Quarterly Report (10-q)

Date : 11/01/2019 @ 6:10PM
Source : Edgar (US Regulatory)
Stock : American Axle and Manufacturing Holdings Inc (AXL)
Quote : 9.28  -0.03 (-0.32%) @ 4:23PM
American Axle and Manufa... share price Chart

Quarterly Report (10-q)

false--12-31Q320190001062231AMERICAN AXLE & MANUFACTURING HOLDINGS INC0.010.01150000000150000000118900000120100000870000008700000087000000500000170000011000007300000300000480000030000020000090000080000003700000210000009000001700000760000018000002000007600000150000010000045000001000001200000100000360000020000072000007600000 0001062231 2019-01-01 2019-09-30 0001062231 2019-10-29 0001062231 2018-01-01 2018-09-30 0001062231 2019-07-01 2019-09-30 0001062231 2018-07-01 2018-09-30 0001062231 2018-12-31 0001062231 2019-09-30 0001062231 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-07-01 2018-09-30 0001062231 axl:AccountingStandardUpdate201802Member 2019-01-01 2019-01-01 0001062231 us-gaap:OtherIncomeMember 2019-07-01 2019-09-30 0001062231 us-gaap:CostOfSalesMember 2018-01-01 2018-09-30 0001062231 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-07-01 2019-09-30 0001062231 us-gaap:InterestExpenseMember 2018-07-01 2018-09-30 0001062231 us-gaap:CostOfSalesMember 2019-07-01 2019-09-30 0001062231 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-01-01 2018-09-30 0001062231 us-gaap:CostOfSalesMember 2019-01-01 2019-09-30 0001062231 us-gaap:CostOfSalesMember 2018-07-01 2018-09-30 0001062231 us-gaap:OtherIncomeMember 2019-01-01 2019-09-30 0001062231 us-gaap:InterestExpenseMember 2019-01-01 2019-09-30 0001062231 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-09-30 0001062231 us-gaap:OtherIncomeMember 2018-01-01 2018-09-30 0001062231 us-gaap:InterestExpenseMember 2018-01-01 2018-09-30 0001062231 us-gaap:OtherIncomeMember 2018-07-01 2018-09-30 0001062231 us-gaap:InterestExpenseMember 2019-07-01 2019-09-30 0001062231 2018-09-30 0001062231 2017-12-31 0001062231 us-gaap:NoncontrollingInterestMember 2018-06-30 0001062231 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001062231 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001062231 2018-06-30 0001062231 us-gaap:CommonStockMember 2018-06-30 0001062231 us-gaap:RetainedEarningsMember 2018-09-30 0001062231 us-gaap:RetainedEarningsMember 2018-03-31 0001062231 us-gaap:NoncontrollingInterestMember 2018-07-01 2018-09-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001062231 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001062231 2018-04-01 2018-06-30 0001062231 us-gaap:TreasuryStockMember 2018-03-31 0001062231 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-03-31 0001062231 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001062231 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001062231 us-gaap:CommonStockMember 2018-03-31 0001062231 us-gaap:TreasuryStockMember 2018-07-01 2018-09-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001062231 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001062231 us-gaap:NoncontrollingInterestMember 2018-03-31 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001062231 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001062231 us-gaap:NoncontrollingInterestMember 2017-12-31 0001062231 us-gaap:NoncontrollingInterestMember 2018-09-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0001062231 us-gaap:TreasuryStockMember 2018-06-30 0001062231 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001062231 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001062231 us-gaap:TreasuryStockMember 2018-01-01 2018-03-31 0001062231 us-gaap:CommonStockMember 2018-09-30 0001062231 2018-01-01 2018-03-31 0001062231 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001062231 us-gaap:TreasuryStockMember 2018-09-30 0001062231 us-gaap:RetainedEarningsMember 2018-06-30 0001062231 us-gaap:TreasuryStockMember 2017-12-31 0001062231 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001062231 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001062231 2018-03-31 0001062231 us-gaap:RetainedEarningsMember 2017-12-31 0001062231 us-gaap:CommonStockMember 2017-12-31 0001062231 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001062231 us-gaap:RetainedEarningsMember 2018-12-31 0001062231 us-gaap:NoncontrollingInterestMember 2019-09-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001062231 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001062231 2019-06-30 0001062231 axl:ASU201802Member us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001062231 axl:ASU201802Member us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001062231 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001062231 us-gaap:TreasuryStockMember 2019-09-30 0001062231 us-gaap:RetainedEarningsMember 2019-06-30 0001062231 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001062231 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001062231 us-gaap:NoncontrollingInterestMember 2019-03-31 0001062231 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001062231 us-gaap:CommonStockMember 2018-12-31 0001062231 us-gaap:TreasuryStockMember 2019-06-30 0001062231 us-gaap:TreasuryStockMember 2018-12-31 0001062231 us-gaap:NoncontrollingInterestMember 2018-12-31 0001062231 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001062231 us-gaap:CommonStockMember 2019-09-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001062231 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001062231 2019-01-01 2019-03-31 0001062231 axl:ASU201602Member us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001062231 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0001062231 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001062231 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001062231 us-gaap:CommonStockMember 2019-03-31 0001062231 us-gaap:TreasuryStockMember 2019-03-31 0001062231 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001062231 2019-03-31 0001062231 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001062231 us-gaap:RetainedEarningsMember 2019-09-30 0001062231 us-gaap:CommonStockMember 2019-06-30 0001062231 us-gaap:NoncontrollingInterestMember 2019-06-30 0001062231 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001062231 us-gaap:RetainedEarningsMember 2019-03-31 0001062231 2019-04-01 2019-06-30 0001062231 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001062231 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0001062231 us-gaap:CashAndCashEquivalentsMember srt:ScenarioForecastMember 2019-10-01 2019-12-31 0001062231 srt:ScenarioForecastMember 2019-10-01 2019-12-31 0001062231 axl:Twelveyeardeferredpaymentobligationat6Member srt:ScenarioForecastMember 2019-10-01 2019-12-31 0001062231 srt:ScenarioForecastMember 2019-01-01 2019-12-31 0001062231 axl:PostretirementbenefitsandotherlongtermliabilitiesMember 2019-09-30 0001062231 axl:OtherAssetsandDeferredChargesMember 2019-09-30 0001062231 us-gaap:PropertyPlantAndEquipmentMember 2019-09-30 0001062231 axl:AccruedexpensesandotherMember 2019-09-30 0001062231 axl:OperatingleaseMember 2019-09-30 0001062231 axl:FinanceLeaseMember 2019-09-30 0001062231 us-gaap:OtherRestructuringMember 2019-01-01 2019-09-30 0001062231 us-gaap:EmployeeSeveranceMember 2018-01-01 2018-09-30 0001062231 us-gaap:FacilityClosingMember 2017-12-31 0001062231 us-gaap:FacilityClosingMember 2019-01-01 2019-09-30 0001062231 us-gaap:OtherRestructuringMember 2018-09-30 0001062231 us-gaap:FacilityClosingMember 2018-09-30 0001062231 us-gaap:EmployeeSeveranceMember 2019-01-01 2019-09-30 0001062231 us-gaap:OtherRestructuringMember 2018-01-01 2018-09-30 0001062231 us-gaap:EmployeeSeveranceMember 2019-09-30 0001062231 us-gaap:OtherRestructuringMember 2017-12-31 0001062231 us-gaap:FacilityClosingMember 2018-01-01 2018-09-30 0001062231 us-gaap:EmployeeSeveranceMember 2018-09-30 0001062231 us-gaap:OtherRestructuringMember 2019-09-30 0001062231 us-gaap:FacilityClosingMember 2018-12-31 0001062231 us-gaap:EmployeeSeveranceMember 2017-12-31 0001062231 us-gaap:OtherRestructuringMember 2018-12-31 0001062231 us-gaap:EmployeeSeveranceMember 2018-12-31 0001062231 us-gaap:FacilityClosingMember 2019-09-30 0001062231 axl:A2016RestructuringPlanEmployeeSeveranceMember 2016-10-01 2019-09-30 0001062231 srt:MinimumMember 2019-12-31 0001062231 srt:MaximumMember 2019-12-31 0001062231 axl:A2016RestructuringPlanOtherRestructuringMember 2016-10-01 2019-09-30 0001062231 axl:CustomerPlatformsIntangibleAssetsMember 2018-12-31 0001062231 us-gaap:ComputerSoftwareIntangibleAssetMember 2018-12-31 0001062231 axl:CustomerRelationshipsIntangibleAssetsMember 2019-09-30 0001062231 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-12-31 0001062231 axl:CustomerPlatformsIntangibleAssetsMember 2019-09-30 0001062231 us-gaap:ComputerSoftwareIntangibleAssetMember 2019-09-30 0001062231 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-09-30 0001062231 axl:CustomerRelationshipsIntangibleAssetsMember 2018-12-31 0001062231 2019-12-31 0001062231 axl:DrivelineMember 2019-01-01 2019-09-30 0001062231 axl:CastingMember 2019-09-30 0001062231 axl:MetalFormingMember 2019-01-01 2019-09-30 0001062231 axl:CastingMember 2019-01-01 2019-09-30 0001062231 axl:DrivelineMember 2018-12-31 0001062231 axl:MetalFormingMember 2018-12-31 0001062231 axl:PowertrainMember 2019-09-30 0001062231 axl:PowertrainMember 2018-12-31 0001062231 axl:CastingMember 2018-12-31 0001062231 axl:DrivelineMember 2019-09-30 0001062231 axl:PowertrainMember 2019-01-01 2019-09-30 0001062231 axl:MetalFormingMember 2019-09-30 0001062231 us-gaap:ForeignLineOfCreditMember 2018-12-31 0001062231 axl:AamIncMember axl:TermLoanAMember 2017-04-06 2017-04-06 0001062231 axl:TermLoanADue2024Member us-gaap:SecuredDebtMember 2019-07-29 0001062231 axl:A775NotesMember us-gaap:UnsecuredDebtMember 2019-09-30 0001062231 us-gaap:ForeignLineOfCreditMember 2019-09-30 0001062231 axl:TermLoanATermLoanBMember us-gaap:SecuredDebtMember 2019-07-01 2019-09-30 0001062231 axl:A775NotesMember us-gaap:UnsecuredDebtMember 2019-01-01 2019-09-30 0001062231 axl:AamIncMember axl:MultiCurrencyCreditFacilityMember 2017-04-06 0001062231 axl:A775NotesMember 2019-09-30 0001062231 axl:AamIncMember axl:TermLoanBMember 2017-04-06 2017-04-06 0001062231 us-gaap:RevolvingCreditFacilityMember 2019-09-30 0001062231 us-gaap:CapitalLeaseObligationsMember 2019-09-30 0001062231 axl:A6.50NotesMember us-gaap:UnsecuredDebtMember 2019-09-30 0001062231 axl:A6625NotesMember us-gaap:UnsecuredDebtMember 2019-09-30 0001062231 us-gaap:RevolvingCreditFacilityMember 2018-12-31 0001062231 axl:TotalDebtInstrumentsexcludingRevolvingCreditFacilityMember 2018-12-31 0001062231 axl:A6.25Notesdue2025Member us-gaap:UnsecuredDebtMember 2018-12-31 0001062231 us-gaap:CapitalLeaseObligationsMember 2018-12-31 0001062231 axl:A6.50NotesMember us-gaap:UnsecuredDebtMember 2018-12-31 0001062231 axl:A6.25NotesDue2026Member us-gaap:UnsecuredDebtMember 2018-12-31 0001062231 axl:TermLoanADue2024Member us-gaap:SecuredDebtMember 2019-09-30 0001062231 axl:TermLoanAMember us-gaap:SecuredDebtMember 2018-12-31 0001062231 axl:A6.25Notesdue2025Member us-gaap:UnsecuredDebtMember 2019-09-30 0001062231 axl:TermLoanBMember us-gaap:SecuredDebtMember 2019-09-30 0001062231 axl:TermLoanBMember us-gaap:SecuredDebtMember 2018-12-31 0001062231 axl:TotalDebtInstrumentsexcludingRevolvingCreditFacilityMember 2019-09-30 0001062231 axl:A775NotesMember us-gaap:UnsecuredDebtMember 2018-12-31 0001062231 axl:A6.25NotesDue2026Member us-gaap:UnsecuredDebtMember 2019-09-30 0001062231 axl:A6625NotesMember us-gaap:UnsecuredDebtMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:NondesignatedMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:NondesignatedMember 2018-12-31 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:NondesignatedMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:NondesignatedMember 2019-09-30 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:NondesignatedMember 2018-12-31 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:NondesignatedMember 2019-09-30 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:NondesignatedMember 2019-09-30 0001062231 us-gaap:FairValueInputsLevel1Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:NondesignatedMember 2019-09-30 0001062231 us-gaap:FairValueInputsLevel1Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001062231 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001062231 axl:OtherAssetsandDeferredChargesMember 2018-09-30 0001062231 axl:OtherAssetsandDeferredChargesMember 2018-01-01 2018-09-30 0001062231 us-gaap:PropertyPlantAndEquipmentMember 2018-01-01 2018-09-30 0001062231 us-gaap:PropertyPlantAndEquipmentMember 2018-09-30 0001062231 axl:A6.25NotesDue2026Member us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 axl:A6.25NotesDue2026Member us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 us-gaap:RevolvingCreditFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 axl:TermLoanADue2024Member us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 us-gaap:RevolvingCreditFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 axl:TermLoanADue2024Member us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 axl:A6.25Notesdue2025Member us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 axl:A6.50NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 axl:A6.50NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 us-gaap:RevolvingCreditFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 axl:A6.25NotesDue2026Member us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 axl:A6.50NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 axl:A775NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 us-gaap:RevolvingCreditFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 axl:TermLoanAMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 axl:A6.25Notesdue2025Member us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 axl:A6.25Notesdue2025Member us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 axl:A6625NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 axl:A6625NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 axl:TermLoanBMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 axl:A6625NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 axl:A775NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 axl:A6.25Notesdue2025Member us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 axl:TermLoanAMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 axl:TermLoanBMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 axl:A775NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 axl:A6625NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001062231 axl:A6.25NotesDue2026Member us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 axl:TermLoanBMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001062231 axl:A6.50NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 axl:TermLoanBMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001062231 axl:A775NotesMember us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001062231 us-gaap:DebtMember us-gaap:InterestRateSwapMember 2019-05-28 0001062231 axl:ForeignCurrencyForwardForeignCurrencyOptionContractsMember 2019-09-30 0001062231 us-gaap:DebtMember us-gaap:InterestRateSwapMember 2019-09-30 0001062231 us-gaap:CurrencySwapMember 2019-09-30 0001062231 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2018-01-01 2018-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2019-07-01 2019-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2019-01-01 2019-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2018-07-01 2018-09-30 0001062231 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-07-01 2019-09-30 0001062231 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-09-30 0001062231 srt:ScenarioForecastMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2019-10-01 2020-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2018-01-01 2018-09-30 0001062231 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-01-01 2018-09-30 0001062231 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-01-01 2019-09-30 0001062231 srt:ScenarioForecastMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-10-01 2020-09-30 0001062231 srt:ScenarioForecastMember us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-10-01 2020-09-30 0001062231 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-07-01 2019-09-30 0001062231 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-07-01 2018-09-30 0001062231 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2018-07-01 2018-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-07-01 2018-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:CostOfSalesMember 2019-01-01 2019-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-01-01 2018-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:CostOfSalesMember 2018-01-01 2018-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-07-01 2019-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:CostOfSalesMember 2019-07-01 2019-09-30 0001062231 us-gaap:ForeignExchangeForwardMember us-gaap:CostOfSalesMember 2018-07-01 2018-09-30 0001062231 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-09-30 0001062231 us-gaap:PensionPlansDefinedBenefitMember 2019-09-30 0001062231 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-09-30 0001062231 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-07-01 2018-09-30 0001062231 us-gaap:PensionPlansDefinedBenefitMember 2018-07-01 2018-09-30 0001062231 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-07-01 2019-09-30 0001062231 us-gaap:PensionPlansDefinedBenefitMember 2019-07-01 2019-09-30 0001062231 us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-09-30 0001062231 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-01-01 2018-09-30 0001062231 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-09-30 0001062231 us-gaap:ForeignCountryMember 2018-01-01 2018-09-30 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-07-01 2019-09-30 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-07-01 2019-09-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-07-01 2019-09-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-07-01 2019-09-30 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-06-30 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-06-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-06-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-09-30 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-09-30 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-09-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-09-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-06-30 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-09-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-09-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-09-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-09-30 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-07-01 2018-09-30 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-07-01 2018-09-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-07-01 2018-09-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-07-01 2018-09-30 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-09-30 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-06-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-09-30 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-09-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-06-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-09-30 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-06-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-06-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-09-30 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-09-30 0001062231 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2017-12-31 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-09-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-09-30 0001062231 us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2017-12-31 0001062231 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2017-12-31 0001062231 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2017-12-31 0001062231 srt:SouthAmericaMember axl:DrivelineMember 2019-07-01 2019-09-30 0001062231 srt:SouthAmericaMember axl:CastingMember 2019-01-01 2019-09-30 0001062231 axl:CastingMember 2018-07-01 2018-09-30 0001062231 srt:EuropeMember axl:MetalFormingMember 2019-01-01 2019-09-30 0001062231 srt:NorthAmericaMember axl:CastingMember 2019-07-01 2019-09-30 0001062231 axl:MetalFormingMember 2018-07-01 2018-09-30 0001062231 srt:NorthAmericaMember axl:DrivelineMember 2018-07-01 2018-09-30 0001062231 srt:NorthAmericaMember axl:MetalFormingMember 2018-01-01 2018-09-30 0001062231 srt:NorthAmericaMember 2019-07-01 2019-09-30 0001062231 srt:EuropeMember axl:DrivelineMember 2019-01-01 2019-09-30 0001062231 srt:SouthAmericaMember axl:CastingMember 2018-07-01 2018-09-30 0001062231 srt:EuropeMember axl:CastingMember 2019-01-01 2019-09-30 0001062231 srt:SouthAmericaMember axl:MetalFormingMember 2018-07-01 2018-09-30 0001062231 srt:SouthAmericaMember 2018-01-01 2018-09-30 0001062231 srt:SouthAmericaMember axl:DrivelineMember 2018-01-01 2018-09-30 0001062231 axl:DrivelineMember 2018-01-01 2018-09-30 0001062231 srt:EuropeMember axl:DrivelineMember 2019-07-01 2019-09-30 0001062231 srt:AsiaMember axl:DrivelineMember 2019-01-01 2019-09-30 0001062231 srt:EuropeMember axl:CastingMember 2018-01-01 2018-09-30 0001062231 srt:EuropeMember 2018-07-01 2018-09-30 0001062231 srt:NorthAmericaMember 2018-01-01 2018-09-30 0001062231 srt:NorthAmericaMember axl:MetalFormingMember 2019-07-01 2019-09-30 0001062231 axl:CastingMember 2019-07-01 2019-09-30 0001062231 srt:NorthAmericaMember axl:DrivelineMember 2019-01-01 2019-09-30 0001062231 srt:EuropeMember 2018-01-01 2018-09-30 0001062231 srt:SouthAmericaMember axl:MetalFormingMember 2019-07-01 2019-09-30 0001062231 srt:AsiaMember axl:CastingMember 2019-07-01 2019-09-30 0001062231 srt:EuropeMember axl:MetalFormingMember 2018-07-01 2018-09-30 0001062231 srt:NorthAmericaMember 2018-07-01 2018-09-30 0001062231 srt:EuropeMember 2019-01-01 2019-09-30 0001062231 srt:AsiaMember 2019-07-01 2019-09-30 0001062231 srt:AsiaMember axl:CastingMember 2019-01-01 2019-09-30 0001062231 axl:MetalFormingMember 2019-07-01 2019-09-30 0001062231 srt:EuropeMember axl:DrivelineMember 2018-01-01 2018-09-30 0001062231 srt:EuropeMember axl:MetalFormingMember 2018-01-01 2018-09-30 0001062231 srt:AsiaMember axl:CastingMember 2018-07-01 2018-09-30 0001062231 srt:SouthAmericaMember 2019-07-01 2019-09-30 0001062231 srt:SouthAmericaMember axl:DrivelineMember 2018-07-01 2018-09-30 0001062231 srt:AsiaMember axl:CastingMember 2018-01-01 2018-09-30 0001062231 srt:NorthAmericaMember 2019-01-01 2019-09-30 0001062231 srt:NorthAmericaMember axl:CastingMember 2019-01-01 2019-09-30 0001062231 srt:NorthAmericaMember axl:CastingMember 2018-07-01 2018-09-30 0001062231 srt:AsiaMember 2018-07-01 2018-09-30 0001062231 srt:AsiaMember axl:DrivelineMember 2018-01-01 2018-09-30 0001062231 srt:NorthAmericaMember axl:MetalFormingMember 2019-01-01 2019-09-30 0001062231 srt:AsiaMember axl:MetalFormingMember 2018-01-01 2018-09-30 0001062231 srt:SouthAmericaMember 2018-07-01 2018-09-30 0001062231 srt:AsiaMember 2019-01-01 2019-09-30 0001062231 srt:SouthAmericaMember axl:CastingMember 2019-07-01 2019-09-30 0001062231 axl:MetalFormingMember 2018-01-01 2018-09-30 0001062231 srt:NorthAmericaMember axl:CastingMember 2018-01-01 2018-09-30 0001062231 srt:NorthAmericaMember axl:DrivelineMember 2019-07-01 2019-09-30 0001062231 srt:AsiaMember axl:MetalFormingMember 2019-07-01 2019-09-30 0001062231 srt:AsiaMember axl:DrivelineMember 2019-07-01 2019-09-30 0001062231 srt:EuropeMember axl:MetalFormingMember 2019-07-01 2019-09-30 0001062231 srt:AsiaMember 2018-01-01 2018-09-30 0001062231 axl:CastingMember 2018-01-01 2018-09-30 0001062231 srt:SouthAmericaMember 2019-01-01 2019-09-30 0001062231 srt:AsiaMember axl:MetalFormingMember 2018-07-01 2018-09-30 0001062231 axl:DrivelineMember 2018-07-01 2018-09-30 0001062231 srt:SouthAmericaMember axl:DrivelineMember 2019-01-01 2019-09-30 0001062231 srt:EuropeMember axl:CastingMember 2019-07-01 2019-09-30 0001062231 srt:EuropeMember axl:DrivelineMember 2018-07-01 2018-09-30 0001062231 srt:NorthAmericaMember axl:DrivelineMember 2018-01-01 2018-09-30 0001062231 axl:DrivelineMember 2019-07-01 2019-09-30 0001062231 srt:SouthAmericaMember axl:MetalFormingMember 2019-01-01 2019-09-30 0001062231 srt:SouthAmericaMember axl:MetalFormingMember 2018-01-01 2018-09-30 0001062231 srt:AsiaMember axl:DrivelineMember 2018-07-01 2018-09-30 0001062231 srt:AsiaMember axl:MetalFormingMember 2019-01-01 2019-09-30 0001062231 srt:EuropeMember axl:CastingMember 2018-07-01 2018-09-30 0001062231 srt:EuropeMember 2019-07-01 2019-09-30 0001062231 srt:NorthAmericaMember axl:MetalFormingMember 2018-07-01 2018-09-30 0001062231 srt:SouthAmericaMember axl:CastingMember 2018-01-01 2018-09-30 0001062231 axl:CorporateandEliminationsMember 2019-09-30 0001062231 axl:CorporateandEliminationsMember 2018-12-31 0001062231 srt:ConsolidationEliminationsMember 2018-01-01 2018-09-30 0001062231 srt:ParentCompanyMember 2018-09-30 0001062231 srt:NonGuarantorSubsidiariesMember 2018-01-01 2018-09-30 0001062231 srt:GuarantorSubsidiariesMember 2018-01-01 2018-09-30 0001062231 srt:ConsolidationEliminationsMember 2017-12-31 0001062231 srt:ParentCompanyMember 2018-01-01 2018-09-30 0001062231 srt:ConsolidationEliminationsMember 2018-09-30 0001062231 srt:SubsidiaryIssuerMember 2018-09-30 0001062231 srt:SubsidiaryIssuerMember 2018-01-01 2018-09-30 0001062231 srt:GuarantorSubsidiariesMember 2018-09-30 0001062231 srt:NonGuarantorSubsidiariesMember 2018-09-30 0001062231 srt:GuarantorSubsidiariesMember 2017-12-31 0001062231 srt:NonGuarantorSubsidiariesMember 2017-12-31 0001062231 srt:SubsidiaryIssuerMember 2017-12-31 0001062231 srt:ParentCompanyMember 2017-12-31 0001062231 srt:SubsidiaryIssuerMember 2018-07-01 2018-09-30 0001062231 srt:ParentCompanyMember 2018-07-01 2018-09-30 0001062231 srt:NonGuarantorSubsidiariesMember 2018-07-01 2018-09-30 0001062231 srt:ConsolidationEliminationsMember 2018-07-01 2018-09-30 0001062231 srt:GuarantorSubsidiariesMember 2018-07-01 2018-09-30 0001062231 srt:SubsidiaryIssuerMember 2019-07-01 2019-09-30 0001062231 srt:ParentCompanyMember 2019-07-01 2019-09-30 0001062231 srt:NonGuarantorSubsidiariesMember 2019-07-01 2019-09-30 0001062231 srt:GuarantorSubsidiariesMember 2019-07-01 2019-09-30 0001062231 srt:ConsolidationEliminationsMember 2019-07-01 2019-09-30 0001062231 srt:ParentCompanyMember 2019-01-01 2019-09-30 0001062231 srt:GuarantorSubsidiariesMember 2019-01-01 2019-09-30 0001062231 srt:SubsidiaryIssuerMember 2019-01-01 2019-09-30 0001062231 srt:NonGuarantorSubsidiariesMember 2019-01-01 2019-09-30 0001062231 srt:ConsolidationEliminationsMember 2019-01-01 2019-09-30 0001062231 srt:ConsolidationEliminationsMember 2019-09-30 0001062231 srt:GuarantorSubsidiariesMember 2019-09-30 0001062231 srt:NonGuarantorSubsidiariesMember 2018-12-31 0001062231 srt:GuarantorSubsidiariesMember 2018-12-31 0001062231 srt:ParentCompanyMember 2019-09-30 0001062231 srt:SubsidiaryIssuerMember 2019-09-30 0001062231 srt:ConsolidationEliminationsMember 2018-12-31 0001062231 srt:ParentCompanyMember 2018-12-31 0001062231 srt:SubsidiaryIssuerMember 2018-12-31 0001062231 srt:NonGuarantorSubsidiariesMember 2019-09-30 iso4217:USD xbrli:pure axl:Employees iso4217:USD xbrli:shares xbrli:shares axl:Countries axl:Facilities
                                                


 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
For the quarterly period ended
September 30, 2019
 
 
or
 
 
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
For the transition period from  _____________ to _____________
 
 
Commission File Number:  1-14303
_______________________________________________________________________________

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
 
Delaware
 
38-3161171
 
(State or Other Jurisdiction of Incorporation or Organization)
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
 
 
 
 
 
 
One Dauch Drive,
Detroit
,
Michigan
 
 
48211-1198
 
(Address of Principal Executive Offices)
 
(Zip Code)

(313) 758-2000
(Registrant's Telephone Number, Including Area Code)
_______________________________________________________________________________
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer            Accelerated filer           Non-accelerated filer            Smaller reporting company            Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No 

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, par value $0.01 per share
AXL
New York Stock Exchange

As of October 29, 2019, the latest practicable date, the number of shares of the registrant's Common Stock, par value $0.01 per share, outstanding was 112,475,824 shares.
 
Internet Website Access to Reports

The website for American Axle & Manufacturing Holdings, Inc. is www.aam.com.  Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13 or 15(d) of the Exchange Act are available free of charge through our website as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission (SEC).  The SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.




AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2019
TABLE OF CONTENTS 
 
 
 
 
Page Number
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




FORWARD-LOOKING STATEMENTS

In this Quarterly Report on Form 10-Q (Quarterly Report), we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as “will,” “may,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “project,” "target," and similar words or expressions, as well as statements in future tense, are intended to identify forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and may differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:

reduced purchases of our products by General Motors Company (GM), FCA US LLC (FCA), or other customers;
our ability to respond to changes in technology, increased competition or pricing pressures;
our ability to develop and produce new products that reflect market demand;
our ability or our customers' and suppliers' ability to successfully launch new product programs on a timely and cost efficient basis;
lower-than-anticipated market acceptance of new or existing products;
our ability to attract new customers and programs for new products;
an impairment of our goodwill, other intangible assets, or long-lived assets if our business or market conditions indicate that the carrying values of those assets exceed their fair values;
reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM and FCA);
risks inherent in our global operations (including tariffs and the potential consequences thereof to us, our suppliers, and our customers and their suppliers, adverse changes in trade agreements, such as NAFTA, or proposed trade agreements, such as the USMCA, immigration policies, political stability, taxes and other law changes, potential disruptions of production and supply, and currency rate fluctuations);
a significant disruption in operations at one or more of our key manufacturing facilities;
our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid work stoppages;
global economic conditions;
liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber attack and other similar disruptions;
supply shortages or price increases in raw material and/or freight, utilities or other operating supplies for us or our customers as a result of natural disasters or otherwise;
our ability to successfully integrate the business and information systems of MPG and to realize the anticipated benefits of the merger;
negative or unexpected tax consequences;
our ability to achieve the level of cost reductions required to sustain global cost competitiveness;
our ability to realize the expected revenues from our new and incremental business backlog;
our ability to maintain satisfactory labor relations and avoid work stoppages;
price volatility in, or reduced availability of, fuel;
potential liabilities or litigation relating to, or assumed in, the MPG merger;
potential adverse reactions or changes to business relationships resulting from the completion of the merger with MPG;
our ability to protect our intellectual property and successfully defend against assertions made against us;
our ability to attract and retain key associates;
availability of financing for working capital, capital expenditures, research and development (R&D) or other general corporate purposes including acquisitions, as well as our ability to comply with financial covenants;
our customers' and suppliers' availability of financing for working capital, capital expenditures, R&D or other general corporate purposes;
changes in liabilities arising from pension and other postretirement benefit obligations;
risks of noncompliance with environmental laws and regulations or risks of environmental issues that could result in unforeseen costs at our current and former facilities, or reputational damage;
adverse changes in laws, government regulations or market conditions affecting our products or our customers' products;
our ability or our customers' and suppliers' ability to comply with regulatory requirements and the potential costs of such compliance; and
other unanticipated events and conditions that may hinder our ability to compete.

It is not possible to foresee or identify all such factors and we make no commitment to update any forward-looking statement or to disclose any facts, events or circumstances after the date hereof that may affect the accuracy of any forward-looking statement.


1



PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions, except per share data)
 
 
 
 
 
 
 
 
Net sales
$
1,677.4

 
$
1,817.0

 
$
5,100.9

 
$
5,576.3

 
 
 
 
 
 
 
 
Cost of goods sold
1,428.7

 
1,549.6

 
4,381.7

 
4,661.2

 
 
 
 
 
 
 
 
Gross profit
248.7

 
267.4

 
719.2

 
915.1

 
 
 
 
 
 
 
 
Selling, general and administrative expenses
92.7

 
96.3

 
274.7

 
288.6

 
 
 
 
 
 
 
 
Amortization of intangible assets
23.7

 
24.8

 
73.6

 
74.5

 
 
 
 
 
 
 
 
Impairment charge (Note 2)
225.0

 

 
225.0

 

 

 
 
 
 
 
 
Restructuring and acquisition-related costs
11.7

 
11.7

 
36.0

 
66.8

 
 
 
 
 
 
 
 
Gain on sale of business

 

 

 
(15.5
)
 
 
 
 
 
 
 
 
Operating income (loss)
(104.4
)
 
134.6

 
109.9

 
500.7

 
 
 
 
 
 
 
 
Interest expense
(54.3
)
 
(54.9
)
 
(163.9
)
 
(162.5
)
 
 
 
 
 
 
 
 
Investment income
2.2

 
0.6

 
3.4

 
1.6

 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
Debt refinancing and redemption costs
(5.1
)
 

 
(7.5
)
 
(14.6
)
Gain on settlement of capital lease

 

 

 
15.6

     Other expense, net
(2.9
)
 
(4.8
)
 
(9.0
)
 
(4.6
)
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(164.5
)
 
75.5

 
(67.1
)
 
336.2

 
 
 
 
 
 
 
 
Income tax expense (benefit)
(40.4
)
 
11.5

 
(37.4
)
 
31.4

 
 
 
 
 
 
 
 
Net income (loss)
$
(124.1
)
 
$
64.0

 
$
(29.7
)
 
$
304.8

 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests
(0.1
)
 
(0.2
)
 
(0.4
)
 
(0.5
)
 
 
 
 
 
 
 
 
Net income (loss) attributable to AAM
$
(124.2
)
 
$
63.8

 
$
(30.1
)
 
$
304.3

 

 

 

 

Basic earnings (loss) per share
$
(1.10
)
 
$
0.55

 
$
(0.27
)
 
$
2.65

 

 

 

 

Diluted earnings (loss) per share
$
(1.10
)
 
$
0.55

 
$
(0.27
)
 
$
2.63

 
See accompanying notes to condensed consolidated financial statements.

2



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Net income (loss)
$
(124.1
)
 
$
64.0

 
$
(29.7
)
 
$
304.8

 
 
 
 
 
 
 
 
Other comprehensive income (loss)

 

 

 

Defined benefit plans, net of tax (a)
(1.3
)
 
1.0

 
0.5

 
14.5

     Foreign currency translation adjustments
(37.1
)
 
(11.9
)
 
(34.7
)
 
(55.0
)
     Changes in cash flow hedges, net of tax (b)
(6.4
)
 
12.4

 
(24.7
)
 
19.6

Other comprehensive income (loss)
(44.8
)
 
1.5

 
(58.9
)
 
(20.9
)
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
(168.9
)
 
$
65.5

 
$
(88.6
)
 
$
283.9

 
 
 
 
 
 
 
 
     Net income attributable to noncontrolling interests
(0.1
)
 
(0.2
)
 
(0.4
)
 
(0.5
)
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to AAM
$
(169.0
)
 
$
65.3

 
$
(89.0
)
 
$
283.4

(a)
Amounts are net of tax of $0.3 million and $(0.2) million for the three and nine months ended September 30, 2019, and $(0.3) million and $(4.8) million for the three and nine months ended September 30, 2018, respectively.
(b)
Amounts are net of tax of $1.1 million and $7.3 million for the three and nine months ended September 30, 2019, and $(0.5) million and $(1.7) million for the three and nine months ended September 30, 2018, respectively.

See accompanying notes to condensed consolidated financial statements.                   

3



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

 
 
September 30, 2019
 
December 31, 2018
 
 
(Unaudited)
 
 
Assets
 
(in millions)
Current assets
 
 
Cash and cash equivalents
 
$
375.1

 
$
476.4

Accounts receivable, net
 
976.9

 
966.5

Inventories, net
 
403.1

 
459.7

Prepaid expenses and other
 
130.9

 
127.2

Current assets held-for-sale
 
312.2

 

Total current assets
 
2,198.2

 
2,029.8

 
 
 

 
 

Property, plant and equipment, net
 
2,326.4

 
2,514.4

Deferred income taxes
 
61.9

 
45.5

Goodwill
 
1,127.5

 
1,141.8

Other intangible assets, net
 
881.5

 
1,111.1

GM postretirement cost sharing asset
 
223.1

 
219.4

Other assets and deferred charges
 
497.7

 
448.7

Total assets
 
$
7,316.3

 
$
7,510.7

 
 
 

 
 

Liabilities and Stockholders’ Equity
 
 

 
 

Current liabilities
 
 

 
 

Current portion of long-term debt
 
$
23.8

 
$
121.6

Accounts payable
 
703.7

 
840.2

Accrued compensation and benefits
 
165.1

 
179.0

Deferred revenue
 
22.6

 
44.3

Accrued expenses and other
 
220.2

 
171.7

Current liabilities held-for-sale
 
101.7

 

Total current liabilities
 
1,237.1

 
1,356.8

 
 
 

 
 

Long-term debt, net
 
3,673.3

 
3,686.8

Deferred revenue
 
83.1

 
77.6

Deferred income taxes
 
21.6

 
92.6

Postretirement benefits and other long-term liabilities
 
891.6

 
810.6

Total liabilities
 
5,906.7

 
6,024.4

 
 
 

 
 

Stockholders' equity
 
 

 
 

Common stock, par value $0.01 per share; 150.0 million shares authorized;
 
 
 
 
120.1 million shares issued as of September 30, 2019 and 118.9 million shares issued as of December 31, 2018
 
1.2

 
1.2

Paid-in capital
 
1,310.1

 
1,292.6

Retained earnings
 
703.0

 
703.5

Treasury stock at cost, 7.6 million shares as of September 30, 2019 and 7.2 million shares as of December 31, 2018
 
(209.3
)
 
(201.8
)
Accumulated other comprehensive loss
 
 
 
 
Defined benefit plans, net of tax
 
(241.1
)
 
(213.9
)
Foreign currency translation adjustments
 
(131.3
)
 
(96.6
)
Unrecognized loss on cash flow hedges, net of tax
 
(25.8
)
 
(1.1
)
Total AAM stockholders' equity
 
1,406.8

 
1,483.9

Noncontrolling interests in subsidiaries
 
2.8

 
2.4

Total stockholders' equity
 
1,409.6

 
1,486.3

Total liabilities and stockholders' equity
 
$
7,316.3

 
$
7,510.7

 See accompanying notes to condensed consolidated financial statements. 

4



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
Nine Months Ended
 
 
September 30,
 
 
2019
 
2018
 
 
(in millions)
Operating activities
 
 
 
 
Net income (loss)
 
$
(29.7
)
 
$
304.8

Adjustments to reconcile net income (loss) to net cash provided by operating activities
 
 
 
 
Depreciation and amortization
 
411.5

 
390.9

Impairment charges (Note 2 and Note 4)
 
225.0

 
26.6

Deferred income taxes
 
(87.6
)
 
51.7

Stock-based compensation
 
17.5

 
20.7

Pensions and other postretirement benefits, net of contributions
 
(10.4
)
 
(3.1
)
Gain on sale of business
 

 
(15.5
)
Loss (gain) on disposal of property, plant and equipment, net
 
1.3

 
(3.3
)
Debt refinancing and redemption costs and (gain) on settlement of capital lease
 
7.5

 
(0.8
)
Changes in operating assets and liabilities
 
 
 
 
Accounts receivable
 
(108.4
)
 
(248.0
)
Inventories
 
18.8

 
(67.2
)
Accounts payable and accrued expenses
 
8.6

 
188.7

Deferred revenue
 
(12.9
)
 
13.3

Other assets and liabilities
 
(62.6
)
 
(145.6
)
Net cash provided by operating activities
 
378.6

 
513.2

 
 
 

 
 

Investing activities
 
 

 
 

Purchases of property, plant and equipment
 
(335.3
)
 
(391.8
)
Proceeds from sale of property, plant and equipment
 
2.0

 
3.2

Investment in joint venture
 
(2.2
)
 

Purchase buyouts of leased equipment
 

 
(0.5
)
Proceeds from sale of business, net
 

 
47.1

Acquisition of business
 

 
(1.3
)
Net cash used in investing activities
 
(335.5
)
 
(343.3
)
 
 
 

 
 

Financing activities
 
 

 
 

Payments of long-term debt and finance lease obligations
 
(477.7
)

(568.0
)
Proceeds from issuance of long-term debt
 
348.4


481.3

Debt issuance costs
 
(3.3
)

(6.9
)
Purchase of noncontrolling interest
 

 
(2.2
)
Purchase of treasury stock
 
(7.5
)

(3.7
)
Net cash used in financing activities
 
(140.1
)

(99.5
)
 
 
 

 
 

Effect of exchange rate changes on cash
 
(4.3
)

(5.3
)
 
 
 

 
 

Net increase (decrease) in cash, cash equivalents and restricted cash
 
(101.3
)

65.1

 
 
 

 
 

Cash, cash equivalents and restricted cash at beginning of period
 
478.9


376.8

 
 
 

 
 

Cash, cash equivalents and restricted cash at end of period
 
$
377.6


$
441.9

 
 
 

 
 

Supplemental cash flow information
 
 

 
 

     Interest paid
 
$
136.3

 
$
127.8

     Income taxes paid, net of refunds
 
$
45.7

 
$
33.6


See accompanying notes to condensed consolidated financial statements.

5



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)

 
Common Stock
 
 
 
Accumulated
Noncontrolling
 
Shares
Par
Paid-in
Retained
Treasury
Other Comprehensive
Interest
 
Outstanding
Value
Capital
Earnings
Stock
Income (Loss)
in Subsidiaries
Balance at January 1, 2018
111.3

$
1.2

$
1,264.6

$
761.0

$
(198.1
)
$
(292.7
)
$
4.0

Net income



89.4



0.1

Exercise of stock options and vesting of restricted stock units and performance shares
0.6







Stock-based compensation


6.6





Purchase of treasury stock
(0.2
)



(3.5
)


Changes in cash flow hedges





15.1


Foreign currency translation adjustments





37.9


Defined benefit plans, net





1.3


Purchase of noncontrolling interest






(0.9
)
Balance at March 31, 2018
111.7

$
1.2

$
1,271.2

$
850.4

$
(201.6
)
$
(238.4
)
$
3.2

Net income



151.1



0.2

Stock-based compensation


7.1





Purchase of treasury stock




(0.1
)


Changes in cash flow hedges





(7.9
)

Foreign currency translation adjustments





(81.0
)

Defined benefit plans, net





12.2


Purchase of noncontrolling interest






(1.4
)
Balance at June 30, 2018
111.7

$
1.2

$
1,278.3

$
1,001.5

$
(201.7
)
$
(315.1
)
$
2.0

Net income



63.8



0.2

Exercise of stock options


0.1





Stock-based compensation


7.1





Purchase of treasury stock
(0.1
)



(0.1
)


Changes in cash flow hedges





12.4


Foreign currency translation adjustments





(11.9
)

Defined benefit plans, net





1.0


Purchase of noncontrolling interest






(0.1
)
Balance at September 30, 2018
111.6

$
1.2

$
1,285.5

$
1,065.3

$
(201.8
)
$
(313.6
)
$
2.1


6



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (CONTINUED)
(Unaudited)

 
Common Stock
 
 
 
Accumulated
Noncontrolling
 
Shares
Par
Paid-in
Retained
Treasury
Other Comprehensive
Interest
 
Outstanding
Value
Capital
Earnings
Stock
Income (Loss)
in Subsidiaries
Balance at January 1, 2019
111.7

$
1.2

$
1,292.6

$
703.5

$
(201.8
)
$
(311.6
)
$
2.4

Net income



41.6



0.1

Vesting of restricted stock units and performance shares
1.2







Stock-based compensation


5.5





Modified-retrospective application of ASU 2016-02



1.9




Adoption of ASU 2018-02



27.7


(27.7
)

Purchase of treasury stock
(0.4
)



(7.3
)


Changes in cash flow hedges





(2.5
)

Foreign currency translation adjustments





(2.5
)

Defined benefit plans, net





0.7


Balance at March 31, 2019
112.5

$
1.2

$
1,298.1

$
774.7

$
(209.1
)
$
(343.6
)
$
2.5

Net income



52.5



0.2

Stock-based compensation


5.7





Purchase of treasury stock




(0.2
)


Changes in cash flow hedges





(15.8
)

Foreign currency translation adjustments





4.9


Defined benefit plans, net





1.1


Balance at June 30, 2019
112.5

$
1.2

$
1,303.8

$
827.2

$
(209.3
)
$
(353.4
)
$
2.7

Net loss



(124.2
)


0.1

Stock-based compensation


6.3





Changes in cash flow hedges





(6.4
)

Foreign currency translation adjustments





(37.1
)

Defined benefit plans, net





(1.3
)

Balance at September 30, 2019
112.5

$
1.2

$
1,310.1

$
703.0

$
(209.3
)
$
(398.2
)
$
2.8


See accompanying notes to condensed consolidated financial statements.


7



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2019
(Unaudited)

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization We are a global Tier 1 supplier to the automotive industry. We design, engineer and manufacture driveline, metal forming and casting products that are making the next generation of vehicles smarter, lighter, safer and more efficient. We employ over 25,000 associates, operating at nearly 90 facilities in 17 countries, to support our customers on global and regional platforms with a focus on quality, operational excellence and technology leadership.

In the third quarter of 2019, we entered into a definitive agreement to sell the U.S. operations of our Casting segment to entities affiliated with Gamut Capital Management, L.P. As a result, the assets and liabilities associated with this business have met the criteria to be classified as held-for-sale in our Condensed Consolidated Balance Sheet as of September 30, 2019. See Note 2 - Assets Held-for-Sale for further detail.

In the first quarter of 2019, we initiated a new global restructuring program (the 2019 Program) to further streamline our business by consolidating our four existing segments into three segments. This activity occurred through the disaggregation of our Powertrain segment, with a portion moving into our Driveline segment and a portion moving into our Metal Forming segment. See Note 4 - Restructuring and Acquisition-Related Costs for more detail on this reorganization.

Basis of Presentation We have prepared the accompanying interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934.  These condensed consolidated financial statements are unaudited but include all normal recurring adjustments, which we consider necessary for a fair presentation of the information set forth herein. Results of operations for the periods presented are not necessarily indicative of the results for the full fiscal year.

The balance sheet at December 31, 2018 presented herein has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete consolidated financial statements.
 
In order to prepare the accompanying interim condensed consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts and disclosures in our interim condensed consolidated financial statements.  Actual results could differ from those estimates.

For further information, refer to the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2018.

Effect of New Accounting Standards

Accounting Standard Update 2018-15

On August 15, 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-15 - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (Topic 350-40). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing or hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance becomes effective at the beginning of our 2020 fiscal year and may be applied either retrospectively or prospectively. We expect to adopt this guidance prospectively on January 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements.


8

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Accounting Standards Update 2018-02

On February 14, 2018, the FASB issued ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220). ASU 2018-02 allows companies the option to reclassify disproportionate tax effects in accumulated other comprehensive income (AOCI) caused by the 2017 Tax Cuts and Jobs Act, also known as stranded tax effects, to retained earnings. ASU 2018-02 also requires expanded disclosures related to disproportionate income tax effects from AOCI, some of which are applicable to all companies regardless of whether the option to reclassify the stranded tax effects is exercised. This guidance became effective on January 1, 2019, and we elected to reclassify the stranded tax effects caused by the 2017 Tax Cuts and Jobs Act, resulting in a decrease in Accumulated other comprehensive income (loss) and an increase in Retained earnings of $27.7 million at January 1, 2019.

Accounting Standards Update 2016-02

On February 25, 2016, the FASB issued ASU 2016-02 - Leases (Topic 842), and has subsequently issued ASU 2017-13 - Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840) and Leases (Topic 842) (collectively the Lease ASUs) which supersede the existing lease accounting guidance and establish new criteria for recognizing lease assets and liabilities. The most significant impact of these updates, to AAM, is that a lessee is required to recognize a "right-of-use" asset and lease liability for operating lease agreements that were not previously included on the balance sheet under previous lease guidance. Expense recognition in the statement of income, along with cash flow statement classification for both financing (capital) and operating leases under the new standard are not significantly changed from previous lease guidance. This guidance became effective for AAM on January 1, 2019. See Note 3 - Leasing for additional detail regarding the adoption of ASU 2016-02.




9

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2. ASSETS HELD-FOR-SALE

In the third quarter of 2019, we entered into a definitive agreement to sell the U.S. operations of our Casting segment to entities affiliated with Gamut Capital Management, L.P. for a sales price of $245.0 million, subject to certain customary adjustments. The sales price consists of $185.0 million in cash and a $60.0 million deferred payment obligation, which will accrue interest at an annual rate of 6% beginning on January 1, 2020 for a period of twelve years. The sale is expected to close in the fourth quarter of 2019.

As a result, the assets and liabilities associated with this business have met the criteria to be classified as held-for-sale in our Condensed Consolidated Balance Sheet as of September 30, 2019. Upon reclassification to held-for-sale in the third quarter of 2019, we recorded a pre-tax impairment charge of $225.0 million to reduce the carrying value of this business to fair value less cost to sell. The sale of the U.S. operations of our Casting segment did not qualify for classification as discontinued operations as the sale does not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results.

The assets and liabilities classified as held-for-sale are as follows (in millions):
 
September 30, 2019
 
 
Accounts receivable, net
$
89.1

Inventories
32.8

Prepaid expenses and other
1.5

Property, plant and equipment, net
184.6

Intangible assets, net
158.2

Other assets and deferred charges
71.0

Impairment of carrying value
(225.0
)
   Total assets held-for-sale*
$
312.2

 
 
Accounts payable
$
71.3

Accrued compensation and benefits
6.8

Accrued expenses and other
3.4

Postretirement benefits and other long-term liabilities
20.2

   Total liabilities held-for-sale*
$
101.7

 

* The assets and liabilities classified as held-for-sale are classified entirely as current in the September 30, 2019 Condensed Consolidated Balance Sheet as we expect to complete the sale in the fourth quarter of 2019. As this transaction does not qualify for classification as discontinued operations, no reclassification of the assets and liabilities in the December 31, 2018 Condensed Consolidated Balance Sheet was required.



10

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

3. LEASING

On January 1, 2019, we adopted new accounting guidance under Accounting Standards Codification Topic 842 (ASC 842) Leases. ASC 842 superseded prior lease accounting guidance and established new criteria for recognizing right-of-use assets and lease liabilities for operating lease arrangements on our Condensed Consolidated Balance Sheet. We elected to adopt this guidance utilizing the optional transition method that allowed us to not retrospectively revise prior period balance sheets to include operating leases, and to only include the disclosures required under ASC 842 for the periods subsequent to adoption.

We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, we have a lease. We lease certain facilities and furniture under finance leases, and we also lease certain commercial office and production facilities, manufacturing machinery and equipment, vehicles and other assets under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised.

The lease consideration for some of our facilities and machinery and equipment is variable, as it is based on various indices or usage of the underlying assets, respectively. Variable lease payments based on indices have been included in the related right-of-use assets and lease liabilities on our Condensed Consolidated Balance Sheet, while variable lease payments based on usage of the underlying asset have been excluded as they do not represent present rights or obligations.

Lease cost consists of the following:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2019
 
 
(in millions)
 
 
 
 
 
Finance lease cost
 
 
 
 
     Amortization of right-of-use assets
 
$
0.2

 
$
0.6

Interest on lease liabilities
 
0.1

 
0.2

Total finance lease cost
 
0.3

 
0.8

 
 
 
 
 
Operating lease cost
 
6.5

 
19.9

Short-term lease cost
 
1.4

 
4.8

Variable lease cost
 
2.5

 
6.7

 
 
 
 
 
Total lease cost
 
$
10.7

 
$
32.2



For the three months ended September 30, 2019, $8.0 million and $2.4 million were recorded to Cost of goods sold (COGS) and Selling, general and administrative expenses (SG&A), respectively, on our Condensed Consolidated Statement of Operations, as compared to $7.1 million and $2.4 million, respectively, for the three months ended September 30, 2018. For the nine months ended September 30, 2019, $24.0 million and $7.4 million were recorded to COGS and SG&A, respectively, on our Condensed Consolidated Statement of Operations, as compared to $21.4 million and $7.4 million, respectively for the nine months ended September 30, 2018.

11

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The following table summarizes additional information related to our lease agreements.
 
 
Nine Months Ended
 
 
September 30,
 
 
2019
 
 
(in millions, except lease term and rate)
 
 
 
Cash paid for amounts included in measurement of lease liabilities
 
 
     Operating cash flows from finance leases
 
$
0.2

Operating cash flows from operating leases
 
18.2

Financing cash flows from finance leases
 
0.6

 
 
 
Weighted-average remaining lease term - finance leases
 
3.1 years

Weighted-average remaining lease term - operating leases
 
7.5 years

 
 


Weighted-average discount rate - finance leases
 
8.1
%
Weighted-average discount rate - operating leases
 
5.6
%


As the rate implicit in the lease is typically unknown, the discount rate used to determine the lease liability for the majority of our leases is the collateralized incremental borrowing rate in the applicable geographic area for a similar term and amount as the lease agreement.

Future undiscounted minimum payments under non-cancelable leases are as follows:
 
 
Finance Leases
 
Operating Leases
 
 
(in millions)
2019 (excluding the nine months ended September 30, 2019)
 
$
0.3

 
$
6.9

2020
 
1.1

 
25.6

2021
 
1.0

 
18.1

2022
 
0.9

 
14.5

2023
 
0.9

 
9.7

Thereafter
 

 
38.9

Total future undiscounted minimum lease payments
 
4.2

 
113.7

Less: Impact of discounting
 
(1.4
)
 
(20.0
)
Total
 
$
2.8

 
$
93.7



For the full year 2019, we expect payments for short-term leases to be approximately $5.0 million.

The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheet as of September 30, 2019 are as follows:
 
 
Finance Leases
 
Operating Leases
 
 
(in millions)
Property, plant and equipment, net
 
$
2.8

 
$

Other assets and deferred charges
 

 
93.7

Total
 
$
2.8

 
$
93.7

 
 
 
 
 
Accrued expenses and other
 
$
0.9

 
$
21.4

Postretirement benefits and other long-term liabilities
 
1.9

 
72.3

Total
 
$
2.8

 
$
93.7





12

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

ASC 842 Adoption of Practical Expedients

We have elected to adopt, for all classes of underlying assets, a package of practical expedients provided under ASC 842 that allow us to 1) not reassess whether existing or expired contracts contain or contained a lease; 2) not reassess the lease classification (operating or financing) of our existing leases at adoption; and 3) not reassess initial direct costs for existing leases.

ASC 842 also provides a practical expedient that allows companies to exclude balance sheet recognition of right-of-use assets and associated liabilities for lease terms of 12 months or less, which we have elected as part of our adoption of ASC 842 for all classes of underlying assets. We do not include right-of-use assets and operating lease liabilities on our Condensed Consolidated Balance Sheet for leases with a term of 12 months or less.

We have also elected to adopt the practical expedient under ASC 842 to not separate lease and non-lease components in contracts that contain both. These lease agreements are accounted for as a single lease component for all classes of underlying assets.

Leases Not Yet Commenced

As of September 30, 2019, we have entered into additional operating leases that have not yet commenced of approximately $1.4 million, which primarily reflects the lease of machinery and equipment with a term of 5 years that is expected to commence in 2019.




13

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

4. RESTRUCTURING AND ACQUISITION-RELATED COSTS

In 2016, AAM initiated actions under a global restructuring program (the 2016 Program) focused on creating a more streamlined organization in addition to reducing our cost structure and preparing for acquisition and integration activities. We incurred severance charges totaling $2.8 million and implementation costs totaling $29.6 million under the 2016 Program. There were no charges incurred under the 2016 Program during the first nine months of 2019 and we do not expect to incur any additional restructuring charges under the 2016 Program in future periods.
In the first quarter of 2019, we initiated a new global restructuring program (the 2019 Program) to further streamline our business by consolidating our four existing segments into three segments. This activity occurred through the disaggregation of our Powertrain segment, with a portion moving into our Driveline segment and a portion moving into our Metal Forming segment. The primary objectives of this consolidation are to further the integration of Metaldyne Performance Group, Inc. (MPG), align AAM's product and process technologies, and to achieve efficiencies within our corporate and business unit support teams to reduce cost in our business.
A summary of our restructuring activity for the first nine months of 2019 and 2018 is shown below:
 
Severance Charges
 
Implementation Costs
 
Asset Impairment Charges
 
Total
 
(in millions)
Accrual at December 31, 2017
$
0.3

 
$

 
$

 
$
0.3

Charges
2.3

 
8.8

 
26.6

 
37.7

Cash utilization
(0.4
)
 
(6.6
)
 

 
(7.0
)
Non-cash utilization

 

 
(26.6
)
 
(26.6
)
Accrual at September 30, 2018
$
2.2

 
$
2.2

 
$

 
$
4.4

 
 
 
 
 
 
 
 
Accrual at December 31, 2018
$
2.4

 
$
1.6

 
$

 
$
4.0

Charges
10.4

 
13.1

 

 
23.5

Cash utilization
(11.7
)
 
(9.9
)
 

 
(21.6
)
Accrual at September 30, 2019
$
1.1

 
$
4.8

 
$

 
$
5.9


As part of our restructuring actions, we incurred total severance charges of approximately $10.4 million and $2.3 million, as well as total implementation costs of approximately $13.1 million and $8.8 million, during the nine months ended September 30, 2019 and 2018, respectively. We expect to incur approximately $30 million to $35 million of total restructuring charges in 2019, including costs incurred under the ongoing 2019 Program.
In the first nine months of 2018, we initiated actions to exit operations at manufacturing facilities in our Driveline, Metal Forming and former Powertrain segment. As a result of these actions, we were required to assess the associated long-lived assets for impairment. Based on our analysis, assets that were not to be redeployed to other AAM facilities were determined to be fully impaired resulting in a charge of $26.6 million for the nine months ended September 30, 2018. See Note 8 - Fair Value for further detail.
In 2017, we completed the acquisitions of MPG and USM Mexico Manufacturing LLC (USM Mexico). During the nine months ended September 30, 2019, we incurred the following integration charges related to these acquisitions:
 
Integration Expenses
 
(in millions)
Charges for the nine months ended September 30, 2019
$
12.5


These integration expenses primarily reflect costs incurred for information technology systems and ongoing operational activities incurred in conjunction with the acquisition of MPG. Total restructuring charges and acquisition-related charges are presented on a separate line item titled Restructuring and acquisition-related costs in our Condensed Consolidated Statements of Operations. Restructuring and acquisition-related costs totaled $36.0 million for the nine months ended September 30, 2019, of which $23.5 million were restructuring charges and $12.5 million were acquisition-related charges, and $66.8 million for the nine months ended September 30, 2018, of which $37.7 million were restructuring charges and $29.1 million were acquisition-related charges.

14

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

5. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill The following table provides a reconciliation of changes in goodwill for the nine months ended September 30, 2019:
 
Driveline
 
Metal Forming
 
Powertrain
 
Casting
 
Consolidated
 
(in millions)
Balance at December 31, 2018
$
212.1

 
$
552.4

 
$
377.3

 
$

 
$
1,141.8

Reorganization
187.2

 
190.1

 
(377.3
)
 

 

Foreign currency translation
(5.4
)
 
(8.9
)
 

 

 
(14.3
)
Balance at September 30, 2019
$
393.9

 
$
733.6

 
$

 
$

 
$
1,127.5



In the first quarter of 2019, we initiated a global restructuring program (the 2019 Program) to further streamline our business by consolidating our four existing segments into three segments. See Note 4 - Restructuring and Acquisition-Related Costs for further detail on this reorganization of our segments. Prior to this reorganization, our Powertrain segment was also a reporting unit for purposes of measuring and reporting goodwill. The goodwill that was previously attributable to the Powertrain reporting unit was reallocated to the Driveline and Metal Forming reporting units based on the relative fair value of the respective portions that became attributable to those reporting units.

The initiation of the 2019 Program and the reorganization of our business represented a triggering event in the first quarter of 2019 to test goodwill for impairment prior to reallocating the Powertrain goodwill to Driveline and Metal Forming. No impairment was identified as a result of completing this goodwill impairment test.

Other Intangible Assets The following table provides a reconciliation of the gross carrying amount and associated accumulated amortization for AAM's other intangible assets, which are all subject to amortization:
 
September 30,
 
December 31,
 
2019
 
2018
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
(in millions)
Capitalized computer software
$
41.4

 
$
(26.0
)
 
$
15.4

 
$
38.0

 
$
(20.1
)
 
$
17.9

Customer platforms
856.2

 
(158.6
)
 
697.6

 
952.2

 
(123.5
)
 
828.7

Customer relationships
53.0

 
(8.5
)
 
44.5

 
147.0

 
(16.5
)
 
130.5

Technology and other
155.7

 
(31.7
)
 
124.0

 
156.2

 
(22.2
)
 
134.0

Total
$
1,106.3

 
$
(224.8
)
 
$
881.5

 
$
1,293.4

 
$
(182.3
)
 
$
1,111.1


Amortization expense for our intangible assets was $23.7 million and $73.6 million for the three and nine months ended September 30, 2019, respectively, and $24.8 million and $74.5 million for the three and nine months ended September 30, 2018, respectively. Estimated amortization expense for the full year 2019 is approximately $95 million and estimated amortization expense for each of the full years 2020 through 2023 is approximately $87 million.

15

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

6. INVENTORIES

We state our inventories at the lower of cost or net realizable value.  The cost of our inventories is determined using the first-in first-out method.  When we determine that our gross inventories exceed usage requirements, or if inventories become obsolete or otherwise not saleable, we record a provision for such loss as a component of our inventory accounts.

Inventories consist of the following: 
 
 
September 30, 2019
 
December 31, 2018
 
 
(in millions)
 
 
 
 
 
Raw materials and work-in-progress
 
$
337.3

 
$
375.1

Finished goods
 
88.0

 
99.0

Gross inventories
 
425.3

 
474.1

Inventory valuation reserves
 
(22.2
)
 
(14.4
)
Inventories, net
 
$
403.1

 
$
459.7






16

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

7. LONG-TERM DEBT

Long-term debt consists of the following:
 
 
 
September 30, 2019
 
December 31, 2018
 
 
(in millions)
 
 
 
 
 
Revolving Credit Facility
 
$

 
$

Term Loan A Facility
 
340.0

 
83.8

Term Loan B Facility
 
1,248.6

 
1,511.2

7.75% Notes due 2019
 

 
100.0

6.625% Notes due 2022
 
450.0

 
450.0

6.50% Notes due 2027
 
500.0

 
500.0

6.25% Notes due 2026
 
400.0

 
400.0

6.25% Notes due 2025
 
700.0

 
700.0

Foreign credit facilities and other
 
113.2

 
127.1

Capital lease obligations
 

 
3.4

Total debt
 
3,751.8

 
3,875.5

    Less: Current portion of long-term debt
 
23.8

 
121.6

Long-term debt
 
3,728.0

 
3,753.9

    Less: Debt issuance costs
 
54.7

 
67.1

Long-term debt, net
 
$
3,673.3

 
$
3,686.8



Senior Secured Credit Facilities In 2017, American Axle & Manufacturing Holdings, Inc. (Holdings) and American Axle & Manufacturing, Inc. (AAM, Inc.) entered into a credit agreement (the Credit Agreement). In connection with the Credit Agreement, Holdings, AAM, Inc. and certain of their restricted subsidiaries entered into a Collateral Agreement and Guarantee Agreement with the financial institutions party thereto. The Credit Agreement included a $100.0 million term loan A facility (the Term Loan A Facility), a $1.55 billion term loan B facility (the Term Loan B Facility) and a $932 million multi-currency revolving credit facility (the Revolving Credit Facility, and together with the Term Loan A Facility and the Term Loan B Facility, the Senior Secured Credit Facilities).

In July 2019, Holdings, AAM, Inc., and certain subsidiaries of Holdings entered into the First Amendment (First Amendment) to the Credit Agreement (as amended by the First Amendment, the Amended Credit Agreement). The First Amendment, among other things, established $340 million in incremental term loan A commitments under the Amended Credit Agreement with a maturity date of July 29, 2024 (Term Loan A Facility due 2024), extended the maturity date of the Revolving Credit Facility from April 6, 2022 to July 29, 2024 and modified the applicable margin with respect to interest rates under the Term Loan A Facility due 2024 and interest rates and commitment fees under the Revolving Credit Facility. The applicable margin and the maturity date for the Term Loan B Facility remain unchanged. The proceeds of $340 million were used to repay all of the outstanding loans under the existing Term Loan A Facility and a portion of the outstanding Term Loan B Facility, resulting in no additional indebtedness. In the third quarter of 2019, we expensed $5.1 million for the write-off of the unamortized debt issuance costs related to the existing Term Loan A Facility and a portion of the unamortized debt issuance costs related to our Term Loan B Facility that we had been amortizing over the expected life of the borrowings.

At September 30, 2019, we had $890.8 million available under the Revolving Credit Facility. This availability reflects a reduction of $34.2 million for standby letters of credit issued against the facility. The proceeds of the Revolving Credit Facility are used for general corporate purposes.

The Senior Secured Credit Facilities provide back-up liquidity for our foreign credit facilities.  We intend to use the availability of long-term financing under the Senior Secured Credit Facilities to refinance any current maturities related to such debt agreements that are not otherwise refinanced on a long-term basis in their local markets, except where otherwise reclassified to Current portion of long-term debt on our Condensed Consolidated Balance Sheet.




17

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Foreign credit facilities We utilize local currency credit facilities to finance the operations of certain foreign subsidiaries. At September 30, 2019, $107.8 million was outstanding under our foreign credit facilities, as compared to $127.1 million at December 31, 2018. At September 30, 2019, an additional $93.7 million was available under our foreign credit facilities.

Weighted-Average Interest Rate The weighted-average interest rate of our long-term debt outstanding was 5.8% at September 30, 2019 and 5.9% at December 31, 2018.  

Capital lease obligations Upon our adoption of ASC 842 Leases, our capital (finance) lease obligations are now presented in Accrued expenses and other, and Postretirement benefits and other long-term liabilities on our Condensed Consolidated Balance Sheet. See Note 3 - Leasing for additional detail regarding our adoption of ASC 842.

Redemption of 7.75% Notes due 2019 In the second quarter of 2019, we voluntarily redeemed the remaining balance outstanding under our 7.75% Notes due 2019. This resulted in a principal payment of $100 million and $0.3 million in accrued interest. We also expensed approximately $0.1 million for the write-off of the unamortized debt issuance costs that we had been amortizing over the expected life of the borrowing, and approximately $2.2 million for an early redemption premium.



18

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

8. FAIR VALUE

Accounting Standards Codification 820 - Fair Value Measurement defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”  The definition is based on an exit price rather than an entry price, regardless of whether the entity plans to hold or sell the asset.  This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows:

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.

Financial instruments   The estimated fair value of our financial assets and liabilities that are recognized at fair value on a recurring basis, using available market information and other observable data, are as follows:
 
 
 
September 30, 2019
 
December 31, 2018
 
 
 
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
 
Input
 
 
(in millions)
 
 
Balance Sheet Classification
 
 
 
 
 
 
 
 
 
 
Cash equivalents
 
$
160.7

 
$
160.7

 
$
44.0

 
$
44.0

 
Level 1
Prepaid expenses and other
 
 

 
 

 
 

 
 

 
 
Cash flow hedges - currency forward contracts
 
2.3

 
2.3

 
1.3

 
1.3

 
Level 2
Cash flow hedges - variable-to-fixed interest rate swap
 
1.6

 
1.6

 
0.9

 
0.9

 
Level 2
Nondesignated - currency forward contracts
 
0.2

 
0.2

 
0.6

 
0.6

 
Level 2
Other assets and deferred charges
 
 
 
 
 
 
 
 
 
 
     Cash flow hedges - currency forward contracts
 
0.9

 
0.9

 
0.4

 
0.4

 
Level 2
     Cash flow hedges - fixed-to-fixed cross-currency swap
 
7.0

 
7.0

 

 

 
Level 2
     Cash flow hedges - variable-to-fixed interest rate swap
 
4.0

 
4.0

 
1.6

 
1.6

 
Level 2
Accrued expenses and other
 
 
 
 
 
 
 
 
 
 
     Cash flow hedges - currency forward contracts
 
0.3

 
0.3

 
0.8

 
0.8

 
Level 2
     Cash flow hedges - variable-to-fixed interest rate swap
 
10.0

 
10.0

 
0.7

 
0.7

 
Level 2
     Nondesignated - currency forward contracts
 
0.4

 
0.4

 
0.4

 
0.4

 
Level 2
Postretirement benefits and other long-term liabilities
 
 
 
 
 
 
 
 
 
 
     Cash flow hedges - currency forward contracts
 
0.1

 
0.1

 
0.9

 
0.9