SECURITIES AND EXCHANGE COMMISSION
Delaware | 6512 | 13-3398766 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Delaware | 6512 | 20-1059842 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Delaware | 6512 | 13-3398767 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
New York, New York 10153
(212) 702-4300
(Address, Including Zip Code, and Telephone Number,
Including Area Code, of Registrants’ Principal Executive Offices)
Principal Executive Officer and Vice Chairman of the Board
767 Fifth Avenue, Suite 4700
New York, New York 10153
(Name, Address, Including Zip Code, and Telephone Number,
Including Area Code, of Agent For Service)
Proskauer Rose LLP
1585 Broadway
New York, New York 10036
Telephone: (212) 969-3000
Facsimile: (212) 969-2900
Title of Each Class of Securities to be Registered | Amount to be Registered(1) | Proposed Maximum Offering Price Per Note(1) | Proposed Maximum Aggregate Offering Price(1) | Amount of Registration Fee(2) | ||||
7 1/8% Senior Notes due 2013 | $500,000,000 | 100% | $500,000,000 | $15,113.43 | ||||
Guarantee(3) | — | — | — | — |
SUBJECT TO COMPLETION, DATED JUNE 21, 2007 |
PROSPECTUS |
Page | ||
The Offering of the Private Notes | On January 17, 2007, we issued $500 million in aggregate principal amount of our private notes in an offering not registered under the Securities Act. At the time we issued the private notes on January 17, 2007, we entered into a registration rights agreement in which we agreed to offer to exchange the private notes for new notes which have been registered under the Securities Act. This exchange offer is intended to satisfy that obligation. The private notes issued January 17, 2007 were additional notes issued under an indenture dated February 7, 2005 as described elsewhere in this prospectus. On February 1, 2005, we issued and sold $480.0 million of 7 1/8% senior notes due 2013, or the existing notes. | |
The Exchange Offer | We are offering to exchange the new notes which have been registered under the Securities Act for the private notes. As of this date, there is $500 million aggregate principal amount of private notes outstanding. | |
Required Representations | In order to participate in this exchange offer, you will be required to make certain representations to us in a letter of transmittal, including that: · any new notes will be acquired by you in the ordinary course of your business; · you have not engaged in, do not intend to engage in, and do not have an arrangement or understanding with any person to participate in a distribution of the new notes; and · you are not an affiliate of our company. | |
Resale of New Notes | We believe that, subject to limited exceptions, the new notes may be freely traded by you without compliance with the registration and prospectus delivery provisions of the Securities Act, provided that: · you are acquiring new notes in the ordinary course of your business; · you are not participating, do not intend to participate and have no arrangement or understanding with any person to participate in the distribution of the new notes; and · you are not an affiliate of our company. | |
If our belief is inaccurate and you transfer any new note issued to you in the exchange offer without delivering a prospectus meeting the requirements of the Securities Act or without an exemption from registration of your new notes from such requirements, you may incur liability under the Securities Act. We do not assume, or indemnify you against, such liability. | ||
Each broker-dealer that is issued new notes for its own account in exchange for private notes which were acquired by such broker-dealer as a result of market-making or other trading activities also must acknowledge that it has not entered into any arrangement or understanding with us or any of our affiliates to distribute the new notes and will deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of the new notes issued in the exchange offer. | ||
We have agreed in the registration rights agreement that a broker-dealer may use this prospectus for an offer to resell, resale or other retransfer of the new notes issued to it in the exchange offer. | ||
Expiration Date | The exchange offer will expire at 5:00 p.m., New York City time, on , 2007, unless extended, in which case the term “expiration date” shall mean the latest date and time to which we extend the exchange offer. |
Conditions to the Exchange Offer | The exchange offer is subject to certain customary conditions, which may be waived by us. The exchange offer is not conditioned upon any minimum principal amount of private notes being tendered. | |
Procedures for Tendering Private Notes | If you wish to tender your private notes for exchange, you must transmit to Wilmington Trust Company, as exchange agent, at the address set forth in this prospectus under the heading “The Exchange Offer — Exchange Agent,” and on the front cover of the letter of transmittal, on or before the expiration date, a properly completed and duly executed letter of transmittal, which accompanies this prospectus, or a facsimile of the letter of transmittal and either: · the private notes and any other required documentation, to the exchange agent; or · a computer generated message transmitted by means of DTC’s Automated Tender Offer Program system and received by the exchange agent and forming a part of a confirmation of book entry transfer in which you acknowledge and agree to be bound by the terms of the letter of transmittal. | |
If either of these procedures cannot be satisfied on a timely basis, then you should comply with the guaranteed delivery procedures described below. By executing the letter of transmittal, each holder of private notes will make certain representations to us described under “The Exchange Offer — Procedures for Tendering.” | ||
Special Procedures for Beneficial Owners | If you are a beneficial owner whose private notes are registered in the name of a broker, dealer, commercial bank, trust company or other nominee and you wish to tender your private notes in the exchange offer, you should contact such registered holder promptly and instruct such registered holder to tender on your behalf. If you wish to tender on your own behalf, you must, prior to completing and executing the letter of transmittal and delivering your private notes, either make appropriate arrangements to register ownership of the private notes in your name or obtain a properly completed bond power from the registered holder. The transfer of registered ownership may take considerable time and may not be able to be completed prior to the expiration date. | |
Guaranteed Delivery Procedures | If you wish to tender private notes and time will not permit the documents required by the letter of transmittal to reach the exchange agent prior to the expiration date, or the procedure for book-entry transfer cannot be completed on a timely basis, you must tender your private notes according to the guaranteed delivery procedures described under “The Exchange Offer — Guaranteed Delivery Procedures.” | |
Acceptance of Private Notes and Delivery of New Notes | Subject to the conditions described under “The Exchange Offer — Conditions,” we will accept for exchange any and all private notes which are validly tendered in the exchange offer and not withdrawn, prior to 5:00 p.m., New York City time, on the expiration date. | |
Withdrawal Rights | You may withdraw your tender of private notes at any time prior to 5:00 p.m., New York City time, on the expiration date, subject to compliance with the procedures for withdrawal described in this prospectus under the heading “The Exchange Offer — Withdrawal of Tenders.” | |
Federal Income Tax Consequences | For a discussion of the material federal income tax considerations relating to the exchange of private notes for the new notes as well as the ownership of the new notes, see “Certain U.S. Federal Income Tax Consequences.” |
Exchange Agent | The Wilmington Trust Company is serving as the exchange agent. The address, telephone number and facsimile number of the exchange agent are set forth in this prospectus under the heading “The Exchange Offer — Exchange Agent.” | |
Consequences of Failure to Exchange Private Notes | If you do not exchange private notes for new notes, you will continue to be subject to the restrictions on transfer provided in the private notes and in the indenture governing the private notes. In general, the unregistered private notes may not be offered or sold, unless they are registered under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the Securities Act and applicable state securities laws. |
Issuer | AREP is a holding company. Its operations are conducted through its subsidiaries and substantially all of its assets consist of a 99% limited partnership interest in its subsidiary, AREH, which is a holding company for its operating subsidiaries and investments. The new notes will be guaranteed by AREH. | |
Co-Issuer | AREP Finance is a wholly owned subsidiary of AREP. It was formed solely for the purpose of serving as a co-issuer of debt securities of AREP in order to facilitate offerings of the debt securities. Other than as a co-issuer of the notes, AREP Finance does not and will not have any operations or assets and will not have any revenues. As a result, holders of the notes should not expect AREP Finance to participate in servicing any obligations on the new notes. | |
Notes Offered | $500 million in aggregate principal amount of 7 1/8% senior notes due 2013. | |
Maturity | February 15, 2013. | |
Interest Payment Dates | February 15 and August 15 of each year, commencing February 15, 2007. | |
Guarantee | If we cannot make payments on the new notes when they are due, AREH must make them instead. Other than AREH, none of our subsidiaries will guarantee payments on the new notes. | |
Ranking | The new notes and the guarantee will rank equally with all of our and the guarantor’s existing and future senior unsecured indebtedness, including our existing notes, and will rank senior to all of our and the guarantor’s existing and future subordinated indebtedness. The new notes and the guarantee will be effectively subordinated to all of our and the guarantor’s existing and future secured indebtedness, to the extent of the collateral securing such indebtedness. The new notes and the guarantee also will be effectively subordinated to all indebtedness and other liabilities, including trade payables, of all our subsidiaries other than AREH. As of March 31, 2007, the new notes and the guarantee would have been effectively subordinated to an aggregate of $375.5 million of AREH’s secured debt and our subsidiaries’ debt, excluding trade payables. | |
Optional Redemption | We may, at our option, redeem some or all of the new notes at any time on or after February 15, 2009, at the redemption prices listed under “Description of Notes — Optional Redemption.” | |
In addition, prior to February 15, 2008, we may, at our option, redeem up to 35% of the new notes with the proceeds of certain sales of our equity at the redemption price listed under “Description of Notes — Optional Redemption.” We may make the redemption only if, after the redemption, at least 65% of the aggregate principal amount of the notes issued remains outstanding. |
Redemption Based on Gaming Laws | The new notes are subject to mandatory disposition and redemption requirements following certain determinations by applicable gaming authorities. On April 22, 2007, AEP entered into a Membership Interest Purchase Agreement with W2007/ACEP Holdings, LLC, an affiliate of Whitehall Street Real Estate Funds, to sell all of the issued and outstanding membership interests of ACEP which comprises our gaming operations. If the sale is consummated, the new notes will no longer be subject to redemption based on gaming laws. | |
Certain Covenants | We will issue the new notes under the indenture with AREH and Wilmington Trust Company, as trustee acting on your behalf, dated February 7, 2005, which was established in connection with our existing notes. The indenture, among other things, restricts our and AREH’s ability to: · incur additional debt; · pay dividends and make distributions; · repurchase equity securities; · create liens; · enter into transactions with affiliates; and · merge or consolidate. | |
Our subsidiaries other than AREH will not be restricted in their ability to incur debt, create liens or merge or consolidate. | ||
Absence of Established Market for Notes | The new notes will be new securities for which there is currently no market. We cannot assure you that a liquid market for the new notes will develop or be maintained. |
In addition, we have been named as defendants in various lawsuits challenging the transaction. Specifically, a consolidated action is pending in the Court of Chancery of the State of Delaware which alleges, among other things, that the purchase price is unfair to Lear stockholders. A preliminary injunction was issued requiring supplemental disclosure. The supplemental disclosure requirement has been satisfied and, consequently, the injunction has been dissolved. A consolidated action filed in Michigan state court making virtually identical allegations was dismissed by the court because of the prior-filed Delaware action. Plaintiffs in the Michigan state action have filed a motion for reconsideration which is pending. Finally, a complaint is pending in the United States District Court for the Eastern District of Michigan, which alleges that the transaction would violate certain provisions of the Employment Retirement Income Security Act (referred to as the Federal Action). Motions to dismiss the Federal Action have been fully briefed and await disposition, as does plaintiff’s application for preliminary injunction. Based upon the above there is a risk that the transaction may be enjoined, or, if the transaction is completed, liability may nevertheless be imposed thereafter.
“— Procedures for Tendering” at any time prior to the expiration date.
Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-1626
Attention: Alisha Clendaniel
Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-1626
Attention: Alisha Clendaniel
(302) 636-4139
Attention: Exchanges
(302) 636-6470
For Information Call
(302) 636-6470
Three Months Ended March 31, | Year Ended December 31, | |||||||||||||||||||||
2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
(in 000s, except per unit amounts and ratio) | ||||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||
Total revenues | $ | 351,379 | $ | 350,147 | $ | 1,477,930 | $ | 900,962 | $ | 361,538 | $ | 309,213 | $ | 358,109 | ||||||||
Income (loss) from continuing operations | $ | 68,717 | $ | (9,416 | ) | $ | 23,069 | $ | (22,656 | ) | $ | 65,176 | $ | 42,415 | $ | 53,046 | ||||||
Total income (loss) from discontinued operations | $ | 27,861 | $ | 59,146 | $ | 775,764 | $ | (3,013 | ) | $ | 88,578 | $ | 26,005 | $ | (4,320 | ) | ||||||
Earnings (loss) before cumulative effect of accounting change | $ | 96,578 | $ | 49,730 | $ | 798,833 | $ | (25,669 | ) | $ | 153,754 | $ | 68,420 | $ | 48,726 | |||||||
Cumulative effect of accounting change | — | — | — | — | — | 1,912 | — | |||||||||||||||
Net earnings (loss) | $ | 96,578 | $ | 49,730 | $ | 798,833 | $ | (25,669 | ) | $ | 153,754 | $ | 70,332 | $ | 48,726 | |||||||
Net earnings (loss) attributable to: | ||||||||||||||||||||||
Limited partners | $ | 94,656 | $ | 48,741 | $ | 782,936 | $ | (20,292 | ) | $ | 130,850 | $ | 51,074 | $ | 63,168 | |||||||
General partner | 1,922 | 989 | 15,897 | (5,377 | ) | 22,904 | 19,258 | (14,442 | ) | |||||||||||||
Net earnings (loss) | $ | 96,578 | $ | 49,730 | $ | 798,833 | $ | (25,669 | ) | $ | 153,754 | $ | 70,332 | $ | 48,726 | |||||||
Basic earnings: | ||||||||||||||||||||||
Income (loss) from continuing operations per LP Unit | $ | 1.09 | $ | (0.15 | ) | $ | 0.40 | $ | (0.31 | ) | $ | 0.96 | $ | 0.50 | $ | 1.37 | ||||||
Income from (loss) discontinued operations per LP Unit | 0.44 | 0.94 | 12.29 | (0.05 | ) | 1.88 | 0.55 | (0.10 | ) | |||||||||||||
Basic earnings (loss) per LP Unit | $ | 1.53 | $ | 0.79 | $ | 12.69 | $ | (0.36 | ) | $ | 2.84 | $ | 1.05 | $ | 1.27 | |||||||
Weighted average limited partnership units outstanding | 61,857 | 61,857 | 61,857 | 54,085 | 46,098 | 46,098 | 46,098 | |||||||||||||||
Diluted earnings: | ||||||||||||||||||||||
Income (loss) from continuing operations | $ | 1.09 | $ | (0.15 | ) | $ | 0.40 | $ | (0.31 | ) | $ | 0.95 | $ | 0.50 | $ | 1.20 | ||||||
Income (loss) from discontinued operations per LP Unit | 0.44 | 0.94 | 12.29 | (0.05 | ) | 1.69 | 0.55 | (0.08 | ) | |||||||||||||
Diluted earnings (loss) per LP Unit | $ | 1.53 | $ | 0.79 | $ | 12,69 | $ | (0.36 | ) | $ | 2.64 | $ | 1.05 | $ | 1.12 | |||||||
Weighted average limited partnership units and equivalent partnership units outstanding | 61,857 | 61,857 | 61,857 | 54,085 | 51,542 | 46,098 | 56,467 | |||||||||||||||
Other financial data: | ||||||||||||||||||||||
Cash dividends declared (per LP Unit) | $ | 0.15 | $ | 0.10 | $ | 0.40 | $ | 0.20 | — | — | — | |||||||||||
Ratio of earnings to fixed charges(1) | 2.8 | — | — | — | 2.6 | 2.0 | 2.2 |
As of March 31, | As of December 31, | |||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003(1) | 2002 | |||||||||||||
(in $000s) | ||||||||||||||||||
Balance sheet data: | ||||||||||||||||||
Cash and cash equivalents | $ | 2,331,521 | $ | 1,912,235 | $ | 460,091 | $ | 762,708 | $ | 487,498 | $ | 79,540 | ||||||
Investments | 765,495 | 719,047 | 820,817 | 350,527 | 167,727 | 395,495 | ||||||||||||
Property, plant and equipment, net | 898,594 | 907,071 | 749,712 | 580,428 | 597,487 | 735,236 | ||||||||||||
Total assets | 4,622,667 | 4,244,747 | 3,963,545 | 2,861,153 | 2,156,892 | 2,002,493 | ||||||||||||
Long term debt (including current portion and debt related to assets held for sale) | 1,699,118 | 1,208,960 | 1,435,821 | 759,807 | 374,421 | 435,675 | ||||||||||||
Liability for preferred limited partnership units(2) | 119,073 | 117,656 | 112,067 | 106,731 | 101,649 | — | ||||||||||||
Partners’ equity | 2,347,478 | 2,310,655 | 1,495,532 | 1,641,755 | 1,527,396 | 1,387,253 |
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
(amounts in 000s)
March 31, 2007 | ||||||||||||||||||||
Historical | Pro Forma Adjustments | |||||||||||||||||||
AREP | LEAR | Acquisition of Lear | Sale of ACEP | Pro Forma Results | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 2,331,521 | $ | 330,400 | $ | (1,456,491 | ) | (4a) | $ | 1,004,450 | (5a) | $ | 2,209,880 | |||||||
Investments | 563,552 | — | — | (3,159 | ) | (5b) | 560,393 | |||||||||||||
Inventories, net | 235,358 | 599,000 | — | — | 834,358 | |||||||||||||||
Trade, notes and other receivables, net | 169,841 | 2,412,700 | — | (6,348 | ) | (5b) | 2,576,193 | |||||||||||||
Other current assets | 124,594 | 355,900 | — | (18,535 | ) | (5b) | 461,959 | |||||||||||||
Total current assets | 3,424,866 | 3,698,000 | (1,456,491 | ) | 976,408 | 6,642,783 | ||||||||||||||
Property, plant and equipment, net | 898,594 | 1,425,900 | — | (417,978 | ) | (5b) | 1,906,516 | |||||||||||||
Investments | 201,943 | 183,200 | — | — | 385,143 | |||||||||||||||
Goodwill | — | 2,006,600 | 2,182,900 | (4b) | — | 4,189,500 | ||||||||||||||
Intangible assets | 25,772 | 40,900 | — | (2,370 | ) | (5b) | 64,302 | |||||||||||||
Other assets | 71,492 | 306,400 | — | (41,631 | ) | (5b) | 336,261 | |||||||||||||
Total assets | $ | 4,622,667 | $ | 7,661,000 | $ | 726,409 | $ | 514,429 | $ | 13,524,505 | ||||||||||
LIABILITIES AND PARTNERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 66,497 | $ | 2,480,300 | $ | — | $ | (6,749 | ) | (5b) | $ | 2,540,048 | ||||||||
Accrued expenses and other current liabilities | 168,744 | 1,181,000 | — | 210,981 | (5b) | 1,560,725 | ||||||||||||||
Current portion of long-term debt | 23,620 | 26,400 | — | (502 | ) | (5b) | 49,518 | |||||||||||||
Total current liabilities | 258,861 | 3,687,700 | — | 203,730 | 4,150,291 | |||||||||||||||
Long-term debt | 1,675,498 | 2,431,800 | 1,481,600 | (4c) | (257,202 | ) | (5b) | (5c) | 5,331,696 | |||||||||||
Other non-current liabilities | 23,738 | 820,100 | — | (6,144 | ) | (5b) | 837,694 | |||||||||||||
Preferred limited partnership units | 119,073 | — | — | — | 119,073 | |||||||||||||||
Total long-term liabilities | 1,818,309 | 3,251,900 | 1,481,600 | (263,346 | ) | 6,288,463 | ||||||||||||||
Total Liabilities | 2,077,170 | 6,939,600 | 1,481,600 | (59,616 | ) | 10,438,754 | ||||||||||||||
Minority interests | 198,019 | 28,900 | — | — | 226,919 | |||||||||||||||
Partners’ equity | 2,347,478 | 692,500 | (755,191 | ) | (4d) | 574,045 | (5d) | 2,858,832 | ||||||||||||
Total liabilities and partners’ equity | $ | 4,622,667 | $ | 7,661,000 | $ | 726,409 | $ | 514,429 | $ | 13,524,505 |
(amounts in 000s except per unit amounts)
Three Months Ended March 31, 2007 | ||||||||||||||||||||||
Historical | Pro Forma Adjustments | |||||||||||||||||||||
AREP | LEAR | Acquisition of Lear | Lear IAC Transaction (4f) | Sale of ACEP (5e) | Pro Forma Results | |||||||||||||||||
Revenues: | ||||||||||||||||||||||
Lear Automotive | $ | — | $ | 4,406,100 | $ | — | $ | (580,500 | ) | $ | — | $ | 3,825,600 | |||||||||
Gaming | 112,888 | — | — | — | (112,888 | ) | — | |||||||||||||||
Real Estate | 27,887 | — | — | — | — | 27,887 | ||||||||||||||||
Home Furnishings | 210,604 | — | — | — | — | 210,604 | ||||||||||||||||
351,379 | 4,406,100 | — | (580,500 | ) | (112,888 | ) | 4,064,091 | |||||||||||||||
Expenses: | ||||||||||||||||||||||
Lear Automotive | — | 4,220,700 | — | (579,600 | ) | — | 3,641,100 | |||||||||||||||
Loss on divestiture of Lear’s Interior business | — | 25,600 | — | (25,600 | ) | — | — | |||||||||||||||
Gaming | 89,661 | — | — | — | (89,661 | ) | — | |||||||||||||||
Real Estate | 23,606 | — | — | — | — | 23,606 | ||||||||||||||||
Home Furnishings | 249,619 | — | — | — | — | 249,619 | ||||||||||||||||
Holding Company Expenses | 7,679 | — | — | — | — | 7,679 | ||||||||||||||||
370,565 | 4,246,300 | — | (605,200 | ) | (89,661 | ) | 3,922,004 | |||||||||||||||
Operating income (loss) | (19,186 | ) | 159,800 | — | 24,700 | (23,227 | ) | 142,087 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||||||
Interest expense | (32,977 | ) | (51,500 | ) | (27,743 | ) | (4e) | 200 | 5,436 | (106,584 | ) | |||||||||||
Interest and other income | 31,458 | — | — | — | (419 | ) | 31,039 | |||||||||||||||
Other income (expense), net | 84,781 | (17,200 | ) | — | 3,100 | — | 70,681 | |||||||||||||||
Equity on earnings of affiliate | — | 1,300 | — | (400 | ) | (4g) | — | 900 | ||||||||||||||
Income (loss) from continuing operations before income taxes and minority interests | 64,076 | 92,400 | (27,743 | ) | 27,600 | (18,210 | ) | 138,123 | ||||||||||||||
Income tax expense | (6,949 | ) | (32,400 | ) | — | 1,600 | (4h) | 6,192 | (31,557 | ) | ||||||||||||
Minority interests | 11,590 | (10,100 | ) | — | (300 | ) | — | 1,190 | ||||||||||||||
Income (loss) from continuing operations | 68,717 | 49,900 | (27,743 | ) | 28,900 | (12,018 | ) | 107,756 | ||||||||||||||
Income (loss) from discontinued operations | 27,861 | — | — | — | 12,018 | 39,879 | ||||||||||||||||
Net earnings | $ | 96,578 | $ | 49,900 | $ | (27,743 | ) | $ | 28,900 | $ | — | $ | 147,635 | |||||||||
Net earnings (loss) attributable to: | �� | |||||||||||||||||||||
Limited partner | $ | 94,656 | $ | 48,907 | $ | (27,191 | ) | $ | 28,325 | $ | — | $ | 144,697 | |||||||||
General partner | 1,922 | 993 | (552 | ) | 575 | — | 2,938 | |||||||||||||||
$ | 96,578 | $ | 49,900 | $ | (27,743 | ) | $ | 28,900 | $ | — | $ | 147,635 | ||||||||||
Net earnings per limited partnership unit: | ||||||||||||||||||||||
Basic earnings: | ||||||||||||||||||||||
Income from continuing operations | $ | 1.09 | $ | 1.71 | ||||||||||||||||||
Income from discontinued operations | 0.44 | 0.63 | ||||||||||||||||||||
Basic earnings per LP unit | $ | 1.53 | $ | 2.34 | ||||||||||||||||||
Weighted average limited partnership units outstanding: | 61,857 | 61,857 | ||||||||||||||||||||
Diluted earnings: | ||||||||||||||||||||||
Income from continuing operations | $ | 1.09 | $ | 1.70 | ||||||||||||||||||
Income from discontinued operations | 0.44 | 0.62 | ||||||||||||||||||||
Diluted earnings per LP unit | $ | 1.53 | $ | 2.32 | ||||||||||||||||||
Weighted average LP units and equivalent partnership units outstanding | 61,857 | 62,920 |
(amounts in 000s except per unit amounts)
Year Ended December 31, 2006 | ||||||||||||||||||||
Historical | Pro Forma Adjustments | |||||||||||||||||||
AREP | LEAR | Acquisition of Lear | Lear IAC Transactions (4f) | Sale of ACEP (5e) | Pro Forma Results | |||||||||||||||
Revenues: | ||||||||||||||||||||
Lear Automotive | $ | — | $ | 17,838,900 | $ | — | $ | (3,067,200 | ) | $ | — | $ | 14,771,700 | |||||||
Gaming | 385,699 | — | — | — | (385,699 | ) | — | |||||||||||||
Real Estate | 134,575 | — | — | — | — | 134,575 | ||||||||||||||
Home Furnishings | 957,656 | — | — | — | — | 957,656 | ||||||||||||||
1,477,930 | 17,838,900 | — | $ | (3,067,200 | ) | (385,699 | ) | 15,863,931 | ||||||||||||
Expenses: | ||||||||||||||||||||
Lear Automotive | — | 17,545,500 | — | (3,247,300 | ) | — | 14,298,200 | |||||||||||||
Loss on divestiture of Lear’s Interior business | — | 636,000 | — | (636,000 | ) | — | — | |||||||||||||
Gaming | 326,984 | — | — | — | (326,984 | ) | — | |||||||||||||
Real Estate | 106,621 | — | — | — | — | 106,621 | ||||||||||||||
Home Furnishings | 1,108,293 | — | — | — | — | 1,108,293 | ||||||||||||||
Holding Company Expenses | 25,822 | — | — | — | — | 25,822 | ||||||||||||||
1,567,720 | 18,181,500 | — | (3,883,300 | ) | (326,984 | ) | 15,538,936 | |||||||||||||
Operating income (loss) | (89,790 | ) | (342,600 | ) | — | 816,100 | (58,715 | ) | 324,995 | |||||||||||
Other income (expense), net: | ||||||||||||||||||||
Interest expense | (106,612 | ) | (209,800 | ) | (110,972 | ) | (4e) | 400 | 21,314 | (405,670 | ) | |||||||||
Interest and other income | 52,672 | — | — | — | (2,239 | ) | 50,433 | |||||||||||||
Other income (expense), net | 99,277 | (101,000 | ) | — | 6,000 | 239 | 4,516 | |||||||||||||
Equity on earnings of affiliate | 12,620 | 16,200 | — | (43,400 | )(4g) | — | (14,580 | ) | ||||||||||||
Loss from continuing operations before income taxes and minority interests | (31,833 | ) | (637,200 | ) | (110,972 | ) | 779,100 | (39,401 | ) | (40,306 | ) | |||||||||
Income tax expense | (13,271 | ) | (54,900 | ) | — | (13,700 | )(4h) | 12,758 | (69,113 | ) | ||||||||||
Minority interests | 68,173 | (18,300 | ) | — | (1,100 | ) | — | 48,773 | ||||||||||||
Income (loss) from continuing operations | 23,069 | (710,400 | ) | (110,972 | ) | 764,300 | (26,643 | ) | (60,646 | ) | ||||||||||
Income (loss) from discontinued operations | 775,764 | — | — | — | 26,643 | 802,407 | ||||||||||||||
Income (loss) before cumulative effect of a change in accounting principle | 798,833 | (710,400 | ) | (110,972 | ) | 764,300 | — | 741,761 | ||||||||||||
Cumulative effect of a change in accounting principle | — | 2,900 | — | — | — | 2,900 | ||||||||||||||
Net earnings (loss) | $ | 798,833 | $ | (707,500 | ) | $ | (110,972 | ) | $ | 764,300 | $ | — | $ | 744,661 | ||||||
Net earnings (loss) attributable to: | ||||||||||||||||||||
Limited partner | $ | 782,936 | $ | (693,420 | ) | $ | (108,764 | ) | 749,090 | $ | — | $ | 729,842 | |||||||
General partner | 15,897 | (14,080 | ) | (2,208 | ) | 15,210 | — | 14,819 | ||||||||||||
$ | 798,833 | $ | (707,500 | ) | $ | (110,972 | ) | $ | 764,300 | $ | — | $ | 744,661 | |||||||
Net earnings per limited partnership unit: | ||||||||||||||||||||
Basic earnings: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.40 | $ | (0.93 | ) | |||||||||||||||
Income from discontinued operations | 12.29 | 12.71 | ||||||||||||||||||
Cumulative effect of a change in accounting principle | — | 0.05 | ||||||||||||||||||
Basic earnings (loss) per LP unit | $ | 12.69 | $ | 11.83 | ||||||||||||||||
Weighted average limited partnership units outstanding: | 61,857 | 61,857 | ||||||||||||||||||
Diluted earnings: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.40 | $ | (0.93 | ) | |||||||||||||||
Income from discontinued operations | 12.29 | 12.71 | ||||||||||||||||||
Cumulative effect of a change in accounting principle | — | 0.05 | ||||||||||||||||||
Diluted earnings per LP unit | $ | 12.69 | $ | 11.83 | ||||||||||||||||
Weighted average LP units and equivalent partnership units outstanding: | 61,857 | 61,857 |
(amounts in 000s except per unit amounts)
Year Ended December 31, 2005 | ||||||||||
Historical | Pro Forma Adjustments | |||||||||
AREP | Sale of ACEP (5e) | Pro Forma Results | ||||||||
Revenues: | ||||||||||
Gaming | $ | 327,982 | $ | (327,982 | ) | $ | — | |||
Real Estate | 100,299 | — | 100,299 | |||||||
Home Furnishings | 472,681 | — | 472,681 | |||||||
900,962 | (327,982 | ) | 572,980 | |||||||
Expenses: | ||||||||||
Gaming | 260,955 | (260,955 | ) | — | ||||||
Real Estate | 82,512 | — | 82,512 | |||||||
Home Furnishings | 495,110 | — | 495,110 | |||||||
Holding Company Expenses | 12,478 | — | 12,478 | |||||||
Acquisition costs | 4,664 | — | 4,664 | |||||||
855,719 | (260,955 | ) | 594,764 | |||||||
Operating income (loss) | 45,243 | (67,027 | ) | (21,784 | ) | |||||
Other income (expense), net: | ||||||||||
Interest expense | (91,174 | ) | 18,846 | (72,328 | ) | |||||
Interest and other income | 42,791 | (1,617 | ) | 41,174 | ||||||
Other income (expense), net | (12,861 | ) | (25 | ) | (12,886 | ) | ||||
Equity on earnings of affiliate | 1,375 | — | 1,375 | |||||||
Loss from continuing operations before income taxes and minority interests | (14,626 | ) | (49,823 | ) | (64,449 | ) | ||||
Income tax expense | (18,170 | ) | 16,789 | (1,381 | ) | |||||
Minority interests | 10,140 | — | 10,140 | |||||||
Loss from continuing operations | (22,656 | ) | (33,034 | ) | (55,690 | ) | ||||
Income (loss) from discontinued operations | (3,013 | ) | 33,034 | 30,021 | ||||||
Net loss | $ | (25,669 | ) | $ | — | $ | (25,669) | |||
Net loss attributable to: | ||||||||||
Limited partner | $ | (20,292 | ) | $ | — | $ | (20,292 | ) | ||
General partner | (5,377 | ) | — | (5,377 | ) | |||||
$ | (25,669 | ) | $ | — | $ | (25,669 | ) | |||
Net loss per limited partnership unit: | ||||||||||
Basic earnings: | ||||||||||
Loss from continuing operations | $ | (0.31 | ) | $ | (0.90 | ) | ||||
Income from discontinued��operations | (0.05 | ) | 0.54 | |||||||
Basic loss per LP unit | $ | (0.36 | ) | $ | (0.36 | ) | ||||
Weighted average limited partnership units outstanding: | 54,085 | 54,085 | ||||||||
Diluted earnings: | ||||||||||
Loss from continuing operations | $ | (0.31 | ) | $ | (0.90 | ) | ||||
Income (loss) from discontinued operations | (0.05 | ) | 0.54 | |||||||
Diluted loss per LP unit | $ | (0.36 | ) | $ | (0.36 | ) | ||||
Weighted average LP units and equivalent partnership units outstanding | 54,085 | 54,085 |
(amounts in 000s except per unit amounts)
Year Ended December 31, 2004 | ||||||||||
Historical | Pro Forma Adjustments | |||||||||
AREP | Sale of ACEP (5e) | Pro Forma Results | ||||||||
Revenues: | ||||||||||
Gaming | $ | 299,981 | $ | (299,981 | ) | $ | — | |||
Real Estate | 61,557 | — | 61,557 | |||||||
361,538 | (299,981 | ) | 61,557 | |||||||
Expenses: | ||||||||||
Gaming | 251,119 | (251,119 | ) | — | ||||||
Real Estate | 49,681 | — | 49,681 | |||||||
Holding Company Expenses | 4,327 | — | 4,327 | |||||||
Acquisition costs | 414 | — | 414 | |||||||
305,541 | (251,119 | ) | 54,422 | |||||||
Operating income (loss) | 55,997 | (48,862 | ) | 7,135 | ||||||
Other income (expense), net: | ||||||||||
Interest expense | (47,320 | ) | 18,939 | (28,381 | ) | |||||
Interest and other income | 42,145 | (1,049 | ) | 41,096 | ||||||
Other income (expense), net | 24,453 | — | 24,453 | |||||||
Income (Loss) from continuing operations before income taxes | 75,275 | (30,972 | ) | 44,303 | ||||||
Income tax expense | (10,099 | ) | 10,099 | — | ||||||
Income (loss) from continuing operations | 65,176 | (20,873 | ) | 44,303 | ||||||
Income from discontinued operations | 88,578 | 20,873 | 109,451 | |||||||
Net earnings | $ | 153,754 | $ | — | $ | 153,754 | ||||
Net earnings attributable to: | ||||||||||
Limited partner | $ | 130,850 | $ | — | $ | 130,850 | ||||
General partner | 22,904 | — | 22,904 | |||||||
$ | 153,754 | $ | — | $ | 153,754 | |||||
Net earnings per limited partnership unit: | ||||||||||
Basic earnings: | ||||||||||
Income from continuing operations | $ | 0.96 | $ | 0.51 | ||||||
Income from discontinued operations | 1.88 | 2.33 | ||||||||
Basic earnings per LP unit | $ | 2.84 | $ | 2.84 | ||||||
Weighted average limited partnership units outstanding: | 46,098 | 46,098 | ||||||||
Diluted earnings: | ||||||||||
Income from continuing operations | $ | 0.95 | $ | 0.51 | ||||||
Income from discontinued operations | 1.69 | 2.33 | ||||||||
Diluted earnings per LP unit | $ | 2.64 | $ | 2.84 | ||||||
Weighted average LP units and equivalent partnership units outstanding | 51,542 | 46,098 |
(in 000s) | ||||
Purchase of outstanding common stock of Lear at $36.00 per share | $ | 2,857,991 | ||
Less: amount to be allocated to the general partner(1) | (62,691 | ) | ||
Total preliminary purchase price to be allocated | $ | 2,795,300 |
(in 000s) | ||||
Current assets | $ | 3,579,600 | ||
Property, plant & equipment, net | 1,425,900 | |||
Investments | 183,200 | |||
Other non current assets | 347,300 | |||
Goodwill, net | 4,189,500 | |||
Current liabilities | (3,671,000 | ) | ||
Long-term debt | (2,431,800 | ) | ||
Other non current liabilities and minority interests | (827,400 | ) | ||
Total preliminary purchase price allocation | $ | 2,795,300 |
(in 000s) | ||||
Estimated proceeds from borrowings | $ | 2,600,000 | ||
Estimated cash paid for Lear common stock | (2,857,991 | ) | ||
Estimated transaction costs – Lear | (80,100 | ) | ||
Estimated repayment of Lear debt | (1,118,400 | ) | ||
Total adjustments to cash | $ | (1,456,491 | ) |
(in 000s) | |||
Preliminary fair value | $ | 4,189,500 | |
Historical amount | 2,006,600 | ||
Increase | $ | 2,182,900 |
(in 000s) | ||||
Estimated proceeds from borrowings | $ | 2,600,000 | ||
Estimated repayment of Lear debt | (1,118,400 | ) | ||
Increase | $ | 1,481,600 |
(in 000s) | ||||
Estimated gross proceeds from sale of ACEP | $ | 1,300,000 | ||
Add: net working capital | 50,335 | |||
Total proceeds | 1,350,335 | |||
Repayment of long-term debt (including redemption fees) | (263,600 | ) | ||
Net proceeds | 1,086,735 | |||
Estimated transaction costs | (6,757 | ) | ||
Stay bonuses | (5,000 | ) | ||
ACEP’s cash balance included in net working capital | (70,528 | ) | ||
Total adjustments to cash | $ | 1,004,450 |
Year | Percentage | ||
2009 | 103.563 | % | |
2010 | 101.781 | % | |
2011 and thereafter | 100.000 | % |
“— Incurrence of Indebtedness and Issuance of Preferred Stock”; and
“— Incurrence of Indebtedness and Issuance of Preferred Stock; and
“Hedging Obligations” means, with respect to any specified Person, the obligations of such Person under:
“Note Guarantee” means the Guarantee by any Subsidiary of AREP of the Issuers’ obligations under the indenture and the notes, executed pursuant to the provisions of the indenture which initially will only be by AREH.
“Principal Property” of a specified Person means any property, assets or revenue of such Person now owned or hereafter acquired.
“Tax Amount” means, for any period, the combined federal, state and local income taxes, including estimated taxes, that would be payable by AREP if it were a Delaware corporation filing separate tax returns with respect to its Taxable Income for such period and owned 100% of AREH; provided, that in determining the Tax Amount, the effect thereon of any net operating loss carryforwards or other carryforwards or tax attributes, such as alternative minimum tax carryforwards, that would have arisen if AREP were a Delaware corporation shall be taken into account; provided, further that (i) if there is an adjustment in the amount of the Taxable Income for any period, an appropriate positive or negative adjustment shall be made in the Tax Amount, and if the Tax Amount is negative, then the Tax Amount for succeeding periods shall be reduced to take into account such negative amount until such negative amount is reduced to zero and (ii) any Tax Amount other than amounts relating to estimated taxes shall be computed by a nationally recognized accounting firm (but, including in any event, AREP’s auditors). Notwithstanding anything to the contrary, the Tax Amount shall not include taxes resulting from AREP’s change in the status to a corporation for tax purposes.
767 Fifth Avenue, Suite 4700
New York, New York 10153
Attn: Chief Financial Officer
Telephone requests may be directed to (212) 702-4300
American Real Estate Holdings Limited Partnership | ||
American Property Investors, Inc. | ||
Lear Corporation | ||
American Real Estate Holdings Limited Partnership
March 2, 2007
March 11, 2005
ImClone Systems Incorporated:
March 1, 2007
December 31, 2006 and 2005
December 31, | ||||||
2006 | 2005 | |||||
(in $000s) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 1,912,134 | $ | 459,315 | ||
Investments | 539,115 | 720,526 | ||||
Inventories, net | 245,502 | 244,239 | ||||
Trade, notes and other receivables, net | 176,496 | 195,321 | ||||
Other current assets | 134,987 | 214,860 | ||||
Assets held for sale | 47,503 | 1,177,397 | ||||
Total current assets | 3,055,737 | 3,011,658 | ||||
Property, plant and equipment, net: | ||||||
Gaming | 422,715 | 295,432 | ||||
Real Estate | 283,974 | 288,254 | ||||
Home Fashion | 200,382 | 166,026 | ||||
Total property, plant and equipment, net | 907,071 | 749,712 | ||||
Equity investment and other | 177,682 | 98,041 | ||||
Intangible assets | 25,916 | 23,402 | ||||
Other assets | 85,237 | 85,406 | ||||
Total assets | $ | 4,251,643 | 3,968,219 | |||
LIABILITIES AND PARTNERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 69,854 | $ | 57,602 | ||
Accrued expenses and other current liabilities | 197,792 | 143,427 | ||||
Current portion of long-term debt | 23,970 | 18,103 | ||||
Securities sold not yet purchased | 25,398 | 75,883 | ||||
Margin liability on marketable securities | — | 131,061 | ||||
Liabilities of discontinued operations held for sale | — | 489,598 | ||||
Total current liabilities | 317,014 | 915,674 | ||||
Long-term debt | 1,175,271 | 1,100,220 | ||||
Other non-current liabilities | 22,212 | 24,006 | ||||
Total long-term liabilities | 1,197,483 | 1,124,226 | ||||
Total liabilities | 1,514,497 | 2,039,900 | ||||
Minority interests | 292,221 | 304,599 | ||||
Commitments and contingencies (Note 17) | ||||||
Partners’ equity | ||||||
Limited partner | 2,420,476 | 1,607,483 | ||||
General partner | 24,449 | 16,237 | ||||
Partners’ equity | 2,444,925 | 1,623,720 | ||||
Total liabilities and partners’ equity | $ | 4,251,643 | $ | 3,968,219 |
Years Ended December 31, 2006, 2005 and 2004
Years Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(in $000s) | ||||||||||
Revenues: | ||||||||||
Gaming | $ | 385,699 | $ | 327,982 | $ | 299,981 | ||||
Real Estate | 134,575 | 100,299 | 61,557 | |||||||
Home Fashion | 957,656 | 472,681 | — | |||||||
1,477,930 | 900,962 | 361,538 | ||||||||
Expenses: | ||||||||||
Gaming | 326,984 | 260,955 | 251,119 | |||||||
Real Estate | 106,621 | 82,512 | 49,681 | |||||||
Home Fashion | 1,108,293 | 495,110 | — | |||||||
Holding Company | 25,822 | 12,478 | 4,327 | |||||||
Acquisition costs | — | 4,664 | 414 | |||||||
1,567,720 | 855,719 | 305,541 | ||||||||
Operating (loss) income | (89,790 | ) | 45,243 | 55,997 | ||||||
Other income (expense), net: | ||||||||||
Interest expense | (100,514 | ) | (85,418 | ) | (42,209 | ) | ||||
Interest income | 52,656 | 42,791 | 42,145 | |||||||
Other income (expense), net | 99,277 | (12,861 | ) | 24,453 | ||||||
Equity in earnings of affiliate | 12,620 | 1,375 | — | |||||||
(Loss) income from continuing operations before income taxes and minority interests | (25,751 | ) | (8,870 | ) | 80,386 | |||||
Income tax expense | (13,271 | ) | (18,170 | ) | (10,099 | ) | ||||
Minority interests | 68,173 | 10,140 | — | |||||||
Income (loss) from continuing operations | 29,151 | (16,900 | ) | 70,287 | ||||||
Discontinued operations: | ||||||||||
Income (loss) from discontinued operations, net of income taxes | 154,831 | (28,544 | ) | 11,307 | ||||||
Gain on sales of assets, net of income taxes | 676,444 | 21,849 | 75,197 | |||||||
Minority interests | (55,511 | ) | 3,682 | 2,074 | ||||||
Income (loss) from discontinued operations | 775,764 | (3,013 | ) | 88,578 | ||||||
Net earnings (loss) | $ | 804,915 | $ | (19,913 | ) | $ | 158,865 | |||
Net earnings (loss) attributable to: | ||||||||||
Limited partners | $ | 796,866 | $ | (19,714 | ) | $ | 157,276 | |||
General partner | 8,049 | (199 | ) | 1,589 | ||||||
$ | 804,915 | $ | (19,913 | ) | $ | 158,865 |
EQUITY AND COMPREHENSIVE INCOME (LOSS)
Years Ended December 31, 2006, 2005 and 2004
General Partner’s Equity | Limited Partners’ Equity | Total Partners’ Equity | ||||||||
(in $000s) | ||||||||||
Balance, December 31, 2003 | $ | 16,447 | $ | 1,628,268 | $ | 1,644,715 | ||||
Comprehensive income: | ||||||||||
Net earnings | 1,589 | 157,277 | 158,865 | |||||||
Reclassification of unrealized gains on marketable securities sold | (96 | ) | (9,472 | ) | (9,568 | ) | ||||
Net unrealized gains on securities available for sale | 0 | 33 | 33 | |||||||
Comprehensive income | 1,493 | 147,837 | 149,330 | |||||||
Capital distribution from American Casino | (179 | ) | (17,737 | ) | (17,916 | ) | ||||
Capital contribution to American Casino | 228 | 22,572 | 22,800 | |||||||
Arizona Charlies acquisition | (1,259 | ) | (124,641 | ) | (125,900 | ) | ||||
Change in deferred tax asset related to acquisition of Arizona Charlies | 25 | 2,465 | 2,490 | |||||||
Net adjustment for Panaco acquisition | 916 | 90,645 | 91,561 | |||||||
Distribution to general partner | (19 | ) | (1,900 | ) | (1,919 | ) | ||||
Other | (10 | ) | (966 | ) | (976 | ) | ||||
Balance, December 31, 2004 | 17,642 | 1,746,544 | 1,764,185 | |||||||
Comprehensive income: | ||||||||||
Net earnings (loss) | (199 | ) | (19,714 | ) | (19,913 | ) | ||||
Net unrealized gains (loss) on securities available for sale | (42 | ) | (4,155 | ) | (4,197 | ) | ||||
Other comprehensive income (loss) | (1 | ) | (76 | ) | (77 | ) | ||||
Comprehensive loss | (242 | ) | (23,945 | ) | (24,187 | ) | ||||
General partner contribution | 93 | 9,186 | 9,279 | |||||||
AREP Oil & Gas acquisitions | (1,717 | ) | (170,025 | ) | (171,742 | ) | ||||
GBH/Atlantic Coast acquisitions | 582 | 57,667 | 58,249 | |||||||
Change in reporting entity and other | 24 | 2,426 | 2,450 | |||||||
CEO LP unit options | 5 | 487 | 492 | |||||||
Return of capital to GB Holdings, Inc. | (26 | ) | (2,572 | ) | (2,598 | ) | ||||
Partnership distributions | (126 | ) | (12,496 | ) | (12,622 | ) | ||||
Equity in ImClone capital transactions | 2 | 210 | 212 | |||||||
Balance, December 31, 2005 | 16,237 | 1,607,483 | 1,623,720 | |||||||
Comprehensive income: | ||||||||||
Net earnings | 8,049 | 796,866 | 804,915 | |||||||
Net unrealized gains on securities available for sale | 297 | 29,387 | 29,684 | |||||||
Other comprehensive income | 1 | 149 | 150 | |||||||
Comprehensive Income | 8,347 | 826,402 | 834,749 | |||||||
CEO LP unit options | 62 | 6,186 | 6,248 | |||||||
Atlantic Coast bond conversion | 22 | 2,189 | 2,211 | |||||||
Partnership distributions | (252 | ) | (24,993 | ) | (25,245 | ) | ||||
Equity in ImClone capital transactions | 32 | 3,210 | 3,242 | |||||||
Balance, December 31, 2006 | $ | 24,449 | $ | 2,420,476 | $ | 2,444,925 |
Years Ended December 31, 2006, 2005 and 2004
Years Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(in $000s) | ||||||||||
Cash Flows from Operating Activities: | ||||||||||
Cash Flows from Continuing Operations: | ||||||||||
Income (loss) from continuing operations | $ | 29,151 | $ | (16,900 | ) | $ | 70,287 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 70,945 | 48,188 | 28,975 | |||||||
Investment (gains) losses | (91,308 | ) | 21,260 | (16,540 | ) | |||||
Minority interest | (68,173 | ) | (10,140 | ) | — | |||||
Equity in earnings of affiliate | (12,620 | ) | (1,375 | ) | — | |||||
Stock based compensation expense | 6,248 | 492 | — | |||||||
Deferred income tax expense | 2 | 8,364 | 7,507 | |||||||
Impairment loss on fixed assets | 33,701 | — | — | |||||||
Net cash provided by activities on trading securities | 70,636 | 28,560 | — | |||||||
Other, net | (5,927 | ) | (2,571 | ) | (9,690 | ) | ||||
Changes in operating assets and liabilities: | ||||||||||
Decrease (increase) in trade notes and other receivables | 49,710 | 10,671 | (7,921 | ) | ||||||
Decrease (increase) in other assets | 34,118 | (9,684 | ) | (124,004 | ) | |||||
(Increase) decrease in inventory | 8,822 | 17,880 | — | |||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | (7,570 | ) | (51,399 | ) | 89,477 | |||||
Net cash provided by continuing operations | 117,735 | 43,346 | 38,091 | |||||||
Cash Flows from Discontinued Operations: | ||||||||||
Income (loss) from discontinued operations | 775,764 | (3,013 | ) | 88,578 | ||||||
Depreciation, depletion and amortization | 106,936 | 108,496 | 77,458 | |||||||
Change in fair market value of Oil & Gas derivative contracts | (99,707 | ) | 69,254 | 9,179 | ||||||
Impairment loss on GBH | — | 52,366 | 15,600 | |||||||
Net (gain) from sales of businesses and properties | (676,444 | ) | (21,849 | ) | (75,197 | ) | ||||
Other, net | 65,904 | (30,441 | ) | 9,661 | ||||||
Net cash provided by discontinued operations | 172,453 | 174,813 | 125,279 | |||||||
Net cash provided by operating activities | 290,188 | 218,159 | 163,370 | |||||||
Cash Flows from Investing Activities: | ||||||||||
Cash Flows from Continuing Operations: | ||||||||||
Capital expenditures | (61,338 | ) | (36,380 | ) | (109,532 | ) | ||||
Purchases of marketable equity and debt securities | (243,162 | ) | (764,271 | ) | (283,615 | ) | ||||
Proceeds from sales of marketable equity and debt securities | 566,575 | 190,287 | 93,556 | |||||||
Net proceeds from the sale and disposition of real estate | — | 8,414 | 43,590 | |||||||
Net proceeds from the sale and disposition of fixed assets | 21,867 | — | — | |||||||
Purchase of debt securities of affiliates | — | — | (101,500 | ) | ||||||
Acquisitions of businesses, net of cash acquired | (208,645 | ) | (293,649 | ) | (125,900 | ) | ||||
Other, net | — | 9,586 | 50,848 | |||||||
Net cash provided by (used in) investing activities – continuing operations | 75,297 | (886,013 | ) | (432,553 | ) | |||||
Cash Flows from Discontinued Operations: | ||||||||||
Capital expenditures | (306,696 | ) | (326,309 | ) | (132,220 | ) | ||||
Net proceeds from the sales and disposition of assets | 1,308,713 | 54,752 | 202,344 | |||||||
Other, net | (18,427 | ) | 4,704 | 21,090 | ||||||
Net cash provided by (used in) investing activities – discontinued operations | 983,590 | (266,853 | ) | 91,214 | ||||||
Net cash provided by (used in) investing activities | 1,058,887 | (1,152,866 | ) | (341,339 | ) |
Years Ended December 31, 2006, 2005 and 2004
Years Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(in $000s) | ||||||||||
Cash Flows from Financing Activities: | ||||||||||
Cash Flows from Continuing Operations: | ||||||||||
Partners’ equity: | ||||||||||
Members contribution | $ | — | $ | 9,279 | $ | 22,800 | ||||
Partnership distributions | (25,245 | ) | (12,622 | ) | (17,916 | ) | ||||
Debt: | ||||||||||
Proceeds from issuance of senior notes payable | — | 474,000 | 557,594 | |||||||
Proceeds from credit facilities | 60,000 | — | ||||||||
Repayment of credit facilities | (21,034 | ) | — | — | ||||||
Net change in due to/from affiliates | 674 | 21,636 | (16,468 | ) | ||||||
Proceeds from mortgages payable | 34,250 | 4,425 | 10,000 | |||||||
Mortgages paid upon disposition of properties | — | (3,777 | ) | (26,800 | ) | |||||
Periodic principal payments | (6,473 | ) | (3,941 | ) | (5,248 | ) | ||||
Debt issuance costs | (8,257 | ) | (8,952 | ) | (18,111 | ) | ||||
Other, net | — | 4,258 | (3 | ) | ||||||
Net cash provided by financing activities – continuing operations | 33,915 | 484,306 | 505,848 | |||||||
Cash Flows from Discontinued Operations: | ||||||||||
Net cash (used in) provided by financing activities – discontinued operations | (24,276 | ) | 219,568 | (74,797 | ) | |||||
Net cash provided by financing activities | 9,639 | 703,874 | 431,051 | |||||||
Net increase (decrease) in cash and cash equivalents | 1,358,714 | (230,833 | ) | 253,082 | ||||||
Net change in cash of assets held for sale | 94,104 | (72,432 | ) | 22,125 | ||||||
Cash and cash equivalents, beginning of period | 459,316 | 762,581 | 487,374 | |||||||
Cash and cash equivalents, end of period | $ | 1,912,134 | $ | 459,316 | $ | 762,581 | ||||
Supplemental information | ||||||||||
Cash payments for interest, net of amounts capitalized | $ | 106,635 | $ | 77,745 | $ | 60,472 | ||||
Cash payments for income taxes, net of refunds | $ | 15,439 | $ | 10,194 | $ | 2,912 | ||||
Conversion of bonds in connection with acquisition of WPI | $ | — | $ | 205,850 | $ | — | ||||
Net unrealized gains (losses) on securities available for sale | $ | 29,684 | $ | (4,197 | ) | $ | 33 | |||
LP unit issuance | $ | — | $ | 456,998 | $ | — | ||||
Change in tax asset related to acquisitions | $ | — | $ | 7,329 | $ | 2,490 | ||||
Debt conversion relating to Atlantic Coast | $ | 2,211 | $ | 29,500 | $ | — | ||||
Equity received in consideration for sale of oil and gas operations | $ | 231,156 | $ | — | $ | — |
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
(2) the valuation of long-lived assets, mortgages and notes receivable, marketable equity and debt securities and other investments, (3) costs to complete for land, house and condominium developments, (4) gaming-related liability and promotional programs, (5) deferred tax assets, (6) oil and gas reserve estimates, (7) asset retirement obligations and (8) fair value of derivatives. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements.
December 31, 2006, 2005 and 2004
December 31, | ||||||
2006 | 2005 | |||||
Raw materials and supplies | $ | 32,059 | $ | 33,083 | ||
Goods in process | 83,592 | 100,337 | ||||
Finished goods | 129,851 | 110,819 | ||||
$ | 245,502 | $ | 244,239 |
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, | ||||||
2006 | 2005 | |||||
Current assets | $ | 85,583 | $ | 130,625 | ||
Property, plant and equipment, net | 422,715 | 295,432 | ||||
Other assets | 44,455 | 43,719 | ||||
Total assets | $ | 552,753 | $ | 469,776 | ||
Current liabilities | $ | 54,763 | $ | 37,890 | ||
Long term debt | 257,329 | 217,335 | ||||
Other liabilities | 5,993 | 10,327 | ||||
Total liabilities | $ | 318,085 | $ | 265,552 |
December 31, 2006, 2005 and 2004
December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Revenues: | |||||||||
Casino | $ | 220,814 | $ | 182,938 | $ | 167,972 | |||
Hotel | 75,587 | 61,862 | 54,653 | ||||||
Food and beverage | 83,667 | 70,060 | 66,953 | ||||||
Tower, retail and other income | 35,912 | 35,413 | 33,778 | ||||||
Gross Revenues | 415,980 | 350,273 | 323,356 | ||||||
Less promotional allowances | 30,281 | 22,291 | 23,375 | ||||||
Net revenues | 385,699 | 327,982 | 299,981 | ||||||
Expenses: | |||||||||
Casino | 80,060 | 63,216 | 61,985 | ||||||
Hotel | 33,419 | 26,957 | 24,272 | ||||||
Food and beverage | 60,052 | 51,784 | 48,495 | ||||||
Tower, retail and other | 16,856 | 15,372 | 14,035 | ||||||
Selling, general and administrative | 108,977 | 81,321 | 78,816 | ||||||
Depreciation and amortization | 27,620 | 22,305 | 23,516 | ||||||
Total costs and expenses | 326,984 | 260,955 | 251,119 | ||||||
Operating income | $ | 58,715 | $ | 67,027 | $ | 48,862 |
December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Revenues: | |||||||||
Rental real estate: | |||||||||
Interest income on financing leases | $ | 6,736 | $ | 7,299 | $ | 9,880 | |||
Rental income | 8,177 | 7,083 | 6,686 | ||||||
Property development | 90,955 | 58,270 | 27,073 | ||||||
Resort operations | 28,707 | 27,647 | 17,918 | ||||||
Total revenues | 134,575 | 100,299 | 61,557 | ||||||
Operating expenses: | |||||||||
Rental real estate | 5,015 | 4,588 | 8,171 | ||||||
Property development | 73,041 | 48,679 | 22,949 | ||||||
Resort operations | 28,565 | 29,245 | 18,561 | ||||||
Total expenses | 106,621 | 82,512 | 49,681 | ||||||
Operating income | $ | 27,954 | $ | 17,787 | $ | 11,876 |
December 31, 2006, 2005 and 2004
December 31, | ||||||
2006 | 2005 | |||||
Rental Properties: | ||||||
Finance leases, net | $ | 66,335 | $ | 73,292 | ||
Operating leases | 46,170 | 52,572 | ||||
Property development | 126,537 | 116,007 | ||||
Resort properties | 44,932 | 46,383 | ||||
Total real estate | $ | 283,974 | $ | 288,254 |
December 31, | ||||||
2006 | 2005 | |||||
Minimum lease payments receivable | $ | 69,366 | $ | 79,849 | ||
Unguaranteed residual value | 39,843 | 43,429 | ||||
109,209 | 123,278 | |||||
Less unearned income | 39,341 | 46,239 | ||||
69,868 | 77,039 | |||||
Less current portion of lease amortization | 3,533 | 3,747 | ||||
$ | 66,335 | $ | 73,292 |
December 31, 2006, 2005 and 2004
2007 | $ | 9,570 | |
2008 | 8,214 | ||
2009 | 7,993 | ||
2010 | 5,067 | ||
2011 | 4,973 | ||
Thereafter | 33,549 | ||
$ | 69,366 |
December 31, | ||||||
2006 | 2005 | |||||
Land | $ | 8,605 | $ | 12,449 | ||
Commercial Buildings | 52,246 | 58,816 | ||||
60,851 | 71,265 | |||||
Less accumulated depreciation | 14,681 | 18,693 | ||||
$ | 46,170 | $ | 52,572 |
2007 | $ | 11,963 | |
2008 | 11,637 | ||
2009 | 10,606 | ||
2010 | 9,532 | ||
2011 | 8,468 | ||
Thereafter | 24,635 | ||
$ | 76,841 |
December 31, 2006, 2005 and 2004
December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Properties sold | 18 | 14 | 57 | ||||||
Proceeds received | $ | 25,340 | $ | 52,525 | $ | 254,424 | |||
Mortgage debt repaid | $ | — | $ | 10,702 | $ | 93,845 | |||
Total gain recorded | $ | 12,776 | $ | 16,315 | $ | 80,459 | |||
Gain recorded in continuing operations | $ | — | $ | 176 | $ | 5,262 | |||
Gain recorded in discontinued operations(1) | $ | 12,776 | $ | 16,139 | 75,197 |
December 31, | ||||||
2006 | 2005 | |||||
Leased to others | $ | 28,668 | $ | 29,230 | ||
Vacant | 50 | 1,049 | ||||
28,718 | 30,279 | |||||
Less accumulated depreciation | 5,053 | 3,046 | ||||
$ | 23,665 | $ | 27,233 |
December 31, 2006, 2005 and 2004
December 31, 2006 | December 31, 2005 | |||||
Current assets | $ | 567,419 | $ | 560,853 | ||
Assets held for sale | 23,838 | 22,643 | ||||
Property, plant and equipment, net | 200,382 | 166,026 | ||||
Other assets | 38,199 | 23,402 | ||||
Total assets | $ | 829,838 | $ | 772,924 | ||
Current liabilities | $ | 101,609 | $ | 103,931 | ||
Other liabilities | 8,980 | 5,214 | ||||
Total liabilities | $ | 110,589 | $ | 109,145 |
Year Ended December 31, 2006 | Period August 8, 2005 to December 31, 2005 | ||||||
Revenues | $ | 957,656 | $ | 472,681 | |||
Costs and expenses: | |||||||
Cost of sales | 901,735 | 421,408 | |||||
Selling, general and administrative | 160,911 | 72,044 | |||||
Restructuring and impairment charges | 45,647 | 1,658 | |||||
Total costs and expenses | 1,108,293 | 495,110 | |||||
Operating loss | $ | (150,637 | ) | $ | (22,429 | ) |
December 31, 2006, 2005 and 2004
May 19, 2006 Fair Value | ||||||||||
Aquarius | Traymore Site | Total | ||||||||
Current assets | $ | 7,172 | $ | — | $ | 7,172 | ||||
Land | 13,000 | 61,651 | 74,651 | |||||||
Building and equipment | 95,336 | — | 95,336 | |||||||
Intangible assets | 2,939 | — | 2,939 | |||||||
Assets acquired | 118,447 | 61,651 | 180,098 | |||||||
Liabilities assumed | (4,874 | ) | — | (4,874 | ) | |||||
Net assets acquired | $ | 113,573 | $ | 61,651 | $ | 175,224 |
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
Book value of first and second lien debt | $ | 205,850 | |
Cash purchases of additional equity | 187,000 | ||
Exercise of rights | 32,881 | ||
Transaction costs | 2,070 | ||
$ | 427,801 |
August 8, 2005 Fair Value | Excess Fair Value Over Cost | Basis August 8, 2005 | ||||||||
Current assets | $ | 588,000 | $ | — | $ | 588,000 | ||||
Property and equipment | 294,360 | (98,399 | ) | 195,961 | ||||||
Intangible assets | 35,700 | (12,298 | ) | 23,402 | ||||||
Assets acquired | 918,060 | (110,697 | ) | 807,363 | ||||||
Current liabilities | 111,363 | — | 111,363 | |||||||
Other liabilities | 11,044 | — | 11,044 | |||||||
Liabilities assumed | 122,407 | — | 122,407 | |||||||
Net assets acquired | $ | 795,653 | $ | (110,697 | ) | $ | 684,956 | |||
Minority interest at acquisition | (257,155 | ) | ||||||||
$ | 427,801 |
Twelve Months Ended December 31, 2005 | |||||||||||||
AREH | WPI | Pro Forma Adjustments | Total | ||||||||||
(January 1, 2005 to August 7, 2005) | |||||||||||||
(In $000s) | |||||||||||||
Revenues | $ | 900,962 | $ | 728,362 | $ | — | $ | 1,629,324 | |||||
(Loss) income from continuing operations | $ | (16,900 | ) | $ | (157,935 | ) | $ | 98,487 | $ | (76,348 | ) |
December 31, 2006, 2005 and 2004
Twelve Months Ended December 31, 2004 | |||||||||||||
AREH | WPI | Pro Forma Adjustments | Total | ||||||||||
(In $000s) | |||||||||||||
Revenues | $ | 361,538 | $ | 1,618,684 | $ | — | $ | 1,980,222 | |||||
Income (loss) income from continuing operations | $ | 70,287 | $ | (183,275 | ) | $ | 178,954 | $ | 65,966 |
December 31, 2006, 2005 and 2004
December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Revenues: | ||||||||||
Oil and gas | $ | 353,539 | $ | 198,854 | $ | 137,988 | ||||
Atlantic City gaming | 138,378 | 162,339 | 170,855 | |||||||
Real estate | 5,143 | 6,940 | 20,757 | |||||||
Total revenues | $ | 497,060 | $ | 368,133 | $ | 329,600 | ||||
Net operating income (loss): | ||||||||||
Oil and gas | $ | 183,281 | $ | 37,521 | $ | 33,053 | ||||
Atlantic City Gaming | (13,091 | ) | (6,848 | ) | 2,373 | |||||
Real estate | 4,144 | 4,179 | 11,294 | |||||||
Total operating income | 174,334 | 34,852 | 46,720 | |||||||
Interest expense | (26,266 | ) | (14,005 | ) | (18,303 | ) | ||||
Interest and other income | 11,004 | 5,897 | 6,703 | |||||||
Impairment loss on GBH bankruptcy | — | (52,366 | ) | (15,600 | ) | |||||
Income (loss) from discontinued operation before income taxes and minority interest | 159,072 | (25,622 | ) | 19,520 | ||||||
Income tax (expense) benefit | (4,241 | ) | (2,922 | ) | (8,213 | ) | ||||
Income (loss) from discontinued operations | 154,831 | (28,544 | ) | 11,307 | ||||||
Gain on sales of discontinued operations, net of income tax expense of $22,637 in 2006 | 676,444 | 21,849 | 75,197 | |||||||
Minority interests | (55,511 | ) | 3,682 | 2,074 | ||||||
$ | 775,764 | $ | (3,013 | ) | $ | 88,578 |
Years Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Realized loss (net cash payments) | $ | (25,948 | ) | $ | (51,263 | ) | $ | (16,625 | ) | |
Unrealized gain (loss) | 99,707 | (69,254 | ) | (9,179 | ) | |||||
$ | 73,759 | $ | (120,517 | ) | $ | (25,804 | ) |
December 31, 2006, 2005 and 2004
December 31, | ||||||
2006 | 2005 | |||||
Cash and cash equivalents | $ | — | $ | 116,032 | ||
Trade, notes and other receivables | — | 57,133 | ||||
Other current assets | 47,503 | 73,125 | ||||
Property, plant and equipment | — | 888,086 | ||||
Other assets | — | 43,021 | ||||
Assets held for sale | $ | 47,503 | $ | 1,177,397 | ||
Accounts payable and accrued expenses | $ | — | 118,468 | |||
Long-term debt | — | 306,052 | ||||
Other non-current liabilities | — | 65,078 | ||||
Liabilities of discontinued operations held for sale | $ | — | $ | 489,598 |
December 31, 2005 | |||
Proved properties | $ | 1,229,923 | |
Other property and equipment | 6,029 | ||
Total | 1,235,952 | ||
Less: Accumulated depreciation, depletion and amortization | 493,493 | ||
$ | 742,459 |
December 31, 2006, 2005 and 2004
January 1 – November 21, | Years Ended December 31, | ||||||||
2006 | 2005 | 2004 | |||||||
Acquisitions | $ | 14,113 | $ | 114,244 | $ | 128,673 | |||
Exploration costs | 83,463 | 75,357 | 62,209 | ||||||
Development costs | 133,459 | 124,305 | 52,765 | ||||||
Total | $ | 231,035 | $ | 313,906 | $ | 243,647 | |||
Depletion rate per Mcfe | $ | 2.10 | $ | 2.33 | $ | 2.11 |
December 31, 2006, 2005 and 2004
Crude Oil | Natural Gas | ||||
(Barrels) | (Thousand cubic feet) | ||||
December 31, 2003 | 8,165,562 | 206,259,821 | |||
Reserves of National Offshore purchased from affiliate of general partner | 5,203,599 | 25,981,749 | |||
Sales of reserves in place | (15,643 | ) | (344,271 | ||
Extensions and discoveries | 524,089 | 50,226,279 | |||
Revisions of previous estimates | 204,272 | 9,810,665 | |||
Production | (1,484,005 | ) | (18,895,077 | ) | |
December 31, 2004 | 12,597,874 | 273,039,166 | |||
Purchase of reserves in place | 483,108 | 94,937,034 | |||
Sales of reserves in place | (624,507 | ) | (7,426,216 | ) | |
Extensions and discoveries | 743,019 | 79,591,588 | |||
Revisions of previous estimates | 494,606 | 17,015,533 | |||
Production | (1,789,961 | ) | (28,106,819 | ) | |
December 31, 2005 | 11,904,139 | 429,050,286 | |||
Purchase of reserves in place | 282,267 | 9,597,085 | |||
Extensions and discoveries | 2,169,222 | 73,753,558 | |||
Revisions of previous estimates | (201,907 | (58,470,950 | ) | ||
Production | (1,655,516 | ) | (31,094,079 | ) | |
Sale of properties to SandRidge | (12,498,206 | ) | (422,835,900 | ) | |
November 21, 2006 | — | — | |||
Proved developed reserves: | |||||
December 31, 2004 | 8,955,300 | 151,765,372 | |||
December 31, 2005 | 8,340,077 | 200,519,972 |
December 31, 2006, 2005 and 2004
January 1 – November 21, 2006 | Year Ended December 31, 2005 | ||||||
Beginning of year | $ | 41,228 | $ | 56,524 | |||
Add: Accretion | 2,537 | 3,019 | |||||
Drilling additions/Purchases | 4,269 | 2,067 | |||||
Less: Revisions | — | (2,813 | ) | ||||
Settlements | — | (431 | ) | ||||
Dispositions | (48,034 | ) | (17,138 | ) | |||
End of period | $ | — | $ | 41,228 |
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006 | December 31, 2005 | |||||||||||
Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | |||||||||
Current Investments: | ||||||||||||
Trading | ||||||||||||
Marketable equity and debt securities | $ | — | $ | — | $ | 33,301 | $ | 39,232 | ||||
Other investments | — | 20,538 | — | — | ||||||||
Total current trading | — | 20,538 | 33,301 | 39,232 | ||||||||
Available for Sale | ||||||||||||
U.S. Government and agency obligations | — | — | 3,346 | 3,346 | ||||||||
Marketable equity and debt securities | 242,080 | 265,411 | 650,986 | 646,666 | ||||||||
Other securities | 251,131 | 253,166 | 31,282 | 31,282 | ||||||||
Total current available for sale | 493,211 | 518,577 | 685,614 | 681,294 | ||||||||
Total current investments | $ | 493,211 | $ | 539,115 | $ | 718,915 | $ | 720,526 |
December 31, 2006, 2005 and 2004
Nine Months Ended September 30, 2006 | Year Ended December 31, 2005 | |||||
Condensed Income Statement Information: | ||||||
Net Sales | $ | 545,684 | $ | 383,673 | ||
Operating Income | $ | 240,196 | $ | 66,779 | ||
Net Income | $ | 324,116 | $ | 86,496 | ||
Condensed Balance Sheet Information: | ||||||
Current Assets | $ | 1,187,060 | $ | 909,118 | ||
Non-Current Assets | 597,728 | 434,297 | ||||
Total Assets | $ | 1,784,788 | $ | 1,343,415 | ||
Current Liabilities | $ | 237,304 | $ | 242,119 | ||
Non-Current Liabilities | 874,900 | 848,892 | ||||
Equity | 672,584 | 252,404 | ||||
Total Liabilities and Equity | $ | 1,784,788 | $ | 1,343,415 |
December 31, 2006, 2005 and 2004
December 31, | |||||||
2006 | 2005 | ||||||
Trade receivables – Home Fashion | $ | 134,111 | $ | 173,050 | |||
Allowance for doubtful accounts – Home Fashion | (8,303 | ) | (8,313 | ) | |||
Other | 50,688 | 30,584 | |||||
$ | 176,496 | $ | 195,321 |
December 31, | ||||||
2006 | 2005 | |||||
Restricted cash | $ | 87,428 | $ | 161,210 | ||
Other | 47,559 | 53,650 | ||||
$ | 134,987 | $ | 214,860 |
December 31, | |||||||
2006 | 2005 | ||||||
Land | $ | 129,729 | $ | 122,586 | |||
Buildings and improvements | 446,878 | 324,917 | |||||
Machinery, equipment and furniture | 333,741 | 255,807 | |||||
Assets leased to others | 123,398 | 141,997 | |||||
Construction in progress | 90,672 | 69,669 | |||||
1,124,418 | 914,976 | ||||||
Less accumulated depreciation and amortization | (217,347 | ) | (165,264 | ) | |||
$ | 907,071 | $ | 749,712 |
December 31, 2006, 2005 and 2004
December 31, | ||||||
2006 | 2005 | |||||
Deferred income taxes | $ | 48,976 | $ | 51,509 | ||
Deferred finance costs, net of accumulated amortization of $4,827 and $0 as of December 31, 2006 and 2005, respectively | 11,684 | 6,544 | ||||
Other | 24,577 | 27,353 | ||||
$ | 85,237 | $ | 85,406 |
December 31, | ||||||
2006 | 2005 | |||||
WPI | $ | 178,843 | $ | 247,015 | ||
Atlantic Coast | 70,563 | 57,584 | ||||
NEGI | 42,815 | — | ||||
$ | 292,221 | $ | 304,599 |
December 31, | |||||||
2006 | 2005 | ||||||
Senior unsecured 7.125% notes due 2013 – AREP | $ | 475,500 | $ | 474,750 | |||
Senior unsecured 8.125% notes due 2012 – AREP, net of discount | 346,027 | 344,726 | |||||
Senior secured 7.85% notes due 2012 – ACEP | 215,000 | 215,000 | |||||
Borrowings under credit facilities – ACEP | 40,000 | — | |||||
Borrowings under credit facilities – NEG Oil & Gas | — | 300,000 | |||||
Mortgages payable | 109,289 | 81,512 | |||||
Other | 13,425 | 8,387 | |||||
Total long-term debt | 1,199,241 | 1,424,375 | |||||
Less: current portion, including debt related to assets held for sale | (23,970 | ) | (324,155 | ) | |||
$ | 1,175,271 | $ | 1,100,220 |
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, | |||||||
2006 | 2005 | ||||||
Total mortgages | $ | 109,289 | $ | 81,512 | |||
Less current portion and mortgages on properties held for sale | (18,174 | ) | (18,104 | ) | |||
$ | 91,115 | $ | 63,408 |
December 31, 2006, 2005 and 2004
2007 | $ | 23,970 | |
2008 | 29,227 | ||
2009 | 6,670 | ||
2010 | 1,684 | ||
2011 | 31,446 | ||
2012 – 2017 | 1,115,963 | ||
$ | 1,208,960 |
December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Net realized gains on sales of marketable securities | $ | 69,099 | $ | 10,120 | $ | 40,159 | ||||
Unrealized gains (losses) on marketable securities | 21,288 | 9,856 | (4,812 | ) | ||||||
Net realized losses on securities sold short | (17,146 | ) | (37,058 | ) | — | |||||
Unrealized gains (losses) on securities sold short | 18,067 | (4,178 | ) | (18,807 | ) | |||||
Gain on sale assets | 3,372 | 201 | 5,262 | |||||||
Other | 4,597 | 8,198 | 2,651 | |||||||
$ | 99,277 | $ | (12,861 | ) | $ | 24,453 |
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Revenues: | ||||||||||
Gaming | $ | 385,699 | $ | 327,982 | $ | 299,981 | ||||
Real estate | ||||||||||
Property development | 90,955 | 58,270 | 27,073 | |||||||
Rental real estate | 14,913 | 14,382 | 16,566 | |||||||
Resort operations | 28,707 | 27,647 | 17,918 | |||||||
Total real estate | 134,575 | 100,299 | 61,557 | |||||||
Home Fashion | 957,656 | 472,681 | — | |||||||
Total revenues | $ | 1,477,930 | $ | 900,962 | $ | 361,538 | ||||
Net segment operating income: | ||||||||||
Gaming | $ | 58,715 | $ | 67,027 | $ | 48,862 | ||||
Real estate | ||||||||||
Property development | 17,914 | 9,591 | 4,124 | |||||||
Rental real estate | 9,898 | 9,794 | 8,395 | |||||||
Resort operations | 142 | (1,598 | ) | (643 | ) | |||||
Total real estate | 27,954 | 17,787 | 11,876 | |||||||
Home Fashion | (150,637 | ) | (22,429 | ) | — | |||||
Total segment earnings (loss) | (63,968 | ) | 62,385 | 60,738 | ||||||
Holding Company costs(i) | (25,822 | ) | (17,142 | ) | (4,741 | ) | ||||
Total operating income (loss) | (89,790 | ) | 45,243 | 55,997 | ||||||
Interest expense | (100,514 | ) | (85,418 | ) | (42,209 | ) | ||||
Interest income | 52,656 | 42,791 | 42,145 | |||||||
Other income (expense) | 99,277 | (12,861 | ) | 24,453 | ||||||
Equity on earnings of affiliate | 12,620 | 1,375 | — | |||||||
Income tax expense | (13,271 | ) | (18,170 | ) | (10,099 | ) | ||||
Minority Interest | 68,173 | 10,140 | — | |||||||
Income (loss) from continuing operations | $ | 29,151 | $ | (16,900 | ) | $ | 70,287 |
December 31, | ||||||
2006 | 2005 | |||||
Assets | ||||||
Gaming | $ | 552,753 | $ | 469,776 | ||
Real estate | 382,220 | 415,361 | ||||
Home Fashion | 806,000 | 750,281 | ||||
Subtotal | 1,740,973 | 1,635,418 | ||||
Assets held for sale | 47,503 | 1,177,398 | ||||
Reconciling items(ii) | 2,463,167 | 1,155,403 | ||||
Total assets | $ | 4,251,643 | $ | 3,968,219 |
December 31, 2006, 2005 and 2004
December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Depreciation and amortization (D&A): | |||||||||
Gaming | $ | 27,620 | $ | 22,305 | $ | 23,516 | |||
Real estate: | |||||||||
Rental real estate | 2,010 | 1,944 | 2,281 | ||||||
Property Development | 374 | — | — | ||||||
Resort operations | 3,666 | 3,158 | 2,989 | ||||||
Total real estate | 6,050 | 5,102 | 5,270 | ||||||
Home Fashion | 31,584 | 19,406 | — | ||||||
D&A in operating expenses | 65,254 | 46,813 | 28,786 | ||||||
Amortization in interest expense | 5,691 | 1,375 | 189 | ||||||
$ | 70,945 | $ | 48,188 | $ | 28,975 | ||||
Capital expenditures: | |||||||||
Gaming | $ | 46,852 | $ | 28,219 | $ | 14,009 | |||
Rental real estate | 1,262 | 187 | 11,783 | ||||||
Property Development | — | — | 67,843 | ||||||
Resort operations | 2,115 | 2,256 | 15,897 | ||||||
Home Fashion | 11,109 | 5,718 | — | ||||||
$ | 61,338 | $ | 36,380 | $ | 109,532 |
December 31, | |||||||
2006 | 2005 | ||||||
Book basis of AREH net assets excluding corporate entities | $ | 1,954,251 | $ | 2,156,608 | |||
Book/tax basis difference | (15,084 | ) | (559,043 | ) | |||
Tax basis of net assets | $ | 1,939,167 | $ | 1,597,565 |
December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Continuing Operations: | ||||||||||
Current | $ | (13,269 | ) | $ | (8,323 | ) | $ | (2,670 | ) | |
Deferred | (2 | ) | (9,847 | ) | (7,429 | ) | ||||
$ | (13,271 | ) | $ | (18,170 | ) | $ | (10,099 | ) | ||
Discontinued Operations: | ||||||||||
Current | $ | (28,589 | ) | $ | (2,639 | ) | $ | (1,346 | ) | |
Deferred | 1,711 | (283 | ) | (6,867 | ) | |||||
$ | (26,878 | ) | $ | (2,922 | ) | $ | (8,213 | ) |
December 31, 2006, 2005 and 2004
December 31, | |||||||
2006 | 2005 | ||||||
Deferred tax assets: | |||||||
Property, plant and equipment | $ | 63,308 | $ | 26,219 | |||
Net operating loss | 70,504 | 54,583 | |||||
Other | 17,507 | 21,802 | |||||
151,319 | 102,604 | ||||||
Valuation allowance | (95,754 | ) | (48,788 | ) | |||
Net deferred tax assets | $ | 55,565 | $ | 53,816 | |||
Less: Current portion | (6,589 | ) | (2,307 | ) | |||
Deferred tax asset – Non-current | $ | 48,976 | $ | 51,509 |
2006 | 2005 | 2004 | |||||
Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |
Valuation allowance | (104.1 | ) | (110.9 | ) | (2.3 | ) | |
Income not subject to taxation | 15.4 | (137.6 | ) | (22.0 | ) | ||
Other | 2.1 | 8.6 | 1.9 | ||||
(51.6 | )% | (204.9 | )% | 12.6 | % |
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
December 31, 2006, 2005 and 2004
Operating Leases | Capital Leases | |||||
2007 | $ | 18,872 | $ | 660 | ||
2008 | 16,121 | 660 | ||||
2009 | 13,102 | 963 | ||||
2010 | 9,921 | 85 | ||||
2011 | 6,928 | 85 | ||||
Thereafter | 31,974 | 7,233 | ||||
Total minimum lease payments | $ | 96,918 | 9,686 | |||
Less imputed interest costs | 6,860 | |||||
Present value of net minimum capital lease payments | $ | 2,826 |
December 31, 2006, 2005 and 2004
Carrying Value | Fair Value | |||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||
Investments | $ | 716,797 | $ | 818,567 | $ | 674,613 | $ | 834,413 | ||||
Long-term debt | 1,175,271 | 1,100,220 | 1,180,083 | 1,125,377 |
December 31, 2006, 2005 and 2004
(in $000s)
March 31, 2007 | December 31, 2006 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,331,421 | $ | 1,912,134 | |||
Investments | 563,552 | 539,115 | |||||
Inventories, net | 235,358 | 245,502 | |||||
Trade, notes and other receivables, net | 169,841 | 176,496 | |||||
Other current assets | 76,389 | 134,987 | |||||
Assets of discontinued operations held for sale | 48,205 | 47,503 | |||||
Total current assets | 3,424,766 | 3,055,737 | |||||
Property, plant and equipment, net: | |||||||
Gaming | 417,978 | 422,715 | |||||
Real Estate | 273,852 | 283,974 | |||||
Home Fashion | 206,764 | 200,382 | |||||
Total property, plant and equipment, net | 898,594 | 907,071 | |||||
Investments | 199,693 | 177,682 | |||||
Intangible assets | 25,772 | 25,916 | |||||
Other assets | 81,314 | 85,237 | |||||
Total assets | $ | 4,630,139 | $ | 4,251,643 | |||
LIABILITIES AND PARTNERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 66,497 | $ | 69,854 | |||
Accrued expenses and other current liabilities | 160,062 | 197,792 | |||||
Current portion of long-term debt | 23,620 | 23,970 | |||||
Securities sold not yet purchased | 8,682 | 25,398 | |||||
Total current liabilities | 258,861 | 317,014 | |||||
Long-term debt | 1,666,211 | 1,175,271 | |||||
Other non current liabilities | 23,738 | 22,212 | |||||
Total long-term liabilities | 1,689,949 | 1,197,483 | |||||
Total liabilities | 1,948,810 | 1,514,497 | |||||
Minority interests | 198,019 | 292,221 | |||||
Commitments and contingencies (Note 16) | |||||||
Partners’ equity: | |||||||
Limited partners | 2,458,477 | 2,420,476 | |||||
General partner | 24,833 | 24,449 | |||||
Partners’ equity | 2,483,310 | 2,444,925 | |||||
Total liabilities and partners’ equity | $ | 4,630,139 | $ | 4,251,643 |
Three Months Ended March 31, 2007 and 2006
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
(unaudited) (in $000s) | |||||||
Revenues: | |||||||
Gaming | $ | 112,888 | $ | 85,945 | |||
Real Estate | 27,887 | 20,712 | |||||
Home Fashion | 210,604 | 243,490 | |||||
351,379 | 350,147 | ||||||
Expenses: | |||||||
Gaming | 89,661 | 67,322 | |||||
Real Estate | 23,606 | 17,238 | |||||
Home Fashion | 249,619 | 281,448 | |||||
General and administrative expenses | 7,668 | 11,145 | |||||
370,554 | 377,153 | ||||||
Operating loss | (19,175 | ) | (27,006 | ) | |||
Other income (expense), net: | |||||||
Interest expense | (31,432 | ) | (23,692 | ) | |||
Interest income | 31,458 | 11,554 | |||||
Other income (expense), net | 84,781 | 21,309 | |||||
Equity in earnings of affiliate | — | 24 | |||||
Income (loss) from continuing operations before income taxes and minority interests | 65,632 | (17,811 | ) | ||||
Income tax expense | (6,949 | ) | (5,211 | ) | |||
Minority interests | 11,590 | 15,069 | |||||
Income (loss) from continuing operations | 70,273 | (7,953 | ) | ||||
Discontinued operations: | |||||||
Income from discontinued operations, net of income taxes | 16,470 | 58,841 | |||||
Minority interest | (1,794 | ) | 54 | ||||
Gain on sales of assets, net of income taxes | 13,185 | 251 | |||||
Income from discontinued operations, net of income taxes | 27,861 | 59,146 | |||||
Net earnings | $ | 98,134 | $ | 51,193 | |||
Net earnings attributable to: | |||||||
Limited partners | $ | 97,153 | $ | 50,681 | |||
General partner | 981 | 512 | |||||
$ | 98,134 | $ | 51,193 |
IN PARTNERS’ EQUITY AND COMPREHENSIVE INCOME
Three Months Ended March 31, 2007
(Unaudited) (In $000s)
General Partner’s Equity (Deficit) | Limited Partners’ Equity Depositary Units | Total Partners’ Equity | |||||||||
Balance, December 31, 2006 | $ | 24,449 | $ | 2,420,476 | $ | 2,444,925 | |||||
Cumulative effect of adjustment from adoption of SFAS No. 159 | (422 | ) | (41,762 | ) | (42,184 | ) | |||||
Comprehensive income: | |||||||||||
Net earnings | 981 | 97,153 | 98,134 | ||||||||
Net unrealized losses on securities available for sale | (114 | ) | (11,315 | ) | (11,429 | ) | |||||
Comprehensive income | 867 | 85,838 | 86,705 | ||||||||
Partnership distribution | (63 | ) | (6,248 | ) | (6,311 | ) | |||||
Other | 2 | 173 | 175 | ||||||||
Balance, March 31, 2007 | $ | 24,833 | $ | 2,458,477 | $ | 2,483,310 |
Three Months Ended March 31, 2007 and 2006
2007 | 2006 | ||||||
(unaudited) (in $000s) | |||||||
Cash Flows from Operating Activities: | |||||||
Cash Flows from Continuing Operations: | |||||||
Income (loss) from continuing operations | $ | 70,273 | $ | (7,953 | ) | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 16,166 | 18,355 | |||||
Investment gains | (79,410 | ) | (13,750 | ) | |||
Minority interests | (11,590 | ) | (15,069 | ) | |||
Equity in earnings of affiliate | — | (24 | ) | ||||
Stock-based compensation expense | — | 6,248 | |||||
Deferred income tax expense (benefit) | 362 | (384 | ) | ||||
Impairment loss on fixed assets | 313 | 7,828 | |||||
Net cash used in activities on trading securities | (14,866 | ) | (40,671 | ) | |||
Other, net | 4,785 | 2,802 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in trade notes and other receivables | (6,602 | ) | 20,107 | ||||
Increase in other assets | (1,164 | ) | (32,228 | ) | |||
Decrease (increase) in inventory | 10,144 | (31,246 | ) | ||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 63 | (2,743 | ) | ||||
Net cash used in continuing operations | (11,526 | ) | (88,728 | ) | |||
Cash Flows from Discontinued Operations: | |||||||
Income from discontinued operations | 27,861 | 59,146 | |||||
Depreciation, depletion and amortization | 194 | 28,124 | |||||
Change in fair market value of Oil and Gas derivative contracts | — | (37,252 | ) | ||||
Changes in operating assets and liabilities | — | 5,240 | |||||
Gains on sales of assets | (13,185 | ) | — | ||||
Other, net | (15,471 | ) | 3,708 | ||||
Net cash (used in) provided by discontinued operations | (601 | ) | 58,966 | ||||
Net cash used in operating activities | (12,126 | ) | (29,762 | ) | |||
Cash Flows from Investing Activities: | |||||||
Cash Flows from Continuing Operations: | |||||||
Capital expenditures | (16,898 | ) | (5,221 | ) | |||
Purchases of marketable equity and debt securities | (75,671 | ) | (72,378 | ) | |||
Proceeds from sales of marketable equity and debt securities | 51,471 | 44,056 | |||||
Net proceeds from sales and disposition of fixed assets | 6,775 | 7,094 | |||||
Other | — | (18 | ) | ||||
Net cash used in investing activities – continuing operations | (34,323 | ) | (26,467 | ) | |||
Cash Flows from Discontinued Operations: | |||||||
Capital expenditures | — | (51,476 | ) | ||||
Net proceeds from the sales of real estate | 4,359 | 991 | |||||
Purchase of minority interest of investment in subsidiary | (47,283 | ) | — | ||||
Release of escrow funds relating to asset sales | 50,000 | — | |||||
Other | (7,319 | ) | (387 | ) | |||
Net cash used in investing activities – discontinued operations | (243 | ) | (50,872 | ) | |||
Net cash used in investing activities | (34,566 | ) | (77,339 | ) |
Three Months Ended March 31, 2007 and 2006
2007 | 2006 | ||||||
(unaudited) (in $000s) | |||||||
Cash Flows from Financing Activities: | |||||||
Cash Flows Continuing Operations: | |||||||
Partners’ equity: | |||||||
Partnership distributions | $ | (6,311 | ) | $ | — | ||
Dividend paid to minority holders of subsidiary | (18,451 | ) | — | ||||
Debt: | |||||||
Net change in due to/from affiliates | 679 | (3 | ) | ||||
Proceeds from senior notes payable | 492,130 | — | |||||
Repayment of credit facilities | (127 | ) | — | ||||
Periodic principal payments | (1,262 | ) | (1,098 | ) | |||
Net cash provided by (used in) financing activities – continuing operations | 466,658 | (1,101 | ) | ||||
Net cash used in financing activities – discontinued operations | — | (3,075 | ) | ||||
Net Cash Provided by (used in) Financing Activities | 466,658 | (4,176 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 419,965 | (111,277 | ) | ||||
Net change in cash of assets held for sale | — | 37,112 | |||||
Cash and cash equivalents, beginning of period | 1,911,456 | 459,315 | |||||
Cash and cash equivalents, end of period | $ | 2,331,421 | $ | 385,150 | |||
Supplemental information | |||||||
Cash payments for interest | $ | 45,982 | $ | 26,950 | |||
Cash payments for income taxes, net of refunds | $ | 3,429 | $ | 798 | |||
Net unrealized losses on securities available for sale | $ | (11,429 | ) | $ | (10,751 | ) |
March 31, 2007
March 31, 2007
March 31, 2007
March 31, 2007
March 31, 2007 | December 31, 2006 | ||||||
(unaudited) | |||||||
Current assets | $ | 98,667 | $ | 85,583 | |||
Property, plant and equipment, net | 417,978 | 422,715 | |||||
Other non-current assets | 44,001 | 44,455 | |||||
Total assets | $ | 560,646 | $ | 552,753 | |||
Current liabilities | $ | 50,614 | $ | 54,763 | |||
Long-term debt | 257,202 | 257,329 | |||||
Other non-current liabilities | 6,144 | 5,993 | |||||
Total liabilities | $ | 313,960 | $ | 318,085 |
March 31, 2007
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
Revenues: | |||||||
Casino | $ | 67,370 | $ | 48,022 | |||
Hotel | 22,616 | 17,433 | |||||
Food and beverage | 23,109 | 18,070 | |||||
Tower, retail and other income | 9,311 | 8,219 | |||||
Gross revenues | 122,406 | 91,744 | |||||
Less promotional allowances | 9,518 | 5,799 | |||||
Net revenues | 112,888 | 85,945 | |||||
Expenses: | |||||||
Casino | 22,566 | 16,488 | |||||
Hotel | 9,063 | 6,843 | |||||
Food and beverage | 15,975 | 13,201 | |||||
Tower, retail and other income | 4,244 | 4,248 | |||||
Selling, general and administrative | 29,472 | 20,782 | |||||
Depreciation and amortization | 8,341 | 5,760 | |||||
Total costs and expenses | 89,661 | 67,322 | |||||
Operating income from continuing operations | $ | 23,227 | $ | 18,623 |
March 31, 2007 | December 31, 2006 | ||||||
(unaudited) | |||||||
Rental properties: | |||||||
Finance leases, net | $ | 65,302 | $ | 66,335 | |||
Operating leases | 41,653 | 46,170 | |||||
Property development | 122,306 | 126,537 | |||||
Resort properties | 44,591 | 44,932 | |||||
Total real estate | $ | 273,852 | $ | 283,974 |
March 31, 2007
Three Months Ended March 31, | ||||||
2007 | 2006 | |||||
Revenues: | ||||||
Rental real estate: | ||||||
Interest income on financing leases | $ | 1,578 | $ | 1,735 | ||
Rental income | 1,939 | 1,511 | ||||
Property development | 18,145 | 11,384 | ||||
Resort activities | 6,225 | 6,082 | ||||
Total revenues | 27,887 | 20,712 | ||||
Operating expenses: | ||||||
Rental real estate | 1,493 | 998 | ||||
Property development | 15,612 | 9,976 | ||||
Resort activities | 6,501 | 6,264 | ||||
Total expenses | 23,606 | 17,238 | ||||
Operating income | $ | 4,281 | $ | 3,474 |
March 31, 2007 | December 31, 2006 | |||||
(unaudited) | ||||||
Leased to others | $ | 34,653 | $ | 28,015 | ||
Vacant | 703 | 703 | ||||
35,356 | 28,718 | |||||
Less: accumulated depreciation | (8,097 | ) | (5,053 | ) | ||
Total | $ | 27,259 | $ | 23,665 |
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
Properties sold | 1 | 4 | |||||
Proceeds received | $ | 4,359 | $ | 973 | |||
Total gain recorded | $ | 3,862 | $ | 251 | |||
Gain recorded in discontinued operations | $ | 3,862 | $ | 251 |
March 31, 2007
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
Units sold: | |||||||
New Seabury, Massachusetts | 6 | 10 | |||||
Grand Harbor/Oak Harbor, Florida | 5 | 2 | |||||
Falling Waters, Florida | 23 | — | |||||
Westchester, New York | 2 | — | |||||
Tampa Bay, Florida | 1 | — | |||||
37 | 12 | ||||||
Revenues: | |||||||
New Seabury, Massachusetts | $ | 3,583 | $ | 9,033 | |||
Grand Harbor/Oak Harbor, Florida | 4,349 | 2,321 | |||||
Falling Waters, Florida | 5,466 | — | |||||
Westchester, New York | 3,243 | 30 | |||||
Tampa Bay, Florida | 1,504 | — | |||||
$ | 18,145 | $ | 11,384 |
March 31, 2007 | December 31, 2006 | ||||||
(unaudited) | |||||||
Current assets | $ | 533,815 | $ | 567,419 | |||
Assets held for sale | 20,946 | 23,838 | |||||
Property plant and equipment, net | 206,764 | 200,382 | |||||
Intangible and other assets | 38,333 | 38,199 | |||||
Total assets | $ | 799,858 | $ | 829,838 | |||
Current liabilities | $ | 107,447 | $ | 101,609 | |||
Other liabilities | 6,941 | 8,980 | |||||
Total liabilities | $ | 114,388 | $ | 110,589 |
March 31, 2007
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
Net sales | $ | 210,604 | $ | 243,490 | |||
Cost of goods sold | 205,910 | 228,360 | |||||
Gross earnings | 4,694 | 15,130 | |||||
Selling, general and administrative expenses | 39,398 | 43,317 | |||||
Restructuring and impairment charges | 4,311 | 9,771 | |||||
Operating loss | $ | (39,015 | ) | $ | (37,958 | ) |
March 31, 2007
March 31, 2007
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
Revenues | |||||||
Oil and Gas | $ | — | $ | 108,292 | |||
Atlantic City Gaming | — | 40,773 | |||||
Rental Real Estate | 1,238 | 1,718 | |||||
Total revenues | $ | 1,238 | $ | 150,783 | |||
Operating income from discontinued operations: | |||||||
Oil and Gas | $ | — | $ | 64,988 | |||
Atlantic City Gaming | — | 732 | |||||
Rental Real Estate | 1,079 | 962 | |||||
Total operating income | 1,079 | 66,682 | |||||
Interest expense | (270 | ) | (5,435 | ) | |||
Interest and other income | 18,642 | 1,040 | |||||
Income tax expense | (2,981 | ) | (3,446 | ) | |||
Income from discontinued operations | 16,470 | 58,841 | |||||
Minority interest | (1,794 | ) | 54 | ||||
Gain on sales of discontinued operations, net of income taxes | 13,185 | 251 | |||||
$ | 27,861 | $ | 59,146 |
March 31, 2007
March 31, 2007 | December 31, 2006 | |||||||||||
Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | |||||||||
(unaudited) | ||||||||||||
Current Investments: | ||||||||||||
Trading | ||||||||||||
Other investments | $ | — | $ | 28,727 | $ | — | $ | 20,538 | ||||
Total current trading | — | 28,727 | — | 20,538 | ||||||||
Available for Sale | ||||||||||||
Marketable equity and debt securities | 236,354 | 247,880 | 242,080 | 265,411 | ||||||||
Other investments | 284,535 | 286,945 | 251,131 | 253,166 | ||||||||
Total current available for sale | 520,889 | 534,825 | 493,211 | 518,577 | ||||||||
Total current investments | $ | 520,889 | $ | 563,552 | $ | 493,211 | $ | 539,115 |
March 31, 2007
March 31, 2007 | December 31, 2006 | |||||
(unaudited) | ||||||
Raw materials and supplies | $ | 26,372 | $ | 32,059 | ||
Goods in process | 77,481 | 83,592 | ||||
Finished goods | 131,505 | 129,851 | ||||
$ | 235,358 | $ | 245,502 |
March 31, 2007 | December 31, 2006 | ||||||
(unaudited) | |||||||
Trade receivables – Home Fashion | $ | 142,827 | $ | 134,111 | |||
Allowance for doubtful accounts – Home Fashion | (8,136 | ) | (8,303 | ) | |||
Other | 35,150 | 50,688 | |||||
$ | 169,841 | $ | 176,496 |
March 31, 2007
March 31, 2007 | December 31, 2006 | |||||
(unaudited) | ||||||
Restricted cash | $ | 33,090 | $ | 87,428 | ||
Other | 43,299 | 47,559 | ||||
$ | 76,389 | $ | 134,987 |
March 31, 2007 | December 31, 2006 | ||||||
(unaudited) | |||||||
Land | $ | 115,236 | $ | 129,729 | |||
Buildings and improvements | 443,402 | 446,878 | |||||
Machinery, equipment and furniture | 332,614 | 333,741 | |||||
Assets leased to others | 117,110 | 123,398 | |||||
Construction in progress | 112,480 | 90,672 | |||||
1,120,842 | 1,124,418 | ||||||
Less accumulated depreciation and amortization | (222,248 | ) | (217,347 | ) | |||
Net property, plant and equipment | $ | 898,594 | $ | 907,071 |
March 31, 2007 | December 31, 2006 | |||||
(unaudited) | ||||||
Deferred taxes | $ | 45,626 | $ | 48,976 | ||
Deferred finance costs, net of accumulated amortization of $4,945 and $4,827 as of March 31, 2007 and December 31, 2006, respectively | 10,325 | 11,684 | ||||
Other | 25,363 | 24,577 | ||||
$ | 81,314 | $ | 85,237 |
March 31, 2007
March 31, 2007 | December 31, 2006 | ||||
(unaudited) | |||||
WPI | $ | 166,938 | $ | 178,843 | |
Atlantic Coast | 6,969 | 70,563 | |||
NEGI | 24,112 | 42,815 | |||
$ | 198,019 | $ | 292,221 |
March 31, 2007 | December 31, 2006 | ||||||
(unaudited) | |||||||
Senior unsecured 7.125% notes due 2013 – AREP | $ | 967,982 | $ | 475,500 | |||
Senior unsecured 8.125% notes due 2012 – AREP | 346,352 | 346,027 | |||||
Senior secured 7.85% notes due 2012 – ACEP | 215,000 | 215,000 | |||||
Borrowings under credit facility – ACEP | 40,000 | 40,000 | |||||
Mortgages payable | 108,027 | 109,289 | |||||
Other | 12,470 | 13,425 | |||||
Total long-term debt | 1,689,831 | 1,199,241 | |||||
Less current portion | (23,620 | ) | (23,970 | ) | |||
$ | 1,666,211 | $ | 1,175,271 |
March 31, 2007
March 31, 2007
March 31, 2007
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
Net realized gains on sales of marketable securities | $ | 5,177 | $ | 33,431 | |||
Unrealized gains on marketable securities | 72,126 | 15,478 | |||||
Net realized losses on securities sold short | (1,510 | ) | (5,131 | ) | |||
Unrealized gains (losses) on securities sold short | 3,617 | (25,476 | ) | ||||
Gain on sale of assets | 3,612 | — | |||||
Other | 1,759 | 3,007 | |||||
$ | 84,781 | $ | 21,309 |
March 31, 2007
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
Revenues: | |||||||
Gaming, net | $ | 112,888 | $ | 85,945 | |||
Real Estate: | |||||||
Rental Real Estate | 3,517 | 3,246 | |||||
Property development | 18,145 | 11,384 | |||||
Resort operations | 6,225 | 6,082 | |||||
Total Real Estate | 27,887 | 20,712 | |||||
Home Fashion | 210,604 | 243,490 | |||||
Total revenues | $ | 351,379 | $ | 350,147 | |||
Net segment operating income (loss): | |||||||
Gaming | $ | 23,227 | $ | 18,623 | |||
Real Estate: | |||||||
Rental Real Estate | 2,024 | 2,248 | |||||
Property development | 2,533 | 1,408 | |||||
Resort operations | (276 | ) | (182 | ) | |||
Total Real Estate | 4,281 | 3,474 | |||||
Home Fashion | (39,015 | ) | (37,958 | ) | |||
Total segment operating loss | (11,507 | ) | (15,861 | ) | |||
Holding Company costs(i) | (7,668 | ) | (11,145 | ) | |||
Total operating loss | (19,175 | ) | (27,006 | ) | |||
Interest expense | (31,432 | ) | (23,692 | ) | |||
Interest income | 31,458 | 11,554 | |||||
Other income (expense), net | 84,781 | 21,309 | |||||
Equity in earnings of affiliate | — | 24 | |||||
Income from continuing operations before income taxes & minority interest | 65,632 | (17,811 | ) | ||||
Income tax expense | (6,949 | ) | (5,211 | ) | |||
Minority interests | 11,590 | 15,069 | |||||
Income (loss) from continuing operations | $ | 70,273 | $ | (7,953 | ) |
March 31, 2007
March 31, 2007 | December 31, 2006 | |||||
(unaudited) | (restated) | |||||
Assets (in $000s): | ||||||
Gaming | $ | 560,646 | $ | 552,753 | ||
Real Estate | 386,833 | 382,220 | ||||
Home Fashion | 778,912 | 806,000 | ||||
Subtotal | 1,726,391 | 1,740,973 | ||||
Assets of discontinued operations held for sale | 48,205 | 47,503 | ||||
Reconciling items(ii) | 2,855,543 | 2,463,167 | ||||
Total assets | $ | 4,630,139 | $ | 4,251,643 |
Three Months Ended March 31, | |||||||
2007 | 2006 | ||||||
Current | $ | (6,587 | ) | $ | (5,595 | ) | |
Deferred | $ | (362 | ) | 384 | |||
$ | (6,949 | ) | (5,211 | ) |
March 31, 2007
March 31, 2007
March 31, 2007 | December 31, 2006 | |||||
(unaudited) | ||||||
Financial Instruments Owned: | ||||||
Trading investments | $ | 28,727 | $ | 20,538 | ||
Available for sale investments: | ||||||
Marketable equity and debt securities | 247,880 | 265,411 | ||||
Other securities | 286,945 | 253,166 | ||||
Investment in ImClone Systems Incorporated | 186,058 | 122,122 | ||||
$ | 749,610 | $ | 661,237 | |||
Securities sold not yet purchased | $ | 8,682 | $ | 25,398 |
March 31, 2007
Assets and Liabilities at Fair Value As of March 31, 2007 ($000) | |||||||||
Level 1 | Level 2 | Total | |||||||
(unaudited) | |||||||||
Assets | |||||||||
Trading investments(i) | $ | 28,727 | $ | — | $ | 28,727 | |||
Available for sale investments: | |||||||||
Marketable equity and debt securities(i) | 247,880 | — | 247,880 | ||||||
Other securities | 23,500 | (i) | 263,445 | (ii) | 286,945 | ||||
Investment in ImClone Systems Incorporated(i) | 186,058 | — | 186,058 | ||||||
$ | 486,165 | $ | 263,445 | $ | 749,610 | ||||
Liabilities | |||||||||
Securities sold not yet purchased(i) | $ | 8,682 | — | 8,682 |
March 31, 2007
American Property Investors, Inc.
June 15, 2007
December 31, 2006 | |||
ASSETS | |||
Cash and cash equivalents | $ | 1,204,034 | |
Investment in partnerships (Note B) | 52,342,623 | ||
$ | 53,546,657 | ||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||
Accounts payable and accrued expenses | 6,059 | ||
Stockholder’s equity: | |||
Common stock – $1 par value, 1,216 shares authorized, 216 shares outstanding | 216 | ||
Additional paid-in capital | 35,507,904 | ||
Note receivable from affiliate (Note C) | (9,500,000) | ||
Retained earnings | 26,938,478 | ||
Accumulated other comprehensive income | 594,000 | ||
Total stockholder’s equity | 53,540,598 | ||
Total liabilities and stockholder's equity | $ | 53,546,657 |
December 31, 2006
December 31, 2006
December 31, 2006
December 31, 2006 | |||
ASSETS | |||
Cash and cash equivalents | $ | 1,912,235 | |
Investments | 539,115 | ||
Inventories, net | 245,502 | ||
Trade, notes and other receivables, net | 176,496 | ||
Other current assets | 134,987 | ||
Assets held for sale | 47,503 | ||
Total current assets | 3,055,838 | ||
Property, plant and equipment, net | |||
Gaming | 422,715 | ||
Real Estate | 283,974 | ||
Home Fashion | 200,382 | ||
Total property, plant and equipment | 907,071 | ||
Equity investment and other | 179,932 | ||
Intangible assets | 25,916 | ||
Other assets | 75,990 | ||
Total assets | $ | 4,244,747 | |
LIABILITIES AND PARTNERS’ EQUITY | |||
Accounts payable | $ | 69,853 | |
Accrued expenses and other current liabilities | 197,792 | ||
Current portion of long-term debt | 23,970 | ||
Securities sold not yet purchased | 25,398 | ||
Margin liability on marketable securities | — | ||
Liabilities of discontinued operations held for sale | — | ||
Total current liabilities | 317,013 | ||
Long-term debt | 1,184,990 | ||
Other non-current liabilities | 22,212 | ||
Preferred limited partnership units | 117,656 | ||
Minority interests | 292,221 | ||
Partners’ equity | 2,310,655 | ||
Total liabilities and partners’ equity | $ | 4,244,747 |
Lear Corporation
February 20, 2007
December 31, | |||||||
2006 | 2005 | ||||||
(in millions, except share data) | |||||||
ASSETS | |||||||
Current Assets: | $ | 502.7 | $ | 197.3 | |||
Cash and cash equivalents | |||||||
Accounts receivable | 2,006.9 | 2,000.1 | |||||
Inventories | 581.5 | 595.6 | |||||
Current assets of business held for sale | 427.8 | 607.7 | |||||
Other | 371.4 | 445.7 | |||||
Total current assets | 3,890.3 | 3,846.4 | |||||
Long-Term Assets: | |||||||
Property, plant and equipment, net | 1,471.7 | 1,614.7 | |||||
Goodwill, net | 1,996.7 | 1,939.8 | |||||
Long-term assets of business held for sale | — | 485.2 | |||||
Other | 491.8 | 402.3 | |||||
Total long-term assets | 3,960.2 | 4,442.0 | |||||
$ | 7,850.5 | $8,288.4 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term borrowings | $ | 39.3 | $ | 23.4 | |||
Accounts payable and drafts | 2,317.4 | 2,516.0 | |||||
Accrued liabilities | 1,099.3 | 1,008.6 | |||||
Current liabilities of business held for sale | 405.7 | 549.3 | |||||
Current portion of long-term debt | 25.6 | 9.4 | |||||
Total current liabilities | 3,887.3 | 4,106.7 | |||||
Long-Term Liabilities: | |||||||
Long-term debt | 2,434.5 | 2,243.1 | |||||
Long-term liabilities of business held for sale | 48.5 | 27.6 | |||||
Other | 878.2 | 800.0 | |||||
Total long-term liabilities | 3,361.2 | 3,070.7 | |||||
Stockholders’ Equity: | |||||||
Common stock, par value $0.01 per share, 150,000,000 shares authorized, 81,984,306 shares and 73,281,653 shares issued as of December 31, 2006 and 2005, respectively | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,338.1 | 1,108.6 | |||||
Common stock held in treasury, 5,732,316 shares and 6,094,847 shares as of December 31, 2006 and 2005, respectively, at cost | (210.2 | ) | (225.5 | ) | |||
Retained earnings (deficit) | (362.5 | ) | 361.8 | ||||
Accumulated other comprehensive loss | (164.1 | ) | (134.6 | ) | |||
Total stockholders’ equity | 602.0 | 1,111.0 | |||||
$ | 7,850.5 | $ | 8,288.4 |
For the Year Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(in million, except per share data) | ||||||||||
Net sales | $ | 17,838.9 | $ | 17,089.2 | $ | 16,960.0 | ||||
Cost of sales | 16,911.2 | 16,353.2 | 15,557.9 | |||||||
Selling, general and administrative expenses | 646.7 | 630.6 | 633.7 | |||||||
Goodwill impairment charge | 2.9 | 1,012.8 | — | |||||||
Loss on divestiture of Interior business | 636.0 | — | — | |||||||
Interest expense | 209.8 | 183.2 | 165.5 | |||||||
Other expense, net | 85.7 | 38.0 | 38.6 | |||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates and cumulative effect of a change in accounting principle | (653.4 | ) | (1,128.6 | ) | 564.3 | |||||
Provision for income taxes | 54.9 | 194.3 | 128.0 | |||||||
Minority interests in consolidated subsidiaries | 18.3 | 7.2 | 16.7 | |||||||
Equity in net (income) loss of affiliates | (16.2 | ) | 51.4 | (2.6 | ) | |||||
Income (loss) before cumulative effect of a change in accounting principle | (710.4 | ) | (1,381.5 | ) | 422.2 | |||||
Cumulative effect of a change in accounting principle | 2.9 | — | — | |||||||
Net income (loss) | $ | (707.5 | ) | $ | (1,381.5 | ) | $ | 422.2 | ||
Basic net income (loss) per share: | ||||||||||
Income (loss) before cumulative effect of a change in accounting principle | $ | (10.35 | ) | $ | (20.57 | ) | $ | 6.18 | ||
Cumulative effect of change in accounting principle | 0.04 | — | — | |||||||
Basic net income (loss) per share | $ | (10.31 | ) | $ | (20.57 | ) | $ | 6.18 | ||
Diluted net income (loss) per share: | ||||||||||
Income (loss) before cumulative effect of a change in accounting principle | $ | (10.35 | ) | $ | (20.57 | ) | $ | 5.77 | ||
Cumulative effect of change in accounting principle | 0.04 | — | — | |||||||
Diluted net income (loss) per share | $ | (10.31 | ) | $ | (20.57 | ) | $ | 5.77 |
December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(in millions, except share data) | ||||||||||
Common Stock | ||||||||||
Balance at beginning and end of period | $ | 0.7 | $ | 0.7 | $ | 0.7 | ||||
Additional Paid-in Capital | ||||||||||
Balance at beginning of period | $ | 1,108.6 | $ | 1,064.4 | $ | 1,027.7 | ||||
Net proceeds from the issuance of 8,695,653 shares of common stock | 199.2 | — | — | |||||||
Stock-based compensation | 30.7 | 43.8 | 26.4 | |||||||
Cumulative effect of a change in accounting principle | (0.4 | ) | — | — | ||||||
Tax benefit of stock options exercised | — | 0.4 | 10.3 | |||||||
Balance at end of period | $ | 1,338.1 | $ | 1,108.6 | $ | 1,064.4 | ||||
Treasury Stock | ||||||||||
Balance at beginning of period | $ | (225.5 | ) | $ | (204.1 | ) | $ | (110.8 | ) | |
Issuances of 362,531 shares at an average price of $42.40 | 15.3 | — | — | |||||||
Purchases of 490,900 shares at an average price of $51.75 | — | (25.4 | ) | — | ||||||
Issuances of 126,529 shares at an average price of $31.99 | — | 4.0 | — | |||||||
Purchases of 1,834,300 shares at an average price of $53.29 | — | — | (97.7 | ) | ||||||
Issuances of 395,126 shares at an average price of $11.12 per share in settlement of stock-based compensation | — | — | 4.4 | |||||||
Balance at end of period | $ | (210.2 | ) | $ | (225.5 | ) | $ | (204.1 | ) | |
Retained Earnings (Deficit) | ||||||||||
Balance at beginning of period | $ | 361.8 | $ | 1,810.5 | $ | 1,441.8 | ||||
Net income (loss) | (707.5 | ) | (1,381.5 | ) | 422.2 | |||||
Dividends declared of $0.25 per share in 2006, $1.00 per share in 2005 and $0.80 per share in 2004 | (16.8 | ) | (67.2 | ) | (53.5 | ) | ||||
Balance at end of period | $ | (362.5 | ) | $ | 361.8 | $ | 1,810.5 | |||
Accumulated Other Comprehensive Income (Loss) | ||||||||||
Defined Benefit Plans | ||||||||||
Balance at beginning of period | $ | (115.0 | ) | $ | (72.6 | ) | $ | (62.2 | ) | |
Defined benefit plan adjustments | 17.4 | (42.4 | ) | (10.4 | ) | |||||
Adoption of SFAS No. 158 | (166.6 | ) | — | — | ||||||
Balance at end of period | $ | (264.2 | ) | $ | (115.0 | ) | $ | (72.6 | ) | |
Derivative Instruments and Hedging Activities | ||||||||||
Balance at beginning of period | $ | 9.0 | $ | 17.4 | $ | (13.7 | ) | |||
Derivative instruments and hedging activities adjustments | 5.7 | (8.4 | ) | 31.1 | ||||||
Balance at end of period | $ | 14.7 | $ | 9.0 | $ | 17.4 | ||||
Cumulative Translation Adjustments | ||||||||||
Balance at beginning of period | $ | (86.8 | ) | $ | 65.6 | $ | (61.5 | ) | ||
Cumulative translation adjustments | 90.7 | (152.4 | ) | 127.1 | ||||||
Balance at end of period | $ | 3.9 | $ | (86.8 | ) | $ | 65.6 | |||
Deferred Income Tax Asset | ||||||||||
Balance at beginning of period | $ | 58.2 | $ | 48.2 | $ | 35.5 | ||||
Deferred income tax asset adjustments | 23.3 | 10.0 | 12.7 | |||||||
Balance at end of period | $ | 81.5 | $ | 58.2 | $ | 48.2 | ||||
Accumulated other comprehensive income (loss) | $ | (164.1 | ) | $ | (134.6 | ) | $ | 58.6 | ||
Total Stockholders’ Equity | $ | 602.0 | $ | 1,111.0 | $ | 2,730.1 | ||||
Comprehensive Income (Loss) | ||||||||||
Net income (loss) | $ | (707.5 | ) | $ | (1,381.5 | ) | $ | 422.2 | ||
Defined benefit plan adjustments | 17.4 | (42.4 | ) | (10.4 | ) | |||||
Derivative instruments and hedging activities adjustments | 5.7 | (8.4 | ) | 31.1 | ||||||
Cumulative translation adjustments | 90.7 | (152.4 | ) | 127.1 | ||||||
Deferred income tax asset adjustments | 23.3 | 10.0 | 12.7 | |||||||
Comprehensive Income (Loss) | $ | (570.4 | ) | $ | (1,574.7 | ) | $ | 582.7 |
For the Year Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(in millions) | ||||||||||
Cash Flows from Operating Activities: | ||||||||||
Net income (loss) | $ | (707.5 | ) | $ | (1,381.5 | ) | $ | 422.2 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities — | ||||||||||
Cumulative effect of a change in accounting principle | (2.9 | ) | — | — | ||||||
Goodwill impairment charges | 2.9 | 1,012.8 | — | |||||||
Loss on divestiture of Interior business | 636.0 | — | — | |||||||
Fixed asset impairment charges | 15.8 | 97.4 | 3.0 | |||||||
Deferred tax provision (benefit) | (55.0 | ) | 44.7 | 8.7 | ||||||
Equity in net (income) loss of affiliates | (16.2 | ) | 51.4 | (2.6 | ) | |||||
Depreciation and amortization | 392.2 | 393.4 | 355.1 | |||||||
Net change in recoverable customer engineering and tooling | 194.9 | (112.5 | ) | (32.5 | ) | |||||
Net change in working capital items | (110.1 | ) | 9.7 | (62.4 | ) | |||||
Net change in sold accounts receivable | (178.0 | ) | 411.1 | (70.4 | ) | |||||
Other, net | 113.2 | 34.3 | 54.8 | |||||||
Net cash provided by operating activities | 285.3 | 560.8 | 675.9 | |||||||
Cash Flows from Investing Activities: | ||||||||||
Additions to property, plant and equipment | (347.6 | ) | (568.4 | ) | (429.0 | ) | ||||
Cost of acquisitions, net of cash acquired | (30.5 | ) | (11.8 | ) | (103.0 | ) | ||||
Net proceeds from disposition of businesses and other assets | 65.9 | 33.3 | 56.3 | |||||||
Other, net | — | 5.3 | 3.2 | |||||||
Net cash used in investing activities | (312.2 | ) | (541.6 | ) | (472.5 | ) | ||||
Cash Flows from Financing Activities: | ||||||||||
Issuance of senior notes | 900.0 | — | 399.2 | |||||||
Repayment of senior notes | (1,356.9 | ) | (600.0 | ) | — | |||||
Primary credit facility borrowings, net | 597.0 | 400.0 | — | |||||||
Other long-term debt repayments, net | (36.5 | ) | (32.7 | ) | (49.4 | ) | ||||
Short-term debt repayments, net | (11.8 | ) | (23.8 | ) | (29.8 | ) | ||||
Net proceeds from the sale of common stock | 199.2 | — | — | |||||||
Dividends paid | (16.8 | ) | (67.2 | ) | (68.0 | ) | ||||
Proceeds from exercise of stock options | 0.2 | 4.7 | 24.4 | |||||||
Repurchase of common stock | — | (25.4 | ) | (97.7 | ) | |||||
Increase (decrease) in drafts | 3.0 | (3.3 | ) | (12.6 | ) | |||||
Other, net | — | 0.7 | — | |||||||
Net cash provided by (used in) financing activities | 277.4 | (347.0 | ) | 166.1 | ||||||
Effect of foreign currency translation | 54.9 | (59.8 | ) | 46.1 | ||||||
Net Change in Cash and Cash Equivalents | 305.4 | (387.6 | ) | 415.6 | ||||||
Cash and Cash Equivalents at Beginning of Year | 197.3 | 584.9 | 169.3 | |||||||
Cash and Cash Equivalents at End of Year | $ | 502.7 | $ | 197.3 | $ | 584.9 | ||||
Changes in Working Capital: | ||||||||||
Accounts receivable | $ | 153.2 | $ | (250.3 | ) | $ | (147.7 | ) | ||
Inventories | 29.4 | (76.9 | ) | (7.0 | ) | |||||
Accounts payable | (358.9 | ) | 298.1 | 189.8 | ||||||
Accrued liabilities and other | 66.2 | 38.8 | (97.5 | ) | ||||||
Net change in working capital items | $ | (110.1 | ) | $ | 9.7 | $ | (62.4 | ) | ||
Supplementary Disclosure: | ||||||||||
Cash paid for interest | $ | 218.5 | $ | 172.6 | $ | 153.5 | ||||
Cash paid for income taxes, net of refunds received of $30.7 in 2006, $76.7 in 2005 and $52.7 in 2004 | $ | 84.8 | $ | 112.7 | $ | 140.0 |
December 31, | ||||||
2006 | 2005 | |||||
Raw materials | $ | 439.9 | $ | 449.2 | ||
Work-in-process | 35.6 | 36.7 | ||||
Finished goods | 106.0 | 109.7 | ||||
Inventories | $ | 581.5 | $ | 595.6 |
December 31, | ||||||
2006 | 2005 | |||||
Current | $ | 87.7 | $ | 160.4 | ||
Long-term | 116.2 | 146.9 | ||||
Recoverable customer engineering and tooling | $ | 203.9 | $ | 307.3 |
Buildings and improvements | 20 to 40 years | |
Machinery and equipment | 5 to 15 years |
December 31, | |||||||
2006 | 2005 | ||||||
Land | $ | 131.0 | $ | 131.5 | |||
Buildings and improvements | 516.7 | 572.8 | |||||
Machinery and equipment | 2,077.5 | 2,116.0 | |||||
Construction in progress | 60.7 | 56.1 | |||||
Total property, plant and equipment | 2,785.9 | 2,876.4 | |||||
Less — accumulated depreciation | (1,314.2 | ) | (1,261.7 | ) | |||
Net property, plant and equipment | $ | 1,471.7 | $ | 1,614.7 |
Seating | Electronic and Electrical | Interior | Total | ||||||||||
Balance as of January 1, 2005 | $ | 1,075.7 | $ | 945.9 | $ | 1,017.8 | $ | 3,039.4 | |||||
Goodwill impairment charges | — | — | (1,012.8 | ) | (1,012.8 | ) | |||||||
Foreign currency translation and other | (41.5 | ) | (40.3 | ) | (5.0 | ) | (86.8 | ) | |||||
Balance as of December 31, 2005 | $ | 1,034.2 | $ | 905.6 | $ | — | $ | 1,939.8 | |||||
Purchase price adjustment | — | 16.1 | 2.9 | 19.0 | |||||||||
Goodwill impairment charges | — | — | (2.9 | ) | (2.9 | ) | |||||||
Foreign currency translation and other | 26.5 | 14.3 | — | 40.8 | |||||||||
Balance as of December 31, 2006 | $ | 1,060.7 | $ | 936.0 | $ | — | $ | 1,996.7 |
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted Average Useful Life (Years) | ||||||||
Technology | $ | 2.8 | $ | (0.8 | ) | $ | 2.4 | 10.0 | |||
Customer contracts | 23.0 | (8.4 | ) | 14.6 | 7.7 | ||||||
Customer relationships | 29.8 | (4.5 | ) | 25.3 | 19.0 | ||||||
Balance as of December 31, 2006 | $ | 55.6 | $ | (13.7 | ) | $ | 41.9 | 14.7 |
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted Average Useful Life (Years) | ||||||||
Technology | $ | 2.8 | $ | (0.4 | ) | $ | 2.4 | 10.0 | |||
Customer contracts | 20.8 | (4.9 | ) | 15.9 | 7.7 | ||||||
Customer relationships | 27.2 | (2.4 | ) | 24.8 | 18.8 | ||||||
Balance as of December 31, 2005 | $ | 50.8 | $ | (7.7 | ) | $ | 43.1 | 14.2 |
For the Year Ended December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Other expense | $ | 101.3 | $ | 41.8 | $ | 38.6 | |||
Other income | (15.6 | ) | (3.8 | ) | — | ||||
Other expense, net | $ | 85.7 | $ | 38.0 | $ | 38.6 |
For the Year Ended December 31, | |||||||
2005 | 2004 | ||||||
Net income (loss), as reported | $ | (1,381.5 | ) | $ | 422.2 | ||
Add: Stock-based employee compensation expense included in reported net income (loss) | 14.7 | 10.9 | |||||
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards | (18.1 | ) | (21.6 | ) | |||
Net income (loss), pro forma | $ | (1,384.9 | ) | $ | 411.5 | ||
Net income (loss) per share: | |||||||
Basic – as reported | $ | (20.57 | ) | $ | 6.18 | ||
Basic – pro forma | $ | (20.62 | ) | $ | 6.03 | ||
Diluted – as reported | $ | (20.57 | ) | $ | 5.77 | ||
Diluted – pro forma | $ | (20.62 | ) | $ | 5.63 |
For the Year Ended December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Net income (loss) | $ | (707.5 | ) | $ | (1,381.5 | ) | $ | 422.2 | |
Add: After-tax interest expense on convertible debt | — | — | 9.3 | ||||||
Net income (loss), for diluted net income (loss) per share | $ | (707.5 | ) | $ | (1,381.5 | ) | $ | 431.5 |
For the Year Ended December 31, | ||||||
2006 | 2005 | 2004 | ||||
Weighted average common shares outstanding | 68,607,262 | 67,166,668 | 68,278,858 | |||
Dilutive effect of common stock equivalents | — | — | 1,635,349 | |||
Shares issuable upon conversion of convertible debt | — | — | 4,813,056 | |||
Diluted shares outstanding | 68,607,262 | 67,166,668 | 74,727,263 |
For the Year Ended December 31, | ||||||||
2006 | 2005 | 2004 | ||||||
Options | ||||||||
Antidilutive options | 2,790,305 | 2,983,405 | — | |||||
Exercise prices | $ | 22.12 – $55.33 | $ | 22.12 – $55.33 | — | |||
Restricted stock units | 1,964,571 | 2,234,122 | — | |||||
Performance units | 169,909 | 123,672 | — | |||||
Stock appreciation rights | 1,751,854 | 1,215,046 | — |
December 31, | ||||||
2006 | 2005 | |||||
Cash and cash equivalents | $ | 19.2 | $ | 10.3 | ||
Accounts receivable | 284.5 | 337.5 | ||||
Inventories | 69.2 | 92.7 | ||||
Recoverable customer engineering and tooling | 52.7 | 157.2 | ||||
Other current assets | 2.2 | 10.0 | ||||
Current assets of business held for sale | 427.8 | 607.7 | ||||
Property, plant and equipment, net | — | 404.5 | ||||
Other long-term assets | — | 80.7 | ||||
Long-term assets of business held for sale | — | 485.2 | ||||
Total assets of business held for sale | $ | 427.8 | $ | 1,092.9 |
December 31, | ||||||
2006 | 2005 | |||||
Accounts payable and drafts | 323.7 | 477.6 | ||||
Accrued liabilities | 79.8 | 71.7 | ||||
Current portion of long-term debt | 2.2 | — | ||||
Current liabilities of business held for sale | 405.7 | 549.3 | ||||
Long-term debt | 19.6 | — | ||||
Other long-term liabilities | 28.9 | 27.6 | ||||
Long-term liabilities of business held for sale | 48.5 | 27.6 | ||||
Total liabilities of business held for sale | $ | 454.2 | $ | 576.9 |
Accrual as of December 31, 2005 | Charges | Utilization | Accrual as of December 31, 2006 | ||||||||||||
Cash | Non-cash | ||||||||||||||
Employee termination benefits | $ | 15.1 | $ | 79.3 | $ | (58.0 | ) | $ | — | $ | 36.4 | ||||
Asset impairments | — | 5.8 | — | (5.8 | ) | — | |||||||||
Contract termination costs | 5.0 | 5.6 | (7.2 | ) | — | 3.4 | |||||||||
Other related costs | — | 1.6 | (1.6 | ) | — | — | |||||||||
Total | $ | 20.1 | $ | 92.3 | $ | (66.8 | ) | $ | (5.8 | ) | $ | 39.8 |
Utilization | Accrual as of December 31, 2005 | |||||||||||
Charges | Cash | Non-cash | ||||||||||
Employee termination benefits | $ | 56.5 | $ | (41.4 | ) | $ | — | $ | 15.1 | |||
Asset impairments | 15.1 | — | (15.1 | ) | — | |||||||
Contract termination costs | 11.4 | (6.4 | ) | — | 5.0 | |||||||
Other related costs | 3.8 | (3.8 | ) | — | — | |||||||
Total | $ | 86.8 | $ | (51.6 | ) | $ | (15.1 | ) | $ | 20.1 |
December 31, | |||||||
2006 | 2005 | 2004 | |||||
Honduras Electrical Distribution Systems S. de R.L. de C.V. (Honduras) | 60 | % | 60 | % | 60 | % | |
Lear-Kyungshin Sales and Engineering LLC | 60 | 60 | 60 | ||||
Shanghai Lear STEC Automotive Parts Co., Ltd. (China) | 55 | 55 | 55 | ||||
Lear Shurlok Electronics (Proprietary) Limited (South Africa) | 51 | 51 | — | ||||
Industrias Cousin Freres, S.L. (Spain) | 50 | 50 | 50 | ||||
Hanil Lear India Private Limited (India) | 50 | 50 | 50 | ||||
Nanjing Lear Xindi Automotive Interiors Systems Co., Ltd. (China) | 50 | 50 | 50 | ||||
Lear Dongfeng Automotive Seating Co., Ltd. (China) | 50 | 50 | 50 | ||||
Dong Kwang Lear Yuhan Hoesa (Korea) | 50 | 50 | 50 | ||||
Tacle Seating USA, LLC | 49 | — | — | ||||
Jiangxi Jiangling Lear Interior Systems Co. Ltd. (China) | 41 | 41 | 41 | ||||
Beijing Lear Dymos Automotive Seating and Interior Co., Ltd. (China) | 40 | 40 | 50 | ||||
Total Interior Systems — America, LLC | 39 | 39 | 39 | ||||
UPM S.r.L. (Italy) | 39 | 39 | 39 | ||||
Markol Otomotiv Yan Sanayi VE Ticaret A.S. (Turkey) | 35 | 35 | 35 | ||||
International Automotive Components Group, LLC | 33 | — | — | ||||
Lear Diamond Electro-Circuit Systems Co., Ltd. (Japan) | — | 50 | 50 | ||||
RecepTec Holdings, L.L.C. | — | 21 | 21 | ||||
Shenyang Lear Automotive Seating and Interior Systems Co., Ltd. (China) | — | — | 60 | ||||
Lear Furukawa Corporation | — | — | 51 | ||||
Lear-NHK Seating and Interior Co., Ltd. (Japan) | — | — | 50 | ||||
Bing Assembly Systems, L.L.C. | — | — | 49 | ||||
JL Automotive, LLC | — | — | 49 | ||||
Precision Fabrics Group, Inc. | — | — | 43 | ||||
Klingel Italiana S.R.L. (Italy) | — | — | 40 |
December 31, | ||||||
2006 | 2005 | |||||
Balance sheet data: | ||||||
Current assets | $ | 580.1 | $ | 183.8 | ||
Non-current assets | 317.2 | 64.5 | ||||
Current liabilities | 610.0 | 186.0 | ||||
Non-current liabilities | 12.9 | 16.5 |
For the Year Ended December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Income statement data: | |||||||||
Net sales | $ | 956.8 | $ | 1,248.4 | $ | 1,127.1 | |||
Gross profit | 50.7 | 56.1 | 87.7 | ||||||
Income before provision for income taxes | 16.3 | 0.9 | 16.0 | ||||||
Net income (loss) | 11.5 | (4.2 | ) | 11.3 |
For the Year Ended December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Sales to affiliates | $ | 35.8 | $ | 144.9 | $ | 140.3 | |||
Purchases from affiliates | 51.1 | 224.9 | 120.9 | ||||||
Purchases from other related parties(1) | 12.5 | 13.6 | 12.5 | ||||||
Management and other fees for services provided to affiliates | — | 0.6 | 3.3 | ||||||
Dividends received from affiliates | 1.6 | 5.3 | 3.2 |
December 31, | |||||||||||
2006 | 2005 | ||||||||||
Debt Instrument | Long-Term Debt | Weighted Average Interest Rate | Long-Term Debt | Weighted Average Interest Rate | |||||||
Amended and Restated Primary Credit Facility | $ | 997.0 | 7.49 | % | $ | 400.0 | 5.67 | % | |||
8.50% Senior Notes, due 2013 | 300.0 | 8.50 | % | — | — | ||||||
8.75% Senior Notes, due 2016 | 600.0 | 8.75 | % | — | — | ||||||
5.75% Senior Notes, due 2014 | 399.3 | 5.635 | % | 399.3 | 5.635 | % | |||||
Zero-Coupon Convertible Senior Notes, due 2022 | 3.6 | 4.75 | % | 300.1 | 4.75 | % | |||||
8.125% Senior Notes, due 2008 | 73.3 | 8.125 | % | 295.6 | 8.125 | % | |||||
8.11% Senior Notes, due 2009 | 41.4 | 8.11 | % | 800.0 | 8.35 | % | |||||
Other | 45.5 | 7.06 | % | 57.5 | 6.34 | % | |||||
2,460.1 | 2,252.5 | ||||||||||
Less — current portion | (25.6 | ) | (9.4 | ) | |||||||
Long-term debt | $ | 2,434.5 | $ | 2,243.1 |
Year | Borrowings | Repayments | ||||
2006 | $ | 11,978.2 | $ | 11,381.2 | ||
2005 | 8,942.4 | 8,542.4 | ||||
2004 | 4,153.1 | 4,153.1 |
Twelve-Month Period Commencing December 1, | ||||||
2013 Notes | 2016 Notes | |||||
2010 | 104.250 | % | N/A | |||
2011 | 102.125 | % | 104.375 | % | ||
2012 | 100.0 | % | 102.917 | % | ||
2013 | 100.0 | % | 101.458 | % | ||
2014 and thereafter | 100.0 | % | 100.0 | % |
December 31, 2006 | |||
Consolidated indebtedness | $ | 1,996.7 | |
Cash and cash equivalents | 502.7 | ||
Reported debt | $ | 2,499.4 |
Year Ended December 31, 2006 | ||||
Consolidated operating profit | $ | 835.9 | ||
Depreciation and amortization | (392.2 | ) | ||
Consolidated interest expense | (200.4 | ) | ||
Loss on divestiture of interior business | (636.0 | ) | ||
Other expense, net (excluding certain costs related to asset-backed securitization facility) | (77.7 | ) | ||
Restructuring charges | (105.5 | ) | ||
Impairment charges | (12.9 | ) | ||
Other non-cash items | (64.6 | ) | ||
Loss before provision for income taxes, minority interests in consolidated subsidiaries, equity in net income of affiliates and cumulative effect of a change in accounting principle | $ | (653.4 | ) | |
Consolidated interest expense | $ | 200.4 | ||
Certain costs related to asset-backed securitization facility | (8.0 | ) | ||
Amortization of deferred financing fees | 8.7 | |||
Bank facility and other fees | 8.7 | |||
Reported interest expense | $ | 209.8 |
Year | Maturities | ||
2007 | $ | 25.6 | |
2008 | 85.9 | ||
2009 | 53.1 | ||
2010 | 10.7 | ||
2011 | 8.6 |
For the Year Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates and cumulative effect of a change in accounting principle | ||||||||||
Domestic | $ | (785.3 | ) | $ | (1,520.8 | ) | $ | 47.7 | ||
Foreign | 131.9 | 392.2 | 516.6 | |||||||
$ | (653.4 | ) | $ | (1,128.6 | ) | $ | 564.3 | |||
Domestic provision for income taxes: | ||||||||||
Current provision (benefit) | $ | 30.6 | $ | (12.9 | ) | $ | 7.2 | |||
Deferred provision (benefit) | (1.6 | ) | 65.3 | (4.0 | ) | |||||
Total domestic provision | 29.0 | 52.4 | 3.2 | |||||||
Foreign provision for income taxes: | ||||||||||
Current provision | 79.3 | 162.5 | 112.1 | |||||||
Deferred provision (benefit) | (53.4 | ) | (20.6 | ) | 12.7 | |||||
Total foreign provision | 25.9 | 141.9 | 124.8 | |||||||
Provision for income taxes | $ | 54.9 | $ | 194.3 | $ | 128.0 |
For the Year Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates and cumulative effect of a change in accounting principle multiplied by the United States federal statutory rate | $ | (228.7 | ) | $ | (395.0 | ) | $ | 197.5 | ||
Differences in income taxes on foreign earnings, losses and remittances | 10.2 | (34.0 | ) | (46.5 | ) | |||||
Valuation allowance adjustments | 259.4 | 275.2 | 13.3 | |||||||
Research and development credits | (11.4 | ) | (22.6 | ) | (16.6 | ) | ||||
Goodwill impairment | 1.0 | 354.4 | — | |||||||
Investment credit / grants | (6.7 | ) | (22.8 | ) | (7.4 | ) | ||||
Other | 31.1 | 39.1 | (12.3 | ) | ||||||
Provision for income taxes | $ | 54.9 | $ | 194.3 | $ | 128.0 |
December 31, | |||||||
2006 | 2005 | ||||||
Deferred income tax assets: | |||||||
Tax loss carryforwards | $ | 451.1 | $ | 259.0 | |||
Tax credit carryforwards | 140.1 | 85.7 | |||||
Retirement benefit plans | 113.5 | 90.1 | |||||
Accrued liabilities | 66.7 | 71.7 | |||||
Reserves related to current assets | 41.1 | 29.7 | |||||
Self-insurance reserves | 19.6 | 20.6 | |||||
Defined benefit plan liability adjustments | 84.0 | 39.5 | |||||
Deferred compensation | 15.3 | 20.2 | |||||
Recoverable customer engineering and tooling | — | 57.5 | |||||
Long-term asset basis differences | 102.2 | — | |||||
Derivative instruments and hedging | 8.2 | 22.0 | |||||
Other | 0.2 | — | |||||
1,042.0 | 696.0 | ||||||
Valuation allowance | (843.9 | ) | (478.3 | ) | |||
$ | 198.1 | $ | 217.7 |
December 31, | |||||||
2006 | 2005 | ||||||
Deferred income tax liabilities: | |||||||
Long-term asset basis differences | $ | — | $ | (137.4 | ) | ||
Recoverable customer engineering and tooling | (14.7 | ) | — | ||||
Undistributed earnings of foreign subsidiaries | (106.4 | ) | (86.8 | ) | |||
Other | — | (4.3 | ) | ||||
$ | (121.1 | ) | $ | (228.5 | ) | ||
Net deferred income tax asset (liability) | $ | 77.0 | $ | (10.8 | ) |
December 31, | |||||||
2006 | 2005 | ||||||
Deferred income tax assets: | |||||||
Current | $ | 83.3 | $ | 138.6 | |||
Long-term | 110.5 | 76.0 | |||||
Deferred income tax liabilities: | |||||||
Current | (20.8 | ) | (33.3 | ) | |||
Long-term | (96.0 | ) | (192.1 | ) | |||
Net deferred income tax asset (liability) | $ | 77.0 | $ | (10.8 | ) |
December 31, | |||||||||||||
Pension | Other Postretirement | ||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 788.3 | $ | 630.8 | $ | 265.5 | $ | 222.1 | |||||
Service cost | 50.3 | 41.0 | 12.7 | 11.7 | |||||||||
Interest cost | 44.2 | 37.6 | 15.0 | 13.5 | |||||||||
Amendments | 3.5 | 5.6 | — | (1.0 | ) | ||||||||
Actuarial (gain) loss | (30.5 | ) | 96.0 | (16.3 | ) | 22.4 | |||||||
Benefits paid | (24.9 | ) | (21.6 | ) | (9.1 | ) | (7.8 | ) | |||||
Curtailment (gain) loss | (4.6 | ) | (1.7 | ) | — | 0.1 | |||||||
Special termination benefits | 1.7 | 0.1 | 0.4 | 0.3 | |||||||||
Settlements | — | (1.5 | ) | — | — | ||||||||
Acquisitions, new plans and other | 22.5 | 0.5 | — | — | |||||||||
Translation adjustment | 10.4 | 1.5 | (0.3 | ) | 4.2 | ||||||||
Benefit obligation at end of year | $ | 860.9 | $ | 788.3 | $ | 267.9 | $ | 265.5 |
December 31, | |||||||||||||
Pension | Other Postretirement | ||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 474.2 | $ | 394.5 | $ | — | $ | — | |||||
Actual return on plan assets | 42.7 | 45.6 | — | — | |||||||||
Employer contributions | 69.5 | 48.7 | 9.1 | 7.8 | |||||||||
Benefits paid | (24.9 | ) | (21.6 | ) | (9.1 | ) | (7.8 | ) | |||||
Settlements | — | (1.5 | ) | — | — | ||||||||
Acquisitions, new plans and other | 11.5 | 0.2 | — | — | |||||||||
Translation adjustment | 0.6 | 8.3 | — | — | |||||||||
Fair value of plan assets at end of year | $ | 573.6 | $ | 474.2 | $ | — | $ | — | |||||
Funded status | $ | (287.3 | ) | $ | (314.1 | ) | $ | (267.9 | ) | $ | (265.5 | ) | |
Contributions between September 30 and December 31 | 11.9 | 15.8 | 2.1 | 1.8 | |||||||||
(275.4 | ) | (298.3 | ) | (265.8 | ) | (263.7 | ) | ||||||
Unrecognized net actuarial loss | 182.9 | 111.3 | |||||||||||
Unrecognized net transition (asset) obligation | (0.2 | ) | 8.9 | ||||||||||
Unrecognized prior service cost (credit) | 50.5 | (37.1 | ) | ||||||||||
Net amount recognized | $ | (275.4 | ) | $ | (65.1 | ) | $ | (265.8 | ) | $ | (180.6 | ) | |
Amounts recognized in the consolidated balance sheets: | |||||||||||||
Accrued liabilities | $ | (4.9 | ) | $ | (19.8 | ) | $ | (10.0 | ) | $ | (7.6 | ) | |
Other long-term liabilities | (270.5 | ) | (208.8 | ) | (255.8 | ) | (173.0 | ) | |||||
Other long-term assets (intangible asset) | 48.5 | — | |||||||||||
Accumulated other comprehensive loss | 115.0 | — | |||||||||||
Net amount recognized | $ | (275.4 | ) | $ | (65.1 | ) | $ | (265.8 | ) | $ | (180.6 | ) |
No. 158, these previously unrecognized items are to be recorded in accumulated other comprehensive loss when the recognition provisions are adopted. The Company adopted the recognition provisions as of December 31, 2006, and the funded status of its defined benefit plans is reflected in its consolidated balance sheet as of December 31, 2006. In accordance with the transition provisions of SFAS No. 158, prior periods have not been restated. The incremental effect of applying the recognition provisions of SFAS No. 158 on the Company’s consolidated balance sheet as of December 31, 2006, is shown below (in millions):
Before Adoption of SFAS No. 158 | Adjustments | After Adoption of SFAS No. 158 | ||||||||
Intangible assets (other long-term assets) | $ | 45.7 | $ | (45.7 | ) | $ | — | |||
Liability for defined benefit plan obligations (current and long-term liabilities) | (420.3 | ) | (120.9 | ) | (541.2 | ) | ||||
Accumulated other comprehensive loss — (stockholders’ equity) | 97.6 | 166.6 | 264.2 |
Pension | Other Postretirement | ||||||
Net actuarial loss | $ | 150.1 | $ | 91.8 | |||
Net transition (asset) obligation | (0.1 | ) | 7.8 | ||||
Prior service cost (credit) | 47.9 | (33.3 | ) | ||||
$ | 197.9 | $ | 66.3 |
Pension | Other Postretirement | ||||||
Amortization of actuarial loss | $ | 3.1 | $ | 4.5 | |||
Amortization of net transition (asset) obligation | (0.1 | ) | 1.0 | ||||
Amortization of prior service cost (credit) | 4.7 | (3.5 | ) | ||||
$ | 7.7 | $ | 2.0 |
For the Year Ended December 31, | |||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | ||||||||||||||
Service cost | $ | 50.3 | $ | 41.0 | $ | 36.7 | $ | 12.7 | $ | 11.7 | $ | 13.1 | |||||||
Interest cost | 44.2 | 37.6 | 32.2 | 15.0 | 13.5 | 12.3 | |||||||||||||
Expected return on plan assets | (39.4 | ) | (30.2 | ) | (24.3 | ) | — | — | — | ||||||||||
Amortization of actuarial loss | 7.1 | 3.0 | 2.8 | 5.8 | 3.6 | 3.9 | |||||||||||||
Amortization of transition (asset) obligation | (0.1 | ) | (0.2 | ) | (0.3 | ) | 1.0 | 1.1 | 1.2 | ||||||||||
Amortization of prior service cost (credit) | 5.4 | 5.4 | 4.3 | (3.7 | ) | (3.1 | ) | (2.8 | ) | ||||||||||
Special termination benefits | 1.7 | — | 0.1 | 0.4 | 0.3 | 0.2 | |||||||||||||
Settlement loss | — | 1.0 | 0.5 | — | — | — | |||||||||||||
Curtailment (gain) loss | 0.9 | 0.5 | 1.9 | — | 1.4 | (7.7 | ) | ||||||||||||
Net periodic benefit cost | $ | 70.1 | $ | 58.1 | $ | 53.9 | $ | 31.2 | $ | 28.5 | $ | 20.2 |
December 31, | |||||||||
Pension | Other Postretirement | ||||||||
2006 | 2005 | 2006 | 2005 | ||||||
Discount rate: | |||||||||
Domestic plans | 6.00 | % | 5.75 | % | 5.90 | % | 5.70 | % | |
Foreign plans | 5.00 | % | 5.00 | % | 5.30 | % | 5.30 | % | |
Rate of compensation increase: | |||||||||
Domestic plans | 3.75 | % | 3.75 | % | N/A | N/A | |||
Foreign plans | 4.00 | % | 3.25 | % | N/A | N/A |
For the Year Ended December 31, | |||||||||||||
Pension | Other Postretirement | ||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | ||||||||
Discount rate: | |||||||||||||
Domestic plans | 5.75 | % | 6.00 | % | 6.25 | % | 5.70 | % | 6.00 | % | 6.25 | % | |
Foreign plans | 5.00 | % | 6.00 | % | 6.25 | % | 5.30 | % | 6.50 | % | 6.50 | % | |
Expected return on plan assets: | |||||||||||||
Domestic plans | 8.25 | % | 7.75 | % | 7.75 | % | N/A | N/A | N/A | ||||
Foreign plans | 6.90 | % | 7.00 | % | 7.00 | % | N/A | N/A | N/A | ||||
Rate of compensation increase: | |||||||||||||
Domestic plans | 3.75 | % | 3.00 | % | 3.00 | % | N/A | N/A | N/A | ||||
Foreign plans | 3.90 | % | 3.25 | % | 3.25 | % | N/A | N/A | N/A |
December 31, | |||||
2006 | 2005 | ||||
Equity securities: | |||||
Domestic plans | 69 | % | 71 | % | |
Foreign plans | 58 | % | 59 | % | |
Debt securities: | |||||
Domestic plans | 28 | % | 27 | % | |
Foreign plans | 36 | % | 38 | % | |
Cash and other: | |||||
Domestic plans | 3 | % | 2 | % | |
Foreign plans | 6 | % | 3 | % |
Pension | Other Postretirement | |||||
2007 | $ | 27.1 | $ | 10.0 | ||
2008 | 29.0 | 10.7 | ||||
2009 | 31.1 | 11.5 | ||||
2010 | 34.8 | 12.2 | ||||
2011 | 37.6 | 12.6 | ||||
Five years thereafter | 241.9 | 73.5 |
Stock Options | Price Range | |||
Outstanding as of January 1, 2004 | 4,002,625 | $15.50 – $55.33 | ||
Expired or cancelled | (14,450 | ) | $15.50 – $54.22 | |
Exercised | (693,495 | ) | $15.50 – $54.22 | |
Outstanding as of December 31, 2004 | 3,294,680 | $22.12 – $55.33 | ||
Expired or cancelled | (176,800 | ) | $22.12 – $54.22 | |
Exercised | (134,475 | ) | $22.12 – $54.22 | |
Outstanding as of December 31, 2005 | 2,983,405 | $22.12 – $55.33 | ||
Expired or cancelled | (186,100 | ) | $22.12 – $54.22 | |
Exercised | (7,000 | ) | $22.12 | |
Outstanding as of December 31, 2006 | 2,790,305 | $22.12 – $55.33 |
Range of exercise prices �� | $ | 22.12 – 27.25 | $ | 33.00 – 39.83 | $ | 41.83 – 42.32 | $ | 54.22 – 55.33 | ||||
Options outstanding and exercisable: | ||||||||||||
Number outstanding and exercisable | 215,475 | 795,080 | 1,389,300 | 390,450 | ||||||||
Weighted average remaining contractual life (years) | 3.16 | 3.56 | 5.42 | 1.56 | ||||||||
Weighted average exercise price | $ | 22.58 | $ | 36.98 | $ | 41.83 | $ | 54.27 |
Stock Appreciation Rights(1) | Restricted Stock Units | Performance Shares(2) | |||||
Outstanding as of January 1, 2004 | — | 1,394,716 | 256,158 | ||||
Granted | — | 954,637 | 53,193 | ||||
Expired or cancelled | — | (39,332 | ) | (6,664 | ) | ||
Distributed | — | (476,337 | ) | (93,660 | ) | ||
Outstanding as of December 31, 2004 | — | 1,833,684 | 209,027 | ||||
Granted | 1,215,046 | 605,811 | 56,733 | ||||
Expired or cancelled | — | (74,528 | ) | (67,452 | ) | ||
Distributed | — | (130,845 | ) | (74,636 | ) | ||
Outstanding as of December 31, 2005 | 1,215,046 | 2,234,122 | 123,672 | ||||
Granted | 642,285 | 406,086 | 130,655 | ||||
Expired or cancelled | (91,002 | ) | (146,045 | ) | (84,418 | ) | |
Distributed or exercised | (14,475 | ) | (529,592 | ) | — | ||
Outstanding as of December 31, 2006 | 1,751,854 | 1,964,571 | 169,909 |
tier II suppliers against whom the Company has sought or will seek contribution. In this regard, in the first quarter of 2007, the Company received notice of a potential warranty claim concerning a component produced by a tier II supplier and incorporated into a product supplied by the Company. The alleged non-conformity is not safety-related. The Company is continuing to work with the customer and the tier II supplier to evaluate the matter and determine the appropriate corrective action, if any. The Company has also placed its tier II supplier on notice of the potential claim and of the Company’s intention to seek full contribution and reimbursement for any loss. The Company carries insurance for certain legal matters, including product liability claims, but such coverage may be limited. The Company does not maintain insurance for product warranty or recall matters.
Balance as of January 1, 2005 | $ | 43.4 | ||
Expense, net | 16.7 | |||
Settlements | (26.0 | ) | ||
Foreign currency translation and other | (1.7 | ) | ||
Balance as of December 31, 2005 | 32.4 | |||
Expense, net | 17.5 | |||
Settlements | (12.4 | ) | ||
Foreign currency translation and other | 3.4 | |||
Balance as of December 31, 2006 | $ | 40.9 |
UT Automotive are subject to environmental liabilities which may be significant. The Company obtained agreements and indemnities with respect to certain environmental liabilities from UTC in connection with its acquisition of UT Automotive. UTC manages and directly funds these environmental liabilities pursuant to its agreements and indemnities with the Company.
2007 | $ | 93.7 | |
2008 | 75.6 | ||
2009 | 65.3 | ||
2010 | 52.9 | ||
2011 | 43.5 | ||
2012 and thereafter | 71.3 | ||
Total | $ | 402.3 |
2006 | |||||||||||||||
Seating | Electronic and Electrical | Interior | Other | Consolidated | |||||||||||
Revenues from external customers | $ | 11,624.8 | $ | 2,996.9 | $ | 3,217.2 | $ | — | $ | 17,838.9 | |||||
Segment earnings(1) | 604.0 | 102.5 | (183.8 | ) | (241.7 | ) | 281.0 | ||||||||
Depreciation and amortization | 167.3 | 110.1 | 93.8 | 21.0 | 392.2 | ||||||||||
Capital expenditures | 161.1 | 77.0 | 98.7 | 10.8 | 347.6 | ||||||||||
Total assets | 4,386.4 | 2,374.5 | 528.3 | 561.3 | 7,850.5 |
2005 | ||||||||||||||||
Seating | Electronic and Electrical | Interior | Other | Consolidated | ||||||||||||
Revenues from external customers | $ | 11,035.0 | $ | 2,956.6 | $ | 3,097.6 | $ | — | $ | 17,089.2 | ||||||
Segment earnings(1) | 323.3 | 180.0 | (191.1 | ) | (206.8 | ) | 105.4 | |||||||||
Depreciation and amortization | 150.7 | 106.0 | 116.6 | 20.1 | 393.4 | |||||||||||
Capital expenditures | 229.2 | 102.9 | 190.9 | 45.4 | 568.4 | |||||||||||
Total assets | 3,985.2 | 2,122.4 | 1,506.8 | 674.0 | 8,288.4 |
2005 | ||||||||||||||||
Seating | Electronic and Electrical | Interior | Other | Consolidated | ||||||||||||
Revenues from external customers | $ | 11,314.6 | $ | 2,680.4 | $ | 2,965.0 | $ | — | $ | 16,960.0 | ||||||
Segment earnings(1) | 682.1 | 210.9 | 85.1 | (209.7 | ) | 768.4 | ||||||||||
Depreciation and amortization | 133.4 | 89.9 | 108.9 | 22.9 | 355.1 | |||||||||||
Capital expenditures | 208.6 | 116.4 | 86.9 | 17.1 | 429.0 | |||||||||||
Total assets | 4,172.7 | 2,122.4 | 2,403.6 | 1,070.8 | 9,944.4 |
For the Year Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Segment earnings | $ | 522.7 | $ | 312.2 | $ | 978.1 | ||||
Corporate and geographic headquarters and elimination of intercompany activity (“Other”) | (241.7 | ) | (206.8 | ) | (209.7 | ) | ||||
Income before goodwill impairment charges, loss on divestiture of Interior business, interest, other expense, provision for income taxes, minority interests in consolidated subsidiaries, equity in net (income) loss of affiliates and cumulative effect of a change in accounting principle | 281.0 | 105.4 | 768.4 | |||||||
Goodwill impairment charges | 2.9 | 1,012.8 | — | |||||||
Loss on divestiture of Interior business | 636.0 | — | — | |||||||
Interest expense | 209.8 | 183.2 | 165.5 | |||||||
Other expense, net | 85.7 | 38.0 | 38.6 | |||||||
Income (loss) before provision for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and cumulative effect of a change in accounting principle | $ | (653.4 | ) | $ | (1,128.6 | ) | $ | 564.3 |
For the Year Ended December 31, | |||||||||
2006 | 2005 | 2004 | |||||||
Revenues from external customers: | |||||||||
United States | $ | 6,624.3 | $ | 6,252.2 | $ | 6,200.7 | |||
Canada | 1,375.3 | 1,374.1 | 1,317.8 | ||||||
Germany | 2,034.3 | 2,123.4 | 2,026.0 | ||||||
Mexico | 1,789.5 | 1,595.6 | 1,475.7 | ||||||
Other countries | 6,015.5 | 5,743.9 | 5,939.8 | ||||||
Total | $ | 17,838.9 | $ | 17,089.2 | $ | 16,960.0 |
December 31, | ||||||
2006 | 2005 | |||||
Tangible long-lived assets: | ||||||
United States | $ | 472.6 | $ | 563.3 | ||
Canada | 51.5 | 50.6 | ||||
Germany | 161.3 | 185.1 | ||||
Mexico | 168.2 | 153.9 | ||||
Other countries | 618.1 | 661.8 | ||||
Total | $ | 1,471.7 | $ | 1,614.7 |
For the Year Ended December 31, | |||||||
2006 | 2005 | 2004 | |||||
General Motors Corporation | 31.9 | % | 28.3 | % | 31.4 | % | |
Ford Motor Company | 22.6 | 24.7 | 24.1 | ||||
DaimlerChrysler | 10.3 | 11.4 | 11.8 | ||||
BMW | 7.4 | 7.6 | 7.5 |
For the Year Ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
Proceeds from (repayments of) securitizations | $ | (150.0 | ) | $ | 150.0 | $ | — | |||
Proceeds from collections reinvested in securitizations | 4,476.2 | 4,288.1 | 4,664.4 | |||||||
Servicing fees received | 6.1 | 5.3 | 5.5 |
Thirteen Weeks Ended | |||||||||||||
April 1, 2006 | July 1, 2006 | September 30, 2006 | December 31, 2006 | ||||||||||
Net sales | $ | 4,678.5 | $ | 4,810.2 | $ | 4,069.7 | $ | 4,280.5 | |||||
Gross profit | 219.2 | 284.1 | 186.8 | 237.6 | |||||||||
Goodwill impairment charges | — | 2.9 | — | — | |||||||||
Loss on divestiture of Interior business | — | — | 28.7 | 607.3 | |||||||||
Income (loss) before cumulative effect of a change in accounting principle | 15.0 | (6.4 | ) | (74.0 | ) | (645.0 | ) | ||||||
Net income (loss) | 17.9 | (6.4 | ) | (74.0 | ) | (645.0 | ) | ||||||
Basic net income (loss) per share before cumulative effect of a change in accounting accounting principle | 0.22 | (0.10 | ) | (1.10 | ) | (8.90 | ) | ||||||
Basic net income (loss) per share | 0.27 | (0.10 | ) | (1.10 | ) | (8.90 | ) | ||||||
Diluted net income (loss) per share before cumulative effect of a change in accounting accounting principle | 0.22 | (0.10 | ) | (1.10 | ) | (8.90 | ) | ||||||
Diluted net income (loss) per share | 0.26 | (0.10 | ) | (1.10 | ) | (8.90 | ) |
Thirteen Weeks Ended | |||||||||||||
April 2, 2005 | July 2, 2005 | October 1, 2005 | December 31, 2005 | ||||||||||
Net sales | $ | 4,286.0 | $ | 4,419.3 | $ | 3,986.6 | $ | 4,397.3 | |||||
Gross profit | 199.9 | 220.8 | 86.4 | 228.9 | |||||||||
Goodwill impairment charges | — | — | 670.0 | 342.8 | |||||||||
Net income (loss) | 15.6 | (44.4 | ) | (750.1 | ) | (602.6 | ) | ||||||
Basic net income (loss) per share | 0.23 | (0.66 | ) | (11.17 | ) | (8.97 | ) | ||||||
Diluted net income (loss) per share | 0.23 | (0.66 | ) | (11.17 | ) | (8.97 | ) |
December 31, 2006 | |||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | |||||||||||
(in millions) | |||||||||||||||
ASSETS | |||||||||||||||
Current Assets: | |||||||||||||||
Cash and cash equivalents | $ | 195.8 | $ | 4.0 | $ | 302.9 | $ | — | $ | 502.7 | |||||
Accounts receivable | 12.7 | 243.5 | 1,750.7 | — | 2,006.9 | ||||||||||
Inventories | 15.2 | 136.9 | 429.4 | — | 581.5 | ||||||||||
Current assets of business held for sale | 77.1 | 217.1 | 133.6 | — | 427.8 | ||||||||||
Other | 45.9 | 29.9 | 295.6 | — | 371.4 | ||||||||||
Total current assets | 346.7 | 631.4 | 2,912.2 | — | 3,890.3 | ||||||||||
Long-Term Assets: | |||||||||||||||
Property, plant and equipment, net | 230.9 | 284.1 | 956.7 | — | 1,471.7 | ||||||||||
Goodwill, net | 454.5 | 551.1 | 991.1 | — | 1,996.7 | ||||||||||
Investments in subsidiaries | 3,691.2 | 3,257.4 | — | (6,948.6 | ) | — | |||||||||
Other | 233.7 | 24.1 | 234.0 | — | 491.8 | ||||||||||
Total long-term assets | 4,610.3 | 4,116.7 | 2,181.8 | (6,948.6 | ) | 3,960.2 | |||||||||
$ | 4,957.0 | $ | 4,748.1 | $ | 5,094.0 | $ | (6,948.6 | ) | $ | 7,850.5 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current Liabilities: | |||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 39.3 | $ | — | $ | 39.3 | |||||
Accounts payable and drafts | 157.0 | 395.7 | 1,764.7 | — | 2,317.4 | ||||||||||
Other accrued liabilities | 322.3 | 145.8 | 631.2 | — | 1,099.3 | ||||||||||
Current liabilities of business held for sale | 60.4 | 226.1 | 119.2 | — | 405.7 | ||||||||||
Current portion of long-term debt | 6.0 | — | 19.6 | — | 25.6 | ||||||||||
Total current liabilities | 545.7 | 767.6 | 2,574.0 | — | 3,887.3 | ||||||||||
Long-Term Liabilities: | |||||||||||||||
Long-term debt | 2,413.2 | — | 21.3 | — | 2,434.5 | ||||||||||
Long-term liabilities of business held for sale | — | 0.1 | 48.4 | — | 48.5 | ||||||||||
Intercompany accounts, net | 1,193.7 | 503.1 | (1,696.8 | ) | — | — | |||||||||
Other | 202.4 | 176.5 | 499.3 | — | 878.2 | ||||||||||
Total long-term liabilities | 3,809.3 | 679.7 | (1,127.8 | ) | — | 3,361.2 | |||||||||
Stockholders’ Equity | 602.0 | 3,300.8 | 3,647.8 | (6,948.6 | ) | 602.0 | |||||||||
$ | 4,957.0 | $ | 4,748.1 | $ | 5,094.0 | $ | (6,948.6 | ) | $ | 7,850.5 |
December 31, 2005 | |||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | |||||||||||
(in millions) | |||||||||||||||
ASSETS | |||||||||||||||
Current Assets: | |||||||||||||||
Cash and cash equivalents | $ | 38.6 | $ | 4.8 | $ | 153.9 | $ | — | $ | 197.3 | |||||
Accounts receivable | 46.1 | 208.7 | 1,745.3 | — | 2,000.1 | ||||||||||
Inventories | 24.6 | 176.9 | 394.1 | — | 595.6 | ||||||||||
Current assets of business held for sale | 228.7 | 264.3 | 114.7 | — | 607.7 | ||||||||||
Other | 151.4 | 68.5 | 225.8 | — | 445.7 | ||||||||||
Total current assets | 489.4 | 723.2 | 2,633.8 | — | 3,846.4 | ||||||||||
Long-Term Assets: | |||||||||||||||
Property, plant and equipment, net | 216.7 | 479.8 | 918.2 | — | 1,614.7 | ||||||||||
Goodwill, net | 454.5 | 536.5 | 948.8 | — | 1,939.8 | ||||||||||
Long-term assets of business held for sale | 108.5 | 267.3 | 109.4 | — | 485.2 | ||||||||||
Investments in subsidiaries | 3,274.0 | 2,895.0 | — | (6,169.0 | ) | — | |||||||||
Other | 104.9 | 26.9 | 270.5 | — | 402.3 | ||||||||||
Total long-term assets | 4,158.6 | 4,205.5 | 2,246.9 | (6,169.0 | ) | 4,442.0 | |||||||||
$ | 4,648.0 | $ | 4,928.7 | $ | 4,880.7 | $ | (6,169.0 | ) | $ | 8,288.4 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current Liabilities: | |||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 23.4 | $ | — | $ | 23.4 | |||||
Accounts payable and drafts | 223.0 | 560.2 | 1,732.8 | — | 2,516.0 | ||||||||||
Other accrued liabilities | 238.8 | 161.2 | 608.6 | — | 1,008.6 | ||||||||||
Current liabilities of business held for sale | 169.6 | 275.7 | 104.0 | — | 549.3 | ||||||||||
Current portion of long-term debt | 2.1 | 2.1 | 5.2 | — | 9.4 | ||||||||||
Total current liabilities | 633.5 | 999.2 | 2,474.0 | — | 4,106.7 | ||||||||||
Long-Term Liabilities: | |||||||||||||||
Long-term debt | 2,194.7 | 8.4 | 40.0 | — | 2,243.1 | ||||||||||
Long-term liabilities of business held for sale | — | 0.3 | 27.3 | — | 27.6 | ||||||||||
Intercompany accounts, net | 410.0 | 1,012.5 | (1,422.5 | ) | — | — | |||||||||
Other | 298.8 | 157.7 | 343.5 | — | 800.0 | ||||||||||
Total long-term liabilities | 2,903.5 | 1,178.9 | (1,011.7 | ) | — | 3,070.7 | |||||||||
Stockholders’ Equity | 1,111.0 | 2,750.6 | 3,418.4 | (6,169.0 | ) | 1,111.0 | |||||||||
$ | 4,648.0 | $ | 4,928.7 | $ | 4,880.7 | $ | (6,169.0 | ) | $ | 8,288.4 |
For the Year Ended December 31, 2006 | ||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||
(in millions) | ||||||||||||||||
Net sales | $ | 1,580.3 | $ | 6,889.8 | $ | 12,729.4 | $ | (3,360.6 | ) | $ | 17,838.9 | |||||
Cost of sales | 1,691.5 | 6,755.6 | 11,824.7 | (3,360.6 | ) | 16,911.2 | ||||||||||
Selling, general and administrative expenses | 240.5 | 75.0 | 331.2 | — | 646.7 | |||||||||||
Goodwill impairment charges | — | 2.9 | — | — | 2.9 | |||||||||||
Loss on divestiture of Interior business | 240.4 | 259.6 | 136.0 | — | 636.0 | |||||||||||
Interest (income) expense | (114.4 | ) | 126.1 | 198.1 | — | 209.8 | ||||||||||
Intercompany (income) expense, net | (281.2 | ) | 77.4 | 203.8 | — | — | ||||||||||
Other expense, net | 27.6 | 48.8 | 9.3 | — | 85.7 | |||||||||||
Income (loss) before provision (benefit) for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries | (224.1 | ) | (455.6 | ) | 26.3 | — | (653.4 | ) | ||||||||
Provision (benefit) for income taxes | 5.4 | (67.4 | ) | 116.9 | — | 54.9 | ||||||||||
Minority interests in consolidated subsidiaries | — | — | 18.3 | — | 18.3 | |||||||||||
Equity in net (income) loss of affiliates | (12.7 | ) | (5.2 | ) | 1.7 | — | (16.2 | ) | ||||||||
Equity in net (income) loss of subsidiaries | 493.6 | (80.1 | ) | — | (413.5 | ) | — | |||||||||
Loss before cumulative effect of a change in accounting principle | (710.4 | ) | (302.9 | ) | (110.6 | ) | 413.5 | (710.4 | ) | |||||||
Cumulative effect of a change in accounting principle | 2.9 | — | — | — | 2.9 | |||||||||||
Net loss | $ | (707.5 | ) | $ | (302.9 | ) | $ | (110.6 | ) | $ | 413.5 | $ | (707.5 | ) |
For the Year Ended December 31, 2005 | ||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||
(in millions) | ||||||||||||||||
Net sales | $ | 1,657.2 | $ | 6,599.0 | $ | 11,350.1 | $ | (2,517.1 | ) | $ | 17,089.2 | |||||
Cost of sales | 1,727.4 | 6,568.4 | 10,574.5 | (2,517.1 | ) | 16,353.2 | ||||||||||
Selling, general and administrative expenses | 309.6 | 2.8 | 318.2 | — | 630.6 | |||||||||||
Goodwill impairment charges | — | 1,012.8 | — | — | 1.012.8 | |||||||||||
Interest expense | 45.9 | 94.2 | 43.1 | — | 183.2 | |||||||||||
Intercompany (income) expense, net | (373.7 | ) | 308.2 | 65.5 | — | — | ||||||||||
Other expense, net | 6.4 | 19.4 | 12.2 | — | 38.0 | |||||||||||
Income (loss) before provision (benefit) for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries | (58.4 | ) | (1,406.8 | ) | 336.6 | — | (1,128.6 | ) | ||||||||
Provision (benefit) for income taxes | 270.2 | (140.6 | ) | 64.7 | — | 194.3 | ||||||||||
Minority interests in consolidated subsidiaries | — | — | 7.2 | — | 7.2 | |||||||||||
Equity in net (income) loss of affiliates | 40.6 | (3.5 | ) | 14.3 | — | 51.4 | ||||||||||
Equity in net (income) loss of subsidiaries | 1,012.3 | (193.9 | ) | — | (818.4 | ) | — | |||||||||
Net income (loss) | $ | (1,381.5 | ) | $ | (1,068.8 | ) | $ | 250.4 | $ | 818.4 | $ | (1,381.5 | ) |
For the Year Ended December 31, 2004 | ||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||
(in millions) | ||||||||||||||||
Net sales | $ | 1,652.1 | $ | 6,937.7 | $ | 10,990.3 | $ | (2,620.1 | ) | $ | 16,960.0 | |||||
Cost of sales | 1,739.9 | 6,270.1 | 10,168.0 | (2,620.1 | ) | 15,557.9 | ||||||||||
Selling, general and administrative expenses | 205.3 | 129.5 | 298.9 | — | 633.7 | |||||||||||
Interest expense | 30.2 | 100.5 | 34.8 | — | 165.5 | |||||||||||
Intercompany (income) expense, net | (317.2 | ) | 339.4 | (22.2 | ) | — | — | |||||||||
Other (income) expense, net | (17.8 | ) | 29.5 | 26.9 | — | 38.6 | ||||||||||
Income before provision (benefit) for income taxes, minority interests in consolidated subsidiaries and equity in net (income) loss of affiliates and subsidiaries | 11.7 | 68.7 | 483.9 | — | 564.3 | |||||||||||
Provision (benefit) for income taxes | (17.9 | ) | 25.1 | 120.8 | — | 128.0 | ||||||||||
Minority interests in consolidated subsidiaries | — | — | 16.7 | — | 16.7 | |||||||||||
Equity in net (income) loss of affiliates | 0.3 | (3.3 | ) | 0.4 | — | (2.6 | ) | |||||||||
Equity in net income of subsidiaries | (392.9 | ) | (305.8 | ) | — | 698.7 | — | |||||||||
Net income | $ | 422.2 | $ | 352.7 | $ | 346.0 | $ | (698.7 | ) | $ | 422.2 |
For the Year Ended December 31, 2006 | ||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||
(in millions) | ||||||||||||||||
Net Cash Provided by Operating Activities | $ | 28.9 | $ | (102.0 | ) | $ | 358.4 | $ | — | $ | 285.3 | |||||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment | (47.8 | ) | (94.8 | ) | (205.0 | ) | — | (347.6 | ) | |||||||
Cost of acquisitions, net of cash acquired | — | (24.9 | ) | (5.6 | ) | — | (30.5 | ) | ||||||||
Net proceeds from disposition of businesses and other assets | (1.4 | ) | 22.5 | 44.8 | — | 65.9 | ||||||||||
Net cash used in investing activities | (49.2 | ) | (97.2 | ) | (165.8 | ) | — | (312.2 | ) | |||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Issuance of senior notes | 900.0 | — | — | — | 900.0 | |||||||||||
Repayment of senior notes | (1,356.9 | ) | — | — | — | (1,356.9 | ) | |||||||||
Primary credit facility borrowings, net | 597.0 | — | — | — | 597.0 | |||||||||||
Other long-term debt repayments, net | (44.8 | ) | (10.5 | ) | 18.8 | — | (36.5 | ) | ||||||||
Short-term debt repayments, net | — | — | (11.8 | ) | — | (11.8 | ) | |||||||||
Change in intercompany accounts | (102.0 | ) | 192.6 | (90.6 | ) | — | — | |||||||||
Net proceeds from the sale of common stock | 199.2 | — | — | — | 199.2 | |||||||||||
Dividends paid | (16.8 | ) | — | — | — | (16.8 | ) | |||||||||
Proceeds from exercise of stock options | 0.2 | — | — | — | 0.2 | |||||||||||
Increase in drafts | 1.6 | (2.3 | ) | 3.7 | — | 3.0 | ||||||||||
Net cash provided by financing activities | 177.5 | 179.8 | (79.9 | ) | — | 277.4 | ||||||||||
Effect of foreign currency translation | — | 18.6 | 36.3 | — | 54.9 | |||||||||||
Net Change in Cash and Cash Equivalents | 157.2 | (0.8 | ) | 149.0 | — | 305.4 | ||||||||||
Cash and Cash Equivalents at Beginning of Year | 38.6 | 4.8 | 153.9 | — | 197.3 | |||||||||||
Cash and Cash Equivalents at End of Year | $ | 195.8 | $ | 4.0 | $ | 302.9 | $ | — | $ | 502.7 |
For the Year Ended December 31, 2005 | ||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||
(in millions) | ||||||||||||||||
Net Cash Provided by Operating Activities | $ | (260.7 | ) | $ | (15.8 | ) | $ | 837.3 | $ | — | $ | 560.8 | ||||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment | (123.0 | ) | (235.9 | ) | (209.5 | ) | — | (568.4 | ) | |||||||
Cost of acquisitions, net of cash acquired | — | — | (11.8 | ) | — | (11.8 | ) | |||||||||
Net proceeds from disposition of businesses and other assets | 7.8 | 16.1 | 9.4 | — | 33.3 | |||||||||||
Other, net | 1.9 | 0.6 | 2.8 | — | 5.3 | |||||||||||
Net cash used in investing activities | (113.3 | ) | (219.2 | ) | (209.1 | ) | — | (541.6 | ) | |||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Repayment of senior notes | (600.0 | ) | — | — | — | (600.0 | ) | |||||||||
Primary credit facility borrowings, net | 400.0 | — | — | — | 400.0 | |||||||||||
Other long-term debt repayments, net | (17.7 | ) | (2.2 | ) | (12.8 | ) | — | (32.7 | ) | |||||||
Short-term debt repayments, net | — | — | (23.8 | ) | — | (23.8 | ) | |||||||||
Change in intercompany accounts | 601.1 | 234.5 | (835.6 | ) | — | — | ||||||||||
Dividends paid | (67.2 | ) | — | — | — | (67.2 | ) | |||||||||
Proceeds from exercise of stock options | 4.7 | — | — | — | 4.7 | |||||||||||
Repurchase of common stock | (25.4 | ) | — | — | — | (25.4 | ) | |||||||||
Decrease in drafts | (7.1 | ) | 1.5 | 2.3 | — | (3.3 | ) | |||||||||
Other, net | 0.7 | — | — | — | 0.7 | |||||||||||
Net cash used in financing activities | 289.1 | 233.8 | (869.9 | ) | — | (347.0 | ) | |||||||||
Effect of foreign currency translation | — | 2.2 | (62.0 | ) | — | (59.8 | ) | |||||||||
Net Change in Cash and Cash Equivalents | (84.9 | ) | 1.0 | (303.7 | ) | — | (387.6 | ) | ||||||||
Cash and Cash Equivalents at Beginning of Year | 123.5 | 3.8 | 457.6 | — | 584.9 | |||||||||||
Cash and Cash Equivalents at End of Year | $ | 38.6 | $ | 4.8 | $ | 153.9 | $ | — | $ | 197.3 |
For the Year Ended December 31, 2004 | ||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||
(in millions) | ||||||||||||||||
Net Cash Provided by Operating Activities | $ | 100.6 | $ | 64.6 | $ | 510.7 | $ | — | $ | 675.9 | ||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment | (71.6 | ) | (146.2 | ) | (211.2 | ) | — | (429.0 | ) | |||||||
Cost of acquisitions, net of cash acquired | (14.1 | ) | (3.3 | ) | (85.6 | ) | — | (103.0 | ) | |||||||
Net proceeds from disposition of businesses and other assets | 15.3 | 13.2 | 27.8 | — | 56.3 | |||||||||||
Other, net | 0.8 | 0.1 | 2.3 | — | 3.2 | |||||||||||
Net cash used in investing activities | (69.6 | ) | (136.2 | ) | (266.7 | ) | — | (472.5 | ) | |||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Issuance of senior notes | 399.2 | — | — | — | 399.2 | |||||||||||
Other long-term debt repayments, net | (11.4 | ) | 1.0 | (39.0 | ) | — | (49.4 | ) | ||||||||
Short-term debt repayments, net | (0.3 | ) | (0.1 | ) | (29.4 | ) | — | (29.8 | ) | |||||||
Change in intercompany accounts | (189.1 | ) | 66.2 | 122.9 | — | — | ||||||||||
Dividends paid | (68.0 | ) | — | — | — | (68.0 | ) | |||||||||
Proceeds from exercise of stock options | 24.4 | — | — | — | 24.4 | |||||||||||
Repurchase of common stock | (97.7 | ) | — | — | — | (97.7 | ) | |||||||||
Decrease in drafts | (6.1 | ) | (5.3 | ) | (1.2 | ) | — | (12.6 | ) | |||||||
Net cash provided by financing activities | 51.0 | 61.8 | 53.3 | — | 166.1 | |||||||||||
Effect of foreign currency translation | — | 4.5 | 41.6 | — | 46.1 | |||||||||||
Net Change in Cash and Cash Equivalents | 82.0 | (5.3 | ) | 338.9 | — | 415.6 | ||||||||||
Cash and Cash Equivalents at Beginning of Year | 41.5 | 9.1 | 118.7 | — | 169.3 | |||||||||||
Cash and Cash Equivalents at End of Year | $ | 123.5 | $ | 3.8 | $ | 457.6 | $ | — | $ | 584.9 |
December 31, | |||||||
2006 | 2005 | ||||||
Amended and restated primary credit facility | $ | 997.0 | $ | 400.0 | |||
Senior notes | 1,417.6 | 1,795.0 | |||||
Other long-term debt | 4.6 | 12.3 | |||||
2,419.2 | 2,207.3 | ||||||
Less — current portion | (6.0 | ) | (4.2 | ) | |||
$ | 2,413.2 | $ | 2,203.1 |
Year | Maturities | ||
2007 | $ | 6.0 | |
2008 | 79.3 | ||
2009 | 47.2 | ||
2010 | 6.0 | ||
2011 | 6.0 |
Balance as of Beginning of Year | Additions | Retirements | Other Changes | Balance as of End of Year | |||||||||||
(in millions) | |||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2006: | |||||||||||||||
Valuation of accounts deducted from related assets: | |||||||||||||||
Allowance for doubtful accounts | $ | 20.4 | $ | 7.7 | $ | (12.2 | ) | $ | (1.0 | ) | $ | 14.9 | |||
Reserve for unmerchantable inventories | 85.7 | 28.4 | (23.3 | ) | (3.7 | ) | 87.1 | ||||||||
Restructuring reserves | 25.5 | 92.3 | (75.9 | ) | — | 41.9 | |||||||||
Allowance for deferred tax assets | 478.3 | 364.6 | (28.4 | ) | 29.4 | 843.9 | |||||||||
$ | 609.9 | $ | 493.0 | $ | (139.8 | ) | $ | 24.7 | $ | 987.8 | |||||
FOR THE YEAR ENDED DECEMBER 31, 2005: | |||||||||||||||
Valuation of accounts deducted from related assets: | |||||||||||||||
Allowance for doubtful accounts | $ | 26.7 | $ | 12.5 | $ | (15.8 | ) | $ | (3.0 | ) | $ | 20.4 | |||
Reserve for unmerchantable inventories | 86.4 | 33.8 | (23.3 | ) | (11.2 | ) | 85.7 | ||||||||
Restructuring reserves | 20.9 | 86.8 | (80.3 | ) | (1.9 | ) | 25.5 | ||||||||
Allowance for deferred tax assets | 277.7 | 276.3 | (44.5 | ) | (31.2 | ) | 478.3 | ||||||||
$ | 411.7 | $ | 409.4 | $ | (163.9 | ) | $ | (47.3 | ) | $ | 609.9 | ||||
FOR THE YEAR ENDED DECEMBER 31, 2004: | |||||||||||||||
Valuation of accounts deducted from related assets: | |||||||||||||||
Allowance for doubtful accounts | $ | 30.6 | $ | 11.7 | $ | (16.0 | ) | $ | 0.4 | $ | 26.7 | ||||
Reserve for unmerchantable inventories | 55.8 | 45.5 | (16.0 | ) | 1.1 | 86.4 | |||||||||
Restructuring reserves | 8.1 | 18.8 | (6.0 | ) | — | 20.9 | |||||||||
Allowance for deferred tax assets | 220.8 | 84.4 | (27.5 | ) | — | 277.7 | |||||||||
$ | 315.3 | $ | 160.4 | $ | (65.5 | ) | $ | 1.5 | $ | 411.7 |
March 31, 2007 | December 31, 2006 | ||||||
(unaudited) | |||||||
(in millions, except share data) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 330.4 | $ | 502.7 | |||
Accounts receivable | 2,412.7 | 2,006.9 | |||||
Inventories | 599.0 | 581.5 | |||||
Current assets of business held for sale | 38.3 | 427.8 | |||||
Other | 317.6 | 371.4 | |||||
Total current assets | 3,698.0 | 3,890.3 | |||||
Long-Term Assets: | |||||||
Property, plant and equipment, net | 1,425.9 | 1,471.7 | |||||
Goodwill, net | 2,006.6 | 1,996.7 | |||||
Other | 530.5 | 491.8 | |||||
Total long-term assets | 3,963.0 | 3,960.2 | |||||
$ | 7,661.0 | $ | 7,850.5 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term borrowings | $ | 11.5 | $ | 39.3 | |||
Accounts payable and drafts | 2,480.3 | 2,317.4 | |||||
Accrued liabilities | 1,152.8 | 1,099.3 | |||||
Current liabilities of business held for sale | 16.7 | 405.7 | |||||
Current portion of long-term debt | 26.4 | 25.6 | |||||
Total current liabilities | 3,687.7 | 3,887.3 | |||||
Long-Term Liabilities: | |||||||
Long-term debt | 2,431.8 | 2,434.5 | |||||
Long-term liabilities of business held for sale | 21.6 | 48.5 | |||||
Other | 827.4 | 878.2 | |||||
Total long-term liabilities | 3,280.8 | 3,361.2 | |||||
Stockholders’ Equity: | |||||||
Common stock, $0.01 par value, 150,000,000 shares authorized; 82,166,506 shares and 81,984,306 shares issued as of March 31, 2007 and December 31, 2006, respectively | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,357.3 | 1,338.1 | |||||
Common stock held in treasury, 5,508,097 shares as of March 31, 2007, and 5,732,316 shares as of December 31, 2006, at cost | (201.9 | ) | (210.2 | ) | |||
Retained deficit | (308.0 | ) | (362.5 | ) | |||
Accumulated other comprehensive loss | (155.6 | ) | (164.1 | ) | |||
Total stockholders’ equity | 692.5 | 602.0 | |||||
$ | 7,661.0 | $ | 7,850.5 |
Three Months Ended | |||||||
March 31, 2007 | April 1, 2006 | ||||||
(unaudited; in millions, except per share data) | |||||||
Net sales | $ | 4,406.1 | $ | 4,678.5 | |||
Cost of sales | 4,095.2 | 4,459.3 | |||||
Selling, general and administrative expenses | 126.5 | 165.0 | |||||
Loss on divestiture of Interior business | 25.6 | — | |||||
Interest expense | 51.5 | 47.7 | |||||
Other (income) expense, net | 25.0 | (8.3 | ) | ||||
Income before provision (benefit) for income taxes and cumulative effect of a change in accounting principle | 82.3 | 14.8 | |||||
Provision (benefit) for income taxes | 32.4 | (0.2 | ) | ||||
Income before cumulative effect of a change in accounting principle | 49.9 | 15.0 | |||||
Cumulative effect of a change in accounting principle | — | 2.9 | |||||
Net income | $ | 49.9 | $ | 17.9 | |||
Basic net income per share: | |||||||
Income before cumulative effect of a change in accounting principle | $ | 0.65 | $ | 0.22 | |||
Cumulative effect of a change in accounting principle | — | 0.05 | |||||
Basic net income per share | $ | 0.65 | $ | 0.27 | |||
Diluted net income per share: | |||||||
Income before cumulative effect of a change in accounting principle | $ | 0.64 | $ | 0.22 | |||
Cumulative effect of a change in accounting principle | — | 0.04 | |||||
Diluted net income per share | $ | 0.64 | $ | 0.26 |
Three Months Ended | |||||||
March 31, 2007 | April 1, 2006 | ||||||
(unaudited; in millions) | |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 49.9 | $ | 17.9 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Cumulative effect of a change in accounting principle | — | (2.9 | ) | ||||
Loss on divestiture of Interior business | 25.6 | — | |||||
Depreciation and amortization | 74.5 | 97.8 | |||||
Net change in recoverable customer engineering and tooling | 23.8 | 128.6 | |||||
Net change in working capital items | (150.4 | ) | (235.8 | ) | |||
Net change in sold accounts receivable | (38.9 | ) | 38.1 | ||||
Other, net | (26.3 | ) | (4.3 | ) | |||
Net cash provided by (used in) operating activities | (41.8 | ) | 39.4 | ||||
Cash Flows from Investing Activities: | |||||||
Additions to property, plant and equipment | (29.2 | ) | (92.6 | ) | |||
Divestiture of Interior business | (57.3 | ) | — | ||||
Other, net | (28.6 | ) | 27.9 | ||||
Net cash used in investing activities | (115.1 | ) | (64.7 | ) | |||
Cash Flows from Financing Activities: | |||||||
Long-term debt repayments, net | (3.6 | ) | (6.1 | ) | |||
Short-term debt repayments, net | (11.0 | ) | — | ||||
Dividends paid | — | (16.8 | ) | ||||
Proceeds from exercise of stock options | 5.7 | — | |||||
Increase (decrease) in drafts | (13.5 | ) | 1.1 | ||||
Net cash used in financing activities | (22.4 | ) | (21.8 | ) | |||
Effect of foreign currency translation | 7.0 | 10.7 | |||||
Net Change in Cash and Cash Equivalents | (172.3 | ) | (36.4 | ) | |||
Cash and Cash Equivalents as of Beginning of Period | 502.7 | 207.6 | |||||
Cash and Cash Equivalents as of End of Period | $ | 330.4 | $ | 171.2 | |||
Changes in Working Capital Items: | |||||||
Accounts receivable | $ | (434.2 | ) | $ | (428.2 | ) | |
Inventories | (20.6 | ) | 14.0 | ||||
Accounts payable | 224.5 | 103.9 | |||||
Accrued liabilities and other | 79.9 | 74.5 | |||||
Net change in working capital items | $ | (150.4 | ) | $ | (235.8 | ) | |
Supplementary Disclosure: | |||||||
Cash paid for interest | $ | 36.9 | $ | 26.6 | |||
Cash paid for income taxes | $ | 45.7 | $ | 42.9 |
March 31, 2007 | December 31, 2006 | |||||
Cash and cash equivalents | $ | 12.8 | $ | 19.2 | ||
Accounts receivable | 17.3 | 284.5 | ||||
Inventories | 3.9 | 69.2 | ||||
Other current assets | 4.3 | 54.9 | ||||
Current assets of business held for sale | $ | 38.3 | $ | 427.8 | ||
Accounts payable and drafts | $ | 8.4 | $ | 323.7 | ||
Accrued liabilities | 5.4 | 79.8 | ||||
Current portion of long-term debt | 2.9 | 2.2 | ||||
Current liabilities of business held for sale | 16.7 | 405.7 | ||||
Long-term debt | 18.2 | 19.6 | ||||
Other long-term liabilities | 3.4 | 28.9 | ||||
Long-term liabilities of business held for sale | 21.6 | 48.5 | ||||
Total liabilities of business held for sale | $ | 38.3 | $ | 454.2 |
Accrual as of December 31, 2006 | 2007 Charges | 2007 Utilization | Accrual as of March 31, 2007 | ||||||||||||
Cash | Non-cash | ||||||||||||||
Employee termination benefits | $ | 36.4 | $ | 24.1 | $ | (36.9 | ) | $ | — | $ | 23.6 | ||||
Asset impairments | — | 0.4 | — | (0.4 | ) | — | |||||||||
Contract termination costs | 3.4 | 1.2 | (1.4 | ) | — | 3.2 | |||||||||
Other related costs | — | 1.8 | (1.8 | ) | — | — | |||||||||
Total | $ | 39.8 | $ | 27.5 | $ | (40.1 | ) | $ | (0.4 | ) | $ | 26.8 |
March 31, 2007 | December 31, 2006 | |||||
Raw materials | $ | 439.9 | $ | 439.9 | ||
Work-in-process | 36.2 | 35.6 | ||||
Finished goods | 122.9 | 106.0 | ||||
Inventories | $ | 599.0 | $ | 581.5 |
March 31, 2007 | December 31, 2006 | ||||||
Land | $ | 132.6 | $ | 133.5 | |||
Buildings and improvements | 607.5 | 559.1 | |||||
Machinery and equipment | 2,024.1 | 2,081.3 | |||||
Construction in progress | 22.0 | 12.0 | |||||
Total property, plant and equipment | 2,786.2 | 2,785.9 | |||||
Less – accumulated depreciation | (1,360.3 | ) | (1,314.2 | ) | |||
Net property, plant and equipment | $ | 1,425.9 | $ | 1,471.7 |
Seating | Electronic and Electrical | Total | |||||||
Balance as of January 1, 2007 | $ | 1,060.7 | $ | 936.0 | $ | 1,996.7 | |||
Foreign currency translation and other | 7.6 | 2.3 | 9.9 | ||||||
Balance as of March 31, 2007 | $ | 1,068.3 | $ | 938.3 | $ | 2,006.6 |
March 31, 2007 | December 31, 2006 | |||||||||||
Long-Term Debt | Weighted Average Interest Rate | Long-Term Debt | Weighted Average Interest Rate | |||||||||
Primary Credit Facility | $ | 997.0 | 7.49 | % | $ | 997.0 | 7.49 | % | ||||
8.50% Senior Notes, due 2013 | 300.0 | 8.50 | % | 300.0 | 8.50 | % | ||||||
8.75% Senior Notes, due 2016 | 600.0 | 8.75 | % | 600.0 | 8.75 | % | ||||||
5.75% Senior Notes, due 2014 | 399.4 | 5.635 | % | 399.3 | 5.635 | % | ||||||
8.125% Euro-denominated Senior Notes, due 2008 | 74.2 | 8.125 | % | 73.3 | 8.125 | % | ||||||
8.11% Senior Notes, due 2009 | 41.4 | 8.11 | % | 41.4 | 8.11 | % | ||||||
Zero-coupon Convertible Senior Notes, due 2022 | 0.7 | 4.75 | % | 3.6 | 4.75 | % | ||||||
Other | 45.5 | 7.03 | % | 45.5 | 7.06 | % | ||||||
2,458.2 | 2,460.1 | |||||||||||
Current portion | (26.4 | ) | (25.6 | ) | ||||||||
Long-term debt | $ | 2,431.8 | $ | 2,434.5 |
March 31, 2007 | |||
Consolidated indebtedness | $ | 2,139.3 | |
Cash and cash equivalents | 330.4 | ||
Reported debt | $ | 2,469.7 |
Three Months Ended March 31, 2007 | ||||
Consolidated operating profit | $ | 266.6 | ||
Depreciation and amortization | (74.5 | ) | ||
Consolidated interest expense | (45.3 | ) | ||
Costs related to divestiture of interior business | (33.8 | ) | ||
Other expense, net (excluding certain amounts related to asset-backed securitization facility) | (26.3 | ) | ||
Restructuring charges | (15.8 | ) | ||
Other excluded items | 27.0 | |||
Other non-cash items | (15.6 | ) | ||
Income before provision for income taxes | $ | 82.3 | ||
Consolidated interest expense | $ | 45.3 | ||
Certain amounts related to asset-backed securitization facility | 1.3 | |||
Amortization of deferred financing fees | 2.3 | |||
Bank facility and other fees | 2.6 | |||
Reported interest expense | $ | 51.5 |
Pension | Other Postretirement | ||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
March 31, 2007 | April 1, 2006 | March 31, 2007 | April 1, 2006 | ||||||||||
Service cost | $ | 8.0 | $ | 12.6 | $ | 2.9 | $ | 3.2 | |||||
Interest cost | 10.4 | 10.8 | 3.7 | 3.7 | |||||||||
Expected return on plan assets | (10.2 | ) | (9.7 | ) | — | — | |||||||
Amortization of actuarial loss | 0.8 | 1.8 | 1.1 | 1.4 | |||||||||
Amortization of transition obligation | — | — | 0.2 | 0.2 | |||||||||
Amortization of prior service cost | 1.1 | 1.3 | (0.9 | ) | (0.9 | ) | |||||||
Curtailment gain, net | (36.9 | ) | — | (13.4 | ) | — | |||||||
Special termination benefits | 5.7 | 0.1 | 0.8 | 0.1 | |||||||||
Net periodic benefit cost (gain) | $ | (21.1 | ) | $ | 16.9 | $ | (5.6 | ) | $ | 7.7 |
March 31, 2007 | April 1, 2006 | ||||||
Other expense | $ | 28.6 | $ | 18.4 | |||
Other income | (3.6 | ) | (26.7 | ) | |||
Other (income) expense, net | $ | 25.0 | $ | (8.3 | ) |
Three Months Ended | ||||||
March 31, 2007 | April 1, 2006 | |||||
Weighted average common shares outstanding | 76,410,482 | 67,216,992 | ||||
Dilutive effect of common stock equivalents | 1,579,369 | 724,075 | ||||
Diluted shares outstanding | 77,989,851 | 67,941,067 | ||||
Diluted net income per share | $ | 0.64 | $ | 0.26 |
Three Months Ended | ||||
March 31, 2007 | April 1, 2006 | |||
Options | ||||
Antidilutive options | 2,236,780 | 2,907,005 | ||
Exercise price | $35.93 – $55.33 | $22.12 – $55.33 | ||
Restricted stock units | — | 821,237 | ||
Performance units | — | 48,563 | ||
Stock appreciation rights | 642,285 | 1,138,114 |
Three Months Ended | |||||||
March 31, 2007 | April 1, 2006 | ||||||
Net income | $ | 49.9 | $ | 17.9 | |||
Other comprehensive income (loss): | |||||||
Derivative instruments and hedging activities | (5.0 | ) | (5.8 | ) | |||
Foreign currency translation adjustment | 13.5 | 15.6 | |||||
Other comprehensive income | 8.5 | 9.8 | |||||
Comprehensive income | $ | 58.4 | $ | 27.7 |
March 31, 2007 | December 31, 2006 | |||||
Current | $ | 61.4 | $ | 87.7 | ||
Long-term | 112.8 | 116.2 | ||||
Recoverable customer engineering and tooling | $ | 174.2 | $ | 203.9 |
Balance as of January 1, 2007 | $ | 40.9 | ||
Expense | 1.4 | |||
Income related to favorable settlements | (2.7 | ) | ||
Settlements | (5.8 | ) | ||
Foreign currency translation and other | (1.2 | ) | ||
Balance as of March 31, 2007 | $ | 32.6 |
Three Months Ended March 31, 2007 | |||||||||||||||
Seating | Electronic and Electrical | Interior | Other | Consolidated | |||||||||||
Revenues from external customers | $ | 2,994.2 | $ | 788.7 | $ | 623.2 | $ | — | $ | 4,406.1 | |||||
Segment earnings | 197.1 | 17.5 | 8.8 | (39.0 | ) | 184.4 | |||||||||
Depreciation and amortization | 40.8 | 28.3 | 1.3 | 4.1 | 74.5 | ||||||||||
Capital expenditures | 20.2 | 8.6 | 0.1 | 0.3 | 29.2 | ||||||||||
Total assets | 4,371.0 | 2,277.7 | 134.7 | 877.6 | 7,661.0 |
Three Months Ended April 1, 2006 | |||||||||||||||
Seating | Electronic and Electrical | Interior | Other | Consolidated | |||||||||||
Revenues from external customers | $ | 2,992.5 | $ | 787.3 | $ | 898.7 | $ | — | $ | 4,678.5 | |||||
Segment earnings | 125.9 | 53.1 | (59.5 | ) | (65.3 | ) | 54.2 | ||||||||
Depreciation and amortization | 40.4 | 26.8 | 24.8 | 5.8 | 97.8 | ||||||||||
Capital expenditures | 36.8 | 15.7 | 33.1 | 7.0 | 92.6 | ||||||||||
Total assets | 4,170.6 | 2,178.1 | 1,511.1 | 621.5 | 8,481.3 |
Three Months Ended | |||||||
March 31, 2007 | April 1, 2006 | ||||||
Segment earnings | $ | 184.4 | $ | 54.2 | |||
Loss on divestiture of Interior business | 25.6 | — | |||||
Interest expense | 51.5 | 47.7 | |||||
Other (income) expense, net | 25.0 | (8.3 | ) | ||||
Income before provision (benefit) for income taxes and cumulative effect of a change in accounting principle | $ | 82.3 | $ | 14.8 |
Three Months Ended | ||||||
March 31, 2007 | April 1, 2006 | |||||
Proceeds from collections reinvested in securitizations | $ | 932.7 | $ | 1,071.6 | ||
Servicing fees received | 1.2 | 1.5 |
March 31, 2007 | |||||||||||||||
Parent | Guarantors | Non- guarantors | Eliminations | Consolidated | |||||||||||
(unaudited; in millions) | |||||||||||||||
ASSETS | |||||||||||||||
Current Assets: | |||||||||||||||
Cash and cash equivalents | $ | 100.0 | $ | 6.2 | $ | 224.2 | $ | — | $ | 330.4 | |||||
Accounts receivable | 26.5 | 333.9 | 2,052.3 | — | 2,412.7 | ||||||||||
Inventories | 14.5 | 128.7 | 455.8 | — | 599.0 | ||||||||||
Current assets of business held for sale | — | — | 38.3 | — | 38.3 | ||||||||||
Other | 33.8 | 19.8 | 264.0 | — | 317.6 | ||||||||||
Total current assets | 174.8 | 488.6 | 3,034.6 | — | 3,698.0 | ||||||||||
Long-Term Assets: | |||||||||||||||
Property, plant and equipment, net | 199.4 | 284.9 | 941.6 | — | 1,425.9 | ||||||||||
Goodwill, net | 454.5 | 551.1 | 1,001.0 | — | 2,006.6 | ||||||||||
Investments in subsidiaries | 3,890.6 | 2,343.1 | — | (6,233.7 | ) | — | |||||||||
Other | 237.8 | 24.4 | 268.3 | — | 530.5 | ||||||||||
Total long-term assets | 4,782.3 | 3,203.5 | 2,210.9 | (6,233.7 | ) | 3,963.0 | |||||||||
$ | 4,957.1 | $ | 3,692.1 | $ | 5,245.5 | $ | (6,233.7 | ) | $ | 7,661.0 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current Liabilities: | |||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 11.5 | $ | — | $ | 11.5 | |||||
Accounts payable and drafts | 148.0 | 399.5 | 1,932.8 | — | 2,480.3 | ||||||||||
Accrued liabilities | 310.7 | 193.9 | 648.2 | — | 1,152.8 | ||||||||||
Current liabilities of business held for sale | — | — | 16.7 | — | 16.7 | ||||||||||
Current portion of long-term debt | 6.0 | — | 20.4 | — | 26.4 | ||||||||||
Total current liabilities | 464.7 | 593.4 | 2,629.6 | — | 3,687.7 | ||||||||||
Long-Term Liabilities: | |||||||||||||||
Long-term debt | 2,411.2 | — | 20.6 | — | 2,431.8 | ||||||||||
Long-term liabilities of business held for sale | — | — | 21.6 | — | 21.6 | ||||||||||
Intercompany accounts, net | 1,219.6 | 604.0 | (1,823.6 | ) | — | — | |||||||||
Other | 169.1 | 170.6 | 487.7 | — | 827.4 | ||||||||||
Total long-term liabilities | 3,799.9 | 774.6 | (1,293.7 | ) | — | 3,280.8 | |||||||||
Stockholders’ Equity | 692.5 | 2,324.1 | 3,909.6 | (6,233.7 | ) | 692.5 | |||||||||
$ | 4,957.1 | $ | 3,692.1 | $ | 5,245.5 | $ | (6,233.7 | ) | $ | 7,661.0 |
December 31, 2006 | |||||||||||||||
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
(in millions) | |||||||||||||||
ASSETS | |||||||||||||||
Current Assets: | |||||||||||||||
Cash and cash equivalents | $ | 195.8 | $ | 4.0 | $ | 302.9 | $ | — | $ | 502.7 | |||||
Accounts receivable | 12.7 | 243.5 | 1,750.7 | — | 2,006.9 | ||||||||||
Inventories | 15.2 | 136.9 | 429.4 | — | 581.5 | ||||||||||
Current assets of business held for sale | 77.1 | 217.1 | 133.6 | — | 427.8 | ||||||||||
Other | 45.9 | 29.9 | 295.6 | — | 371.4 | ||||||||||
Total current assets | 346.7 | 631.4 | 2,912.2 | — | 3,890.3 | ||||||||||
Long-Term Assets: | |||||||||||||||
Property, plant and equipment, net | 230.9 | 284.1 | 956.7 | — | 1,471.7 | ||||||||||
Goodwill, net | 454.5 | 551.1 | 991.1 | — | 1,996.7 | ||||||||||
Investments in subsidiaries | 3,691.2 | 3,257.4 | — | (6,948.6 | ) | — | |||||||||
Other | 233.7 | 24.1 | 234.0 | — | 491.8 | ||||||||||
Total long-term assets | 4,610.3 | 4,116.7 | 2,181.8 | (6,948.6 | ) | 3,960.2 | |||||||||
$ | 4,957.0 | $ | 4,748.1 | $ | 5,094.0 | $ | (6,948.6 | ) | $ | 7,850.5 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current Liabilities: | |||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 39.3 | $ | — | $ | 39.3 | |||||
Accounts payable and drafts | 157.0 | 395.7 | 1,764.7 | — | 2,317.4 | ||||||||||
Accrued liabilities | 322.3 | 145.8 | 631.2 | — | 1,099.3 | ||||||||||
Current liabilities of business held for sale | 60.4 | 226.1 | 119.2 | — | 405.7 | ||||||||||
Current portion of long-term debt | 6.0 | — | 19.6 | — | 25.6 | ||||||||||
Total current liabilities | 545.7 | 767.6 | 2,574.0 | — | 3,887.3 | ||||||||||
Long-Term Liabilities: | |||||||||||||||
Long-term debt | 2,413.2 | — | 21.3 | — | 2,434.5 | ||||||||||
Long-term liabilities of business held for sale | — | 0.1 | 48.4 | — | 48.5 | ||||||||||
Intercompany accounts, net | 1,193.7 | 503.1 | (1,696.8 | ) | — | — | |||||||||
Other | 202.4 | 176.5 | 499.3 | — | 878.2 | ||||||||||
Total long-term liabilities | 3,809.3 | 679.7 | (1,127.8 | ) | — | 3,361.2 | |||||||||
Stockholders’ Equity | 602.0 | 3,300.8 | 3,647.8 | (6,948.6 | ) | 602.0 | |||||||||
$ | 4,957.0 | $ | 4,748.1 | $ | 5,094.0 | $ | (6,948.6 | ) | $ | 7,850.5 |
For the Three Months Ended March 31, 2007 | |||||||||||||||
Parent | Guarantors | Non- guarantors | Eliminations | Consolidated | |||||||||||
(unaudited; in millions) | |||||||||||||||
Net sales | $ | 288.3 | $ | 1,525.5 | $ | 3,614.7 | $ | (1,022.4 | ) | $ | 4,406.1 | ||||
Cost of sales | 298.9 | 1,499.1 | 3,319.6 | (1,022.4 | ) | 4,095.2 | |||||||||
Selling, general and administrative expenses | 34.1 | 14.0 | 78.4 | — | 126.5 | ||||||||||
Loss on divestiture of Interior business | (17.2 | ) | 28.2 | 14.6 | — | 25.6 | |||||||||
Interest expense | 21.8 | 28.3 | 1.4 | — | 51.5 | ||||||||||
Intercompany (income) expense, net | (79.6 | ) | 16.8 | 62.8 | — | — | |||||||||
Other expense, net | 2.0 | 10.0 | 13.0 | — | 25.0 | ||||||||||
Income (loss) before income taxes and equity in net income of subsidiaries | 28.3 | (70.9 | ) | 124.9 | — | 82.3 | |||||||||
Provision (benefit) for income taxes | — | (9.8 | ) | 42.2 | — | 32.4 | |||||||||
Equity in net income of subsidiaries | (21.6 | ) | (5.9 | ) | — | 27.5 | — | ||||||||
Net income (loss) | $ | 49.9 | $ | (55.2 | ) | $ | 82.7 | $ | (27.5 | ) | $ | 49.9 |
For the Three Months Ended April 1, 2006 | ||||||||||||||||
Parent | Guarantors | Non- guarantors | Eliminations | Consolidated | ||||||||||||
(unaudited; in millions) | ||||||||||||||||
Net sales | $ | 475.6 | $ | 1,889.0 | $ | 3,152.5 | $ | (838.6 | ) | $ | 4,678.5 | |||||
Cost of sales | 500.6 | 1,850.8 | 2,946.5 | (838.6 | ) | 4,459.3 | ||||||||||
Selling, general and administrative expenses | 59.4 | 27.3 | 78.3 | — | 165.0 | |||||||||||
Interest expense | 15.1 | 23.5 | 9.1 | — | 47.7 | |||||||||||
Intercompany (income) expense, net | (131.8 | ) | 87.5 | 44.3 | — | — | ||||||||||
Other (income) expense, net | (31.3 | ) | 12.0 | 11.0 | — | (8.3 | ) | |||||||||
Income (loss) before income taxes, equity in net (income) loss of subsidiaries and cumulative effect of a change in accounting principle | 63.6 | (112.1 | ) | 63.3 | — | 14.8 | ||||||||||
Provision (benefit) for income taxes | (2.9 | ) | 1.7 | 1.0 | — | (0.2 | ) | |||||||||
Equity in net (income) loss of subsidiaries | 51.5 | (41.2 | ) | — | (10.3 | ) | — | |||||||||
Income (loss) before cumulative effect of a change in accounting principle | 15.0 | (72.6 | ) | 62.3 | 10.3 | 15.0 | ||||||||||
Cumulative effect of a change in accounting principle | 2.9 | — | — | — | 2.9 | |||||||||||
Net income | $ | 17.9 | $ | (72.6 | ) | $ | 62.3 | $ | 10.3 | $ | 17.9 |
For the Three Months Ended March 31, 2007 | ||||||||||||||||
Parent | Guarantors | Non- guarantors | Eliminations | Consolidated | ||||||||||||
(unaudited; in millions) | ||||||||||||||||
Net cash used in operating activities | $ | 15.2 | $ | (54.2 | ) | $ | (2.8 | ) | $ | — | $ | (41.8 | ) | |||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment | (2.8 | ) | (17.7 | ) | (8.7 | ) | — | (29.2 | ) | |||||||
Divestiture of Interior business | (6.5 | ) | (12.9 | ) | (37.9 | ) | — | (57.3 | ) | |||||||
Other, net | 0.6 | 0.3 | (29.5 | ) | — | (28.6 | ) | |||||||||
Net cash used in investing activities | (8.7 | ) | (30.3 | ) | (76.1 | ) | — | (115.1 | ) | |||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Long-term debt repayments, net | (2.9 | ) | — | (0.7 | ) | — | (3.6 | ) | ||||||||
Short-term debt repayments, net | — | — | (11.0 | ) | — | (11.0 | ) | |||||||||
Proceeds from exercise of stock options | 5.7 | — | — | — | 5.7 | |||||||||||
Decrease in drafts | (1.0 | ) | (2.5 | ) | (10.0 | ) | — | (13.5 | ) | |||||||
Change in intercompany accounts | (104.1 | ) | 86.5 | 17.6 | — | — | ||||||||||
Net cash used in financing activities | (102.3 | ) | 84.0 | (4.1 | ) | — | (22.4 | ) | ||||||||
Effect of foreign currency translation | — | 2.7 | 4.3 | — | 7.0 | |||||||||||
Net Change in Cash and Cash Equivalents | (95.8 | ) | 2.2 | (78.7 | ) | (172.3 | ) | |||||||||
Cash and Cash Equivalents as of Beginning of Period | 195.8 | 4.0 | 302.9 | — | 502.7 | |||||||||||
Cash and Cash Equivalents as of End of Period | $ | 100.0 | $ | 6.2 | $ | 224.2 | $ | — | $ | 330.4 |
For the Three Months Ended April 1, 2006 | ||||||||||||||||
Parent | Guarantors | Non- guarantors | Eliminations | Consolidated | ||||||||||||
(unaudited; in millions) | ||||||||||||||||
Net cash provided by operating activities | $ | 154.7 | $ | (41.3 | ) | $ | (74.0 | ) | $ | — | $ | 39.4 | ||||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment | (14.4 | ) | (30.6 | ) | (47.6 | ) | (92.6 | ) | ||||||||
Other, net | 31.2 | (3.0 | ) | (0.3 | ) | — | 27.9 | |||||||||
Net cash used in investing activities | 16.8 | (33.6 | ) | (47.9 | ) | — | (64.7 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Long-term debt repayments, net | (2.1 | ) | (0.1 | ) | (3.9 | ) | — | (6.1 | ) | |||||||
Dividends paid | (16.8 | ) | — | — | — | (16.8 | ) | |||||||||
Increase in drafts | 7.6 | (0.6 | ) | (5.9 | ) | — | 1.1 | |||||||||
Change in intercompany accounts | (152.5 | ) | 78.3 | 74.2 | — | — | ||||||||||
Net cash used in financing activities | (163.8 | ) | 77.6 | 64.4 | — | (21.8 | ) | |||||||||
Effect of foreign currency translation | — | 3.7 | 7.0 | — | 10.7 | |||||||||||
Net Change in Cash and Cash Equivalents | 7.7 | 6.4 | (50.5 | ) | (36.4 | ) | ||||||||||
Cash and Cash Equivalents as of Beginning of Period | 38.6 | 4.8 | 164.2 | — | 207.6 | |||||||||||
Cash and Cash Equivalents as of End of Period | $ | 46.3 | $ | 11.2 | $ | 113.7 | $ | — | $ | 171.2 |
March 31, 2007 | December 31, 2006 | ||||||
Amended and restated primary credit facility | $ | 997.0 | $ | 997.0 | |||
Senior notes | 1,415.7 | 1,417.6 | |||||
Other long-term debt | 4.5 | 4.6 | |||||
2,417.2 | 2,419.2 | ||||||
Less — current portion | (6.0 | ) | (6.0 | ) | |||
$ | 2,411.2 | $ | 2,413.2 |
(Exact name of co-registrant as specified in its charter)
(Exact name of co-registrant as specified in its charter)
(Exact name of registrant of guarantee as specified in its charter)
under the Securities Act of 1933, for any and all of our outstanding
7⅛% Senior Notes due 2013.
PART II
Item 21. Exhibits
Exhibit No. | Description | ||
4.1 | Indenture, dated as of February 7, 2005, among American Real Estate Partners, L.P., American Real Estate Finance Corp., AREH, as guarantor and Wilmington Trust Company, as Trustee (incorporated by reference to Exhibit 4.9 to AREP’s Form 8-K (SEC File No. 1-9516), filed on February 10, 2005). | ||
4.2 | Form of 7 1/8% Senior Note due 2013 (incorporated by reference to Exhibit 4.9 to AREP’s Form 8-K (SEC File No. 1-9516), filed on February 10, 2005). | ||
4.3 | Registration Rights Agreement, dated as of January 17, 2007, among American Real Estate Partners, L.P., American Real Estate Finance Corp., AREH and Jefferies & Company (incorporated by reference to Exhibit 4.3 to AREP’s Form 8-K (SEC File No. 1-9516), filed on January 19, 2007). | ||
5.1 | Opinion of Proskauer Rose LLP.(1) | ||
12.1 | Ratio of earnings to fixed charges. | ||
23.1 | Consent of Grant Thornton LLP. | ||
23.2 | Consent of Grant Thornton LLP. | ||
23.3 | Consent of Grant Thornton LLP. | ||
23.4 | Consent of KPMG LLP. | ||
23.5 | Consent of KPMG LLP. | ||
23.6 | Consent of KPMG LLP. | ||
23.7 | Consent of Ernst & Young LLP. | ||
23.8 | Consent of Proskauer Rose LLP (included in Exhibit 5.1).(1) | ||
24.1 | Power of Attorney (included on the signature pages to this S-4). | ||
25.1 | Statement of Eligibility of Trustee.(1) | ||
99.1 | Letter of Transmittal.(1) | ||
99.2 | Notice of Guaranteed Delivery.(1) | ||
99.3 | Letter to Clients.(1) | ||
99.4 | Letter to Brokers.(1) | ||
99.5 | Form of Exchange Agent Agreement by and between AREP and Wilmington Trust Company.(1) |
SIGNATURES
AMERICAN REAL ESTATE PARTNERS, L.P. | ||
By: | American Property Investors, Inc., its general partner | |
By: | /s/ Keith A. Meister | |
Keith A. Meister Principal Executive Officer and Vice Chairman of the Board |
Signature | Title | Date | ||
/s/ Keith A. Meister | Principal Executive Officer | June 21, 2007 | ||
Keith A. Meister | and Vice Chairman of the Board (Principal Executive Officer) | |||
/s/ Andrew Skobe | Chief Financial Officer | June 21, 2007 | ||
Andrew Skobe | (Principal Financial Officer) and Chief Accounting Officer (Principal Accounting Officer) | |||
/s/ Jack G. Wasserman | Director | June 21, 2007 | ||
Jack G. Wasserman | ||||
/s/ William A. Leidesdorf | Director | June 21, 2007 | ||
William A. Leidesdorf | ||||
/s/ James L. Nelson | Director | June 21, 2007 | ||
James L. Nelson | ||||
/s/ Vincent J. Intrieri | Director | June 21, 2007 | ||
Vincent J. Intrieri | ||||
Chairman of the Board | ||||
Carl C. Icahn |
SIGNATURES
AMERICAN REAL ESTATE FINANCE CORP. | ||
By: | /s/ Keith A. Meister | |
Keith A. Meister Principal Executive Officer and Vice Chairman of the Board |
Signature | Title | Date | ||
/s/ Keith A. Meister | Principal Executive Officer | June 21, 2007 | ||
Keith A. Meister | and Vice Chairman of the Board (Principal Executive Officer) | |||
/s/ Andrew Skobe | Chief Financial Officer | June 21, 2007 | ||
Andrew Skobe | (Principal Financial Officer) and Chief Accounting Officer (Principal Accounting Officer) | |||
/s/ Jack G. Wasserman | Director | June 21, 2007 | ||
Jack G. Wasserman | ||||
/s/ William A. Leidesdorf | Director | June 21, 2007 | ||
William A. Leidesdorf | ||||
/s/ James L. Nelson | Director | June 21, 2007 | ||
James L. Nelson | ||||
/s/ Vincent J. Intrieri | Director | June 21, 2007 | ||
Vincent J. Intrieri | ||||
Chairman of the Board | ||||
Carl C. Icahn |
SIGNATURES
AMERICAN REAL ESTATE HOLDINGS LIMITED PARTNERSHIP | ||
By: | /s/ Keith A. Meister | |
Keith A. Meister Principal Executive Officer and Vice Chairman of the Board |
Signature | Title | Date | ||
/s/ Keith A. Meister | Principal Executive Officer | June 21, 2007 | ||
Keith A. Meister | and Vice Chairman of the Board (Principal Executive Officer) | |||
/s/ Andrew Skobe | Chief Financial Officer | June 21, 2007 | ||
Andrew Skobe | (Principal Financial Officer) and Chief Accounting Officer (Principal Accounting Officer) | |||
/s/ Jack G. Wasserman | Director | June 21, 2007 | ||
Jack G. Wasserman | ||||
/s/ William A. Leidesdorf | Director | June 21, 2007 | ||
William A. Leidesdorf | ||||
/s/ James L. Nelson | Director | June 21, 2007 | ||
James L. Nelson | ||||
/s/ Vincent J. Intrieri | Director | June 21, 2007 | ||
Vincent J. Intrieri | ||||
Chairman of the Board | ||||
Carl C. Icahn |