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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,
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Detroit,
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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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Trading Symbol(s)
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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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AXL
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New York Stock Exchange
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Page Number
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Part I
|
Item 1.
|
Business
|
•
|
AAM received the 2018 GM Supplier of the Year Award, which is awarded to suppliers that consistently exceed GM's expectations, create outstanding value or bring new innovations to GM. This was the third consecutive year that we received this award.
|
•
|
We also received Ford's World Excellence Award for Sustainability in 2019, which recognizes top-performing suppliers for their contributions to Ford's success.
|
•
|
During 2019, we launched nearly 50 programs across our business units, supporting a variety of customers including GM, FCA, Ford, and Mercedes-AMG. In 2020, we expect to launch approximately 15 new and replacement programs across our business units.
|
•
|
We continue to deliver operational excellence by leveraging our global standards, policies and best practices across all disciplines through the use of the AAM Operating System. We use this system to focus on customer satisfaction, lean production and efficient cost management, which allows us to improve quality, eliminate waste, and reduce lead time and total costs globally.
|
•
|
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.
|
•
|
Our business is vertically integrated to reduce cost and mitigate risk in the supply chain. Retention of our El Carmen, Mexico manufacturing facility as part of the Casting Sale, as well as our acquisitions of MPG and USM Mexico Manufacturing LLC (USM Mexico) in 2017 furthered our efforts to vertically integrate the supply chain and helped ensure continuity of supply for certain parts to our largest manufacturing facility.
|
•
|
AAM has an enhanced internal quality assurance system that drives continuous improvement to meet and exceed the growing expectations of our OEM customers.
|
•
|
In 2019, we had eleven facilities globally that were awarded the GM Supplier Quality Excellence Award for outstanding quality performance during the 2018 performance year. For our Changshu Manufacturing Facility in China, it was the fifth consecutive year that they earned this award.
|
•
|
Our Ramos, Mexico facility was awarded the FCA Outstanding Quality Award in 2019 for the 2018 performance year.
|
•
|
Several other facilities were recognized for outstanding quality performance by OEMs such as Daimler, Hino and Ashok Leyland.
|
•
|
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 advanced, sophisticated electronic controls; improved fuel efficiency; lower emissions; enhanced power density; improved safety, ride and handling performance; and enhanced reliability and durability.
|
•
|
Located at our Trollhättan Technical Center (TTC) in Sweden, our e-AAM subsidiary designs and commercializes battery electric and hybrid driveline systems designed to improve fuel efficiency, reduce CO2 emissions and provide AWD capability. To date, our e-AAM™ hybrid and electric driveline systems have been awarded multiple contracts. During 2018, e-AAM's front and rear eDrive units began production on the Jaguar I-Pace AWD Crossover, which was named the World Car of the Year and World
|
•
|
AAM's EcoTrac® Disconnecting AWD system (EcoTrac® ) 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 CO2 emissions compared to conventional AWD systems. In 2018, AAM launched the next generation of our EcoTrac® Disconnecting AWD system (EcoTrac® Gen II), which is smaller, lighter in weight and more efficient. AAM's EcoTrac® and EcoTrac® Gen II are featured on several global crossover platforms, including GM's Chevrolet Equinox and GMC Terrain, FCA's AWD Jeep Cherokee and its derivatives, as well as the Cadillac XT4 and the Ford Edge and Escape.
|
•
|
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. AAM's QuantumTM 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.
|
•
|
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. These forged axle tubes entered production on a program for a major OEM customer in 2019.
|
•
|
AAM's Advanced Technology Development Center (ATDC) at our Detroit campus, allows us to accelerate technological advancements. 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. Our Rochester Hills Technical Center (RHTC) works with the ATDC to test and validate new and advanced technologies focused on lightweighting, efficiency and vehicle performance using enhanced diagnostic and hardware assessment capabilities. Additionally, our hybrid and electric driveline center of excellence at our TTC is key to assisting our customers in meeting demand for technology advancement, as well as fuel efficiency and emission standards.
|
•
|
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 customers. New business launches in 2019 included key customers such as Ford, Mercedes-AMG and Geely Auto Group.
|
•
|
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.
|
•
|
As our customers design their products for global markets, they will continue to 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. In an effort to expand our global capabilities, we opened an updated and expanded manufacturing facility in Barcelona, Spain, and began construction on a new European headquarters and engineering center in Langen, Germany during 2019.
|
•
|
In 2019, we invested approximately $10 million in our joint venture (JV) that was formed in 2018 with Liuzhou Wuling Automobile Industry Co., Ltd. (Liuzhou AAM), a subsidiary of Guangxi Automotive Group Co., Ltd. This is in addition to our existing 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. Liuzhou AAM manufactures independent rear axles and driveheads to be used on crossovers, including SUVs, minivans and multi-purpose vehicles, and was awarded a customer contract in 2019 for its hybrid and electric driveline systems technology. HAAC supplies front and rear beam axles to several leading Chinese light truck manufacturers, including JAC and Foton (Beiqi Foton Motor Co., Ltd.). These joint ventures continue to be a strong advantage for building relationships with leading Chinese manufacturers.
|
Name
|
|
Age
|
|
Position
|
David C. Dauch
|
|
55
|
|
Chairman of the Board & Chief Executive Officer
|
Michael K. Simonte
|
|
56
|
|
President
|
David E. Barnes
|
|
61
|
|
Vice President & General Counsel
|
Gregory S. Deveson
|
|
58
|
|
President - Driveline
|
Terri M. Kemp
|
|
54
|
|
Vice President - Human Resources
|
Michael J. Lynch
|
|
55
|
|
Vice President - Finance & Controller
|
Christopher J. May
|
|
50
|
|
Vice President & Chief Financial Officer
|
Norman Willemse
|
|
63
|
|
President - Metal Forming
|
Item 1A.
|
Risk Factors
|
•
|
reduced flexibility in planning for, or reacting to, changes in our business, the competitive environment and the markets in which we operate, and to technological and other changes;
|
•
|
reduced access to capital and increasing borrowing costs generally or for any additional indebtedness to finance future operating and capital expenditures and for general corporate purposes;
|
•
|
lowered credit ratings;
|
•
|
reduced funds available for operations, capital expenditures and other activities; and
|
•
|
competitive disadvantages relative to other companies with lower debt levels.
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
North America
|
Europe
|
Asia
|
South America
|
||
United States
|
Czech Republic
|
Luxembourg
|
China
|
Brazil
|
|
Paris, AR (b)
|
Litchfield, MI (a)
|
Oslavany (b)
|
Steinfort (c)
|
Changshu (a)
|
Araucária (a)
|
Subiaco, AR (b)
|
Oxford, MI (b)
|
Zbysov (b)
|
Poland
|
Hefei (JV) (a)
|
Indaiatuba (b)
|
Bolingbrook, IL (b)
|
Rochester Hills, MI (c)
|
England
|
Świdnica (a)
|
Huzhou City (JV) (b)
|
|
Chicago, IL (b)
|
Royal Oak, MI (b)
|
Halifax (a)
|
Scotland
|
Shanghai (c)
|
|
Bluffton, IN (a)
|
Southfield, MI (b), (c)
|
France
|
Glasgow (a)
|
Suzhou (a), (b)
|
|
Columbus, IN (b)
|
Three Rivers, MI (a)
|
Decines (a)
|
Spain
|
India
|
|
Fort Wayne, IN (b)
|
Troy, MI (b)
|
Lyon (a)
|
Barcelona (a)
|
Chennai (a)
|
|
Fremont, IN (a)
|
Warren, MI (b)
|
Germany
|
Valencia (b)
|
Jamshedpur (JV) (a)
|
|
North Vernon, IN (b)
|
Malvern, OH (b)
|
Bad Homburg (c)
|
Sweden
|
Pune (a), (c)
|
|
Remington, IN (b)
|
Minerva, OH (b)
|
Dieburg (c)
|
Arjeplog (c)
|
Japan
|
|
Rochester, IN (a)
|
Twinsburg, OH (b)
|
Eisenach (a)
|
Trollhättan (c)
|
Tokyo (c)
|
|
Auburn Hills, MI (b)
|
Ridgway, PA (b)
|
Nurnberg (b)
|
|
South Korea
|
|
Detroit, MI (a), (c)
|
St. Mary's, PA (b)
|
Zell (b)
|
|
Pyeongtaek (a)
|
|
Fraser, MI (b)
|
Charleston, SC (a)
|
|
|
Thailand
|
|
Mexico
|
|
|
Rayong (a)
|
|
|
El Carmen (a)
|
Silao (a), (b)
|
|
|
|
|
Ramos Arizpe (a), (b)
|
|
|
|
|
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Part II
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
||||||||||
|
(in millions, except per share data)
|
|
||||||||||||||||||
Statement of operations data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
6,530.9
|
|
|
$
|
7,270.4
|
|
|
$
|
6,266.0
|
|
|
$
|
3,948.0
|
|
|
$
|
3,903.1
|
|
|
Gross profit
|
902.6
|
|
|
1,140.4
|
|
|
1,119.1
|
|
|
726.1
|
|
|
635.4
|
|
|
|||||
Selling, general and
|
|
|
|
|
|
|
|
|
|
|
||||||||||
administrative expenses
|
364.7
|
|
|
385.7
|
|
|
390.1
|
|
|
314.2
|
|
|
274.1
|
|
|
|||||
Amortization of intangible assets
|
95.4
|
|
|
99.4
|
|
|
75.3
|
|
|
5.0
|
|
|
3.2
|
|
|
|||||
Impairment charges
|
665.0
|
|
(a)
|
485.5
|
|
(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Restructuring and acquisition-related costs
|
57.8
|
|
|
78.9
|
|
|
110.7
|
|
|
26.2
|
|
|
—
|
|
|
|||||
Gain (loss) on sale of business
|
(21.3
|
)
|
(b)
|
15.5
|
|
(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Operating income (loss)
|
(301.6
|
)
|
|
106.4
|
|
|
543.0
|
|
|
380.7
|
|
|
358.1
|
|
|
|||||
Net interest expense
|
211.5
|
|
|
214.3
|
|
|
192.7
|
|
|
90.5
|
|
|
96.6
|
|
|
|||||
Gain on bargain purchase of business
|
10.8
|
|
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Gain on settlement of capital lease
|
—
|
|
|
15.6
|
|
(g)
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Net income (loss)
|
(484.1
|
)
|
(d)(h)(i)
|
(56.8
|
)
|
(h)(i)
|
337.5
|
|
(h)(i)
|
240.7
|
|
(h)
|
235.6
|
|
(i)
|
|||||
Net income (loss) attributable to AAM
|
(484.5
|
)
|
(d)(h)(i)
|
(57.5
|
)
|
(h)(i)
|
337.1
|
|
(h)(i)
|
240.7
|
|
(h)
|
235.6
|
|
(i)
|
|||||
Diluted earnings (loss) per share
|
$
|
(4.31
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
3.21
|
|
|
$
|
3.06
|
|
|
$
|
3.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance sheet data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
532.0
|
|
|
$
|
476.4
|
|
|
$
|
376.8
|
|
|
$
|
481.2
|
|
|
$
|
282.5
|
|
|
Total assets
|
6,644.6
|
|
|
7,510.7
|
|
|
7,882.8
|
|
|
3,422.3
|
|
(j)
|
3,176.9
|
|
(j)
|
|||||
Total long-term debt, net
|
3,612.3
|
|
|
3,686.8
|
|
|
3,969.3
|
|
|
1,400.9
|
|
|
1,375.7
|
|
|
|||||
Total AAM stockholders' equity
|
977.6
|
|
|
1,483.9
|
|
|
1,536.0
|
|
|
504.2
|
|
(j)
|
275.7
|
|
(j)
|
|||||
Dividends declared per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Statement of cash flows data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by operating
activities
|
$
|
559.6
|
|
|
$
|
771.5
|
|
|
$
|
647.0
|
|
|
$
|
407.6
|
|
|
$
|
377.6
|
|
|
Cash used in investing activities
|
(306.6
|
)
|
|
(478.2
|
)
|
|
(1,378.1
|
)
|
|
(227.7
|
)
|
|
(188.1
|
)
|
|
|||||
Cash provided by (used in) financing
activities
|
(200.0
|
)
|
|
(184.5
|
)
|
|
615.6
|
|
|
18.4
|
|
|
(143.6
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
$
|
536.9
|
|
|
$
|
528.8
|
|
|
$
|
428.5
|
|
|
$
|
201.8
|
|
|
$
|
198.4
|
|
|
Capital expenditures
|
433.3
|
|
|
524.7
|
|
|
477.7
|
|
|
223.0
|
|
|
193.5
|
|
|
|||||
Proceeds from sale of business, net
|
141.2
|
|
(b)
|
47.1
|
|
(f)
|
5.9
|
|
|
—
|
|
|
—
|
|
|
|||||
Acquisition of business, net of cash acquired
|
9.4
|
|
|
1.3
|
|
|
895.5
|
|
|
5.6
|
|
|
—
|
|
|
|||||
Purchase buyouts of leased equipment
|
0.9
|
|
|
0.5
|
|
|
13.3
|
|
|
4.6
|
|
|
—
|
|
|
(a)
|
In 2019, we recorded a charge of $225 million to reduce the carrying value of our U.S. Casting operations to fair value less cost to sell, and a goodwill impairment charge of $440 million associated with the annual goodwill impairment test for our Metal Forming segment.
|
(b)
|
In 2019, we completed the sale of our U.S. Casting operations for $245 million, consisting of $185 million in cash, of which we received net proceeds of $141.2 million subsequent to certain customary closing adjustments, and a $60 million deferred payment obligation. As a result of the sale, we recorded a loss of $21.3 million.
|
(c)
|
In 2019, we recognized a gain on bargain purchase of $10.8 million associated with the acquisition of certain operations of Mitec Automotive AG.
|
(d)
|
In 2019, we offered a voluntary one-time lump sum payment option to certain eligible terminated vested participants in our U.S. pension plans that, if accepted, would settle our pension obligations to them. As a result of this settlement, we remeasured the assets and liabilities of our U.S. pension plans, which resulted in a non-cash charge of approximately $7.7 million, net of tax, related to the accelerated recognition of certain deferred losses.
|
(e)
|
We recorded a goodwill impairment charge in 2018 associated with the annual goodwill impairment test for our Casting and former Powertrain segments.
|
(f)
|
In 2018, we completed the sale of the aftermarket business associated with our former Powertrain segment for approximately $50 million, of which we received net proceeds of $47.1 million. As a result of the sale, we recorded a $15.5 million gain.
|
(g)
|
In 2018, we reached a settlement agreement related to a capital lease obligation that we had recognized as a result of the acquisition of MPG. This settlement resulted in a gain of $15.6 million, including accrued interest.
|
(h)
|
For 2019, these amounts include impairment charges of $617.8 million, net of tax, integration related and other charges of $14.2 million, net of tax, severance costs of $15.3 million, net of tax, and implementation costs related to restructuring of $16.1 million, net of tax. For 2018, these amounts include goodwill impairment charges of $400.3 million, net of tax, acquisition and integration related charges of $27.5 million, net of tax, asset impairment and plant closure costs of $25.7 million, net of tax, and implementation costs, including professional expenses, relating to restructuring of $9.2 million, net of tax. 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.
|
(i)
|
Includes charges of $6.6 million, net of tax, in 2019, $15.3 million, net of tax, in 2018, $2.3 million, net of tax, in 2017 and $0.5 million, net of tax, in 2015 related to debt refinancing and redemption costs.
|
(j)
|
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, in which we changed our method of accounting from capitalizing indirect inventory and recording as expense when the inventory was consumed, to expensing indirect inventory at the time of purchase. This change in accounting principle was effective in the second quarter of 2017.
|
•
|
Driveline products consist primarily of front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles (SUVs), crossover vehicles, passenger cars and commercial vehicles;
|
•
|
Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears and assemblies, connecting rods and variable valve timing products for Original Equipment Manufacturers and Tier 1 automotive suppliers; and
|
•
|
Prior to the Casting Sale, the Casting segment produced both thin wall castings and high strength ductile iron castings, as well as transmission pump bodies, steering knuckles, control arms, brake anchors and calipers, and ball joint housings for the global light vehicle, commercial and industrial markets.
|
|
|
Year Ended December 31, 2019
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Total
|
||||||||
Sales
|
|
$
|
4,550.2
|
|
|
$
|
1,845.2
|
|
|
$
|
669.2
|
|
|
$
|
7,064.6
|
|
Less: Intersegment sales
|
|
100.5
|
|
|
391.7
|
|
|
41.5
|
|
|
533.7
|
|
||||
Net external sales
|
|
$
|
4,449.7
|
|
|
$
|
1,453.5
|
|
|
$
|
627.7
|
|
|
$
|
6,530.9
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment adjusted EBITDA
|
|
$
|
610.8
|
|
|
$
|
316.5
|
|
|
$
|
43.0
|
|
|
$
|
970.3
|
|
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Total
|
||||||||
Sales
|
|
$
|
5,001.2
|
|
|
$
|
2,046.0
|
|
|
$
|
780.6
|
|
|
$
|
7,827.8
|
|
Less: Intersegment sales
|
|
89.8
|
|
|
428.3
|
|
|
39.3
|
|
|
557.4
|
|
||||
Net external sales
|
|
$
|
4,911.4
|
|
|
$
|
1,617.7
|
|
|
$
|
741.3
|
|
|
$
|
7,270.4
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment adjusted EBITDA
|
|
$
|
754.5
|
|
|
$
|
376.5
|
|
|
$
|
52.9
|
|
|
$
|
1,183.9
|
|
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Total
|
||||||||
Sales
|
|
$
|
4,567.8
|
|
|
$
|
1,634.9
|
|
|
$
|
576.1
|
|
|
$
|
6,778.8
|
|
Less: Intersegment sales
|
|
65.9
|
|
|
417.7
|
|
|
29.2
|
|
|
512.8
|
|
||||
Net external sales
|
|
$
|
4,501.9
|
|
|
$
|
1,217.2
|
|
|
$
|
546.9
|
|
|
$
|
6,266.0
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment adjusted EBITDA
|
|
$
|
762.3
|
|
|
$
|
305.7
|
|
|
$
|
34.7
|
|
|
$
|
1,102.7
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net income (loss)
|
$
|
(484.1
|
)
|
|
$
|
(56.8
|
)
|
|
$
|
337.5
|
|
Interest expense
|
217.3
|
|
|
216.3
|
|
|
195.6
|
|
|||
Income tax expense (benefit)
|
(48.9
|
)
|
|
(57.1
|
)
|
|
2.5
|
|
|||
Depreciation and amortization
|
536.9
|
|
|
528.8
|
|
|
428.5
|
|
|||
EBITDA
|
$
|
221.2
|
|
|
$
|
631.2
|
|
|
$
|
964.1
|
|
Restructuring and acquisition-related costs
|
57.8
|
|
|
78.9
|
|
|
110.7
|
|
|||
Debt refinancing and redemption costs
|
8.4
|
|
|
19.4
|
|
|
3.5
|
|
|||
(Gain) loss on sale of business
|
21.3
|
|
|
(15.5
|
)
|
|
—
|
|
|||
Impairment charges
|
665.0
|
|
|
485.5
|
|
|
—
|
|
|||
Pension settlement
|
9.8
|
|
|
—
|
|
|
3.2
|
|
|||
Non-recurring items:
|
|
|
|
|
|
||||||
Gain on bargain purchase of business
|
(10.8
|
)
|
|
—
|
|
|
|
||||
Gain on settlement of capital lease
|
—
|
|
|
(15.6
|
)
|
|
—
|
|
|||
Acquisition-related fair value inventory adjustment
|
—
|
|
|
—
|
|
|
24.9
|
|
|||
Impact of change in accounting principle
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
|||
Other non-recurring items
|
(2.4
|
)
|
|
—
|
|
|
—
|
|
|||
Total Segment Adjusted EBITDA
|
$
|
970.3
|
|
|
$
|
1,183.9
|
|
|
$
|
1,102.7
|
|
|
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
|
|
Payments due by period
|
||||||||||||||||||
|
Total
|
|
<1yr
|
|
1-3 yrs
|
|
3-5 yrs
|
|
>5 yrs
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Current and long-term debt
|
$
|
3,692.2
|
|
|
$
|
53.2
|
|
|
$
|
548.4
|
|
|
$
|
1,490.6
|
|
|
$
|
1,600.0
|
|
Interest obligations
|
1,020.0
|
|
|
205.8
|
|
|
388.6
|
|
|
309.3
|
|
|
116.3
|
|
|||||
Finance lease obligations
|
7.8
|
|
|
3.2
|
|
|
4.4
|
|
|
0.2
|
|
|
—
|
|
|||||
Operating leases (1)
|
151.4
|
|
|
28.2
|
|
|
39.8
|
|
|
24.1
|
|
|
59.3
|
|
|||||
Purchase obligations (2)
|
131.9
|
|
|
118.7
|
|
|
13.2
|
|
|
—
|
|
|
—
|
|
|||||
Other long-term liabilities (3)
|
568.7
|
|
|
57.9
|
|
|
111.0
|
|
|
111.4
|
|
|
288.4
|
|
|||||
Total
|
$
|
5,572.0
|
|
|
$
|
467.0
|
|
|
$
|
1,105.4
|
|
|
$
|
1,935.6
|
|
|
$
|
2,064.0
|
|
(1)
|
Operating leases include all lease payments through the end of the contractual lease terms, which includes elections for repurchase options which we are reasonably certain to exercise. 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 2029.
|
•
|
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.
|
|
|
|
Expected
|
||||
|
Discount
|
|
Return on
|
||||
|
Rate
|
|
Assets
|
||||
|
(in millions)
|
||||||
Decline in funded status
|
$
|
50.9
|
|
|
N/A
|
|
|
Increase in 2019 expense
|
$
|
0.8
|
|
|
$
|
3.0
|
|
Forward-Looking Statements
|
•
|
reduced purchases of our products by General Motors Company (GM), FCA US LLC (FCA), or other customers;
|
•
|
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;
|
•
|
reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM and FCA);
|
•
|
risks inherent in our global operations (including tariffs and the potential consequences thereof to us, our suppliers, and our customers and their suppliers, adverse changes in trade agreements, such as NAFTA or USMCA, immigration policies, political stability, taxes and other law changes, currency rate fluctuations, and potential disruptions of production and supply, including those as a result of public health crises, such as pandemic or epidemic illness, or otherwise);
|
•
|
a significant disruption in operations at one or more of our key manufacturing facilities;
|
•
|
negative or unexpected tax consequences;
|
•
|
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;
|
•
|
global economic conditions;
|
•
|
an impairment of our goodwill, other intangible assets, or long-lived assets if our business or market conditions indicate that the carrying values of those assets exceed their fair values;
|
•
|
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 or our customers' and suppliers' ability to successfully launch new product programs on a timely basis;
|
•
|
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;
|
•
|
supply shortages or price increases in raw material and/or freight, utilities or other operating supplies for us or our customers as a result of natural disasters or otherwise;
|
•
|
our ability to achieve the level of cost reductions required to sustain global cost competitiveness;
|
•
|
our ability to realize the expected revenues from our new and incremental business backlog;
|
•
|
price volatility in, or reduced availability of, fuel;
|
•
|
our ability to protect our intellectual property and successfully defend against assertions made against us;
|
•
|
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;
|
•
|
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;
|
•
|
changes in liabilities arising from pension and other postretirement benefit obligations;
|
•
|
our ability to attract and retain key associates; and
|
•
|
other unanticipated events and conditions that may hinder our ability to compete.
|
Item 8.
|
Financial Statements and Supplementary Data
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in millions, except per share data)
|
||||||||||
|
|
|
|
|
|
||||||
Net sales
|
$
|
6,530.9
|
|
|
$
|
7,270.4
|
|
|
$
|
6,266.0
|
|
|
|
|
|
|
|
||||||
Cost of goods sold
|
5,628.3
|
|
|
6,130.0
|
|
|
5,146.9
|
|
|||
|
|
|
|
|
|
||||||
Gross profit
|
902.6
|
|
|
1,140.4
|
|
|
1,119.1
|
|
|||
|
|
|
|
|
|
||||||
Selling, general and administrative expenses
|
364.7
|
|
|
385.7
|
|
|
390.1
|
|
|||
|
|
|
|
|
|
||||||
Amortization of intangible assets
|
95.4
|
|
|
99.4
|
|
|
75.3
|
|
|||
|
|
|
|
|
|
||||||
Impairment charges (Note 2 and Note 5)
|
665.0
|
|
|
485.5
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Restructuring and acquisition-related costs
|
57.8
|
|
|
78.9
|
|
|
110.7
|
|
|||
|
|
|
|
|
|
||||||
(Gain) loss on sale of business (Note 2)
|
21.3
|
|
|
(15.5
|
)
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Operating income (loss)
|
(301.6
|
)
|
|
106.4
|
|
|
543.0
|
|
|||
|
|
|
|
|
|
||||||
Interest expense
|
(217.3
|
)
|
|
(216.3
|
)
|
|
(195.6
|
)
|
|||
|
|
|
|
|
|
||||||
Interest income
|
5.8
|
|
|
2.0
|
|
|
2.9
|
|
|||
|
|
|
|
|
|
||||||
Other income (expense)
|
|
|
|
|
|
||||||
Debt refinancing and redemption costs
|
(8.4
|
)
|
|
(19.4
|
)
|
|
(3.5
|
)
|
|||
Gain on bargain purchase of business
|
10.8
|
|
|
—
|
|
|
—
|
|
|||
Gain on settlement of capital lease
|
—
|
|
|
15.6
|
|
|
—
|
|
|||
Pension settlement charge
|
(9.8
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(12.5
|
)
|
|
(2.2
|
)
|
|
(6.8
|
)
|
|||
|
|
|
|
|
|
||||||
Income (loss) before income taxes
|
(533.0
|
)
|
|
(113.9
|
)
|
|
340.0
|
|
|||
|
|
|
|
|
|
||||||
Income tax expense (benefit)
|
(48.9
|
)
|
|
(57.1
|
)
|
|
2.5
|
|
|||
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(484.1
|
)
|
|
$
|
(56.8
|
)
|
|
$
|
337.5
|
|
|
|
|
|
|
|
||||||
Net income attributable to noncontrolling interests
|
(0.4
|
)
|
|
(0.7
|
)
|
|
(0.4
|
)
|
|||
|
|
|
|
|
|
||||||
Net income (loss) attributable to AAM
|
$
|
(484.5
|
)
|
|
$
|
(57.5
|
)
|
|
$
|
337.1
|
|
|
|
|
|
|
|
||||||
Basic earnings (loss) per share
|
$
|
(4.31
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
3.22
|
|
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share
|
$
|
(4.31
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
3.21
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in millions)
|
||||||||||
Net income (loss)
|
$
|
(484.1
|
)
|
|
$
|
(56.8
|
)
|
|
$
|
337.5
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss)
|
|
|
|
|
|
||||||
Defined benefit plans, net of $3.0 million, $(9.8) million and $3.4 million of tax in 2019, 2018 and 2017, respectively
|
(18.3
|
)
|
|
38.1
|
|
|
(8.5
|
)
|
|||
Foreign currency translation adjustments
|
(4.6
|
)
|
|
(62.5
|
)
|
|
88.3
|
|
|||
Changes in cash flow hedges, net of tax of $6.1 million, $0.5 million and $(0.2) million in 2019, 2018 and 2017, respectively
|
(14.6
|
)
|
|
5.5
|
|
|
17.1
|
|
|||
Other comprehensive income (loss)
|
(37.5
|
)
|
|
(18.9
|
)
|
|
96.9
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive income (loss)
|
$
|
(521.6
|
)
|
|
$
|
(75.7
|
)
|
|
$
|
434.4
|
|
|
|
|
|
|
|
||||||
Net income attributable to noncontrolling interests
|
(0.4
|
)
|
|
(0.7
|
)
|
|
(0.4
|
)
|
|||
|
|
|
|
|
|
||||||
Comprehensive income (loss) attributable to AAM
|
$
|
(522.0
|
)
|
|
$
|
(76.4
|
)
|
|
$
|
434.0
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
||||
Assets
|
(in millions, except per share data)
|
||||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
532.0
|
|
|
$
|
476.4
|
|
Accounts receivable, net
|
815.4
|
|
|
966.5
|
|
||
Inventories, net
|
373.6
|
|
|
459.7
|
|
||
Prepaid expenses and other
|
136.8
|
|
|
127.2
|
|
||
Total current assets
|
1,857.8
|
|
|
2,029.8
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
2,358.4
|
|
|
2,514.4
|
|
||
Deferred income taxes
|
64.1
|
|
|
45.5
|
|
||
Goodwill
|
699.1
|
|
|
1,141.8
|
|
||
Other intangible assets, net
|
864.5
|
|
|
1,111.1
|
|
||
GM postretirement cost sharing asset
|
223.3
|
|
|
219.4
|
|
||
Other assets and deferred charges
|
577.4
|
|
|
448.7
|
|
||
Total assets
|
$
|
6,644.6
|
|
|
$
|
7,510.7
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current portion of long-term debt
|
$
|
28.7
|
|
|
$
|
121.6
|
|
Accounts payable
|
623.5
|
|
|
840.2
|
|
||
Accrued compensation and benefits
|
154.4
|
|
|
179.0
|
|
||
Deferred revenue
|
18.9
|
|
|
44.3
|
|
||
Accrued expenses and other
|
200.9
|
|
|
171.7
|
|
||
Total current liabilities
|
1,026.4
|
|
|
1,356.8
|
|
||
|
|
|
|
||||
Long-term debt, net
|
3,612.3
|
|
|
3,686.8
|
|
||
Deferred revenue
|
83.7
|
|
|
77.6
|
|
||
Deferred income taxes
|
19.6
|
|
|
92.6
|
|
||
Postretirement benefits and other long-term liabilities
|
922.2
|
|
|
810.6
|
|
||
Total liabilities
|
5,664.2
|
|
|
6,024.4
|
|
||
|
|
|
|
||||
Stockholders' equity
|
|
|
|
||||
Series A junior participating preferred stock, par value $0.01 per share;
|
|
|
|
||||
0.1 million shares authorized; no shares outstanding in 2019 or 2018
|
—
|
|
|
—
|
|
||
Preferred stock, par value $0.01 per share; 10.0 million shares
|
|
|
|
||||
authorized; no shares outstanding in 2019 or 2018
|
—
|
|
|
—
|
|
||
Series common stock, par value $0.01 per share; 40.0 million
|
|
|
|
||||
shares authorized; no shares outstanding in 2019 or 2018
|
—
|
|
|
—
|
|
||
Common stock, par value $0.01 per share; 150.0 million shares authorized;
|
|
|
|
||||
120.2 million and 118.9 million shares issued as of December 31, 2019 and December 31, 2018, respectively
|
1.2
|
|
|
1.2
|
|
||
Paid-in capital
|
1,313.9
|
|
|
1,292.6
|
|
||
Retained earnings
|
248.6
|
|
|
703.5
|
|
||
Treasury stock at cost, 7.6 million shares in 2019 and 7.2 million shares in 2018
|
(209.3
|
)
|
|
(201.8
|
)
|
||
Accumulated other comprehensive loss
|
|
|
|
||||
Defined benefit plans, net of tax
|
(259.9
|
)
|
|
(213.9
|
)
|
||
Foreign currency translation adjustments
|
(101.2
|
)
|
|
(96.6
|
)
|
||
Unrecognized loss on cash flow hedges, net of tax
|
(15.7
|
)
|
|
(1.1
|
)
|
||
Total AAM stockholders' equity
|
977.6
|
|
|
1,483.9
|
|
||
Noncontrolling interests in subsidiaries
|
2.8
|
|
|
2.4
|
|
||
Total stockholders' equity
|
980.4
|
|
|
1,486.3
|
|
||
Total liabilities and stockholders' equity
|
$
|
6,644.6
|
|
|
$
|
7,510.7
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in millions)
|
||||||||||
Operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(484.1
|
)
|
|
$
|
(56.8
|
)
|
|
$
|
337.5
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities
|
|
|
|
|
|
||||||
Depreciation and amortization
|
536.9
|
|
|
528.8
|
|
|
428.5
|
|
|||
Impairment charges
|
667.9
|
|
|
515.5
|
|
|
1.5
|
|
|||
Deferred income taxes
|
(94.6
|
)
|
|
(35.0
|
)
|
|
(154.2
|
)
|
|||
Stock-based compensation
|
22.4
|
|
|
27.9
|
|
|
43.4
|
|
|||
Pensions and other postretirement benefits, net of contributions
|
(8.8
|
)
|
|
(9.9
|
)
|
|
(6.0
|
)
|
|||
(Gain) loss on sale or acquisition of business
|
10.5
|
|
|
(15.5
|
)
|
|
—
|
|
|||
(Gain) loss on disposal of property, plant and equipment, net
|
4.1
|
|
|
(3.2
|
)
|
|
1.6
|
|
|||
Debt refinancing and redemption costs and (gain) on settlement of capital lease
|
8.4
|
|
|
4.0
|
|
|
3.5
|
|
|||
Changes in operating assets and liabilities, net of amounts acquired or disposed
|
|
|
|
|
|
||||||
Accounts receivable
|
63.9
|
|
|
56.1
|
|
|
(44.9
|
)
|
|||
Inventories
|
56.1
|
|
|
(83.1
|
)
|
|
2.5
|
|
|||
Accounts payable and accrued expenses
|
(97.7
|
)
|
|
7.5
|
|
|
(12.6
|
)
|
|||
Deferred revenue
|
(17.9
|
)
|
|
10.7
|
|
|
14.8
|
|
|||
Other assets and liabilities
|
(107.5
|
)
|
|
(175.5
|
)
|
|
31.4
|
|
|||
Net cash provided by operating activities
|
559.6
|
|
|
771.5
|
|
|
647.0
|
|
|||
|
|
|
|
|
|
||||||
Investing activities
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment
|
(433.3
|
)
|
|
(524.7
|
)
|
|
(477.7
|
)
|
|||
Proceeds from sale of property, plant and equipment
|
5.0
|
|
|
4.9
|
|
|
2.5
|
|
|||
Purchase buyouts of leased equipment
|
(0.9
|
)
|
|
(0.5
|
)
|
|
(13.3
|
)
|
|||
Proceeds from sale of business, net
|
141.2
|
|
|
47.1
|
|
|
5.9
|
|
|||
Acquisition of business, net of cash acquired
|
(9.4
|
)
|
|
(1.3
|
)
|
|
(895.5
|
)
|
|||
Investment in affiliates
|
(9.2
|
)
|
|
(3.7
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
(306.6
|
)
|
|
(478.2
|
)
|
|
(1,378.1
|
)
|
|||
|
|
|
|
|
|
||||||
Financing activities
|
|
|
|
|
|
||||||
Net short-term proceeds from credit facilities
|
—
|
|
|
—
|
|
|
4.4
|
|
|||
Proceeds from issuance of long-term debt
|
356.3
|
|
|
509.6
|
|
|
2,862.7
|
|
|||
Payments of long-term debt, finance lease obligations and other
|
(545.5
|
)
|
|
(681.2
|
)
|
|
(2,154.4
|
)
|
|||
Debt issuance costs
|
(3.3
|
)
|
|
(6.9
|
)
|
|
(91.0
|
)
|
|||
Purchase of noncontrolling interest
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
|||
Employee stock option exercises
|
—
|
|
|
—
|
|
|
0.9
|
|
|||
Purchase of treasury stock
|
(7.5
|
)
|
|
(3.7
|
)
|
|
(7.0
|
)
|
|||
Net cash provided by (used in) financing activities
|
(200.0
|
)
|
|
(184.5
|
)
|
|
615.6
|
|
|||
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash
|
0.1
|
|
|
(6.7
|
)
|
|
11.1
|
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
53.1
|
|
|
102.1
|
|
|
(104.4
|
)
|
|||
|
|
|
|
|
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
478.9
|
|
|
376.8
|
|
|
481.2
|
|
|||
|
|
|
|
|
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
$
|
532.0
|
|
|
$
|
478.9
|
|
|
$
|
376.8
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information
|
|
|
|
|
|
||||||
Interest paid
|
$
|
205.4
|
|
|
$
|
199.7
|
|
|
$
|
182.7
|
|
Income taxes paid, net
|
$
|
57.1
|
|
|
$
|
46.0
|
|
|
$
|
31.9
|
|
Non-cash investing activities: Debt security received for sale of U.S. Casting (Note 2)
|
$
|
60.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-cash investing activities: AAM common shares issued for acquisition of MPG
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
576.7
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Common Stock
|
|
|
|
Accumulated Other
|
Noncontrolling
|
||||||||||||||
|
Shares
|
Par
|
Paid-in
|
Retained
|
Treasury
|
Comprehensive
|
Interest
|
|||||||||||||
|
Outstanding
|
Value
|
Capital
|
Earnings
|
Stock
|
Loss
|
in Subsidiaries
|
|||||||||||||
|
(in millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Balance at January 1, 2017
|
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
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss)
|
|
|
|
(57.5
|
)
|
|
|
0.7
|
|
|||||||||||
Changes in cash flow hedges
|
|
|
|
|
|
5.5
|
|
|
||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
(62.5
|
)
|
|
||||||||||||
Defined benefit plans, net
|
|
|
|
|
|
38.1
|
|
|
||||||||||||
Purchase of non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
(2.3
|
)
|
||||||||
Exercise of stock options and vesting of restricted stock units and performance shares
|
0.7
|
|
|
0.1
|
|
|
|
|
|
|||||||||||
Stock-based compensation
|
|
|
27.9
|
|
|
|
|
|
||||||||||||
Purchase of treasury stock
|
(0.3
|
)
|
|
|
|
(3.7
|
)
|
|
|
|||||||||||
Balance at December 31, 2018
|
111.7
|
|
$
|
1.2
|
|
$
|
1,292.6
|
|
$
|
703.5
|
|
$
|
(201.8
|
)
|
$
|
(311.6
|
)
|
$
|
2.4
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss)
|
|
|
|
(484.5
|
)
|
|
|
0.4
|
|
|||||||||||
Changes in cash flow hedges
|
|
|
|
|
|
(14.6
|
)
|
|
||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
(4.6
|
)
|
|
||||||||||||
Defined benefit plans, net
|
|
|
|
|
|
(18.3
|
)
|
|
||||||||||||
Vesting of restricted stock units and performance shares
|
1.3
|
|
|
|
|
|
|
|
|
|||||||||||
Stock-based compensation
|
|
|
21.3
|
|
|
|
|
|
||||||||||||
Modified-retrospective application of ASU 2016-02
|
|
|
|
|
|
|
1.9
|
|
|
|
|
|
|
|
||||||
Adoption of ASU 2018-02
|
|
|
|
|
|
|
27.7
|
|
|
|
(27.7
|
)
|
|
|
||||||
Purchase of treasury stock
|
(0.4
|
)
|
|
|
|
(7.5
|
)
|
|
|
|||||||||||
Balance at December 31, 2019
|
112.6
|
|
$
|
1.2
|
|
$
|
1,313.9
|
|
$
|
248.6
|
|
$
|
(209.3
|
)
|
$
|
(376.8
|
)
|
$
|
2.8
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Raw materials and work-in-progress
|
$
|
310.4
|
|
|
$
|
375.1
|
|
Finished goods
|
83.7
|
|
|
99.0
|
|
||
Gross inventories
|
394.1
|
|
|
474.1
|
|
||
Inventory valuation reserves
|
(20.5
|
)
|
|
(14.4
|
)
|
||
Inventories, net
|
$
|
373.6
|
|
|
$
|
459.7
|
|
|
Estimated
|
|
December 31,
|
||||||
|
Useful Lives
|
|
2019
|
|
2018
|
||||
|
(years)
|
|
(in millions)
|
||||||
Land
|
Indefinite
|
|
$
|
45.1
|
|
|
$
|
53.6
|
|
Land improvements
|
10-15
|
|
24.4
|
|
|
22.0
|
|
||
Buildings and building improvements
|
15-40
|
|
512.7
|
|
|
501.5
|
|
||
Machinery and equipment
|
3-12
|
|
3,645.6
|
|
|
3,342.8
|
|
||
Construction in progress
|
|
|
219.5
|
|
|
511.1
|
|
||
|
|
|
4,447.3
|
|
|
4,431.0
|
|
||
Accumulated depreciation and amortization
|
|
|
(2,088.9
|
)
|
|
(1,916.6
|
)
|
||
Property, plant and equipment, net
|
|
|
$
|
2,358.4
|
|
|
$
|
2,514.4
|
|
|
|
||
Accounts receivable, net
|
$
|
84.9
|
|
Inventories
|
32.6
|
|
|
Prepaid expenses and other
|
2.1
|
|
|
Property, plant and equipment, net
|
191.8
|
|
|
Intangible assets, net
|
158.2
|
|
|
Other assets and deferred charges
|
81.7
|
|
|
Impairment of carrying value
|
(225.0
|
)
|
|
Total assets disposed
|
$
|
326.3
|
|
|
|
||
Accounts payable
|
$
|
71.7
|
|
Accrued compensation and benefits
|
6.9
|
|
|
Accrued expenses and other
|
4.5
|
|
|
Postretirement benefits and other long-term liabilities
|
20.1
|
|
|
Total liabilities disposed
|
$
|
103.2
|
|
|
|
|
|
Twelve Months Ended
|
||
|
|
December 31,
|
||
|
|
2019
|
||
|
|
(in millions)
|
||
|
|
|
||
Finance lease cost
|
|
|
||
Amortization of right-of-use assets
|
|
$
|
1.0
|
|
Interest on lease liabilities
|
|
0.3
|
|
|
Total finance lease cost
|
|
1.3
|
|
|
|
|
|
||
Operating lease cost
|
|
28.9
|
|
|
Short-term lease cost
|
|
5.9
|
|
|
Variable lease cost
|
|
7.2
|
|
|
|
|
|
||
Total lease cost
|
|
$
|
43.3
|
|
|
|
Twelve Months Ended
|
||
|
|
December 31,
|
||
|
|
2019
|
||
|
|
(in millions, except lease term and rate)
|
||
|
|
|
||
Cash paid for amounts included in measurement of lease liabilities
|
|
|
||
Operating cash flows from finance leases
|
|
$
|
0.3
|
|
Operating cash flows from operating leases
|
|
29.0
|
|
|
Financing cash flows from finance leases
|
|
1.0
|
|
|
|
|
|
||
Weighted-average remaining lease term - finance leases
|
|
2.8 years
|
|
|
Weighted-average remaining lease term - operating leases
|
|
9.2 years
|
|
|
|
|
|
||
Weighted-average discount rate - finance leases
|
|
5.1
|
%
|
|
Weighted-average discount rate - operating leases
|
|
6.1
|
%
|
|
|
Finance Leases
|
|
Operating Leases
|
||||
|
|
(in millions)
|
||||||
2020
|
|
$
|
3.2
|
|
|
$
|
28.2
|
|
2021
|
|
2.7
|
|
|
21.9
|
|
||
2022
|
|
1.7
|
|
|
17.9
|
|
||
2023
|
|
0.2
|
|
|
13.4
|
|
||
2024
|
|
—
|
|
|
10.7
|
|
||
Thereafter
|
|
—
|
|
|
59.3
|
|
||
Total future undiscounted minimum lease payments
|
|
7.8
|
|
|
151.4
|
|
||
Less: Impact of discounting
|
|
(0.5
|
)
|
|
(32.9
|
)
|
||
Total
|
|
$
|
7.3
|
|
|
$
|
118.5
|
|
|
|
Finance Leases
|
|
Operating Leases
|
||||
|
|
(in millions)
|
||||||
Property, plant and equipment, net
|
|
$
|
7.3
|
|
|
$
|
—
|
|
Other assets and deferred charges
|
|
—
|
|
|
118.5
|
|
||
Total
|
|
$
|
7.3
|
|
|
$
|
118.5
|
|
|
|
|
|
|
||||
Accrued expenses and other
|
|
$
|
3.3
|
|
|
$
|
21.8
|
|
Postretirement benefits and other long-term liabilities
|
|
4.0
|
|
|
96.7
|
|
||
Total
|
|
$
|
7.3
|
|
|
$
|
118.5
|
|
|
Severance Charges
|
|
Implementation Costs
|
|
Asset Impairment Charges
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Accrual at January 1, 2017
|
$
|
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
|
|
||||
Charges
|
2.5
|
|
|
11.7
|
|
|
30.0
|
|
|
44.2
|
|
||||
Cash utilization
|
(0.4
|
)
|
|
(10.1
|
)
|
|
—
|
|
|
(10.5
|
)
|
||||
Non-cash utilization
|
—
|
|
|
—
|
|
|
(30.0
|
)
|
|
(30.0
|
)
|
||||
Accrual at December 31, 2018
|
2.4
|
|
|
1.6
|
|
|
—
|
|
|
4.0
|
|
||||
Charges
|
19.4
|
|
|
20.4
|
|
|
—
|
|
|
39.8
|
|
||||
Cash utilization
|
(17.0
|
)
|
|
(14.6
|
)
|
|
—
|
|
|
(31.6
|
)
|
||||
Non-cash utilization
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Accrual at December 31, 2019
|
$
|
4.8
|
|
|
$
|
7.4
|
|
|
$
|
—
|
|
|
$
|
12.2
|
|
|
Acquisition-Related Costs
|
|
Severance Charges
|
|
Integration Expenses
|
|
Total
|
||||||||
|
|
|
|
|
|
||||||||||
2019 Charges
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
16.2
|
|
|
$
|
18.0
|
|
2018 Charges
|
1.2
|
|
|
0.5
|
|
|
33.0
|
|
|
34.7
|
|
||||
2017 Charges
|
40.7
|
|
|
7.2
|
|
|
45.4
|
|
|
93.3
|
|
|
Driveline
|
|
Metal Forming
|
|
Powertrain
|
|
Casting
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Balance as of January 1, 2018
|
$
|
211.1
|
|
|
$
|
558.9
|
|
|
$
|
478.8
|
|
|
$
|
405.5
|
|
|
$
|
1,654.3
|
|
Acquisition of MPG
|
—
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|||||
Acquisition of USM Mexico
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|||||
Impairment charge
|
—
|
|
|
—
|
|
|
(80.0
|
)
|
|
(405.5
|
)
|
|
(485.5
|
)
|
|||||
Sale of business
|
—
|
|
|
—
|
|
|
(15.1
|
)
|
|
—
|
|
|
(15.1
|
)
|
|||||
Foreign currency translation
|
(0.3
|
)
|
|
(7.4
|
)
|
|
(6.4
|
)
|
|
—
|
|
|
(14.1
|
)
|
|||||
Balance as of December 31, 2018
|
$
|
212.1
|
|
|
$
|
552.4
|
|
|
$
|
377.3
|
|
|
$
|
—
|
|
|
$
|
1,141.8
|
|
Reorganization
|
187.2
|
|
|
190.1
|
|
|
(377.3
|
)
|
|
—
|
|
|
—
|
|
|||||
Impairment charge
|
—
|
|
|
(440.0
|
)
|
|
—
|
|
|
—
|
|
|
(440.0
|
)
|
|||||
Foreign currency translation
|
(1.0
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|||||
Balance as of December 31, 2019
|
$
|
398.3
|
|
|
$
|
300.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
699.1
|
|
|
December 31,
|
|
December 31,
|
||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Capitalized computer software
|
$
|
45.8
|
|
|
$
|
(27.6
|
)
|
|
$
|
18.2
|
|
|
$
|
38.0
|
|
|
$
|
(20.1
|
)
|
|
$
|
17.9
|
|
Customer platforms
|
856.2
|
|
|
(174.4
|
)
|
|
681.8
|
|
|
952.2
|
|
|
(123.5
|
)
|
|
828.7
|
|
||||||
Customer relationships
|
53.0
|
|
|
(9.4
|
)
|
|
43.6
|
|
|
147.0
|
|
|
(16.5
|
)
|
|
130.5
|
|
||||||
Technology and other
|
156.0
|
|
|
(35.1
|
)
|
|
120.9
|
|
|
156.2
|
|
|
(22.2
|
)
|
|
134.0
|
|
||||||
Total
|
$
|
1,111.0
|
|
|
$
|
(246.5
|
)
|
|
$
|
864.5
|
|
|
$
|
1,293.4
|
|
|
$
|
(182.3
|
)
|
|
$
|
1,111.1
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Revolving credit facility
|
$
|
—
|
|
|
$
|
—
|
|
Term Loan A Facility
|
340.0
|
|
|
83.8
|
|
||
Term Loan B Facility
|
1,188.8
|
|
|
1,511.2
|
|
||
7.75% Notes due 2019
|
—
|
|
|
100.0
|
|
||
6.625% Notes due 2022
|
450.0
|
|
|
450.0
|
|
||
6.50% Notes due 2027
|
500.0
|
|
|
500.0
|
|
||
6.25% Notes due 2026
|
400.0
|
|
|
400.0
|
|
||
6.25% Notes due 2025
|
700.0
|
|
|
700.0
|
|
||
Foreign credit facilities and other
|
113.4
|
|
|
127.1
|
|
||
Capital lease obligations
|
—
|
|
|
3.4
|
|
||
Total debt
|
3,692.2
|
|
|
3,875.5
|
|
||
Less: Current portion of long-term debt
|
28.7
|
|
|
121.6
|
|
||
Long-term debt
|
3,663.5
|
|
|
3,753.9
|
|
||
Less: Debt issuance costs
|
51.2
|
|
|
67.1
|
|
||
Long-term debt, net
|
$
|
3,612.3
|
|
|
$
|
3,686.8
|
|
2020
|
$
|
53.2
|
|
2021
|
77.1
|
|
|
2022
|
471.3
|
|
|
2023
|
29.8
|
|
|
2024
|
1,460.8
|
|
|
Thereafter
|
1,600.0
|
|
|
Total
|
$
|
3,692.2
|
|
|
Location of Gain (Loss) Reclassified into Net Income (Loss)
|
|
Gain (Loss) Reclassified During the Twelve Months Ended December 31,
|
|
Total of Financial Statement Line Item
|
|
Gain (Loss) Expected to be Reclassified During the Next 12 Months
|
||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
|||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
Currency forward contracts
|
Cost of Goods Sold
|
|
$
|
2.4
|
|
|
$
|
(2.8
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
5,628.3
|
|
|
$
|
5.0
|
|
Fixed-to-fixed cross-currency swap
|
Other Income (Expense), net
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
(12.5
|
)
|
|
—
|
|
|||||
Variable-to-fixed interest rate swap
|
Interest Expense
|
|
(2.0
|
)
|
|
3.2
|
|
|
—
|
|
|
(217.3
|
)
|
|
(8.2
|
)
|
|
Location of Gain/(Loss) Recognized in Net Income (Loss)
|
|
Gain (Loss) Recognized During the Twelve Months Ended December 31,
|
|
Total of Financial Statement Line Item
|
||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
||||||||||
|
|
|
(in millions)
|
|
|
||||||||||||
Currency forward contracts
|
Cost of Goods Sold
|
|
$
|
3.9
|
|
|
$
|
1.6
|
|
|
$
|
2.7
|
|
|
$
|
5,628.3
|
|
Currency forward contracts
|
Other Income (Expense), Net
|
|
—
|
|
|
1.4
|
|
|
(0.1
|
)
|
|
(12.5
|
)
|
||||
Currency option contracts
|
Cost of Goods Sold
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
5,628.3
|
|
•
|
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, 2019
|
|
December 31, 2018
|
|
|
||||||||||||
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
|
Input
|
||||||||
|
(in millions)
|
|
|
||||||||||||||
Balance Sheet Classification
|
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
271.3
|
|
|
$
|
271.3
|
|
|
$
|
44.0
|
|
|
$
|
44.0
|
|
|
Level 1
|
Prepaid expenses and other
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges - currency forward contracts
|
5.0
|
|
|
5.0
|
|
|
1.3
|
|
|
1.3
|
|
|
Level 2
|
||||
Cash flow hedges - variable-to-fixed interest rate swap
|
0.9
|
|
|
0.9
|
|
|
0.9
|
|
|
0.9
|
|
|
Level 2
|
||||
Nondesignated - currency forward contracts
|
1.9
|
|
|
1.9
|
|
|
0.6
|
|
|
0.6
|
|
|
Level 2
|
||||
Other assets and deferred charges
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges - currency forward contracts
|
3.4
|
|
|
3.4
|
|
|
0.4
|
|
|
0.4
|
|
|
Level 2
|
||||
Cash flow hedges - fixed-to-fixed cross-currency swap
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
Level 2
|
||||
Cash flow hedges - variable-to-fixed interest rate swap
|
2.2
|
|
|
2.2
|
|
|
1.6
|
|
|
1.6
|
|
|
Level 2
|
||||
Accrued expenses and other
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges - currency forward contracts
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|
Level 2
|
||||
Cash flow hedges - variable-to-fixed interest rate swap
|
7.9
|
|
|
7.9
|
|
|
0.7
|
|
|
0.7
|
|
|
Level 2
|
||||
Nondesignated - currency forward contracts
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|
Level 2
|
||||
Postretirement benefits and other long-term liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges - currency forward contracts
|
—
|
|
|
—
|
|
|
0.9
|
|
|
0.9
|
|
|
Level 2
|
||||
Cash flow hedges - variable-to-fixed interest rate swap
|
18.4
|
|
|
18.4
|
|
|
6.9
|
|
|
6.9
|
|
|
Level 2
|
|
December 31, 2019
|
|
December 31, 2018
|
|
|
||||||||||||
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
|
Input
|
||||||||
|
(in millions)
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revolving Credit Facility
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 2
|
Term Loan A Facility
|
340.0
|
|
|
337.9
|
|
|
83.8
|
|
|
79.5
|
|
|
Level 2
|
||||
Term Loan B Facility
|
1,188.8
|
|
|
1,174.0
|
|
|
1,511.2
|
|
|
1,420.6
|
|
|
Level 2
|
||||
7.75% Notes due 2019
|
—
|
|
|
—
|
|
|
100.0
|
|
|
102.1
|
|
|
Level 2
|
||||
6.625% Notes due 2022
|
450.0
|
|
|
455.4
|
|
|
450.0
|
|
|
444.4
|
|
|
Level 2
|
||||
6.50% Notes due 2027
|
500.0
|
|
|
516.3
|
|
|
500.0
|
|
|
446.3
|
|
|
Level 2
|
||||
6.25% Notes due 2026
|
400.0
|
|
|
409.0
|
|
|
400.0
|
|
|
358.0
|
|
|
Level 2
|
||||
6.25% Notes due 2025
|
700.0
|
|
|
716.6
|
|
|
700.0
|
|
|
636.7
|
|
|
Level 2
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
Balance Sheet Classification
|
|
Fair Value
|
|
Asset Impairment
|
|
Fair Value
|
|
Asset Impairment
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28.8
|
|
Other assets and deferred charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
Pension Benefits
|
|
OPEB
|
|||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
U.S.
|
|
U.K.
|
|
U.S.
|
|
U.K.
|
|
U.S.
|
|
U.K.
|
|
|
|
|
|
|
|||||||||
Discount rate
|
3.40
|
%
|
|
2.05
|
%
|
|
4.30
|
%
|
|
2.95
|
%
|
|
3.65
|
%
|
|
2.75
|
%
|
|
3.35
|
%
|
|
4.35
|
%
|
|
3.65
|
%
|
Expected return on plan assets
|
7.25
|
%
|
|
4.00
|
%
|
|
7.50
|
%
|
|
5.10
|
%
|
|
7.45
|
%
|
|
5.10
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Rate of compensation increase
|
N/A
|
|
|
3.15
|
%
|
|
4.00
|
%
|
|
3.40
|
%
|
|
4.00
|
%
|
|
3.40
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
Pension Benefits
|
|
OPEB
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Change in benefit obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
734.5
|
|
|
$
|
824.0
|
|
|
$
|
537.3
|
|
|
$
|
613.3
|
|
Service cost
|
1.5
|
|
|
2.6
|
|
|
0.3
|
|
|
0.4
|
|
||||
Interest cost
|
28.0
|
|
|
27.3
|
|
|
12.8
|
|
|
12.4
|
|
||||
Plan amendments
|
—
|
|
|
4.3
|
|
|
—
|
|
|
(2.3
|
)
|
||||
Actuarial loss (gain)
|
71.5
|
|
|
(63.2
|
)
|
|
11.9
|
|
|
(43.8
|
)
|
||||
Change in GM portion of OPEB obligation
|
—
|
|
|
—
|
|
|
3.1
|
|
|
(32.6
|
)
|
||||
Participant contributions
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||||
Curtailments
|
(1.9
|
)
|
|
(11.6
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||
Settlements
|
(28.8
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
||||
Benefit payments
|
(44.1
|
)
|
|
(39.7
|
)
|
|
(15.5
|
)
|
|
(9.9
|
)
|
||||
Sale of business
|
(26.2
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
||||
Currency fluctuations
|
5.5
|
|
|
(9.4
|
)
|
|
—
|
|
|
—
|
|
||||
Other
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
||||
Net change
|
5.7
|
|
|
(89.5
|
)
|
|
11.8
|
|
|
(76.0
|
)
|
||||
Benefit obligation at end of year
|
$
|
740.2
|
|
|
$
|
734.5
|
|
|
$
|
549.1
|
|
|
$
|
537.3
|
|
|
|
|
|
|
|
|
|
||||||||
Change in plan assets
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
$
|
625.8
|
|
|
$
|
702.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
87.5
|
|
|
(31.0
|
)
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
10.0
|
|
|
4.4
|
|
|
15.5
|
|
|
9.9
|
|
||||
Participant contributions
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||||
Benefit payments
|
(44.1
|
)
|
|
(39.8
|
)
|
|
(15.5
|
)
|
|
(9.9
|
)
|
||||
Settlements
|
(28.8
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
||||
Sale of business
|
(20.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Currency fluctuations
|
6.7
|
|
|
(9.7
|
)
|
|
—
|
|
|
—
|
|
||||
Net change
|
10.8
|
|
|
(76.4
|
)
|
|
—
|
|
|
—
|
|
||||
Fair value of plan assets at end of year
|
$
|
636.6
|
|
|
$
|
625.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pension Benefits
|
|
OPEB
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Noncurrent assets
|
$
|
21.2
|
|
|
$
|
26.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
(6.6
|
)
|
|
(6.5
|
)
|
|
(29.1
|
)
|
|
(30.8
|
)
|
||||
Noncurrent liabilities
|
(118.2
|
)
|
|
(128.6
|
)
|
|
(520.0
|
)
|
|
(506.5
|
)
|
||||
Net liability
|
$
|
(103.6
|
)
|
|
$
|
(108.7
|
)
|
|
$
|
(549.1
|
)
|
|
$
|
(537.3
|
)
|
|
Pension Benefits
|
|
OPEB
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Net actuarial gain (loss)
|
$
|
(239.2
|
)
|
|
$
|
(230.6
|
)
|
|
$
|
19.3
|
|
|
$
|
31.3
|
|
Net prior service credit (cost)
|
(1.2
|
)
|
|
(1.2
|
)
|
|
4.7
|
|
|
6.2
|
|
||||
Total amounts recorded
|
$
|
(240.4
|
)
|
|
$
|
(231.8
|
)
|
|
$
|
24.0
|
|
|
$
|
37.5
|
|
|
Pension Benefits
|
|
OPEB
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Service cost
|
$
|
1.5
|
|
|
$
|
2.6
|
|
|
$
|
3.6
|
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
|
$
|
0.3
|
|
Interest cost
|
28.0
|
|
|
27.3
|
|
|
28.9
|
|
|
12.8
|
|
|
12.4
|
|
|
13.3
|
|
||||||
Expected asset return
|
(41.1
|
)
|
|
(45.8
|
)
|
|
(44.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortized actuarial loss
|
6.4
|
|
|
7.8
|
|
|
7.1
|
|
|
0.1
|
|
|
0.8
|
|
|
0.6
|
|
||||||
Amortized prior service cost (credit)
|
—
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
(1.5
|
)
|
|
(2.7
|
)
|
|
(2.7
|
)
|
||||||
Curtailment loss (gain)
|
—
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
||||||
Settlement charge
|
10.4
|
|
|
0.4
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost (credit)
|
$
|
5.2
|
|
|
$
|
(4.4
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
11.7
|
|
|
$
|
10.3
|
|
|
$
|
11.5
|
|
|
U.S.
|
|
U.K.
|
||||||||||||
|
|
|
Target
|
|
|
|
Target
|
||||||||
|
2019
|
|
2018
|
|
Allocation
|
|
2019
|
|
2018
|
|
Allocation
|
||||
Equity securities
|
35.2
|
%
|
|
31.9
|
%
|
|
30% - 55%
|
|
22.7
|
%
|
|
19.0
|
%
|
|
15% - 25%
|
Fixed income securities
|
52.9
|
|
|
57.5
|
|
|
40% - 60%
|
|
66.8
|
|
|
68.3
|
|
|
65% - 75%
|
Alternative assets
|
10.4
|
|
|
10.0
|
|
|
5% - 10%
|
|
9.4
|
|
|
10.5
|
|
|
5% - 15%
|
Cash
|
1.5
|
|
|
0.6
|
|
|
0% - 5%
|
|
1.1
|
|
|
2.2
|
|
|
0% - 5%
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Asset Categories
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Cash and Cash Equivalents
|
|
$
|
7.3
|
|
|
$
|
2.0
|
|
|
$
|
—
|
|
|
$
|
9.3
|
|
Equity
|
|
|
|
|
|
|
|
|
||||||||
U.S. Large Cap
|
|
82.4
|
|
|
3.0
|
|
|
—
|
|
|
85.4
|
|
||||
U.S. Small/Mid Cap
|
|
22.7
|
|
|
—
|
|
|
—
|
|
|
22.7
|
|
||||
World Equity
|
|
88.1
|
|
|
4.7
|
|
|
—
|
|
|
92.8
|
|
||||
Fixed Income Securities
|
|
|
|
|
|
|
|
|
||||||||
Government & Agencies
|
|
74.3
|
|
|
45.0
|
|
|
—
|
|
|
119.3
|
|
||||
Corporate Bonds - Investment Grade
|
|
185.8
|
|
|
0.6
|
|
|
—
|
|
|
186.4
|
|
||||
Corporate Bonds - Non-investment Grade
|
|
21.7
|
|
|
1.1
|
|
|
—
|
|
|
22.8
|
|
||||
Emerging Market Debt
|
|
20.4
|
|
|
0.7
|
|
|
—
|
|
|
21.1
|
|
||||
Other
|
|
6.9
|
|
|
4.8
|
|
|
—
|
|
|
11.7
|
|
||||
Other
|
|
|
|
|
|
|
|
|
||||||||
Property Funds (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57.3
|
|
||||
Liquid Alternatives Fund (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
||||
Structured Credit Fund (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
||||
Total Plan Assets
|
|
$
|
509.6
|
|
|
$
|
61.9
|
|
|
$
|
—
|
|
|
$
|
636.6
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Asset Categories
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Cash and Cash Equivalents
|
|
$
|
3.5
|
|
|
$
|
3.2
|
|
|
$
|
—
|
|
|
$
|
6.7
|
|
Equity
|
|
|
|
|
|
|
|
|
||||||||
U.S. Large Cap
|
|
72.5
|
|
|
3.4
|
|
|
—
|
|
|
75.9
|
|
||||
U.S. Small/Mid Cap
|
|
17.4
|
|
|
0.1
|
|
|
—
|
|
|
17.5
|
|
||||
World Equity
|
|
79.5
|
|
|
5.3
|
|
|
—
|
|
|
84.8
|
|
||||
Fixed Income Securities
|
|
|
|
|
|
|
|
|
||||||||
Government & Agencies
|
|
86.5
|
|
|
54.3
|
|
|
—
|
|
|
140.8
|
|
||||
Corporate Bonds - Investment Grade
|
|
177.2
|
|
|
2.7
|
|
|
—
|
|
|
179.9
|
|
||||
Corporate Bonds - Non-investment Grade
|
|
19.8
|
|
|
1.5
|
|
|
—
|
|
|
21.3
|
|
||||
Emerging Market Debt
|
|
18.0
|
|
|
0.9
|
|
|
—
|
|
|
18.9
|
|
||||
Other
|
|
6.9
|
|
|
8.9
|
|
|
—
|
|
|
15.8
|
|
||||
Other
|
|
|
|
|
|
|
|
|
||||||||
Property Funds (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56.0
|
|
||||
Liquid Alternatives Fund (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
||||
Structured Credit Fund (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.7
|
|
||||
Total Plan Assets
|
|
$
|
481.3
|
|
|
$
|
80.3
|
|
|
$
|
—
|
|
|
$
|
625.8
|
|
|
|
|
Weighted-Average
|
|||
|
Number of
|
|
Grant Date Fair
|
|||
|
Shares/Units
|
|
Value per Share/Unit
|
|||
|
(in millions, except per share data)
|
|||||
Outstanding at January 1, 2017
|
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
|
|
Granted
|
1.7
|
|
|
14.57
|
|
|
Vested
|
(0.4
|
)
|
|
24.16
|
|
|
Canceled
|
(0.3
|
)
|
|
15.84
|
|
|
Outstanding at December 31, 2018
|
3.5
|
|
|
$
|
16.00
|
|
Granted
|
1.0
|
|
|
15.78
|
|
|
Vested
|
(0.7
|
)
|
|
15.53
|
|
|
Canceled
|
(0.7
|
)
|
|
16.05
|
|
|
Outstanding at December 31, 2019
|
3.1
|
|
|
$
|
16.03
|
|
|
|
|
Weighted Average
|
|||
|
Number of
|
|
Grant Date Fair
|
|||
|
Shares
|
|
Value per Share
|
|||
EBITDA Awards
|
(in millions, except per share data)
|
|||||
Outstanding at January 1, 2017
|
0.5
|
|
|
$
|
30.19
|
|
Granted
|
0.2
|
|
|
39.01
|
|
|
Vested
|
(0.1
|
)
|
|
27.73
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2017
|
0.6
|
|
|
$
|
33.91
|
|
Granted
|
—
|
|
|
—
|
|
|
Vested
|
(0.1
|
)
|
|
37.67
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2018
|
0.5
|
|
|
$
|
34.49
|
|
Granted
|
—
|
|
|
—
|
|
|
Vested
|
(0.4
|
)
|
|
31.21
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2019
|
0.1
|
|
|
$
|
39.09
|
|
|
|
|
|
|||
TSR Awards
|
|
|
|
|||
Outstanding at January 1, 2017
|
0.5
|
|
|
$
|
19.55
|
|
Granted
|
0.2
|
|
|
24.58
|
|
|
Vested
|
(0.1
|
)
|
|
22.78
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2017
|
0.6
|
|
|
$
|
20.93
|
|
Granted
|
0.3
|
|
|
13.91
|
|
|
Vested
|
(0.1
|
)
|
|
31.21
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2018
|
0.8
|
|
|
$
|
16.25
|
|
Granted
|
0.3
|
|
|
24.36
|
|
|
Vested
|
(0.2
|
)
|
|
17.54
|
|
|
Canceled
|
(0.1
|
)
|
|
20.49
|
|
|
Outstanding at December 31, 2019
|
0.8
|
|
|
$
|
20.13
|
|
|
|
|
|
|||
Free Cash Flow Awards
|
|
|
|
|||
Outstanding at January 1, 2018
|
—
|
|
|
$
|
—
|
|
Granted
|
0.3
|
|
|
14.28
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2018
|
0.3
|
|
|
$
|
14.28
|
|
Granted
|
—
|
|
|
—
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Canceled
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2019
|
0.3
|
|
|
$
|
14.28
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in millions)
|
||||||||||
U.S. loss
|
$
|
(889.0
|
)
|
|
$
|
(549.4
|
)
|
|
$
|
(37.1
|
)
|
Non - U.S. income
|
356.0
|
|
|
435.5
|
|
|
377.1
|
|
|||
Total income (loss) before income taxes
|
$
|
(533.0
|
)
|
|
$
|
(113.9
|
)
|
|
$
|
340.0
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in millions)
|
||||||||||
Current
|
|
|
|
|
|
||||||
Federal
|
$
|
(11.9
|
)
|
|
$
|
(81.5
|
)
|
|
$
|
87.1
|
|
State and local
|
0.1
|
|
|
3.2
|
|
|
(0.7
|
)
|
|||
Foreign
|
49.3
|
|
|
46.5
|
|
|
62.4
|
|
|||
Total current
|
$
|
37.5
|
|
|
$
|
(31.8
|
)
|
|
$
|
148.8
|
|
|
|
|
|
|
|
||||||
Deferred
|
|
|
|
|
|
||||||
Federal
|
$
|
(73.5
|
)
|
|
$
|
(5.1
|
)
|
|
$
|
(122.3
|
)
|
State and local
|
(1.5
|
)
|
|
(6.7
|
)
|
|
(17.0
|
)
|
|||
Foreign
|
(11.4
|
)
|
|
(13.5
|
)
|
|
(7.0
|
)
|
|||
Total deferred
|
(86.4
|
)
|
|
(25.3
|
)
|
|
(146.3
|
)
|
|||
Total income tax expense (benefit)
|
$
|
(48.9
|
)
|
|
$
|
(57.1
|
)
|
|
$
|
2.5
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Federal statutory
|
$
|
(111.9
|
)
|
|
$
|
(23.9
|
)
|
|
$
|
119.0
|
|
Foreign income taxes
|
(40.2
|
)
|
|
(39.7
|
)
|
|
(96.3
|
)
|
|||
Change in enacted tax rate
|
0.2
|
|
|
(8.3
|
)
|
|
(107.6
|
)
|
|||
Transition tax
|
(7.5
|
)
|
|
5.8
|
|
|
108.3
|
|
|||
State and local
|
(20.0
|
)
|
|
(12.8
|
)
|
|
(6.3
|
)
|
|||
Tax credits
|
(9.6
|
)
|
|
(20.1
|
)
|
|
(8.8
|
)
|
|||
Valuation allowance
|
12.6
|
|
|
12.9
|
|
|
(6.1
|
)
|
|||
Goodwill impairment
|
92.4
|
|
|
21.6
|
|
|
—
|
|
|||
Withholding taxes
|
4.0
|
|
|
6.6
|
|
|
4.7
|
|
|||
U.S. tax on unremitted foreign earnings
|
(2.8
|
)
|
|
4.1
|
|
|
(18.6
|
)
|
|||
Global intangible low-taxed income
|
31.1
|
|
|
8.0
|
|
|
—
|
|
|||
Uncertain tax positions
|
5.9
|
|
|
(9.8
|
)
|
|
13.5
|
|
|||
Other
|
(3.1
|
)
|
|
(1.5
|
)
|
|
0.7
|
|
|||
Effective income tax expense (benefit)
|
$
|
(48.9
|
)
|
|
$
|
(57.1
|
)
|
|
$
|
2.5
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Deferred tax assets
|
|
|
|
||||
Employee benefits
|
$
|
149.4
|
|
|
$
|
152.9
|
|
Inventory
|
27.3
|
|
|
22.9
|
|
||
Net operating loss (NOL) carryforwards
|
201.7
|
|
|
166.0
|
|
||
Tax credit carryforwards
|
47.8
|
|
|
44.3
|
|
||
Capital allowance carryforwards
|
9.3
|
|
|
10.0
|
|
||
Capitalized expenditures
|
42.9
|
|
|
25.9
|
|
||
Interest carryforward
|
43.9
|
|
|
—
|
|
||
Operating lease liabilities
|
27.1
|
|
|
—
|
|
||
Other
|
42.7
|
|
|
47.3
|
|
||
Valuation allowances
|
(196.0
|
)
|
|
(183.3
|
)
|
||
Deferred tax assets
|
$
|
396.1
|
|
|
$
|
286.0
|
|
|
|
|
|
||||
Deferred tax liabilities
|
|
|
|
||||
Other intangible assets
|
(199.7
|
)
|
|
(176.0
|
)
|
||
Fixed assets
|
(120.7
|
)
|
|
(141.9
|
)
|
||
Operating lease right-of-use assets
|
(27.1
|
)
|
|
—
|
|
||
Other
|
(4.1
|
)
|
|
(15.2
|
)
|
||
Deferred tax liabilities
|
$
|
(351.6
|
)
|
|
$
|
(333.1
|
)
|
|
|
|
|
||||
Deferred tax asset (liability), net
|
$
|
44.5
|
|
|
$
|
(47.1
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
U.S. federal and state deferred tax asset (liability), net
|
$
|
5.0
|
|
|
$
|
(76.6
|
)
|
Other foreign deferred tax asset, net
|
39.5
|
|
|
29.5
|
|
||
Deferred tax asset (liability), net
|
$
|
44.5
|
|
|
$
|
(47.1
|
)
|
|
Unrecognized Income Tax
|
|
Interest and
|
||||
|
Benefits
|
|
Penalties
|
||||
|
(in millions)
|
||||||
Balance at January 1, 2017
|
$
|
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
|
|
Increase in prior year tax positions
|
5.6
|
|
|
3.5
|
|
||
Decrease in prior year tax positions
|
(16.9
|
)
|
|
(2.5
|
)
|
||
Increase in current year tax positions
|
6.0
|
|
|
—
|
|
||
Settlement
|
(3.7
|
)
|
|
(1.6
|
)
|
||
Balance at December 31, 2018
|
$
|
38.7
|
|
|
$
|
6.9
|
|
Increase in prior year tax positions
|
0.2
|
|
|
4.5
|
|
||
Decrease in prior year tax positions
|
(3.1
|
)
|
|
(0.1
|
)
|
||
Increase in current year tax positions
|
4.4
|
|
|
—
|
|
||
Foreign currency remeasurement adjustment
|
0.9
|
|
|
0.2
|
|
||
Balance at December 31, 2019
|
$
|
41.1
|
|
|
$
|
11.5
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in millions, except per share data)
|
||||||||||
Numerator
|
|
|
|
|
|
||||||
Net income (loss) attributable to AAM
|
$
|
(484.5
|
)
|
|
$
|
(57.5
|
)
|
|
$
|
337.1
|
|
Less: Net income allocated to participating securities
|
—
|
|
|
—
|
|
|
(7.5
|
)
|
|||
Net income (loss) attributable to common shareholders - Basic and Dilutive
|
$
|
(484.5
|
)
|
|
$
|
(57.5
|
)
|
|
$
|
329.6
|
|
|
|
|
|
|
|
||||||
Denominators
|
|
|
|
|
|
||||||
Basic common shares outstanding -
|
|
|
|
|
|
||||||
Weighted-average shares outstanding
|
115.6
|
|
|
115.0
|
|
|
104.6
|
|
|||
Less: Participating securities
|
(3.3
|
)
|
|
(3.4
|
)
|
|
(2.3
|
)
|
|||
Weighted-average common shares outstanding
|
112.3
|
|
|
111.6
|
|
|
102.3
|
|
|||
|
|
|
|
|
|
||||||
Effect of dilutive securities -
|
|
|
|
|
|
||||||
Dilutive stock-based compensation
|
—
|
|
|
—
|
|
|
0.5
|
|
|||
|
|
|
|
|
|
||||||
Diluted shares outstanding -
|
|
|
|
|
|
||||||
Adjusted weighted-average shares after assumed conversions
|
112.3
|
|
|
111.6
|
|
|
102.8
|
|
|||
|
|
|
|
|
|
||||||
Basic EPS
|
$
|
(4.31
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
3.22
|
|
|
|
|
|
|
|
||||||
Diluted EPS
|
$
|
(4.31
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
3.21
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Beginning balance
|
$
|
57.7
|
|
|
$
|
49.5
|
|
Accruals
|
18.5
|
|
|
19.1
|
|
||
Settlements
|
(10.4
|
)
|
|
(10.7
|
)
|
||
Adjustments to prior period accruals
|
(3.9
|
)
|
|
0.4
|
|
||
Foreign currency translation
|
0.1
|
|
|
(0.6
|
)
|
||
Ending balance
|
$
|
62.0
|
|
|
$
|
57.7
|
|
|
Defined Benefit Plans
|
|
Foreign Currency Translation Adjustments
|
|
Unrecognized Loss on Cash Flow Hedges
|
|
Total
|
||||||||
Balance at January 1, 2017
|
$
|
(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
|
|
(b)
|
—
|
|
|
5.3
|
|
(c)
|
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
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications
|
41.9
|
|
|
(62.7
|
)
|
|
5.4
|
|
|
(15.4
|
)
|
||||
Income tax effect of other comprehensive income (loss) before reclassifications
|
(8.4
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
(8.6
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss into net loss
|
6.0
|
|
(b)
|
0.2
|
|
|
(0.4
|
)
|
(c)
|
5.8
|
|
||||
Income taxes reclassified into net loss
|
(1.4
|
)
|
|
—
|
|
|
0.7
|
|
|
(0.7
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
38.1
|
|
|
(62.5
|
)
|
|
5.5
|
|
|
(18.9
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2018
|
$
|
(213.9
|
)
|
|
$
|
(96.6
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(311.6
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications
|
(61.5
|
)
|
(a)
|
(4.6
|
)
|
|
(19.0
|
)
|
|
(85.1
|
)
|
||||
Income tax effect of other comprehensive loss before reclassifications
|
5.6
|
|
|
—
|
|
|
6.3
|
|
|
11.9
|
|
||||
Amounts reclassified from accumulated other comprehensive loss into net loss
|
12.5
|
|
(b)
|
—
|
|
|
(1.7
|
)
|
(c)
|
10.8
|
|
||||
Income taxes reclassified into net loss
|
(2.6
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
(2.8
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive loss
|
(46.0
|
)
|
|
(4.6
|
)
|
|
(14.6
|
)
|
|
(65.2
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2019
|
$
|
(259.9
|
)
|
|
$
|
(101.2
|
)
|
|
$
|
(15.7
|
)
|
|
$
|
(376.8
|
)
|
|
|
|
|
|
|
|
|
||||||||
(a) ASU 2018-02 became effective on January 1, 2019, and we elected to reclassify the stranded tax effects caused by the 2017 Tax Cuts and Jobs Act, resulting in a decrease in Accumulated other comprehensive income (loss) of $27.7 million at January 1, 2019. See Note 1 - Organization and Summary of Significant Accounting Policies for further detail.
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
(b) Subsequent to the adoption of ASU 2017-07 effective January 1, 2018, these amounts were reclassified from AOCI to Other, net for the years ended December 31, 2019 and 2018. The amount reclassified for 2019 includes a credit to AOCI of $7.4 million related to the net effect of the AAM Pension Payout Offer and the Casting Sale. See Note 2 - Sale of Business and Note 9 - Employee Benefit Plans for more detail. For the year ended December 31, 2017, $8.7 million was reclassified from AOCI to Cost of goods sold (COGS) and $(0.5) million was reclassified from AOCI to Selling, general and administrative expenses.
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
(c) The amounts reclassified from AOCI included $(2.4) million in COGS, $2.0 million in interest expense and $(1.3) million in other income for the year ended December 31, 2019, $2.8 million in COGS and $(3.2) million in interest expense for the year ended December 31, 2018 and $5.3 million in COGS for the year ended December 31, 2017.
|
•
|
Driveline products consist primarily of front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles (SUVs), crossover vehicles, passenger cars and commercial vehicles;
|
•
|
Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears and assemblies, connecting rods and variable valve timing products for Original Equipment Manufacturers and Tier 1 automotive suppliers; and
|
•
|
Prior to the sale of the U.S. operations, the Casting segment produced both thin wall castings and high strength ductile iron castings, as well as transmission pump bodies, steering knuckles, control arms, brake anchors and calipers, and ball joint housings for the global light vehicle, commercial and industrial markets.
|
|
|
Twelve Months Ended December 31, 2019
|
||||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Total
|
||||||||
North America
|
|
$
|
3,466.3
|
|
|
$
|
1,153.1
|
|
|
$
|
627.7
|
|
|
$
|
5,247.1
|
|
Asia
|
|
533.6
|
|
|
37.6
|
|
|
—
|
|
|
571.2
|
|
||||
Europe
|
|
351.0
|
|
|
256.3
|
|
|
—
|
|
|
607.3
|
|
||||
South America
|
|
98.8
|
|
|
6.5
|
|
|
—
|
|
|
105.3
|
|
||||
Total
|
|
$
|
4,449.7
|
|
|
$
|
1,453.5
|
|
|
$
|
627.7
|
|
|
$
|
6,530.9
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Twelve Months Ended December 31, 2018
|
||||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Total
|
||||||||
North America
|
|
$
|
3,823.1
|
|
|
$
|
1,275.9
|
|
|
$
|
741.3
|
|
|
$
|
5,840.3
|
|
Asia
|
|
634.4
|
|
|
43.9
|
|
|
—
|
|
|
678.3
|
|
||||
Europe
|
|
329.0
|
|
|
293.1
|
|
|
—
|
|
|
622.1
|
|
||||
South America
|
|
124.9
|
|
|
4.8
|
|
|
—
|
|
|
129.7
|
|
||||
Total
|
|
$
|
4,911.4
|
|
|
$
|
1,617.7
|
|
|
$
|
741.3
|
|
|
$
|
7,270.4
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Twelve Months Ended December 31, 2017
|
||||||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Total
|
||||||||
North America
|
|
$
|
3,676.1
|
|
|
$
|
975.8
|
|
|
$
|
546.9
|
|
|
$
|
5,198.8
|
|
Asia
|
|
472.5
|
|
|
40.0
|
|
|
—
|
|
|
512.5
|
|
||||
Europe
|
|
220.6
|
|
|
200.9
|
|
|
—
|
|
|
421.5
|
|
||||
South America
|
|
132.7
|
|
|
0.5
|
|
|
—
|
|
|
133.2
|
|
||||
Total
|
|
$
|
4,501.9
|
|
|
$
|
1,217.2
|
|
|
$
|
546.9
|
|
|
$
|
6,266.0
|
|
|
|
|
|
||||||
|
Accounts Receivable, Net
|
Contract Liabilities (Current)
|
Contract Liabilities (Long-term)
|
||||||
December 31, 2018
|
$
|
966.5
|
|
$
|
44.3
|
|
$
|
77.6
|
|
December 31, 2019
|
815.4
|
|
18.9
|
|
83.7
|
|
|||
Increase/(decrease)
|
$
|
(151.1
|
)
|
$
|
(25.4
|
)
|
$
|
6.1
|
|
(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
|
971.8
|
|
|
Intangible assets
|
1,223.1
|
|
|
Total assets acquired
|
$
|
3,119.0
|
|
Accounts payable
|
287.8
|
|
|
Accrued expenses and other
|
137.7
|
|
|
Deferred income tax liabilities
|
580.2
|
|
|
Debt
|
1,918.7
|
|
|
Postretirement benefits and other long-term liabilities
|
54.1
|
|
|
Net assets acquired
|
$
|
140.5
|
|
Goodwill
|
$
|
1,393.3
|
|
(in millions)
|
March 1, 2017
|
||
Contractual purchase price
|
$
|
162.5
|
|
Adjustment to contractual purchase price for working capital settlement
|
2.5
|
|
|
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
|
$
|
146.6
|
|
Accounts receivable
|
1.1
|
|
|
Inventories
|
4.8
|
|
|
Prepaid expenses and other
|
3.6
|
|
|
Property, plant and equipment
|
38.4
|
|
|
Intangible assets
|
31.7
|
|
|
Total assets acquired
|
$
|
79.6
|
|
Accounts payable
|
10.8
|
|
|
Accrued expenses and other
|
2.7
|
|
|
Deferred income tax liabilities
|
1.2
|
|
|
Net assets acquired
|
$
|
64.9
|
|
Goodwill
|
$
|
81.7
|
|
•
|
Driveline products consist primarily of front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles (SUVs), crossover vehicles, passenger cars and commercial vehicles;
|
•
|
Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears and assemblies, connecting rods and variable valve timing products for Original Equipment Manufacturers and Tier 1 automotive suppliers; and
|
•
|
Prior to the Casting Sale, the Casting segment produced both thin wall castings and high strength ductile iron castings, as well as transmission pump bodies, steering knuckles, control arms, brake anchors and calipers, and ball joint housings for the global light vehicle, commercial and industrial markets.
|
|
|
Year Ended December 31, 2019
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Sales
|
|
$
|
4,550.2
|
|
|
$
|
1,845.2
|
|
|
$
|
669.2
|
|
|
$
|
—
|
|
|
$
|
7,064.6
|
|
Less: Intersegment sales
|
|
100.5
|
|
|
391.7
|
|
|
41.5
|
|
|
—
|
|
|
533.7
|
|
|||||
Net external sales
|
|
$
|
4,449.7
|
|
|
$
|
1,453.5
|
|
|
$
|
627.7
|
|
|
$
|
—
|
|
|
$
|
6,530.9
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment adjusted EBITDA
|
|
$
|
610.8
|
|
|
$
|
316.5
|
|
|
$
|
43.0
|
|
|
$
|
—
|
|
|
$
|
970.3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
|
$
|
307.7
|
|
|
$
|
186.9
|
|
|
$
|
42.3
|
|
|
$
|
—
|
|
|
$
|
536.9
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
$
|
283.8
|
|
|
$
|
105.5
|
|
|
$
|
28.5
|
|
|
$
|
15.5
|
|
|
$
|
433.3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
3,778.8
|
|
|
$
|
1,900.0
|
|
|
$
|
—
|
|
|
$
|
965.8
|
|
|
$
|
6,644.6
|
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||
Sales
|
|
$
|
5,001.2
|
|
|
$
|
2,046.0
|
|
|
$
|
780.6
|
|
|
$
|
—
|
|
|
$
|
7,827.8
|
|
Less: Intersegment sales
|
|
89.8
|
|
|
428.3
|
|
|
39.3
|
|
|
—
|
|
|
557.4
|
|
|||||
Net external sales
|
|
$
|
4,911.4
|
|
|
$
|
1,617.7
|
|
|
$
|
741.3
|
|
|
$
|
—
|
|
|
$
|
7,270.4
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment adjusted EBITDA
|
|
$
|
754.5
|
|
|
$
|
376.5
|
|
|
$
|
52.9
|
|
|
$
|
—
|
|
|
$
|
1,183.9
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
|
$
|
272.0
|
|
|
$
|
192.6
|
|
|
$
|
64.2
|
|
|
$
|
—
|
|
|
$
|
528.8
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
$
|
339.4
|
|
|
$
|
138.3
|
|
|
$
|
35.0
|
|
|
$
|
12.0
|
|
|
$
|
524.7
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
3,796.6
|
|
|
$
|
2,607.2
|
|
|
$
|
521.5
|
|
|
$
|
585.4
|
|
|
$
|
7,510.7
|
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Driveline
|
|
Metal Forming
|
|
Casting
|
|
Corporate and Eliminations
|
|
Total
|
||||||||||
Sales
|
|
$
|
4,567.8
|
|
|
$
|
1,634.9
|
|
|
$
|
576.1
|
|
|
$
|
—
|
|
|
$
|
6,778.8
|
|
Less: Intersegment sales
|
|
65.9
|
|
|
417.7
|
|
|
29.2
|
|
|
—
|
|
|
512.8
|
|
|||||
Net external sales
|
|
$
|
4,501.9
|
|
|
$
|
1,217.2
|
|
|
$
|
546.9
|
|
|
$
|
—
|
|
|
$
|
6,266.0
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment adjusted EBITDA
|
|
$
|
762.3
|
|
|
$
|
305.7
|
|
|
$
|
34.7
|
|
|
$
|
—
|
|
|
$
|
1,102.7
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
|
$
|
237.3
|
|
|
$
|
147.8
|
|
|
$
|
43.4
|
|
|
$
|
—
|
|
|
$
|
428.5
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
$
|
340.2
|
|
|
$
|
97.7
|
|
|
$
|
24.7
|
|
|
$
|
15.1
|
|
|
$
|
477.7
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
3,507.0
|
|
|
$
|
2,731.1
|
|
|
$
|
926.0
|
|
|
$
|
718.7
|
|
|
$
|
7,882.8
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in millions)
|
||||||||||
Segment adjusted EBITDA
|
|
$
|
970.3
|
|
|
$
|
1,183.9
|
|
|
$
|
1,102.7
|
|
Interest expense
|
|
(217.3
|
)
|
|
(216.3
|
)
|
|
(195.6
|
)
|
|||
Depreciation and amortization
|
|
(536.9
|
)
|
|
(528.8
|
)
|
|
(428.5
|
)
|
|||
Impairment charges
|
|
(665.0
|
)
|
|
(485.5
|
)
|
|
—
|
|
|||
Restructuring and acquisition-related costs
|
|
(57.8
|
)
|
|
(78.9
|
)
|
|
(110.7
|
)
|
|||
Pension settlement
|
|
(9.8
|
)
|
|
—
|
|
|
(3.2
|
)
|
|||
Gain (loss) on sale of business
|
|
(21.3
|
)
|
|
15.5
|
|
|
—
|
|
|||
Gain on bargain purchase of business
|
|
10.8
|
|
|
—
|
|
|
—
|
|
|||
Gain on settlement of capital lease
|
|
—
|
|
|
15.6
|
|
|
—
|
|
|||
Acquisition-related fair value inventory adjustment
|
|
—
|
|
|
—
|
|
|
(24.9
|
)
|
|||
Impact of change in accounting principle
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|||
Debt refinancing and redemption costs
|
|
(8.4
|
)
|
|
(19.4
|
)
|
|
(3.5
|
)
|
|||
Other
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|||
Income (loss) before income taxes
|
|
$
|
(533.0
|
)
|
|
$
|
(113.9
|
)
|
|
$
|
340.0
|
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in millions)
|
||||||||||
Net sales
|
|
|
|
|
|
||||||
United States
|
$
|
2,894.0
|
|
|
$
|
3,293.2
|
|
|
$
|
2,742.7
|
|
Mexico
|
2,353.1
|
|
|
2,547.1
|
|
|
2,456.1
|
|
|||
South America
|
105.3
|
|
|
129.7
|
|
|
133.2
|
|
|||
China
|
315.4
|
|
|
373.4
|
|
|
318.6
|
|
|||
All other Asia
|
255.8
|
|
|
304.9
|
|
|
193.9
|
|
|||
Europe
|
607.3
|
|
|
622.1
|
|
|
421.5
|
|
|||
Total net sales
|
$
|
6,530.9
|
|
|
$
|
7,270.4
|
|
|
$
|
6,266.0
|
|
|
|
|
|
|
|
||||||
Long-lived assets
|
|
|
|
|
|
||||||
United States
|
$
|
2,805.8
|
|
|
$
|
3,612.3
|
|
|
$
|
4,253.8
|
|
Mexico
|
1,117.4
|
|
|
1,117.9
|
|
|
993.8
|
|
|||
South America
|
61.9
|
|
|
70.6
|
|
|
61.4
|
|
|||
China
|
191.4
|
|
|
177.6
|
|
|
180.9
|
|
|||
All other Asia
|
106.8
|
|
|
101.0
|
|
|
103.4
|
|
|||
Europe
|
439.4
|
|
|
356.0
|
|
|
307.4
|
|
|||
Total long-lived assets
|
$
|
4,722.7
|
|
|
$
|
5,435.4
|
|
|
$
|
5,900.7
|
|
|
Three Months Ended,
|
|
||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
|
||||||||
|
(in millions, except per share data)
|
|
||||||||||||||
2019
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
1,719.2
|
|
|
$
|
1,704.3
|
|
|
$
|
1,677.4
|
|
|
$
|
1,430.0
|
|
|
Gross profit
|
222.2
|
|
|
248.3
|
|
|
248.7
|
|
|
183.4
|
|
|
||||
Net income (loss)
|
41.7
|
|
|
52.7
|
|
|
(124.1
|
)
|
(2)
|
(454.4
|
)
|
(3)
|
||||
Net income (loss) attributable to AAM
|
41.6
|
|
|
52.5
|
|
|
(124.2
|
)
|
(2)
|
(454.4
|
)
|
(3)
|
||||
Basic EPS (1)
|
$
|
0.36
|
|
|
$
|
0.45
|
|
|
$
|
(1.10
|
)
|
(2)
|
$
|
(4.04
|
)
|
(3)
|
Diluted EPS (1)
|
$
|
0.36
|
|
|
$
|
0.45
|
|
|
$
|
(1.10
|
)
|
(2)
|
$
|
(4.04
|
)
|
(3)
|
|
|
|
|
|
|
|
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
1,858.4
|
|
|
$
|
1,900.9
|
|
|
$
|
1,817.0
|
|
|
$
|
1,694.1
|
|
|
Gross profit
|
316.3
|
|
|
331.4
|
|
|
267.4
|
|
|
225.3
|
|
|
||||
Net income (loss)
|
89.5
|
|
|
151.3
|
|
|
64.0
|
|
|
(361.6
|
)
|
(4)
|
||||
Net income (loss) attributable to AAM
|
89.4
|
|
|
151.1
|
|
|
63.8
|
|
|
(361.8
|
)
|
(4)
|
||||
Basic EPS (1)
|
$
|
0.78
|
|
|
$
|
1.31
|
|
|
$
|
0.55
|
|
|
$
|
(3.24
|
)
|
(4)
|
Diluted EPS (1)
|
$
|
0.78
|
|
|
$
|
1.30
|
|
|
$
|
0.55
|
|
|
$
|
(3.24
|
)
|
(4)
|
|
|
|
|
|
|
|
|
|
(3)
|
In the fourth quarter of 2019, we recorded a goodwill impairment charge of $440 million, that was not subject to tax effect, associated with the annual goodwill impairment test for our Metal Forming reporting unit. We also recorded a loss on the Casting Sale of approximately $17 million, net of tax, recognized a gain on bargain purchase of approximately $10.8 million, which was not subject to tax effect, associated with the acquisition of Mitec, and recognized a loss of approximately $8 million, net of tax, related to pension settlements.
|
Condensed Consolidating Statements of Operations and Other Comprehensive Income (Loss)
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2019
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External
|
$
|
—
|
|
|
$
|
902.0
|
|
|
$
|
1,992.0
|
|
|
$
|
3,636.9
|
|
|
$
|
—
|
|
|
$
|
6,530.9
|
|
Intercompany
|
—
|
|
|
1.9
|
|
|
274.7
|
|
|
47.7
|
|
|
(324.3
|
)
|
|
—
|
|
||||||
Total net sales
|
—
|
|
|
903.9
|
|
|
2,266.7
|
|
|
3,684.6
|
|
|
(324.3
|
)
|
|
6,530.9
|
|
||||||
Cost of goods sold
|
—
|
|
|
913.2
|
|
|
2,065.4
|
|
|
2,974.0
|
|
|
(324.3
|
)
|
|
5,628.3
|
|
||||||
Gross profit
|
—
|
|
|
(9.3
|
)
|
|
201.3
|
|
|
710.6
|
|
|
—
|
|
|
902.6
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
232.5
|
|
|
27.7
|
|
|
104.5
|
|
|
—
|
|
|
364.7
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
5.9
|
|
|
85.8
|
|
|
3.7
|
|
|
—
|
|
|
95.4
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
566.1
|
|
|
98.9
|
|
|
—
|
|
|
665.0
|
|
||||||
Restructuring and acquisition-related costs
|
—
|
|
|
24.3
|
|
|
21.7
|
|
|
11.8
|
|
|
—
|
|
|
57.8
|
|
||||||
Loss on sale of business
|
—
|
|
|
—
|
|
|
21.3
|
|
|
—
|
|
|
—
|
|
|
21.3
|
|
||||||
Operating income (loss)
|
—
|
|
|
(272.0
|
)
|
|
(521.3
|
)
|
|
491.7
|
|
|
—
|
|
|
(301.6
|
)
|
||||||
Non-operating income (expense), net
|
—
|
|
|
(247.0
|
)
|
|
7.7
|
|
|
7.9
|
|
|
—
|
|
|
(231.4
|
)
|
||||||
Income (loss) before income taxes
|
—
|
|
|
(519.0
|
)
|
|
(513.6
|
)
|
|
499.6
|
|
|
—
|
|
|
(533.0
|
)
|
||||||
Income tax expense (benefit)
|
—
|
|
|
(76.5
|
)
|
|
(10.7
|
)
|
|
38.3
|
|
|
—
|
|
|
(48.9
|
)
|
||||||
Earnings (loss) from equity in subsidiaries
|
(484.5
|
)
|
|
(218.3
|
)
|
|
14.5
|
|
|
—
|
|
|
688.3
|
|
|
—
|
|
||||||
Net income (loss) before royalties
|
(484.5
|
)
|
|
(660.8
|
)
|
|
(488.4
|
)
|
|
461.3
|
|
|
688.3
|
|
|
(484.1
|
)
|
||||||
Royalties
|
—
|
|
|
224.4
|
|
|
3.0
|
|
|
(227.4
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) after royalties
|
(484.5
|
)
|
|
(436.4
|
)
|
|
(485.4
|
)
|
|
233.9
|
|
|
688.3
|
|
|
(484.1
|
)
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
||||||
Net income (loss) attributable to AAM
|
$
|
(484.5
|
)
|
|
$
|
(436.4
|
)
|
|
$
|
(485.4
|
)
|
|
$
|
233.5
|
|
|
$
|
688.3
|
|
|
$
|
(484.5
|
)
|
Other comprehensive loss, net of tax
|
(37.5
|
)
|
|
(28.3
|
)
|
|
(18.3
|
)
|
|
(12.1
|
)
|
|
58.7
|
|
|
(37.5
|
)
|
||||||
Comprehensive income (loss)
|
$
|
(522.0
|
)
|
|
$
|
(464.7
|
)
|
|
$
|
(503.7
|
)
|
|
$
|
221.4
|
|
|
$
|
747.0
|
|
|
$
|
(522.0
|
)
|
2018
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External
|
$
|
—
|
|
|
$
|
1,088.4
|
|
|
$
|
2,204.8
|
|
|
$
|
3,977.2
|
|
|
$
|
—
|
|
|
$
|
7,270.4
|
|
Intercompany
|
—
|
|
|
4.2
|
|
|
294.8
|
|
|
41.9
|
|
|
(340.9
|
)
|
|
—
|
|
||||||
Total net sales
|
—
|
|
|
1,092.6
|
|
|
2,499.6
|
|
|
4,019.1
|
|
|
(340.9
|
)
|
|
7,270.4
|
|
||||||
Cost of goods sold
|
—
|
|
|
1,033.8
|
|
|
2,249.0
|
|
|
3,188.1
|
|
|
(340.9
|
)
|
|
6,130.0
|
|
||||||
Gross profit
|
—
|
|
|
58.8
|
|
|
250.6
|
|
|
831.0
|
|
|
—
|
|
|
1,140.4
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
210.3
|
|
|
81.4
|
|
|
94.0
|
|
|
—
|
|
|
385.7
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
5.1
|
|
|
90.8
|
|
|
3.5
|
|
|
—
|
|
|
99.4
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
485.5
|
|
|
—
|
|
|
—
|
|
|
485.5
|
|
||||||
Restructuring and acquisition-related costs
|
—
|
|
|
34.2
|
|
|
40.4
|
|
|
4.3
|
|
|
—
|
|
|
78.9
|
|
||||||
Gain on sale of business
|
—
|
|
|
—
|
|
|
(15.5
|
)
|
|
—
|
|
|
—
|
|
|
(15.5
|
)
|
||||||
Operating income (loss)
|
—
|
|
|
(190.8
|
)
|
|
(432.0
|
)
|
|
729.2
|
|
|
—
|
|
|
106.4
|
|
||||||
Non-operating income (expense), net
|
—
|
|
|
(260.6
|
)
|
|
15.6
|
|
|
24.7
|
|
|
—
|
|
|
(220.3
|
)
|
||||||
Income (loss) before income taxes
|
—
|
|
|
(451.4
|
)
|
|
(416.4
|
)
|
|
753.9
|
|
|
—
|
|
|
(113.9
|
)
|
||||||
Income tax expense (benefit)
|
—
|
|
|
(34.2
|
)
|
|
(55.4
|
)
|
|
32.5
|
|
|
—
|
|
|
(57.1
|
)
|
||||||
Earnings (loss) from equity in subsidiaries
|
(57.5
|
)
|
|
(168.3
|
)
|
|
168.0
|
|
|
—
|
|
|
57.8
|
|
|
—
|
|
||||||
Net income (loss) before royalties
|
(57.5
|
)
|
|
(585.5
|
)
|
|
(193.0
|
)
|
|
721.4
|
|
|
57.8
|
|
|
(56.8
|
)
|
||||||
Royalties
|
—
|
|
|
276.6
|
|
|
3.4
|
|
|
(280.0
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) after royalties
|
(57.5
|
)
|
|
(308.9
|
)
|
|
(189.6
|
)
|
|
441.4
|
|
|
57.8
|
|
|
(56.8
|
)
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
||||||
Net income (loss) attributable to AAM
|
$
|
(57.5
|
)
|
|
$
|
(308.9
|
)
|
|
$
|
(189.6
|
)
|
|
$
|
440.7
|
|
|
$
|
57.8
|
|
|
$
|
(57.5
|
)
|
Other comprehensive income (loss), net of tax
|
(18.9
|
)
|
|
9.4
|
|
|
(51.6
|
)
|
|
(44.2
|
)
|
|
86.4
|
|
|
(18.9
|
)
|
||||||
Comprehensive income (loss)
|
$
|
(76.4
|
)
|
|
$
|
(299.5
|
)
|
|
$
|
(241.2
|
)
|
|
$
|
396.5
|
|
|
$
|
144.2
|
|
|
$
|
(76.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
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
|
|
Condensed Consolidating Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2019
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
|
||||||||||||
Assets
|
(in millions)
|
|
||||||||||||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
168.7
|
|
|
$
|
0.2
|
|
|
$
|
363.1
|
|
|
$
|
—
|
|
|
$
|
532.0
|
|
|
Accounts receivable, net
|
—
|
|
|
87.1
|
|
|
176.4
|
|
|
551.9
|
|
|
—
|
|
|
815.4
|
|
|
||||||
Intercompany receivables
|
—
|
|
|
4,603.4
|
|
|
4,024.5
|
|
|
122.6
|
|
|
(8,750.5
|
)
|
|
—
|
|
|
||||||
Inventories, net
|
—
|
|
|
36.6
|
|
|
114.1
|
|
|
222.9
|
|
|
—
|
|
|
373.6
|
|
|
||||||
Other current assets
|
—
|
|
|
47.6
|
|
|
4.2
|
|
|
85.0
|
|
|
—
|
|
|
136.8
|
|
|
||||||
Total current assets
|
—
|
|
|
4,943.4
|
|
|
4,319.4
|
|
|
1,345.5
|
|
|
(8,750.5
|
)
|
|
1,857.8
|
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
287.3
|
|
|
543.9
|
|
|
1,527.2
|
|
|
—
|
|
|
2,358.4
|
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
377.9
|
|
|
321.2
|
|
|
—
|
|
|
699.1
|
|
|
||||||
Other intangible assets, net
|
—
|
|
|
18.1
|
|
|
817.9
|
|
|
28.5
|
|
|
—
|
|
|
864.5
|
|
|
||||||
Intercompany notes and accounts receivable
|
—
|
|
|
1,829.2
|
|
|
161.4
|
|
|
—
|
|
|
(1,990.6
|
)
|
|
—
|
|
|
||||||
Other assets and deferred charges
|
—
|
|
|
408.3
|
|
|
123.8
|
|
|
332.7
|
|
|
—
|
|
|
864.8
|
|
|
||||||
Investment in subsidiaries
|
2,294.0
|
|
|
1,773.3
|
|
|
1,491.6
|
|
|
—
|
|
|
(5,558.9
|
)
|
|
—
|
|
|
||||||
Total assets
|
$
|
2,294.0
|
|
|
$
|
9,259.6
|
|
|
$
|
7,835.9
|
|
|
$
|
3,555.1
|
|
|
$
|
(16,300.0
|
)
|
|
$
|
6,644.6
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion of long-term debt
|
$
|
—
|
|
|
$
|
4.2
|
|
|
$
|
7.4
|
|
|
$
|
17.1
|
|
|
$
|
—
|
|
|
$
|
28.7
|
|
|
Accounts payable
|
—
|
|
|
85.2
|
|
|
142.7
|
|
|
395.6
|
|
|
—
|
|
|
623.5
|
|
|
||||||
Intercompany payables
|
—
|
|
|
3,652.1
|
|
|
5,033.8
|
|
|
64.6
|
|
|
(8,750.5
|
)
|
|
—
|
|
|
||||||
Other current liabilities
|
—
|
|
|
158.8
|
|
|
31.0
|
|
|
184.4
|
|
|
—
|
|
|
374.2
|
|
|
||||||
Total current liabilities
|
—
|
|
|
3,900.3
|
|
|
5,214.9
|
|
|
661.7
|
|
|
(8,750.5
|
)
|
|
1,026.4
|
|
|
||||||
Intercompany notes and accounts payable
|
1,313.6
|
|
|
11.5
|
|
|
98.9
|
|
|
566.6
|
|
|
(1,990.6
|
)
|
|
—
|
|
|
||||||
Long-term debt, net
|
—
|
|
|
3,523.4
|
|
|
—
|
|
|
88.9
|
|
|
—
|
|
|
3,612.3
|
|
|
||||||
Other long-term liabilities
|
—
|
|
|
475.4
|
|
|
282.5
|
|
|
267.6
|
|
|
—
|
|
|
1,025.5
|
|
|
||||||
Total liabilities
|
1,313.6
|
|
|
7,910.6
|
|
|
5,596.3
|
|
|
1,584.8
|
|
|
(10,741.1
|
)
|
|
5,664.2
|
|
|
||||||
Total AAM stockholders' equity
|
977.6
|
|
|
1,349.0
|
|
|
2,239.6
|
|
|
1,967.5
|
|
|
(5,556.1
|
)
|
|
977.6
|
|
|
||||||
Noncontrolling interests in subsidiaries
|
2.8
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|
(2.8
|
)
|
|
2.8
|
|
|
||||||
Total stockholders' equity
|
980.4
|
|
|
1,349.0
|
|
|
2,239.6
|
|
|
1,970.3
|
|
|
(5,558.9
|
)
|
|
980.4
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
2,294.0
|
|
|
$
|
9,259.6
|
|
|
$
|
7,835.9
|
|
|
$
|
3,555.1
|
|
|
$
|
(16,300.0
|
)
|
|
$
|
6,644.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2018
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
36.7
|
|
|
$
|
0.2
|
|
|
$
|
439.5
|
|
|
$
|
—
|
|
|
$
|
476.4
|
|
|
Accounts receivable, net
|
—
|
|
|
122.7
|
|
|
287.7
|
|
|
556.1
|
|
|
—
|
|
|
966.5
|
|
|
||||||
Intercompany receivables
|
—
|
|
|
3,337.2
|
|
|
2,356.3
|
|
|
93.5
|
|
|
(5,787.0
|
)
|
|
—
|
|
|
||||||
Inventories, net
|
—
|
|
|
42.5
|
|
|
157.7
|
|
|
259.5
|
|
|
—
|
|
|
459.7
|
|
|
||||||
Other current assets
|
—
|
|
|
34.4
|
|
|
6.0
|
|
|
86.8
|
|
|
—
|
|
|
127.2
|
|
|
||||||
Total current assets
|
—
|
|
|
3,573.5
|
|
|
2,807.9
|
|
|
1,435.4
|
|
|
(5,787.0
|
)
|
|
2,029.8
|
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
275.8
|
|
|
758.6
|
|
|
1,480.0
|
|
|
—
|
|
|
2,514.4
|
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
719.0
|
|
|
422.8
|
|
|
—
|
|
|
1,141.8
|
|
|
||||||
Other intangible assets, net
|
—
|
|
|
18.6
|
|
|
1,059.6
|
|
|
32.9
|
|
|
—
|
|
|
1,111.1
|
|
|
||||||
Intercompany notes and accounts receivable
|
—
|
|
|
1,316.8
|
|
|
144.5
|
|
|
—
|
|
|
(1,461.3
|
)
|
|
—
|
|
|
||||||
Other assets and deferred charges
|
—
|
|
|
319.8
|
|
|
126.4
|
|
|
267.4
|
|
|
—
|
|
|
713.6
|
|
|
||||||
Investment in subsidiaries
|
2,790.5
|
|
|
2,241.5
|
|
|
1,748.7
|
|
|
—
|
|
|
(6,780.7
|
)
|
|
—
|
|
|
||||||
Total assets
|
$
|
2,790.5
|
|
|
$
|
7,746.0
|
|
|
$
|
7,364.7
|
|
|
$
|
3,638.5
|
|
|
$
|
(14,029.0
|
)
|
|
$
|
7,510.7
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion of long-term debt
|
$
|
—
|
|
|
$
|
100.0
|
|
|
$
|
—
|
|
|
$
|
21.6
|
|
|
$
|
—
|
|
|
$
|
121.6
|
|
|
Accounts payable
|
—
|
|
|
94.2
|
|
|
246.5
|
|
|
499.5
|
|
|
—
|
|
|
840.2
|
|
|
||||||
Intercompany payables
|
—
|
|
|
2,050.0
|
|
|
3,615.7
|
|
|
121.3
|
|
|
(5,787.0
|
)
|
|
—
|
|
|
||||||
Other current liabilities
|
—
|
|
|
169.0
|
|
|
35.8
|
|
|
190.2
|
|
|
—
|
|
|
395.0
|
|
|
||||||
Total current liabilities
|
—
|
|
|
2,413.2
|
|
|
3,898.0
|
|
|
832.6
|
|
|
(5,787.0
|
)
|
|
1,356.8
|
|
|
||||||
Intercompany notes and accounts payable
|
1,304.2
|
|
|
12.5
|
|
|
—
|
|
|
144.6
|
|
|
(1,461.3
|
)
|
|
—
|
|
|
||||||
Long-term debt, net
|
—
|
|
|
3,578.3
|
|
|
3.0
|
|
|
105.5
|
|
|
—
|
|
|
3,686.8
|
|
|
||||||
Other long-term liabilities
|
—
|
|
|
508.9
|
|
|
271.7
|
|
|
200.2
|
|
|
—
|
|
|
980.8
|
|
|
||||||
Total liabilities
|
1,304.2
|
|
|
6,512.9
|
|
|
4,172.7
|
|
|
1,282.9
|
|
|
(7,248.3
|
)
|
|
6,024.4
|
|
|
||||||
Total AAM stockholders' equity
|
1,483.9
|
|
|
1,233.1
|
|
|
3,192.0
|
|
|
2,353.2
|
|
|
(6,778.3
|
)
|
|
1,483.9
|
|
|
||||||
Noncontrolling interests in subsidiaries
|
2.4
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
(2.4
|
)
|
|
2.4
|
|
|
||||||
Total stockholders' equity
|
1,486.3
|
|
|
1,233.1
|
|
|
3,192.0
|
|
|
2,355.6
|
|
|
(6,780.7
|
)
|
|
1,486.3
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
2,790.5
|
|
|
$
|
7,746.0
|
|
|
$
|
7,364.7
|
|
|
$
|
3,638.5
|
|
|
$
|
(14,029.0
|
)
|
|
$
|
7,510.7
|
|
|
Condensed Consolidating Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2019
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
230.7
|
|
|
$
|
42.3
|
|
|
$
|
286.6
|
|
|
$
|
—
|
|
|
$
|
559.6
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
(58.7
|
)
|
|
(119.9
|
)
|
|
(254.7
|
)
|
|
—
|
|
|
(433.3
|
)
|
||||||
Proceeds from sale of property, plant and equipment
|
—
|
|
|
—
|
|
|
4.5
|
|
|
0.5
|
|
|
—
|
|
|
5.0
|
|
||||||
Purchase buyouts of leased equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
||||||
Proceeds from sale of business
|
—
|
|
|
141.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
141.2
|
|
||||||
Acquisition of business, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.4
|
)
|
|
—
|
|
|
(9.4
|
)
|
||||||
Investment in affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.2
|
)
|
|
—
|
|
|
(9.2
|
)
|
||||||
Intercompany activity
|
—
|
|
|
—
|
|
|
(12.0
|
)
|
|
12.0
|
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by (used in) investing activities
|
—
|
|
|
82.5
|
|
|
(127.4
|
)
|
|
(261.7
|
)
|
|
—
|
|
|
(306.6
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net debt activity
|
—
|
|
|
(167.7
|
)
|
|
(1.1
|
)
|
|
(20.4
|
)
|
|
—
|
|
|
(189.2
|
)
|
||||||
Debt issuance costs
|
—
|
|
|
(3.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
||||||
Purchase of treasury stock
|
(7.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.5
|
)
|
||||||
Intercompany activity
|
7.5
|
|
|
(10.2
|
)
|
|
83.7
|
|
|
(81.0
|
)
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by (used in) financing activities
|
—
|
|
|
(181.2
|
)
|
|
82.6
|
|
|
(101.4
|
)
|
|
—
|
|
|
(200.0
|
)
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
—
|
|
|
132.0
|
|
|
(2.5
|
)
|
|
(76.4
|
)
|
|
—
|
|
|
53.1
|
|
||||||
Cash, cash equivalents and restricted cash at beginning of period
|
—
|
|
|
36.7
|
|
|
2.7
|
|
|
439.5
|
|
|
—
|
|
|
478.9
|
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
—
|
|
|
$
|
168.7
|
|
|
$
|
0.2
|
|
|
$
|
363.1
|
|
|
$
|
—
|
|
|
$
|
532.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2018
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
262.0
|
|
|
$
|
145.5
|
|
|
$
|
364.0
|
|
|
$
|
—
|
|
|
$
|
771.5
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
(63.2
|
)
|
|
(163.8
|
)
|
|
(297.7
|
)
|
|
—
|
|
|
(524.7
|
)
|
||||||
Proceeds from sale of property, plant and equipment
|
—
|
|
|
—
|
|
|
4.3
|
|
|
0.6
|
|
|
—
|
|
|
4.9
|
|
||||||
Purchase buyouts of leased equipment
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
||||||
Proceeds from sale of business
|
—
|
|
|
—
|
|
|
42.7
|
|
|
4.4
|
|
|
—
|
|
|
47.1
|
|
||||||
Acquisition of business, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|
(1.3
|
)
|
||||||
Investment in affiliates
|
—
|
|
|
(3.0
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
(3.7
|
)
|
||||||
Intercompany activity
|
—
|
|
|
—
|
|
|
(44.1
|
)
|
|
44.1
|
|
|
—
|
|
|
—
|
|
||||||
Net cash used in investing activities
|
—
|
|
|
(66.2
|
)
|
|
(161.4
|
)
|
|
(250.6
|
)
|
|
—
|
|
|
(478.2
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net debt activity
|
—
|
|
|
(240.4
|
)
|
|
(0.7
|
)
|
|
69.5
|
|
|
—
|
|
|
(171.6
|
)
|
||||||
Debt issuance costs
|
—
|
|
|
(6.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.9
|
)
|
||||||
Purchase of treasury stock
|
(3.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
||||||
Intercompany activity
|
3.7
|
|
|
(3.7
|
)
|
|
21.5
|
|
|
(21.5
|
)
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by (used in) financing activities
|
—
|
|
|
(251.0
|
)
|
|
18.5
|
|
|
48.0
|
|
|
—
|
|
|
(184.5
|
)
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.7
|
)
|
|
—
|
|
|
(6.7
|
)
|
||||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
—
|
|
|
(55.2
|
)
|
|
2.6
|
|
|
154.7
|
|
|
—
|
|
|
102.1
|
|
||||||
Cash, cash equivalents and restricted cash at beginning of period
|
—
|
|
|
91.9
|
|
|
0.1
|
|
|
284.8
|
|
|
—
|
|
|
376.8
|
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
—
|
|
|
$
|
36.7
|
|
|
$
|
2.7
|
|
|
$
|
439.5
|
|
|
$
|
—
|
|
|
$
|
478.9
|
|
2017
|
Holdings
|
|
AAM Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elims
|
|
Consolidated
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 (decrease) in cash, cash equivalents and restricted cash
|
—
|
|
|
7.6
|
|
|
(1.5
|
)
|
|
(110.5
|
)
|
|
—
|
|
|
(104.4
|
)
|
||||||
Cash, cash equivalents and restricted cash at beginning of period
|
—
|
|
|
84.3
|
|
|
1.6
|
|
|
395.3
|
|
|
—
|
|
|
481.2
|
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
—
|
|
|
$
|
91.9
|
|
|
$
|
0.1
|
|
|
$
|
284.8
|
|
|
$
|
—
|
|
|
$
|
376.8
|
|
•
|
We tested the effectiveness of controls over the Company’s annual goodwill impairment test and determination of related assumptions, including those over market comparables, future cash flows and discount and long-term growth rates.
|
•
|
We evaluated management’s ability to accurately forecast future cash flows within the annual goodwill impairment test by comparing actual reporting unit results to management’s historical forecasts.
|
•
|
We evaluated the reasonableness of management’s forecast of future cash flows by comparing the projected cash flows to (1) historical results, (2) internal communications to management and the Board of Directors, and (3) forecasted information included in Company press releases, analyst and industry reports of the Company and companies in its peer group. With the assistance of our fair value specialists, we tested the underlying source information, and the mathematical accuracy of the forecasted cash flows within the fair value
|
•
|
With the assistance of our fair value specialists, we evaluated the market comparables and discount and long-term growth rates, including testing the underlying source information and the mathematical accuracy of the calculations, and developed a range of independent estimates and compared those to the rates selected by management.
|
•
|
We tested the effectiveness of controls over the accounting and reporting for significant non-recurring transactions, which includes the sale of Casting.
|
•
|
We read the sale and purchase agreement (the “Agreement”) and assessed the significant terms and provisions for the appropriate accounting treatment, including the accounting for the deferred payment obligation.
|
•
|
We evaluated management’s conclusion that the sale qualified as held-for-sale but not discontinued operations presentation in the consolidated financial statements.
|
•
|
We tested the completeness and accuracy of management’s identification of assets and liabilities included in the disposal group as defined in the Agreement and the underlying data supporting the calculation of the carrying value and fair value of the disposal group.
|
•
|
We recalculated the $225.0 million impairment charge recorded upon the reclassification of Casting to held-for-sale and the $21.3 million adjustment recorded at the closing of the Casting sale by comparing the selling price less costs to sell to the carrying value of the disposal group.
|
•
|
We evaluated the completeness and accuracy of the presentation and disclosure of the sale of Casting in the consolidated financial statements.
|
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
|
|
|
|
2.01
|
|
|
|
|
|
|
|
|
2.02
|
|
|
|
|
|
|
|
|
3.01
|
|
|
|
|
|
|
|
|
3.02
|
|
|
|
|
|
|
|
|
4.01
|
|
|
|
|
|
|
|
|
4.02
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
4.03
|
|
|
|
|
|
|
|
|
4.04
|
|
|
|
|
|
|
|
|
4.05
|
|
|
|
|
|
|
|
|
4.06
|
|
|
|
|
|
|
|
|
4.07
|
|
|
|
|
|
|
|
|
4.08
|
|
|
|
|
|
|
|
|
4.09
|
|
|
|
|
|
|
|
|
4.10
|
|
|
|
|
|
|
|
|
4.11
|
|
|
|
|
|
|
|
|
4.12
|
|
|
|
|
|
|
|
|
4.13
|
|
|
|
|
|
|
|
|
4.14
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
*4.15
|
|
|
|
|
|
10.01
|
|
|
|
|
|
|
|
|
10.02
|
|
|
|
|
|
|
|
|
++10.03
|
|
|
|
|
|
|
|
|
++10.04
|
|
|
|
|
|
|
|
|
10.05
|
|
|
|
|
|
|
|
|
++10.06
|
|
|
|
|
|
|
|
|
|
|
|
‡10.07
|
|
|
|
|
|
|
|
|
‡10.08
|
|
|
|
|
|
|
|
|
‡10.09
|
|
|
|
|
|
|
|
|
‡10.10
|
|
|
|
|
|
|
|
|
10.11
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
10.12
|
|
|
|
|
|
|
|
|
10.13
|
|
|
|
|
|
|
|
|
10.14
|
|
|
|
|
|
|
|
|
‡10.15
|
|
|
|
|
|
|
|
|
‡10.16
|
|
|
|
|
|
|
|
|
‡10.17
|
|
|
|
|
|
|
|
|
‡10.18
|
|
|
|
|
|
|
|
|
‡10.19
|
|
|
|
|
|
|
|
|
‡10.20
|
|
|
|
|
|
|
|
|
‡10.21
|
|
|
|
|
|
|
|
|
‡10.22
|
|
|
|
|
|
|
|
|
‡10.23
|
|
|
|
|
Number
|
|
Description of Exhibit
|
|
|
|
‡10.24
|
|
|
|
|
|
|
|
|
‡10.25
|
|
|
|
|
|
|
|
|
‡10.26
|
|
|
|
|
|
|
|
|
‡10.27
|
|
|
|
|
|
|
|
|
‡10.28
|
|
|
|
|
|
|
|
|
‡10.29
|
|
|
|
|
|
|
|
|
10.30
|
|
|
|
|
|
|
|
|
*21
|
|
|
|
|
|
*23
|
|
|
|
|
|
*31.1
|
|
|
|
|
|
*31.2
|
|
|
|
|
|
*32
|
|
Number
|
|
Description of Exhibit
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
|
|
**101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
**101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
**101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
**101.PRE
|
|
XBRL Extension Presentation 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
|
|
Disposals (a)
|
|
Below
|
|
|
|
Period
|
||||||||||
|
(in millions)
|
||||||||||||||||||||
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
|
|
|
(3)
|
|
180.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Inventory valuation allowance
|
14.8
|
|
|
39.1
|
|
|
9.2
|
|
|
45.8
|
|
|
(2)
|
|
17.3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
7.0
|
|
|
6.6
|
|
|
—
|
|
|
5.2
|
|
|
(1)
|
|
8.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for deferred taxes
|
180.4
|
|
|
12.9
|
|
|
—
|
|
|
10.0
|
|
|
(4)
|
|
183.3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Inventory valuation allowance
|
17.3
|
|
|
22.2
|
|
|
—
|
|
|
25.1
|
|
|
(2)
|
|
14.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
8.4
|
|
|
13.2
|
|
|
(0.8
|
)
|
|
12.8
|
|
|
(1)
|
|
8.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for deferred taxes
|
183.3
|
|
|
25.4
|
|
|
—
|
|
|
12.7
|
|
|
(5)
|
|
196.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Inventory valuation allowance
|
14.4
|
|
|
31.0
|
|
|
1.4
|
|
|
26.3
|
|
|
(2)
|
|
20.5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Amounts represent reserves recognized in conjunction with our acquisitions in 2019 and 2017, as well as reserves derecognized in conjunction with the Casting Sale in 2019.
|
(1)
|
Uncollectible accounts charged off, net of recoveries.
|
(2)
|
Primarily relates to write-offs of excess and obsolete inventories, as well as adjustments for physical quantity discrepancies.
|
(3)
|
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.
|
(4)
|
Primarily reflects a reduction in deferred tax assets at various foreign locations due to foreign currency translation.
|
(5)
|
Primarily reflects the reversal of a valuation allowance against certain deferred tax assets in foreign locations, as well as changes due to foreign currency translation.
|
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
|
(Registrant)
|
|
/s/ James G. Zaliwski
|
James G. Zaliwski
|
Chief Accounting Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ David C. Dauch
|
|
Chairman of the Board &
|
|
February 14, 2020
|
David C. Dauch
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
/s/ Christopher J. May
|
|
Vice President &
|
|
February 14, 2020
|
Christopher J. May
|
|
Chief Financial Officer
|
|
|
|
|
|
|
|
/s/ Elizabeth A. Chappell
|
|
Director
|
|
February 14, 2020
|
Elizabeth A. Chappell
|
|
|
|
|
|
|
|
|
|
/s/ William L. Kozyra
|
|
Director
|
|
February 14, 2020
|
William L. Kozyra
|
|
|
|
|
|
|
|
|
|
/s/ Peter D. Lyons
|
|
Director
|
|
February 14, 2020
|
Peter D. Lyons
|
|
|
|
|
|
|
|
|
|
/s/ James A. McCaslin
|
|
Director
|
|
February 14, 2020
|
James A. McCaslin
|
|
|
|
|
|
|
|
|
|
/s/ William P. Miller II
|
|
Director
|
|
February 14, 2020
|
William P. Miller II
|
|
|
|
|
|
|
|
|
|
/s/ Herbert K. Parker
|
|
Director
|
|
February 14, 2020
|
Herbert K. Parker
|
|
|
|
|
|
|
|
|
|
/s/ Sandra Pierce
|
|
Director
|
|
February 14, 2020
|
Sandra Pierce
|
|
|
|
|
|
|
|
|
|
/s/ John F. Smith
|
|
Director
|
|
February 14, 2020
|
John F. Smith
|
|
|
|
|
|
|
|
|
|
/s/ Samuel Valenti III
|
|
Director
|
|
February 14, 2020
|
Samuel Valenti III
|
|
|
|
|
|
|
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) Limited
|
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
|
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
|
AAM Maquiladora Mexico, S. de R.L. de C.V.
|
Mexico
|
AAM Distribution Company, Inc.
|
Delaware
|
Metaldyne Performance Group, Inc.
|
Delaware
|
MPG Holdco I Inc.
|
Delaware
|
ASP Grede Intermediate Holdings LLC
|
Delaware
|
AAM Casting Corp.
|
Delaware
|
Brillion Iron Works, Inc.
|
Delaware
|
Novogredetek Holdings, S. de. R.L. de C.V.
|
Mexico
|
Novocast, S. de R. L. de C.V.
|
Mexico
|
Transformaciones Especializadas NC, S.A. de C.V.
|
Mexico
|
ASP MD Holdings, 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
|
MetaldyneLux S.á r.l.
|
Luxembourg
|
MetaldyneLux Holding S.á r.l.
|
Luxembourg
|
Metaldyne Europe S.á 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
|
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 Acquisition Co., Inc.
|
Delaware
|
HHI Holdings, LLC
|
Delaware
|
Bearing Holdings, LLC
|
Delaware
|
Kyklos Holdings, LLC
|
Delaware
|
Kyklos Bearing International, LLC
|
Delaware
|
HHI FormTech, LLC
|
Delaware
|
Jernberg Industries, LLC
|
Delaware
|
Impact Forge Group, LLC
|
Delaware
|
AAM Powder Metal Components, Inc.
|
Ohio
|
|
|
|
|
|
/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 14, 2020
|
|
|
February 14, 2020
|
|