GUARANTOR SUBSIDIARIES | 3 Months Ended |
Mar. 31, 2014 |
GUARANTOR SUBSIDIARIES | ' |
Note 19—GUARANTOR SUBSIDIARIES: |
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The 2015 Notes and 2019 Notes (together, the “Notes”) are jointly and severally, fully and unconditionally (subject to the customary exceptions discussed below) guaranteed by several 100% owned subsidiaries (the “Guarantor Subsidiaries”) of RTI International Metals, Inc. (the “Parent”). Each Guarantor Subsidiary would be automatically released from its guarantee of the Notes if either (i) it ceased to be a guarantor under the Parent’s Credit Agreement or (ii) it ceased to be a direct or indirect subsidiary of the Parent. Separate financial statements of the Parent and each of the Guarantor Subsidiaries are not presented because the guarantees are full and unconditional (subject to the aforementioned customary exceptions) and the Guarantor Subsidiaries are jointly and severally liable. The Company believes separate financial statements and other disclosures concerning the Guarantor Subsidiaries would not be material to investors in the Notes. |
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There are no current restrictions on the ability of the Guarantor Subsidiaries to make payments under the guarantees referred to above, except, however, the obligations of each Subsidiary Guarantor under its guarantee will be limited to the maximum amount as will result in obligations of such Subsidiary Guarantor under its guarantee not constituting a fraudulent conveyance or fraudulent transfer for purposes of bankruptcy law, the Uniform Conveyance Act, the Uniform Fraudulent Transfer Act, or any similar Federal or state law. |
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The Condensed Consolidating Statement of Operations for the three months ended March 31, 2013 has been revised and restated for the correction of an error in the calculation of revenues and cost of sales related to contracts requiring the application of the percentage-of-completion revenue recognition methodology under ASC 605-35 and to correct the provision for income taxes related to the establishment of a full valuation allowance against the Company’s Canadian net deferred tax asset. The following table presents the Condensed Consolidating Statement of Operations as filed in the Company’s Amended Quarterly Report on Form 10-Q for the three months ended March 31, 2013 as filed with the SEC on September 24, 2013 and the restated balances as filed in the Annual Report. The revision and restatement impacts mainly revenues, cost of sales, the provision for income taxes, and all related subtotals for the non-guarantor subsidiaries. The non-guarantor subsidiary results have also been recast for the presentation of RTI Connecticut as a discontinued operation. Refer to Note 3 for details of restatement and revision adjustments. The revision and restatement adjustments had no impact on the Condensed Consolidating Statement of Cash Flows for the months ended March 31, 2013. |
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| | RTI International | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
Metals, Inc. |
| | Previously | | | As | | | Previously | | | As | | | Previously | | | As | | | Previously | | | As | | | Previously | | | As | |
Reported (1) | Restated | Reported (1) | Restated | Reported (1) | Restated | Reported (1) | Restated | Reported (1) | Restated |
Net sales | | $ | — | | | $ | — | | | $ | 136,173 | | | $ | 136,173 | | | $ | 106,162 | | | $ | 103,464 | | | $ | (50,435 | ) | | $ | (50,435 | ) | | $ | 191,900 | | | $ | 189,202 | |
Cost of sales | | | — | | | | — | | | | 113,470 | | | | 113,470 | | | | 88,951 | | | | 86,914 | | | | (50,435 | ) | | $ | (50,435 | ) | | | 151,986 | | | | 149,949 | |
Selling, general, and administrative expenses | | | 1,213 | | | | 1,213 | | | | 11,708 | | | | 11,708 | | | | 11,987 | | | | 11,684 | | | | — | | | | — | | | | 24,908 | | | | 24,605 | |
Research, technical, and product development expenses | | | — | | | | — | | | | 1,001 | | | | 1,001 | | | | — | | | | — | | | | — | | | | — | | | | 1,001 | | | | 1,001 | |
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Operating income (loss) | | | (1,213 | ) | | | (1,213 | ) | | | 9,994 | | | | 9,994 | | | | 5,224 | | | | 4,866 | | | | — | | | | — | | | | 14,005 | | | | 13,647 | |
Other income (expense), net | | | 4,277 | | | | 4,277 | | | | (2,384 | ) | | | (2,384 | ) | | | (1,334 | ) | | | (1,334 | ) | | | — | | | | — | | | | 559 | | | | 559 | |
Interest income (expense), net | | | (4,417 | ) | | | (4,417 | ) | | | 29 | | | | 29 | | | | (377 | ) | | | (377 | ) | | | — | | | | — | | | | (4,765 | ) | | | (4,765 | ) |
Equity in earnings of subsidiaries | | | 7,175 | | | | 5,646 | | | | (373 | ) | | | (373 | ) | | | 106 | | | | 106 | | | | (6,908 | ) | | | (5,379 | ) | | | — | | | | — | |
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Income before income taxes | | | 5,822 | | | | 4,293 | | | | 7,266 | | | | 7,266 | | | | 3,619 | | | | 3,261 | | | | (6,908 | ) | | | (5,379 | ) | | | 9,799 | | | | 9,441 | |
Provision for (benefit from) income taxes | | | (995 | ) | | | (675 | ) | | | 2,775 | | | | 2,775 | | | | 1,202 | | | | 2,373 | | | | — | | | | — | | | | 2,982 | | | | 4,473 | |
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Net income attributable to continuing operations | | | 6,817 | | | | 4,968 | | | | 4,491 | | | | 4,491 | | | | 2,417 | | | | 888 | | | | (6,908 | ) | | | (5,379 | ) | | | 6,817 | | | | 4,968 | |
Net income (loss) attributable to discontinued operations, net of tax | | | 151 | | | | (83 | ) | | | — | | | | — | | | | 151 | | | | (83 | ) | | | (151 | ) | | | 83 | | | | 151 | | | | (83 | ) |
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Net income | | $ | 6,968 | | | $ | 4,885 | | | $ | 4,491 | | | $ | 4,491 | | | $ | 2,568 | | | $ | 805 | | | $ | (7,059 | ) | | $ | (5,296 | ) | | $ | 6,968 | | | $ | 4,885 | |
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Comprehensive income | | $ | 10,980 | | | $ | 9,500 | | | $ | 10,665 | | | $ | 10,665 | | | $ | (244 | ) | | $ | (1,404 | ) | | $ | (10,421 | ) | | $ | (9,261 | ) | | $ | 10,980 | | | $ | 9,500 | |
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(1): | Previously reported balances represent the amounts reported in the Condensed Consolidating Statement of Operations in the Company’s Amended Quarterly Report on Form 10-Q/A for the quarterly period ended March 31, 2013 as filed with the SEC on September 24, 2013. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following tables present Condensed Consolidating Financial Statements as of March 31, 2014 and December 31, 2013 and for the three months ended March 31, 2014 and 2013: |
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Condensed Consolidating Statement of Operations and Comprehensive Income |
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Three Months Ended March 31, 2014 |
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| | RTI International | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | | | | | | | | | | | | | | | | | | | | | |
Metals, Inc. | Subsidiaries | Subsidiaries | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | — | | | $ | 114,123 | | | $ | 114,289 | | | $ | (53,867 | ) | | $ | 174,545 | | | | | | | | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales | | | — | | | | 102,120 | | | | 97,823 | | | | (53,867 | ) | | | 146,076 | | | | | | | | | | | | | | | | | | | | | |
Selling, general, and administrative expenses (1) | | | 947 | | | | 12,158 | | | | 12,763 | | | | — | | | | 25,868 | | | | | | | | | | | | | | | | | | | | | |
Research, technical, and product development expenses | | | — | | | | 984 | | | | — | | | | — | | | | 984 | | | | | | | | | | | | | | | | | | | | | |
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Operating income | | | (947 | ) | | | (1,139 | ) | | | 3,703 | | | | — | | | | 1,617 | | | | | | | | | | | | | | | | | | | | | |
Other income (expense), net | | | 1,490 | | | | (838 | ) | | | (117 | ) | | | — | | | | 535 | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense), net | | | (5,815 | ) | | | (1,202 | ) | | | (540 | ) | | | — | | | | (7,557 | ) | | | | | | | | | | | | | | | | | | | | |
Equity in earnings of subsidiaries | | | 1,458 | | | | 348 | | | | 975 | | | | (2,781 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
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Income before income taxes | | | (3,814 | ) | | | (2,831 | ) | | | 4,021 | | | | (2,781 | ) | | | (5,405 | ) | | | | | | | | | | | | | | | | | | | | |
Provision for (benefit from) income taxes | | | 2 | | | | (1,530 | ) | | | (61 | ) | | | — | | | | (1,589 | ) | | | | | | | | | | | | | | | | | | | | |
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Net income (loss) attributable to continuing operations | | $ | (3,816 | ) | | $ | (1,301 | ) | | $ | 4,082 | | | $ | (2,781 | ) | | $ | (3,816 | ) | | | | | | | | | | | | | | | | | | | | |
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Net income (loss) attributable to discontinued operations, net of tax | | $ | (365 | ) | | $ | — | | | $ | (365 | ) | | $ | 365 | | | $ | (365 | ) | | | | | | | | | | | | | | | | | | | | |
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Net income (loss) | | $ | (4,181 | ) | | $ | (1,301 | ) | | $ | 3,717 | | | $ | (2,416 | ) | | $ | (4,181 | ) | | | | | | | | | | | | | | | | | | | | |
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Comprehensive income (loss) | | $ | (7,195 | ) | | $ | (346 | ) | | $ | (376 | ) | | $ | 722 | | | $ | (7,195 | ) | | | | | | | | | | | | | | | | | | | | |
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-1 | The Parent allocates selling, general, and administrative expenses (“SG&A”) to the subsidiaries based upon its budgeted annual expenses. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Statement of Operations and Comprehensive Income |
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Three Months Ended March 31, 2013 |
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| | RTI International | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | | | | | | | | | | | | | | | | | | | | | |
Metals, Inc. | Subsidiaries | Subsidiaries | (As Restated) | (As Restated) | | | | | | | | | | | | | | | | | | | | |
(As Restated) | (As Restated) | (As Restated) | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | — | | | $ | 136,173 | | | $ | 103,464 | | | $ | (50,435 | ) | | $ | 189,202 | | | | | | | | | | | | | | | | | | | | | |
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Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales | | | — | | | | 113,470 | | | | 86,914 | | | | (50,435 | ) | | | 149,949 | | | | | | | | | | | | | | | | | | | | | |
Selling, general, and administrative expenses (1) | | | 1,213 | | | | 11,708 | | | | 11,684 | | | | — | | | | 24,605 | | | | | | | | | | | | | | | | | | | | | |
Research, technical, and product development expenses | | | — | | | | 1,001 | | | | — | | | | — | | | | 1,001 | | | | | | | | | | | | | | | | | | | | | |
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Operating income | | | (1,213 | ) | | | 9,994 | | | | 4,866 | | | | — | | | | 13,647 | | | | | | | | | | | | | | | | | | | | | |
Other income (expense) | | | 4,277 | | | | (2,384 | ) | | | (1,334 | ) | | | — | | | | 559 | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense), net | | | (4,417 | ) | | | 29 | | | | (377 | ) | | | — | | | | (4,765 | ) | | | | | | | | | | | | | | | | | | | | |
Equity in earnings of subsidiaries | | | 5,646 | | | | (373 | ) | | | 106 | | | | (5,379 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
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Income before income taxes | | | 4,293 | | | | 7,266 | | | | 3,261 | | | | (5,379 | ) | | | 9,441 | | | | | | | | | | | | | | | | | | | | | |
Provision for (benefit from) income taxes | | | (675 | ) | | | 2,775 | | | | 2,373 | | | | — | | | | 4,473 | | | | | | | | | | | | | | | | | | | | | |
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Net income attributable to continuing operations | | $ | 4,968 | | | $ | 4,491 | | | $ | 888 | | | $ | (5,379 | ) | | $ | 4,968 | | | | | | | | | | | | | | | | | | | | | |
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Net loss attributable to discontinued operations, net of tax | | $ | (83 | ) | | $ | — | | | $ | (83 | ) | | $ | 83 | | | $ | (83 | ) | | | | | | | | | | | | | | | | | | | | |
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Net income | | $ | 4,885 | | | $ | 4,491 | | | $ | 805 | | | $ | (5,296 | ) | | $ | 4,885 | | | | | | | | | | | | | | | | | | | | | |
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Comprehensive income (loss) | | $ | 9,500 | | | $ | 10,665 | | | $ | (1,404 | ) | | $ | (9,261 | ) | | $ | 9,500 | | | | | | | | | | | | | | | | | | | | | |
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-1 | The Parent allocates SG&A to the subsidiaries based upon its budgeted annual expenses. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Balance Sheet |
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As of March 31, 2014 |
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| | RTI | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | | | | | | | | | | | | | | | | | | | | | |
International | Subsidiaries | Subsidiaries | | | | | | | | | | | | | | | | | | | | |
Metals, Inc. | | | | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | | $ | 136,217 | | | $ | 31,691 | | | $ | — | | | $ | 167,908 | | | | | | | | | | | | | | | | | | | | | |
Short-term investments | | | — | | | | 128,197 | | | | — | | | | — | | | | 128,197 | | | | | | | | | | | | | | | | | | | | | |
Receivables, net | | | 1,153 | | | | 62,289 | | | | 72,573 | | | | (28,316 | ) | | | 107,699 | | | | | | | | | | | | | | | | | | | | | |
Inventories, net | | | — | | | | 277,630 | | | | 174,543 | | | | — | | | | 452,173 | | | | | | | | | | | | | | | | | | | | | |
Cost in excess of billings | | | — | | | | 4,323 | | | | 3,215 | | | | — | | | | 7,538 | | | | | | | | | | | | | | | | | | | | | |
Deferred income taxes | | | 27,193 | | | | 2,580 | | | | 2,267 | | | | — | | | | 32,040 | | | | | | | | | | | | | | | | | | | | | |
Assets of discontinued operations | | | — | | | | — | | | | 1,460 | | | | — | | | | 1,460 | | | | | | | | | | | | | | | | | | | | | |
Other current assets | | | 11,653 | | | | 2,786 | | | | 5,985 | | | | — | | | | 20,424 | | | | | | | | | | | | | | | | | | | | | |
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Total current assets | | | 39,999 | | | | 614,022 | | | | 291,734 | | | | (28,316 | ) | | | 917,439 | | | | | | | | | | | | | | | | | | | | | |
Property, plant, and equipment, net | | | 2,407 | | | | 288,374 | | | | 80,669 | | | | — | | | | 371,450 | | | | | | | | | | | | | | | | | | | | | |
Goodwill | | | — | | | | 80,558 | | | | 49,696 | | | | — | | | | 130,254 | | | | | | | | | | | | | | | | | | | | | |
Other intangible assets, net | | | — | | | | 30,611 | | | | 26,905 | | | | — | | | | 57,516 | | | | | | | | | | | | | | | | | | | | | |
Other noncurrent assets | | | 10,570 | | | | 7,184 | | | | 5,930 | | | | — | | | | 23,684 | | | | | | | | | | | | | | | | | | | | | |
Intercompany investments | | | 1,244,394 | | | | 26,971 | | | | 6,696 | | | | (1,278,061 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
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Total assets | | $ | 1,297,370 | | | $ | 1,047,720 | | | $ | 461,630 | | | $ | (1,306,377 | ) | | $ | 1,500,343 | | | | | | | | | | | | | | | | | | | | | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable | | $ | 1,825 | | | $ | 57,136 | | | $ | 50,536 | | | $ | (28,316 | ) | | $ | 81,181 | | | | | | | | | | | | | | | | | | | | | |
Accrued wages and other employee costs | | | 4,242 | | | | 11,994 | | | | 6,854 | | | | — | | | | 23,090 | | | | | | | | | | | | | | | | | | | | | |
Unearned revenue | | | — | | | | — | | | | 16,632 | | | | — | | | | 16,632 | | | | | | | | | | | | | | | | | | | | | |
Other accrued liabilities | | | 12,636 | | | | 3,854 | | | | 7,857 | | | | — | | | | 24,347 | | | | | | | | | | | | | | | | | | | | | |
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Total current liabilities | | | 18,703 | | | | 72,984 | | | | 81,879 | | | | (28,316 | ) | | | 145,250 | | | | | | | | | | | | | | | | | | | | | |
Long-term debt | | | 427,036 | | | | 493 | | | | 6,680 | | | | — | | | | 434,209 | | | | | | | | | | | | | | | | | | | | | |
Intercompany debt | | | — | | | | 327,477 | | | | 137,369 | | | | (464,846 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
Liability for post-retirement benefits | | | — | | | | 43,640 | | | | — | | | | — | | | | 43,640 | | | | | | | | | | | | | | | | | | | | | |
Liability for pension benefits | | | 6,040 | | | | 7,255 | | | | 159 | | | | — | | | | 13,454 | | | | | | | | | | | | | | | | | | | | | |
Deferred income taxes | | | 70,595 | | | | — | | | | 4,071 | | | | — | | | | 74,666 | | | | | | | | | | | | | | | | | | | | | |
Unearned revenue | | | — | | | | — | | | | 10,204 | | | | — | | | | 10,204 | | | | | | | | | | | | | | | | | | | | | |
Other noncurrent liabilities | | | 7,394 | | | | 3,658 | | | | 266 | | | | — | | | | 11,318 | | | | | | | | | | | | | | | | | | | | | |
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Total liabilities | | | 529,768 | | | | 455,507 | | | | 240,628 | | | | (493,162 | ) | | | 732,741 | | | | | | | | | | | | | | | | | | | | | |
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Shareholders’ equity | | | 767,602 | | | | 592,213 | | | | 221,002 | | | | (813,215 | ) | | | 767,602 | | | | | | | | | | | | | | | | | | | | | |
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Total liabilities and shareholders’ equity | | $ | 1,297,370 | | | $ | 1,047,720 | | | $ | 461,630 | | | $ | (1,306,377 | ) | | $ | 1,500,343 | | | | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Balance Sheet |
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As of December 31, 2013 |
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| | RTI International | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | | | | | | | | | | | | | | | | | | | | | |
Metals, Inc. | Subsidiaries | Subsidiaries | | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | | $ | 312,202 | | | $ | 31,435 | | | $ | — | | | $ | 343,637 | | | | | | | | | | | | | | | | | | | | | |
Receivables, net | | | 786 | | | | 57,397 | | | | 69,847 | | | | (22,759 | ) | | | 105,271 | | | | | | | | | | | | | | | | | | | | | |
Inventories, net | | | — | | | | 265,621 | | | | 164,467 | | | | — | | | | 430,088 | | | | | | | | | | | | | | | | | | | | | |
Costs in excess of billings | | | — | | | | 3,800 | | | | 1,577 | | | | — | | | | 5,377 | | | | | | | | | | | | | | | | | | | | | |
Deferred income taxes | | | 31,656 | | | | — | | | | 376 | | | | — | | | | 32,032 | | | | | | | | | | | | | | | | | | | | | |
Assets of discontinued operations | | | — | | | | — | | | | 5,274 | | | | — | | | | 5,274 | | | | | | | | | | | | | | | | | | | | | |
Other current assets | | | 9,425 | | | | 2,984 | | | | 4,538 | | | | — | | | | 16,947 | | | | | | | | | | | | | | | | | | | | | |
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Total current assets | | | 41,867 | | | | 642,004 | | | | 277,514 | | | | (22,759 | ) | | | 938,626 | | | | | | | | | | | | | | | | | | | | | |
Property, plant, and equipment, net | | | 2,328 | | | | 292,033 | | | | 77,979 | | | | — | | | | 372,340 | | | | | | | | | | | | | | | | | | | | | |
Goodwill | | | — | | | | 79,705 | | | | 37,873 | | | | — | | | | 117,578 | | | | | | | | | | | | | | | | | | | | | |
Other intangible assets, net | | | — | | | | 31,184 | | | | 22,570 | | | | — | | | | 53,754 | | | | | | | | | | | | | | | | | | | | | |
Other noncurrent assets | | | 11,025 | | | | 7,184 | | | | 5,038 | | | | — | | | | 23,247 | | | | | | | | | | | | | | | | | | | | | |
Intercompany investments | | | 1,240,671 | | | | 26,623 | | | | 5,721 | | | | (1,273,015 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
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Total assets | | $ | 1,295,891 | | | $ | 1,078,733 | | | $ | 426,695 | | | $ | (1,295,774 | ) | | $ | 1,505,545 | | | | | | | | | | | | | | | | | | | | | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable | | $ | 1,948 | | | $ | 54,111 | | | $ | 45,739 | | | $ | (22,759 | ) | | $ | 79,039 | | | | | | | | | | | | | | | | | | | | | |
Accrued wages and other employee costs | | | 6,598 | | | | 14,093 | | | | 9,096 | | | | — | | | | 29,787 | | | | | | | | | | | | | | | | | | | | | |
Unearned revenue | | | — | | | | 288 | | | | 15,337 | | | | — | | | | 15,625 | | | | | | | | | | | | | | | | | | | | | |
Liabilities of discontinued operations | | | — | | | | — | | | | 458 | | | | — | | | | 458 | | | | | | | | | | | | | | | | | | | | | |
Other accrued liabilities | | | 6,800 | | | | 5,101 | | | | 10,673 | | | | | | | | 22,574 | | | | | | | | | | | | | | | | | | | | | |
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Total current liabilities | | | 15,346 | | | | 73,593 | | | | 81,303 | | | | (22,759 | ) | | | 147,483 | | | | | | | | | | | | | | | | | | | | | |
Long-term debt | | | 422,634 | | | | 738 | | | | 6,928 | | | | — | | | | 430,300 | | | | | | | | | | | | | | | | | | | | | |
Intercompany debt | | | — | | | | 357,144 | | | | 106,633 | | | | (463,777 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
Liability for post-retirement benefits | | | — | | | | 43,447 | | | | — | | | | — | | | | 43,447 | | | | | | | | | | | | | | | | | | | | | |
Liability for pension benefits | | | 5,943 | | | | 7,685 | | | | 159 | | | | — | | | | 13,787 | | | | | | | | | | | | | | | | | | | | | |
Deferred income taxes | | | 70,006 | | | | — | | | | 4,072 | | | | — | | | | 74,078 | | | | | | | | | | | | | | | | | | | | | |
Unearned revenue | | | — | | | | — | | | | 10,470 | | | | — | | | | 10,470 | | | | | | | | | | | | | | | | | | | | | |
Other noncurrent liabilities | | | 7,988 | | | | 3,763 | | | | 255 | | | | — | | | | 12,006 | | | | | | | | | | | | | | | | | | | | | |
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Total liabilities | | | 521,917 | | | | 486,370 | | | | 209,820 | | | | (486,536 | ) | | | 731,571 | | | | | | | | | | | | | | | | | | | | | |
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Shareholders’ equity | | | 773,974 | | | | 592,363 | | | | 216,875 | | | | (809,238 | ) | | | 773,974 | | | | | | | | | | | | | | | | | | | | | |
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Total liabilities and shareholders’ equity | | $ | 1,295,891 | | | $ | 1,078,733 | | | $ | 426,695 | | | $ | (1,295,774 | ) | | $ | 1,505,545 | | | | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Statement of Cash Flows |
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Three Months Ended March 31, 2014 |
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| | RTI International | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | | | | | | | | | | | | | | | | | | | | | |
Metals, Inc. | Subsidiaries | Subsidiaries | | | | | | | | | | | | | | | | | | | | |
Cash provided by (used in) operating activities | | $ | 1,279 | | | $ | (13,239 | ) | | $ | (8,755 | ) | | $ | — | | | $ | (20,715 | ) | | | | | | | | | | | | | | | | | | | | |
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Investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in subsidiaries, net | | | — | | | | (852 | ) | | | 852 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | |
Acquisitions, net of cash acquired | | | — | | | | — | | | | (21,797 | ) | | | — | | | | (21,797 | ) | | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | | (43 | ) | | | (4,026 | ) | | | (2,781 | ) | | | — | | | | (6,850 | ) | | | | | | | | | | | | | | | | | | | | |
Short-term investments, net | | | — | | | | (128,216 | ) | | | — | | | | — | | | | (128,216 | ) | | | | | | | | | | | | | | | | | | | | |
Divestitures | | | — | | | | — | | | | 3,281 | | | | — | | | | 3,281 | | | | | | | | | | | | | | | | | | | | | |
Intercompany debt activity, net | | | (1,120 | ) | | | — | | | | 30,761 | | | | (29,641 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
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Cash provided by (used in) investing activities | | | (1,163 | ) | | | (133,094 | ) | | | 10,316 | | | | (29,641 | ) | | | (153,582 | ) | | | | | | | | | | | | | | | | | | | | |
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Financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from exercise of employee stock options | | | 539 | | | | — | | | | — | | | | — | | | | 539 | | | | | | | | | | | | | | | | | | | | | |
Excess tax benefits from stock-based compensation activity | | | 195 | | | | — | | | | — | | | | — | | | | 195 | | | | | | | | | | | | | | | | | | | | | |
Parent company investments, net | | | — | | | | 234 | | | | (234 | ) | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | |
Repayments on long-term debt | | | — | | | | (245 | ) | | | (239 | ) | | | — | | | | (484 | ) | | | | | | | | | | | | | | | | | | | | |
Intercompany debt activity, net | | | — | | | | (29,641 | ) | | | — | | | | 29,641 | | | | — | | | | | | | | | | | | | | | | | | | | | |
Purchase of common stock held in treasury | | | (850 | ) | | | — | | | | — | | | | — | | | | (850 | ) | | | | | | | | | | | | | | | | | | | | |
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Cash provided by (used in) financing activities | | | (116 | ) | | | (29,652 | ) | | | (473 | ) | | | 29,641 | | | | (600 | ) | | | | | | | | | | | | | | | | | | | | |
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Effect of exchange rate changes on cash and cash equivalents | | | — | | | | — | | | | (832 | ) | | | — | | | | (832 | ) | | | | | | | | | | | | | | | | | | | | |
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Increase (decrease) in cash and cash equivalents | | | — | | | | (175,985 | ) | | | 256 | | | | — | | | | (175,729 | ) | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at beginning of period | | | — | | | | 312,202 | | | | 31,435 | | | | — | | | | 343,637 | | | | | | | | | | | | | | | | | | | | | |
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Cash and cash equivalents at end of period | | $ | — | | | $ | 136,217 | | | $ | 31,691 | | | $ | — | | | $ | 167,908 | | | | | | | | | | | | | | | | | | | | | |
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Condensed Consolidating Statement of Cash Flows |
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Three Months Ended March 31, 2013 |
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| | RTI International | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | | | | | | | | | | | | | | | | | | | | | |
Metals, Inc. | Subsidiaries | Subsidiaries | | | | | | | | | | | | | | | | | | | | |
Cash provided by (used in) operating activities | | $ | 6,727 | | | $ | (21,290 | ) | | $ | (16,160 | ) | | $ | — | | | $ | (30,723 | ) | | | | | | | | | | | | | | | | | | | | |
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Investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisitions, net of cash acquired | | | — | | | | — | | | | — | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | |
Investments in subsidiaries, net | | | (2,300 | ) | | | — | | | | — | | | | 2,300 | | | | — | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | | (220 | ) | | | (6,420 | ) | | | (2,520 | ) | | | | | | | (9,160 | ) | | | | | | | | | | | | | | | | | | | | |
Investments, net | | | — | | | | — | | | | — | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | |
Intercompany debt activity, net (1) | | | (5,283 | ) | | | — | | | | 14,069 | | | | (8,786 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
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Cash provided by (used in) investing activities | | | (7,803 | ) | | | (6,420 | ) | | | 11,549 | | | | (6,486 | ) | | | (9,160 | ) | | | | | | | | | | | | | | | | | | | | |
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Financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from exercise of employee stock options | | | 1,239 | | | | — | | | | — | | | | — | | | | 1,239 | | | | | | | | | | | | | | | | | | | | | |
Excess tax benefits from stock-based compensation activity | | | 236 | | | | — | | | | — | | | | — | | | | 236 | | | | | | | | | | | | | | | | | | | | | |
Parent company investments/dividends, net | | | — | | | | 34 | | | | 2,266 | | | | (2,300 | ) | | | — | | | | | | | | | | | | | | | | | | | | | |
Repayments on long-term debt | | | — | | | | (220 | ) | | | — | | | | — | | | | (220 | ) | | | | | | | | | | | | | | | | | | | | |
Intercompany debt activity, net (1) | | | — | | | | (8,786 | ) | | | — | | | | 8,786 | | | | — | | | | | | | | | | | | | | | | | | | | | |
Purchase of common stock held in treasury | | | (399 | ) | | | — | | | | — | | | | — | | | | (399 | ) | | | | | | | | | | | | | | | | | | | | |
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Cash provided by (used in) financing activities | | | 1,076 | | | | (8,972 | ) | | | 2,266 | | | | 6,486 | | | | 856 | | | | | | | | | | | | | | | | | | | | | |
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Effect of exchange rate changes on cash and cash equivalents | | | — | | | | — | | | | (148 | ) | | | — | | | | (148 | ) | | | | | | | | | | | | | | | | | | | | |
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Increase (decrease) in cash and cash equivalents | | | — | | | | (36,682 | ) | | | (2,493 | ) | | | — | | | | (39,175 | ) | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at beginning of period | | | | | | | 87,283 | | | | 9,907 | | | | — | | | | 97,190 | | | | | | | | | | | | | | | | | | | | | |
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Cash and cash equivalents at end of period | | $ | — | | | $ | 50,601 | | | $ | 7,414 | | | $ | — | | | $ | 58,015 | | | | | | | | | | | | | | | | | | | | | |
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(1): | The Condensed Consolidating Statements of Cash Flows have been adjusted to reclassify intercompany debt activities between investing and financing activities, rather than entirely as financing activities as previously reported. These adjustments increased (decreased) cash flows from investing activities for the RTI International Metals, Inc. Parent Company, Non-Guarantor Subsidiaries, and Eliminations by $(5,283), $14,069, and $(8,786) and increased (decreased) cash flows from financing activities for the RTI International Metals, Inc. Parent Company, Non-Guarantor Subsidiaries, and Eliminations by $5,283, $(14,069), and $8,786, respectively. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |