Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 20, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36733 | |
Entity Registrant Name | AXALTA COATING SYSTEMS LTD. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-1073028 | |
Entity Address, Address Line One | Two Commerce Square | |
Entity Address, Address Line Two | 2001 Market Street | |
Entity Address, Address Line Three | Suite 3600 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 855 | |
Local Phone Number | 547-1461 | |
Title of 12(b) Security | Common Shares, $1.00 par value | |
Trading Symbol | AXTA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 230,160,918 | |
Entity Central Index Key | 0001616862 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,126.8 | $ 652.7 | $ 2,190.4 | $ 1,636.2 |
Cost of goods sold | 752.8 | 499.2 | 1,437.3 | 1,146 |
Selling, general and administrative expenses | 184.2 | 154.2 | 363.3 | 349.6 |
Other operating (benefits) charges | (45.7) | 24.7 | 57.1 | 56.3 |
Research and development expenses | 15.8 | 11.2 | 31.4 | 27.8 |
Amortization of acquired intangibles | 29.3 | 27.9 | 58.3 | 55.9 |
Income (loss) from operations | 190.4 | (64.5) | 243 | 0.6 |
Interest expense, net | 33.4 | 36.1 | 66.9 | 72.6 |
Other income, net | (8.1) | (2.2) | (8.5) | (1.4) |
Income (loss) before income taxes | 165.1 | (98.4) | 184.6 | (70.6) |
Provision (benefit) for income taxes | 38.7 | (15.2) | 42.5 | (39.8) |
Net income (loss) | 126.4 | (83.2) | 142.1 | (30.8) |
Less: Net (loss) income attributable to noncontrolling interests | 0 | (0.4) | 0.5 | (0.2) |
Net income (loss) attributable to controlling interests | $ 126.4 | $ (82.8) | $ 141.6 | $ (30.6) |
Basic net income (loss) per share (in dollars per share) | $ 0.54 | $ (0.35) | $ 0.61 | $ (0.13) |
Diluted net income (loss) per share (in dollars per share) | $ 0.54 | $ (0.35) | $ 0.60 | $ (0.13) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 126.4 | $ (83.2) | $ 142.1 | $ (30.8) |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 39.3 | 7 | 1.7 | (79.5) |
Unrealized gain (loss) on derivatives | 6.9 | (2.6) | 16.1 | (43.3) |
Unrealized gain on pension and other benefit plan obligations | 1.3 | 0.2 | 2.5 | 0 |
Other comprehensive income (loss), before tax | 47.5 | 4.6 | 20.3 | (122.8) |
Income tax provision (benefit) related to items of other comprehensive income (loss) | 1.3 | (0.6) | 3.1 | (6.4) |
Other comprehensive income (loss), net of tax | 46.2 | 5.2 | 17.2 | (116.4) |
Total comprehensive income (loss) | 172.6 | (78) | 159.3 | (147.2) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.6 | 0.5 | 0.9 | (2.5) |
Comprehensive income (loss) attributable to controlling interests | $ 172 | $ (78.5) | $ 158.4 | $ (144.7) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,230.9 | $ 1,360.9 |
Restricted cash | 10.6 | 3.1 |
Accounts and notes receivable, net | 1,035.7 | 869.8 |
Inventories | 614.5 | 559.9 |
Prepaid expenses and other current assets | 156.5 | 132.2 |
Total current assets | 3,048.2 | 2,925.9 |
Property, plant and equipment, net | 1,183.3 | 1,194.5 |
Goodwill | 1,294.3 | 1,294.9 |
Identifiable intangibles, net | 1,096.6 | 1,148.8 |
Other assets | 587 | 593.1 |
Total assets | 7,209.4 | 7,157.2 |
Current liabilities: | ||
Accounts payable | 597.5 | 564.4 |
Current portion of borrowings | 40.5 | 54.2 |
Other accrued liabilities | 578.2 | 562.3 |
Total current liabilities | 1,216.2 | 1,180.9 |
Long-term borrowings | 3,813.4 | 3,838.5 |
Accrued pensions | 296 | 309.9 |
Deferred income taxes | 116.6 | 114 |
Other liabilities | 231.9 | 234.1 |
Total liabilities | 5,674.1 | 5,677.4 |
Commitments and contingent liabilities (Note 5) | ||
Shareholders’ equity: | ||
Common shares, $1.00 par, 1,000.0 shares authorized, 251.7 and 250.9 shares issued at June 30, 2021 and December 31, 2020, respectively | 251.7 | 250.9 |
Capital in excess of par | 1,506.9 | 1,487.1 |
Retained earnings | 704.9 | 563.3 |
Treasury shares, at cost, 20.3 and 16.1 shares at June 30, 2021 and December 31, 2020, respectively | (567.2) | (443.5) |
Accumulated other comprehensive loss | (408) | (424.8) |
Total Axalta shareholders’ equity | 1,488.3 | 1,433 |
Noncontrolling interests | 47 | 46.8 |
Total shareholders’ equity | 1,535.3 | 1,479.8 |
Total liabilities and shareholders’ equity | $ 7,209.4 | $ 7,157.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common shares authorized (in shares) | 1,000 | 1,000 |
Common shares issued (in shares) | 251.7 | 250.9 |
Treasury shares, at cost (in shares) | 20.3 | 16.1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Cumulative effect of an accounting change | Common Stock | Capital In Excess Of Par | Retained Earnings | Retained EarningsCumulative effect of an accounting change | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests |
Beginning balance (in shares) at Dec. 31, 2019 | 234.9 | ||||||||
Beginning balance at Dec. 31, 2019 | $ 1,409.6 | $ (1.5) | $ 249.9 | $ 1,474.1 | $ 443.2 | $ (1.5) | $ (417.5) | $ (395.5) | $ 55.4 |
Comprehensive income (loss): | |||||||||
Net income | 52.4 | 52.2 | 0.2 | ||||||
Net realized and unrealized gain (loss) on derivatives, net of tax | (34.7) | (34.7) | |||||||
Long-term employee benefit plans, net of tax | (0.4) | (0.4) | |||||||
Foreign currency translation, net of tax | (86.5) | (83.3) | (3.2) | ||||||
Total comprehensive income (loss) | (69.2) | 52.2 | (118.4) | (3) | |||||
Recognition of stock-based compensation | 5.1 | 5.1 | |||||||
Shares issued under compensation plans (in shares) | 0.4 | ||||||||
Shares issued under compensation plans | (1.1) | $ 0.5 | (1.6) | ||||||
Changes in ownership of noncontrolling interests | (1.6) | 0.5 | (2.1) | ||||||
Dividends declared to noncontrolling interests | (0.5) | (0.5) | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 235.3 | ||||||||
Ending balance at Mar. 31, 2020 | 1,340.8 | $ 250.4 | 1,478.1 | 493.9 | (417.5) | (513.9) | 49.8 | ||
Beginning balance (in shares) at Dec. 31, 2019 | 234.9 | ||||||||
Beginning balance at Dec. 31, 2019 | 1,409.6 | $ (1.5) | $ 249.9 | 1,474.1 | 443.2 | $ (1.5) | (417.5) | (395.5) | 55.4 |
Comprehensive income (loss): | |||||||||
Net income | (30.8) | ||||||||
Total comprehensive income (loss) | (147.2) | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 235.4 | ||||||||
Ending balance at Jun. 30, 2020 | 1,258.6 | $ 250.5 | 1,479.5 | 411.1 | (418.4) | (509.6) | 45.5 | ||
Beginning balance (in shares) at Mar. 31, 2020 | 235.3 | ||||||||
Beginning balance at Mar. 31, 2020 | 1,340.8 | $ 250.4 | 1,478.1 | 493.9 | (417.5) | (513.9) | 49.8 | ||
Comprehensive income (loss): | |||||||||
Net income | (83.2) | (82.8) | (0.4) | ||||||
Net realized and unrealized gain (loss) on derivatives, net of tax | (2.2) | (2.2) | |||||||
Long-term employee benefit plans, net of tax | 0.4 | 0.4 | |||||||
Foreign currency translation, net of tax | 7 | 6.1 | 0.9 | ||||||
Total comprehensive income (loss) | (78) | (82.8) | 4.3 | 0.5 | |||||
Recognition of stock-based compensation | 6.1 | 6.1 | |||||||
Shares issued under compensation plans (in shares) | 0.1 | ||||||||
Shares issued under compensation plans | 1.2 | $ 0.1 | 1.1 | ||||||
Changes in redeemable noncontrolling interests | (10.6) | (5.8) | (4.8) | ||||||
Common stock purchases | (0.9) | (0.9) | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 235.4 | ||||||||
Ending balance at Jun. 30, 2020 | 1,258.6 | $ 250.5 | 1,479.5 | 411.1 | (418.4) | (509.6) | 45.5 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 234.8 | ||||||||
Beginning balance at Dec. 31, 2020 | 1,479.8 | $ 250.9 | 1,487.1 | 563.3 | (443.5) | (424.8) | 46.8 | ||
Comprehensive income (loss): | |||||||||
Net income | 15.7 | 15.2 | 0.5 | ||||||
Net realized and unrealized gain (loss) on derivatives, net of tax | 7.9 | 7.9 | |||||||
Long-term employee benefit plans, net of tax | 0.7 | 0.7 | |||||||
Foreign currency translation, net of tax | (37.6) | (37.4) | (0.2) | ||||||
Total comprehensive income (loss) | (13.3) | 15.2 | (28.8) | 0.3 | |||||
Recognition of stock-based compensation | 3.6 | 3.6 | |||||||
Shares issued under compensation plans (in shares) | 0.3 | ||||||||
Shares issued under compensation plans | 0.1 | $ 0.3 | (0.2) | ||||||
Common stock purchases (in shares) | (2.3) | ||||||||
Common stock purchases | (63.7) | (63.7) | |||||||
Dividends declared to noncontrolling interests | (0.7) | (0.7) | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 232.8 | ||||||||
Ending balance at Mar. 31, 2021 | 1,405.8 | $ 251.2 | 1,490.5 | 578.5 | (507.2) | (453.6) | 46.4 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 234.8 | ||||||||
Beginning balance at Dec. 31, 2020 | 1,479.8 | $ 250.9 | 1,487.1 | 563.3 | (443.5) | (424.8) | 46.8 | ||
Comprehensive income (loss): | |||||||||
Net income | 142.1 | ||||||||
Total comprehensive income (loss) | $ 159.3 | ||||||||
Shares issued under compensation plans (in shares) | 0.5 | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 231.4 | ||||||||
Ending balance at Jun. 30, 2021 | $ 1,535.3 | $ 251.7 | 1,506.9 | 704.9 | (567.2) | (408) | 47 | ||
Beginning balance (in shares) at Mar. 31, 2021 | 232.8 | ||||||||
Beginning balance at Mar. 31, 2021 | 1,405.8 | $ 251.2 | 1,490.5 | 578.5 | (507.2) | (453.6) | 46.4 | ||
Comprehensive income (loss): | |||||||||
Net income | 126.4 | 126.4 | 0 | ||||||
Net realized and unrealized gain (loss) on derivatives, net of tax | 5.9 | 5.9 | |||||||
Long-term employee benefit plans, net of tax | 1 | 1 | |||||||
Foreign currency translation, net of tax | 39.3 | 38.7 | 0.6 | ||||||
Total comprehensive income (loss) | 172.6 | 126.4 | 45.6 | 0.6 | |||||
Recognition of stock-based compensation | 4.2 | 4.2 | |||||||
Shares issued under compensation plans (in shares) | 0.5 | ||||||||
Shares issued under compensation plans | 12.7 | $ 0.5 | 12.2 | ||||||
Common stock purchases (in shares) | (1.9) | ||||||||
Common stock purchases | (60) | (60) | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 231.4 | ||||||||
Ending balance at Jun. 30, 2021 | $ 1,535.3 | $ 251.7 | $ 1,506.9 | $ 704.9 | $ (567.2) | $ (408) | $ 47 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Loss on derivatives, tax (benefit) expense | $ (1) | $ 1.3 | $ (0.4) | $ (6) |
Long-term employee benefit plans, net of tax expense | (0.3) | 0.5 | 0.2 | 0.2 |
Foreign currency translation, tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||
Net income (loss) | $ 142.1 | $ (30.8) |
Adjustment to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 155.4 | 163.2 |
Amortization of deferred financing costs and original issue discount | 4.2 | 4.1 |
Debt extinguishment and refinancing related costs | 0.2 | 2.4 |
Deferred income taxes | 5.2 | (61.2) |
Realized and unrealized foreign exchange losses, net | 9.4 | 2.8 |
Stock-based compensation | 7.8 | 11.2 |
Divestiture and impairment charges | 0 | 3.2 |
Interest income on swaps designated as net investment hedges | (7.1) | (7.3) |
Other non-cash, net | 9.2 | 8.3 |
Changes in operating assets and liabilities: | ||
Trade accounts and notes receivable | (154.2) | 136.8 |
Inventories | (59.1) | 32.5 |
Prepaid expenses and other assets | (53.4) | (60.3) |
Accounts payable | 60 | (131) |
Other accrued liabilities | 24.5 | (87.9) |
Other liabilities | 2.9 | 11.5 |
Cash provided by (used for) operating activities | 147.1 | (2.5) |
Investing activities: | ||
Acquisitions, net of cash acquired | (37.6) | 0 |
Purchase of property, plant and equipment | (60.3) | (42.4) |
Interest proceeds on swaps designated as net investment hedges | 7.1 | 7.3 |
Other investing activities, net | (0.5) | 0.8 |
Cash used for investing activities | (91.3) | (34.3) |
Financing activities: | ||
Proceeds from long-term borrowings | 0 | 500 |
Payments on short-term borrowings | (41.1) | (18.6) |
Payments on long-term borrowings | (14.2) | (313.1) |
Financing-related costs | (2.5) | (6) |
Purchases of common stock | (123.7) | (0.9) |
Net cash flows associated with stock-based awards | 12.8 | 0.3 |
Purchase of noncontrolling interests | 0 | (1.6) |
Other financing activities, net | (1.2) | (1) |
Cash (used for) provided by financing activities | (169.9) | 159.1 |
(Decrease) increase in cash | (114.1) | 122.3 |
Effect of exchange rate changes on cash | (8.4) | (16.3) |
Cash at beginning of period | 1,364 | 1,020.5 |
Cash at end of period | 1,241.5 | 1,126.5 |
Cash at end of period reconciliation: | ||
Cash and cash equivalents | 1,230.9 | 1,123.6 |
Restricted cash | 10.6 | 2.9 |
Cash at end of period | $ 1,241.5 | $ 1,126.5 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The interim condensed consolidated financial statements included herein are unaudited. 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 Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at June 30, 2021 and December 31, 2020, the results of operations, comprehensive income (loss) and changes in shareholders' equity for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months then ended. All intercompany balances and transactions have been eliminated. These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The interim unaudited condensed 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. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for a full year. Summary of Significant Accounting Policies Recently Adopted Accounting Guidance In March 2020, we adopted ASU 2020-04, "Reference Rate Reform" which provides optional expedients exercisable through December 31, 2022 to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which clarified the scope and application of the original guidance. As of June 30, 2021, the expedients provided in this standard do not impact the Company. We will continue to monitor for potential impacts on our financial statements. In December 2020, we adopted ASU 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and updating provisions related to accounting for franchise (or similar) tax partially based on income and interim recognition of enactment of tax law changes. The adoption of this standard did not have a material impact on our financial statements. Risks and Uncertainties |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUEConsideration for products in which control has transferred to our customers that is conditional on something other than the passage of time is recorded as a contract asset within prepaid expenses and other current assets on the balance sheet. The contract asset balances at June 30, 2021 and December 31, 2020 were $39.7 million and $37.2 million, respectively. We provide certain customers with incremental up-front consideration, subject to clawback provisions, including Business Incentive Plan assets ("BIPs"), which is capitalized as a component of other assets and amortized over the estimated life of the contractual arrangement as a reduction of net sales. At June 30, 2021 and December 31, 2020, the total carrying value of BIPs were $156.1 million and $165.4 million, respectively, and are presented within other assets in the condensed consolidated balance sheets. For the three and six months ended June 30, 2021 and 2020, $13.7 million, $29.0 million, $16.4 million and $33.3 million, respectively, was amortized and reflected as reductions of net sales in the condensed consolidated statements of operations. The total carrying value of BIPs exclude other upfront incentives made in conjunction with long-term customer commitments of $76.9 million and $79.8 million at June 30, 2021 and December 31, 2020, respectively, which will be repaid in future periods. See Note 16 for disaggregated net sales by end-market. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS During the three and six months ended June 30, 2021, we acquired a producer of wire enamels used in a range of consumer electronics, electric vehicle and industrial applications, based in China. The acquisition was accounted for as a business combination within our industrial end-market and Performance Coatings segment. The overall impacts to our condensed consolidated financial statements were not considered material as of and for the three and six months ended June 30, 2021. As of June 30, 2021, we have not yet finalized the purchase accounting related to the acquisition and the amounts recorded represent preliminary values. We expect to finalize our purchase accounting during the measurement period which will be no later than one year following the acquisition date. Goodwill The following table shows changes in the carrying amount of goodwill from December 31, 2020 to June 30, 2021 by reportable segment: Performance Mobility Total Balance at December 31, 2020 $ 1,211.3 $ 83.6 $ 1,294.9 Goodwill from acquisitions 23.1 — 23.1 Foreign currency translation (22.1) (1.6) (23.7) Balance at June 30, 2021 $ 1,212.3 $ 82.0 $ 1,294.3 Identifiable Intangible Assets The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: June 30, 2021 Gross Carrying Accumulated Net Book Weighted average Technology $ 561.5 $ (404.3) $ 157.2 10.4 Trademarks—indefinite-lived 276.8 — 276.8 Indefinite Trademarks—definite-lived 103.1 (40.3) 62.8 15.8 Customer relationships 949.2 (352.0) 597.2 19.0 Other 15.0 (12.4) 2.6 5.0 Total $ 1,905.6 $ (809.0) $ 1,096.6 December 31, 2020 Gross Carrying Accumulated Net Book Weighted average Technology $ 564.8 $ (383.6) $ 181.2 10.4 Trademarks—indefinite-lived 282.9 — 282.9 Indefinite Trademarks—definite-lived 103.6 (37.5) 66.1 16.0 Customer relationships 943.6 (329.3) 614.3 19.0 Other 15.3 (11.0) 4.3 5.0 Total $ 1,910.2 $ (761.4) $ 1,148.8 The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2021 and each of the succeeding five years is: Remainder of 2021 $ 58.5 2022 114.6 2023 73.7 2024 68.7 2025 68.0 2026 67.5 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In accordance with the applicable guidance for ASC 712, Nonretirement Postemployment Benefits , we accounted for contractual termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated. During the three and six months ended June 30, 2021 and 2020, we incurred costs for termination benefits of $22.5 million, $27.0 million, $13.7 million and $32.2 million, respectively. Pretax charges during the three and six months ended June 30, 2021 primarily relate to additional employee severance charges within Europe that were excluded from the previously announced global restructuring during July 2020 as we resolved the open aspects related to works council consultations and local legal requirements during the quarter . The majority of our termination benefits are recorded within other operating (benefits) charges in the condensed consolidated statements of operations. The remaining payments associated with these actions are expected to be substantially completed within 24 months. The following table summarizes the activity related to termination benefit reserves and expenses from December 31, 2020 to June 30, 2021: 2021 Activity Balance at December 31, 2020 $ 55.8 Expenses, net of changes to estimates 27.0 Payments made (24.7) Foreign currency translation (1.2) Balance at June 30, 2021 $ 56.9 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES 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 June 30, 2021 and December 31, 2020, we had outstanding bank guarantees of $6.6 million and $8.5 million, respectively. A portion of our bank guarantees expire between 2021 and 2026, while others do not have specified expiration dates. We monitor the customer obligations and bank guarantees to evaluate whether we have a liability at the balance sheet date. During the six months ended June 30, 2020, we incurred a $1.0 million charge related to our outstanding bank guarantees. We did not have any liabilities related to our outstanding bank guarantees recorded at June 30, 2021 and December 31, 2020. Operational Matter In January 2021, we became aware of an operational matter affecting certain North America Mobility Coatings customer manufacturing sites. The matter involves the use and application of certain of our products in combination with and incorporated within third party products. The matter occurred over a discrete period during the fourth quarter of 2020. When we filed, and as disclosed in, our Annual Report on Form 10-K for the year ended December 31, 2020, we estimated that it was reasonably possible that losses associated with the matter could have been up to $250 million. Subsequent to the filing of our Annual Report on Form 10-K and through the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, there were further developments which led us to conclude that losses from this matter were probable and, therefore, recorded a charge of $94.4 million for such probable estimated losses during the three months ended March 31, 2021. We also disclosed that, at the time, based on the information then currently available surrounding the full scope and associated responsibilities among relevant parties, we believed that it was reasonably possible that we could incur losses, in addition to the recorded probable losses, of up to $65 million. Given further developments during the three months ended June 30, 2021, we have reduced our previously recorded estimated charge by $71.8 million which has resulted in a benefit for the three months ended June 30, 2021. This reflects an estimated $29.4 million for insurance receivables recorded within Accounts and notes receivable, net in the condensed consolidated balance sheets at June 30, 2021, as we have obtained confirmation from our insurance carriers that the relevant policies provide coverage for certain losses arising under this matter. The updated amount of the charge also reflects a net decrease of approximately $42.4 million, as we have learned more about the matter, including actual costs to repair the impacted products and the number of impacted products. Liabilities of $50.1 million are recorded as Other accrued liabilities in the condensed consolidated balance sheets at June 30, 2021 and we do not believe at this time that there are any incremental reasonably possible losses. The recorded probable losses remain an estimate and actual costs arising from this matter could be materially lower or higher depending on the actual costs incurred to repair the impacted products as well as the availability of additional insurance coverage. Other We are subject to various pending lawsuits, legal proceedings and other claims in the ordinary course of business, including civil, regulatory and environmental matters. These matters may involve third-party indemnification obligations and/or insurance covering all or part of any potential damage incurred by us. All of these matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the proceedings and other claims at this time. The potential effects, if any, on our consolidated financial statements will be recorded in the period in which these matters are probable and estimable. Except as set forth in the "Operational Matter" section above, we believe that any sum we may be required to pay in connection with proceedings or claims in excess of the amounts recorded would likely not have a material adverse effect upon our results of operations, financial conditions or cash flows on a consolidated annual basis but could have a material adverse impact in a particular quarterly reporting period. We are involved in environmental remediation and ongoing compliance activities at several sites. The timing and duration of remediation and ongoing compliance activities are determined on a site by site basis depending on local regulations. The liabilities recorded represent our estimable future remediation costs and other anticipated environmental liabilities. We have not recorded liabilities at sites where a liability is probable, but that a range of loss is not reasonably estimable. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis but could have a material adverse impact in a particular quarterly reporting period. |
Long-term Employee Benefits
Long-term Employee Benefits | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Long-term Employee Benefits | LONG-TERM EMPLOYEE BENEFITS Components of Net Periodic Benefit Cost The following table sets forth the components of net periodic benefit costs for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 2.0 $ 1.9 $ 3.8 $ 3.7 Interest cost 1.9 2.3 3.9 4.6 Expected return on plan assets (3.5) (3.1) (6.9) (6.3) Amortization of actuarial loss, net 1.3 0.8 2.5 1.8 Plan curtailments — (0.6) — (1.8) Net periodic benefit cost $ 1.7 $ 1.3 $ 3.3 $ 2.0 All non-service components of net periodic benefit cost are recorded in other income, net within the accompanying condensed consolidated statements of operations. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION During the three and six months ended June 30, 2021 and 2020, we recognized expenses of $4.2 million, $7.8 million, $6.1 million and $11.2 million, respectively, in stock-based compensation, which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized tax benefits on stock-based compensation of $0.9 million, $1.2 million, $1.3 million, and $1.5 million for the three and six months ended June 30, 2021 and 2020, respectively. 2021 Activity A summary of award activity by type for the six months ended June 30, 2021 is presented below. Stock Options Awards Weighted- Aggregate Weighted Outstanding at January 1, 2021 2.5 $ 27.34 Granted — $ — Exercised (0.5) $ 28.26 Forfeited / Expired (0.4) $ 32.00 Outstanding at June 30, 2021 1.6 $ 25.77 Vested and expected to vest at June 30, 2021 1.6 $ 25.77 $ 7.8 5.27 Exercisable at June 30, 2021 1.4 $ 25.64 $ 7.2 4.98 Cash received by the Company upon exercise of options for the six months ended June 30, 2021 was $14.1 million. Tax shortfall expenses on these exercises were $0.5 million. At June 30, 2021, there was $0.3 million of unrecognized expense relating to unvested stock options that is expected to be amortized over the weighted average period of 0.7 year. Restricted Stock Awards and Restricted Stock Units (1) Awards/Units Weighted-Average Outstanding at January 1, 2021 1.0 $ 28.84 Granted 0.6 $ 28.75 Vested (0.4) $ 29.06 Forfeited (0.1) $ 29.05 Outstanding at June 30, 2021 1.1 $ 28.69 (1) As of June 30, 2021, there are no restricted stock awards outstanding and only restricted stock units remain. Tax shortfall expenses on the vesting of restricted stock awards and restricted stock units during the six months ended June 30, 2021 was $0.1 million. At June 30, 2021, there was $19.1 million of unamortized expense relating to unvested restricted stock units that is expected to be amortized over a weighted average period of 1.7 years. Performance Stock Awards and Performance Share Units (1) Awards/Units Weighted-Average Outstanding at January 1, 2021 0.5 $ 31.07 Granted 0.4 $ 29.53 Vested — $ — Forfeited (0.2) $ 31.85 Outstanding at June 30, 2021 0.7 $ 30.11 (1) As of June 30, 2021, there are no performance stock awards outstanding and only performance share units remain . Our performance stock awards and performance share units allow for participants to vest in more or less than the targeted number of shares granted. All of our performance awards are currently performing below the applicable targets. We currently expect a total of 0.5 million shares with a weighted average fair value per share of $29.89 to vest at the respective vesting dates for such awards. At June 30, 2021, there is $12.4 million of unamortized expense relating to unvested performance share units that is expected to be amortized over a weighted average period of 2.4 years. The forfeitures include performance stock awards and performance share units that vested below threshold payout. |
Other Income, Net
Other Income, Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | OTHER INCOME, NET Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign exchange losses (gains), net $ 1.8 $ (0.3) $ 3.6 $ 2.0 Debt extinguishment and refinancing related costs 0.2 — 0.2 2.4 Other miscellaneous income, net (1) (10.1) (1.9) (12.3) (5.8) Total $ (8.1) $ (2.2) $ (8.5) $ (1.4) (1) Activity during the three and six months ended June 30, 2021 includes income of $8.3 million related to a law change with respect to certain Brazilian indirect taxes. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rates for the six months ended June 30, 2021 and 2020 are as follows: Six Months Ended June 30, 2021 2020 Effective Tax Rate 23.0 % 56.4 % The Company's effective tax rate for the periods reflected in the condensed consolidated financial statements are not directly comparable primarily due to the intra-entity asset transfers of certain of its intellectual property and the impacts of certain ongoing tax audits, which occurred during the six months ended June 30, 2020 and are discussed below. On January 1, 2020, we completed an intra-entity transfer of certain intellectual property rights (the “IP”) to our Swiss subsidiary, where our EMEA regional headquarters is located. The transfer of the IP did not result in a taxable gain; however, it did result in step-up of the Swiss tax-deductible basis in the transferred assets and, accordingly, created a temporary difference between the book basis and the tax basis of the IP, which was transferred at fair value. We applied significant judgment when determining the fair value of the IP, which serves as the tax basis of the deferred tax asset. Consequently, this transaction resulted in the recognition of a deferred tax asset at the applicable Swiss tax rate, resulting in a one-time tax benefit of $50.5 million during the six months ended June 30, 2020. The Company expects to be able to realize the deferred tax assets resulting from these intra-entity asset transfers. In connection with the income tax audit in Germany for the tax period 2010-2013, the Germany Tax Authority (“GTA”) indicated that it believed that certain positions taken on the 2010-2013 corporate income tax returns were not in compliance with German tax law. While the Company disagrees with the conclusions of the GTA based on the technical merits of our positions, after extensive discussions with the GTA and to avoid a potentially long and costly litigation process, in March 2020 the Company expressed a willingness to settle with the GTA on certain matters. The Company has reached a formal agreement with the GTA and is expecting to settle the final assessment in the coming months. The Company recorded a charge to income tax expense of $14.3 million during the six months ended June 30, 2020. The Company is also currently under audit in Germany for tax years 2014-2017 and is prepared to vigorously defend itself on these matters. The Company anticipates that it is reasonably possible it will settle up to $11.9 million, exclusive of interest and penalties, of its current unrecognized tax benefits within 2021 due to the conclusion of the 2010-2013 German income tax audit. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) 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 (loss) 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 (loss) per common share is as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2021 2020 2021 2020 Net income (loss) to common shareholders $ 126.4 $ (82.8) $ 141.6 $ (30.6) Basic weighted average shares outstanding 232.5 235.2 233.2 235.1 Diluted weighted average shares outstanding 233.5 235.2 234.1 235.1 Net income (loss) per common share: Basic net income (loss) per share $ 0.54 $ (0.35) $ 0.61 $ (0.13) Diluted net income (loss) per share $ 0.54 $ (0.35) $ 0.60 $ (0.13) The number of anti-dilutive shares that have been excluded in the computation of diluted net income per share for the three and six months ended June 30, 2021 and 2020 were 0.6 million, 1.1 million, 4.6 million and 4.5 million, respectively. |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, Net | ACCOUNTS AND NOTES RECEIVABLE, NET Trade accounts receivable are stated at the amount we expect to collect. We maintain allowances for doubtful accounts for estimated losses by applying historical loss percentages, combined with reasonable and supportable forecasts of future losses, to respective aging categories. Management considers the following factors in developing its current estimate of expected credit losses: customer credit-worthiness, past transaction history with the customer, current economic industry trends, changes in market or regulatory matters, and changes in customer payment terms, including the ongoing impacts from COVID-19. June 30, 2021 December 31, 2020 Accounts receivable - trade, net (1) $ 864.4 $ 738.3 Notes receivable 26.4 30.3 Other (2) 144.9 101.2 Total $ 1,035.7 $ 869.8 (1) Allowance for doubtful accounts was $25.5 million and $26.5 million at June 30, 2021 and December 31, 2020, respectively. (2) Includes $29.4 million at June 30, 2021 of insurance recoveries related to the operational matter as discussed further in Note 5 at June 30, 2021. Bad debt expense of $0.2 million, $0.9 million, $7.0 million and $10.4 million was included within selling, general and administrative expenses for the three and six months ended June 30, 2021 and 2020, respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES June 30, 2021 December 31, 2020 Finished products $ 324.1 $ 319.3 Semi-finished products 106.2 92.2 Raw materials 161.0 127.2 Stores and supplies 23.2 21.2 Total $ 614.5 $ 559.9 Inventory reserves were $16.3 million and $17.0 million at June 30, 2021 and December 31, 2020, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET June 30, 2021 December 31, 2020 Property, plant and equipment $ 2,350.3 $ 2,317.9 Accumulated depreciation (1,167.0) (1,123.4) Property, plant, and equipment, net $ 1,183.3 $ 1,194.5 Depreciation expense amounted to $32.9 million, $64.8 million, $31.7 million and $73.3 million for the three and six months ended June 30, 2021 and 2020, respectively. During May 2021, approximately $55.0 million of capitalized project costs related to an enterprise resource planning system previously classified as construction in progress were placed in service and depreciation was initiated. The majority of the costs will be depreciated over a 15 year useful life. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Borrowings are summarized as follows: June 30, 2021 December 31, 2020 2024 Dollar Term Loans $ 2,051.0 $ 2,063.2 2025 Euro Senior Notes 535.8 552.1 2027 Dollar Senior Notes 500.0 500.0 2029 Dollar Senior Notes 700.0 700.0 Short-term and other borrowings 103.0 118.0 Unamortized original issue discount (5.5) (6.3) Unamortized deferred financing costs (30.4) (34.3) Total borrowings, net 3,853.9 3,892.7 Less: Short-term borrowings 16.2 29.9 Current portion of long-term borrowings 24.3 24.3 Long-term debt $ 3,813.4 $ 3,838.5 Revolving Credit Facility During May 2021, we entered into the Tenth Amendment to the Credit Agreement (the "Tenth Amendment"), to among other things, increase commitments available pursuant to the Revolving Credit Facility from $400.0 million to $550.0 million and extend the maturity of the Revolving Credit Facility from 2024 to 2026, provided that such date will be accelerated in certain circumstances as set forth in the Tenth Amendment. As a result, we recorded $1.4 million of incremental deferred financing costs. At June 30, 2021 and December 31, 2020, letters of credit issued under the Revolving Credit Facility totaled $34.0 million which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $516.0 million and $366.0 million at June 30, 2021 and December 31, 2020, respectively. Future repayments Below is a schedule of required future repayments of all borrowings outstanding at June 30, 2021. Remainder of 2021 $ 26.1 2022 54.4 2023 27.3 2024 1,993.3 2025 539.1 Thereafter 1,249.6 Total borrowings 3,889.8 Unamortized original issue discount (5.5) Unamortized deferred financing costs (30.4) Total borrowings, net $ 3,853.9 |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments, Hedging Activities and Fair Value Measurements | FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS Fair value of financial instruments Equity securities with readily determinable fair values - Balances of equity securities are recorded within other assets, with any changes in fair value recorded within other income, net. The fair values of equity securities are based upon quoted market prices, which are considered Level 1 inputs. Long-term borrowings - The estimated fair values of these borrowings are based on recent trades, as reported by a third-party pricing service. Due to the infrequency of trades, these inputs are considered to be Level 2 inputs. Derivative instruments - The Company’s interest rate caps, interest rate swaps, cross-currency swaps, and foreign currency forward contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are included in the Level 2 hierarchy. Fair value of contingent consideration The fair value of contingent consideration associated with an acquisition completed in the current year is valued at each balance sheet date, until amounts become payable, with adjustments recorded within other operating (benefits) charges in the condensed consolidated statements of operations. During the six months ended June 30, 2021, in conjunction with the acquisition described in Note 3, we recorded fair value of contingent consideration of $7.3 million. The contingent consideration was valued using a probability-weighted expected payment method. The analysis considered the timing of expected future cash flows and the probability of key elements of the approval process are completed. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy. The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Prepaid expenses and other current assets: Cross-currency swaps (2) $ — $ 17.1 $ — $ 17.1 $ — $ 16.7 $ — $ 16.7 Other assets: Investments in equity securities 0.7 — — 0.7 0.8 — — 0.8 Liabilities: Other accrued liabilities: Interest rate caps (1) — 1.0 — 1.0 — 2.0 — 2.0 Interest rate swaps (1) — 29.2 — 29.2 — 28.9 — 28.9 Contingent consideration — — 4.4 4.4 — — — — Other liabilities: Interest rate swaps (1) — 16.0 — 16.0 — 31.1 — 31.1 Cross-currency swaps (2) — 31.9 — 31.9 — 52.0 — 52.0 Contingent consideration — — 2.9 2.9 — — — — Long-term borrowings: 2024 Dollar Term Loans — 2,045.0 — 2,045.0 — 2,043.0 — 2,043.0 2025 Euro Senior Notes — 546.2 — 546.2 — 564.3 — 564.3 2027 Dollar Senior Notes — 524.6 — 524.6 — 533.1 — 533.1 2029 Dollar Senior Notes — 685.0 — 685.0 — 704.6 — 704.6 (1) Cash flow hedge (2) Net investment hedge The table below presents a roll forward of activity for the Level 3 liabilities for the three and six months ended June 30, 2021. Fair Value Using Significant Unobservable Inputs Beginning balance January 1, 2021 $ — Activity — Ending balance at March 31, 2021 — Business acquisition 7.3 Ending balance at June 30, 2021 $ 7.3 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. The following table presents the fair values of derivative instruments that qualify and have been designated as cash flow and net investment hedges included in accumulated other comprehensive loss ("AOCI"): June 30, 2021 December 31, 2020 AOCI: Interest rate caps (cash flow hedges) $ 1.4 $ 2.6 Interest rate swaps (cash flow hedges) 45.2 60.0 Foreign currency forward contracts (cash flow hedges) 0.2 0.3 Cross-currency swaps (net investment hedges) 14.8 35.2 Total AOCI $ 61.6 $ 98.1 Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The following tables set forth the locations and amounts recognized during the three and six months ended June 30, 2021 and 2020 for these cash flow and net investment hedges. For the Three Months Ended June 30, 2021 2020 Derivatives in Cash Flow and Net Investment Hedges Location of Loss (Gain) Recognized in Income on Derivatives Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Interest rate caps Interest expense, net $ — $ 0.6 $ — $ 0.6 Interest rate swaps Interest expense, net 0.9 7.2 6.1 2.9 Foreign currency forward contracts (1) Cost of goods sold 0.1 0.1 — — Cross-currency swaps Interest expense, net (0.3) (4.7) 3.1 (3.7) (1) Activity during the three months ended June 30, 2020 rounds to zero For the Six Months Ended June 30, 2021 2020 Derivatives in Cash Flow and Net Investment Hedges Location of Loss (Gain) Recognized in Income on Derivatives Net Amount of (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Interest rate caps Interest expense, net $ — $ 1.2 $ 1.1 $ 0.9 Interest rate swaps Interest expense, net (0.6) 14.2 47.6 4.5 Foreign currency forward contracts (1) Cost of goods sold — 0.1 — — Cross-currency swaps Interest expense, net (29.9) (9.5) (19.4) (7.4) (1) Activity during the six months ended June 30, 2020 rounds to zero Over the next 12 months, we expect losses of $30.7 million pertaining to cash flow hedges to be reclassified from AOCI into earnings, related to our interest rate caps, interest rate swaps, and foreign currency forward contracts. 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, net in the condensed consolidated statements of operations. Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows: Derivatives Not Designated as Hedging Location of Gain (Loss) Recognized in Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign currency forward contracts Other income, net $ 0.9 $ 0.8 $ (5.9) $ (0.9) |
Segments
Segments | 6 Months Ended |
Jun. 30, 2021 | |
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 Mobility Coatings. Previously named Transportation Coatings, our Mobility Coatings segment was renamed during the six months ended June 30, 2021 with no changes to the underlying business or segment structure. 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 Mobility 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. Adjusted EBIT is the primary measure to evaluate financial performance of the operating segments and allocate resources. Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. The following table presents relevant information of our reportable segments. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net sales (1) : Refinish $ 463.1 $ 261.9 $ 862.1 $ 629.7 Industrial 342.7 220.2 651.0 500.1 Total Net sales Performance Coatings 805.8 482.1 1,513.1 1,129.8 Light Vehicle 243.9 126.3 522.8 386.4 Commercial Vehicle 77.1 44.3 154.5 120.0 Total Net sales Mobility Coatings 321.0 170.6 677.3 506.4 Total Net sales $ 1,126.8 $ 652.7 $ 2,190.4 $ 1,636.2 (1) The Company has no intercompany sales between segments. The following table reconciles our segment operating performance to income before income taxes for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Segment Adjusted EBIT (1) : Performance Coatings $ 139.7 $ 1.5 $ 256.9 $ 80.9 Mobility Coatings 5.7 (39.3) 44.9 (13.5) Total (2) 145.4 (37.8) 301.8 67.4 Interest expense, net 33.4 36.1 66.9 72.6 Debt extinguishment and refinancing related costs (a) 0.2 — 0.2 2.4 Termination benefits and other employee related costs (b) 22.7 15.2 25.5 34.7 Strategic review and retention costs (c) 2.2 6.7 7.6 18.2 Offering and transactional costs (d) 1.4 0.1 1.6 0.2 Impairment charges (e) — 2.7 — 3.2 Pension special events (f) — (0.6) — (1.8) Accelerated depreciation (g) 0.6 0.4 1.2 8.5 Indemnity income (h) (0.1) — (0.1) — Operational matter (i) (71.8) — 22.6 — Brazil indirect tax (j) (8.3) — (8.3) — Income (loss) before income taxes $ 165.1 $ (98.4) $ 184.6 $ (70.6) (1) The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, 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 EBIT 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 Adjusted EBIT adjusted for the select items referred to above. (2) Does not represent Axalta’s Adjusted EBIT referenced elsewhere by the Company as there are additional adjustments that are not allocated to the segments. (a) Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. (b) Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are primarily associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance. (c) Represents costs for legal, tax and other advisory fees pertaining to our review of strategic alternatives that was concluded in March 2020, as well as retention awards for certain employees which will be earned over a period of 18-24 months, ending September 2021. These amounts are not considered indicative of our ongoing performance. (d) Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance. (e) Represents impairment charges, which are not considered indicative of our ongoing performance. (f) Represents certain defined benefit pension costs associated with special events, including pension curtailments, settlements and special termination benefits, which we do not consider indicative of our ongoing operating performance. (g) Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance. (h) Represents indemnity income associated with acquisitions, which we do not consider indicative of our ongoing operating performance. (i) Represents expenses, changes in estimates and insurance recoveries for probable liabilities related to an operational matter in the Mobility Coatings segment discussed further in Note 5, which is not indicative of our ongoing operating performance. (j) Represents non-recurring income related to a law change with respect to certain Brazilian indirect taxes which was recorded within other income, net. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Unrealized Pension Unrealized Accumulated Balance at December 31, 2020 $ (282.0) $ (88.7) $ (54.1) $ (424.8) Current year deferrals to AOCI (37.4) — 1.3 (36.1) Reclassifications from AOCI to Net income — 0.7 6.6 7.3 Net Change (37.4) 0.7 7.9 (28.8) Balance at March 31, 2021 (319.4) (88.0) (46.2) (453.6) Current year deferrals to AOCI 38.7 — (0.8) 37.9 Reclassifications from AOCI to Net income — 1.0 6.7 7.7 Net Change 38.7 1.0 5.9 45.6 Balance at June 30, 2021 $ (280.7) $ (87.0) $ (40.3) $ (408.0) The cumulative income tax benefit related to the adjustments for pension benefits at June 30, 2021 was $32.7 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at June 30, 2021 was $6.5 million. Unrealized Pension Unrealized Accumulated Balance at December 31, 2019 $ (297.0) $ (69.9) $ (28.6) $ (395.5) Current year deferrals to AOCI (83.3) — (36.3) (119.6) Reclassifications from AOCI to Net loss — (0.4) 1.6 1.2 Net Change (83.3) (0.4) (34.7) (118.4) Balance at March 31, 2020 (380.3) (70.3) (63.3) (513.9) Current year deferrals to AOCI 6.1 — (5.2) 0.9 Reclassifications from AOCI to Net loss — 0.4 3.0 3.4 Net Change 6.1 0.4 (2.2) 4.3 Balance at June 30, 2020 $ (374.2) $ (69.9) $ (65.5) $ (509.6) Included within the reclassification from AOCI to Net Income for the three and six months ended June 30, 2020 were curtailment gains of $0.6 million and $1.8 million, respectively. The cumulative income tax benefit related to the adjustments for pension benefits at June 30, 2020 was $27.0 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at June 30, 2020 was $10.7 million. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Acquisition As disclosed in our Current Report on Form 8-K filed on July 7, 2021, on July 6, 2021, we entered into definitive agreements, whereby we agreed to acquire one hundred percent (100%) of the share capital of U-POL Holdings Limited (“U-POL”), a leading manufacturer of repair and refinish products used primarily for automotive refinish and aftermarket protective applications, for £428 million in cash, subject to limited adjustments as described in the agreement. Closing of the acquisition is subject to satisfaction of certain regulatory requirements and other customary closing conditions. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In March 2020, we adopted ASU 2020-04, "Reference Rate Reform" which provides optional expedients exercisable through December 31, 2022 to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which clarified the scope and application of the original guidance. As of June 30, 2021, the expedients provided in this standard do not impact the Company. We will continue to monitor for potential impacts on our financial statements. In December 2020, we adopted ASU 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and updating provisions related to accounting for franchise (or similar) tax partially based on income and interim recognition of enactment of tax law changes. The adoption of this standard did not have a material impact on our financial statements. |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2020 to June 30, 2021 by reportable segment: Performance Mobility Total Balance at December 31, 2020 $ 1,211.3 $ 83.6 $ 1,294.9 Goodwill from acquisitions 23.1 — 23.1 Foreign currency translation (22.1) (1.6) (23.7) Balance at June 30, 2021 $ 1,212.3 $ 82.0 $ 1,294.3 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class | The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: June 30, 2021 Gross Carrying Accumulated Net Book Weighted average Technology $ 561.5 $ (404.3) $ 157.2 10.4 Trademarks—indefinite-lived 276.8 — 276.8 Indefinite Trademarks—definite-lived 103.1 (40.3) 62.8 15.8 Customer relationships 949.2 (352.0) 597.2 19.0 Other 15.0 (12.4) 2.6 5.0 Total $ 1,905.6 $ (809.0) $ 1,096.6 December 31, 2020 Gross Carrying Accumulated Net Book Weighted average Technology $ 564.8 $ (383.6) $ 181.2 10.4 Trademarks—indefinite-lived 282.9 — 282.9 Indefinite Trademarks—definite-lived 103.6 (37.5) 66.1 16.0 Customer relationships 943.6 (329.3) 614.3 19.0 Other 15.3 (11.0) 4.3 5.0 Total $ 1,910.2 $ (761.4) $ 1,148.8 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2021 and each of the succeeding five years is: Remainder of 2021 $ 58.5 2022 114.6 2023 73.7 2024 68.7 2025 68.0 2026 67.5 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity related to termination benefit reserves and expenses from December 31, 2020 to June 30, 2021: 2021 Activity Balance at December 31, 2020 $ 55.8 Expenses, net of changes to estimates 27.0 Payments made (24.7) Foreign currency translation (1.2) Balance at June 30, 2021 $ 56.9 |
Long-term Employee Benefits (Ta
Long-term Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic benefit costs for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 2.0 $ 1.9 $ 3.8 $ 3.7 Interest cost 1.9 2.3 3.9 4.6 Expected return on plan assets (3.5) (3.1) (6.9) (6.3) Amortization of actuarial loss, net 1.3 0.8 2.5 1.8 Plan curtailments — (0.6) — (1.8) Net periodic benefit cost $ 1.7 $ 1.3 $ 3.3 $ 2.0 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Options Roll Forward | A summary of award activity by type for the six months ended June 30, 2021 is presented below. Stock Options Awards Weighted- Aggregate Weighted Outstanding at January 1, 2021 2.5 $ 27.34 Granted — $ — Exercised (0.5) $ 28.26 Forfeited / Expired (0.4) $ 32.00 Outstanding at June 30, 2021 1.6 $ 25.77 Vested and expected to vest at June 30, 2021 1.6 $ 25.77 $ 7.8 5.27 Exercisable at June 30, 2021 1.4 $ 25.64 $ 7.2 4.98 |
Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward | Restricted Stock Awards and Restricted Stock Units (1) Awards/Units Weighted-Average Outstanding at January 1, 2021 1.0 $ 28.84 Granted 0.6 $ 28.75 Vested (0.4) $ 29.06 Forfeited (0.1) $ 29.05 Outstanding at June 30, 2021 1.1 $ 28.69 (1) As of June 30, 2021, there are no restricted stock awards outstanding and only restricted stock units remain. |
Schedule of Performance Stock Roll Forward | Performance Stock Awards and Performance Share Units (1) Awards/Units Weighted-Average Outstanding at January 1, 2021 0.5 $ 31.07 Granted 0.4 $ 29.53 Vested — $ — Forfeited (0.2) $ 31.85 Outstanding at June 30, 2021 0.7 $ 30.11 (1) As of June 30, 2021, there are no performance stock awards outstanding and only performance share units remain . |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign exchange losses (gains), net $ 1.8 $ (0.3) $ 3.6 $ 2.0 Debt extinguishment and refinancing related costs 0.2 — 0.2 2.4 Other miscellaneous income, net (1) (10.1) (1.9) (12.3) (5.8) Total $ (8.1) $ (2.2) $ (8.5) $ (1.4) (1) Activity during the three and six months ended June 30, 2021 includes income of $8.3 million related to a law change with respect to certain Brazilian indirect taxes. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rates for the six months ended June 30, 2021 and 2020 are as follows: Six Months Ended June 30, 2021 2020 Effective Tax Rate 23.0 % 56.4 % |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of our basic and diluted net income (loss) per common share is as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2021 2020 2021 2020 Net income (loss) to common shareholders $ 126.4 $ (82.8) $ 141.6 $ (30.6) Basic weighted average shares outstanding 232.5 235.2 233.2 235.1 Diluted weighted average shares outstanding 233.5 235.2 234.1 235.1 Net income (loss) per common share: Basic net income (loss) per share $ 0.54 $ (0.35) $ 0.61 $ (0.13) Diluted net income (loss) per share $ 0.54 $ (0.35) $ 0.60 $ (0.13) |
Accounts and Notes Receivable_2
Accounts and Notes Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | June 30, 2021 December 31, 2020 Accounts receivable - trade, net (1) $ 864.4 $ 738.3 Notes receivable 26.4 30.3 Other (2) 144.9 101.2 Total $ 1,035.7 $ 869.8 (1) Allowance for doubtful accounts was $25.5 million and $26.5 million at June 30, 2021 and December 31, 2020, respectively. (2) Includes $29.4 million at June 30, 2021 of insurance recoveries related to the operational matter as discussed further in Note 5 at June 30, 2021. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | June 30, 2021 December 31, 2020 Finished products $ 324.1 $ 319.3 Semi-finished products 106.2 92.2 Raw materials 161.0 127.2 Stores and supplies 23.2 21.2 Total $ 614.5 $ 559.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | June 30, 2021 December 31, 2020 Property, plant and equipment $ 2,350.3 $ 2,317.9 Accumulated depreciation (1,167.0) (1,123.4) Property, plant, and equipment, net $ 1,183.3 $ 1,194.5 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Borrowings are summarized as follows: June 30, 2021 December 31, 2020 2024 Dollar Term Loans $ 2,051.0 $ 2,063.2 2025 Euro Senior Notes 535.8 552.1 2027 Dollar Senior Notes 500.0 500.0 2029 Dollar Senior Notes 700.0 700.0 Short-term and other borrowings 103.0 118.0 Unamortized original issue discount (5.5) (6.3) Unamortized deferred financing costs (30.4) (34.3) Total borrowings, net 3,853.9 3,892.7 Less: Short-term borrowings 16.2 29.9 Current portion of long-term borrowings 24.3 24.3 Long-term debt $ 3,813.4 $ 3,838.5 |
Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at June 30, 2021. Remainder of 2021 $ 26.1 2022 54.4 2023 27.3 2024 1,993.3 2025 539.1 Thereafter 1,249.6 Total borrowings 3,889.8 Unamortized original issue discount (5.5) Unamortized deferred financing costs (30.4) Total borrowings, net $ 3,853.9 |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Prepaid expenses and other current assets: Cross-currency swaps (2) $ — $ 17.1 $ — $ 17.1 $ — $ 16.7 $ — $ 16.7 Other assets: Investments in equity securities 0.7 — — 0.7 0.8 — — 0.8 Liabilities: Other accrued liabilities: Interest rate caps (1) — 1.0 — 1.0 — 2.0 — 2.0 Interest rate swaps (1) — 29.2 — 29.2 — 28.9 — 28.9 Contingent consideration — — 4.4 4.4 — — — — Other liabilities: Interest rate swaps (1) — 16.0 — 16.0 — 31.1 — 31.1 Cross-currency swaps (2) — 31.9 — 31.9 — 52.0 — 52.0 Contingent consideration — — 2.9 2.9 — — — — Long-term borrowings: 2024 Dollar Term Loans — 2,045.0 — 2,045.0 — 2,043.0 — 2,043.0 2025 Euro Senior Notes — 546.2 — 546.2 — 564.3 — 564.3 2027 Dollar Senior Notes — 524.6 — 524.6 — 533.1 — 533.1 2029 Dollar Senior Notes — 685.0 — 685.0 — 704.6 — 704.6 (1) Cash flow hedge (2) Net investment hedge |
Schedule of Fair Value, Liability Activity | The table below presents a roll forward of activity for the Level 3 liabilities for the three and six months ended June 30, 2021. Fair Value Using Significant Unobservable Inputs Beginning balance January 1, 2021 $ — Activity — Ending balance at March 31, 2021 — Business acquisition 7.3 Ending balance at June 30, 2021 $ 7.3 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair values of derivative instruments that qualify and have been designated as cash flow and net investment hedges included in accumulated other comprehensive loss ("AOCI"): June 30, 2021 December 31, 2020 AOCI: Interest rate caps (cash flow hedges) $ 1.4 $ 2.6 Interest rate swaps (cash flow hedges) 45.2 60.0 Foreign currency forward contracts (cash flow hedges) 0.2 0.3 Cross-currency swaps (net investment hedges) 14.8 35.2 Total AOCI $ 61.6 $ 98.1 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables set forth the locations and amounts recognized during the three and six months ended June 30, 2021 and 2020 for these cash flow and net investment hedges. For the Three Months Ended June 30, 2021 2020 Derivatives in Cash Flow and Net Investment Hedges Location of Loss (Gain) Recognized in Income on Derivatives Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Interest rate caps Interest expense, net $ — $ 0.6 $ — $ 0.6 Interest rate swaps Interest expense, net 0.9 7.2 6.1 2.9 Foreign currency forward contracts (1) Cost of goods sold 0.1 0.1 — — Cross-currency swaps Interest expense, net (0.3) (4.7) 3.1 (3.7) (1) Activity during the three months ended June 30, 2020 rounds to zero For the Six Months Ended June 30, 2021 2020 Derivatives in Cash Flow and Net Investment Hedges Location of Loss (Gain) Recognized in Income on Derivatives Net Amount of (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Interest rate caps Interest expense, net $ — $ 1.2 $ 1.1 $ 0.9 Interest rate swaps Interest expense, net (0.6) 14.2 47.6 4.5 Foreign currency forward contracts (1) Cost of goods sold — 0.1 — — Cross-currency swaps Interest expense, net (29.9) (9.5) (19.4) (7.4) (1) Activity during the six months ended June 30, 2020 rounds to zero |
Derivatives Not Designated as Hedging Instruments | Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows: Derivatives Not Designated as Hedging Location of Gain (Loss) Recognized in Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign currency forward contracts Other income, net $ 0.9 $ 0.8 $ (5.9) $ (0.9) |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents relevant information of our reportable segments. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net sales (1) : Refinish $ 463.1 $ 261.9 $ 862.1 $ 629.7 Industrial 342.7 220.2 651.0 500.1 Total Net sales Performance Coatings 805.8 482.1 1,513.1 1,129.8 Light Vehicle 243.9 126.3 522.8 386.4 Commercial Vehicle 77.1 44.3 154.5 120.0 Total Net sales Mobility Coatings 321.0 170.6 677.3 506.4 Total Net sales $ 1,126.8 $ 652.7 $ 2,190.4 $ 1,636.2 (1) The Company has no intercompany sales between segments. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles our segment operating performance to income before income taxes for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Segment Adjusted EBIT (1) : Performance Coatings $ 139.7 $ 1.5 $ 256.9 $ 80.9 Mobility Coatings 5.7 (39.3) 44.9 (13.5) Total (2) 145.4 (37.8) 301.8 67.4 Interest expense, net 33.4 36.1 66.9 72.6 Debt extinguishment and refinancing related costs (a) 0.2 — 0.2 2.4 Termination benefits and other employee related costs (b) 22.7 15.2 25.5 34.7 Strategic review and retention costs (c) 2.2 6.7 7.6 18.2 Offering and transactional costs (d) 1.4 0.1 1.6 0.2 Impairment charges (e) — 2.7 — 3.2 Pension special events (f) — (0.6) — (1.8) Accelerated depreciation (g) 0.6 0.4 1.2 8.5 Indemnity income (h) (0.1) — (0.1) — Operational matter (i) (71.8) — 22.6 — Brazil indirect tax (j) (8.3) — (8.3) — Income (loss) before income taxes $ 165.1 $ (98.4) $ 184.6 $ (70.6) (1) The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, 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 EBIT 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 Adjusted EBIT adjusted for the select items referred to above. (2) Does not represent Axalta’s Adjusted EBIT referenced elsewhere by the Company as there are additional adjustments that are not allocated to the segments. (a) Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. (b) Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are primarily associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance. (c) Represents costs for legal, tax and other advisory fees pertaining to our review of strategic alternatives that was concluded in March 2020, as well as retention awards for certain employees which will be earned over a period of 18-24 months, ending September 2021. These amounts are not considered indicative of our ongoing performance. (d) Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance. (e) Represents impairment charges, which are not considered indicative of our ongoing performance. (f) Represents certain defined benefit pension costs associated with special events, including pension curtailments, settlements and special termination benefits, which we do not consider indicative of our ongoing operating performance. (g) Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance. (h) Represents indemnity income associated with acquisitions, which we do not consider indicative of our ongoing operating performance. (i) Represents expenses, changes in estimates and insurance recoveries for probable liabilities related to an operational matter in the Mobility Coatings segment discussed further in Note 5, which is not indicative of our ongoing operating performance. (j) Represents non-recurring income related to a law change with respect to certain Brazilian indirect taxes which was recorded within other income, net. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Unrealized Pension Unrealized Accumulated Balance at December 31, 2020 $ (282.0) $ (88.7) $ (54.1) $ (424.8) Current year deferrals to AOCI (37.4) — 1.3 (36.1) Reclassifications from AOCI to Net income — 0.7 6.6 7.3 Net Change (37.4) 0.7 7.9 (28.8) Balance at March 31, 2021 (319.4) (88.0) (46.2) (453.6) Current year deferrals to AOCI 38.7 — (0.8) 37.9 Reclassifications from AOCI to Net income — 1.0 6.7 7.7 Net Change 38.7 1.0 5.9 45.6 Balance at June 30, 2021 $ (280.7) $ (87.0) $ (40.3) $ (408.0) Unrealized Pension Unrealized Accumulated Balance at December 31, 2019 $ (297.0) $ (69.9) $ (28.6) $ (395.5) Current year deferrals to AOCI (83.3) — (36.3) (119.6) Reclassifications from AOCI to Net loss — (0.4) 1.6 1.2 Net Change (83.3) (0.4) (34.7) (118.4) Balance at March 31, 2020 (380.3) (70.3) (63.3) (513.9) Current year deferrals to AOCI 6.1 — (5.2) 0.9 Reclassifications from AOCI to Net loss — 0.4 3.0 3.4 Net Change 6.1 0.4 (2.2) 4.3 Balance at June 30, 2020 $ (374.2) $ (69.9) $ (65.5) $ (509.6) |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract with customer, asset | $ 39.7 | $ 39.7 | $ 37.2 | ||
Capitalized contract cost, net | 156.1 | 156.1 | 165.4 | ||
Capitalized contract cost, amortization | 13.7 | $ 16.4 | 29 | $ 33.3 | |
Upfront Incentive Payments | $ 76.9 | $ 76.9 | $ 79.8 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,294.9 |
Goodwill from acquisitions | 23.1 |
Foreign currency translation | (23.7) |
Goodwill, ending balance | 1,294.3 |
Performance Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,211.3 |
Goodwill from acquisitions | 23.1 |
Foreign currency translation | (22.1) |
Goodwill, ending balance | 1,212.3 |
Mobility Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 83.6 |
Goodwill from acquisitions | 0 |
Foreign currency translation | (1.6) |
Goodwill, ending balance | $ 82 |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 1,905.6 | $ 1,910.2 | |
Accumulated Amortization | (809) | (761.4) | |
Net Book Value, definite-lived | 1,096.6 | 1,148.8 | |
Trademarks | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Net Book Value, indefinite-lived | 276.8 | 282.9 | |
Technology | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | 561.5 | 564.8 | |
Accumulated Amortization | (404.3) | (383.6) | |
Net Book Value, definite-lived | $ 157.2 | 181.2 | |
Weighted average amortization periods (years) | 10 years 4 months 24 days | 10 years 4 months 24 days | |
Trademarks | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 103.1 | 103.6 | |
Accumulated Amortization | (40.3) | (37.5) | |
Net Book Value, definite-lived | $ 62.8 | 66.1 | |
Weighted average amortization periods (years) | 15 years 9 months 18 days | 16 years | |
Customer relationships | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 949.2 | 943.6 | |
Accumulated Amortization | (352) | (329.3) | |
Net Book Value, definite-lived | $ 597.2 | 614.3 | |
Weighted average amortization periods (years) | 19 years | 19 years | |
Other | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 15 | 15.3 | |
Accumulated Amortization | (12.4) | (11) | |
Net Book Value, definite-lived | $ 2.6 | $ 4.3 | |
Weighted average amortization periods (years) | 5 years | 5 years |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions | Jun. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 58.5 |
2022 | 114.6 |
2023 | 73.7 |
2024 | 68.7 |
2025 | 68 |
2026 | $ 67.5 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | $ 22.5 | $ 13.7 | $ 27 | $ 32.2 |
Payment term (in months) | 24 months |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 55.8 | |||
Expenses, net of changes to estimates | $ 22.5 | $ 13.7 | 27 | $ 32.2 |
Payments made | (24.7) | |||
Foreign currency translation | (1.2) | |||
Ending balance | $ 56.9 | $ 56.9 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Maximum exposure | $ 6,600,000 | $ 6,600,000 | $ 8,500,000 | |||
Outstanding bank guarantees incurred | $ 1,000,000 | |||||
Current carrying value | 0 | 0 | 0 | |||
Unresolved matter, potential loss | 0 | $ 65,000,000 | 0 | $ 250,000,000 | ||
Recorded charge in probable loss | (71,800,000) | $ 94,400,000 | $ 0 | 22,600,000 | $ 0 | |
Insurance receivable | 29,400,000 | 29,400,000 | ||||
Decrease in loss contingency | 42,400,000 | |||||
Loss recorded as a liability | $ 50,100,000 | $ 50,100,000 |
Long-term Employee Benefits - S
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 2 | $ 1.9 | $ 3.8 | $ 3.7 |
Interest cost | 1.9 | 2.3 | 3.9 | 4.6 |
Expected return on plan assets | (3.5) | (3.1) | (6.9) | (6.3) |
Amortization of actuarial loss, net | 1.3 | 0.8 | 2.5 | 1.8 |
Plan curtailments | 0 | (0.6) | 0 | (1.8) |
Net periodic benefit cost | $ 1.7 | $ 1.3 | $ 3.3 | $ 2 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 4.2 | $ 6.1 | $ 7.8 | $ 11.2 | |
Stock based compensation tax benefit | 0.9 | $ 1.3 | 1.2 | $ 1.5 | |
Excess tax benefit | 0.5 | ||||
Unrecognized compensation cost | $ 0.3 | 0.3 | |||
Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from stock options exercised | $ 14.1 | ||||
Period for recognition of compensation not yet recognized | 8 months 12 days | ||||
Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock or performance stock awards outstanding (in shares) | 0 | 0 | |||
Restricted Stock and Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period for recognition of compensation not yet recognized | 1 year 8 months 12 days | ||||
Restricted stock or performance stock awards outstanding (in shares) | 1,100,000 | 1,100,000 | 1,000,000 | ||
Tax benefit realized on the vesting of restricted stock | $ 0.1 | ||||
Compensation not yet recognized, share-based awards other than options | $ 19.1 | $ 19.1 | |||
Performance Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock or performance stock awards outstanding (in shares) | 0 | 0 | |||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period for recognition of compensation not yet recognized | 2 years 4 months 24 days | ||||
Restricted stock or performance stock awards outstanding (in shares) | 700,000 | 700,000 | 500,000 | ||
Compensation not yet recognized, share-based awards other than options | $ 12.4 | $ 12.4 | |||
Performance stock awards expected to vest (in shares) | 500,000 | 500,000 | |||
Weighted average fair value per share of performance stock awards expected to vest (in usd per share) | $ 29.89 | $ 29.89 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2021 | |
Awards (in millions) | |
Beginning Balance (in shares) | 2.5 |
Granted (in shares) | 0 |
Exercised (in shares) | (0.5) |
Forfeited/Expired (in shares) | (0.4) |
Ending Balance (in shares) | 1.6 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ 27.34 |
Granted (in usd per share) | 0 |
Exercised (in usd per share) | 28.26 |
Forfeited/Expired (in usd per share) | 32 |
Ending Balance (in usd per share) | $ 25.77 |
Vested and Expected to Vest | |
Vested and expected to vest, awards (in shares) | 1.6 |
Vested and expected to vest, weighted average exercise price (in usd per share) | $ 25.77 |
Vested and expected to vest, aggregate intrinsic value | $ 7.8 |
Vested and expected to vest, weighted average contractual life (in years) | 5 years 3 months 7 days |
Exercisable | |
Exercisable, awards (in shares) | 1.4 |
Exercisable, weighted average exercise price (in usd per share) | $ 25.64 |
Exercisable, aggregate intrinsic value | $ 7.2 |
Exercisable, weighted average contractual life (in years) | 4 years 11 months 23 days |
Stock-based Compensation - Sc_2
Stock-based Compensation - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock and Restricted Stock Units shares in Millions | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Awards/Units (millions) | |
Beginning Balance (in shares) | shares | 1 |
Granted (in shares) | shares | 0.6 |
Vested (in shares) | shares | (0.4) |
Forfeited (in shares) | shares | (0.1) |
Ending Balance (in shares) | shares | 1.1 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 28.84 |
Granted (in usd per share) | $ / shares | 28.75 |
Vested (in usd per share) | $ / shares | 29.06 |
Forfeited (in usd per share) | $ / shares | 29.05 |
Ending Balance (in usd per share) | $ / shares | $ 28.69 |
Stock-based Compensation - Sc_3
Stock-based Compensation - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares shares in Millions | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Awards/Units (millions) | |
Beginning Balance (in shares) | shares | 0.5 |
Granted (in shares) | shares | 0.4 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (0.2) |
Ending Balance (in shares) | shares | 0.7 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 31.07 |
Granted (in usd per share) | $ / shares | 29.53 |
Vested (in usd per share) | $ / shares | 0 |
Forfeited (in usd per share) | $ / shares | 31.85 |
Ending Balance (in usd per share) | $ / shares | $ 30.11 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Other Non-operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange losses (gains), net | $ 1.8 | $ (0.3) | $ 3.6 | $ 2 |
Debt extinguishment and refinancing related costs | 0.2 | 0 | 0.2 | 2.4 |
Other miscellaneous income, net | (10.1) | (1.9) | (12.3) | (5.8) |
Total | (8.1) | (2.2) | (8.5) | (1.4) |
Brazil indirect tax | $ 8.3 | $ 0 | $ 8.3 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective Tax Rate | 23.00% | 56.40% | ||
Tax Benefit on step-up value | $ 50.5 | |||
income tax settlement [Line Items] | ||||
Income Tax settlement | $ 38.7 | $ (15.2) | $ 42.5 | (39.8) |
Settlement with Taxing Authority | ||||
income tax settlement [Line Items] | ||||
Income Tax settlement | $ 14.3 | |||
Amount reasonable possible to settle of unrecognized tax benefits | $ 11.9 | $ 11.9 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) to common shareholders | $ 126.4 | $ (82.8) | $ 141.6 | $ (30.6) |
Basic weighted average shares outstanding (in shares) | 232.5 | 235.2 | 233.2 | 235.1 |
Diluted weighted average shares outstanding (in shares) | 233.5 | 235.2 | 234.1 | 235.1 |
Net income (loss) per common share: | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.54 | $ (0.35) | $ 0.61 | $ (0.13) |
Diluted net income (loss) per share (in dollars per share) | $ 0.54 | $ (0.35) | $ 0.60 | $ (0.13) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.6 | 4.6 | 1.1 | 4.5 |
Accounts and Notes Receivable_3
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivable - trade, net | $ 864.4 | $ 738.3 |
Notes receivable | 26.4 | 30.3 |
Other (2) | 144.9 | 101.2 |
Total | 1,035.7 | 869.8 |
Allowance for doubtful accounts | 25.5 | $ 26.5 |
Insurance receivable | $ 29.4 |
Accounts and Notes Receivable_4
Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Receivables [Abstract] | ||||
Bad debt expense net of recoveries | $ 0.2 | $ 7 | $ 0.9 | $ 10.4 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 324.1 | $ 319.3 |
Semi-finished products | 106.2 | 92.2 |
Raw materials | 161 | 127.2 |
Stores and supplies | 23.2 | 21.2 |
Total Inventories | $ 614.5 | $ 559.9 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory reserves | $ 16.3 | $ 17 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 2,350.3 | $ 2,317.9 |
Accumulated depreciation | (1,167) | (1,123.4) |
Property, plant, and equipment, net | $ 1,183.3 | $ 1,194.5 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 32.9 | $ 31.7 | $ 64.8 | $ 73.3 | |
Capitalized cost | $ 55 | ||||
Software and Software Development Costs | |||||
Property, Plant and Equipment [Line Items] | |||||
Enterprise resource planning system | 15 years |
Borrowings - Schedule of Debt (
Borrowings - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Short-term and other borrowings | $ 103 | $ 118 |
Unamortized original issue discount | (5.5) | (6.3) |
Unamortized deferred financing costs | (30.4) | (34.3) |
Total borrowings, net | 3,853.9 | 3,892.7 |
Short-term borrowings | 16.2 | 29.9 |
Current portion of long-term borrowings | 24.3 | 24.3 |
Long-term debt | 3,813.4 | 3,838.5 |
2024 Dollar Term Loans | ||
Debt Instrument [Line Items] | ||
Term loan | 2,051 | 2,063.2 |
2025 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 535.8 | 552.1 |
2027 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 500 | 500 |
2029 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 700 | $ 700 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - Revolving Credit Facility - USD ($) $ in Millions | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Increase in revolving credit facility | $ 550 | $ 400 | ||
Incremental deferred financing costs | $ 1.4 | |||
Letters of credit outstanding, amount | $ 34 | $ 34 | ||
Line of credit facility, remaining borrowing capacity | $ 516 | $ 366 |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Remainder of 2021 | $ 26.1 | |
2022 | 54.4 | |
2023 | 27.3 | |
2024 | 1,993.3 | |
2025 | 539.1 | |
Thereafter | 1,249.6 | |
Total borrowings | 3,889.8 | |
Unamortized original issue discount | (5.5) | $ (6.3) |
Unamortized deferred financing costs | (30.4) | (34.3) |
Total borrowings, net | $ 3,853.9 | $ 3,892.7 |
Financial Instruments, Hedgin_3
Financial Instruments, Hedging Activities and Fair Value Measurements - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | $ 0.7 | $ 0.8 |
Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, current | 4.4 | 0 |
Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, noncurrent | 2.9 | 0 |
Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 2,045 | 2,043 |
Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 546.2 | 564.3 |
Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 524.6 | 533.1 |
Long-term borrowings | 2029 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 685 | 704.6 |
Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 17.1 | 16.7 |
Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 31.9 | 52 |
Interest rate caps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 1 | 2 |
Interest rate swaps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 29.2 | 28.9 |
Interest rate swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 16 | 31.1 |
Fair Value, Inputs, Level 1 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0.7 | 0.8 |
Fair Value, Inputs, Level 1 | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, current | 0 | 0 |
Fair Value, Inputs, Level 1 | Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, noncurrent | 0 | 0 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2029 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 1 | Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate caps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate swaps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 2 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0 | 0 |
Fair Value, Inputs, Level 2 | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, current | 0 | 0 |
Fair Value, Inputs, Level 2 | Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, noncurrent | 0 | 0 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 2,045 | 2,043 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 546.2 | 564.3 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 524.6 | 533.1 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2029 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 685 | 704.6 |
Fair Value, Inputs, Level 2 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 17.1 | 16.7 |
Fair Value, Inputs, Level 2 | Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 31.9 | 52 |
Fair Value, Inputs, Level 2 | Interest rate caps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 1 | 2 |
Fair Value, Inputs, Level 2 | Interest rate swaps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 29.2 | 28.9 |
Fair Value, Inputs, Level 2 | Interest rate swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 16 | 31.1 |
Fair Value, Inputs, Level 3 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, current | 4.4 | 0 |
Fair Value, Inputs, Level 3 | Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, noncurrent | 2.9 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2029 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 3 | Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate caps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate swaps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 0 | $ 0 |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements - Schedule of Liability Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0 | $ 0 |
Activity | 0 | |
Business acquisition | 7.3 | |
Ending balance | $ 7.3 | $ 0 |
Financial Instruments, Hedgin_5
Financial Instruments, Hedging Activities and Fair Value Measurements - Accumulated Other Comprehensive (Loss) Income (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | $ 61.6 | $ 98.1 |
Cash flow hedging | Interest rate caps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 1.4 | 2.6 |
Cash flow hedging | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 45.2 | 60 |
Cash flow hedging | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 0.2 | 0.3 |
Net investment hedging | Cross-currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | $ 14.8 | $ 35.2 |
Financial Instruments, Hedgin_6
Financial Instruments, Hedging Activities and Fair Value Measurements - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value of contingent consideration | $ 7.3 |
Cash flow hedge loss to be reclassified within twelve months | $ 30.7 |
Financial Instruments, Hedgin_7
Financial Instruments, Hedging Activities and Fair Value Measurements - Derivative Locations and Amounts Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of (Gain) Recognized in OCI on Derivatives | $ 6.9 | $ (2.6) | $ 16.1 | $ (43.3) |
Interest rate caps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of (Gain) Recognized in OCI on Derivatives | 0 | 0 | 0 | 1.1 |
Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of (Gain) Recognized in OCI on Derivatives | 0.9 | 6.1 | (0.6) | 47.6 |
Foreign currency forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of (Gain) Recognized in OCI on Derivatives | 0.1 | 0 | 0 | 0 |
Cross-currency swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of (Gain) Recognized in OCI on Derivatives, Cross-currency swaps | (0.3) | 3.1 | (29.9) | (19.4) |
Interest expense | Interest rate caps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of Loss (Gain) Recognized in Income | 0.6 | 0.6 | 1.2 | 0.9 |
Interest expense | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of Loss (Gain) Recognized in Income | 7.2 | 2.9 | 14.2 | 4.5 |
Interest expense | Foreign currency forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0.9 | 0.8 | (5.9) | (0.9) |
Interest expense | Cross-currency swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of Loss (Gain) Recognized in Income, Cross-currency swaps | (4.7) | (3.7) | (9.5) | (7.4) |
Cost of goods sold | Foreign currency forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of Loss (Gain) Recognized in Income | $ 0.1 | $ 0 | $ 0.1 | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,126.8 | $ 652.7 | $ 2,190.4 | $ 1,636.2 |
Intercompany sales between segments | 0 | 0 | 0 | 0 |
Performance Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 805.8 | 482.1 | 1,513.1 | 1,129.8 |
Mobility Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 321 | 170.6 | 677.3 | 506.4 |
Refinish | Performance Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 463.1 | 261.9 | 862.1 | 629.7 |
Industrial | Performance Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 342.7 | 220.2 | 651 | 500.1 |
Light Vehicle | Mobility Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 243.9 | 126.3 | 522.8 | 386.4 |
Commercial Vehicle | Mobility Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 77.1 | $ 44.3 | $ 154.5 | $ 120 |
Segments - Reconciliation of Op
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Adjusted EBIT | $ 145.4 | $ (37.8) | $ 301.8 | $ 67.4 | |
Interest expense, net | 33.4 | 36.1 | 66.9 | 72.6 | |
Debt extinguishment and refinancing related costs | 0.2 | 0 | 0.2 | 2.4 | |
Termination benefits and other employee related costs | 22.7 | 15.2 | 25.5 | 34.7 | |
Strategic review and retention costs | 2.2 | 6.7 | 7.6 | 18.2 | |
Offering and transactional costs | 1.4 | 0.1 | 1.6 | 0.2 | |
Impairment charges | 0 | 2.7 | 0 | 3.2 | |
Pension special events | 0 | (0.6) | 0 | (1.8) | |
Accelerated depreciation | 0.6 | 0.4 | 1.2 | 8.5 | |
Indemnity income | (0.1) | 0 | (0.1) | 0 | |
Operational matter | (71.8) | $ 94.4 | 0 | 22.6 | 0 |
Brazil indirect tax | (8.3) | 0 | (8.3) | 0 | |
Income (loss) before income taxes | 165.1 | (98.4) | 184.6 | (70.6) | |
Performance Coatings | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Adjusted EBIT | 139.7 | 1.5 | 256.9 | 80.9 | |
Mobility Coatings | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Adjusted EBIT | $ 5.7 | $ (39.3) | $ 44.9 | $ (13.5) | |
Minimum | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Retention payment terms | 18 months | ||||
Maximum | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Retention payment terms | 24 months |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | $ (424.8) | |||
AOCI, ending balance | $ (408) | |||
Unrealized Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (319.4) | (282) | $ (380.3) | $ (297) |
Current year deferrals to AOCI | 38.7 | (37.4) | 6.1 | (83.3) |
Reclassifications from AOCI to Net income | 0 | 0 | 0 | 0 |
Net Change | 38.7 | (37.4) | 6.1 | (83.3) |
AOCI, ending balance | (280.7) | (319.4) | (374.2) | (380.3) |
Pension Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (88) | (88.7) | (70.3) | (69.9) |
Current year deferrals to AOCI | 0 | 0 | 0 | 0 |
Reclassifications from AOCI to Net income | 1 | 0.7 | 0.4 | (0.4) |
Net Change | 1 | 0.7 | 0.4 | (0.4) |
AOCI, ending balance | (87) | (88) | (69.9) | (70.3) |
Unrealized (Loss) Gain on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (46.2) | (54.1) | (63.3) | (28.6) |
Current year deferrals to AOCI | (0.8) | 1.3 | (5.2) | (36.3) |
Reclassifications from AOCI to Net income | 6.7 | 6.6 | 3 | 1.6 |
Net Change | 5.9 | 7.9 | (2.2) | (34.7) |
AOCI, ending balance | (40.3) | (46.2) | (65.5) | (63.3) |
Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (453.6) | (424.8) | (513.9) | (395.5) |
Current year deferrals to AOCI | 37.9 | (36.1) | 0.9 | (119.6) |
Reclassifications from AOCI to Net income | 7.7 | 7.3 | 3.4 | 1.2 |
Net Change | 45.6 | (28.8) | 4.3 | (118.4) |
AOCI, ending balance | $ (408) | $ (453.6) | $ (509.6) | $ (513.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | |
Equity [Abstract] | |||
Cumulative income tax benefit on pension and postretirement benefit plans | $ 27 | $ 27 | $ 32.7 |
Cumulative income tax benefit on derivatives | 10.7 | 10.7 | $ 6.5 |
Curtailment gain | $ 0.6 | $ 1.8 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - U-POL £ in Millions | Jul. 06, 2021GBP (£) |
Subsequent Event [Line Items] | |
Percentage of business acquired | 100.00% |
Consideration transferred | £ 428 |
Uncategorized Items - axta-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |