DELAWARE
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38-3161171
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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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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Title of Each Class
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Name of Each Exchange on Which Registered
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COMMON STOCK, PAR VALUE $0.01 PER SHARE
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NEW YORK STOCK EXCHANGE
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PREFERRED SHARE PURCHASE RIGHTS, PAR VALUE $0.01 PER SHARE
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NEW YORK STOCK EXCHANGE
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Page Number
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Part I
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Item 1.
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Business
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•
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Driveline products consist primarily of axles, driveshafts, power transfer units, rear drive modules, transfer cases, and electric and hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles;
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•
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Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears, transmission gears and shafts, and suspension components for Original Equipment Manufacturers and Tier 1 automotive suppliers;
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•
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The Powertrain segment products consist primarily of transmission module and differential assemblies, transmission valve bodies, connecting rod forging and assemblies, torsional vibration dampers, and variable valve timing products for Original Equipment Manufacturers and Tier I automotive suppliers; and
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•
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The Casting segment produces both thin wall castings and high strength ductile iron castings, as well as differential cases, steering knuckles, control arms, brackets, and turbo charger housings for the global light vehicle, commercial and industrial markets.
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•
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In 2017, AAM received GM's 2016 Supplier of the Year Award, which is awarded to suppliers that consistently exceed GM's expectations, create outstanding value or bring new innovations to the company.
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•
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Also in 2017, we successfully launched approximately 75 programs and facilities across our four business units, and received new business awards from a variety of customers, including a new contract further commercializing our electric driveline systems technology at our e-AAM Driveline Systems AB (e-AAM) subsidiary.
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•
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We continue to focus on cost management through the implementation of the AAM Operating System to improve quality, eliminate waste and reduce lead time and total costs globally.
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•
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We have established a cost competitive, operationally flexible global manufacturing, engineering and sourcing footprint to increase our presence in global growth markets, support global product development initiatives and establish regional cost competitiveness.
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•
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Our business is vertically integrated to reduce cost and mitigate risk in the supply chain. Our acquisition of USM Mexico Manufacturing LLC (USM Mexico) in the first quarter of 2017 furthered our efforts to vertically integrate the supply chain and helped ensure continuity of supply for certain parts to our largest manufacturing facility.
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•
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In 2017, the following facilities were recognized with the GM Supplier Quality Excellence Award for outstanding quality performance: Auburn Hills Manufacturing Facility in Michigan, Bluffton Manufacturing Facility in Indiana, Chicago Manufacturing Facility in Illinois, Colfor Minerva Manufacturing Facility in Ohio, Changshu Manufacturing Facility in China and Pyeongtaek Manufacturing Facility in South Korea.
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•
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In 2017, our Twinsburg Manufacturing Facility in Ohio earned the highest score possible on GM's Built in Quality Supply Base (BIQS) audit, and our Rayong Manufacturing Facility in Thailand earned Ford's Q1 Certification in recognition of the facility's high standards of quality.
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•
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Also in 2017, our Ramos Manufacturing Facility in Mexico earned the FCA Outstanding Quality Award, our Swidnica Manufacturing location in Poland earned the Jaguar Land Rover (JLR) "Q" Award, and our Oxford Manufacturing Facility in Michigan earned the Hino Quality Achievement Award.
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•
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AAM has an enhanced internal quality assurance system that drives continuous improvement to meet and exceed the growing expectations of our OEM customers.
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•
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In our Driveline segment, AAM's significant investment in research and development (R&D) has resulted in the development of advanced technology products designed to assist our customers in meeting the market demands for improved fuel efficiency; lower emissions; enhanced power density; advanced, sophisticated electronic controls; improved safety, ride and handling performance; and enhanced reliability and durability.
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•
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e-AAM was created to design and commercialize battery electric and hybrid driveline systems designed to improve fuel efficiency, reduce CO
2
emissions and provide AWD capability. e-AAM has secured two driveline systems contracts featuring patented e-AAM
™
electric driveline systems technology. One of these programs is expected to launch in 2018, while the other is expected to launch by 2020.
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•
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AAM's EcoTrac
®
Disconnecting AWD system is a fuel-efficient driveline system that provides OEMs the option of an all-wheel-drive system that disconnects when not needed to improve fuel efficiency and reduce CO
2
emissions compared to conventional AWD systems. This technology is featured on GM's newly designed Chevrolet Equinox and GMC Terrain, as well as FCA's AWD Jeep Cherokee and its derivatives. We are currently designing the next generation of our EcoTrac
®
Disconnecting AWD system (EcoTrac
®
Gen II), which is smaller, lighter in weight and recovers up to an estimated 90% of fuel penalty, compared to 80% currently. EcoTrac
®
Gen II is expected to launch in 2018.
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•
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AAM has established a high-efficiency product portfolio that is designed to improve axle efficiency and fuel economy through innovative product design technologies. As our customers focus on reducing weight through the use of aluminum and other lightweighting alternatives, AAM is well positioned to offer innovative, industry leading solutions. Our portfolio includes high-efficiency axles, aluminum axles and AWD applications for hybrid electric vehicles to full-electric vehicles. AAM's Quantum
TM
lightweight axle technology features a revolutionary design, which offers significant mass reduction and increased fuel economy and efficiency that is scalable across multiple applications without loss of performance or power.
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•
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In our Powertrain segment, we have identified opportunities to apply our high strength connecting rod technology and refined vibration control systems to support hybrid powertrain systems and power dense four cylinder and three cylinder engines that are smaller in size.
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•
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In our Metal Forming segment, we have developed forged axle tubes, which deliver significant weight and cost reductions as compared to the traditional welded axle tubes.
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•
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Our Casting segment has developed patented high strength ductile iron called Ductile - ITE
™
, which provides the potential to reduce mass by up to 20% while providing greater overall strength. Also in our Casting segment, we have identified an opportunity to begin utilizing three-dimensional printed sand cores in our production process, which has the potential to reduce costs and floor space requirements.
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•
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We continue to invest in emerging technology such as torque biasing capability. We have developed capabilities in the areas of control systems and mechatronics to further integrate electronic components such as motors, actuators, and sensors into AAM's mechanical technology to enhance vehicle performance and provide superior torque management.
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•
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To accelerate AAM's technological advancements, we have established our Advanced Technology Development Center (ATDC) at our Detroit campus. This state-of-the-art facility is our center for technology benchmarking, prototype development, advanced technology development, supplier collaboration, customer showcasing and associate training on our future products, processes, and systems.
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•
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We continue to evaluate and consider strategic opportunities that will complement our core strengths and supplement our diversification strategies while providing future, profitable growth prospects. Our acquisition of MPG in 2017 was a key step in achieving our goals of customer, product and geographic diversification.
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•
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In addition to maintaining and building upon our longstanding relationships with GM and FCA, we are focused on generating profitable growth with new and existing global OEM customers. New business launches in
2017
included key customers such as Ford, Jaguar Land Rover and Nissan.
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•
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We are working on approximately
$1.5 billion
in quoted and emerging new business opportunities. These opportunities would allow us to continue the diversification and expansion of our customer base, product portfolio and global footprint.
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•
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As our customers continue to design their products for global markets, they will require global support from their suppliers. For this reason, it is critical that we maintain a global presence in these markets in order to remain competitive for new contracts. As a result of our acquisition of MPG, we have expanded our global presence, primarily in Europe and Asia.
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•
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Our joint venture (JV) with Hefei Automobile Axle Co., Ltd. (HAAC), a subsidiary of the JAC Group (Anhui Jianghuai Automotive Group Co., Ltd.), which includes 100% of HAAC's light commercial axle business, continues to be a strong advantage for building relationships with leading Chinese light truck manufacturers. HAAC supplies front and rear beam axles to several leading Chinese light truck manufacturers, including JAC and Foton (Beiqi Foton Motor Co., Ltd.).
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Name
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Age
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Position
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David C. Dauch
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53
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Chairman of the Board & Chief Executive Officer
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Michael K. Simonte
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54
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President
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David E. Barnes
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59
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Vice President & General Counsel
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Timothy E. Bowes
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54
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President - Casting
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David M. Buckley
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53
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Vice President - Strategic & Business Development
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Gregory Deveson
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56
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President - Powertrain
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Terri M. Kemp
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52
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Vice President - Human Resources
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Michael J. Lynch
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53
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Vice President - Finance & Controller
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Christopher J. May
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48
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Vice President & Chief Financial Officer
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Alberto L. Satine
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61
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President - Driveline
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Norman Willemse
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61
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President - Metal Forming
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Year Ended December 31, 2017
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||||||||||||
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Driveline
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Metal Forming
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Powertrain
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Casting
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Corporate and Eliminations
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Total
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Sales
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$
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4,040.8
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$
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1,242.6
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$
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816.5
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$
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676.4
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$
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—
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$
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6,776.3
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Less: Intersegment sales
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1.1
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412.6
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9.9
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86.7
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—
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510.3
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Net external sales
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$
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4,039.7
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$
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830.0
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$
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806.6
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$
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589.7
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$
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—
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$
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6,266.0
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Segment adjusted EBITDA
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$
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692.3
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$
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232.3
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$
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131.1
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$
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47.0
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$
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—
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$
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1,102.7
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Total Assets
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$
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2,303.0
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$
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2,175.3
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$
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1,824.0
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$
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984.3
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$
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596.2
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$
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7,882.8
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Year Ended December 31, 2016
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||||||||||||
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Driveline
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Metal Forming
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Powertrain
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Casting
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Corporate and Eliminations
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Total
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||||||||||||
Sales
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$
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3,735.6
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$
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552.2
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$
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—
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$
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—
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$
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—
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$
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4,287.8
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Less: Intersegment sales
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4.9
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334.9
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—
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—
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—
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339.8
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Net external sales
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$
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3,730.7
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$
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217.3
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$
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—
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|
$
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—
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|
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$
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—
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$
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3,948.0
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||||||||||||
Segment adjusted EBITDA
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$
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515.8
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$
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103.6
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$
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—
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|
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$
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—
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|
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$
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—
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|
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$
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619.4
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|
|
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||||||||||||
Total Assets
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$
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2,183.9
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$
|
410.3
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|
$
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—
|
|
|
$
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—
|
|
|
$
|
828.1
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|
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$
|
3,422.3
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Year Ended December 31, 2015
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||||||||||||||||||||||
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|
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|
|
|
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|
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|
||||||||||||
|
|
Driveline
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Metal Forming
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Powertrain
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Casting
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Corporate and Eliminations
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Total
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||||||||||||
Sales
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$
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3,690.0
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$
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560.1
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$
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—
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$
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—
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$
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—
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$
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4,250.1
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Less: Intersegment sales
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1.8
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|
|
345.2
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|
—
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|
|
—
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|
|
—
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|
|
347.0
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||||||
Net external sales
|
|
$
|
3,688.2
|
|
|
$
|
214.9
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|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
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—
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|
|
$
|
3,903.1
|
|
|
|
|
|
|
|
|
|
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|
|
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|
||||||||||||
Segment adjusted EBITDA
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|
$
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457.4
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|
|
$
|
113.7
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|
|
$
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—
|
|
|
$
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—
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|
|
$
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—
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|
|
$
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571.1
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|
|
|
|
|
|
|
|
|
|
|
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||||||||||||
Total Assets
|
|
$
|
2,059.6
|
|
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$
|
303.5
|
|
|
$
|
—
|
|
|
$
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—
|
|
|
$
|
815.8
|
|
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$
|
3,178.9
|
|
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December 31,
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||||||||||
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2017
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2016
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2015
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||||||
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(in millions)
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||||||||||
Net sales
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||||||
United States
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$
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3,319.4
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$
|
2,147.9
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$
|
2,121.9
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Canada
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310.1
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|
|
94.7
|
|
|
119.3
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|||
Mexico
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1,393.3
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|
|
1,061.9
|
|
|
1,060.2
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South America
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161.8
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|
|
124.6
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|
|
106.6
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China
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297.3
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|
203.4
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|
185.5
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|||
All other Asia
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291.9
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|
|
208.8
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|
185.2
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Europe
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480.6
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|
|
102.8
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120.6
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Other
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11.6
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3.9
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3.8
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|||
Total net sales
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$
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6,266.0
|
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$
|
3,948.0
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$
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3,903.1
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|
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||||||
Long-lived assets
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|
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||||||
United States
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$
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4,253.8
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$
|
831.0
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|
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$
|
824.0
|
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Mexico
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993.8
|
|
|
529.2
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|
|
522.6
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|||
South America
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61.4
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|
|
61.5
|
|
|
48.5
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|||
China
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180.9
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|
129.8
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|
85.8
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|||
All other Asia
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103.4
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|
|
92.0
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|
|
103.7
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Europe
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307.4
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|
111.7
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|
120.3
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|||
Total long-lived assets
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$
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5,900.7
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$
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1,755.2
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$
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1,704.9
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Item 1A.
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Risk Factors
|
•
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reduced flexibility in planning for, or reacting to, changes in our business, the competitive environment and the industries in which we operate, and to technological and other changes;
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•
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lowered credit ratings;
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•
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reduced access to capital and increasing borrowing costs generally or for any additional indebtedness to finance future operating and capital expenses and for general corporate purposes;
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•
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reduced funds available for operations, capital expenditures and other activities; and
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•
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competitive disadvantages relative to other companies with lower debt levels.
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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North America
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Europe
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Asia
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United States
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Czech Republic
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China
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Brewton, AL (d)
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Litchfield, MI (c)
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Oslavany (b)
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Changshu (a)
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Columbiana, AL (d)
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Oxford, MI (b)
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Zbysov (b)
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Hefei (JV) (a)
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Fort Smith, AR (c)
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Rochester Hills, MI (e)
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England
|
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Huzhou City (JV) (b)
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Paris, AR (c)
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Royal Oak, MI (b)
|
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Halifax (c)
|
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Shanghai (e)
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Subiaco, AR (c)
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Southfield, MI (e)
|
|
France
|
|
Suzhou (c)
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Bolingbrook, IL (b)
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Three Rivers, MI (a)
|
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Decines (c)
|
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India
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Chicago, IL (b)
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Troy, MI (b)
|
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Lyon (c)
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Chennai (a)
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Bluffton, IN (c)
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Warren, MI (c)
|
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Germany
|
|
Jamshedpur (JV) (c)
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Columbus, IN (b)
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St. Cloud, MN (d)
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Bad Homburg (e)
|
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Pune (a), (e)
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Fort Wayne, IN (b)
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Biscoe, NC (d)
|
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Nurnberg (b)
|
|
South Korea
|
Fremont, IN (c)
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Malvern, OH (b)
|
|
Zell (b)
|
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Pyeongtaek (c)
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New Castle, IN (d)
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Minerva, OH (b)
|
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Poland
|
|
Thailand
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North Vernon, IN (c)
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Twinsburg, OH (c)
|
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Świdnica (a)
|
|
Rayong (a)
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Remington, IN (b)
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Ridgway, PA (c)
|
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Scotland
|
|
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Rochester, IN (a)
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St. Mary's, PA (c)
|
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Glasgow (a)
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Auburn Hills, MI (b)
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Charleston, SC (a)
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Spain
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|
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Coldwater, MI (b)
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Browntown, WI (d)
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Barcelona (c)
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Detroit, MI (e)
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Menomonee Falls, WI (d)
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Valencia (c)
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Fraser, MI (b)
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Reedsburg, WI (d)
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Sweden
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Kingsford, MI (d)
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Wauwatosa, WI (d)
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Trollhättan (a), (e)
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|
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Mexico
|
|
|
|
|
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Aguascalientes (c)
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Ramos Arizpe (c)
|
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South America
|
|
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El Carmen (d)
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Silao (a), (b)
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Brazil
|
|
|
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Araucária (a)
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Indaiatuba (c)
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|
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Part II
|
2017
|
1
st
Quarter
|
|
2
nd
Quarter
|
|
3
rd
Quarter
|
|
4
th
Quarter
|
|
Full Year
|
|||||||||||
|
High
|
$
|
21.20
|
|
|
$
|
17.92
|
|
|
$
|
18.21
|
|
|
$
|
18.94
|
|
|
$
|
21.20
|
|
|
Low
|
$
|
18.54
|
|
|
$
|
14.30
|
|
|
$
|
13.59
|
|
|
$
|
16.46
|
|
|
$
|
13.59
|
|
2016
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
High
|
$
|
18.52
|
|
|
$
|
16.97
|
|
|
$
|
18.00
|
|
|
$
|
19.51
|
|
|
$
|
19.51
|
|
|
Low
|
$
|
11.75
|
|
|
$
|
13.76
|
|
|
$
|
14.32
|
|
|
$
|
13.45
|
|
|
$
|
11.75
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
||||||||||
|
(in millions, except per share data)
|
|
||||||||||||||||||
Statement of income data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
6,266.0
|
|
|
$
|
3,948.0
|
|
|
$
|
3,903.1
|
|
|
$
|
3,696.0
|
|
|
$
|
3,207.3
|
|
|
Gross profit
|
1,119.1
|
|
|
726.1
|
|
|
635.4
|
|
|
522.8
|
|
|
478.7
|
|
|
|||||
Selling, general and
|
|
|
|
|
|
|
|
|
|
|
||||||||||
administrative expenses
|
390.1
|
|
|
314.2
|
|
|
274.1
|
|
|
255.2
|
|
|
238.4
|
|
|
|||||
Amortization of intangibles
|
75.3
|
|
|
5.0
|
|
|
3.2
|
|
|
0.4
|
|
|
0.1
|
|
|
|||||
Restructuring and acquisition-related costs
|
110.7
|
|
|
26.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Operating income
|
543.0
|
|
|
380.7
|
|
|
358.1
|
|
|
267.6
|
|
|
240.3
|
|
|
|||||
Net interest expense
|
(192.7
|
)
|
|
(90.5
|
)
|
|
(96.6
|
)
|
|
(97.8
|
)
|
|
(115.3
|
)
|
|
|||||
Net income
|
337.5
|
|
(a)(b)
|
240.7
|
|
(a)
|
235.6
|
|
(b)
|
143.0
|
|
(c)
|
94.5
|
|
(b)
|
|||||
Net income attributable to AAM
|
337.1
|
|
(a)(b)
|
240.7
|
|
(a)
|
235.6
|
|
(b)
|
143.0
|
|
(c)
|
94.5
|
|
(b)
|
|||||
Diluted earnings per share
|
$
|
3.21
|
|
|
$
|
3.06
|
|
|
$
|
3.02
|
|
|
$
|
1.85
|
|
|
$
|
1.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance sheet data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
376.8
|
|
|
$
|
481.2
|
|
|
$
|
282.5
|
|
|
$
|
249.2
|
|
|
$
|
154.0
|
|
|
Total assets
|
7,882.8
|
|
|
3,422.3
|
|
(d)
|
3,176.9
|
|
(d)
|
3,214.6
|
|
(d)
|
2,979.6
|
|
(d)
|
|||||
Total long-term debt, net
|
3,969.3
|
|
|
1,400.9
|
|
|
1,375.7
|
|
|
1,504.6
|
|
|
1,537.0
|
|
|
|||||
Total AAM stockholders' equity
|
1,536.0
|
|
|
504.2
|
|
(d)
|
275.7
|
|
(d)
|
87.6
|
|
(d)
|
14.7
|
|
(d)
|
|||||
Dividends declared per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Statement of cash flows data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by operating
activities
|
$
|
647.0
|
|
|
$
|
407.6
|
|
|
$
|
377.6
|
|
|
$
|
318.4
|
|
|
$
|
245.5
|
|
(e)
|
Cash used in investing activities
|
(1,378.1
|
)
|
|
(227.7
|
)
|
|
(188.1
|
)
|
|
(195.3
|
)
|
|
(213.7
|
)
|
(e)
|
|||||
Cash provided by (used in) financing
activities
|
615.6
|
|
|
18.4
|
|
|
(143.6
|
)
|
|
(21.4
|
)
|
|
61.3
|
|
(e)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
$
|
428.5
|
|
|
$
|
201.8
|
|
|
$
|
198.4
|
|
|
$
|
199.9
|
|
|
$
|
177.0
|
|
|
Capital expenditures
|
477.7
|
|
|
223.0
|
|
|
193.5
|
|
|
206.5
|
|
|
251.9
|
|
|
|||||
Acquisition of business, net of cash acquired
|
895.5
|
|
|
5.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Proceeds from government grants
|
—
|
|
|
2.8
|
|
|
5.1
|
|
|
2.1
|
|
|
—
|
|
|
|||||
Purchase buyouts of leased equipment
|
13.3
|
|
|
4.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Proceeds from sale-leaseback of equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.1
|
|
|
(a)
|
For 2017, these amounts include acquisition and integration related charges of $56.0 million, net of tax, asset impairment and plant closure costs of $2.3 million, net of tax, and implementation costs, including professional expenses, relating to restructuring of $9.0 million, net of tax. For 2016, these amounts include acquisition and integration related charges of $7.1 million, net of tax, asset impairment and plant closure costs of $4.7 million and implementation costs, including professional expenses, relating to restructuring of $6.6 million, net of tax.
|
(b)
|
Includes charges of $2.3 million, net of tax, in 2017, $0.5 million, net of tax, in 2015 and $35.1 million, net of tax, in 2013 related to debt refinancing and redemption costs.
|
(c)
|
Includes a settlement charge of $23.1 million, net of tax, related to our terminated vested lump-sum pension payout in the U.S.
|
(d)
|
Each of these amounts have been adjusted by $25.8 million, net of tax, related to the retrospective application of our change in accounting principle for indirect inventory, which was effective in the second quarter of 2017, as described in Item 8. Financial Statements and Supplementary Data - Note 1 - Organization and Summary of Significant Accounting Policies.
|
(e)
|
These amounts have been adjusted to reflect the impact of retrospectively adopting the cash flow classification guidance in Accounting Standards Update 2016-15. In 2013, we made cash payments of $27.5 million for redemption premiums, tender premiums and professional fees associated with the repayment of our remaining 9.25% Notes and 7.875% Notes. These cash payments were classified within operating activities in 2013 and the table above reflects reclassification of these payments to financing activities as required by ASU 2016-15. Also in 2013, we received $5.0 million as the beneficiary of a key man life insurance policy upon the passing of our Co-Founder and former Executive Chairman of the Board of Directors. This cash receipt was classified within operating activities in 2013 and the table above reflects reclassification of the cash receipt to investing activities as required by ASU 2016-15.
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Powertrain
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||||
Sales
|
|
$
|
4,040.8
|
|
|
$
|
1,242.6
|
|
|
$
|
816.5
|
|
|
$
|
676.4
|
|
|
$
|
—
|
|
|
$
|
6,776.3
|
|
Less: Intersegment sales
|
|
1.1
|
|
|
412.6
|
|
|
9.9
|
|
|
86.7
|
|
|
—
|
|
|
510.3
|
|
||||||
Net external sales
|
|
$
|
4,039.7
|
|
|
$
|
830.0
|
|
|
$
|
806.6
|
|
|
$
|
589.7
|
|
|
$
|
—
|
|
|
$
|
6,266.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment adjusted EBITDA
|
|
$
|
692.3
|
|
|
$
|
232.3
|
|
|
$
|
131.1
|
|
|
$
|
47.0
|
|
|
$
|
—
|
|
|
$
|
1,102.7
|
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Powertrain
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||||
Sales
|
|
$
|
3,735.6
|
|
|
$
|
552.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,287.8
|
|
Less: Intersegment sales
|
|
4.9
|
|
|
334.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
339.8
|
|
||||||
Net external sales
|
|
$
|
3,730.7
|
|
|
$
|
217.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,948.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment adjusted EBITDA
|
|
$
|
515.8
|
|
|
$
|
103.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
619.4
|
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Powertrain
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||||
Sales
|
|
$
|
3,690.0
|
|
|
$
|
560.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,250.1
|
|
Less: Intersegment sales
|
|
1.8
|
|
|
345.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
347.0
|
|
||||||
Net external sales
|
|
$
|
3,688.2
|
|
|
$
|
214.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,903.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment adjusted EBITDA
|
|
$
|
457.4
|
|
|
$
|
113.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
571.1
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
337.5
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
Interest expense
|
195.6
|
|
|
93.4
|
|
|
99.2
|
|
|||
Income tax expense
|
2.5
|
|
|
58.3
|
|
|
37.1
|
|
|||
Depreciation and amortization
|
428.5
|
|
|
201.8
|
|
|
198.4
|
|
|||
EBITDA
|
$
|
964.1
|
|
|
$
|
594.2
|
|
|
$
|
570.3
|
|
Restructuring and acquisition-related costs
|
110.7
|
|
|
26.2
|
|
|
—
|
|
|||
Debt refinancing and redemption costs
|
3.5
|
|
|
—
|
|
|
0.8
|
|
|||
Non-recurring items:
|
|
|
|
|
|
||||||
Pension settlement
|
3.2
|
|
|
—
|
|
|
—
|
|
|||
Acquisition-related fair value inventory adjustment
|
24.9
|
|
|
—
|
|
|
—
|
|
|||
Impact of change in accounting principle
|
(3.7
|
)
|
|
—
|
|
|
—
|
|
|||
Other non-recurring items
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|||
Segment Adjusted EBITDA
|
$
|
1,102.7
|
|
|
$
|
619.4
|
|
|
$
|
571.1
|
|
|
Corporate Family Rating
|
Senior Unsecured Notes Rating
|
Senior Secured Notes Rating
|
Outlook
|
Standard & Poor's
|
BB-
|
B
|
BB
|
Stable
|
Moody's Investors Services
|
B1
|
B2
|
Ba2
|
Stable
|
Fitch Ratings
|
BB-
|
BB-
|
BB+
|
Stable
|
|
Payments due by period
|
||||||||||||||||||
|
Total
|
|
<1yr
|
|
1-3 yrs
|
|
3-5 yrs
|
|
>5 yrs
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Current and long-term debt
|
$
|
4,022.5
|
|
|
$
|
50.5
|
|
|
$
|
252.4
|
|
|
$
|
1,054.8
|
|
|
$
|
2,664.8
|
|
Interest obligations
|
1,125.7
|
|
|
225.5
|
|
|
428.0
|
|
|
352.7
|
|
|
119.5
|
|
|||||
Capital lease obligations
|
28.3
|
|
|
1.7
|
|
|
1.6
|
|
|
1.9
|
|
|
23.1
|
|
|||||
Operating leases (1)
|
115.9
|
|
|
26.3
|
|
|
38.2
|
|
|
22.0
|
|
|
29.4
|
|
|||||
Purchase obligations (2)
|
356.4
|
|
|
320.8
|
|
|
35.6
|
|
|
—
|
|
|
—
|
|
|||||
Other long-term liabilities (3)
|
679.8
|
|
|
65.6
|
|
|
156.2
|
|
|
132.0
|
|
|
326.0
|
|
|||||
Total
|
$
|
6,328.6
|
|
|
$
|
690.4
|
|
|
$
|
912.0
|
|
|
$
|
1,563.4
|
|
|
$
|
3,162.8
|
|
(1)
|
Operating leases include all lease payments through the end of the contractual lease terms, which includes elections for repurchase options. These commitments include machinery and equipment, commercial office and production facilities, vehicles and other assets.
|
(2)
|
Purchase obligations represent our obligated purchase commitments for capital expenditures and related project expense.
|
(3)
|
Other long-term liabilities primarily represent our estimated pension and other postretirement benefit obligations, net of GM cost sharing, that were actuarially determined through 2026, as well as our unrecognized income tax benefits.
|
|
|
|
Expected
|
||||
|
Discount
|
|
Return on
|
||||
|
Rate
|
|
Assets
|
||||
|
(in millions)
|
||||||
Decline in funded status
|
$
|
59.0
|
|
|
N/A
|
|
|
Increase in 2017 expense
|
$
|
1.1
|
|
|
$
|
3.1
|
|
•
|
An assessment as to whether an adverse event or circumstance has triggered the need for an impairment review;
|
•
|
Determination of asset groups, the primary asset within each group, and the primary asset's average estimated useful life;
|
•
|
Undiscounted future cash flows generated by the assets; and
|
•
|
Determination of fair value when an impairment is deemed to exist, which may require assumptions related to future general economic conditions, future expected production volumes, product pricing and cost estimates, working capital and capital investment requirements, discount rates and estimated liquidation values.
|
Forward-Looking Statements
|
•
|
reduced purchases of our products by General Motors Company (GM), FCA US LLC (FCA), or other customers;
|
•
|
reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM and FCA);
|
•
|
our ability to respond to changes in technology, increased competition or pricing pressures;
|
•
|
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 attract new customers and programs for new products;
|
•
|
risks inherent in our global operations (including adverse changes in trade agreements, such as NAFTA, tariffs, immigration policies, political stability, taxes and other law changes, potential disruptions of production and supply, and currency rate fluctuations);
|
•
|
a significant disruption in operations at one or more of our key manufacturing facilities;
|
•
|
global economic conditions;
|
•
|
our ability to successfully integrate the business and information systems of Metaldyne Performance Group, Inc. (MPG) and to realize the anticipated benefits of the merger;
|
•
|
risks related to disruptions to ongoing business operations as a result of the merger with MPG, including disruptions to management time;
|
•
|
risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber attack and other similar disruptions;
|
•
|
negative or unexpected tax consequences;
|
•
|
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;
|
•
|
our ability to achieve the level of cost reductions required to sustain global cost competitiveness;
|
•
|
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;
|
•
|
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 maintain satisfactory labor relations and avoid work stoppages;
|
•
|
our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid work stoppages;
|
•
|
price volatility in, or reduced availability of, fuel;
|
•
|
potential liabilities or litigation relating to, or assumed in, the MPG merger;
|
•
|
potential adverse reactions or changes to business relationships resulting from the completion of the merger with MPG;
|
•
|
our ability to protect our intellectual property and successfully defend against assertions made against us;
|
•
|
our ability to attract and retain key associates;
|
•
|
availability of financing for working capital, capital expenditures, research and development (R&D) or other general corporate purposes including acquisitions, as well as our ability to comply with financial covenants;
|
•
|
our customers' and suppliers' availability of financing for working capital, capital expenditures, R&D or other general corporate purposes;
|
•
|
changes in liabilities arising from pension and other postretirement benefit obligations;
|
•
|
risks of noncompliance with environmental laws and regulations or risks of environmental issues that could result in unforeseen costs at our facilities or reputational damage;
|
•
|
adverse changes in laws, government regulations or market conditions affecting our products or our customers' products;
|
•
|
our ability or our customers' and suppliers' ability to comply with regulatory requirements and the potential costs of such compliance; and
|
•
|
other unanticipated events and conditions that may hinder our ability to compete.
|
Item 8.
|
Financial Statements and Supplementary Data
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions, except per share data)
|
||||||||||
|
|
|
|
|
|
||||||
Net sales
|
$
|
6,266.0
|
|
|
$
|
3,948.0
|
|
|
$
|
3,903.1
|
|
|
|
|
|
|
|
||||||
Cost of goods sold
|
5,146.9
|
|
|
3,221.9
|
|
|
3,267.7
|
|
|||
|
|
|
|
|
|
||||||
Gross profit
|
1,119.1
|
|
|
726.1
|
|
|
635.4
|
|
|||
|
|
|
|
|
|
||||||
Selling, general and administrative expenses
|
390.1
|
|
|
314.2
|
|
|
274.1
|
|
|||
|
|
|
|
|
|
||||||
Amortization of intangible assets
|
75.3
|
|
|
5.0
|
|
|
3.2
|
|
|||
|
|
|
|
|
|
||||||
Restructuring and acquisition-related costs
|
110.7
|
|
|
26.2
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
543.0
|
|
|
380.7
|
|
|
358.1
|
|
|||
|
|
|
|
|
|
||||||
Interest expense
|
(195.6
|
)
|
|
(93.4
|
)
|
|
(99.2
|
)
|
|||
|
|
|
|
|
|
||||||
Investment income
|
2.9
|
|
|
2.9
|
|
|
2.6
|
|
|||
|
|
|
|
|
|
||||||
Other income (expense)
|
|
|
|
|
|
||||||
Debt refinancing and redemption costs
|
(3.5
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||
Other, net
|
(6.8
|
)
|
|
8.8
|
|
|
12.0
|
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
340.0
|
|
|
299.0
|
|
|
272.7
|
|
|||
|
|
|
|
|
|
||||||
Income tax expense
|
2.5
|
|
|
58.3
|
|
|
37.1
|
|
|||
|
|
|
|
|
|
||||||
Net income
|
$
|
337.5
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
|
|
|
|
|
|
||||||
Net income attributable to noncontrolling interests
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Net income attributable to AAM
|
$
|
337.1
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
3.22
|
|
|
$
|
3.08
|
|
|
$
|
3.03
|
|
|
|
|
|
|
|
||||||
Diluted earnings per share
|
$
|
3.21
|
|
|
$
|
3.06
|
|
|
$
|
3.02
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Net income
|
$
|
337.5
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss)
|
|
|
|
|
|
||||||
Defined benefit plans, net of $3.4 million, $4.7 million and $(8.5) million of tax in 2017, 2016 and 2015, respectively
|
(8.5
|
)
|
|
(19.6
|
)
|
|
16.7
|
|
|||
Foreign currency translation adjustments
|
88.3
|
|
|
(3.2
|
)
|
|
(70.3
|
)
|
|||
Changes in cash flow hedges, net of tax of $(0.2) million in 2017
|
17.1
|
|
|
(10.3
|
)
|
|
(6.0
|
)
|
|||
Other comprehensive income (loss)
|
96.9
|
|
|
(33.1
|
)
|
|
(59.6
|
)
|
|||
|
|
|
|
|
|
||||||
Comprehensive income
|
$
|
434.4
|
|
|
$
|
207.6
|
|
|
$
|
176.0
|
|
|
|
|
|
|
|
||||||
Net income attributable to noncontrolling interests
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive income attributable to AAM
|
$
|
434.0
|
|
|
$
|
207.6
|
|
|
$
|
176.0
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
||||
Assets
|
(in millions, except per share data)
|
||||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
376.8
|
|
|
$
|
481.2
|
|
Accounts receivable, net
|
1,035.9
|
|
|
560.0
|
|
||
Inventories, net
|
392.0
|
|
|
182.3
|
|
||
Prepaid expenses and other
|
140.3
|
|
|
75.8
|
|
||
Total current assets
|
1,945.0
|
|
|
1,299.3
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
2,402.9
|
|
|
1,093.7
|
|
||
Deferred income taxes
|
37.1
|
|
|
367.8
|
|
||
Goodwill
|
1,654.3
|
|
|
154.0
|
|
||
Intangible assets, net
|
1,212.5
|
|
|
28.5
|
|
||
GM postretirement cost sharing asset
|
252.2
|
|
|
236.1
|
|
||
Other assets and deferred charges
|
378.8
|
|
|
242.9
|
|
||
Total assets
|
$
|
7,882.8
|
|
|
$
|
3,422.3
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current portion of long-term debt
|
$
|
5.9
|
|
|
$
|
3.3
|
|
Accounts payable
|
799.0
|
|
|
382.3
|
|
||
Accrued compensation and benefits
|
200.0
|
|
|
139.3
|
|
||
Deferred revenue
|
34.1
|
|
|
24.6
|
|
||
Accrued expenses and other
|
177.4
|
|
|
102.0
|
|
||
Total current liabilities
|
1,216.4
|
|
|
651.5
|
|
||
|
|
|
|
||||
Long-term debt, net
|
3,969.3
|
|
|
1,400.9
|
|
||
Deferred revenue
|
78.8
|
|
|
70.8
|
|
||
Deferred income taxes
|
101.7
|
|
|
15.0
|
|
||
Postretirement benefits and other long-term liabilities
|
976.6
|
|
|
779.9
|
|
||
Total liabilities
|
6,342.8
|
|
|
2,918.1
|
|
||
|
|
|
|
||||
Stockholders' equity
|
|
|
|
||||
Series A junior participating preferred stock, par value $0.01 per share;
|
|
|
|
||||
0.1 million shares authorized; no shares outstanding in 2017 or 2016
|
—
|
|
|
—
|
|
||
Preferred stock, par value $0.01 per share; 10.0 million shares
|
|
|
|
||||
authorized; no shares outstanding in 2017 or 2016
|
—
|
|
|
—
|
|
||
Series common stock, par value $0.01 per share; 40.0 million
|
|
|
|
||||
shares authorized; no shares outstanding in 2017 or 2016
|
—
|
|
|
—
|
|
||
Common stock, par value $0.01 per share; 150.0 million shares authorized;
|
|
|
|
||||
118.2 million and 83.0 million shares issued as of December 31, 2017 and December 31, 2016, respectively
|
1.2
|
|
|
0.9
|
|
||
Paid-in capital
|
1,264.6
|
|
|
660.1
|
|
||
Retained earnings
|
761.0
|
|
|
423.9
|
|
||
Treasury stock at cost, 6.9 million shares in 2017 and 6.5 million shares in 2016
|
(198.1
|
)
|
|
(191.1
|
)
|
||
Accumulated other comprehensive loss
|
|
|
|
||||
Defined benefit plans, net of tax
|
(252.0
|
)
|
|
(243.5
|
)
|
||
Foreign currency translation adjustments
|
(34.1
|
)
|
|
(122.4
|
)
|
||
Unrecognized loss on cash flow hedges, net of tax
|
(6.6
|
)
|
|
(23.7
|
)
|
||
Total AAM stockholders' equity
|
1,536.0
|
|
|
504.2
|
|
||
Noncontrolling interests in subsidiaries
|
4.0
|
|
|
—
|
|
||
Total stockholders' equity
|
1,540.0
|
|
|
504.2
|
|
||
Total liabilities and stockholders' equity
|
$
|
7,882.8
|
|
|
$
|
3,422.3
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
337.5
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
||||||
Depreciation and amortization
|
428.5
|
|
|
201.8
|
|
|
198.4
|
|
|||
Impairment of property, plant and equipment
|
1.5
|
|
|
3.4
|
|
|
—
|
|
|||
Deferred income taxes
|
(154.2
|
)
|
|
33.2
|
|
|
26.4
|
|
|||
Stock-based compensation
|
43.4
|
|
|
21.0
|
|
|
15.9
|
|
|||
Pensions and other postretirement benefits, net of contributions
|
(6.0
|
)
|
|
(12.6
|
)
|
|
(25.6
|
)
|
|||
Loss on disposal of property, plant and equipment, net
|
1.6
|
|
|
4.3
|
|
|
4.2
|
|
|||
Debt refinancing and redemption costs
|
3.5
|
|
|
—
|
|
|
0.8
|
|
|||
Changes in operating assets and liabilities, net of amounts acquired
|
|
|
|
|
|
||||||
Accounts receivable
|
(44.9
|
)
|
|
(19.3
|
)
|
|
(17.9
|
)
|
|||
Inventories
|
2.5
|
|
|
12.2
|
|
|
11.2
|
|
|||
Accounts payable and accrued expenses
|
(12.6
|
)
|
|
(14.2
|
)
|
|
(2.1
|
)
|
|||
Deferred revenue
|
14.8
|
|
|
7.2
|
|
|
(26.8
|
)
|
|||
Other assets and liabilities
|
31.4
|
|
|
(70.1
|
)
|
|
(42.5
|
)
|
|||
Net cash provided by operating activities
|
647.0
|
|
|
407.6
|
|
|
377.6
|
|
|||
|
|
|
|
|
|
||||||
Investing activities
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment
|
(477.7
|
)
|
|
(223.0
|
)
|
|
(193.5
|
)
|
|||
Proceeds from sale of property, plant and equipment
|
2.5
|
|
|
1.7
|
|
|
0.3
|
|
|||
Purchase buyouts of leased equipment
|
(13.3
|
)
|
|
(4.6
|
)
|
|
—
|
|
|||
Proceeds from government grants
|
—
|
|
|
2.8
|
|
|
5.1
|
|
|||
Final distribution of Reserve Yield Plus Fund
|
—
|
|
|
1.0
|
|
|
—
|
|
|||
Proceeds from sale of business, net
|
5.9
|
|
|
—
|
|
|
—
|
|
|||
Acquisition of business, net of cash acquired
|
(895.5
|
)
|
|
(5.6
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
(1,378.1
|
)
|
|
(227.7
|
)
|
|
(188.1
|
)
|
|||
|
|
|
|
|
|
||||||
Financing activities
|
|
|
|
|
|
||||||
Net short-term proceeds from credit facilities
|
4.4
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of long-term debt
|
2,862.7
|
|
|
30.3
|
|
|
16.8
|
|
|||
Payments of long-term debt, capital lease obligations and other
|
(2,154.4
|
)
|
|
(7.0
|
)
|
|
(157.0
|
)
|
|||
Debt issuance costs
|
(91.0
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|||
Employee stock option exercises
|
0.9
|
|
|
0.3
|
|
|
0.8
|
|
|||
Purchase of treasury stock
|
(7.0
|
)
|
|
(5.2
|
)
|
|
(3.1
|
)
|
|||
Net cash provided by (used in) financing activities
|
615.6
|
|
|
18.4
|
|
|
(143.6
|
)
|
|||
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash
|
11.1
|
|
|
0.4
|
|
|
(12.6
|
)
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(104.4
|
)
|
|
198.7
|
|
|
33.3
|
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of year
|
481.2
|
|
|
282.5
|
|
|
249.2
|
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents at end of year
|
$
|
376.8
|
|
|
$
|
481.2
|
|
|
$
|
282.5
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information
|
|
|
|
|
|
||||||
Interest paid
|
$
|
182.7
|
|
|
$
|
87.2
|
|
|
$
|
93.8
|
|
Income taxes paid, net
|
$
|
31.9
|
|
|
$
|
48.6
|
|
|
$
|
11.3
|
|
Non-cash investing activities: AAM common shares issued for acquisition of MPG
|
$
|
576.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Common Stock
|
|
Retained Earnings
|
|
Accumulated Other
|
Noncontrolling
|
||||||||||||||
|
Shares
|
Par
|
Paid-in
|
(Accumulated
|
Treasury
|
Comprehensive
|
Interest
|
|||||||||||||
|
Outstanding
|
Value
|
Capital
|
Deficit)
|
Stock
|
Loss
|
in Subsidiaries
|
|||||||||||||
|
(in millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Balance at January 1, 2015
|
75.8
|
|
$
|
0.8
|
|
$
|
623.7
|
|
$
|
(31.4
|
)
|
$
|
(182.8
|
)
|
$
|
(296.9
|
)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cumulative effect of change in accounting principle (as described in Note 1)
|
|
|
|
(25.8
|
)
|
|
|
|
||||||||||||
Net income
|
|
|
|
235.6
|
|
|
|
|
||||||||||||
Changes in cash flow hedges
|
|
|
|
|
|
(6.0
|
)
|
|
||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
(70.3
|
)
|
|
||||||||||||
Defined benefit plans, net
|
|
|
|
|
|
16.7
|
|
|
||||||||||||
Exercise of stock options and vesting of restricted stock units
|
0.4
|
|
|
0.9
|
|
|
|
|
|
|||||||||||
Stock-based compensation
|
|
|
15.9
|
|
|
|
|
|
||||||||||||
Acquisition of noncontrolling interest
|
|
|
(1.6
|
)
|
|
|
|
|
||||||||||||
Purchase of treasury stock
|
(0.1
|
)
|
|
|
|
(3.1
|
)
|
|
|
|||||||||||
Balance at December 31, 2015
|
76.1
|
|
$
|
0.8
|
|
$
|
638.9
|
|
$
|
178.4
|
|
$
|
(185.9
|
)
|
$
|
(356.5
|
)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income
|
|
|
|
240.7
|
|
|
|
|
||||||||||||
Changes in cash flow hedges
|
|
|
|
|
|
(10.3
|
)
|
|
||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
(3.2
|
)
|
|
||||||||||||
Defined benefit plans, net
|
|
|
|
|
|
(19.6
|
)
|
|
||||||||||||
Exercise of stock options and vesting of restricted stock units and performance shares
|
0.7
|
|
0.1
|
|
0.2
|
|
|
|
|
|
||||||||||
Stock-based compensation
|
|
|
21.0
|
|
|
|
|
|
||||||||||||
Modified-retrospective application of ASU 2016-09
|
|
|
|
4.8
|
|
|
|
|
||||||||||||
Purchase of treasury stock
|
(0.3
|
)
|
|
|
|
(5.2
|
)
|
|
|
|||||||||||
Balance at December 31, 2016
|
76.5
|
|
$
|
0.9
|
|
$
|
660.1
|
|
$
|
423.9
|
|
$
|
(191.1
|
)
|
$
|
(389.6
|
)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income
|
|
|
|
337.1
|
|
|
|
0.4
|
|
|||||||||||
Changes in cash flow hedges
|
|
|
|
|
|
17.1
|
|
|
||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
88.3
|
|
|
||||||||||||
Defined benefit plans, net
|
|
|
|
|
|
(8.5
|
)
|
|
||||||||||||
Acquisition of MPG
|
34.3
|
|
0.3
|
|
579.6
|
|
|
(1.7
|
)
|
|
3.6
|
|
||||||||
Exercise of stock options and vesting of restricted stock units and performance shares
|
0.8
|
|
|
0.9
|
|
|
|
|
|
|||||||||||
Stock-based compensation
|
|
|
24.0
|
|
|
|
|
|
||||||||||||
Purchase of treasury stock
|
(0.3
|
)
|
|
|
|
(5.3
|
)
|
|
|
|||||||||||
Balance at December 31, 2017
|
111.3
|
|
$
|
1.2
|
|
$
|
1,264.6
|
|
$
|
761.0
|
|
$
|
(198.1
|
)
|
$
|
(292.7
|
)
|
$
|
4.0
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Raw materials and work-in-progress
|
$
|
319.7
|
|
|
$
|
163.3
|
|
Finished goods
|
89.6
|
|
|
33.8
|
|
||
Gross inventories
|
409.3
|
|
|
197.1
|
|
||
Inventory valuation reserves
|
(17.3
|
)
|
|
(14.8
|
)
|
||
Inventories, net
|
$
|
392.0
|
|
|
$
|
182.3
|
|
|
Estimated
|
|
December 31,
|
||||||
|
Useful Lives
|
|
2017
|
|
2016
|
||||
|
(years)
|
|
(in millions)
|
||||||
Land
|
Indefinite
|
|
$
|
58.0
|
|
|
$
|
24.9
|
|
Land improvements
|
10-15
|
|
20.8
|
|
|
19.2
|
|
||
Buildings and building improvements
|
15-40
|
|
465.8
|
|
|
345.5
|
|
||
Machinery and equipment
|
3-12
|
|
2,962.8
|
|
|
1,976.0
|
|
||
Construction in progress
|
|
|
567.7
|
|
|
109.9
|
|
||
|
|
|
4,075.1
|
|
|
2,475.5
|
|
||
Accumulated depreciation and amortization
|
|
|
(1,672.2
|
)
|
|
(1,381.8
|
)
|
||
Property, plant and equipment, net
|
|
|
$
|
2,402.9
|
|
|
$
|
1,093.7
|
|
|
Severance Charges
|
|
Implementation Costs
|
|
Asset Impairment Charges
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Accrual at January 1, 2016
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charges
|
0.6
|
|
|
10.2
|
|
|
4.5
|
|
|
15.3
|
|
||||
Cash utilization
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
||||
Non-cash utilization
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
|
(4.5
|
)
|
||||
Accrual at December 31, 2016
|
0.6
|
|
|
9.2
|
|
|
—
|
|
|
9.8
|
|
||||
Charges
|
2.0
|
|
|
13.9
|
|
|
1.5
|
|
|
17.4
|
|
||||
Cash utilization
|
(2.3
|
)
|
|
(23.1
|
)
|
|
—
|
|
|
(25.4
|
)
|
||||
Non-cash utilization
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
(1.5
|
)
|
||||
Accrual at December 31, 2017
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
Acquisition-Related Costs
|
|
Severance Charges
|
|
Integration Expenses
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Charges
|
$
|
40.7
|
|
|
$
|
7.2
|
|
|
$
|
45.4
|
|
|
$
|
93.3
|
|
|
|
|
|
|
|
|
|
||||||||
Total restructuring and acquisition-related charges in 2017
|
|
|
$
|
110.7
|
|
(in millions)
|
April 6, 2017
|
||
Cash consideration
|
$
|
953.5
|
|
Share consideration
|
576.7
|
|
|
Total consideration transferred
|
$
|
1,530.2
|
|
Fair value of MPG noncontrolling interests
|
3.6
|
|
|
Total fair value of MPG
|
$
|
1,533.8
|
|
|
|
||
Cash and cash equivalents
|
$
|
202.1
|
|
Accounts receivable
|
403.1
|
|
|
Inventories
|
199.0
|
|
|
Prepaid expenses and other long-term assets
|
119.9
|
|
|
Property, plant and equipment
|
973.0
|
|
|
Intangible assets
|
1,223.1
|
|
|
Total assets acquired
|
$
|
3,120.2
|
|
Accounts payable
|
287.8
|
|
|
Accrued expenses and other
|
137.7
|
|
|
Deferred income tax liabilities
|
580.5
|
|
|
Debt
|
1,918.7
|
|
|
Postretirement benefits and other long-term liabilities
|
54.1
|
|
|
Net assets acquired
|
$
|
141.4
|
|
Goodwill
|
$
|
1,392.4
|
|
(in millions)
|
March 1, 2017
|
||
Contractual purchase price
|
$
|
162.5
|
|
Adjustments to contractual purchase price for capital equipment
|
4.9
|
|
|
Adjustment to contractual purchase price for settlement of existing accounts payable balance
|
(22.8
|
)
|
|
Cash acquired
|
(0.5
|
)
|
|
Adjusted purchase price, net of cash acquired
|
$
|
144.1
|
|
Accounts receivable
|
1.1
|
|
|
Inventories
|
4.8
|
|
|
Prepaid expenses and other
|
2.4
|
|
|
Property, plant and equipment
|
38.4
|
|
|
Intangible assets
|
31.7
|
|
|
Total assets acquired
|
$
|
78.4
|
|
Accounts payable
|
10.8
|
|
|
Accrued expenses and other
|
2.7
|
|
|
Deferred income tax liabilities
|
1.2
|
|
|
Net assets acquired
|
$
|
63.7
|
|
Goodwill
|
$
|
80.4
|
|
|
Driveline
|
|
Metal Forming
|
|
Powertrain
|
|
Casting
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Balance as of January 1, 2016
|
$
|
130.5
|
|
|
$
|
23.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
154.4
|
|
Foreign currency translation
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|||||
Balance as of December 31, 2016
|
$
|
130.1
|
|
|
$
|
23.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
154.0
|
|
Acquisition of MPG
|
—
|
|
|
515.3
|
|
|
471.6
|
|
|
405.5
|
|
|
1,392.4
|
|
|||||
Acquisition of USM Mexico
|
80.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80.4
|
|
|||||
Foreign currency translation
|
0.6
|
|
|
19.7
|
|
|
7.2
|
|
|
—
|
|
|
27.5
|
|
|||||
Balance as of December 31, 2017
|
$
|
211.1
|
|
|
$
|
558.9
|
|
|
$
|
478.8
|
|
|
$
|
405.5
|
|
|
$
|
1,654.3
|
|
|
Estimated
|
|
December 31,
|
||
|
Useful Lives
|
|
2017
|
||
|
(years)
|
|
(in millions)
|
||
MPG
|
|
|
|
||
Customer platforms
|
14
|
|
$
|
950.0
|
|
Customer relationships
|
16-17
|
|
151.8
|
|
|
Technology and other
|
5-13
|
|
121.3
|
|
|
Total MPG
|
|
|
$
|
1,223.1
|
|
|
|
|
|
||
USM Mexico
|
|
|
|
||
Technology
|
13
|
|
$
|
29.5
|
|
Customer platforms
|
13
|
|
2.2
|
|
|
Total USM Mexico
|
|
|
$
|
31.7
|
|
|
|
|
|
||
Total
|
|
|
$
|
1,254.8
|
|
|
December 31,
|
|
December 31,
|
||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Capitalized computer software
|
$
|
35.6
|
|
|
$
|
(14.3
|
)
|
|
$
|
21.3
|
|
|
$
|
31.7
|
|
|
$
|
(8.5
|
)
|
|
$
|
23.2
|
|
Customer platforms
|
952.2
|
|
|
(52.9
|
)
|
|
899.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Customer relationships
|
151.8
|
|
|
(7.3
|
)
|
|
144.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Technology and other
|
150.8
|
|
|
(9.3
|
)
|
|
141.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
1,290.4
|
|
|
$
|
(83.8
|
)
|
|
$
|
1,206.6
|
|
|
$
|
31.7
|
|
|
$
|
(8.5
|
)
|
|
$
|
23.2
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Beginning balance
|
$
|
5.3
|
|
|
$
|
5.7
|
|
Foreign currency translation
|
0.6
|
|
|
(0.4
|
)
|
||
Ending balance
|
$
|
5.9
|
|
|
$
|
5.3
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Revolving credit facility
|
$
|
—
|
|
|
$
|
—
|
|
Term Loan A Facility
|
92.5
|
|
|
—
|
|
||
Term Loan B Facility
|
1,526.8
|
|
|
—
|
|
||
7.75% Notes due 2019
|
200.0
|
|
|
200.0
|
|
||
6.625% Notes due 2022
|
550.0
|
|
|
550.0
|
|
||
6.50% Notes due 2027
|
500.0
|
|
|
—
|
|
||
6.25% Notes due 2025
|
700.0
|
|
|
—
|
|
||
6.25% Notes due 2021
|
400.0
|
|
|
400.0
|
|
||
5.125% Notes due 2019
|
—
|
|
|
200.0
|
|
||
Foreign credit facilities
|
53.2
|
|
|
60.4
|
|
||
Capital lease obligations
|
28.3
|
|
|
5.5
|
|
||
Debt
|
4,050.8
|
|
|
1,415.9
|
|
||
Less: Current portion of long-term debt
|
5.9
|
|
|
3.3
|
|
||
Long-term debt
|
4,044.9
|
|
|
1,412.6
|
|
||
Less: Debt issuance costs
|
75.6
|
|
|
11.7
|
|
||
Long-term debt, net
|
$
|
3,969.3
|
|
|
$
|
1,400.9
|
|
2018
|
$
|
52.2
|
|
2019
|
227.7
|
|
|
2020
|
26.3
|
|
|
2021
|
426.5
|
|
|
2022
|
630.2
|
|
|
Thereafter
|
2,687.9
|
|
|
Total
|
$
|
4,050.8
|
|
|
Location of Gain (Loss) Reclassified into Net Income
|
|
Loss Reclassified During the Twelve Months Ended December 31,
|
|
Gain/(Loss) Expected to be Reclassified During the Next 12 Months
|
||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|||||||||||
|
|
|
(in millions)
|
||||||||||||||
Currency forward contracts
|
Cost of Goods Sold
|
|
$
|
(5.3
|
)
|
|
$
|
(10.5
|
)
|
|
$
|
(10.9
|
)
|
|
$
|
(6.0
|
)
|
Variable-to-fixed interest rate swap
|
Interest Expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
Location of Gain/(Loss) Recognized in Net Income
|
|
Gain/(Loss) Recognized During the Twelve Months Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||
|
|
|
(in millions)
|
||||||||||
Currency forward contracts
|
Cost of Goods Sold
|
|
$
|
2.7
|
|
|
$
|
(5.8
|
)
|
|
$
|
(4.0
|
)
|
Currency forward contracts
|
Other Income (Expense), Net
|
|
(0.1
|
)
|
|
(0.7
|
)
|
|
(1.6
|
)
|
|||
Currency option contracts
|
Cost of Goods Sold
|
|
0.8
|
|
|
—
|
|
|
—
|
|
•
|
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.
|
|
December 31, 2017
|
|
December 31, 2016
|
|
|
||||||||||||
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
|
Input
|
||||||||
|
(in millions)
|
|
|
||||||||||||||
Balance Sheet Classification
|
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
72.8
|
|
|
$
|
72.8
|
|
|
$
|
187.2
|
|
|
$
|
187.2
|
|
|
Level 1
|
Prepaid expenses and other
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges - currency forward contracts
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
Cash flow hedges - variable-to-fixed interest rate swap
|
1.3
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
Other assets and deferred charges
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges - currency forward contracts
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
Cash flow hedges - variable-to-fixed interest rate swap
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
Accrued expenses and other
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges - currency forward contracts
|
6.0
|
|
|
6.0
|
|
|
12.3
|
|
|
12.3
|
|
|
Level 2
|
||||
Nondesignated - currency forward contracts
|
2.8
|
|
|
2.8
|
|
|
1.4
|
|
|
1.4
|
|
|
Level 2
|
||||
Postretirement benefits and other long-term liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges - currency forward contracts
|
2.6
|
|
|
2.6
|
|
|
11.4
|
|
|
11.4
|
|
|
Level 2
|
||||
Cash flow hedges - variable-to-fixed interest rate swap
|
0.3
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
|
December 31, 2017
|
|
December 31, 2016
|
|
|
||||||||||||
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
|
Input
|
||||||||
|
(in millions)
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revolving Credit Facility
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 2
|
Term Loan A Facility
|
92.5
|
|
|
92.5
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
Term Loan B Facility
|
1,526.8
|
|
|
1,528.7
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
7.75% Notes due 2019
|
200.0
|
|
|
217.5
|
|
|
200.0
|
|
|
221.0
|
|
|
Level 2
|
||||
6.625% Notes due 2022
|
550.0
|
|
|
570.2
|
|
|
550.0
|
|
|
566.1
|
|
|
Level 2
|
||||
6.50% Notes due 2027
|
500.0
|
|
|
527.5
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
6.25% Notes due 2025
|
700.0
|
|
|
736.8
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
6.25% Notes due 2021
|
400.0
|
|
|
410.0
|
|
|
400.0
|
|
|
412.0
|
|
|
Level 2
|
||||
5.125% Notes due 2019
|
—
|
|
|
—
|
|
|
200.0
|
|
|
201.7
|
|
|
Level 2
|
|
Pension Benefits
|
|
OPEB
|
|||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
|
U.S.
|
|
U.K.
|
|
U.S.
|
|
U.K.
|
|
U.S.
|
|
U.K.
|
|
|
|
|
|
|
|||||||||
Discount rate
|
3.65
|
%
|
|
2.75
|
%
|
|
4.15
|
%
|
|
2.70
|
%
|
|
4.40
|
%
|
|
3.90
|
%
|
|
3.65
|
%
|
|
4.20
|
%
|
|
4.45
|
%
|
Expected return on plan assets
|
7.45
|
%
|
|
5.10
|
%
|
|
7.50
|
%
|
|
5.00
|
%
|
|
7.50
|
%
|
|
5.00
|
%
|
|
N/A
|
|
N/A
|
|
N/A
|
|||
Rate of compensation increase
|
4.00
|
%
|
|
3.40
|
%
|
|
4.00
|
%
|
|
3.45
|
%
|
|
4.00
|
%
|
|
3.30
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
Pension Benefits
|
|
OPEB
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Change in benefit obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
717.6
|
|
|
$
|
693.1
|
|
|
$
|
571.7
|
|
|
$
|
588.4
|
|
Service cost
|
3.6
|
|
|
2.9
|
|
|
0.3
|
|
|
0.3
|
|
||||
Interest cost
|
28.9
|
|
|
28.8
|
|
|
13.3
|
|
|
14.0
|
|
||||
Plan amendments
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Actuarial loss (gain)
|
28.1
|
|
|
54.8
|
|
|
22.6
|
|
|
(6.8
|
)
|
||||
Change in GM portion of OPEB obligation
|
—
|
|
|
—
|
|
|
16.5
|
|
|
(7.2
|
)
|
||||
Participant contributions
|
0.3
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
(14.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Benefit payments
|
(40.8
|
)
|
|
(38.1
|
)
|
|
(12.5
|
)
|
|
(17.0
|
)
|
||||
MPG acquisition / business combination
|
82.3
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
||||
Currency fluctuations
|
17.8
|
|
|
(24.2
|
)
|
|
—
|
|
|
—
|
|
||||
Net change
|
106.4
|
|
|
24.5
|
|
|
41.6
|
|
|
(16.7
|
)
|
||||
Benefit obligation at end of year
|
$
|
824.0
|
|
|
$
|
717.6
|
|
|
$
|
613.3
|
|
|
$
|
571.7
|
|
|
|
|
|
|
|
|
|
||||||||
Change in plan assets
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
$
|
611.3
|
|
|
$
|
612.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
74.9
|
|
|
61.7
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
4.4
|
|
|
2.3
|
|
|
12.5
|
|
|
17.0
|
|
||||
Participant contributions
|
0.3
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||||
Benefit payments
|
(40.8
|
)
|
|
(38.1
|
)
|
|
(12.5
|
)
|
|
(17.0
|
)
|
||||
Settlements
|
(14.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
MPG acquisition / business combination
|
49.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Currency fluctuations
|
16.5
|
|
|
(27.7
|
)
|
|
—
|
|
|
—
|
|
||||
Net change
|
90.9
|
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
||||
Fair value of plan assets at end of year
|
$
|
702.2
|
|
|
$
|
611.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pension Benefits
|
|
OPEB
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Noncurrent assets
|
$
|
18.9
|
|
|
$
|
12.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
(6.0
|
)
|
|
(5.7
|
)
|
|
(30.3
|
)
|
|
(29.1
|
)
|
||||
Noncurrent liabilities
|
(134.7
|
)
|
|
(113.5
|
)
|
|
(583.0
|
)
|
|
(542.6
|
)
|
||||
Net liability
|
$
|
(121.8
|
)
|
|
$
|
(106.3
|
)
|
|
$
|
(613.3
|
)
|
|
$
|
(571.7
|
)
|
|
Pension Benefits
|
|
OPEB
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Net actuarial gain (loss)
|
$
|
(237.4
|
)
|
|
$
|
(247.9
|
)
|
|
$
|
(13.5
|
)
|
|
$
|
8.5
|
|
Net prior service credit (cost)
|
(0.1
|
)
|
|
0.5
|
|
|
7.2
|
|
|
9.9
|
|
||||
Total amounts recorded
|
$
|
(237.5
|
)
|
|
$
|
(247.4
|
)
|
|
$
|
(6.3
|
)
|
|
$
|
18.4
|
|
|
Pension Benefits
|
|
OPEB
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Service cost
|
$
|
3.6
|
|
|
$
|
2.9
|
|
|
$
|
3.2
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
Interest cost
|
28.9
|
|
|
28.8
|
|
|
28.6
|
|
|
13.3
|
|
|
14.0
|
|
|
15.0
|
|
||||||
Expected asset return
|
(44.0
|
)
|
|
(42.1
|
)
|
|
(42.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortized actuarial loss
|
7.1
|
|
|
5.5
|
|
|
6.0
|
|
|
0.6
|
|
|
0.5
|
|
|
0.8
|
|
||||||
Amortized prior service credit
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(2.7
|
)
|
|
(2.7
|
)
|
|
(2.7
|
)
|
||||||
Settlement charge
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost (credit)
|
$
|
(1.3
|
)
|
|
$
|
(5.0
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
11.5
|
|
|
$
|
12.1
|
|
|
$
|
13.5
|
|
|
U.S.
|
|
U.K.
|
||||||||||||
|
|
|
Target
|
|
|
|
Target
|
||||||||
|
2017
|
|
2016
|
|
Allocation
|
|
2017
|
|
2016
|
|
Allocation
|
||||
Equity securities
|
42.7
|
%
|
|
42.0
|
%
|
|
30% - 65%
|
|
28.6
|
%
|
|
27.3
|
%
|
|
25% - 35%
|
Fixed income securities
|
47.5
|
|
|
48.0
|
|
|
35% - 55%
|
|
57.9
|
|
|
57.0
|
|
|
55% - 65%
|
Alternative assets
|
8.2
|
|
|
9.0
|
|
|
5% - 10%
|
|
11.2
|
|
|
11.7
|
|
|
5% - 15%
|
Cash
|
1.6
|
|
|
1.0
|
|
|
0% - 5%
|
|
2.3
|
|
|
4.0
|
|
|
0% - 5%
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Asset Categories
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Cash and Cash Equivalents
|
|
$
|
10.1
|
|
|
$
|
2.8
|
|
|
$
|
—
|
|
|
$
|
12.9
|
|
Equity
|
|
|
|
|
|
|
|
|
||||||||
U.S. Large Cap
|
|
92.0
|
|
|
6.3
|
|
|
—
|
|
|
98.3
|
|
||||
U.S. Small/Mid Cap
|
|
44.0
|
|
|
1.2
|
|
|
—
|
|
|
45.2
|
|
||||
World Equity
|
|
123.5
|
|
|
6.2
|
|
|
—
|
|
|
129.7
|
|
||||
Fixed Income Securities
|
|
|
|
|
|
|
|
|
||||||||
Government & Agencies
|
|
81.3
|
|
|
46.4
|
|
|
—
|
|
|
127.7
|
|
||||
Corporate Bonds - Investment Grade
|
|
150.5
|
|
|
4.2
|
|
|
—
|
|
|
154.7
|
|
||||
Corporate Bonds - Non-investment Grade
|
|
24.8
|
|
|
1.8
|
|
|
—
|
|
|
26.6
|
|
||||
Emerging Market Debt
|
|
25.2
|
|
|
1.2
|
|
|
—
|
|
|
26.4
|
|
||||
Other
|
|
8.7
|
|
|
8.1
|
|
|
—
|
|
|
16.8
|
|
||||
Other
|
|
|
|
|
|
|
|
|
||||||||
Property Funds
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52.4
|
|
||||
Liquid Alternatives Fund
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
||||
Structured Credit Fund
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
||||
Multi Strategy Hedge Fund
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
||||
Total Plan Assets
|
|
$
|
560.1
|
|
|
$
|
78.2
|
|
|
$
|
—
|
|
|
$
|
702.2
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Asset Categories
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Cash and Cash Equivalents
|
|
$
|
10.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.4
|
|
Equity
|
|
|
|
|
|
|
|
|
||||||||
U.S. Large Cap
|
|
90.9
|
|
|
—
|
|
|
—
|
|
|
90.9
|
|
||||
U.S. Small/Mid Cap
|
|
37.3
|
|
|
—
|
|
|
—
|
|
|
37.3
|
|
||||
World Equity
|
|
106.5
|
|
|
—
|
|
|
—
|
|
|
106.5
|
|
||||
Fixed Income Securities
|
|
|
|
|
|
|
|
|
||||||||
Government & Agencies
|
|
74.7
|
|
|
33.1
|
|
|
—
|
|
|
107.8
|
|
||||
Corporate Bonds - Investment Grade
|
|
143.7
|
|
|
—
|
|
|
—
|
|
|
143.7
|
|
||||
Corporate Bonds - Non-investment Grade
|
|
26.2
|
|
|
—
|
|
|
—
|
|
|
26.2
|
|
||||
Emerging Market Debt
|
|
24.2
|
|
|
—
|
|
|
—
|
|
|
24.2
|
|
||||
Other
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
||||
Other
|
|
|
|
|
|
|
|
|
||||||||
Property Funds
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45.5
|
|
||||
Liquid Alternatives Fund
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Structured Credit Fund
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
||||
Multi Strategy Hedge Fund
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
||||
Total Plan Assets
|
|
$
|
518.9
|
|
|
$
|
33.1
|
|
|
$
|
—
|
|
|
$
|
611.3
|
|
|
|
|
Weighted-Average
|
|||
|
Number of
|
|
Grant Date Fair
|
|||
|
Shares/Units
|
|
Value per Share/Unit
|
|||
|
(in millions, except per share data)
|
|||||
Outstanding at January 1, 2015
|
1.6
|
|
|
$
|
14.54
|
|
Granted
|
0.5
|
|
|
25.21
|
|
|
Vested
|
(0.3
|
)
|
|
11.03
|
|
|
Canceled
|
(0.1
|
)
|
|
19.99
|
|
|
Outstanding at December 31, 2015
|
1.7
|
|
|
$
|
18.19
|
|
Granted
|
0.9
|
|
|
15.41
|
|
|
Vested
|
(0.7
|
)
|
|
13.23
|
|
|
Canceled
|
(0.1
|
)
|
|
18.75
|
|
|
Outstanding at December 31, 2016
|
1.8
|
|
|
$
|
18.70
|
|
Granted
|
1.3
|
|
|
18.09
|
|
|
Vested
|
(0.4
|
)
|
|
19.70
|
|
|
Canceled
|
(0.2
|
)
|
|
16.79
|
|
|
Outstanding at December 31, 2017
|
2.5
|
|
|
$
|
18.35
|
|
|
|
|
Weighted Average
|
|||
|
Number of
|
|
Grant Date Fair
|
|||
|
Shares
|
|
Value per Share
|
|||
EBITDA Awards
|
(in millions, except per share data)
|
|||||
Outstanding at January 1, 2015
|
0.2
|
|
|
$
|
27.66
|
|
Granted
|
0.1
|
|
|
37.68
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2015
|
0.3
|
|
|
$
|
32.27
|
|
Granted
|
0.2
|
|
|
28.04
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2016
|
0.5
|
|
|
$
|
30.19
|
|
Granted
|
0.2
|
|
|
39.01
|
|
|
Vested
|
(0.1
|
)
|
|
27.73
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2017
|
0.6
|
|
|
$
|
33.91
|
|
|
|
|
|
|||
TSR Awards
|
|
|
|
|||
Outstanding at January 1, 2015
|
0.2
|
|
|
$
|
21.11
|
|
Granted
|
0.1
|
|
|
31.22
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2015
|
0.3
|
|
|
$
|
25.77
|
|
Granted
|
0.2
|
|
|
13.16
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2016
|
0.5
|
|
|
$
|
19.55
|
|
Granted
|
0.2
|
|
|
24.58
|
|
|
Vested
|
(0.1
|
)
|
|
22.78
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2017
|
0.6
|
|
|
$
|
20.93
|
|
•
|
Requires companies to pay a one-time transition tax (Transition Tax) on certain foreign earnings for which U.S. income tax was previously deferred
|
•
|
Generally eliminates U.S. federal income taxes on dividends from foreign subsidiaries
|
•
|
Requires a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations
|
•
|
Eliminates the corporate alternative minimum tax (AMT) and changes how existing AMT credits can be realized
|
•
|
Creates a new limitation on deductible net interest expense incurred by U.S. corporations
|
•
|
Allows for immediate expensing of certain capital investments in the U.S. for the period September 27, 2017 through December 31, 2022
|
•
|
Creates a new base erosion anti-abuse minimum tax (BEAT)
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
U.S. income (loss)
|
$
|
(37.1
|
)
|
|
$
|
90.0
|
|
|
$
|
88.3
|
|
Non - U.S. income
|
377.1
|
|
|
209.0
|
|
|
184.4
|
|
|||
Total income before income taxes
|
$
|
340.0
|
|
|
$
|
299.0
|
|
|
$
|
272.7
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Current
|
|
|
|
|
|
||||||
Federal
|
$
|
87.1
|
|
|
$
|
0.4
|
|
|
$
|
0.5
|
|
Other state and local
|
(0.7
|
)
|
|
—
|
|
|
0.2
|
|
|||
Foreign
|
62.4
|
|
|
27.5
|
|
|
10.8
|
|
|||
Total current
|
$
|
148.8
|
|
|
$
|
27.9
|
|
|
$
|
11.5
|
|
|
|
|
|
|
|
||||||
Deferred
|
|
|
|
|
|
||||||
Federal
|
$
|
(122.3
|
)
|
|
$
|
31.2
|
|
|
$
|
26.4
|
|
Other state and local
|
(17.0
|
)
|
|
—
|
|
|
—
|
|
|||
Foreign
|
(7.0
|
)
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|||
Total deferred
|
(146.3
|
)
|
|
30.4
|
|
|
25.6
|
|
|||
Total income tax expense
|
$
|
2.5
|
|
|
$
|
58.3
|
|
|
$
|
37.1
|
|
|
2017
|
|
2016
|
|
2015
|
|||
Federal statutory
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Foreign income taxes
|
(28.3
|
)
|
|
(20.5
|
)
|
|
(17.6
|
)
|
Change in enacted tax rate
|
(31.6
|
)
|
|
(0.2
|
)
|
|
—
|
|
Transition tax
|
31.9
|
|
|
—
|
|
|
—
|
|
State and local
|
(1.9
|
)
|
|
—
|
|
|
0.1
|
|
Tax credits
|
(2.6
|
)
|
|
(1.1
|
)
|
|
(1.3
|
)
|
Valuation allowance
|
(1.8
|
)
|
|
0.4
|
|
|
2.6
|
|
U.S. tax on unremitted foreign earnings
|
(5.5
|
)
|
|
0.2
|
|
|
0.2
|
|
Uncertain tax positions
|
4.0
|
|
|
0.5
|
|
|
(5.7
|
)
|
Other
|
1.5
|
|
|
5.2
|
|
|
0.3
|
|
Effective income tax rate
|
0.7
|
%
|
|
19.5
|
%
|
|
13.6
|
%
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Deferred tax assets
|
|
|
|
||||
Employee benefits
|
$
|
155.9
|
|
|
$
|
219.3
|
|
Inventory
|
20.8
|
|
|
20.3
|
|
||
Net operating loss (NOL) carryforwards
|
172.4
|
|
|
126.7
|
|
||
Tax credit carryforwards
|
96.4
|
|
|
35.1
|
|
||
Capital allowance carryforwards
|
11.2
|
|
|
11.6
|
|
||
Fixed assets
|
5.1
|
|
|
15.9
|
|
||
Deferred revenue
|
14.7
|
|
|
19.3
|
|
||
Capitalized expenditures
|
35.4
|
|
|
71.9
|
|
||
Other
|
26.9
|
|
|
20.5
|
|
||
Valuation allowances
|
(180.4
|
)
|
|
(164.8
|
)
|
||
Deferred tax assets
|
$
|
358.4
|
|
|
$
|
375.8
|
|
|
|
|
|
||||
Deferred tax liabilities
|
|
|
|
||||
U.S. tax on unremitted foreign earnings
|
(2.4
|
)
|
|
—
|
|
||
Other intangible assets
|
(281.6
|
)
|
|
—
|
|
||
Fixed assets
|
(120.3
|
)
|
|
(23.0
|
)
|
||
Other
|
(18.7
|
)
|
|
—
|
|
||
Deferred tax liabilities
|
$
|
(423.0
|
)
|
|
$
|
(23.0
|
)
|
|
|
|
|
||||
Deferred tax asset (liability), net
|
$
|
(64.6
|
)
|
|
$
|
352.8
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
U.S. federal and state deferred tax asset (liability), net
|
$
|
(79.4
|
)
|
|
$
|
340.9
|
|
Other foreign deferred tax asset, net
|
14.8
|
|
|
11.9
|
|
||
Deferred tax asset (liability), net
|
$
|
(64.6
|
)
|
|
$
|
352.8
|
|
|
Unrecognized Income Tax
|
|
Interest and
|
||||
|
Benefits
|
|
Penalties
|
||||
|
(in millions)
|
||||||
Balance at January 1, 2015
|
$
|
47.3
|
|
|
$
|
12.2
|
|
Increase in prior year tax positions
|
—
|
|
|
1.4
|
|
||
Decrease in prior year tax positions
|
(9.4
|
)
|
|
(4.9
|
)
|
||
Increase in current year tax positions
|
8.8
|
|
|
—
|
|
||
Foreign currency remeasurement adjustment
|
(5.1
|
)
|
|
(1.8
|
)
|
||
Balance at December 31, 2015
|
$
|
41.6
|
|
|
$
|
6.9
|
|
Increase in prior year tax positions
|
0.4
|
|
|
2.0
|
|
||
Decrease in prior year tax positions
|
(2.5
|
)
|
|
(0.5
|
)
|
||
Increase in current year tax positions
|
9.3
|
|
|
—
|
|
||
Settlement
|
(17.3
|
)
|
|
(5.6
|
)
|
||
Foreign currency remeasurement adjustment
|
(3.3
|
)
|
|
(0.3
|
)
|
||
Balance at December 31, 2016
|
$
|
28.2
|
|
|
$
|
2.5
|
|
Increase in prior year tax positions
|
1.5
|
|
|
3.1
|
|
||
Decrease in prior year tax positions
|
(0.4
|
)
|
|
—
|
|
||
Increase in current year tax positions
|
10.5
|
|
|
—
|
|
||
Increase from acquisitions
|
8.3
|
|
|
1.9
|
|
||
Settlement
|
(1.2
|
)
|
|
(0.1
|
)
|
||
Foreign currency remeasurement adjustment
|
0.8
|
|
|
0.1
|
|
||
Balance at December 31, 2017
|
$
|
47.7
|
|
|
$
|
7.5
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions, except per share data)
|
||||||||||
Numerator
|
|
|
|
|
|
||||||
Net income attributable to AAM
|
$
|
337.1
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
Less: Net income allocated to participating securities
|
(7.5
|
)
|
|
(5.5
|
)
|
|
(5.3
|
)
|
|||
Net income attributable to common shareholders - Basic and Dilutive
|
$
|
329.6
|
|
|
$
|
235.2
|
|
|
$
|
230.3
|
|
|
|
|
|
|
|
||||||
Denominators
|
|
|
|
|
|
||||||
Basic common shares outstanding -
|
|
|
|
|
|
||||||
Weighted-average shares outstanding
|
104.6
|
|
|
78.2
|
|
|
77.7
|
|
|||
Less: Participating securities
|
(2.3
|
)
|
|
(1.8
|
)
|
|
(1.8
|
)
|
|||
Weighted-average common shares outstanding
|
102.3
|
|
|
76.4
|
|
|
75.9
|
|
|||
|
|
|
|
|
|
||||||
Effect of dilutive securities -
|
|
|
|
|
|
||||||
Dilutive stock-based compensation
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|||
|
|
|
|
|
|
||||||
Diluted shares outstanding -
|
|
|
|
|
|
||||||
Adjusted weighted-average shares after assumed conversions
|
102.8
|
|
|
76.9
|
|
|
76.3
|
|
|||
|
|
|
|
|
|
||||||
Basic EPS
|
$
|
3.22
|
|
|
$
|
3.08
|
|
|
$
|
3.03
|
|
|
|
|
|
|
|
||||||
Diluted EPS
|
$
|
3.21
|
|
|
$
|
3.06
|
|
|
$
|
3.02
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Beginning balance
|
$
|
42.9
|
|
|
$
|
36.6
|
|
Accruals
|
20.6
|
|
|
16.0
|
|
||
Settlements
|
(5.6
|
)
|
|
(7.3
|
)
|
||
Adjustments to prior period accruals
|
(9.2
|
)
|
|
(2.3
|
)
|
||
Foreign currency translation
|
0.8
|
|
|
(0.1
|
)
|
||
Ending balance
|
$
|
49.5
|
|
|
$
|
42.9
|
|
|
Defined Benefit Plans
|
|
Foreign Currency Translation Adjustments
|
|
Unrecognized Loss on Cash Flow Hedges
|
|
Total
|
||||||||
Balance at January 1, 2015
|
$
|
(240.6
|
)
|
|
$
|
(48.9
|
)
|
|
$
|
(7.4
|
)
|
|
$
|
(296.9
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications
|
21.2
|
|
|
(70.3
|
)
|
|
(16.9
|
)
|
|
(66.0
|
)
|
||||
Income tax effect of other comprehensive income (loss) before reclassifications
|
(7.2
|
)
|
|
—
|
|
|
—
|
|
|
(7.2
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss into net income
|
4.0
|
|
(a)
|
—
|
|
|
10.9
|
|
(b)
|
14.9
|
|
||||
Income taxes reclassified into net income
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
16.7
|
|
|
(70.3
|
)
|
|
(6.0
|
)
|
|
(59.6
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2015
|
$
|
(223.9
|
)
|
|
$
|
(119.2
|
)
|
|
$
|
(13.4
|
)
|
|
$
|
(356.5
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications
|
(27.5
|
)
|
|
(3.2
|
)
|
|
(20.8
|
)
|
|
(51.5
|
)
|
||||
Income tax effect of other comprehensive loss before reclassifications
|
5.8
|
|
|
—
|
|
|
—
|
|
|
5.8
|
|
||||
Amounts reclassified from accumulated other comprehensive loss into net income
|
3.2
|
|
(a)
|
—
|
|
|
10.5
|
|
(b)
|
13.7
|
|
||||
Income taxes reclassified into net income
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive loss
|
(19.6
|
)
|
|
(3.2
|
)
|
|
(10.3
|
)
|
|
(33.1
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2016
|
$
|
(243.5
|
)
|
|
$
|
(122.4
|
)
|
|
$
|
(23.7
|
)
|
|
$
|
(389.6
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications
|
(20.1
|
)
|
|
88.3
|
|
|
12.0
|
|
|
80.2
|
|
||||
Income tax effect of other comprehensive income (loss) before reclassifications
|
5.5
|
|
|
—
|
|
|
(0.2
|
)
|
|
5.3
|
|
||||
Amounts reclassified from accumulated other comprehensive loss into net income
|
8.2
|
|
(a)
|
—
|
|
|
5.3
|
|
(b)
|
13.5
|
|
||||
Income taxes reclassified into net income
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
(8.5
|
)
|
|
88.3
|
|
|
17.1
|
|
|
96.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2017
|
$
|
(252.0
|
)
|
|
$
|
(34.1
|
)
|
|
$
|
(6.6
|
)
|
|
$
|
(292.7
|
)
|
|
|
|
|
|
|
|
|
||||||||
(a) The amount reclassified from AOCI included $8.7 million in cost of goods sold (COGS) and $(0.5) million in selling, general & administrative expenses (SG&A) for the year ended December 31, 2017, $4.4 million in COGS and $(1.2) million in SG&A for the year ended December 31, 2016 and $4.8 million in COGS and $(0.8) million in SG&A for the year ended December 31, 2015.
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
(b) The amounts reclassified from AOCI are included in COGS.
|
|||||||||||||||
|
|
|
|
|
|
|
|
•
|
Driveline products consist primarily of axles, driveshafts, power transfer units, rear drive modules, transfer cases, and electric and hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles;
|
•
|
Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears, transmission gears and shafts, and suspension components for Original Equipment Manufacturers and Tier 1 automotive suppliers;
|
•
|
The Powertrain segment products consist primarily of transmission module and differential assemblies, transmission valve bodies, connecting rod forging and assemblies, torsional vibration dampers, and variable valve timing products for Original Equipment Manufacturers and Tier I automotive suppliers; and
|
•
|
The Casting segment produces both thin wall castings and high strength ductile iron castings, as well as differential cases, steering knuckles, control arms, brackets, and turbo charger housings for the global light vehicle, commercial and industrial markets.
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Powertrain
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||||
Sales
|
|
$
|
4,040.8
|
|
|
$
|
1,242.6
|
|
|
$
|
816.5
|
|
|
$
|
676.4
|
|
|
$
|
—
|
|
|
$
|
6,776.3
|
|
Less: Intersegment sales
|
|
1.1
|
|
|
412.6
|
|
|
9.9
|
|
|
86.7
|
|
|
—
|
|
|
510.3
|
|
||||||
Net external sales
|
|
$
|
4,039.7
|
|
|
$
|
830.0
|
|
|
$
|
806.6
|
|
|
$
|
589.7
|
|
|
$
|
—
|
|
|
$
|
6,266.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment adjusted EBITDA
|
|
$
|
692.3
|
|
|
$
|
232.3
|
|
|
$
|
131.1
|
|
|
$
|
47.0
|
|
|
$
|
—
|
|
|
$
|
1,102.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
$
|
189.4
|
|
|
$
|
95.1
|
|
|
$
|
81.7
|
|
|
$
|
50.8
|
|
|
$
|
11.5
|
|
|
$
|
428.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
|
$
|
296.9
|
|
|
$
|
65.2
|
|
|
$
|
84.7
|
|
|
$
|
30.9
|
|
|
$
|
—
|
|
|
$
|
477.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Assets
|
|
$
|
2,303.0
|
|
|
$
|
2,175.3
|
|
|
$
|
1,824.0
|
|
|
$
|
984.3
|
|
|
$
|
596.2
|
|
|
$
|
7,882.8
|
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Powertrain
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||||
Sales
|
|
$
|
3,735.6
|
|
|
$
|
552.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,287.8
|
|
Less: Intersegment sales
|
|
4.9
|
|
|
334.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
339.8
|
|
||||||
Net external sales
|
|
$
|
3,730.7
|
|
|
$
|
217.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,948.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment adjusted EBITDA
|
|
$
|
515.8
|
|
|
$
|
103.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
619.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
$
|
160.8
|
|
|
$
|
24.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16.9
|
|
|
$
|
201.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
|
$
|
159.0
|
|
|
$
|
22.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41.1
|
|
|
$
|
223.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Assets
|
|
$
|
2,183.9
|
|
|
$
|
410.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
828.1
|
|
|
$
|
3,422.3
|
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Powertrain
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||||
Sales
|
|
$
|
3,690.0
|
|
|
$
|
560.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,250.1
|
|
Less: Intersegment sales
|
|
1.8
|
|
|
345.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
347.0
|
|
||||||
Net external sales
|
|
$
|
3,688.2
|
|
|
$
|
214.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,903.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment adjusted EBITDA
|
|
$
|
457.4
|
|
|
$
|
113.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
571.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
$
|
159.1
|
|
|
$
|
23.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15.6
|
|
|
$
|
198.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
|
$
|
154.0
|
|
|
$
|
20.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18.6
|
|
|
$
|
193.5
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||
Segment adjusted EBITDA
|
|
$
|
1,102.7
|
|
|
$
|
619.4
|
|
|
$
|
571.1
|
|
Interest expense
|
|
(195.6
|
)
|
|
(93.4
|
)
|
|
(99.2
|
)
|
|||
Depreciation and amortization
|
|
(428.5
|
)
|
|
(201.8
|
)
|
|
(198.4
|
)
|
|||
Restructuring and acquisition-related costs
|
|
(110.7
|
)
|
|
(26.2
|
)
|
|
—
|
|
|||
Pension settlement
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|||
Acquisition-related fair value inventory adjustment
|
|
(24.9
|
)
|
|
—
|
|
|
—
|
|
|||
Impact of change in accounting principle
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|||
Debt refinancing and redemption costs
|
|
(3.5
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||
Other
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|||
Income before income taxes
|
|
$
|
340.0
|
|
|
$
|
299.0
|
|
|
$
|
272.7
|
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Net sales
|
|
|
|
|
|
||||||
United States
|
$
|
3,319.4
|
|
|
$
|
2,147.9
|
|
|
$
|
2,121.9
|
|
Canada
|
310.1
|
|
|
94.7
|
|
|
119.3
|
|
|||
Mexico
|
1,393.3
|
|
|
1,061.9
|
|
|
1,060.2
|
|
|||
South America
|
161.8
|
|
|
124.6
|
|
|
106.6
|
|
|||
China
|
297.3
|
|
|
203.4
|
|
|
185.5
|
|
|||
All other Asia
|
291.9
|
|
|
208.8
|
|
|
185.2
|
|
|||
Europe
|
480.6
|
|
|
102.8
|
|
|
120.6
|
|
|||
Other
|
11.6
|
|
|
3.9
|
|
|
3.8
|
|
|||
Total net sales
|
$
|
6,266.0
|
|
|
$
|
3,948.0
|
|
|
$
|
3,903.1
|
|
|
|
|
|
|
|
||||||
Long-lived assets
|
|
|
|
|
|
||||||
United States
|
$
|
4,253.8
|
|
|
$
|
831.0
|
|
|
$
|
824.0
|
|
Mexico
|
993.8
|
|
|
529.2
|
|
|
522.6
|
|
|||
South America
|
61.4
|
|
|
61.5
|
|
|
48.5
|
|
|||
China
|
180.9
|
|
|
129.8
|
|
|
85.8
|
|
|||
All other Asia
|
103.4
|
|
|
92.0
|
|
|
103.7
|
|
|||
Europe
|
307.4
|
|
|
111.7
|
|
|
120.3
|
|
|||
Total long-lived assets
|
$
|
5,900.7
|
|
|
$
|
1,755.2
|
|
|
$
|
1,704.9
|
|
|
Three Months Ended,
|
|
||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
|
||||||||
|
(in millions, except per share data)
|
|
||||||||||||||
2017
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
1,049.9
|
|
|
$
|
1,757.8
|
|
|
$
|
1,724.4
|
|
|
$
|
1,733.9
|
|
|
Gross profit
|
210.7
|
|
|
316.4
|
|
|
297.7
|
|
|
294.3
|
|
|
||||
Net income
|
78.4
|
|
|
66.3
|
|
|
86.3
|
|
|
106.5
|
|
|
||||
Net income attributable to AAM
|
78.4
|
|
|
66.2
|
|
|
86.2
|
|
|
106.3
|
|
|
||||
Basic EPS
(1)
|
$
|
1.00
|
|
|
$
|
0.59
|
|
|
$
|
0.76
|
|
|
$
|
0.93
|
|
|
Diluted EPS
(1)
|
$
|
0.99
|
|
|
$
|
0.59
|
|
|
$
|
0.75
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2016
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
969.2
|
|
|
$
|
1,025.4
|
|
|
$
|
1,006.9
|
|
|
$
|
946.5
|
|
|
Gross profit
|
174.0
|
|
|
191.4
|
|
|
181.2
|
|
|
179.5
|
|
(2)
|
||||
Net income
|
61.1
|
|
|
71.0
|
|
|
61.7
|
|
|
46.9
|
|
|
||||
Net income attributable to AAM
|
61.1
|
|
|
71.0
|
|
|
61.7
|
|
|
46.9
|
|
|
||||
Basic EPS
(1)
|
$
|
0.78
|
|
|
$
|
0.91
|
|
|
$
|
0.79
|
|
|
$
|
0.60
|
|
|
Diluted EPS
(1)
|
$
|
0.78
|
|
|
$
|
0.90
|
|
|
$
|
0.78
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidating Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External
|
$
|
—
|
|
|
$
|
1,074.6
|
|
|
$
|
1,668.2
|
|
|
$
|
3,523.2
|
|
|
$
|
—
|
|
|
$
|
6,266.0
|
|
Intercompany
|
—
|
|
|
2.4
|
|
|
285.2
|
|
|
27.5
|
|
|
(315.1
|
)
|
|
—
|
|
||||||
Total net sales
|
—
|
|
|
1,077.0
|
|
|
1,953.4
|
|
|
3,550.7
|
|
|
(315.1
|
)
|
|
6,266.0
|
|
||||||
Cost of goods sold
|
—
|
|
|
996.6
|
|
|
1,730.9
|
|
|
2,734.5
|
|
|
(315.1
|
)
|
|
5,146.9
|
|
||||||
Gross profit
|
—
|
|
|
80.4
|
|
|
222.5
|
|
|
816.2
|
|
|
—
|
|
|
1,119.1
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
223.2
|
|
|
63.9
|
|
|
103.0
|
|
|
—
|
|
|
390.1
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
5.6
|
|
|
67.5
|
|
|
2.2
|
|
|
—
|
|
|
75.3
|
|
||||||
Restructuring and acquisition-related costs
|
—
|
|
|
105.2
|
|
|
1.9
|
|
|
3.6
|
|
|
—
|
|
|
110.7
|
|
||||||
Operating income (loss)
|
—
|
|
|
(253.6
|
)
|
|
89.2
|
|
|
707.4
|
|
|
—
|
|
|
543.0
|
|
||||||
Non-operating income (expense), net
|
—
|
|
|
(210.0
|
)
|
|
18.6
|
|
|
(11.6
|
)
|
|
—
|
|
|
(203.0
|
)
|
||||||
Income (loss) before income taxes
|
—
|
|
|
(463.6
|
)
|
|
107.8
|
|
|
695.8
|
|
|
—
|
|
|
340.0
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
194.1
|
|
|
(247.0
|
)
|
|
55.4
|
|
|
—
|
|
|
2.5
|
|
||||||
Earnings from equity in subsidiaries
|
337.1
|
|
|
289.5
|
|
|
76.1
|
|
|
—
|
|
|
(702.7
|
)
|
|
—
|
|
||||||
Net income (loss) before royalties
|
337.1
|
|
|
(368.2
|
)
|
|
430.9
|
|
|
640.4
|
|
|
(702.7
|
)
|
|
337.5
|
|
||||||
Royalties
|
—
|
|
|
317.3
|
|
|
3.6
|
|
|
(320.9
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) after royalties
|
337.1
|
|
|
(50.9
|
)
|
|
434.5
|
|
|
319.5
|
|
|
(702.7
|
)
|
|
337.5
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
||||||
Net income (loss) attributable to AAM
|
$
|
337.1
|
|
|
$
|
(50.9
|
)
|
|
$
|
434.5
|
|
|
$
|
319.1
|
|
|
$
|
(702.7
|
)
|
|
$
|
337.1
|
|
Other comprehensive income, net of tax
|
96.9
|
|
|
40.1
|
|
|
87.3
|
|
|
102.6
|
|
|
(230.0
|
)
|
|
96.9
|
|
||||||
Comprehensive income (loss)
|
$
|
434.0
|
|
|
$
|
(10.8
|
)
|
|
$
|
521.8
|
|
|
$
|
421.7
|
|
|
$
|
(932.7
|
)
|
|
$
|
434.0
|
|
2016
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External
|
$
|
—
|
|
|
$
|
1,109.6
|
|
|
$
|
212.2
|
|
|
$
|
2,626.2
|
|
|
$
|
—
|
|
|
$
|
3,948.0
|
|
Intercompany
|
—
|
|
|
8.3
|
|
|
241.6
|
|
|
16.1
|
|
|
(266.0
|
)
|
|
—
|
|
||||||
Total net sales
|
—
|
|
|
1,117.9
|
|
|
453.8
|
|
|
2,642.3
|
|
|
(266.0
|
)
|
|
3,948.0
|
|
||||||
Cost of goods sold
|
—
|
|
|
1,063.8
|
|
|
375.4
|
|
|
2,048.7
|
|
|
(266.0
|
)
|
|
3,221.9
|
|
||||||
Gross profit
|
—
|
|
|
54.1
|
|
|
78.4
|
|
|
593.6
|
|
|
—
|
|
|
726.1
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
243.6
|
|
|
—
|
|
|
70.6
|
|
|
—
|
|
|
314.2
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
||||||
Restructuring and acquisition-related costs
|
—
|
|
|
21.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
26.2
|
|
||||||
Operating income (loss)
|
—
|
|
|
(215.6
|
)
|
|
78.4
|
|
|
517.9
|
|
|
—
|
|
|
380.7
|
|
||||||
Non-operating income (expense), net
|
—
|
|
|
(96.6
|
)
|
|
10.9
|
|
|
4.0
|
|
|
—
|
|
|
(81.7
|
)
|
||||||
Income (loss) before income taxes
|
—
|
|
|
(312.2
|
)
|
|
89.3
|
|
|
521.9
|
|
|
—
|
|
|
299.0
|
|
||||||
Income tax expense
|
—
|
|
|
27.4
|
|
|
4.2
|
|
|
26.7
|
|
|
—
|
|
|
58.3
|
|
||||||
Earnings (loss) from equity in subsidiaries
|
240.7
|
|
|
267.4
|
|
|
(16.7
|
)
|
|
—
|
|
|
(491.4
|
)
|
|
—
|
|
||||||
Net income (loss) before royalties
|
240.7
|
|
|
(72.2
|
)
|
|
68.4
|
|
|
495.2
|
|
|
(491.4
|
)
|
|
240.7
|
|
||||||
Royalties
|
—
|
|
|
312.9
|
|
|
—
|
|
|
(312.9
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income after royalties
|
240.7
|
|
|
240.7
|
|
|
68.4
|
|
|
182.3
|
|
|
(491.4
|
)
|
|
240.7
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income attributable to AAM
|
$
|
240.7
|
|
|
$
|
240.7
|
|
|
$
|
68.4
|
|
|
$
|
182.3
|
|
|
$
|
(491.4
|
)
|
|
$
|
240.7
|
|
Other comprehensive loss, net of tax
|
(33.1
|
)
|
|
(33.1
|
)
|
|
(1.2
|
)
|
|
(12.1
|
)
|
|
46.4
|
|
|
(33.1
|
)
|
||||||
Comprehensive income
|
$
|
207.6
|
|
|
$
|
207.6
|
|
|
$
|
67.2
|
|
|
$
|
170.2
|
|
|
$
|
(445.0
|
)
|
|
$
|
207.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2015
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External
|
$
|
—
|
|
|
$
|
1,149.0
|
|
|
$
|
210.3
|
|
|
$
|
2,543.8
|
|
|
$
|
—
|
|
|
$
|
3,903.1
|
|
Intercompany
|
—
|
|
|
9.4
|
|
|
258.3
|
|
|
19.0
|
|
|
(286.7
|
)
|
|
—
|
|
||||||
Total net sales
|
—
|
|
|
1,158.4
|
|
|
468.6
|
|
|
2,562.8
|
|
|
(286.7
|
)
|
|
3,903.1
|
|
||||||
Cost of goods sold
|
—
|
|
|
1,114.5
|
|
|
385.2
|
|
|
2,054.7
|
|
|
(286.7
|
)
|
|
3,267.7
|
|
||||||
Gross profit
|
—
|
|
|
43.9
|
|
|
83.4
|
|
|
508.1
|
|
|
—
|
|
|
635.4
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
207.4
|
|
|
0.1
|
|
|
66.6
|
|
|
—
|
|
|
274.1
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
||||||
Operating income (loss)
|
—
|
|
|
(166.7
|
)
|
|
83.3
|
|
|
441.5
|
|
|
—
|
|
|
358.1
|
|
||||||
Non-operating income (expense), net
|
—
|
|
|
(99.3
|
)
|
|
10.1
|
|
|
3.8
|
|
|
—
|
|
|
(85.4
|
)
|
||||||
Income (loss) before income taxes
|
—
|
|
|
(266.0
|
)
|
|
93.4
|
|
|
445.3
|
|
|
—
|
|
|
272.7
|
|
||||||
Income tax expense
|
—
|
|
|
21.6
|
|
|
5.5
|
|
|
10.0
|
|
|
—
|
|
|
37.1
|
|
||||||
Earnings (loss) from equity in subsidiaries
|
235.6
|
|
|
262.3
|
|
|
(20.8
|
)
|
|
—
|
|
|
(477.1
|
)
|
|
—
|
|
||||||
Net income (loss) before royalties
|
235.6
|
|
|
(25.3
|
)
|
|
67.1
|
|
|
435.3
|
|
|
(477.1
|
)
|
|
235.6
|
|
||||||
Royalties
|
—
|
|
|
260.9
|
|
|
—
|
|
|
(260.9
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income after royalties
|
235.6
|
|
|
235.6
|
|
|
67.1
|
|
|
174.4
|
|
|
(477.1
|
)
|
|
235.6
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income attributable to AAM
|
$
|
235.6
|
|
|
$
|
235.6
|
|
|
$
|
67.1
|
|
|
$
|
174.4
|
|
|
$
|
(477.1
|
)
|
|
$
|
235.6
|
|
Other comprehensive loss, net of tax
|
(59.6
|
)
|
|
(59.6
|
)
|
|
(63.6
|
)
|
|
(68.4
|
)
|
|
191.6
|
|
|
(59.6
|
)
|
||||||
Comprehensive income
|
$
|
176.0
|
|
|
$
|
176.0
|
|
|
$
|
3.5
|
|
|
$
|
106.0
|
|
|
$
|
(285.5
|
)
|
|
$
|
176.0
|
|
Condensed Consolidating Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
|
||||||||||||
Assets
|
(in millions)
|
|
||||||||||||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
91.9
|
|
|
$
|
0.1
|
|
|
$
|
284.8
|
|
|
$
|
—
|
|
|
$
|
376.8
|
|
|
Accounts receivable, net
|
—
|
|
|
138.9
|
|
|
287.9
|
|
|
609.1
|
|
|
—
|
|
|
1,035.9
|
|
|
||||||
Intercompany receivables
|
—
|
|
|
3,475.2
|
|
|
479.9
|
|
|
7.5
|
|
|
(3,962.6
|
)
|
|
—
|
|
|
||||||
Inventories, net
|
—
|
|
|
37.2
|
|
|
147.4
|
|
|
207.4
|
|
|
—
|
|
|
392.0
|
|
|
||||||
Other current assets
|
—
|
|
|
40.4
|
|
|
9.9
|
|
|
90.0
|
|
|
—
|
|
|
140.3
|
|
|
||||||
Total current assets
|
—
|
|
|
3,783.6
|
|
|
925.2
|
|
|
1,198.8
|
|
|
(3,962.6
|
)
|
|
1,945.0
|
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
250.9
|
|
|
786.8
|
|
|
1,365.2
|
|
|
—
|
|
|
2,402.9
|
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
1,218.4
|
|
|
435.9
|
|
|
—
|
|
|
1,654.3
|
|
|
||||||
Intangible assets, net
|
—
|
|
|
21.0
|
|
|
1,155.6
|
|
|
35.9
|
|
|
—
|
|
|
1,212.5
|
|
|
||||||
Intercompany notes and accounts receivable
|
11.7
|
|
|
—
|
|
|
243.5
|
|
|
—
|
|
|
(255.2
|
)
|
|
—
|
|
|
||||||
Other assets and deferred charges
|
—
|
|
|
349.1
|
|
|
122.8
|
|
|
196.2
|
|
|
—
|
|
|
668.1
|
|
|
||||||
Investment in subsidiaries
|
2,841.3
|
|
|
1,955.2
|
|
|
1,280.1
|
|
|
—
|
|
|
(6,076.6
|
)
|
|
—
|
|
|
||||||
Total assets
|
$
|
2,853.0
|
|
|
$
|
6,359.8
|
|
|
$
|
5,732.4
|
|
|
$
|
3,232.0
|
|
|
$
|
(10,294.4
|
)
|
|
$
|
7,882.8
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion of long-term debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.9
|
|
|
$
|
—
|
|
|
$
|
5.9
|
|
|
Accounts payable
|
—
|
|
|
139.0
|
|
|
204.6
|
|
|
455.4
|
|
|
—
|
|
|
799.0
|
|
|
||||||
Intercompany payables
|
1,313.0
|
|
|
563.7
|
|
|
2,017.7
|
|
|
68.2
|
|
|
(3,962.6
|
)
|
|
—
|
|
|
||||||
Other current liabilities
|
—
|
|
|
181.6
|
|
|
52.4
|
|
|
177.5
|
|
|
—
|
|
|
411.5
|
|
|
||||||
Total current liabilities
|
1,313.0
|
|
|
884.3
|
|
|
2,274.7
|
|
|
707.0
|
|
|
(3,962.6
|
)
|
|
1,216.4
|
|
|
||||||
Intercompany notes and accounts payable
|
—
|
|
|
11.7
|
|
|
—
|
|
|
243.5
|
|
|
(255.2
|
)
|
|
—
|
|
|
||||||
Long-term debt, net
|
—
|
|
|
3,894.6
|
|
|
4.4
|
|
|
70.3
|
|
|
—
|
|
|
3,969.3
|
|
|
||||||
Other long-term liabilities
|
—
|
|
|
639.1
|
|
|
333.2
|
|
|
184.8
|
|
|
—
|
|
|
1,157.1
|
|
|
||||||
Total liabilities
|
1,313.0
|
|
|
5,429.7
|
|
|
2,612.3
|
|
|
1,205.6
|
|
|
(4,217.8
|
)
|
|
6,342.8
|
|
|
||||||
Total AAM stockholders' equity
|
1,536.0
|
|
|
930.1
|
|
|
3,120.1
|
|
|
2,022.4
|
|
|
(6,072.6
|
)
|
|
1,536.0
|
|
|
||||||
Noncontrolling interests in subsidiaries
|
4.0
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
|
(4.0
|
)
|
|
4.0
|
|
|
||||||
Total stockholders' equity
|
1,540.0
|
|
|
930.1
|
|
|
3,120.1
|
|
|
2,026.4
|
|
|
(6,076.6
|
)
|
|
1,540.0
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
2,853.0
|
|
|
$
|
6,359.8
|
|
|
$
|
5,732.4
|
|
|
$
|
3,232.0
|
|
|
$
|
(10,294.4
|
)
|
|
$
|
7,882.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2016
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
84.3
|
|
|
$
|
1.6
|
|
|
$
|
395.3
|
|
|
$
|
—
|
|
|
$
|
481.2
|
|
|
Accounts receivable, net
|
—
|
|
|
126.7
|
|
|
21.9
|
|
|
411.4
|
|
|
—
|
|
|
560.0
|
|
|
||||||
Intercompany receivables
|
—
|
|
|
442.6
|
|
|
326.0
|
|
|
9.1
|
|
|
(777.7
|
)
|
|
—
|
|
|
||||||
Inventories, net
|
—
|
|
|
31.3
|
|
|
21.5
|
|
|
129.5
|
|
|
—
|
|
|
182.3
|
|
|
||||||
Other current assets
|
—
|
|
|
29.4
|
|
|
0.5
|
|
|
45.9
|
|
|
—
|
|
|
75.8
|
|
|
||||||
Total current assets
|
—
|
|
|
714.3
|
|
|
371.5
|
|
|
991.2
|
|
|
(777.7
|
)
|
|
1,299.3
|
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
213.7
|
|
|
102.9
|
|
|
777.1
|
|
|
—
|
|
|
1,093.7
|
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
147.8
|
|
|
6.2
|
|
|
—
|
|
|
154.0
|
|
|
||||||
Intangible assets, net
|
—
|
|
|
22.8
|
|
|
—
|
|
|
5.7
|
|
|
—
|
|
|
28.5
|
|
|
||||||
Intercompany notes and accounts receivable
|
—
|
|
|
343.9
|
|
|
242.2
|
|
|
—
|
|
|
(586.1
|
)
|
|
—
|
|
|
||||||
Other assets and deferred charges
|
—
|
|
|
644.9
|
|
|
39.8
|
|
|
162.1
|
|
|
—
|
|
|
846.8
|
|
|
||||||
Investment in subsidiaries
|
826.0
|
|
|
1,542.8
|
|
|
—
|
|
|
—
|
|
|
(2,368.8
|
)
|
|
—
|
|
|
||||||
Total assets
|
$
|
826.0
|
|
|
$
|
3,482.4
|
|
|
$
|
904.2
|
|
|
$
|
1,942.3
|
|
|
$
|
(3,732.6
|
)
|
|
$
|
3,422.3
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion of long-term debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
Accounts payable
|
—
|
|
|
80.6
|
|
|
35.8
|
|
|
265.9
|
|
|
—
|
|
|
382.3
|
|
|
||||||
Intercompany payables
|
—
|
|
|
324.8
|
|
|
153.4
|
|
|
299.5
|
|
|
(777.7
|
)
|
|
—
|
|
|
||||||
Other current liabilities
|
—
|
|
|
142.2
|
|
|
4.3
|
|
|
119.4
|
|
|
—
|
|
|
265.9
|
|
|
||||||
Total current liabilities
|
—
|
|
|
547.6
|
|
|
193.5
|
|
|
688.1
|
|
|
(777.7
|
)
|
|
651.5
|
|
|
||||||
Intercompany notes and accounts payable
|
321.8
|
|
|
14.6
|
|
|
7.5
|
|
|
242.2
|
|
|
(586.1
|
)
|
|
—
|
|
|
||||||
Long-term debt, net
|
—
|
|
|
1,339.7
|
|
|
4.1
|
|
|
57.1
|
|
|
—
|
|
|
1,400.9
|
|
|
||||||
Investment in subsidiaries obligation
|
—
|
|
|
—
|
|
|
124.7
|
|
|
—
|
|
|
(124.7
|
)
|
|
—
|
|
|
||||||
Other long-term liabilities
|
—
|
|
|
754.5
|
|
|
0.6
|
|
|
110.6
|
|
|
—
|
|
|
865.7
|
|
|
||||||
Total liabilities
|
321.8
|
|
|
2,656.4
|
|
|
330.4
|
|
|
1,098.0
|
|
|
(1,488.5
|
)
|
|
2,918.1
|
|
|
||||||
Total stockholders' equity
|
504.2
|
|
|
826.0
|
|
|
573.8
|
|
|
844.3
|
|
|
(2,244.1
|
)
|
|
504.2
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
826.0
|
|
|
$
|
3,482.4
|
|
|
$
|
904.2
|
|
|
$
|
1,942.3
|
|
|
$
|
(3,732.6
|
)
|
|
$
|
3,422.3
|
|
|
Condensed Consolidating Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
410.4
|
|
|
$
|
33.1
|
|
|
$
|
203.5
|
|
|
$
|
—
|
|
|
$
|
647.0
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
(69.1
|
)
|
|
(100.4
|
)
|
|
(308.2
|
)
|
|
—
|
|
|
(477.7
|
)
|
||||||
Proceeds from sale of property, plant and equipment
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|
1.9
|
|
|
—
|
|
|
2.5
|
|
||||||
Purchase buyouts of leased equipment
|
—
|
|
|
(13.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.3
|
)
|
||||||
Proceeds from sale of business
|
—
|
|
|
7.5
|
|
|
(1.6
|
)
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||||
Acquisition of business, net of cash acquired
|
—
|
|
|
(953.5
|
)
|
|
64.6
|
|
|
(6.6
|
)
|
|
—
|
|
|
(895.5
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
(1,028.1
|
)
|
|
(37.1
|
)
|
|
(312.9
|
)
|
|
—
|
|
|
(1,378.1
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net debt activity
|
—
|
|
|
725.6
|
|
|
(0.7
|
)
|
|
(12.2
|
)
|
|
—
|
|
|
712.7
|
|
||||||
Debt issuance costs
|
—
|
|
|
(91.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(91.0
|
)
|
||||||
Employee stock option exercises
|
—
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
||||||
Purchase of treasury stock
|
(7.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
||||||
Intercompany activity
|
7.0
|
|
|
(10.2
|
)
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by (used in) financing activities
|
—
|
|
|
625.3
|
|
|
2.5
|
|
|
(12.2
|
)
|
|
—
|
|
|
615.6
|
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
11.1
|
|
|
—
|
|
|
11.1
|
|
||||||
Net increase in cash and cash equivalents
|
—
|
|
|
7.6
|
|
|
(1.5
|
)
|
|
(110.5
|
)
|
|
—
|
|
|
(104.4
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
84.3
|
|
|
1.6
|
|
|
395.3
|
|
|
—
|
|
|
481.2
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
91.9
|
|
|
$
|
0.1
|
|
|
$
|
284.8
|
|
|
$
|
—
|
|
|
$
|
376.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2016
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
78.3
|
|
|
$
|
25.3
|
|
|
$
|
304.0
|
|
|
$
|
—
|
|
|
$
|
407.6
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
(36.8
|
)
|
|
(18.0
|
)
|
|
(168.2
|
)
|
|
—
|
|
|
(223.0
|
)
|
||||||
Proceeds from sale of property, plant and equipment
|
—
|
|
|
—
|
|
|
0.3
|
|
|
1.4
|
|
|
—
|
|
|
1.7
|
|
||||||
Purchase buyouts of leased equipment
|
—
|
|
|
(4.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
||||||
Proceeds from government grants
|
—
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|
—
|
|
|
2.8
|
|
||||||
Final distribution of Reserve Yield Plus Fund
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||||
Acquisition of business, net of cash acquired
|
—
|
|
|
—
|
|
|
(5.6
|
)
|
|
—
|
|
|
—
|
|
|
(5.6
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
(40.4
|
)
|
|
(23.3
|
)
|
|
(164.0
|
)
|
|
—
|
|
|
(227.7
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net debt activity
|
—
|
|
|
(0.7
|
)
|
|
(0.4
|
)
|
|
24.4
|
|
|
—
|
|
|
23.3
|
|
||||||
Employee stock option exercises
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||||
Purchase of treasury stock
|
(5.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.2
|
)
|
||||||
Intercompany activity
|
5.2
|
|
|
(5.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by (used in) financing activities
|
—
|
|
|
(5.6
|
)
|
|
(0.4
|
)
|
|
24.4
|
|
|
—
|
|
|
18.4
|
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
32.3
|
|
|
1.6
|
|
|
164.8
|
|
|
—
|
|
|
198.7
|
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
52.0
|
|
|
—
|
|
|
230.5
|
|
|
—
|
|
|
282.5
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
84.3
|
|
|
$
|
1.6
|
|
|
$
|
395.3
|
|
|
$
|
—
|
|
|
$
|
481.2
|
|
2015
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
163.7
|
|
|
$
|
68.1
|
|
|
$
|
145.8
|
|
|
$
|
—
|
|
|
$
|
377.6
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
(36.4
|
)
|
|
(12.8
|
)
|
|
(144.3
|
)
|
|
—
|
|
|
(193.5
|
)
|
||||||
Proceeds from sale of property, plant and equipment
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
||||||
Proceeds from government grants
|
—
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
5.1
|
|
||||||
Intercompany activity
|
—
|
|
|
—
|
|
|
(55.0
|
)
|
|
—
|
|
|
55.0
|
|
|
—
|
|
||||||
Net cash used in investing activities
|
—
|
|
|
(36.3
|
)
|
|
(67.7
|
)
|
|
(139.1
|
)
|
|
55.0
|
|
|
(188.1
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net debt activity
|
—
|
|
|
(142.8
|
)
|
|
(0.4
|
)
|
|
3.0
|
|
|
—
|
|
|
(140.2
|
)
|
||||||
Employee stock option exercises
|
—
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||||
Purchase of treasury stock
|
(3.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
||||||
Intercompany activity
|
3.1
|
|
|
(3.1
|
)
|
|
—
|
|
|
55.0
|
|
|
(55.0
|
)
|
|
—
|
|
||||||
Net cash provided by (used in) financing activities
|
—
|
|
|
(145.1
|
)
|
|
(0.4
|
)
|
|
56.9
|
|
|
(55.0
|
)
|
|
(143.6
|
)
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.6
|
)
|
|
—
|
|
|
(12.6
|
)
|
||||||
Net increase in cash and cash equivalents
|
—
|
|
|
(17.7
|
)
|
|
—
|
|
|
51.0
|
|
|
—
|
|
|
33.3
|
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
69.7
|
|
|
—
|
|
|
179.5
|
|
|
—
|
|
|
249.2
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
52.0
|
|
|
$
|
—
|
|
|
$
|
230.5
|
|
|
$
|
—
|
|
|
$
|
282.5
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Part III
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accounting Fees and Services
|
Part IV
|
1.
|
All Financial Statements
|
2.
|
Financial Statement Schedules
|
3.
|
Exhibits
|
Number
|
|
Description of Exhibit
|
|
|
|
2.1
|
|
|
|
|
|
|
|
|
3.01
|
|
|
|
|
|
|
|
|
3.02
|
|
|
|
|
|
|
|
|
3.03
|
|
|
|
|
|
|
|
|
3.04
|
|
|
|
|
|
|
|
|
3.05
|
|
|
|
|
|
|
|
|
4.01
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
4.02
|
|
|
|
|
|
|
|
|
4.03
|
|
|
|
|
|
|
|
|
4.04
|
|
|
|
|
|
|
|
|
4.05
|
|
|
|
|
|
|
|
|
4.06
|
|
|
|
|
|
|
|
|
4.07
|
|
|
|
|
|
|
|
|
4.08
|
|
|
|
|
|
|
|
|
4.09
|
|
|
|
|
|
|
|
|
4.10
|
|
|
|
|
|
|
|
|
4.11
|
|
|
|
|
|
|
|
|
4.12
|
|
|
|
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
4.13
|
|
|
|
|
|
|
|
|
10.01
|
|
|
|
|
|
|
|
|
10.02
|
|
|
|
|
|
|
|
|
++10.03
|
|
|
|
|
|
|
|
|
‡10.04
|
|
|
|
|
|
|
|
|
‡10.05
|
|
|
|
|
|
|
|
|
‡10.06
|
|
|
|
|
|
|
|
|
++10.07
|
|
|
|
|
|
|
|
|
‡10.08
|
|
|
|
|
|
|
|
|
10.09
|
|
|
|
|
|
|
|
|
‡10.10
|
|
|
|
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
++10.11
|
|
|
|
|
|
|
|
|
‡10.12
|
|
|
|
|
|
|
|
|
‡10.13
|
|
|
|
|
|
|
|
|
‡10.14
|
|
|
|
|
|
|
|
|
‡10.15
|
|
|
|
|
|
|
|
|
‡10.16
|
|
|
|
|
|
|
|
|
‡10.17
|
|
|
|
|
|
|
|
|
10.18
|
|
|
|
|
|
|
|
|
10.19
|
|
|
|
|
|
|
|
|
10.20
|
|
|
|
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
‡10.21
|
|
|
|
|
|
|
|
|
‡10.22
|
|
|
|
|
|
|
|
|
‡10.23
|
|
|
|
|
|
|
|
|
‡10.24
|
|
|
|
|
|
|
|
|
‡10.25
|
|
|
|
|
|
|
|
|
‡10.26
|
|
|
|
|
|
|
|
|
‡10.27
|
|
|
|
|
|
|
|
|
‡10.28
|
|
|
|
|
|
|
|
|
‡10.29
|
|
|
|
|
|
|
|
|
‡10.30
|
|
|
|
|
|
|
|
|
‡10.31
|
|
|
|
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
‡10.32
|
|
|
|
|
|
|
|
|
‡10.33
|
|
|
|
|
|
|
|
|
‡10.34
|
|
|
|
|
|
|
|
|
10.35
|
|
|
|
|
|
|
|
|
10.36
|
|
|
|
|
|
|
|
|
10.37
|
|
|
|
|
|
|
|
|
10.38
|
|
|
|
|
|
|
|
|
‡*10.39
|
|
|
|
|
|
*12
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
*21
|
|
|
|
|
|
*23
|
|
|
|
|
|
*31.1
|
|
|
|
|
|
*31.2
|
|
|
|
|
|
*32
|
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
**101.INS
|
|
XBRL Instance Document
|
|
|
|
**101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
**101.PRE
|
|
XBRL Extension Presentation Linkbase Document
|
|
|
|
**101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
**101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
**101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
(All other exhibits are not applicable.)
|
|
|
|
|
|
|
Additions -
|
|
|
|
|
|
|
|
|
||||||||||
|
Balance at
|
|
Charged to
|
|
Acquisitions
|
|
Deductions -
|
|
|
|
Balance
|
||||||||||
|
Beginning of
|
|
Costs and
|
|
and
|
|
See Notes
|
|
|
|
At End of
|
||||||||||
|
Period
|
|
Expenses
|
|
Other (a)
|
|
Below
|
|
|
|
Period
|
||||||||||
|
(in millions)
|
||||||||||||||||||||
Year Ended December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
$
|
4.6
|
|
|
$
|
2.5
|
|
|
$
|
—
|
|
|
$
|
2.8
|
|
|
(1)
|
|
$
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for deferred taxes
|
156.9
|
|
|
31.9
|
|
|
—
|
|
|
21.5
|
|
|
(3)
|
|
167.3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Inventory valuation allowance
|
27.9
|
|
|
11.1
|
|
|
(12.2
|
)
|
|
9.7
|
|
|
(2)
|
|
17.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
4.3
|
|
|
0.4
|
|
|
—
|
|
|
1.6
|
|
|
(1)
|
|
3.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for deferred taxes
|
167.3
|
|
|
18.4
|
|
|
—
|
|
|
20.9
|
|
|
(4)
|
|
164.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Inventory valuation allowance
|
17.1
|
|
|
7.5
|
|
|
—
|
|
|
9.8
|
|
|
(2)
|
|
14.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
3.1
|
|
|
4.6
|
|
|
2.1
|
|
|
2.8
|
|
|
(1)
|
|
7.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for deferred taxes
|
164.8
|
|
|
26.6
|
|
|
13.7
|
|
|
24.7
|
|
|
(5)
|
|
180.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Inventory valuation allowance
|
14.8
|
|
|
39.1
|
|
|
9.2
|
|
|
45.8
|
|
|
(2)
|
|
17.3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
(a
)
|
Amounts represent reserves recognized in conjunction with our acquisitions in 2017, as well as the impact of eliminating our reserves on indirect inventory as a result of our change in accounting principle during the second quarter of 2017, which was retrospectively adjusted in the earliest period presented. See Note 1 - Organization and Summary of Significant Accounting Policies for further information on the change in accounting principle.
|
(1)
|
Uncollectible accounts charged off net of recoveries.
|
(2)
|
Primarily relates to inventory adjustments for physical quantity discrepancies and write-offs of excess and obsolete inventories.
|
(3)
|
Primarily reflects a reduction in deferred tax assets at various foreign locations due to foreign currency translation.
|
(4)
|
Primarily reflects a reduction in deferred tax assets at various foreign locations due to foreign currency translation, as well as the reversal of the valuation allowance of
$5.4 million
against our deferred tax assets in China.
|
(5)
|
Reflects an increase related to valuation allowances of MPG that existed as of the acquisition date and the impact of tax reform resulting from the 2017 Act. This was partially offset by the reversal of certain state valuation allowances as a result of re-evaluating our state valuation allowances subsequent to the acquisition of MPG.
|
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
|
(Registrant)
|
|
/s/ Christopher J. May
|
Christopher J. May
|
Vice President & Chief Financial Officer
|
(Chief Accounting Officer)
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ David C. Dauch
|
|
Chairman of the Board &
|
|
February 16, 2018
|
David C. Dauch
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
/s/ Christopher J. May
|
|
Vice President &
|
|
February 16, 2018
|
Christopher J. May
|
|
Chief Financial Officer
|
|
|
|
|
|
|
|
/s/ Elizabeth A. Chappell
|
|
Director
|
|
February 16, 2018
|
Elizabeth A. Chappell
|
|
|
|
|
|
|
|
|
|
/s/ William L. Kozyra
|
|
Director
|
|
February 16, 2018
|
William L. Kozyra
|
|
|
|
|
|
|
|
|
|
/s/ Peter D. Lyons
|
|
Director
|
|
February 16, 2018
|
Peter D. Lyons
|
|
|
|
|
|
|
|
|
|
/s/ James A. McCaslin
|
|
Director
|
|
February 16, 2018
|
James A. McCaslin
|
|
|
|
|
|
|
|
|
|
/s/ William P. Miller II
|
|
Director
|
|
February 16, 2018
|
William P. Miller II
|
|
|
|
|
|
|
|
|
|
/s/ John F. Smith
|
|
Director
|
|
February 16, 2018
|
John F. Smith
|
|
|
|
|
|
|
|
|
|
/s/ George Thanopoulos
|
|
Director
|
|
February 16, 2018
|
George Thanopoulos
|
|
|
|
|
|
|
|
|
|
/s/ Samuel Valenti III
|
|
Director
|
|
February 16, 2018
|
Samuel Valenti III
|
|
|
|
|
a.
|
who remains an Eligible Employee through the last day of a Program Year and continuously throughout the next succeeding Program Year up to and including the Payment Date; or
|
b.
|
whose participation in the Program terminated during the Program Year due to the Participant’s:
|
i.
|
death; or
|
ii.
|
Disability; or
|
iii.
|
Retirement;
|
1.
|
the bonus award percentage which corresponds to the applicable Performance Measure for the Program Year;
|
2.
|
multiplied by the Weighted Percentage assigned to each such Performance Measure;
|
3.
|
multiplied by the Covered Earnings of the Executive Officer for the Program Year;
|
4.
|
multiplied by the Bonus Award Multiplier of the Executive Officer for the Program Year.
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
(Unaudited)
|
||||||||||||||||||
|
(in millions, except for ratios)
|
||||||||||||||||||
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, including amortization of debt issuance costs
|
$
|
195.6
|
|
|
$
|
93.4
|
|
|
$
|
99.2
|
|
|
$
|
99.9
|
|
|
$
|
115.9
|
|
Other fixed charges
(a)
|
30.9
|
|
|
14.6
|
|
|
12.1
|
|
|
12.8
|
|
|
11.9
|
|
|||||
Total fixed charges as defined
|
$
|
226.5
|
|
|
$
|
108.0
|
|
|
$
|
111.3
|
|
|
$
|
112.7
|
|
|
$
|
127.8
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before income tax expense (benefit)
|
$
|
340.0
|
|
|
$
|
299.0
|
|
|
$
|
272.7
|
|
|
$
|
176.7
|
|
|
$
|
86.3
|
|
Total fixed charges as defined
|
226.5
|
|
|
108.0
|
|
|
111.3
|
|
|
112.7
|
|
|
127.8
|
|
|||||
Other adjustments
(b)
|
(12.0
|
)
|
|
(6.5
|
)
|
|
(3.8
|
)
|
|
(2.8
|
)
|
|
(5.5
|
)
|
|||||
Total earnings as defined
|
$
|
554.5
|
|
|
$
|
400.5
|
|
|
$
|
380.2
|
|
|
$
|
286.6
|
|
|
$
|
208.6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
2.45
|
|
|
3.71
|
|
|
3.42
|
|
2.54
|
|
1.63
|
||||||||
|
|
|
|
|
|
|
|
|
|
Subsidiary (1)
|
Organized Under Laws of
|
American Axle & Manufacturing Holdings, Inc.
|
Delaware
|
American Axle & Manufacturing, Inc.
|
Delaware
|
Colfor Manufacturing, Inc.
|
Delaware
|
MSP Industries Corporation
|
Michigan
|
AccuGear, Inc.
|
Delaware
|
Oxford Forge, Inc.
|
Delaware
|
Auburn Hills Manufacturing, Inc.
|
Delaware
|
AAM Travel Services, LLC
|
Michigan
|
Rochester Manufacturing, LLC
|
Indiana
|
AAM International Holdings, Inc.
|
Delaware
|
AAM Comércio e Participações Ltda.
|
Brazil
|
AAM do Brasil Ltda.
|
Brazil
|
Changshu AAM Automotive Driveline High Technology Manufacturing Co., Ltd.
|
China
|
American Axle & Manufacturing Korea, Inc.
|
Korea
|
AAM India Manufacturing Corporation Private Limited
|
India
|
AAM Poland Sp. z o. o.
|
Poland
|
Albion Automotive (Holdings) Ltd.
|
Scotland
|
Albion Automotive Limited
|
Scotland
|
AAM Germany GmbH
|
Germany
|
American Axle & Manufacturing (Thailand) Co., Ltd.
|
Thailand
|
AAM Luxembourg S.á r.l.
|
Luxembourg
|
AAM International S.á r.l.
|
Luxembourg
|
e-AAM Driveline Systems AB
|
Sweden
|
AAM Investment Management (Shanghai) Co., Ltd.
|
China
|
AAM Commercial & Trading (Shanghai) Co., Ltd.
|
China
|
USM Mexico Manufacturing, LLC
|
Delaware
|
USM Holdings, LLC II
|
Michigan
|
USM Holdings, LLC
|
Michigan
|
AAM Maquiladora Mexico S. de R.L. de C.V.
|
Mexico
|
AAM Mexico Holdings LLC
|
Delaware
|
American Axle & Manufacturing de Mexico Holdings S. de R.L. de C.V.
|
Mexico
|
American Axle & Manufacturing de Mexico S. de R.L. de C.V.
|
Mexico
|
Metaldyne Performance Group, Inc.
|
Delaware
|
MPG Holdco I Inc.
|
Delaware
|
ASP Grede Intermediate Holdings LLC
|
Delaware
|
ASP Grede AcquisitionCo LLC
|
Delaware
|
GSC RIII - Grede LLC
|
Delaware
|
Grede Holdings LLC
|
Delaware
|
Grede II LLC
|
Delaware
|
Grede Machining LLC
|
Delaware
|
Citation Lost Foam Patterns LLC
|
Delaware
|
Grede Wisconsin Subsidiaries LLC
|
Wisconsin
|
Grede Omaha LLC
|
Delaware
|
Grede Radford LLC
|
Delaware
|
Citation Camden Casting Center LLC
|
Tennessee
|
Skokie Castings LLC
|
Illinois
|
Novocast, S. de R. L. de C.V.
|
Mexico
|
Transformaciones Especializadas NC, S.A. de C.V.
|
Mexico
|
Brillion Iron Works, Inc.
|
Delaware
|
Grede LLC
|
Delaware
|
Novogredetek Holdings, S. de. R.L. de C.V.
|
Mexico
|
Shop IV Subsidiary Investment (Grede), LLC
|
Delaware
|
ASP MD Holdings, Inc.
|
Delaware
|
ASP MD Intermediate Holdings, Inc.
|
Delaware
|
ASP MD Intermediate Holdings II, Inc.
|
Delaware
|
MD Investors Corporation
|
Delaware
|
Metaldyne, LLC
|
Delaware
|
Metaldyne SinterForged Products, LLC
|
Delaware
|
Metaldyne BSM, LLC
|
Delaware
|
Metaldyne Sintered Ridgway, LLC
|
Delaware
|
Metaldyne M&A Bluffton, LLC
|
Delaware
|
Metaldyne Powertrain Components, Inc.
|
Delaware
|
Gear Design and Manufacturing, LLC
|
Delaware
|
Punchcraft Machining and Tooling, LLC
|
Delaware
|
Metaldyne Tubular Components, LLC
|
Delaware
|
Metaldyne Japan Corporation
|
Japan
|
MetaldyneLux S.à.r.l.
|
Luxembourg
|
MetaldyneLux Holding S.à.r.l.
|
Luxembourg
|
Metaldyne Europe S.a r.l.
|
Luxembourg
|
Metaldyne Engine Holdings, S.L.U.
|
Spain
|
Metaldyne International Spain, S.L.U.
|
Spain
|
Metaldyne Sintered Components España, S.L.U.
|
Spain
|
Metaldyne International France SAS
|
France
|
Metaldyne GmbH
|
Germany
|
H+B Hyprotec Technologie Verwaltungs GmbH
|
Germany
|
Metaldyne Zell Verwaltungs GmbH
|
Germany
|
Metaldyne International (UK) Ltd
|
United Kingdom
|
Metaldyne International Deutschland GmbH
|
Germany
|
Metaldyne Nürnberg GmbH
|
Germany
|
Metaldyne Oslavany spol. s.r.o.
|
Czech Republic
|
Metaldyne Grundstrücks GbR
|
Germany
|
Metaldyne Componentes Automotivos do Brasil Ltda.
|
Brazil
|
Metaldyne Netherlands Sintered Holdings B.V.
|
Netherlands
|
Metaldyne Powertrain Mexico, S. de R.L. de C.V.
|
Mexico
|
MPG México, S. de R.L. de C.V.
|
Mexico
|
Metaldyne Sintered Components Services, S. de R.L. de C.V.
|
Mexico
|
Metaldyne Sintered Components Mexico, S. de R.L. de C.V.
|
Mexico
|
Metaldyne Drivetrain Mexico, S. de R.L. de C.V.
|
Mexico
|
Metaldyne Forged Products, S. de R.L. de C.V.
|
Mexico
|
Holzer Limited
|
United Kingdom
|
Metaldyne Korea Limited
|
Korea
|
Metaldyne Hong Kong Limited
|
Hong Kong
|
Metaldyne Mauritius Limited
|
Mauritius
|
Metaldyne Industries Limited
|
India
|
Metaldyne (Suzhou) Automotive Components Co., Ltd
|
China
|
ASP HHI Holdings Inc.
|
Delaware
|
ASP HHI Intermediate Holdings, Inc.
|
Delaware
|
ASP HHI Intermediate Holdings II, Inc.
|
Delaware
|
ASP HHI Acquisition Co., Inc.
|
Delaware
|
HHI Holdings, LLC
|
Delaware
|
Bearing Holdings, LLC
|
Delaware
|
Kyklos Holdings, LLC
|
Delaware
|
Kyklos Bearing International, LLC
|
Delaware
|
Forging Holdings, LLC
|
Delaware
|
Hephaestus Holdings, LLC
|
Delaware
|
HHI FormTech Holdings LLC
|
Delaware
|
HHI FormTech, LLC
|
Delaware
|
HHI Forging, LLC
|
Delaware
|
Jernberg Holdings, LLC
|
Delaware
|
Jernberg Industries, LLC
|
Delaware
|
Impact Forge Holdings, LLC
|
Delaware
|
Impact Forge Group, LLC
|
Delaware
|
HHI Funding II, LLC
|
Delaware
|
Gearing Holdings, LLC
|
Delaware
|
Cloyes Gear Holdings, LLC
|
Delaware
|
Cloyes Gear and Products, Inc.
|
Ohio
|
The Mesh Company, LLC.
|
Arkansas
|
HDM Products Inc.
|
Delaware
|
Cloyes Acquisition Company
|
Delaware
|
Cloyes Dynagear Mexicana S. de R.L. de C.V.
|
Mexico
|
|
|
|
|
|
/s/ David C. Dauch
|
|
|
/s/ Christopher J. May
|
|
David C. Dauch
|
|
|
Christopher J. May
|
|
Chairman of the Board &
|
|
|
Vice President &
|
|
Chief Executive Officer
|
|
|
Chief Financial Officer
|
|
February 16, 2018
|
|
|
February 16, 2018
|
|