Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Axalta Coating Systems Ltd. | |
Trading Symbol | AXTA | |
Entity Central Index Key | 1,616,862 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 243,164,757 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,088.5 | $ 1,063.6 | $ 2,096.3 | $ 2,020.8 |
Other revenue | 6.1 | 7 | 12 | 13 |
Total revenue | 1,094.6 | 1,070.6 | 2,108.3 | 2,033.8 |
Cost of goods sold | 690 | 649 | 1,331.1 | 1,255.4 |
Selling, general and administrative expenses | 246.1 | 237.7 | 471.4 | 456.8 |
Venezuela deconsolidation charge | 70.9 | 0 | 70.9 | 0 |
Research and development expenses | 16.4 | 14.1 | 32 | 26.7 |
Amortization of acquired intangibles | 23.8 | 20.3 | 45.5 | 40.5 |
Income from operations | 47.4 | 149.5 | 157.4 | 254.4 |
Interest expense, net | 35.6 | 47.8 | 71.4 | 97.9 |
Other expense, net | 21.2 | 32.8 | 19.6 | 40.8 |
Income (loss) before income taxes | (9.4) | 68.9 | 66.4 | 115.7 |
Provision for income taxes | 9.5 | 16.6 | 19.4 | 30.6 |
Net income (loss) | (18.9) | 52.3 | 47 | 85.1 |
Less: Net income attributable to noncontrolling interests | 1.9 | 1.6 | 3.7 | 2.5 |
Net income (loss) attributable to controlling interests | $ (20.8) | $ 50.7 | $ 43.3 | $ 82.6 |
Basic net income (loss) per share (dollars per share) | $ (0.09) | $ 0.21 | $ 0.18 | $ 0.35 |
Diluted net income (loss) per share (dollars per share) | $ (0.09) | $ 0.21 | $ 0.18 | $ 0.34 |
Basic weighted average shares outstanding (in shares) | 240.9 | 237.7 | 240.4 | 237.4 |
Diluted weighted average shares outstanding (in shares) | 240.9 | 244.3 | 246.5 | 243.8 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ (18.9) | $ 52.3 | $ 47 | $ 85.1 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 27.2 | (13.6) | 67.8 | 2.1 |
Unrealized gain (loss) on securities | (0.3) | 0.1 | (0.3) | (0.3) |
Unrealized gain (loss) on derivatives | (1.9) | 0.5 | (1.3) | (1.7) |
Unrealized gain on pension plan obligations | 8.8 | 0.2 | 9.3 | 0.1 |
Other comprehensive income (loss), before tax | 33.8 | (12.8) | 75.5 | 0.2 |
Income tax (benefit) related to items of other comprehensive income (loss) | (2.4) | (0.8) | (2.6) | 0 |
Other comprehensive income (loss), net of tax | 31.4 | (13.6) | 72.9 | 0.2 |
Comprehensive income | 12.5 | 38.7 | 119.9 | 85.3 |
Less: Comprehensive income attributable to noncontrolling interests | 2 | 1.4 | 4.7 | 2.3 |
Comprehensive income attributable to controlling interests | $ 10.5 | $ 37.3 | $ 115.2 | $ 83 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 482.1 | $ 535.4 |
Restricted cash | 2.9 | 2.7 |
Accounts and notes receivable, net | 961.4 | 801.9 |
Inventories | 580.1 | 529.7 |
Prepaid expenses and other | 68.5 | 50.3 |
Total current assets | 2,095 | 1,920 |
Property, plant and equipment, net | 1,370.7 | 1,315.7 |
Goodwill | 1,219.3 | 964.1 |
Identifiable intangibles, net | 1,436.5 | 1,130.3 |
Other assets | 535.6 | 536.1 |
Total assets | 6,657.1 | 5,866.2 |
Current liabilities: | ||
Accounts payable | 489.9 | 474.2 |
Current portion of borrowings | 35.5 | 27.9 |
Other accrued liabilities | 456.2 | 440 |
Total current liabilities | 981.6 | 942.1 |
Long-term borrowings | 3,823.4 | 3,236 |
Accrued pensions | 262.9 | 249.1 |
Deferred income taxes | 164.5 | 160.2 |
Other liabilities | 33.2 | 32.2 |
Total liabilities | 5,265.6 | 4,619.6 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common shares, $1.00 par, 1,000.0 shares authorized, 243.0 and 240.5 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 241.5 | 239.3 |
Capital in excess of par | 1,326.3 | 1,294.3 |
Accumulated deficit | (14.8) | (58.1) |
Treasury shares, at cost | (8.3) | 0 |
Accumulated other comprehensive loss | (278.5) | (350.4) |
Total Axalta shareholders’ equity | 1,266.2 | 1,125.1 |
Noncontrolling interests | 125.3 | 121.5 |
Total shareholders’ equity | 1,391.5 | 1,246.6 |
Total liabilities and shareholders’ equity | $ 6,657.1 | $ 5,866.2 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common shares issued (in shares) | 243,000,000 | 240,500,000 |
Common shares outstanding (in shares) | 243,000,000 | 240,500,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net income | $ 47 | $ 85.1 |
Adjustment to reconcile net income to cash used for operating activities: | ||
Depreciation and amortization | 167.3 | 154.6 |
Amortization of deferred financing costs and original issue discount | 4.2 | 10.1 |
Debt extinguishment and refinancing related costs | 12.4 | 2.3 |
Deferred income taxes | (12.9) | (7.2) |
Realized and unrealized foreign exchange (gains) losses, net | (2.4) | 26 |
Stock-based compensation | 21.3 | 21.6 |
Asset impairments | 3.2 | 10.5 |
Loss on deconsolidation of Venezuela | 70.9 | 0 |
Other non-cash, net | 2.8 | (2.9) |
Changes in operating assets and liabilities: | ||
Trade accounts and notes receivable | (128.9) | (89.7) |
Inventories | (5.1) | 13.4 |
Prepaid expenses and other | (60.9) | (20.2) |
Accounts payable | (6.3) | 4 |
Other accrued liabilities | (13.4) | (15.2) |
Other liabilities | (5.1) | (6.4) |
Cash provided by operating activities | 94.1 | 186 |
Investing activities: | ||
Business acquisitions | (533.3) | 0 |
Purchase of property, plant and equipment | (57.4) | (64.8) |
Reduction of cash due to Venezuela deconsolidation | (4.3) | 0 |
Other investing activities | (0.3) | (2.4) |
Cash used for investing activities | (595.3) | (67.2) |
Financing activities: | ||
Proceeds from long term borrowings | 456.4 | 0 |
Payments on short-term borrowings | (4.4) | (5.5) |
Payments on long-term borrowings | (6.1) | (113.7) |
Financing-related costs | 8.9 | 0 |
Dividends paid to noncontrolling interests | 0.9 | 1.5 |
Purchase of treasury stock | (8.3) | 0 |
Proceeds from option exercises | 12.9 | 5.9 |
Deferred acquisition-related consideration | (3.4) | 0 |
Other financing activities | 0 | (0.2) |
Cash provided by (used for) financing activities | 437.3 | (115) |
Increase (decrease) in cash | (63.9) | 3.8 |
Effect of exchange rate changes on cash | 10.8 | (8.3) |
Cash at beginning of period | 538.1 | 487.7 |
Cash at end of period | 485 | 483.2 |
Cash and cash equivalents | 482.1 | 480.1 |
Restricted cash | $ 2.9 | $ 3.1 |
Basis of Presentation of the Co
Basis of Presentation of the Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 , the results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 , and their cash flows for the six months then ended. All intercompany balances and transactions have been eliminated. These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated and combined financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for a full year. The Acquisition The acquisition ("Acquisition") by Axalta and certain of its indirect subsidiaries, formed at the direction of an affiliate of The Carlyle Group L.P. ("Carlyle"), of all the capital stock, other equity interests and assets of certain entities which, together with their subsidiaries, comprised the DuPont Performance Coatings business ("DPC"), formerly owned by E. I. du Pont de Nemours and Company ("DuPont"), closed on February 1, 2013. Venezuela Deconsolidation During the three months ended June 30, 2017, we deconsolidated our Venezuelan subsidiary from our consolidated financial statements and began accounting for our investment in our 100% owned Venezuelan subsidiary using the cost method of accounting. See Note 21 for additional information. Accounting Standards - Reclassifications At December 31, 2016, we elected to early adopt Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows: Restricted Cash", which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. As a result, the condensed consolidated financial statements herein have been retroactively adjusted. These adjustments include a decrease in net cash used for investing activities of $0.4 million for the six months ended June 30, 2016. At December 31, 2016, we elected to early adopt ASU 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation and resulted in retrospective changes to our previously issued condensed consolidated financial statements. The new standard resulted in the recognition of excess tax benefits in our provision for income taxes. Upon adoption, this resulted in a cumulative effect of an accounting change reclassification of $43.9 million to retained earnings (accumulated deficit) on the balance sheet as of January 1, 2016, as reflected in Note 19. It also resulted in a decrease to the tax provision and corresponding increase to net income of $3.2 million and $4.4 million for the previously reported condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2016, respectively. The effect on our dilutive shares is disclosed in Note 11. We retrospectively applied the changes in presentation to the condensed consolidated statements of cash flows and no longer classify excess tax benefits or employee taxes paid for shares withheld as financing activities, which increased net cash provided by operating activities and decreased net cash used in financing activities by $6.7 million for the six months ended June 30, 2016. Correction of Immaterial Errors to Prior Period Financial Statements During the quarter ended June 30, 2017, the Company identified and corrected errors that affected previously-issued consolidated and condensed financial statements. Based on an analysis of Accounting Standards Codification (“ASC”) 250 - Accounting Changes and Error Corrections (“ASC 250”), Staff Accounting Bulletin 99 - Materiality (“SAB 99”) and Staff Accounting Bulletin 108 - Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company determined that these corrections were immaterial to the previously-issued financial statements. However, given the significance of the cumulative adjustments on the financial results for the three and six months ended June 30, 2017, we have revised, and will revise annual and interim periods in future filings, our historical presentation of certain amounts in the condensed consolidated financial statements which are described further below. Revenue Corrections The Company recognizes revenue from the sale of products to its customers when risk of loss and ownership of the product transfers to the customer. Ownership transfers either upon shipment of the product or when the product is delivered. In regards to Axalta’s refinish end-market, risk of loss passes upon the sale to its distribution customers. Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions can be given to our distribution customers and certain collision repair body shops. The Company previously recorded these additional rebates and pricing concessions at the time of sale from the distributor to the collision repair body shops. The Company has concluded those rebates and pricing concessions should have been estimated and recorded as a reduction to net sales upon the sale to our distribution customers. The Company concluded that its accounting policy for the sale to distributors is appropriate as the sales price is fixed or determinable at the time ownership transfers to these distributors, based on the Company’s ability to make a reasonable estimate of future certain pricing or rebates concessions at the time of shipment. The Company has corrected the errors in the timing of revenue recognition by estimating those additional rebates and pricing concessions at the time of sale to distribution customers and reducing net sales by $1.5 million ( $1.0 million after tax) and increasing net sales by $0.1 million ( $0.0 million after tax) for the three and six months ended June 30, 2016, respectively. The Company will also revise historical annual periods by reducing net sales by $4.7 million ( $3.0 million after tax), $3.3 million ( $2.1 million after tax), $5.1 million ( $3.1 million after tax) and $4.2 million ( $2.8 million after tax) for the periods ended December 31, 2016, 2015, 2014 and 2013, respectively. Diluted earnings per share was reduced by $0.01 for the years ended December 31, 2016, 2015, 2014 and 2013, respectively. There was no impact to diluted earnings per share for the three and six months ended June 30, 2016. The after tax impacts noted above had the equivalent impacts on our condensed consolidated statements of comprehensive income for the respective periods. The cumulative impact on the condensed consolidated balance sheet at December 31, 2016 resulted in increases of $22.4 million , $3.1 million , $8.3 million and $11.0 million to other accrued liabilities, goodwill, other assets and accumulated deficit, respectively, as a result of these prior period corrections. Amounts had no impact on the Company’s total cash flows from operations as reported within the historical condensed consolidated statements of cash flows. |
Recent Accounting Guidance
Recent Accounting Guidance | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Guidance | RECENT ACCOUNTING GUIDANCE Accounting Guidance Issued But Not Yet Adopted In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. We are in the process of working with our actuarial specialists in assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test requiring an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified in our reporting units. In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize the assets and liabilities arising from all leases (both finance and operating) on the balance sheet. In addition to this main provision, this standard included a number of additional changes to lease accounting. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows. At a minimum, total assets and total liabilities will increase in the period the ASU is adopted. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. This standard was initially intended to be effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the previous effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We are currently undertaking a process to quantify the impact that this standard will have on our consolidated financial statements and will provide further detail as we progress in our quantification, as well as our determination of the transition method to be adopted. We have reviewed our sales contracts and practices as compared to the new guidance and are working through implementation steps and continue to assess our procedural and policy requirements related to the provisions of this standard. In addition to the expanded disclosures regarding revenue, this guidance may impact timing of revenue recognition in certain arrangements within our Transportation Coatings segment in which we determine effective control over inventory has transferred to the customer upon delivery as compared to consumption under historical consignment arrangements. In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," which provides clarification around identifying performance obligations and the treatment of different licensing contracts. Additional standards related to revenue from contracts with customers have been issued during 2016 to provide narrow scope improvements and clarification. We have continued to assess the potential impact of the revised guidance on our financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of The Valspar Corporation's North American Industrial Wood Business On June 1, 2017, the Company completed its acquisition from The Valspar Corporation ("Valspar") of certain assets constituting its North American Industrial Wood Coatings business (the "Industrial Wood" business), for a purchase price of $420.0 million , subject to preliminary working capital adjustments of $10.7 million (the "Industrial Wood Acquisition"). The Industrial Wood Acquisition was funded through the refinancing of our Dollar Term Loans discussed further at Note 15. The Industrial Wood business is one of the leading providers of coatings for original equipment manufacturers ("OEM") and aftermarket industrial wood markets, including building products, cabinets, flooring and furniture, in North America. The Industrial Wood Acquisition was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date. At June 30, 2017 , we have not finalized the purchase accounting related to the Industrial Wood Acquisition and these amounts represent preliminary values. The allocation of the purchase price may be modified up to one year from the date of the acquisition as more information is obtained about the fair value of assets acquired and liabilities assumed. After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.7 million , which was comprised of the following: June 1, 2017 Accounts and notes receivable—trade $ 23.3 Inventories 24.9 Prepaid expenses and other 0.2 Property, plant and equipment 23.0 Identifiable intangibles 254.2 Accounts payable (22.4 ) Other accrued liabilities (5.1 ) Net assets acquired before goodwill on acquisition 298.1 Goodwill on acquisition 132.6 Net assets acquired $ 430.7 Goodwill was recognized as the excess of the purchase price over the net identifiable assets recognized. The goodwill is primarily attributed to our assembled workforce and the anticipated future economic benefits and is recorded within our industrial end-market in our Performance Coatings segment. The goodwill recognized at June 30, 2017 that is expected to be deductible for income tax purposes is $ 132.6 million . The Company incurred and expensed acquisition-related transaction costs of the Industrial Wood Acquisition of $5.3 million , included within selling, general and administrative expense on the condensed consolidated statements of operations for the three and six months ended June 30, 2017 . The fair value associated with definite-lived intangible assets was $254.2 million , comprised of $30.9 million in technology, $11.7 million in trademarks, $205.3 million in customer relationships and $6.3 million in favorable contracts. The definite-lived intangible assets will be amortized over an average term of 20 years. Supplemental Pro Forma Information Since the acquisition date, the Industrial Wood business contributed $22.1 million in net sales and $1.5 million income before income taxes. The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016: For the six months ended (in millions, except per share data) June 30, 2017 June 30, 2016 Net sales $ 2,197.6 $ 2,127.5 Net income $ 53.8 $ 82.1 Net income attributable to controlling interests $ 50.1 $ 79.6 Net income per share (Basic) $ 0.21 $ 0.34 Net income per share (Diluted) $ 0.20 $ 0.33 The 2017 supplemental pro forma net income was adjusted to exclude $5.3 million ( $3.3 million , net of pro forma income tax impact) of acquisition-related costs incurred in 2017 and $2.3 million ( $1.4 million , net of pro forma income tax impact) of non-recurring expense related to the fair market value adjustment to acquisition date inventory. The unaudited pro forma condensed consolidated information does not necessarily reflect the actual results that would have occurred had the acquisition taken place on January 1, 2016, nor is it meant to be indicative of future results of operations of the combined companies under the ownership and operation of the Company. Other Acquisitions During the six months ended June 30, 2017, we acquired 100% of five businesses ("2017 Acquisitions"), including the acquisition of Industrial Wood. The other four acquisitions included two North American and two European businesses which have operations in both our refinish and industrial end-markets, within our Performance Coatings segment. All of these acquisitions were accounted for as business combinations and the overall impacts to our condensed consolidated financial statements were not considered to be material, either individually or in the aggregate. The fair value associated with definite-lived intangible assets from the 2017 Acquisitions was $297.9 million , comprised of $39.7 million in technology, $18.8 million in trademarks, $231.1 million in customer relationships and $8.3 million primarily consisting of favorable contracts. The total fair value of consideration paid or payable on the 2017 Acquisitions was $539.2 million , including contingent consideration which had a fair value of $5.7 million . At June 30, 2017 , we have not finalized the purchase accounting related to the 2017 Acquisitions and these amounts represent preliminary values. For our business acquisitions completed after June 30, 2016, including the 2017 Acquisitions, we expect to finalize our purchase accounting during the respective measurement periods, which will be no later than one year following their applicable closing dates. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS Goodwill The following table shows changes in the carrying amount of goodwill from December 31, 2016 to June 30, 2017 by reportable segment: Performance Coatings Transportation Coatings Total December 31, 2016 $ 889.4 $ 74.7 $ 964.1 Goodwill from acquisitions 182.1 — 182.1 Foreign currency translation 68.3 4.8 73.1 June 30, 2017 $ 1,139.8 $ 79.5 $ 1,219.3 Identifiable Intangible Assets The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average amortization periods (years) Technology $ 479.3 $ (184.5 ) $ 294.8 10.4 Trademarks - indefinite-lived 291.1 — 291.1 Indefinite Trademarks - definite-lived 76.3 (14.2 ) 62.1 14.4 Customer relationships 929.9 (149.6 ) 780.3 19.1 Other 9.2 (1.0 ) 8.2 4.7 Total $ 1,785.8 $ (349.3 ) $ 1,436.5 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average amortization periods (years) Technology $ 417.1 $ (153.6 ) $ 263.5 10.2 Trademarks—indefinite-lived 273.2 — 273.2 Indefinite Trademarks—definite-lived 55.0 (11.4 ) 43.6 14.8 Customer relationships 672.6 (123.3 ) 549.3 18.7 Other 2.4 (1.7 ) 0.7 4.6 Total $ 1,420.3 $ (290.0 ) $ 1,130.3 The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2017 and each of the succeeding five years is: Remainder of 2017 $ 56.1 2018 $ 104.0 2019 $ 104.0 2020 $ 103.6 2021 $ 102.5 2022 $ 84.0 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2017 | |
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 it was considered probable that employees were entitled to termination benefits and the amounts could be reasonably estimated. We have incurred costs in connection with involuntary termination benefits associated with our corporate-related initiatives, including our transition to a standalone entity and cost-saving opportunities associated with our Fit For Growth and Axalta Way initiatives. During the three and six months ended June 30, 2017 , we incurred restructuring costs of $0.4 million and $1.4 million , respectively. During the three and six months ended June 30, 2016 , we incurred restructuring costs of $5.1 million and $5.6 million , respectively. These amounts are recorded within selling, general and administrative expenses in the condensed consolidated statements of operations. The payments associated with these actions are expected to be substantially completed within 12 to 15 months from the balance sheet date. The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2016 to June 30, 2017 : 2017 Activity Balance at December 31, 2016 $ 66.1 Expense recorded 1.4 Payments made (14.6 ) Foreign currency impacts 4.8 Venezuela deconsolidation impact (1.5 ) Balance at June 30, 2017 $ 56.2 Restructuring charges incurred during the fourth quarter ended December 31, 2016 included actions to reduce operational costs through activities to rationalize our manufacturing footprint. The impact to earnings from accelerated depreciation related to these manufacturing assets for the three and six months ended June 30, 2017 was $2.1 million and $4.3 million , respectively. At June 30, 2017, we identified an impairment indicator associated with certain of these manufacturing assets resulting from a significant decrease in market price based on information obtained from the subsequent sale and leaseback of the asset during July 2017, resulting in an impairment loss of $3.2 million recorded within other expense, net. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases At June 30, 2017 , we had recorded $27.6 million within property, plant and equipment representing our landlord's estimated costs incurred to construct a property under a separate build-to-suit lease arrangement. This lease commenced construction during 2015 with landlord's construction expected to be completed during 2017. The construction related to the build-to-suit lease has an estimated total cost of $37.8 million . 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 against us, or awards against DuPont for which we assumed the liabilities through the Acquisition. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time. The potential effects, if any, on the 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. |
Long-term Employee Benefits
Long-term Employee Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Long-term Employee Benefits | LONG-TERM EMPLOYEE BENEFITS Components of Net Periodic Benefit Cost The following table sets forth the components of net periodic benefit cost for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 2.1 $ 2.6 $ 4.2 $ 5.1 Interest cost 3.3 3.9 6.7 7.8 Expected return on plan assets (3.5 ) (3.4 ) (7.0 ) (6.6 ) Amortization of actuarial loss, net 0.3 0.2 0.8 0.1 Net periodic benefit cost $ 2.2 $ 3.3 $ 4.7 $ 6.4 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION During the three and six months ended June 30, 2017 , we recogni ze d $10.9 million and $21.3 million , respectively, in stock-based compensation expense which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized a tax benefit of $3.4 million and $6.3 million for the three and six months ended June 30, 2017 , respectively. Forfeitures are recorded in the period they occur. During the three and six months ended June 30, 2016 , we recogni zed $ 11.4 million and $ 21.6 million , respectively, in stock-based compensation expense which was allocated to cost of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized a tax benefit of $1.6 million and $5.5 million for the three and six months ended June 30, 2016 , respectively. 2017 Activity In 2017, we granted non-qualified service-based stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units to certain employees and directors. All awards were granted under the Company's 2014 Incentive Award Plan (the "2014 Plan"). A summary of stock option award activity as of and for the six months ended June 30, 2017 is presented below. Stock Options Awards/Units (in millions) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (years) Outstanding at January 1, 2017 9.6 $ 14.40 Granted 0.9 $ 29.52 Exercised (1.2 ) $ 10.54 Forfeited (0.1 ) $ 28.10 Outstanding at June 30, 2017 9.2 $ 16.23 Vested and expected to vest at June 30, 2017 9.2 $ 16.23 $ 145.1 6.91 Exercisable at June 30, 2017 7.2 $ 13.15 $ 136.5 6.37 Cash received by the Company upon exercise of options for the six months ended June 30, 2017 was $12.9 million . Tax benefits on these exercises were $9.3 million . At June 30, 2017 , there is $7.6 million of unrecognized expense relating to unvested stock options that is expected to be amortized over a weighted average period of 2.2 years. Restricted Stock Awards and Restricted Stock Units Awards (millions) Weighted-Average Fair Value Outstanding at January 1, 2017 2.3 $ 29.18 Granted 0.7 $ 30.17 Vested (0.9 ) $ 30.05 Forfeited (0.1 ) $ 26.26 Outstanding at June 30, 2017 2.0 $ 29.14 Tax benefits on the vesting of restricted stock during the six months ended June 30, 2017 were $11.2 million . At June 30, 2017 , there is $29.9 million of unamortized expense relating to unvested restricted stock and restricted stock units that is expected to be amortized over a weighted average period of 2.1 years . Performance Stock Awards and Performance Share Units Awards (millions) Weighted-Average Fair Value Outstanding at January 1, 2017 0.3 $ 27.74 Granted 0.3 $ 38.11 Vested — $ — Forfeited — $ — Outstanding at June 30, 2017 0.6 $ 31.11 At June 30, 2017 , there is $14.7 million of unamortized expense relating to unvested performance stock awards and performance share units that is expected to be amortized over a weighted average period of 2.4 years. |
Other Expense, Net
Other Expense, Net | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | OTHER EXPENSE, NET Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Foreign exchange losses, net $ 6.0 $ 18.0 $ 4.8 $ 25.5 Impairments of property 3.2 10.5 3.2 10.5 Debt extinguishment and refinancing related costs 12.4 2.3 12.4 2.3 Other miscellaneous (income) expense, net (0.4 ) 2.0 (0.8 ) 2.5 Total $ 21.2 $ 32.8 $ 19.6 $ 40.8 Net exchange losses for the three and six months ended June 30, 2017 and 2016 consists of the impacts of our Euro borrowings combined with the impacts of the remeasurement of intercompany transactions denominated in currencies different from the functional currency of the relevant subsidiary. Our Venezuelan subsidiary contributed to the net exchange losses for all periods. These losses for the three and six months ended June 30, 2017 were $0.3 million and $1.8 million , respectively, and $15.6 million and $22.7 million for the three and six months ended June 30, 2016, respectively. Debt extinguishment and refinancing related costs include third-party fees incurred in conjunction with the refinancing of the 2023 Dollar Term Loans during the three and six months ended June 30, 2017 , as well as the loss on extinguishment associated with the 2016 write-off of unamortized deferred financing costs and original issue discounts for the three and six months ended June 30, 2016, as discussed further in Note 15. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rates for the six months ended June 30, 2017 and 2016 are as follows: Six Months Ended June 30, 2017 2016 Effective Tax Rate 29.2 % 26.4 % The higher effective tax rate for the six months ended June 30, 2017 was primarily due to the pre-tax charge of $70.9 million related to the deconsolidation of our Venezuelan subsidiary, as it was non-deductible. This adjustment was partially offset by the favorable impact of the benefits associated with current year excess tax benefits related to stock-based compensation of $8.9 million compared to $4.4 million for the six months ended June 30, 2017 and 2016 , respectively, as well as the net favorable impact of earnings where the statutory rate is lower than the U.S. Federal statutory rate. The effective tax rate for the six months ended June 30, 2017 differs from the U.S. Federal statutory rate due to various items that impacted the effective rate both favorably and unfavorably. We recorded favorable adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate, currency exchange losses and current year excess tax benefits related to stock-based compensation. These adjustments were offset by the unfavorable impact of the Venezuelan deconsolidation charge, pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized and non-deductible expenses and interest. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | NET INCOME (LOSS) PER COMMON SHARE Basic net income per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the hypothetical exercise of outstanding stock options and vesting of restricted shares and performance shares. A reconciliation of our basic and diluted net income per common share is as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2017 2016 (1) 2017 2016 (1) Net income (loss) to common shareholders $ (20.8 ) $ 50.7 $ 43.3 $ 82.6 Basic weighted average shares outstanding 240.9 237.7 240.4 237.4 Diluted weighted average shares outstanding 240.9 244.3 246.5 243.8 Net income (loss) per common share: Basic net income (loss) per share $ (0.09 ) $ 0.21 $ 0.18 $ 0.35 Diluted net income (loss) per share $ (0.09 ) $ 0.21 $ 0.18 $ 0.34 (1) Net income per common share for the three and six months ended June 30, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 1, which increased diluted weighted average shares outstanding by 1.9 million shares and 1.8 million shares, respectively. The number of anti-dilutive shares that have been excluded in the computation of diluted net income (loss) per share for the three and six months ended June 30, 2017 were 11.6 million and 1.7 million , respectively. The number of anti-dilutive shares that have been excluded in the computation of diluted net income (loss) per share for the three and six months ended June 30, 2016 were 1.1 million and 1.5 million , respectively. |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, Net | ACCOUNTS AND NOTES RECEIVABLE, NET June 30, 2017 December 31, 2016 Accounts receivable - trade, net $ 840.6 $ 640.4 Notes receivable 30.7 68.7 Other 90.1 92.8 Total $ 961.4 $ 801.9 Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable - trade, net are net of allowances of $15.5 million and $13.7 million at June 30, 2017 and December 31, 2016 , respectively. Bad debt expense, within selling, general and administration expenses for the three and six months ended June 30, 2017 , was $1.7 million and $2.4 million , respectively, and $1.0 million and $1.1 million for the three and six months ended June 30, 2016 , respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES June 30, 2017 December 31, 2016 Finished products $ 332.3 $ 315.2 Semi-finished products 93.1 87.5 Raw materials and supplies 154.7 127.0 Total $ 580.1 $ 529.7 Stores and supplies inventories of $20.9 million and $20.2 million at June 30, 2017 and December 31, 2016 , respectively, were valued under the weighted average cost method. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Depreciation expense amounted to $44.7 million and $88.0 million for the three and six months ended June 30, 2017 , respectively, and $43.9 million and $85.6 million for the three and six months ended June 30, 2016 , respectively. June 30, 2017 December 31, 2016 Property, plant and equipment $ 2,098.3 $ 1,933.0 Accumulated depreciation (727.6 ) (617.3 ) Property, plant, and equipment, net $ 1,370.7 $ 1,315.7 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Borrowings are summarized as follows: June 30, 2017 December 31, 2016 2024 Dollar Term Loans $ 2,000.0 $ — 2023 Dollar Term Loans — 1,545.0 2023 Euro Term Loans 454.7 417.6 2024 Dollar Senior Notes 500.0 500.0 2024 Euro Senior Notes 382.7 349.7 2025 Euro Senior Notes 514.1 469.8 Short-term and other borrowings 59.1 39.8 Unamortized original issue discount (9.9 ) (10.0 ) Unamortized deferred financing costs (41.8 ) (48.0 ) $ 3,858.9 $ 3,263.9 Less: Short term borrowings $ 10.9 $ 8.3 Current portion of long-term borrowings 24.6 19.6 Long-term debt $ 3,823.4 $ 3,236.0 Senior Secured Credit Facilities, as amended On February 3, 2014 (the "Second Amendment Effective Date"), Axalta Coating Systems Dutch B B.V. ("Dutch B B.V."), as "Dutch Borrower", and its indirect 100% owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. ("Axalta US Holdings"), as "U.S. Borrower", executed the second amendment to the Credit Agreement (the "Second Amendment"). The Second Amendment (i) converted all of the outstanding Dollar Term Loans ( $2,282.8 million ) into a new class of term loans (the "2020 Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans ( €397.0 million ) into a new class of term loans (the "2020 Euro Term Loans" and, together with the 2020 Dollar Term Loans, the "2020 Term Loans"). On December 15, 2016 (the "Fourth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fourth amendment to the Credit Agreement (the "Fourth Amendment"). The Fourth Amendment (i) converted all of the outstanding 2020 Dollar Term Loans ( $1,775.3 million ) into a new tranche of term loans issued at par with principal of $1,545.0 million (the "2023 Dollar Term Loans"), (ii) converted all of the outstanding 2020 Euro Term Loans ( €199.0 million ) into a new tranche of term loans issued at par with principal of €400.0 million (the "2023 Euro Term Loans" and, together with the 2023 Dollar Term Loans, the "2023 Term Loans"). On June 1, 2017 (the "Fifth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fifth amendment to the Credit Agreement (the "Fifth Amendment"). The Fifth Amendment converted all of the outstanding 2023 Dollar Term Loans ( $1,541.1 million ) into a new tranche of term loans with principal of $2,000.0 million (the "2024 Dollar Term Loans"), together with the 2023 Euro Term Loans, the "Current Terms Loans", and with the Revolving Credit Facility (as defined herein, the "Senior Secured Credit Facilities"). The 2024 Dollar Term Loans were issued at 99.875% of par, or a $2.5 million discount. Interest was and is payable quarterly on both the 2023 Term Loans and Current Term Loans. The 2024 Dollar Term Loans are subject to a floor of zero plus an applicable rate of 2.00% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 1.00% per annum for Base Rate Loans as defined in the Credit Agreement. Prior to the Fifth Amendment, interest on the 2023 Dollar Term Loans was subject to a floor of 0.75% , plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such 2023 Dollar Term Loans was 2.50% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 1.50% per annum for Base Rate Loans as defined in the Credit Agreement. The 2023 Euro Term Loans are also subject to a floor of 0.75% , plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such New Euro Term Loans is 2.25% per annum for Eurocurrency Rate Loans. The 2023 Euro Term Loans may not be Base Rate Loans. Prior to the Fourth Amendment, interest on the 2020 Dollar Term Loans was subject to a floor of 1.00% , plus an applicable rate. The applicable rate for such 2020 Dollar Term Loans was 3.00% per annum for Eurocurrency Rate Loans and 2.00% per annum for Base Rate Loans. The 2020 Euro Term Loans were also subject to a floor of 1.00% , plus an applicable rate. The applicable rate for such 2020 Euro Term Loans was 3.25% per annum for Eurocurrency Rate Loans. The 2020 Euro Term Loans were not to be Base Rate Loans. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans was subject to a further 25 basis point reduction if the Total Net Leverage Ratio was less than or equal to 4.50 :1.00. During the third quarter of 2014, our Total Net Leverage Ratio was less than 4.50 :1.00. Consequently, the applicable rates were changed to 2.75% for the 2020 Dollar Term Loans and 3.00% for the 2020 Euro Term Loans through the Fourth Amendment Effective Date. Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $75.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25 :1.00 or 3.50 :1.00, respectively) of Excess Cash Flow. The Senior Secured Credit Facilities are secured by substantially all assets of Axalta Coating Systems Dutch A B.V. ("Dutch A B.V.") and the guarantors. The 2023 Euro Term Loans mature on February 1, 2023 and the 2024 Dollar Term Loans mature on June 1, 2024. Principal is paid quarterly on both the 2023 Euro Term Loans and the 2024 Dollar Term Loans based on 1% per annum of the original principal amount outstanding on the most recent amendment date with the unpaid balance due at maturity. We are subject to customary negative covenants in addition to the First Lien Leverage Ratio financial covenant for purposes of determining any Excess Cash Flow mandatory payment. Further, the Senior Secured Credit Facilities, among other things, include customary restrictions (subject to certain exceptions) on the Company's ability to incur certain indebtedness, grant certain liens, make certain investments, declare or pay certain dividends, or repurchase shares of the Company's common stock. As of June 30, 2017 , the Company is in compliance with all covenants under the Senior Secured Credit Facilities. Revolving Credit Facility On August 1, 2016 (the "Third Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the third amendment to the Credit Agreement (the "Third Amendment"). The Third Amendment impacted the revolving credit facility under the Senior Secured Credit Facilities (the "Revolving Credit Facility") by (i) extending the maturity of the Revolving Credit Facility to five years from the Third Amendment Effective Date, or August 1, 2021, provided that such date will be accelerated to the date that is 91 days prior to the maturity of the term loans borrowed under the Credit Agreement if the maturity of such term loans precedes the maturity of the Revolving Credit Facility, (ii) decreasing the applicable interest margins, and (iii) amending the financial covenant applicable to the Revolving Credit Facility to be applicable only when greater than 30% (previously 25% ) of the Revolving Credit Facility (including letters of credit not cash collateralized to at least 103% ) is outstanding at the end of the fiscal quarter. If such conditions are met, the First Lien Net Leverage Ratio (as defined by the Credit Agreement) at the end of the quarter is required to be greater than 5.50 :1.00. At June 30, 2017 , the financial covenant is not applicable as there were no borrowings. Under the Third Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of zero for Adjusted Eurocurrency Rate Loans (as defined in the Credit Agreement) plus an applicable rate of 2.75% (previously 3.50% ) subject to an additional step-down to 2.50% or 2.25% , if the First Lien Net Leverage Ratio falls below 3.00 :1.00 or 2.50 :1.00, respectively. For Base Rate Loans, the interest is subject to a floor of the greater of the federal funds rate plus 0.50% , the Prime Lending Rate or an Adjusted Eurocurrency Rate plus 1% , plus an applicable rate of 1.75% (previously 2.50% ), subject to an additional step-down to 1.50% or 1.25% , if the First Lien Net Leverage Ratio falls below 3.00 :1.00 and 2.50 :1.00, respectively. Under circumstances described in the Credit Agreement, we may increase available revolving or term facility borrowings by up to $400.0 million plus an additional amount subject to the Company not exceeding a maximum first lien leverage ratio described in the Credit Agreement. There have been no borrowings on the Revolving Credit Facility since the issuance of the Senior Secured Credit Facilities. At June 30, 2017 and December 31, 2016 , letters of credit issued under the Revolving Credit Facility totaled $21.8 million and $21.3 million which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $378.2 million and $378.7 million at June 30, 2017 and December 31, 2016 , respectively. Significant Terms of the 2021 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 in aggregate principal amount of 7.375% senior unsecured notes due 2021 (the "2021 Dollar Senior Notes") and related guarantees thereof. Additionally, the Issuers issued €250.0 million in aggregate principal amount of 5.750% senior secured notes due 2021 (the "2021 Euro Senior Notes" and, together with the 2021 Dollar Senior Notes, the "2021 Senior Notes") and related guarantees thereof. The 2021 Senior Notes were unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries. Issuance of New Senior Notes and Redemption of 2021 Senior Notes On August 16, 2016, Axalta Coating Systems, LLC ("New U.S. Issuer"), issued $500.0 million in aggregate principal amount of 4.875% Senior Unsecured Notes (the “2024 Dollar Senior Notes”) and €335.0 million in aggregate principal amount of 4.250% Senior Unsecured Notes (the “2024 Euro Senior Notes”), each due August 2024 (collectively the “2024 Senior Notes”), for the primary purpose of redeeming the 2021 Dollar Senior Notes. Consistent with the terms of the 2021 Dollar Senior Notes, we extinguished the principal at a redemption price equal to 105.531% . The 2024 Senior Notes are fully and unconditionally guaranteed by Dutch B B.V. (“Parent Guarantor”). In addition, on September 27, 2016, the Dutch Issuer issued €450.0 million in aggregate principal amount of 3.750% Euro Senior Unsecured Notes due January 2025 (the “2025 Euro Senior Notes” and with the 2024 Senior Notes, the “New Senior Notes”, each of which is described in detail below) for the primary purpose of redeeming the 2021 Euro Senior Notes and the partial prepayment of the 2020 Euro Term Loans. Consistent with the original terms of the 2021 Euro Senior Notes, we extinguished the principal at a redemption price equal to 104.313% . The indentures governing the New Senior Notes contain covenants that restrict the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates. i) 2024 Dollar Senior Notes The 2024 Dollar Senior Notes were issued at 99.951% of par, or a $2.0 million discount, and are due August 15, 2024. The 2024 Dollar Senior Notes bear interest at 4.875% which is payable semi-annually on February 15 and August 15. We have the option to redeem all or part of the 2024 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated: Period 2024 Dollar Senior Notes Percentage 2019 103.656 % 2020 102.438 % 2021 101.219 % 2022 and thereafter 100.000 % Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Dollar Senior Notes) at a redemption price of 104.875% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption. Upon the occurrence of certain events constituting a change of control, holders of the 2024 Dollar Senior Notes have the right to require us to repurchase all or any part of the 2024 Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. The 2024 Dollar Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes. The indebtedness issued through the 2024 Dollar Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness. (ii) 2024 Euro Senior Notes The 2024 Euro Senior Notes were issued at par and are due August 15, 2024. The 2024 Euro Senior Notes bear interest at 4.250% which is payable semi-annually on February 15 and August 15. We have the option to redeem all or part of the 2024 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated: Period 2024 Euro Senior Notes Percentage 2019 103.188 % 2020 102.125 % 2021 101.063 % 2022 and thereafter 100.000 % Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Euro Senior Notes) at a redemption price of 104.250% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption. Upon the occurrence of certain events constituting a change of control, holders of the 2024 Euro Senior Notes have the right to require us to repurchase all or any part of the 2024 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. The 2024 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes. The indebtedness issued through the 2024 Euro Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness. (iii) 2025 Euro Senior Notes The 2025 Euro Senior Notes were issued at par and are due January 15, 2025. The 2025 Euro Senior Notes bear interest at 3.750% which is payable semi-annually on January 15 and July 15. We have the option to redeem all or part of the 2025 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after January 15 of the years indicated: Period 2025 Euro Senior Notes Percentage 2019 102.813 % 2020 101.875 % 2021 100.938 % 2022 and thereafter 100.000 % Notwithstanding the foregoing, at any time and from time to time prior to January 15, 2020, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2025 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2025 Euro Senior Notes) at a redemption price of 103.750% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption. Upon the occurrence of certain events constituting a change of control, holders of the 2025 Euro Senior Notes have the right to require us to repurchase all or any part of the 2025 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. The 2025 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Dutch Issuer’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes. The indebtedness issued through the 2025 Euro Senior Notes is senior unsecured indebtedness of the Dutch Issuer, is senior in right of payment to all future subordinated indebtedness of the Dutch Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the Dutch Issuer and guarantors. The 2025 Euro Senior Notes are effectively subordinated to any secured indebtedness of the Dutch Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness. Future repayments Below is a schedule of required future repayments of all borrowings outstanding at June 30, 2017 . Remainder of 2017 $ 23.4 2018 26.2 2019 25.4 2020 25.3 2021 25.2 Thereafter 3,750.8 $ 3,876.3 The table above excludes $34.3 million of debt associated with our build-to-suit lease arrangement and our sale-leaseback financing that will not be settled with cash. |
Fair Value Accounting
Fair Value Accounting | 6 Months Ended |
Jun. 30, 2017 | |
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 at June 30, 2017 and December 31, 2016 was $4.4 million and $4.4 million , respectively. The fair value was based upon either Level 1 inputs when the securities are actively traded with quoted market prices or Level 2 when the securities are not frequently traded. Long-term borrowings - The fair values of the 2024 Dollar Senior Notes, 2024 Euro Senior Notes and 2025 Euro Senior Notes at June 30, 2017 were $516.3 million , $406.6 million and $539.8 million , respectively. The fair values at December 31, 2016 were $500.0 million , $363.8 million and $472.2 million , respectively. The estimated fair values of these notes are based on recent trades, as reported by a third party pricing service. Due to the infrequent trades of the New Senior Notes, these inputs are considered to be Level 2 inputs. The fair values of the 2024 Dollar Term Loans and the 2023 Euro Term Loans at June 30, 2017 were $2,007.5 million and $460.9 million , respectively. The fair values of the 2023 Dollar Term Loans and the 2023 Euro Term Loans at December 31, 2016 were $1,560.5 million and $421.8 million , respectively. The estimated fair values of the 2024 Dollar Term Loans and the 2023 Euro Loans are based on recent trades, as reported by a third-party pricing service. Due to the infrequent trades of the Current Term Loans, these inputs are considered to be Level 2 inputs. Fair value of contingent consideration The fair value of contingent consideration associated with acquisitions completed in current and prior years are valued at each balance sheet date, until amounts become payable, with adjustments recorded within selling, general and administrative expenses on the condensed consolidated statement of operations. The fair value of contingent consideration at June 30, 2017 was $10.1 million . During the three and six months ended June 30, 2017 , the Company recorded gains of $2.2 million and $3.9 million associated with the changes to fair value, respectively. The fair value of contingent consideration at December 31, 2016 was $10.0 million . Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs. Derivative Instruments Qualifying and Designated as Cash Flow Hedges During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps are in place until September 29, 2017 . During the three months ended March 31, 2017, we entered into three 1.5% interest rate caps with aggregate notional amounts totaling $600 million to hedge the variable interest rate exposures on our 2024 Dollar Term Loans. These caps are effective beginning September 30, 2017 through December 31, 2019 and include an aggregate deferred premium of $8.6 million which will be paid quarterly over the term of the cap. 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 sheets: June 30, 2017 December 31, 2016 Prepaid and other assets: Interest rate swaps $ 0.5 $ 0.1 Total assets $ 0.5 $ 0.1 Other accrued liabilities: Interest rate swaps $ 0.1 $ 0.8 Interest rate caps $ 2.5 $ — Other liabilities Interest rate caps $ 1.7 $ — Total liabilities $ 4.3 $ 0.8 For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of 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 period earnings. The following tables set forth the locations and amounts recognized during the three and six months ended June 30, 2017 and 2016 for these cash flow hedges. Amount of Location of (Gain) Loss Reclassified from Amount of OCI to Income (Effective Portion) Location of Amount of in Income on Derivatives Derivatives in Cash Flow Hedging Relationships Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Interest rate contracts $ 2.2 $ (0.5 ) Interest expense, net $ 0.2 $ 1.6 Interest expense, net $ 0.4 $ 0.9 Amount of Location of (Gain) Loss Reclassified from Amount of Location of Amount of Derivatives in Cash Flow Hedging Relationships Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Interest rate contracts $ 3.7 $ 1.7 Interest expense, net $ 0.7 $ 3.2 Interest expense, net $ 2.0 $ 3.3 Derivative Instruments Not Designated as Cash Flow Hedges We periodically enter into foreign currency forward contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other (income) expense, net in the condensed consolidated statement of operations. During the year ended December 31, 2013, we purchased a € 300.0 million 1.5% interest rate cap on our Euro Term 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. During the three months ended March 31, 2017, we purchased a 1.25% interest rate cap with a notional amount of €388.0 million to hedge the variable interest rate exposures on our 2023 Euro Term Loans. We paid a premium equal to $0.6 million for the interest rate cap which is effective beginning September 30, 2017 through December 31, 2019 . Changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense. The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheets: June 30, 2017 December 31, 2016 Prepaid and other assets: Foreign currency contracts $ — $ 0.1 Other assets Interest rate caps $ 0.1 $ — Total assets $ 0.1 $ 0.1 Other accrued liabilities: Foreign currency contracts $ 2.0 $ 0.5 Total liabilities $ 2.0 $ 0.5 Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows: Three Months Ended June 30, Six Months Ended June 30, Derivatives Not Designated as Hedging Instruments under ASC 815 Location of (Gain) Loss Recognized in Income on Derivatives 2017 2016 2017 2016 Interest rate caps Interest expense $ 0.1 $ — $ 0.4 $ — Foreign currency forward contracts Other expense, net $ 4.8 $ 1.6 $ 7.2 $ 4.0 |
Segments
Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information. We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines. Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets within this segment are refinish and industrial. Through our Transportation Coatings segment, we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets within this segment are light vehicle and commercial vehicle. Our business serves four end-markets globally as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Performance Coatings Refinish $ 421.2 $ 447.3 $ 809.8 $ 827.6 Industrial 241.7 183.3 439.5 347.6 Total Net sales Performance Coatings 662.9 630.6 1,249.3 1,175.2 Transportation Coatings Light Vehicle 334.3 344.4 674.3 673.8 Commercial Vehicle 91.3 88.6 172.7 171.8 Total Net sales Transportation Coatings 425.6 433.0 847.0 845.6 Total Net sales $ 1,088.5 $ 1,063.6 $ 2,096.3 $ 2,020.8 Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. Three Months Ended June 30, 2017 2016 Performance Coatings Transportation Coatings Total Performance Coatings Transportation Coatings Total Net sales (1) $ 662.9 $ 425.6 $ 1,088.5 $ 630.6 $ 433.0 $ 1,063.6 Equity in earnings in unconsolidated affiliates 0.1 0.1 0.2 0.1 — 0.1 Adjusted EBITDA (2) 146.8 80.4 227.2 155.8 95.3 251.1 Investment in unconsolidated affiliates 3.0 11.8 14.8 3.9 11.2 15.1 Six Months Ended June 30, 2017 2016 Performance Transportation Total Performance Transportation Total Net sales (1) $ 1,249.3 $ 847.0 $ 2,096.3 $ 1,175.2 $ 845.6 $ 2,020.8 Equity in earnings in unconsolidated affiliates 0.2 0.2 0.4 0.2 0.1 0.3 Adjusted EBITDA (2) 263.7 166.6 430.3 267.5 180.0 447.5 Investment in unconsolidated affiliates 3.0 11.8 14.8 3.9 11.2 15.1 (1) The Company has no intercompany sales between segments. (2) The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Income (loss) before income taxes $ (9.4 ) $ 68.9 $ 66.4 $ 115.7 Interest expense, net 35.6 47.8 71.4 97.9 Depreciation and amortization 84.9 78.6 167.3 154.6 EBITDA 111.1 195.3 305.1 368.2 Debt extinguishment and refinancing related costs (a) 12.4 2.3 12.4 2.3 Foreign exchange remeasurement losses (b) 6.0 18.0 4.8 25.5 Long-term employee benefit plan adjustments (c) 0.1 0.7 0.5 1.3 Termination benefits and other employee related costs (d) — 7.0 0.8 8.9 Consulting and advisory fees (e) — 2.6 (0.1 ) 5.6 Transition-related costs (f) 3.9 — 3.9 — Offering and transactional costs (g) 6.6 1.4 5.6 1.4 Stock-based compensation (h) 10.9 11.4 21.3 21.6 Other adjustments (i) 2.6 1.9 2.8 3.7 Dividends in respect of noncontrolling interest (j) (0.5 ) — (0.9 ) (1.5 ) Deconsolidation impacts and impairments (k) 74.1 10.5 74.1 10.5 Adjusted EBITDA $ 227.2 $ 251.1 $ 430.3 $ 447.5 (a) In April 2016, we prepaid $100.0 million of the outstanding principal on the 2020 Dollar Term Loans and recorded a non-cash loss on extinguishment of $2.3 million for the three and six months ended June 30, 2016. In connection with the refinancing of our Dollar Term Loans during the three and six months ended June 30, 2017, we recorded losses of $12.4 million . We do not consider these to be indicative of our ongoing operating performance. (b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of impacts associated with our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $0.3 million and $1.8 million for the three and six months ended June 30, 2017, respectively, and losses of $15.6 million and $22.7 million for the three and six months ended June 30, 2016, respectively. (c) Eliminates the non-cash, non-service cost components of long-term employee benefit costs. (d) Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. (e) Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. (f) Represents integration costs related to the acquisition of the Industrial Wood business that was a carve-out business from Valspar. These amounts are not considered indicative of our ongoing operating performance. (g) Represents acquisition-related expenses, including changes in the fair value of contingent consideration, as well as costs associated with the 2016 secondary offerings of our common shares by Carlyle, both of which are not considered indicative of our ongoing operating performance. (h) Represents non-cash costs associated with stock-based compensation. (i) Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of ongoing operations, including equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments and non-cash fair value inventory adjustments associated with our business combinations. (j) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of the entities on Axalta's financial statements. (k) In conjunction with the deconsolidation of our Venezuelan subsidiary during the three and six months ended June 30, 2017, we recorded a loss on deconsolidation of $70.9 million . During the three and six months ended June 30, 2017 and 2016, we recorded non-cash impairment charges related to a manufacturing facility previously announced for closure of $3.2 million and to a real estate investment of $10.5 million , respectively. We do not consider these to be indicative of our ongoing operating performance. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS' EQUITY The following tables present the change in total shareholders’ equity for the six months ended June 30, 2017 and 2016 , respectively. Total Axalta Noncontrolling Total Balance at December 31, 2016 $ 1,125.1 $ 121.5 $ 1,246.6 Net income 43.3 3.7 47.0 Other comprehensive income, net of tax 71.9 1.0 72.9 Recognition of stock-based compensation 21.3 — 21.3 Exercise of stock options 12.9 — 12.9 Treasury share repurchase (8.3 ) — (8.3 ) Dividends paid to noncontrolling interests — (0.9 ) (0.9 ) Balance June 30, 2017 $ 1,266.2 $ 125.3 $ 1,391.5 Total Axalta Noncontrolling Interests Total Balance at December 31, 2015 $ 1,065.7 $ 67.5 $ 1,133.2 Cumulative effect of an accounting change (1) 43.9 — 43.9 Balance at January 1, 2016 1,109.6 67.5 1,177.1 Net income 82.6 2.5 85.1 Other comprehensive income, net of tax 0.4 (0.2 ) 0.2 Recognition of stock-based compensation 21.6 — 21.6 Exercise of stock options 5.9 — 5.9 Dividends paid to noncontrolling interests — (1.5 ) (1.5 ) Balance June 30, 2016 $ 1,220.1 $ 68.3 $ 1,288.4 (1) January 1, 2016 balance was adjusted at December 31, 2016 to reflect the impact of the adoption of ASU 2016-09, as discussed in Note 1. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE LOSS Unrealized Currency Translation Adjustments Pension Adjustments Unrealized Gain (Loss) on Securities Unrealized Gain (Losses) on Derivatives Accumulated Other Comprehensive Income (Loss) December 31, 2016 $ (292.2 ) $ (56.6 ) $ 0.4 $ (2.0 ) $ (350.4 ) Current year deferrals to AOCI 66.8 — (0.3 ) (2.4 ) 64.1 Reclassifications from AOCI to Net income (loss) — 6.2 — 1.6 7.8 Net Change 66.8 6.2 (0.3 ) (0.8 ) 71.9 June 30, 2017 $ (225.4 ) $ (50.4 ) $ 0.1 $ (2.8 ) $ (278.5 ) Included in the reclassification from AOCI to net income (loss) was a pension plan adjustment related to the deconsolidation of our Venezuelan subsidiary and the corresponding write-off of the accumulated actuarial loss on our Venezuela pension plan. This resulted in a decrease of $5.9 million in AOCI, inclusive of $2.6 million of tax benefits, and is discussed further in Note 21. The income tax benefit related to the changes in pension benefits for the six months ended June 30, 2017 was $0.5 million . The cumulative income tax benefit related to the adjustments for pension benefits at June 30, 2017 was $16.0 million . The income tax provision related to the change in the unrealized loss on derivatives for the six months ended June 30, 2017 was $0.5 million . The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at June 30, 2017 was $1.6 million . Unrealized Currency Translation Adjustments Pension Adjustments Unrealized Unrealized Gain (Loss) on Derivatives Accumulated December 31, 2015 $ (232.8 ) $ (33.4 ) $ 0.1 $ (3.2 ) $ (269.3 ) Current year deferrals to AOCI 2.3 — (0.3 ) (2.1 ) (0.1 ) Reclassifications from AOCI to Net income — (0.5 ) — 1.0 0.5 Net Change 2.3 (0.5 ) (0.3 ) (1.1 ) 0.4 June 30, 2016 $ (230.5 ) $ (33.9 ) $ (0.2 ) $ (4.3 ) $ (268.9 ) The income tax provision related to the changes in pension benefits for the six months ended June 30, 2016 was $0.6 million . The cumulative income tax benefit related to the adjustments for pension benefits at June 30, 2016 was $12.8 million . The income tax benefit related to the change in the unrealized loss on derivatives for the six months ended June 30, 2016 was $0.6 million . The cumulative income tax benefit related to the adjustment for unrealized loss on derivatives at June 30, 2016 was $2.5 million . |
Venezuela
Venezuela | 6 Months Ended |
Jun. 30, 2017 | |
Foreign Currency [Abstract] | |
Venezuela | VENEZUELA Due to the challenging economic conditions and political unrest in Venezuela, which have resulted in increasingly restrictive foreign exchange control regulations and reduced access to U.S. dollars through official currency exchange markets, during the three months ended June 30, 2017, we concluded there was an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. This lack of exchangeability restricted our Venezuelan subsidiary's ability to pay dividends or settle intercompany obligations, which severely limited our ability to realize the benefits from earnings of our Venezuelan operations and access the resulting liquidity provided by those earnings. Based on the fact that we believe this lack of exchangeability will continue, the continued political unrest, the recent drop in demand for our business and the expected losses we are forecasting for the foreseeable future, we concluded that, we no longer met the accounting criteria of control in order to continue consolidating our Venezuelan operations and began accounting for our investments in our Venezuelan subsidiary under the cost method of accounting. As a result of this change, we recorded a loss of $70.9 million on our condensed consolidated statement of operations. This loss was comprised of the subsidiary's net assets for $30.0 million , counterparty intercompany receivables with our Venezuela subsidiary for $35.0 million and unrealized actuarial losses associated with pension plans in accumulated other comprehensive income of $5.9 million . The value of the cost investment and all previous intercompany balances are now recorded at zero as of June 30, 2017. Further, our consolidated balance sheet and statement of operations will no longer include the results of our Venezuelan operations. We will recognize income only to the extent that we are paid for inventory we sell or receive cash dividends from our Venezuelan legal entity. Axalta has historically operated in Venezuela and our operations in Venezuela will continue for the foreseeable future. We continue to work proactively with the Venezuelan official agencies to ensure they understand our Venezuelan operations’ business needs and potential production opportunities. Prior to the deconsolidation, for the three and six months ended June 30, 2017 , our Venezuelan subsidiary's net sales represented $0.7 million and $2.5 million of our consolidated net sales, respectively, compared to net sales for the three and six months ended June 30, 2016 of $19.3 million and $29.2 million , respectively. During the three and six months ended June 30, 2016 we recorded an impairment loss of $10.5 million at our Venezuelan subsidiary to write down the carrying value of a real estate investment to its fair value. The method used to determine fair values for both assets included using Level 2 inputs in the form of a sale and purchase agreement for the certain manufacturing assets and observable market quotes from local real estate broker service firms for the Venezuela real estate investment. |
Recent Accounting Guidance (Pol
Recent Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy | Accounting Guidance Issued But Not Yet Adopted In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. We are in the process of working with our actuarial specialists in assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test requiring an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified in our reporting units. In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize the assets and liabilities arising from all leases (both finance and operating) on the balance sheet. In addition to this main provision, this standard included a number of additional changes to lease accounting. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows. At a minimum, total assets and total liabilities will increase in the period the ASU is adopted. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. This standard was initially intended to be effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the previous effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We are currently undertaking a process to quantify the impact that this standard will have on our consolidated financial statements and will provide further detail as we progress in our quantification, as well as our determination of the transition method to be adopted. We have reviewed our sales contracts and practices as compared to the new guidance and are working through implementation steps and continue to assess our procedural and policy requirements related to the provisions of this standard. In addition to the expanded disclosures regarding revenue, this guidance may impact timing of revenue recognition in certain arrangements within our Transportation Coatings segment in which we determine effective control over inventory has transferred to the customer upon delivery as compared to consumption under historical consignment arrangements. In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," which provides clarification around identifying performance obligations and the treatment of different licensing contracts. Additional standards related to revenue from contracts with customers have been issued during 2016 to provide narrow scope improvements and clarification. We have continued to assess the potential impact of the revised guidance on our financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.7 million , which was comprised of the following: June 1, 2017 Accounts and notes receivable—trade $ 23.3 Inventories 24.9 Prepaid expenses and other 0.2 Property, plant and equipment 23.0 Identifiable intangibles 254.2 Accounts payable (22.4 ) Other accrued liabilities (5.1 ) Net assets acquired before goodwill on acquisition 298.1 Goodwill on acquisition 132.6 Net assets acquired $ 430.7 |
Business Acquisition, Pro Forma Information | The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016: For the six months ended (in millions, except per share data) June 30, 2017 June 30, 2016 Net sales $ 2,197.6 $ 2,127.5 Net income $ 53.8 $ 82.1 Net income attributable to controlling interests $ 50.1 $ 79.6 Net income per share (Basic) $ 0.21 $ 0.34 Net income per share (Diluted) $ 0.20 $ 0.33 |
Goodwill and Identifiable Int30
Goodwill and Identifiable Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2016 to June 30, 2017 by reportable segment: Performance Coatings Transportation Coatings Total December 31, 2016 $ 889.4 $ 74.7 $ 964.1 Goodwill from acquisitions 182.1 — 182.1 Foreign currency translation 68.3 4.8 73.1 June 30, 2017 $ 1,139.8 $ 79.5 $ 1,219.3 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class | The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average amortization periods (years) Technology $ 479.3 $ (184.5 ) $ 294.8 10.4 Trademarks - indefinite-lived 291.1 — 291.1 Indefinite Trademarks - definite-lived 76.3 (14.2 ) 62.1 14.4 Customer relationships 929.9 (149.6 ) 780.3 19.1 Other 9.2 (1.0 ) 8.2 4.7 Total $ 1,785.8 $ (349.3 ) $ 1,436.5 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average amortization periods (years) Technology $ 417.1 $ (153.6 ) $ 263.5 10.2 Trademarks—indefinite-lived 273.2 — 273.2 Indefinite Trademarks—definite-lived 55.0 (11.4 ) 43.6 14.8 Customer relationships 672.6 (123.3 ) 549.3 18.7 Other 2.4 (1.7 ) 0.7 4.6 Total $ 1,420.3 $ (290.0 ) $ 1,130.3 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2017 and each of the succeeding five years is: Remainder of 2017 $ 56.1 2018 $ 104.0 2019 $ 104.0 2020 $ 103.6 2021 $ 102.5 2022 $ 84.0 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2016 to June 30, 2017 : 2017 Activity Balance at December 31, 2016 $ 66.1 Expense recorded 1.4 Payments made (14.6 ) Foreign currency impacts 4.8 Venezuela deconsolidation impact (1.5 ) Balance at June 30, 2017 $ 56.2 |
Long-term Employee Benefits (Ta
Long-term Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic benefit cost for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 2.1 $ 2.6 $ 4.2 $ 5.1 Interest cost 3.3 3.9 6.7 7.8 Expected return on plan assets (3.5 ) (3.4 ) (7.0 ) (6.6 ) Amortization of actuarial loss, net 0.3 0.2 0.8 0.1 Net periodic benefit cost $ 2.2 $ 3.3 $ 4.7 $ 6.4 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Roll Forward | A summary of stock option award activity as of and for the six months ended June 30, 2017 is presented below. Stock Options Awards/Units (in millions) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (years) Outstanding at January 1, 2017 9.6 $ 14.40 Granted 0.9 $ 29.52 Exercised (1.2 ) $ 10.54 Forfeited (0.1 ) $ 28.10 Outstanding at June 30, 2017 9.2 $ 16.23 Vested and expected to vest at June 30, 2017 9.2 $ 16.23 $ 145.1 6.91 Exercisable at June 30, 2017 7.2 $ 13.15 $ 136.5 6.37 |
Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward | Restricted Stock Awards and Restricted Stock Units Awards (millions) Weighted-Average Fair Value Outstanding at January 1, 2017 2.3 $ 29.18 Granted 0.7 $ 30.17 Vested (0.9 ) $ 30.05 Forfeited (0.1 ) $ 26.26 Outstanding at June 30, 2017 2.0 $ 29.14 |
Schedule of Performance Stock Roll Forward | Performance Stock Awards and Performance Share Units Awards (millions) Weighted-Average Fair Value Outstanding at January 1, 2017 0.3 $ 27.74 Granted 0.3 $ 38.11 Vested — $ — Forfeited — $ — Outstanding at June 30, 2017 0.6 $ 31.11 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Foreign exchange losses, net $ 6.0 $ 18.0 $ 4.8 $ 25.5 Impairments of property 3.2 10.5 3.2 10.5 Debt extinguishment and refinancing related costs 12.4 2.3 12.4 2.3 Other miscellaneous (income) expense, net (0.4 ) 2.0 (0.8 ) 2.5 Total $ 21.2 $ 32.8 $ 19.6 $ 40.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rates for the six months ended June 30, 2017 and 2016 are as follows: Six Months Ended June 30, 2017 2016 Effective Tax Rate 29.2 % 26.4 % |
Earnings (Loss) Per Common Sh36
Earnings (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of our basic and diluted net income per common share is as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2017 2016 (1) 2017 2016 (1) Net income (loss) to common shareholders $ (20.8 ) $ 50.7 $ 43.3 $ 82.6 Basic weighted average shares outstanding 240.9 237.7 240.4 237.4 Diluted weighted average shares outstanding 240.9 244.3 246.5 243.8 Net income (loss) per common share: Basic net income (loss) per share $ (0.09 ) $ 0.21 $ 0.18 $ 0.35 Diluted net income (loss) per share $ (0.09 ) $ 0.21 $ 0.18 $ 0.34 (1) Net income per common share for the three and six months ended June 30, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 1, which increased diluted weighted average shares outstanding by 1.9 million shares and 1.8 million shares, respectively. |
Accounts and Notes Receivable37
Accounts and Notes Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | June 30, 2017 December 31, 2016 Accounts receivable - trade, net $ 840.6 $ 640.4 Notes receivable 30.7 68.7 Other 90.1 92.8 Total $ 961.4 $ 801.9 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | June 30, 2017 December 31, 2016 Finished products $ 332.3 $ 315.2 Semi-finished products 93.1 87.5 Raw materials and supplies 154.7 127.0 Total $ 580.1 $ 529.7 |
Property, Plant and Equipment39
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | June 30, 2017 December 31, 2016 Property, plant and equipment $ 2,098.3 $ 1,933.0 Accumulated depreciation (727.6 ) (617.3 ) Property, plant, and equipment, net $ 1,370.7 $ 1,315.7 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Debt | Borrowings are summarized as follows: June 30, 2017 December 31, 2016 2024 Dollar Term Loans $ 2,000.0 $ — 2023 Dollar Term Loans — 1,545.0 2023 Euro Term Loans 454.7 417.6 2024 Dollar Senior Notes 500.0 500.0 2024 Euro Senior Notes 382.7 349.7 2025 Euro Senior Notes 514.1 469.8 Short-term and other borrowings 59.1 39.8 Unamortized original issue discount (9.9 ) (10.0 ) Unamortized deferred financing costs (41.8 ) (48.0 ) $ 3,858.9 $ 3,263.9 Less: Short term borrowings $ 10.9 $ 8.3 Current portion of long-term borrowings 24.6 19.6 Long-term debt $ 3,823.4 $ 3,236.0 |
Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at June 30, 2017 . Remainder of 2017 $ 23.4 2018 26.2 2019 25.4 2020 25.3 2021 25.2 Thereafter 3,750.8 $ 3,876.3 |
2024 Dollar Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption | We have the option to redeem all or part of the 2024 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated: Period 2024 Dollar Senior Notes Percentage 2019 103.656 % 2020 102.438 % 2021 101.219 % 2022 and thereafter 100.000 % |
2024 Euro Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption | We have the option to redeem all or part of the 2024 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated: Period 2024 Euro Senior Notes Percentage 2019 103.188 % 2020 102.125 % 2021 101.063 % 2022 and thereafter 100.000 % |
2025 Euro Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption | We have the option to redeem all or part of the 2025 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after January 15 of the years indicated: Period 2025 Euro Senior Notes Percentage 2019 102.813 % 2020 101.875 % 2021 100.938 % 2022 and thereafter 100.000 % |
Derivative Financial Instrume41
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 and six months ended June 30, 2017 and 2016 for these cash flow hedges. Amount of Location of (Gain) Loss Reclassified from Amount of OCI to Income (Effective Portion) Location of Amount of in Income on Derivatives Derivatives in Cash Flow Hedging Relationships Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Interest rate contracts $ 2.2 $ (0.5 ) Interest expense, net $ 0.2 $ 1.6 Interest expense, net $ 0.4 $ 0.9 Amount of Location of (Gain) Loss Reclassified from Amount of Location of Amount of Derivatives in Cash Flow Hedging Relationships Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Interest rate contracts $ 3.7 $ 1.7 Interest expense, net $ 0.7 $ 3.2 Interest expense, net $ 2.0 $ 3.3 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | : Three Months Ended June 30, Six Months Ended June 30, Derivatives Not Designated as Hedging Instruments under ASC 815 Location of (Gain) Loss Recognized in Income on Derivatives 2017 2016 2017 2016 Interest rate caps Interest expense $ 0.1 $ — $ 0.4 $ — Foreign currency forward contracts Other expense, net $ 4.8 $ 1.6 $ 7.2 $ 4.0 |
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 sheets: June 30, 2017 December 31, 2016 Prepaid and other assets: Interest rate swaps $ 0.5 $ 0.1 Total assets $ 0.5 $ 0.1 Other accrued liabilities: Interest rate swaps $ 0.1 $ 0.8 Interest rate caps $ 2.5 $ — Other liabilities Interest rate caps $ 1.7 $ — Total liabilities $ 4.3 $ 0.8 |
Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheets: June 30, 2017 December 31, 2016 Prepaid and other assets: Foreign currency contracts $ — $ 0.1 Other assets Interest rate caps $ 0.1 $ — Total assets $ 0.1 $ 0.1 Other accrued liabilities: Foreign currency contracts $ 2.0 $ 0.5 Total liabilities $ 2.0 $ 0.5 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Our business serves four end-markets globally as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Performance Coatings Refinish $ 421.2 $ 447.3 $ 809.8 $ 827.6 Industrial 241.7 183.3 439.5 347.6 Total Net sales Performance Coatings 662.9 630.6 1,249.3 1,175.2 Transportation Coatings Light Vehicle 334.3 344.4 674.3 673.8 Commercial Vehicle 91.3 88.6 172.7 171.8 Total Net sales Transportation Coatings 425.6 433.0 847.0 845.6 Total Net sales $ 1,088.5 $ 1,063.6 $ 2,096.3 $ 2,020.8 |
Schedule of Segment Reporting Information, by Segment | Three Months Ended June 30, 2017 2016 Performance Coatings Transportation Coatings Total Performance Coatings Transportation Coatings Total Net sales (1) $ 662.9 $ 425.6 $ 1,088.5 $ 630.6 $ 433.0 $ 1,063.6 Equity in earnings in unconsolidated affiliates 0.1 0.1 0.2 0.1 — 0.1 Adjusted EBITDA (2) 146.8 80.4 227.2 155.8 95.3 251.1 Investment in unconsolidated affiliates 3.0 11.8 14.8 3.9 11.2 15.1 Six Months Ended June 30, 2017 2016 Performance Transportation Total Performance Transportation Total Net sales (1) $ 1,249.3 $ 847.0 $ 2,096.3 $ 1,175.2 $ 845.6 $ 2,020.8 Equity in earnings in unconsolidated affiliates 0.2 0.2 0.4 0.2 0.1 0.3 Adjusted EBITDA (2) 263.7 166.6 430.3 267.5 180.0 447.5 Investment in unconsolidated affiliates 3.0 11.8 14.8 3.9 11.2 15.1 (1) The Company has no intercompany sales between segments. (2) The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows: |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliation of Adjusted EBITDA to income before income taxes follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Income (loss) before income taxes $ (9.4 ) $ 68.9 $ 66.4 $ 115.7 Interest expense, net 35.6 47.8 71.4 97.9 Depreciation and amortization 84.9 78.6 167.3 154.6 EBITDA 111.1 195.3 305.1 368.2 Debt extinguishment and refinancing related costs (a) 12.4 2.3 12.4 2.3 Foreign exchange remeasurement losses (b) 6.0 18.0 4.8 25.5 Long-term employee benefit plan adjustments (c) 0.1 0.7 0.5 1.3 Termination benefits and other employee related costs (d) — 7.0 0.8 8.9 Consulting and advisory fees (e) — 2.6 (0.1 ) 5.6 Transition-related costs (f) 3.9 — 3.9 — Offering and transactional costs (g) 6.6 1.4 5.6 1.4 Stock-based compensation (h) 10.9 11.4 21.3 21.6 Other adjustments (i) 2.6 1.9 2.8 3.7 Dividends in respect of noncontrolling interest (j) (0.5 ) — (0.9 ) (1.5 ) Deconsolidation impacts and impairments (k) 74.1 10.5 74.1 10.5 Adjusted EBITDA $ 227.2 $ 251.1 $ 430.3 $ 447.5 (a) In April 2016, we prepaid $100.0 million of the outstanding principal on the 2020 Dollar Term Loans and recorded a non-cash loss on extinguishment of $2.3 million for the three and six months ended June 30, 2016. In connection with the refinancing of our Dollar Term Loans during the three and six months ended June 30, 2017, we recorded losses of $12.4 million . We do not consider these to be indicative of our ongoing operating performance. (b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of impacts associated with our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $0.3 million and $1.8 million for the three and six months ended June 30, 2017, respectively, and losses of $15.6 million and $22.7 million for the three and six months ended June 30, 2016, respectively. (c) Eliminates the non-cash, non-service cost components of long-term employee benefit costs. (d) Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. (e) Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. (f) Represents integration costs related to the acquisition of the Industrial Wood business that was a carve-out business from Valspar. These amounts are not considered indicative of our ongoing operating performance. (g) Represents acquisition-related expenses, including changes in the fair value of contingent consideration, as well as costs associated with the 2016 secondary offerings of our common shares by Carlyle, both of which are not considered indicative of our ongoing operating performance. (h) Represents non-cash costs associated with stock-based compensation. (i) Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of ongoing operations, including equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments and non-cash fair value inventory adjustments associated with our business combinations. (j) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of the entities on Axalta's financial statements. (k) In conjunction with the deconsolidation of our Venezuelan subsidiary during the three and six months ended June 30, 2017, we recorded a loss on deconsolidation of $70.9 million . During the three and six months ended June 30, 2017 and 2016, we recorded non-cash impairment charges related to a manufacturing facility previously announced for closure of $3.2 million and to a real estate investment of $10.5 million , respectively. We do not consider these to be indicative of our ongoing operating performance. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following tables present the change in total shareholders’ equity for the six months ended June 30, 2017 and 2016 , respectively. Total Axalta Noncontrolling Total Balance at December 31, 2016 $ 1,125.1 $ 121.5 $ 1,246.6 Net income 43.3 3.7 47.0 Other comprehensive income, net of tax 71.9 1.0 72.9 Recognition of stock-based compensation 21.3 — 21.3 Exercise of stock options 12.9 — 12.9 Treasury share repurchase (8.3 ) — (8.3 ) Dividends paid to noncontrolling interests — (0.9 ) (0.9 ) Balance June 30, 2017 $ 1,266.2 $ 125.3 $ 1,391.5 Total Axalta Noncontrolling Interests Total Balance at December 31, 2015 $ 1,065.7 $ 67.5 $ 1,133.2 Cumulative effect of an accounting change (1) 43.9 — 43.9 Balance at January 1, 2016 1,109.6 67.5 1,177.1 Net income 82.6 2.5 85.1 Other comprehensive income, net of tax 0.4 (0.2 ) 0.2 Recognition of stock-based compensation 21.6 — 21.6 Exercise of stock options 5.9 — 5.9 Dividends paid to noncontrolling interests — (1.5 ) (1.5 ) Balance June 30, 2016 $ 1,220.1 $ 68.3 $ 1,288.4 (1) January 1, 2016 balance was adjusted at December 31, 2016 to reflect the impact of the adoption of ASU 2016-09, as discussed in Note 1. |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Unrealized Currency Translation Adjustments Pension Adjustments Unrealized Gain (Loss) on Securities Unrealized Gain (Losses) on Derivatives Accumulated Other Comprehensive Income (Loss) December 31, 2016 $ (292.2 ) $ (56.6 ) $ 0.4 $ (2.0 ) $ (350.4 ) Current year deferrals to AOCI 66.8 — (0.3 ) (2.4 ) 64.1 Reclassifications from AOCI to Net income (loss) — 6.2 — 1.6 7.8 Net Change 66.8 6.2 (0.3 ) (0.8 ) 71.9 June 30, 2017 $ (225.4 ) $ (50.4 ) $ 0.1 $ (2.8 ) $ (278.5 ) Unrealized Currency Translation Adjustments Pension Adjustments Unrealized Unrealized Gain (Loss) on Derivatives Accumulated December 31, 2015 $ (232.8 ) $ (33.4 ) $ 0.1 $ (3.2 ) $ (269.3 ) Current year deferrals to AOCI 2.3 — (0.3 ) (2.1 ) (0.1 ) Reclassifications from AOCI to Net income — (0.5 ) — 1.0 0.5 Net Change 2.3 (0.5 ) (0.3 ) (1.1 ) 0.4 June 30, 2016 $ (230.5 ) $ (33.9 ) $ (0.2 ) $ (4.3 ) $ (268.9 ) |
Basis of Presentation of the 45
Basis of Presentation of the Condensed Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Subsidiary, Sale of Stock [Line Items] | |||||||||
Venezuela deconsolidation charge | $ 70.9 | $ 0 | $ 70.9 | $ 0 | |||||
Revenue, net | (1,088.5) | (1,063.6) | (2,096.3) | (2,020.8) | |||||
Impact on Net Income | $ (20.8) | $ 50.7 | $ 43.3 | $ 82.6 | |||||
Earnings Per Share, Diluted | $ 0.09 | $ (0.21) | $ (0.18) | $ (0.34) | |||||
Other accrued liabilities | $ 456.2 | $ 456.2 | $ 440 | ||||||
Goodwill | 1,219.3 | 1,219.3 | 964.1 | ||||||
Other assets | 535.6 | 535.6 | 536.1 | ||||||
Accumulated deficit | $ (14.8) | $ (14.8) | (58.1) | ||||||
Subsidiaries [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Ownership interest in subsidiary | 100.00% | 100.00% | |||||||
Venezuela deconsolidation charge | $ 70.9 | $ 70.9 | |||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-18 [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Net cash provided by (used in) investing activities | $ (0.4) | ||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Net cash provided by (used in) operating activities | 6.7 | ||||||||
Net Cash Provided by (Used in) Financing Activities | (6.7) | ||||||||
Retained Earnings [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Effect of adoption, quantification | 43.9 | ||||||||
Other Nonoperating Income (Expense) [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Effect of adoption, quantification | $ (3.2) | (4.4) | |||||||
Restatement Adjustment [Member] | Revenue Recognition Correction [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Revenue, net | 1.5 | (0.1) | $ 4.2 | 4.7 | $ 3.3 | $ 5.1 | |||
Impact on Net Income | $ (1) | $ 0 | $ (2.8) | $ (3) | $ (2.1) | $ (3.1) | |||
Earnings Per Share, Diluted | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Other accrued liabilities | $ 22.4 | ||||||||
Goodwill | 3.1 | ||||||||
Other assets | 8.3 | ||||||||
Accumulated deficit | $ 11 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Millions | Jun. 01, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($)business | Jun. 30, 2016USD ($) | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Acquisition costs | $ 5.3 | |||||
Industrial Wood Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Pro Forma Net Income (Loss) | 53.8 | $ 82.1 | ||||
Payments to acquire businesses, gross | $ 420 | |||||
Working capital adjustments | 10.7 | |||||
Consideration transferred | 430.7 | |||||
Tax deductible goodwill | 132.6 | |||||
Acquisition costs | $ 5.3 | |||||
Identifiable intangibles | $ 254.2 | |||||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 20 years | |||||
Revenue of acquiree since acquisition date | $ 22.1 | |||||
Earnings or loss of acquiree since acquisition date | $ 1.5 | |||||
Industrial Wood Acquisition [Member] | Acquisition-related Costs [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Pro Forma Net Income (Loss) | 5.3 | |||||
Industrial Wood Acquisition [Member] | Acquisition-related Costs, Net of Tax [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Pro Forma Net Income (Loss) | 3.3 | |||||
Industrial Wood Acquisition [Member] | Fair Value Adjustment to Inventory [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Pro Forma Net Income (Loss) | 2.3 | |||||
Industrial Wood Acquisition [Member] | Fair Value Adjustment to Inventory, net of tax [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Pro Forma Net Income (Loss) | 1.4 | |||||
2017 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | 539.2 | |||||
Finite-lived intangible assets acquired | $ 297.9 | |||||
Percent acquired | 100.00% | 100.00% | 100.00% | |||
Number of businesses acquired | business | 5 | |||||
Contingent consideration | $ 5.7 | $ 5.7 | $ 5.7 | |||
2017 Acquisitions [Member] | North America [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses acquired | business | 2 | |||||
2017 Acquisitions [Member] | Europe [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses acquired | business | 2 | |||||
Technology-Based Intangible Assets [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 10 years 5 months | 10 years 2 months | ||||
Technology-Based Intangible Assets [Member] | Industrial Wood Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 30.9 | |||||
Technology-Based Intangible Assets [Member] | 2017 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 39.7 | |||||
Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 14 years 5 months | 14 years 8 months 31 days | ||||
Trademarks [Member] | Industrial Wood Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | 11.7 | |||||
Trademarks [Member] | 2017 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 18.8 | |||||
Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 19 years 1 month | 18 years 8 months | ||||
Customer Relationships [Member] | Industrial Wood Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | 205.3 | |||||
Customer Relationships [Member] | 2017 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 231.1 | |||||
Customer Contracts [Member] | Industrial Wood Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 6.3 | |||||
Customer Contracts [Member] | 2017 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 8.3 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - Industrial Wood Acquisition [Member] $ in Millions | Jun. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Accounts and notes receivable—trade | $ 23.3 |
Inventories | 24.9 |
Prepaid expenses and other | 0.2 |
Property, plant and equipment | 23 |
Identifiable intangibles | 254.2 |
Accounts payable | (22.4) |
Other accrued liabilities | (5.1) |
Net assets acquired before goodwill on acquisition | 298.1 |
Tax deductible goodwill | 132.6 |
Net assets acquired | $ 430.7 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - Industrial Wood Acquisition [Member] - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | $ 2,197.6 | $ 2,127.5 |
Net income | 53.8 | 82.1 |
Net income attributable to controlling interests | $ 50.1 | $ 79.6 |
Net income per share (Basic) (in dollars per share) | $ 0.21 | $ 0.34 |
Net income per share (Diluted) (in dollars per share) | $ 0.20 | $ 0.33 |
Goodwill and Identifiable Int49
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 964.1 |
Goodwill, Acquired During Period | 182.1 |
Foreign currency translation | 73.1 |
Goodwill, ending balance | 1,219.3 |
Performance Coatings [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 889.4 |
Goodwill, Acquired During Period | 182.1 |
Foreign currency translation | 68.3 |
Goodwill, ending balance | 1,139.8 |
Transportation Coatings [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 74.7 |
Goodwill, Acquired During Period | 0 |
Foreign currency translation | 4.8 |
Goodwill, ending balance | $ 79.5 |
Goodwill and Identifiable Int50
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 1,785.8 | $ 1,420.3 | |
Accumulated Amortization | (349.3) | (290) | |
Net Book Value, definite-lived | 1,436.5 | 1,130.3 | |
Trademarks [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Net Book Value, indefinite-lived | 291.1 | 273.2 | |
Technology-Based Intangible Assets [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | 479.3 | 417.1 | |
Accumulated Amortization | (184.5) | (153.6) | |
Net Book Value, definite-lived | $ 294.8 | 263.5 | |
Weighted average amortization periods (years) | 10 years 5 months | 10 years 2 months | |
Trademarks [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 76.3 | 55 | |
Accumulated Amortization | (14.2) | (11.4) | |
Net Book Value, definite-lived | $ 62.1 | 43.6 | |
Weighted average amortization periods (years) | 14 years 5 months | 14 years 8 months 31 days | |
Customer Relationships [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 929.9 | 672.6 | |
Accumulated Amortization | (149.6) | (123.3) | |
Net Book Value, definite-lived | $ 780.3 | 549.3 | |
Weighted average amortization periods (years) | 19 years 1 month | 18 years 8 months | |
Other Intangible Assets [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 9.2 | 2.4 | |
Accumulated Amortization | (1) | (1.7) | |
Net Book Value, definite-lived | $ 8.2 | $ 0.7 | |
Weighted average amortization periods (years) | 4 years 8 months | 4 years 7 months |
Goodwill and Identifiable Int51
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions | Jun. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2017 | $ 56.1 |
2,018 | 104 |
2,019 | 104 |
2,020 | 103.6 |
2,021 | 102.5 |
2,022 | $ 84 |
Restructuring - Additional Inf
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0.4 | $ 5.1 | $ 1.4 | $ 5.6 |
Accelerated depreciation | 2.1 | 4.3 | ||
Impairment charge on manufacturing facility | $ 3.2 | $ 3.2 | ||
Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payment term (in months) | 12 years | |||
Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payment term (in months) | 15 years |
Restructuring - Restructuring
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 66.1 | |||
Expense recorded | $ 0.4 | $ 5.1 | 1.4 | $ 5.6 |
Payments made | (14.6) | |||
Foreign currency impacts | 4.8 | |||
Venezuela deconsolidation impact | (1.5) | |||
Ending balance | $ 56.2 | $ 56.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Build To Suit Lease [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | |
Build-to-suit construction in progress | $ 27.6 |
Total estimated cost of build-to-suit construction in progress | $ 37.8 |
Long-term Employee Benefits -
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net periodic benefit cost: | ||||
Service cost | $ 2.1 | $ 2.6 | $ 4.2 | $ 5.1 |
Interest cost | 3.3 | 3.9 | 6.7 | 7.8 |
Expected return on plan assets | (3.5) | (3.4) | (7) | (6.6) |
Amortization of actuarial loss, net | 0.3 | 0.2 | 0.8 | 0.1 |
Net periodic benefit (gain) cost | $ 2.2 | $ 3.3 | $ 4.7 | $ 6.4 |
Stock-based Compensation - Add
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 10.9 | $ 11.4 | $ 21.3 | $ 21.6 |
Tax benefit from compensation expense | 3.4 | $ 1.6 | 6.3 | $ 5.5 |
Proceeds from stock options exercised | 12.9 | |||
Tax benefit realized from exercise of stock options | 9.3 | |||
Unrecognized compensation cost | 7.6 | $ 7.6 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition of compensation not yet recognized | 2 years 2 months 26 days | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition of compensation not yet recognized | 2 years 4 months 9 days | |||
Compensation not yet recognized, share-based awards other than options | 14.7 | $ 14.7 | ||
Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition of compensation not yet recognized | 2 years 1 month 24 days | |||
Tax benefit realized on the vesting of restricted stock | $ 11.2 | |||
Compensation not yet recognized, share-based awards other than options | $ 29.9 | $ 29.9 |
Stock-based Compensation - Sch
Stock-based Compensation - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Awards (in millions) | |
Beginning Balance | shares | 9.6 |
Grants in period | shares | 0.9 |
Exercises in period | shares | (1.2) |
Forfeitures in period | shares | (0.1) |
Ending Balance | shares | 9.2 |
Weighted Average Exercise Price (usd per share) | |
Beginning Balance | $ / shares | $ 14.40 |
Grants in period (usd per share) | $ / shares | 29.52 |
Exercised (usd per share) | $ / shares | 10.54 |
Forfeited (usd per share) | $ / shares | 28.10 |
Ending Balance | $ / shares | $ 16.23 |
Vested and Expected to Vest | |
Vested and expected to vest, in shares | shares | 9.2 |
Vested and expected to vest, weighted average exercise price (usd) | $ / shares | $ 16.23 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 145.1 |
Vested and expected to vest, weighted average contractual life (in years) | 6 years 10 months 27 days |
Exercisable | |
Exercisable, in shares | shares | 7.2 |
Exercisable, usd per share | $ / shares | $ 13.15 |
Exercisable, aggregate intrinsic value | $ | $ 136.5 |
Exercisable, weighted average contractual life (in years) | 6 years 4 months 13 days |
Stock-based Compensation - S58
Stock-based Compensation - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock and Restricted Stock Units [Member] shares in Millions | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Awards (in millions) | |
Beginning Balance | shares | 2.3 |
Granted (in shares) | shares | 0.7 |
Vested (in shares) | shares | (0.9) |
Forfeited (in shares) | shares | (0.1) |
Ending Balance | shares | 2 |
Weighted Average Exercise Price (usd per share) | |
Beginning Balance (usd per share) | $ / shares | $ 29.18 |
Granted (usd per share) | $ / shares | 30.17 |
Vested (usd per share) | $ / shares | 30.05 |
Forfeited (usd per share) | $ / shares | 26.26 |
Ending Balance (usd per share) | $ / shares | $ 29.14 |
Stock-based Compensation - S59
Stock-based Compensation - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares [Member] shares in Millions | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Awards (in millions) | |
Beginning Balance | shares | 0.3 |
Granted (in shares) | shares | 0.3 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending Balance | shares | 0.6 |
Weighted Average Exercise Price (usd per share) | |
Beginning Balance (usd per share) | $ / shares | $ 27.74 |
Granted (usd per share) | $ / shares | 38.11 |
Vested (usd per share) | $ / shares | 0 |
Forfeited (usd per share) | $ / shares | 0 |
Ending Balance (usd per share) | $ / shares | $ 31.11 |
Other Expense, Net - Schedule
Other Expense, Net - Schedule of Other Non-operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange losses, net | $ 6 | $ 18 | $ 4.8 | $ 25.5 |
Impairments of property | 3.2 | 10.5 | 3.2 | 10.5 |
Debt extinguishment and refinancing related costs | 12.4 | 2.3 | 12.4 | 2.3 |
Other miscellaneous (income) expense, net | (0.4) | 2 | (0.8) | 2.5 |
Total | $ 21.2 | $ 32.8 | $ 19.6 | $ 40.8 |
Other Expense, Net - Additiona
Other Expense, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Subsidiaries [Member] | ||||
Other Income Expense [Line Items] | ||||
Exchange loss | $ 0.3 | $ 15.6 | $ 1.8 | $ 22.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Line Items] | ||||
Effective income tax rate, percent | 29.20% | 26.40% | ||
Venezuela deconsolidation charge | $ 70.9 | $ 0 | $ 70.9 | $ 0 |
Tax benefit realized from exercises and vesting of share-based awards | 8.9 | $ 4.4 | ||
Subsidiaries [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Venezuela deconsolidation charge | $ 70.9 | $ 70.9 |
Earnings (Loss) Per Common Sh63
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) to common shareholders | $ (20.8) | $ 50.7 | $ 43.3 | $ 82.6 |
Basic weighted average shares outstanding (in shares) | 240.9 | 237.7 | 240.4 | 237.4 |
Diluted weighted average shares outstanding (in shares) | 240.9 | 244.3 | 246.5 | 243.8 |
Net income (loss) per common share: | ||||
Basic net income (loss) per share (dollars per share) | $ (0.09) | $ 0.21 | $ 0.18 | $ 0.35 |
Diluted net income (loss) per share (dollars per share) | $ (0.09) | $ 0.21 | $ 0.18 | $ 0.34 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 11.6 | 1.1 | 1.7 | 1.5 |
Adjustments for New Accounting Pronouncement [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Diluted weighted average shares outstanding (in shares) | 1.9 | 1.8 |
Accounts and Notes Receivable64
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Accounts receivable - trade, net | $ 840.6 | $ 640.4 |
Notes receivable | 30.7 | 68.7 |
Other | 90.1 | 92.8 |
Total | $ 961.4 | $ 801.9 |
Accounts and Notes Receivable65
Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Receivables [Abstract] | |||||
Allowance for doubtful accounts | $ 15.5 | $ 15.5 | $ 13.7 | ||
Bad Debt Expense Net Of Recoveries | $ 1.7 | $ 1 | $ 2.4 | $ 1.1 |
Inventories - Schedule of Inve
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 332.3 | $ 315.2 |
Semi-finished products | 93.1 | 87.5 |
Raw materials and supplies | 154.7 | 127 |
Inventories | $ 580.1 | $ 529.7 |
Inventories - Additional Infor
Inventories - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Stores and supplies inventories | $ 20.9 | $ 20.2 |
Property, Plant and Equipment68
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 44.7 | $ 43.9 | $ 88 | $ 85.6 |
Property, Plant and Equipment69
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 2,098.3 | $ 1,933 |
Accumulated depreciation | (727.6) | (617.3) |
Property, plant, and equipment, net | $ 1,370.7 | $ 1,315.7 |
Borrowings - Schedule of Debt
Borrowings - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 01, 2017 | Dec. 31, 2016 | Aug. 16, 2016 |
Debt Instrument [Line Items] | ||||
Short-term and other borrowings | $ 59.1 | $ 39.8 | ||
Unamortized original issue discount | (9.9) | (10) | ||
Unamortized deferred financing costs | (41.8) | (48) | ||
Debt and Capital Lease Obligations | 3,858.9 | 3,263.9 | ||
Short term borrowings | 10.9 | 8.3 | ||
Current portion of long-term borrowings | 24.6 | 19.6 | ||
Long-term debt | 3,823.4 | 3,236 | ||
2024 Dollar Term Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan | 2,000 | 0 | ||
Unamortized original issue discount | $ (2.5) | |||
2023 Dollar Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan | 0 | 1,545 | ||
2023 Euro Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan | 454.7 | 417.6 | ||
2024 Dollar Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 500 | 500 | ||
Unamortized original issue discount | $ (2) | |||
2024 Euro Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 382.7 | 349.7 | ||
2025 Euro Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 514.1 | $ 469.8 |
Borrowings - Senior Secured Cr
Borrowings - Senior Secured Credit Facilities (Details) € in Millions | Dec. 15, 2016USD ($) | Aug. 16, 2016USD ($) | Aug. 01, 2016 | Feb. 03, 2014EUR (€) | Jun. 30, 2017USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015 | Jun. 01, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 15, 2016EUR (€) | Dec. 15, 2016USD ($) | Jul. 31, 2016 | Feb. 03, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Unamortized original issue discount | $ 9,900,000 | $ 10,000,000 | |||||||||||
Debt instrument covenant maximum consolidated leverage ratio | 4.50 | ||||||||||||
Proceeds from maturities, prepayments and calls of other investments (more than) | $ 75,000,000 | ||||||||||||
Percentage on excess cash flow for mandatory prepayments of debt | 50.00% | ||||||||||||
Decrease in percentage on excess cash flow for mandatory prepayments of debt | 25.00% | ||||||||||||
Percentage on first lien leverage ratio for mandatory prepayments of debt | 0.00% | ||||||||||||
First lien leverage ratio upper limit | 4.25 | 3 | |||||||||||
First lien leverage ratio lower limit | 3.50 | 5.50 | 2.50 | ||||||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | ||||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Expiration period (in years) | 5 years | ||||||||||||
Accelerated period prior to expiration period (in days) | 91 days | ||||||||||||
Percent of credit facility outstanding for accelerated maturity | 30.00% | 25.00% | |||||||||||
Percent not cash collateralized | 103.00% | ||||||||||||
Line of credit facility, maximum amount outstanding during period | 0 | $ 0 | |||||||||||
Letters of credit outstanding, amount | 21,800,000 | 21,300,000 | |||||||||||
Line of credit facility, remaining borrowing capacity | $ 378,200,000 | $ 378,700,000 | |||||||||||
Dollar Term Loan Due 2020 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, long-term and short-term, combined amount | $ 1,775,300,000 | $ 2,282,800,000 | |||||||||||
Debt instrument, basis spread on variable rate | 2.75% | ||||||||||||
Debt instrument covenant maximum consolidated leverage ratio | 4.50 | ||||||||||||
Debt instrument periodic payment principal percentage | 1.00% | ||||||||||||
Dollar Term Loan Due 2020 [Member] | Eurocurrency Rate Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 3.00% | ||||||||||||
Dollar Term Loan Due 2020 [Member] | Interest Rate Floor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 0.75% | 1.00% | |||||||||||
Dollar Term Loan Due 2020 [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||||
Euro Term Loan Due 2020 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, long-term and short-term, combined amount | € | € 397 | € 199 | |||||||||||
Debt instrument, basis spread on variable rate | 3.00% | ||||||||||||
Euro Term Loan Due 2020 [Member] | Minimum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | 1.00% | |||||||||||
Euro Term Loan Due 2020 [Member] | Eurocurrency Rate Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 3.25% | ||||||||||||
2023 Dollar Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, long-term and short-term, combined amount | $ 1,541,100,000 | $ 1,545,000,000 | |||||||||||
Debt instrument periodic payment principal percentage | 1.00% | ||||||||||||
2023 Dollar Term Loan [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||||||
2023 Euro Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, long-term and short-term, combined amount | € | € 400 | ||||||||||||
2023 Euro Term Loan [Member] | Eurocurrency Rate Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||
2023 Euro Term Loan [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 0.75% | ||||||||||||
2024 Dollar Term Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, long-term and short-term, combined amount | $ 2,000,000,000 | ||||||||||||
Discount, percent of par | 99.875% | ||||||||||||
Unamortized original issue discount | $ 2,500,000 | ||||||||||||
2024 Dollar Term Loans [Member] | Eurocurrency Rate Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||||
2024 Dollar Term Loans [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||
2024 Dollar Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Discount, percent of par | 99.951% | ||||||||||||
Unamortized original issue discount | $ 2,000,000 | ||||||||||||
Debt instrument, interest rate, stated percentage | 4.875% | ||||||||||||
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | 3.50% | |||||||||||
Senior Secured Credit Facilities [Member] | Eurodollar [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 0.00% | ||||||||||||
Step-down percent for 3.00:1.00 leverage ratio | 2.50% | ||||||||||||
Step-down percent for 2.50:1.00 leverage ratio | 2.25% | ||||||||||||
Senior Secured Credit Facility, Base Rate Loans [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | 2.50% | |||||||||||
Step-down percent for 3.00:1.00 leverage ratio | 1.50% | ||||||||||||
Step-down percent for 2.50:1.00 leverage ratio | 1.25% | ||||||||||||
Senior Secured Credit Facility, Base Rate Loans [Member] | Eurodollar [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||
Senior Secured Credit Facility, Base Rate Loans [Member] | Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||||||
New Dollar Term Loan [Member] | Eurocurrency Rate Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument Basis Spread Reduced On Variable Rate | 0.25% | 0.25% | |||||||||||
New Dollar Term Loan [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument Basis Spread Reduced On Variable Rate | 0.25% | 0.25% | |||||||||||
New Euro Term Loan [Member] | Eurocurrency Rate Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument Basis Spread Reduced On Variable Rate | 0.25% | 0.25% | |||||||||||
Debt instrument, basis spread on variable rate | 2.25% |
Borrowings - Senior Notes (Det
Borrowings - Senior Notes (Details) € in Millions, $ in Millions | Aug. 16, 2016EUR (€) | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 27, 2016EUR (€) | Aug. 16, 2016USD ($) | Feb. 01, 2013EUR (€) | Feb. 01, 2013USD ($) |
Debt Instrument [Line Items] | |||||||||
Unamortized original issue discount | $ 9.9 | $ 10 | |||||||
Build-to-suit Lease and Sale-leaseback Financing [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Future minimum payments due | $ 34.3 | ||||||||
2024 Dollar Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage if change in control occurs | 101.00% | ||||||||
Debt Instrument, Redemption, Period One [Member] | 2021 Euro Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage | 104.313% | ||||||||
Debt Instrument, Redemption, Period One [Member] | 2021 Dollar Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage | 105.531% | ||||||||
Debt Instrument, Redemption, Period One [Member] | 2024 Dollar Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage | 103.656% | ||||||||
2021 Dollar Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 750 | ||||||||
Debt instrument, interest rate, stated percentage | 7.375% | 7.375% | |||||||
2021 Euro Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | € | € 250 | ||||||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | |||||||
2024 Dollar Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 500 | ||||||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||||||
Debt instrument, redemption price, percentage | 104.875% | ||||||||
Discount, percent of par | 99.951% | 99.951% | |||||||
Unamortized original issue discount | $ 2 | ||||||||
Percent of principal required to be outstanding | 50.00% | ||||||||
2024 Dollar Senior Notes [Member] | Any Time Prior to August 15, 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price, percentage of principal amount redeemed | 40.00% | ||||||||
2024 Euro Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | € | € 335 | ||||||||
Debt instrument, interest rate, stated percentage | 4.25% | 4.25% | |||||||
Debt instrument, redemption price, percentage | 104.25% | ||||||||
Percent of principal required to be outstanding | 50.00% | ||||||||
Percentage if change in control occurs | 101.00% | ||||||||
2024 Euro Senior Notes [Member] | Any Time Prior to August 15, 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price, percentage of principal amount redeemed | 40.00% | ||||||||
2025 Euro Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | € | € 450 | ||||||||
Debt instrument, interest rate, stated percentage | 3.75% | ||||||||
Debt instrument, redemption price, percentage | 103.75% | ||||||||
Percent of principal required to be outstanding | 50.00% | ||||||||
Percentage if change in control occurs | 101.00% | ||||||||
2025 Euro Senior Notes [Member] | Any Time Prior to January 15, 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price, percentage of principal amount redeemed | 40.00% |
Borrowings - Debt Instrument R
Borrowings - Debt Instrument Redemption (Details) | 6 Months Ended |
Jun. 30, 2017 | |
2024 Dollar Senior Notes [Member] | 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 103.656% |
2024 Dollar Senior Notes [Member] | 2020 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 102.438% |
2024 Dollar Senior Notes [Member] | 2021 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 101.219% |
2024 Dollar Senior Notes [Member] | 2022 and thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 100.00% |
2024 Euro Senior Notes [Member] | 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 103.188% |
2024 Euro Senior Notes [Member] | 2020 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 102.125% |
2024 Euro Senior Notes [Member] | 2021 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 101.063% |
2024 Euro Senior Notes [Member] | 2022 and thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 100.00% |
2025 Euro Senior Notes [Member] | 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 102.813% |
2025 Euro Senior Notes [Member] | 2020 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 101.875% |
2025 Euro Senior Notes [Member] | 2021 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 100.938% |
2025 Euro Senior Notes [Member] | 2022 and thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 100.00% |
Borrowings - Schedule of Matur
Borrowings - Schedule of Maturities of Long-term Debt (Details) $ in Millions | Jun. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2017 | $ 23.4 |
2,018 | 26.2 |
2,019 | 25.4 |
2,020 | 25.3 |
2,021 | 25.2 |
Thereafter | 3,750.8 |
Long-term debt | $ 3,876.3 |
Fair Value Accounting (Details)
Fair Value Accounting (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | $ 4.4 | $ 4.4 | $ 4.4 |
Contingent consideration fair value | 10.1 | 10.1 | 10 |
Adjustments to contingent consideration | 2.2 | 3.9 | |
2024 Dollar Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 516.3 | 516.3 | 500 |
2024 Euro Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 406.6 | 406.6 | 363.8 |
2025 Euro Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 539.8 | 539.8 | 472.2 |
2024 Dollar Term Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 2,007.5 | 2,007.5 | |
2023 Euro Term Loan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | $ 460.9 | $ 460.9 | 421.8 |
2023 Dollar Term Loan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | $ 1,560.5 |
Derivative Financial Instrume76
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 0.5 | $ 0.1 |
Derivative liability | 4.3 | 0.8 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0.5 | 0.1 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0.1 | 0.8 |
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 2.5 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1.7 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0.1 | 0.1 |
Derivative liability | 2 | 0.5 |
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0.1 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 0.1 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 2 | $ 0.5 |
Derivative Financial Instrume77
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) - Interest Rate Contract [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion) | $ 2.2 | $ (0.5) | $ 3.7 | $ 1.7 |
Interest Expense [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion) | 0.2 | 1.6 | 0.7 | 3.2 |
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion) | $ 0.4 | $ 0.9 | $ 2 | $ 3.3 |
Derivative Financial Instrume78
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Nonoperating Income (Expense) [Member] | Foreign Exchange Contract [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
(Gain) loss on instruments not designated as hedges, net | $ 4.8 | $ 1.6 | $ 7.2 | $ 4 |
Interest Expense [Member] | Interest Rate Cap [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
(Gain) loss on instruments not designated as hedges, net | $ 0.1 | $ 0 | $ 0.4 | $ 0 |
Derivative Financial Instrume79
Derivative Financial Instruments - Additional Information (Details) € in Millions | 6 Months Ended | |||
Jun. 30, 2017EUR (€) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2013USD ($)swap | |
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate swaps | swap | 5 | |||
2023 Dollar Term Loan [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | $ 600,000,000 | |||
Derivative, maturity date | Dec. 31, 2019 | |||
Number of interest rate caps | 3 | |||
Derivative, cap interest rate | 1.50% | |||
Derivative, inception date | Sep. 30, 2017 | |||
2024 Dollar Term Loans [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative instrument, deferred premium | $ 8,600,000 | |||
2023 Euro Term Loan [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, maturity date | Dec. 31, 2019 | |||
Derivative, cap interest rate | 1.25% | 1.25% | ||
Derivative, inception date | Sep. 30, 2017 | |||
Derivative instrument, premium | $ 600,000 | |||
Interest Rate Swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | $ 1,173,000,000 | |||
Derivative, maturity date | Sep. 29, 2017 | |||
Interest Rate Cap [Member] | 2023 Euro Term Loan [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | $ 300,000,000 | |||
Derivative, cap interest rate | 1.50% | |||
Derivative instrument, premium | $ 3,100,000 | |||
2023 Euro Term Loan [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | € | € 388 |
Segments - Reconciliation of R
Segments - Reconciliation of Revenue from Segments to Consolidated (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)marketSegment | Jun. 30, 2016USD ($) | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Number of end-markets served | market | 4 | |||
Net sales | $ 1,088.5 | $ 1,063.6 | $ 2,096.3 | $ 2,020.8 |
Performance Coatings [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 662.9 | 630.6 | 1,249.3 | 1,175.2 |
Performance Coatings [Member] | Refinish [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 421.2 | 447.3 | 809.8 | 827.6 |
Performance Coatings [Member] | Industrial [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 241.7 | 183.3 | 439.5 | 347.6 |
Transportation Coatings [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 425.6 | 433 | 847 | 845.6 |
Transportation Coatings [Member] | Light Vehicle [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 334.3 | 344.4 | 674.3 | 673.8 |
Transportation Coatings [Member] | Commercial Vehicle [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | $ 91.3 | $ 88.6 | $ 172.7 | $ 171.8 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,088.5 | $ 1,063.6 | $ 2,096.3 | $ 2,020.8 |
Equity in earnings in unconsolidated affiliates | 0.2 | 0.1 | 0.4 | 0.3 |
Adjusted EBITDA | 227.2 | 251.1 | 430.3 | 447.5 |
Investment in unconsolidated affiliates | 14.8 | 15.1 | 14.8 | 15.1 |
Performance Coatings [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 662.9 | 630.6 | 1,249.3 | 1,175.2 |
Equity in earnings in unconsolidated affiliates | 0.1 | 0.1 | 0.2 | 0.2 |
Adjusted EBITDA | 146.8 | 155.8 | 263.7 | 267.5 |
Investment in unconsolidated affiliates | 3 | 3.9 | 3 | 3.9 |
Transportation Coatings [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 425.6 | 433 | 847 | 845.6 |
Equity in earnings in unconsolidated affiliates | 0.1 | 0 | 0.2 | 0.1 |
Adjusted EBITDA | 80.4 | 95.3 | 166.6 | 180 |
Investment in unconsolidated affiliates | $ 11.8 | $ 11.2 | $ 11.8 | $ 11.2 |
Segments - Reconciliation of O
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) before income taxes | $ (9.4) | $ 68.9 | $ 66.4 | $ 115.7 |
Interest expense, net | 35.6 | 47.8 | 71.4 | 97.9 |
Depreciation and amortization | 84.9 | 78.6 | 167.3 | 154.6 |
EBITDA | 111.1 | 195.3 | 305.1 | 368.2 |
Debt extinguishment and refinancing related costs | 12.4 | 2.3 | 12.4 | 2.3 |
Foreign exchange remeasurement losses (gains) | 6 | 18 | 4.8 | 25.5 |
Long-term employee benefit plan adjustments | 0.1 | 0.7 | 0.5 | 1.3 |
Termination benefits and other employee related costs | 0 | 7 | 0.8 | 8.9 |
Consulting and advisory fees | 0 | 2.6 | (0.1) | 5.6 |
Transition Costs | 3.9 | 0 | 3.9 | 0 |
Offering and transactional | 6.6 | 1.4 | 5.6 | 1.4 |
Share-based compensation expense | 10.9 | 11.4 | 21.3 | 21.6 |
Other adjustments | 2.6 | 1.9 | 2.8 | 3.7 |
Dividends paid to noncontrolling interests | (0.5) | 0 | (0.9) | (1.5) |
Deconsolidation Impacts and Impairment | 74.1 | 10.5 | 74.1 | 10.5 |
Adjusted EBITDA | 227.2 | 251.1 | 430.3 | 447.5 |
Gain (Loss) on Extinguishment of Debt | 12.4 | 2.3 | 12.4 | 2.3 |
Venezuela deconsolidation charge | 70.9 | 0 | 70.9 | 0 |
Impairment charge on manufacturing facility | 3.2 | 3.2 | ||
Impairments of property | 3.2 | 10.5 | 3.2 | 10.5 |
Subsidiaries [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Exchange loss | (0.3) | (15.6) | (1.8) | (22.7) |
Venezuela deconsolidation charge | 70.9 | $ 70.9 | ||
Impairments of property | 10.5 | 10.5 | ||
2023 Dollar Term Loan [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gain (Loss) on Extinguishment of Debt | $ 2.3 | 2.3 | ||
2023 Dollar Term Loan [Domain] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Repayments of debt | $ 100 | |||
2024 Dollar Term Loans [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gain (Loss) on Extinguishment of Debt | $ 12.4 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 01, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total stockholders’ equity, beginning balance | $ 1,246.6 | $ 1,133.2 | |||
Cumulative effect of an accounting change | $ 43.9 | ||||
Total stockholders’ equity, beginning balance | $ 1,391.5 | $ 1,288.4 | 1,246.6 | 1,133.2 | 1,177.1 |
Net income | (18.9) | 52.3 | 47 | 85.1 | |
Other comprehensive income, net of tax | 31.4 | (13.6) | 72.9 | 0.2 | |
Recognition of stock-based compensation | 21.3 | 21.6 | |||
Exercise of stock options | 12.9 | 5.9 | |||
Treasury share repurchase | (8.3) | ||||
Dividends paid to noncontrolling interests | (0.9) | (1.5) | |||
Total stockholders’ equity, ending balance | 1,391.5 | 1,288.4 | 1,391.5 | 1,288.4 | |
Parent [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total stockholders’ equity, beginning balance | 1,125.1 | 1,065.7 | |||
Cumulative effect of an accounting change | 43.9 | ||||
Total stockholders’ equity, beginning balance | 1,266.2 | 1,220.1 | 1,125.1 | 1,065.7 | 1,109.6 |
Net income | 43.3 | 82.6 | |||
Other comprehensive income, net of tax | 71.9 | 0.4 | |||
Recognition of stock-based compensation | 21.3 | 21.6 | |||
Exercise of stock options | 12.9 | 5.9 | |||
Treasury share repurchase | (8.3) | ||||
Dividends paid to noncontrolling interests | 0 | 0 | |||
Total stockholders’ equity, ending balance | 1,266.2 | 1,220.1 | 1,266.2 | 1,220.1 | |
Noncontrolling Interest [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total stockholders’ equity, beginning balance | 121.5 | 67.5 | |||
Total stockholders’ equity, beginning balance | 125.3 | 68.3 | 121.5 | 67.5 | $ 67.5 |
Net income | 3.7 | 2.5 | |||
Other comprehensive income, net of tax | 1 | (0.2) | |||
Recognition of stock-based compensation | 0 | 0 | |||
Exercise of stock options | 0 | 0 | |||
Treasury share repurchase | 0 | ||||
Dividends paid to noncontrolling interests | (0.9) | (1.5) | |||
Total stockholders’ equity, ending balance | $ 125.3 | $ 68.3 | $ 125.3 | $ 68.3 |
Accumulated Other Comprehensi84
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | $ (350.4) | |||
Other comprehensive income (loss), net of tax | $ 31.4 | $ (13.6) | 72.9 | $ 0.2 |
Accumulated other comprehensive income (loss), ending balance | (278.5) | (278.5) | ||
Unrealized Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (292.2) | (232.8) | ||
Current year deferrals to AOCI | 66.8 | 2.3 | ||
Reclassifications from AOCI to Net income (loss) | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 66.8 | 2.3 | ||
Accumulated other comprehensive income (loss), ending balance | (225.4) | (230.5) | (225.4) | (230.5) |
Pension Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (56.6) | (33.4) | ||
Current year deferrals to AOCI | 0 | 0 | ||
Reclassifications from AOCI to Net income (loss) | 6.2 | (0.5) | ||
Other comprehensive income (loss), net of tax | 6.2 | (0.5) | ||
Accumulated other comprehensive income (loss), ending balance | (50.4) | (33.9) | (50.4) | (33.9) |
Unrealized Gain (Loss) on Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | 0.4 | 0.1 | ||
Current year deferrals to AOCI | (0.3) | (0.3) | ||
Reclassifications from AOCI to Net income (loss) | 0 | 0 | ||
Other comprehensive income (loss), net of tax | (0.3) | (0.3) | ||
Accumulated other comprehensive income (loss), ending balance | 0.1 | (0.2) | 0.1 | (0.2) |
Unrealized Gain (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (2) | (3.2) | ||
Current year deferrals to AOCI | (2.4) | (2.1) | ||
Reclassifications from AOCI to Net income (loss) | 1.6 | 1 | ||
Other comprehensive income (loss), net of tax | (0.8) | (1.1) | ||
Accumulated other comprehensive income (loss), ending balance | (2.8) | (4.3) | (2.8) | (4.3) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (350.4) | (269.3) | ||
Current year deferrals to AOCI | 64.1 | (0.1) | ||
Reclassifications from AOCI to Net income (loss) | 7.8 | 0.5 | ||
Other comprehensive income (loss), net of tax | 71.9 | 0.4 | ||
Accumulated other comprehensive income (loss), ending balance | $ (278.5) | $ (268.9) | $ (278.5) | $ (268.9) |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | ||
Loss due to deconsolidation of Venezeula, net of tax | $ 5.9 | |
Tax benefit on loss due to deconsolidation of Venezuela | 2.6 | |
Pension and other postretirement benefit plans, tax benefit (expense) | 0.5 | $ (0.6) |
Cumulative pension and other postretirement benefit plans, tax expense (benefits) | 16 | (12.8) |
Unrealized gain (loss) on derivatives, income tax expense (benefit) | (0.5) | (0.6) |
Cumulative unrealized gain (loss) on derivatives, income tax expense (benefit) | $ 1.6 | $ (2.5) |
Venezuela (Details)
Venezuela (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Intercompany Foreign Currency Balance [Line Items] | |||||
Venezuela deconsolidation charge | $ 70,900,000 | $ 0 | $ 70,900,000 | $ 0 | |
Assets | 6,657,100,000 | 6,657,100,000 | $ 5,866,200,000 | ||
Accounts and notes receivable, net | 961,400,000 | 961,400,000 | $ 801,900,000 | ||
Net sales | 1,088,500,000 | 1,063,600,000 | 2,096,300,000 | 2,020,800,000 | |
Subsidiaries [Member] | |||||
Intercompany Foreign Currency Balance [Line Items] | |||||
Venezuela deconsolidation charge | 70,900,000 | 70,900,000 | |||
VENEZUELA | Subsidiaries [Member] | |||||
Intercompany Foreign Currency Balance [Line Items] | |||||
Venezuela deconsolidation charge | 70,900,000 | ||||
Assets | 30,000,000 | 30,000,000 | |||
Accounts and notes receivable, net | 35,000,000 | 35,000,000 | |||
Benefit obligation, actuarial loss | 5,900,000 | ||||
Investments in subsidiaries | 0 | 0 | |||
Net sales | $ 700,000 | 19,300,000 | $ 2,500,000 | 29,200,000 | |
Asset impairment charges | $ 10,500,000 | $ 10,500,000 |