Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 27, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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 $0.01 per share | |
Trading Symbol | AXL | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 113,272,990 | |
Entity Central Index Key | 0001062231 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 1,414.1 | $ 1,677.4 | $ 3,272.9 | $ 5,100.9 |
Cost of goods sold | 1,164.3 | 1,428.7 | 2,926.7 | 4,381.7 |
Gross profit | 249.8 | 248.7 | 346.2 | 719.2 |
Selling, general and administrative expenses | 66.5 | 92.7 | 230.6 | 274.7 |
Amortization of intangible assets | 21.6 | 23.7 | 65 | 73.6 |
Impairment charges | 0 | 225 | 510 | 225 |
Restructuring and acquisition-related costs | 9.7 | 11.7 | 38.6 | 36 |
Loss on sale of business | 0 | 0 | 1 | 0 |
Operating income (loss) | 152 | (104.4) | (499) | 109.9 |
Interest expense | (53.9) | (54.3) | (160) | (163.9) |
Interest income | 3.4 | 2.2 | 9.2 | 3.4 |
Debt refinancing and redemption costs | (5.2) | (5.1) | (6.7) | (7.5) |
Other expense, net | (1.6) | (2.9) | (3.8) | (9) |
Income (loss) before income taxes | 94.7 | (164.5) | (660.3) | (67.1) |
Income tax benefit | (22.5) | (40.4) | (63.1) | (37.4) |
Net income (loss) | 117.2 | (124.1) | (597.2) | (29.7) |
Net income attributable to noncontrolling interests | 0 | (0.1) | (0.1) | (0.4) |
Net income (loss) attributable to AAM | $ 117.2 | $ (124.2) | $ (597.3) | $ (30.1) |
Basic earnings (loss) per share | $ 0.99 | $ (1.10) | $ (5.28) | $ (0.27) |
Diluted earnings (loss) per share | $ 0.99 | $ (1.10) | $ (5.28) | $ (0.27) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Net income (loss) | $ 117.2 | $ (124.1) | $ (597.2) | $ (29.7) | |
Other comprehensive income (loss) | |||||
Defined benefit plans, net of tax | [1] | 1.7 | (1.3) | 5 | 0.5 |
Foreign currency translation adjustments | 14 | (37.1) | (30) | (34.7) | |
Changes in cash flow hedges, net of tax | [2] | 6.7 | (6.4) | (19.3) | (24.7) |
Other comprehensive income (loss) | 22.4 | (44.8) | (44.3) | (58.9) | |
Comprehensive income (loss) | 139.6 | (168.9) | (641.5) | (88.6) | |
Net income attributable to noncontrolling interests | 0 | (0.1) | (0.1) | (0.4) | |
Foreign currency translation adjustments attributable to noncontrolling interests | 0 | 0 | 0.3 | 0 | |
Comprehensive income (loss) attributable to AAM | $ 139.6 | $ (169) | $ (641.3) | $ (89) | |
[1] | Amounts are net of tax of $(0.4) million and $(1.2) million for the three and nine months ended September 30, 2020, and $0.3 million and $(0.2) million for the three and nine months ended September 30, 2019, respectively. | ||||
[2] | Amounts are net of tax of $(0.2) million and $1.6 million for the three and nine months ended September 30, 2020, and $1.1 million and $7.3 million for the three and nine months ended September 30, 2019, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | $ (0.4) | $ 0.3 | $ (1.2) | $ (0.2) |
Other comprehensive income (loss), derivatives qualifying as hedges, tax | $ (0.2) | $ 1.1 | $ 1.6 | $ 7.3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 537.3 | $ 532 |
Accounts receivable, net | 900.8 | 815.4 |
Inventories, net | 315.8 | 373.6 |
Prepaid expenses and other | 158.7 | 136.8 |
Total current assets | 1,912.6 | 1,857.8 |
Property, plant and equipment, net | 2,157.9 | 2,358.4 |
Deferred income taxes | 104.6 | 64.1 |
Goodwill | 183.6 | 699.1 |
Other intangible assets, net | 801.5 | 864.5 |
GM postretirement cost sharing asset | 221.9 | 223.3 |
Other assets and deferred charges | 560 | 577.4 |
Total assets | 5,942.1 | 6,644.6 |
Current liabilities | ||
Current portion of long-term debt | 26.5 | 28.7 |
Accounts payable | 622 | 623.5 |
Accrued compensation and benefits | 163.5 | 154.4 |
Deferred revenue | 22.8 | 18.9 |
Accrued expenses and other | 189.5 | 200.9 |
Total current liabilities | 1,024.3 | 1,026.4 |
Long-term debt, net | 3,555.4 | 3,612.3 |
Deferred revenue | 75.6 | 83.7 |
Deferred income taxes | 19.7 | 19.6 |
Postretirement benefits and other long-term liabilities | 923.6 | 922.2 |
Total liabilities | 5,598.6 | 5,664.2 |
Stockholders' equity | ||
Common stock, par value $0.01 per share; 150.0 million shares authorized; 121.3 million shares issued as of September 30, 2020 and 120.2 million shares issued as of December 31, 2019 | 1.2 | 1.2 |
Paid-in capital | 1,328.3 | 1,313.9 |
Retained earnings (Accumulated deficit) | (355.8) | 248.6 |
Treasury stock at cost, 8.0 million shares as of September 30, 2020 and 7.6 million shares as of December 31, 2019 | (212) | (209.3) |
Accumulated other comprehensive loss | ||
Defined benefit plans, net of tax | (254.9) | (259.9) |
Foreign currency translation adjustments | (130.9) | (101.2) |
Unrecognized loss on cash flow hedges, net of tax | (35) | (15.7) |
Total AAM stockholders' equity | 340.9 | 977.6 |
Noncontrolling interests in subsidiaries | 2.6 | 2.8 |
Total stockholders' equity | 343.5 | 980.4 |
Total liabilities and stockholders' equity | $ 5,942.1 | $ 6,644.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150 | 150 |
Common stock, shares, issued | 121.3 | 120.2 |
Treasury stock, shares | 8 | 7.6 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net loss | $ (597.2) | $ (29.7) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 393.7 | 411.5 |
Impairment charges | 510 | 225 |
Deferred income taxes | (38.4) | (87.6) |
Stock-based compensation | 14.4 | 17.5 |
Pensions and other postretirement benefits, net of contributions | (6.5) | (10.4) |
Loss on disposal of property, plant and equipment, net | 16.4 | 1.3 |
Debt refinancing and redemption costs | 6.7 | 7.5 |
Changes in operating assets and liabilities | ||
Accounts receivable | (88) | (108.4) |
Inventories | 56.9 | 18.8 |
Accounts payable and accrued expenses | 5.6 | 8.6 |
Deferred revenue | (6.6) | (12.9) |
Other assets and liabilities | (20.6) | (62.6) |
Net cash provided by operating activities | 246.4 | 378.6 |
Investing activities | ||
Purchases of property, plant and equipment | (146.3) | (335.3) |
Proceeds from sale of property, plant and equipment | 1.6 | 2 |
Investment in joint venture | 0 | (2.2) |
Purchase buyouts of leased equipment | (0.1) | 0 |
Final settlement on sale of business | (4.4) | 0 |
Net cash used in investing activities | (149.2) | (335.5) |
Financing activities | ||
Proceeds from Revolving Credit Facility | 350 | 0 |
Payments of Revolving Credit Facility | (350) | 0 |
Proceeds from issuance of long-term debt | 408.9 | 348.4 |
Payments of long-term debt | (482.2) | (477.7) |
Debt issuance costs | (11) | (3.3) |
Purchase of treasury stock | (2.7) | (7.5) |
Other financing activities | (0.6) | 0 |
Net cash used in financing activities | (87.6) | (140.1) |
Effect of exchange rate changes on cash | (4.3) | (4.3) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 5.3 | (101.3) |
Cash, cash equivalents and restricted cash at beginning of period | 532 | 478.9 |
Cash, cash equivalents and restricted cash at end of period | 537.3 | 377.6 |
Supplemental cash flow information | ||
Interest paid | 138 | 136.3 |
Income taxes paid (refunds received), net | $ (5.2) | $ 45.7 |
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 (Accumulated Deficit) | Treasury Stock | AOCI Attributable to Parent | Noncontrolling Interest | ||
Common stock, shares, outstanding at Dec. 31, 2018 | 111.7 | ||||||||
Total AAM stockholders' equity at Dec. 31, 2018 | $ 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, effect of adoption | ASU 2016-02 [Member] | 1.9 | ||||||||
New accounting pronouncement, effect of adoption | 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, net of tax | (2.5) | ||||||||
Foreign currency translation adjustments | (2.5) | ||||||||
Defined benefit plans, net of tax | 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 | 1.2 | 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 | ||||||||
Changes in cash flow hedges, net of tax | [1] | (24.7) | |||||||
Foreign currency translation adjustments | (34.7) | ||||||||
Foreign currency translation adjustments attributable to noncontrolling interests | 0 | ||||||||
Defined benefit plans, net of tax | [2] | $ (0.5) | |||||||
Common stock, shares, outstanding at Sep. 30, 2019 | 112.5 | ||||||||
Total AAM stockholders' equity at Sep. 30, 2019 | 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, net of tax | (15.8) | ||||||||
Foreign currency translation adjustments | 4.9 | ||||||||
Defined benefit plans, net of tax | 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, net of tax | (6.4) | [1] | (6.4) | ||||||
Foreign currency translation adjustments | (37.1) | (37.1) | |||||||
Foreign currency translation adjustments attributable to noncontrolling interests | 0 | ||||||||
Defined benefit plans, net of tax | $ 1.3 | [2] | (1.3) | ||||||
Common stock, shares, outstanding at Sep. 30, 2019 | 112.5 | ||||||||
Total AAM stockholders' equity at Sep. 30, 2019 | 1.2 | 1,310.1 | 703 | (209.3) | (398.2) | 2.8 | |||
Common stock, shares, outstanding at Dec. 31, 2019 | 112.6 | ||||||||
Total AAM stockholders' equity at Dec. 31, 2019 | $ 977.6 | 1.2 | 1,313.9 | 248.6 | (209.3) | (376.8) | 2.8 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) attributable to AAM | (501.3) | ||||||||
Net income (loss) attributable to noncontrolling interest | 0.1 | ||||||||
Stock issued during period, shares, share-based compensation, net of forfeitures | 0.8 | ||||||||
Stock-based compensation | 4.6 | ||||||||
New accounting pronouncement, effect of adoption | ASU 2016-13 [Member] | (7.1) | ||||||||
Treasury stock, shares, acquired | (0.4) | ||||||||
Purchase of treasury stock | (2.4) | ||||||||
Changes in cash flow hedges, net of tax | (34.7) | ||||||||
Foreign currency translation adjustments | (48.5) | ||||||||
Foreign currency translation adjustments attributable to noncontrolling interests | (0.3) | ||||||||
Defined benefit plans, net of tax | 1.6 | ||||||||
Common stock, shares, outstanding at Mar. 31, 2020 | 113 | ||||||||
Total AAM stockholders' equity at Mar. 31, 2020 | 1.2 | 1,318.5 | (259.8) | (211.7) | (458.4) | 2.6 | |||
Common stock, shares, outstanding at Dec. 31, 2019 | 112.6 | ||||||||
Total AAM stockholders' equity at Dec. 31, 2019 | $ 977.6 | 1.2 | 1,313.9 | 248.6 | (209.3) | (376.8) | 2.8 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) attributable to AAM | (597.3) | ||||||||
Net income (loss) attributable to noncontrolling interest | 0.1 | ||||||||
Purchase of treasury stock | 2.7 | ||||||||
Changes in cash flow hedges, net of tax | [1] | (19.3) | |||||||
Foreign currency translation adjustments | (30) | ||||||||
Foreign currency translation adjustments attributable to noncontrolling interests | (0.3) | ||||||||
Defined benefit plans, net of tax | [2] | $ (5) | |||||||
Common stock, shares, outstanding at Sep. 30, 2020 | 113.3 | ||||||||
Total AAM stockholders' equity at Sep. 30, 2020 | $ 340.9 | 1.2 | 1,328.3 | (355.8) | (212) | (420.8) | 2.6 | ||
Common stock, shares, outstanding at Mar. 31, 2020 | 113 | ||||||||
Total AAM stockholders' equity at Mar. 31, 2020 | 1.2 | 1,318.5 | (259.8) | (211.7) | (458.4) | 2.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) attributable to AAM | (213.2) | ||||||||
Net income (loss) attributable to noncontrolling interest | 0 | ||||||||
Stock issued during period, shares, share-based compensation, net of forfeitures | 0.3 | ||||||||
Stock-based compensation | 4.7 | ||||||||
Treasury stock, shares, acquired | 0 | ||||||||
Purchase of treasury stock | (0.3) | ||||||||
Changes in cash flow hedges, net of tax | 8.7 | ||||||||
Foreign currency translation adjustments | 4.8 | ||||||||
Defined benefit plans, net of tax | 1.7 | ||||||||
Common stock, shares, outstanding at Jun. 30, 2020 | 113.3 | ||||||||
Total AAM stockholders' equity at Jun. 30, 2020 | 1.2 | 1,323.2 | (473) | (212) | (443.2) | 2.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) attributable to AAM | $ 117.2 | 117.2 | |||||||
Net income (loss) attributable to noncontrolling interest | 0 | 0 | |||||||
Stock-based compensation | 5.1 | ||||||||
Changes in cash flow hedges, net of tax | 6.7 | [1] | 6.7 | ||||||
Foreign currency translation adjustments | 14 | 14 | |||||||
Foreign currency translation adjustments attributable to noncontrolling interests | 0 | ||||||||
Defined benefit plans, net of tax | $ (1.7) | [2] | 1.7 | ||||||
Common stock, shares, outstanding at Sep. 30, 2020 | 113.3 | ||||||||
Total AAM stockholders' equity at Sep. 30, 2020 | $ 340.9 | $ 1.2 | $ 1,328.3 | $ (355.8) | $ (212) | $ (420.8) | $ 2.6 | ||
[1] | Amounts are net of tax of $(0.2) million and $1.6 million for the three and nine months ended September 30, 2020, and $1.1 million and $7.3 million for the three and nine months ended September 30, 2019, respectively. | ||||||||
[2] | Amounts are net of tax of $(0.4) million and $(1.2) million for the three and nine months ended September 30, 2020, and $0.3 million and $(0.2) million for the three and nine months ended September 30, 2019, respectively. |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
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 and metal forming products that are making the next generation of vehicles smarter, lighter, safer and more efficient. We employ approximately 20,000 associates, operating at nearly 80 facilities in 17 countries, to support our customers on global and regional platforms with a continued focus on delivering quality, operational excellence and technology leadership. 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, 2019 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. These estimates and assumptions are impacted by risks and uncertainties, including those associated with the Novel Coronavirus (COVID-19) pandemic that began in the first quarter of 2020. While we have made estimates and assumptions based on the facts and circumstances available as of the date of this report, the full impact of COVID-19 cannot be predicted, and actual results could differ materially from those estimates and assumptions. 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, 2019. Manufacturing Facility Fire and Insurance Recovery On September 22, 2020, a significant industrial fire occurred at our Malvern Manufacturing Facility in Ohio (Malvern Fire). All associates were evacuated safely and without injury. We continue to focus on managing this disruption and protecting continuity of supply to our customers, including utilizing production capacity and resources at other AAM facilities. Our insurance policies are expected to cover the repair, replacement or actual cash value of the assets that incurred loss or damage, less our applicable deductible of $1 million. In addition, our insurance policies are expected to provide coverage for interruption to our business, including lost or reduced profits and reimbursement for certain expenses and costs that are incurred relating to the fire. In the third quarter of 2020, we recorded $28.4 million of charges primarily related to the write-down of property, plant and equipment (PP&E) as a result of damage from the fire. We also recorded an insurance recovery receivable primarily associated with the write-down of PP&E of $19.8 million in the third quarter of 2020, which is included in Prepaid expenses and other in our Condensed Consolidated Balance Sheet as of September 30, 2020. This resulted in a net pre-tax impact to our Condensed Consolidated Statement of Operations of approximately $8.6 million in Cost of goods sold for the three and nine months ended September 30, 2020, which includes our applicable deductible. We continue to assess the extent of the damage caused by the fire. As such, we cannot estimate the total impact, including potential insurance recoveries, on our results of operations, financial position or cash flows, or the timing of such impact. Sale of U.S. Casting - Classification of Assets and Liabilities as Held-for-Sale In the fourth quarter of 2019, we completed the sale of the U.S operations of our former Casting segment (the Casting Sale). In conjunction with the Casting Sale, the assets and liabilities associated with this business 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. Effect of New Accounting Standards and Other Regulatory Pronouncements Accounting Standard Update 2020-04 On March 12, 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2020-04 - Reference Rate Reform (Topic 848) . This guidance provides optional expedients and exceptions that are intended to ease the burden of updating contracts to contain a new reference rate due to the discontinuation of the London Inter-Bank Offered Rate (LIBOR). This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. We are currently assessing which of our various contracts will require an update for a new reference rate and will determine the timing for our implementation of this guidance at the completion of that analysis. Accounting Standard Update 2019-12 On December 18, 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740) . This guidance is intended to simplify the accounting and disclosure requirements for income taxes by removing various exceptions and requires that the effect of an enacted change in tax laws or rates be included in the annual effective tax rate computation in the interim period of the enactment. This guidance becomes effective at the beginning of our 2021 fiscal year. We expect to adopt this guidance on January 1, 2021 and we do not expect that this standard will have a material impact on our consolidated financial statements. Accounting Standards Update 2016-13 On June 16, 2016, the FASB issued 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 replaces the incurred loss model under previous guidance, and requires entities to consider expected credit losses, in addition to past events and current conditions when measuring credit losses. This guidance applies to certain of our financial instruments and is primarily applicable to our trade accounts receivable. We adopted this guidance on January 1, 2020, using a modified-retrospective transition method and the adoption of this standard did not have a material impact on our condensed consolidated financial statements. See the Statement of Stockholders' Equity for the implementation impact of ASU 2016-13. Securities and Exchange Commission (SEC) Rule In the first quarter of 2020, the SEC adopted "Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant's Securities," a rule that amends the financial disclosure requirements for guarantors and issuers of registered guaranteed securities. This rule eliminates the previous requirement to present guarantor financial statement information in the notes to the financial statements and allows for the disclosure of summarized financial information for the most recent year and interim period, as well as expanded non-financial disclosures, in Management's Discussion and Analysis (MD&A). The effective date for this rule is January 4, 2021, however, the SEC permitted voluntary compliance prior to this date and we elected to adopt the new disclosure requirements in the first quarter of 2020. As such, we no longer present guarantor financial statement information in the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q, but instead present the required information within MD&A. Coronavirus Aid, Relief, and Economic Security Act The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was enacted on March 27, 2020 in the United States. The key provisions of the CARES Act, as applicable to AAM, include the following: • The ability to use net operating losses (NOLs) to offset income without the 80% taxable income limitation enacted as part of the Tax Cuts and Jobs Act (TCJA) of 2017, and to carry back NOLs to offset prior year income for five years. These are temporary provisions that apply to NOLs incurred in 2018, 2019 or 2020 tax years. • The ability to claim a current deduction for interest expense up to 50% of Adjusted Taxable Income (ATI) for tax years 2019 and 2020. This limitation was previously 30% of ATI pursuant to the TCJA, and will revert to 30% after 2020. • The ability to defer the payment of the employer portion of social security taxes incurred between March 27, 2020 and December 31, 2020, with 50% of the deferred amount to be paid by December 31, 2021 and the remaining 50% to be paid by December 31, 2022. • The ability to claim an Employee Retention Credit (ERC), which is a refundable payroll tax credit, for 50% of qualified wages or benefits, subject to certain limitations, that are paid to an employee when they are not providing services due to COVID-19. The ERC applies to qualified wages paid or incurred during the period March 13, 2020 through December 31, 2020 and is available to eligible employers whose operations were fully or partially suspended due to COVID-19, or whose gross receipts declined by more than 50% when compared to the applicable period in the prior year. |
Restructuring and Acquisition-R
Restructuring and Acquisition-Related Costs (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | 2. RESTRUCTURING AND ACQUISITION-RELATED COSTS In the first quarter of 2019, we initiated a global restructuring program (the 2019 Program). The primary objectives of the 2019 Program were 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. In the first quarter of 2020, we initiated a new global restructuring program (the 2020 Program) that supersedes the 2019 Program. The primary objectives of the 2020 Program are to achieve efficiencies within our corporate and business unit support teams to reduce cost in our business, and to structurally adjust our operations to a new level of market demand based on the impact of COVID-19. We expect to incur costs under the 2020 Program into 2022. A summary of our restructuring activity for the first nine months of 2020 and 2019 is shown below: Severance Charges Implementation Costs Total (in millions) 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 Accrual at December 31, 2019 $ 4.8 $ 7.4 $ 12.2 Charges 19.9 11.9 31.8 Cash utilization (19.9) (11.0) (30.9) Accrual at September 30, 2020 $ 4.8 $ 8.3 $ 13.1 As part of our restructuring actions, we incurred total severance charges of approximately $19.9 million and $10.4 million during the nine months ended September 30, 2020 and 2019, respectively. We also incurred total implementation costs of approximately $11.9 million and $13.1 million during the nine months ended September 30, 2020 and 2019, respectively. Implementation costs in both periods consist primarily of plant exit costs. Approximately $22.9 million of the restructuring costs incurred during the nine months ended September 30, 2020 were under the 2020 Program. Approximately $14.4 million and $13.1 million of our total restructuring costs for the nine months ended September 30, 2020 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. Approximately $2.0 million, $14.4 million and $0.7 million of our total restructuring costs for the nine months ended September 30, 2019 related to our Driveline, Metal Forming and former Casting segments, respectively, while the remainder were corporate costs. We expect to incur approximately $70 million to $80 million of total restructuring charges in 2020, including costs incurred under the 2020 Program. During the nine months ended September 30, 2020 and 2019, we incurred the following integration charges primarily related to the integration of MPG: Integration Expenses (in millions) Charges for the nine months ended September 30, 2020 $ 6.8 Charges for the nine months ended September 30, 2019 12.5 These integration expenses primarily reflect costs incurred for information technology infrastructure and enterprise resource planning systems. 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, and totaled $9.7 million and $38.6 million for the three and nine months ended September 30, 2020, respectively, and $11.7 million and $36.0 million for the three and nine months ended September 30, 2019, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 3. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table provides a reconciliation of changes in goodwill for the nine months ended September 30, 2020: Driveline Metal Forming Consolidated (in millions) Balance at December 31, 2019 $ 398.3 $ 300.8 $ 699.1 Impairment charge (210.8) (299.2) (510.0) Foreign currency translation (3.9) (1.6) (5.5) Balance at September 30, 2020 $ 183.6 $ — $ 183.6 In the first quarter of 2020, the reduction in global automotive production volumes caused by the impact of COVID-19 represented an indicator to test our goodwill for impairment. This reduction in production volumes began in March of 2020 and resulted in lower forecasted sales volumes in the periods included in our long-range plan as revised in the first quarter of 2020. In performing this test, we utilize a third-party valuation specialist to assist management in determining the fair value of our reporting units. Fair value of each reporting unit is estimated based on a combination of discounted cash flows and the use of pricing multiples derived from an analysis of comparable public companies multiplied against historical and/or anticipated financial metrics of each reporting unit. These calculations contain uncertainties as they require management to make assumptions including, but not limited to, market comparables, future cash flows of the reporting units, and appropriate discount and long-term growth rates. This fair value determination is categorized as Level 3 within the fair value hierarchy. As a result of this goodwill impairment test in the first quarter of 2020, we determined that the carrying values of both our Driveline and Metal Forming reporting units were greater than their respective fair values. As such, we recorded a goodwill impairment charge of $210.8 million associated with our Driveline reporting unit and a goodwill impairment charge of $299.2 million associated with our Metal Forming reporting unit in the first quarter of 2020. The Metal Forming impairment charge represented a full impairment of the goodwill associated with that reporting unit. These impairment charges were primarily the result of a decline in the projected cash flows of these reporting units under our revised long-range plan completed in the first quarter of 2020. The revision to our long-range plan was driven by lower forecasted sales volumes in the internal and external data sources used to form our projections primarily due to the reduction in global automotive production volumes caused by the impact of COVID-19. The impairment charges were also the result of changes in certain market-related inputs to the analysis to reflect macro-economic changes caused by the impact of COVID-19, including increased discount rates and lower pricing multiples for comparable public companies. At September 30, 2020, accumulated goodwill impairment losses were $1,435.5 million. The reduction in production volumes and changes to macro-economic factors caused by the impact of COVID-19 also represented an indicator to test our long-lived assets, including other intangible assets and property, plant and equipment, for impairment. We completed this test in the first quarter of 2020 and there was no impairment of these assets. 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, 2020 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Capitalized computer software $ 47.2 $ (32.3) $ 14.9 $ 45.8 $ (27.6) $ 18.2 Customer platforms 856.2 (222.0) 634.2 856.2 (174.4) 681.8 Customer relationships 53.0 (12.0) 41.0 53.0 (9.4) 43.6 Technology and other 156.1 (44.7) 111.4 156.0 (35.1) 120.9 Total $ 1,112.5 $ (311.0) $ 801.5 $ 1,111.0 $ (246.5) $ 864.5 |
Inventories (Notes)
Inventories (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 4. 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, 2020 December 31, 2019 (in millions) Raw materials and work-in-progress $ 281.0 $ 310.4 Finished goods 62.2 83.7 Gross inventories 343.2 394.1 Inventory valuation reserves (27.4) (20.5) Inventories, net $ 315.8 $ 373.6 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | 5. LONG-TERM DEBT Long-term debt consists of the following: September 30, 2020 December 31, 2019 (in millions) Revolving Credit Facility $ — $ — Term Loan A Facility 337.9 340.0 Term Loan B Facility 1,188.8 1,188.8 6.875% Notes due 2028 400.0 — 6.625% Notes due 2022 — 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 104.5 113.4 Total debt 3,631.2 3,692.2 Less: Current portion of long-term debt 26.5 28.7 Long-term debt 3,604.7 3,663.5 Less: Debt issuance costs 49.3 51.2 Long-term debt, net $ 3,555.4 $ 3,612.3 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. The First Amendment, among other things, established $340 million in incremental term loan A commitments with a maturity date of July 29, 2024 (Term Loan A Facility due 2024), reduced the availability under the Revolving Credit Facility from $932 million to $925 million, and 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. This also satisfies all payment requirements under the Term Loan B Facility until maturity in 2024. In April 2020, Holdings, AAM, Inc., and certain subsidiaries of Holdings entered into the Second Amendment (Second Amendment) to the Credit Agreement. For the period from April 1, 2020 through March 31, 2022 (the Amendment Period), the Second Amendment, among other things, replaced the total net leverage ratio covenant with a new senior secured net leverage ratio covenant, reduced the minimum levels of the cash interest expense coverage ratio covenant, and modified certain covenants restricting the ability of Holdings, AAM and certain subsidiaries of Holdings to create, incur, assume or permit to exist certain additional indebtedness and liens and to make certain restricted payments, voluntary payments and distributions. The Second Amendment also increased the maximum levels of the total net leverage ratio covenant after the Amendment Period, 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, and increased the minimum adjusted London Interbank Offered Rate for Eurodollar-based loans under the Term Loan A Facility due 2024 and Revolving Credit Facility. The applicable margin for the Term Loan B Facility remains unchanged. We paid debt issuance costs of $4.6 million in the nine months ended September 30, 2020 related to the Second Amendment. At September 30, 2020, we had $891.4 million available under the Revolving Credit Facility. This availability reflects a reduction of $33.6 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. 6.875% Notes due 2028 In the second quarter of 2020, we issued $400 million in aggregate principal amount of 6.875% senior notes due 2028 (the 6.875% Notes). Proceeds from the 6.875% Notes were used primarily to fund the redemption of the remaining $350 million of 6.625% senior notes due 2022 described below and for general corporate purposes. We paid debt issuance costs of $6.4 million in the nine months ended September 30, 2020 related to the 6.875% Notes. Redemption of 6.625% Notes due 2022 In the first quarter of 2020, we voluntarily redeemed a portion of our 6.625% Notes due 2022. This resulted in a principal payment of $100 million and $2.0 million in accrued interest. We also expensed approximately $0.4 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 $1.1 million for an early redemption premium. In the third quarter of 2020, we voluntarily redeemed the remaining portion of our 6.625% Notes due 2022. This resulted in a principal payment of $350 million and $5.7 million in accrued interest. We also expensed approximately $1.3 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 $3.9 million for the payment of an early redemption premium. Foreign credit facilities We utilize local currency credit facilities to finance the operations of certain foreign subsidiaries. At September 30, 2020, $104.5 million was outstanding under our foreign credit facilities, as compared to $106.0 million at December 31, 2019. At September 30, 2020, an additional $54.7 million was available under our foreign credit facilities. |
Derivatives (Notes)
Derivatives (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 6. 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, 2020, we have currency forward contracts outstanding with a total notional amount of $155.8 million that hedge our exposure to changes in foreign currency exchange rates for certain payroll expenses into the second quarter of 2023 and other items into the second quarter of 2021. Fixed-to-fixed cross-currency swap In 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. In the first quarter of 2020, we discontinued this fixed-to-fixed cross-currency swap, which was in an asset position of $9.8 million on the date that it was discontinued. Also in the first quarter of 2020, we entered into a new 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, 2020, the notional amount of the fixed-to-fixed cross-currency swap was $234.4 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 2019, 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. We have the following notional amounts hedged in relation to our variable-to-fixed interest rate swap: $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 2020 2019 2020 2019 2020 Next 12 Months (in millions) Currency forward contracts Cost of Goods Sold $ (1.3) $ 0.9 $ (2.3) $ 1.8 $ 2,926.7 $ (2.6) Fixed-to-fixed cross-currency swap Other Income (Expense), net (9.3) 7.6 (9.3) 7.6 (3.8) 1.7 Variable-to-fixed interest rate swap Interest Expense (4.1) (1.7) (10.1) 0.2 (160.0) (15.9) See Note 12 - 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, 2020 and 2019. 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 2020 2019 2020 2019 2020 (in millions) Currency forward contracts Cost of Goods Sold $ 0.9 $ (0.5) $ (6.7) $ 1.3 $ 2,926.7 Currency forward contracts Other Income (Expense), net — 0.1 (0.5) (0.5) (3.8) |
Fair Value (Notes)
Fair Value (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 7. FAIR VALUE ASC 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, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Balance Sheet Classification Cash equivalents $ 216.0 $ 216.0 $ 271.3 $ 271.3 Level 1 Prepaid expenses and other Cash flow hedges - currency forward contracts 0.5 0.5 5.0 5.0 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 5.6 5.6 0.9 0.9 Level 2 Nondesignated - currency forward contracts — — 1.9 1.9 Level 2 Other assets and deferred charges Cash flow hedges - currency forward contracts 0.7 0.7 3.4 3.4 Level 2 Cash flow hedges - fixed-to-fixed cross-currency swap — — 1.1 1.1 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 10.5 10.5 2.2 2.2 Level 2 Accrued expenses and other Cash flow hedges - currency forward contracts 3.1 3.1 — — Level 2 Cash flow hedges - variable-to-fixed interest rate swap 19.1 19.1 7.9 7.9 Level 2 Nondesignated - currency forward contracts 0.1 0.1 — — Level 2 Postretirement benefits and other long-term liabilities Cash flow hedges - currency forward contracts 2.9 2.9 — — Level 2 Cash flow hedges - fixed-to-fixed cross-currency swap 8.6 8.6 — — Level 2 Cash flow hedges - variable-to-fixed interest rate swap 36.9 36.9 18.4 18.4 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, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Revolving Credit Facility $ — $ — $ — $ — Level 2 Term Loan A Facility 337.9 323.1 340.0 337.9 Level 2 Term Loan B Facility 1,188.8 1,129.4 1,188.8 1,174.0 Level 2 6.875% Notes due 2028 400.0 388.0 — — Level 2 6.625% Notes due 2022 — — 450.0 455.4 Level 2 6.50% Notes due 2027 500.0 482.5 500.0 516.3 Level 2 6.25% Notes due 2026 400.0 386.0 400.0 409.0 Level 2 6.25% Notes due 2025 700.0 676.6 700.0 716.6 Level 2 |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 8. 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, 2020 2019 2020 2019 (in millions) Service cost $ 0.5 $ 0.4 $ 1.5 $ 1.1 Interest cost 5.4 7.1 16.2 21.3 Expected asset return (9.6) (10.3) (28.9) (30.9) Amortized loss 2.1 1.5 6.4 4.7 Settlement — 0.4 — 0.4 Net periodic benefit credit $ (1.6) $ (0.9) $ (4.8) $ (3.4) Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in millions) Service cost $ 0.1 $ — $ 0.3 $ 0.2 Interest cost 2.6 3.3 7.7 9.7 Amortized loss 0.3 — 0.8 0.1 Amortized prior service credit (0.4) (0.4) (1.2) (1.2) Net periodic benefit cost $ 2.6 $ 2.9 $ 7.6 $ 8.8 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, 2020 and December 31, 2019, we have a noncurrent pension liability of $105.4 million and $118.2 million, respectively. As of September 30, 2020 and December 31, 2019, we have a noncurrent other postretirement benefits liability of $515.7 million and $520.0 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 2020 to be approximately $1.5 million. We expect our cash payments for other postretirement benefit obligations in 2020, net of GM cost sharing, to be approximately $17 million. |
Product Warranties (Notes)
Product Warranties (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Disclosure [Text Block] | 9. 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 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, 2020 2019 2020 2019 (in millions) Beginning balance $ 63.9 $ 55.7 $ 62.0 $ 57.7 Accruals 4.4 5.3 9.2 14.7 Payments (3.8) (0.9) (5.8) (8.2) Adjustment to prior period accruals (0.1) 0.7 (0.6) (3.6) Foreign currency translation 0.2 (0.5) (0.2) (0.3) Ending balance $ 64.6 $ 60.3 $ 64.6 $ 60.3 |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. 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 $22.5 million for the three months ended September 30, 2020, an effective income tax rate of (23.8)%, as compared to a benefit of $40.4 million for the three months ended September 30, 2019, an effective income tax rate of 24.6%. Income tax was a benefit of $63.1 million for the nine months ended September 30, 2020, an effective income tax rate of 9.6%, as compared to a benefit of $37.4 million for the nine months ended September 30, 2019, an effective income tax rate of 55.7%. In accordance with the guidance in ASC 740 - Income Taxes , we review the likelihood that we will realize the benefit of deferred tax assets and estimate whether recoverability of our deferred tax assets is "more likely than not" based on the available evidence. During the previous three month period ended June 30, 2020, we determined that a portion of our deferred tax assets related to U.S. interest expense carryforwards were not more likely than not to be realized and, as such, we recorded a valuation allowance resulting in tax expense of approximately $36.0 million during the second quarter of 2020. As enacted under the TCJA on December 22, 2017, and as amended by the the CARES Act, section 163(j) of the Internal Revenue Code generally limits the deductibility of net business interest expense to 30% (or for certain years as provided under the CARES Act, 50%) of “adjusted taxable income” for taxable years beginning after December 31, 2017. On July 28, 2020, the Internal Revenue Service and the U.S. Department of Treasury issued final regulations (the Final Regulations) and concurrently issued new proposed regulations (the New Proposed Regulations) under section 163(j) that provide a number of important additional changes and clarifications to the Final Regulations. Based upon the Final Regulations and New Proposed Regulations, which were issued during the three months ended September 30, 2020, as well as the amendments to section 163(j) made by the CARES Act, we have determined that our deferred tax assets related to U.S. interest expense carryforwards are more likely than not to be realized and, as such, we have released the valuation allowance recorded during the second quarter of 2020 resulting in approximately $36.0 million of income tax benefit during the three month period ended September 30, 2020. Due to the uncertainty associated with the extent and ultimate impact of COVID-19 on global automotive production volumes, we may experience lower than projected earnings in certain jurisdictions in future periods, and it is reasonably possible that changes in valuation allowances could be recognized in the next twelve months as a result. During the nine months ended September 30, 2020, we finalized an advance pricing agreement in a foreign jurisdiction, which resulted in a tax benefit of approximately $6.8 million, and we recognized a tax benefit of approximately $7.0 million related to our ability to carry back projected current year losses under the CARES Act to years with the previous 35% tax rate. This is in addition to a net tax benefit of approximately $7.5 million that we recognized in the first quarter of 2020 related to our ability to carry back losses from prior years under the CARES Act. See Note 1 - Organization and Basis of Presentation for additional detail regarding the CARES Act. Our effective income tax rates for the three and nine months ended September 30, 2020 vary from our effective income tax rates for the three and nine months ended September 30, 2019, as a result of the items discussed above. Further, our effective income tax rate for the nine months ended September 30, 2020 varies from our effective income tax rate for the nine months ended September 30, 2019 as a result of the impact of the goodwill impairment charge recorded during the first nine months of 2020, which had no corresponding income tax benefit. In addition, in the first nine months of 2019, we recognized an income tax benefit of $9.3 million related to final regulations issued by the Department of Treasury and Internal Revenue Service in the first quarter of 2019. The final regulations changed the manner in which we were required to compute the one-time transition tax under the TCJA that was imposed on certain foreign earnings for which U.S. income tax was previously deferred. For the three and nine months ended September 30, 2020 and 2019, our effective income tax rates vary from the U.S. federal statutory rate primarily due to favorable foreign tax rates, the impact of tax credits, and the effect of the 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 2018. Generally, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2013. In the second quarter of 2020, we finalized an advance pricing agreement in a foreign jurisdiction, which resulted in a cash payment to the tax authorities of $18.5 million and a reduction of our liability for unrecognized tax benefits and related interest and penalties of $25.3 million. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. 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, 2020 2019 2020 2019 (in millions, except per share data) Numerator Net income (loss) attributable to AAM $ 117.2 $ (124.2) $ (597.3) $ (30.1) Less: Net income attributable to participating securities (5.1) — — — Net income (loss) attributable to common shareholders - Basic and Dilutive $ 112.1 $ (124.2) $ (597.3) $ (30.1) Denominators Basic common shares outstanding - Weighted-average shares outstanding 118.4 115.8 117.7 115.6 Less: Participating securities (5.1) (3.3) (4.7) (3.3) Weighted-average common shares outstanding 113.3 112.5 113.0 112.3 Effect of dilutive securities - Dilutive stock-based compensation — — — — Diluted shares outstanding - Adjusted weighted-average shares after assumed conversions 113.3 112.5 113.0 112.3 Basic EPS $ 0.99 $ (1.10) $ (5.28) $ (0.27) Diluted EPS $ 0.99 $ (1.10) $ (5.28) $ (0.27) |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Disclosure of Reclassification Amount [Text Block] | 12. 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, 2020 and September 30, 2019 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at June 30, 2020 $ (256.6) $ (144.9) $ (41.7) $ (443.2) Other comprehensive income (loss) before reclassifications — 14.0 (7.8) 6.2 Income tax effect of other comprehensive income (loss) before reclassifications — — 2.6 2.6 Amounts reclassified from accumulated other comprehensive loss 2.1 (a) — 14.7 (b) 16.8 Income taxes reclassified into net income (0.4) — (2.8) (3.2) Net change in accumulated other comprehensive loss 1.7 14.0 6.7 22.4 Balance at September 30, 2020 $ (254.9) $ (130.9) $ (35.0) $ (420.8) 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) (a) These amounts were reclassified from AOCI to Other income (expense), net for the three months ended September 30, 2020 and September 30, 2019. (b) The amounts reclassified from AOCI included $1.3 million in cost of goods sold (COGS), $4.1 million in interest expense and $9.3 million in Other income (expense), net for the three months ended September 30, 2020 and $(0.9) million in COGS, $1.7 million in interest expense and $(7.6) million in Other income (expense), net for the three months ended September 30, 2019. Reclassification adjustments and other activity impacting accumulated other comprehensive income (loss) during the nine months ended September 30, 2020 and September 30, 2019 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2019 $ (259.9) $ (101.2) $ (15.7) $ (376.8) Other comprehensive income (loss) before reclassifications — (29.7) (42.6) (72.3) Income tax effect of other comprehensive income (loss) before reclassifications — — 5.7 5.7 Amounts reclassified from accumulated other comprehensive loss 6.2 (a) — 21.7 (b) 27.9 Income taxes reclassified into net income (1.2) — (4.1) (5.3) Net change in accumulated other comprehensive loss 5.0 (29.7) (19.3) (44.0) Balance at September 30, 2020 $ (254.9) $ (130.9) $ (35.0) $ (420.8) 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) (c) (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 income (loss) 3.8 (a) — (9.6) (b) (5.8) Income taxes reclassified into net income (0.8) — 1.6 0.8 Net change in accumulated other comprehensive income (loss) (27.2) (34.7) (24.7) (86.6) Balance at September 30, 2019 $ (241.1) $ (131.3) $ (25.8) $ (398.2) (a) These amounts were reclassified from AOCI to Other income (expense), net for the nine months ended September 30, 2020 and September 30, 2019. (b) The amounts reclassified from AOCI included $2.3 million in COGS, $10.1 million in interest expense and $9.3 million in Other income (expense), net for the nine months ended September 30, 2020 and $(1.8) million in COGS, $(0.2) million in interest expense and $(7.6) million in Other income (expense), net for the nine months ended September 30, 2019. (c) 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 13. REVENUE FROM CONTRACTS WITH CUSTOMERS 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, 2020 and 2019. Net sales are attributed to regions based on the location of production. Intersegment sales have been excluded from the table. In the fourth quarter of 2019, we completed the Casting Sale. The Casting Sale did not include the entities that conduct AAM's casting operations in El Carmen, Mexico, which are now included in our Driveline segment. The Casting Sale did not qualify for classification as discontinued operations, as it did not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results. As such, we continue to present Casting as a segment in the table below for the three and nine months ended September 30, 2019, and the reported amounts are now comprised entirely of the U.S. casting operations that were included in the sale. The amounts previously reported in our Casting segment for the retained operations in El Carmen, Mexico have been reclassified to our Driveline segment for the three and nine months ended September 30, 2019. Three Months Ended September 30, 2020 Driveline Metal Forming Casting Total North America $ 870.8 $ 252.1 $ — $ 1,122.9 Asia 116.7 12.2 — 128.9 Europe 94.1 53.4 — 147.5 South America 12.3 2.5 — 14.8 Total $ 1,093.9 $ 320.2 $ — $ 1,414.1 Three Months Ended September 30, 2019 Driveline Metal Forming Casting Total North America $ 917.0 $ 296.9 $ 155.4 $ 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 $ 1,152.4 $ 369.6 $ 155.4 $ 1,677.4 Nine Months Ended September 30, 2020 Driveline Metal Forming Casting Total North America $ 1,922.5 $ 597.4 $ — $ 2,519.9 Asia 307.9 28.3 — 336.2 Europe 239.3 139.1 — 378.4 South America 32.7 5.7 — 38.4 Total $ 2,502.4 $ 770.5 $ — $ 3,272.9 Nine Months Ended September 30, 2019 Driveline Metal Forming Casting Total North America $ 2,688.9 $ 903.7 $ 509.1 $ 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 $ 3,456.7 $ 1,135.1 $ 509.1 $ 5,100.9 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, 2019 $ 815.4 $ 18.9 $ 83.7 September 30, 2020 900.8 22.8 75.6 Increase/(decrease) $ 85.4 $ 3.9 $ (8.1) 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, 2020, we amortized $5.4 million and $17.3 million, respectively, of previously recorded contract liabilities into revenue as we satisfied performance obligations with our customers. |
Segment Reporting (Notes)
Segment Reporting (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 14. SEGMENT REPORTING Our business is organized into Driveline and Metal Forming segments, with each representing a reportable segment under ASC 280 Segment Reporting . In the fourth quarter of 2019, we completed the Casting Sale, which did not include the entities that conduct AAM's casting operations in El Carmen, Mexico, which are now included in our Driveline segment. The Casting Sale did not qualify for classification as discontinued operations, as it did not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results. As such, we continue to present Casting as a segment in the table below for the three and nine months ended September 30, 2019, and the reported amounts are now comprised entirely of the U.S. casting operations that were included in the sale. The amounts previously reported in our Casting segment for the retained operations in El Carmen, Mexico have been reclassified to our Driveline segment for the three and nine months ended September 30, 2019. 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, sport utility vehicles (SUVs), crossover vehicles, passenger cars and commercial vehicles; and • 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. 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 (loss) on the sale of a business, impairment charges, pension settlements and non-recurring items. The following tables represent information by reportable segment for the three months ended September 30, 2020 and 2019 (in millions) : Three Months Ended September 30, 2020 Driveline Metal Forming Casting Total Sales $ 1,094.5 $ 433.2 $ — $ 1,527.7 Less: intersegment sales 0.6 113.0 — 113.6 Net external sales $ 1,093.9 $ 320.2 $ — $ 1,414.1 Segment Adjusted EBITDA $ 207.4 $ 89.7 $ — $ 297.1 Three Months Ended September 30, 2019 Driveline Metal Forming Casting Total Sales $ 1,186.8 $ 476.6 $ 168.4 $ 1,831.8 Less: intersegment sales 34.4 107.0 13.0 154.4 Net external sales $ 1,152.4 $ 369.6 $ 155.4 $ 1,677.4 Segment Adjusted EBITDA $ 181.0 $ 79.3 $ 5.5 $ 265.8 The following tables represent information by reportable segment for the nine months ended September 30, 2020 and 2019 (in millions) : Nine Months Ended September 30, 2020 Driveline Metal Forming Casting Total Sales $ 2,529.9 $ 1,005.8 $ — $ 3,535.7 Less: intersegment sales 27.5 235.3 — 262.8 Net external sales $ 2,502.4 $ 770.5 $ — $ 3,272.9 Segment Adjusted EBITDA $ 315.5 $ 142.8 $ — $ 458.3 Nine Months Ended September 30, 2019 Driveline Metal Forming Casting Total Sales $ 3,534.6 $ 1,444.1 $ 541.6 $ 5,520.3 Less: intersegment sales 77.9 309.0 32.5 419.4 Net external sales $ 3,456.7 $ 1,135.1 $ 509.1 $ 5,100.9 Segment Adjusted EBITDA $ 485.9 $ 250.2 $ 40.7 $ 776.8 The following table represents a reconciliation of Total Segment Adjusted EBITDA to consolidated income (loss) before income taxes for the three and nine months ended September 30, 2020 and 2019 (in millions) : Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total segment adjusted EBITDA $ 297.1 $ 265.8 $ 458.3 $ 776.8 Interest expense (53.9) (54.3) (160.0) (163.9) Depreciation and amortization (125.0) (134.2) (393.7) (411.5) Restructuring and acquisition-related costs (9.7) (11.7) (38.6) (36.0) Loss on sale of business — — (1.0) — Debt refinancing and redemption costs (5.2) (5.1) (6.7) (7.5) Impairment charges — (225.0) (510.0) (225.0) Non-recurring items: Malvern Fire charges, net of recoveries (8.6) — (8.6) — Income (loss) before income taxes $ 94.7 $ (164.5) $ (660.3) $ (67.1) |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 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. These estimates and assumptions are impacted by risks and uncertainties, including those associated with the Novel Coronavirus (COVID-19) pandemic that began in the first quarter of 2020. While we have made estimates and assumptions based on the facts and circumstances available as of the date of this report, the full impact of COVID-19 cannot be predicted, and actual results could differ materially from those estimates and assumptions. 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, 2019. |
New Accounting Pronouncements and Other Regulatory Pronouncements, Policy [Policy Text Block] | Effect of New Accounting Standards and Other Regulatory Pronouncements Accounting Standard Update 2020-04 On March 12, 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2020-04 - Reference Rate Reform (Topic 848) . This guidance provides optional expedients and exceptions that are intended to ease the burden of updating contracts to contain a new reference rate due to the discontinuation of the London Inter-Bank Offered Rate (LIBOR). This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. We are currently assessing which of our various contracts will require an update for a new reference rate and will determine the timing for our implementation of this guidance at the completion of that analysis. Accounting Standard Update 2019-12 On December 18, 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740) . This guidance is intended to simplify the accounting and disclosure requirements for income taxes by removing various exceptions and requires that the effect of an enacted change in tax laws or rates be included in the annual effective tax rate computation in the interim period of the enactment. This guidance becomes effective at the beginning of our 2021 fiscal year. We expect to adopt this guidance on January 1, 2021 and we do not expect that this standard will have a material impact on our consolidated financial statements. Accounting Standards Update 2016-13 On June 16, 2016, the FASB issued 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 replaces the incurred loss model under previous guidance, and requires entities to consider expected credit losses, in addition to past events and current conditions when measuring credit losses. This guidance applies to certain of our financial instruments and is primarily applicable to our trade accounts receivable. We adopted this guidance on January 1, 2020, using a modified-retrospective transition method and the adoption of this standard did not have a material impact on our condensed consolidated financial statements. See the Statement of Stockholders' Equity for the implementation impact of ASU 2016-13. Securities and Exchange Commission (SEC) Rule In the first quarter of 2020, the SEC adopted "Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant's Securities," a rule that amends the financial disclosure requirements for guarantors and issuers of registered guaranteed securities. This rule eliminates the previous requirement to present guarantor financial statement information in the notes to the financial statements and allows for the disclosure of summarized financial information for the most recent year and interim period, as well as expanded non-financial disclosures, in Management's Discussion and Analysis (MD&A). The effective date for this rule is January 4, 2021, however, the SEC permitted voluntary compliance prior to this date and we elected to adopt the new disclosure requirements in the first quarter of 2020. As such, we no longer present guarantor financial statement information in the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q, but instead present the required information within MD&A. Coronavirus Aid, Relief, and Economic Security Act The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was enacted on March 27, 2020 in the United States. The key provisions of the CARES Act, as applicable to AAM, include the following: • The ability to use net operating losses (NOLs) to offset income without the 80% taxable income limitation enacted as part of the Tax Cuts and Jobs Act (TCJA) of 2017, and to carry back NOLs to offset prior year income for five years. These are temporary provisions that apply to NOLs incurred in 2018, 2019 or 2020 tax years. • The ability to claim a current deduction for interest expense up to 50% of Adjusted Taxable Income (ATI) for tax years 2019 and 2020. This limitation was previously 30% of ATI pursuant to the TCJA, and will revert to 30% after 2020. • The ability to defer the payment of the employer portion of social security taxes incurred between March 27, 2020 and December 31, 2020, with 50% of the deferred amount to be paid by December 31, 2021 and the remaining 50% to be paid by December 31, 2022. • The ability to claim an Employee Retention Credit (ERC), which is a refundable payroll tax credit, for 50% of qualified wages or benefits, subject to certain limitations, that are paid to an employee when they are not providing services due to COVID-19. The ERC applies to qualified wages paid or incurred during the period March 13, 2020 through December 31, 2020 and is available to eligible employers whose operations were fully or partially suspended due to COVID-19, or whose gross receipts declined by more than 50% when compared to the applicable period in the prior year. |
Restructuring and Acquisition_2
Restructuring and Acquisition-Related Costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | A summary of our restructuring activity for the first nine months of 2020 and 2019 is shown below: Severance Charges Implementation Costs Total (in millions) 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 Accrual at December 31, 2019 $ 4.8 $ 7.4 $ 12.2 Charges 19.9 11.9 31.8 Cash utilization (19.9) (11.0) (30.9) Accrual at September 30, 2020 $ 4.8 $ 8.3 $ 13.1 |
Business Combination, Separately Recognized Transactions [Table Text Block] | During the nine months ended September 30, 2020 and 2019, we incurred the following integration charges primarily related to the integration of MPG: Integration Expenses (in millions) Charges for the nine months ended September 30, 2020 $ 6.8 Charges for the nine months ended September 30, 2019 12.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020: Driveline Metal Forming Consolidated (in millions) Balance at December 31, 2019 $ 398.3 $ 300.8 $ 699.1 Impairment charge (210.8) (299.2) (510.0) Foreign currency translation (3.9) (1.6) (5.5) Balance at September 30, 2020 $ 183.6 $ — $ 183.6 |
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, 2020 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Capitalized computer software $ 47.2 $ (32.3) $ 14.9 $ 45.8 $ (27.6) $ 18.2 Customer platforms 856.2 (222.0) 634.2 856.2 (174.4) 681.8 Customer relationships 53.0 (12.0) 41.0 53.0 (9.4) 43.6 Technology and other 156.1 (44.7) 111.4 156.0 (35.1) 120.9 Total $ 1,112.5 $ (311.0) $ 801.5 $ 1,111.0 $ (246.5) $ 864.5 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: September 30, 2020 December 31, 2019 (in millions) Raw materials and work-in-progress $ 281.0 $ 310.4 Finished goods 62.2 83.7 Gross inventories 343.2 394.1 Inventory valuation reserves (27.4) (20.5) Inventories, net $ 315.8 $ 373.6 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: September 30, 2020 December 31, 2019 (in millions) Revolving Credit Facility $ — $ — Term Loan A Facility 337.9 340.0 Term Loan B Facility 1,188.8 1,188.8 6.875% Notes due 2028 400.0 — 6.625% Notes due 2022 — 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 104.5 113.4 Total debt 3,631.2 3,692.2 Less: Current portion of long-term debt 26.5 28.7 Long-term debt 3,604.7 3,663.5 Less: Debt issuance costs 49.3 51.2 Long-term debt, net $ 3,555.4 $ 3,612.3 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 2020 2019 2020 2019 2020 Next 12 Months (in millions) Currency forward contracts Cost of Goods Sold $ (1.3) $ 0.9 $ (2.3) $ 1.8 $ 2,926.7 $ (2.6) Fixed-to-fixed cross-currency swap Other Income (Expense), net (9.3) 7.6 (9.3) 7.6 (3.8) 1.7 Variable-to-fixed interest rate swap Interest Expense (4.1) (1.7) (10.1) 0.2 (160.0) (15.9) See Note 12 - 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, 2020 and 2019. 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 2020 2019 2020 2019 2020 (in millions) Currency forward contracts Cost of Goods Sold $ 0.9 $ (0.5) $ (6.7) $ 1.3 $ 2,926.7 Currency forward contracts Other Income (Expense), net — 0.1 (0.5) (0.5) (3.8) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Balance Sheet Classification Cash equivalents $ 216.0 $ 216.0 $ 271.3 $ 271.3 Level 1 Prepaid expenses and other Cash flow hedges - currency forward contracts 0.5 0.5 5.0 5.0 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 5.6 5.6 0.9 0.9 Level 2 Nondesignated - currency forward contracts — — 1.9 1.9 Level 2 Other assets and deferred charges Cash flow hedges - currency forward contracts 0.7 0.7 3.4 3.4 Level 2 Cash flow hedges - fixed-to-fixed cross-currency swap — — 1.1 1.1 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 10.5 10.5 2.2 2.2 Level 2 Accrued expenses and other Cash flow hedges - currency forward contracts 3.1 3.1 — — Level 2 Cash flow hedges - variable-to-fixed interest rate swap 19.1 19.1 7.9 7.9 Level 2 Nondesignated - currency forward contracts 0.1 0.1 — — Level 2 Postretirement benefits and other long-term liabilities Cash flow hedges - currency forward contracts 2.9 2.9 — — Level 2 Cash flow hedges - fixed-to-fixed cross-currency swap 8.6 8.6 — — Level 2 Cash flow hedges - variable-to-fixed interest rate swap 36.9 36.9 18.4 18.4 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, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Revolving Credit Facility $ — $ — $ — $ — Level 2 Term Loan A Facility 337.9 323.1 340.0 337.9 Level 2 Term Loan B Facility 1,188.8 1,129.4 1,188.8 1,174.0 Level 2 6.875% Notes due 2028 400.0 388.0 — — Level 2 6.625% Notes due 2022 — — 450.0 455.4 Level 2 6.50% Notes due 2027 500.0 482.5 500.0 516.3 Level 2 6.25% Notes due 2026 400.0 386.0 400.0 409.0 Level 2 6.25% Notes due 2025 700.0 676.6 700.0 716.6 Level 2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 (in millions) Service cost $ 0.5 $ 0.4 $ 1.5 $ 1.1 Interest cost 5.4 7.1 16.2 21.3 Expected asset return (9.6) (10.3) (28.9) (30.9) Amortized loss 2.1 1.5 6.4 4.7 Settlement — 0.4 — 0.4 Net periodic benefit credit $ (1.6) $ (0.9) $ (4.8) $ (3.4) Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in millions) Service cost $ 0.1 $ — $ 0.3 $ 0.2 Interest cost 2.6 3.3 7.7 9.7 Amortized loss 0.3 — 0.8 0.1 Amortized prior service credit (0.4) (0.4) (1.2) (1.2) Net periodic benefit cost $ 2.6 $ 2.9 $ 7.6 $ 8.8 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 (in millions) Beginning balance $ 63.9 $ 55.7 $ 62.0 $ 57.7 Accruals 4.4 5.3 9.2 14.7 Payments (3.8) (0.9) (5.8) (8.2) Adjustment to prior period accruals (0.1) 0.7 (0.6) (3.6) Foreign currency translation 0.2 (0.5) (0.2) (0.3) Ending balance $ 64.6 $ 60.3 $ 64.6 $ 60.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 (in millions, except per share data) Numerator Net income (loss) attributable to AAM $ 117.2 $ (124.2) $ (597.3) $ (30.1) Less: Net income attributable to participating securities (5.1) — — — Net income (loss) attributable to common shareholders - Basic and Dilutive $ 112.1 $ (124.2) $ (597.3) $ (30.1) Denominators Basic common shares outstanding - Weighted-average shares outstanding 118.4 115.8 117.7 115.6 Less: Participating securities (5.1) (3.3) (4.7) (3.3) Weighted-average common shares outstanding 113.3 112.5 113.0 112.3 Effect of dilutive securities - Dilutive stock-based compensation — — — — Diluted shares outstanding - Adjusted weighted-average shares after assumed conversions 113.3 112.5 113.0 112.3 Basic EPS $ 0.99 $ (1.10) $ (5.28) $ (0.27) Diluted EPS $ 0.99 $ (1.10) $ (5.28) $ (0.27) |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and September 30, 2019 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at June 30, 2020 $ (256.6) $ (144.9) $ (41.7) $ (443.2) Other comprehensive income (loss) before reclassifications — 14.0 (7.8) 6.2 Income tax effect of other comprehensive income (loss) before reclassifications — — 2.6 2.6 Amounts reclassified from accumulated other comprehensive loss 2.1 (a) — 14.7 (b) 16.8 Income taxes reclassified into net income (0.4) — (2.8) (3.2) Net change in accumulated other comprehensive loss 1.7 14.0 6.7 22.4 Balance at September 30, 2020 $ (254.9) $ (130.9) $ (35.0) $ (420.8) 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) (a) These amounts were reclassified from AOCI to Other income (expense), net for the three months ended September 30, 2020 and September 30, 2019. (b) The amounts reclassified from AOCI included $1.3 million in cost of goods sold (COGS), $4.1 million in interest expense and $9.3 million in Other income (expense), net for the three months ended September 30, 2020 and $(0.9) million in COGS, $1.7 million in interest expense and $(7.6) million in Other income (expense), net for the three months ended September 30, 2019. Reclassification adjustments and other activity impacting accumulated other comprehensive income (loss) during the nine months ended September 30, 2020 and September 30, 2019 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2019 $ (259.9) $ (101.2) $ (15.7) $ (376.8) Other comprehensive income (loss) before reclassifications — (29.7) (42.6) (72.3) Income tax effect of other comprehensive income (loss) before reclassifications — — 5.7 5.7 Amounts reclassified from accumulated other comprehensive loss 6.2 (a) — 21.7 (b) 27.9 Income taxes reclassified into net income (1.2) — (4.1) (5.3) Net change in accumulated other comprehensive loss 5.0 (29.7) (19.3) (44.0) Balance at September 30, 2020 $ (254.9) $ (130.9) $ (35.0) $ (420.8) 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) (c) (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 income (loss) 3.8 (a) — (9.6) (b) (5.8) Income taxes reclassified into net income (0.8) — 1.6 0.8 Net change in accumulated other comprehensive income (loss) (27.2) (34.7) (24.7) (86.6) Balance at September 30, 2019 $ (241.1) $ (131.3) $ (25.8) $ (398.2) (a) These amounts were reclassified from AOCI to Other income (expense), net for the nine months ended September 30, 2020 and September 30, 2019. (b) The amounts reclassified from AOCI included $2.3 million in COGS, $10.1 million in interest expense and $9.3 million in Other income (expense), net for the nine months ended September 30, 2020 and $(1.8) million in COGS, $(0.2) million in interest expense and $(7.6) million in Other income (expense), net for the nine months ended September 30, 2019. (c) 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. |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contracts with Customers | 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, 2020 and 2019. Net sales are attributed to regions based on the location of production. Intersegment sales have been excluded from the table. In the fourth quarter of 2019, we completed the Casting Sale. The Casting Sale did not include the entities that conduct AAM's casting operations in El Carmen, Mexico, which are now included in our Driveline segment. The Casting Sale did not qualify for classification as discontinued operations, as it did not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results. As such, we continue to present Casting as a segment in the table below for the three and nine months ended September 30, 2019, and the reported amounts are now comprised entirely of the U.S. casting operations that were included in the sale. The amounts previously reported in our Casting segment for the retained operations in El Carmen, Mexico have been reclassified to our Driveline segment for the three and nine months ended September 30, 2019. Three Months Ended September 30, 2020 Driveline Metal Forming Casting Total North America $ 870.8 $ 252.1 $ — $ 1,122.9 Asia 116.7 12.2 — 128.9 Europe 94.1 53.4 — 147.5 South America 12.3 2.5 — 14.8 Total $ 1,093.9 $ 320.2 $ — $ 1,414.1 Three Months Ended September 30, 2019 Driveline Metal Forming Casting Total North America $ 917.0 $ 296.9 $ 155.4 $ 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 $ 1,152.4 $ 369.6 $ 155.4 $ 1,677.4 Nine Months Ended September 30, 2020 Driveline Metal Forming Casting Total North America $ 1,922.5 $ 597.4 $ — $ 2,519.9 Asia 307.9 28.3 — 336.2 Europe 239.3 139.1 — 378.4 South America 32.7 5.7 — 38.4 Total $ 2,502.4 $ 770.5 $ — $ 3,272.9 Nine Months Ended September 30, 2019 Driveline Metal Forming Casting Total North America $ 2,688.9 $ 903.7 $ 509.1 $ 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 $ 3,456.7 $ 1,135.1 $ 509.1 $ 5,100.9 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, 2019 $ 815.4 $ 18.9 $ 83.7 September 30, 2020 900.8 22.8 75.6 Increase/(decrease) $ 85.4 $ 3.9 $ (8.1) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019 (in millions) : Three Months Ended September 30, 2020 Driveline Metal Forming Casting Total Sales $ 1,094.5 $ 433.2 $ — $ 1,527.7 Less: intersegment sales 0.6 113.0 — 113.6 Net external sales $ 1,093.9 $ 320.2 $ — $ 1,414.1 Segment Adjusted EBITDA $ 207.4 $ 89.7 $ — $ 297.1 Three Months Ended September 30, 2019 Driveline Metal Forming Casting Total Sales $ 1,186.8 $ 476.6 $ 168.4 $ 1,831.8 Less: intersegment sales 34.4 107.0 13.0 154.4 Net external sales $ 1,152.4 $ 369.6 $ 155.4 $ 1,677.4 Segment Adjusted EBITDA $ 181.0 $ 79.3 $ 5.5 $ 265.8 The following tables represent information by reportable segment for the nine months ended September 30, 2020 and 2019 (in millions) : Nine Months Ended September 30, 2020 Driveline Metal Forming Casting Total Sales $ 2,529.9 $ 1,005.8 $ — $ 3,535.7 Less: intersegment sales 27.5 235.3 — 262.8 Net external sales $ 2,502.4 $ 770.5 $ — $ 3,272.9 Segment Adjusted EBITDA $ 315.5 $ 142.8 $ — $ 458.3 Nine Months Ended September 30, 2019 Driveline Metal Forming Casting Total Sales $ 3,534.6 $ 1,444.1 $ 541.6 $ 5,520.3 Less: intersegment sales 77.9 309.0 32.5 419.4 Net external sales $ 3,456.7 $ 1,135.1 $ 509.1 $ 5,100.9 Segment Adjusted EBITDA $ 485.9 $ 250.2 $ 40.7 $ 776.8 |
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 (loss) before income taxes for the three and nine months ended September 30, 2020 and 2019 (in millions) : Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total segment adjusted EBITDA $ 297.1 $ 265.8 $ 458.3 $ 776.8 Interest expense (53.9) (54.3) (160.0) (163.9) Depreciation and amortization (125.0) (134.2) (393.7) (411.5) Restructuring and acquisition-related costs (9.7) (11.7) (38.6) (36.0) Loss on sale of business — — (1.0) — Debt refinancing and redemption costs (5.2) (5.1) (6.7) (7.5) Impairment charges — (225.0) (510.0) (225.0) Non-recurring items: Malvern Fire charges, net of recoveries (8.6) — (8.6) — Income (loss) before income taxes $ 94.7 $ (164.5) $ (660.3) $ (67.1) |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)EmployeesCountriesFacilities | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)EmployeesCountriesFacilities | Sep. 30, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Entity Number of Employees | Employees | 20,000 | 20,000 | ||
Number of Facilities | Facilities | 80 | 80 | ||
Number of Countries in which Entity Operates | Countries | 17 | 17 | ||
Insurance Deductible Expense | $ 1 | |||
Tangible Asset Impairment Charges | 28.4 | |||
Loss Contingency, Receivable | 19.8 | $ 19.8 | ||
Gain Loss on Insurance Proceeds Related To Property Damage | $ 8.6 | $ 0 | $ 8.6 | $ 0 |
Impairment of Long-Lived Assets to be Disposed of | $ 225 |
Restructuring and Acquisition_3
Restructuring and Acquisition-Related Costs (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve | $ 12.2 | $ 4 |
Charges | 31.8 | 23.5 |
Cash utilization | (30.9) | (21.6) |
Restructuring reserve | 13.1 | 5.9 |
Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve | 4.8 | 2.4 |
Charges | 19.9 | 10.4 |
Cash utilization | (19.9) | (11.7) |
Restructuring reserve | 4.8 | 1.1 |
Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve | 7.4 | 1.6 |
Charges | 11.9 | 13.1 |
Cash utilization | (11) | (9.9) |
Restructuring reserve | $ 8.3 | $ 4.8 |
Restructuring Reserve Narrative
Restructuring Reserve Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 31.8 | $ 23.5 | |
Minimum [Member] | Forecast [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 70 | ||
Maximum [Member] | Forecast [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 80 | ||
Driveline [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 14.4 | 2 | |
Metal Forming [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 13.1 | 14.4 | |
Casting [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0.7 | ||
2020 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 22.9 | ||
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 19.9 | 10.4 | |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 11.9 | $ 13.1 |
Business Combinations, Separate
Business Combinations, Separately Recognized Transactions Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Integration expenses | $ 6.8 | $ 12.5 | ||
Restructuring and acquisition-related costs | $ 9.7 | $ 11.7 | $ 38.6 | $ 36 |
Goodwill Rollforward (Details)
Goodwill Rollforward (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 699.1 |
Goodwill impairment charge | (510) |
Foreign currency translation | (5.5) |
Goodwill | 183.6 |
Driveline [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 398.3 |
Goodwill impairment charge | (210.8) |
Foreign currency translation | (3.9) |
Goodwill | 183.6 |
Metal Forming [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 300.8 |
Goodwill impairment charge | (299.2) |
Foreign currency translation | (1.6) |
Goodwill | $ 0 |
Goodwill Narrative (Details)
Goodwill Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill impairment charge | $ 510 |
Goodwill, Impaired, Facts and Circumstances Leading to Impairment | These impairment charges were primarily the result of a decline in the projected cash flows of these reporting units under our revised long-range plan completed in the first quarter of 2020. The revision to our long-range plan was driven by lower forecasted sales volumes in the internal and external data sources used to form our projections primarily due to the reduction in global automotive production volumes caused by the impact of COVID-19. The impairment charges were also the result of changes in certain market-related inputs to the analysis to reflect macro-economic changes caused by the impact of COVID-19, including increased discount rates and lower pricing multiples for comparable public companies. |
Goodwill, Impaired, Accumulated Impairment Loss | $ 1,435.5 |
Driveline [Member] | |
Goodwill [Line Items] | |
Goodwill impairment charge | 210.8 |
Metal Forming [Member] | |
Goodwill [Line Items] | |
Goodwill impairment charge | $ 299.2 |
Intangible Assets Table (Detail
Intangible Assets Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 1,112.5 | $ 1,112.5 | $ 1,111 | ||
Accumulated Amortization | (311) | (311) | (246.5) | ||
Net Carrying Amount | 801.5 | 801.5 | 864.5 | ||
Amortization of intangible assets | 21.6 | $ 23.7 | 65 | $ 73.6 | |
Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Amortization Expense, Current Fiscal Year | 80 | 80 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 80 | 80 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 80 | 80 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 80 | 80 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 80 | 80 | |||
Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Amortization Expense, Current Fiscal Year | 85 | 85 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 85 | 85 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 85 | 85 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 85 | 85 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 85 | 85 | |||
Computer Software, Intangible Asset [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 47.2 | 47.2 | 45.8 | ||
Accumulated Amortization | (32.3) | (32.3) | (27.6) | ||
Net Carrying Amount | 14.9 | 14.9 | 18.2 | ||
Customer Platforms - Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 856.2 | 856.2 | 856.2 | ||
Accumulated Amortization | (222) | (222) | (174.4) | ||
Net Carrying Amount | 634.2 | 634.2 | 681.8 | ||
Customer Relationships - Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 53 | 53 | 53 | ||
Accumulated Amortization | (12) | (12) | (9.4) | ||
Net Carrying Amount | 41 | 41 | 43.6 | ||
Technology-Based Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 156.1 | 156.1 | 156 | ||
Accumulated Amortization | (44.7) | (44.7) | (35.1) | ||
Net Carrying Amount | $ 111.4 | $ 111.4 | $ 120.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials and work-in-progress | $ 281 | $ 310.4 |
Finished goods | 62.2 | 83.7 |
Gross inventories | 343.2 | 394.1 |
Inventory valuation reserves | (27.4) | (20.5) |
Inventories, net | $ 315.8 | $ 373.6 |
Schedule of Long-Term Debt (Det
Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jul. 29, 2019 |
Debt Instrument [Line Items] | ||||
Foreign credit facilities and other | $ 104.5 | $ 113.4 | ||
Total debt | 3,631.2 | 3,692.2 | ||
Current portion of long-term debt | 26.5 | 28.7 | ||
Long-term debt | 3,604.7 | 3,663.5 | ||
Long-term debt, net | 3,555.4 | 3,612.3 | ||
Total Debt Instruments excluding Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs | 49.3 | 51.2 | ||
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 | 337.9 | 340 | $ 340 | |
Secured Debt [Member] | Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 1,188.8 | 1,188.8 | ||
Unsecured Debt [Member] | 6.875% Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 400 | $ 400 | 0 | |
Unsecured Debt [Member] | 6.625% Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 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 |
Senior Secured Credit Facilitie
Senior Secured Credit Facilities Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Jul. 29, 2019 | Apr. 06, 2017 | |
Debt Instrument [Line Items] | |||||
Payments of Debt Issuance Costs | $ 11 | $ 3.3 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 925 | $ 932 | |||
Second Amendment to the Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments of Debt Issuance Costs | 4.6 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 891.4 | ||||
Line of Credit Facility, Standby Letters of Credit Issued Against the Facility | 33.6 | ||||
Secured Debt [Member] | Term Loan B [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 1,188.8 | $ 1,188.8 | |||
Secured Debt [Member] | Term Loan A Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 337.9 | $ 340 | $ 340 | ||
AAM Inc. [Member] | Term Loan A [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 100 | ||||
AAM Inc. [Member] | Term Loan B [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 1,550 | ||||
AAM Inc. [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 932 |
Other Debt Disclosures Narrativ
Other Debt Disclosures Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Payments of Debt Issuance Costs | $ 11 | $ 3.3 | ||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.70% | 5.70% | 5.80% | |||
6.875% Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | 6.875% | ||||
6.625% Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | 6.625% | |||
Unsecured Debt [Member] | 6.875% Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 400 | $ 400 | $ 400 | $ 0 | ||
Payments of Debt Issuance Costs | 6.4 | |||||
Unsecured Debt [Member] | 6.625% Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 0 | 0 | 450 | |||
Debt Instrument, Repurchase Amount | 350 | $ 100 | 350 | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 5.7 | 2 | ||||
Write off of Deferred Debt Issuance Cost | 1.3 | 0.4 | ||||
Redemption Premium | 3.9 | $ 1.1 | ||||
Foreign Credit Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | 104.5 | 104.5 | $ 106 | |||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 54.7 | $ 54.7 |
Derivatives Narrative (Details)
Derivatives Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 09, 2020 |
Foreign Currency Forward & Foreign Currency Option Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 155.8 | |
Currency Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 234.4 | |
Fair value asset at date of dedesignation | $ 9.8 | |
Interest Rate Swap [Member] | Debt [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cost of goods sold | $ 1,164.3 | $ 1,428.7 | $ 2,926.7 | $ 4,381.7 | |
Other income (expense), net | (1.6) | (2.9) | (3.8) | (9) | |
Interest expense | (53.9) | (54.3) | $ (160) | (163.9) | |
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 | 0.9 | (0.5) | $ (6.7) | 1.3 | |
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 | (1.3) | 0.9 | $ (2.3) | 1.8 | |
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 | $ (2.6) | ||||
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 | 0.1 | $ (0.5) | (0.5) | |
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 | (9.3) | 7.6 | $ (9.3) | 7.6 | |
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 | 1.7 | ||||
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 | $ (4.1) | $ (1.7) | $ (10.1) | $ 0.2 | |
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 | $ (15.9) |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
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 | $ 216 | $ 271.3 |
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 | 216 | 271.3 |
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 | 0.5 | 5 |
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 | 0.5 | 5 |
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 | 0.7 | 3.4 |
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 | 0.7 | 3.4 |
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 | 3.1 | 0 |
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 | 3.1 | 0 |
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 | 2.9 | 0 |
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 | 2.9 | 0 |
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 | 1.9 |
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 | 1.9 |
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 | 0.1 | 0 |
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 | 0.1 | 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 | 5.6 | 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 | 5.6 | 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 | 10.5 | 2.2 |
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 | 10.5 | 2.2 |
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 | 19.1 | 7.9 |
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 | 19.1 | 7.9 |
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 | 36.9 | 18.4 |
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 | 36.9 | 18.4 |
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 | 0 | 1.1 |
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 | 0 | 1.1 |
Currency 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] | ||
Foreign Currency Contract, Liabilities, Fair Value Disclosure | 8.6 | 0 |
Currency 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] | ||
Foreign Currency Contract, Liabilities, Fair Value Disclosure | $ 8.6 | $ 0 |
Fair Value of Debt (Details)
Fair Value of Debt (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 337.9 | 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 | 323.1 | 337.9 |
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 | 1,188.8 | 1,188.8 |
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 | 1,129.4 | 1,174 |
6.875% 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 | 400 | 0 |
6.875% 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 | 388 | 0 |
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 | 0 | 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 | 0 | 455.4 |
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 | 482.5 | 516.3 |
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 | 386 | 409 |
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 | $ 676.6 | $ 716.6 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0.5 | $ 0.4 | $ 1.5 | $ 1.1 |
Interest cost | 5.4 | 7.1 | 16.2 | 21.3 |
Expected asset return | (9.6) | (10.3) | (28.9) | (30.9) |
Amortized loss | 2.1 | 1.5 | 6.4 | 4.7 |
Settlement | 0 | 0.4 | 0 | 0.4 |
Net periodic benefit credit | (1.6) | (0.9) | (4.8) | (3.4) |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0.1 | 0 | 0.3 | 0.2 |
Interest cost | 2.6 | 3.3 | 7.7 | 9.7 |
Amortized loss | 0.3 | 0 | 0.8 | 0.1 |
Amortized prior service credit | (0.4) | (0.4) | (1.2) | (1.2) |
Net periodic benefit cost | $ 2.6 | $ 2.9 | $ 7.6 | $ 8.8 |
Employee Benefit Plans and Othe
Employee Benefit Plans and Other Postretirement Benefit Plans Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Liability, Defined Benefit Pension Plan, Noncurrent | $ 105.4 | $ 118.2 |
Liability, Other Postretirement Defined Benefit Plan, Noncurrent | 515.7 | $ 520 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 1.5 | |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 17 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Product Warranty Rollforward | ||||
Beginning balance | $ 63.9 | $ 55.7 | $ 62 | $ 57.7 |
Accruals | 4.4 | 5.3 | 9.2 | 14.7 |
Payments | (3.8) | (0.9) | (5.8) | (8.2) |
Adjustment to prior period accruals | (0.1) | 0.7 | (0.6) | (3.6) |
Foreign currency translation | 0.2 | (0.5) | (0.2) | (0.3) |
Ending balance | $ 64.6 | $ 60.3 | $ 64.6 | $ 60.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income tax benefit | $ (22.5) | $ (40.4) | $ (63.1) | $ (37.4) | |||
Effective income tax rate, continuing operations | (23.80%) | 24.60% | 9.60% | 55.70% | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ 18.5 | ||||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 25.3 | ||||||
Unrecognized tax benefit liability, including penalties and accrued interest | $ 23.3 | $ 23.3 | $ 52.6 | ||||
Settlement with Taxing Authority [Member] | |||||||
Other Tax Expense (Benefit) | (6.8) | ||||||
CARES Act [Member] | |||||||
Other Tax Expense (Benefit) | $ (7.5) | $ (7) | |||||
Transition Tax [Member] | |||||||
Other Tax Expense (Benefit) | $ (9.3) | ||||||
UNITED STATES | |||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (36) | $ 36 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator | ||||
Net income (loss) attributable to AAM | $ 117.2 | $ (124.2) | $ (597.3) | $ (30.1) |
Less: Net income attributable to participating securities | (5.1) | 0 | 0 | 0 |
Net income (loss) attributable to common shareholders - Basic and Dilutive | $ 112.1 | $ (124.2) | $ (597.3) | $ (30.1) |
Denominators | ||||
Basic - Weighted-average shares outstanding | 118.4 | 115.8 | 117.7 | 115.6 |
Basic - Less: Participating securities | (5.1) | (3.3) | (4.7) | (3.3) |
Basic - Weighted-average common shares outstanding | 113.3 | 112.5 | 113 | 112.3 |
Effect of dilutive securities - dilutive stock-based compensation | 0 | 0 | 0 | 0 |
Diluted - Adjusted weighted-average shares after assumed conversions | 113.3 | 112.5 | 113 | 112.3 |
Basic EPS | $ 0.99 | $ (1.10) | $ (5.28) | $ (0.27) |
Diluted EPS | $ 0.99 | $ (1.10) | $ (5.28) | $ (0.27) |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Other comprehensive income (loss), derivatives qualifying as hedges, tax | $ (0.2) | $ 1.1 | $ 1.6 | $ 7.3 | |||||
Defined benefit plans, net current period other comprehensive income (loss) | [1] | 1.7 | (1.3) | 5 | 0.5 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 14 | (37.1) | (30) | (34.7) | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | [2] | 6.7 | (6.4) | (19.3) | (24.7) | ||||
Other comprehensive income (loss) | 22.4 | (44.8) | (44.3) | (58.9) | |||||
Accounting Standard Update 2018-02 [Member] | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
New accounting pronouncement, effect of adoption | 27.7 | ||||||||
Cost of Sales [Member] | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 1.3 | (0.9) | 2.3 | (1.8) | |||||
Interest Expense [Member] | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 4.1 | 1.7 | 10.1 | (0.2) | |||||
Other Income [Member] | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 9.3 | (7.6) | 9.3 | (7.6) | |||||
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 | (256.6) | (239.8) | (259.9) | (213.9) | |||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 0 | (2.9) | 0 | (30.8) | [3] | ||||
Income tax effect of other comprehensive income (loss) before reclassifications | 0 | 0.6 | 0 | 0.6 | |||||
Defined benefit plans, amounts reclassified from accumulated other comprehensive income (loss) | 2.1 | [4] | 1.3 | [4] | 6.2 | [5] | 3.8 | [5] | |
Income taxes reclassified into net income | (0.4) | (0.3) | (1.2) | (0.8) | |||||
Defined benefit plans, net current period other comprehensive income (loss) | 1.7 | (1.3) | 5 | (27.2) | |||||
Accumulated other comprehensive income (loss), net of tax - Ending balance | (254.9) | (241.1) | (254.9) | (241.1) | |||||
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 | (144.9) | (94.2) | (101.2) | (96.6) | |||||
Foreign currency translation adjustments, other comprehensive income (loss) arising during period | 14 | (37.1) | (29.7) | (34.7) | |||||
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 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | 0 | 0 | 0 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 14 | (37.1) | (29.7) | (34.7) | |||||
Accumulated other comprehensive income (loss), net of tax - Ending balance | (130.9) | (131.3) | (130.9) | (131.3) | |||||
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 | (41.7) | (19.4) | (15.7) | (1.1) | |||||
Unrecognized gain (loss) on cash flow hedges, other comprehensive income (loss) arising during period | (7.8) | (0.7) | (42.6) | (22.4) | |||||
Other comprehensive income (loss), derivatives qualifying as hedges, tax | 2.6 | (0.1) | 5.7 | 5.7 | |||||
Unrecognized gain (loss) on cash flow hedges, amounts reclassified from accumulated other comprehensive income (loss) | 14.7 | [6] | (6.8) | [6] | 21.7 | [7] | (9.6) | [7] | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (2.8) | 1.2 | (4.1) | 1.6 | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 6.7 | (6.4) | (19.3) | (24.7) | |||||
Accumulated other comprehensive income (loss), net of tax - Ending balance | (35) | (25.8) | (35) | (25.8) | |||||
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 | (443.2) | (353.4) | (376.8) | (311.6) | |||||
Other comprehensive income (loss) arising during period, total | 6.2 | (40.7) | (72.3) | (87.9) | |||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 2.6 | 0.5 | 5.7 | 6.3 | |||||
Other comprehensive income (loss), reclassification before tax | 16.8 | (5.5) | 27.9 | (5.8) | |||||
Reclassification from AOCI, Current Period, Tax | (3.2) | 0.9 | (5.3) | 0.8 | |||||
Other comprehensive income (loss) | 22.4 | (44.8) | (44) | (86.6) | |||||
Accumulated other comprehensive income (loss), net of tax - Ending balance | $ (420.8) | $ (398.2) | $ (420.8) | $ (398.2) | |||||
[1] | Amounts are net of tax of $(0.4) million and $(1.2) million for the three and nine months ended September 30, 2020, and $0.3 million and $(0.2) million for the three and nine months ended September 30, 2019, respectively. | ||||||||
[2] | Amounts are net of tax of $(0.2) million and $1.6 million for the three and nine months ended September 30, 2020, and $1.1 million and $7.3 million for the three and nine months ended September 30, 2019, respectively. | ||||||||
[3] | 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. | ||||||||
[4] | These amounts were reclassified from AOCI to Other income (expense), net for the three months ended September 30, 2020 and September 30, 2019. | ||||||||
[5] | These amounts were reclassified from AOCI to Other income (expense), net for the nine months ended September 30, 2020 and September 30, 2019. | ||||||||
[6] | The amounts reclassified from AOCI included $1.3 million in cost of goods sold (COGS), $4.1 million in interest expense and $9.3 million in Other income (expense), net for the three months ended September 30, 2020 and $(0.9) million in COGS, $1.7 million in interest expense and $(7.6) million in Other income (expense), net for the three months ended September 30, 2019. | ||||||||
[7] | The amounts reclassified from AOCI included $2.3 million in COGS, $10.1 million in interest expense and $9.3 million in Other income (expense), net for the nine months ended September 30, 2020 and $(1.8) million in COGS, $(0.2) million in interest expense and $(7.6) million in Other income (expense), net for the nine months ended September 30, 2019. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,414.1 | $ 1,677.4 | $ 3,272.9 | $ 5,100.9 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,122.9 | 1,369.3 | 2,519.9 | 4,101.7 |
Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 128.9 | 141.3 | 336.2 | 445 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 147.5 | 139 | 378.4 | 471.3 |
South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14.8 | 27.8 | 38.4 | 82.9 |
Driveline [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,093.9 | 1,152.4 | 2,502.4 | 3,456.7 |
Driveline [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 870.8 | 917 | 1,922.5 | 2,688.9 |
Driveline [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 116.7 | 131 | 307.9 | 419.3 |
Driveline [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 94.1 | 77.9 | 239.3 | 270.3 |
Driveline [Member] | South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12.3 | 26.5 | 32.7 | 78.2 |
Metal Forming [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 320.2 | 369.6 | 770.5 | 1,135.1 |
Metal Forming [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 252.1 | 296.9 | 597.4 | 903.7 |
Metal Forming [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12.2 | 10.3 | 28.3 | 25.7 |
Metal Forming [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 53.4 | 61.1 | 139.1 | 201 |
Metal Forming [Member] | South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2.5 | 1.3 | 5.7 | 4.7 |
Casting [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 155.4 | 0 | 509.1 |
Casting [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 155.4 | 0 | 509.1 |
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, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts receivable, net | $ 900.8 | $ 900.8 | $ 815.4 |
Deferred revenue, current | 22.8 | 22.8 | 18.9 |
Deferred revenue, noncurrent | 75.6 | 75.6 | $ 83.7 |
Increase (decrease) in accounts receivable | 85.4 | ||
Contract liability, current, increase (decrease) | 3.9 | ||
Contract liability, noncurrent, increase (decrease) | (8.1) | ||
Contract with customer, liability, revenue recognized | $ 5.4 | $ 17.3 |
Sales and Segment Adjusted EBIT
Sales and Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,527.7 | $ 1,831.8 | $ 3,535.7 | $ 5,520.3 |
Intersegment sales | 113.6 | 154.4 | 262.8 | 419.4 |
Net external sales | 1,414.1 | 1,677.4 | 3,272.9 | 5,100.9 |
Segment Adjusted EBITDA | 297.1 | 265.8 | 458.3 | 776.8 |
Driveline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,094.5 | 1,186.8 | 2,529.9 | 3,534.6 |
Intersegment sales | 0.6 | 34.4 | 27.5 | 77.9 |
Net external sales | 1,093.9 | 1,152.4 | 2,502.4 | 3,456.7 |
Segment Adjusted EBITDA | 207.4 | 181 | 315.5 | 485.9 |
Metal Forming [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 433.2 | 476.6 | 1,005.8 | 1,444.1 |
Intersegment sales | 113 | 107 | 235.3 | 309 |
Net external sales | 320.2 | 369.6 | 770.5 | 1,135.1 |
Segment Adjusted EBITDA | 89.7 | 79.3 | 142.8 | 250.2 |
Casting [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 168.4 | 0 | 541.6 |
Intersegment sales | 0 | 13 | 0 | 32.5 |
Net external sales | 0 | 155.4 | 0 | 509.1 |
Segment Adjusted EBITDA | $ 0 | $ 5.5 | $ 0 | $ 40.7 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total segment adjusted EBITDA | $ 297.1 | $ 265.8 | $ 458.3 | $ 776.8 |
Interest expense | (53.9) | (54.3) | (160) | (163.9) |
Depreciation and amortization | (125) | (134.2) | (393.7) | (411.5) |
Restructuring and acquisition-related costs | (9.7) | (11.7) | (38.6) | (36) |
Loss on sale of business | 0 | 0 | (1) | 0 |
Debt refinancing and redemption costs | (5.2) | (5.1) | (6.7) | (7.5) |
Impairment charges | 0 | (225) | (510) | (225) |
Malvern Fire charges, net of recoveries | (8.6) | 0 | (8.6) | 0 |
Income (loss) before income taxes | $ 94.7 | $ (164.5) | $ (660.3) | $ (67.1) |