00010622312020FYFALSE00010622312020-01-012020-12-31iso4217:USD00010622312020-06-30xbrli:shares00010622312021-02-0900010622312019-01-012019-12-3100010622312018-01-012018-12-31iso4217:USDxbrli:shares00010622312020-12-3100010622312019-12-310001062231us-gaap:PreferredStockMember2020-12-310001062231us-gaap:PreferredStockMember2019-12-310001062231axl:SeriesCommonStockMember2019-12-310001062231axl:SeriesCommonStockMember2020-12-310001062231us-gaap:CommonStockMember2019-12-310001062231us-gaap:CommonStockMember2020-12-3100010622312018-12-3100010622312017-12-310001062231axl:Twelveyeardeferredpaymentobligationat6Member2020-01-012020-12-310001062231axl:Twelveyeardeferredpaymentobligationat6Member2019-01-012019-12-310001062231axl:Twelveyeardeferredpaymentobligationat6Member2018-01-012018-12-310001062231us-gaap:CommonStockMember2017-12-310001062231us-gaap:AdditionalPaidInCapitalMember2017-12-310001062231us-gaap:RetainedEarningsMember2017-12-310001062231us-gaap:TreasuryStockMember2017-12-310001062231us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310001062231us-gaap:NoncontrollingInterestMember2017-12-310001062231us-gaap:RetainedEarningsMember2018-01-012018-12-310001062231us-gaap:NoncontrollingInterestMember2018-01-012018-12-310001062231us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-12-310001062231us-gaap:AdditionalPaidInCapitalMember2018-01-012018-12-310001062231us-gaap:TreasuryStockMember2018-01-012018-12-310001062231us-gaap:CommonStockMember2018-12-310001062231us-gaap:AdditionalPaidInCapitalMember2018-12-310001062231us-gaap:RetainedEarningsMember2018-12-310001062231us-gaap:TreasuryStockMember2018-12-310001062231us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001062231us-gaap:NoncontrollingInterestMember2018-12-310001062231us-gaap:RetainedEarningsMember2019-01-012019-12-310001062231us-gaap:NoncontrollingInterestMember2019-01-012019-12-310001062231us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-12-310001062231us-gaap:AdditionalPaidInCapitalMember2019-01-012019-12-310001062231us-gaap:RetainedEarningsMemberaxl:ASU201602Member2019-01-012019-12-310001062231axl:ASU201802Memberus-gaap:RetainedEarningsMember2019-01-012019-12-310001062231axl:ASU201802Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-12-310001062231us-gaap:TreasuryStockMember2019-01-012019-12-310001062231us-gaap:CommonStockMember2019-12-310001062231us-gaap:AdditionalPaidInCapitalMember2019-12-310001062231us-gaap:RetainedEarningsMember2019-12-310001062231us-gaap:TreasuryStockMember2019-12-310001062231us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001062231us-gaap:NoncontrollingInterestMember2019-12-310001062231us-gaap:RetainedEarningsMember2020-01-012020-12-310001062231us-gaap:NoncontrollingInterestMember2020-01-012020-12-310001062231us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-12-310001062231us-gaap:AdditionalPaidInCapitalMember2020-01-012020-12-310001062231axl:ASU201613Memberus-gaap:RetainedEarningsMember2020-01-012020-12-310001062231us-gaap:TreasuryStockMember2020-01-012020-12-310001062231us-gaap:CommonStockMember2020-12-310001062231us-gaap:AdditionalPaidInCapitalMember2020-12-310001062231us-gaap:RetainedEarningsMember2020-12-310001062231us-gaap:TreasuryStockMember2020-12-310001062231us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001062231us-gaap:NoncontrollingInterestMember2020-12-31axl:Employeesaxl:Facilitiesaxl:Countries0001062231us-gaap:LandMember2020-01-012020-12-310001062231us-gaap:LandMember2019-01-012019-12-310001062231srt:MinimumMemberus-gaap:LandImprovementsMember2019-01-012019-12-310001062231srt:MinimumMemberus-gaap:LandImprovementsMember2020-01-012020-12-310001062231srt:MaximumMemberus-gaap:LandImprovementsMember2020-01-012020-12-310001062231srt:MaximumMemberus-gaap:LandImprovementsMember2019-01-012019-12-310001062231srt:MinimumMemberus-gaap:BuildingAndBuildingImprovementsMember2019-01-012019-12-310001062231srt:MinimumMemberus-gaap:BuildingAndBuildingImprovementsMember2020-01-012020-12-310001062231us-gaap:BuildingAndBuildingImprovementsMembersrt:MaximumMember2020-01-012020-12-310001062231us-gaap:BuildingAndBuildingImprovementsMembersrt:MaximumMember2019-01-012019-12-310001062231srt:MinimumMemberus-gaap:MachineryAndEquipmentMember2019-01-012019-12-310001062231srt:MinimumMemberus-gaap:MachineryAndEquipmentMember2020-01-012020-12-310001062231us-gaap:MachineryAndEquipmentMembersrt:MaximumMember2020-01-012020-12-310001062231us-gaap:MachineryAndEquipmentMembersrt:MaximumMember2019-01-012019-12-310001062231us-gaap:RevolvingCreditFacilityMember2020-12-310001062231us-gaap:RevolvingCreditFacilityMember2019-12-310001062231axl:LossCarrybackRelatedToTheCARESActMember2020-01-012020-12-310001062231axl:CARESActMember2020-01-012020-12-310001062231axl:A2016RestructuringPlanEmployeeSeveranceMember2016-10-012019-12-310001062231axl:A2016RestructuringPlanOtherRestructuringMember2016-10-012019-12-310001062231us-gaap:EmployeeSeveranceMember2017-12-310001062231us-gaap:OtherRestructuringMember2017-12-310001062231axl:AssetImpairmentMember2017-12-310001062231us-gaap:EmployeeSeveranceMember2018-01-012018-12-310001062231us-gaap:OtherRestructuringMember2018-01-012018-12-310001062231axl:AssetImpairmentMember2018-01-012018-12-310001062231us-gaap:EmployeeSeveranceMember2018-12-310001062231us-gaap:OtherRestructuringMember2018-12-310001062231axl:AssetImpairmentMember2018-12-310001062231us-gaap:EmployeeSeveranceMember2019-01-012019-12-310001062231us-gaap:OtherRestructuringMember2019-01-012019-12-310001062231axl:AssetImpairmentMember2019-01-012019-12-310001062231us-gaap:EmployeeSeveranceMember2019-12-310001062231us-gaap:OtherRestructuringMember2019-12-310001062231axl:AssetImpairmentMember2019-12-310001062231us-gaap:EmployeeSeveranceMember2020-01-012020-12-310001062231us-gaap:OtherRestructuringMember2020-01-012020-12-310001062231axl:AssetImpairmentMember2020-01-012020-12-310001062231us-gaap:EmployeeSeveranceMember2020-12-310001062231us-gaap:OtherRestructuringMember2020-12-310001062231axl:AssetImpairmentMember2020-12-310001062231axl:A2020RestructuringPlanMember2020-01-012020-12-310001062231axl:DrivelineMember2020-01-012020-12-310001062231axl:MetalFormingMember2020-01-012020-12-310001062231axl:DrivelineMember2019-01-012019-12-310001062231axl:MetalFormingMember2019-01-012019-12-310001062231axl:CastingMember2019-01-012019-12-310001062231axl:DrivelineMember2018-01-012018-12-310001062231axl:MetalFormingMember2018-01-012018-12-310001062231axl:CastingMember2018-01-012018-12-310001062231srt:MinimumMember2020-12-310001062231srt:MaximumMember2020-12-310001062231axl:DrivelineMember2018-12-310001062231axl:MetalFormingMember2018-12-310001062231axl:PowertrainMember2018-12-310001062231axl:PowertrainMember2019-01-012019-12-310001062231axl:DrivelineMember2019-12-310001062231axl:MetalFormingMember2019-12-310001062231axl:PowertrainMember2019-12-310001062231axl:PowertrainMember2020-01-012020-12-310001062231axl:DrivelineMember2020-12-310001062231axl:MetalFormingMember2020-12-310001062231axl:PowertrainMember2020-12-310001062231axl:PowertrainMember2018-01-012018-12-310001062231us-gaap:ComputerSoftwareIntangibleAssetMember2020-12-310001062231us-gaap:ComputerSoftwareIntangibleAssetMember2019-12-310001062231axl:CustomerPlatformsIntangibleAssetsMember2020-12-310001062231axl:CustomerPlatformsIntangibleAssetsMember2019-12-310001062231axl:CustomerRelationshipsIntangibleAssetsMember2020-12-310001062231axl:CustomerRelationshipsIntangibleAssetsMember2019-12-310001062231us-gaap:TechnologyBasedIntangibleAssetsMember2020-12-310001062231us-gaap:TechnologyBasedIntangibleAssetsMember2019-12-310001062231axl:MultiCurrencyCreditFacilityMember2020-12-310001062231axl:MultiCurrencyCreditFacilityMember2019-12-310001062231axl:TermLoanADue2024Memberus-gaap:SecuredDebtMember2020-12-310001062231axl:TermLoanADue2024Memberus-gaap:SecuredDebtMember2019-12-310001062231us-gaap:SecuredDebtMemberaxl:TermLoanBMember2020-12-310001062231us-gaap:SecuredDebtMemberaxl:TermLoanBMember2019-12-310001062231axl:A6875NotesMemberus-gaap:UnsecuredDebtMember2020-12-310001062231axl:A6875NotesMemberus-gaap:UnsecuredDebtMember2019-12-310001062231axl:A6625NotesMemberus-gaap:UnsecuredDebtMember2020-12-310001062231axl:A6625NotesMemberus-gaap:UnsecuredDebtMember2019-12-310001062231us-gaap:UnsecuredDebtMemberaxl:A6.50NotesMember2020-12-310001062231us-gaap:UnsecuredDebtMemberaxl:A6.50NotesMember2019-12-310001062231axl:A6.25NotesDue2026Memberus-gaap:UnsecuredDebtMember2020-12-310001062231axl:A6.25NotesDue2026Memberus-gaap:UnsecuredDebtMember2019-12-310001062231axl:A6.25Notesdue2025Memberus-gaap:UnsecuredDebtMember2020-12-310001062231axl:A6.25Notesdue2025Memberus-gaap:UnsecuredDebtMember2019-12-310001062231axl:ForeignCreditFacilitiesandOtherMember2020-12-310001062231axl:ForeignCreditFacilitiesandOtherMember2019-12-310001062231axl:TotalDebtInstrumentsexcludingRevolvingCreditFacilityMember2020-12-310001062231axl:TotalDebtInstrumentsexcludingRevolvingCreditFacilityMember2019-12-310001062231axl:TermLoanAMember2017-04-062017-04-060001062231axl:TermLoanBMember2017-04-062017-04-060001062231axl:MultiCurrencyCreditFacilityMember2017-04-060001062231axl:TermLoanADue2024Memberus-gaap:SecuredDebtMember2019-07-290001062231axl:MultiCurrencyCreditFacilityMember2019-07-290001062231us-gaap:SecuredDebtMemberaxl:TermLoanATermLoanBMember2019-01-012019-12-310001062231us-gaap:SecuredDebtMemberaxl:TermLoanBMember2019-01-012019-12-310001062231axl:SecondAmendmentToTheCreditAmendmentsMemberus-gaap:SecuredDebtMember2020-01-012020-12-310001062231us-gaap:SecuredDebtMemberaxl:TermLoanBMember2020-01-012020-12-310001062231axl:TermLoanADue2024Memberus-gaap:SecuredDebtMember2020-01-012020-12-310001062231us-gaap:SecuredDebtMemberaxl:TermLoanATermLoanBMember2020-01-012020-12-310001062231axl:A6875NotesMemberus-gaap:UnsecuredDebtMember2020-06-30xbrli:pure0001062231axl:A6875NotesMember2020-06-300001062231axl:A6625NotesMemberus-gaap:UnsecuredDebtMember2020-09-300001062231axl:A6625NotesMember2020-09-300001062231axl:A6875NotesMemberus-gaap:UnsecuredDebtMember2020-01-012020-12-310001062231axl:A6625NotesMember2020-03-310001062231axl:A6625NotesMemberus-gaap:UnsecuredDebtMember2020-03-310001062231axl:A6625NotesMemberus-gaap:UnsecuredDebtMember2020-01-012020-03-310001062231axl:A6625NotesMemberus-gaap:UnsecuredDebtMember2020-07-012020-09-300001062231axl:A6625NotesMember2018-06-300001062231axl:A6625NotesMemberus-gaap:UnsecuredDebtMember2018-06-300001062231axl:A6625NotesMemberus-gaap:UnsecuredDebtMember2018-01-012018-12-310001062231axl:A775NotesMember2019-06-300001062231axl:A775NotesMemberus-gaap:UnsecuredDebtMember2019-06-300001062231axl:A775NotesMemberus-gaap:UnsecuredDebtMember2019-01-012019-12-310001062231axl:A775NotesMember2018-12-310001062231axl:A775NotesMemberus-gaap:UnsecuredDebtMember2018-12-310001062231axl:A775NotesMemberus-gaap:UnsecuredDebtMember2018-01-012018-12-310001062231axl:A6.25NotesDue2026Memberus-gaap:UnsecuredDebtMember2018-03-310001062231axl:A6.25NotesDue2026Member2018-03-310001062231axl:A6.25NotesDue2026Memberus-gaap:UnsecuredDebtMember2018-01-012018-12-310001062231axl:A6.25NotesDue2021Member2018-03-310001062231axl:A6.25NotesDue2021Memberus-gaap:UnsecuredDebtMember2018-03-310001062231axl:A6.25NotesDue2021Memberus-gaap:UnsecuredDebtMember2018-01-012018-12-310001062231axl:ForeignCreditFacilitiesMember2020-12-310001062231axl:ForeignCreditFacilitiesMember2019-12-310001062231axl:ForeignCurrencyForwardForeignCurrencyOptionContractsMember2020-12-310001062231axl:ForeignCurrencyForwardForeignCurrencyOptionContractsMember2019-12-310001062231us-gaap:CurrencySwapMember2020-03-090001062231us-gaap:CurrencySwapMember2020-12-310001062231us-gaap:CurrencySwapMember2019-12-310001062231us-gaap:DebtMemberus-gaap:InterestRateSwapMember2018-01-012018-12-310001062231us-gaap:DebtMemberus-gaap:InterestRateSwapMember2019-05-280001062231us-gaap:DebtMemberus-gaap:InterestRateSwapMember2020-12-310001062231us-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMember2018-01-012018-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMember2020-01-012020-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMember2019-01-012019-12-310001062231us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMember2020-01-012020-12-310001062231us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMember2019-01-012019-12-310001062231us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMember2018-01-012018-12-310001062231us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2020-01-012020-12-310001062231us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2019-01-012019-12-310001062231us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2018-01-012018-12-310001062231us-gaap:NondesignatedMember2020-01-012020-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:CostOfSalesMember2020-01-012020-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:CostOfSalesMember2019-01-012019-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:CostOfSalesMember2018-01-012018-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:OtherNonoperatingIncomeExpenseMember2018-01-012018-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:OtherNonoperatingIncomeExpenseMember2019-01-012019-12-310001062231us-gaap:ForeignExchangeForwardMemberus-gaap:OtherNonoperatingIncomeExpenseMember2020-01-012020-12-310001062231axl:GeneralMotorsMember2020-01-012020-12-310001062231axl:GeneralMotorsMember2019-01-012019-12-310001062231axl:GeneralMotorsMember2018-01-012018-12-310001062231axl:GeneralMotorsMember2020-12-310001062231axl:GeneralMotorsMember2019-12-310001062231axl:FCAMember2020-01-012020-12-310001062231axl:FCAMember2019-01-012019-12-310001062231axl:FCAMember2018-01-012018-12-310001062231axl:FCAMember2020-12-310001062231axl:FCAMember2019-12-310001062231axl:FordMember2020-01-012020-12-310001062231axl:FordMember2019-01-012019-12-310001062231axl:FordMember2018-01-012018-12-310001062231axl:FordMember2020-12-310001062231axl:FordMember2019-12-310001062231us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:NondesignatedMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:NondesignatedMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:NondesignatedMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:NondesignatedMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherNoncurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherNoncurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentAssetsMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentAssetsMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:AccruedLiabilitiesMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:AccruedLiabilitiesMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMemberus-gaap:InterestRateSwapMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:AccruedLiabilitiesMemberus-gaap:InterestRateSwapMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMemberus-gaap:InterestRateSwapMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:AccruedLiabilitiesMemberus-gaap:InterestRateSwapMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:RevolvingCreditFacilityMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:RevolvingCreditFacilityMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:RevolvingCreditFacilityMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:RevolvingCreditFacilityMember2019-12-310001062231axl:TermLoanADue2024Memberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001062231axl:TermLoanADue2024Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001062231axl:TermLoanADue2024Memberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001062231axl:TermLoanADue2024Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberaxl:TermLoanBMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberaxl:TermLoanBMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberaxl:TermLoanBMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberaxl:TermLoanBMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6875NotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6875NotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6875NotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6875NotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6625NotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6625NotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6625NotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6625NotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberaxl:A6.50NotesMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6.50NotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberaxl:A6.50NotesMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6.50NotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001062231axl:A6.25NotesDue2026Memberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001062231axl:A6.25NotesDue2026Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001062231axl:A6.25NotesDue2026Memberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001062231axl:A6.25NotesDue2026Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6.25Notesdue2025Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6.25Notesdue2025Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6.25Notesdue2025Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:A6.25Notesdue2025Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001062231us-gaap:DomesticPlanMember2020-01-012020-12-310001062231us-gaap:ForeignPlanMember2020-01-012020-12-310001062231us-gaap:DomesticPlanMember2019-01-012019-12-310001062231us-gaap:ForeignPlanMember2019-01-012019-12-310001062231us-gaap:DomesticPlanMember2018-01-012018-12-310001062231us-gaap:ForeignPlanMember2018-01-012018-12-310001062231us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-12-310001062231us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-01-012019-12-310001062231us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2018-01-012018-12-310001062231us-gaap:PensionPlansDefinedBenefitMember2019-12-310001062231us-gaap:PensionPlansDefinedBenefitMember2018-12-310001062231us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-12-310001062231us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2018-12-310001062231us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-12-310001062231us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-12-310001062231us-gaap:PensionPlansDefinedBenefitMember2020-12-310001062231us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-12-310001062231us-gaap:PensionPlansDefinedBenefitMember2018-01-012018-12-310001062231us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2020-01-012020-12-310001062231axl:TerminatedvestedlumpsumpaymentofferMember2019-12-310001062231axl:TerminatedvestedlumpsumpaymentofferMember2019-01-012019-12-310001062231us-gaap:DomesticPlanMemberus-gaap:EquitySecuritiesMember2020-12-310001062231us-gaap:DomesticPlanMemberus-gaap:EquitySecuritiesMember2019-12-310001062231us-gaap:DomesticPlanMemberus-gaap:EquitySecuritiesMember2020-01-012020-12-310001062231us-gaap:ForeignPlanMemberus-gaap:EquitySecuritiesMember2020-12-310001062231us-gaap:ForeignPlanMemberus-gaap:EquitySecuritiesMember2019-12-310001062231us-gaap:ForeignPlanMemberus-gaap:EquitySecuritiesMember2020-01-012020-12-310001062231us-gaap:FixedIncomeFundsMemberus-gaap:DomesticPlanMember2020-12-310001062231us-gaap:FixedIncomeFundsMemberus-gaap:DomesticPlanMember2019-12-310001062231us-gaap:FixedIncomeFundsMemberus-gaap:DomesticPlanMember2020-01-012020-12-310001062231us-gaap:FixedIncomeFundsMemberus-gaap:ForeignPlanMember2020-12-310001062231us-gaap:FixedIncomeFundsMemberus-gaap:ForeignPlanMember2019-12-310001062231us-gaap:FixedIncomeFundsMemberus-gaap:ForeignPlanMember2020-01-012020-12-310001062231us-gaap:HedgeFundsMemberus-gaap:DomesticPlanMember2020-12-310001062231us-gaap:HedgeFundsMemberus-gaap:DomesticPlanMember2019-12-310001062231us-gaap:HedgeFundsMemberus-gaap:DomesticPlanMember2020-01-012020-12-310001062231us-gaap:HedgeFundsMemberus-gaap:ForeignPlanMember2020-12-310001062231us-gaap:HedgeFundsMemberus-gaap:ForeignPlanMember2019-12-310001062231us-gaap:HedgeFundsMemberus-gaap:ForeignPlanMember2020-01-012020-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:DomesticPlanMember2020-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:DomesticPlanMember2019-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:DomesticPlanMember2020-01-012020-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:ForeignPlanMember2020-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:ForeignPlanMember2019-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:ForeignPlanMember2020-01-012020-12-310001062231us-gaap:DomesticPlanMember2020-12-310001062231us-gaap:DomesticPlanMember2019-12-310001062231us-gaap:ForeignPlanMember2020-12-310001062231us-gaap:ForeignPlanMember2019-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CashAndCashEquivalentsMember2020-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231us-gaap:CashAndCashEquivalentsMember2020-12-310001062231us-gaap:FairValueInputsLevel1Memberaxl:USLargeCapMember2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:USLargeCapMember2020-12-310001062231us-gaap:FairValueInputsLevel3Memberaxl:USLargeCapMember2020-12-310001062231axl:USLargeCapMember2020-12-310001062231axl:USSmallmidCapMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:USSmallmidCapMember2020-12-310001062231axl:USSmallmidCapMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231axl:USSmallmidCapMember2020-12-310001062231axl:WorldEquityMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:WorldEquityMember2020-12-310001062231axl:WorldEquityMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231axl:WorldEquityMember2020-12-310001062231axl:GovernmentAgenciesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:GovernmentAgenciesMember2020-12-310001062231axl:GovernmentAgenciesMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231axl:GovernmentAgenciesMember2020-12-310001062231axl:InvestmentGradeCorporateBondsMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:InvestmentGradeCorporateBondsMember2020-12-310001062231axl:InvestmentGradeCorporateBondsMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231axl:InvestmentGradeCorporateBondsMember2020-12-310001062231axl:NoninvestmentGradeCorporateBondsMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:NoninvestmentGradeCorporateBondsMember2020-12-310001062231axl:NoninvestmentGradeCorporateBondsMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231axl:NoninvestmentGradeCorporateBondsMember2020-12-310001062231axl:EmergingMarketDebtMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:EmergingMarketDebtMember2020-12-310001062231axl:EmergingMarketDebtMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231axl:EmergingMarketDebtMember2020-12-310001062231us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001062231us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231us-gaap:FixedIncomeSecuritiesMember2020-12-310001062231us-gaap:CommercialRealEstateMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:CommercialRealEstateMemberus-gaap:FairValueInputsLevel2Member2020-12-310001062231us-gaap:CommercialRealEstateMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231us-gaap:CommercialRealEstateMember2020-12-310001062231axl:LiquidAlternativesFundMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231axl:LiquidAlternativesFundMemberus-gaap:FairValueInputsLevel2Member2020-12-310001062231axl:LiquidAlternativesFundMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231axl:LiquidAlternativesFundMember2020-12-310001062231axl:HedgeFundsStructuredCreditFundMemberus-gaap:FairValueInputsLevel1Member2020-12-310001062231axl:HedgeFundsStructuredCreditFundMemberus-gaap:FairValueInputsLevel2Member2020-12-310001062231axl:HedgeFundsStructuredCreditFundMemberus-gaap:FairValueInputsLevel3Member2020-12-310001062231axl:HedgeFundsStructuredCreditFundMember2020-12-310001062231us-gaap:FairValueInputsLevel1Member2020-12-310001062231us-gaap:FairValueInputsLevel2Member2020-12-310001062231us-gaap:FairValueInputsLevel3Member2020-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Memberus-gaap:CashAndCashEquivalentsMember2019-12-310001062231us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231us-gaap:CashAndCashEquivalentsMember2019-12-310001062231us-gaap:FairValueInputsLevel1Memberaxl:USLargeCapMember2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:USLargeCapMember2019-12-310001062231us-gaap:FairValueInputsLevel3Memberaxl:USLargeCapMember2019-12-310001062231axl:USLargeCapMember2019-12-310001062231axl:USSmallmidCapMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:USSmallmidCapMember2019-12-310001062231axl:USSmallmidCapMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231axl:USSmallmidCapMember2019-12-310001062231axl:WorldEquityMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:WorldEquityMember2019-12-310001062231axl:WorldEquityMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231axl:WorldEquityMember2019-12-310001062231axl:GovernmentAgenciesMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:GovernmentAgenciesMember2019-12-310001062231axl:GovernmentAgenciesMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231axl:GovernmentAgenciesMember2019-12-310001062231axl:InvestmentGradeCorporateBondsMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:InvestmentGradeCorporateBondsMember2019-12-310001062231axl:InvestmentGradeCorporateBondsMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231axl:InvestmentGradeCorporateBondsMember2019-12-310001062231axl:NoninvestmentGradeCorporateBondsMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:NoninvestmentGradeCorporateBondsMember2019-12-310001062231axl:NoninvestmentGradeCorporateBondsMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231axl:NoninvestmentGradeCorporateBondsMember2019-12-310001062231axl:EmergingMarketDebtMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Memberaxl:EmergingMarketDebtMember2019-12-310001062231axl:EmergingMarketDebtMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231axl:EmergingMarketDebtMember2019-12-310001062231us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-12-310001062231us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231us-gaap:FixedIncomeSecuritiesMember2019-12-310001062231us-gaap:CommercialRealEstateMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:CommercialRealEstateMemberus-gaap:FairValueInputsLevel2Member2019-12-310001062231us-gaap:CommercialRealEstateMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231us-gaap:CommercialRealEstateMember2019-12-310001062231axl:LiquidAlternativesFundMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231axl:LiquidAlternativesFundMemberus-gaap:FairValueInputsLevel2Member2019-12-310001062231axl:LiquidAlternativesFundMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231axl:LiquidAlternativesFundMember2019-12-310001062231axl:HedgeFundsStructuredCreditFundMemberus-gaap:FairValueInputsLevel1Member2019-12-310001062231axl:HedgeFundsStructuredCreditFundMemberus-gaap:FairValueInputsLevel2Member2019-12-310001062231axl:HedgeFundsStructuredCreditFundMemberus-gaap:FairValueInputsLevel3Member2019-12-310001062231axl:HedgeFundsStructuredCreditFundMember2019-12-310001062231us-gaap:FairValueInputsLevel1Member2019-12-310001062231us-gaap:FairValueInputsLevel2Member2019-12-310001062231us-gaap:FairValueInputsLevel3Member2019-12-310001062231srt:MinimumMemberaxl:AnnualRetirementContributionArcMember2019-01-012019-12-310001062231srt:MaximumMemberaxl:AnnualRetirementContributionArcMember2019-01-012019-12-310001062231axl:AnnualRetirementContributionArcMember2020-01-012020-12-310001062231axl:AnnualRetirementContributionArcMember2019-01-012019-12-310001062231axl:AnnualRetirementContributionArcMember2018-01-012018-12-310001062231us-gaap:RestrictedStockUnitsRSUMember2017-12-310001062231us-gaap:RestrictedStockUnitsRSUMember2018-01-012018-12-310001062231us-gaap:RestrictedStockUnitsRSUMember2018-12-310001062231us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-12-310001062231us-gaap:RestrictedStockUnitsRSUMember2019-12-310001062231us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-12-310001062231us-gaap:RestrictedStockUnitsRSUMember2020-12-310001062231us-gaap:PerformanceSharesMemberaxl:EBITDAAwardMember2017-12-310001062231us-gaap:PerformanceSharesMemberaxl:EBITDAAwardMember2018-01-012018-12-310001062231us-gaap:PerformanceSharesMemberaxl:EBITDAAwardMember2018-12-310001062231us-gaap:PerformanceSharesMemberaxl:EBITDAAwardMember2019-01-012019-12-310001062231us-gaap:PerformanceSharesMemberaxl:EBITDAAwardMember2019-12-310001062231us-gaap:PerformanceSharesMemberaxl:EBITDAAwardMember2020-01-012020-12-310001062231us-gaap:PerformanceSharesMemberaxl:EBITDAAwardMember2020-12-310001062231axl:TotalShareholderReturnTSRAwardsMemberus-gaap:PerformanceSharesMember2017-12-310001062231axl:TotalShareholderReturnTSRAwardsMemberus-gaap:PerformanceSharesMember2018-01-012018-12-310001062231axl:TotalShareholderReturnTSRAwardsMemberus-gaap:PerformanceSharesMember2018-12-310001062231axl:TotalShareholderReturnTSRAwardsMemberus-gaap:PerformanceSharesMember2019-01-012019-12-310001062231axl:TotalShareholderReturnTSRAwardsMemberus-gaap:PerformanceSharesMember2019-12-310001062231axl:TotalShareholderReturnTSRAwardsMemberus-gaap:PerformanceSharesMember2020-01-012020-12-310001062231axl:TotalShareholderReturnTSRAwardsMemberus-gaap:PerformanceSharesMember2020-12-310001062231axl:FreeCashFlowFCFAwardsMemberus-gaap:PerformanceSharesMember2017-12-310001062231axl:FreeCashFlowFCFAwardsMemberus-gaap:PerformanceSharesMember2018-01-012018-12-310001062231axl:FreeCashFlowFCFAwardsMemberus-gaap:PerformanceSharesMember2018-12-310001062231axl:FreeCashFlowFCFAwardsMemberus-gaap:PerformanceSharesMember2019-01-012019-12-310001062231axl:FreeCashFlowFCFAwardsMemberus-gaap:PerformanceSharesMember2019-12-310001062231axl:FreeCashFlowFCFAwardsMemberus-gaap:PerformanceSharesMember2020-01-012020-12-310001062231axl:FreeCashFlowFCFAwardsMemberus-gaap:PerformanceSharesMember2020-12-310001062231us-gaap:PerformanceSharesMember2020-12-310001062231us-gaap:PerformanceSharesMember2020-01-012020-12-310001062231axl:FreeCashFlowFCFAwardsMemberaxl:PerformanceUnitsMember2020-01-012020-12-310001062231axl:FreeCashFlowFCFAwardsMemberaxl:PerformanceUnitsMember2019-01-012019-12-310001062231axl:FreeCashFlowFCFAwardsMemberaxl:PerformanceUnitsMember2020-12-310001062231us-gaap:SettlementWithTaxingAuthorityMember2020-01-012020-12-310001062231country:US2020-01-012020-12-310001062231axl:TransitiontaxMember2019-01-012019-12-310001062231us-gaap:ForeignCountryMember2018-01-012018-12-310001062231us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001062231us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001062231us-gaap:AccruedLiabilitiesMember2020-12-310001062231us-gaap:AccruedLiabilitiesMember2019-12-310001062231axl:DeferredTaxAssetsMember2020-12-310001062231axl:DeferredTaxAssetsMember2019-12-310001062231axl:DeferredTaxLiabilitiesMember2020-12-310001062231axl:DeferredTaxLiabilitiesMember2019-12-310001062231axl:DomesticMember2020-12-310001062231axl:DomesticMember2019-12-310001062231axl:ForeignMember2020-12-310001062231axl:ForeignMember2019-12-310001062231us-gaap:ForeignCountryMember2019-01-012019-12-3100010622312020-04-012020-06-300001062231us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2017-12-310001062231us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2017-12-310001062231us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2017-12-310001062231us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2017-12-310001062231us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-01-012018-12-310001062231us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-01-012018-12-310001062231us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2018-01-012018-12-310001062231us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2018-01-012018-12-310001062231us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-12-310001062231us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2018-12-310001062231us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2018-12-310001062231us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2018-12-310001062231us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-01-012019-12-310001062231us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-01-012019-12-310001062231us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2019-01-012019-12-310001062231us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-01-012019-12-310001062231us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310001062231us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310001062231us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310001062231us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310001062231us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-12-310001062231us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-12-310001062231us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-12-310001062231us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-12-310001062231us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001062231us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001062231us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001062231us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001062231us-gaap:OtherIncomeMemberaxl:NeteffectofAAMPensionPayoutandtheCastingSaleMember2019-01-012019-12-310001062231us-gaap:CostOfSalesMember2020-01-012020-12-310001062231us-gaap:InterestExpenseMember2020-01-012020-12-310001062231us-gaap:OtherIncomeMember2020-01-012020-12-310001062231us-gaap:CostOfSalesMember2019-01-012019-12-310001062231us-gaap:InterestExpenseMember2019-01-012019-12-310001062231us-gaap:OtherIncomeMember2019-01-012019-12-310001062231us-gaap:CostOfSalesMember2018-01-012018-12-310001062231us-gaap:InterestExpenseMember2018-01-012018-12-310001062231axl:ASU201802Member2019-01-012019-12-310001062231axl:DrivelineMembersrt:NorthAmericaMember2020-01-012020-12-310001062231axl:MetalFormingMembersrt:NorthAmericaMember2020-01-012020-12-310001062231axl:CastingMembersrt:NorthAmericaMember2020-01-012020-12-310001062231srt:NorthAmericaMember2020-01-012020-12-310001062231srt:AsiaMemberaxl:DrivelineMember2020-01-012020-12-310001062231axl:MetalFormingMembersrt:AsiaMember2020-01-012020-12-310001062231axl:CastingMembersrt:AsiaMember2020-01-012020-12-310001062231srt:AsiaMember2020-01-012020-12-310001062231axl:DrivelineMembersrt:EuropeMember2020-01-012020-12-310001062231axl:MetalFormingMembersrt:EuropeMember2020-01-012020-12-310001062231axl:CastingMembersrt:EuropeMember2020-01-012020-12-310001062231srt:EuropeMember2020-01-012020-12-310001062231axl:DrivelineMembersrt:SouthAmericaMember2020-01-012020-12-310001062231axl:MetalFormingMembersrt:SouthAmericaMember2020-01-012020-12-310001062231axl:CastingMembersrt:SouthAmericaMember2020-01-012020-12-310001062231srt:SouthAmericaMember2020-01-012020-12-310001062231axl:CastingMember2020-01-012020-12-310001062231axl:DrivelineMembersrt:NorthAmericaMember2019-01-012019-12-310001062231axl:MetalFormingMembersrt:NorthAmericaMember2019-01-012019-12-310001062231axl:CastingMembersrt:NorthAmericaMember2019-01-012019-12-310001062231srt:NorthAmericaMember2019-01-012019-12-310001062231srt:AsiaMemberaxl:DrivelineMember2019-01-012019-12-310001062231axl:MetalFormingMembersrt:AsiaMember2019-01-012019-12-310001062231axl:CastingMembersrt:AsiaMember2019-01-012019-12-310001062231srt:AsiaMember2019-01-012019-12-310001062231axl:DrivelineMembersrt:EuropeMember2019-01-012019-12-310001062231axl:MetalFormingMembersrt:EuropeMember2019-01-012019-12-310001062231axl:CastingMembersrt:EuropeMember2019-01-012019-12-310001062231srt:EuropeMember2019-01-012019-12-310001062231axl:DrivelineMembersrt:SouthAmericaMember2019-01-012019-12-310001062231axl:MetalFormingMembersrt:SouthAmericaMember2019-01-012019-12-310001062231axl:CastingMembersrt:SouthAmericaMember2019-01-012019-12-310001062231srt:SouthAmericaMember2019-01-012019-12-310001062231axl:DrivelineMembersrt:NorthAmericaMember2018-01-012018-12-310001062231axl:MetalFormingMembersrt:NorthAmericaMember2018-01-012018-12-310001062231axl:CastingMembersrt:NorthAmericaMember2018-01-012018-12-310001062231srt:NorthAmericaMember2018-01-012018-12-310001062231srt:AsiaMemberaxl:DrivelineMember2018-01-012018-12-310001062231axl:MetalFormingMembersrt:AsiaMember2018-01-012018-12-310001062231axl:CastingMembersrt:AsiaMember2018-01-012018-12-310001062231srt:AsiaMember2018-01-012018-12-310001062231axl:DrivelineMembersrt:EuropeMember2018-01-012018-12-310001062231axl:MetalFormingMembersrt:EuropeMember2018-01-012018-12-310001062231axl:CastingMembersrt:EuropeMember2018-01-012018-12-310001062231srt:EuropeMember2018-01-012018-12-310001062231axl:DrivelineMembersrt:SouthAmericaMember2018-01-012018-12-310001062231axl:MetalFormingMembersrt:SouthAmericaMember2018-01-012018-12-310001062231axl:CastingMembersrt:SouthAmericaMember2018-01-012018-12-310001062231srt:SouthAmericaMember2018-01-012018-12-310001062231us-gaap:OtherCurrentLiabilitiesMember2020-01-012020-12-310001062231us-gaap:OtherNoncurrentLiabilitiesMember2020-01-012020-12-310001062231us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-12-310001062231us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-01-012019-12-310001062231us-gaap:SellingGeneralAndAdministrativeExpensesMember2018-01-012018-12-310001062231axl:FinanceLeaseMember2020-12-310001062231axl:OperatingleaseMember2020-12-310001062231us-gaap:PropertyPlantAndEquipmentMember2020-12-310001062231us-gaap:PropertyPlantAndEquipmentMember2019-12-310001062231axl:OperatingLeaseRightOfUseAssetsMember2020-12-310001062231axl:OperatingLeaseRightOfUseAssetsMember2019-12-310001062231axl:CurrentPortionOfOperatingLeaseLiabilitiesMember2020-12-310001062231axl:CurrentPortionOfOperatingLeaseLiabilitiesMember2019-12-310001062231axl:AccruedexpensesandotherMember2020-12-310001062231axl:AccruedexpensesandotherMember2019-12-310001062231axl:LongTermPortionOfOperatingLeaseLiabilitiesMember2020-12-310001062231axl:LongTermPortionOfOperatingLeaseLiabilitiesMember2019-12-310001062231axl:PostretirementbenefitsandotherlongtermliabilitiesMember2020-12-310001062231axl:PostretirementbenefitsandotherlongtermliabilitiesMember2019-12-310001062231axl:MitecAutomotiveAGMember2019-12-020001062231axl:MitecAutomotiveAGMember2019-01-012019-12-310001062231axl:SaleOfUSCastingOperationsMember2019-01-012019-12-310001062231axl:SaleOfUSCastingOperationsMember2020-01-012020-12-310001062231axl:SaleOfPowertrainAftermarketMember2018-01-012018-12-310001062231us-gaap:AllOtherSegmentsMember2020-01-012020-12-310001062231axl:CastingMember2020-12-310001062231us-gaap:AllOtherSegmentsMember2020-12-310001062231us-gaap:AllOtherSegmentsMember2019-01-012019-12-310001062231axl:CastingMember2019-12-310001062231us-gaap:AllOtherSegmentsMember2019-12-310001062231us-gaap:AllOtherSegmentsMember2018-01-012018-12-310001062231axl:CastingMember2018-12-310001062231us-gaap:AllOtherSegmentsMember2018-12-310001062231country:US2020-01-012020-12-310001062231country:US2019-01-012019-12-310001062231country:US2018-01-012018-12-310001062231country:MX2020-01-012020-12-310001062231country:MX2019-01-012019-12-310001062231country:MX2018-01-012018-12-310001062231country:CN2020-01-012020-12-310001062231country:CN2019-01-012019-12-310001062231country:CN2018-01-012018-12-310001062231axl:AsiaexcludingChinaMember2020-01-012020-12-310001062231axl:AsiaexcludingChinaMember2019-01-012019-12-310001062231axl:AsiaexcludingChinaMember2018-01-012018-12-310001062231country:US2020-12-310001062231country:US2019-12-310001062231country:US2018-12-310001062231country:MX2020-12-310001062231country:MX2019-12-310001062231country:MX2018-12-310001062231srt:SouthAmericaMember2020-12-310001062231srt:SouthAmericaMember2019-12-310001062231srt:SouthAmericaMember2018-12-310001062231country:CN2020-12-310001062231country:CN2019-12-310001062231country:CN2018-12-310001062231axl:AsiaexcludingChinaMember2020-12-310001062231axl:AsiaexcludingChinaMember2019-12-310001062231axl:AsiaexcludingChinaMember2018-12-310001062231srt:EuropeMember2020-12-310001062231srt:EuropeMember2019-12-310001062231srt:EuropeMember2018-12-3100010622312020-01-012020-03-3100010622312020-07-012020-09-3000010622312020-10-012020-12-3100010622312019-01-012019-03-3100010622312019-04-012019-06-3000010622312019-07-012019-09-3000010622312019-10-012019-12-310001062231axl:DrivelineAndMetalFormingMember2020-01-012020-03-310001062231axl:MetalFormingMember2019-10-012019-12-310001062231us-gaap:AllowanceForCreditLossMember2017-12-310001062231us-gaap:AllowanceForCreditLossMember2018-01-012018-12-310001062231us-gaap:AllowanceForCreditLossMember2018-12-310001062231us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2017-12-310001062231us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2018-01-012018-12-310001062231us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2018-12-310001062231us-gaap:InventoryValuationReserveMember2017-12-310001062231us-gaap:InventoryValuationReserveMember2018-01-012018-12-310001062231us-gaap:InventoryValuationReserveMember2018-12-310001062231us-gaap:AllowanceForCreditLossMember2019-01-012019-12-310001062231us-gaap:AllowanceForCreditLossMember2019-12-310001062231us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2019-01-012019-12-310001062231us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2019-12-310001062231us-gaap:InventoryValuationReserveMember2019-01-012019-12-310001062231us-gaap:InventoryValuationReserveMember2019-12-310001062231us-gaap:AllowanceForCreditLossMember2020-01-012020-12-310001062231us-gaap:AllowanceForCreditLossMember2020-12-310001062231us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2020-01-012020-12-310001062231us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2020-12-310001062231us-gaap:InventoryValuationReserveMember2020-01-012020-12-310001062231us-gaap:InventoryValuationReserveMember2020-12-31
                                             
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2020

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)



Delaware38-3161171
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)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)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, Par Value $0.01 Per ShareAXLNew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No

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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

The closing price of the Common Stock on June 30, 2020 as reported on the New York Stock Exchange was $7.60 per share and the aggregate market value of the registrant's Common Stock held by non-affiliates was approximately $850.4 million. As of February 9, 2021, the number of shares of the registrant's Common Stock, $0.01 par value, outstanding was 113,295,610 shares.

Documents Incorporated by Reference
Portions of the registrant's Annual Report to Stockholders for the year ended December 31, 2020 and Proxy Statement for use in connection with its Annual Meeting of Stockholders to be held on May 6, 2021, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after December 31, 2020, are incorporated by reference in Part I (Items 1, 1A, 1B, 2, 3 and 4), Part II (Items 5, 6, 7, 7A, 8, 9, 9A and 9B), Part III (Items 10, 11, 12, 13 and 14) and Part IV (Item 15) of this Report.



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
TABLE OF CONTENTS - ANNUAL REPORT ON FORM 10-K 
Year Ended December 31, 2020
   Page Number
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
 
   

1



Part I

Item 1.Business

As used in this report, except as otherwise indicated in information incorporated by reference, references to “our Company,” "we," "our," "us" or “AAM” mean American Axle & Manufacturing Holdings, Inc. (Holdings) and its subsidiaries and predecessors, collectively.

General Development of Business

Holdings, a Delaware corporation, is a successor to American Axle & Manufacturing of Michigan, Inc., a Michigan corporation, pursuant to a migratory merger between these entities in 1999.

In 2017, Alpha SPV I, Inc., a wholly-owned subsidiary of Holdings, merged with and into Metaldyne Performance Group, Inc. (MPG), with MPG as the surviving corporation in the merger. Upon completion of the merger, MPG became a wholly-owned subsidiary of Holdings.

Narrative Description of Business

Company Overview

We are a global Tier 1 supplier to the automotive industry. We design, engineer and manufacture driveline and metal forming products that are making the next generation of vehicles smarter, lighter, safer and more efficient. We employ approximately 20,000 associates, operating at nearly 80 facilities in 17 countries, to support our customers on global and regional platforms with a focus on operational excellence, quality and technology leadership.

Major Customers
We are a primary supplier of driveline components to General Motors Company (GM) for its full-size rear-wheel drive (RWD) light trucks, sport utility vehicles (SUV), and crossover vehicles manufactured in North America, supplying a significant portion of GM's rear axle and four-wheel drive and all-wheel drive (4WD/AWD) axle requirements for these vehicle platforms. We also supply GM with various products from our Metal Forming segment. Sales to GM were approximately 39% of our consolidated net sales in 2020, 37% in 2019, and 41% in 2018.

We also supply driveline system products to FCA US LLC (FCA, now part of Stellantis N.V. effective January 2021) for programs including the heavy-duty Ram full-size pickup trucks and its derivatives, the AWD Chrysler Pacifica and the AWD Jeep Cherokee. In addition, we sell various products to FCA from our Metal Forming segment. Sales to FCA were approximately 19% of our consolidated net sales in 2020, 17% in 2019 and 13% in 2018.

We are also a supplier to Ford Motor Company (Ford) for driveline system products on certain vehicle programs including the Ford Edge, Ford Escape, Lincoln Nautilus, and we sell various products to Ford from our Metal Forming segment. Sales to Ford were approximately 12% of our consolidated net sales in 2020, 9% in of 2019 and 8% in 2018.


2


Business Strategy

We have aligned our business strategy to build value for our key stakeholders. We accomplish our strategic objectives by capitalizing on our competitive strengths and continuing to diversify our customer, product and geographic sales mix, while providing exceptional value to our customers.

Competitive Strengths

We achieve our strategic objectives by emphasizing a commitment to:

Sustaining our operational excellence and focus on cost management.

AAM received the 2019 GM Supplier of the Year Award, which is awarded to suppliers that consistently exceed GM's expectations, create outstanding value or bring new innovations to GM. This was the fourth consecutive year we received this award.

AAM was named a 2020 finalist for FCA's North America Supplier of the Year Award for Sustainability, which recognizes companies that have shown an exceptional commitment to FCA by providing innovative and high-quality products and services.

We continue to deliver operational excellence by leveraging our global standards, policies and best practices across all disciplines through the use of the AAM Operating System. We use this system to focus on customer satisfaction, lean production and efficient cost management, which allows us to improve quality, eliminate waste, and reduce lead time and total costs globally. Additionally, we have continued our emphasis on cost management in order to mitigate the financial impact of the reduction in global automotive production volumes during 2020 as a result of COVID-19.

We have established a cost competitive, operationally flexible global manufacturing, engineering and sourcing footprint to increase our presence in global growth markets, support global product development initiatives and establish regional cost competitiveness.

Our business is vertically integrated to reduce cost and mitigate risk. Our Metal Forming segment, in addition to supplying component parts to many external customers, is a key supplier to our Driveline segment, ensuring continuity of supply for certain parts to our largest manufacturing facilities.

During 2020, we launched 17 programs across our business units, supporting a variety of customers including GM, FCA and Daimler AG. In 2021, we expect to launch approximately 10 new and replacement programs across our business units.

Maintaining our high quality standards, which are the foundation of our product durability and reliability.

AAM has a robust internal quality assurance system that drives continuous improvement to meet and exceed the growing expectations of our original equipment manufacturer (OEM) customers.

In 2020, eight of our global facilities received the GM Supplier Quality Excellence Award for outstanding quality performance during the 2019 performance year. For our Changshu Manufacturing Facility in China, it was the sixth consecutive year that they earned this award.

AAM was recognized in 2020 by Ford for several awards for the 2019 performance year, including the Silver World Excellence Award for quality at our Valencia, Spain facility which recognizes top-performing suppliers for their contributions to Ford's success, the Zero Defects Award at our Barcelona, Spain facility and the Outstanding Support and Supplier Quality Award at our North Vernon, Indiana facility.

Our Pyeongtaek, South Korea facility was awarded the Hyundai Supplier of the Year Award for safety management, which recognizes facilities that meet or exceed Hyundai's environmental, health and safety standards.

3



Achieving technology leadership by delivering innovative products which improve the diversification of our product portfolio while increasing our total global served market.

AAM's significant investment in research and development (R&D) has resulted in the development of advanced technology products designed to assist our customers in meeting the market demands for advanced, sophisticated electronic controls; improved fuel efficiency; lower emissions; enhanced power density; improved safety, ride and handling performance; and enhanced reliability and durability.

AAM's all-new Electric Drive (eDrive) Technology is designed, engineered and manufactured to provide a diverse and scalable product portfolio of hybrid and electric driveline systems to our customers that range from low-cost value-oriented offerings to high-performance solutions. These hybrid and electric driveline systems leverage AAM's experience in power density, torque transfer, noise-vibration-harshness reduction, heat management and systems integration, and are designed to improve fuel efficiency, reduce CO2 emissions and provide AWD capability. Further, we recently entered into a technology development agreement with Suzhou Inovance Automotive Ltd., a leading provider of automotive power electronics and powertrain systems in China, to accelerate the development and delivery of scalable, next-generation 3-in-1 electric drive systems, which integrate an inverter, electric motor and gearbox.

To date, our hybrid and electric driveline systems have been awarded multiple contracts, including the front and rear electric drive units featured on the Jaguar I-PACE AWD crossover vehicle. For our content on the Jaguar I-PACE, AAM was awarded a 2020 Innovation Award and a 2020 Partnership Award by the Automotive News PACE Awards, which recognizes automotive suppliers for superior innovation, technological advancement and business performance. These awards are widely regarded as an industry benchmark for innovation.

We expect to launch several additional programs for hybrid and electric vehicles, including multiple variants of a high-performance hybrid system with a premium European OEM, as well as an electric commercial vehicle with a new customer, and component parts for an electric pick-up truck.

AAM's EcoTrac® Disconnecting AWD system (EcoTrac® ) is a fuel-efficient driveline system that provides OEMs the option of an all-wheel-drive system that disconnects when not needed to improve fuel efficiency and reduce CO2 emissions compared to conventional AWD systems. AAM's EcoTrac® is featured on several global crossover platforms, including platforms with GM, FCA and Ford.

AAM has established a high-efficiency product portfolio that is designed to improve axle efficiency and fuel economy through innovative product design technologies. As our customers focus on reducing weight through the use of aluminum and other lightweighting alternatives, AAM is well positioned to offer innovative, industry leading solutions. Our portfolio includes high-efficiency axles, aluminum axles and AWD applications. AAM's QuantumTM lightweight axle technology features a revolutionary design, which offers significant mass reduction and increased fuel economy and efficiency that is scalable across multiple applications without the loss of performance or power.

Our Metal Forming segment provides engine, transmission, driveline and safety-critical components for light, commercial and industrial vehicles. We have developed advanced forging and machining process technologies to manufacture lightweight and power-dense products. Our forged axle tubes deliver significant weight and cost reductions as compared to the traditional welded axle tubes.

AAM's Advanced Technology Development Center (ATDC) at our Detroit campus, allows us to accelerate technological advancements. This state-of-the-art facility is our center for technology benchmarking, prototype development, advanced technology development, supplier collaboration, customer showcasing and associate training on our future products, processes, and systems. Our Rochester Hills Technical Center (RHTC) works with the ATDC to test and validate new and advanced technologies focused on lightweighting, efficiency and vehicle performance using enhanced diagnostic and hardware assessment capabilities.


4


Diversification of Customer, Product and Geographic Sales Mix

Another element of building value for our key stakeholders is the diversification of our business through the growth of new and existing customer relationships and expansion of our product portfolio.

In addition to maintaining and building upon our longstanding relationships with GM, FCA and Ford we are focused on generating profitable growth with new and existing global customers. New business launches in 2020 included key customers such as Daimler AG and Ashok Leyland Ltd.

Electrification is a growing portion of our new and incremental business backlog, as well as our quoted and emerging new business opportunities, and is a significant element of our future growth strategy.

We continue to evaluate and consider strategic opportunities that will complement our core strengths and supplement our diversification strategies while providing future, profitable growth prospects.

We are focused on increasing our presence in global markets to support our customers' platforms.

As our customers design their products for global markets, they will continue to require global support from their suppliers. For this reason, it is critical that we maintain a global presence in these markets in order to remain competitive for new contracts. In an effort to expand our global capabilities, we are constructing a new European headquarters and engineering center in Langen, Germany, which is expected to be completed in 2021. This new facility will become AAM's European center for excellence for research and development, product testing and prototype development, and is a critical step in furthering our relationships with European OEM customers.

We are a partner in a joint venture (JV) with Liuzhou Wuling Automobile Industry Co., Ltd. (Liuzhou AAM), a subsidiary of Guangxi Automotive Group Co., Ltd, which manufactures independent rear axles and driveheads to be used on crossovers, including SUVs, minivans and multi-purpose vehicles. We launched a value-oriented eDrive system serving FWD passenger cars at our Liuzhou AAM JV in 2020. We are also a partner in a JV with Hefei Automobile Axle Co., Ltd. (HAAC), a subsidiary of the JAC Group (Anhui Jianghuai Automotive Group Co., Ltd.), which includes 100% of HAAC's light commercial axle business. HAAC supplies front and rear beam axles to several leading Chinese light truck manufacturers, including JAC and Foton (Beiqi Foton Motor Co., Ltd.). These joint ventures continue to serve as a strong advantage in building relationships with leading Chinese manufacturers.

Competition
 
We compete with a variety of independent suppliers and distributors, as well as with the in-house operations of certain vertically integrated OEMs. Technology, design, quality and cost are the primary elements of competition in our industry segments. In addition to traditional competitors in the automotive sector, the trend toward electrification and advanced electronic integration has increased the level of new market entrants. Further, some traditional automotive industry participants are developing strategic partnerships with technology companies as each party seeks to leverage the existing customer relationships and technical knowledge of the partner, and expedite the development and commercialization of new technology.

Industry Trends

See Item 7, “Management's Discussion and Analysis - Industry Trends.”
    
Productive Materials

We believe that we have adequate sources of supply of productive materials and components for our manufacturing needs, including steel, other metallic materials, and resources used for vehicle electrification and electronic integration.  Most raw materials (such as steel) and semi-processed or finished items are available within the geographical regions of our operating facilities from qualified sources in quantities sufficient for our needs.  We currently have contracts with our steel suppliers that ensure continuity of supply to our principal operating facilities.  We also have validation and testing capabilities that enable us to strategically qualify steel sources on a global basis. As we continue to expand our global manufacturing footprint, we may need to rely on suppliers in local markets that have not yet proven their ability to meet our requirements. 
5



Patents and Trademarks

We maintain and have pending various United States (U.S.) and foreign patents, trademarks and other rights to intellectual property relating to our business, which we believe are appropriate to protect our interest in existing products, new inventions, manufacturing processes and product developments. We do not believe that any single patent or trademark is material to our business, nor would expiration or invalidity of any patent or trademark have a material adverse effect on our business or our ability to compete.

Cyclicality and Seasonality

Our operations are cyclical because they are directly related to worldwide automotive production, which is itself cyclical and dependent on general economic conditions and other factors. Typically, our business is moderately seasonal as our major OEM customers historically have an extended shutdown of operations (typically 1-2 weeks) in conjunction with their model year changeover and an approximate one-week shutdown in December. Our major OEM customers also occasionally have longer shutdowns of operations (up to 6 weeks) for program changeovers. Accordingly, our quarterly results may reflect these trends.

Litigation and Environmental Matters

We are involved in, or potentially subject to, various legal proceedings or claims incidental to our business. These include, but are not limited to, matters arising out of product warranties, tax or contractual matters, and environmental obligations. Although the outcome of these matters cannot be predicted with certainty, we do not believe that any of these matters, individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations or cash flows.

We are subject to various federal, state, local and foreign environmental and occupational safety and health laws, regulations and ordinances, including those regulating air emissions, water discharge, waste management and environmental cleanup. We will continue to closely monitor our environmental conditions to ensure that we are in compliance with all laws, regulations and ordinances. We have made, and anticipate continuing to make, capital and other expenditures (including recurring administrative costs) to comply with environmental requirements at our current and former facilities. Such expenditures were not significant in 2020, 2019 and 2018.

Human Capital Management

Attract, Develop, Engage and Retain Diverse Talent

Empowerment of our associates is essential to continuously improving our quality performance, technology leadership and operational excellence. We are focused on recruiting, developing and retaining high-performing talent globally. We provide our associates with the tools to develop technically and grow professionally, wherever they are in the world, into the leaders that will guide AAM into the future.

We employ approximately 20,000 associates on a global basis (including our joint venture affiliates) of which approximately 6,300 are employed in the U.S. and approximately 13,700 are employed at our foreign locations. Approximately 4,400 are salaried associates and approximately 15,600 are hourly associates. Of the approximately 15,600 hourly associates, approximately 72% are covered under collective bargaining agreements with various labor unions.

At AAM, we believe diversity drives creativity. We believe an equitable and inclusive culture encourages, supports and celebrates the unique voices of our global workforce. AAM is committed to listening, learning, and taking action that will move our company and our communities forward, together. Our cultural values of integrity, teamwork, responsibility, excellence, lean and empowerment guide our global workforce and define how we interact with each other, our communities and the environment.


6


Associate Health, Wellness, Safety and Development

AAM360 is our comprehensive health, wellness, safety and development program designed to provide a complete associate experience. AAM360 integrates competitive compensation and benefits, ongoing professional development and training, and associate appreciation and wellness programs, as well as community involvement initiatives. Our management utilizes AAM360 to develop and implement standards for recruitment and selection of a knowledgeable and diverse workforce, effective on-boarding, promoting learning and growth, driving effective performance and fostering an environment of open communication with AAM’s leadership.

Through our AAM360 program, AAM management monitors workforce demographics and attrition, associate performance data, succession and development plans and feedback from associates to ensure that our associates’ experience is meeting these objectives. Our associates also have the opportunity to interact with AAM’s leaders in a variety of formats, including townhall-style meetings, and can also raise issues and concerns to the attention of management through the use of associate surveys and our 24/7 ethics hotline.

AAM Response to Novel Coronavirus (COVID-19)

In response to COVID-19, we instituted several operational measures to ensure the health, safety and wellness of our associates, which included the following:

Assembled a COVID-19 Task Force comprised of AAM's senior leadership working closely with associates across several functions and regions to coordinate decision making and communication related to actions taken by AAM to mitigate the impact of COVID-19, and to ensure that AAM is compliant with all region-specific regulations or requirements associated with COVID-19;
Temporarily suspended or reduced production at manufacturing facilities and directed associates who could do so to work remotely;
Initiated thorough cleaning and decontamination procedures at our facilities in preparation for resuming operations; and
Designed additional safety measures to further protect associates as production was restored and our associates resumed working in certain of our global facilities.

S4 (S-to-the-Fourth) Safety System

At AAM, a primary responsibility is the safety of our approximately 20,000 global associates. AAM’s S4 safety system is focused on developing, engaging, monitoring, and continuously educating our associates on standardized procedures that are the basis of our safety culture and safety policy.

The primary goal of S4 is to achieve compliance with all internal and external requirements and regulations while driving behavioral changes to maintain a safe and environmentally friendly workplace. At AAM, we believe safety performance is a journey where each facility strives to achieve S4 by moving from a reactive safety environment to an interdependent safety environment.

We are focused on continuous improvement of the S4 system and in our total recordable incident rate (TRIR) in every facility. AAM’s leaders continuously monitor our facilities progress in the S4 Safety System. In 2020, our TRIR was 0.9 – a reduction of approximately 57% in recordable injuries since the S4 program began in 2015.

Partnering with our Global Communities

AAM believes that we have a responsibility to give back to the communities in which we live and work. AAM has long-standing relationships with charitable organizations to support local families, youth outreach, education, wellness, and social equality. We support global organizations with both donations and volunteer hours, and AAM associates across the globe regularly participate in charitable and community events that allow our team to contribute to causes important to them.
7


Executive Officers of the Registrant
    
NameAgePosition
David C. Dauch56Chairman of the Board & Chief Executive Officer
Michael K. Simonte57President
David E. Barnes62Vice President & General Counsel
Gregory S. Deveson59President - Driveline
Terri M. Kemp55Vice President - Human Resources
Michael J. Lynch56Vice President - Finance & Controller
Christopher J. May51Vice President & Chief Financial Officer
Norman Willemse64President - Metal Forming

David C. Dauch, age 56, has been AAM's Chief Executive Officer since September 2012. Mr. Dauch has served on AAM's Board of Directors since April 2009 and was appointed Chairman of the Board in August 2013. From September 2012 through August 2015, Mr. Dauch served as AAM’s President & CEO. Prior to that, Mr. Dauch served as President & Chief Operating Officer (2008 - 2012) and held several other positions of increasing responsibility from the time he joined AAM in 1995. Presently, he serves on the boards of Business Leaders for Michigan, the Detroit Economic Club, the Detroit Regional Chamber, the Great Lakes Council Boy Scouts of America, the Boys & Girls Club of Southeast Michigan, the National Association of Manufacturers (NAM), the Original Equipment Suppliers Association (OESA), Amerisure Mutual Holdings, Inc. and the Amerisure Companies (since December 2014). Mr. Dauch also serves on the Miami University Business Advisory Council, the General Motors Supplier Council and the FCA NAFTA Supplier Advisory Council.

Michael K. Simonte, age 57, has been President since August 2015. Mr. Simonte previously served as Executive Vice President & Chief Financial Officer (since February 2009); Group Vice President - Finance & Chief Financial Officer (since December 2007); Vice President - Finance & Chief Financial Officer (since January 2006); Vice President & Treasurer (since May 2004); and Treasurer (since September 2002). Mr. Simonte joined AAM in December 1998 as Director, Corporate Finance. Prior to joining AAM, Mr. Simonte served as Senior Manager at the Detroit office of Ernst & Young LLP. Mr. Simonte is a certified public accountant.

David E. Barnes, age 62, has been General Counsel and Corporate Secretary since joining AAM in 2012, and became a Vice President in 2017. In addition to his responsibilities as General Counsel and Corporate Secretary, he also serves as the Chief Compliance Officer of AAM. Prior to joining AAM, Mr. Barnes served as Executive Vice President, General Counsel and Secretary for Atlas Oil Company. He has held various positions during his career at Ford Motor Company, Dykema Gossett and Venture Holdings LLC, after beginning his career at Honigman, Miller, Schwartz and Cohn. Mr. Barnes holds a juris doctor degree.

Gregory S. Deveson, age 59, has been President - Driveline since January 2019. Prior to that, he served as President - Powertrain since joining AAM in April 2017. Prior to joining AAM, Mr. Deveson served as Senior Vice President of the Driveline Systems Group at Magna Powertrain from 2008 to 2016. Over his 25-year automotive and manufacturing career, Mr. Deveson has managed business operations, strategic opportunities, product engineering, purchasing and quality for multiple organizations.

Terri M. Kemp, age 55, has been Vice President - Human Resources since September 2012. Prior to that, she served as Executive Director - Human Resources & Labor Relations (since November 2010), Executive Director - Human Resources (since September 2009), Director - Human Resources Operations (since October 2008), and served in various plant and program management roles since joining AAM in July 1996. Prior to joining AAM, Mrs. Kemp served for nine years at Corning Incorporated, where she progressed through a series of manufacturing positions with increasing responsibility, including Industrial Engineer, Department Head and Operations Manager.


8


Michael J. Lynch, age 56, has been Vice President - Finance & Controller since February 2017. Prior to that, he served as Vice President - Driveline Business Performance & Cost Management (since May 2015); Vice President - Finance & Controller (since September 2012); Executive Director & Controller (since October 2008); Director - Commercial Analysis (since July 2006); Director - Finance, Driveline Americas (since March 2006); Director - Investment & Commercial Analysis (since November 2005); Director - Finance, Driveline (since October 2005); Director - Finance Operations, U.S. (since April 2005); Manager - Finance (since June 2003); Manager - Finance, Forging Division (since September 2001); Finance Manager - Albion Automotive (since October 1998); Supervisor - Cost Estimating (since February 1998) and Financial Analyst at the Detroit Manufacturing Facility since joining AAM in September 1996. Prior to joining AAM, Mr. Lynch served at Stellar Engineering for nine years in various capacities.

Christopher J. May, age 51, has been Vice President & Chief Financial Officer since August 2015. Prior to that, he served as Treasurer (since December 2011); Assistant Treasurer (since September 2008); Director of Internal Audit (since September 2005); Divisional Finance Manager - Metal Formed Products (since June 2003); Finance Manager - Three Rivers Manufacturing Facility (since August 2000); Manager, Financial Reporting (since November 1998) and Financial Analyst since joining AAM in 1994. Prior to joining AAM, Mr. May served as a Senior Accountant for Ernst & Young. Mr. May is a certified public accountant.

Norman Willemse, age 64, has been President - Metal Forming since August 2015. Prior to that, he served as Vice President - Metal Formed Product Business Unit (since December 2011); Vice President - Global Metal Formed Product Business Unit (since October 2008); Vice President - Global Metal Formed Product Operations (since December 2007); General Manager - Metal Formed Products Division (since July 2006) and Managing Director - Albion Automotive (since joining AAM in August 2001). Prior to joining AAM, Mr. Willemse served at AS Transmissions & Steering (ASTAS) for seven years as Executive Director Engineering Group Manager Projects and Engineering and John Deere for over 17 years in various engineering positions of increasing responsibility. Mr. Willemse is a professional certified mechanical engineer.

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(a) or 15(d) of the Securities Exchange Act of 1934 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. The information contained in the Company's website is not included, or incorporated by reference, in this Annual Report on Form 10-K.


9


Item 1A.Risk Factors

The following risk factors and other information included in this Annual Report on Form 10-K should be considered as our business, financial condition, operating results and cash flows could be materially adversely affected if any of the following risks occur.

Risks Related to Our Operations

Our business and financial condition have been, and may continue to be, adversely affected by the impact of COVID-19.

Our business and financial condition have been, and may continue to be, adversely affected by the impact of COVID-19. During the year ended December 31, 2020, COVID-19 has disrupted global economic markets and has led to significant reductions in global automotive production volumes. As a result of COVID-19, governmental and public health officials in substantially all of the locations in which we operate had mandated certain precautions to mitigate the spread of the disease, including shelter-in-place orders or similar measures. As such, we temporarily suspended production, or experienced a significant reduction in production volumes, in substantially all of our manufacturing facilities at various times during 2020.

The ultimate extent of the impact of COVID-19 will depend on future developments, such as the duration and extent of the pandemic, the imposition or reimposition of shelter-in-place or similar measures and its impact on: consumers and sales of the vehicles we support, our customers and our and their suppliers, how quickly economic conditions and our and our customers’ operations can return to more normalized levels, and sustain such levels, and whether the pandemic leads to recessionary conditions and the duration of any such recession. In addition, government sponsored economic stimulus programs in response to the pandemic may not be available to our customers, our suppliers or us, or be expanded, renewed or otherwise sufficient to achieve their economic goals. Our supply chain also may be disrupted due to supplier closures or bankruptcies. Our operations may also be impacted by interruptions due to the direct impact of, or precautionary measures associated with, COVID-19 at our locations or those of our customers or suppliers.

Further, COVID-19 could exacerbate certain other risk factors below including, but not limited to, dependency on certain customers, dependency on certain global automotive market segments, risks and uncertainties associated with our company’s global operations, dependency on certain key manufacturing facilities, cyclicality in the automotive industry, disruptions in our supply chain and our customers’ supply chain, our liquidity and compliance with debt covenants.

Our business is significantly dependent on sales to GM, FCA and Ford.

Sales to GM were approximately 39% of our consolidated net sales in 2020, 37% in 2019, and 41% in 2018. A reduction in our sales to GM, or a reduction by GM of its production of light truck, SUV or crossover vehicle programs that we support, as a result of market share losses of GM or otherwise, could have a material adverse effect on our results of operations and financial condition.

Sales to FCA accounted for approximately 19% of our consolidated net sales in 2020, 17% in 2019 and 13% in 2018, and sales to Ford accounted for approximately 12% of our consolidated net sales in 2020, 9% in of 2019 and 8% in 2018. A reduction in our sales to either FCA or Ford or a reduction by FCA or Ford of their production of the programs we support, as a result of market share losses or otherwise, could have a material adverse effect on our results of operations and financial condition.

Our business may also be adversely affected by reduced demand for the product programs we currently support, or anticipate supporting in the future, or if we do not obtain sales orders for successor programs that replace our current product programs.


10


Our business is dependent on our Guanajuato Manufacturing Complex.

A high concentration of our global business is supported by our Guanajuato Manufacturing Complex (GMC) in Mexico. GMC represents a significant portion of our net sales, profitability and cash flow from operations and we expect GMC to continue to represent a substantial portion of these metrics for the foreseeable future. A significant disruption to our GMC operations, as a result of changes in trade agreements between Mexico and the U.S., tariffs, tax law changes, labor disputes, natural disasters, availability of natural resources or utilities, or otherwise, could have a material adverse impact on our results of operations and financial condition.

A failure of our information technology (IT) networks and systems, or the impact of a cyber attack, could adversely impact our business and operations.

We rely upon information technology networks and systems to process, transmit and store electronic information, and to manage or support a variety of critical business processes or activities. Additionally, we and certain of our third-party vendors collect and store personal or confidential information in connection with human resources operations and other aspects of our business. The secure operation of these information technology networks and systems and the proper processing and maintenance of this information are critical to our business operations. We cannot be certain that the security measures we have in place to protect these systems and data will be successful or sufficient to protect our IT systems from current and emerging technology threats and damage from computer viruses, unauthorized access, cyber attack and other similar disruptions. The occurrence of any of these events could compromise our networks, and the information stored there could be accessed, publicly disclosed or lost. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy of personal information, the disruption of our operations or damage to our reputation. We may be required to incur significant costs to protect against damage caused by these disruptions or security breaches in the future.

Our business could be adversely affected by disruptions in our supply chain and our customers' supply chain.

We depend on a limited number of suppliers for certain key components and materials needed for our products. We rely upon, and expect to continue to rely upon, certain suppliers for critical components and materials that are not readily available in sufficient volume from other sources. As we continue to expand our global manufacturing footprint, we may need to rely on suppliers in local markets that have not yet proven their ability to meet our requirements. These supply chain characteristics make us susceptible to supply shortages and price increases. If production volumes increase rapidly, there can be no assurance that the suppliers of critical components and materials will be able or willing to meet our future needs on a timely basis.

Our supply chain, as well as our customers' supply chain, is also at risk of unanticipated events such as pandemic or epidemic illness, natural disasters, industrial incidents, changes in governmental regulations and trade agreements, or financial or operational instability of suppliers that could cause a disruption in the supply of critical components to us and our customers. For example, the automotive industry is experiencing a shortage of semiconductor supply that has impacted, and could continue to impact, production volumes for certain customers, which could adversely impact our production volumes. A significant disruption in the supply of components or materials could have a material adverse effect on our results of operations and financial condition.

We may incur material losses and costs as a result of product recall or field action, product liability and warranty claims, litigation and other disputes and claims.

We are exposed to warranty, product recall or field action and product liability claims in the event that our products fail to perform as expected, and we may be required to participate in a recall of such products. We are not responsible for certain warranty claims that may be incurred by our customers, which include returned components for which no defect was found upon inspection, discretionary acts of dealer goodwill, defects related to certain directed buy components, and build-to-print design issues. We review warranty claim activity in detail, and we may have disagreements with our customers as to responsibility for these types of costs incurred by our customers. In addition, as we continue to diversify our customer base, we expect our obligation to share in the cost of providing warranties as part of our agreements with new customers will increase. Costs and expenses associated with warranties, field actions, product recalls and product liability claims could have a material adverse impact on our results of operations and financial condition and may differ materially from the estimated liabilities that we have recorded in our consolidated financial statements.
11



In addition to warranty claims relating directly to products we produce, potential product recalls for our customers and their other suppliers, and the potential reputational harm that may result from such product recalls, could have a material adverse impact on our results of operations and financial condition.

We are also involved in various legal proceedings incidental to our business. Although we believe that none of these matters are likely to have a material adverse effect on our results of operations or financial condition, there can be no assurance as to the ultimate outcome of any such legal proceeding or any future legal proceedings.

Our business could be adversely affected if we, our customers, or our suppliers fail to maintain satisfactory labor relations.

A significant portion of our hourly associates worldwide, as well as the workforces of our customers and suppliers, are members of industrial trade unions employed under the terms of collective bargaining agreements. There can be no assurance that future negotiations with labor unions will be resolved favorably or that we, our customers or suppliers will not experience a work stoppage or disruption that could have a material adverse impact on our results of operations and financial condition. In addition, there can be no assurance that such future negotiations will not result in labor cost increases or other terms and conditions that could adversely affect our results of operations and financial condition or our ability to compete for future business.

Our goodwill, other intangible assets, and long-lived assets are at risk of impairment if our business or market conditions indicate that the carrying value of those assets exceeds their fair value.

Accounting principles generally accepted in the United States of America (GAAP) require that companies evaluate the carrying value of goodwill, other intangible assets, and long-lived assets routinely in order to assess whether any indication of asset impairment exists. Goodwill is required to be evaluated on an annual basis, while finite-lived intangible assets and long-lived assets should be evaluated only when events and circumstances exist that indicate an asset or group of assets may be impaired.

We conduct our annual goodwill impairment test in the fourth quarter using a third-party valuation specialist to assist management in determining the fair value of our reporting units. Fair value of each reporting unit is estimated based on a combination of discounted cash flows and the use of pricing multiples derived from an analysis of comparable public companies multiplied against historical and/or anticipated financial metrics of each reporting unit. These calculations contain uncertainties as they require management to make assumptions including, but not limited to, market comparables, future cash flows of the reporting units, and appropriate discount and long-term growth rates. A decline in the actual cash flows of our reporting units in future periods, as compared to the projected cash flows used in our valuations, could result in the carrying value of the reporting units exceeding their respective fair values. Further, a change in market comparables, discount rate or long-term growth rate, as a result of a change in economic conditions or otherwise, could result in the carrying values of the reporting units exceeding their respective fair values.

Our company or our customers may not be able to successfully and efficiently manage the timing and costs of new product program launches.

Certain of our customers are preparing to launch new product programs for which we will supply newly developed products and related components.  There can be no assurance that we will successfully complete the transition of our manufacturing facilities and resources to support these new product programs or other future product programs on a timely and cost efficient basis.  Accordingly, the launch of new product programs may adversely affect production rates or other operational efficiency and profitability measures at our facilities.  We may also experience difficulties with the performance of our supply chain on program launches, which could result in our inability to meet our contractual obligations to key customers. Production shortfalls or production delays, if any, could result in our failure to effectively manage our manufacturing costs relating to these program launches. In addition, our customers may delay the launch or fail to successfully execute the launch of these new product programs, or any additional future product program for which we will supply products. Our revenues, operating results and financial condition could be adversely impacted if our customers fail to timely launch such programs or if we are unable to manage the timing requirements and costs of new product program launches.


12


Our company may not realize all of the revenue expected from our new and incremental business backlog.

The realization of incremental revenues from awarded business is inherently subject to a number of risks and uncertainties, including the accuracy of customer estimates relating to the number of vehicles to be produced in new and existing product programs and the timing of such production, as well as the fluctuation in exchange rates for programs sourced in currencies other than our reporting currency. It is also possible that our customers may delay or cancel a product program that has been awarded to us. Our revenues, operating results and financial condition could be adversely affected relative to our current financial plans if we do not realize substantially all the revenue from our new and incremental business backlog.

Our business could be adversely affected by volatility in the price or availability of raw materials, utilities and natural resources.

We may experience volatility in the cost or availability of raw materials used in production, including steel and other metallic materials, and resources used in electronic components, or in the cost or availability of utilities and natural resources used in our operations, such as electricity, water and natural gas. If we are unable to pass such cost increases on to our customers, or are otherwise unable to mitigate these cost increases, or if we are unable to obtain adequate supply of raw materials, utilities and natural resources, this could have a material adverse effect on our results of operations and financial condition.

We use important intellectual property in our business. If we are unable to protect our intellectual property, or if a third party makes assertions against us or our customers relating to intellectual property rights, our business could be adversely affected.

We own important intellectual property, including patents, trademarks, copyrights and trade secrets. Our intellectual property plays an important role in maintaining our competitive position in a number of the markets that we serve. Our competitors may develop technologies that are similar to our proprietary technologies or design around the patents we own or license. Further, as we expand our operations in jurisdictions where the protection of intellectual property rights is less robust, the risk of others duplicating our proprietary technologies increases, despite efforts we undertake to protect them. Developments or assertions by or against us relating to intellectual property rights, and any inability to protect these rights, could materially adversely affect our business and our competitive position.

Our company's ability to operate effectively could be impaired if we lose key personnel.

Our success depends, in part, on the efforts of our executive officers and other key associates, such as engineers and global operational leadership. In addition, our future success will depend on, among other factors, our ability to continue to attract and retain qualified personnel, particularly engineers and other associates with critical expertise and skills that support key customers and products. The loss of the services of our executive officers or other key associates, unexpected turnover, or the failure to attract or retain associates, could have a material adverse effect on our results of operations and financial condition.

Risks Related to Our Industry

We are under continuing pressure from our customers to reduce our prices.

Annual price reductions are a common practice in the automotive industry. Many of our contracts require us to reduce our prices in subsequent years and most of our contracts allow us to adjust prices for engineering changes requested by our customers. If we accommodate a customer's demand for higher annual price reductions and are unable to offset the impact of any such price reductions through continued technology improvements, cost reductions or other productivity initiatives, our results of operations and financial condition could be adversely affected.
13


Our business faces substantial competition.

The markets in which we compete are highly competitive. Our competitors include manufacturing facilities controlled by OEMs, as well as many other domestic and foreign companies possessing the capability to produce some or all of the products we supply. In addition to traditional competitors in the automotive sector, the trend towards advanced electronic integration and electrification has increased the level of new market entrants, including technology companies. Some of our competitors are affiliated with OEMs and others could have economic advantages as compared to our business, such as patents, existing underutilized capacity and lower wage and benefit costs. Technology, design, quality, delivery and cost are the primary elements of competition in our markets. As a result of these competitive pressures and other industry trends, OEMs and suppliers are developing strategies to reduce costs. These strategies include supply base consolidation, OEM in-sourcing and global sourcing. Further, some traditional automotive industry participants are developing strategic partnerships with technology companies as each party seeks to leverage the existing customer relationships and technical knowledge of the partner, and expedite the development and commercialization of new technology. Our business may be adversely affected by increased competition from suppliers benefiting from OEM affiliate relationships or financial and other resources that we do not possess. Our business may also be adversely affected if we do not sustain our ability to meet customer requirements relative to technology, design, quality, delivery and cost.

If we are unable to respond timely to changes in technology and market innovation, we risk not being able to develop our intellectual property into commercially viable products.

Our results of operations and financial condition are impacted, in part, by our competitive advantage in developing, engineering, and manufacturing innovative products. Our ability to anticipate changes in technology, successfully develop, engineer, and bring to market new and innovative proprietary products, or successfully respond to evolving business models, including electric vehicle advances, may have a significant impact on our market competitiveness. If we are unable to maintain our competitive advantage through innovation, or if we do not sustain our ability to meet customer requirements relative to technology, there could be a material adverse effect on our results of operations and financial condition.

Our business is dependent on certain global automotive market segments.

A substantial portion of our revenue is derived from products supporting RWD light truck and SUV platforms and AWD crossover vehicle platforms in North America, Europe and Asia. Sales and production levels of these vehicle platforms can be affected by many factors, including changes in consumer demand; product mix shifts favoring other types of light vehicles, such as front-wheel drive based crossover vehicles and passenger cars; fuel prices; vehicle electrification; and government regulations. Reduced demand in the market segments we currently supply could have a material adverse impact on our results of operations and financial condition.

Our business could be adversely affected by the cyclical nature of the automotive industry.

Our operations are cyclical because they are directly related to worldwide automotive production, which is itself cyclical and dependent on general economic conditions and other factors, such as credit availability, interest rates, fuel prices, consumer preference and confidence. Our business may be adversely affected by an economic decline or fiscal crisis that results in a reduction of automotive production and sales by our customers.


14


Risks Related to Our Liquidity and Indebtedness

We have incurred substantial indebtedness and our financial condition and operations may be adversely affected by a violation of financial and other covenants.

We have incurred substantial indebtedness and related debt service obligations, which could have important consequences, including:

reduced flexibility in planning for, or reacting to, changes in our business, the competitive environment and the markets in which we operate, and to technological and other changes;
reduced access to capital and increasing borrowing costs generally or for any additional indebtedness to finance future operating and capital expenditures and for general corporate purposes;
lowered credit ratings;
reduced funds available for operations, capital expenditures and other activities; and
competitive disadvantages relative to other companies with lower debt levels.

Our Senior Secured Credit Facilities, comprised of our Revolving Credit Facility, as well as our Term Loan A Facility due 2024 and Term Loan B Facility due 2024, and our senior unsecured notes, contain customary affirmative and negative covenants. Some, or with respect to certain covenants, all of these agreements include financial covenants based on leverage and cash interest expense coverage ratios and limitations on Holdings, AAM Inc., and their restricted subsidiaries to make certain investments, declare or pay dividends or distributions on capital stock, redeem or repurchase capital stock and certain debt obligations, incur liens, incur indebtedness, or merge, make certain acquisitions or sales of assets.

The Senior Secured Credit Facilities and the indentures governing our senior unsecured notes also include customary events of default. Obligations under the Senior Secured Credit Facilities and our senior unsecured notes are required to be guaranteed by most of our U.S. subsidiaries that hold domestic assets. In addition, the Senior Secured Credit Facilities are secured on a first priority basis by all or substantially all of the assets of AAM Inc., the assets of Holdings and each guarantor's assets, including a pledge of capital stock of our U.S. subsidiaries that hold domestic assets, including each guarantor, and a portion of the capital stock of the first tier foreign subsidiaries of AAM Inc. and MPG.

A violation of any of these covenants or agreements could result in a default under these contracts, which could permit the lenders or note holders, as applicable, to accelerate repayment of any borrowings or notes outstanding at that time and levy on the collateral granted in connection with the Senior Secured Credit Facilities.  A default or acceleration under the Senior Secured Credit Facilities or the indentures governing the senior unsecured notes may result in defaults under our other debt agreements and may adversely affect our ability to operate our business, our subsidiaries' and guarantors' ability to operate their respective businesses and our results of operations and financial condition.

The available capacity under our Revolving Credit Facility could be limited by our covenant ratios under certain conditions. An increase in the applicable leverage ratio, as a result of decreased earnings or otherwise, could result in reduced access to capital under our Revolving Credit Facility, which is a significant component of our total available liquidity.

The interest rates included in the agreements that govern our Senior Secured Credit Facilities and certain of our derivative financial instruments are based primarily on the London Interbank Offered Rate (LIBOR). In the future, use of LIBOR is expected to be discontinued and we cannot be certain how long LIBOR will continue to be a viable benchmark interest rate. Use of alternative interest rates could result in increased borrowing costs and volatility in the markets and interest rates.


15


Our company faces substantial pension and other postretirement benefit obligations.

We have significant pension and other postretirement benefit obligations to certain of our associates and retirees. Our ability to satisfy the funding requirements associated with these obligations will depend on our cash flow from operations and our ability to access credit and the capital markets. The funding requirements of these benefit plans, and the related expense reflected in our financial statements, are affected by several factors that are subject to an inherent degree of uncertainty and volatility, including governmental regulation. Key assumptions used to value these benefit obligations and the cost of providing such benefits, funding requirements and expense recognition include the discount rate, the expected long-term rate of return on pension assets, mortality rates and the health care cost trend rate. If the actual trends in these factors are less favorable than our assumptions, this could have an adverse effect on our results of operations and financial condition.

Risks Related to Our International Operations

Our company's global operations are subject to risks and uncertainties, including tariffs and trade relations.

As U.S. companies continue to expand globally, increased complexity exists due to recent changes to corporate tax codes, potential revisions to international tax law treaties, renegotiated trade agreements, including the United States-Mexico-Canada trade agreement, and the United Kingdom's exit from the European Union. These uncertainties, as well as the potential impacts of these agreements, could have a material adverse effect on our business and our results of operations and financial condition. As we continue to expand our business globally, our success will depend, in part, on our ability to anticipate and effectively manage these and other risks.

We have business and technical offices and manufacturing facilities in multiple countries outside the United States. International operations are subject to certain risks inherent in conducting business outside the U.S., such as changes in currency exchange rates, tax laws, price and currency exchange controls, tariffs or import restrictions, nationalization, immigration policies, expropriation and other governmental action. Our global operations also may be adversely affected by political events, domestic or international terrorist events and hostilities, natural disasters and significant weather events, disruptions in the global financial markets, or public health crises, such as pandemic or epidemic illness.

Exchange rate fluctuations could adversely affect our company's global results of operations and financial condition.

As a result of our international operations, we are exposed to foreign currency risks that arise from our normal business operations, including risks associated with transactions that are denominated in currencies other than our local functional currencies. Gains and losses resulting from the remeasurement of assets and liabilities in a currency other than the functional currency of our foreign subsidiaries are reported in current period income. In the future, unfavorable changes in exchange rate relationships between the functional currencies of our subsidiaries and their non-functional currency denominated assets and liabilities could have an adverse impact on our results of operations and financial condition. While we use, from time to time, foreign currency derivative contracts to help mitigate certain of these risks and reduce the effects of fluctuations in exchange rates, our efforts to manage these risks may not be successful.

We are also subject to currency translation risk as we are required to translate the financial statements of our foreign subsidiaries to U.S. dollars. We report the effect of translation for our foreign subsidiaries with a functional currency other than the U.S. dollar as a separate component of stockholders' equity. Unfavorable changes in the exchange rate relationship between the U.S. dollar and the functional currencies of our foreign subsidiaries could have an adverse impact on our results of operations and financial condition.


16


Risks Related to Regulations and Taxes

Negative or unexpected tax consequences, as well as possible changes in foreign and domestic tax laws could adversely affect our results of operations and financial condition.

There have been recent global proposals brought forward by the Organisation for Economic Co-operation and Development (OECD) alongside the Group of Twenty (G-20), for tax jurisdictions to evaluate the potential reform of longstanding corporate tax law principles and treaties that could adversely affect multi-national companies. Although the OECD does not enact tax law, proposals like this or others that lead to substantial changes in enacted tax laws and treaties, such as the 2020 Mexican Tax Reform and the Tax Cuts and Jobs Act signed into law in the United States in 2017, could have a material adverse impact on our results of operations and financial condition.
We file income tax returns in the U.S. federal jurisdiction, as well as various states and foreign jurisdictions. We are also subject to examinations of these income tax returns by the relevant tax authorities. Based on the status of these audits and the protocol of finalizing audits by the relevant tax authorities, it is not possible to estimate the impact of changes, if any, to previously recorded uncertain tax positions. Any negative or unexpected outcomes of these examinations and audits could have a material adverse impact on our results of operations and financial condition.

Our business is subject to costs associated with environmental, health and safety regulations.

Our operations are subject to various federal, state, local and foreign laws and regulations governing, among other things, emissions to air, discharge to waters and the generation, handling, storage, transportation, treatment and disposal of waste and other materials. We believe that our current and former operations and facilities have been, and are being, operated in compliance, in all material respects, with such laws and regulations, many of which provide for substantial fines and criminal sanctions for violations. The operation of our manufacturing facilities entails risks in these areas, however, and there can be no assurance that we will not incur material costs or liabilities. In addition, potentially significant expenditures could be required in order to comply with evolving environmental, health and safety laws, regulations or other pertinent requirements that may be adopted or imposed in the future by governmental authorities.

Risks Related to Our Strategy

Our restructuring initiatives may not achieve their intended outcomes.

We have initiated restructuring actions in recent years to reduce cost and realign certain areas of our business and could initiate further restructuring actions in future periods. There can be no assurance that such restructuring initiatives will successfully achieve the intended outcomes, or that the charges related to such initiatives will not have a material adverse effect on our results of operations and financial condition.

As part of our strategic initiatives, we are actively assessing our product portfolio. As a result, we have divested certain operations and may pursue additional plans to divest certain operations in future periods. Our results of operations or financial condition could be adversely affected if we initiate a divestiture and it is not completed in accordance with our expected timeline, or at all, or if we do not realize the expected benefits of the divestiture.

We may be unable to consummate and successfully integrate acquisitions and joint ventures.

Engaging in acquisitions and joint ventures involves potential risks, including financial risks, risks related to integrating enterprise resource planning systems, and failure to successfully integrate and fully realize the expected benefits of such acquisitions and joint ventures. Integrating acquired operations is a significant challenge and there is no assurance that we will be able to manage integrations successfully. As we continue to expand globally and accelerate our diversification efforts, we may pursue strategic growth initiatives, including through acquisitions and joint ventures. An inability to successfully achieve the levels of organic and inorganic growth from our strategic initiatives could adversely impact our results of operations and financial condition.

Item 1B.Unresolved Staff Comments

None.

17


Item 2.Properties

The table below summarizes our global manufacturing locations and administrative, engineering or technical locations:
North AmericaEuropeAsiaSouth America
United StatesCzech Republic LuxembourgChinaBrazil
     Subiaco, AR (b)     Oxford, MI (b)     Oslavany (b)     Steinfort (c)     Changshu (a)     Araucária (a)
     Bolingbrook, IL (b)      Rochester Hills, MI (c)     Zbysov (b)Poland     Hefei (JV) (a)     Indaiatuba (b)
     Chicago, IL (b)      Royal Oak, MI (b)England     Świdnica (a)     Huzhou (JV) (b)
     Bluffton, IN (a)      Sterling Heights, MI (JV) (b)     Halifax (a)Scotland     Liuzhou (JV) (a)
     Columbus, IN (b)     Southfield, MI (b), (c)France     Glasgow (a)     Shanghai (c)
     Fort Wayne, IN (b)     Three Rivers, MI (a)     Decines (a)Spain     Suzhou (a), (b)
     Fremont, IN (a)     Troy, MI (b)     Lyon (a)     Barcelona (a)India
     North Vernon, IN (b)     Warren, MI (b)Germany     Valencia (b)     Chakan (a)
     Rochester, IN (a)     Malvern, OH (b)     Bad Homburg (c)     Chennai (a)
     Auburn Hills, MI (b)     Minerva, OH (b)     Eisenach (a)     Pune (a), (c)
     Detroit, MI (a), (c)     Twinsburg, OH (b)     Langen (c)Japan
     Fraser, MI (b)     Ridgway, PA (b)     Nurnberg (b)     Tokyo (c)
     Litchfield, MI (a)     St. Mary's, PA (b)     Zell (b)South Korea
     Pyeongtaek (a)
MexicoThailand
     El Carmen (a)     Silao (a), (b)     Rayong (a)
     Ramos Arizpe (a), (b)
(a) Location supports the Driveline segment. (b) Location supports the Metal Forming segment. (c) Administrative, engineering or technical location.

We believe that our property and equipment is properly maintained and in good operating condition. We will continue to evaluate capacity requirements in light of current and projected market conditions. We also intend to continue redeploying assets in order to increase our capacity utilization and reduce future capital expenditures to support program launches.

Item 3.Legal Proceedings

See Note 11 - Commitments and Contingencies in Item 8, "Financial Statements and Supplementary Data" for discussion of legal proceedings and the effect on AAM.

Item 4.     Mine Safety Disclosures
    
Not applicable.

18



Part II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information
        
Our common stock, par value $0.01 per share, is listed for trading on the New York Stock Exchange (NYSE) under the symbol “AXL.” We had approximately 174 stockholders of record as of February 9, 2021.

Dividends

We did not declare or pay any cash dividends on our common stock in 2020. Our Credit Agreement associated with our Senior Secured Credit Facilities limits our ability to declare or pay dividends or distributions on capital stock.

Securities Authorized for Issuance under Equity Compensation Plans

The information regarding our securities authorized for issuance under equity compensation plans is incorporated by reference from our Proxy Statement.
19


Item 6. Selected Financial Data

FIVE YEAR CONSOLIDATED FINANCIAL SUMMARY
Year Ended December 31,
20202019201820172016
(in millions, except per share data)
Statement of operations data
Net sales$4,710.8 $6,530.9 $7,270.4 $6,266.0 $3,948.0 
Gross profit582.7 902.6 1,140.4 1,119.1 726.1 
Selling, general and
   administrative expenses313.9 364.7 385.7 390.1 314.2 
Amortization of intangible assets86.6 95.4 99.4 75.3 5.0 
Impairment charges510.0 (a)665.0 (a)(b)485.5 (a)— — 
Restructuring and acquisition-related costs67.2 57.8 78.9 110.7 26.2 
Gain (loss) on sale of business(1.0)(b)(21.3)(b)15.5 (g)— — 
Operating income (loss)(396.0)(301.6)106.4 543.0 380.7 
Net interest expense200.7 211.5 214.3 192.7 90.5 
Gain on bargain purchase of business 10.8 (e)— — — 
Gain on settlement of capital lease — 15.6 (h)— — 
Net income (loss)(561.1)(c)(d)(484.1)(c)(d)(f)(56.8)(c)(d)337.5 (c)(d)240.7 (c)
Net income (loss) attributable to AAM(561.3)(c)(d)(484.5)(c)(d)(f)(57.5)(c)(d)337.1 (c)(d)240.7 (c)
Diluted earnings (loss) per share$(4.96)$(4.31)$(0.51)$3.21 $3.06 
Balance sheet data
Cash and cash equivalents$557.0 $532.0 $476.4 $376.8 $481.2 
Total assets5,916.3 6,644.6 7,510.7 7,882.8 3,422.3 (j)
Total long-term debt, net3,441.3 3,612.3 3,686.8 3,969.3 1,400.9 
Total AAM stockholders' equity370.5 977.6 1,483.9 1,536.0 504.2 (j)
Dividends declared per share — — — — 
Statement of cash flows data
Cash provided by operating activities$454.7 $559.6 $771.5 $647.0 $407.6 
Cash used in investing activities(218.4)(306.6)(478.2)(1,378.1)(227.7)
Cash provided by (used in) financing activities(214.5)(200.0)(184.5)615.6 18.4 
Other data
Depreciation and amortization$521.9 $536.9 $528.8 $428.5 $201.8 
Capital expenditures215.6 433.3 524.7 477.7 223.0 
Proceeds from sale of business, net
 141.2 (b)47.1 (g)5.9 — 
Acquisition of business, net of cash acquired
 9.4 1.3 895.5 (i)5.6 
Purchase buyouts of leased equipment0.1 0.9 0.5 13.3 4.6 


20



(a)In 2020, we recorded a goodwill impairment charge for both our Driveline and Metal Forming reporting units totaling $510 million due to the significant reduction in global automotive production volumes as a result of the impact of COVID-19. In 2019, we recorded a goodwill impairment charge of $440 million associated with the annual goodwill impairment test for our Metal Forming reporting unit. In 2018, we recorded a goodwill impairment charge associated with the annual goodwill impairment test for our former Casting and Powertrain reporting units totaling $485.5 million. See Note 3 - Goodwill and Other Intangible Assets in Item 8. Financial Statements and Supplementary Data for further detail on our goodwill impairment charges.

(b)In 2019, we completed the sale of our U.S. Casting operations for $245 million, consisting of $185 million in cash, of which we received net proceeds of $141.2 million subsequent to certain customary closing adjustments, and a $60 million deferred payment obligation. In 2019, we recorded a charge of $225 million to reduce the carrying value of our U.S. Casting operations to fair value less cost to sell upon reclassification of the assets and liabilities to held-for-sale, and a loss of $21.3 million upon deconsolidation at closing. In 2020, we finalized certain customary post-closing adjustments associated with this sale and recorded an additional loss of $1.0 million.

(c)For 2020, these amounts include goodwill impairment charges of $510.0 million for which there was no corresponding tax benefit, and approximately $53.1 million of restructuring and acquisition-related costs, net of tax. For 2019, these amounts include impairment charges of $617.8 million, net of tax, and approximately $45.6 million of restructuring and acquisition-related costs, net of tax. For 2018, these amounts include goodwill impairment charges of $400.3 million, net of tax, and approximately $62.4 million of restructuring and acquisition-related costs, net of tax. For 2017, these amounts include approximately $67.3 million of restructuring and acquisition-related costs, net of tax. For 2016, these amounts include approximately $18.4 million for restructuring and acquisition-related costs, net of tax.

(d)Includes charges of $6.2 million, net of tax, in 2020, $6.6 million, net of tax, in 2019, $15.3 million, net of tax, in 2018, and $2.3 million, net of tax, in 2017 related to debt refinancing and redemption costs.

(e)In 2019, we recognized a gain on bargain purchase of $10.8 million associated with the acquisition of certain operations of Mitec Automotive AG.

(f)In 2019, we offered a voluntary one-time lump sum payment option to certain eligible terminated vested participants in our U.S. pension plans that, if accepted, would settle our pension obligations to them. As a result of this settlement, we remeasured the assets and liabilities of our U.S. pension plans, which resulted in a non-cash charge of approximately $7.7 million, net of tax, related to the accelerated recognition of certain deferred losses.

(g)In 2018, we completed the sale of the aftermarket business associated with our former Powertrain segment for approximately $50 million, of which we received net proceeds of $47.1 million. As a result of the sale, we recorded a $15.5 million gain.

(h)In 2018, we reached a settlement agreement related to a capital lease obligation that we had recognized as a result of the acquisition of Metaldyne Performance Group, Inc. (MPG). This settlement resulted in a gain of $15.6 million, including accrued interest.

(i)In 2017, we completed the acquisitions of MPG and USM Mexico and paid cash of $895.5 million for these acquisitions, net of cash acquired. These acquisitions significantly impacted many of our financial statement line items in 2017 as compared to 2016.

(j)These amounts have been adjusted by $25.8 million, net of tax, related to the retrospective application of our change in accounting principle for indirect inventory, in which we changed our method of accounting from capitalizing indirect inventory and recording as expense when the inventory was consumed, to expensing indirect inventory at the time of purchase. This change in accounting principle was effective in the second quarter of 2017.

21


Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

COMPANY OVERVIEW

We are a global Tier 1 supplier to the automotive industry. We design, engineer and manufacture driveline and metal forming products that are making the next generation of vehicles smarter, lighter, safer and more efficient. We employ approximately 20,000 associates, operating at nearly 80 facilities in 17 countries, to support our customers on global and regional platforms with a focus on operational excellence, quality and technology leadership.

We are a primary supplier of driveline components to General Motors Company (GM) for its full-size rear-wheel drive (RWD) light trucks, sport utility vehicles (SUV), and crossover vehicles manufactured in North America, supplying a significant portion of GM's rear axle and four-wheel drive and all-wheel drive (4WD/AWD) axle requirements for these vehicle platforms. We also supply GM with various products from our Metal Forming segment. Sales to GM were approximately 39% of our consolidated net sales in 2020, 37% in 2019, and 41% in 2018.

We also supply driveline system products to FCA US LLC (FCA, now part of Stellantis N.V. effective January 2021) for programs including the heavy-duty Ram full-size pickup trucks and its derivatives, the AWD Chrysler Pacifica and the AWD Jeep Cherokee. In addition, we sell various products to FCA from our Metal Forming segment. Sales to FCA were approximately 19% of our consolidated net sales in 2020, 17% in 2019 and 13% in 2018.

We are also a supplier to Ford Motor Company (Ford) for driveline system products on certain vehicle programs including the Ford Edge, Ford Escape, Lincoln Nautilus, and we sell various products to Ford from our Metal Forming segment. Sales to Ford were approximately 12% of our consolidated net sales in 2020, 9% in of 2019 and 8% in 2018.

IMPACT OF NOVEL CORONAVIRUS (COVID-19)

COVID-19 OPERATIONAL IMPACT AND AAM ACTIONS

In March of 2020, COVID-19 was designated by the World Health Organization as a pandemic illness and began to significantly disrupt global automotive production. In an effort to mitigate the spread of COVID-19, many governmental and public health agencies in locations in which we operate implemented shelter-in-place orders or similar measures. The majority of our customers temporarily ceased or significantly reduced production near the end of March, which continued into the second half of the second quarter. As a result, substantially all of our manufacturing facilities either temporarily suspended production or experienced significant reductions in volumes during this period.

At AAM, safety is our top responsibility and that includes the health and wellness of our associates globally. In response to COVID-19, we instituted several operational measures to ensure the safety of our associates, which included the following:

Assembled a COVID-19 Task Force comprised of AAM's senior leadership working closely with associates across several functions and regions to coordinate decision making and communication related to actions taken by AAM to mitigate the impact of COVID-19, and to ensure that AAM is compliant with all region-specific regulations or requirements associated with COVID-19;
Temporarily suspended or reduced production at manufacturing facilities and directed associates who could do so to work remotely;
Maintained communication with customers, including planning for business resumption and monitoring announcements regarding new program deferrals or other changes;
Initiated thorough cleaning and decontamination procedures at our facilities in preparation for resuming operations; and
Designed additional safety measures to further protect associates as production was restored and our associates resumed working in certain of our global facilities.


22


By the end of the first quarter of 2020, our manufacturing locations in Asia, which were impacted by COVID-19 earlier than other global regions, began to stabilize and return to more normalized levels of production. We restarted operations in North America and Europe in May 2020, and we have continued to ramp up production, along with our customers and supply base, through the fourth quarter of 2020. Continuing to maintain more normalized levels of production will depend on future developments, including the potential extension of shelter-in-place orders and increased levels of production by our customers, which are outside of our control. We continue to monitor the impact of COVID-19 on our suppliers, as well as on our customers and their suppliers.

FINANCIAL IMPACT OF COVID-19

We estimate that the impact of COVID-19 on net sales was approximately $1,243 million for the year ended December 31, 2020 and the impact to gross profit of this reduction in net sales was approximately $368 million for the year ended December 31, 2020. Due to the significant uncertainty associated with the extent of the impact of COVID-19, including the possibility of resurgences of COVID-19 cases and our ability to sustain more normalized levels of production, we cannot estimate any potential future impact of COVID-19 on our results of operations and financial condition.

In order to mitigate the financial impact of COVID-19, we have continued our emphasis on cost management, and have implemented additional measures to adjust to our customers’ revised production schedules, including the following:

Continuing to flex our variable cost structure;
Continuing to manage our controllable expenses, net of costs to ensure the health and safety of our
associates;
Reduced the annual cash retainer for each non-employee director by 40% through September 30, 2020;
Reduced salaries for executive officers by 30% and for certain other associates by various percentages depending on level through September 30, 2020;
Reduced our capital expenditures for the year;
Amended our Credit Agreement to, among other things, revise our financial maintenance covenants to provide additional financial flexibility; and
Utilizing options to defer and reduce tax payments and to claim tax refunds and employment credits through the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) and similar global initiatives.

The measures we are taking to address the impact of COVID-19 are expected to remain in place until further clarity can be achieved regarding the recovery and stabilization of the global economy, as well as the resulting impact of COVID-19 on the global automotive industry. We expect to adjust our use of these measures, to the extent possible, based on production volumes and customer demand.

MANUFACTURING FACILITY FIRE

On September 22, 2020, a significant industrial fire occurred at our Malvern Manufacturing Facility in Ohio (Malvern Fire). All associates were evacuated safely and without injury. We continue to focus on managing this disruption and protecting continuity of supply to our customers, including utilizing production capacity and resources at other AAM facilities. See Note 15 - Manufacturing Facility Fire and Insurance Recovery for additional detail regarding the Malvern Fire.


23


INDUSTRY TRENDS

There are a number of significant trends affecting the markets in which we compete. Intense competition, volatility in the price of raw materials, including steel, other metallic materials, and resources used in vehicle electrification and electronic components, and significant pricing pressures remain. At the same time, there is a focus on investing in future products that will incorporate the latest technology and meet changing customer demands as certain original equipment manufacturers (OEMs) place increased emphasis on the development of battery and hybrid electric vehicles. The continued advancement of technology and product innovation, as well as the capability to source programs on a global basis, are critical to attracting and retaining business in our global markets.

INCREASE IN DEMAND FOR ELECTRIFICATION AND ELECTRONIC INTEGRATION The electrification of vehicles continues to expand, driven by a shift in focus by certain OEMs toward battery and hybrid electric vehicles, government regulations related to emissions, such as the Corporate Average Fuel Economy standards, and consumer demand for greater vehicle performance, enhanced functionality, increased electronic content and vehicle connectivity, and affordable convenience options. We are responding, in part, through the development of our hybrid and electric driveline systems, and related subsystems and components, which allow us to meet our customers' needs for high performance vehicles with improved fuel economy and reduced emissions. We recently entered into a technology development agreement with Suzhou Inovance Automotive Ltd., a leading provider of automotive power electronics and powertrain systems in China, to accelerate the development and delivery of scalable, next-generation 3-in-1 electric drive systems, which integrate an inverter, electric motor and gearbox. To date, our hybrid and electric driveline systems have been awarded multiple contracts and received multiple awards.

As vehicle electrification and electronic components become an increasingly larger focus for OEMs and suppliers, the industry will likely continue to see the addition of new market entrants from non-traditional automotive companies, including increased competition from technology companies. Further, some traditional automotive industry participants are developing strategic partnerships with technology companies as each party seeks to leverage the existing customer relationships and technical knowledge of the partner, and expedite the development and commercialization of this new technology. An area of focus will be the product development cycle and bridging the gap between the shorter development cycles of information technology (IT) software and controls and the longer development cycles of traditional powertrain components. Our hybrid and electric driveline systems, EcoTrac® Disconnecting AWD system, VecTrac Torque Vectoring Technology and TracRite® Differential Technology, are examples of AAM's enhanced capabilities in supporting vehicle electrification and electronic integration.

INCREASED DEMAND FOR FUEL EFFICIENCY AND EMISSIONS REDUCTIONS There has been an increased demand for technologies designed to help reduce emissions, increase fuel economy and minimize the environmental impact of vehicles. As a result, OEMs and suppliers are competing to develop and market new and alternative technologies, such as electric vehicles, hybrid vehicles, fuel cells, higher speed transmissions, and downsized, fuel-efficient engines. At the same time, OEMs and suppliers are improving products to increase fuel economy and reduce emissions through lightweighting and efficiency initiatives.

We are responding with ongoing research and development (R&D) activities that focus on fuel economy, emissions reductions and environmental improvements by integrating electronics and technology. Through the development of our EcoTrac® Disconnecting AWD system, hybrid and electric driveline systems, QuantumTM lightweight axle technology, high-efficiency axles, PowerLite® axles and PowerDense® gears, high strength connecting rod technology, refined vibration control systems, and forged axle tubes, we have significantly advanced our efforts to improve fuel efficiency, safety, and ride and handling performance while reducing emissions and mass. These efforts have led to new business awards and further position us to compete in the global marketplace.

In addition to AAM's organic growth in technology and processes, our acquisitions of Metaldyne Performance Group, Inc. (MPG) and certain operations of Mitec Automotive AG (Mitec), as well as our investment in our Liuzhou AAM joint venture, have provided us with complementary technologies, expanded our product portfolio, significantly diversified our global customer base, and strengthened our long-term financial profile through greater scale. The synergies achieved through our strategic initiatives have enhanced AAM's ability to compete in today's technological and regulatory environment, while remaining cost competitive through increased scale and integration.


24


SHIFT IN CONSUMER PREFERENCE AND OEM PRODUCTION TO LIGHT TRUCK, CROSS-OVER VEHICLES (CUVs) AND SPORT-UTILITY VEHICLES (SUVs) There has been a trend toward increased demand for light trucks, CUVs and SUVs in certain markets, while demand for passenger cars has decreased. This increase in demand for light trucks, CUVs and SUVs has been driven by changes in consumer preference as technology advancements have made these vehicles lighter and more efficient, while the stabilizing cost of fuel has made owning these vehicles more affordable.

Certain OEMs are responding to this change in consumer preference by shifting their focus to developing and manufacturing these types of vehicles, resulting in a significant reduction of passenger car vehicle programs, especially in North America. We have benefited from this trend as a significant portion of our business supports light truck, CUV and SUV programs in North America.

GLOBAL AUTOMOTIVE PRODUCTION AND INDUSTRY CONSOLIDATION As countries around the world continue to increase in importance to the automotive industry, our customers continue to design their products to meet demand in global markets and therefore require global support from their suppliers. For this reason, it is critical that suppliers maintain a global presence in these markets in order to compete for new contracts. We have business and engineering offices around the world to support our global locations and provide technical solutions to our customers on a regional basis, including in China and Europe where consumer acceptance of electric vehicles has been strong.

The cyclical nature of the automotive industry, volatile commodity prices, the shifting demands of consumer preference, regulatory requirements and trade agreements require OEMs and suppliers to remain agile with regard to product development and global capability. A critical objective for OEMs and suppliers is the ability to meet these global demands while effectively managing costs. Some OEMs and suppliers may be preparing for these challenges through merger and acquisition (M&A) activity, including potential increased M&A activity as a result of the recent economic impact of COVID-19, development of strategic partnerships and reduction of vehicle platform complexity. In order to effectively drive technology development, recognize cost synergies, and increase global footprint, the industry may continue to see consolidation in the supply base as companies recognize and respond to the need for scalability.

EVOLUTION OF THE AUTOMOTIVE INDUSTRY AS DEMAND FOR CAR-SHARING, RIDE-SHARING AND AUTONOMOUS VEHICLES INCREASES In addition to selling vehicles, OEMs are increasingly focused on offering their own car-sharing rental businesses and ride-sharing services. Car-sharing typically allows consumers to rent a car for a short period of time, while ride-sharing matches people to available carpools or other services that provide on-demand mobility. With population growth, increased government regulations to ease congestion and generational shifts in preferences, it is expected that the markets for these services will continue to grow, which could cause a change in the type of vehicles utilized. However, the growth in this area may also be temporarily curtailed by the impact of COVID-19, as social distancing recommendations have led to reduced utilization of ride-sharing services by consumers.

Another trend developing is the expectation that autonomous, self-driving cars will become more common with continued advancements in technology. Autonomous vehicles present many possible benefits, such as a reduction in traffic collisions caused by human error and reduced traffic congestion, but there are also foreseeable challenges such as liability for damage and software safety and reliability. The increased integration of electronics and vehicle connectivity that will likely be required in autonomous vehicle developments will provide an opportunity for suppliers, such as AAM, with advanced capabilities in this area to be competitive in this expanding market.
25


The discussion of our Results of Operations, Reportable Segments, and Liquidity and Capital Resources for 2019, as compared to 2018, can be found within "Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 14, 2020, which discussion is incorporated herein by reference.

In the fourth quarter of 2019, we completed the sale of the United States (U.S.) operations of our Casting segment (the Casting Sale). The Casting Sale did not include the entities that conduct AAM's casting operations in El Carmen, Mexico, which are now included in our Driveline segment. The Casting Sale did not qualify for classification as discontinued operations, as it did not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results.

RESULTS OF OPERATIONS

NET SALES Net sales were $4,710.8 million in 2020 as compared to $6,530.9 million in 2019. Our change in sales in 2020, as compared to 2019, primarily reflects an estimated reduction of approximately $1,243 million associated with the decline in global automotive production as a result of COVID-19, and a reduction of $628 million as a result of the Casting Sale. Net sales for 2020, as compared to 2019, also decreased by approximately $81 million associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments. These reductions in sales were partially offset as 2019 sales reflect an estimated $243 million reduction associated with the GM work stoppage that occurred in the second half of 2019. There was no such impact in 2020.

COST OF GOODS SOLD Cost of goods sold was $4,128.1 million in 2020 as compared to $5,628.3 million in 2019. The change in cost of goods sold in 2020, as compared to 2019, principally reflects an estimated reduction of approximately $875 million associated with the decline in global automotive production as a result of COVID-19, and a reduction of $607 million as a result of the Casting Sale. Cost of goods sold was also impacted by a decrease of approximately $81 million related to metal market pass-through costs and the impact of foreign exchange, as well as the impact of improved operating performance and lower launch costs and our emphasis on cost management, including the additional measures that we implemented in response to the impact of COVID-19. These reductions in cost of goods sold were partially offset as 2019 cost of goods sold reflects an estimated $159 million reduction associated with the GM work stoppage and there was no such impact in 2020.

As a result of the Malvern Fire, we recorded $63.5 million of expenses and recorded an estimated insurance recovery receivable of $54.2 million, which resulted in a net impact to Cost of goods sold of $9.3 million for the twelve months ended December 31, 2020, which includes our applicable deductible. See Note 15 - Manufacturing Facility Fire and Insurance Recovery for additional detail regarding the Malvern Fire.

Materials costs as a percentage of total cost of goods sold were approximately 55% in 2020 and 56% in 2019.

GROSS PROFIT Gross profit was $582.7 million in 2020 as compared to $902.6 million in 2019. Gross margin was 12.4% in 2020 as compared to 13.8% in 2019. Gross profit and gross margin were impacted by the factors discussed in Net Sales and Cost of Goods Sold above. While we were able to significantly reduce our variable costs during 2020, the sharp decline in sales that began during the first quarter and extended into the second quarter as a result of the impact of COVID-19, as well as the magnitude of the decline in sales, resulted in a reduction of both gross profit and gross margin.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A) SG&A (including R&D) was $313.9 million in 2020 as compared to $364.7 million in 2019. SG&A as a percentage of net sales was 6.7% in 2020 and 5.6% in 2019. R&D spending was $117.4 million in 2020 as compared to $144.7 million in 2019. The change in SG&A in 2020, as compared to 2019, was primarily attributable to lower net R&D expense, which includes a customer engineering, design and development (ED&D) recovery of approximately $15 million. The decrease in SG&A also reflects lower compensation-related expense due, in part, to our restructuring initiatives and the impact of our emphasis on cost management, including the additional measures that we implemented in response to the impact of COVID-19.

The increase in SG&A as a percentage of sales during 2020, as compared to 2019, was primarily attributable to the decline in sales as a result of COVID-19.

26


AMORTIZATION OF INTANGIBLE ASSETS Amortization expense for the year ended December 31, 2020 was $86.6 million as compared to $95.4 million for the year ended December 31, 2019. The reduction in amortization expense related to intangible assets reflects the Casting Sale and the disposal of the intangible assets associated with this business.

IMPAIRMENT CHARGES In the first quarter of 2020, the reduction in global automotive production volumes caused by the impact of COVID-19 represented an indicator to test our goodwill for impairment. As a result of this goodwill impairment test, we determined that the carrying values of our Driveline and Metal Forming reporting units were greater than their respective fair values. As such, we recorded a total goodwill impairment charge of $510.0 million in the first quarter of 2020. See Note 3 - Goodwill and Other Intangible Assets for further detail.

As a result of our annual goodwill impairment test in the fourth quarter of 2019, we determined that the carrying value of our Metal Forming segment was greater than its fair value. As such, we recorded a goodwill impairment charge of $440.0 million in 2019 associated with this segment.

In conjunction with the Casting Sale, the assets and liabilities associated with this business met the criteria to be classified as held-for-sale. 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.

RESTRUCTURING AND ACQUISITION-RELATED COSTS Restructuring and acquisition-related costs were $67.2 million in 2020 and $57.8 million in 2019. As part of our restructuring actions, we incurred severance charges of approximately $22.3 million, as well as implementation costs, consisting primarily of professional fees and plant exit costs, of approximately $36.1 million during 2020. In 2019, we incurred severance charges of approximately $19.4 million, as well as implementation costs, consisting primarily of professional fees and plant exit costs, of approximately $20.4 million. We expect to incur approximately $50 million to $65 million of total restructuring costs in 2021.

Integration charges of $8.8 million were incurred in 2020 as we furthered the integration of global enterprise planning (ERP) systems at legacy MPG locations. This compares to acquisition-related costs and integration charges of $18.0 million in 2019. We expect to incur additional integration charges of approximately $5 million in 2021 as we finalize the integration of ERP systems at legacy MPG locations. See Note 2 - Restructuring and Acquisition-Related Costs for further detail.

LOSS (GAIN) ON SALE OF BUSINESS In December 2019, we completed the Casting Sale and recorded a loss on sale of business of $21.3 million. During 2020, we finalized certain customary post-closing calculations associated with the Casting Sale, resulting in an additional loss on sale of $1.0 million. These losses are presented in the Loss (gain) on sale of business line item of our Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. See Note 16 - Acquisitions and Dispositions for further detail.

OPERATING INCOME (LOSS) Operating loss was $396.0 million in 2020 as compared to operating loss of $301.6 million in 2019. Operating margin was (8.4)% in 2020 as compared to (4.6)% in 2019. The changes in operating income (loss) and operating margin in 2020, as compared to 2019, were due to the factors discussed in Net Sales, Cost of Goods Sold, Gross Profit, SG&A, Amortization of Intangible Assets, Impairment Charges, Restructuring and Acquisition-Related Costs and Loss (Gain) on Sale of Business above.

INTEREST EXPENSE Interest expense was $212.3 million in 2020 and $217.3 million in 2019. The weighted-average interest rate of our total debt outstanding was 5.6% in 2020 and 5.8% in 2019. We expect our interest expense in 2021 to be approximately $200 million to $210 million.

INTEREST INCOME Interest income was $11.6 million in 2020 and $5.8 million in 2019. Interest income primarily includes interest earned on cash and cash equivalents, realized and unrealized gains and losses on our short-term investments during the period, and the impact of the interest rate differential on our fixed-to-fixed cross-currency swap.


27


OTHER INCOME (EXPENSE) Following are the components of Other Income (Expense) for 2020 and 2019:

Debt refinancing and redemption costs In December 2020, we made a voluntary prepayment of $100 million on our Term Loan B Facility and paid approximately $15 million on our Term Loan A Facility due 2024, which included approximately $13 million for the prepayment of all required payments under the Term Loan A Facility due 2024 for 2021. As a result, we expensed approximately $1.2 million for the write-off of the unamortized debt issuance costs that we had been amortizing over the life of these borrowings.

Also in 2020, we voluntarily redeemed our 6.625% Notes due 2022, which resulted in total principal payments of $450 million and the payment of $7.7 million in accrued interest. As a result, we expensed approximately $1.7 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 $5.0 million for the payment of early redemption premiums.

In December 2019, we used a portion of the cash proceeds from the Casting Sale to make a payment on our Term Loan B Facility, which included a principal payment of $59.8 million and $0.4 million in accrued interest. We expensed approximately $1.0 million for the write-off of a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of the borrowing.

In July 2019, Holdings, AAM, Inc., and certain subsidiaries of Holdings entered into the First Amendment to the Credit Agreement (First Amendment). 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), reduced the availability under the Revolving Credit Facility from $932 million to $925 million and 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 remained 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. 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.

In May 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.

Gain on bargain purchase of a business In the fourth quarter of 2019, we completed the acquisition of certain operations of Mitec, under which we acquired $20.2 million of net assets for a purchase price of $9.4 million, which was funded entirely with available cash. We recognized a gain on bargain purchase of $10.8 million associated with this acquisition.

Pension settlement charges In 2020, our restructuring activities resulted in the accelerated recognition of certain deferred losses under our pension plans totaling $0.5 million. In 2019, we offered a voluntary one-time lump sum payment option to certain eligible terminated vested participants in our U.S. pension plans that, if accepted, settled our pension obligations to them. This resulted in a non-cash settlement charge of $9.8 million in the fourth quarter of 2019 related to the accelerated recognition of certain deferred losses.

Other, net Other, net, which includes the net effect of foreign exchange gains and losses, our proportionate share of earnings from equity in unconsolidated subsidiaries, and all components of net periodic pension and postretirement benefit costs other than service costs and certain settlement charges, was expense of $5.2 million in 2020, compared to expense of $12.5 million in 2019. The decreased expense in other, net in 2020, as compared to 2019, was primarily the result of approximately $6 million of lower net foreign currency remeasurement losses.


28


INCOME TAX BENEFIT Income tax was a benefit of $49.2 million in 2020, as compared to a benefit of $48.9 million in 2019. Our effective income tax rate was 8.1% in 2020 as compared to 9.2% in 2019.

In 2020, our effective income tax rate varied from the U.S. federal statutory rate primarily as a result of the goodwill impairment charge, which resulted in no income tax benefit, as well as favorable foreign tax rates, the impact of tax credits, and the finalization of an advance pricing agreement in a foreign jurisdiction, which resulted in a tax benefit of approximately $6.8 million. We also recognized a tax benefit of approximately $14.4 million related to our ability to carry back prior year losses, as well as projected current year losses, under the CARES Act to years with the previous 35% tax rate. These income tax benefits were partially offset by our inability to realize an income tax benefit for losses incurred in certain foreign and state jurisdictions, as well as a partial valuation allowance of approximately $5.3 million on certain U.S. federal income tax attributes.

In 2019, our income tax rate varied from the U.S. federal statutory rate primarily as a result of the goodwill impairment charge, which resulted in no income tax benefit, as well as the incremental tax expense associated with the global intangible low-taxed income inclusion under the Tax Cuts and Jobs Act of 2017 (the 2017 Act), and our inability to realize an income tax benefit for losses incurred in certain foreign and state jurisdictions. These items were partially offset by the impact of favorable foreign tax rates and income tax credits. In addition, as part of the 2017 Act, a one-time transition tax (Transition Tax) was imposed on certain foreign earnings for which U.S. income tax was previously deferred. The Department of Treasury and Internal Revenue Service issued final regulations on February 5, 2019 regarding the Transition Tax, which changed the manner in which we are required to compute the Transition Tax when it is recognized over a two-year period. The application of the final regulations resulted in a $9.3 million income tax benefit, which was recorded in 2019, the period in which the final regulations were issued.

Due to the uncertainty associated with the extent and ultimate impact of COVID-19 on global automotive production volumes, we may experience lower than projected earnings in certain jurisdictions in future periods, and it is reasonably possible that changes in valuation allowances could be recognized in the next twelve months as a result.

NET LOSS ATTRIBUTABLE TO AAM AND EARNINGS (LOSS) PER SHARE (EPS) Net loss attributable to AAM was $561.3 million in 2020 as compared to $484.5 million in 2019. Diluted loss per share was $4.96 in 2020 as compared to a diluted loss of $4.31 per share in 2019. Net Loss and EPS were primarily impacted by the factors discussed above.



29


SEGMENT REPORTING

Our business is organized into Driveline and Metal Forming segments, with each representing a reportable segment under Accounting Standards Codification (ASC) 280 - Segment Reporting. In the fourth quarter of 2019, we completed the Casting Sale. The Casting Sale did not qualify for classification as discontinued operations, as it did not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results. As such, we continue to present Casting as a segment in the tables below, which is comprised entirely of the U.S. casting operations that were included in the sale.

The results of each segment are regularly reviewed by the chief operating decision maker to assess the performance of the segment and make decisions regarding the allocation of resources.

Our product offerings by segment are as follows:

Driveline products consist primarily of front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, SUVs, CUVs, passenger cars and commercial vehicles; and
Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears and assemblies, connecting rods and variable valve timing products for OEMs and Tier 1 automotive suppliers.


The following tables outline our sales and Segment Adjusted EBITDA for each of our reportable segments for the years ended December 31, 2020, and 2019 (in millions):

Year Ended December 31, 2020
DrivelineMetal FormingCastingTotal
Sales$3,635.6 $1,439.2 $— $5,074.8 
Less: Intersegment sales30.1 333.9 — 364.0 
Net external sales$3,605.5 $1,105.3 $— $4,710.8 
Segment adjusted EBITDA$501.7 $218.1 $— $719.8 

Year Ended December 31, 2019
DrivelineMetal FormingCastingTotal
Sales$4,550.2 $1,845.2 $669.2 $7,064.6 
Less: Intersegment sales100.5 391.7 41.5 533.7 
Net external sales$4,449.7 $1,453.5 $627.7 $6,530.9 
Segment adjusted EBITDA$610.8 $316.5 $43.0 $970.3 

The change in Driveline sales for the year ended December 31, 2020, as compared to the year ended December 31, 2019, primarily reflects an estimated reduction of approximately $1,037 million associated with the impact of the decline in global automotive production as a result of COVID-19. This estimated reduction includes approximately $974 million related to external customers. The change in Driveline sales also reflects a reduction of approximately $41 million, associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments. These reductions in sales were partially offset as 2019 sales reflect a reduction associated with the GM work stoppage that occurred in the second half of 2019. There was no such impact in 2020.

30


The change in net sales in our Metal Forming segment for the year ended December 31, 2020, as compared to the year ended December 31, 2019, primarily reflects an estimated reduction of approximately $380 million associated with the impact of the decline in global automotive production as a result of COVID-19. This estimated reduction includes approximately $269 million related to external customers. Also for the year ended December 31, 2020, as compared to the year ended December 31, 2019, Metal Forming sales were impacted by a reduction of approximately $40 million associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments.

The change in net sales in our Casting segment for the year ended December 31, 2020, as compared to the year ended December 31, 2019, is the result of the Casting Sale that was completed in the fourth quarter of 2019 as AAM no longer operates in this business.

We use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Segment Adjusted EBITDA is defined as EBITDA for our reportable segments excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gain (loss) on the sale of a business, impairment charges, pension settlements, and non-recurring items.

For the year ended December 31, 2020, as compared to the year ended December 31, 2019, the change in Segment Adjusted EBITDA for the Driveline segment was primarily attributable to lower net global automotive production volumes as a result of the impact of COVID-19. This was partially offset by improved operating performance and lower launch costs, as well as the impact of a customer ED&D recovery of approximately $15 million. The change in Driveline Segment Adjusted EBITDA also reflects the impact of our continued emphasis on cost management, and the additional measures that we implemented in response to the impact of COVID-19.

For the year ended December 31, 2020, as compared to the year ended December 31, 2019, the change in Metal Forming Segment Adjusted EBITDA was primarily attributable to the impact of the decline in global automotive production as a result of the impact of COVID-19. This was partially offset by improved operating performance, as well as the impact of our continued emphasis on cost management, and the additional measures that we implemented in response to the impact of COVID-19.

For the year ended December 31, 2020, as compared to the year ended December 31, 2019, the change in Segment Adjusted EBITDA for our Casting segment was the result of the Casting Sale that was completed in the fourth quarter of 2019 as AAM no longer operates in this business.

31


Reconciliation of Non-GAAP and GAAP Information

In addition to results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) in this MD&A, we have provided certain non-GAAP financial measures such as EBITDA and Total Segment Adjusted EBITDA. Such information is reconciled to its closest GAAP measure in accordance with Securities and Exchange Commission rules below.

We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Total Segment Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gain (loss) on the sale of a business, impairment charges, pension settlements, and non-recurring items. We believe that EBITDA and Total Segment Adjusted EBITDA are meaningful measures of performance as they are commonly utilized by management and investors to analyze operating performance and entity valuation. Our management, the investment community and the banking institutions routinely use EBITDA and Total Segment Adjusted EBITDA, together with other measures, to measure our operating performance relative to other Tier 1 automotive suppliers and to assess the relative mix of Adjusted EBITDA by segment. We also believe that Total Segment Adjusted EBITDA is a meaningful measure as it is used for operational planning and decision-making purposes. These non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, non-GAAP financial measures as presented by AAM may not be comparable to similarly titled measures reported by other companies.

Year Ended December 31,
20202019
Net loss$(561.1)$(484.1)
Interest expense212.3 217.3 
Income tax benefit(49.2)(48.9)
Depreciation and amortization521.9 536.9 
EBITDA$123.9 $221.2 
Restructuring and acquisition-related costs67.2 57.8 
Debt refinancing and redemption costs7.9 8.4 
Loss on sale of business1.0 21.3 
Impairment charges510.0 665.0 
Pension settlements0.5 9.8 
Non-recurring items:
Malvern Fire charges, net of recoveries9.3 — 
Gain on bargain purchase of business (10.8)
Other non-recurring items (2.4)
Total Segment Adjusted EBITDA$719.8 $970.3 

32


LIQUIDITY AND CAPITAL RESOURCES

Our primary liquidity needs are to fund debt service obligations, capital expenditures and working capital requirements, in addition to advancing our strategic initiatives. We believe that operating cash flow, available cash and cash equivalent balances and available committed borrowing capacity under our Senior Secured Credit Facilities will be sufficient to meet these needs.

COVID-19 Considerations Related to Liquidity and Capital Resources

In order to mitigate the financial impact of COVID-19, we have implemented measures to conserve cash and protect our liquidity position, including the following:

Continuing to flex our variable cost structure;
Continuing to manage our controllable expenses, net of costs to ensure the health and safety of our
associates;
Reduced the annual cash retainer for each non-employee director by 40% through September 30, 2020;
Reduced salaries for executive officers by 30% and for certain other associates by various percentages depending on level through September 30, 2020;
Reduced our capital expenditures for the year;
Amended our Credit Agreement to, among other things, revise our financial maintenance covenants to provide additional financial flexibility; and
Utilizing options to defer and reduce tax payments and to claim tax refunds and employment credits through the CARES Act and similar global initiatives.

At December 31, 2020 we had approximately $1.5 billion of liquidity consisting of $557 million of cash and cash equivalents, approximately $891 million of available borrowings under our Revolving Credit Facility and approximately $73 million of available borrowings under foreign credit facilities. We have no significant debt maturities before 2024. Based on our cash and cash equivalents, together with available borrowings under credit facilities, and the measures we are taking to conserve cash, we believe that our current liquidity position and projected operating cash flows will be sufficient to meet our primary cash needs for the next 12 months.

OPERATING ACTIVITIES Net cash provided by operating activities was $454.7 million in 2020 as compared to $559.6 million in 2019. The following factors impacted cash provided by operating activities:

Impact of COVID-19 We experienced lower earnings and cash flows from operating activities as a result of the significant reduction in production volumes during the year ended December 31, 2020 due to the impact of COVID-19.

Accounts receivable We experienced a decrease in cash flow from operating activities of approximately $35 million related to the change in our accounts receivable balance from December 31, 2019 to December 31, 2020, as compared to the change in accounts receivable from December 31, 2018 to December 31, 2019. This change was primarily attributable to the timing of payments from customers, partially offset by a slight increase in sales in the fourth quarter of 2020 as compared to the fourth quarter of 2019.

Accounts payable and accrued expenses We experienced an increase in cash flow from operating activities of approximately $61 million related to the change in our accounts payable and accrued expenses balance from December 31, 2019 to December 31, 2020, as compared to the change in balance from December 31, 2018 to December 31, 2019. This change was attributable primarily to the favorable impact of working capital initiatives, partially offset by a reduction in accounts payable as a result of the timing of payments to suppliers.

Income taxes Income taxes paid, net was $2.1 million in 2020, as compared to $57.1 million in 2019. During 2020, we received an income tax refund of approximately $31 million related to the utilization of net operating losses under the provisions of the CARES Act and an income tax refund of approximately $11 million related to prior alternative minimum tax credits. See Note 1 - Organization and Summary of Significant Accounting Policies for additional detail regarding the CARES Act.


33


Also in 2020, we finalized an advance pricing agreement in a foreign jurisdiction, which resulted in a cash payment to the tax authorities of $18.5 million, and a reduction of our liability for unrecognized tax benefits and related interest and penalties of $25.3 million. As of December 31, 2020 and December 31, 2019, we have recorded a liability for unrecognized income tax benefits and related interest and penalties of $22.2 million and $52.6 million, respectively.

Restructuring and acquisition-related costs We incurred $67.2 million and $57.8 million of charges related to restructuring and acquisition-related costs in 2020 and 2019, respectively, and a significant portion of these charges were cash charges. In 2021, we expect restructuring and acquisition-related payments to be between $50 million and $65 million for the full year.

Pension and other postretirement benefits (OPEB) Our cash payments for OPEB, net of GM cost sharing, were $12.5 million in 2020 and $15.5 million in 2019. This compares to our annual postretirement cost of $10.1 million in 2020 and $11.7 million in 2019. We expect our cash payments for OPEB obligations in 2021, net of GM cost sharing, to be approximately $17 million.

Due to the availability of our pre-funded pension balances (previous contributions in excess of prior required pension contributions), we expect our regulatory pension funding requirements in 2021 to be less than $1.0 million.

Interest paid Interest paid in 2020 was $192.4 million as compared to $205.4 million in 2019.

Malvern Fire In 2020, we received $11.1 million of cash as an advance under our insurance policies associated with expenses incurred as a result of the Malvern Fire. At December 31, 2020, we have an insurance recovery receivable of $43.1 million, which is included in Prepaid expenses and other in our Consolidated Balance Sheet.

INVESTING ACTIVITIES For the year ended December 31, 2020, net cash used in investing activities was $218.4 million as compared to $306.6 million for the year ended December 31, 2019. Capital expenditures were $215.6 million in 2020 and $433.3 million in 2019. We expect our capital spending in 2021 to be approximately 4.5% of sales, which includes support for our global program launches in 2021 and 2022 within our new and incremental business backlog, as well as program capacity increases and future launches of replacement programs.

As a result of the Casting Sale completed in the fourth quarter of 2019, we received net cash proceeds of $141.2 million. Also in 2019, we completed the acquisition of Mitec for approximately $9 million, and made payments totaling approximately $9 million as part of our investment in the Liuzhou AAM joint venture.

FINANCING ACTIVITIES Net cash used in financing activities was $214.5 million in 2020, compared to net cash used in financing activities of $200.0 million in 2019. Total debt outstanding, net of debt issuance costs, was $3,455.0 million at year-end 2020 and $3,641.0 million at year-end 2019. The change in total debt outstanding, net of issuance costs, at year-end 2020, as compared to year-end 2019, was primarily due to the factors noted below.

Senior Secured Credit Facilities In 2019, Holdings, AAM, Inc., and certain subsidiaries of Holdings entered into the First Amendment to the Credit Agreement. The First Amendment, among other things, established $340 million in incremental term loan A commitments with a maturity date of July 29, 2024 (Term Loan A Facility due 2024), reduced the availability under the Revolving Credit Facility from $932 million to $925 million and 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 remained unchanged. The proceeds of $340 million were used to repay all of the outstanding loans under the prior Term Loan A Facility and a portion of the outstanding Term Loan B Facility, resulting in no additional indebtedness. This also satisfies all payment requirements under the Term Loan B Facility until maturity in 2024.

In April 2020, Holdings, AAM, Inc., and certain subsidiaries of Holdings entered into the Second Amendment to the Credit Agreement (Second Amendment). For the period from April 1, 2020 through March 31, 2022 (the Amendment Period), the Second Amendment, among other things, replaced the total net leverage ratio covenant with a new senior secured net leverage ratio covenant, reduced the minimum levels of the cash interest expense coverage ratio covenant, and modified certain covenants restricting the ability of Holdings, AAM and certain subsidiaries of Holdings to create, incur, assume or permit to exist certain additional indebtedness and liens and to make certain restricted payments, voluntary payments and distributions. The Second Amendment also increased the maximum levels of the total net leverage ratio covenant after the Amendment Period, modified the applicable
34


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, and increased the minimum adjusted London Interbank Offered Rate for Eurodollar-based loans under the Term Loan A Facility due 2024 and Revolving Credit Facility. The applicable margin for the Term Loan B Facility remains unchanged. We paid debt issuance costs of $4.6 million in 2020 related to the Second Amendment.

In December 2020, we made a voluntary prepayment of $100 million on our Term Loan B Facility and paid approximately $15 million on our Term Loan A Facility due 2024, which included approximately $13 million for the prepayment of all required payments under the Term Loan A Facility due 2024 for 2021.

In December 2019, we used a portion of the cash proceeds from the Casting Sale to make a payment on our Term Loan B Facility, which included a principal payment of $59.8 million and $0.4 million in accrued interest.

At December 31, 2020, $891.2 million was available under the Revolving Credit Facility. This availability reflects a reduction of $33.8 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 Consolidated Balance Sheet.

6.875% Notes due 2028 In June 2020, we issued $400 million in aggregate principal amount of 6.875% senior notes due 2028 (the 6.875% Notes). Proceeds from the 6.875% Notes were used primarily to fund the redemption of the remaining $350 million of 6.625% senior notes due 2022 described below and for general corporate purposes. We paid debt issuance costs of $6.4 million in 2020 related to the 6.875% Notes.

Redemption of 6.625% Notes Due 2022 In 2020, we voluntarily redeemed our 6.625% Notes due 2022, which resulted in total principal payments of $450 million, as well as the payment of $7.7 million in accrued interest and approximately $5.0 million for early redemption premiums.

Redemption of 7.75% Notes Due 2019 In May 2019, we voluntarily redeemed the remaining balance outstanding under our 7.75% Notes due 2019. This resulted in a principal payment of $100.0 million, as well as $0.3 million in accrued interest and approximately $2.2 million for an early redemption premium.

Foreign Credit Facilities We utilize local currency credit facilities to finance the operations of certain foreign subsidiaries.  At December 31, 2020, $88.8 million was outstanding under our foreign credit facilities and an additional $72.8 million was available, as compared to December 31, 2019, when $106.0 million was outstanding under our foreign credit facilities and an additional $89.1 million was available.

Treasury stock Treasury stock increased by $2.7 million in 2020 to $212.0 million as compared to $209.3 million at year-end 2019, due to the withholding and repurchase of shares of AAM stock to satisfy employee tax withholding obligations due upon the vesting of performance shares and restricted stock units.

Credit ratings To access public debt capital markets, the Company relies on credit rating agencies to assign short-term and long-term credit ratings to our securities as an indicator of credit quality for fixed income investors. A credit rating agency may change or withdraw its ratings based on its assessment of our current and future ability to meet interest and principal repayment obligations. Credit ratings may affect our cost of borrowing and/or our access to debt capital markets. The credit ratings and outlook currently assigned to our securities by the rating agencies are as follows:

Corporate Family RatingSenior Unsecured Notes RatingSenior Secured Notes RatingOutlook
Standard & Poor'sB+B-BB-Positive
Moody's Investors ServicesB1B2Ba2Negative

Dividend program We have not declared or paid any cash dividends on our common stock in 2020 or 2019.
35



Contractual obligations The following table summarizes payments due on our contractual obligations as of December 31, 2020:
Payments due by period
Total  <1yr     1-3 yrs    3-5 yrs    >5 yrs
(in millions)
Current and long-term debt$3,500.6 $32.2 $107.6 $2,060.8 $1,300.0 
Interest obligations941.9 196.8 375.7 250.0 119.4 
Finance lease obligations21.0 3.0 3.3 1.1 13.6 
Operating leases (1)149.6 27.9 41.1 23.2 57.4 
Purchase obligations (2) 90.8 81.7 9.1 — — 
Other long-term liabilities (3)571.0 59.7 110.3 113.6 287.4 
Total$5,274.9 $401.3 $647.1 $2,448.7 $1,777.8 

(1)Operating leases include all lease payments through the end of the contractual lease terms, which includes elections for repurchase options which we are reasonably certain to exercise. These commitments include machinery and equipment, commercial office and production facilities, vehicles and other assets.

(2)Purchase obligations represent our obligated purchase commitments for capital expenditures and related project expense.

(3)Other long-term liabilities primarily represent our estimated pension and other postretirement benefit obligations, net of GM cost sharing, that were actuarially determined through 2030.

Subsidiary Guarantees of Registered Debt Securities Our 6.875% Notes, 6.50% Notes, 6.25% Notes (due 2026), and 6.25% Notes (due 2025) (collectively, the Notes) are senior unsecured obligations of AAM, Inc. (Issuer); all of which are fully and unconditionally guaranteed, on a joint and several basis, by Holdings and substantially all domestic subsidiaries of AAM, Inc. and MPG Inc (Subsidiary Guarantors). Holdings has no significant assets other than its 100% ownership in AAM, Inc. and MPG Inc., and no direct subsidiaries other than AAM, Inc. and MPG Inc.

Each guarantee by Holdings and/or any of the Subsidiary Guarantors is:

a senior obligation of the relevant Subsidiary Guarantors;
the unsecured and unsubordinated obligation of the relevant Subsidiary Guarantors; and
of equal rank with all other existing and future unsubordinated and unsecured indebtedness of the relevant Subsidiary Guarantors.

Each guarantee by a Subsidiary Guarantor provides by its terms that it will be automatically, fully and unconditionally released and discharged upon:

Any sale, exchange or transfer (by merger or otherwise) of the capital stock of such Subsidiary Guarantor, or the sale or disposition of all the assets of such Subsidiary Guarantor, which sale, exchange, transfer or disposition is made in compliance with the applicable provisions of the indentures;
the exercise by the issuer of its legal defeasance option or covenant defeasance option or the discharge of the issuer’s obligations under the indentures in accordance with the terms of the indentures; or
the election of the issuer to affect such a release following the date that such guaranteed Notes have an investment grade rating from both Standard & Poor's Ratings Group, Inc, and Moody's Investors Service, Inc.


36


The following represents summarized financial information of AAM Holdings, AAM Inc. and the Subsidiary Guarantors (collectively, the Combined Entities). The information has been prepared on a combined basis and excludes any investments of AAM Holdings, AAM Inc., or the Subsidiary Guarantors in non-guarantor subsidiaries. Intercompany transactions and amounts between Combined Entities have been eliminated.

Statement of Operations Information(in millions)
Year Ended December 31, 2020Year Ended December 31, 2019
Net sales$3,649.8 $3,043.3 
Gross profit301.2 192.0 
Loss from operations(458.3)(793.3)
Net loss(521.3)(718.0)
Balance Sheet Information(in millions)
December 31, 2020December 31, 2019
Current assets$1,155.1 $699.5 
Noncurrent assets2,765.2 3,120.4 
Current liabilities1,075.9 551.9 
Noncurrent liabilities4,233.6 4,281.3 
Redeemable preferred stock— — 
Noncontrolling interest— — 

At December 31, 2020 and December 31, 2019, amounts owed by the Combined Entities to non-guarantor entities totaled approximately $660 million and $125 million, respectively, and amounts owed to the Combined Entities from non-guarantor entities totaled approximately $750 million and $630 million, respectively.

CYCLICALITY AND SEASONALITY

Our operations are cyclical because they are directly related to worldwide automotive production, which is itself cyclical and dependent on general economic conditions and other factors. Typically, our business is moderately seasonal as our major OEM customers historically have an extended shutdown of operations (normally 1-2 weeks) in conjunction with their model year changeover and an approximate one-week shutdown in December. Our major OEM customers also occasionally have longer shutdowns of operations (up to 6 weeks) for program changeovers. Accordingly, our quarterly results may reflect these trends.

LEGAL PROCEEDINGS

See Note 11 - Commitments and Contingencies in Item 8, "Financial Statements and Supplementary Data" for discussion of legal proceedings and the effect on AAM.

EFFECT OF NEW ACCOUNTING STANDARDS

See Note 1 - Organization and Summary of Significant Accounting Policies in Item 8, "Financial Statements and Supplementary Data" for discussion of new accounting standards and the effect on AAM.


37


CRITICAL ACCOUNTING ESTIMATES

In order to prepare consolidated financial statements in conformity with GAAP, we are required to make estimates and assumptions that affect the reported amounts and disclosures in our consolidated financial statements. These estimates are subject to an inherent degree of uncertainty and actual results could differ from our estimates.
Other items in our consolidated financial statements require estimation. In our judgment, they are not as critical as those disclosed below. We have discussed and reviewed our critical accounting estimates disclosure with the Audit Committee of our Board of Directors.

GOODWILL We record goodwill when the purchase price of acquired businesses exceeds the value of their identifiable net tangible and intangible assets acquired. We periodically evaluate goodwill for impairment in accordance with the accounting guidance for goodwill and other indefinite-lived intangibles that are not amortized. We review our goodwill for impairment annually during the fourth quarter. In addition, we review goodwill for impairment whenever adverse events or changes in circumstances indicate a possible impairment.

This review is performed at the reporting unit level, and involves a comparison of the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to the excess carrying value over fair value.

In performing goodwill impairment testing, we utilize a third-party valuation specialist to assist management in determining the fair value of our reporting units. Fair value of each reporting unit is estimated based on a combination of discounted cash flows and the use of pricing multiples derived from an analysis of comparable public companies multiplied against historical and/or anticipated financial metrics of each reporting unit. These calculations contain uncertainties as they require management to make assumptions including, but not limited to, market comparables, future cash flows of the reporting units, and appropriate discount and long-term growth rates. A decline in the actual cash flows of our reporting units in future periods, as compared to the projected cash flows used in our valuations, could result in the carrying value of the reporting units exceeding their respective fair values. Further, a change in market comparables, discount rate or long-term growth rate, as a result of a change in economic conditions or otherwise, could result in the carrying values of the reporting units exceeding their respective fair values.

Our business is organized into two segments: Driveline and Metal Forming. Under the goodwill guidance, we determined that each of our segments represented a reporting unit. The determination of our reporting units and impairment indicators also require us to make significant judgments. See Note 3 - Goodwill and Other Intangible Assets for further detail regarding our goodwill impairment analyses for the years 2020, 2019 and 2018.

IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets, excluding goodwill, to be held and used are reviewed for impairment whenever adverse events or changes in circumstances indicate a possible impairment. Recoverability of each “held for use” asset group affected by impairment indicators is determined by comparing the forecasted undiscounted cash flows of the operations to which the assets relate to their carrying amount. If the carrying amount of an asset group exceeds the undiscounted cash flows and is therefore not recoverable, the assets in this group are written down to their estimated fair value. We estimate fair value based on market prices, when available, or on a discounted cash flow analysis. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell. Significant judgments and estimates used by management when evaluating long-lived assets for impairment include:
 
An assessment as to whether an adverse event or circumstance has triggered the need for an impairment review;
Determination of asset groups, the primary asset within each group, and the primary asset's average estimated useful life;
Undiscounted future cash flows generated by the assets; and
Determination of fair value when an impairment is deemed to exist, which may require assumptions related to future general economic conditions, future expected production volumes, product pricing and cost estimates, working capital and capital investment requirements, discount rates and estimated liquidation values.

38


See Note 3 - Goodwill and Other Intangible Assets and Note 16 - Acquisitions and Dispositions for further detail regarding our assessment of impairment of long-lived assets.

PENSION AND OTHER POSTRETIREMENT BENEFITS In calculating our assets, liabilities and expenses related to pension and OPEB, key assumptions include the discount rate, expected long-term rates of return on plan assets, mortality projections and rates of increase in health care costs.

The discount rates used in the valuation of our U.S. pension and OPEB obligations were based on an actuarial review of a hypothetical portfolio of long-term, high quality corporate bonds matched against the expected payment stream for each of our plans. In 2020, the weighted-average discount rates determined on that basis were 2.50% for the valuation of our pension benefit obligations and 2.55% for the valuation of our OPEB obligations. The discount rate used in the valuation of our United Kingdom (U.K.) pension obligations were based on hypothetical yield curves developed from corporate bond yield information within each regional market. In 2020, the weighted-average discount rates determined on that basis were 1.55% for our U.K. plans. The expected weighted-average long-term rates of return on our plan assets were 7.25% for our U.S. plans, and 4.00% for our U.K. plans in 2020.

We developed these rates of return assumptions based on future capital market expectations for the asset classes represented within our portfolio and a review of long-term historical returns. The asset allocation for our plans was developed in consideration of the demographics of the plan participants and expected payment stream of the liability. Our investment policy allocates approximately 25% - 40% of the U.S. plans' assets to equity securities, depending on the plan, with the remainder invested in fixed income securities, hedge fund investments and cash. The rates of increase in health care costs are based on current market conditions, inflationary expectations and historical information.

All of our assumptions were developed in consultation with our actuarial service providers. While we believe that we have selected reasonable assumptions for the valuation of our pension and OPEB obligations at year-end 2020, actual trends could result in materially different valuations.

The effect on our pension plans of a 0.5% decrease in both the discount rate and expected return on assets is shown below as of December 31, 2020, our valuation date.

Expected
DiscountReturn on
RateAssets
(in millions)
Decline in funded status$(56.9)N/A
Increase in 2020 expense$0.3 $3.0 

No changes in benefit levels or in the amortization of gains or losses have been assumed.

For 2021, we assumed a weighted-average annual increase in the per-capita cost of covered health care benefits of 6.25% for OPEB. The rate is assumed to decrease gradually to 5.0% by 2026 and remain at that level thereafter. A 0.5% decrease in the discount rate for our OPEB would have decreased total expense in 2020 and increased the postretirement obligation, net of GM cost sharing, at December 31, 2020 by $0.7 million and $21.6 million, respectively. A 1.0% increase in the assumed health care trend rate would have increased total service and interest cost in 2020 and the postretirement obligation, net of GM cost sharing, at December 31, 2020 by $1.1 million and $37.0 million, respectively.

AAM and GM share in the cost of OPEB for eligible retirees proportionally based on the length of service an employee had with AAM and GM. We estimate the future cost sharing payments and present it as an asset on our Consolidated Balance Sheet. As of December 31, 2020, we estimated $250.0 million in future GM cost sharing. If, in the future, GM were unable to fulfill this financial obligation, our OPEB obligations could be different than our current estimates.


39


PRODUCT WARRANTY We record a liability and related charge to cost of goods sold for estimated warranty obligations at the dates our products are sold or when specific warranty issues are identified. Product warranties not expected to be paid within one year are recorded as a noncurrent liability on our Consolidated Balance Sheet. Our estimated warranty obligations for products sold are based on significant management estimates, with input from our warranty, sales, engineering, quality and legal departments. For products and customers with actual warranty payment experience, we estimate warranty costs principally based on past claims history. For certain products and customers, actual warranty payment experience does not exist or is not mature. In these cases, we estimate our costs based on the contractual arrangements with our customers, existing customers' warranty program terms and internal and external warranty data, which includes a determination of our responsibility for potential warranty issues or claims and estimates of repair costs. We actively study trends of our warranty claims and take action to improve product quality and minimize warranty claims. We continuously evaluate these estimates and our customers' administration of their warranty programs. We closely monitor actual warranty claim data and adjust the liability, as necessary, on a quarterly basis.

In addition to our ordinary warranty provisions with our customers, we may be responsible for certain costs associated with product recalls and field actions, which are recorded at the time our obligation is probable and can be reasonably estimated.

Our warranty accrual was $66.7 million as of December 31, 2020 and $62.0 million as of December 31, 2019. During 2020 and 2019, we made adjustments to our warranty accrual to reflect revised estimates regarding our projected future warranty obligations. Actual experience could differ from the amounts estimated requiring adjustments to these liabilities in future periods. It is possible that changes in our assumptions or future warranty issues could materially affect our financial position and results of operations.

VALUATION OF DEFERRED TAX ASSETS AND OTHER TAX LIABILITIES Because we operate in many different geographic locations, including several foreign, state and local tax jurisdictions, the evaluation of our ability to use all recognized deferred tax assets is complex. In accordance with ASC 740 - Income Taxes, we review the likelihood that we will realize the benefit of deferred tax assets and estimate whether recoverability of our deferred tax assets is “more likely than not,” based on forecasts of taxable income in the related tax jurisdictions. In determining the requirement for a valuation allowance, the historical results, projected future operating results based upon approved business plans, eligible carry forward periods, and tax planning opportunities are considered, along with other relevant positive and negative evidence. If, based upon available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded.

As of December 31, 2020, we have a valuation allowance of approximately $208.0 million related to net deferred tax assets in several foreign jurisdictions and U.S. federal, state and local jurisdictions. As of December 31, 2019 and 2018, our valuation allowance was $196.0 million and $183.3 million, respectively.
If, in the future, we generate taxable income on a sustained basis in foreign and U.S. federal, state and local jurisdictions for which we have recorded valuation allowances, our current estimate of the recoverability of our deferred tax assets could change and result in the future reversal of some or all of the valuation allowance. While we believe we have made appropriate valuations of our deferred tax assets, unforeseen changes in tax legislation, regulatory activities, audit results, operating results, financing strategies, organization structure and other related matters may result in material changes in our deferred tax asset valuation allowances or our tax liabilities.
We record uncertain tax positions on the basis of a two-step process whereby: (1) we determine whether it is "more likely than not" that the tax positions will be sustained based on the technical merits of the position: and (2) for those positions that meet the "more likely than not" recognition threshold, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties on uncertain tax positions in income tax expense (benefit).As of December 31, 2020 and 2019, we had a liability for unrecognized income tax benefits and related interest and penalties of $22.2 million and $52.6 million, respectively. Based on the status of ongoing tax audits, and the protocol of finalizing audits by the relevant tax authorities, it is not possible to estimate the impact of changes, if any, to previously recorded uncertain tax positions. We will continue to monitor the progress and conclusions of all ongoing audits and other communications with tax authorities and will adjust our estimated liability as necessary.



40



Forward-Looking Statements

In this MD&A and elsewhere in this Form 10-K (Annual 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:

significant disruptions in production, sales and/or supply as a result of public health crises, including pandemic or epidemic illness such as Novel Coronavirus (COVID-19), or otherwise;
global economic conditions;
reduced purchases of our products by General Motors Company (GM), FCA US LLC (FCA), Ford Motor Company (Ford) 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;
lower-than-anticipated market acceptance of new or existing products;
our ability to attract new customers and programs for new products;
reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM, FCA and Ford);
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 the United States-Mexico-Canada Agreement (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;
negative or unexpected tax consequences;
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 pandemics, natural disasters or otherwise;
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;
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;
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;
our ability or our customers' and suppliers' ability to successfully launch new product programs on a timely basis;
our ability to maintain satisfactory labor relations and avoid work stoppages;
our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid work stoppages;
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;
price volatility in, or reduced availability of, fuel;
our ability to protect our intellectual property and successfully defend against assertions made against us;
risks of noncompliance with environmental laws and regulations or risks of environmental issues that could result in unforeseen costs at our 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;
changes in liabilities arising from pension and other postretirement benefit obligations;
our ability to attract and retain key associates; 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 any or all of the foregoing factors may be exacerbated by COVID-19. Further, 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.

41


Item 7A. Quantitative and Qualitative Disclosures about Market Risk

MARKET RISK

Our business and financial results are affected by fluctuations in global financial markets, including currency exchange rates and interest rates. Our hedging policy has been developed to manage these risks to an acceptable level based on management's judgment of the appropriate trade-off between risk, opportunity and cost. We do not hold financial instruments for trading or speculative purposes.

CURRENCY EXCHANGE RISK From time to time, we use foreign currency forward contracts to reduce the effects of fluctuations in certain foreign currencies. At December 31, 2020 and December 31, 2019, we had currency forward contracts with a notional amount of $178.2 million and $180.1 million outstanding, respectively.  The potential decrease in fair value of foreign exchange contracts, assuming a 10% adverse change in the foreign currency exchange rates, would be approximately $16.2 million at December 31, 2020 and was approximately $16.5 million at December 31, 2019.

In 2019, we entered into a fixed-to-fixed cross-currency swap to reduce the variability of functional currency equivalent cash flows associated with changes in exchange rates on certain Euro-based intercompany loans. In the first quarter of 2020, we discontinued this cross-currency swap, which was in an asset position of $9.8 million on the date it was discontinued. Also in the first quarter of 2020, we entered into a new fixed-to-fixed cross-currency swap to reduce the variability of functional currency equivalent cash flows associated with changes in exchange rates on certain Euro-based intercompany loans. At December 31, 2020 and December 31, 2019 the notional amount of the fixed-to-fixed cross-currency swap was $244.2 million and $224.2 million, respectively. The potential decrease in fair value of the fixed-to-fixed cross-currency swap, assuming a 10% adverse change in foreign currency exchange rates, would be approximately $24.4 million at December 31, 2020 and was approximately $22.4 million at December 31, 2019.

Future business operations and opportunities, including the expansion of our business outside North America, may further increase the risk that cash flows resulting from these global operations may be adversely affected by changes in currency exchange rates. If and when appropriate, we intend to manage these risks by creating natural hedges in the structure of our global operations, utilizing local currency funding of these expansions and various types of foreign exchange contracts.

INTEREST RATE RISK We are exposed to variable interest rates on certain credit facilities. From time to time, we have used interest rate hedging to reduce the effects of fluctuations in market interest rates. In 2019, we entered into a variable-to-fixed interest rate swap to reduce the variability of cash flows associated with interest payments on our variable rate debt. As of December 31, 2020, we have the following notional amounts hedged in relation to our variable-to-fixed interest rate swap: $900.0 million through May 2021, $750.0 million through May 2022, $600.0 million through May 2023 and $500.0 million through May 2024.

The pre-tax earnings and cash flow impact of a one-percentage-point increase in interest rates (approximately 17% of our weighted-average interest rate at December 31, 2020) on our long-term debt outstanding at December 31, 2020 would be approximately $6.0 million and was approximately $6.3 million at December 31, 2019, on an annualized basis.



42

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
Item 8.    Financial Statements and Supplementary Data

Consolidated Statements of Operations
Year Ended December 31,
202020192018
(in millions, except per share data)
Net sales$4,710.8 $6,530.9 $7,270.4 
Cost of goods sold4,128.1 5,628.3 6,130.0 
Gross profit582.7 902.6 1,140.4 
Selling, general and administrative expenses313.9 364.7 385.7 
Amortization of intangible assets86.6 95.4 99.4 
Impairment charges (Note 3 and Note 16)510.0 665.0 485.5 
Restructuring and acquisition-related costs67.2 57.8 78.9 
Loss (gain) on sale of business (Note 16)1.0 21.3 (15.5)
Operating income (loss)(396.0)(301.6)106.4 
Interest expense(212.3)(217.3)(216.3)
Interest income11.6 5.8 2.0 
Other income (expense)
Debt refinancing and redemption costs(7.9)(8.4)(19.4)
Gain on bargain purchase of business 10.8  
Gain on settlement of capital lease  15.6 
Pension settlement charges(0.5)(9.8) 
Other expense, net(5.2)(12.5)(2.2)
Loss before income taxes(610.3)(533.0)(113.9)
Income tax benefit(49.2)(48.9)(57.1)
Net loss$(561.1)$(484.1)$(56.8)
Net income attributable to noncontrolling interests(0.2)(0.4)(0.7)
Net loss attributable to AAM$(561.3)$(484.5)$(57.5)
Basic loss per share$(4.96)$(4.31)$(0.51)
Diluted loss per share