Condensed Consolidating Financial Data

6 Months Ended

Jun. 30, 2015

Condensed Consolidating Financial Data

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 6 ¹⁄₈% senior notes due 2022 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, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014.

Condensed Consolidating Results of Operations

	Three months ended June 30, 2015
(in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	1,446.1	$	766.1	$	(206.5	)	$	2,005.7
Cost of sales		—			1,039.1		565.6		(206.5	)		1,398.2
Gross profit		—			407.0		200.5		—			607.5
Selling, general and administrative expenses		23.9			264.1		128.0		—			416.0
Restructuring costs, net		—			1.5		0.4		—			1.9
Operating earnings		(23.9	)		141.4		72.1		—			189.6
Interest expense, net		33.6			16.3		2.0		—			51.9
Income (loss) before taxes and equity earnings of subsidiaries		(57.5	)		125.1		70.1		—			137.7
Income tax provision (benefit)		(21.8	)		47.4		26.2		—			51.8
Equity earnings of subsidiaries		121.6			40.3		—		(161.9	)		—
Net income (loss)		85.9			118.0		43.9		(161.9	)		85.9
Other comprehensive income (loss), net of tax		10.5			10.9		17.5		(28.4	)		10.5
Comprehensive income (loss)	$	96.4		$	128.9	$	61.4	$	(190.3	)	$	96.4

	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		(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

	Six months ended June 30, 2015
(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	2,684.1		$	1,436.8		$	(383.7	)	$	3,737.2
Cost of sales		—			1,943.9			1,069.0			(383.7	)		2,629.2
Gross profit		—			740.2			367.8			—			1,108.0
Selling, general and administrative expenses		85.7			562.8			296.2			—			944.7
Restructuring costs, net		2.0			1.5			1.0			—			4.5
Operating earnings		(87.7	)		175.9			70.6			—			158.8
Interest expense, net		67.8			32.5			4.5			—			104.8
Income (loss) before taxes and equity earnings of subsidiaries		(155.5	)		143.4			66.1			—			54.0
Income tax provision (benefit)		(58.9	)		54.3			28.2			—			23.6
Equity earnings of subsidiaries		127.0			32.6			—			(159.6	)		—
Net income (loss)		30.4			121.7			37.9			(159.6	)		30.4
Other comprehensive income (loss), net of tax		(81.1	)		(38.4	)		(62.5	)		100.9			(81.1	)
Comprehensive income (loss)	$	(50.7	)	$	83.3		$	(24.6	)	$	(58.7	)	$	(50.7	)
	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
Reorganization costs, net		—			—			2.6			—			2.6
Operating earnings		(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

Condensed Consolidating Balance Sheets

	As of June, 2015
(in millions)	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	377.0	$	5.2	$	347.7	$	—		$	729.9
Accounts receivable		—		4.4		1,252.1		—			1,256.5
Inventories		—		1,180.8		703.2		—			1,884.0
Other current assets		33.3		238.7		114.7		—			386.7
Total current assets		410.3		1,429.1		2,417.7		—			4,257.1
Property, plant and equipment, net		53.2		466.1		291.1		—			810.4
Goodwill		—		2,572.2		313.0		—			2,885.2
Intangibles, net		—		2,345.4		233.6		—			2,579.0
Intercompany receivables		2,875.0		2,385.0		2,110.0		(7,370.0	)		—
Investment in subsidiaries		7,171.8		1,916.2		—		(9,088.0	)		—
Other non-current assets		50.4		26.3		73.3		—			150.0
Total assets	$	10,560.7	$	11,140.3	$	5,438.7	$	(16,458.0	)	$	10,681.7
Liabilities and stockholders’ equity
Short-term debt and current portion of long-term debt	$	47.0	$	1.5	$	540.0	$	—		$	588.5
Accounts payable		3.0		524.0		273.1		—			800.1
Other current liabilities		61.4		304.0		231.9		—			597.3
Total current liabilities		111.4		829.5		1,045.0		—			1,985.9
Long-term debt		4,416.4		3.5		17.1		—			4,437.0
Intercompany payables		3,148.1		1,877.0		2,344.9		(7,370.0	)		—
Deferred taxes on income		120.4		1,028.1		80.2		—			1,228.7
Other non-current liabilities		174.0		149.2		116.5		—			439.7
Total stockholders’ equity		2,590.4		7,253.0		1,835.0		(9,088.0	)		2,590.4
Total liabilities and stockholders’ equity	$	10,560.7	$	11,140.3	$	5,438.7	$	(16,458.0	)	$	10,681.7
	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

Condensed Consolidating Statements of Cash Flows

	Six months ended June 30, 2015
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities, net	$	(110.6	)	$	(97.1	)	$	(64.3	)	$	—		$	(272.0	)
Financing activities:
Net change in short-term debt		—			(0.3	)		(6.1	)		—			(6.4	)
(Payments on) proceeds from intercompany transactions		(200.3	)		173.8			31.1			(4.6	)		—
Proceeds from issuance of long-term debt		2.0			—			2.0			—			4.0
Payments on long-term debt		(23.5	)		(0.5	)		(0.3	)		—			(24.3	)
Issuance (repurchase) of common stock, net		(33.5	)		—			—			—			(33.5	)
Excess tax benefits from stock-based compensation		21.5			—			—			—			21.5
Other		1.8			(0.4	)		(1.8	)		—			(0.4	)
Net cash provided by (used in) financing activities		(232.0	)		172.6			24.9			(4.6	)		(39.1	)
Investing activities:
Additions to property, plant and equipment		(9.2	)		(66.3	)		(22.2	)		—			(97.7	)
Acquisition of businesses, net of cash acquired		—			(7.1	)		(26.1	)		—			(33.2	)
Intercompany investing activities, net		—			(4.6	)		—			4.6			—
Other		—			(1.6	)		40.7			—			39.1
Net cash used in investing activities		(9.2	)		(79.6	)		(7.6	)		4.6			(91.8	)
Effect of exchange rate changes on cash		—			—			(32.0	)		—			(32.0	)
Net decrease in cash and cash equivalents		(351.8	)		(4.1	)		(79.0	)		—			(434.9	)
Cash and cash equivalents at beginning of year		728.8			9.3			426.7			—			1,164.8
Cash and cash equivalents at end of year	$	377.0		$	5.2		$	347.7		$	—		$	729.9
	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

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.