Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 17, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36733 | |
Entity Registrant Name | AXALTA COATING SYSTEMS LTD. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-1073028 | |
Entity Address, Address Line One | Two Commerce Square | |
Entity Address, Address Line Two | 2001 Market Street | |
Entity Address, Address Line Three | Suite 3600 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 855 | |
Local Phone Number | 547-1461 | |
Title of 12(b) Security | Common Shares, $1.00 par value | |
Trading Symbol | AXTA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 234,650,360 | |
Entity Central Index Key | 0001616862 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,107 | $ 1,146 | $ 3,383.8 | $ 3,530.2 |
Cost of goods sold | 707.4 | 759.1 | 2,207.1 | 2,328.9 |
Selling, general and administrative expenses | 231.5 | 293.4 | 655.2 | 745.8 |
(Gain) loss on divestiture | (0.5) | 0 | 3.4 | 0 |
Research and development expenses | 17.4 | 17 | 53.5 | 54.3 |
Amortization of acquired intangibles | 28.2 | 28.7 | 85.1 | 86.9 |
Income from operations | 123 | 47.8 | 379.5 | 314.3 |
Interest expense, net | 40.2 | 39.8 | 122.5 | 118.5 |
Other (income) expense, net | (1.9) | 5.5 | (3.8) | 11.4 |
Income before income taxes | 84.7 | 2.5 | 260.8 | 184.4 |
Provision for income taxes | 18.3 | 14.1 | 50.4 | 47.9 |
Net income (loss) | 66.4 | (11.6) | 210.4 | 136.5 |
Less: Net income attributable to noncontrolling interests | 0.9 | 1.5 | 3.1 | 4.8 |
Net income (loss) attributable to controlling interests | $ 65.5 | $ (13.1) | $ 207.3 | $ 131.7 |
Basic net income (loss) per share (dollars per share) | $ 0.28 | $ (0.05) | $ 0.89 | $ 0.55 |
Diluted net income (loss) per share (dollars per share) | $ 0.28 | $ (0.05) | $ 0.88 | $ 0.54 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 66.4 | $ (11.6) | $ 210.4 | $ 136.5 |
Other comprehensive loss, before tax: | ||||
Foreign currency translation adjustments | (52.8) | (17.6) | (40.4) | (86.9) |
Unrealized (loss) gain on derivatives | (4.6) | 3.6 | (39.5) | 16.2 |
Unrealized gain (loss) on pension plan obligations | 0.5 | 0.6 | 1 | (0.7) |
Other comprehensive loss, before tax | (56.9) | (13.4) | (78.9) | (71.4) |
Income tax (benefit) provision related to items of other comprehensive loss | (0.5) | 0.6 | (5.3) | 2.3 |
Other comprehensive loss, net of tax | (56.4) | (14) | (73.6) | (73.7) |
Comprehensive income (loss) | 10 | (25.6) | 136.8 | 62.8 |
Less: Comprehensive income attributable to noncontrolling interests | 0.3 | 0.3 | 5.2 | 1.7 |
Comprehensive income (loss) attributable to controlling interests | $ 9.7 | $ (25.9) | $ 131.6 | $ 61.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 767.2 | $ 693.6 |
Restricted cash | 2.9 | 2.8 |
Accounts and notes receivable, net | 935.7 | 860.8 |
Inventories | 597.3 | 613 |
Prepaid expenses and other current assets | 130 | 139.4 |
Total current assets | 2,433.1 | 2,309.6 |
Property, plant and equipment, net | 1,216.7 | 1,298.2 |
Goodwill | 1,183.7 | 1,230.8 |
Identifiable intangibles, net | 1,236 | 1,348 |
Other assets | 620.5 | 489.1 |
Total assets | 6,690 | 6,675.7 |
Current liabilities: | ||
Accounts payable | 495.3 | 522.8 |
Current portion of borrowings | 42.4 | 42.2 |
Other accrued liabilities | 497.2 | 475.6 |
Total current liabilities | 1,034.9 | 1,040.6 |
Long-term borrowings | 3,772.3 | 3,821.8 |
Accrued pensions | 248.6 | 261.9 |
Deferred income taxes | 115.8 | 140.8 |
Other liabilities | 178.7 | 100.1 |
Total liabilities | 5,350.3 | 5,365.2 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common shares, $1.00 par, 1,000.0 shares authorized, 249.8 and 246.7 shares issued at September 30, 2019 and December 31, 2018, respectively | 249.6 | 245.3 |
Capital in excess of par | 1,463.9 | 1,409.5 |
Retained earnings | 401.5 | 198.6 |
Treasury shares (at cost) of 15.2 and 11.1 shares at September 30, 2019 and December 31, 2018, respectively | (417.5) | (312.2) |
Accumulated other comprehensive loss | (411.8) | (336.1) |
Total Axalta shareholders’ equity | 1,285.7 | 1,205.1 |
Noncontrolling interests | 54 | 105.4 |
Total shareholders’ equity | 1,339.7 | 1,310.5 |
Total liabilities and shareholders’ equity | $ 6,690 | $ 6,675.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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) | 249,800,000 | 246,700,000 |
Treasury shares, at cost | 15,200,000 | 11,100,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital In Excess Of Par | Retained Earnings (Accumulated deficit) | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests |
Beginning balance (in shares) at Dec. 31, 2017 | 241.9 | ||||||
Beginning balance at Dec. 31, 2017 | $ 1,407.8 | $ 242.4 | $ 1,354.5 | $ (21.4) | $ (58.4) | $ (241) | $ 131.7 |
Comprehensive income (loss): | |||||||
Net income | 71 | 69.9 | 1.1 | ||||
Net realized and unrealized loss on derivatives, net of tax benefit | 6.3 | 6.3 | |||||
Long-term employee benefit plans, net of tax | 0.6 | 0.6 | |||||
Foreign currency translation, net of tax | 43.1 | 42.2 | 0.9 | ||||
Total comprehensive income | 121 | 69.9 | 49.1 | 2 | |||
Recognition of stock-based compensation | 8.4 | 8.4 | |||||
Shares issued under compensation plans (in shares) | 1.4 | ||||||
Shares issued under compensation plans | 6.2 | $ 0.9 | 5.3 | ||||
Noncontrolling Interest, Increase from acquired subsidiaries | (26.9) | 2.9 | (29.8) | ||||
Common stock purchases (in shares) | (0.1) | ||||||
Common stock purchases | (3.3) | (3.3) | |||||
Dividends declared to noncontrolling interests | (1) | (1) | |||||
Ending balance (in shares) at Mar. 31, 2018 | 243.2 | ||||||
Ending balance at Mar. 31, 2018 | 1,524.4 | $ 243.3 | 1,371.1 | 61.4 | (61.7) | (192.7) | 103 |
Beginning balance (in shares) at Dec. 31, 2017 | 241.9 | ||||||
Beginning balance at Dec. 31, 2017 | 1,407.8 | $ 242.4 | 1,354.5 | (21.4) | (58.4) | (241) | 131.7 |
Comprehensive income (loss): | |||||||
Net income | 136.5 | ||||||
Total comprehensive income | 62.8 | ||||||
Ending balance (in shares) at Sep. 30, 2018 | 239.6 | ||||||
Ending balance at Sep. 30, 2018 | 1,346.1 | $ 245.1 | 1,399.4 | 123.2 | (211.9) | (312.4) | 102.7 |
Beginning balance (in shares) at Mar. 31, 2018 | 243.2 | ||||||
Beginning balance at Mar. 31, 2018 | 1,524.4 | $ 243.3 | 1,371.1 | 61.4 | (61.7) | (192.7) | 103 |
Comprehensive income (loss): | |||||||
Net income | 77.1 | 74.9 | 2.2 | ||||
Net realized and unrealized loss on derivatives, net of tax benefit | 4.3 | 4.3 | |||||
Long-term employee benefit plans, net of tax | (1.6) | (1.6) | |||||
Foreign currency translation, net of tax | (112.4) | (109.6) | (2.8) | ||||
Total comprehensive income | (32.6) | 74.9 | (106.9) | (0.6) | |||
Recognition of stock-based compensation | 9.7 | 9.7 | |||||
Shares issued under compensation plans (in shares) | 0.7 | ||||||
Shares issued under compensation plans | 4.9 | $ 1.2 | 3.7 | ||||
Common stock purchases (in shares) | (3.3) | ||||||
Common stock purchases | (100.5) | (100.5) | |||||
Ending balance (in shares) at Jun. 30, 2018 | 240.6 | ||||||
Ending balance at Jun. 30, 2018 | 1,405.9 | $ 244.5 | 1,384.5 | 136.3 | (162.2) | (299.6) | 102.4 |
Comprehensive income (loss): | |||||||
Net income | (11.6) | (13.1) | 1.5 | ||||
Net realized and unrealized loss on derivatives, net of tax benefit | 3.4 | 3.4 | |||||
Long-term employee benefit plans, net of tax | 0.2 | 0.2 | |||||
Foreign currency translation, net of tax | (17.6) | (16.4) | (1.2) | ||||
Total comprehensive income | (25.6) | (13.1) | (12.8) | 0.3 | |||
Recognition of stock-based compensation | 9.4 | 9.4 | |||||
Shares issued under compensation plans (in shares) | 0.7 | ||||||
Shares issued under compensation plans | 6.1 | $ 0.6 | 5.5 | ||||
Common stock purchases (in shares) | (1.7) | ||||||
Common stock purchases | (49.7) | (49.7) | |||||
Ending balance (in shares) at Sep. 30, 2018 | 239.6 | ||||||
Ending balance at Sep. 30, 2018 | 1,346.1 | $ 245.1 | 1,399.4 | 123.2 | (211.9) | (312.4) | 102.7 |
Beginning balance (in shares) at Dec. 31, 2018 | 235.6 | ||||||
Beginning balance at Dec. 31, 2018 | 1,310.5 | $ 245.3 | 1,409.5 | 198.6 | (312.2) | (336.1) | 105.4 |
Comprehensive income (loss): | |||||||
Net income | 44.1 | 43.4 | 0.7 | ||||
Net realized and unrealized loss on derivatives, net of tax benefit | (12.4) | (12.4) | |||||
Long-term employee benefit plans, net of tax | 0 | 0 | |||||
Foreign currency translation, net of tax | 13.3 | 12.8 | 0.5 | ||||
Total comprehensive income | 45 | 43.4 | 0.4 | 1.2 | |||
Recognition of stock-based compensation | 6.7 | 6.7 | |||||
Shares issued under compensation plans (in shares) | 1.1 | ||||||
Shares issued under compensation plans | 11.4 | $ 1.7 | 9.7 | ||||
Noncontrolling Interest, Increase from acquired subsidiaries | (26.4) | 5.7 | (32.1) | ||||
Common stock purchases (in shares) | (2.5) | ||||||
Common stock purchases | (65.8) | (65.8) | |||||
Dividends declared to noncontrolling interests | (1.1) | (1.1) | |||||
Ending balance (in shares) at Mar. 31, 2019 | 234.2 | ||||||
Ending balance at Mar. 31, 2019 | 1,279.6 | $ 247 | 1,431.6 | 241.3 | (378) | (335.7) | 73.4 |
Beginning balance (in shares) at Dec. 31, 2018 | 235.6 | ||||||
Beginning balance at Dec. 31, 2018 | 1,310.5 | $ 245.3 | 1,409.5 | 198.6 | (312.2) | (336.1) | 105.4 |
Comprehensive income (loss): | |||||||
Net income | 210.4 | ||||||
Total comprehensive income | $ 136.8 | ||||||
Shares issued under compensation plans (in shares) | 3.6 | ||||||
Ending balance (in shares) at Sep. 30, 2019 | 234.6 | ||||||
Ending balance at Sep. 30, 2019 | $ 1,339.7 | $ 249.6 | 1,463.9 | 401.5 | (417.5) | (411.8) | 54 |
Beginning balance (in shares) at Mar. 31, 2019 | 234.2 | ||||||
Beginning balance at Mar. 31, 2019 | 1,279.6 | $ 247 | 1,431.6 | 241.3 | (378) | (335.7) | 73.4 |
Comprehensive income (loss): | |||||||
Net income | 99.9 | 98.4 | 1.5 | ||||
Net realized and unrealized loss on derivatives, net of tax benefit | (17.6) | (17.6) | |||||
Long-term employee benefit plans, net of tax | 0.4 | 0.4 | |||||
Foreign currency translation, net of tax | (0.9) | (3.1) | 2.2 | ||||
Total comprehensive income | 81.8 | 98.4 | (20.3) | 3.7 | |||
Recognition of stock-based compensation | (1.4) | (1.4) | |||||
Shares issued under compensation plans (in shares) | 0.7 | ||||||
Shares issued under compensation plans | 14.5 | $ 1.2 | 13.3 | ||||
Changes in ownership of noncontrolling interests | (24.2) | (1.7) | (22.5) | ||||
Common stock purchases (in shares) | (1.6) | ||||||
Common stock purchases | (39.5) | (39.5) | |||||
Ending balance (in shares) at Jun. 30, 2019 | 233.3 | ||||||
Ending balance at Jun. 30, 2019 | 1,307.1 | $ 248.2 | 1,441.8 | 336 | (417.5) | (356) | 54.6 |
Comprehensive income (loss): | |||||||
Net income | 66.4 | 65.5 | 0.9 | ||||
Net realized and unrealized loss on derivatives, net of tax benefit | (3.9) | (3.9) | |||||
Long-term employee benefit plans, net of tax | 0.3 | 0.3 | |||||
Foreign currency translation, net of tax | (52.8) | (52.2) | (0.6) | ||||
Total comprehensive income | 10 | 65.5 | (55.8) | 0.3 | |||
Recognition of stock-based compensation | 4.2 | 4.2 | |||||
Shares issued under compensation plans (in shares) | 1.3 | ||||||
Shares issued under compensation plans | 19.3 | $ 1.4 | 17.9 | ||||
Changes in ownership of noncontrolling interests | (0.5) | 0 | (0.5) | ||||
Dividends declared to noncontrolling interests | (0.4) | (0.4) | |||||
Ending balance (in shares) at Sep. 30, 2019 | 234.6 | ||||||
Ending balance at Sep. 30, 2019 | $ 1,339.7 | $ 249.6 | $ 1,463.9 | $ 401.5 | $ (417.5) | $ (411.8) | $ 54 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Net realized and unrealized loss on derivatives, net of tax (benefit) | $ (0.7) | $ (2.7) | $ (2.2) | $ 0.2 | $ 0.4 | $ 1.6 |
Long-term employee benefit plans, net of (benefit) expense | 0.2 | (0.4) | 0.5 | 0.4 | 0 | (0.3) |
Foreign currency translation, net of tax | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net income | $ 210.4 | $ 136.5 |
Adjustment to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 267.3 | 274.9 |
Amortization of deferred financing costs and original issue discount | 6.7 | 5.8 |
Debt extinguishment and refinancing related costs | 0.2 | 8.4 |
Deferred income taxes | (5.6) | (1.8) |
Realized and unrealized foreign exchange losses, net | 1.5 | 16.2 |
Stock-based compensation | 9.5 | 27.5 |
Loss on divestiture | 3.4 | 0 |
Interest income on swaps designated as net investment hedges | (11) | (5.9) |
Other non-cash, net | (3.5) | (3.9) |
Changes in operating assets and liabilities: | ||
Trade accounts and notes receivable | (128.9) | (119.5) |
Inventories | (4) | (51.8) |
Prepaid expenses and other assets | (95) | (127.9) |
Accounts payable | 29.9 | 45.4 |
Other accrued liabilities | 0 | (33.6) |
Other liabilities | 8.9 | 75.2 |
Cash provided by operating activities | 289.8 | 245.5 |
Investing activities: | ||
Acquisitions, net of cash acquired | (2.1) | (79.2) |
Purchase of property, plant and equipment | (73.9) | (109.5) |
Proceeds from sale of consolidated joint venture, net of cash divested | 8.2 | 0 |
Interest proceeds on swaps designated as net investment hedges | 11 | 5.9 |
Other investing activities, net | (2.2) | 5.2 |
Cash used for investing activities | (59) | (177.6) |
Financing activities: | ||
Proceeds from long-term borrowings | 0 | 468.9 |
Payments on short-term borrowings | (29.5) | (33.8) |
Payments on long-term borrowings | (20) | (505.1) |
Financing-related costs | (1.5) | (4.9) |
Purchases of common stock | (105.3) | (147.8) |
Proceeds from option exercises | 46 | 17.2 |
Dividends paid to noncontrolling interests | (1.5) | (1) |
Investments in noncontrolling interests | (31.1) | (26.9) |
Deferred acquisition-related consideration | (2.1) | (6) |
Cash used for financing activities | (145) | (239.4) |
Increase (decrease) in cash | 85.8 | (171.5) |
Effect of exchange rate changes on cash | (12.1) | (10.5) |
Cash at beginning of period | 696.4 | 772.9 |
Cash at end of period | 770.1 | 590.9 |
Cash at end of period reconciliation: | ||
Cash and cash equivalents | 767.2 | 588.1 |
Restricted cash | $ 2.9 | $ 2.8 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting [Text Block] | (1) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at September 30, 2019 and December 31, 2018 , the results of operations, comprehensive income (loss) and changes in shareholders' equity for the three and nine months ended September 30, 2019 and 2018 , and cash flows for the nine months then ended. All intercompany balances and transactions have been eliminated. These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . 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 nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for a full year. Reclassifications During the nine months ended September 30, 2019 , the condensed consolidated statements of operations were updated to combine "Net sales" and "Other revenue" into "Net sales". The 2018 condensed consolidated statements of operations have been updated for comparability with the current year presentation. Correction of Immaterial Errors to Prior Period Financial Statements During the nine months ended September 30, 2019 , the Company identified and corrected an error that affected the previously-issued 2018 annual and interim financial statements. Specifically, the financial statements reflected an investment in noncontrolling interest payment of $26.9 million within investing activities as opposed to its appropriate classification within financing activities. The Company determined that these corrections were immaterial to the previously-issued financial statements. However, given the significance of the error and for comparability purposes, we have revised the condensed consolidated statements of cash flows for the nine months ended September 30, 2018 , and will revise annual periods in future filings. This revision has no impact on the consolidated or condensed consolidated statements of operations or balance sheets. Nine Months Ended September 30, 2018 As Reported Revised Cash used for investing activities $ (204.5 ) $ (177.6 ) Cash used for financing activities $ (212.5 ) $ (239.4 ) Recently Adopted Accounting Guidance In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Leases", which, together with amendments comprising ASC 842, requires lessees to identify arrangements that should be accounted for as leases and generally recognized, for operating and finance leases with terms exceeding twelve months, a right-of-use (or "ROU") asset and lease liability 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. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either the adoption date or the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We elected to adopt the new standard on January 1, 2019 and use the adoption date as our date of initial application. As a result, historical financial information will not be updated, and the disclosures required under the new standard will not be provided as of and for periods before January 1, 2019. See Note 7 for further information on the implementation of the standard. The new standard provides a number of optional practical expedients in transition. We have elected the package of practical expedients, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We have also elected the practical expedient pertaining to land easements which permits entities to forgo the evaluation of existing land easement arrangements in transition to determine if they contain a lease. We did not elect the use-of-hindsight practical expedient. The new standard also provides practical expedients for an entity’s ongoing accounting. We have elected the short term lease exception and we will not recognize ROU assets or lease liabilities for qualifying leases (leases with a term of less than 12 months from lease commencement). We also elected the accounting policy election to not separate lease and non-lease components for all asset classes. The Company implemented an outsourced software solution to support the ongoing accounting requirements that this standard will have on our consolidated financial statements. We have evaluated the completeness and accuracy of lease data entered into the software solution and updated our processes, policies and internal controls. Changes to our internal controls covered the identification, accounting and disclosure of leases both upon adoption and subsequent to adoption. Adoption of ASU 2016-02 at January 1, 2019 resulted in a one-time loss to retained earnings of $0.7 million on our condensed consolidated balance sheets and condensed consolidated statement of changes in shareholders’ equity related to the net difference of derecognition of existing assets and debt obligations associated with our leases historically accounted for as sale-leaseback financings, for which the ASU requires accounting for as a lease at the date of initial application. Of the accounting standards we have adopted in 2019, the below standard did not have a material impact: ASU Effective Date 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 Accounting Guidance Issued But Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses”. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires considerations of a broader range of reasonable and supportable information to inform credit loss estimates. The new standard is effective for fiscal years beginning after December 15, 2019, including interim reporting periods therein. The adoption of this standard is not expected to have a material impact on our financial statements. |
Revenue Revenue
Revenue Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE We recognize revenue at the point our contractual performance obligations with our customers are satisfied. This occurs at the point in time when control of our products transfer to the customer based on considerations of right to payment, transfer of legal title, physical possession, risks and rewards of ownership and customer acceptance. For the majority of our revenue, control transfers upon shipment of our products to our customers. Our remaining revenue is recorded upon delivery or consumption for our product sales or as incurred for services provided and royalties earned. For certain customer arrangements within our light vehicle, industrial and commercial vehicle end-markets, revenue is recognized upon shipment, as this is the point in time we have concluded that control of our product has transferred to our customer based on our considerations of the indicators of control in the contracts, including right of use and risk and reward of ownership. For consignment arrangements, revenue is recognized upon actual consumption by our customers, as this represents the point in time that control is determined to have transferred to the customer based on the contractual arrangement. In our refinish end-market, our product sales are typically supplied through a network of distributors. Control transfers and revenue is recognized when our products are delivered to our distribution customers. Variable consideration in the form of price, less discounts and rebates, are estimated and recorded, as a reduction to net sales, upon the sale of our products based on our ability to make a reasonable estimate of the amounts expected to be received or incurred. The estimates of variable consideration involve significant assumptions based on the best estimates of inventory held by distributors, applicable pricing, as well as the use of historical actuals for sales, discounts and rebates, which may result in changes in estimates in the future. Consideration for products in which control has transferred to our customers that is conditional on something other than the passage of time is recorded as a contract asset within prepaid expenses and other on the balance sheet. The contract asset balances at September 30, 2019 and December 31, 2018 were $39.1 million and $47.2 million , respectively. We provide certain customers with incremental up-front consideration, subject to clawback provisions, including Business Incentive Plan assets ("BIPs"), which is capitalized as a component of other assets and amortized over the estimated life of the contractual arrangement as a reduction of net sales. At September 30, 2019 and December 31, 2018 , the total carrying value of BIPs were $188.1 million and $190.8 million , respectively, and are presented within other assets on the condensed consolidated balance sheets. For the three and nine months ended September 30, 2019 and 2018, $17.7 million , $50.8 million , $16.8 million and $49.9 million , respectively, were amortized and reflected as reductions of net sales in the condensed consolidated statements of operations. The total carrying value of BIPs exclude other upfront incentives made in conjunction with long-term customer commitments of $85.5 million and $56.0 million at September 30, 2019 and December 31, 2018, respectively, which will be repaid in future periods. See Note 18 for disaggregated net sales by end-market. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS AND DIVESTITURES During the nine months ended September 30, 2019, we completed the previously announced sale of our 60% interest in a consolidated joint venture within our Performance Coatings segment. On the divestiture, we recorded a pre-tax gain of $0.5 million and a pre-tax loss of $3.4 million in our condensed consolidated statements of operations for the three and nine months ended September 30, 2019 , respectively. The joint venture sold was previously recorded as held for sale at March 31, 2019, with the corresponding assets and liabilities recorded at the lower of carrying value and fair value less cost to sell. The $0.5 million gain during the three months ended September 30, 2019 was the result of a change to the carrying value of the net assets divested. Other Activity During the nine months ended September 30, 2019 , we purchased additional interests in certain previously consolidated joint ventures within our industrial end-market, increasing our total ownership to 100% for total consideration of $31.1 million . These included the remaining 40% interest in a joint venture in our Asia Pacific region and the remaining 24.5% interest pursuant to the stock purchase agreement for a joint venture acquired during the year ended December 31, 2016. At September 30, 2019 , for any business combination completed after September 30, 2018 , we have not finalized the related purchase accounting and the amounts recorded represent preliminary values. We expect to finalize our purchase accounting during the respective measurement periods which will be no later than one year following the closing dates. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 to September 30, 2019 by reportable segment: Performance Coatings Transportation Coatings Total Balance at December 31, 2018 $ 1,151.5 $ 79.3 $ 1,230.8 Purchase accounting adjustments 1.0 — 1.0 Divestiture (5.6 ) — (5.6 ) Foreign currency translation (39.7 ) (2.8 ) (42.5 ) Balance at September 30, 2019 $ 1,107.2 $ 76.5 $ 1,183.7 Identifiable Intangible Assets The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: September 30, 2019 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted Average Amortization Periods (years) Technology $ 533.0 $ (292.9 ) $ 240.1 10.4 Trademarks - indefinite-lived 260.3 — 260.3 Indefinite Trademarks - definite-lived 98.0 (28.1 ) 69.9 15.8 Customer relationships 912.9 (255.2 ) 657.7 19.1 Other 15.3 (7.3 ) 8.0 5.0 Total $ 1,819.5 $ (583.5 ) $ 1,236.0 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted Average Amortization Periods (years) Technology $ 545.7 $ (260.7 ) $ 285.0 10.4 Trademarks—indefinite-lived 269.0 — 269.0 Indefinite Trademarks—definite-lived 100.6 (24.0 ) 76.6 15.8 Customer relationships 929.9 (222.9 ) 707.0 19.1 Other 15.7 (5.3 ) 10.4 5.1 Total $ 1,860.9 $ (512.9 ) $ 1,348.0 The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2019 and each of the succeeding five years is: Remainder of 2019 $ 29.8 2020 111.6 2021 111.0 2022 108.8 2023 70.2 2024 65.4 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In accordance with the applicable guidance for ASC 712, Nonretirement Postemployment Benefits , we accounted for termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated. We have incurred costs in connection with involuntary termination benefits associated with our corporate-related initiatives and cost-saving opportunities associated with our Axalta Way initiatives. During the three and nine months ended September 30, 2019 and 2018, we incurred restructuring costs, net of changes to estimates, of $29.2 million , $33.3 million , $81.4 million and $79.9 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 completed within 12 to 24 months from September 30, 2019 . The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2018 to September 30, 2019 : 2019 Activity Balance at December 31, 2018 $ 102.7 Expenses, net of changes to estimates 33.3 Payments made (34.5 ) Foreign currency translation (4.0 ) Balance at September 30, 2019 $ 97.5 The impacts to pre-tax earnings from incremental accelerated depreciation resulting from the previously announced closure of our manufacturing facility in Mechelen, Belgium site, for the three and nine months ended September 30, 2019 and 2018 were $5.4 million , $18.2 million , $4.2 million and $4.2 million , respectively, which were recorded to cost of goods sold on the condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees We guarantee certain of our customers’ obligations to third parties, whereby any default by our customers on their obligations could force us to make payments to the applicable creditors. At September 30, 2019 and December 31, 2018 , we had outstanding bank guarantees of $11.6 million and $12.7 million , respectively, which expire in 2019 or thereafter. We monitor the obligations to evaluate whether we have a liability at the balance sheet date, for which none existed at September 30, 2019 and December 31, 2018 . Other We are subject to various pending lawsuits, legal proceedings and other claims in the ordinary course of business, including civil, regulatory and environmental matters. These litigation matters may involve third-party indemnification obligations and/or insurance covering all or part of any potential damage against us. All of these matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the proceedings and other claims at this time, although 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. The potential effects, if any, on such condensed consolidated financial statements will be recorded in the period in which these matters are probable and estimable. We are involved in environmental remediation and ongoing compliance activities at several sites. The timing and duration of remediation and ongoing compliance activities are determined on a site by site basis depending on local regulations. The amounts recorded represent our estimable future remediation costs and other anticipated environmental liabilities. We have not recorded liabilities at sites where a liability is probable, but that a range of loss is not reasonably estimable. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis, however, could have a material adverse impact in a particular quarterly reporting period. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases, Operating Leases | LEASES We have operating and finance leases for certain of our technology centers, warehouses, office spaces, land, and equipment. As described within Note 1, we adopted ASU 2016-02, "Leases," on January 1, 2019 requiring, among other changes, operating and finance leases with terms exceeding twelve months to be recognized as ROU assets and lease liabilities on the balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease term is determined to be the non-cancelable period including any lessee renewal options which are considered to be reasonably certain of exercise. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company used judgment to determine an appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment. Certain of our lease agreements include rental payments based on an index or adjusted periodically for inflation. The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, variable lease expense also includes elements of a contract that is based on usage during the term. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases is summarized as follows: September 30, 2019 Assets Classification Operating lease assets, net Other assets (1) $ 96.3 Finance lease assets, net Property, plant and equipment, net (2) 67.1 Total leased assets $ 163.4 Liabilities Current Operating lease liabilities Other accrued liabilities $ 28.5 Finance lease liabilities Current portion of borrowings 2.9 Noncurrent Operating lease liabilities Other liabilities 70.9 Finance lease liabilities Long-term borrowings 62.1 Total lease liabilities $ 164.4 (1) Operating lease assets are recorded net of accumulated amortization of $13.8 million as of September 30, 2019 . (2) Finance lease assets are recorded net of accumulated amortization of $3.4 million as of September 30, 2019 . Components of lease expense are summarized as follows: Three Months Ended Nine Months Ended Finance lease cost Amortization of right-of-use assets $ 1.1 $ 3.1 Interest on lease liabilities 0.9 2.6 Operating lease cost 9.3 27.3 Variable lease cost 0.6 2.5 Short-term lease cost 0.4 0.8 Net lease cost $ 12.3 $ 36.3 Supplemental cash flow information related to leases is summarized as follows: Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 27.5 Operating cash flows from finance leases $ 2.6 Financing cash flows from finance leases $ 2.1 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 17.9 Finance leases $ — Lease term and discount rate information is summarized as follows: September 30, 2019 Weighted-average remaining lease term (years) Operating leases 5.1 Finance leases 17.0 Weighted-average discount rate Operating leases 3.9 % Finance leases 5.2 % Maturities of lease liabilities as of September 30, 2019 is as follows: Operating Leases Finance Leases Year Remainder of 2019 $ 7.2 $ 0.7 2020 30.9 5.4 2021 24.0 5.5 2022 16.9 5.6 2023 12.0 5.7 Thereafter 22.6 78.4 Total lease payments $ 113.6 $ 101.3 Less: imputed interest 14.2 36.3 Present value of lease liabilities $ 99.4 $ 65.0 As discussed in Note 1, we have elected the transition methodology to apply the standard at the beginning of the period of adoption, January 1, 2019, through a cumulative-effect adjustment to retained earnings. Under this transition method, the application date of the new standard shall begin in the reporting period in which we have adopted the standard. For comparability purposes, the following table reflects the total remaining cash payments related to all transactions during the rental term at December 31, 2018 associated with three lease arrangements that were treated as sale-leaseback financing transactions under ASC 840 and disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018: Sale-leaseback Obligations 2019 $ 5.3 2020 5.4 2021 5.4 2022 5.7 2023 5.7 Thereafter 77.1 Total minimum payments $ 104.6 At December 31, 2018, future minimum payments under non-cancelable operating leases under ASC 840 were as follows: Operating Leases 2019 $ 34.6 2020 23.5 2021 17.1 2022 13.2 2023 11.5 Thereafter 16.6 Total minimum payments $ 116.5 |
Lessee, Finance Leases | LEASES We have operating and finance leases for certain of our technology centers, warehouses, office spaces, land, and equipment. As described within Note 1, we adopted ASU 2016-02, "Leases," on January 1, 2019 requiring, among other changes, operating and finance leases with terms exceeding twelve months to be recognized as ROU assets and lease liabilities on the balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease term is determined to be the non-cancelable period including any lessee renewal options which are considered to be reasonably certain of exercise. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company used judgment to determine an appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment. Certain of our lease agreements include rental payments based on an index or adjusted periodically for inflation. The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, variable lease expense also includes elements of a contract that is based on usage during the term. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases is summarized as follows: September 30, 2019 Assets Classification Operating lease assets, net Other assets (1) $ 96.3 Finance lease assets, net Property, plant and equipment, net (2) 67.1 Total leased assets $ 163.4 Liabilities Current Operating lease liabilities Other accrued liabilities $ 28.5 Finance lease liabilities Current portion of borrowings 2.9 Noncurrent Operating lease liabilities Other liabilities 70.9 Finance lease liabilities Long-term borrowings 62.1 Total lease liabilities $ 164.4 (1) Operating lease assets are recorded net of accumulated amortization of $13.8 million as of September 30, 2019 . (2) Finance lease assets are recorded net of accumulated amortization of $3.4 million as of September 30, 2019 . Components of lease expense are summarized as follows: Three Months Ended Nine Months Ended Finance lease cost Amortization of right-of-use assets $ 1.1 $ 3.1 Interest on lease liabilities 0.9 2.6 Operating lease cost 9.3 27.3 Variable lease cost 0.6 2.5 Short-term lease cost 0.4 0.8 Net lease cost $ 12.3 $ 36.3 Supplemental cash flow information related to leases is summarized as follows: Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 27.5 Operating cash flows from finance leases $ 2.6 Financing cash flows from finance leases $ 2.1 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 17.9 Finance leases $ — Lease term and discount rate information is summarized as follows: September 30, 2019 Weighted-average remaining lease term (years) Operating leases 5.1 Finance leases 17.0 Weighted-average discount rate Operating leases 3.9 % Finance leases 5.2 % Maturities of lease liabilities as of September 30, 2019 is as follows: Operating Leases Finance Leases Year Remainder of 2019 $ 7.2 $ 0.7 2020 30.9 5.4 2021 24.0 5.5 2022 16.9 5.6 2023 12.0 5.7 Thereafter 22.6 78.4 Total lease payments $ 113.6 $ 101.3 Less: imputed interest 14.2 36.3 Present value of lease liabilities $ 99.4 $ 65.0 As discussed in Note 1, we have elected the transition methodology to apply the standard at the beginning of the period of adoption, January 1, 2019, through a cumulative-effect adjustment to retained earnings. Under this transition method, the application date of the new standard shall begin in the reporting period in which we have adopted the standard. For comparability purposes, the following table reflects the total remaining cash payments related to all transactions during the rental term at December 31, 2018 associated with three lease arrangements that were treated as sale-leaseback financing transactions under ASC 840 and disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018: Sale-leaseback Obligations 2019 $ 5.3 2020 5.4 2021 5.4 2022 5.7 2023 5.7 Thereafter 77.1 Total minimum payments $ 104.6 At December 31, 2018, future minimum payments under non-cancelable operating leases under ASC 840 were as follows: Operating Leases 2019 $ 34.6 2020 23.5 2021 17.1 2022 13.2 2023 11.5 Thereafter 16.6 Total minimum payments $ 116.5 |
Long-term Employee Benefits
Long-term Employee Benefits | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 1.8 $ 2.2 $ 5.4 $ 6.7 Interest cost 3.2 3.2 9.8 10.0 Expected return on plan assets (3.4 ) (3.9 ) (10.4 ) (12.2 ) Amortization of actuarial loss, net 0.5 0.3 1.4 0.9 Amortization of prior service cost, net — — — (0.1 ) Net periodic benefit cost $ 2.1 $ 1.8 $ 6.2 $ 5.3 All non-service components of net periodic benefit cost are recorded in other (income) expense, net within the accompanying condensed consolidated statements of operations. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION During the three and nine months ended September 30, 2019 and 2018, we recognized expenses of $4.2 million , $9.5 million , $9.4 million and $27.5 million , respectively, for stock-based compensation, which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized tax benefits of $0.4 million , $1.5 million , $1.8 million and $5.2 million for the three and nine months ended September 30, 2019 and 2018, respectively. 2019 Activity During 2019 , we granted non-qualified service-based stock options, restricted stock units and performance share units to certain employees and directors. All awards were granted under the Company's Amended and Restated 2014 Incentive Award Plan. The performance share units are subject to certain performance and market conditions, in addition to the service-based vesting conditions. A summary of award activity by type for the nine months ended September 30, 2019 is presented below. Stock Options Awards (in millions) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (years) Outstanding at January 1, 2019 7.2 $ 19.32 Granted 0.8 26.91 Exercised (3.6 ) 12.63 Forfeited (0.8 ) 28.94 Outstanding at September 30, 2019 3.6 $ 25.77 Vested and expected to vest at September 30, 2019 3.6 $ 25.77 $ 17.6 6.12 Exercisable at September 30, 2019 2.5 $ 24.84 $ 15.3 5.02 Cash received by the Company upon exercise of options for the nine months ended September 30, 2019 was $46.0 million . Excess tax benefits on these exercises were $11.3 million . At September 30, 2019 , there is $3.9 million of unrecognized expense relating to unvested stock options that is expected to be amortized over a weighted average period of 1.5 years . Restricted Stock Awards and Restricted Stock Units Awards/Units (millions) Weighted-Average Fair Value Outstanding at January 1, 2019 1.6 $ 29.12 Granted 0.7 26.98 Vested (0.7 ) 28.53 Forfeited (0.4 ) 28.56 Outstanding at September 30, 2019 1.2 $ 28.38 Tax shortfall expenses on the vesting of restricted stock and restricted stock units during the nine months ended September 30, 2019 was $0.3 million . At September 30, 2019 , there is $16.4 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 1.5 years . Performance Stock Awards and Performance Share Units Awards/Units (millions) Weighted-Average Fair Value Outstanding at January 1, 2019 0.8 $ 31.82 Granted 0.3 29.10 Vested — — Forfeited (0.6 ) 30.38 Outstanding at September 30, 2019 0.5 $ 32.11 At September 30, 2019 , there is $8.2 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 2.1 years . The forfeitures include performance stock awards and performance share units that did not meet the performance target required for vesting. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | OTHER (INCOME) EXPENSE, NET Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Foreign exchange losses, net $ 0.7 $ 7.0 $ 5.3 $ 8.7 Debt extinguishment and refinancing related costs — — 0.2 8.4 Other miscellaneous income, net (2.6 ) (1.5 ) (9.3 ) (5.7 ) Total $ (1.9 ) $ 5.5 $ (3.8 ) $ 11.4 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rates for the nine months ended September 30, 2019 and 2018 are as follows: Nine Months Ended September 30, 2019 2018 Effective Tax Rate 19.3 % 26.0 % The lower effective tax rate for the nine months ended September 30, 2019 was primarily due to the favorable impact of changes in valuation allowance (net of adjustments to foreign taxes), an increase in net excess tax benefits related to stock-based compensation of $11.0 million compared with $6.5 million for the nine months ended September 30, 2019 and 2018 , respectively, and the unfavorable impact associated with the financial impacts surrounding the closure of our Belgium manufacturing facility in 2018. These adjustments are partially offset by the unfavorable impact of net currency exchange losses in 2019 and a one-time favorable impact related to the reduction of the U.S. Tax Cuts and Jobs Act tax charge which lowered the effective tax rate in 2018. The effective tax rate for the nine months ended September 30, 2019 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | EARNINGS (LOSS) PER COMMON SHARE Basic earnings per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share includes the effect of potential dilution from the hypothetical exercise of outstanding stock options and vesting of restricted shares and performance shares. A reconciliation of our basic and diluted earnings per common share is as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2019 2018 2019 2018 Net income (loss) to common shareholders $ 65.5 $ (13.1 ) $ 207.3 $ 131.7 Basic weighted average shares outstanding 233.9 238.7 233.8 239.9 Diluted weighted average shares outstanding 235.5 238.7 235.8 244.2 Earnings (loss) per common share: Basic earnings (loss) per share $ 0.28 $ (0.05 ) $ 0.89 $ 0.55 Diluted earnings (loss) per share $ 0.28 $ (0.05 ) $ 0.88 $ 0.54 The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 were 2.4 million , 2.8 million , 8.8 million and 2.6 million |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, Net | ACCOUNTS AND NOTES RECEIVABLE, NET September 30, 2019 December 31, 2018 Accounts receivable - trade, net (1) $ 833.5 $ 739.9 Notes receivable 16.8 36.1 Other 85.4 84.8 Total $ 935.7 $ 860.8 (1) Allowance for doubtful accounts was $13.8 million and $15.4 million at September 30, 2019 and December 31, 2018 , respectively. Bad debt expense of $1.1 million , $3.7 million , $0.6 million and $1.5 million was included within selling, general and administrative expenses for the three and nine months ended September 30, 2019 and 2018 , respectively. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES September 30, 2019 December 31, 2018 Finished products $ 328.1 $ 334.0 Semi-finished products 107.6 108.0 Raw materials 140.6 149.9 Stores and supplies 21.0 21.1 Total $ 597.3 $ 613.0 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET September 30, 2019 December 31, 2018 Property, plant and equipment $ 2,200.4 $ 2,218.8 Accumulated depreciation (983.7 ) (920.6 ) Property, plant, and equipment, net $ 1,216.7 $ 1,298.2 Depreciation expense amounted to $40.2 million , $129.3 million , $45.5 million and $134.7 million for the three and nine months ended September 30, 2019 and 2018 , respectively. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Borrowings are summarized as follows: September 30, 2019 December 31, 2018 2024 Dollar Term Loans $ 2,393.5 $ 2,411.8 2024 Dollar Senior Notes 500.0 500.0 2024 Euro Senior Notes 365.9 383.3 2025 Euro Senior Notes 491.5 514.9 Short-term and other borrowings 107.5 103.8 Unamortized original issue discount (11.0 ) (12.6 ) Unamortized deferred financing costs (32.7 ) (37.2 ) Total borrowings $ 3,814.7 $ 3,864.0 Less: Short-term borrowings $ 18.1 $ 17.9 Current portion of long-term borrowings 24.3 24.3 Long-term debt $ 3,772.3 $ 3,821.8 Senior Secured Credit Facilities, as amended On December 15, 2016, Axalta Coating Systems Dutch B B.V. (“Dutch B B.V.”) and its indirect 100% owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. (“Axalta US Holdings”) executed the fourth amendment (the "Fourth Amendment") to the credit agreement (the “Credit Agreement”) governing our Senior Secured Credit Facilities (as defined below). The Fourth Amendment (i) converted all of the outstanding U.S. 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 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, 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 upsized tranche of term loans with principal of $2,000.0 million (the "2024 Dollar Term Loans"). The 2024 Dollar Term Loans were issued at 99.875% of par, or a $2.5 million discount. On April 11, 2018, Dutch B B.V. and Axalta US Holdings executed the sixth amendment to the Credit Agreement (the "Sixth Amendment"). The Sixth Amendment repriced the 2024 Dollar Term Loans and increased the aggregate principal balance by $475.0 million to $2,430.0 million . The increased principal balance of the 2024 Dollar Term Loans under the Sixth Amendment was issued at 99.750% of par or a $6.0 million discount. Proceeds from the Sixth Amendment, along with cash on the balance sheet, were used to extinguish the existing 2023 Euro Term Loans. The 2024 Dollar Term Loans together with the Revolving Credit Facility, as defined herein, are referred to as the "Senior Secured Credit Facilities." On October 31, 2018, Dutch B B.V. and Axalta US Holdings, the Company, and certain other subsidiaries of the Company as guarantors entered into the seventh amendment to the Credit Agreement (the "Seventh Amendment"). The Seventh Amendment amended the Credit Agreement to, among other things, (i) allow for the Company and certain wholly owned subsidiaries of the Company to be added as guarantors under the Credit Agreement, (ii) provide that (A) the covenants in the Credit Agreement generally apply to the Company and its restricted subsidiaries and (B) upon election at any time thereafter, a successor holdings guarantor may be designated and, upon the effectiveness of the guarantee of such successor parent guarantor, the covenants in the Credit Agreement will generally apply to such successor holdings guarantor and its restricted subsidiaries, (iii) otherwise amend the Credit Agreement in order to effect certain corporate transactions as part of a potential internal reorganization of certain of the Company's subsidiaries and certain potential future reorganizations involving the Company and (iv) update guarantee limitations for certain of the guarantors. Interest was and is payable quarterly on both the 2023 Term Loans and 2024 Dollar Term Loans. The 2024 Dollar Term Loans are subject to a floor of zero plus an applicable rate of 1.75% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 0.75% per annum for Base Rate Loans as defined in the Credit Agreement. Prior to the Sixth Amendment, interest on the 2024 Dollar Term Loans was subject to a floor of zero , plus an applicable rate. The applicable rate for such 2024 Dollar Term Loans was 2.00% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 1.00% per annum for Base Rate Loans as defined in the Credit Agreement. Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the 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 the Company and the other guarantors. The 2024 Dollar Term Loans mature on June 1, 2024. Principal is paid quarterly 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 September 30, 2019 , the Company is in compliance with all covenants under the Senior Secured Credit Facilities. Revolving Credit Facility On June 28, 2019, (the "Eighth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the eighth amendment to the Credit Agreement (the "Eighth Amendment") which impacted the Revolving Credit Facility by (i) extending the maturity date to the earlier of March 2, 2024, the date of termination in whole of the Revolving Credit Facility, or the date that is 91 days prior to the maturity of the term loans borrowed under the Credit Agreement, and (ii) reducing the applicable interest margins on any outstanding borrowings. Under the Eighth Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to an interest margin of 1.50% for loans based on the Adjusted Eurocurrency Rate and 0.50% for loans based on the Base Rate with, in each case, a 0.25% increase when its First Lien Net Leverage Ratio is greater than or equal to 1.25 :1.00 but less than or equal to 2.25 :1.00 and another 0.25% increase when its First Lien Net Leverage Ratio is greater than 2.25 :1.00. At September 30, 2019 , the financial covenant is not applicable as there were no borrowings. Prior to the Eighth Amendment, interest on any outstanding borrowings under the Revolving Credit Facility was subject to a floor of zero for Adjusted Eurocurrency Rate Loans 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 was 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 were to fall 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 $700.0 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 September 30, 2019 and December 31, 2018 , letters of credit issued under the Revolving Credit Facility totaled $37.5 million and $44.8 million , respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $362.5 million and $355.2 million at September 30, 2019 and December 31, 2018 , respectively. Significant Transactions During the nine months ended September 30, 2019, in connection with the Eighth Amendment discussed above, we recorded $1.8 million of incremental deferred financing costs directly associated with the modification of the Revolving Credit Facility. During the nine months ended September 30, 2018, in connection with the Sixth Amendment discussed above, we recorded a loss on extinguishment and other financing-related costs of $8.4 million , of which $2.9 million related to the 2023 Euro Term Loan and $5.5 million related to the 2024 Dollar Term Loans. The loss was comprised of the write off of unamortized deferred financing costs and original issue discounts of $3.1 million and $0.7 million , respectively, and other fees directly associated with the Sixth Amendment of $4.6 million . Significant Terms of the Senior Notes On August 16, 2016, Axalta Coating Systems, LLC (the "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”). On September 27, 2016, Dutch B B.V. (the "Dutch Issuer" and together with the U.S. Issuer, the "Issuers"), issued €450.0 million in aggregate principal amount of 3.750% Euro Senior Unsecured Notes due January 2025 (the “2025 Euro Senior Notes” and together with the 2024 Senior Notes, the "Senior Notes"). The indentures governing the Senior Notes contain covenants that restrict the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates. On October 26, 2018, the U.S. Issuer and the party thereto entered into a seventh supplemental indenture (the “2024 Seventh Supplemental Indenture”) to the 2024 Senior Notes. In addition, on October 26, 2018, the Dutch Issuer and the new guarantors party thereto entered into a seventh supplemental indenture (the “2025 Seventh Supplemental Indenture” and, together with the 2024 Seventh Supplemental Indenture, the “October 2018 Supplemental Indentures”) to the 2025 Euro Senior Notes. The October 2018 Supplemental Indentures permit the Company and its subsidiaries to effect certain corporate transactions as part of a potential internal reorganization of certain of the Company's subsidiaries (the "Proposed Restructuring") and certain potential future reorganizations involving the Company. Each of the October 2018 Supplemental Indentures amended the applicable indenture in order to, among other things, (i) add the Company and certain wholly owned subsidiaries of the Company as guarantors of the applicable Senior Notes, (ii) provide that (A) the covenants of the applicable Indenture generally apply to the Company and its restricted subsidiaries and (B) upon an election by the relevant Issuer at any time thereafter, a successor parent guarantor may be designated and, upon the effectiveness of the guarantee of such successor parent guarantor, the covenants of the applicable Indenture will generally apply to such successor parent guarantor and its restricted subsidiaries, (iii) otherwise amend the applicable Indenture in order to effect the Proposed Restructuring (as defined below) and (iv) update guarantee limitations for certain of the guarantors. In connection with the October 2018 Supplemental Indentures above, the Company became the parent guarantor of the Senior Notes. (i) 2024 Dollar Senior Notes The 2024 Dollar Senior Notes were issued at 99.951% of par, or $2.0 million discount, and are due August 15, 2024. The 2024 Dollar Senior Notes bear interest at 4.875% 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 % 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, are jointly and severally guaranteed on a senior unsecured basis by the Company and each of its 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 U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the U.S. Issuer and guarantors. The 2024 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the 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 % 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, are jointly and severally guaranteed on a senior unsecured basis by the Company and each of its 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 U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the 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 2020 102.813 % 2021 101.875 % 2022 100.938 % 2023 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, are jointly and severally guaranteed on a senior unsecured basis by the Company and each of its existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities (other than the Dutch Issuer). 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 September 30, 2019 . Remainder of 2019 $ 21.0 2020 26.6 2021 26.6 2022 54.1 2023 27.0 Thereafter 3,703.1 Total $ 3,858.4 |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments, Hedging Activities and Fair Value Measurements | FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS Fair value of financial instruments Equity securities with readily determinable fair values - Balances of equity securities are recorded within other assets, with any changes in fair value recorded within other expense, net. The fair values of equity securities are based upon quoted market prices, which are considered Level 1 inputs. Long-term borrowings - The estimated fair values of these borrowings are based on recent trades, as reported by a third-party pricing service. Due to the infrequency of trades, these inputs are considered to be Level 2 inputs. Derivative instruments - The Company’s interest rate caps, interest rate swaps and cross-currency swaps are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are included in the Level 2 hierarchy. The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at September 30, 2019 and December 31, 2018 . September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Prepaid expenses and other current assets: Interest rate caps (1) $ — $ — $ — $ — $ — $ 4.5 $ — $ 4.5 Cross-currency swaps (2) — 14.6 — 14.6 — 14.1 — 14.1 Other assets: Interest rate caps (1) — — — — — 1.4 — 1.4 Cross-currency swaps (2) — 18.8 — 18.8 — — — — Investments in equity securities 0.6 — — 0.6 0.7 — — 0.7 Liabilities: Other accrued liabilities: Interest rate caps (1) — 1.0 — 1.0 — — — — Interest rate swaps (1) — 7.6 — 7.6 — — — — Other liabilities: Interest rate caps (1) — 1.6 — 1.6 — — — — Interest rate swaps (1) — 27.3 — 27.3 — 2.9 — 2.9 Cross-currency swaps (2) — — — — — 8.8 — 8.8 Long-term borrowings: 2024 Dollar Senior Notes — 520.3 — 520.3 — 474.9 — 474.9 2024 Euro Senior Notes — 378.1 — 378.1 — 381.1 — 381.1 2025 Euro Senior Notes — 509.1 — 509.1 — 497.5 — 497.5 2024 Dollar Term Loans — 2,396.5 — 2,396.5 — 2,276.1 — 2,276.1 (1) Cash flow hedge (2) Net investment hedge 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 and Net Investment Hedges Interest Rate Caps Designated as Cash Flow Hedges During the year ended December 31, 2017, we entered into four 1.5% interest rate caps with aggregate notional amounts totaling $850.0 million to hedge the variable interest rate exposures on our 2024 Dollar Term Loans. Three of these interest rate caps, comprising $600.0 million of the notional value, expire December 31, 2019 and had a deferred premium of $8.6 million at inception. The fourth interest rate cap, comprising the remaining $250.0 million of the notional value, expires December 31, 2021 and had a deferred premium of $8.1 million at inception. All deferred premiums are paid quarterly over the term of the respective interest rate caps. These interest rate caps are marked to market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive loss ("AOCI") and reclassified to interest expense in the same period or periods during which the hedged transactions affect earnings. Interest Rate Swaps Designated as Cash Flow Hedges During the three months ended June 30, 2018, we entered into three interest rate swaps with aggregate notional amounts totaling $475.0 million to hedge interest rate exposures related to variable rate borrowings under the 2024 Dollar Term Loans. Under the terms of the interest rate swap agreements, the Company is required to pay the counter-parties a stream of fixed interest payments at a rate of 2.72% and in turn, receives variable interest payments based on 3-month LIBOR from the counter-parties. The interest rate swaps are designated as cash flow hedges and expire on March 31, 2023. These interest rate swaps are marked to market at each reporting date and any unrealized gains or losses are included in AOCI and reclassified to interest expense in the same period or periods during which the hedged transactions affect earnings. During the three months ended March 31, 2019, we entered into two interest rate swaps with aggregate notional amounts totaling $500.0 million , effective December 31, 2019, to hedge interest rate exposure associated with the 2024 Dollar Term Loans. Under the terms of the interest rate swap agreements, the Company is required to pay the counter-parties a stream of fixed interest payments at a rate of 2.59% and in turn, receives variable interest payments based on 3-month LIBOR from the counter-parties. The interest rate swaps are designated as cash flow hedges and expire on December 31, 2022. These interest rate swaps are marked to market at each reporting date and any unrealized gains or losses are included in AOCI and reclassified to interest expense in the same period or periods during which the hedged transactions affect earnings. Cross-Currency Swaps Designated as Net Investment Hedges During the three months ended June 30, 2018, we entered into three fixed-for-fixed cross-currency swaps with aggregate notional amounts totaling $475.0 million to hedge the variability of exchange rate impacts between the U.S. Dollar and Euro. Under the terms of the cross-currency swap agreements, the Company has notionally exchanged $475.0 million at a weighted average interest rate of 4.47% for €387.2 million at a weighted average interest rate of 1.95% . The cross-currency swaps are designated as net investment hedges and expire on March 31, 2023 . These cross-currency swaps are marked to market at each reporting date and any unrealized gains or losses are included in unrealized currency translation adjustments, within AOCI. During the three months ended December 31, 2018, we settled three fixed-for-fixed cross-currency swaps previously executed in 2018 resulting in cash proceeds of $22.5 million . Concurrently, we notionally exchanged $475.0 million at a weighted average interest rate of 4.47% for €416.6 million at a weighted average interest rate of 1.44% . The cross-currency swaps are designated as net investment hedges and expire on March 31, 2023. These cross-currency swaps are marked to market at each reporting date and any unrealized gains or losses are included in unrealized currency translation adjustments, within AOCI. The following table presents the gains (losses) included in AOCI for derivative instruments that qualify and have been designated as cash flow and net investment hedges: September 30, 2019 December 31, 2018 AOCI: Interest rate caps (cash flow hedges) $ 4.3 $ (3.4 ) Interest rate swaps (cash flow hedges) 34.9 3.0 Cross-currency swaps (net investment hedges) (33.3 ) (27.7 ) Total AOCI $ 5.9 $ (28.1 ) Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The following tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2019 and 2018 for these cash flow and net investment hedges. For the Three Months Ended September 30, 2019 2018 Derivatives in Cash Flow and Net Investment Hedges Location of (Gain) Loss Recognized in Income on Derivatives Net Amount of (Gain) Loss Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Net Amount of (Gain) Loss Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Interest rate caps Interest expense, net $ 0.3 $ 0.1 $ (1.1 ) $ (0.7 ) Interest rate swaps Interest expense, net 4.8 0.4 (2.5 ) 0.5 Cross-currency swaps Interest expense, net (24.2 ) (3.8 ) 5.5 (3.2 ) For the Nine Months Ended September 30, 2019 2018 Derivatives in Cash Flow and Net Investment Hedges Location of (Gain) Loss Recognized in Income on Derivatives Net Amount of (Gain) Loss Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Net Amount of (Gain) Loss Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Interest rate caps Interest expense, net $ 6.2 $ (1.5 ) $ (11.5 ) $ (1.4 ) Interest rate swaps Interest expense, net 32.4 0.5 (5.0 ) 0.9 Cross-currency swaps Interest expense, net (39.1 ) (11.0 ) (18.4 ) (5.9 ) Over the next 12 months, we expect losses of $9.9 million pertaining to cash flow hedges to be reclassified from AOCI into earnings, related to our interest rate caps and interest rate swaps. Derivative Instruments Not Designated as Cash Flow Hedges We periodically enter into foreign currency forward and option contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other income, net in the condensed consolidated statement of operations. During the year ended December 31, 2017, we purchased a 1.25% interest rate cap with a notional amount of €388.0 million to hedge the variable interest rate exposures on our 2023 Euro Term Loans. We paid a premium equal to $0.6 million for the interest rate cap which is effective 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 fair value of this interest rate cap at September 30, 2019 was zero . Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows: Derivatives Not Designated as Hedging Instruments under ASC 815 Location of (Gain) Loss Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Foreign currency forward contracts Other (income) expense, net $ 2.3 $ (3.0 ) $ 4.1 $ (7.6 ) |
Segments
Segments | 9 Months Ended |
Sep. 30, 2019 | |
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. During the nine months ended September 30, 2019 , Axalta transitioned to using Adjusted EBIT as the primary measure to evaluate financial performance of the operating segments and allocate resources. Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. The following table presents relevant information of our reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales (1) : Refinish $ 441.5 $ 441.3 $ 1,294.3 $ 1,303.9 Industrial 282.2 314.9 899.4 969.3 Total Net sales Performance Coatings 723.7 756.2 2,193.7 2,273.2 Light Vehicle 295.7 303.7 917.7 990.2 Commercial Vehicle 87.6 86.1 272.4 266.8 Total Net sales Transportation Coatings 383.3 389.8 1,190.1 1,257.0 Total Net sales $ 1,107.0 $ 1,146.0 $ 3,383.8 $ 3,530.2 Equity in earnings in unconsolidated affiliates: Performance Coatings $ 0.2 $ 0.2 $ 0.4 $ 0.3 Transportation Coatings (0.1 ) — (0.1 ) 0.3 Total $ 0.1 $ 0.2 $ 0.3 $ 0.6 September 30, 2019 December 31, 2018 Investment in unconsolidated affiliates: Performance Coatings $ 2.3 $ 2.7 Transportation Coatings 12.5 12.7 Total $ 14.8 $ 15.4 (1) The Company has no intercompany sales between segments. (2) Net sales by segment for the three and nine months ended September 30, 2018 were recast to include amounts previously classified as other revenue. See Note 1 for further information on the reclassification. The following table reconciles our segment operating performance to income before income taxes for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Segment Adjusted EBIT (1) : Performance Coatings $ 124.9 $ 104.1 $ 331.1 $ 289.0 Transportation Coatings 37.2 25.6 111.8 108.9 Total (2) 162.1 129.7 442.9 397.9 Interest expense, net 40.2 39.8 122.5 118.5 Debt extinguishment and refinancing related costs (a) — — 0.2 8.4 Termination benefits and other employee related costs (b) 29.2 82.4 33.3 80.2 Consulting and advisory (c) 3.0 — 3.8 — Offering and transactional costs (d) 0.1 0.8 0.9 0.9 (Gain) loss on divestiture (e) (0.5 ) — 3.4 — Accelerated depreciation (f) 5.4 4.2 18.2 4.2 Indemnity (income) losses (g) — — (0.2 ) 0.9 Change in fair value of equity investments (h) — — — 0.4 Income before income taxes $ 84.7 $ 2.5 $ 260.8 $ 184.4 (1) The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBIT is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents Adjusted EBIT adjusted for the select items referred to above. (2) Does not represent Axalta’s Adjusted EBIT referenced elsewhere by the Company. (a) Represents expenses associated with the restructuring and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. (b) Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance. (c) Represents legal and advisory fees pertaining to our previously announced comprehensive review of strategic alternatives. These amounts are not considered indicative of our ongoing performance. (d) Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance. (e) Represents the impacts recognized on the sale of our interest in a joint venture business, which is not considered indicative of our ongoing operating performance. (f) Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance. (g) Represents indemnity (income) losses associated with the acquisition by Axalta of the DuPont Performance Coatings business, which we do not consider indicative of our ongoing operating performance. (h) Represents mark to market impacts of our equity investments, which we do not consider to be indicative of our ongoing operating performance. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE LOSS Unrealized Currency Translation Adjustments Pension Adjustments Unrealized Gain (Loss) on Derivatives Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2018 $ (299.4 ) $ (36.4 ) $ (0.3 ) $ (336.1 ) Current year deferrals to AOCI 12.8 — (11.4 ) 1.4 Reclassifications from AOCI to Net income (loss) — — (1.0 ) (1.0 ) Net Change 12.8 — (12.4 ) 0.4 Balance at March 31, 2019 (286.6 ) (36.4 ) (12.7 ) (335.7 ) Current year deferrals to AOCI (5.7 ) (0.1 ) (17.3 ) (23.1 ) Reclassifications from AOCI to Net income (loss) 2.6 0.5 (0.3 ) 2.8 Net Change (3.1 ) 0.4 (17.6 ) (20.3 ) Balance at June 30, 2019 (289.7 ) (36.0 ) $ (30.3 ) (356.0 ) Current year deferrals to AOCI (52.2 ) — (4.4 ) (56.6 ) Reclassifications from AOCI to Net income (loss) — 0.3 0.5 0.8 Net Change (52.2 ) 0.3 (3.9 ) (55.8 ) Balance at September 30, 2019 $ (341.9 ) $ (35.7 ) $ (34.2 ) $ (411.8 ) The income tax provisions related to the changes in pension benefits for the three and nine months ended September 30, 2019 was $0.2 million and $0.3 million , respectively. The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2019 was $14.1 million . The income tax benefits related to the change in the unrealized loss on derivatives for the three and nine months ended September 30, 2019 was $0.7 million and $5.6 million , respectively. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at September 30, 2019 was $5.1 million . Unrealized Currency Translation Adjustments Pension Adjustments Unrealized Unrealized Gain (Loss) on Derivatives Accumulated Balance at December 31, 2017 $ (208.8 ) $ (31.4 ) $ 0.8 $ (1.6 ) $ (241.0 ) Cumulative effect of an accounting change — — (0.8 ) — (0.8 ) Balance at January 1, 2018 (208.8 ) (31.4 ) — (1.6 ) (241.8 ) Current year deferrals to AOCI 42.2 — — 6.4 48.6 Reclassifications from AOCI to Net income (loss) — 0.6 — (0.1 ) 0.5 Net Change 42.2 0.6 — 6.3 49.1 Balance at March 31, 2018 (166.6 ) (30.8 ) — 4.7 (192.7 ) Current year deferrals to AOCI (109.6 ) (1.5 ) — 4.5 (106.6 ) Reclassifications from AOCI to Net income (loss) — (0.1 ) — (0.2 ) (0.3 ) Net Change (109.6 ) (1.6 ) — 4.3 (106.9 ) Balance at June 30, 2018 (276.2 ) (32.4 ) — 9.0 (299.6 ) Current year deferrals to AOCI (16.4 ) — — 3.5 (12.9 ) Reclassifications from AOCI to Net income (loss) — 0.2 — (0.1 ) 0.1 Net Change (16.4 ) 0.2 — 3.4 (12.8 ) Balance at September 30, 2018 $ (292.6 ) $ (32.2 ) $ — $ 12.4 $ (312.4 ) The income tax provisions related to the changes in pension benefits for the three and nine months ended September 30, 2018 was $0.4 million and $0.1 million , respectively. The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2018 was $12.9 million . The income tax provisions related to the change in the unrealized loss on derivatives for the three and nine months ended September 30, 2018 was $0.2 million and $2.2 million , respectively. The cumulative income tax provision related to the adjustments for unrealized loss on derivatives at September 30, 2018 was $1.6 million . |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies Recent Accounting Guidance (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Recently Adopted Accounting Guidance In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Leases", which, together with amendments comprising ASC 842, requires lessees to identify arrangements that should be accounted for as leases and generally recognized, for operating and finance leases with terms exceeding twelve months, a right-of-use (or "ROU") asset and lease liability 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. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either the adoption date or the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We elected to adopt the new standard on January 1, 2019 and use the adoption date as our date of initial application. As a result, historical financial information will not be updated, and the disclosures required under the new standard will not be provided as of and for periods before January 1, 2019. See Note 7 for further information on the implementation of the standard. The new standard provides a number of optional practical expedients in transition. We have elected the package of practical expedients, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We have also elected the practical expedient pertaining to land easements which permits entities to forgo the evaluation of existing land easement arrangements in transition to determine if they contain a lease. We did not elect the use-of-hindsight practical expedient. The new standard also provides practical expedients for an entity’s ongoing accounting. We have elected the short term lease exception and we will not recognize ROU assets or lease liabilities for qualifying leases (leases with a term of less than 12 months from lease commencement). We also elected the accounting policy election to not separate lease and non-lease components for all asset classes. The Company implemented an outsourced software solution to support the ongoing accounting requirements that this standard will have on our consolidated financial statements. We have evaluated the completeness and accuracy of lease data entered into the software solution and updated our processes, policies and internal controls. Changes to our internal controls covered the identification, accounting and disclosure of leases both upon adoption and subsequent to adoption. Adoption of ASU 2016-02 at January 1, 2019 resulted in a one-time loss to retained earnings of $0.7 million on our condensed consolidated balance sheets and condensed consolidated statement of changes in shareholders’ equity related to the net difference of derecognition of existing assets and debt obligations associated with our leases historically accounted for as sale-leaseback financings, for which the ASU requires accounting for as a lease at the date of initial application. Of the accounting standards we have adopted in 2019, the below standard did not have a material impact: ASU Effective Date 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Recent Accounting Guidance (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | This revision has no impact on the consolidated or condensed consolidated statements of operations or balance sheets. Nine Months Ended September 30, 2018 As Reported Revised Cash used for investing activities $ (204.5 ) $ (177.6 ) Cash used for financing activities $ (212.5 ) $ (239.4 ) |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2018 to September 30, 2019 by reportable segment: Performance Coatings Transportation Coatings Total Balance at December 31, 2018 $ 1,151.5 $ 79.3 $ 1,230.8 Purchase accounting adjustments 1.0 — 1.0 Divestiture (5.6 ) — (5.6 ) Foreign currency translation (39.7 ) (2.8 ) (42.5 ) Balance at September 30, 2019 $ 1,107.2 $ 76.5 $ 1,183.7 |
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: September 30, 2019 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted Average Amortization Periods (years) Technology $ 533.0 $ (292.9 ) $ 240.1 10.4 Trademarks - indefinite-lived 260.3 — 260.3 Indefinite Trademarks - definite-lived 98.0 (28.1 ) 69.9 15.8 Customer relationships 912.9 (255.2 ) 657.7 19.1 Other 15.3 (7.3 ) 8.0 5.0 Total $ 1,819.5 $ (583.5 ) $ 1,236.0 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Book Value Weighted Average Amortization Periods (years) Technology $ 545.7 $ (260.7 ) $ 285.0 10.4 Trademarks—indefinite-lived 269.0 — 269.0 Indefinite Trademarks—definite-lived 100.6 (24.0 ) 76.6 15.8 Customer relationships 929.9 (222.9 ) 707.0 19.1 Other 15.7 (5.3 ) 10.4 5.1 Total $ 1,860.9 $ (512.9 ) $ 1,348.0 |
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 2019 and each of the succeeding five years is: Remainder of 2019 $ 29.8 2020 111.6 2021 111.0 2022 108.8 2023 70.2 2024 65.4 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 to September 30, 2019 : 2019 Activity Balance at December 31, 2018 $ 102.7 Expenses, net of changes to estimates 33.3 Payments made (34.5 ) Foreign currency translation (4.0 ) Balance at September 30, 2019 $ 97.5 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to leases is summarized as follows: September 30, 2019 Assets Classification Operating lease assets, net Other assets (1) $ 96.3 Finance lease assets, net Property, plant and equipment, net (2) 67.1 Total leased assets $ 163.4 Liabilities Current Operating lease liabilities Other accrued liabilities $ 28.5 Finance lease liabilities Current portion of borrowings 2.9 Noncurrent Operating lease liabilities Other liabilities 70.9 Finance lease liabilities Long-term borrowings 62.1 Total lease liabilities $ 164.4 (1) Operating lease assets are recorded net of accumulated amortization of $13.8 million as of September 30, 2019 . (2) Finance lease assets are recorded net of accumulated amortization of $3.4 million as of September 30, 2019 . |
Lease, Cost | Components of lease expense are summarized as follows: Three Months Ended Nine Months Ended Finance lease cost Amortization of right-of-use assets $ 1.1 $ 3.1 Interest on lease liabilities 0.9 2.6 Operating lease cost 9.3 27.3 Variable lease cost 0.6 2.5 Short-term lease cost 0.4 0.8 Net lease cost $ 12.3 $ 36.3 Supplemental cash flow information related to leases is summarized as follows: Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 27.5 Operating cash flows from finance leases $ 2.6 Financing cash flows from finance leases $ 2.1 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 17.9 Finance leases $ — |
Schedule of Lease Terms | Lease term and discount rate information is summarized as follows: September 30, 2019 Weighted-average remaining lease term (years) Operating leases 5.1 Finance leases 17.0 Weighted-average discount rate Operating leases 3.9 % Finance leases 5.2 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 is as follows: Operating Leases Finance Leases Year Remainder of 2019 $ 7.2 $ 0.7 2020 30.9 5.4 2021 24.0 5.5 2022 16.9 5.6 2023 12.0 5.7 Thereafter 22.6 78.4 Total lease payments $ 113.6 $ 101.3 Less: imputed interest 14.2 36.3 Present value of lease liabilities $ 99.4 $ 65.0 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 is as follows: Operating Leases Finance Leases Year Remainder of 2019 $ 7.2 $ 0.7 2020 30.9 5.4 2021 24.0 5.5 2022 16.9 5.6 2023 12.0 5.7 Thereafter 22.6 78.4 Total lease payments $ 113.6 $ 101.3 Less: imputed interest 14.2 36.3 Present value of lease liabilities $ 99.4 $ 65.0 |
Sale Leaseback Transactions | For comparability purposes, the following table reflects the total remaining cash payments related to all transactions during the rental term at December 31, 2018 associated with three lease arrangements that were treated as sale-leaseback financing transactions under ASC 840 and disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018: Sale-leaseback Obligations 2019 $ 5.3 2020 5.4 2021 5.4 2022 5.7 2023 5.7 Thereafter 77.1 Total minimum payments $ 104.6 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2018, future minimum payments under non-cancelable operating leases under ASC 840 were as follows: Operating Leases 2019 $ 34.6 2020 23.5 2021 17.1 2022 13.2 2023 11.5 Thereafter 16.6 Total minimum payments $ 116.5 |
Long-term Employee Benefits (Ta
Long-term Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic benefit cost for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 1.8 $ 2.2 $ 5.4 $ 6.7 Interest cost 3.2 3.2 9.8 10.0 Expected return on plan assets (3.4 ) (3.9 ) (10.4 ) (12.2 ) Amortization of actuarial loss, net 0.5 0.3 1.4 0.9 Amortization of prior service cost, net — — — (0.1 ) Net periodic benefit cost $ 2.1 $ 1.8 $ 6.2 $ 5.3 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Roll Forward | A summary of award activity by type for the nine months ended September 30, 2019 is presented below. Stock Options Awards (in millions) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (years) Outstanding at January 1, 2019 7.2 $ 19.32 Granted 0.8 26.91 Exercised (3.6 ) 12.63 Forfeited (0.8 ) 28.94 Outstanding at September 30, 2019 3.6 $ 25.77 Vested and expected to vest at September 30, 2019 3.6 $ 25.77 $ 17.6 6.12 Exercisable at September 30, 2019 2.5 $ 24.84 $ 15.3 5.02 |
Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward | Restricted Stock Awards and Restricted Stock Units Awards/Units (millions) Weighted-Average Fair Value Outstanding at January 1, 2019 1.6 $ 29.12 Granted 0.7 26.98 Vested (0.7 ) 28.53 Forfeited (0.4 ) 28.56 Outstanding at September 30, 2019 1.2 $ 28.38 |
Schedule of Performance Stock Roll Forward | Performance Stock Awards and Performance Share Units Awards/Units (millions) Weighted-Average Fair Value Outstanding at January 1, 2019 0.8 $ 31.82 Granted 0.3 29.10 Vested — — Forfeited (0.6 ) 30.38 Outstanding at September 30, 2019 0.5 $ 32.11 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Foreign exchange losses, net $ 0.7 $ 7.0 $ 5.3 $ 8.7 Debt extinguishment and refinancing related costs — — 0.2 8.4 Other miscellaneous income, net (2.6 ) (1.5 ) (9.3 ) (5.7 ) Total $ (1.9 ) $ 5.5 $ (3.8 ) $ 11.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rates for the nine months ended September 30, 2019 and 2018 are as follows: Nine Months Ended September 30, 2019 2018 Effective Tax Rate 19.3 % 26.0 % |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of our basic and diluted earnings per common share is as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2019 2018 2019 2018 Net income (loss) to common shareholders $ 65.5 $ (13.1 ) $ 207.3 $ 131.7 Basic weighted average shares outstanding 233.9 238.7 233.8 239.9 Diluted weighted average shares outstanding 235.5 238.7 235.8 244.2 Earnings (loss) per common share: Basic earnings (loss) per share $ 0.28 $ (0.05 ) $ 0.89 $ 0.55 Diluted earnings (loss) per share $ 0.28 $ (0.05 ) $ 0.88 $ 0.54 |
Accounts and Notes Receivable_2
Accounts and Notes Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | September 30, 2019 December 31, 2018 Accounts receivable - trade, net (1) $ 833.5 $ 739.9 Notes receivable 16.8 36.1 Other 85.4 84.8 Total $ 935.7 $ 860.8 (1) Allowance for doubtful accounts was $13.8 million and $15.4 million at September 30, 2019 and December 31, 2018 , respectively. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | September 30, 2019 December 31, 2018 Finished products $ 328.1 $ 334.0 Semi-finished products 107.6 108.0 Raw materials 140.6 149.9 Stores and supplies 21.0 21.1 Total $ 597.3 $ 613.0 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | September 30, 2019 December 31, 2018 Property, plant and equipment $ 2,200.4 $ 2,218.8 Accumulated depreciation (983.7 ) (920.6 ) Property, plant, and equipment, net $ 1,216.7 $ 1,298.2 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Instrument [Line Items] | |
Schedule of Debt | Borrowings are summarized as follows: September 30, 2019 December 31, 2018 2024 Dollar Term Loans $ 2,393.5 $ 2,411.8 2024 Dollar Senior Notes 500.0 500.0 2024 Euro Senior Notes 365.9 383.3 2025 Euro Senior Notes 491.5 514.9 Short-term and other borrowings 107.5 103.8 Unamortized original issue discount (11.0 ) (12.6 ) Unamortized deferred financing costs (32.7 ) (37.2 ) Total borrowings $ 3,814.7 $ 3,864.0 Less: Short-term borrowings $ 18.1 $ 17.9 Current portion of long-term borrowings 24.3 24.3 Long-term debt $ 3,772.3 $ 3,821.8 |
Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at September 30, 2019 . Remainder of 2019 $ 21.0 2020 26.6 2021 26.6 2022 54.1 2023 27.0 Thereafter 3,703.1 Total $ 3,858.4 |
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 2020 102.813 % 2021 101.875 % 2022 100.938 % 2023 and thereafter 100.000 % |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at September 30, 2019 and December 31, 2018 . September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Prepaid expenses and other current assets: Interest rate caps (1) $ — $ — $ — $ — $ — $ 4.5 $ — $ 4.5 Cross-currency swaps (2) — 14.6 — 14.6 — 14.1 — 14.1 Other assets: Interest rate caps (1) — — — — — 1.4 — 1.4 Cross-currency swaps (2) — 18.8 — 18.8 — — — — Investments in equity securities 0.6 — — 0.6 0.7 — — 0.7 Liabilities: Other accrued liabilities: Interest rate caps (1) — 1.0 — 1.0 — — — — Interest rate swaps (1) — 7.6 — 7.6 — — — — Other liabilities: Interest rate caps (1) — 1.6 — 1.6 — — — — Interest rate swaps (1) — 27.3 — 27.3 — 2.9 — 2.9 Cross-currency swaps (2) — — — — — 8.8 — 8.8 Long-term borrowings: 2024 Dollar Senior Notes — 520.3 — 520.3 — 474.9 — 474.9 2024 Euro Senior Notes — 378.1 — 378.1 — 381.1 — 381.1 2025 Euro Senior Notes — 509.1 — 509.1 — 497.5 — 497.5 2024 Dollar Term Loans — 2,396.5 — 2,396.5 — 2,276.1 — 2,276.1 (1) Cash flow hedge (2) Net investment hedge |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the gains (losses) included in AOCI for derivative instruments that qualify and have been designated as cash flow and net investment hedges: September 30, 2019 December 31, 2018 AOCI: Interest rate caps (cash flow hedges) $ 4.3 $ (3.4 ) Interest rate swaps (cash flow hedges) 34.9 3.0 Cross-currency swaps (net investment hedges) (33.3 ) (27.7 ) Total AOCI $ 5.9 $ (28.1 ) |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2019 and 2018 for these cash flow and net investment hedges. For the Three Months Ended September 30, 2019 2018 Derivatives in Cash Flow and Net Investment Hedges Location of (Gain) Loss Recognized in Income on Derivatives Net Amount of (Gain) Loss Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Net Amount of (Gain) Loss Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Interest rate caps Interest expense, net $ 0.3 $ 0.1 $ (1.1 ) $ (0.7 ) Interest rate swaps Interest expense, net 4.8 0.4 (2.5 ) 0.5 Cross-currency swaps Interest expense, net (24.2 ) (3.8 ) 5.5 (3.2 ) For the Nine Months Ended September 30, 2019 2018 Derivatives in Cash Flow and Net Investment Hedges Location of (Gain) Loss Recognized in Income on Derivatives Net Amount of (Gain) Loss Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Net Amount of (Gain) Loss Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Interest rate caps Interest expense, net $ 6.2 $ (1.5 ) $ (11.5 ) $ (1.4 ) Interest rate swaps Interest expense, net 32.4 0.5 (5.0 ) 0.9 Cross-currency swaps Interest expense, net (39.1 ) (11.0 ) (18.4 ) (5.9 ) |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows: Derivatives Not Designated as Hedging Instruments under ASC 815 Location of (Gain) Loss Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Foreign currency forward contracts Other (income) expense, net $ 2.3 $ (3.0 ) $ 4.1 $ (7.6 ) |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents relevant information of our reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales (1) : Refinish $ 441.5 $ 441.3 $ 1,294.3 $ 1,303.9 Industrial 282.2 314.9 899.4 969.3 Total Net sales Performance Coatings 723.7 756.2 2,193.7 2,273.2 Light Vehicle 295.7 303.7 917.7 990.2 Commercial Vehicle 87.6 86.1 272.4 266.8 Total Net sales Transportation Coatings 383.3 389.8 1,190.1 1,257.0 Total Net sales $ 1,107.0 $ 1,146.0 $ 3,383.8 $ 3,530.2 Equity in earnings in unconsolidated affiliates: Performance Coatings $ 0.2 $ 0.2 $ 0.4 $ 0.3 Transportation Coatings (0.1 ) — (0.1 ) 0.3 Total $ 0.1 $ 0.2 $ 0.3 $ 0.6 September 30, 2019 December 31, 2018 Investment in unconsolidated affiliates: Performance Coatings $ 2.3 $ 2.7 Transportation Coatings 12.5 12.7 Total $ 14.8 $ 15.4 (1) The Company has no intercompany sales between segments. (2) Net sales by segment for the three and nine months ended September 30, 2018 were recast to include amounts previously classified as other revenue. See Note 1 for further information on the reclassification. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles our segment operating performance to income before income taxes for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Segment Adjusted EBIT (1) : Performance Coatings $ 124.9 $ 104.1 $ 331.1 $ 289.0 Transportation Coatings 37.2 25.6 111.8 108.9 Total (2) 162.1 129.7 442.9 397.9 Interest expense, net 40.2 39.8 122.5 118.5 Debt extinguishment and refinancing related costs (a) — — 0.2 8.4 Termination benefits and other employee related costs (b) 29.2 82.4 33.3 80.2 Consulting and advisory (c) 3.0 — 3.8 — Offering and transactional costs (d) 0.1 0.8 0.9 0.9 (Gain) loss on divestiture (e) (0.5 ) — 3.4 — Accelerated depreciation (f) 5.4 4.2 18.2 4.2 Indemnity (income) losses (g) — — (0.2 ) 0.9 Change in fair value of equity investments (h) — — — 0.4 Income before income taxes $ 84.7 $ 2.5 $ 260.8 $ 184.4 (1) The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBIT is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents Adjusted EBIT adjusted for the select items referred to above. (2) Does not represent Axalta’s Adjusted EBIT referenced elsewhere by the Company. (a) Represents expenses associated with the restructuring and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. (b) Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance. (c) Represents legal and advisory fees pertaining to our previously announced comprehensive review of strategic alternatives. These amounts are not considered indicative of our ongoing performance. (d) Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance. (e) Represents the impacts recognized on the sale of our interest in a joint venture business, which is not considered indicative of our ongoing operating performance. (f) Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance. (g) Represents indemnity (income) losses associated with the acquisition by Axalta of the DuPont Performance Coatings business, which we do not consider indicative of our ongoing operating performance. (h) Represents mark to market impacts of our equity investments, which we do not consider to be indicative of our ongoing operating performance. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Unrealized Currency Translation Adjustments Pension Adjustments Unrealized Unrealized Gain (Loss) on Derivatives Accumulated Balance at December 31, 2017 $ (208.8 ) $ (31.4 ) $ 0.8 $ (1.6 ) $ (241.0 ) Cumulative effect of an accounting change — — (0.8 ) — (0.8 ) Balance at January 1, 2018 (208.8 ) (31.4 ) — (1.6 ) (241.8 ) Current year deferrals to AOCI 42.2 — — 6.4 48.6 Reclassifications from AOCI to Net income (loss) — 0.6 — (0.1 ) 0.5 Net Change 42.2 0.6 — 6.3 49.1 Balance at March 31, 2018 (166.6 ) (30.8 ) — 4.7 (192.7 ) Current year deferrals to AOCI (109.6 ) (1.5 ) — 4.5 (106.6 ) Reclassifications from AOCI to Net income (loss) — (0.1 ) — (0.2 ) (0.3 ) Net Change (109.6 ) (1.6 ) — 4.3 (106.9 ) Balance at June 30, 2018 (276.2 ) (32.4 ) — 9.0 (299.6 ) Current year deferrals to AOCI (16.4 ) — — 3.5 (12.9 ) Reclassifications from AOCI to Net income (loss) — 0.2 — (0.1 ) 0.1 Net Change (16.4 ) 0.2 — 3.4 (12.8 ) Balance at September 30, 2018 $ (292.6 ) $ (32.2 ) $ — $ 12.4 $ (312.4 ) Unrealized Currency Translation Adjustments Pension Adjustments Unrealized Gain (Loss) on Derivatives Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2018 $ (299.4 ) $ (36.4 ) $ (0.3 ) $ (336.1 ) Current year deferrals to AOCI 12.8 — (11.4 ) 1.4 Reclassifications from AOCI to Net income (loss) — — (1.0 ) (1.0 ) Net Change 12.8 — (12.4 ) 0.4 Balance at March 31, 2019 (286.6 ) (36.4 ) (12.7 ) (335.7 ) Current year deferrals to AOCI (5.7 ) (0.1 ) (17.3 ) (23.1 ) Reclassifications from AOCI to Net income (loss) 2.6 0.5 (0.3 ) 2.8 Net Change (3.1 ) 0.4 (17.6 ) (20.3 ) Balance at June 30, 2019 (289.7 ) (36.0 ) $ (30.3 ) (356.0 ) Current year deferrals to AOCI (52.2 ) — (4.4 ) (56.6 ) Reclassifications from AOCI to Net income (loss) — 0.3 0.5 0.8 Net Change (52.2 ) 0.3 (3.9 ) (55.8 ) Balance at September 30, 2019 $ (341.9 ) $ (35.7 ) $ (34.2 ) $ (411.8 ) |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Apr. 01, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Payments to Noncontrolling Interests | $ 31.1 | $ 26.9 | |||
Cumulative effect of an accounting change | $ (3.7) | $ (0.7) | $ 12.2 | ||
Retained Earnings (Accumulated deficit) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of an accounting change | $ (3.7) | $ (0.7) | $ 12.9 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Correction of Immaterial Errors (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Cash Provided by (Used in) Investing Activities | $ (59) | $ (177.6) |
Net Cash Provided by (Used in) Financing Activities | $ (145) | (239.4) |
Previously Reported [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Cash Provided by (Used in) Investing Activities | (204.5) | |
Net Cash Provided by (Used in) Financing Activities | $ (212.5) |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract with customer, asset | $ 39.1 | $ 39.1 | $ 47.2 | ||
Capitalized contract cost, net | 188.1 | 188.1 | 190.8 | ||
Capitalized contract cost, amortization | 17.7 | $ 16.8 | 50.8 | $ 49.9 | |
Upfront Incentive Payments | $ 85.5 | $ 85.5 | $ 56 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Gain) loss on divestiture | $ (0.5) | $ 0 | $ 3.4 | $ 0 |
Ownership percentage by parent | 100.00% | 100.00% | ||
Payments to Noncontrolling Interests | $ 31.1 | $ 26.9 | ||
Percentage of voting interests acquired | 24.50% | 24.50% | ||
Asia Pacific [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Percent of joint venture sold | 60.00% | 60.00% | ||
Percentage of voting interests acquired | 40.00% | 40.00% |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,230.8 |
Purchase Accounting Adjustments | 1 |
Divestiture | 5.6 |
Foreign currency translation | (42.5) |
Goodwill, ending balance | 1,183.7 |
Performance Coatings [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,151.5 |
Purchase Accounting Adjustments | 1 |
Divestiture | 5.6 |
Foreign currency translation | (39.7) |
Goodwill, ending balance | 1,107.2 |
Transportation Coatings [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 79.3 |
Purchase Accounting Adjustments | 0 |
Divestiture | 0 |
Foreign currency translation | (2.8) |
Goodwill, ending balance | $ 76.5 |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 1,819.5 | $ 1,860.9 |
Accumulated Amortization | (583.5) | (512.9) |
Net Book Value, definite-lived | 1,236 | 1,348 |
Trademarks [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Net Book Value, indefinite-lived | 260.3 | 269 |
Technology-Based Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 533 | 545.7 |
Accumulated Amortization | (292.9) | (260.7) |
Net Book Value, definite-lived | $ 240.1 | $ 285 |
Weighted Average Amortization Periods (years) | 10 years 4 months 24 days | 10 years 4 months 24 days |
Trademarks [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 98 | $ 100.6 |
Accumulated Amortization | (28.1) | (24) |
Net Book Value, definite-lived | $ 69.9 | $ 76.6 |
Weighted Average Amortization Periods (years) | 15 years 9 months 18 days | 15 years 9 months 18 days |
Customer Relationships [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 912.9 | $ 929.9 |
Accumulated Amortization | (255.2) | (222.9) |
Net Book Value, definite-lived | $ 657.7 | $ 707 |
Weighted Average Amortization Periods (years) | 19 years 1 month 6 days | 19 years 1 month 6 days |
Other Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 15.3 | $ 15.7 |
Accumulated Amortization | (7.3) | (5.3) |
Net Book Value, definite-lived | $ 8 | $ 10.4 |
Weighted Average Amortization Periods (years) | 5 years | 5 years 1 month 6 days |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions | Sep. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2019 | $ 29.8 |
2020 | 111.6 |
2021 | 111 |
2022 | 108.8 |
2023 | 70.2 |
2024 | $ 65.4 |
Restructuring - Additional Inf
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 29.2 | $ 81.4 | $ 33.3 | $ 79.9 |
Accelerated depreciation | $ 5.4 | $ 4.2 | $ 18.2 | $ 4.2 |
Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payment term (in months) | 12 months | |||
Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payment term (in months) | 24 months |
Restructuring - Restructuring
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 102.7 | |||
Restructuring Charges | $ 29.2 | $ 81.4 | 33.3 | $ 79.9 |
Payments made | (34.5) | |||
Foreign currency translation | (4) | |||
Ending balance | $ 97.5 | $ 97.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum exposure | $ 11,600,000 | $ 12,700,000 |
Current carrying value | $ 0 | $ 0 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets, net | $ 96.3 |
Finance lease assets, net | 67.1 |
Total leased assets | 163.4 |
Operating lease liabilities, Current | 28.5 |
Finance lease liabilities, Current | 2.9 |
Operating lease liabilities, Noncurrent | 70.9 |
Finance lease liabilities, Noncurrent | 62.1 |
Total lease liabilities | 164.4 |
Operating lease, accumulated amortization | (13.8) |
Finance lease, accumulated amortization | $ (3.4) |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 1.1 | $ 3.1 |
Interest on lease liabilities | 0.9 | 2.6 |
Operating lease cost | 9.3 | 27.3 |
Variable lease cost | 0.6 | 2.5 |
Short-term lease cost | 0.4 | 0.8 |
Net lease cost | $ 12.3 | $ 36.3 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 27.5 |
Operating cash flows from finance leases | 2.6 |
Financing cash flows from finance leases | 2.1 |
Operating leases, Right-of-use assets obtained in exchange for lease obligations | 17.9 |
Finance leases, Right-of-use assets obtained in exchange for lease obligations | $ 0 |
Leases - Lease Information (Det
Leases - Lease Information (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, Operating leases | 5 years 30 days |
Weighted-average remaining lease term, Finance leases | 17 years |
Weighted-average discount rate, Operating leases | 3.90% |
Weighted-average discount rate, Finance leases | 5.20% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 7.2 |
2020 | 30.9 |
2021 | 24 |
2022 | 16.9 |
2023 | 12 |
Thereafter | 22.6 |
Total lease payments | 113.6 |
Less: imputed interest | 14.2 |
Present value of lease liabilities | 99.4 |
Finance Leases | |
Remainder of 2019 | 0.7 |
2020 | 5.4 |
2021 | 5.5 |
2022 | 5.6 |
2023 | 5.7 |
Thereafter | 78.4 |
Total lease payments | 101.3 |
Less: imputed interest | 36.3 |
Present value of lease liabilities | $ 65 |
Leases - Sale-leaseback Obligat
Leases - Sale-leaseback Obligations (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 5.3 |
2020 | 5.4 |
2021 | 5.4 |
2022 | 5.7 |
2023 | 5.7 |
Thereafter | 77.1 |
Total minimum payments | $ 104.6 |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity ASC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 34.6 |
2020 | 23.5 |
2021 | 17.1 |
2022 | 13.2 |
2023 | 11.5 |
Thereafter | 16.6 |
Total minimum payments | $ 116.5 |
Long-term Employee Benefits -
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net periodic benefit cost: | ||||
Service cost | $ 1.8 | $ 2.2 | $ 5.4 | $ 6.7 |
Interest cost | 3.2 | 3.2 | 9.8 | 10 |
Expected return on plan assets | (3.4) | (3.9) | (10.4) | (12.2) |
Amortization of actuarial loss, net | 0.5 | 0.3 | 1.4 | 0.9 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | (0.1) |
Net periodic benefit (gain) cost | $ 2.1 | $ 1.8 | $ 6.2 | $ 5.3 |
Stock-based Compensation - Add
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 4.2 | $ 9.4 | $ 9.5 | $ 27.5 |
Tax benefit from compensation expense | 0.4 | $ 1.8 | 1.5 | 5.2 |
Proceeds from stock options exercised | 46 | $ 17.2 | ||
Tax benefit realized from exercise of stock options | 11.3 | |||
Unrecognized compensation cost | 3.9 | 3.9 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from stock options exercised | $ 46 | |||
Period for recognition of compensation not yet recognized | 1 year 6 months | |||
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 | 1 year 6 months | |||
Tax benefit realized on the vesting of restricted stock | $ 0.3 | |||
Compensation not yet recognized, share-based awards other than options | 16.4 | $ 16.4 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition of compensation not yet recognized | 2 years 1 month 6 days | |||
Compensation not yet recognized, share-based awards other than options | $ 8.2 | $ 8.2 |
Stock-based Compensation - Sch
Stock-based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2019 | |
Awards (in millions) | |
Beginning Balance | 7.2 |
Granted (in shares) | 0.8 |
Exercised (in shares) | (3.6) |
Forfeited (in shares) | (0.8) |
Ending Balance | 3.6 |
Weighted Average Exercise Price (usd per share) | |
Beginning Balance | $ 19.32 |
Granted (usd per share) | 26.91 |
Exercised (usd per share) | 12.63 |
Forfeited (usd per share) | 28.94 |
Ending Balance | $ 25.77 |
Vested and Expected to Vest | |
Vested and expected to vest, in shares | 3.6 |
Vested and expected to vest, weighted average exercise price (usd) | $ 25.77 |
Vested and expected to vest, aggregate intrinsic value | $ 17.6 |
Vested and expected to vest, weighted average contractual life (in years) | 6 years 1 month 13 days |
Exercisable | |
Exercisable, in shares | 2.5 |
Exercisable, usd per share | $ 24.84 |
Exercisable, aggregate intrinsic value | $ 15.3 |
Exercisable, weighted average contractual life (in years) | 5 years 7 days |
Stock-based Compensation - S_2
Stock-based Compensation - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock and Restricted Stock Units [Member] shares in Millions | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Awards (in millions) | |
Beginning Balance | shares | 1.6 |
Granted (in shares) | shares | 0.7 |
Vested (in shares) | shares | (0.7) |
Forfeited (in shares) | shares | (0.4) |
Ending Balance | shares | 1.2 |
Weighted Average Exercise Price (usd per share) | |
Beginning Balance (usd per share) | $ / shares | $ 29.12 |
Granted (usd per share) | $ / shares | 26.98 |
Vested (usd per share) | $ / shares | 28.53 |
Forfeited (usd per share) | $ / shares | 28.56 |
Ending Balance (usd per share) | $ / shares | $ 28.38 |
Stock-based Compensation - S_3
Stock-based Compensation - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares [Member] shares in Millions | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Awards (in millions) | |
Beginning Balance | shares | 0.8 |
Granted (in shares) | shares | 0.3 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (0.6) |
Ending Balance | shares | 0.5 |
Weighted Average Exercise Price (usd per share) | |
Beginning Balance (usd per share) | $ / shares | $ 31.82 |
Granted (usd per share) | $ / shares | 29.10 |
Vested (usd per share) | $ / shares | 0 |
Forfeited (usd per share) | $ / shares | 30.38 |
Ending Balance (usd per share) | $ / shares | $ 32.11 |
Other (Income) Expense, Net -
Other (Income) Expense, Net - Schedule of Other Non-operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange losses, net | $ 0.7 | $ 7 | $ 5.3 | $ 8.7 |
Debt extinguishment and refinancing related costs | 0 | 0 | 0.2 | 8.4 |
Other miscellaneous income, net | (2.6) | (1.5) | (9.3) | (5.7) |
Total | $ (1.9) | $ 5.5 | $ (3.8) | $ 11.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 19.30% | 26.00% |
Tax benefit on share-based compensation | $ 11 | $ 6.5 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) to common shareholders | $ 65.5 | $ (13.1) | $ 207.3 | $ 131.7 |
Basic weighted average shares outstanding | 233.9 | 238.7 | 233.8 | 239.9 |
Diluted weighted average shares outstanding | 235.5 | 238.7 | 235.8 | 244.2 |
Earnings per common share: | ||||
Basic earnings per share | $ 0.28 | $ (0.05) | $ 0.89 | $ 0.55 |
Diluted earnings per share | $ 0.28 | $ (0.05) | $ 0.88 | $ 0.54 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.4 | 8.8 | 2.8 | 2.6 |
Accounts and Notes Receivable_3
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||||
Accounts receivable - trade, net (1) | $ 833.5 | $ 833.5 | $ 739.9 | ||
Notes receivable | 16.8 | 16.8 | 36.1 | ||
Other | 85.4 | 85.4 | 84.8 | ||
Total | 935.7 | 935.7 | 860.8 | ||
Allowance for Doubtful Accounts Receivable, Current | 13.8 | 13.8 | $ 15.4 | ||
Bad Debt Expense Net Of Recoveries | $ 1.1 | $ 0.6 | $ 3.7 | $ 1.5 |
Accounts and Notes Receivable_4
Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Receivables [Abstract] | ||||
Bad Debt Expense Net Of Recoveries | $ 1.1 | $ 0.6 | $ 3.7 | $ 1.5 |
Inventories - Schedule of Inve
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 328.1 | $ 334 |
Semi-finished products | 107.6 | 108 |
Raw materials | 140.6 | 149.9 |
Stores and supplies | 21 | 21.1 |
Inventories | $ 597.3 | $ 613 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 40.2 | $ 45.5 | $ 129.3 | $ 134.7 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 2,200.4 | $ 2,218.8 |
Accumulated depreciation | (983.7) | (920.6) |
Property, plant, and equipment, net | $ 1,216.7 | $ 1,298.2 |
Borrowings - Schedule of Debt
Borrowings - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Apr. 11, 2018 | Jun. 01, 2017 | Aug. 16, 2016 |
Debt Instrument [Line Items] | |||||
Short-term and other borrowings | $ 107.5 | $ 103.8 | |||
Unamortized original issue discount | (11) | (12.6) | |||
Unamortized deferred financing costs | (32.7) | (37.2) | |||
Debt and Capital Lease Obligations | 3,814.7 | 3,864 | |||
Short-term borrowings | 18.1 | 17.9 | |||
Current portion of long-term borrowings | 24.3 | 24.3 | |||
Long-term debt | 3,772.3 | 3,821.8 | |||
2024 Dollar Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Term loan | 2,393.5 | 2,411.8 | |||
Unamortized original issue discount | $ (6) | $ (2.5) | |||
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 | 365.9 | 383.3 | |||
2025 Euro Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 491.5 | $ 514.9 |
Borrowings - Senior Secured Cr
Borrowings - Senior Secured Credit Facilities (Details) € in Millions | Jun. 28, 2019 | Apr. 11, 2018USD ($) | Jun. 01, 2017USD ($) | Aug. 01, 2016 | Feb. 03, 2014USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Apr. 10, 2018USD ($) | Dec. 15, 2016USD ($) | Dec. 15, 2016EUR (€) |
Debt Instrument [Line Items] | |||||||||||
Unamortized original issue discount | $ 11,000,000 | $ 12,600,000 | |||||||||
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 | ||||||||||
First lien leverage ratio lower limit | 3.50 | ||||||||||
Line of credit facility, maximum borrowing capacity | 700,000,000 | ||||||||||
Debt issuance costs incurred | 1,800,000 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum amount outstanding during period | 0 | ||||||||||
Letters of credit outstanding, amount | 37,500,000 | 44,800,000 | |||||||||
Line of credit facility, remaining borrowing capacity | $ 362,500,000 | $ 355,200,000 | |||||||||
Dollar Term Loan Due 2020 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt, long-term and short-term, combined amount | $ 1,775,300,000 | ||||||||||
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 | |||||||||
Euro Term Loan Due 2020 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt, long-term and short-term, combined amount | € | € 199 | ||||||||||
2023 Euro Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt, long-term and short-term, combined amount | € | € 400 | ||||||||||
Loss on restructuring of debt | $ 2,900,000 | ||||||||||
2024 Dollar Term Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt, long-term and short-term, combined amount | $ 2,430,000,000 | $ 2,000,000,000 | $ 475,000,000 | ||||||||
Discount, percent of par | 99.75% | 99.875% | |||||||||
Unamortized original issue discount | $ 6,000,000 | $ 2,500,000 | |||||||||
Debt instrument periodic payment principal percentage | 1.00% | ||||||||||
Loss on restructuring of debt | 5,500,000 | ||||||||||
2024 Dollar Term Loans [Member] | Interest Rate Floor [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 0.00% | ||||||||||
2024 Dollar Term Loans [Member] | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 1.00% | 0.75% | |||||||||
2024 Dollar Term Loans [Member] | Eurocurrency Rate Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 2.00% | 1.75% | |||||||||
2024 Dollar Term Loans [Member] | Eurocurrency Rate Loans [Member] | Interest Rate Floor [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 0.00% | ||||||||||
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 2.75% | 3.50% | |||||||||
First lien leverage ratio upper limit | 3 | ||||||||||
First lien leverage ratio lower limit | 2.50 | ||||||||||
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member] | Leverage Ratio Between 1.25 and 2.25 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
First lien leverage ratio upper limit | 2.25 | ||||||||||
First lien leverage ratio lower limit | 1.25 | ||||||||||
Leverage ratio increase | 0.25% | ||||||||||
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member] | Leverage Ratio Greater Than 2.25 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Leverage ratio increase | 0.25% | ||||||||||
Senior Secured Credit Facilities [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||||
Senior Secured Credit Facilities [Member] | Eurodollar [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 1.50% | 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% | |||||||||
First lien leverage ratio upper limit | 3 | ||||||||||
First lien leverage ratio lower limit | 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] | Revolving Credit Facility [Member] | Leverage Ratio Greater Than 2.25 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
First lien leverage ratio upper limit | 2.25 | ||||||||||
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% | ||||||||||
2024 Dollar Term Loan and 2023 Euro Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loss on restructuring of debt | 8,400,000 | ||||||||||
Write off of deferred debt issuance cost | 3,100,000 | ||||||||||
Amortization of debt discount (premium) | 700,000 | ||||||||||
Debt instrument, fee amount | $ 4,600,000 |
Borrowings - Senior Notes (Det
Borrowings - Senior Notes (Details) € in Millions, $ in Millions | Aug. 16, 2016USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 27, 2016EUR (€) | Aug. 16, 2016EUR (€) |
Debt Instrument [Line Items] | |||||
Unamortized original issue discount | $ 11 | $ 12.6 | |||
2024 Dollar Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500 | ||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||
Discount, percent of par | 99.951% | 99.951% | |||
Unamortized original issue discount | $ 2 | ||||
Percentage if change in control occurs | 101.00% | ||||
2024 Euro Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € | € 335 | ||||
Debt instrument, interest rate, stated percentage | 4.25% | 4.25% | |||
Percentage if change in control occurs | 101.00% | ||||
2025 Euro Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € | € 450 | ||||
Debt instrument, interest rate, stated percentage | 3.75% | ||||
Percentage if change in control occurs | 101.00% | ||||
Debt Instrument, Redemption Price, Percentage | 103.75% | ||||
Percent of principal required to be outstanding | 50.00% | ||||
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) | 9 Months Ended |
Sep. 30, 2019 | |
2024 Dollar Senior Notes [Member] | 2019 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.656% |
2024 Dollar Senior Notes [Member] | 2020 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.438% |
2024 Dollar Senior Notes [Member] | 2021 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.219% |
2024 Dollar Senior Notes [Member] | 2022 and Thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
2024 Euro Senior Notes [Member] | 2019 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.188% |
2024 Euro Senior Notes [Member] | 2020 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.125% |
2024 Euro Senior Notes [Member] | 2021 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.063% |
2024 Euro Senior Notes [Member] | 2022 and Thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
2025 Euro Senior Notes [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.75% |
2025 Euro Senior Notes [Member] | 2020 Period One | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.813% |
2025 Euro Senior Notes [Member] | 2021 Period Two | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.875% |
2025 Euro Senior Notes [Member] | 2022 Period Three | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.938% |
2025 Euro Senior Notes [Member] | 2023 and Thereafter Period Four and Thereafter | |
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 | Sep. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2019 | $ 21 |
2020 | 26.6 |
2021 | 26.6 |
2022 | 54.1 |
2023 | 27 |
Thereafter | 3,703.1 |
Long-term debt | $ 3,858.4 |
Financial Instruments, Hedgin_3
Financial Instruments, Hedging Activities and Fair Value Measurements - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | $ 0.6 | $ 0.7 |
Long-term Debt [Member] | 2024 Dollar Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 520.3 | 474.9 |
Long-term Debt [Member] | 2024 Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 378.1 | 381.1 |
Long-term Debt [Member] | 2025 Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 509.1 | 497.5 |
Long-term Debt [Member] | 2024 Dollar Term Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 2,396.5 | 2,276.1 |
Interest Rate Cap [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 4.5 |
Interest Rate Cap [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 1.4 |
Interest Rate Cap [Member] | Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 1 | 0 |
Interest Rate Cap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 1.6 | 0 |
Currency Swap [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 14.6 | 14.1 |
Currency Swap [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 18.8 | 0 |
Currency Swap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 8.8 |
Interest Rate Swap [Member] | Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 7.6 | 0 |
Interest Rate Swap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 27.3 | 2.9 |
Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0.6 | 0.7 |
Fair Value, Inputs, Level 1 [Member] | Long-term Debt [Member] | 2024 Dollar Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Long-term Debt [Member] | 2024 Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Long-term Debt [Member] | 2025 Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Long-term Debt [Member] | 2024 Dollar Term Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Cap [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Cap [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Cap [Member] | Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Cap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Currency Swap [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Currency Swap [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Currency Swap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Long-term Debt [Member] | 2024 Dollar Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 520.3 | 474.9 |
Fair Value, Inputs, Level 2 [Member] | Long-term Debt [Member] | 2024 Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 378.1 | 381.1 |
Fair Value, Inputs, Level 2 [Member] | Long-term Debt [Member] | 2025 Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 509.1 | 497.5 |
Fair Value, Inputs, Level 2 [Member] | Long-term Debt [Member] | 2024 Dollar Term Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 2,396.5 | 2,276.1 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 4.5 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 1.4 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member] | Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 1 | 0 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 1.6 | 0 |
Fair Value, Inputs, Level 2 [Member] | Currency Swap [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 14.6 | 14.1 |
Fair Value, Inputs, Level 2 [Member] | Currency Swap [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 18.8 | 0 |
Fair Value, Inputs, Level 2 [Member] | Currency Swap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 8.8 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 7.6 | 0 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 27.3 | 2.9 |
Fair Value, Inputs, Level 3 [Member] | Other Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Long-term Debt [Member] | 2024 Dollar Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Long-term Debt [Member] | 2024 Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Long-term Debt [Member] | 2025 Euro Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Long-term Debt [Member] | 2024 Dollar Term Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Cap [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Cap [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Cap [Member] | Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Cap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Currency Swap [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Currency Swap [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Currency Swap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 0 | $ 0 |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements - Additional Information (Details) € in Millions | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Derivatives, Fair Value [Line Items] | ||||||||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 9,900,000 | |||||||
2023 Euro Term Loan [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, notional amount | € | € 388 | |||||||
2023 Euro Term Loan [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, cap interest rate | 1.25% | 1.25% | ||||||
Derivative instrument, premium paid | $ 600,000 | |||||||
Interest Rate Cap [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Number of interest rate caps | 4 | 4 | ||||||
Interest rate derivative assets, at fair value | $ 0 | |||||||
Interest Rate Cap [Member] | 2024 Dollar Term Loans [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, cap interest rate | 1.50% | 1.50% | ||||||
Derivative, notional amount | $ 850,000,000 | |||||||
Interest Rate Cap [Member] | 2024 Dollar Term Loans [Member] | December 31, 2019 [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, notional amount | 600,000,000 | |||||||
Derivative instrument, deferred premium | 8,600,000 | |||||||
Interest Rate Cap [Member] | 2024 Dollar Term Loans [Member] | December 31, 2021 [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, notional amount | 250,000,000 | |||||||
Derivative instrument, deferred premium | $ 8,100,000 | |||||||
Interest Rate Swap [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Number of interest rate caps | 2 | 3 | 3 | |||||
Derivative, notional amount | $ 500,000,000 | $ 475,000,000 | ||||||
Derivative, fixed interest rate | 2.59% | 2.72% | 2.72% | |||||
Currency Swap [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Number of interest rate caps | 3 | 3 | 3 | 3 | ||||
Derivative, notional amount | $ 475,000,000 | € 416.6 | $ 475,000,000 | € 387.2 | ||||
Derivative, fixed interest rate | 1.44% | 1.44% | 1.95% | 1.95% | ||||
Derivative, interest rate of hedged item | 4.47% | 4.47% | 4.47% | 4.47% | ||||
Derivative, cost of hedge net of cash received | $ 22,500,000 |
Financial Instruments, Hedgin_5
Financial Instruments, Hedging Activities and Fair Value Measurements - Accumulated Other Comprehensive (Loss) Income (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | $ 5.9 | $ (28.1) |
Cash Flow Hedging [Member] | Interest Rate Cap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 4.3 | (3.4) |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 34.9 | 3 |
Net Investment Hedging [Member] | Currency Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | $ (33.3) | $ (27.7) |
Financial Instruments, Hedgin_6
Financial Instruments, Hedging Activities and Fair Value Measurements - Derivative Locations and Amounts Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized (loss) gain on derivatives | $ (4.6) | $ 3.6 | $ (39.5) | $ 16.2 |
Interest Expense [Member] | Foreign Exchange Forward [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 2.3 | (3) | 4.1 | (7.6) |
Cash Flow Hedging [Member] | Interest Rate Cap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized (loss) gain on derivatives | 0.3 | (1.1) | 6.2 | (11.5) |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized (loss) gain on derivatives | 4.8 | (2.5) | 32.4 | (5) |
Cash Flow Hedging [Member] | Currency Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized (loss) gain on derivatives | (24.2) | 5.5 | (39.1) | (18.4) |
Cash Flow Hedging [Member] | Interest Expense [Member] | Interest Rate Cap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of (Gain) Loss Recognized in Income | 0.1 | (0.7) | (1.5) | (1.4) |
Cash Flow Hedging [Member] | Interest Expense [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of (Gain) Loss Recognized in Income | 0.4 | 0.5 | 0.5 | 0.9 |
Cash Flow Hedging [Member] | Interest Expense [Member] | Currency Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of (Gain) Loss Recognized in Income | $ (3.8) | $ (3.2) | $ (11) | $ (5.9) |
Segments - Additional Informat
Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,107,000,000 | $ 1,146,000,000 | $ 3,383,800,000 | $ 3,530,200,000 | |
Equity in earnings in unconsolidated affiliates | 100,000 | 200,000 | 300,000 | 600,000 | |
Investment in unconsolidated affiliates | 14,800,000 | 14,800,000 | $ 15,400,000 | ||
Segment Reporting, Measurement for Transactions Between Reportable Segments | 0 | ||||
Performance Coatings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 723,700,000 | 756,200,000 | 2,193,700,000 | 2,273,200,000 | |
Equity in earnings in unconsolidated affiliates | 200,000 | 200,000 | 400,000 | 300,000 | |
Investment in unconsolidated affiliates | 2,300,000 | 2,300,000 | 2,700,000 | ||
Transportation Coatings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 383,300,000 | 389,800,000 | 1,190,100,000 | 1,257,000,000 | |
Equity in earnings in unconsolidated affiliates | (100,000) | 0 | (100,000) | 300,000 | |
Investment in unconsolidated affiliates | 12,500,000 | 12,500,000 | $ 12,700,000 | ||
Refinish [Member] | Performance Coatings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 441,500,000 | 441,300,000 | 1,294,300,000 | 1,303,900,000 | |
Industrial [Member] | Performance Coatings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 282,200,000 | 314,900,000 | 899,400,000 | 969,300,000 | |
Light Vehicle [Member] | Transportation Coatings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 295,700,000 | 303,700,000 | 917,700,000 | 990,200,000 | |
Commercial Vehicle [Member] | Transportation Coatings [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 87,600,000 | $ 86,100,000 | $ 272,400,000 | $ 266,800,000 |
Segments - Reconciliation of O
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted EBIT | $ 162.1 | $ 129.7 | $ 442.9 | $ 397.9 |
Interest expense, net | 40.2 | 39.8 | 122.5 | 118.5 |
Debt extinguishment and refinancing related costs | 0 | 0 | 0.2 | 8.4 |
Termination benefits and other employee related costs | 29.2 | 82.4 | 33.3 | 80.2 |
Consulting and advisory | 3 | 0 | 3.8 | 0 |
Offering and transactional costs | 0.1 | 0.8 | 0.9 | 0.9 |
(Gain) loss on divestiture | (0.5) | 0 | 3.4 | 0 |
Accelerated depreciation | 5.4 | 4.2 | 18.2 | 4.2 |
Indemnity (income) losses | 0 | 0 | (0.2) | 0.9 |
Change in fair value of equity instruments | 0 | 0 | 0 | 0.4 |
Income before income taxes | 84.7 | 2.5 | 260.8 | 184.4 |
Performance Coatings [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted EBIT | 124.9 | 104.1 | 331.1 | 289 |
Transportation Coatings [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted EBIT | $ 37.2 | $ 25.6 | $ 111.8 | $ 108.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Apr. 01, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Accumulated other comprehensive loss | $ (411.8) | $ (336.1) | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Cumulative effect of an accounting change | $ (3.7) | $ (0.7) | $ 12.2 | ||||||||
Unrealized Currency Translation Adjustments | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Accumulated other comprehensive loss | (341.9) | $ (289.7) | $ (286.6) | $ (292.6) | $ (276.2) | $ (166.6) | (299.4) | (208.8) | $ (208.8) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Cumulative effect of an accounting change | 0 | ||||||||||
Current year deferrals to AOCI | (52.2) | (5.7) | 12.8 | (16.4) | (109.6) | 42.2 | |||||
Reclassifications from AOCI to Net income (loss) | 0 | 2.6 | 0 | 0 | 0 | 0 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (52.2) | (3.1) | 12.8 | (16.4) | (109.6) | 42.2 | |||||
Pension Adjustments | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Accumulated other comprehensive loss | (35.7) | (36) | (36.4) | (32.2) | (32.4) | (30.8) | (36.4) | (31.4) | (31.4) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Cumulative effect of an accounting change | 0 | ||||||||||
Current year deferrals to AOCI | 0 | (0.1) | 0 | 0 | (1.5) | 0 | |||||
Reclassifications from AOCI to Net income (loss) | 0.3 | 0.5 | 0 | 0.2 | (0.1) | 0.6 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.3 | 0.4 | 0 | 0.2 | (1.6) | 0.6 | |||||
Unrealized Gain (Loss) on Securities | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Accumulated other comprehensive loss | 0 | 0 | 0 | 0 | 0.8 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Cumulative effect of an accounting change | (0.8) | ||||||||||
Current year deferrals to AOCI | 0 | 0 | 0 | ||||||||
Reclassifications from AOCI to Net income (loss) | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 0 | 0 | ||||||||
Unrealized Gain (Loss) on Derivatives | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Accumulated other comprehensive loss | (34.2) | (30.3) | (12.7) | 12.4 | 9 | 4.7 | (0.3) | (1.6) | (1.6) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Cumulative effect of an accounting change | 0 | ||||||||||
Current year deferrals to AOCI | (4.4) | (17.3) | (11.4) | 3.5 | 4.5 | 6.4 | |||||
Reclassifications from AOCI to Net income (loss) | 0.5 | (0.3) | (1) | (0.1) | (0.2) | (0.1) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (3.9) | (17.6) | (12.4) | 3.4 | 4.3 | 6.3 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Accumulated other comprehensive loss | (411.8) | (356) | (335.7) | (312.4) | (299.6) | (192.7) | $ (336.1) | (241.8) | $ (241) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Cumulative effect of an accounting change | $ (0.8) | ||||||||||
Current year deferrals to AOCI | (56.6) | (23.1) | 1.4 | (12.9) | (106.6) | 48.6 | |||||
Reclassifications from AOCI to Net income (loss) | 0.8 | 2.8 | (1) | 0.1 | (0.3) | 0.5 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (55.8) | $ (20.3) | $ 0.4 | $ (12.8) | $ (106.9) | $ 49.1 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||||||||
Pension and other postretirement benefit plans, tax (benefit) expense | $ 0.2 | $ (0.4) | $ 0.5 | $ 0.4 | $ 0 | $ (0.3) | $ 0.3 | $ 0.1 |
Cumulative income tax expense (benefit) on pension and postretirement benefit plans | (14.1) | (12.9) | (14.1) | (12.9) | ||||
Unrealized gain (loss) on derivatives, income tax expense (benefit) | (0.7) | 0.2 | (5.6) | 2.2 | ||||
Cumulative income tax expense (benefit) on derivatives | $ (5.1) | $ 1.6 | $ (5.1) | $ 1.6 |
Uncategorized Items - a20190930
Label | Element | Value |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 100,000 |