Exhibit 99.1
Contacts:
| | Media: | | Marie Remboulis – 248/354-9809 |
| | | Investors: | | Janet Halpin – 248/354-8847 |
FOR IMMEDIATE RELEASE
Federal-Mogul Announces Third Quarter 2003 Results
Southfield, Michigan, October 21, 2003...Federal-Mogul Corporation (OTC Bulletin Board: FDMLQ) today reported results for the third quarter 2003.
Highlights
| · | | Federal-Mogul was awarded new aftermarket business with Sears, Roebuck and Co. and Independent Factors Association. |
| · | | Net sales remained steady at $1,346 million despite challenging market conditions. |
| · | | Aftermarket sales increased by 7 percent to $644 million. |
| · | | Asia Pacific region sales increased by 18 percent to $20 million. |
| · | | Year-to-date cash flow from operating activities increased by 42 percent to $269 million. |
Overview
For the third quarter 2003, Federal-Mogul posted sales of $1,346 million, compared to $1,345 million in 2002. Excluding the impact of divestitures in 2002 of $47 million and the effect of foreign exchange of $66 million in the third quarter 2003, sales decreased by 1 percent.
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Federal-Mogul reported a third quarter pretax loss of $17 million, compared to a pretax loss of $64 million in the third quarter of 2002. Excluding the effects of Chapter 11 and Administration related reorganization expenses and business divestitures, Federal-Mogul reported a $39 million improvement in pretax results from operations in the third quarter 2003 to $10 million (a reconciliation of pretax results from operations to reported net income is provided in the attached supplemental data).
Operating cash flow for the third quarter 2003 was $68 million, compared to $82 million in the third quarter 2002. Year-to-date cash flow from operating activities was $269 million, compared to $189 million for the same period in 2002.
“We are pleased with our third quarter results despite challenging market conditions and industry trends,” said Chip McClure, chief executive officer and president.
Aftermarket Sales
Sales of replacement parts to aftermarket customers totaled 48 percent of Federal-Mogul’s third quarter 2003 sales. Third quarter 2003 aftermarket sales were $644 million, compared to $604 million in third quarter 2002. Excluding the effect of foreign exchange, aftermarket sales increased by 3 percent compared to 2002. The sales increase can be attributed to Federal-Mogul’s strong performing products particularly wipers and friction as well as recent new business contracts. Third quarter 2003 aftermarket sales by geographic region were 76 percent in the Americas and 24 percent in Europe.
“During the third quarter, we launched our innovative new, glare resistant headlamp – TruView™ – which is marketed under the Wagner Lighting brand name,” said Joseph Felicelli, senior vice president, worldwide Aftermarket.
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“We are also pleased with new business development this past quarter. The company secured a seven-year contract with Sears, Roebuck and Co. to supply automotive brake, chassis and wheel-end components to Sears Auto Service Centers in the United States. We also secured a three-year contract with the Independent Factors Association (IFA), a customer in the U.K., making Federal-Mogul the sole supplier of Moog® chassis parts for IFA’s 200 branches,” added Felicelli.
Original Equipment
Sales of parts to original equipment (OE) customers totaled 52 percent of the company’s third quarter 2003 sales. Third quarter 2003 OE sales were $693 million, compared to $687 million in 2002. Excluding the effect of foreign exchange, sales decreased by 5 percent compared with 2002. Third quarter 2003 OE sales by geographic region were 37 percent in the Americas, 59 percent in Europe and 4 percent in the rest of the world.
Third quarter OE sales of Friction products were $101 million, compared to $96 million in 2002. Excluding the effect of foreign exchange, sales of Friction products were unchanged. Third quarter 2003 OE sales by geographic region for Friction products were 27 percent in the Americas and 73 percent in Europe.
Third quarter OE sales of Powertrain products, including Bearings, Pistons, Piston Rings and Liners, and Sintered Valve Train and Transmission Products, were $427 million, compared to $413 million in 2002. Excluding the effect of foreign exchange, sales of Powertrain products decreased by 4 percent. Third quarter 2003 sales by geographic region for OE Powertrain products were 29 percent in the Americas, 70 percent in Europe and 1 percent in the rest of the world.
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Third quarter OE sales of Sealing Systems and Systems Protection products were $142 million, compared with $158 million in 2002. Excluding the effect of foreign exchange, sales for Sealing Systems and Systems Protection products decreased by 12 percent. This is primarily due to business mix and the decrease in automotive volumes. Third quarter 2003 OE sales by geographic region for Sealing Systems and Systems Protection products were 70 percent in the Americas, 29 percent in Europe and 1 percent in the rest of the world.
Third quarter sales for other products primarily in Asia Pacific region were $23 million, compared with $20 million in 2002. Excluding the impact of foreign exchange, sales for other products increased by 15 percent.
“We are pleased with our progress in the Asia Pacific region,” said McClure. “Our growth in the region is consistent with our strategic plan to expand to new geographic markets.”
Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles generally accepted in the United States (GAAP) included within this press release, Federal-Mogul has provided certain information related to “results from operations,” which is a non-GAAP measure. Such information is reconciled to its closest GAAP measure in accordance with SEC Regulation G and is included in the attached supplemental data.
Management believes that results from operations is useful to both management and its stakeholders in their analysis of the company’s ongoing business operations. Management also uses this information for operational planning and decision-making purposes.
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Results from operations should not be considered a substitute for net income or any other GAAP measure. Additionally, results from operations as presented by Federal-Mogul may not be comparable to similarly titled measures reported by other companies.
About Federal-Mogul
Federal-Mogul is a global supplier of automotive components, sub-systems, modules and systems serving the world’s original equipment manufacturers and the aftermarket. The company utilizes its engineering and materials expertise, proprietary technology, manufacturing skill, distribution flexibility and marketing power to deliver products, brands and services of value to its customers. Federal-Mogul is focused on the globalization of its teams, products and processes to bring greater opportunities for its customers and employees, and value to its constituents.
Headquartered in Southfield, Michigan, Federal-Mogul was founded in Detroit in 1899 and today employs 47,000 people in 24 countries. On October 1, 2001, Federal-Mogul decided to separate its asbestos liabilities from its true operating potential by voluntarily filing for financial restructuring under Chapter 11 of the Bankruptcy Code in the United States and Administration in the United Kingdom. For more information on Federal-Mogul, visit the company’s Web site athttp://www.federal-mogul.com.
Forward-Looking Statement
Statements contained in this press release, which are not historical fact, constitute “Forward-Looking Statements.” Actual results may differ materially due to numerous important factors that are described in Federal-Mogul’s most recent report to the SEC on Form 10-K, which may be revised or supplemented in subsequent reports to the SEC on Forms 10-Q and 8-K. Such factors include, among others, the cost and timing of implementing restructuring actions, the results of the Chapter 11 and Administration proceedings, the Company’s ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and certain global and regional economic conditions. Federal-Mogul does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
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FEDERAL-MOGUL CORPORATION
STATEMENTS OF OPERATIONS
(Millions of Dollars, Except Per Share Data)
(Unaudited)
| | | Three Months Ended
September 30
| | | | | | | | | | | Nine Months Ended
September 30
| |
| | | 2003
| | | 2002
| | | | | | | | | | | 2003
| | | 2002
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Net sales | | $ | 1,346.4 | | | $ | 1,345.2 | | | | | | | | | | | $ | 4,200.9 | | | $ | 4,133.6 | |
Cost of products sold | | | 1,095.8 | | | | 1,095.5 | | | | | | | | | | | | 3,374.7 | | | | 3,331.3 | |
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Gross margin | | | 250.6 | | | | 249.7 | | | | | | | | | | | | 826.2 | | | | 802.3 | |
Selling, general and administrative expenses | | | 212.7 | | | | 206.4 | | | | | | | | | | | | 667.7 | | | | 623.6 | |
Restructuring charges, net | | | 8.1 | | | | 17.0 | | | | | | | | | | | | 28.3 | | | | 28.0 | |
Adjustment of assets held for sale and other long-lived assets to fair value | | | 0.9 | | | | 24.6 | | | | | | | | | | | | 4.5 | | | | 27.2 | |
Interest expense, net | | | 23.1 | | | | 29.8 | | | | | | | | | | | | 74.4 | | | | 90.0 | |
Chapter 11 and Administration related reorganization expenses | | | 25.7 | | | | 33.4 | | | | | | | | | | | | 85.4 | | | | 76.4 | |
Other (income) expense, net | | | (2.9 | ) | | | 2.5 | | | | | | | | | | | | (16.9 | ) | | | (4.2 | ) |
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Loss Before Income Taxes and Cumulative Effect of Change in Accounting Principle | | | (17.0 | ) | | | (64.0 | ) | | | | | | | | | | | (17.2 | ) | | | (38.7 | ) |
Income tax expense | | | 12.5 | | | | 9.3 | | | | | | | | | | | | 51.6 | | | | 59.8 | |
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Loss Before Cumulative Effect of Change in Accounting Principle | | | (29.5 | ) | | | (73.3 | ) | | | | | | | | | | | (68.8 | ) | | | (98.5 | ) |
Cumulative effect of change in accounting principle, net of applicable income tax benefit | | | — | | | | — | | | | | | | | | | | | — | | | | 1,417.9 | |
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Net Loss | | $ | (29.5 | ) | | $ | (73.3 | ) | | | | | | | | | | $ | (68.8 | ) | | $ | (1,516.4 | ) |
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Loss Per Common Share: | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and Diluted | | | | | | | | | | | | | | | | | | | | | | | | |
Loss before cumulative effect of change in accounting principle | | $ | (0.34 | ) | | $ | (0.89 | ) | | | | | | | | | | $ | (0.79 | ) | | $ | (1.19 | ) |
Cumulative effect of change in accounting principle, net of applicable income tax benefit | | | — | | | | — | | | | | | | | | | | | — | | | | 17.22 | |
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Loss Available for Common Shareholders | | $ | (0.34 | ) | | $ | (0.89 | ) | | | | | | | | | | $ | (0.79 | ) | | $ | (18.41 | ) |
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Weighted Average Shares (Thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and Diluted | | | 87,128 | | | | 82,446 | | | | | | | | | | | | 87,128 | | | | 82,392 | |
FEDERAL-MOGUL CORPORATION
BALANCE SHEETS
(Millions of Dollars)
| | | (Unaudited)
September 30
2003
| | | December 31
2002
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Assets | | | | | | | | |
Cash and equivalents | | $ | 472.8 | | | $ | 395.1 | |
Accounts receivable | | | 978.2 | | | | 954.0 | |
Inventories | | | 801.9 | | | | 800.1 | |
Prepaid expenses and other current assets | | | 223.4 | | | | 209.9 | |
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Total current assets | | | 2,476.3 | | | | 2,359.1 | |
Property, plant and equipment, net | | | 2,323.3 | | | | 2,273.0 | |
Goodwill and indefinite-lived intangible assets | | | 1,592.9 | | | | 1,565.2 | |
Definite-lived intangible assets, net | | | 347.5 | | | | 351.6 | |
Asbestos-related insurance recoverable | | | 801.3 | | | | 780.6 | |
Prepaid pension costs | | | 294.2 | | | | 361.5 | |
Other noncurrent assets | | | 216.8 | | | | 222.3 | |
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Total Assets | | $ | 8,052.3 | | | $ | 7,913.3 | |
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Liabilities and Shareholders’ Deficit | | | | | | | | |
Short-term debt, including current portion of long-term debt | | $ | 14.3 | | | $ | 346.1 | |
Accounts payable | | | 340.4 | | | | 318.9 | |
Accrued compensation | | | 236.8 | | | | 242.1 | |
Restructuring reserves | | | 63.9 | | | | 90.8 | |
Accrued income taxes | | | 52.5 | | | | 43.1 | |
Other accrued liabilities | | | 362.8 | | | | 363.4 | |
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Total current liabilities | | | 1,070.7 | | | | 1,404.4 | |
Liabilities subject to compromise | | | 6,063.1 | | | | 6,053.2 | |
Long-term debt | | | 321.8 | | | | 14.3 | |
Postemployment benefits | | | 1,589.7 | | | | 1,541.2 | |
Deferred income taxes | | | 61.0 | | | | 52.4 | |
Other accrued liabilities | | | 211.5 | | | | 205.7 | |
Minority interest in consolidated subsidiaries | | | 48.6 | | | | 45.7 | |
Shareholders’ deficit: | | | | | | | | |
Series C ESOP preferred stock | | | 28.0 | | | | 28.0 | |
Common stock | | | 435.6 | | | | 435.6 | |
Additional paid-in capital | | | 2,060.5 | | | | 2,060.5 | |
Accumulated deficit | | | (2,812.7 | ) | | | (2,743.9 | ) |
Accumulated other comprehensive loss | | | (1,025.5 | ) | | | (1,183.7 | ) |
Other | | | — | | | | (0.1 | ) |
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Total Shareholders’ Deficit | | | (1,314.1 | ) | | | (1,403.6 | ) |
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Total Liabilities and Shareholders’ Deficit | | $ | 8,052.3 | | | $ | 7,913.3 | |
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FEDERAL-MOGUL CORPORATION
STATEMENTS OF CASH FLOWS
(Millions of Dollars)
(Unaudited)
| | | Three Months
Ended
September 30
| | | Nine Months
Ended
September 30
| |
| | | 2003
| | | 2002
| | | 2003
| | | 2002
| |
Cash Provided From (Used By) Operating Activities | | | | | | | | | | | | | | | | |
Net loss | | $ | (29.5 | ) | | $ | (73.3 | ) | | $ | (68.8 | ) | | $ | (1,516.4 | ) |
Adjustments to reconcile net loss to net cash provided from
(used by) operating activities: | | | | | | | | | | | | | | | | |
Cumulative effect of change in accounting principle | | | — | | | | — | | | | — | | | | 1,464.5 | |
Depreciation and amortization | | | 77.9 | | | | 70.1 | | | | 227.5 | | | | 206.9 | |
Restructuring charges, net | | | 8.1 | | | | 17.0 | | | | 28.3 | | | | 28.0 | |
Chapter 11 and Administration related reorganization expenses | | | 25.7 | | | | 33.4 | | | | 85.4 | | | | 76.4 | |
Adjustment of assets held for sale and other long-lived
assets to fair value | | | 0.9 | | | | 24.6 | | | | 4.5 | | | | 27.2 | |
Loss (gain) on sale of businesses | | | 0.8 | | | | 1.8 | | | | 7.9 | | | | (4.7 | ) |
Change in postemployment benefits, including pensions | | | 29.4 | | | | 19.5 | | | | 87.0 | | | | 58.5 | |
Change in deferred taxes | | | 11.2 | | | | 13.5 | | | | 26.0 | | | | (21.1 | ) |
Decrease (increase) in accounts receivable | | | 7.0 | | | | 55.4 | | | | 11.7 | | | | (67.1 | ) |
Decrease (increase) in inventories | | | 1.0 | | | | (12.7 | ) | | | 19.0 | | | | (60.9 | ) |
(Decrease) increase in accounts payable | | | (16.2 | ) | | | (5.0 | ) | | | (2.0 | ) | | | 16.2 | |
Change in other assets and other liabilities | | | (1.1 | ) | | | (31.3 | ) | | | (34.2 | ) | | | 66.0 | |
Payments against restructuring reserves | | | (21.5 | ) | | | (9.2 | ) | | | (59.1 | ) | | | (27.0 | ) |
Payments of Chapter 11 and Administration related
reorganization expenses | | | (25.5 | ) | | | (21.5 | ) | | | (64.1 | ) | | | (57.7 | ) |
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Net Cash Provided From Operating Activities | | | 68.2 | | | | 82.3 | | | | 269.1 | | | | 188.8 | |
Cash Provided From (Used By) Investing Activities | | | | | | | | | | | | | | | | |
Expenditures for property, plant and equipment and other long-term assets | | | (74.1 | ) | | | (100.9 | ) | | | (214.8 | ) | | | (228.1 | ) |
Proceeds from sale of businesses | | | 2.1 | | | | 3.7 | | | | 23.6 | | | | 25.5 | |
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Net Cash Used By Investing Activities | | | (72.0 | ) | | | (97.2 | ) | | | (191.2 | ) | | | (202.6 | ) |
Cash Provided From (Used By) Financing Activities | | | | | | | | | | | | | | | | |
Proceeds from the issuance of long-term debt | | | 1.1 | | | | 1.0 | | | | 1.2 | | | | 2.5 | |
Principal payments on long-term debt | | | (0.2 | ) | | | (0.2 | ) | | | (3.7 | ) | | | (2.1 | ) |
Borrowings from DIP credit facility | | | 30.5 | | | | — | | | | 105.5 | | | | — | |
Principal payments on DIP credit facility | | | (10.0 | ) | | | (3.9 | ) | | | (110.2 | ) | | | (10.0 | ) |
Increase (decrease) in short-term debt | | | 2.2 | | | | 10.8 | | | | (17.1 | ) | | | 3.3 | |
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Net Cash Provided From (Used By) Financing Activities | | | 23.6 | | | | 7.7 | | | | (24.3 | ) | | | (6.3 | ) |
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Effect of Foreign Currency Exchange Rate Fluctuations On Cash | | | 1.6 | | | | (4.0 | ) | | | 24.1 | | | | 12.5 | |
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Increase (decrease) in Cash and Equivalents | | | 21.4 | | | | (11.2 | ) | | | 77.7 | | | | (7.6 | ) |
Cash and equivalents at beginning of period | | | 451.4 | | | | 350.5 | | | | 395.1 | | | | 346.9 | |
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Cash and Equivalents at End of Period | | $ | 472.8 | | | $ | 339.3 | | | $ | 472.8 | | | $ | 339.3 | |
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FEDERAL-MOGUL CORPORATION
RECONCILIATION OF RESULTS FROM OPERATIONS TO REPORTED NET INCOME
(Millions of Dollars)
(Unaudited)
| | | Three Months Ended September 30, 2003
| |
| | | | | | Adjustments
| | | | |
| | | Results
From
Operations
| | | Chapter 11
Related
Items
| | | (Gain)/Loss
from
Divestitures
| | | As
Reported
| |
Net sales | | $ | 1,346.4 | | | $ | — | | | $ | — | | | $ | 1,346.4 | |
Cost of products sold | | | 1,095.8 | | | | — | | | | — | | | | 1,095.8 | |
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Gross margin | | | 250.6 | | | | — | | | | — | | | | 250.6 | |
Selling, general and administrative expenses | | | 212.7 | | | | — | | | | — | | | | 212.7 | |
Restructuring charges, net | | | 8.1 | | | | — | | | | — | | | | 8.1 | |
Adjustment of assets held for sale and other long-lived assets to fair value | | | 0.9 | | | | — | | | | — | | | | 0.9 | |
Interest expense, net | | | 23.1 | | | | — | | | | — | | | | 23.1 | |
Chapter 11 and Administration related reorganization expenses | | | — | | | | 25.7 | | | | — | | | | 25.7 | |
Other (income) expense, net | | | (3.7 | ) | | | — | | | | 0.8 | | | | (2.9 | ) |
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Earnings (Loss) Before Income Taxes | | | 9.5 | | | | (25.7 | ) | | | (0.8 | ) | | | (17.0 | ) |
Income tax expense (benefit) | | | 14.7 | | | | (2.1 | ) | | | (0.1 | ) | | | 12.5 | |
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Net Loss | | $ | (5.2 | ) | | $ | (23.6 | ) | | $ | (0.7 | ) | | $ | (29.5 | ) |
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FEDERAL-MOGUL CORPORATION
RECONCILIATION OF RESULTS FROM OPERATIONS TO REPORTED NET INCOME
(Millions of Dollars)
(Unaudited)
| | | Nine Months ended September 30, 2003
| |
| | | | | | Adjustments
| | | | |
| | | Results From Operations
| | | Chapter 11 Related Items
| | | (Gain)/Loss
from Divestitures
| | | As Reported
| |
Net sales | | $ | 4,200.9 | | | $ | — | | | $ | — | | | $ | 4,200.9 | |
Cost of products sold | | | 3,374.7 | | | | — | | | | — | | | | 3,374.7 | |
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Gross margin | | | 826.2 | | | | — | | | | — | | | | 826.2 | |
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Selling, general and administrative expenses | | | 667.7 | | | | — | | | | — | | | | 667.7 | |
Restructuring charges, net | | | 28.3 | | | | — | | | | — | | | | 28.3 | |
Adjustment of assets held for sale and other long-lived assets to fair value | | | 4.5 | | | | — | | | | — | | | | 4.5 | |
Interest expense, net | | | 74.4 | | | | — | | | | — | | | | 74.4 | |
Chapter 11 and Administration related reorganization expenses | | | | | | | | | | | | | | | | |
| | | | — | | | | 85.4 | | | | — | | | | 85.4 | |
Other (income) expense, net | | | (24.8 | ) | | | — | | | | 7.9 | | | | (16.9 | ) |
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Earnings (Loss) Before Income Taxes | | | 76.1 | | | | (85.4 | ) | | | (7.9 | ) | | | (17.2 | ) |
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Income tax expense (benefit) | | | 59.1 | | | | (6.3 | ) | | | (1.2 | ) | | | 51.6 | |
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Net Earnings (Loss) | | $ | 17.0 | | | $ | (79.1 | ) | | $ | (6.7 | ) | | $ | (68.8 | ) |
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FEDERAL-MOGUL CORPORATION
RECONCILIATION OF RESULTS FROM OPERATIONS TO REPORTED NET INCOME
(Millions of Dollars)
(Unaudited)
| | | Three Months Ended September 30, 2002
| |
| | | | | | Adjustments
| | | | |
| | | Results
From
Operations
| | | Chapter 11
Related
Items
| | | (Gain)/
Loss from
Divestitures
| | | As
Reported
| |
Net sales | | $ | 1,345.2 | | | $ | — | | | $ | — | | | $ | 1,345.2 | |
Cost of products sold | | | 1,095.5 | | | | — | | | | — | | | | 1,095.5 | |
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Gross margin | | | 249.7 | | | | — | | | | — | | | | 249.7 | |
Selling, general and administrative expenses | | | 206.4 | | | | — | | | | — | | | | 206.4 | |
Restructuring charges, net | | | 17.0 | | | | — | | | | — | | | | 17.0 | |
Adjustment of assets held for sale and Other long-lived assets to fair value | | | 24.6 | | | | — | | | | — | | | | 24.6 | |
Interest expense, net | | | 29.8 | | | | — | | | | — | | | | 29.8 | |
Chapter 11 and Administration related reorganization expenses | | | — | | | | 33.4 | | | | — | | | | 33.4 | |
Other expense, net | | | 0.6 | | | | — | | | | 1.9 | | | | 2.5 | |
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Loss Before Income Taxes | | | (28.7 | ) | | | (33.4 | ) | | | (1.9 | ) | | | (64.0 | ) |
Income tax expense (benefit) | | | 12.0 | | | | (2.7 | ) | | | — | | | | 9.3 | |
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Net Loss | | $ | (40.7 | ) | | $ | (30.7 | ) | | $ | (1.9 | ) | | $ | (73.3 | ) |
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FEDERAL-MOGUL CORPORATION
RECONCILIATION OF RESULTS FROM OPERATIONS TO REPORTED NET INCOME
(Millions of Dollars)
(Unaudited)
| | | Nine Months Ended September 30, 2002
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| | | | | | Adjustments
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| | | Results
From
Operations
| | | Chapter 11
Related
Items
| | | (Gain)/
Loss from
Divestitures
| | | Cumulative
Effect of Change
in Accounting
Principle
| | | Tax
Valuation
Allowance
| | | As
Reported
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Net sales | | $ | 4,133.6 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 4,133.6 | |
Cost of products sold | | | 3,331.3 | | | | — | | | | — | | | | — | | | | — | | | | 3,331.3 | |
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Gross margin | | | 802.3 | | | | — | | | | — | | | | — | | | | — | | | | 802.3 | |
Selling, general and administrative expenses | | | 623.6 | | | | — | | | | — | | | | — | | | | — | | | | 623.6 | |
Restructuring charges, net | | | 28.0 | | | | — | | | | — | | | | — | | | | — | | | | 28.0 | |
Adjustment of assets held for sale and other long-lived assets to fair value | | | 27.2 | | | | — | | | | — | | | | — | | | | — | | | | 27.2 | |
Interest expense, net | | | 90.0 | | | | — | | | | — | | | | — | | | | — | | | | 90.0 | |
Chapter 11 and Administration related reorganization expenses | | | — | | | | 76.4 | | | | — | | | | — | | | | — | | | | 76.4 | |
Other (income) expense, net | | | 0.5 | | | | — | | | | (4.7 | ) | | | — | | | | — | | | | (4.2 | ) |
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Earnings (Loss) Before Income Taxes and Cumulative Effect of Change in Accounting Principle | | | 33.0 | | | | (76.4 | ) | | | 4.7 | | | | — | | | | — | | | | (38.7 | ) |
Income tax expense (benefit) | | | 42.5 | | | | (5.9 | ) | | | — | | | | — | | | | 23.2 | | | | 59.8 | |
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Earnings (Loss) before Cumulative Effect of Change in Accounting Principle | | | (9.5 | ) | | | (70.5 | ) | | | 4.7 | | | | — | | | | (23.2 | ) | | | (98.5 | ) |
Cumulative effect of change in accounting principle, net of applicable income tax benefit | | | — | | | | — | | | | — | | | | 1,417.9 | | | | — | | | | 1,417.9 | |
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Net Earnings (Loss) | | $ | (9.5 | ) | | $ | (70.5 | ) | | $ | 4.7 | | | $ | (1,417.9 | ) | | $ | (23.2 | ) | | $ | (1,516.4 | ) |
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