Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 19, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 50 Applied Bank Blvd | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Glen Mills | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19342 | |
City Area Code | 855 | |
Local Phone Number | 547-1461 | |
Title of 12(b) Security | Common Shares, $1.00 par value | |
Trading Symbol | AXTA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 221,467,603 | |
Entity Central Index Key | 0001616862 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 1,174.1 | $ 1,063.6 |
Cost of goods sold | 837.4 | 684.5 |
Selling, general and administrative expenses | 193.5 | 179.1 |
Other operating charges | 7.7 | 102.8 |
Research and development expenses | 16.4 | 15.6 |
Amortization of acquired intangibles | 32.8 | 29 |
Income from operations | 86.3 | 52.6 |
Interest expense, net | 32.6 | 33.5 |
Other expense (income), net | 1.8 | (0.4) |
Income before income taxes | 51.9 | 19.5 |
Provision for income taxes | 11 | 3.8 |
Net income | 40.9 | 15.7 |
Less: Net (loss) income attributable to noncontrolling interests | (0.6) | 0.5 |
Net income attributable to controlling interests | $ 41.5 | $ 15.2 |
Basic net income per share (in dollars per share) | $ 0.18 | $ 0.06 |
Diluted net income per share (in dollars per share) | $ 0.18 | $ 0.06 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 40.9 | $ 15.7 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | (3.9) | (37.6) |
Unrealized gain on derivatives | 19.5 | 9.2 |
Unrealized gain on pension and other benefit plan obligations | 0.9 | 1.2 |
Other comprehensive income (loss), before tax | 16.5 | (27.2) |
Income tax provision related to items of other comprehensive income (loss) | 3 | 1.8 |
Other comprehensive income (loss), net of tax | 13.5 | (29) |
Total comprehensive income | 54.4 | (13.3) |
Less: Comprehensive (loss) income attributable to noncontrolling interests | (0.1) | 0.3 |
Comprehensive income (loss) attributable to controlling interests | $ 54.5 | $ (13.6) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 576.2 | $ 840.6 |
Restricted cash | 10.6 | 10.6 |
Accounts and notes receivable, net | 1,029.8 | 937.5 |
Inventories | 764 | 669.7 |
Prepaid expenses and other current assets | 135.7 | 117.2 |
Total current assets | 2,516.3 | 2,575.6 |
Property, plant and equipment, net | 1,184.4 | 1,186.2 |
Goodwill | 1,574.4 | 1,592.7 |
Identifiable intangibles, net | 1,237.5 | 1,278.2 |
Other assets | 568.9 | 584.5 |
Total assets | 7,081.5 | 7,217.2 |
Current liabilities: | ||
Accounts payable | 748 | 657.4 |
Current portion of borrowings | 76.1 | 79.7 |
Other accrued liabilities | 520.9 | 597.8 |
Total current liabilities | 1,345 | 1,334.9 |
Long-term borrowings | 3,739.2 | 3,749.9 |
Accrued pensions | 261.4 | 269.3 |
Deferred income taxes | 165.5 | 174.7 |
Other liabilities | 149.2 | 149.7 |
Total liabilities | 5,660.3 | 5,678.5 |
Commitments and contingent liabilities (Note 6) | ||
Shareholders’ equity: | ||
Common shares, $1.00 par, 1,000.0 shares authorized, 252.2 and 251.8 shares issued at March 31, 2022 and December 31, 2021, respectively | 252.2 | 251.8 |
Capital in excess of par | 1,518.2 | 1,515.5 |
Retained earnings | 868.7 | 827.2 |
Treasury shares, at cost, 30.8 and 24.4 shares at March 31, 2022 and December 31, 2021, respectively | (862.3) | (687.2) |
Accumulated other comprehensive loss | (401.4) | (414.4) |
Total Axalta shareholders’ equity | 1,375.4 | 1,492.9 |
Noncontrolling interests | 45.8 | 45.8 |
Total shareholders’ equity | 1,421.2 | 1,538.7 |
Total liabilities and shareholders’ equity | $ 7,081.5 | $ 7,217.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common shares authorized (in shares) | 1,000 | 1,000 |
Common shares issued (in shares) | 252.2 | 251.8 |
Treasury shares, at cost (in shares) | 30.8 | 24.4 |
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, 2020 | 234.8 | ||||||
Beginning balance at Dec. 31, 2020 | $ 1,479.8 | $ 250.9 | $ 1,487.1 | $ 563.3 | $ (443.5) | $ (424.8) | $ 46.8 |
Comprehensive income: | |||||||
Net income | 15.7 | 15.2 | 0.5 | ||||
Net realized and unrealized gain (loss) on derivatives, net of tax | 7.9 | 7.9 | |||||
Long-term employee benefit plans, net of tax | 0.7 | 0.7 | |||||
Foreign currency translation, net of tax | (37.6) | (37.4) | (0.2) | ||||
Total comprehensive income | (13.3) | 15.2 | (28.8) | 0.3 | |||
Recognition of stock-based compensation | 3.6 | 3.6 | |||||
Shares issued under compensation plans (in shares) | 0.3 | ||||||
Shares issued under compensation plans | 0.1 | $ 0.3 | (0.2) | ||||
Common stock purchases (in shares) | (2.3) | ||||||
Common stock purchases | (63.7) | (63.7) | |||||
Dividends declared to noncontrolling interests | (0.7) | (0.7) | |||||
Ending balance (in shares) at Mar. 31, 2021 | 232.8 | ||||||
Ending balance at Mar. 31, 2021 | 1,405.8 | $ 251.2 | 1,490.5 | 578.5 | (507.2) | (453.6) | 46.4 |
Beginning balance (in shares) at Dec. 31, 2021 | 227.4 | ||||||
Beginning balance at Dec. 31, 2021 | 1,538.7 | $ 251.8 | 1,515.5 | 827.2 | (687.2) | (414.4) | 45.8 |
Comprehensive income: | |||||||
Net income | 40.9 | 41.5 | (0.6) | ||||
Net realized and unrealized gain (loss) on derivatives, net of tax | 16.9 | 16.9 | |||||
Long-term employee benefit plans, net of tax | 0.5 | 0.5 | |||||
Foreign currency translation, net of tax | (3.9) | (4.4) | 0.5 | ||||
Total comprehensive income | 54.4 | 41.5 | 13 | (0.1) | |||
Recognition of stock-based compensation | $ 5.3 | 5.3 | |||||
Shares issued under compensation plans (in shares) | 0 | 0.4 | |||||
Shares issued under compensation plans | $ (1.9) | $ 0.4 | (2.3) | ||||
Changes in ownership of noncontrolling interests | (0.1) | (0.3) | 0.2 | ||||
Common stock purchases (in shares) | (6.4) | ||||||
Common stock purchases | (175.1) | (175.1) | |||||
Dividends declared to noncontrolling interests | (0.1) | (0.1) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 221.4 | ||||||
Ending balance at Mar. 31, 2022 | $ 1,421.2 | $ 252.2 | $ 1,518.2 | $ 868.7 | $ (862.3) | $ (401.4) | $ 45.8 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Gain on derivatives, tax (benefit) expense | $ 2.6 | $ 1.3 |
Long-term employee benefit plans, net of tax expense (benefit) | 0.4 | 0.5 |
Foreign currency translation, tax expense | $ 0 | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Operating activities: | |||
Net income | $ 40.9 | $ 15.7 | |
Adjustment to reconcile net income to cash (used for) provided by operating activities: | |||
Depreciation and amortization | 77.7 | 76.4 | |
Amortization of deferred financing costs and original issue discount | 2.4 | 2.2 | |
Deferred income taxes | (2.7) | (18.3) | |
Realized and unrealized foreign exchange losses, net | 2.4 | 8.6 | |
Stock-based compensation | 5.3 | 3.6 | |
Interest income on swaps designated as net investment hedges | (6.2) | (3.5) | |
Other non-cash, net | (1.6) | 1.4 | |
Changes in operating assets and liabilities: | |||
Trade accounts and notes receivable | (86.2) | (52.6) | |
Inventories | (91.5) | (36.2) | |
Prepaid expenses and other assets | (32.9) | (18) | |
Accounts payable | 120.4 | 33.4 | |
Other accrued liabilities | (66.7) | 30.7 | |
Other liabilities | (5.2) | (3.8) | |
Cash (used for) provided by operating activities | (43.9) | 39.6 | |
Investing activities: | |||
Purchase of property, plant and equipment | (42.5) | (31.8) | |
Interest proceeds on swaps designated as net investment hedges | 6.2 | 3.5 | |
Settlement proceeds on swaps designated as net investment hedges | 25 | 0 | |
Other investing activities, net | 1 | 0.5 | |
Cash used for investing activities | (10.3) | (27.8) | |
Financing activities: | |||
Payments on short-term borrowings | (24.1) | (20) | |
Payments on long-term borrowings | (6.8) | (6.7) | |
Financing-related costs | 0 | (1.5) | |
Purchases of common stock | (175.1) | (63.7) | |
Net cash flows associated with stock-based awards | (1.9) | ||
Net cash flows associated with stock-based awards | 0.1 | ||
Other financing activities, net | (0.2) | (0.7) | |
Cash used for financing activities | (208.1) | (92.5) | |
Decrease in cash | (262.3) | (80.7) | |
Effect of exchange rate changes on cash | (2.1) | (13.5) | |
Cash at beginning of period | 851.2 | 1,364 | $ 1,364 |
Cash at end of period | 586.8 | 1,269.8 | 851.2 |
Cash at end of period reconciliation: | |||
Cash and cash equivalents | 576.2 | 1,266.9 | 840.6 |
Restricted cash | 10.6 | 2.9 | 10.6 |
Cash at end of period | $ 586.8 | $ 1,269.8 | $ 851.2 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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 and shareholders' equity of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at March 31, 2022, the results of operations, comprehensive income (loss), changes in shareholders' equity and cash flows for the three months ended March 31, 2022 and 2021. 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, 2021. 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 entities are accounted for on a one-month lag basis, the effect of which is not material. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for a full year. Risks and Uncertainties |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 were $37.7 million and $36.1 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 March 31, 2022 and December 31, 2021, the total carrying value of BIPs were $149.3 million and $151.2 million, respectively, and are presented within other assets in the condensed consolidated balance sheets. For the three months ended March 31, 2022 and 2021, $14.5 million and $15.3 million, respectively, was amortized and reflected as reductions of net sales in the condensed consolidated statements of operations. The total carrying value of BIPs exclude other up-front incentives with repayment features made in conjunction with long-term customer commitments of $69.7 million and $72.7 million at March 31, 2022 and December 31, 2021, respectively. These up-front incentives with repayment features are subject to the credit risk of our customers and depending on the financial condition of our customers, it is possible that some or all of the amounts may become uncollectible. We have no reserve for this risk at March 31, 2022 or December 31, 2021. See Note 17 for disaggregated net sales by end-market. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of U-POL Holdings Limited On September 15, 2021, we completed the acquisition of U-POL Holdings Limited ("U-POL") for an aggregate purchase price of $619.8 million. The acquisition of U-POL, a leading supplier of paint, protective coatings and accessories primarily for the automotive aftermarket, strengthens Axalta's global refinish leadership position and supports its broader growth strategy. The results of the business are reported within our Performance Coatings segment. The U-POL acquisition was recorded as a business combination under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 805, Business Combinations , with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date. At March 31, 2022, we have not finalized the purchase accounting related to the U-POL acquisition and these amounts represent preliminary values. The allocation of the purchase price may be modified up to one year from the closing date of the acquisition as more information is obtained about the fair value of assets acquired and liabilities assumed. The purchase price was allocated as follows: September 15, 2021 (As initially reported) Measurement Period Adjustments September 15, 2021 (Adjusted) Cash $ 23.7 $ — $ 23.7 Accounts and notes receivable, net 22.5 — 22.5 Inventories 23.3 — 23.3 Prepaid expenses and other current assets, net 3.2 — 3.2 Property, plant and equipment, net 16.5 (1.5) 15.0 Identifiable intangible assets 273.0 1.0 274.0 Other assets 2.0 0.1 2.1 Accounts payable (20.9) — (20.9) Other accrued liabilities (3.9) (0.3) (4.2) Other liabilities (0.9) — (0.9) Deferred income taxes (68.4) (0.9) (69.3) Net assets before goodwill from acquisition 270.1 (1.6) 268.5 Goodwill from acquisition 349.7 1.6 351.3 Net assets acquired $ 619.8 $ — $ 619.8 |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS As of March 31, 2022, we have not yet finalized the purchase accounting related to acquisitions completed after March 31, 2021 and the amounts recorded represent preliminary values. During the three months ended March 31, 2022, we made purchase accounting adjustments impacting goodwill, deferred income taxes and property, plant and equipment. We expect to finalize our purchase accounting during the measurement period which will be no later than one year following the acquisition date. Goodwill The following table shows changes in the carrying amount of goodwill from December 31, 2021 to March 31, 2022 by reportable segment: Performance Mobility Total Balance at December 31, 2021 $ 1,513.4 $ 79.3 $ 1,592.7 Purchase accounting adjustments 1.8 — 1.8 Foreign currency translation (19.4) (0.7) (20.1) Balance at March 31, 2022 $ 1,495.8 $ 78.6 $ 1,574.4 Identifiable Intangible Assets The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class: March 31, 2022 Gross Carrying Accumulated Net Book Weighted average Technology $ 570.7 $ (431.9) $ 138.8 10.2 Trademarks—indefinite-lived 264.1 — 264.1 Indefinite Trademarks—definite-lived 132.8 (46.0) 86.8 14.4 Customer relationships 1,129.2 (381.9) 747.3 19.2 Other 14.1 (13.6) 0.5 5.0 Total $ 2,110.9 $ (873.4) $ 1,237.5 December 31, 2021 Gross Carrying Accumulated Net Book Weighted average Technology $ 575.3 $ (420.9) $ 154.4 10.2 Trademarks—indefinite-lived 266.7 — 266.7 Indefinite Trademarks—definite-lived 134.5 (43.8) 90.7 14.4 Customer relationships 1,131.8 (366.6) 765.2 19.2 Other 14.5 (13.3) 1.2 5.0 Total $ 2,122.8 $ (844.6) $ 1,278.2 The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2022 and each of the succeeding five years is: Remainder of 2022 $ 96.2 2023 89.6 2024 84.8 2025 84.2 2026 83.7 2027 82.6 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In accordance with the applicable guidance for ASC 712, Nonretirement Postemployment Benefits , we accounted for termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated. During the three months ended March 31, 2022 and 2021, we incurred costs for termination benefits of $2.4 million and $4.5 million, respectively. The majority of our termination benefits 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 activity related to termination benefit reserves and expenses from December 31, 2021 to March 31, 2022: 2022 Activity Balance at December 31, 2021 $ 57.5 Expenses, net of changes to estimates 2.4 Payments made (15.0) Foreign currency translation (0.5) Balance at March 31, 2022 $ 44.4 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021, we had outstanding bank guarantees of $5.1 million and $5.7 million, respectively. A portion of our bank guarantees expire between 2022 and 2036, while others do not have specified expiration dates. We monitor the customer obligations and bank guarantees to evaluate whether we have a liability at the balance sheet date. We did not have any liabilities related to our outstanding bank guarantees recorded at March 31, 2022 and December 31, 2021. Operational Matter In January 2021, we became aware of an operational matter affecting certain North America Mobility Coatings customer manufacturing sites. The matter involves the use and application of certain of our products in combination with and incorporated within third-party products. The matter occurred over a discrete period during the fourth quarter of 2020. We have concluded that losses from this matter are probable and that a majority of losses would be covered under our insurance policies, subject to deductible and policy limits as defined in our policies. For the three months ended March 31, 2022 and March 31, 2021 , we recorded expenses of $0.1 million and $94.4 million, respectively, within other operating charges in the condensed consolidated statements of operations. At March 31, 2022 and December 31, 2021, we had $38.2 million and $52.7 million, respectively, recorded for estimated insurance receivables within accounts and notes receivable, net in the condensed consolidated balance sheets . Liabilities of $48.6 million and $49.7 million are recorded as other accrued liabilities in the condensed consolidated balance sheets at March 31, 2022 and December 31, 2021, respectively . The recorded probable losses remain an estimate and actual costs arising from this matter could be materially lower or higher depending on the actual costs incurred to repair the impacted products as well as the availability of additional insurance coverage. 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 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. Except as set forth in the "Operational Matter" section above, 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 costs for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 1.7 $ 1.8 Interest cost 2.4 2.0 Expected return on plan assets (3.2) (3.4) Amortization of actuarial losses, net 0.9 1.2 Net periodic benefit cost $ 1.8 $ 1.6 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 | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION During the three months ended March 31, 2022 and 2021, we recognized expenses of $5.3 million and $3.6 million, respectively, in stock-based compensation, which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized tax benefits on stock-based compensation of $0.6 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively. 2022 Activity A summary of award activity by type for the three months ended March 31, 2022 is presented below. Stock Options Awards Weighted- Aggregate Weighted Outstanding at January 1, 2022 1.4 $ 26.30 Granted — $ — Exercised — $ — Forfeited / Expired — $ — Outstanding at March 31, 2022 1.4 $ 26.30 Vested and expected to vest at March 31, 2022 1.4 $ 26.30 $ 2.5 4.36 Exercisable at March 31, 2022 1.4 $ 26.30 $ 2.5 4.30 At March 31, 2022, there was an immaterial amount of unrecognized expense relating to unvested stock options that is expected to be amortized over the weighted average period of 0.2 years. Restricted Stock Units Units Weighted-Average Outstanding at January 1, 2022 1.1 $ 28.85 Granted 0.6 $ 28.87 Vested (0.4) $ 28.43 Forfeited (1) — $ 28.78 Outstanding at March 31, 2022 1.3 $ 29.00 (1) Activity during the three months ended March 31, 2022 rounds to zero. Tax shortfall expenses on the vesting of restricted stock awards and restricted stock units during the three months ended March 31, 2022 was $0.1 million. At March 31, 2022, there was $25.7 million of unamortized expense relating to unvested restricted stock units that is expected to be amortized over a weighted average period of 1.7 years. Performance Share Units Units Weighted-Average Outstanding at January 1, 2022 0.8 $ 30.10 Granted 0.4 $ 30.61 Vested (0.1) $ 29.12 Forfeited (0.2) $ 29.61 Outstanding at March 31, 2022 0.9 $ 30.46 Our performance share units allow for participants to vest in more or less than the targeted number of shares granted. Some of our performance share units are performing at the applicable target while others are currently performing below the applicable targets. We currently expect a total of 0.5 million shares with a weighted average fair value per share of $30.30 to vest at the respective vesting dates for such awards. At March 31, 2022, there is $14.4 million of unamortized expense relating to unvested performance share units that is expected to be amortized over a weighted average period of 2.7 years. The forfeitures include performance share units that vested below threshold payout. |
Other Expense (Income), Net
Other Expense (Income), Net | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net | OTHER EXPENSE (INCOME), NET Three Months Ended March 31, 2022 2021 Foreign exchange losses, net $ 2.6 $ 1.8 Other miscellaneous income, net (0.8) (2.2) Total $ 1.8 $ (0.4) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rates for the three months ended March 31, 2022 and 2021 are as follows: Three Months Ended March 31, 2022 2021 Effective Tax Rate 21.2 % 19.5 % The higher effective tax rate for the three months ended March 31, 2022 was primarily due to the unfavorable impact of net currency exchange losses in 2022. These adjustments are partially offset by the favorable impact of changes in valuation allowance and unrecognized tax benefits. The effective tax rate for the three months ended March 31, 2022 differs from the U.S. Federal statutory rate due to various items that impacted the effective rate both favorably and unfavorably. We recorded the unfavorable impact of net currency exchange losses, increase in valuation allowance and foreign taxes. These adjustments were offset by the favorable adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate and decrease in unrecognized tax benefits. The Company anticipates that it is reasonably possible it will settle up to $11.2 million, exclusive of interest and penalties, of its current unrecognized tax benefits within the next 12 months due to the expected conclusion of ongoing tax audits. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NET INCOME PER COMMON SHARE Basic net income per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the hypothetical exercise of outstanding stock options and vesting of restricted stock units and performance share units. A reconciliation of our basic and diluted net income per common share is as follows: Three Months Ended March 31, (In millions, except per share data) 2022 2021 Net income to common shareholders $ 41.5 $ 15.2 Basic weighted average shares outstanding 224.7 233.9 Diluted weighted average shares outstanding 225.2 234.7 Net income per common share: Basic net income per share $ 0.18 $ 0.06 Diluted net income per share $ 0.18 $ 0.06 The number of anti-dilutive shares that have been excluded in the computation of diluted net income per share for the three months ended March 31, 2022 and 2021 were 1.0 million and 1.5 million, respectively. |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 3 Months Ended |
Mar. 31, 2022 | |
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, changes in geopolitical matters, and changes in customer payment terms, including the ongoing impacts from COVID-19. March 31, 2022 December 31, 2021 Accounts receivable - trade, net (1) $ 854.0 $ 760.4 Notes receivable 25.3 24.7 Other (2) 150.5 152.4 Total $ 1,029.8 $ 937.5 (1) Allowance for doubtful accounts was $25.5 million and $22.0 million at March 31, 2022 and December 31, 2021, respectively. (2) Includes $38.2 million and $52.7 million at March 31, 2022 and December 31, 2021, respectively, of insurance recoveries related to the operational matter as discussed further in Note 6. Bad debt expense of $(0.5) million and $0.7 million was included within selling, general and administrative expenses for the three months ended March 31, 2022 and 2021, respectively, and an additional $4.1 million related to sanctions imposed on Russia in response to the conflict with Ukraine was included in other operating charges for the three months ended March 31, 2022. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES March 31, 2022 December 31, 2021 Finished products $ 416.9 $ 355.9 Semi-finished products 100.9 109.7 Raw materials 220.1 180.8 Stores and supplies 26.1 23.3 Total $ 764.0 $ 669.7 Inventory reserves were $17.1 million and $15.6 million at March 31, 2022 and December 31, 2021, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET March 31, 2022 December 31, 2021 Property, plant and equipment $ 2,333.1 $ 2,299.4 Accumulated depreciation (1,148.7) (1,113.2) Property, plant, and equipment, net $ 1,184.4 $ 1,186.2 Depreciation expense amounted to $30.1 million and $31.9 million for the three months ended March 31, 2022 and 2021, respectively. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Borrowings are summarized as follows: March 31, 2022 December 31, 2021 2024 Dollar Term Loans $ 2,032.8 $ 2,038.9 2025 Euro Senior Notes 501.8 508.8 2027 Dollar Senior Notes 500.0 500.0 2029 Dollar Senior Notes 700.0 700.0 Short-term and other borrowings 110.6 113.8 Unamortized original issue discount (4.1) (4.6) Unamortized deferred financing costs (25.8) (27.3) Total borrowings, net 3,815.3 3,829.6 Less: Short-term borrowings 51.8 55.4 Current portion of long-term borrowings 24.3 24.3 Long-term debt $ 3,739.2 $ 3,749.9 Revolving Credit Facility At March 31, 2022 and December 31, 2021, letters of credit issued under the Revolving Credit Facility totaled $22.1 million, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $527.9 million at March 31, 2022 and December 31, 2021. Supplier financing arrangements We have a financing program in China which is utilized to finance the purchases of goods and services from our suppliers through local banking institutions. The payment terms under the financing program vary, but the program has a weighted average maturity date that approximates 90 days. These financing arrangements are included in current portion of borrowings within the consolidated balance sheets and at the time of issuance each transaction is treated as a non-cash financing activity within the consolidated statements of cash flows. Upon settlement of the financing, the cash outflow is classified as a financing activity within the consolidated statements of cash flows. Amounts outstanding under this program were $21.2 million and $18.4 million at March 31, 2022 and March 31, 2021, respectively, including $4.2 million and $2.6 million, respectively, related to purchases of property, plant and equipment. Cash outflows under this program were $24.1 million and $13.7 million for the three months ended March 31, 2022 and March 31, 2021, respectively. Future repayments Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2022. Remainder of 2022 $ 68.1 2023 27.5 2024 1,993.5 2025 505.1 2026 3.6 Thereafter 1,247.4 Total borrowings 3,845.2 Unamortized original issue discount (4.1) Unamortized deferred financing costs (25.8) Total borrowings, net $ 3,815.3 |
Financial Instruments, Hedging
Financial Instruments, Hedging Activities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
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. Fair value of contingent consideration The fair value of contingent consideration associated with an acquisition completed in the year is valued at each balance sheet date, until amounts become payable, with adjustments recorded within other expense (income) in the condensed consolidated statements of operations. During April 2021, in conjunction with an acquisition in China, we recorded fair value of contingent consideration of $7.3 million. As of March 31, 2022, the contingent consideration had increased to $7.8 million as a result of accretion for the passage of time and currency translation. The contingent consideration was valued using a probability-weighted expected payment method. The analysis considered the timing of expected future cash flows and the probability of whether key elements of the contingent event are completed. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value 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 March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Prepaid expenses and other current assets: Interest rate swaps (1) $ — $ 0.7 $ — $ 0.7 $ — $ — $ — $ — Cross-currency swaps (2) — 18.6 — 18.6 — 17.7 — 17.7 Foreign currency forward contracts (1)(3) — — — — — — — — Other assets: Cross-currency swaps (2) — — — — — 8.3 — 8.3 Investments in equity securities 0.7 — — 0.7 0.7 — — 0.7 Liabilities: Other accrued liabilities: Interest rate swaps (1) — 7.5 — 7.5 — 24.3 — 24.3 Contingent consideration — — 7.8 7.8 — — 7.8 7.8 Other liabilities: Interest rate swaps (1) — — — — — 1.9 — 1.9 Cross-currency swaps (2) — 16.4 — 16.4 — — — — Long-term borrowings: 2024 Dollar Term Loans — 1,998.9 — 1,998.9 — 2,038.5 — 2,038.5 2025 Euro Senior Notes — 494.6 — 494.6 — 513.7 — 513.7 2027 Dollar Senior Notes — 480.9 — 480.9 — 522.9 — 522.9 2029 Dollar Senior Notes — 615.6 — 615.6 — 679.5 — 679.5 (1) Cash flow hedge (2) Net investment hedge (3) Balances at March 31, 2022 round to zero The table below presents a roll forward of activity for the Level 3 liabilities during the three months ended March 31, 2022. Fair Value Using Significant Unobservable Inputs Beginning balance December 31, 2021 $ 7.8 Change in fair value — Ending balance at March 31, 2022 $ 7.8 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. Certain derivative instruments in use are contingent upon changes in LIBOR, which is the subject of recent reform and will cease being published in June 2023. The derivative instruments under LIBOR terms that we are currently party to will either mature before June 2023 or the agreements contain transitional language to a different reference rate. Derivative Instruments Qualifying and Designated as Cash Flow and Net Investment Hedges Cross-Currency Swaps Designated as Net Investment Hedges During the three months ended March 31, 2022, we settled two fixed-for-fixed cross-currency swaps with an aggregate notional amount totaling €335.0 million previously executed in 2020 resulting in cash proceeds of $25.0 million. Concurrently, we entered into two fixed-for-fixed cross-currency swaps with an aggregate notional amount totaling €335.0 million to hedge the variability of exchange rate impacts between the U.S. Dollar and Euro. Under the terms of the new cross-currency swap agreements, the Company notionally exchanged $365.5 million at a weighted average interest rate of 3.375% for €335.0 million at a weighted average interest rate of 2.04%. The cross-currency swaps are designated as net investment hedges and expire on February 15, 2029. These cross-currency swaps are marked to market at each reporting date and any unrealized gains or losses are included in unrealized currency translation adjustments, within accumulated other comprehensive loss ("AOCI"). Foreign Currency Forward Contracts Designated as Cash Flow Hedges During the three months ended March 31, 2022, we designated foreign currency forward contracts with a notional value of $3.0 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 fair values of derivative instruments that qualify and have been designated as cash flow and net investment hedges included in AOCI: March 31, 2022 December 31, 2021 AOCI: Interest rate swaps (cash flow hedges) $ 6.8 $ 26.3 Foreign currency forward contracts (cash flow hedges) (1) — — Cross-currency swaps (net investment hedges) (26.8) (26.0) Total AOCI $ (20.0) $ 0.3 (1) Activity during the three months ended March 31, 2022 rounds to zero 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 months ended March 31, 2022 and 2021 for these cash flow and net investment hedges. For the Three Months Ended March 31, 2022 2021 Derivatives in Cash Flow and Net Investment Hedges Location of Loss (Gain) Recognized in Income on Derivatives Net Amount of (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Interest rate caps Interest expense, net $ — $ — $ — $ 0.6 Interest rate swaps Interest expense, net (12.4) 7.1 (1.5) 7.0 Foreign currency forward contracts (1) Cost of goods sold — — (0.1) — Cross-currency swaps Interest expense, net (5.6) (4.8) (29.6) (4.8) (1) Activity during the three months ended March 31, 2022 rounds to zero Over the next 12 months, we expect losses of $6.7 million pertaining to cash flow hedges to be reclassified from AOCI into earnings, related to our interest rate swaps and foreign currency forward contracts. Derivative Instruments Not Designated as Cash Flow Hedges We periodically enter into foreign currency forward and option contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other expense (income), net in the condensed consolidated statements of operations. Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows: Derivatives Not Designated as Hedging Location of Loss Recognized in Three Months Ended March 31, 2022 2021 Foreign currency forward contracts Other expense (income), net $ 0.3 $ (6.8) |
Segments
Segments | 3 Months Ended |
Mar. 31, 2022 | |
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 Mobility 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 Mobility Coatings segment, we provide coatings technologies while focusing on supporting the accelerating demand for e-mobility and the evolving coatings needs of established and emerging light and commercial vehicle OEMs, fleet owners and shared mobility providers. These global customers are faced with evolving megatrends in sustainability, personalization and autonomous driving that require a high level of technical support coupled with productive, 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 March 31, 2022 2021 Net sales (1) : Refinish $ 461.4 $ 399.0 Industrial 353.0 308.3 Total Net sales Performance Coatings 814.4 707.3 Light Vehicle 275.6 278.9 Commercial Vehicle 84.1 77.4 Total Net sales Mobility Coatings 359.7 356.3 Total Net sales $ 1,174.1 $ 1,063.6 Depreciation and amortization expense (2) : Performance Coatings $ 58.0 $ 54.0 Mobility Coatings 19.7 22.4 Total Depreciation and amortization expense $ 77.7 $ 76.4 (1) The Company has no intercompany sales between segments. (2) Depreciation and amortization expenses relating to assets used within the operations of a specifically identifiable segment are recorded to the appropriate segment, while depreciation and amortization expenses relating to assets shared in our integrated supply chain are allocated to the appropriate segments on a consistent basis reflecting their use. The following table reconciles our segment operating performance to income before income taxes for the periods presented: Three Months Ended March 31, 2022 2021 Segment Adjusted EBIT (1) : Performance Coatings $ 94.6 $ 117.2 Mobility Coatings 0.5 39.2 Total (2) 95.1 156.4 Interest expense, net 32.6 33.5 Termination benefits and other employee related costs (a) 2.4 2.8 Strategic review and retention costs (b) — 5.4 Acquisition and divestiture-related costs (c) 0.4 0.2 Impairment charges (d) 0.3 — Accelerated depreciation and site closure costs (e) 1.3 0.6 Indemnity loss (f) 0.3 — Operational matter (g) 0.1 94.4 Russia sanction-related impacts (h) 5.8 — Income before income taxes $ 51.9 $ 19.5 (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 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 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. (b) 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 were earned over a period of 18-24 months, which ended in September 2021. These amounts are not considered indicative of our ongoing performance. (c) Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. (d) Represents impairment charges, which are not considered indicative of our ongoing performance. (e) Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance. (f) Represents indemnity loss associated with acquisitions, which we do not consider indicative of our ongoing operating performance. (g) Represents expenses, changes in estimates and insurance recoveries for probable liabilities related to an operational matter in the Mobility Coatings segment discussed further in Note 6, which we do not consider indicative of our ongoing operating performance. (h) Represents expenses related to sanctions imposed on Russia in response to the conflict with Ukraine as a result of incremental reserves for accounts receivable and incremental inventory obsolescence, which we do not consider indicative of our ongoing operating performance. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Unrealized Pension Unrealized Accumulated Balance, December 31, 2021 $ (331.3) $ (60.4) $ (22.7) $ (414.4) Current year deferrals to AOCI 0.4 — 10.8 11.2 Reclassifications from AOCI to Net income (4.8) 0.5 6.1 1.8 Net Change (4.4) 0.5 16.9 13.0 Balance, March 31, 2022 $ (335.7) $ (59.9) $ (5.8) $ (401.4) The cumulative income tax benefit related to the adjustments for pension benefit at March 31, 2022 was $24.4 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at March 31, 2022 was $1.0 million. See Note 16 for classification within the consolidated statements of operations of the gains and losses on derivatives reclassified from AOCI. Unrealized Pension Unrealized Accumulated Balance, December 31, 2020 $ (282.0) $ (88.7) $ (54.1) $ (424.8) Current year deferrals to AOCI (32.6) — 1.3 (31.3) Reclassifications from AOCI to Net income (4.8) 0.7 6.6 2.5 Net Change (37.4) 0.7 7.9 (28.8) Balance, March 31, 2021 $ (319.4) $ (88.0) $ (46.2) $ (453.6) The cumulative income tax benefit related to the adjustments for pension benefits at March 31, 2021 was $33.0 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at March 31, 2021 was $7.5 million. See Note 16 for classification within the consolidated statements of operations of the gains and losses on derivatives reclassified from AOCI. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The purchase price was allocated as follows: September 15, 2021 (As initially reported) Measurement Period Adjustments September 15, 2021 (Adjusted) Cash $ 23.7 $ — $ 23.7 Accounts and notes receivable, net 22.5 — 22.5 Inventories 23.3 — 23.3 Prepaid expenses and other current assets, net 3.2 — 3.2 Property, plant and equipment, net 16.5 (1.5) 15.0 Identifiable intangible assets 273.0 1.0 274.0 Other assets 2.0 0.1 2.1 Accounts payable (20.9) — (20.9) Other accrued liabilities (3.9) (0.3) (4.2) Other liabilities (0.9) — (0.9) Deferred income taxes (68.4) (0.9) (69.3) Net assets before goodwill from acquisition 270.1 (1.6) 268.5 Goodwill from acquisition 349.7 1.6 351.3 Net assets acquired $ 619.8 $ — $ 619.8 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2021 to March 31, 2022 by reportable segment: Performance Mobility Total Balance at December 31, 2021 $ 1,513.4 $ 79.3 $ 1,592.7 Purchase accounting adjustments 1.8 — 1.8 Foreign currency translation (19.4) (0.7) (20.1) Balance at March 31, 2022 $ 1,495.8 $ 78.6 $ 1,574.4 |
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: March 31, 2022 Gross Carrying Accumulated Net Book Weighted average Technology $ 570.7 $ (431.9) $ 138.8 10.2 Trademarks—indefinite-lived 264.1 — 264.1 Indefinite Trademarks—definite-lived 132.8 (46.0) 86.8 14.4 Customer relationships 1,129.2 (381.9) 747.3 19.2 Other 14.1 (13.6) 0.5 5.0 Total $ 2,110.9 $ (873.4) $ 1,237.5 December 31, 2021 Gross Carrying Accumulated Net Book Weighted average Technology $ 575.3 $ (420.9) $ 154.4 10.2 Trademarks—indefinite-lived 266.7 — 266.7 Indefinite Trademarks—definite-lived 134.5 (43.8) 90.7 14.4 Customer relationships 1,131.8 (366.6) 765.2 19.2 Other 14.5 (13.3) 1.2 5.0 Total $ 2,122.8 $ (844.6) $ 1,278.2 |
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 2022 and each of the succeeding five years is: Remainder of 2022 $ 96.2 2023 89.6 2024 84.8 2025 84.2 2026 83.7 2027 82.6 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity related to termination benefit reserves and expenses from December 31, 2021 to March 31, 2022: 2022 Activity Balance at December 31, 2021 $ 57.5 Expenses, net of changes to estimates 2.4 Payments made (15.0) Foreign currency translation (0.5) Balance at March 31, 2022 $ 44.4 |
Long-term Employee Benefits (Ta
Long-term Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic benefit costs for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Components of net periodic benefit cost: Net periodic benefit cost: Service cost $ 1.7 $ 1.8 Interest cost 2.4 2.0 Expected return on plan assets (3.2) (3.4) Amortization of actuarial losses, net 0.9 1.2 Net periodic benefit cost $ 1.8 $ 1.6 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Options Roll Forward | A summary of award activity by type for the three months ended March 31, 2022 is presented below. Stock Options Awards Weighted- Aggregate Weighted Outstanding at January 1, 2022 1.4 $ 26.30 Granted — $ — Exercised — $ — Forfeited / Expired — $ — Outstanding at March 31, 2022 1.4 $ 26.30 Vested and expected to vest at March 31, 2022 1.4 $ 26.30 $ 2.5 4.36 Exercisable at March 31, 2022 1.4 $ 26.30 $ 2.5 4.30 |
Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward | Restricted Stock Units Units Weighted-Average Outstanding at January 1, 2022 1.1 $ 28.85 Granted 0.6 $ 28.87 Vested (0.4) $ 28.43 Forfeited (1) — $ 28.78 Outstanding at March 31, 2022 1.3 $ 29.00 (1) Activity during the three months ended March 31, 2022 rounds to zero. |
Schedule of Performance Stock Roll Forward | Performance Share Units Units Weighted-Average Outstanding at January 1, 2022 0.8 $ 30.10 Granted 0.4 $ 30.61 Vested (0.1) $ 29.12 Forfeited (0.2) $ 29.61 Outstanding at March 31, 2022 0.9 $ 30.46 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | Three Months Ended March 31, 2022 2021 Foreign exchange losses, net $ 2.6 $ 1.8 Other miscellaneous income, net (0.8) (2.2) Total $ 1.8 $ (0.4) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rates for the three months ended March 31, 2022 and 2021 are as follows: Three Months Ended March 31, 2022 2021 Effective Tax Rate 21.2 % 19.5 % |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of our basic and diluted net income per common share is as follows: Three Months Ended March 31, (In millions, except per share data) 2022 2021 Net income to common shareholders $ 41.5 $ 15.2 Basic weighted average shares outstanding 224.7 233.9 Diluted weighted average shares outstanding 225.2 234.7 Net income per common share: Basic net income per share $ 0.18 $ 0.06 Diluted net income per share $ 0.18 $ 0.06 |
Accounts and Notes Receivable_2
Accounts and Notes Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | March 31, 2022 December 31, 2021 Accounts receivable - trade, net (1) $ 854.0 $ 760.4 Notes receivable 25.3 24.7 Other (2) 150.5 152.4 Total $ 1,029.8 $ 937.5 (1) Allowance for doubtful accounts was $25.5 million and $22.0 million at March 31, 2022 and December 31, 2021, respectively. (2) Includes $38.2 million and $52.7 million at March 31, 2022 and December 31, 2021, respectively, of insurance recoveries related to the operational matter as discussed further in Note 6. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | March 31, 2022 December 31, 2021 Finished products $ 416.9 $ 355.9 Semi-finished products 100.9 109.7 Raw materials 220.1 180.8 Stores and supplies 26.1 23.3 Total $ 764.0 $ 669.7 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | March 31, 2022 December 31, 2021 Property, plant and equipment $ 2,333.1 $ 2,299.4 Accumulated depreciation (1,148.7) (1,113.2) Property, plant, and equipment, net $ 1,184.4 $ 1,186.2 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Borrowings are summarized as follows: March 31, 2022 December 31, 2021 2024 Dollar Term Loans $ 2,032.8 $ 2,038.9 2025 Euro Senior Notes 501.8 508.8 2027 Dollar Senior Notes 500.0 500.0 2029 Dollar Senior Notes 700.0 700.0 Short-term and other borrowings 110.6 113.8 Unamortized original issue discount (4.1) (4.6) Unamortized deferred financing costs (25.8) (27.3) Total borrowings, net 3,815.3 3,829.6 Less: Short-term borrowings 51.8 55.4 Current portion of long-term borrowings 24.3 24.3 Long-term debt $ 3,739.2 $ 3,749.9 |
Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2022. Remainder of 2022 $ 68.1 2023 27.5 2024 1,993.5 2025 505.1 2026 3.6 Thereafter 1,247.4 Total borrowings 3,845.2 Unamortized original issue discount (4.1) Unamortized deferred financing costs (25.8) Total borrowings, net $ 3,815.3 |
Financial Instruments, Hedgin_2
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Prepaid expenses and other current assets: Interest rate swaps (1) $ — $ 0.7 $ — $ 0.7 $ — $ — $ — $ — Cross-currency swaps (2) — 18.6 — 18.6 — 17.7 — 17.7 Foreign currency forward contracts (1)(3) — — — — — — — — Other assets: Cross-currency swaps (2) — — — — — 8.3 — 8.3 Investments in equity securities 0.7 — — 0.7 0.7 — — 0.7 Liabilities: Other accrued liabilities: Interest rate swaps (1) — 7.5 — 7.5 — 24.3 — 24.3 Contingent consideration — — 7.8 7.8 — — 7.8 7.8 Other liabilities: Interest rate swaps (1) — — — — — 1.9 — 1.9 Cross-currency swaps (2) — 16.4 — 16.4 — — — — Long-term borrowings: 2024 Dollar Term Loans — 1,998.9 — 1,998.9 — 2,038.5 — 2,038.5 2025 Euro Senior Notes — 494.6 — 494.6 — 513.7 — 513.7 2027 Dollar Senior Notes — 480.9 — 480.9 — 522.9 — 522.9 2029 Dollar Senior Notes — 615.6 — 615.6 — 679.5 — 679.5 (1) Cash flow hedge (2) Net investment hedge (3) Balances at March 31, 2022 round to zero |
Schedule of Fair Value, Liability Activity | The table below presents a roll forward of activity for the Level 3 liabilities during the three months ended March 31, 2022. Fair Value Using Significant Unobservable Inputs Beginning balance December 31, 2021 $ 7.8 Change in fair value — Ending balance at March 31, 2022 $ 7.8 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair values of derivative instruments that qualify and have been designated as cash flow and net investment hedges included in AOCI: March 31, 2022 December 31, 2021 AOCI: Interest rate swaps (cash flow hedges) $ 6.8 $ 26.3 Foreign currency forward contracts (cash flow hedges) (1) — — Cross-currency swaps (net investment hedges) (26.8) (26.0) Total AOCI $ (20.0) $ 0.3 (1) Activity during the three months ended March 31, 2022 rounds to zero |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables set forth the locations and amounts recognized during the three months ended March 31, 2022 and 2021 for these cash flow and net investment hedges. For the Three Months Ended March 31, 2022 2021 Derivatives in Cash Flow and Net Investment Hedges Location of Loss (Gain) Recognized in Income on Derivatives Net Amount of (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Net Amount of (Gain) Recognized in OCI on Derivatives Amount of Loss (Gain) Recognized in Income Interest rate caps Interest expense, net $ — $ — $ — $ 0.6 Interest rate swaps Interest expense, net (12.4) 7.1 (1.5) 7.0 Foreign currency forward contracts (1) Cost of goods sold — — (0.1) — Cross-currency swaps Interest expense, net (5.6) (4.8) (29.6) (4.8) (1) Activity during the three months ended March 31, 2022 rounds to zero |
Derivatives Not Designated as Hedging Instruments | Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows: Derivatives Not Designated as Hedging Location of Loss Recognized in Three Months Ended March 31, 2022 2021 Foreign currency forward contracts Other expense (income), net $ 0.3 $ (6.8) |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents relevant information of our reportable segments. Three Months Ended March 31, 2022 2021 Net sales (1) : Refinish $ 461.4 $ 399.0 Industrial 353.0 308.3 Total Net sales Performance Coatings 814.4 707.3 Light Vehicle 275.6 278.9 Commercial Vehicle 84.1 77.4 Total Net sales Mobility Coatings 359.7 356.3 Total Net sales $ 1,174.1 $ 1,063.6 Depreciation and amortization expense (2) : Performance Coatings $ 58.0 $ 54.0 Mobility Coatings 19.7 22.4 Total Depreciation and amortization expense $ 77.7 $ 76.4 (1) The Company has no intercompany sales between segments. (2) Depreciation and amortization expenses relating to assets used within the operations of a specifically identifiable segment are recorded to the appropriate segment, while depreciation and amortization expenses relating to assets shared in our integrated supply chain are allocated to the appropriate segments on a consistent basis reflecting their use. |
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 March 31, 2022 2021 Segment Adjusted EBIT (1) : Performance Coatings $ 94.6 $ 117.2 Mobility Coatings 0.5 39.2 Total (2) 95.1 156.4 Interest expense, net 32.6 33.5 Termination benefits and other employee related costs (a) 2.4 2.8 Strategic review and retention costs (b) — 5.4 Acquisition and divestiture-related costs (c) 0.4 0.2 Impairment charges (d) 0.3 — Accelerated depreciation and site closure costs (e) 1.3 0.6 Indemnity loss (f) 0.3 — Operational matter (g) 0.1 94.4 Russia sanction-related impacts (h) 5.8 — Income before income taxes $ 51.9 $ 19.5 (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 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 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. (b) 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 were earned over a period of 18-24 months, which ended in September 2021. These amounts are not considered indicative of our ongoing performance. (c) Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. (d) Represents impairment charges, which are not considered indicative of our ongoing performance. (e) Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance. (f) Represents indemnity loss associated with acquisitions, which we do not consider indicative of our ongoing operating performance. (g) Represents expenses, changes in estimates and insurance recoveries for probable liabilities related to an operational matter in the Mobility Coatings segment discussed further in Note 6, which we do not consider indicative of our ongoing operating performance. (h) Represents expenses related to sanctions imposed on Russia in response to the conflict with Ukraine as a result of incremental reserves for accounts receivable and incremental inventory obsolescence, which we do not consider indicative of our ongoing operating performance. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Unrealized Pension Unrealized Accumulated Balance, December 31, 2021 $ (331.3) $ (60.4) $ (22.7) $ (414.4) Current year deferrals to AOCI 0.4 — 10.8 11.2 Reclassifications from AOCI to Net income (4.8) 0.5 6.1 1.8 Net Change (4.4) 0.5 16.9 13.0 Balance, March 31, 2022 $ (335.7) $ (59.9) $ (5.8) $ (401.4) Unrealized Pension Unrealized Accumulated Balance, December 31, 2020 $ (282.0) $ (88.7) $ (54.1) $ (424.8) Current year deferrals to AOCI (32.6) — 1.3 (31.3) Reclassifications from AOCI to Net income (4.8) 0.7 6.6 2.5 Net Change (37.4) 0.7 7.9 (28.8) Balance, March 31, 2021 $ (319.4) $ (88.0) $ (46.2) $ (453.6) |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with customer, asset | $ 37.7 | $ 36.1 | |
Capitalized contract cost, net | 149.3 | 151.2 | |
Capitalized contract cost, amortization | 14.5 | $ 15.3 | |
Upfront incentive payments | $ 69.7 | $ 72.7 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Millions | Sep. 15, 2021USD ($) |
U-POL | |
Business Acquisition [Line Items] | |
Consideration transferred | $ 619.8 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 15, 2021 |
Business Acquisition [Line Items] | |||
Goodwill from acquisition | $ 1,574.4 | $ 1,592.7 | |
U-POL | |||
Business Acquisition [Line Items] | |||
Cash | $ 23.7 | ||
Accounts and notes receivable, net | 22.5 | ||
Inventories | 23.3 | ||
Prepaid expenses and other current assets, net | 3.2 | ||
Property, plant and equipment, net | 15 | ||
Identifiable intangible assets | 274 | ||
Other assets | 2.1 | ||
Accounts payable | (20.9) | ||
Other accrued liabilities | (4.2) | ||
Other liabilities | (0.9) | ||
Deferred income taxes | (69.3) | ||
Net assets before goodwill from acquisition | 268.5 | ||
Goodwill from acquisition | 351.3 | ||
Net assets acquired | 619.8 | ||
U-POL | Previously Reported | |||
Business Acquisition [Line Items] | |||
Cash | 23.7 | ||
Accounts and notes receivable, net | 22.5 | ||
Inventories | 23.3 | ||
Prepaid expenses and other current assets, net | 3.2 | ||
Property, plant and equipment, net | 16.5 | ||
Identifiable intangible assets | 273 | ||
Other assets | 2 | ||
Accounts payable | (20.9) | ||
Other accrued liabilities | (3.9) | ||
Other liabilities | (0.9) | ||
Deferred income taxes | (68.4) | ||
Net assets before goodwill from acquisition | 270.1 | ||
Goodwill from acquisition | 349.7 | ||
Net assets acquired | 619.8 | ||
U-POL | Revision of Prior Period, Adjustment | |||
Business Acquisition [Line Items] | |||
Cash | 0 | ||
Accounts and notes receivable, net | 0 | ||
Inventories | 0 | ||
Prepaid expenses and other current assets, net | 0 | ||
Property, plant and equipment, net | (1.5) | ||
Identifiable intangible assets | 1 | ||
Other assets | 0.1 | ||
Accounts payable | 0 | ||
Other accrued liabilities | (0.3) | ||
Other liabilities | 0 | ||
Deferred income taxes | (0.9) | ||
Net assets before goodwill from acquisition | (1.6) | ||
Goodwill from acquisition | 1.6 | ||
Net assets acquired | $ 0 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,592.7 |
Purchase accounting adjustments | 1.8 |
Foreign currency translation | (20.1) |
Goodwill, ending balance | 1,574.4 |
Performance Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,513.4 |
Purchase accounting adjustments | 1.8 |
Foreign currency translation | (19.4) |
Goodwill, ending balance | 1,495.8 |
Mobility Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 79.3 |
Purchase accounting adjustments | 0 |
Foreign currency translation | (0.7) |
Goodwill, ending balance | $ 78.6 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 2,110.9 | $ 2,122.8 |
Accumulated Amortization | (873.4) | (844.6) |
Net Book Value, definite-lived | 1,237.5 | 1,278.2 |
Trademarks | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Net Book Value, indefinite-lived | 264.1 | 266.7 |
Technology | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 570.7 | 575.3 |
Accumulated Amortization | (431.9) | (420.9) |
Net Book Value, definite-lived | $ 138.8 | $ 154.4 |
Weighted average amortization periods (years) | 10 years 2 months 12 days | 10 years 2 months 12 days |
Trademarks | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 132.8 | $ 134.5 |
Accumulated Amortization | (46) | (43.8) |
Net Book Value, definite-lived | $ 86.8 | $ 90.7 |
Weighted average amortization periods (years) | 14 years 4 months 24 days | 14 years 4 months 24 days |
Customer relationships | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 1,129.2 | $ 1,131.8 |
Accumulated Amortization | (381.9) | (366.6) |
Net Book Value, definite-lived | $ 747.3 | $ 765.2 |
Weighted average amortization periods (years) | 19 years 2 months 12 days | 19 years 2 months 12 days |
Other | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $ 14.1 | $ 14.5 |
Accumulated Amortization | (13.6) | (13.3) |
Net Book Value, definite-lived | $ 0.5 | $ 1.2 |
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 | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2022 | $ 96.2 |
2023 | 89.6 |
2024 | 84.8 |
2025 | 84.2 |
2026 | 83.7 |
2027 | $ 82.6 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $ 2.4 | $ 4.5 |
Payment term (in months) | 24 months |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 57.5 | |
Expenses, net of changes to estimates | 2.4 | $ 4.5 |
Payments made | (15) | |
Foreign currency translation | (0.5) | |
Ending balance | $ 44.4 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Maximum exposure | $ 5.1 | $ 5.7 | |
Current carrying value | 0 | 0 | |
Recorded charge (benefit) expense in probable loss | 0.1 | $ 94.4 | |
Insurance receivable | 38.2 | 52.7 | |
Loss recorded as a liability | $ 48.6 | $ 49.7 |
Long-term Employee Benefits - S
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 1.7 | $ 1.8 |
Interest cost | 2.4 | 2 |
Expected return on plan assets | (3.2) | (3.4) |
Amortization of actuarial losses, net | 0.9 | 1.2 |
Net periodic benefit cost | $ 1.8 | $ 1.6 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 5.3 | $ 3.6 |
Stock based compensation tax benefit | $ 0.6 | $ 0.3 |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period for recognition of compensation not yet recognized | 2 months 12 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 8 months 12 days | |
Tax benefit realized on the vesting of restricted stock | $ 0.1 | |
Compensation not yet recognized, share-based awards other than options | $ 25.7 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period for recognition of compensation not yet recognized | 2 years 8 months 12 days | |
Compensation not yet recognized, share-based awards other than options | $ 14.4 | |
Performance stock awards expected to vest (in shares) | 0.5 | |
Weighted average fair value per share of performance stock awards expected to vest (in usd per share) | $ 30.30 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Awards (in millions) | |
Beginning Balance (in shares) | shares | 1.4 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited/Expired (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1.4 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 26.30 |
Granted (in usd per share) | $ / shares | 0 |
Exercised (in usd per share) | $ / shares | 0 |
Forfeited/Expired (in usd per share) | $ / shares | 0 |
Ending Balance (in usd per share) | $ / shares | $ 26.30 |
Vested and Expected to Vest | |
Vested and expected to vest, awards (in shares) | shares | 1.4 |
Vested and expected to vest, weighted average exercise price (in usd per share) | $ / shares | $ 26.30 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 2.5 |
Vested and expected to vest, weighted average contractual life (in years) | 4 years 4 months 9 days |
Exercisable | |
Exercisable, awards (in shares) | shares | 1.4 |
Exercisable, weighted average exercise price (in usd per share) | $ / shares | $ 26.30 |
Exercisable, aggregate intrinsic value | $ | $ 2.5 |
Exercisable, weighted average contractual life (in years) | 4 years 3 months 18 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 | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Units (millions) | |
Beginning Balance (in shares) | shares | 1.1 |
Granted (in shares) | shares | 0.6 |
Vested (in shares) | shares | (0.4) |
Forfeited (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1.3 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 28.85 |
Granted (in usd per share) | $ / shares | 28.87 |
Vested (in usd per share) | $ / shares | 28.43 |
Forfeited (in usd per share) | $ / shares | 28.78 |
Ending Balance (in usd per share) | $ / shares | $ 29 |
Stock-based Compensation - Sc_3
Stock-based Compensation - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares shares in Millions | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Units (millions) | |
Beginning Balance (in shares) | shares | 0.8 |
Granted (in shares) | shares | 0.4 |
Vested (in shares) | shares | (0.1) |
Forfeited (in shares) | shares | (0.2) |
Ending Balance (in shares) | shares | 0.9 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 30.10 |
Granted (in usd per share) | $ / shares | 30.61 |
Vested (in usd per share) | $ / shares | 29.12 |
Forfeited (in usd per share) | $ / shares | 29.61 |
Ending Balance (in usd per share) | $ / shares | $ 30.46 |
Other Expense (Income), Net - S
Other Expense (Income), Net - Schedule of Other Non-operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Foreign exchange losses, net | $ 2.6 | $ 1.8 |
Other miscellaneous income, net | (0.8) | (2.2) |
Total | $ 1.8 | $ (0.4) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective Tax Rate | 21.20% | 19.50% |
Settlement with Taxing Authority | ||
income tax settlement [Line Items] | ||
Amount reasonable possible to settle of unrecognized tax benefits | $ 11.2 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income to common shareholders | $ 41.5 | $ 15.2 |
Basic weighted average shares outstanding (in shares) | 224.7 | 233.9 |
Diluted weighted average shares outstanding (in shares) | 225.2 | 234.7 |
Net income per common share: | ||
Basic net income per share (in dollars per share) | $ 0.18 | $ 0.06 |
Diluted net income per share (in dollars per share) | $ 0.18 | $ 0.06 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 1 | 1.5 |
Accounts and Notes Receivable_3
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable - trade, net | $ 854 | $ 760.4 |
Notes receivable | 25.3 | 24.7 |
Other | 150.5 | 152.4 |
Total | 1,029.8 | 937.5 |
Allowance for doubtful accounts | 25.5 | 22 |
Insurance receivable | $ 38.2 | $ 52.7 |
Accounts and Notes Receivable_4
Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Bad debt expense net of recoveries | $ (0.5) | $ 0.7 |
Russia Conflict With Ukraine | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Bad debt expense net of recoveries | $ 4.1 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 416.9 | $ 355.9 |
Semi-finished products | 100.9 | 109.7 |
Raw materials | 220.1 | 180.8 |
Stores and supplies | 26.1 | 23.3 |
Total Inventories | $ 764 | $ 669.7 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Inventory reserves | $ 17.1 | $ 15.6 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 2,333.1 | $ 2,299.4 |
Accumulated depreciation | (1,148.7) | (1,113.2) |
Property, plant, and equipment, net | $ 1,184.4 | $ 1,186.2 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 30.1 | $ 31.9 |
Borrowings - Schedule of Debt (
Borrowings - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Short-term and other borrowings | $ 110.6 | $ 113.8 |
Unamortized original issue discount | (4.1) | (4.6) |
Unamortized deferred financing costs | (25.8) | (27.3) |
Total borrowings, net | 3,815.3 | 3,829.6 |
Short-term borrowings | 51.8 | 55.4 |
Current portion of long-term borrowings | 24.3 | 24.3 |
Long-term debt | 3,739.2 | 3,749.9 |
2024 Dollar Term Loans | ||
Debt Instrument [Line Items] | ||
Term loan | 2,032.8 | 2,038.9 |
2025 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 501.8 | 508.8 |
2027 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 500 | 500 |
2029 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 700 | $ 700 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Short-term borrowings | $ 51.8 | $ 55.4 | |
Cash outflows | $ 24.1 | $ 20 | |
Supplier Financing Arrangements | |||
Debt Instrument [Line Items] | |||
Debt term | 90 days | ||
Short-term borrowings | $ 21.2 | 18.4 | |
Cash outflows | 24.1 | 13.7 | |
Supplier Financing Arrangements | Property, Plant, And Equipment Purchases | |||
Debt Instrument [Line Items] | |||
Short-term borrowings | 4.2 | 2.6 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding, amount | 22.1 | 22.1 | |
Line of credit facility, remaining borrowing capacity | $ 527.9 | $ 527.9 |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Remainder of 2022 | $ 68.1 | |
2023 | 27.5 | |
2024 | 1,993.5 | |
2025 | 505.1 | |
2026 | 3.6 | |
Thereafter | 1,247.4 | |
Total borrowings | 3,845.2 | |
Unamortized original issue discount | (4.1) | $ (4.6) |
Unamortized deferred financing costs | (25.8) | (27.3) |
Total borrowings, net | $ 3,815.3 | $ 3,829.6 |
Financial Instruments, Hedgin_3
Financial Instruments, Hedging Activities and Fair Value Measurements - Additional Information (Details) € in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022USD ($)derivative_instrument | Mar. 31, 2022EUR (€) | Mar. 31, 2021USD ($) | Mar. 31, 2022EUR (€)derivative_instrument | Apr. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of contingent consideration | $ 7.8 | $ 7.3 | |||
Cash proceeds on cross-currency swaps | 25 | $ 0 | |||
Cash flow hedge loss to be reclassified within twelve months | 6.7 | ||||
Foreign currency forward contracts | Cash flow hedging | Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, notional amount | $ 3 | ||||
Cross-currency swaps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments settled | derivative_instrument | 2 | 2 | |||
Notional amount, settled during period | € | € 335 | ||||
Number of derivative instruments held | derivative_instrument | 2 | 2 | |||
Derivative, notional amount | $ 365.5 | € 335 | |||
Derivative interest rate of hedged item | 3.375% | 3.375% | |||
Derivative, fixed interest rate | 2.04% | 2.04% |
Financial Instruments, Hedgin_4
Financial Instruments, Hedging Activities and Fair Value Measurements - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | $ 0.7 | $ 0.7 |
Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, current | 7.8 | 7.8 |
Long-term borrowings | 2024 Dollar Term Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 1,998.9 | 2,038.5 |
Long-term borrowings | 2025 Euro Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 494.6 | 513.7 |
Long-term borrowings | 2027 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 480.9 | 522.9 |
Long-term borrowings | 2029 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 615.6 | 679.5 |
Interest rate 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 | 0.7 | 0 |
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 | 7.5 | 24.3 |
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 | 1.9 |
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 | 18.6 | 17.7 |
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 | 8.3 |
Cross-currency swaps | Other liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 16.4 | 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 | 0 |
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 | 0.7 |
Fair Value, Inputs, Level 1 | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, current | 0 | 0 |
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 | 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 | Long-term borrowings | 2029 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 | Interest rate 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 | 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 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 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 | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, current | 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 | 1,998.9 | 2,038.5 |
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 | 494.6 | 513.7 |
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 | 480.9 | 522.9 |
Fair Value, Inputs, Level 2 | Long-term borrowings | 2029 Dollar Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 615.6 | 679.5 |
Fair Value, Inputs, Level 2 | Interest rate 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 | 0.7 | 0 |
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 | 7.5 | 24.3 |
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 | 0 | 1.9 |
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 | 18.6 | 17.7 |
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 | 8.3 |
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 | 16.4 | 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 | 0 |
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 | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, current | 7.8 | 7.8 |
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 | 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 | Long-term borrowings | 2029 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 | Interest rate 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 | 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 |
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 |
Financial Instruments, Hedgin_5
Financial Instruments, Hedging Activities and Fair Value Measurements - Schedule of Liability Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 7.8 |
Change in fair value | 0 |
Ending balance | $ 7.8 |
Financial Instruments, Hedgin_6
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | $ (20) | $ 0.3 |
Cash flow hedging | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 6.8 | 26.3 |
Cash flow hedging | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 0 | 0 |
Net investment hedging | Cross-currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | $ (26.8) | $ (26) |
Financial Instruments, Hedgin_7
Financial Instruments, Hedging Activities and Fair Value Measurements - Derivative Locations and Amounts Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Amount of (Gain) Recognized in OCI on Derivatives | $ 19.5 | $ 9.2 |
Interest rate caps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Amount of (Gain) Recognized in OCI on Derivatives | 0 | 0 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Amount of (Gain) Recognized in OCI on Derivatives | (12.4) | (1.5) |
Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Amount of (Gain) Recognized in OCI on Derivatives | 0 | (0.1) |
Cross-currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Amount of (Gain) Recognized in OCI on Derivatives, Cross-currency swaps | (5.6) | (29.6) |
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 | 0.6 |
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 | 7.1 | 7 |
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 | 0.3 | (6.8) |
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 | (4.8) | (4.8) |
Cost of goods sold | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount of Loss (Gain) Recognized in Income | $ 0 | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022Segment | |
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 ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,174.1 | $ 1,063.6 |
Depreciation and amortization expense | 77.7 | 76.4 |
Intercompany sales between segments | 0 | 0 |
Performance Coatings | ||
Segment Reporting Information [Line Items] | ||
Net sales | 814.4 | 707.3 |
Depreciation and amortization expense | 58 | 54 |
Mobility Coatings | ||
Segment Reporting Information [Line Items] | ||
Net sales | 359.7 | 356.3 |
Depreciation and amortization expense | 19.7 | 22.4 |
Refinish | Performance Coatings | ||
Segment Reporting Information [Line Items] | ||
Net sales | 461.4 | 399 |
Industrial | Performance Coatings | ||
Segment Reporting Information [Line Items] | ||
Net sales | 353 | 308.3 |
Light Vehicle | Mobility Coatings | ||
Segment Reporting Information [Line Items] | ||
Net sales | 275.6 | 278.9 |
Commercial Vehicle | Mobility Coatings | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 84.1 | $ 77.4 |
Segments - Reconciliation of Op
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Adjusted EBIT | $ 95.1 | $ 156.4 |
Interest expense, net | 32.6 | 33.5 |
Termination benefits and other employee related costs | 2.4 | 2.8 |
Strategic review and retention costs | 0 | 5.4 |
Acquisition and divestiture-related costs | 0.4 | 0.2 |
Impairment (benefits) charges | 0.3 | 0 |
Accelerated depreciation and site closure costs | 1.3 | 0.6 |
Indemnity loss | 0.3 | 0 |
Operational matter | 0.1 | 94.4 |
Russia sanction-related impacts | 5.8 | 0 |
Income before income taxes | 51.9 | 19.5 |
Performance Coatings | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Adjusted EBIT | 94.6 | 117.2 |
Mobility Coatings | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Adjusted EBIT | $ 0.5 | $ 39.2 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI, beginning balance | $ (414.4) | |
AOCI, ending balance | (401.4) | |
Unrealized Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI, beginning balance | (331.3) | $ (282) |
Current year deferrals to AOCI | 0.4 | (32.6) |
Reclassifications from AOCI to Net income | (4.8) | (4.8) |
Net Change | (4.4) | (37.4) |
AOCI, ending balance | (335.7) | (319.4) |
Pension Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI, beginning balance | (60.4) | (88.7) |
Current year deferrals to AOCI | 0 | 0 |
Reclassifications from AOCI to Net income | 0.5 | 0.7 |
Net Change | 0.5 | 0.7 |
AOCI, ending balance | (59.9) | (88) |
Unrealized (Loss) Gain on Derivatives | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI, beginning balance | (22.7) | (54.1) |
Current year deferrals to AOCI | 10.8 | 1.3 |
Reclassifications from AOCI to Net income | 6.1 | 6.6 |
Net Change | 16.9 | 7.9 |
AOCI, ending balance | (5.8) | (46.2) |
Accumulated Other Comprehensive (Loss) Income | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI, beginning balance | (414.4) | (424.8) |
Current year deferrals to AOCI | 11.2 | (31.3) |
Reclassifications from AOCI to Net income | 1.8 | 2.5 |
Net Change | 13 | (28.8) |
AOCI, ending balance | $ (401.4) | $ (453.6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Equity [Abstract] | ||
Cumulative income tax benefit on pension and postretirement benefit plans | $ (24.4) | $ (33) |
Cumulative income tax benefit on derivatives | $ (1) | $ (7.5) |