NOTE 20— CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION The financial statements below represent the condensed combined financial statements of the Debtors. The results of the Company's non-Debtor entities are not included in these condensed combined financial statements. Intercompany transactions among the Debtors have been eliminated in the condensed combined Debtors' financial statements. Intercompany transactions between the Debtors and the non-Debtor entities have not been eliminated in the Debtors' financial statements. The Debtors' transfer of trade receivables to non-debtor entities and receipt of receivable collections, net of collection costs are reflected as capital contributions and distributions through Due from affiliates. The Debtors also earn a fee for servicing the contributed receivables from non-Debtor entities, and unpaid servicing fees are reflected in the Due from affiliates balance. The Debtor's loss on sale of receivables and income related to its servicing of receivables are reflected as Other income and expense. The results of operations of the Debtors may not represent the actual results if operating on a stand-alone basis. Debtors’ Balance Sheet (In millions, except per share data) (Unaudited) | | | | | | June 30, | | | 2026 | Assets | | | | Current assets | | | | Cash and cash equivalents | | $ | 60.2 | Accounts receivable, net of allowances (June 30, 2026: $0.6) | | | 42.2 | Inventories | | | 134.5 | Due from affiliates | | | 2,701.1 | Other current assets | | | 70.1 | Total current assets | | | 3,008.1 | Investments in unconsolidated affiliate | | | — | Property, plant and equipment, net of accumulated depreciation (June 30, 2026: $220.5) | | | 158.4 | Other assets | | | | Goodwill | | | — | Other intangible assets, net | | | 259.2 | Right-of-use assets – operating, net | | | 25.2 | Deferred charges and other assets | | | 37.7 | Total other assets | | | 322.1 | Total assets | | $ | 3,488.6 | Liabilities and shareholders’ equity | | | | Current liabilities | | | | Short-term borrowings and current portion of long-term debt | | $ | 443.2 | Accounts payable | | | 72.5 | Current lease liabilities – operating | | | — | Income taxes payable | | | 0.4 | Accrued expenses and other current liabilities | | | 45.4 | Total current liabilities | | | 561.5 | Noncurrent liabilities | | | | Long-term debt, net of unamortized deferred financing fees | | | — | Noncurrent lease liabilities – operating | | | — | Deferred income tax liabilities | | | 17.5 | Other noncurrent obligations | | | 22.7 | Total noncurrent liabilities | | | 40.2 | Liabilities subject to compromise | | | 2,562.3 | Commitments and contingencies (Note 13) | | | | Shareholders’ equity | | | | Equity | | | 324.6 | Total shareholders’ equity | | | 324.6 | Total liabilities and shareholders’ equity | | $ | 3,488.6 |
Debtors’ Statements of Operations (In millions) (Unaudited) | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2026 | Net sales | | $ | 252.5 | | $ | 476.5 | Cost of sales | | | 219.3 | | | 405.3 | Gross profit | | | 33.2 | | | 71.2 | Selling, general and administrative expenses | | | 59.0 | | | 110.3 | Equity in earnings of unconsolidated affiliate | | | — | | | 2.1 | Operating loss | | | (25.8) | | | (37.0) | Interest expense, net | | | 69.7 | | | 146.4 | Reorganization items, net | | | 41.3 | | | 41.3 | Other expense (income), net | | | (15.7) | | | 3.7 | Loss before income taxes | | | (121.1) | | | (228.4) | Provision for (benefit from) income taxes | | | (2.0) | | | 2.7 | Net loss | | $ | (119.1) | | $ | (231.1) |
Debtors’ Statement of Cash Flows (In millions) (Unaudited) | | | | | | Six Months Ended | | | June 30, | | | 2026 | Cash flows from operating activities | | | | Net cash used in operating activities | | $ | (328.3) | Cash flows from investing activities | | | | Capital expenditures | | | (6.6) | Cash used in investing activities | | | (6.6) | Cash flows from financing activities | | | | Payments for debt issuance and extinguishment costs | | | (10.8) | Repurchases and repayments of long-term debt | | | (3.0) | Proceeds from Revolving Facility | | | 304.6 | Repayments of Revolving Facility | | | (41.2) | Borrowing under the DIP Facility | | | 142.5 | Cash provided by financing activities | | | 392.1 | Effect of exchange rates on cash | | | — | Net change in cash, cash equivalents, and restricted cash | | | 57.2 | Cash, cash equivalents, and restricted cash—beginning of period | | | 17.4 | Cash, cash equivalents, and restricted cash—end of period | | $ | 74.6 | Less: Restricted cash (included within "Other Current Assets") | | | 14.4 | Cash and cash equivalents—end of period | | $ | 60.2 |
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