Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 19, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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, $1.00 par value | |
Trading Symbol | AXTA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 235,476,819 | |
Entity Central Index Key | 0001616862 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,026.9 | $ 1,107 | $ 2,663.1 | $ 3,383.8 |
Cost of goods sold | 634.1 | 707.4 | 1,780.1 | 2,207.1 |
Selling, general and administrative expenses | 166.5 | 199.2 | 516.1 | 617.2 |
Other operating charges | 42.6 | 31.8 | 98.9 | 41.4 |
Research and development expenses | 13.4 | 17.4 | 41.2 | 53.5 |
Amortization of acquired intangibles | 28.6 | 28.2 | 84.5 | 85.1 |
Income from operations | 141.7 | 123 | 142.3 | 379.5 |
Interest expense, net | 39.8 | 40.2 | 112.4 | 122.5 |
Other expense (income), net | 2.3 | (1.9) | 0.9 | (3.8) |
Income before income taxes | 99.6 | 84.7 | 29 | 260.8 |
Provision (benefit) for income taxes | 17.1 | 18.3 | (22.7) | 50.4 |
Net income | 82.5 | 66.4 | 51.7 | 210.4 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0.9 | (0.2) | 3.1 |
Net income attributable to controlling interests | $ 82.5 | $ 65.5 | $ 51.9 | $ 207.3 |
Basic net income per share (in dollars per share) | $ 0.35 | $ 0.28 | $ 0.22 | $ 0.89 |
Diluted net income per share (in dollars per share) | $ 0.35 | $ 0.28 | $ 0.22 | $ 0.88 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 82.5 | $ 66.4 | $ 51.7 | $ 210.4 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 33.4 | (52.8) | (46.1) | (40.4) |
Unrealized gain (loss) on derivatives | 7 | (4.6) | (36.3) | (39.5) |
Unrealized (loss) gain on pension plan obligations | (0.5) | 0.5 | (0.5) | 1 |
Other comprehensive income (loss), before tax | 39.9 | (56.9) | (82.9) | (78.9) |
Income tax provision (benefit) related to items of other comprehensive income (loss) | 1 | (0.5) | (5.4) | (5.3) |
Other comprehensive income (loss), net of tax | 38.9 | (56.4) | (77.5) | (73.6) |
Comprehensive income (loss) | 121.4 | 10 | (25.8) | 136.8 |
Less: Comprehensive (loss) income attributable to noncontrolling interests | (0.5) | 0.3 | (3) | 5.2 |
Comprehensive income (loss) attributable to controlling interests | $ 121.9 | $ 9.7 | $ (22.8) | $ 131.6 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,341.3 | $ 1,017.5 |
Restricted cash | 2.9 | 3 |
Accounts and notes receivable, net | 824.2 | 830.1 |
Inventories | 536.7 | 591.6 |
Prepaid expenses and other current assets | 145.2 | 131.2 |
Total current assets | 2,850.3 | 2,573.4 |
Property, plant and equipment, net | 1,165.2 | 1,223 |
Goodwill | 1,245.8 | 1,208.9 |
Identifiable intangibles, net | 1,148.6 | 1,223.9 |
Other assets | 626.6 | 588.8 |
Total assets | 7,036.5 | 6,818 |
Current liabilities: | ||
Accounts payable | 482.9 | 483.7 |
Current portion of borrowings | 48.7 | 43.9 |
Other accrued liabilities | 533.6 | 545.3 |
Total current liabilities | 1,065.2 | 1,072.9 |
Long-term borrowings | 4,010.9 | 3,790.2 |
Accrued pensions | 284 | 285.2 |
Deferred income taxes | 108.5 | 115.5 |
Other liabilities | 183.2 | 144.6 |
Total liabilities | 5,651.8 | 5,408.4 |
Commitments and contingencies (Note 5) | ||
Shareholders’ equity: | ||
Common shares, $1.00 par, 1,000.0 shares authorized, 250.7 and 250.1 shares issued at September 30, 2020 and December 31, 2019, respectively | 250.6 | 249.9 |
Capital in excess of par | 1,484.1 | 1,474.1 |
Retained earnings | 493.6 | 443.2 |
Treasury shares, at cost, 15.2 shares at September 30, 2020 and December 31, 2019 | (418.4) | (417.5) |
Accumulated other comprehensive loss | (470.2) | (395.5) |
Total Axalta shareholders’ equity | 1,339.7 | 1,354.2 |
Noncontrolling interests | 45 | 55.4 |
Total shareholders’ equity | 1,384.7 | 1,409.6 |
Total liabilities and shareholders’ equity | $ 7,036.5 | $ 6,818 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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) | 250,700,000 | 250,100,000 |
Treasury shares, at cost (in shares) | 15,200,000 | 15,200,000 |
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 | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests |
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 (loss) | 44.1 | 43.4 | 0.7 | ||||
Net realized and unrealized gain (loss) on derivatives, net of tax | (12.4) | (12.4) | |||||
Long-term employee benefit plans, net of tax | 0 | ||||||
Foreign currency translation, net of tax | 13.3 | 12.8 | 0.5 | ||||
Comprehensive income (loss) | 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 | ||||
Ownership changes relating to noncontrolling interests | (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 (loss) | 210.4 | ||||||
Comprehensive income (loss) | 136.8 | ||||||
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 (loss) | 99.9 | 98.4 | 1.5 | ||||
Net realized and unrealized gain (loss) on derivatives, net of tax | (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 | ||||
Comprehensive income (loss) | 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 | ||||
Ownership changes relating to 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 (loss) | 66.4 | 65.5 | 0.9 | ||||
Net realized and unrealized gain (loss) on derivatives, net of tax | (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) | ||||
Comprehensive income (loss) | 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 | ||||
Ownership changes relating to noncontrolling interests | (0.5) | (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 |
Beginning balance (in shares) at Dec. 31, 2019 | 234.9 | ||||||
Beginning balance at Dec. 31, 2019 | 1,409.6 | $ 249.9 | 1,474.1 | 443.2 | (417.5) | (395.5) | 55.4 |
Comprehensive income (loss): | |||||||
Net income (loss) | 52.4 | 52.2 | 0.2 | ||||
Net realized and unrealized gain (loss) on derivatives, net of tax | (34.7) | (34.7) | |||||
Long-term employee benefit plans, net of tax | (0.4) | (0.4) | |||||
Foreign currency translation, net of tax | (86.5) | (83.3) | (3.2) | ||||
Comprehensive income (loss) | (69.2) | 52.2 | (118.4) | (3) | |||
Recognition of stock-based compensation | 5.1 | 5.1 | |||||
Shares issued under compensation plans (in shares) | 0.4 | ||||||
Shares issued under compensation plans | (1.1) | $ 0.5 | (1.6) | ||||
Ownership changes relating to noncontrolling interests | (1.6) | 0.5 | (2.1) | ||||
Dividends declared to noncontrolling interests | (0.5) | (0.5) | |||||
Ending balance (in shares) at Mar. 31, 2020 | 235.3 | ||||||
Ending balance at Mar. 31, 2020 | 1,340.8 | $ 250.4 | 1,478.1 | 493.9 | (417.5) | (513.9) | 49.8 |
Beginning balance (in shares) at Dec. 31, 2019 | 234.9 | ||||||
Beginning balance at Dec. 31, 2019 | 1,409.6 | $ 249.9 | 1,474.1 | 443.2 | (417.5) | (395.5) | 55.4 |
Comprehensive income (loss): | |||||||
Net income (loss) | 51.7 | ||||||
Comprehensive income (loss) | $ (25.8) | ||||||
Shares issued under compensation plans (in shares) | 0.1 | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 235.5 | ||||||
Ending balance at Sep. 30, 2020 | $ 1,384.7 | $ 250.6 | 1,484.1 | 493.6 | (418.4) | (470.2) | 45 |
Beginning balance (in shares) at Mar. 31, 2020 | 235.3 | ||||||
Beginning balance at Mar. 31, 2020 | 1,340.8 | $ 250.4 | 1,478.1 | 493.9 | (417.5) | (513.9) | 49.8 |
Comprehensive income (loss): | |||||||
Net income (loss) | (83.2) | (82.8) | (0.4) | ||||
Net realized and unrealized gain (loss) on derivatives, net of tax | (2.2) | (2.2) | |||||
Long-term employee benefit plans, net of tax | 0.4 | 0.4 | |||||
Foreign currency translation, net of tax | 7 | 6.1 | 0.9 | ||||
Comprehensive income (loss) | (78) | (82.8) | 4.3 | 0.5 | |||
Recognition of stock-based compensation | 6.1 | 6.1 | |||||
Shares issued under compensation plans (in shares) | 0.1 | ||||||
Shares issued under compensation plans | 1.2 | $ 0.1 | 1.1 | ||||
Changes in redeemable noncontrolling interest | (10.6) | (5.8) | (4.8) | ||||
Common stock purchases | (0.9) | (0.9) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 235.4 | ||||||
Ending balance at Jun. 30, 2020 | 1,258.6 | $ 250.5 | 1,479.5 | 411.1 | (418.4) | (509.6) | 45.5 |
Comprehensive income (loss): | |||||||
Net income (loss) | 82.5 | 82.5 | |||||
Net realized and unrealized gain (loss) on derivatives, net of tax | 6 | 6 | |||||
Long-term employee benefit plans, net of tax | (0.5) | (0.5) | |||||
Foreign currency translation, net of tax | 33.4 | 33.9 | (0.5) | ||||
Comprehensive income (loss) | 121.4 | 82.5 | 39.4 | (0.5) | |||
Recognition of stock-based compensation | 4.7 | 4.7 | |||||
Shares issued under compensation plans (in shares) | 0.1 | ||||||
Shares issued under compensation plans | 0 | $ 0.1 | (0.1) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 235.5 | ||||||
Ending balance at Sep. 30, 2020 | $ 1,384.7 | $ 250.6 | $ 1,484.1 | $ 493.6 | $ (418.4) | $ (470.2) | $ 45 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Loss on derivatives, tax (benefit) expense | $ 1 | $ (0.4) | $ (6) | $ (0.7) | $ (2.7) | $ (2.2) |
Long-term employee benefit plans, net of tax benefit (expense) | 0 | (0.2) | 0.2 | (0.2) | 0.4 | 0.5 |
Foreign currency translation, tax expense | $ 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, 2020 | Sep. 30, 2019 | |
Operating activities: | ||
Net income | $ 51.7 | $ 210.4 |
Adjustment to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 243.6 | 267.3 |
Amortization of deferred financing costs and original issue discount | 6.8 | 6.7 |
Debt extinguishment and refinancing related costs | 2.4 | 0.2 |
Deferred income taxes | (57.2) | (5.6) |
Realized and unrealized foreign exchange losses, net | 12.7 | 1.5 |
Stock-based compensation | 15.9 | 9.5 |
Divestitures and impairment charges | 3.5 | 3.4 |
Interest income on swaps designated as net investment hedges | (11) | (11) |
Other non-cash, net | 2.7 | (3.5) |
Changes in operating assets and liabilities: | ||
Trade accounts and notes receivable | (14) | (128.9) |
Inventories | 43.2 | (4) |
Prepaid expenses and other assets | (60.8) | (95) |
Accounts payable | 15.2 | 29.9 |
Other accrued liabilities | (40.9) | 0 |
Other liabilities | 17.1 | 8.9 |
Cash provided by operating activities | 230.9 | 289.8 |
Investing activities: | ||
Acquisitions, net of cash acquired | 0 | (2.1) |
Purchase of property, plant and equipment | (56.2) | (73.9) |
Proceeds from sale of consolidated joint venture, net of cash divested | 0 | 8.2 |
Interest proceeds on swaps designated as net investment hedges | 11 | 11 |
Other investing activities, net | 5.9 | (2.2) |
Cash used for investing activities | (39.3) | (59) |
Financing activities: | ||
Proceeds from long-term borrowings | 500 | 0 |
Payments on short-term borrowings | (23.2) | (29.5) |
Payments on long-term borrowings | (325.3) | (20) |
Financing-related costs | (8.4) | (1.5) |
Purchases of common stock | (0.9) | (105.3) |
Net cash flows associated with stock-based awards | 0.3 | 46 |
Purchase of noncontrolling interests | (5.8) | (31.1) |
Other financing activities, net | 0.1 | (3.6) |
Cash provided by (used for) financing activities | 136.8 | (145) |
Increase in cash | 328.4 | 85.8 |
Effect of exchange rate changes on cash | (4.7) | (12.1) |
Cash at beginning of period | 1,020.5 | 696.4 |
Cash at end of period | 1,344.2 | 770.1 |
Cash at end of period reconciliation: | ||
Cash at end of period | $ 1,344.2 | $ 770.1 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at September 30, 2020 and December 31, 2019, the results of operations, comprehensive income (loss) and changes in shareholders' equity for the three and nine months ended September 30, 2020 and 2019, 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, 2019. 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, 2020 are not necessarily indicative of the results to be expected for a full year. Summary of Significant Accounting Policies Updates Reclassifications The condensed consolidated statements of operations for the three and nine months ended September 30, 2019 have been updated for comparability with the current year presentation to separately present other operating charges as detailed in our annual report on Form 10-K for the year ended December 31, 2019. Recently Adopted Accounting Guidance On January 1, 2020, we adopted Accounting Standards Update ("ASU") 2016-13, “Financial Instruments - Credit Losses” under a modified retrospective approach for all financial assets. 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 provisions of this standard primarily impact the allowance for doubtful accounts on our trade receivables, in which we have applied historical loss percentages, combined with reasonable and supportable forecasts of future losses to the respective aging categories. Adoption of ASU 2016-13 at January 1, 2020 resulted in a one-time loss to retained earnings of $1.5 million on our condensed consolidated balance sheets and statements of shareholders' equity for the nine months ended September 30, 2020. In March 2020, we adopted ASU 2020-04, "Reference Rate Reform" which provides optional expedients exercisable through December 31, 2022 to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. As of September 30, 2020, the expedients provided in this standard do not impact the Company. We will continue to monitor for potential impacts on our financial statements. Accounting Guidance Issued But Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes" as part of its initiative to reduce complexity in accounting standards. The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The new standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of ASU 2019-12 on our financial statements. Risks and Uncertainties |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE 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 current assets on the balance sheet. The contract asset balances at September 30, 2020 and December 31, 2019 were $38.5 million and $37.5 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, 2020 and December 31, 2019, the total carrying value of BIPs were $170.7 million and $191.2 million, respectively, and are presented within other assets on the condensed consolidated balance sheets. For the three and nine months ended September 30, 2020 and 2019, $16.6 million, $49.9 million, $17.7 million and $50.8 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 $93.9 million and $79.0 million at September 30, 2020 and December 31, 2019, respectively, which will be repaid in future periods. See Note 16 for disaggregated net sales by end-market. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 to September 30, 2020 by reportable segment: Performance Transportation Total Balance at December 31, 2019 $ 1,130.9 $ 78.0 $ 1,208.9 Foreign currency translation 34.5 2.4 36.9 Balance at September 30, 2020 $ 1,165.4 $ 80.4 $ 1,245.8 Identifiable Intangible Assets The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: September 30, 2020 Gross Carrying Accumulated Net Book Weighted Average Technology $ 551.6 $ (359.0) $ 192.6 10.4 Trademarks - indefinite-lived 273.1 — 273.1 Indefinite Trademarks - definite-lived 100.7 (34.8) 65.9 16.0 Customer relationships 919.8 (307.6) 612.2 19.0 Other 15.2 (10.4) 4.8 5.0 Total $ 1,860.4 $ (711.8) $ 1,148.6 December 31, 2019 Gross Carrying Accumulated Net Book Weighted Average Technology $ 540.2 $ (310.6) $ 229.6 10.4 Trademarks—indefinite-lived 264.9 — 264.9 Indefinite Trademarks—definite-lived 99.7 (30.1) 69.6 15.8 Customer relationships 923.8 (271.3) 652.5 19.1 Other 15.2 (7.9) 7.3 5.0 Total $ 1,843.8 $ (619.9) $ 1,223.9 The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2020 and each of the succeeding five years is: Remainder of 2020 $ 28.5 2021 113.6 2022 111.4 2023 71.1 2024 66.2 2025 65.5 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING On July 29, 2020, we announced a global restructuring of our business given the significant customer demand headwinds we are facing due to COVID-19 and to better position the Company for sustained growth. The global restructuring resulted in pretax charges of $52.2 million for the nine months ended September 30, 2020, of which $48.2 million primarily relates to employee severance associated with a net reduction to our workforce of approximately 600 employees globally, while the remaining $4.0 million relates to accelerated depreciation, impairment of assets and other non-cash costs. The global restructuring is expected to result in total pretax charges of approximatel y $60-65 million. We also incurred incremental accelerated depreciation resulting from the previously announced closure of our manufacturing facility in Mechelen, Belgium for the three and nine months ended September 30, 2020 and 2019, of $0.0 million, $8.5 million, $5.4 million and $18.2 million, respectively, which was recorded to cost of goods sold in the condensed consolidated statements of operations. 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. During the three and nine months ended September 30, 2020 and 2019, we incurred restructuring costs of $35.2 million, $67.4 million, $29.2 million and $33.3 million, respectively. These amounts are recorded within other operating charges in the condensed consolidated statements of operations. The remaining payments associated with these actions are expected to be substantially completed within 24 months. The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2019 to September 30, 2020: 2020 Activity Balance at December 31, 2019 $ 78.0 Expenses, net of changes to estimates 67.4 Payments made (68.5) Foreign currency translation 2.6 Balance at September 30, 2020 $ 79.5 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and December 31, 2019, we had outstanding bank guarantees of $9.6 million and $11.6 million, respectively. Most of our bank guarantees expire between 2020 and 2026, while others do not have specified expiration dates. We monitor the obligations to evaluate whether we have a liability at the balance sheet date. During the nine months ended September 30, 2020, we incurred and paid $1.0 million related to our outstanding bank guarantees. We did not have any liabilities related to our outstanding bank guarantees recorded at September 30, 2020 and December 31, 2019. 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 incurred by us. All of these matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the proceedings and other claims at this time. The potential effects, if any, on our condensed consolidated financial statements will be recorded in the period in which these matters are probable and estimable. We believe that any sum we may be required to pay in connection with proceedings or claims in excess of the amounts recorded would likely not have a material adverse effect upon our results of operations, financial conditions or cash flows on a consolidated annual basis but could have a material adverse impact in a particular quarterly reporting period. We are involved in environmental remediation and ongoing compliance activities at several sites. The timing and duration of remediation and ongoing compliance activities are determined on a site by site basis depending on local regulations. The liabilities recorded represent our estimable future remediation costs and other anticipated environmental liabilities. We have not recorded liabilities at sites where a liability is probable, but that a range of loss is not reasonably estimable. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis but could have a material adverse impact in a particular quarterly reporting period. |
Long-term Employee Benefits
Long-term Employee Benefits | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 1.8 $ 1.8 $ 5.5 $ 5.4 Interest cost 2.6 3.2 7.2 9.8 Expected return on plan assets (3.2) (3.4) (9.5) (10.4) Amortization of actuarial loss, net 0.7 0.5 2.5 1.4 Plan curtailments, settlements and special termination benefits (0.7) — (2.5) — Net periodic benefit cost $ 1.2 $ 2.1 $ 3.2 $ 6.2 All non-service components of net periodic benefit cost are recorded in other expense (income), net within the accompanying condensed consolidated statements of operations. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION During the three and nine months ended September 30, 2020 and 2019, we recognized expenses of $4.7 million, $15.9 million, $4.2 million and $9.5 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. The increase in expense during 2020 resulted primarily from forfeitures recognized during the nine months ended September 30, 2019. We recognized tax benefits of $0.1 million, $1.6 million, $0.4 million and $1.5 million for the three and nine months ended September 30, 2020 and 2019, respectively. 2020 Activity In February 2020, we granted 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. During 2020, the Company withheld shares and used cash to settle the employees' tax obligation from vesting of awards in the amount of $1.1 million. A summary of award activity by type for the nine months ended September 30, 2020 is presented below. Stock Options Awards Weighted- Aggregate Weighted Outstanding at January 1, 2020 3.0 $ 25.92 Granted — $ — Exercised (0.1) $ 13.12 Forfeited (1) — $ 28.49 Outstanding at September 30, 2020 2.9 $ 26.46 Vested and expected to vest at September 30, 2020 2.9 $ 26.46 $ 4.7 5.03 Exercisable at September 30, 2020 2.3 $ 26.21 $ 4.7 4.31 (1) Activity during the nine months ended September 30, 2020 rounds to zero. Cash received by the Company upon exercise of options for the nine months ended September 30, 2020 was $1.4 million. Excess tax benefits on these exercises were $0.3 million. At September 30, 2020, there is $1.1 million of unrecognized expense relating to unvested stock options that is expected to be amortized over a weighted average period of 1.1 years. Restricted Stock Awards and Restricted Stock Units Awards/Units Weighted-Average Outstanding at January 1, 2020 1.2 $ 28.45 Granted 0.4 $ 29.54 Vested (0.5) $ 28.60 Forfeited (0.1) $ 28.27 Outstanding at September 30, 2020 1.0 $ 28.89 Tax shortfall expenses on the vesting of restricted stock awards and restricted stock units during the nine months ended September 30, 2020 was $0.3 million. At September 30, 2020, there is $12.4 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 1.4 years. Performance Stock Awards and Performance Share Units Awards/Units Weighted-Average Outstanding at January 1, 2020 0.5 $ 32.11 Granted 0.4 $ 31.88 Vested (0.1) $ 38.11 Forfeited (0.1) $ 32.90 Outstanding at September 30, 2020 0.7 $ 31.14 Our performance stock awards and performance share units allow for participants to vest in more or less than the targeted number of shares granted. Some of our awards are currently performing better than targets, while others are performing worse than targets. We currently expect a total of 0.6 million shares with a weighted average fair value per share of $30.51 to vest. At September 30, 2020, there is $11.2 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 2.0 years. The forfeitures include performance stock awards and performance share units that vested below target. |
Other Expense (Income), Net
Other Expense (Income), Net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net | OTHER EXPENSE (INCOME), NET Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Foreign exchange losses, net $ 5.5 $ 0.7 $ 7.5 $ 5.3 Debt extinguishment and refinancing related costs — — 2.4 0.2 Other miscellaneous income, net (3.2) (2.6) (9.0) (9.3) Total $ 2.3 $ (1.9) $ 0.9 $ (3.8) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rates for the nine months ended September 30, 2020 and 2019 are as follows: Nine Months Ended September 30, 2020 2019 Effective Tax Rate (78.3) % 19.3 % The Company's effective tax rate for the periods reflected in the condensed consolidated financial statements are not directly comparable primarily due to the intra-entity asset transfers of certain of its intellectual property and the impacts of certain ongoing tax audits, which occurred during the nine months ended September 30, 2020 and are discussed in further detail below. On January 1, 2020, we completed an intra-entity transfer of certain intellectual property rights (the “IP”) to our Swiss subsidiary, where our EMEA regional headquarters is located. The transfer of the IP did not result in a taxable gain; however, it did result in step-up of the Swiss tax-deductible basis in the transferred assets and, accordingly, created a temporary difference between the book basis and the tax basis of the IP, which was transferred at fair value. We applied significant judgment when determining the fair value of the IP, which serves as the tax basis of the deferred tax asset. Consequently, this transaction resulted in the recognition of a deferred tax asset at the applicable Swiss tax rate, resulting in a one-time tax benefit of $50.5 million during the nine months ended September 30, 2020. The Company expects to be able to realize the deferred tax assets resulting from these intra-entity asset transfers. In connection with the income tax audit in Germany for the tax period 2010-2013, the Germany Tax Authority (“GTA”) indicated that it believed that certain positions taken on the 2010-2013 corporate income tax returns were not in compliance with German tax law. While the Company believes our filings were accurate based on the technical merits of our positions, after extensive discussions with the GTA, in March 2020 the Company expressed a willingness to settle with the GTA on certain matters and expects to reach a formal agreement in the coming months. As a result of these changes, the Company recorded a charge to income tax expense of $14.3 million during the nine months ended September 30, 2020. The Company is also currently under audit in Germany for tax years 2014-2017 and is prepared to vigorously defend itself on these matters. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NET INCOME 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) 2020 2019 2020 2019 Net income to common shareholders $ 82.5 $ 65.5 $ 51.9 $ 207.3 Basic weighted average shares outstanding 235.3 233.9 235.1 233.8 Diluted weighted average shares outstanding 236.0 235.5 235.9 235.8 Net income per common share: Basic net income per share $ 0.35 $ 0.28 $ 0.22 $ 0.89 Diluted net income per share $ 0.35 $ 0.28 $ 0.22 $ 0.88 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, 2020 and 2019 were 2.8 million, 2.9 million, 2.4 million and 2.8 million, respectively. |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, Net | ACCOUNTS AND NOTES RECEIVABLE, NET Trade accounts receivable are stated at the amount we expect to collect. We maintain allowances for doubtful accounts for estimated losses by applying historical loss percentages, combined with reasonable and supportable forecasts of future losses, to respective aging categories. Management considers the following factors in developing its current estimate of expected credit losses: customer credit-worthiness, past transaction history with the customer, current economic industry trends, changes in market or regulatory matters, and changes in customer payment terms, including the impacts from COVID-19. September 30, 2020 December 31, 2019 Accounts receivable - trade, net (1) $ 715.9 $ 718.4 Notes receivable 20.2 24.7 Other 88.1 87.0 Total $ 824.2 $ 830.1 (1) Allowance for doubtful accounts was $27.2 million and $16.0 million at September 30, 2020 and December 31, 2019, respectively. Bad debt expense of $2.4 million, $12.8 million, $1.1 million and $3.7 million was included within selling, general and administrative expenses for the three and nine months ended September 30, 2020 and 2019, respectively. The increase in expense for the nine months ended September 30, 2020, was as a result of the increased risk for future credit losses primarily related to the COVID-19 pandemic. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES September 30, 2020 December 31, 2019 Finished products $ 299.5 $ 327.4 Semi-finished products 90.9 109.9 Raw materials 125.7 133.7 Stores and supplies 20.6 20.6 Total $ 536.7 $ 591.6 Inventory reserves were $19.2 million and $13.1 million at September 30, 2020 and December 31, 2019, respectively. The increase in our reserve at September 30, 2020, includes impacts from obsolescence due to a lower demand environment resulting from the COVID-19 pandemic. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET September 30, 2020 December 31, 2019 Property, plant and equipment $ 2,227.6 $ 2,231.9 Accumulated depreciation (1,062.4) (1,008.9) Property, plant, and equipment, net $ 1,165.2 $ 1,223.0 Depreciation expense amounted to $31.1 million, $104.4 million, $40.2 million and $129.3 million for the three and nine months ended September 30, 2020 and 2019, respectively. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Borrowings are summarized as follows: September 30, 2020 December 31, 2019 2024 Dollar Term Loans $ 2,069.3 $ 2,387.5 2024 Dollar Senior Notes 500.0 500.0 2024 Euro Senior Notes 391.4 375.2 2025 Euro Senior Notes 525.8 504.0 2027 Dollar Senior Notes 500.0 — Short-term and other borrowings 114.2 109.0 Unamortized original issue discount (7.9) (10.5) Unamortized deferred financing costs (33.2) (31.1) Total borrowings, net 4,059.6 3,834.1 Less: Short-term borrowings 24.4 19.6 Current portion of long-term borrowings 24.3 24.3 Long-term debt $ 4,010.9 $ 3,790.2 Revolving Credit Facility At September 30, 2020 and December 31, 2019, letters of credit issued under the Revolving Credit Facility totaled $34.0 million and $38.8 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $366.0 million and $361.2 million at September 30, 2020 and December 31, 2019, respectively. Significant Transactions During January 2020, we voluntarily prepaid $300.0 million of the outstanding principal on the 2024 Dollar Term Loans. As a result of the prepayment, we recorded a loss on extinguishment of debt of $2.7 million consisting of the write off of unamortized deferred financing costs and original issue discounts of $1.5 million and $1.2 million, respectively. Issuance of 2027 Senior Notes During June 2020, Axalta Coating Systems, LLC and Axalta Coating Systems Dutch Holding B B.V. (collectively, the "Issuers"), each an indirect, wholly owned subsidiary of the Company, issued $500.0 million in aggregate principal amount of 4.750% Senior Notes due 2027 (the “2027 Senior Notes”). The 2027 Senior Notes are fully and unconditionally guaranteed by the Company and each of the Company's existing restricted subsidiaries, subject to certain exceptions. The indenture governing the 2027 Senior Notes contains covenants that limit the Company’s (and its subsidiaries’) ability to, among other things: (i) incur additional debt or issue certain preferred stock; (ii) pay dividends, redeem stock or make other distributions; (iii) make other restricted payments or investments; (iv) create liens on assets; (v) transfer or sell assets; (vi) create restrictions on payment of dividends or other amounts by the Company to the Company’s restricted subsidiaries; (vii) engage in mergers or consolidations; (viii) engage in certain transactions with affiliates; and (ix) designate the Company’s subsidiaries as unrestricted subsidiaries. The 2027 Senior Notes were issued at par and are due June 15, 2027. We deferred debt issuance costs of $8.3 million, which are recorded as reductions to long-term borrowings in the condensed consolidated balance sheets and amortized over the life of the issuance. The 2027 Senior Notes bear interest at 4.750% which is payable semi-annually on June 15 th and December 15 th . We have the option to redeem all or part of the 2027 Senior Notes at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, on or after June 15 th of the years indicated: Period 2027 Senior Notes Percentage 2023 102.375 % 2024 101.188 % 2025 and thereafter 100.000 % Notwithstanding the foregoing, at any time and from time to time prior to June 15, 2023, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2027 Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2027 Senior Notes) at a redemption price of 104.75% 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 2027 Senior Notes have the right to require us to repurchase all or any part of the 2027 Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date. The indebtedness under the 2027 Senior Notes is senior unsecured indebtedness of the Issuers, is senior in right of payment to all future subordinated indebtedness of the Issuers and guarantors, and is equal in right of payment to all existing and future senior indebtedness of the Issuers and guarantors. The 2027 Senior Notes are effectively subordinated to any secured indebtedness of the Issuers 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, 2020. Remainder of 2020 $ 17.8 2021 36.8 2022 54.2 2023 27.2 2024 2,884.7 Thereafter 1,080.0 Total borrowings 4,100.7 Unamortized original issue discount (7.9) Unamortized deferred financing costs (33.2) Total borrowings, net $ 4,059.6 |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
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 (income), net. The fair values of equity securities are based upon quoted market prices, which are considered Level 1 inputs. Long-term borrowings - The estimated fair values of these borrowings are based on recent trades, as reported by a third-party pricing service. Due to the infrequency of trades, these inputs are considered to be Level 2 inputs. Derivative instruments - The Company’s interest rate caps, interest rate swaps, cross-currency swaps, and foreign currency forward contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are included in the Level 2 hierarchy. 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, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Prepaid expenses and other current assets: Cross-currency swaps (2) $ — $ 14.3 $ — $ 14.3 $ — $ 14.4 $ — $ 14.4 Foreign currency forward contracts (1) — 0.1 — 0.1 — — — — Other assets: Cross-currency swaps (2) — — — — — 8.0 — 8.0 Investments in equity securities 0.7 — — 0.7 0.6 — — 0.6 Liabilities: Other accrued liabilities: Interest rate caps (1) — 2.0 — 2.0 — 1.3 — 1.3 Interest rate swaps (1) — 28.6 — 28.6 — 8.9 — 8.9 Other liabilities: Interest rate caps (1) — 0.5 — 0.5 — 1.2 — 1.2 Interest rate swaps (1) — 37.3 — 37.3 — 20.5 — 20.5 Cross-currency swaps (2) — 0.4 — 0.4 — — — — Long-term borrowings: 2024 Dollar Term Loans — 2,033.7 — 2,033.7 — 2,396.5 — 2,396.5 2024 Dollar Senior Notes — 512.6 — 512.6 — 520.2 — 520.2 2024 Euro Senior Notes — 395.8 — 395.8 — 388.2 — 388.2 2025 Euro Senior Notes — 529.7 — 529.7 — 520.7 — 520.7 2027 Dollar Senior Notes — 515.7 — 515.7 — — — — (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. Derivative Instruments Qualifying and Designated as Cash Flow and Net Investment Hedges Interest Rate Swaps Designated as Cash Flow Hedges During the three months ended March 31, 2020, we entered into two interest rate swaps with aggregate notional amounts totaling $400.0 million to hedge interest rate exposures associated with the 2024 Dollar Term Loans. Under the terms of the interest rate swap agreements, the Company is required to pay the counterparties a stream of fixed interest payments at rates of 1.61% and 1.18% on $200.0 million of notional value for each instrument, 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 accumulated other comprehensive loss ("AOCI") and reclassified to interest expense in the same period or periods during which the hedged transactions affect earnings. Foreign Currency Forward Contracts Designated as Cash Flow Hedges During the three months ended March 31, 2020, we designated foreign currency forward contracts with a notional value of $5.0 million as cash flow hedges of the Company’s exposure to variability in exchange rates on forecasted purchases of inventory denominated in foreign currencies. These forward currency contracts are marked to market at each reporting date and any unrealized gains or losses are included in AOCI and reclassified to cost of goods sold in the same period or periods during which the hedged transactions affect earnings. 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, 2020 December 31, 2019 AOCI: Interest rate caps (cash flow hedges) $ 3.2 $ 3.5 Interest rate swaps (cash flow hedges) 65.9 29.4 Foreign currency forward contracts (cash flow hedges) 0.1 — Cross-currency swaps (net investment hedges) (13.9) (22.4) Total AOCI $ 55.3 $ 10.5 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, 2020 and 2019 for these cash flow and net investment hedges. For the Three Months Ended September 30, 2020 2019 Derivatives in Cash Flow and Net Investment Hedges Location of Loss Recognized in Income on Derivatives Net Amount of Loss Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Interest rate caps Interest expense, net $ 0.1 $ 0.6 $ 0.3 $ 0.1 Interest rate swaps Interest expense, net 0.4 7.0 4.8 0.4 Foreign currency forward contracts Cost of goods sold 0.1 — — — Cross-currency swaps Interest expense, net 16.9 (3.6) (24.2) (3.8) For the Nine Months Ended September 30, 2020 2019 Derivatives in Cash Flow and Net Investment Hedges Location of Loss (Gain) Recognized in Income on Derivatives Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Interest rate caps Interest expense, net $ 1.2 $ 1.5 $ 6.2 $ (1.5) Interest rate swaps Interest expense, net 48.0 11.5 32.4 0.5 Foreign currency forward contracts Cost of goods sold 0.1 — — — Cross-currency swaps Interest expense, net (2.5) (11.0) (39.1) (11.0) Over the next 12 months, we expect losses of $32.5 million pertaining to cash flow hedges to be reclassified from AOCI into earnings, related to our interest rate caps, interest rate swaps, and foreign currency forward contracts. Derivative Instruments Not Designated as 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 expense (income), net in the condensed consolidated statement of operations. Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that were not designated for hedge accounting treatment were recorded in earnings as follows: Derivatives Not Designated as Hedging Location of Loss (Gain) Recognized in Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Foreign currency forward contracts Other income, net $ (4.4) $ 2.3 $ (5.3) $ 4.1 |
Segments
Segments | 9 Months Ended |
Sep. 30, 2020 | |
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. Adjusted EBIT is the primary measure to evaluate financial performance of the operating segments and allocate resources. Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. The following table presents relevant information of our reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net sales (1) : Refinish $ 401.7 $ 441.5 $ 1,031.4 $ 1,294.3 Industrial 281.0 282.2 781.1 899.4 Total Net sales Performance Coatings 682.7 723.7 1,812.5 2,193.7 Light Vehicle 276.3 295.7 662.7 917.7 Commercial Vehicle 67.9 87.6 187.9 272.4 Total Net sales Transportation Coatings 344.2 383.3 850.6 1,190.1 Total Net sales $ 1,026.9 $ 1,107.0 $ 2,663.1 $ 3,383.8 Equity in earnings in unconsolidated affiliates: Performance Coatings $ 0.1 $ 0.2 $ 0.1 $ 0.4 Transportation Coatings (0.2) (0.1) (0.3) (0.1) Total $ (0.1) $ 0.1 $ (0.2) $ 0.3 September 30, December 31, Investment in unconsolidated affiliates: Performance Coatings $ 2.1 $ 2.4 Transportation Coatings 8.2 12.7 Total $ 10.3 $ 15.1 (1) The Company has no intercompany sales between segments. The following table reconciles our segment operating performance to income before income taxes for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Segment Adjusted EBIT (1) : Performance Coatings $ 133.9 $ 124.9 $ 214.8 $ 331.1 Transportation Coatings 48.5 37.2 35.0 111.8 Total (2) 182.4 162.1 249.8 442.9 Interest expense, net 39.8 40.2 112.4 122.5 Debt extinguishment and refinancing related costs (a) — — 2.4 0.2 Termination benefits and other employee related costs (b) 35.7 29.2 70.4 33.3 Strategic review and retention costs (c) 6.9 3.0 25.1 3.8 Offering and transactional costs (d) 0.1 0.1 0.3 0.9 Loss (gain) on divestiture and impairments (e) 0.3 (0.5) 3.5 3.4 Pension special events (f) (0.7) — (2.5) — Accelerated depreciation (g) 0.4 5.4 8.9 18.2 Indemnity loss (income) (h) 0.3 — 0.3 (0.2) Income before income taxes $ 99.6 $ 84.7 $ 29.0 $ 260.8 (1) The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBIT is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents Adjusted EBIT adjusted for the select items referred to above. (2) Does not represent Axalta’s Adjusted EBIT referenced elsewhere by the Company as there are additional adjustments that are not allocated to the segments. (a) Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. (b) Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are primarily associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance. (c) Represents costs for legal, tax and other advisory fees pertaining to our review of strategic alternatives that was concluded in March 2020, as well as retention awards for certain employees which will be earned over a period of 18-24 months. These amounts are not considered indicative of our ongoing operating performance. (d) Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance. (e) Represents expenses and associated changes to estimates related to the sale of our interest in a joint venture business and other impairments, which are not considered indicative of our ongoing operating performance. (f) Represents certain defined benefit pension costs associated with special events, including pension curtailments, settlements and special termination benefits, which we do not consider indicative of our ongoing operating performance. (g) Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance. (h) Represents indemnity loss (income) associated with the acquisition by Axalta of the DuPont Performance Coatings business, which we do not consider indicative of our ongoing operating performance. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Unrealized Pension Unrealized Accumulated Balance at December 31, 2019 $ (297.0) $ (69.9) $ (28.6) $ (395.5) Current year deferrals to AOCI (83.3) — (36.3) (119.6) Reclassifications from AOCI to Net income — (0.4) 1.6 1.2 Net Change (83.3) (0.4) (34.7) (118.4) Balance at March 31, 2020 (380.3) (70.3) (63.3) (513.9) Current year deferrals to AOCI 6.1 — (5.2) 0.9 Reclassifications from AOCI to Net income — 0.4 3.0 3.4 Net Change 6.1 0.4 (2.2) 4.3 Balance at June 30, 2020 (374.2) (69.9) (65.5) (509.6) Current year deferrals to AOCI 33.9 (0.2) (0.5) 33.2 Reclassifications from AOCI to Net income — (0.3) 6.5 6.2 Net Change 33.9 (0.5) 6.0 39.4 Balance at September 30, 2020 $ (340.3) $ (70.4) $ (59.5) $ (470.2) Included within reclassifications from AOCI to net income for the three and nine months ended September 30, 2020 were net curtailment and settlement impacts of $1.3 million and $3.1 million, respectively. The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2020 was $27.0 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at September 30, 2020 was $9.7 million. Unrealized Pension Unrealized Accumulated 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 — — (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 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 — 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 cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2019 was $14.1 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at September 30, 2019 was $5.1 million. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications The condensed consolidated statements of operations for the three and nine months ended September 30, 2019 have been updated for comparability with the current year presentation to separately present other operating charges as detailed in our annual report on Form 10-K for the year ended December 31, 2019. |
Recently Adopted Accounting Guidance and Accounting Guidance Issued But Not Yet Adopted | Recently Adopted Accounting Guidance On January 1, 2020, we adopted Accounting Standards Update ("ASU") 2016-13, “Financial Instruments - Credit Losses” under a modified retrospective approach for all financial assets. 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 provisions of this standard primarily impact the allowance for doubtful accounts on our trade receivables, in which we have applied historical loss percentages, combined with reasonable and supportable forecasts of future losses to the respective aging categories. Adoption of ASU 2016-13 at January 1, 2020 resulted in a one-time loss to retained earnings of $1.5 million on our condensed consolidated balance sheets and statements of shareholders' equity for the nine months ended September 30, 2020. In March 2020, we adopted ASU 2020-04, "Reference Rate Reform" which provides optional expedients exercisable through December 31, 2022 to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. As of September 30, 2020, the expedients provided in this standard do not impact the Company. We will continue to monitor for potential impacts on our financial statements. Accounting Guidance Issued But Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes" as part of its initiative to reduce complexity in accounting standards. The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The new standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of ASU 2019-12 on our financial statements. |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2019 to September 30, 2020 by reportable segment: Performance Transportation Total Balance at December 31, 2019 $ 1,130.9 $ 78.0 $ 1,208.9 Foreign currency translation 34.5 2.4 36.9 Balance at September 30, 2020 $ 1,165.4 $ 80.4 $ 1,245.8 |
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, 2020 Gross Carrying Accumulated Net Book Weighted Average Technology $ 551.6 $ (359.0) $ 192.6 10.4 Trademarks - indefinite-lived 273.1 — 273.1 Indefinite Trademarks - definite-lived 100.7 (34.8) 65.9 16.0 Customer relationships 919.8 (307.6) 612.2 19.0 Other 15.2 (10.4) 4.8 5.0 Total $ 1,860.4 $ (711.8) $ 1,148.6 December 31, 2019 Gross Carrying Accumulated Net Book Weighted Average Technology $ 540.2 $ (310.6) $ 229.6 10.4 Trademarks—indefinite-lived 264.9 — 264.9 Indefinite Trademarks—definite-lived 99.7 (30.1) 69.6 15.8 Customer relationships 923.8 (271.3) 652.5 19.1 Other 15.2 (7.9) 7.3 5.0 Total $ 1,843.8 $ (619.9) $ 1,223.9 |
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 2020 and each of the succeeding five years is: Remainder of 2020 $ 28.5 2021 113.6 2022 111.4 2023 71.1 2024 66.2 2025 65.5 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 to September 30, 2020: 2020 Activity Balance at December 31, 2019 $ 78.0 Expenses, net of changes to estimates 67.4 Payments made (68.5) Foreign currency translation 2.6 Balance at September 30, 2020 $ 79.5 |
Long-term Employee Benefits (Ta
Long-term Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 1.8 $ 1.8 $ 5.5 $ 5.4 Interest cost 2.6 3.2 7.2 9.8 Expected return on plan assets (3.2) (3.4) (9.5) (10.4) Amortization of actuarial loss, net 0.7 0.5 2.5 1.4 Plan curtailments, settlements and special termination benefits (0.7) — (2.5) — Net periodic benefit cost $ 1.2 $ 2.1 $ 3.2 $ 6.2 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Options Roll Forward | A summary of award activity by type for the nine months ended September 30, 2020 is presented below. Stock Options Awards Weighted- Aggregate Weighted Outstanding at January 1, 2020 3.0 $ 25.92 Granted — $ — Exercised (0.1) $ 13.12 Forfeited (1) — $ 28.49 Outstanding at September 30, 2020 2.9 $ 26.46 Vested and expected to vest at September 30, 2020 2.9 $ 26.46 $ 4.7 5.03 Exercisable at September 30, 2020 2.3 $ 26.21 $ 4.7 4.31 (1) Activity during the nine months ended September 30, 2020 rounds to zero. |
Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward | Restricted Stock Awards and Restricted Stock Units Awards/Units Weighted-Average Outstanding at January 1, 2020 1.2 $ 28.45 Granted 0.4 $ 29.54 Vested (0.5) $ 28.60 Forfeited (0.1) $ 28.27 Outstanding at September 30, 2020 1.0 $ 28.89 |
Schedule of Performance Stock Roll Forward | Performance Stock Awards and Performance Share Units Awards/Units Weighted-Average Outstanding at January 1, 2020 0.5 $ 32.11 Granted 0.4 $ 31.88 Vested (0.1) $ 38.11 Forfeited (0.1) $ 32.90 Outstanding at September 30, 2020 0.7 $ 31.14 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Foreign exchange losses, net $ 5.5 $ 0.7 $ 7.5 $ 5.3 Debt extinguishment and refinancing related costs — — 2.4 0.2 Other miscellaneous income, net (3.2) (2.6) (9.0) (9.3) Total $ 2.3 $ (1.9) $ 0.9 $ (3.8) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rates for the nine months ended September 30, 2020 and 2019 are as follows: Nine Months Ended September 30, 2020 2019 Effective Tax Rate (78.3) % 19.3 % |
Net (Loss) Income Per Common Sh
Net (Loss) Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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) 2020 2019 2020 2019 Net income to common shareholders $ 82.5 $ 65.5 $ 51.9 $ 207.3 Basic weighted average shares outstanding 235.3 233.9 235.1 233.8 Diluted weighted average shares outstanding 236.0 235.5 235.9 235.8 Net income per common share: Basic net income per share $ 0.35 $ 0.28 $ 0.22 $ 0.89 Diluted net income per share $ 0.35 $ 0.28 $ 0.22 $ 0.88 |
Accounts and Notes Receivable_2
Accounts and Notes Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | September 30, 2020 December 31, 2019 Accounts receivable - trade, net (1) $ 715.9 $ 718.4 Notes receivable 20.2 24.7 Other 88.1 87.0 Total $ 824.2 $ 830.1 (1) Allowance for doubtful accounts was $27.2 million and $16.0 million at September 30, 2020 and December 31, 2019, respectively. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | September 30, 2020 December 31, 2019 Finished products $ 299.5 $ 327.4 Semi-finished products 90.9 109.9 Raw materials 125.7 133.7 Stores and supplies 20.6 20.6 Total $ 536.7 $ 591.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | September 30, 2020 December 31, 2019 Property, plant and equipment $ 2,227.6 $ 2,231.9 Accumulated depreciation (1,062.4) (1,008.9) Property, plant, and equipment, net $ 1,165.2 $ 1,223.0 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Borrowings are summarized as follows: September 30, 2020 December 31, 2019 2024 Dollar Term Loans $ 2,069.3 $ 2,387.5 2024 Dollar Senior Notes 500.0 500.0 2024 Euro Senior Notes 391.4 375.2 2025 Euro Senior Notes 525.8 504.0 2027 Dollar Senior Notes 500.0 — Short-term and other borrowings 114.2 109.0 Unamortized original issue discount (7.9) (10.5) Unamortized deferred financing costs (33.2) (31.1) Total borrowings, net 4,059.6 3,834.1 Less: Short-term borrowings 24.4 19.6 Current portion of long-term borrowings 24.3 24.3 Long-term debt $ 4,010.9 $ 3,790.2 |
Schedule of Debt Instrument Redemption | We have the option to redeem all or part of the 2027 Senior Notes at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, on or after June 15 th of the years indicated: Period 2027 Senior Notes Percentage 2023 102.375 % 2024 101.188 % 2025 and thereafter 100.000 % |
Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at September 30, 2020. Remainder of 2020 $ 17.8 2021 36.8 2022 54.2 2023 27.2 2024 2,884.7 Thereafter 1,080.0 Total borrowings 4,100.7 Unamortized original issue discount (7.9) Unamortized deferred financing costs (33.2) Total borrowings, net $ 4,059.6 |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Prepaid expenses and other current assets: Cross-currency swaps (2) $ — $ 14.3 $ — $ 14.3 $ — $ 14.4 $ — $ 14.4 Foreign currency forward contracts (1) — 0.1 — 0.1 — — — — Other assets: Cross-currency swaps (2) — — — — — 8.0 — 8.0 Investments in equity securities 0.7 — — 0.7 0.6 — — 0.6 Liabilities: Other accrued liabilities: Interest rate caps (1) — 2.0 — 2.0 — 1.3 — 1.3 Interest rate swaps (1) — 28.6 — 28.6 — 8.9 — 8.9 Other liabilities: Interest rate caps (1) — 0.5 — 0.5 — 1.2 — 1.2 Interest rate swaps (1) — 37.3 — 37.3 — 20.5 — 20.5 Cross-currency swaps (2) — 0.4 — 0.4 — — — — Long-term borrowings: 2024 Dollar Term Loans — 2,033.7 — 2,033.7 — 2,396.5 — 2,396.5 2024 Dollar Senior Notes — 512.6 — 512.6 — 520.2 — 520.2 2024 Euro Senior Notes — 395.8 — 395.8 — 388.2 — 388.2 2025 Euro Senior Notes — 529.7 — 529.7 — 520.7 — 520.7 2027 Dollar Senior Notes — 515.7 — 515.7 — — — — (1) Cash flow hedge (2) Net investment hedge |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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, 2020 December 31, 2019 AOCI: Interest rate caps (cash flow hedges) $ 3.2 $ 3.5 Interest rate swaps (cash flow hedges) 65.9 29.4 Foreign currency forward contracts (cash flow hedges) 0.1 — Cross-currency swaps (net investment hedges) (13.9) (22.4) Total AOCI $ 55.3 $ 10.5 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2020 and 2019 for these cash flow and net investment hedges. For the Three Months Ended September 30, 2020 2019 Derivatives in Cash Flow and Net Investment Hedges Location of Loss Recognized in Income on Derivatives Net Amount of Loss Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Interest rate caps Interest expense, net $ 0.1 $ 0.6 $ 0.3 $ 0.1 Interest rate swaps Interest expense, net 0.4 7.0 4.8 0.4 Foreign currency forward contracts Cost of goods sold 0.1 — — — Cross-currency swaps Interest expense, net 16.9 (3.6) (24.2) (3.8) For the Nine Months Ended September 30, 2020 2019 Derivatives in Cash Flow and Net Investment Hedges Location of Loss (Gain) Recognized in Income on Derivatives Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of Loss (Gain) Recognized in OCI on Derivatives Amount of (Gain) Loss Recognized in Income Interest rate caps Interest expense, net $ 1.2 $ 1.5 $ 6.2 $ (1.5) Interest rate swaps Interest expense, net 48.0 11.5 32.4 0.5 Foreign currency forward contracts Cost of goods sold 0.1 — — — Cross-currency swaps Interest expense, net (2.5) (11.0) (39.1) (11.0) |
Derivatives Not Designated as Hedging Instruments | Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that were not designated for hedge accounting treatment were recorded in earnings as follows: Derivatives Not Designated as Hedging Location of Loss (Gain) Recognized in Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Foreign currency forward contracts Other income, net $ (4.4) $ 2.3 $ (5.3) $ 4.1 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 Net sales (1) : Refinish $ 401.7 $ 441.5 $ 1,031.4 $ 1,294.3 Industrial 281.0 282.2 781.1 899.4 Total Net sales Performance Coatings 682.7 723.7 1,812.5 2,193.7 Light Vehicle 276.3 295.7 662.7 917.7 Commercial Vehicle 67.9 87.6 187.9 272.4 Total Net sales Transportation Coatings 344.2 383.3 850.6 1,190.1 Total Net sales $ 1,026.9 $ 1,107.0 $ 2,663.1 $ 3,383.8 Equity in earnings in unconsolidated affiliates: Performance Coatings $ 0.1 $ 0.2 $ 0.1 $ 0.4 Transportation Coatings (0.2) (0.1) (0.3) (0.1) Total $ (0.1) $ 0.1 $ (0.2) $ 0.3 September 30, December 31, Investment in unconsolidated affiliates: Performance Coatings $ 2.1 $ 2.4 Transportation Coatings 8.2 12.7 Total $ 10.3 $ 15.1 (1) The Company has no intercompany sales between segments. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles our segment operating performance to income before income taxes for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Segment Adjusted EBIT (1) : Performance Coatings $ 133.9 $ 124.9 $ 214.8 $ 331.1 Transportation Coatings 48.5 37.2 35.0 111.8 Total (2) 182.4 162.1 249.8 442.9 Interest expense, net 39.8 40.2 112.4 122.5 Debt extinguishment and refinancing related costs (a) — — 2.4 0.2 Termination benefits and other employee related costs (b) 35.7 29.2 70.4 33.3 Strategic review and retention costs (c) 6.9 3.0 25.1 3.8 Offering and transactional costs (d) 0.1 0.1 0.3 0.9 Loss (gain) on divestiture and impairments (e) 0.3 (0.5) 3.5 3.4 Pension special events (f) (0.7) — (2.5) — Accelerated depreciation (g) 0.4 5.4 8.9 18.2 Indemnity loss (income) (h) 0.3 — 0.3 (0.2) Income before income taxes $ 99.6 $ 84.7 $ 29.0 $ 260.8 (1) The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBIT is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents Adjusted EBIT adjusted for the select items referred to above. (2) Does not represent Axalta’s Adjusted EBIT referenced elsewhere by the Company as there are additional adjustments that are not allocated to the segments. (a) Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. (b) Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are primarily associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance. (c) Represents costs for legal, tax and other advisory fees pertaining to our review of strategic alternatives that was concluded in March 2020, as well as retention awards for certain employees which will be earned over a period of 18-24 months. These amounts are not considered indicative of our ongoing operating performance. (d) Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance. (e) Represents expenses and associated changes to estimates related to the sale of our interest in a joint venture business and other impairments, which are not considered indicative of our ongoing operating performance. (f) Represents certain defined benefit pension costs associated with special events, including pension curtailments, settlements and special termination benefits, which we do not consider indicative of our ongoing operating performance. (g) Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance. (h) Represents indemnity loss (income) associated with the acquisition by Axalta of the DuPont Performance Coatings business, which we do not consider indicative of our ongoing operating performance. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Unrealized Pension Unrealized Accumulated Balance at December 31, 2019 $ (297.0) $ (69.9) $ (28.6) $ (395.5) Current year deferrals to AOCI (83.3) — (36.3) (119.6) Reclassifications from AOCI to Net income — (0.4) 1.6 1.2 Net Change (83.3) (0.4) (34.7) (118.4) Balance at March 31, 2020 (380.3) (70.3) (63.3) (513.9) Current year deferrals to AOCI 6.1 — (5.2) 0.9 Reclassifications from AOCI to Net income — 0.4 3.0 3.4 Net Change 6.1 0.4 (2.2) 4.3 Balance at June 30, 2020 (374.2) (69.9) (65.5) (509.6) Current year deferrals to AOCI 33.9 (0.2) (0.5) 33.2 Reclassifications from AOCI to Net income — (0.3) 6.5 6.2 Net Change 33.9 (0.5) 6.0 39.4 Balance at September 30, 2020 $ (340.3) $ (70.4) $ (59.5) $ (470.2) Unrealized Pension Unrealized Accumulated 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 — — (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 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 — 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_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accounting Standards Update 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Loss to retained earnings | $ 1.5 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract with customer, asset | $ 38.5 | $ 38.5 | $ 37.5 | ||
Capitalized contract cost, net | 170.7 | 170.7 | 191.2 | ||
Capitalized contract cost, amortization | 16.6 | $ 17.7 | 49.9 | $ 50.8 | |
Upfront Incentive Payments | $ 93.9 | $ 93.9 | $ 79 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,208.9 |
Foreign currency translation | 36.9 |
Goodwill, ending balance | 1,245.8 |
Performance Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,130.9 |
Foreign currency translation | 34.5 |
Goodwill, ending balance | 1,165.4 |
Transportation Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 78 |
Foreign currency translation | 2.4 |
Goodwill, ending balance | $ 80.4 |
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, 2020 | Dec. 31, 2019 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 1,860.4 | $ 1,843.8 |
Accumulated Amortization | (711.8) | (619.9) |
Net Book Value, definite-lived | 1,148.6 | 1,223.9 |
Trademarks | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Net Book Value, indefinite-lived | 273.1 | 264.9 |
Technology | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 551.6 | 540.2 |
Accumulated Amortization | (359) | (310.6) |
Net Book Value, definite-lived | $ 192.6 | $ 229.6 |
Weighted Average Amortization Periods (years) | 10 years 4 months 24 days | 10 years 4 months 24 days |
Trademarks | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 100.7 | $ 99.7 |
Accumulated Amortization | (34.8) | (30.1) |
Net Book Value, definite-lived | $ 65.9 | $ 69.6 |
Weighted Average Amortization Periods (years) | 16 years | 15 years 9 months 18 days |
Customer relationships | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 919.8 | $ 923.8 |
Accumulated Amortization | (307.6) | (271.3) |
Net Book Value, definite-lived | $ 612.2 | $ 652.5 |
Weighted Average Amortization Periods (years) | 19 years | 19 years 1 month 6 days |
Other | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 15.2 | $ 15.2 |
Accumulated Amortization | (10.4) | (7.9) |
Net Book Value, definite-lived | $ 4.8 | $ 7.3 |
Weighted Average Amortization Periods (years) | 5 years | 5 years |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions | Sep. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2020 | $ 28.5 |
2021 | 113.6 |
2022 | 111.4 |
2023 | 71.1 |
2024 | 66.2 |
2025 | $ 65.5 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Employee | Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 35.2 | $ 29.2 | $ 67.4 | $ 33.3 |
Accelerated depreciation | 0.4 | 5.4 | $ 8.9 | 18.2 |
Payment term (in months) | 24 months | |||
Global restructuring, COVID-19 and sustained growth | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 52.2 | |||
Approximate employee severance and other cash costs | 48.2 | |||
Number of employees in workforce reduction | Employee | 600 | |||
Accelerated depreciation and asset impairment | 4 | |||
Global restructuring, COVID-19 and sustained growth | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected pretax restructuring charges | 60 | $ 60 | ||
Global restructuring, COVID-19 and sustained growth | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected pretax restructuring charges | 65 | 65 | ||
Closure Of Mechelen, Belgium Manufacturing Facility | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accelerated depreciation | $ 0 | $ 5.4 | $ 8.5 | $ 18.2 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 78 | |||
Expenses, net of changes to estimates | $ 35.2 | $ 29.2 | 67.4 | $ 33.3 |
Payments made | (68.5) | |||
Foreign currency translation | 2.6 | |||
Ending balance | $ 79.5 | $ 79.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum exposure | $ 9,600,000 | $ 11,600,000 |
Outstanding bank guarantees incurred and paid | 1,000,000 | |
Current carrying value | $ 0 | $ 0 |
Long-term Employee Benefits - S
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 1.8 | $ 1.8 | $ 5.5 | $ 5.4 |
Interest cost | 2.6 | 3.2 | 7.2 | 9.8 |
Expected return on plan assets | (3.2) | (3.4) | (9.5) | (10.4) |
Amortization of actuarial loss, net | 0.7 | 0.5 | 2.5 | 1.4 |
Plan curtailments, settlements and special termination benefits | (0.7) | 0 | (2.5) | 0 |
Net periodic benefit cost | $ 1.2 | $ 2.1 | $ 3.2 | $ 6.2 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (income) | $ 4.7 | $ 4.2 | $ 15.9 | $ 9.5 |
Stock based compensation tax benefit (expense) | 0.1 | $ 0.4 | 1.6 | 1.5 |
Cash used to settle award | 1.1 | |||
Proceeds from stock options exercised | 0.3 | $ 46 | ||
Excess tax benefit | 0.3 | |||
Unrecognized compensation cost | 1.1 | 1.1 | ||
Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from stock options exercised | $ 1.4 | |||
Period for recognition of compensation not yet recognized | 1 year 1 month 6 days | |||
Restricted Stock and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition of compensation not yet recognized | 1 year 4 months 24 days | |||
Tax benefit realized on the vesting of restricted stock | $ 0.3 | |||
Compensation not yet recognized, share-based awards other than options | 12.4 | $ 12.4 | ||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition of compensation not yet recognized | 2 years | |||
Compensation not yet recognized, share-based awards other than options | $ 11.2 | $ 11.2 | ||
Performance stock awards expected to vest (in shares) | 0.6 | 0.6 | ||
Weighted average fair value per share of performance stock awards expected to vest (in usd per share) | $ 30.51 | $ 30.51 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2020 | |
Awards (in millions) | |
Beginning Balance (in shares) | 3 |
Granted (in shares) | 0 |
Exercised (in shares) | (0.1) |
Forfeited (in shares) | 0 |
Ending Balance (in shares) | 2.9 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ 25.92 |
Granted (in usd per share) | 0 |
Exercised (in usd per share) | 13.12 |
Forfeited (in usd per share) | 28.49 |
Ending Balance (in usd per share) | $ 26.46 |
Vested and Expected to Vest | |
Vested and expected to vest, awards (in shares) | 2.9 |
Vested and expected to vest, weighted average exercise price (in usd per share) | $ 26.46 |
Vested and expected to vest, aggregate intrinsic value | $ 4.7 |
Vested and expected to vest, weighted average contractual life (in years) | 5 years 10 days |
Exercisable | |
Exercisable, awards (in shares) | 2.3 |
Exercisable, weighted average exercise price (in usd per share) | $ 26.21 |
Exercisable, aggregate intrinsic value | $ 4.7 |
Exercisable, weighted average contractual life (in years) | 4 years 3 months 21 days |
Stock-based Compensation - Sc_2
Stock-based Compensation - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock and Restricted Stock Units shares in Millions | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Awards/Units (millions) | |
Beginning Balance (in shares) | shares | 1.2 |
Granted (in shares) | shares | 0.4 |
Vested (in shares) | shares | (0.5) |
Forfeited (in shares) | shares | (0.1) |
Ending Balance (in shares) | shares | 1 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 28.45 |
Granted (in usd per share) | $ / shares | 29.54 |
Vested (in usd per share) | $ / shares | 28.60 |
Forfeited (in usd per share) | $ / shares | 28.27 |
Ending Balance (in usd per share) | $ / shares | $ 28.89 |
Stock-based Compensation - Sc_3
Stock-based Compensation - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares shares in Millions | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Awards/Units (millions) | |
Beginning Balance (in shares) | shares | 0.5 |
Granted (in shares) | shares | 0.4 |
Vested (in shares) | shares | (0.1) |
Forfeited (in shares) | shares | (0.1) |
Ending Balance (in shares) | shares | 0.7 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 32.11 |
Granted (in usd per share) | $ / shares | 31.88 |
Vested (in usd per share) | $ / shares | 38.11 |
Forfeited (in usd per share) | $ / shares | 32.90 |
Ending Balance (in usd per share) | $ / shares | $ 31.14 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Other Non-operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange losses, net | $ 5.5 | $ 0.7 | $ 7.5 | $ 5.3 |
Debt extinguishment and refinancing related costs | 0 | 0 | 2.4 | 0.2 |
Other miscellaneous income, net | (3.2) | (2.6) | (9) | (9.3) |
Total | $ 2.3 | $ (1.9) | $ 0.9 | $ (3.8) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective Tax Rate | (78.30%) | 19.30% | ||
Tax Benefit on step-up value | $ 50.5 | |||
income tax settlement [Line Items] | ||||
Income Tax settlement | $ 17.1 | $ 18.3 | (22.7) | $ 50.4 |
Settlement with Taxing Authority | ||||
income tax settlement [Line Items] | ||||
Income Tax settlement | $ 14.3 |
Net (Loss) Income Per Common _2
Net (Loss) Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income to common shareholders | $ 82.5 | $ 65.5 | $ 51.9 | $ 207.3 |
Basic weighted average shares outstanding (in shares) | 235.3 | 233.9 | 235.1 | 233.8 |
Diluted weighted average shares outstanding (in shares) | 236 | 235.5 | 235.9 | 235.8 |
Net income per common share: | ||||
Basic net income per share (in dollars per share) | $ 0.35 | $ 0.28 | $ 0.22 | $ 0.89 |
Diluted net income per share (in dollars per share) | $ 0.35 | $ 0.28 | $ 0.22 | $ 0.88 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.8 | 2.4 | 2.9 | 2.8 |
Accounts and Notes Receivable_3
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable - trade, net | $ 715.9 | $ 718.4 |
Notes receivable | 20.2 | 24.7 |
Other | 88.1 | 87 |
Total | 824.2 | 830.1 |
Allowance for doubtful accounts | $ 27.2 | $ 16 |
Accounts and Notes Receivable_4
Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Receivables [Abstract] | ||||
Bad debt expense net of recoveries | $ 2.4 | $ 1.1 | $ 12.8 | $ 3.7 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 299.5 | $ 327.4 |
Semi-finished products | 90.9 | 109.9 |
Raw materials | 125.7 | 133.7 |
Stores and supplies | 20.6 | 20.6 |
Total Inventories | $ 536.7 | $ 591.6 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory reserves | $ 19.2 | $ 13.1 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 2,227.6 | $ 2,231.9 |
Accumulated depreciation | (1,062.4) | (1,008.9) |
Property, plant, and equipment, net | $ 1,165.2 | $ 1,223 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 31.1 | $ 40.2 | $ 104.4 | $ 129.3 |
Borrowings - Schedule of Debt (
Borrowings - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jan. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Short-term and other borrowings | $ 114.2 | $ 109 | |
Unamortized original issue discount | (7.9) | (10.5) | |
Unamortized deferred financing costs | (33.2) | (31.1) | |
Total borrowings, net | 4,059.6 | 3,834.1 | |
Short-term borrowings | 24.4 | 19.6 | |
Current portion of long-term borrowings | 24.3 | 24.3 | |
Long-term debt | 4,010.9 | 3,790.2 | |
2024 Dollar Term Loans | |||
Debt Instrument [Line Items] | |||
Term loan | 2,069.3 | 2,387.5 | |
2024 Dollar Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | 500 | 500 | |
2024 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | 391.4 | 375.2 | |
Unamortized original issue discount | $ (1.2) | ||
2025 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | 525.8 | 504 | |
2027 Dollar Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 500 | $ 0 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Unamortized original issue discount | $ 7,900,000 | $ 10,500,000 | ||
2024 Euro Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repurchased face amount | $ 300,000,000 | |||
Loss on extinguishment of debt | 2,700,000 | |||
Write off of deferred debt issuance cost | 1,500,000 | |||
Unamortized original issue discount | $ 1,200,000 | |||
2027 Dollar Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount issued | $ 500,000,000 | |||
Senior note stated interest rate | 4.75% | |||
Debt issuance costs | $ 8,300,000 | |||
Percent of principal required to be outstanding | 50.00% | |||
Redemption price, percentage if change in control occurs | 101.00% | |||
2027 Dollar Senior Notes | Present through June 15, 2023 | ||||
Debt Instrument [Line Items] | ||||
Aggregate percentage of principal amount redeemed | 40.00% | |||
Redemption price | 104.75% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 34,000,000 | 38,800,000 | ||
Line of credit facility, remaining borrowing capacity | $ 366,000,000 | $ 361,200,000 |
Borrowings - Senior Notes (Deta
Borrowings - Senior Notes (Details) - 2027 Dollar Senior Notes | 9 Months Ended |
Sep. 30, 2020 | |
2023 | |
Debt Instrument [Line Items] | |
Redemption price | 102.375% |
2024 | |
Debt Instrument [Line Items] | |
Redemption price | 101.188% |
2025 and thereafter | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Remainder of 2020 | $ 17.8 | |
2021 | 36.8 | |
2022 | 54.2 | |
2023 | 27.2 | |
2024 | 2,884.7 | |
Thereafter | 1,080 | |
Total borrowings | 4,100.7 | |
Unamortized original issue discount | (7.9) | $ (10.5) |
Unamortized deferred financing costs | (33.2) | (31.1) |
Total borrowings, net | $ 4,059.6 | $ 3,834.1 |
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, 2020 | Dec. 31, 2019 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | $ 0.7 | $ 0.6 |
Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 2,033.7 | 2,396.5 |
Long-term borrowings | 2024 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 512.6 | 520.2 |
Long-term borrowings | 2024 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 395.8 | 388.2 |
Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 529.7 | 520.7 |
Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 515.7 | 0 |
Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 14.3 | 14.4 |
Cross-currency swaps | Other assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 8 |
Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0.4 | 0 |
Foreign currency forward contracts | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0.1 | 0 |
Interest rate caps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 2 | 1.3 |
Interest rate caps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0.5 | 1.2 |
Interest rate swaps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 28.6 | 8.9 |
Interest rate swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 37.3 | 20.5 |
Fair Value, Inputs, Level 1 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0.7 | 0.6 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2024 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2024 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 1 | Cross-currency swaps | Other assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 1 | Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Foreign currency forward contracts | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate caps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate caps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate swaps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 2 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0 | 0 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 2,033.7 | 2,396.5 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2024 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 512.6 | 520.2 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2024 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 395.8 | 388.2 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 529.7 | 520.7 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 515.7 | 0 |
Fair Value, Inputs, Level 2 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 14.3 | 14.4 |
Fair Value, Inputs, Level 2 | Cross-currency swaps | Other assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 8 |
Fair Value, Inputs, Level 2 | Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0.4 | 0 |
Fair Value, Inputs, Level 2 | Foreign currency forward contracts | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0.1 | 0 |
Fair Value, Inputs, Level 2 | Interest rate caps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 2 | 1.3 |
Fair Value, Inputs, Level 2 | Interest rate caps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0.5 | 1.2 |
Fair Value, Inputs, Level 2 | Interest rate swaps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 28.6 | 8.9 |
Fair Value, Inputs, Level 2 | Interest rate swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 37.3 | 20.5 |
Fair Value, Inputs, Level 3 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2024 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2024 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 3 | Cross-currency swaps | Other assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 3 | Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign currency forward contracts | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate caps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate caps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate swaps | Other accrued liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 0 | $ 0 |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements - Additional Information (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($)interest_rate_swap | |
Derivatives, Fair Value [Line Items] | ||
Cash flow hedge loss to be reclassified within twelve months | $ 32.5 | |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Number of interest rate swaps | interest_rate_swap | 2 | |
Derivative, notional amount | $ 400 | |
Interest rate swaps | Interest Rate Swap 1 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 200 | |
Derivative, fixed interest rate | 1.61% | |
Interest rate swaps | Interest Rate Swap 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 200 | |
Derivative, fixed interest rate | 1.18% | |
Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 5 |
Financial Instruments, Hedgin_5
Financial Instruments, Hedging Activities and Fair Value Measurements - Accumulated Other Comprehensive (Loss) Income (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total AOCI | $ 10.5 | $ 55.3 | |
Cash flow hedging | Interest rate caps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total AOCI | 3.2 | $ 3.5 | |
Cash flow hedging | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total AOCI | 29.4 | 65.9 | |
Cash flow hedging | Foreign currency forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total AOCI | 0 | 0.1 | |
Net investment hedging | Cross-currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total AOCI | $ (22.4) | $ (13.9) |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of Loss Recognized in OCI on Derivatives | $ 7 | $ (4.6) | $ (36.3) | $ (39.5) |
Interest rate caps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of Loss Recognized in OCI on Derivatives | 0.1 | 0.3 | 1.2 | 6.2 |
Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of Loss Recognized in OCI on Derivatives | 0.4 | 4.8 | 48 | 32.4 |
Foreign currency forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of Loss Recognized in OCI on Derivatives | 0.1 | 0 | ||
Cross-currency swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of Loss Recognized in OCI on Derivatives, Cross-currency swaps | 16.9 | (24.2) | (2.5) | (39.1) |
Interest expense | Interest rate caps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of Loss (Gain) Recognized in Income | 0.6 | 0.1 | 1.5 | (1.5) |
Interest expense | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of Loss (Gain) Recognized in Income | 7 | 0.4 | 11.5 | 0.5 |
Interest expense | Foreign currency forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (4.4) | 2.3 | (5.3) | 4.1 |
Interest expense | Cross-currency swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of Loss (Gain) Recognized in Income, Cross-currency swaps | (3.6) | (3.8) | (11) | (11) |
Cost of goods sold | Foreign currency forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net Amount of Loss Recognized in OCI on Derivatives | 0.1 | 0 | ||
Amount of Loss (Gain) Recognized in Income | $ 0 | $ 0 | $ 0 | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,026,900,000 | $ 1,107,000,000 | $ 2,663,100,000 | $ 3,383,800,000 | |
Equity in earnings in unconsolidated affiliates | (100,000) | 100,000 | (200,000) | 300,000 | |
Investment in unconsolidated affiliates | 10,300,000 | 10,300,000 | $ 15,100,000 | ||
Intercompany sales between segments | 0 | ||||
Performance Coatings | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 682,700,000 | 723,700,000 | 1,812,500,000 | 2,193,700,000 | |
Equity in earnings in unconsolidated affiliates | 100,000 | 200,000 | 100,000 | 400,000 | |
Investment in unconsolidated affiliates | 2,100,000 | 2,100,000 | 2,400,000 | ||
Transportation Coatings | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 344,200,000 | 383,300,000 | 850,600,000 | 1,190,100,000 | |
Equity in earnings in unconsolidated affiliates | (200,000) | (100,000) | (300,000) | (100,000) | |
Investment in unconsolidated affiliates | 8,200,000 | 8,200,000 | $ 12,700,000 | ||
Refinish | Performance Coatings | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 401,700,000 | 441,500,000 | 1,031,400,000 | 1,294,300,000 | |
Industrial | Performance Coatings | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 281,000,000 | 282,200,000 | 781,100,000 | 899,400,000 | |
Light Vehicle | Transportation Coatings | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 276,300,000 | 295,700,000 | 662,700,000 | 917,700,000 | |
Commercial Vehicle | Transportation Coatings | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 67,900,000 | $ 87,600,000 | $ 187,900,000 | $ 272,400,000 |
Segments - Reconciliation of Op
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted EBIT | $ 182.4 | $ 162.1 | $ 249.8 | $ 442.9 |
Interest expense, net | 39.8 | 40.2 | 112.4 | 122.5 |
Debt extinguishment and refinancing related costs | 0 | 0 | 2.4 | 0.2 |
Termination benefits and other employee related costs | 35.7 | 29.2 | 70.4 | 33.3 |
Strategic review and retention costs | 6.9 | 3 | 25.1 | 3.8 |
Offering and transactional costs | 0.1 | 0.1 | 0.3 | 0.9 |
Loss (gain) on divestiture and impairments | 0.3 | (0.5) | 3.5 | 3.4 |
Pension special events | (0.7) | 0 | (2.5) | 0 |
Accelerated depreciation | 0.4 | 5.4 | 8.9 | 18.2 |
Indemnity loss (income) | 0.3 | 0 | 0.3 | (0.2) |
Income before income taxes | 99.6 | 84.7 | 29 | 260.8 |
Performance Coatings | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted EBIT | 133.9 | 124.9 | 214.8 | 331.1 |
Transportation Coatings | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted EBIT | $ 48.5 | $ 37.2 | $ 35 | $ 111.8 |
Minimum | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Retention payment terms | 18 months | |||
Maximum | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Retention payment terms | 24 months |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
AOCI, beginning balance | $ (395.5) | |||||
AOCI, ending balance | $ (470.2) | |||||
Unrealized Currency Translation Adjustments | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
AOCI, beginning balance | (374.2) | $ (380.3) | (297) | $ (286.6) | $ (299.4) | $ (299.4) |
Current year deferrals to AOCI | 33.9 | 6.1 | (83.3) | (5.7) | 12.8 | (52.2) |
Reclassifications from AOCI to Net income | 0 | 0 | 0 | 2.6 | 0 | 0 |
Net Change | 33.9 | 6.1 | (83.3) | (3.1) | 12.8 | (52.2) |
AOCI, ending balance | (340.3) | (374.2) | (380.3) | (289.7) | (286.6) | (341.9) |
Pension Adjustments | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
AOCI, beginning balance | (69.9) | (70.3) | (69.9) | (36.4) | (36.4) | (36.4) |
Current year deferrals to AOCI | (0.2) | 0 | 0 | (0.1) | 0 | 0 |
Reclassifications from AOCI to Net income | (0.3) | 0.4 | (0.4) | 0.5 | 0 | 0.3 |
Net Change | (0.5) | 0.4 | (0.4) | 0.4 | 0 | 0.3 |
AOCI, ending balance | (70.4) | (69.9) | (70.3) | (36) | (36.4) | (35.7) |
Unrealized (Loss) Gain on Derivatives | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
AOCI, beginning balance | (65.5) | (63.3) | (28.6) | (12.7) | (0.3) | (0.3) |
Current year deferrals to AOCI | (0.5) | (5.2) | (36.3) | (17.3) | (11.4) | (4.4) |
Reclassifications from AOCI to Net income | 6.5 | 3 | 1.6 | (0.3) | (1) | 0.5 |
Net Change | 6 | (2.2) | (34.7) | (17.6) | (12.4) | (3.9) |
AOCI, ending balance | (59.5) | (65.5) | (63.3) | (30.3) | (12.7) | (34.2) |
Accumulated Other Comprehensive (Loss) Income | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
AOCI, beginning balance | (509.6) | (513.9) | (395.5) | (335.7) | (336.1) | (336.1) |
Current year deferrals to AOCI | 33.2 | 0.9 | (119.6) | (23.1) | 1.4 | (56.6) |
Reclassifications from AOCI to Net income | 6.2 | 3.4 | 1.2 | 2.8 | (1) | 0.8 |
Net Change | 39.4 | 4.3 | (118.4) | (20.3) | 0.4 | (55.8) |
AOCI, ending balance | $ (470.2) | $ (509.6) | $ (513.9) | $ (356) | $ (335.7) | $ (411.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | |||
Curtailment gain (loss) | $ 1.3 | $ 3.1 | |
Cumulative income tax expense (benefit) on pension and postretirement benefit plans | 27 | 27 | $ 14.1 |
Cumulative income tax expense (benefit) on derivatives | $ 9.7 | $ 9.7 | $ 5.1 |
Uncategorized Items - axta-2020
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,500,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (700,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,700,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,700,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,500,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (700,000) |