Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 15, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Axalta Coating Systems Ltd. | ||
Trading Symbol | AXTA | ||
Entity Central Index Key | 1,616,862 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 245,076,781 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7,729.3 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 4,352.9 | $ 4,068.8 | $ 4,083.9 |
Other revenue | 24.1 | 23.9 | 26.1 |
Total revenue | 4,377 | 4,092.7 | 4,110 |
Cost of goods sold | 2,779.6 | 2,527.6 | 2,597.3 |
Selling, general and administrative expenses | 997.7 | 962.5 | 914.8 |
Venezuela asset impairment and deconsolidation charge | 70.9 | 57.9 | 0 |
Research and development expenses | 65.3 | 57.7 | 51.6 |
Amortization of acquired intangibles | 101.2 | 83.4 | 80.7 |
Income from operations | 362.3 | 403.6 | 465.6 |
Interest expense, net | 147 | 178.2 | 196.5 |
Other expense, net | 25.7 | 142.7 | 111.2 |
Income before income taxes | 189.6 | 82.7 | 157.9 |
Provision for income taxes | 141.9 | 38.1 | 62.1 |
Net income | 47.7 | 44.6 | 95.8 |
Less: Net income attributable to noncontrolling interests | 11 | 5.8 | 4.2 |
Net income attributable to controlling interests | $ 36.7 | $ 38.8 | $ 91.6 |
Basic net income per share (in dollars per share) | $ 0.15 | $ 0.16 | $ 0.39 |
Diluted net income per share (in dollars per share) | $ 0.15 | $ 0.16 | $ 0.38 |
Basic weighted average shares outstanding (in dollars per share) | 240.4 | 238.1 | 233.8 |
Diluted weighted average shares outstanding (in dollars per share) | 246.1 | 244.4 | 239.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 47.7 | $ 44.6 | $ 95.8 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | 85.6 | (59.5) | (164.3) |
Unrealized gain on securities | 0.4 | 0.3 | 0.3 |
Unrealized gain (loss) on derivatives | 0.9 | 2 | (5.5) |
Unrealized gain (loss) on pension and other benefit plan obligations | 31.3 | (28.9) | (2.2) |
Other comprehensive income (loss), before tax | 118.2 | (86.1) | (171.7) |
Income tax provision (benefit) related to items of other comprehensive income | 6.6 | (4.9) | (2.1) |
Other comprehensive income (loss), net of tax | 111.6 | (81.2) | (169.6) |
Comprehensive income (loss) | 159.3 | (36.6) | (73.8) |
Less: Comprehensive income attributable to noncontrolling interests | 13.2 | 5.7 | 0.6 |
Comprehensive income (loss) attributable to controlling interests | $ 146.1 | $ (42.3) | $ (74.4) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 769.8 | $ 535.4 |
Restricted cash | 3.1 | 2.7 |
Accounts and notes receivable, net | 870.2 | 801.9 |
Inventories | 608.6 | 529.7 |
Prepaid expenses and other | 63.9 | 50.3 |
Total current assets | 2,315.6 | 1,920 |
Property, plant and equipment, net | 1,388.6 | 1,315.7 |
Goodwill | 1,271.2 | 964.1 |
Identifiable intangibles, net | 1,428.2 | 1,130.3 |
Other assets | 428.6 | 536.1 |
Total assets | 6,832.2 | 5,866.2 |
Current liabilities: | ||
Accounts payable | 554.9 | 474.2 |
Current portion of borrowings | 37.7 | 27.9 |
Other accrued liabilities | 489.6 | 440 |
Total current liabilities | 1,082.2 | 942.1 |
Long-term borrowings | 3,877.9 | 3,236 |
Accrued pensions | 279.1 | 249.1 |
Deferred income taxes | 152.9 | 160.2 |
Other liabilities | 32.3 | 32.2 |
Total liabilities | 5,424.4 | 4,619.6 |
Commitments and contingent liabilities (Note 8) | ||
Shareholders’ equity | ||
Common shares, $1.00 par, 1,000.0 shares authorized, 243.9 and 240.5 shares issued and outstanding at December 31, 2017 and 2016, respectively | 242.4 | 239.3 |
Capital in excess of par | 1,354.5 | 1,294.3 |
Accumulated deficit | (21.4) | (58.1) |
Treasury shares | (58.4) | 0 |
Accumulated other comprehensive loss | (241) | (350.4) |
Total Axalta shareholders’ equity | 1,276.1 | 1,125.1 |
Noncontrolling interests | 131.7 | 121.5 |
Total shareholders’ equity | 1,407.8 | 1,246.6 |
Total liabilities and shareholders’ equity | $ 6,832.2 | $ 5,866.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized | 1,000 | 1,000 |
Common shares, shares issued | 243.9 | 240.5 |
Common shares, shares outstanding | 243.9 | 240.5 |
Treasury shares | 2 | 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss | Noncontrolling Interest [Member] |
Total stockholders’ equity, beginning balance at Dec. 31, 2014 | $ 1,106.1 | $ 229.8 | $ 1,144.7 | $ 0 | $ (232.4) | $ (103.3) | $ 67.3 |
Comprehensive Income (Loss) | |||||||
Net income | 95.8 | 91.6 | 4.2 | ||||
Net unrealized gain (loss) on securities, net of tax | 0.3 | 0.3 | |||||
Net realized and unrealized gain (loss) on derivatives, net of tax | (3.4) | (3.4) | |||||
Long-term employee benefit plans, net of tax | (2.2) | (2.2) | |||||
Foreign currency translation, net of tax of $0.0 million | (164.3) | (160.7) | (3.6) | ||||
Comprehensive income (loss) | (73.8) | 91.6 | (166) | 0.6 | |||
Recognition of stock-based compensation | 30.2 | 30.2 | |||||
Exercises of stock options and associated tax benefits | 71.1 | 7.2 | 63.9 | ||||
Noncontrolling interests of acquired subsidiaries | 4.3 | 4.3 | |||||
Dividends declared to noncontrolling interests | (4.7) | (4.7) | |||||
Total stockholders’ equity, ending balance at Dec. 31, 2015 | 1,133.2 | 237 | 1,238.8 | 0 | (140.8) | (269.3) | 67.5 |
Comprehensive Income (Loss) | |||||||
Net income | 44.6 | 38.8 | 5.8 | ||||
Net unrealized gain (loss) on securities, net of tax | 0.3 | 0.3 | |||||
Net realized and unrealized gain (loss) on derivatives, net of tax | 1.2 | 1.2 | |||||
Long-term employee benefit plans, net of tax | (23.2) | (23.2) | |||||
Foreign currency translation, net of tax of $0.0 million | (59.5) | (59.4) | (0.1) | ||||
Comprehensive income (loss) | (36.6) | 38.8 | (81.1) | 5.7 | |||
Cumulative effect of an accounting change | 43.9 | 43.9 | |||||
Recognition of stock-based compensation | 41.1 | 41.1 | |||||
Exercises of stock options and associated tax benefits | 16.7 | 2.3 | 14.4 | ||||
Noncontrolling interests of acquired subsidiaries | 51.3 | 51.3 | |||||
Dividends declared to noncontrolling interests | (3) | (3) | |||||
Total stockholders’ equity, ending balance at Dec. 31, 2016 | 1,246.6 | 239.3 | 1,294.3 | 0 | (58.1) | (350.4) | 121.5 |
Comprehensive Income (Loss) | |||||||
Net income | 47.7 | 36.7 | 11 | ||||
Net unrealized gain (loss) on securities, net of tax | 0.4 | 0.4 | |||||
Net realized and unrealized gain (loss) on derivatives, net of tax | 0.4 | 0.4 | |||||
Long-term employee benefit plans, net of tax | 25.2 | 25.2 | |||||
Foreign currency translation, net of tax of $0.0 million | 85.6 | 83.4 | 2.2 | ||||
Comprehensive income (loss) | 159.3 | 36.7 | 109.4 | 13.2 | |||
Recognition of stock-based compensation | 38.5 | 38.5 | |||||
Exercises of stock options and associated tax benefits | 24.8 | 3.1 | 21.7 | ||||
Treasury share repurchase | (58.4) | (58.4) | |||||
Dividends declared to noncontrolling interests | (3) | (3) | |||||
Total stockholders’ equity, ending balance at Dec. 31, 2017 | $ 1,407.8 | $ 242.4 | $ 1,354.5 | $ (58.4) | $ (21.4) | $ (241) | $ 131.7 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Available for sale securities, tax | $ 0 | $ 0 | $ 0 |
Derivatives qualifying as hedges, tax | 0.5 | 0.8 | 2.1 |
Pension, tax | 6.1 | 5.7 | 0 |
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Operating activities: | |||
Net income | $ 47.7 | $ 44.6 | $ 95.8 |
Adjustment to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 347.5 | 322.1 | 307.7 |
Amortization of financing costs and original issue discount | 8 | 17.8 | 20.6 |
Debt extinguishment and refinancing related costs | 13.4 | 97.6 | 2.5 |
Deferred income taxes | 91.7 | (15.9) | (6.2) |
Realized and unrealized foreign exchange (gains) losses, net | (3.6) | 35.5 | 93.7 |
Stock-based compensation | 38.5 | 41.1 | 30.2 |
Asset impairments | 7.6 | 68.4 | 30.6 |
Venezuela deconsolidation charge | 70.9 | 0 | 0 |
Other non-cash, net | 4.4 | (1.9) | 12.5 |
Changes in operating assets and liabilities: | |||
Trade accounts and notes receivable | (15.2) | (67.8) | (61.1) |
Inventories | (19.9) | (1.7) | (35.2) |
Prepaid expenses and other | (84.9) | (64.5) | (65.6) |
Accounts payable | 39.8 | 32.3 | (6.7) |
Other accrued liabilities | 6.7 | 58.7 | 13.4 |
Other liabilities | (12.6) | (7) | (22.4) |
Cash provided by operating activities | 540 | 559.3 | 409.8 |
Investing activities: | |||
Business acquisitions (net of cash acquired) | (564.4) | (114.8) | (29.6) |
Purchase of property, plant and equipment | (125) | (136.2) | (138.1) |
Reduction of cash due to Venezuela deconsolidation | (4.3) | 0 | 0 |
Other investing activities, net | 4.1 | (6) | 1.5 |
Cash used for investing activities | (689.6) | (257) | (166.2) |
Financing activities: | |||
Proceeds from short-term borrowings | 0 | 0.2 | 2 |
Proceeds from long-term borrowings | 483.6 | 1,604.3 | 0 |
Payments on short-term borrowings | (14.1) | (8.6) | (16.9) |
Payments on long-term borrowings | (50) | (1,755.7) | (127.3) |
Financing-related costs | (10.4) | (86.3) | 0 |
Dividends paid to noncontrolling interests | (3) | (3) | (4.7) |
Purchase of treasury stock | (58.4) | 0 | 0 |
Proceeds from option exercises | 24.8 | 16.7 | 62.4 |
Deferred acquisition-related consideration | (5.2) | 0 | 0 |
Other financing activities | 0 | (0.2) | (0.2) |
Cash provided by (used for) financing activities | 367.3 | (232.6) | (84.7) |
Increase in cash and cash equivalents | 217.7 | 69.7 | 158.9 |
Effect of exchange rate changes on cash | 17.1 | (19.3) | (58) |
Cash at beginning of period | 538.1 | 487.7 | 386.8 |
Cash at end of period | 772.9 | 538.1 | 487.7 |
Cash and cash equivalents | 769.8 | 535.4 | 485 |
Restricted cash | 3.1 | 2.7 | 2.7 |
Cash paid during the year for: | |||
Interest, net of amounts capitalized | 130.1 | 169.4 | 172.5 |
Income taxes, net of refunds | 61.7 | 39.2 | 52.4 |
Non-cash investing activities: | |||
Accrued capital expenditures | $ 30.2 | $ 28.7 | $ 33.8 |
General and Description of the
General and Description of the Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General and Description of the Business | GENERAL AND DESCRIPTION OF THE BUSINESS Axalta Coating Systems Ltd. ("Axalta," the "Company," "we," "our" and "us"), a Bermuda exempted company limited by shares formed at the direction of The Carlyle Group L.P. ("Carlyle"), was incorporated on August 24, 2012 for the purpose of consummating the acquisition of DuPont Performance Coatings ("DPC"), a business formerly owned by E. I. du Pont de Nemours and Company ("DuPont"), including certain assets of DPC and all of the capital stock and other equity interests of certain entities engaged in the DPC business (the "Acquisition"). Axalta, through its wholly-owned indirect subsidiaries, acquired DPC on February 1, 2013. Axalta is a holding company with no business operations or assets other than primarily cash and cash equivalents and 100% of the ownership interest of Axalta Coating Systems Luxembourg Top S.à r.l. (formerly Axalta Coating Systems Dutch Co. Top Coöperatief U.A.), which itself is a holding company with no operations or assets other than 100% of the capital stock of Axalta Coating Systems Dutch Holdings A B.V. ("Dutch A B.V."), which itself is a holding company with no operations or assets other than 100% of the capital stock of Axalta Coating Systems Dutch Holdings B B.V. ("Dutch B B.V."). Dutch B B.V., together with its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings, Inc. ("Axalta US Holdings"), are co-borrowers under the Senior Secured Credit Facilities and the Revolving Credit Facility (each as defined below). Dutch B B.V., is also an issuer of and a guarantor of the New Senior Notes and Axalta Coating Systems, LLC is an issuer of the 2024 Senior Notes. Our global operations are conducted by indirect wholly-owned subsidiaries and indirect majority-owned subsidiaries. We are a leading global manufacturer, marketer and distributor of high performance coatings products primarily serving the transportation industry. We have an approximately 150-year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technology and customer service. The Carlyle Offerings In November 2014, we priced our initial public offering ("IPO") in which certain selling shareholders affiliated with Carlyle sold 57.5 million common shares at a price of $19.50 per share. Subsequent to the IPO, Carlyle completed six secondary offerings for an aggregate of 170.3 million common shares from April 2015 through August 2016 with offering prices ranging from $27.93 to $29.75 ("Carlyle Offerings"). We did no t receive any proceeds from the sale of common shares in any of the Carlyle Offerings. Effective with the August 2016 Carlyle Offering, Carlyle no longer has any beneficial interest in Axalta's common shares, other than de minimis amounts held or owned in the ordinary course of business purchased subsequent to the Acquisition. |
Basis of Presentation of the Co
Basis of Presentation of the Consolidated and Combined Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation of the Consolidated and Combined Financial Statements | BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS The accompanying consolidated balance sheets of Axalta at December 31, 2017 and 2016 and the related consolidated statements of operations, consolidated statements of comprehensive income (loss), consolidated statements of cash flows and consolidated statements of changes in shareholders' equity for the years ended December 31, 2017 , 2016 and 2015 included herein are audited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position of Axalta. All intercompany balances and transactions have been eliminated. The annual audited consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material. Venezuela Deconsolidation During the year ended December 31, 2017 , we deconsolidated our Venezuelan subsidiary from our consolidated financial statements and began accounting for our investment in our 100% owned Venezuelan subsidiary using the cost method of accounting. See Note 25 for additional information. Correction of Immaterial Errors to Prior Period Financial Statements During the year ended December 31, 2017 , the Company identified and corrected errors that affected previously-issued consolidated financial statements. Based on an analysis of Accounting Standards Codification (“ASC”) 250 - Accounting Changes and Error Corrections (“ASC 250”), Staff Accounting Bulletin 99 - Materiality (“SAB 99”) and Staff Accounting Bulletin 108 - Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company determined that these corrections were immaterial to the previously-issued financial statements. However, given the significance of the cumulative adjustments on the financial results, we have revised our historical presentation of certain amounts in the consolidated financial statements which are described further below. Revenue Corrections The Company recognizes revenue from the sale of products to its customers when risk of loss and ownership of the product transfers to the customer. Ownership transfers either upon shipment of the product or when the product is delivered. In regard to our refinish end-market, risk of loss passes upon the sale to its distribution customers. Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions can be given to our distribution customers and certain collision repair body shops. The Company previously recorded these additional rebates and pricing concessions at the time of sale from the distributor to the collision repair body shops. The Company has concluded those rebates and pricing concessions should have been estimated and recorded as a reduction to net sales upon the sale to our distribution customers. The Company concluded that its accounting policy for the sale to distributors is appropriate as the sales price is fixed or determinable at the time ownership transfers to these distributors, based on the Company’s ability to make a reasonable estimate of future certain pricing or rebates concessions at the time of shipment. The Company has corrected the errors in the timing of revenue recognition by estimating those additional rebates and pricing concessions at the time of sale to distribution customers and reducing net sales by $4.7 million ( $3.0 million after tax) and $3.3 million ( $2.1 million after tax) for the years ended December 31, 2016 and 2015, respectively. Diluted earnings per share was reduced by $0.01 for each of these years. The after-tax impacts noted above had the equivalent impacts on our consolidated statements of comprehensive income (loss) for the respective periods. The cumulative impact on the consolidated balance sheet at December 31, 2016 resulted in increases of $22.4 million , $3.1 million , $8.3 million and $11.0 million to other accrued liabilities, goodwill, other assets and accumulated deficit, respectively, as a result of these prior period corrections. Amounts had no impact on the Company’s total cash flows from operations as reported within the historical consolidated statements of cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of Axalta and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. The estimates and assumptions include, but are not limited to, receivable and inventory valuations, fixed asset valuations, valuations of goodwill and identifiable intangible assets, including analysis of impairment, valuations of long-term employee benefit obligations, income taxes, environmental matters, litigation, stock-based compensation, restructuring, and allocations of costs. Our estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. Actual results could differ materially from those estimates. Accounting for Business Combinations We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets, including separately identifiable intangible assets and assumed liabilities at their acquisition date fair values. The method records any excess purchase price over the fair value of acquired net assets as goodwill. Included in the determination of the purchase price is the fair value of contingent consideration, if applicable, based on the terms and applicable targets described within the acquisition agreements (e.g., projected revenues or EBITDA). Subsequent to the acquisition date, the fair value of the liability, if determined to be payable in cash, is revalued at each balance sheet date with adjustments recorded within earnings. The determination of the fair value of assets acquired, liabilities assumed, and noncontrolling interests involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the closing date of the acquisition. When necessary, we consult with external advisors to help determine fair value. For non-observable market values determined using Level 3 assumptions, we determine fair value using acceptable valuation principles, including most commonly the excess earnings method for customer relationships, relief from royalty method for technology and trademarks, cost method for inventory and a combination of cost and market methods for property, plant and equipment, as applicable. We included the results of operations from the acquisition date in the financial statements for all businesses acquired. Principles of Consolidation The consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company’s ownership is less than 100% , the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which Axalta, directly or indirectly, owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, Axalta’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statements of operations and our share of these companies’ stockholders’ equity is included in the accompanying consolidated balance sheet. We eliminated all intercompany accounts and transactions in the preparation of the accompanying consolidated financial statements. Revenue Recognition We recognize revenue after completing the earnings process. We recognize revenue from the sale of products to our customers when risk of loss and ownership of the product transfers to the customer. Ownership transfers either upon shipment of the product or when the product is delivered. For a majority of our product sales, risk or loss and ownership transfers at the shipping point and delivery is considered complete. For certain OEM customers, revenue is recognized at the time the customer applies our coatings to its vehicles, as this represents the point in time that risk of loss has been transferred and delivery is considered complete. In regard to our refinish end-market, risk of loss passes upon the sale to our distribution customers. Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions may be given to our distribution customers and certain collision repair body shops, which we estimate and record as a reduction to net sales upon the sale to our distribution customers. We accrue for sales returns and other allowances based on our historical experience. We incur up-front costs in order to obtain contracts with certain customers, referred to as Business Incentive Plan assets ("BIPs"). We capitalized these up-front costs as a component of other assets and amortize the related amounts over the estimated life of the contract as a reduction of net sales. The Company receives volume commitments and/or sole supplier status from its customers over the life of the contractual arrangements, which approximates a five -year weighted average useful life. The termination clauses in these contractual arrangements include standard clawback provisions that enable the Company to collect monetary damages in the event of a customer’s failure to meet its commitments under the relevant contract. As of December 31, 2017 and 2016, $173.0 million and $170.8 million , respectively, were capitalized within other assets on the consolidated balance sheets. For the years ended December 31, 2017 , 2016 and 2015 , $65.0 million , $53.5 million and $50.6 million , respectively, were amortized and reflected as reductions of net sales in the consolidated statements of operations. We include the amounts billed to customers for shipping and handling fees in net sales and costs incurred for the delivery of goods as cost of goods sold in the statement of operations. Recognition for licensing and royalty income occurs in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured. Cash and Cash Equivalents Cash equivalents represent highly liquid investments considered readily convertible to known amounts of cash within three months or less from time of purchase. They are carried at cost plus accrued interest, which approximates fair value because of the short-term maturity of these instruments. Cash balances may exceed government insured limits in certain jurisdictions. Fair Value Measurements GAAP defines a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following valuation techniques are used to measure fair value for assets and liabilities: Level 1—Quoted market prices in active markets for identical assets or liabilities; Level 2—Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and Level 3—Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability. Derivatives and Hedging The Company from time to time utilizes derivatives to manage exposures to currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or accumulated other comprehensive income (loss) ("AOCI"), depending on the use of the derivative and whether it qualifies for hedge accounting treatment and is designated as such. Gains and losses on derivatives that qualify and are designated as cash flow hedging instruments are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income. Gains and losses on derivatives qualifying and designated as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income. Cash flows from derivatives are recognized in the consolidated statements of cash flows in a manner consistent with the underlying transactions. Receivables and Allowance for Doubtful Accounts Receivables are recognized net of an allowance for doubtful accounts receivable. The allowance for doubtful accounts receivable reflects the best estimate of losses inherent in the accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written down or off when a portion or all of such account receivable is determined to be uncollectible. Inventories Inventories are valued at the lower of cost or net realizable value with cost being determined on the weighted average cost method. Elements of cost in inventories include: • raw materials, • direct labor, and • manufacturing and indirect overhead. Stores and supplies are valued at the lower of cost or net realizable value; cost is generally determined by the weighted average cost method. Inventories deemed to have costs greater than their respective market values are reduced to net realizable value with a loss recorded in income in the period recognized. Property, Plant and Equipment Property, plant and equipment acquired in an acquisition are recorded at fair value as of the acquisition date and are depreciated over the estimated useful life using the straight-line method. Subsequent additions to property, plant and equipment, including the fair value of any asset retirement obligations upon initial recognition of the liability, are recorded at cost and are depreciated over the estimated useful life using the straight-line method. See Note 16 for a range of estimated useful lives used for each property, plant and equipment class. Software included in property, plant and equipment represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance and training costs are expensed in the period in which they are incurred. Goodwill and Other Identifiable Intangible Assets Goodwill represents the excess of purchase price over the fair values of underlying net assets acquired in an acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis as of October 1; however, these tests are performed more frequently if events or changes in circumstances indicate that the asset may be impaired. The fair value methodology is based on prices of similar assets or other valuation methodologies including discounted cash flow techniques. When testing goodwill and indefinite-lived intangible assets for impairment, we first have an option to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50% ) that an impairment exists. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. In the event the qualitative assessment indicates that an impairment is more likely than not, we would be required to perform a quantitative impairment test, otherwise no further analysis is required. We may elect to bypass the qualitative assessment for some or all of our reporting units and indefinite-lived intangible assets and perform a two-step quantitative test. Under the quantitative goodwill impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, then individual assets (including identifiable intangible assets) and liabilities of the reporting unit are estimated at fair value. The excess of the estimated fair value of the reporting unit over the estimated fair value of its net assets would establish the implied value of goodwill. The excess of the recorded amount of goodwill over the implied value is then charged to earnings as an impairment loss. Definite-lived intangible assets, such as technology, trademarks, customer relationships and non-compete agreements are amortized over their estimated useful lives, generally for periods ranging from two to 20 years . The reasonableness of the useful lives of these assets is regularly evaluated. Once these assets are fully amortized, they are removed from the balance sheet. We evaluate these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable. Impairment of Long-Lived Assets The carrying value of long-lived assets to be held and used is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the asset are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The fair value methodology used is an estimate of fair market value and is based on prices of similar assets or other valuation methodologies including present value techniques. Long-lived assets to be disposed of other than by sale are classified as held for use until their disposal. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived assets classified as held for sale. Research and Development Research and development costs incurred in the normal course of business consist primarily of employee-related costs and are expensed as incurred. In process research and development projects acquired in a business combination are recorded as intangible assets at their fair value as of the acquisition date, using Level 3 assumptions. Subsequent costs related to acquired in process research and development projects are expensed as incurred. Research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. These indefinite-lived intangible assets are tested for impairment consistent with the impairment testing performed on other indefinite-lived intangible assets discussed above. Upon completion of the research and development process, the carrying value of acquired in process research and development projects is reclassified as a finite-lived asset and is amortized over its useful life. Environmental Liabilities and Expenditures Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued environmental liabilities are not discounted. Claims for recovery from third parties, if any, are reflected separately as an asset. We record recoveries at the earlier of when the gain is probable and reasonably estimable, or realized. For the years ending December 31, 2017 , 2016 and 2015 , we have not recognized income associated with recoveries from third parties. Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized and depreciated. Litigation We accrue for liabilities related to litigation matters when available information indicates that the liability is probable and the amount can be reasonably estimated. Legal costs such as outside counsel fees and expenses are charged to expense in the period incurred. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for operating losses, interest and tax credit carry forwards. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income in the period that includes the enactment date. Where we do not intend to indefinitely reinvest earnings of our subsidiaries, we provide for income taxes and withholding taxes, where applicable, on unremitted earnings. We do not provide for income taxes on unremitted earnings of our subsidiaries that are intended to be indefinitely reinvested. We recognize the benefit of an income tax position only if it is "more likely than not" that the tax position will be sustained. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized. Additionally, we recognize interest and penalties accrued related to unrecognized tax benefits as a component of provision for income taxes. The current portion of unrecognized tax benefits is included in "Income taxes payable" and the long-term portion is included in the long-term income tax payable in the accompanying consolidated balance sheets. Foreign Currency Translation The reporting currency is the U.S. dollar. In most cases, our non-U.S. based subsidiaries use their local currency as the functional currency for their respective business operations. Assets and liabilities of these operations are translated into U.S. dollars at end-of-period exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Resulting cumulative translation adjustments are recorded as a component of shareholders’ equity in the accompanying consolidated balance sheet in AOCI. Gains and losses from transactions denominated in currencies other than the functional currencies are included in the consolidated statement of operations in other expense, net. Employee Benefits Defined benefit plans specify an amount of pension benefit that an employee will receive upon retirement, usually dependent on factors such as age, years of service and compensation. The net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of the future benefits that employees have earned in return for their service in the current and prior periods. These benefits are then discounted to determine the present value of the obligations and are then adjusted for the impact of any unamortized prior service costs. The discount rate used is based upon market indicators in the region (generally, the yield on bonds that are denominated in the currency in which the benefits will be paid) and that have maturity dates approximating the terms of the obligations. The calculations are performed by qualified actuaries using the projected unit credit method. Stock-Based Compensation Our stock-based compensation is comprised of Axalta stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units and are measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a graded-vesting attribution basis over the requisite service period. Compensation expense is recorded net of forfeitures, which we have elected to record in the period they occur. Earnings per Common Share Basic earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities; anti-dilutive securities are excluded from the calculation. These potentially dilutive securities are calculated under the treasury stock method and consist of stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units. |
Recent Accounting Guidance
Recent Accounting Guidance | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Guidance | RECENT ACCOUNTING GUIDANCE Accounting Guidance Issued But Not Yet Adopted In March 2017, the FASB issued Accounting Standard Update ("ASU") 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The impacts to the accompanying consolidated statement of operations for the years ended December 31, 2017 and 2016, as will be presented in our Annual Report on Form 10-K for the year ended December 31, 2018, will result in reclassifications from cost of goods sold and selling, general and administrative expense to other expense, net. These reclassifications will not have a material impact to the individual line items on the consolidated statement of operations for the impacted periods. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test requiring an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified in our reporting units. In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business", which sets forth the accounting guidance that assists in the determination of whether a set of transferred assets and activities is a business. This new guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business; whereas, if the threshold is not met, the entity evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue guidance. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. This standard is expected to have a prospective impact on our assessment of future acquisitions to determine whether the acquired entity requires accounting as an acquired asset (or group of similar identifiable assets) or as a business combination. In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize the assets and liabilities arising from all leases (both finance and operating) on the balance sheet. In addition to this main provision, this standard included a number of additional changes to lease accounting. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows. Total assets and total liabilities will increase in the period of adoption. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. Subsequent updates applicable to the revenue recognition standard, including ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing", provide narrow scope improvements and clarifications. This standard was initially intended to be effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date", which delayed the previous effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We have elected to implement the standard using the modified retrospective method whereby, for contracts which we conclude our performance obligation has been met under the terms of this standard as of the date of initial application, January 1, 2018, we will record a one-time catch up of the net earnings impact to retained earnings on our consolidated balance sheet and consolidated statement of changes in shareholders’ equity of approximately $12 million . The impacts to be reflected at this date represent the net income attributable to certain arrangements primarily within our Transportation Coatings segment for which we determine our performance obligation has been satisfied at the point effective control over inventory has transferred to the customer upon delivery under this standard, as compared to consumption under current GAAP. The election to implement this standard using the modified retrospective method will also require our future disclosures to include the amount by which each financial statement line item is affected as compared with these line items reported under current GAAP to ensure comparability with historical financial statements. We have reviewed our sales contracts and practices as compared to the new guidance and have concluded on the population of affected contracts and implementation plan, as well as our assessment of procedural and policy requirements related to the provisions of this standard. Additionally, under the provisions of this standard, certain costs currently reported in selling, general and administrative costs will be reported within cost of goods sold on the consolidated statements of operations, as they represent costs incurred in satisfaction of performance obligations. Such items will not impact pre-tax operating results. We are currently evaluating the expanded disclosures necessary to be in compliance with this standard, including expanded disclosures regarding significant judgments and estimates involved in the determination of the transaction price, variable consideration and timing of satisfaction of performance obligations. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Acquisition of Industrial Wood Business On June 1, 2017, the Company completed its acquisition from The Valspar Corporation ("Valspar") of certain assets constituting its North American Industrial Wood Coatings business (the "Industrial Wood" business), for a purchase price of $420.0 million , subject to working capital adjustments. Axalta and Valspar finalized the working capital adjustments to the purchase price which resulted in an increase of $10.3 million to $430.3 million (the "Industrial Wood Acquisition"). The Industrial Wood Acquisition was funded through the refinancing of our Dollar Term Loans discussed further at Note 20. The Industrial Wood business is one of the leading providers of coatings for OEM and aftermarket industrial wood markets, including building products, cabinets, flooring and furniture, in North America. The Industrial Wood Acquisition was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date. At December 31, 2017 , we have not finalized the purchase accounting related to the Industrial Wood Acquisition and these amounts represent preliminary values. The allocation of the purchase price may be modified up to one year from the date of the acquisition as more information is obtained about the fair value of assets acquired and liabilities assumed. After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.3 million , which was comprised of the following: June 1, 2017 (As Initially Reported) Measurement Period Adjustments June 1, 2017 (As Adjusted) Accounts and notes receivable—trade $ 23.3 $ — $ 23.3 Inventories 24.9 (0.2 ) 24.7 Prepaid expenses and other 0.2 — 0.2 Property, plant and equipment 23.0 0.1 23.1 Identifiable intangibles 254.2 4.9 259.1 Accounts payable (22.4 ) 0.2 (22.2 ) Other accrued liabilities (5.1 ) 0.4 (4.7 ) Net assets acquired before goodwill on acquisition 298.1 5.4 303.5 Goodwill on acquisition 132.6 (5.8 ) 126.8 Net assets acquired $ 430.7 $ (0.4 ) $ 430.3 Goodwill was recognized as the excess of the purchase price over the net identifiable assets recognized. The goodwill is primarily attributed to our assembled workforce and the anticipated future economic benefits and is recorded within our industrial end-market in our Performance Coatings segment. The goodwill recognized at December 31, 2017 that is expected to be deductible for income tax purposes is $126.8 million . The Company incurred and expensed acquisition-related transaction costs on the Industrial Wood Acquisition of $5.3 million , included within selling, general and administrative expense on the consolidated statements of operations for the year ended December 31, 2017 . The fair value associated with identifiable intangible assets was $259.1 million , comprised of $34.6 million in technology (inclusive of in-process research and development), $8.0 million in trademarks, $203.0 million in customer relationships and $13.5 million associated with favorable contractual arrangements which have been determined to have a fair value. The definite-lived intangible assets will be amortized over an average term of approximately 19 years . Supplemental Pro Forma Information The Company's net sales and income before income taxes for the year ended December 31, 2017 include net sales of $146.1 million and pre-tax income of $2.4 million related to the Industrial Wood business. The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016: For the years ended (in millions, except per share data) December 31, 2017 December 31, 2016 Net sales $ 4,454.2 $ 4,293.1 Net income $ 55.0 $ 45.9 Net income attributable to controlling interests $ 44.0 $ 40.1 Net income per share (Basic) $ 0.18 $ 0.17 Net income per share (Diluted) $ 0.18 $ 0.16 The 2017 supplemental pro forma net income was adjusted to exclude $5.3 million ( $3.3 million , net of pro forma income tax impact) of acquisition-related costs incurred in 2017 and $2.8 million ( $1.8 million , net of pro forma income tax impact) of non-recurring expense related to the fair market value adjustment to acquisition date inventory. The unaudited pro forma consolidated information does not necessarily reflect the actual results that would have occurred had the acquisition taken place on January 1, 2016, nor is it meant to be indicative of future results of operations of the combined companies under the ownership and operation of the Company. Other Acquisitions During the year ended December 31, 2017 , we acquired 100% of eight businesses, including the acquisition of the Industrial Wood business. The other seven acquisitions included two North American and five European businesses which have operations in both our refinish and industrial end-markets, within our Performance Coatings segment. All but one of these acquisitions were accounted for as business combinations and the overall impacts to our consolidated financial statements were not considered to be material, either individually or in the aggregate. The fair value associated with identifiable intangible assets from the 2017 Acquisitions was $322.3 million , comprised of $47.4 million in technology, $20.2 million in trademarks, $239.1 million in customer relationships and $15.6 million in other intangibles primarily consisting of favorable contractual arrangements which have been determined to have a fair value. The total fair value of consideration paid or payable, net of cash assumed, on the 2017 Acquisitions was $573.4 million , including acquisition date fair value of contingent consideration of $5.7 million . At December 31, 2017 , we have not finalized the purchase accounting related to the 2017 Acquisitions and these amounts represent preliminary values. We expect to finalize our purchase accounting during the respective measurement periods which will be no later than one year following the closing dates. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS Goodwill The following table shows changes in the carrying amount of goodwill from December 31, 2015 to December 31, 2017 by reportable segment: Performance Coatings Transportation Coatings Total December 31, 2015 $ 869.0 $ 62.3 $ 931.3 Goodwill from acquisitions 64.2 15.5 79.7 Foreign currency translation (43.8 ) (3.1 ) (46.9 ) December 31, 2016 $ 889.4 $ 74.7 $ 964.1 Goodwill from acquisitions 207.2 — 207.2 Purchase accounting adjustments (15.2 ) — (15.2 ) Foreign currency translation 107.8 7.3 115.1 December 31, 2017 $ 1,189.2 $ 82.0 $ 1,271.2 Identifiable Intangible Assets The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average amortization periods (years) Technology $ 498.0 $ (213.6 ) $ 284.4 10.5 Trademarks—indefinite-lived 277.2 — 277.2 Indefinite Trademarks—definite-lived 102.6 (17.7 ) 84.9 15.9 Customer relationships 945.1 (176.8 ) 768.3 19.0 Other 16.6 (3.2 ) 13.4 4.8 Total $ 1,839.5 $ (411.3 ) $ 1,428.2 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average amortization periods (years) Technology $ 417.1 $ (153.6 ) $ 263.5 10.2 Trademarks—indefinite-lived 273.2 — 273.2 Indefinite Trademarks—definite-lived 55.0 (11.4 ) 43.6 14.8 Customer relationships 672.6 (123.3 ) 549.3 18.7 Other 2.4 (1.7 ) 0.7 4.6 Total $ 1,420.3 $ (290.0 ) $ 1,130.3 During the year ended December 31, 2017, we changed certain indefinite-lived trademark intangibles to definite-lived intangible assets. The change was made as a result of decisions regarding our anticipated future use of these trademarks. During this period, we commenced amortizing the assets on a straight-line basis over a 20 -year useful life. Activity related to in-process research and development projects, classified within technology assets, for the years ended December 31, 2016 and 2017 is as follows: In Process Research and Development Activity Balance at December 31, 2015 $ 1.6 Completed — Abandoned — Acquired — Foreign currency translation (0.1 ) Balance at December 31, 2016 $ 1.5 Completed — Abandoned (1.7 ) Acquired 2.3 Foreign currency translation 0.2 Balance at December 31, 2017 $ 2.3 The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is: 2018 $ 110.8 2019 $ 109.5 2020 $ 109.3 2021 $ 108.7 2022 $ 106.5 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In accordance with the applicable guidance for ASC 712, Nonretirement Postemployment Benefits , we accounted for termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated. We have incurred costs in connection with involuntary termination benefits associated with our corporate-related initiatives, including our transition to a standalone entity and cost-saving opportunities associated with our Fit For Growth and Axalta Way initiatives. These amounts are recorded within selling, general and administrative expenses in the consolidated statements of operations. The payments associated with these actions are expected to be completed within 12 to 15 months from the balance sheet date. The following table summarizes the activity related to the restructuring reserves and expenses for the years ended December 31, 2017 , 2016 and 2015 : Balance at December 31, 2014 $ 48.5 Expense recorded 31.9 Payments made (33.8 ) Foreign currency translation (5.3 ) Balance at December 31, 2015 $ 41.3 Expense recorded 58.5 Payments made (31.0 ) Foreign currency translation (2.7 ) Balance at December 31, 2016 $ 66.1 Expense recorded 36.2 Payments made (36.1 ) Foreign currency translation 6.8 Venezuela deconsolidation impact (1.5 ) Balance at December 31, 2017 $ 71.5 Restructuring charges incurred during the fourth quarter ended December 31, 2017 included actions to reduce operational costs through activities to rationalize our manufacturing footprint. The impact to earnings from accelerated depreciation related to these manufacturing assets for the year ended December 31, 2017 was $4.3 million . During the year ended December 31, 2017 , we recorded impairment losses of $7.6 million associated with these manufacturing facilities based on market price estimates recorded within other expense, net. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Liabilities | COMMITMENTS AND CONTINGENCIES Leases - Sales Leaseback Obligations During the year December 31, 2017 , we determined that a previous build-to-suit lease arrangement was to be treated as a sale-leaseback financing. The lessor's building costs will be depreciated over an estimated useful life, consistent with our other sale-leaseback financing identified during the year ended December 31, 2016, beginning at the commencement of the rental terms, at which point such lease assets recorded in property, plant and equipment had a corresponding offset within long-term borrowings. The table below reflects the total remaining cash payments related to both transactions during the rental term as of December 31, 2017 : Sale-leaseback obligations 2018 $ 5.3 2019 5.4 2020 5.4 2021 5.5 2022 5.8 Thereafter 83.4 Total minimum payments $ 110.8 Leases - Other We use various leased facilities and equipment in our operations. The terms for these leased assets vary depending on the lease agreement. Net rental expense under operating leases were $52.7 million , $48.0 million and $48.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. At December 31, 2017 , future minimum payments under non-cancelable operating leases were as follows: Operating Leases 2018 $ 41.8 2019 26.6 2020 19.4 2021 14.9 2022 11.8 Thereafter 20.2 Total minimum payments $ 134.7 Guarantees We guarantee certain of our customers’ obligations to third parties, whereby any default by our customers on their obligations could force us to make payments to the applicable creditors. At December 31, 2017 and 2016, we had outstanding bank guarantees of $15.2 million and $11.1 million , respectively, which expire between 2018 and 2022. We monitor the obligations to evaluate whether we have a liability at the balance sheet date, for which no ne existed as of December 31, 2017 and 2016. Other We are subject to various pending lawsuits and other claims including civil, regulatory and environmental matters. Certain of these lawsuits and other claims may have an impact on us. These litigation matters may involve indemnification obligations by third parties and/or insurance coverage covering all or part of any potential damage awards against us or against DuPont for which we assumed the liabilities through the Acquisition. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time. The potential effects, if any, on the financial statements of Axalta will be recorded in the period in which these matters are probable and estimable. In addition to the aforementioned matters, we are party to various legal proceedings in the ordinary course of business. Although the ultimate resolution of these various proceedings cannot be determined at this time, management does not believe that such proceedings, individually or in the aggregate, will have a material adverse effect on the financial statements of Axalta. |
Long-term Employee Benefits
Long-term Employee Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Long-term Employee Benefits | LONG-TERM EMPLOYEE BENEFITS Defined Benefit Pensions and Other Long-Term Employee Benefit Plans Defined Benefit Pensions Axalta has defined benefit plans that cover certain employees worldwide, with over 85% of the pension benefit obligation within the European region as of December 31, 2017 . Other Long-Term Employee Benefits In prior periods, we had certain long-term employee health care and life insurance benefits for certain eligible employees. These programs required contributions based on retiree-selected coverage levels for certain retirees. In conjunction with certain negative plan amendments completed in 2014, all liabilities and other comprehensive income associated with these other long-term employee benefit plans were reduced to zero at December 31, 2015. The $3.4 million net periodic benefit gain recorded during the year ended December 31, 2015 consisted of amortization of prior service credit of $3.7 million and settlement losses of $0.3 million . The discount rate used to determine the net periodic benefit gain during the year ended December 31, 2015 was 1.50% . Obligations and Funded Status The measurement date used to determine defined benefit obligations was December 31. The following table sets forth the changes to the projected benefit obligations ("PBO") and plan assets for the years ended December 31, 2017 and 2016 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2017 and 2016 for our defined benefit pension plans: Year Ended December 31, 2017 2016 Change in benefit obligation: Projected benefit obligation at beginning of year $ 547.6 $ 541.7 Service cost 9.0 10.7 Interest cost 13.8 15.1 Participant contributions 1.3 1.0 Actuarial losses (gains), net (13.8 ) 57.4 Plan curtailments, settlements and special termination benefits (12.9 ) (2.0 ) Benefits paid (23.3 ) (21.8 ) Business combinations and other adjustments 51.2 — Currency translation adjustment 64.0 (54.5 ) Projected benefit obligation at end of year 636.9 547.6 Change in plan assets: Fair value of plan assets at beginning of year 288.7 278.4 Actual return on plan assets 22.2 41.1 Employer contributions 27.4 27.0 Participant contributions 1.3 1.0 Benefits paid (23.3 ) (21.8 ) Settlements (13.9 ) (1.2 ) Business combinations and other adjustments 32.4 — Currency translation adjustment 30.2 (35.8 ) Fair value of plan assets at end of year 365.0 288.7 Funded status, net $ (271.9 ) $ (258.9 ) Amounts recognized in the consolidated balance sheets consist of: Other assets $ 19.2 $ 0.3 Other accrued liabilities (12.0 ) (10.1 ) Accrued pensions (279.1 ) (249.1 ) Net amount recognized $ (271.9 ) $ (258.9 ) The PBO is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation ("ABO") is the actuarial present value of benefits attributable to employee service rendered to date, but does not include the effects of estimated future pay increases. The following table reflects the ABO for all defined benefit pension plans as of December 31, 2017 and 2016 . Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets. Year Ended December 31, 2017 2016 ABO $ 605.4 $ 516.4 Plans with PBO in excess of plan assets: PBO $ 401.2 $ 542.6 ABO $ 370.0 $ 511.6 Fair value plan assets $ 110.1 $ 283.4 Plans with ABO in excess of plan assets: PBO $ 393.3 $ 488.2 ABO $ 364.9 $ 461.3 Fair value plan assets $ 104.7 $ 232.6 The pre-tax amounts not yet reflected in net periodic benefit cost and included in AOCI include the following related to defined benefit plans: Year Ended December 31, 2017 2016 Accumulated net actuarial losses $ (46.4 ) $ (76.6 ) Accumulated prior service credit 2.6 0.9 Total $ (43.8 ) $ (75.7 ) The accumulated net actuarial losses for pensions relate primarily to differences between the actual net periodic expense and the expected net periodic expense resulting from differences in the significant assumptions, including return on assets, discount rates and compensation trends, used in these estimates. For individual plans in which the accumulated net actuarial losses exceed 10% of the higher of the market value of plan assets or the PBO at the beginning of the year, amortization of such excess has been included in net periodic benefit costs for pension and other long-term employee benefits. The amortization period is the average remaining service period of active employees expected to receive benefits unless a plan is mostly inactive in which case the amortization period is the average remaining life expectancy of the plan participants. Accumulated prior service credit is amortized over the future service periods of those employees who are active at the dates of the plan amendments and who are expected to receive benefits. The estimated pre-tax amounts that are expected to be amortized from AOCI into net periodic benefit cost during 2018 for the defined benefit plans is as follows: 2018 Amortization of net actuarial losses $ (1.2 ) Amortization of prior service credit 0.1 Total $ (1.1 ) Components of Net Periodic Benefit Cost The following table sets forth the pre-tax components of net periodic benefit costs for our defined benefit plans for the years ended December 31, 2017 , 2016 and 2015 . Year Ended December 31, 2017 2016 2015 Components of net periodic benefit cost and amounts recognized in comprehensive (income) loss: Net periodic benefit cost: Service cost $ 9.0 $ 10.7 $ 12.0 Interest cost 13.8 15.1 16.9 Expected return on plan assets (15.0 ) (12.6 ) (14.6 ) Amortization of actuarial loss, net 1.4 0.4 0.4 Amortization of prior service credit — — (0.1 ) Curtailment gain — (1.1 ) — Settlement (gain) loss 0.2 (0.5 ) 0.5 Special termination benefit loss 1.0 0.2 — Net periodic benefit cost 10.4 12.2 15.1 Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: Net actuarial (gain) loss, net (20.6 ) 27.7 (3.4 ) Amortization of actuarial loss, net (1.4 ) (0.4 ) (0.4 ) Prior service (credit) cost (1.2 ) — 2.7 Amortization of prior service credit — — 0.1 Curtailment gain — 1.1 — Settlement gain (loss) (0.2 ) 0.5 (0.5 ) Other adjustments (7.9 ) — — Total (gain) loss recognized in other comprehensive (income) loss (31.3 ) 28.9 (1.5 ) Total recognized in net periodic benefit cost and comprehensive (income) loss $ (20.9 ) $ 41.1 $ 13.6 Included in the other adjustments recognized in other comprehensive (income) loss was a pension plan adjustment related to the deconsolidation of our Venezuelan subsidiary and the corresponding write-off of the accumulated actuarial loss on our Venezuela pension plan. This resulted in a decrease of $8.5 million in AOCI ( $5.9 million , net of tax), as discussed further in Note 25. Assumptions We used the following assumptions in determining the benefit obligations and net periodic benefit cost of our defined benefit plans: 2017 2016 2015 Weighted-average assumptions: Discount rate to determine benefit obligation 2.13 % 2.52 % 3.05 % Discount rate to determine net cost 2.52 % 3.05 % 3.23 % Rate of future compensation increases to determine benefit obligation 2.69 % 3.07 % 3.03 % Rate of future compensation increases to determine net cost 3.07 % 3.03 % 3.57 % Rate of return on plan assets to determine net cost 4.73 % 4.75 % 5.21 % The rate of future compensation increases to determine benefit obligation in 2016 and 2015 includes the impacts of inflationary assumptions of our now deconsolidated Venezuelan subsidiary, which are absent in the 2017 assumption. The discount rates used reflect the expected future cash flow based on plan provisions, participant data and the currencies in which the expected future cash flows will occur. For the majority of our defined benefit pension obligations, we utilize prevailing long-term high quality corporate bond indices applicable to the respective country at the measurement date. In countries where established corporate bond markets do not exist, we utilize other index movement and duration analysis to determine discount rates. The long-term rate of return on plan assets assumptions reflect economic assumptions applicable to each country and assumptions related to the preliminary assessments regarding the type of investments to be held by the respective plans. Estimated future benefit payments The following reflects the total benefit payments expected to be paid for defined benefits: Year ended December 31, Benefits 2018 $ 29.7 2019 $ 32.2 2020 $ 32.2 2021 $ 31.1 2022 $ 32.1 2023—2027 $ 189.0 Plan Assets The defined benefit pension plans for our subsidiaries represent single-employer plans and the related plan assets are invested within separate trusts. Each of the single-employer plans is managed in accordance with the requirements of local laws and regulations governing defined benefit pension plans for the exclusive purpose of providing pension benefits to participants and their beneficiaries. Pension plan assets are typically held in a trust by financial institutions. Our asset allocation targets established are intended to achieve the plan’s investment strategies. Equity securities include varying market capitalization levels. U.S. equity securities are primarily large-cap companies. Fixed income investments include corporate issued, government issued and asset backed securities. Corporate debt securities include a range of credit risk and industry diversification. Other investments include real estate and private market securities such as insurance contracts, interests in private equity, and venture capital partnerships. Assets measured using NAV as a practical expedient include debt asset backed securities and hedge funds. Debt asset backed securities primarily consist of collateralized debt obligations. The market values for these assets are based on the net asset values multiplied by the number of shares owned. Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although we believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company’s investment strategy in pension plan assets is to generate earnings over an extended time to help fund the cost of benefits while maintaining an adequate level of diversification for a prudent level of risk. The table below summarizes the weighted average actual and target pension plan asset allocations at December 31 for all funded Axalta defined benefit plans. Asset Category 2017 2016 Target Allocation Equity securities 25-30% 30-35% 25-30% Debt securities 20-25% 35-40% 20-25% Real estate 0-5% 0-5% 0-5% Other 45-50% 25-30% 45-50% The table below presents the fair values of the defined benefit pension plan assets by level within the fair value hierarchy, as described in Note 3, at December 31, 2017 and 2016 , respectively. Fair value measurements at December 31, 2017 Total Level 1 Level 2 Level 3 Asset Category: Cash and cash equivalents $ 3.7 $ 3.7 $ — $ — U.S. equity securities 33.3 33.0 — 0.3 Non-U.S. equity securities 76.4 73.4 1.2 1.8 Debt securities—government issued 44.6 33.1 7.3 4.2 Debt securities—corporate issued 32.8 17.2 13.1 2.5 Private market securities and other 141.2 2.7 2.8 135.7 Real estate investments 13.5 — — 13.5 Total $ 345.5 $ 163.1 $ 24.4 $ 158.0 Debt asset backed securities at NAV 10.9 Hedge funds at NAV 8.6 $ 365.0 Fair value measurements at December 31, 2016 Total Level 1 Level 2 Level 3 Asset Category: Cash and cash equivalents $ 2.8 $ 2.8 $ — $ — U.S. equity securities 30.7 30.7 — — Non-U.S. equity securities 63.9 63.5 0.3 0.1 Debt—government issued 60.9 48.0 12.9 — Debt—corporate issued 38.4 31.0 5.3 2.1 Private market securities and other 64.6 0.4 0.1 64.1 Real estate investments 11.2 — — 11.2 Total $ 272.5 $ 176.4 $ 18.6 $ 77.5 Debt asset backed securities at NAV 8.8 Hedge funds at NAV 7.4 $ 288.7 Level 3 assets are primarily insurance contracts pledged on behalf of employees with benefits in certain countries, ownership interests in investment partnerships, trusts that own private market securities, real estate investments, and other debt and equity investments. The fair values of our insurance contracts are determined based on the present value of the expected future benefits to be paid under the contract, discounted at a rate consistent with the related benefit obligation. Our real estate investments are primarily comprised of investments in commercial property funds externally valued using third party pricing methodologies, which are not actively traded on public exchanges. Debt and equity securities consist primarily of small investments in other investments that are valued at different frequencies based on the value of the underlying investments. The table below presents a roll forward of activity for these assets for the years ended December 31, 2017 and 2016 . Level 3 assets Total Private market securities Debt and equity Real estate investments Ending balance at December 31, 2015 $ 74.1 $ 63.3 $ 2.3 $ 8.5 Realized (loss) — — — — Change in unrealized gain 1.3 (1.4 ) (0.1 ) 2.8 Purchases, sales, issues and settlements 2.1 2.2 — (0.1 ) Transfers in/(out) of Level 3 — — — — Ending balance at December 31, 2016 $ 77.5 $ 64.1 $ 2.2 $ 11.2 Realized (loss) — — — — Change in unrealized gain 9.9 8.3 0.4 1.2 Purchases, sales, issues and settlements 70.6 63.3 6.2 1.1 Transfers in/(out) of Level 3 — — — — Ending balance at December 31, 2017 $ 158.0 $ 135.7 $ 8.8 $ 13.5 Assumptions and Sensitivities The discount rate is determined as of each measurement date, based on a review of yield rates associated with long-term, high-quality corporate bonds. The calculation separately discounts benefit payments using the spot rates from a long-term, high-quality corporate bond yield curve. The long-term rate of return assumption represents the expected average rate of earnings on the funds invested to provide for the benefits included in the benefit obligations. The long-term rate of return assumption is determined based on a number of factors, including historical market index returns, the anticipated long-term asset allocation of the plans, historical plan return data, plan expenses and the potential to outperform market index returns. For 2018 , the expected long-term rate of return is 4.47% . Anticipated Contributions to Defined Benefit Plan For funded pension plans, our funding policy is to fund amounts for pension plans sufficient to meet minimum requirements set forth in applicable benefit laws and local tax laws. Based on the same assumptions used to measure our benefit obligations at December 31, 2017 we expect to contribute $16.2 million to our defined benefit plans during 2018 . No plan assets are expected to be returned to the Company in 2018 . Defined Contribution Plans The Company sponsors defined contribution plans in both its US and non-US subsidiaries, under which salaried and certain hourly employees may defer a portion of their compensation. Eligible participants may contribute to the plan up to the allowable amount as determined by the plan of their regular compensation before taxes. All contributions and Company matches are invested at the direction of the employee. Company matching contributions vest immediately and aggregated to $45.1 million , $43.3 million and $36.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION During the years ended December 31, 2017 , 2016 and 2015 , we recogni zed $38.5 million , $41.1 million and $30.2 million , respectively, in stock-based compensation expense which was allocated between costs of goods sold and selling, general and administrative expenses on the consolidated statements of operations. We recognized a tax benefit on stock-based compensation of $12.1 million , $14.0 million and $10.7 million and for the years ended December 31, 2017 , 2016 and 2015 , respectively. Included in the $30.2 million of stock-based compensation expense recorded during the year ended December 31, 2015 was $8.2 million of stock-based compensation expense attributable to accelerated vesting of all issued and outstanding stock options issued under the Axalta Coating Systems Bermuda Co., Ltd. 2013 Equity Incentive Plan (the "2013 Plan"), as a result of the April 2015 Carlyle Offerings which reduced Carlyle's ownership interest in Axalta to below 50% , triggering a liquidity event as defined in the 2013 Plan. Compensation cost is recorded for the fair values of the awards over the requisite service period of the awards using the graded-vesting attribution method net of forfeitures. We have elected to recognize forfeitures as they occur. Description of Equity Incentive Plan In 2013, Axalta’s Board of Directors approved the 2013 Plan which reserved an aggregate of 19,839,143 common shares of the Company for issuance to employees, directors and consultants. The 2013 Plan provided for the issuance of stock options, restricted stock or other stock-based awards. No further awards may be granted pursuant to the 2013 Plan. In 2014, Axalta's Board of Directors approved the Axalta Coating Systems Ltd. 2014 Incentive Award Plan (the "2014 Plan") which reserved an aggregate 11,830,000 shares of common stock of the Company for issuance to employees, directors and consultants. The 2014 Plan provides for the issuance of stock options, restricted stock or other stock-based awards. All awards granted pursuant to the 2014 Plan must be authorized by the Board of Directors of Axalta or a designated committee thereof. Our Board of Directors has generally delegated responsibility for administering the 2014 Plan to our Compensation Committee. The terms of the options may vary with each grant and are determined by the Compensation Committee within the guidelines of the 2013 and 2014 Plans. Option life cannot exceed ten years and the Company may settle option exercises by issuing new shares, treasury shares or shares purchased on the open market. Stock Options The Black-Scholes option pricing model was used to estimate fair values of the options as of the date of the grant. The weighted average fair values of options granted in 2017 , 2016 and 2015 were $7.69 , $5.69 and $8.15 per share, respectively. Options granted have a three -year vesting period. Principal weighted average assumptions used in applying the Black-Scholes model were as follows: 2017 Grants 2016 Grants 2015 Grants Expected Term 6.0 years 6.0 years 6.0 years Volatility 21.75 % 21.63 % 22.19 % Dividend Yield — — — Discount Rate 2.03 % 1.45 % 1.79 % The expected term assumptions used for the grants mentioned in the above table were determined using the simplified method and resulted in an expected term of 6.0 years . We do not anticipate paying cash dividends in the foreseeable future and, therefore, use an expected dividend yield of zero . Volatility for outstanding grants was based upon the peer group since the Company had a limited history as a public company. The discount rate was derived from the U.S. Treasury yield curve. A summary of stock option award activity as of and for the year ended December 31, 2017 is presented below: Awards (in millions) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (years) Outstanding at December 31, 2016 9.6 $ 14.40 Granted 0.9 $ 29.56 Exercised (2.2 ) $ 11.42 Forfeited (0.2 ) $ 28.29 Outstanding at December 31, 2017 8.1 $ 16.54 Vested and expected to vest at December 31, 2017 8.1 $ 16.54 $ 128.3 6.52 Exercisable at December 31, 2017 6.3 $ 13.25 $ 119.9 5.96 Cash received by the Company upon exercise of options in 2017 was $24.8 million . Tax benefits on these exercises were $13.1 million . The intrinsic value of options exercised in 2017 , 2016 and 2015 was $42.2 million , $42.5 million and $166.8 million , respectively. The fair value of shares vested during 2017 , 2016 and 2015 was $5.2 million , $3.4 million and $24.3 million , respectively. At December 31, 2017 , there was $4.0 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 1.3 years . Restricted Stock Awards and Restricted Stock Units During the year ended December 31, 2017 , we issued 0.8 million shares of restricted stock awards and restricted stock units. A portion of these awards vests ratably over three years. Other awards granted to certain members of management cliff vest over two, three or four year periods and certain of these awards are subject to accelerated vesting in the event of the award recipient's termination of employment under certain circumstances. A summary of restricted stock and restricted stock unit award activity as of December 31, 2017 is presented below: Awards (in millions) Weighted-Average Fair Value Outstanding at December 31, 2016 2.3 $ 29.18 Granted 0.8 $ 30.10 Vested (1.0 ) $ 30.02 Forfeited (0.2 ) $ 27.21 Outstanding at December 31, 2017 1.9 $ 29.32 At December 31, 2017 , there was $18.2 million of unamortized expense relating to unvested restricted stock awards and restricted stock units that is expected to be amortized over a weighted average period of 1.5 years. Compensation expense is recognized for the fair values of the awards over the requisite service period of the awards using the graded-vesting attribution method. The intrinsic value of awards vested during 2017 and 2016 was $30.1 million and $5.5 million , respectively. The total fair value of awards vested during 2017 and 2016 was $29.4 million and $6.2 million , respectively. No shares vested prior to 2016. Performance Stock Awards and Performance Share Units During the year ended December 31, 2017 , the Company granted performance stock awards and performance share units (collectively referred to as "PSUs") to certain employees of the Company as part of their annual equity compensation award. PSUs are tied to the Company’s total shareholder return ("TSR") relative to the TSR of a selected industry peer group. Each award vests over a three -year service period and covers a three -year performance cycle starting at the beginning of the fiscal year in which the shares were granted. Awards will cliff vest upon meeting the applicable TSR thresholds and the three -year service requirement. The actual number of shares awarded is adjusted to between zero and 200% of the target award amount based upon achievement of pre-determined objectives. TSR relative to peers is considered a market condition under applicable authoritative guidance. A summary of performance stock and performance share unit award activity as of December 31, 2017 is presented below: Awards (in millions) Weighted-Average Fair Value Outstanding at December 31, 2016 0.3 $ 27.74 Granted 0.3 $ 38.11 Vested — $ — Forfeited — $ — Outstanding at December 31, 2017 0.6 $ 31.17 At December 31, 2017 , there was $11.3 million of unamortized expense relating to unvested PSUs that is expected to be amortized over a weighted average period of 1.9 years . Compensation expense is recognized for the fair values of the awards over the requisite service period of the awards using the graded-vesting attribution method. |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | OTHER EXPENSE, NET Year Ended December 31, 2017 2016 2015 Foreign exchange losses, net $ 7.4 $ 30.6 $ 93.7 Impairments 7.6 10.5 30.6 Debt extinguishment and refinancing related costs 13.4 97.6 2.5 Other miscellaneous expense (income), net (2.7 ) 4.0 (15.6 ) Total $ 25.7 $ 142.7 $ 111.2 Our Venezuelan subsidiary, which is a U.S. dollar functional entity, contributed to these exchange losses for all periods leading up to the deconsolidation of the entity during the year ended December 31, 2017. The losses for the years ended December 31, 2017 , 2016 and 2015 were $1.8 million , $23.5 million and $51.5 million , respectively. Debt extinguishment and refinancing related costs incurred during the year ended December 31, 2017 include third-party fees incurred in conjunction with the refinancing of the 2023 Dollar Term Loans. Debt extinguishment and refinancing related costs incurred during the year ended December 31, 2016 include redemption premiums on our 2021 Dollar Senior Notes and 2021 Euro Senior Notes as well as the unamortized (or pro-rata unamortized) deferred financing costs and original issue discounts associated with the debt extinguishment. See Note 20 for further information surrounding these debt-related transactions. Other miscellaneous expense (income), net included a gain for the year ended December 31, 2015 resulting from the acquisition of an additional 25% interest in an equity method investee for a purchase price of $4.3 million . As a result of the acquisition, we obtained a controlling interest and recognized a gain of $5.4 million on the remeasurement of our previously held equity interest as of the acquisition date. Also included in other miscellaneous expense (income), net for the year ended December 31, 2015 was the recognition of a $5.6 million gain on certain foreign currency forward contracts compared to losses of $0.2 million and $4.3 million for the years ended December 31, 2017 and 2016, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the U.S. TCJA legislation, as defined herein, was enacted into law, which significantly revises the Internal Revenue Code of 1986, as amended. The U.S. TCJA includes, among other items, (1) permanent reduction of the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%; (2) limitations on the tax deduction for net interest expense to 30% of adjusted earnings; (3) a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (4) a shift of the U.S. taxation of multinational corporations from a tax on worldwide income to a territorial system (along with certain rules designed to prevent erosion of the U.S. income tax base); and (5) modifying or repealing many other business deductions and credits (including modifications to annual foreign tax credit limitations). We have assessed the impacts of the changes from the U.S. TCJA and recorded a provisional non-cash net tax charge of $107.8 million as of December 31, 2017. This provisional tax charge includes a one-time $81.1 million remeasurement of the net U.S. deferred tax assets to the lower enacted U.S. corporate tax rate of 21% and establishment of a valuation allowance of $26.1 million on certain interest and foreign tax credit carryforwards as a result of other provisions in the U.S. TCJA effective January 1, 2018. We intend to maintain this valuation allowance unless further regulatory guidance provides sufficient positive evidence to support the realizability of the deferred tax assets. Additionally, we recorded $0.6 million of withholding tax on unremitted earnings due to the implementation of the territorial tax system. At present, we do not estimate any material impacts from the repatriation tax. While we have completed our provisional analysis of the income tax effects of the U.S. TCJA, the related tax charge may differ, possibly materially, due to further refinement of our calculations, changes in interpretations and assumptions that we have made, additional guidance that may be issued by regulatory bodies, and actions and related accounting policy decisions we may take as a result of the new legislation. We will complete our analysis over the one-year measurement period from the enactment of the law as provided for by SAB 118, and any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. Domestic and Foreign Components of Income Before Income Taxes Year Ended December 31, 2017 2016 2015 Domestic $ 41.8 $ 27.9 $ (22.5 ) Foreign 147.8 54.8 180.4 Total $ 189.6 $ 82.7 $ 157.9 Provision (Benefit) for Income Taxes Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Current Deferred Total Current Deferred Total Current Deferred Total U.S. federal $ 4.6 $ 102.8 $ 107.4 $ 0.9 $ (1.3 ) $ (0.4 ) $ — $ 17.8 $ 17.8 U.S. state and local 1.7 0.4 2.1 3.7 8.2 11.9 3.1 8.5 11.6 Foreign 43.9 (11.5 ) 32.4 49.4 (22.8 ) 26.6 65.2 (32.5 ) 32.7 Total $ 50.2 $ 91.7 $ 141.9 $ 54.0 $ (15.9 ) $ 38.1 $ 68.3 $ (6.2 ) $ 62.1 Reconciliation to U.S. Statutory Rate Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Statutory U.S. federal income tax rate (1) $ 66.4 35.0 % $ 29.0 35.0 % $ 55.2 35.0 % Foreign income taxed at rates other than 35% (56.2 ) (29.6 ) (45.6 ) (55.1 ) (41.4 ) (26.2 ) Changes in valuation allowances 45.3 23.9 9.6 11.6 34.4 21.8 Foreign exchange gain (loss), net (17.7 ) (9.3 ) 3.1 3.7 (10.5 ) (6.6 ) Unrecognized tax benefits 3.1 1.6 7.1 8.6 0.4 0.3 Foreign taxes 4.1 2.2 4.5 5.4 5.8 3.7 Non-deductible interest 9.8 5.2 6.7 8.1 4.9 3.1 Non-deductible expenses 4.6 2.4 4.7 5.7 5.5 3.5 Tax credits (4.2 ) (2.2 ) (6.7 ) (8.1 ) (5.5 ) (3.5 ) Excess tax benefits relating to share-based compensation (13.1 ) (6.9 ) (13.4 ) (16.2 ) — — Venezuela deconsolidation and impairment (2.0 ) (1.1 ) 23.8 28.8 10.7 6.8 U.S. state and local taxes, net 1.3 0.7 7.8 9.4 8.1 5.1 U.S. tax reform (2) 107.8 56.9 — — — — Other - net (7.3 ) (4.0 ) 7.5 9.2 (5.5 ) (3.7 ) Total income tax provision / effective tax rate $ 141.9 74.8 % $ 38.1 46.1 % $ 62.1 39.3 % (1) The U.S. statutory rate has been used as management believes it is more meaningful to the Company. (2) Provisional net tax effect of the U.S. TCJA. Deferred Tax Balances Year Ended December 31, 2017 2016 Deferred tax asset Tax loss, credit and interest carryforwards $ 265.3 $ 263.7 Goodwill and intangibles — 48.1 Compensation and employee benefits 86.0 92.8 Accruals and other reserves 33.9 40.0 Research and development capitalization 8.9 15.7 Equity investment and other securities 26.4 (0.7 ) Other 10.9 16.4 Total deferred tax assets 431.4 476.0 Less: Valuation allowance (214.2 ) (135.4 ) Net deferred tax assets 217.2 340.6 Deferred tax liabilities Goodwill and intangibles (15.2 ) — Property, plant and equipment (146.9 ) (168.4 ) Unremitted earnings (7.4 ) (5.8 ) Long-term debt (2.2 ) (4.2 ) Total deferred tax liabilities (171.7 ) (178.4 ) Net deferred tax asset $ 45.5 $ 162.2 Non-current assets 198.4 322.4 Non-current liability (152.9 ) (160.2 ) Net deferred tax asset $ 45.5 $ 162.2 At December 31, 2017 , the Company had $176.4 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $84.9 million have indefinite carryforward periods, and the remaining $91.5 million are subject to expiration between the years 2020 through 2026. Non-U.S. tax credit carryforwards at December 31, 2017 amounted to $1.8 million . Of these, $1.5 million have indefinite carryforward period, and the remaining are subject to expiration between the years 2020 and 2022. In the U.S., there were approximately $37.2 million of federal net operating loss carryforwards (tax effected) subject to expiration in years beyond 2032, and $2.7 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2018 and 2037. U.S. tax credit carryforwards at December 31, 2017 amounted to $34.8 million subject to expiration between the years 2019 and 2037. U.S. interest carryforwards at December 31, 2017 of $12.4 million have an indefinite carryforward period. Utilization of our U.S. net operating loss and tax credit carryforwards may be subject to annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the net operating loss and tax credit carryforwards before their utilization. At December 31, 2016 , the Company had $152.8 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $63.2 million have indefinite carryforward periods, and the remaining $89.6 million are subject to expiration between the years 2018 through 2026. Non-U.S. tax credit carryforwards at December 31, 2016 amounted to $1.9 million . Of these, $1.8 million have indefinite carryforward period, and the remaining are subject to expiration between the years 2018 and 2021. In the U.S., there were approximately $62.8 million of federal net operating loss carryforwards (tax effected) subject to expiration in years beyond 2032, and $2.5 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2018 and 2036. U.S. tax credit carryforwards at December 31, 2016 amounted to $26.0 million subject to expiration between the years 2019 and 2036. U.S. interest carryforwards at December 31, 2015 of $17.7 million have an indefinite carryforward period. Utilization of our U.S. net operating loss and tax credit carryforwards may be subject to annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the net operating loss and tax credit carryforwards before their utilization. Valuation allowances relate primarily to the increase in tax loss carryforwards and equity investment in foreign jurisdictions where the Company does not believe the associated net deferred tax assets will be realized, due to expiration, limitation or insufficient future taxable income. Of the $214.2 million valuation allowance at December 31, 2017, $188.1 million pertains to certain non-U.S. jurisdictions. A significant portion of the non-U.S. valuation allowance balance relates to the Company’s operations in Luxembourg and the Netherlands, which amount to $155.7 million and $113.8 million for years ended December 31, 2017 and December 31, 2016 , respectively. In the Netherlands, the Company’s tax loss carryforwards have a nine -year carryforward period and are subject to expiration between years 2022 through 2026. In Luxembourg, the Company’s tax loss carryforwards have an indefinite carryforward period. The remaining $26.1 million valuation allowance relates to certain U.S. interest and foreign tax credit carryforwards that were impacted by the enactment of the U.S. TCJA and discussed in more detail above. Total Gross Unrecognized Tax Benefits Year Ended December 31, 2017 2016 2015 Balance at January 1 $ 12.3 $ 4.7 $ 5.3 Increases related to positions taken on items from prior years 1.9 — — Decreases related to positions taken on items from prior years — (0.2 ) (0.6 ) Increases related to positions taken in the current year 3.0 7.8 — Balance at December 31 $ 17.2 $ 12.3 $ 4.7 At December 31, 2017 , 2016 and 2015 , the total amount of gross unrecognized tax benefits was $17.2 million , $12.3 million and $4.7 million , of which $9.7 million , $8.5 million and $4.7 million would impact the effective tax rate, if recognized, respectively. Interest and penalties associated with gross unrecognized tax benefits are included as components of the "Provision (benefit) for income taxes," and totaled an income tax expense of $0.1 million , $0.3 million and $0.4 million in 2017 , 2016 and 2015 , respectively. Accrued interest and penalties are included within the related tax liability line in the balance sheet. The Company’s accrual for interest and penalties at December 31, 2017 , 2016 and 2015 was $1.2 million , $1.1 million and $0.7 million , respectively. The Company is subject to income tax in approximately 47 jurisdictions outside the U.S. The Company’s significant operations outside the U.S. are located in Belgium, China, Germany and Mexico. The statute of limitations varies by jurisdiction with 2007 being the oldest tax year still open in the material jurisdictions. The Company is currently under audit in certain jurisdictions for tax years under responsibility of the predecessor, as well as tax periods under the Company's ownership. Pursuant to the acquisition agreement, all tax liabilities related to tax years prior to 2013 acquisition will be indemnified by DuPont. As of December 31, 2017 , 2016 and 2015 , we had gross unrecognized tax benefits of $18.4 million , $13.4 million and $5.4 million , respectively, including interest and penalties. Due to the high degree of uncertainty regarding future timing of cash flows associated with these liabilities, we are unable to estimate the years in which settlement will occur with the respective taxing authorities. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | NET INCOME PER COMMON SHARE Basic net income per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the hypothetical exercise of outstanding stock options and vesting of restricted shares and performance shares. A reconciliation of our basic and diluted net income per common share is as follows: Year Ended December 31, (In millions, except per share data) 2017 2016 2015 Net income to common shareholders $ 36.7 $ 38.8 $ 91.6 Basic weighted average shares outstanding 240.4 238.1 233.8 Diluted weighted average shares outstanding 246.1 244.4 239.7 Net income per common share: Basic net income per share $ 0.15 $ 0.16 $ 0.39 Diluted net income per share $ 0.15 $ 0.16 $ 0.38 The number of anti-dilutive shares that have been excluded in the computation of diluted net income per share for the years ended December 31, 2017 , 2016 and 2015 were 1.8 million , 1.3 million and 0.7 million , respectively. |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, Net | ACCOUNTS AND NOTES RECEIVABLE, NET Year Ended December 31, 2017 2016 Accounts receivable—trade, net $ 748.2 $ 640.4 Notes receivable 29.4 68.7 Other 92.6 92.8 Total $ 870.2 $ 801.9 Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $ 15.9 million and $13.7 million at December 31, 2017 and 2016 , respectively. Bad debt expense was $3.5 million , $3.4 million and $4.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Year Ended December 31, 2017 2016 Finished products $ 347.5 $ 315.2 Semi-finished products 95.5 87.5 Raw materials and supplies 165.6 127.0 Total $ 608.6 $ 529.7 Stores and supplies inventories of $20.8 million and $20.2 million at December 31, 2017 and 2016 , respectively, were valued under the weighted average cost method. |
Net Property, Plant and Equipme
Net Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Depreciation expense amounted to $176.6 million , $176.8 million and $169.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Year Ended December 31, Useful Lives (years) 2017 2016 Land $ 87.6 $ 85.2 Buildings and improvements 5 - 25 516.3 454.0 Machinery and equipment 3 - 25 1,244.0 1,087.5 Software 5 - 7 155.3 139.7 Other 3 - 20 41.7 35.6 Construction in progress 148.7 131.0 Total 2,193.6 1,933.0 Accumulated depreciation (805.0 ) (617.3 ) Property, plant and equipment, net $ 1,388.6 $ 1,315.7 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS Year Ended December 31, 2017 2016 Available for sale securities $ 5.2 $ 4.4 Deferred income taxes—non-current 198.4 322.4 Other assets 225.0 209.3 Total $ 428.6 $ 536.1 |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable | ACCOUNTS PAYABLE Year Ended December 31, 2017 2016 Trade payables $ 510.7 $ 429.5 Non-income taxes 27.0 27.2 Other 17.2 17.5 Total $ 554.9 $ 474.2 |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | OTHER ACCRUED LIABILITIES Year Ended December 31, 2017 2016 Compensation and other employee-related costs $ 153.3 $ 145.8 Current portion of long-term employee benefit plans 12.0 10.1 Restructuring 71.5 66.1 Discounts, rebates, and warranties 138.8 119.8 Income taxes payable 22.2 23.3 Derivative liabilities 3.3 1.3 Other 88.5 73.6 Total $ 489.6 $ 440.0 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Borrowings are summarized as follows: Year Ended December 31, 2017 2016 2024 Dollar Term Loans $ 1,960.0 $ — 2023 Dollar Term Loans — 1,545.0 2023 Euro Term Loans 472.5 417.6 2024 Dollar Senior Notes 500.0 500.0 2024 Euro Senior Notes 399.7 349.7 2025 Euro Senior Notes 536.9 469.8 Short-term and other borrowings 94.8 39.8 Unamortized original issue discount (9.1 ) (10.0 ) Unamortized deferred financing costs (39.2 ) (48.0 ) $ 3,915.6 $ 3,263.9 Less: Short-term borrowings $ 12.9 $ 8.3 Current portion of long-term borrowings 24.8 19.6 Long-term debt $ 3,877.9 $ 3,236.0 Senior Secured Credit Facilities, as amended On February 3, 2014 (the "Second Amendment Effective Date"), Axalta Coating Systems Dutch B B.V., as "Dutch Borrower", and its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings Inc., as "U.S. Borrower", executed the second amendment to the Senior Secured Credit Facilities (the "Second Amendment"). The Second Amendment (i) converted all of the outstanding Dollar Term Loans ( $2,282.8 million ) into a new class of term loans (the "2020 Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans (€ 397.0 million ) into a new class of term loans (the "2020 Euro Term Loans" and, together with the 2020 Dollar Term Loans, the "2020 Term Loans"). On December 15, 2016 (the "Fourth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fourth amendment to the Senior Secured Credit Facilities (the "Fourth Amendment"). The Fourth Amendment (i) converted all of the outstanding 2020 Dollar Term Loans ( $1,775.3 million ) into a new tranche of term loans issued at par with principal of $1,545.0 million (the "2023 Dollar Term Loans"), (ii) converted all of the outstanding 2020 Euro Term Loans ( €199.0 million ) into a new tranche of term loans issued at par with principal of €400.0 million (the "2023 Euro Term Loans" and, together with the 2023 Dollar Term Loans, the "2023 Term Loans"). On June 1, 2017 (the "Fifth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fifth amendment to the Credit Agreement (the "Fifth Amendment"). The Fifth Amendment converted all of the outstanding 2023 Dollar Term Loans ( $1,541.1 million ) into a new tranche of term loans with principal of $2,000.0 million (the "2024 Dollar Term Loans", together with the 2023 Euro Term Loans, the "Current Terms Loans", and with the Revolving Credit Facility, as defined herein, the "Senior Secured Credit Facilities"). The 2024 Dollar Term Loans were issued at 99.875% of par, or a $2.5 million discount. Interest was and is payable quarterly on both the 2023 Term Loans and Current Term Loans. The 2024 Dollar Term Loans are subject to a floor of zero plus an applicable rate of 2.00% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 1.00% per annum for Base Rate Loans as defined in the Credit Agreement. Prior to the Fifth Amendment, interest on the 2023 Dollar Term Loans was subject to a floor of 0.75% , plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such 2023 Dollar Term Loans was 2.50% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 1.50% per annum for Base Rate Loans as defined in the Credit Agreement. The 2023 Euro Term Loans are also subject to a floor of 0.75% , plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such New Euro Term Loans is 2.25% per annum for Eurocurrency Rate Loans. The 2023 Euro Term Loans may not be Base Rate Loans. Prior to the Fourth Amendment, interest on the 2020 Dollar Term Loans was subject to a floor of 1.00% , plus an applicable rate after the Second Amendment Effective Date. The applicable rate for such 2020 Dollar Term Loans was 3.00% per annum for Eurocurrency Rate Loans and 2.00% per annum for Base Rate Loans. The 2020 Euro Term Loans were also subject to a floor of 1.00% , plus an applicable rate. The applicable rate for such 2020 Euro Term Loans was 3.25% per annum for Eurocurrency Rate Loans. The 2020 Euro Term Loans were not to be Base Rate Loans. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans was subject to a further 25 basis point reduction if the Total Net Leverage Ratio as defined in the Credit Agreement governing the Senior Secured Credit Facilities is less than or equal to 4.50 :1.00. During the third quarter of 2014, our Total Net Leverage Ratio was less than 4.50 :1.00. Consequently, the applicable rates were changed to 2.75% for the 2020 Dollar Term Loans and 3.00% for the 2020 Euro Term Loans through the Fourth Amendment Effective Date. Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $75.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25 :1.00 or 3.50 :1.00, respectively) of Excess Cash Flow. The Senior Secured Credit Facilities are secured by substantially all assets of Dutch A B.V. and the guarantors. The 2023 Euro Term Loans mature on February 1, 2023 and the 2024 Dollar Term Loans mature on June 1, 2024. Principal is paid quarterly on both the 2023 Euro Term Loans and the 2024 Dollar Term Loans based on 1% per annum of the original principal amount outstanding on the most recent amendment date with the unpaid balance due at maturity. We are subject to customary negative covenants in addition to the First Lien Leverage Ratio financial covenant for purposes of determining any Excess Cash Flow mandatory payment. Further, the Senior Secured Credit Facilities, among other things, include customary restrictions (subject to certain exceptions) on the Company's ability to incur certain indebtedness, grant certain liens, make certain investments, declare or pay certain dividends, or repurchase shares of the Company's common stock. As of December 31, 2017 , the Company is in compliance with all covenants under the Senior Secured Credit Facilities. Revolving Credit Facility On August 1, 2016 (the "Third Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the third amendment to the Senior Secured Credit Facilities (the "Third Amendment"). The Third Amendment impacted the revolving credit facility under the Senior Secured Credit Facilities (the "Revolving Credit Facility") by (i) extending the maturity of the Revolving Credit Facility to five years from the Third Amendment Effective Date, or August 1, 2021, provided that such date will be accelerated to the date that is 91 days prior to the maturity of the term loans borrowed under the Credit Agreement if the maturity of such term loans precedes the maturity of the Revolving Credit Facility, (ii) decreasing the applicable interest margins, and (iii) amending the financial covenant applicable to the Revolving Credit Facility to be applicable only when greater than 30% (previously 25% ) of the Revolving Credit Facility (including letters of credit not cash collateralized to at least 103% ) is outstanding at the end of the fiscal quarter. If such conditions are met, the First Lien Net Leverage Ratio (as defined by the Credit Agreement) at the end of the quarter is required to be greater than 5.50 :1.00. At December 31, 2017 , the financial covenant is not applicable as there were no borrowings. Under the Third Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of zero for Adjusted Eurocurrency Rate Loans (as defined in the Credit Agreement) plus an applicable rate of 2.75% (previously 3.50% ) subject to an additional step-down to 2.50% or 2.25% , if the First Lien Net Leverage Ratio falls below 3.00 :1.00 or 2.50 :1.00, respectively. For Base Rate Loans, the interest is subject to a floor of the greater of the federal funds rate plus 0.50% , the Prime Lending Rate or an Adjusted Eurocurrency Rate plus 1% , plus an applicable rate of 1.75% (previously 2.50% ), subject to an additional step-down to 1.50% or 1.25% , if the First Lien Net Leverage Ratio falls below 3.00 :1.00 and 2.50 :1.00, respectively. Under circumstances described in the Credit Agreement, we may increase available revolving or term facility borrowings by up to $400.0 million plus an additional amount subject to the Company not exceeding a maximum first lien leverage ratio described in the Credit Agreement. There have been no borrowings outstanding on the Revolving Credit Facility since the issuance of the Senior Secured Credit Facilities. At December 31, 2017 and December 31, 2016 , letters of credit issued under the Revolving Credit Facility totaled $35.5 million and $21.3 million , respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $364.5 million and $378.7 million at December 31, 2017 and December 31, 2016 , respectively. Significant Transactions During the year ended December 31, 2017, in connection with the Fifth Amendment discussed above, we recorded a loss on extinguishment of $13.0 million . In addition, during the year ended December 31, 2017, we voluntarily prepaid $30.0 million in principal of the outstanding 2024 Dollar Term Loans, resulting in a loss of $0.4 million , consisting of the write-off of $0.3 million and $0.1 million of unamortized deferred financing costs and original issue discounts, respectively. During the year ended December 31, 2016, in connection with the Third Amendment discussed above, we recorded a loss on extinguishment of $2.3 million . In addition, in connection with the Fourth Amendment, we recorded a $10.4 million loss on extinguishment and other financing-related costs for the year ended December 31, 2016. The loss was comprised of the write-off of unamortized deferred financing costs and original issue discounts attributable to the 2020 Term Loans of $4.7 million and $1.5 million , respectively, and other fees directly associated with the Fourth Amendment of $4.2 million . Prior to the Fourth Amendment, in April and October of 2016, we voluntarily prepaid $100.0 million and $150.0 million in principal of the outstanding 2020 Dollar Term Loans, respectively, and €200.0 million in principal of the outstanding 2020 Euro Term Loans. As a result, we recorded losses on extinguishment for the year ended December 31, 2016 of $9.6 million , consisting of the write-off of $9.1 million and $0.5 million of unamortized deferred financing costs and original issue discounts, respectively. During the year ended December 31, 2015, we voluntarily prepaid $100.0 million of the outstanding 2020 Dollar Term Loans which resulted in a loss on extinguishment of $2.5 million , consisting of the write-off of $1.8 million and $0.7 million of unamortized deferred financing costs and original issue discounts, respectively. Significant Terms of the 2021 Senior Notes On February 1, 2013, Dutch B B.V, as the “Dutch Issuer”, an indirect, wholly owned subsidiary of the Company, and Axalta US Holdings, as the “U.S. Issuer” (collectively the "Issuers") issued $750.0 million aggregate principal amount of 7.375% senior unsecured notes due 2021 (the "2021 Dollar Senior Notes") and related guarantees thereof. Additionally, the Issuers issued € 250.0 million aggregate principal amount of 5.750% senior secured notes due 2021 (the "2021 Euro Senior Notes" and, together with the Dollar Senior Notes, the "2021 Senior Notes") and related guarantees thereof. The 2021 Senior Notes were unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries. Issuance of New Senior Notes and Redemption of 2021 Senior Notes On August 16, 2016, Axalta Coating Systems, LLC ("New U.S. Issuer"), issued $500.0 million in aggregate principal amount of 4.875% Senior Unsecured Notes (the “2024 Dollar Senior Notes”) and €335.0 million in aggregate principal amount of 4.250% Senior Unsecured Notes (the “2024 Euro Senior Notes”), each due August 2024 (collectively, the “2024 Senior Notes”, and with the 2025 Euro Senior Notes, the “New Senior Notes”, each of which is described in detail below), for the primary purpose of redeeming the 2021 Dollar Senior Notes (the “August 2016 Refinancing”). Consistent with the terms of the 2021 Dollar Senior Notes, we extinguished the principal at a redemption price equal to 105.531% . In connection with the August 2016 Refinancing, we recorded a $56.9 million loss on extinguishment and other financing-related costs for the year ended December 31, 2016. The loss was comprised of the redemption premium of $41.5 million , write-off of unamortized deferred financing costs attributable to the 2021 Dollar Senior Notes of $13.0 million and other fees directly associated with the transaction of $2.4 million . The 2024 Senior Notes are fully and unconditionally guaranteed by Dutch B B.V. (“Parent Guarantor”). In addition, on September 27, 2016, the Dutch Issuer issued €450.0 million in aggregate principal amount of 3.750% Euro Senior Unsecured Notes due January 2025 (the “2025 Euro Senior Notes”) for the primary purpose of redeeming the 2021 Euro Senior Notes and the partial prepayment of the 2020 Euro Term Loans (the “September 2016 Refinancing”). Consistent with the original terms of the 2021 Euro Senior Notes, we extinguished the principal at a redemption price equal to 104.313% . In connection with the September 2016 Refinancing, we recorded an $18.4 million loss on extinguishment and other financing-related costs for the year ended December 31, 2016. The loss was comprised of the redemption premium of $12.1 million , write-off of unamortized deferred financing costs attributable to the 2021 Euro Senior Notes of $5.6 million and other fees directly associated with the transaction of $0.7 million . The indentures governing the New Senior Notes contain covenants that restrict the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates. i) 2024 Dollar Senior Notes The 2024 Dollar Senior Notes were issued at 99.951% of par, or $2.0 million discount, and are due August 15, 2024. The 2024 Dollar Senior Notes bear interest at 4.875% and are payable semi-annually on February 15 and August 15. We have the option to redeem all or part of the 2024 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated: Period 2024 Dollar Notes Percentage 2019 103.656 % 2020 102.438 % 2021 101.219 % 2022 and thereafter 100.000 % Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Dollar Senior Notes) at a redemption price of 104.875% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption. Upon the occurrence of certain events constituting a change of control, holders of the 2024 Dollar Senior Notes have the right to require us to repurchase all or any part of the 2024 Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. The 2024 Dollar Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes. The indebtedness issued through the 2024 Dollar Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness. (ii) 2024 Euro Senior Notes The 2024 Euro Senior Notes were issued at par and are due August 15, 2024. The 2024 Euro Senior Notes bear interest at 4.250% and are payable semi-annually on February 15 and August 15. We have the option to redeem all or part of the 2024 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated: Period 2024 Euro Notes Percentage 2019 103.188 % 2020 102.125 % 2021 101.063 % 2022 and thereafter 100.000 % Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Euro Senior Notes) at a redemption price of 104.250% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption. Upon the occurrence of certain events constituting a change of control, holders of the 2024 Euro Senior Notes have the right to require us to repurchase all or any part of the 2024 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. The 2024 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes. The indebtedness issued through the 2024 Euro Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness. (iii) 2025 Euro Senior Notes The 2025 Euro Senior Notes were issued at par and are due January 15, 2025. The 2025 Euro Senior Notes bear interest at 3.750% and are payable semi-annually on January 15 and July 15. We have the option to redeem all or part of the 2025 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after January 15 of the years indicated: Period 2025 Euro Notes Percentage 2019 102.813 % 2020 101.875 % 2021 100.938 % 2022 and thereafter 100.000 % Notwithstanding the foregoing, at any time and from time to time prior to January 15, 2020, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2025 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2025 Euro Senior Notes) at a redemption price of 103.750% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption. Upon the occurrence of certain events constituting a change of control, holders of the 2025 Euro Senior Notes have the right to require us to repurchase all or any part of the 2025 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. The 2025 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Dutch Issuer’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes. The indebtedness issued through the 2025 Euro Senior Notes is senior unsecured indebtedness of the Dutch Issuer, is senior in right of payment to all future subordinated indebtedness of the Dutch Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the Dutch Issuer and guarantors. The 2025 Euro Senior Notes are effectively subordinated to any secured indebtedness of the Dutch Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness. Future repayments Below is a schedule of required future repayments of all borrowings outstanding at December 31, 2017 . 2018 $ 40.5 2019 26.5 2020 25.7 2021 25.7 2022 52.4 Thereafter 3,778.6 $ 3,949.4 The table above excludes $14.5 million of debt associated with our sale-leaseback financings that will not be settled with cash. |
Fair Value Accounting
Fair Value Accounting | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | FAIR VALUE ACCOUNTING Assets measured at fair value on a non-recurring basis During the years ended December 31, 2017 and 2015 we recorded impairment losses of $1.7 million and $0.1 million , respectively, associated with the abandonment of certain in process research and development projects. There were no impairment losses recorded during the year ended December 31, 2016. During the years ended December 31, 2017 , 2016 and 2015 , we recorded impairment losses on property of $7.6 million , $10.5 million and $30.6 million , respectively. The impairment losses recorded during the year ended December 31, 2017 related to actions to reduce operational costs through activities to rationalize our manufacturing footprint and the write-down of these manufacturing facilities based on market price estimates. The losses recorded during the years ended December 31, 2016 and 2015 were related to losses at our Venezuelan subsidiary to write down the carrying value of a real estate investment to its fair value. Additionally, during the year ended December 31, 2016, we recorded an impairment loss of $57.9 million on our productive long-lived assets associated with our Venezuela operations. Fair value of financial instruments Available for sale securities - The fair values of available for sale securities at December 31, 2017 and 2016 were $5.2 million and $4.4 million , respectively. The fair value was based upon either Level 1 inputs when the securities are actively traded with quoted market prices or Level 2 when the securities are not frequently traded. Long-term borrowings - The fair values of the 2024 Dollar Senior Notes, 2024 Euro Senior Notes and 2025 Euro Senior Notes at December 31, 2017 were $524.4 million , $427.7 million and $571.8 million , respectively. The fair values at December 31, 2016 were $500.0 million , $363.8 million and $472.2 million , respectively. The estimated fair values of these notes are based on recent trades and current trending. Due to the infrequency of trades of these notes, these inputs are considered to be Level 2 inputs. The fair values of the 2024 Dollar Term Loans and the 2023 Euro Term Loans at December 31, 2017 were $1,967.4 million and $475.5 million , respectively. The fair values of the 2023 Dollar Term Loans and the 2023 Euro Term Loans at December 31, 2016 were $1,560.5 million and $421.8 million , respectively. The estimated fair values of the 2024 Dollar Term Loans and the 2023 Euro Term Loans are based on recent trades, as reported by a third party pricing service. Due to the infrequency of trades of the Current Term Loans, these inputs are considered to be Level 2 inputs. Fair value of contingent consideration The fair value of contingent consideration associated with acquisitions completed in current and prior years are valued at each balance sheet date, until amounts become payable, with adjustments recorded within selling, general and administrative expenses on the consolidated statement of operations. The fair value of contingent consideration at December 31, 2017 and 2016 was $8.9 million and $10.0 million , respectively. During the years ended December 31, 2017 and 2016 the Company recorded gains of $3.0 million and losses of $0.8 million associated with the changes to fair value, respectively. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs. Derivative Instruments Qualifying and Designated as Cash Flow Hedges During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps matured on September 29, 2017 . During the year ended December 31, 2017, we entered into four 1.5% interest rate caps with aggregate notional amounts totaling $850 million to hedge the variable interest rate exposures on our 2024 Dollar Term Loans. Three of these interest rate caps, comprising $600 million of the notional value, are effective beginning September 30, 2017 and expire December 31, 2019 and included an aggregate deferred premium of $8.6 million . The fourth interest rate cap, comprising the remaining $250 million of the notional value, is in place starting from January 1, 2018 and expires December 31, 2021 and included a deferred premium of $8.1 million . All deferred premiums will be paid quarterly over the term of the respective interest rate caps. The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in the accompanying consolidated balance sheet: Year Ended December 31, 2017 2016 Prepaid and other assets: Interest rate swaps $ — $ 0.1 Other assets: Interest rate caps $ 1.2 $ — Total assets $ 1.2 $ 0.1 Other accrued liabilities: Interest rate swaps $ — $ 0.8 Interest rate caps 2.6 — Total liabilities $ 2.6 $ 0.8 For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current period earnings. The following table sets forth the locations and amounts recognized during the years ended December 31, 2017 , 2016 , and 2015 respectively, for these cash flow hedges. Derivatives in Cash Flow Hedging Relationships in 2017: Amount of Loss Recognized in OCI on Derivatives (Effective Portion) Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion) Location of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion) Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion) Interest rate contracts $ 1.8 Interest expense, net $ (0.4 ) Interest expense, net $ (2.3 ) Derivatives in Cash Flow Hedging Relationships in 2016: Amount of Location of Loss Reclassified from Amount of Location of Amount of Interest rate contracts $ 2.0 Interest expense, net $ 5.9 Interest expense, net $ 1.2 Derivatives in Cash Flow Hedging Relationships in 2015: Amount of Location of Loss Reclassified from Amount of Location of Amount of Interest rate contracts $ 5.5 Interest expense, net $ 6.5 Interest expense, net $ 0.4 Derivative Instruments Not Designated as Cash Flow Hedges We periodically enter into foreign currency forward and option contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other (income) expense, net in the consolidated statement of operations. During the year ended December 31, 2013, we purchased a € 300.0 million 1.5% interest rate cap on our Euro Term Loans for a premium of $3.1 million . The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument were recorded in current period earnings in interest expense. The hedge matured on September 29, 2017. During the year ended December 31, 2017, we purchased a 1.25% interest rate cap with a notional amount of €388.0 million to hedge the variable interest rate exposures on our 2023 Euro Term Loans. We paid a premium equal to $0.6 million for the interest rate cap which is effective beginning September 30, 2017 through December 31, 2019. Changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense. The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our consolidated balance sheet: Year Ended December 31, 2017 2016 Prepaid and other assets: Foreign currency contracts $ — $ 0.1 Total assets $ — $ 0.1 Other accrued liabilities: Foreign currency contracts $ 0.7 $ 0.5 Total liabilities: 0.7 0.5 Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows: Derivatives Not Designated as Hedging Instruments under ASC 815 Location of (Gain) Loss Recognized in Income on Derivatives Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Foreign currency forward contracts Other expense, net $ 11.2 $ 4.3 $ (5.6 ) Interest rate cap Interest expense, net 0.6 — 0.1 $ 11.8 $ 4.3 $ (5.5 ) |
Segments
Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information. We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines. Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets within this segment are refinish and industrial. Through our Transportation Coatings segment, we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets within this segment are light vehicle and commercial vehicle. Our business serves four end-markets globally as follows: Year Ended December 31, 2017 2016 2015 Performance Coatings Refinish $ 1,645.2 $ 1,679.7 $ 1,698.7 Industrial 1,029.9 718.8 683.1 Total Net sales Performance Coatings 2,675.1 2,398.5 2,381.8 Transportation Coatings Light Vehicle 1,322.8 1,337.7 1,310.6 Commercial Vehicle 355.0 332.6 391.5 Total Net sales Transportation Coatings 1,677.8 1,670.3 1,702.1 Total Net sales $ 4,352.9 $ 4,068.8 $ 4,083.9 Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. Performance Coatings Transportation Coatings Total For the Year ended December 31, 2017 Net sales (1) $ 2,675.1 $ 1,677.8 $ 4,352.9 Equity in earnings in unconsolidated affiliates 0.3 0.7 1.0 Adjusted EBITDA (2) 564.2 321.0 885.2 Investment in unconsolidated affiliates 2.9 12.6 15.5 Performance Coatings Transportation Coatings Total For the Year ended December 31, 2016 Net sales (1) $ 2,398.5 $ 1,670.3 $ 4,068.8 Equity in earnings (losses) in unconsolidated affiliates (0.2 ) 0.4 0.2 Adjusted EBITDA (2) 549.7 352.7 902.4 Investment in unconsolidated affiliates 2.5 11.1 13.6 Performance Coatings Transportation Coatings Total For the Year ended December 31, 2015 Net sales (1) $ 2,381.8 $ 1,702.1 $ 4,083.9 Equity in earnings in unconsolidated affiliates 0.6 0.6 1.2 Adjusted EBITDA (2) 535.8 328.1 863.9 Investment in unconsolidated affiliates 4.0 8.4 12.4 (1) The Company has no intercompany sales between segments. (2) The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (i) non-cash items included within net income, (ii) items the Company does not believe are indicative of ongoing operating performance or (iii) nonrecurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows: Year Ended December 31, 2017 2016 2015 Income before income taxes $ 189.6 $ 82.7 $ 157.9 Interest expense, net 147.0 178.2 196.5 Depreciation and amortization 347.5 322.1 307.7 EBITDA 684.1 583.0 662.1 Debt extinguishment and refinancing related costs (a) 13.4 97.6 2.5 Foreign exchange remeasurement losses (b) 7.4 30.6 93.7 Long-term employee benefit plan adjustments (c) 1.4 1.5 (0.3 ) Termination benefits and other employee related costs (d) 35.3 61.8 36.6 Consulting and advisory fees (e) (0.1 ) 10.4 23.9 Transition-related costs (f) 7.7 — (3.4 ) Offering and transactional costs (g) 18.4 6.0 (1.5 ) Stock-based compensation (h) 38.5 41.1 30.2 Other adjustments (i) 3.6 5.0 (5.8 ) Dividends in respect of noncontrolling interest (j) (3.0 ) (3.0 ) (4.7 ) Deconsolidation impacts and impairments (k) 78.5 68.4 30.6 Adjusted EBITDA $ 885.2 $ 902.4 $ 863.9 (a) During the years ended December 31, 2017 and 2016 we refinanced our indebtedness, resulting in losses of $13.0 million and $88.0 million , respectively. In addition, during the years ended December 31, 2017, 2016 and 2015 we prepaid outstanding principal on our term loans, resulting in non-cash losses on extinguishment of $0.4 million , $9.6 million and $2.5 million , respectively. We do not consider these items to be indicative of our ongoing operating performance. (b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $1.8 million , $23.5 million , $51.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. (c) Eliminates the non-cash, non-service components of long-term employee benefit costs. (d) Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. (e) Represents fees paid to consultants, and associated true-ups to estimates, for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. (f) Represents integration costs related to the 2017 acquisition of the Industrial Wood business that was a carve-out business from Valspar and changes in estimates associated with the transition from DuPont to a standalone entity, including certain Acquisition indemnities. We do not consider these items to be indicative of our ongoing operating performance. (g) Represents acquisition-related expenses, including changes in the fair value of contingent consideration, as well as $10.0 million of costs associated with contemplated merger activities during the three months ended December 31, 2017 and costs associated with the 2016 secondary offerings of our common shares by Carlyle, all of which are not considered indicative of our ongoing operating performance. (h) Represents non-cash costs associated with stock-based compensation, including $8.2 million of expense during the year ended December 31, 2015 attributable to the accelerated vesting of all issued and outstanding stock options issued under the 2013 Plan. This acceleration was the result of the Change in Control that occurred in conjunction with Carlyle's ownership interest falling below 50% and triggering a liquidity event. (i) Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of our ongoing operations, including equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments, Carlyle management fees incurred prior to the Change in Control and non-cash fair value inventory adjustments associated with our business combinations. (j) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements. (k) During the year ended December 31, 2017, we recorded a loss in conjunction with the deconsolidation of our Venezuelan subsidiary of $70.9 million . During the year ended December 31, 2016 and 2015, we recorded non-cash impairments at our Venezuelan subsidiary of $68.4 million and $30.6 million , respectively, associated with our operational long-lived assets and a real estate investment (See Note 25). Additionally, during the year ended December 31, 2017, we recorded non-cash impairment charges related to certain manufacturing facilities previously announced for closure of $7.6 million . We do not consider these to be indicative of our ongoing operating performance. Geographic Area Information: The information within the following tables provides disaggregated information related to our net sales and long-lived assets. Net sales by region were as follows: Year Ended December 31, 2017 2016 2015 North America $ 1,607.7 $ 1,426.7 $ 1,368.6 EMEA 1,538.3 1,455.3 1,425.3 Asia Pacific 748.1 723.9 717.4 Latin America 458.8 462.9 572.6 Total (a) 4,352.9 4,068.8 4,083.9 Net long-lived assets by region were as follows: Year Ended December 31, 2017 2016 North America $ 457.9 $ 419.3 EMEA 507.4 456.9 Asia Pacific 258.9 248.0 Latin America 164.4 191.5 Total (b) $ 1,388.6 $ 1,315.7 (a) Net Sales are attributed to countries based on location of the customer. Sales to external customers in China represented approximately 12% , 13% and 13% of the total for the years ended December 31, 2017 , 2016 and 2015 , respectively. Sales to external customers in Germany represented approximately 8% , 9% and 9% of the total for the years ended December 31, 2017 , 2016 and 2015 , respectively. Mexico represented 6% of the total for the years ended December 31, 2017 , 2016 and 2015 . Canada, which is included in the North America region, represents approximately 4% , 4% and 3% of total net sales for the year ended December 31, 2017 , 2016 and 2015 , respectively. (b) Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $279.0 million and $262.2 million in the years ended December 31, 2017 and 2016 , respectively. China long-lived assets amounted to $217.2 million and $204.0 million in the years ended December 31, 2017 and 2016 , respectively. Brazil long-lived assets amounted to approximately $78.6 million and $94.9 million in the years ended December 31, 2017 and 2016 , respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $25.8 million and 20.0 million in the years ended December 31, 2017 and 2016 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE LOSS Unrealized Currency Translation Adjustments Pension Plan Adjustments Unrealized Gain on Securities Unrealized Gain (Loss) on Derivatives Accumulated Other Comprehensive Loss Balance, December 31, 2016 $ (292.2 ) $ (56.6 ) $ 0.4 $ (2.0 ) $ (350.4 ) Current year deferrals to AOCI 83.4 17.1 0.4 (1.6 ) 99.3 Reclassifications from AOCI to Net income — 8.1 — 2.0 10.1 Net Change 83.4 25.2 0.4 0.4 109.4 Balance, December 31, 2017 $ (208.8 ) $ (31.4 ) $ 0.8 $ (1.6 ) $ (241.0 ) Included in the reclassification from AOCI to net income was a pension plan adjustment related to the deconsolidation of our Venezuelan subsidiary and the corresponding write-off of the accumulated actuarial loss on our Venezuela pension plan. This resulted in a decrease of $5.9 million in AOCI, inclusive of $2.6 million of tax benefits, and is discussed further in Note 25. The cumulative income tax benefit related to the adjustments for pension benefits at December 31, 2017 was $13.0 million . The cumulative income tax benefit related to the adjustments for unrealized gain on derivatives at December 31, 2017 was $0.6 million . Unrealized Currency Translation Adjustments Pension Plan Unrealized Gain on Securities Unrealized Accumulated Other Comprehensive Loss Balance, December 31, 2015 $ (232.8 ) $ (33.4 ) $ 0.1 $ (3.2 ) $ (269.3 ) Current year deferrals to AOCI (59.4 ) (22.3 ) 0.3 (2.5 ) (83.9 ) Reclassifications from AOCI to Net income — (0.9 ) — 3.7 2.8 Net Change (59.4 ) (23.2 ) 0.3 1.2 (81.1 ) Balance, December 31, 2016 $ (292.2 ) $ (56.6 ) $ 0.4 $ (2.0 ) $ (350.4 ) The cumulative income tax benefit related to the adjustments for pension benefits at December 31, 2016 was $19.1 million . The cumulative income tax benefit related to the adjustments for unrealized gain on derivatives at December 31, 2016 was $1.1 million . Unrealized Currency Translation Adjustments Pension and Other Long-term Employee Benefit Adjustments Unrealized Unrealized Gain (Loss) on Derivatives Accumulated Other Comprehensive Loss Balance, December 31, 2014 $ (72.1 ) $ (31.2 ) $ (0.2 ) $ 0.2 $ (103.3 ) Current year deferrals to AOCI (160.7 ) (4.3 ) 0.3 0.6 (164.1 ) Reclassifications from AOCI to Net income — 2.1 — (4.0 ) (1.9 ) Net Change (160.7 ) (2.2 ) 0.3 (3.4 ) (166.0 ) Balance, December 31, 2015 $ (232.8 ) $ (33.4 ) $ 0.1 $ (3.2 ) $ (269.3 ) The cumulative income tax benefit related to the adjustments for pension and other long-term employee benefits at December 31, 2015 was $13.4 million . The cumulative income tax benefit related to the adjustments for unrealized gain on derivatives at December 31, 2015 were $1.9 million . |
Venezuela
Venezuela | 12 Months Ended |
Dec. 31, 2017 | |
Foreign Currency [Abstract] | |
Venezuela | VENEZUELA During the year ended December 31, 2017, we concluded there was an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. This lack of exchangeability restricted our Venezuelan subsidiary's ability to pay dividends or settle intercompany obligations, which severely limited our ability to realize the benefits from earnings of our Venezuelan operations and access the resulting liquidity provided by those earnings. Based on the fact that we believe this lack of exchangeability will continue, the continued political unrest, the recent drop in demand for our business and the expected losses we were forecasting for the foreseeable future, we concluded that we no longer met the accounting criteria of control in order to continue consolidating our Venezuelan operations and began accounting for our investments in our Venezuelan subsidiary under the cost method of accounting. As a result of this change, we recorded a loss of $70.9 million on our consolidated statement of operations. This loss was comprised of the subsidiary's net assets for $30.0 million , counterparty intercompany receivables with our Venezuela subsidiary for $35.0 million and unrealized actuarial losses associated with pension plans in AOCI of $5.9 million . The value of the cost investment and all previous intercompany balances are now recorded at zero as of December 31, 2017. Further, our consolidated balance sheet and statement of operations will no longer include the results of our Venezuelan operations. We will recognize income only to the extent that we are paid for inventory we sell or receive cash dividends from our Venezuelan legal entity. For the years ended December 31, 2017, 2016 and 2015, our Venezuelan subsidiary's net sales represented $2.5 million , $50.8 million and $131.2 million of our consolidated net sales, respectively. For the years ended December 31, 2017, 2016 and 2015, our Venezuelan subsidiary represented a loss of $2.8 million , a loss of $36.5 million and income of $63.0 million of our consolidated income from operations, respectively. For the years ended December 31, 2017, 2016 and 2015, our Venezuelan subsidiary represented net losses of $5.8 million , $68.5 million and $32.0 million of our consolidated net income, respectively. During the year ended December 31, 2016, the Company recorded an impairment charge on operating assets of $57.9 million , comprised of a $49.3 million write-down to customer relationship intangibles and an $8.6 million write-down to the net book value of our property, plant and equipment. The impairment charge was recorded within income from operations on the consolidated statement of operations, with $30.6 million and $27.3 million allocated to our Performance Coatings and Transportation Coatings operating segments, respectively. In addition, during the years ended December 31, 2016 and 2015 we recorded impairment losses of $10.5 million and $30.6 million , respectively, at our Venezuelan subsidiary to write down the carrying value of a real estate investment to its fair value. The method used to determine fair values for both assets included using Level 2 inputs in the form of a sale and purchase agreement for the certain manufacturing assets and observable market quotes from local real estate broker service firms for the Venezuela real estate investment. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following is a summary of the quarterly results of operations for the years ended December 31, 2017 and 2016 , respectively (in millions, except per share data): 2017 March 31 June 30 (2) September 30 December 31 (3) Full Year Total revenue $ 1,013.7 $ 1,094.6 $ 1,096.3 $ 1,172.4 $ 4,377.0 Cost of goods sold 641.1 690.0 702.5 746.0 2,779.6 Net income (loss) 65.9 (18.9 ) 56.3 (55.6 ) 47.7 Net income (loss) attributable to controlling interests 64.1 (20.8 ) 54.9 (61.5 ) 36.7 Basic net income (loss) per share 0.27 (0.09 ) 0.23 (0.26 ) 0.15 Diluted net income (loss) per share 0.26 (0.09 ) 0.22 (0.26 ) 0.15 2016 (1) March 31 June 30 (2) September 30 December 31 (4) Full Year Total revenue $ 963.2 $ 1,070.6 $ 1,026.3 $ 1,032.6 $ 4,092.7 Cost of goods sold 606.4 649.0 630.4 641.8 2,527.6 Net income (loss) 32.8 52.3 (5.4 ) (35.1 ) 44.6 Net income (loss) attributable to controlling interests 31.9 50.7 (6.6 ) (37.2 ) 38.8 Basic net income (loss) per share 0.13 0.21 (0.03 ) (0.16 ) 0.16 Diluted net income (loss) per share 0.13 0.21 (0.03 ) (0.16 ) 0.16 (1) The results include the impact of revenue corrections which revised previously reported financial data in all interim periods during the year ended December 31, 2016. See further discussion in Note 2. (2) During the three months ended June 30, 2017, the Company recorded a loss in conjunction with the deconsolidation of its Venezuelan subsidiary of $70.9 million . During the three months ended June 30, 2016, the Company recorded an impairment charge of $10.5 million , based on our evaluation of the carrying value associated with our real estate investment in Venezuela. See further discussion in Note 25. (3) During the three months ended December 31, 2017, the Company recorded a provisional net tax charge of $107.8 million ( $112.5 million of net loss attributable to controlling interests) associated with the U.S. Tax Cuts and Jobs Act legislation, resulting primarily from the write-down of net deferred tax assets to the lower enacted U.S. corporate tax rate of 21%. The provisionally estimated net tax charge reflects Axalta's current estimate of the new legislation’s impact, which may differ with further regulatory guidance, changes in Axalta's current interpretations and assumptions. Also during the three months ended December 31, 2017, we recorded restructuring costs associated with our Axalta Way initiatives of $28.7 million . (4) During the three months ended December 31, 2016, the Company recorded an impairment charge of $57.9 million , based on our evaluation of the carrying value associated with our long-lived operating assets in Venezuela. See further discussion in Note 25. Also during the three months ended December 31, 2016, we recorded restructuring costs associated with our Axalta Way initiatives for $36.6 million . |
Schedule II
Schedule II | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Allowance for Doubtful Accounts for the years ended December 31: (in millions) Balance at Beginning of Year Additions Deductions (1) Balance at End of Year 2017 $ 13.7 3.5 (1.3 ) $ 15.9 2016 10.7 3.4 (0.4 ) 13.7 2015 $ 9.9 4.9 (4.1 ) $ 10.7 (1) Deductions include uncollectible accounts written off and foreign currency translation impact. Deferred tax asset valuation allowances for the years ended December 31: (in millions) Balance at Beginning of Year Additions (1) Deductions (1) Balance at End of Year 2017 $ 135.4 78.8 — $ 214.2 2016 127.8 9.6 (2.0 ) 135.4 2015 $ 101.9 34.4 (8.5 ) $ 127.8 (1) Additions and deductions include charges to goodwill and foreign currency translation impact. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | The consolidated financial statements of Axalta and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. The estimates and assumptions include, but are not limited to, receivable and inventory valuations, fixed asset valuations, valuations of goodwill and identifiable intangible assets, including analysis of impairment, valuations of long-term employee benefit obligations, income taxes, environmental matters, litigation, stock-based compensation, restructuring, and allocations of costs. Our estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. Actual results could differ materially from those estimates. |
Business Combinations Policy | Accounting for Business Combinations We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets, including separately identifiable intangible assets and assumed liabilities at their acquisition date fair values. The method records any excess purchase price over the fair value of acquired net assets as goodwill. Included in the determination of the purchase price is the fair value of contingent consideration, if applicable, based on the terms and applicable targets described within the acquisition agreements (e.g., projected revenues or EBITDA). Subsequent to the acquisition date, the fair value of the liability, if determined to be payable in cash, is revalued at each balance sheet date with adjustments recorded within earnings. The determination of the fair value of assets acquired, liabilities assumed, and noncontrolling interests involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the closing date of the acquisition. When necessary, we consult with external advisors to help determine fair value. For non-observable market values determined using Level 3 assumptions, we determine fair value using acceptable valuation principles, including most commonly the excess earnings method for customer relationships, relief from royalty method for technology and trademarks, cost method for inventory and a combination of cost and market methods for property, plant and equipment, as applicable. We included the results of operations from the acquisition date in the financial statements for all businesses acquired. |
Consolidation, Policy | Principles of Consolidation The consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company’s ownership is less than 100% , the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which Axalta, directly or indirectly, owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, Axalta’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statements of operations and our share of these companies’ stockholders’ equity is included in the accompanying consolidated balance sheet. We eliminated all intercompany accounts and transactions in the preparation of the accompanying consolidated financial statements. |
Revenue Recognition, Policy | Revenue Recognition We recognize revenue after completing the earnings process. We recognize revenue from the sale of products to our customers when risk of loss and ownership of the product transfers to the customer. Ownership transfers either upon shipment of the product or when the product is delivered. For a majority of our product sales, risk or loss and ownership transfers at the shipping point and delivery is considered complete. For certain OEM customers, revenue is recognized at the time the customer applies our coatings to its vehicles, as this represents the point in time that risk of loss has been transferred and delivery is considered complete. In regard to our refinish end-market, risk of loss passes upon the sale to our distribution customers. Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions may be given to our distribution customers and certain collision repair body shops, which we estimate and record as a reduction to net sales upon the sale to our distribution customers. We accrue for sales returns and other allowances based on our historical experience. We incur up-front costs in order to obtain contracts with certain customers, referred to as Business Incentive Plan assets ("BIPs"). We capitalized these up-front costs as a component of other assets and amortize the related amounts over the estimated life of the contract as a reduction of net sales. The Company receives volume commitments and/or sole supplier status from its customers over the life of the contractual arrangements, which approximates a five -year weighted average useful life. The termination clauses in these contractual arrangements include standard clawback provisions that enable the Company to collect monetary damages in the event of a customer’s failure to meet its commitments under the relevant contract. As of December 31, 2017 and 2016, $173.0 million and $170.8 million , respectively, were capitalized within other assets on the consolidated balance sheets. For the years ended December 31, 2017 , 2016 and 2015 , $65.0 million , $53.5 million and $50.6 million , respectively, were amortized and reflected as reductions of net sales in the consolidated statements of operations. We include the amounts billed to customers for shipping and handling fees in net sales and costs incurred for the delivery of goods as cost of goods sold in the statement of operations. Recognition for licensing and royalty income occurs in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents Cash equivalents represent highly liquid investments considered readily convertible to known amounts of cash within three months or less from time of purchase. They are carried at cost plus accrued interest, which approximates fair value because of the short-term maturity of these instruments. Cash balances may exceed government insured limits in certain jurisdictions. |
Fair Value Measurement, Policy | Fair Value Measurements GAAP defines a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following valuation techniques are used to measure fair value for assets and liabilities: Level 1—Quoted market prices in active markets for identical assets or liabilities; Level 2—Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and Level 3—Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability. |
Derivatives, Policy | Derivatives and Hedging The Company from time to time utilizes derivatives to manage exposures to currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or accumulated other comprehensive income (loss) ("AOCI"), depending on the use of the derivative and whether it qualifies for hedge accounting treatment and is designated as such. Gains and losses on derivatives that qualify and are designated as cash flow hedging instruments are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income. Gains and losses on derivatives qualifying and designated as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income. Cash flows from derivatives are recognized in the consolidated statements of cash flows in a manner consistent with the underlying transactions. |
Receivables, Policy | Receivables and Allowance for Doubtful Accounts Receivables are recognized net of an allowance for doubtful accounts receivable. The allowance for doubtful accounts receivable reflects the best estimate of losses inherent in the accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written down or off when a portion or all of such account receivable is determined to be uncollectible. |
Inventory, Policy | Inventories Inventories are valued at the lower of cost or net realizable value with cost being determined on the weighted average cost method. Elements of cost in inventories include: • raw materials, • direct labor, and • manufacturing and indirect overhead. Stores and supplies are valued at the lower of cost or net realizable value; cost is generally determined by the weighted average cost method. Inventories deemed to have costs greater than their respective market values are reduced to net realizable value with a loss recorded in income in the period recognized. |
Property, Plant and Equipment, Policy | Property, Plant and Equipment Property, plant and equipment acquired in an acquisition are recorded at fair value as of the acquisition date and are depreciated over the estimated useful life using the straight-line method. Subsequent additions to property, plant and equipment, including the fair value of any asset retirement obligations upon initial recognition of the liability, are recorded at cost and are depreciated over the estimated useful life using the straight-line method. See Note 16 for a range of estimated useful lives used for each property, plant and equipment class. Software included in property, plant and equipment represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance and training costs are expensed in the period in which they are incurred. |
Goodwill and Intangible Assets, Policy | Goodwill and Other Identifiable Intangible Assets Goodwill represents the excess of purchase price over the fair values of underlying net assets acquired in an acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis as of October 1; however, these tests are performed more frequently if events or changes in circumstances indicate that the asset may be impaired. The fair value methodology is based on prices of similar assets or other valuation methodologies including discounted cash flow techniques. When testing goodwill and indefinite-lived intangible assets for impairment, we first have an option to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50% ) that an impairment exists. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. In the event the qualitative assessment indicates that an impairment is more likely than not, we would be required to perform a quantitative impairment test, otherwise no further analysis is required. We may elect to bypass the qualitative assessment for some or all of our reporting units and indefinite-lived intangible assets and perform a two-step quantitative test. Under the quantitative goodwill impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, then individual assets (including identifiable intangible assets) and liabilities of the reporting unit are estimated at fair value. The excess of the estimated fair value of the reporting unit over the estimated fair value of its net assets would establish the implied value of goodwill. The excess of the recorded amount of goodwill over the implied value is then charged to earnings as an impairment loss. Definite-lived intangible assets, such as technology, trademarks, customer relationships and non-compete agreements are amortized over their estimated useful lives, generally for periods ranging from two to 20 years . The reasonableness of the useful lives of these assets is regularly evaluated. Once these assets are fully amortized, they are removed from the balance sheet. We evaluate these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable. |
Impairment or Disposal of Long-Lived Assets, Policy | Impairment of Long-Lived Assets The carrying value of long-lived assets to be held and used is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the asset are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The fair value methodology used is an estimate of fair market value and is based on prices of similar assets or other valuation methodologies including present value techniques. Long-lived assets to be disposed of other than by sale are classified as held for use until their disposal. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived assets classified as held for sale. |
Research, Development, and Computer Software, Policy | Research and Development Research and development costs incurred in the normal course of business consist primarily of employee-related costs and are expensed as incurred. In process research and development projects acquired in a business combination are recorded as intangible assets at their fair value as of the acquisition date, using Level 3 assumptions. Subsequent costs related to acquired in process research and development projects are expensed as incurred. Research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. These indefinite-lived intangible assets are tested for impairment consistent with the impairment testing performed on other indefinite-lived intangible assets discussed above. Upon completion of the research and development process, the carrying value of acquired in process research and development projects is reclassified as a finite-lived asset and is amortized over its useful life. |
Environmental Costs, Policy | Environmental Liabilities and Expenditures Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued environmental liabilities are not discounted. Claims for recovery from third parties, if any, are reflected separately as an asset. We record recoveries at the earlier of when the gain is probable and reasonably estimable, or realized. For the years ending December 31, 2017 , 2016 and 2015 , we have not recognized income associated with recoveries from third parties. Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized and depreciated. |
Commitments and Contingencies, Policy | Litigation We accrue for liabilities related to litigation matters when available information indicates that the liability is probable and the amount can be reasonably estimated. Legal costs such as outside counsel fees and expenses are charged to expense in the period incurred. |
Income Tax, Policy | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for operating losses, interest and tax credit carry forwards. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income in the period that includes the enactment date. Where we do not intend to indefinitely reinvest earnings of our subsidiaries, we provide for income taxes and withholding taxes, where applicable, on unremitted earnings. We do not provide for income taxes on unremitted earnings of our subsidiaries that are intended to be indefinitely reinvested. We recognize the benefit of an income tax position only if it is "more likely than not" that the tax position will be sustained. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized. Additionally, we recognize interest and penalties accrued related to unrecognized tax benefits as a component of provision for income taxes. The current portion of unrecognized tax benefits is included in "Income taxes payable" and the long-term portion is included in the long-term income tax payable in the accompanying consolidated balance sheets. |
Foreign Currency Transactions and Translations Policy | Foreign Currency Translation The reporting currency is the U.S. dollar. In most cases, our non-U.S. based subsidiaries use their local currency as the functional currency for their respective business operations. Assets and liabilities of these operations are translated into U.S. dollars at end-of-period exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Resulting cumulative translation adjustments are recorded as a component of shareholders’ equity in the accompanying consolidated balance sheet in AOCI. Gains and losses from transactions denominated in currencies other than the functional currencies are included in the consolidated statement of operations in other expense, net. |
Pension and Other Postretirement Plans, Pensions, Policy | Employee Benefits Defined benefit plans specify an amount of pension benefit that an employee will receive upon retirement, usually dependent on factors such as age, years of service and compensation. The net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of the future benefits that employees have earned in return for their service in the current and prior periods. These benefits are then discounted to determine the present value of the obligations and are then adjusted for the impact of any unamortized prior service costs. The discount rate used is based upon market indicators in the region (generally, the yield on bonds that are denominated in the currency in which the benefits will be paid) and that have maturity dates approximating the terms of the obligations. The calculations are performed by qualified actuaries using the projected unit credit method. |
Share-based Compensation, Option and Incentive Plans Policy | Stock-Based Compensation Our stock-based compensation is comprised of Axalta stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units and are measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a graded-vesting attribution basis over the requisite service period. Compensation expense is recorded net of forfeitures, which we have elected to record in the period they occur. |
Earnings Per Share, Policy | Earnings per Common Share Basic earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities; anti-dilutive securities are excluded from the calculation. These potentially dilutive securities are calculated under the treasury stock method and consist of stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units. |
New Accounting Pronouncements, Policy | Accounting Guidance Issued But Not Yet Adopted In March 2017, the FASB issued Accounting Standard Update ("ASU") 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The impacts to the accompanying consolidated statement of operations for the years ended December 31, 2017 and 2016, as will be presented in our Annual Report on Form 10-K for the year ended December 31, 2018, will result in reclassifications from cost of goods sold and selling, general and administrative expense to other expense, net. These reclassifications will not have a material impact to the individual line items on the consolidated statement of operations for the impacted periods. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test requiring an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified in our reporting units. In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business", which sets forth the accounting guidance that assists in the determination of whether a set of transferred assets and activities is a business. This new guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business; whereas, if the threshold is not met, the entity evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue guidance. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. This standard is expected to have a prospective impact on our assessment of future acquisitions to determine whether the acquired entity requires accounting as an acquired asset (or group of similar identifiable assets) or as a business combination. In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize the assets and liabilities arising from all leases (both finance and operating) on the balance sheet. In addition to this main provision, this standard included a number of additional changes to lease accounting. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows. Total assets and total liabilities will increase in the period of adoption. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. Subsequent updates applicable to the revenue recognition standard, including ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing", provide narrow scope improvements and clarifications. This standard was initially intended to be effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date", which delayed the previous effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We have elected to implement the standard using the modified retrospective method whereby, for contracts which we conclude our performance obligation has been met under the terms of this standard as of the date of initial application, January 1, 2018, we will record a one-time catch up of the net earnings impact to retained earnings on our consolidated balance sheet and consolidated statement of changes in shareholders’ equity of approximately $12 million . The impacts to be reflected at this date represent the net income attributable to certain arrangements primarily within our Transportation Coatings segment for which we determine our performance obligation has been satisfied at the point effective control over inventory has transferred to the customer upon delivery under this standard, as compared to consumption under current GAAP. The election to implement this standard using the modified retrospective method will also require our future disclosures to include the amount by which each financial statement line item is affected as compared with these line items reported under current GAAP to ensure comparability with historical financial statements. We have reviewed our sales contracts and practices as compared to the new guidance and have concluded on the population of affected contracts and implementation plan, as well as our assessment of procedural and policy requirements related to the provisions of this standard. Additionally, under the provisions of this standard, certain costs currently reported in selling, general and administrative costs will be reported within cost of goods sold on the consolidated statements of operations, as they represent costs incurred in satisfaction of performance obligations. Such items will not impact pre-tax operating results. We are currently evaluating the expanded disclosures necessary to be in compliance with this standard, including expanded disclosures regarding significant judgments and estimates involved in the determination of the transaction price, variable consideration and timing of satisfaction of performance obligations. |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.3 million , which was comprised of the following: June 1, 2017 (As Initially Reported) Measurement Period Adjustments June 1, 2017 (As Adjusted) Accounts and notes receivable—trade $ 23.3 $ — $ 23.3 Inventories 24.9 (0.2 ) 24.7 Prepaid expenses and other 0.2 — 0.2 Property, plant and equipment 23.0 0.1 23.1 Identifiable intangibles 254.2 4.9 259.1 Accounts payable (22.4 ) 0.2 (22.2 ) Other accrued liabilities (5.1 ) 0.4 (4.7 ) Net assets acquired before goodwill on acquisition 298.1 5.4 303.5 Goodwill on acquisition 132.6 (5.8 ) 126.8 Net assets acquired $ 430.7 $ (0.4 ) $ 430.3 |
Business Acquisition, Pro Forma Information | The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016: For the years ended (in millions, except per share data) December 31, 2017 December 31, 2016 Net sales $ 4,454.2 $ 4,293.1 Net income $ 55.0 $ 45.9 Net income attributable to controlling interests $ 44.0 $ 40.1 Net income per share (Basic) $ 0.18 $ 0.17 Net income per share (Diluted) $ 0.18 $ 0.16 |
Goodwill and Identifiable Int38
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Line Items] | |
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2015 to December 31, 2017 by reportable segment: Performance Coatings Transportation Coatings Total December 31, 2015 $ 869.0 $ 62.3 $ 931.3 Goodwill from acquisitions 64.2 15.5 79.7 Foreign currency translation (43.8 ) (3.1 ) (46.9 ) December 31, 2016 $ 889.4 $ 74.7 $ 964.1 Goodwill from acquisitions 207.2 — 207.2 Purchase accounting adjustments (15.2 ) — (15.2 ) Foreign currency translation 107.8 7.3 115.1 December 31, 2017 $ 1,189.2 $ 82.0 $ 1,271.2 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class | The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average amortization periods (years) Technology $ 498.0 $ (213.6 ) $ 284.4 10.5 Trademarks—indefinite-lived 277.2 — 277.2 Indefinite Trademarks—definite-lived 102.6 (17.7 ) 84.9 15.9 Customer relationships 945.1 (176.8 ) 768.3 19.0 Other 16.6 (3.2 ) 13.4 4.8 Total $ 1,839.5 $ (411.3 ) $ 1,428.2 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average amortization periods (years) Technology $ 417.1 $ (153.6 ) $ 263.5 10.2 Trademarks—indefinite-lived 273.2 — 273.2 Indefinite Trademarks—definite-lived 55.0 (11.4 ) 43.6 14.8 Customer relationships 672.6 (123.3 ) 549.3 18.7 Other 2.4 (1.7 ) 0.7 4.6 Total $ 1,420.3 $ (290.0 ) $ 1,130.3 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is: 2018 $ 110.8 2019 $ 109.5 2020 $ 109.3 2021 $ 108.7 2022 $ 106.5 |
In Process Research and Development [Member] | |
Goodwill [Line Items] | |
Schedule of Indefinite-Lived Intangible Assets | Activity related to in-process research and development projects, classified within technology assets, for the years ended December 31, 2016 and 2017 is as follows: In Process Research and Development Activity Balance at December 31, 2015 $ 1.6 Completed — Abandoned — Acquired — Foreign currency translation (0.1 ) Balance at December 31, 2016 $ 1.5 Completed — Abandoned (1.7 ) Acquired 2.3 Foreign currency translation 0.2 Balance at December 31, 2017 $ 2.3 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity related to the restructuring reserves and expenses for the years ended December 31, 2017 , 2016 and 2015 : Balance at December 31, 2014 $ 48.5 Expense recorded 31.9 Payments made (33.8 ) Foreign currency translation (5.3 ) Balance at December 31, 2015 $ 41.3 Expense recorded 58.5 Payments made (31.0 ) Foreign currency translation (2.7 ) Balance at December 31, 2016 $ 66.1 Expense recorded 36.2 Payments made (36.1 ) Foreign currency translation 6.8 Venezuela deconsolidation impact (1.5 ) Balance at December 31, 2017 $ 71.5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Sale Leaseback Transactions [Table Text Block] | The table below reflects the total remaining cash payments related to both transactions during the rental term as of December 31, 2017 : Sale-leaseback obligations 2018 $ 5.3 2019 5.4 2020 5.4 2021 5.5 2022 5.8 Thereafter 83.4 Total minimum payments $ 110.8 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At December 31, 2017 , future minimum payments under non-cancelable operating leases were as follows: Operating Leases 2018 $ 41.8 2019 26.6 2020 19.4 2021 14.9 2022 11.8 Thereafter 20.2 Total minimum payments $ 134.7 |
Long-term Employee Benefits (Ta
Long-term Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The following table sets forth the changes to the projected benefit obligations ("PBO") and plan assets for the years ended December 31, 2017 and 2016 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2017 and 2016 for our defined benefit pension plans: Year Ended December 31, 2017 2016 Change in benefit obligation: Projected benefit obligation at beginning of year $ 547.6 $ 541.7 Service cost 9.0 10.7 Interest cost 13.8 15.1 Participant contributions 1.3 1.0 Actuarial losses (gains), net (13.8 ) 57.4 Plan curtailments, settlements and special termination benefits (12.9 ) (2.0 ) Benefits paid (23.3 ) (21.8 ) Business combinations and other adjustments 51.2 — Currency translation adjustment 64.0 (54.5 ) Projected benefit obligation at end of year 636.9 547.6 Change in plan assets: Fair value of plan assets at beginning of year 288.7 278.4 Actual return on plan assets 22.2 41.1 Employer contributions 27.4 27.0 Participant contributions 1.3 1.0 Benefits paid (23.3 ) (21.8 ) Settlements (13.9 ) (1.2 ) Business combinations and other adjustments 32.4 — Currency translation adjustment 30.2 (35.8 ) Fair value of plan assets at end of year 365.0 288.7 Funded status, net $ (271.9 ) $ (258.9 ) Amounts recognized in the consolidated balance sheets consist of: Other assets $ 19.2 $ 0.3 Other accrued liabilities (12.0 ) (10.1 ) Accrued pensions (279.1 ) (249.1 ) Net amount recognized $ (271.9 ) $ (258.9 ) |
Schedule of Accumulated and Projected Benefit Obligations | The following table reflects the ABO for all defined benefit pension plans as of December 31, 2017 and 2016 . Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets. Year Ended December 31, 2017 2016 ABO $ 605.4 $ 516.4 Plans with PBO in excess of plan assets: PBO $ 401.2 $ 542.6 ABO $ 370.0 $ 511.6 Fair value plan assets $ 110.1 $ 283.4 Plans with ABO in excess of plan assets: PBO $ 393.3 $ 488.2 ABO $ 364.9 $ 461.3 Fair value plan assets $ 104.7 $ 232.6 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The pre-tax amounts not yet reflected in net periodic benefit cost and included in AOCI include the following related to defined benefit plans: Year Ended December 31, 2017 2016 Accumulated net actuarial losses $ (46.4 ) $ (76.6 ) Accumulated prior service credit 2.6 0.9 Total $ (43.8 ) $ (75.7 ) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The estimated pre-tax amounts that are expected to be amortized from AOCI into net periodic benefit cost during 2018 for the defined benefit plans is as follows: 2018 Amortization of net actuarial losses $ (1.2 ) Amortization of prior service credit 0.1 Total $ (1.1 ) |
Schedule of Net Benefit Costs | The following table sets forth the pre-tax components of net periodic benefit costs for our defined benefit plans for the years ended December 31, 2017 , 2016 and 2015 . Year Ended December 31, 2017 2016 2015 Components of net periodic benefit cost and amounts recognized in comprehensive (income) loss: Net periodic benefit cost: Service cost $ 9.0 $ 10.7 $ 12.0 Interest cost 13.8 15.1 16.9 Expected return on plan assets (15.0 ) (12.6 ) (14.6 ) Amortization of actuarial loss, net 1.4 0.4 0.4 Amortization of prior service credit — — (0.1 ) Curtailment gain — (1.1 ) — Settlement (gain) loss 0.2 (0.5 ) 0.5 Special termination benefit loss 1.0 0.2 — Net periodic benefit cost 10.4 12.2 15.1 Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: Net actuarial (gain) loss, net (20.6 ) 27.7 (3.4 ) Amortization of actuarial loss, net (1.4 ) (0.4 ) (0.4 ) Prior service (credit) cost (1.2 ) — 2.7 Amortization of prior service credit — — 0.1 Curtailment gain — 1.1 — Settlement gain (loss) (0.2 ) 0.5 (0.5 ) Other adjustments (7.9 ) — — Total (gain) loss recognized in other comprehensive (income) loss (31.3 ) 28.9 (1.5 ) Total recognized in net periodic benefit cost and comprehensive (income) loss $ (20.9 ) $ 41.1 $ 13.6 |
Schedule of Assumptions Used | We used the following assumptions in determining the benefit obligations and net periodic benefit cost of our defined benefit plans: 2017 2016 2015 Weighted-average assumptions: Discount rate to determine benefit obligation 2.13 % 2.52 % 3.05 % Discount rate to determine net cost 2.52 % 3.05 % 3.23 % Rate of future compensation increases to determine benefit obligation 2.69 % 3.07 % 3.03 % Rate of future compensation increases to determine net cost 3.07 % 3.03 % 3.57 % Rate of return on plan assets to determine net cost 4.73 % 4.75 % 5.21 % |
Schedule of Expected Benefit Payments | The following reflects the total benefit payments expected to be paid for defined benefits: Year ended December 31, Benefits 2018 $ 29.7 2019 $ 32.2 2020 $ 32.2 2021 $ 31.1 2022 $ 32.1 2023—2027 $ 189.0 |
Schedule of Allocation of Plan Assets | The table below summarizes the weighted average actual and target pension plan asset allocations at December 31 for all funded Axalta defined benefit plans. Asset Category 2017 2016 Target Allocation Equity securities 25-30% 30-35% 25-30% Debt securities 20-25% 35-40% 20-25% Real estate 0-5% 0-5% 0-5% Other 45-50% 25-30% 45-50% The table below presents the fair values of the defined benefit pension plan assets by level within the fair value hierarchy, as described in Note 3, at December 31, 2017 and 2016 , respectively. Fair value measurements at December 31, 2017 Total Level 1 Level 2 Level 3 Asset Category: Cash and cash equivalents $ 3.7 $ 3.7 $ — $ — U.S. equity securities 33.3 33.0 — 0.3 Non-U.S. equity securities 76.4 73.4 1.2 1.8 Debt securities—government issued 44.6 33.1 7.3 4.2 Debt securities—corporate issued 32.8 17.2 13.1 2.5 Private market securities and other 141.2 2.7 2.8 135.7 Real estate investments 13.5 — — 13.5 Total $ 345.5 $ 163.1 $ 24.4 $ 158.0 Debt asset backed securities at NAV 10.9 Hedge funds at NAV 8.6 $ 365.0 Fair value measurements at December 31, 2016 Total Level 1 Level 2 Level 3 Asset Category: Cash and cash equivalents $ 2.8 $ 2.8 $ — $ — U.S. equity securities 30.7 30.7 — — Non-U.S. equity securities 63.9 63.5 0.3 0.1 Debt—government issued 60.9 48.0 12.9 — Debt—corporate issued 38.4 31.0 5.3 2.1 Private market securities and other 64.6 0.4 0.1 64.1 Real estate investments 11.2 — — 11.2 Total $ 272.5 $ 176.4 $ 18.6 $ 77.5 Debt asset backed securities at NAV 8.8 Hedge funds at NAV 7.4 $ 288.7 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The table below presents a roll forward of activity for these assets for the years ended December 31, 2017 and 2016 . Level 3 assets Total Private market securities Debt and equity Real estate investments Ending balance at December 31, 2015 $ 74.1 $ 63.3 $ 2.3 $ 8.5 Realized (loss) — — — — Change in unrealized gain 1.3 (1.4 ) (0.1 ) 2.8 Purchases, sales, issues and settlements 2.1 2.2 — (0.1 ) Transfers in/(out) of Level 3 — — — — Ending balance at December 31, 2016 $ 77.5 $ 64.1 $ 2.2 $ 11.2 Realized (loss) — — — — Change in unrealized gain 9.9 8.3 0.4 1.2 Purchases, sales, issues and settlements 70.6 63.3 6.2 1.1 Transfers in/(out) of Level 3 — — — — Ending balance at December 31, 2017 $ 158.0 $ 135.7 $ 8.8 $ 13.5 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Principal weighted average assumptions used in applying the Black-Scholes model were as follows: 2017 Grants 2016 Grants 2015 Grants Expected Term 6.0 years 6.0 years 6.0 years Volatility 21.75 % 21.63 % 22.19 % Dividend Yield — — — Discount Rate 2.03 % 1.45 % 1.79 % |
Schedule of Stock Options Roll Forward | A summary of stock option award activity as of and for the year ended December 31, 2017 is presented below: Awards (in millions) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (years) Outstanding at December 31, 2016 9.6 $ 14.40 Granted 0.9 $ 29.56 Exercised (2.2 ) $ 11.42 Forfeited (0.2 ) $ 28.29 Outstanding at December 31, 2017 8.1 $ 16.54 Vested and expected to vest at December 31, 2017 8.1 $ 16.54 $ 128.3 6.52 Exercisable at December 31, 2017 6.3 $ 13.25 $ 119.9 5.96 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of restricted stock and restricted stock unit award activity as of December 31, 2017 is presented below: Awards (in millions) Weighted-Average Fair Value Outstanding at December 31, 2016 2.3 $ 29.18 Granted 0.8 $ 30.10 Vested (1.0 ) $ 30.02 Forfeited (0.2 ) $ 27.21 Outstanding at December 31, 2017 1.9 $ 29.32 |
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | A summary of performance stock and performance share unit award activity as of December 31, 2017 is presented below: Awards (in millions) Weighted-Average Fair Value Outstanding at December 31, 2016 0.3 $ 27.74 Granted 0.3 $ 38.11 Vested — $ — Forfeited — $ — Outstanding at December 31, 2017 0.6 $ 31.17 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Year Ended December 31, 2017 2016 2015 Foreign exchange losses, net $ 7.4 $ 30.6 $ 93.7 Impairments 7.6 10.5 30.6 Debt extinguishment and refinancing related costs 13.4 97.6 2.5 Other miscellaneous expense (income), net (2.7 ) 4.0 (15.6 ) Total $ 25.7 $ 142.7 $ 111.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Domestic and Foreign Components of Income Before Income Taxes Year Ended December 31, 2017 2016 2015 Domestic $ 41.8 $ 27.9 $ (22.5 ) Foreign 147.8 54.8 180.4 Total $ 189.6 $ 82.7 $ 157.9 |
Schedule of Components of Income Tax Expense (Benefit) | Provision (Benefit) for Income Taxes Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Current Deferred Total Current Deferred Total Current Deferred Total U.S. federal $ 4.6 $ 102.8 $ 107.4 $ 0.9 $ (1.3 ) $ (0.4 ) $ — $ 17.8 $ 17.8 U.S. state and local 1.7 0.4 2.1 3.7 8.2 11.9 3.1 8.5 11.6 Foreign 43.9 (11.5 ) 32.4 49.4 (22.8 ) 26.6 65.2 (32.5 ) 32.7 Total $ 50.2 $ 91.7 $ 141.9 $ 54.0 $ (15.9 ) $ 38.1 $ 68.3 $ (6.2 ) $ 62.1 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation to U.S. Statutory Rate Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Statutory U.S. federal income tax rate (1) $ 66.4 35.0 % $ 29.0 35.0 % $ 55.2 35.0 % Foreign income taxed at rates other than 35% (56.2 ) (29.6 ) (45.6 ) (55.1 ) (41.4 ) (26.2 ) Changes in valuation allowances 45.3 23.9 9.6 11.6 34.4 21.8 Foreign exchange gain (loss), net (17.7 ) (9.3 ) 3.1 3.7 (10.5 ) (6.6 ) Unrecognized tax benefits 3.1 1.6 7.1 8.6 0.4 0.3 Foreign taxes 4.1 2.2 4.5 5.4 5.8 3.7 Non-deductible interest 9.8 5.2 6.7 8.1 4.9 3.1 Non-deductible expenses 4.6 2.4 4.7 5.7 5.5 3.5 Tax credits (4.2 ) (2.2 ) (6.7 ) (8.1 ) (5.5 ) (3.5 ) Excess tax benefits relating to share-based compensation (13.1 ) (6.9 ) (13.4 ) (16.2 ) — — Venezuela deconsolidation and impairment (2.0 ) (1.1 ) 23.8 28.8 10.7 6.8 U.S. state and local taxes, net 1.3 0.7 7.8 9.4 8.1 5.1 U.S. tax reform (2) 107.8 56.9 — — — — Other - net (7.3 ) (4.0 ) 7.5 9.2 (5.5 ) (3.7 ) Total income tax provision / effective tax rate $ 141.9 74.8 % $ 38.1 46.1 % $ 62.1 39.3 % (1) The U.S. statutory rate has been used as management believes it is more meaningful to the Company. (2) Provisional net tax effect of the U.S. TCJA. |
Schedule of Deferred Tax Assets and Liabilities | Deferred Tax Balances Year Ended December 31, 2017 2016 Deferred tax asset Tax loss, credit and interest carryforwards $ 265.3 $ 263.7 Goodwill and intangibles — 48.1 Compensation and employee benefits 86.0 92.8 Accruals and other reserves 33.9 40.0 Research and development capitalization 8.9 15.7 Equity investment and other securities 26.4 (0.7 ) Other 10.9 16.4 Total deferred tax assets 431.4 476.0 Less: Valuation allowance (214.2 ) (135.4 ) Net deferred tax assets 217.2 340.6 Deferred tax liabilities Goodwill and intangibles (15.2 ) — Property, plant and equipment (146.9 ) (168.4 ) Unremitted earnings (7.4 ) (5.8 ) Long-term debt (2.2 ) (4.2 ) Total deferred tax liabilities (171.7 ) (178.4 ) Net deferred tax asset $ 45.5 $ 162.2 Non-current assets 198.4 322.4 Non-current liability (152.9 ) (160.2 ) Net deferred tax asset $ 45.5 $ 162.2 |
Schedule of Unrecognized Tax Benefits Roll Forward | Total Gross Unrecognized Tax Benefits Year Ended December 31, 2017 2016 2015 Balance at January 1 $ 12.3 $ 4.7 $ 5.3 Increases related to positions taken on items from prior years 1.9 — — Decreases related to positions taken on items from prior years — (0.2 ) (0.6 ) Increases related to positions taken in the current year 3.0 7.8 — Balance at December 31 $ 17.2 $ 12.3 $ 4.7 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of our basic and diluted net income per common share is as follows: Year Ended December 31, (In millions, except per share data) 2017 2016 2015 Net income to common shareholders $ 36.7 $ 38.8 $ 91.6 Basic weighted average shares outstanding 240.4 238.1 233.8 Diluted weighted average shares outstanding 246.1 244.4 239.7 Net income per common share: Basic net income per share $ 0.15 $ 0.16 $ 0.39 Diluted net income per share $ 0.15 $ 0.16 $ 0.38 |
Accounts and Notes Receivable46
Accounts and Notes Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Year Ended December 31, 2017 2016 Accounts receivable—trade, net $ 748.2 $ 640.4 Notes receivable 29.4 68.7 Other 92.6 92.8 Total $ 870.2 $ 801.9 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Year Ended December 31, 2017 2016 Finished products $ 347.5 $ 315.2 Semi-finished products 95.5 87.5 Raw materials and supplies 165.6 127.0 Total $ 608.6 $ 529.7 |
Net Property, Plant and Equip48
Net Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Year Ended December 31, Useful Lives (years) 2017 2016 Land $ 87.6 $ 85.2 Buildings and improvements 5 - 25 516.3 454.0 Machinery and equipment 3 - 25 1,244.0 1,087.5 Software 5 - 7 155.3 139.7 Other 3 - 20 41.7 35.6 Construction in progress 148.7 131.0 Total 2,193.6 1,933.0 Accumulated depreciation (805.0 ) (617.3 ) Property, plant and equipment, net $ 1,388.6 $ 1,315.7 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Year Ended December 31, 2017 2016 Available for sale securities $ 5.2 $ 4.4 Deferred income taxes—non-current 198.4 322.4 Other assets 225.0 209.3 Total $ 428.6 $ 536.1 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable | Year Ended December 31, 2017 2016 Trade payables $ 510.7 $ 429.5 Non-income taxes 27.0 27.2 Other 17.2 17.5 Total $ 554.9 $ 474.2 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Year Ended December 31, 2017 2016 Compensation and other employee-related costs $ 153.3 $ 145.8 Current portion of long-term employee benefit plans 12.0 10.1 Restructuring 71.5 66.1 Discounts, rebates, and warranties 138.8 119.8 Income taxes payable 22.2 23.3 Derivative liabilities 3.3 1.3 Other 88.5 73.6 Total $ 489.6 $ 440.0 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Debt | Borrowings are summarized as follows: Year Ended December 31, 2017 2016 2024 Dollar Term Loans $ 1,960.0 $ — 2023 Dollar Term Loans — 1,545.0 2023 Euro Term Loans 472.5 417.6 2024 Dollar Senior Notes 500.0 500.0 2024 Euro Senior Notes 399.7 349.7 2025 Euro Senior Notes 536.9 469.8 Short-term and other borrowings 94.8 39.8 Unamortized original issue discount (9.1 ) (10.0 ) Unamortized deferred financing costs (39.2 ) (48.0 ) $ 3,915.6 $ 3,263.9 Less: Short-term borrowings $ 12.9 $ 8.3 Current portion of long-term borrowings 24.8 19.6 Long-term debt $ 3,877.9 $ 3,236.0 |
Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at December 31, 2017 . 2018 $ 40.5 2019 26.5 2020 25.7 2021 25.7 2022 52.4 Thereafter 3,778.6 $ 3,949.4 |
2024 Euro Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption | We have the option to redeem all or part of the 2024 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated: Period 2024 Euro Notes Percentage 2019 103.188 % 2020 102.125 % 2021 101.063 % 2022 and thereafter 100.000 % |
2024 Dollar Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption | We have the option to redeem all or part of the 2024 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated: Period 2024 Dollar Notes Percentage 2019 103.656 % 2020 102.438 % 2021 101.219 % 2022 and thereafter 100.000 % |
2025 Euro Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption | We have the option to redeem all or part of the 2025 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after January 15 of the years indicated: Period 2025 Euro Notes Percentage 2019 102.813 % 2020 101.875 % 2021 100.938 % 2022 and thereafter 100.000 % |
Derivative Financial Instrume53
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative [Line Items] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table sets forth the locations and amounts recognized during the years ended December 31, 2017 , 2016 , and 2015 respectively, for these cash flow hedges. Derivatives in Cash Flow Hedging Relationships in 2017: Amount of Loss Recognized in OCI on Derivatives (Effective Portion) Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion) Location of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion) Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion) Interest rate contracts $ 1.8 Interest expense, net $ (0.4 ) Interest expense, net $ (2.3 ) Derivatives in Cash Flow Hedging Relationships in 2016: Amount of Location of Loss Reclassified from Amount of Location of Amount of Interest rate contracts $ 2.0 Interest expense, net $ 5.9 Interest expense, net $ 1.2 Derivatives in Cash Flow Hedging Relationships in 2015: Amount of Location of Loss Reclassified from Amount of Location of Amount of Interest rate contracts $ 5.5 Interest expense, net $ 6.5 Interest expense, net $ 0.4 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows: Derivatives Not Designated as Hedging Instruments under ASC 815 Location of (Gain) Loss Recognized in Income on Derivatives Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Foreign currency forward contracts Other expense, net $ 11.2 $ 4.3 $ (5.6 ) Interest rate cap Interest expense, net 0.6 — 0.1 $ 11.8 $ 4.3 $ (5.5 ) |
Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in the accompanying consolidated balance sheet: Year Ended December 31, 2017 2016 Prepaid and other assets: Interest rate swaps $ — $ 0.1 Other assets: Interest rate caps $ 1.2 $ — Total assets $ 1.2 $ 0.1 Other accrued liabilities: Interest rate swaps $ — $ 0.8 Interest rate caps 2.6 — Total liabilities $ 2.6 $ 0.8 |
Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our consolidated balance sheet: Year Ended December 31, 2017 2016 Prepaid and other assets: Foreign currency contracts $ — $ 0.1 Total assets $ — $ 0.1 Other accrued liabilities: Foreign currency contracts $ 0.7 $ 0.5 Total liabilities: 0.7 0.5 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Our business serves four end-markets globally as follows: Year Ended December 31, 2017 2016 2015 Performance Coatings Refinish $ 1,645.2 $ 1,679.7 $ 1,698.7 Industrial 1,029.9 718.8 683.1 Total Net sales Performance Coatings 2,675.1 2,398.5 2,381.8 Transportation Coatings Light Vehicle 1,322.8 1,337.7 1,310.6 Commercial Vehicle 355.0 332.6 391.5 Total Net sales Transportation Coatings 1,677.8 1,670.3 1,702.1 Total Net sales $ 4,352.9 $ 4,068.8 $ 4,083.9 |
Schedule of Segment Reporting Information, by Segment | Performance Coatings Transportation Coatings Total For the Year ended December 31, 2017 Net sales (1) $ 2,675.1 $ 1,677.8 $ 4,352.9 Equity in earnings in unconsolidated affiliates 0.3 0.7 1.0 Adjusted EBITDA (2) 564.2 321.0 885.2 Investment in unconsolidated affiliates 2.9 12.6 15.5 Performance Coatings Transportation Coatings Total For the Year ended December 31, 2016 Net sales (1) $ 2,398.5 $ 1,670.3 $ 4,068.8 Equity in earnings (losses) in unconsolidated affiliates (0.2 ) 0.4 0.2 Adjusted EBITDA (2) 549.7 352.7 902.4 Investment in unconsolidated affiliates 2.5 11.1 13.6 Performance Coatings Transportation Coatings Total For the Year ended December 31, 2015 Net sales (1) $ 2,381.8 $ 1,702.1 $ 4,083.9 Equity in earnings in unconsolidated affiliates 0.6 0.6 1.2 Adjusted EBITDA (2) 535.8 328.1 863.9 Investment in unconsolidated affiliates 4.0 8.4 12.4 (1) The Company has no intercompany sales between segments. (2) The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (i) non-cash items included within net income, (ii) items the Company does not believe are indicative of ongoing operating performance or (iii) nonrecurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows: |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Year Ended December 31, 2017 2016 2015 Income before income taxes $ 189.6 $ 82.7 $ 157.9 Interest expense, net 147.0 178.2 196.5 Depreciation and amortization 347.5 322.1 307.7 EBITDA 684.1 583.0 662.1 Debt extinguishment and refinancing related costs (a) 13.4 97.6 2.5 Foreign exchange remeasurement losses (b) 7.4 30.6 93.7 Long-term employee benefit plan adjustments (c) 1.4 1.5 (0.3 ) Termination benefits and other employee related costs (d) 35.3 61.8 36.6 Consulting and advisory fees (e) (0.1 ) 10.4 23.9 Transition-related costs (f) 7.7 — (3.4 ) Offering and transactional costs (g) 18.4 6.0 (1.5 ) Stock-based compensation (h) 38.5 41.1 30.2 Other adjustments (i) 3.6 5.0 (5.8 ) Dividends in respect of noncontrolling interest (j) (3.0 ) (3.0 ) (4.7 ) Deconsolidation impacts and impairments (k) 78.5 68.4 30.6 Adjusted EBITDA $ 885.2 $ 902.4 $ 863.9 (a) During the years ended December 31, 2017 and 2016 we refinanced our indebtedness, resulting in losses of $13.0 million and $88.0 million , respectively. In addition, during the years ended December 31, 2017, 2016 and 2015 we prepaid outstanding principal on our term loans, resulting in non-cash losses on extinguishment of $0.4 million , $9.6 million and $2.5 million , respectively. We do not consider these items to be indicative of our ongoing operating performance. (b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $1.8 million , $23.5 million , $51.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. (c) Eliminates the non-cash, non-service components of long-term employee benefit costs. (d) Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. (e) Represents fees paid to consultants, and associated true-ups to estimates, for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. (f) Represents integration costs related to the 2017 acquisition of the Industrial Wood business that was a carve-out business from Valspar and changes in estimates associated with the transition from DuPont to a standalone entity, including certain Acquisition indemnities. We do not consider these items to be indicative of our ongoing operating performance. (g) Represents acquisition-related expenses, including changes in the fair value of contingent consideration, as well as $10.0 million of costs associated with contemplated merger activities during the three months ended December 31, 2017 and costs associated with the 2016 secondary offerings of our common shares by Carlyle, all of which are not considered indicative of our ongoing operating performance. (h) Represents non-cash costs associated with stock-based compensation, including $8.2 million of expense during the year ended December 31, 2015 attributable to the accelerated vesting of all issued and outstanding stock options issued under the 2013 Plan. This acceleration was the result of the Change in Control that occurred in conjunction with Carlyle's ownership interest falling below 50% and triggering a liquidity event. (i) Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of our ongoing operations, including equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments, Carlyle management fees incurred prior to the Change in Control and non-cash fair value inventory adjustments associated with our business combinations. (j) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements. (k) During the year ended December 31, 2017, we recorded a loss in conjunction with the deconsolidation of our Venezuelan subsidiary of $70.9 million . During the year ended December 31, 2016 and 2015, we recorded non-cash impairments at our Venezuelan subsidiary of $68.4 million and $30.6 million , respectively, associated with our operational long-lived assets and a real estate investment (See Note 25). Additionally, during the year ended December 31, 2017, we recorded non-cash impairment charges related to certain manufacturing facilities previously announced for closure of $7.6 million . We do not consider these to be indicative of our ongoing operating performance. Geogr |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Net sales by region were as follows: Year Ended December 31, 2017 2016 2015 North America $ 1,607.7 $ 1,426.7 $ 1,368.6 EMEA 1,538.3 1,455.3 1,425.3 Asia Pacific 748.1 723.9 717.4 Latin America 458.8 462.9 572.6 Total (a) 4,352.9 4,068.8 4,083.9 Net long-lived assets by region were as follows: Year Ended December 31, 2017 2016 North America $ 457.9 $ 419.3 EMEA 507.4 456.9 Asia Pacific 258.9 248.0 Latin America 164.4 191.5 Total (b) $ 1,388.6 $ 1,315.7 (a) Net Sales are attributed to countries based on location of the customer. Sales to external customers in China represented approximately 12% , 13% and 13% of the total for the years ended December 31, 2017 , 2016 and 2015 , respectively. Sales to external customers in Germany represented approximately 8% , 9% and 9% of the total for the years ended December 31, 2017 , 2016 and 2015 , respectively. Mexico represented 6% of the total for the years ended December 31, 2017 , 2016 and 2015 . Canada, which is included in the North America region, represents approximately 4% , 4% and 3% of total net sales for the year ended December 31, 2017 , 2016 and 2015 , respectively. (b) Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $279.0 million and $262.2 million in the years ended December 31, 2017 and 2016 , respectively. China long-lived assets amounted to $217.2 million and $204.0 million in the years ended December 31, 2017 and 2016 , respectively. Brazil long-lived assets amounted to approximately $78.6 million and $94.9 million in the years ended December 31, 2017 and 2016 , respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $25.8 million and 20.0 million in the years ended December 31, 2017 and 2016 , respectively. |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Unrealized Currency Translation Adjustments Pension Plan Adjustments Unrealized Gain on Securities Unrealized Gain (Loss) on Derivatives Accumulated Other Comprehensive Loss Balance, December 31, 2016 $ (292.2 ) $ (56.6 ) $ 0.4 $ (2.0 ) $ (350.4 ) Current year deferrals to AOCI 83.4 17.1 0.4 (1.6 ) 99.3 Reclassifications from AOCI to Net income — 8.1 — 2.0 10.1 Net Change 83.4 25.2 0.4 0.4 109.4 Balance, December 31, 2017 $ (208.8 ) $ (31.4 ) $ 0.8 $ (1.6 ) $ (241.0 ) Unrealized Currency Translation Adjustments Pension Plan Unrealized Gain on Securities Unrealized Accumulated Other Comprehensive Loss Balance, December 31, 2015 $ (232.8 ) $ (33.4 ) $ 0.1 $ (3.2 ) $ (269.3 ) Current year deferrals to AOCI (59.4 ) (22.3 ) 0.3 (2.5 ) (83.9 ) Reclassifications from AOCI to Net income — (0.9 ) — 3.7 2.8 Net Change (59.4 ) (23.2 ) 0.3 1.2 (81.1 ) Balance, December 31, 2016 $ (292.2 ) $ (56.6 ) $ 0.4 $ (2.0 ) $ (350.4 ) Unrealized Currency Translation Adjustments Pension and Other Long-term Employee Benefit Adjustments Unrealized Unrealized Gain (Loss) on Derivatives Accumulated Other Comprehensive Loss Balance, December 31, 2014 $ (72.1 ) $ (31.2 ) $ (0.2 ) $ 0.2 $ (103.3 ) Current year deferrals to AOCI (160.7 ) (4.3 ) 0.3 0.6 (164.1 ) Reclassifications from AOCI to Net income — 2.1 — (4.0 ) (1.9 ) Net Change (160.7 ) (2.2 ) 0.3 (3.4 ) (166.0 ) Balance, December 31, 2015 $ (232.8 ) $ (33.4 ) $ 0.1 $ (3.2 ) $ (269.3 ) |
Quarterly Financial Informati56
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of the quarterly results of operations for the years ended December 31, 2017 and 2016 , respectively (in millions, except per share data): 2017 March 31 June 30 (2) September 30 December 31 (3) Full Year Total revenue $ 1,013.7 $ 1,094.6 $ 1,096.3 $ 1,172.4 $ 4,377.0 Cost of goods sold 641.1 690.0 702.5 746.0 2,779.6 Net income (loss) 65.9 (18.9 ) 56.3 (55.6 ) 47.7 Net income (loss) attributable to controlling interests 64.1 (20.8 ) 54.9 (61.5 ) 36.7 Basic net income (loss) per share 0.27 (0.09 ) 0.23 (0.26 ) 0.15 Diluted net income (loss) per share 0.26 (0.09 ) 0.22 (0.26 ) 0.15 2016 (1) March 31 June 30 (2) September 30 December 31 (4) Full Year Total revenue $ 963.2 $ 1,070.6 $ 1,026.3 $ 1,032.6 $ 4,092.7 Cost of goods sold 606.4 649.0 630.4 641.8 2,527.6 Net income (loss) 32.8 52.3 (5.4 ) (35.1 ) 44.6 Net income (loss) attributable to controlling interests 31.9 50.7 (6.6 ) (37.2 ) 38.8 Basic net income (loss) per share 0.13 0.21 (0.03 ) (0.16 ) 0.16 Diluted net income (loss) per share 0.13 0.21 (0.03 ) (0.16 ) 0.16 (1) The results include the impact of revenue corrections which revised previously reported financial data in all interim periods during the year ended December 31, 2016. See further discussion in Note 2. (2) During the three months ended June 30, 2017, the Company recorded a loss in conjunction with the deconsolidation of its Venezuelan subsidiary of $70.9 million . During the three months ended June 30, 2016, the Company recorded an impairment charge of $10.5 million , based on our evaluation of the carrying value associated with our real estate investment in Venezuela. See further discussion in Note 25. (3) During the three months ended December 31, 2017, the Company recorded a provisional net tax charge of $107.8 million ( $112.5 million of net loss attributable to controlling interests) associated with the U.S. Tax Cuts and Jobs Act legislation, resulting primarily from the write-down of net deferred tax assets to the lower enacted U.S. corporate tax rate of 21%. The provisionally estimated net tax charge reflects Axalta's current estimate of the new legislation’s impact, which may differ with further regulatory guidance, changes in Axalta's current interpretations and assumptions. Also during the three months ended December 31, 2017, we recorded restructuring costs associated with our Axalta Way initiatives of $28.7 million . (4) During the three months ended December 31, 2016, the Company recorded an impairment charge of $57.9 million , based on our evaluation of the carrying value associated with our long-lived operating assets in Venezuela. See further discussion in Note 25. Also during the three months ended December 31, 2016, we recorded restructuring costs associated with our Axalta Way initiatives for $36.6 million . |
General and Description of th57
General and Description of the Business (Details) | 1 Months Ended | 12 Months Ended | 17 Months Ended | |
Nov. 30, 2014$ / sharesshares | Dec. 31, 2017USD ($) | Aug. 31, 2016offeringshares | Aug. 01, 2016$ / shares | |
Axalta Coating Systems Luxembourg Top S.a.r.l [Member] [Member] | ||||
Entity Information [Line Items] | ||||
Ownership percentage | 100.00% | |||
Axalta Coating Systems Dutch Holdings A B.V. [Member] | ||||
Entity Information [Line Items] | ||||
Ownership percentage | 100.00% | |||
Axalta Coating Systems Dutch Holdings B B.V. [Member] | ||||
Entity Information [Line Items] | ||||
Ownership percentage | 100.00% | |||
Secondary Offering [Member] | ||||
Entity Information [Line Items] | ||||
Proceeds from issuance of common stock | $ | $ 0 | |||
Common Stock [Member] | IPO [Member] | The Carlyle Group L.P. [Member] | ||||
Entity Information [Line Items] | ||||
Number of shares issued in transaction (in shares) | shares | 57,500,000 | |||
Sale price per share (in dollars per share) | $ 19.50 | |||
Common Stock [Member] | Secondary Offering [Member] | The Carlyle Group L.P. [Member] | ||||
Entity Information [Line Items] | ||||
Number of shares issued in transaction (in shares) | shares | 170,300,000 | |||
Secondary offerings | offering | 6 | |||
Minimum [Member] | Common Stock [Member] | Secondary Offering [Member] | The Carlyle Group L.P. [Member] | ||||
Entity Information [Line Items] | ||||
Sale price per share (in dollars per share) | $ 27.93 | |||
Maximum [Member] | Common Stock [Member] | Secondary Offering [Member] | The Carlyle Group L.P. [Member] | ||||
Entity Information [Line Items] | ||||
Sale price per share (in dollars per share) | $ 29.75 |
Basis of Presentation of the 58
Basis of Presentation of the Consolidated and Combined Financial Statements Basis of Presentation of the Consolidated and Combined Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Net sales | $ 4,352.9 | $ 4,068.8 | $ 4,083.9 | |||||||||
Net income attributable to controlling interests | $ (61.5) | $ 54.9 | $ (20.8) | $ 64.1 | $ (37.2) | $ (6.6) | $ 50.7 | $ 31.9 | $ 36.7 | $ 38.8 | $ 91.6 | |
Earnings Per Share, Diluted | $ 0.26 | $ (0.22) | $ 0.09 | $ (0.26) | $ 0.16 | $ 0.03 | $ (0.21) | $ (0.13) | $ (0.15) | $ (0.16) | $ (0.38) | |
Other accrued liabilities | $ 489.6 | $ 440 | $ 489.6 | $ 440 | ||||||||
Goodwill | 1,271.2 | 964.1 | 1,271.2 | 964.1 | $ 931.3 | |||||||
Other assets | 428.6 | 536.1 | 428.6 | 536.1 | ||||||||
Accumulated deficit | $ (21.4) | (58.1) | $ (21.4) | (58.1) | ||||||||
Subsidiaries [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Ownership Interest in Subsidiary | 100.00% | 100.00% | ||||||||||
Revenue Recognition Correction [Member] | Restatement Adjustment [Member] | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Net sales | (4.7) | (3.3) | ||||||||||
Net income attributable to controlling interests | $ (3) | $ (2.1) | ||||||||||
Earnings Per Share, Diluted | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Other accrued liabilities | 22.4 | $ 22.4 | ||||||||||
Goodwill | 3.1 | 3.1 | ||||||||||
Other assets | 8.3 | 8.3 | ||||||||||
Accumulated deficit | $ 11 | $ 11 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Line Items] | |||
Business incentive programs | $ 1,428.2 | $ 1,130.3 | |
Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Useful life of finite lived intangible assets | 2 years | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Useful life of finite lived intangible assets | 20 years | ||
Customer Contracts [Member] | |||
Accounting Policies [Line Items] | |||
Useful life of finite lived intangible assets | 5 years | ||
Business incentive programs | $ 173 | 170.8 | |
Sales Allowances, Goods | $ 65 | $ 53.5 | $ 50.6 |
Recent Accounting Guidance (Det
Recent Accounting Guidance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Effect of adoption, charge to shareholders' equity | $ 43.9 | |
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Effect of adoption, charge to shareholders' equity | $ 12.1 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) $ in Millions | Jun. 01, 2017USD ($) | Dec. 31, 2017USD ($)business | Dec. 31, 2016USD ($) |
Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average amortization periods (years) | 10 years 5 months 25 days | 10 years 2 months | |
Trademarks [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average amortization periods (years) | 15 years 10 months 30 days | 14 years 8 months 31 days | |
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average amortization periods (years) | 19 years | 18 years 8 months | |
Industrial Wood Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, gross | $ 420 | ||
Consideration transferred, working capital adjustments | 10.3 | ||
Consideration transferred | 430.3 | ||
Goodwill on acquisition | 126.8 | $ 126.8 | |
Acquisition related costs | 5.3 | ||
Identifiable intangibles | $ 259.1 | ||
Weighted average amortization periods (years) | 19 years | ||
Net sales from acquired entities since acquisition date | 146.1 | ||
Pro forma earnings (loss) | (2.4) | ||
Pro forma net income (loss) | 55 | $ 45.9 | |
Industrial Wood Acquisition [Member] | Acquisition-related Costs [Member] | |||
Business Acquisition [Line Items] | |||
Pro forma net income (loss) | 5.3 | ||
Industrial Wood Acquisition [Member] | Acquisition-related Costs, Net of Tax [Member] | |||
Business Acquisition [Line Items] | |||
Pro forma net income (loss) | 3.3 | ||
Industrial Wood Acquisition [Member] | Fair Value Adjustment to Inventory [Member] | |||
Business Acquisition [Line Items] | |||
Pro forma net income (loss) | 2.8 | ||
Industrial Wood Acquisition [Member] | Fair Value Adjustment to Inventory, net of tax [Member] | |||
Business Acquisition [Line Items] | |||
Pro forma net income (loss) | 1.8 | ||
Industrial Wood Acquisition [Member] | Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets acquired | $ 34.6 | ||
Industrial Wood Acquisition [Member] | Trademarks [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets acquired | 8 | ||
Industrial Wood Acquisition [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets acquired | 203 | ||
Industrial Wood Acquisition [Member] | Customer Contracts [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets acquired | $ 13.5 | ||
2017 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Consideration transferred | 573.4 | ||
Definite-lived intangible assets acquired | $ 322.3 | ||
Percentage of voting interest acquired | 100.00% | ||
Number of businesses acquired | business | 8 | ||
Range of outcomes, value, high | $ 5.7 | ||
2017 Acquisitions [Member] | North America [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | business | 2 | ||
2017 Acquisitions [Member] | Europe [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | business | 5 | ||
2017 Acquisitions [Member] | Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets acquired | $ 47.4 | ||
2017 Acquisitions [Member] | Trademarks [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets acquired | 20.2 | ||
2017 Acquisitions [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets acquired | 239.1 | ||
2017 Acquisitions [Member] | Customer Contracts [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets acquired | $ 15.6 | ||
2017 Other Acquisitions [Member] [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | business | 7 |
Acquisitions and Divestitures62
Acquisitions and Divestitures - Assets Acquired and Liabilities Assumed (Details) - Industrial Wood Acquisition [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 01, 2017 |
Business Acquisition [Line Items] | ||
Accounts and notes receivable—trade | $ 23.3 | |
Inventories | 24.7 | |
Prepaid expenses and other | 0.2 | |
Property, plant and equipment | 23.1 | |
Identifiable intangibles | 259.1 | |
Accounts payable | 22.2 | |
Other accrued liabilities | 4.7 | |
Net assets acquired before goodwill on acquisition | 303.5 | |
Goodwill on acquisition | $ 126.8 | 126.8 |
Net assets acquired | 430.3 | |
Scenario, Previously Reported [Member] | ||
Business Acquisition [Line Items] | ||
Accounts and notes receivable—trade | 23.3 | |
Inventories | 24.9 | |
Prepaid expenses and other | 0.2 | |
Property, plant and equipment | 23 | |
Identifiable intangibles | 254.2 | |
Accounts payable | 22.4 | |
Other accrued liabilities | 5.1 | |
Net assets acquired before goodwill on acquisition | 298.1 | |
Goodwill on acquisition | 132.6 | |
Net assets acquired | 430.7 | |
Scenario, Adjustment [Member] | ||
Business Acquisition [Line Items] | ||
Accounts and notes receivable—trade | 0 | |
Inventories | (0.2) | |
Prepaid expenses and other | 0 | |
Property, plant and equipment | 0.1 | |
Identifiable intangibles | 4.9 | |
Accounts payable | (0.2) | |
Other accrued liabilities | (0.4) | |
Net assets acquired before goodwill on acquisition | 5.4 | |
Goodwill on acquisition | (5.8) | |
Net assets acquired | $ (0.4) |
Acquisitions and Divestitures63
Acquisitions and Divestitures - Pro Forma Information (Details) - Industrial Wood Acquisition [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net sales | $ 4,454.2 | $ 4,293.1 |
Net income | 55 | 45.9 |
Net income attributable to controlling interests | $ 44 | $ 40.1 |
Net income per share (Basic) (in dollars per share) | $ 0.18 | $ 0.17 |
Net income per share (Diluted) (in dollars per share) | $ 0.18 | $ 0.16 |
Goodwill and Identifiable Int64
Goodwill and Identifiable Intangible Assets - Additional Information (Details) - Trademarks [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Weighted average amortization periods (years) | 15 years 10 months 30 days | 14 years 8 months 31 days |
Indefinite-lived Intangible Assets, Major Class Name [Domain] | ||
Goodwill [Line Items] | ||
Weighted average amortization periods (years) | 20 years |
Goodwill and Identifiable Int65
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 964.1 | $ 931.3 |
Goodwill from acquisitions | 207.2 | 79.7 |
Goodwill, Purchase Accounting Adjustments | (15.2) | |
Foreign currency translation | 115.1 | (46.9) |
Goodwill, ending balance | 1,271.2 | 964.1 |
Performance Coatings [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 889.4 | 869 |
Goodwill from acquisitions | 207.2 | 64.2 |
Goodwill, Purchase Accounting Adjustments | (15.2) | |
Foreign currency translation | 107.8 | (43.8) |
Goodwill, ending balance | 1,189.2 | 889.4 |
Transportation Coatings [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 74.7 | 62.3 |
Goodwill from acquisitions | 0 | 15.5 |
Goodwill, Purchase Accounting Adjustments | 0 | |
Foreign currency translation | 7.3 | (3.1) |
Goodwill, ending balance | $ 82 | $ 74.7 |
Goodwill and Identifiable Int66
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 1,839.5 | $ 1,420.3 |
Accumulated Amortization | (411.3) | (290) |
Net Book Value, definite-lived | 1,428.2 | 1,130.3 |
Trademarks [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Net Book Value, indefinite-lived | 277.2 | 273.2 |
Technology-Based Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 498 | 417.1 |
Accumulated Amortization | (213.6) | (153.6) |
Net Book Value, definite-lived | $ 284.4 | $ 263.5 |
Weighted average amortization periods (years) | 10 years 5 months 25 days | 10 years 2 months |
Trademarks [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 102.6 | $ 55 |
Accumulated Amortization | (17.7) | (11.4) |
Net Book Value, definite-lived | $ 84.9 | $ 43.6 |
Weighted average amortization periods (years) | 15 years 10 months 30 days | 14 years 8 months 31 days |
Customer Relationships [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 945.1 | $ 672.6 |
Accumulated Amortization | (176.8) | (123.3) |
Net Book Value, definite-lived | $ 768.3 | $ 549.3 |
Weighted average amortization periods (years) | 19 years | 18 years 8 months |
Other Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 16.6 | $ 2.4 |
Accumulated Amortization | (3.2) | (1.7) |
Net Book Value, definite-lived | $ 13.4 | $ 0.7 |
Weighted average amortization periods (years) | 4 years 9 months | 4 years 7 months |
Goodwill and Identifiable Int67
Goodwill and Identifiable Intangible Assets - Schedule of Activity Related to In Process Research and Development Projects (Details) - In Process Research and Development [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 1.5 | $ 1.6 |
Completed | 0 | 0 |
Abandoned | (1.7) | 0 |
Acquired | 2.3 | 0 |
Foreign currency translation | 0.2 | (0.1) |
Ending balance | $ 2.3 | $ 1.5 |
Goodwill and Identifiable Int68
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 110.8 |
2,019 | 109.5 |
2,020 | 109.3 |
2,021 | 108.7 |
2,022 | $ 106.5 |
Restructuring - Additional Inf
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation | $ 4.3 | ||
Impairments | $ 7.6 | $ 10.5 | $ 30.6 |
Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring payment term | 12 months | ||
Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring payment term | 15 months |
Restructuring - Restructuring
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |||
Beginning balance | $ 66.1 | $ 41.3 | $ 48.5 |
Expense recorded | 36.2 | 58.5 | 31.9 |
Payments made | (36.1) | (31) | (33.8) |
Foreign currency translation | 6.8 | (2.7) | (5.3) |
Venezuela deconsolidation impact | (1.5) | ||
Ending balance | $ 71.5 | $ 66.1 | $ 41.3 |
Commitments and Contingencies
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, rent expense, net | $ 52.7 | $ 48 | $ 48.2 |
Outstanding bank guarantees | 15.2 | 11.1 | |
Bank guarantees liability recorded | $ 0 | $ 0 |
Commitments and Contingencies72
Commitments and Contingencies - Schedule if Sales Leaseback Transactions (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018 Sales Leaseback Payments | $ 5.3 |
2019 Sales Leaseback Payments | 5.4 |
2020 Sales Leaseback Payments | 5.4 |
2021 Sales Leaseback Payments | 5.5 |
2022 Sales Leaseback Payments | 5.8 |
Thereafter Sales Leaseback Payments | 83.4 |
Sales Leaseback Total Minimum Lease Payments | $ 110.8 |
Commitments and Contingencies73
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018 Operating Lease Payment | $ 41.8 |
2019 Operating Lease Payment | 26.6 |
2020 Operating Lease Payment | 19.4 |
2021 Operating Lease Payment | 14.9 |
2022 Operating Lease Payment | 11.8 |
Thereafter Operating Lease Payments | 20.2 |
Operating Lease Total Minimum Payments | $ 134.7 |
Long-term Employee Benefits -
Long-term Employee Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of actuarial losses in excess of market value or PBO to be Included in periodic benefit costs (exceeding) | 10.00% | ||
Defined contribution plan, employer contribution amount | $ 45,100,000 | $ 43,300,000 | $ 36,700,000 |
VENEZUELA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other loss, before tax | 8,500,000 | ||
AOCI loss due to Venezuela deconsolidation, net of tax | (5,900,000) | ||
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other post-employeement benefit obligation | 0 | ||
Net periodic benefit cost (credit) | 3,400,000 | ||
Amortization of prior service credit | 3,700,000 | ||
Settlement gain (loss) | $ (300,000) | ||
Discount rate to determine benefit obligation | 1.50% | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other post-employeement benefit obligation | 636,900,000 | 547,600,000 | $ 541,700,000 |
Net periodic benefit cost (credit) | (10,400,000) | (12,200,000) | (15,100,000) |
Amortization of prior service credit | $ 0 | $ 0 | $ 100,000 |
Discount rate to determine benefit obligation | 2.13% | 2.52% | 3.05% |
Accumulated other loss, before tax | $ 43,800,000 | $ 75,700,000 | |
Estimated future employer contribution | $ 16,200,000 | ||
Pension Plan [Member] | Scenario, Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of return on plan assets to determine net cost | 4.47% | ||
Europe [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension benefit obligation, percentage by region | 85.00% |
Long-term Employee Benefits 75
Long-term Employee Benefits - Schedule of Defined Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Accrued pensions | $ (279.1) | $ (249.1) | |
Pension Plan [Member] | |||
Change in benefit obligation: | |||
Projected benefit obligation at beginning of year | 547.6 | 541.7 | |
Service cost | 9 | 10.7 | $ 12 |
Interest cost | 13.8 | 15.1 | 16.9 |
Participant contributions | 1.3 | 1 | |
Actuarial losses (gains), net | (13.8) | 57.4 | |
Plan curtailments, settlements and special termination benefits | (12.9) | (2) | |
Benefits paid | (23.3) | (21.8) | |
Business combinations and other adjustments | 51.2 | 0 | |
Currency translation adjustment | 64 | (54.5) | |
Projected benefit obligation at end of year | 636.9 | 547.6 | 541.7 |
Change in plan assets: | |||
Fair value of plan assets at: | 288.7 | 278.4 | |
Actual return on plan assets | 22.2 | 41.1 | |
Employer contributions | 27.4 | 27 | |
Participant contributions | 1.3 | 1 | |
Benefits paid | 23.3 | 21.8 | |
Settlements | (13.9) | (1.2) | |
Business combinations and other adjustments | 32.4 | 0 | |
Currency translation adjustment | 30.2 | (35.8) | |
Fair value of plan assets at: | 365 | 288.7 | $ 278.4 |
Funded status, net | (271.9) | (258.9) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Other assets | 19.2 | 0.3 | |
Other accrued liabilities | (12) | (10.1) | |
Accrued pensions | (279.1) | (249.1) | |
Net amount recognized | $ (271.9) | $ (258.9) |
Long-term Employee Benefits 76
Long-term Employee Benefits - Schedule of Accumulated and Projected Benefit Obligations (Details) - Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
ABO | $ 605.4 | $ 516.4 |
Plans with PBO in excess of plan assets: | ||
PBO | 401.2 | 542.6 |
ABO | 370 | 511.6 |
Fair value plan assets | 110.1 | 283.4 |
Plans with ABO in excess of plan assets: | ||
PBO | 393.3 | 488.2 |
ABO | 364.9 | 461.3 |
Fair value plan assets | $ 104.7 | $ 232.6 |
Long-term Employee Benefits 77
Long-term Employee Benefits - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) - Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated net actuarial losses | $ (46.4) | $ (76.6) |
Accumulated prior service credit | 2.6 | 0.9 |
Total | $ (43.8) | $ (75.7) |
Long-term Employee Benefits 78
Long-term Employee Benefits - Schedule of Amounts in Accumulated Other Comprehensive Income to be Amortized (Details) - Pension Plan [Member] $ in Millions | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of net actuarial losses | $ (1.2) |
Amortization of prior service credit | 0.1 |
Total | $ (1.1) |
Long-term Employee Benefits 79
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | |||
Net actuarial (gain) loss, net | $ (31.3) | $ 28.9 | $ 2.2 |
Pension Plan [Member] | |||
Net periodic benefit cost: | |||
Service cost | 9 | 10.7 | 12 |
Interest cost | 13.8 | 15.1 | 16.9 |
Expected return on plan assets | (15) | (12.6) | (14.6) |
Amortization of actuarial loss, net | 1.4 | 0.4 | 0.4 |
Amortization of prior service credit | 0 | 0 | (0.1) |
Curtailment gain | 0 | (1.1) | 0 |
Settlement (gain) loss | 0.2 | (0.5) | 0.5 |
Special termination benefit loss | 1 | 0.2 | 0 |
Net periodic benefit cost | 10.4 | 12.2 | 15.1 |
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | |||
Net actuarial (gain) loss, net | (20.6) | 27.7 | (3.4) |
Prior service (credit) cost | (1.2) | 0 | 2.7 |
Amortization of prior service credit | 0 | 0 | 0.1 |
Curtailment gain | 0 | 1.1 | 0 |
Settlement gain (loss) | (0.2) | 0.5 | (0.5) |
Other adjustments | (7.9) | 0 | 0 |
Total (gain) loss recognized in other comprehensive (income) loss | (31.3) | 28.9 | (1.5) |
Total recognized in net periodic benefit cost and comprehensive (income) loss | $ (20.9) | $ 41.1 | $ 13.6 |
Long-term Employee Benefits 80
Long-term Employee Benefits - Schedule of Assumptions Used (Details) - Pension Plan [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate to determine benefit obligation | 2.13% | 2.52% | 3.05% |
Discount rate to determine net cost | 2.52% | 3.05% | 3.23% |
Rate of future compensation increases to determine benefit obligation | 2.69% | 3.07% | 3.03% |
Rate of future compensation increases to determine net cost | 3.07% | 3.03% | 3.57% |
Rate of return on plan assets to determine net cost | 4.73% | 4.75% | 5.21% |
Long-term Employee Benefits 81
Long-term Employee Benefits - Schedule of Expected Benefit Payments (Details) - Pension Plan [Member] $ in Millions | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 29.7 |
2,019 | 32.2 |
2,020 | 32.2 |
2,021 | 31.1 |
2,022 | 32.1 |
2023—2027 | $ 189 |
Long-term Employee Benefits 82
Long-term Employee Benefits - Schedule of Allocation of Plan Assets (Details) - Pension Plan [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 25.00% | 30.00% |
Target Allocation | .25 | |
Minimum [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 20.00% | 35.00% |
Target Allocation | .20 | |
Minimum [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 0.00% | 0.00% |
Target Allocation | 0 | |
Minimum [Member] | Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 45.00% | 25.00% |
Target Allocation | .45 | |
Maximum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 30.00% | 35.00% |
Target Allocation | .30 | |
Maximum [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 25.00% | 40.00% |
Target Allocation | .25 | |
Maximum [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 5.00% | 5.00% |
Target Allocation | .05 | |
Maximum [Member] | Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 50.00% | 30.00% |
Target Allocation | .50 |
Long-term Employee Benefits - S
Long-term Employee Benefits - Schedule of Fair Value of Defined Benefit Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 158 | $ 77.5 | $ 74.1 |
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135.7 | 64.1 | 63.3 |
Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.5 | 11.2 | 8.5 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 365 | 288.7 | $ 278.4 |
Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 163.1 | 176.4 | |
Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24.4 | 18.6 | |
Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 158 | 77.5 | |
Pension Plan [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.7 | 2.8 | |
Pension Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.7 | 2.8 | |
Pension Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | US Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33.3 | 30.7 | |
Pension Plan [Member] | US Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 30.7 | |
Pension Plan [Member] | US Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | US Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.3 | 0 | |
Pension Plan [Member] | Foreign Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76.4 | 63.9 | |
Pension Plan [Member] | Foreign Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 73.4 | 63.5 | |
Pension Plan [Member] | Foreign Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.2 | 0.3 | |
Pension Plan [Member] | Foreign Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.8 | 0.1 | |
Pension Plan [Member] | US and Foreign Government Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 44.6 | 60.9 | |
Pension Plan [Member] | US and Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33.1 | 48 | |
Pension Plan [Member] | US and Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.3 | 12.9 | |
Pension Plan [Member] | US and Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.2 | 0 | |
Pension Plan [Member] | Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32.8 | 38.4 | |
Pension Plan [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17.2 | 31 | |
Pension Plan [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.1 | 5.3 | |
Pension Plan [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.5 | 2.1 | |
Pension Plan [Member] | Private Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 141.2 | 64.6 | |
Pension Plan [Member] | Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.7 | 0.4 | |
Pension Plan [Member] | Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | 0.1 | |
Pension Plan [Member] | Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135.7 | 64.1 | |
Pension Plan [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.5 | 11.2 | |
Pension Plan [Member] | Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.5 | 11.2 | |
Pension Plan [Member] | Defined Benefit Plan Assets, Excluding Pension Trust Receivables [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 272.5 | ||
Pension Plan [Member] | Defined Benefit Plan Assets, Excluding Pension Trust Receivables [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 345.5 | ||
Pension Plan [Member] | Asset-backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments at net asset value | 10.9 | 8.8 | |
Pension Plan [Member] | Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments at net asset value | $ 8.6 | $ 7.4 |
Long-term Employee Benefits 84
Long-term Employee Benefits - Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | ||
Fair value of plan assets at: | $ 77.5 | $ 74.1 |
Realized (loss) | 0 | 0 |
Change in unrealized gain | 9.9 | 1.3 |
Purchases, sales, issues and settlements | 70.6 | 2.1 |
Transfers in/(out) of Level 3 | 0 | 0 |
Fair value of plan assets at: | 158 | 77.5 |
Private Equity Funds [Member] | ||
Change in plan assets: | ||
Fair value of plan assets at: | 64.1 | 63.3 |
Realized (loss) | 0 | 0 |
Change in unrealized gain | 8.3 | (1.4) |
Purchases, sales, issues and settlements | 63.3 | 2.2 |
Transfers in/(out) of Level 3 | 0 | 0 |
Fair value of plan assets at: | 135.7 | 64.1 |
Debt and Equity [Member] | ||
Change in plan assets: | ||
Fair value of plan assets at: | 2.2 | 2.3 |
Realized (loss) | 0 | 0 |
Change in unrealized gain | 0.4 | (0.1) |
Purchases, sales, issues and settlements | 6.2 | 0 |
Transfers in/(out) of Level 3 | 0 | 0 |
Fair value of plan assets at: | 8.8 | 2.2 |
Real Estate [Member] | ||
Change in plan assets: | ||
Fair value of plan assets at: | 11.2 | 8.5 |
Realized (loss) | 0 | 0 |
Change in unrealized gain | 1.2 | 2.8 |
Purchases, sales, issues and settlements | 1.1 | (0.1) |
Transfers in/(out) of Level 3 | 0 | 0 |
Fair value of plan assets at: | $ 13.5 | $ 11.2 |
Stock-based Compensation - Add
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 38.5 | $ 41.1 | $ 30.2 | ||
Tax benefit from compensation expense | $ 12.1 | $ 14 | 10.7 | ||
Stock-based compensation attributable to accelerated vesting | $ 8.2 | ||||
Grant date fair value (in dollars per share) | $ 7.69 | $ 5.69 | $ 8.15 | ||
Award vesting period (in years) | 3 years | 3 years | |||
Expected term (in years) | 6 years | ||||
Proceeds from option exercises | $ 24.8 | $ 16.7 | $ 62.4 | ||
Tax benefit from exercise of stock options | 13.1 | ||||
Intrinsic value on options exercised | 42.2 | 42.5 | 166.8 | ||
Vested in period, fair value | 5.2 | 3.4 | $ 24.3 | ||
Unrecognized compensation cost | $ 4 | ||||
Period for recognition of compensation not yet recognized (in years) | 1 year 4 months 2 days | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period (in years) | 10 years | ||||
Restricted Stock and Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period for recognition of compensation not yet recognized (in years) | 1 year 6 months 1 day | ||||
Restricted stock grants in period (in shares) | 800,000 | ||||
Unrecognized compensation cost | $ 18.2 | ||||
Aggregate intrinsic value, vested | 30.1 | 5.5 | |||
Vested in period, fair value | $ 29.4 | $ 6.2 | |||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Period for recognition of compensation not yet recognized (in years) | 1 year 10 months 24 days | ||||
Restricted stock grants in period (in shares) | 300,000 | ||||
Unrecognized compensation cost | $ 11.3 | ||||
Award requisite service period (in years) | 3 years | ||||
Performance Shares [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Actual award percent | 0.00% | ||||
Performance Shares [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Actual award percent | 200.00% | ||||
2013 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 19,839,143 | ||||
2014 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 11,830,000 | ||||
2014 Plan [Member] | Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 6 years | 6 years | 6 years | ||
Weighted average dividend rate | 0.00% | 0.00% | 0.00% | ||
The Carlyle Group L.P. [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ownership percentage, less than | 50.00% |
Stock-based Compensation - Sch
Stock-based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 6 years | ||
Employee Stock Option [Member] | 2014 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 6 years | 6 years | 6 years |
Volatility | 21.75% | 21.63% | 22.19% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
Discount Rate | 2.03% | 1.45% | 1.79% |
Stock-based Compensation - S87
Stock-based Compensation - Schedule of Stock Options Roll Forward (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 9.6 |
Granted (in shares) | shares | 0.9 |
Exercised (in shares) | shares | (2.2) |
Forfeited (in shares) | shares | (0.2) |
Ending balance (in shares) | shares | 8.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning balance (in dollars per share) | $ / shares | $ 14.40 |
Granted (in dollars per share) | $ / shares | 29.56 |
Exercised (in dollars per share) | $ / shares | 11.42 |
Forfeited (in dollars per share) | $ / shares | 28.29 |
Ending balance (in dollars per share) | $ / shares | $ 16.54 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Vested and expected to vest (in shares) | shares | 8.1 |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares | $ 16.54 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 128.3 |
Vested and expected to vest, weighted average remaining contractual term (in years) | 6 years 6 months 6 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Exercisable (in shares) | shares | 6.3 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 13.25 |
Exercisable, aggregate intrinsic value | $ | $ 119.9 |
Exercisable, weighted average remaining contractual term (in years) | 5 years 11 months 15 days |
Stock-based Compensation - S88
Stock-based Compensation - Schedule of Share-based Compensation, Restricted Stock and Restricted Units Activity (Details) - Restricted Stock and Restricted Stock Units [Member] shares in Millions | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 2.3 |
Granted (in shares) | shares | 0.8 |
Vested (in shares) | shares | (1) |
Forfeited (in shares) | shares | (0.2) |
Ending balance (in shares) | shares | 1.9 |
Beginning balance (in dollars per share) | $ / shares | $ 29.18 |
Granted (in dollars per share) | $ / shares | 30.10 |
Vested (in dollars per share) | $ / shares | 30.02 |
Forfeited (in dollars per share) | $ / shares | 27.21 |
Ending balance (in dollars per share) | $ / shares | $ 29.32 |
Stock-based Compensation - S89
Stock-based Compensation - Schedule of Performance Stock Awards and PSUs (Details) - Performance Shares [Member] shares in Millions | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 0.3 |
Granted (in shares) | shares | 0.3 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 0.6 |
Beginning balance (in dollars per share) | $ / shares | $ 27.74 |
Granted (in dollars per share) | $ / shares | 38.11 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 31.17 |
Other Expense, Net - Schedule
Other Expense, Net - Schedule of Other Non-operating Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange losses, net | $ 7.4 | $ 30.6 | $ 93.7 |
Impairments | 7.6 | 10.5 | 30.6 |
Debt extinguishment and refinancing related costs | 13.4 | 97.6 | 2.5 |
Other miscellaneous expense (income), net | (2.7) | 4 | (15.6) |
Total | $ 25.7 | $ 142.7 | $ 111.2 |
Other Expense, Net - Additiona
Other Expense, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income Expense [Line Items] | |||
Additional interest purchased | 25.00% | ||
Payments to acquire equity method investments | $ 4.3 | ||
Gain recognized on step-acquisition | 5.4 | ||
(Gain) loss on non-derivative instruments, net | $ 11.8 | $ 4.3 | (5.5) |
Other miscellaneous expense (income), net [Member] | Foreign Exchange Contract [Member] | |||
Other Income Expense [Line Items] | |||
(Gain) loss on non-derivative instruments, net | 0.2 | 4.3 | (5.6) |
Subsidiaries [Member] | |||
Other Income Expense [Line Items] | |||
Exchange gains (losses) | $ (1.8) | $ (23.5) | $ (51.5) |
Income Taxes - Additional Info
Income Taxes - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)Jurisdiction | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Schedule Of Income Tax [Line Items] | ||||
Provisional income tax expense (benefit) | $ 107.8 | |||
Deferred tax asset, provisional income tax expense | 81.1 | |||
Valuation allowance | 26.1 | |||
Tax credit carryforward | 34.8 | $ 26 | ||
Valuation allowance | (214.2) | (135.4) | ||
Unrecognized tax benefits | 17.2 | 12.3 | $ 4.7 | $ 5.3 |
Unrecognized tax benefits that would impact effective tax rate | 9.7 | 8.5 | 4.7 | |
Penalties and interest expense | 0.1 | 0.3 | 0.4 | |
Penalties and interest accrued | $ 1.2 | 1.1 | 0.7 | |
Number of foreign income tax jurisdictions | Jurisdiction | 47 | |||
Unrecognized tax benefits, including interest and penalties | $ 18.4 | 13.4 | $ 5.4 | |
LUXEMBOURG AND THE NETHERLANDS | ||||
Schedule Of Income Tax [Line Items] | ||||
Operating loss carryforwards | $ 155.7 | 113.8 | ||
NETHERLANDS | ||||
Schedule Of Income Tax [Line Items] | ||||
Carryforward period (in years) | 9 years | |||
Interest Expense [Member] | ||||
Schedule Of Income Tax [Line Items] | ||||
Tax credit carryforward | $ 12.4 | 17.7 | ||
Foreign Tax Authority [Member] | ||||
Schedule Of Income Tax [Line Items] | ||||
Operating loss carryforwards | 176.4 | 152.8 | ||
Operating and capital loss carryforwards with no expiration | 84.9 | 63.2 | ||
Operating and capital loss carryforwards, subject to expiration | 91.5 | 89.6 | ||
Tax credit carryforward | 1.8 | 1.9 | ||
Valuation allowance | (26.1) | |||
Foreign Tax Authority [Member] | Indefinite Carryforward Period [Member] | ||||
Schedule Of Income Tax [Line Items] | ||||
Tax credit carryforward | 1.5 | 1.8 | ||
Domestic Tax Authority [Member] | ||||
Schedule Of Income Tax [Line Items] | ||||
Operating and capital loss carryforwards, subject to expiration | 37.2 | 62.8 | ||
Valuation allowance | (188.1) | |||
State and Local Jurisdiction [Member] | ||||
Schedule Of Income Tax [Line Items] | ||||
Operating and capital loss carryforwards, subject to expiration | $ 2.7 | $ 2.5 |
Income Taxes - Schedule of Inc
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 41.8 | $ 27.9 | $ (22.5) |
Foreign | 147.8 | 54.8 | 180.4 |
Income before income taxes | $ 189.6 | $ 82.7 | $ 157.9 |
Income Taxes - Schedule of Com
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | $ 4.6 | $ 0.9 | $ 0 |
U.S. state and local | 1.7 | 3.7 | 3.1 |
Foreign | 43.9 | 49.4 | 65.2 |
Total | 50.2 | 54 | 68.3 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | 102.8 | (1.3) | 17.8 |
U.S. state and local | 0.4 | 8.2 | 8.5 |
Foreign | (11.5) | (22.8) | (32.5) |
Total | 91.7 | (15.9) | (6.2) |
U.S. federal | 107.4 | (0.4) | 17.8 |
U.S. state and local | 2.1 | 11.9 | 11.6 |
Foreign | 32.4 | 26.6 | 32.7 |
Total | $ 141.9 | $ 38.1 | $ 62.1 |
Income Taxes - Schedule of Eff
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory U.S. federal income tax rate | $ 66.4 | $ 29 | $ 55.2 |
Foreign income taxed at rates other than 35% | (56.2) | (45.6) | (41.4) |
Changes in valuation allowances | 45.3 | 9.6 | 34.4 |
Foreign exchange gain (loss), net | (17.7) | 3.1 | (10.5) |
Unrecognized tax benefits | 3.1 | 7.1 | 0.4 |
Foreign taxes | 4.1 | 4.5 | 5.8 |
Non-deductible interest | 9.8 | 6.7 | 4.9 |
Non-deductible expenses | 4.6 | 4.7 | 5.5 |
Tax credits | (4.2) | (6.7) | (5.5) |
Excess tax benefits relating to share-based compensation | (13.1) | (13.4) | 0 |
Venezuela deconsolidation and impairment | (2) | 23.8 | 10.7 |
U.S. state and local taxes, net | 1.3 | 7.8 | 8.1 |
U.S. tax reform | 107.8 | 0 | 0 |
Other - net | (7.3) | 7.5 | (5.5) |
Total | $ 141.9 | $ 38.1 | $ 62.1 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Foreign income taxed at rates other than 35% | (29.60%) | (55.10%) | (26.20%) |
Changes in valuation allowances | 23.90% | 11.60% | 21.80% |
Foreign exchange gain (loss), net | (9.30%) | 3.70% | (6.60%) |
Unrecognized tax benefits | 1.60% | 8.60% | 0.30% |
Foreign taxes | 2.20% | 5.40% | 3.70% |
Non-deductible interest | 5.20% | 8.10% | 3.10% |
Non-deductible expenses | 2.40% | 5.70% | 3.50% |
Tax credits | (2.20%) | (8.10%) | (3.50%) |
Excess tax benefits relating to share-based compensation | (6.90%) | (16.20%) | (0.00%) |
Venezuela deconsolidation and impairment | (1.10%) | 28.80% | 6.80% |
U.S. state and local taxes, net | 0.70% | 9.40% | 5.10% |
U.S. tax reform | 56.90% | 0.00% | 0.00% |
Other - net | (4.00%) | 9.20% | (3.70%) |
Total income tax provision / effective tax rate | 74.80% | 46.10% | 39.30% |
Income Taxes - Schedule of Def
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax asset | ||
Tax loss, credit and interest carryforwards | $ 265.3 | $ 263.7 |
Deferred Tax Assets, Goodwill and Intangible Assets | 0 | 48.1 |
Compensation and employee benefits | 86 | 92.8 |
Accruals and other reserves | 33.9 | 40 |
Research and development capitalization | 8.9 | 15.7 |
Deferred Tax Assets, Equity Method Investments | 26.4 | (0.7) |
Other | 10.9 | 16.4 |
Total deferred tax assets | 431.4 | 476 |
Less: Valuation allowance | (214.2) | (135.4) |
Net deferred tax assets | 217.2 | 340.6 |
Deferred tax liabilities | ||
Deferred Tax Liabilities, Goodwill and Intangible Assets | (15.2) | 0 |
Property, plant and equipment | (146.9) | (168.4) |
Unremitted earnings | (7.4) | (5.8) |
Long-term debt | (2.2) | (4.2) |
Total deferred tax liabilities | (171.7) | (178.4) |
Net deferred tax asset | 45.5 | 162.2 |
Deferred Tax Assets, Net, Classification [Abstract] | ||
Non-current assets | 198.4 | 322.4 |
Non-current liability | (152.9) | (160.2) |
Net deferred tax asset | $ 45.5 | $ 162.2 |
Income Taxes - Schedule of Tot
Income Taxes - Schedule of Total Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 12.3 | $ 4.7 | $ 5.3 |
Increases related to positions taken on items from prior years | 1.9 | 0 | 0 |
Decreases related to positions taken on items from prior years | 0 | (0.2) | (0.6) |
Increases related to positions taken in the current year | 3 | 7.8 | 0 |
Ending Balance | $ 17.2 | $ 12.3 | $ 4.7 |
Earnings Per Common Share - Sc
Earnings Per Common Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to controlling interests | $ (61.5) | $ 54.9 | $ (20.8) | $ 64.1 | $ (37.2) | $ (6.6) | $ 50.7 | $ 31.9 | $ 36.7 | $ 38.8 | $ 91.6 |
Basic weighted average shares outstanding (in dollars per share) | 240.4 | 238.1 | 233.8 | ||||||||
Diluted weighted average shares outstanding (in dollars per share) | 246.1 | 244.4 | 239.7 | ||||||||
Net income per common share: | |||||||||||
Basic net income per share (in dollars per share) | $ (0.26) | $ 0.23 | $ (0.09) | $ 0.27 | $ (0.16) | $ (0.03) | $ 0.21 | $ 0.13 | $ 0.15 | $ 0.16 | $ 0.39 |
Diluted net income per share (in dollars per share) | $ (0.26) | $ 0.22 | $ (0.09) | $ 0.26 | $ (0.16) | $ (0.03) | $ 0.21 | $ 0.13 | $ 0.15 | $ 0.16 | $ 0.38 |
Earnings Per Common Share - Ad
Earnings Per Common Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1.8 | 1.3 | 0.7 |
Accounts and Notes Receivabl100
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Accounts receivable—trade, net | $ 748.2 | $ 640.4 |
Notes receivable | 29.4 | 68.7 |
Other | 92.6 | 92.8 |
Total | $ 870.2 | $ 801.9 |
Accounts and Notes Receivabl101
Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Allowance for doubtful accounts | $ 15.9 | $ 13.7 | |
Bad debt expense | $ 3.5 | $ 3.4 | $ 4.9 |
Inventories - Schedule of Inve
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 347.5 | $ 315.2 |
Semi-finished products | 95.5 | 87.5 |
Raw materials and supplies | 165.6 | 127 |
Inventories | $ 608.6 | $ 529.7 |
Inventories - Additional Infor
Inventories - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Stores and supplies inventories | $ 20.8 | $ 20.2 |
Net Property, Plant and Equi104
Net Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |||
Depreciation | $ 176.6 | $ 176.8 | $ 169.1 |
Net Property, Plant and Equi105
Net Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,193.6 | $ 1,933 |
Accumulated depreciation | (805) | (617.3) |
Property, plant and equipment, net | 1,388.6 | 1,315.7 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 87.6 | 85.2 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 516.3 | 454 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,244 | 1,087.5 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 155.3 | 139.7 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 41.7 | 35.6 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 148.7 | $ 131 |
Minimum [Member] | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of PP&E | 5 years | |
Minimum [Member] | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of PP&E | 3 years | |
Minimum [Member] | Software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of PP&E | 5 years | |
Minimum [Member] | Other | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of PP&E | 3 years | |
Maximum [Member] | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of PP&E | 25 years | |
Maximum [Member] | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of PP&E | 25 years | |
Maximum [Member] | Software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of PP&E | 7 years | |
Maximum [Member] | Other | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of PP&E | 20 years |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Available for sale securities | $ 5.2 | $ 4.4 |
Deferred income taxes—non-current | 198.4 | 322.4 |
Other assets | 225 | 209.3 |
Total | $ 428.6 | $ 536.1 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 510.7 | $ 429.5 |
Non-income taxes | 27 | 27.2 |
Other | 17.2 | 17.5 |
Total | $ 554.9 | $ 474.2 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||||
Compensation and other employee-related costs | $ 153.3 | $ 145.8 | ||
Current portion of long-term employee benefit plans | 12 | 10.1 | ||
Restructuring | 71.5 | 66.1 | $ 41.3 | $ 48.5 |
Discounts, rebates, and warranties | 138.8 | 119.8 | ||
Income taxes payable | 22.2 | 23.3 | ||
Derivative liabilities | 3.3 | 1.3 | ||
Other | 88.5 | 73.6 | ||
Total | $ 489.6 | $ 440 |
Borrowings - Schedule of Debt
Borrowings - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 01, 2017 | Dec. 31, 2016 | Aug. 16, 2016 |
Debt Instrument [Line Items] | ||||
Short-term and other borrowings | $ 94.8 | $ 39.8 | ||
Unamortized original issue discount | (9.1) | (10) | ||
Unamortized deferred financing costs | (39.2) | (48) | ||
Debt and Capital Lease Obligations | 3,915.6 | 3,263.9 | ||
Short-term borrowings | 12.9 | 8.3 | ||
Current portion of long-term borrowings | 24.8 | 19.6 | ||
Long-term borrowings | 3,877.9 | 3,236 | ||
2024 Dollar Term Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan | 1,960 | 0 | ||
Unamortized original issue discount | $ (2.5) | |||
2023 Dollar Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan | 0 | 1,545 | ||
2023 Euro Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan | 472.5 | 417.6 | ||
2024 Dollar Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 500 | 500 | ||
Unamortized original issue discount | $ (2) | |||
2024 Euro Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 399.7 | 349.7 | ||
2025 Euro Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 536.9 | $ 469.8 |
Borrowings - Senior Secured Cr
Borrowings - Senior Secured Credit Facilities (Details) € in Millions | Jun. 01, 2017USD ($) | May 31, 2017 | Dec. 14, 2016 | Oct. 31, 2016USD ($) | Aug. 16, 2016 | Aug. 01, 2016 | Feb. 03, 2014USD ($) | Sep. 30, 2016EUR (€) | Apr. 30, 2016USD ($) | Sep. 30, 2014 | Oct. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 15, 2016USD ($) | Dec. 15, 2016EUR (€) | Jul. 31, 2016 | Feb. 03, 2014EUR (€) |
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument covenant maximum consolidated leverage ratio | 4.50 | |||||||||||||||||
Proceeds from maturities, prepayments and calls of other investments (more than) | $ 75,000,000 | |||||||||||||||||
Percentage on excess cash flow for mandatory prepayments of debt | 50.00% | |||||||||||||||||
Decrease in percentage on excess cash flow for mandatory prepayments of debt | 25.00% | |||||||||||||||||
Percentage on first lien leverage ratio for mandatory prepayments of debt | 0.00% | |||||||||||||||||
First lien leverage ratio upper limit | 3 | 4.25 | ||||||||||||||||
First lien leverage ratio lower limit | 2.50 | 5.50 | 3.50 | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | |||||||||||||||||
Gains (losses) on extinguishment of debt | (13,000,000) | $ (88,000,000) | ||||||||||||||||
Repayments of Long-term Debt | 50,000,000 | 1,755,700,000 | $ 127,300,000 | |||||||||||||||
Loss on extinguishment of debt | 13,400,000 | 97,600,000 | 2,500,000 | |||||||||||||||
Unamortized discount | 9,100,000 | 10,000,000 | ||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Expiration period (in years) | 5 years | |||||||||||||||||
Accelerated period prior to expiration period (in days) | 91 days | |||||||||||||||||
Percent of credit facility outstanding for accelerated maturity | 30.00% | 25.00% | ||||||||||||||||
Percent not cash collateralized | 103.00% | |||||||||||||||||
Line of credit facility, maximum amount outstanding during period | 0 | 0 | 0 | |||||||||||||||
Letters of credit outstanding, amount | 35,500,000 | 21,300,000 | ||||||||||||||||
Line of credit facility, remaining borrowing capacity | $ 364,500,000 | 378,700,000 | ||||||||||||||||
Loss on extinguishment of debt | 2,300,000 | |||||||||||||||||
Dollar Term Loan Due 2020 [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, long-term and short-term, combined amount | $ 2,282,800,000 | $ 1,775,300,000 | ||||||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | |||||||||||||||||
Loss on extinguishment of debt | $ 9,600,000 | 4,200,000 | 2,500,000 | |||||||||||||||
Gains (losses) on restructuring of debt | (10,400,000) | |||||||||||||||||
Write off of deferred debt issuance cost | 9,100,000 | 4,700,000 | 1,800,000 | |||||||||||||||
Repayments of debt | $ 150,000,000 | $ 100,000,000 | 100,000,000 | |||||||||||||||
Dollar Term Loan Due 2020 [Member] | Write off of Original Issue Discounts [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Amortization of debt discount (premium) | $ 500,000 | $ 1,500,000 | $ 700,000 | |||||||||||||||
Dollar Term Loan Due 2020 [Member] | Eurocurrency Rate Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument Basis Spread Reduced On Variable Rate | 0.25% | |||||||||||||||||
Debt instrument, basis spread on variable rate | 3.00% | |||||||||||||||||
Dollar Term Loan Due 2020 [Member] | Interest Rate Floor [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||||||||||||||
Dollar Term Loan Due 2020 [Member] | Base Rate [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument Basis Spread Reduced On Variable Rate | 0.25% | |||||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||||||||
Euro Term Loan Due 2020 [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, long-term and short-term, combined amount | € | € 199 | € 397 | ||||||||||||||||
Debt instrument, basis spread on variable rate | 3.00% | |||||||||||||||||
Interest rate, effective percentage | 1.00% | |||||||||||||||||
Debt instrument covenant maximum consolidated leverage ratio | 4.50 | |||||||||||||||||
Repayments of debt | € | € 200 | |||||||||||||||||
Euro Term Loan Due 2020 [Member] | Eurocurrency Rate Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 3.25% | |||||||||||||||||
2023 Dollar Term Loan [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, long-term and short-term, combined amount | $ 1,541,100,000 | $ 1,545,000,000 | ||||||||||||||||
2023 Dollar Term Loan [Member] | Eurocurrency Rate Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||||||||||
2023 Dollar Term Loan [Member] | Interest Rate Floor [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||||||||||
2023 Dollar Term Loan [Member] | Base Rate [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||||||||||
2023 Euro Term Loan [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, long-term and short-term, combined amount | € | € 400 | |||||||||||||||||
Debt instrument periodic payment principal percentage | 1.00% | |||||||||||||||||
2023 Euro Term Loan [Member] | Eurocurrency Rate Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||||||||||||||
2023 Euro Term Loan [Member] | Base Rate [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||||||||||
2024 Dollar Term Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, long-term and short-term, combined amount | $ 2,000,000,000 | |||||||||||||||||
Debt instrument periodic payment principal percentage | 1.00% | |||||||||||||||||
Repayments of Long-term Debt | $ 30,000,000 | |||||||||||||||||
Loss on extinguishment of debt | 400,000 | |||||||||||||||||
Write off of deferred debt issuance cost | 300,000 | |||||||||||||||||
Amortization of debt discount (premium) | $ 100,000 | |||||||||||||||||
Discount, percent of par | 99.875% | |||||||||||||||||
Unamortized discount | $ 2,500,000 | |||||||||||||||||
2024 Dollar Term Loans [Member] | Eurocurrency Rate Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||||||||
2024 Dollar Term Loans [Member] | Interest Rate Floor [Member] | Eurocurrency Rate Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.00% | |||||||||||||||||
2024 Dollar Term Loans [Member] | Base Rate [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||||||||||||||
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | 3.50% | ||||||||||||||||
Senior Secured Credit Facilities [Member] | Eurodollar [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.00% | |||||||||||||||||
Basis spread reduced on variable rate, step-down percent for 3.00:1.00 leverage ratio | 2.50% | |||||||||||||||||
Basis spread reduced on variable rate, step-down percent for 2.50:1.00 leverage ratio | 2.25% | |||||||||||||||||
Senior Secured Credit Facility, Base Rate Loans [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | 2.50% | ||||||||||||||||
Basis spread reduced on variable rate, step-down percent for 3.00:1.00 leverage ratio | 1.50% | |||||||||||||||||
Basis spread reduced on variable rate, step-down percent for 2.50:1.00 leverage ratio | 1.25% | |||||||||||||||||
Senior Secured Credit Facility, Base Rate Loans [Member] | Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||||||||||
Senior Secured Credit Facility, Base Rate Loans [Member] | Adjusted Euro Currency Rate [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% |
Borrowings - Senior Notes (Det
Borrowings - Senior Notes (Details) € in Millions, $ in Millions | Aug. 16, 2016USD ($) | Feb. 01, 2013USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 27, 2016EUR (€) | Aug. 16, 2016EUR (€) | Feb. 01, 2013EUR (€) |
Debt Instrument [Line Items] | ||||||||
Gains (losses) on extinguishment of debt | $ (13.4) | $ (97.6) | $ (2.5) | |||||
Unamortized discount | $ 9.1 | $ 10 | ||||||
7.375% Senior Unsecured Notes Due 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity year | 2,021 | |||||||
5.750% Senior Secured Notes Due 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity year | 2,021 | |||||||
2021 Dollar Senior Notes [Member] | 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage | 105.531% | |||||||
Euro Senior Notes [Member] | 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage | 104.313% | |||||||
2024 Dollar Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||
2024 Dollar Senior Notes [Member] | 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage | 103.656% | |||||||
2021 Dollar Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 750 | |||||||
Debt instrument, interest rate, stated percentage | 7.375% | 7.375% | ||||||
Gains (losses) on extinguishment of debt | $ (56.9) | |||||||
Debt instrument redemption price monetary | (41.5) | |||||||
Write off of deferred debt issuance cost | 13 | |||||||
Fee amount | $ 2.4 | |||||||
2021 Euro Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | € | € 250 | |||||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | ||||||
Gains (losses) on extinguishment of debt | $ (18.4) | |||||||
Debt instrument redemption price monetary | (12.1) | |||||||
Write off of deferred debt issuance cost | 5.6 | |||||||
Fee amount | $ 0.7 | |||||||
2024 Dollar Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 500 | |||||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | ||||||
Debt instrument, redemption price, percentage | 104.875% | |||||||
Discount, percent of par | 99.951% | 99.951% | ||||||
Unamortized discount | $ 2 | |||||||
Redemption, percent of principal required to be outstanding | 50.00% | |||||||
2024 Dollar Senior Notes [Member] | Any Time Prior to August 15, 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage of principal amount redeemed | 40.00% | |||||||
2024 Euro Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | € | € 335 | |||||||
Debt instrument, interest rate, stated percentage | 4.25% | 4.25% | ||||||
Debt instrument, redemption price, percentage | 104.25% | |||||||
Redemption, percent of principal required to be outstanding | 50.00% | |||||||
Redemption price, percentage if change in control occurs | 101.00% | |||||||
2024 Euro Senior Notes [Member] | Any Time Prior to August 15, 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage of principal amount redeemed | 40.00% | |||||||
2025 Euro Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | € | € 450 | |||||||
Debt instrument, interest rate, stated percentage | 3.75% | 3.75% | ||||||
Debt instrument, redemption price, percentage | 103.75% | |||||||
Redemption, percent of principal required to be outstanding | 50.00% | |||||||
Redemption price, percentage if change in control occurs | 101.00% | |||||||
2025 Euro Senior Notes [Member] | Any Time Prior to January 15, 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage of principal amount redeemed | 40.00% |
Borrowings - Debt Instrument R
Borrowings - Debt Instrument Redemption (Details) | Feb. 01, 2013 | Dec. 31, 2017 |
2024 Dollar Senior Notes [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 101.00% | |
2024 Dollar Senior Notes [Member] | 2019 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 103.656% | |
2024 Dollar Senior Notes [Member] | 2020 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 102.438% | |
2024 Dollar Senior Notes [Member] | 2021 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 101.219% | |
2024 Dollar Senior Notes [Member] | 2022 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 100.00% | |
2024 Euro Senior Notes [Member] | 2019 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 103.188% | |
2024 Euro Senior Notes [Member] | 2020 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 102.125% | |
2024 Euro Senior Notes [Member] | 2021 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 101.063% | |
2024 Euro Senior Notes [Member] | 2022 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 100.00% | |
2025 Euro Senior Notes [Member] | 2019 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 102.813% | |
2025 Euro Senior Notes [Member] | 2020 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 101.875% | |
2025 Euro Senior Notes [Member] | 2021 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 100.938% | |
2025 Euro Senior Notes [Member] | 2022 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 100.00% |
Borrowings - Schedule of Matur
Borrowings - Schedule of Maturities of Long-term Debt (Details) $ in Millions | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 40.5 |
2,019 | 26.5 |
2,020 | 25.7 |
2,021 | 25.7 |
2,022 | 52.4 |
Thereafter | 3,778.6 |
Long-term debt | 3,949.4 |
Lease obligations | 134.7 |
Build-to-suit Lease and Sale-leaseback Financing [Member] | |
Debt Instrument [Line Items] | |
Lease obligations | $ 14.5 |
Fair Value Accounting (Details)
Fair Value Accounting (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairments | $ 7.6 | $ 10.5 | $ 30.6 |
Available-for-sale securities | 5.2 | 4.4 | |
Contingent consideration, fair value | 8.9 | 10 | |
Adjustments to contingent consideration | 3 | (0.8) | |
2024 Dollar Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 524.4 | 500 | |
2024 Euro Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 427.7 | 363.8 | |
2025 Euro Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 571.8 | 472.2 | |
2024 Dollar Term Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 1,967.4 | ||
2023 Euro Term Loan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 475.5 | 421.8 | |
2023 Dollar Term Loan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 1,560.5 | ||
In Process Research and Development [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill and intangible asset impairment | $ 1.7 | 0 | $ 0.1 |
Subsidiaries [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairments of property, plant and equipment | 10.5 | ||
VENEZUELA | Subsidiaries [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Operating asset impairment | $ 57.9 |
Derivative Financial Instrum115
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 1.2 | $ 0.1 |
Derivative liability | 2.6 | 0.8 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 0.1 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 0.8 |
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1.2 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 2.6 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 0.1 |
Derivative liability | 0.7 | 0.5 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 0.1 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 0.7 | $ 0.5 |
Derivative Financial Instrum116
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) - Interest Rate Contract [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Loss Recognized in OCI on Derivatives (Effective Portion) | $ 1.8 | $ 2 | $ 5.5 |
Interest Expense [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion) | (0.4) | 5.9 | 6.5 |
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion) | $ (2.3) | $ 1.2 | $ 0.4 |
Derivative Financial Instrum117
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
(Gain) loss on non-derivative instruments, net | $ 11.8 | $ 4.3 | $ (5.5) |
Other Nonoperating Income (Expense) [Member] | Foreign Exchange Contract [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
(Gain) loss on non-derivative instruments, net | 11.2 | 4.3 | (5.6) |
Interest Expense [Member] | Interest Rate Cap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
(Gain) loss on non-derivative instruments, net | $ 0.6 | $ 0 | $ 0.1 |
Derivative Financial Instrum118
Derivative Financial Instruments - Additional Information (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($)swap | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Dec. 31, 2013USD ($)swap | Dec. 31, 2013EUR (€)swap | |
Derivatives, Fair Value [Line Items] | |||||
Number of interest rate swaps | swap | 5 | 5 | |||
Number of interest rate caps | swap | 4 | ||||
2024 Dollar Term Loans [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cap interest rate | 1.50% | ||||
Euro Term Loan Due 2020 [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | € | € 300 | ||||
Cap interest rate | 1.50% | 1.50% | |||
2023 Euro Term Loan [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cap interest rate | 1.25% | 1.25% | |||
Debt instrument, unamortized premium | $ 0.6 | ||||
Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | $ 1,173 | ||||
Derivative, maturity date | Sep. 29, 2017 | ||||
Interest Rate Cap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | $ 850 | ||||
Interest Rate Cap [Member] | Euro Term Loan Due 2020 [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Debt instrument, unamortized premium | $ 3.1 | ||||
2023 Euro Term Loan [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | € | € 388 | ||||
December 31, 2019 [Member] | Interest Rate Cap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 600 | ||||
Deferred premium | 8.6 | ||||
December 31, 2019 [Member] | Interest Rate Cap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 250 | ||||
Deferred premium | $ 8.1 |
Segments - Reconciliation of R
Segments - Reconciliation of Revenue from Segments to Consolidated (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Number of operating segments | Segment | 2 | ||
Net sales | $ 4,352.9 | $ 4,068.8 | $ 4,083.9 |
Performance Coatings [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 2,675.1 | 2,398.5 | 2,381.8 |
Performance Coatings [Member] | Refinish [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,645.2 | 1,679.7 | 1,698.7 |
Performance Coatings [Member] | Industrial [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,029.9 | 718.8 | 683.1 |
Transportation Coatings [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,677.8 | 1,670.3 | 1,702.1 |
Transportation Coatings [Member] | Light Vehicle [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,322.8 | 1,337.7 | 1,310.6 |
Transportation Coatings [Member] | Commercial Vehicle [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 355 | $ 332.6 | $ 391.5 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 4,352.9 | $ 4,068.8 | $ 4,083.9 |
Equity in earnings (losses) in unconsolidated affiliates | 1 | 0.2 | 1.2 |
Adjusted EBITDA | 885.2 | 902.4 | 863.9 |
Investment in unconsolidated affiliates | 15.5 | 13.6 | 12.4 |
Performance Coatings [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,675.1 | 2,398.5 | 2,381.8 |
Equity in earnings (losses) in unconsolidated affiliates | 0.3 | (0.2) | 0.6 |
Adjusted EBITDA | 564.2 | 549.7 | 535.8 |
Investment in unconsolidated affiliates | 2.9 | 2.5 | 4 |
Transportation Coatings [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,677.8 | 1,670.3 | 1,702.1 |
Equity in earnings (losses) in unconsolidated affiliates | 0.7 | 0.4 | 0.6 |
Adjusted EBITDA | 321 | 352.7 | 328.1 |
Investment in unconsolidated affiliates | $ 12.6 | $ 11.1 | $ 8.4 |
Segments - Reconciliation of O
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before income taxes | $ 189.6 | $ 82.7 | $ 157.9 | |
Interest expense, net | 147 | 178.2 | 196.5 | |
Depreciation and amortization | (347.5) | (322.1) | (307.7) | |
Adjusted EBITDA | 684.1 | 583 | 662.1 | |
Debt extinguishment and refinancing related costs | 13.4 | 97.6 | 2.5 | |
Foreign exchange remeasurement losses | 7.4 | 30.6 | 93.7 | |
Long-term employee benefit plan adjustments | 1.4 | 1.5 | (0.3) | |
Termination benefits and other employee related costs | 35.3 | 61.8 | 36.6 | |
Consulting and advisory fees | (0.1) | 10.4 | 23.9 | |
Transition-related costs | 7.7 | 0 | (3.4) | |
Offering and transactional costs | 18.4 | 6 | (1.5) | |
Stock-based compensation | 38.5 | 41.1 | 30.2 | |
Other Adjustments | 3.6 | 5 | (5.8) | |
Dividends in respect of noncontrolling interest | (3) | (3) | (4.7) | |
Deconsolidation Impacts and Impairment of Real Estate and Long Lived Operating Assets | 78.5 | 68.4 | 30.6 | |
Adjusted Earnings Before Interest Tax Depreciation And Amortization | 885.2 | 902.4 | 863.9 | |
Gains (losses) on extinguishment of debt | (13) | (88) | ||
Loss on extinguishment of debt | 13.4 | 97.6 | 2.5 | |
Contemplated merger and acquisition costs | 10 | |||
Stock-based compensation attributable to accelerated vesting | 8.2 | |||
Venezuela deconsolidation charge | 70.9 | 0 | 0 | |
Impairments | 7.6 | 10.5 | 30.6 | |
Term Loan [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Loss on extinguishment of debt | 0.4 | 9.6 | 2.5 | |
VENEZUELA | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Exchange gains (losses) | (1.8) | (23.5) | (51.5) | |
Subsidiaries [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Exchange gains (losses) | (1.8) | (23.5) | (51.5) | |
Impairments of property, plant and equipment | 10.5 | |||
Subsidiaries [Member] | VENEZUELA | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating asset impairment | 57.9 | |||
VENEZUELA | Subsidiaries [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Venezuela deconsolidation charge | $ (70.9) | |||
Operating asset impairment | $ 68.4 | |||
Impairments of property, plant and equipment | $ 10.5 | $ 30.6 |
Segments - Schedule of Revenue
Segments - Schedule of Revenue from External Customers and Long-lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 4,352.9 | $ 4,068.8 | $ 4,083.9 |
Long-lived assets | 1,388.6 | 1,315.7 | |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,607.7 | 1,426.7 | 1,368.6 |
Long-lived assets | 457.9 | 419.3 | |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,538.3 | 1,455.3 | 1,425.3 |
Long-lived assets | 507.4 | 456.9 | |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 748.1 | 723.9 | 717.4 |
Long-lived assets | 258.9 | 248 | |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 458.8 | 462.9 | $ 572.6 |
Long-lived assets | 164.4 | 191.5 | |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 217.2 | $ 204 | |
CHINA | Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 12.00% | 13.00% | 13.00% |
GERMANY | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 279 | $ 262.2 | |
GERMANY | Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 8.00% | 9.00% | 9.00% |
MEXICO | Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 6.00% | 6.00% | 6.00% |
CANADA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 25.8 | $ 20 | |
CANADA | Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 4.00% | 4.00% | 3.00% |
BRAZIL | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 78.6 | $ 94.9 |
Accumulated Other Comprehens123
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | $ (350.4) | ||
Other comprehensive income (loss), net of tax | 111.6 | $ (81.2) | $ (169.6) |
Accumulated other comprehensive income (loss), ending balance | (241) | (350.4) | |
Unrealized Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | (292.2) | (232.8) | (72.1) |
Current year deferrals to AOCI | 83.4 | (59.4) | (160.7) |
Reclassifications from AOCI to Net income | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 83.4 | (59.4) | (160.7) |
Accumulated other comprehensive income (loss), ending balance | (208.8) | (292.2) | (232.8) |
Pension Plan Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | (56.6) | (33.4) | (31.2) |
Current year deferrals to AOCI | 17.1 | (22.3) | (4.3) |
Reclassifications from AOCI to Net income | 8.1 | (0.9) | 2.1 |
Other comprehensive income (loss), net of tax | 25.2 | (23.2) | (2.2) |
Accumulated other comprehensive income (loss), ending balance | (31.4) | (56.6) | (33.4) |
Unrealized Gain on Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | 0.4 | 0.1 | (0.2) |
Current year deferrals to AOCI | 0.4 | 0.3 | 0.3 |
Reclassifications from AOCI to Net income | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 0.4 | 0.3 | 0.3 |
Accumulated other comprehensive income (loss), ending balance | 0.8 | 0.4 | 0.1 |
Unrealized Gain (Loss) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | (2) | (3.2) | 0.2 |
Current year deferrals to AOCI | (1.6) | (2.5) | 0.6 |
Reclassifications from AOCI to Net income | 2 | 3.7 | (4) |
Other comprehensive income (loss), net of tax | 0.4 | 1.2 | (3.4) |
Accumulated other comprehensive income (loss), ending balance | (1.6) | (2) | (3.2) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | (350.4) | (269.3) | (103.3) |
Current year deferrals to AOCI | 99.3 | (83.9) | (164.1) |
Reclassifications from AOCI to Net income | 10.1 | 2.8 | (1.9) |
Other comprehensive income (loss), net of tax | 109.4 | (81.1) | (166) |
Accumulated other comprehensive income (loss), ending balance | $ (241) | $ (350.4) | $ (269.3) |
Accumulated Other Comprehens124
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax benefit on loss due to deconsolidation of Venezuela | $ (6.1) | $ (5.7) | $ 0 |
Cumulative pension and other postretirement benefit plans, tax benefits | 13 | 19.1 | 13.4 |
Cumulative unrealized gain (loss) on derivatives, tax | 0.6 | $ 1.1 | $ 1.9 |
VENEZUELA | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI loss due to Venezuela deconsolidation, net of tax | (5.9) | ||
Tax benefit on loss due to deconsolidation of Venezuela | $ 2.6 |
Venezuela (Details)
Venezuela (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Venezuela deconsolidation charge | $ (70.9) | $ 0 | $ 0 | ||||||||
Assets | $ 6,832.2 | $ 5,866.2 | 6,832.2 | 5,866.2 | |||||||
Accounts and notes receivable, net | 870.2 | 801.9 | 870.2 | 801.9 | |||||||
Net sales | 4,352.9 | 4,068.8 | 4,083.9 | ||||||||
Operating income (loss) | 362.3 | 403.6 | 465.6 | ||||||||
Net income attributable to controlling interests | (61.5) | $ 54.9 | $ (20.8) | $ 64.1 | $ (37.2) | $ (6.6) | $ 50.7 | $ 31.9 | 36.7 | 38.8 | 91.6 |
Performance Coatings [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Net sales | 2,675.1 | 2,398.5 | 2,381.8 | ||||||||
Transportation Coatings [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Net sales | 1,677.8 | 1,670.3 | 1,702.1 | ||||||||
Subsidiaries [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Impairment of real estate investment | 10.5 | ||||||||||
Subsidiaries [Member] | Performance Coatings [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Operating asset impairment | 30.6 | ||||||||||
Subsidiaries [Member] | Transportation Coatings [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Operating asset impairment | 27.3 | ||||||||||
Subsidiaries [Member] | Property, Plant and Equipment [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Operating asset impairment | 8.6 | ||||||||||
Subsidiaries [Member] | Customer Lists [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Operating asset impairment | 49.3 | ||||||||||
VENEZUELA | Subsidiaries [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Venezuela deconsolidation charge | 70.9 | ||||||||||
Assets | 30 | 30 | |||||||||
Accounts and notes receivable, net | 35 | 35 | |||||||||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 5.9 | ||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 0 | 0 | |||||||||
Net sales | 2.5 | 50.8 | 131.2 | ||||||||
Operating income (loss) | 2.8 | 36.5 | 63 | ||||||||
Net income attributable to controlling interests | $ 5.8 | 68.5 | 32 | ||||||||
Operating asset impairment | $ 68.4 | ||||||||||
Impairment of real estate investment | $ 10.5 | $ 30.6 |
Quarterly Financial Informat126
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial information | |||||||||||
Total revenue | $ 1,172.4 | $ 1,096.3 | $ 1,094.6 | $ 1,013.7 | $ 1,032.6 | $ 1,026.3 | $ 1,070.6 | $ 963.2 | $ 4,377 | $ 4,092.7 | $ 4,110 |
Cost of goods sold | 746 | 702.5 | 690 | 641.1 | 641.8 | 630.4 | 649 | 606.4 | 2,779.6 | 2,527.6 | 2,597.3 |
Net income (loss) | (55.6) | 56.3 | (18.9) | 65.9 | (35.1) | (5.4) | 52.3 | 32.8 | 47.7 | 44.6 | 95.8 |
Net income (loss) attributable to controlling interests | $ (61.5) | $ 54.9 | $ (20.8) | $ 64.1 | $ (37.2) | $ (6.6) | $ 50.7 | $ 31.9 | $ 36.7 | $ 38.8 | $ 91.6 |
Basic net income per share (in dollars per share) | $ (0.26) | $ 0.23 | $ (0.09) | $ 0.27 | $ (0.16) | $ (0.03) | $ 0.21 | $ 0.13 | $ 0.15 | $ 0.16 | $ 0.39 |
Diluted net income per share (in dollars per share) | $ (0.26) | $ 0.22 | $ (0.09) | $ 0.26 | $ (0.16) | $ (0.03) | $ 0.21 | $ 0.13 | $ 0.15 | $ 0.16 | $ 0.38 |
Venezuela deconsolidation charge | $ (70.9) | $ 0 | $ 0 | ||||||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | 107.8 | ||||||||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) attributable to Controlling Interest | 112.5 | ||||||||||
Restructuring Costs | $ 28.7 | $ 36.6 | |||||||||
Subsidiaries [Member] | |||||||||||
Quarterly Financial information | |||||||||||
Impairment of real estate investment | 10.5 | ||||||||||
Subsidiaries [Member] | VENEZUELA | |||||||||||
Quarterly Financial information | |||||||||||
Net income (loss) attributable to controlling interests | 5.8 | 68.5 | 32 | ||||||||
Venezuela deconsolidation charge | $ 70.9 | ||||||||||
Impairment of real estate investment | $ 10.5 | $ 30.6 | |||||||||
Operating asset impairment | $ 68.4 |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 13.7 | $ 10.7 | $ 9.9 |
Additions | 3.5 | 3.4 | 4.9 |
Deductions | (1.3) | (0.4) | (4.1) |
Balance at End of Year | 15.9 | 13.7 | 10.7 |
Valuation Allowance for Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 135.4 | 127.8 | 101.9 |
Additions | 78.8 | 9.6 | 34.4 |
Deductions | 0 | (2) | (8.5) |
Balance at End of Year | $ 214.2 | $ 135.4 | $ 127.8 |