Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors | Note 13. Selected Condensed Consolidating Financial Statements of Parent, Issuer, Guarantors and Non-Guarantors The 2024 Notes, the 2025 Notes, the 2026 Notes, the 2027 Notes, the 2028 Notes and the 2029 Notes (the “ Notes Issuer Subsidiary Guarantors Parent In accordance with GAAP, we retrospectively account for changes in our legal structure that constitute transfers of businesses between issuers, guarantors and non-guarantors. As such, our prior period financials may vary from those previously reported. The information in the tables reflect such revisions, as well as revisions to correct immaterial errors in the prior presentation of our financial statements. In accordance with Rule 3-10 of Regulation S-X, the following tables present condensed consolidating financial data of the Parent, the Issuer, the Subsidiary Guarantors, the non-guarantor subsidiaries and eliminations. Such financial data include the related Condensed Consolidating Statements of Income for the three and six months ended March 31, 2019 and March 31, 2018, Condensed Consolidating Balance Sheets as of March 31, 2019 and September 30, 2018 and Condensed Consolidating Statements of Cash Flows for the six months ended March 31, 2019 and March 31, 2018. CONDENSED CONSOLIDATING STATEMENTS OF INCOME Three Months Ended March 31, 2019 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 639.2 $ 4,638.1 $ (657.3 ) $ 4,620.0 Cost of goods sold — — 526.8 3,850.9 (657.3 ) 3,720.4 Selling, general and administrative, excluding intangible amortization — 0.3 14.2 429.6 — 444.1 Selling, general and administrative intangible amortization — — 26.3 76.1 — 102.4 Land and Development impairments — — — 13.0 — 13.0 Restructuring and other costs — 3.9 — 30.9 — 34.8 Operating profit (loss) — (4.2 ) 71.9 237.6 — 305.3 Interest expense, net — (65.0 ) (42.0 ) (4.8 ) — (111.8 ) Intercompany interest income (expense), net — 0.5 (27.5 ) 27.0 — — Gain on extinguishment of debt — — 0.4 — — 0.4 Pension and other postretirement non- service (expense) income — — (1.7 ) 20.4 — 18.7 Other (expense) income, net — (3.4 ) (1.0 ) 1.1 — (3.3 ) Equity in income of unconsolidated entities — — — (0.2 ) — (0.2 ) Equity in income of consolidated entities 160.4 196.9 168.8 — (526.1 ) — Income before income taxes 160.4 124.8 168.9 281.1 (526.1 ) 209.1 Income tax benefit (expense) — 14.1 0.6 (61.9 ) — (47.2 ) Consolidated net income 160.4 138.9 169.5 219.2 (526.1 ) 161.9 Less: Net income attributable to noncontrolling interests — — — (1.5 ) — (1.5 ) Net income attributable to common stockholders $ 160.4 $ 138.9 $ 169.5 $ 217.7 $ (526.1 ) $ 160.4 Comprehensive income attributable to common stockholders $ 189.7 $ 168.3 $ 201.6 $ 247.0 $ (616.9 ) $ 189.7 CONDENSED CONSOLIDATING STATEMENTS OF INCOME Six Months Ended March 31, 2019 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 1,263.0 $ 8,971.9 $ (1,287.5 ) $ 8,947.4 Cost of goods sold — — 1,027.7 7,525.8 (1,287.5 ) 7,266.0 Selling, general and administrative, excluding intangible amortization — 0.4 27.3 817.3 — 845.0 Selling, general and administrative intangible amortization — — 52.3 143.0 — 195.3 Gain on disposal of assets — — — (43.8 ) — (43.8 ) Land and Development impairments — — — 13.0 — 13.0 Restructuring and other costs — 3.9 0.1 85.2 — 89.2 Operating profit (loss) — (4.3 ) 155.6 431.4 — 582.7 Interest expense, net — (112.0 ) (91.9 ) (2.3 ) — (206.2 ) Intercompany interest income (expense), net — 3.5 (54.6 ) 51.1 — — (Loss) gain on extinguishment of debt — (1.8 ) 0.4 (0.1 ) — (1.5 ) Pension and other postretirement non- service (expense) income — — (3.4 ) 39.4 — 36.0 Other expense, net — (4.0 ) (0.4 ) (1.6 ) — (6.0 ) Equity in income of unconsolidated entities — — — 6.6 — 6.6 Equity in income of consolidated entities 299.5 396.7 417.3 — (1,113.5 ) — Income before income taxes 299.5 278.1 423.0 524.5 (1,113.5 ) 411.6 Income tax benefit (expense) — 29.0 (1.3 ) (137.6 ) — (109.9 ) Consolidated net income 299.5 307.1 421.7 386.9 (1,113.5 ) 301.7 Less: Net income attributable to noncontrolling interests — — — (2.2 ) — (2.2 ) Net income attributable to common stockholders $ 299.5 $ 307.1 $ 421.7 $ 384.7 $ (1,113.5 ) $ 299.5 Comprehensive income attributable to common stockholders $ 269.3 $ 277.1 $ 394.5 $ 354.7 $ (1,026.3 ) $ 269.3 CONDENSED CONSOLIDATING STATEMENTS OF INCOME Three Months Ended March 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 633.7 $ 4,034.3 $ (651.0 ) $ 4,017.0 Cost of goods sold — — 512.1 3,366.5 (651.0 ) 3,227.6 Selling, general and administrative, excluding intangible amortization — 0.4 24.9 370.5 — 395.8 Selling, general and administrative intangible amortization — — 26.1 49.1 — 75.2 Loss on disposal of assets — — 0.1 2.7 — 2.8 Restructuring and other costs — 2.5 4.2 25.0 — 31.7 Operating profit (loss) — (2.9 ) 66.3 220.5 — 283.9 Interest expense, net (0.1 ) (28.6 ) (43.5 ) (6.1 ) — (78.3 ) Intercompany interest income (expense), net — 6.2 (16.5 ) 10.3 — — (Loss) gain on extinguishment of debt — (0.7 ) 0.9 (0.1 ) — 0.1 Pension and other postretirement non- service (expense) income — — (0.2 ) 24.8 — 24.6 Other income (expense), net — 0.6 2.6 (2.1 ) — 1.1 Equity in income of unconsolidated entities — — — 11.9 — 11.9 Equity in income of consolidated entities — 242.4 129.5 — (371.9 ) — Income (loss) before income taxes (0.1 ) 217.0 139.1 259.2 (371.9 ) 243.3 Income tax benefit (expense) — 6.3 (0.1 ) (25.0 ) — (18.8 ) Consolidated net income (loss) (0.1 ) 223.3 139.0 234.2 (371.9 ) 224.5 Less: Net income attributable to noncontrolling interests — — — (1.3 ) — (1.3 ) Net income (loss) attributable to common stockholders $ (0.1 ) $ 223.3 $ 139.0 $ 232.9 $ (371.9 ) $ 223.2 Comprehensive income (loss) attributable to common stockholders $ (0.1 ) $ 279.2 $ 213.9 $ 288.8 $ (502.7 ) $ 279.1 CONDENSED CONSOLIDATING STATEMENTS OF INCOME Six Months Ended March 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 1,243.8 $ 7,958.0 $ (1,290.8 ) $ 7,911.0 Cost of goods sold — — 959.6 6,679.3 (1,290.8 ) 6,348.1 Selling, general and administrative, excluding intangible amortization — 0.4 49.3 726.9 — 776.6 Selling, general and administrative intangible amortization — — 52.1 95.6 — 147.7 Loss on disposal of assets — — 0.1 3.8 — 3.9 Multiemployer pension withdrawal — 6.5 12.5 161.0 — 180.0 Land and Development impairments — — — 27.6 — 27.6 Restructuring and other costs — 3.3 5.3 39.4 — 48.0 Operating profit (loss) — (10.2 ) 164.9 224.4 — 379.1 Interest expense, net (0.1 ) (43.9 ) (87.7 ) (11.4 ) — (143.1 ) Intercompany interest income (expense), net — 11.8 (32.3 ) 20.5 — — (Loss) gain on extinguishment of debt — (1.6 ) 0.9 (0.2 ) — (0.9 ) Pension and other postretirement non- service (expense) income — — (0.3 ) 49.5 — 49.2 Other income (expense), net — 1.0 4.3 (1.7 ) — 3.6 Equity in income of unconsolidated entities — — 2.5 13.2 — 15.7 Equity in income of consolidated entities — 1,394.4 1,023.1 — (2,417.5 ) — Income (loss) before income taxes (0.1 ) 1,351.5 1,075.4 294.3 (2,417.5 ) 303.6 Income tax benefit — 6.9 124.4 923.1 — 1,054.4 Consolidated net income (loss) (0.1 ) 1,358.4 1,199.8 1,217.4 (2,417.5 ) 1,358.0 Less: Net loss attributable to noncontrolling interests — — — 0.3 — 0.3 Net income (loss) attributable to common stockholders $ (0.1 ) $ 1,358.4 $ 1,199.8 $ 1,217.7 $ (2,417.5 ) $ 1,358.3 Comprehensive income (loss) attributable to common stockholders $ (0.1 ) $ 1,374.0 $ 1,229.5 $ 1,233.6 $ (2,463.1 ) $ 1,373.9 CONDENSED CONSOLIDATING BALANCE SHEETS March 31, 2019 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 19.6 $ 134.6 $ — $ 154.2 Accounts receivable — — 182.8 2,217.5 (33.3 ) 2,367.0 Inventories — — 254.8 1,842.1 — 2,096.9 Other current assets 0.5 0.7 8.2 553.0 — 562.4 Intercompany receivables — 154.0 23.0 485.6 (662.6 ) — Assets held for sale — — — 33.5 — 33.5 Total current assets 0.5 154.7 488.4 5,266.3 (695.9 ) 5,214.0 Property, plant and equipment, net — — 22.2 11,007.2 — 11,029.4 Goodwill — — 1,151.3 6,149.6 — 7,300.9 Intangibles, net — — 1,537.1 2,740.8 — 4,277.9 Restricted assets held by special purpose entities — — — 1,277.7 — 1,277.7 Prepaid pension asset — — — 447.7 — 447.7 Intercompany notes receivable — 155.0 31.9 2,941.1 (3,128.0 ) — Investments in consolidated subsidiaries 11,797.4 18,075.3 19,938.9 — (49,811.6 ) — Other assets — 14.2 181.4 959.4 (9.6 ) 1,145.4 Total Assets $ 11,797.9 $ 18,399.2 $ 23,351.2 $ 30,789.8 $ (53,645.1 ) $ 30,693.0 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 405.6 $ 603.8 $ 413.0 $ — $ 1,422.4 Accounts payable — 1.1 34.7 1,699.5 (33.3 ) 1,702.0 Accrued compensation and benefits 0.1 — 10.2 370.3 — 380.6 Other current liabilities — 7.3 99.1 435.2 — 541.6 Intercompany payables 157.0 504.5 0.8 0.3 (662.6 ) — Total current liabilities 157.1 918.5 748.6 2,918.3 (695.9 ) 4,046.6 Long-term debt due after one year — 6,223.9 2,101.7 1,047.5 — 9,373.1 Intercompany notes payable — — 2,941.1 186.9 (3,128.0 ) — Pension liabilities, net of current portion — — 135.4 115.6 — 251.0 Postretirement benefit liabilities, net of current portion — — 28.0 113.5 — 141.5 Non-recourse liabilities held by special purpose entities — — — 1,149.5 — 1,149.5 Deferred income taxes — — 267.3 2,697.5 (9.6 ) 2,955.2 Other long-term liabilities — 14.6 135.7 969.0 — 1,119.3 Redeemable noncontrolling interests — — — 3.2 — 3.2 Total stockholders’ equity 11,640.8 11,242.2 16,993.4 21,576.0 (49,811.6 ) 11,640.8 Noncontrolling interests — — — 12.8 — 12.8 Total equity 11,640.8 11,242.2 16,993.4 21,588.8 (49,811.6 ) 11,653.6 Total Liabilities and Equity $ 11,797.9 $ 18,399.2 $ 23,351.2 $ 30,789.8 $ (53,645.1 ) $ 30,693.0 CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ — $ 0.2 $ 490.8 $ 145.8 $ — $ 636.8 Accounts receivable — 0.1 196.5 1,840.2 (26.1 ) 2,010.7 Inventories — — 233.4 1,596.2 — 1,829.6 Other current assets — 0.4 17.2 230.9 — 248.5 Intercompany receivables — 27.7 269.8 792.8 (1,090.3 ) — Assets held for sale — — — 59.5 — 59.5 Total current assets — 28.4 1,207.7 4,665.4 (1,116.4 ) 4,785.1 Property, plant and equipment, net — — 21.3 9,061.2 — 9,082.5 Goodwill — — 1,151.3 4,426.3 — 5,577.6 Intangibles, net — — 1,589.4 1,532.6 — 3,122.0 Restricted assets held by special purpose entities — — — 1,281.0 — 1,281.0 Prepaid pension asset — — — 420.0 — 420.0 Intercompany notes receivable — 884.2 33.1 2,865.4 (3,782.7 ) — Investments in consolidated subsidiaries — 13,260.3 15,066.3 — (28,326.6 ) — Other assets 3.4 12.4 172.8 910.8 (7.1 ) 1,092.3 Total Assets $ 3.4 $ 14,185.3 $ 19,241.9 $ 25,162.7 $ (33,232.8 ) $ 25,360.5 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ — $ 609.5 $ 131.2 $ — $ 740.7 Accounts payable — 0.8 40.3 1,701.8 (26.1 ) 1,716.8 Accrued compensation and benefits — 0.2 10.7 388.4 — 399.3 Other current liabilities — 3.2 77.7 395.6 — 476.5 Intercompany payables 13.0 506.6 570.4 0.3 (1,090.3 ) — Total current liabilities 13.0 510.8 1,308.6 2,617.3 (1,116.4 ) 3,333.3 Long-term debt due after one year — 2,179.4 2,460.1 1,035.0 — 5,674.5 Intercompany notes payable — — 2,865.4 917.3 (3,782.7 ) — Pension liabilities, net of current portion — — 135.9 125.4 — 261.3 Postretirement benefit liabilities, net of current portion — — 28.1 106.7 — 134.8 Non-recourse liabilities held by special purpose entities — — — 1,153.7 — 1,153.7 Deferred income taxes — — 291.0 2,037.6 (7.1 ) 2,321.5 Other long-term liabilities — 16.1 106.2 872.5 — 994.8 Redeemable noncontrolling interests — — — 4.2 — 4.2 Total stockholders’ equity (9.6 ) 11,479.0 12,046.6 16,280.0 (28,326.6 ) 11,469.4 Noncontrolling interests — — — 13.0 — 13.0 Total equity (9.6 ) 11,479.0 12,046.6 16,293.0 (28,326.6 ) 11,482.4 Total Liabilities and Equity $ 3.4 $ 14,185.3 $ 19,241.9 $ 25,162.7 $ (33,232.8 ) $ 25,360.5 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended March 31, 2019 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Operating activities: Net cash provided by (used for) operating activities $ 319.1 $ (93.4 ) $ (196.9 ) $ 1,208.6 $ (572.4 ) $ 665.0 Investing activities: Capital expenditures — — (2.4 ) (623.0 ) — (625.4 ) Cash paid related to business combinations, net of cash acquired — — — (3,349.3 ) — (3,349.3 ) Investment in unconsolidated entities equipment — — — (0.2 ) — (0.2 ) Proceeds from sale of property, plant and equipment — — — 105.3 — 105.3 Proceeds from property, plant and equipment insurance settlement — — — 8.8 — 8.8 Intercompany notes issued — — — (75.7 ) 75.7 — Intercompany notes proceeds — 9.2 1.3 3,800.0 (3,810.5 ) — Intercompany capital investment (563.0 ) (563.0 ) — — 1,126.0 — Other — — 8.6 1.6 — 10.2 Net cash (used for) provided by investing activities (563.0 ) (553.8 ) 7.5 (132.5 ) (2,608.8 ) (3,850.6 ) Financing activities: Proceeds from issuance of notes — 1,498.5 — — — 1,498.5 Additions to revolving credit facilities — 67.5 — 104.5 — 172.0 Additions to debt — 3,801.9 — 156.0 — 3,957.9 Repayments of debt — (1,489.7 ) (357.5 ) (1,362.4 ) — (3,209.6 ) Changes in commercial paper, net — 588.3 — — — 588.3 Other financing additions — — — 16.6 — 16.6 Issuances of common stock, net of related minimum tax withholdings 3.2 — — — — 3.2 Purchases of common stock (88.6 ) — — — — (88.6 ) Cash dividends paid to stockholders (233.7 ) — — — — (233.7 ) Cash distributions paid to noncontrolling interests — — — (2.8 ) — (2.8 ) Intercompany notes borrowing — — 75.7 — (75.7 ) — Intercompany notes payments — (3,800.0 ) — (10.5 ) 3,810.5 — Intercompany capital receipt 563.0 — — 563.0 (1,126.0 ) — Intercompany dividends — — — (572.4 ) 572.4 — Other — (19.5 ) — 22.5 — 3.0 Net cash provided by (used for) financing activities 243.9 647.0 (281.8 ) (1,085.5 ) 3,181.2 2,704.8 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — (1.8 ) — (1.8 ) Decrease in cash, cash equivalents and restricted cash — (0.2 ) (471.2 ) (11.2 ) — (482.6 ) Cash, cash equivalents and restricted cash at beginning of period — 0.2 490.8 145.8 — 636.8 Cash, cash equivalents and restricted cash at end of period $ — $ 0.0 $ 19.6 $ 134.6 $ — $ 154.2 The Condensed Consolidating Statements of Cash Flows for the six months ended March 31, 2019 do not include non-cash transactions between Parent, Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries. From time to time, we may enter into non-cash transactions for simplicity of execution of intercompany transactions. These may include intercompany non-cash capitalizations, intercompany non-cash returns of capital, intercompany debt-to-equity conversions or other transactions of a similar nature. The table below summarizes these non-cash transactions. Six Months Ended March 31, 2019 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Operating activities: Intercompany receivables $ (140.9 ) $ — $ — $ — $ 140.9 $ — Intercompany payables $ — $ — $ — $ 140.9 $ (140.9 ) $ — Investing activities: Intercompany notes issued $ — $ (3,800.0 ) $ (4,519.8 ) $ (8,057.5 ) $ 16,377.3 $ — Intercompany notes proceeds $ — $ 4,519.8 $ 4,519.8 $ 4,257.5 $ (13,297.1 ) $ — Intercompany capital investment $ (10,396.2 ) $ (5,434.8 ) $ (5,983.6 ) $ — $ 21,814.6 $ — Intercompany return of capital $ 563.0 $ 1,478.0 $ 915.0 $ — $ (2,956.0 ) $ — Financing activities: Intercompany notes borrowing $ — $ 3,800.0 $ 457.5 $ 12,119.8 $ (16,377.3 ) $ — Intercompany notes payments $ — $ — $ (457.5 ) $ (12,839.6 ) $ 13,297.1 $ — Intercompany capital receipt $ — $ 10,396.2 $ 4,977.3 $ 6,441.1 $ (21,814.6 ) $ — Intercompany capital distribution $ (563.0 ) $ (563.0 ) $ (457.5 ) $ (1,372.5 ) $ 2,956.0 $ — CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended March 31, 2018 (In millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Total Operating activities: Net cash provided by (used for) operating activities $ 4.0 $ (488.3 ) $ (268.8 ) $ 1,541.0 $ (314.2 ) $ 473.7 Investing activities: Capital expenditures — — (0.4 ) (426.3 ) — (426.7 ) Cash paid related to business combinations, net of cash acquired — — — (185.2 ) — (185.2 ) Cash receipts on sold trade receivables — — — 253.1 — 253.1 Investment in unconsolidated entities — — — (111.0 ) — (111.0 ) Proceeds from sale of property, plant and equipment — — — 15.7 — 15.7 Proceeds from property, plant and equipment insurance settlement — — — 4.8 — 4.8 Intercompany notes issued — — (1.4 ) (375.9 ) 377.3 — Intercompany notes proceeds — — 3.2 83.0 (86.2 ) — Intercompany capital investment — (755.3 ) (300.8 ) — 1,056.1 — Intercompany return of capital — 1,356.3 821.0 — (2,177.3 ) — Other — — 6.6 1.6 — 8.2 Net cash provided by (used for) investing activities — 601.0 528.2 (740.2 ) (830.1 ) (441.1 ) Financing activities: Proceeds from issuance of notes — 1,197.3 — — — 1,197.3 (Repayments) additions to revolving credit facilities — (59.8 ) — 154.1 — 94.3 Additions to debt — 2.7 — 850.5 — 853.2 Repayments of debt — (1,025.2 ) (14.8 ) (970.4 ) — (2,010.4 ) Changes in commercial paper, net — 63.3 — — — 63.3 Other financing repayments — — (5.9 ) (18.6 ) — (24.5 ) Issuances of common stock, net of related minimum tax withholdings — 17.4 — — — 17.4 Cash dividends paid to stockholders — (219.4 ) — — — (219.4 ) Cash distributions paid to noncontrolling interests — — — (8.6 ) — (8.6 ) Intercompany notes borrowing — — 375.9 1.4 (377.3 ) — Intercompany notes payments — (69.0 ) (14.0 ) (3.2 ) 86.2 — Intercompany capital receipt — — 736.9 319.2 (1,056.1 ) — Intercompany capital distribution — — (1,356.3 ) (821.0 ) 2,177.3 — Intercompany dividends — — — (314.2 ) 314.2 — Other (4.0 ) (20.0 ) — (0.9 ) — (24.9 ) Net cash used for financing activities (4.0 ) (112.7 ) (278.2 ) (811.7 ) 1,144.3 (62.3 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (0.1 ) (1.8 ) — (1.9 ) Decrease in cash, cash equivalents and restricted cash — — (18.9 ) (12.7 ) — (31.6 ) Cash, cash equivalents and restricted cash at beginning of period — — 43.3 260.7 — 304.0 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 24.4 $ 248.0 $ — $ 272.4 |