Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Axalta Coating Systems Ltd. | |
Trading Symbol | AXTA | |
Entity Central Index Key | 1616862 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 229,861,218 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net sales | $989.20 | $1,047.40 |
Other revenue | 8.3 | 7 |
Total revenue | 997.5 | 1,054.40 |
Cost of goods sold | 649.8 | 703.5 |
Selling, general and administrative expenses | 213 | 246.7 |
Research and development expenses | 12.9 | 11.3 |
Amortization of acquired intangibles | 20 | 21.1 |
Income from operations | 101.8 | 71.8 |
Interest expense, net | 50 | 59 |
Other expense, net | 3.9 | 4.5 |
Income before income taxes | 47.9 | 8.3 |
Provision for income taxes | 1.2 | 12 |
Net income (loss) | 46.7 | -3.7 |
Less: Net income attributable to noncontrolling interests | 1.6 | 0.6 |
Net income (loss) attributable to controlling interests | $45.10 | ($4.30) |
Basic net income (loss) per share (dollars per share) | $0.20 | ($0.02) |
Diluted net income (loss) per share (dollars per share) | $0.19 | ($0.02) |
Basic weighted average shares outstanding | 229.8 | 229.1 |
Diluted weighted average shares outstanding | 237 | 229.1 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $46.70 | ($3.70) |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | -109.6 | -7.5 |
Unrealized gain (loss) on securities | 0.5 | -0.2 |
Unrealized gain (loss) on derivatives | -4.8 | 0.5 |
Unrealized gain (loss) on pension and other benefit plan obligations | -1.2 | 5.5 |
Other comprehensive loss, before tax | -115.1 | -1.7 |
Income tax benefit (provision) related to items of other comprehensive income | 2.6 | -1.3 |
Other comprehensive loss, net of tax | -112.5 | -3 |
Comprehensive loss | -65.8 | -6.7 |
Less: Comprehensive income attributable to noncontrolling interests | 1.2 | 0.6 |
Comprehensive loss attributable to controlling interests | ($67) | ($7.30) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $222.90 | $382.10 |
Restricted cash | 2.8 | 4.7 |
Accounts and notes receivable, net | 833 | 820.4 |
Inventories | 541.3 | 538.3 |
Prepaid expenses and other | 82.6 | 62.9 |
Deferred income taxes | 68.2 | 64.5 |
Total current assets | 1,750.80 | 1,872.90 |
Property, plant and equipment, net | 1,411.70 | 1,514.10 |
Goodwill | 916.8 | 1,001.10 |
Identifiable intangibles, net | 1,246.80 | 1,300 |
Deferred financing costs, net | 86.8 | 91 |
Other assets | 485.5 | 473.7 |
Total assets | 5,898.40 | 6,252.80 |
Current liabilities: | ||
Accounts payable | 458.3 | 494.5 |
Current portion of borrowings | 41.6 | 40.1 |
Deferred income taxes | 6.4 | 7.3 |
Other accrued liabilities | 291.7 | 404.8 |
Total current liabilities | 798 | 946.7 |
Long-term borrowings | 3,566.70 | 3,656.30 |
Accrued pensions and other long-term employee benefits | 272.6 | 306.4 |
Deferred income taxes | 190.6 | 208.2 |
Other liabilities | 22.3 | 23.2 |
Total liabilities | 4,850.20 | 5,140.80 |
Commitments and contingent liabilities | ||
Shareholders’ equity | ||
Common shares, $1.00 par, 1,000.0 shares authorized, 229.8 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 229.8 | 229.8 |
Capital in excess of par | 1,145.90 | 1,144.70 |
Accumulated deficit | -181.4 | -226.5 |
Accumulated other comprehensive loss | -215.4 | -103.3 |
Total Axalta shareholders’ equity | 978.9 | 1,044.70 |
Noncontrolling interests | 69.3 | 67.3 |
Total shareholders’ equity | 1,048.20 | 1,112 |
Total liabilities and shareholders’ equity | $5,898.40 | $6,252.80 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $1 | $1 |
Common shares, shares authorized | 1,000 | 1,000 |
Common shares, shares issued | 229.8 | 229.8 |
Common shares, shares outstanding | 229.8 | 229.8 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income | $46.70 | ($3.70) |
Adjustment to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 72.6 | 81.1 |
Amortization of financing costs and original issue discount | 5 | 5.2 |
Debt modification costs | 0 | 3.1 |
Deferred income taxes | -17.2 | -15.1 |
Unrealized loss on derivatives | 1.2 | 3.1 |
Realized and unrealized foreign exchange losses, net | 4.8 | 3.4 |
Stock-based compensation | 1.8 | 1.8 |
Other non-cash, net | -1.1 | -4.9 |
Decrease (increase) in operating assets and liabilities: | ||
Trade accounts and notes receivable | -53.5 | -65.3 |
Inventories | -25.9 | -28.3 |
Prepaid expenses and other assets | -36.3 | 1.9 |
Accounts payable | -1 | 29.3 |
Other accrued liabilities | -91.1 | -76.9 |
Other liabilities | -4.7 | -1.9 |
Cash used for operating activities | -98.7 | -67.2 |
Investing activities: | ||
Acquisition of controlling interest in investment affiliate (net of cash acquired) | -3.2 | 0 |
Purchase of property, plant and equipment | -31.5 | -50.2 |
Restricted cash | 1.8 | -2 |
Purchase of intangibles | 0 | -0.2 |
Proceeds from Sale of Intangible Assets | 0.4 | 0 |
Proceeds from sale of affiliate | 2.3 | 0 |
Cash used for investing activities | -30.2 | -52.4 |
Financing activities: | ||
Proceeds from short-term borrowings | 1.5 | 16.7 |
Payments on short-term borrowings | -10.7 | -9.6 |
Payments on long-term debt | -6.8 | 0 |
Dividends paid to noncontrolling interests | -3.5 | -0.9 |
Debt modification fees | 0 | -3 |
Other financing activities | -0.2 | 0 |
Cash provided by (used for) financing activities | -19.7 | 3.2 |
Decrease in cash and cash equivalents | -148.6 | -116.4 |
Effect of exchange rate changes on cash | -10.6 | -3.3 |
Cash and cash equivalents at beginning of period | 382.1 | 459.3 |
Cash and cash equivalents at end of period | $222.90 | $339.60 |
Basis_of_Presentation_of_the_C
Basis of Presentation of the Condensed Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation of the Condensed Consolidated Financial Statements | BASIS OF PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at March 31, 2015 and December 31, 2014, the results of operations and comprehensive income (loss) for the three months ended March 31, 2015 and 2014, and their cash flows for the three months then ended. All intercompany balances and transactions have been eliminated. These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated and combined financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. | |
The accompanying financial statements include the interim unaudited condensed consolidated balance sheets of Axalta at March 31, 2015 and December 31, 2014, the related interim unaudited condensed consolidated statements of operations and statements of comprehensive income (loss) for the three months ended March 31, 2015 and 2014 and of cash flows for the three months ended March 31, 2015 and 2014. The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. | |
The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for a full year. | |
The acquisition ("Acquisition") by Axalta and certain of its indirect subsidiaries of all the capital stock, other equity interests and assets of certain entities which, together with their subsidiaries, comprised the assets and legal entities, which together with their subsidiaries, compromised the DuPont Performance Coatings business ("DPC"), which was formerly owned by E. I. du Pont de Nemours and Company ("DuPont"), closed on February 1, 2013. | |
On November 11, 2014, we priced our initial public offering (the "Offering", or the "IPO"), in which certain selling shareholders affiliated with Carlyle sold 57,500,000 common shares at a price of $19.50 per share. We received no proceeds from the Offering. | |
Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material. | |
Reclassification and revisions | |
During 2014, the Company identified errors in the determination of the effective interest rate amortization for the Deferred Financing Costs and Original Issue Discounts that were incurred in 2013. The correction of these items impacted the interim unaudited condensed consolidated statements of operations and statements of comprehensive income (loss) for the three months ended March 31, 2014. Refer to Note 15 for further details. |
Recent_Accounting_Guidance
Recent Accounting Guidance | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Recent Accounting Guidance | RECENT ACCOUNTING GUIDANCE |
Accounting Guidance Issued But Not Yet Adopted | |
In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs", which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We intend to early adopt this new guidance beginning in the second quarter of 2015. The impacts to the balance sheets at March 31, 2015 and December 31, 2014 would have been corresponding decreases to both total assets and total liabilities of $86.8 million and $91.0 million, respectively. | |
In February 2015, the FASB issued ASU 2015-02 (Accounting Standard Codification 810), "Consolidation", which sets forth guidance on accounting for consolidation of certain legal entities. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Although early adoption is permitted, we are still in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows. | |
In May 2014, the FASB issued ASU 2014-09 (Accounting Standard Codification 606), "Revenue from Contracts with Customers", which sets forth the guidance that an entity should use related to revenue recognition. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is not permitted. In April 2015 the FASB proposed a one-year delay in the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and proposed that companies would be allowed to early adopt the guidance as of the original effective date. We are in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows. |
Goodwill_and_Identifiable_Inta
Goodwill and Identifiable Intangible Assets | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Goodwill and Identifiable Intangible Assets | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | ||||||||||
Goodwill | |||||||||||
The following table shows changes in the carrying amount of goodwill from December 31, 2014 to March 31, 2015 by reportable segment: | |||||||||||
Performance | Transportation | Total | |||||||||
Coatings | Coatings | ||||||||||
At December 31, 2014 | $ | 933.6 | $ | 67.5 | 1,001.10 | ||||||
Goodwill from acquisition | 12.5 | — | 12.5 | ||||||||
Foreign currency translation | (90.3 | ) | (6.5 | ) | (96.8 | ) | |||||
31-Mar-15 | $ | 855.8 | $ | 61 | $ | 916.8 | |||||
In March 2015, we purchased an additional 25% interest in a previously held equity method investment. See Note 9 for additional information. | |||||||||||
Identifiable Intangible Assets | |||||||||||
The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: | |||||||||||
31-Mar-15 | Gross Carrying | Accumulated | Net Book | Weighted average | |||||||
Amount | Amortization | Value | amortization periods (years) | ||||||||
Technology | $ | 411.8 | $ | (86.5 | ) | $ | 325.3 | 10 | |||
Trademarks - indefinite-lived | 284.4 | — | 284.4 | Indefinite | |||||||
Trademarks - definite-lived | 41.9 | (6.2 | ) | 35.7 | 14.8 | ||||||
Customer relationships | 676.9 | (76.5 | ) | 600.4 | 19.4 | ||||||
Non-compete agreements | 1.9 | (0.9 | ) | 1 | 4.6 | ||||||
Total | $ | 1,416.90 | $ | (170.1 | ) | $ | 1,246.80 | ||||
31-Dec-14 | Gross Carrying | Accumulated | Net Book | Weighted average | |||||||
Amount | Amortization | Value | amortization periods (years) | ||||||||
Technology | $ | 411.8 | $ | (76.3 | ) | $ | 335.5 | 10 | |||
Trademarks—indefinite-lived | 284.4 | — | 284.4 | Indefinite | |||||||
Trademarks—definite-lived | 41.8 | (5.5 | ) | 36.3 | 14.8 | ||||||
Customer relationships | 713.9 | (71.3 | ) | 642.6 | 19.4 | ||||||
Non-compete agreements | 2 | (0.8 | ) | 1.2 | 4.6 | ||||||
Total | $ | 1,453.90 | $ | (153.9 | ) | $ | 1,300.00 | ||||
Activity related to in process research and development projects for the three months ended March 31, 2015 was: | |||||||||||
In Process Research and Development | Activity | ||||||||||
Balance at December 31, 2014 | $ | 5.2 | |||||||||
Completed | (1.5 | ) | |||||||||
Abandoned | — | ||||||||||
Balance at March 31, 2015 | $ | 3.7 | |||||||||
For the three months ended March 31, 2015 and 2014, amortization expense for acquired intangibles was $20.0 million and $21.1 million, respectively. | |||||||||||
The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2015 and each of the succeeding four years is: | |||||||||||
Remainder of 2015 | $ | 59.7 | |||||||||
2016 | $ | 79.6 | |||||||||
2017 | $ | 79.2 | |||||||||
2018 | $ | 79.2 | |||||||||
2019 | $ | 79.2 | |||||||||
Restructuring
Restructuring | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring | RESTRUCTURING | |||
In accordance with the applicable guidance for Nonretirement Postemployment Benefits, we accounted for termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated. | ||||
We have incurred costs associated with involuntary termination benefits associated with corporate-related initiatives associated with our transition and cost-saving opportunities related to the separation from DuPont and our Axalta Way initiatives. During the three months ended March 31, 2015 and 2014 we incurred restructuring costs of $2.2 million and $0.1 million, respectively. These amounts are recorded within selling, general and administrative expenses in the interim unaudited condensed consolidated statements of operations. The payments associated with these actions are expected to be completed by December 2015. | ||||
The following table summarizes the activities related to the restructuring reserves, recorded within other accrued liabilities, and expenses from December 31, 2014 to March 31, 2015: | ||||
2015 Activity | ||||
Balance at December 31, 2014 | $ | 48.5 | ||
Expense Recorded | 2.2 | |||
Payments Made | (14.0 | ) | ||
Foreign Currency Changes | (5.0 | ) | ||
Balance at March 31, 2015 | $ | 31.7 | ||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
Guarantees | |
We directly guarantee certain obligations under agreements with third parties. At March 31, 2015 and December 31, 2014, we had directly guaranteed $2.1 million and $2.2 million of such obligations, respectively. These guarantees represent the maximum potential amount of future (undiscounted) payments that we could be required to make under the guarantees in the event of default by the guaranteed parties. No amounts were accrued at March 31, 2015 and December 31, 2014. | |
Other | |
We are subject to various pending lawsuits and other claims including civil, regulatory, and environmental matters. Certain of these lawsuits and other claims may have an impact on us. These litigation matters may involve indemnification obligations by third parties and/or insurance coverage covering all or part of any potential damage awards against DuPont and/or us. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time. | |
The potential effects, if any, on the unaudited condensed consolidated financial statements of Axalta will be recorded in the period in which these matters are probable and estimable, and such effects, could be material. | |
In addition to the aforementioned matters, we are party to various legal proceedings in the ordinary course of business. Although the ultimate resolution of these various proceedings cannot be determined at this time, management does not believe that such proceedings, individually or in the aggregate, will have a material adverse effect on the unaudited condensed consolidated financial statements of Axalta. |
Longterm_Employee_Benefits
Long-term Employee Benefits | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Compensation and Retirement Disclosure [Abstract] | |||||||
Long-term Employee Benefits | LONG-TERM EMPLOYEE BENEFITS | ||||||
Components of Net Periodic Benefit Cost | |||||||
The following table sets forth the components of net periodic benefit (gain) cost for the three months ended March 31, 2015 and 2014. | |||||||
Pension Benefits | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Components of net periodic benefit cost: | |||||||
Net periodic benefit cost: | |||||||
Service cost | $ | 3.1 | $ | 4.6 | |||
Interest cost | 4.6 | 6 | |||||
Expected return on plan assets | (3.7 | ) | (3.7 | ) | |||
Amortization of actuarial (gain) loss, net | 0.3 | (0.1 | ) | ||||
Amortization of prior service credit, net | (0.1 | ) | — | ||||
Net periodic benefit cost | $ | 4.2 | $ | 6.8 | |||
Other Long-Term Employee Benefits | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Components of net periodic benefit (gain) cost: | |||||||
Net periodic benefit (gain) cost: | |||||||
Service cost | $ | — | $ | — | |||
Interest cost | — | 0.1 | |||||
Amortization of prior service credit | (0.9 | ) | — | ||||
Net periodic benefit (gain) cost | $ | (0.9 | ) | $ | 0.1 | ||
Significant Events | |||||||
During the three months ended March 31, 2014, the Company amended one of our Non-U.S. defined benefit pension plans. The amendment effectively eliminated the accrual of future benefits for all participants as of March 31, 2014, resulting in a curtailment gain of $5.6 million. As the plan had unrealized losses in excess of the reduction of the projected benefit obligation at the date of amendment, the gain was recorded as a reduction of the projected benefit obligation and a corresponding reduction of unrealized losses within Accumulated other comprehensive loss. |
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION |
During both the three months ended March 31, 2015 and 2014, we recognized $1.8 million, in stock-based compensation expense which was allocated to costs of goods sold, selling, general and administrative expenses, and research and development expenses. | |
At March 31, 2015, there was $8.6 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 3.1 years. Compensation expense is recognized for the fair values of the stock options over the requisite service period of the awards using the graded-vesting attribution method. | |
During the three months ended March 31, 2015, we granted 100,945 stock options at an exercise price of $25.49 and a fair value of $6.88 per option. These options have a ten year life and vest serially over three years. We also granted 41,430 shares of restricted stock at a fair value of $25.49. The shares vest serially over three years. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS |
Carlyle Group L.P. and its affiliates ("Carlyle") | |
We entered into a consulting agreement with Carlyle Investment Management L.L.C. ("Carlyle Investment"), an affiliate of Carlyle pursuant to which Carlyle Investment provides certain consulting services to Axalta. Under this agreement, subject to certain conditions, we were required to pay an annual consulting fee to Carlyle Investment of $3.0 million payable in equal quarterly installments and reimburse Carlyle Investment for out-pocket expenses incurred in providing the consulting services. During the three months ended March 31, 2014, we recorded expense of $0.8 million related to this consulting agreement. During the three months ended March 31, 2015, we recorded no expense as a result of the termination of the consulting agreement upon completion of the IPO in November 2014. | |
Service King Collision Repair | |
Service King Collision Repair, a portfolio company of Carlyle, has purchased products from our distributors in the past and may continue to do so in the future. During the third quarter of 2014, Carlyle sold their majority interest in Service King Collision Repair, thus making the entity no longer a related party. Related party sales prior to this transaction were $2.0 million for the three months ended March 31, 2014. |
Other_Expense_Net
Other Expense, Net | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Other Income and Expenses [Abstract] | |||||||
Other Expense, Net | OTHER EXPENSE, NET | ||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Exchange losses, net | $ | 8.7 | $ | 0.1 | |||
Management fees and expenses | — | 0.8 | |||||
Other (income) expense | (4.8 | ) | 3.6 | ||||
Total | $ | 3.9 | $ | 4.5 | |||
Our net exchange losses for the three months ended March 31, 2015 and 2014 consisted of remeasurement losses primarily related to intercompany transactions denominated in currencies different from the functional currency of the relevant subsidiary partially offset by gains on our Euro borrowings and our Venezuela operations, as discussed below. | |||||||
Based on our participation in Venezuela’s Complementary System of Foreign Currency Administration (SICAD I) auction process during the year ended December 31, 2014, we changed the exchange rate we used to remeasure our Venezuelan subsidiary’s financial statements into U.S. dollars to an exchange rate of 12.0 to 1 at December 31, 2014. We determined that the exchange rate of 12.0 to 1 remained the appropriate rate at March 31, 2015 given that we believe the equity of our Venezuelan subsidiary would be realized through a dividend utilizing the auction process through SICAD I. | |||||||
In February 2015, the Venezuelan government enacted additional changes to its foreign exchange regime. The changes maintain a three-tiered system, including the Official Rate determined by CENCOEX, which remains at 6.3 to 1, and the SICAD I auction market which continued to trade at 12.0 to 1. There was a third market, SICAD II, which has been eliminated and a new, alternative currency market, the Marginal Foreign Exchange System ("SIMADI"), has been created with a floating exchange rate generally based on supply and demand. At March 31, 2015 the exchange rate for the SIMADI market was approximately 180.0 to 1. | |||||||
At March 31, 2015, our Venezuelan subsidiary was in a net monetary asset position of $13.7 million and had non-U.S. dollar denominated net non-monetary assets of $155.7 million. We continue to assess the impact, if any, of the SIMADI exchange rate as the government of Venezuela issues regulations to implement it, but at this time it is unclear based on the current governmental policies, when considered with the foreign exchange process and other circumstances in Venezuela, whether these events will have any financial impact on the operations of our Venezuelan subsidiary. A change of our exchange rate to the SIMADI exchange rate would potentially have a material impact on our unaudited condensed consolidated financial statements. | |||||||
In March 2015, we acquired an additional 25% interest in an equity method investee for a purchase price of $4.3 million, which was previously accounted for as an equity method investment. As a result of the acquisition, we obtained a controlling interest and recognized a gain of $5.4 million on the remeasurement of our previously held equity interest as of the acquisition date. As a result of the acquisition, we consolidated the fair value of the net assets of the joint venture in our interim unaudited condensed consolidated balance sheet at March 31, 2015, with the excess of the purchase price over the net assets acquired resulting in preliminary goodwill of $12.5 million. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Income Tax Disclosure [Abstract] | |||||
Income Taxes | INCOME TAXES | ||||
Our effective income tax rates for the three months ended March 31, 2015 and March 31, 2014 are as follows: | |||||
Three Months Ended March 31, | |||||
2015 | 2014 | ||||
Effective Tax Rate | 2.5 | % | 144.6 | % | |
The lower effective tax rate for the three months ended March 31, 2015 was primarily due to the favorable impact of the tax benefits associated with currency exchange losses, which had no impact to income before taxes, and the impact of earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate of 35%. |
Earnings_Loss_Per_Common_Share
Earnings (Loss) Per Common Share | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings (Loss) Per Common Share | EARNINGS (LOSS) PER COMMON SHARE | ||||||
Basic earnings (loss) per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share includes the effect of potential dilution from the exercise of outstanding stock options and restricted shares. Potentially dilutive securities have been excluded in the weighted average number of common shares used for the calculation of earnings (loss) per share in periods of net loss because the effect of such securities would be anti-dilutive. A reconciliation of the Company’s basic and diluted earnings (loss) per common share is as follows (in millions, except earnings (loss) per share): | |||||||
Three Months Ended March 31, | |||||||
(In millions, except per share data) | 2015 | 2014 | |||||
Net income (loss) to common shareholders | $ | 45.1 | $ | (4.3 | ) | ||
Basic weighted average shares outstanding | 229.8 | 229.1 | |||||
Diluted weighted average shares outstanding | 237 | 229.1 | |||||
Earnings per Common Share: | |||||||
Basic net income (loss) per share | $ | 0.2 | $ | (0.02 | ) | ||
Diluted net income (loss) per share | $ | 0.19 | $ | (0.02 | ) | ||
The number of anti-dilutive shares that have been excluded in the computation of diluted earnings (loss) per share for the three months ended March 31, 2015 and 2014 were 0.0 million and 16.2 million, respectively. |
Accounts_and_Notes_Receivable_
Accounts and Notes Receivable, Net | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Receivables [Abstract] | |||||||
Accounts and Notes Receivable, Net | ACCOUNTS AND NOTES RECEIVABLE, NET | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
Accounts receivable—trade, net | $ | 664.1 | $ | 638.3 | |||
Notes receivable | 42.9 | 45.5 | |||||
Other | 126 | 136.6 | |||||
Total | $ | 833 | $ | 820.4 | |||
Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $9.5 million and $9.9 million at March 31, 2015 and December 31, 2014, respectively. Bad debt expense, within selling, general, and administration expenses, was $0.7 million and $1.2 million for the three months ended March 31, 2015 and 2014, respectively. |
Inventories
Inventories | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Inventory Disclosure [Abstract] | |||||||
Inventories | INVENTORIES | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
Finished products | $ | 316.3 | $ | 323.7 | |||
Semi-finished products | 87.9 | 81.3 | |||||
Raw materials and supplies | 137.1 | 133.3 | |||||
Total | $ | 541.3 | $ | 538.3 | |||
Stores and supplies inventories of $20.8 million and $20.9 million at March 31, 2015 and December 31, 2014, respectively, were valued under the weighted average cost method. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET | ||||||
Depreciation expense amounted to $41.3 million and $48.4 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Property, plant and equipment | $ | 1,776.30 | $ | 1,858.20 | |||
Accumulated depreciation | (364.6 | ) | (344.1 | ) | |||
Property, plant, and equipment, net | $ | 1,411.70 | $ | 1,514.10 | |||
Borrowings
Borrowings | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Borrowings | BORROWINGS | ||||||
Borrowings are summarized as follows: | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Dollar Term Loan | $ | 2,159.80 | $ | 2,165.50 | |||
Euro Term Loan | 425 | 481 | |||||
Dollar Senior Notes | 750 | 750 | |||||
Euro Senior Notes | 270.4 | 305.3 | |||||
Short-term borrowings | 14.3 | 12.2 | |||||
Other borrowings | 6.1 | 0.7 | |||||
Unamortized original issue discount | (17.3 | ) | (18.3 | ) | |||
$ | 3,608.30 | $ | 3,696.40 | ||||
Less: | |||||||
Short term borrowings | $ | 14.3 | $ | 12.2 | |||
Current portion of long-term borrowings | 27.3 | 27.9 | |||||
Long-term debt | $ | 3,566.70 | $ | 3,656.30 | |||
Senior Secured Credit Facilities, as amended | |||||||
On February 3, 2014, Axalta Coating Systems Dutch B B.V. ("Dutch B B.V."), as "Dutch Borrower", and its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. ("Axalta US Holdings"), as "US Borrower", executed the second amendment to the Senior Secured Credit Facilities (the "Amendment" or the "Refinancing"). The Amendment (i) converted all of the outstanding Dollar Term Loans ($2,282.8 million) into a new class of term loans (the "New Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans (€397.0 million) into a new class of term loans (the "New Euro Term Loans" and, together with the New Dollar Term Loans and the Revolving Credit Facility (as defined herein), the "Senior Secured Credit Facilities"). The New Dollar Term Loans are subject to a floor of 1.00%, plus an applicable rate after the Amendment Effective Date. The applicable rate for such New Dollar Term Loans is 3.00% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 2.00% per annum for Base Rate Loans as defined in the Credit Agreement. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans is subject to a further 25 basis point reduction if the Total Net Leverage Ratio as defined in the credit agreement governing the Senior Secured Credit Facilities is less than or equal to 4.50:1.00. The New Euro Term Loans are also subject to a floor of 1.00%, plus an applicable rate after the Amendment Effective Date. The applicable rate for such New Euro Term Loans is 3.25% per annum for Eurocurrency Rate Loans. New Euro Term Loans may not be Base Rate Loans. The applicable rate is subject to a further 25 basis point reduction if the Total Net Leverage Ratio is less than or equal to 4.50:1.00. During the third quarter of 2014, our Total Net Leverage Ratio was confirmed to be less than 4.50:1.00. Consequently, the applicable rates were changed to 2.75% for the New Dollar Term Loans and 3.00% for the New Euro Term Loans through March 31, 2015. | |||||||
The Senior Secured Credit Facilities are secured by substantially all assets of Axalta Coating Systems Dutch A B. V. ("Dutch A B.V.") and the guarantors. The Dollar Term Loan and Euro Term Loan mature on February 1, 2020 and the Revolving Credit Facility matures on February 1, 2018. Principal is paid quarterly on both the Dollar Term Loan and the Euro Term Loan based on 1% per annum of the original principal amount with the unpaid balance due at maturity. | |||||||
Interest is payable quarterly on both the New Dollar Term Loan and the New Euro Term Loan. Prior to the Amendment, interest on the Dollar Term Loan was subject to a floor of 1.25% for Eurocurrency Rate Loans plus an applicable rate of 3.50%. For Base Rate Loans, the interest was subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate, an Adjusted Eurocurrency Rate, or 2.25% plus an applicable rate of 2.50%. Interest on the Euro Term Loan, a Eurocurrency Loan, was subject to a floor of 1.25% plus an applicable rate of 4.00%. | |||||||
Under the Senior Secured Credit Facilities, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of 1.00% for Eurocurrency Rate Loans plus an applicable rate of 3.50% (subject to an additional step-down to 3.25%). For Base Rate Loans, the interest is subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate, an Adjusted Eurocurrency Rate, or 2.00% plus an applicable rate of 2.50% (subject to an additional step-down to 2.25%). | |||||||
Under circumstances described in the Credit Agreement, we may increase available revolving or term facility borrowings by up to $400.0 million plus an additional amount subject to the Company not exceeding a maximum first lien leverage ratio described in the Credit Agreement. | |||||||
Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the make-whole provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $25.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow. | |||||||
We are subject to customary negative covenants as well as a financial covenant which is a maximum First Lien Leverage Ratio. This financial covenant is applicable only when greater than 25% of the Revolving Credit Facility (including letters of credit not cash collateralized to at least 103%) is outstanding at the end of the fiscal quarter. | |||||||
Deferred financing costs of $92.9 million and original issue discounts of $25.7 million were incurred at the inception of the Senior Secured Credit Facilities. These amounts are amortized as interest expense over the life of the Senior Secured Credit Facilities. | |||||||
Amortization expense related to deferred financing costs, net for the three months ended March 31, 2015 and 2014 was $3.2 million and $3.3 million, respectively. | |||||||
Amortization expense related to original issue discounts for the three months ended March 31, 2015 and 2014 were $0.8 million and $0.9 million, respectively. | |||||||
At March 31, 2015 and December 31, 2014 there were no borrowings under the Revolving Credit Facility. At March 31, 2015 and December 31, 2014, letters of credit issued under the Revolving Credit Facility totaled $21.3 million and $15.5 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $378.7 million and $384.5 million at March 31, 2015 and December 31, 2014, respectively. | |||||||
Senior Notes | |||||||
On February 1, 2013, Dutch B B.V., as "Dutch Issuer", and Axalta US Holdings, as "US Issuer" (collectively the "Issuers") issued $750.0 million aggregate principal amount of 7.375% senior unsecured notes due 2021 (the "Dollar Senior Notes") and related guarantees thereof. Additionally, the Issuers issued €250.0 million aggregate principal amount of 5.750% senior secured notes due 2021 (the "Euro Senior Notes" and, together with the Dollar Senior Notes, the "Senior Notes") and related guarantees thereof. Cash fees related to the issuance of the Senior Notes were $33.1 million, are recorded within deferred financing costs, net and are amortized as interest expense over the life of the Senior Notes. At March 31, 2015 and December 31, 2014, the remaining unamortized balance was $24.3 million and $25.3 million, respectively. The expense related to the amortization of the deferred financing costs was $1.0 million for both of the three months ended March 31, 2015 and 2014. | |||||||
The Senior Notes are unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries. | |||||||
The indentures governing the Senior Notes contain covenants that restrict the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates. | |||||||
(i) Euro Senior Notes | |||||||
The Euro Senior Notes were sold at par and are due February 1, 2021. The Euro Senior Notes bear interest at 5.750% and are payable semi-annually on February 1 and August 1. Cash fees related to the issuance of the Euro Senior Notes were $10.2 million, are recorded within "Deferred financing costs, net" and are amortized into interest expense over the life of the Euro Senior Notes. At March 31, 2015 and December 31, 2014, the remaining unamortized balances was $7.4 million and $7.7 million, respectively. | |||||||
On or after February 1, 2016, we have the option to redeem all or part of the Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount): | |||||||
Period | Euro Notes Percentage | ||||||
2016 | 104.313 | % | |||||
2017 | 102.875 | % | |||||
2018 | 101.438 | % | |||||
2019 and thereafter | 100 | % | |||||
Notwithstanding the foregoing, at any time and from time to time prior to February 1, 2016, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the Euro Senior Notes), at a redemption price of 105.750% plus accrued and unpaid interest, if any, to the redemption date. | |||||||
In addition, we have the option to redeem up to 10% of the Euro Senior Notes during any 12-month period from issue date until February 1, 2016 at a redemption price of 103.0%, plus accrued and unpaid interest, if any, to the redemption date. | |||||||
Upon the occurrence of certain events constituting a change of control, holders of the Euro Senior Notes have the right to require us to repurchase all or any part of the Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. | |||||||
The indebtedness evidenced by the Euro Senior Notes and related guarantees is secured on a first-lien basis by the same assets that secure the obligations under the Senior Secured Credit Facilities, subject to permitted liens and applicable local law limitations, is senior in right of payment to all future subordinated indebtedness of the Issuers, is equal in right of payment to all existing and future senior indebtedness of the Issuers and is effectively senior to any unsecured indebtedness of the Issuers, including the Dollar Senior Notes, to the extent of the value securing the Euro Senior Notes. | |||||||
(ii) Dollar Senior Notes | |||||||
The Dollar Senior Notes were sold at par and are due May 1, 2021. The Dollar Senior Notes bear interest at 7.375% and are payable semi-annually on February 1 and August 1. Cash fees related to the issuance of the Dollar Senior Notes were $22.9 million, are recorded within "Deferred financing costs, net" and are amortized as interest expense over the life of the Dollar Senior Notes. At March 31, 2015 and December 31, 2014, the remaining unamortized balances was $16.9 million and $17.6 million, respectively. | |||||||
On or after February 1, 2016, we have the option to redeem all or part of the Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) | |||||||
Period | Dollar Notes Percentage | ||||||
2016 | 105.531 | % | |||||
2017 | 103.688 | % | |||||
2018 | 101.844 | % | |||||
2019 and thereafter | 100 | % | |||||
Notwithstanding the foregoing, at any time and from time to time prior to February 1, 2016, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the Dollar Senior Notes), at a redemption price of 107.375% plus accrued and unpaid interest, if any, to the redemption date. | |||||||
Upon the occurrence of certain events constituting a change of control, holders of the Dollar Senior Notes have the right to require us to repurchase all or any part of the Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. | |||||||
The indebtedness evidenced by the Dollar Senior Notes is senior unsecured indebtedness of the Issuers, is senior in right of payment to all future subordinated indebtedness of the Issuers and is equal in right of payment to all existing and future senior indebtedness of the Issuers. The Dollar Senior Notes are effectively subordinated to any secured indebtedness of the Issuers (including indebtedness of the Issuers outstanding under the Senior Secured Credit Facilities and the Euro Senior Notes) to the extent of the value of the assets securing such indebtedness. | |||||||
Future repayments | |||||||
Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2015. | |||||||
Remainder of 2015 | $ | 34.2 | |||||
2016 | 29.7 | ||||||
2017 | 29.2 | ||||||
2018 | 28.1 | ||||||
2019 | 27.3 | ||||||
Thereafter | 3,477.10 | ||||||
$ | 3,625.60 | ||||||
Reclassifications and revisions | |||||||
During 2014, the Company identified errors in the determination of the effective interest rate amortization for the Deferred Financing Costs and Original Issue Discounts that were incurred in 2013. The correction of these items impacted the condensed consolidated statement of operations and statements of comprehensive income (loss) for the three months ended March 31, 2014. The Company assessed the applicable guidance and concluded that these errors were not material to the Company’s consolidated financial statements for the aforementioned prior periods; however, the Company did conclude that correcting these prior misstatements would be significant to the three and nine-month periods ended September 30, 2014 condensed consolidated statement of operations. As a result of this analysis, the unaudited condensed consolidated financial statements at March 31, 2014 presented herein have been revised to reflect the correction of the aforementioned errors. The correction had an impact of $2.8 million on Net income (loss) and Net income (loss) attributable to controlling interests for the three months ended March 31, 2014 through a reduction in interest expense of $3.1 million (net of a tax provision of $0.3 million). |
Fair_Value_Accounting
Fair Value Accounting | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | FAIR VALUE ACCOUNTING |
Fair value of financial instruments | |
Available for sale securities - The fair value of available for sale securities was $4.5 million at both March 31, 2015 and December 31, 2014. The fair value was based upon either Level 1 inputs when the securities are actively traded with quoted market prices or Level 2 when the securities are not frequently traded. | |
Long-term borrowings - The fair values of the Dollar Senior Notes and Euro Senior Notes at March 31, 2015 were $813.8 million and $284.6 million, respectively. The fair values at December 31, 2014 were $795.0 million and $320.5 million, respectively. The estimated fair values of these notes are based on recent trades, as reported by a third party pricing service. Due to the infrequency of trades of the Dollar Senior Notes and the Euro Senior Notes, these inputs are considered to be Level 2 inputs. | |
The fair values of the New Dollar Term Loan and the New Euro Term Loan at March 31, 2015 were $2,149.0 million and $428.2 million, respectively. The fair values at December 31, 2014 were $2,100.5 million and $478.0 million, respectively. The estimated fair values of the Dollar Term Loan and the Euro Term Loan are based on recent trades, as reported by a third party pricing service. Due to the infrequency of trades of the Dollar Term Loan and the Euro Term Loan, these inputs are considered to be Level 2 inputs. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||
We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs. | ||||||||||||
During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps are in place until September 29, 2017. The interest rate swaps qualify and are designated as effective cash flow hedges. | ||||||||||||
The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in our condensed consolidated balance sheet: | ||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||
Other assets: | ||||||||||||
Interest rate swaps | $ | 0.8 | $ | 5.9 | ||||||||
Total assets | $ | 0.8 | $ | 5.9 | ||||||||
Other liabilities: | ||||||||||||
Interest rate swaps | $ | 2.5 | $ | 1.5 | ||||||||
Total liabilities | $ | 2.5 | $ | 1.5 | ||||||||
The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheet: | ||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||
Other assets: | ||||||||||||
Interest rate cap | $ | 0.1 | $ | 0.1 | ||||||||
Total assets | $ | 0.1 | $ | 0.1 | ||||||||
For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of Accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | ||||||||||||
The following tables set forth the locations and amounts recognized during the three months ended March 31, 2015 and 2014 for these cash flow hedges. | ||||||||||||
Derivatives in Cash Flow Hedging | Amount of | Location of (Gain) Loss Reclassified from | Amount of | Location of | Amount of | |||||||
Relationships in three months ended March 31, 2015: | (Gain) Loss | Accumulated OCI into Income (Effective Portion) | (Gain) Loss | (Gains) Losses | (Gain) Loss | |||||||
Recognized | Reclassified | Recognized in Income on | Recognized | |||||||||
in OCI on | from | Derivatives (Ineffective Portion) | in Income on | |||||||||
Derivatives | Accumulated | Derivatives | ||||||||||
(Effective | OCI to | (Ineffective | ||||||||||
Portion) | Income | Portion) | ||||||||||
(Effective | ||||||||||||
Portion) | ||||||||||||
Interest rate contracts | $ | 4.8 | Interest expense, net | $ | 1.6 | Interest expense, net | $ | 1.2 | ||||
Derivatives in Cash Flow Hedging | Amount of | Location of (Gain) Loss Reclassified from | Amount of | Location of | Amount of | |||||||
Relationships in three months ended March 31, 2014: | (Gain) Loss | Accumulated OCI into Income (Effective Portion) | (Gain) Loss | (Gains) Losses | (Gain) Loss | |||||||
Recognized | Reclassified | Recognized in Income on | Recognized | |||||||||
in OCI on | from | Derivatives (Ineffective Portion) | in Income on | |||||||||
Derivatives | Accumulated | Derivatives | ||||||||||
(Effective | OCI to | (Ineffective | ||||||||||
Portion) | Income | Portion) | ||||||||||
(Effective | ||||||||||||
Portion) | ||||||||||||
Interest rate contracts | $ | (0.5 | ) | Interest expense, net | $ | 1.6 | Interest expense, net | $ | 1.3 | |||
Also during the year ended December 31, 2013, we purchased a €300.0 million 1.5% interest rate cap on our Euro Term Loan that is in place until September 29, 2017. We paid a premium of $3.1 million for the interest rate cap. The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense. | ||||||||||||
Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows: | ||||||||||||
Three Months Ended March 31, | ||||||||||||
Derivatives Not Designated as Hedging | Location of (Gain) Loss Recognized in | 2015 | 2014 | |||||||||
Instruments under ASC 815 | Income on Derivatives | |||||||||||
Foreign currency forward contract | Other expense, net as a component of Exchange (gains) losses | $ | (1.8 | ) | $ | 1.2 | ||||||
Interest rate cap | Interest expense, net | — | 1.8 | |||||||||
$ | (1.8 | ) | $ | 3 | ||||||||
Segments
Segments | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Segments | SEGMENTS | |||||||||
The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information. | ||||||||||
We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines. | ||||||||||
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets within this segment are refinish and industrial. | ||||||||||
Through our Transportation Coatings segment, we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets within this segment are light vehicle and commercial vehicle. | ||||||||||
Our business serves four end-markets globally as follows: | ||||||||||
Three Months Ended March 31, | ||||||||||
2015 | 2014 | |||||||||
Performance Coatings | ||||||||||
Refinish | $ | 393.2 | $ | 435.2 | ||||||
Industrial | 164 | 180.9 | ||||||||
Total Net sales Performance Coatings | 557.2 | 616.1 | ||||||||
Transportation Coatings | ||||||||||
Light Vehicle | 333.2 | 339.6 | ||||||||
Commercial Vehicle | 98.8 | 91.7 | ||||||||
Total Net sales Transportation Coatings | 432 | 431.3 | ||||||||
Total Net sales | $ | 989.2 | $ | 1,047.40 | ||||||
Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. | ||||||||||
Performance | Transportation | Total | ||||||||
Coatings | Coatings | |||||||||
For the Three Months Ended March 31, 2015 | ||||||||||
Net sales (1) | $ | 557.2 | $ | 432 | $ | 989.2 | ||||
Equity in earnings in unconsolidated affiliates | 0.1 | 0.3 | 0.4 | |||||||
Adjusted EBITDA (2) | 107.1 | 74.9 | 182 | |||||||
Investment in unconsolidated affiliates | 4 | 6.5 | 10.5 | |||||||
Performance | Transportation | Total | ||||||||
Coatings | Coatings | |||||||||
For the Three Months Ended March 31, 2014 | ||||||||||
Net sales (1) | $ | 616.1 | $ | 431.3 | $ | 1,047.40 | ||||
Equity in earnings in unconsolidated affiliates | 0.3 | 0.3 | 0.6 | |||||||
Adjusted EBITDA (2) | 124.5 | 62.2 | 186.7 | |||||||
Investment in unconsolidated affiliates | 8 | 8.4 | 16.4 | |||||||
-1 | The Company has no intercompany sales between segments. | |||||||||
-2 | The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income (loss) before interest, taxes, depreciation and amortization and other unusual items impacting operating results. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance. Reconciliation of Adjusted EBITDA to income (loss) before income taxes follows: | |||||||||
Three Months Ended March 31, | ||||||||||
2015 | 2014 | |||||||||
Income before income taxes | $ | 47.9 | $ | 8.3 | ||||||
Interest expense, net | 50 | 59 | ||||||||
Depreciation and amortization | 72.6 | 81.1 | ||||||||
EBITDA | 170.5 | 148.4 | ||||||||
Financing costs (a) | — | 3.1 | ||||||||
Foreign exchange remeasurement losses (b) | 8.7 | 0.1 | ||||||||
Long-term employee benefit plan adjustments (c) | 0.2 | 2.3 | ||||||||
Termination benefits and other employee related costs (d) | 3.7 | 3.2 | ||||||||
Consulting and advisory fees (e) | 3.1 | 13 | ||||||||
Transition-related costs (f) | — | 13.9 | ||||||||
Secondary offering costs (g) | 1.4 | — | ||||||||
Other adjustments (h) | (2.1 | ) | 2.8 | |||||||
Dividends in respect of noncontrolling interest (i) | (3.5 | ) | (0.9 | ) | ||||||
Management fee expense (j) | — | 0.8 | ||||||||
Adjusted EBITDA | $ | 182 | $ | 186.7 | ||||||
(a) | In connection with an amendment to the Senior Secured Credit Facilities in February 2014, we recognized $3.1 million of costs during the three months ended March 31, 2014. | |||||||||
(b) | Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies. | |||||||||
(c) | Eliminates the non-service cost components of long-term employee benefit costs. | |||||||||
(d) | Represents expenses primarily related to employee termination benefits, including our initiative to improve the overall cost structure within the European region, and other employee-related costs. Termination benefits include the costs associated with our headcount initiatives associated with cost saving opportunities that were related to our transition to a standalone entity and our Axalta Way cost savings initiatives in 2015. | |||||||||
(e) | Represents fees paid to consultants, advisors, and other third-party professional organizations for professional services rendered in conjunction with the transition from DuPont to a standalone entity during 2014. Amounts incurred for the three months ended March 31, 2015 primarily relate to our Axalta Way cost savings initiatives. | |||||||||
(f) | Represents charges associated with the transition from DuPont to a standalone entity, including branding and marketing, information technology related costs, and facility transition costs. | |||||||||
(g) | Represents costs associated with the secondary offering of our common shares by Carlyle that closed in April 2015 (the "Secondary Offering"). | |||||||||
(h) | Represents costs for certain unusual or non-operational (gains) and losses, including a $5.4 million gain recognized in 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest, stock-based compensation, equity investee dividends, indemnity losses associated with the Acquisition, and loss (gain) on sale and disposal of property, plant and equipment. | |||||||||
(i) | Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned. | |||||||||
(j) | Pursuant to Axalta’s management agreement with Carlyle Investment for management and financial advisory services and oversight provided to Axalta and its subsidiaries, Axalta was required to pay an annual management fee of $3.0 million and out-of-pocket expenses. This agreement terminated upon completion of the IPO in November 2014. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Equity [Abstract] | ||||||||||
Shareholders' Equity | SHAREHOLDERS' EQUITY | |||||||||
The following tables present the change in total shareholders’ equity for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||
Total Axalta | Noncontrolling | Total | ||||||||
Interests | ||||||||||
Balance January 1, 2015 | $ | 1,044.70 | $ | 67.3 | $ | 1,112.00 | ||||
Net income | 45.1 | 1.6 | 46.7 | |||||||
Other comprehensive (loss), net of tax | (112.1 | ) | (0.4 | ) | (112.5 | ) | ||||
Exercise of stock options | (0.6 | ) | — | (0.6 | ) | |||||
Recognition of stock-based compensation | 1.8 | — | 1.8 | |||||||
Noncontrolling interests of acquired subsidiaries | — | 4.3 | 4.3 | |||||||
Dividends declared to noncontrolling interests | — | (3.5 | ) | (3.5 | ) | |||||
Balance March 31, 2015 | $ | 978.9 | $ | 69.3 | $ | 1,048.20 | ||||
Total Axalta | Noncontrolling | Total | ||||||||
Interests | ||||||||||
Balance January 1, 2014 | $ | 1,142.90 | $ | 68.9 | $ | 1,211.80 | ||||
Net income (loss) | (4.3 | ) | 0.6 | (3.7 | ) | |||||
Other comprehensive (loss), net of tax | (3.0 | ) | — | (3.0 | ) | |||||
Recognition of stock-based compensation | 1.8 | — | 1.8 | |||||||
Dividends declared to noncontrolling interests | — | (0.9 | ) | (0.9 | ) | |||||
Balance March 31, 2014 | $ | 1,137.40 | $ | 68.6 | $ | 1,206.00 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
Unrealized | Pension and | Unrealized | Unrealized | Accumulated | ||||||||||||
Currency | Other | Gain (Loss) on | Gain (Losses) on | Other | ||||||||||||
Translation | Long-term | Securities | Derivatives | Comprehensive | ||||||||||||
Adjustments | Employee | Income (loss) | ||||||||||||||
Benefit | ||||||||||||||||
Adjustments | ||||||||||||||||
December 31, 2014 | $ | (72.1 | ) | $ | (31.2 | ) | $ | (0.2 | ) | $ | 0.2 | $ | (103.3 | ) | ||
Current year deferrals to AOCI | (109.2 | ) | — | 0.5 | (1.4 | ) | (110.1 | ) | ||||||||
Reclassifications from AOCI to Net income | — | (0.4 | ) | — | (1.6 | ) | (2.0 | ) | ||||||||
Net Change | (109.2 | ) | (0.4 | ) | 0.5 | (3.0 | ) | (112.1 | ) | |||||||
March 31, 2015 | $ | (181.3 | ) | $ | (31.6 | ) | $ | 0.3 | $ | (2.8 | ) | $ | (215.4 | ) | ||
The income tax benefit related to the changes in pension and other long-term employee benefits for the three months ended March 31, 2015 was $0.8 million. The cumulative income tax benefit related to the adjustments for pension and other long-term employee benefits at March 31, 2015 was $14.1 million. The income tax benefit related to the change in the unrealized loss on derivatives for the three months ended March 31, 2015 was $1.8 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at March 31, 2015 was $1.6 million. | ||||||||||||||||
Unrealized | Pension and | Unrealized | Unrealized | Accumulated | ||||||||||||
Currency | Other | Loss on | Gain (Loss) on | Other | ||||||||||||
Translation | Long-term | Securities | Derivatives | Comprehensive | ||||||||||||
Adjustments | Employee | Income | ||||||||||||||
Benefit | ||||||||||||||||
Adjustments | ||||||||||||||||
December 31, 2013 | $ | 24.3 | $ | 7.5 | $ | (0.9 | ) | $ | 3.1 | $ | 34 | |||||
Current year deferrals to AOCI | (7.5 | ) | 4.5 | (0.2 | ) | 1.9 | (1.3 | ) | ||||||||
Reclassifications from AOCI to Net income | — | (0.1 | ) | — | (1.6 | ) | (1.7 | ) | ||||||||
Net Change | (7.5 | ) | 4.4 | (0.2 | ) | 0.3 | (3.0 | ) | ||||||||
March 31, 2014 | $ | 16.8 | $ | 11.9 | $ | (1.1 | ) | $ | 3.4 | $ | 31 | |||||
Included within reclassifications from AOCI to Net income for the three months ended March 31, 2014 was $5.6 million of curtailment gains related to an amendment to one of our pension plans. | ||||||||||||||||
The income tax expense related to the changes in pension and other long-term employee benefits for the three months ended March 31, 2014 was $1.1 million. The cumulative income tax expense related to the adjustment for pension and other long-term employee benefits at March 31, 2014 was $4.6 million. The income tax expense related to the change in the unrealized gain on derivatives for the three months ended March 31, 2014 was $0.2 million. The cumulative income tax expense related to the adjustment for unrealized gain on derivatives at March 31, 2014 was $2.1 million. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
On April 8, 2015, we completed a Secondary Offering in which Carlyle sold an aggregate of 40,000,000 common shares at a price of $28.00 per share. The underwriters also exercised their over-allotment option and purchased an additional 6,000,000 common shares. We did not receive any proceeds from the sale of common shares in the Secondary Offering. | |
On April 8, 2015, Carlyle sold 20,000,000 common shares in a private placement offering to an affiliate of Berkshire Hathaway Inc. for $28.00 per share. We did not receive any proceeds from the sale of common shares in the private placement offering. | |
As a result of the transactions above, Carlyle's interest in Axalta decreased below 50% and triggered a liquidity event, as defined in the Axalta Coating Systems Bermuda Co., Ltd. 2013 Equity Incentive Plan (the "2013 Plan"). Upon the liquidity event, all issued and outstanding stock options issued under the 2013 Plan became fully vested. As a result of these shares becoming fully vested, the remaining unrecognized stock-based compensation expense of $8.0 million will be recognized for the three months ended June 30, 2015. |
Recent_Accounting_Guidance_Pol
Recent Accounting Guidance (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy | Accounting Guidance Issued But Not Yet Adopted |
In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs", which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We intend to early adopt this new guidance beginning in the second quarter of 2015. The impacts to the balance sheets at March 31, 2015 and December 31, 2014 would have been corresponding decreases to both total assets and total liabilities of $86.8 million and $91.0 million, respectively. | |
In February 2015, the FASB issued ASU 2015-02 (Accounting Standard Codification 810), "Consolidation", which sets forth guidance on accounting for consolidation of certain legal entities. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Although early adoption is permitted, we are still in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows. | |
In May 2014, the FASB issued ASU 2014-09 (Accounting Standard Codification 606), "Revenue from Contracts with Customers", which sets forth the guidance that an entity should use related to revenue recognition. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is not permitted. In April 2015 the FASB proposed a one-year delay in the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and proposed that companies would be allowed to early adopt the guidance as of the original effective date. We are in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows. |
Goodwill_and_Identifiable_Inta1
Goodwill and Identifiable Intangible Assets (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Goodwill [Line Items] | |||||||||||
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2014 to March 31, 2015 by reportable segment: | ||||||||||
Performance | Transportation | Total | |||||||||
Coatings | Coatings | ||||||||||
At December 31, 2014 | $ | 933.6 | $ | 67.5 | 1,001.10 | ||||||
Goodwill from acquisition | 12.5 | — | 12.5 | ||||||||
Foreign currency translation | (90.3 | ) | (6.5 | ) | (96.8 | ) | |||||
31-Mar-15 | $ | 855.8 | $ | 61 | $ | 916.8 | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class | The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: | ||||||||||
31-Mar-15 | Gross Carrying | Accumulated | Net Book | Weighted average | |||||||
Amount | Amortization | Value | amortization periods (years) | ||||||||
Technology | $ | 411.8 | $ | (86.5 | ) | $ | 325.3 | 10 | |||
Trademarks - indefinite-lived | 284.4 | — | 284.4 | Indefinite | |||||||
Trademarks - definite-lived | 41.9 | (6.2 | ) | 35.7 | 14.8 | ||||||
Customer relationships | 676.9 | (76.5 | ) | 600.4 | 19.4 | ||||||
Non-compete agreements | 1.9 | (0.9 | ) | 1 | 4.6 | ||||||
Total | $ | 1,416.90 | $ | (170.1 | ) | $ | 1,246.80 | ||||
31-Dec-14 | Gross Carrying | Accumulated | Net Book | Weighted average | |||||||
Amount | Amortization | Value | amortization periods (years) | ||||||||
Technology | $ | 411.8 | $ | (76.3 | ) | $ | 335.5 | 10 | |||
Trademarks—indefinite-lived | 284.4 | — | 284.4 | Indefinite | |||||||
Trademarks—definite-lived | 41.8 | (5.5 | ) | 36.3 | 14.8 | ||||||
Customer relationships | 713.9 | (71.3 | ) | 642.6 | 19.4 | ||||||
Non-compete agreements | 2 | (0.8 | ) | 1.2 | 4.6 | ||||||
Total | $ | 1,453.90 | $ | (153.9 | ) | $ | 1,300.00 | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2015 and each of the succeeding four years is: | ||||||||||
Remainder of 2015 | $ | 59.7 | |||||||||
2016 | $ | 79.6 | |||||||||
2017 | $ | 79.2 | |||||||||
2018 | $ | 79.2 | |||||||||
2019 | $ | 79.2 | |||||||||
In Process Research and Development [Member] | |||||||||||
Goodwill [Line Items] | |||||||||||
Schedule of Finite-Lived Intangible Assets | Activity related to in process research and development projects for the three months ended March 31, 2015 was: | ||||||||||
In Process Research and Development | Activity | ||||||||||
Balance at December 31, 2014 | $ | 5.2 | |||||||||
Completed | (1.5 | ) | |||||||||
Abandoned | — | ||||||||||
Balance at March 31, 2015 | $ | 3.7 | |||||||||
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring and Related Costs | The following table summarizes the activities related to the restructuring reserves, recorded within other accrued liabilities, and expenses from December 31, 2014 to March 31, 2015: | |||
2015 Activity | ||||
Balance at December 31, 2014 | $ | 48.5 | ||
Expense Recorded | 2.2 | |||
Payments Made | (14.0 | ) | ||
Foreign Currency Changes | (5.0 | ) | ||
Balance at March 31, 2015 | $ | 31.7 | ||
Longterm_Employee_Benefits_Tab
Long-term Employee Benefits (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Compensation and Retirement Disclosure [Abstract] | |||||||
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic benefit (gain) cost for the three months ended March 31, 2015 and 2014. | ||||||
Pension Benefits | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Components of net periodic benefit cost: | |||||||
Net periodic benefit cost: | |||||||
Service cost | $ | 3.1 | $ | 4.6 | |||
Interest cost | 4.6 | 6 | |||||
Expected return on plan assets | (3.7 | ) | (3.7 | ) | |||
Amortization of actuarial (gain) loss, net | 0.3 | (0.1 | ) | ||||
Amortization of prior service credit, net | (0.1 | ) | — | ||||
Net periodic benefit cost | $ | 4.2 | $ | 6.8 | |||
Other Long-Term Employee Benefits | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Components of net periodic benefit (gain) cost: | |||||||
Net periodic benefit (gain) cost: | |||||||
Service cost | $ | — | $ | — | |||
Interest cost | — | 0.1 | |||||
Amortization of prior service credit | (0.9 | ) | — | ||||
Net periodic benefit (gain) cost | $ | (0.9 | ) | $ | 0.1 | ||
Other_Expense_Net_Tables
Other Expense, Net (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Other Income and Expenses [Abstract] | |||||||
Schedule of Other Nonoperating Income (Expense) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Exchange losses, net | $ | 8.7 | $ | 0.1 | |||
Management fees and expenses | — | 0.8 | |||||
Other (income) expense | (4.8 | ) | 3.6 | ||||
Total | $ | 3.9 | $ | 4.5 | |||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Income Tax Disclosure [Abstract] | |||||
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rates for the three months ended March 31, 2015 and March 31, 2014 are as follows: | ||||
Three Months Ended March 31, | |||||
2015 | 2014 | ||||
Effective Tax Rate | 2.5 | % | 144.6 | % |
Earnings_Loss_Per_Common_Share1
Earnings (Loss) Per Common Share (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the Company’s basic and diluted earnings (loss) per common share is as follows (in millions, except earnings (loss) per share): | ||||||
Three Months Ended March 31, | |||||||
(In millions, except per share data) | 2015 | 2014 | |||||
Net income (loss) to common shareholders | $ | 45.1 | $ | (4.3 | ) | ||
Basic weighted average shares outstanding | 229.8 | 229.1 | |||||
Diluted weighted average shares outstanding | 237 | 229.1 | |||||
Earnings per Common Share: | |||||||
Basic net income (loss) per share | $ | 0.2 | $ | (0.02 | ) | ||
Diluted net income (loss) per share | $ | 0.19 | $ | (0.02 | ) | ||
Accounts_and_Notes_Receivable_1
Accounts and Notes Receivable, Net (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Receivables [Abstract] | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Accounts receivable—trade, net | $ | 664.1 | $ | 638.3 | |||
Notes receivable | 42.9 | 45.5 | |||||
Other | 126 | 136.6 | |||||
Total | $ | 833 | $ | 820.4 | |||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Inventory Disclosure [Abstract] | |||||||
Schedule of Inventory, Current | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Finished products | $ | 316.3 | $ | 323.7 | |||
Semi-finished products | 87.9 | 81.3 | |||||
Raw materials and supplies | 137.1 | 133.3 | |||||
Total | $ | 541.3 | $ | 538.3 | |||
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Property, Plant and Equipment | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Property, plant and equipment | $ | 1,776.30 | $ | 1,858.20 | |||
Accumulated depreciation | (364.6 | ) | (344.1 | ) | |||
Property, plant, and equipment, net | $ | 1,411.70 | $ | 1,514.10 | |||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Instrument [Line Items] | |||||||
Schedule of Debt | Borrowings are summarized as follows: | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
Dollar Term Loan | $ | 2,159.80 | $ | 2,165.50 | |||
Euro Term Loan | 425 | 481 | |||||
Dollar Senior Notes | 750 | 750 | |||||
Euro Senior Notes | 270.4 | 305.3 | |||||
Short-term borrowings | 14.3 | 12.2 | |||||
Other borrowings | 6.1 | 0.7 | |||||
Unamortized original issue discount | (17.3 | ) | (18.3 | ) | |||
$ | 3,608.30 | $ | 3,696.40 | ||||
Less: | |||||||
Short term borrowings | $ | 14.3 | $ | 12.2 | |||
Current portion of long-term borrowings | 27.3 | 27.9 | |||||
Long-term debt | $ | 3,566.70 | $ | 3,656.30 | |||
Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2015. | ||||||
Remainder of 2015 | $ | 34.2 | |||||
2016 | 29.7 | ||||||
2017 | 29.2 | ||||||
2018 | 28.1 | ||||||
2019 | 27.3 | ||||||
Thereafter | 3,477.10 | ||||||
$ | 3,625.60 | ||||||
Euro Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption | On or after February 1, 2016, we have the option to redeem all or part of the Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount): | ||||||
Period | Euro Notes Percentage | ||||||
2016 | 104.313 | % | |||||
2017 | 102.875 | % | |||||
2018 | 101.438 | % | |||||
2019 and thereafter | 100 | % | |||||
Dollar Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption | On or after February 1, 2016, we have the option to redeem all or part of the Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) | ||||||
Period | Dollar Notes Percentage | ||||||
2016 | 105.531 | % | |||||
2017 | 103.688 | % | |||||
2018 | 101.844 | % | |||||
2019 and thereafter | 100 | % |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Derivative [Line Items] | ||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables set forth the locations and amounts recognized during the three months ended March 31, 2015 and 2014 for these cash flow hedges. | |||||||||||
Derivatives in Cash Flow Hedging | Amount of | Location of (Gain) Loss Reclassified from | Amount of | Location of | Amount of | |||||||
Relationships in three months ended March 31, 2015: | (Gain) Loss | Accumulated OCI into Income (Effective Portion) | (Gain) Loss | (Gains) Losses | (Gain) Loss | |||||||
Recognized | Reclassified | Recognized in Income on | Recognized | |||||||||
in OCI on | from | Derivatives (Ineffective Portion) | in Income on | |||||||||
Derivatives | Accumulated | Derivatives | ||||||||||
(Effective | OCI to | (Ineffective | ||||||||||
Portion) | Income | Portion) | ||||||||||
(Effective | ||||||||||||
Portion) | ||||||||||||
Interest rate contracts | $ | 4.8 | Interest expense, net | $ | 1.6 | Interest expense, net | $ | 1.2 | ||||
Derivatives in Cash Flow Hedging | Amount of | Location of (Gain) Loss Reclassified from | Amount of | Location of | Amount of | |||||||
Relationships in three months ended March 31, 2014: | (Gain) Loss | Accumulated OCI into Income (Effective Portion) | (Gain) Loss | (Gains) Losses | (Gain) Loss | |||||||
Recognized | Reclassified | Recognized in Income on | Recognized | |||||||||
in OCI on | from | Derivatives (Ineffective Portion) | in Income on | |||||||||
Derivatives | Accumulated | Derivatives | ||||||||||
(Effective | OCI to | (Ineffective | ||||||||||
Portion) | Income | Portion) | ||||||||||
(Effective | ||||||||||||
Portion) | ||||||||||||
Interest rate contracts | $ | (0.5 | ) | Interest expense, net | $ | 1.6 | Interest expense, net | $ | 1.3 | |||
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows: | |||||||||||
Three Months Ended March 31, | ||||||||||||
Derivatives Not Designated as Hedging | Location of (Gain) Loss Recognized in | 2015 | 2014 | |||||||||
Instruments under ASC 815 | Income on Derivatives | |||||||||||
Foreign currency forward contract | Other expense, net as a component of Exchange (gains) losses | $ | (1.8 | ) | $ | 1.2 | ||||||
Interest rate cap | Interest expense, net | — | 1.8 | |||||||||
$ | (1.8 | ) | $ | 3 | ||||||||
Designated as Hedging Instrument [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in our condensed consolidated balance sheet: | |||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||
Other assets: | ||||||||||||
Interest rate swaps | $ | 0.8 | $ | 5.9 | ||||||||
Total assets | $ | 0.8 | $ | 5.9 | ||||||||
Other liabilities: | ||||||||||||
Interest rate swaps | $ | 2.5 | $ | 1.5 | ||||||||
Total liabilities | $ | 2.5 | $ | 1.5 | ||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheet: | |||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||
Other assets: | ||||||||||||
Interest rate cap | $ | 0.1 | $ | 0.1 | ||||||||
Total assets | $ | 0.1 | $ | 0.1 | ||||||||
Segments_Tables
Segments (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Reconciliation of Revenue from Segments to Consolidated | Our business serves four end-markets globally as follows: | |||||||||
Three Months Ended March 31, | ||||||||||
2015 | 2014 | |||||||||
Performance Coatings | ||||||||||
Refinish | $ | 393.2 | $ | 435.2 | ||||||
Industrial | 164 | 180.9 | ||||||||
Total Net sales Performance Coatings | 557.2 | 616.1 | ||||||||
Transportation Coatings | ||||||||||
Light Vehicle | 333.2 | 339.6 | ||||||||
Commercial Vehicle | 98.8 | 91.7 | ||||||||
Total Net sales Transportation Coatings | 432 | 431.3 | ||||||||
Total Net sales | $ | 989.2 | $ | 1,047.40 | ||||||
Schedule of Segment Reporting Information, by Segment | ||||||||||
Performance | Transportation | Total | ||||||||
Coatings | Coatings | |||||||||
For the Three Months Ended March 31, 2015 | ||||||||||
Net sales (1) | $ | 557.2 | $ | 432 | $ | 989.2 | ||||
Equity in earnings in unconsolidated affiliates | 0.1 | 0.3 | 0.4 | |||||||
Adjusted EBITDA (2) | 107.1 | 74.9 | 182 | |||||||
Investment in unconsolidated affiliates | 4 | 6.5 | 10.5 | |||||||
Performance | Transportation | Total | ||||||||
Coatings | Coatings | |||||||||
For the Three Months Ended March 31, 2014 | ||||||||||
Net sales (1) | $ | 616.1 | $ | 431.3 | $ | 1,047.40 | ||||
Equity in earnings in unconsolidated affiliates | 0.3 | 0.3 | 0.6 | |||||||
Adjusted EBITDA (2) | 124.5 | 62.2 | 186.7 | |||||||
Investment in unconsolidated affiliates | 8 | 8.4 | 16.4 | |||||||
-1 | The Company has no intercompany sales between segments. | |||||||||
-2 | The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income (loss) before interest, taxes, depreciation and amortization and other unusual items impacting operating results. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance. | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliation of Adjusted EBITDA to income (loss) before income taxes follows: | |||||||||
Three Months Ended March 31, | ||||||||||
2015 | 2014 | |||||||||
Income before income taxes | $ | 47.9 | $ | 8.3 | ||||||
Interest expense, net | 50 | 59 | ||||||||
Depreciation and amortization | 72.6 | 81.1 | ||||||||
EBITDA | 170.5 | 148.4 | ||||||||
Financing costs (a) | — | 3.1 | ||||||||
Foreign exchange remeasurement losses (b) | 8.7 | 0.1 | ||||||||
Long-term employee benefit plan adjustments (c) | 0.2 | 2.3 | ||||||||
Termination benefits and other employee related costs (d) | 3.7 | 3.2 | ||||||||
Consulting and advisory fees (e) | 3.1 | 13 | ||||||||
Transition-related costs (f) | — | 13.9 | ||||||||
Secondary offering costs (g) | 1.4 | — | ||||||||
Other adjustments (h) | (2.1 | ) | 2.8 | |||||||
Dividends in respect of noncontrolling interest (i) | (3.5 | ) | (0.9 | ) | ||||||
Management fee expense (j) | — | 0.8 | ||||||||
Adjusted EBITDA | $ | 182 | $ | 186.7 | ||||||
(a) | In connection with an amendment to the Senior Secured Credit Facilities in February 2014, we recognized $3.1 million of costs during the three months ended March 31, 2014. | |||||||||
(b) | Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies. | |||||||||
(c) | Eliminates the non-service cost components of long-term employee benefit costs. | |||||||||
(d) | Represents expenses primarily related to employee termination benefits, including our initiative to improve the overall cost structure within the European region, and other employee-related costs. Termination benefits include the costs associated with our headcount initiatives associated with cost saving opportunities that were related to our transition to a standalone entity and our Axalta Way cost savings initiatives in 2015. | |||||||||
(e) | Represents fees paid to consultants, advisors, and other third-party professional organizations for professional services rendered in conjunction with the transition from DuPont to a standalone entity during 2014. Amounts incurred for the three months ended March 31, 2015 primarily relate to our Axalta Way cost savings initiatives. | |||||||||
(f) | Represents charges associated with the transition from DuPont to a standalone entity, including branding and marketing, information technology related costs, and facility transition costs. | |||||||||
(g) | Represents costs associated with the secondary offering of our common shares by Carlyle that closed in April 2015 (the "Secondary Offering"). | |||||||||
(h) | Represents costs for certain unusual or non-operational (gains) and losses, including a $5.4 million gain recognized in 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest, stock-based compensation, equity investee dividends, indemnity losses associated with the Acquisition, and loss (gain) on sale and disposal of property, plant and equipment. | |||||||||
(i) | Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned. | |||||||||
(j) | Pursuant to Axalta’s management agreement with Carlyle Investment for management and financial advisory services and oversight provided to Axalta and its subsidiaries, Axalta was required to pay an annual management fee of $3.0 million and out-of-pocket expenses. This agreement terminated upon completion of the IPO in November 2014. |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Equity [Abstract] | ||||||||||
Schedule of Stockholders Equity | The following tables present the change in total shareholders’ equity for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Total Axalta | Noncontrolling | Total | ||||||||
Interests | ||||||||||
Balance January 1, 2015 | $ | 1,044.70 | $ | 67.3 | $ | 1,112.00 | ||||
Net income | 45.1 | 1.6 | 46.7 | |||||||
Other comprehensive (loss), net of tax | (112.1 | ) | (0.4 | ) | (112.5 | ) | ||||
Exercise of stock options | (0.6 | ) | — | (0.6 | ) | |||||
Recognition of stock-based compensation | 1.8 | — | 1.8 | |||||||
Noncontrolling interests of acquired subsidiaries | — | 4.3 | 4.3 | |||||||
Dividends declared to noncontrolling interests | — | (3.5 | ) | (3.5 | ) | |||||
Balance March 31, 2015 | $ | 978.9 | $ | 69.3 | $ | 1,048.20 | ||||
Total Axalta | Noncontrolling | Total | ||||||||
Interests | ||||||||||
Balance January 1, 2014 | $ | 1,142.90 | $ | 68.9 | $ | 1,211.80 | ||||
Net income (loss) | (4.3 | ) | 0.6 | (3.7 | ) | |||||
Other comprehensive (loss), net of tax | (3.0 | ) | — | (3.0 | ) | |||||
Recognition of stock-based compensation | 1.8 | — | 1.8 | |||||||
Dividends declared to noncontrolling interests | — | (0.9 | ) | (0.9 | ) | |||||
Balance March 31, 2014 | $ | 1,137.40 | $ | 68.6 | $ | 1,206.00 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | ||||||||||||||||
Unrealized | Pension and | Unrealized | Unrealized | Accumulated | ||||||||||||
Currency | Other | Gain (Loss) on | Gain (Losses) on | Other | ||||||||||||
Translation | Long-term | Securities | Derivatives | Comprehensive | ||||||||||||
Adjustments | Employee | Income (loss) | ||||||||||||||
Benefit | ||||||||||||||||
Adjustments | ||||||||||||||||
December 31, 2014 | $ | (72.1 | ) | $ | (31.2 | ) | $ | (0.2 | ) | $ | 0.2 | $ | (103.3 | ) | ||
Current year deferrals to AOCI | (109.2 | ) | — | 0.5 | (1.4 | ) | (110.1 | ) | ||||||||
Reclassifications from AOCI to Net income | — | (0.4 | ) | — | (1.6 | ) | (2.0 | ) | ||||||||
Net Change | (109.2 | ) | (0.4 | ) | 0.5 | (3.0 | ) | (112.1 | ) | |||||||
March 31, 2015 | $ | (181.3 | ) | $ | (31.6 | ) | $ | 0.3 | $ | (2.8 | ) | $ | (215.4 | ) | ||
Unrealized | Pension and | Unrealized | Unrealized | Accumulated | ||||||||||||
Currency | Other | Loss on | Gain (Loss) on | Other | ||||||||||||
Translation | Long-term | Securities | Derivatives | Comprehensive | ||||||||||||
Adjustments | Employee | Income | ||||||||||||||
Benefit | ||||||||||||||||
Adjustments | ||||||||||||||||
December 31, 2013 | $ | 24.3 | $ | 7.5 | $ | (0.9 | ) | $ | 3.1 | $ | 34 | |||||
Current year deferrals to AOCI | (7.5 | ) | 4.5 | (0.2 | ) | 1.9 | (1.3 | ) | ||||||||
Reclassifications from AOCI to Net income | — | (0.1 | ) | — | (1.6 | ) | (1.7 | ) | ||||||||
Net Change | (7.5 | ) | 4.4 | (0.2 | ) | 0.3 | (3.0 | ) | ||||||||
March 31, 2014 | $ | 16.8 | $ | 11.9 | $ | (1.1 | ) | $ | 3.4 | $ | 31 | |||||
Basis_of_Presentation_of_the_C1
Basis of Presentation of the Condensed Consolidated Financial Statements Basis of Presentation of the Condensed Consolidated Financial Statements (Details) (IPO [Member], Common Stock [Member], USD $) | 0 Months Ended | |
Nov. 11, 2014 | Nov. 11, 2014 | |
IPO [Member] | Common Stock [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Number of shares issued in transaction | 57,500,000 | |
Sale of stock, price per share (dollars per share) | $19.50 | $19.50 |
Recent_Accounting_Guidance_Det
Recent Accounting Guidance (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Decrease in total assets from early adoption | ($5,898.40) | ($6,252.80) |
Decrease in total liabilities from early adoption | -4,850.20 | -5,140.80 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Decrease in total assets from early adoption | 86.8 | 91 |
Decrease in total liabilities from early adoption | $86.80 | $91 |
Goodwill_and_Identifiable_Inta2
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $1,001.10 |
Goodwill, acquired during period | 12.5 |
Foreign currency translation | -96.8 |
Goodwill, ending balance | 916.8 |
Performance Coatings [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 933.6 |
Goodwill, acquired during period | 12.5 |
Foreign currency translation | -90.3 |
Goodwill, ending balance | 855.8 |
Transportation Coatings [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 67.5 |
Goodwill, acquired during period | 0 |
Foreign currency translation | -6.5 |
Goodwill, ending balance | $61 |
Goodwill_and_Identifiable_Inta3
Goodwill and Identifiable Intangible Assets - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill [Line Items] | ||
Amortization of acquired intangibles | $20 | $21.10 |
Equity Method Investee [Member] | ||
Goodwill [Line Items] | ||
Additional interest purchased | 25.00% |
Goodwill_and_Identifiable_Inta4
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $1,416.90 | $1,453.90 |
Accumulated Amortization | -170.1 | -153.9 |
Net Book Value, definite-lived | 1,246.80 | 1,300 |
Trademarks [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Net Book Value, indefinite-lived | 284.4 | 284.4 |
Technology-Based Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 411.8 | 411.8 |
Accumulated Amortization | -86.5 | -76.3 |
Net Book Value, definite-lived | 325.3 | 335.5 |
Weighted average amortization periods (years) | 10 years | 10 years |
Trademarks [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 41.9 | 41.8 |
Accumulated Amortization | -6.2 | -5.5 |
Net Book Value, definite-lived | 35.7 | 36.3 |
Weighted average amortization periods (years) | 14 years 9 months 18 days | 14 years 9 months 18 days |
Customer Relationships [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 676.9 | 713.9 |
Accumulated Amortization | -76.5 | -71.3 |
Net Book Value, definite-lived | 600.4 | 642.6 |
Weighted average amortization periods (years) | 19 years 4 months 24 days | 19 years 4 months 24 days |
Noncompete Agreements [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 1.9 | 2 |
Accumulated Amortization | -0.9 | -0.8 |
Net Book Value, definite-lived | $1 | $1.20 |
Weighted average amortization periods (years) | 4 years 6 months 22 days | 4 years 7 months 6 days |
Goodwill_and_Identifiable_Inta5
Goodwill and Identifiable Intangible Assets - Schedule of Activity Related to In Process Research and Development Projects (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $1,300 | |
Ending balance | 1,246.80 | 1,300 |
In Process Research and Development [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 5.2 | |
Completed | -1.5 | |
Abandoned | 0 | |
Ending balance | $3.70 |
Goodwill_and_Identifiable_Inta6
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2015 | $59.70 |
2016 | 79.6 |
2017 | 79.2 |
2018 | 79.2 |
2019 | $79.20 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring and Related Activities [Abstract] | ||
Restructuring costs | $2.20 | $0.10 |
Restructuring_Restructuring_Re
Restructuring - Restructuring Reserve (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $48.50 | |
Expense Recorded | 2.2 | 0.1 |
Payments Made | -14 | |
Foreign Currency Changes | -5 | |
Ending balance | $31.70 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum exposure, undiscounted | $2,100,000 | $2,200,000 |
Accrued in period | $0 | $0 |
Longterm_Employee_Benefits_Add
Long-term Employee Benefits - Additional Information (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Recognized gain (loss) due to curtailments | $5.60 |
Longterm_Employee_Benefits_Sch
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Plan [Member] | ||
Net periodic benefit cost: | ||
Service cost | $3.10 | $4.60 |
Interest cost | 4.6 | 6 |
Expected return on plan assets | -3.7 | -3.7 |
Amortization of actuarial (gain) loss, net | 0.3 | -0.1 |
Amortization of prior service credit, net | -0.1 | 0 |
Net periodic benefit (gain) cost | 4.2 | 6.8 |
Other Postretirement Benefit Plan [Member] | ||
Net periodic benefit cost: | ||
Service cost | 0 | 0 |
Interest cost | 0 | 0.1 |
Amortization of prior service credit, net | -0.9 | 0 |
Net periodic benefit (gain) cost | ($0.90) | $0.10 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $1.80 | $1.80 |
Compensation not yet recognized | $8.60 | |
Grants in period | 100,945 | |
Weighted average exercise price | $25.49 | |
Grant date fair value (dollars per share) | $6.88 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period for recognition of compensation not yet recognized | 3 years 1 month 2 days | |
Expiration period | 10 years | |
Award vesting period | 3 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Grants in period | 41,430 | |
Weighted average grant date fair value (dollars per share) | $25.49 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Management fee expense | $0 | $800,000 |
Carlyle Investment Management Llc [Member] | ||
Related Party Transaction [Line Items] | ||
Fees and commissions | 3,000,000 | |
Management fee expense | 0 | 800,000 |
Service King Collision Repair [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties sales | $2,000,000 |
Other_Expense_Net_Schedule_of_
Other Expense, Net - Schedule of Other Non-operating Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Income and Expenses [Abstract] | ||
Exchange losses, net | $8.70 | $0.10 |
Management fees and expenses | 0 | 0.8 |
Other (income) expense | -4.8 | 3.6 |
Total | $3.90 | $4.50 |
Other_Expense_Net_Additional_I
Other Expense, Net - Additional Information (Details) (USD $) | 3 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 |
Other Income Expense [Line Items] | ||
Goodwill, acquired during period | $12.50 | |
Equity Method Investee [Member] | ||
Other Income Expense [Line Items] | ||
Additional interest purchased | 25.00% | 25.00% |
Business combination, consideration transferred | 4.3 | |
Equity method investments, remeasurement gain | 5.4 | |
Goodwill, acquired during period | 12.5 | |
Venezuelan Subsidiary [Member] | ||
Other Income Expense [Line Items] | ||
Asset, reporting currency denominated, value | 13.7 | 13.7 |
Asset, reporting currency-denominated, non-monetary value | $155.70 | $155.70 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | 2.50% | 144.60% |
Federal statutory income tax rate, percent | 35.00% |
Earnings_Loss_Per_Common_Share2
Earnings (Loss) Per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income (loss) to common shareholders | $45.10 | ($4.30) |
Basic weighted average shares outstanding | 229.8 | 229.1 |
Diluted weighted average shares outstanding | 237 | 229.1 |
Earnings per Common Share: | ||
Basic net income (loss) per share (dollars per share) | $0.20 | ($0.02) |
Diluted net income (loss) per share (dollars per share) | $0.19 | ($0.02) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 16.2 |
Accounts_and_Notes_Receivable_2
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Accounts receivable—trade, net | $664.10 | $638.30 |
Notes receivable | 42.9 | 45.5 |
Other | 126 | 136.6 |
Total | $833 | $820.40 |
Accounts_and_Notes_Receivable_3
Accounts and Notes Receivable, Net - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Receivables [Abstract] | |||
Allowance for doubtful accounts | $9.50 | $9.90 | |
Provision for Doubtful Accounts | $0.70 | $1.20 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventory (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished products | $316.30 | $323.70 |
Semi-finished products | 87.9 | 81.3 |
Raw materials and supplies | 137.1 | 133.3 |
Inventories | $541.30 | $538.30 |
Inventories_Additional_Informa
Inventories - Additional Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Stores and supplies inventories | $20.80 | $20.90 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $41.30 | $48.40 |
Property_Plant_and_Equipment_N3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $1,776.30 | $1,858.20 |
Accumulated depreciation | -364.6 | -344.1 |
Property, plant, and equipment, net | $1,411.70 | $1,514.10 |
Borrowings_Schedule_of_Debt_De
Borrowings - Schedule of Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $14.30 | $12.20 |
Other borrowings | 6.1 | 0.7 |
Unamortized original issue discount | -17.3 | -18.3 |
Debt and Capital Lease Obligations | 3,608.30 | 3,696.40 |
Current portion of long-term borrowings | 27.3 | 27.9 |
Long-term borrowings | 3,566.70 | 3,656.30 |
Dollar Term Loan Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | 2,159.80 | 2,165.50 |
Euro Term Loan Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | 425 | 481 |
Dollar Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 750 | 750 |
Euro Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $270.40 | $305.30 |
Borrowings_Senior_Secured_Cred
Borrowings - Senior Secured Credit Facilities (Details) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||||||
Feb. 03, 2014 | Sep. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Mar. 31, 2015 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Mar. 31, 2015 | Feb. 03, 2014 | Mar. 31, 2015 | Feb. 03, 2014 | Feb. 03, 2014 | Mar. 31, 2015 | Feb. 03, 2014 | Mar. 31, 2015 | Feb. 03, 2014 | Mar. 31, 2015 | |
USD ($) | USD ($) | USD ($) | USD ($) | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Senior Secured Credit Facilities [Member] | Senior Secured Credit Facilities [Member] | Senior Secured Credit Facilities [Member] | Interest Rate Floor [Member] | Interest Rate Floor [Member] | Interest Rate Floor [Member] | Base Rate [Member] | Base Rate [Member] | Prime Rate [Member] | Prime Rate [Member] | Prime Rate [Member] | Dollar Term Loan Due 2020 [Member] | Dollar Term Loan Due 2020 [Member] | Dollar Term Loan Due 2020 [Member] | Dollar Term Loan Due 2020 [Member] | Euro Term Loan Due 2020 [Member] | Euro Term Loan Due 2020 [Member] | Euro Term Loan Due 2020 [Member] | Euro Term Loan Due 2020 [Member] | New Dollar Term Loan [Member] | New Dollar Term Loan [Member] | New Dollar Term Loan [Member] | New Dollar Term Loan [Member] | New Dollar Term Loan [Member] | New Dollar Term Loan [Member] | New Dollar Term Loan [Member] | New Euro Term Loan [Member] | New Euro Term Loan [Member] | New Euro Term Loan [Member] | New Euro Term Loan [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Senior Secured Credit Facilities [Member] | Senior Secured Credit Facilities [Member] | Eurocurrency Rate Loans [Member] | Prior To Amendment [Member] | Senior Secured Credit Facilities [Member] | Adjusted Euro Currency Rate [Member] | Adjusted Euro Currency Rate [Member] | Adjusted Euro Currency Rate [Member] | USD ($) | Interest Rate Floor [Member] | Interest Rate Floor [Member] | EUR (€) | Interest Rate Floor [Member] | Interest Rate Floor [Member] | Eurocurrency Rate Loans [Member] | Eurocurrency Rate Loans [Member] | Interest Rate Floor [Member] | Base Rate [Member] | Base Rate [Member] | Eurocurrency Rate Loans [Member] | Eurocurrency Rate Loans [Member] | |||||||||||||
Senior Secured Credit Facilities [Member] | Senior Secured Credit Facilities [Member] | Senior Secured Credit Facilities [Member] | Prior To Amendment [Member] | Eurocurrency Rate Loans [Member] | Prior To Amendment [Member] | Prior To Amendment [Member] | ||||||||||||||||||||||||||||||||
Prior To Amendment [Member] | ||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||
Debt, long-term and short-term, combined amount | $2,282,800,000 | € 397,000,000 | ||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 3.50% | 1.00% | 0.50% | 0.50% | 2.00% | 3.50% | 1.25% | 2.50% | 2.75% | 3.00% | 1.00% | 2.00% | 3.00% | 3.25% | ||||||||||||||||||||||||
Debt instrument covenant maximum consolidated leverage ratio | 4.5 | 4.5 | 4.5 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage rate range, minimum | 4.00% | 1.00% | ||||||||||||||||||||||||||||||||||||
Debt instrument periodic payment principal percentage | 1.00% | 1.00% | ||||||||||||||||||||||||||||||||||||
Debt instrument basis spread reduced on variable rate | 3.25% | 2.25% | 2.25% | 0.25% | 0.25% | 0.25% | ||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.25% | |||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on additional variable rate | 2.50% | |||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | |||||||||||||||||||||||||||||||||||||
Proceeds from maturities, prepayments and calls of other investments (more than) | 25,000,000 | |||||||||||||||||||||||||||||||||||||
Percentage on excess cash flow for mandatory prepayments of debt | 50.00% | |||||||||||||||||||||||||||||||||||||
Decrease in percentage on excess cash flow for mandatory prepayments of debt | 25.00% | |||||||||||||||||||||||||||||||||||||
Percentage on first lien leverage ratio for mandatory prepayments of debt | 0.00% | |||||||||||||||||||||||||||||||||||||
First lien leverage ratio upper limit | 4.25 | |||||||||||||||||||||||||||||||||||||
First lien leverage ratio lower limit | 3.5 | |||||||||||||||||||||||||||||||||||||
Debt instrument, percent of credit facility outstanding for financial covenant to be applicable | 25.00% | |||||||||||||||||||||||||||||||||||||
Debt instrument, percent of letters of credit not cash collateralized for financial covenant to be applicable | 103.00% | |||||||||||||||||||||||||||||||||||||
Deferred finance costs, net | 92,900,000 | |||||||||||||||||||||||||||||||||||||
Unamortized original issue discount | 17,300,000 | 18,300,000 | 25,700,000 | |||||||||||||||||||||||||||||||||||
Amortization of financing costs | 3,200,000 | 3,300,000 | ||||||||||||||||||||||||||||||||||||
Amortization of debt discount (premium) | 800,000 | 900,000 | ||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum amount outstanding during period | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Letters of credit outstanding, amount | 21,300,000 | 15,500,000 | ||||||||||||||||||||||||||||||||||||
Line of credit facility, remaining borrowing capacity | $378,700,000 | $384,500,000 | ||||||||||||||||||||||||||||||||||||
Debt instrument, maturity date | 1-Feb-18 | 1-Feb-20 | 1-Feb-20 |
Borrowings_Senior_Notes_Detail
Borrowings - Senior Notes (Details) | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||
Feb. 01, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Feb. 01, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 01, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 01, 2013 | Feb. 01, 2013 | |
7.375% Senior Unsecured Notes Due 2021 [Member] | 7.375% Senior Unsecured Notes Due 2021 [Member] | 5.750% Senior Secured Notes Due 2021 [Member] | 5.750% Senior Secured Notes Due 2021 [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Euro Senior Notes [Member] | Euro Senior Notes [Member] | Euro Senior Notes [Member] | Euro Senior Notes [Member] | Euro Senior Notes [Member] | Euro Senior Notes [Member] | Euro Senior Notes [Member] | Dollar Senior Notes [Member] | Dollar Senior Notes [Member] | Dollar Senior Notes [Member] | Dollar Senior Notes [Member] | Dollar Senior Notes [Member] | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Any Time Prior to February 1, 2016 [Member] | Debt Instrument Redemption Period [Member] | 12 Month Period Prior to February 1, 2016 [Member] | USD ($) | USD ($) | USD ($) | Any Time Prior to February 1, 2016 [Member] | |||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | $750,000,000 | € 250,000,000 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7.38% | 5.75% | 5.75% | 7.38% | ||||||||||||||||
Debt instrument maturity year | 2021 | 2021 | ||||||||||||||||||
Debt issuance cost | 33,100,000 | 10,200,000 | 22,900,000 | |||||||||||||||||
Unamortized debt issuance expense | 24,300,000 | 25,300,000 | 7,400,000 | 7,700,000 | 16,900,000 | 17,600,000 | ||||||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 40.00% | 10.00% | 40.00% | |||||||||||||||||
Debt instrument, redemption price, percentage | 101.00% | 105.75% | 103.00% | 101.00% | 107.38% | |||||||||||||||
Debt instrument, maturity date | 1-Feb-21 | 1-May-21 | ||||||||||||||||||
Amortization of financing costs | $1,000,000 | $1,000,000 |
Borrowings_Debt_Instrument_Red
Borrowings - Debt Instrument Redemption (Details) | 0 Months Ended | 3 Months Ended |
Feb. 01, 2013 | Mar. 31, 2015 | |
Euro Senior Notes [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 101.00% | |
Euro Senior Notes [Member] | 2016 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 104.31% | |
Euro Senior Notes [Member] | 2017 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 102.88% | |
Euro Senior Notes [Member] | 2018 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 101.44% | |
Euro Senior Notes [Member] | 2019 and thereafter [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 100.00% | |
Dollar Senior Notes [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 101.00% | |
Dollar Senior Notes [Member] | 2016 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 105.53% | |
Dollar Senior Notes [Member] | 2017 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 103.69% | |
Dollar Senior Notes [Member] | 2018 [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 101.84% | |
Dollar Senior Notes [Member] | 2019 and thereafter [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument, redemption price, percentage | 100.00% |
Borrowings_Schedule_of_Maturit
Borrowings - Schedule of Maturities of Long-term Debt (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Remainder of 2015 | $34.20 |
2016 | 29.7 |
2017 | 29.2 |
2018 | 28.1 |
2019 | 27.3 |
Thereafter | 3,477.10 |
Long-term debt | $3,625.60 |
Borrowings_Reclassifications_a
Borrowings - Reclassifications and Revisions (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Net income | $46.70 | ($3.70) |
Provision for income taxes | 1.2 | 12 |
Restatement Adjustment [Member] | Determination of Effective Interest Rate Amortization [Member] | ||
Debt Instrument [Line Items] | ||
Net income | 2.8 | |
Interest expense, debt | 3.1 | |
Provision for income taxes | $0.30 |
Fair_Value_Accounting_Details
Fair Value Accounting (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $4.50 | $4.50 |
Dollar Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 813.8 | 795 |
Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 284.6 | 320.5 |
Dollar Term Loan Due 2020 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 2,149 | 2,100.50 |
Euro Term Loan Due 2020 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $428.20 | $478 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) (Fair Value, Inputs, Level 2 [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $0.80 | $5.90 |
Derivative liability | 2.5 | 1.5 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0.8 | 5.9 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 2.5 | 1.5 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0.1 | 0.1 |
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $0.10 | $0.10 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (Interest Rate Contract [Member], Cash Flow Hedging [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion) | $4.80 | ($0.50) |
Interest Expense [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion) | 1.6 | 1.6 |
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion) | $1.20 | $1.30 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
(Gain) loss on non-derivative instruments, net | ($1.80) | $3 |
Other Nonoperating Income (Expense) [Member] | Foreign Exchange Contract [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
(Gain) loss on non-derivative instruments, net | -1.8 | 1.2 |
Interest Expense [Member] | Interest Rate Cap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
(Gain) loss on non-derivative instruments, net | $0 | $1.80 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Additional Information (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Interest_Rate_Swaps | Euro Term Loan Due 2020 [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Cap [Member] |
EUR (€) | USD ($) | Euro Term Loan Due 2020 [Member] | |||
USD ($) | |||||
Derivatives, Fair Value [Line Items] | |||||
Number Of interest rate swaps | 5 | ||||
Derivative, notional amount | $1,173 | ||||
Derivative, maturity date | 29-Sep-17 | ||||
Long-term debt, gross | 300 | ||||
Derivative, cap interest rate | 1.50% | ||||
Derivative instrument, premium | $3.10 |
Segments_Reconciliation_of_Rev
Segments - Reconciliation of Revenue from Segments to Consolidated (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Number of operating segments | 2 | |
Net sales | $989.20 | $1,047.40 |
Performance Coatings [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 557.2 | 616.1 |
Performance Coatings [Member] | Refinish [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 393.2 | 435.2 |
Performance Coatings [Member] | Industrial [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 164 | 180.9 |
Transportation Coatings [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 432 | 431.3 |
Transportation Coatings [Member] | Light Vehicle [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 333.2 | 339.6 |
Transportation Coatings [Member] | Commercial Vehicle [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | $98.80 | $91.70 |
Segments_Schedule_of_Segment_R
Segments - Schedule of Segment Reporting Information, by Segment (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net sales | $989.20 | $1,047.40 |
Equity in earnings in unconsolidated affiliates | 0.4 | 0.6 |
Adjusted EBITDA | 182 | 186.7 |
Investment in unconsolidated affiliates | 10.5 | 16.4 |
Performance Coatings [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 557.2 | 616.1 |
Equity in earnings in unconsolidated affiliates | 0.1 | 0.3 |
Adjusted EBITDA | 107.1 | 124.5 |
Investment in unconsolidated affiliates | 4 | 8 |
Transportation Coatings [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 432 | 431.3 |
Equity in earnings in unconsolidated affiliates | 0.3 | 0.3 |
Adjusted EBITDA | 74.9 | 62.2 |
Investment in unconsolidated affiliates | $6.50 | $8.40 |
Segments_Reconciliation_of_Ope
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income before income taxes | $47,900,000 | $8,300,000 | |
Interest expense, net | 50,000,000 | 59,000,000 | |
Depreciation and amortization | 72,600,000 | 81,100,000 | |
EBITDA | 170,500,000 | 148,400,000 | |
Debt modification costs | 0 | 3,100,000 | |
Exchange losses, net | 8,700,000 | 100,000 | |
Long-term employee benefit plan adjustments | 200,000 | 2,300,000 | |
Termination benefits and other employee related costs | 3,700,000 | 3,200,000 | |
Consulting and advisory fees | 3,100,000 | 13,000,000 | |
Transition-related costs | 0 | 13,900,000 | |
Secondary offering costs | 1,400,000 | 0 | |
Other adjustments | -2,100,000 | 2,800,000 | |
Dividends paid to noncontrolling interests | -3,500,000 | -900,000 | |
Management fee expense | 0 | 800,000 | |
Adjusted EBITDA | 182,000,000 | 186,700,000 | |
Carlyle Investment Management Llc [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Consulting and advisory fees | 3,000,000 | ||
Management fee expense | 0 | 800,000 | |
Senior Secured Credit Facilities [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Refinancing costs | 3,100,000 | ||
Equity Method Investee [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Equity method investments, remeasurement gain | $5,400,000 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Total stockholders’ equity, beginning balance | $1,112 | $1,211.80 |
Net income | 46.7 | -3.7 |
Other comprehensive (loss), net of tax | -112.5 | -3 |
Exercise of stock options | -0.6 | |
Recognition of stock-based compensation | 1.8 | 1.8 |
Noncontrolling interests of acquired subsidiaries | 4.3 | |
Dividends declared to noncontrolling interests | -3.5 | -0.9 |
Total stockholders’ equity, ending balance | 1,048.20 | 1,206 |
Parent [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Total stockholders’ equity, beginning balance | 1,044.70 | 1,142.90 |
Net income | 45.1 | -4.3 |
Other comprehensive (loss), net of tax | -112.1 | -3 |
Exercise of stock options | -0.6 | |
Recognition of stock-based compensation | 1.8 | 1.8 |
Noncontrolling interests of acquired subsidiaries | 0 | |
Dividends declared to noncontrolling interests | 0 | 0 |
Total stockholders’ equity, ending balance | 978.9 | 1,137.40 |
Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Total stockholders’ equity, beginning balance | 67.3 | 68.9 |
Net income | 1.6 | 0.6 |
Other comprehensive (loss), net of tax | -0.4 | 0 |
Exercise of stock options | 0 | |
Recognition of stock-based compensation | 0 | 0 |
Noncontrolling interests of acquired subsidiaries | 4.3 | |
Dividends declared to noncontrolling interests | -3.5 | -0.9 |
Total stockholders’ equity, ending balance | $69.30 | $68.60 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | ($103.30) | |
Other comprehensive loss, net of tax | -112.5 | -3 |
Accumulated other comprehensive income (loss), ending balance | -215.4 | |
Unrealized Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | -72.1 | 24.3 |
Current year deferrals to AOCI | -109.2 | -7.5 |
Reclassifications from AOCI to Net income | 0 | 0 |
Other comprehensive loss, net of tax | -109.2 | -7.5 |
Accumulated other comprehensive income (loss), ending balance | -181.3 | 16.8 |
Pension and Other Long-term Employee Benefit Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | -31.2 | 7.5 |
Current year deferrals to AOCI | 0 | 4.5 |
Reclassifications from AOCI to Net income | -0.4 | -0.1 |
Other comprehensive loss, net of tax | -0.4 | 4.4 |
Accumulated other comprehensive income (loss), ending balance | -31.6 | 11.9 |
Unrealized Gain (Loss) on Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | -0.2 | -0.9 |
Current year deferrals to AOCI | 0.5 | -0.2 |
Reclassifications from AOCI to Net income | 0 | 0 |
Other comprehensive loss, net of tax | 0.5 | -0.2 |
Accumulated other comprehensive income (loss), ending balance | 0.3 | -1.1 |
Unrealized Gain (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | 0.2 | 3.1 |
Current year deferrals to AOCI | -1.4 | 1.9 |
Reclassifications from AOCI to Net income | -1.6 | -1.6 |
Other comprehensive loss, net of tax | -3 | 0.3 |
Accumulated other comprehensive income (loss), ending balance | -2.8 | 3.4 |
Accumulated Other Comprehensive Income (loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | -103.3 | 34 |
Current year deferrals to AOCI | -110.1 | -1.3 |
Reclassifications from AOCI to Net income | -2 | -1.7 |
Other comprehensive loss, net of tax | -112.1 | -3 |
Accumulated other comprehensive income (loss), ending balance | ($215.40) | $31 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity [Abstract] | ||
Pension and other postretirement benefit plans, tax benefit (expense) | ($0.80) | $1.10 |
Cumulative pension and other postretirement benefit plans, tax (benefits) expense | -14.1 | 4.6 |
Unrealized gain (loss) on derivatives, tax | -1.8 | 0.2 |
Cumulative unrealized gain (loss) on derivatives, tax | -1.6 | 2.1 |
Recognized gain (loss) due to curtailments | $5.60 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |
Apr. 08, 2015 | Mar. 31, 2015 | |
Subsequent Event [Line Items] | ||
Share-based compensation expense | $8,600,000 | |
Subsequent Event [Member] | 2013 Plan [Member] | ||
Subsequent Event [Line Items] | ||
Share-based compensation expense | 8,000,000 | |
The Carlyle Group L.P. [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of ownership after transaction (below 50%) | 50.00% | |
The Carlyle Group L.P. [Member] | Secondary Offering [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares issued in transaction | 40,000,000 | |
Sale of stock, price per share (dollars per share) | 28 | |
Proceeds from issuance of common stock | 0 | |
The Carlyle Group L.P. [Member] | Over-Allotment Option [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares issued in transaction | 6,000,000 | |
The Carlyle Group L.P. [Member] | Private Placement [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares issued in transaction | 20,000,000 | |
Sale of stock, price per share (dollars per share) | 28 | |
Proceeds from issuance of common stock | 0 |