369.6		266.2		—			2,635.8
Intercompany receivables		3,637.1		3,567.0		3,079.6		(10,283.7	)		—
Investment in subsidiaries		7,075.2		2,117.4		—		(9,192.6	)		—
Other non-current assets		67.1		17.2		83.5		—			167.8

Total assets	$	11,157.7	$	12,389.6	$	6,752.0	$	(19,476.3	)	$	10,823.0

Liabilities and stockholders’ equity:
Short-term debt and current portion of long-term debt	$	254.8	$	1.0	$	576.7	$	—		$	832.5
Accounts payable		4.9		496.8		272.7		—			774.4
Other current liabilities		91.1		262.3		323.3		—			676.7

Total current liabilities		350.8		760.1		1,172.7		—			2,283.6

Long-term debt		4,238.7		5.3		19.7		—			4,263.7
Intercompany payables		3,762.1		3,175.4		3,346.2		(10,283.7	)		—
Deferred taxes on income		89.2		1,071.7		76.4		—			1,237.3
Other non-current liabilities		109.8		203.6		117.9		—			431.3
Total stockholders’ equity		2,607.1		7,173.5		2,019.1		(9,192.6	)		2,607.1

Total liabilities and stockholders’ equity	$	11,157.7	$	12,389.6	$	6,752.0	$	(19,476.3	)	$	10,823.0


	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


	Nine months ended September 30, 2014
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities, net	$	(173.5	)	$	204.8		$	(76.1	)	$	(5.1	)	$	(49.9	)
Financing activities:
Net change in short-term debt		—			—			52.7			—			52.7
(Payments on) proceeds from intercompany transactions		(409.0	)		249.2			154.7			5.1			—
Proceeds from issuance of long-term debt		1,092.5			1.6			10.7			—			1,104.8
Payments on long-term debt		(588.0	)		(1.0	)		(0.6	)		—			(589.6	)
Issuance (repurchase) of common stock, net		(269.5	)		—			—			—			(269.5	)
Excess tax benefits from stock-based compensation		35.2			—			—			—			35.2
Other		(18.1	)		(7.6	)		(0.6	)		—			(26.3	)

Net cash provided by (used in) financing activities		(156.9	)		242.2			216.9			5.1			307.3

Investing activities:
Additions to property, plant and equipment		(3.2	)		(94.7	)		(51.3	)		—			(149.2	)
Acquisition of businesses, net of cash acquired		—			(340.4	)		(177.3	)		—			(517.7	)
Other		—			(1.0	)		4.5			—			3.5

Net cash used in investing activities		(3.2	)		(436.1	)		(224.1	)		—			(663.4	)

Effect of exchange rate changes on cash		—			—			(16.2	)		—			(16.2	)

Net increase (decrease) in cash and cash equivalents		(333.6	)		10.9			(99.5	)		—			(422.2	)
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	$	297.2		$	24.4		$	384.7		$	—		$	706.3


	Nine months ended September 30, 2013
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities, net	$	(53.2	)	$	122.0		$	2.7		$	(8.3	)	$	63.2
Financing activities:
Net change in short-term debt		—			(0.1	)		(11.2	)		—			(11.3	)
(Payments on) proceeds from intercompany transactions		44.9			(55.8	)		18.9			(8.0	)		—
Proceeds from issuance of long-term debt		515.2			—			11.9			—			527.1
Payments on long-term debt		(374.8	)		(0.3	)		(0.9	)		—			(376.0	)
Issuance (repurchase) of common stock, net		469.7			—			—			—			469.7
Excess tax benefits from stock-based compensation		11.4			—			—			—			11.4
Other		(12.4	)		(4.4	)		—			—			(16.8	)

Net cash provided by (used in) financing activities		654.0			(60.6	)		18.7			(8.0	)		604.1

Investing activities:
Additions to property, plant and equipment		(4.7	)		(48.9	)		(62.0	)		—			(115.6	)
Acquisition of businesses, net of cash acquired		(1.0	)		—			(11.7	)		—			(12.7	)
Intercompany investing activities, net		—			(16.3	)		—			16.3			—
Other		7.1			0.6			0.1			—			7.8

Net cash provided by (used in) investing activities		1.4			(64.6	)		(73.6	)		16.3			(120.5	)

Effect of exchange rate changes on cash		—			—			(20.6	)		—			(20.6	)

Net increase (decrease) in cash and cash equivalents		602.2			(3.2	)		(72.8	)		—			526.2
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	$	1,162.4		$	1.8		$	396.1		$	—		$	1,560.3

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