Federal-Mogul Holdings LLC - FORM 8-K - EX-99.2 - March 14, 2013

Attached files

file filename
8-K - FORM 8-K - Federal-Mogul Holdings LLCd502820d8k.htm
EX-99.1 - EX-99.1 - Federal-Mogul Holdings LLCd502820dex991.htm

Exhibit 99.2

FEDERAL-MOGUL CORPORATION

Unaudited Pro Forma Consolidated Balance Sheet

 

     December 31, 2012  
     As Reported     Disposition(a)     Pro Forma  
     (Millions of Dollars)  
ASSETS       

Current assets:

       

Cash and equivalents

    $ 467      $ (42 )(b)    $ 425   

Accounts receivable, net

      1,396        (7 )      1,389   

Inventories, net

      1,074        (5 )      1,069   

Prepaid expenses and other current assets

      203        (8 )      195   
  

 

 

    

 

 

    

 

 

  

Total current assets

      3,140        (62 )      3,078   

Property, plant and equipment, net

      1,971        (7 )      1,964   

Goodwill and other indefinite-lived intangible assets

      1,019        (2 )      1,017   

Definite-lived intangible assets, net

      408        —          408   

Investments in non-consolidated affiliates

      240        —          240   

Other noncurrent assets

      149        —          149   
  

 

 

    

 

 

    

 

 

  
   $ 6,927      $ (71 )    $ 6,856   
  

 

 

    

 

 

    

 

 

  
LIABILITIES AND SHAREHOLDERS’ EQUITY       

Current liabilities:

       

Short-term debt, including current portion of long-term debt

    $ 94      $ —        $ 94   

Accounts payable

      751        (9 )      742   

Accrued liabilities

      423        (9 )      414   

Current portion of pensions and other postemployment benefits liability

      47        —          47   

Other current liabilities

      174        —          174   
  

 

 

    

 

 

    

 

 

  

Total current liabilities

      1,489        (18 )      1,471   

Long-term debt

      2,733        —          2,733   

Pensions and other postemployment benefits liability

      1,362        (10 )      1,352   

Long-term portion of deferred income taxes

      388        —          388   

Other accrued liabilities

      123        —          123   

Shareholders’ equity:

       

Preferred stock ($.01 par value; 90,000,000 authorized shares; none issued)

      —          —          —     

Common stock ($.01 par value; 450,100,000 authorized shares; 100,500,000 issued shares; 98,904,500 outstanding shares as of December 31, 2012)

      1        —          1   

Additional paid-in capital, including warrants

      2,150        —          2,150   

Accumulated deficit

      (559 )      (48 )(c)      (607 ) 

Accumulated other comprehensive loss

      (850 )      5        (845 ) 

Treasury stock, at cost

      (17 )      —          (17 ) 
  

 

 

    

 

 

    

 

 

  

Total Federal-Mogul shareholders’ equity

      725        (43 )      682   
  

 

 

    

 

 

    

 

 

  

Noncontrolling interests

      107        —          107   
  

 

 

    

 

 

    

 

 

  

Total shareholders’ equity

      832        (43 )      789   
  

 

 

    

 

 

    

 

 

  
   $ 6,927      $ (71 )    $ 6,856   
  

 

 

    

 

 

    

 

 

  

FEDERAL-MOGUL CORPORATION

Unaudited Pro Forma Consolidated Statement of Operations

 

     Year Ended December 31, 2012  
     As Reported     Disposition(d)     Pro Forma  
    

(Millions of Dollars,

Except Per Share Amounts)

  

Net sales

    $ 6,664      $ (71 )    $ 6,593   

Cost of products sold

      (5,753 )      79        (5,674 ) 
  

 

 

    

 

 

    

 

 

  

Gross margin

      911        8        919   

Selling, general and administrative expenses

      (712 )      6        (706 ) 

OPEB curtailment gains

      51        —          51   

Adjustment of assets to fair value

      (194 )      7        (187 ) 

Interest expense, net

      (128 )      —          (128 ) 

Amortization expense

      (49 )      —          (49 ) 

Equity earnings of non-consolidated affiliates

      34        —          34   

Restructuring expense, net

      (26 )      —          (26 ) 

Other expense, net

      (26 )      —          (26 ) 
  

 

 

    

 

 

    

 

 

  

(Loss) income before income taxes

      (139 )      21        (118 ) 

Income tax benefit (expense)

      29        —          29   
  

 

 

    

 

 

    

 

 

  

Net (loss) income

      (110 )      21        (89 ) 

Less net income attributable to noncontrolling interests

      (7 )      —          (7 ) 
  

 

 

    

 

 

    

 

 

  

Net (loss) income attributable to Federal-Mogul

    $ (117 )    $ 21      $ (96 ) 
  

 

 

    

 

 

    

 

 

  

Net (Loss) Income Per Common Share Attributable to Federal-Mogul:

       

Basic

    $ (1.18 )    $ 0.21      $ (0.97 ) 
  

 

 

    

 

 

    

 

 

  

Diluted

    $ (1.18 )    $ 0.21      $ (0.97 ) 
  

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding – basic (in millions)

      98.9        98.9        98.9   

Weighted average shares outstanding – diluted (in millions)

      99.4        99.4        99.4   

FEDERAL-MOGUL CORPORATION

Unaudited Pro Forma Consolidated Statement of Operations

 

     Year Ended December 31, 2011  
     As Reported     Disposition(d)     Pro Forma  
    

(Millions of Dollars,

Except Per Share Amounts)

  

Net sales

    $ 6,910      $ (90 )    $ 6,820   

Cost of products sold

      (5,822 )      91        (5,731 ) 
  

 

 

    

 

 

    

 

 

  

Gross margin

      1,088        1        1,089   

Selling, general and administrative expenses

      (689 )      6        (683 ) 

OPEB curtailment gains

      1        —          1   

Adjustment of assets to fair value

      (307 )      —          (307 ) 

Interest expense, net

      (127 )      —          (127 ) 

Amortization expense

      (48 )      —          (48 ) 

Equity earnings of non-consolidated affiliates

      37        —          37   

Restructuring expense, net

      (5 )      —          (5 ) 

Other expense, net

      (16 )      1        (15 ) 
  

 

 

    

 

 

    

 

 

  

(Loss) income before income taxes

      (66 )      8        (58 ) 

Income tax expense

      (17 )      —          (17 ) 
  

 

 

    

 

 

    

 

 

  

Net (loss) income

      (83 )      8        (75 ) 

Less net income attributable to noncontrolling interests

      (7 )      —          (7 ) 
  

 

 

    

 

 

    

 

 

  

Net (loss) income attributable to Federal-Mogul

    $ (90 )    $ 8      $ (82 ) 
  

 

 

    

 

 

    

 

 

  

Net (Loss) Income Per Common Share Attributable to Federal-Mogul:

       

Basic

    $ (0.91 )    $ 0.08      $ (0.83 ) 
  

 

 

    

 

 

    

 

 

  

Diluted

    $ (0.91 )    $ 0.08      $ (0.83 ) 
  

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding – basic (in millions)

      98.9        98.9        98.9   

Weighted average shares outstanding – diluted (in millions)

      99.4        99.4        99.4   

FEDERAL-MOGUL CORPORATION

Unaudited Pro Forma Consolidated Statement of Operations

 

     Year Ended December 31, 2010  
     As Reported     Disposition(d)     Pro Forma  
    

(Millions of Dollars,

Except Per Share Amounts)

  

Net sales

    $ 6,219      $ (80 )    $ 6,139   

Cost of products sold

      (5,212 )      79        (5,133 ) 
  

 

 

    

 

 

    

 

 

  

Gross margin

      1,007        (1 )      1,006   

Selling, general and administrative expenses

      (684 )      5        (679 ) 

OPEB curtailment gains

      29        —          29   

Adjustment of assets to fair value

      (2 )      —          (2 ) 

Interest expense, net

      (129 )      —          (129 ) 

Amortization expense

      (49 )      —          (49 ) 

Equity earnings of non-consolidated affiliates

      32        —          32   

Restructuring expense, net

      (8 )      1        (7 ) 

Other expense, net

      (17 )      —          (17 ) 
  

 

 

    

 

 

    

 

 

  

Income before income taxes

      179        5        184   

Income tax expense

      (12 )      —          (12 ) 
  

 

 

    

 

 

    

 

 

  

Net income

      167        5        172   

Less net income attributable to noncontrolling interests

      (6 )      —          (6 ) 
  

 

 

    

 

 

    

 

 

  

Net income attributable to Federal-Mogul

    $ 161      $ 5      $ 166   
  

 

 

    

 

 

    

 

 

  

Net Income Per Common Share Attributable to Federal-Mogul:

       

Basic

    $ 1.63      $ 0.05      $ 1.68   
  

 

 

    

 

 

    

 

 

  

Diluted

    $ 1.62      $ 0.05      $ 1.67   
  

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding – basic (in millions)

      98.9        98.9        98.9   

Weighted average shares outstanding – diluted (in millions)

      99.4        99.4        99.4   

FEDERAL-MOGUL CORPORATION

Notes to the Pro Forma Financial Statements

 

(a) To reflect the sale of F-M Sintertech as if the sale occurred on December 31, 2012.

 

(b) In connection with the sale, F-M Corp transferred $42 million in cash to Seller, inclusive of 30 million Euro in cash contributed at closing and 2 million Euro of cash on hand.

 

(c) Estimated loss on the sale of F-M Sintertech as if sold on December 31, 2012.

 

(d) To remove the operating results of F-M Sintertech as if sold on January 1, 2010.

Federal-Mogul Holdings LLC Reports