Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.01 per share | |
Trading Symbol | AXL | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 117,019,709 | |
Entity Central Index Key | 0001062231 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net sales | $ 1,493.9 | $ 1,436.2 |
Cost of goods sold | 1,333.3 | 1,249.4 |
Gross profit | 160.6 | 186.8 |
Selling, general and administrative expenses | 98.3 | 86.1 |
Amortization of intangible assets | 21.4 | 21.5 |
Restructuring and acquisition-related costs | 4.8 | 8.9 |
Operating income | 36.1 | 70.3 |
Interest expense | (50.5) | (44.7) |
Interest income | 5.9 | 3 |
Debt refinancing and redemption costs | 0 | (5.6) |
Unrealized loss on equity securities | (0.3) | (18) |
Other income (expense), net | 3.7 | (1) |
Income (loss) before income taxes | (5.1) | 4 |
Income tax expense | 0 | 3 |
Net income (loss) | $ (5.1) | $ 1 |
Basic earnings (loss) per share | $ (0.04) | $ 0.01 |
Diluted earnings (loss) per share | $ (0.04) | $ 0.01 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Net income (loss) | $ (5.1) | $ 1 | |
Other comprehensive income (loss) | |||
Defined benefit plans, net of tax | [1] | (0.7) | 1.3 |
Foreign currency translation adjustments | 8.8 | 6 | |
Changes in cash flow hedges, net of tax | [2] | 2.5 | 15.7 |
Other comprehensive income | 10.6 | 23 | |
Comprehensive income | $ 5.5 | $ 24 | |
[1]Amounts are net of tax of $0.5 million for the three months ended March 31, 2023 and $(0.5) million for the three months ended March 31, 2022.[2]Amounts are net of tax of $1.8 million for the three months ended March 31, 2023 and $(2.9) million for the three months ended March 31, 2022. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | $ 0.5 | $ (0.5) |
Other comprehensive income (loss), derivatives qualifying as hedges, tax | $ 1.8 | $ (2.9) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 465.7 | $ 511.5 |
Accounts receivable, net | 892.1 | 820.2 |
Inventories, net | 464.6 | 463.9 |
Prepaid expenses and other | 182.1 | 197.8 |
Total current assets | 2,004.5 | 1,993.4 |
Property, plant and equipment, net | 1,864.7 | 1,903 |
Deferred income taxes | 135 | 119 |
Goodwill | 181.7 | 181.6 |
Other intangible assets, net | 595.1 | 616.2 |
GM postretirement cost sharing asset | 129.5 | 127.6 |
Operating lease right-of-use assets | 106.3 | 107.2 |
Other assets and deferred charges | 436.1 | 421.4 |
Total assets | 5,452.9 | 5,469.4 |
Current liabilities | ||
Current portion of long-term debt | 49.6 | 75.9 |
Accounts payable | 771.3 | 734 |
Accrued compensation and benefits | 167.4 | 186.6 |
Deferred revenue | 26.9 | 28.1 |
Current portion of operating lease liabilities | 21.2 | 21.1 |
Accrued expenses and other | 161.6 | 153.6 |
Total current liabilities | 1,198 | 1,199.3 |
Long-term debt, net | 2,847.7 | 2,845.1 |
Deferred revenue | 68.5 | 73.4 |
Deferred income taxes | 11 | 10.7 |
Long-term portion of operating lease liabilities | 86.4 | 87.2 |
Postretirement benefits and other long-term liabilities | 619.6 | 626.4 |
Total liabilities | 4,831.2 | 4,842.1 |
Stockholders' equity | ||
Common stock, par value $0.01 per share; 150.0 million shares authorized; 127.3 million shares issued as of March 31, 2023 and 123.3 million shares issued as of December 31, 2022 | 1.3 | 1.3 |
Paid-in capital | 1,372.6 | 1,369.2 |
Accumulated deficit | (254.7) | (249.6) |
Treasury stock at cost, 10.3 million shares as of March 31, 2023 and 8.7 million shares as of December 31, 2022 | (232.7) | (218.2) |
Accumulated other comprehensive income (loss) | ||
Defined benefit plans, net of tax | (147.6) | (146.9) |
Foreign currency translation adjustments | (140.9) | (149.7) |
Unrecognized gain on cash flow hedges, net of tax | 23.7 | 21.2 |
Total stockholders' equity | 621.7 | 627.3 |
Total liabilities and stockholders' equity | $ 5,452.9 | $ 5,469.4 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150 | 150 |
Common stock, shares, issued | 127.3 | 123.3 |
Treasury Stock, Common, Shares | 10.3 | 8.7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net income (loss) | $ (5.1) | $ 1 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation and amortization | 124.9 | 120.4 |
Deferred income taxes | (15.4) | (8.6) |
Stock-based compensation | 3.4 | 4.5 |
Pensions and other postretirement benefits, net of contributions | (4) | (1.8) |
Loss (gain) on disposal of property, plant and equipment, net | 0.5 | (2.8) |
Unrealized loss on equity securities | 0.3 | 18 |
Debt refinancing and redemption costs | 0 | 5.6 |
Changes in operating assets and liabilities | ||
Accounts receivable | (68.4) | (166) |
Inventories | 2.9 | (2.1) |
Accounts payable and accrued expenses | 25.2 | 110.2 |
Deferred revenue | (6.9) | (8.3) |
Other assets and liabilities | (25.3) | (1.6) |
Net cash provided by operating activities | 32.1 | 68.5 |
Investing activities | ||
Purchases of property, plant and equipment | (46.6) | (28.6) |
Proceeds from sale of property, plant and equipment | 0.4 | 4.2 |
Acquisition of business, net of cash acquired | (0.6) | (6.7) |
Proceeds from insurance claim | 17 | 0 |
Other investing activities | (0.7) | (0.2) |
Net cash used in investing activities | (30.5) | (31.3) |
Financing activities | ||
Payments of Revolving Credit Facility | (25) | 0 |
Proceeds from issuance of long-term debt | 5.4 | 220.5 |
Payments of long-term debt | (11.3) | (252.1) |
Debt issuance costs | 0 | (3.5) |
Purchase of treasury stock | (14.5) | (1.8) |
Other financing activities | (3.7) | (1.8) |
Net cash used in financing activities | (49.1) | (38.7) |
Effect of exchange rate changes on cash | 1.7 | 1.2 |
Net decrease in cash and cash equivalents | (45.8) | (0.3) |
Cash and cash equivalents at beginning of period | 511.5 | 530.2 |
Cash and cash equivalents at end of period | 465.7 | 529.9 |
Supplemental cash flow information | ||
Interest paid | 41.6 | 38.6 |
Income taxes paid, net | $ 26 | $ 4.8 |
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, Common | AOCI Attributable to Parent | |
Common stock, shares, outstanding at Dec. 31, 2021 | 114 | ||||||
Total stockholders' equity at Dec. 31, 2021 | $ 1.3 | $ 1,351.5 | $ (313.9) | $ (216.3) | $ (364.8) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ 1 | 1 | |||||
Stock issued during period, shares, share-based compensation, net of forfeitures | 0.7 | ||||||
Vesting of restricted stock units and performance shares | 0 | ||||||
Stock-based compensation | 4.5 | ||||||
Treasury stock, shares, acquired | (0.2) | ||||||
Purchase of treasury stock | $ 1.8 | (1.8) | |||||
Changes in cash flow hedges, net of tax | 15.7 | [1] | 15.7 | ||||
Foreign currency translation adjustments | 6 | 6 | |||||
Defined benefit plans, net of tax | $ 1.3 | [2] | 1.3 | ||||
Common stock, shares, outstanding at Mar. 31, 2022 | 114.5 | ||||||
Total stockholders' equity at Mar. 31, 2022 | 1.3 | 1,356 | (312.9) | (218.1) | (341.8) | ||
Common stock, shares, outstanding at Dec. 31, 2022 | 114.6 | ||||||
Total stockholders' equity at Dec. 31, 2022 | $ 627.3 | 1.3 | 1,369.2 | (249.6) | (218.2) | (275.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ (5.1) | (5.1) | |||||
Stock issued during period, shares, share-based compensation, net of forfeitures | 4 | ||||||
Vesting of restricted stock units and performance shares | 0 | ||||||
Stock-based compensation | 3.4 | ||||||
Treasury stock, shares, acquired | (1.6) | ||||||
Purchase of treasury stock | $ 14.5 | (14.5) | |||||
Changes in cash flow hedges, net of tax | 2.5 | [1] | 2.5 | ||||
Foreign currency translation adjustments | 8.8 | 8.8 | |||||
Defined benefit plans, net of tax | $ (0.7) | [2] | (0.7) | ||||
Common stock, shares, outstanding at Mar. 31, 2023 | 117 | ||||||
Total stockholders' equity at Mar. 31, 2023 | $ 621.7 | $ 1.3 | $ 1,372.6 | $ (254.7) | $ (232.7) | $ (264.8) | |
[1]Amounts are net of tax of $1.8 million for the three months ended March 31, 2023 and $(2.9) million for the three months ended March 31, 2022.[2]Amounts are net of tax of $0.5 million for the three months ended March 31, 2023 and $(0.5) million for the three months ended March 31, 2022. |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 As a leading global tier 1 automotive and mobility supplier, AAM designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid, and internal combustion vehicles. Headquartered in Detroit, with over 80 facilities in 18 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. 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, 2022 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 significant disruptions in the supply chain that continue to impact the automotive industry, including volatility in metal, commodity and utility costs, shortages of certain raw materials and components, including semiconductor chips, increased transportation costs, higher labor costs and labor shortages. 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 these matters 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, 2022. |
Restructuring and Acquisition-R
Restructuring and Acquisition-Related Costs (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 2020, we initiated a global restructuring program (the 2020 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 complete restructuring actions under the 2020 Program in 2023. In the second quarter of 2021, we completed the acquisition of a manufacturing facility in Emporium, Pennsylvania (Emporium), and subsequently determined that we will cease production at the facility and relocate the production capacity to other AAM manufacturing facilities. As a result, during the three months ended March 31, 2023, we incurred restructuring charges related to the anticipated closure of the facility and we expect to complete restructuring actions associated with the closure of the facility in 2023. In 2022, we completed our acquisition of Tekfor Group (Tekfor) and have initiated certain restructuring actions associated with the acquired entities in the first quarter of 2023. We expect to incur restructuring costs associated with the acquired entities through 2023. A summary of our restructuring activity for the first three months of 2023 and 2022 is shown below: Severance Charges Implementation Costs Total (in millions) Accrual at December 31, 2021 $ 0.7 $ 2.7 $ 3.4 Charges 1.3 5.9 7.2 Cash utilization (0.8) (6.6) (7.4) Accrual at March 31, 2022 $ 1.2 $ 2.0 $ 3.2 Accrual at December 31, 2022 $ 2.4 $ 1.4 $ 3.8 Charges 0.3 3.7 4.0 Cash utilization (0.7) (2.5) (3.2) Accrual at March 31, 2023 $ 2.0 $ 2.6 $ 4.6 As part of our restructuring actions, we incurred total severance charges of approximately $0.3 million and $1.3 million during the three months ended March 31, 2023 and 2022, respectively. We also incurred total implementation costs of approximately $3.7 million and $5.9 million during the three months ended March 31, 2023 and 2022, respectively. Implementation costs consist primarily of plant exit costs. We incurred $1.6 million of restructuring costs under the 2020 Program, $2.1 million of costs associated with the anticipated closure of Emporium, and $0.3 million of costs related to restructuring actions associated with Tekfor in the three months ended March 31, 2023. We have incurred $102.2 million of total restructuring costs under the 2020 Program since inception and have incurred $14.2 million of total costs related to the anticipated closure of Emporium. Substantially all of our total restructuring costs for the three months ended March 31, 2023 related to our Metal Forming segment. Approximately $0.7 million and $3.4 million of our total restructuring costs for the three months ended March 31, 2022 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. We expect to incur approximately $10 million to $20 million of total restructuring charges in 2023 associated with the 2020 Program, our closure of Emporium and restructuring actions related to Tekfor. The following table represents a summary of acquisition-related charges incurred primarily related to our acquisition of Tekfor, as well as integration costs incurred for acquisitions: Acquisition-Related Costs Integration Expenses Total (in millions) Charges for the three months ended March 31, 2023 $ — $ 0.8 $ 0.8 Charges for the three months ended March 31, 2022 1.1 0.6 1.7 |
Inventories (Notes)
Inventories (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 3. 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: March 31, 2023 December 31, 2022 (in millions) Raw materials and work-in-progress $ 407.8 $ 398.9 Finished goods 88.5 92.5 Gross inventories 496.3 491.4 Inventory valuation reserves (31.7) (27.5) Inventories, net $ 464.6 $ 463.9 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table provides a reconciliation of changes in goodwill for the three months ended March 31, 2023: Consolidated (in millions) Balance at December 31, 2022 $ 181.6 Foreign currency translation 0.1 Balance at March 31, 2023 $ 181.7 We conduct our annual goodwill impairment test in the fourth quarter of each year, as well as whenever adverse events or changes in circumstances indicate a possible impairment. 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. At March 31, 2023, accumulated goodwill impairment losses were $1,435.5 million. All remaining goodwill is attributable to our Driveline reporting unit. 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: March 31, December 31, 2023 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Capitalized computer software $ 52.4 $ (44.6) $ 7.8 $ 52.2 $ (43.2) $ 9.0 Customer platforms 856.2 (380.6) 475.6 856.2 (364.7) 491.5 Customer relationships 53.0 (20.5) 32.5 53.0 (19.7) 33.3 Technology and other 154.1 (74.9) 79.2 154.1 (71.7) 82.4 Total $ 1,115.7 $ (520.6) $ 595.1 $ 1,115.5 $ (499.3) $ 616.2 Amortization expense for our intangible assets was $21.4 million for the three months ended March 31, 2023 and $21.5 million for the three months ended March 31, 2022. Estimated amortization expense for the years 2023 through 2027 is expected to be in the range of approximately $80 million to $85 million per year. |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | 5. LONG-TERM DEBT Long-term debt consists of the following: March 31, 2023 December 31, 2022 (in millions) Revolving Credit Facility $ — $ 25.0 Term Loan A Facility 520.0 520.0 Term Loan B Facility 673.3 675.0 6.875% Notes due 2028 400.0 400.0 6.50% Notes due 2027 500.0 500.0 6.25% Notes due 2026 180.0 180.0 5.00% Notes due 2029 600.0 600.0 Foreign credit facilities and other 73.6 72.7 Total debt 2,946.9 2,972.7 Less: Current portion of long-term debt 49.6 75.9 Long-term debt 2,897.3 2,896.8 Less: Debt issuance costs 49.6 51.7 Long-term debt, net $ 2,847.7 $ 2,845.1 Senior Secured Credit Facilities Our Senior Secured Credit Facilities are comprised of the Revolving Credit Facility, Term Loan A Facility and Term Loan B Facility. The Revolving Credit Facility and Term Loan A Facility mature in the first quarter of 2027 and the Term Loan B Facility matures in the fourth quarter of 2029. At March 31, 2023, we had $891.2 million available under the Revolving Credit Facility. This availability reflects a reduction of $33.8 million for standby letters of credit issued against the facility. In the first quarter of 2023, we paid $25.0 million on our Revolving Credit Facility that had been drawn in the fourth quarter of 2022. In March 2022, Holdings and AAM, Inc. entered into the Amended & Restated Credit Agreement. The Amended & Restated Credit Agreement, among other things, increased the principal amount of the Term Loan A Facility to $520.0 million, extended the maturity date of the Term Loan A Facility and the Revolving Credit Facility each to March 11, 2027, and established the use under the Term Loan A Facility and Revolving Credit Facility of the Secured Overnight Financing Rate (SOFR) and the minimum Adjusted Term SOFR Rate for Eurodollar-based loans denominated in U.S. Dollars and the Sterling Overnight Index Average (SONIA) and the minimum adjusted daily simple SONIA for loans denominated in Sterling. We expensed $0.2 million of debt refinancing costs, paid accrued interest of $1.0 million, and paid debt issuance costs of $3.5 million in the three months ended March 31, 2022 related to the Amended & Restated Credit Agreement. Also in the first quarter of 2022, we made a voluntary prepayment of $25.0 million on our Term Loan B Facility. As a result, we expensed approximately $0.2 million for the write-off of a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of this borrowing. 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. Redemption of 6.25% Notes due 2026 In the first quarter of 2022, we used the proceeds from the upsized Term Loan A Facility to voluntarily redeem a portion of our 6.25% Notes due 2026. This resulted in a principal payment of $220.0 million and $0.2 million in accrued interest. We also expensed approximately $1.8 million for the write-off of a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of the borrowing, and approximately $3.4 million for the payment of an early redemption premium. Foreign credit facilities and Other We utilize local currency credit facilities to finance the operations of certain foreign subsidiaries. At March 31, 2023, $73.6 million was outstanding under our foreign credit facilities, as compared to $72.7 million at December 31, 2022. At March 31, 2023, an additional $63.7 million was available under our foreign credit facilities. Weighted-Average Interest Rate The weighted-average interest rate of our long-term debt outstanding was 6.6% at both March 31, 2023 and December 31, 2022. |
Derivatives (Notes)
Derivatives (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022, we had currency forward contracts outstanding with a total notional amount of $192.3 million and $179.9 million, respectively, that hedge our exposure to changes in foreign currency exchange rates for certain payroll expenses into the fourth quarter of 2025 and the purchase of certain direct and indirect inventory and other working capital items into the fourth quarter of 2023. Fixed-to-fixed cross-currency swap In 2022, 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. We had notional amounts outstanding under fixed-to-fixed cross-currency swaps of €200.0 million at both March 31, 2023 and December 31, 2022, which were equivalent to $216.6 million and $213.9 million, respectively. The fixed-to-fixed cross-currency swap hedges our exposure to changes in exchange rates on the intercompany loans into the second quarter of 2024. Variable-to-fixed interest rate swaps In 2022, and in the first quarter of 2023, we entered into variable-to-fixed interest rate swaps to reduce the variability of cash flows associated with interest payments on our variable rate debt. As of March 31, 2023, we have $700.0 million notional amount hedged in relation to our variable-to-fixed interest rate swaps into the third quarter of 2027, $200.0 million of which continues into the fourth quarter of 2029. The following table summarizes the reclassification of pre-tax derivative gains and losses into net income from accumulated other comprehensive income (loss) for those derivative instruments designated as cash flow hedges under Accounting Standards Codification (ASC) 815 - Derivatives and Hedging : Location Gain (Loss) Reclassified During Total of Financial Gain Expected of Gain (Loss) Three Months Ended Statement to be Reclassified Reclassified into March 31, Line Item During the Net Income 2023 2022 2023 Next 12 Months (in millions) Currency forward contracts Cost of Goods Sold $ 3.3 $ 1.2 $ 1,333.3 $ 14.3 Fixed-to-fixed cross-currency swap Other Income (Expense), net (2.7) 6.0 3.7 0.3 Variable-to-fixed interest rate swap Interest Expense 0.6 (2.9) (50.5) 0.8 See Note 12 - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (AOCI) for amounts recognized in other comprehensive income during the three months ended March 31, 2023 and 2022. 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: Location Gain Recognized During Total of Financial of Gain Three Months Ended Statement Recognized in March 31, Line Item Net Income 2023 2022 2023 (in millions) Currency forward contracts Other Income (Expense), net $ 2.1 $ 1.0 $ 3.7 |
Fair Value (Notes)
Fair Value (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 carrying 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: Fair Value March 31, 2023 December 31, 2022 Input (in millions) Balance Sheet Classification Cash equivalents $ 306.2 $ 363.6 Level 1 Prepaid expenses and other Cash flow hedges - currency forward contracts 14.3 8.2 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 1.1 2.4 Level 2 Nondesignated - currency forward contracts 1.2 0.5 Level 2 Other assets and deferred charges Cash flow hedges - currency forward contracts 6.2 3.0 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 3.5 8.5 Level 2 Investment in equity securities 1.6 1.9 Level 1 Accrued expenses and other Cash flow hedges - variable-to-fixed interest rate swap 0.3 — Level 2 Postretirement benefits and other long-term liabilities Cash flow hedges - fixed-to-fixed cross-currency swap 4.7 1.5 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 1.5 — 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 have an investment in the equity securities of REE Automotive, an e-mobility company. These equity securities are measured at fair value each reporting period with changes in fair value reported through an unrealized gain or loss within Other income (expense), net in our Condensed Consolidated Statement of Operations. As of March 31, 2023, our investment in REE shares was valued at $1.6 million based on a closing price on that date of $0.33 per share. We estimated the fair value of the amounts outstanding on our debt using available market information and other observable data, to be as follows: March 31, 2023 December 31, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Revolving Credit Facility $ — $ — $ 25.0 $ 25.0 Level 2 Term Loan A Facility 520.0 509.6 520.0 510.3 Level 2 Term Loan B Facility 673.3 668.3 675.0 658.1 Level 2 6.875% Notes due 2028 400.0 359.9 400.0 355.4 Level 2 6.50% Notes due 2027 500.0 456.4 500.0 452.5 Level 2 6.25% Notes due 2026 180.0 172.8 180.0 165.7 Level 2 5.00% Notes due 2029 600.0 499.5 600.0 474.9 Level 2 |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions) Service cost $ 0.3 $ 0.5 Interest cost 6.0 4.2 Expected asset return (7.2) (8.0) Amortized loss 1.0 1.9 Net periodic benefit cost (credit) $ 0.1 $ (1.4) Other Postretirement Benefits Three Months Ended March 31, 2023 2022 (in millions) Service cost $ — $ 0.1 Interest cost 2.5 2.1 Amortized loss (gain) (2.1) 0.1 Amortized prior service credit (0.1) (0.2) Net periodic benefit cost $ 0.3 $ 2.1 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 March 31, 2023 and December 31, 2022, we have a noncurrent pension liability of $71.7 million and $73.5 million, respectively. As of March 31, 2023 and December 31, 2022, we have a noncurrent other postretirement benefits liability of $303.3 million and $304.8 million, respectively. Due to the availability of our pre-funded pension balances (previous contributions in excess of prior required pension contributions), we expect our regulatory pension funding requirements in 2023 to be less than $1.0 million. We expect our cash payments for other postretirement benefit obligations in 2023, net of GM cost sharing, to be approximately $14.6 million. |
Product Warranties (Notes)
Product Warranties (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions) Beginning balance $ 54.1 $ 59.5 Accruals 8.7 4.0 Payments (1.8) (3.1) Foreign currency translation 0.4 — Ending balance $ 61.4 $ 60.4 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 the effects of changes in tax laws or rates on deferred tax balances, 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. Our income tax expense and effective income tax rate for the three months ended March 31, 2023 and 2022 are as follows: Three Months Ended March 31, 2023 2022 (in millions) Income tax expense $ — $ 3.0 Effective income tax rate — % 75.0 % During the three months ended March 31, 2023, in computing our estimated annual effective tax rate, we recorded a full valuation allowance against the deferred tax asset on the current year estimated disallowed interest expense in the U.S. In addition, we recorded a valuation allowance against a portion of the deferred tax asset on prior year disallowed interest expense in the U.S. and reduced our liability for unrecognized income tax benefits and related interest and penalties as a result of a change in estimate on previously recorded unrecognized tax benefits in certain jurisdictions, resulting in net tax expense of $3.4 million during the three months ended March 31, 2023. Our effective income tax rate for the three months ended March 31, 2023 varies from our effective income tax rate for the three months ended March 31, 2022 primarily as a result of the mix of earnings on a jurisdictional basis and the impact of the discrete items noted above. For the three months ended March 31, 2023, our effective income tax rate varies from the U.S. federal statutory rate primarily due to the unfavorable impact related to the disallowed interest expense deductions in the U.S., net of the impact of the reduction in unrecognized tax benefits, favorable foreign tax rates and the impact of tax credits. For the three months ended March 31, 2022, our effective income tax rate varies from the U.S. federal statutory rate primarily due to the change in jurisdictional mix of earnings, as well as favorable foreign tax rates and the impact of tax credits. 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. Due to the uncertainty associated with the extent and ultimate impact of the significant supply chain constraints affecting the automotive industry, including volatility in metal and commodity costs, higher utility costs, increased transportation costs, higher labor costs and labor shortages, we may experience lower than projected earnings in certain jurisdictions in future periods, and as a result, it is reasonably possible that changes in valuation allowances could be recognized in future periods and such changes could be material to our financial statements. Other Income Tax Matters During their examination of our 2015 U.S. federal income tax return, the Internal Revenue Service (IRS) asserted that income earned by a Luxembourg subsidiary from its Mexican branch operations should be categorized as foreign base company sales income (FBCSI) under Section 954(d) of the Internal Revenue Code and recognized currently as taxable income on our 2015 U.S. federal income tax return. As a result of this assertion, the IRS issued a Notice of Proposed Adjustment (NOPA). AAM disagreed with the NOPA, believes that the proposed adjustment is without merit and contested the matter through the IRS's administrative appeals process. No resolution was reached in the appeals process and in September 2022, the IRS issued a Notice of Deficiency. The IRS subsequently issued a Notice of Tax Due in December 2022 and AAM paid the assessed tax and interest of $10.1 million in January 2023. We have filed a claim for refund for the amount of tax and interest paid related to this matter for the 2015 tax year and, if necessary, will file suit in the U.S. Court of Federal Claims. We believe it is likely that we will be successful in ultimately defending our position. As such, we have not recorded any impact of the IRS’s proposed adjustment in our condensed consolidated financial statements as of, and for the three months ended, March 31, 2023, with the exception of the cash payment and associated income tax receivable of $10.1 million paid by AAM to the IRS in the first quarter of 2023. As of March 31, 2023, in the event AAM is not successful in defending its position, the potential additional income tax expense, including estimated interest charges, related to tax years 2015 through 2022, is estimated to be in the range of approximately $285 million to $335 million. In a matter of related interest, in May 2020, the U.S Tax Court ruled against another U.S. corporation, finding that the income it earned through a Mexican branch of its Luxembourg subsidiary corporation was FBCSI. In that situation, the taxpayer appealed the U.S. Tax Court decision to the U.S. Court of Appeals for the Sixth Circuit. In December 2021, the U.S. Court of Appeals affirmed, in a split decision, the Tax Court decision in favor of the IRS. In January 2022, the taxpayer in the above referenced matter filed a petition for rehearing and this petition was denied. Finally, in June 2022, the taxpayer filed a petition with the U.S. Supreme Court to review the judgment of the U.S. Court of Appeals for the Sixth Circuit and in November 2022 that petition was also denied. Notwithstanding the decisions rendered in that case, and because our position is based upon different facts and circumstances, including but not limited to, differences in structure, and different income tax regulations in effect for our tax years under examination, we continue to believe, after consultation with tax and legal counsel that it is more likely than not that our structure does not give rise to FBCSI. |
Earnings (Loss) Per Share (Note
Earnings (Loss) Per Share (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 are our 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 March 31, 2023 2022 (in millions, except per share data) Numerator Net income (loss) $ (5.1) $ 1.0 Less: Net income attributable to participating securities — — Net income (loss) attributable to common shareholders - Basic and Dilutive $ (5.1) $ 1.0 Denominators Basic common shares outstanding - Weighted-average shares outstanding 119.8 118.8 Less: Weighted-average participating securities (4.6) (4.6) Weighted-average common shares outstanding 115.2 114.2 Effect of dilutive securities - Dilutive stock-based compensation — 0.5 Diluted shares outstanding - Adjusted weighted-average shares after assumed conversions 115.2 114.7 Basic EPS $ (0.04) $ 0.01 Diluted EPS $ (0.04) $ 0.01 |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and March 31, 2022 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2022 $ (146.9) $ (149.7) $ 21.2 $ (275.4) Other comprehensive income before reclassifications — 8.8 1.9 10.7 Income tax effect of other comprehensive income before reclassifications — — 2.2 2.2 Amounts reclassified from accumulated other comprehensive income (loss) (1.2) (a) — (1.2) (b) (2.4) Income taxes reclassified into net loss 0.5 — (0.4) 0.1 Net change in accumulated other comprehensive income (loss) (0.7) 8.8 2.5 10.6 Balance at March 31, 2023 $ (147.6) $ (140.9) $ 23.7 $ (264.8) Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2021 $ (241.9) $ (111.3) $ (11.6) $ (364.8) Other comprehensive income before reclassifications — 6.0 22.9 28.9 Income tax effect of other comprehensive income before reclassifications — — (3.5) (3.5) Amounts reclassified from accumulated other comprehensive income (loss) 1.8 (a) — (4.3) (b) (2.5) Income taxes reclassified into net income (0.5) — 0.6 0.1 Net change in accumulated other comprehensive income (loss) 1.3 6.0 15.7 23.0 Balance at March 31, 2022 $ (240.6) $ (105.3) $ 4.1 $ (341.8) (a) These amounts were reclassified from AOCI to Other income (expense), net for the three months ended March 31, 2023 and March 31, 2022. (b) The amounts reclassified from AOCI included $(3.3) million in cost of goods sold (COGS), $(0.6) million in interest expense and $2.7 million in Other income (expense), net for the three months ended March 31, 2023 and $(1.2) million in COGS, $2.9 million in interest expense and $(6.0) million in Other income (expense), net for the three months ended March 31, 2022. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022. Net sales are attributed to regions based on the location of production. Intersegment sales have been excluded from the table. In the first quarter of 2023, we moved a plant location that was previously reported under our Driveline segment to our Metal Forming segment in order to better align our product and process technologies. The amounts in the table below for the three months ended March 31, 2022 have been recast to reflect this reorganization. Three Months Ended March 31, 2023 Driveline Metal Forming Total North America $ 783.0 $ 328.5 $ 1,111.5 Asia 105.8 6.7 112.5 Europe 99.8 122.9 222.7 South America 25.2 22.0 47.2 Total $ 1,013.8 $ 480.1 $ 1,493.9 Three Months Ended March 31, 2022 Driveline Metal Forming Total North America $ 808.6 $ 318.6 $ 1,127.2 Asia 117.0 10.5 127.5 Europe 105.8 59.2 165.0 South America 14.0 2.5 16.5 Total $ 1,045.4 $ 390.8 $ 1,436.2 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 (in millions) : Accounts Receivable, Net Contract Liabilities (Current) Contract Liabilities (Long-term) December 31, 2022 $ 820.2 $ 28.1 $ 73.4 March 31, 2023 892.1 26.9 68.5 Increase/(decrease) $ 71.9 $ (1.2) $ (4.9) 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. We amortized previously recorded contract liabilities into revenue as we satisfied performance obligations with our customers of approximately $7.6 million and $7.9 million for the three months ended March 31, 2023 and 2022, respectively. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Acquisitions and Dispositions [Abstract] | |
Acquisitions and Dispositions [Text Block] | 14. ACQUISITIONS AND DISPOSITIONS Acquisition of Tekfor Group On June 1, 2022, our acquisition of Tekfor Group became effective and we paid a total purchase price of $94.4 million, which was funded entirely with cash on hand. Tekfor Group manufactures high-performance components, modules and fasteners, including traditional powertrain and driveline components (for both internal combustion and hybrid applications), and e-mobility components. Our acquisition of Tekfor contributes to diversifying our geographic and customer sales mix, while also increasing our electrification product portfolio. The acquisition of Tekfor Group was accounted for under the acquisition method under ASC 805 - Business Combinations with the purchase price allocated to the identifiable assets and liabilities of the acquired company based on the respective fair values of the assets and liabilities. The following represents the fair values of the assets acquired and liabilities assumed resulting from the acquisition (in millions) : Total consideration transferred $ 94.4 Cash and cash equivalents $ 14.3 Accounts receivable 33.7 Inventories 46.3 Prepaid expenses and other long-term assets 30.1 Deferred income tax assets 5.0 Property, plant and equipment 105.5 Total assets acquired $ 234.9 Accounts payable 33.5 Accrued expenses and other 28.1 Debt 23.4 Postretirement benefits and other long-term liabilities 41.9 Net assets acquired $ 108.0 Gain on bargain purchase of business $ 13.6 The gain on bargain purchase of business was primarily the result of macroeconomic factors such as the supply chain disruptions impacting the automotive industry, including the conflict between Russia and Ukraine, the semiconductor supply shortage, and increasing input costs, including materials, freight and utilities. We finalized the valuation of the assets and liabilities of Tekfor in the first quarter of 2023 as we concluded the customary post-closing reviews associated with the acquisition. There were no adjustments to the purchase price allocation in the three months ended March 31, 2023. Included in net sales and net loss for the period from January 1, 2023 through March 31, 2023 was approximately $101 million and a loss of $4 million, respectively, attributable to Tekfor. Unaudited Pro Forma Financial Information Unaudited pro forma net sales for AAM, on a combined basis with Tekfor for the three months ended March 31, 2022 were $1.5 billion, excluding Tekfor sales to AAM during the period. Unaudited pro forma net income for the three months ended March 31, 2022 was approximately $1.0 million. Unaudited pro forma earnings per share for the three months ended March 31, 2022 were $0.01 per share. The disclosure of unaudited pro forma net sales and earnings is for informational purposes only and does not purport to indicate the results that would actually have been obtained had the merger been completed on the assumed date for the periods presented, or which may be realized in the future. |
Manufacturing Facility Fire and
Manufacturing Facility Fire and Insurance Recovery (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Insurance Recoveries [Abstract] | |
Manufacturing Facility Fire and Insurance Recovery | 15 . MANUFACTURING FACILITY FIRE AND INSURANCE RECOVERY In the third quarter of 2020, a significant industrial fire occurred at our Malvern Manufacturing Facility in Ohio (Malvern Fire). All associates were evacuated safely and without injury and we were able to maintain continuity of supply to our customers without any significant disruptions. In the fourth quarter of 2022, we finalized the claim with our insurance providers. In January 2023, we collected the final $24.0 million associated with this claim, of which $7.0 million has been presented as an operating cash inflow and $17.0 million has been presented as an investing cash inflow in our Condensed Consolidated Statement of Cash Flows for the first quarter of 2023. There was no impact on our Condensed Consolidated Statement of Operations for the three months ended March 31, 2023 associated with the Malvern Fire. |
Segment Reporting (Notes)
Segment Reporting (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 16. SEGMENT REPORTING Our business is organized into Driveline and Metal Forming segments, with each representing a reportable segment under ASC 280 - Segment Reporting. 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 engine, transmission, driveline and safety-critical components for traditional internal combustion engine and electric vehicle architectures including light vehicles, commercial vehicles and off-highway vehicles, as well as products for industrial markets. We use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Segment Adjusted EBITDA is defined as EBITDA for our reportable segments excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, loss on the sale of a business, pension settlements, unrealized gains or losses on equity securities, and non-recurring items. On June 1, 2022, our acquisition of Tekfor became effective and we began consolidating the results of Tekfor on that date, which are reported in our Metal Forming segment for the three months ended March 31, 2023. In the first quarter of 2023, we moved a plant location that was previously reported under our Driveline segment to our Metal Forming segment in order to better align our product and process technologies. The amounts in the tables below for the three months ended March 31, 2022 have been recast to reflect this reorganization. The following tables represent information by reportable segment for the three months ended March 31, 2023 and 2022 (in millions) : Three Months Ended March 31, 2023 Driveline Metal Forming Total Sales $ 1,013.8 $ 619.1 $ 1,632.9 Less: Intersegment sales — 139.0 139.0 Net external sales $ 1,013.8 $ 480.1 $ 1,493.9 Segment Adjusted EBITDA $ 114.1 $ 61.3 $ 175.4 Three Months Ended March 31, 2022 Driveline Metal Forming Total Sales $ 1,045.4 $ 525.1 $ 1,570.5 Less: Intersegment sales — 134.3 134.3 Net external sales $ 1,045.4 $ 390.8 $ 1,436.2 Segment Adjusted EBITDA $ 122.8 $ 73.3 $ 196.1 The following table represents a reconciliation of Total Segment Adjusted EBITDA to consolidated income (loss) before income taxes for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in millions) Total segment adjusted EBITDA $ 175.4 $ 196.1 Interest expense (50.5) (44.7) Depreciation and amortization (124.9) (120.4) Restructuring and acquisition-related costs (4.8) (8.9) Unrealized loss on equity securities (0.3) (18.0) Debt refinancing and redemption costs — (5.6) Non-recurring items: Malvern Fire insurance recoveries, net — 5.5 Income (loss) before income taxes $ (5.1) $ 4.0 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 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 significant disruptions in the supply chain that continue to impact the automotive industry, including volatility in metal, commodity and utility costs, shortages of certain raw materials and components, including semiconductor chips, increased transportation costs, higher labor costs and labor shortages. 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 these matters 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, 2022. |
Restructuring and Acquisition_2
Restructuring and Acquisition-Related Costs (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | A summary of our restructuring activity for the first three months of 2023 and 2022 is shown below: Severance Charges Implementation Costs Total (in millions) Accrual at December 31, 2021 $ 0.7 $ 2.7 $ 3.4 Charges 1.3 5.9 7.2 Cash utilization (0.8) (6.6) (7.4) Accrual at March 31, 2022 $ 1.2 $ 2.0 $ 3.2 Accrual at December 31, 2022 $ 2.4 $ 1.4 $ 3.8 Charges 0.3 3.7 4.0 Cash utilization (0.7) (2.5) (3.2) Accrual at March 31, 2023 $ 2.0 $ 2.6 $ 4.6 |
Business Combination, Separately Recognized Transactions [Table Text Block] | The following table represents a summary of acquisition-related charges incurred primarily related to our acquisition of Tekfor, as well as integration costs incurred for acquisitions: Acquisition-Related Costs Integration Expenses Total (in millions) Charges for the three months ended March 31, 2023 $ — $ 0.8 $ 0.8 Charges for the three months ended March 31, 2022 1.1 0.6 1.7 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: March 31, 2023 December 31, 2022 (in millions) Raw materials and work-in-progress $ 407.8 $ 398.9 Finished goods 88.5 92.5 Gross inventories 496.3 491.4 Inventory valuation reserves (31.7) (27.5) Inventories, net $ 464.6 $ 463.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table provides a reconciliation of changes in goodwill for the three months ended March 31, 2023: Consolidated (in millions) Balance at December 31, 2022 $ 181.6 Foreign currency translation 0.1 Balance at March 31, 2023 $ 181.7 |
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: March 31, December 31, 2023 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Capitalized computer software $ 52.4 $ (44.6) $ 7.8 $ 52.2 $ (43.2) $ 9.0 Customer platforms 856.2 (380.6) 475.6 856.2 (364.7) 491.5 Customer relationships 53.0 (20.5) 32.5 53.0 (19.7) 33.3 Technology and other 154.1 (74.9) 79.2 154.1 (71.7) 82.4 Total $ 1,115.7 $ (520.6) $ 595.1 $ 1,115.5 $ (499.3) $ 616.2 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: March 31, 2023 December 31, 2022 (in millions) Revolving Credit Facility $ — $ 25.0 Term Loan A Facility 520.0 520.0 Term Loan B Facility 673.3 675.0 6.875% Notes due 2028 400.0 400.0 6.50% Notes due 2027 500.0 500.0 6.25% Notes due 2026 180.0 180.0 5.00% Notes due 2029 600.0 600.0 Foreign credit facilities and other 73.6 72.7 Total debt 2,946.9 2,972.7 Less: Current portion of long-term debt 49.6 75.9 Long-term debt 2,897.3 2,896.8 Less: Debt issuance costs 49.6 51.7 Long-term debt, net $ 2,847.7 $ 2,845.1 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 pre-tax derivative gains and losses into net income from accumulated other comprehensive income (loss) for those derivative instruments designated as cash flow hedges under Accounting Standards Codification (ASC) 815 - Derivatives and Hedging : Location Gain (Loss) Reclassified During Total of Financial Gain Expected of Gain (Loss) Three Months Ended Statement to be Reclassified Reclassified into March 31, Line Item During the Net Income 2023 2022 2023 Next 12 Months (in millions) Currency forward contracts Cost of Goods Sold $ 3.3 $ 1.2 $ 1,333.3 $ 14.3 Fixed-to-fixed cross-currency swap Other Income (Expense), net (2.7) 6.0 3.7 0.3 Variable-to-fixed interest rate swap Interest Expense 0.6 (2.9) (50.5) 0.8 See Note 12 - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (AOCI) for amounts recognized in other comprehensive income during the three months ended March 31, 2023 and 2022. 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: Location Gain Recognized During Total of Financial of Gain Three Months Ended Statement Recognized in March 31, Line Item Net Income 2023 2022 2023 (in millions) Currency forward contracts Other Income (Expense), net $ 2.1 $ 1.0 $ 3.7 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The estimated carrying 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: Fair Value March 31, 2023 December 31, 2022 Input (in millions) Balance Sheet Classification Cash equivalents $ 306.2 $ 363.6 Level 1 Prepaid expenses and other Cash flow hedges - currency forward contracts 14.3 8.2 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 1.1 2.4 Level 2 Nondesignated - currency forward contracts 1.2 0.5 Level 2 Other assets and deferred charges Cash flow hedges - currency forward contracts 6.2 3.0 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 3.5 8.5 Level 2 Investment in equity securities 1.6 1.9 Level 1 Accrued expenses and other Cash flow hedges - variable-to-fixed interest rate swap 0.3 — Level 2 Postretirement benefits and other long-term liabilities Cash flow hedges - fixed-to-fixed cross-currency swap 4.7 1.5 Level 2 Cash flow hedges - variable-to-fixed interest rate swap 1.5 — 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: March 31, 2023 December 31, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Input (in millions) Revolving Credit Facility $ — $ — $ 25.0 $ 25.0 Level 2 Term Loan A Facility 520.0 509.6 520.0 510.3 Level 2 Term Loan B Facility 673.3 668.3 675.0 658.1 Level 2 6.875% Notes due 2028 400.0 359.9 400.0 355.4 Level 2 6.50% Notes due 2027 500.0 456.4 500.0 452.5 Level 2 6.25% Notes due 2026 180.0 172.8 180.0 165.7 Level 2 5.00% Notes due 2029 600.0 499.5 600.0 474.9 Level 2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions) Service cost $ 0.3 $ 0.5 Interest cost 6.0 4.2 Expected asset return (7.2) (8.0) Amortized loss 1.0 1.9 Net periodic benefit cost (credit) $ 0.1 $ (1.4) Other Postretirement Benefits Three Months Ended March 31, 2023 2022 (in millions) Service cost $ — $ 0.1 Interest cost 2.5 2.1 Amortized loss (gain) (2.1) 0.1 Amortized prior service credit (0.1) (0.2) Net periodic benefit cost $ 0.3 $ 2.1 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions) Beginning balance $ 54.1 $ 59.5 Accruals 8.7 4.0 Payments (1.8) (3.1) Foreign currency translation 0.4 — Ending balance $ 61.4 $ 60.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) and Income Tax Rate | Our income tax expense and effective income tax rate for the three months ended March 31, 2023 and 2022 are as follows: Three Months Ended March 31, 2023 2022 (in millions) Income tax expense $ — $ 3.0 Effective income tax rate — % 75.0 % |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions, except per share data) Numerator Net income (loss) $ (5.1) $ 1.0 Less: Net income attributable to participating securities — — Net income (loss) attributable to common shareholders - Basic and Dilutive $ (5.1) $ 1.0 Denominators Basic common shares outstanding - Weighted-average shares outstanding 119.8 118.8 Less: Weighted-average participating securities (4.6) (4.6) Weighted-average common shares outstanding 115.2 114.2 Effect of dilutive securities - Dilutive stock-based compensation — 0.5 Diluted shares outstanding - Adjusted weighted-average shares after assumed conversions 115.2 114.7 Basic EPS $ (0.04) $ 0.01 Diluted EPS $ (0.04) $ 0.01 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and March 31, 2022 are as follows (in millions) : Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2022 $ (146.9) $ (149.7) $ 21.2 $ (275.4) Other comprehensive income before reclassifications — 8.8 1.9 10.7 Income tax effect of other comprehensive income before reclassifications — — 2.2 2.2 Amounts reclassified from accumulated other comprehensive income (loss) (1.2) (a) — (1.2) (b) (2.4) Income taxes reclassified into net loss 0.5 — (0.4) 0.1 Net change in accumulated other comprehensive income (loss) (0.7) 8.8 2.5 10.6 Balance at March 31, 2023 $ (147.6) $ (140.9) $ 23.7 $ (264.8) Defined Benefit Plans Foreign Currency Translation Adjustments Unrecognized Gain (Loss) on Cash Flow Hedges Total Balance at December 31, 2021 $ (241.9) $ (111.3) $ (11.6) $ (364.8) Other comprehensive income before reclassifications — 6.0 22.9 28.9 Income tax effect of other comprehensive income before reclassifications — — (3.5) (3.5) Amounts reclassified from accumulated other comprehensive income (loss) 1.8 (a) — (4.3) (b) (2.5) Income taxes reclassified into net income (0.5) — 0.6 0.1 Net change in accumulated other comprehensive income (loss) 1.3 6.0 15.7 23.0 Balance at March 31, 2022 $ (240.6) $ (105.3) $ 4.1 $ (341.8) (a) These amounts were reclassified from AOCI to Other income (expense), net for the three months ended March 31, 2023 and March 31, 2022. (b) The amounts reclassified from AOCI included $(3.3) million in cost of goods sold (COGS), $(0.6) million in interest expense and $2.7 million in Other income (expense), net for the three months ended March 31, 2023 and $(1.2) million in COGS, $2.9 million in interest expense and $(6.0) million in Other income (expense), net for the three months ended March 31, 2022. |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022. Net sales are attributed to regions based on the location of production. Intersegment sales have been excluded from the table. In the first quarter of 2023, we moved a plant location that was previously reported under our Driveline segment to our Metal Forming segment in order to better align our product and process technologies. The amounts in the table below for the three months ended March 31, 2022 have been recast to reflect this reorganization. Three Months Ended March 31, 2023 Driveline Metal Forming Total North America $ 783.0 $ 328.5 $ 1,111.5 Asia 105.8 6.7 112.5 Europe 99.8 122.9 222.7 South America 25.2 22.0 47.2 Total $ 1,013.8 $ 480.1 $ 1,493.9 Three Months Ended March 31, 2022 Driveline Metal Forming Total North America $ 808.6 $ 318.6 $ 1,127.2 Asia 117.0 10.5 127.5 Europe 105.8 59.2 165.0 South America 14.0 2.5 16.5 Total $ 1,045.4 $ 390.8 $ 1,436.2 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 (in millions) : Accounts Receivable, Net Contract Liabilities (Current) Contract Liabilities (Long-term) December 31, 2022 $ 820.2 $ 28.1 $ 73.4 March 31, 2023 892.1 26.9 68.5 Increase/(decrease) $ 71.9 $ (1.2) $ (4.9) |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following represents the fair values of the assets acquired and liabilities assumed resulting from the acquisition (in millions) : Total consideration transferred $ 94.4 Cash and cash equivalents $ 14.3 Accounts receivable 33.7 Inventories 46.3 Prepaid expenses and other long-term assets 30.1 Deferred income tax assets 5.0 Property, plant and equipment 105.5 Total assets acquired $ 234.9 Accounts payable 33.5 Accrued expenses and other 28.1 Debt 23.4 Postretirement benefits and other long-term liabilities 41.9 Net assets acquired $ 108.0 Gain on bargain purchase of business $ 13.6 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and 2022 (in millions) : Three Months Ended March 31, 2023 Driveline Metal Forming Total Sales $ 1,013.8 $ 619.1 $ 1,632.9 Less: Intersegment sales — 139.0 139.0 Net external sales $ 1,013.8 $ 480.1 $ 1,493.9 Segment Adjusted EBITDA $ 114.1 $ 61.3 $ 175.4 Three Months Ended March 31, 2022 Driveline Metal Forming Total Sales $ 1,045.4 $ 525.1 $ 1,570.5 Less: Intersegment sales — 134.3 134.3 Net external sales $ 1,045.4 $ 390.8 $ 1,436.2 Segment Adjusted EBITDA $ 122.8 $ 73.3 $ 196.1 |
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 months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in millions) Total segment adjusted EBITDA $ 175.4 $ 196.1 Interest expense (50.5) (44.7) Depreciation and amortization (124.9) (120.4) Restructuring and acquisition-related costs (4.8) (8.9) Unrealized loss on equity securities (0.3) (18.0) Debt refinancing and redemption costs — (5.6) Non-recurring items: Malvern Fire insurance recoveries, net — 5.5 Income (loss) before income taxes $ (5.1) $ 4.0 |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) | Mar. 31, 2023 Facilities Countries |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Facilities | Facilities | 80 |
Number of Countries in which Entity Operates | Countries | 18 |
Restructuring and Acquisition_3
Restructuring and Acquisition-Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve | $ 3.8 | $ 3.4 |
Charges | 4 | 7.2 |
Cash utilization | (3.2) | (7.4) |
Restructuring reserve | 4.6 | 3.2 |
Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve | 2.4 | 0.7 |
Charges | 0.3 | 1.3 |
Cash utilization | (0.7) | (0.8) |
Restructuring reserve | 2 | 1.2 |
Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve | 1.4 | 2.7 |
Charges | 3.7 | 5.9 |
Cash utilization | (2.5) | (6.6) |
Restructuring reserve | $ 2.6 | $ 2 |
Restructuring Reserve Narrative
Restructuring Reserve Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 22 Months Ended | 39 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 4 | $ 7.2 | |||
Minimum [Member] | Forecast [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 10 | ||||
Maximum [Member] | Forecast [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 20 | ||||
Driveline [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0.7 | ||||
Metal Forming [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 3.4 | ||||
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0.3 | 1.3 | |||
Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 3.7 | $ 5.9 | |||
2020 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 1.6 | $ 102.2 | |||
Emporium, Pennsylvannia | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2.1 | $ 14.2 | |||
Tekfor Group | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 0.3 |
Business Combinations, Separate
Business Combinations, Separately Recognized Transactions Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | ||
Acquisition related costs | $ 0 | $ 1.1 |
Integration expenses | 0.8 | 0.6 |
Total acquisition and integration charges | 0.8 | 1.7 |
Restructuring and acquisition-related costs | $ 4.8 | $ 8.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Raw materials and work-in-progress | $ 407.8 | $ 398.9 |
Finished goods | 88.5 | 92.5 |
Gross inventories | 496.3 | 491.4 |
Inventory valuation reserves | (31.7) | (27.5) |
Inventories, net | $ 464.6 | $ 463.9 |
Goodwill Rollforward (Details)
Goodwill Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 181.6 |
Foreign currency translation | 0.1 |
Goodwill | $ 181.7 |
Goodwill Narrative (Details)
Goodwill Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 1,435.5 |
Intangible Assets Table (Detail
Intangible Assets Table (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,115.7 | $ 1,115.5 | |
Accumulated Amortization | (520.6) | (499.3) | |
Net Carrying Amount | 595.1 | 616.2 | |
Amortization of intangible assets | 21.4 | $ 21.5 | |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Expense, Current Fiscal Year | 80 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 80 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 80 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 80 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 80 | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Expense, Current Fiscal Year | 85 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 85 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 85 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 85 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 85 | ||
Capitalized Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 52.4 | 52.2 | |
Accumulated Amortization | (44.6) | (43.2) | |
Net Carrying Amount | 7.8 | 9 | |
Customer Platforms - Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 856.2 | 856.2 | |
Accumulated Amortization | (380.6) | (364.7) | |
Net Carrying Amount | 475.6 | 491.5 | |
Customer Relationships - Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 53 | 53 | |
Accumulated Amortization | (20.5) | (19.7) | |
Net Carrying Amount | 32.5 | 33.3 | |
Technology-Based Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 154.1 | 154.1 | |
Accumulated Amortization | (74.9) | (71.7) | |
Net Carrying Amount | $ 79.2 | $ 82.4 |
Schedule of Long-Term Debt (Det
Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 11, 2022 |
Debt Instrument [Line Items] | |||
Total debt | $ 2,946.9 | $ 2,972.7 | |
Current portion of long-term debt | 49.6 | 75.9 | |
Long-term debt | 2,897.3 | 2,896.8 | |
Long-term debt, net | 2,847.7 | 2,845.1 | |
Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Secured Debt | 520 | 520 | $ 520 |
Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Secured Debt | 673.3 | 675 | |
6.875% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | 400 | 400 | |
6.50% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | 500 | 500 | |
6.25% Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | 180 | 180 | |
5.00% Notes due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | 600 | 600 | |
Total Debt Instruments excluding Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs | 49.6 | 51.7 | |
Multi Currency Credit Facility Member | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | 0 | 25 | |
Foreign Credit Facilities and Other | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 73.6 | $ 72.7 |
Senior Secured Credit Facilitie
Senior Secured Credit Facilities Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 11, 2022 | |
Debt Instrument [Line Items] | ||||
Payments of Revolving Credit Facility | $ 25 | $ 0 | ||
Payments of Debt Issuance Costs | 0 | 3.5 | ||
Term Loan A [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | 520 | $ 520 | $ 520 | |
Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | 673.3 | $ 675 | ||
Repayments of Secured Debt | 25 | |||
Multi Currency Credit Facility Member | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 891.2 | |||
Letters of Credit Outstanding, Amount | $ 33.8 | |||
Secured Debt [Member] | Amended and Restated Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Payments of Debt Restructuring Costs | 0.2 | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 1 | |||
Payments of Debt Issuance Costs | 3.5 | |||
Secured Debt [Member] | Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Write off of Deferred Debt Issuance Cost | $ 0.2 |
Other Debt Disclosures Narrativ
Other Debt Disclosures Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 6.60% | 6.60% | |
Unsecured Debt [Member] | 6.25% Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | ||
Repayments of Unsecured Debt | $ 220 | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 0.2 | ||
Write off of Deferred Debt Issuance Cost | 1.8 | ||
Redemption Premium | $ 3.4 | ||
Foreign Credit Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 73.6 | $ 72.7 | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 63.7 |
Derivatives Narrative (Details)
Derivatives Narrative (Details) € in Millions, $ in Millions | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) |
Foreign Currency Forward & Foreign Currency Option Contracts [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | $ 192.3 | $ 179.9 | ||
Currency Swap [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 216.6 | € 200 | $ 213.9 | € 200 |
Interest Rate Swaps Through Q3 2027 | Debt [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 700 | |||
Interest Rate Swap Q3 2027 Through Q4 2029 | Debt [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | $ 200 |
Schedule of Derivatives (Detail
Schedule of Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2024 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of goods sold | $ 1,333.3 | $ 1,249.4 | |
Other income (expense), net | 3.7 | (1) | |
Interest expense | (50.5) | (44.7) | |
Foreign Exchange Forward [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 2.1 | $ 1 | |
Description of Location of Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments in Financial Statements | Other income (expense), net | Other income (expense), net | |
Foreign Exchange Forward [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 | Cost of goods sold | |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | $ 3.3 | $ 1.2 | |
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 | $ 14.3 | ||
Currency Swap [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 | Other income (expense), net | |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | $ (2.7) | $ 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 | 0.3 | ||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Income Statement Location Gain (Loss) Reclassified from Accumulated OCI | Interest expense | Interest expense | |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | $ 0.6 | $ (2.9) | |
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 | $ 0.8 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
REE Automotive Ltd. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | $ 1.6 | |
Share Price | $ 0.33 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Carrying Value | $ 306.2 | $ 363.6 |
Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 1 [Member] | REE Automotive Ltd. | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 1.6 | 1.9 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contracts, Asset, Carrying and Fair Value Disclosure | 14.3 | 8.2 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contracts, Asset, Carrying and Fair Value Disclosure | 6.2 | 3 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contracts, Asset, Carrying and Fair Value Disclosure | 1.2 | 0.5 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other [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 Carrying and Fair Value | 1.1 | 2.4 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [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 Carrying and Fair Value | 3.5 | 8.5 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accrued expenses and other [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 Carrying and Fair Value | 0.3 | 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Postretirement benefits and other long-term liabilities [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 Carrying and Fair Value | 1.5 | 0 |
Currency Swap [Member] | Designated as Hedging Instrument [Member] | Postretirement benefits and other long-term liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contracts, Liability, Carrying and Fair Value Disclosure | $ 4.7 | $ 1.5 |
Fair Value of Debt (Details)
Fair Value of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 11, 2022 |
Multi Currency Credit Facility 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] | |||
Long-term Line of Credit | $ 0 | $ 25 | |
Multi Currency Credit Facility 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] | |||
Long-term Line of Credit | 0 | 25 | |
Term Loan A [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Secured Debt | 520 | 520 | $ 520 |
Term Loan A [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] | |||
Secured Debt | 520 | 520 | |
Term Loan A [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] | |||
Secured Debt | 509.6 | 510.3 | |
Term Loan B [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Secured Debt | 673.3 | 675 | |
Term Loan B [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] | |||
Secured Debt | 673.3 | 675 | |
Term Loan B [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] | |||
Secured Debt | 668.3 | 658.1 | |
6.875% Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unsecured Debt | 400 | 400 | |
6.875% Notes [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] | |||
Unsecured Debt | 400 | 400 | |
6.875% Notes [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] | |||
Unsecured Debt | 359.9 | 355.4 | |
6.50% Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unsecured Debt | 500 | 500 | |
6.50% Notes [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] | |||
Unsecured Debt | 500 | 500 | |
6.50% Notes [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] | |||
Unsecured Debt | 456.4 | 452.5 | |
6.25% Notes Due 2026 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unsecured Debt | 180 | 180 | |
6.25% Notes Due 2026 [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] | |||
Unsecured Debt | 180 | 180 | |
6.25% Notes Due 2026 [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] | |||
Unsecured Debt | 172.8 | 165.7 | |
5.00% Notes due 2029 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unsecured Debt | 600 | 600 | |
5.00% Notes due 2029 [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] | |||
Unsecured Debt | 600 | 600 | |
5.00% Notes due 2029 [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] | |||
Unsecured Debt | $ 499.5 | $ 474.9 |
Schedule of Employee Benefit Pl
Schedule of Employee Benefit Plans Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 0.3 | $ 0.5 |
Interest cost | 6 | 4.2 |
Expected asset return | (7.2) | (8) |
Amortized loss (gain) | 1 | 1.9 |
Net periodic benefit cost (credit) | 0.1 | (1.4) |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0 | 0.1 |
Interest cost | 2.5 | 2.1 |
Amortized loss (gain) | (2.1) | 0.1 |
Amortized prior service credit | (0.1) | (0.2) |
Net periodic benefit cost | $ 0.3 | $ 2.1 |
Employee Benefit Plans and Othe
Employee Benefit Plans and Other Postretirement Benefit Plans Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Liability, Defined Benefit Pension Plan, Noncurrent | $ 71.7 | $ 73.5 |
Liability, Other Postretirement Defined Benefit Plan, Noncurrent | 303.3 | $ 304.8 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 1 | |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 14.6 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Product Warranty Rollforward | ||
Beginning balance | $ 54.1 | $ 59.5 |
Accruals | 8.7 | 4 |
Payments | (1.8) | (3.1) |
Foreign currency translation | 0.4 | 0 |
Ending balance | $ 61.4 | $ 60.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income tax expense | $ 0 | $ 3 | |
Effective income tax rate, continuing operations | 0% | 75% | |
Other Tax Expense (Benefit) | $ 3.4 | ||
Assessed tax liability and interest, Notice of tax due | 10.1 | ||
Unrecognized tax benefit liability, including penalties and accrued interest | 32.8 | $ 40.5 | |
Minimum [Member] | |||
Income Tax Examination, Estimate of Possible Loss | 285 | ||
Maximum [Member] | |||
Income Tax Examination, Estimate of Possible Loss | $ 335 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator | ||
Net income (loss) | $ (5.1) | $ 1 |
Less: Net income attributable to participating securities | 0 | 0 |
Net income (loss) attributable to common shareholders - Basic and Dilutive | $ (5.1) | $ 1 |
Denominators | ||
Basic - Weighted-average shares outstanding | 119.8 | 118.8 |
Basic - Less: Weighted-average participating securities | (4.6) | (4.6) |
Basic - Weighted-average common shares outstanding | 115.2 | 114.2 |
Effect of dilutive securities - dilutive stock-based compensation | 0 | 0.5 |
Diluted - Adjusted weighted-average shares after assumed conversions | 115.2 | 114.7 |
Basic EPS | $ (0.04) | $ 0.01 |
Diluted EPS | $ (0.04) | $ 0.01 |
Earnings (Loss) Per Share - Ant
Earnings (Loss) Per Share - Antidilutive Shares (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2023 shares | |
Earnings Per Share [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.2 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Defined benefit plans, net current period other comprehensive income (loss) | [1] | $ (0.7) | $ 1.3 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 8.8 | 6 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | [2] | 2.5 | 15.7 |
Other comprehensive income | 10.6 | 23 | |
Cost of Sales [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (3.3) | (1.2) | |
Interest Expense [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (0.6) | 2.9 | |
Other Income [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 2.7 | (6) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax - Beginning balance | (146.9) | (241.9) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 0 | 0 | |
Income tax effect of other comprehensive income (loss) before reclassifications | 0 | 0 | |
Defined benefit plans, amounts reclassified from accumulated other comprehensive income (loss) | [3] | (1.2) | 1.8 |
Income taxes reclassified into net income | 0.5 | (0.5) | |
Defined benefit plans, net current period other comprehensive income (loss) | (0.7) | 1.3 | |
Accumulated other comprehensive income (loss), net of tax - Ending balance | (147.6) | (240.6) | |
Accumulated Foreign Currency Adjustment Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax - Beginning balance | (149.7) | (111.3) | |
Foreign currency translation adjustments, other comprehensive income (loss) arising during period | 8.8 | 6 | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 | |
Foreign currency translation adjustments, amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 8.8 | 6 | |
Accumulated other comprehensive income (loss), net of tax - Ending balance | (140.9) | (105.3) | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax - Beginning balance | 21.2 | (11.6) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 1.9 | 22.9 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | 2.2 | (3.5) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | [4] | (1.2) | (4.3) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | (0.4) | 0.6 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 2.5 | 15.7 | |
Accumulated other comprehensive income (loss), net of tax - Ending balance | 23.7 | 4.1 | |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax - Beginning balance | (275.4) | (364.8) | |
Other comprehensive income (loss) arising during period, total | 10.7 | 28.9 | |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 2.2 | (3.5) | |
Other comprehensive income (loss), reclassification before tax | (2.4) | (2.5) | |
Reclassification from AOCI, Current Period, Tax | 0.1 | 0.1 | |
Defined benefit plans, net current period other comprehensive income (loss) | (0.7) | 1.3 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 8.8 | 6 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 2.5 | 15.7 | |
Other comprehensive income | 10.6 | 23 | |
Accumulated other comprehensive income (loss), net of tax - Ending balance | $ (264.8) | $ (341.8) | |
[1]Amounts are net of tax of $0.5 million for the three months ended March 31, 2023 and $(0.5) million for the three months ended March 31, 2022.[2]Amounts are net of tax of $1.8 million for the three months ended March 31, 2023 and $(2.9) million for the three months ended March 31, 2022.[3]These amounts were reclassified from AOCI to Other income (expense), net for the three months ended March 31, 2023 and March 31, 2022.[4]The amounts reclassified from AOCI included $(3.3) million in cost of goods sold (COGS), $(0.6) million in interest expense and $2.7 million in Other income (expense), net for the three months ended March 31, 2023 and $(1.2) million in COGS, $2.9 million in interest expense and $(6.0) million in Other income (expense), net for the three months ended March 31, 2022. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,493.9 | $ 1,436.2 |
North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,111.5 | 1,127.2 |
Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 112.5 | 127.5 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 222.7 | 165 |
South America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 47.2 | 16.5 |
Driveline [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,013.8 | 1,045.4 |
Driveline [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 783 | 808.6 |
Driveline [Member] | Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 105.8 | 117 |
Driveline [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 99.8 | 105.8 |
Driveline [Member] | South America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 25.2 | 14 |
Metal Forming [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 480.1 | 390.8 |
Metal Forming [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 328.5 | 318.6 |
Metal Forming [Member] | Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 6.7 | 10.5 |
Metal Forming [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 122.9 | 59.2 |
Metal Forming [Member] | South America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 22 | $ 2.5 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accounts receivable, net | $ 892.1 | $ 820.2 | |
Deferred revenue, current | 26.9 | 28.1 | |
Deferred revenue, noncurrent | 68.5 | $ 73.4 | |
Increase (decrease) in accounts receivable | 71.9 | ||
Contract liability, current, increase (decrease) | (1.2) | ||
Contract liability, noncurrent, increase (decrease) | (4.9) | ||
Contract with customer, liability, revenue recognized | $ 7.6 | $ 7.9 |
Acquisitions - Tekfor (Details)
Acquisitions - Tekfor (Details) - Tekfor Group - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | |
Jun. 01, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Business Acquisition, Name of Acquired Entity | Tekfor Group | ||
Business Combination, Consideration Transferred | $ 94.4 | ||
Business Acquisition, Description of Acquired Entity | Tekfor Group manufactures high-performance components, modules and fasteners, including traditional powertrain and driveline components (for both internal combustion and hybrid applications), and e-mobility components. Our acquisition of Tekfor contributes to diversifying our geographic and customer sales mix, while also increasing our electrification product portfolio. | ||
Cash and cash equivalents | $ 14.3 | ||
Accounts receivable | 33.7 | ||
Inventories | 46.3 | ||
Prepaid expenses and other long-term assets | 30.1 | ||
Deferred income tax assets | 5 | ||
Property, plant and equipment | 105.5 | ||
Total assets acquired | 234.9 | ||
Accounts payable | 33.5 | ||
Accrued expenses and other | 28.1 | ||
Debt | 23.4 | ||
Postretirement benefits and other long-term liabilities | 41.9 | ||
Net assets acquired | $ 108 | ||
Gain on bargain purchase of business | $ 13.6 | ||
Business Combination, Bargain Purchase, Gain Recognized, Description | The gain on bargain purchase of business was primarily the result of macroeconomic factors such as the supply chain disruptions impacting the automotive industry, including the conflict between Russia and Ukraine, the semiconductor supply shortage, and increasing input costs, including materials, freight and utilities. | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 101 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (4) |
Acquisitions - Pro Forma (Detai
Acquisitions - Pro Forma (Details) - Tekfor Group $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) $ / shares | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Business Acquisition, Pro Forma Revenue | $ 1,500 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 1 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ / shares | $ 0.01 |
Manufacturing Facility Fire a_2
Manufacturing Facility Fire and Insurance Recovery (Details) - USD ($) $ in Millions | 3 Months Ended | 30 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | |
Insurance Recoveries [Abstract] | |||
Proceeds from Insurance Settlement, Operating and Investing Activities | $ 24 | ||
Proceeds from Insurance Settlement, Operating Activities | 7 | $ 3.6 | |
Proceeds from Insurance Settlement, Investing Activities | $ 17 | 0 | |
Insurance Deductible Expense | $ 1 | ||
Business interruption charges | 0.7 | ||
Insurance Recoveries Estimated | 6.2 | ||
Gain (Loss) Related to Insurance Settlement | $ 5.5 |
Sales and Segment Adjusted EBIT
Sales and Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 1,632.9 | $ 1,570.5 |
Less: intersegment sales | 139 | 134.3 |
Net external sales | 1,493.9 | 1,436.2 |
Segment Adjusted EBITDA | 175.4 | 196.1 |
Driveline [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 1,013.8 | 1,045.4 |
Less: intersegment sales | 0 | 0 |
Net external sales | 1,013.8 | 1,045.4 |
Segment Adjusted EBITDA | 114.1 | 122.8 |
Metal Forming [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 619.1 | 525.1 |
Less: intersegment sales | 139 | 134.3 |
Net external sales | 480.1 | 390.8 |
Segment Adjusted EBITDA | $ 61.3 | $ 73.3 |
Reconciliation of Total Segment
Reconciliation of Total Segment Adjusted EBITDA to Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total segment adjusted EBITDA | $ 175.4 | $ 196.1 |
Interest expense | (50.5) | (44.7) |
Depreciation and amortization | (124.9) | (120.4) |
Restructuring and acquisition-related costs | (4.8) | (8.9) |
Unrealized loss on equity securities | (0.3) | (18) |
Debt refinancing and redemption costs | 0 | (5.6) |
Malvern Fire insurance recoveries, net | 0 | 5.5 |
Income (loss) before income taxes | $ (5.1) | $ 4 |