Condensed Consolidating Financial Data

12 Months Ended

Dec. 31, 2014

Condensed Consolidating Financial Data

19. 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 6 ¹⁄₈% Senior Notes due 2022 and Senior Subordinated Notes (see Note 9) 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 and for the years ended December 31, 2014, 2013 and 2012.

Condensed Consolidating Results of Operations

	Year Ended December 31, 2014
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	5,678.9		$	3,407.1		$	(798.9	)	$	8,287.1
Cost of sales		—			4,064.8			2,388.3			(798.9	)		5,654.2
Gross profit		—			1,614.1			1,018.8			—			2,632.9
Selling, general and administrative expenses		104.8			1,130.3			724.9			—			1,960.0
Restructuring costs, net		—			—			7.7			—			7.7
Impairment of goodwill, intangibles and other assets		—			23.2			2.2			—			25.4
Operating earnings (loss)		(104.8	)		460.6			284.0			—			639.8
Interest expense, net		171.9			31.3			7.1			—			210.3
Loss on early extinguishment of debt		56.7			—			—			—			56.7
Income (loss) before taxes and equity earnings of subsidiaries		(333.4	)		429.3			276.9			—			372.8
Income tax provision (benefit)		(126.1	)		162.4			94.0			—			130.3
Equity earnings of subsidiaries		449.8			156.1			—			(605.9	)		—
Net income (loss)		242.5			423.0			182.9			(605.9	)		242.5
Other comprehensive income (loss), net of tax		(122.1	)		(160.9	)		(191.8	)		352.7			(122.1	)
Comprehensive income (loss)	$	120.4		$	262.1		$	(8.9	)	$	(253.2	)	$	120.4
	Year Ended December 31, 2013
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	4,930.5		$	3,191.7		$	(766.3	)	$	7,355.9
Cost of sales		—			3,732.3			2,275.2			(766.3	)		5,241.2
Gross profit		—			1,198.2			916.5			—			2,114.7
Selling, general and administrative expenses		133.8			804.6			581.4			—			1,519.8
Restructuring costs, net		—			5.8			16.2			—			22.0
Operating earnings (loss)		(133.8	)		387.8			318.9			—			572.9
Interest expense, net		199.3			(21.8	)		17.9			—			195.4
Loss on early extinguishment of debt		25.9			—			—			—			25.9
Income (loss) before taxes and equity earnings of subsidiaries		(359.0	)		409.6			301.0			—			351.6
Income tax provision (benefit)		(124.9	)		165.9			106.7			—			147.7
Equity earnings of subsidiaries		438.0			145.0			—			(583.0	)		—
Net income (loss)		203.9			388.7			194.3			(583.0	)		203.9
Other comprehensive income (loss), net of tax		(5.2	)		(2.0	)		(26.1	)		28.1			(5.2	)
Comprehensive income (loss)	$	198.7		$	386.7		$	168.2		$	(554.9	)	$	198.7

	Year Ended December 31, 2012
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	4,448.1		$	2,952.2	$	(704.2	)	$	6,696.1
Cost of sales		—			3,354.8			2,121.1		(704.2	)		4,771.7
Gross profit		—			1,093.3			831.1		—			1,924.4
Selling, general and administrative expenses		84.6			688.3			547.6		—			1,320.5
Restructuring cost, net		—			12.4			14.7		—			27.1
Operating earnings (loss)		(84.6	)		392.6			268.8		—			576.8
Interest expense, net		213.3			(53.7	)		25.7		—			185.3
Income (loss) before taxes and equity earnings of subsidiaries		(297.9	)		446.3			243.1		—			391.5
Income tax provision (benefit)		(113.6	)		194.9			66.3		—			147.6
Equity earnings of subsidiaries		428.2			163.1			—		(591.3	)		—
Net income (loss)		243.9			414.5			176.8		(591.3	)		243.9
Other comprehensive income (loss), net of tax		3.3			12.4			9.1		(21.5	)		3.3
Comprehensive income (loss)	$	247.2		$	426.9		$	185.9	$	(612.8	)	$	247.2

Condensed Consolidating Balance Sheets

	As of December 31, 2014
(in millions)	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	728.8	$	9.3	$	426.7	$	—		$	1,164.8
Accounts receivable		—		1.2		1,276.7		—			1,277.9
Inventories		—		919.4		585.3		—			1,504.7
Other current assets		38.3		161.7		170.6		—			370.6
Total current assets		767.1		1,091.6		2,459.3		—			4,318.0
Property, plant and equipment, net		47.0		456.5		346.4		—			849.9
Goodwill		—		2,572.0		308.2		—			2,880.2
Intangibles, net		—		2,350.7		247.8		—			2,598.5
Intercompany receivables		4,641.2		4,758.6		4,547.7		(13,947.5	)		—
Investment in subsidiaries		7,111.3		2,029.1		—		(9,140.4	)		—
Other non-current assets		56.4		26.9		69.4		—			152.7
Total assets	$	12,623.0	$	13,285.4	$	7,978.8	$	(23,087.9	)	$	10,799.3
Liabilities and stockholders’ equity:
Short-term debt and current portion of long-term debt	$	47.0	$	1.6	$	546.3	$	—		$	594.9
Accounts payable		8.7		529.8		271.4		—			809.9
Other current liabilities		63.6		337.4		271.4		—			672.4
Total current liabilities		119.3		868.8		1,089.1		—			2,077.2
Long-term debt		4,442.0		4.2		17.8		—			4,464.0
Intercompany payables		5,197.4		4,044.0		4,706.1		(13,947.5	)		—
Deferred taxes on income		100.4		1,039.3		82.4		—			1,222.1
Other non-current liabilities		154.6		160.5		111.6		—			426.7
Total stockholders’ equity		2,609.3		7,168.6		1,971.8		(9,140.4	)		2,609.3
Total liabilities and stockholders’ equity	$	12,623.0	$	13,285.4	$	7,978.8	$	(23,087.9	)	$	10,799.3

	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

	Year Ended December 31, 2014
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities:	$	(145.5	)	$	555.1		$	236.5		$	(19.1	)	$	627.0
Financing activities:
Net change in short-term debt		—			—			25.4			—			25.4
(Payments on) proceeds from intercompany transactions		11.8			(74.9	)		44.0			19.1			—
Proceeds from issuance of long-term debt		1,752.5			1.6			10.7			—			1,764.8
Payments on long-term debt		(1,245.7	)		(1.5	)		(0.8	)		—			(1,248.0	)
Issuance (repurchase) of common stock, net		(285.3	)		—			—			—			(285.3	)
Excess tax benefits from stock-based compensation		38.0			—			—			—			38.0
Other		(21.4	)		(7.6	)		(0.4	)		—			(29.4	)
Net cash provided by (used in) financing activities		249.9			(82.4	)		78.9			19.1			265.5
Investing activities:
Additions to property, plant and equipment		(6.2	)		(129.0	)		(66.9	)		—			(202.1	)
Acquisition of business, net of cash acquired		—			(340.5	)		(176.9	)		—			(517.4	)
Other		(0.2	)		(7.4	)		15.6			—			8.0
Net cash used in investing activities		(6.4	)		(476.9	)		(228.2	)		—			(711.5	)
Effect of exchange rate changes on cash		—			—			(144.7	)		—			(144.7	)
Net increase (decrease) in cash and cash equivalents		98.0			(4.2	)		(57.5	)		—			36.3
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	$	728.8		$	9.3		$	426.7		$	—		$	1,164.8

	Year Ended December 31, 2013
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities:	$	(180.6	)	$	675.2		$	182.8		$	(8.9	)	$	668.5
Financing activities:
Net change in short-term debt		—			(0.1	)		102.1			—			102.0
(Payments on) proceeds from intercompany transactions		775.4			(567.5	)		(200.5	)		(7.4	)		—
Proceeds from issuance of long-term debt		1,261.5			—			11.9			—			1,273.4
Payments on long-term debt		(404.5	)		(1.8	)		(1.4	)		—			(407.7	)
Issuance (repurchase) of common stock, net		450.5			—			—			—			450.5
Excess tax benefits from stock-based compensation		11.6			—			—			—			11.6
Other		(19.2	)		(4.4	)		(0.6	)		—			(24.2	)
Net cash provided by (used in) financing activities		2,075.3			(573.8	)		(88.5	)		(7.4	)		1,405.6
Investing activities:
Additions to property, plant and equipment		(37.5	)		(77.7	)		(95.8	)		—			(211.0	)
Acquisition of business, net of cash acquired		(1,807.4	)		—			(12.7	)		—			(1,820.1	)
Intercompany investing activities, net		—			(16.3	)		—			16.3			—
Other		20.8			1.2			51.7			—			73.7
Net cash used in investing activities		(1,824.1	)		(92.8	)		(56.8	)		16.3			(1,957.4	)
Effect of exchange rate changes on cash		—			—			(22.3	)		—			(22.3	)
Net increase in cash and cash equivalents		70.6			8.6			15.2			—			94.4
Cash and cash equivalents at beginning of year		560.2			4.9			469.0			—			1,034.1
Cash and cash equivalents at end of year	$	630.8		$	13.5		$	484.2		$	—		$	1,128.5
	Year Ended December 31, 2012
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities:	$	(171.4	)	$	463.5		$	207.9		$	(19.7	)	$	480.3
Financing activities:
Net change in short-term debt		—			—			74.7			—			74.7
(Payments on) proceeds from intercompany transactions		409.6			(421.3	)		(8.0	)		19.7			—
Proceeds from issuance of long-term debt		800.0			0.5			2.0			—			802.5
Payments on long-term debt		(166.0	)		(0.4	)		(6.3	)		—			(172.7	)
Issuance (repurchase) of common stock, net		(557.9	)		—			—			—			(557.9	)
Excess tax benefits from stock-based compensation		43.0			—			—			—			43.0
Other		(24.4	)		—			(0.5	)		—			(24.9	)
Net cash provided by (used in) financing activities		504.3			(421.2	)		61.9			19.7			164.7
Investing activities:
Additions to property, plant and equipment		(5.2	)		(67.0	)		(82.3	)		—			(154.5	)
Acquisition of business, net of cash acquired		(104.2	)		(3.0	)		(179.1	)		—			(286.3	)
Other		1.3			4.2			7.8			—			13.3
Net cash used in investing activities		(108.1	)		(65.8	)		(253.6	)		—			(427.5	)
Effect of exchange rate changes on cash		—			—			8.3			—			8.3
Net decrease in cash and cash equivalents		224.8			(23.5	)		24.5			—			225.8
Cash and cash equivalents at beginning of year		335.4			28.4			444.5			—			808.3
Cash and cash equivalents at end of year	$	560.2		$	4.9		$	469.0		$	—		$	1,034.1

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.