SEC Info - Uci Holdings Ltd - ‘20-F’ for 12/31/14

NOTE 22 — GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS

Certain of Holdings’ subsidiaries have guaranteed UCI International, Inc.’s obligations under the Senior Notes described in Note 10. Certain of Holdings’ subsidiaries have entered into guarantee and security arrangements in respect of UCI International, Inc.’s indebtedness under the Senior Secured Credit Facilities described in Note 10.

The financial information that follows includes condensed financial statements for (a) Holdings, which is the parent of UCI International, Inc. and a guarantor of the Senior Notes, (b) UCI International, Inc., which is the issuer of the Senior Notes and borrower under the Senior Secured Credit Facilities, (c) certain of the U.S. subsidiaries, which guarantee the Senior Notes and borrowings under the Senior Secured Credit Facilities (the “Guarantor Subsidiaries”), (d) the non-U.S. subsidiaries and certain U.S. subsidiaries which do not guarantee the Senior Notes and borrowings under the Senior Secured Credit Facilities (the “Non-Guarantor Subsidiaries”), and (e) consolidated Holdings. Also included are consolidating entries, which principally consist of eliminations of investments in consolidated subsidiaries and intercompany balances and transactions.

Separate financial statements of the Guarantor Subsidiaries are not presented because their guarantees are full and unconditional and joint and several.

Condensed Consolidating Balance Sheet

December 31, 2014

(in thousands)

C: C: C: C:


						Parent
	UCI Holdings					Guarantor		Issuer					Non-
	Limited					UCI Holdings		UCI			Guarantor		Guarantor
	Consolidated		Eliminations			Limited		International			Subsidiaries		Subsidiaries
Assets
Current assets
Cash and cash equivalents	$	44,468	$	—		$	75	$	2,626		$	31,945	$	9,822
Intercompany receivables - current		—		(255,603	)		2,071		179,121			39,306		35,105
Accounts receivable, net		216,473		—			—		—			197,306		19,167
Related party receivables		17,208		—			—		—			17,208		—
Inventories, net		230,924		—			—		—			199,400		31,524
Deferred tax assets		30,901		—			—		1,466			27,649		1,786
Other current assets		19,926		—			4		2,163			10,590		7,169

Total current assets		559,900		(255,603	)		2,150		185,376			523,404		104,573
Property, plant and equipment, net		168,834		—			—		—			123,938		44,896
Investment in subsidiaries		—		(863,410	)		128,077		624,563			110,770		—
Goodwill		308,080		—			—		—			278,571		29,509
Other intangible assets, net		310,351		—			—		—			304,895		5,456
Intercompany receivables non-current		—		(100,005	)		100,000		—			5		—
Deferred financing costs, net		11,578		—			—		11,578			—		—
Other long-term assets		1,380		—			—		—			681		699

Total assets	$	1,360,123	$	(1,219,018	)	$	230,227	$	821,517		$	1,342,264	$	185,133

Liabilities and shareholder’s equity
Current liabilities
Accounts payable	$	143,618	$	—		$	—		—			114,834		28,784
Current maturities of long-term debt		23,166		—			—		23,000			159		7
Related party payables		2,450		—			1,706		—			—		744
Intercompany payables - current		—		(255,603	)		—		3,160			220,709		31,734
Product returns liability		37,635		—			—		—			37,150		485
Interest payable		13,083		—			—		13,083			—		—
Accrued expenses and other current liabilities		50,869		—			2,940		(6,753	)		47,668		7,014

Total current liabilities		270,821		(255,603	)		4,646		32,490			420,520		68,768
Long-term debt, less current maturities		684,998		—			—		684,679			301		18
Long-term related party payables		101		—			—		—			101		—
Pension and other post-retirement liabilities		97,720		—			—		—			96,906		814
Deferred tax liabilities		78,254		—			—		(23,729	)		98,185		3,798
Intercompany payables - non-current		—		(100,005	)		—		—			100,000		5
Other long-term liabilities		2,648		—			—		—			1,688		960
Total shareholder’s equity (deficit)		225,581		(863,410	)		225,581		128,077			624,563		110,770

Total liabilities and shareholder’s equity (deficit)	$	1,360,123	$	(1,219,018	)	$	230,227	$	821,517		$	1,342,264	$	185,133

Condensed Consolidating Balance Sheet

December 31, 2013

(in thousands)


						Parent
	UCI Holdings					Guarantor		Issuer					Non-
	Limited					UCI Holdings		UCI			Guarantor		Guarantor
	Consolidated		Eliminations			Limited		International			Subsidiaries		Subsidiaries
Assets
Current assets
Cash and cash equivalents	$	76,619	$	—		$	1	$	3,026		$	57,407	$	16,185
Intercompany receivables - current		—		(237,446	)		—		191,260			25,594		20,592
Accounts receivable, net		221,872		—			—		—			203,577		18,295
Related party receivables		17,179		—			—		—			17,179		—
Inventories, net		202,412		—			—		—			173,253		29,159
Deferred tax assets		30,256		—			—		1,456			27,887		913
Other current assets		22,776		—			—		2,156			14,619		6,001

Total current assets		571,114		(237,446	)		1		197,898			519,516		91,145
Property, plant and equipment, net		168,772		—			—		—			125,462		43,310
Investment in subsidiaries		—		(966,882	)		195,733		671,628			99,521		—
Goodwill		309,703		—			—		—			278,569		31,134
Other intangible assets, net		373,433		—			—		—			366,333		7,100
Intercompany receivables non-current		—		(105,071	)		100,066		—			5,005		—
Deferred financing costs, net		14,622		—			—		14,622			—		—
Other long-term assets		4,115		—			—		—			3,344		771

Total assets	$	1,441,759	$	(1,309,399	)	$	295,800	$	884,148		$	1,397,750	$	173,460

Liabilities and shareholder’s equity
Current liabilities
Accounts payable	$	152,052	$	—		$	—		—			119,775		32,277
Current maturities of long-term debt		3,176		—			—		3,000			176		—
Related party payables		587		—			17		—			191		379
Intercompany payables - current		—		(237,446	)		—		1,317			213,079		23,050
Product returns liability		42,031		—			—		—			41,758		273
Interest payable		13,081		—			—		13,081			—		—
Accrued expenses and other current liabilities		58,665		—			1		800			51,773		6,091

Total current liabilities		269,592		(237,446	)		18		18,198			426,752		62,070
Long-term debt, less current maturities		687,860		—			—		687,379			461		20
Long-term related party payables		361		—			—		—			361		—
Pension and other post-retirement liabilities		62,256		—			—		—			61,448		808
Deferred tax liabilities		122,983		—			—		(17,162	)		135,140		5,005
Intercompany payables - non-current		—		(105,071	)		—		—			100,066		5,005
Other long-term liabilities		2,925		—			—		—			1,894		1,031
Total shareholder’s equity (deficit)		295,782		(966,882	)		295,782		195,733			671,628		99,521

Total liabilities and shareholder’s equity (deficit)	$	1,441,759	$	(1,309,399	)	$	295,800	$	884,148		$	1,397,750	$	173,460

Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited)

Twelve Months Ended December 31, 2014

(in thousands)


							Parent
	UCI Holdings						Guarantor			Issuer						Non-
	Limited						UCI Holdings			UCI			Guarantor			Guarantor
	Consolidated			Eliminations			Limited			International			Subsidiaries			Subsidiaries
Net sales	$	1,009,793		$	(166,566	)	$	—		$	—		$	951,472		$	224,887
Cost of sales		871,229			(166,566	)		—			—			845,516			192,279

Gross profit		138,564			—			—			—			105,956			32,608
Operating expenses
Selling, general and administrative		(63,218	)		—			—			(696	)		(54,392	)		(8,130	)
Amortization of acquired intangible assets		(22,167	)		—			—			—			(21,237	)		(930	)
Restructuring costs, net		(16,876	)		—			—			—			(16,762	)		(114	)
Trademark impairment loss		(38,000	)		—			—			—			(38,000	)		—
Patent litigation costs		(158	)		—			—			—			(158	)		—
Antitrust litigation costs		(44	)		—			—			—			(44	)		—

Operating (loss) income		(1,899	)		—			—			(696	)		(24,637	)		23,434
Other expense
Interest (expense) income, net		(50,454	)		—			4,878			(55,398	)		(5	)		71
Intercompany interest		—			—			2,017			22,261			(24,104	)		(174	)
Miscellaneous, net		(8,589	)		—			(2,216	)		(60	)		(6,330	)		17

(Loss) income before income taxes		(60,942	)		—			4,679			(33,893	)		(55,076	)		23,348
Income tax benefit (expense)		24,694			—			(2,470	)		13,302			20,717			(6,855	)

Net (loss) income before equity in earnings of subsidiaries		(36,248	)		—			2,209			(20,591	)		(34,359	)		16,493
Equity (deficit) in earnings of subsidiaries		—			39,830			(38,457	)		(17,866	)		16,493			—

Net (loss) income	$	(36,248	)	$	39,830		$	(36,248	)	$	(38,457	)	$	(17,866	)	$	16,493

Comprehensive (loss) income	$	(71,040	)	$	120,622		$	(86,707	)	$	(68,494	)	$	(47,903	)	$	11,442

Condensed Consolidating Statement of Comprehensive Income (Loss)

Year Ended December 31, 2013

(in thousands)


							Parent
	UCI Holdings						Guarantor			Issuer						Non-
	Limited						UCI Holdings			UCI			Guarantor			Guarantor
	Consolidated			Eliminations			Limited			International			Subsidiaries			Subsidiaries
Net sales	$	995,930		$	(125,055	)	$	—		$	—		$	937,030		$	183,955
Cost of sales		837,267			(125,055	)		—			—			797,514			164,808

Gross profit		158,663			—			—			—			139,516			19,147
Operating expenses
Selling, general and administrative		(84,655	)		—			—			(7,666	)		(67,628	)		(9,361	)
Amortization of acquired intangible assets		(22,176	)		—			—			—			(21,237	)		(939	)
Restructuring costs, net		(7,593	)		—			—			—			(6,498	)		(1,095	)
Trademark impairment loss		(2,000	)		—			—			—			(2,000	)		—
Patent litigation costs		(2,200	)		—			—			—			(2,200	)		—
Antitrust litigation costs		(198	)		—			—			—			(198	)		—

Operating income (loss)		39,841			—			—			(7,666	)		39,755			7,752
Other expense
Interest (expense) income, net		(51,453	)		—			36			(54,441	)		(13	)		2,965
Intercompany interest		—			—			66			22,273			(22,052	)		(287	)
Miscellaneous, net		(3,623	)		—			(1	)		—			(5,613	)		1,991

(Loss) income before income taxes		(15,235	)		—			101			(39,834	)		12,077			12,421
Income tax benefit (expense)		2,993			—			—			15,196			(8,504	)		(3,699	)

Net (loss) income before equity in earnings of subsidiaries		(12,242	)		—			101			(24,638	)		3,573			8,722
Equity in earnings of subsidiaries		—			(8,674	)		(12,343	)		12,295			8,722			—

Net (loss) income	$	(12,242	)	$	(8,674	)	$	(12,242	)	$	(12,343	)	$	12,295		$	8,722

Comprehensive income (loss)	$	24,621		$	(82,641	)	$	23,406		$	24,520		$	49,158		$	10,178

Condensed Consolidating Statement of Comprehensive Income (Loss)

Year Ended December 31, 2012

(in thousands)


							Parent
	UCI Holdings						Guarantor			Issuer						Non-
	Limited						UCI Holdings			UCI			Guarantor			Guarantor
	Consolidated			Eliminations			Limited			International			Subsidiaries			Subsidiaries
Net sales	$	984,497		$	(121,109	)	$	—		$	—		$	936,993		$	168,613
Cost of sales		775,238			(121,109	)		—			—			747,501			148,846

Gross profit		209,259			—			—			—			189,492			19,767
Operating expenses
Selling, general and administrative		(96,832	)		—			(3	)		(17,779	)		(69,861	)		(9,189	)
Amortization of acquired intangible assets		(22,165	)		—			—			—			(21,246	)		(919	)
Restructuring costs, net		(5,877	)		—			—			—			(2,477	)		(3,400	)
Antitrust litigation costs		(1,228	)		—			—			—			(1,228	)		—

Operating income (loss)		83,157			—			(3	)		(17,779	)		94,680			6,259
Other expense
Interest expense, net		(54,765	)		—			—			(54,708	)		(55	)		(2	)
Intercompany interest		—			—			—			22,397			(22,035	)		(362	)
Miscellaneous, net		(6,188	)		—			1			—			(6,204	)		15

Income (loss) before income taxes		22,204			—			(2	)		(50,090	)		66,386			5,910
Income tax (expense) benefit		(7,577	)		—			—			17,320			(18,771	)		(6,126	)

Net income (loss) before equity in earnings of subsidiaries		14,627			—			(2	)		(32,770	)		47,615			(216	)
Equity in earnings of subsidiaries		—			(61,812	)		14,629			47,399			(216	)		—

Net income (loss)	$	14,627		$	(61,812	)	$	14,627		$	14,629		$	47,399		$	(216	)

Comprehensive income (loss)	$	5,472		$	(67,375	)	$	27,298		$	5,474		$	38,244		$	1,831

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2014

(in thousands)


	UCI Holdings Limited Consolidated			Eliminations		Parent Guarantor UCI Holdings Limited		Issuer UCI International			Guarantor Subsidiaries			Non- Guarantor Subsidiaries
Net cash provided by (used in) operating activities	$	(18,657	)	$	—	$	74	$	(17,400	)	$	(6,245	)	$	4,914

Cash flows from investing activities:
Capital expenditures		(34,451	)		—		—		—			(28,348	)		(6,103	)
Proceeds from sale of property, plant and equipment		4,395			—		—		—			3,905			490

Net cash provided by (used in) investing activities		(30,056	)		—		—		—			(24,443	)		(5,613	)

Cash flows from financing activities:
Revolver borrowings		30,000			—		—		30,000			—			—
Revolver repayments		(10,000	)		—		—		(10,000	)		—			—
Debt repayments		(3,070	)		—		—		(3,000	)		(59	)		(11	)
Excess proceeds over net book value of long-lived assets sold to an entity under common control		839			—		—		—			839			—
Intercompany dividends received (paid)		—			—		—		—			9,446			(9,446	)
Change in intercompany indebtedness		—			—		—		—			(5,000	)		5,000

Net cash provided by (used in) financing activities		17,769			—		—		17,000			5,226			(4,457	)
Effect of exchange rate changes on cash		(1,207	)		—		—		—			—			(1,207	)

Net (decrease) increase in cash and cash equivalents		(32,151	)		—		74		(400	)		(25,462	)		(6,363	)
Cash and cash equivalents at beginning of period		76,619			—		1		3,026			57,407			16,185

Cash and cash equivalents at end of period	$	44,468		$	—	$	75	$	2,626		$	31,945		$	9,822

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2013

(in thousands)


						Parent
	UCI Holdings					Guarantor		Issuer						Non-
	Limited					UCI Holdings		UCI			Guarantor			Guarantor
	Consolidated			Eliminations		Limited		International			Subsidiaries			Subsidiaries
Net cash provided by (used in) operating activities	$	39,865		$	—	$	—	$	(55,539	)	$	81,993		$	13,411

Cash flows from investing activities:
Capital expenditures		(40,619	)		—		—		—			(33,077	)		(7,542	)
Proceeds from sale of property, plant and equipment		1,448			—		—		—			86			1,362

Net cash provided by (used in) investing activities		(39,171	)		—		—		—			(32,991	)		(6,180	)

Cash flows from financing actvities:
Debt repayments		(3,089	)		—		—		(3,000	)		(88	)		(1	)
Intercompany dividend received (paid)		—			—		—		—			5,374			(5,374	)
Change in intercompany indebtedness		—			—		—		—			(1,802	)		1,802

Net cash provided by (used in) financing activities		(3,089	)		—		—		(3,000	)		3,484			(3,573	)
Effect of exchange rate changes on cash		97			—		—		—			—			97

Net (decrease) increase in cash and cash equivalents		(2,298	)		—		—		(58,539	)		52,486			3,755
Cash and cash equivalents at beginning of period		78,917			—		1		61,565			4,921			12,430

Cash and cash equivalents at end of period	$	76,619		$	—	$	1	$	3,026		$	57,407		$	16,185

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2012

(in thousands)


						Parent
	UCI Holdings					Guarantor			Issuer						Non-
	Limited					UCI Holdings			UCI			Guarantor			Guarantor
	Consolidated			Eliminations		Limited			International			Subsidiaries			Subsidiaries
Net cash provided by (used in) operating activities	$	51,842		$	—	$	(37	)	$	(24,688	)	$	59,710		$	16,857

Cash flows from investing activities:
Capital expenditures		(36,786	)		—		—			—			(29,136	)		(7,650	)
Proceeds from sale of property, plant and equipment		1,968			—		—			—			576			1,392

Net cash used in investing activities		(34,818	)		—		—			—			(28,560	)		(6,258	)

Cash flows from financing actvities:
Issuances of debt		500			—		—			—			500			—
Debt repayments		(6,552	)		—		—			(3,000	)		(376	)		(3,176	)
Equity contribution		38			—		38			—			—			—
Intercompany dividend received (paid)		—			—		—			—			5,239			(5,239	)
Change in intercompany indebtedness		—			—		—			89,237			(87,167	)		(2,070	)

Net cash (used in) provided by financing activities		(6,014	)		—		38			86,237			(81,804	)		(10,485	)
Effect of exchange rate changes on cash		210			—		—			—			—			210

Net increase (decrease) in cash and cash equivalents		11,220			—		1			61,549			(50,654	)		324
Cash and cash equivalents at beginning of period		67,697			—		—			16			55,575			12,106

Cash and cash equivalents at end of period	$	78,917		$	—	$	1		$	61,565		$	4,921		$	12,430

This ‘20-F’ Filing	Date	Other Filings

Filed on:	3/4/15	6-K, IRANNOTICE
For Period end:	12/31/14	SD
	12/31/13	20-F, SD
	12/31/12	20-F
		List all Filings

Uci Holdings Ltd – ‘20-F’ for 12/31/14 – ‘R28’

On: Wednesday, 3/4/15, at 4:35pm ET · For: 12/31/14 · Accession #: 1193125-15-76879 · File #: 333-173626

Previous ‘20-F’: ‘20-F’ on 3/4/14 for 12/31/13 · Latest ‘20-F’: This Filing

Annual Report by a Foreign Non-Canadian Issuer — Form 20-F — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

‘R28’ — Guarantor and Non-Guarantor Financial Statements

This is an IDEA Financial Report. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

Uci Holdings Ltd – ‘20-F’ for 12/31/14 – ‘R28’

On: Wednesday, 3/4/15, at 4:35pm ET · For: 12/31/14 · Accession #: 1193125-15-76879 · File #: 333-173626

Previous ‘20-F’: ‘20-F’ on 3/4/14 for 12/31/13 · Latest ‘20-F’: This Filing

Annual Report by a Foreign Non-Canadian Issuer — Form 20-F — Sect. 13 / 15(d) – SEA’34Filing Table of Contents

‘R28’ — Guarantor and Non-Guarantor Financial Statements

This is an IDEA Financial Report. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

Annual Report by a Foreign Non-Canadian Issuer — Form 20-F — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents