Trinseo PLC - 10-K filing on 2015-03-10

Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Condensed Consolidating Balance Sheet

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)


	December 31, 2014
	Parent Guarantor		Issuers		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	904	$	2,653	$	166,106	$	51,123	$	—		$	220,786
Accounts receivable, net of allowance		—		62		207,465		393,539		—			601,066
Intercompany receivables		55		493,090		1,369,837		101,716		(1,964,698	)		—
Inventories		—		—		381,797		99,709		(7,645	)		473,861
Deferred income tax assets		—		—		5,382		6,404		—			11,786
Other current assets		—		148		6,476		8,540		—			15,164

Total current assets		959		495,953		2,137,063		661,031		(1,972,343	)		1,322,663

Investments in unconsolidated affiliates		—		—		167,658		—		—			167,658
Property, plant and equipment, net		—		—		426,905		129,792		—			556,697
Other assets
Goodwill		—		—		34,574		—		—			34,574
Other intangible assets, net		—		—		164,020		1,338		—			165,358
Investments in subsidiaries		327,100		1,327,675		595,755		—		(2,250,530	)		—
Intercompany notes receivable—noncurrent		—		1,323,401		15,664		—		(1,339,065	)		—
Deferred income tax assets—noncurrent		—		—		43,676		3,136		—			46,812
Deferred charges and other assets		—		36,899		23,398		718		1,339			62,354

Total other assets		327,100		2,687,975		877,087		5,192		(3,588,256	)		309,098

Total assets	$	328,059	$	3,183,928	$	3,608,713	$	796,015	$	(5,560,599	)	$	2,356,116

Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings	$	—	$	—	$	—	$	7,559	$	—		$	7,559
Accounts payable		46		2,323		366,882		65,441		—			434,692
Intercompany payables		6,944		888,660		522,930		546,150		(1,964,684	)		—
Income taxes payable		—		—		8,864		549		—			9,413
Deferred income tax liabilities		—		—		1,171		242		—			1,413
Accrued expenses and other current liabilities		204		52,001		55,412		13,311		—			120,928

Total current liabilities		7,194		942,984		955,259		633,252		(1,964,684	)		574,005

Noncurrent liabilities
Long-term debt		—		1,192,500		2,148		—		—			1,194,648
Intercompany notes payable—noncurrent		—		—		1,296,121		42,944		(1,339,065	)		—
Deferred income tax liabilities—noncurrent		—		2,300		16,145		8,866		—			27,311
Other noncurrent obligations		—		—		226,708		12,579		—			239,287

Total noncurrent liabilities		—		1,194,800		1,541,122		64,389		(1,339,065	)		1,461,246

Commitments and contingencies (Note 15)
Shareholders’ equity		320,865		1,046,144		1,112,332		98,374		(2,256,850	)		320,865

Total liabilities and shareholders’ equity	$	328,059	$	3,183,928	$	3,608,713	$	796,015	$	(5,560,599	)	$	2,356,116

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)


	December 31, 2013
	Parent Guarantor		Issuers		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	2	$	954	$	154,770	$	40,777	$	—		$	196,503
Accounts receivable, net of allowance		—		—		272,745		444,739		(2	)		717,482
Intercompany receivables		—		554,795		1,242,405		93,841		(1,891,041	)		—
Inventories		—		—		439,952		93,019		(2,780	)		530,191
Deferred income tax assets		—		—		5,077		4,743		—			9,820
Other current assets		—		3,954		4,386		14,410		—			22,750

Total current assets		2		559,703		2,119,335		691,529		(1,893,823	)		1,476,746

Investments in unconsolidated affiliates		—		—		155,887		—		—			155,887
Property, plant and equipment, net		—		—		476,137		130,290		—			606,427
Other assets
Goodwill		—		—		37,273		—		—			37,273
Other intangible assets, net		—		—		171,352		162		—			171,514
Investments in subsidiaries		343,429		1,232,608		615,153		—		(2,191,190	)		—
Intercompany notes receivable—noncurrent		—		1,359,637		17,739		—		(1,377,376	)		—
Deferred income tax assets—noncurrent		—		—		36,260		6,678		—			42,938
Deferred charges and other assets		—		48,801		33,607		990		598			83,996

Total other assets		343,429		2,641,046		911,384		7,830		(3,567,968	)		335,721

Total assets	$	343,431	$	3,200,749	$	3,662,743	$	829,649	$	(5,461,791	)	$	2,574,781

Liabilities and shareholder’s equity
Current liabilities
Short-term borrowings	$	—	$	3,646	$	—	$	5,108	$	—		$	8,754
Accounts payable		—		2,570		436,147		70,378		(2	)		509,093
Intercompany payables		158		763,022		550,741		576,354		(1,890,275	)		—
Income taxes payable		—		—		9,407		276		—			9,683
Deferred income tax liabilities		—		—		784		2,119		—			2,903
Accrued expenses and other current liabilities		71		58,977		66,061		11,020		—			136,129

Total current liabilities		229		828,215		1,063,140		665,255		(1,890,277	)		666,562

Noncurrent liabilities
Long-term debt		—		1,325,000		2,667		—		—			1,327,667
Intercompany notes payable—noncurrent		—		—		1,347,773		29,602		(1,377,375	)		—
Deferred income tax liabilities—noncurrent		—		1,600		17,115		8,217		—			26,932
Other noncurrent obligations		—		—		198,479		11,939		—			210,418

Total noncurrent liabilities		—		1,326,600		1,566,034		49,758		(1,377,375	)		1,565,017

Commitments and contingencies (Note 15)
Shareholder’s equity		343,202		1,045,934		1,033,569		114,636		(2,194,139	)		343,202

Total liabilities and shareholder’s equity	$	343,431	$	3,200,749	$	3,662,743	$	829,649	$	(5,461,791	)	$	2,574,781

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands)


	Year Ended December 31, 2014
	Parent Guarantor			Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	4,684,218		$	1,366,437		$	(922,694	)	$	5,127,961
Cost of sales		—			560			4,425,078			1,322,771			(917,769	)		4,830,640

Gross profit		—			(560	)		259,140			43,666			(4,925	)		297,321
Selling, general and administrative expenses		11,822			18,405			180,730			21,629			—			232,586
Equity in earnings of unconsolidated affiliates		—			—			47,749			—			—			47,749

Operating income (loss)		(11,822	)		(18,965	)		126,159			22,037			(4,925	)		112,484
Interest expense, net		—			120,910			1,535			2,478			—			124,923
Intercompany interest expense (income), net		12			(81,551	)		69,902			11,609			28			—
Loss on extinguishment of long-term debt		—			7,390			—			—			—			7,390
Other expense (income), net		6,330			17,742			(3,323	)		7,052			(17	)		27,784
Equity in loss (earnings) of subsidiaries		49,132			(59,281	)		32,878			—			(22,729	)		—

Income (loss) before income taxes		(67,296	)		(24,175	)		25,167			898			17,793			(47,613	)
Provision for (benefit from) income taxes		36			1,409			15,004			4,011			(741	)		19,719

Net income (loss)	$	(67,332	)	$	(25,584	)	$	10,163		$	(3,113	)	$	18,534		$	(67,332	)

Comprehensive income (loss)	$	(230,927	)	$	(189,179	)	$	(150,388	)	$	(6,157	)	$	345,724		$	(230,927	)


	Year Ended December 31, 2013
	Parent Guarantor			Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	4,793,183		$	1,476,538		$	(962,307	)	$	5,307,414
Cost of sales		—			996			4,485,470			1,427,391			(964,453	)		4,949,404

Gross profit		—			(996	)		307,713			49,147			2,146			358,010
Selling, general and administrative expenses		10,073			3,981			181,756			21,048			—			216,858
Equity in earnings of unconsolidated affiliates		—			—			39,138			—			—			39,138

Operating income (loss)		(10,073	)		(4,977	)		165,095			28,099			2,146			180,290
Interest expense, net		—			125,711			3,656			2,671			—			132,038
Intercompany interest expense (income), net		7			(88,851	)		76,042			12,803			(1	)		—
Loss on extinguishment of long-term debt		—			20,744			—			—			—			20,744
Other expense (income), net		6			(32,325	)		39,534			20,647			15			27,877
Equity in loss (earnings) of subsidiaries		12,128			(44,373	)		(3,346	)		—			35,591			—

Income (loss) before income taxes		(22,214	)		14,117			49,209			(8,022	)		(33,459	)		(369	)
Provision for (benefit from) income taxes		4			1,735			16,964			2,593			553			21,849

Net income (loss)	$	(22,218	)	$	12,382		$	32,245		$	(10,615	)	$	(34,012	)	$	(22,218	)

Comprehensive income (loss)	$	41,587		$	76,187		$	91,240		$	(5,805	)	$	(161,622	)	$	41,587

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands)


	Year Ended December 31, 2012
	Parent Guarantor			Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	4,947,970		$	1,613,401		$	(1,109,462	)	$	5,451,909
Cost of sales		—			279			4,691,834			1,532,264			(1,109,189	)		5,115,188

Gross profit		—			(279	)		256,136			81,137			(273	)		336,721
Selling, general and administrative expenses		7,374			3,994			147,454			23,247			—			182,069
Equity in earnings of unconsolidated affiliates		—			—			27,140			—			—			27,140

Operating income (loss)		(7,374	)		(4,273	)		135,822			57,890			(273	)		181,792
Interest expense, net		—			104,069			917			4,985			—			109,971
Intercompany interest expense (income), net		1			(88,245	)		76,510			11,782			(48	)		—
Other expense (income), net		4			(20,515	)		21,376			23,125			(11	)		23,979
Equity in loss (earnings) of subsidiaries		(37,661	)		(53,200	)		(75,950	)		—			166,811			—

Income (loss) before income taxes		30,282			53,618			112,969			17,998			(167,025	)		47,842
Provision for (benefit from) income taxes		—			(808	)		22,159			(3,739	)		(52	)		17,560

Net income (loss)	$	30,282		$	54,426		$	90,810		$	21,737		$	(166,973	)	$	30,282

Comprehensive income (loss)	$	1,667		$	25,811		$	59,111		$	24,821		$	(109,743	)	$	1,667

Supplemental Condensed Consolidating Statement of Cash Flows

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)


	Year Ended December 31, 2014
	Parent Guarantor			Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Cash provided by (used in) operating activities	$	(1,079	)	$	(58,667	)	$	107,137		$	81,641		$	(11,811	)	$	117,221
Cash flows from investing activities
Capital expenditures		—			—			(85,021	)		(13,585	)		—			(98,606	)
Proceeds from the sale of businesses and other assets		—			—			—			6,257			—			6,257
Payment for working capital adjustment from sale of business		—			—			(700	)		—			—			(700	)
Distributions from unconsolidated affiliates		—			—			978			—			—			978
Investments in subsidiaries		(196,400	)		(199,400	)		(196,626	)		—			592,426			—
Intercompany investing activities		—			2,462			(181,036	)		—			178,574			—
(Increase) / decrease in restricted cash		—			—			(533	)		—			—			(533	)

Cash provided by (used in) investing activities		(196,400	)		(196,938	)		(462,938	)		(7,328	)		771,000			(92,604	)

Cash flows from financing activities
Proceeds from initial public offering, net of offering costs		198,087			—			—			—			—			198,087
Intercompany short-term borrowings, net		295			14,254			(34,986	)		(927	)		21,364			—
Short-term borrowings, net		—			(3,646	)		(273	)		(52,982	)		—			(56,901	)
Contributions from parent companies		—			189,400			395,800			7,226			(592,426	)		—
Distributions to parent companies		—			—			—			(11,811	)		11,811			—
Repayments of Senior Notes		—			(132,500	)		—			—			—			(132,500	)
Proceeds from (repayments of) intercompany long-term debt		—			189,400			13,000			(2,462	)		(199,938	)		—
Proceeds from Accounts Receivable Securitization Facility		—			—			—			308,638			—			308,638
Repayments of Accounts Receivable Securitization Facility		—			—			—			(309,205	)		—			(309,205	)

Cash provided by (used in) financing activities		198,382			256,908			373,541			(61,523	)		(759,189	)		8,119
Effect of exchange rates on cash		(1	)		396			(6,404	)		(2,444	)		—			(8,453	)

Net change in cash and cash equivalents		902			1,699			11,336			10,346			—			24,283
Cash and cash equivalents—beginning of period		2			954			154,770			40,777			—			196,503

Cash and cash equivalents—end of period	$	904		$	2,653		$	166,106		$	51,123		$	—		$	220,786

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)


	Year Ended December 31, 2013
	Parent Guarantor			Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Cash provided by (used in) operating activities	$	(78	)	$	27,101		$	34,470		$	149,842		$	—		$	211,335
Cash flows from investing activities
Capital expenditures		—			—			(61,573	)		(11,971	)		—			(73,544	)
Proceeds from capital expenditures subsidy		—			—			18,769			—			—			18,769
Proceeds from the sale of businesses and assets		—			—			15,221			—			—			15,221
Advance payment refunded		—			—			—			(2,711	)		—			(2,711	)
Distributions from unconsolidated affiliates		—			—			1,055			—			—			1,055
Intercompany investing activities		—			(4,000	)		(43,012	)		—			47,012			—
Decrease in restricted cash		—			—			—			7,852			—			7,852

Cash provided by (used in) investing activities		—			(4,000	)		(69,540	)		(6,830	)		47,012			(33,358	)

Cash flows from financing activities
Deferred financing fees		—			(47,488	)		(767	)		—			—			(48,255	)
Intercompany short-term borrowings, net		77			37,793			5,991			(849	)		(43,012	)		—
Short-term borrowings, net		—			(7,727	)		(267	)		(34,883	)		—			(42,877	)
Proceeds from issuance of intercompany long-term debt		—			—			—			4,000			(4,000	)		—
Repayments of Term Loans		—			(1,239,000	)		—			—			—			(1,239,000	)
Proceeds from issuance of Senior Notes		—			1,325,000			—			—			—			1,325,000
Proceeds from issuance of Accounts Receivable Securitization Facility		—			—			—			376,630			—			376,630
Repayments of Accounts Receivable Securitization Facility		—			—			—			(471,696	)		—			(471,696	)
Proceeds from the draw of revolving debt		—			405,000			—			—			—			405,000
Repayments on the revolving debt		—			(525,000	)		—			—			—			(525,000	)

Cash provided by (used in) financing activities		77			(51,422	)		4,957			(126,798	)		(47,012	)		(220,198	)
Effect of exchange rates on cash		—			(136	)		2,795			(292	)		—			2,367

Net change in cash and cash equivalents		(1	)		(28,457	)		(27,318	)		15,922			—			(39,854	)
Cash and cash equivalents—beginning of period		3			29,411			182,088			24,855			—			236,357

Cash and cash equivalents—end of period	$	2		$	954		$	154,770		$	40,777		$	—		$	196,503

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)


	Year Ended December 31, 2012
	Parent Guarantor			Issuers			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Cash provided by (used in) operating activities	$	(48	)	$	7,865		$	113,446		$	64,852		$	—		$	186,115
Cash flows from investing activities
Capital expenditures		—			—			(110,746	)		(7,758	)		—			(118,504	)
Proceeds from capital expenditures subsidy		—			—			6,079			—			—			6,079
Proceeds from the sale of property, plant and equipment		—			—			206			47			—			253
Advance payment received		—			—			—			2,602			—			2,602
Investments in subsidiaries		(162,155	)		—			(22,155	)		—			184,310			—
Intercompany investing activities		—			144,463			68,268			—			(212,731	)		—
Increase in restricted cash		—			—			—			(7,725	)		—			(7,725	)

Cash provided by (used in) investing activities		(162,155	)		144,463			(58,348	)		(12,834	)		(28,421	)		(117,295	)

Cash flows from financing activities
Deferred financing fees		—			(7,392	)		(688	)		—			—			(8,080	)
Intercompany short-term borrowings, net		51			(49,818	)		1,444			(18,625	)		66,948			—
Short-term borrowings, net		—			(4,159	)		(407	)		(33,321	)		—			(37,887	)
Contributions from parent companies		—			22,155			162,155			—			(184,310	)		—
Capital contributions from shareholder		162,155			—			—			—			—			162,155
Repayments of intercompany indebtedness		—			—			(144,183	)		(1,600	)		145,783			—
Repayments of Term Loans		—			(147,000	)		—			—			—			(147,000	)
Proceeds from issuance of Accounts Receivable Securitization Facility		—			—			—			113,828			—			113,828
Repayments of Accounts Receivable Securitization Facility		—			—			—			(130,233	)		—			(130,233	)
Proceeds from the draw of revolving debt		—			1,105,000			—			—			—			1,105,000
Repayments on the revolving debt		—			(1,135,000	)		—			—			—			(1,135,000	)

Cash provided by (used in) financing activities		162,206			(216,214	)		18,321			(69,951	)		28,421			(77,217	)
Effect of exchange rates on cash		—			16			246			(821	)		—			(559	)

Net change in cash and cash equivalents		3			(63,870	)		73,665			(18,754	)		—			(8,956	)
Cash and cash equivalents—beginning of period		—			93,281			108,423			43,609			—			245,313

Cash and cash equivalents—end of period	$	3		$	29,411		$	182,088		$	24,855		$	—		$	236,357