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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended June 30, 2014
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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
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For the transition period from _____________ to _____________
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Delaware
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38-3161171
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(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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reduced purchases of our products by General Motors Company (GM), Chrysler Group LLC (Chrysler) or other customers;
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•
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reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM and Chrysler);
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•
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our ability or our customers' and suppliers' ability to successfully launch new product programs on a timely basis;
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•
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our ability to realize the expected revenues from our new and incremental business backlog;
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•
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our ability to develop and produce new products that reflect market demand;
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•
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lower-than-anticipated market acceptance of new or existing products;
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•
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our ability to attract new customers and programs for new products;
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•
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our ability to respond to changes in technology, increased competition or pricing pressures;
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our ability to achieve the level of cost reductions required to sustain global cost competitiveness;
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supply shortages or price increases in raw materials, utilities or other operating supplies for us or our customers as a result of natural disasters or otherwise;
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•
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global economic conditions, including the impact of the continued market weakness in the Euro-zone;
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•
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risks inherent in our international operations (including adverse changes in political stability, taxes and other law changes, potential disruptions of production and supply, and currency rate fluctuations);
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•
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liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
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•
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price volatility in, or reduced availability of, fuel;
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•
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our ability to successfully implement upgrades to our enterprise resource planning systems;
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•
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our ability to maintain satisfactory labor relations and avoid work stoppages;
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•
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our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid work stoppages;
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•
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our ability to attract and retain key associates;
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•
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availability of financing for working capital, capital expenditures, research and development (R&D) or other general corporate purposes, including our ability to comply with financial covenants;
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•
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our customers' and suppliers' availability of financing for working capital, capital expenditures, R&D or other general corporate purposes;
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•
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changes in liabilities arising from pension and other postretirement benefit obligations;
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•
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risks of noncompliance with environmental laws and regulations or risks of environmental issues that could result in unforeseen costs at our facilities;
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•
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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);
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•
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our ability to consummate and integrate acquisitions and joint ventures;
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•
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our ability or our customers' and suppliers' ability to comply with the Dodd-Frank Act and other regulatory requirements and the potential costs of such compliance; and
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•
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other unanticipated events and conditions that may hinder our ability to compete.
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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||||||||||||
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2014
|
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2013
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2014
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2013
|
||||||||
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(in millions, except per share data)
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||||||||||||||
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Net sales
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$
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946.9
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$
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799.6
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$
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1,805.7
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$
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1,555.2
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||||||||
Cost of goods sold
|
797.9
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677.4
|
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1,534.8
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1,328.7
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||||||||
Gross profit
|
149.0
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|
122.2
|
|
|
270.9
|
|
|
226.5
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||||
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|
||||||||
Selling, general and administrative expenses
|
61.5
|
|
|
60.5
|
|
|
118.6
|
|
|
120.1
|
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||||
|
|
|
|
|
|
|
|
||||||||
Operating income
|
87.5
|
|
|
61.7
|
|
|
152.3
|
|
|
106.4
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||||
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|
|
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|
|
|
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||||||||
Interest expense
|
(25.1
|
)
|
|
(28.8
|
)
|
|
(50.1
|
)
|
|
(57.9
|
)
|
||||
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|
|
|
|
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||||||||
Investment income
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0.3
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|
0.2
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0.6
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0.3
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||||
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||||||||
Other income (expense)
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||||||||
Debt refinancing and redemption costs
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—
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0.1
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—
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(11.2
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)
|
||||
Other, net
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0.8
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(2.0
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)
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1.3
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(1.5
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)
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||||||||
Income before income taxes
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63.5
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31.2
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104.1
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36.1
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||||||||
Income tax expense
|
11.3
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5.4
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|
18.3
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3.0
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||||
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||||||||
Net income
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52.2
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25.8
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85.8
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33.1
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Basic earnings per share
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$
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0.67
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$
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0.34
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$
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1.11
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$
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0.43
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Diluted earnings per share
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$
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0.67
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$
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0.34
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$
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1.11
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$
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0.43
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Three Months Ended
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Six Months Ended
|
||||||||||||
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June 30,
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June 30,
|
||||||||||||
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2014
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2013
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2014
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2013
|
||||||||
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(in millions)
|
||||||||||||||
Net income
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$
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52.2
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$
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25.8
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$
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85.8
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$
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33.1
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||||||||
Other comprehensive income (loss), net of tax
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||||||||
Defined benefit plans, net of tax
(a)
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0.6
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1.7
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5.7
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0.6
|
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||||
Foreign currency translation adjustments
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3.6
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(21.7
|
)
|
|
11.4
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(16.8
|
)
|
||||
Change in derivatives
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0.5
|
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|
(2.1
|
)
|
|
1.4
|
|
|
(1.6
|
)
|
||||
Other comprehensive income (loss)
|
4.7
|
|
|
(22.1
|
)
|
|
18.5
|
|
|
(17.8
|
)
|
||||
|
|
|
|
|
|
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|
||||||||
Comprehensive income
|
$
|
56.9
|
|
|
$
|
3.7
|
|
|
$
|
104.3
|
|
|
$
|
15.3
|
|
|
|
|
|
|
|
|
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(a)
|
Amounts are net of tax of $(0.2) million and $(2.9) million for the three and six months ended June 30, 2014, respectively, and $(0.8) million and $(0.1) million for the three and six months ended June 30, 2013, respectively.
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|
|
June 30, 2014
|
|
December 31, 2013
|
||||
|
|
(Unaudited)
|
|
|
||||
Assets
|
|
(in millions)
|
||||||
Current assets
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
128.9
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$
|
154.0
|
|
Accounts receivable, net
|
|
648.2
|
|
|
458.5
|
|
||
Inventories, net
|
|
255.7
|
|
|
261.8
|
|
||
Prepaid expenses and other current assets
|
|
114.0
|
|
|
123.5
|
|
||
Total current assets
|
|
1,146.8
|
|
|
997.8
|
|
||
|
|
|
|
|
|
|
||
Property, plant and equipment, net
|
|
1,077.0
|
|
|
1,058.5
|
|
||
Deferred income taxes
|
|
333.0
|
|
|
341.8
|
|
||
Goodwill
|
|
156.2
|
|
|
156.4
|
|
||
GM postretirement cost sharing asset
|
|
234.9
|
|
|
242.0
|
|
||
Other assets and deferred charges
|
|
253.5
|
|
|
232.5
|
|
||
Total assets
|
|
$
|
3,201.4
|
|
|
$
|
3,029.0
|
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
509.7
|
|
|
$
|
445.8
|
|
Accrued compensation and benefits
|
|
92.3
|
|
|
110.1
|
|
||
Deferred revenue
|
|
22.5
|
|
|
17.0
|
|
||
Accrued expenses and other current liabilities
|
|
97.0
|
|
|
94.2
|
|
||
Total current liabilities
|
|
721.5
|
|
|
667.1
|
|
||
|
|
|
|
|
|
|
||
Long-term debt
|
|
1,545.7
|
|
|
1,559.1
|
|
||
Deferred revenue
|
|
106.4
|
|
|
76.4
|
|
||
Postretirement benefits and other long-term liabilities
|
|
684.4
|
|
|
692.8
|
|
||
Total liabilities
|
|
3,058.0
|
|
|
2,995.4
|
|
||
|
|
|
|
|
|
|
||
Stockholders' equity
|
|
|
|
|
|
|
||
Common stock, par value $0.01 per share
|
|
0.8
|
|
|
0.8
|
|
||
Paid-in capital
|
|
618.6
|
|
|
612.8
|
|
||
Accumulated deficit
|
|
(95.5
|
)
|
|
(181.3
|
)
|
||
Treasury stock at cost, 6.1 million shares as of June 30, 2014 and 6.0 million shares as of December 31, 2013
|
|
(182.8
|
)
|
|
(182.5
|
)
|
||
Accumulated other comprehensive income (loss), net of tax
|
|
|
|
|
||||
Defined benefit plans
|
|
(192.2
|
)
|
|
(197.9
|
)
|
||
Foreign currency translation adjustments
|
|
(7.2
|
)
|
|
(18.6
|
)
|
||
Unrecognized gain on derivatives
|
|
1.7
|
|
|
0.3
|
|
||
Total stockholders’ equity
|
|
143.4
|
|
|
33.6
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
3,201.4
|
|
|
$
|
3,029.0
|
|
|
|
Six Months Ended
|
||||||
|
|
June 30,
|
||||||
|
|
2014
|
|
2013
|
||||
|
|
(in millions)
|
||||||
Operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
85.8
|
|
|
$
|
33.1
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
||||
Depreciation and amortization
|
|
95.0
|
|
|
83.7
|
|
||
Deferred income taxes
|
|
4.9
|
|
|
(1.5
|
)
|
||
Stock-based compensation
|
|
4.6
|
|
|
3.2
|
|
||
Pensions and other postretirement benefits, net of contributions
|
|
1.4
|
|
|
5.9
|
|
||
Gain on disposal of property, plant and equipment, net
|
|
(4.0
|
)
|
|
(3.5
|
)
|
||
Debt refinancing and redemption costs
|
|
—
|
|
|
2.5
|
|
||
Changes in operating assets and liabilities
|
|
|
|
|
||||
Accounts receivable
|
|
(187.3
|
)
|
|
(99.1
|
)
|
||
Inventories
|
|
8.4
|
|
|
(12.3
|
)
|
||
Accounts payable and accrued expenses
|
|
53.1
|
|
|
51.1
|
|
||
Deferred revenue
|
|
35.6
|
|
|
(3.8
|
)
|
||
Other assets and liabilities
|
|
(15.1
|
)
|
|
(26.1
|
)
|
||
Net cash provided by operating activities
|
|
82.4
|
|
|
33.2
|
|
||
|
|
|
|
|
|
|
||
Investing activities
|
|
|
|
|
|
|
||
Purchases of property, plant and equipment
|
|
(103.7
|
)
|
|
(121.5
|
)
|
||
Proceeds from sale of property, plant and equipment
|
|
8.3
|
|
|
4.9
|
|
||
Proceeds from sale-leaseback of equipment
|
|
—
|
|
|
16.0
|
|
||
Net cash used in investing activities
|
|
(95.4
|
)
|
|
(100.6
|
)
|
||
|
|
|
|
|
|
|
||
Financing activities
|
|
|
|
|
|
|
||
Net short-term repayments under credit facilities
|
|
(2.0
|
)
|
|
(12.0
|
)
|
||
Payments of long-term debt and capital lease obligations
|
|
(14.2
|
)
|
|
(307.3
|
)
|
||
Proceeds from issuance of long-term debt
|
|
2.8
|
|
|
410.0
|
|
||
Debt issuance costs
|
|
(0.3
|
)
|
|
(6.6
|
)
|
||
Purchase of treasury stock
|
|
(0.3
|
)
|
|
(0.1
|
)
|
||
Employee stock option exercises
|
|
1.2
|
|
|
0.8
|
|
||
Net cash provided by (used in) financing activities
|
|
(12.8
|
)
|
|
84.8
|
|
||
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash
|
|
0.7
|
|
|
(0.9
|
)
|
||
|
|
|
|
|
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(25.1
|
)
|
|
16.5
|
|
||
|
|
|
|
|
|
|
||
Cash and cash equivalents at beginning of period
|
|
154.0
|
|
|
62.4
|
|
||
|
|
|
|
|
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
128.9
|
|
|
$
|
78.9
|
|
|
|
|
|
|
|
|
||
Supplemental cash flow information
|
|
|
|
|
|
|
||
Interest paid
|
|
$
|
41.9
|
|
|
$
|
55.9
|
|
Income taxes paid, net of refunds
|
|
$
|
5.7
|
|
|
$
|
8.2
|
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
|
|
(in millions)
|
||||||
|
|
|
|
|
||||
Raw materials and work-in-progress
|
|
$
|
252.0
|
|
|
$
|
263.4
|
|
Finished goods
|
|
31.5
|
|
|
25.7
|
|
||
Gross inventories
|
|
283.5
|
|
|
289.1
|
|
||
Inventory valuation reserves
|
|
(27.8
|
)
|
|
(27.3
|
)
|
||
Inventories, net
|
|
$
|
255.7
|
|
|
$
|
261.8
|
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
|
|
(in millions)
|
||||||
|
|
|
|
|
||||
Revolving Credit Facility
|
|
$
|
—
|
|
|
$
|
—
|
|
Term Facility
|
|
146.3
|
|
|
150.0
|
|
||
7.75% Notes
|
|
200.0
|
|
|
200.0
|
|
||
6.625% Notes
|
|
550.0
|
|
|
550.0
|
|
||
6.25% Notes
|
|
400.0
|
|
|
400.0
|
|
||
5.125% Notes
|
|
200.0
|
|
|
200.0
|
|
||
Foreign credit facilities
|
|
44.3
|
|
|
53.8
|
|
||
Capital lease obligations
|
|
5.1
|
|
|
5.3
|
|
||
Long-term debt
|
|
$
|
1,545.7
|
|
|
$
|
1,559.1
|
|
•
|
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, 2014
|
|
December 31, 2013
|
|
|
||||||||||||
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
|
Input
|
||||||||
|
|
(in millions)
|
|
(in millions)
|
|
|
||||||||||||
Balance Sheet Classification
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
|
$
|
25.8
|
|
|
$
|
25.8
|
|
|
$
|
6.1
|
|
|
$
|
6.1
|
|
|
Level 1
|
Prepaid expenses and other current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Currency forward contracts
|
|
1.6
|
|
|
1.6
|
|
|
0.7
|
|
|
0.7
|
|
|
Level 2
|
||||
Other assets and deferred charges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Currency forward contracts
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
Other accrued expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||
Currency forward contracts
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|
Level 2
|
|
|
June 30, 2014
|
|
December 31, 2013
|
|
|
||||||||||||
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
|
Input
|
||||||||
|
|
(in millions)
|
|
(in millions)
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revolving Credit Facility
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 2
|
Term Facility
|
|
146.3
|
|
|
144.8
|
|
|
150.0
|
|
|
147.8
|
|
|
Level 2
|
||||
7.75% Notes
|
|
200.0
|
|
|
229.5
|
|
|
200.0
|
|
|
227.5
|
|
|
Level 2
|
||||
6.625% Notes
|
|
550.0
|
|
|
602.3
|
|
|
550.0
|
|
|
578.9
|
|
|
Level 2
|
||||
6.25% Notes
|
|
400.0
|
|
|
429.0
|
|
|
400.0
|
|
|
423.0
|
|
|
Level 2
|
||||
5.125% Notes
|
|
200.0
|
|
|
210.0
|
|
|
200.0
|
|
|
206.0
|
|
|
Level 2
|
|
|
Location of
|
|
Gain Reclassified
|
|
Gain Expected to be
|
||||||||||||||||
|
|
Gain
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Reclassified
|
||||||||||||||
|
|
Reclassified into
|
|
June 30,
|
|
June 30,
|
|
During the
|
||||||||||||||
|
|
Net Income
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Next 12 Months
|
||||||||||
|
|
|
|
(in millions)
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency forward contracts
|
|
Cost of Goods Sold
|
|
$
|
0.2
|
|
|
$
|
0.9
|
|
|
$
|
0.2
|
|
|
$
|
2.1
|
|
|
$
|
1.6
|
|
|
|
Pension Benefits
|
||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
0.9
|
|
|
$
|
0.9
|
|
|
$
|
1.8
|
|
|
$
|
1.8
|
|
Interest cost
|
|
9.0
|
|
|
8.5
|
|
|
18.0
|
|
|
17.0
|
|
||||
Expected asset return
|
|
(12.1
|
)
|
|
(11.5
|
)
|
|
(24.2
|
)
|
|
(23.0
|
)
|
||||
Amortized loss
|
|
1.3
|
|
|
2.4
|
|
|
2.6
|
|
|
4.8
|
|
||||
Amortized prior service cost
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.6
|
|
||||
Net periodic benefit cost (credit)
|
|
$
|
(0.9
|
)
|
|
$
|
0.6
|
|
|
$
|
(1.8
|
)
|
|
$
|
1.2
|
|
|
|
|
||||||||||||||
|
|
Other Postretirement Benefits
|
||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service cost
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
Interest cost
|
|
3.8
|
|
|
3.3
|
|
|
7.6
|
|
|
6.6
|
|
||||
Amortized loss
|
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
|
0.4
|
|
||||
Amortized prior service credit
|
|
(0.7
|
)
|
|
(0.5
|
)
|
|
(1.4
|
)
|
|
(0.9
|
)
|
||||
Net periodic benefit cost
|
|
$
|
3.4
|
|
|
$
|
3.1
|
|
|
$
|
6.8
|
|
|
$
|
6.3
|
|
7.
|
PRODUCT WARRANTIES
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
18.0
|
|
|
$
|
22.9
|
|
|
$
|
14.3
|
|
|
$
|
29.1
|
|
Accruals
|
|
2.2
|
|
|
2.5
|
|
|
6.4
|
|
|
5.7
|
|
||||
Settlements
|
|
(0.2
|
)
|
|
(1.3
|
)
|
|
(1.0
|
)
|
|
(10.5
|
)
|
||||
Adjustment to prior period accruals, net
|
|
(1.8
|
)
|
|
(0.7
|
)
|
|
(1.6
|
)
|
|
(0.9
|
)
|
||||
Foreign currency translation
|
|
—
|
|
|
(0.2
|
)
|
|
0.1
|
|
|
(0.2
|
)
|
||||
Ending balance
|
|
$
|
18.2
|
|
|
$
|
23.2
|
|
|
$
|
18.2
|
|
|
$
|
23.2
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(in millions, except per share data)
|
||||||||||||||
Numerator
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
52.2
|
|
|
$
|
25.8
|
|
|
$
|
85.8
|
|
|
$
|
33.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic shares outstanding -
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding
|
|
77.4
|
|
|
76.8
|
|
|
77.2
|
|
|
76.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of dilutive securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive stock-based compensation
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted shares outstanding -
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted weighted-average shares after assumed conversions
|
|
77.5
|
|
|
76.9
|
|
|
77.3
|
|
|
76.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic EPS
|
|
$
|
0.67
|
|
|
$
|
0.34
|
|
|
$
|
1.11
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted EPS
|
|
$
|
0.67
|
|
|
$
|
0.34
|
|
|
$
|
1.11
|
|
|
$
|
0.43
|
|
|
Defined Benefit Plans
|
|
Foreign Currency Translation Adjustments
|
|
Unrecognized Gain on Derivatives
|
|
Total
|
||||||||
Balance at March 31, 2014
|
$
|
(192.8
|
)
|
|
$
|
(10.8
|
)
|
|
$
|
1.2
|
|
|
$
|
(202.4
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
3.6
|
|
|
0.7
|
|
|
4.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
0.6
|
|
(a)(b)
|
—
|
|
|
(0.2
|
)
|
(c)
|
0.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
0.6
|
|
|
3.6
|
|
|
0.5
|
|
|
4.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at June 30, 2014
|
$
|
(192.2
|
)
|
|
$
|
(7.2
|
)
|
|
$
|
1.7
|
|
|
$
|
(197.7
|
)
|
|
Defined Benefit Plans
|
|
Foreign Currency Translation Adjustments
|
|
Unrecognized Gain on Derivatives
|
|
Total
|
||||||||
Balance at March 31, 2013
|
$
|
(275.6
|
)
|
|
$
|
12.5
|
|
|
$
|
2.8
|
|
|
$
|
(260.3
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications
|
—
|
|
|
(21.7
|
)
|
|
(1.2
|
)
|
|
(22.9
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
1.7
|
|
(a)(b)
|
—
|
|
|
(0.9
|
)
|
(c)
|
0.8
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
1.7
|
|
|
(21.7
|
)
|
|
(2.1
|
)
|
|
(22.1
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at June 30, 2013
|
$
|
(273.9
|
)
|
|
$
|
(9.2
|
)
|
|
$
|
0.7
|
|
|
$
|
(282.4
|
)
|
(a)
|
The amounts are net of tax of $(0.2) million for the amounts reclassified from AOCI for the three months ended June 30, 2014, and $(0.8) million for the three months ended June 30, 2013.
|
|
|
(b)
|
The net amount reclassified from AOCI included $0.8 million in cost of goods sold (COGS) and $(0.2) million in selling, general & administrative expenses (SG&A) for the three months ended June 30, 2014 and $1.2 million in COGS and $0.5 million in SG&A for the three months ended June 30, 2013.
|
|
|
(c)
|
The amounts reclassified from AOCI are included in COGS.
|
|
|
|
Defined Benefit Plans
|
|
Foreign Currency Translation Adjustments
|
|
Unrecognized Gain on Derivatives
|
|
Total
|
||||||||
Balance at December 31, 2013
|
$
|
(197.9
|
)
|
|
$
|
(18.6
|
)
|
|
$
|
0.3
|
|
|
$
|
(216.2
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications
|
4.5
|
|
(a)
|
11.4
|
|
|
1.6
|
|
|
17.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
1.2
|
|
(a)(b)
|
—
|
|
|
(0.2
|
)
|
(c)
|
1.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
5.7
|
|
|
11.4
|
|
|
1.4
|
|
|
18.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at June 30, 2014
|
$
|
(192.2
|
)
|
|
$
|
(7.2
|
)
|
|
$
|
1.7
|
|
|
$
|
(197.7
|
)
|
|
Defined Benefit Plans
|
|
Foreign Currency Translation Adjustments
|
|
Unrecognized Gain on Derivatives
|
|
Total
|
||||||||
Balance at December 31, 2012
|
$
|
(274.5
|
)
|
|
$
|
7.6
|
|
|
$
|
2.3
|
|
|
$
|
(264.6
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications
|
(2.7
|
)
|
(a)
|
(16.8
|
)
|
|
0.5
|
|
|
(19.0
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
3.3
|
|
(a)(b)
|
—
|
|
|
(2.1
|
)
|
(c)
|
1.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
0.6
|
|
|
(16.8
|
)
|
|
(1.6
|
)
|
|
(17.8
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at June 30, 2013
|
$
|
(273.9
|
)
|
|
$
|
(9.2
|
)
|
|
$
|
0.7
|
|
|
$
|
(282.4
|
)
|
(a)
|
The amounts are net of tax of $(2.4) million and $(0.5) million for other comprehensive income before reclassifications and the amounts reclassified from AOCI, respectively, for the six months ended June 30, 2014, and $1.5 million and $(1.6) million, respectively, for the six months ended June 30, 2013.
|
|
|
(b)
|
The net amount reclassified from AOCI included $1.7 million in COGS and $(0.5) million in SG&A for the six months ended June 30, 2014 and $2.3 million in COGS and $1.0 million in SG&A for the six months ended June 30, 2013.
|
|
|
(c)
|
The amounts reclassified from AOCI are included in COGS.
|
|
|
Condensed Consolidating Statements of Income
|
|
|
|
|
|
|
|
|
||||||||||||||||
Three Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External
|
|
$
|
—
|
|
|
$
|
298.0
|
|
|
$
|
59.0
|
|
|
$
|
589.9
|
|
|
$
|
—
|
|
|
$
|
946.9
|
|
Intercompany
|
|
—
|
|
|
3.0
|
|
|
62.5
|
|
|
6.1
|
|
|
(71.6
|
)
|
|
—
|
|
||||||
Total net sales
|
|
—
|
|
|
301.0
|
|
|
121.5
|
|
|
596.0
|
|
|
(71.6
|
)
|
|
946.9
|
|
||||||
Cost of goods sold
|
|
—
|
|
|
288.5
|
|
|
102.9
|
|
|
478.1
|
|
|
(71.6
|
)
|
|
797.9
|
|
||||||
Gross profit
|
|
—
|
|
|
12.5
|
|
|
18.6
|
|
|
117.9
|
|
|
—
|
|
|
149.0
|
|
||||||
Selling, general and administrative expenses
|
|
—
|
|
|
52.0
|
|
|
0.1
|
|
|
9.4
|
|
|
—
|
|
|
61.5
|
|
||||||
Operating income (loss)
|
|
—
|
|
|
(39.5
|
)
|
|
18.5
|
|
|
108.5
|
|
|
—
|
|
|
87.5
|
|
||||||
Non-operating income (expense), net
|
|
—
|
|
|
(25.9
|
)
|
|
2.4
|
|
|
(0.5
|
)
|
|
—
|
|
|
(24.0
|
)
|
||||||
Income (loss) before income taxes
|
|
—
|
|
|
(65.4
|
)
|
|
20.9
|
|
|
108.0
|
|
|
—
|
|
|
63.5
|
|
||||||
Income tax expense
|
|
—
|
|
|
6.0
|
|
|
0.1
|
|
|
5.2
|
|
|
|
|
|
11.3
|
|
||||||
Earnings (loss) from equity in subsidiaries
|
|
52.2
|
|
|
68.0
|
|
|
(7.0
|
)
|
|
—
|
|
|
(113.2
|
)
|
|
—
|
|
||||||
Net income (loss) before royalties and dividends
|
|
52.2
|
|
|
(3.4
|
)
|
|
13.8
|
|
|
102.8
|
|
|
(113.2
|
)
|
|
52.2
|
|
||||||
Royalties and dividends
|
|
—
|
|
|
55.6
|
|
|
—
|
|
|
(55.6
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income after royalties and dividends
|
|
52.2
|
|
|
52.2
|
|
|
13.8
|
|
|
47.2
|
|
|
(113.2
|
)
|
|
52.2
|
|
||||||
Other comprehensive income (loss)
|
|
4.7
|
|
|
4.7
|
|
|
3.3
|
|
|
2.6
|
|
|
(10.6
|
)
|
|
4.7
|
|
||||||
Comprehensive income
|
|
$
|
56.9
|
|
|
$
|
56.9
|
|
|
$
|
17.1
|
|
|
$
|
49.8
|
|
|
$
|
(123.8
|
)
|
|
$
|
56.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
External
|
|
$
|
—
|
|
|
$
|
211.3
|
|
|
$
|
58.8
|
|
|
$
|
529.5
|
|
|
$
|
—
|
|
|
$
|
799.6
|
|
Intercompany
|
|
—
|
|
|
4.6
|
|
|
56.3
|
|
|
2.4
|
|
|
(63.3
|
)
|
|
—
|
|
||||||
Total net sales
|
|
—
|
|
|
215.9
|
|
|
115.1
|
|
|
531.9
|
|
|
(63.3
|
)
|
|
799.6
|
|
||||||
Cost of goods sold
|
|
—
|
|
|
197.7
|
|
|
98.9
|
|
|
444.1
|
|
|
(63.3
|
)
|
|
677.4
|
|
||||||
Gross profit
|
|
—
|
|
|
18.2
|
|
|
16.2
|
|
|
87.8
|
|
|
—
|
|
|
122.2
|
|
||||||
Selling, general and administrative expenses
|
|
—
|
|
|
52.3
|
|
|
—
|
|
|
8.2
|
|
|
—
|
|
|
60.5
|
|
||||||
Operating income (loss)
|
|
—
|
|
|
(34.1
|
)
|
|
16.2
|
|
|
79.6
|
|
|
—
|
|
|
61.7
|
|
||||||
Non-operating income (expense), net
|
|
—
|
|
|
(29.3
|
)
|
|
2.7
|
|
|
(3.9
|
)
|
|
—
|
|
|
(30.5
|
)
|
||||||
Income (loss) before income taxes
|
|
—
|
|
|
(63.4
|
)
|
|
18.9
|
|
|
75.7
|
|
|
—
|
|
|
31.2
|
|
||||||
Income tax expense (benefit)
|
|
—
|
|
|
(12.3
|
)
|
|
—
|
|
|
17.7
|
|
|
—
|
|
|
5.4
|
|
||||||
Earnings (loss) from equity in subsidiaries
|
|
25.8
|
|
|
24.5
|
|
|
(9.7
|
)
|
|
—
|
|
|
(40.6
|
)
|
|
—
|
|
||||||
Net income (loss) before royalties and dividends
|
|
25.8
|
|
|
(26.6
|
)
|
|
9.2
|
|
|
58.0
|
|
|
(40.6
|
)
|
|
25.8
|
|
||||||
Royalties and dividends
|
|
—
|
|
|
52.4
|
|
|
—
|
|
|
(52.4
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income after royalties and dividends
|
|
25.8
|
|
|
25.8
|
|
|
9.2
|
|
|
5.6
|
|
|
(40.6
|
)
|
|
25.8
|
|
||||||
Other comprehensive loss
|
|
(22.1
|
)
|
|
(22.1
|
)
|
|
(21.3
|
)
|
|
(24.4
|
)
|
|
67.8
|
|
|
(22.1
|
)
|
||||||
Comprehensive income (loss)
|
|
$
|
3.7
|
|
|
$
|
3.7
|
|
|
$
|
(12.1
|
)
|
|
$
|
(18.8
|
)
|
|
$
|
27.2
|
|
|
$
|
3.7
|
|
Condensed Consolidating Statements of Income
|
|
|
|
|
|
|
|
|
||||||||||||||||
Six Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External
|
|
$
|
—
|
|
|
$
|
525.9
|
|
|
$
|
117.0
|
|
|
$
|
1,162.8
|
|
|
$
|
—
|
|
|
$
|
1,805.7
|
|
Intercompany
|
|
—
|
|
|
5.8
|
|
|
120.7
|
|
|
12.0
|
|
|
(138.5
|
)
|
|
—
|
|
||||||
Total net sales
|
|
—
|
|
|
531.7
|
|
|
237.7
|
|
|
1,174.8
|
|
|
(138.5
|
)
|
|
1,805.7
|
|
||||||
Cost of goods sold
|
|
—
|
|
|
520.4
|
|
|
202.5
|
|
|
950.4
|
|
|
(138.5
|
)
|
|
1,534.8
|
|
||||||
Gross profit
|
|
—
|
|
|
11.3
|
|
|
35.2
|
|
|
224.4
|
|
|
—
|
|
|
270.9
|
|
||||||
Selling, general and administrative expenses
|
|
—
|
|
|
100.6
|
|
|
0.1
|
|
|
17.9
|
|
|
—
|
|
|
118.6
|
|
||||||
Operating income (loss)
|
|
—
|
|
|
(89.3
|
)
|
|
35.1
|
|
|
206.5
|
|
|
—
|
|
|
152.3
|
|
||||||
Non-operating income (expense), net
|
|
—
|
|
|
(51.7
|
)
|
|
5.1
|
|
|
(1.6
|
)
|
|
—
|
|
|
(48.2
|
)
|
||||||
Income (loss) before income taxes
|
|
—
|
|
|
(141.0
|
)
|
|
40.2
|
|
|
204.9
|
|
|
—
|
|
|
104.1
|
|
||||||
Income tax expense
|
|
—
|
|
|
6.5
|
|
|
0.2
|
|
|
11.6
|
|
|
—
|
|
|
18.3
|
|
||||||
Earnings (loss) from equity in subsidiaries
|
|
85.8
|
|
|
122.5
|
|
|
(16.2
|
)
|
|
—
|
|
|
(192.1
|
)
|
|
—
|
|
||||||
Net income (loss) before royalties and dividends
|
|
85.8
|
|
|
(25.0
|
)
|
|
23.8
|
|
|
193.3
|
|
|
(192.1
|
)
|
|
85.8
|
|
||||||
Royalties and dividends
|
|
—
|
|
|
110.8
|
|
|
—
|
|
|
(110.8
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income after royalties and dividends
|
|
85.8
|
|
|
85.8
|
|
|
23.8
|
|
|
82.5
|
|
|
(192.1
|
)
|
|
85.8
|
|
||||||
Other comprehensive income
|
|
18.5
|
|
|
18.5
|
|
|
11.2
|
|
|
11.5
|
|
|
(41.2
|
)
|
|
18.5
|
|
||||||
Comprehensive income
|
|
$
|
104.3
|
|
|
$
|
104.3
|
|
|
$
|
35.0
|
|
|
$
|
94.0
|
|
|
$
|
(233.3
|
)
|
|
$
|
104.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External
|
|
$
|
—
|
|
|
$
|
411.6
|
|
|
$
|
112.7
|
|
|
$
|
1,030.9
|
|
|
$
|
—
|
|
|
$
|
1,555.2
|
|
Intercompany
|
|
—
|
|
|
8.0
|
|
|
113.9
|
|
|
7.3
|
|
|
(129.2
|
)
|
|
—
|
|
||||||
Total net sales
|
|
—
|
|
|
419.6
|
|
|
226.6
|
|
|
1,038.2
|
|
|
(129.2
|
)
|
|
1,555.2
|
|
||||||
Cost of goods sold
|
|
—
|
|
|
396.2
|
|
|
196.1
|
|
|
865.6
|
|
|
(129.2
|
)
|
|
1,328.7
|
|
||||||
Gross profit
|
|
—
|
|
|
23.4
|
|
|
30.5
|
|
|
172.6
|
|
|
—
|
|
|
226.5
|
|
||||||
Selling, general and administrative expenses
|
|
—
|
|
|
101.2
|
|
|
—
|
|
|
18.9
|
|
|
—
|
|
|
120.1
|
|
||||||
Operating income (loss)
|
|
—
|
|
|
(77.8
|
)
|
|
30.5
|
|
|
153.7
|
|
|
—
|
|
|
106.4
|
|
||||||
Non-operating income (expense), net
|
|
—
|
|
|
(70.8
|
)
|
|
5.4
|
|
|
(4.9
|
)
|
|
—
|
|
|
(70.3
|
)
|
||||||
Income (loss) before income taxes
|
|
—
|
|
|
(148.6
|
)
|
|
35.9
|
|
|
148.8
|
|
|
—
|
|
|
36.1
|
|
||||||
Income tax expense (benefit)
|
|
—
|
|
|
(13.9
|
)
|
|
—
|
|
|
16.9
|
|
|
—
|
|
|
3.0
|
|
||||||
Earnings (loss) from equity in subsidiaries
|
|
33.1
|
|
|
64.9
|
|
|
(12.9
|
)
|
|
—
|
|
|
(85.1
|
)
|
|
—
|
|
||||||
Net income (loss) before royalties and dividends
|
|
33.1
|
|
|
(69.8
|
)
|
|
23.0
|
|
|
131.9
|
|
|
(85.1
|
)
|
|
33.1
|
|
||||||
Royalties and dividends
|
|
—
|
|
|
102.9
|
|
|
—
|
|
|
(102.9
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income after royalties and dividends
|
|
33.1
|
|
|
33.1
|
|
|
23.0
|
|
|
29.0
|
|
|
(85.1
|
)
|
|
33.1
|
|
||||||
Other comprehensive loss
|
|
(17.8
|
)
|
|
(17.8
|
)
|
|
(13.6
|
)
|
|
(16.1
|
)
|
|
47.5
|
|
|
(17.8
|
)
|
||||||
Comprehensive income
|
|
$
|
15.3
|
|
|
$
|
15.3
|
|
|
$
|
9.4
|
|
|
$
|
12.9
|
|
|
$
|
(37.6
|
)
|
|
$
|
15.3
|
|
Condensed Consolidating Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
22.0
|
|
|
$
|
—
|
|
|
$
|
106.9
|
|
|
$
|
—
|
|
|
$
|
128.9
|
|
Accounts receivable, net
|
|
—
|
|
|
175.8
|
|
|
30.7
|
|
|
441.7
|
|
|
—
|
|
|
648.2
|
|
||||||
Inventories, net
|
|
—
|
|
|
63.7
|
|
|
32.7
|
|
|
159.3
|
|
|
—
|
|
|
255.7
|
|
||||||
Other current assets
|
|
—
|
|
|
40.3
|
|
|
2.8
|
|
|
70.9
|
|
|
—
|
|
|
114.0
|
|
||||||
Total current assets
|
|
—
|
|
|
301.8
|
|
|
66.2
|
|
|
778.8
|
|
|
—
|
|
|
1,146.8
|
|
||||||
Property, plant and equipment, net
|
|
—
|
|
|
227.3
|
|
|
82.7
|
|
|
767.0
|
|
|
—
|
|
|
1,077.0
|
|
||||||
Goodwill
|
|
—
|
|
|
—
|
|
|
147.9
|
|
|
8.3
|
|
|
—
|
|
|
156.2
|
|
||||||
Other assets and deferred charges
|
|
—
|
|
|
662.5
|
|
|
45.5
|
|
|
113.4
|
|
|
—
|
|
|
821.4
|
|
||||||
Investment in subsidiaries
|
|
466.8
|
|
|
1,362.7
|
|
|
—
|
|
|
—
|
|
|
(1,829.5
|
)
|
|
—
|
|
||||||
Total assets
|
|
$
|
466.8
|
|
|
$
|
2,554.3
|
|
|
$
|
342.3
|
|
|
$
|
1,667.5
|
|
|
$
|
(1,829.5
|
)
|
|
$
|
3,201.4
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
—
|
|
|
$
|
148.7
|
|
|
$
|
48.3
|
|
|
$
|
312.7
|
|
|
$
|
—
|
|
|
$
|
509.7
|
|
Other current liabilities
|
|
—
|
|
|
110.9
|
|
|
5.1
|
|
|
95.8
|
|
|
—
|
|
|
211.8
|
|
||||||
Total current liabilities
|
|
—
|
|
|
259.6
|
|
|
53.4
|
|
|
408.5
|
|
|
—
|
|
|
721.5
|
|
||||||
Intercompany payable (receivable)
|
|
323.4
|
|
|
(341.5
|
)
|
|
(244.7
|
)
|
|
262.8
|
|
|
—
|
|
|
—
|
|
||||||
Long-term debt
|
|
—
|
|
|
1,496.3
|
|
|
5.1
|
|
|
44.3
|
|
|
—
|
|
|
1,545.7
|
|
||||||
Investment in subsidiaries obligation
|
|
—
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
|
(10.9
|
)
|
|
—
|
|
||||||
Other long-term liabilities
|
|
—
|
|
|
673.1
|
|
|
0.6
|
|
|
117.1
|
|
|
—
|
|
|
790.8
|
|
||||||
Total liabilities
|
|
323.4
|
|
|
2,087.5
|
|
|
(174.7
|
)
|
|
832.7
|
|
|
(10.9
|
)
|
|
3,058.0
|
|
||||||
Total stockholders’ equity
|
|
143.4
|
|
|
466.8
|
|
|
517.0
|
|
|
834.8
|
|
|
(1,818.6
|
)
|
|
143.4
|
|
||||||
Total liabilities and stockholders’ equity
|
|
$
|
466.8
|
|
|
$
|
2,554.3
|
|
|
$
|
342.3
|
|
|
$
|
1,667.5
|
|
|
$
|
(1,829.5
|
)
|
|
$
|
3,201.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
36.9
|
|
|
$
|
—
|
|
|
$
|
117.1
|
|
|
$
|
—
|
|
|
$
|
154.0
|
|
Accounts receivable, net
|
|
—
|
|
|
102.7
|
|
|
25.6
|
|
|
330.2
|
|
|
—
|
|
|
458.5
|
|
||||||
Inventories, net
|
|
—
|
|
|
62.4
|
|
|
34.2
|
|
|
165.2
|
|
|
—
|
|
|
261.8
|
|
||||||
Other current assets
|
|
—
|
|
|
43.8
|
|
|
3.2
|
|
|
76.5
|
|
|
—
|
|
|
123.5
|
|
||||||
Total current assets
|
|
—
|
|
|
245.8
|
|
|
63.0
|
|
|
689.0
|
|
|
—
|
|
|
997.8
|
|
||||||
Property, plant and equipment, net
|
|
—
|
|
|
239.8
|
|
|
83.0
|
|
|
735.7
|
|
|
—
|
|
|
1,058.5
|
|
||||||
Goodwill
|
|
—
|
|
|
—
|
|
|
147.8
|
|
|
8.6
|
|
|
—
|
|
|
156.4
|
|
||||||
Other assets and deferred charges
|
|
—
|
|
|
671.7
|
|
|
44.8
|
|
|
99.8
|
|
|
—
|
|
|
816.3
|
|
||||||
Investment in subsidiaries
|
|
360.5
|
|
|
1,233.2
|
|
|
—
|
|
|
—
|
|
|
(1,593.7
|
)
|
|
—
|
|
||||||
Total assets
|
|
$
|
360.5
|
|
|
$
|
2,390.5
|
|
|
$
|
338.6
|
|
|
$
|
1,533.1
|
|
|
$
|
(1,593.7
|
)
|
|
$
|
3,029.0
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
—
|
|
|
$
|
106.2
|
|
|
$
|
44.5
|
|
|
$
|
295.1
|
|
|
$
|
—
|
|
|
$
|
445.8
|
|
Other current liabilities
|
|
—
|
|
|
120.4
|
|
|
4.1
|
|
|
96.8
|
|
|
—
|
|
|
221.3
|
|
||||||
Total current liabilities
|
|
—
|
|
|
226.6
|
|
|
48.6
|
|
|
391.9
|
|
|
—
|
|
|
667.1
|
|
||||||
Intercompany payable (receivable)
|
|
326.9
|
|
|
(390.1
|
)
|
|
(219.5
|
)
|
|
282.7
|
|
|
—
|
|
|
—
|
|
||||||
Long-term debt
|
|
—
|
|
|
1,500.0
|
|
|
5.3
|
|
|
53.8
|
|
|
—
|
|
|
1,559.1
|
|
||||||
Investment in subsidiaries obligation
|
|
—
|
|
|
—
|
|
|
15.2
|
|
|
—
|
|
|
(15.2
|
)
|
|
—
|
|
||||||
Other long-term liabilities
|
|
—
|
|
|
693.5
|
|
|
0.5
|
|
|
75.2
|
|
|
—
|
|
|
769.2
|
|
||||||
Total liabilities
|
|
326.9
|
|
|
2,030.0
|
|
|
(149.9
|
)
|
|
803.6
|
|
|
(15.2
|
)
|
|
2,995.4
|
|
||||||
Total stockholders’ equity
|
|
33.6
|
|
|
360.5
|
|
|
488.5
|
|
|
729.5
|
|
|
(1,578.5
|
)
|
|
33.6
|
|
||||||
Total liabilities and stockholders’ equity
|
|
$
|
360.5
|
|
|
$
|
2,390.5
|
|
|
$
|
338.6
|
|
|
$
|
1,533.1
|
|
|
$
|
(1,593.7
|
)
|
|
$
|
3,029.0
|
|
Condensed Consolidating Statements of Cash Flows
|
|
|
|
|
|
|
|
|
||||||||||||||||
Six Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
—
|
|
|
$
|
(53.1
|
)
|
|
$
|
50.6
|
|
|
$
|
84.9
|
|
|
$
|
—
|
|
|
$
|
82.4
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment
|
|
—
|
|
|
(19.7
|
)
|
|
(6.4
|
)
|
|
(77.6
|
)
|
|
—
|
|
|
(103.7
|
)
|
||||||
Proceeds from sale of property, plant and equipment
|
|
—
|
|
|
7.8
|
|
|
0.1
|
|
|
0.4
|
|
|
—
|
|
|
8.3
|
|
||||||
Net cash used in investing activities
|
|
—
|
|
|
(11.9
|
)
|
|
(6.3
|
)
|
|
(77.2
|
)
|
|
—
|
|
|
(95.4
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net debt activity
|
|
—
|
|
|
(3.0
|
)
|
|
(0.2
|
)
|
|
(10.2
|
)
|
|
—
|
|
|
(13.4
|
)
|
||||||
Intercompany activity
|
|
0.3
|
|
|
52.2
|
|
|
(44.1
|
)
|
|
(8.4
|
)
|
|
—
|
|
|
—
|
|
||||||
Debt issuance costs
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
||||||
Employee stock option exercises
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
||||||
Purchase of treasury stock
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
||||||
Net cash provided by (used in) financing activities
|
|
—
|
|
|
50.1
|
|
|
(44.3
|
)
|
|
(18.6
|
)
|
|
—
|
|
|
(12.8
|
)
|
||||||
Effect of exchange rate changes on cash
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
||||||
Net decrease in cash and cash equivalents
|
|
—
|
|
|
(14.9
|
)
|
|
—
|
|
|
(10.2
|
)
|
|
—
|
|
|
(25.1
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
36.9
|
|
|
—
|
|
|
117.1
|
|
|
—
|
|
|
154.0
|
|
||||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
22.0
|
|
|
$
|
—
|
|
|
$
|
106.9
|
|
|
$
|
—
|
|
|
$
|
128.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
—
|
|
|
$
|
(35.0
|
)
|
|
$
|
38.3
|
|
|
$
|
29.9
|
|
|
$
|
—
|
|
|
$
|
33.2
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property, plant and equipment
|
|
—
|
|
|
(35.2
|
)
|
|
(4.2
|
)
|
|
(82.1
|
)
|
|
—
|
|
|
(121.5
|
)
|
||||||
Proceeds from sale of property, plant and equipment
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.9
|
|
||||||
Proceeds from sale -leaseback of equipment
|
|
—
|
|
|
16.0
|
|
|
—
|
|
|
—
|
|
|
|
|
16.0
|
|
|||||||
Net cash used in investing activities
|
|
—
|
|
|
(14.3
|
)
|
|
(4.2
|
)
|
|
(82.1
|
)
|
|
—
|
|
|
(100.6
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net debt activity
|
|
—
|
|
|
98.0
|
|
|
(0.2
|
)
|
|
(7.1
|
)
|
|
—
|
|
|
90.7
|
|
||||||
Intercompany activity
|
|
0.1
|
|
|
(50.8
|
)
|
|
(33.9
|
)
|
|
84.6
|
|
|
—
|
|
|
—
|
|
||||||
Debt issuance costs
|
|
—
|
|
|
(6.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.6
|
)
|
||||||
Employee stock option exercises
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||||
Purchase of treasury stock
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||||
Net cash provided by (used in) financing activities
|
|
—
|
|
|
41.4
|
|
|
(34.1
|
)
|
|
77.5
|
|
|
—
|
|
|
84.8
|
|
||||||
Effect of exchange rate changes on cash
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
|
—
|
|
|
(7.9
|
)
|
|
—
|
|
|
24.4
|
|
|
—
|
|
|
16.5
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
10.6
|
|
|
—
|
|
|
51.8
|
|
|
—
|
|
|
62.4
|
|
||||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
76.2
|
|
|
$
|
—
|
|
|
$
|
78.9
|
|
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 - April 30, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
May 1 - May 31, 2014
|
|
1,438
|
|
|
18.54
|
|
|
—
|
|
|
—
|
|
|
June 1 - June 30, 2014
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
1,438
|
|
|
$
|
18.54
|
|
|
—
|
|
|
—
|
|
Number
|
|
Description of Exhibit
|
|
|
|
*31.1
|
|
Certification of David C. Dauch, President & Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act
|
|
|
|
*31.2
|
|
Certification of Michael K. Simonte, Executive Vice President & Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act
|
|
|
|
*32
|
|
Certifications of David C. Dauch, President & Chief Executive Officer and Michael K. Simonte, Executive Vice President & Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
**101.INS
|
|
XBRL Instance Document
|
|
|
|
**101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
**101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
**101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
**101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
**101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
*
|
Filed herewith
|
|
|
|
**
|
Submitted electronically with this Report.
|
|
|
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
No Customers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|