☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Bermuda | 2851 | 98-1073028 | ||||||||||||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) |
Common Shares, $1.00 par value | AXTA | New York Stock Exchange | ||||||||||||
(Title of class) | (Trading symbol) | (Exchange on which registered) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 1,126.8 | $ | 652.7 | $ | 2,190.4 | $ | 1,636.2 | Net sales | $ | 1,088.6 | $ | 1,026.9 | $ | 3,279.0 | $ | 2,663.1 | ||||||||||||||||||||||||||||||||||
Cost of goods sold | Cost of goods sold | 752.8 | 499.2 | 1,437.3 | 1,146.0 | Cost of goods sold | 745.3 | 634.1 | 2,182.6 | 1,780.1 | ||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | 184.2 | 154.2 | 363.3 | 349.6 | Selling, general and administrative expenses | 181.0 | 166.5 | 544.3 | 516.1 | ||||||||||||||||||||||||||||||||||||||||||
Other operating (benefits) charges | Other operating (benefits) charges | (45.7) | 24.7 | 57.1 | 56.3 | Other operating (benefits) charges | (7.6) | 42.6 | 49.5 | 98.9 | ||||||||||||||||||||||||||||||||||||||||||
Research and development expenses | Research and development expenses | 15.8 | 11.2 | 31.4 | 27.8 | Research and development expenses | 15.4 | 13.4 | 46.8 | 41.2 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | Amortization of acquired intangibles | 29.3 | 27.9 | 58.3 | 55.9 | Amortization of acquired intangibles | 29.8 | 28.6 | 88.1 | 84.5 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | 190.4 | (64.5) | 243.0 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | Income from operations | 124.7 | 141.7 | 367.7 | 142.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | 33.4 | 36.1 | 66.9 | 72.6 | Interest expense, net | 33.8 | 39.8 | 100.7 | 112.4 | ||||||||||||||||||||||||||||||||||||||||||
Other income, net | (8.1) | (2.2) | (8.5) | (1.4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 165.1 | (98.4) | 184.6 | (70.6) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | Other (income) expense, net | (2.4) | 2.3 | (10.9) | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 93.3 | 99.6 | 277.9 | 29.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | Provision (benefit) for income taxes | 38.7 | (15.2) | 42.5 | (39.8) | Provision (benefit) for income taxes | 24.4 | 17.1 | 66.9 | (22.7) | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 126.4 | (83.2) | 142.1 | (30.8) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 68.9 | 82.5 | 211.0 | 51.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Net (loss) income attributable to noncontrolling interests | Less: Net (loss) income attributable to noncontrolling interests | 0 | (0.4) | 0.5 | (0.2) | Less: Net (loss) income attributable to noncontrolling interests | (0.2) | — | 0.3 | (0.2) | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to controlling interests | $ | 126.4 | $ | (82.8) | $ | 141.6 | $ | (30.6) | ||||||||||||||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to controlling interests | Net income attributable to controlling interests | $ | 69.1 | $ | 82.5 | $ | 210.7 | $ | 51.9 | |||||||||||||||||||||||||||||||||||||||||||
Basic net income per share | Basic net income per share | $ | 0.30 | $ | 0.35 | $ | 0.91 | $ | 0.22 | |||||||||||||||||||||||||||||||||||||||||||
Diluted net income per share | Diluted net income per share | $ | 0.30 | $ | 0.35 | $ | 0.90 | $ | 0.22 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net income (loss) | $ | 126.4 | $ | (83.2) | $ | 142.1 | $ | (30.8) | ||||||||||||||||||
Other comprehensive income (loss), before tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | 39.3 | 7.0 | 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) | ||||||||||||||||||||||
Comprehensive income (loss) | 172.6 | (78.0) | 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 | $ | 172.0 | $ | (78.5) | $ | 158.4 | $ | (144.7) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net income | $ | 68.9 | $ | 82.5 | $ | 211.0 | $ | 51.7 | ||||||||||||||||||
Other comprehensive (loss) income, before tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | (37.9) | 33.4 | (36.2) | (46.1) | ||||||||||||||||||||||
Unrealized gain (loss) on derivatives | 7.4 | 7.0 | 23.5 | (36.3) | ||||||||||||||||||||||
Unrealized gain (loss) on pension and other benefit plan obligations | 1.2 | (0.5) | 3.7 | (0.5) | ||||||||||||||||||||||
Other comprehensive (loss) income, before tax | (29.3) | 39.9 | (9.0) | (82.9) | ||||||||||||||||||||||
Income tax provision (benefit) related to items of other comprehensive (loss) income | 1.5 | 1.0 | 4.6 | (5.4) | ||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (30.8) | 38.9 | (13.6) | (77.5) | ||||||||||||||||||||||
Comprehensive income (loss) | 38.1 | 121.4 | 197.4 | (25.8) | ||||||||||||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interests | (0.7) | (0.5) | 0.2 | (3.0) | ||||||||||||||||||||||
Comprehensive income (loss) attributable to controlling interests | $ | 38.8 | $ | 121.9 | $ | 197.2 | $ | (22.8) |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Current assets: | Current assets: | Current assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 1,230.9 | $ | 1,360.9 | Cash and cash equivalents | $ | 627.7 | $ | 1,360.9 | ||||||||||||||||||
Restricted cash | Restricted cash | 10.6 | 3.1 | Restricted cash | 10.4 | 3.1 | ||||||||||||||||||||||
Accounts and notes receivable, net | Accounts and notes receivable, net | 1,035.7 | 869.8 | Accounts and notes receivable, net | 1,050.1 | 869.8 | ||||||||||||||||||||||
Inventories | Inventories | 614.5 | 559.9 | Inventories | 677.9 | 559.9 | ||||||||||||||||||||||
Prepaid expenses and other current assets | Prepaid expenses and other current assets | 156.5 | 132.2 | Prepaid expenses and other current assets | 147.7 | 132.2 | ||||||||||||||||||||||
Total current assets | Total current assets | 3,048.2 | 2,925.9 | Total current assets | 2,513.8 | 2,925.9 | ||||||||||||||||||||||
Property, plant and equipment, net | Property, plant and equipment, net | 1,183.3 | 1,194.5 | Property, plant and equipment, net | 1,193.5 | 1,194.5 | ||||||||||||||||||||||
Goodwill | Goodwill | 1,294.3 | 1,294.9 | Goodwill | 1,619.8 | 1,294.9 | ||||||||||||||||||||||
Identifiable intangibles, net | Identifiable intangibles, net | 1,096.6 | 1,148.8 | Identifiable intangibles, net | 1,323.0 | 1,148.8 | ||||||||||||||||||||||
Other assets | Other assets | 587.0 | 593.1 | Other assets | 582.9 | 593.1 | ||||||||||||||||||||||
Total assets | Total assets | $ | 7,209.4 | $ | 7,157.2 | Total assets | $ | 7,233.0 | $ | 7,157.2 | ||||||||||||||||||
Liabilities, Shareholders’ Equity | Liabilities, Shareholders’ Equity | Liabilities, Shareholders’ Equity | ||||||||||||||||||||||||||
Current liabilities: | Current liabilities: | Current liabilities: | ||||||||||||||||||||||||||
Accounts payable | Accounts payable | $ | 597.5 | $ | 564.4 | Accounts payable | $ | 622.5 | $ | 564.4 | ||||||||||||||||||
Current portion of borrowings | Current portion of borrowings | 40.5 | 54.2 | Current portion of borrowings | 43.3 | 54.2 | ||||||||||||||||||||||
Other accrued liabilities | Other accrued liabilities | 578.2 | 562.3 | Other accrued liabilities | 610.8 | 562.3 | ||||||||||||||||||||||
Total current liabilities | Total current liabilities | 1,216.2 | 1,180.9 | Total current liabilities | 1,276.6 | 1,180.9 | ||||||||||||||||||||||
Long-term borrowings | Long-term borrowings | 3,813.4 | 3,838.5 | Long-term borrowings | 3,799.2 | 3,838.5 | ||||||||||||||||||||||
Accrued pensions | Accrued pensions | 296.0 | 309.9 | Accrued pensions | 288.0 | 309.9 | ||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | 116.6 | 114.0 | Deferred income taxes | 177.9 | 114.0 | ||||||||||||||||||||||
Other liabilities | Other liabilities | 231.9 | 234.1 | Other liabilities | 204.2 | 234.1 | ||||||||||||||||||||||
Total liabilities | Total liabilities | 5,674.1 | 5,677.4 | Total liabilities | 5,745.9 | 5,677.4 | ||||||||||||||||||||||
Commitments and contingent liabilities (Note 5) | 0 | 0 | ||||||||||||||||||||||||||
Commitments and contingent liabilities (Note 6) | Commitments and contingent liabilities (Note 6) | 0 | 0 | |||||||||||||||||||||||||
Shareholders’ equity: | Shareholders’ equity: | 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 | ||||||||||||||||||||||||||
Common shares, $1.00 par, 1,000.0 shares authorized, 251.7 and 250.9 shares issued at September 30, 2021 and December 31, 2020, respectively | Common shares, $1.00 par, 1,000.0 shares authorized, 251.7 and 250.9 shares issued at September 30, 2021 and December 31, 2020, respectively | 251.7 | 250.9 | |||||||||||||||||||||||||
Capital in excess of par | Capital in excess of par | 1,506.9 | 1,487.1 | Capital in excess of par | 1,510.7 | 1,487.1 | ||||||||||||||||||||||
Retained earnings | Retained earnings | 704.9 | 563.3 | Retained earnings | 774.0 | 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) | ||||||||||||||||||||||||||
Treasury shares, at cost, 23.4 and 16.1 shares at September 30, 2021 and December 31, 2020, respectively | Treasury shares, at cost, 23.4 and 16.1 shares at September 30, 2021 and December 31, 2020, respectively | (657.3) | (443.5) | |||||||||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (408.0) | (424.8) | Accumulated other comprehensive loss | (438.3) | (424.8) | ||||||||||||||||||||||
Total Axalta shareholders’ equity | Total Axalta shareholders’ equity | 1,488.3 | 1,433.0 | Total Axalta shareholders’ equity | 1,440.8 | 1,433.0 | ||||||||||||||||||||||
Noncontrolling interests | Noncontrolling interests | 47.0 | 46.8 | Noncontrolling interests | 46.3 | 46.8 | ||||||||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 1,535.3 | 1,479.8 | Total shareholders’ equity | 1,487.1 | 1,479.8 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | Total liabilities and shareholders’ equity | $ | 7,209.4 | $ | 7,157.2 | Total liabilities and shareholders’ equity | $ | 7,233.0 | $ | 7,157.2 |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par/Stated Value | Capital In Excess Of Par | Retained Earnings | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests | Total | Number of Shares | Par/Stated Value | Capital In Excess Of Par | Retained Earnings | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | Balance at December 31, 2020 | 234.8 | $ | 250.9 | $ | 1,487.1 | $ | 563.3 | $ | (443.5) | $ | (424.8) | $ | 46.8 | $ | 1,479.8 | Balance at December 31, 2020 | 234.8 | $ | 250.9 | $ | 1,487.1 | $ | 563.3 | $ | (443.5) | $ | (424.8) | $ | 46.8 | $ | 1,479.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss: | Comprehensive loss: | Comprehensive loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 15.2 | — | — | 0.5 | 15.7 | Net income | — | — | — | 15.2 | — | — | 0.5 | 15.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on derivatives, net of tax of $1.3 million | Net realized and unrealized gain on derivatives, net of tax of $1.3 million | — | — | — | — | — | 7.9 | — | 7.9 | Net realized and unrealized gain on derivatives, net of tax of $1.3 million | — | — | — | — | — | 7.9 | — | 7.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax $0.5 million | Long-term employee benefit plans, net of tax $0.5 million | — | — | — | — | — | 0.7 | — | 0.7 | Long-term employee benefit plans, net of tax $0.5 million | — | — | — | — | — | 0.7 | — | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $0.0 million | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | (37.4) | (0.2) | (37.6) | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | (37.4) | (0.2) | (37.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive loss | Total comprehensive loss | — | — | — | 15.2 | — | (28.8) | 0.3 | (13.3) | Total comprehensive loss | — | — | — | 15.2 | — | (28.8) | 0.3 | (13.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | Recognition of stock-based compensation | — | — | 3.6 | — | — | — | — | 3.6 | Recognition of stock-based compensation | — | — | 3.6 | — | — | — | — | 3.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | Shares issued under compensation plans | 0.3 | 0.3 | (0.2) | — | — | — | — | 0.1 | Shares issued under compensation plans | 0.3 | 0.3 | (0.2) | — | — | — | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock purchases | Common stock purchases | (2.3) | — | — | — | (63.7) | — | — | (63.7) | Common stock purchases | (2.3) | — | — | — | (63.7) | — | — | (63.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to noncontrolling interests | Dividends declared to noncontrolling interests | — | — | — | — | — | — | (0.7) | (0.7) | Dividends declared to noncontrolling interests | — | — | — | — | — | — | (0.7) | (0.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | Balance at March 31, 2021 | 232.8 | 251.2 | 1,490.5 | 578.5 | (507.2) | (453.6) | 46.4 | 1,405.8 | Balance at March 31, 2021 | 232.8 | 251.2 | 1,490.5 | 578.5 | (507.2) | (453.6) | 46.4 | 1,405.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | Comprehensive income: | Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 126.4 | — | — | 0 | 126.4 | Net income | — | — | — | 126.4 | — | — | — | 126.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on derivatives, net of tax of $1.0 million | Net realized and unrealized gain on derivatives, net of tax of $1.0 million | — | — | — | — | — | 5.9 | — | 5.9 | Net realized and unrealized gain on derivatives, net of tax of $1.0 million | — | — | — | — | — | 5.9 | — | 5.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax of $0.3 million | Long-term employee benefit plans, net of tax of $0.3 million | — | — | — | — | — | 1.0 | — | 1.0 | Long-term employee benefit plans, net of tax of $0.3 million | — | — | — | — | — | 1.0 | — | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $0.0 million | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | 38.7 | 0.6 | 39.3 | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | 38.7 | 0.6 | 39.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | Total comprehensive income | — | — | — | 126.4 | — | 45.6 | 0.6 | 172.6 | Total comprehensive income | — | — | — | 126.4 | — | 45.6 | 0.6 | 172.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | Recognition of stock-based compensation | — | — | 4.2 | — | — | — | — | 4.2 | Recognition of stock-based compensation | — | — | 4.2 | — | — | — | — | 4.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | Shares issued under compensation plans | 0.5 | 0.5 | 12.2 | — | — | — | — | 12.7 | Shares issued under compensation plans | 0.5 | 0.5 | 12.2 | — | — | — | — | 12.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock purchases | Common stock purchases | (1.9) | — | — | — | (60.0) | — | — | (60.0) | Common stock purchases | (1.9) | — | — | — | (60.0) | — | — | (60.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | Balance at June 30, 2021 | 231.4 | $ | 251.7 | $ | 1,506.9 | $ | 704.9 | $ | (567.2) | $ | (408.0) | $ | 47.0 | $ | 1,535.3 | Balance at June 30, 2021 | 231.4 | 251.7 | 1,506.9 | 704.9 | (567.2) | (408.0) | 47.0 | 1,535.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 69.1 | — | — | (0.2) | 68.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on derivatives, net of tax of $1.1 million | Net realized and unrealized gain on derivatives, net of tax of $1.1 million | — | — | — | — | — | 6.3 | — | 6.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax of $0.4 million | Long-term employee benefit plans, net of tax of $0.4 million | — | — | — | — | — | 0.8 | — | 0.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $0.0 million | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | (37.4) | (0.5) | (37.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | Total comprehensive income (loss) | — | — | — | 69.1 | — | (30.3) | (0.7) | 38.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | Recognition of stock-based compensation | — | — | 3.9 | — | — | — | — | 3.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | Shares issued under compensation plans | — | — | (0.1) | — | — | — | — | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock purchases | Common stock purchases | (3.1) | — | — | — | (90.1) | — | — | (90.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | Balance at September 30, 2021 | 228.3 | $ | 251.7 | $ | 1,510.7 | $ | 774.0 | $ | (657.3) | $ | (438.3) | $ | 46.3 | $ | 1,487.1 |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par/Stated Value | Capital In Excess Of Par | Retained Earnings | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests | Total | Number of Shares | Par/Stated Value | Capital In Excess Of Par | Retained Earnings | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | Balance at December 31, 2019 | 234.9 | $ | 249.9 | $ | 1,474.1 | $ | 443.2 | $ | (417.5) | $ | (395.5) | $ | 55.4 | $ | 1,409.6 | Balance at December 31, 2019 | 234.9 | $ | 249.9 | $ | 1,474.1 | $ | 443.2 | $ | (417.5) | $ | (395.5) | $ | 55.4 | $ | 1,409.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | Comprehensive income (loss): | Comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 52.2 | — | — | 0.2 | 52.4 | Net income | — | — | — | 52.2 | — | — | 0.2 | 52.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized loss on derivatives, net of tax benefit of $6.0 million | Net realized and unrealized loss on derivatives, net of tax benefit of $6.0 million | — | — | — | — | — | (34.7) | — | (34.7) | Net realized and unrealized loss on derivatives, net of tax benefit of $6.0 million | — | — | — | — | — | (34.7) | — | (34.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax of $0.2 million | Long-term employee benefit plans, net of tax of $0.2 million | — | — | — | — | — | (0.4) | — | (0.4) | Long-term employee benefit plans, net of tax of $0.2 million | — | — | — | — | — | (0.4) | — | (0.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $0.0 million | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | (83.3) | (3.2) | (86.5) | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | (83.3) | (3.2) | (86.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive loss | Total comprehensive loss | — | — | — | 52.2 | — | (118.4) | (3.0) | (69.2) | Total comprehensive loss | — | — | — | 52.2 | — | (118.4) | (3.0) | (69.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of an accounting change | Cumulative effect of an accounting change | — | — | — | (1.5) | — | — | — | (1.5) | Cumulative effect of an accounting change | — | — | — | (1.5) | — | — | — | (1.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | Recognition of stock-based compensation | — | — | 5.1 | — | — | — | — | 5.1 | Recognition of stock-based compensation | — | — | 5.1 | — | — | — | — | 5.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | Shares issued under compensation plans | 0.4 | 0.5 | (1.6) | — | — | — | — | (1.1) | Shares issued under compensation plans | 0.4 | 0.5 | (1.6) | — | — | — | — | (1.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ownership changes relating to noncontrolling interests | Ownership changes relating to noncontrolling interests | — | — | 0.5 | — | — | — | (2.1) | (1.6) | Ownership changes relating to noncontrolling interests | — | — | 0.5 | — | — | — | (2.1) | (1.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to noncontrolling interests | Dividends declared to noncontrolling interests | — | — | — | — | — | — | (0.5) | (0.5) | Dividends declared to noncontrolling interests | — | — | — | — | — | — | (0.5) | (0.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | Balance at March 31, 2020 | 235.3 | 250.4 | 1,478.1 | 493.9 | (417.5) | (513.9) | 49.8 | 1,340.8 | Balance at March 31, 2020 | 235.3 | 250.4 | 1,478.1 | 493.9 | (417.5) | (513.9) | 49.8 | 1,340.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | Comprehensive income (loss): | Comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | (82.8) | — | — | (0.4) | (83.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | Net loss | — | — | — | (82.8) | — | — | (0.4) | (83.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized loss on derivatives, net of tax benefit of $0.4 million | Net realized and unrealized loss on derivatives, net of tax benefit of $0.4 million | — | — | — | — | — | (2.2) | — | (2.2) | Net realized and unrealized loss on derivatives, net of tax benefit of $0.4 million | — | — | — | — | — | (2.2) | — | (2.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax benefit of $0.2 million | Long-term employee benefit plans, net of tax benefit of $0.2 million | — | — | — | — | — | 0.4 | — | 0.4 | Long-term employee benefit plans, net of tax benefit of $0.2 million | — | — | — | — | — | 0.4 | — | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $0.0 million | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | 6.1 | 0.9 | 7.0 | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | 6.1 | 0.9 | 7.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | Total comprehensive income (loss) | — | — | — | (82.8) | — | 4.3 | 0.5 | (78.0) | Total comprehensive income (loss) | — | — | — | (82.8) | — | 4.3 | 0.5 | (78.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | Recognition of stock-based compensation | — | — | 6.1 | — | — | — | — | 6.1 | Recognition of stock-based compensation | — | — | 6.1 | — | — | — | — | 6.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | Shares issued under compensation plans | 0.1 | 0.1 | 1.1 | — | — | — | — | 1.2 | Shares issued under compensation plans | 0.1 | 0.1 | 1.1 | — | — | — | — | 1.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in redeemable noncontrolling interests | Changes in redeemable noncontrolling interests | — | — | (5.8) | — | — | — | (4.8) | (10.6) | Changes in redeemable noncontrolling interests | — | — | (5.8) | — | — | — | (4.8) | (10.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock purchases | Common stock purchases | — | — | — | — | (0.9) | — | — | (0.9) | Common stock purchases | — | — | — | — | (0.9) | — | — | (0.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | Balance at June 30, 2020 | 235.4 | $ | 250.5 | $ | 1,479.5 | $ | 411.1 | $ | (418.4) | $ | (509.6) | $ | 45.5 | $ | 1,258.6 | Balance at June 30, 2020 | 235.4 | 250.5 | 1,479.5 | 411.1 | (418.4) | (509.6) | 45.5 | 1,258.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 82.5 | — | — | — | 82.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized loss on derivatives, net of tax of $1.0 million | Net realized and unrealized loss on derivatives, net of tax of $1.0 million | — | — | — | — | — | 6.0 | — | 6.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax of $0.0 million | Long-term employee benefit plans, net of tax of $0.0 million | — | — | — | — | — | (0.5) | — | (0.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $0.0 million | Foreign currency translation, net of tax of $0.0 million | — | — | — | — | — | 33.9 | (0.5) | 33.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | Total comprehensive income (loss) | — | — | — | 82.5 | — | 39.4 | (0.5) | 121.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | Recognition of stock-based compensation | — | — | 4.7 | — | — | — | — | 4.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | Shares issued under compensation plans | 0.1 | 0.1 | (0.1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | Balance at September 30, 2020 | 235.5 | $ | 250.6 | $ | 1,484.1 | $ | 493.6 | $ | (418.4) | $ | (470.2) | $ | 45.0 | $ | 1,384.7 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operating activities: | Operating activities: | Operating activities: | ||||||||||||||||||||||||||
Net income (loss) | $ | 142.1 | $ | (30.8) | ||||||||||||||||||||||||
Adjustment to reconcile net income (loss) to cash provided by operating activities: | ||||||||||||||||||||||||||||
Net income | Net income | $ | 211.0 | $ | 51.7 | |||||||||||||||||||||||
Adjustment to reconcile net income to cash provided by operating activities: | Adjustment to reconcile net income to cash provided by operating activities: | |||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 155.4 | 163.2 | Depreciation and amortization | 234.7 | 243.6 | ||||||||||||||||||||||
Amortization of deferred financing costs and original issue discount | Amortization of deferred financing costs and original issue discount | 4.2 | 4.1 | Amortization of deferred financing costs and original issue discount | 6.7 | 6.8 | ||||||||||||||||||||||
Debt extinguishment and refinancing related costs | 0.2 | 2.4 | ||||||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | 5.2 | (61.2) | Deferred income taxes | 9.3 | (57.2) | ||||||||||||||||||||||
Realized and unrealized foreign exchange losses, net | Realized and unrealized foreign exchange losses, net | 9.4 | 2.8 | Realized and unrealized foreign exchange losses, net | 9.5 | 12.7 | ||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | 7.8 | 11.2 | Stock-based compensation | 11.7 | 15.9 | ||||||||||||||||||||||
Divestiture and impairment charges | 0 | 3.2 | ||||||||||||||||||||||||||
Gain on sale of facility | Gain on sale of facility | (8.9) | — | |||||||||||||||||||||||||
Interest income on swaps designated as net investment hedges | Interest income on swaps designated as net investment hedges | (7.1) | (7.3) | Interest income on swaps designated as net investment hedges | (14.3) | (11.0) | ||||||||||||||||||||||
Other non-cash, net | Other non-cash, net | 9.2 | 8.3 | Other non-cash, net | 11.3 | 8.6 | ||||||||||||||||||||||
Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
Trade accounts and notes receivable | Trade accounts and notes receivable | (154.2) | 136.8 | Trade accounts and notes receivable | (168.5) | (14.0) | ||||||||||||||||||||||
Inventories | Inventories | (59.1) | 32.5 | Inventories | (107.8) | 43.2 | ||||||||||||||||||||||
Prepaid expenses and other assets | Prepaid expenses and other assets | (53.4) | (60.3) | Prepaid expenses and other assets | (64.3) | (60.8) | ||||||||||||||||||||||
Accounts payable | Accounts payable | 60.0 | (131.0) | Accounts payable | 88.3 | 15.2 | ||||||||||||||||||||||
Other accrued liabilities | Other accrued liabilities | 24.5 | (87.9) | Other accrued liabilities | 61.3 | (40.9) | ||||||||||||||||||||||
Other liabilities | Other liabilities | 2.9 | 11.5 | Other liabilities | 10.0 | 17.1 | ||||||||||||||||||||||
Cash provided by (used for) operating activities | 147.1 | (2.5) | ||||||||||||||||||||||||||
Cash provided by operating activities | Cash provided by operating activities | 290.0 | 230.9 | |||||||||||||||||||||||||
Investing activities: | Investing activities: | Investing activities: | ||||||||||||||||||||||||||
Acquisitions, net of cash acquired | Acquisitions, net of cash acquired | (37.6) | 0 | Acquisitions, net of cash acquired | (647.3) | — | ||||||||||||||||||||||
Purchase of property, plant and equipment | Purchase of property, plant and equipment | (60.3) | (42.4) | Purchase of property, plant and equipment | (98.7) | (56.2) | ||||||||||||||||||||||
Interest proceeds on swaps designated as net investment hedges | Interest proceeds on swaps designated as net investment hedges | 7.1 | 7.3 | Interest proceeds on swaps designated as net investment hedges | 14.3 | 11.0 | ||||||||||||||||||||||
Other investing activities, net | Other investing activities, net | (0.5) | 0.8 | Other investing activities, net | 11.8 | 5.9 | ||||||||||||||||||||||
Cash used for investing activities | Cash used for investing activities | (91.3) | (34.3) | Cash used for investing activities | (719.9) | (39.3) | ||||||||||||||||||||||
Financing activities: | Financing activities: | Financing activities: | ||||||||||||||||||||||||||
Proceeds from long-term borrowings | Proceeds from long-term borrowings | 0 | 500.0 | Proceeds from long-term borrowings | — | 500.0 | ||||||||||||||||||||||
Payments on short-term borrowings | Payments on short-term borrowings | (41.1) | (18.6) | Payments on short-term borrowings | (54.5) | (23.2) | ||||||||||||||||||||||
Payments on long-term borrowings | Payments on long-term borrowings | (14.2) | (313.1) | Payments on long-term borrowings | (20.1) | (325.3) | ||||||||||||||||||||||
Financing-related costs | Financing-related costs | (2.5) | (6.0) | Financing-related costs | (2.6) | (8.4) | ||||||||||||||||||||||
Purchases of common stock | Purchases of common stock | (123.7) | (0.9) | Purchases of common stock | (213.8) | (0.9) | ||||||||||||||||||||||
Net cash flows associated with stock-based awards | Net cash flows associated with stock-based awards | 12.8 | 0.3 | Net cash flows associated with stock-based awards | 12.7 | 0.3 | ||||||||||||||||||||||
Purchase of noncontrolling interests | Purchase of noncontrolling interests | 0 | (1.6) | Purchase of noncontrolling interests | — | (5.8) | ||||||||||||||||||||||
Other financing activities, net | Other financing activities, net | (1.2) | (1.0) | Other financing activities, net | (1.2) | 0.1 | ||||||||||||||||||||||
Cash (used for) provided by financing activities | Cash (used for) provided by financing activities | (169.9) | 159.1 | Cash (used for) provided by financing activities | (279.5) | 136.8 | ||||||||||||||||||||||
(Decrease) increase in cash | (Decrease) increase in cash | (114.1) | 122.3 | (Decrease) increase in cash | (709.4) | 328.4 | ||||||||||||||||||||||
Effect of exchange rate changes on cash | Effect of exchange rate changes on cash | (8.4) | (16.3) | Effect of exchange rate changes on cash | (16.5) | (4.7) | ||||||||||||||||||||||
Cash at beginning of period | Cash at beginning of period | 1,364.0 | 1,020.5 | Cash at beginning of period | 1,364.0 | 1,020.5 | ||||||||||||||||||||||
Cash at end of period | Cash at end of period | $ | 1,241.5 | $ | 1,126.5 | Cash at end of period | $ | 638.1 | $ | 1,344.2 | ||||||||||||||||||
Cash at end of period reconciliation: | Cash at end of period reconciliation: | Cash at end of period reconciliation: | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 1,230.9 | $ | 1,123.6 | Cash and cash equivalents | $ | 627.7 | $ | 1,341.3 | ||||||||||||||||||
Restricted cash | Restricted cash | 10.6 | 2.9 | Restricted cash | 10.4 | 2.9 | ||||||||||||||||||||||
Cash at end of period | Cash at end of period | $ | 1,241.5 | $ | 1,126.5 | Cash at end of period | $ | 638.1 | $ | 1,344.2 |
Note | Page | |||||||
September 15, 2021 | ||||||||
Cash | $ | 23.7 | ||||||
Accounts and notes receivable, net | 22.5 | |||||||
Inventories | 23.3 | |||||||
Prepaid expenses and other current assets, net | 3.2 | |||||||
Property, plant and equipment, net | 16.5 | |||||||
Identifiable intangible assets | 273.0 | |||||||
Other assets | 2.0 | |||||||
Accounts payable | (20.9) | |||||||
Other accrued liabilities | (3.9) | |||||||
Other liabilities | (0.9) | |||||||
Deferred income taxes | (68.4) | |||||||
Net assets before goodwill from acquisition | 270.1 | |||||||
Goodwill from acquisition | 349.7 | |||||||
Net assets acquired | $ | 619.8 |
Performance Coatings | Mobility Coatings | Total | Performance Coatings | Mobility Coatings | Total | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | Balance at December 31, 2020 | $ | 1,211.3 | $ | 83.6 | $ | 1,294.9 | Balance at December 31, 2020 | $ | 1,211.3 | $ | 83.6 | $ | 1,294.9 | ||||||||||||||||||||||||||
Goodwill from acquisitions | Goodwill from acquisitions | 23.1 | 0 | 23.1 | Goodwill from acquisitions | 372.8 | — | 372.8 | ||||||||||||||||||||||||||||||||
Foreign currency translation | Foreign currency translation | (22.1) | (1.6) | (23.7) | Foreign currency translation | (45.2) | (2.7) | (47.9) | ||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 1,212.3 | $ | 82.0 | $ | 1,294.3 | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | Balance at September 30, 2021 | $ | 1,538.9 | $ | 80.9 | $ | 1,619.8 |
June 30, 2021 | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Weighted average amortization periods (years) | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Weighted average amortization periods (years) | |||||||||||||||||||||||||||||||||||||||||||||||
Technology | Technology | $ | 561.5 | $ | (404.3) | $ | 157.2 | 10.4 | Technology | $ | 592.8 | $ | (413.5) | $ | 179.3 | 10.2 | ||||||||||||||||||||||||||||||||||||
Trademarks—indefinite-lived | Trademarks—indefinite-lived | 276.8 | — | 276.8 | Indefinite | Trademarks—indefinite-lived | 272.8 | — | 272.8 | Indefinite | ||||||||||||||||||||||||||||||||||||||||||
Trademarks—definite-lived | Trademarks—definite-lived | 103.1 | (40.3) | 62.8 | 15.8 | Trademarks—definite-lived | 136.1 | (41.8) | 94.3 | 14.4 | ||||||||||||||||||||||||||||||||||||||||||
Customer relationships | Customer relationships | 949.2 | (352.0) | 597.2 | 19.0 | Customer relationships | 1,130.3 | (355.7) | 774.6 | 19.2 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 15.0 | (12.4) | 2.6 | 5.0 | Other | 15.1 | (13.1) | 2.0 | 5.0 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,905.6 | $ | (809.0) | $ | 1,096.6 | Total | $ | 2,147.1 | $ | (824.1) | $ | 1,323.0 |
December 31, 2020 | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Weighted average amortization periods (years) | ||||||||||||||||||||||
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 |
Remainder of 2021 | Remainder of 2021 | $ | 58.5 | Remainder of 2021 | $ | 33.6 | ||||||||||
2022 | 2022 | 114.6 | 2022 | 132.1 | ||||||||||||
2023 | 2023 | 73.7 | 2023 | 91.5 | ||||||||||||
2024 | 2024 | 68.7 | 2024 | 86.7 | ||||||||||||
2025 | 2025 | 68.0 | 2025 | 86.0 | ||||||||||||
2026 | 2026 | 67.5 | 2026 | 85.4 |
2021 Activity | ||||||||
Balance at December 31, 2020 | $ | 55.8 | ||||||
Expenses, net of changes to estimates | ||||||||
Payments made | ||||||||
Foreign currency translation | ||||||||
Balance at | $ |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic benefit cost: | Components of net periodic benefit cost: | Components of net periodic benefit cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost: | Net periodic benefit cost: | Net periodic benefit cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | 2.0 | $ | 1.9 | $ | 3.8 | $ | 3.7 | Service cost | $ | 2.0 | $ | 1.8 | $ | 5.8 | $ | 5.5 | ||||||||||||||||||||||||||||||||||
Interest cost | Interest cost | 1.9 | 2.3 | 3.9 | 4.6 | Interest cost | 1.9 | 2.6 | 5.8 | 7.2 | ||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | Expected return on plan assets | (3.5) | (3.1) | (6.9) | (6.3) | Expected return on plan assets | (3.4) | (3.2) | (10.3) | (9.5) | ||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss, net | Amortization of actuarial loss, net | 1.3 | 0.8 | 2.5 | 1.8 | Amortization of actuarial loss, net | 1.3 | 0.7 | 3.8 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost, net | Amortization of prior service cost, net | (0.1) | — | (0.1) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Plan curtailments | Plan curtailments | 0 | (0.6) | 0 | (1.8) | Plan curtailments | — | (0.7) | — | (2.5) | ||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | Net periodic benefit cost | $ | 1.7 | $ | 1.3 | $ | 3.3 | $ | 2.0 | Net periodic benefit cost | $ | 1.7 | $ | 1.2 | $ | 5.0 | $ | 3.2 |
Stock Options | Stock Options | Awards (in millions) | Weighted- Average Exercise Price | Aggregate Intrinsic Value (in millions) | Weighted Average Remaining Contractual Life (years) | Stock Options | Awards (in millions) | Weighted- Average Exercise Price | Aggregate Intrinsic Value (in millions) | Weighted Average Remaining Contractual Life (years) | ||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2021 | Outstanding at January 1, 2021 | 2.5 | $ | 27.34 | Outstanding at January 1, 2021 | 2.5 | $ | 27.34 | ||||||||||||||||||||||||||||||||||||||||||||
Granted | Granted | 0 | $ | 0 | Granted | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||
Exercised | Exercised | (0.5) | $ | 28.26 | Exercised | (0.5) | $ | 28.26 | ||||||||||||||||||||||||||||||||||||||||||||
Forfeited / Expired | Forfeited / Expired | (0.4) | $ | 32.00 | Forfeited / Expired | (0.4) | $ | 31.92 | ||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at September 30, 2021 | Outstanding at September 30, 2021 | 1.6 | $ | 25.65 | ||||||||||||||||||||||||||||||||||||||||||||||||
Vested and expected to vest at September 30, 2021 | Vested and expected to vest at September 30, 2021 | 1.6 | $ | 25.65 | $ | 6.4 | 5.14 | |||||||||||||||||||||||||||||||||||||||||||||
Exercisable at September 30, 2021 | Exercisable at September 30, 2021 | 1.4 | $ | 25.50 | $ | 6.0 | 4.86 |
Restricted Stock Awards and Restricted Stock Units (1) | Restricted Stock Awards and Restricted Stock Units (1) | Awards/Units (millions) | Weighted-Average Fair Value | Restricted Stock Awards and Restricted Stock Units (1) | Awards/Units (millions) | Weighted-Average Fair Value | ||||||||||||||||||||||
Outstanding at January 1, 2021 | Outstanding at January 1, 2021 | 1.0 | $ | 28.84 | Outstanding at January 1, 2021 | 1.0 | $ | 28.84 | ||||||||||||||||||||
Granted | Granted | 0.6 | $ | 28.75 | Granted | 0.6 | $ | 28.85 | ||||||||||||||||||||
Vested | Vested | (0.4) | $ | 29.06 | Vested | (0.4) | $ | 29.04 | ||||||||||||||||||||
Forfeited | Forfeited | (0.1) | $ | 29.05 | Forfeited | (0.1) | $ | 28.92 | ||||||||||||||||||||
Outstanding at June 30, 2021 | 1.1 | $ | 28.69 | |||||||||||||||||||||||||
Outstanding at September 30, 2021 | Outstanding at September 30, 2021 | 1.1 | $ | 28.75 |
Performance Stock Awards and Performance Share Units (1) | Performance Stock Awards and Performance Share Units (1) | Awards/Units (millions) | Weighted-Average Fair Value | Performance Stock Awards and Performance Share Units (1) | Awards/Units (millions) | Weighted-Average Fair Value | ||||||||||||||||||||||
Outstanding at January 1, 2021 | Outstanding at January 1, 2021 | 0.5 | $ | 31.07 | Outstanding at January 1, 2021 | 0.5 | $ | 31.07 | ||||||||||||||||||||
Granted | Granted | 0.4 | $ | 29.53 | Granted | 0.4 | $ | 29.53 | ||||||||||||||||||||
Vested | Vested | 0 | $ | 0 | Vested | — | $ | — | ||||||||||||||||||||
Forfeited | Forfeited | (0.2) | $ | 31.85 | Forfeited | (0.2) | $ | 31.84 | ||||||||||||||||||||
Outstanding at June 30, 2021 | 0.7 | $ | 30.11 | |||||||||||||||||||||||||
Outstanding at September 30, 2021 | Outstanding at September 30, 2021 | 0.7 | $ | 30.11 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange losses (gains), net | $ | 1.8 | $ | (0.3) | $ | 3.6 | $ | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange (gain) losses, net | Foreign exchange (gain) losses, net | $ | (0.7) | $ | 5.5 | $ | 2.9 | $ | 7.5 | |||||||||||||||||||||||||||||||||||||||||||
Debt extinguishment and refinancing related costs | Debt extinguishment and refinancing related costs | 0.2 | 0 | 0.2 | 2.4 | Debt extinguishment and refinancing related costs | — | — | 0.2 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||
Other miscellaneous income, net (1) | Other miscellaneous income, net (1) | (10.1) | (1.9) | (12.3) | (5.8) | Other miscellaneous income, net (1) | (1.7) | (3.2) | (14.0) | (9.0) | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | (8.1) | $ | (2.2) | $ | (8.5) | $ | (1.4) | Total | $ | (2.4) | $ | 2.3 | $ | (10.9) | $ | 0.9 |
Six Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Effective Tax Rate | 23.0 | % | 56.4 | % |
Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Effective Tax Rate | 24.1 | % | (78.3) | % |
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) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(In millions, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net income to common shareholders | $ | 69.1 | $ | 82.5 | $ | 210.7 | $ | 51.9 | ||||||||||||||||||
Basic weighted average shares outstanding | 229.9 | 235.3 | 232.1 | 235.1 | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 230.7 | 236.0 | 233.0 | 235.9 | ||||||||||||||||||||||
Net income per common share: | ||||||||||||||||||||||||||
Basic net income per share | $ | 0.30 | $ | 0.35 | $ | 0.91 | $ | 0.22 | ||||||||||||||||||
Diluted net income per share | $ | 0.30 | $ | 0.35 | $ | 0.90 | $ | 0.22 |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Accounts receivable - trade, net (1) | Accounts receivable - trade, net (1) | $ | 864.4 | $ | 738.3 | Accounts receivable - trade, net (1) | $ | 859.2 | $ | 738.3 | ||||||||||||||||||
Notes receivable | Notes receivable | 26.4 | 30.3 | Notes receivable | 23.2 | 30.3 | ||||||||||||||||||||||
Other (2) | Other (2) | 144.9 | 101.2 | Other (2) | 167.7 | 101.2 | ||||||||||||||||||||||
Total | Total | $ | 1,035.7 | $ | 869.8 | Total | $ | 1,050.1 | $ | 869.8 |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Finished products | Finished products | $ | 324.1 | $ | 319.3 | Finished products | $ | 364.0 | $ | 319.3 | ||||||||||||||||||
Semi-finished products | Semi-finished products | 106.2 | 92.2 | Semi-finished products | 112.5 | 92.2 | ||||||||||||||||||||||
Raw materials | Raw materials | 161.0 | 127.2 | Raw materials | 178.4 | 127.2 | ||||||||||||||||||||||
Stores and supplies | Stores and supplies | 23.2 | 21.2 | Stores and supplies | 23.0 | 21.2 | ||||||||||||||||||||||
Total | Total | $ | 614.5 | $ | 559.9 | Total | $ | 677.9 | $ | 559.9 |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Property, plant and equipment | Property, plant and equipment | $ | 2,350.3 | $ | 2,317.9 | Property, plant and equipment | $ | 2,293.8 | $ | 2,317.9 | ||||||||||||||||||
Accumulated depreciation | Accumulated depreciation | (1,167.0) | (1,123.4) | Accumulated depreciation | (1,100.3) | (1,123.4) | ||||||||||||||||||||||
Property, plant, and equipment, net | Property, plant, and equipment, net | $ | 1,183.3 | $ | 1,194.5 | Property, plant, and equipment, net | $ | 1,193.5 | $ | 1,194.5 |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
2024 Dollar Term Loans | 2024 Dollar Term Loans | $ | 2,051.0 | $ | 2,063.2 | 2024 Dollar Term Loans | $ | 2,045.0 | $ | 2,063.2 | ||||||||||||||||||
2025 Euro Senior Notes | 2025 Euro Senior Notes | 535.8 | 552.1 | 2025 Euro Senior Notes | 525.2 | 552.1 | ||||||||||||||||||||||
2027 Dollar Senior Notes | 2027 Dollar Senior Notes | 500.0 | 500.0 | 2027 Dollar Senior Notes | 500.0 | 500.0 | ||||||||||||||||||||||
2029 Dollar Senior Notes | 2029 Dollar Senior Notes | 700.0 | 700.0 | 2029 Dollar Senior Notes | 700.0 | 700.0 | ||||||||||||||||||||||
Short-term and other borrowings | Short-term and other borrowings | 103.0 | 118.0 | Short-term and other borrowings | 106.4 | 118.0 | ||||||||||||||||||||||
Unamortized original issue discount | Unamortized original issue discount | (5.5) | (6.3) | Unamortized original issue discount | (5.1) | (6.3) | ||||||||||||||||||||||
Unamortized deferred financing costs | Unamortized deferred financing costs | (30.4) | (34.3) | Unamortized deferred financing costs | (29.0) | (34.3) | ||||||||||||||||||||||
Total borrowings, net | Total borrowings, net | 3,853.9 | 3,892.7 | Total borrowings, net | 3,842.5 | 3,892.7 | ||||||||||||||||||||||
Less: | Less: | Less: | ||||||||||||||||||||||||||
Short-term borrowings | Short-term borrowings | 16.2 | 29.9 | Short-term borrowings | 19.0 | 29.9 | ||||||||||||||||||||||
Current portion of long-term borrowings | Current portion of long-term borrowings | 24.3 | 24.3 | Current portion of long-term borrowings | 24.3 | 24.3 | ||||||||||||||||||||||
Long-term debt | Long-term debt | $ | 3,813.4 | $ | 3,838.5 | Long-term debt | $ | 3,799.2 | $ | 3,838.5 |
Remainder of 2021 | Remainder of 2021 | $ | 26.1 | Remainder of 2021 | $ | 21.6 | ||||||||||
2022 | 2022 | 54.4 | 2022 | 54.4 | ||||||||||||
2023 | 2023 | 27.3 | 2023 | 27.3 | ||||||||||||
2024 | 2024 | 1,993.3 | 2024 | 1,993.3 | ||||||||||||
2025 | 2025 | 539.1 | 2025 | 528.5 | ||||||||||||
Thereafter | Thereafter | 1,249.6 | Thereafter | 1,251.5 | ||||||||||||
Total borrowings | Total borrowings | 3,889.8 | Total borrowings | 3,876.6 | ||||||||||||
Unamortized original issue discount | Unamortized original issue discount | (5.5) | Unamortized original issue discount | (5.1) | ||||||||||||
Unamortized deferred financing costs | Unamortized deferred financing costs | (30.4) | Unamortized deferred financing costs | (29.0) | ||||||||||||
Total borrowings, net | Total borrowings, net | $ | 3,853.9 | Total borrowings, net | $ | 3,842.5 |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | Prepaid expenses and other current assets: | Prepaid expenses and other current assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps (2) | Cross-currency swaps (2) | $ | 0 | $ | 17.1 | $ | 0 | $ | 17.1 | $ | 0 | $ | 16.7 | $ | 0 | $ | 16.7 | Cross-currency swaps (2) | $ | — | $ | 18.6 | $ | — | $ | 18.6 | $ | — | $ | 16.7 | $ | — | $ | 16.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts (1) | Foreign currency forward contracts (1) | — | 0.1 | — | 0.1 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets: | Other assets: | Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in equity securities | Investments in equity securities | 0.7 | 0 | 0 | 0.7 | 0.8 | 0 | 0 | 0.8 | Investments in equity securities | 0.7 | — | — | 0.7 | 0.8 | — | — | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other accrued liabilities: | Other accrued liabilities: | Other accrued liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps (1) | Interest rate caps (1) | 0 | 1.0 | 0 | 1.0 | 0 | 2.0 | 0 | 2.0 | Interest rate caps (1) | — | 0.5 | — | 0.5 | — | 2.0 | — | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps (1) | Interest rate swaps (1) | 0 | 29.2 | 0 | 29.2 | 0 | 28.9 | 0 | 28.9 | Interest rate swaps (1) | — | 29.3 | — | 29.3 | — | 28.9 | — | 28.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | Contingent consideration | 0 | 0 | 4.4 | 4.4 | 0 | 0 | 0 | 0 | Contingent consideration | — | — | 7.3 | 7.3 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | Other liabilities: | Other liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps (1) | Interest rate swaps (1) | 0 | 16.0 | 0 | 16.0 | 0 | 31.1 | 0 | 31.1 | Interest rate swaps (1) | — | 9.3 | — | 9.3 | — | 31.1 | — | 31.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps (2) | Cross-currency swaps (2) | 0 | 31.9 | 0 | 31.9 | 0 | 52.0 | 0 | 52.0 | Cross-currency swaps (2) | — | 17.8 | — | 17.8 | — | 52.0 | — | 52.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | 0 | 0 | 2.9 | 2.9 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term borrowings: | Long-term borrowings: | Long-term borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 Dollar Term Loans | 2024 Dollar Term Loans | 0 | 2,045.0 | 0 | 2,045.0 | 0 | 2,043.0 | 0 | 2,043.0 | 2024 Dollar Term Loans | — | 2,039.6 | — | 2,039.6 | — | 2,043.0 | — | 2,043.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2025 Euro Senior Notes | 2025 Euro Senior Notes | 0 | 546.2 | 0 | 546.2 | 0 | 564.3 | 0 | 564.3 | 2025 Euro Senior Notes | — | 534.8 | — | 534.8 | — | 564.3 | — | 564.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2027 Dollar Senior Notes | 2027 Dollar Senior Notes | 0 | 524.6 | 0 | 524.6 | 0 | 533.1 | 0 | 533.1 | 2027 Dollar Senior Notes | — | 521.6 | — | 521.6 | — | 533.1 | — | 533.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2029 Dollar Senior Notes | 2029 Dollar Senior Notes | 0 | 685.0 | 0 | 685.0 | 0 | 704.6 | 0 | 704.6 | 2029 Dollar Senior Notes | — | 684.6 | — | 684.6 | — | 704.6 | — | 704.6 |
Fair Value Using Significant Unobservable Inputs (Level 3) | ||||||||
Beginning balance January 1, 2021 | $ | |||||||
Business acquisition | 7.3 | |||||||
Ending balance at | $ | 7.3 |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
AOCI: | AOCI: | AOCI: | ||||||||||||||||||||||||||
Interest rate caps (cash flow hedges) | Interest rate caps (cash flow hedges) | $ | 1.4 | $ | 2.6 | Interest rate caps (cash flow hedges) | $ | 0.7 | $ | 2.6 | ||||||||||||||||||
Interest rate swaps (cash flow hedges) | Interest rate swaps (cash flow hedges) | 45.2 | 60.0 | Interest rate swaps (cash flow hedges) | 38.6 | 60.0 | ||||||||||||||||||||||
Foreign currency forward contracts (cash flow hedges) | Foreign currency forward contracts (cash flow hedges) | 0.2 | 0.3 | Foreign currency forward contracts (cash flow hedges) | 0.1 | 0.3 | ||||||||||||||||||||||
Cross-currency swaps (net investment hedges) | Cross-currency swaps (net investment hedges) | 14.8 | 35.2 | Cross-currency swaps (net investment hedges) | (0.8) | 35.2 | ||||||||||||||||||||||
Total AOCI | Total AOCI | $ | 61.6 | $ | 98.1 | Total AOCI | $ | 38.6 | $ | 98.1 |
For the Three Months Ended June 30, | For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow and Net Investment Hedges | 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 | 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 Recognized in OCI on Derivatives | Amount of Loss (Gain) Recognized in Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | Interest rate caps | Interest expense, net | $ | 0 | $ | 0.6 | $ | 0 | $ | 0.6 | Interest rate caps | Interest expense, net | $ | — | $ | 0.7 | $ | 0.1 | $ | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | Interest expense, net | 0.9 | 7.2 | 6.1 | 2.9 | Interest rate swaps | Interest expense, net | 0.9 | 7.5 | 0.4 | 7.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Foreign currency forward contracts | Cost of goods sold | 0.1 | 0.1 | 0 | 0 | Foreign currency forward contracts | Cost of goods sold | — | 0.1 | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | Cross-currency swaps | Interest expense, net | (0.3) | (4.7) | 3.1 | (3.7) | Cross-currency swaps | Interest expense, net | (20.4) | (4.8) | 16.9 | (3.6) |
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 | $ | 0 | $ | 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 | 0.1 | 0 | 0 | |||||||||||||||||||||||||||
Cross-currency swaps | Interest expense, net | (29.9) | (9.5) | (19.4) | (7.4) |
For the Nine Months Ended September 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 | $ | — | $ | 1.9 | $ | 1.2 | $ | 1.5 | |||||||||||||||||||||||
Interest rate swaps | Interest expense, net | 0.3 | 21.7 | 48.0 | 11.5 | |||||||||||||||||||||||||||
Foreign currency forward contracts | Cost of goods sold | — | 0.2 | 0.1 | — | |||||||||||||||||||||||||||
Cross-currency swaps | Interest expense, net | (50.3) | (14.3) | (2.5) | (11.0) |
Derivatives Not Designated as Hedging Instruments under ASC 815 | Derivatives Not Designated as Hedging Instruments under ASC 815 | Location of Gain (Loss) Recognized in Income (Loss) on Derivatives | Three Months Ended June 30, | Six Months Ended June 30, | Derivatives Not Designated as Hedging Instruments under ASC 815 | Location of Loss Recognized in Income on Derivatives | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Foreign currency forward contracts | Other income, net | $ | 0.9 | $ | 0.8 | $ | (5.9) | $ | (0.9) | Foreign currency forward contracts | Other (income) expense, net | $ | (0.9) | $ | (4.4) | $ | (6.8) | $ | (5.3) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Net sales (1): | Net sales (1): | Net sales (1): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Refinish | Refinish | $ | 463.1 | $ | 261.9 | $ | 862.1 | $ | 629.7 | Refinish | $ | 443.4 | $ | 401.7 | $ | 1,305.5 | $ | 1,031.4 | ||||||||||||||||||||||||||||||||||
Industrial | Industrial | 342.7 | 220.2 | 651.0 | 500.1 | Industrial | 335.8 | 281.0 | 986.8 | 781.1 | ||||||||||||||||||||||||||||||||||||||||||
Total Net sales Performance Coatings | Total Net sales Performance Coatings | 805.8 | 482.1 | 1,513.1 | 1,129.8 | Total Net sales Performance Coatings | 779.2 | 682.7 | 2,292.3 | 1,812.5 | ||||||||||||||||||||||||||||||||||||||||||
Light Vehicle | Light Vehicle | 243.9 | 126.3 | 522.8 | 386.4 | Light Vehicle | 235.4 | 276.3 | 758.2 | 662.7 | ||||||||||||||||||||||||||||||||||||||||||
Commercial Vehicle | Commercial Vehicle | 77.1 | 44.3 | 154.5 | 120.0 | Commercial Vehicle | 74.0 | 67.9 | 228.5 | 187.9 | ||||||||||||||||||||||||||||||||||||||||||
Total Net sales Mobility Coatings | Total Net sales Mobility Coatings | 321.0 | 170.6 | 677.3 | 506.4 | Total Net sales Mobility Coatings | 309.4 | 344.2 | 986.7 | 850.6 | ||||||||||||||||||||||||||||||||||||||||||
Total Net sales | Total Net sales | $ | 1,126.8 | $ | 652.7 | $ | 2,190.4 | $ | 1,636.2 | Total Net sales | $ | 1,088.6 | $ | 1,026.9 | $ | 3,279.0 | $ | 2,663.1 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization expense (2): | Depreciation and amortization expense (2): | |||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Coatings | Performance Coatings | $ | 57.0 | $ | 57.4 | $ | 167.4 | $ | 175.3 | |||||||||||||||||||||||||||||||||||||||||||
Mobility Coatings | Mobility Coatings | 22.3 | 23.0 | 67.3 | 68.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Depreciation and amortization expense | Total Depreciation and amortization expense | $ | 79.3 | $ | 80.4 | $ | 234.7 | $ | 243.6 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Segment Adjusted EBIT (1): | Segment Adjusted EBIT (1): | Segment Adjusted EBIT (1): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Coatings | Performance Coatings | $ | 139.7 | $ | 1.5 | $ | 256.9 | $ | 80.9 | Performance Coatings | $ | 122.8 | $ | 133.9 | $ | 379.7 | $ | 214.8 | ||||||||||||||||||||||||||||||||||
Mobility Coatings | Mobility Coatings | 5.7 | (39.3) | 44.9 | (13.5) | Mobility Coatings | (2.7) | 48.5 | 42.2 | 35.0 | ||||||||||||||||||||||||||||||||||||||||||
Total (2) | Total (2) | 145.4 | (37.8) | 301.8 | 67.4 | Total (2) | 120.1 | 182.4 | 421.9 | 249.8 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | 33.4 | 36.1 | 66.9 | 72.6 | Interest expense, net | 33.8 | 39.8 | 100.7 | 112.4 | ||||||||||||||||||||||||||||||||||||||||||
Debt extinguishment and refinancing related costs (a) | Debt extinguishment and refinancing related costs (a) | 0.2 | 0 | 0.2 | 2.4 | Debt extinguishment and refinancing related costs (a) | — | — | 0.2 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||
Termination benefits and other employee related costs (b) | Termination benefits and other employee related costs (b) | 22.7 | 15.2 | 25.5 | 34.7 | Termination benefits and other employee related costs (b) | 9.6 | 35.7 | 35.1 | 70.4 | ||||||||||||||||||||||||||||||||||||||||||
Strategic review and retention costs (c) | Strategic review and retention costs (c) | 2.2 | 6.7 | 7.6 | 18.2 | Strategic review and retention costs (c) | 2.1 | 6.9 | 9.7 | 25.1 | ||||||||||||||||||||||||||||||||||||||||||
Offering and transactional costs (d) | 1.4 | 0.1 | 1.6 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges(e) | 0 | 2.7 | 0 | 3.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition and divestiture-related costs (d) | Acquisition and divestiture-related costs (d) | 9.2 | 0.1 | 10.8 | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Impairment (benefits) charges(e) | Impairment (benefits) charges(e) | (0.8) | 0.3 | (0.8) | 3.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Pension special events (f) | Pension special events (f) | 0 | (0.6) | 0 | (1.8) | Pension special events (f) | — | (0.7) | — | (2.5) | ||||||||||||||||||||||||||||||||||||||||||
Accelerated depreciation (g) | Accelerated depreciation (g) | 0.6 | 0.4 | 1.2 | 8.5 | Accelerated depreciation (g) | 0.6 | 0.4 | 1.8 | 8.9 | ||||||||||||||||||||||||||||||||||||||||||
Indemnity income (h) | (0.1) | 0 | (0.1) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Indemnity (income) loss (h) | Indemnity (income) loss (h) | (0.1) | 0.3 | (0.2) | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Operational matter (i) | Operational matter (i) | (71.8) | 0 | 22.6 | 0 | Operational matter (i) | (18.7) | — | 3.9 | — | ||||||||||||||||||||||||||||||||||||||||||
Brazil indirect tax (j) | Brazil indirect tax (j) | (8.3) | 0 | (8.3) | 0 | Brazil indirect tax (j) | — | — | (8.3) | — | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 165.1 | $ | (98.4) | $ | 184.6 | $ | (70.6) | ||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of facility (k) | Gain on sale of facility (k) | (8.9) | — | (8.9) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | $ | 93.3 | $ | 99.6 | $ | 277.9 | $ | 29.0 |
(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 | ||||
(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 | ||||
(d) | Represents acquisition and divestiture-related expenses and non-cash fair value inventory adjustments associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. | ||||
(e) | Represents impairment (benefits) charges, which are not considered indicative of our ongoing performance. The current year benefit primarily reflects a recovered gain on a previously impaired asset. | ||||
(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 | ||||
(j) | Represents non-recurring income related to a law change with respect to certain Brazilian indirect taxes which was recorded within other (income) expense, net. | ||||
(k) | Represents non-recurring income | ||||
Unrealized Currency Translation Adjustments | Pension Adjustments | Unrealized (Loss) Gain on Derivatives | Accumulated Other Comprehensive (Loss) Income | Unrealized Currency Translation Adjustments | Pension Adjustments | Unrealized (Loss) Gain on Derivatives | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | Balance at December 31, 2020 | $ | (282.0) | $ | (88.7) | $ | (54.1) | $ | (424.8) | Balance at December 31, 2020 | $ | (282.0) | $ | (88.7) | $ | (54.1) | $ | (424.8) | ||||||||||||||||||||||||||||||||||
Current year deferrals to AOCI | Current year deferrals to AOCI | (37.4) | 0 | 1.3 | (36.1) | Current year deferrals to AOCI | (37.4) | — | 1.3 | (36.1) | ||||||||||||||||||||||||||||||||||||||||||
Reclassifications from AOCI to Net income | Reclassifications from AOCI to Net income | 0 | 0.7 | 6.6 | 7.3 | Reclassifications from AOCI to Net income | — | 0.7 | 6.6 | 7.3 | ||||||||||||||||||||||||||||||||||||||||||
Net Change | Net Change | (37.4) | 0.7 | 7.9 | (28.8) | Net Change | (37.4) | 0.7 | 7.9 | (28.8) | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | Balance at March 31, 2021 | (319.4) | (88.0) | (46.2) | (453.6) | Balance at March 31, 2021 | (319.4) | (88.0) | (46.2) | (453.6) | ||||||||||||||||||||||||||||||||||||||||||
Current year deferrals to AOCI | Current year deferrals to AOCI | 38.7 | 0 | (0.8) | 37.9 | Current year deferrals to AOCI | 38.7 | — | (0.8) | 37.9 | ||||||||||||||||||||||||||||||||||||||||||
Reclassifications from AOCI to Net income | Reclassifications from AOCI to Net income | 0 | 1.0 | 6.7 | 7.7 | Reclassifications from AOCI to Net income | — | 1.0 | 6.7 | 7.7 | ||||||||||||||||||||||||||||||||||||||||||
Net Change | Net Change | 38.7 | 1.0 | 5.9 | 45.6 | Net Change | 38.7 | 1.0 | 5.9 | 45.6 | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | Balance at June 30, 2021 | $ | (280.7) | $ | (87.0) | $ | (40.3) | $ | (408.0) | Balance at June 30, 2021 | (280.7) | (87.0) | (40.3) | (408.0) | ||||||||||||||||||||||||||||||||||||||
Current year deferrals to AOCI | Current year deferrals to AOCI | (37.4) | — | (0.8) | (38.2) | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications from AOCI to Net income | Reclassifications from AOCI to Net income | — | 0.8 | 7.1 | 7.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Net Change | Net Change | (37.4) | 0.8 | 6.3 | (30.3) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | Balance at September 30, 2021 | $ | (318.1) | $ | (86.2) | $ | (34.0) | $ | (438.3) |
Unrealized Currency Translation Adjustments | Pension Adjustments | Unrealized Gain (Loss) on Derivatives | Accumulated Other Comprehensive Income (Loss) | Unrealized Currency Translation Adjustments | Pension Adjustments | Unrealized (Loss) Gain on Derivatives | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | Balance at December 31, 2019 | $ | (297.0) | $ | (69.9) | $ | (28.6) | $ | (395.5) | Balance at December 31, 2019 | $ | (297.0) | $ | (69.9) | $ | (28.6) | $ | (395.5) | ||||||||||||||||||||||||||||||||||
Current year deferrals to AOCI | Current year deferrals to AOCI | (83.3) | 0 | (36.3) | (119.6) | Current year deferrals to AOCI | (83.3) | — | (36.3) | (119.6) | ||||||||||||||||||||||||||||||||||||||||||
Reclassifications from AOCI to Net loss | 0 | (0.4) | 1.6 | 1.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications from AOCI to Net income | Reclassifications from AOCI to Net income | — | (0.4) | 1.6 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Net Change | Net Change | (83.3) | (0.4) | (34.7) | (118.4) | Net Change | (83.3) | (0.4) | (34.7) | (118.4) | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | Balance at March 31, 2020 | (380.3) | (70.3) | (63.3) | (513.9) | Balance at March 31, 2020 | (380.3) | (70.3) | (63.3) | (513.9) | ||||||||||||||||||||||||||||||||||||||||||
Current year deferrals to AOCI | Current year deferrals to AOCI | 6.1 | 0 | (5.2) | 0.9 | Current year deferrals to AOCI | 6.1 | — | (5.2) | 0.9 | ||||||||||||||||||||||||||||||||||||||||||
Reclassifications from AOCI to Net loss | Reclassifications from AOCI to Net loss | 0 | 0.4 | 3.0 | 3.4 | Reclassifications from AOCI to Net loss | — | 0.4 | 3.0 | 3.4 | ||||||||||||||||||||||||||||||||||||||||||
Net Change | Net Change | 6.1 | 0.4 | (2.2) | 4.3 | Net Change | 6.1 | 0.4 | (2.2) | 4.3 | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | Balance at June 30, 2020 | $ | (374.2) | $ | (69.9) | $ | (65.5) | $ | (509.6) | Balance at June 30, 2020 | (374.2) | (69.9) | (65.5) | (509.6) | ||||||||||||||||||||||||||||||||||||||
Current year deferrals to AOCI | Current year deferrals to AOCI | 33.9 | (0.2) | (0.5) | 33.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications from AOCI to Net income | Reclassifications from AOCI to Net income | — | (0.3) | 6.5 | 6.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Net Change | Net Change | 33.9 | (0.5) | 6.0 | 39.4 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | Balance at September 30, 2020 | $ | (340.3) | $ | (70.4) | $ | (59.5) | $ | (470.2) |
(In millions) | (In millions) | Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | (In millions) | Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | % change | 2021 | 2020 | % change | 2021 | 2020 | % change | 2021 | 2020 | % change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Coatings | Performance Coatings | Performance Coatings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Refinish | Refinish | $ | 463.1 | $ | 261.9 | 76.8 | % | $ | 862.1 | $ | 629.7 | 36.9 | % | Refinish | $ | 443.4 | $ | 401.7 | 10.4 | % | $ | 1,305.5 | $ | 1,031.4 | 26.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | Industrial | 342.7 | 220.2 | 55.6 | % | 651.0 | 500.1 | 30.2 | % | Industrial | 335.8 | 281.0 | 19.5 | % | 986.8 | 781.1 | 26.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales Performance Coatings | Total Net sales Performance Coatings | 805.8 | 482.1 | 67.1 | % | 1,513.1 | 1,129.8 | 33.9 | % | Total Net sales Performance Coatings | 779.2 | 682.7 | 14.1 | % | 2,292.3 | 1,812.5 | 26.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mobility Coatings | Mobility Coatings | Mobility Coatings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Light Vehicle | Light Vehicle | 243.9 | 126.3 | 93.1 | % | 522.8 | 386.4 | 35.3 | % | Light Vehicle | 235.4 | 276.3 | (14.8) | % | 758.2 | 662.7 | 14.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Vehicle | Commercial Vehicle | 77.1 | 44.3 | 74.0 | % | 154.5 | 120.0 | 28.8 | % | Commercial Vehicle | 74.0 | 67.9 | 9.0 | % | 228.5 | 187.9 | 21.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales Mobility Coatings | Total Net sales Mobility Coatings | 321.0 | 170.6 | 88.2 | % | 677.3 | 506.4 | 33.7 | % | Total Net sales Mobility Coatings | 309.4 | 344.2 | (10.1) | % | 986.7 | 850.6 | 16.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | Total Net sales | $ | 1,126.8 | $ | 652.7 | 72.6 | % | $ | 2,190.4 | $ | 1,636.2 | 33.9 | % | Total Net sales | $ | 1,088.6 | $ | 1,026.9 | 6.0 | % | $ | 3,279.0 | $ | 2,663.1 | 23.1 | % |
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 1,126.8 | $ | 652.7 | $ | 474.1 | 72.6 | % | $ | 2,190.4 | $ | 1,636.2 | $ | 554.2 | 33.9 | % | Net sales | $ | 1,088.6 | $ | 1,026.9 | $ | 61.7 | 6.0 | % | $ | 3,279.0 | $ | 2,663.1 | $ | 615.9 | 23.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume effect | Volume effect | 56.4 | % | 25.3 | % | Volume effect | (1.6) | % | 14.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of acquisitions | Impact of acquisitions | 1.6 | % | 0.6 | % | Impact of acquisitions | 1.8 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price/Mix effect | Price/Mix effect | 9.3 | % | 3.9 | % | Price/Mix effect | 4.5 | % | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate effect | Exchange rate effect | 5.3 | % | 4.1 | % | Exchange rate effect | 1.3 | % | 3.0 | % |
Net sales increased due to the following: | ||
n Higher average selling price across both segments and most regions as a result of pricing actions taken to offset input price inflation | ||
n Favorable impact from acquisitions | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
Partially offset by: | ||
n Lower sales volumes driven by Mobility Coatings as a result of customer production limitations due to semiconductor chip and other supply chain shortages |
Net sales increased due to the following: | ||
n Higher sales volumes across both segments as a result of demand recovery from the impacts of COVID-19, muted by customer production limitations resulting from semiconductor and other supply-chain shortages | ||
n Higher average selling price driven | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | 745.3 | $ | 634.1 | $ | 111.2 | 17.5 | % | $ | 2,182.6 | $ | 1,780.1 | $ | 402.5 | 22.6 | % | ||||||||||||||||||||||||||||||||||
% of net sales | 68.5 | % | 61.7 | % | 66.6 | % | 66.8 | % |
n Higher | ||
n | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
n Unfavorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
n | ||
Partially offset by: | ||
n Lower sales volumes driven by | ||
Cost of sales as a percentage of net sales increased due to the following: | ||
n Higher variable input costs due to raw material inflation and supply chain impacts | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions | ||
n Higher operating costs due to the lapse of temporary cost savings in | ||
n Lower sales volume covering fixed costs | ||
Partially offset by: | ||
n Higher average selling prices |
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | 752.8 | $ | 499.2 | $ | 253.6 | 50.8 | % | $ | 1,437.3 | $ | 1,146.0 | $ | 291.3 | 25.4 | % | ||||||||||||||||||||||||||||||||||
% of net sales | 66.8 | % | 76.5 | % | 65.6 | % | 70.0 | % |
Cost of sales increased due to the following: | ||
n Higher sales volumes across both segments as a result of demand recovery from the impacts of COVID-19 | ||
n Higher variable input costs due to raw material inflation and supply chain impacts | ||
n Increased | ||
n Unfavorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
n Increased costs associated with the acquisitions | ||
Partially offset by: | ||
n Reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives, partially offset by the lapse of temporary cost savings in the prior year | ||
n Decreased expenses of $35.2 million associated with improved utilization at manufacturing sites in the current year as manufacturing utilization was negatively impacted in the 2020 period due to impacts from COVID-19 | ||
n Lower expenses in 2021 compared to 2020 of $7.9 million resulting from fewer inventory write-offs | ||
Cost of sales as a percentage of net sales decreased due to the following: | ||
n Higher sales volume covering fixed costs | ||
n Decreased expenses of $35.2 million associated with improved utilization at manufacturing sites in the current year as manufacturing utilization was negatively impacted in the 2020 period due to impacts from COVID-19 | ||
Partially offset by: | ||
n Higher variable input costs due to raw material inflation | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
SG&A | $ | 181.0 | $ | 166.5 | $ | 14.5 | 8.7 | % | $ | 544.3 | $ | 516.1 | $ | 28.2 | 5.5 | % | ||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses increased due to the following: | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
n Increased expenses as a result of acquisitions | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions | ||
n Unfavorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
Partially offset by: | ||
n Lower bad debt expenses in 2021 compared to 2020 of | ||
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
SG&A | $ | 184.2 | $ | 154.2 | $ | 30.0 | 19.5 | % | $ | 363.3 | $ | 349.6 | $ | 13.7 | 3.9 | % | ||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses increased due to the following: | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
n Increase in commissions and sales incentive compensation driven by increased sales | ||
n Increased expenses as a result of acquisitions | ||
nIncreased | ||
n Unfavorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
Partially offset by: | ||
n Lower bad debt expenses in 2021 compared to 2020 of |
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Other operating (benefits) charges | $ | (45.7) | $ | 24.7 | $ | (70.4) | (285.0) | % | $ | 57.1 | $ | 56.3 | $ | 0.8 | 1.4 | % | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Other operating (benefits) charges | $ | (7.6) | $ | 42.6 | $ | (50.2) | (117.8) | % | $ | 49.5 | $ | 98.9 | $ | (49.4) | (49.9) | % | ||||||||||||||||||||||||||||||||||
Other operating (benefits) charges | ||
nDecrease of $26.1 million in termination benefits and other employee related costs associated with our cost saving initiatives from $35.7 million in the prior year to $9.6 million in the current year | ||
n Benefits of | ||
n | ||
n | ||
Partially offset by: | ||
n Increase of |
Other operating (benefits) charges changed due to the following: | ||
nDecrease of $35.3 million in termination benefits and other employee related costs associated with our cost saving initiatives from |
nDecrease of $15.4 million associated with the review of strategic alternatives that was concluded in March 2020 and retention awards, from $25.1 million in the prior year to $9.7 million in the | ||||
n | ||||
nDecrease of $4.3 in impairment charges primarily related to impairments and associated write-downs in the prior year resulting from our decision to exit the Performance Coatings segment business in Argentina, which did not exist in the current year | ||||
Partially offset by: | ||||
nIncrease of $9.3 million related to expenses for acquisition activity during the current year | ||||
nIncrease of $3.9 million in the current year as a result of a charge recorded in relation to probable liabilities for an operational matter in our Mobility Coatings segment discussed further in Note | ||||
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Research and development expenses | $ | 15.8 | $ | 11.2 | $ | 4.6 | 41.1 | % | $ | 31.4 | $ | 27.8 | $ | 3.6 | 12.9 | % |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Research and development expenses | $ | 15.4 | $ | 13.4 | $ | 2.0 | 14.9 | % | $ | 46.8 | $ | 41.2 | $ | 5.6 | 13.6 | % |
Research and development expenses increased due to the following: | ||
n Increase in | ||
Research and development expenses increased due to the following: | ||
n Increase in | ||
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | $ | 29.3 | $ | 27.9 | $ | 1.4 | 5.0 | % | $ | 58.3 | $ | 55.9 | $ | 2.4 | 4.3 | % |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | $ | 29.8 | $ | 28.6 | $ | 1.2 | 4.2 | % | $ | 88.1 | $ | 84.5 | $ | 3.6 | 4.3 | % |
Amortization of acquired intangibles increased due to the following: | ||
n Amortization related to intangible assets acquired in our recent acquisitions | ||
n Unfavorable impacts of foreign currency translation, primarily related to fluctuations of the Euro compared to the U.S. dollar |
Amortization of acquired intangibles increased due to the following: | ||
n Amortization related to intangible assets acquired in our recent acquisitions | ||
n Unfavorable impacts of foreign currency translation, primarily related to fluctuations of the Euro compared to the U.S. dollar |
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | $ | 33.4 | $ | 36.1 | $ | (2.7) | (7.5) | % | $ | 66.9 | $ | 72.6 | $ | (5.7) | (7.9) | % | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | $ | 33.8 | $ | 39.8 | $ | (6.0) | (15.1) | % | $ | 100.7 | $ | 112.4 | $ | (11.7) | (10.4) | % | ||||||||||||||||||||||||||||||||||
Interest expense, net decreased primarily due to the following: | ||
n Decrease in variable and fixed interest rates due to LIBOR decreases on our variable rate debt over the comparable period and benefits on our fixed rate debt obtained during our debt refinancing activity in November 2020 | ||
n | ||
Interest expense, net decreased primarily due to the following: | ||
n Decrease in variable and fixed interest rates due to LIBOR decreases on our variable rate debt over the comparable period and benefits on our fixed rate debt obtained during our debt refinancing activity in November 2020 | ||
Partially offset by: | ||
n Unfavorable impacts of our derivative instruments used to hedge the variable interest rate exposure on certain debt arrangements | ||
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Other income, net | $ | (8.1) | $ | (2.2) | $ | (5.9) | 268.2 | % | $ | (8.5) | $ | (1.4) | $ | (7.1) | 507.1 | % |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | $ | (2.4) | $ | 2.3 | $ | (4.7) | 204.3 | % | $ | (10.9) | $ | 0.9 | $ | (11.8) | (1,311.1) | % |
Other | ||
n | ||
Partially offset by: | ||
n |
Other | ||
n Income of $8.3 million recorded in 2021 related to a law change with respect to certain Brazilian indirect taxes | ||
n Reduction in debt extinguishment and refinancing related costs of $2.2 million | ||
n | ||
Partially offset by: | ||
n A net benefit of $2.5 million during the prior period as a result of pension curtailment and settlements released from accumulated other comprehensive loss, partially offset by special termination benefits, which does not exist in the current year |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 165.1 | $ | (98.4) | $ | 184.6 | $ | (70.6) | ||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | $ | 93.3 | $ | 99.6 | $ | 277.9 | $ | 29.0 | |||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | Provision (benefit) for income taxes | 38.7 | (15.2) | 42.5 | (39.8) | Provision (benefit) for income taxes | 24.4 | 17.1 | 66.9 | (22.7) | ||||||||||||||||||||||||||||||||||||||||||
Statutory U.S. Federal income tax rate | Statutory U.S. Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | Statutory U.S. Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||||||||||||||||||||||
Effective tax rate | Effective tax rate | 23.4 | % | 15.4 | % | 23.0 | % | 56.4 | % | Effective tax rate | 26.2 | % | 17.2 | % | 24.1 | % | (78.3) | % | ||||||||||||||||||||||||||||||||||
Effective tax rate vs. statutory U.S. Federal income tax rate | Effective tax rate vs. statutory U.S. Federal income tax rate | 2.4 | % | (5.6) | % | 2.0 | % | 35.4 | % | Effective tax rate vs. statutory U.S. Federal income tax rate | 5.2 | % | (3.8) | % | 3.1 | % | (99.3) | % |
(Favorable) Unfavorable Impact | (Favorable) Unfavorable Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
Items impacting the effective tax rate vs. statutory U.S. federal income tax rate | Items impacting the effective tax rate vs. statutory U.S. federal income tax rate | 2021 | 2020 | 2021 | 2020 | Items impacting the effective tax rate vs. statutory U.S. federal income tax rate | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||
Earnings generated in jurisdictions where the statutory rate is different from the U.S. Federal rate (1) | Earnings generated in jurisdictions where the statutory rate is different from the U.S. Federal rate (1) | $ | (2.3) | $ | (1.6) | $ | (7.0) | $ | (5.9) | Earnings generated in jurisdictions where the statutory rate is different from the U.S. Federal rate (1) | $ | (3.7) | $ | (7.0) | $ | (10.7) | $ | (12.9) | ||||||||||||||||||||||||||||||||||
Changes in valuation allowance | Changes in valuation allowance | 5.4 | 2.1 | 12.4 | (2.4) | Changes in valuation allowance | 4.7 | (1.1) | 17.2 | (3.5) | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange gain (loss), net | Foreign exchange gain (loss), net | 1.0 | — | (0.6) | 8.5 | Foreign exchange gain (loss), net | (0.6) | 2.1 | (1.2) | 10.6 | ||||||||||||||||||||||||||||||||||||||||||
Non-deductible expenses and interest | Non-deductible expenses and interest | 1.3 | 1.8 | 2.1 | 3.1 | Non-deductible expenses and interest | 2.1 | 0.9 | 4.2 | 4.0 | ||||||||||||||||||||||||||||||||||||||||||
Increase in unrecognized tax benefits(2) | Increase in unrecognized tax benefits(2) | 1.4 | 1.4 | 3.7 | 19.3 | Increase in unrecognized tax benefits(2) | 1.8 | 1.8 | 5.5 | 21.1 | ||||||||||||||||||||||||||||||||||||||||||
Intra-entity asset transfer (3) | Intra-entity asset transfer (3) | — | — | — | (50.5) | Intra-entity asset transfer (3) | — | — | — | (50.5) | ||||||||||||||||||||||||||||||||||||||||||
Foreign taxes | Foreign taxes | 1.9 | 1.9 | 3.3 | 3.5 | Foreign taxes | 1.2 | 0.9 | 4.5 | 4.4 |
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 805.8 | $ | 482.1 | $ | 323.7 | 67.1 | % | $ | 1,513.1 | $ | 1,129.8 | $ | 383.3 | 33.9 | % | Net sales | $ | 779.2 | $ | 682.7 | $ | 96.5 | 14.1 | % | $ | 2,292.3 | $ | 1,812.5 | $ | 479.8 | 26.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume effect | Volume effect | 45.5 | % | 23.0 | % | Volume effect | 5.2 | % | 16.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of acquisitions | Impact of acquisitions | 2.1 | % | 0.9 | % | Impact of acquisitions | 2.7 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price/Mix effect | Price/Mix effect | 14.0 | % | 5.3 | % | Price/Mix effect | 5.0 | % | 5.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate effect | Exchange rate effect | 5.5 | % | 4.7 | % | Exchange rate effect | 1.2 | % | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT | Adjusted EBIT | $ | 139.7 | $ | 1.5 | $ | 138.2 | 9,213.3 | % | $ | 256.9 | $ | 80.9 | $ | 176.0 | 217.6 | % | Adjusted EBIT | $ | 122.8 | $ | 133.9 | $ | (11.1) | (8.3) | % | $ | 379.7 | $ | 214.8 | $ | 164.9 | 76.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT Margin | Adjusted EBIT Margin | 17.3 | % | 0.3 | % | 17.0 | % | 7.2 | % | Adjusted EBIT Margin | 15.8 | % | 19.6 | % | 16.6 | % | 11.9 | % |
Net sales increased due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 | ||
n Higher average selling prices and product mix across both end-markets, driven by price actions within both end-markets to offset raw material inflation | ||
n Favorable impact from acquisitions closed during 2021 | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar |
Adjusted EBIT decreased due to the following: | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
Partially offset by: | ||
n Higher average selling prices and product mix across both end-markets and most regions | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 | ||
Adjusted EBIT margins decreased during the three months ended September 30, 2021 due to the following: | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
Partially offset by: | ||
n Higher average selling prices and product mix across both end-markets and most regions | ||
Net sales increased due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 | ||
n Higher average selling prices and product mix across both end-markets, driven by price actions within both end-markets and improved product mix in Refinish North America | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
n Favorable impact from acquisitions closed during 2021 | ||
Adjusted EBIT increased due to the following: | ||
n Higher sales volumes across both end-markets | ||
n Lower manufacturing expenses of $14.3 million compared to the prior year as a result of underutilized manufacturing assets in the prior year | ||
n Higher average selling prices and product mix across both end-markets and most regions | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro, Chinese Renminbi, and Canadian Dollar compared to the U.S. dollar | ||
Partially offset by: | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
Adjusted EBIT margins increased during the | ||
n Higher sales volumes across both end-markets | ||
n Lower manufacturing expenses of $14.3 million compared to the prior year as a result of underutilized manufacturing assets in the prior year | ||
n Higher average selling prices and product mix across both end-markets, driven by price actions within both end-markets and improved product mix in Refinish North America | ||
Partially offset by: | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
Three Months Ended June 30, | 2021 vs 2020 | Six Months Ended June 30, | 2021 vs 2020 | Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 321.0 | $ | 170.6 | $ | 150.4 | 88.2 | % | $ | 677.3 | $ | 506.4 | $ | 170.9 | 33.7 | % | Net sales | $ | 309.4 | $ | 344.2 | $ | (34.8) | (10.1) | % | $ | 986.7 | $ | 850.6 | $ | 136.1 | 16.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume effect | Volume effect | 87.4 | % | 30.5 | % | Volume effect | (15.2) | % | 12.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price/Mix effect | Price/Mix effect | (4.1) | % | 0.7 | % | Price/Mix effect | 3.6 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate effect | Exchange rate effect | 4.9 | % | 2.5 | % | Exchange rate effect | 1.5 | % | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT | Adjusted EBIT | $ | 5.7 | $ | (39.3) | $ | 45.0 | 114.5 | % | $ | 44.9 | $ | (13.5) | $ | 58.4 | 432.6 | % | Adjusted EBIT | $ | (2.7) | $ | 48.5 | $ | (51.2) | (105.6) | % | $ | 42.2 | $ | 35.0 | $ | 7.2 | (20.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT Margin | Adjusted EBIT Margin | 1.8 | % | (23.0) | % | 6.6 | % | (2.7) | % | Adjusted EBIT Margin | (0.9) | % | 14.1 | % | 4.3 | % | 4.1 | % |
Net sales decreased due to the following: | ||
n Lower sales volumes driven by Light Vehicle as a result of customer production limitations due to semiconductor chip and other supply chain shortages | ||
Partially offset by: | ||
n Higher average selling prices and product mix across both end-markets and most regions driven by price actions | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Chinese Renminbi, Brazilian Real and Euro compared to the U.S. dollar |
Adjusted EBIT decreased due to the following: | ||
n Lower sales volumes driven by Light Vehicle as a result of customer production limitations due to semiconductor chip and other supply chain shortages | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
Partially offset by: | ||
n Higher average selling prices and product mix driven by driven by price actions in Light Vehicle | ||
Adjusted EBIT margins decreased during the three months ended September 30, 2021 due to the following: | ||
n Lower sales volumes to cover fixed costs | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives |
Net sales increased due to the following: | ||
n Higher sales volumes across both end-markets | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
n |
Adjusted EBIT increased due to the following: | ||
n Higher sales volumes across both end-markets | ||
n Higher average selling price and product mix driven by price actions | ||
n Lower manufacturing expenses of $20.9 million compared to the prior year as a result of underutilized manufacturing assets in the prior year | ||
Partially offset by: | ||
n Higher variable input costs due to raw material inflation |
n Higher sales volumes across both end-markets | ||
n |
n Lower manufacturing expenses of $20.9 million compared to the prior year as a result of underutilized manufacturing assets in the prior year | ||
n Higher variable input costs due to raw material inflation |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(In millions) | (In millions) | 2021 | 2020 | (In millions) | 2021 | 2020 | ||||||||||||||||||||||
Net cash provided by (used for): | Net cash provided by (used for): | Net cash provided by (used for): | ||||||||||||||||||||||||||
Operating activities: | Operating activities: | Operating activities: | ||||||||||||||||||||||||||
Net income (loss) | $ | 142.1 | $ | (30.8) | ||||||||||||||||||||||||
Net income | Net income | $ | 211.0 | $ | 51.7 | |||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 155.4 | 163.2 | Depreciation and amortization | 234.7 | 243.6 | ||||||||||||||||||||||
Amortization of deferred financing costs and original issue discount | Amortization of deferred financing costs and original issue discount | 4.2 | 4.1 | Amortization of deferred financing costs and original issue discount | 6.7 | 6.8 | ||||||||||||||||||||||
Debt extinguishment and refinancing related costs | 0.2 | 2.4 | ||||||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | 5.2 | (61.2) | Deferred income taxes | 9.3 | (57.2) | ||||||||||||||||||||||
Realized and unrealized foreign exchange losses, net | Realized and unrealized foreign exchange losses, net | 9.4 | 2.8 | Realized and unrealized foreign exchange losses, net | 9.5 | 12.7 | ||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | 7.8 | 11.2 | Stock-based compensation | 11.7 | 15.9 | ||||||||||||||||||||||
Divestiture and impairment charges | — | 3.2 | ||||||||||||||||||||||||||
Gain on sale of facility | Gain on sale of facility | (8.9) | — | |||||||||||||||||||||||||
Interest income on swaps designated as net investment hedges | Interest income on swaps designated as net investment hedges | (7.1) | (7.3) | Interest income on swaps designated as net investment hedges | (14.3) | (11.0) | ||||||||||||||||||||||
Other non-cash, net | Other non-cash, net | 9.2 | 8.3 | Other non-cash, net | 11.3 | 8.6 | ||||||||||||||||||||||
Net income adjusted for non-cash items | Net income adjusted for non-cash items | 326.4 | 95.9 | Net income adjusted for non-cash items | 471.0 | 271.1 | ||||||||||||||||||||||
Changes in operating assets and liabilities | Changes in operating assets and liabilities | (179.3) | (98.4) | Changes in operating assets and liabilities | (181.0) | (40.2) | ||||||||||||||||||||||
Operating activities | Operating activities | 147.1 | (2.5) | Operating activities | 290.0 | 230.9 | ||||||||||||||||||||||
Investing activities | Investing activities | (91.3) | (34.3) | Investing activities | (719.9) | (39.3) | ||||||||||||||||||||||
Financing activities | Financing activities | (169.9) | 159.1 | Financing activities | (279.5) | 136.8 | ||||||||||||||||||||||
Effect of exchange rate changes on cash | Effect of exchange rate changes on cash | (8.4) | (16.3) | Effect of exchange rate changes on cash | (16.5) | (4.7) | ||||||||||||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (122.5) | $ | 106.0 | Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (725.9) | $ | 323.7 |
(In millions) | (In millions) | June 30, 2021 | December 31, 2020 | (In millions) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
2024 Dollar Term Loans | 2024 Dollar Term Loans | $ | 2,051.0 | $ | 2,063.2 | 2024 Dollar Term Loans | $ | 2,045.0 | $ | 2,063.2 | ||||||||||||||||||
2025 Euro Senior Notes | 2025 Euro Senior Notes | 535.8 | 552.1 | 2025 Euro Senior Notes | 525.2 | 552.1 | ||||||||||||||||||||||
2027 Dollar Senior Notes | 2027 Dollar Senior Notes | 500.0 | 500.0 | 2027 Dollar Senior Notes | 500.0 | 500.0 | ||||||||||||||||||||||
2029 Dollar Senior Notes | 2029 Dollar Senior Notes | 700.0 | 700.0 | 2029 Dollar Senior Notes | 700.0 | 700.0 | ||||||||||||||||||||||
Short-term and other borrowings | Short-term and other borrowings | 103.0 | 118.0 | Short-term and other borrowings | 106.4 | 118.0 | ||||||||||||||||||||||
Unamortized original issue discount | Unamortized original issue discount | (5.5) | (6.3) | Unamortized original issue discount | (5.1) | (6.3) | ||||||||||||||||||||||
Unamortized deferred financing costs | Unamortized deferred financing costs | (30.4) | (34.3) | Unamortized deferred financing costs | (29.0) | (34.3) | ||||||||||||||||||||||
Total borrowings, net | Total borrowings, net | 3,853.9 | 3,892.7 | Total borrowings, net | 3,842.5 | 3,892.7 | ||||||||||||||||||||||
Less: | Less: | Less: | ||||||||||||||||||||||||||
Short-term borrowings | Short-term borrowings | 16.2 | 29.9 | Short-term borrowings | 19.0 | 29.9 | ||||||||||||||||||||||
Current portion of long-term borrowings | Current portion of long-term borrowings | 24.3 | 24.3 | Current portion of long-term borrowings | 24.3 | 24.3 | ||||||||||||||||||||||
Long-term debt | Long-term debt | $ | 3,813.4 | $ | 3,838.5 | Long-term debt | $ | 3,799.2 | $ | 3,838.5 |
(in millions, except per share data) | (in millions, except per share data) | (in millions, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Month | Month | Total Number of Shares Purchased(1) | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Programs(1) | Approximate Dollar Value of Shares That May Yet Be Purchased Under Our Share Repurchase Program(1)(2) | Month | Total Number of Shares Purchased(1) | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Programs(1) | Approximate Dollar Value of Shares That May Yet Be Purchased Under Our Share Repurchase Program(1)(2) | ||||||||||||||||||||||||||||||||||||||||||
April 2021 | — | $ | — | — | $ | 797.5 | ||||||||||||||||||||||||||||||||||||||||||||||
May 2021 | 0.5 | 32.32 | 0.5 | 782.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
June 2021 | 1.4 | 31.54 | 1.4 | 737.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
July 2021 | July 2021 | 1.4 | $ | 28.97 | 1.4 | $ | 697.5 | |||||||||||||||||||||||||||||||||||||||||||||
August 2021 | August 2021 | — | — | — | 697.5 | |||||||||||||||||||||||||||||||||||||||||||||||
September 2021 | September 2021 | 1.7 | 29.09 | 1.7 | 647.4 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 1.9 | $ | 31.73 | 1.9 | $ | 737.5 | Total | 3.1 | $ | 29.04 | 3.1 | $ | 647.4 |
EXHIBIT NO. | DESCRIPTION OF EXHIBITS | ||||
2.2* | |||||
31.1 | |||||
31.2 | |||||
32.1† | |||||
32.2† | |||||
101 | INS - Inline XBRL Instance Document. The document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | ||||
101 | SCH - Inline XBRL Taxonomy Extension Schema Document | ||||
101 | CAL - Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101 | DEF - Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101 | LAB - Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101 | PRE - Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
* | |||||
† | This certificate is being furnished solely to accompany the report pursuant to 18 U.S.C. Section 1350 and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. |
AXALTA COATING SYSTEMS LTD. | |||||||||||
Date: | By: /s/ Robert W. Bryant | ||||||||||
Robert W. Bryant | |||||||||||
Chief Executive Officer and President | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | By: /s/ Sean M. Lannon | ||||||||||
Sean M. Lannon | |||||||||||
Senior Vice President and Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
Date: | By: /s/ Anthony Massey | ||||||||||
Anthony Massey | |||||||||||
Vice President and Global Controller | |||||||||||
(Principal Accounting Officer) |