Supplemental Guarantor Disclosure [Text Block] | 15. SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Holdings has no significant assets other than its 100% ownership in AAM, Inc. and Metaldyne Performance Group, Inc. (MPG Inc.), and no direct subsidiaries other than AAM, Inc. and MPG Inc. The 7.75% Notes, 6.625% Notes, 6.50% Notes, 6.25% Notes (due 2025), 6.25% Notes (due 2021) and 5.125% Notes are senior unsecured obligations of AAM, Inc.; all of which are fully and unconditionally guaranteed, on a joint and several basis, by Holdings and substantially all domestic subsidiaries of AAM, Inc. and, as of May 17, 2017, MPG Inc, and substantially all domestic subsidiaries of MPG Inc. These Condensed Consolidating Financial Statements are prepared under the equity method of accounting whereby the investments in subsidiaries are recorded at cost and adjusted for the parent’s share of the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other equity changes. Condensed Consolidating Statements of Income Three Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2017 Net sales External $ — $ 250.0 $ 529.0 $ 945.4 $ — $ 1,724.4 Intercompany — 0.2 80.0 7.0 (87.2 ) — Total net sales — 250.2 609.0 952.4 (87.2 ) 1,724.4 Cost of goods sold — 229.6 546.3 738.0 (87.2 ) 1,426.7 Gross profit — 20.6 62.7 214.4 — 297.7 Selling, general and administrative expenses — 57.8 24.7 19.8 — 102.3 Amortization of intangible assets — 1.5 22.3 0.6 — 24.4 Restructuring and acquisition-related costs — 21.6 — 1.2 — 22.8 Operating income (loss) — (60.3 ) 15.7 192.8 — 148.2 Non-operating income (expense), net — (60.8 ) 5.5 (0.9 ) — (56.2 ) Income (loss) before income taxes — (121.1 ) 21.2 191.9 — 92.0 Income tax expense (benefit) — (29.0 ) 17.8 16.9 — 5.7 Earnings from equity in subsidiaries 86.2 29.9 25.5 — (141.6 ) — Net income (loss) before royalties 86.2 (62.2 ) 28.9 175.0 (141.6 ) 86.3 Royalties — 84.9 1.3 (86.2 ) — — Net income after royalties 86.2 22.7 30.2 88.8 (141.6 ) 86.3 Net income attributable to noncontrolling interests — — — (0.1 ) — (0.1 ) Net income attributable to AAM $ 86.2 $ 22.7 $ 30.2 $ 88.7 $ (141.6 ) $ 86.2 Other comprehensive income, net of tax 47.0 16.7 42.6 51.3 (110.6 ) 47.0 Comprehensive income attributable to AAM $ 133.2 $ 39.4 $ 72.8 $ 140.0 $ (252.2 ) $ 133.2 Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2016 Net sales External $ — $ 274.7 $ 49.9 $ 682.3 $ — $ 1,006.9 Intercompany — 3.7 62.7 4.4 (70.8 ) — Total net sales — 278.4 112.6 686.7 (70.8 ) 1,006.9 Cost of goods sold — 265.4 94.9 536.2 (70.8 ) 825.7 Gross profit — 13.0 17.7 150.5 — 181.2 Selling, general and administrative expenses — 71.3 — 7.3 — 78.6 Amortization of intangible assets — 1.3 — — — 1.3 Operating income (loss) — (59.6 ) 17.7 143.2 — 101.3 Non-operating income (expense), net — (24.9 ) 2.9 0.2 — (21.8 ) Income (loss) before income taxes — (84.5 ) 20.6 143.4 — 79.5 Income tax expense — 7.9 0.1 9.8 — 17.8 Earnings (loss) from equity in subsidiaries 61.7 87.4 (7.1 ) — (142.0 ) — Net income (loss) before royalties 61.7 (5.0 ) 13.4 133.6 (142.0 ) 61.7 Royalties — 66.7 — (66.7 ) — — Net income after royalties 61.7 61.7 13.4 66.9 (142.0 ) 61.7 Net income attributable to noncontrolling interests — — — — — — Net income attributable to AAM $ 61.7 $ 61.7 $ 13.4 $ 66.9 $ (142.0 ) $ 61.7 Other comprehensive income (loss), net of tax (4.3 ) (4.3 ) 1.0 (3.3 ) 6.6 (4.3 ) Comprehensive income attributable to AAM $ 57.4 $ 57.4 $ 14.4 $ 63.6 $ (135.4 ) $ 57.4 Condensed Consolidating Statements of Income Nine Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2017 Net sales External $ — $ 806.9 $ 1,139.8 $ 2,585.4 $ — $ 4,532.1 Intercompany — 2.4 214.7 19.9 (237.0 ) — Total net sales — 809.3 1,354.5 2,605.3 (237.0 ) 4,532.1 Cost of goods sold — 752.2 1,188.0 2,004.1 (237.0 ) 3,707.3 Gross profit — 57.1 166.5 601.2 — 824.8 Selling, general and administrative expenses — 196.0 45.7 47.4 — 289.1 Amortization of intangible assets — 4.3 45.0 1.5 — 50.8 Restructuring and acquisition-related costs — 87.0 — 3.5 90.5 Operating income (loss) — (230.2 ) 75.8 548.8 — 394.4 Non-operating income (expense), net — (148.7 ) 14.9 (14.0 ) — (147.8 ) Income (loss) before income taxes — (378.9 ) 90.7 534.8 — 246.6 Income tax expense (benefit) — (62.2 ) 42.0 35.8 — 15.6 Earnings from equity in subsidiaries 230.8 202.9 41.4 — (475.1 ) — Net income (loss) before royalties 230.8 (113.8 ) 90.1 499.0 (475.1 ) 231.0 Royalties — 253.6 2.6 (256.2 ) — — Net income after royalties 230.8 139.8 92.7 242.8 (475.1 ) 231.0 Net income attributable to noncontrolling interests — — — (0.2 ) — (0.2 ) Net income attributable to AAM $ 230.8 $ 139.8 $ 92.7 $ 242.6 $ (475.1 ) $ 230.8 Other comprehensive income, net of tax 104.5 55.3 74.7 94.8 (224.8 ) 104.5 Comprehensive income attributable to AAM $ 335.3 $ 195.1 $ 167.4 $ 337.4 $ (699.9 ) $ 335.3 Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2016 Net sales External $ — $ 866.3 $ 161.4 $ 1,973.8 $ — $ 3,001.5 Intercompany — 8.1 185.7 12.2 (206.0 ) — Total net sales — 874.4 347.1 1,986.0 (206.0 ) 3,001.5 Cost of goods sold — 833.5 284.3 1,543.1 (206.0 ) 2,454.9 Gross profit — 40.9 62.8 442.9 — 546.6 Selling, general and administrative expenses — 206.8 — 25.0 — 231.8 Amortization of intangible assets — 3.5 — 0.1 — 3.6 Operating income (loss) — (169.4 ) 62.8 417.8 — 311.2 Non-operating income (expense), net — (72.7 ) 8.4 0.7 — (63.6 ) Income (loss) before income taxes — (242.1 ) 71.2 418.5 — 247.6 Income tax expense — 28.9 0.3 24.6 — 53.8 Earnings (loss) from equity in subsidiaries 193.8 266.6 (28.0 ) — (432.4 ) — Net income (loss) before royalties 193.8 (4.4 ) 42.9 393.9 (432.4 ) 193.8 Royalties — 198.2 — (198.2 ) — — Net income after royalties 193.8 193.8 42.9 195.7 (432.4 ) 193.8 Net income attributable to noncontrolling interests — — — — — — Net income attributable to AAM $ 193.8 $ 193.8 $ 42.9 $ 195.7 $ (432.4 ) $ 193.8 Other comprehensive income, net of tax 13.9 13.9 23.2 16.9 (54.0 ) 13.9 Comprehensive income attributable to AAM $ 207.7 $ 207.7 $ 66.1 $ 212.6 $ (486.4 ) $ 207.7 Condensed Consolidating Balance Sheets (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims/Reclassifications Consolidated September 30, 2017 Assets Current assets Cash and cash equivalents $ — $ 188.5 $ 0.1 $ 361.0 $ — $ 549.6 Accounts receivable, net — 134.4 320.2 667.4 — 1,122.0 Intercompany receivables — 3,559.1 465.9 8.0 (4,033.0 ) — Inventories, net — 34.0 151.2 211.4 — 396.6 Prepaid expenses and other — 27.4 12.1 105.0 — 144.5 Total current assets — 3,943.4 949.5 1,352.8 (4,033.0 ) 2,212.7 Property, plant and equipment, net — 234.1 788.5 1,280.1 — 2,302.7 Goodwill — — 1,220.2 434.4 — 1,654.6 Intangible assets, net — 21.9 1,178.1 36.6 — 1,236.6 Intercompany notes and accounts receivable 14.6 — 260.9 — (275.5 ) — Other assets and deferred charges — 717.4 137.2 129.8 (332.7 ) 651.7 Investment in subsidiaries 2,735.0 1,917.2 708.9 — (5,361.1 ) — Total assets $ 2,749.6 $ 6,834.0 $ 5,243.3 $ 3,233.7 $ (10,002.3 ) $ 8,058.3 Liabilities and Stockholders’ Equity Current liabilities Current portion of long-term debt $ — $ — $ — $ 6.8 $ — $ 6.8 Accounts payable — 130.2 238.2 488.0 — 856.4 Intercompany payables 1,313.0 499.7 2,010.2 210.1 (4,033.0 ) — Accrued expenses and other — 183.0 56.3 182.5 — 421.8 Total current liabilities 1,313.0 812.9 2,304.7 887.4 (4,033.0 ) 1,285.0 Intercompany notes and accounts payable — 76.9 — 198.6 (275.5 ) — Long-term debt, net — 4,096.3 4.6 68.4 — 4,169.3 Other long-term liabilities — 742.2 594.0 163.9 (332.7 ) 1,167.4 Total liabilities 1,313.0 5,728.3 2,903.3 1,318.3 (4,641.2 ) 6,621.7 Total AAM Stockholders’ equity 1,432.8 1,105.7 2,340.0 1,911.6 (5,357.3 ) 1,432.8 Noncontrolling interests in subsidiaries 3.8 — — 3.8 (3.8 ) 3.8 Total stockholders’ equity 1,436.6 1,105.7 2,340.0 1,915.4 (5,361.1 ) 1,436.6 Total liabilities and stockholders’ equity $ 2,749.6 $ 6,834.0 $ 5,243.3 $ 3,233.7 $ (10,002.3 ) $ 8,058.3 Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated December 31, 2016 Assets Current assets Cash and cash equivalents $ — $ 84.3 $ 1.6 $ 395.3 $ — $ 481.2 Accounts receivable, net — 126.7 21.9 411.4 — 560.0 Intercompany receivables — 442.6 326.0 9.1 (777.7 ) — Inventories, net — 31.3 21.5 129.5 — 182.3 Prepaid expenses and other — 29.4 0.5 45.9 — 75.8 Total current assets — 714.3 371.5 991.2 (777.7 ) 1,299.3 Property, plant and equipment, net — 213.7 102.9 777.1 — 1,093.7 Goodwill — — 147.8 6.2 — 154.0 Intangible assets, net — 22.8 — 5.7 — 28.5 Intercompany notes and accounts receivable — 343.9 242.2 — (586.1 ) — Other assets and deferred charges — 644.9 39.8 163.7 — 848.4 Investment in subsidiaries 827.6 1,544.4 — — (2,372.0 ) — Total assets $ 827.6 $ 3,484.0 $ 904.2 $ 1,943.9 $ (3,735.8 ) $ 3,423.9 Liabilities and Stockholders’ Equity Current liabilities Current portion of long-term debt $ — $ — $ — $ 3.3 $ — $ 3.3 Accounts payable — 80.6 35.8 265.9 — 382.3 Intercompany payables — 324.8 153.4 299.5 (777.7 ) — Accrued expenses and other — 142.2 4.3 119.4 — 265.9 Total current liabilities — 547.6 193.5 688.1 (777.7 ) 651.5 Intercompany notes and accounts payable 321.8 14.6 7.5 242.2 (586.1 ) — Long-term debt, net — 1,339.7 4.1 57.1 — 1,400.9 Investment in subsidiaries obligation — — 124.7 — (124.7 ) — Other long-term liabilities — 754.5 0.6 110.6 — 865.7 Total liabilities 321.8 2,656.4 330.4 1,098.0 (1,488.5 ) 2,918.1 Total stockholders’ equity 505.8 827.6 573.8 845.9 (2,247.3 ) 505.8 Total liabilities and stockholders’ equity $ 827.6 $ 3,484.0 $ 904.2 $ 1,943.9 $ (3,735.8 ) $ 3,423.9 Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2017 Net cash provided by operating activities $ — $ 276.4 $ 9.0 $ 135.3 $ — $ 420.7 Investing activities Purchases of property, plant and equipment — (43.1 ) (73.3 ) (162.3 ) — (278.7 ) Proceeds from sale of property, plant and equipment — 0.3 0.3 1.1 — 1.7 Purchase buyouts of leased equipment — (12.6 ) — — — (12.6 ) Proceeds from sale of business, net — 7.5 (1.6 ) — — 5.9 Acquisition of business, net of cash acquired — (953.5 ) 64.6 (6.6 ) — (895.5 ) Net cash used in investing activities — (1,001.4 ) (10.0 ) (167.8 ) — (1,179.2 ) Financing activities Net debt activity — 926.1 (0.5 ) (12.1 ) — 913.5 Debt issuance costs — (90.8 ) — — — (90.8 ) Employee stock option exercises — 0.9 — — — 0.9 Purchase of treasury stock (7.0 ) — — — — (7.0 ) Intercompany activity 7.0 (7.0 ) — — — — Net cash provided by (used in) financing activities — 829.2 (0.5 ) (12.1 ) — 816.6 Effect of exchange rate changes on cash — — — 10.3 — 10.3 Net increase (decrease) in cash and cash equivalents — 104.2 (1.5 ) (34.3 ) — 68.4 Cash and cash equivalents at beginning of period — 84.3 1.6 395.3 — 481.2 Cash and cash equivalents at end of period $ — $ 188.5 $ 0.1 $ 361.0 $ — $ 549.6 Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2016 Net cash provided by operating activities $ — $ 114.8 $ 20.9 $ 155.3 $ — $ 291.0 Investing activities Purchases of property, plant and equipment — (25.9 ) (12.0 ) (120.8 ) — (158.7 ) Proceeds from sale of property, plant and equipment — — 0.3 0.4 — 0.7 Proceeds from government grants — — — 2.8 — 2.8 Final distribution of Reserve Yield Plus Fund — 1.0 — — — 1.0 Acquisition of business, net of cash acquired — — (5.6 ) — — (5.6 ) Intercompany activity — — (2.0 ) — 2.0 — Net cash used in investing activities — (24.9 ) (19.3 ) (117.6 ) 2.0 (159.8 ) Financing activities Net debt activity — (0.4 ) (0.3 ) 23.3 — 22.6 Employee stock option exercises — 0.3 — — — 0.3 Purchase of treasury stock (5.3 ) — — — — (5.3 ) Intercompany activity 5.3 (5.3 ) — 2.0 (2.0 ) — Net cash provided by (used in) financing activities — (5.4 ) (0.3 ) 25.3 (2.0 ) 17.6 Effect of exchange rate changes on cash — — — 2.6 — 2.6 Net increase in cash and cash equivalents — 84.5 1.3 65.6 — 151.4 Cash and cash equivalents at beginning of period — 52.0 — 230.5 — 282.5 Cash and cash equivalents at end of period $ — $ 136.5 $ 1.3 $ 296.1 $ — $ 433.9 |