þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended June 30, 2010
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or
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|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from _____________ to _____________
|
|
Delaware
|
36-3161171
|
(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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One Dauch Drive, Detroit, Michigan
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48211-1198
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(Address of Principal Executive Offices)
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(Zip Code)
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Page Number
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·
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global economic conditions;
|
·
|
our ability to comply with the definitive terms and conditions of various commercial and financing arrangements with GM;
|
·
|
reduced purchases of our products by GM, Chrysler or other customers;
|
·
|
reduced demand for our customers’ products (particularly light trucks and SUVs produced by GM and Chrysler);
|
·
|
availability of financing for working capital, capital expenditures, R&D or other general corporate purposes, including our ability to comply with financial covenants;
|
·
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our customers’ and suppliers’ availability of financing for working capital, capital expenditures, R&D or other general corporate purposes;
|
·
|
the impact on us and our customers of requirements imposed on, or actions taken by, our customers in response to the U.S. government’s ownership interest, the Troubled Asset Relief Program or similar programs;
|
·
|
our ability to achieve cost reductions through ongoing restructuring actions;
|
·
|
additional restructuring actions that may occur;
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·
|
our ability to achieve the level of cost reductions required to sustain global cost competitiveness;
|
·
|
our ability to maintain satisfactory labor relations and avoid future work stoppages;
|
·
|
our suppliers’, our customers’ and their suppliers’ ability to maintain satisfactory labor relations and avoid work stoppages;
|
·
|
our ability to continue to implement improvements in our U.S. labor cost structure;
|
·
|
supply shortages or price increases in raw materials, utilities or other operating supplies;
|
·
|
currency rate fluctuations;
|
·
|
our ability or our customers’ and suppliers’ ability to successfully launch new product programs on a timely basis;
|
·
|
our ability to realize the expected revenues from our new and incremental business backlog;
|
·
|
our ability to attract new customers and programs for new products;
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·
|
our ability to develop and produce new products that reflect market demand;
|
·
|
lower-than-anticipated market acceptance of new or existing products;
|
·
|
our ability to respond to changes in technology, increased competition or pricing pressures;
|
·
|
price volatility in, or reduced availability of, fuel;
|
·
|
adverse changes in laws, government regulations or market conditions affecting our products or our customers’ products (such as the Corporate Average Fuel Economy (“CAFE”) regulations);
|
·
|
adverse changes in the political stability of our principal markets (particularly North America, Europe, South America and Asia);
|
·
|
liabilities arising from warranty claims, product liability and legal proceedings to which we are or may become a party;
|
·
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changes in liabilities arising from pension and other postretirement benefit obligations;
|
·
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risks of noncompliance with environmental regulations or risks of environmental issues that could result in unforeseen costs at our facilities;
|
·
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our ability to attract and retain key associates;
|
·
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other unanticipated events and conditions that may hinder our ability to compete.
|
Three months ended |
Six months ended
|
|||||||||||||||||
June 30, |
June 30,
|
|||||||||||||||||
2010 |
2009
|
2010 |
2009
|
|
||||||||||||||
(in millions, except per share data) | ||||||||||||||||||
Net sales
|
$ | 559.6 | $ | 245.6 | $ | 1,081.5 | $ | 648.0 | ||||||||||
Cost of goods sold |
460.7
|
460.7 | 895.3 | 836.0 | ||||||||||||||
Gross profit (loss) |
98.9
|
(215.1 | ) | 186.2 | (188.0 | ) | ||||||||||||
Selling, general and administrative expenses |
48.5
|
45.5 | 93.8 | 89.3 | ||||||||||||||
Operating income (loss) |
50.4
|
(260.6 | ) | 92.4 | (277.3 | ) | ||||||||||||
Interest expense |
(22.6
|
) | (19.7 | ) | (45.3 | ) | (40.1 | ) | ||||||||||
Investment income
|
0.6 | 1.0 | 1.0 | 2.0 | ||||||||||||||
Other expense, net
|
(0.7 | ) | (2.9 | ) | (2.2 | ) | (3.7 | ) | ||||||||||
Income (loss) before income taxes
|
27.7 | (282.2 | ) | 45.9 | (319.1 | ) | ||||||||||||
Income tax expense
|
2.4 | 6.5 | 4.4 | 2.3 | ||||||||||||||
Net income (loss)
|
25.3 | (288.7 | ) | 41.5 | (321.4 | ) | ||||||||||||
Net loss attributable to the noncontrolling interests
|
0.1 | 0.1 | 0.2 | 0.1 | ||||||||||||||
Net income (loss) attributable to AAM
|
$ | 25.4 | $ | (288.6 | ) | $ | 41.7 | $ | (321.3 | ) | ||||||||
Basic earnings (loss) per share
|
$ | 0.36 | $ | (5.20 | ) | $ | 0.58 | $ | (5.79 | ) | ||||||||
Diluted earnings (loss) per share
|
$ | 0.34 | $ | (5.20 | ) | $ | 0.56 | $ | (5.79 | ) | ||||||||
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
|
(Unaudited)
|
|||||||
Assets
|
(in millions)
|
|||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 238.7 | $ | 178.1 | ||||
Short-term investments
|
2.8 | 4.2 | ||||||
Accounts receivable, net
|
172.4 | 129.7 | ||||||
Inventories, net
|
116.6 | 90.6 | ||||||
Prepaid expenses and other current assets
|
65.2 | 114.0 | ||||||
Total current assets
|
595.7 | 516.6 | ||||||
Property, plant and equipment, net
|
922.6 | 946.7 | ||||||
Goodwill
|
147.8 | 147.8 | ||||||
GM postretirement cost sharing asset
|
214.4 | 219.9 | ||||||
Other assets and deferred charges
|
147.2 | 155.8 | ||||||
Total assets
|
$ | 2,027.7 | $ | 1,986.8 | ||||
Liabilities and Stockholders’ Deficit
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 287.6 | $ | 200.9 | ||||
Accrued compensation and benefits
|
105.9 | 98.9 | ||||||
Deferred revenue
|
80.6 | 76.1 | ||||||
Accrued expenses and other current liabilities
|
89.9 | 69.6 | ||||||
Total current liabilities
|
564.0 | 445.5 | ||||||
Long-term debt
|
1,012.6 | 1,071.4 | ||||||
Deferred revenue
|
155.6 | 189.7 | ||||||
Postretirement benefits and other long-term liabilities
|
815.9 | 840.1 | ||||||
Total liabilities
|
2,548.1 | 2,546.7 | ||||||
Stockholders' deficit
|
||||||||
Common stock, par value $0.01 per share
|
0.8 | 0.8 | ||||||
Paid-in capital
|
585.0 | 579.9 | ||||||
Accumulated deficit
|
(860.0 | ) | (901.7 | ) | ||||
Treasury stock at cost, 5.5 million shares as of June 30, 2010 and
|
||||||||
5.4 million shares as of December 31, 2009
|
(176.0 | ) | (174.8 | ) | ||||
Accumulated other comprehensive income (loss), net of tax
|
||||||||
Defined benefit plans
|
(99.8 | ) | (101.8 | ) | ||||
Foreign currency translation adjustments
|
29.4 | 37.4 | ||||||
Unrecognized gain on derivatives
|
0.1 | - | ||||||
Total AAM stockholders' deficit
|
(520.5 | ) | (560.2 | ) | ||||
Noncontrolling interest in subsidiaries
|
0.1 | 0.3 | ||||||
Total stockholders’ deficit
|
(520.4 | ) | (559.9 | ) | ||||
Total liabilities and stockholders' deficit
|
$ | 2,027.7 | $ | 1,986.8 |
Six months ended
|
||||||||
June 30,
|
||||||||
2010
|
2009
|
|||||||
(in millions)
|
||||||||
Operating activities
|
||||||||
Net income (loss)
|
$ | 41.5 | $ | (321.4 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
|
||||||||
Depreciation and amortization
|
64.4 | 72.5 | ||||||
Asset impairments and related indirect inventory obsolescence
|
8.7 | 151.7 | ||||||
Deferred income taxes
|
- | (1.3 | ) | |||||
Stock-based compensation
|
4.9 | 7.5 | ||||||
Pensions and other postretirement benefits, net of contributions
|
(16.3 | ) | (18.8 | ) | ||||
Loss on retirement of equipment
|
0.1 | 0.8 | ||||||
Changes in operating assets and liabilities
|
||||||||
Accounts receivable
|
(43.0 | ) | 128.4 | |||||
AAM-GM Agreement receivable
|
- | 60.0 | ||||||
Inventories
|
(26.6 | ) | 6.6 | |||||
Accounts payable and accrued expenses
|
117.1 | (121.2 | ) | |||||
Deferred revenue
|
(29.6 | ) | (22.3 | ) | ||||
Other assets and liabilities
|
43.7 | 31.1 | ||||||
Net cash provided by (used in) operating activities
|
164.9 | (26.4 | ) | |||||
Investing activities
|
||||||||
Purchases of property, plant and equipment
|
(36.9 | ) | (81.0 | ) | ||||
Purchase buyouts of leased equipment
|
(7.4 | ) | - | |||||
Proceeds from sale of equipment
|
1.2 | 0.5 | ||||||
Investment in joint venture
|
- | (10.2 | ) | |||||
Redemption of short-term investments
|
1.6 | 66.0 | ||||||
Net cash used in investing activities
|
(41.5 | ) | (24.7 | ) | ||||
Financing activities
|
||||||||
Net short-term borrowings (repayments) under revolving credit facilities
|
(60.0 | ) | 125.1 | |||||
Payments of long-term debt and capital lease obligations
|
(4.8 | ) | (4.9 | ) | ||||
Debt issuance costs
|
(2.2 | ) | (2.7 | ) | ||||
Proceeds from issuance of long-term debt
|
7.3 | 3.4 | ||||||
Repurchase of treasury stock
|
(1.3 | ) | (0.1 | ) | ||||
Net cash provided by (used in) financing activities
|
(61.0 | ) | 120.8 | |||||
Effect of exchange rate changes on cash
|
(1.8 | ) | 3.9 | |||||
Net increase in cash and cash equivalents
|
60.6 | 73.6 | ||||||
Cash and cash equivalents at beginning of period
|
178.1 | 198.8 | ||||||
Cash and cash equivalents at end of period
|
$ | 238.7 | $ | 272.4 | ||||
Supplemental cash flow information
|
||||||||
Interest paid
|
$ | 20.3 | $ | 38.0 | ||||
Income taxes paid (refunds received)
|
$ | (45.1 | ) | $ | 2.8 |
2.
|
RESTRUCTURING ACTIONS
|
One-time
|
Indirect
|
Asset
|
Contract
|
|||||||||||||||||||||
Termination
|
Asset
|
Inventory
|
Retirement
|
Related
|
||||||||||||||||||||
Benefits
|
Impairments
|
Obsolescence
|
Obligations
|
Costs
|
Total
|
|||||||||||||||||||
Accrual as of December 31, 2009
|
$ | 8.0 | $ | - | $ | - | $ | 1.3 | $ | 21.3 | $ | 30.6 | ||||||||||||
Charges
|
- | 8.4 | 0.3 | 0.1 | - | 8.8 | ||||||||||||||||||
Cash utilization
|
(2.7 | ) | - | - | - | (3.6 | ) | (6.3 | ) | |||||||||||||||
Non-cash utilization
|
- | (8.4 | ) | (0.3 | ) | - | - | (8.7 | ) | |||||||||||||||
Accrual adjustments
|
(0.3 | ) | - | - | - | (2.0 | ) | (2.3 | ) | |||||||||||||||
Accrual as of June 30, 2010
|
$ | 5.0 | $ | - | $ | - | $ | 1.4 | $ | 15.7 | $ | 22.1 |
3.
|
SUPPLEMENTAL UNEMPLOYMENT BENEFITS
|
4.
|
INVENTORIES
|
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(in millions)
|
||||||||
Raw materials and work-in-progress
|
$ | 126.5 | $ | 101.3 | ||||
Finished goods
|
20.7 | 23.0 | ||||||
Gross inventories
|
147.2 | 124.3 | ||||||
Inventory valuation reserves
|
(30.6 | ) | (33.7 | ) | ||||
Inventories, net
|
$ | 116.6 | $ | 90.6 |
5.
|
LONG-TERM DEBT
|
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(in millions)
|
||||||||
Revolving Credit Facility
|
$ | - | $ | 60.0 | ||||
9.25% Notes, net of discount
|
419.9 | 419.6 | ||||||
7.875% Notes
|
300.0 | 300.0 | ||||||
5.25% Notes, net of discount
|
249.9 | 249.9 | ||||||
2.00% Convertible Notes
|
0.4 | 0.4 | ||||||
Foreign credit facilities
|
35.4 | 34.1 | ||||||
Capital lease obligations
|
7.0 | 7.4 | ||||||
Long-term debt
|
$ | 1,012.6 | $ | 1,071.4 |
6.
|
DERIVATIVES
|
Gain (Loss) Reclassified
|
Gain (Loss) Expected to be
|
|||||||||||||||||||||
Location of Gain (Loss) |
|
Three months ended
|
Six months ended |
Reclassified
|
||||||||||||||||||
Reclassified into |
|
June 30,
|
June 30, |
During the
|
||||||||||||||||||
Net Income (Loss) |
|
2010
|
2009
|
2010
|
2009 |
Next 12 Months
|
||||||||||||||||
(in millions)
|
||||||||||||||||||||||
Currency forward contracts
|
Cost of Goods Sold |
|
$ | - | $ | (2.2 | ) | $ | - | $ | (4.6 | ) | $ | 0.1 | ||||||||
Interest rate hedges
|
Interest Expense
|
|
- | (1.0 | ) | - | (2.0 | ) | - |
·
|
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.
|
June 30, 2010 |
December 31, 2009
|
||||||||||||||||
Carrying Amount |
Fair Value
|
Carrying Amount |
|
Fair Value
|
Input
|
||||||||||||
(in millions)
|
(in millions) | ||||||||||||||||
Balance Sheet Classification
|
|
||||||||||||||||
Cash equivalents
|
$ | 121.2 | $ | 121.2 | $ | 77.0 | $ | 77.0 |
Level 1
|
||||||||
Short-term investments
|
2.8 | 2.8 | 4.2 | 4.2 |
Level 2
|
||||||||||||
Prepaid expenses and other current assets
|
|||||||||||||||||
Currency forward contracts
|
0.1 | 0.1 | - | - |
Level 2
|
June 30, 2010
|
December 31, 2009 | |||||||||||||||||
Carrying Amount
|
Fair Value |
Carrying Amount
|
Fair Value |
Input
|
||||||||||||||
(in millions)
|
(in millions)
|
|
||||||||||||||||
Revolving Credit Facility
|
$ | - | $ | - | $ | 60.0 | $ | 57.0 |
Level 2
|
|||||||||
9.25% Notes
|
419.9 | 433.5 | 419.6 | 433.5 |
Level 2
|
|||||||||||||
7.875% Notes
|
300.0 | 259.5 | 300.0 | 258.0 |
Level 2
|
|||||||||||||
5.25% Notes
|
249.9 | 210.0 | 249.9 | 212.5 |
Level 2
|
Fair Value Measurements using Level 3 Inputs
|
Asset impairment recorded in six months ended June 30, 2010
|
|||||||
Balance Sheet Classification
|
||||||||
Property, plant and equipment, net
|
$ | - | $ | 7.6 | ||||
Other assets and deferred charges
|
- | 0.8 |
8.
|
EMPLOYEE BENEFIT PLANS
|
Pension Benefits
|
|||||||||||||||||
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
|
June 30,
|
||||||||||||||||
2010
|
2009
|
2010
|
2009 | ||||||||||||||
(in millions)
|
|||||||||||||||||
Service cost
|
$ | 1.3 | $ | 1.4 | $ | 2.5 | $ | 2.7 | |||||||||
Interest cost
|
9.2 | 8.9 | 18.5 | 17.8 | |||||||||||||
Expected asset return
|
(8.0 | ) | (7.5 | ) | (16.0 | ) | (15.4 | ) | |||||||||
Amortized loss
|
0.6 | 0.2 | 1.2 | 0.6 | |||||||||||||
Curtailment
|
- | 0.2 | - | (1.8 | ) | ||||||||||||
Special and contractual termination benefits
|
- | 2.1 | - | 2.5 | |||||||||||||
Net periodic benefit cost
|
$ | 3.1 | $ | 5.3 | $ | 6.2 | $ | 6.4 | |||||||||
Other Postretirement Benefits
|
|||||||||||||||||
Three months ended
|
Six months ended
|
||||||||||||||||
June 30,
|
June 30,
|
||||||||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||||||||
(in millions)
|
|||||||||||||||||
Service cost
|
$ | 0.2 | $ | 0.7 | $ | 0.5 | $ | 1.4 | |||||||||
Interest cost
|
4.0 | 4.6 | 8.0 | 9.2 | |||||||||||||
Amortized gain
|
(0.4 | ) | (0.7 | ) | (0.7 | ) | (1.2 | ) | |||||||||
Amortized prior service credit
|
(0.7 | ) | (1.6 | ) | (1.5 | ) | (3.3 | ) | |||||||||
Curtailment
|
- | (17.4 | ) | - | (20.5 | ) | |||||||||||
Special and contractual termination benefits
|
- | (0.7 | ) | - | (0.7 | ) | |||||||||||
Net periodic benefit cost (credit)
|
$ | 3.1 | $ | (15.1 | ) | $ | 6.3 | $ | (15.1 | ) |
9.
|
PRODUCT WARRANTIES
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(in millions)
|
||||||||||||||||
Beginning balance
|
$ | 2.0 | $ | 2.5 | $ | 2.1 | $ | 2.6 | ||||||||
Accruals
|
0.2 | - | 0.4 | 0.1 | ||||||||||||
Settlements
|
(0.1 | ) | - | (0.2 | ) | (0.1 | ) | |||||||||
Adjustment to prior period accruals
|
(0.1 | ) | (0.3 | ) | (0.2 | ) | (0.4 | ) | ||||||||
Foreign currency translation and other
|
- | 0.2 | (0.1 | ) | 0.2 | |||||||||||
Ending balance
|
$ | 2.0 | $ | 2.4 | $ | 2.0 | $ | 2.4 |
10.
|
INCOME TAXES
|
11.
|
COMPREHENSIVE INCOME (LOSS)
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(in millions)
|
||||||||||||||||
Net income (loss)
|
$ | 25.3 | $ | (288.7 | ) | $ | 41.5 | $ | (321.4 | ) | ||||||
Defined benefit plans, net of tax
|
(0.3 | ) | (25.4 | ) | 2.0 | (15.4 | ) | |||||||||
Foreign currency translation adjustments, net of tax
|
(2.8 | ) | 22.0 | (8.0 | ) | 22.4 | ||||||||||
Change in derivatives, net of tax
|
0.1 | 4.4 | 0.1 | 6.8 | ||||||||||||
Comprehensive income (loss)
|
$ | 22.3 | $ | (287.7 | ) | $ | 35.6 | $ | (307.6 | ) | ||||||
Net loss attributable to the noncontrolling interests
|
0.1 | 0.1 | 0.2 | 0.1 | ||||||||||||
Foreign currency translation adjustments related to noncontrolling interests
|
(0.1 | ) | - | - | (0.2 | ) | ||||||||||
Comprehensive income (loss) attributable to AAM
|
$ | 22.3 | $ | (287.6 | ) | $ | 35.8 | $ | (307.7 | ) |
12.
|
EARNINGS (LOSS) PER SHARE (EPS)
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(in millions, except per share data)
|
||||||||||||||||
Numerator
|
||||||||||||||||
Net income (loss) attributable to AAM
|
$ | 25.4 | $ | (288.6 | ) | $ | 41.7 | $ | (321.3 | ) | ||||||
Denominator
|
||||||||||||||||
Basic shares outstanding -
|
||||||||||||||||
Weighted-average shares outstanding
|
71.5 | 55.5 | 71.5 | 55.5 | ||||||||||||
Effect of dilutive securities
|
||||||||||||||||
Dilutive stock-based compensation
|
0.1 | - | 0.1 | - | ||||||||||||
Dilutive warrants
|
2.9 | - | 2.9 | - | ||||||||||||
Diluted shares outstanding -
|
||||||||||||||||
Adjusted weighted-average shares after assumed conversions
|
74.5 | 55.5 | 74.5 | 55.5 | ||||||||||||
Basic EPS
|
$ | 0.36 | $ | (5.20 | ) | $ | 0.58 | $ | (5.79 | ) | ||||||
Diluted EPS
|
$ | 0.34 | $ | (5.20 | ) | $ | 0.56 | $ | (5.79 | ) |
13.
|
SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS – 7.875% NOTES, 5.25% NOTES AND 2.00% CONVERTIBLE NOTES
|
Condensed Consolidating Statements of Operations
|
||||||||||||||||||||
Three months ended, June 30,
(in millions)
|
||||||||||||||||||||
Holdings
|
AAM Inc.
|
All Others
|
Elims
|
Consolidated
|
||||||||||||||||
2010
|
||||||||||||||||||||
Net sales
|
||||||||||||||||||||
External
|
$ | - | $ | 136.7 | $ | 422.9 | $ | - | $ | 559.6 | ||||||||||
Intercompany
|
- | 7.4 | 45.1 | (52.5 | ) | - | ||||||||||||||
Total net sales
|
- | 144.1 | 468.0 | (52.5 | ) | 559.6 | ||||||||||||||
Cost of goods sold
|
- | 134.0 | 379.2 | (52.5 | ) | 460.7 | ||||||||||||||
Gross profit
|
- | 10.1 | 88.8 | - | 98.9 | |||||||||||||||
Selling, general and administrative expenses
|
- | 44.5 | 4.0 | - | 48.5 | |||||||||||||||
Operating income (loss)
|
- | (34.4 | ) | 84.8 | - | 50.4 | ||||||||||||||
Non-operating expense, net
|
- | (22.0 | ) | (0.7 | ) | - | (22.7 | ) | ||||||||||||
Income (loss) before income taxes
|
- | (56.4 | ) | 84.1 | - | 27.7 | ||||||||||||||
Income tax expense
|
- | 0.5 | 1.9 | - | 2.4 | |||||||||||||||
Earnings from equity in subsidiaries
|
25.4 | 62.5 | - | (87.9 | ) | - | ||||||||||||||
Net income before royalties and dividends
|
25.4 | 5.6 | 82.2 | (87.9 | ) | 25.3 | ||||||||||||||
Royalties and dividends
|
- | 19.8 | (19.8 | ) | - | - | ||||||||||||||
Net income after royalties and dividends
|
25.4 | 25.4 | 62.4 | (87.9 | ) | 25.3 | ||||||||||||||
Net loss attributable to noncontrolling interest
|
- | - | 0.1 | - | 0.1 | |||||||||||||||
Net income attributable to AAM
|
$ | 25.4 | $ | 25.4 | $ | 62.5 | $ | (87.9 | ) | $ | 25.4 | |||||||||
2009
|
||||||||||||||||||||
Net sales
|
||||||||||||||||||||
External
|
$ | - | $ | 111.5 | $ | 134.1 | $ | - | $ | 245.6 | ||||||||||
Intercompany
|
- | 5.4 | 14.8 | (20.2 | ) | - | ||||||||||||||
Total net sales
|
- | 116.9 | 148.9 | (20.2 | ) | 245.6 | ||||||||||||||
Cost of goods sold
|
- | 269.9 | 211.0 | (20.2 | ) | 460.7 | ||||||||||||||
Gross loss
|
- | (153.0 | ) | (62.1 | ) | - | (215.1 | ) | ||||||||||||
Selling, general and administrative expenses
|
- | 43.5 | 2.0 | - | 45.5 | |||||||||||||||
Operating loss
|
- | (196.5 | ) | (64.1 | ) | - | (260.6 | ) | ||||||||||||
Non-operating expense, net
|
- | (20.1 | ) | (1.5 | ) | - | (21.6 | ) | ||||||||||||
Loss before income taxes
|
- | (216.6 | ) | (65.6 | ) | - | (282.2 | ) | ||||||||||||
Income tax expense (benefit)
|
- | 7.3 | (0.8 | ) | - | 6.5 | ||||||||||||||
Loss from equity in subsidiaries
|
(288.6 | ) | (69.8 | ) | - | 358.4 | - | |||||||||||||
Net loss before royalties and dividends
|
(288.6 | ) | (293.7 | ) | (64.8 | ) | 358.4 | (288.7 | ) | |||||||||||
Royalties and dividends
|
- | 5.1 | (5.1 | ) | - | - | ||||||||||||||
Net loss after royalties and dividends
|
(288.6 | ) | (288.6 | ) | (69.9 | ) | 358.4 | (288.7 | ) | |||||||||||
Net loss attributable to noncontrolling interest
|
- | - | 0.1 | - | 0.1 | |||||||||||||||
Net loss attributable to AAM
|
$ | (288.6 | ) | $ | (288.6 | ) | $ | (69.8 | ) | $ | 358.4 | $ | (288.6 | ) |
Condensed Consolidating Statements of Operations
|
||||||||||||||||||||
Six months ended, June 30,
(in millions)
|
||||||||||||||||||||
Holdings
|
AAM Inc.
|
All Others
|
Elims
|
Consolidated
|
||||||||||||||||
2010
|
||||||||||||||||||||
Net sales
|
||||||||||||||||||||
External
|
$ | - | $ | 255.0 | $ | 826.5 | $ | - | $ | 1,081.5 | ||||||||||
Intercompany
|
- | 14.4 | 84.5 | (98.9 | ) | - | ||||||||||||||
Total net sales
|
- | 269.4 | 911.0 | (98.9 | ) | 1,081.5 | ||||||||||||||
Cost of goods sold
|
- | 262.7 | 731.5 | (98.9 | ) | 895.3 | ||||||||||||||
Gross profit
|
- | 6.7 | 179.5 | - | 186.2 | |||||||||||||||
Selling, general and administrative expenses
|
- | 86.3 | 7.5 | - | 93.8 | |||||||||||||||
Operating income (loss)
|
- | (79.6 | ) | 172.0 | - | 92.4 | ||||||||||||||
Non-operating expense, net
|
- | (44.5 | ) | (2.0 | ) | - | (46.5 | ) | ||||||||||||
Income (loss) before income taxes
|
- | (124.1 | ) | 170.0 | - | 45.9 | ||||||||||||||
Income tax expense
|
- | 0.2 | 4.2 | - | 4.4 | |||||||||||||||
Earnings from equity in subsidiaries
|
41.7 | 127.5 | - | (169.2 | ) | - | ||||||||||||||
Net income before royalties and dividends
|
41.7 | 3.2 | 165.8 | (169.2 | ) | 41.5 | ||||||||||||||
Royalties and dividends
|
- | 38.5 | (38.5 | ) | - | - | ||||||||||||||
Net income after royalties and dividends
|
41.7 | 41.7 | 127.3 | (169.2 | ) | 41.5 | ||||||||||||||
Net loss attributable to noncontrolling interest
|
- | - | 0.2 | - | 0.2 | |||||||||||||||
Net income attributable to AAM
|
$ | 41.7 | $ | 41.7 | $ | 127.5 | $ | (169.2 | ) | $ | 41.7 | |||||||||
2009
|
||||||||||||||||||||
Net sales
|
||||||||||||||||||||
External
|
$ | - | $ | 293.1 | $ | 354.9 | $ | - | $ | 648.0 | ||||||||||
Intercompany
|
- | 13.0 | 43.2 | (56.2 | ) | - | ||||||||||||||
Total net sales
|
- | 306.1 | 398.1 | (56.2 | ) | 648.0 | ||||||||||||||
Cost of goods sold
|
- | 457.7 | 434.5 | (56.2 | ) | 836.0 | ||||||||||||||
Gross loss
|
- | (151.6 | ) | (36.4 | ) | - | (188.0 | ) | ||||||||||||
Selling, general and administrative expenses
|
- | 84.6 | 4.7 | - | 89.3 | |||||||||||||||
Operating loss
|
- | (236.2 | ) | (41.1 | ) | - | (277.3 | ) | ||||||||||||
Non-operating expense, net
|
- | (40.8 | ) | (1.0 | ) | - | (41.8 | ) | ||||||||||||
Loss before income taxes
|
- | (277.0 | ) | (42.1 | ) | - | (319.1 | ) | ||||||||||||
Income tax expense
|
- | 1.6 | 0.7 | - | 2.3 | |||||||||||||||
Loss from equity in subsidiaries
|
(321.3 | ) | (57.4 | ) | - | 378.7 | - | |||||||||||||
Net loss before royalties and dividends
|
(321.3 | ) | (336.0 | ) | (42.8 | ) | 378.7 | (321.4 | ) | |||||||||||
Royalties and dividends
|
- | 14.7 | (14.7 | ) | - | - | ||||||||||||||
Net loss after royalties and dividends
|
(321.3 | ) | (321.3 | ) | (57.5 | ) | 378.7 | (321.4 | ) | |||||||||||
Net loss attributable to noncontrolling interest
|
- | - | 0.1 | - | 0.1 | |||||||||||||||
Net loss attributable to AAM
|
$ | (321.3 | ) | $ | (321.3 | ) | $ | (57.4 | ) | $ | 378.7 | $ | (321.3 | ) |
Condensed Consolidating Balance Sheets
(in millions)
|
||||||||||||||||||||
Holdings
|
AAM Inc.
|
All Others
|
Elims
|
Consolidated
|
||||||||||||||||
June 30, 2010
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Current assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 56.1 | $ | 182.6 | $ | - | $ | 238.7 | ||||||||||
Short-term investments
|
- | - | 2.8 | - | 2.8 | |||||||||||||||
Accounts receivable, net
|
- | 29.3 | 143.1 | - | 172.4 | |||||||||||||||
Inventories, net
|
- | 30.4 | 86.2 | - | 116.6 | |||||||||||||||
Other current assets
|
- | 32.1 | 33.1 | - | 65.2 | |||||||||||||||
Total current assets
|
- | 147.9 | 447.8 | - | 595.7 | |||||||||||||||
Property, plant and equipment, net
|
- | 270.8 | 651.8 | - | 922.6 | |||||||||||||||
Goodwill
|
- | - | 147.8 | - | 147.8 | |||||||||||||||
Other assets and deferred charges
|
- | 294.7 | 66.9 | - | 361.6 | |||||||||||||||
Investment in subsidiaries
|
- | 846.6 | - | (846.6 | ) | - | ||||||||||||||
Total assets
|
$ | - | $ | 1,560.0 | $ | 1,314.3 | $ | (846.6 | ) | $ | 2,027.7 | |||||||||
Liabilities and stockholders’ equity (deficit)
|
||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||
Accounts payable
|
$ | - | $ | 82.2 | $ | 205.4 | $ | - | $ | 287.6 | ||||||||||
Accrued expenses and other current liabilities
|
- | 206.1 | 70.3 | - | 276.4 | |||||||||||||||
Total current liabilities
|
- | 288.3 | 275.7 | - | 564.0 | |||||||||||||||
Intercompany payable (receivable)
|
319.9 | (389.3 | ) | 69.4 | - | - | ||||||||||||||
Long-term debt
|
0.4 | 969.8 | 42.4 | - | 1,012.6 | |||||||||||||||
Investment in subsidiaries obligation
|
200.2 | - | - | (200.2 | ) | - | ||||||||||||||
Other long-term liabilities
|
- | 891.4 | 80.1 | - | 971.5 | |||||||||||||||
Total liabilities
|
520.5 | 1,760.2 | 467.6 | (200.2 | ) | 2,548.1 | ||||||||||||||
Total AAM stockholders’ equity (deficit)
|
(520.5 | ) | (200.2 | ) | 846.6 | (646.4 | ) | (520.5 | ) | |||||||||||
Noncontrolling interest in subsidiaries
|
- | - | 0.1 | - | 0.1 | |||||||||||||||
Total stockholders’ equity (deficit)
|
(520.5 | ) | (200.2 | ) | 846.7 | (646.4 | ) | (520.4 | ) | |||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | - | $ | 1,560.0 | $ | 1,314.3 | $ | (846.6 | ) | $ | 2,027.7 | |||||||||
December 31, 2009
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Current assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 80.6 | $ | 97.5 | $ | - | $ | 178.1 | ||||||||||
Short-term investments
|
- | 1.4 | 2.8 | - | 4.2 | |||||||||||||||
Accounts receivable, net
|
- | 10.9 | 118.8 | - | 129.7 | |||||||||||||||
Inventories, net
|
- | 22.8 | 67.8 | - | 90.6 | |||||||||||||||
Other current assets
|
- | 86.4 | 27.6 | - | 114.0 | |||||||||||||||
Total current assets
|
- | 202.1 | 314.5 | - | 516.6 | |||||||||||||||
Property, plant and equipment, net
|
- | 272.8 | 673.9 | - | 946.7 | |||||||||||||||
Goodwill
|
- | - | 147.8 | - | 147.8 | |||||||||||||||
Other assets and deferred charges
|
- | 304.8 | 70.9 | - | 375.7 | |||||||||||||||
Investment in subsidiaries
|
- | 725.9 | - | (725.9 | ) | - | ||||||||||||||
Total assets
|
$ | - | $ | 1,505.6 | $ | 1,207.1 | $ | (725.9 | ) | $ | 1,986.8 | |||||||||
Liabilities and stockholders’ equity (deficit)
|
||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||
Accounts payable
|
$ | - | $ | 59.4 | $ | 141.5 | $ | - | $ | 200.9 | ||||||||||
Accrued expenses and other current liabilities
|
- | 185.1 | 59.5 | - | 244.6 | |||||||||||||||
Total current liabilities
|
- | 244.5 | 201.0 | - | 445.5 | |||||||||||||||
Intercompany payable (receivable)
|
318.8 | (470.1 | ) | 151.3 | - | - | ||||||||||||||
Long-term debt
|
0.4 | 1,029.4 | 41.6 | - | 1,071.4 | |||||||||||||||
Investment in subsidiaries obligation
|
241.0 | - | - | (241.0 | ) | - | ||||||||||||||
Other long-term liabilities
|
- | 942.8 | 87.0 | - | 1,029.8 | |||||||||||||||
Total liabilities
|
560.2 | 1,746.6 | 480.9 | (241.0 | ) | 2,546.7 | ||||||||||||||
Total AAM stockholders’ equity (deficit)
|
(560.2 | ) | (241.0 | ) | 725.9 | (484.9 | ) | (560.2 | ) | |||||||||||
Noncontrolling interest in subsidiaries
|
- | - | 0.3 | - | 0.3 | |||||||||||||||
Total stockholders’ equity (deficit)
|
(560.2 | ) | (241.0 | ) | 726.2 | (484.9 | ) | (559.9 | ) | |||||||||||
Total liabilities and shareholders’ equity (deficit)
|
$ | - | $ | 1,505.6 | $ | 1,207.1 | $ | (725.9 | ) | $ | 1,986.8 |
Condensed Consolidating Statements of Cash Flows
|
||||||||||||||||||||
Six months ended June 30,
(in millions)
|
||||||||||||||||||||
Holdings
|
AAM Inc.
|
All Others
|
Elims
|
Consolidated
|
||||||||||||||||
2010
|
||||||||||||||||||||
Operating activities
|
||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$ | - | $ | (32.4 | ) | $ | 197.3 | $ | - | $ | 164.9 | |||||||||
Investing activities
|
||||||||||||||||||||
Purchases of property, plant and equipment
|
- | (12.5 | ) | (24.4 | ) | - | (36.9 | ) | ||||||||||||
Purchase buyouts of leased equipment
|
- | (7.4 | ) | - | - | (7.4 | ) | |||||||||||||
Redemption of short-term investments
|
- | 1.6 | - | - | 1.6 | |||||||||||||||
Proceeds from sale of equipment
|
- | 1.1 | 0.1 | - | 1.2 | |||||||||||||||
Net cash used in investing activities
|
- | (17.2 | ) | (24.3 | ) | - | (41.5 | ) | ||||||||||||
Financing activities
|
||||||||||||||||||||
Net debt activity
|
- | (59.6 | ) | 2.1 | - | (57.5 | ) | |||||||||||||
Intercompany activity
|
1.3 | 86.9 | (88.2 | ) | - | - | ||||||||||||||
Debt issuance costs
|
- | (2.2 | ) | - | - | (2.2 | ) | |||||||||||||
Purchase of treasury stock
|
(1.3 | ) | - | - | - | (1.3 | ) | |||||||||||||
Net cash provided by (used in) financing activities
|
- | 25.1 | (86.1 | ) | - | (61.0 | ) | |||||||||||||
Effect of exchange rate changes on cash
|
- | - | (1.8 | ) | - | (1.8 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents
|
- | (24.5 | ) | 85.1 | - | 60.6 | ||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 80.6 | 97.5 | - | 178.1 | |||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 56.1 | $ | 182.6 | $ | - | $ | 238.7 | ||||||||||
2009
|
||||||||||||||||||||
Operating activities
|
||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$ | - | $ | (60.3 | ) | $ | 33.9 | $ | - | $ | (26.4 | ) | ||||||||
Investing activities
|
||||||||||||||||||||
Purchases of property, plant and equipment
|
- | (32.1 | ) | (48.9 | ) | - | (81.0 | ) | ||||||||||||
Redemption of short-term investments
|
- | 5.9 | 60.1 | - | 66.0 | |||||||||||||||
Investment in joint venture
|
- | - | (10.2 | ) | - | (10.2 | ) | |||||||||||||
Proceeds from sale of equipment
|
- | 0.5 | - | - | 0.5 | |||||||||||||||
Net cash provided by (used in) investing activities
|
- | (25.7 | ) | 1.0 | - | (24.7 | ) | |||||||||||||
Financing activities
|
||||||||||||||||||||
Net debt activity
|
- | 132.5 | (8.9 | ) | - | 123.6 | ||||||||||||||
Intercompany activity
|
0.1 | (62.1 | ) | 62.0 | - | - | ||||||||||||||
Debt issuance costs
|
- | (2.7 | ) | - | - | (2.7 | ) | |||||||||||||
Purchase of treasury stock
|
(0.1 | ) | - | - | - | (0.1 | ) | |||||||||||||
Net cash provided by financing activities
|
- | 67.7 | 53.1 | - | 120.8 | |||||||||||||||
Effect of exchange rate changes on cash
|
- | - | 3.9 | - | 3.9 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
- | (18.3 | ) | 91.9 | - | 73.6 | ||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 54.6 | 144.2 | - | 198.8 | |||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 36.3 | $ | 236.1 | $ | - | $ | 272.4 |
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||
Three months ended June 30,
(in millions)
|
||||||||||||||||||||||||
Holdings
|
AAM Inc.
|
Guarantor Subsidiaries
|
Non-Guarantor Subsidiaries
|
Elims
|
Consolidated
|
|||||||||||||||||||
2010
|
||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||
External
|
$ | - | $ | 136.7 | $ | 46.1 | $ | 376.8 | $ | - | $ | 559.6 | ||||||||||||
Intercompany
|
- | 7.4 | 40.2 | 4.9 | (52.5 | ) | - | |||||||||||||||||
Total net sales
|
- | 144.1 | 86.3 | 381.7 | (52.5 | ) | 559.6 | |||||||||||||||||
Cost of goods sold
|
- | 134.0 | 86.3 | 292.9 | (52.5 | ) | 460.7 | |||||||||||||||||
Gross profit
|
- | 10.1 | - | 88.8 | - | 98.9 | ||||||||||||||||||
Selling, general and administrative expenses
|
- | 44.5 | - | 4.0 | - | 48.5 | ||||||||||||||||||
Operating income (loss)
|
- | (34.4 | ) | - | 84.8 | - | 50.4 | |||||||||||||||||
Non-operating income (expense), net
|
- | (22.0 | ) | 0.1 | (0.8 | ) | - | (22.7 | ) | |||||||||||||||
Income (loss) before income taxes
|
- | (56.4 | ) | 0.1 | 84.0 | - | 27.7 | |||||||||||||||||
Income tax expense
|
- | 0.5 | - | 1.9 | - | 2.4 | ||||||||||||||||||
Earnings (loss) from equity in subsidiaries
|
25.4 | 62.5 | (8.6 | ) | - | (79.3 | ) | - | ||||||||||||||||
Net income (loss) before royalties and dividends
|
25.4 | 5.6 | (8.5 | ) | 82.1 | (79.3 | ) | 25.3 | ||||||||||||||||
Royalties and dividends
|
- | 19.8 | - | (19.8 | ) | - | - | |||||||||||||||||
Net income (loss) after royalties and dividends
|
25.4 | 25.4 | (8.5 | ) | 62.3 | (79.3 | ) | 25.3 | ||||||||||||||||
Net loss attributable to noncontrolling interest
|
- | - | - | 0.1 | - | 0.1 | ||||||||||||||||||
Net income (loss) attributable to AAM
|
$ | 25.4 | $ | 25.4 | $ | (8.5 | ) | $ | 62.4 | $ | (79.3 | ) | $ | 25.4 | ||||||||||
|
Holdings
|
AAM Inc.
|
Guarantor Subsidiaries
|
Non-Guarantor Subsidiaries
|
Elims
|
Consolidated
|
||||||||||||||||||
2009
|
||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||
External
|
$ | - | $ | 111.5 | $ | 28.8 | $ | 105.3 | $ | - | $ | 245.6 | ||||||||||||
Intercompany
|
- | 5.4 | 11.9 | 2.9 | (20.2 | ) | - | |||||||||||||||||
Total net sales
|
- | 116.9 | 40.7 | 108.2 | (20.2 | ) | 245.6 | |||||||||||||||||
Cost of goods sold
|
- | 269.9 | 78.4 | 132.6 | (20.2 | ) | 460.7 | |||||||||||||||||
Gross loss
|
- | (153.0 | ) | (37.7 | ) | (24.4 | ) | - | (215.1 | ) | ||||||||||||||
Selling, general and administrative expenses
|
- | 43.5 | - | 2.0 | - | 45.5 | ||||||||||||||||||
Operating loss
|
- | (196.5 | ) | (37.7 | ) | (26.4 | ) | - | (260.6 | ) | ||||||||||||||
Non-operating expense, net
|
- | (20.1 | ) | (0.1 | ) | (1.4 | ) | - | (21.6 | ) | ||||||||||||||
Loss before income taxes
|
- | (216.6 | ) | (37.8 | ) | (27.8 | ) | - | (282.2 | ) | ||||||||||||||
Income tax expense (benefit)
|
- | 7.3 | - | (0.8 | ) | - | 6.5 | |||||||||||||||||
Earnings (loss) from equity in subsidiaries
|
(288.6 | ) | (69.8 | ) | (21.2 | ) | - | 379.6 | - | |||||||||||||||
Net income (loss) before royalties and dividends
|
(288.6 | ) | (293.7 | ) | (59.0 | ) | (27.0 | ) | 379.6 | (288.7 | ) | |||||||||||||
Royalties and dividends
|
- | 5.1 | - | (5.1 | ) | - | - | |||||||||||||||||
Net income (loss) after royalties and dividends
|
(288.6 | ) | (288.6 | ) | (59.0 | ) | (32.1 | ) | 379.6 | (288.7 | ) | |||||||||||||
Net loss attributable to noncontrolling interest
|
- | - | - | 0.1 | - | 0.1 | ||||||||||||||||||
Net income (loss) attributable to AAM
|
$ | (288.6 | ) | $ | (288.6 | ) | $ | (59.0 | ) | $ | (32.0 | ) | $ | 379.6 | $ | (288.6 | ) | |||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||
Six months ended June 30,
(in millions)
|
||||||||||||||||||||||||
Holdings
|
AAM Inc.
|
Guarantor Subsidiaries
|
Non-Guarantor Subsidiaries
|
Elims
|
Consolidated
|
|||||||||||||||||||
2010
|
||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||
External
|
$ | - | $ | 255.0 | $ | 93.3 | $ | 733.2 | $ | - | $ | 1,081.5 | ||||||||||||
Intercompany
|
- | 14.4 | 77.2 | 7.3 | (98.9 | ) | - | |||||||||||||||||
Total net sales
|
- | 269.4 | 170.5 | 740.5 | (98.9 | ) | 1,081.5 | |||||||||||||||||
Cost of goods sold
|
- | 262.7 | 164.5 | 567.0 | (98.9 | ) | 895.3 | |||||||||||||||||
Gross profit
|
- | 6.7 | 6.0 | 173.5 | - | 186.2 | ||||||||||||||||||
Selling, general and administrative expenses
|
- | 86.3 | - | 7.5 | - | 93.8 | ||||||||||||||||||
Operating income (loss)
|
- | (79.6 | ) | 6.0 | 166.0 | - | 92.4 | |||||||||||||||||
Non-operating income (expense), net
|
- | (44.5 | ) | 0.2 | (2.2 | ) | - | (46.5 | ) | |||||||||||||||
Income (loss) before income taxes
|
- | (124.1 | ) | 6.2 | 163.8 | - | 45.9 | |||||||||||||||||
Income tax expense
|
- | 0.2 | - | 4.2 | - | 4.4 | ||||||||||||||||||
Earnings (loss) from equity in subsidiaries
|
41.7 | 127.5 | (16.2 | ) | - | (153.0 | ) | - | ||||||||||||||||
Net income (loss) before royalties and dividends
|
41.7 | 3.2 | (10.0 | ) | 159.6 | (153.0 | ) | 41.5 | ||||||||||||||||
Royalties and dividends
|
- | 38.5 | - | (38.5 | ) | - | - | |||||||||||||||||
Net income (loss) after royalties and dividends
|
41.7 | 41.7 | (10.0 | ) | 121.1 | (153.0 | ) | 41.5 | ||||||||||||||||
Net loss attributable to noncontrolling interest
|
- | - | - | 0.2 | - | 0.2 | ||||||||||||||||||
Net income (loss) attributable to AAM
|
$ | 41.7 | $ | 41.7 | $ | (10.0 | ) | $ | 121.3 | $ | (153.0 | ) | $ | 41.7 |
|
Holdings
|
AAM Inc.
|
Guarantor Subsidiaries
|
Non-Guarantor Subsidiaries
|
Elims
|
Consolidated
|
||||||||||||||||||
2009
|
||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||
External
|
$ | - | $ | 293.1 | $ | 63.9 | $ | 291.0 | $ | - | $ | 648.0 | ||||||||||||
Intercompany
|
- | 13.0 | 34.7 | 8.5 | (56.2 | ) | - | |||||||||||||||||
Total net sales
|
- | 306.1 | 98.6 | 299.5 | (56.2 | ) | 648.0 | |||||||||||||||||
Cost of goods sold
|
- | 457.7 | 136.8 | 297.7 | (56.2 | ) | 836.0 | |||||||||||||||||
Gross profit (loss)
|
- | (151.6 | ) | (38.2 | ) | 1.8 | - | (188.0 | ) | |||||||||||||||
Selling, general and administrative expenses
|
- | 84.6 | - | 4.7 | - | 89.3 | ||||||||||||||||||
Operating loss
|
- | (236.2 | ) | (38.2 | ) | (2.9 | ) | - | (277.3 | ) | ||||||||||||||
Non-operating expense, net
|
- | (40.8 | ) | (1.1 | ) | 0.1 | - | (41.8 | ) | |||||||||||||||
Loss before income taxes
|
- | (277.0 | ) | (39.3 | ) | (2.8 | ) | - | (319.1 | ) | ||||||||||||||
Income tax expense
|
- | 1.6 | - | 0.7 | - | 2.3 | ||||||||||||||||||
Loss from equity in subsidiaries
|
(321.3 | ) | (57.4 | ) | (26.6 | ) | - | 405.3 | - | |||||||||||||||
Net loss before royalties and dividends
|
(321.3 | ) | (336.0 | ) | (65.9 | ) | (3.5 | ) | 405.3 | (321.4 | ) | |||||||||||||
Royalties and dividends
|
- | 14.7 | - | (14.7 | ) | - | - | |||||||||||||||||
Net loss after royalties and dividends
|
(321.3 | ) | (321.3 | ) | (65.9 | ) | (18.2 | ) | 405.3 | (321.4 | ) | |||||||||||||
Net loss attributable to noncontrolling interest
|
- | - | - | 0.1 | - | 0.1 | ||||||||||||||||||
Net loss attributable to AAM
|
$ | (321.3 | ) | $ | (321.3 | ) | $ | (65.9 | ) | $ | (18.1 | ) | $ | 405.3 | $ | (321.3 | ) | |||||||
Condensed Consolidating Balance Sheets
(in millions)
|
|
|||||||||||||||||||||||
Holdings
|
AAM Inc.
|
Guarantor Subsidiaries
|
Non-Guarantor Subsidiaries
|
Elims |
Consolidated
|
|||||||||||||||||||
June 30, 2010
|
||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 56.1 | $ | - | $ | 182.6 | $ | - | $ | 238.7 | ||||||||||||
Short-term investments
|
- | - | - | 2.8 | - | 2.8 | ||||||||||||||||||
Accounts receivable, net
|
- | 29.3 | 27.3 | 115.8 | - | 172.4 | ||||||||||||||||||
Inventories, net
|
- | 30.4 | 21.9 | 64.3 | - | 116.6 | ||||||||||||||||||
Other current assets
|
- | 32.1 | 3.3 | 29.8 | - | 65.2 | ||||||||||||||||||
Total current assets
|
- | 147.9 | 52.5 | 395.3 | - | 595.7 | ||||||||||||||||||
Property, plant and equipment, net
|
- | 270.8 | 91.7 | 560.1 | - | 922.6 | ||||||||||||||||||
Goodwill
|
- | - | 147.8 | - | - | 147.8 | ||||||||||||||||||
Other assets and deferred charges
|
- | 294.7 | 15.3 | 51.6 | - | 361.6 | ||||||||||||||||||
Investment in subsidiaries
|
- | 846.6 | 5.7 | - | (852.3 | ) | - | |||||||||||||||||
Total assets
|
$ | - | $ | 1,560.0 | $ | 313.0 | $ | 1,007.0 | $ | (852.3 | ) | $ | 2,027.7 | |||||||||||
Liabilities and stockholders’ equity (deficit)
|
||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||
Accounts payable
|
$ | - | $ | 82.2 | $ | 34.5 | $ | 170.9 | $ | - | $ | 287.6 | ||||||||||||
Other current liabilities
|
- | 206.1 | 4.7 | 65.6 | - | 276.4 | ||||||||||||||||||
Total current liabilities
|
- | 288.3 | 39.2 | 236.5 | - | 564.0 | ||||||||||||||||||
Intercompany payable (receivable)
|
319.9 | (389.3 | ) | 258.5 | (189.1 | ) | - | - | ||||||||||||||||
Long-term debt
|
0.4 | 969.8 | 6.2 | 36.2 | - | 1,012.6 | ||||||||||||||||||
Investment in subsidiaries obligation
|
200.2 | - | - | - | (200.2 | ) | - | |||||||||||||||||
Other long-term liabilities
|
- | 891.4 | 0.7 | 79.4 | - | 971.5 | ||||||||||||||||||
Total liabilities
|
520.5 | 1,760.2 | 304.6 | 163.0 | (200.2 | ) | 2,548.1 | |||||||||||||||||
Total AAM Stockholders’ equity (deficit)
|
(520.5 | ) | (200.2 | ) | 8.4 | 843.9 | (652.1 | ) | (520.5 | ) | ||||||||||||||
Noncontrolling interests in subsidiaries
|
- | - | - | 0.1 | - | 0.1 | ||||||||||||||||||
Total stockholders’ equity (deficit)
|
(520.5 | ) | (200.2 | ) | 8.4 | 844.0 | (652.1 | ) | (520.4 | ) | ||||||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | - | $ | 1,560.0 | $ | 313.0 | $ | 1,007.0 | $ | (852.3 | ) | $ | 2,027.7 | |||||||||||
Holdings
|
AAM Inc.
|
Guarantor Subsidiaries
|
Non-Guarantor Subsidiaries
|
Elims
|
Consolidated
|
|||||||||||||||||||
December 31, 2009
|
||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 80.6 | $ | 1.9 | $ | 95.6 | $ | - | $ | 178.1 | ||||||||||||
Short-term investments
|
- | 1.4 | - | 2.8 | - | 4.2 | ||||||||||||||||||
Accounts receivable, net
|
- | 10.9 | 27.5 | 91.3 | - | 129.7 | ||||||||||||||||||
Inventories, net
|
- | 22.8 | 16.8 | 51.0 | - | 90.6 | ||||||||||||||||||
Other current assets
|
- | 86.4 | 1.4 | 26.2 | - | 114.0 | ||||||||||||||||||
Total current assets
|
- | 202.1 | 47.6 | 266.9 | - | 516.6 | ||||||||||||||||||
Property, plant and equipment, net
|
- | 272.8 | 101.2 | 572.7 | - | 946.7 | ||||||||||||||||||
Goodwill
|
- | - | 147.8 | - | - | 147.8 | ||||||||||||||||||
Other assets and deferred charges
|
- | 304.8 | 14.5 | 56.4 | - | 375.7 | ||||||||||||||||||
Investment in subsidiaries
|
- | 725.9 | 13.4 | - | (739.3 | ) | - | |||||||||||||||||
Total assets
|
$ | - | $ | 1,505.6 | $ | 324.5 | $ | 896.0 | $ | (739.3 | ) | $ | 1,986.8 | |||||||||||
Liabilities and stockholders’ equity (deficit)
|
||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||
Accounts payable
|
$ | - | $ | 59.4 | $ | 26.0 | $ | 115.5 | $ | - | $ | 200.9 | ||||||||||||
Other current liabilities
|
- | 185.1 | 3.7 | 55.8 | - | 244.6 | ||||||||||||||||||
Total current liabilities
|
- | 244.5 | 29.7 | 171.3 | - | 445.5 | ||||||||||||||||||
Intercompany payable (receivable)
|
318.8 | (470.1 | ) | 262.7 | (111.4 | ) | - | - | ||||||||||||||||
Long-term debt
|
0.4 | 1,029.4 | 6.3 | 35.3 | - | 1,071.4 | ||||||||||||||||||
Investment in subsidiaries obligation
|
241.0 | - | - | (241.0 | ) | - | ||||||||||||||||||
Other long-term liabilities
|
- | 942.8 | 0.7 | 86.3 | - | 1,029.8 | ||||||||||||||||||
Total liabilities
|
560.2 | 1,746.6 | 299.4 | 181.5 | (241.0 | ) | 2,546.7 | |||||||||||||||||
Total AAM Stockholders’ equity (deficit)
|
(560.2 | ) | (241.0 | ) | 25.1 | 714.2 | (498.3 | ) | (560.2 | ) | ||||||||||||||
Noncontrolling interests in subsidiaries
|
- | - | - | 0.3 | - | 0.3 | ||||||||||||||||||
Total stockholders’ equity (deficit)
|
(560.2 | ) | (241.0 | ) | 25.1 | 714.5 | (498.3 | ) | (559.9 | ) | ||||||||||||||
Total liabilities and stockholders’ equity (deficit)
|
$ | - | $ | 1,505.6 | $ | 324.5 | $ | 896.0 | $ | (739.3 | ) | $ | 1,986.8 | |||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Six months ended June 30,
(in millions)
|
||||||||||||||||||||||||
2010
|
Holdings
|
AAM Inc.
|
Guarantor Subsidiaries
|
Non-Guarantor Subsidiaries
|
Elims
|
Consolidated
|
||||||||||||||||||
Net cash provided by (used in) operating activities
|
$ | - | $ | (32.4 | ) | $ | 19.5 | $ | 177.8 | $ | - | $ | 164.9 | |||||||||||
Investing activities
|
||||||||||||||||||||||||
Purchases of property, plant and equipment
|
- | (12.5 | ) | 0.2 | (24.6 | ) | - | (36.9 | ) | |||||||||||||||
Redemption of short-term investments
|
- | 1.6 | - | - | - | 1.6 | ||||||||||||||||||
Purchase buyouts of leased equipment
|
- | (7.4 | ) | - | - | - | (7.4 | ) | ||||||||||||||||
Proceeds from sale of equipment
|
- | 1.1 | 0.1 | - | - | 1.2 | ||||||||||||||||||
Net cash provided by (used in) investing activities
|
- | (17.2 | ) | 0.3 | (24.6 | ) | - | (41.5 | ) | |||||||||||||||
Financing activities
|
||||||||||||||||||||||||
Net debt activity
|
- | (59.6 | ) | (0.1 | ) | 2.2 | - | (57.5 | ) | |||||||||||||||
Intercompany activity
|
1.3 | 86.9 | (21.6 | ) | (66.6 | ) | - | - | ||||||||||||||||
Debt issuance costs
|
- | (2.2 | ) | - | - | - | (2.2 | ) | ||||||||||||||||
Purchase of treasury stock
|
(1.3 | ) | - | - | - | - | (1.3 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities
|
- | 25.1 | (21.7 | ) | (64.4 | ) | - | (61.0 | ) | |||||||||||||||
Effect of exchange rate changes on cash
|
- | - | - | (1.8 | ) | - | (1.8 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
- | (24.5 | ) | (1.9 | ) | 87.0 | - | 60.6 | ||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 80.6 | 1.9 | 95.6 | - | 178.1 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 56.1 | $ | - | $ | 182.6 | $ | - | $ | 238.7 |
2009
|
Holdings
|
AAM Inc.
|
Guarantor Subsidiaries
|
Non-Guarantor Subsidiaries
|
Elims
|
Consolidated
|
||||||||||||||||||
Net cash provided by (used in) operating activities
|
$ | - | $ | (60.3 | ) | $ | 8.0 | $ | 25.9 | $ | - | $ | (26.4 | ) | ||||||||||
Investing activities
|
||||||||||||||||||||||||
Purchases of property, plant and equipment
|
- | (32.1 | ) | (20.5 | ) | (28.4 | ) | - | (81.0 | ) | ||||||||||||||
Redemption of short-term investments
|
- | 5.9 | - | 60.1 | - | 66.0 | ||||||||||||||||||
Investment in joint venture
|
- | - | (10.2 | ) | - | (10.2 | ) | |||||||||||||||||
Proceeds from sale of equipment
|
- | 0.5 | - | - | - | 0.5 | ||||||||||||||||||
Net cash provided by (used in) investing activities
|
- | (25.7 | ) | (30.7 | ) | 31.7 | - | (24.7 | ) | |||||||||||||||
Financing activities
|
||||||||||||||||||||||||
Net debt activity
|
- | 132.5 | (0.1 | ) | (8.8 | ) | - | 123.6 | ||||||||||||||||
Intercompany activity
|
0.1 | (62.1 | ) | 22.8 | 39.2 | - | - | |||||||||||||||||
Debt issuance costs
|
- | (2.7 | ) | - | - | - | (2.7 | ) | ||||||||||||||||
Purchase of treasury stock
|
(0.1 | ) | - | - | - | (0.1 | ) | |||||||||||||||||
Net cash provided by financing activities
|
- | 67.7 | 22.7 | 30.4 | - | 120.8 | ||||||||||||||||||
Effect of exchange rate changes on cash
|
- | - | - | 3.9 | - | 3.9 | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
- | (18.3 | ) | - | 91.9 | - | 73.6 | |||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 54.6 | - | 144.2 | - | 198.8 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 36.3 | $ | - | $ | 236.1 | $ | - | $ | 272.4 | ||||||||||||
Period
|
Total Number of Shares (Or Units) Purchased
|
Average Price Paid per Share (or Unit)
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
|
||||||||||||
April 1, 2010 – April 30, 2010
|
898 | $ | 10.58 | - | - | |||||||||||
May 1, 2010 – May 31, 2010
|
- | - | - | - | ||||||||||||
June 1, 2010 – June 30, 2010
|
10,044 | $ | 8.60 | - | - | |||||||||||
Total
|
10,942 | $ | 8.76 | - | - |
|
Exhibits required by Item 601 of Regulation S-K are listed in the Exhibit Index.
|
Number
|
Description of Exhibit
|
|
*31.1 |
Certification of Richard E. Dauch, Co-Founder, Chairman of the Board & Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act
|
|
*31.2 |
Certification of Michael K. Simonte, Executive Vice President – Finance & Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act
|
|
*32 |
Certifications of Richard E. Dauch, Co-Founder, Chairman of the Board & Chief Executive Officer and Michael K. Simonte, Executive Vice President – Finance & Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|