Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-14303 | |
Entity Registrant Name | AMERICAN AXLE & MANUFACTURING HOLDINGS INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-3161171 | |
Entity Address, Address Line One | One Dauch Drive, | |
Entity Address, City or Town | Detroit | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48211-1198 | |
City Area Code | 313 | |
Local Phone Number | 758-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | AXL | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 112,475,824 | |
Entity Central Index Key | 0001062231 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 1,677.4 | $ 1,817 | $ 5,100.9 | $ 5,576.3 |
Cost of goods sold | 1,428.7 | 1,549.6 | 4,381.7 | 4,661.2 |
Gross profit | 248.7 | 267.4 | 719.2 | 915.1 |
Selling, general and administrative expenses | 92.7 | 96.3 | 274.7 | 288.6 |
Amortization of intangible assets | 23.7 | 24.8 | 73.6 | 74.5 |
Impairment charge | 225 | 0 | 225 | 0 |
Restructuring and acquisition-related costs | 11.7 | 11.7 | 36 | 66.8 |
Gain on sale of business | 0 | 0 | 0 | (15.5) |
Operating income (loss) | (104.4) | 134.6 | 109.9 | 500.7 |
Interest expense | (54.3) | (54.9) | (163.9) | (162.5) |
Investment income | 2.2 | 0.6 | 3.4 | 1.6 |
Debt refinancing and redemption costs | (5.1) | 0 | (7.5) | (14.6) |
Gain on settlement of capital lease | 0 | 0 | 0 | 15.6 |
Other expense, net | (2.9) | (4.8) | (9) | (4.6) |
Income (loss) before income taxes | (164.5) | 75.5 | (67.1) | 336.2 |
Income tax expense (benefit) | (40.4) | 11.5 | (37.4) | 31.4 |
Net income (loss) | (124.1) | 64 | (29.7) | 304.8 |
Net income attributable to noncontrolling interests | (0.1) | (0.2) | (0.4) | (0.5) |
Net income (loss) attributable to AAM | $ (124.2) | $ 63.8 | $ (30.1) | $ 304.3 |
Basic earnings (loss) per share | $ (1.10) | $ 0.55 | $ (0.27) | $ 2.65 |
Diluted earnings (loss) per share | $ (1.10) | $ 0.55 | $ (0.27) | $ 2.63 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income (loss) | $ (124.1) | $ 64 | $ (29.7) | $ 304.8 |
Other comprehensive income (loss) | ||||
Defined benefit plans, net of tax (a) | (1.3) | 1 | 0.5 | 14.5 |
Foreign currency translation adjustments | (37.1) | (11.9) | (34.7) | (55) |
Changes in cash flow hedges, net of tax (b) | (6.4) | 12.4 | (24.7) | 19.6 |
Other comprehensive income (loss) | (44.8) | 1.5 | (58.9) | (20.9) |
Comprehensive income (loss) | (168.9) | 65.5 | (88.6) | 283.9 |
Net income attributable to noncontrolling interests | (0.1) | (0.2) | (0.4) | (0.5) |
Comprehensive income (loss) attributable to AAM | $ (169) | $ 65.3 | $ (89) | $ 283.4 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | $ 0.3 | $ (0.3) | $ (0.2) | $ (4.8) |
Other comprehensive income (loss), derivatives qualifying as hedges, tax | $ 1.1 | $ (0.5) | $ 7.3 | $ (1.7) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 375.1 | $ 476.4 |
Accounts receivable, net | 976.9 | 966.5 |
Inventories, net | 403.1 | 459.7 |
Prepaid expenses and other | 130.9 | 127.2 |
Current assets held-for-sale | 312.2 | 0 |
Total current assets | 2,198.2 | 2,029.8 |
Property, plant and equipment, net | 2,326.4 | 2,514.4 |
Deferred income taxes | 61.9 | 45.5 |
Goodwill | 1,127.5 | 1,141.8 |
Other intangible assets, net | 881.5 | 1,111.1 |
GM postretirement cost sharing asset | 223.1 | 219.4 |
Other assets and deferred charges | 497.7 | 448.7 |
Total assets | 7,316.3 | 7,510.7 |
Current liabilities | ||
Current portion of long-term debt | 23.8 | 121.6 |
Accounts payable | 703.7 | 840.2 |
Accrued compensation and benefits | 165.1 | 179 |
Deferred revenue | 22.6 | 44.3 |
Accrued expenses and other | 220.2 | 171.7 |
Current liabilities held-for sale | 101.7 | 0 |
Total current liabilities | 1,237.1 | 1,356.8 |
Long-term debt, net | 3,673.3 | 3,686.8 |
Deferred revenue | 83.1 | 77.6 |
Deferred income taxes | 21.6 | 92.6 |
Postretirement benefits and other long-term liabilities | 891.6 | 810.6 |
Total liabilities | 5,906.7 | 6,024.4 |
Stockholders' equity | ||
Common stock, par value $0.01 per share; 150.0 million shares authorized; 120.1 million shares issued as of September 30, 2019 and 118.9 million shares issued as of December 31, 2018 | 1.2 | 1.2 |
Paid-in capital | 1,310.1 | 1,292.6 |
Retained earnings | 703 | 703.5 |
Treasury stock at cost, 7.6 million shares as of September 30, 2019 and 7.2 million shares as of December 31, 2018 | (209.3) | (201.8) |
Accumulated other comprehensive loss | ||
Defined benefit plans, net of tax | (241.1) | (213.9) |
Foreign currency translation adjustments | (131.3) | (96.6) |
Unrecognized loss on cash flow hedges, net of tax | (25.8) | (1.1) |
Total AAM stockholders' equity | 1,406.8 | 1,483.9 |
Noncontrolling interests in subsidiaries | 2.8 | 2.4 |
Total stockholders' equity | 1,409.6 | 1,486.3 |
Total liabilities and stockholders' equity | $ 7,316.3 | $ 7,510.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150 | 150 |
Common stock, shares, issued | 120.1 | 118.9 |
Treasury stock, shares | 7.6 | 7.2 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net income (loss) | $ (29.7) | $ 304.8 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation and amortization | 411.5 | 390.9 |
Impairment charges | 225 | 26.6 |
Deferred income taxes | (87.6) | 51.7 |
Stock-based compensation | 17.5 | 20.7 |
Pensions and other postretirement benefits, net of contributions | (10.4) | (3.1) |
Gain on sale of business | 0 | (15.5) |
Loss (gain) on disposal of property, plant and equipment, net | 1.3 | (3.3) |
Debt refinancing and redemption costs and (gain) on settlement of capital lease | 7.5 | (0.8) |
Changes in operating assets and liabilities | ||
Accounts receivable | (108.4) | (248) |
Inventories | 18.8 | (67.2) |
Accounts payable and accrued expenses | 8.6 | 188.7 |
Deferred revenue | (12.9) | 13.3 |
Other assets and liabilities | (62.6) | (145.6) |
Net cash provided by operating activities | 378.6 | 513.2 |
Investing activities | ||
Purchases of property, plant and equipment | (335.3) | (391.8) |
Proceeds from sale of property, plant and equipment | 2 | 3.2 |
Investment in joint venture | (2.2) | 0 |
Purchase buyouts of leased equipment | 0 | (0.5) |
Proceeds from sale of business, net | 0 | 47.1 |
Acquisition of business | 0 | (1.3) |
Net cash used in investing activities | (335.5) | (343.3) |
Financing activities | ||
Payments of long-term debt and finance lease obligations | (477.7) | (568) |
Proceeds from issuance of long-term debt | 348.4 | 481.3 |
Debt issuance costs | (3.3) | (6.9) |
Purchase of noncontrolling interest | 0 | (2.2) |
Purchase of treasury stock | (7.5) | (3.7) |
Net cash used in financing activities | (140.1) | (99.5) |
Effect of exchange rate changes on cash | (4.3) | (5.3) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (101.3) | 65.1 |
Cash, cash equivalents and restricted cash at beginning of period | 478.9 | 376.8 |
Cash, cash equivalents and restricted cash at end of period | 377.6 | 441.9 |
Supplemental cash flow information | ||
Interest paid | 136.3 | 127.8 |
Income taxes paid, net of refunds | $ 45.7 | $ 33.6 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | AOCI Attributable to Parent | Noncontrolling Interest |
Common stock, shares, outstanding at Dec. 31, 2017 | 111.3 | ||||||
Total AAM stockholders' equity at Dec. 31, 2017 | $ 1.2 | $ 1,264.6 | $ 761 | $ (198.1) | $ (292.7) | $ 4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to AAM | 89.4 | ||||||
Net income (loss) attributable to noncontrolling interest | 0.1 | ||||||
Stock issued during period, shares, share-based compensation, net of forfeitures | 0.6 | ||||||
Stock-based compensation | 6.6 | ||||||
Treasury stock, shares, acquired | (0.2) | ||||||
Purchase of treasury stock | (3.5) | ||||||
Changes in cash flow hedges | 15.1 | ||||||
Foreign currency translation adjustments | 37.9 | ||||||
Defined benefit plans, net | 1.3 | ||||||
Purchase of noncontrolling interest | (0.9) | ||||||
Common stock, shares, outstanding at Mar. 31, 2018 | 111.7 | ||||||
Total AAM stockholders' equity at Mar. 31, 2018 | 1.2 | 1,271.2 | 850.4 | (201.6) | (238.4) | 3.2 | |
Common stock, shares, outstanding at Dec. 31, 2017 | 111.3 | ||||||
Total AAM stockholders' equity at Dec. 31, 2017 | 1.2 | 1,264.6 | 761 | (198.1) | (292.7) | 4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to AAM | $ 304.3 | ||||||
Net income (loss) attributable to noncontrolling interest | 0.5 | ||||||
Purchase of treasury stock | $ 3.7 | ||||||
Common stock, shares, outstanding at Sep. 30, 2018 | 111.6 | ||||||
Total AAM stockholders' equity at Sep. 30, 2018 | 1.2 | 1,285.5 | 1,065.3 | (201.8) | (313.6) | 2.1 | |
Common stock, shares, outstanding at Mar. 31, 2018 | 111.7 | ||||||
Total AAM stockholders' equity at Mar. 31, 2018 | 1.2 | 1,271.2 | 850.4 | (201.6) | (238.4) | 3.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to AAM | 151.1 | ||||||
Net income (loss) attributable to noncontrolling interest | 0.2 | ||||||
Stock-based compensation | 7.1 | ||||||
Treasury stock, shares, acquired | 0 | ||||||
Purchase of treasury stock | (0.1) | ||||||
Changes in cash flow hedges | (7.9) | ||||||
Foreign currency translation adjustments | (81) | ||||||
Defined benefit plans, net | 12.2 | ||||||
Purchase of noncontrolling interest | (1.4) | ||||||
Common stock, shares, outstanding at Jun. 30, 2018 | 111.7 | ||||||
Total AAM stockholders' equity at Jun. 30, 2018 | 1.2 | 1,278.3 | 1,001.5 | (201.7) | (315.1) | 2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to AAM | $ 63.8 | 63.8 | |||||
Net income (loss) attributable to noncontrolling interest | $ 0.2 | 0.2 | |||||
Exercise of stock options | 0.1 | ||||||
Stock-based compensation | 7.1 | ||||||
Treasury stock, shares, acquired | (0.1) | ||||||
Purchase of treasury stock | (0.1) | ||||||
Changes in cash flow hedges | 12.4 | ||||||
Foreign currency translation adjustments | (11.9) | ||||||
Defined benefit plans, net | 1 | ||||||
Purchase of noncontrolling interest | (0.1) | ||||||
Common stock, shares, outstanding at Sep. 30, 2018 | 111.6 | ||||||
Total AAM stockholders' equity at Sep. 30, 2018 | 1.2 | 1,285.5 | 1,065.3 | (201.8) | (313.6) | 2.1 | |
Common stock, shares, outstanding at Dec. 31, 2018 | 111.7 | ||||||
Total AAM stockholders' equity at Dec. 31, 2018 | $ 1,483.9 | 1.2 | 1,292.6 | 703.5 | (201.8) | (311.6) | 2.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to AAM | 41.6 | ||||||
Net income (loss) attributable to noncontrolling interest | 0.1 | ||||||
Stock issued during period, shares, share-based compensation, net of forfeitures | 1.2 | ||||||
Stock-based compensation | 5.5 | ||||||
New accounting pronouncement or change in accounting principle, effect of adoption, quantification | ASU 2016-02 [Member] | 1.9 | ||||||
New accounting pronouncement or change in accounting principle, effect of adoption, quantification | ASU 2018-02 [Member] | 27.7 | (27.7) | |||||
Treasury stock, shares, acquired | (0.4) | ||||||
Purchase of treasury stock | (7.3) | ||||||
Changes in cash flow hedges | (2.5) | ||||||
Foreign currency translation adjustments | (2.5) | ||||||
Defined benefit plans, net | 0.7 | ||||||
Common stock, shares, outstanding at Mar. 31, 2019 | 112.5 | ||||||
Total AAM stockholders' equity at Mar. 31, 2019 | 1.2 | 1,298.1 | 774.7 | (209.1) | (343.6) | 2.5 | |
Common stock, shares, outstanding at Dec. 31, 2018 | 111.7 | ||||||
Total AAM stockholders' equity at Dec. 31, 2018 | $ 1,483.9 | 1.2 | 1,292.6 | 703.5 | (201.8) | (311.6) | 2.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to AAM | (30.1) | ||||||
Net income (loss) attributable to noncontrolling interest | 0.4 | ||||||
Purchase of treasury stock | $ 7.5 | ||||||
Common stock, shares, outstanding at Sep. 30, 2019 | 112.5 | ||||||
Total AAM stockholders' equity at Sep. 30, 2019 | $ 1,406.8 | 1.2 | 1,310.1 | 703 | (209.3) | (398.2) | 2.8 |
Common stock, shares, outstanding at Mar. 31, 2019 | 112.5 | ||||||
Total AAM stockholders' equity at Mar. 31, 2019 | 1.2 | 1,298.1 | 774.7 | (209.1) | (343.6) | 2.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to AAM | 52.5 | ||||||
Net income (loss) attributable to noncontrolling interest | 0.2 | ||||||
Stock-based compensation | 5.7 | ||||||
Treasury stock, shares, acquired | 0 | ||||||
Purchase of treasury stock | (0.2) | ||||||
Changes in cash flow hedges | (15.8) | ||||||
Foreign currency translation adjustments | 4.9 | ||||||
Defined benefit plans, net | 1.1 | ||||||
Common stock, shares, outstanding at Jun. 30, 2019 | 112.5 | ||||||
Total AAM stockholders' equity at Jun. 30, 2019 | 1.2 | 1,303.8 | 827.2 | (209.3) | (353.4) | 2.7 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to AAM | $ (124.2) | (124.2) | |||||
Net income (loss) attributable to noncontrolling interest | $ 0.1 | 0.1 | |||||
Stock-based compensation | 6.3 | ||||||
Changes in cash flow hedges | (6.4) | ||||||
Foreign currency translation adjustments | (37.1) | ||||||
Defined benefit plans, net | (1.3) | ||||||
Common stock, shares, outstanding at Sep. 30, 2019 | 112.5 | ||||||
Total AAM stockholders' equity at Sep. 30, 2019 | $ 1,406.8 | $ 1.2 | $ 1,310.1 | $ 703 | $ (209.3) | $ (398.2) | $ 2.8 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. ORGANIZATION AND BASIS OF PRESENTATION Organization We are a global Tier 1 supplier to the automotive industry. We design, engineer and manufacture driveline, metal forming and casting products that are making the next generation of vehicles smarter, lighter, safer and more efficient. We employ over 25,000 associates, operating at nearly 90 facilities in 17 countries, to support our customers on global and regional platforms with a focus on quality, operational excellence and technology leadership. In the third quarter of 2019, we entered into a definitive agreement to sell the U.S. operations of our Casting segment to entities affiliated with Gamut Capital Management, L.P. As a result, the assets and liabilities associated with this business have met the criteria to be classified as held-for-sale in our Condensed Consolidated Balance Sheet as of September 30, 2019. See Note 2 - Assets Held-for-Sale for further detail. In the first quarter of 2019, we initiated a new global restructuring program (the 2019 Program) to further streamline our business by consolidating our four existing segments into three segments. This activity occurred through the disaggregation of our Powertrain segment, with a portion moving into our Driveline segment and a portion moving into our Metal Forming segment. See Note 4 - Restructuring and Acquisition-Related Costs for more detail on this reorganization. Basis of Presentation We have prepared the accompanying interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934. These condensed consolidated financial statements are unaudited but include all normal recurring adjustments, which we consider necessary for a fair presentation of the information set forth herein. Results of operations for the periods presented are not necessarily indicative of the results for the full fiscal year. The balance sheet at December 31, 2018 presented herein has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete consolidated financial statements. In order to prepare the accompanying interim condensed consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts and disclosures in our interim condensed consolidated financial statements. Actual results could differ from those estimates. For further information, refer to the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Effect of New Accounting Standards Accounting Standard Update 2018-15 On August 15, 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15 - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (Topic 350-40). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing or hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance becomes effective at the beginning of our 2020 fiscal year and may be applied either retrospectively or prospectively. We expect to adopt this guidance prospectively on January 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements. Accounting Standards Update 2018-02 On February 14, 2018, the FASB issued ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220). ASU 2018-02 allows companies the option to reclassify disproportionate tax effects in accumulated other comprehensive income (AOCI) caused by the 2017 Tax Cuts and Jobs Act, also known as stranded tax effects, to retained earnings. ASU 2018-02 also requires expanded disclosures related to disproportionate income tax effects from AOCI, some of which are applicable to all companies regardless of whether the option to reclassify the stranded tax effects is exercised. This guidance became effective on January 1, 2019, and we elected to reclassify the stranded tax effects caused by the 2017 Tax Cuts and Jobs Act, resulting in a decrease in Accumulated other comprehensive income (loss) and an increase in Retained earnings of $27.7 million at January 1, 2019. Accounting Standards Update 2016-02 On February 25, 2016, the FASB issued ASU 2016-02 - Leases (Topic 842) , and has subsequently issued ASU 2017-13 - Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840) and Leases (Topic 842) |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. ASSETS HELD-FOR-SALE In the third quarter of 2019, we entered into a definitive agreement to sell the U.S. operations of our Casting segment to entities affiliated with Gamut Capital Management, L.P. for a sales price of $245.0 million , subject to certain customary adjustments. The sales price consists of $185.0 million in cash and a $60.0 million deferred payment obligation, which will accrue interest at an annual rate of 6% beginning on January 1, 2020 for a period of twelve years. The sale is expected to close in the fourth quarter of 2019. As a result, the assets and liabilities associated with this business have met the criteria to be classified as held-for-sale in our Condensed Consolidated Balance Sheet as of September 30, 2019 . Upon reclassification to held-for-sale in the third quarter of 2019, we recorded a pre-tax impairment charge of $225.0 million to reduce the carrying value of this business to fair value less cost to sell. The sale of the U.S. operations of our Casting segment did not qualify for classification as discontinued operations as the sale does not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results. The assets and liabilities classified as held-for-sale are as follows (in millions): September 30, 2019 Accounts receivable, net $ 89.1 Inventories 32.8 Prepaid expenses and other 1.5 Property, plant and equipment, net 184.6 Intangible assets, net 158.2 Other assets and deferred charges 71.0 Impairment of carrying value (225.0 ) Total assets held-for-sale* $ 312.2 Accounts payable $ 71.3 Accrued compensation and benefits 6.8 Accrued expenses and other 3.4 Postretirement benefits and other long-term liabilities 20.2 Total liabilities held-for-sale* $ 101.7 * The assets and liabilities classified as held-for-sale are classified entirely as current in the September 30, 2019 Condensed Consolidated Balance Sheet as we expect to complete the sale in the fourth quarter of 2019. As this transaction does not qualify for classification as discontinued operations, no reclassification of the assets and liabilities in the December 31, 2018 Condensed Consolidated Balance Sheet was required. |
Leasing
Leasing | 9 Months Ended |
Sep. 30, 2019 | |
Leasing [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 3. LEASING On January 1, 2019, we adopted new accounting guidance under Accounting Standards Codification Topic 842 (ASC 842) Leases. ASC 842 superseded prior lease accounting guidance and established new criteria for recognizing right-of-use assets and lease liabilities for operating lease arrangements on our Condensed Consolidated Balance Sheet. We elected to adopt this guidance utilizing the optional transition method that allowed us to not retrospectively revise prior period balance sheets to include operating leases, and to only include the disclosures required under ASC 842 for the periods subsequent to adoption. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, we have a lease. We lease certain facilities and furniture under finance leases, and we also lease certain commercial office and production facilities, manufacturing machinery and equipment, vehicles and other assets under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised. The lease consideration for some of our facilities and machinery and equipment is variable, as it is based on various indices or usage of the underlying assets, respectively. Variable lease payments based on indices have been included in the related right-of-use assets and lease liabilities on our Condensed Consolidated Balance Sheet, while variable lease payments based on usage of the underlying asset have been excluded as they do not represent present rights or obligations. Lease cost consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2019 2019 (in millions) Finance lease cost Amortization of right-of-use assets $ 0.2 $ 0.6 Interest on lease liabilities 0.1 0.2 Total finance lease cost 0.3 0.8 Operating lease cost 6.5 19.9 Short-term lease cost 1.4 4.8 Variable lease cost 2.5 6.7 Total lease cost $ 10.7 $ 32.2 For the three months ended September 30, 2019 , $8.0 million and $2.4 million were recorded to Cost of goods sold (COGS) and Selling, general and administrative expenses (SG&A), respectively, on our Condensed Consolidated Statement of Operations, as compared to $7.1 million and $2.4 million , respectively, for the three months ended September 30, 2018 . For the nine months ended September 30, 2019 , $24.0 million and $7.4 million were recorded to COGS and SG&A, respectively, on our Condensed Consolidated Statement of Operations, as compared to $21.4 million and $7.4 million , respectively for the nine months ended September 30, 2018 . The following table summarizes additional information related to our lease agreements. Nine Months Ended September 30, 2019 (in millions, except lease term and rate) Cash paid for amounts included in measurement of lease liabilities Operating cash flows from finance leases $ 0.2 Operating cash flows from operating leases 18.2 Financing cash flows from finance leases 0.6 Weighted-average remaining lease term - finance leases 3.1 years Weighted-average remaining lease term - operating leases 7.5 years Weighted-average discount rate - finance leases 8.1 % Weighted-average discount rate - operating leases 5.6 % As the rate implicit in the lease is typically unknown, the discount rate used to determine the lease liability for the majority of our leases is the collateralized incremental borrowing rate in the applicable geographic area for a similar term and amount as the lease agreement. Future undiscounted minimum payments under non-cancelable leases are as follows: Finance Leases Operating Leases (in millions) 2019 (excluding the nine months ended September 30, 2019) $ 0.3 $ 6.9 2020 1.1 25.6 2021 1.0 18.1 2022 0.9 14.5 2023 0.9 9.7 Thereafter — 38.9 Total future undiscounted minimum lease payments 4.2 113.7 Less: Impact of discounting (1.4 ) (20.0 ) Total $ 2.8 $ 93.7 For the full year 2019, we expect payments for short-term leases to be approximately $5.0 million . The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheet as of September 30, 2019 are as follows: Finance Leases Operating Leases (in millions) Property, plant and equipment, net $ 2.8 $ — Other assets and deferred charges — 93.7 Total $ 2.8 $ 93.7 Accrued expenses and other $ 0.9 $ 21.4 Postretirement benefits and other long-term liabilities 1.9 72.3 Total $ 2.8 $ 93.7 ASC 842 Adoption of Practical Expedients We have elected to adopt, for all classes of underlying assets, a package of practical expedients provided under ASC 842 that allow us to 1) not reassess whether existing or expired contracts contain or contained a lease; 2) not reassess the lease classification (operating or financing) of our existing leases at adoption; and 3) not reassess initial direct costs for existing leases. ASC 842 also provides a practical expedient that allows companies to exclude balance sheet recognition of right-of-use assets and associated liabilities for lease terms of 12 months or less, which we have elected as part of our adoption of ASC 842 for all classes of underlying assets. We do not include right-of-use assets and operating lease liabilities on our Condensed Consolidated Balance Sheet for leases with a term of 12 months or less. We have also elected to adopt the practical expedient under ASC 842 to not separate lease and non-lease components in contracts that contain both. These lease agreements are accounted for as a single lease component for all classes of underlying assets. Leases Not Yet Commenced As of September 30, 2019 , we have entered into additional operating leases that have not yet commenced of approximately $1.4 million |
Restructuring and Acquisition-R
Restructuring and Acquisition-Related Costs | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | 4. RESTRUCTURING AND ACQUISITION-RELATED COSTS In 2016, AAM initiated actions under a global restructuring program (the 2016 Program) focused on creating a more streamlined organization in addition to reducing our cost structure and preparing for acquisition and integration activities. We incurred severance charges totaling $2.8 million and implementation costs totaling $29.6 million under the 2016 Program. There were no charges incurred under the 2016 Program during the first nine months of 2019 and we do not expect to incur any additional restructuring charges under the 2016 Program in future periods. In the first quarter of 2019, we initiated a new global restructuring program (the 2019 Program) to further streamline our business by consolidating our four existing segments into three segments. This activity occurred through the disaggregation of our Powertrain segment, with a portion moving into our Driveline segment and a portion moving into our Metal Forming segment. The primary objectives of this consolidation are to further the integration of Metaldyne Performance Group, Inc. (MPG), align AAM's product and process technologies, and to achieve efficiencies within our corporate and business unit support teams to reduce cost in our business. A summary of our restructuring activity for the first nine months of 2019 and 2018 is shown below: Severance Charges Implementation Costs Asset Impairment Charges Total (in millions) Accrual at December 31, 2017 $ 0.3 $ — $ — $ 0.3 Charges 2.3 8.8 26.6 37.7 Cash utilization (0.4 ) (6.6 ) — (7.0 ) Non-cash utilization — — (26.6 ) (26.6 ) Accrual at September 30, 2018 $ 2.2 $ 2.2 $ — $ 4.4 Accrual at December 31, 2018 $ 2.4 $ 1.6 $ — $ 4.0 Charges 10.4 13.1 — 23.5 Cash utilization (11.7 ) (9.9 ) — (21.6 ) Accrual at September 30, 2019 $ 1.1 $ 4.8 $ — $ 5.9 As part of our restructuring actions, we incurred total severance charges of approximately $10.4 million and $2.3 million , as well as total implementation costs of approximately $13.1 million and $8.8 million , during the nine months ended September 30, 2019 and 2018 , respectively. We expect to incur approximately $30 million to $35 million of total restructuring charges in 2019, including costs incurred under the ongoing 2019 Program. In the first nine months of 2018, we initiated actions to exit operations at manufacturing facilities in our Driveline, Metal Forming and former Powertrain segment. As a result of these actions, we were required to assess the associated long-lived assets for impairment. Based on our analysis, assets that were not to be redeployed to other AAM facilities were determined to be fully impaired resulting in a charge of $26.6 million for the nine months ended September 30, 2018. See Note 8 - Fair Value for further detail. In 2017, we completed the acquisitions of MPG and USM Mexico Manufacturing LLC (USM Mexico). During the nine months ended September 30, 2019 , we incurred the following integration charges related to these acquisitions: Integration Expenses (in millions) Charges for the nine months ended September 30, 2019 $ 12.5 These integration expenses primarily reflect costs incurred for information technology systems and ongoing operational activities incurred in conjunction with the acquisition of MPG. Total restructuring charges and acquisition-related charges are presented on a separate line item titled Restructuring and acquisition-related costs in our Condensed Consolidated Statements of Operations. Restructuring and acquisition-related costs totaled $36.0 million for the nine months ended September 30, 2019 , of which $23.5 million were restructuring charges and $12.5 million were acquisition-related charges, and $66.8 million for the nine months ended September 30, 2018 , of which $37.7 million were restructuring charges and $29.1 million |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table provides a reconciliation of changes in goodwill for the nine months ended September 30, 2019 : Driveline Metal Forming Powertrain Casting Consolidated (in millions) Balance at December 31, 2018 $ 212.1 $ 552.4 $ 377.3 $ — $ 1,141.8 Reorganization 187.2 190.1 (377.3 ) — — Foreign currency translation (5.4 ) (8.9 ) — — (14.3 ) Balance at September 30, 2019 $ 393.9 $ 733.6 $ — $ — $ 1,127.5 In the first quarter of 2019, we initiated a global restructuring program (the 2019 Program) to further streamline our business by consolidating our four existing segments into three segments. See Note 4 - Restructuring and Acquisition-Related Costs for further detail on this reorganization of our segments. Prior to this reorganization, our Powertrain segment was also a reporting unit for purposes of measuring and reporting goodwill. The goodwill that was previously attributable to the Powertrain reporting unit was reallocated to the Driveline and Metal Forming reporting units based on the relative fair value of the respective portions that became attributable to those reporting units. The initiation of the 2019 Program and the reorganization of our business represented a triggering event in the first quarter of 2019 to test goodwill for impairment prior to reallocating the Powertrain goodwill to Driveline and Metal Forming. No impairment was identified as a result of completing this goodwill impairment test. Other Intangible Assets The following table provides a reconciliation of the gross carrying amount and associated accumulated amortization for AAM's other intangible assets, which are all subject to amortization: September 30, December 31, 2019 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Capitalized computer software $ 41.4 $ (26.0 ) $ 15.4 $ 38.0 $ (20.1 ) $ 17.9 Customer platforms 856.2 (158.6 ) 697.6 952.2 (123.5 ) 828.7 Customer relationships 53.0 (8.5 ) 44.5 147.0 (16.5 ) 130.5 Technology and other 155.7 (31.7 ) 124.0 156.2 (22.2 ) 134.0 Total $ 1,106.3 $ (224.8 ) $ 881.5 $ 1,293.4 $ (182.3 ) $ 1,111.1 Amortization expense for our intangible assets was $23.7 million and $73.6 million for the three and nine months ended September 30, 2019 , respectively, and $24.8 million and $74.5 million for the three and nine months ended September 30, 2018 , respectively. Estimated amortization expense for the full year 2019 is approximately $95 million and estimated amortization expense for each of the full years 2020 through 2023 is approximately $87 million |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 6. INVENTORIES We state our inventories at the lower of cost or net realizable value. The cost of our inventories is determined using the first-in first-out method. When we determine that our gross inventories exceed usage requirements, or if inventories become obsolete or otherwise not saleable, we record a provision for such loss as a component of our inventory accounts. Inventories consist of the following: September 30, 2019 December 31, 2018 (in millions) Raw materials and work-in-progress $ 337.3 $ 375.1 Finished goods 88.0 99.0 Gross inventories 425.3 474.1 Inventory valuation reserves (22.2 ) (14.4 ) Inventories, net $ 403.1 $ 459.7 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | 7. LONG-TERM DEBT Long-term debt consists of the following: September 30, 2019 December 31, 2018 (in millions) Revolving Credit Facility $ — $ — Term Loan A Facility 340.0 83.8 Term Loan B Facility 1,248.6 1,511.2 7.75% Notes due 2019 — 100.0 6.625% Notes due 2022 450.0 450.0 6.50% Notes due 2027 500.0 500.0 6.25% Notes due 2026 400.0 400.0 6.25% Notes due 2025 700.0 700.0 Foreign credit facilities and other 113.2 127.1 Capital lease obligations — 3.4 Total debt 3,751.8 3,875.5 Less: Current portion of long-term debt 23.8 121.6 Long-term debt 3,728.0 3,753.9 Less: Debt issuance costs 54.7 67.1 Long-term debt, net $ 3,673.3 $ 3,686.8 Senior Secured Credit Facilities In 2017, American Axle & Manufacturing Holdings, Inc. (Holdings) and American Axle & Manufacturing, Inc. (AAM, Inc.) entered into a credit agreement (the Credit Agreement). In connection with the Credit Agreement, Holdings, AAM, Inc. and certain of their restricted subsidiaries entered into a Collateral Agreement and Guarantee Agreement with the financial institutions party thereto. The Credit Agreement included a $100.0 million term loan A facility (the Term Loan A Facility), a $1.55 billion term loan B facility (the Term Loan B Facility) and a $932 million multi-currency revolving credit facility (the Revolving Credit Facility, and together with the Term Loan A Facility and the Term Loan B Facility, the Senior Secured Credit Facilities). In July 2019, Holdings, AAM, Inc., and certain subsidiaries of Holdings entered into the First Amendment (First Amendment) to the Credit Agreement (as amended by the First Amendment, the Amended Credit Agreement). The First Amendment, among other things, established $340 million in incremental term loan A commitments under the Amended Credit Agreement with a maturity date of July 29, 2024 (Term Loan A Facility due 2024), extended the maturity date of the Revolving Credit Facility from April 6, 2022 to July 29, 2024 and modified the applicable margin with respect to interest rates under the Term Loan A Facility due 2024 and interest rates and commitment fees under the Revolving Credit Facility. The applicable margin and the maturity date for the Term Loan B Facility remain unchanged. The proceeds of $340 million were used to repay all of the outstanding loans under the existing Term Loan A Facility and a portion of the outstanding Term Loan B Facility, resulting in no additional indebtedness. In the third quarter of 2019, we expensed $5.1 million for the write-off of the unamortized debt issuance costs related to the existing Term Loan A Facility and a portion of the unamortized debt issuance costs related to our Term Loan B Facility that we had been amortizing over the expected life of the borrowings. At September 30, 2019 , we had $890.8 million available under the Revolving Credit Facility. This availability reflects a reduction of $34.2 million for standby letters of credit issued against the facility. The proceeds of the Revolving Credit Facility are used for general corporate purposes. The Senior Secured Credit Facilities provide back-up liquidity for our foreign credit facilities. We intend to use the availability of long-term financing under the Senior Secured Credit Facilities to refinance any current maturities related to such debt agreements that are not otherwise refinanced on a long-term basis in their local markets, except where otherwise reclassified to Current portion of long-term debt on our Condensed Consolidated Balance Sheet. Foreign credit facilities We utilize local currency credit facilities to finance the operations of certain foreign subsidiaries. At September 30, 2019 , $107.8 million was outstanding under our foreign credit facilities, as compared to $127.1 million at December 31, 2018 . At September 30, 2019 , an additional $93.7 million was available under our foreign credit facilities. Weighted-Average Interest Rate The weighted-average interest rate of our long-term debt outstanding was 5.8% at September 30, 2019 and 5.9% at December 31, 2018 . Capital lease obligations Upon our adoption of ASC 842 Leases , our capital (finance) lease obligations are now presented in Accrued expenses and other, and Postretirement benefits and other long-term liabilities on our Condensed Consolidated Balance Sheet. See Note 3 - Leasing for additional detail regarding our adoption of ASC 842. Redemption of 7.75% Notes due 2019 In the second quarter of 2019, we voluntarily redeemed the remaining balance outstanding under our 7.75% Notes due 2019. This resulted in a principal payment of $100 million and $0.3 million in accrued interest. We also expensed approximately $0.1 million for the write-off of the unamortized debt issuance costs that we had been amortizing over the expected life of the borrowing, and approximately $2.2 million |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 8. FAIR VALUE Accounting Standards Codification 820 - Fair Value Measurement defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The definition is based on an exit price rather than an entry price, regardless of whether the entity plans to hold or sell the asset. This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows: • Level 1: Observable inputs such as quoted prices in active markets; • Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Financial instruments The estimated fair value of our financial assets and liabilities that are recognized at fair value on a recurring basis, using available market information and other observable data, are as follows: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Balance Sheet Classification Cash equivalents $ 160.7 $ 160.7 $ 44.0 $ 44.0 Level 1 Prepaid expenses and other Cash flow hedges - currency forward contracts 2.3 2.3 1.3 1.3 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 1.6 1.6 0.9 0.9 Level 2 Nondesignated - currency forward contracts 0.2 0.2 0.6 0.6 Level 2 Other assets and deferred charges Cash flow hedges - currency forward contracts 0.9 0.9 0.4 0.4 Level 2 Cash flow hedges - fixed-to-fixed cross-currency swap 7.0 7.0 — — Level 2 Cash flow hedges - variable-to-fixed interest rate swap 4.0 4.0 1.6 1.6 Level 2 Accrued expenses and other Cash flow hedges - currency forward contracts 0.3 0.3 0.8 0.8 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 10.0 10.0 0.7 0.7 Level 2 Nondesignated - currency forward contracts 0.4 0.4 0.4 0.4 Level 2 Postretirement benefits and other long-term liabilities Cash flow hedges - currency forward contracts 0.1 0.1 0.9 0.9 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 24.2 24.2 6.9 6.9 Level 2 The carrying values of our cash, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short-term maturities of these instruments. The carrying values of our borrowings under the foreign credit facilities approximate their fair value due to the frequent resetting of the interest rates. We estimated the fair value of the amounts outstanding on our debt using available market information and other observable data, to be as follows: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Revolving Credit Facility $ — $ — $ — $ — Level 2 Term Loan A Facility 340.0 334.9 83.8 79.5 Level 2 Term Loan B Facility 1,248.6 1,217.4 1,511.2 1,420.6 Level 2 7.75% Notes due 2019 — — 100.0 102.1 Level 2 6.625% Notes due 2022 450.0 454.5 450.0 444.4 Level 2 6.50% Notes due 2027 500.0 474.4 500.0 446.3 Level 2 6.25% Notes due 2026 400.0 380.0 400.0 358.0 Level 2 6.25% Notes due 2025 700.0 665.0 700.0 636.7 Level 2 Long-Lived Assets During the second quarter of 2018, we recorded asset impairment charges as a result of restructuring actions initiated during the quarter. See Note 4 - Restructuring and Acquisition-Related Costs for further detail. There were no such impairment charges incurred during the nine months ended September 30, 2019 . The following table summarizes the impairments of long-lived assets measured at fair value on a nonrecurring basis subsequent to initial recognition: Balance Sheet Classification Fair Value at September 30, 2018 Asset Impairment for the Nine Months Ended September 30, 2018 Property, plant and equipment, net $ — $ 25.7 Other assets and deferred charges — 0.9 |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Disclosure [Text Block] | 11. PRODUCT WARRANTIES We record a liability for estimated warranty obligations at the dates our products are sold. These estimates are established using sales volumes and internal and external warranty data where there is no payment history and historical information about the average cost of warranty claims for customers with prior claims. We estimate our costs based on the contractual arrangements with our customers, existing customer warranty terms and internal and external warranty data, which includes a determination of our warranty claims and actions taken to improve product quality and minimize warranty claims. We continuously evaluate these estimates and our customers' administration of their warranty programs. We closely monitor actual warranty claim data and adjust the liability, as necessary, on a quarterly basis. The following table provides a reconciliation of changes in the product warranty liability: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Beginning balance $ 55.7 $ 58.4 $ 57.7 $ 49.5 Accruals 5.3 4.4 14.7 14.9 Payments (0.9 ) (2.2 ) (8.2 ) (3.3 ) Adjustment to prior period accruals 0.7 5.1 (3.6 ) 4.9 Foreign currency translation (0.5 ) (0.2 ) (0.3 ) (0.5 ) Ending balance $ 60.3 $ 65.5 $ 60.3 $ 65.5 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 9. DERIVATIVES Our business and financial results are affected by fluctuations in global financial markets, including interest rates and currency exchange rates. Our hedging policy has been developed to manage these risks to an acceptable level based on management’s judgment of the appropriate trade-off between risk, opportunity and cost. We do not hold financial instruments for trading or speculative purposes. Currency derivative contracts From time to time, we use foreign currency forward contracts to reduce the effects of fluctuations in exchange rates relating to certain foreign currencies. As of September 30, 2019 , we have currency forward contracts outstanding with a total notional amount of $191.5 million that hedge our exposure to changes in foreign currency exchange rates for certain payroll expenses into the third quarter of 2022 and other items into the second quarter of 2020. Fixed-to-fixed cross-currency swap In the third quarter of 2019, we entered into a fixed-to-fixed cross-currency swap to reduce the variability of functional currency equivalent cash flows associated with changes in exchange rates on certain Euro-based intercompany loans. As of September 30, 2019 , the notional amount of the fixed-to-fixed cross-currency swap was $217.9 million , and hedges our exposure to changes in exchange rates on the intercompany loans into the second quarter of 2024. Variable-to-fixed interest rate swap In 2018, we entered into a variable-to-fixed interest rate swap to reduce the variability of cash flows associated with interest payments on our variable rate debt. In the second quarter of 2019, we discontinued this variable-to-fixed interest rate swap, which was a liability of $9.7 million on the date that it was discontinued. Also in the second quarter of 2019, we entered into a new variable-to-fixed interest rate swap to reduce the variability of cash flows associated with interest payments on our variable rate debt. We have the following notional amounts hedged in relation to our variable-to-fixed interest rate swap: $1.0 billion through May 2020, $900.0 million through May 2021, $750.0 million through May 2022, $600.0 million through May 2023 and $500.0 million through May 2024. The following table summarizes the reclassification of derivative gains and losses into net income from accumulated other comprehensive income (loss) for those derivative instruments designated as cash flow hedges under ASC 815 - Derivatives and Hedging : Location Gain (Loss) Reclassified During Total of Financial Gain (Loss) Expected of Gain (Loss) Three Months Ended Nine Months Ended Statement to be Reclassified Reclassified into September 30, September 30, Line Item During the Net Income 2019 2018 2019 2018 2019 Next 12 Months (in millions) Currency forward contracts Cost of Goods Sold $ 0.9 $ (0.9 ) $ 1.8 $ (3.7 ) $ 4,381.7 $ 2.0 Fixed-to-fixed cross-currency swap Other Income (Expense), net 7.6 — 7.6 — (9.0 ) — Variable-to-fixed interest rate swap Interest Expense (1.7 ) 0.8 0.2 2.1 (163.9 ) (9.1 ) See Note 14 - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (AOCI) for amounts recognized in other comprehensive income (loss) during the three and nine months ended September 30, 2019 and 2018 . The following table summarizes the amount and location of gains and losses recognized in the Condensed Consolidated Statements of Operations for those derivative instruments not designated as hedging instruments under ASC 815: Gain (Loss) Recognized During Total of Financial Location of Gain (Loss) Three Months Ended Nine Months Ended Statement Line Recognized in September 30, September 30, Item Net Income 2019 2018 2019 2018 2019 (in millions) Currency forward contracts Cost of Goods Sold $ (0.5 ) $ 2.3 $ 1.3 $ 2.8 $ 4,381.7 Currency forward contracts Other Income (Expense), net 0.1 (0.5 ) (0.5 ) 1.3 (9.0 ) |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 10. EMPLOYEE BENEFIT PLANS The components of net periodic benefit cost (credit) are as follows: Pension Benefits Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Service cost $ 0.4 $ 1.1 $ 1.1 $ 3.2 Interest cost 7.1 6.9 21.3 20.6 Expected asset return (10.3 ) (11.4 ) (30.9 ) (34.4 ) Amortized loss 1.5 2.2 4.7 6.6 Amortized prior service cost — — — 0.1 Curtailment — — — 3.2 Settlement 0.4 — 0.4 — Net periodic benefit credit $ (0.9 ) $ (1.2 ) $ (3.4 ) $ (0.7 ) Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Service cost $ — $ 0.1 $ 0.2 $ 0.3 Interest cost 3.3 3.1 9.7 9.3 Amortized loss — 0.2 0.1 0.6 Amortized prior service credit (0.4 ) (0.7 ) (1.2 ) (2.0 ) Net periodic benefit cost $ 2.9 $ 2.7 $ 8.8 $ 8.2 The noncurrent liabilities associated with our pension and other postretirement benefit plans are classified as Postretirement benefits and other long-term liabilities on our Condensed Consolidated Balance Sheets. As of September 30, 2019 and December 31, 2018 , we have a noncurrent pension liability of $113.0 million and $128.6 million , respectively. As of September 30, 2019 and December 31, 2018 , we have a noncurrent other postretirement benefits liability of $506.4 million and $506.5 million , respectively. Due to the availability of our pre-funded pension balances (previous contributions in excess of prior required pension contributions) related to certain of our U.S. pension plans, we expect our regulatory pension funding requirements in 2019 to be approximately $2.2 million . We expect our cash payments for other postretirement benefit obligations in 2019 , net of GM cost sharing, to be approximately $17.7 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 12. INCOME TAXES We adjust our effective tax rate each quarter based on our estimated annual effective tax rate. We also record the tax impact of certain discrete, unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year or a year-to-date loss where no tax benefit can be recognized are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections. Income tax was a benefit of $40.4 million for the three months ended September 30, 2019 , an effective income tax rate of 24.6% , as compared to expense of $11.5 million for the three months ended September 30, 2018 , an effective income tax rate of 15.2% . Income tax was a benefit of $37.4 million for the nine months ended September 30, 2019 , an effective income tax rate of 55.7% , as compared to expense of $31.4 million for the nine months ended September 30, 2018 , an effective income tax rate of 9.3% . Our effective income tax rate for the three months ended September 30, 2019 varies from our effective income tax rate for the three months ended September 30, 2018 primarily due to an income tax benefit of $47.2 million recognized during the third quarter of 2019 as a result of the impairment charge recorded upon reclassifying the assets and liabilities of the U.S. Casting business to held-for-sale. Our effective income tax rate for the nine months ended September 30, 2019 varies from our effective income tax rate for the nine months ended September 30, 2018, primarily as a result of the tax benefit associated with the impairment charge as discussed above. In addition, as part of the Tax Cuts and Jobs Act in 2017, a one-time transition tax (Transition Tax) was imposed on certain foreign earnings for which U.S. income tax was previously deferred. The Department of Treasury and Internal Revenue Service issued final regulations on February 5, 2019 regarding the Transition Tax, which changed the manner in which we are required to compute the Transition Tax when it is recognized over a two-year period. The application of the final regulations resulted in a $9.3 million income tax benefit, which has been recorded in the nine months ended September 30, 2019 , the period in which the final regulations were issued. Our effective income tax rate for the nine months ended September 30, 2018 was impacted by certain discrete income tax items recognized during this period. During the first nine months of 2018, we recognized a discrete tax benefit as a result of finalizing an advance pricing agreement in a foreign jurisdiction, which resulted in a reduction of our liability for unrecognized income tax benefits and related interest and penalties of $20.0 million . Also in the first nine months of 2018, we recognized a discrete tax expense related to the sale of the aftermarket business associated with our former Powertrain segment. For the three and nine months ended September 30, 2019 and 2018 , our effective income tax rates vary from the U.S. federal statutory rate of 21% primarily due to favorable foreign tax rates, as well as the impact of tax credits and the effect of the discrete items described above. We operate in multiple jurisdictions throughout the world and the income tax returns of several subsidiaries in various tax jurisdictions are currently under examination. We are currently under a U.S. federal income tax examination for the years 2015 through 2017. We continue to have years subject to income tax examination in certain significant tax jurisdictions from 2013 to present. Based on the status of ongoing tax audits, and the protocol of finalizing audits by the relevant tax authorities, it is not possible to estimate the impact of changes, if any, to previously recorded uncertain tax positions. As of September 30, 2019 and December 31, 2018 , we have recorded a liability for unrecognized income tax benefits and related interest and penalties of $51.9 million and $45.6 million , respectively. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 13. EARNINGS (LOSS) PER SHARE (EPS) We present EPS using the two-class method. This method allocates undistributed earnings between common shares and non-vested share based payment awards that entitle the holder to non-forfeitable dividend rights. Our participating securities include non-vested restricted stock units. The following table sets forth the computation of our basic and diluted EPS available to shareholders of common stock (excluding participating securities): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions, except per share data) Numerator Net income (loss) attributable to AAM $ (124.2 ) $ 63.8 $ (30.1 ) $ 304.3 Less: Net income attributable to participating securities — (2.0 ) — (8.9 ) Net income (loss) attributable to common shareholders - Basic and Dilutive $ (124.2 ) $ 61.8 $ (30.1 ) $ 295.4 Denominators Basic common shares outstanding - Weighted-average shares outstanding 115.8 115.3 115.6 115.0 Less: Participating securities (3.3 ) (3.6 ) (3.3 ) (3.4 ) Weighted-average common shares outstanding 112.5 111.7 112.3 111.6 Effect of dilutive securities - Dilutive stock-based compensation — 1.0 — 0.7 Diluted shares outstanding - Adjusted weighted-average shares after assumed conversions 112.5 112.7 112.3 112.3 Basic EPS $ (1.10 ) $ 0.55 $ (0.27 ) $ 2.65 Diluted EPS $ (1.10 ) $ 0.55 $ (0.27 ) $ 2.63 Basic and diluted loss per share are the same for the three and nine months ended September 30, 2019 because the effect of dilutive performance shares of 0.3 million and 0.4 million |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Disclosure of Reclassification Amount [Text Block] | 14. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) Reclassification adjustments and other activity impacting accumulated other comprehensive income (loss) during the three months ended September 30, 2019 and September 30, 2018 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at June 30, 2019 $ (239.8 ) $ (94.2 ) $ (19.4 ) $ (353.4 ) Other comprehensive income (loss) before reclassifications (2.9 ) (37.1 ) (0.7 ) (40.7 ) Income tax effect of other comprehensive income (loss) before reclassifications 0.6 — (0.1 ) 0.5 Amounts reclassified from accumulated other comprehensive loss 1.3 (a) — (6.8 ) (b) (5.5 ) Income taxes reclassified into net income (0.3 ) — 1.2 0.9 Net change in accumulated other comprehensive loss (1.3 ) (37.1 ) (6.4 ) (44.8 ) Balance at September 30, 2019 $ (241.1 ) $ (131.3 ) $ (25.8 ) $ (398.2 ) Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at June 30, 2018 $ (238.5 ) $ (77.2 ) $ 0.6 $ (315.1 ) Other comprehensive income (loss) before reclassifications — (11.9 ) 12.8 0.9 Income tax effect of other comprehensive income (loss) before reclassifications — — (0.7 ) (0.7 ) Amounts reclassified from accumulated other comprehensive income (loss) 1.3 (a) — 0.1 (b) 1.4 Income taxes reclassified into net income (0.3 ) — 0.2 (0.1 ) Net change in accumulated other comprehensive income (loss) 1.0 (11.9 ) 12.4 1.5 Balance at September 30, 2018 $ (237.5 ) $ (89.1 ) $ 13.0 $ (313.6 ) (a) The amount reclassified from AOCI included $1.2 million in COGS and $0.1 million in SG&A for the three months ended September 30, 2019 and $1.5 million in COGS and $(0.1) million in SG&A for the three months ended September 30, 2018. (b) The amounts reclassified from AOCI included $(0.9) million in COGS, $1.7 million in interest expense and $(7.6) million in other income for the three months ended September 30, 2019 and $0.9 million in COGS and $(0.8) million in interest expense for the three months ended September 30, 2018. Reclassification adjustments and other activity impacting accumulated other comprehensive income (loss) during the nine months ended September 30, 2019 and September 30, 2018 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2018 $ (213.9 ) $ (96.6 ) $ (1.1 ) $ (311.6 ) Other comprehensive income (loss) before reclassifications (30.8 ) (a) (34.7 ) (22.4 ) (87.9 ) Income tax effect of other comprehensive income (loss) before reclassifications 0.6 — 5.7 6.3 Amounts reclassified from accumulated other comprehensive loss 3.8 (b) — (9.6 ) (c) (5.8 ) Income taxes reclassified into net income (0.8 ) — 1.6 0.8 Net change in accumulated other comprehensive loss (27.2 ) (34.7 ) (24.7 ) (86.6 ) Balance at September 30, 2019 $ (241.1 ) $ (131.3 ) $ (25.8 ) $ (398.2 ) Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2017 $ (252.0 ) $ (34.1 ) $ (6.6 ) $ (292.7 ) Other comprehensive income (loss) before reclassifications 14.7 (55.2 ) 19.7 (20.8 ) Income tax effect of other comprehensive income (loss) before reclassifications (3.6 ) — (2.2 ) (5.8 ) Amounts reclassified from accumulated other comprehensive income (loss) 4.6 (b) 0.2 1.6 (c) 6.4 Income taxes reclassified into net income (1.2 ) — 0.5 (0.7 ) Net change in accumulated other comprehensive income (loss) 14.5 (55.0 ) 19.6 (20.9 ) Balance at September 30, 2018 $ (237.5 ) $ (89.1 ) $ 13.0 $ (313.6 ) (a) ASU 2018-02 became effective on January 1, 2019, and we elected to reclassify the stranded tax effects caused by the 2017 Tax Cuts and Jobs Act, resulting in a decrease in Accumulated other comprehensive income (loss) of $27.7 million at January 1, 2019. See Note 1 - Organization and Basis of Presentation for further detail. (b) The amount reclassified from AOCI included $3.6 million in COGS and $0.2 million in SG&A for the nine months ended September 30, 2019 and $4.5 million in COGS and $0.1 million in SG&A for the nine months ended September 30, 2018. (c) The amounts reclassified from AOCI included $(1.8) million in COGS, $(0.2) million in interest expense and $(7.6) million in other income for the nine months ended September 30, 2019 and $3.7 million in COGS and $(2.1) million in interest expense for the nine months ended September 30, 2018. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 15. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Net Sales Net sales recognized from contracts with customers, disaggregated by segment and geographical location, are presented in the following table for the three and nine months ended September 30, 2019 and 2018 . Net sales are attributed to regions based on the location of production. Intersegment sales have been excluded from the table. In the first quarter of 2019, we reorganized our business to disaggregate our former Powertrain business unit, with a portion moving to our Driveline business unit and a portion moving to our Metal Forming business unit. As a result, the Powertrain amounts previously reported for the three and nine months ended September 30, 2018 have been reclassified to Driveline and Metal Forming. Three Months Ended September 30, 2019 Driveline Metal Forming Casting Total North America $ 902.7 $ 296.9 $ 169.7 $ 1,369.3 Asia 131.0 10.3 — 141.3 Europe 77.9 61.1 — 139.0 South America 26.5 1.3 — 27.8 Total $ 1,138.1 $ 369.6 $ 169.7 $ 1,677.4 Three Months Ended September 30, 2018 Driveline Metal Forming Casting Total North America $ 946.0 $ 316.8 $ 193.8 $ 1,456.6 Asia 160.7 8.9 — 169.6 Europe 85.1 69.8 — 154.9 South America 34.6 1.3 — 35.9 Total $ 1,226.4 $ 396.8 $ 193.8 $ 1,817.0 Nine Months Ended September 30, 2019 Driveline Metal Forming Casting Total North America $ 2,644.1 $ 903.7 $ 553.9 $ 4,101.7 Asia 419.3 25.7 — 445.0 Europe 270.3 201.0 — 471.3 South America 78.2 4.7 — 82.9 Total $ 3,411.9 $ 1,135.1 $ 553.9 $ 5,100.9 Nine Months Ended September 30, 2018 Driveline Metal Forming Casting Total North America $ 2,892.5 $ 983.6 $ 613.2 $ 4,489.3 Asia 481.6 33.7 — 515.3 Europe 240.3 228.8 — 469.1 South America 98.9 3.7 — 102.6 Total $ 3,713.3 $ 1,249.8 $ 613.2 $ 5,576.3 Contract Assets and Liabilities The following table summarizes our beginning and ending balances for accounts receivable and contract liabilities associated with our contracts with customers: Accounts Receivable, Net Contract Liabilities (Current) Contract Liabilities (Long-term) December 31, 2018 $ 966.5 $ 44.3 $ 77.6 September 30, 2019 976.9 22.6 83.1 Increase/(decrease) $ 10.4 $ (21.7 ) $ 5.5 Contract liabilities relate to deferred revenue associated with various settlements and commercial agreements for which we have a future performance obligation to the customer. We recognize this deferred revenue into revenue over the life of the associated program as we satisfy our performance obligations to the customer. We do not have contract assets as defined in ASC 606. During the three and nine months ended September 30, 2019 , we amortized $12.5 million and $40.3 million , respectively, of previously recorded contract liabilities into revenue as we satisfied performance obligations with our customers. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 16. SEGMENT REPORTING Subsequent to the acquisition of MPG in 2017, our business was organized into four segments: Driveline, Metal Forming, Powertrain and Casting. In the first quarter of 2019, we reorganized our business to disaggregate our former Powertrain segment, with a portion moving to our Driveline segment and a portion moving to our Metal Forming segment. As a result, our business is now organized into Driveline, Metal Forming and Casting segments, with each representing a reportable segment under ASC 280 Segment Reporting . The Powertrain Sales and Segment Adjusted EBITDA amounts previously reported for the three and nine months ended September 30, 2018 , as well as the Total Assets previously reported for Powertrain as of December 31, 2018, have been reclassified to Driveline and Metal Forming in the tables below. The results of each segment are regularly reviewed by the chief operating decision maker to assess the performance of the segment and make decisions regarding the allocation of resources to the segments. Our product offerings by segment are as follows: • Driveline products consist primarily of front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles; • Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears and assemblies, connecting rods and variable valve timing products for Original Equipment Manufacturers and Tier 1 automotive suppliers; and • Casting products consist primarily of both thin wall castings and high strength ductile iron castings, as well as transmission pump bodies, steering knuckles, control arms, brake anchors and calipers, and ball joint housings for the global light vehicle, commercial and industrial markets. We use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Segment Adjusted EBITDA is defined as EBITDA for our reportable segments excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gain on the sale of a business, impairment charges and non-recurring items. The following tables represent information by reportable segment for the three months ended September 30, 2019 and 2018 (in millions) : Three Months Ended September 30, 2019 Driveline Metal Forming Casting Total Sales $ 1,146.7 $ 476.6 $ 209.0 $ 1,832.3 Less: intersegment sales 8.6 107.0 39.3 154.9 Net external sales $ 1,138.1 $ 369.6 $ 169.7 $ 1,677.4 Segment Adjusted EBITDA $ 171.6 $ 80.4 $ 13.8 $ 265.8 Three Months Ended September 30, 2018 Driveline Metal Forming Casting Total Sales $ 1,228.2 $ 509.0 $ 219.1 $ 1,956.3 Less: intersegment sales 1.8 112.2 25.3 139.3 Net external sales $ 1,226.4 $ 396.8 $ 193.8 $ 1,817.0 Segment Adjusted EBITDA $ 176.9 $ 83.6 $ 14.5 $ 275.0 The following tables represent information by reportable segment for the nine months ended September 30, 2019 and 2018 (in millions) : Nine Months Ended September 30, 2019 Driveline Metal Forming Casting Total Sales $ 3,422.5 $ 1,444.1 $ 655.0 $ 5,521.6 Less: intersegment sales 10.6 309.0 101.1 420.7 Net external sales $ 3,411.9 $ 1,135.1 $ 553.9 $ 5,100.9 Segment Adjusted EBITDA $ 461.7 $ 253.7 $ 61.4 $ 776.8 Nine Months Ended September 30, 2018 Driveline Metal Forming Casting Total Sales $ 3,718.6 $ 1,581.7 $ 701.3 $ 6,001.6 Less: intersegment sales 5.3 331.9 88.1 425.3 Net external sales $ 3,713.3 $ 1,249.8 $ 613.2 $ 5,576.3 Segment Adjusted EBITDA $ 570.9 $ 306.0 $ 63.0 $ 939.9 The following table represents total assets by segment as of September 30, 2019 and December 31, 2018 (in millions) : Driveline Metal Forming Casting Corporate and Elims Total Total Assets at September 30, 2019 $ 3,649.4 $ 2,579.9 $ 454.7 $ 632.3 $ 7,316.3 Total Assets at December 31, 2018 3,529.2 2,723.0 664.7 593.8 7,510.7 The following table represents a reconciliation of Total Segment Adjusted EBITDA to consolidated income before income taxes for the three months and nine months ended September 30, 2019 and 2018 (in millions) : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total segment adjusted EBITDA $ 265.8 $ 275.0 $ 776.8 $ 939.9 Interest expense (54.3 ) (54.9 ) (163.9 ) (162.5 ) Depreciation and amortization (134.2 ) (132.9 ) (411.5 ) (390.9 ) Restructuring and acquisition-related costs (11.7 ) (11.7 ) (36.0 ) (66.8 ) Gain on sale of business — — — 15.5 Gain on settlement of capital lease — — — 15.6 Debt refinancing and redemption costs (5.1 ) — (7.5 ) (14.6 ) Impairment charge (225.0 ) — (225.0 ) — Income (loss) before income taxes $ (164.5 ) $ 75.5 $ (67.1 ) $ 336.2 |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract] | |
Supplemental Guarantor Disclosure [Text Block] | 17. 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 6.625% Notes, 6.50% Notes, 6.25% Notes (due 2026), and 6.25% Notes (due 2025) 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 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 Operations Three Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2019 Net sales External $ — $ 205.7 $ 506.5 $ 965.2 $ — $ 1,677.4 Intercompany — 0.5 77.0 16.5 (94.0 ) — Total net sales — 206.2 583.5 981.7 (94.0 ) 1,677.4 Cost of goods sold — 221.2 529.6 771.9 (94.0 ) 1,428.7 Gross profit (loss) — (15.0 ) 53.9 209.8 — 248.7 Selling, general and administrative expenses — 68.9 6.8 17.0 — 92.7 Amortization of intangible assets — 1.4 21.4 0.9 — 23.7 Impairment charges — — 225.0 — — 225.0 Restructuring and acquisition-related costs — 6.2 4.1 1.4 — 11.7 Operating income (loss) — (91.5 ) (203.4 ) 190.5 — (104.4 ) Non-operating income (expense), net — (62.7 ) 2.3 0.3 — (60.1 ) Income (loss) before income taxes — (154.2 ) (201.1 ) 190.8 — (164.5 ) Income tax expense (benefit) — (8.5 ) (46.8 ) 14.9 — (40.4 ) Earnings (loss) from equity in subsidiaries (124.2 ) 50.5 38.2 — 35.5 — Net income (loss) before royalties (124.2 ) (95.2 ) (116.1 ) 175.9 35.5 (124.1 ) Royalties — 86.6 0.7 (87.3 ) — — Net income (loss) after royalties (124.2 ) (8.6 ) (115.4 ) 88.6 35.5 (124.1 ) Net income attributable to noncontrolling interests — — — (0.1 ) — (0.1 ) Net income (loss) attributable to AAM $ (124.2 ) $ (8.6 ) $ (115.4 ) $ 88.5 $ 35.5 $ (124.2 ) Other comprehensive income (loss), net of tax (44.8 ) (26.4 ) (35.4 ) (36.4 ) 98.2 (44.8 ) Comprehensive income (loss) attributable to AAM $ (169.0 ) $ (35.0 ) $ (150.8 ) $ 52.1 $ 133.7 $ (169.0 ) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2018 Net sales External $ — $ 247.1 $ 544.3 $ 1,025.6 $ — $ 1,817.0 Intercompany — 0.7 75.6 10.8 (87.1 ) — Total net sales — 247.8 619.9 1,036.4 (87.1 ) 1,817.0 Cost of goods sold — 220.6 594.2 821.9 (87.1 ) 1,549.6 Gross profit — 27.2 25.7 214.5 — 267.4 Selling, general and administrative expenses — 63.4 19.6 13.3 — 96.3 Amortization of intangible assets — 1.0 22.9 0.9 — 24.8 Restructuring and acquisition-related costs — 5.0 3.9 2.8 — 11.7 Operating income (loss) — (42.2 ) (20.7 ) 197.5 — 134.6 Non-operating income (expense), net — (60.0 ) 2.8 (1.9 ) — (59.1 ) Income (loss) before income taxes — (102.2 ) (17.9 ) 195.6 — 75.5 Income tax expense (benefit) — (1.0 ) 0.1 12.4 — 11.5 Earnings from equity in subsidiaries 63.8 68.1 33.8 — (165.7 ) — Net income (loss) before royalties 63.8 (33.1 ) 15.8 183.2 (165.7 ) 64.0 Royalties — 87.6 0.7 (88.3 ) — — Net income after royalties 63.8 54.5 16.5 94.9 (165.7 ) 64.0 Net income attributable to noncontrolling interests — — — (0.2 ) — (0.2 ) Net income attributable to AAM $ 63.8 $ 54.5 $ 16.5 $ 94.7 $ (165.7 ) $ 63.8 Other comprehensive income (loss), net of tax 1.5 1.0 (10.3 ) — 9.3 1.5 Comprehensive income attributable to AAM $ 65.3 $ 55.5 $ 6.2 $ 94.7 $ (156.4 ) $ 65.3 Condensed Consolidating Statements of Operations Nine Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2019 Net sales External $ — $ 711.8 $ 1,561.8 $ 2,827.3 $ — $ 5,100.9 Intercompany — 1.5 219.8 37.2 (258.5 ) — Total net sales — 713.3 1,781.6 2,864.5 (258.5 ) 5,100.9 Cost of goods sold — 721.1 1,612.2 2,306.9 (258.5 ) 4,381.7 Gross profit (loss) — (7.8 ) 169.4 557.6 — 719.2 Selling, general and administrative expenses — 208.9 22.4 43.4 — 274.7 Amortization of intangible assets — 4.3 66.6 2.7 — 73.6 Impairment charges — — 225.0 — — 225.0 Restructuring and acquisition-related costs — 17.1 12.3 6.6 — 36.0 Operating income (loss) — (238.1 ) (156.9 ) 504.9 — 109.9 Non-operating income (expense), net — (184.0 ) 7.0 — — (177.0 ) Income (loss) before income taxes — (422.1 ) (149.9 ) 504.9 — (67.1 ) Income tax expense (benefit) — (23.2 ) (46.7 ) 32.5 — (37.4 ) Earnings (loss) from equity in subsidiaries (30.1 ) 131.9 105.3 — (207.1 ) — Net income (loss) before royalties (30.1 ) (267.0 ) 2.1 472.4 (207.1 ) (29.7 ) Royalties — 241.2 2.2 (243.4 ) — — Net income (loss) after royalties (30.1 ) (25.8 ) 4.3 229.0 (207.1 ) (29.7 ) Net income attributable to noncontrolling interests — — — (0.4 ) — (0.4 ) Net income (loss) attributable to AAM $ (30.1 ) $ (25.8 ) $ 4.3 $ 228.6 $ (207.1 ) $ (30.1 ) Other comprehensive income (loss), net of tax (58.9 ) (40.2 ) (32.1 ) (29.5 ) 101.8 (58.9 ) Comprehensive income (loss) attributable to AAM $ (89.0 ) $ (66.0 ) $ (27.8 ) $ 199.1 $ (105.3 ) $ (89.0 ) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2018 Net sales External $ — $ 851.4 $ 1,699.2 $ 3,025.7 $ — $ 5,576.3 Intercompany — 4.0 231.6 31.1 (266.7 ) — Total net sales — 855.4 1,930.8 3,056.8 (266.7 ) 5,576.3 Cost of goods sold — 804.5 1,713.3 2,410.1 (266.7 ) 4,661.2 Gross profit — 50.9 217.5 646.7 — 915.1 Selling, general and administrative expenses — 183.4 61.4 43.8 — 288.6 Amortization of intangible assets — 3.9 68.0 2.6 — 74.5 Restructuring and acquisition-related costs — 31.1 31.8 3.9 — 66.8 Gain on sale of business — — (15.5 ) — — (15.5 ) Operating income (loss) — (167.5 ) 71.8 596.4 — 500.7 Non-operating income (expense), net — (193.8 ) 11.0 18.3 — (164.5 ) Income (loss) before income taxes — (361.3 ) 82.8 614.7 — 336.2 Income tax expense — 8.1 0.6 22.7 — 31.4 Earnings from equity in subsidiaries 304.3 241.6 141.6 — (687.5 ) — Net income (loss) before royalties 304.3 (127.8 ) 223.8 592.0 (687.5 ) 304.8 Royalties — 256.8 2.6 (259.4 ) — — Net income after royalties 304.3 129.0 226.4 332.6 (687.5 ) 304.8 Net income attributable to noncontrolling interests — — — (0.5 ) — (0.5 ) Net income attributable to AAM $ 304.3 $ 129.0 $ 226.4 $ 332.1 $ (687.5 ) $ 304.3 Other comprehensive loss, net of tax (20.9 ) (2.6 ) (50.5 ) (37.3 ) 90.4 (20.9 ) Comprehensive income attributable to AAM $ 283.4 $ 126.4 $ 175.9 $ 294.8 $ (597.1 ) $ 283.4 Condensed Consolidating Balance Sheets (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated September 30, 2019 Assets Current assets Cash and cash equivalents $ — $ 79.4 $ 0.1 $ 295.6 $ — $ 375.1 Accounts receivable, net — 95.2 230.8 650.9 — 976.9 Intercompany receivables — 4,864.1 4,722.1 183.0 (9,769.2 ) — Inventories, net — 62.8 116.9 223.4 — 403.1 Prepaid expenses and other — 34.3 3.7 92.9 — 130.9 Current assets held-for-sale — — 312.2 — — 312.2 Total current assets — 5,135.8 5,385.8 1,445.8 (9,769.2 ) 2,198.2 Property, plant and equipment, net — 294.1 554.5 1,477.8 — 2,326.4 Goodwill — — 719.0 408.5 — 1,127.5 Intangible assets, net — 15.4 836.9 29.2 — 881.5 Intercompany notes and accounts receivable — 1,542.1 186.7 — (1,728.8 ) — Other assets and deferred charges — 339.7 118.1 324.9 — 782.7 Investment in subsidiaries 2,721.4 2,155.9 1,504.1 — (6,381.4 ) — Total assets $ 2,721.4 $ 9,483.0 $ 9,305.1 $ 3,686.2 $ (17,879.4 ) $ 7,316.3 Liabilities and Stockholders’ Equity Current liabilities Current portion of long-term debt $ — $ 2.1 $ 5.3 $ 16.4 $ — $ 23.8 Accounts payable — 101.3 169.1 433.3 — 703.7 Intercompany payables — 3,931.7 5,835.5 2.0 (9,769.2 ) — Accrued expenses and other — 165.2 34.9 207.8 — 407.9 Current liabilities held-for-sale — — 101.7 — — 101.7 Total current liabilities — 4,200.3 6,146.5 659.5 (9,769.2 ) 1,237.1 Intercompany notes and accounts payable 1,311.8 36.0 — 381.0 (1,728.8 ) — Long-term debt, net — 3,581.8 — 91.5 — 3,673.3 Other long-term liabilities — 503.0 243.1 250.2 — 996.3 Total liabilities 1,311.8 8,321.1 6,389.6 1,382.2 (11,498.0 ) 5,906.7 Total AAM Stockholders’ equity 1,406.8 1,161.9 2,915.5 2,301.2 (6,378.6 ) 1,406.8 Noncontrolling interests in subsidiaries 2.8 — — 2.8 (2.8 ) 2.8 Total stockholders’ equity 1,409.6 1,161.9 2,915.5 2,304.0 (6,381.4 ) 1,409.6 Total liabilities and stockholders’ equity $ 2,721.4 $ 9,483.0 $ 9,305.1 $ 3,686.2 $ (17,879.4 ) $ 7,316.3 Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated December 31, 2018 Assets Current assets Cash and cash equivalents $ — $ 36.7 $ 0.2 $ 439.5 $ — $ 476.4 Accounts receivable, net — 122.7 287.7 556.1 — 966.5 Intercompany receivables — 3,337.2 2,356.3 93.5 (5,787.0 ) — Inventories, net — 42.5 157.7 259.5 — 459.7 Prepaid expenses and other — 34.4 6.0 86.8 — 127.2 Total current assets — 3,573.5 2,807.9 1,435.4 (5,787.0 ) 2,029.8 Property, plant and equipment, net — 275.8 758.6 1,480.0 — 2,514.4 Goodwill — — 719.0 422.8 — 1,141.8 Intangible assets, net — 18.6 1,059.6 32.9 — 1,111.1 Intercompany notes and accounts receivable — 1,316.8 144.5 — (1,461.3 ) — Other assets and deferred charges — 319.8 126.4 267.4 — 713.6 Investment in subsidiaries 2,790.5 2,241.5 1,748.7 — (6,780.7 ) — Total assets $ 2,790.5 $ 7,746.0 $ 7,364.7 $ 3,638.5 $ (14,029.0 ) $ 7,510.7 Liabilities and Stockholders’ Equity Current liabilities Current portion of long-term debt $ — $ 100.0 $ — $ 21.6 $ — $ 121.6 Accounts payable — 94.2 246.5 499.5 — 840.2 Intercompany payables — 2,050.0 3,615.7 121.3 (5,787.0 ) — Accrued expenses and other — 169.0 35.8 190.2 — 395.0 Total current liabilities — 2,413.2 3,898.0 832.6 (5,787.0 ) 1,356.8 Intercompany notes and accounts payable 1,304.2 12.5 — 144.6 (1,461.3 ) — Long-term debt, net — 3,578.3 3.0 105.5 — 3,686.8 Other long-term liabilities — 508.9 271.7 200.2 — 980.8 Total liabilities 1,304.2 6,512.9 4,172.7 1,282.9 (7,248.3 ) 6,024.4 Total AAM Stockholders’ equity 1,483.9 1,233.1 3,192.0 2,353.2 (6,778.3 ) 1,483.9 Noncontrolling interests in subsidiaries 2.4 — — 2.4 (2.4 ) 2.4 Total stockholders’ equity 1,486.3 1,233.1 3,192.0 2,355.6 (6,780.7 ) 1,486.3 Total liabilities and stockholders’ equity $ 2,790.5 $ 7,746.0 $ 7,364.7 $ 3,638.5 $ (14,029.0 ) $ 7,510.7 Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2019 Net cash provided by operating activities $ — $ 214.1 $ 20.4 $ 144.1 $ — $ 378.6 Investing activities Purchases of property, plant and equipment — (46.8 ) (91.0 ) (197.5 ) — (335.3 ) Proceeds from sale of property, plant and equipment — — 1.7 0.3 — 2.0 Investment in joint ventures — — — (2.2 ) — (2.2 ) Intercompany activity — — (12.0 ) 12.0 — — Net cash used in investing activities — (46.8 ) (101.3 ) (187.4 ) — (335.5 ) Financing activities Net debt activity — (113.8 ) (0.2 ) (15.3 ) — (129.3 ) Debt issuance costs — (3.3 ) — — — (3.3 ) Purchase of treasury stock (7.5 ) — — — — (7.5 ) Intercompany activity 7.5 (7.5 ) 81.0 (81.0 ) — — Net cash used in financing activities — (124.6 ) 80.8 (96.3 ) — (140.1 ) Effect of exchange rate changes on cash — — — (4.3 ) — (4.3 ) Net increase (decrease) in cash, cash equivalents and restricted cash — 42.7 (0.1 ) (143.9 ) — (101.3 ) Cash, cash equivalents and restricted cash at beginning of period — 36.7 2.7 439.5 — 478.9 Cash, cash equivalents and restricted cash at end of period $ — $ 79.4 $ 2.6 $ 295.6 $ — $ 377.6 Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2018 Net cash provided by operating activities $ — $ 240.0 $ 103.0 $ 170.2 $ — $ 513.2 Investing activities Purchases of property, plant and equipment — (51.8 ) (121.2 ) (218.8 ) — (391.8 ) Proceeds from sale of property, plant and equipment — — 2.7 0.5 — 3.2 Purchase buyouts of leased equipment — — (0.5 ) — — (0.5 ) Proceeds from sale of business, net — — 42.7 4.4 — 47.1 Acquisition of business, net of cash acquired — — — (1.3 ) — (1.3 ) Intercompany activity — — (43.8 ) 43.8 — — Net cash used in investing activities — (51.8 ) (120.1 ) (171.4 ) — (343.3 ) Financing activities Net debt activity — (140.3 ) (0.6 ) 54.2 — (86.7 ) Debt issuance costs — (6.9 ) — — — (6.9 ) Purchase of treasury stock (3.7 ) — — — — (3.7 ) Purchase of noncontrolling interest — — (2.2 ) — — (2.2 ) Intercompany activity 3.7 (3.7 ) 22.5 (22.5 ) — — Net cash provided by (used in) financing activities — (150.9 ) 19.7 31.7 — (99.5 ) Effect of exchange rate changes on cash — — — (5.3 ) — (5.3 ) Net increase in cash, cash equivalents and restricted cash — 37.3 2.6 25.2 — 65.1 Cash, cash equivalents and restricted cash at beginning of period — 91.9 0.1 284.8 — 376.8 Cash, cash equivalents and restricted cash at end of period $ — $ 129.2 $ 2.7 $ 310.0 $ — $ 441.9 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation We have prepared the accompanying interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934. These condensed consolidated financial statements are unaudited but include all normal recurring adjustments, which we consider necessary for a fair presentation of the information set forth herein. Results of operations for the periods presented are not necessarily indicative of the results for the full fiscal year. The balance sheet at December 31, 2018 presented herein has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete consolidated financial statements. In order to prepare the accompanying interim condensed consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts and disclosures in our interim condensed consolidated financial statements. Actual results could differ from those estimates. For further information, refer to the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . |
New Accounting Pronouncements, Policy [Policy Text Block] | Effect of New Accounting Standards Accounting Standard Update 2018-15 On August 15, 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15 - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (Topic 350-40). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing or hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance becomes effective at the beginning of our 2020 fiscal year and may be applied either retrospectively or prospectively. We expect to adopt this guidance prospectively on January 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements. Accounting Standards Update 2018-02 On February 14, 2018, the FASB issued ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220). ASU 2018-02 allows companies the option to reclassify disproportionate tax effects in accumulated other comprehensive income (AOCI) caused by the 2017 Tax Cuts and Jobs Act, also known as stranded tax effects, to retained earnings. ASU 2018-02 also requires expanded disclosures related to disproportionate income tax effects from AOCI, some of which are applicable to all companies regardless of whether the option to reclassify the stranded tax effects is exercised. This guidance became effective on January 1, 2019, and we elected to reclassify the stranded tax effects caused by the 2017 Tax Cuts and Jobs Act, resulting in a decrease in Accumulated other comprehensive income (loss) and an increase in Retained earnings of $27.7 million at January 1, 2019. Accounting Standards Update 2016-02 On February 25, 2016, the FASB issued ASU 2016-02 - Leases (Topic 842) , and has subsequently issued ASU 2017-13 - Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840) and Leases (Topic 842) (collectively the Lease ASUs) which supersede the existing lease accounting guidance and establish new criteria for recognizing lease assets and liabilities. The most significant impact of these updates, to AAM, is that a lessee is required to recognize a "right-of-use" asset and lease liability for operating lease agreements that were not previously included on the balance sheet under previous lease guidance. Expense recognition in the statement of income, along with cash flow statement classification for both financing (capital) and operating leases under the new standard are not significantly changed from previous lease guidance. This guidance became effective for AAM on January 1, 2019. See Note 3 - Leasing for additional detail regarding the adoption of ASU 2016-02. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The assets and liabilities classified as held-for-sale are as follows (in millions): September 30, 2019 Accounts receivable, net $ 89.1 Inventories 32.8 Prepaid expenses and other 1.5 Property, plant and equipment, net 184.6 Intangible assets, net 158.2 Other assets and deferred charges 71.0 Impairment of carrying value (225.0 ) Total assets held-for-sale* $ 312.2 Accounts payable $ 71.3 Accrued compensation and benefits 6.8 Accrued expenses and other 3.4 Postretirement benefits and other long-term liabilities 20.2 Total liabilities held-for-sale* $ 101.7 * The assets and liabilities classified as held-for-sale are classified entirely as current in the September 30, 2019 Condensed Consolidated Balance Sheet as we expect to complete the sale in the fourth quarter of 2019. As this transaction does not qualify for classification as discontinued operations, no reclassification of the assets and liabilities in the December 31, 2018 Condensed Consolidated Balance Sheet was required. |
Leasing (Tables)
Leasing (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leasing [Abstract] | |
Components of lease cost [Table Text Block] | Lease cost consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2019 2019 (in millions) Finance lease cost Amortization of right-of-use assets $ 0.2 $ 0.6 Interest on lease liabilities 0.1 0.2 Total finance lease cost 0.3 0.8 Operating lease cost 6.5 19.9 Short-term lease cost 1.4 4.8 Variable lease cost 2.5 6.7 Total lease cost $ 10.7 $ 32.2 |
Supplemental lease information [Table Text Block] | The following table summarizes additional information related to our lease agreements. Nine Months Ended September 30, 2019 (in millions, except lease term and rate) Cash paid for amounts included in measurement of lease liabilities Operating cash flows from finance leases $ 0.2 Operating cash flows from operating leases 18.2 Financing cash flows from finance leases 0.6 Weighted-average remaining lease term - finance leases 3.1 years Weighted-average remaining lease term - operating leases 7.5 years Weighted-average discount rate - finance leases 8.1 % Weighted-average discount rate - operating leases 5.6 % |
Future minimum lease payments [Table Text Block] | Future undiscounted minimum payments under non-cancelable leases are as follows: Finance Leases Operating Leases (in millions) 2019 (excluding the nine months ended September 30, 2019) $ 0.3 $ 6.9 2020 1.1 25.6 2021 1.0 18.1 2022 0.9 14.5 2023 0.9 9.7 Thereafter — 38.9 Total future undiscounted minimum lease payments 4.2 113.7 Less: Impact of discounting (1.4 ) (20.0 ) Total $ 2.8 $ 93.7 |
Right of use assets and lease liabilities [Table Text Block] | The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheet as of September 30, 2019 are as follows: Finance Leases Operating Leases (in millions) Property, plant and equipment, net $ 2.8 $ — Other assets and deferred charges — 93.7 Total $ 2.8 $ 93.7 Accrued expenses and other $ 0.9 $ 21.4 Postretirement benefits and other long-term liabilities 1.9 72.3 Total $ 2.8 $ 93.7 |
Restructuring and Acquisition_2
Restructuring and Acquisition-Related Costs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | A summary of our restructuring activity for the first nine months of 2019 and 2018 is shown below: Severance Charges Implementation Costs Asset Impairment Charges Total (in millions) Accrual at December 31, 2017 $ 0.3 $ — $ — $ 0.3 Charges 2.3 8.8 26.6 37.7 Cash utilization (0.4 ) (6.6 ) — (7.0 ) Non-cash utilization — — (26.6 ) (26.6 ) Accrual at September 30, 2018 $ 2.2 $ 2.2 $ — $ 4.4 Accrual at December 31, 2018 $ 2.4 $ 1.6 $ — $ 4.0 Charges 10.4 13.1 — 23.5 Cash utilization (11.7 ) (9.9 ) — (21.6 ) Accrual at September 30, 2019 $ 1.1 $ 4.8 $ — $ 5.9 |
Business Combination, Separately Recognized Transactions [Table Text Block] | In 2017, we completed the acquisitions of MPG and USM Mexico Manufacturing LLC (USM Mexico). During the nine months ended September 30, 2019 , we incurred the following integration charges related to these acquisitions: Integration Expenses (in millions) Charges for the nine months ended September 30, 2019 $ 12.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table provides a reconciliation of changes in goodwill for the nine months ended September 30, 2019 : Driveline Metal Forming Powertrain Casting Consolidated (in millions) Balance at December 31, 2018 $ 212.1 $ 552.4 $ 377.3 $ — $ 1,141.8 Reorganization 187.2 190.1 (377.3 ) — — Foreign currency translation (5.4 ) (8.9 ) — — (14.3 ) Balance at September 30, 2019 $ 393.9 $ 733.6 $ — $ — $ 1,127.5 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table provides a reconciliation of the gross carrying amount and associated accumulated amortization for AAM's other intangible assets, which are all subject to amortization: September 30, December 31, 2019 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Capitalized computer software $ 41.4 $ (26.0 ) $ 15.4 $ 38.0 $ (20.1 ) $ 17.9 Customer platforms 856.2 (158.6 ) 697.6 952.2 (123.5 ) 828.7 Customer relationships 53.0 (8.5 ) 44.5 147.0 (16.5 ) 130.5 Technology and other 155.7 (31.7 ) 124.0 156.2 (22.2 ) 134.0 Total $ 1,106.3 $ (224.8 ) $ 881.5 $ 1,293.4 $ (182.3 ) $ 1,111.1 Amortization expense for our intangible assets was $23.7 million and $73.6 million for the three and nine months ended September 30, 2019 , respectively, and $24.8 million and $74.5 million for the three and nine months ended September 30, 2018 , respectively. Estimated amortization expense for the full year 2019 is approximately $95 million and estimated amortization expense for each of the full years 2020 through 2023 is approximately $87 million . |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: September 30, 2019 December 31, 2018 (in millions) Raw materials and work-in-progress $ 337.3 $ 375.1 Finished goods 88.0 99.0 Gross inventories 425.3 474.1 Inventory valuation reserves (22.2 ) (14.4 ) Inventories, net $ 403.1 $ 459.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: September 30, 2019 December 31, 2018 (in millions) Revolving Credit Facility $ — $ — Term Loan A Facility 340.0 83.8 Term Loan B Facility 1,248.6 1,511.2 7.75% Notes due 2019 — 100.0 6.625% Notes due 2022 450.0 450.0 6.50% Notes due 2027 500.0 500.0 6.25% Notes due 2026 400.0 400.0 6.25% Notes due 2025 700.0 700.0 Foreign credit facilities and other 113.2 127.1 Capital lease obligations — 3.4 Total debt 3,751.8 3,875.5 Less: Current portion of long-term debt 23.8 121.6 Long-term debt 3,728.0 3,753.9 Less: Debt issuance costs 54.7 67.1 Long-term debt, net $ 3,673.3 $ 3,686.8 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The estimated fair value of our financial assets and liabilities that are recognized at fair value on a recurring basis, using available market information and other observable data, are as follows: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Balance Sheet Classification Cash equivalents $ 160.7 $ 160.7 $ 44.0 $ 44.0 Level 1 Prepaid expenses and other Cash flow hedges - currency forward contracts 2.3 2.3 1.3 1.3 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 1.6 1.6 0.9 0.9 Level 2 Nondesignated - currency forward contracts 0.2 0.2 0.6 0.6 Level 2 Other assets and deferred charges Cash flow hedges - currency forward contracts 0.9 0.9 0.4 0.4 Level 2 Cash flow hedges - fixed-to-fixed cross-currency swap 7.0 7.0 — — Level 2 Cash flow hedges - variable-to-fixed interest rate swap 4.0 4.0 1.6 1.6 Level 2 Accrued expenses and other Cash flow hedges - currency forward contracts 0.3 0.3 0.8 0.8 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 10.0 10.0 0.7 0.7 Level 2 Nondesignated - currency forward contracts 0.4 0.4 0.4 0.4 Level 2 Postretirement benefits and other long-term liabilities Cash flow hedges - currency forward contracts 0.1 0.1 0.9 0.9 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 24.2 24.2 6.9 6.9 Level 2 |
Fair Value, Financial Instruments not Carried at Fair Value [Table Text Block] | We estimated the fair value of the amounts outstanding on our debt using available market information and other observable data, to be as follows: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Revolving Credit Facility $ — $ — $ — $ — Level 2 Term Loan A Facility 340.0 334.9 83.8 79.5 Level 2 Term Loan B Facility 1,248.6 1,217.4 1,511.2 1,420.6 Level 2 7.75% Notes due 2019 — — 100.0 102.1 Level 2 6.625% Notes due 2022 450.0 454.5 450.0 444.4 Level 2 6.50% Notes due 2027 500.0 474.4 500.0 446.3 Level 2 6.25% Notes due 2026 400.0 380.0 400.0 358.0 Level 2 6.25% Notes due 2025 700.0 665.0 700.0 636.7 Level 2 |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table summarizes the impairments of long-lived assets measured at fair value on a nonrecurring basis subsequent to initial recognition: Balance Sheet Classification Fair Value at September 30, 2018 Asset Impairment for the Nine Months Ended September 30, 2018 Property, plant and equipment, net $ — $ 25.7 Other assets and deferred charges — 0.9 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The following table provides a reconciliation of changes in the product warranty liability: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Beginning balance $ 55.7 $ 58.4 $ 57.7 $ 49.5 Accruals 5.3 4.4 14.7 14.9 Payments (0.9 ) (2.2 ) (8.2 ) (3.3 ) Adjustment to prior period accruals 0.7 5.1 (3.6 ) 4.9 Foreign currency translation (0.5 ) (0.2 ) (0.3 ) (0.5 ) Ending balance $ 60.3 $ 65.5 $ 60.3 $ 65.5 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table summarizes the reclassification of derivative gains and losses into net income from accumulated other comprehensive income (loss) for those derivative instruments designated as cash flow hedges under ASC 815 - Derivatives and Hedging : Location Gain (Loss) Reclassified During Total of Financial Gain (Loss) Expected of Gain (Loss) Three Months Ended Nine Months Ended Statement to be Reclassified Reclassified into September 30, September 30, Line Item During the Net Income 2019 2018 2019 2018 2019 Next 12 Months (in millions) Currency forward contracts Cost of Goods Sold $ 0.9 $ (0.9 ) $ 1.8 $ (3.7 ) $ 4,381.7 $ 2.0 Fixed-to-fixed cross-currency swap Other Income (Expense), net 7.6 — 7.6 — (9.0 ) — Variable-to-fixed interest rate swap Interest Expense (1.7 ) 0.8 0.2 2.1 (163.9 ) (9.1 ) See Note 14 - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (AOCI) for amounts recognized in other comprehensive income (loss) during the three and nine months ended September 30, 2019 and 2018 . The following table summarizes the amount and location of gains and losses recognized in the Condensed Consolidated Statements of Operations for those derivative instruments not designated as hedging instruments under ASC 815: Gain (Loss) Recognized During Total of Financial Location of Gain (Loss) Three Months Ended Nine Months Ended Statement Line Recognized in September 30, September 30, Item Net Income 2019 2018 2019 2018 2019 (in millions) Currency forward contracts Cost of Goods Sold $ (0.5 ) $ 2.3 $ 1.3 $ 2.8 $ 4,381.7 Currency forward contracts Other Income (Expense), net 0.1 (0.5 ) (0.5 ) 1.3 (9.0 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit (Credits) Costs [Table Text Block] | The components of net periodic benefit cost (credit) are as follows: Pension Benefits Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Service cost $ 0.4 $ 1.1 $ 1.1 $ 3.2 Interest cost 7.1 6.9 21.3 20.6 Expected asset return (10.3 ) (11.4 ) (30.9 ) (34.4 ) Amortized loss 1.5 2.2 4.7 6.6 Amortized prior service cost — — — 0.1 Curtailment — — — 3.2 Settlement 0.4 — 0.4 — Net periodic benefit credit $ (0.9 ) $ (1.2 ) $ (3.4 ) $ (0.7 ) Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Service cost $ — $ 0.1 $ 0.2 $ 0.3 Interest cost 3.3 3.1 9.7 9.3 Amortized loss — 0.2 0.1 0.6 Amortized prior service credit (0.4 ) (0.7 ) (1.2 ) (2.0 ) Net periodic benefit cost $ 2.9 $ 2.7 $ 8.8 $ 8.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of our basic and diluted EPS available to shareholders of common stock (excluding participating securities): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions, except per share data) Numerator Net income (loss) attributable to AAM $ (124.2 ) $ 63.8 $ (30.1 ) $ 304.3 Less: Net income attributable to participating securities — (2.0 ) — (8.9 ) Net income (loss) attributable to common shareholders - Basic and Dilutive $ (124.2 ) $ 61.8 $ (30.1 ) $ 295.4 Denominators Basic common shares outstanding - Weighted-average shares outstanding 115.8 115.3 115.6 115.0 Less: Participating securities (3.3 ) (3.6 ) (3.3 ) (3.4 ) Weighted-average common shares outstanding 112.5 111.7 112.3 111.6 Effect of dilutive securities - Dilutive stock-based compensation — 1.0 — 0.7 Diluted shares outstanding - Adjusted weighted-average shares after assumed conversions 112.5 112.7 112.3 112.3 Basic EPS $ (1.10 ) $ 0.55 $ (0.27 ) $ 2.65 Diluted EPS $ (1.10 ) $ 0.55 $ (0.27 ) $ 2.63 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Reclassification adjustments and other activity impacting accumulated other comprehensive income (loss) during the three months ended September 30, 2019 and September 30, 2018 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at June 30, 2019 $ (239.8 ) $ (94.2 ) $ (19.4 ) $ (353.4 ) Other comprehensive income (loss) before reclassifications (2.9 ) (37.1 ) (0.7 ) (40.7 ) Income tax effect of other comprehensive income (loss) before reclassifications 0.6 — (0.1 ) 0.5 Amounts reclassified from accumulated other comprehensive loss 1.3 (a) — (6.8 ) (b) (5.5 ) Income taxes reclassified into net income (0.3 ) — 1.2 0.9 Net change in accumulated other comprehensive loss (1.3 ) (37.1 ) (6.4 ) (44.8 ) Balance at September 30, 2019 $ (241.1 ) $ (131.3 ) $ (25.8 ) $ (398.2 ) Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at June 30, 2018 $ (238.5 ) $ (77.2 ) $ 0.6 $ (315.1 ) Other comprehensive income (loss) before reclassifications — (11.9 ) 12.8 0.9 Income tax effect of other comprehensive income (loss) before reclassifications — — (0.7 ) (0.7 ) Amounts reclassified from accumulated other comprehensive income (loss) 1.3 (a) — 0.1 (b) 1.4 Income taxes reclassified into net income (0.3 ) — 0.2 (0.1 ) Net change in accumulated other comprehensive income (loss) 1.0 (11.9 ) 12.4 1.5 Balance at September 30, 2018 $ (237.5 ) $ (89.1 ) $ 13.0 $ (313.6 ) (a) The amount reclassified from AOCI included $1.2 million in COGS and $0.1 million in SG&A for the three months ended September 30, 2019 and $1.5 million in COGS and $(0.1) million in SG&A for the three months ended September 30, 2018. (b) The amounts reclassified from AOCI included $(0.9) million in COGS, $1.7 million in interest expense and $(7.6) million in other income for the three months ended September 30, 2019 and $0.9 million in COGS and $(0.8) million in interest expense for the three months ended September 30, 2018. Reclassification adjustments and other activity impacting accumulated other comprehensive income (loss) during the nine months ended September 30, 2019 and September 30, 2018 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2018 $ (213.9 ) $ (96.6 ) $ (1.1 ) $ (311.6 ) Other comprehensive income (loss) before reclassifications (30.8 ) (a) (34.7 ) (22.4 ) (87.9 ) Income tax effect of other comprehensive income (loss) before reclassifications 0.6 — 5.7 6.3 Amounts reclassified from accumulated other comprehensive loss 3.8 (b) — (9.6 ) (c) (5.8 ) Income taxes reclassified into net income (0.8 ) — 1.6 0.8 Net change in accumulated other comprehensive loss (27.2 ) (34.7 ) (24.7 ) (86.6 ) Balance at September 30, 2019 $ (241.1 ) $ (131.3 ) $ (25.8 ) $ (398.2 ) Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2017 $ (252.0 ) $ (34.1 ) $ (6.6 ) $ (292.7 ) Other comprehensive income (loss) before reclassifications 14.7 (55.2 ) 19.7 (20.8 ) Income tax effect of other comprehensive income (loss) before reclassifications (3.6 ) — (2.2 ) (5.8 ) Amounts reclassified from accumulated other comprehensive income (loss) 4.6 (b) 0.2 1.6 (c) 6.4 Income taxes reclassified into net income (1.2 ) — 0.5 (0.7 ) Net change in accumulated other comprehensive income (loss) 14.5 (55.0 ) 19.6 (20.9 ) Balance at September 30, 2018 $ (237.5 ) $ (89.1 ) $ 13.0 $ (313.6 ) (a) ASU 2018-02 became effective on January 1, 2019, and we elected to reclassify the stranded tax effects caused by the 2017 Tax Cuts and Jobs Act, resulting in a decrease in Accumulated other comprehensive income (loss) of $27.7 million at January 1, 2019. See Note 1 - Organization and Basis of Presentation for further detail. (b) The amount reclassified from AOCI included $3.6 million in COGS and $0.2 million in SG&A for the nine months ended September 30, 2019 and $4.5 million in COGS and $0.1 million in SG&A for the nine months ended September 30, 2018. (c) The amounts reclassified from AOCI included $(1.8) million in COGS, $(0.2) million in interest expense and $(7.6) million in other income for the nine months ended September 30, 2019 and $3.7 million in COGS and $(2.1) million in interest expense for the nine months ended September 30, 2018. |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Net Sales Net sales recognized from contracts with customers, disaggregated by segment and geographical location, are presented in the following table for the three and nine months ended September 30, 2019 and 2018 . Net sales are attributed to regions based on the location of production. Intersegment sales have been excluded from the table. In the first quarter of 2019, we reorganized our business to disaggregate our former Powertrain business unit, with a portion moving to our Driveline business unit and a portion moving to our Metal Forming business unit. As a result, the Powertrain amounts previously reported for the three and nine months ended September 30, 2018 have been reclassified to Driveline and Metal Forming. Three Months Ended September 30, 2019 Driveline Metal Forming Casting Total North America $ 902.7 $ 296.9 $ 169.7 $ 1,369.3 Asia 131.0 10.3 — 141.3 Europe 77.9 61.1 — 139.0 South America 26.5 1.3 — 27.8 Total $ 1,138.1 $ 369.6 $ 169.7 $ 1,677.4 Three Months Ended September 30, 2018 Driveline Metal Forming Casting Total North America $ 946.0 $ 316.8 $ 193.8 $ 1,456.6 Asia 160.7 8.9 — 169.6 Europe 85.1 69.8 — 154.9 South America 34.6 1.3 — 35.9 Total $ 1,226.4 $ 396.8 $ 193.8 $ 1,817.0 Nine Months Ended September 30, 2019 Driveline Metal Forming Casting Total North America $ 2,644.1 $ 903.7 $ 553.9 $ 4,101.7 Asia 419.3 25.7 — 445.0 Europe 270.3 201.0 — 471.3 South America 78.2 4.7 — 82.9 Total $ 3,411.9 $ 1,135.1 $ 553.9 $ 5,100.9 Nine Months Ended September 30, 2018 Driveline Metal Forming Casting Total North America $ 2,892.5 $ 983.6 $ 613.2 $ 4,489.3 Asia 481.6 33.7 — 515.3 Europe 240.3 228.8 — 469.1 South America 98.9 3.7 — 102.6 Total $ 3,713.3 $ 1,249.8 $ 613.2 $ 5,576.3 |
Contract Assets and Liabilities
Contract Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Assets and Liabilities The following table summarizes our beginning and ending balances for accounts receivable and contract liabilities associated with our contracts with customers: Accounts Receivable, Net Contract Liabilities (Current) Contract Liabilities (Long-term) December 31, 2018 $ 966.5 $ 44.3 $ 77.6 September 30, 2019 976.9 22.6 83.1 Increase/(decrease) $ 10.4 $ (21.7 ) $ 5.5 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables represent information by reportable segment for the three months ended September 30, 2019 and 2018 (in millions) : Three Months Ended September 30, 2019 Driveline Metal Forming Casting Total Sales $ 1,146.7 $ 476.6 $ 209.0 $ 1,832.3 Less: intersegment sales 8.6 107.0 39.3 154.9 Net external sales $ 1,138.1 $ 369.6 $ 169.7 $ 1,677.4 Segment Adjusted EBITDA $ 171.6 $ 80.4 $ 13.8 $ 265.8 Three Months Ended September 30, 2018 Driveline Metal Forming Casting Total Sales $ 1,228.2 $ 509.0 $ 219.1 $ 1,956.3 Less: intersegment sales 1.8 112.2 25.3 139.3 Net external sales $ 1,226.4 $ 396.8 $ 193.8 $ 1,817.0 Segment Adjusted EBITDA $ 176.9 $ 83.6 $ 14.5 $ 275.0 The following tables represent information by reportable segment for the nine months ended September 30, 2019 and 2018 (in millions) : Nine Months Ended September 30, 2019 Driveline Metal Forming Casting Total Sales $ 3,422.5 $ 1,444.1 $ 655.0 $ 5,521.6 Less: intersegment sales 10.6 309.0 101.1 420.7 Net external sales $ 3,411.9 $ 1,135.1 $ 553.9 $ 5,100.9 Segment Adjusted EBITDA $ 461.7 $ 253.7 $ 61.4 $ 776.8 Nine Months Ended September 30, 2018 Driveline Metal Forming Casting Total Sales $ 3,718.6 $ 1,581.7 $ 701.3 $ 6,001.6 Less: intersegment sales 5.3 331.9 88.1 425.3 Net external sales $ 3,713.3 $ 1,249.8 $ 613.2 $ 5,576.3 Segment Adjusted EBITDA $ 570.9 $ 306.0 $ 63.0 $ 939.9 The following table represents total assets by segment as of September 30, 2019 and December 31, 2018 (in millions) : Driveline Metal Forming Casting Corporate and Elims Total Total Assets at September 30, 2019 $ 3,649.4 $ 2,579.9 $ 454.7 $ 632.3 $ 7,316.3 Total Assets at December 31, 2018 3,529.2 2,723.0 664.7 593.8 7,510.7 |
Reconciliation of Total Segment Adjusted EBITDA to Income Before Income Taxes [Table Text Block] | The following table represents a reconciliation of Total Segment Adjusted EBITDA to consolidated income before income taxes for the three months and nine months ended September 30, 2019 and 2018 (in millions) : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total segment adjusted EBITDA $ 265.8 $ 275.0 $ 776.8 $ 939.9 Interest expense (54.3 ) (54.9 ) (163.9 ) (162.5 ) Depreciation and amortization (134.2 ) (132.9 ) (411.5 ) (390.9 ) Restructuring and acquisition-related costs (11.7 ) (11.7 ) (36.0 ) (66.8 ) Gain on sale of business — — — 15.5 Gain on settlement of capital lease — — — 15.6 Debt refinancing and redemption costs (5.1 ) — (7.5 ) (14.6 ) Impairment charge (225.0 ) — (225.0 ) — Income (loss) before income taxes $ (164.5 ) $ 75.5 $ (67.1 ) $ 336.2 |
Supplemental Guarantor Conden_2
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract] | |
Supplemental Guarantor Consolidating Statement of Operations [Table Text Block] | Condensed Consolidating Statements of Operations Three Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2019 Net sales External $ — $ 205.7 $ 506.5 $ 965.2 $ — $ 1,677.4 Intercompany — 0.5 77.0 16.5 (94.0 ) — Total net sales — 206.2 583.5 981.7 (94.0 ) 1,677.4 Cost of goods sold — 221.2 529.6 771.9 (94.0 ) 1,428.7 Gross profit (loss) — (15.0 ) 53.9 209.8 — 248.7 Selling, general and administrative expenses — 68.9 6.8 17.0 — 92.7 Amortization of intangible assets — 1.4 21.4 0.9 — 23.7 Impairment charges — — 225.0 — — 225.0 Restructuring and acquisition-related costs — 6.2 4.1 1.4 — 11.7 Operating income (loss) — (91.5 ) (203.4 ) 190.5 — (104.4 ) Non-operating income (expense), net — (62.7 ) 2.3 0.3 — (60.1 ) Income (loss) before income taxes — (154.2 ) (201.1 ) 190.8 — (164.5 ) Income tax expense (benefit) — (8.5 ) (46.8 ) 14.9 — (40.4 ) Earnings (loss) from equity in subsidiaries (124.2 ) 50.5 38.2 — 35.5 — Net income (loss) before royalties (124.2 ) (95.2 ) (116.1 ) 175.9 35.5 (124.1 ) Royalties — 86.6 0.7 (87.3 ) — — Net income (loss) after royalties (124.2 ) (8.6 ) (115.4 ) 88.6 35.5 (124.1 ) Net income attributable to noncontrolling interests — — — (0.1 ) — (0.1 ) Net income (loss) attributable to AAM $ (124.2 ) $ (8.6 ) $ (115.4 ) $ 88.5 $ 35.5 $ (124.2 ) Other comprehensive income (loss), net of tax (44.8 ) (26.4 ) (35.4 ) (36.4 ) 98.2 (44.8 ) Comprehensive income (loss) attributable to AAM $ (169.0 ) $ (35.0 ) $ (150.8 ) $ 52.1 $ 133.7 $ (169.0 ) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2018 Net sales External $ — $ 247.1 $ 544.3 $ 1,025.6 $ — $ 1,817.0 Intercompany — 0.7 75.6 10.8 (87.1 ) — Total net sales — 247.8 619.9 1,036.4 (87.1 ) 1,817.0 Cost of goods sold — 220.6 594.2 821.9 (87.1 ) 1,549.6 Gross profit — 27.2 25.7 214.5 — 267.4 Selling, general and administrative expenses — 63.4 19.6 13.3 — 96.3 Amortization of intangible assets — 1.0 22.9 0.9 — 24.8 Restructuring and acquisition-related costs — 5.0 3.9 2.8 — 11.7 Operating income (loss) — (42.2 ) (20.7 ) 197.5 — 134.6 Non-operating income (expense), net — (60.0 ) 2.8 (1.9 ) — (59.1 ) Income (loss) before income taxes — (102.2 ) (17.9 ) 195.6 — 75.5 Income tax expense (benefit) — (1.0 ) 0.1 12.4 — 11.5 Earnings from equity in subsidiaries 63.8 68.1 33.8 — (165.7 ) — Net income (loss) before royalties 63.8 (33.1 ) 15.8 183.2 (165.7 ) 64.0 Royalties — 87.6 0.7 (88.3 ) — — Net income after royalties 63.8 54.5 16.5 94.9 (165.7 ) 64.0 Net income attributable to noncontrolling interests — — — (0.2 ) — (0.2 ) Net income attributable to AAM $ 63.8 $ 54.5 $ 16.5 $ 94.7 $ (165.7 ) $ 63.8 Other comprehensive income (loss), net of tax 1.5 1.0 (10.3 ) — 9.3 1.5 Comprehensive income attributable to AAM $ 65.3 $ 55.5 $ 6.2 $ 94.7 $ (156.4 ) $ 65.3 Condensed Consolidating Statements of Operations Nine Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2019 Net sales External $ — $ 711.8 $ 1,561.8 $ 2,827.3 $ — $ 5,100.9 Intercompany — 1.5 219.8 37.2 (258.5 ) — Total net sales — 713.3 1,781.6 2,864.5 (258.5 ) 5,100.9 Cost of goods sold — 721.1 1,612.2 2,306.9 (258.5 ) 4,381.7 Gross profit (loss) — (7.8 ) 169.4 557.6 — 719.2 Selling, general and administrative expenses — 208.9 22.4 43.4 — 274.7 Amortization of intangible assets — 4.3 66.6 2.7 — 73.6 Impairment charges — — 225.0 — — 225.0 Restructuring and acquisition-related costs — 17.1 12.3 6.6 — 36.0 Operating income (loss) — (238.1 ) (156.9 ) 504.9 — 109.9 Non-operating income (expense), net — (184.0 ) 7.0 — — (177.0 ) Income (loss) before income taxes — (422.1 ) (149.9 ) 504.9 — (67.1 ) Income tax expense (benefit) — (23.2 ) (46.7 ) 32.5 — (37.4 ) Earnings (loss) from equity in subsidiaries (30.1 ) 131.9 105.3 — (207.1 ) — Net income (loss) before royalties (30.1 ) (267.0 ) 2.1 472.4 (207.1 ) (29.7 ) Royalties — 241.2 2.2 (243.4 ) — — Net income (loss) after royalties (30.1 ) (25.8 ) 4.3 229.0 (207.1 ) (29.7 ) Net income attributable to noncontrolling interests — — — (0.4 ) — (0.4 ) Net income (loss) attributable to AAM $ (30.1 ) $ (25.8 ) $ 4.3 $ 228.6 $ (207.1 ) $ (30.1 ) Other comprehensive income (loss), net of tax (58.9 ) (40.2 ) (32.1 ) (29.5 ) 101.8 (58.9 ) Comprehensive income (loss) attributable to AAM $ (89.0 ) $ (66.0 ) $ (27.8 ) $ 199.1 $ (105.3 ) $ (89.0 ) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2018 Net sales External $ — $ 851.4 $ 1,699.2 $ 3,025.7 $ — $ 5,576.3 Intercompany — 4.0 231.6 31.1 (266.7 ) — Total net sales — 855.4 1,930.8 3,056.8 (266.7 ) 5,576.3 Cost of goods sold — 804.5 1,713.3 2,410.1 (266.7 ) 4,661.2 Gross profit — 50.9 217.5 646.7 — 915.1 Selling, general and administrative expenses — 183.4 61.4 43.8 — 288.6 Amortization of intangible assets — 3.9 68.0 2.6 — 74.5 Restructuring and acquisition-related costs — 31.1 31.8 3.9 — 66.8 Gain on sale of business — — (15.5 ) — — (15.5 ) Operating income (loss) — (167.5 ) 71.8 596.4 — 500.7 Non-operating income (expense), net — (193.8 ) 11.0 18.3 — (164.5 ) Income (loss) before income taxes — (361.3 ) 82.8 614.7 — 336.2 Income tax expense — 8.1 0.6 22.7 — 31.4 Earnings from equity in subsidiaries 304.3 241.6 141.6 — (687.5 ) — Net income (loss) before royalties 304.3 (127.8 ) 223.8 592.0 (687.5 ) 304.8 Royalties — 256.8 2.6 (259.4 ) — — Net income after royalties 304.3 129.0 226.4 332.6 (687.5 ) 304.8 Net income attributable to noncontrolling interests — — — (0.5 ) — (0.5 ) Net income attributable to AAM $ 304.3 $ 129.0 $ 226.4 $ 332.1 $ (687.5 ) $ 304.3 Other comprehensive loss, net of tax (20.9 ) (2.6 ) (50.5 ) (37.3 ) 90.4 (20.9 ) Comprehensive income attributable to AAM $ 283.4 $ 126.4 $ 175.9 $ 294.8 $ (597.1 ) $ 283.4 |
Supplemental Guarantor Consolidating Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheets (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated September 30, 2019 Assets Current assets Cash and cash equivalents $ — $ 79.4 $ 0.1 $ 295.6 $ — $ 375.1 Accounts receivable, net — 95.2 230.8 650.9 — 976.9 Intercompany receivables — 4,864.1 4,722.1 183.0 (9,769.2 ) — Inventories, net — 62.8 116.9 223.4 — 403.1 Prepaid expenses and other — 34.3 3.7 92.9 — 130.9 Current assets held-for-sale — — 312.2 — — 312.2 Total current assets — 5,135.8 5,385.8 1,445.8 (9,769.2 ) 2,198.2 Property, plant and equipment, net — 294.1 554.5 1,477.8 — 2,326.4 Goodwill — — 719.0 408.5 — 1,127.5 Intangible assets, net — 15.4 836.9 29.2 — 881.5 Intercompany notes and accounts receivable — 1,542.1 186.7 — (1,728.8 ) — Other assets and deferred charges — 339.7 118.1 324.9 — 782.7 Investment in subsidiaries 2,721.4 2,155.9 1,504.1 — (6,381.4 ) — Total assets $ 2,721.4 $ 9,483.0 $ 9,305.1 $ 3,686.2 $ (17,879.4 ) $ 7,316.3 Liabilities and Stockholders’ Equity Current liabilities Current portion of long-term debt $ — $ 2.1 $ 5.3 $ 16.4 $ — $ 23.8 Accounts payable — 101.3 169.1 433.3 — 703.7 Intercompany payables — 3,931.7 5,835.5 2.0 (9,769.2 ) — Accrued expenses and other — 165.2 34.9 207.8 — 407.9 Current liabilities held-for-sale — — 101.7 — — 101.7 Total current liabilities — 4,200.3 6,146.5 659.5 (9,769.2 ) 1,237.1 Intercompany notes and accounts payable 1,311.8 36.0 — 381.0 (1,728.8 ) — Long-term debt, net — 3,581.8 — 91.5 — 3,673.3 Other long-term liabilities — 503.0 243.1 250.2 — 996.3 Total liabilities 1,311.8 8,321.1 6,389.6 1,382.2 (11,498.0 ) 5,906.7 Total AAM Stockholders’ equity 1,406.8 1,161.9 2,915.5 2,301.2 (6,378.6 ) 1,406.8 Noncontrolling interests in subsidiaries 2.8 — — 2.8 (2.8 ) 2.8 Total stockholders’ equity 1,409.6 1,161.9 2,915.5 2,304.0 (6,381.4 ) 1,409.6 Total liabilities and stockholders’ equity $ 2,721.4 $ 9,483.0 $ 9,305.1 $ 3,686.2 $ (17,879.4 ) $ 7,316.3 Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated December 31, 2018 Assets Current assets Cash and cash equivalents $ — $ 36.7 $ 0.2 $ 439.5 $ — $ 476.4 Accounts receivable, net — 122.7 287.7 556.1 — 966.5 Intercompany receivables — 3,337.2 2,356.3 93.5 (5,787.0 ) — Inventories, net — 42.5 157.7 259.5 — 459.7 Prepaid expenses and other — 34.4 6.0 86.8 — 127.2 Total current assets — 3,573.5 2,807.9 1,435.4 (5,787.0 ) 2,029.8 Property, plant and equipment, net — 275.8 758.6 1,480.0 — 2,514.4 Goodwill — — 719.0 422.8 — 1,141.8 Intangible assets, net — 18.6 1,059.6 32.9 — 1,111.1 Intercompany notes and accounts receivable — 1,316.8 144.5 — (1,461.3 ) — Other assets and deferred charges — 319.8 126.4 267.4 — 713.6 Investment in subsidiaries 2,790.5 2,241.5 1,748.7 — (6,780.7 ) — Total assets $ 2,790.5 $ 7,746.0 $ 7,364.7 $ 3,638.5 $ (14,029.0 ) $ 7,510.7 Liabilities and Stockholders’ Equity Current liabilities Current portion of long-term debt $ — $ 100.0 $ — $ 21.6 $ — $ 121.6 Accounts payable — 94.2 246.5 499.5 — 840.2 Intercompany payables — 2,050.0 3,615.7 121.3 (5,787.0 ) — Accrued expenses and other — 169.0 35.8 190.2 — 395.0 Total current liabilities — 2,413.2 3,898.0 832.6 (5,787.0 ) 1,356.8 Intercompany notes and accounts payable 1,304.2 12.5 — 144.6 (1,461.3 ) — Long-term debt, net — 3,578.3 3.0 105.5 — 3,686.8 Other long-term liabilities — 508.9 271.7 200.2 — 980.8 Total liabilities 1,304.2 6,512.9 4,172.7 1,282.9 (7,248.3 ) 6,024.4 Total AAM Stockholders’ equity 1,483.9 1,233.1 3,192.0 2,353.2 (6,778.3 ) 1,483.9 Noncontrolling interests in subsidiaries 2.4 — — 2.4 (2.4 ) 2.4 Total stockholders’ equity 1,486.3 1,233.1 3,192.0 2,355.6 (6,780.7 ) 1,486.3 Total liabilities and stockholders’ equity $ 2,790.5 $ 7,746.0 $ 7,364.7 $ 3,638.5 $ (14,029.0 ) $ 7,510.7 |
Supplemental Guarantor Consolidating Statement of Cash Flows [Table Text Block] | Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, (in millions) Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2019 Net cash provided by operating activities $ — $ 214.1 $ 20.4 $ 144.1 $ — $ 378.6 Investing activities Purchases of property, plant and equipment — (46.8 ) (91.0 ) (197.5 ) — (335.3 ) Proceeds from sale of property, plant and equipment — — 1.7 0.3 — 2.0 Investment in joint ventures — — — (2.2 ) — (2.2 ) Intercompany activity — — (12.0 ) 12.0 — — Net cash used in investing activities — (46.8 ) (101.3 ) (187.4 ) — (335.5 ) Financing activities Net debt activity — (113.8 ) (0.2 ) (15.3 ) — (129.3 ) Debt issuance costs — (3.3 ) — — — (3.3 ) Purchase of treasury stock (7.5 ) — — — — (7.5 ) Intercompany activity 7.5 (7.5 ) 81.0 (81.0 ) — — Net cash used in financing activities — (124.6 ) 80.8 (96.3 ) — (140.1 ) Effect of exchange rate changes on cash — — — (4.3 ) — (4.3 ) Net increase (decrease) in cash, cash equivalents and restricted cash — 42.7 (0.1 ) (143.9 ) — (101.3 ) Cash, cash equivalents and restricted cash at beginning of period — 36.7 2.7 439.5 — 478.9 Cash, cash equivalents and restricted cash at end of period $ — $ 79.4 $ 2.6 $ 295.6 $ — $ 377.6 Holdings AAM Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Elims Consolidated 2018 Net cash provided by operating activities $ — $ 240.0 $ 103.0 $ 170.2 $ — $ 513.2 Investing activities Purchases of property, plant and equipment — (51.8 ) (121.2 ) (218.8 ) — (391.8 ) Proceeds from sale of property, plant and equipment — — 2.7 0.5 — 3.2 Purchase buyouts of leased equipment — — (0.5 ) — — (0.5 ) Proceeds from sale of business, net — — 42.7 4.4 — 47.1 Acquisition of business, net of cash acquired — — — (1.3 ) — (1.3 ) Intercompany activity — — (43.8 ) 43.8 — — Net cash used in investing activities — (51.8 ) (120.1 ) (171.4 ) — (343.3 ) Financing activities Net debt activity — (140.3 ) (0.6 ) 54.2 — (86.7 ) Debt issuance costs — (6.9 ) — — — (6.9 ) Purchase of treasury stock (3.7 ) — — — — (3.7 ) Purchase of noncontrolling interest — — (2.2 ) — — (2.2 ) Intercompany activity 3.7 (3.7 ) 22.5 (22.5 ) — — Net cash provided by (used in) financing activities — (150.9 ) 19.7 31.7 — (99.5 ) Effect of exchange rate changes on cash — — — (5.3 ) — (5.3 ) Net increase in cash, cash equivalents and restricted cash — 37.3 2.6 25.2 — 65.1 Cash, cash equivalents and restricted cash at beginning of period — 91.9 0.1 284.8 — 376.8 Cash, cash equivalents and restricted cash at end of period $ — $ 129.2 $ 2.7 $ 310.0 $ — $ 441.9 |
Organization and Basis of Pre_3
Organization and Basis of Presentation Company Information (Details) | Sep. 30, 2019EmployeesCountriesFacilities |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Entity Number of Employees | Employees | 25,000 |
Number of Facilities | Facilities | 90 |
Number of Countries in which Entity Operates | Countries | 17 |
Organization and Basis of Pre_4
Organization and Basis of Presentation New Accounting Pronouncements (Details) $ in Millions | Jan. 01, 2019USD ($) |
Accounting Standard Update 2018-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 27.7 |
Proceeds From Divestiture of Bu
Proceeds From Divestiture of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment charge | $ 225 | $ 0 | $ 225 | $ 0 | |
Forecast [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from Divestiture of Businesses | $ 245 | ||||
Cash and Cash Equivalents [Member] | Forecast [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from Divestiture of Businesses | 185 | ||||
Twelve year deferred payment obligation at 6% [Member] | Forecast [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from Divestiture of Businesses | $ 60 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 89.1 | |
Inventories | 32.8 | |
Prepaid expenses and other | 1.5 | |
Property, plant and equipment, net | 184.6 | |
Intangible assets, net | 158.2 | |
Other assets and deferred charges | 71 | |
Impairment of carrying value | (225) | |
Total assets held-for-sale | 312.2 | $ 0 |
Accounts payable | 71.3 | |
Accrued compensation and benefits | 6.8 | |
Accrued expenses and other | 3.4 | |
Postretirement benefits and other long-term liabilities | 20.2 | |
Total liabilities held-for-sale | $ 101.7 | $ 0 |
Components of lease cost (Detai
Components of lease cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Components of lease expense [Line Items] | ||||
Finance lease cost, Amortization of right-of-use assets | $ 0.2 | $ 0.6 | ||
Finance lease cost, Interest on lease liabilities | 0.1 | 0.2 | ||
Total finance lease cost | 0.3 | 0.8 | ||
Operating lease cost | 6.5 | 19.9 | ||
Short-term lease cost | 1.4 | 4.8 | ||
Variable lease cost | 2.5 | 6.7 | ||
Total lease cost | 10.7 | 32.2 | ||
Cost of Sales [Member] | ||||
Components of lease expense [Line Items] | ||||
Lease expense | 8 | $ 7.1 | 24 | $ 21.4 |
Selling, General and Administrative Expenses [Member] | ||||
Components of lease expense [Line Items] | ||||
Lease expense | $ 2.4 | $ 2.4 | $ 7.4 | $ 7.4 |
Supplemental lease information
Supplemental lease information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Supplemental lease information [Line Items] | |
Operating cash flows from finance leases | $ 0.2 |
Operating cash flows from operating leases | 18.2 |
Financing cash flows from finance leases | $ 0.6 |
Weighted-average remaining lease term - finance leases | 3 years 1 month 6 days |
Weighted-average remaining lease term - operating leases | 7 years 6 months |
Weighted-average discount rate - finance leases | 8.10% |
Weighted-average discount rate - operating leases | 5.60% |
Future minimum lease payments (
Future minimum lease payments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Future minimum lease payments [Line Items] | ||
Finance Lease, Liability | $ 2.8 | |
Operating Lease, Liability | 93.7 | |
Forecast [Member] | ||
Future minimum lease payments [Line Items] | ||
Short-term Lease Payments | $ 5 | |
Finance Lease [Member] | ||
Future minimum lease payments [Line Items] | ||
2019 (excluding the nine months ended September 30, 2019) | 0.3 | |
2020 | 1.1 | |
2021 | 1 | |
2022 | 0.9 | |
2023 | 0.9 | |
Thereafter | 0 | |
Total future undiscounted minimum lease payments | 4.2 | |
Less: impact of discounting | (1.4) | |
Finance Lease, Liability | 2.8 | |
Operating lease [Member] | ||
Future minimum lease payments [Line Items] | ||
2019 (excluding the nine months ended September 30, 2019) | 6.9 | |
2020 | 25.6 | |
2021 | 18.1 | |
2022 | 14.5 | |
2023 | 9.7 | |
Thereafter | 38.9 | |
Total future undiscounted minimum lease payments | 113.7 | |
Less: impact of discounting | (20) | |
Operating Lease, Liability | $ 93.7 |
Right of use assets and lease l
Right of use assets and lease liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Right of use assets and lease liabilities [Line Items] | |
Finance Lease, Right-of-Use Asset | $ 2.8 |
Operating Lease, Right-of-Use Asset | 93.7 |
Finance Lease, Liability | 2.8 |
Operating Lease, Liability | 93.7 |
Property, Plant and Equipment, Net [Member] | |
Right of use assets and lease liabilities [Line Items] | |
Finance Lease, Right-of-Use Asset | 2.8 |
Operating Lease, Right-of-Use Asset | 0 |
Other Assets and Deferred Charges [Member] | |
Right of use assets and lease liabilities [Line Items] | |
Finance Lease, Right-of-Use Asset | 0 |
Operating Lease, Right-of-Use Asset | 93.7 |
Accrued expenses and other [Member] | |
Right of use assets and lease liabilities [Line Items] | |
Finance Lease, Liability | 0.9 |
Operating Lease, Liability | 21.4 |
Postretirement benefits and other long-term liabilities [Member] | |
Right of use assets and lease liabilities [Line Items] | |
Finance Lease, Liability | 1.9 |
Operating Lease, Liability | $ 72.3 |
Leases not yet commenced (Detai
Leases not yet commenced (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases not yet commenced [Line Items] | |
Lessee, Operating Lease, Lease Not yet Commenced | $ 1.4 |
Restructuring Reserve Narrative
Restructuring Reserve Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 36 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 23.5 | $ 37.7 | |||
Restructuring and acquisition-related costs | $ 11.7 | $ 11.7 | 36 | 66.8 | |
2016 Restructuring Plan - Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 2.8 | ||||
2016 Restructuring Plan - Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 29.6 | ||||
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 10.4 | 2.3 | |||
Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 13.1 | 8.8 | |||
Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 0 | $ 26.6 |
Restructuring and Acquisition_3
Restructuring and Acquisition-Related Costs (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | $ 4 | $ 0.3 | |
Charges | 23.5 | 37.7 | |
Cash utilization | (21.6) | (7) | |
Non-cash utilization | (26.6) | ||
Restructuring reserve | 5.9 | 4.4 | |
Minimum [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring and Related Cost, Expected Cost | $ 30 | ||
Maximum [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring and Related Cost, Expected Cost | $ 35 | ||
Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | 2.4 | 0.3 | |
Charges | 10.4 | 2.3 | |
Cash utilization | (11.7) | (0.4) | |
Non-cash utilization | 0 | ||
Restructuring reserve | 1.1 | 2.2 | |
Other Restructuring [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | 1.6 | 0 | |
Charges | 13.1 | 8.8 | |
Cash utilization | (9.9) | (6.6) | |
Non-cash utilization | 0 | ||
Restructuring reserve | 4.8 | 2.2 | |
Facility Closing [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | 0 | 0 | |
Charges | 0 | 26.6 | |
Cash utilization | 0 | 0 | |
Non-cash utilization | (26.6) | ||
Restructuring reserve | $ 0 | $ 0 |
Business Combinations, Separate
Business Combinations, Separately Recognized Transactions Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring Charges | $ 23.5 | $ 37.7 | ||
Integration expenses | 12.5 | 29.1 | ||
Restructuring and acquisition-related costs | $ 11.7 | $ 11.7 | $ 36 | $ 66.8 |
Goodwill Rollforward (Details)
Goodwill Rollforward (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 1,141.8 |
Reorganization | 0 |
Foreign currency translation | (14.3) |
Goodwill | 1,127.5 |
Driveline [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 212.1 |
Reorganization | 187.2 |
Foreign currency translation | (5.4) |
Goodwill | 393.9 |
Metal Forming [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 552.4 |
Reorganization | 190.1 |
Foreign currency translation | (8.9) |
Goodwill | 733.6 |
Powertrain [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 377.3 |
Reorganization | (377.3) |
Foreign currency translation | 0 |
Goodwill | 0 |
Casting [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 0 |
Reorganization | 0 |
Foreign currency translation | 0 |
Goodwill | $ 0 |
Intangible Assets Table (Detail
Intangible Assets Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | $ 1,106.3 | $ 1,106.3 | $ 1,293.4 | |||
Accumulated Amortization | (224.8) | (224.8) | (182.3) | |||
Net Carrying Amount | 881.5 | 881.5 | 1,111.1 | |||
Amortization of Intangible Assets | 23.7 | $ 24.8 | 73.6 | $ 74.5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Current Fiscal Year | $ 95 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 87 | 87 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 87 | 87 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 87 | 87 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 87 | 87 | ||||
Computer Software, Intangible Asset [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 41.4 | 41.4 | 38 | |||
Accumulated Amortization | (26) | (26) | (20.1) | |||
Net Carrying Amount | 15.4 | 15.4 | 17.9 | |||
Customer Platforms - Intangible Assets [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 856.2 | 856.2 | 952.2 | |||
Accumulated Amortization | (158.6) | (158.6) | (123.5) | |||
Net Carrying Amount | 697.6 | 697.6 | 828.7 | |||
Customer Relationships - Intangible Assets [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 53 | 53 | 147 | |||
Accumulated Amortization | (8.5) | (8.5) | (16.5) | |||
Net Carrying Amount | 44.5 | 44.5 | 130.5 | |||
Technology-Based Intangible Assets [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 155.7 | 155.7 | 156.2 | |||
Accumulated Amortization | (31.7) | (31.7) | (22.2) | |||
Net Carrying Amount | $ 124 | $ 124 | $ 134 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Raw materials and work-in-progress | $ 337.3 | $ 375.1 |
Finished goods | 88 | 99 |
Gross inventories | 425.3 | 474.1 |
Inventory valuation reserves | (22.2) | (14.4) |
Inventories, net | $ 403.1 | $ 459.7 |
Schedule of Long-Term Debt (Det
Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 29, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Foreign credit facilities and other debt | $ 113.2 | $ 127.1 | |
Debt, Long-term and Short-term, Combined Amount | 3,751.8 | 3,875.5 | |
Current portion of long-term debt | 23.8 | 121.6 | |
Long-term debt | 3,728 | 3,753.9 | |
Long-term debt, net | 3,673.3 | 3,686.8 | |
Total Debt Instruments excluding Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | 54.7 | 67.1 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | 0 | 0 | |
Secured Debt [Member] | Term Loan A Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 340 | $ 340 | |
Secured Debt [Member] | Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 83.8 | ||
Secured Debt [Member] | Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 1,248.6 | 1,511.2 | |
Unsecured Debt [Member] | 7.75% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 0 | 100 | |
Unsecured Debt [Member] | 6.625% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 450 | 450 | |
Unsecured Debt [Member] | 6.50% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 500 | 500 | |
Unsecured Debt [Member] | 6.25% Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 400 | 400 | |
Unsecured Debt [Member] | 6.25% Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 700 | 700 | |
Foreign Credit Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | 107.8 | 127.1 | |
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 0 | $ 3.4 |
Senior Secured Credit Facilitie
Senior Secured Credit Facilities Narrative (Details) - USD ($) $ in Millions | Apr. 06, 2017 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 29, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Long-term Debt | $ 348.4 | $ 481.3 | ||||
AAM Inc. [Member] | Term Loan A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Long-term Debt | $ 100 | |||||
AAM Inc. [Member] | Term Loan B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Long-term Debt | 1,550 | |||||
AAM Inc. [Member] | Multi-Currency Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | $ 932 | |||||
Secured Debt [Member] | Term Loan A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 83.8 | |||||
Secured Debt [Member] | Term Loan B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 1,248.6 | 1,248.6 | 1,511.2 | |||
Secured Debt [Member] | Term Loan A Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 340 | 340 | $ 340 | |||
Secured Debt [Member] | Term Loan A & Term Loan B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Write off of Deferred Debt Issuance Cost | 5.1 | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | 0 | 0 | $ 0 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 890.8 | 890.8 | ||||
Line of Credit Facility, Standby Letters of Credit Issued Against the Facility | $ 34.2 | $ 34.2 |
Other Debt Disclosures Narrativ
Other Debt Disclosures Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.80% | 5.90% |
Foreign Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 107.8 | $ 127.1 |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 93.7 | |
7.75% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |
7.75% Notes [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Repurchase Amount | $ 100 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 0.3 | |
Write off of Deferred Debt Issuance Cost | 0.1 | |
Redemption Premium | $ 2.2 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Carrying Value | $ 160.7 | $ 44 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Fair Value | 160.7 | 44 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 2.3 | 1.3 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 2.3 | 1.3 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.9 | 0.4 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.9 | 0.4 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Accrued expenses and other [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Liabilities, Fair Value Disclosure | 0.3 | 0.8 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Accrued expenses and other [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Liabilities, Fair Value Disclosure | 0.3 | 0.8 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Postretirement benefits and other long-term liabilities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Liabilities, Fair Value Disclosure | 0.1 | 0.9 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Postretirement benefits and other long-term liabilities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Liabilities, Fair Value Disclosure | 0.1 | 0.9 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.2 | 0.6 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.2 | 0.6 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Accrued expenses and other [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Liabilities, Fair Value Disclosure | 0.4 | 0.4 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Accrued expenses and other [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Liabilities, Fair Value Disclosure | 0.4 | 0.4 |
Currency Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 7 | 0 |
Currency Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 7 | 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Derivative Assets, at Fair Value | 1.6 | 0.9 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Derivative Assets, at Fair Value | 1.6 | 0.9 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Derivative Assets, at Fair Value | 4 | 1.6 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Derivative Assets, at Fair Value | 4 | 1.6 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accrued expenses and other [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Derivative Liabilities, at Fair Value | 10 | 0.7 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accrued expenses and other [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Derivative Liabilities, at Fair Value | 10 | 0.7 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Postretirement benefits and other long-term liabilities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Derivative Liabilities, at Fair Value | 24.2 | 6.9 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Postretirement benefits and other long-term liabilities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Derivative Liabilities, at Fair Value | $ 24.2 | $ 6.9 |
Fair Value of Debt (Details)
Fair Value of Debt (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Revolving Credit Facility [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 0 | $ 0 |
Revolving Credit Facility [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 0 | 0 |
Term Loan A Due 2024 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 340 | |
Term Loan A Due 2024 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 334.9 | |
Term Loan A [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 83.8 | |
Term Loan A [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 79.5 | |
Term Loan B [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 1,248.6 | 1,511.2 |
Term Loan B [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 1,217.4 | 1,420.6 |
7.75% Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 0 | 100 |
7.75% Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 0 | 102.1 |
6.625% Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 450 | 450 |
6.625% Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 454.5 | 444.4 |
6.50% Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 500 | 500 |
6.50% Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 474.4 | 446.3 |
6.25% Notes Due 2026 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 400 | 400 |
6.25% Notes Due 2026 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 380 | 358 |
6.25% Notes due 2025 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | 700 | 700 |
6.25% Notes due 2025 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 665 | $ 636.7 |
Fair Value of Impaired Assets (
Fair Value of Impaired Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of Long-Lived Assets to be Disposed of | $ 225 | $ 0 | $ 225 | $ 0 |
Property, Plant and Equipment, Net [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Long Lived Assets, Fair Value | 0 | 0 | ||
Impairment of Long-Lived Assets to be Disposed of | 25.7 | |||
Other Assets and Deferred Charges [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Long Lived Assets, Fair Value | $ 0 | 0 | ||
Impairment of Long-Lived Assets to be Disposed of | $ 0.9 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Product Warranty Rollforward | ||||
Beginning balance | $ 55.7 | $ 58.4 | $ 57.7 | $ 49.5 |
Accruals | 5.3 | 4.4 | 14.7 | 14.9 |
Payments | (0.9) | (2.2) | (8.2) | (3.3) |
Adjustment to prior period accruals | 0.7 | 5.1 | (3.6) | 4.9 |
Foreign currency translation | (0.5) | (0.2) | (0.3) | (0.5) |
Ending balance | $ 60.3 | $ 65.5 | $ 60.3 | $ 65.5 |
Derivatives Narrative (Details)
Derivatives Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | May 28, 2019 |
Foreign Currency Forward & Foreign Currency Option Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 191.5 | |
Currency Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 217.9 | |
Interest Rate Swap [Member] | Debt [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value Liability At Date Of Dedesignation | $ 9.7 | |
Derivative, Amount of Hedged Item, Through May 2020 | 1,000 | |
Derivative, Amount of Hedged Item, Through May 2021 | 900 | |
Derivative, Amount of Hedged Item, Through May 2022 | 750 | |
Derivative, Amount of Hedged Item, Through May 2023 | 600 | |
Derivative, Amount of Hedged Item, Through May 2024 | $ 500 |
Schedule of Derivatives (Detail
Schedule of Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cost of goods sold | $ 1,428.7 | $ 1,549.6 | $ 4,381.7 | $ 4,661.2 | |
Other income (expense), net | (2.9) | (4.8) | (9) | (4.6) | |
Interest expense | (54.3) | (54.9) | $ (163.9) | (162.5) | |
Foreign Exchange Forward [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Description of Location of Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments in Financial Statements | Cost of Goods Sold | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (0.5) | 2.3 | $ 1.3 | 2.8 | |
Foreign Exchange Forward [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Income Statement Location Gain (Loss) Reclassified from Accumulated OCI | Cost of Goods Sold | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0.9 | (0.9) | $ 1.8 | (3.7) | |
Foreign Exchange Forward [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | Forecast [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 2 | ||||
Foreign Exchange Forward [Member] | Nonoperating Income (Expense) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Description of Location of Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments in Financial Statements | Other Income (Expense), net | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0.1 | (0.5) | $ (0.5) | 1.3 | |
Currency Swap [Member] | Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Income Statement Location Gain (Loss) Reclassified from Accumulated OCI | Other Income (Expense), net | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 7.6 | 0 | $ 7.6 | 0 | |
Currency Swap [Member] | Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | Forecast [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cash flow hedge gain (loss) to be reclassified within twelve months | 0 | ||||
Interest Rate Swap [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Income Statement Location Gain (Loss) Reclassified from Accumulated OCI | Interest Expense | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (1.7) | $ 0.8 | $ 0.2 | $ 2.1 | |
Interest Rate Swap [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | Forecast [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ (9.1) |
Schedule of Employee Benefit Pl
Schedule of Employee Benefit Plans Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0.4 | $ 1.1 | $ 1.1 | $ 3.2 |
Interest cost | 7.1 | 6.9 | 21.3 | 20.6 |
Expected asset return | (10.3) | (11.4) | (30.9) | (34.4) |
Amortized loss | 1.5 | 2.2 | 4.7 | 6.6 |
Amortized prior service cost (credit) | 0 | 0 | 0 | 0.1 |
Curtailment | 0 | 0 | 0 | 3.2 |
Settlement | 0.4 | 0 | 0.4 | 0 |
Net periodic benefit credit | (0.9) | (1.2) | (3.4) | (0.7) |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0.1 | 0.2 | 0.3 |
Interest cost | 3.3 | 3.1 | 9.7 | 9.3 |
Amortized loss | 0 | 0.2 | 0.1 | 0.6 |
Amortized prior service cost (credit) | (0.4) | (0.7) | (1.2) | (2) |
Net periodic benefit cost | $ 2.9 | $ 2.7 | $ 8.8 | $ 8.2 |
Employee Benefit Plans and Othe
Employee Benefit Plans and Other Postretirement Benefit Plans Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Liability, Defined Benefit Pension Plan, Noncurrent | $ 113 | $ 128.6 |
Liability, Other Postretirement Defined Benefit Plan, Noncurrent | 506.4 | $ 506.5 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 2.2 | |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 17.7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income tax expense (benefit) | $ (40.4) | $ 11.5 | $ (37.4) | $ 31.4 | |
Effective income tax rate, continuing operations | 24.60% | 15.20% | 55.70% | 9.30% | |
Income tax benefit of held-for-sale impairment charge | $ 47.2 | ||||
Other Tax Expense (Benefit) | $ (9.3) | ||||
Unrecognized tax benefit liability, including penalties and accrued interest | $ 51.9 | $ 51.9 | $ 45.6 | ||
Foreign Tax Authority [Member] | |||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 20 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator | ||||
Net income (loss) attributable to AAM | $ (124.2) | $ 63.8 | $ (30.1) | $ 304.3 |
Less: Net income attributable to participating securities | 0 | (2) | 0 | (8.9) |
Net income (loss) attributable to common shareholders - Basic and Dilutive | $ (124.2) | $ 61.8 | $ (30.1) | $ 295.4 |
Denominators | ||||
Basic - Weighted-average shares outstanding | 115.8 | 115.3 | 115.6 | 115 |
Basic - Less: Participating securities | (3.3) | (3.6) | (3.3) | (3.4) |
Basic - Weighted-average common shares outstanding | 112.5 | 111.7 | 112.3 | 111.6 |
Effect of dilutive securities - dilutive stock-based compensation | 0 | 1 | 0 | 0.7 |
Diluted - Adjusted weighted-average shares after assumed conversions | 112.5 | 112.7 | 112.3 | 112.3 |
Basic EPS | $ (1.10) | $ 0.55 | $ (0.27) | $ 2.65 |
Diluted EPS | $ (1.10) | $ 0.55 | $ (0.27) | $ 2.63 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (EPS) Antidilutive Shares (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.4 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss), derivatives qualifying as hedges, tax | $ 1.1 | $ (0.5) | $ 7.3 | $ (1.7) |
Defined benefit plans, net current period other comprehensive income (loss) | (1.3) | 1 | 0.5 | 14.5 |
Foreign currency translation adjustments, net current period other comprehensive income (loss) | (37.1) | (11.9) | (34.7) | (55) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (6.4) | 12.4 | (24.7) | 19.6 |
Other comprehensive income (loss) | (44.8) | 1.5 | (58.9) | (20.9) |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), net of tax - Beginning balance | (239.8) | (238.5) | (213.9) | (252) |
Defined benefit plans, other comprehensive income (loss), before reclassifications | (2.9) | 0 | (30.8) | 14.7 |
Income tax effect of other comprehensive income (loss) before reclassifications | 0.6 | 0 | 0.6 | (3.6) |
Defined benefit plans, amounts reclassified from accumulated other comprehensive income (loss) | 1.3 | 1.3 | 3.8 | 4.6 |
Income taxes reclassified into net income | (0.3) | (0.3) | (0.8) | (1.2) |
Defined benefit plans, net current period other comprehensive income (loss) | (1.3) | 1 | (27.2) | 14.5 |
Accumulated other comprehensive income (loss), net of tax - Ending balance | (241.1) | (237.5) | (241.1) | (237.5) |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), net of tax - Beginning balance | (94.2) | (77.2) | (96.6) | (34.1) |
Foreign currency translation adjustments, other comprehensive income (loss) arising during period | (37.1) | (11.9) | (34.7) | (55.2) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments, amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0.2 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments, net current period other comprehensive income (loss) | (37.1) | (11.9) | (34.7) | (55) |
Accumulated other comprehensive income (loss), net of tax - Ending balance | (131.3) | (89.1) | (131.3) | (89.1) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), net of tax - Beginning balance | (19.4) | 0.6 | (1.1) | (6.6) |
Unrecognized gain (loss) on cash flow hedges, other comprehensive income (loss) arising during period | (0.7) | 12.8 | (22.4) | 19.7 |
Other comprehensive income (loss), derivatives qualifying as hedges, tax | (0.1) | (0.7) | 5.7 | (2.2) |
Unrecognized gain (loss) on cash flow hedges, amounts reclassified from accumulated other comprehensive income (loss) | (6.8) | 0.1 | (9.6) | 1.6 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 1.2 | 0.2 | 1.6 | 0.5 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (6.4) | 12.4 | (24.7) | 19.6 |
Accumulated other comprehensive income (loss), net of tax - Ending balance | (25.8) | 13 | (25.8) | 13 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), net of tax - Beginning balance | (353.4) | (315.1) | (311.6) | (292.7) |
Other comprehensive income (loss) arising during period, total | (40.7) | 0.9 | (87.9) | (20.8) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0.5 | (0.7) | 6.3 | (5.8) |
Other comprehensive income (loss), reclassification before tax | (5.5) | 1.4 | (5.8) | 6.4 |
Reclassification from AOCI, Current Period, Tax | 0.9 | (0.1) | 0.8 | (0.7) |
Other comprehensive income (loss) | (44.8) | 1.5 | (86.6) | (20.9) |
Accumulated other comprehensive income (loss), net of tax - Ending balance | $ (398.2) | $ (313.6) | $ (398.2) | $ (313.6) |
Reclassifications out of Accu_4
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Cost of Sales [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Defined benefit plans, amounts reclassified from accumulated other comprehensive income (loss) | $ 1.2 | $ 1.5 | $ 3.6 | $ 4.5 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (0.9) | 0.9 | (1.8) | 3.7 | |
Selling, General and Administrative Expenses [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Defined benefit plans, amounts reclassified from accumulated other comprehensive income (loss) | 0.1 | (0.1) | 0.2 | 0.1 | |
Interest Expense [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 1.7 | (0.8) | (0.2) | (2.1) | |
Other Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ (7.6) | $ 0 | $ (7.6) | $ 0 | |
Accounting Standard Update 2018-02 [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 27.7 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,677.4 | $ 1,817 | $ 5,100.9 | $ 5,576.3 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,369.3 | 1,456.6 | 4,101.7 | 4,489.3 |
Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 141.3 | 169.6 | 445 | 515.3 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 139 | 154.9 | 471.3 | 469.1 |
South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 27.8 | 35.9 | 82.9 | 102.6 |
Driveline [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,138.1 | 1,226.4 | 3,411.9 | 3,713.3 |
Driveline [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 902.7 | 946 | 2,644.1 | 2,892.5 |
Driveline [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 131 | 160.7 | 419.3 | 481.6 |
Driveline [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 77.9 | 85.1 | 270.3 | 240.3 |
Driveline [Member] | South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26.5 | 34.6 | 78.2 | 98.9 |
Metal Forming [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 369.6 | 396.8 | 1,135.1 | 1,249.8 |
Metal Forming [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 296.9 | 316.8 | 903.7 | 983.6 |
Metal Forming [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 10.3 | 8.9 | 25.7 | 33.7 |
Metal Forming [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 61.1 | 69.8 | 201 | 228.8 |
Metal Forming [Member] | South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1.3 | 1.3 | 4.7 | 3.7 |
Casting [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 169.7 | 193.8 | 553.9 | 613.2 |
Casting [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 169.7 | 193.8 | 553.9 | 613.2 |
Casting [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Casting [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Casting [Member] | South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Accounts receivable, net | $ 976.9 | $ 976.9 | $ 966.5 |
Deferred revenue, current | 22.6 | 22.6 | 44.3 |
Deferred revenue, noncurrent | 83.1 | 83.1 | $ 77.6 |
Increase (decrease) in accounts receivable | 10.4 | ||
Contract liability, current, increase (decrease) | (21.7) | ||
Contract liability, noncurrent, increase (decrease) | 5.5 | ||
Contract with customer, liability, revenue recognized | $ 12.5 | $ 40.3 |
Sales and Segment Adjusted EBIT
Sales and Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,832.3 | $ 1,956.3 | $ 5,521.6 | $ 6,001.6 |
Intersegment sales | 154.9 | 139.3 | 420.7 | 425.3 |
Net sales | 1,677.4 | 1,817 | 5,100.9 | 5,576.3 |
Segment Adjusted EBITDA | 265.8 | 275 | 776.8 | 939.9 |
Driveline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,146.7 | 1,228.2 | 3,422.5 | 3,718.6 |
Intersegment sales | 8.6 | 1.8 | 10.6 | 5.3 |
Net sales | 1,138.1 | 1,226.4 | 3,411.9 | 3,713.3 |
Segment Adjusted EBITDA | 171.6 | 176.9 | 461.7 | 570.9 |
Metal Forming [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 476.6 | 509 | 1,444.1 | 1,581.7 |
Intersegment sales | 107 | 112.2 | 309 | 331.9 |
Net sales | 369.6 | 396.8 | 1,135.1 | 1,249.8 |
Segment Adjusted EBITDA | 80.4 | 83.6 | 253.7 | 306 |
Casting [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 209 | 219.1 | 655 | 701.3 |
Intersegment sales | 39.3 | 25.3 | 101.1 | 88.1 |
Net sales | 169.7 | 193.8 | 553.9 | 613.2 |
Segment Adjusted EBITDA | $ 13.8 | $ 14.5 | $ 61.4 | $ 63 |
Segment Assets (Details)
Segment Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 7,316.3 | $ 7,510.7 |
Driveline [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,649.4 | 3,529.2 |
Metal Forming [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,579.9 | 2,723 |
Casting [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 454.7 | 664.7 |
Corporate and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 632.3 | $ 593.8 |
Reconciliation of Total Segment
Reconciliation of Total Segment Adjusted EBITDA to Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total Segment Adjusted EBITDA | $ 265.8 | $ 275 | $ 776.8 | $ 939.9 |
Interest expense | (54.3) | (54.9) | (163.9) | (162.5) |
Depreciation and amortization | (134.2) | (132.9) | (411.5) | (390.9) |
Restructuring and acquisition-related costs | (11.7) | (11.7) | (36) | (66.8) |
Gain on sale of business | 0 | 0 | 0 | 15.5 |
Gain on settlement of capital lease | 0 | 0 | 0 | 15.6 |
Debt refinancing and redemption costs | (5.1) | 0 | (7.5) | (14.6) |
Impairment charge | (225) | 0 | (225) | 0 |
Income (loss) before income taxes | $ (164.5) | $ 75.5 | $ (67.1) | $ 336.2 |
Supplemental Guarantor Conden_3
Supplemental Guarantor Condensed Consolidating Financial Statements Narrative (Details) | Sep. 30, 2019 |
Debt Instrument [Line Items] | |
Ownership in Subsidiary, Percentage | 100.00% |
Unsecured Debt [Member] | 6.625% Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.625% |
Unsecured Debt [Member] | 6.50% Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% |
Unsecured Debt [Member] | 6.25% Notes Due 2026 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.25% |
Unsecured Debt [Member] | 6.25% Notes due 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.25% |
Supplemental Guarantor Conden_4
Supplemental Guarantor Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | ||||
External | $ 1,677.4 | $ 1,817 | $ 5,100.9 | $ 5,576.3 |
Intercompany | 0 | 0 | 0 | 0 |
Net sales | 1,677.4 | 1,817 | 5,100.9 | 5,576.3 |
Cost of goods sold | 1,428.7 | 1,549.6 | 4,381.7 | 4,661.2 |
Gross profit | 248.7 | 267.4 | 719.2 | 915.1 |
Selling, general and administrative expenses | 92.7 | 96.3 | 274.7 | 288.6 |
Amortization of intangible assets | 23.7 | 24.8 | 73.6 | 74.5 |
Impairment charge | 225 | 0 | 225 | 0 |
Restructuring and acquisition-related costs | 11.7 | 11.7 | 36 | 66.8 |
Gain on sale of business | 0 | 0 | 0 | (15.5) |
Operating income (loss) | (104.4) | 134.6 | 109.9 | 500.7 |
Non-operating income (expense), net | (60.1) | (59.1) | (177) | (164.5) |
Income (loss) before income taxes | (164.5) | 75.5 | (67.1) | 336.2 |
Income tax expense (benefit) | (40.4) | 11.5 | (37.4) | 31.4 |
Earnings (loss) from equity in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) before royalties | (124.1) | 64 | (29.7) | 304.8 |
Royalties | 0 | 0 | 0 | 0 |
Net income (loss) after royalties | (124.1) | 64 | (29.7) | 304.8 |
Net income attributable to noncontrolling interests | (0.1) | (0.2) | (0.4) | (0.5) |
Net income (loss) attributable to AAM | (124.2) | 63.8 | (30.1) | 304.3 |
Other comprehensive income (loss), net of tax | (44.8) | 1.5 | (58.9) | (20.9) |
Comprehensive income (loss) attributable to AAM | (169) | 65.3 | (89) | 283.4 |
Consolidation, Eliminations [Member] | ||||
Net sales | ||||
External | 0 | 0 | 0 | 0 |
Intercompany | (94) | (87.1) | (258.5) | (266.7) |
Net sales | (94) | (87.1) | (258.5) | (266.7) |
Cost of goods sold | (94) | (87.1) | (258.5) | (266.7) |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Impairment charge | 0 | 0 | ||
Restructuring and acquisition-related costs | 0 | 0 | 0 | 0 |
Gain on sale of business | 0 | |||
Operating income (loss) | 0 | 0 | 0 | 0 |
Non-operating income (expense), net | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Earnings (loss) from equity in subsidiaries | 35.5 | (165.7) | (207.1) | (687.5) |
Net income (loss) before royalties | 35.5 | (165.7) | (207.1) | (687.5) |
Royalties | 0 | 0 | 0 | 0 |
Net income (loss) after royalties | 35.5 | (165.7) | (207.1) | (687.5) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AAM | 35.5 | (165.7) | (207.1) | (687.5) |
Other comprehensive income (loss), net of tax | 98.2 | 9.3 | 101.8 | 90.4 |
Comprehensive income (loss) attributable to AAM | 133.7 | (156.4) | (105.3) | (597.1) |
Holdings [Member] | ||||
Net sales | ||||
External | 0 | 0 | 0 | 0 |
Intercompany | 0 | 0 | 0 | 0 |
Net sales | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Impairment charge | 0 | 0 | ||
Restructuring and acquisition-related costs | 0 | 0 | 0 | 0 |
Gain on sale of business | 0 | |||
Operating income (loss) | 0 | 0 | 0 | 0 |
Non-operating income (expense), net | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Earnings (loss) from equity in subsidiaries | (124.2) | 63.8 | (30.1) | 304.3 |
Net income (loss) before royalties | (124.2) | 63.8 | (30.1) | 304.3 |
Royalties | 0 | 0 | 0 | 0 |
Net income (loss) after royalties | (124.2) | 63.8 | (30.1) | 304.3 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AAM | (124.2) | 63.8 | (30.1) | 304.3 |
Other comprehensive income (loss), net of tax | (44.8) | 1.5 | (58.9) | (20.9) |
Comprehensive income (loss) attributable to AAM | (169) | 65.3 | (89) | 283.4 |
AAM Inc. [Member] | ||||
Net sales | ||||
External | 205.7 | 247.1 | 711.8 | 851.4 |
Intercompany | 0.5 | 0.7 | 1.5 | 4 |
Net sales | 206.2 | 247.8 | 713.3 | 855.4 |
Cost of goods sold | 221.2 | 220.6 | 721.1 | 804.5 |
Gross profit | (15) | 27.2 | (7.8) | 50.9 |
Selling, general and administrative expenses | 68.9 | 63.4 | 208.9 | 183.4 |
Amortization of intangible assets | 1.4 | 1 | 4.3 | 3.9 |
Impairment charge | 0 | 0 | ||
Restructuring and acquisition-related costs | 6.2 | 5 | 17.1 | 31.1 |
Gain on sale of business | 0 | |||
Operating income (loss) | (91.5) | (42.2) | (238.1) | (167.5) |
Non-operating income (expense), net | (62.7) | (60) | (184) | (193.8) |
Income (loss) before income taxes | (154.2) | (102.2) | (422.1) | (361.3) |
Income tax expense (benefit) | (8.5) | (1) | (23.2) | 8.1 |
Earnings (loss) from equity in subsidiaries | 50.5 | 68.1 | 131.9 | 241.6 |
Net income (loss) before royalties | (95.2) | (33.1) | (267) | (127.8) |
Royalties | 86.6 | 87.6 | 241.2 | 256.8 |
Net income (loss) after royalties | (8.6) | 54.5 | (25.8) | 129 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AAM | (8.6) | 54.5 | (25.8) | 129 |
Other comprehensive income (loss), net of tax | (26.4) | 1 | (40.2) | (2.6) |
Comprehensive income (loss) attributable to AAM | (35) | 55.5 | (66) | 126.4 |
Guarantor Subsidiaries [Member] | ||||
Net sales | ||||
External | 506.5 | 544.3 | 1,561.8 | 1,699.2 |
Intercompany | 77 | 75.6 | 219.8 | 231.6 |
Net sales | 583.5 | 619.9 | 1,781.6 | 1,930.8 |
Cost of goods sold | 529.6 | 594.2 | 1,612.2 | 1,713.3 |
Gross profit | 53.9 | 25.7 | 169.4 | 217.5 |
Selling, general and administrative expenses | 6.8 | 19.6 | 22.4 | 61.4 |
Amortization of intangible assets | 21.4 | 22.9 | 66.6 | 68 |
Impairment charge | 225 | 225 | ||
Restructuring and acquisition-related costs | 4.1 | 3.9 | 12.3 | 31.8 |
Gain on sale of business | (15.5) | |||
Operating income (loss) | (203.4) | (20.7) | (156.9) | 71.8 |
Non-operating income (expense), net | 2.3 | 2.8 | 7 | 11 |
Income (loss) before income taxes | (201.1) | (17.9) | (149.9) | 82.8 |
Income tax expense (benefit) | (46.8) | 0.1 | (46.7) | 0.6 |
Earnings (loss) from equity in subsidiaries | 38.2 | 33.8 | 105.3 | 141.6 |
Net income (loss) before royalties | (116.1) | 15.8 | 2.1 | 223.8 |
Royalties | 0.7 | 0.7 | 2.2 | 2.6 |
Net income (loss) after royalties | (115.4) | 16.5 | 4.3 | 226.4 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AAM | (115.4) | 16.5 | 4.3 | 226.4 |
Other comprehensive income (loss), net of tax | (35.4) | (10.3) | (32.1) | (50.5) |
Comprehensive income (loss) attributable to AAM | (150.8) | 6.2 | (27.8) | 175.9 |
Non-Guarantor Subsidiaries [Member] | ||||
Net sales | ||||
External | 965.2 | 1,025.6 | 2,827.3 | 3,025.7 |
Intercompany | 16.5 | 10.8 | 37.2 | 31.1 |
Net sales | 981.7 | 1,036.4 | 2,864.5 | 3,056.8 |
Cost of goods sold | 771.9 | 821.9 | 2,306.9 | 2,410.1 |
Gross profit | 209.8 | 214.5 | 557.6 | 646.7 |
Selling, general and administrative expenses | 17 | 13.3 | 43.4 | 43.8 |
Amortization of intangible assets | 0.9 | 0.9 | 2.7 | 2.6 |
Impairment charge | 0 | 0 | ||
Restructuring and acquisition-related costs | 1.4 | 2.8 | 6.6 | 3.9 |
Gain on sale of business | 0 | |||
Operating income (loss) | 190.5 | 197.5 | 504.9 | 596.4 |
Non-operating income (expense), net | 0.3 | (1.9) | 0 | 18.3 |
Income (loss) before income taxes | 190.8 | 195.6 | 504.9 | 614.7 |
Income tax expense (benefit) | 14.9 | 12.4 | 32.5 | 22.7 |
Earnings (loss) from equity in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) before royalties | 175.9 | 183.2 | 472.4 | 592 |
Royalties | (87.3) | (88.3) | (243.4) | (259.4) |
Net income (loss) after royalties | 88.6 | 94.9 | 229 | 332.6 |
Net income attributable to noncontrolling interests | (0.1) | (0.2) | (0.4) | (0.5) |
Net income (loss) attributable to AAM | 88.5 | 94.7 | 228.6 | 332.1 |
Other comprehensive income (loss), net of tax | (36.4) | 0 | (29.5) | (37.3) |
Comprehensive income (loss) attributable to AAM | $ 52.1 | $ 94.7 | $ 199.1 | $ 294.8 |
Supplemental Guarantor Conden_5
Supplemental Guarantor Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 375.1 | $ 476.4 |
Accounts receivable, net | 976.9 | 966.5 |
Intercompany receivables | 0 | 0 |
Inventories, net | 403.1 | 459.7 |
Prepaid expenses and other | 130.9 | 127.2 |
Current assets held-for-sale | 312.2 | 0 |
Total current assets | 2,198.2 | 2,029.8 |
Property, plant and equipment, net | 2,326.4 | 2,514.4 |
Goodwill | 1,127.5 | 1,141.8 |
Other intangible assets, net | 881.5 | 1,111.1 |
Intercompany notes and accounts receivable | 0 | 0 |
Other assets and deferred charges | 782.7 | 713.6 |
Investment in subsidiaries | 0 | 0 |
Total assets | 7,316.3 | 7,510.7 |
Current liabilities | ||
Current portion of long-term debt | 23.8 | 121.6 |
Accounts payable | 703.7 | 840.2 |
Intercompany payables | 0 | 0 |
Accrued expenses and other | 407.9 | 395 |
Current liabilities held-for sale | 101.7 | 0 |
Total current liabilities | 1,237.1 | 1,356.8 |
Intercompany notes and accounts payable | 0 | 0 |
Long-term debt, net | 3,673.3 | 3,686.8 |
Other long-term liabilities | 996.3 | 980.8 |
Total liabilities | 5,906.7 | 6,024.4 |
Total AAM Stockholders’ equity | 1,406.8 | 1,483.9 |
Noncontrolling interests in subsidiaries | 2.8 | 2.4 |
Total stockholders' equity | 1,409.6 | 1,486.3 |
Total liabilities and stockholders' equity | 7,316.3 | 7,510.7 |
Consolidation, Eliminations [Member] | ||
Current assets | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivables | (9,769.2) | (5,787) |
Inventories, net | 0 | 0 |
Prepaid expenses and other | 0 | 0 |
Current assets held-for-sale | 0 | |
Total current assets | (9,769.2) | (5,787) |
Property, plant and equipment, net | 0 | 0 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Intercompany notes and accounts receivable | (1,728.8) | (1,461.3) |
Other assets and deferred charges | 0 | 0 |
Investment in subsidiaries | (6,381.4) | (6,780.7) |
Total assets | (17,879.4) | (14,029) |
Current liabilities | ||
Current portion of long-term debt | 0 | 0 |
Accounts payable | 0 | 0 |
Intercompany payables | (9,769.2) | (5,787) |
Accrued expenses and other | 0 | 0 |
Current liabilities held-for sale | 0 | |
Total current liabilities | (9,769.2) | (5,787) |
Intercompany notes and accounts payable | (1,728.8) | (1,461.3) |
Long-term debt, net | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Total liabilities | (11,498) | (7,248.3) |
Total AAM Stockholders’ equity | (6,378.6) | (6,778.3) |
Noncontrolling interests in subsidiaries | (2.8) | (2.4) |
Total stockholders' equity | (6,381.4) | (6,780.7) |
Total liabilities and stockholders' equity | (17,879.4) | (14,029) |
Holdings [Member] | ||
Current assets | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivables | 0 | 0 |
Inventories, net | 0 | 0 |
Prepaid expenses and other | 0 | 0 |
Current assets held-for-sale | 0 | |
Total current assets | 0 | 0 |
Property, plant and equipment, net | 0 | 0 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Intercompany notes and accounts receivable | 0 | 0 |
Other assets and deferred charges | 0 | 0 |
Investment in subsidiaries | 2,721.4 | 2,790.5 |
Total assets | 2,721.4 | 2,790.5 |
Current liabilities | ||
Current portion of long-term debt | 0 | 0 |
Accounts payable | 0 | 0 |
Intercompany payables | 0 | 0 |
Accrued expenses and other | 0 | 0 |
Current liabilities held-for sale | 0 | |
Total current liabilities | 0 | 0 |
Intercompany notes and accounts payable | 1,311.8 | 1,304.2 |
Long-term debt, net | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Total liabilities | 1,311.8 | 1,304.2 |
Total AAM Stockholders’ equity | 1,406.8 | 1,483.9 |
Noncontrolling interests in subsidiaries | 2.8 | 2.4 |
Total stockholders' equity | 1,409.6 | 1,486.3 |
Total liabilities and stockholders' equity | 2,721.4 | 2,790.5 |
AAM Inc. [Member] | ||
Current assets | ||
Cash and cash equivalents | 79.4 | 36.7 |
Accounts receivable, net | 95.2 | 122.7 |
Intercompany receivables | 4,864.1 | 3,337.2 |
Inventories, net | 62.8 | 42.5 |
Prepaid expenses and other | 34.3 | 34.4 |
Current assets held-for-sale | 0 | |
Total current assets | 5,135.8 | 3,573.5 |
Property, plant and equipment, net | 294.1 | 275.8 |
Goodwill | 0 | 0 |
Other intangible assets, net | 15.4 | 18.6 |
Intercompany notes and accounts receivable | 1,542.1 | 1,316.8 |
Other assets and deferred charges | 339.7 | 319.8 |
Investment in subsidiaries | 2,155.9 | 2,241.5 |
Total assets | 9,483 | 7,746 |
Current liabilities | ||
Current portion of long-term debt | 2.1 | 100 |
Accounts payable | 101.3 | 94.2 |
Intercompany payables | 3,931.7 | 2,050 |
Accrued expenses and other | 165.2 | 169 |
Current liabilities held-for sale | 0 | |
Total current liabilities | 4,200.3 | 2,413.2 |
Intercompany notes and accounts payable | 36 | 12.5 |
Long-term debt, net | 3,581.8 | 3,578.3 |
Other long-term liabilities | 503 | 508.9 |
Total liabilities | 8,321.1 | 6,512.9 |
Total AAM Stockholders’ equity | 1,161.9 | 1,233.1 |
Noncontrolling interests in subsidiaries | 0 | 0 |
Total stockholders' equity | 1,161.9 | 1,233.1 |
Total liabilities and stockholders' equity | 9,483 | 7,746 |
Guarantor Subsidiaries [Member] | ||
Current assets | ||
Cash and cash equivalents | 0.1 | 0.2 |
Accounts receivable, net | 230.8 | 287.7 |
Intercompany receivables | 4,722.1 | 2,356.3 |
Inventories, net | 116.9 | 157.7 |
Prepaid expenses and other | 3.7 | 6 |
Current assets held-for-sale | 312.2 | |
Total current assets | 5,385.8 | 2,807.9 |
Property, plant and equipment, net | 554.5 | 758.6 |
Goodwill | 719 | 719 |
Other intangible assets, net | 836.9 | 1,059.6 |
Intercompany notes and accounts receivable | 186.7 | 144.5 |
Other assets and deferred charges | 118.1 | 126.4 |
Investment in subsidiaries | 1,504.1 | 1,748.7 |
Total assets | 9,305.1 | 7,364.7 |
Current liabilities | ||
Current portion of long-term debt | 5.3 | 0 |
Accounts payable | 169.1 | 246.5 |
Intercompany payables | 5,835.5 | 3,615.7 |
Accrued expenses and other | 34.9 | 35.8 |
Current liabilities held-for sale | 101.7 | |
Total current liabilities | 6,146.5 | 3,898 |
Intercompany notes and accounts payable | 0 | 0 |
Long-term debt, net | 0 | 3 |
Other long-term liabilities | 243.1 | 271.7 |
Total liabilities | 6,389.6 | 4,172.7 |
Total AAM Stockholders’ equity | 2,915.5 | 3,192 |
Noncontrolling interests in subsidiaries | 0 | 0 |
Total stockholders' equity | 2,915.5 | 3,192 |
Total liabilities and stockholders' equity | 9,305.1 | 7,364.7 |
Non-Guarantor Subsidiaries [Member] | ||
Current assets | ||
Cash and cash equivalents | 295.6 | 439.5 |
Accounts receivable, net | 650.9 | 556.1 |
Intercompany receivables | 183 | 93.5 |
Inventories, net | 223.4 | 259.5 |
Prepaid expenses and other | 92.9 | 86.8 |
Current assets held-for-sale | 0 | |
Total current assets | 1,445.8 | 1,435.4 |
Property, plant and equipment, net | 1,477.8 | 1,480 |
Goodwill | 408.5 | 422.8 |
Other intangible assets, net | 29.2 | 32.9 |
Intercompany notes and accounts receivable | 0 | 0 |
Other assets and deferred charges | 324.9 | 267.4 |
Investment in subsidiaries | 0 | 0 |
Total assets | 3,686.2 | 3,638.5 |
Current liabilities | ||
Current portion of long-term debt | 16.4 | 21.6 |
Accounts payable | 433.3 | 499.5 |
Intercompany payables | 2 | 121.3 |
Accrued expenses and other | 207.8 | 190.2 |
Current liabilities held-for sale | 0 | |
Total current liabilities | 659.5 | 832.6 |
Intercompany notes and accounts payable | 381 | 144.6 |
Long-term debt, net | 91.5 | 105.5 |
Other long-term liabilities | 250.2 | 200.2 |
Total liabilities | 1,382.2 | 1,282.9 |
Total AAM Stockholders’ equity | 2,301.2 | 2,353.2 |
Noncontrolling interests in subsidiaries | 2.8 | 2.4 |
Total stockholders' equity | 2,304 | 2,355.6 |
Total liabilities and stockholders' equity | $ 3,686.2 | $ 3,638.5 |
Supplemental Guarantor Conden_6
Supplemental Guarantor Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net cash provided by operating activities | $ 378.6 | $ 513.2 | ||
Investing activities | ||||
Purchases of property, plant and equipment | (335.3) | (391.8) | ||
Proceeds from sale of property, plant and equipment | 2 | 3.2 | ||
Investment in joint venture | (2.2) | 0 | ||
Purchase buyouts of leased equipment | 0 | (0.5) | ||
Proceeds from sale of business, net | 0 | 47.1 | ||
Acquisition of business, net of cash acquired | 0 | (1.3) | ||
Intercompany Activity - Investing | 0 | 0 | ||
Net cash used in investing activities | (335.5) | (343.3) | ||
Financing activities | ||||
Net debt activity | (129.3) | (86.7) | ||
Debt issuance costs | (3.3) | (6.9) | ||
Purchase of treasury stock | (7.5) | (3.7) | ||
Purchase of noncontrolling interest | 0 | (2.2) | ||
Intercompany Activity - Financing | 0 | 0 | ||
Net cash used in financing activities | (140.1) | (99.5) | ||
Effect of exchange rate changes on cash | (4.3) | (5.3) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (101.3) | 65.1 | ||
Cash, cash equivalents and restricted cash | 377.6 | 441.9 | $ 478.9 | $ 376.8 |
Consolidation, Eliminations [Member] | ||||
Net cash provided by operating activities | 0 | 0 | ||
Investing activities | ||||
Purchases of property, plant and equipment | 0 | 0 | ||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||
Investment in joint venture | 0 | |||
Purchase buyouts of leased equipment | 0 | |||
Proceeds from sale of business, net | 0 | |||
Acquisition of business, net of cash acquired | 0 | |||
Intercompany Activity - Investing | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | ||
Financing activities | ||||
Net debt activity | 0 | 0 | ||
Debt issuance costs | 0 | 0 | ||
Purchase of treasury stock | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | |||
Intercompany Activity - Financing | 0 | 0 | ||
Net cash used in financing activities | 0 | 0 | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | ||
Cash, cash equivalents and restricted cash | 0 | 0 | 0 | 0 |
Holdings [Member] | ||||
Net cash provided by operating activities | 0 | 0 | ||
Investing activities | ||||
Purchases of property, plant and equipment | 0 | 0 | ||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||
Investment in joint venture | 0 | |||
Purchase buyouts of leased equipment | 0 | |||
Proceeds from sale of business, net | 0 | |||
Acquisition of business, net of cash acquired | 0 | |||
Intercompany Activity - Investing | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | ||
Financing activities | ||||
Net debt activity | 0 | 0 | ||
Debt issuance costs | 0 | 0 | ||
Purchase of treasury stock | (7.5) | (3.7) | ||
Purchase of noncontrolling interest | 0 | |||
Intercompany Activity - Financing | 7.5 | 3.7 | ||
Net cash used in financing activities | 0 | 0 | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | ||
Cash, cash equivalents and restricted cash | 0 | 0 | 0 | 0 |
AAM Inc. [Member] | ||||
Net cash provided by operating activities | 214.1 | 240 | ||
Investing activities | ||||
Purchases of property, plant and equipment | (46.8) | (51.8) | ||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||
Investment in joint venture | 0 | |||
Purchase buyouts of leased equipment | 0 | |||
Proceeds from sale of business, net | 0 | |||
Acquisition of business, net of cash acquired | 0 | |||
Intercompany Activity - Investing | 0 | 0 | ||
Net cash used in investing activities | (46.8) | (51.8) | ||
Financing activities | ||||
Net debt activity | (113.8) | (140.3) | ||
Debt issuance costs | (3.3) | (6.9) | ||
Purchase of treasury stock | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | |||
Intercompany Activity - Financing | (7.5) | (3.7) | ||
Net cash used in financing activities | (124.6) | (150.9) | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 42.7 | 37.3 | ||
Cash, cash equivalents and restricted cash | 79.4 | 129.2 | 36.7 | 91.9 |
Guarantor Subsidiaries [Member] | ||||
Net cash provided by operating activities | 20.4 | 103 | ||
Investing activities | ||||
Purchases of property, plant and equipment | (91) | (121.2) | ||
Proceeds from sale of property, plant and equipment | 1.7 | 2.7 | ||
Investment in joint venture | 0 | |||
Purchase buyouts of leased equipment | (0.5) | |||
Proceeds from sale of business, net | 42.7 | |||
Acquisition of business, net of cash acquired | 0 | |||
Intercompany Activity - Investing | (12) | (43.8) | ||
Net cash used in investing activities | (101.3) | (120.1) | ||
Financing activities | ||||
Net debt activity | (0.2) | (0.6) | ||
Debt issuance costs | 0 | 0 | ||
Purchase of treasury stock | 0 | 0 | ||
Purchase of noncontrolling interest | (2.2) | |||
Intercompany Activity - Financing | 81 | 22.5 | ||
Net cash used in financing activities | 80.8 | 19.7 | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (0.1) | 2.6 | ||
Cash, cash equivalents and restricted cash | 2.6 | 2.7 | 2.7 | 0.1 |
Non-Guarantor Subsidiaries [Member] | ||||
Net cash provided by operating activities | 144.1 | 170.2 | ||
Investing activities | ||||
Purchases of property, plant and equipment | (197.5) | (218.8) | ||
Proceeds from sale of property, plant and equipment | 0.3 | 0.5 | ||
Investment in joint venture | (2.2) | |||
Purchase buyouts of leased equipment | 0 | |||
Proceeds from sale of business, net | 4.4 | |||
Acquisition of business, net of cash acquired | (1.3) | |||
Intercompany Activity - Investing | 12 | 43.8 | ||
Net cash used in investing activities | (187.4) | (171.4) | ||
Financing activities | ||||
Net debt activity | (15.3) | 54.2 | ||
Debt issuance costs | 0 | 0 | ||
Purchase of treasury stock | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | |||
Intercompany Activity - Financing | (81) | (22.5) | ||
Net cash used in financing activities | (96.3) | 31.7 | ||
Effect of exchange rate changes on cash | (4.3) | (5.3) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (143.9) | 25.2 | ||
Cash, cash equivalents and restricted cash | $ 295.6 | $ 310 | $ 439.5 | $ 284.8 |