AXALTA COATING SYSTEMS LTD., 10-Q filed on 4/28/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2016
Apr. 18, 2016
Document And Entity Information [Abstract]
 
 
Entity Registrant Name
Axalta Coating Systems Ltd. 
 
Trading Symbol
AXTA 
 
Entity Central Index Key
0001616862 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
238,781,495 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Statement [Abstract]
 
 
Net sales
$ 955.6 
$ 989.2 
Other revenue
6.0 
8.3 
Total revenue
961.6 
997.5 
Cost of goods sold
606.4 
649.8 
Selling, general and administrative expenses
219.1 
213.0 
Research and development expenses
12.6 
12.9 
Amortization of acquired intangibles
20.2 
20.0 
Income from operations
103.3 
101.8 
Interest expense, net
50.1 
50.0 
Other expense, net
8.0 
3.9 
Income before income taxes
45.2 
47.9 
Provision for income taxes
14.6 
1.2 
Net income
30.6 
46.7 
Less: Net income attributable to noncontrolling interests
0.9 
1.6 
Net income attributable to controlling interests
$ 29.7 
$ 45.1 
Basic net income (loss) per share (dollars per share)
$ 0.13 
$ 0.20 
Diluted net income (loss) per share (dollars per share)
$ 0.12 
$ 0.19 
Basic weighted average shares outstanding (in shares)
237.1 
229.8 
Diluted weighted average shares outstanding (in shares)
241.6 
237.0 
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 30.6 
$ 46.7 
Other comprehensive income (loss), before tax:
 
 
Foreign currency translation adjustments
15.7 
(109.6)
Unrealized gain (loss) on securities
(0.4)
0.5 
Unrealized loss on derivatives
(2.2)
(4.8)
Unrealized loss on pension and other benefit plan obligations
(0.1)
(1.2)
Other comprehensive income (loss), before tax
13.0 
(115.1)
Income tax benefit related to items of other comprehensive income (loss)
0.8 
2.6 
Other comprehensive income (loss), net of tax
13.8 
(112.5)
Comprehensive income (loss)
44.4 
(65.8)
Less: Comprehensive income attributable to noncontrolling interests
0.9 
1.2 
Comprehensive income (loss) attributable to controlling interests
$ 43.5 
$ (67.0)
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 419.5 
$ 485.0 
Restricted cash
2.8 
2.7 
Accounts and notes receivable, net
792.7 
765.8 
Inventories
543.4 
530.7 
Prepaid expenses and other
64.7 
63.6 
Deferred income taxes
54.9 
69.5 
Total current assets
1,878.0 
1,917.3 
Property, plant and equipment, net
1,377.5 
1,382.9 
Goodwill
942.1 
928.2 
Identifiable intangibles, net
1,177.2 
1,191.6 
Other assets
458.3 
434.2 
Total assets
5,833.1 
5,854.2 
Current liabilities:
 
 
Accounts payable
419.8 
454.7 
Current portion of borrowings
53.7 
50.1 
Deferred income taxes
7.1 
6.6 
Other accrued liabilities
300.6 
370.2 
Total current liabilities
781.2 
881.6 
Long-term borrowings
3,405.1 
3,391.4 
Long-term employee benefits
252.2 
252.3 
Deferred income taxes
166.8 
165.5 
Other liabilities
26.8 
22.2 
Total liabilities
4,632.1 
4,713.0 
Commitments and contingencies
   
   
Shareholders’ equity
 
 
Common shares, $1.00 par, 1,000.0 shares authorized, 238.5 and 237.9 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively
237.2 
237.0 
Capital in excess of par
1,255.5 
1,238.8 
Accumulated deficit
(103.1)
(132.8)
Accumulated other comprehensive loss
(255.5)
(269.3)
Total Axalta shareholders’ equity
1,134.1 
1,073.7 
Noncontrolling interests
66.9 
67.5 
Total shareholders’ equity
1,201.0 
1,141.2 
Total liabilities and shareholders’ equity
$ 5,833.1 
$ 5,854.2 
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Common stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
Common shares, shares authorized (in shares)
1,000.0 
1,000.0 
Common shares, shares issued (in shares)
238.5 
237.9 
Common shares, shares outstanding (in shares)
238.5 
237.9 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating activities:
 
 
Net income
$ 30.6 
$ 46.7 
Adjustment to reconcile net income to cash used for operating activities:
 
 
Depreciation and amortization
76.0 
72.6 
Amortization of financing costs and original issue discount
5.1 
5.0 
Deferred income taxes
(2.4)
(17.2)
Realized and unrealized foreign exchange losses, net
7.5 
4.8 
Stock-based compensation
10.2 
1.8 
Other non-cash, net
(3.0)
0.1 
Changes in operating assets and liabilities:
 
 
Trade accounts and notes receivable
(26.5)
(53.5)
Inventories
(7.5)
(25.9)
Prepaid expenses and other
(13.8)
(36.3)
Accounts payable
(16.6)
(1.0)
Other accrued liabilities
(74.2)
(91.1)
Other liabilities
(3.4)
(4.7)
Cash used for operating activities
(18.0)
(98.7)
Investing activities:
 
 
Business acquisitions and purchases of controlling interests in affiliates (net of cash acquired)
(3.2)
Purchase of property, plant and equipment
(40.3)
(31.5)
Restricted cash
(0.1)
1.8 
Other investing
(2.9)
2.7 
Cash used for investing activities
(43.3)
(30.2)
Financing activities:
 
 
Proceeds from short-term borrowings
1.5 
Payments on short-term borrowings
(0.3)
(10.7)
Payments on long-term borrowings
(6.9)
(6.8)
Dividends paid to noncontrolling interests
(1.5)
(3.5)
Proceeds from option exercises and associated tax benefits
6.7 
Other financing activities
(0.3)
(0.2)
Cash used for financing activities
(2.3)
(19.7)
Decrease in cash and cash equivalents
(63.6)
(148.6)
Effect of exchange rate changes on cash
(1.9)
(10.6)
Cash and cash equivalents at beginning of period
485.0 
382.1 
Cash and cash equivalents at end of period
$ 419.5 
$ 222.9 
Basis of Presentation of the Condensed Consolidated Financial Statements
Basis of Presentation of the Condensed Consolidated Financial Statements
BASIS OF PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at March 31, 2016 and December 31, 2015, the results of operations and comprehensive income (loss) for the three months ended March 31, 2016 and 2015, and their cash flows for the three months then ended. All intercompany balances and transactions have been eliminated. These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated and combined financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
The accompanying financial statements include the interim unaudited condensed consolidated balance sheets of Axalta at March 31, 2016 and December 31, 2015, the related interim unaudited condensed consolidated statements of operations and statements of comprehensive income (loss) for the three months ended March 31, 2016 and 2015 and of cash flows for the three months ended March 31, 2016 and 2015. The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material.
The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for a full year.
The Acquisition
The acquisition ("Acquisition") by Axalta and certain of its indirect subsidiaries of all the capital stock, other equity interests and assets of certain entities which, together with their subsidiaries, comprised the assets and legal entities, which together with their subsidiaries, compromised the DuPont Performance Coatings business ("DPC"), which was formerly owned by E. I. du Pont de Nemours and Company ("DuPont"), closed on February 1, 2013.
The Carlyle Offerings
On November 11, 2014, we priced our initial public offering (the "Offering", or the "IPO"), in which certain selling shareholders affiliated with Carlyle sold 57,500,000 common shares at a price of $19.50 per share.
In April 2015, we completed a secondary offering (the "Secondary Offering") in which Carlyle sold an aggregate of 46,000,000 common shares at a price of $28.00 per share. In addition, Carlyle sold 20,000,000 common shares in a private placement to an affiliate of Berkshire Hathaway Inc. (together with the Secondary Offering, the "April 2015 Secondary Offerings") for $28.00 per share. Following these sales, Carlyle ceased to control a majority of our common shares.
In August 2015, we completed a secondary offering (together with the IPO and the April 2015 Secondary Offerings, the "Carlyle Offerings") in which Carlyle sold an aggregate of 34,500,000 common shares at a public offering price of $29.75 per share.
We did not receive any proceeds from the sale of common shares in any of the Carlyle Offerings.
Recent Accounting Guidance
Recent Accounting Guidance
RECENT ACCOUNTING GUIDANCE
Accounting Guidance Issued But Not Yet Adopted
In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation. This standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.
In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize the assets and liabilities arising from all leases (both finance and operating) on the balance sheet. In addition to this main provision, this standard included a number of additional changes to lease accounting. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.
In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", which requires that all deferred tax assets and liabilities be classified as non-current on the balance sheet. The standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We intend to early adopt this standard during 2016. The impacts to the accompanying condensed consolidated balance sheets would have resulted in corresponding net reclassifications from current assets and liabilities to non-current assets and liabilities at March 31, 2016 and December 31, 2015 of $47.7 million and $62.9 million, respectively.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the guidance that an entity should use related to revenue recognition. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies will be allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.
We have determined that all other recently issued accounting standards will not have a material impact on our interim condensed consolidated financial statements or do not apply to our operations.
Goodwill and Identifiable Intangible Assets
Goodwill and Identifiable Intangible Assets
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
Goodwill
The following table shows changes in the carrying amount of goodwill from December 31, 2015 to March 31, 2016 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
At December 31, 2015
$
866.1

$
62.1

$
928.2

Foreign currency translation
13.0

0.9

13.9

March 31, 2016
$
879.1

$
63.0

$
942.1


Identifiable Intangible Assets
The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
March 31, 2016
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
413.8

$
(127.6
)
$
286.2

10.0
Trademarks - indefinite-lived
284.4


284.4

Indefinite
Trademarks - definite-lived
45.8

(9.3
)
36.5

14.8
Customer relationships
681.5

(112.0
)
569.5

19.3
Non-compete agreements
1.9

(1.3
)
0.6

4.6
Total
$
1,427.4

$
(250.2
)
$
1,177.2

 
December 31, 2015
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
413.0

$
(117.2
)
$
295.8

10.0
Trademarks—indefinite-lived
284.4


284.4

Indefinite
Trademarks—definite-lived
45.2

(8.5
)
36.7

14.7
Customer relationships
676.1

(102.1
)
574.0

19.3
Non-compete agreements
1.9

(1.2
)
0.7

4.6
Total
$
1,420.6

$
(229.0
)
$
1,191.6

 

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2016 and each of the succeeding four years is:
Remainder of 2016
$
60.4

2017
$
80.2

2018
$
80.1

2019
$
80.1

2020
$
80.0

Restructuring
Restructuring
RESTRUCTURING
In accordance with the applicable guidance for Nonretirement Postemployment Benefits, we accounted for termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated.
We have incurred costs associated with involuntary termination benefits associated with corporate-related initiatives, including our transition to a standalone entity and cost-saving opportunities associated with our Fit For Growth and Axalta Way initiatives. During the three months ended March 31, 2016 and 2015 we incurred restructuring costs of $0.5 million and $2.2 million, respectively. These amounts are recorded within selling, general and administrative expenses in the interim unaudited condensed consolidated statements of operations. The payments associated with these actions are expected to be completed within 12 to 15 months from March 31, 2016.
The following table summarizes the activities related to the restructuring reserves, recorded within other accrued liabilities, and expenses from December 31, 2015 to March 31, 2016:
 
2016 Activity
Balance at December 31, 2015
$
41.3

Expense Recorded
0.5

Payments Made
(11.7
)
Foreign Currency Changes
0.7

Balance at March 31, 2016
$
30.8

Commitments and Contingencies
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
Guarantees
We directly guarantee various debt obligations under agreements with third parties related to the following: equity affiliates, customers, suppliers and other affiliated companies. No amounts were accrued at March 31, 2016 or December 31, 2015.
Leases
At March 31, 2016, we have recorded approximately $17.7 million in property, plant and equipment representing our landlord's estimated costs incurred to construct properties under two separate build-to-suit lease arrangements. Both leases commenced construction during 2015 with construction expected to be completed during 2016 and 2017 for the two properties. The construction related to the build-to-suit leases have estimated total costs of approximately $54.8 million.
For accounting purposes, we are deemed the owner of the assets during the construction period and are required to record these costs as construction in progress during the construction period, with an offsetting liability in the same amount recorded to current and long-term borrowings, depending on the expected construction completion dates. These costs do not reflect the Company’s cash obligations, but represent the landlord’s costs to construct the properties, including costs for tenant improvements.
Other
We are subject to various pending lawsuits and other claims including civil, regulatory and environmental matters. Certain of these lawsuits and other claims may have an impact on us. These litigation matters may involve indemnification obligations by third parties and/or insurance coverage covering all or part of any potential damage awards against DuPont and/or us. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time.
The potential effects, if any, on the unaudited condensed consolidated financial statements of Axalta will be recorded in the period in which these matters are probable and estimable, and such effects, could be material.
In addition to the aforementioned matters, we are party to various legal proceedings in the ordinary course of business. Although the ultimate resolution of these various proceedings cannot be determined at this time, management does not believe that such proceedings, individually or in the aggregate, will have a material adverse effect on the unaudited condensed consolidated financial statements of Axalta.
Long-term Employee Benefits
Long-term Employee Benefits
LONG-TERM EMPLOYEE BENEFITS
Components of Net Periodic Pension Benefit Cost
The following table sets forth the components of net periodic benefit cost for the three months ended March 31, 2016 and 2015.
 
Three Months Ended March 31,
 
2016
2015
Components of net periodic benefit cost:
 
 
Net periodic benefit cost:
 
 
Service cost
$
2.5

$
3.1

Interest cost
3.9

4.6

Expected return on plan assets
(3.2
)
(3.7
)
Amortization of actuarial (gain) loss, net
(0.1
)
0.3

Amortization of prior service credit, net

(0.1
)
Net periodic benefit cost
$
3.1

$
4.2


Net periodic benefit gains associated with other long-term employee benefits consisted of amortization of prior service credits of $0.9 million for the three months ended March 31, 2015. At March 31, 2016, there were no liabilities associated with other long-term employee benefits as the plan was effectively settled at December 31, 2015.
Stock-based Compensation
Stock-based Compensation
STOCK-BASED COMPENSATION
During the three months ended March 31, 2016 and 2015 we recognized $10.2 million and $1.8 million, respectively, in stock-based compensation expense. Stock-based compensation expense is allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statement of operations.
We recognized a tax benefit on stock-based compensation of $3.9 million and $0.5 million for the three months ended March 31, 2016 and 2015, respectively.
In February 2016, we granted 1.1 million non-qualified, service-based stock options to certain employees and directors under the 2014 Incentive Award Plan (the "2014 Plan") with a strike price of $23.24 per share. In addition, we granted 0.8 million shares of restricted stock and restricted stock units at fair values equal to $23.24 per share. We also granted 0.3 million shares of performance share awards and performance share units at fair values equal to $24.74 per share.
Compensation cost is recorded net of forfeitures. The forfeiture rate assumption is the estimated annual rate at which unvested awards are expected to be forfeited during the vesting period. Periodically, management will assess whether it is necessary to adjust the estimated rate to reflect changes in actual forfeitures or changes in expectations. At March 31, 2016, the Company has estimated its annual forfeiture rate at 0% due to its historical trends and expectations of forfeitures.
Stock Options
The Black-Scholes option pricing model was used to estimate fair values of the options as of the date of the grant. The weighted average fair value of options granted in 2016 was $5.68 per share. Principal weighted average assumptions used in applying the Black-Scholes model were as follows:
 
2016 Grants
Expected Term
6.00 years

Volatility
21.63
%
Dividend Yield

Discount Rate
1.45
%

Options granted under the 2014 Plan vest ratably over three years and have a life of no more than ten years. For the option grants, the market value of the stock is the closing price of the stock on the date of grant. The expected term assumptions used for the 2016 and 2015 grants were also determined using the simplified method and resulted in an expected term of 6.0 years. We do not anticipate paying cash dividends in the foreseeable future and, therefore, used an expected dividend yield of zero. Volatility for outstanding grants is based upon the peer group since the Company was either privately-held at the date of grant or had a limited history as a public company. The discount rate was derived from the U.S. Treasury yield curve. The exercise price and market value per share amounts presented above were as of the date the stock options were granted.
A summary of stock option award activity as of March 31, 2016 and changes during the period then ended, is presented below:
 
Awards
(in millions)
Weighted-
Average
Exercise
Price
Aggregate
Intrinsic
Value
 (in millions)
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at January 1, 2016
11.0

$
12.19

 
 
Granted
1.1

$
23.24

 
 
Exercised
(0.2
)
$
9.22

 
 
Forfeited
(0.3
)
$
7.65

 
 
Outstanding at March 31, 2016
11.6

$
13.36

 
 
Vested and expected to vest at March 31, 2016
11.6

$
13.36

$
186.7

7.78
Exercisable at March 31, 2016
9.3

$
9.81

$
179.9

7.36

Cash received by the Company upon exercise of options for the three months ended March 31, 2016 was $6.7 million, inclusive of tax benefits related to exercises of $4.7 million. The future tax benefit related to exercises during the three months ended March 31, 2016 was $1.2 million. The Company may settle option exercises by issuing new shares, treasury shares or shares purchased on the open market. The intrinsic value of options exercised for the three months ended March 31, 2016 was $3.6 million.
At March 31, 2016, there was $10.2 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 2.5 years. Compensation expense is recognized for the fair value of the stock options over the requisite service period of the awards using the graded-vesting attribution method.
Restricted Stock Awards and Restricted Stock Units
During three months ended March 31, 2016, we issued 0.8 million shares of restricted stock and restricted stock units with a grant price of $23.24 per share. A portion of these awards vests ratably over three years. Other awards granted to certain members of management cliff vest over two and three year periods and are subject to accelerated vesting in the event of the award recipient's termination of employment under certain circumstances.
A summary of restricted stock and restricted stock unit award activity as of March 31, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
1.7

$
32.22

Granted
0.8

$
23.24

Vested

$

Forfeited

$

Outstanding at March 31, 2016
2.5

$
29.39


At March 31, 2016, there was $48.2 million of unamortized expense relating to unvested restricted stock awards and restricted stock units that is expected to be amortized over a weighted average period of 2.4 years. Compensation expense is recognized for the fair values of the awards over the requisite service period of the awards using the graded-vesting attribution method.
Performance Stock Awards and Performance Stock Units
During the three months ended March 31, 2016, the Company granted performance shares and performance share units (collectively referred to as "PSUs") to certain employees of the Company as part of their annual share compensation award.
PSUs are tied to the Company’s total shareholder return ("TSR") relative to the TSR of a selected industry peer group. Each award covers a three-year performance cycle starting January 1, 2016 through December 31, 2018 with a three-year service period vesting requirement. Awards will cliff vest upon meeting the applicable TSR thresholds and the three-year service requirement. The actual number of shares awarded is adjusted to between zero and 200% of the target award amount based upon achievement of pre-determined objectives. TSR relative to peers is considered a market condition under applicable authoritative guidance. 
A summary of performance stock and performance stock unit award activity as of March 31, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016

$

Granted
0.3

$
24.74

Vested

$

Forfeited

$

Outstanding at March 31, 2016
0.3

$
24.74


At March 31, 2016, there was $8.1 million of unamortized expense relating to unvested PSUs that is expected to be amortized over a weighted average period of 2.8 years. Compensation expense is recognized for the fair values of the awards over the requisite service period of the awards using the cliff-vesting attribution method.
Other Expense, Net
Other Expense, Net
OTHER EXPENSE, NET
 
Three Months Ended March 31,
 
2016
2015
Exchange losses, net
$
7.5

$
8.7

Other miscellaneous expense (income), net
0.5

(4.8
)
Total
$
8.0

$
3.9


Our net exchange losses for the three months ended March 31, 2016 and 2015 consisted of remeasurement losses on our Euro borrowings, partially offset by gains related to the remeasurement of intercompany transactions denominated in currencies different from the functional currency of the relevant subsidiary. Net exchange losses for the period also include the impacts of remeasurement losses related to the remeasurement of the net monetary assets of our Venezuelan subsidiary as discussed further in Note 20.
Other miscellaneous income, net included a gain for the three months ended March 31, 2015, resulting from the acquisition of an additional 25% interest in an equity method investee for a purchase price of $4.3 million. As a result of the acquisition, we obtained a controlling interest and recognized a gain of $5.4 million on the remeasurement of our previously held equity interest as of the acquisition date.
Income Taxes
Income Taxes
INCOME TAXES
Our effective income tax rates for the three months ended March 31, 2016 and 2015 are as follows:
 
Three Months Ended March 31,
 
2016
2015
Effective Tax Rate
32.3
%
2.5
%

The higher effective tax rate for the three months ended March 31, 2016 was primarily due to the 2015 favorable impact of the tax benefits associated with currency exchange losses.
Earnings (Loss) Per Common Share
Earnings (Loss) Per Common Share
EARNINGS PER COMMON SHARE
Basic earnings per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the exercise of outstanding stock options, restricted shares and performance shares. A reconciliation of our basic and diluted earnings per common share is as follows:
 
Three Months Ended March 31,
(In millions, except per share data)
2016
2015
Net income attributable to controlling interests
$
29.7

$
45.1

Basic weighted average shares outstanding
237.1

229.8

Diluted weighted average shares outstanding
241.6

237.0

Earnings per common share:
 
 
Basic net income per share
$
0.13

$
0.20

Diluted net income per share
$
0.12

$
0.19

The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 were 1.9 million and 0.0 million, respectively.
Accounts and Notes Receivable, Net
Accounts and Notes Receivable, Net
ACCOUNTS AND NOTES RECEIVABLE, NET
 
March 31, 2016
December 31, 2015
Accounts receivable—trade, net
$
681.4

$
647.2

Notes receivable
28.6

43.0

Other
82.7

75.6

Total
$
792.7

$
765.8


Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $11.0 million and $10.7 million at March 31, 2016 and December 31, 2015, respectively. Bad debt expense, within selling, general and administration expenses, was $0.1 million and $0.7 million for the three months ended March 31, 2016 and 2015, respectively.
Inventories
Inventories
INVENTORIES
 
March 31, 2016
December 31, 2015
Finished products
$
319.8

$
313.1

Semi-finished products
90.7

88.5

Raw materials and supplies
132.9

129.1

Total
$
543.4

$
530.7


Stores and supplies inventories of $21.2 million and $20.8 million at March 31, 2016 and December 31, 2015, respectively, were valued under the weighted average cost method.
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net
PROPERTY, PLANT AND EQUIPMENT, NET
Depreciation expense amounted to $41.7 million and $41.3 million for the three months ended March 31, 2016 and 2015, respectively.
 
March 31, 2016
December 31, 2015
Property, plant and equipment
$
1,894.6

$
1,855.3

Accumulated depreciation
(517.1
)
(472.4
)
Property, plant and equipment, net
$
1,377.5

$
1,382.9

Borrowings
Borrowings
BORROWINGS
Borrowings are summarized as follows:
 
March 31, 2016
December 31, 2015
Dollar Term Loan
$
2,036.8

$
2,042.5

Euro Term Loan
434.9

428.0

Dollar Senior Notes
750.0

750.0

Euro Senior Notes
279.5

274.4

Short-term and other borrowings
33.2

26.5

Unamortized original issue discount
(13.2
)
(14.0
)
Unamortized deferred financing costs, net
(62.4
)
(65.9
)
 
$
3,458.8

$
3,441.5

Less:
 
 
Short term borrowings
$
26.2

$
22.7

Current portion of long-term borrowings
27.5

27.4

Long-term debt
$
3,405.1

$
3,391.4


Senior Secured Credit Facilities, as amended
On February 3, 2014 (the "Amendment Effective Date"), Axalta Coating Systems Dutch B B.V. ("Dutch B B.V."), as "Dutch Borrower", and its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. ("Axalta US Holdings"), as "US Borrower", executed the second amendment to the Senior Secured Credit Facilities (the "Amendment" or the "Refinancing"). The Amendment (i) converted all of the outstanding Dollar Term Loans ($2,282.8 million) into a new class of term loans (the "New Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans (€397.0 million) into a new class of term loans (the "New Euro Term Loans" and, together with the New Dollar Term Loans and the Revolving Credit Facility (as defined herein), the "Senior Secured Credit Facilities"). The New Dollar Term Loans are subject to a floor of 1.00%, plus an applicable rate after the Amendment Effective Date. The applicable rate for such New Dollar Term Loans is 3.00% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 2.00% per annum for Base Rate Loans as defined in the Credit Agreement. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans is subject to a further 25 basis point reduction if the Total Net Leverage Ratio as defined in the credit agreement governing the Senior Secured Credit Facilities is less than or equal to 4.50:1.00. The New Euro Term Loans are also subject to a floor of 1.00%, plus an applicable rate after the Amendment Effective Date. The applicable rate for such New Euro Term Loans is 3.25% per annum for Eurocurrency Rate Loans. New Euro Term Loans may not be Base Rate Loans. The applicable rate is subject to a further 25 basis point reduction if the Total Net Leverage Ratio is less than or equal to 4.50:1.00. During the third quarter of 2014, our Total Net Leverage Ratio was confirmed to be less than 4.50:1.00. Consequently, the applicable rates were changed to 2.75% for the New Dollar Term Loans and 3.00% for the New Euro Term Loans through March 31, 2016. 
The Senior Secured Credit Facilities are secured by substantially all assets of Axalta Coating Systems Dutch A B. V. ("Dutch A B.V.") and the guarantors. The Dollar Term Loan and Euro Term Loan mature on February 1, 2020 and the Revolving Credit Facility matures on February 1, 2018. Principal is paid quarterly on both the Dollar Term Loan and the Euro Term Loan based on 1% per annum of the original principal amount with the unpaid balance due at maturity.
Interest is payable quarterly on both the New Dollar Term Loan and the New Euro Term Loan. Prior to the Amendment, interest on the Dollar Term Loan was subject to a floor of 1.25% for Eurocurrency Rate Loans plus an applicable rate of 3.50%. For Base Rate Loans, the interest was subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate, an Adjusted Eurocurrency Rate, or 2.25% plus an applicable rate of 2.50%. Interest on the Euro Term Loan, a Eurocurrency Loan, was subject to a floor of 1.25% plus an applicable rate of 4.00%.
Under the Senior Secured Credit Facilities, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of 1.00% for Eurocurrency Rate Loans plus an applicable rate of 3.50% (subject to an additional step-down to 3.25%). For Base Rate Loans, the interest is subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate, an Adjusted Eurocurrency Rate, or 2.00% plus an applicable rate of 2.50% (subject to an additional step-down to 2.25%).
Under circumstances described in the Credit Agreement, we may increase available revolving or term facility borrowings by up to $400.0 million plus an additional amount subject to the Company not exceeding a maximum first lien leverage ratio described in the Credit Agreement.
Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the make-whole provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $25.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow.
We are subject to customary negative covenants as well as a financial covenant which is a maximum First Lien Leverage Ratio. This financial covenant is applicable only when greater than 25% of the Revolving Credit Facility (including letters of credit not cash collateralized to at least 103%) is outstanding at the end of the fiscal quarter.
Deferred financing costs of $92.9 million and original issue discounts of $25.7 million were incurred at the inception of the Senior Secured Credit Facilities. These amounts are recorded as direct deductions of the associated debt obligations, with the exception of deferred financing costs related to the Revolving Credit Facility, which are classified within other assets on the accompanying condensed consolidated balance sheets as the associated debt has been undrawn since inception, and are amortized as interest expense over the life of the Senior Secured Credit Facilities. At March 31, 2016 and December 31, 2015, the remaining unamortized balances related to the deferred financing costs on the Senior Secured Credit Facilities were $47.3 million and $50.6 million, respectively.
Amortization expense related to deferred financing costs, net for the three months ended March 31, 2016 and 2015 was $3.3 million and $3.2 million, respectively.
Amortization expense related to original issue discounts was $0.8 million for both the three months ended March 31, 2016 and 2015.
At March 31, 2016 and December 31, 2015 there were no borrowings under the Revolving Credit Facility. At March 31, 2016 and December 31, 2015, letters of credit issued under the Revolving Credit Facility totaled $22.1 million and $24.9 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $377.9 million and $375.1 million at March 31, 2016 and December 31, 2015, respectively.
Significant Terms of the Senior Notes
On February 1, 2013, Dutch B B.V., as "Dutch Issuer", and Axalta US Holdings, as "US Issuer" (collectively the "Issuers") issued $750.0 million aggregate principal amount of 7.375% senior unsecured notes due 2021 (the "Dollar Senior Notes") and related guarantees thereof. Additionally, the Issuers issued €250.0 million aggregate principal amount of 5.750% senior secured notes due 2021 (the "Euro Senior Notes" and, together with the Dollar Senior Notes, the "Senior Notes") and related guarantees thereof. Cash fees related to the issuance of the Senior Notes were $33.1 million, are recorded as direct deductions of the associated debt obligations and are amortized into interest expense over the life of the Senior Notes. At March 31, 2016 and December 31, 2015, the remaining unamortized balance was $20.3 million and $21.3 million, respectively. The expense related to the amortization of the deferred financing costs was $1.0 million for both the three months ended March 31, 2016 and 2015.
The Senior Notes are unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries.
The indentures governing the Senior Notes contain covenants that restrict the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates.
(i) Euro Senior Notes
The Euro Senior Notes were sold at par and are due February 1, 2021. The Euro Senior Notes bear interest at 5.750% and are payable semi-annually on February 1 and August 1. Cash fees related to the issuance of the Euro Senior Notes were $10.2 million, are recorded as direct deductions of the associated debt obligations and are amortized into interest expense over the life of the Euro Senior Notes. At March 31, 2016 and December 31, 2015, the remaining unamortized balances were $6.2 million and $6.5 million, respectively.
We have the option to redeem all or part of the Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount):
Period
Euro Notes Percentage
2016
104.313
%
2017
102.875
%
2018
101.438
%
2019 and thereafter
100.000
%

Upon the occurrence of certain events constituting a change of control, holders of the Euro Senior Notes have the right to require us to repurchase all or any part of the Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The indebtedness evidenced by the Euro Senior Notes and related guarantees is secured on a first-lien basis by the same assets that secure the obligations under the Senior Secured Credit Facilities, subject to permitted liens and applicable local law limitations, is senior in right of payment to all future subordinated indebtedness of the Issuers, is equal in right of payment to all existing and future senior indebtedness of the Issuers and is effectively senior to any unsecured indebtedness of the Issuers, including the Dollar Senior Notes, to the extent of the value securing the Euro Senior Notes.
(ii) Dollar Senior Notes
The Dollar Senior Notes were sold at par and are due May 1, 2021. The Dollar Senior Notes bear interest at 7.375% and are payable semi-annually on February 1 and August 1. Cash fees related to the issuance of the Dollar Senior Notes were $22.9 million and are amortized into interest expense over the life of the Dollar Senior Notes. At March 31, 2016 and December 31, 2015, the remaining unamortized balances were $14.1 million and $14.8 million, respectively.
We have the option to redeem all or part of the Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount):
Period
Dollar Notes Percentage
2016
105.531
%
2017
103.688
%
2018
101.844
%
2019 and thereafter
100.000
%

Upon the occurrence of certain events constituting a change of control, holders of the Dollar Senior Notes have the right to require us to repurchase all or any part of the Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The indebtedness evidenced by the Dollar Senior Notes is senior unsecured indebtedness of the Issuers, is senior in right of payment to all future subordinated indebtedness of the Issuers and is equal in right of payment to all existing and future senior indebtedness of the Issuers. The Dollar Senior Notes are effectively subordinated to any secured indebtedness of the Issuers (including indebtedness of the Issuers outstanding under the Senior Secured Credit Facilities and the Euro Senior Notes) to the extent of the value of the assets securing such indebtedness.
Future repayments
Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2016.
Remainder of 2016
$
32.4

2017
29.6

2018
28.2

2019
27.7

2020
2,368.9

Thereafter
1,029.9

 
$
3,516.7

Fair Value Accounting
Fair Value Accounting
FAIR VALUE ACCOUNTING
Fair value of financial instruments
Available for sale securities - The fair values of available for sale securities at March 31, 2016 and December 31, 2015 were $3.9 million and $4.2 million, respectively. The fair value was based upon either Level 1 inputs when the securities are actively traded with quoted market prices or Level 2 when the securities are not frequently traded.
Long-term borrowings - The fair values of the Dollar Senior Notes and Euro Senior Notes at March 31, 2016 were $795.0 million and $290.1 million, respectively. The fair values at December 31, 2015 were $787.5 million and $285.4 million, respectively. The estimated fair values of these notes are based on recent trades, as reported by a third party pricing service. Due to the infrequency of trades of the Dollar Senior Notes and the Euro Senior Notes, these inputs are considered to be Level 2 inputs.
The fair values of the New Dollar Term Loans and the New Euro Term Loans at March 31, 2016 were $2,021.5 million and $437.7 million, respectively. The fair values at December 31, 2015 were $2,024.6 million and $427.5 million, respectively. The estimated fair values of the Dollar Term Loans and the Euro Term Loans are based on recent trades, as reported by a third party pricing service. Due to the infrequency of trades of the Dollar Term Loan and the Euro Term Loan, these inputs are considered to be Level 2 inputs.
Derivative Financial Instruments
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs.
During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps are in place until September 29, 2017. The interest rate swaps qualify and are designated as effective cash flow hedges.
The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in our condensed consolidated balance sheet:
 
March 31, 2016
December 31, 2015
Other assets:
 
 
Interest rate swaps
$

$
0.4

Total assets
$

$
0.4

Other liabilities:
 
 
Interest rate swaps
$
6.0

$
1.8

Total liabilities
$
6.0

$
1.8


The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheet:
 
March 31, 2016
December 31, 2015
Prepaid and other assets:
 
 
Foreign currency contracts
$

$
0.3

Total assets
$

$
0.3

Other accrued liabilities:
 
 
Foreign currency contracts
$
2.0

$

Total liabilities
$
2.0

$


For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.
The following tables set forth the locations and amounts recognized during the three months ended March 31, 2016 and 2015 for these cash flow hedges.
Derivatives in Cash Flow Hedging
Relationships in three months ended March 31, 2016:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gains) Losses 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
2.2

Interest expense, net
$
1.6

Interest expense, net
$
2.4

Derivatives in Cash Flow Hedging
Relationships in three months ended March 31, 2015:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gains) Losses 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
4.8

Interest expense, net
$
1.6

Interest expense, net
$
1.2


Also during the year ended December 31, 2013, we purchased a €300.0 million 1.5% interest rate cap on our Euro Term Loan that is in place until September 29, 2017. We paid a premium of $3.1 million for the interest rate cap. The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.
Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows:
 
 
Three Months Ended March 31,
Derivatives Not Designated as Hedging
Instruments under ASC 815
Location of (Gain) Loss Recognized in
Income on Derivatives
2016
2015
Foreign currency forward contract
Other expense, net
$
2.4

$
(1.8
)
Segments
Segments
SEGMENTS
The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information.
We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems.
Through our Transportation Coatings segment, we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed.
Our business serves four end-markets globally as follows: 
 
Three Months Ended March 31,
 
2016
2015
Performance Coatings
 
 
Refinish
$
378.7

$
393.2

Industrial
164.3

164.0

Total Net sales Performance Coatings
543.0

557.2

Transportation Coatings
 
 
Light Vehicle
329.4

333.2

Commercial Vehicle
83.2

98.8

Total Net sales Transportation Coatings
412.6

432.0

Total Net sales
$
955.6

$
989.2


Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment.
 
Performance
Coatings
Transportation
Coatings
Total
For the Three Months Ended March 31, 2016
 
 
 
Net sales (1)
$
543.0

$
412.6

$
955.6

Equity in earnings in unconsolidated affiliates
0.1

0.1

0.2

Adjusted EBITDA (2)
110.1

84.7

194.8

Investment in unconsolidated affiliates
4.1

11.5

15.6

 
Performance
Coatings
Transportation
Coatings
Total
For the Three Months Ended March 31, 2015
 
 
 
Net sales (1)
$
557.2

$
432.0

$
989.2

Equity in earnings in unconsolidated affiliates
0.1

0.3

0.4

Adjusted EBITDA (2)
107.1

74.9

182.0

Investment in unconsolidated affiliates
4.0

6.5

10.5

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and other unusual items impacting operating results. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance. Reconciliation of Adjusted EBITDA to income before income taxes follows:
 
Three Months Ended March 31,
 
2016
2015
Income before income taxes
$
45.2

$
47.9

Interest expense, net
50.1

50.0

Depreciation and amortization
76.0

72.6

EBITDA
171.3

170.5

Foreign exchange remeasurement losses (a)
7.5

8.7

Long-term employee benefit plan adjustments (b)
0.6

0.2

Termination benefits and other employee related costs (c)
1.9

3.7

Consulting and advisory fees (d)
3.0

3.1

Offering related costs (e)

1.4

Stock-based compensation (f)
10.2

1.8

Other adjustments (g)
1.8

(3.9
)
Dividends in respect of noncontrolling interest (h)
(1.5
)
(3.5
)
Adjusted EBITDA
$
194.8

$
182.0

(a)
Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies.
(b)
Eliminates the non-service cost components of long-term employee benefit costs.
(c)
Represents expenses primarily related to employee termination benefits and other employee-related costs including our initiative to improve overall cost structure within the European region as well as costs associated with our Axalta Way initiatives.
(d)
Represents fees paid to consultants for professional services primarily related to our Axalta Way cost-savings initiatives.
(e)
Represents costs associated with the offering of our common shares in the Carlyle Offerings.
(f)
Represents costs associated with stock-based compensation.
(g)
Represents costs for certain unusual or non-operational (gains) and losses, including a $5.4 million gain recognized during the three months ended March 31, 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest, equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on foreign currency derivative instruments and non-cash fair value inventory adjustments associated with our 2015 acquisitions.
(h)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned.
Shareholders' Equity
Shareholders' Equity
SHAREHOLDERS' EQUITY
The following tables present the change in total shareholders’ equity for the three months ended March 31, 2016 and 2015, respectively.
 
Total Axalta
Noncontrolling
Interests
Total
Balance January 1, 2016
$
1,073.7

$
67.5

$
1,141.2

Net income
29.7

0.9

30.6

Other comprehensive income, net of tax
13.8


13.8

Exercise of stock options
6.7


6.7

Recognition of stock-based compensation
10.2


10.2

Dividends paid to noncontrolling interests

(1.5
)
(1.5
)
Balance March 31, 2016
$
1,134.1

$
66.9

$
1,201.0

 
Total Axalta
Noncontrolling
Interests
Total
Balance January 1, 2015
$
1,044.7

$
67.3

$
1,112.0

Net income
45.1

1.6

46.7

Other comprehensive loss, net of tax
(112.1
)
(0.4
)
(112.5
)
Exercise of stock options
(0.6
)

(0.6
)
Recognition of stock-based compensation
1.8


1.8

Noncontrolling interest of acquired subsidiaries

4.3

4.3

Dividends paid to noncontrolling interests

(3.5
)
(3.5
)
Balance March 31, 2015
$
978.9

$
69.3

$
1,048.2

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
Unrealized
Currency
Translation
Adjustments
Long-term Employee Benefit
Adjustments
Unrealized
Gain (Loss) on
Securities
Unrealized
Gain (Losses) on
Derivatives
Accumulated
Other
Comprehensive
Income (loss)
December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

$
(3.2
)
$
(269.3
)
Current year deferrals to AOCI
15.7


(0.4
)
(2.4
)
12.9

Reclassifications from AOCI to Net income

(0.1
)

1.0

0.9

Net Change
15.7

(0.1
)
(0.4
)
(1.4
)
13.8

March 31, 2016
$
(217.1
)
$
(33.5
)
$
(0.3
)
$
(4.6
)
$
(255.5
)

The income tax benefit related to the changes in long-term employee benefits for the three months ended March 31, 2016 was $0.0 million. The cumulative income tax benefit related to the adjustments for long-term employee benefits at March 31, 2016 was $13.4 million. The income tax benefit related to the change in the unrealized loss on derivatives for the three months ended March 31, 2016 was $0.8 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at March 31, 2016 was $2.7 million.
 
Unrealized
Currency
Translation
Adjustments
Long-term
Employee
Benefit
Adjustments
Unrealized
Loss on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income
December 31, 2014
$
(72.1
)
$
(31.2
)
$
(0.2
)
$
0.2

$
(103.3
)
Current year deferrals to AOCI
(109.2
)

0.5

(1.4
)
(110.1
)
Reclassifications from AOCI to Net income

(0.4
)

(1.6
)
(2.0
)
Net Change
(109.2
)
(0.4
)
0.5

(3.0
)
(112.1
)
March 31, 2015
$
(181.3
)
$
(31.6
)
$
0.3

$
(2.8
)
$
(215.4
)

The income tax benefit related to the changes in long-term employee benefits for the three months ended March 31, 2015 was $0.8 million. The cumulative income tax benefit related to the adjustment for long-term employee benefits at March 31, 2015 was $14.1 million. The income tax benefit related to the change in the unrealized loss on derivatives for the three months ended March 31, 2015 was $1.8 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at March 31, 2015 was $1.6 million.
Venezuela
Foreign Currency Disclosure [Text Block]
VENEZUELA
Venezuela Devaluation
As a result of challenging economic conditions, Venezuela’s foreign currency exchange mechanisms have continued to develop which have impacted our Venezuela operations.
From December 31, 2014 through June 30, 2015, we used the Complementary System of Foreign Currency Administration (SICAD) rate of 12.0 Venezuelan bolivars to 1.0 U.S. dollar. At June 30, 2015, we changed the exchange rate we used to remeasure our Venezuelan bolivars from the SICAD rate to the Marginal Foreign Exchange System (SIMADI) rate of 197.7 Venezuelan bolivars to 1.0 U.S. dollar. We believed it was appropriate to move from using the SICAD rate to using the SIMADI rate at this date based on the culmination of relevant facts and circumstances, including our expectation that future dividend remittances would be made at the SIMADI rate.
In March 2016, the Venezuelan government enacted additional changes to its foreign currency exchange regime. The changes resulted in a reduction of its three-tiered exchange rate system to two tiers by eliminating the SICAD rate. The changes also devalued the official rate determined by DIPRO (formerly CENCOEX), to 10.0 Venezuelan bolivars to 1.0 U.S. dollar from 6.3 Venezuelan bolivars to 1.0 U.S. dollar, while also creating a replacement floating supplementary market exchange rate, DICOM, which will fully replace SIMADI. DICOM is intended to provide limited access to a free market rate of exchange. At March 31, 2016, the DIPRO exchange mechanism is now operational, however, SIMADI remained the operational exchange mechanism while financial institutions adjust their systems to allow for the capacity of U.S. dollars expected to be obtained through the use of DICOM. At March 31, 2016, DIPRO remained at 10.0 Venezuelan bolivars to 1.0 U.S. dollar and the exchange rates for SIMADI and DICOM were 270.5 Venezuelan bolivars to 1.0 U.S. dollar.
We believe that significant uncertainty still exists regarding the exchange mechanisms in Venezuela, including how any such mechanisms will operate in the future and the availability of U.S. dollars under each mechanism.
At March 31, 2016, we continue to believe that the SIMADI rate is the appropriate rate to use in the remeasurement of the monetary assets and liabilities of our Venezuelan subsidiary.
As a result of the devalued Venezuelan bolivar, we recorded currency exchange losses of $7.1 million for the three months ended March 31, 2016.
Venezuela Financial Results
As a result of economic uncertainty and the resulting impact on our operations, we re-evaluated the carrying value of long-lived assets for our Venezuelan subsidiary at December 31, 2015. Based on an analysis of estimated undiscounted future cash flows expected to result from the use of our productive long-lived assets with finite lives, we determined that their carrying values were recoverable. The recoverability was heavily dependent on continued demand and price assumptions of our local operations. Our price assumptions and the associated increases are expected to continue and are intended to allow us to keep pace with the changes in exchange rates and inflation. We believe these price increases are feasible given our market share, customer base and historical success of implementing price increases in similar situations in the past. With the exception of intercompany inventory purchases, our operations in Venezuela were and are expected to be entirely self-funded. Due to the ability of our Venezuelan operations to procure raw materials through Axalta subsidiaries, we do not foresee any impact on our Venezuelan subsidiary's ability to operate. We have no current need or intention to repatriate Venezuelan earnings and remain committed to the business for the foreseeable future based on our current expectations.
If our assumptions regarding continued demand and our ability to successfully implement and sustain price increases differ from actual results, or our ability to control the operations of our Venezuelan subsidiary change as a result of economic uncertainty or political instability, there is risk that our productive long-lived assets may be impaired. This could result in a material unfavorable impact to our results of operations and financial condition. At March 31, 2016, we believe that the demand and price assumptions used at December 31, 2015 continue to be reasonable.
At March 31, 2016 and December 31, 2015, our Venezuelan subsidiary had total assets of $141.0 million and $152.9 million, respectively, and total liabilities of $35.1 million and $42.2 million, respectively, which represent less than 3% of our consolidated assets and liabilities at the end of each respective period. Total liabilities includes $10.8 million and $9.2 million of intercompany trade liabilities designated in U.S. dollars at March 31, 2016 and December 31, 2015, respectively. At March 31, 2016 and December 31, 2015, total non-monetary assets, net, were $113.3 million and $112.4 million, respectively. For the three months ended March 31, 2016 and 2015, our Venezuelan subsidiary's net sales represented $9.9 million and $30.0 million of the Company's consolidated net sales, respectively.
Subsequent Events
Subsequent Events
SUBSEQUENT EVENTS
In April 2016, we voluntarily prepaid $100.0 million of the outstanding New Dollar Term Loans. As a result of the prepayment, we will record a pre-tax loss on extinguishment of approximately $2.3 million.
Recent Accounting Guidance (Policies)
New Accounting Pronouncements, Policy
In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation. This standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.
In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize the assets and liabilities arising from all leases (both finance and operating) on the balance sheet. In addition to this main provision, this standard included a number of additional changes to lease accounting. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.
In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", which requires that all deferred tax assets and liabilities be classified as non-current on the balance sheet. The standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We intend to early adopt this standard during 2016. The impacts to the accompanying condensed consolidated balance sheets would have resulted in corresponding net reclassifications from current assets and liabilities to non-current assets and liabilities at March 31, 2016 and December 31, 2015 of $47.7 million and $62.9 million, respectively.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the guidance that an entity should use related to revenue recognition. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies will be allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.
We have determined that all other recently issued accounting standards will not have a material impact on our interim condensed consolidated financial statements or do not apply to our operations.
Goodwill and Identifiable Intangible Assets (Tables)
The following table shows changes in the carrying amount of goodwill from December 31, 2015 to March 31, 2016 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
At December 31, 2015
$
866.1

$
62.1

$
928.2

Foreign currency translation
13.0

0.9

13.9

March 31, 2016
$
879.1

$
63.0

$
942.1

The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
March 31, 2016
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
413.8

$
(127.6
)
$
286.2

10.0
Trademarks - indefinite-lived
284.4


284.4

Indefinite
Trademarks - definite-lived
45.8

(9.3
)
36.5

14.8
Customer relationships
681.5

(112.0
)
569.5

19.3
Non-compete agreements
1.9

(1.3
)
0.6

4.6
Total
$
1,427.4

$
(250.2
)
$
1,177.2

 
December 31, 2015
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
413.0

$
(117.2
)
$
295.8

10.0
Trademarks—indefinite-lived
284.4


284.4

Indefinite
Trademarks—definite-lived
45.2

(8.5
)
36.7

14.7
Customer relationships
676.1

(102.1
)
574.0

19.3
Non-compete agreements
1.9

(1.2
)
0.7

4.6
Total
$
1,420.6

$
(229.0
)
$
1,191.6

 
The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2016 and each of the succeeding four years is:
Remainder of 2016
$
60.4

2017
$
80.2

2018
$
80.1

2019
$
80.1

2020
$
80.0

Restructuring (Tables)
Restructuring and Related Costs
The following table summarizes the activities related to the restructuring reserves, recorded within other accrued liabilities, and expenses from December 31, 2015 to March 31, 2016:
 
2016 Activity
Balance at December 31, 2015
$
41.3

Expense Recorded
0.5

Payments Made
(11.7
)
Foreign Currency Changes
0.7

Balance at March 31, 2016
$
30.8

Long-term Employee Benefits (Tables)
Schedule of Net Benefit Costs
The following table sets forth the components of net periodic benefit cost for the three months ended March 31, 2016 and 2015.
 
Three Months Ended March 31,
 
2016
2015
Components of net periodic benefit cost:
 
 
Net periodic benefit cost:
 
 
Service cost
$
2.5

$
3.1

Interest cost
3.9

4.6

Expected return on plan assets
(3.2
)
(3.7
)
Amortization of actuarial (gain) loss, net
(0.1
)
0.3

Amortization of prior service credit, net

(0.1
)
Net periodic benefit cost
$
3.1

$
4.2

Stock-based Compensation Stock-based Compensation (Tables)
Principal weighted average assumptions used in applying the Black-Scholes model were as follows:
 
2016 Grants
Expected Term
6.00 years

Volatility
21.63
%
Dividend Yield

Discount Rate
1.45
%
A summary of stock option award activity as of March 31, 2016 and changes during the period then ended, is presented below:
 
Awards
(in millions)
Weighted-
Average
Exercise
Price
Aggregate
Intrinsic
Value
 (in millions)
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at January 1, 2016
11.0

$
12.19

 
 
Granted
1.1

$
23.24

 
 
Exercised
(0.2
)
$
9.22

 
 
Forfeited
(0.3
)
$
7.65

 
 
Outstanding at March 31, 2016
11.6

$
13.36

 
 
Vested and expected to vest at March 31, 2016
11.6

$
13.36

$
186.7

7.78
Exercisable at March 31, 2016
9.3

$
9.81

$
179.9

7.36
A summary of restricted stock and restricted stock unit award activity as of March 31, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
1.7

$
32.22

Granted
0.8

$
23.24

Vested

$

Forfeited

$

Outstanding at March 31, 2016
2.5

$
29.39

A summary of performance stock and performance stock unit award activity as of March 31, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016

$

Granted
0.3

$
24.74

Vested

$

Forfeited

$

Outstanding at March 31, 2016
0.3

$
24.74

Other Expense, Net (Tables)
Schedule of Other Nonoperating Income (Expense)
 
Three Months Ended March 31,
 
2016
2015
Exchange losses, net
$
7.5

$
8.7

Other miscellaneous expense (income), net
0.5

(4.8
)
Total
$
8.0

$
3.9

Income Taxes Income Taxes (Tables)
Schedule of Effective Income Tax Rate Reconciliation
Our effective income tax rates for the three months ended March 31, 2016 and 2015 are as follows:
 
Three Months Ended March 31,
 
2016
2015
Effective Tax Rate
32.3
%
2.5
%
Earnings (Loss) Per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
A reconciliation of our basic and diluted earnings per common share is as follows:
 
Three Months Ended March 31,
(In millions, except per share data)
2016
2015
Net income attributable to controlling interests
$
29.7

$
45.1

Basic weighted average shares outstanding
237.1

229.8

Diluted weighted average shares outstanding
241.6

237.0

Earnings per common share:
 
 
Basic net income per share
$
0.13

$
0.20

Diluted net income per share
$
0.12

$
0.19

Accounts and Notes Receivable, Net (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable
 
March 31, 2016
December 31, 2015
Accounts receivable—trade, net
$
681.4

$
647.2

Notes receivable
28.6

43.0

Other
82.7

75.6

Total
$
792.7

$
765.8

Inventories (Tables)
Schedule of Inventory, Current
 
March 31, 2016
December 31, 2015
Finished products
$
319.8

$
313.1

Semi-finished products
90.7

88.5

Raw materials and supplies
132.9

129.1

Total
$
543.4

$
530.7

Property, Plant and Equipment, Net (Tables)
Property, Plant and Equipment
 
March 31, 2016
December 31, 2015
Property, plant and equipment
$
1,894.6

$
1,855.3

Accumulated depreciation
(517.1
)
(472.4
)
Property, plant and equipment, net
$
1,377.5

$
1,382.9

Borrowings (Tables)
Borrowings are summarized as follows:
 
March 31, 2016
December 31, 2015
Dollar Term Loan
$
2,036.8

$
2,042.5

Euro Term Loan
434.9

428.0

Dollar Senior Notes
750.0

750.0

Euro Senior Notes
279.5

274.4

Short-term and other borrowings
33.2

26.5

Unamortized original issue discount
(13.2
)
(14.0
)
Unamortized deferred financing costs, net
(62.4
)
(65.9
)
 
$
3,458.8

$
3,441.5

Less:
 
 
Short term borrowings
$
26.2

$
22.7

Current portion of long-term borrowings
27.5

27.4

Long-term debt
$
3,405.1

$
3,391.4

Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2016.
Remainder of 2016
$
32.4

2017
29.6

2018
28.2

2019
27.7

2020
2,368.9

Thereafter
1,029.9

 
$
3,516.7

We have the option to redeem all or part of the Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount):
Period
Euro Notes Percentage
2016
104.313
%
2017
102.875
%
2018
101.438
%
2019 and thereafter
100.000
%
We have the option to redeem all or part of the Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount):
Period
Dollar Notes Percentage
2016
105.531
%
2017
103.688
%
2018
101.844
%
2019 and thereafter
100.000
%
Derivative Financial Instruments (Tables)
The following tables set forth the locations and amounts recognized during the three months ended March 31, 2016 and 2015 for these cash flow hedges.
Derivatives in Cash Flow Hedging
Relationships in three months ended March 31, 2016:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gains) Losses 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
2.2

Interest expense, net
$
1.6

Interest expense, net
$
2.4

Derivatives in Cash Flow Hedging
Relationships in three months ended March 31, 2015:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gains) Losses 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
4.8

Interest expense, net
$
1.6

Interest expense, net
$
1.2

Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows:
 
 
Three Months Ended March 31,
Derivatives Not Designated as Hedging
Instruments under ASC 815
Location of (Gain) Loss Recognized in
Income on Derivatives
2016
2015
Foreign currency forward contract
Other expense, net
$
2.4

$
(1.8
)
The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in our condensed consolidated balance sheet:
 
March 31, 2016
December 31, 2015
Other assets:
 
 
Interest rate swaps
$

$
0.4

Total assets
$

$
0.4

Other liabilities:
 
 
Interest rate swaps
$
6.0

$
1.8

Total liabilities
$
6.0

$
1.8

The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheet:
 
March 31, 2016
December 31, 2015
Prepaid and other assets:
 
 
Foreign currency contracts
$

$
0.3

Total assets
$

$
0.3

Other accrued liabilities:
 
 
Foreign currency contracts
$
2.0

$

Total liabilities
$
2.0

$

Segments (Tables)
Our business serves four end-markets globally as follows: 
 
Three Months Ended March 31,
 
2016
2015
Performance Coatings
 
 
Refinish
$
378.7

$
393.2

Industrial
164.3

164.0

Total Net sales Performance Coatings
543.0

557.2

Transportation Coatings
 
 
Light Vehicle
329.4

333.2

Commercial Vehicle
83.2

98.8

Total Net sales Transportation Coatings
412.6

432.0

Total Net sales
$
955.6

$
989.2

 
Performance
Coatings
Transportation
Coatings
Total
For the Three Months Ended March 31, 2016
 
 
 
Net sales (1)
$
543.0

$
412.6

$
955.6

Equity in earnings in unconsolidated affiliates
0.1

0.1

0.2

Adjusted EBITDA (2)
110.1

84.7

194.8

Investment in unconsolidated affiliates
4.1

11.5

15.6

 
Performance
Coatings
Transportation
Coatings
Total
For the Three Months Ended March 31, 2015
 
 
 
Net sales (1)
$
557.2

$
432.0

$
989.2

Equity in earnings in unconsolidated affiliates
0.1

0.3

0.4

Adjusted EBITDA (2)
107.1

74.9

182.0

Investment in unconsolidated affiliates
4.0

6.5

10.5

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and other unusual items impacting operating results. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance.
Reconciliation of Adjusted EBITDA to income before income taxes follows:
 
Three Months Ended March 31,
 
2016
2015
Income before income taxes
$
45.2

$
47.9

Interest expense, net
50.1

50.0

Depreciation and amortization
76.0

72.6

EBITDA
171.3

170.5

Foreign exchange remeasurement losses (a)
7.5

8.7

Long-term employee benefit plan adjustments (b)
0.6

0.2

Termination benefits and other employee related costs (c)
1.9

3.7

Consulting and advisory fees (d)
3.0

3.1

Offering related costs (e)

1.4

Stock-based compensation (f)
10.2

1.8

Other adjustments (g)
1.8

(3.9
)
Dividends in respect of noncontrolling interest (h)
(1.5
)
(3.5
)
Adjusted EBITDA
$
194.8

$
182.0

(a)
Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies.
(b)
Eliminates the non-service cost components of long-term employee benefit costs.
(c)
Represents expenses primarily related to employee termination benefits and other employee-related costs including our initiative to improve overall cost structure within the European region as well as costs associated with our Axalta Way initiatives.
(d)
Represents fees paid to consultants for professional services primarily related to our Axalta Way cost-savings initiatives.
(e)
Represents costs associated with the offering of our common shares in the Carlyle Offerings.
(f)
Represents costs associated with stock-based compensation.
(g)
Represents costs for certain unusual or non-operational (gains) and losses, including a $5.4 million gain recognized during the three months ended March 31, 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest, equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on foreign currency derivative instruments and non-cash fair value inventory adjustments associated with our 2015 acquisitions.
(h)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned.
Shareholders' Equity (Tables)
Schedule of Stockholders Equity
The following tables present the change in total shareholders’ equity for the three months ended March 31, 2016 and 2015, respectively.
 
Total Axalta
Noncontrolling
Interests
Total
Balance January 1, 2016
$
1,073.7

$
67.5

$
1,141.2

Net income
29.7

0.9

30.6

Other comprehensive income, net of tax
13.8


13.8

Exercise of stock options
6.7


6.7

Recognition of stock-based compensation
10.2


10.2

Dividends paid to noncontrolling interests

(1.5
)
(1.5
)
Balance March 31, 2016
$
1,134.1

$
66.9

$
1,201.0

 
Total Axalta
Noncontrolling
Interests
Total
Balance January 1, 2015
$
1,044.7

$
67.3

$
1,112.0

Net income
45.1

1.6

46.7

Other comprehensive loss, net of tax
(112.1
)
(0.4
)
(112.5
)
Exercise of stock options
(0.6
)

(0.6
)
Recognition of stock-based compensation
1.8


1.8

Noncontrolling interest of acquired subsidiaries

4.3

4.3

Dividends paid to noncontrolling interests

(3.5
)
(3.5
)
Balance March 31, 2015
$
978.9

$
69.3

$
1,048.2

Accumulated Other Comprehensive Income (Loss) (Tables)
Schedule of Accumulated Other Comprehensive Income
 
Unrealized
Currency
Translation
Adjustments
Long-term Employee Benefit
Adjustments
Unrealized
Gain (Loss) on
Securities
Unrealized
Gain (Losses) on
Derivatives
Accumulated
Other
Comprehensive
Income (loss)
December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

$
(3.2
)
$
(269.3
)
Current year deferrals to AOCI
15.7


(0.4
)
(2.4
)
12.9

Reclassifications from AOCI to Net income

(0.1
)

1.0

0.9

Net Change
15.7

(0.1
)
(0.4
)
(1.4
)
13.8

March 31, 2016
$
(217.1
)
$
(33.5
)
$
(0.3
)
$
(4.6
)
$
(255.5
)
 
Unrealized
Currency
Translation
Adjustments
Long-term
Employee
Benefit
Adjustments
Unrealized
Loss on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income
December 31, 2014
$
(72.1
)
$
(31.2
)
$
(0.2
)
$
0.2

$
(103.3
)
Current year deferrals to AOCI
(109.2
)

0.5

(1.4
)
(110.1
)
Reclassifications from AOCI to Net income

(0.4
)

(1.6
)
(2.0
)
Net Change
(109.2
)
(0.4
)
0.5

(3.0
)
(112.1
)
March 31, 2015
$
(181.3
)
$
(31.6
)
$
0.3

$
(2.8
)
$
(215.4
)
Basis of Presentation of the Condensed Consolidated Financial Statements Basis of Presentation of the Condensed Consolidated Financial Statements (Details) (USD $)
0 Months Ended 14 Months Ended 1 Months Ended
Nov. 11, 2014
IPO [Member]
Common Stock [Member]
Nov. 11, 2014
IPO [Member]
Common Stock [Member]
Dec. 31, 2015
The Carlyle Group L.P. [Member]
Aug. 31, 2015
The Carlyle Group L.P. [Member]
Secondary Offering [Member]
Apr. 30, 2015
The Carlyle Group L.P. [Member]
Secondary Offering [Member]
Apr. 30, 2015
The Carlyle Group L.P. [Member]
Private Placement [Member]
Subsidiary, Sale of Stock [Line Items]
 
 
 
 
 
 
Number of shares issued in transaction
57,500,000 
 
 
34,500,000 
46,000,000 
20,000,000 
Sale of stock, price per share (dollars per share)
 
$ 19.50 
 
$ 29.75 
$ 28.00 
$ 28.00 
Proceeds from issuance of common stock
 
 
$ 0 
 
 
 
Recent Accounting Guidance (Details) (New Accounting Pronouncement, Early Adoption, Effect [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
New Accounting Pronouncement, Early Adoption, Effect [Member]
 
 
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
Deferred tax assets, net
$ (47.7)
$ (62.9)
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Goodwill [Roll Forward]
 
Goodwill, beginning balance
$ 928.2 
Foreign currency translation
13.9 
Goodwill, ending balance
942.1 
Performance Coatings [Member]
 
Goodwill [Roll Forward]
 
Goodwill, beginning balance
866.1 
Foreign currency translation
13.0 
Goodwill, ending balance
879.1 
Transportation Coatings [Member]
 
Goodwill [Roll Forward]
 
Goodwill, beginning balance
62.1 
Foreign currency translation
0.9 
Goodwill, ending balance
$ 63.0 
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
$ 1,427.4 
$ 1,420.6 
Accumulated Amortization
(250.2)
(229.0)
Net Book Value, definite-lived
1,177.2 
1,191.6 
Trademarks [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Net Book Value, indefinite-lived
284.4 
284.4 
Technology-Based Intangible Assets [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
413.8 
413.0 
Accumulated Amortization
(127.6)
(117.2)
Net Book Value, definite-lived
286.2 
295.8 
Weighted average amortization periods (years)
10 years 
10 years 
Trademarks [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
45.8 
45.2 
Accumulated Amortization
(9.3)
(8.5)
Net Book Value, definite-lived
36.5 
36.7 
Weighted average amortization periods (years)
14 years 9 months 
14 years 8 months 
Customer Relationships [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
681.5 
676.1 
Accumulated Amortization
(112.0)
(102.1)
Net Book Value, definite-lived
569.5 
574.0 
Weighted average amortization periods (years)
19 years 4 months 
19 years 4 months 
Noncompete Agreements [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
1.9 
1.9 
Accumulated Amortization
(1.3)
(1.2)
Net Book Value, definite-lived
$ 0.6 
$ 0.7 
Weighted average amortization periods (years)
4 years 7 months 
4 years 7 months 
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
Remainder of 2016
$ 60.4 
2017
80.2 
2018
80.1 
2019
80.1 
2020
$ 80.0 
Restructuring - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring costs
$ 0.5 
$ 2.2 
Minimum [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Payment term (in months)
12 months 
 
Maximum [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Payment term (in months)
15 months 
 
Restructuring - Restructuring Reserve (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Restructuring Reserve [Roll Forward]
 
 
Beginning balance
$ 41.3 
 
Expense Recorded
0.5 
2.2 
Payments Made
(11.7)
 
Foreign Currency Changes
0.7 
 
Ending balance
$ 30.8 
 
Commitments and Contingencies (Details) (USD $)
3 Months Ended
Mar. 31, 2016
lease
Dec. 31, 2015
Loss Contingencies [Line Items]
 
 
Accrued in period
$ 0 
$ 0 
Number of built-to-suit lease arrangements
 
Build To Suit Lease [Member]
 
 
Loss Contingencies [Line Items]
 
 
Build-to-suit construction in progress
17,700,000 
 
Total estimated cost of build-to-suit construction in progress
$ 54,800,000 
 
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Pension Plan [Member]
 
 
Net periodic benefit cost:
 
 
Service cost
$ 2.5 
$ 3.1 
Interest cost
3.9 
4.6 
Expected return on plan assets
(3.2)
(3.7)
Amortization of actuarial (gain) loss, net
(0.1)
0.3 
Amortization of prior service credit, net
(0.1)
Net periodic benefit (gain) cost
$ 3.1 
$ 4.2 
Long-term Employee Benefits - Additional Information (Details) (Other Postretirement Benefit Plan [Member], USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2016
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Net periodic benefit gains
$ 900,000 
 
Liability
 
$ 0 
Stock-based Compensation - Additional Information (Details) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended
Feb. 29, 2016
Mar. 31, 2016
Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
 
$ 10.2 
$ 1.8 
Tax benefit from compensation expense
 
3.9 
0.5 
Option grants in period
1,100,000 
1,100,000 
 
Option strike price
$ 23.24 
$ 23.24 
 
Forfeiture rate
 
0.00% 
 
Options grant date fair value (dollars per share)
 
$ 5.68 
 
Proceeds from stock options exercised and tax benefits
 
6.7 
Tax benefit from exercise of stock options
 
4.7 
 
Future tax benefit on exercises during the period
 
1.2 
 
Intrinsic value of exercises in period
 
3.6 
 
Compensation not yet recognized
 
10.2 
 
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Actual award percent
 
0.00% 
 
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Actual award percent
 
200.00% 
 
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Restricted stock grants in period
300,000 
300,000 
 
Restricted stock grant date fair value (dollars per share)
$ 24.74 
$ 24.74 
 
Period for recognition of compensation not yet recognized
 
2 years 9 months 15 days 
 
Award vesting period (in years)
 
3 years 
 
Requisite service period (in years)
 
3 years 
 
Compensation not yet recognized
 
8.1 
 
Employee Stock Option [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Option life
 
10 years 
 
Expected term (in years)
 
6 years 
 
Dividend yield
 
0.00% 
 
Period for recognition of compensation not yet recognized
 
2 years 6 months 3 days 
 
Restricted Stock and Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Restricted stock grants in period
 
800,000 
 
Restricted stock grant date fair value (dollars per share)
 
$ 23.24 
 
Period for recognition of compensation not yet recognized
 
2 years 4 months 24 days 
 
Compensation not yet recognized
 
$ 48.2 
 
Restricted Stock and Restricted Stock Units [Member] |
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Award vesting period (in years)
 
2 years 
 
Restricted Stock and Restricted Stock Units [Member] |
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Award vesting period (in years)
 
3 years 
 
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Restricted stock grants in period
800,000 
 
 
Restricted stock grant date fair value (dollars per share)
$ 23.24 
 
 
2014 Plan [Member] |
Employee Stock Option [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected term (in years)
 
6 years 
 
Dividend yield
 
0.00% 
 
Stock-based Compensation - Schedule of Share-based Payment Award, Stock Options Assumptions (Details) (Employee Stock Option [Member])
3 Months Ended
Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Expected Term
6 years 
Dividend Yield
0.00% 
2014 Plan [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Expected Term
6 years 
Volatility
21.63% 
Dividend Yield
0.00% 
Discount Rate
1.45% 
Stock-based Compensation - Schedule of Stock Options Roll Forward (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
1 Months Ended 3 Months Ended
Feb. 29, 2016
Mar. 31, 2016
Awards (in millions)
 
 
Beginning balance
 
11.0 
Granted
1.1 
1.1 
Exercised
 
(0.2)
Forfeited
 
(0.3)
Ending balance
 
11.6 
Weighted- Average Exercise Price
 
 
Beginning balance (in dollars per share)
 
$ 12.19 
Granted (in dollars per share)
$ 23.24 
$ 23.24 
Exercised (in dollars per share)
 
$ 9.22 
Forfeited (in dollars per share)
 
$ 7.65 
Ending balance (in dollars per share)
 
$ 13.36 
Vested and Expected to Vest
 
 
Vested and expected to vest, shares
 
11.6 
Vested and expected to vest, weighted average exercise price (in dollars per share)
 
$ 13.36 
Vested and expected to vest, aggregate intrinsic value
 
$ 186.7 
Vested and expected to vest, weighted average remaining contractual term
 
7 years 9 months 11 days 
Exercisable
 
 
Exercisable, shares
 
9.3 
Exercisable, weighted average exercise price (in dollars per share)
 
$ 9.81 
Exercisable, aggregate intrinsic value
 
$ 179.9 
Exercisable, weighted average remaining contractual term
 
7 years 4 months 11 days 
Stock-based Compensation - Schedule of Share-based Compensation, Restricted Stock and Restricted Units Activity (Details) (Restricted Stock and Restricted Stock Units [Member], USD $)
3 Months Ended
Mar. 31, 2016
Restricted Stock and Restricted Stock Units [Member]
 
Awards (millions)
 
Beginning balance
1,700,000 
Granted
800,000 
Vested
Forfeited
Ending balance
2,500,000 
Weighted-Average Fair Value
 
Beginning balance (weighted average fair value)
$ 32.22 
Granted (weighted average fair value)
$ 23.24 
Vested (weighted average fair value)
$ 0.00 
Forfeited (weighted average fair value)
$ 0.00 
Ending balance (weighted average fair value)
$ 29.39 
Stock-based Compensation - Schedule of Share-based Compensation, Performance Grants (Details) (Restricted Stock and Restricted Stock Units [Member], USD $)
1 Months Ended 3 Months Ended
Feb. 29, 2016
Mar. 31, 2016
Restricted Stock and Restricted Stock Units [Member]
 
 
Awards (millions)
 
 
Beginning balance
 
Granted
300,000.0 
300,000 
Vested
 
Forfeited
 
Ending balance
 
300,000 
Weighted-Average Fair Value
 
 
Beginning balance (weighted average fair value)
 
$ 0.00 
Granted (weighted average fair value)
$ 24.74 
$ 24.74 
Vested (weighted average fair value)
 
$ 0.00 
Forfeited (weighted average fair value)
 
$ 0.00 
Ending balance (weighted average fair value)
 
$ 24.74 
Other Expense, Net - Schedule of Other Non-operating Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Other Income and Expenses [Abstract]
 
 
Exchange losses, net
$ 7.5 
$ 8.7 
Other miscellaneous expense (income), net
0.5 
(4.8)
Total
$ 8.0 
$ 3.9 
Other Expense, Net - Additional Information (Details) (Equity Method Investee [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Equity Method Investee [Member]
 
Other Income Expense [Line Items]
 
Additional interest purchased
25.00% 
Business combination, consideration transferred
$ 4.3 
Equity method investments, remeasurement gain
$ 5.4 
Income Taxes (Details)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Tax Disclosure [Abstract]
 
 
Effective income tax rate, percent
32.30% 
2.50% 
Earnings (Loss) Per Common Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Earnings Per Share [Abstract]
 
 
Net income attributable to controlling interests
$ 29.7 
$ 45.1 
Basic weighted average shares outstanding (in shares)
237.1 
229.8 
Diluted weighted average shares outstanding (in shares)
241.6 
237.0 
Earnings per common share:
 
 
Basic net income (loss) per share (dollars per share)
$ 0.13 
$ 0.20 
Diluted net income (loss) per share (dollars per share)
$ 0.12 
$ 0.19 
Antidilutive securities excluded from computation of earnings per share (in shares)
1.9 
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Receivables [Abstract]
 
 
Accounts receivable—trade, net
$ 681.4 
$ 647.2 
Notes receivable
28.6 
43.0 
Other
82.7 
75.6 
Total
$ 792.7 
$ 765.8 
Accounts and Notes Receivable, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Receivables [Abstract]
 
 
 
Allowance for doubtful accounts
$ 11.0 
 
$ 10.7 
Bad debt expense net of recoveries
$ 0.1 
$ 0.7 
 
Inventories - Schedule of Inventory (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Finished products
$ 319.8 
$ 313.1 
Semi-finished products
90.7 
88.5 
Raw materials and supplies
132.9 
129.1 
Inventories
$ 543.4 
$ 530.7 
Inventories - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Stores and supplies inventories
$ 21.2 
$ 20.8 
Property, Plant and Equipment, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Property, Plant and Equipment [Abstract]
 
 
Depreciation
$ 41.7 
$ 41.3 
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Property, Plant and Equipment [Abstract]
 
 
Property, plant and equipment
$ 1,894.6 
$ 1,855.3 
Accumulated depreciation
(517.1)
(472.4)
Property, plant and equipment, net
$ 1,377.5 
$ 1,382.9 
Borrowings - Schedule of Debt (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Short-term and Other Borrowings
$ 33.2 
$ 26.5 
Unamortized original issue discount
(13.2)
(14.0)
Unamortized deferred financing costs, net
(62.4)
(65.9)
Debt and Capital Lease Obligations
3,458.8 
3,441.5 
Short term borrowings
26.2 
22.7 
Current portion of long-term borrowings
27.5 
27.4 
Long-term borrowings
3,405.1 
3,391.4 
Dollar Term Loan Due 2020 [Member]
 
 
Debt Instrument [Line Items]
 
 
Term loan
2,036.8 
2,042.5 
Euro Term Loan Due 2020 [Member]
 
 
Debt Instrument [Line Items]
 
 
Term loan
434.9 
428.0 
Dollar Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
750.0 
750.0 
Euro Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
$ 279.5 
$ 274.4 
Borrowings - Senior Secured Credit Facilities (Details)
0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 21 Months Ended 0 Months Ended 21 Months Ended 0 Months Ended
Feb. 3, 2014
USD ($)
Sep. 30, 2014
Mar. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Feb. 3, 2014
USD ($)
Mar. 31, 2016
Senior Secured Credit Facilities [Member]
USD ($)
Dec. 31, 2015
Senior Secured Credit Facilities [Member]
USD ($)
Feb. 3, 2014
Revolving Credit Facility [Member]
Mar. 31, 2016
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2015
Revolving Credit Facility [Member]
USD ($)
Mar. 31, 2016
Senior Secured Credit Facilities [Member]
USD ($)
Mar. 31, 2015
Senior Secured Credit Facilities [Member]
USD ($)
Feb. 3, 2014
Senior Secured Credit Facilities [Member]
USD ($)
Feb. 3, 2014
Interest Rate Floor [Member]
Senior Secured Credit Facilities [Member]
Feb. 3, 2014
Interest Rate Floor [Member]
Senior Secured Credit Facilities [Member]
Feb. 3, 2014
Interest Rate Floor [Member]
Eurocurrency Rate Loans [Member]
Senior Secured Credit Facilities [Member]
Feb. 3, 2014
Base Rate [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Base Rate [Member]
Senior Secured Credit Facilities [Member]
Feb. 3, 2014
Prime Rate [Member]
Adjusted Euro Currency Rate [Member]
Feb. 3, 2014
Prime Rate [Member]
Adjusted Euro Currency Rate [Member]
Senior Secured Credit Facilities [Member]
Feb. 3, 2014
Prime Rate [Member]
Adjusted Euro Currency Rate [Member]
Senior Secured Credit Facilities [Member]
Mar. 31, 2016
Dollar Term Loan Due 2020 [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Eurocurrency Rate Loans [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
EUR (€)
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Mar. 31, 2016
New Dollar Term Loan [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Interest Rate Floor [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Base Rate [Member]
Feb. 3, 2014
New Euro Term Loan [Member]
Mar. 31, 2016
New Euro Term Loan [Member]
Feb. 3, 2014
New Euro Term Loan [Member]
Eurocurrency Rate Loans [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, long-term and short-term, combined amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,282,800,000 
 
 
 
€ 397,000,000 
 
 
 
 
 
 
 
 
 
 
Debt instrument, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
3.50% 
 
1.00% 
0.50% 
0.50% 
 
2.00% 
 
 
 
3.50% 
1.25% 
 
 
2.50% 
 
 
2.75% 
3.00% 
1.00% 
2.00% 
 
3.00% 
3.25% 
Debt instrument covenant maximum consolidated leverage ratio
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
 
 
 
 
4.50 
 
 
Debt instrument, interest rate, effective percentage rate range, minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.00% 
 
 
 
 
 
 
1.00% 
 
 
Debt instrument periodic payment principal percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument basis spread reduced on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.25% 
 
 
 
2.25% 
 
2.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, stated percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
 
 
 
 
 
 
 
 
Debt instrument, basis spread on additional variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from maturities, prepayments and calls of other investments (more than)
25,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage on excess cash flow for mandatory prepayments of debt
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Decrease in percentage on excess cash flow for mandatory prepayments of debt
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage on first lien leverage ratio for mandatory prepayments of debt
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First lien leverage ratio upper limit
4.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First lien leverage ratio lower limit
3.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, percent of credit facility outstanding for financial covenant to be applicable
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, percent of letters of credit not cash collateralized for financial covenant to be applicable
103.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred finance costs, net
 
 
62,400,000 
65,900,000 
 
47,300,000 
50,600,000 
 
 
 
 
 
92,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized original issue discount
 
 
13,200,000 
14,000,000 
 
 
 
 
 
 
 
 
25,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of financing costs
 
 
 
 
 
 
 
 
 
 
3,300,000 
3,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of debt discount (premium)
 
 
 
 
 
 
 
 
 
 
800,000 
800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum amount outstanding during period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding, amount
 
 
 
 
 
 
 
 
22,100,000 
24,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
 
$ 377,900,000 
$ 375,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, maturity date
 
 
 
 
 
 
 
Feb. 01, 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 01, 2020 
 
 
 
Feb. 01, 2020 
 
 
 
 
 
 
 
 
 
 
 
Borrowings - Senior Notes (Details)
0 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended
Feb. 1, 2013
7.375% Senior Unsecured Notes Due 2021 [Member]
Feb. 1, 2013
7.375% Senior Unsecured Notes Due 2021 [Member]
USD ($)
Feb. 1, 2013
5.750% Senior Secured Notes Due 2021 [Member]
Feb. 1, 2013
5.750% Senior Secured Notes Due 2021 [Member]
EUR (€)
Feb. 1, 2013
Senior Notes [Member]
USD ($)
Mar. 31, 2016
Senior Notes [Member]
USD ($)
Mar. 31, 2015
Senior Notes [Member]
USD ($)
Dec. 31, 2015
Senior Notes [Member]
USD ($)
Feb. 1, 2013
Euro Senior Notes [Member]
USD ($)
Mar. 31, 2016
Euro Senior Notes [Member]
USD ($)
Dec. 31, 2015
Euro Senior Notes [Member]
USD ($)
Feb. 1, 2013
Euro Senior Notes [Member]
Feb. 1, 2013
Dollar Senior Notes [Member]
USD ($)
Mar. 31, 2016
Dollar Senior Notes [Member]
USD ($)
Dec. 31, 2015
Dollar Senior Notes [Member]
USD ($)
Feb. 1, 2013
Dollar Senior Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
$ 750,000,000.0 
 
€ 250,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, stated percentage
 
7.375% 
 
5.75% 
 
 
 
 
 
 
 
5.75% 
 
 
 
7.375% 
Debt instrument maturity year
2021 
 
2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance cost
 
 
 
 
33,100,000 
 
 
 
10,200,000 
 
 
 
22,900,000 
 
 
 
Unamortized debt issuance expense
 
 
 
 
 
20,300,000 
 
21,300,000 
 
6,200,000 
6,500,000 
 
 
14,100,000 
14,800,000 
 
Amortization of financing costs
 
 
 
 
 
$ 1,000,000 
$ 1,000,000 
 
 
 
 
 
 
 
 
 
Debt instrument, maturity date
 
 
 
 
 
 
 
 
Feb. 01, 2021 
 
 
 
May 01, 2021 
 
 
 
Debt instrument, redemption price, percentage
 
 
 
 
 
 
 
 
101.00% 
 
 
 
101.00% 
 
 
 
Borrowings - Debt Instrument Redemption (Details)
0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Feb. 1, 2013
Euro Senior Notes [Member]
Mar. 31, 2016
Euro Senior Notes [Member]
2016 [Member]
Mar. 31, 2016
Euro Senior Notes [Member]
2017 [Member]
Mar. 31, 2016
Euro Senior Notes [Member]
2018 [Member]
Mar. 31, 2016
Euro Senior Notes [Member]
2019 and thereafter [Member]
Feb. 1, 2013
Dollar Senior Notes [Member]
Mar. 31, 2016
Dollar Senior Notes [Member]
2016 [Member]
Mar. 31, 2016
Dollar Senior Notes [Member]
2017 [Member]
Mar. 31, 2016
Dollar Senior Notes [Member]
2018 [Member]
Mar. 31, 2016
Dollar Senior Notes [Member]
2019 and thereafter [Member]
Debt Instrument, Redemption [Line Items]
 
 
 
 
 
 
 
 
 
 
Debt instrument, redemption price, percentage
101.00% 
104.313% 
102.875% 
101.438% 
100.00% 
101.00% 
105.531% 
103.688% 
101.844% 
100.00% 
Borrowings - Schedule of Maturities of Long-term Debt (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Debt Disclosure [Abstract]
 
Remainder of 2016
$ 32.4 
2017
29.6 
2018
28.2 
2019
27.7 
2020
2,368.9 
Thereafter
1,029.9 
Long-term debt
$ 3,516.7 
Fair Value Accounting (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities
$ 3.9 
$ 4.2 
Dollar Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
795.0 
787.5 
Euro Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
290.1 
285.4 
Dollar Term Loan Due 2020 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
2,021.5 
2,024.6 
Euro Term Loan Due 2020 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
$ 437.7 
$ 427.5 
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) (Fair Value, Inputs, Level 2 [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
$ 0 
$ 0.4 
Derivative liability
6.0 
1.8 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0.4 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
6.0 
1.8 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0.3 
Derivative liability
$ 2.0 
$ 0 
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (Interest Rate Contract [Member], Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion)
$ 2.2 
$ 4.8 
Interest Expense [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion)
1.6 
1.6 
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)
$ 2.4 
$ 1.2 
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (Other Nonoperating Income (Expense) [Member], Foreign Exchange Contract [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Other Nonoperating Income (Expense) [Member] |
Foreign Exchange Contract [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
(Gain) loss on non-derivative instruments, net
$ 2.4 
$ (1.8)
Derivative Financial Instruments - Additional Information (Details)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Interest_Rate_Swaps
Dec. 31, 2013
Euro Term Loan Due 2020 [Member]
EUR (€)
Mar. 31, 2016
Interest Rate Swap [Member]
Dec. 31, 2013
Interest Rate Swap [Member]
USD ($)
Dec. 31, 2013
Interest Rate Cap [Member]
Euro Term Loan Due 2020 [Member]
USD ($)
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Number Of interest rate swaps
 
 
 
 
Derivative, notional amount
 
 
 
$ 1,173.0 
 
Derivative, maturity date
 
 
Sep. 29, 2017 
 
 
Long-term debt, gross
 
300.0 
 
 
 
Derivative, cap interest rate
 
1.50% 
 
 
 
Derivative instrument, premium
 
 
 
 
$ 3.1 
Segments - Reconciliation of Revenue from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Segment
Mar. 31, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Number of operating segments
 
Net sales
$ 955.6 
$ 989.2 
Performance Coatings [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
543.0 
557.2 
Performance Coatings [Member] |
Refinish [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
378.7 
393.2 
Performance Coatings [Member] |
Industrial [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
164.3 
164.0 
Transportation Coatings [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
412.6 
432.0 
Transportation Coatings [Member] |
Light Vehicle [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
329.4 
333.2 
Transportation Coatings [Member] |
Commercial Vehicle [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
$ 83.2 
$ 98.8 
Segments - Schedule of Segment Reporting Information, by Segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Segment Reporting Information [Line Items]
 
 
Net sales
$ 955.6 
$ 989.2 
Equity in earnings in unconsolidated affiliates
0.2 
0.4 
Adjusted EBITDA
194.8 
182.0 
Investment in unconsolidated affiliates
15.6 
10.5 
Performance Coatings [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
543.0 
557.2 
Equity in earnings in unconsolidated affiliates
0.1 
0.1 
Adjusted EBITDA
110.1 
107.1 
Investment in unconsolidated affiliates
4.1 
4.0 
Transportation Coatings [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
412.6 
432.0 
Equity in earnings in unconsolidated affiliates
0.1 
0.3 
Adjusted EBITDA
84.7 
74.9 
Investment in unconsolidated affiliates
$ 11.5 
$ 6.5 
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
Income before income taxes
$ 45.2 
$ 47.9 
Interest expense, net
50.1 
50.0 
Depreciation and amortization
76.0 
72.6 
EBITDA
171.3 
170.5 
Exchange losses, net
7.5 
8.7 
Long-term employee benefit plan adjustments
0.6 
0.2 
Termination benefits and other employee related costs
1.9 
3.7 
Consulting and advisory fees
3.0 
3.1 
Offering costs
1.4 
Stock-based compensation
10.2 
1.8 
Other adjustments
1.8 
(3.9)
Dividends paid to noncontrolling interests
(1.5)
(3.5)
Adjusted EBITDA
194.8 
182.0 
Equity Method Investee [Member]
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
Equity method investments, remeasurement gain
 
$ 5.4 
Shareholders' Equity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
Total stockholders’ equity, beginning balance
$ 1,141.2 
$ 1,112.0 
Net income
30.6 
46.7 
Other comprehensive income, net of tax
13.8 
(112.5)
Exercise of stock options
6.7 
(0.6)
Recognition of stock-based compensation
10.2 
1.8 
Noncontrolling Interest, Increase from Business Combination
 
4.3 
Dividends paid to noncontrolling interests
(1.5)
(3.5)
Total stockholders’ equity, ending balance
1,201.0 
1,048.2 
Parent [Member]
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
Total stockholders’ equity, beginning balance
1,073.7 
1,044.7 
Net income
29.7 
45.1 
Other comprehensive income, net of tax
13.8 
(112.1)
Exercise of stock options
6.7 
(0.6)
Recognition of stock-based compensation
10.2 
1.8 
Noncontrolling Interest, Increase from Business Combination
 
Dividends paid to noncontrolling interests
Total stockholders’ equity, ending balance
1,134.1 
978.9 
Noncontrolling Interest [Member]
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
Total stockholders’ equity, beginning balance
67.5 
67.3 
Net income
0.9 
1.6 
Other comprehensive income, net of tax
(0.4)
Exercise of stock options
Recognition of stock-based compensation
Noncontrolling Interest, Increase from Business Combination
 
4.3 
Dividends paid to noncontrolling interests
(1.5)
(3.5)
Total stockholders’ equity, ending balance
$ 66.9 
$ 69.3 
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
$ (269.3)
 
Other comprehensive income (loss), net of tax
13.8 
(112.5)
Accumulated other comprehensive income (loss), ending balance
(255.5)
 
Unrealized Currency Translation Adjustments
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
(232.8)
(72.1)
Current year deferrals to AOCI
15.7 
(109.2)
Reclassifications from AOCI to Net income
Other comprehensive income (loss), net of tax
15.7 
(109.2)
Accumulated other comprehensive income (loss), ending balance
(217.1)
(181.3)
Long-term Employee Benefit Adjustments
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
(33.4)
(31.2)
Current year deferrals to AOCI
Reclassifications from AOCI to Net income
(0.1)
(0.4)
Other comprehensive income (loss), net of tax
(0.1)
(0.4)
Accumulated other comprehensive income (loss), ending balance
(33.5)
(31.6)
Unrealized Gain (Loss) on Securities
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
0.1 
(0.2)
Current year deferrals to AOCI
(0.4)
0.5 
Reclassifications from AOCI to Net income
Other comprehensive income (loss), net of tax
(0.4)
0.5 
Accumulated other comprehensive income (loss), ending balance
(0.3)
0.3 
Unrealized Gain (Losses) on Derivatives
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
(3.2)
0.2 
Current year deferrals to AOCI
(2.4)
(1.4)
Reclassifications from AOCI to Net income
1.0 
(1.6)
Other comprehensive income (loss), net of tax
(1.4)
(3.0)
Accumulated other comprehensive income (loss), ending balance
(4.6)
(2.8)
Accumulated Other Comprehensive Income (loss)
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
(269.3)
(103.3)
Current year deferrals to AOCI
12.9 
(110.1)
Reclassifications from AOCI to Net income
0.9 
(2.0)
Other comprehensive income (loss), net of tax
13.8 
(112.1)
Accumulated other comprehensive income (loss), ending balance
$ (255.5)
$ (215.4)
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Equity [Abstract]
 
 
Pension and other postretirement benefit plans, tax benefit
$ 0 
$ 0.8 
Cumulative pension and other postretirement benefit plans, tax benefit
13.4 
14.1 
Unrealized gain (loss) on derivatives, tax benefit
0.8 
1.8 
Cumulative unrealized gain (loss) on derivatives, tax benefit
$ 2.7 
$ 1.6 
Venezuela (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Intercompany Foreign Currency Balance [Line Items]
 
 
 
Assets
$ 5,833.1 
 
$ 5,854.2 
Liabilities
4,632.1 
 
4,713.0 
Net sales
955.6 
989.2 
 
Venezuelan Subsidiary [Member]
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
Exchange loss
7.1 
 
 
Percent of assets represented by a subsidiary (less than)
3.00% 
 
3.00% 
Percent of liabilities represented by subsidiary (less than)
3.00% 
 
3.00% 
Subsidiaries [Member]
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
Assets
141.0 
 
152.9 
Liabilities
35.1 
 
42.2 
Non-monetary assets, net
113.3 
 
112.4 
Net sales
9.9 
30.0 
 
Subsidiaries [Member] |
Subsidiary of Common Parent [Member]
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
Liabilities
$ 10.8 
 
$ 9.2 
Subsequent Events (Details) (Subsequent Event [Member], New Dollar Term Loan [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended
Apr. 30, 2016
Subsequent Event [Member] |
New Dollar Term Loan [Member]
 
Subsequent Event [Line Items]
 
Repayments of debt
$ 100.0 
Gains (losses) on extinguishment of debt
$ (2.3)