DELAWARE
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38-3161171
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(State
or other jurisdiction of
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(I.R.S.
Employer
|
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incorporation
or organization)
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Identification
No.)
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ONE
DAUCH DRIVE, DETROIT, MICHIGAN
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48211-1198
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(Address
of principal executive offices)
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(Zip
Code)
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Title
of Each Class
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Name
of Each Exchange on Which Registered
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COMMON
STOCK, PAR VALUE $0.01 PER SHARE
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NEW
YORK STOCK EXCHANGE
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PREFERRED
SHARE PURCHASE RIGHTS, PAR VALUE $0.01 PER SHARE
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NEW
YORK STOCK EXCHANGE
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Internet
Website Access to Reports
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Page
Number
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Business
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1
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Item 1A |
Risk
Factors
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3
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Item 1B |
Unresolved
Staff Comments
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6
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Properties
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7
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|||
Legal
Proceedings
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8
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|||
Submission
of Matters to a Vote of Security Holders and Executive Officers of the
Registrant
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8
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|||
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||||
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
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12
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|||
Selected
Financial Data
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13
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|||
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
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14
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|||
Quantitative
and Qualitative Disclosures About Market Risk
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32
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|||
Financial
Statements and Supplementary Data
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33
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|||
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
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72
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|||
Controls
and Procedures
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72
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|||
Other
Information
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72
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|||
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||||
Directors, Executive
Officers and Corporate Governance
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72
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Executive
Compensation
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72
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|||
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
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72
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|||
Certain
Relationships and Related Transactions, and Director
Independence
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72
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|||
Principal
Accounting Fees and Services
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72
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|||
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||||
Exhibits
and Financial Statement Schedules
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73
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Exhibit 10.60 |
Form
of 2009 Deferred Compensation Award Agreement
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|||
Computation
of Ratio of Earnings to Fixed Charges
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||||
Exhibit 18 |
Preferability
Letter from Independent Registered Public Accounting Firm
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|||
Subsidiaries
of the Registrant
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||||
Consent
of Independent Registered Public Accounting Firm
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|||
Certification
of Chief Executive Officer Pursuant to Rule 13a-14(a) of the
Securities Exchange Act
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||||
Certification
of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities
Exchange Act
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||||
Certifications
of Chief Executive Officer and Chief Financial Officer Pursuant to 18
U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
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(a)
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General
Development of Business
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(b)
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Financial
Information About Segments
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Year
ended December 31,
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||||||||||||
2008
|
2007
|
2006
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||||||||||
Axles
and driveshafts
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79.2 | % | 84.4 | % | 85.0 | % | ||||||
Chassis
components, forged products and other
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20.8 | % | 15.6 | % | 15.0 | % | ||||||
Total
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100.0 | % | 100.0 | % | 100.0 | % |
(d)
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Financial
Information About Geographic Areas
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Name
|
Sq. Feet
|
Type
of
Interest
|
Function
|
|||
Detroit
Manufacturing Complex
Detroit,
MI
|
2,455,000 |
Owned
|
Rear
and front axles and steering linkages
|
|||
Guanajuato
Manufacturing Complex
Guanajuato, Mexico
|
1,336,000
|
Owned
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Rear
axles and driveshafts, front axles, front auxiliary driveshafts and
forging products
|
|||
Three
Rivers Manufacturing Facility
Three
Rivers, MI
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806,000
|
Owned
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Rear
axles and driveshafts, front auxiliary driveshafts and universal
joints
|
|||
Colfor
Manufacturing, Inc.
|
|
|
|
|||
Malvern, OH | 235,000 | Owned | Forged products | |||
Minerva, OH |
190,000
|
Owned | Forged products | |||
Salem, OH |
175,000
|
Owned | Forged products | |||
Albion Automotive | ||||||
Glasgow,
Scotland
|
464,000
|
Leased |
Front
and rear axles for medium and heavy-duty
Trucks
and buses
|
|||
Lancashire, England |
135,000
|
Leased |
Crankshafts
and fabricated parts
|
|||
Araucária
Manufacturing Facility
Araucária,
Brazil
|
345,000
|
Owned
|
Machining
of forged and cast products
|
|||
Corporate
Headquarters
Detroit,
MI
|
252,000
|
Owned
|
Executive
and administrative offices
|
|||
Changshu
Manufacturing Facility
Changshu,
China
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191,000
|
Owned
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Rear
axles
|
|||
MSP
Industries
Oxford,
MI
|
125,000
|
Leased
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Forged
products
|
|||
Cheektowaga
Manufacturing Facility
Cheektowaga,
NY
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116,000
|
Owned
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Machining
of forged products
|
|||
Technical
Center
Rochester
Hills, MI
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109,000
|
Owned
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R&D,
design engineering, metallurgy, testing and validation
|
|||
DieTronik
Auburn
Hills, MI
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76,000
|
Owned
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Tool
& die manufacturer
|
|||
Oxford
Forge
Oxford,
MI
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60,000
|
Owned
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Forged
products
|
|||
AccuGear,
Inc.
Fort
Wayne, IN
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49,000
|
Owned
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Forged
and machined products
|
|||
Detroit
South Campus
Detroit,
MI
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40,000
|
Owned
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Quality
engineering technical, process development and safety training
centers
|
|||
AAM
Sona Manufacturing Facility
Pantnagar,
India
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30,000
|
Owned
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Rear
axles
|
|||
European Headquarters
& Engineering Center
Bad
Homburg, Germany
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24,000
|
Leased
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European
headquarters and technical center
|
|||
Pune
Business Office & Engineering Center
Pune,
India
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18,000
|
Leased
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Engineering,
information technologies and support services
|
|||
Olawa
Manufacturing Facility
Olawa,
Poland
|
15,000
|
Owned
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Transmission
differentials
|
Name
__________
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Age
|
Position
|
|||
Richard
E. Dauch .………………….….
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66
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Co-Founder,
Chairman of the Board & Chief Executive Officer
|
|||
David
C. Dauch ………………………...
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44
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President
& Chief Operating Officer
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|||
Yogendra
N. Rahangdale………….……
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61
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Vice
Chairman & Chief Technology Officer
|
|||
John
J. Bellanti…………………….……
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54
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Executive
Vice President - Worldwide Operations
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|||
Michael
K. Simonte………………..…...
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45
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Group
Vice President - Finance & Chief Financial Officer
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|||
Mark
S. Barrett…………………………
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48
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Vice
President - Engineering & Product Development
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|||
David
A. Culton………………………..
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43
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Vice
President - Unibody Vehicle Business Unit
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|||
Michael
C. Flynn…………………..……
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51
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Vice
President - Global Procurement & Supply Chain
Management
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|||
Curt
S. Howell……………………..……
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46
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Vice
President - Full Frame Vehicle Business Unit
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|||
John
E. Jerge………………...………….
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47
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Vice
President - Driveshaft & Halfshaft Business Unit
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|||
Patrick
S. Lancaster……………….……
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61
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Vice
President - Chief Administrative Officer &
Secretary
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|||
Allan
R. Monich ………………….……
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55
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Vice
President - Quality Assurance & Customer
Satisfaction
|
|||
Steven
J. Proctor…………………….….
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52
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President
- AAM Asia, Vice President - AAM Corporate
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|||
Alberto
L. Satine…………………..……
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52
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Vice
President - Strategic & Business Development
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|||
Kevin
M. Smith………………………...
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47
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Vice
President - Mexico Operations
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|||
John
S. Sofia………………………..…..
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49
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Vice
President - Commercial Vehicle Business Unit
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|||
Norman
Willemse………………….…..
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52
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Vice
President - Global Metal Formed Product Business
Unit
|
2008
|
1st
Quarter
|
2nd
Quarter
|
3rd
Quarter
|
4th
Quarter
|
Full
Year
|
|||||||||||||||
High
|
$ | 23.08 | $ | 22.75 | $ | 8.74 | $ | 5.38 | $ | 23.08 | ||||||||||
Low
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$ | 16.22 | $ | 7.99 | $ | 4.86 | $ | 1.03 | $ | 1.03 | ||||||||||
2007
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||||||||||||||||||||
High
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$ | 28.16 | $ | 30.01 | $ | 30.59 | $ | 27.91 | $ | 30.59 | ||||||||||
Low
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$ | 17.38 | $ | 26.76 | $ | 21.55 | $ | 18.62 | $ | 17.38 |
Period
|
Total
Number of Shares (Or Units) Purchased
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Average
Price Paid per Share (or Unit)
|
Total
Number of Shares (or Units) Purchased as Part of Publicly Announced Plans
or Programs
|
Maximum
Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be
Purchased Under the Plans or Programs
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||||||||||||
October
2008
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5,092 | $ | 5.38 | - | - | |||||||||||
November
2008
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534 | $ | 3.59 | - | - | |||||||||||
December
2008
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7,471 | $ | 2.33 | - | - |
2008
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2007
|
2006
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2005
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2004
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||||||||||||||||
Statement
of operations data
|
||||||||||||||||||||
Net
sales
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$ | 2,109.2 | $ | 3,248.2 | $ | 3,191.7 | $ | 3,387.3 | $ | 3,599.6 | ||||||||||
Gross
profit (loss)
|
(865.2 | ) | 278.4 | * | (129.4 | )* | 305.0 | * | 478.4 | * | ||||||||||
Selling,
general and
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||||||||||||||||||||
administrative
expenses
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185.4 | 202.8 | 197.4 | 199.6 | 189.7 | |||||||||||||||
Operating
income (loss)
|
(1,050.6 | ) | 75.6 | * | (326.8 | )* | 105.4 | * | 288.7 | * | ||||||||||
Net
interest expense
|
(62.4 | ) | (52.3 | ) | (38.8 | ) | (27.2 | ) | (25.5 | ) | ||||||||||
Net
income (loss)
|
(1,224.3 | )(a) | 37.0 | *(a)(b) | (223.0 | )*(a)(b) | 56.2 | * | 161.9 | *(b) | ||||||||||
Diluted
earnings (loss) per share
|
$ | (23.73 | ) | $ | 0.70 | * | $ | (4.43 | )* | $ | 1.10 | * | $ | 3.02 | * | |||||
Diluted
shares outstanding
|
51.6 | 52.7 | 50.4 | 51.1 | 53.5 | |||||||||||||||
Balance
sheet data
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | 198.8 | $ | 343.6 | $ | 13.5 | $ | 3.7 | $ | 14.4 | ||||||||||
Total
assets
|
2,247.8 | 3,135.9 | * | 2,793.6 | * | 2,948.7 | * | 2,788.9 | * | |||||||||||
Total
long-term debt
|
1,139.9 | 858.1 | 672.2 | 489.2 | 448.0 | |||||||||||||||
Stockholders’
equity (deficit)
|
(435.7 | ) | 899.4 | * | 822.5 | * | 1,003.9 | * | 964.4 | * | ||||||||||
Dividends
declared per share
|
$ | 0.34 | $ | 0.60 | $ | 0.60 | $ | 0.60 | $ | 0.45 | ||||||||||
Statement
of cash flows data
|
||||||||||||||||||||
Cash
provided by (used in) operating
activities
|
$ | (163.1 | ) | $ | 367.9 | $ | 185.7 | $ | 280.4 | $ | 453.2 | |||||||||
Cash
used in investing activities
|
(231.7 | ) | (186.5 | ) | (323.6 | ) | (305.7 | ) | (240.2 | ) | ||||||||||
Cash
provided by (used in)
|
||||||||||||||||||||
financing
activities
|
254.5 | 148.3 | 147.3 | 14.8 | (211.3 | ) | ||||||||||||||
Dividends
paid
|
(18.3 | ) | (31.8 | ) | (31.0 | ) | (30.4 | ) | (23.0 | ) | ||||||||||
Other
data
|
||||||||||||||||||||
Depreciation
and amortization
|
$ | 199.5 | $ | 229.4 | $ | 206.0 | $ | 185.1 | $ | 171.1 | ||||||||||
Capital
expenditures
|
140.2 | 186.5 | 286.6 | 305.7 | 240.2 | |||||||||||||||
Purchase
buyout of leased equipment
|
- | - | 71.8 | - | - | |||||||||||||||
(a)
|
Includes
special charges, asset impairments, and other non-recurring costs of
$985.4 million in 2008, $58.7 million in 2007 and $248.2 million in 2006,
net of tax, primarily related to restructuring
actions.
|
(b)
|
Includes
charges of $3.5 million in 2007, $1.8 million in 2006 and $15.9 million in
2004, net of tax, related to debt refinancing and redemption
costs.
|
* | These balances have been adjusted to reflect the cumulative change in accounting described in Note 1 of Item 8 – "Financial Statements and Supplementary Data." |
·
|
As
a result of an expanded product development focus that now includes highly
engineered AWD and RWD applications for passenger cars, crossover vehicles
and commercial vehicles, we have increased our total global served market
by approximately 30%.
|
·
|
We
are reducing our domestic production capacity by approximately 70%, while
at the same time increasing global installed capacity by
150%.
|
·
|
In
2008, we negotiated new hourly labor agreements with the International
Association of Machinists (IAM) and International UAW at the original U.S.
locations. Pursuant to these new labor agreements, we are
converting the former fixed legacy labor cost structure of these
facilities to a highly flexible, competitive and variable cost
structure.
|
·
|
In
connection with hourly and salaried attrition programs administered in
2008, AAM reduced its global hourly and salaried workforce by more than
25% in 2008.
|
·
|
We
have also significantly reduced our inventories, amended our Revolving
Credit Facility and suspended our quarterly cash dividend program in
2009. The amendment of our Revolving Credit Facility in the
fourth quarter of 2008 extended the maturity of a portion of the facility
through 2011 and provides AAM with additional financial covenant
flexibility.
|
Loss
of Net Sales
|
$
|
414.0
|
||
Increase
in Gross Loss
|
129.4
|
|||
Increase
in Net Loss
|
132.5
|
·
|
established
a new wage and benefit package for eligible current and newly hired UAW
represented associates;
|
·
|
included
a voluntary Special Separation Program (SSP) for all UAW represented
associates at our original U.S. locations, which offered a range of
retirement and buyout incentives for eligible
associates;
|
·
|
created
an involuntary Buydown Program (BDP) for associates that did not
participate in the SSP. Under the BDP, three annual lump-sum
payments are made to associates in connection with, among other things, a
base wage decrease. Total buydown payments are estimated to
average approximately $91,000 per associate and do not exceed $105,000 per
associate;
|
·
|
set
a limit on Supplemental Unemployment Benefits (SUB) to be paid, thereby
terminating SUB after the limit of $18.0 million is
reached;
|
·
|
included
the closure of our Buffalo Gear, Axle & Linkage facility (Buffalo) and
Tonawanda and Detroit forging facilities;
and
|
·
|
provided
improved operating flexibility through Innovative Operating
Agreements.
|
2008
|
2007
|
2006
|
||||||||||
Asset
impairments, indirect inventory obsolescence and idle leased
assets
|
$ | 603.7 | $ | 11.6 | $ | 196.5 | ||||||
U.S.
hourly workforce and benefit reductions
|
195.1 | 64.0 | 141.1 | |||||||||
Acceleration
of BDP expense
|
51.9 | - | - | |||||||||
Signing
bonus
|
19.5 | - | - | |||||||||
Supplemental
unemployment benefits
|
18.0 | - | 27.1 | |||||||||
U.S.
salary workforce reductions
|
11.8 | 1.7 | 7.5 | |||||||||
Other
|
22.7 | 11.1 | 5.7 | |||||||||
Deferred
tax asset valuation allowances
|
62.7 | - | - | |||||||||
Total
special charges and nonrecurring operating costs
|
$ | 985.4 | $ | 88.4 | $ | 377.9 |
·
|
a
significant decline in current and projected market demand and future
customer production schedules for the major North American light truck
programs we currently support; and
|
·
|
changes
in the extent to which assets at our original U.S. locations will be used
based on long-term plant loading decisions made by management after the
new labor agreements were reached with the International
UAW.
|
·
|
the
general decline in consumer spending as a result of the deteriorating
global economic conditions and uncertain credit markets, which further
negatively affected our projected future production
requirements;
|
·
|
the
announcement of accelerated customer production capacity reductions
for programs that we support;
and
|
·
|
future
sourcing and product planning decisions that were announced and
communicated by some of our customers in the third quarter of
2008, which adversely affected our Colfor Manufacturing
subsidiary.
|
·
|
a
significant decline in current and projected market demand and future
customer production schedules for the major North American light truck
programs we currently support;
|
·
|
long-term
plant loading decisions made by management after the new labor agreements
were reached with the International UAW;
and
|
·
|
the
impact of significant charges resulting from our restructuring actions in
2008.
|
Corporate
Family Rating
|
Secured
Term Loan Rating
|
Unsecured
Senior Notes Rating
|
Outlook
|
||||
Standard
& Poor's
|
CCC+
|
B-
|
CCC-
|
Negative
|
|||
Moody's
Investors Services
|
Caa1
|
B2
|
Caa2
|
Negative
|
|||
Fitch
Ratings
|
B-
|
B+
|
CCC
|
Negative
|
Payments
due by period
|
||||||||||||||||||||
Total
|
<1yr
|
1-3
yrs
|
3-5
yrs
|
>5
yrs
|
||||||||||||||||
(in
millions)
|
||||||||||||||||||||
Long-term
debt
|
$ | 1,132.0 | $ | 21.0 | $ | 307.6 | $ | 253.6 | $ | 549.8 | ||||||||||
Interest
obligations
|
312.3 | 55.9 | 101.3 | 78.7 | 76.4 | |||||||||||||||
Capital
lease obligations
|
7.9 | 0.5 | 1.2 | 0.8 | 5.4 | |||||||||||||||
Operating
leases
|
60.3 | 18.4 | 31.6 | 10.3 | - | |||||||||||||||
Purchase
obligations
|
96.3 | 86.7 | 9.6 | - | - | |||||||||||||||
Other
long-term liabilities
|
701.6 | 59.3 | 144.4 | 134.7 | 363.2 | |||||||||||||||
Total
|
$ | 2,310.4 | $ | 241.8 | $ | 595.7 | $ | 478.1 | $ | 994.8 |
|
(1)
Operating leases include all lease payments through the end of the
contractual lease terms, including elections for repurchase options, and
exclude any non-exercised purchase options on such leased
equipment.
|
(2) Purchase obligations represent our obligated purchase commitments for capital expenditures and related project expense. | |
(3)
Other long-term liabilities represent our estimated pension and other
postretirement benefit obligations that were actuarially determined
through 2018, as well as our unrecognized income tax
benefits.
|
|
·
|
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.
|
|
a.
Recognizes and measures in its financial statements the identifiable
assets acquired, the liabilities assumed, and any noncontrolling interest
in the acquiree
|
b. Recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase | |
c. Determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. |
Expected
|
||||||||
Discount
|
Return
on
|
|||||||
Rate
|
Assets
|
|||||||
(in
millions)
|
||||||||
Decline
in funded status
|
$ | 34.4 | N/A | |||||
Increase
in 2008 expense
|
$ | 1.8 | $ | 1.9 |
·
|
the ability of General Motors Corporation (GM) and Chrysler LLC (Chrysler) to obtain sufficient funding from either governmental or private sources; |
·
|
the
ability of GM and Chrysler to comply with the terms of the Secured
Term Loan Facility provided by the U.S. Treasury and any additional
requirements of the Troubled Asset Relief Program (TARP) applicable to our
customers;
|
·
|
the
impact on our business of requirements imposed on, or actions taken by,
any of our customers in response to TARP or similar
programs;
|
·
|
global
economic conditions;
|
·
|
availability of financing for working capital, capital expenditures, R&D or other general corporate purposes, including 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; |
·
|
reduced
purchases of our products by GM, Chrysler or other
customers;
|
·
|
reduced
demand for our customers’ products (particularly light trucks and SUVs
produced by GM and Chrysler);
|
·
|
our
ability to achieve cost reductions through ongoing restructuring
actions;
|
·
|
additional
restructuring actions that may
occur;
|
·
|
our
ability to achieve the level of cost reductions required to sustain global
cost competitiveness;
|
·
|
our
ability to maintain satisfactory labor relations and avoid future work
stoppages;
|
·
|
our
suppliers’ ability to maintain satisfactory labor relations and avoid work
stoppages;
|
·
|
our
customers’ and their suppliers’ ability to maintain satisfactory labor
relations and avoid work stoppages;
|
·
|
our
ability to implement improvements in our U.S. labor cost
structure;
|
·
|
our
ability to consummate and integrate
acquisitions;
|
·
|
supply
shortages or price increases in raw materials, utilities or other
operating supplies;
|
·
|
our
ability or our customers’ and suppliers’ ability to successfully launch
new product programs on a timely
basis;
|
·
|
our
ability to realize the expected revenues from our new and incremental
business backlog;
|
·
|
our
ability to attract new customers and programs for new
products;
|
·
|
our
ability to develop and produce new products that reflect market
demand;
|
·
|
lower-than-anticipated
market acceptance of new or existing
products;
|
·
|
our
ability to respond to changes in technology, increased competition or
pricing pressures;
|
·
|
continued
or increased high prices for or reduced availability of
fuel;
|
·
|
adverse
changes in laws, government regulations or market conditions affecting our
products or our customers’ products (such as the Corporate Average Fuel
Economy regulations);
|
·
|
adverse
changes in the economic conditions or political stability of our principal
markets (particularly North America, Europe, South America and
Asia);
|
·
|
liabilities
arising from warranty claims, product liability and legal proceedings to
which we are or may become a party;
|
·
|
changes
in liabilities arising from pension and other postretirement benefit
obligations;
|
·
|
risks
of noncompliance with environmental regulations or risks of environmental
issues that could result in unforeseen costs at our
facilities;
|
·
|
our
ability to attract and retain key
associates;
|
·
|
other
unanticipated events and conditions that may hinder our ability to
compete.
|
2008
|
2007
|
2006
|
||||||||||
Net
sales
|
$ | 2,109.2 | $ | 3,248.2 | $ | 3,191.7 | ||||||
Cost
of goods sold
|
2,974.4 | 2,969.8 | 3,321.1 | |||||||||
Gross
profit (loss)
|
(865.2 | ) | 278.4 | (129.4 | ) | |||||||
Selling,
general and administrative expenses
|
185.4 | 202.8 | 197.4 | |||||||||
Operating
income (loss)
|
(1,050.6 | ) | 75.6 | (326.8 | ) | |||||||
Interest
expense
|
(70.4 | ) | (61.6 | ) | (39.0 | ) | ||||||
Investment
income
|
2.5 | 9.3 | 0.2 | |||||||||
Other
income (expense)
|
||||||||||||
Debt
refinancing and redemption costs
|
- | (5.5 | ) | (2.7 | ) | |||||||
Other,
net
|
(2.8 | ) | (0.2 | ) | 12.0 | |||||||
Income
(loss) before income taxes
|
(1,121.3 | ) | 17.6 | (356.3 | ) | |||||||
Income
tax expense (benefit)
|
103.3 | (19.4 | ) | (133.3 | ) | |||||||
Minority
interest
|
0.3 | - | - | |||||||||
Net
income (loss)
|
$ | (1,224.3 | ) | $ | 37.0 | $ | (223.0 | ) | ||||
Basic
earnings (loss) per share
|
$ | (23.73 | ) | $ | 0.72 | $ | (4.43 | ) | ||||
Diluted
earnings (loss) per share
|
$ | (23.73 | ) | $ | 0.70 | $ | (4.43 | ) | ||||
2008
|
2007
|
|||||||
Assets
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 198.8 | $ | 343.6 | ||||
Short-term
investments
|
77.1 | - | ||||||
Accounts
receivable, net of allowances of
|
||||||||
$3.3
million in 2008 and $2.2 million in 2007
|
186.9 | 264.0 | ||||||
AAM-GM
Agreement receivable
|
60.0 | - | ||||||
Inventories,
net
|
111.4 | 242.8 | ||||||
Deferred
income taxes
|
5.5 | 19.5 | ||||||
Prepaid
expenses and other
|
55.6 | 73.4 | ||||||
Total
current assets
|
695.3 | 943.3 | ||||||
Property,
plant and equipment, net
|
1,064.2 | 1,696.2 | ||||||
Deferred
income taxes
|
20.7 | 78.7 | ||||||
Goodwill
|
147.8 | 147.8 | ||||||
GM
postretirement cost sharing asset
|
221.2 | 212.5 | ||||||
Other
assets and deferred charges
|
98.5 | 57.4 | ||||||
Total
assets
|
$ | 2,247.7 | $ | 3,135.9 | ||||
Liabilities
and Stockholders’ Equity (Deficit)
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable
|
$ | 250.9 | $ | 313.8 | ||||
Accrued
compensation and benefits
|
127.5 | 126.6 | ||||||
Deferred
revenue
|
66.7 | 10.2 | ||||||
Deferred
income taxes
|
13.1 | - | ||||||
Other
accrued expenses
|
59.5 | 61.0 | ||||||
Total
current liabilities
|
517.7 | 511.6 | ||||||
Long-term
debt
|
1,139.9 | 858.1 | ||||||
Deferred
income taxes
|
4.8 | 6.6 | ||||||
Deferred
revenue
|
178.2 | 66.0 | ||||||
Postretirement
benefits and other long-term liabilities
|
842.8 | 794.2 | ||||||
Total
liabilities
|
2,683.4 | 2,236.5 | ||||||
Stockholders’
equity (deficit)
|
||||||||
Series
A junior participating preferred stock, par value $0.01 per
share;
|
||||||||
0.1
million shares authorized; no shares outstanding in 2008 or
2007
|
- | - | ||||||
Preferred
stock, par value $0.01 per share; 10.0 million shares
|
||||||||
authorized;
no shares outstanding in 2008 or 2007
|
- | - | ||||||
Common
stock, par value $0.01 per share; 150.0 million shares
|
||||||||
authorized;
56.9 million and 56.7 million shares issued and
outstanding
|
||||||||
in
2008 and 2007, respectively
|
0.6 | 0.6 | ||||||
Series
common stock, par value $0.01 per share; 40.0 million
|
||||||||
shares
authorized; no shares outstanding in 2008 or 2007
|
- | - | ||||||
Paid-in
capital
|
426.7 | 416.3 | ||||||
Retained
earnings (accumulated deficit)
|
(648.6 | ) | 591.9 | |||||
Treasury
stock at cost, 5.2 million shares in 2008 and 2007
|
(173.9 | ) | (173.8 | ) | ||||
Accumulated
other comprehensive income (loss), net of tax
|
||||||||
Defined
benefit plans
|
(29.3 | ) | 33.5 | |||||
Foreign
currency translation adjustments
|
0.2 | 34.2 | ||||||
Unrecognized
loss on derivatives
|
(11.4 | ) | (3.3 | ) | ||||
Total
stockholders’ equity (deficit)
|
(435.7 | ) | 899.4 | |||||
Total
liabilities and stockholders’ equity (deficit)
|
$ | 2,247.7 | $ | 3,135.9 |
2008
|
2007
|
2006
|
||||||||||
Operating
Activities
|
||||||||||||
Net
income (loss)
|
$ | (1,224.3 | ) | $ | 37.0 | $ | (223.0 | ) | ||||
Adjustments
to reconcile net income (loss) to net cash
|
||||||||||||
provided by (used in) operating activities
|
||||||||||||
Asset
impairments and related indirect inventory obsolescence
|
599.0 | 11.6 | 196.5 | |||||||||
Depreciation
and amortization
|
199.5 | 229.4 | 206.0 | |||||||||
Deferred
income taxes
|
82.5 | (47.4 | ) | (184.3 | ) | |||||||
Stock-based
compensation
|
9.9 | 18.4 | 10.2 | |||||||||
Pensions
and other postretirement benefits, net of
contributions
|
3.6 | 53.3 | 114.8 | |||||||||
Loss
on retirement of property, plant and equipment
|
4.0 | 8.5 | 6.3 | |||||||||
Debt
refinancing and redemption costs
|
- | 5.5 | 2.7 | |||||||||
Changes
in operating assets and liabilities
|
||||||||||||
Accounts receivable
|
71.9 | 64.9 | 2.9 | |||||||||
Inventories
|
52.6 | (28.4 | ) | 1.9 | ||||||||
Accounts payable and accrued expenses
|
(77.1 | ) | (5.2 | ) | 43.7 | |||||||
Deferred revenue: AAM-GM Agreement
|
81.8 | - | - | |||||||||
Other assets and liabilities
|
33.5 | 20.3 | 8.0 | |||||||||
Net
cash provided by (used in) operating activities
|
(163.1 | ) | 367.9 | 185.7 | ||||||||
Investing
activities
|
||||||||||||
Purchases
of property, plant and equipment
|
(140.2 | ) | (186.5 | ) | (286.6 | ) | ||||||
Payments
of deposits for acquisition of property and equipment
|
(7.1 | ) | - | - | ||||||||
Proceeds
from sale of property, plant and equipment
|
3.4 | - | - | |||||||||
Reclassification
of cash equivalents to short-term investments
|
(77.1 | ) | - | - | ||||||||
Acquisition,
net
|
(10.7 | ) | - | - | ||||||||
Purchase
buyouts of leased equipment
|
- | - | (71.8 | ) | ||||||||
Proceeds
from sale-leasebacks
|
- | - | 34.8 | |||||||||
Net
cash used in investing activities
|
(231.7 | ) | (186.5 | ) | (323.6 | ) | ||||||
Financing
activities
|
||||||||||||
Net
borrowings (repayments) under revolving credit facilities
|
290.3 | (130.8 | ) | 67.2 | ||||||||
Proceeds
from issuance of long-term debt
|
8.9 | 556.1 | 261.6 | |||||||||
Conversion
of 2.00% Notes
|
(2.3 | ) | - | (147.3 | ) | |||||||
Payment
of Term Loan due 2010
|
- | (252.5 | ) | - | ||||||||
Payments
of other long-term debt and capital lease obligations
|
(11.5 | ) | (0.5 | ) | (1.0 | ) | ||||||
Debt
issuance costs
|
(13.4 | ) | (7.5 | ) | (4.4 | ) | ||||||
Employee
stock option exercises
|
0.7 | 13.5 | 1.3 | |||||||||
Tax
benefit on stock option exercises
|
0.2 | 3.8 | 1.0 | |||||||||
Dividends
paid
|
(18.3 | ) | (31.8 | ) | (31.0 | ) | ||||||
Purchase
of treasury stock
|
(0.1 | ) | (2.0 | ) | (0.1 | ) | ||||||
Net
cash provided by financing activities
|
254.5 | 148.3 | 147.3 | |||||||||
Effect
of exchange rate changes on cash
|
(4.5 | ) | 0.4 | 0.4 | ||||||||
Net
increase (decrease) in cash and cash equivalents
|
(144.8 | ) | 330.1 | 9.8 | ||||||||
Cash
and cash equivalents at beginning of year
|
343.6 | 13.5 | 3.7 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 198.8 | $ | 343.6 | $ | 13.5 | ||||||
Interest paid | $ | 75.9 | $ | 58.1 | $ | 44.8 | ||||||
Income taxes paid, net of refunds | $ | 4.8 | $ | 20.6 | $ | 49.4 |
Accumulated
|
||||||||||||||||||||||||||||||||
Common
Stock
|
Other
|
|||||||||||||||||||||||||||||||
Shares
|
Par
|
Paid-in
|
Retained
|
Treasury
|
Unearned
|
Comprehensive
|
Comprehensive
|
|||||||||||||||||||||||||
Outstanding
|
Value
|
Capital
|
Earnings
|
Stock
|
Compensation
|
Income
(Loss)
|
Income
(Loss)
|
|||||||||||||||||||||||||
Balance
at January 1, 2006
|
50.3 | $ | 0.5 | $ | 385.6 | $ | 852.2 | $ | (171.7 | ) | $ | (14.8 | ) | $ | (48.3 | ) | ||||||||||||||||
Net
loss
|
(222.5 | ) | $ | (222.5 | ) | |||||||||||||||||||||||||||
Loss
on derivatives, net
|
(1.9 | ) | (1.9 | ) | ||||||||||||||||||||||||||||
Foreign
currency translation, net
|
11.6 | 11.6 | ||||||||||||||||||||||||||||||
Minimum
pension liability
adjustment, net
|
37.0 | 37.0 | ||||||||||||||||||||||||||||||
SFAS
158 transition adjustment, net
|
||||||||||||||||||||||||||||||||
Minimum
pension liability
|
15.6 | |||||||||||||||||||||||||||||||
Net
prior service credit
|
10.8 | |||||||||||||||||||||||||||||||
Net
actuarial loss
|
(11.6 | ) | ||||||||||||||||||||||||||||||
Comprehensive
loss
|
$ | (175.8 | ) | |||||||||||||||||||||||||||||
Reclassification
of unearned compensation
|
(14.8 | ) | 14.8 | |||||||||||||||||||||||||||||
Exercise
of stock options
|
||||||||||||||||||||||||||||||||
including
tax benefit
|
0.2 | 0.1 | 2.2 | |||||||||||||||||||||||||||||
Dividends
paid
|
(31.0 | ) | ||||||||||||||||||||||||||||||
Stock-based
compensation expense
|
8.7 | |||||||||||||||||||||||||||||||
Purchase
of treasury stock
|
(0.1 | ) | ||||||||||||||||||||||||||||||
Balance
at December 31, 2006
|
50.5 | 0.6 | 381.7 | 598.7 | (171.8 | ) | - | 13.2 | ||||||||||||||||||||||||
Net
income
|
37.0 | $ | 37.0 | |||||||||||||||||||||||||||||
Loss
on derivatives, net
|
(1.8 | ) | (1.8 | ) | ||||||||||||||||||||||||||||
Foreign
currency translation, net
|
18.7 | 18.7 | ||||||||||||||||||||||||||||||
SFAS
158 transition adjustment, net
|
(12.0 | ) | ||||||||||||||||||||||||||||||
Defined
benefit plans, net
|
34.3 | 34.3 | ||||||||||||||||||||||||||||||
Comprehensive
loss
|
$ | 88.2 | ||||||||||||||||||||||||||||||
Exercise
of stock options and
|
||||||||||||||||||||||||||||||||
vesting
of restricted stock,
|
||||||||||||||||||||||||||||||||
including
tax benefit
|
1.1 | 18.9 | ||||||||||||||||||||||||||||||
Dividends
paid
|
(31.8 | ) | ||||||||||||||||||||||||||||||
Stock-based
compensation expense
|
15.7 | |||||||||||||||||||||||||||||||
Purchase
of treasury stock
|
(2.0 | ) | ||||||||||||||||||||||||||||||
Balance
at December 31, 2007
|
51.6 | 0.6 | 416.3 | 591.9 | (173.8 | ) | - | 64.4 | ||||||||||||||||||||||||
Net
loss
|
(1,224.3 | ) | $ | (1,224.3 | ) | |||||||||||||||||||||||||||
Loss
on derivatives, net
|
(8.1 | ) | (8.1 | ) | ||||||||||||||||||||||||||||
Foreign
currency translation, net
|
(34.0 | ) | (34.0 | ) | ||||||||||||||||||||||||||||
Defined
benefit plans, net
|
(62.8 | ) | (62.8 | ) | ||||||||||||||||||||||||||||
Comprehensive
loss
|
$ | (1,329.2 | ) | |||||||||||||||||||||||||||||
Exercise
of stock options and
|
||||||||||||||||||||||||||||||||
vesting
of restricted stock,
|
||||||||||||||||||||||||||||||||
including
tax benefit
|
0.1 | 0.9 | ||||||||||||||||||||||||||||||
Dividends
paid
|
(2.1 | ) | (16.2 | ) | ||||||||||||||||||||||||||||
Stock-based
compensation expense
|
11.6 | |||||||||||||||||||||||||||||||
Purchase
of treasury stock
|
(0.1 | ) | ||||||||||||||||||||||||||||||
Balance
at December 31, 2008
|
51.7 | $ | 0.6 | $ | 426.7 | $ | (648.6 | ) | $ | (173.9 | ) | $ | - | $ | (40.5 | ) | ||||||||||||||||
December
31,
|
||||||||
2008
|
2007
|
|||||||
(in
millions)
|
||||||||
Raw
materials and work-in-progress
|
$ | 116.9 | $ | 230.5 | ||||
Finished
goods
|
22.8 | 52.6 | ||||||
Gross
inventories
|
139.7 | 283.1 | ||||||
Inventory
valuation reserves
|
(28.3 | ) | (40.3 | ) | ||||
Inventories,
net
|
$ | 111.4 | $ | 242.8 |
Estimated
|
December
31,
|
|||||||||||
Useful
Lives
|
2008
|
2007
|
||||||||||
(Years)
|
(in
millions)
|
|||||||||||
Land
|
- | $ | 26.1 | $ | 25.6 | |||||||
Land
improvements
|
10-15 | 14.1 | 18.1 | |||||||||
Buildings
and building improvements
|
15-40 | 279.6 | 414.4 | |||||||||
Machinery
and equipment
|
3-12 | 1,388.1 | 2,410.4 | |||||||||
Construction
in progress
|
- | 94.2 | 83.2 | |||||||||
1,802.1 | 2,951.7 | |||||||||||
Accumulated
depreciation and amortization
|
(737.9 | ) | (1,255.5 | ) | ||||||||
Property,
plant and equipment, net
|
$ | 1,064.2 | $ | 1,696.2 |
Consolidated
Statement of Operations
Year
Ended December 31, 2008
(in
millions)
|
|||||||||||||||
As
calculated using LIFO for U.S. inventories
|
Difference
between LIFO and FIFO
|
As
reported using FIFO
|
|||||||||||||
Net
sales
|
$ | 2,109.2 | $ | - | $ | 2,109.2 | |||||||||
Cost
of goods sold
|
2,966.8 | 7.6 | 2,974.4 | ||||||||||||
Gross
loss
|
(857.6 | ) | (7.6 | ) | (865.2 | ) | |||||||||
Selling
general and administrative expenses
|
185.4 | - | 185.4 | ||||||||||||
Operating
loss
|
(1,043.0 | ) | (7.6 | ) | (1,050.6 | ) | |||||||||
Other
expense, net
|
(70.7 | ) | - | (70.7 | ) | ||||||||||
Loss
before income taxes
|
(1,113.7 | ) | (7.6 | ) | (1,121.3 | ) | |||||||||
Income
tax expense
|
108.4 | (5.1 | ) | 103.3 | |||||||||||
Minority
interest
|
0.3 | - | 0.3 | ||||||||||||
Net
loss
|
$ | (1,221.8 | ) | $ | (2.5 | ) | $ | (1,224.3 | ) | ||||||
Basic
loss per share
|
$ | (23.68 | ) | $ | (0.05 | ) | $ | (23.73 | ) | ||||||
Diluted
loss per share
|
$ | (23.68 | ) | $ | (0.05 | ) | $ | (23.73 | ) |
Consolidated
Balance Sheet
December
31, 2008
(in
millions)
|
||||||||||||
As
calculated under previous accounting
|
Difference
|
As
reported
|
||||||||||
Assets
|
||||||||||||
Current
assets
|
||||||||||||
Inventories
|
$ | 103.5 | $ | 7.9 | $ | 111.4 | ||||||
Other
current assets
|
583.9 | - | 583.9 | |||||||||
Total
current assets
|
687.4 | 7.9 | 695.3 | |||||||||
GM postretirement
cost sharing asset
|
- | 221.2 | 221.2 | |||||||||
Other
assets
|
1,331.2 | - | 1,331.2 | |||||||||
Total
assets
|
$ | 2,018.6 | $ | 229.1 | $ | 2,247.7 | ||||||
Liabilities
and Stockholders’ Equity (Deficit)
|
||||||||||||
Postretirement
benefits and other long-term liabilities
|
$ | 621.6 | $ | 221.2 | $ | 842.8 | ||||||
Other
liabilities
|
1,840.6 | - | 1,840.6 | |||||||||
Total
liabilities
|
2,462.2 | 221.2 | 2,683.4 | |||||||||
Stockholders’
equity (deficit)
|
||||||||||||
Retained
earnings (accumulated deficit)
|
(656.5 | ) | 7.9 | (648.6 | ) | |||||||
Other
stockholders’ equity
|
212.9 | - | 212.9 | |||||||||
Total
stockholders’ equity (deficit)
|
(443.6 | ) | 7.9 | (435.7 | ) | |||||||
Total
liabilities and stockholders’ equity (deficit)
|
$ | 2,018.6 | $ | 229.1 | $ | 2,247.7 |
Consolidated
Statement of Cash Flows
Year
ended December 31, 2008
(in
millions)
|
||||||||||||
As
calculated using LIFO for U.S. inventories
|
Difference
between LIFO and FIFO
|
As
reported using FIFO
|
||||||||||
Operating
Activities
|
||||||||||||
Net
loss
|
$ | (1,221.8 | ) | $ | (2.5 | ) | $ | (1,224.3 | ) | |||
Adjustments
to reconcile net income to net cash
provided
by operating activities
|
||||||||||||
Deferred
income taxes
|
87.6 | (5.1 | ) | 82.5 | ||||||||
Changes
in operating assets and liabilities
|
||||||||||||
Inventories
|
45.0 | 7.6 | 52.6 | |||||||||
Other
changes in operating assets and
liabilities
|
110.1 | - | 110.1 | |||||||||
Other
adjustments
|
816.0 | - | 816.0 | |||||||||
Net
cash used in operating activities
|
(163.1 | ) | - | (163.1 | ) | |||||||
Investing
Activities
|
||||||||||||
Net
cash used in investing activities
|
(231.7 | ) | - | (231.7 | ) | |||||||
Financing
Activities
|
||||||||||||
Net
cash provided by financing activities
|
254.5 | - | 254.5 | |||||||||
Effect
of exchange rate changes on cash
|
(4.5 | ) | - | (4.5 | ) | |||||||
Net
increase in cash and cash equivalents
|
$ | (144.8 | ) | $ | - | $ | (144.8 | ) |
Consolidated
Balance Sheet
December
31, 2007
(in
millions)
|
||||||||||||
As
originally reported
|
Adjustments
|
As
adjusted and reported
|
||||||||||
Assets
|
||||||||||||
Current
assets
|
||||||||||||
Inventories
|
$ | 229.0 | $ | 13.8 | $ | 242.8 | ||||||
Deferred
income taxes
|
24.6 | (5.1 | ) | 19.5 | ||||||||
Other
current assets
|
681.0 | - | 681.0 | |||||||||
Total
current assets
|
934.6 | 8.7 | 943.3 | |||||||||
GM postretirement cost sharing asset | - | 212.5 | 212.5 | |||||||||
Other
assets
|
1,980.1 | - | 1,980.1 | |||||||||
Total
assets
|
$ | 2,914.7 | $ | 221.2 | $ | 3,135.9 | ||||||
Liabilities
and Stockholders’ Equity
|
||||||||||||
Postretirement benefits and other long-term liabilities | $ | 581.7 | $ | 212.5 | $ | 794.2 | ||||||
Other liabilities | 1,442.3 | - | 1,442.3 | |||||||||
Total
liabilities
|
2,024.0 | 212.5 | 2,236.5 | |||||||||
Stockholders’
equity
|
||||||||||||
Retained
earnings
|
583.2 | 8.7 | 591.9 | |||||||||
Other
stockholders’ equity
|
307.5 | - | 307.5 | |||||||||
Total
stockholders’ equity
|
890.7 | 8.7 | 899.4 | |||||||||
Total
liabilities and stockholders’ equity
|
$ | 2,914.7 | $ | 221.2 | $ | 3,135.9 |
Consolidated
Statement of Operations
Year
Ended December 31, 2006
(in
millions)
|
|||||||||||||||
As
originally reported
|
Adjustments
to change from LIFO to FIFO
|
As
adjusted and reported under FIFO
|
|
||||||||||||
Net
sales
|
$ | 3,191.7 | $ | - | $ | 3,191.7 | |||||||||
Cost
of goods sold
|
3,320.3 | 0.8 | 3,321.1 | ||||||||||||
Gross
loss
|
(128.6 | ) | (0.8 | ) | (129.4 | ) | |||||||||
Selling
general and administrative expenses
|
197.4 | - | 197.4 | ||||||||||||
Operating
loss
|
(326.0 | ) | (0.8 | ) | (326.8 | ) | |||||||||
Other
expense, net
|
(29.5 | ) | - | (29.5 | ) | ||||||||||
Loss
before income taxes
|
(355.5 | ) | (0.8 | ) | (356.3 | ) | |||||||||
Income
tax expense
|
(133.0 | ) | (0.3 | ) | (133.3 | ) | |||||||||
Net
loss
|
$ | (222.5 | ) | $ | (0.5 | ) | $ | (223.0 | ) | ||||||
Basic
loss per share
|
$ | (4.42 | ) | $ | (0.01 | ) | $ | (4.43 | ) | ||||||
Diluted
loss per share
|
$ | (4.42 | ) | $ | (0.01 | ) | $ | (4.43 | ) |
Consolidated
Statement of Cash Flows
Year
ended December 31, 2006
(in
millions)
|
||||||||||||
As
originally reported
|
Adjustments
to change from LIFO to FIFO
|
As
adjusted and reported under FIFO
|
||||||||||
Operating
Activities
|
||||||||||||
Net
income
|
$ | (222.5 | ) | $ | (0.5 | ) | $ | (223.0 | ) | |||
Adjustments
to reconcile net income to net cash
provided
by operating activities
|
||||||||||||
Deferred
income taxes
|
(184.0 | ) | (0.3 | ) | (184.3 | ) | ||||||
Changes
in operating assets and liabilities
|
||||||||||||
Inventories
|
1.1 | 0.8 | 1.9 | |||||||||
Other
changes in operating assets and
liabilities
|
54.6 | - | 54.6 | |||||||||
Other
adjustments
|
536.5 | - | 536.5 | |||||||||
Net
cash provided by operating activities
|
185.7 | - | 185.7 | |||||||||
Investing
Activities
|
||||||||||||
Net
cash used in investing activities
|
(323.6 | ) | - | (323.6 | ) | |||||||
Financing
Activities
|
||||||||||||
Net
cash provided by financing activities
|
147.3 | - | 147.3 | |||||||||
Effect
of exchange rate changes on cash
|
0.4 | - | 0.4 | |||||||||
Net
increase in cash and cash equivalents
|
$ | 9.8 | $ | - | $ | 9.8 |
·
|
Level 1: Observable
inputs such as quoted prices in active
markets;
|
·
|
Level 2: Inputs,
other than quoted prices in active markets, that are observable either
directly or indirectly; and
|
·
|
Level 3: Unobservable
inputs in which there is little or no market data, which require the
reporting entity to develop its own
assumptions.
|
|
a.
Recognizes and measures in its financial statements the identifiable
assets acquired, the liabilities assumed, and any noncontrolling
interest in the acquiree
|
b. Recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase | |
c.
Determines what information to disclose to enable users of the financial
statements to evaluate the nature and financial effects of the business
combination.
|
·
|
As
a result of an expanded product development focus that now includes highly
engineered all-wheel drive and rear-wheel drive applications for passenger
cars, crossover vehicles and commercial vehicles, we have increased our
total global served market by approximately
30%.
|
·
|
We
are reducing our domestic production capacity by approximately 70%, while
at the same time increasing global installed capacity by
150%.
|
·
|
In
2008, we negotiated new hourly labor agreements with the International
Association of Machinists (IAM) and International UAW at the original U.S.
locations. Pursuant to these new labor agreements, we are
converting the former fixed legacy labor cost structure of these
facilities to a highly flexible, competitive and variable cost
structure.
|
·
|
In
connection with hourly and salaried attrition programs administered in
2008, AAM reduced its global hourly and salaried workforce by more than
25% in 2008.
|
·
|
We
have also significantly reduced our inventories, amended our Revolving
Credit Facility and suspended our quarterly cash dividend program in
2009. The amendment of our Revolving Credit Facility in the
fourth quarter of 2008 extended the maturity of a portion of the facility
through 2011 and provides AAM with additional financial covenant
flexibility.
|
One-time
Termination Benefits
|
Asset
Impairment Charges
|
Indirect
Inventory Obsolescence
|
Environmental
Obligations
|
Contract Related
Costs
|
Redeployment
of Assets
|
Total
|
||||||||||||||||||||||
Accrual
as of December 31, 2006
|
$ | 36.4 | $ | - | $ | - | $ | 2.5 | $ | - | $ | - | $ | 38.9 | ||||||||||||||
Charges
|
53.1 | 11.6 | - | - | - | 14.0 | 78.7 | |||||||||||||||||||||
Cash
utilization
|
(66.6 | ) | - | - | (0.3 | ) | - | (14.0 | ) | (80.9 | ) | |||||||||||||||||
Non-cash utilization | - | (11.6 | ) | - | - | - | - | (11.6 | ) | |||||||||||||||||||
Accrual adjustments | (2.6 | ) | - | - | - | - | - | (2.6 | ) | |||||||||||||||||||
Accrual
as of December 31, 2007
|
$ | 20.3 | $ | - | $ | - | $ | 2.2 | $ | - | $ | - | $ | 22.5 | ||||||||||||||
Charges
|
233.4 | 552.6 | 46.4 | 1.0 | 10.7 | 19.6 | 863.7 | |||||||||||||||||||||
Cash
utilization
|
(202.5 | ) | - | - | (1.4 | ) | (3.6 | ) | (19.6 | ) | (227.1 | ) | ||||||||||||||||
Non-cash
utilization
|
- | (552.6 | ) | (46.4 | ) | - | (0.8 | ) | - | (599.8 | ) | |||||||||||||||||
Accrual
adjustments
|
(9.1 | ) | - | - | (1.4 | ) | (1.0 | ) | - | (11.5 | ) | |||||||||||||||||
Accrual
as of December 31, 2008
|
$ | 42.1 | $ | - | $ | - | $ | 0.4 | $ | 5.3 | $ | - | $ | 47.8 |
·
|
a
significant decline in current and projected market demand and future
customer production schedules for the major North American light truck
programs we currently support; and
|
·
|
changes
in the extent to which assets at our original U.S. locations will be used
based on long-term plant loading decisions made by management after the
new labor agreements were reached with the International
UAW.
|
·
|
the
general decline in consumer spending as a result of deteriorating global
economic conditions and uncertain credit markets, which further negatively
affected our projected future production
requirements;
|
·
|
the
announcement of accelerated customer production capacity reductions
for programs that we support;
and
|
·
|
future
sourcing and product planning decisions that were announced and
communicated by some of our customers in the third quarter of
2008 which adversely affected our Colfor Manufacturing
subsidiary.
|
December
31,
|
|||||||||
2008
|
2007
|
||||||||
(in
millions)
|
|||||||||
Revolving
credit facility
|
$ | 295.0 | $ | - | |||||
7.875%
Notes
|
300.0 | 300.0 | |||||||
5.25%
Notes, net of discount
|
249.8 | 249.8 | |||||||
2.00%
Convertible Notes
|
0.4 | 2.7 | |||||||
Term
loan due 2012
|
250.0 | 250.0 | |||||||
Foreign
credit facilities
|
36.9 | 46.7 | |||||||
Capital
lease obligations
|
7.8 | 8.9 | |||||||
Long-term
debt
|
$ | 1,139.9 | $ | 858.1 |
2009
|
$ | 21.5 | ||
2010
|
109.1 | |||
2011
|
199.7 | |||
2012
|
250.8 | |||
2013
|
3.7 | |||
Thereafter
|
555.1 | |||
Total
|
$ | 1,139.9 |
Pension
Benefits
|
OPEB
|
|||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
|||||||||||||||||||||||||||||||
U.S.
|
U.K.
|
U.S.
|
U.K.
|
U.S.
|
U.K.
|
|||||||||||||||||||||||||||||||
Discount
rate
|
6.50 | % | 5.90 | % | 6.45 | % | 5.70 | % | 6.05 | % | 5.00 | % | 6.50 | % | 6.55 | % | 6.10 | % | ||||||||||||||||||
Expected
return on plan assets
|
8.00 | % | 5.90 | % | 8.50 | % | 6.50 | % | 8.50 | % | 7.50 | % | N/A | N/A | N/A | |||||||||||||||||||||
Rate
of compensation increase
|
3.75 | % | 3.30 | % | 3.75 | % | 3.80 | % | 3.75 | % | 3.25 | % | 3.75 | % | 3.75 | % | 3.75 | % |
U.S.
|
U.K.
|
|||||||||||||||||||||||
Target
|
Target
|
|||||||||||||||||||||||
2008
|
2007
|
Allocation
|
2008
|
2007
|
Allocation
|
|||||||||||||||||||
Equity
securities
|
62.5 | % | 71.0 | % | 50% – 70 | % | 47.0 | % | 73.0 | % | 50% -70 | % | ||||||||||||
Fixed
income securities
|
32.0 | % | 25.5 | % | 30% - 50 | % | 52.0 | % | 26.0 | % | 30% - 50 | % | ||||||||||||
Hedge
funds
|
5.4 | % | 0.0 | % | 0% - 5 | % | 0.0 | % | 0.0 | % | 0% - 5 | % | ||||||||||||
Cash
|
0.1 | % | 3.5 | % | 0% - 5 | % | 1.0 | % | 1.0 | % | 0% - 5 | % | ||||||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Pension
Benefits
|
OPEB
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(in
millions)
|
(in
millions)
|
|||||||||||||||
Change
in benefit obligation
|
||||||||||||||||
Benefit
obligation at beginning of year
|
$ | 596.0 | $ | 555.3 | $ | 657.4 | $ | 599.0 | ||||||||
Service
cost
|
13.0 | 21.4 | 14.4 | 25.3 | ||||||||||||
Interest
cost
|
37.2 | 34.9 | 22.9 | 28.5 | ||||||||||||
Plan
amendments
|
- | - | (96.8 | ) | - | |||||||||||
Actuarial
gain
|
(31.8 | ) | (39.1 | ) | (15.7 | ) | (41.5 | ) | ||||||||
Change
in GM portion of OPEB obligation
|
- | - | 8.7 | 25.2 | ||||||||||||
SFAS
158 transition adjustment
|
- | 28.1 | - | 29.9 | ||||||||||||
Participant
contributions
|
1.2 | 1.4 | - | - | ||||||||||||
Special
and contractual termination benefits
|
53.4 | 16.1 | 11.0 | 16.9 | ||||||||||||
Curtailments
|
(17.9 | ) | (5.1 | ) | (36.5 | ) | (16.9 | ) | ||||||||
AAM-GM
Agreement settlement
|
- | - | (38.7 | ) | - | |||||||||||
Benefit
payments
|
(57.3 | ) | (19.2 | ) | (11.8 | ) | (9.0 | ) | ||||||||
Currency
fluctuations
|
(28.6 | ) | 2.2 | - | - | |||||||||||
Net
change
|
(30.8 | ) | 40.7 | (142.5 | ) | 58.4 | ||||||||||
Benefit
obligation at end of year
|
$ | 565.2 | $ | 596.0 | $ | 514.9 | $ | 657.4 | ||||||||
Change
in plan assets
|
||||||||||||||||
Fair
value of plan assets at beginning of year
|
$ | 516.5 | $ | 460.2 | $ | - | $ | - | ||||||||
Actual
return on plan assets
|
(130.8 | ) | 24.7 | - | - | |||||||||||
SFAS
158 transition adjustment
|
- | 27.9 | - | - | ||||||||||||
Employer
contributions
|
5.2 | 19.9 | 11.8 | 9.0 | ||||||||||||
Participant
contributions
|
1.2 | 1.4 | - | - | ||||||||||||
Benefit
payments
|
(57.3 | ) | (19.2 | ) | (11.8 | ) | (9.0 | ) | ||||||||
Currency
fluctuations
|
(24.1 | ) | 1.6 | - | - | |||||||||||
Net
change
|
(205.8 | ) | 56.3 | - | - | |||||||||||
Fair
value of plan assets at end of year
|
$ | 310.7 | $ | 516.5 | $ | - | $ | - | ||||||||
Pension
Benefits
|
OPEB
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(in
millions)
|
(in
millions)
|
|||||||||||||||
Noncurrent
assets
|
$ | - | $ | 13.3 | $ | - | $ | - | ||||||||
Current
liabilities
|
(0.8 | ) | (1.2 | ) | (14.4 | ) | (7.8 | ) | ||||||||
Noncurrent
liabilities
|
(253.7 | ) | (91.6 | ) | (500.5 | ) | (649.6 | ) | ||||||||
Net
liability at December 31
|
$ | (254.5 | ) | $ | (79.5 | ) | $ | (514.9 | ) | $ | (657.4 | ) |
Pension
Benefits
|
OPEB
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(in
millions)
|
(in
millions)
|
|||||||||||||||
Net
actuarial gain (loss)
|
$ | (133.5 | ) | $ | (4.1 | ) | $ | 46.5 | $ | 36.2 | ||||||
Net
prior service credit (cost)
|
0.7 | (15.1 | ) | 77.2 | 31.3 | |||||||||||
Total
amounts recorded
|
$ | (132.8 | ) | $ | (19.2 | ) | $ | 123.7 | $ | 67.5 |
Pension
Benefits
|
OPEB
|
|||||||||||||||||||||||
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
|||||||||||||||||||
Net
Periodic Benefit Cost
|
(in
millions)
|
(in
millions)
|
||||||||||||||||||||||
Service
cost
|
$ | 13.0 | $ | 21.4 | $ | 33.0 | $ | 14.4 | $ | 25.3 | $ | 40.2 | ||||||||||||
Interest
cost
|
37.2 | 34.9 | 33.7 | 22.9 | 28.5 | 31.7 | ||||||||||||||||||
Expected
asset return
|
(38.6 | ) | (38.3 | ) | (32.0 | ) | - | - | N/A | |||||||||||||||
Amortized
actuarial loss
|
0.2 | 1.5 | 5.0 | - | - | 5.2 | ||||||||||||||||||
Amortized
prior service cost (credit)
|
0.8 | 2.3 | 3.0 | (8.3 | ) | (3.0 | ) | (1.7 | ) | |||||||||||||||
Special
and contractual
|
||||||||||||||||||||||||
termination
benefits
|
53.4 | 16.1 | 5.4 | 11.0 | 16.9 | 0.9 | ||||||||||||||||||
Curtailments
|
(1.0 | ) | (2.9 | ) | 4.0 | (75.0 | ) | (17.4 | ) | (7.1 | ) | |||||||||||||
Settlement
|
- | - | - | (9.4 | ) | - | - | |||||||||||||||||
Net
periodic benefit cost (credit)
|
$ | 65.0 | $ | 35.0 | $ | 52.1 | $ | (44.4 | ) | $ | 50.3 | $ | 69.2 |
9.
|
STOCK-BASED
COMPENSATION
|
Weighted-
|
||||||||
Number
of
|
Average
Exercise
|
|||||||
Shares
|
Price
Per Share
|
|||||||
(in
millions, except per share data)
|
||||||||
Outstanding
at January 1, 2006
|
6.8 | $ | 23.00 | |||||
Options
granted
|
0.3 | 15.58 | ||||||
Options
exercised
|
(0.2 | ) | 5.42 | |||||
Options
canceled
|
(0.1 | ) | 28.39 | |||||
Outstanding
at December 31, 2006
|
6.8 | $ | 23.10 | |||||
Options
granted
|
0.3 | 26.02 | ||||||
Options
exercised
|
(0.9 | ) | 15.25 | |||||
Options
canceled
|
(0.1 | ) | 32.76 | |||||
Outstanding
at December 31, 2007
|
6.1 | $ | 24.16 | |||||
Options
granted
|
0.3 | 10.08 | ||||||
Options
exercised
|
(0.1 | ) | 11.47 | |||||
Options
canceled
|
(0.3 | ) | 23.45 | |||||
Outstanding
at December 31, 2008
|
6.0 | $ | 23.57 | |||||
Exercisable
at December 31, 2006
|
6.4 | $ | 23.51 | |||||
Exercisable
at December 31, 2007
|
5.5 | $ | 24.40 | |||||
Exercisable
at December 31, 2008
|
5.4 | $ | 24.42 |
Weighted-
|
Weighted-
|
Number
of
|
Weighted-
|
|||||||||||||||||||
Range
of
|
Outstanding
|
Average
Exercise
|
Average
|
Stock
Options
|
Average
Exercise
|
|||||||||||||||||
Exercise
Prices
|
Stock
Options
|
Price
Per Share
|
Contractual
Life
|
Exercisable
|
Price
Per Share
|
|||||||||||||||||
(in
millions, except per share data)
|
(in
years)
|
(in
millions, except per share data)
|
||||||||||||||||||||
$ | 4.26 | 0.3 | $ | 4.26 | 0.8 | 0.3 | $ | 4.26 | ||||||||||||||
$ | 8.85 | 0.4 | 8.85 | 2.3 | 0.4 | 8.85 | ||||||||||||||||
$ |
9.15
- $15.58
|
1.1 | 13.83 | 5.4 | 0.7 | 15.23 | ||||||||||||||||
$ | 18.40 - $23.73 | 1.2 | 23.66 | 4.1 | 1.2 | 23.66 | ||||||||||||||||
$ | 24.13 - $28.45 | 1.7 | 24.98 | 4.6 | 1.5 | 24.84 | ||||||||||||||||
$ | 32.13 - $40.83 | 1.3 | 38.56 | 5.1 | 1.3 | 38.56 | ||||||||||||||||
6.0 | $ | 23.57 | 4.2 | 5.4 | $ | 24.42 |
2008
|
2007
|
2006
|
||||||||||
Expected
volatility
|
46.10 | % | 44.26 | % | 41.31 | % | ||||||
Risk-free
interest rate
|
3.78 | % | 4.46 | % | 4.78 | % | ||||||
Dividend
yield
|
6.20 | % | 2.30 | % | 3.70 | % | ||||||
Expected
life of options
|
8
years
|
8
years
|
7
years
|
|||||||||
Weighted-average
grant-date fair value
|
$ | 2.67 | $ | 11.13 | $ | 5.33 |
Number
of
Shares/Units
|
Weighted Average Grant
Date Fair Value Per Share/Unit
|
|||||||
|
||||||||
(in
millions, except per share data)
|
||||||||
Outstanding
at January 1, 2006
|
1.0 | $ | 25.11 | |||||
Granted
|
0.9 | 15.80 | ||||||
Vested
|
* | 26.68 | ||||||
Cancelled
|
(0.1 | ) | 21.42 | |||||
Outstanding
at December 31, 2006
|
1.8 | 20.46 | ||||||
Granted
|
0.9 | 26.07 | ||||||
Vested
|
(0.2 | ) | 22.78 | |||||
Cancelled
|
(0.2 | ) | 21.90 | |||||
Outstanding
at December 31, 2007
|
2.3 | 22.33 | ||||||
Granted
|
1.0 | 18.87 | ||||||
Vested
|
(0.2 | ) | 22.59 | |||||
Cancelled
|
(0.2 | ) | 21.87 | |||||
Outstanding
at December 31, 2008
|
2.9 | $ | 21.17 |
2008
|
2007
|
2006
|
||||||||||
(in
millions)
|
||||||||||||
U.S.
loss
|
$ | (1,168.4 | ) | $ | (55.1 | ) | $ | (423.5 | ) | |||
Non
- U.S. income
|
47.1 | 72.7 | 67.2 | |||||||||
Total
income (loss) before income taxes
|
$ | (1,121.3 | ) | $ | 17.6 | $ | (356.3 | ) |
2008
|
2007
|
2006
|
||||||||||
(in
millions)
|
||||||||||||
Current
|
||||||||||||
Federal
|
$ | 6.0 | $ | 11.1 | $ | 21.1 | ||||||
Other
state and local
|
1.4 | 0.9 | (2.5 | ) | ||||||||
Foreign
|
7.7 | 6.1 | 20.7 | |||||||||
Total
current
|
15.1 | 18.1 | 39.3 | |||||||||
Deferred
|
||||||||||||
Federal
|
74.7 | (32.6 | ) | (162.5 | ) | |||||||
Other
state and local
|
3.8 | 0.6 | (6.0 | ) | ||||||||
Foreign
|
9.7 | (5.5 | ) | (4.1 | ) | |||||||
Total
deferred
|
88.2 | (37.5 | ) | (172.6 | ) | |||||||
Total
income tax expense (benefit)
|
$ | 103.3 | $ | (19.4 | ) | $ | (133.3 | ) |
2008
|
2007
|
2006
|
||||||||||
Federal
statutory
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
Foreign
income taxes
|
2.2 | (129.6 | ) | (2.9 | ) | |||||||
State
and local
|
- | 6.6 | 2.1 | |||||||||
Federal
tax credits
|
- | (29.8 | ) | 3.8 | ||||||||
Valuation
allowance
|
(44.8 | ) | - | - | ||||||||
Other
|
(1.6 | ) | 7.1 | (0.6 | ) | |||||||
Effective
income tax rate
|
(9.2 | )% | (110.7 | )% | 37.4 | % | ||||||
December
31,
|
||||||||
2008
|
2007
|
|||||||
Current
deferred tax assets
|
(in
millions)
|
|||||||
Employee
benefits
|
$ | 27.1 | $ | 18.7 | ||||
Inventory
|
20.8 | 1.5 | ||||||
Prepaid
taxes and other
|
27.8 | 6.5 | ||||||
Valuation
allowance
|
(70.0 | ) | (2.9 | ) | ||||
Total
current deferred tax assets
|
5.7 | 23.8 | ||||||
Current
deferred tax liabilities
|
||||||||
Inventory
and other
|
(13.3 | ) | (4.3 | ) | ||||
Current
deferred tax asset (liability), net
|
$ | (7.6 | ) | $ | 19.5 | |||
December
31,
|
||||||||
2008
|
2007
|
|||||||
(in
millions)
|
||||||||
U.S.
federal and state deferred tax asset, net
|
$ | 1.3 | $ | 19.7 | ||||
Other
foreign deferred tax liability, net
|
(8.9 | ) | (0.2 | ) | ||||
Current
deferred tax asset (liability), net
|
$ | (7.6 | ) | $ | 19.5 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
Noncurrent
deferred tax assets
|
(in
millions)
|
|||||||
Employee
benefits
|
$ | 246.4 | $ | 221.8 | ||||
NOL
carryforwards
|
186.7 | 32.1 | ||||||
Tax
credit carryforwards
|
30.9 | 30.7 | ||||||
Capital
allowance carryforwards
|
20.4 | 27.2 | ||||||
Deferred
revenue
|
31.7 | - | ||||||
Capitalized
expenditures
|
23.6 | 28.6 | ||||||
Other
|
9.6 | 12.9 | ||||||
Valuation
allowances
|
(511.8 | ) | (39.4 | ) | ||||
Total
noncurrent deferred tax assets
|
37.5 | 313.9 | ||||||
Noncurrent
deferred tax liabilities
|
||||||||
Fixed
assets and other
|
(21.6 | ) | (241.8 | ) | ||||
Noncurrent
deferred tax asset, net
|
$ | 15.9 | $ | 72.1 | ||||
December
31,
|
||||||||
2008
|
2007
|
|||||||
(in
millions)
|
||||||||
U.S.
federal and state deferred tax asset, net
|
$ | 6.4 | $ | 60.5 | ||||
Other
foreign deferred tax asset, net
|
9.5 | 11.6 | ||||||
Noncurrent
deferred tax asset, net
|
$ | 15.9 | $ | 72.1 |
·
|
a
significant decline in current and projected market demand and future
customer production schedules for the major North American light truck
programs we currently support;
|
·
|
long-term
plant loading decisions made by management after the new labor agreements
were reached with the International UAW;
and
|
·
|
the
impact of significant charges resulting from our restructuring actions in
2008.
|
Unrecognized
Tax
|
Interest
and
|
|||||||
Benefits
|
Penalties
|
|||||||
(in
millions)
|
||||||||
Balance
at January 1, 2007
|
$ | 27.7 | $ | 1.0 | ||||
Increase
in prior year tax positions
|
5.1 | 1.3 | ||||||
Decrease
in prior year tax positions
|
(2.1 | ) | - | |||||
Increase
in current year tax positions
|
3.3 | - | ||||||
Statute
of limitations release
|
(2.8 | ) | (0.4 | ) | ||||
Settlement
|
- | (0.1 | ) | |||||
Balance
at December 31, 2007
|
$ | 31.2 | $ | 1.8 | ||||
Increase
in prior year tax positions
|
7.0 | 3.6 | ||||||
Decrease
in prior year tax positions
|
(1.7 | ) | (0.2 | ) | ||||
Increase
in current year tax positions
|
4.4 | - | ||||||
Settlement
|
(0.3 | ) | - | |||||
Balance
at December 31, 2008
|
$ | 40.6 | $ | 5.2 |
2008
|
2007
|
2006
|
||||||||||
(in
millions, except per share data)
|
||||||||||||
Numerator
|
||||||||||||
Net
income (loss)
|
$ | (1,224.3 | ) | $ | 37.0 | $ | (223.0 | ) | ||||
Denominators
|
||||||||||||
Basic
shares outstanding -
|
||||||||||||
Weighted-average
shares outstanding
|
51.6 | 51.1 | 50.4 | |||||||||
Effect
of dilutive securities -
|
||||||||||||
Dilutive
stock-based compensation
|
- | 1.6 | - | |||||||||
Diluted
shares outstanding -
|
||||||||||||
Adjusted
weighted-average shares after assumed conversions
|
51.6 | 52.7 | 50.4 | |||||||||
Basic
EPS
|
$ | (23.73 | ) | $ | 0.72 | $ | (4.43 | ) | ||||
Diluted
EPS
|
$ | (23.73 | ) | $ | 0.70 | $ | (4.43 | ) |
December
31,
|
||||||||
2008
|
2007
|
|||||||
(in
millions)
|
||||||||
Beginning
balance
|
$ | 6.8 | $ | 3.9 | ||||
Accruals
|
0.6 | 4.1 | ||||||
Settlements
|
(0.6 | ) | (1.2 | ) | ||||
Adjustments
to prior period accruals
|
(3.5 | ) | - | |||||
Foreign
currency translation and other
|
(0.7 | ) | - | |||||
Ending
balance
|
$ | 2.6 | $ | 6.8 |
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
millions)
|
||||||||||||
Net
sales
|
||||||||||||
United
States
|
$ | 1,306.5 | $ | 2,069.0 | $ | 2,199.3 | ||||||
Canada
|
166.2 | 385.3 | 259.2 | |||||||||
Mexico
and South America
|
520.2 | 666.4 | 597.9 | |||||||||
Europe
and other
|
116.3 | 127.5 | 135.3 | |||||||||
Total
net sales
|
$ | 2,109.2 | $ | 3,248.2 | $ | 3,191.7 | ||||||
Long-lived
assets
|
||||||||||||
United
States
|
$ | 939.1 | $ | 1,507.4 | $ | 1,616.6 | ||||||
Other
|
592.7 | 606.5 | 528.8 | |||||||||
Total
long-lived assets
|
$ | 1,531.8 | $ | 2,113.9 | $ | 2,145.4 |
Three
Months Ended,
|
||||||||||||||||
March
31
|
June
30
|
September
30
|
December
31
|
|||||||||||||
(in
millions, except per share data)
|
||||||||||||||||
2008
|
||||||||||||||||
Net
sales
|
$ | 587.6 | $ | 490.5 | $ | 528.1 | $ | 503.0 | ||||||||
Gross
profit (loss)
|
12.7 | (527.9 | ) | (378.4 | ) | 28.4 | ||||||||||
Net
income (loss) (1)
|
(27.0 | ) | (644.3 | ) | (440.9 | ) | (112.1 | ) | ||||||||
Basic
EPS (2)
|
$ | (0.52 | ) | $ | (12.49 | ) | $ | (8.54 | ) | $ | (2.17 | ) | ||||
Diluted
EPS (2)
|
$ | (0.52 | ) | $ | (12.49 | ) | $ | (8.54 | ) | $ | (2.17 | ) | ||||
2007
|
||||||||||||||||
Net
sales
|
$ | 802.2 | $ | 916.5 | $ | 774.3 | $ | 755.2 | ||||||||
Gross
profit (Loss)
|
85.3 | 113.7 | 81.2 | (1.8 | ) | |||||||||||
Net
income (Loss) (1)
|
15.7 | 34.6 | 13.5 | (26.8 | ) | |||||||||||
Basic
EPS (2)
|
$ | 0.31 | $ | 0.68 | $ | 0.27 | $ | (0.52 | ) | |||||||
Diluted
EPS (2)
|
$ | 0.30 | $ | 0.66 | $ | 0.25 | $ | (0.51 | ) | |||||||
(1) Net
loss in the second, third and fourth quarters of 2008 and the fourth
quarter of 2007 includes the charges discussed in Note 3 – Labor Relations
and Note 4 - Restructuring Actions.
|
||||||||||||||||
(2) Full
year basic and diluted EPS will not necessarily agree to the sum of the
four quarters because each quarter is a separate
calculation.
|
||||||||||||||||
Condensed
Consolidating Statements of Operations
(in
millions)
|
||||||||||||||||||||
2008
|
||||||||||||||||||||
Holdings
|
AAM
Inc.
|
All
Others
|
Elims
|
Consolidated
|
||||||||||||||||
Net
sales
|
||||||||||||||||||||
External
|
$ | - | $ | 952.6 | $ | 1,156.6 | $ | - | $ | 2,109.2 | ||||||||||
Intercompany
|
- | 43.1 | 72.5 | (115.6 | ) | - | ||||||||||||||
Total
net sales
|
- | 995.7 | 1,229.1 | (115.6 | ) | 2,109.2 | ||||||||||||||
Cost
of goods sold
|
- | 1,896.4 | 1,193.6 | (115.6 | ) | 2,974.4 | ||||||||||||||
Gross
profit (loss)
|
- | (900.7 | ) | 35.5 | - | (865.2 | ) | |||||||||||||
Selling,
general and administrative expenses
|
- | 181.3 | 4.1 | - | 185.4 | |||||||||||||||
Operating
income (loss)
|
- | (1,082.0 | ) | 31.4 | - | (1,050.6 | ) | |||||||||||||
Interest
expense
|
- | (69.4 | ) | (1.0 | ) | - | (70.4 | ) | ||||||||||||
Investment
income (loss)
|
- | 3.2 | (0.7 | ) | - | 2.5 | ||||||||||||||
Other
income (expense), net
|
- | 0.4 | (3.2 | ) | - | (2.8 | ) | |||||||||||||
Income
(loss) before income taxes
|
- | (1,147.8 | ) | 26.5 | - | (1,121.3 | ) | |||||||||||||
Income
tax expense (benefit)
|
- | 107.3 | (4.0 | ) | - | 103.3 | ||||||||||||||
Minority
interest
|
- | - | 0.3 | - | 0.3 | |||||||||||||||
Loss
from equity in subsidiaries
|
(1,224.3 | ) | (19.2 | ) | - | 1,243.5 | - | |||||||||||||
Net
income (loss) before royalties and dividends
|
(1,224.3 | ) | (1,274.3 | ) | 30.8 | 1,243.5 | (1,224.3 | ) | ||||||||||||
Royalties
and dividends
|
- | 50.0 | (50.0 | ) | - | - | ||||||||||||||
Net
loss after royalties and dividends
|
$ | (1,224.3 | ) | $ | (1,224.3 | ) | $ | (19.2 | ) | $ | 1,243.5 | $ | (1,224.3 | ) | ||||||
2007
|
||||||||||||||||||||
Net
sales
|
||||||||||||||||||||
External
|
$ | - | $ | 2,174.2 | $ | 1,074.0 | $ | - | $ | 3,248.2 | ||||||||||
Intercompany
|
- | 54.1 | 98.7 | (152.8 | ) | - | ||||||||||||||
Total
net sales
|
- | 2,228.3 | 1,172.7 | (152.8 | ) | 3,248.2 | ||||||||||||||
Cost
of goods sold
|
- | 2,089.3 | 1,025.7 | (145.2 | ) | 2,969.8 | ||||||||||||||
Gross
profit
|
- | 139.0 | 147.0 | (7.6 | ) | 278.4 | ||||||||||||||
Selling,
general and administrative expenses
|
- | 194.8 | 15.6 | (7.6 | ) | 202.8 | ||||||||||||||
Operating
income (loss)
|
- | (55.8 | ) | 131.4 | - | 75.6 | ||||||||||||||
Interest
expense
|
- | (58.0 | ) | (3.6 | ) | - | (61.6 | ) | ||||||||||||
Investment
income
|
- | 7.8 | 1.5 | - | 9.3 | |||||||||||||||
Other
expense, net
|
- | (5.4 | ) | (0.3 | ) | - | (5.7 | ) | ||||||||||||
Income
(loss) before income taxes
|
- | (111.4 | ) | 129.0 | - | 17.6 | ||||||||||||||
Income
tax expense (benefit)
|
- | (40.8 | ) | 21.4 | - | (19.4 | ) | |||||||||||||
Earnings
from equity in subsidiaries
|
37.0 | 63.6 | - | (100.6 | ) | - | ||||||||||||||
Net
income (loss) before royalties and dividends
|
37.0 | (7.0 | ) | 107.6 | (100.6 | ) | 37.0 | |||||||||||||
Royalties
and dividends
|
- | 44.0 | (44.0 | ) | - | - | ||||||||||||||
Net
income after royalties and dividends
|
$ | 37.0 | $ | 37.0 | $ | 63.6 | $ | (100.6 | ) | $ | 37.0 | |||||||||
2006
|
||||||||||||||||||||
Net
sales
|
||||||||||||||||||||
External
|
$ | - | $ | 2,173.4 | $ | 1,018.3 | $ | - | $ | 3,191.7 | ||||||||||
Intercompany
|
- | 36.0 | 81.8 | (117.8 | ) | - | ||||||||||||||
Total
net sales
|
- | 2,209.4 | 1,100.1 | (117.8 | ) | 3,191.7 | ||||||||||||||
Cost
of goods sold
|
- | 2,442.3 | 990.9 | (112.1 | ) | 3,321.1 | ||||||||||||||
Gross
profit (loss)
|
- | (232.9 | ) | 109.2 | (5.7 | ) | (129.4 | ) | ||||||||||||
Selling,
general and administrative expenses
|
- | 190.6 | 12.5 | (5.7 | ) | 197.4 | ||||||||||||||
Operating
income (loss)
|
- | (423.5 | ) | 96.7 | - | (326.8 | ) | |||||||||||||
Interest
expense
|
- | (35.9 | ) | (3.1 | ) | - | (39.0 | ) | ||||||||||||
Investment
income
|
- | 0.1 | 0.1 | - | 0.2 | |||||||||||||||
Other
income, net
|
- | 6.4 | 2.9 | - | 9.3 | |||||||||||||||
Income
(loss) before income taxes
|
- | (452.9 | ) | 96.6 | - | (356.3 | ) | |||||||||||||
Income
tax benefit
|
- | (128.6 | ) | (4.7 | ) | - | (133.3 | ) | ||||||||||||
Earnings
(loss) from equity in subsidiaries
|
(223.0 | ) | 61.1 | - | 161.9 | - | ||||||||||||||
Net
income (loss) before royalties and dividends
|
(223.0 | ) | (263.2 | ) | 101.3 | 161.9 | (223.0 | ) | ||||||||||||
Royalties
and dividends
|
- | 40.2 | (40.2 | ) | - | - | ||||||||||||||
Net
income (loss) after royalties and dividends
|
$ | (223.0 | ) | $ | (223.0 | ) | $ | 61.1 | $ | 161.9 | $ | (223.0 | ) |
Condensed
Consolidating Balance Sheets
(in
millions)
|
||||||||||||||||||||
2008
|
||||||||||||||||||||
Holdings
|
AAM
Inc.
|
All
Others
|
Elims
|
Consolidated
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Current
assets
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | - | $ | 54.6 | $ | 144.2 | $ | - | $ | 198.8 | ||||||||||
Short-term
investments
|
- | 10.6 | 66.5 | - | 77.1 | |||||||||||||||
Accounts
receivable, net
|
- | 81.1 | 105.8 | - | 186.9 | |||||||||||||||
AAM-GM
Agreement receivable
|
- | 60.0 | - | - | 60.0 | |||||||||||||||
Inventories,
net
|
- | 18.8 | 92.6 | - | 111.4 | |||||||||||||||
Other
current assets
|
- | 29.7 | 31.4 | - | 61.1 | |||||||||||||||
Total
current assets
|
- | 254.8 | 440.5 | - | 695.3 | |||||||||||||||
Property,
plant and equipment, net
|
- | 393.8 | 670.4 | - | 1,064.2 | |||||||||||||||
Goodwill
|
- | - | 147.8 | - | 147.8 | |||||||||||||||
Other
assets and deferred charges
|
- | 295.7 | 44.7 | - | 340.4 | |||||||||||||||
Investment
in subsidiaries
|
- | 678.4 | - | (678.4 | ) | - | ||||||||||||||
Total
assets
|
$ | - | $ | 1,622.7 | $ | 1,303.4 | $ | (678.4 | ) | $ | 2,247.7 | |||||||||
Liabilities
and stockholders’ equity (deficit)
|
||||||||||||||||||||
Current
liabilities
|
||||||||||||||||||||
Accounts
payable
|
$ | - | $ | 121.7 | $ | 129.2 | $ | - | $ | 250.9 | ||||||||||
Other
accrued expenses
|
- | 194.7 | 72.1 | - | 266.8 | |||||||||||||||
Total
current liabilities
|
- | 316.4 | 201.3 | - | 517.7 | |||||||||||||||
Intercompany
payable (receivable)
|
316.6 | (624.3 | ) | 307.7 | - | - | ||||||||||||||
Long-term
debt
|
0.4 | 1,094.9 | 44.6 | - | 1,139.9 | |||||||||||||||
Investment in subsidiaries obligation | 118.7 | - | - | (118.7 | ) | - | ||||||||||||||
Other
long-term liabilities
|
- | 954.4 | 71.4 | - | 1,025.8 | |||||||||||||||
Total
liabilities
|
435.7 | 1,741.4 | 625.0 | (118.7 | ) | 2,683.4 | ||||||||||||||
Shareholders’
equity (deficit)
|
(435.7 | ) | (118.7 | ) | 678.4 | (559.7 | ) | (435.7 | ) | |||||||||||
Total
liabilities and shareholders’ equity (deficit)
|
$ | - | $ | 1,622.7 | $ | 1,303.4 | $ | (678.4 | ) | $ | 2,247.7 | |||||||||
2007
|
||||||||||||||||||||
Holdings
|
AAM
Inc.
|
All
Others
|
Elims
|
Consolidated
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Current
assets
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | - | $ | 223.5 | $ | 120.1 | $ | - | $ | 343.6 | ||||||||||
Accounts
receivable, net
|
- | 141.3 | 122.7 | - | 264.0 | |||||||||||||||
Inventories,
net
|
- | 123.4 | 119.4 | - | 242.8 | |||||||||||||||
Other
current assets
|
- | 23.3 | 69.6 | - | 92.9 | |||||||||||||||
Total
current assets
|
- | 511.5 | 431.8 | - | 943.3 | |||||||||||||||
Property,
plant and equipment, net
|
- | 959.8 | 736.4 | - | 1,696.2 | |||||||||||||||
Goodwill
|
- | - | 147.8 | - | 147.8 | |||||||||||||||
Other
assets and deferred charges
|
- | 334.3 | 14.3 | - | 348.6 | |||||||||||||||
Investment
in subsidiaries
|
1,190.5 | 763.7 | - | (1,954.2 | ) | - | ||||||||||||||
Total
assets
|
$ | 1,190.5 | $ | 2,569.3 | $ | 1,330.3 | $ | (1,954.2 | ) | $ | 3,135.9 | |||||||||
Liabilities
and stockholders’ equity
|
||||||||||||||||||||
Current
liabilities
|
||||||||||||||||||||
Accounts
payable
|
$ | - | $ | 174.9 | $ | 138.9 | $ | - | $ | 313.8 | ||||||||||
Other
accrued expenses
|
- | 144.3 | 53.5 | - | 197.8 | |||||||||||||||
Total
current liabilities
|
- | 319.2 | 192.4 | - | 511.6 | |||||||||||||||
Intercompany
payable (receivable)
|
288.4 | (516.0 | ) | 227.6 | - | - | ||||||||||||||
Long-term
debt
|
2.7 | 799.8 | 55.6 | - | 858.1 | |||||||||||||||
Other
long-term liabilities
|
- | 775.8 | 91.0 | - | 866.8 | |||||||||||||||
Total
liabilities
|
291.1 | 1,378.8 | 566.6 | - | 2,236.5 | |||||||||||||||
Shareholders’
equity
|
899.4 | 1,190.5 | 763.7 | (1,954.2 | ) | 899.4 | ||||||||||||||
Total
liabilities and shareholders’ equity
|
$ | 1,190.5 | $ | 2,569.3 | $ | 1,330.3 | $ | (1,954.2 | ) | $ | 3,135.9 | |||||||||
Condensed
Consolidating Statements of Cash Flows
(in
millions)
|
||||||||||||||||||||
2008
|
||||||||||||||||||||
Holdings
|
AAM
Inc.
|
All
Others
|
Elims
|
Consolidated
|
||||||||||||||||
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$ | - | $ | (329.7 | ) | $ | 166.6 | $ | - | $ | (163.1 | ) | ||||||||
Investing
activities
|
||||||||||||||||||||
Purchases
of property, plant and equipment
|
- | (54.5 | ) | (85.7 | ) | - | (140.2 | ) | ||||||||||||
Reclassification
of cash equivalents to short-term
investments
|
- | (10.6 | ) | (66.5 | ) | - | (77.1 | ) | ||||||||||||
Proceeds
from sale of property, plant and
equipment
|
- | 2.1 | 1.3 | - | 3.4 | |||||||||||||||
Other
investing activities
|
- | (10.7 | ) | (7.1 | ) | - | (17.8 | ) | ||||||||||||
Net
cash used in investing activities
|
- | (73.7 | ) | (158.0 | ) | - | (231.7 | ) | ||||||||||||
Financing
activities
|
||||||||||||||||||||
Net
debt activity
|
(2.3 | ) | 295.0 | (7.3 | ) | - | 285.4 | |||||||||||||
Intercompany
activity
|
20.7 | (48.0 | ) | 27.3 | - | - | ||||||||||||||
Debt
issuance costs
|
- | (13.4 | ) | - | - | (13.4 | ) | |||||||||||||
Payment
of dividends
|
(18.3 | ) | - | - | - | (18.3 | ) | |||||||||||||
Employee
stock option exercises,
|
||||||||||||||||||||
including
tax benefit
|
- | 0.9 | - | - | 0.9 | |||||||||||||||
Purchase
of treasury stock
|
(0.1 | ) | - | - | - | (0.1 | ) | |||||||||||||
Net
cash provided by financing activities
|
- | 234.5 | 20.0 | - | 254.5 | |||||||||||||||
Effect
of exchange rate changes on cash
|
- | - | (4.5 | ) | - | (4.5 | ) | |||||||||||||
Net
increase (decrease) in cash and cash equivalents
|
- | (168.9 | ) | 24.1 | - | (144.8 | ) | |||||||||||||
Cash
and cash equivalents at beginning of period
|
- | 223.5 | 120.1 | - | 343.6 | |||||||||||||||
Cash
and cash equivalents at end of period
|
$ | - | $ | 54.6 | $ | 144.2 | $ | - | $ | 198.8 | ||||||||||
2007
|
Holdings
|
AAM
Inc.
|
All
Others
|
Elims
|
Consolidated
|
|||||||||||||||
|
||||||||||||||||||||
Net
cash provided by operating activities
|
$ | - | $ | 136.2 | $ | 231.7 | $ | - | $ | 367.9 | ||||||||||
Investing
activities
|
||||||||||||||||||||
Purchases
of property, plant and equipment
|
- | (51.6 | ) | (134.9 | ) | - | (186.5 | ) | ||||||||||||
Net
cash used in investing activities
|
- | (51.6 | ) | (134.9 | ) | - | (186.5 | ) | ||||||||||||
Financing
activities
|
||||||||||||||||||||
Net
debt activity
|
- | 164.0 | 8.3 | - | 172.3 | |||||||||||||||
Intercompany
activity
|
33.8 | (35.4 | ) | 1.6 | - | - | ||||||||||||||
Debt
issuance costs
|
- | (7.5 | ) | - | - | (7.5 | ) | |||||||||||||
Payment
of dividends
|
(31.8 | ) | - | - | - | (31.8 | ) | |||||||||||||
Employee
stock option exercises,
|
||||||||||||||||||||
including
tax benefit
|
- | 17.3 | - | - | 17.3 | |||||||||||||||
Purchase
of treasury stock
|
(2.0 | ) | - | - | - | (2.0 | ) | |||||||||||||
Net
cash provided by financing activities
|
- | 138.4 | 9.9 | - | 148.3 | |||||||||||||||
Effect
of exchange rate changes on cash
|
- | - | 0.4 | - | 0.4 | |||||||||||||||
Net
increase in cash and cash equivalents
|
- | 223.0 | 107.1 | - | 330.1 | |||||||||||||||
Cash
and cash equivalents at beginning of period
|
- | 0.5 | 13.0 | - | 13.5 | |||||||||||||||
Cash
and cash equivalents at end of period
|
$ | - | $ | 223.5 | $ | 120.1 | $ | - | $ | 343.6 | ||||||||||
2006
|
Holdings
|
AAM
Inc.
|
All
Others
|
Elims
|
Consolidated
|
|||||||||||||||
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$ | - | $ | (121.2 | ) | $ | 306.9 | $ | - | $ | 185.7 | |||||||||
Investing
activities
|
||||||||||||||||||||
Purchases
of property, plant and equipment
|
- | (162.8 | ) | (123.8 | ) | - | (286.6 | ) | ||||||||||||
Purchase
buyouts of leased equipment, net of proceeds
|
- | (37.0 | ) | - | - | (37.0 | ) | |||||||||||||
Net
cash used in investing activities
|
- | (199.8 | ) | (123.8 | ) | - | (323.6 | ) | ||||||||||||
Financing
activities
|
||||||||||||||||||||
Net
debt activity
|
(147.3 | ) | 312.1 | 15.7 | - | 180.5 | ||||||||||||||
Intercompany
activity
|
178.3 | 11.4 | (189.7 | ) | - | |||||||||||||||
Debt
issuance costs
|
- | (4.4 | ) | - | - | (4.4 | ) | |||||||||||||
Payment
of dividends
|
(31.0 | ) | - | - | - | (31.0 | ) | |||||||||||||
Proceeds
from stock option exercises,
|
||||||||||||||||||||
including
tax benefit
|
- | 2.3 | - | - | 2.3 | |||||||||||||||
Purchase
of treasury stock
|
- | (0.1 | ) | - | - | (0.1 | ) | |||||||||||||
Net
cash provided by (used in) financing activities
|
- | 321.3 | (174.0 | ) | - | 147.3 | ||||||||||||||
Effect
of exchange rate changes on cash
|
- | - | 0.4 | - | 0.4 | |||||||||||||||
Net
increase in cash and cash equivalents
|
- | 0.3 | 9.5 | - | 9.8 | |||||||||||||||
Cash
and cash equivalents at beginning of period
|
- | 0.2 | 3.5 | - | 3.7 | |||||||||||||||
Cash
and cash equivalents at end of period
|
$ | - | $ | 0.5 | $ | 13.0 | $ | - | $ | 13.5 |
1.
|
All
Financial Statements
|
2.
|
Financial
Statement Schedules
|
3.
|
3.01
|
Amended
and Restated Certificate of
Incorporation
|
3.02
|
Bylaws
|
4.01
|
Specimen
Certificate for shares of the Company’s Common
Stock
|
|
(Incorporated
by reference to Exhibit 4.01 filed with American Axle & Manufacturing
Holdings, Inc. Registration Statement on Form S-1 (Registration No.
333-53491))
|
4.02
|
5.25%
Senior Notes due 2014, Indenture, dated as of February 11, 2004, among
AAM, Inc., as issuer, the Company, as guarantor, and BNY Midwest Trust
Company, as trustee
|
|
(Incorporated
by reference to Exhibit 4.02 filed with American Axle & Manufacturing
Holdings, Inc. Form 10-K for the year ended December 31,
2003)
|
4.03
|
Senior
Convertible Notes due 2024, Indenture, dated as of February 11, 2004,
among the Company, as issuer, AAM, Inc., as guarantor, and BNY Midwest
Trust Company, as trustee
|
|
(Incorporated
by reference to Exhibit 4.03 filed with American Axle & Manufacturing
Holdings, Inc. Form 10-K for the year ended December 31,
2003)
|
Number
|
Description
of Exhibit
|
4.04
|
7.875%
Senior Notes due 2017, Indenture, dated as of February 27, 2007, between
AAM, Inc., as issuer, the Company, as guarantor, and Bank of New York
Trust Company, N.A., as trustee.
|
10.01
|
Asset
Purchase Agreement, dated February 18, 1994, between AAM, Inc. and GM, and
all amendments thereto
|
|
(Incorporated
by reference to Exhibit 10.01 filed with American Axle & Manufacturing
Holdings, Inc. Registration Statement on Form S-1 (Registration No.
333-53491))
|
++10.02
|
Component
Supply Agreement, dated February 28, 1994, between AAM, Inc. and
GM
|
|
(Incorporated
by reference to Exhibit 10.02 filed with American Axle & Manufacturing
Holdings, Inc. Registration Statement on Form S-1 (Registration No.
333-53491))
|
10.03
|
Amendment
No. 1 to Component Supply Agreement, dated February 28, 1994, between AAM,
Inc. and GM
|
|
(Incorporated
by reference to Exhibit 10.02(a) filed with American Axle &
Manufacturing Holdings, Inc. Registration Statement on Form S-1
(Registration No. 333-53491))
|
++10.04
|
Amendment
No. 2 to Component Supply Agreement, dated February 7, 1996, between AAM,
Inc. and GM
|
|
(Incorporated
by reference to Exhibit 10.02(b) filed with American Axle &
Manufacturing Holdings, Inc. Registration Statement on Form S-1
(Registration No. 333-53491))
|
++10.05
|
Amended
and Restated Memorandum of Understanding (MOU), dated September 2, 1997,
between AAM, Inc. and GM
|
|
(Incorporated
by reference to Exhibit 10.02(f) filed with American Axle &
Manufacturing Holdings, Inc. Registration Statement on Form S-1
(Registration No. 333-53491))
|
10.06
|
MOU
Extension Agreement, dated September 22, 1997, between AAM, Inc. and
GM
|
|
(Incorporated
by reference to Exhibit 10.02(g) filed with American Axle &
Manufacturing Holdings, Inc. Registration Statement on Form S-1
(Registration No. 333-53491))
|
++10.07
|
Agreement
dated February 17, 1997, between AAM, Inc. and
GM
|
|
(Incorporated
by reference to Exhibit 10.05 filed with American Axle & Manufacturing
Holdings, Inc. Registration Statement on Form S-1 (Registration No.
333-53491))
|
++10.08
|
Letter
dated December 13, 1996, by AAM,
Inc.
|
|
(Incorporated
by reference to Exhibit 10.05(a) filed with American Axle &
Manufacturing Holdings, Inc. Registration Statement on Form S-1
(Registration No. 333-53491))
|
10.09
|
The
Amended and Restated American Axle & Manufacturing of Michigan, Inc.
Management Stock Option Plan
|
|
(Incorporated
by reference to Exhibit 10.08 filed with American Axle & Manufacturing
Holdings, Inc. Registration Statement on Form S-1 (Registration No.
333-53491))
|
10.10
|
Indemnification
Agreement, dated February 28, 1994, between AAM, Inc. and
GM
|
|
(Incorporated
by reference to Exhibit 10.10 filed with American Axle & Manufacturing
Holdings, Inc. Registration Statement on Form S-1 (Registration No.
333-53491))
|
‡10.11
|
Employment
Agreement, dated November 6, 1997, by and between the Company and Richard
E. Dauch
|
|
(Incorporated
by reference to Exhibit 10.11 filed with American Axle & Manufacturing
Holdings, Inc. Registration Statement on Form S-1 (Registration No.
333-53491))
|
Number
|
Description
of Exhibit
|
10.12
|
Letter
Agreement, dated August 18, 1997, between AAM Acquisition, Inc. and
Richard E. Dauch
|
|
(Incorporated
by reference to Exhibit 10.11(a) filed with American Axle &
Manufacturing Holdings, Inc. Registration Statement on Form S-1
(Registration No. 333-53491))
|
10.13
|
Recapitalization
Agreement, dated as of September 19, 1997, among AAM, Inc., the Company,
Jupiter Capital Corporation, Richard E. Dauch, Morton E. Harris and AAM
Acquisition, Inc.
|
|
(Incorporated
by reference to Exhibit 10.12 filed with American Axle & Manufacturing
Holdings, Inc. Registration Statement on Form S-1 (Registration No.
333-53491))
|
10.14
|
Disposition
Agreement, dated as of December 10, 1998, between American Axle &
Manufacturing of Michigan, Inc. and Richard E.
Dauch
|
|
(Incorporated
by reference to Exhibit 10.13(a) filed with American Axle &
Manufacturing Holdings, Inc. Registration Statement on Form S-1
(Registration No. 333-53491))
|
++10.15
|
Lifetime
Program Contract for New M-SUV Products, between GM and AAM,
Inc.
|
++10.16
|
Settlement
Agreement dated as of July 28, 2000 by and between AAM, Inc. and
GM
|
|
(Incorporated
by reference to Exhibit 10.01 filed with American Axle & Manufacturing
Holdings, Inc. Form 10-Q for the quarterly period ended September 30,
2000)
|
‡10.17
|
Amendment
dated December 20, 2000 to Employment Agreement dated as of November 6,
1997 by and between the Company and Richard E.
Dauch
|
|
(Incorporated
by reference to Exhibit 10.07 filed with American Axle & Manufacturing
Holdings, Inc. Form 10-K for the year ended December 31,
2000)
|
10.18
|
Lifetime
Program Contract between General Motors Corporation North American
Operations (Buyer) and AAM, Inc.
(Seller)
|
|
(Incorporated
by reference to Exhibit 10.01 filed with American Axle & Manufacturing
Holdings, Inc. Form 10-Q for the quarterly period ended June 30,
2001)
|
10.19
|
Agreement
dated as of June 14, 2001 by and between GM and AAM,
Inc.
|
|
(Incorporated
by reference to Exhibit 10.02 filed with American Axle & Manufacturing
Holdings, Inc. Form 10-Q for the quarterly period ended June 30,
2001)
|
++10.20
|
Agreement
dated as December 21, 2001 by and between GM and AAM,
Inc.
|
‡10.21
|
Second
Amendment, dated as of December 10, 2001, to the Employment Agreement,
dated as of November 6, 1997, by and between the Company and Richard E.
Dauch
|
|
(Incorporated
by reference to Exhibit 10.49 filed with American Axle & Manufacturing
Holdings, Inc. Form 10-K for the year ended December 30,
2001)
|
10.22
|
Lifetime
Program Contract for GMT-900 Products, between GM and AAM,
Inc.
|
|
(Incorporated
by reference to Exhibit 10.51 filed with American Axle & Manufacturing
Holdings, Inc. Form 10-Q for the quarterly period ended June 30,
2003)
|
10.23
|
Senior
Unsecured Revolving Credit Facility, dated as of January 9, 2004, among
the Company, AAM, Inc., the lenders named therein and JPMorgan Chase Bank,
as Administrative Agent
|
Number
|
Description
of Exhibit
|
10.24
|
Guarantee
Agreement, dated as of January 9, 2004, among the Company, AAM, Inc., the
Subsidiary Guarantors and JPMorgan Chase Bank, as Administrative
Agent
|
++10.25
|
Sourcing
Letter Agreement dated as of February 26, 2004 by and between GM and AAM,
Inc.
|
++10.26
|
Letter
Agreement dated April 22, 2004 by and between DaimlerChrysler Corporation
and AAM, Inc.
|
‡10.27
|
Forms
of Restricted Stock and Restricted Stock Unit Agreements under 1999 Stock
Incentive Plan
|
‡10.33
|
Employment
Agreement Extension between American Axle & Manufacturing Holdings,
Inc. and Richard E. Dauch dated November 3,
2005
|
‡10.34
|
Restricted
Stock Award Agreement between American Axle & Manufacturing Holdings,
Inc. and Richard E. Dauch dated November 3,
2005
|
‡10.35
|
Restricted
Stock Unit Award Agreement between American Axle & Manufacturing
Holdings, Inc. and Richard E. Dauch dated November 3,
2005
|
Number
|
Description
of Exhibit
|
‡10.36
|
Restated
1999 American Axle & Manufacturing Holdings, Inc. Stock Incentive
Compensation Plan
|
‡10.37
|
Form
of Restricted Stock Unit Award Agreement for Non-Employee
Directors
|
10.38
|
Credit
Agreement dated as of June 28, 2006, amended as of August 9, 2006, among
American Axle & Manufacturing, Inc., American Axle & Manufacturing
Holdings, Inc., and JP Morgan Chase Bank, N.A., and Bank of America,
N.A.
|
10.39
|
Amendment
to Senior Unsecured Revolving Credit Facility, dated as of January 9,
2004, amended as of December 11, 2006, among the Company, AAM, Inc., the
lenders named therein and JPMorgan Chase Bank, as Administrative
Agent
|
|
(Incorporated
by reference to Exhibit 99.1 of Current Report on Form 8-K dated December
11, 2006.)
|
‡10.40
|
Amended
and Restated American Axle & Manufacturing Holdings, Inc. Incentive
Compensation Plan for Executive
Officers
|
‡10.41
|
Employment
Agreement Amendment between American Axle & Manufacturing Holdings,
Inc. and Richard E. Dauch dated November 15,
2006
|
‡10.42
|
Amended
and Restated American Axle & Manufacturing, Inc. Supplemental
Executive Retirement Program dated as December 22,
2006
|
10.43
|
$250,000,000
Credit Agreement, dated as of June 14, 2007, by and among American Axle
& Manufacturing Holdings, Inc., American Axle & Manufacturing
Inc., the several Lenders parties thereto, Bank of America, N.A., as
Syndication Agent, JPMorgan Chase Bank, N.A., as Administrative Agent,
J.P. Morgan Securities Inc., and Banc of America Securities LLC, as Joint
Lead Arrangers and Joint
Bookrunners.
|
|
(Incorporated
by reference to Exhibit 99.1 of Current Report on Form 8-K dated June
14,2007)
|
++10.44
|
Letter
Agreement, dated June 29, 2007, between AAM and
GM
|
|
(Incorporated
by reference to Exhibit 99.1 of Current Report on Form 8-K dated June
29,2007)
|
‡10.45
|
Amendment
No. 1 dated as of July 25, 2007 to the Restricted Stock Unit Award
Agreements dated as of March 15, 2005, March 15, 2006 and March 14, 2007
between Richard E. Dauch and American Axle & Manufacturing Holdings,
Inc.
|
|
(Incorporated
by reference to Exhibit 99.1 of Current Report on Form 8-K dated July
25,2007)
|
Number
|
Description
of Exhibit
|
‡10.46
|
Form
of Restricted Stock Unit Award Agreement for Non-Employee Directors of
American Axle & Manufacturing Holdings,
Inc.
|
|
(Incorporated
by reference to Exhibit 10.1 of Current Report on Form 8-K dated February
1,2008)
|
‡10.47
|
Amendment,
dated January 31, 2008, to Employment Agreement, dated November 6, 1997,
between American Axle & Manufacturing Holdings, Inc. and Richard E.
Dauch.
|
|
(Incorporated
by reference to Exhibit 10.2 of Current Report on Form 8-K dated February
1,2008)
|
‡10.48
|
Amended
and Restated Continuity Agreement dated as of September 29, 2003, between
American Axle & Manufacturing Holdings, Inc. and Richard E.
Dauch
|
‡10.49
|
Form
of Amended and Restated Non-CEO Continuity Agreement between American Axle
& Manufacturing Holdings, Inc. and executive
officers
|
‡10.50
|
Form
of 2008 Stock Option Award Agreement for executive officers of American
Axle & Manufacturing Holdings,
Inc.
|
‡10.51
|
Form
of 2008 Restricted Stock Award Agreement for certain executive officers of
American Axle & Manufacturing Holdings, Inc. (Ratable
Vesting)
|
‡10.52
|
Form
of 2008 Restricted Stock Award Agreement for certain executive officers of
American Axle & Manufacturing Holdings, Inc. (Cliff
Vesting)
|
‡10.53
|
Form
of 2008 Performance Award Agreement for certain executive officers of
American Axle & Manufacturing Holdings,
Inc.
|
10.54
|
Agreement
between General Motors Corporation and American Axle & Manufacturing,
Inc. dated May 3, 2008, as amended May 16,
2008.
|
10.55
|
Amendment
and Restatement Agreement dated as of November 7, 2008 among American Axle
& Manufacturing Holdings, Inc., American Axle & Manufacturing,
Inc., the banks and other financial institutions indentified therein as
lenders party thereto, and JP Morgan and Chase Bank, N.A., as
Administrative Agent.
|
|
(Incorporated
by reference to Exhibit 99.1 of Current Report on Form 8-K dated November
10,2008)
|
Number
|
Description
of Exhibit
|
10.56
|
Amended
and Restated Credit Agreement dated as of January 9, 2004, as amended and
restated as of November 7, 2008, among American Axle & Manufacturing
Holdings, Inc., American Axle & Manufacturing, Inc., JPMorgan Chase
Bank, N.A., as Administrative Agent for the lenders party thereto, and
J.P. Morgan Securities Inc. and Banc of America Securities LLC, as Joint
Lead Arrangers and Joint
Bookrunners.
|
|
(Incorporated
by reference to Exhibit 99.2 of Current Report on Form 8-K dated November
10,2008)
|
10.57
|
Collateral
Agreement dated as of November 7, 2008 by and among American Axle &
Manufacturing Holdings, Inc., American Axle & Manufacturing, Inc.,
certain subsidiaries of American Axle & Manufacturing, Inc. identified
therein and JPMorgan Chase Bank, N.A., as Collateral
Agent.
|
|
(Incorporated
by reference to Exhibit 99.3 of Current Report on Form 8-K dated November
10,2008)
|
10.58
|
Form
of Guarantee Agreement under the $250.0 million Credit Agreement
dated as of June 14, 2007 among American Axle & Manufacturing
Holdings, Inc., American Axle & Manufacturing, Inc., the Lenders party
thereto, Bank of America, N.A. as Syndication Agent, JPMorgan Chase Bank,
N.A., as Administrative Agent, and J.P. Morgan Securities Inc. and Banc of
America Securities LLC as Joint Lead Arrangers and Joint
Bookrunners.
|
|
(Incorporated
by reference to Exhibit 99.4 of Current Report on Form 8-K dated November
10,2008)
|
10.59
|
Form
of Guarantee Agreement under the Credit Agreement dated as of
January 9, 2004 among American Axle & Manufacturing Holdings,
Inc., American Axle & Manufacturing, Inc., the Lenders party thereto,
JPMorgan Chase Bank, N.A., as Administrative Agent and J.P. Morgan
Securities Inc. and Banc of America Securities LLC as Joint Lead Arrangers
and Joint Bookrunners.
|
|
(Incorporated
by reference to Exhibit 99.5 of Current Report on Form 8-K dated November
10,2008)
|
‡*10.60
|
Form
of 2009 Deferred Compensation Award
Agreement
|
*12
|
Computation
of Ratio of Earnings to Fixed
Charges
|
*18
|
Preferability
Letter from Independent Registered Public Accounting
Firm
|
*21
|
Subsidiaries
of the Company
|
*23
|
Consent
of Independent Registered Public Accounting
Firm
|
*31.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities
Exchange Act
|
*31.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities
Exchange Act
|
*32
|
Certifications
of Chief Executive Officer and Chief Financial Officer Pursuant to 18
U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
Signature
|
Title
|
Date
|
||
/s/
Richard E. Dauch
|
Co-Founder,
Chairman of the Board
|
March
12, 2009
|
||
Richard
E. Dauch
|
& Chief Executive Officer | |||
/s/
Michael K. Simonte
|
Group
Vice President - Finance &
|
March
12, 2009
|
||
Michael
K. Simonte
|
Chief Financial Officer | |||
/s/
Elizabeth A. Chappell
|
Director
|
March
12, 2009
|
||
Elizabeth
A. Chappell
|
||||
/s/
Forest J. Farmer
|
Director
|
March
12, 2009
|
||
Forest
J. Farmer
|
||||
/s/
Richard C. Lappin
|
Director
|
March
12, 2009
|
||
Richard
C. Lappin
|
/s/
William P. Miller II
|
Director
|
March
12, 2009
|
||
William
P. Miller II
|
||||
/s/
Larry K. Switzer
|
Director
|
March
12, 2009
|
||
Larry
K. Switzer
|
||||
/s/
Thomas K. Walker
|
Director
|
March
12, 2009
|
||
Thomas
K. Walker
|
/s/
Dr. Henry T. Yang
|
Director
|
March
12, 2009
|
||
Dr.
Henry T. Yang
|
Additions
-
|
||||||||||||||||||||
Balance
at
|
Charged
to
|
Deductions
-
|
Balance
|
|||||||||||||||||
Beginning
of
|
Costs
and
|
See
Notes
|
At
End of
|
|||||||||||||||||
Period
|
Expenses
|
Below
|
Period
|
|||||||||||||||||
(in
millions)
|
||||||||||||||||||||
Year Ended December 31,
2006:
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
$ | 3.1 | $ | 0.7 | $ | 2.6 | (1 | ) | $ | 1.2 | ||||||||||
Allowance
for deferred taxes
|
31.2 | 13.4 | 5.6 | (2 | ) | 39.0 | ||||||||||||||
Inventory
valuation allowance
|
20.3 | 20.0 | 5.6 | (3 | ) | 34.7 | ||||||||||||||
Year Ended December 31,
2007:
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
1.2 | 1.4 | 0.4 | (1 | ) | 2.2 | ||||||||||||||
Allowance
for deferred taxes
|
39.0 | 12.7 | 9.4 | (2 | ) | 42.3 | ||||||||||||||
Inventory
valuation allowance
|
34.7 | 12.7 | 7.1 | (3 | ) | 40.3 | ||||||||||||||
Year Ended December 31,
2008:
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
2.2 | 1.9 | 0.8 | (1 | ) | 3.3 | ||||||||||||||
Allowance
for deferred taxes
|
42.3 | 551.9 | 12.4 | (2 | ) | 581.8 | ||||||||||||||
Inventory
valuation allowance
|
40.3 | 58.9 | 70.9 | (4 | ) | 28.3 | ||||||||||||||
(1)
Uncollectible accounts charged off net of recoveries.
|
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(2)
Adjustments associated with our assessment of the uncertainty of realizing
the full benefit of deferred tax
|
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assets
(principally related to acquired foreign NOLs and capital allowance
carryforwards) and currency translation.
|
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(3)
Primarily relates to inventory adjustments for physical quantity
discrepancies and write-offs of excess and obsolete
inventories.
|
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(4) Primarily relates to write-offs of excess and obsolete inventories and the classification of certain indirect inventories, and related valuation allowances, as a net noncurrent asset in 2008. |