AXALTA COATING SYSTEMS LTD., S-1 filed on 7/14/2015
Securities Registration Statement
Document and Entity Information
3 Months Ended
Mar. 31, 2015
Document And Entity Information [Abstract]
 
Document Type
S-1 
Amendment Flag
false 
Document Period End Date
Mar. 31, 2015 
Trading Symbol
AXTA 
Entity Registrant Name
AXALTA COATING SYSTEMS LTD. 
Entity Central Index Key
0001616862 
Entity Filer Category
Non-accelerated Filer 
Consolidated (Successor) and DuPont Performance Coatings Combined (Predecessor) Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Net sales
$ 989.2 
$ 1,047.4 
$ 0 
$ 4,361.7 
$ 3,951.1 
$ 326.2 
$ 4,219.4 
Other revenue
8.3 
7.0 
29.8 
35.7 
1.1 
37.4 
Total revenue
997.5 
1,054.4 
4,391.5 
3,986.8 
327.3 
4,256.8 
Cost of goods sold
649.8 
703.5 
2,897.2 
2,772.8 
232.2 
2,932.6 
Selling, general and administrative expenses
213.0 
246.7 
991.5 
1,040.6 
70.8 
873.4 
Research and development expenses
12.9 
11.3 
49.5 
40.5 
3.7 
41.5 
Amortization of acquired intangibles
20.0 
21.1 
83.8 
79.9 
Merger and acquisition related expenses
 
 
29.0 
28.1 
Income (loss) from operations
101.8 
71.8 
(29.0)
369.5 
24.9 
20.6 
409.3 
Interest expense, net
50.0 
59.0 
217.7 
215.1 
Bridge financing commitment fees
 
 
25.0 
Other expense, net
3.9 
4.5 
115.0 
48.5 
5.0 
16.3 
Income (loss) before income taxes
47.9 
8.3 
(29.0)
36.8 
(263.7)
15.6 
393.0 
Provision (benefit) for income taxes
1.2 
12.0 
2.1 
(44.8)
7.1 
145.2 
Net income (loss)
46.7 
(3.7)
(29.0)
34.7 
(218.9)
8.5 
247.8 
Less: Net income attributable to noncontrolling interests
1.6 
0.6 
7.3 
6.0 
0.6 
4.5 
Net income (loss) attributable to controlling interests
$ 45.1 
$ (4.3)
$ (29.0)
$ 27.4 
$ (224.9)
$ 7.9 
$ 243.3 
Basic net income (loss) per share (dollars per share)
$ 0.20 
$ (0.02)
$ 0.00 
$ 0.12 
$ (0.97)
 
 
Diluted net income (loss) per share (dollars per share)
$ 0.19 
$ (0.02)
$ 0.00 
$ 0.12 
$ (0.97)
 
 
Basic weighted average shares outstanding
229.8 
229.1 
229.3 
228.3 
 
 
Diluted weighted average shares outstanding
237.0 
229.1 
230.3 
228.3 
 
 
Consolidated (Successor) and DuPont Performance Coatings Combined (Predecessor) Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Net income (loss)
$ 46.7 
$ (3.7)
$ (29.0)
$ 34.7 
$ (218.9)
$ 8.5 
$ 247.8 
Other comprehensive income (loss), before tax:
 
 
 
 
 
 
 
Foreign currency translation adjustments
(109.6)
(7.5)
(101.1)
24.3 
Unrealized gain (loss) on securities
0.5 
(0.2)
0.7 
(0.9)
0.2 
0.3 
Unrealized gain (loss) on derivatives
(4.8)
0.5 
(4.6)
5.0 
Unrealized gain (loss) on pension and other benefit plan obligations
(1.2)
5.5 
(55.6)
11.0 
1.1 
(99.6)
Other comprehensive income (loss), before tax
(115.1)
(1.7)
(160.6)
39.4 
1.3 
(99.3)
Income tax benefit (provision) related to items of other comprehensive income
2.6 
(1.3)
18.6 
(5.4)
(0.4)
34.7 
Other comprehensive income (loss), net of tax
(112.5)
(3.0)
(142.0)
34.0 
0.9 
(64.6)
Comprehensive income (loss)
(65.8)
(6.7)
(29.0)
(107.3)
(184.9)
9.4 
183.2 
Less: Comprehensive income attributable to noncontrolling interests
1.2 
0.6 
2.6 
6.0 
0.6 
4.5 
Comprehensive income (loss) attributable to controlling interests
$ (67.0)
$ (7.3)
$ (29.0)
$ (109.9)
$ (190.9)
$ 8.8 
$ 178.7 
Consolidated Balance Sheets (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$ 222.9 
$ 382.1 
$ 459.3 
Restricted cash
2.8 
4.7 
Accounts and notes receivable, net
833.0 
820.4 
865.9 
Inventories
541.3 
538.3 
550.2 
Prepaid expenses and other
82.6 
62.9 
50.2 
Deferred income taxes
68.2 
64.5 
30.0 
Total current assets
1,750.8 
1,872.9 
1,955.6 
Property, plant and equipment, net
1,411.7 
1,514.1 
1,622.6 
Goodwill
916.8 
1,001.1 
1,113.6 
Identifiable intangibles, net
1,246.8 
1,300.0 
1,439.6 
Deferred financing costs, net
86.8 
91.0 
110.6 
Other assets
485.5 
473.7 
495.1 
Total assets
5,898.4 
6,252.8 
6,737.1 
Current liabilities:
 
 
 
Accounts payable
458.3 
494.5 
478.5 
Current portion of borrowings
41.6 
40.1 
46.7 
Deferred income taxes
6.4 
7.3 
5.5 
Other accrued liabilities
291.7 
404.8 
472.7 
Total current liabilities
798.0 
946.7 
1,003.4 
Long-term borrowings
3,566.7 
3,656.3 
3,874.2 
Accrued pensions and other long-term employee benefits
272.6 
306.4 
313.2 
Deferred income taxes
190.6 
208.2 
280.4 
Other liabilities
22.3 
23.2 
54.1 
Total liabilities
4,850.2 
5,140.8 
5,525.3 
Commitments and contingencies
   
   
   
Shareholders' equity
 
 
 
Common shares, value
229.8 
229.8 
229.1 
Capital in excess of par
1,145.9 
1,144.7 
1,133.7 
Accumulated deficit
(181.4)
(226.5)
(253.9)
Accumulated other comprehensive income (loss)
(215.4)
(103.3)
34.0 
Total Axalta shareholders' equity
978.9 
1,044.7 
1,142.9 
Noncontrolling interests
69.3 
67.3 
68.9 
Total shareholders' equity
1,048.2 
1,112.0 
1,211.8 
Total liabilities and shareholders' equity
$ 5,898.4 
$ 6,252.8 
$ 6,737.1 
Consolidated Balance Sheets (Parenthetical) (Successor [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
Common stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
$ 1.00 
Common shares, shares authorized
1,000.0 
1,000.0 
1,000.0 
Common shares, shares issued
229.8 
229.8 
229.1 
Common shares, shares outstanding
229.8 
229.8 
229.1 
Consolidated (Successor) and DuPont Performance Coatings Combined (Predecessor) Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Operating activities:
 
 
 
 
 
 
 
Net income (loss)
$ 46.7 
$ (3.7)
$ (29.0)
$ 34.7 
$ (218.9)
$ 8.5 
$ 247.8 
Adjustment to reconcile net income (loss) to cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
72.6 
81.1 
308.7 
300.7 
9.9 
110.7 
Amortization of financing costs and original issue discount
5.0 
5.2 
21.0 
18.4 
Loss on extinguishment and modification of debt
3.1 
6.1 
Fair value step up of acquired inventory sold
 
 
103.7 
Bridge financing commitment fees
 
 
25.0 
Deferred income taxes
(17.2)
(15.1)
(38.2)
(120.8)
9.1 
9.1 
Unrealized loss on derivatives
1.2 
3.1 
 
 
 
 
 
Realized and unrealized foreign exchange losses, net
4.8 
3.4 
75.1 
48.9 
4.5 
Stock-based compensation
1.8 
1.8 
8.0 
7.4 
Other non-cash, net
(1.1)
(4.9)
(25.3)
13.2 
(3.9)
7.6 
Decrease (increase) in operating assets and liabilities:
 
 
 
 
 
 
 
Trade accounts and notes receivable
(53.5)
(65.3)
(40.2)
(6.4)
25.8 
(58.9)
Inventories
(25.9)
(28.3)
(24.7)
33.9 
(19.3)
5.7 
Prepaid expenses and other assets
(36.3)
1.9 
(54.1)
(90.9)
3.1 
1.4 
Accounts payable
(1.0)
29.3 
53.6 
67.1 
(29.9)
54.9 
Other accrued liabilities
(91.1)
(76.9)
29.0 
(54.8)
193.1 
(43.8)
36.4 
Other liabilities
(4.7)
(1.9)
(18.5)
2.4 
(1.7)
(25.9)
Cash provided by (used for) operating activities
(98.7)
(67.2)
251.4 
376.8 
(37.7)
388.8 
Investing activities:
 
 
 
 
 
 
 
Acquisition of controlling interest in investment affiliate (net of cash acquired)
(3.2)
(4,827.6)
Purchase of property, plant and equipment
(31.5)
(50.2)
(188.4)
(107.3)
(2.4)
(73.2)
Investment in real estate property
 
 
(54.5)
Purchase of interest rate cap
 
 
(3.1)
Settlement of foreign currency contract
 
 
(19.4)
Restricted cash
1.8 
(2.0)
(4.7)
Purchase of intangibles
(0.2)
(0.2)
(6.3)
(21.6)
Purchase of investment in affiliate
 
 
(6.5)
(1.2)
0.1 
Proceeds from sale of intangible assets
0.4 
 
 
 
 
 
Proceeds from sale of assets
 
 
21.3 
0.7 
1.6 
6.5 
Proceeds from sale of affiliate
2.3 
 
 
 
 
 
Cash used for investing activities
(30.2)
(52.4)
(178.5)
(5,011.2)
(8.3)
(88.2)
Financing activities:
 
 
 
 
 
 
 
Proceeds from long-term borrowings
 
 
0.7 
3,906.7 
Proceeds from short-term borrowings
1.5 
16.7 
30.7 
38.8 
Payments on short-term borrowings
(10.7)
(9.6)
(33.8)
(25.3)
(0.7)
Payments on long-term debt
(6.8)
(121.1)
(21.3)
Payments of deferred financing costs
 
 
(126.0)
Bridge financing commitment fees
 
 
(25.0)
Dividends paid to noncontrolling interests
(3.5)
(0.9)
(2.2)
(5.2)
Debt modification fees
(3.0)
(3.0)
Equity contribution
 
 
2.5 
1,355.4 
Other financing activities
(0.2)
 
 
 
 
 
Cash received from exercises of stock options
 
 
3.0 
Net transfer (to) from DuPont
 
 
43.0 
(289.9)
Cash provided by (used for) financing activities
(19.7)
3.2 
(123.2)
5,098.1 
43.0 
(290.6)
Increase (decrease) in cash and cash equivalents
(148.6)
(116.4)
(50.3)
463.7 
(3.0)
10.0 
Effect of exchange rate changes on cash
(10.6)
(3.3)
(26.9)
(4.4)
(0.1)
Cash and cash equivalents at beginning of period
382.1 
459.3 
459.3 
28.7 
18.8 
Cash and cash equivalents at end of period
222.9 
339.6 
382.1 
459.3 
25.7 
28.7 
Cash paid during the year for:
 
 
 
 
 
 
 
Interest, net of amounts capitalized
 
 
192.0 
171.9 
Income taxes, net of refunds
 
 
$ 0 
$ 57.0 
$ 83.1 
$ 13.3 
$ 15.9 
Consolidated Statement of Changes in Stockholders' Equity (Successor) and Combined Statement of Changes in DuPonts Net Investment in DuPont Performance Coatings (Predecessor) (USD $)
In Millions, unless otherwise specified
Predecessor [Member]
Predecessor [Member]
Parent [Member]
Predecessor [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Predecessor [Member]
Noncontrolling Interest [Member]
Successor [Member]
Successor [Member]
Parent [Member]
Successor [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Successor [Member]
Noncontrolling Interest [Member]
Successor [Member]
Common Stock [Member]
Successor [Member]
Additional Paid-in Capital [Member]
Successor [Member]
Retained Earnings [Member]
Total stockholders' equity, beginning balance at Dec. 31, 2011
$ 1,805.2 
$ 1,846.7 
$ (76.3)
$ 34.8 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
247.8 
243.3 
 
4.5 
 
 
 
 
 
 
 
Net unrealized gain (loss) on securities, net of tax
0.2 
 
0.2 
 
 
 
 
 
 
 
 
Long-term employee benefit plans, net of tax
(64.8)
 
(64.8)
 
 
 
 
 
 
 
 
Comprehensive income (loss)
183.2 
243.3 
(64.6)
4.5 
 
 
 
 
 
 
 
Net transfers from (to) DuPont
(287.7)
(283.8)
 
(3.9)
 
 
 
 
 
 
 
Deconsolidation of joint venture
(3.7)
(1.9)
 
(1.8)
 
 
 
 
 
 
 
Total stockholders' equity, ending balance at Dec. 31, 2012
1,697.0 
1,804.3 
(140.9)
33.6 
 
 
 
 
 
 
 
Total stockholders' equity, beginning balance at Aug. 23, 2012
 
 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
(29.0)
 
 
 
 
 
(29.0)
Comprehensive income (loss)
 
 
 
 
(29.0)
 
 
 
 
 
(29.0)
Total stockholders' equity, ending balance at Dec. 31, 2012
1,697.0 
1,804.3 
(140.9)
33.6 
(29.0)
 
 
 
 
 
(29.0)
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
8.5 
7.9 
 
0.6 
 
 
 
 
 
 
 
Net unrealized gain (loss) on securities, net of tax
0.2 
 
0.2 
 
 
 
 
 
 
 
 
Long-term employee benefit plans, net of tax
0.7 
 
0.7 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
9.4 
7.9 
0.9 
0.6 
 
 
 
 
 
 
 
Net transfers from (to) DuPont
43.0 
43.0 
 
 
 
 
 
 
 
 
 
Dividends declared to noncontrolling interests
(1.5)
 
 
(1.5)
 
 
 
 
 
 
 
Total stockholders' equity, ending balance at Jan. 31, 2013
1,747.9 
1,855.2 
(140.0)
32.7 
 
 
 
 
 
 
 
Total stockholders' equity, beginning balance at Dec. 31, 2012
 
 
 
 
(29.0)
 
 
 
 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
(156.5)
 
 
 
 
 
 
Total stockholders' equity, ending balance at Mar. 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Total stockholders' equity, beginning balance at Dec. 31, 2012
 
 
 
 
(29.0)
 
 
 
 
 
(29.0)
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
(218.9)
 
 
6.0 
 
 
(224.9)
Net unrealized gain (loss) on securities, net of tax
 
 
 
 
(0.9)
 
(0.9)
 
 
 
 
Net realized and unrealized gain (loss) on derivatives, net of tax
 
 
 
 
3.1 
 
3.1 
 
 
 
 
Long-term employee benefit plans, net of tax
 
 
 
 
7.5 
 
7.5 
 
 
 
 
Foreign currency translation
 
 
 
 
24.3 
 
24.3 
 
 
 
 
Comprehensive income (loss)
 
 
 
 
(184.9)
 
34.0 
6.0 
 
 
(224.9)
Equity contributions
 
 
 
 
1,355.4 
 
 
 
0.1 
1,355.3 
 
Recognition of stock-based compensation
 
 
 
 
7.4 
 
 
 
 
7.4 
 
Capitalization of capital in excess of par
 
 
 
 
 
 
 
 
229.0 
(229.0)
 
Noncontrolling interests of acquired subsidiaries
 
 
 
 
66.7 
 
 
66.7 
 
 
 
Dividends declared to noncontrolling interests
 
 
 
 
(3.8)
 
 
(3.8)
 
 
 
Total stockholders' equity, ending balance at Dec. 31, 2013
 
 
 
 
1,211.8 
 
34.0 
68.9 
229.1 
1,133.7 
(253.9)
Total stockholders' equity, beginning balance at Sep. 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
(47.0)
 
 
 
 
 
 
Total stockholders' equity, ending balance at Dec. 31, 2013
 
 
 
 
1,211.8 
1,142.9 
 
68.9 
 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
(3.7)
(4.3)
 
0.6 
 
 
 
Comprehensive income (loss)
 
 
 
 
(6.7)
 
 
 
 
 
 
Recognition of stock-based compensation
 
 
 
 
1.8 
1.8 
 
 
 
 
Dividends declared to noncontrolling interests
 
 
 
 
(0.9)
 
(0.9)
 
 
 
Total stockholders' equity, ending balance at Mar. 31, 2014
 
 
 
 
1,206.0 
1,137.4 
 
68.6 
 
 
 
Total stockholders' equity, beginning balance at Dec. 31, 2013
 
 
 
 
1,211.8 
 
34.0 
68.9 
229.1 
1,133.7 
(253.9)
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
34.7 
 
 
7.3 
 
 
27.4 
Net unrealized gain (loss) on securities, net of tax
 
 
 
 
0.7 
 
0.7 
 
 
 
 
Net realized and unrealized gain (loss) on derivatives, net of tax
 
 
 
 
(2.9)
 
(2.9)
 
 
 
 
Long-term employee benefit plans, net of tax
 
 
 
 
(38.7)
 
(38.7)
 
 
 
 
Foreign currency translation
 
 
 
 
(101.1)
 
(96.4)
(4.7)
 
 
 
Comprehensive income (loss)
 
 
 
 
(107.3)
 
(137.3)
2.6 
 
 
27.4 
Equity contributions
 
 
 
 
2.5 
 
 
 
0.3 
2.2 
 
Recognition of stock-based compensation
 
 
 
 
8.0 
 
 
 
 
8.0 
 
Exercises of stock options
 
 
 
 
3.0 
 
 
 
0.4 
2.6 
 
Noncontrolling interests of acquired subsidiaries
 
 
 
 
(3.8)
 
 
(2.0)
 
(1.8)
 
Dividends declared to noncontrolling interests
 
 
 
 
(2.2)
 
 
(2.2)
 
 
 
Total stockholders' equity, ending balance at Dec. 31, 2014
 
 
 
 
1,112.0 
 
(103.3)
67.3 
229.8 
1,144.7 
(226.5)
Total stockholders' equity, beginning balance at Mar. 31, 2014
 
 
 
 
1,206.0 
 
 
 
 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
55.8 
 
 
 
 
 
 
Total stockholders' equity, ending balance at Jun. 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Total stockholders' equity, beginning balance at Sep. 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
0.9 
 
 
 
 
 
 
Total stockholders' equity, ending balance at Dec. 31, 2014
 
 
 
 
1,112.0 
1,044.7 
 
67.3 
 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
46.7 
45.1 
 
1.6 
 
 
 
Comprehensive income (loss)
 
 
 
 
(65.8)
 
 
 
 
 
 
Recognition of stock-based compensation
 
 
 
 
1.8 
1.8 
 
 
 
 
Exercises of stock options
 
 
 
 
(0.6)
(0.6)
 
 
 
 
Noncontrolling interests of acquired subsidiaries
 
 
 
 
4.3 
 
4.3 
 
 
 
Dividends declared to noncontrolling interests
 
 
 
 
(3.5)
 
(3.5)
 
 
 
Total stockholders' equity, ending balance at Mar. 31, 2015
 
 
 
 
$ 1,048.2 
$ 978.9 
 
$ 69.3 
 
 
 
Consolidated Statement of Changes in Stockholders' Equity (Successor) and Combined Statement of Changes in DuPonts Net Investment in DuPont Performance Coatings (Predecessor) (Parenthetical) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Net unrealized gain (loss) on securities, tax
$ 0 
$ 0.1 
$ 0 
$ 0 
Net realized and unrealized gain (loss) on derivatives, tax
 
 
1.7 
1.9 
Long-term employee benefit plans, tax
$ 0.4 
$ 34.8 
$ 16.9 
$ 3.5 
Basis of Presentation of the Condensed Consolidated Financial Statements
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Basis of Presentation of the Condensed Consolidated Financial Statements
(1) 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, 2015 and December 31, 2014, the results of operations and comprehensive income (loss) for the three months ended March 31, 2015 and 2014, 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, 2014. 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, 2015 and December 31, 2014, the related interim unaudited condensed consolidated statements of operations and statements of comprehensive income (loss) for the three months ended March 31, 2015 and 2014 and of cash flows for the three months ended March 31, 2015 and 2014. The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained.

The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for a full year.

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.

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. We received no proceeds from the Offering.

Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material.

Reclassification and revisions

During 2014, the Company identified errors in the determination of the effective interest rate amortization for the Deferred Financing Costs and Original Issue Discounts that were incurred in 2013. The correction of these items impacted the interim unaudited condensed consolidated statements of operations and statements of comprehensive income (loss) for the three months ended March 31, 2014. Refer to Note 15 for further details.

Basis of Presentation of the Condensed Consolidated Financial Statements
(2) BASIS OF PRESENTATION OF THE CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

The accompanying consolidated balance sheets of Axalta at December 31, 2014 and 2013 and the related consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of cash flows and of changes in shareholders’ equity for the years ended December 31, 2014 and 2013 and for the period from August 24, 2012 through December 31, 2012 are labeled as “Successor”. The Successor financial statements as of and for the years ended December 31, 2014 and 2013 were prepared reflecting acquisition accounting resulting from the Acquisition. The consolidated financial statements for the Successor include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained.

The accompanying combined balance sheet of DPC as of December 31, 2012 and the related combined statements of operations and statements of comprehensive income for the period from January 1, 2013 through January 31, 2013 and for the year ended December 31, 2012 and consolidated statements of cash flows and of changes in parent company net investment for the period from January 1, 2013 through January 31, 2013 and for the year ended December 31, 2012 do not include adjustments or transactions attributable to the Acquisition, and are labeled as “Predecessor”. As a result of the application of acquisition accounting as of the closing date of the Acquisition, the financial statements for the Successor periods and the Predecessor periods are presented on a different basis and are, therefore, not comparable.

During the Predecessor periods, DPC operated either as a reportable segment or part of a reportable segment within DuPont; consequently, standalone financial statements were not historically prepared for DPC. The accompanying combined financial statements of DPC have been prepared from DuPont’s historical accounting records and are presented on a standalone basis as if the operations had been conducted independently from DuPont. In this context, prior to presale structuring activities occurring in the latter part of 2012, no direct ownership relationship existed among all of the various legal entities comprising DPC. Accordingly, DuPont and its subsidiaries’ net investment in these operations is shown in lieu of shareholders’ equity in the Predecessor combined financial statements. The Predecessor combined financial statements include the historical operations, assets and liabilities of the legal entities that are considered to comprise the DPC business.

DPC comprised certain standalone legal entities for which discrete financial information was available, as well as portions of legal entities for which discrete financial information was not available (shared entities). Discrete financial information was not available for DPC within shared entities as DuPont did not record every transaction at the DPC level, but rather at the DuPont corporate level. For shared entities for which discrete financial information was not available, allocation methodologies were applied to certain accounts to allocate amounts to DPC as discussed in Note 8.

The Predecessor combined statements of operations include all revenues and costs directly attributable to DPC, including costs for facilities, functions and services used by DPC. Costs for certain functions and services performed by centralized DuPont organizations were directly charged to DPC based on usage or other allocations methods. The results of operations also include allocations of (i) costs for administrative functions and services performed on behalf of DPC by centralized staff groups within DuPont, (ii) DuPont’s general corporate expenses, and (iii) certain pension and other postretirement benefit costs. As more fully described in Note 14 current and deferred income taxes and related tax expense were determined on the standalone results of the DPC operations in each country as if it were a separate taxpayer (i.e., following the separate return methodology).

 

All charges and allocations of cost for facilities, functions and services performed by DuPont organizations were deemed paid by DPC to DuPont, in cash, in the period in which the costs were recorded in the Predecessor combined statement of operations. Allocations to DPC of current income taxes payable were deemed to have been remitted, in cash, to DuPont in the period the related tax expense was recorded. Allocations of current income taxes receivable were deemed to have been remitted to DPC, in cash, by DuPont in the period in which the receivable applies only to the extent that a refund of such taxes could have been recognized by DPC on a standalone basis under the law of the relevant taxing jurisdiction.

DuPont used a centralized approach to cash management and financing its operations. Accordingly, cash, cash equivalents, debt and interest expense were not allocated to DPC in the Predecessor combined financial statements. Transactions between DPC and DuPont were accounted for through the parent company net investment. DPC purchased materials and services from, and sold materials and services to, DuPont operations not included in the defined scope of DPC. Transactions between DuPont and DPC were deemed to be settled immediately through the parent company net investment. Cash, cash equivalents, debt and interest expense in the Predecessor combined balance sheet and statement of operations represent cash, cash equivalents, debt and interest expense held locally by certain of DPC’s majority owned joint ventures. DuPont’s current and long-term debt was not pushed down to the Predecessor combined financial statements because it was not specifically identifiable to DPC.

All of the allocations and estimates in the Predecessor combined financial statements were based on assumptions that management of DuPont and DPC believed were reasonable. However, the Predecessor combined financial statements included herein may not be indicative of the financial position, results of operations and cash flows of the Company in the future or if DPC had been a separate, standalone entity during the Predecessor periods presented.

Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material.

Recent Accounting Guidance
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Recent Accounting Guidance
(2) RECENT ACCOUNTING GUIDANCE

Accounting Guidance Issued But Not Yet Adopted

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We intend to early adopt this new guidance beginning in the second quarter of 2015. The impacts to the balance sheets at March 31, 2015 and December 31, 2014 would have been corresponding decreases to both total assets and total liabilities of $86.8 million and $91.0 million, respectively.

In February 2015, the FASB issued ASU 2015-02 (Accounting Standard Codification 810), “Consolidation”, which sets forth guidance on accounting for consolidation of certain legal entities. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Although early adoption is permitted, we are still in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows.

In May 2014, the FASB issued ASU 2014-09 (Accounting Standard Codification 606), “Revenue from Contracts with Customers”, 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. Early adoption is not permitted. In April 2015 the FASB proposed a one-year delay in the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and proposed that companies would be allowed to early adopt the guidance as of the original effective date. We are in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows.

Recent Accounting Guidance
(4) RECENT ACCOUNTING GUIDANCE

Recently Adopted Accounting Guidance

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which amended the guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 and early adoption is permitted. We have adopted this guidance as of December 31, 2014.

In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” issuing changes to the reporting of amounts reclassified out of accumulated other comprehensive income. These changes require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. These requirements are to be applied to each component of accumulated other comprehensive income. This guidance is effective prospectively for annual reporting periods beginning on or after January 1, 2014, and the interim periods within those annual periods. We have included the additional disclosures requirements within Note 26.

Accounting Guidance Issued But Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09 (Accounting Standard Codification 606), “Revenue from Contracts with Customers”, 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. Early adoption is not permitted. We are in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows.

Goodwill and Identifiable Intangible Assets
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Goodwill and Identifiable Intangible Assets
(3) GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill

The following table shows changes in the carrying amount of goodwill from December 31, 2014 to March 31, 2015 by reportable segment:

 

     Performance
Coatings
     Transportation
Coatings
     Total  

At December 31, 2014

   $ 933.6       $ 67.5         1,001.1   

Goodwill from acquisition

     12.5         —           12.5   

Foreign currency translation

     (90.3      (6.5      (96.8
  

 

 

    

 

 

    

 

 

 

March 31, 2015

$ 855.8    $ 61.0    $ 916.8   
  

 

 

    

 

 

    

 

 

 

In March 2015, we purchased an additional 25% interest in a previously held equity method investment. See Note 9 for additional information.

Identifiable Intangible Assets

The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:

 

March 31, 2015

   Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Weighted
average

amortization
periods (years)
 

Technology

   $ 411.8       $ (86.5    $ 325.3         10.0   

Trademarks—indefinite-lived

     284.4         —           284.4         Indefinite   

Trademarks—definite-lived

     41.9         (6.2      35.7         14.8   

Customer relationships

     676.9         (76.5      600.4         19.4   

Non-compete agreements

     1.9         (0.9      1.0         4.6   
  

 

 

    

 

 

    

 

 

    

Total

$ 1,416.9    $ (170.1 $ 1,246.8   
  

 

 

    

 

 

    

 

 

    

 

December 31, 2014

   Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Weighted average
amortization
periods (years)
 

Technology

   $ 411.8       $ (76.3    $ 335.5         10.0   

Trademarks—indefinite-lived

     284.4         —           284.4         Indefinite   

Trademarks—definite-lived

     41.8         (5.5      36.3         14.8   

Customer relationships

     713.9         (71.3      642.6         19.4   

Non-compete agreements

     2.0         (0.8      1.2         4.6   
  

 

 

    

 

 

    

 

 

    

Total

$ 1,453.9    $ (153.9 $ 1,300.0   
  

 

 

    

 

 

    

 

 

    

Activity related to in process research and development projects for the three months ended March 31, 2015 was:

 

In Process Research and Development

   Activity  

Balance at December 31, 2014

   $ 5.2   

Completed

     (1.5

Abandoned

     —     
  

 

 

 

Balance at March 31, 2015

$ 3.7   
  

 

 

 

For the three months ended March 31, 2015 and 2014, amortization expense for acquired intangibles was $20.0 million and $21.1 million, respectively.

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2015 and each of the succeeding four years is:

 

Remainder of 2015

$ 59.7   

2016

$ 79.6   

2017

$ 79.2   

2018

$ 79.2   

2019

$ 79.2   
Goodwill and Identifiable Intangible Assets
(6) GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill

The following table shows changes in the carrying amount of goodwill for the Successor years ended December 31, 2014 and 2013 by reportable segment:

 

     Performance
Coatings
     Transportation
Coatings
     Total  

At January 1, 2013

   $ —         $ —         $ —     

Goodwill resulting from Acquisition

     1,012.5         72.9         1,085.4   

Foreign currency translation

     26.3         1.9         28.2   
  

 

 

    

 

 

    

 

 

 

At December 31, 2013

$ 1,038.8    $ 74.8    $ 1,113.6   

Purchase accounting adjustments

  5.7      0.4      6.1   

Divestitures

  (4.7   —        (4.7

Foreign currency translation

  (106.2   (7.7   (113.9
  

 

 

    

 

 

    

 

 

 

December 31, 2014

$ 933.6    $ 67.5    $ 1,001.1   
  

 

 

    

 

 

    

 

 

 

During the Successor year ended December 31, 2014, we identified and recorded purchase accounting adjustments of $6.1 million related to corrections subsequent to the end of the purchase accounting measurement period.

The following table shows changes in the carrying amount of goodwill for the Predecessor year ended December 31, 2012 and the Predecessor period from January 1, 2013 to January 31, 2013 by reportable segment:

 

     Performance
Coatings
     Transportation
Coatings
     Total  

At January 1, 2012

   $ 517.9       $ 70.9       $ 588.8   

Foreign currency translation

     —           —           —     
  

 

 

    

 

 

    

 

 

 

December 31, 2012

$ 517.9    $ 70.9    $ 588.8   

Foreign currency translation

  —        —        —     
  

 

 

    

 

 

    

 

 

 

January 31, 2013

$ 517.9    $ 70.9    $ 588.8   
  

 

 

    

 

 

    

 

 

 

Identifiable Intangible Assets

The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:

 

December 31, 2014

   Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Weighted average
amortization
periods (years)
 

Technology

   $ 411.8       $ (76.3    $ 335.5         10.0   

Trademarks—indefinite-lived

     284.4         —           284.4         Indefinite   

Trademarks—definite-lived

     41.8         (5.5      36.3         14.8   

Customer relationships

     713.9         (71.3      642.6         19.4   

Non-compete agreements

     2.0         (0.8      1.2         4.6   
  

 

 

    

 

 

    

 

 

    

Total

$ 1,453.9    $ (153.9 $ 1,300.0   
  

 

 

    

 

 

    

 

 

    

 

December 31, 2013

   Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Weighted average
amortization
periods (years)
 

Technology

   $ 425.2       $ (37.3    $ 387.9         10.0   

Trademarks—indefinite-lived

     284.4         —           284.4         Indefinite   

Trademarks—definite-lived

     41.7         (2.6      39.1         14.8   

Customer relationships

     761.9         (34.9      727.0         19.4   

Non-compete agreements

     1.5         (0.3      1.2         4.0   
  

 

 

    

 

 

    

 

 

    

Total

$ 1,514.7    $ (75.1 $ 1,439.6   
  

 

 

    

 

 

    

 

 

    

Activity related to in process research and development projects for the successor years ended December 31, 2013 and 2014:

 

In Process Research and Development

   Activity  

Balance at February 1, 2013

   $ 25.4   

Completed

     (6.5

Abandoned

     (3.2
  

 

 

 

Balance at December 31, 2013

$ 15.7   

Completed

  (10.4

Abandoned

  (0.1
  

 

 

 

Balance at December 31, 2014

$ 5.2   
  

 

 

 

In the Successor years ended December 31, 2014 and 2013, amortization expense for acquired intangibles was $83.8 million and $79.9 million, respectively. Amortization expense for the years ended December 31, 2014 and 2013 included losses of $0.1 million and $3.2 million, respectively, associated with abandoned acquired in process research and development projects, all of which was related to the Acquisition.

Amortization expense for the Predecessor period from January 1, 2013 through January 31, 2013 and the Predecessor year ended December 31, 2012 was $2.6 million and $25.7 million, respectively, which were primarily reported as a reduction in net sales.

The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is:

 

2015

$ 81.6   

2016

$ 81.6   

2017

$ 81.1   

2018

$ 81.0   

2019

$ 81.0   
Restructuring
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Restructuring
(4) 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 associated with our transition and cost-saving opportunities related to the separation from DuPont and our Axalta Way initiatives. During the three months ended March 31, 2015 and 2014 we incurred restructuring costs of $2.2 million and $0.1 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 by December 2015.

 

The following table summarizes the activities related to the restructuring reserves, recorded within other accrued liabilities, and expenses from December 31, 2014 to March 31, 2015:

 

     2015 Activity  

Balance at December 31, 2014

   $ 48.5   

Expense Recorded

     2.2   

Payments Made

     (14.0

Foreign Currency Changes

     (5.0
  

 

 

 

Balance at March 31, 2015

$ 31.7   
  

 

 

 
Restructuring
(7) RESTRUCTURING

Successor Periods

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.

Since the Acquisition date, we have incurred costs associated with involuntary termination benefits associated with corporate-related initiatives associated with our transition and cost-saving opportunities related to the separation from DuPont. During the Successor years ended December 31, 2014 and 2013 we incurred restructuring costs of $8.5 million and $120.7 million, respectively. These amounts are recorded within selling, general, and administrative expenses in the consolidated statements of operations. The payments associated with these actions are expected to be completed by December 2015.

The following tables summarize the activities related to the restructuring reserves, recorded within other accrued liabilities, and expenses for the Successor years ended December 31, 2013 and 2014:

 

     2013 Activity  

Balance at February 1, 2013 (At acquisition date)

   $ 0.5   

Expense recorded

     120.7   

Payments

     (23.7

Foreign currency translation

     0.9   
  

 

 

 

Balance at December 31, 2013

$ 98.4   
  

 

 

 
     2014 Activity  

Balance at December 31, 2013

   $ 98.4   

Expense Recorded

     8.5   

Payments Made

     (51.6

Foreign Currency Changes

     (6.8
  

 

 

 

Balance at December 31, 2014

$ 48.5   
  

 

 

 

Predecessor Periods

There was no expense recorded during the Predecessor periods January 1, 2013 through January 31, 2013 associated with restructuring. At December 31, 2012 of the Predecessor period, total liabilities relating to restructuring activities were $2.1 million. For the Predecessor year ended December 31, 2012 there were reductions in expense resulting from changes in estimates of $0.3 million.

Commitments and Contingencies
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Commitments and Contingencies
(5) COMMITMENTS AND CONTINGENCIES

Guarantees

We directly guarantee certain obligations under agreements with third parties. At March 31, 2015 and December 31, 2014, we had directly guaranteed $2.1 million and $2.2 million of such obligations, respectively. These guarantees represent the maximum potential amount of future (undiscounted) payments that we could be required to make under the guarantees in the event of default by the guaranteed parties. No amounts were accrued at March 31, 2015 and December 31, 2014.

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.

Commitments and Contingencies
(9) COMMITMENTS AND CONTINGENCIES

Guarantees

In connection with the Acquisition, we assumed certain guarantee obligations which directly guarantee various debt obligations under agreements with third parties related to the following: equity affiliates, customers, suppliers and other affiliated companies.

 

At December 31, 2014 and 2013, we had directly guaranteed $2.2 million and $1.6 million of such obligations, respectively. These guarantees represent the maximum potential amount of future (undiscounted) payments that we could be required to make under the guarantees in the event of default by the guaranteed parties. No amounts were accrued at December 31, 2014 and 2013.

Product Warranty

We warrant that our products meet standard specifications. Our product warranty liability at December 31, 2014 and 2013 was $0.5 million and $0.6 million, respectively. Estimates for warranty costs are based on historical claims experience.

Operating Lease Commitments

We use various leased facilities and equipment in our operations. The terms for these leased assets vary depending on the lease agreement. Net rental expense under operating leases were $61.6 million and $50.0 million for the Successor years ended December 31, 2014 and 2013, respectively. Net rental expense under operating leases was $4.6 million and $43.6 million for the Predecessor period from January 1, 2013 through January 31, 2013 and the Predecessor year ended December 31, 2012, respectively.

At December 31, 2014, future minimum payments under non-cancelable operating leases were as follows over each of the next five years and thereafter:

 

     Operating
Leases
 

2015

   $ 50.6   

2016

     35.5   

2017

     27.6   

2018

     24.5   

2019

     22.7   

Thereafter

     47.7   
  

 

 

 

Total minimum payments

$ 208.6   
  

 

 

 

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 impact 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 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 consolidated financial statements of Axalta.

Long-term Employee Benefits
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Long-term Employee Benefits
(6) LONG-TERM EMPLOYEE BENEFITS

Components of Net Periodic Benefit Cost

The following table sets forth the components of net periodic benefit (gain) cost for the three months ended March 31, 2015 and 2014.

 

     Pension Benefits  
     Three Months Ended March 31,  
              2015                        2014           

Components of net periodic benefit cost:

     

Net periodic benefit cost:

     

Service cost

   $ 3.1       $ 4.6   

Interest cost

     4.6         6.0   

Expected return on plan assets

     (3.7      (3.7

Amortization of actuarial (gain) loss, net

     0.3         (0.1

Amortization of prior service credit, net

     (0.1      —     
  

 

 

    

 

 

 

Net periodic benefit cost

$ 4.2    $ 6.8   
  

 

 

    

 

 

 

 

     Other Long-Term Employee Benefits  
     Three Months Ended March 31,  
                 2015                              2014              

Components of net periodic benefit (gain) cost:

     

Net periodic benefit (gain) cost:

     

Service cost

   $ —         $ —     

Interest cost

     —           0.1   

Amortization of prior service credit

     (0.9      —     
  

 

 

    

 

 

 

Net periodic benefit (gain) cost

$ (0.9 $ 0.1   
  

 

 

    

 

 

 

Significant Events

During the three months ended March 31, 2014, the Company amended one of our Non-U.S. defined benefit pension plans. The amendment effectively eliminated the accrual of future benefits for all participants as of March 31, 2014, resulting in a curtailment gain of $5.6 million. As the plan had unrealized losses in excess of the reduction of the projected benefit obligation at the date of amendment, the gain was recorded as a reduction of the projected benefit obligation and a corresponding reduction of unrealized losses within Accumulated other comprehensive loss.

Long-term Employee Benefits
(10) LONG-TERM EMPLOYEE BENEFITS

Defined Benefit Pension and Other Long-Term Employee Benefits Plans

Successor period

Defined Benefit Pensions

In connection with the Acquisition, we assumed certain defined benefit plan obligations for both current and former employees of our non-U.S. subsidiaries. All defined benefit pension plan obligations for current and former employees in the U.S. were retained by DuPont.

The defined benefit obligations for remaining current employees of non-U.S. subsidiaries assumed by Axalta were carved out of defined benefit pension plans retained by DuPont, where required. We have created new defined benefit pension plans for all effected participants. The Acquisition Agreement required DuPont to transfer assets generally in the form of cash, insurance contracts or marketable securities from DuPont’s funded defined benefit pension plans to our defined benefit pension plans within 180 days of the closing date of the Acquisition. The determination of asset transfers has been completed at December 31, 2014 for all plans except the plan covering our Canadian employees.

During the Predecessor period, DuPont had accounted for the benefit obligations of all the defined benefit plans as though the employees were participants in a multiemployer plan in the Predecessor period. For multiemployer plans, ASC 805, Business Combinations, requires an obligation to the plan for a portion of its unfunded benefit obligations to be established at the acquisition date when withdrawal from the multiemployer plan is probable. As withdrawal from the DuPont defined benefit pension plan and related transfer of plan assets was required pursuant to the Acquisition Agreement, an estimate of the unfunded benefit obligations was recorded as of the Acquisition date. The plan assets have been or will be directly transferred to the pension trust. Accordingly, assumed defined benefit obligations are presented net of the plan assets transferred, or to be transferred in the case of Canada, by DuPont.

Other Long-Term Employee Benefits

We also assumed in connection with the Acquisition certain long-term employee health care and life insurance benefits for certain eligible employees in Canada and Brazil. These programs require retiree contributions based on retiree-selected coverage levels for certain retirees.

Predecessor period

DuPont offered various long-term benefits to its employees. DuPont offered U.S. plans that were shared amongst its businesses. In these cases, the costs, assets, and liabilities of participating employees in these plans are reflected in the Predecessor combined financial statements as though DPC participated in a multiemployer plan. The total cost of the plan was determined by actuarial valuation and the business received an allocation of the cost of the plan based upon several factors, including a percentage of salaries, headcount and fixed costs.

For the non-U.S. plans, the Predecessor combined financial statements have been prepared as though the DPC employees who participated in the non-U.S. plans were considered separate plans. As such a portion of DuPont’s liabilities, assets and expenses are included in the Predecessor combined financial statements. Pension asset allocation for funded plans outside of the U.S. was based on either predominant local country calculation, or in other cases, by relative benefit obligation of the standalone DPC plan.

 

Defined Benefit Pensions

DuPont had both funded and unfunded noncontributory defined benefit pension plans covering a majority of the U.S. employees hired before January 1, 2007, including U.S. employees of DPC. The benefits under these plans were based primarily on years of service and employees’ pay near retirement. DuPont’s funding policy was consistent with the funding requirements of federal laws and regulations.

Pension coverage for employees of DuPont’s non-U.S. subsidiaries was provided, to the extent deemed appropriate, through separate plans. Obligations under such plans were funded by depositing funds with trustees, covered by insurance contracts, or were unfunded.

Other Long-Term Employee Benefits

DuPont and its Canadian and Brazilian subsidiaries provided medical, dental and life insurance benefits to pensioners and survivors, and disability and life insurance protection to employees. The associated plans for retiree benefits were unfunded and the cost of the approved claims was paid from DuPont funds. Essentially all of the cost and liabilities for these retiree benefit plans were attributable to DuPont’s U.S. plans. The retiree medical plan was contributory with pensioners and survivors’ contributions adjusted annually to achieve a 50/50 target sharing of cost increases between DuPont and pensioners and survivors. In addition, limits were applied to DuPont’s portion of the retiree medical cost coverage. U.S. employees hired after December 31, 2006 were not eligible to participate in the postretirement medical, dental and life insurance plans.

Employee life insurance and disability benefit plans were insured in many countries. However, primarily in the U.S., such plans were generally self-insured or were fully experience rated. Expenses for self-insured and fully experience rated plans are reflected in the Predecessor combined financial statements.

Participation in the U.S. Plans

DPC participated in DuPont’s U.S. plans as though they were participants in a multiemployer plan with the other businesses of DuPont. The following table presents pension expense allocated by DuPont to DPC for DuPont’s significant plans in which DPC participated.

 

            Predecessor         

Plan Name

   EIN/
Pension Number
     January 1,
2013 through
January 31,
2013
     Year Ended
December 31,
2012
 

DuPont Pension and Retirement Plan

     51-0014090/001       $ 4.2       $ 40.6   

All Other Plans

      $ 0.7       $ 16.7   

 

Obligations and Funded Status

The measurement date used to determine defined benefit and other long-term employee benefit obligations was December 31. The following table sets forth the changes to the projected benefit obligations (“PBO”) and plan assets for the Successor year ended December 31, 2014 and 2013 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2014 and 2013 for the Company’s defined benefit pension and other long-term benefit plans:

 

    Defined Benefits     Other Long-Term Employee
Benefits
 
    Successor     Successor  
    Year Ended December 31,     Year Ended December 31,  

Obligations and Funded Status

      2014             2013         2014     2013  

Change in benefit obligation:

       

Projected benefit obligation at beginning of year

  $ 603.0      $ —        $ 4.6      $ —     

Fair value of assumed obligation at Acquisition date

    —          579.5        —          5.2   

Service cost

    15.4        17.0        0.1        0.2   

Interest cost

    22.9        21.2        0.1        0.2   

Participant contributions

    1.0        1.0        —          —     

Actuarial losses (gains)—net

    85.8        (5.8     1.1        (0.7

Plan curtailments and settlements

    (16.3     (1.4     —          —     

Benefits paid

    (30.1     (20.7     —          —     

Amendments

    (4.3     (0.4     (5.7     —     

Currency translation adjustment

    (64.3     12.6        (0.1     (0.3
 

 

 

   

 

 

   

 

 

   

 

 

 

Projected benefit obligation at end of year

  613.1      603.0      0.1      4.6   
 

 

 

   

 

 

   

 

 

   

 

 

 

Change in plan assets:

Fair value of plan assets at beginning of year

  281.3      —        —        —     

Fair value of plan assets at Acquisition date

  —        250.7      —        —     

Actual return on plan assets

  26.5      16.0      —        —     

Employer contributions

  40.9      28.6      —        —     

Participant contributions

  1.0      1.0      —        —     

Benefits paid

  (30.1   (20.7   —        —     

Settlements

  (2.7   (0.6   —        —     

Currency translation adjustment

  (22.4   6.3      —        —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets at end of year

  294.5      281.3      —        —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Funded status, net

$ (318.6 $ (321.7 $ (0.1 $ (4.6
 

 

 

   

 

 

   

 

 

   

 

 

 

Amounts recognized in the consolidated balance sheets consist of:

Other assets

$ 0.1    $ 0.2    $ —      $ —     

Other accrued liabilities

  (12.4   (13.3   —        —     

Accrued pension and other long-term employee benefits

  (306.3   (308.6   (0.1   (4.6
 

 

 

   

 

 

   

 

 

   

 

 

 

Net amount recognized

$ (318.6 $ (321.7 $ (0.1 $ (4.6
 

 

 

   

 

 

   

 

 

   

 

 

 

 

The PBO is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation (“ABO”) is the actuarial present value of benefits attributable to employee service rendered to date, but does not include the effects of estimated future pay increases.

The following table reflects the ABO for all defined benefit pension plans as of December 31, 2014 and 2013. Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets.

 

     Successor  
     Year Ended December 31,  
         2014              2013      

ABO

   $ 559.4       $ 541.5   

Plans with PBO in excess of plan assets:

     

PBO

   $ 606.2       $ 595.7   

ABO

   $ 553.2       $ 534.9   

Fair value plan assets

   $ 287.5       $ 273.8   

Plans with ABO in excess of plan assets:

     

PBO

   $ 602.0       $ 537.8   

ABO

   $ 550.9       $ 488.9   

Fair value plan assets

   $ 285.1       $ 227.2   

The pretax amounts not yet reflected in net periodic benefit cost and included in Accumulated other comprehensive income (loss) include the following:

 

Defined Benefits:    Successor  
     Year Ended December 31,  
         2014              2013      

Accumulated net actuarial gains (losses)

   $ (52.6    $ 10.0   

Accumulated prior service (cost) credit

     4.3         0.4   
  

 

 

    

 

 

 

Total

$ (48.3 $ 10.4   
  

 

 

    

 

 

 

 

Other Long-Term Employee Benefits:    Successor  
     Year Ended December 31,  
         2014              2013      

Accumulated net actuarial gains (losses)

   $ (0.4    $ 0.6   

Accumulated prior service (cost) credit

     4.1         —     
  

 

 

    

 

 

 

Total

$ 3.7    $ 0.6   
  

 

 

    

 

 

 

The accumulated actuarial gains (losses), net for pensions and other long-term employee benefits relate primarily to differences between the actual net periodic expense and the expected net periodic expense resulting from differences in the significant assumptions, including primarily return on assets, discount rates and healthcare trends, used in these estimates.

 

The estimated pre-tax amounts that are expected to be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost during 2015 for the defined benefit plans and other long-term employee benefit plans is as follows:

 

     2015  
     Defined Benefits      Other Long-Term
Employee Benefits
 

Amortization of net actuarial gains (losses)

   $ (1.1    $ —     

Amortization of prior service (cost) credit

     0.3         4.1   
  

 

 

    

 

 

 

Total

$ (0.8 $ 4.1   
  

 

 

    

 

 

 

 

Components of Net Periodic Benefit Cost

The following table sets forth the components of net periodic benefit costs for the Successor years ended December 31, 2014 and 2013 and the Predecessor year ended December 31, 2012.

 

     Pension Benefits  
     Successor            Predecessor  
     Year Ended
December 31,
    Period from
August 24,
2012
through
December 31,
           Period from
January 1,
2013
through
January 31,
    Year Ended
December 31,
 
     2014     2013     2012            2013     2012  

Components of net periodic benefit cost and amounts recognized in other comprehensive (income) loss:

                

Net periodic benefit (credit) cost:

                

Service cost

   $ 15.4      $ 17.0      $ —              $ 1.6      $ 14.8   

Interest cost

     22.9        21.2        —                1.8        22.0   

Expected return on plan assets

     (14.8     (11.9     —                (1.9     (18.4

Amortization of actuarial (gain) loss, net

     (0.3     —          —                1.1        5.2   

Amortization of prior service cost

     —          —          —                —          0.2   

Curtailment gain

     (7.3     —          —                —          —     

Settlement loss

     0.1        —          —                —          3.9   
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

Net periodic benefit cost

  16.0      26.3      —          2.6      27.7   
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:

 

Net actuarial (gain) loss, net

  60.6      (10.6   —          —        112.7   

Amortization of actuarial gain (loss), net

  0.3      —        —          (1.1   (5.2

Prior service benefit

  (4.3   (0.4   —          —        (0.3

Amortization of prior service cost

  —        —        —          —        (0.2

Curtailment gain

  7.3      —        —          —        —     

Settlement loss

  (0.1   —        —          —        (3.9

Net translation adjustment

  (4.9   0.6      —          —        —     
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

Total (gain) loss recognized in other comprehensive income

  58.9      (10.4   —          (1.1   103.1   
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

Total recognized in net periodic benefit cost and other comprehensive (income) loss

$ 74.9    $ 15.9    $ —        $ 1.5    $ 130.8   
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

 

     Other Long-Term Employee Benefits  
     Successor     Predecessor  
     Year Ended
December 31,
    Period from
August 24,
2012
through
December 31,
    Period from
January 1,
2013
through
January 31,
     Year Ended
December 31,
 
     2014     2013     2012     2013      2012  

Components of net periodic benefit cost and amounts recognized in other comprehensive (income) loss:

             

Net periodic benefit credit cost:

             

Service cost

   $ 0.1      $ 0.2      $ —        $ —         $ 0.3   

Interest cost

     0.1        0.2        —          —           0.5   

Amortization of actuarial loss, net

     0.1        —          —          —           —     

Amortization of prior service cost (benefit)

     (1.4     —          —          —           0.2   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic benefit cost

  (1.1   0.4      —        —        1.0   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:

 

Net actuarial (gain) loss

  (4.6   (0.7   —        —        2.7   

Amortization of actuarial gain (loss)

  (0.1   —        —        —        —     

Prior service benefit

  —        —        —        —        (5.9

Amortization of prior service benefit (cost)

  1.4      —        —        —        (0.2

Net translation adjustment

  —        0.1      —        —        —     
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total (gain) loss recognized in other comprehensive income

  (3.3   (0.6   —        —        (3.4
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total recognized in net periodic benefit cost and other comprehensive income

$ (4.4 $ (0.2 $ —      $ —      $ (2.4
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Significant Events

During the Successor year ended December 31, 2014, we recorded a curtailment gain of $7.3 million within Selling, general and administrative expenses due to an amendment to one of our pension plans. In addition, amendments to our long-term employee benefit plans resulted in increases to Accumulated other comprehensive income of $12.0 million at December 31, 2014. These amounts will continue to be recognized in earnings over the remaining future service periods of active participants.

Assumptions

We used the following assumptions in determining the benefit obligations and net periodic benefit cost:

 

     Successor           Predecessor  
       2014         2013             2012  

Defined benefits

           

Weighted-average assumptions:

           

Discount rate to determine benefit obligations

     3.23     4.11          3.38

Discount rate to determine net cost

     4.11     4.15          4.73

Rate of future compensation increases to determine benefit obligation

     3.57     3.52          3.16

Rate of future compensation increases to determine net cost

     3.52     3.69          3.33

Rate of return on plan assets to determine net cost

     5.23     5.22          7.71

 

     Successor           Predecessor  
       2014         2013             2012  

Other Long-Term Employee benefits

           

Weighted-average assumptions:

           

Discount rate to determine benefit obligations

     1.50     4.80          4.86

Discount rate to determine net cost

     4.80     4.20          7.28

Rate of future compensation increases to determine benefit obligations

     —          —               3.00

Rate of future compensation increases to determine net cost

     —          —               4.00

The discount rates used reflect the expected future cash flow based on plan provisions, participant data as of the closing date of the Acquisition and the currencies in which the expected future cash flows will occur. For the majority of our defined benefit pension obligations, we utilize prevailing long-term high quality corporate bond indices applicable to the respective country at the measurement date. In countries where established corporate bond markets do not exist, we utilize other index movement and duration analysis to determine discount rates. The long-term rate of return on plan assets assumptions reflect economic assumptions applicable to each country and assumptions related to the preliminary assessments regarding the type of investments to be held by the respective plans.

Estimated future benefit payments

The following reflects the total benefit payments expected to be paid for defined benefits:

 

Year ended December 31,

   Benefits  

2015

   $ 34.8   

2016

   $ 27.1   

2017

   $ 29.8   

2018

   $ 31.0   

2019

   $ 37.6   

2020—2024

   $ 180.3   

The following reflects the total benefit payments expected to be paid for other long-term employee benefits:

 

Year ended December 31,

   Benefits  

2015

   $ —     

2016

   $ 0.1   

2017

   $ —     

2018

   $ —     

2019

   $ —     

2020—2024

   $ —     

Plan Assets

As discussed above, the defined benefit pension plans for the subsidiaries in Austria, the United Kingdom and Germany represent single-employer plans and the related plan assets are invested within separate trusts. The defined benefit plan obligations for remaining current employees of non-U.S. subsidiaries assumed by us were carved out of the defined benefit pension plans retained by DuPont. At December 31, 2014, DuPont had completed the asset transfers for all funded plans except the plan covering our Canadian employees. The Canadian plan assets continue to be invested and managed by DuPont until the required regulatory approvals are received at which time the assets will be transferred to a newly created trust.

 

Equity securities include varying market capitalization levels. U.S. equity investments are primarily large-cap companies. Fixed income investments include corporate issued, government issued and asset backed securities. Corporate debt investments include a range of credit risk and industry diversification. Other investments include real estate and private market securities such as insurance contracts, interests in private equity, and venture capital partnerships.

Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although we believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The Company’s investment strategy in pension plan assets is to generate earnings over an extended time to help fund the cost of benefits while maintaining an adequate level of diversification for a prudent level of risk. The table below summarizes the weighted average target pension plan asset allocation at December 31 for all Axalta defined benefit plans.

 

Asset Category

   2014     2013     Target Allocation  

Equity securities

     35-40     35-40     35-40

Debt securities

     35-40     35-40     35-40

Real estate

     0-1     0-1     0-1

Other

     20-25     20-25     20-25

The table below presents the fair values of the defined benefit pension plan assets by level within the fair value hierarchy, as described in Note 3, at December 31, 2014 and 2013, respectively.

 

     Fair value measurements at
December 31, 2014
 
     Total      Level 1      Level 2      Level 3  

Asset Category:

           

Cash and cash equivalents

   $ 4.4       $ 4.4       $ —         $ —     

U.S. equity securities

     16.1         16.1         —           —     

Non-U.S. equity securities

     79.2         78.7         0.4         0.1   

Debt—government issued

     36.9         36.3         0.6         —     

Debt—corporate issued

     55.3         53.0         —           2.3   

Hedge Funds

     0.2         0.1         0.1         —     

Private market securities

     63.2         0.1         0.1         63.0   

Real estate

     0.4         —           —           0.4   
  

 

 

    

 

 

    

 

 

    

 

 

 
  255.7    $ 188.7    $ 1.2    $ 65.8   
     

 

 

    

 

 

    

 

 

 

Pension trust receivables

  38.8   
  

 

 

          

Total

$ 294.5   
  

 

 

          

 

     Fair value measurements at
December 31, 2013
 
     Total      Level 1      Level 2      Level 3  

Asset Category:

           

Cash and cash equivalents

   $ 6.7       $ 6.7       $ —         $ —     

U.S. equity securities

     13.6         13.2         0.4         —     

Non-U.S. equity securities

     71.3         70.8         0.5         —     

Debt—government issued

     34.4         34.4         —           —     

Debt—corporate issued

     52.2         49.3         2.9         —     

Hedge Funds

     0.4         0.2         0.2         —     

Private market securities

     59.5         —           0.2         59.3   

Real estate

     0.3         —           —           0.3   
  

 

 

    

 

 

    

 

 

    

 

 

 
  238.4    $ 174.6    $ 4.2    $ 59.6   
     

 

 

    

 

 

    

 

 

 

Pension trust receivables

  42.9   
  

 

 

          

Total

$ 281.3   
  

 

 

          

Level 3 assets are primarily insurance contracts pledged on behalf of employees with benefits in certain countries, ownership interests in investment partnerships, trusts that own private market securities, and real estate. The tables below present a roll forward of activity for these assets for the years ended December 31, 2014 and 2013.

 

     Level 3 assets  
     Total      Private
market
securities
     Debt and
Equity
     Real
estate
 

Ending balance at December 31, 2012

   $ 12.2       $ 10.5       $ —         $ 1.7   

Realized (loss)

     (0.1      —           —           (0.1

Change in unrealized gain

     0.2         0.2         —           —     

Purchases, sales, issues and settlements

     45.6         46.9         —           (1.3

Transfers in/(out) of Level 3

     1.7         1.7         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance at December 31, 2013

$ 59.6    $ 59.3    $ —      $ 0.3   

Realized (loss)

  —        —        —        —     

Change in unrealized gain

  0.2      —        —        0.2   

Purchases, sales, issues and settlements

  6.0      3.7      2.4      (0.1

Transfers in/(out) of Level 3

  —        —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance at December 31, 2014

$ 65.8    $ 63.0    $ 2.4    $ 0.4   
  

 

 

    

 

 

    

 

 

    

 

 

 

Assumptions and Sensitivities

The discount rate is determined as of each measurement date, based on a review of yield rates associated with long-term, high-quality corporate bonds. The calculation separately discounts benefit payments using the spot rates from a long-term, high-quality corporate bond yield curve.

The long-term rate of return assumption represents the expected average rate of earnings on the funds invested to provide for the benefits included in the benefit obligations. The long-term rate of return assumption is determined based on a number of factors, including historical market index returns, the anticipated long-term asset allocation of the plans, historical plan return data, plan expenses and the potential to outperform market index returns. The expected long-term rate of return on assets was 5.23% for 2014. For 2015, the expected long-term rate of return is 5.21%.

 

A significant factor used in estimating future per capita cost of covered healthcare benefits for our retirees and us is the healthcare cost trend rate assumption. The rate used at December 31, 2014 was 5.00% and is assumed to remain at that level thereafter. Increasing the assumed healthcare cost trend rates by one percentage point would result in additional annual costs of approximately $0.1 million. Decreasing the assumed health care cost trend rates by one percentage point would result in a decrease of approximately $0.1 million in annual costs. There is no effect on other long-term employee benefit obligations at December 31, 2014 of a one percentage point increase or decrease in assumed health care cost trend rates.

Anticipated Contributions to Defined Benefit Plan

For funded pension plans, our funding policy is to fund amounts for pension plans sufficient to meet minimum requirements set forth in applicable benefit laws and local tax laws. Based on the same assumptions used to measure our benefit obligations at December 31, 2014 we expect to contribute $16.5 million to our defined benefit plans during 2015. No contributions to our other long-term employee benefit plans are expected during 2015. No plan assets are expected to be returned to the Company in 2015.

Defined Contribution Plans

The Company sponsors defined contribution plans in both its US and non-US subsidiaries, under which salaried and certain hourly employees may defer a portion of their compensation. Eligible participants may contribute to the plan up to the allowable amount as determined by the plan of their regular compensation before taxes. All contributions and Company matches are invested at the direction of the employee. Company matching contributions vest immediately and aggregated $35.9 million for the Successor year ended December 31, 2014.

Stock-based Compensation
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Stock-based Compensation
(7) STOCK-BASED COMPENSATION

During both the three months ended March 31, 2015 and 2014, we recognized $1.8 million, in stock-based compensation expense which was allocated to costs of goods sold, selling, general and administrative expenses, and research and development expenses.

At March 31, 2015, there was $8.6 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 3.1 years. Compensation expense is recognized for the fair values of the stock options over the requisite service period of the awards using the graded-vesting attribution method.

 

During the three months ended March 31, 2015, we granted 100,945 stock options at an exercise price of $25.49 and a fair value of $6.88 per option. These options have a ten year life and vest serially over three years. We also granted 41,430 shares of restricted stock at a fair value of $25.49. The shares vest serially over three years.

Stock-based Compensation
(11) STOCK-BASED COMPENSATION

Successor period

During the years ended December 31, 2014 and 2013, we recognized $8.0 million and $7.4 million, respectively, in stock-based compensation expense which was allocated to costs of goods sold, selling, general and administrative expenses, and research and development expenses. We, with respect to stock-based compensation, recognized a tax benefit of $2.8 million and $2.6 million for the years ended December 31, 2014 and 2013, respectively.

Description of Equity Incentive Plan

In 2013, Axalta’s Board of Directors approved the Axalta Coating Systems Bermuda Co., Ltd. 2013 Equity Incentive Plan (the “2013 Plan”) which reserved an aggregate of 19,839,143 common shares of the Company for issuance to employees, directors and consultants. The 2013 Plan provides for the issuance of stock options, restricted stock or other stock-based awards. Options and restricted shares granted pursuant to the equity incentive plan must be authorized by the Board of Directors of Axalta or a designated committee thereof.

In 2014, Axalta’s Board of Directors approved the Axalta Coating Systems Ltd. 2014 Incentive Award Plan (the “2014” Plan) which reserved an aggregate 11,830,000 shares of common stock of the Company for issuance to employees, directors and consultants. The 2014 Plan provides for the issuance of stock options, restricted stock or other stock-based awards. Options and restricted shares granted pursuant to the equity incentive plan must be authorized by the Board of Directors of Axalta or a designated committee thereof. No awards have been granted under the 2014 Plan.

 

The terms of the options may vary with each grant and are determined by the Compensation Committee within the guidelines of the equity incentive plan. Options currently vest over 4.4 to 5 years, and vesting of a portion of the options could accelerate in the event of certain changes in control. Option life cannot exceed ten years. In 2013, we granted approximately 4.1 million, 5.7 million and 6.4 million in non-qualified stock options to certain employees with strike prices of $5.92, $8.88 and $11.84 (per share), respectively. During 2014, we granted 1.6 million non-qualified service-based stock options to certain employees and directors with strike prices of $5.92, $7.21, $8.88 and $11.84 per share.

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 2014 and 2013 was $1.92 and $1.38 per share, respectively. Principal weighted average assumptions used in applying the Black-Scholes model were as follows:

 

     2014 Grants     2013 Grants  

Expected Term

     7.81 years        7.81 years   

Volatility

     28.28     28.61

Dividend Yield

     —          —     

Discount Rate

     2.21     2.13

For the 2014 stock awards, we estimated the per share fair value of our common stock using a contemporaneous valuation consistent with the American Institute of Certified Public Accountants Practice Aid, “Valuation of Privately-Held Company Equity Securities Issued as Compensation” (the “Practice Aid”). In conducting this valuation, we considered all objective and subjective factors that we believed to be relevant, including our best estimate of our business condition, prospects and operating performance. Within this contemporaneous valuation, a range of factors, assumptions and methodologies were used. The significant factors included:

 

    the fact that we were a private company with illiquid securities;

 

    our historical operating results;

 

    our discounted future cash flows, based on our projected operating results;

 

    valuations of comparable public companies; and

 

    the risk involved in the investment, as related to earnings stability, capital structure, competition and market potential.

For the contemporaneous valuation of our common stock, management estimated, as of the issuance date, our enterprise value on a continuing operations basis, using the income and market approaches, as described in the Practice Aid. The income approach utilized the discounted cash flow (“DCF”) methodology based on our financial forecasts and projections, as detailed below. The market approach utilized the Guideline Public Company and Guideline Transactions methods, as detailed below.

For the DCF methodology, we prepared annual projections of future cash flows through 2018. Beyond 2018, projected cash flows through the terminal year were projected at long-term sustainable growth rates consistent with long-term inflationary and industry expectations. Our projections of future cash flows were based on our estimated net debt-free cash flows and were discounted to the valuation date using a weighted-average cost of capital estimated based on market participant assumptions.

For the Guideline Public Company and Guideline Transactions methods, we identified a group of comparable public companies and recent transactions within the chemicals industry. For the comparable companies, we estimated market multiples based on trading prices and trailing 12 months EBITDA. These multiples were then applied to our trailing 12 months EBITDA. When selecting comparable companies, consideration was given to industry similarity, their specific products offered, financial data availability and capital structure.

For the comparable transactions, we estimated market multiples based on prices paid for the related transactions and trailing 12 months EBITDA. These multiples were then applied to our trailing 12 months EBITDA. The results of the market approaches corroborated the fair value determined using the income approach.

For the 2013 grants, the market value of the stock was estimated based upon the Acquisition transaction since the Company was not publicly traded at that time and there had been no significant changes in operations since the closing date of February 1, 2013.

To estimate the expected stock option term for the $5.92 and $7.21 stock options referred to above, we used the simplified method as the options were granted at fair value and Axalta, a privately-held company, had no exercise history. Based upon this simplified method the $5.92 and $7.21 per share stock options have an expected term of 6.5 years. The strike price for the $8.88 per share and $11.84 per share tranches of options exceeded fair value at the grant date which required the use of an estimate of an implicitly longer holding period, resulting in the term of 8.25 years.

We do not anticipate paying cash dividends in the foreseeable future and, therefore, use an expected dividend yield of zero. Volatility for outstanding grants is based upon the peer group since the Company was privately-held at the date of grant. 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 December 31, 2014 and changes during the year then ended, is presented below:

 

     Awards
(millions)
     Weighted-
Average
Exercise
Price
     Aggregate
Intrinsic
Value
(millions)
     Weighted
Average
Remaining
Contractual
Life (years)
 

Outstanding at January 1, 2014

     16.2       $ 9.32         

Granted

     1.6       $ 9.62         

Exercised

     (0.4    $ 8.03         

Forfeited

     (0.3    $ 9.32         
  

 

 

          

Outstanding at December 31, 2014

  17.1    $ 9.38   
  

 

 

          

Vested and expected to vest at December 31, 2014

  17.1    $ 9.38    $ 284.5      8.58   

Exercisable at December 31, 2014

  2.9    $ 9.49    $ 47.6      8.44   

Cash received by the company upon exercise of options in 2014 was $3.0 million. The tax benefit related to these exercises is immaterial. 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 in 2014 was not material.

The fair value of shares vested during 2014 and 2013 was $4.5 million and $0.0 million, respectively.

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 December 31, 2014 and 2013, the Company has estimated its annual forfeiture rate at 0% due to its limited history and expectations of forfeitures.

At December 31, 2014, there was $9.7 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 3.4 years. Compensation expense is recognized for the fair values of the stock options over the requisite service period of the awards using the graded-vesting attribution method.

Predecessor periods

DuPont maintained certain stock-based compensation plans for the benefit of certain of its officers, directors’ and employees, including, prior to the Acquisition, certain DPC employees. DPC recognized stock-based compensation within the combined statement of operations based upon fair values. The fair value of awards granted totaled $2.0 million for the Predecessor year ended December 31, 2012.

Total stock-based compensation expense included in the combined statement of operations was $0.1 million and $0.5 million for the Predecessor period from January 1, 2013 through January 31, 2013 and the Predecessor year ended December 31, 2012, respectively.

Related Party Transactions
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Related Party Transactions
(8) RELATED PARTY TRANSACTIONS

Carlyle Group L.P. and its affiliates (“Carlyle”)

We entered into a consulting agreement with Carlyle Investment Management L.L.C. (“Carlyle Investment”), an affiliate of Carlyle pursuant to which Carlyle Investment provides certain consulting services to Axalta. Under this agreement, subject to certain conditions, we were required to pay an annual consulting fee to Carlyle Investment of $3.0 million payable in equal quarterly installments and reimburse Carlyle Investment for out-pocket expenses incurred in providing the consulting services. During the three months ended March 31, 2014, we recorded expense of $0.8 million related to this consulting agreement. During the three months ended March 31, 2015, we recorded no expense as a result of the termination of the consulting agreement upon completion of the IPO in November 2014.

Service King Collision Repair

Service King Collision Repair, a portfolio company of Carlyle, has purchased products from our distributors in the past and may continue to do so in the future. During the third quarter of 2014, Carlyle sold their majority interest in Service King Collision Repair, thus making the entity no longer a related party. Related party sales prior to this transaction were $2.0 million for the three months ended March 31, 2014.

Related Party Transactions
(12) RELATED PARTY TRANSACTIONS

Carlyle Group L.P. and its affiliates (“Carlyle”)

We entered into a consulting agreement with Carlyle Investment Management L.L.C. (“Carlyle Investment”), an affiliate of Carlyle pursuant to which Carlyle Investment provides certain consulting services to Axalta. Under this agreement, subject to certain conditions, we were required to pay an annual consulting fee to Carlyle Investment of $3.0 million payable in equal quarterly installments and reimburse Carlyle Investment for out-pocket expenses incurred in providing the consulting services. During the Successor year ended December 31, 2014, we recorded expense of $3.2 million in regular monthly management fees and out of pocket costs as well as a $13.4 million pre-tax charge related to the termination of the agreement upon completion of the IPO.

During the Successor year ended December 31, 2013, we recorded expense of $3.1 million related to this consulting agreement. In addition, Carlyle Investment received a one-time fee of $35.0 million upon effectiveness of the Acquisition for services rendered in connection with the Acquisition and related acquisition financing. Of this amount, $21.0 million was recorded as merger and acquisition expenses in the Successor year ended December 31, 2013, and $14.0 million was recorded as a component of deferred financing costs, which is amortized to interest expense.

Service King Collision Repair

Service King Collision Repair, a portfolio company of funds affiliated with Carlyle, has purchased products from our distributors in the past and may continue to do so in the future. During the third quarter 2014, Carlyle sold their majority interest in Service King Collision Repair, thus making the entity no longer a related party. Related party sales prior to this transaction were $4.0 million and $2.0 million for the Successor years ended December 31, 2014 and 2013, respectively. During the Predecessor period from January 1, 2013 through January 31, 2013 sales to Service King Collision Repair were immaterial.

 

Other

A director of the Company is the Chairman and Chief Executive Officer of an international management consulting firm focused on the automotive and industrial sectors. In connection with the Acquisition, we incurred consulting fees and expenses from the consulting firm of approximately $2.1 million, of which $0.1 million was incurred in the Successor year ended December 31, 2013 and the remainder was incurred in the Successor period from August 24, 2012 through December 31, 2012. As part of the compensation for the consulting services, we granted the consulting firm a stock option award to purchase up to 352,143 of our common shares which had a fair value of approximately $0.5 million.

Other Expense, Net
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Other Expense, Net
(9) OTHER EXPENSE, NET

 

     Three Months Ended March 31,  
              2015                        2014           

Exchange losses, net

   $ 8.7       $ 0.1   

Management fees and expenses

     —           0.8   

Other (income) expense

     (4.8      3.6   
  

 

 

    

 

 

 

Total

$ 3.9    $ 4.5   
  

 

 

    

 

 

 

Our net exchange losses for the three months ended March 31, 2015 and 2014 consisted of remeasurement losses primarily related to intercompany transactions denominated in currencies different from the functional currency of the relevant subsidiary partially offset by gains on our Euro borrowings and our Venezuela operations, as discussed below.

Based on our participation in Venezuela’s Complementary System of Foreign Currency Administration (SICAD I) auction process during the year ended December 31, 2014, we changed the exchange rate we used to remeasure our Venezuelan subsidiary’s financial statements into U.S. dollars to an exchange rate of 12.0 to 1 at December 31, 2014. We determined that the exchange rate of 12.0 to 1 remained the appropriate rate at March 31, 2015 given that we believe the equity of our Venezuelan subsidiary would be realized through a dividend utilizing the auction process through SICAD I.

In February 2015, the Venezuelan government enacted additional changes to its foreign exchange regime. The changes maintain a three-tiered system, including the Official Rate determined by CENCOEX, which remains at 6.3 to 1, and the SICAD I auction market which continued to trade at 12.0 to 1. There was a third market, SICAD II, which has been eliminated and a new, alternative currency market, the Marginal Foreign Exchange System (“SIMADI”), has been created with a floating exchange rate generally based on supply and demand. At March 31, 2015 the exchange rate for the SIMADI market was approximately 180.0 to 1.

At March 31, 2015, our Venezuelan subsidiary was in a net monetary asset position of $13.7 million and had non-U.S. dollar denominated net non-monetary assets of $155.7 million. We continue to assess the impact, if any, of the SIMADI exchange rate as the government of Venezuela issues regulations to implement it, but at this time it is unclear based on the current governmental policies, when considered with the foreign exchange process and other circumstances in Venezuela, whether these events will have any financial impact on the operations of our Venezuelan subsidiary. A change of our exchange rate to the SIMADI exchange rate would potentially have a material impact on our unaudited condensed consolidated financial statements.

In March 2015, we acquired an additional 25% interest in an equity method investee for a purchase price of $4.3 million, which was previously accounted for as an equity method investment. 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. As a result of the acquisition, we consolidated the fair value of the net assets of the joint venture in our interim unaudited condensed consolidated balance sheet at March 31, 2015, with the excess of the purchase price over the net assets acquired resulting in preliminary goodwill of $12.5 million.

Other Expense, Net
(13) OTHER EXPENSE, NET

 

    Successor            Predecessor  
    Year Ended
December 31,
    Period from
August 24, 2012
through

December 31,
           Period from
January 1, 2013
through
January 31,
     Year Ended
December 31,
 
    2014     2013     2012            2013      2012  

Exchange losses, net

  $ 81.2      $ 48.9      $ —              $ 4.5       $ 17.7   

Management fees and expenses

    16.6        3.1        —                —           —     

Other

    17.2        (3.5     —                0.5         (1.4
 

 

 

   

 

 

   

 

 

         

 

 

    

 

 

 

Total

$ 115.0    $ 48.5    $ —        $ 5.0    $ 16.3   
 

 

 

   

 

 

   

 

 

         

 

 

    

 

 

 

Our net foreign exchange losses for the year ended December 31, 2014 and 2013 consisted of remeasurement losses primarily related to intercompany transactions denominated in currencies different from the functional currency of the relevant subsidiary partially offset by gains on our Euro borrowings and our Venezuela operations, as discussed below.

Based on changes to the Venezuelan currency exchange rate mechanisms in 2014 and our participation in Venezuela’s Complementary System of Foreign Currency Administration (SICAD I) auction process during the year ended December 31, 2014, we changed the exchange rate we used to remeasure our Venezuelan subsidiary’s financial statements into U.S. dollars. The exchange rate was determined by such auction process, which was 12.0 to 1 as of December 31, 2014 compared to the historical indexed rate of 6.3 to 1. We determined that the exchange rate of 12.0 to 1 was appropriate given trends in the SICAD 1 auction process. Further, we also believe the equity of our Venezuelan subsidiary would be realized through a dividend utilizing the auction process through SICAD I. The devaluations of the exchange rates resulted in net gains of $17.0 million for the year ended December 31, 2014 primarily due to our Venezuelan operations being in a net monetary liability position.

In February 2015, the Venezuelan government enacted additional changes to its foreign exchange regime. The changes maintain a three-tiered system, including the Official Rate determined by CENCOEX, which remains at 6.3 to 1, and the SICAD I auction market which continued to trade at 12.0 to 1. The SICAD II market has been eliminated and a new, alternative currency market, the Marginal Foreign Exchange System (“SIMADI”), has been created with a floating exchange rate generally based on supply and demand. An initial exchange rate for the SIMADI market was established at approximately 170.0 to 1.

At December 31, 2014, our Venezuelan subsidiary was in a net monetary liability position of $9.1 million and had non-U.S. Dollar denominated net non-monetary assets of $150.9 million. We continue to assess the impact, if any, of these changes as the government of Venezuela issues regulations to implement them, but at this time it is unclear based on the current governmental policies, when considered with the foreign exchange process and other circumstances in Venezuela, whether these events will have any financial impact on the operations of our Venezuelan subsidiary.

Income Taxes
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Income Taxes
(10) INCOME TAXES

Our effective income tax rates for the three months ended March 31, 2015 and March 31, 2014 are as follows:

 

     Three Months Ended March 31,  
              2015                       2014           

Effective Tax Rate

     2.5     144.6

The lower effective tax rate for the three months ended March 31, 2015 was primarily due to the favorable impact of the tax benefits associated with currency exchange losses, which had no impact to income before taxes, and the impact of earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate of 35%.

Income Taxes
(14) INCOME TAXES

Domestic and Foreign Components of Income (Loss) Before Income Taxes

 

     Successor           Predecessor  
     Year Ended
December 31,
     Period from
August 24, 2012
through

December 31,
          Period from
January 1, 2013
through
January 31,
     Year Ended
December 31,
 
     2014      2013      2012           2013      2012  

Domestic

   $ (8.8    $ (153.8    $ —             $ (1.5    $ 82.8   

Foreign

     45.6         (109.9      (29.0          17.1         310.2   
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

$ 36.8    $ (263.7 $ (29.0   $ 15.6    $ 393.0   
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Provision (Benefit) for Income Taxes

 

    Successor  
    Year Ended December 31,
2014
    Year Ended December 31,
2013
    Period from August 24,
2012 through December 31, 2012
 
    Current     Deferred     Total     Current     Deferred     Total     Current     Deferred     Total  

U.S. Federal

  $ —        $ (2.1   $ (2.1   $ —        $ (43.7   $ (43.7   $ —        $ —        $ —     

State

    2.0        (2.9     (0.9     2.3        (2.5     (0.2     —          —          —     

Foreign

    38.3        (33.2     5.1        73.7        (74.6     (0.9     —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 40.3    $ (38.2 $ 2.1    $ 76.0    $ (120.8 $ (44.8 $ —      $ —      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Predecessor  
     Period from January 1, 2013
through January 31, 2013
     Year Ended December 31, 2012  
     Current      Deferred      Total      Current      Deferred      Total  

U.S. Federal

   $ (8.8    $ 7.0       $ (1.8    $ 30.9       $ (4.5    $ 26.4   

State

     0.1         (0.2      (0.1      6.6         (0.4      6.2   

Foreign

     6.7         2.3         9.0         98.6         14.0         112.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ (2.0 $ 9.1    $ 7.1    $ 136.1    $ 9.1    $ 145.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Reconciliation to US Statutory Rate

 

     Successor          Predecessor  
     Year Ended
December 31,
2014
    Year Ended
December 31,
2013
    Period from
August 24,
2012 through
December 31,
2012
         Period from
January 1
2013 through
January 31,
2013
    Year Ended
December 31,
2012
 

Statutory U.S. federal income tax / rate(1)

   $ 12.9        35.0   $ (92.3     35.0   $ (10.1     35.0      $ 5.5        35.0   $ 137.6        35.0

Foreign income taxed at rates other than 35%

     (46.7     (127.0     (36.6     13.9        10.1        (35.0        1.0        6.6        (10.9     (2.8

Changes in valuation allowances

     44.4        120.9        55.0        (20.9     —          —             1.4        8.9        9.8        2.5   

Foreign exchange (gain) loss

     8.7        23.7        8.7        (3.3     —          —             0.5        3.1        4.7        1.2   

Unrecognized tax benefits(2)

     (44.0     (119.7     35.1        (13.2     —          —             —          —          —          —     

Withholding taxes, net

     (0.3     (0.8     8.3        (3.2     —          —             —          —          —          —     

Non-deductible interest

     15.4        41.9        6.4        (2.4     —          —             —          —          —          —     

Non-deductible expenses

     14.2        38.6        19.4        (7.4     —          —             —          —          —          —     

Tax credits

     (3.6     (9.8     (1.0     0.4        —          —             —          —          —          —     

Capital loss(3)

     —          —          (46.7     17.7        —          —             —          —          —          —     

Other—net

     1.1        2.9        (1.1     0.4        —          —             (1.3     (8.0     4.0        1.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

 

Total income tax (benefit)/ effective tax rate

$ 2.1      5.7 $ (44.8   17.0 $ —        —      $ 7.1      45.6 $ 145.2      37.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) The U.S. statutory rate has been used as management believes it is more meaningful to the Company.
(2) Within this amount, the Company released and recorded an unrecognized tax benefit of $21.1 million related to non-deductible interest and debt acquisition costs in 2014 and 2013. These adjustments were fully offset by changes in the valuation allowance.
(3) In 2013, the Company recognized a tax benefit of $46.7 million related to a capital loss, which is fully offset by a $46.7 million increase to the valuation allowance.

 

Deferred Tax Balances

 

     Successor  
     Year Ended
December 31,
 
     2014      2013  

Deferred tax asset

     

Tax loss and credit carryforwards

   $ 185.6       $ 111.7   

Goodwill and intangibles

     90.8         89.4   

Compensation & employee benefits

     92.4         79.1   

Accruals & other reserves

     58.0         40.5   

Interest expense

     13.4         8.6   

Total deferred tax assets

     440.2         329.3   

Less: Valuation allowance

     (101.9      (63.4
  

 

 

    

 

 

 

Net, deferred tax assets

  338.3      265.9   

Deferred tax liabilities

Inventory

  (3.0   (1.3

Property, Plant & Equipment

  (215.0   (218.5

Accounts Receivable & Other Assets

  (2.5   (8.4

Equity Investment & Other Securities

  (2.2   (5.8

Unremitted earnings

  (8.5   (15.9

Long-Term Debt

  (8.1   —     
  

 

 

    

 

 

 

Total deferred tax liabilities

  (239.3   (249.9
  

 

 

    

 

 

 

Net deferred tax asset/(liability)

$ 99.0    $ 16.0   

Current asset

$ 64.5    $ 30.0   

Current liability

  (7.3   (5.5

Non-current assets

  250.0      271.9   

Non-current liability

  (208.2   (280.4
  

 

 

    

 

 

 

Net deferred tax asset

$ 99.0    $ 16.0   
  

 

 

    

 

 

 

At December 31, 2014, the Company had $118.3 million of net operating and capital loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $78.2 million have indefinite carryforward periods, and the remaining $40.1 million are subject to expiration between the years 2019 through 2026. In the U.S., there were approximately $53.2 million of federal net operating loss carryforwards (tax effected) subject to expiration in years beyond 2032, and $2.5 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2018 and 2034. Tax credit carryforwards at December 31, 2014 amounted to $11.6 million, of which $0.6 million is subject to expiration in 2016. The remaining tax credit carryforwards expire between the years 2018 and 2034.

At December 31, 2013, the Company had $83.1 million of net operating and capital loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $53.2 million have indefinite carryforward periods, and the remaining $29.9 million are subject to expiration between the years 2018 through 2023. In the U.S., there were approximately $24.3 million of federal net operating loss carryforwards (tax effected) subject to expirations in years beyond 2032, and $0.6 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2019 and 2034. Tax credit carryforwards at December 31, 2013, amounted to $3.7 million, which are subject to expiration between the years 2023 through 2033.

 

The Company had valuation allowances that primarily related to the realization of recorded tax benefits on tax loss carryforwards from operations in Austria, Luxembourg, Netherlands and the United Kingdom at December 31, 2014 and 2013 of $101.9 million and $63.4 million, respectively.

The Company has determined that the unremitted earnings of our subsidiaries will not be permanently reinvested, and accordingly, has provided a deferred tax liability at December 31, 2014 and 2013 of $8.5 million and $15.9 million, respectively. The Company has included in the current income tax provision a total benefit of $4.7 million, of which $1.5 million relates to subsidiary earnings and $3.2 million relates to the benefit of reduced withholding tax rates on prior year earnings.

Total Gross Unrecognized Tax Benefits

 

    Successor           Predecessor  
    Year Ended
December 31,
    Period from
January 1
2013 through
January 31,
          Period from
January 1
2013 through
January 31,
    Year Ended
December 31,
 
    2014     2013     2013           2013     2012  

Balance at January 1

  $ 38.9      $ —        $ —             $ —        $ —     

Increases related to acquisition

    —          11.3        —               —          —     

Increases related to positions taken on items from prior years

    —          —          —               —          —     

Decreases related to positions taken on items from prior years

    (33.6     —          —               —          —     

Increases related to positions taken in the current year

    —          27.6        —               —          —     

Settlement of uncertain tax positions with tax authorities

    —          —          —               —          —     

Decreases due to expiration of statutes of limitations

    —          —          —               —          —     
 

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Balance at December 31

$ 5.3    $ 38.9    $ —        $ —      $ —     
 

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

At December 31, 2014, the total amount of gross unrecognized tax benefits was $5.3 million ($38.9 million at December 31, 2013), of which $5.3 million would impact the effective tax rate, if recognized ($17.8 million at December 31, 2013).

Interest and penalties associated with gross unrecognized tax benefits are included as components of the “Provision (benefit) for income taxes,” and totaled $6.8 million in 2014 and a charge of $7.4 million in 2013. Accrued interest and penalties are included within the related tax liability line in the balance sheet. The Company’s accrual for interest and penalties at December 31, 2014 and 2013 was $0.3 million and $7.1 million, respectively.

During 2014, resolution on two separate tax matters resulted in the adjustment of gross unrecognized tax benefits. In April 2014, documentation was secured to support tax deductions related to pre-acquisition activities. Additionally, in December 2014, the Company received affirmative guidance with respect to the treatment of certain 2013 charges. As a result, the Company believes it is more likely than not to sustain the position and adjusted the unrecognized tax benefits related to these matters, resulting in a tax benefit of $31.0 million (offset by an unfavorable change in the valuation allowance of $21.1 million).

The Company is subject to income tax in approximately 40 jurisdictions outside the U.S. The Company’s significant operations outside the U.S. are located in Belgium, China, Germany, Mexico, and United Kingdom. The statute of limitations varies by jurisdiction with 2006 being the oldest tax year still open in the material jurisdictions. The Company is currently under audit in certain jurisdictions for tax years under responsibility of the predecessor, as well as tax periods under the Company’s ownership. Pursuant to the acquisition agreement, all tax liabilities related to tax years prior to 2013 acquisition will be indemnified by DuPont.

As of December 31, 2014 and 2013, we had gross unrecognized tax benefits of $5.6 million and $46.1 million, respectively, including interest and penalties. Due to the high degree of uncertainty regarding future timing of cash flows associated with these liabilities, we are unable to estimate the years in which settlement will occur with the respective taxing authorities.

Earnings (Loss) Per Common Share
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Earnings (Loss) Per Common Share
(11) EARNINGS (LOSS) PER COMMON SHARE

Basic earnings (loss) per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share includes the effect of potential dilution from the exercise of outstanding stock options and restricted shares. Potentially dilutive securities have been excluded in the weighted average number of common shares used for the calculation of earnings (loss) per share in periods of net loss because the effect of such securities would be anti-dilutive. A reconciliation of the Company’s basic and diluted earnings (loss) per common share is as follows (in millions, except earnings (loss) per share):

 

     Three Months Ended March 31,  

(In millions, except per share data)

            2015                        2014           

Net income (loss) to common shareholders

   $ 45.1       $ (4.3

Basic weighted average shares outstanding

     229.8         229.1   

Diluted weighted average shares outstanding

     237.0         229.1   

Earnings per Common Share:

     

Basic net income (loss) per share

   $ 0.20       $ (0.02

Diluted net income (loss) per share

   $ 0.19       $ (0.02

 

The number of anti-dilutive shares that have been excluded in the computation of diluted earnings (loss) per share for the three months ended March 31, 2015 and 2014 were 0.0 million and 16.2 million, respectively.

Earnings (Loss) Per Common Share
(15) 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 earnings per common share includes the effect of potential dilution from the exercise of outstanding stock options. Potentially dilutive securities have been excluded in the weighted average number of common shares used for the calculation of earnings per share in periods of net loss because the effect of such securities would be anti-dilutive. A reconciliation of the Company’s basic and diluted earnings per common share is as follows (in millions, except earnings per share):

 

     Successor  
     Year Ended
December 31,
     Period from
August 24, 2012
through
December 31,
2012
 
(In millions, except per share data)    2014      2013      2012  

Net income (loss) attributable to Axalta

   $ 27.4       $ (224.9    $ (29.0

Pre-Acquisition net loss attributable to Axalta

     —           (3.9      (29.0
  

 

 

    

 

 

    

 

 

 

Net income (loss) to common shareholders(1)

$ 27.4    $ (221.0 $ —     

Basic and diluted weighted average shares outstanding(1)

  229.3      228.3      —     

Diluted weighted average shares outstanding

  230.3      228.3      —     

Earnings per Common Share:

Basic net income (loss) per share

$ 0.12    $ (0.97 $ —     

Diluted net income (loss) per share

$ 0.12    $ (0.97 $ —     

 

  (1) As of February 1, 2013, the date of the Acquisition, the Company received the initial Equity Contribution of $1,350.0 million. Accordingly, the net loss to common shareholders and the weighted average shares outstanding calculation is based on the period from February 1, 2013 to December 31, 2013.

The number of anti-dilutive shares (stock options) that have been excluded in the computation of diluted earnings per share for the Successor years ended December 31, 2014 and 2013 were 7.2 million and 16.3 million, respectively. There were no anti-dilutive shares for the Successor period ending December 31, 2012.

Basic and diluted weighted average shares outstanding have been adjusted to reflect the Company’s 100,000 for 1 stock split which occurred in July 2013, and the Company’s 1.69 for 1 stock split which occurred in October 2014.

Accounts and Notes Receivable, Net
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Accounts and Notes Receivable, Net
(12) ACCOUNTS AND NOTES RECEIVABLE, NET

 

     March 31, 2015      December 31, 2014  

Accounts receivable—trade, net

   $ 664.1       $ 638.3   

Notes receivable

     42.9         45.5   

Other

     126.0         136.6   
  

 

 

    

 

 

 

Total

$ 833.0    $ 820.4   
  

 

 

    

 

 

 

Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $9.5 million and $9.9 million at March 31, 2015 and December 31, 2014, respectively. Bad debt expense, within selling, general, and administration expenses, was $0.7 million and $1.2 million for the three months ended March 31, 2015 and 2014, respectively.

Accounts and Notes Receivable, Net
(16) ACCOUNTS AND NOTES RECEIVABLE, NET

 

     Successor  
     Year Ended
December 31,
 
     2014      2013  

Accounts receivable—trade, net

   $ 638.3       $ 637.5   

Notes receivable

     45.5         44.7   

Other

     136.6         183.7   
  

 

 

    

 

 

 

Total

$ 820.4    $ 865.9   
  

 

 

    

 

 

 

Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $9.9 million and $6.5 million at December 31, 2014 and 2013, respectively. Bad debt expense was $5.1 million and $5.4 million for the Successor years ended December 31, 2014 and 2013, respectively, $0.2 million for the Predecessor period from January 1, 2013 through January 31, 2013 and $5.0 million for the Predecessor year ended December 31, 2012.

Inventories
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Inventories
(13) INVENTORIES

 

     March 31, 2015      December 31, 2014  

Finished products

   $ 316.3       $ 323.7   

Semi-finished products

     87.9         81.3   

Raw materials and supplies

     137.1         133.3   
  

 

 

    

 

 

 

Total

$ 541.3    $ 538.3   
  

 

 

    

 

 

 

Stores and supplies inventories of $20.8 million and $20.9 million at March 31, 2015 and December 31, 2014, respectively, were valued under the weighted average cost method.

Inventories
(17) INVENTORIES

 

     Successor  
     Year Ended
December 31,
 
         2014              2013      

Finished products

   $ 323.7       $ 329.3   

Semi-finished products

     81.3         90.2   

Raw materials and supplies

     133.3         130.7   
  

 

 

    

 

 

 

Total

$ 538.3    $ 550.2   
  

 

 

    

 

 

 

Stores and supplies inventories of $20.9 million and $21.2 million at December 31, 2014 and December 31, 2013 were valued under the weighted average cost method.

Property, Plant and Equipment, Net
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment, Net
(14) PROPERTY, PLANT AND EQUIPMENT, NET

Depreciation expense amounted to $41.3 million and $48.4 million for the three months ended March 31, 2015 and 2014, respectively.

 

     March 31, 2015      December 31, 2014  

Property, plant and equipment

   $ 1,776.3       $ 1,858.2   

Accumulated depreciation

     (364.6      (344.1
  

 

 

    

 

 

 

Property, plant, and equipment, net

$ 1,411.7    $ 1,514.1   
  

 

 

    

 

 

 
Property, Plant and Equipment, Net
(18) PROPERTY, PLANT AND EQUIPMENT, NET

Depreciation expense amounted to $176.6 million and $174.3 million for the Successor years ended December 31, 2014 and 2013, respectively. Depreciation expense amounted to $7.2 million for the Predecessor period from January 1, 2013 through January 31, 2013 and $82.9 million for the Predecessor year ended December 31, 2012.

 

          Successor  
          Year Ended
December 31,
 
     Useful Lives (years)    2014      2013  

Land

      $ 90.5       $ 99.9   

Buildings and improvements

   5 -25      418.4         430.7   

Machinery and equipment

   3 -25      1,060.1         1,087.0   

Software

   5 - 7      122.1         42.4   

Other

   3 -20      29.1         26.3   

Construction in progress

        138.0         119.9   
     

 

 

    

 

 

 

Total

  1,858.2      1,806.2   
     

 

 

    

 

 

 

Accumulated depreciation

  (344.1   (183.6
     

 

 

    

 

 

 

Property, plant, and equipment, net

$ 1,514.1    $ 1,622.6   
     

 

 

    

 

 

 
Borrowings
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Borrowings
(15) BORROWINGS

Borrowings are summarized as follows:

 

     March 31, 2015      December 31, 2014  

Dollar Term Loan

   $ 2,159.8       $ 2,165.5   

Euro Term Loan

     425.0         481.0   

Dollar Senior Notes

     750.0         750.0   

Euro Senior Notes

     270.4         305.3   

Short-term borrowings

     14.3         12.2   

Other borrowings

     6.1         0.7   

Unamortized original issue discount

     (17.3      (18.3
  

 

 

    

 

 

 
$ 3,608.3    $ 3,696.4   

Less:

Short term borrowings

$ 14.3    $ 12.2   

Current portion of long-term borrowings

  27.3      27.9   
  

 

 

    

 

 

 

Long-term debt

$ 3,566.7    $ 3,656.3   
  

 

 

    

 

 

 

Senior Secured Credit Facilities, as amended

On February 3, 2014, 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, 2015.

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 amortized as interest expense over the life of the Senior Secured Credit Facilities.

Amortization expense related to deferred financing costs, net for the three months ended March 31, 2015 and 2014 was $3.2 million and $3.3 million, respectively.

Amortization expense related to original issue discounts for the three months ended March 31, 2015 and 2014 were $0.8 million and $0.9 million, respectively.

At March 31, 2015 and December 31, 2014 there were no borrowings under the Revolving Credit Facility. At March 31, 2015 and December 31, 2014, letters of credit issued under the Revolving Credit Facility totaled $21.3 million and $15.5 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $378.7 million and $384.5 million at March 31, 2015 and December 31, 2014, respectively.

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 within deferred financing costs, net and are amortized as interest expense over the life of the Senior Notes. At March 31, 2015 and December 31, 2014, the remaining unamortized balance was $24.3 million and $25.3 million, respectively. The expense related to the amortization of the deferred financing costs was $1.0 million for both of the three months ended March 31, 2015 and 2014.

 

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 within “Deferred financing costs, net” and are amortized into interest expense over the life of the Euro Senior Notes. At March 31, 2015 and December 31, 2014, the remaining unamortized balances was $7.4 million and $7.7 million, respectively.

On or after February 1, 2016, 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

Notwithstanding the foregoing, at any time and from time to time prior to February 1, 2016, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the Euro Senior Notes), at a redemption price of 105.750% plus accrued and unpaid interest, if any, to the redemption date.

In addition, we have the option to redeem up to 10% of the Euro Senior Notes during any 12-month period from issue date until February 1, 2016 at a redemption price of 103.0%, plus accrued and unpaid interest, if any, to the redemption date.

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, are recorded within “Deferred financing costs, net” and are amortized as interest expense over the life of the Dollar Senior Notes. At March 31, 2015 and December 31, 2014, the remaining unamortized balances was $16.9 million and $17.6 million, respectively.

On or after February 1, 2016, 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

Notwithstanding the foregoing, at any time and from time to time prior to February 1, 2016, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the Dollar Senior Notes), at a redemption price of 107.375% plus accrued and unpaid interest, if any, to the redemption date.

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, 2015.

 

Remainder of 2015

   $ 34.2   

2016

     29.7   

2017

     29.2   

2018

     28.1   

2019

     27.3   

Thereafter

     3,477.1   
  

 

 

 
$ 3,625.6   
  

 

 

 

Reclassifications and revisions

During 2014, the Company identified errors in the determination of the effective interest rate amortization for the Deferred Financing Costs and Original Issue Discounts that were incurred in 2013. The correction of these items impacted the condensed consolidated statement of operations and statements of comprehensive income (loss) for the three months ended March 31, 2014. The Company assessed the applicable guidance and concluded that these errors were not material to the Company’s consolidated financial statements for the aforementioned prior periods; however, the Company did conclude that correcting these prior misstatements would be significant to the three and nine-month periods ended September 30, 2014 condensed consolidated statement of operations. As a result of this analysis, the unaudited condensed consolidated financial statements at March 31, 2014 presented herein have been revised to reflect the correction of the aforementioned errors. The correction had an impact of $2.8 million on Net income (loss) and Net income (loss) attributable to controlling interests for the three months ended March 31, 2014 through a reduction in interest expense of $3.1 million (net of a tax provision of $0.3 million).

Borrowings
(22) BORROWINGS

Borrowings are summarized as follows:

 

     Successor  
     Year Ended
December 31,
 
     2014      2013  

Dollar Term Loan

   $ 2,165.5       $ 2,282.8   

Euro Term Loan

     481.0         547.7   

Dollar Senior Notes

     750.0         750.0   

Euro Senior Notes

     305.3         344.9   

Short-term borrowings

     12.2         18.2   

Other borrowings

     0.7         —     

Unamortized original issue discount

     (18.3      (22.7
  

 

 

    

 

 

 
$ 3,696.4    $ 3,920.9   

Less:

Short term borrowings

$ 12.2    $ 18.2   

Current portion of long-term borrowings

  27.9      28.5   
  

 

 

    

 

 

 

Long-term debt

$ 3,656.3    $ 3,874.2   
  

 

 

    

 

 

 

 

  (a) Senior Secured Credit Facilities, as amended

On February 3, 2014, 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”). 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”). 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 and 2.00% per annum for Base Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities. 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 2014, our Total Net Leverage Ratio was confirmed to be less than 4.50:1.00. Concurrently, the applicable rates were changed to 2.75% for the New Dollar Term Loans and 3.00% for the New Euro Term Loans through December 31, 2014.

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, the Company may increase available revolving or term facility borrowings 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 or 3.50:1, respectively) of Excess Cash Flow.

During the year ended December 31, 2014, we voluntarily repaid $100.0 million of the outstanding New Dollar Term Loan. Concurrent with this action, we recorded a pre-tax loss on extinguishment of $3.0 million, consisting of the write-off of $2.2 million and $0.8 million of unamortized deferred financing costs and original issue discounts, respectively.

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 amortized as interest expense over the life of the Senior Secured Credit Facilities.

Amortization expense related to deferred financing costs, net for years ended December 31, 2014 and 2013 were $13.3 million and $11.7 million, respectively.

Amortization expense related to original issue discounts for the years ended December 31, 2014 and 2013 were $3.6 million and $3.0 million, respectively.

At December 31, 2014 and 2013 there were no borrowings under the Revolving Credit Facility. At December 31, 2014 and 2013, letters of credit issued under the Revolving Credit Facility totaled $15.5 million and $20.7 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $384.5 million and $379.3 million at December 31, 2014 and 2013, respectively.

 

  (b) 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, Dutch B B.V. issued €250.0 million aggregate principal amount of 5.750% senior secured notes due 2021 (the “Euro Senior Notes”) and related guarantees thereof. Cash fees related to the issuance of the Senior Notes were $33.1 million, are recorded within deferred financing costs, net and are amortized as interest expense over the life of the Notes. At December 31, 2014 and 2013, the remaining unamortized balances were $25.3 million and $29.4 million, respectively. The expense related to the amortization of the deferred financing costs for the Successor year ended December 31, 2014 and 2013, were $4.1 million and $3.7 million, respectively.

The Senior Notes are unconditionally guaranteed on a senior basis by 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% payable semi-annually on February 1 and August 1. Cash fees related to the issuance of the Euro Senior Notes were $10.2 million, and are recorded within “Deferred financing costs, net” and are amortized into interest expense over the life of the Senior Notes. At December 31, 2014 and 2013, the remaining unamortized balances were $7.7 million and $9.0 million, respectively.

 

On or after February 1, 2016, 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

     100.000

2020 and thereafter

     100.000

Notwithstanding the foregoing, at any time and from time to time prior to February 1, 2016, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the Euro Senior Notes), at a redemption price of 105.750% plus accrued and unpaid interest, if any, to the redemption date.

In addition, we have the option to redeem up to 10% of the Euro Senior Notes during any 12-month period from issue date until February 1, 2016 at a redemption price of 103.0%, plus accrued and unpaid interest, if any, to the redemption date.

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% payable semi-annually on February 1 and August 1. Cash fees related to the issuance of the Dollar Senior Notes were $22.9 million, are recorded within “Deferred financing costs, net” and are amortized as interest expense over the life of the Senior Notes. At December 31, 2014 and 2013, the remaining unamortized balances were $17.6 million and $20.4 million, respectively.

On or after February 1, 2016, 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

     100.000

2020 and thereafter

     100.000

 

Notwithstanding the foregoing, at any time and from time to time prior to February 1, 2016, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the Dollar Senior Notes), at a redemption price of 107.375% plus accrued and unpaid interest, if any, to the redemption date.

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.

 

  (c) Short-term borrowings

On September 12, 2013, we entered into short-term borrowings in the amount of $27.8 million to partially fund the acquisition of a real estate investment property which closed in October 2013. The short-term borrowings associated with this acquisition were paid in full upon reaching maturity during the three months ended September 30, 2014. Other miscellaneous short-term borrowings had outstanding balances of $12.2 million and $0.4 million at December 31, 2014 and 2013, respectively.

 

  (d) Bridge financing commitment fees

On August 30, 2012, we signed a debt commitment letter, which was subsequently amended and restated, that included a bridge facility comprised of $1,100.0 million of unsecured U.S. bridge loans and a $300.0 million of secured bridge loans (the “Bridge Facility”), which was to be utilized to partially fund the Acquisition in the event that permanent financing was not obtained. Drawings under the Bridge Facility were subject to certain conditions. Upon the issuance of the Senior Notes and the entry into the Senior Secured Credit Facilities, the commitments under the Bridge Facility terminated. Commitment fees related to the Bridge Facility of $21.0 million and associated fees of $4.0 million were expensed upon the termination of the Bridge Facility during the year ended December 31, 2013.

 

  (e) Future repayments

Below is a schedule of required future repayments of all borrowings outstanding at December 31, 2014.

 

2015

$ 40.1   

2016

  27.9   

2017

  27.9   

2018

  28.6   

2019

  27.9   

Thereafter

  3,562.3   
  

 

 

 
$ 3,714.7   
  

 

 

 
Fair Value Accounting
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Fair Value Accounting
(16) FAIR VALUE ACCOUNTING

Fair value of financial instruments

Available for sale securities—The fair value of available for sale securities was $4.5 million at both March 31, 2015 and December 31, 2014. 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, 2015 were $813.8 million and $284.6 million, respectively. The fair values at December 31, 2014 were $795.0 million and $320.5 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 Loan and the New Euro Term Loan at March 31, 2015 were $2,149.0 million and $428.2 million, respectively. The fair values at December 31, 2014 were $2,100.5 million and $478.0 million, respectively. The estimated fair values of the Dollar Term Loan and the Euro Term Loan 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.

Fair Value Accounting
(23) FAIR VALUE ACCOUNTING

 

  (a) Assets measured at fair value on a nonrecurring basis

During the Successor years ended December 31, 2014 and December 31, 2013 we recorded impairment losses of $0.1 million and $3.2 million, respectively, associated with the abandonment of certain in process research and development projects acquired in the Acquisition. During the Predecessor period from January 1, 2013 through January 31, 2013 no assets were adjusted to their fair values on a nonrecurring basis. See Note 3 for further discussion of recording the fair values of the indefinite-lived in-process research and development intangible assets acquired in the Acquisition, and the subsequent testing of these assets for impairment.

 

  (b) Fair value of financial instruments

Available for sale securities—The fair values of available for sale securities at December 31, 2014 and 2013 were $4.5 million and $4.9 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 December 31, 2014 were $795.0 million and $320.5 million, respectively. The fair values at December 31, 2013 were $798.8 million and $362.1 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 Dollar Term Loan and the Euro Term Loan at December 31, 2014 were $2,100.5 million and $478.0 million, respectively. The fair values at December 31, 2013 were $2,297.1 million and $552.5 million, respectively. The estimated fair values of the Dollar Term Loan and the Euro Term Loan 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
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Derivative Financial Instruments
(17) 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, 2015      December 31, 2014  

Other assets:

     

Interest rate swaps

   $ 0.8       $ 5.9   
  

 

 

    

 

 

 

Total assets

$ 0.8    $ 5.9   
  

 

 

    

 

 

 

Other liabilities:

Interest rate swaps

$ 2.5    $ 1.5   
  

 

 

    

 

 

 

Total liabilities

$ 2.5    $ 1.5   
  

 

 

    

 

 

 

 

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, 2015      December 31, 2014  

Other assets:

     

Interest rate cap

   $ 0.1       $ 0.1   
  

 

 

    

 

 

 

Total assets

$ 0.1    $ 0.1   
  

 

 

    

 

 

 

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, 2015 and 2014 for these cash flow hedges.

 

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   

 

Derivatives in Cash Flow
Hedging

Relationships in three
months ended March 31,
2014:

   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

   $ (0.5    Interest expense, net    $ 1.6       Interest expense, net    $ 1.3   

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:

 

Derivatives Not Designated as Hedging

Instruments under ASC 815

  

Location of (Gain) Loss
Recognized in Income on

Derivatives

   Three Months Ended March 31,  
        2015         2014    

Foreign currency forward contract

   Other expense, net as a component of Exchange (gains) losses    $ (1.8   $ 1.2   

Interest rate cap

   Interest expense, net      —          1.8   
     

 

 

   

 

 

 
$ (1.8 $ 3.0   
     

 

 

   

 

 

 
Derivative Financial Instruments
(24) 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 Successor year ended December 31, 2013, we entered into a foreign currency contract to hedge the variability of the US dollar equivalent of the original borrowings under the Euro Term Loan and the proceeds from the issuance of the Euro Senior Notes. Changes in the fair value of this instrument were recorded in current period earnings and were presented in Other expense, net as a component of Exchange (gains) losses. Losses related to the settlement of this contract recognized during the Successor year ended December 31, 2013 totaled $19.4 million. Cash flows resulting from the settlement of the derivative instrument on February 1, 2013 are reported as investing activities.

 

During the Successor 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 consolidated and combined balance sheet:

 

     Successor  
     Year Ended December 31,  
       2014          2013    

Foreign currency contracts

   $ —         $ —     

Other assets:

     

Interest rate swaps

     5.9         10.5   
  

 

 

    

 

 

 

Total assets

$ 5.9    $ 10.5   
  

 

 

    

 

 

 

Other liabilities:

Interest rate swaps

$ 1.5    $ 1.2   
  

 

 

    

 

 

 

Total liabilities

$ 1.5    $ 1.2   
  

 

 

    

 

 

 

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 consolidated and combined balance sheet:

 

     Successor  
     Year Ended December 31,  
      2014        2013   

Foreign currency contracts

   $ —         $ —     

Other assets:

     

Interest rate cap

     0.1         3.4   
  

 

 

    

 

 

 

Total assets

$ 0.1    $ 3.4   
  

 

 

    

 

 

 

Other liabilities:

Foreign currency contracts

$ —      $ —     
  

 

 

    

 

 

 

Total liabilities

$ —      $ —     
  

 

 

    

 

 

 

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 table sets forth the locations and amounts recognized during the Successor years ended December 31, 2014 and 2013, respectively, for these cash flow hedges.

 

Derivatives in Cash

Flow Hedging

Relationships in 2014:

   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

   $ 4.6       Interest expense, net    $ 6.5       Interest expense, net    $ 0.3   

 

Derivatives in Cash

Flow Hedging

Relationships in 2013:

   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

   $ (5.0    Interest expense, net    $ 4.4       Interest expense, net    $ (4.3

Also during the Successor 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.

DPC, through DuPont, entered into contractual arrangements (derivatives) to reduce its exposure to foreign currency risk. The foreign currency derivative program was utilized for financial risk management and consisted of forward contracts. The derivative instruments were not designated as hedging instruments. Changes in the fair value of the derivative instruments were recorded in current period earnings and were presented in Other expense, net as a component of exchange (gains) losses.

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:

 

        Successor          Predecessor  

Derivatives Not Designated as
Hedging Instruments under

ASC 815

 

Location of (Gain) Loss

Recognized in Income on

Derivatives

  Year Ended
December 31,
2014
    Year Ended
December 31,
2013
         Period from
January 1, 2013
through
January 31,
2013
    Year Ended
December 31,
2012
 

Foreign currency forward contract

  Other expense, net as a component of Exchange (gains) losses   $ 1.4      $ 20.9          $ 2.0      $ 3.9   

Interest rate cap

  Interest expense, net     3.4        (0.3         —          —     
   

 

 

   

 

 

   

 

 

 

 

   

 

 

 
$ 4.8    $ 20.6      $ 2.0    $ 3.9   
   

 

 

   

 

 

       

 

 

   

 

 

 
Segments
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Segments
(18) SEGMENTS

The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information.

We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.

Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets within this segment are refinish and industrial.

Through our Transportation Coatings segment, we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets within this segment are light vehicle and commercial vehicle.

Our business serves four end-markets globally as follows:

 

     Three Months Ended March 31,  
         2015              2014      

Performance Coatings

     

Refinish

   $ 393.2       $ 435.2   

Industrial

     164.0         180.9   
  

 

 

    

 

 

 

Total Net sales Performance Coatings

  557.2      616.1   

Transportation Coatings

Light Vehicle

  333.2      339.6   

Commercial Vehicle

  98.8      91.7   
  

 

 

    

 

 

 

Total Net sales Transportation Coatings

  432.0      431.3   
  

 

 

    

 

 

 

Total Net sales

$ 989.2    $ 1,047.4   
  

 

 

    

 

 

 

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, 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   

 

     Performance
Coatings
     Transportation
Coatings
     Total  

For the Three Months Ended March 31, 2014

        

Net sales(1)

   $ 616.1       $ 431.3       $ 1,047.4   

Equity in earnings in unconsolidated affiliates

     0.3         0.3         0.6   

Adjusted EBITDA(2)

     124.5         62.2         186.7   

Investment in unconsolidated affiliates

     8.0         8.4         16.4   

 

(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 (loss) 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 (loss) before income taxes follows:

 

    Three Months Ended March 31,  
        2015             2014      

Income before income taxes

  $ 47.9      $ 8.3   

Interest expense, net

    50.0        59.0   

Depreciation and amortization

    72.6        81.1   
 

 

 

   

 

 

 

EBITDA

  170.5      148.4   

Financing costs(a)

  —        3.1   

Foreign exchange remeasurement losses(b)

  8.7      0.1   

Long-term employee benefit plan adjustments(c)

  0.2      2.3   

Termination benefits and other employee related costs(d)

  3.7      3.2   

Consulting and advisory fees(e)

  3.1      13.0   

Transition-related costs(f)

  —        13.9   

Secondary offering costs(g)

  1.4      —     

Other adjustments(h)

  (2.1   2.8   

Dividends in respect of noncontrolling interest(i)

  (3.5   (0.9

Management fee expense(j)

  —        0.8   
 

 

 

   

 

 

 

Adjusted EBITDA

$ 182.0    $ 186.7   
 

 

 

   

 

 

 

 

(a) In connection with an amendment to the Senior Secured Credit Facilities in February 2014, we recognized $3.1 million of costs during the three months ended March 31, 2014.
(b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies.
(c) Eliminates the non-service cost components of long-term employee benefit costs.
(d) Represents expenses primarily related to employee termination benefits, including our initiative to improve the overall cost structure within the European region, and other employee-related costs. Termination benefits include the costs associated with our headcount initiatives associated with cost saving opportunities that were related to our transition to a standalone entity and our Axalta Way cost savings initiatives in 2015.
(e) Represents fees paid to consultants, advisors, and other third-party professional organizations for professional services rendered in conjunction with the transition from DuPont to a standalone entity during 2014. Amounts incurred for the three months ended March 31, 2015 primarily relate to our Axalta Way cost savings initiatives.
(f) Represents charges associated with the transition from DuPont to a standalone entity, including branding and marketing, information technology related costs, and facility transition costs.
(g) Represents costs associated with the secondary offering of our common shares by Carlyle that closed in April 2015 (the “Secondary Offering”).
(h) Represents costs for certain unusual or non-operational (gains) and losses, including a $5.4 million gain recognized in 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest, stock-based compensation, equity investee dividends, indemnity losses associated with the Acquisition, and loss (gain) on sale and disposal of property, plant and equipment.
(i) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned.
(j) Pursuant to Axalta’s management agreement with Carlyle Investment for management and financial advisory services and oversight provided to Axalta and its subsidiaries, Axalta was required to pay an annual management fee of $3.0 million and out-of-pocket expenses. This agreement terminated upon completion of the IPO in November 2014.
Segments
(25) 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: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.

Through our Performance Coatings segment we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets within this segment are refinish and industrial.

Through our Transportation Coatings segment we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed.

Our business serves four end-markets globally as follows:

 

     Successor          Predecessor  
     Year Ended
December 31,
         January 1
through
January 31,
     Year Ended
December 31,
 
          2014                2013                   2013              2012      

Performance Coatings

              

Refinish

   $ 1,850.8       $ 1,670.0          $ 129.4       $ 1,759.3   

Industrial

     734.2         655.3            57.4         720.2   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total Net sales Performance Coatings

  2,585.0      2,325.3        186.8      2,479.5   

Transportation Coatings

 

Light Vehicle

  1,384.5      1,291.5        111.6      1,390.6   

Commercial Vehicle

  392.2      334.3        27.8      349.3   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total Net sales Transportation Coatings

  1,776.7      1,625.8        139.4      1,739.9   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total Net sales

$ 4,361.7    $ 3,951.1      $ 326.2    $ 4,219.4   
  

 

 

    

 

 

       

 

 

    

 

 

 

Segment information for the Predecessor period has been recast to conform to the Successor segment presentation.

Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment.

 

     Successor  
     Performance
Coatings
     Transportation
Coatings
     Total  

For the Year ended December 31, 2014

        

Net sales(1)

   $ 2,585.0       $ 1,776.7       $ 4,361.7   

Equity in earnings in unconsolidated affiliates

     (1.2      (0.2      (1.4

Adjusted EBITDA(2)

     547.6         292.9         840.5   

Investment in unconsolidated affiliates

     7.2         7.1         14.3   

 

     Successor  
     Performance
Coatings
     Transportation
Coatings
     Total  

For the Year ended December 31, 2013

        

Net sales(1)

   $ 2,325.3       $ 1,625.8       $ 3,951.1   

Equity in earnings in unconsolidated affiliates

     1.8         0.3         2.1   

Adjusted EBITDA(2)

     500.2         198.8         699.0   

Investment in unconsolidated affiliates

     7.7         8.1         15.8   

 

     Predecessor  
     Performance
Coatings
     Transportation
Coatings
         Total      

January 1 through January 31, 2013

        

Net sales(1)

   $ 186.8       $ 139.4       $ 326.2   

Equity in earnings (losses) in unconsolidated affiliates

     —           (0.3      (0.3

Adjusted EBITDA(2)

     15.0         17.7         32.7   

Investment in unconsolidated affiliates

     2.0         6.7         8.7   

 

     Predecessor  
     Performance
Coatings
     Transportation
Coatings
     Total  

For the Year ended December 31, 2012

        

Net sales(1)

   $ 2,479.5       $ 1,739.9       $ 4,219.4   

Equity in earnings in unconsolidated affiliates

     —           0.6         0.6   

Adjusted EBITDA(2)

     426.0         151.6         577.6   

Investment in unconsolidated affiliates

     0.8         7.1         7.9   

 

(1) The Company has no intercompany sales.
(2) The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income (loss) 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 (loss) before income taxes follows:

 

     Successor          Predecessor  
     Year Ended
December 31,
    August 24
through
December 31,
         January 1
through
January 31,
    Year ended
December 31,
 
         2014             2013         2012          2013     2012  

Adjusted EBITDA

   $ 840.5      $ 699.0      $ —            $ 32.7      $ 577.6   
 

Inventory step-up(a)

     —          (103.7     —              —          —     

Merger and acquisition related costs(b)

     —          (28.1     (29.0         —          —     

Financing fees(c)

     (6.1     (25.0     —              —          —     

Foreign exchange remeasurement losses(d)

     (81.2     (48.9     —              (4.5     (17.7

Long-term employee benefit plan adjustments(e)

     0.6        (9.5     —              (2.3     (36.9

Termination benefits and other employee related costs(f)

     (18.4     (147.5     —              (0.3     (8.6

Consulting and advisory fees(g)

     (36.3     (54.7     —              —          —     

Transition-related costs(h)

     (101.8     (29.3     —              —          —     

IPO-related costs(i)

     (22.3     —          —              —          —     

Other adjustments(j)

     (10.8     (2.3     —              (0.1     (12.6

Dividends in respect of noncontrolling interest(k)

     2.2        5.2        —              —          1.9   

Management fee expense(l)

     (3.2     (3.1     —              —          —     
  

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

EBITDA

  563.2      252.1      (29.0     25.5      503.7   

Interest expense, net

  217.7      215.1      —          —        —     

Depreciation and amortization

  308.7      300.7      —          9.9      110.7   
  

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Income before income taxes

$ 36.8    $ (263.7 $ (29.0   $ 15.6    $ 393.0   
  

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

 

(a) During the Successor year ended December 31, 2013, we recorded a non-cash fair value adjustment associated with our acquisition accounting for inventories. These amounts increased cost of goods sold by $103.7 million.
(b) In connection with the Acquisition, we incurred $28.1 million and $29.0 million of merger and acquisition costs during the Successor years ended December 31, 2013 and December 31, 2012, respectively. These costs consisted primarily of investment banking, legal and other professional advisory services costs.
(c) On August 30, 2012, we signed a debt commitment letter, which included the Bridge Facility. Upon the issuance of the Senior Notes and the entry into the Senior Secured Credit Facilities, the commitments under the Bridge Facility terminated. Commitment fees related to the Bridge Facility of $21.0 million and associated fees of $4.0 million were expensed upon the payment and termination of the Bridge Facility. In connection with the amendment to the Senior Secured Credit Facilities in February 2014, we recognized $3.1 million of costs during the Successor year ended December 31, 2014. In addition to the credit facility amendment, we also incurred a $3.0 million loss on extinguishment of debt recognized during the Successor year ended December 31, 2014, which resulted directly from the pro-rata write off of unamortized deferred financing costs and original issue discounts associated with the pay-down of $100.0 million of principal on the New Dollar Term Loan (discussed further at Note 22 to the consolidated and combined financial statements.
(d) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, including a $19.4 million loss related to the acquisition date settlement of a foreign currency contract used to hedge the variability of Euro-based financing.
(e) For the Successor years ended December 31, 2014 and 2013, eliminates the non-service cost components of employee benefit costs. Additionally, we deducted a pension curtailment gain of $7.3 million recorded during the Successor year ended December 31, 2014. For the Predecessor period January 1, 2013 through January 31, 2013 and the Predecessor year ended December 31, 2012 eliminates (1) all U.S. pension and other long-term employee benefit costs that were not assumed as part of the Acquisition and (2) the non-service cost component of the pension and other long-term employee benefit costs for the foreign pension plans that were assumed as part of the Acquisition.
(f) Represents expenses primarily related to employee termination benefits, including our initiative to improve the overall cost structure within the European region, and other employee-related costs. Termination benefits include the costs associated with our headcount initiatives for establishment of new roles and elimination of old roles and other costs associated with cost saving opportunities that were related to our transition to a standalone entity.
(g) Represents fees paid to consultants, advisors, and other third-party professional organizations for professional services rendered in conjunction with the transition from DuPont to a standalone entity.
(h) Represents charges associated with the transition from DuPont to a standalone entity, including branding and marketing, information technology related costs, and facility transition costs.
(i) Represents costs associated with the IPO, including a $13.4 million pre-tax charge associated with the termination of the management agreement with Carlyle Investment Management, L.L.C., an affiliate of Carlyle, upon the completion of the IPO.
(j) Represent costs for certain unusual or non-operational losses and the non-cash impact of natural gas and currency hedge losses allocated to DPC by DuPont, stock-based compensation, asset impairments, equity investee dividends, indemnity income associated with the Transaction, and loss (gain) on sale and disposal of property, plant and equipment.
(k) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned.
(l) Pursuant to Axalta’s management agreement with Carlyle Investment Management, L.L.C., for management and financial advisory services and oversight provided to Axalta and its subsidiaries, Axalta was required to pay an annual management fee of $3.0 million and out-of-pocket expenses.

Segment information for the Predecessor periods has been recast to conform to the Successor segment presentation.

Geographic Area Information:

The information within the following tables provides disaggregated information related to our net sales and long-lived assets.

 

Net sales by region were as follows:

 

     Successor    

 

  Predecessor  
     Year Ended
December 31,
     Year Ended
December 31,
     Period from
August 24
through
December 31,
         Period from
January 1
through
January 31,
     Year Ended
December 31,
 
     2014      2013      2012          2013      2012  

North America

   $ 1,307.8       $ 1,165.4       $ —            $ 81.6       $ 1,238.6   

EMEA

     1,672.0         1,540.4         —              141.0         1,675.4   

Asia Pacific

     715.0         593.7         —              51.7         595.0   

Latin America

     666.9         651.6         —              51.9         710.4   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

Total(a)

$ 4,361.7    $ 3,951.1    $ —        $ 326.2    $ 4,219.4   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

Net long-lived assets by region were as follows:

 

     Successor  
     December 31,
2014
     December 31,
2013
 

North America

   $ 481.4       $ 483.8   

EMEA

     542.0         623.5   

Asia Pacific

     234.3         218.1   

Latin America

     256.4         297.2   
  

 

 

    

 

 

 

Total(b)

$ 1,514.1    $ 1,622.6   
  

 

 

    

 

 

 

 

(a) Net Sales are attributed to countries based on location of the customer. Sales to external customers in China represented approximately 11% and 10% of the total for the Successor years ended December 31, 2014 and 2013, respectively, as well as 11% for the Predecessor period ended January 31, 2013 and 8% in the Predecessor year ended December 31, 2012. Sales to external customers in Germany represented approximately 10% and 10% of the total for the Successor years ended December 31, 2014 and 2013, respectively, as well as 11% for the Predecessor period ended January 31, 2013 and 16% in the Predecessor year ended December 31, 2012. Canada, which is included in the North America region, represents approximately 3% of total sales in all periods.
(b) Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $302.8 million and $348.1 million in the years ended December 31, 2014 and 2013, respectively. China long-lived assets amounted to $189.4 million and $167.5 million in the years ended December 31, 2014 and 2013, respectively.
Shareholders' Equity
Shareholders' Equity
(19) SHAREHOLDERS’ EQUITY

The following tables present the change in total shareholders’ equity for the three months ended March 31, 2015 and 2014, respectively.

 

     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 interests of acquired subsidiaries

     —           4.3         4.3   

Dividends declared to noncontrolling interests

     —           (3.5      (3.5
  

 

 

    

 

 

    

 

 

 

Balance March 31, 2015

$ 978.9    $ 69.3    $ 1,048.2   
  

 

 

    

 

 

    

 

 

 

 

     Total Axalta      Noncontrolling
Interests
     Total  

Balance January 1, 2014

   $ 1,142.9       $ 68.9       $ 1,211.8   

Net income (loss)

     (4.3      0.6         (3.7

Other comprehensive (loss), net of tax

     (3.0      —           (3.0

Recognition of stock-based compensation

     1.8         —           1.8   

Dividends declared to noncontrolling interests

     —           (0.9      (0.9
  

 

 

    

 

 

    

 

 

 

Balance March 31, 2014

$ 1,137.4    $ 68.6    $ 1,206.0   
  

 

 

    

 

 

    

 

 

 
Accumulated Other Comprehensive Income
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income
(20) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

 

     Unrealized
Currency
Translation
Adjustments
    Pension and
Other
Long-term
Employee
Benefit
Adjustments
    Unrealized
Gain
(Loss) on

Securities
    Unrealized
Gain
(Losses) on

Derivatives
    Accumulated
Other
Comprehensive
Income (loss)
 

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 pension and other long-term employee benefits for the three months ended March 31, 2015 was $0.8 million. The cumulative income tax benefit related to the adjustments for pension and other 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.

 

     Unrealized
Currency
Translation
Adjustments
    Pension and
Other
Long-term
Employee
Benefit
Adjustments
    Unrealized
Loss on
Securities
    Unrealized
Gain
(Loss) on

Derivatives
    Accumulated
Other
Comprehensive
Income
 

December 31, 2013

   $ 24.3      $ 7.5      $ (0.9   $ 3.1      $ 34.0   

Current year deferrals to AOCI

     (7.5     4.5        (0.2     1.9        (1.3

Reclassifications from AOCI to Net income

     —          (0.1     —          (1.6     (1.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change

  (7.5   4.4      (0.2   0.3      (3.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

March 31, 2014

$ 16.8    $ 11.9    $ (1.1 $ 3.4    $ 31.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Included within reclassifications from AOCI to Net income for the three months ended March 31, 2014 was $5.6 million of curtailment gains related to an amendment to one of our pension plans.

The income tax expense related to the changes in pension and other long-term employee benefits for the three months ended March 31, 2014 was $1.1 million. The cumulative income tax expense related to the adjustment for pension and other long-term employee benefits at March 31, 2014 was $4.6 million. The income tax expense related to the change in the unrealized gain on derivatives for the three months ended March 31, 2014 was $0.2 million. The cumulative income tax expense related to the adjustment for unrealized gain on derivatives at March 31, 2014 was $2.1 million.

Accumulated Other Comprehensive Income
(26) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

 

     Unrealized
Currency
Translation
Adjustments
    Pension and
Other
Long-term
Employee
Benefit
Adjustments
    Unrealized
Gain
(Loss) on

Securities
    Unrealized
Gain
(Losses) on

Derivatives
    Accumulated
Other
Comprehensive
Income
 

Successor Balance, December 31, 2013

   $ 24.3      $ 7.5      $ (0.9   $ 3.1      $ 34.0   

Current year deferrals to AOCI

     (96.4     (29.7     0.7        3.6        (121.8

Reclassifications from AOCI to Net income

     —          (9.0     —          (6.5     (15.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change

  (96.4   (38.7   0.7      (2.9   (137.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Successor Balance, December 31, 2014

$ (72.1 $ (31.2 $ (0.2 $ 0.2    $ (103.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Included within reclassifications from AOCI to Net income for the Successor year ended December 31, 2014 was $7.3 million of curtailment gains related to an amendment to one of our pension plans.

The income tax related to the changes in pension and other long-term employee benefits for the year ended December 31, 2014 was $16.9 million. The cumulative income tax impact related to the adjustments for pension and other long-term employee benefits at December 31, 2014 was a benefit of $13.4 million compared to the cumulative income tax expense at December 31, 2013 of $3.5 million. The income tax related to the change in the unrealized gain on derivatives for the year ended December 31, 2014 was $1.7 million. The cumulative income tax expense related to the adjustments for unrealized gain on derivatives at December 31, 2014 and 2013 were $0.2 million and $1.9 million, respectively.

 

     Unrealized
Currency
Translation
Adjustments
     Pension and
Other
Long-term
Employee
Benefit
Adjustments
     Unrealized
Loss on
Securities
    Unrealized
Gain
(Loss) on

Derivatives
    Accumulated
Other
Comprehensive
Income
 

Successor Balance, December 31, 2012

   $ —         $ —         $ —        $ —        $ —     

Current year deferrals to AOCI

     24.3         7.5         (0.9     7.5        38.4   

Reclassifications from AOCI to Net income

     —           —           —          (4.4     (4.4
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net Change

  24.3      7.5      (0.9   3.1      34.0   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Successor Balance, December 31, 2013

$ 24.3    $ 7.5    $ (0.9 $ 3.1    $ 34.0   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

The income tax related to the changes in pension and other long-term employee benefits for the Successor year ended December 31, 2013 was $3.5 million. The cumulative income tax expense related to the adjustment for pension and other long-term employee benefits at December 31, 2013 was $3.5 million. The income tax related to the change in the unrealized gain on derivatives for the Successor year ended December 31, 2013 was $1.9 million. The cumulative income tax expense related to the adjustment for unrealized gain on derivatives at December 31, 2013 was $1.9 million.

 

     Unrealized
Currency
Translation
Adjustments
     Pension and
Other
Long-term
Employee
Benefit
Adjustments
    Unrealized
loss on
securities
     Unrealized
Gain
(Loss) on

Derivatives
     Accumulated
Other
Comprehensive
Income
 

Predecessor Balance, December 31, 2012

   $ —         $ (142.3   $ 1.4       $ —         $ (140.9

Current year deferrals to AOCI

     —           0.7        0.2         —           0.9   

Reclassifications from AOCI to Net income

     —           —          —           —           —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net Change

  —        0.7      0.2      —        0.9   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Predecessor Balance, January 31, 2013

$ —      $ (141.6 $ 1.6    $ —      $ (140.0
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

The income tax related to the changes in pension and other long-term employee benefits for the Predecessor one month ended January 31, 2013 was $0.4 million. The cumulative income tax benefit related to the adjustment for pension and other long-term employee benefits at January 31, 2013 was $76.3 million. The income tax related to the change in the unrealized gain on derivatives for the Predecessor one month ended January 31, 2013 was $0.0 million. The cumulative income tax expense related to the adjustment for unrealized gain on derivatives at January 31, 2013 was $0.0 million. The income tax related to the change in the unrealized loss on securities for the Predecessor one month ended January 31, 2013 was $0.0 million. The cumulative income tax expense related to the adjustment for unrealized loss on securities at January 31, 2013 was $0.9 million.

Subsequent Events
Subsequent Events
(21) SUBSEQUENT EVENTS

On April 8, 2015, we completed a Secondary Offering in which Carlyle sold an aggregate of 40,000,000 common shares at a price of $28.00 per share. The underwriters also exercised their over-allotment option and purchased an additional 6,000,000 common shares. We did not receive any proceeds from the sale of common shares in the Secondary Offering.

On April 8, 2015, Carlyle sold 20,000,000 common shares in a private placement offering to an affiliate of Berkshire Hathaway Inc. for $28.00 per share. We did not receive any proceeds from the sale of common shares in the private placement offering.

 

As a result of the transactions above, Carlyle’s interest in Axalta decreased below 50% and triggered a liquidity event, as defined in the Axalta Coating Systems Bermuda Co., Ltd. 2013 Equity Incentive Plan (the “2013 Plan”). Upon the liquidity event, all issued and outstanding stock options issued under the 2013 Plan became fully vested. As a result of these shares becoming fully vested, the remaining unrecognized stock-based compensation expense of $8.0 million will be recognized for the three months ended June 30, 2015.

General and Description of the Business
General and Description of the Business
(1) GENERAL AND DESCRIPTION OF THE BUSINESS

Axalta Coating Systems Ltd. (“Axalta,” the “Company,” “we,” “our” and “us”), a Bermuda exempted company limited by shares formed at the direction of The Carlyle Group L.P. (“Carlyle”), was incorporated on August 24, 2012 for the purpose of consummating the acquisition of DuPont Performance Coatings (“DPC”), a business formerly owned by E. I. du Pont de Nemours and Company (“DuPont”), including certain assets of DPC and all of the capital stock and other equity interests of certain entities engaged in the DPC business (the “Acquisition”). Axalta, through its wholly-owned indirect subsidiaries, acquired DPC on February 1, 2013.

The Acquisition

Axalta is a holding company with no business operations or assets other than cash, cash equivalents, certain indemnity receivables from DuPont and 100% of the ownership interest of Axalta Coating Systems Dutch Co. Top Coöperatief U.A., which itself is a holding company with no operations or assets other than 100% of the capital stock of Axalta Coating Systems Dutch Holdings A B.V. (“Dutch A B.V.”), which itself is a holding company with no operations or assets other than 100% of the capital stock of Axalta Coating Systems Dutch Holdings B B.V. (“Dutch B B.V.”). Dutch B B.V., together with its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings, Inc. (“Axalta US Holdings”), are co-borrowers under the Senior Secured Credit Facilities and co-issuers of the Senior Notes (each as defined below). Our global operations are conducted by indirect wholly-owned subsidiaries and indirect majority-owned subsidiaries.

The purchase price for the Acquisition was funded by (i) an equity contribution of $1,350.0 million into the Company by affiliates of Carlyle (the “Equity Contribution”), (ii) proceeds from borrowings under senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of a $2,300.0 million Dollar Term Loan facility and a €400.0 million Euro Term Loan facility both of which are due February 1, 2020 and (iii) proceeds from the issuance of $750.0 million aggregate principal amount of 7.375% senior unsecured notes due 2021 and the issuance of €250.0 million aggregate principal amount of 5.750% senior secured notes due 2021 (collectively the “Senior Notes”). The Senior Secured Credit Facilities and the Senior Notes are more fully described in Note 22.

Initial Public Offering

On November 14, 2014, the Company completed its initial public offering (“IPO”). In the IPO, certain of the Company’s shareholders sold an aggregate of 50,000,000 common shares at a public offering price of $19.50 per share. The underwriters also exercised their over-allotment option and purchased an additional 7,500,000 common shares. The Company did not receive any proceeds from the sale of common shares in the IPO.

The Business

Axalta is a leading global manufacturer, marketer and distributor of innovative high performance coatings products primarily serving the transportation industry. Products are offered in four key end-markets including the refinish automotive aftermarket, industrial, light vehicle or automotive original equipment manufacturers (“OEM”) market, and commercial vehicle market. These products include high performance liquid and powder coatings for motor vehicles OEMs, the motor vehicle aftermarket, and general industrial applications, such as coatings for heavy equipment, pipes, appliances and electrical insulation. Aftermarket coatings products are marketed using the Standox, Spies Hecker, Cromax and Nason brand names. Standox, Spies Hecker and Cromax are focused on the high-end motor vehicle aftermarkets, while Nason is primarily focused on economy coating applications.

 

Axalta is globally operated with manufacturing facilities, sales centers, administrative offices and warehouses located throughout the world. Axalta’s operations are primarily located in the United States, Canada, Brazil, Mexico, Austria, Belgium, Germany, France, the United Kingdom and China.

Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
(3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements of Axalta and its subsidiaries and the combined financial statements of DPC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial statements have been included.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the closing date of the Acquisition and the date of the financial statements and the reported amounts of sales and expenses during the period. The estimates and assumptions include, but are not limited to, receivable and inventory valuations, fixed asset valuations, valuations of goodwill and identifiable intangible assets, including analysis of impairment, valuations of long-term employee benefit obligations, income taxes, environmental matters, litigation, stock-based compensation, restructuring, and allocations of costs. Our estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. Actual results could differ materially from those estimates.

Accounting for Business Combinations

We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets, including separately identifiable intangible assets and assumed liabilities at their acquisition date fair values. The method records any excess purchase price over the fair value of acquired net assets as goodwill.

 

The determination of the fair value of assets acquired, liabilities assumed, and noncontrolling interests involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the closing date of the Acquisition. When necessary, we consult with external advisors to help determine fair value. For non-observable market values, we determine fair value using acceptable valuation principles (e.g., multiple excess earnings, relief from royalty and cost methods).

We included the results of operations from the acquisition date in the financial statements for all businesses acquired.

Principles of Consolidation and Combination

The consolidated financial statements of the Successor (“the Successor statements”) include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which Axalta, directly or indirectly, owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, Axalta’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statement of operations and our share of these companies’ stockholders’ equity is included in the accompanying consolidated balance sheet.

The combined financial statements for the Predecessor (“the Predecessor statements”) include the combined assets, liabilities, revenues, and expenses of DPC.

We eliminated all intercompany accounts and transactions in the preparation of the accompanying consolidated and combined financial statements.

On September 4, 2012, the three partners of the DPC majority-owned DuPont Powder Coatings Saudi Company Ltd. (“DPC Saudi”), a non-US joint venture, signed a new shareholder resolution agreement requiring all partners to unanimously agree to all financial decisions and payments of the business. As a result, DPC concluded that consolidating DPC Saudi was no longer appropriate due to a lack of financial control in the operations of the business. Consequently, DPC deconsolidated the joint venture, and accounted for it under the equity method of accounting in the Predecessor statements. This joint venture investment in DPC Saudi was not an asset acquired from DuPont in the Acquisition. The deconsolidation of DPC Saudi resulted in a loss of $1.0 million for the year ended December 31, 2012, which was recorded in Selling, general and administrative expenses in the combined statement of operations.

Revenue Recognition

We recognize revenue after completing the earnings process. We recognize revenue for product sales when we ship products to the customer in accordance with the terms of the agreement, when there is persuasive evidence of the arrangement, title and risk of loss have been transferred, collectability is reasonably assured and pricing is fixed or determinable.

For a majority of our product sales, title transfers at the shipping point and delivery is considered complete. For certain OEM customers, revenue is recognized at the time the customer applies our coatings to its vehicles, as this represents the point in time that risk of loss has been transferred and delivery is considered complete.

We accrue for sales returns and other allowances based on our historical experience.

 

We incur up-front costs in order to obtain contracts with certain customers. During the Successor periods, we capitalized these up-front costs as a component of Other assets. During the Predecessor periods, we capitalized costs as a component of Identifiable intangibles, net. We amortize the related amounts over the estimated life of the contract as a reduction of net sales.

We include the amounts billed to customers for shipping and handling fees in net sales and costs incurred for the delivery of goods as cost of goods sold in the statement of operations.

Recognition for licensing and royalty income occurs in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured.

Other Revenue

Other revenue includes various elements of income resulting from the normal operation of our business. Other revenue includes, but is not limited to, income for services provided to customers and royalty income.

Cash and Cash Equivalents

Cash equivalents represent highly liquid investments with maturities of three months or less from time of purchase. They are carried at cost plus accrued interest, which approximates fair value because of the short-term maturity of these instruments. Cash balances may exceed government insured limits in certain jurisdictions.

Fair Value Measurements

GAAP defines a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The following valuation techniques are used to measure fair value for assets and liabilities:

Level 1—Quoted market prices in active markets for identical assets or liabilities;

Level 2—Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and

Level 3—Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability.

Derivatives and Hedging

The Company from time to time utilizes derivatives to manage exposures to currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or Accumulated other comprehensive income (“AOCI”), depending on the use of the derivative and whether it qualifies for hedge accounting treatment and is designated as such.

Gains and losses on derivatives that qualify and are designated as cash flow hedging instruments are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income.

 

Gains and losses on derivatives qualifying and designated as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income.

Cash flows from derivatives are recognized in the consolidated and combined statements of cash flows in a manner consistent with the underlying transactions.

Receivables and Allowance for Doubtful Accounts

Receivables are recognized net of an allowance for doubtful accounts receivable. The allowance for doubtful accounts receivable reflects the best estimate of losses inherent in the accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written down or off when a portion or all of such account receivable is determined to be uncollectible.

Inventories

Inventories of the Successor are valued at the lower of cost or market with cost being determined on the weighted average cost method. Elements of cost in inventories include:

 

    raw materials,

 

    direct labor, and

 

    manufacturing overhead

Stores and supplies are valued at the lower of cost or market; cost is generally determined by the weighted average cost method. Inventories deemed to have costs greater than their respective market values are reduced to net realizable value with a loss recorded in income in the period recognized.

Inventories of the Predecessor were valued at the lower of cost or market with cost determined by the last-in, first-out (“LIFO”) method.

Property, Plant and Equipment

Successor periods

Property, plant and equipment of the Successor acquired in the Acquisition were recorded at fair value as of the acquisition date and are depreciated using the straight-line method. Subsequent additions to property, plant and equipment, including the fair value of any asset retirement obligations upon initial recognition of the liability, are recorded at cost and are depreciated using the straight-line method.

Software included in property, plant and equipment represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance and training costs are expensed in the period in which they are incurred.

Property, plant and equipment acquired in the Acquisition are depreciated over their estimated remaining useful lives. The weighted average estimated remaining useful lives of property, plant and equipment acquired in connection with the Acquisition was approximately 11 years. Subsequent additions are either amortized or depreciated on a straight-line basis over a range of estimated useful lives. See Note 18 for a range of estimated useful lives used for each property, plant and equipment class.

 

Predecessor periods

Property, plant and equipment of the Predecessor were carried at cost and were depreciated using the straight-line method. Property, plant and equipment placed in service prior to 1995 were depreciated using the sum-of-the-years’ digits method or other substantially similar methods. Substantially all Predecessor buildings and equipment were depreciated over useful lives ranging from 15 to 25 years.

Goodwill and Other Identifiable Intangible Assets

Goodwill represents the excess of purchase price over the fair values of underlying net assets acquired in an acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis as of October 1; however, these tests are performed more frequently if events or changes in circumstances indicate that the asset may be impaired. The fair value methodology is based on prices of similar assets or other valuation methodologies including discounted cash flow techniques.

When testing goodwill and indefinite-lived intangible assets for impairment, we first have an option to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that an impairment exists. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. In the event the qualitative assessment indicates that an impairment is more likely than not, we would be required to perform a quantitative impairment test, otherwise no further analysis is required.

Under the quantitative goodwill impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, then individual assets (including identifiable intangible assets) and liabilities of the reporting unit are estimated at fair value. The excess of the estimated fair value of the reporting unit over the estimated fair value of its net assets would establish the implied value of goodwill. The excess of the recorded amount of goodwill over the implied value is then charged to earnings as an impairment loss.

Definite-lived intangible assets, such as technology, trademarks, customer relationships and non-compete agreements are amortized over their estimated useful lives, generally for periods ranging from four to 20 years. The reasonableness of the useful lives of these assets is regularly evaluated. Once these assets are fully amortized, they are removed from the balance sheet. We evaluate these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable.

Impairment of Long-Lived Assets

The carrying value of long-lived assets to be held and used is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the asset are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The fair value methodology used is an estimate of fair market value and is based on prices of similar assets or other valuation methodologies including present value techniques. Long-lived assets to be disposed of other than by sale are classified as held for use until their disposal. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived assets classified as held for sale.

 

Research and Development

Research and development costs incurred in the normal course of business consist primarily of employee-related costs and are expensed as incurred. In process research and development projects acquired in a business combination are recorded as intangible assets at their fair value as of the acquisition date. Subsequent costs related to acquired in process research and development projects are expensed as incurred. Research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. These indefinite-lived intangible assets are tested for impairment consistent with the impairment testing performed on other indefinite-lived intangible assets discussed above. Upon completion of the research and development process, the carrying value of acquired in process research and development projects is reclassified as a finite-lived asset and is amortized over its useful life.

Environmental Liabilities and Expenditures

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued environmental liabilities are not discounted. Claims for recovery from third parties, if any, are reflected separately as an asset. We record recoveries at the earlier of when the gain is probable or realized. For the periods ending December 31, 2014, 2013 and 2012, and January 1, 2013 through January 31, 2013, we have not recognized any assets or income associated with recoveries from third parties.

Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized and depreciated.

Litigation

We accrue for liabilities related to litigation matters when available information indicates that the liability is probable and the amount can be reasonably estimated. Legal costs such as outside counsel fees and expenses are charged to expense in the period incurred.

Income Taxes

Successor periods

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for operating losses and tax credit carry forwards. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income in the period that includes the enactment date.

Where we do not intend to indefinitely reinvest earnings of our foreign subsidiaries, we provide for income taxes and foreign withholding taxes, where applicable, on undistributed earnings. We do not provide for income taxes on undistributed earnings of our foreign subsidiaries that are intended to be indefinitely reinvested.

 

We recognize the benefit of an income tax position only if it is “more likely than not” that the tax position will be sustained. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized. Additionally, we recognize interest and penalties accrued related to unrecognized tax benefits as a component of provision for income taxes. The current portion of unrecognized tax benefits is included in “Income taxes payable” and the long-term portion is included in the long-term income tax payable in the consolidated balance sheets.

Predecessor periods

For all Predecessor periods presented, although DPC was included in the consolidated income tax return of DuPont, DPC’s income taxes are computed and reported under the “separate return method.” Use of the separate return method may result in differences when the sum of the amounts allocated to standalone tax provisions are compared with amounts presented in combined financial statements. In that event, related deferred tax assets and liabilities could be significantly different from those presented herein for the Predecessor periods. Certain tax attributes, e.g., net operating loss carryforwards, which were reflected in the DuPont consolidated financial statements may or may not exist at the standalone DPC level.

Foreign Currency Translation

Successor periods

The reporting currency is the U.S. dollar. In most cases, our non-U.S. based subsidiaries use their local currency as the functional currency for their respective business operations. Assets and liabilities of these operations are translated into U.S. dollars at end-of-period exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Resulting cumulative translation adjustments are recorded as a component of shareholders’ equity in the consolidated balance sheet in Accumulated other comprehensive income (loss).

Gains and losses from transactions denominated in currencies other than the functional currencies are included in the consolidated statement of operations in Other expense, net.

Predecessor periods

The reporting currency is the U.S. dollar. For the Predecessor period, DuPont management determined that the U.S. dollar was the functional currency of DPC’s legal entities and this functional currency was appropriate for the economic environment in which DPC operated during the period covered by the Predecessor combined financial statements. For these legal entities, foreign currency denominated asset and liability amounts were remeasured into U.S. dollars at the end-of-period exchange rates. Nonmonetary assets, such as inventories, prepaid expenses, fixed assets and intangible assets were remeasured into U.S. dollars at historical exchange rates. Foreign currency denominated income and expense elements were remeasured into U.S. dollars at average exchange rates in effect during the year, except for expenses related to nonmonetary assets, which were remeasured at historical exchange rates.

Employee Benefits

Successor periods

In connection with the Acquisition, we assumed certain defined benefit plan obligations and related plan assets for current employees of non-U.S. subsidiaries and certain defined benefit plan obligations and plan assets of former employees of subsidiaries. All defined pension plan obligations for current and former employees in the United States were retained by DuPont.

 

Defined benefit plans specify an amount of pension benefit that an employee will receive upon retirement, usually dependent on factors such as age, years of service and compensation. The net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of the future benefits that employees have earned in return for their service in the current and prior periods. These benefits are then discounted to determine the present value of the obligations and are then adjusted for the impact of any unamortized prior service costs. As required by ASC 805, Business Combinations, all unamortized prior service costs and actuarial gains (losses) existing at the closing date of the Acquisition were eliminated in the determination of the fair value of the pension funded status at acquisition. The net obligation is then determined with reference to the fair value of the plan assets (if any). The discount rate used is the yield on bonds that are denominated in the currency in which the benefits will be paid and that have maturity dates approximating the terms of the obligations. The calculations are performed by qualified actuaries using the projected unit credit method.

Predecessor periods

Certain of DPC’s employees participated in defined benefit pension and other long-term employee benefit plans (the Plans) accounted for in accordance with ASC 715, Compensation—Retirement Benefits. Certain DPC employees were previously covered under DuPont and DuPont subsidiaries’ sponsored plans which were accounted for in accordance with accounting guidance in ASC 715. The majority of pension and other long-term employee expenses during the Predecessor periods were specifically identified by employee. In addition, a portion of expenses was allocated in shared entities and reported within costs of goods sold, selling, general and administrative and research and development expenses in the combined statements of operations. For the U.S. pension plan and other long-term employee benefit plans (the U.S. plans), DuPont considered DPC employees to be part of a multiemployer plan of DuPont. The expense related to the current and former employees of DPC is included in the Predecessor combined financial statements. Non-U.S. pensions and other long-term employee benefit plans (the non-U.S. plans) were accounted for as single employer plans where DPC recorded assets, liabilities and expenses related to the current DPC workforce.

Stock-Based Compensation

Successor periods

Our stock-based compensation for the Successor period, comprised of Axalta stock options, is measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a graded-vesting attribution basis over the requisite service period.

Predecessor periods

DuPont maintained certain stock compensation plans for the benefit of certain of its officers, directors and employees, including DPC’s employees in the Predecessor periods. DPC accounted for all share-based payments to employees, including grants of stock options, based upon their fair values.

For additional information on our stock-based compensation plan, see Note 11.

Earnings per Common Share

Basic earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities; anti-dilutive securities are excluded from the calculation. These potentially dilutive securities are calculated under the treasury stock method and consist of stock options.

Acquisitions and Divestitures
Acquisitions and Divestitures
(5) ACQUISITIONS AND DIVESTITURES

Acquisition of DuPont Performance Coatings

On August 30, 2012, we entered into a purchase agreement with DuPont whereby, Axalta acquired from DuPont and its affiliates certain assets of DPC and all of the capital stock and other equity interests of certain entities engaged in the DPC business (the “Acquisition Agreement”) pursuant to which we acquired the assets and legal entities of DPC from DuPont for a purchase price of $4,925.9 million plus or minus a working capital adjustment and pension adjustment. Axalta and DuPont finalized the working capital and pension adjustments to the purchase price which resulted in a reduction to the purchase price of $18.6 million to $4,907.3 million.

We accounted for the Acquisition as a business combination in accordance with ASC 805, Business Combinations, using the acquisition method of accounting. At December 31, 2013, the amounts presented for the Acquisition were finalized.

The following table summarizes the fair values of the net assets acquired as of the February 1, 2013 Acquisition date adjusted for measurement period adjustments:

 

     February 1, 2013
(As Initially
Reported)
     Measurement
Period
Adjustments
     February 1, 2013
(As Adjusted)
 

Cash and cash equivalents

   $ 79.7       $ —         $ 79.7   

Accounts and notes receivable—trade

     855.8         22.7         878.5   

Inventories

     673.0         3.0         676.0   

Prepaid expenses and other

     8.2         (1.3      6.9   

Property, plant and equipment

     1,707.7         (1.8      1,705.9   

Identifiable intangibles

     1,539.3         (19.0      1,520.3   

Other assets—noncurrent

     98.8         19.1         117.9   

Accounts payable

     (409.1      (6.9      (416.0

Other accrued liabilities

     (232.0      7.5         (224.5

Other liabilities

     (331.1      (35.3      (366.4

Deferred income taxes

     (312.9      223.2         (89.7

Noncontrolling interests

     (66.7      —           (66.7
  

 

 

    

 

 

    

 

 

 

Net assets acquired before goodwill on acquisition

  3,610.7      211.2      3,821.9   

Goodwill on acquisition

  1,315.2      (229.8   1,085.4   
  

 

 

    

 

 

    

 

 

 

Net assets acquired

$ 4,925.9    $ (18.6 $ 4,907.3   
  

 

 

    

 

 

    

 

 

 

The measurement period adjustments reflect new information obtained about facts and circumstances that existed at the closing date of the Acquisition, primarily related to indemnification assets, inventories, other miscellaneous current assets and liabilities, property, plant and equipment, intangible assets, and the related deferred income taxes. No measurement period adjustments had a material impact on the statement of operations or cash flows requiring retrospective application.

Goodwill was recognized for the Acquisition as the excess of the purchase price over the net identifiable assets recognized. The Goodwill is primarily attributed to our assembled workforce, corporate and operational synergies and the going concern value of the anticipated future economic benefits associated with DPC being operated as a standalone entity. The goodwill recognized at December 31, 2014 that is expected to be deductible for income tax purposes is $708.0 million.

The fair values of intangible assets were estimated using either the income approach, the excess earnings method (customer relationships) or the relief from royalty method (technology and trademarks). Under the excess earnings method, an intangible asset’s fair value is equal to the present value of the incremental after-tax cash flows attributable solely to the intangible asset over its remaining useful life. Under the relief from royalty method, fair value is measured by estimating future revenue associated with the intangible asset over its useful life and applying a royalty rate to the revenue estimate. These intangible assets enable us to develop new products to meet the evolving business needs as well as competitively produce our existing products.

 

The fair value of real properties acquired was based on the consideration of their highest and best use in the market. The fair values of property, plant, and equipment, other than real properties, were based on the consideration that unless otherwise identified, they will continue to be used “as is” and as part of the ongoing business. In contemplation of the in-use premise and the nature of the assets, the fair value was developed primarily using a cost approach. The determination of the fair value of assets acquired and liabilities assumed involves assessing factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the date of the acquisition.

The fair value of the noncontrolling interests, related to acquired joint ventures, were estimated by applying an income approach. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions included a discount rate, a terminal value based on a range of long-term sustainable growth rates and adjustments because of the lack of control that market participants would consider when measuring the fair value of the noncontrolling interests.

The Company was formed on August 24, 2012 for the purpose of consummating the Acquisition of DPC and, consequently has no financial statements as of and for periods prior to that date. Prior to the Acquisition, we generated no revenue and incurred no expenses other than merger and acquisition costs and debt financing costs in anticipation of the Acquisition. We incurred merger and acquisition related costs of $29.0 million which were expensed during the Successor period August 24, 2012 through December 31, 2012 and incurred debt financing costs of $4.6 million which were recorded as Other assets and Other accrued liabilities as of December 31, 2012 (Successor). The $33.6 million of merger and acquisition related costs and debt financing costs incurred were accrued as a component of Other accrued liabilities at December 31, 2012 (Successor). The amounts were paid at closing of the Acquisition with proceeds from the borrowings under the Senior Secured Credit Facilities.

The following unaudited supplemental pro forma information presents the financial results as if the acquisition of DPC had occurred at January 1, 2012. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been made at January 1, 2012, nor is it indicative of any future results.

 

     Year Ended December 31,  

(in millions, except per share data)

   2013      2012  

Net sales

   $ 4,277.3       $ 4,219.4   

Net loss

   $ (87.1    $ (270.1

Net loss attributable to controlling interests

   $ (93.7    $ (274.6

Earnings per share (Basic and Diluted)

   $ (0.41    $ —     

The 2013 supplemental pro forma net loss was adjusted to exclude $53.1 million ($43.5 million, net of pro forma income tax impact) of acquisition-related costs incurred in 2013 and $123.1 million ($88.6 million, net of pro forma income tax impact) of non-recurring expense consisting primarily of $103.7 million related to the fair market value adjustment to acquisition-date inventory. The 2012 supplemental pro forma net loss was adjusted to include these charges.

Dispositions

In September 2014, we completed the sale of a business within the Performance Coatings reportable segment, which primarily included technology that had been developed as an integrated software solution for the collision repair supply chain market.

 

The sale resulted in the receipt of $17.5 million during the year ended December 31, 2014. As a result, we recognized a pre-tax gain on sale of $1.2 million ($0.7 million after tax) recorded within Other expense, net for the year ended December 31, 2014.

Relationship with DuPont
Relationship with DuPont
(8) RELATIONSHIP WITH DUPONT

Predecessor Periods

Historically, the DPC businesses were managed and operated in the normal course of business with other affiliates of DuPont. Accordingly, certain shared costs were allocated to DPC and reflected as expenses in the standalone Predecessor combined financial statements. Management of DuPont considered the allocation methodologies used to be reasonable and appropriate reflections of the historical DuPont expenses attributable to DPC for purposes of the standalone combined financial statements of DPC; however, the expenses reflected in the Predecessor combined financial statements may not be indicative of the actual expenses that would have been incurred during the periods presented if DPC had operated as a separate, standalone entity. In addition, the expenses reflected in the Predecessor combined financial statements may not be indicative of related expenses that will be incurred in the future by us.

Cash Management and Financing

Except for its joint ventures, DPC participated in DuPont’s centralized cash management and financing programs. Disbursements were made through centralized accounts payable systems which were operated by DuPont, while cash receipts were transferred to centralized accounts maintained by DuPont. As cash was disbursed and received by DuPont, it was accounted for by DPC through the parent company net investment. All short and long-term debt requirements of the DPC business were financed by DuPont and financing decisions for wholly owned subsidiaries and majority owned joint ventures were determined by DuPont’s central treasury operations.

Allocated Corporate Costs

The Predecessor combined financial statements include significant transactions with DuPont involving leveraged functional services (such as information systems, accounting, other financial services, purchasing and legal) and general corporate expenses that were provided to DPC by centralized DuPont organizations. Throughout the Predecessor periods covered by the combined financial statements of DPC, the costs of these leveraged functions and services were directly charged or allocated to DPC using methods management believes were reasonable. The methods for directly charging specifically identifiable functions and services to DPC included negotiated usage rates and dedicated employee assignments. The method for allocating shared leveraged functional services to DPC was based on proportionate formulas involving controllable fixed costs and in certain instances was allocated to DPC based on demand. Controllable fixed costs are fixed costs less depreciation and amortization and nonrecurring transactions. The methods for allocating general corporate expenses to DPC were based on revenue. However, the expenses reflected in the Predecessor combined financial statements may not be indicative of the actual expenses that would have been incurred during the periods presented if DPC had operated as a separate, standalone entity.

The allocated leveraged functional service expenses and general corporate expenses included in cost of goods sold, selling, general, and administrative expenses and research and development expenses in the Predecessor combined statement of operations were as follows:

 

     Predecessor  
     Period from
January 1,
2013 through

January 31,
2013
     Year Ended
December 31,
2012
 

Cost of goods sold

   $ 14.2       $ 224.7   

Selling, general, and administrative expenses

     1.4         21.6   

Research and development expenses

     0.1         2.2   
  

 

 

    

 

 

 

Total

$ 15.7    $ 248.5   
  

 

 

    

 

 

 

Allocated leveraged functional service expenses and general corporate expenses are recorded in the Predecessor combined statement of operations as follows:

 

     Predecessor  
     Period from
January 1,
2013 through
January 31,
2013
     Year Ended
December 31,
2012
 

Leveraged functional services

   $ 14.2       $ 226.4   

General corporate expenses

     1.5         22.1   
  

 

 

    

 

 

 

Total

$ 15.7    $ 248.5   
  

 

 

    

 

 

 

 

Shared Sites

DPC conducted manufacturing operations at 35 plant sites globally. DPC shared three of these plant sites with other non-DPC DuPont manufacturing operations. Additionally, DPC shared warehouse, sales centers, office space, and research and development facilities with other DuPont businesses. In general, the property, plant, and equipment primarily or exclusively used by DPC for these shared locations are included in the Predecessor combined balance sheet.

The full historical cost, accumulated depreciation and depreciation expense for assets at shared manufacturing plant sites and other facilities where DPC was the primary or exclusive user of the assets have been included in the Predecessor combined balance sheet and statement of operations. Accordingly, when the use of a DPC primary asset was shared with a non-DPC DuPont business (manufacturing or otherwise), the cost for the non-DPC usage was deemed to have been charged to the non-DPC business. The amounts credited to cost of goods sold in the Predecessor combined statement of operations for the use of a DPC primary asset by non-DPC businesses, were less than $0.3 million for the Predecessor period from January 1, 2013 through January 31, 2013 and $1.0 million for the Predecessor year ended December 31, 2012.

At shared manufacturing plant sites and other facilities where DPC was not the primary or exclusive user of the assets, the assets were excluded from the Predecessor combined balance sheet. Accordingly, where DPC used these shared assets, DPC was deemed to have been charged a cost for its usage of these shared assets by the other DuPont businesses. The amounts charged to the cost of goods sold in the Predecessor combined statement of operations for the DPC usage of the shared assets were less than $0.2 million for the Predecessor period from January 1, 2013 through January 31, 2013 and $0.4 million for the Predecessor year ended December 31, 2012.

Purchases from and Sales to Other DuPont Businesses

Throughout the Predecessor periods covered by the Predecessor combined financial statements, DPC purchased materials (Titanium Dioxide and DuPont Sontara® maintenance wipes) from DuPont and its non-DPC businesses.

Purchases include the following amounts:

 

    Predecessor  
    Period from
January 1,
2013 through
January 31,
2013
    Year Ended
December 31,
2012
 

DPC purchases of products from other DuPont businesses

  $ 7.9      $ 91.7   

There were no material sales to other DuPont businesses during the periods covered by the Predecessor combined financial statements.

Other Assets
Other Assets
(19) OTHER ASSETS

 

     Successor  
     Year Ended
December 31,
 
     2014      2013  

Available for sale securities

   $ 4.5       $ 4.9   

Deferred income taxes—non-current

     250.0         271.9   

Other

     219.2         218.3   
  

 

 

    

 

 

 

Total

$ 473.7    $ 495.1   
  

 

 

    

 

 

 
Accounts Payable
Accounts Payable
(20) ACCOUNTS PAYABLE

 

     Successor  
     Year Ended
December 31,
 
         2014              2013      

Trade payables

   $ 463.6       $ 428.8   

Non-income taxes

     21.4         40.5   

Other

     9.5         9.2   
  

 

 

    

 

 

 

Total

$ 494.5    $ 478.5   
  

 

 

    

 

 

 
Other Accrued Liabilities
Other Accrued Liabilities
(21) OTHER ACCRUED LIABILITIES

 

     Successor  
     Year Ended
December 31,
 
       2014            2013      

Compensation and other employee-related costs

   $ 153.0       $ 168.0   

Current portion of long-term employee benefit plans

     12.4         13.3   

Restructuring

     48.5         98.4   

Discounts, rebates, and warranties

     68.6         65.0   

Income taxes payable

     20.8         25.1   

Derivative liabilities

     1.5         1.2   

Other

     100.0         101.7   
  

 

 

    

 

 

 

Total

$ 404.8    $ 472.7   
  

 

 

    

 

 

 
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)
(27) QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following is a summary of the quarterly results of operations for the Successor years ended December 31, 2014 and 2013, respectively (in millions, except per share data):

 

2014

   March 31     June 30(b)      September 30(b)     December 31(c)     Full Year  

Total revenue

   $ 1,054.4      $ 1,134.3       $ 1,115.8      $ 1,087.0      $ 4,391.5   

Cost of goods sold

     703.5        742.5         728.1        723.1        2,897.2   

Net income (loss)

     (3.7     55.8         (18.3     0.9        34.7   

Net income (loss) attributable to controlling interests

     (4.3     53.8         (19.9     (2.2     27.4   

Basic net income (loss) per share

     (0.02     0.23         (0.09     (0.01     0.12   

Diluted net income (loss) per share

     (0.02     0.23         (0.09     (0.01     0.12   

2013

   March 31(a)     June 30(a)     September 30      December 31     Full Year  

Total revenue

   $ 675.1      $ 1,122.2      $ 1,082.8       $ 1,106.7      $ 3,986.8   

Cost of goods sold

     539.1        788.5        739.1         706.1        2,772.8   

Net income (loss)

     (156.5     (21.8     6.4         (47.0     (218.9

Net income (loss) attributable to controlling interests

     (157.8     (22.8     5.0         (49.3     (224.9

Basic net income (loss) per share

     (0.67     (0.10     0.02         (0.22     (0.97

Diluted net income (loss) per share

     (0.67     (0.10     0.02         (0.22     (0.97

 

(a) The Company recorded $72.6 million and $31.1 million of non-cash inventory adjustments associated with the fair value adjustment associated with our acquisition during the three months ended March 31, 2013 and June 30, 2013, respectively.
(b) The Company recorded gains of $7.7 million and $7.3 million related to amendments to benefit plans during the three months ended June 30, 2014 and September 30, 2014, respectively.
(c) During the three-months ended December 31, 2014, the Company recorded a $13.4 million pre-tax charge associated with the termination of the management agreement with Carlyle Investment Management, L.L.C., upon the completion of the IPO and a cumulative net benefit of $3.8 million ($0.4 million for the full year) associated with the correction of an error originating in prior periods. The Company concluded the error was not material to the current or previously reported periods.

Reclassification and revisions

During the quarter ended September 30, 2014, the Company identified errors in the determination of the effective interest rate amortization for the Deferred Financing Costs and Original Issue Discounts that were incurred in 2013. The correction of these items impacted the consolidated balance sheet at December 31, 2013, and the consolidated statements of operations, and statements of comprehensive income (loss) for the year ended December 31, 2013. The Company assessed the applicable guidance and concluded that these errors were not material to the Company’s consolidated financial statements for the aforementioned prior periods; however, the Company did conclude that correcting these prior misstatements would be significant to the three and nine-month periods ended September 30, 2014 consolidated statement of operations. The correction had an impact of $3.0 million, $5.1 million, $1.4 million and $2.0 million on Net income (loss) and Net income (loss) attributable to controlling interests in the first, second, third and fourth quarter of 2013, respectively. The correction had an impact of $2.8 million and $2.5 million on Net income (loss) and Net income (loss) attributable to controlling interests in the first and second quarters of 2014, respectively.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

Allowance for Doubtful Accounts for the Successor and Predecessor years ended December 31, 2014 and 2013 and the Predecessor period from January 1, 2013 to January 31, 2013:

 

(in millions)    Balance at
Beginning of
Year
     Charged to
Expenses
     Deductions(1)     Balance at End
of Year
 

Successor

          

2014

   $ 6.5       $ 5.1       $ 1.7      $ 9.9   

2013

     —           5.4         (1.1     6.5   

Predecessor

          

January 1 through January 31, 2013

   $ 29.6       $ 0.2       $ (1.1   $ 30.9   

2012

     31.4         5.0         6.8        29.6   

 

(1) Deductions include uncollectible accounts written off and foreign currency translation impact.
Summary of Significant Accounting Policies (Policies)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Accounting Policies [Abstract]
 
 
New Accounting Pronouncements, Policy
Initial Public Offering
 
Basis of Accounting, Policy
 
Use of Estimates, Policy
 
Business Combinations Policy
 
Consolidation, Policy
 
Revenue Recognition, Policy
 
Cash and Cash Equivalents, Policy
 
Fair Value Measurement, Policy
 
Derivatives, Policy
 
Receivables, Policy
 
Inventory, Policy
 
Property, Plant and Equipment, Policy
 
Goodwill and Intangible Assets, Policy
 
Impairment or Disposal of Long-Lived Assets, Policy
 
Research, Development, and Computer Software, Policy
 
Environmental Costs, Policy
 
Commitments and Contingencies, Policy
 
Income Tax, Policy
 
Foreign Currency Transactions and Translations Policy
 
Pension and Other Postretirement Plans, Pensions, Policy
 
Share-based Compensation, Option and Incentive Plans Policy
 
Earnings Per Share, Policy
 

Accounting Guidance Issued But Not Yet Adopted

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We intend to early adopt this new guidance beginning in the second quarter of 2015. The impacts to the balance sheets at March 31, 2015 and December 31, 2014 would have been corresponding decreases to both total assets and total liabilities of $86.8 million and $91.0 million, respectively.

In February 2015, the FASB issued ASU 2015-02 (Accounting Standard Codification 810), “Consolidation”, which sets forth guidance on accounting for consolidation of certain legal entities. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Although early adoption is permitted, we are still in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows.

In May 2014, the FASB issued ASU 2014-09 (Accounting Standard Codification 606), “Revenue from Contracts with Customers”, 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. Early adoption is not permitted. In April 2015 the FASB proposed a one-year delay in the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and proposed that companies would be allowed to early adopt the guidance as of the original effective date. We are in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows.

Recently Adopted Accounting Guidance

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which amended the guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 and early adoption is permitted. We have adopted this guidance as of December 31, 2014.

In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” issuing changes to the reporting of amounts reclassified out of accumulated other comprehensive income. These changes require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. These requirements are to be applied to each component of accumulated other comprehensive income. This guidance is effective prospectively for annual reporting periods beginning on or after January 1, 2014, and the interim periods within those annual periods. We have included the additional disclosures requirements within Note 26.

Accounting Guidance Issued But Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09 (Accounting Standard Codification 606), “Revenue from Contracts with Customers”, 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. Early adoption is not permitted. We are in the process of assessing the impact the adoption of this ASU will have on our financial position, results of operations and cash flows.

Initial Public Offering

On November 14, 2014, the Company completed its initial public offering (“IPO”). In the IPO, certain of the Company’s shareholders sold an aggregate of 50,000,000 common shares at a public offering price of $19.50 per share. The underwriters also exercised their over-allotment option and purchased an additional 7,500,000 common shares. The Company did not receive any proceeds from the sale of common shares in the IPO.

The consolidated financial statements of Axalta and its subsidiaries and the combined financial statements of DPC have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial statements have been included.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the closing date of the Acquisition and the date of the financial statements and the reported amounts of sales and expenses during the period. The estimates and assumptions include, but are not limited to, receivable and inventory valuations, fixed asset valuations, valuations of goodwill and identifiable intangible assets, including analysis of impairment, valuations of long-term employee benefit obligations, income taxes, environmental matters, litigation, stock-based compensation, restructuring, and allocations of costs. Our estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. Actual results could differ materially from those estimates.

Accounting for Business Combinations

We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets, including separately identifiable intangible assets and assumed liabilities at their acquisition date fair values. The method records any excess purchase price over the fair value of acquired net assets as goodwill.

 

The determination of the fair value of assets acquired, liabilities assumed, and noncontrolling interests involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the closing date of the Acquisition. When necessary, we consult with external advisors to help determine fair value. For non-observable market values, we determine fair value using acceptable valuation principles (e.g., multiple excess earnings, relief from royalty and cost methods).

We included the results of operations from the acquisition date in the financial statements for all businesses acquired.

Principles of Consolidation and Combination

The consolidated financial statements of the Successor (“the Successor statements”) include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which Axalta, directly or indirectly, owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, Axalta’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statement of operations and our share of these companies’ stockholders’ equity is included in the accompanying consolidated balance sheet.

The combined financial statements for the Predecessor (“the Predecessor statements”) include the combined assets, liabilities, revenues, and expenses of DPC.

We eliminated all intercompany accounts and transactions in the preparation of the accompanying consolidated and combined financial statements.

On September 4, 2012, the three partners of the DPC majority-owned DuPont Powder Coatings Saudi Company Ltd. (“DPC Saudi”), a non-US joint venture, signed a new shareholder resolution agreement requiring all partners to unanimously agree to all financial decisions and payments of the business. As a result, DPC concluded that consolidating DPC Saudi was no longer appropriate due to a lack of financial control in the operations of the business. Consequently, DPC deconsolidated the joint venture, and accounted for it under the equity method of accounting in the Predecessor statements. This joint venture investment in DPC Saudi was not an asset acquired from DuPont in the Acquisition. The deconsolidation of DPC Saudi resulted in a loss of $1.0 million for the year ended December 31, 2012, which was recorded in Selling, general and administrative expenses in the combined statement of operations.

Revenue Recognition

We recognize revenue after completing the earnings process. We recognize revenue for product sales when we ship products to the customer in accordance with the terms of the agreement, when there is persuasive evidence of the arrangement, title and risk of loss have been transferred, collectability is reasonably assured and pricing is fixed or determinable.

For a majority of our product sales, title transfers at the shipping point and delivery is considered complete. For certain OEM customers, revenue is recognized at the time the customer applies our coatings to its vehicles, as this represents the point in time that risk of loss has been transferred and delivery is considered complete.

We accrue for sales returns and other allowances based on our historical experience.

 

We incur up-front costs in order to obtain contracts with certain customers. During the Successor periods, we capitalized these up-front costs as a component of Other assets. During the Predecessor periods, we capitalized costs as a component of Identifiable intangibles, net. We amortize the related amounts over the estimated life of the contract as a reduction of net sales.

We include the amounts billed to customers for shipping and handling fees in net sales and costs incurred for the delivery of goods as cost of goods sold in the statement of operations.

Recognition for licensing and royalty income occurs in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured.

Other Revenue

Other revenue includes various elements of income resulting from the normal operation of our business. Other revenue includes, but is not limited to, income for services provided to customers and royalty income.

Cash and Cash Equivalents

Cash equivalents represent highly liquid investments with maturities of three months or less from time of purchase. They are carried at cost plus accrued interest, which approximates fair value because of the short-term maturity of these instruments. Cash balances may exceed government insured limits in certain jurisdictions.

Fair Value Measurements

GAAP defines a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The following valuation techniques are used to measure fair value for assets and liabilities:

Level 1—Quoted market prices in active markets for identical assets or liabilities;

Level 2—Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and

Level 3—Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability.

Derivatives and Hedging

The Company from time to time utilizes derivatives to manage exposures to currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or Accumulated other comprehensive income (“AOCI”), depending on the use of the derivative and whether it qualifies for hedge accounting treatment and is designated as such.

Gains and losses on derivatives that qualify and are designated as cash flow hedging instruments are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income.

 

Gains and losses on derivatives qualifying and designated as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income.

Cash flows from derivatives are recognized in the consolidated and combined statements of cash flows in a manner consistent with the underlying transactions.

Receivables and Allowance for Doubtful Accounts

Receivables are recognized net of an allowance for doubtful accounts receivable. The allowance for doubtful accounts receivable reflects the best estimate of losses inherent in the accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written down or off when a portion or all of such account receivable is determined to be uncollectible.

Inventories

Inventories of the Successor are valued at the lower of cost or market with cost being determined on the weighted average cost method. Elements of cost in inventories include:

 

    raw materials,

 

    direct labor, and

 

    manufacturing overhead

Stores and supplies are valued at the lower of cost or market; cost is generally determined by the weighted average cost method. Inventories deemed to have costs greater than their respective market values are reduced to net realizable value with a loss recorded in income in the period recognized.

Inventories of the Predecessor were valued at the lower of cost or market with cost determined by the last-in, first-out (“LIFO”) method.

Property, Plant and Equipment

Successor periods

Property, plant and equipment of the Successor acquired in the Acquisition were recorded at fair value as of the acquisition date and are depreciated using the straight-line method. Subsequent additions to property, plant and equipment, including the fair value of any asset retirement obligations upon initial recognition of the liability, are recorded at cost and are depreciated using the straight-line method.

Software included in property, plant and equipment represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance and training costs are expensed in the period in which they are incurred.

Property, plant and equipment acquired in the Acquisition are depreciated over their estimated remaining useful lives. The weighted average estimated remaining useful lives of property, plant and equipment acquired in connection with the Acquisition was approximately 11 years. Subsequent additions are either amortized or depreciated on a straight-line basis over a range of estimated useful lives. See Note 18 for a range of estimated useful lives used for each property, plant and equipment class.

 

Predecessor periods

Property, plant and equipment of the Predecessor were carried at cost and were depreciated using the straight-line method. Property, plant and equipment placed in service prior to 1995 were depreciated using the sum-of-the-years’ digits method or other substantially similar methods. Substantially all Predecessor buildings and equipment were depreciated over useful lives ranging from 15 to 25 years.

Goodwill and Other Identifiable Intangible Assets

Goodwill represents the excess of purchase price over the fair values of underlying net assets acquired in an acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis as of October 1; however, these tests are performed more frequently if events or changes in circumstances indicate that the asset may be impaired. The fair value methodology is based on prices of similar assets or other valuation methodologies including discounted cash flow techniques.

When testing goodwill and indefinite-lived intangible assets for impairment, we first have an option to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that an impairment exists. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. In the event the qualitative assessment indicates that an impairment is more likely than not, we would be required to perform a quantitative impairment test, otherwise no further analysis is required.

Under the quantitative goodwill impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, then individual assets (including identifiable intangible assets) and liabilities of the reporting unit are estimated at fair value. The excess of the estimated fair value of the reporting unit over the estimated fair value of its net assets would establish the implied value of goodwill. The excess of the recorded amount of goodwill over the implied value is then charged to earnings as an impairment loss.

Definite-lived intangible assets, such as technology, trademarks, customer relationships and non-compete agreements are amortized over their estimated useful lives, generally for periods ranging from four to 20 years. The reasonableness of the useful lives of these assets is regularly evaluated. Once these assets are fully amortized, they are removed from the balance sheet. We evaluate these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable.

Impairment of Long-Lived Assets

The carrying value of long-lived assets to be held and used is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the asset are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The fair value methodology used is an estimate of fair market value and is based on prices of similar assets or other valuation methodologies including present value techniques. Long-lived assets to be disposed of other than by sale are classified as held for use until their disposal. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived assets classified as held for sale.

Research and Development

Research and development costs incurred in the normal course of business consist primarily of employee-related costs and are expensed as incurred. In process research and development projects acquired in a business combination are recorded as intangible assets at their fair value as of the acquisition date. Subsequent costs related to acquired in process research and development projects are expensed as incurred. Research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. These indefinite-lived intangible assets are tested for impairment consistent with the impairment testing performed on other indefinite-lived intangible assets discussed above. Upon completion of the research and development process, the carrying value of acquired in process research and development projects is reclassified as a finite-lived asset and is amortized over its useful life.

Environmental Liabilities and Expenditures

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued environmental liabilities are not discounted. Claims for recovery from third parties, if any, are reflected separately as an asset. We record recoveries at the earlier of when the gain is probable or realized. For the periods ending December 31, 2014, 2013 and 2012, and January 1, 2013 through January 31, 2013, we have not recognized any assets or income associated with recoveries from third parties.

Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized and depreciated.

Litigation

We accrue for liabilities related to litigation matters when available information indicates that the liability is probable and the amount can be reasonably estimated. Legal costs such as outside counsel fees and expenses are charged to expense in the period incurred.

Income Taxes

Successor periods

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for operating losses and tax credit carry forwards. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income in the period that includes the enactment date.

Where we do not intend to indefinitely reinvest earnings of our foreign subsidiaries, we provide for income taxes and foreign withholding taxes, where applicable, on undistributed earnings. We do not provide for income taxes on undistributed earnings of our foreign subsidiaries that are intended to be indefinitely reinvested.

 

We recognize the benefit of an income tax position only if it is “more likely than not” that the tax position will be sustained. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized. Additionally, we recognize interest and penalties accrued related to unrecognized tax benefits as a component of provision for income taxes. The current portion of unrecognized tax benefits is included in “Income taxes payable” and the long-term portion is included in the long-term income tax payable in the consolidated balance sheets.

Predecessor periods

For all Predecessor periods presented, although DPC was included in the consolidated income tax return of DuPont, DPC’s income taxes are computed and reported under the “separate return method.” Use of the separate return method may result in differences when the sum of the amounts allocated to standalone tax provisions are compared with amounts presented in combined financial statements. In that event, related deferred tax assets and liabilities could be significantly different from those presented herein for the Predecessor periods. Certain tax attributes, e.g., net operating loss carryforwards, which were reflected in the DuPont consolidated financial statements may or may not exist at the standalone DPC level.

Foreign Currency Translation

Successor periods

The reporting currency is the U.S. dollar. In most cases, our non-U.S. based subsidiaries use their local currency as the functional currency for their respective business operations. Assets and liabilities of these operations are translated into U.S. dollars at end-of-period exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Resulting cumulative translation adjustments are recorded as a component of shareholders’ equity in the consolidated balance sheet in Accumulated other comprehensive income (loss).

Gains and losses from transactions denominated in currencies other than the functional currencies are included in the consolidated statement of operations in Other expense, net.

Predecessor periods

The reporting currency is the U.S. dollar. For the Predecessor period, DuPont management determined that the U.S. dollar was the functional currency of DPC’s legal entities and this functional currency was appropriate for the economic environment in which DPC operated during the period covered by the Predecessor combined financial statements. For these legal entities, foreign currency denominated asset and liability amounts were remeasured into U.S. dollars at the end-of-period exchange rates. Nonmonetary assets, such as inventories, prepaid expenses, fixed assets and intangible assets were remeasured into U.S. dollars at historical exchange rates. Foreign currency denominated income and expense elements were remeasured into U.S. dollars at average exchange rates in effect during the year, except for expenses related to nonmonetary assets, which were remeasured at historical exchange rates.

Employee Benefits

Successor periods

In connection with the Acquisition, we assumed certain defined benefit plan obligations and related plan assets for current employees of non-U.S. subsidiaries and certain defined benefit plan obligations and plan assets of former employees of subsidiaries. All defined pension plan obligations for current and former employees in the United States were retained by DuPont.

 

Defined benefit plans specify an amount of pension benefit that an employee will receive upon retirement, usually dependent on factors such as age, years of service and compensation. The net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of the future benefits that employees have earned in return for their service in the current and prior periods. These benefits are then discounted to determine the present value of the obligations and are then adjusted for the impact of any unamortized prior service costs. As required by ASC 805, Business Combinations, all unamortized prior service costs and actuarial gains (losses) existing at the closing date of the Acquisition were eliminated in the determination of the fair value of the pension funded status at acquisition. The net obligation is then determined with reference to the fair value of the plan assets (if any). The discount rate used is the yield on bonds that are denominated in the currency in which the benefits will be paid and that have maturity dates approximating the terms of the obligations. The calculations are performed by qualified actuaries using the projected unit credit method.

Predecessor periods

Certain of DPC’s employees participated in defined benefit pension and other long-term employee benefit plans (the Plans) accounted for in accordance with ASC 715, Compensation—Retirement Benefits. Certain DPC employees were previously covered under DuPont and DuPont subsidiaries’ sponsored plans which were accounted for in accordance with accounting guidance in ASC 715. The majority of pension and other long-term employee expenses during the Predecessor periods were specifically identified by employee. In addition, a portion of expenses was allocated in shared entities and reported within costs of goods sold, selling, general and administrative and research and development expenses in the combined statements of operations. For the U.S. pension plan and other long-term employee benefit plans (the U.S. plans), DuPont considered DPC employees to be part of a multiemployer plan of DuPont. The expense related to the current and former employees of DPC is included in the Predecessor combined financial statements. Non-U.S. pensions and other long-term employee benefit plans (the non-U.S. plans) were accounted for as single employer plans where DPC recorded assets, liabilities and expenses related to the current DPC workforce.

Stock-Based Compensation

Successor periods

Our stock-based compensation for the Successor period, comprised of Axalta stock options, is measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a graded-vesting attribution basis over the requisite service period.

Predecessor periods

DuPont maintained certain stock compensation plans for the benefit of certain of its officers, directors and employees, including DPC’s employees in the Predecessor periods. DPC accounted for all share-based payments to employees, including grants of stock options, based upon their fair values.

For additional information on our stock-based compensation plan, see Note 11.

Earnings per Common Share

Basic earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities; anti-dilutive securities are excluded from the calculation. These potentially dilutive securities are calculated under the treasury stock method and consist of stock options.

Goodwill and Identifiable Intangible Assets (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Schedule of Goodwill
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
In Process Research and Development [Member]
 
 
Schedule of Finite-Lived Intangible Assets
Predecessor [Member]
 
 
Schedule of Goodwill
 

The following table shows changes in the carrying amount of goodwill from December 31, 2014 to March 31, 2015 by reportable segment:

 

     Performance
Coatings
     Transportation
Coatings
     Total  

At December 31, 2014

   $ 933.6       $ 67.5         1,001.1   

Goodwill from acquisition

     12.5         —           12.5   

Foreign currency translation

     (90.3      (6.5      (96.8
  

 

 

    

 

 

    

 

 

 

March 31, 2015

$ 855.8    $ 61.0    $ 916.8   
  

 

 

    

 

 

    

 

 

 

The following table shows changes in the carrying amount of goodwill for the Successor years ended December 31, 2014 and 2013 by reportable segment:

 

     Performance
Coatings
     Transportation
Coatings
     Total  

At January 1, 2013

   $ —         $ —         $ —     

Goodwill resulting from Acquisition

     1,012.5         72.9         1,085.4   

Foreign currency translation

     26.3         1.9         28.2   
  

 

 

    

 

 

    

 

 

 

At December 31, 2013

$ 1,038.8    $ 74.8    $ 1,113.6   

Purchase accounting adjustments

  5.7      0.4      6.1   

Divestitures

  (4.7   —        (4.7

Foreign currency translation

  (106.2   (7.7   (113.9
  

 

 

    

 

 

    

 

 

 

December 31, 2014

$ 933.6    $ 67.5    $ 1,001.1   
  

 

 

    

 

 

    

 

 

 

The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:

 

March 31, 2015

   Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Weighted
average

amortization
periods (years)
 

Technology

   $ 411.8       $ (86.5    $ 325.3         10.0   

Trademarks—indefinite-lived

     284.4         —           284.4         Indefinite   

Trademarks—definite-lived

     41.9         (6.2      35.7         14.8   

Customer relationships

     676.9         (76.5      600.4         19.4   

Non-compete agreements

     1.9         (0.9      1.0         4.6   
  

 

 

    

 

 

    

 

 

    

Total

$ 1,416.9    $ (170.1 $ 1,246.8   
  

 

 

    

 

 

    

 

 

    

 

December 31, 2014

   Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Weighted average
amortization
periods (years)
 

Technology

   $ 411.8       $ (76.3    $ 335.5         10.0   

Trademarks—indefinite-lived

     284.4         —           284.4         Indefinite   

Trademarks—definite-lived

     41.8         (5.5      36.3         14.8   

Customer relationships

     713.9         (71.3      642.6         19.4   

Non-compete agreements

     2.0         (0.8      1.2         4.6   
  

 

 

    

 

 

    

 

 

    

Total

$ 1,453.9    $ (153.9 $ 1,300.0   
  

 

 

    

 

 

    

 

 

    

The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:

 

December 31, 2014

   Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Weighted average
amortization
periods (years)
 

Technology

   $ 411.8       $ (76.3    $ 335.5         10.0   

Trademarks—indefinite-lived

     284.4         —           284.4         Indefinite   

Trademarks—definite-lived

     41.8         (5.5      36.3         14.8   

Customer relationships

     713.9         (71.3      642.6         19.4   

Non-compete agreements

     2.0         (0.8      1.2         4.6   
  

 

 

    

 

 

    

 

 

    

Total

$ 1,453.9    $ (153.9 $ 1,300.0   
  

 

 

    

 

 

    

 

 

    

 

December 31, 2013

   Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Weighted average
amortization
periods (years)
 

Technology

   $ 425.2       $ (37.3    $ 387.9         10.0   

Trademarks—indefinite-lived

     284.4         —           284.4         Indefinite   

Trademarks—definite-lived

     41.7         (2.6      39.1         14.8   

Customer relationships

     761.9         (34.9      727.0         19.4   

Non-compete agreements

     1.5         (0.3      1.2         4.0   
  

 

 

    

 

 

    

 

 

    

Total

$ 1,514.7    $ (75.1 $ 1,439.6   
  

 

 

    

 

 

    

 

 

    

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2015 and each of the succeeding four years is:

 

Remainder of 2015

$ 59.7   

2016

$ 79.6   

2017

$ 79.2   

2018

$ 79.2   

2019

$ 79.2   

The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is:

 

2015

$ 81.6   

2016

$ 81.6   

2017

$ 81.1   

2018

$ 81.0   

2019

$ 81.0   

Activity related to in process research and development projects for the three months ended March 31, 2015 was:

 

In Process Research and Development

   Activity  

Balance at December 31, 2014

   $ 5.2   

Completed

     (1.5

Abandoned

     —     
  

 

 

 

Balance at March 31, 2015

$ 3.7   
  

 

 

 

Activity related to in process research and development projects for the successor years ended December 31, 2013 and 2014:

 

In Process Research and Development

   Activity  

Balance at February 1, 2013

   $ 25.4   

Completed

     (6.5

Abandoned

     (3.2
  

 

 

 

Balance at December 31, 2013

$ 15.7   

Completed

  (10.4

Abandoned

  (0.1
  

 

 

 

Balance at December 31, 2014

$ 5.2   
  

 

 

 

The following table shows changes in the carrying amount of goodwill for the Predecessor year ended December 31, 2012 and the Predecessor period from January 1, 2013 to January 31, 2013 by reportable segment:

 

     Performance
Coatings
     Transportation
Coatings
     Total  

At January 1, 2012

   $ 517.9       $ 70.9       $ 588.8   

Foreign currency translation

     —           —           —     
  

 

 

    

 

 

    

 

 

 

December 31, 2012

$ 517.9    $ 70.9    $ 588.8   

Foreign currency translation

  —        —        —     
  

 

 

    

 

 

    

 

 

 

January 31, 2013

$ 517.9    $ 70.9    $ 588.8   
  

 

 

    

 

 

    

 

 

 
Restructuring (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
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, 2014 to March 31, 2015:

 

     2015 Activity  

Balance at December 31, 2014

   $ 48.5   

Expense Recorded

     2.2   

Payments Made

     (14.0

Foreign Currency Changes

     (5.0
  

 

 

 

Balance at March 31, 2015

$ 31.7   
  

 

 

 
Restructuring and Related Costs

The following tables summarize the activities related to the restructuring reserves, recorded within other accrued liabilities, and expenses for the Successor years ended December 31, 2013 and 2014:

 

     2013 Activity  

Balance at February 1, 2013 (At acquisition date)

   $ 0.5   

Expense recorded

     120.7   

Payments

     (23.7

Foreign currency translation

     0.9   
  

 

 

 

Balance at December 31, 2013

$ 98.4   
  

 

 

 
     2014 Activity  

Balance at December 31, 2013

   $ 98.4   

Expense Recorded

     8.5   

Payments Made

     (51.6

Foreign Currency Changes

     (6.8
  

 

 

 

Balance at December 31, 2014

$ 48.5   
  

 

 

 
Long-term Employee Benefits (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
 
 
Schedule of Net Benefit Costs
Schedule of Multiemployer Plans
 
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
 
Schedule of Accumulated and Projected Benefit Obligations
 
Schedule of Net Periodic Benefit Cost Not yet Recognized
 
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year
 
Schedule of Assumptions Used
 
Schedule of Expected Benefit Payments
 
Schedule of Allocation of Plan Assets
 
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block]
 

The following table sets forth the components of net periodic benefit (gain) cost for the three months ended March 31, 2015 and 2014.

 

     Pension Benefits  
     Three Months Ended March 31,  
              2015                        2014           

Components of net periodic benefit cost:

     

Net periodic benefit cost:

     

Service cost

   $ 3.1       $ 4.6   

Interest cost

     4.6         6.0   

Expected return on plan assets

     (3.7      (3.7

Amortization of actuarial (gain) loss, net

     0.3         (0.1

Amortization of prior service credit, net

     (0.1      —     
  

 

 

    

 

 

 

Net periodic benefit cost

$ 4.2    $ 6.8   
  

 

 

    

 

 

 

 

     Other Long-Term Employee Benefits  
     Three Months Ended March 31,  
                 2015                              2014              

Components of net periodic benefit (gain) cost:

     

Net periodic benefit (gain) cost:

     

Service cost

   $ —         $ —     

Interest cost

     —           0.1   

Amortization of prior service credit

     (0.9      —     
  

 

 

    

 

 

 

Net periodic benefit (gain) cost

$ (0.9 $ 0.1   
  

 

 

    

 

 

 

The following table sets forth the components of net periodic benefit costs for the Successor years ended December 31, 2014 and 2013 and the Predecessor year ended December 31, 2012.

 

     Pension Benefits  
     Successor            Predecessor  
     Year Ended
December 31,
    Period from
August 24,
2012
through
December 31,
           Period from
January 1,
2013
through
January 31,
    Year Ended
December 31,
 
     2014     2013     2012            2013     2012  

Components of net periodic benefit cost and amounts recognized in other comprehensive (income) loss:

                

Net periodic benefit (credit) cost:

                

Service cost

   $ 15.4      $ 17.0      $ —              $ 1.6      $ 14.8   

Interest cost

     22.9        21.2        —                1.8        22.0   

Expected return on plan assets

     (14.8     (11.9     —                (1.9     (18.4

Amortization of actuarial (gain) loss, net

     (0.3     —          —                1.1        5.2   

Amortization of prior service cost

     —          —          —                —          0.2   

Curtailment gain

     (7.3     —          —                —          —     

Settlement loss

     0.1        —          —                —          3.9   
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

Net periodic benefit cost

  16.0      26.3      —          2.6      27.7   
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:

 

Net actuarial (gain) loss, net

  60.6      (10.6   —          —        112.7   

Amortization of actuarial gain (loss), net

  0.3      —        —          (1.1   (5.2

Prior service benefit

  (4.3   (0.4   —          —        (0.3

Amortization of prior service cost

  —        —        —          —        (0.2

Curtailment gain

  7.3      —        —          —        —     

Settlement loss

  (0.1   —        —          —        (3.9

Net translation adjustment

  (4.9   0.6      —          —        —     
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

Total (gain) loss recognized in other comprehensive income

  58.9      (10.4   —          (1.1   103.1   
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

Total recognized in net periodic benefit cost and other comprehensive (income) loss

$ 74.9    $ 15.9    $ —        $ 1.5    $ 130.8   
  

 

 

   

 

 

   

 

 

         

 

 

   

 

 

 

 

     Other Long-Term Employee Benefits  
     Successor     Predecessor  
     Year Ended
December 31,
    Period from
August 24,
2012
through
December 31,
    Period from
January 1,
2013
through
January 31,
     Year Ended
December 31,
 
     2014     2013     2012     2013      2012  

Components of net periodic benefit cost and amounts recognized in other comprehensive (income) loss:

             

Net periodic benefit credit cost:

             

Service cost

   $ 0.1      $ 0.2      $ —        $ —         $ 0.3   

Interest cost

     0.1        0.2        —          —           0.5   

Amortization of actuarial loss, net

     0.1        —          —          —           —     

Amortization of prior service cost (benefit)

     (1.4     —          —          —           0.2   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic benefit cost

  (1.1   0.4      —        —        1.0   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:

 

Net actuarial (gain) loss

  (4.6   (0.7   —        —        2.7   

Amortization of actuarial gain (loss)

  (0.1   —        —        —        —     

Prior service benefit

  —        —        —        —        (5.9

Amortization of prior service benefit (cost)

  1.4      —        —        —        (0.2

Net translation adjustment

  —        0.1      —        —        —     
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total (gain) loss recognized in other comprehensive income

  (3.3   (0.6   —        —        (3.4
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total recognized in net periodic benefit cost and other comprehensive income

$ (4.4 $ (0.2 $ —      $ —      $ (2.4
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

The following table presents pension expense allocated by DuPont to DPC for DuPont’s significant plans in which DPC participated.

 

            Predecessor         

Plan Name

   EIN/
Pension Number
     January 1,
2013 through
January 31,
2013
     Year Ended
December 31,
2012
 

DuPont Pension and Retirement Plan

     51-0014090/001       $ 4.2       $ 40.6   

All Other Plans

      $ 0.7       $ 16.7   

The following table sets forth the changes to the projected benefit obligations (“PBO”) and plan assets for the Successor year ended December 31, 2014 and 2013 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2014 and 2013 for the Company’s defined benefit pension and other long-term benefit plans:

 

    Defined Benefits     Other Long-Term Employee
Benefits
 
    Successor     Successor  
    Year Ended December 31,     Year Ended December 31,  

Obligations and Funded Status

      2014             2013         2014     2013  

Change in benefit obligation:

       

Projected benefit obligation at beginning of year

  $ 603.0      $ —        $ 4.6      $ —     

Fair value of assumed obligation at Acquisition date

    —          579.5        —          5.2   

Service cost

    15.4        17.0        0.1        0.2   

Interest cost

    22.9        21.2        0.1        0.2   

Participant contributions

    1.0        1.0        —          —     

Actuarial losses (gains)—net

    85.8        (5.8     1.1        (0.7

Plan curtailments and settlements

    (16.3     (1.4     —          —     

Benefits paid

    (30.1     (20.7     —          —     

Amendments

    (4.3     (0.4     (5.7     —     

Currency translation adjustment

    (64.3     12.6        (0.1     (0.3
 

 

 

   

 

 

   

 

 

   

 

 

 

Projected benefit obligation at end of year

  613.1      603.0      0.1      4.6   
 

 

 

   

 

 

   

 

 

   

 

 

 

Change in plan assets:

Fair value of plan assets at beginning of year

  281.3      —        —        —     

Fair value of plan assets at Acquisition date

  —        250.7      —        —     

Actual return on plan assets

  26.5      16.0      —        —     

Employer contributions

  40.9      28.6      —        —     

Participant contributions

  1.0      1.0      —        —     

Benefits paid

  (30.1   (20.7   —        —     

Settlements

  (2.7   (0.6   —        —     

Currency translation adjustment

  (22.4   6.3      —        —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets at end of year

  294.5      281.3      —        —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Funded status, net

$ (318.6 $ (321.7 $ (0.1 $ (4.6
 

 

 

   

 

 

   

 

 

   

 

 

 

Amounts recognized in the consolidated balance sheets consist of:

Other assets

$ 0.1    $ 0.2    $ —      $ —     

Other accrued liabilities

  (12.4   (13.3   —        —     

Accrued pension and other long-term employee benefits

  (306.3   (308.6   (0.1   (4.6
 

 

 

   

 

 

   

 

 

   

 

 

 

Net amount recognized

$ (318.6 $ (321.7 $ (0.1 $ (4.6
 

 

 

   

 

 

   

 

 

   

 

 

 

The following table reflects the ABO for all defined benefit pension plans as of December 31, 2014 and 2013. Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets.

 

     Successor  
     Year Ended December 31,  
         2014              2013      

ABO

   $ 559.4       $ 541.5   

Plans with PBO in excess of plan assets:

     

PBO

   $ 606.2       $ 595.7   

ABO

   $ 553.2       $ 534.9   

Fair value plan assets

   $ 287.5       $ 273.8   

Plans with ABO in excess of plan assets:

     

PBO

   $ 602.0       $ 537.8   

ABO

   $ 550.9       $ 488.9   

Fair value plan assets

   $ 285.1       $ 227.2   

The pretax amounts not yet reflected in net periodic benefit cost and included in Accumulated other comprehensive income (loss) include the following:

 

Defined Benefits:    Successor  
     Year Ended December 31,  
         2014              2013      

Accumulated net actuarial gains (losses)

   $ (52.6    $ 10.0   

Accumulated prior service (cost) credit

     4.3         0.4   
  

 

 

    

 

 

 

Total

$ (48.3 $ 10.4   
  

 

 

    

 

 

 

 

Other Long-Term Employee Benefits:    Successor  
     Year Ended December 31,  
         2014              2013      

Accumulated net actuarial gains (losses)

   $ (0.4    $ 0.6   

Accumulated prior service (cost) credit

     4.1         —     
  

 

 

    

 

 

 

Total

$ 3.7    $ 0.6   
  

 

 

    

 

 

 

The estimated pre-tax amounts that are expected to be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost during 2015 for the defined benefit plans and other long-term employee benefit plans is as follows:

 

     2015  
     Defined Benefits      Other Long-Term
Employee Benefits
 

Amortization of net actuarial gains (losses)

   $ (1.1    $ —     

Amortization of prior service (cost) credit

     0.3         4.1   
  

 

 

    

 

 

 

Total

$ (0.8 $ 4.1   
  

 

 

    

 

 

 

We used the following assumptions in determining the benefit obligations and net periodic benefit cost:

 

     Successor           Predecessor  
       2014         2013             2012  

Defined benefits

           

Weighted-average assumptions:

           

Discount rate to determine benefit obligations

     3.23     4.11          3.38

Discount rate to determine net cost

     4.11     4.15          4.73

Rate of future compensation increases to determine benefit obligation

     3.57     3.52          3.16

Rate of future compensation increases to determine net cost

     3.52     3.69          3.33

Rate of return on plan assets to determine net cost

     5.23     5.22          7.71

 

     Successor           Predecessor  
       2014         2013             2012  

Other Long-Term Employee benefits

           

Weighted-average assumptions:

           

Discount rate to determine benefit obligations

     1.50     4.80          4.86

Discount rate to determine net cost

     4.80     4.20          7.28

Rate of future compensation increases to determine benefit obligations

     —          —               3.00

Rate of future compensation increases to determine net cost

     —          —               4.00

The following reflects the total benefit payments expected to be paid for defined benefits:

 

Year ended December 31,

   Benefits  

2015

   $ 34.8   

2016

   $ 27.1   

2017

   $ 29.8   

2018

   $ 31.0   

2019

   $ 37.6   

2020—2024

   $ 180.3   

The following reflects the total benefit payments expected to be paid for other long-term employee benefits:

 

Year ended December 31,

   Benefits  

2015

   $ —     

2016

   $ 0.1   

2017

   $ —     

2018

   $ —     

2019

   $ —     

2020—2024

   $ —     

The table below summarizes the weighted average target pension plan asset allocation at December 31 for all Axalta defined benefit plans.

 

Asset Category

   2014     2013     Target Allocation  

Equity securities

     35-40     35-40     35-40

Debt securities

     35-40     35-40     35-40

Real estate

     0-1     0-1     0-1

Other

     20-25     20-25     20-25

The table below presents the fair values of the defined benefit pension plan assets by level within the fair value hierarchy, as described in Note 3, at December 31, 2014 and 2013, respectively.

 

     Fair value measurements at
December 31, 2014
 
     Total      Level 1      Level 2      Level 3  

Asset Category:

           

Cash and cash equivalents

   $ 4.4       $ 4.4       $ —         $ —     

U.S. equity securities

     16.1         16.1         —           —     

Non-U.S. equity securities

     79.2         78.7         0.4         0.1   

Debt—government issued

     36.9         36.3         0.6         —     

Debt—corporate issued

     55.3         53.0         —           2.3   

Hedge Funds

     0.2         0.1         0.1         —     

Private market securities

     63.2         0.1         0.1         63.0   

Real estate

     0.4         —           —           0.4   
  

 

 

    

 

 

    

 

 

    

 

 

 
  255.7    $ 188.7    $ 1.2    $ 65.8   
     

 

 

    

 

 

    

 

 

 

Pension trust receivables

  38.8   
  

 

 

          

Total

$ 294.5   
  

 

 

          

 

     Fair value measurements at
December 31, 2013
 
     Total      Level 1      Level 2      Level 3  

Asset Category:

           

Cash and cash equivalents

   $ 6.7       $ 6.7       $ —         $ —     

U.S. equity securities

     13.6         13.2         0.4         —     

Non-U.S. equity securities

     71.3         70.8         0.5         —     

Debt—government issued

     34.4         34.4         —           —     

Debt—corporate issued

     52.2         49.3         2.9         —     

Hedge Funds

     0.4         0.2         0.2         —     

Private market securities

     59.5         —           0.2         59.3   

Real estate

     0.3         —           —           0.3   
  

 

 

    

 

 

    

 

 

    

 

 

 
  238.4    $ 174.6    $ 4.2    $ 59.6   
     

 

 

    

 

 

    

 

 

 

Pension trust receivables

  42.9   
  

 

 

          

Total

$ 281.3   
  

 

 

          

The tables below present a roll forward of activity for these assets for the years ended December 31, 2014 and 2013.

 

     Level 3 assets  
     Total      Private
market
securities
     Debt and
Equity
     Real
estate
 

Ending balance at December 31, 2012

   $ 12.2       $ 10.5       $ —         $ 1.7   

Realized (loss)

     (0.1      —           —           (0.1

Change in unrealized gain

     0.2         0.2         —           —     

Purchases, sales, issues and settlements

     45.6         46.9         —           (1.3

Transfers in/(out) of Level 3

     1.7         1.7         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance at December 31, 2013

$ 59.6    $ 59.3    $ —      $ 0.3   

Realized (loss)

  —        —        —        —     

Change in unrealized gain

  0.2      —        —        0.2   

Purchases, sales, issues and settlements

  6.0      3.7      2.4      (0.1

Transfers in/(out) of Level 3

  —        —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance at December 31, 2014

$ 65.8    $ 63.0    $ 2.4    $ 0.4   
  

 

 

    

 

 

    

 

 

    

 

 

 
Other Expense, Net (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Schedule of Other Nonoperating Income (Expense)
     Three Months Ended March 31,  
              2015                        2014           

Exchange losses, net

   $ 8.7       $ 0.1   

Management fees and expenses

     —           0.8   

Other (income) expense

     (4.8      3.6   
  

 

 

    

 

 

 

Total

$ 3.9    $ 4.5   
  

 

 

    

 

 

 
Schedule of Other Nonoperating Income (Expense)
    Successor            Predecessor  
    Year Ended
December 31,
    Period from
August 24, 2012
through

December 31,
           Period from
January 1, 2013
through
January 31,
     Year Ended
December 31,
 
    2014     2013     2012            2013      2012  

Exchange losses, net

  $ 81.2      $ 48.9      $ —              $ 4.5       $ 17.7   

Management fees and expenses

    16.6        3.1        —                —           —     

Other

    17.2        (3.5     —                0.5         (1.4
 

 

 

   

 

 

   

 

 

         

 

 

    

 

 

 

Total

$ 115.0    $ 48.5    $ —        $ 5.0    $ 16.3   
 

 

 

   

 

 

   

 

 

         

 

 

    

 

 

 
Income Taxes (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
Schedule of Effective Income Tax Rate Reconciliation
Schedule of Income before Income Tax, Domestic and Foreign
 
Schedule of Components of Income Tax Expense (Benefit)
 
Schedule of Deferred Tax Assets and Liabilities
 
Schedule of Unrecognized Tax Benefits Roll Forward
 

Our effective income tax rates for the three months ended March 31, 2015 and March 31, 2014 are as follows:

 

     Three Months Ended March 31,  
              2015                       2014           

Effective Tax Rate

     2.5     144.6

Reconciliation to US Statutory Rate

 

     Successor          Predecessor  
     Year Ended
December 31,
2014
    Year Ended
December 31,
2013
    Period from
August 24,
2012 through
December 31,
2012
         Period from
January 1
2013 through
January 31,
2013
    Year Ended
December 31,
2012
 

Statutory U.S. federal income tax / rate(1)

   $ 12.9        35.0   $ (92.3     35.0   $ (10.1     35.0      $ 5.5        35.0   $ 137.6        35.0

Foreign income taxed at rates other than 35%

     (46.7     (127.0     (36.6     13.9        10.1        (35.0        1.0        6.6        (10.9     (2.8

Changes in valuation allowances

     44.4        120.9        55.0        (20.9     —          —             1.4        8.9        9.8        2.5   

Foreign exchange (gain) loss

     8.7        23.7        8.7        (3.3     —          —             0.5        3.1        4.7        1.2   

Unrecognized tax benefits(2)

     (44.0     (119.7     35.1        (13.2     —          —             —          —          —          —     

Withholding taxes, net

     (0.3     (0.8     8.3        (3.2     —          —             —          —          —          —     

Non-deductible interest

     15.4        41.9        6.4        (2.4     —          —             —          —          —          —     

Non-deductible expenses

     14.2        38.6        19.4        (7.4     —          —             —          —          —          —     

Tax credits

     (3.6     (9.8     (1.0     0.4        —          —             —          —          —          —     

Capital loss(3)

     —          —          (46.7     17.7        —          —             —          —          —          —     

Other—net

     1.1        2.9        (1.1     0.4        —          —             (1.3     (8.0     4.0        1.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

 

Total income tax (benefit)/ effective tax rate

$ 2.1      5.7 $ (44.8   17.0 $ —        —      $ 7.1      45.6 $ 145.2      37.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) The U.S. statutory rate has been used as management believes it is more meaningful to the Company.
(2) Within this amount, the Company released and recorded an unrecognized tax benefit of $21.1 million related to non-deductible interest and debt acquisition costs in 2014 and 2013. These adjustments were fully offset by changes in the valuation allowance.
(3) In 2013, the Company recognized a tax benefit of $46.7 million related to a capital loss, which is fully offset by a $46.7 million increase to the valuation allowance.

Domestic and Foreign Components of Income (Loss) Before Income Taxes

 

     Successor           Predecessor  
     Year Ended
December 31,
     Period from
August 24, 2012
through

December 31,
          Period from
January 1, 2013
through
January 31,
     Year Ended
December 31,
 
     2014      2013      2012           2013      2012  

Domestic

   $ (8.8    $ (153.8    $ —             $ (1.5    $ 82.8   

Foreign

     45.6         (109.9      (29.0          17.1         310.2   
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

$ 36.8    $ (263.7 $ (29.0   $ 15.6    $ 393.0   
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Provision (Benefit) for Income Taxes

 

    Successor  
    Year Ended December 31,
2014
    Year Ended December 31,
2013
    Period from August 24,
2012 through December 31, 2012
 
    Current     Deferred     Total     Current     Deferred     Total     Current     Deferred     Total  

U.S. Federal

  $ —        $ (2.1   $ (2.1   $ —        $ (43.7   $ (43.7   $ —        $ —        $ —     

State

    2.0        (2.9     (0.9     2.3        (2.5     (0.2     —          —          —     

Foreign

    38.3        (33.2     5.1        73.7        (74.6     (0.9     —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 40.3    $ (38.2 $ 2.1    $ 76.0    $ (120.8 $ (44.8 $ —      $ —      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Predecessor  
     Period from January 1, 2013
through January 31, 2013
     Year Ended December 31, 2012  
     Current      Deferred      Total      Current      Deferred      Total  

U.S. Federal

   $ (8.8    $ 7.0       $ (1.8    $ 30.9       $ (4.5    $ 26.4   

State

     0.1         (0.2      (0.1      6.6         (0.4      6.2   

Foreign

     6.7         2.3         9.0         98.6         14.0         112.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ (2.0 $ 9.1    $ 7.1    $ 136.1    $ 9.1    $ 145.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Deferred Tax Balances

 

     Successor  
     Year Ended
December 31,
 
     2014      2013  

Deferred tax asset

     

Tax loss and credit carryforwards

   $ 185.6       $ 111.7   

Goodwill and intangibles

     90.8         89.4   

Compensation & employee benefits

     92.4         79.1   

Accruals & other reserves

     58.0         40.5   

Interest expense

     13.4         8.6   

Total deferred tax assets

     440.2         329.3   

Less: Valuation allowance

     (101.9      (63.4
  

 

 

    

 

 

 

Net, deferred tax assets

  338.3      265.9   

Deferred tax liabilities

Inventory

  (3.0   (1.3

Property, Plant & Equipment

  (215.0   (218.5

Accounts Receivable & Other Assets

  (2.5   (8.4

Equity Investment & Other Securities

  (2.2   (5.8

Unremitted earnings

  (8.5   (15.9

Long-Term Debt

  (8.1   —     
  

 

 

    

 

 

 

Total deferred tax liabilities

  (239.3   (249.9
  

 

 

    

 

 

 

Net deferred tax asset/(liability)

$ 99.0    $ 16.0   

Current asset

$ 64.5    $ 30.0   

Current liability

  (7.3   (5.5

Non-current assets

  250.0      271.9   

Non-current liability

  (208.2   (280.4
  

 

 

    

 

 

 

Net deferred tax asset

$ 99.0    $ 16.0   
  

 

 

    

 

 

 

Total Gross Unrecognized Tax Benefits

 

    Successor           Predecessor  
    Year Ended
December 31,
    Period from
January 1
2013 through
January 31,
          Period from
January 1
2013 through
January 31,
    Year Ended
December 31,
 
    2014     2013     2013           2013     2012  

Balance at January 1

  $ 38.9      $ —        $ —             $ —        $ —     

Increases related to acquisition

    —          11.3        —               —          —     

Increases related to positions taken on items from prior years

    —          —          —               —          —     

Decreases related to positions taken on items from prior years

    (33.6     —          —               —          —     

Increases related to positions taken in the current year

    —          27.6        —               —          —     

Settlement of uncertain tax positions with tax authorities

    —          —          —               —          —     

Decreases due to expiration of statutes of limitations

    —          —          —               —          —     
 

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Balance at December 31

$ 5.3    $ 38.9    $ —        $ —      $ —     
 

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 
Earnings (Loss) Per Common Share (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Schedule of Earnings Per Share, Basic and Diluted

A reconciliation of the Company’s basic and diluted earnings (loss) per common share is as follows (in millions, except earnings (loss) per share):

 

     Three Months Ended March 31,  

(In millions, except per share data)

            2015                        2014           

Net income (loss) to common shareholders

   $ 45.1       $ (4.3

Basic weighted average shares outstanding

     229.8         229.1   

Diluted weighted average shares outstanding

     237.0         229.1   

Earnings per Common Share:

     

Basic net income (loss) per share

   $ 0.20       $ (0.02

Diluted net income (loss) per share

   $ 0.19       $ (0.02
Schedule of Earnings Per Share, Basic and Diluted

A reconciliation of the Company’s basic and diluted earnings per common share is as follows (in millions, except earnings per share):

 

     Successor  
     Year Ended
December 31,
     Period from
August 24, 2012
through
December 31,
2012
 
(In millions, except per share data)    2014      2013      2012  

Net income (loss) attributable to Axalta

   $ 27.4       $ (224.9    $ (29.0

Pre-Acquisition net loss attributable to Axalta

     —           (3.9      (29.0
  

 

 

    

 

 

    

 

 

 

Net income (loss) to common shareholders(1)

$ 27.4    $ (221.0 $ —     

Basic and diluted weighted average shares outstanding(1)

  229.3      228.3      —     

Diluted weighted average shares outstanding

  230.3      228.3      —     

Earnings per Common Share:

Basic net income (loss) per share

$ 0.12    $ (0.97 $ —     

Diluted net income (loss) per share

$ 0.12    $ (0.97 $ —     

 

  (1) As of February 1, 2013, the date of the Acquisition, the Company received the initial Equity Contribution of $1,350.0 million. Accordingly, the net loss to common shareholders and the weighted average shares outstanding calculation is based on the period from February 1, 2013 to December 31, 2013.
Accounts and Notes Receivable, Net (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Schedule of Accounts, Notes, Loans and Financing Receivable
     March 31, 2015      December 31, 2014  

Accounts receivable—trade, net

   $ 664.1       $ 638.3   

Notes receivable

     42.9         45.5   

Other

     126.0         136.6   
  

 

 

    

 

 

 

Total

$ 833.0    $ 820.4   
  

 

 

    

 

 

 
Schedule of Accounts, Notes, Loans and Financing Receivable
     Successor  
     Year Ended
December 31,
 
     2014      2013  

Accounts receivable—trade, net

   $ 638.3       $ 637.5   

Notes receivable

     45.5         44.7   

Other

     136.6         183.7   
  

 

 

    

 

 

 

Total

$ 820.4    $ 865.9   
  

 

 

    

 

 

 
Inventories (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Schedule of Inventory, Current
     March 31, 2015      December 31, 2014  

Finished products

   $ 316.3       $ 323.7   

Semi-finished products

     87.9         81.3   

Raw materials and supplies

     137.1         133.3   
  

 

 

    

 

 

 

Total

$ 541.3    $ 538.3   
  

 

 

    

 

 

 
Schedule of Inventory, Current
     Successor  
     Year Ended
December 31,
 
         2014              2013      

Finished products

   $ 323.7       $ 329.3   

Semi-finished products

     81.3         90.2   

Raw materials and supplies

     133.3         130.7   
  

 

 

    

 

 

 

Total

$ 538.3    $ 550.2   
  

 

 

    

 

 

 
Property, Plant and Equipment, Net (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment

Depreciation expense amounted to $41.3 million and $48.4 million for the three months ended March 31, 2015 and 2014, respectively.

 

     March 31, 2015      December 31, 2014  

Property, plant and equipment

   $ 1,776.3       $ 1,858.2   

Accumulated depreciation

     (364.6      (344.1
  

 

 

    

 

 

 

Property, plant, and equipment, net

$ 1,411.7    $ 1,514.1   
  

 

 

    

 

 

 
Property, Plant and Equipment
          Successor  
          Year Ended
December 31,
 
     Useful Lives (years)    2014      2013  

Land

      $ 90.5       $ 99.9   

Buildings and improvements

   5 -25      418.4         430.7   

Machinery and equipment

   3 -25      1,060.1         1,087.0   

Software

   5 - 7      122.1         42.4   

Other

   3 -20      29.1         26.3   

Construction in progress

        138.0         119.9   
     

 

 

    

 

 

 

Total

  1,858.2      1,806.2   
     

 

 

    

 

 

 

Accumulated depreciation

  (344.1   (183.6
     

 

 

    

 

 

 

Property, plant, and equipment, net

$ 1,514.1    $ 1,622.6   
     

 

 

    

 

 

 
Borrowings (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014

Borrowings are summarized as follows:

 

     March 31, 2015      December 31, 2014  

Dollar Term Loan

   $ 2,159.8       $ 2,165.5   

Euro Term Loan

     425.0         481.0   

Dollar Senior Notes

     750.0         750.0   

Euro Senior Notes

     270.4         305.3   

Short-term borrowings

     14.3         12.2   

Other borrowings

     6.1         0.7   

Unamortized original issue discount

     (17.3      (18.3
  

 

 

    

 

 

 
$ 3,608.3    $ 3,696.4   

Less:

Short term borrowings

$ 14.3    $ 12.2   

Current portion of long-term borrowings

  27.3      27.9   
  

 

 

    

 

 

 

Long-term debt

$ 3,566.7    $ 3,656.3   
  

 

 

    

 

 

 

Borrowings are summarized as follows:

 

     Successor  
     Year Ended
December 31,
 
     2014      2013  

Dollar Term Loan

   $ 2,165.5       $ 2,282.8   

Euro Term Loan

     481.0         547.7   

Dollar Senior Notes

     750.0         750.0   

Euro Senior Notes

     305.3         344.9   

Short-term borrowings

     12.2         18.2   

Other borrowings

     0.7         —     

Unamortized original issue discount

     (18.3      (22.7
  

 

 

    

 

 

 
$ 3,696.4    $ 3,920.9   

Less:

Short term borrowings

$ 12.2    $ 18.2   

Current portion of long-term borrowings

  27.9      28.5   
  

 

 

    

 

 

 

Long-term debt

$ 3,656.3    $ 3,874.2   
  

 

 

    

 

 

 

Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2015.

 

Remainder of 2015

   $ 34.2   

2016

     29.7   

2017

     29.2   

2018

     28.1   

2019

     27.3   

Thereafter

     3,477.1   
  

 

 

 
$ 3,625.6   
  

 

 

 

Below is a schedule of required future repayments of all borrowings outstanding at December 31, 2014.

 

2015

$ 40.1   

2016

  27.9   

2017

  27.9   

2018

  28.6   

2019

  27.9   

Thereafter

  3,562.3   
  

 

 

 
$ 3,714.7   
  

 

 

 

On or after February 1, 2016, 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

On or after February 1, 2016, 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

     100.000

2020 and thereafter

     100.000

On or after February 1, 2016, 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

On or after February 1, 2016, 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

     100.000

2020 and thereafter

     100.000
Derivative Financial Instruments (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014

The following tables set forth the locations and amounts recognized during the three months ended March 31, 2015 and 2014 for these cash flow hedges.

 

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   

 

Derivatives in Cash Flow
Hedging

Relationships in three
months ended March 31,
2014:

   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

   $ (0.5    Interest expense, net    $ 1.6       Interest expense, net    $ 1.3   

The following table sets forth the locations and amounts recognized during the Successor years ended December 31, 2014 and 2013, respectively, for these cash flow hedges.

 

Derivatives in Cash

Flow Hedging

Relationships in 2014:

   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

   $ 4.6       Interest expense, net    $ 6.5       Interest expense, net    $ 0.3   

 

Derivatives in Cash

Flow Hedging

Relationships in 2013:

   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

   $ (5.0    Interest expense, net    $ 4.4       Interest expense, net    $ (4.3

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:

 

Derivatives Not Designated as Hedging

Instruments under ASC 815

  

Location of (Gain) Loss
Recognized in Income on

Derivatives

   Three Months Ended March 31,  
        2015         2014    

Foreign currency forward contract

   Other expense, net as a component of Exchange (gains) losses    $ (1.8   $ 1.2   

Interest rate cap

   Interest expense, net      —          1.8   
     

 

 

   

 

 

 
$ (1.8 $ 3.0   
     

 

 

   

 

 

 

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:

 

        Successor          Predecessor  

Derivatives Not Designated as
Hedging Instruments under

ASC 815

 

Location of (Gain) Loss

Recognized in Income on

Derivatives

  Year Ended
December 31,
2014
    Year Ended
December 31,
2013
         Period from
January 1, 2013
through
January 31,
2013
    Year Ended
December 31,
2012
 

Foreign currency forward contract

  Other expense, net as a component of Exchange (gains) losses   $ 1.4      $ 20.9          $ 2.0      $ 3.9   

Interest rate cap

  Interest expense, net     3.4        (0.3         —          —     
   

 

 

   

 

 

   

 

 

 

 

   

 

 

 
$ 4.8    $ 20.6      $ 2.0    $ 3.9   
   

 

 

   

 

 

       

 

 

   

 

 

 

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, 2015      December 31, 2014  

Other assets:

     

Interest rate swaps

   $ 0.8       $ 5.9   
  

 

 

    

 

 

 

Total assets

$ 0.8    $ 5.9   
  

 

 

    

 

 

 

Other liabilities:

Interest rate swaps

$ 2.5    $ 1.5   
  

 

 

    

 

 

 

Total liabilities

$ 2.5    $ 1.5   
  

 

 

    

 

 

 

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 consolidated and combined balance sheet:

 

     Successor  
     Year Ended December 31,  
       2014          2013    

Foreign currency contracts

   $ —         $ —     

Other assets:

     

Interest rate swaps

     5.9         10.5   
  

 

 

    

 

 

 

Total assets

$ 5.9    $ 10.5   
  

 

 

    

 

 

 

Other liabilities:

Interest rate swaps

$ 1.5    $ 1.2   
  

 

 

    

 

 

 

Total liabilities

$ 1.5    $ 1.2   
  

 

 

    

 

 

 

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, 2015      December 31, 2014  

Other assets:

     

Interest rate cap

   $ 0.1       $ 0.1   
  

 

 

    

 

 

 

Total assets

$ 0.1    $ 0.1   
  

 

 

    

 

 

 

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 consolidated and combined balance sheet:

 

     Successor  
     Year Ended December 31,  
      2014        2013   

Foreign currency contracts

   $ —         $ —     

Other assets:

     

Interest rate cap

     0.1         3.4   
  

 

 

    

 

 

 

Total assets

$ 0.1    $ 3.4   
  

 

 

    

 

 

 

Other liabilities:

Foreign currency contracts

$ —      $ —     
  

 

 

    

 

 

 

Total liabilities

$ —      $ —     
  

 

 

    

 

 

 
Segments (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Segment Reporting [Abstract]
 
 
Reconciliation of Revenue from Segments to Consolidated
Schedule of Segment Reporting Information, by Segment
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas
 

Our business serves four end-markets globally as follows:

 

     Three Months Ended March 31,  
         2015              2014      

Performance Coatings

     

Refinish

   $ 393.2       $ 435.2   

Industrial

     164.0         180.9   
  

 

 

    

 

 

 

Total Net sales Performance Coatings

  557.2      616.1   

Transportation Coatings

Light Vehicle

  333.2      339.6   

Commercial Vehicle

  98.8      91.7   
  

 

 

    

 

 

 

Total Net sales Transportation Coatings

  432.0      431.3   
  

 

 

    

 

 

 

Total Net sales

$ 989.2    $ 1,047.4   
  

 

 

    

 

 

 

Our business serves four end-markets globally as follows:

 

     Successor          Predecessor  
     Year Ended
December 31,
         January 1
through
January 31,
     Year Ended
December 31,
 
          2014                2013                   2013              2012      

Performance Coatings

              

Refinish

   $ 1,850.8       $ 1,670.0          $ 129.4       $ 1,759.3   

Industrial

     734.2         655.3            57.4         720.2   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total Net sales Performance Coatings

  2,585.0      2,325.3        186.8      2,479.5   

Transportation Coatings

 

Light Vehicle

  1,384.5      1,291.5        111.6      1,390.6   

Commercial Vehicle

  392.2      334.3        27.8      349.3   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total Net sales Transportation Coatings

  1,776.7      1,625.8        139.4      1,739.9   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total Net sales

$ 4,361.7    $ 3,951.1      $ 326.2    $ 4,219.4   
  

 

 

    

 

 

       

 

 

    

 

 

 
     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   

 

     Performance
Coatings
     Transportation
Coatings
     Total  

For the Three Months Ended March 31, 2014

        

Net sales(1)

   $ 616.1       $ 431.3       $ 1,047.4   

Equity in earnings in unconsolidated affiliates

     0.3         0.3         0.6   

Adjusted EBITDA(2)

     124.5         62.2         186.7   

Investment in unconsolidated affiliates

     8.0         8.4         16.4   

 

(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 (loss) 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.

 

     Successor  
     Performance
Coatings
     Transportation
Coatings
     Total  

For the Year ended December 31, 2014

        

Net sales(1)

   $ 2,585.0       $ 1,776.7       $ 4,361.7   

Equity in earnings in unconsolidated affiliates

     (1.2      (0.2      (1.4

Adjusted EBITDA(2)

     547.6         292.9         840.5   

Investment in unconsolidated affiliates

     7.2         7.1         14.3   

 

     Successor  
     Performance
Coatings
     Transportation
Coatings
     Total  

For the Year ended December 31, 2013

        

Net sales(1)

   $ 2,325.3       $ 1,625.8       $ 3,951.1   

Equity in earnings in unconsolidated affiliates

     1.8         0.3         2.1   

Adjusted EBITDA(2)

     500.2         198.8         699.0   

Investment in unconsolidated affiliates

     7.7         8.1         15.8   

 

     Predecessor  
     Performance
Coatings
     Transportation
Coatings
         Total      

January 1 through January 31, 2013

        

Net sales(1)

   $ 186.8       $ 139.4       $ 326.2   

Equity in earnings (losses) in unconsolidated affiliates

     —           (0.3      (0.3

Adjusted EBITDA(2)

     15.0         17.7         32.7   

Investment in unconsolidated affiliates

     2.0         6.7         8.7   

 

     Predecessor  
     Performance
Coatings
     Transportation
Coatings
     Total  

For the Year ended December 31, 2012

        

Net sales(1)

   $ 2,479.5       $ 1,739.9       $ 4,219.4   

Equity in earnings in unconsolidated affiliates

     —           0.6         0.6   

Adjusted EBITDA(2)

     426.0         151.6         577.6   

Investment in unconsolidated affiliates

     0.8         7.1         7.9   

 

(1) The Company has no intercompany sales.
(2) The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income (loss) 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 (loss) before income taxes follows:

 

    Three Months Ended March 31,  
        2015             2014      

Income before income taxes

  $ 47.9      $ 8.3   

Interest expense, net

    50.0        59.0   

Depreciation and amortization

    72.6        81.1   
 

 

 

   

 

 

 

EBITDA

  170.5      148.4   

Financing costs(a)

  —        3.1   

Foreign exchange remeasurement losses(b)

  8.7      0.1   

Long-term employee benefit plan adjustments(c)

  0.2      2.3   

Termination benefits and other employee related costs(d)

  3.7      3.2   

Consulting and advisory fees(e)

  3.1      13.0   

Transition-related costs(f)

  —        13.9   

Secondary offering costs(g)

  1.4      —     

Other adjustments(h)

  (2.1   2.8   

Dividends in respect of noncontrolling interest(i)

  (3.5   (0.9

Management fee expense(j)

  —        0.8   
 

 

 

   

 

 

 

Adjusted EBITDA

$ 182.0    $ 186.7   
 

 

 

   

 

 

 

 

(a) In connection with an amendment to the Senior Secured Credit Facilities in February 2014, we recognized $3.1 million of costs during the three months ended March 31, 2014.
(b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies.
(c) Eliminates the non-service cost components of long-term employee benefit costs.
(d) Represents expenses primarily related to employee termination benefits, including our initiative to improve the overall cost structure within the European region, and other employee-related costs. Termination benefits include the costs associated with our headcount initiatives associated with cost saving opportunities that were related to our transition to a standalone entity and our Axalta Way cost savings initiatives in 2015.
(e) Represents fees paid to consultants, advisors, and other third-party professional organizations for professional services rendered in conjunction with the transition from DuPont to a standalone entity during 2014. Amounts incurred for the three months ended March 31, 2015 primarily relate to our Axalta Way cost savings initiatives.
(f) Represents charges associated with the transition from DuPont to a standalone entity, including branding and marketing, information technology related costs, and facility transition costs.
(g) Represents costs associated with the secondary offering of our common shares by Carlyle that closed in April 2015 (the “Secondary Offering”).
(h) Represents costs for certain unusual or non-operational (gains) and losses, including a $5.4 million gain recognized in 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest, stock-based compensation, equity investee dividends, indemnity losses associated with the Acquisition, and loss (gain) on sale and disposal of property, plant and equipment.
(i) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned.
(j) Pursuant to Axalta’s management agreement with Carlyle Investment for management and financial advisory services and oversight provided to Axalta and its subsidiaries, Axalta was required to pay an annual management fee of $3.0 million and out-of-pocket expenses. This agreement terminated upon completion of the IPO in November 2014.
Reconciliation of Adjusted EBITDA to income (loss) before income taxes follows:

 

     Successor          Predecessor  
     Year Ended
December 31,
    August 24
through
December 31,
         January 1
through
January 31,
    Year ended
December 31,
 
         2014             2013         2012          2013     2012  

Adjusted EBITDA

   $ 840.5      $ 699.0      $ —            $ 32.7      $ 577.6   
 

Inventory step-up(a)

     —          (103.7     —              —          —     

Merger and acquisition related costs(b)

     —          (28.1     (29.0         —          —     

Financing fees(c)

     (6.1     (25.0     —              —          —     

Foreign exchange remeasurement losses(d)

     (81.2     (48.9     —              (4.5     (17.7

Long-term employee benefit plan adjustments(e)

     0.6        (9.5     —              (2.3     (36.9

Termination benefits and other employee related costs(f)

     (18.4     (147.5     —              (0.3     (8.6

Consulting and advisory fees(g)

     (36.3     (54.7     —              —          —     

Transition-related costs(h)

     (101.8     (29.3     —              —          —     

IPO-related costs(i)

     (22.3     —          —              —          —     

Other adjustments(j)

     (10.8     (2.3     —              (0.1     (12.6

Dividends in respect of noncontrolling interest(k)

     2.2        5.2        —              —          1.9   

Management fee expense(l)

     (3.2     (3.1     —              —          —     
  

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

EBITDA

  563.2      252.1      (29.0     25.5      503.7   

Interest expense, net

  217.7      215.1      —          —        —     

Depreciation and amortization

  308.7      300.7      —          9.9      110.7   
  

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Income before income taxes

$ 36.8    $ (263.7 $ (29.0   $ 15.6    $ 393.0   
  

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

 

(a) During the Successor year ended December 31, 2013, we recorded a non-cash fair value adjustment associated with our acquisition accounting for inventories. These amounts increased cost of goods sold by $103.7 million.
(b) In connection with the Acquisition, we incurred $28.1 million and $29.0 million of merger and acquisition costs during the Successor years ended December 31, 2013 and December 31, 2012, respectively. These costs consisted primarily of investment banking, legal and other professional advisory services costs.
(c) On August 30, 2012, we signed a debt commitment letter, which included the Bridge Facility. Upon the issuance of the Senior Notes and the entry into the Senior Secured Credit Facilities, the commitments under the Bridge Facility terminated. Commitment fees related to the Bridge Facility of $21.0 million and associated fees of $4.0 million were expensed upon the payment and termination of the Bridge Facility. In connection with the amendment to the Senior Secured Credit Facilities in February 2014, we recognized $3.1 million of costs during the Successor year ended December 31, 2014. In addition to the credit facility amendment, we also incurred a $3.0 million loss on extinguishment of debt recognized during the Successor year ended December 31, 2014, which resulted directly from the pro-rata write off of unamortized deferred financing costs and original issue discounts associated with the pay-down of $100.0 million of principal on the New Dollar Term Loan (discussed further at Note 22 to the consolidated and combined financial statements.
(d) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, including a $19.4 million loss related to the acquisition date settlement of a foreign currency contract used to hedge the variability of Euro-based financing.
(e) For the Successor years ended December 31, 2014 and 2013, eliminates the non-service cost components of employee benefit costs. Additionally, we deducted a pension curtailment gain of $7.3 million recorded during the Successor year ended December 31, 2014. For the Predecessor period January 1, 2013 through January 31, 2013 and the Predecessor year ended December 31, 2012 eliminates (1) all U.S. pension and other long-term employee benefit costs that were not assumed as part of the Acquisition and (2) the non-service cost component of the pension and other long-term employee benefit costs for the foreign pension plans that were assumed as part of the Acquisition.
(f) Represents expenses primarily related to employee termination benefits, including our initiative to improve the overall cost structure within the European region, and other employee-related costs. Termination benefits include the costs associated with our headcount initiatives for establishment of new roles and elimination of old roles and other costs associated with cost saving opportunities that were related to our transition to a standalone entity.
(g) Represents fees paid to consultants, advisors, and other third-party professional organizations for professional services rendered in conjunction with the transition from DuPont to a standalone entity.
(h) Represents charges associated with the transition from DuPont to a standalone entity, including branding and marketing, information technology related costs, and facility transition costs.
(i) Represents costs associated with the IPO, including a $13.4 million pre-tax charge associated with the termination of the management agreement with Carlyle Investment Management, L.L.C., an affiliate of Carlyle, upon the completion of the IPO.
(j) Represent costs for certain unusual or non-operational losses and the non-cash impact of natural gas and currency hedge losses allocated to DPC by DuPont, stock-based compensation, asset impairments, equity investee dividends, indemnity income associated with the Transaction, and loss (gain) on sale and disposal of property, plant and equipment.
(k) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned.
(l) Pursuant to Axalta’s management agreement with Carlyle Investment Management, L.L.C., for management and financial advisory services and oversight provided to Axalta and its subsidiaries, Axalta was required to pay an annual management fee of $3.0 million and out-of-pocket expenses.

Net sales by region were as follows:

 

     Successor    

 

  Predecessor  
     Year Ended
December 31,
     Year Ended
December 31,
     Period from
August 24
through
December 31,
         Period from
January 1
through
January 31,
     Year Ended
December 31,
 
     2014      2013      2012          2013      2012  

North America

   $ 1,307.8       $ 1,165.4       $ —            $ 81.6       $ 1,238.6   

EMEA

     1,672.0         1,540.4         —              141.0         1,675.4   

Asia Pacific

     715.0         593.7         —              51.7         595.0   

Latin America

     666.9         651.6         —              51.9         710.4   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

Total(a)

$ 4,361.7    $ 3,951.1    $ —        $ 326.2    $ 4,219.4   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

Net long-lived assets by region were as follows:

 

     Successor  
     December 31,
2014
     December 31,
2013
 

North America

   $ 481.4       $ 483.8   

EMEA

     542.0         623.5   

Asia Pacific

     234.3         218.1   

Latin America

     256.4         297.2   
  

 

 

    

 

 

 

Total(b)

$ 1,514.1    $ 1,622.6   
  

 

 

    

 

 

 

 

(a) Net Sales are attributed to countries based on location of the customer. Sales to external customers in China represented approximately 11% and 10% of the total for the Successor years ended December 31, 2014 and 2013, respectively, as well as 11% for the Predecessor period ended January 31, 2013 and 8% in the Predecessor year ended December 31, 2012. Sales to external customers in Germany represented approximately 10% and 10% of the total for the Successor years ended December 31, 2014 and 2013, respectively, as well as 11% for the Predecessor period ended January 31, 2013 and 16% in the Predecessor year ended December 31, 2012. Canada, which is included in the North America region, represents approximately 3% of total sales in all periods.
(b) Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $302.8 million and $348.1 million in the years ended December 31, 2014 and 2013, respectively. China long-lived assets amounted to $189.4 million and $167.5 million in the years ended December 31, 2014 and 2013, respectively.
Shareholders' Equity (Tables)
Schedule of Stockholders Equity

The following tables present the change in total shareholders’ equity for the three months ended March 31, 2015 and 2014, respectively.

 

     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 interests of acquired subsidiaries

     —           4.3         4.3   

Dividends declared to noncontrolling interests

     —           (3.5      (3.5
  

 

 

    

 

 

    

 

 

 

Balance March 31, 2015

$ 978.9    $ 69.3    $ 1,048.2   
  

 

 

    

 

 

    

 

 

 

 

     Total Axalta      Noncontrolling
Interests
     Total  

Balance January 1, 2014

   $ 1,142.9       $ 68.9       $ 1,211.8   

Net income (loss)

     (4.3      0.6         (3.7

Other comprehensive (loss), net of tax

     (3.0      —           (3.0

Recognition of stock-based compensation

     1.8         —           1.8   

Dividends declared to noncontrolling interests

     —           (0.9      (0.9
  

 

 

    

 

 

    

 

 

 

Balance March 31, 2014

$ 1,137.4    $ 68.6    $ 1,206.0   
  

 

 

    

 

 

    

 

 

 
Accumulated Other Comprehensive Income (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Schedule of Accumulated Other Comprehensive Income
     Unrealized
Currency
Translation
Adjustments
    Pension and
Other
Long-term
Employee
Benefit
Adjustments
    Unrealized
Gain
(Loss) on

Securities
    Unrealized
Gain
(Losses) on

Derivatives
    Accumulated
Other
Comprehensive
Income (loss)
 

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 pension and other long-term employee benefits for the three months ended March 31, 2015 was $0.8 million. The cumulative income tax benefit related to the adjustments for pension and other 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.

 

     Unrealized
Currency
Translation
Adjustments
    Pension and
Other
Long-term
Employee
Benefit
Adjustments
    Unrealized
Loss on
Securities
    Unrealized
Gain
(Loss) on

Derivatives
    Accumulated
Other
Comprehensive
Income
 

December 31, 2013

   $ 24.3      $ 7.5      $ (0.9   $ 3.1      $ 34.0   

Current year deferrals to AOCI

     (7.5     4.5        (0.2     1.9        (1.3

Reclassifications from AOCI to Net income

     —          (0.1     —          (1.6     (1.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change

  (7.5   4.4      (0.2   0.3      (3.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

March 31, 2014

$ 16.8    $ 11.9    $ (1.1 $ 3.4    $ 31.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Schedule of Accumulated Other Comprehensive Income
     Unrealized
Currency
Translation
Adjustments
    Pension and
Other
Long-term
Employee
Benefit
Adjustments
    Unrealized
Gain
(Loss) on

Securities
    Unrealized
Gain
(Losses) on

Derivatives
    Accumulated
Other
Comprehensive
Income
 

Successor Balance, December 31, 2013

   $ 24.3      $ 7.5      $ (0.9   $ 3.1      $ 34.0   

Current year deferrals to AOCI

     (96.4     (29.7     0.7        3.6        (121.8

Reclassifications from AOCI to Net income

     —          (9.0     —          (6.5     (15.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change

  (96.4   (38.7   0.7      (2.9   (137.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Successor Balance, December 31, 2014

$ (72.1 $ (31.2 $ (0.2 $ 0.2    $ (103.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Included within reclassifications from AOCI to Net income for the Successor year ended December 31, 2014 was $7.3 million of curtailment gains related to an amendment to one of our pension plans.

The income tax related to the changes in pension and other long-term employee benefits for the year ended December 31, 2014 was $16.9 million. The cumulative income tax impact related to the adjustments for pension and other long-term employee benefits at December 31, 2014 was a benefit of $13.4 million compared to the cumulative income tax expense at December 31, 2013 of $3.5 million. The income tax related to the change in the unrealized gain on derivatives for the year ended December 31, 2014 was $1.7 million. The cumulative income tax expense related to the adjustments for unrealized gain on derivatives at December 31, 2014 and 2013 were $0.2 million and $1.9 million, respectively.

 

     Unrealized
Currency
Translation
Adjustments
     Pension and
Other
Long-term
Employee
Benefit
Adjustments
     Unrealized
Loss on
Securities
    Unrealized
Gain
(Loss) on

Derivatives
    Accumulated
Other
Comprehensive
Income
 

Successor Balance, December 31, 2012

   $ —         $ —         $ —        $ —        $ —     

Current year deferrals to AOCI

     24.3         7.5         (0.9     7.5        38.4   

Reclassifications from AOCI to Net income

     —           —           —          (4.4     (4.4
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net Change

  24.3      7.5      (0.9   3.1      34.0   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Successor Balance, December 31, 2013

$ 24.3    $ 7.5    $ (0.9 $ 3.1    $ 34.0   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

The income tax related to the changes in pension and other long-term employee benefits for the Successor year ended December 31, 2013 was $3.5 million. The cumulative income tax expense related to the adjustment for pension and other long-term employee benefits at December 31, 2013 was $3.5 million. The income tax related to the change in the unrealized gain on derivatives for the Successor year ended December 31, 2013 was $1.9 million. The cumulative income tax expense related to the adjustment for unrealized gain on derivatives at December 31, 2013 was $1.9 million.

 

     Unrealized
Currency
Translation
Adjustments
     Pension and
Other
Long-term
Employee
Benefit
Adjustments
    Unrealized
loss on
securities
     Unrealized
Gain
(Loss) on

Derivatives
     Accumulated
Other
Comprehensive
Income
 

Predecessor Balance, December 31, 2012

   $ —         $ (142.3   $ 1.4       $ —         $ (140.9

Current year deferrals to AOCI

     —           0.7        0.2         —           0.9   

Reclassifications from AOCI to Net income

     —           —          —           —           —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net Change

  —        0.7      0.2      —        0.9   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Predecessor Balance, January 31, 2013

$ —      $ (141.6 $ 1.6    $ —      $ (140.0
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
Acquisitions and Divestitures (Tables)

The following table summarizes the fair values of the net assets acquired as of the February 1, 2013 Acquisition date adjusted for measurement period adjustments:

 

     February 1, 2013
(As Initially
Reported)
     Measurement
Period
Adjustments
     February 1, 2013
(As Adjusted)
 

Cash and cash equivalents

   $ 79.7       $ —         $ 79.7   

Accounts and notes receivable—trade

     855.8         22.7         878.5   

Inventories

     673.0         3.0         676.0   

Prepaid expenses and other

     8.2         (1.3      6.9   

Property, plant and equipment

     1,707.7         (1.8      1,705.9   

Identifiable intangibles

     1,539.3         (19.0      1,520.3   

Other assets—noncurrent

     98.8         19.1         117.9   

Accounts payable

     (409.1      (6.9      (416.0

Other accrued liabilities

     (232.0      7.5         (224.5

Other liabilities

     (331.1      (35.3      (366.4

Deferred income taxes

     (312.9      223.2         (89.7

Noncontrolling interests

     (66.7      —           (66.7
  

 

 

    

 

 

    

 

 

 

Net assets acquired before goodwill on acquisition

  3,610.7      211.2      3,821.9   

Goodwill on acquisition

  1,315.2      (229.8   1,085.4   
  

 

 

    

 

 

    

 

 

 

Net assets acquired

$ 4,925.9    $ (18.6 $ 4,907.3   
  

 

 

    

 

 

    

 

 

 

The following unaudited supplemental pro forma information presents the financial results as if the acquisition of DPC had occurred at January 1, 2012. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been made at January 1, 2012, nor is it indicative of any future results.

 

     Year Ended December 31,  

(in millions, except per share data)

   2013      2012  

Net sales

   $ 4,277.3       $ 4,219.4   

Net loss

   $ (87.1    $ (270.1

Net loss attributable to controlling interests

   $ (93.7    $ (274.6

Earnings per share (Basic and Diluted)

   $ (0.41    $ —     
Relationship with DuPont (Tables)

The allocated leveraged functional service expenses and general corporate expenses included in cost of goods sold, selling, general, and administrative expenses and research and development expenses in the Predecessor combined statement of operations were as follows:

 

     Predecessor  
     Period from
January 1,
2013 through

January 31,
2013
     Year Ended
December 31,
2012
 

Cost of goods sold

   $ 14.2       $ 224.7   

Selling, general, and administrative expenses

     1.4         21.6   

Research and development expenses

     0.1         2.2   
  

 

 

    

 

 

 

Total

$ 15.7    $ 248.5   
  

 

 

    

 

 

 

Allocated leveraged functional service expenses and general corporate expenses are recorded in the Predecessor combined statement of operations as follows:

 

     Predecessor  
     Period from
January 1,
2013 through
January 31,
2013
     Year Ended
December 31,
2012
 

Leveraged functional services

   $ 14.2       $ 226.4   

General corporate expenses

     1.5         22.1   
  

 

 

    

 

 

 

Total

$ 15.7    $ 248.5   
  

 

 

    

 

 

 

Purchases include the following amounts:

 

    Predecessor  
    Period from
January 1,
2013 through
January 31,
2013
    Year Ended
December 31,
2012
 

DPC purchases of products from other DuPont businesses

  $ 7.9      $ 91.7   
Commitments and Contingencies (Tables)
Schedule of Future Minimum Rental Payments for Operating Leases

At December 31, 2014, future minimum payments under non-cancelable operating leases were as follows over each of the next five years and thereafter:

 

     Operating
Leases
 

2015

   $ 50.6   

2016

     35.5   

2017

     27.6   

2018

     24.5   

2019

     22.7   

Thereafter

     47.7   
  

 

 

 

Total minimum payments

$ 208.6   
  

 

 

 
Stock-based Compensation (Tables)

Principal weighted average assumptions used in applying the Black-Scholes model were as follows:

 

     2014 Grants     2013 Grants  

Expected Term

     7.81 years        7.81 years   

Volatility

     28.28     28.61

Dividend Yield

     —          —     

Discount Rate

     2.21     2.13

A summary of stock option award activity as of December 31, 2014 and changes during the year then ended, is presented below:

 

     Awards
(millions)
     Weighted-
Average
Exercise
Price
     Aggregate
Intrinsic
Value
(millions)
     Weighted
Average
Remaining
Contractual
Life (years)
 

Outstanding at January 1, 2014

     16.2       $ 9.32         

Granted

     1.6       $ 9.62         

Exercised

     (0.4    $ 8.03         

Forfeited

     (0.3    $ 9.32         
  

 

 

          

Outstanding at December 31, 2014

  17.1    $ 9.38   
  

 

 

          

Vested and expected to vest at December 31, 2014

  17.1    $ 9.38    $ 284.5      8.58   

Exercisable at December 31, 2014

  2.9    $ 9.49    $ 47.6      8.44   
Other Assets (Tables)
Schedule of Other Assets
     Successor  
     Year Ended
December 31,
 
     2014      2013  

Available for sale securities

   $ 4.5       $ 4.9   

Deferred income taxes—non-current

     250.0         271.9   

Other

     219.2         218.3   
  

 

 

    

 

 

 

Total

$ 473.7    $ 495.1   
  

 

 

    

 

 

 
Accounts Payable (Tables)
Schedule of Accounts Payable
     Successor  
     Year Ended
December 31,
 
         2014              2013      

Trade payables

   $ 463.6       $ 428.8   

Non-income taxes

     21.4         40.5   

Other

     9.5         9.2   
  

 

 

    

 

 

 

Total

$ 494.5    $ 478.5   
  

 

 

    

 

 

 
Other Accrued Liabilities (Tables)
Schedule of Accounts Payable
     Successor  
     Year Ended
December 31,
 
       2014            2013      

Compensation and other employee-related costs

   $ 153.0       $ 168.0   

Current portion of long-term employee benefit plans

     12.4         13.3   

Restructuring

     48.5         98.4   

Discounts, rebates, and warranties

     68.6         65.0   

Income taxes payable

     20.8         25.1   

Derivative liabilities

     1.5         1.2   

Other

     100.0         101.7   
  

 

 

    

 

 

 

Total

$ 404.8    $ 472.7   
  

 

 

    

 

 

 
Quarterly Financial Information (Unaudited) (Tables)
Schedule of Quarterly Financial Information

The following is a summary of the quarterly results of operations for the Successor years ended December 31, 2014 and 2013, respectively (in millions, except per share data):

 

2014

   March 31     June 30(b)      September 30(b)     December 31(c)     Full Year  

Total revenue

   $ 1,054.4      $ 1,134.3       $ 1,115.8      $ 1,087.0      $ 4,391.5   

Cost of goods sold

     703.5        742.5         728.1        723.1        2,897.2   

Net income (loss)

     (3.7     55.8         (18.3     0.9        34.7   

Net income (loss) attributable to controlling interests

     (4.3     53.8         (19.9     (2.2     27.4   

Basic net income (loss) per share

     (0.02     0.23         (0.09     (0.01     0.12   

Diluted net income (loss) per share

     (0.02     0.23         (0.09     (0.01     0.12   

2013

   March 31(a)     June 30(a)     September 30      December 31     Full Year  

Total revenue

   $ 675.1      $ 1,122.2      $ 1,082.8       $ 1,106.7      $ 3,986.8   

Cost of goods sold

     539.1        788.5        739.1         706.1        2,772.8   

Net income (loss)

     (156.5     (21.8     6.4         (47.0     (218.9

Net income (loss) attributable to controlling interests

     (157.8     (22.8     5.0         (49.3     (224.9

Basic net income (loss) per share

     (0.67     (0.10     0.02         (0.22     (0.97

Diluted net income (loss) per share

     (0.67     (0.10     0.02         (0.22     (0.97

 

(a) The Company recorded $72.6 million and $31.1 million of non-cash inventory adjustments associated with the fair value adjustment associated with our acquisition during the three months ended March 31, 2013 and June 30, 2013, respectively.
(b) The Company recorded gains of $7.7 million and $7.3 million related to amendments to benefit plans during the three months ended June 30, 2014 and September 30, 2014, respectively.
(c) During the three-months ended December 31, 2014, the Company recorded a $13.4 million pre-tax charge associated with the termination of the management agreement with Carlyle Investment Management, L.L.C., upon the completion of the IPO and a cumulative net benefit of $3.8 million ($0.4 million for the full year) associated with the correction of an error originating in prior periods. The Company concluded the error was not material to the current or previously reported periods.
Basis of Presentation of the Condensed Consolidated Financial Statements Basis of Presentation of the Condensed Consolidated Financial Statements (Detail) (IPO [Member], Successor [Member], Common Stock [Member], USD $)
0 Months Ended
Nov. 14, 2014
Nov. 11, 2014
Nov. 14, 2014
Nov. 11, 2014
IPO [Member] |
Successor [Member] |
Common Stock [Member]
 
 
 
 
Subsidiary, Sale of Stock [Line Items]
 
 
 
 
Number of shares issued in transaction
50,000,000 
57,500,000 
 
 
Sale of stock, price per share (dollars per share)
 
 
$ 19.50 
$ 19.50 
Recent Accounting Guidance (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
 
Decrease in total assets from early adoption
$ (5,898.4)
$ (6,252.8)
$ (6,737.1)
Decrease in total liabilities from early adoption
(4,850.2)
(5,140.8)
(5,525.3)
New Accounting Pronouncement, Early Adoption, Effect [Member]
 
 
 
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
 
Decrease in total assets from early adoption
86.8 
91.0 
 
Decrease in total liabilities from early adoption
$ 86.8 
$ 91.0 
 
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Dec. 31, 2011
Predecessor [Member]
Mar. 31, 2015
Performance Coatings [Member]
Successor [Member]
Dec. 31, 2014
Performance Coatings [Member]
Successor [Member]
Dec. 31, 2013
Performance Coatings [Member]
Successor [Member]
Dec. 31, 2013
Performance Coatings [Member]
Predecessor [Member]
Dec. 31, 2012
Performance Coatings [Member]
Predecessor [Member]
Dec. 31, 2011
Performance Coatings [Member]
Predecessor [Member]
Mar. 31, 2015
Transportation Coatings [Member]
Successor [Member]
Dec. 31, 2014
Transportation Coatings [Member]
Successor [Member]
Dec. 31, 2013
Transportation Coatings [Member]
Successor [Member]
Dec. 31, 2013
Transportation Coatings [Member]
Predecessor [Member]
Dec. 31, 2012
Transportation Coatings [Member]
Predecessor [Member]
Dec. 31, 2011
Transportation Coatings [Member]
Predecessor [Member]
Goodwill [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, beginning balance
$ 1,001.1 
$ 1,113.6 
 
$ 588.8 
$ 588.8 
$ 588.8 
$ 933.6 
$ 1,038.8 
 
$ 517.9 
$ 517.9 
$ 517.9 
$ 67.5 
$ 74.8 
 
$ 70.9 
$ 70.9 
$ 70.9 
Purchase accounting adjustments
 
6.1 
 
 
 
 
 
5.7 
 
 
 
 
 
0.4 
 
 
 
 
Goodwill resulting from Acquisition
12.5 
 
1,085.4 
 
 
 
12.5 
 
1,012.5 
 
 
 
 
72.9 
 
 
 
Divestitures
 
(4.7)
 
 
 
 
 
(4.7)
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
(96.8)
(113.9)
28.2 
 
 
 
(90.3)
(106.2)
26.3 
 
 
 
(6.5)
(7.7)
1.9 
 
 
 
Goodwill, ending balance
$ 916.8 
$ 1,001.1 
$ 1,113.6 
$ 588.8 
$ 588.8 
$ 588.8 
$ 855.8 
$ 933.6 
$ 1,038.8 
$ 517.9 
$ 517.9 
$ 517.9 
$ 61.0 
$ 67.5 
$ 74.8 
$ 70.9 
$ 70.9 
$ 70.9 
Goodwill and Identifiable Intangible Assets - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Mar. 31, 2015
Successor [Member]
Equity Method Investee [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Jan. 31, 2013
Predecessor [Member]
Other Intangible Assets [Member]
Dec. 31, 2012
Predecessor [Member]
Other Intangible Assets [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
 
Additional interest purchased
 
 
 
 
 
25.00% 
 
 
 
 
Amortization of acquired intangibles
$ 20.0 
$ 21.1 
$ 0 
$ 83.8 
$ 79.9 
 
$ 0 
$ 0 
$ 2.6 
$ 25.7 
Purchase accounting adjustments
 
 
 
6.1 
 
 
 
 
 
 
Goodwill and intangible asset impairment
 
 
 
$ 0.1 
$ 3.2 
 
 
 
 
 
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Gross Carrying Amount
$ 1,416.9 
$ 1,453.9 
$ 1,514.7 
Accumulated Amortization
(170.1)
(153.9)
(75.1)
Net Book Value, definite-lived
1,246.8 
1,300.0 
1,439.6 
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 
284.4 
Technology-Based Intangible Assets [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Gross Carrying Amount
411.8 
411.8 
425.2 
Accumulated Amortization
(86.5)
(76.3)
(37.3)
Net Book Value, definite-lived
325.3 
335.5 
387.9 
Weighted average amortization periods (years)
10 years 
10 years 
10 years 
Trademarks [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Gross Carrying Amount
41.9 
41.8 
41.7 
Accumulated Amortization
(6.2)
(5.5)
(2.6)
Net Book Value, definite-lived
35.7 
36.3 
39.1 
Weighted average amortization periods (years)
14 years 9 months 18 days 
14 years 9 months 18 days 
14 years 9 months 18 days 
Customer Relationships [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Gross Carrying Amount
676.9 
713.9 
761.9 
Accumulated Amortization
(76.5)
(71.3)
(34.9)
Net Book Value, definite-lived
600.4 
642.6 
727.0 
Weighted average amortization periods (years)
19 years 4 months 24 days 
19 years 4 months 24 days 
19 years 4 months 24 days 
Noncompete Agreements [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Gross Carrying Amount
1.9 
2.0 
1.5 
Accumulated Amortization
(0.9)
(0.8)
(0.3)
Net Book Value, definite-lived
$ 1.0 
$ 1.2 
$ 1.2 
Weighted average amortization periods (years)
4 years 7 months 6 days 
4 years 7 months 6 days 
4 years 
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Successor [Member]
 
 
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Remainder of 2015
$ 59.7 
 
2015
 
81.6 
2016
79.6 
81.6 
2017
79.2 
81.1 
2018
79.2 
81.0 
2019
$ 79.2 
$ 81.0 
Restructuring - Additional Information (Detail) (USD $)
3 Months Ended 11 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2014
Successor [Member]
Selling, General and Administrative Expenses [Member]
Dec. 31, 2013
Successor [Member]
Selling, General and Administrative Expenses [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Restructuring and Related Activities [Abstract]
 
 
 
 
 
 
 
 
 
Restructuring costs
$ 2,200,000 
$ 100,000 
$ 120,700,000 
$ 8,500,000 
$ 120,700,000 
$ 8,500,000 
$ 120,700,000 
$ 0 
 
Restructuring reserve
 
 
 
 
 
 
 
 
2,100,000 
Adjustment of restructuring accrual
 
 
 
 
 
 
 
 
$ 300,000 
Restructuring - Restructuring Reserve (Detail) (Successor [Member], USD $)
3 Months Ended 11 Months Ended 12 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
 
Beginning balance
$ 48,500,000 
$ 98,400,000 
$ 500,000 
$ 98,400,000 
 
Expense recorded
2,200,000 
100,000 
120,700,000 
8,500,000 
120,700,000 
Payments made
(14,000,000)
 
(23,700,000)
(51,600,000)
 
Foreign Currency Changes
(5,000,000)
 
900,000 
(6,800,000)
 
Ending balance
$ 31,700,000 
 
$ 98,400,000 
$ 48,500,000 
$ 98,400,000 
Commitments and Contingencies - Additional Information (Detail) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Mar. 31, 2015
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Commitments and Contingencies Disclosure [Abstract]
 
 
 
 
 
Maximum exposure, undiscounted
$ 2,200,000 
$ 1,600,000 
$ 2,100,000 
 
 
Accrued in period
 
 
Product warranty liability
500,000 
600,000 
 
 
 
Rent expense, net
$ 61,600,000 
$ 50,000,000 
 
$ 4,600,000 
$ 43,600,000 
Long-term Employee Benefits - Schedule of Net Benefit Cost (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 3 Months Ended 4 Months Ended 12 Months Ended 3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Mar. 31, 2015
Successor [Member]
Pension Plan [Member]
Mar. 31, 2014
Successor [Member]
Pension Plan [Member]
Dec. 31, 2012
Successor [Member]
Pension Plan [Member]
Dec. 31, 2014
Successor [Member]
Pension Plan [Member]
Dec. 31, 2013
Successor [Member]
Pension Plan [Member]
Mar. 31, 2015
Successor [Member]
Other Postretirement Benefit Plan [Member]
Mar. 31, 2014
Successor [Member]
Other Postretirement Benefit Plan [Member]
Dec. 31, 2012
Successor [Member]
Other Postretirement Benefit Plan [Member]
Dec. 31, 2014
Successor [Member]
Other Postretirement Benefit Plan [Member]
Dec. 31, 2013
Successor [Member]
Other Postretirement Benefit Plan [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Jan. 31, 2013
Predecessor [Member]
Pension Plan [Member]
Dec. 31, 2012
Predecessor [Member]
Pension Plan [Member]
Jan. 31, 2013
Predecessor [Member]
Other Postretirement Benefit Plan [Member]
Dec. 31, 2012
Predecessor [Member]
Other Postretirement Benefit Plan [Member]
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
 
 
 
 
$ 3.1 
$ 4.6 
$ 0 
$ 15.4 
$ 17.0 
$ 0 
$ 0 
$ 0 
$ 0.1 
$ 0.2 
 
 
$ 1.6 
$ 14.8 
$ 0 
$ 0.3 
Interest cost
 
 
 
 
 
4.6 
6.0 
22.9 
21.2 
0.1 
0.1 
0.2 
 
 
1.8 
22.0 
0.5 
Expected return on plan assets
 
 
 
 
 
(3.7)
(3.7)
(14.8)
(11.9)
 
 
 
 
 
 
 
(1.9)
(18.4)
 
 
Amortization of actuarial (gain) loss, net
 
 
 
 
 
0.3 
(0.1)
(0.3)
 
 
0.1 
 
 
1.1 
5.2 
Amortization of prior service cost
 
 
 
 
 
(0.1)
 
(0.9)
(1.4)
 
 
0.2 
0.2 
Curtailment gain
 
(5.6)
 
 
 
 
 
(7.3)
 
 
 
 
 
 
 
 
 
Settlement loss
 
 
 
 
 
 
 
0.1 
 
 
 
 
 
 
 
3.9 
 
 
Net periodic benefit cost
 
 
 
 
 
4.2 
6.8 
16.0 
26.3 
(0.9)
0.1 
(1.1)
0.4 
 
 
2.6 
27.7 
1.0 
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial (gain) loss
1.2 
(5.5)
55.6 
(11.0)
 
 
60.6 
(10.6)
 
 
(4.6)
(0.7)
(1.1)
99.6 
112.7 
2.7 
Amortization of actuarial gain (loss)
 
 
 
 
 
 
 
0.3 
 
 
(0.1)
 
 
(1.1)
(5.2)
Prior service benefit
 
 
 
 
 
 
 
(4.3)
(0.4)
 
 
 
 
(0.3)
(5.9)
Amortization of prior service benefit (cost)
 
 
 
 
 
 
 
 
 
1.4 
 
 
(0.2)
(0.2)
Curtailment gain
 
 
 
 
 
 
 
7.3 
 
 
 
 
 
 
 
 
 
Settlement loss
 
 
 
 
 
 
 
(0.1)
 
 
 
 
 
 
 
(3.9)
 
 
Net translation adjustment
 
 
 
 
 
 
 
(4.9)
0.6 
 
 
0.1 
 
 
Total (gain) loss recognized in other comprehensive income
 
 
 
 
 
 
 
58.9 
(10.4)
 
 
(3.3)
(0.6)
 
 
(1.1)
103.1 
(3.4)
Total recognized in net periodic benefit cost and other comprehensive (income) loss
 
 
 
 
 
 
 
$ 0 
$ 74.9 
$ 15.9 
 
 
$ 0 
$ (4.4)
$ (0.2)
 
 
$ 1.5 
$ 130.8 
$ 0 
$ (2.4)
Long-term Employee Benefits - Additional Information (Detail) (Successor [Member], USD $)
0 Months Ended 3 Months Ended 12 Months Ended 4 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Feb. 1, 2013
Mar. 31, 2014
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Pension Plan [Member]
Dec. 31, 2014
Pension Plan [Member]
Dec. 31, 2013
Pension Plan [Member]
Dec. 31, 2014
Other Postretirement Benefit Plan [Member]
Sep. 30, 2014
Selling, General and Administrative Expenses [Member]
Pension Plan [Member]
Jun. 30, 2014
Selling, General and Administrative Expenses [Member]
Pension Plan [Member]
Dec. 31, 2014
Selling, General and Administrative Expenses [Member]
Pension Plan [Member]
Compensation and Retirement Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Recognized gain (loss) due to curtailments
 
$ 5,600,000 
 
 
$ 0 
$ 7,300,000 
$ 0 
 
$ 7,300,000 
$ 7,700,000 
$ 7,300,000 
Transfer period
180 days 
 
 
 
 
 
 
 
 
 
 
Increases in AOCI due to amendments
 
 
12,000,000 
 
 
 
 
 
 
 
 
Rate of return on plan assets to determine net cost
 
 
5.21% 
5.23% 
 
5.23% 
5.22% 
 
 
 
 
Health care cost trend rate assumed
 
 
5.00% 
 
 
 
 
 
 
 
 
Effect of 1% increase on cost components
 
 
100,000 
 
 
 
 
 
 
 
 
Effect of 1% decrease on cost components
 
 
100,000 
 
 
 
 
 
 
 
 
Effect of 1% increase on postretirement benefit obligation
 
 
 
 
 
 
 
 
 
 
Estimated future employer contribution
 
 
 
 
 
16,500,000 
 
 
 
 
Defined contribution plan, employer contribution amount
 
 
$ 35,900,000 
 
 
 
 
 
 
 
 
Stock-based Compensation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2014
Successor [Member]
July 31, 2013, Strike Price 1 and 4 [Member]
Dec. 31, 2014
Successor [Member]
July 312013 Strike Price 2 and 3 [Member]
Dec. 31, 2013
Successor [Member]
2013 Plan [Member]
Dec. 31, 2014
Successor [Member]
2014 Plan [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Mar. 31, 2015
Employee Stock Option [Member]
Successor [Member]
Dec. 31, 2014
Employee Stock Option [Member]
Successor [Member]
Dec. 31, 2013
Employee Stock Option [Member]
Successor [Member]
Dec. 31, 2014
Employee Stock Option [Member]
Successor [Member]
Minimum [Member]
Dec. 31, 2014
Employee Stock Option [Member]
Successor [Member]
Maximum [Member]
Dec. 31, 2013
Employee Stock Option [Member]
Successor [Member]
2013 Plan [Member]
Dec. 31, 2014
Employee Stock Option [Member]
Successor [Member]
2014 Plan [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
Successor [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
Successor [Member]
July 31, 2013, Strike Price 1 [Member]
Dec. 31, 2013
Stock Compensation Plan [Member]
Successor [Member]
July 31, 2013, Strike Price 1 [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
Successor [Member]
July 31, 2013, Strike Price 2 [Member]
Dec. 31, 2013
Stock Compensation Plan [Member]
Successor [Member]
July 31, 2013, Strike Price 2 [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
Successor [Member]
July 31, 2013, Strike Price 3 [Member]
Dec. 31, 2013
Stock Compensation Plan [Member]
Successor [Member]
July 31, 2013, Strike Price 3 [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
Successor [Member]
July 312013 Strike Price 4 [Member]
Mar. 31, 2015
Restricted Stock [Member]
Successor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
$ 1.8 
$ 1.8 
$ 8.0 
$ 7.4 
 
 
 
 
$ 0.1 
$ 0.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation not yet recognized
8.6 
 
 
9.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period for recognition of compensation not yet recognized
 
 
 
 
 
 
 
 
 
 
3 years 1 month 6 days 
 
3 years 4 months 24 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants in period
100,945 
 
1,558,159 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,600,000 
 
4,100,000 
 
5,700,000 
 
6,400,000 
 
 
Weighted average exercise price
$ 25.49 
 
$ 9.62 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 5.92 
$ 5.92 
$ 8.88 
$ 8.88 
$ 11.84 
$ 11.84 
$ 7.21 
 
Grant date fair value
$ 6.88 
 
$ 1.92 
$ 1.38 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration period
 
 
 
 
 
 
 
 
 
 
10 years 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
 
 
 
3 years 
 
 
4 years 4 months 24 days 
5 years 
 
 
 
 
 
 
 
 
 
 
3 years 
Grants in period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
41,430 
Weighted average grant date fair value (dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 25.49 
Tax benefit from compensation expense
 
 
2.8 
2.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares authorized
 
 
 
 
 
 
19,839,143 
11,830,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Awards granted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected term
 
 
 
 
6 years 6 months 
8 years 3 months 
 
 
 
 
 
 
 
 
 
7 years 9 months 22 days 
7 years 9 months 22 days 
 
 
 
 
 
 
 
 
 
Cash received from exercise of stock options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested in period, fair value
 
 
4.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeiture rate
 
 
 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Value of stock grants, net of forfeitures
 
 
 
 
 
 
 
 
 
$ 2.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Related Party Transactions (Detail) (Successor [Member], USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 16 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Mar. 31, 2015
Carlyle Investment Management Llc [Member]
Dec. 31, 2014
Carlyle Investment Management Llc [Member]
Mar. 31, 2014
Carlyle Investment Management Llc [Member]
Dec. 31, 2014
Carlyle Investment Management Llc [Member]
Dec. 31, 2013
Carlyle Investment Management Llc [Member]
Dec. 31, 2013
Carlyle Investment Management Llc [Member]
One-time Fee [Member]
Dec. 31, 2013
Carlyle Investment Management Llc [Member]
Deferred Financing Costs [Member]
Dec. 31, 2013
Carlyle Investment Management Llc [Member]
Acquisition-related Costs [Member]
Mar. 31, 2014
Service King Collision Repair [Member]
Dec. 31, 2014
Service King Collision Repair [Member]
Dec. 31, 2013
Service King Collision Repair [Member]
Dec. 31, 2014
Other Related Party [Member]
Dec. 31, 2013
Other Related Party [Member]
Dec. 31, 2013
Other Related Party [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fees and commissions
 
 
 
 
 
$ 3.0 
 
 
$ 3.0 
 
$ 35.0 
$ 14.0 
$ 21.0 
 
 
 
 
$ 0.1 
$ 2.1 
Management fee expense
0.8 
3.2 
3.1 
 
0.8 
3.2 
3.1 
 
 
 
 
 
 
 
 
 
Related parties sales
 
 
 
 
 
 
 
 
 
 
 
 
 
2.0 
4.0 
2.0 
 
 
 
Pre tax charge related to management agreement
 
 
 
 
 
 
13.4 
 
13.4 
 
 
 
 
 
 
 
 
 
 
Stock issued during period, shares, acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
352,143 
 
 
Stock issued during period, value, acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.5 
 
 
Other Expense, Net - Schedule of Other Non-operating Income (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Other Income Expense [Line Items]
 
 
 
 
 
 
 
Exchange losses, net
$ 8.7 
$ 0.1 
$ 0 
$ 81.2 
$ 48.9 
$ 4.5 
$ 17.7 
Management fees and expenses
0.8 
16.6 
3.1 
Other
(4.8)
3.6 
17.2 
(3.5)
0.5 
(1.4)
Total
$ 3.9 
$ 4.5 
$ 0 
$ 115.0 
$ 48.5 
$ 5.0 
$ 16.3 
Other Expense, Net - Additional Information (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2013
Mar. 31, 2015
Equity Method Investee [Member]
Dec. 31, 2014
Venezuelan Subsidiary [Member]
Mar. 31, 2015
Venezuelan Subsidiary [Member]
Other Income Expense [Line Items]
 
 
 
 
 
Asset, reporting currency denominated, value
 
 
 
$ 150.9 
$ 13.7 
Asset, reporting currency-denominated, non-monetary value
 
 
 
 
155.7 
Additional interest purchased
 
 
25.00% 
 
 
Business combination, consideration transferred
 
 
4.3 
 
 
Equity method investments, remeasurement gain
 
 
5.4 
 
 
Goodwill, acquired during period
12.5 
1,085.4 
12.5 
 
 
Foreign currency transaction gain (loss), realized
 
 
 
17.0 
 
Liability, reporting currency denominated, value
 
 
 
$ 9.1 
 
Income Taxes (Detail) (Successor [Member])
3 Months Ended 4 Months Ended 12 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Effective income tax rate, percent
2.50% 
144.60% 
0.00% 
5.70% 
17.00% 
Federal statutory income tax rate, percent
35.00% 
 
35.00% 
35.00% 
35.00% 
Earnings Per Common Share - Schedule of Earnings Per Share, Basic and Diluted (Detail) (Successor [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended 4 Months Ended 12 Months Ended
Feb. 1, 2013
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) to common shareholders
 
$ 45.1 
$ (2.2)
$ (19.9)
$ 53.8 
$ (4.3)
$ (49.3)
$ 5.0 
$ (22.8)
$ (157.8)
$ (29.0)
$ 27.4 
$ (224.9)
Basic and diluted weighted average shares outstanding
 
229.8 
 
 
 
229.1 
 
 
 
 
229.3 
228.3 
Diluted weighted average shares outstanding
 
237.0 
 
 
 
229.1 
 
 
 
 
230.3 
228.3 
Earnings per Common Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic net income (loss) per share
 
$ 0.20 
$ (0.01)
$ (0.09)
$ 0.23 
$ (0.02)
$ (0.22)
$ 0.02 
$ (0.10)
$ (0.67)
$ 0.00 
$ 0.12 
$ (0.97)
Diluted net income (loss) per share
 
$ 0.19 
$ (0.01)
$ (0.09)
$ 0.23 
$ (0.02)
$ (0.22)
$ 0.02 
$ (0.10)
$ (0.67)
$ 0.00 
$ 0.12 
$ (0.97)
Pre-Acquisition net loss attributable to Axalta
 
 
 
 
 
 
 
 
 
 
(29.0)
(3.9)
Net income (loss) to common shareholders
 
 
 
 
 
 
 
 
 
 
27.4 
(221.0)
Consideration transferred, equity interests issued and issuable
$ 1,350.0 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Common Share - Additional Information (Detail) (Successor [Member])
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 4 Months Ended 12 Months Ended
Oct. 31, 2014
Jul. 31, 2013
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
 
 
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
Antidilutive securities excluded from computation of earnings per share (in shares)
 
 
16.2 
7.2 
16.3 
Stock split conversion ratio (in shares)
1.69 
100,000.00 
 
 
 
 
 
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
Balance Sheet Components [Line Items]
 
 
 
Accounts receivable-trade, net
$ 664.1 
$ 638.3 
$ 637.5 
Notes receivable
42.9 
45.5 
44.7 
Other
126.0 
136.6 
183.7 
Total
$ 833.0 
$ 820.4 
$ 865.9 
Accounts and Notes Receivable, Net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Balance Sheet Components [Line Items]
 
 
 
 
 
 
Allowance for doubtful accounts
$ 9.5 
 
$ 9.9 
$ 6.5 
 
 
Provision for Doubtful Accounts
$ 0.7 
$ 1.2 
$ 5.1 
$ 5.4 
$ 0.2 
$ 5.0 
Inventories - Schedule of Inventory (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
Inventory [Line Items]
 
 
 
Finished products
$ 316.3 
$ 323.7 
$ 329.3 
Semi-finished products
87.9 
81.3 
90.2 
Raw materials and supplies
137.1 
133.3 
130.7 
Inventories
$ 541.3 
$ 538.3 
$ 550.2 
Inventories - Additional Information (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
Inventory [Line Items]
 
 
 
Stores and supplies inventories
$ 20.8 
$ 20.9 
$ 21.2 
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Depreciation
$ 41.3 
$ 48.4 
$ 176.6 
$ 174.3 
$ 7.2 
$ 82.9 
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Land [Member]
Dec. 31, 2013
Land [Member]
Dec. 31, 2014
Building and Building Improvements [Member]
Dec. 31, 2013
Building and Building Improvements [Member]
Dec. 31, 2014
Building and Building Improvements [Member]
Minimum [Member]
Dec. 31, 2014
Building and Building Improvements [Member]
Maximum [Member]
Dec. 31, 2014
Machinery and Equipment [Member]
Dec. 31, 2013
Machinery and Equipment [Member]
Dec. 31, 2014
Machinery and Equipment [Member]
Minimum [Member]
Dec. 31, 2014
Machinery and Equipment [Member]
Maximum [Member]
Dec. 31, 2014
Software and Software Development Costs [Member]
Dec. 31, 2013
Software and Software Development Costs [Member]
Dec. 31, 2014
Software and Software Development Costs [Member]
Minimum [Member]
Dec. 31, 2014
Software and Software Development Costs [Member]
Maximum [Member]
Dec. 31, 2014
Property, Plant and Equipment, Other Types [Member]
Dec. 31, 2013
Property, Plant and Equipment, Other Types [Member]
Dec. 31, 2014
Property, Plant and Equipment, Other Types [Member]
Minimum [Member]
Dec. 31, 2014
Property, Plant and Equipment, Other Types [Member]
Maximum [Member]
Dec. 31, 2014
Construction in Progress [Member]
Dec. 31, 2013
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, gross
$ 1,776.3 
$ 1,858.2 
$ 1,806.2 
$ 90.5 
$ 99.9 
$ 418.4 
$ 430.7 
 
 
$ 1,060.1 
$ 1,087.0 
 
 
$ 122.1 
$ 42.4 
 
 
$ 29.1 
$ 26.3 
 
 
$ 138.0 
$ 119.9 
Accumulated depreciation
(364.6)
(344.1)
(183.6)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant, and equipment, net
$ 1,411.7 
$ 1,514.1 
$ 1,622.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Useful life of PP&E
 
 
 
 
 
 
 
5 years 
25 years 
 
 
3 years 
25 years 
 
 
5 years 
7 years 
 
 
3 years 
20 years 
 
 
Borrowings - Schedule of Debt (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
 
Short-term borrowings
$ 14.3 
$ 12.2 
$ 18.2 
Other borrowings
6.1 
0.7 
 
Unamortized original issue discount
(17.3)
(18.3)
(22.7)
Debt and Capital Lease Obligations
3,608.3 
3,696.4 
3,920.9 
Current portion of long-term borrowings
27.3 
27.9 
28.5 
Long-term borrowings
3,566.7 
3,656.3 
3,874.2 
Dollar Term Loan Due 2020 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Term loan
2,159.8 
2,165.5 
2,282.8 
Euro Term Loan Due 2020 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Term loan
425.0 
481.0 
547.7 
Dollar Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
750.0 
750.0 
750.0 
Euro Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
$ 270.4 
$ 305.3 
$ 344.9 
Borrowings - Senior Secured Credit Facilities (Detail) (Successor [Member])
0 Months Ended 3 Months Ended 4 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Feb. 3, 2014
USD ($)
Mar. 31, 2015
USD ($)
Mar. 31, 2014
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Feb. 3, 2014
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Dec. 31, 2014
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
EUR (€)
Feb. 3, 2014
New Dollar Term Loans [Member]
Mar. 31, 2015
New Dollar Term Loans [Member]
Dec. 31, 2014
New Dollar Term Loans [Member]
USD ($)
Feb. 3, 2014
New Dollar Term Loans [Member]
Eurocurrency Rate Loans [Member]
Mar. 31, 2015
New Dollar Term Loans [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
New Euro Term Loan [Member]
Mar. 31, 2015
New Euro Term Loan [Member]
Mar. 31, 2015
Senior Secured Credit Facilities [Member]
USD ($)
Mar. 31, 2014
Senior Secured Credit Facilities [Member]
USD ($)
Dec. 31, 2014
Senior Secured Credit Facilities [Member]
USD ($)
Dec. 31, 2013
Senior Secured Credit Facilities [Member]
USD ($)
Feb. 3, 2014
Senior Secured Credit Facilities [Member]
USD ($)
Feb. 3, 2014
Revolving Credit Facility [Member]
Mar. 31, 2015
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2014
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2013
Revolving Credit Facility [Member]
USD ($)
Feb. 3, 2014
Interest Rate Floor [Member]
Feb. 3, 2014
Interest Rate Floor [Member]
New Dollar Term Loans [Member]
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]
Senior Secured Credit Facilities [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
Interest Rate Floor [Member]
Prior to Amendment [Member]
Dollar Term Loan Due 2020 [Member]
Feb. 3, 2014
Interest Rate Floor [Member]
Prior to Amendment [Member]
Dollar Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
Interest Rate Floor [Member]
Prior to Amendment [Member]
Euro Term Loan Due 2020 [Member]
Feb. 3, 2014
Interest Rate Floor [Member]
Prior to Amendment [Member]
Euro Term Loan Due 2020 [Member]
Feb. 3, 2014
Base Rate [Member]
Dollar Term Loan Due 2020 [Member]
Feb. 3, 2014
Base Rate [Member]
New Dollar Term Loans [Member]
Mar. 31, 2015
Base Rate [Member]
New Euro Term Loan [Member]
Feb. 3, 2014
Base Rate [Member]
Senior Secured Credit Facilities [Member]
Feb. 3, 2014
Base Rate [Member]
Prior to Amendment [Member]
Dollar Term Loan Due 2020 [Member]
Feb. 3, 2014
Prime Rate [Member]
Adjusted Euro Currency Rate [Member]
Feb. 3, 2014
Prime Rate [Member]
Senior Secured Credit Facilities [Member]
Adjusted Euro Currency Rate [Member]
Feb. 3, 2014
Prime Rate [Member]
Senior Secured Credit Facilities [Member]
Adjusted Euro Currency Rate [Member]
Feb. 3, 2014
Eurocurrency Rate Loans [Member]
New Dollar Term 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
 
 
 
 
 
 
 
 
 
 
 
 
 
2.75% 
 
3.00% 
 
3.25% 
3.00% 
 
 
 
 
 
 
 
 
 
 
1.00% 
3.50% 
 
1.00% 
3.50% 
1.25% 
2.50% 
 
0.50% 
2.00% 
 
0.50% 
0.50% 
 
2.00% 
 
3.00% 
Debt instrument covenant maximum consolidated leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
4.5 
 
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument basis spread reduced on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
3.25% 
 
 
3.25% 
 
 
 
 
 
 
 
0.25% 
 
 
2.25% 
 
2.25% 
 
Debt instrument, maturity date
 
 
 
 
 
 
 
Feb. 01, 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 01, 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument periodic payment principal percentage
 
 
 
 
 
 
 
1.00% 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, effective percentage rate range, minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.00% 
 
 
 
 
 
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13,300,000 
11,700,000 
92,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized original issue discount
 
17,300,000 
 
 
18,300,000 
22,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of financing costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,200,000 
3,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of debt discount (premium)
 
 
 
 
 
 
 
 
800,000 
 
 
 
 
 
 
 
 
 
 
800,000 
900,000 
3,600,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum amount outstanding during period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding, amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21,300,000 
15,500,000 
20,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
378,700,000 
384,500,000 
379,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of debt
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains (losses) on extinguishment of debt
 
(3,100,000)
(6,100,000)
 
 
(3,000,000)
 
 
 
 
 
(3,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Write off of deferred debt issuance cost
 
 
 
 
 
 
 
 
$ 2,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings - Senior Notes (Detail) (Successor [Member])
0 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended
Feb. 1, 2013
Dollar Senior Notes [Member]
USD ($)
Mar. 31, 2015
Dollar Senior Notes [Member]
USD ($)
Dec. 31, 2014
Dollar Senior Notes [Member]
USD ($)
Dec. 31, 2013
Dollar Senior Notes [Member]
USD ($)
Feb. 1, 2013
Dollar Senior Notes [Member]
Feb. 1, 2013
Dollar Senior Notes [Member]
Any Time Prior to February 1, 2016 [Member]
Feb. 1, 2013
7.375% Senior Unsecured Notes Due 2021 [Member]
Feb. 1, 2013
7.375% Senior Unsecured Notes Due 2021 [Member]
USD ($)
Feb. 1, 2013
5.750% Senior Secured Notes Due 2021 [Member]
EUR (€)
Feb. 1, 2013
Senior Notes [Member]
USD ($)
Mar. 31, 2015
Senior Notes [Member]
USD ($)
Mar. 31, 2014
Senior Notes [Member]
USD ($)
Dec. 31, 2014
Senior Notes [Member]
USD ($)
Dec. 31, 2013
Senior Notes [Member]
USD ($)
Feb. 1, 2013
Euro Senior Notes [Member]
USD ($)
Mar. 31, 2015
Euro Senior Notes [Member]
USD ($)
Dec. 31, 2014
Euro Senior Notes [Member]
USD ($)
Dec. 31, 2013
Euro Senior Notes [Member]
USD ($)
Feb. 1, 2013
Euro Senior Notes [Member]
Feb. 1, 2013
Euro Senior Notes [Member]
Any Time Prior to February 1, 2016 [Member]
Feb. 1, 2013
Euro Senior Notes [Member]
Debt Instrument Redemption Period [Member]
Feb. 1, 2013
Euro Senior Notes [Member]
12 Month Period Prior to February 1, 2016 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
$ 750,000,000 
€ 250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, stated percentage
 
 
 
 
7.375% 
 
 
7.375% 
5.75% 
 
 
 
 
 
 
 
 
 
5.75% 
 
 
 
Debt instrument maturity year
 
 
 
 
 
 
2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance cost
22,900,000 
 
 
 
 
 
 
 
 
33,100,000 
 
 
 
 
10,200,000 
 
 
 
 
 
 
 
Unamortized debt issuance expense
 
16,900,000 
17,600,000 
20,400,000 
 
 
 
 
 
 
24,300,000 
 
25,300,000 
29,400,000 
 
7,400,000 
7,700,000 
9,000,000 
 
 
 
 
Amortization of financing costs
 
 
 
 
 
 
 
 
 
 
$ 1,000,000 
$ 1,000,000 
$ 4,100,000 
$ 3,700,000 
 
 
 
 
 
 
 
 
Debt instrument, maturity date
May 01, 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 01, 2021 
 
 
 
 
 
 
 
Debt instrument, redemption price, percentage of principal amount redeemed
 
 
 
 
 
40.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
10.00% 
 
Debt instrument, redemption price, percentage
101.00% 
 
 
 
 
107.375% 
 
 
 
 
 
 
 
 
 
 
 
 
 
105.75% 
 
103.00% 
Borrowings - Debt Instrument Redemption (Detail) (Successor [Member])
0 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Feb. 1, 2013
Dollar Senior Notes [Member]
Mar. 31, 2015
2016 [Member]
Dollar Senior Notes [Member]
Dec. 31, 2014
2016 [Member]
Dollar Senior Notes [Member]
Mar. 31, 2015
2016 [Member]
Euro Senior Notes [Member]
Dec. 31, 2014
2016 [Member]
Euro Senior Notes [Member]
Mar. 31, 2015
2017 [Member]
Dollar Senior Notes [Member]
Dec. 31, 2014
2017 [Member]
Dollar Senior Notes [Member]
Mar. 31, 2015
2017 [Member]
Euro Senior Notes [Member]
Dec. 31, 2014
2017 [Member]
Euro Senior Notes [Member]
Mar. 31, 2015
2018 [Member]
Dollar Senior Notes [Member]
Dec. 31, 2014
2018 [Member]
Dollar Senior Notes [Member]
Mar. 31, 2015
2018 [Member]
Euro Senior Notes [Member]
Dec. 31, 2014
2018 [Member]
Euro Senior Notes [Member]
Mar. 31, 2015
2019 and thereafter [Member]
Dollar Senior Notes [Member]
Dec. 31, 2014
2019 and thereafter [Member]
Dollar Senior Notes [Member]
Mar. 31, 2015
2019 and thereafter [Member]
Euro Senior Notes [Member]
Dec. 31, 2014
2019 and thereafter [Member]
Euro Senior Notes [Member]
Dec. 31, 2014
Debt Instrument, Redemption, Period Five [Member]
Dollar Senior Notes [Member]
Dec. 31, 2014
Debt Instrument, Redemption, Period Five [Member]
Euro Senior Notes [Member]
Debt Instrument, Redemption [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, redemption price, percentage
101.00% 
105.531% 
105.531% 
104.313% 
104.313% 
103.688% 
103.688% 
102.875% 
102.875% 
101.844% 
101.844% 
101.438% 
101.438% 
100.00% 
100.00% 
100.00% 
100.00% 
100.00% 
100.00% 
Borrowings - Schedule of Maturities of Long-term Debt (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Successor [Member]
 
 
Debt Disclosure [Line Items]
 
 
2015
$ 34.2 
$ 40.1 
2016
29.7 
27.9 
2017
29.2 
27.9 
2018
28.1 
28.6 
2019
27.3 
27.9 
Thereafter
3,477.1 
3,562.3 
Long-term Debt
$ 3,625.6 
$ 3,714.7 
Borrowings - Reclassifications and Revisions (Detail) (Prior Period Reclassification Adjustment [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Debt Instrument [Line Items]
 
 
 
 
 
 
Net income
$ 2.5 
$ 2.8 
$ 2.0 
$ 1.4 
$ 5.1 
$ 3.0 
Determination of Effective Interest Rate Amortization [Member]
 
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
 
Net income
 
2.8 
 
 
 
 
Interest expense, debt
 
3.1 
 
 
 
 
Provision for income taxes
 
$ 0.3 
 
 
 
 
Fair Value Accounting (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Mar. 31, 2015
Successor [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Available-for-sale securities
$ 4.5 
$ 4.9 
$ 4.5 
Goodwill and intangible asset impairment
0.1 
3.2 
 
Successor [Member] |
In Process Research and Development [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill and intangible asset impairment
0.1 
3.2 
 
Successor [Member] |
Dollar Senior Notes [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
795.0 
798.8 
813.8 
Successor [Member] |
Euro Senior Notes [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
320.5 
362.1 
284.6 
Successor [Member] |
Dollar Term Loan Due 2020 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
2,100.5 
2,297.1 
2,149.0 
Successor [Member] |
Euro Term Loan Due 2020 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
478.0 
552.5 
428.2 
Predecessor [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets, fair value disclosure, nonrecurring
 
$ 0 
 
Derivative Financial Instruments - Additional Information (Detail) (Successor [Member])
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2013
USD ($)
Interest_Rate_Swaps
Dec. 31, 2013
Euro Term Loan Due 2020 [Member]
EUR (€)
Mar. 31, 2015
Interest Rate Swap [Member]
Dec. 31, 2014
Interest Rate Swap [Member]
Dec. 31, 2013
Interest Rate Swap [Member]
USD ($)
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 
Sep. 29, 2017 
 
 
Long-term debt, gross
 
300.0 
 
 
 
 
Derivative, cap interest rate
 
1.50% 
 
 
 
 
Debt instrument, unamortized premium
 
 
 
 
 
3.1 
Gain (loss) on sale of derivatives
$ 19.4 
 
 
 
 
 
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Detail) (Successor [Member], Fair Value, Inputs, Level 2 [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Designated as Hedging Instrument [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative asset
$ 0.8 
$ 5.9 
$ 10.5 
Derivative liability
2.5 
1.5 
1.2 
Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Other Assets [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative asset
 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Assets [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative asset
0.8 
5.9 
10.5 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Liabilities [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative liability
2.5 
1.5 
1.2 
Not Designated as Hedging Instrument [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative asset
0.1 
0.1 
3.4 
Derivative liability
 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Other Assets [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative asset
 
Not Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Assets [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative asset
 
0.1 
3.4 
Not Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Liabilities [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative liability
 
Not Designated as Hedging Instrument [Member] |
Interest Rate Cap [Member] |
Other Assets [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative asset
$ 0.1 
$ 0.1 
 
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Detail) (Interest Rate Contracts [Member], Successor [Member], Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion)
$ 4.8 
$ (0.5)
$ 4.6 
$ (5.0)
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 
6.5 
4.4 
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)
$ 1.2 
$ 1.3 
$ 0.3 
$ (4.3)
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Dec. 31, 2014
Other Nonoperating Income (Expense) [Member]
Successor [Member]
Foreign Exchange Contract [Member]
Dec. 31, 2013
Other Nonoperating Income (Expense) [Member]
Successor [Member]
Foreign Exchange Contract [Member]
Mar. 31, 2015
Other Nonoperating Income (Expense) [Member]
Successor [Member]
Foreign Exchange Contract [Member]
Mar. 31, 2014
Other Nonoperating Income (Expense) [Member]
Successor [Member]
Foreign Exchange Contract [Member]
Jan. 31, 2013
Other Nonoperating Income (Expense) [Member]
Predecessor [Member]
Foreign Exchange Contract [Member]
Dec. 31, 2012
Other Nonoperating Income (Expense) [Member]
Predecessor [Member]
Foreign Exchange Contract [Member]
Dec. 31, 2014
Interest Expense [Member]
Successor [Member]
Interest Rate Cap [Member]
Dec. 31, 2013
Interest Expense [Member]
Successor [Member]
Interest Rate Cap [Member]
Mar. 31, 2015
Interest Expense [Member]
Successor [Member]
Interest Rate Cap [Member]
Mar. 31, 2014
Interest Expense [Member]
Successor [Member]
Interest Rate Cap [Member]
Jan. 31, 2013
Interest Expense [Member]
Predecessor [Member]
Interest Rate Cap [Member]
Dec. 31, 2012
Interest Expense [Member]
Predecessor [Member]
Interest Rate Cap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss on non-derivative instruments, net
$ (1.8)
$ 3.0 
$ 4.8 
$ 20.6 
$ 2.0 
$ 3.9 
$ 1.4 
$ 20.9 
$ (1.8)
$ 1.2 
$ 2.0 
$ 3.9 
$ 3.4 
$ (0.3)
$ 0 
$ 1.8 
$ 0 
$ 0 
Segments - Reconciliation of Revenue from Segments to Consolidated (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Segment
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Segment
Dec. 31, 2013
Successor [Member]
Mar. 31, 2015
Successor [Member]
Performance Coatings [Member]
Mar. 31, 2014
Successor [Member]
Performance Coatings [Member]
Dec. 31, 2014
Successor [Member]
Performance Coatings [Member]
Dec. 31, 2013
Successor [Member]
Performance Coatings [Member]
Mar. 31, 2015
Successor [Member]
Performance Coatings [Member]
Refinish [Member]
Mar. 31, 2014
Successor [Member]
Performance Coatings [Member]
Refinish [Member]
Dec. 31, 2014
Successor [Member]
Performance Coatings [Member]
Refinish [Member]
Dec. 31, 2013
Successor [Member]
Performance Coatings [Member]
Refinish [Member]
Mar. 31, 2015
Successor [Member]
Performance Coatings [Member]
Industrial [Member]
Mar. 31, 2014
Successor [Member]
Performance Coatings [Member]
Industrial [Member]
Dec. 31, 2014
Successor [Member]
Performance Coatings [Member]
Industrial [Member]
Dec. 31, 2013
Successor [Member]
Performance Coatings [Member]
Industrial [Member]
Mar. 31, 2015
Successor [Member]
Transportation Coatings [Member]
Mar. 31, 2014
Successor [Member]
Transportation Coatings [Member]
Dec. 31, 2014
Successor [Member]
Transportation Coatings [Member]
Dec. 31, 2013
Successor [Member]
Transportation Coatings [Member]
Mar. 31, 2015
Successor [Member]
Transportation Coatings [Member]
Light Vehicle [Member]
Mar. 31, 2014
Successor [Member]
Transportation Coatings [Member]
Light Vehicle [Member]
Dec. 31, 2014
Successor [Member]
Transportation Coatings [Member]
Light Vehicle [Member]
Dec. 31, 2013
Successor [Member]
Transportation Coatings [Member]
Light Vehicle [Member]
Mar. 31, 2015
Successor [Member]
Transportation Coatings [Member]
Commercial Vehicle [Member]
Mar. 31, 2014
Successor [Member]
Transportation Coatings [Member]
Commercial Vehicle [Member]
Dec. 31, 2014
Successor [Member]
Transportation Coatings [Member]
Commercial Vehicle [Member]
Dec. 31, 2013
Successor [Member]
Transportation Coatings [Member]
Commercial Vehicle [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Jan. 31, 2013
Predecessor [Member]
Performance Coatings [Member]
Dec. 31, 2012
Predecessor [Member]
Performance Coatings [Member]
Jan. 31, 2013
Predecessor [Member]
Performance Coatings [Member]
Refinish [Member]
Dec. 31, 2012
Predecessor [Member]
Performance Coatings [Member]
Refinish [Member]
Jan. 31, 2013
Predecessor [Member]
Performance Coatings [Member]
Industrial [Member]
Dec. 31, 2012
Predecessor [Member]
Performance Coatings [Member]
Industrial [Member]
Jan. 31, 2013
Predecessor [Member]
Transportation Coatings [Member]
Dec. 31, 2012
Predecessor [Member]
Transportation Coatings [Member]
Jan. 31, 2013
Predecessor [Member]
Transportation Coatings [Member]
Light Vehicle [Member]
Dec. 31, 2012
Predecessor [Member]
Transportation Coatings [Member]
Light Vehicle [Member]
Jan. 31, 2013
Predecessor [Member]
Transportation Coatings [Member]
Commercial Vehicle [Member]
Dec. 31, 2012
Predecessor [Member]
Transportation Coatings [Member]
Commercial Vehicle [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of operating segments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 989.2 
$ 1,047.4 
$ 0 
$ 4,361.7 
$ 3,951.1 
$ 557.2 
$ 616.1 
$ 2,585.0 
$ 2,325.3 
$ 393.2 
$ 435.2 
$ 1,850.8 
$ 1,670.0 
$ 164.0 
$ 180.9 
$ 734.2 
$ 655.3 
$ 432.0 
$ 431.3 
$ 1,776.7 
$ 1,625.8 
$ 333.2 
$ 339.6 
$ 1,384.5 
$ 1,291.5 
$ 98.8 
$ 91.7 
$ 392.2 
$ 334.3 
$ 326.2 
$ 4,219.4 
$ 186.8 
$ 2,479.5 
$ 129.4 
$ 1,759.3 
$ 57.4 
$ 720.2 
$ 139.4 
$ 1,739.9 
$ 111.6 
$ 1,390.6 
$ 27.8 
$ 349.3 
Segments - Schedule of Segment Reporting Information, by Segment (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Mar. 31, 2015
Successor [Member]
Performance Coatings [Member]
Mar. 31, 2014
Successor [Member]
Performance Coatings [Member]
Dec. 31, 2014
Successor [Member]
Performance Coatings [Member]
Dec. 31, 2013
Successor [Member]
Performance Coatings [Member]
Mar. 31, 2015
Successor [Member]
Transportation Coatings [Member]
Mar. 31, 2014
Successor [Member]
Transportation Coatings [Member]
Dec. 31, 2014
Successor [Member]
Transportation Coatings [Member]
Dec. 31, 2013
Successor [Member]
Transportation Coatings [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Jan. 31, 2013
Predecessor [Member]
Performance Coatings [Member]
Dec. 31, 2012
Predecessor [Member]
Performance Coatings [Member]
Jan. 31, 2013
Predecessor [Member]
Transportation Coatings [Member]
Dec. 31, 2012
Predecessor [Member]
Transportation Coatings [Member]
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 989.2 
$ 1,047.4 
$ 0 
$ 4,361.7 
$ 3,951.1 
$ 557.2 
$ 616.1 
$ 2,585.0 
$ 2,325.3 
$ 432.0 
$ 431.3 
$ 1,776.7 
$ 1,625.8 
$ 326.2 
$ 4,219.4 
$ 186.8 
$ 2,479.5 
$ 139.4 
$ 1,739.9 
Equity in earnings in unconsolidated affiliates
0.4 
0.6 
 
(1.4)
2.1 
0.1 
0.3 
(1.2)
1.8 
0.3 
0.3 
(0.2)
0.3 
(0.3)
0.6 
(0.3)
0.6 
Adjusted EBITDA
182.0 
186.7 
840.5 
699.0 
107.1 
124.5 
547.6 
500.2 
74.9 
62.2 
292.9 
198.8 
32.7 
577.6 
15.0 
426.0 
17.7 
151.6 
Investment in unconsolidated affiliates
$ 10.5 
$ 16.4 
 
$ 14.3 
$ 15.8 
$ 4.0 
$ 8.0 
$ 7.2 
$ 7.7 
$ 6.5 
$ 8.4 
$ 7.1 
$ 8.1 
$ 8.7 
$ 7.9 
$ 2.0 
$ 0.8 
$ 6.7 
$ 7.1 
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Jun. 30, 2013
Successor [Member]
Mar. 31, 2013
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2013
Successor [Member]
Bridge Facility [Member]
Dec. 31, 2013
Successor [Member]
Bridge Facility [Member]
Debt Associated Fees [Member]
Mar. 31, 2015
Successor [Member]
Senior Secured Credit Facilities [Member]
Mar. 31, 2014
Successor [Member]
Senior Secured Credit Facilities [Member]
Dec. 31, 2014
Successor [Member]
Senior Secured Credit Facilities [Member]
Dec. 31, 2014
Successor [Member]
New Dollar Term Loans [Member]
Mar. 31, 2015
Successor [Member]
Carlyle Investment Management Llc [Member]
Dec. 31, 2014
Successor [Member]
Carlyle Investment Management Llc [Member]
Mar. 31, 2014
Successor [Member]
Carlyle Investment Management Llc [Member]
Dec. 31, 2014
Successor [Member]
Carlyle Investment Management Llc [Member]
Dec. 31, 2013
Successor [Member]
Carlyle Investment Management Llc [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Noncontrolling Interest [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$ 47.9 
$ 8.3 
 
 
$ (29.0)
$ 36.8 
$ (263.7)
 
 
 
 
 
 
 
 
 
 
 
$ 15.6 
$ 393.0 
 
Interest expense, net
50.0 
59.0 
 
 
217.7 
215.1 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
72.6 
81.1 
 
 
308.7 
300.7 
 
 
 
 
 
 
 
 
 
 
 
9.9 
110.7 
 
EBITDA
170.5 
148.4 
 
 
(29.0)
563.2 
252.1 
 
 
 
 
 
 
 
 
 
 
 
25.5 
503.7 
 
Debt modification costs
3.1 
 
 
6.1 
25.0 
 
 
 
 
 
 
 
 
 
 
 
 
Exchange losses, net
(8.7)
(0.1)
 
 
(81.2)
(48.9)
 
 
 
 
 
 
 
 
 
 
 
(4.5)
(17.7)
 
Long-term employee benefit plan adjustments
(0.2)
(2.3)
 
 
0.6 
(9.5)
 
 
 
 
 
 
 
 
 
 
 
(2.3)
(36.9)
 
Termination benefits and other employee related costs
3.7 
3.2 
 
 
18.4 
147.5 
 
 
 
 
 
 
 
 
 
 
 
0.3 
8.6 
 
Consulting and advisory fees
3.1 
13.0 
 
 
36.3 
54.7 
 
 
 
 
 
 
 
 
3.0 
 
 
 
Transition-related costs
13.9 
 
 
101.8 
29.3 
 
 
 
 
 
 
 
 
 
 
 
 
Secondary offering costs
1.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other adjustments
(2.1)
2.8 
 
 
10.8 
2.3 
 
 
 
 
 
 
 
 
 
 
 
0.1 
12.6 
 
Dividends in respect of noncontrolling interest
3.5 
0.9 
 
 
2.2 
5.2 
 
 
 
 
 
 
 
 
 
 
 
1.9 
Management fee expense
0.8 
 
 
3.2 
3.1 
 
 
 
 
 
 
 
0.8 
3.2 
3.1 
 
Adjusted EBITDA
182.0 
186.7 
 
 
840.5 
699.0 
 
 
 
 
 
 
 
 
 
 
 
32.7 
577.6 
 
Refinancing costs
 
 
 
 
 
 
 
 
 
 
3.1 
3.1 
 
 
 
 
 
 
 
 
 
Equity method investments, remeasurement gain
 
 
 
 
 
 
 
 
 
5.4 
 
 
 
 
 
 
 
 
 
 
 
Inventory step-up
 
 
(31.1)
(72.6)
(103.7)
 
 
 
 
 
 
 
 
 
 
 
 
Merger and acquisition related costs
 
 
 
 
(29.0)
(28.1)
 
 
 
 
 
 
 
 
 
 
 
 
Cost of Initial Public Offering
 
 
 
 
(22.3)
 
 
 
 
 
 
 
 
 
 
 
 
Bridge financing commitment fees
 
 
 
 
25.0 
21.0 
4.0 
 
 
 
 
 
 
 
 
 
 
Gains (losses) on extinguishment of debt
(3.1)
 
 
(6.1)
 
 
 
 
 
(3.0)
 
 
 
 
 
 
Repayments of debt
 
 
 
 
 
 
 
 
 
 
 
 
100.0 
 
 
 
 
 
 
 
 
Gain (loss) on sale of derivatives
 
 
 
 
 
 
19.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre tax charge related to management agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 13.4 
 
$ 13.4 
 
 
 
 
Shareholders' Equity (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Total stockholders' equity, beginning balance
$ 1,112.0 
 
 
$ 1,206.0 
$ 1,211.8 
 
 
 
$ (29.0)
 
$ 1,211.8 
$ (29.0)
Net income
46.7 
0.9 
(18.3)
55.8 
(3.7)
(47.0)
6.4 
(21.8)
(156.5)
(29.0)
34.7 
(218.9)
Other comprehensive (loss), net of tax
(112.5)
 
 
 
(3.0)
 
 
 
 
(142.0)
34.0 
Exercise of stock options
(0.6)
 
 
 
 
 
 
 
 
 
3.0 
 
Recognition of stock-based compensation
1.8 
 
 
 
1.8 
 
 
 
 
 
8.0 
7.4 
Noncontrolling interests of acquired subsidiaries
4.3 
 
 
 
 
 
 
 
 
 
(3.8)
66.7 
Dividends declared to noncontrolling interests
(3.5)
 
 
 
(0.9)
 
 
 
 
 
(2.2)
(3.8)
Total stockholders' equity, ending balance
1,048.2 
1,112.0 
 
 
1,206.0 
1,211.8 
 
 
 
(29.0)
1,112.0 
1,211.8 
Parent [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Total stockholders' equity, beginning balance
1,044.7 
 
 
 
1,142.9 
 
 
 
 
 
1,142.9 
 
Net income
45.1 
 
 
 
(4.3)
 
 
 
 
 
 
 
Other comprehensive (loss), net of tax
(112.1)
 
 
 
(3.0)
 
 
 
 
 
 
 
Exercise of stock options
(0.6)
 
 
 
 
 
 
 
 
 
 
 
Recognition of stock-based compensation
1.8 
 
 
 
1.8 
 
 
 
 
 
 
 
Noncontrolling interests of acquired subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Dividends declared to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
Total stockholders' equity, ending balance
978.9 
 
 
 
1,137.4 
 
 
 
 
 
 
 
Noncontrolling Interest [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Total stockholders' equity, beginning balance
67.3 
 
 
 
68.9 
 
 
 
 
 
68.9 
 
Net income
1.6 
 
 
 
0.6 
 
 
 
 
 
7.3 
6.0 
Other comprehensive (loss), net of tax
(0.4)
 
 
 
 
 
 
 
 
 
 
Exercise of stock options
 
 
 
 
 
 
 
 
 
 
 
Recognition of stock-based compensation
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests of acquired subsidiaries
4.3 
 
 
 
 
 
 
 
 
 
(2.0)
66.7 
Dividends declared to noncontrolling interests
(3.5)
 
 
 
(0.9)
 
 
 
 
 
(2.2)
(3.8)
Total stockholders' equity, ending balance
$ 69.3 
$ 67.3 
 
 
$ 68.6 
$ 68.9 
 
 
 
 
$ 67.3 
$ 68.9 
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Mar. 31, 2015
Unrealized Currency Translation Adjustments
Successor [Member]
Mar. 31, 2014
Unrealized Currency Translation Adjustments
Successor [Member]
Dec. 31, 2014
Unrealized Currency Translation Adjustments
Successor [Member]
Dec. 31, 2013
Unrealized Currency Translation Adjustments
Successor [Member]
Mar. 31, 2015
Accumulated Defined Benefit Plans Adjustment [Member]
Successor [Member]
Mar. 31, 2014
Accumulated Defined Benefit Plans Adjustment [Member]
Successor [Member]
Dec. 31, 2014
Accumulated Defined Benefit Plans Adjustment [Member]
Successor [Member]
Dec. 31, 2013
Accumulated Defined Benefit Plans Adjustment [Member]
Successor [Member]
Dec. 31, 2012
Accumulated Defined Benefit Plans Adjustment [Member]
Predecessor [Member]
Mar. 31, 2015
Unrealized (Gain) Loss on Securities
Successor [Member]
Mar. 31, 2014
Unrealized (Gain) Loss on Securities
Successor [Member]
Dec. 31, 2014
Unrealized (Gain) Loss on Securities
Successor [Member]
Dec. 31, 2013
Unrealized (Gain) Loss on Securities
Successor [Member]
Dec. 31, 2012
Unrealized (Gain) Loss on Securities
Predecessor [Member]
Mar. 31, 2015
Unrealized Gain (Losses) on Derivatives
Successor [Member]
Mar. 31, 2014
Unrealized Gain (Losses) on Derivatives
Successor [Member]
Dec. 31, 2014
Unrealized Gain (Losses) on Derivatives
Successor [Member]
Dec. 31, 2013
Unrealized Gain (Losses) on Derivatives
Successor [Member]
Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Member]
Successor [Member]
Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Member]
Successor [Member]
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Member]
Successor [Member]
Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Member]
Successor [Member]
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Member]
Predecessor [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance
$ (103.3)
$ 34.0 
 
$ 34.0 
 
 
 
$ (72.1)
$ 24.3 
$ 24.3 
 
$ (31.2)
$ 7.5 
$ 7.5 
 
$ (142.3)
$ (0.2)
$ (0.9)
$ (0.9)
 
$ 1.4 
$ 0.2 
$ 3.1 
$ 3.1 
 
$ (103.3)
$ 34.0 
$ 34.0 
 
$ (140.9)
Current year deferrals to AOCI
 
 
 
 
 
 
 
(109.2)
(7.5)
(96.4)
24.3 
4.5 
(29.7)
7.5 
0.7 
0.5 
(0.2)
0.7 
(0.9)
0.2 
(1.4)
1.9 
3.6 
7.5 
(110.1)
(1.3)
(121.8)
38.4 
0.9 
Reclassifications from AOCI to Net income
 
 
 
 
 
 
 
(0.4)
(0.1)
(9.0)
 
 
(1.6)
(1.6)
(6.5)
(4.4)
(2.0)
(1.7)
(15.5)
(4.4)
 
Other comprehensive income (loss), net of tax
(112.5)
(3.0)
(142.0)
34.0 
0.9 
(64.6)
(109.2)
(7.5)
(96.4)
24.3 
(0.4)
4.4 
(38.7)
7.5 
0.7 
0.5 
(0.2)
0.7 
(0.9)
0.2 
(3.0)
0.3 
(2.9)
3.1 
(112.1)
(3.0)
(137.3)
34.0 
0.9 
Accumulated other comprehensive income (loss), ending balance
$ (215.4)
 
 
$ (103.3)
$ 34.0 
 
 
$ (181.3)
$ 16.8 
$ (72.1)
$ 24.3 
$ (31.6)
$ 11.9 
$ (31.2)
$ 7.5 
$ (141.6)
$ 0.3 
$ (1.1)
$ (0.2)
$ (0.9)
$ 1.6 
$ (2.8)
$ 3.4 
$ 0.2 
$ 3.1 
$ (215.4)
$ 31.0 
$ (103.3)
$ 34.0 
$ (140.0)
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 12 Months Ended 4 Months Ended 12 Months Ended
Jan. 31, 2013
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Pension Plan [Member]
Dec. 31, 2014
Pension Plan [Member]
Dec. 31, 2013
Pension Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
Pension and other postretirement benefit plans, tax benefit
$ 0.4 
$ (0.8)
$ 1.1 
$ (16.9)
$ 3.5 
 
 
 
Cumulative pension and other postretirement benefit plans, tax (benefits) expense
76.3 
(14.1)
4.6 
(13.4)
3.5 
 
 
 
Unrealized gain (loss) on derivatives, tax
(1.8)
0.2 
1.7 
1.9 
 
 
 
Cumulative unrealized gain (loss) on derivatives, tax
(1.6)
2.1 
0.2 
1.9 
 
 
 
Recognized gain (loss) due to curtailments
 
 
5.6 
 
 
7.3 
Unrealized holding gain (loss) on securities, tax
 
 
 
 
 
 
 
Cumulative unrealized holding gain (loss) on securities, tax benefits
$ 0.9 
 
 
 
 
 
 
 
Subsequent Events - Additional Information (Detail) (Successor [Member], USD $)
0 Months Ended 0 Months Ended
Mar. 31, 2015
Dec. 31, 2013
Apr. 8, 2015
2013 Plan [Member]
Subsequent Event [Member]
Apr. 8, 2015
The Carlyle Group L.P. [Member]
Subsequent Event [Member]
Apr. 8, 2015
The Carlyle Group L.P. [Member]
Secondary Offering [Member]
Subsequent Event [Member]
Apr. 8, 2015
The Carlyle Group L.P. [Member]
Secondary Offering [Member]
Subsequent Event [Member]
Apr. 8, 2015
The Carlyle Group L.P. [Member]
Over-Allotment Option [Member]
Subsequent Event [Member]
Apr. 8, 2015
The Carlyle Group L.P. [Member]
Private Placement [Member]
Subsequent Event [Member]
Apr. 8, 2015
The Carlyle Group L.P. [Member]
Private Placement [Member]
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
Number of shares issued in transaction
 
 
 
 
40,000,000 
 
6,000,000 
20,000,000 
 
Sale of stock, price per share (dollars per share)
 
 
 
 
 
$ 28.00 
 
 
$ 28.00 
Proceeds from issuance of common stock
 
 
 
 
$ 0 
 
 
$ 0 
 
Share-based compensation expense
$ 8,600,000 
$ 9,700,000 
$ 8,000,000 
 
 
 
 
 
 
Percentage of ownership after transaction (below 50%)
 
 
 
50.00% 
 
 
 
 
 
General and Description of the Business (Detail) (Successor [Member])
0 Months Ended 0 Months Ended 0 Months Ended
Feb. 1, 2013
USD ($)
Dec. 31, 2014
Dec. 31, 2014
Axalta Coating Systems Dutch Co. Top Cooperatief U.A. [Member]
Dec. 31, 2014
Axalta Coating Systems Dutch Holdings A B.V. [Member]
Feb. 1, 2013
The Carlyle Group L.P. [Member]
USD ($)
Nov. 14, 2014
Common Stock [Member]
IPO [Member]
Nov. 11, 2014
Common Stock [Member]
IPO [Member]
Nov. 14, 2014
Common Stock [Member]
IPO [Member]
USD ($)
Nov. 11, 2014
Common Stock [Member]
IPO [Member]
USD ($)
Nov. 14, 2014
Common Stock [Member]
Over-Allotment Option [Member]
Feb. 1, 2013
Secured Debt [Member]
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 1, 2013
Secured Debt [Member]
Euro Term Loan Due 2020 [Member]
EUR (€)
Feb. 1, 2013
Secured Debt [Member]
5.750% Senior Secured Notes Due 2021 [Member]
EUR (€)
Feb. 1, 2013
Unsecured Debt [Member]
7.375% Senior Unsecured Notes Due 2021 [Member]
USD ($)
Entity Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership percentage
 
100.00% 
100.00% 
100.00% 
 
 
 
 
 
 
 
 
 
 
Consideration transferred, equity interests issued and issuable
$ 1,350,000,000 
 
 
 
$ 1,350,000,000 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
$ 2,300,000,000 
€ 400,000,000 
€ 250,000,000 
$ 750,000,000 
Debt instrument, interest rate, stated percentage
 
 
 
 
 
 
 
 
 
 
 
 
5.75% 
7.375% 
Number of shares issued in transaction
 
 
 
 
 
50,000,000 
57,500,000 
 
 
7,500,000 
 
 
 
 
Sale price per share
 
 
 
 
 
 
 
$ 19.50 
$ 19.50 
 
 
 
 
 
Summary of Significant Accounting Policies (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2012
Successor [Member]
Selling, General and Administrative Expenses [Member]
Dec. 31, 2014
Successor [Member]
Dupont Performance Coatings Business [Member]
Sep. 4, 2012
Successor [Member]
DuPont Powder Coatings Saudi Company Ltd. [Member]
Partner
Dec. 31, 2014
Minimum [Member]
Successor [Member]
Dec. 31, 2014
Minimum [Member]
Predecessor [Member]
Building and Equipment [Member]
Dec. 31, 2014
Maximum [Member]
Successor [Member]
Dec. 31, 2014
Maximum [Member]
Predecessor [Member]
Building and Equipment [Member]
Accounting Policies [Line Items]
 
 
 
 
 
 
 
Number of partners in joint venture
 
 
 
 
 
 
Loss from deconsolidation of DPC Saudi
$ 1.0 
 
 
 
 
 
 
PP&E, weighted average useful life
 
11 years 
 
 
 
 
 
Useful life of PP&E
 
 
 
 
15 years 
 
25 years 
Useful life of finite lived intangible assets
 
 
 
4 years 
 
20 years 
 
Acquisitions and Divestitures - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended 4 Months Ended 12 Months Ended 0 Months Ended 4 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2013
Successor [Member]
Performance Coatings [Member]
Dec. 31, 2013
Successor [Member]
Performance Coatings [Member]
Other Nonoperating Income (Expense) [Member]
Feb. 1, 2013
Du Pont [Member]
Scenario, Previously Reported [Member]
Feb. 1, 2013
Du Pont [Member]
Scenario, Adjustment [Member]
Feb. 1, 2013
Du Pont [Member]
Scenario, Actual [Member]
Dec. 31, 2012
Du Pont [Member]
Successor [Member]
Dec. 31, 2012
Du Pont [Member]
Successor [Member]
Dec. 31, 2013
Du Pont [Member]
Successor [Member]
Dec. 31, 2012
Du Pont [Member]
Successor [Member]
Dec. 31, 2013
Du Pont [Member]
Successor [Member]
Acquisition-related Costs [Member]
Dec. 31, 2013
Du Pont [Member]
Successor [Member]
Acquisition-related Costs, Net of Tax [Member]
Dec. 31, 2013
Du Pont [Member]
Successor [Member]
Nonrecurring Costs [Member]
Dec. 31, 2013
Du Pont [Member]
Successor [Member]
Nonrecurring Costs, Net of Tax [Member]
Dec. 31, 2013
Du Pont [Member]
Successor [Member]
Fair Value Adjustment to Inventory [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognized identifiable assets acquired, goodwill, and liabilities assumed, net
 
 
 
 
 
 
$ 4,925.9 
$ (18.6)
$ 4,907.3 
 
 
 
 
 
 
 
 
 
Date of acquisition agreement
Aug. 30, 2012 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill expected tax deductible amount
 
 
708.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merger and acquisition related expenses
 
29.0 
28.1 
 
 
 
 
 
 
29.0 
 
 
 
 
 
 
 
Debt issuance cost
 
 
 
 
 
 
 
 
 
4.6 
 
 
 
 
 
 
 
 
Cost of acquired entity transaction and debt financing costs
 
 
 
 
 
 
 
 
 
33.6 
 
 
 
 
 
 
 
 
Date of incorporation
 
 
Aug. 24, 2012 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma net loss
 
 
 
 
 
 
 
 
 
 
 
87.1 
270.1 
53.1 
43.5 
123.1 
88.6 
103.7 
Proceeds from divestiture of businesses
 
 
 
 
17.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) from disposal of discontinued operation, before income tax
 
 
 
 
 
1.2 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) on disposal of discontinued operation, net of tax
 
 
 
 
 
$ 0.7 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions and Divestitures - Fair Value of Net Assets Acquired (Detail) (Du Pont [Member], USD $)
In Millions, unless otherwise specified
Feb. 1, 2013
Scenario, Previously Reported [Member]
 
Business Acquisition [Line Items]
 
Cash and cash equivalents
$ 79.7 
Accounts and notes receivable-trade
855.8 
Inventories
673.0 
Prepaid expenses and other
8.2 
Property, plant and equipment
1,707.7 
Identifiable intangibles
1,539.3 
Other assets-noncurrent
98.8 
Accounts payable
(409.1)
Other accrued liabilities
(232.0)
Other liabilities
(331.1)
Deferred income taxes
(312.9)
Noncontrolling interests
(66.7)
Net assets acquired before goodwill on acquisition
3,610.7 
Goodwill
1,315.2 
Net assets acquired
4,925.9 
Scenario, Adjustment [Member]
 
Business Acquisition [Line Items]
 
Cash and cash equivalents
Accounts and notes receivable-trade
22.7 
Inventories
3.0 
Prepaid expenses and other
(1.3)
Property, plant and equipment
(1.8)
Identifiable intangibles
(19.0)
Other assets-noncurrent
19.1 
Accounts payable
(6.9)
Other accrued liabilities
7.5 
Other liabilities
(35.3)
Deferred income taxes
223.2 
Noncontrolling interests
Net assets acquired before goodwill on acquisition
211.2 
Goodwill
(229.8)
Net assets acquired
(18.6)
Scenario, Actual [Member]
 
Business Acquisition [Line Items]
 
Cash and cash equivalents
79.7 
Accounts and notes receivable-trade
878.5 
Inventories
676.0 
Prepaid expenses and other
6.9 
Property, plant and equipment
1,705.9 
Identifiable intangibles
1,520.3 
Other assets-noncurrent
117.9 
Accounts payable
(416.0)
Other accrued liabilities
(224.5)
Other liabilities
(366.4)
Deferred income taxes
(89.7)
Noncontrolling interests
(66.7)
Net assets acquired before goodwill on acquisition
3,821.9 
Goodwill
1,085.4 
Net assets acquired
$ 4,907.3 
Acquisitions and Divestitures - Supplemental Pro Forma Information (Detail) (Successor [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2013
Du Pont [Member]
Dec. 31, 2012
Du Pont [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,277.3 
$ 4,219.4 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
(87.1)
(270.1)
Net loss attributable to controlling interests
$ 45.1 
$ (2.2)
$ (19.9)
$ 53.8 
$ (4.3)
$ (49.3)
$ 5.0 
$ (22.8)
$ (157.8)
$ (29.0)
$ 27.4 
$ (224.9)
$ (93.7)
$ (274.6)
Earnings per share (Basic and Diluted) (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
$ (0.41)
$ 0.00 
Relationship with DuPont - Allocated Corporate Costs (Detail) (Predecessor [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 31, 2013
Dec. 31, 2012
Related Party Transaction [Line Items]
 
 
Allocated corporate cost
$ 15.7 
$ 248.5 
Leveraged functional services
14.2 
226.4 
General corporate expenses
1.5 
22.1 
Cost of Sales [Member]
 
 
Related Party Transaction [Line Items]
 
 
Allocated corporate cost
14.2 
224.7 
Selling, General and Administrative Expenses [Member]
 
 
Related Party Transaction [Line Items]
 
 
Allocated corporate cost
1.4 
21.6 
Research and Development Expense [Member]
 
 
Related Party Transaction [Line Items]
 
 
Allocated corporate cost
$ 0.1 
$ 2.2 
Relationship with DuPont - Additional Information (Detail) (Predecessor [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 31, 2013
Plant
Dec. 31, 2012
Predecessor [Member]
 
 
Related Party Transaction [Line Items]
 
 
Number of plants where manufacturing was conducted
35 
 
Number of plants shared with non-DPC operations
 
Amount credited to cost of goods sold for use by non-DPC businesses (less than $.3 million for Jan. 1, 2013 through Jan. 31, 2013)
$ 0.3 
$ 1.0 
Amount charged to cost of goods sold for use of shared assets (less than $.2 million for Jan. 1, 2013 through Jan. 31, 2013)
$ 0.2 
$ 0.4 
Relationship with DuPont - Purchases from and Sales to Other DuPont Businesses (Detail) (Dupont Performance Coatings Business [Member], Predecessor [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 31, 2013
Dec. 31, 2012
Dupont Performance Coatings Business [Member] |
Predecessor [Member]
 
 
Related Party Transaction [Line Items]
 
 
Purchases From And Sales To Other Acquisition
$ 7.9 
$ 91.7 
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Successor [Member]
 
Commitments And Contingencies [Line Items]
 
2015
$ 50.6 
2016
35.5 
2017
27.6 
2018
24.5 
2019
22.7 
Thereafter
47.7 
Total minimum payments
$ 208.6 
Long-term Employee Benefits - Schedule of Multiemployer Plans (Detail) (Predecessor [Member], Multiemployer Plans, Pension [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 31, 2013
Dec. 31, 2014
Dec. 31, 2012
DuPont Pension and Retirement Plan [Member]
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Multiemployer plan, period contributions
$ 4.2 
 
$ 40.6 
EIN Number
 
510014090 
 
Pension Number
001 
 
001 
Multiemployer Plan, Individually Insignificant Multiemployer Plans [Member]
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Multiemployer plan, period contributions
$ 0.7 
 
$ 16.7 
Long-term Employee Benefits - Schedule of Defined Benefit Plans (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Feb. 1, 2013
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Accrued pension and other long-term employee benefits
$ (272.6)
 
 
$ (306.4)
$ (313.2)
 
Pension Plan [Member]
 
 
 
 
 
 
Change in benefit obligation:
 
 
 
 
 
 
Projected benefit obligation at beginning of year
613.1 
603.0 
 
603.0 
 
Fair value of assumed obligation at Acquisition date
 
 
 
579.5 
 
Service cost
3.1 
4.6 
15.4 
17.0 
 
Interest cost
4.6 
6.0 
22.9 
21.2 
 
Participant contributions
 
 
 
1.0 
1.0 
 
Actuarial losses (gains)-net
 
 
 
85.8 
(5.8)
 
Plan curtailments and settlements
 
 
 
(16.3)
(1.4)
 
Benefits paid
 
 
 
(30.1)
(20.7)
 
Amendments
 
 
 
(4.3)
(0.4)
 
Currency translation adjustment
 
 
 
(64.3)
12.6 
 
Projected benefit obligation at end of year
 
 
613.1 
603.0 
 
Change in plan assets:
 
 
 
 
 
 
Fair value of plan assets at:
294.5 
281.3 
 
281.3 
250.7 
Actual return on plan assets
 
 
 
26.5 
16.0 
 
Employer contributions
 
 
 
40.9 
28.6 
 
Participant contributions
 
 
 
1.0 
1.0 
 
Benefits paid
 
 
 
(30.1)
(20.7)
 
Settlements
 
 
 
(2.7)
(0.6)
 
Currency translation adjustment
 
 
 
(22.4)
6.3 
 
Fair value of plan assets at:
 
 
294.5 
281.3 
250.7 
Funded status, net
 
 
 
(318.6)
(321.7)
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Net amount recognized
 
 
 
(318.6)
(321.7)
 
Other Postretirement Benefit Plan [Member]
 
 
 
 
 
 
Change in benefit obligation:
 
 
 
 
 
 
Projected benefit obligation at beginning of year
0.1 
4.6 
 
4.6 
 
Fair value of assumed obligation at Acquisition date
 
 
 
5.2 
 
Service cost
0.1 
0.2 
 
Interest cost
0.1 
0.1 
0.2 
 
Participant contributions
 
 
 
 
Actuarial losses (gains)-net
 
 
 
1.1 
(0.7)
 
Plan curtailments and settlements
 
 
 
 
Benefits paid
 
 
 
 
Amendments
 
 
 
(5.7)
 
Currency translation adjustment
 
 
 
(0.1)
(0.3)
 
Projected benefit obligation at end of year
 
 
0.1 
4.6 
 
Change in plan assets:
 
 
 
 
 
 
Fair value of plan assets at:
 
Actual return on plan assets
 
 
 
 
Employer contributions
 
 
 
 
Participant contributions
 
 
 
 
Benefits paid
 
 
 
 
Settlements
 
 
 
 
Currency translation adjustment
 
 
 
 
Fair value of plan assets at:
 
 
Funded status, net
 
 
 
(0.1)
(4.6)
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Net amount recognized
 
 
 
(0.1)
(4.6)
 
Other Assets [Member] |
Pension Plan [Member]
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Other assets
 
 
 
0.1 
0.2 
 
Other Assets [Member] |
Other Postretirement Benefit Plan [Member]
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Other assets
 
 
 
 
Other Current Liabilities [Member] |
Pension Plan [Member]
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Other accrued liabilities
 
 
 
(12.4)
(13.3)
 
Other Current Liabilities [Member] |
Other Postretirement Benefit Plan [Member]
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Other accrued liabilities
 
 
 
 
Accounts Payable and Accrued Liabilities [Member] |
Pension Plan [Member]
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Accrued pension and other long-term employee benefits
 
 
 
(306.3)
(308.6)
 
Accounts Payable and Accrued Liabilities [Member] |
Other Postretirement Benefit Plan [Member]
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
Accrued pension and other long-term employee benefits
 
 
 
$ (0.1)
$ (4.6)
 
Long-term Employee Benefits - Schedule of Accumulated and Projected Benefit Obligations (Detail) (Successor [Member], Pension Plan [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Successor [Member] |
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
ABO
$ 559.4 
$ 541.5 
Plans with PBO in excess of plan assets:
 
 
PBO
606.2 
595.7 
ABO
553.2 
534.9 
Fair value plan assets
287.5 
273.8 
Plans with ABO in excess of plan assets:
 
 
PBO
602.0 
537.8 
ABO
550.9 
488.9 
Fair value plan assets
$ 285.1 
$ 227.2 
Long-term Employee Benefits - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] |
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive income (loss), before tax
$ (52.6)
$ 10.0 
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] |
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive income (loss), before tax
(0.4)
0.6 
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] |
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive income (loss), before tax
4.3 
0.4 
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] |
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive income (loss), before tax
4.1 
Accumulated Defined Benefit Plans Adjustment [Member] |
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive income (loss), before tax
(48.3)
10.4 
Accumulated Defined Benefit Plans Adjustment [Member] |
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive income (loss), before tax
$ 3.7 
$ 0.6 
Long-term Employee Benefits - Schedule of Amounts in Accumulated Other Comprehensive Income to be Amortized (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Amortization of net actuarial gains (losses)
$ (1.1)
Amortization of prior service (cost) credit
0.3 
Total
(0.8)
Other Postretirement Benefit Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Amortization of net actuarial gains (losses)
Amortization of prior service (cost) credit
4.1 
Total
$ 4.1 
Long-term Employee Benefits - Schedule of Assumptions Used (Detail)
12 Months Ended
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2014
Pension Plan [Member]
Successor [Member]
Dec. 31, 2013
Pension Plan [Member]
Successor [Member]
Dec. 31, 2012
Pension Plan [Member]
Predecessor [Member]
Dec. 31, 2014
Other Postretirement Benefit Plan [Member]
Successor [Member]
Dec. 31, 2013
Other Postretirement Benefit Plan [Member]
Successor [Member]
Dec. 31, 2012
Other Postretirement Benefit Plan [Member]
Predecessor [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
Discount rate to determine benefit obligations
 
 
3.23% 
4.11% 
3.38% 
1.50% 
4.80% 
4.86% 
Discount rate to determine net cost
 
 
4.11% 
4.15% 
4.73% 
4.80% 
4.20% 
7.28% 
Rate of future compensation increases to determine benefit obligation
 
 
3.57% 
3.52% 
3.16% 
0.00% 
0.00% 
3.00% 
Rate of future compensation increases to determine net cost
 
 
3.52% 
3.69% 
3.33% 
0.00% 
0.00% 
4.00% 
Rate of return on plan assets to determine net cost
5.21% 
5.23% 
5.23% 
5.22% 
7.71% 
 
 
 
Long-term Employee Benefits - Schedule of Expected Benefit Payments (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2015
$ 34.8 
2016
27.1 
2017
29.8 
2018
31.0 
2019
37.6 
2020-2024
180.3 
Other Postretirement Benefit Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2015
2016
0.1 
2017
2018
2019
2020-2024
$ 0 
Long-term Employee Benefits - Schedule of Allocation of Plan Assets (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Real Estate [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Real Estate [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Real Estate [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Private Equity Funds [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Private Equity Funds [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Private Equity Funds [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Dec. 31, 2013
Pension Plan [Member]
Feb. 1, 2013
Pension Plan [Member]
Dec. 31, 2012
Pension Plan [Member]
Dec. 31, 2014
Pension Plan [Member]
Equity Securities [Member]
Dec. 31, 2014
Pension Plan [Member]
Equity Securities [Member]
Minimum [Member]
Dec. 31, 2013
Pension Plan [Member]
Equity Securities [Member]
Minimum [Member]
Dec. 31, 2014
Pension Plan [Member]
Equity Securities [Member]
Maximum [Member]
Dec. 31, 2013
Pension Plan [Member]
Equity Securities [Member]
Maximum [Member]
Dec. 31, 2014
Pension Plan [Member]
Debt Securities [Member]
Dec. 31, 2014
Pension Plan [Member]
Debt Securities [Member]
Minimum [Member]
Dec. 31, 2013
Pension Plan [Member]
Debt Securities [Member]
Minimum [Member]
Dec. 31, 2014
Pension Plan [Member]
Debt Securities [Member]
Maximum [Member]
Dec. 31, 2013
Pension Plan [Member]
Debt Securities [Member]
Maximum [Member]
Dec. 31, 2014
Pension Plan [Member]
Real Estate [Member]
Dec. 31, 2013
Pension Plan [Member]
Real Estate [Member]
Dec. 31, 2014
Pension Plan [Member]
Real Estate [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
Real Estate [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
Real Estate [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
Real Estate [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
Real Estate [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
Real Estate [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Real Estate [Member]
Minimum [Member]
Dec. 31, 2013
Pension Plan [Member]
Real Estate [Member]
Minimum [Member]
Dec. 31, 2014
Pension Plan [Member]
Real Estate [Member]
Maximum [Member]
Dec. 31, 2013
Pension Plan [Member]
Real Estate [Member]
Maximum [Member]
Dec. 31, 2014
Pension Plan [Member]
Other Assets [Member]
Dec. 31, 2014
Pension Plan [Member]
Other Assets [Member]
Minimum [Member]
Dec. 31, 2013
Pension Plan [Member]
Other Assets [Member]
Minimum [Member]
Dec. 31, 2014
Pension Plan [Member]
Other Assets [Member]
Maximum [Member]
Dec. 31, 2013
Pension Plan [Member]
Other Assets [Member]
Maximum [Member]
Dec. 31, 2014
Pension Plan [Member]
Cash and Cash Equivalents [Member]
Dec. 31, 2013
Pension Plan [Member]
Cash and Cash Equivalents [Member]
Dec. 31, 2014
Pension Plan [Member]
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
US Equity Securities [Member]
Dec. 31, 2013
Pension Plan [Member]
US Equity Securities [Member]
Dec. 31, 2014
Pension Plan [Member]
US Equity Securities [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
US Equity Securities [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
US Equity Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
US Equity Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
US Equity Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
US Equity Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Non US Equity Securities [Member]
Dec. 31, 2013
Pension Plan [Member]
Non US Equity Securities [Member]
Dec. 31, 2014
Pension Plan [Member]
Non US Equity Securities [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
Non US Equity Securities [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
Non US Equity Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
Non US Equity Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
Non US Equity Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
Non US Equity Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Government Debt Securities [Member]
Dec. 31, 2013
Pension Plan [Member]
Government Debt Securities [Member]
Dec. 31, 2014
Pension Plan [Member]
Government Debt Securities [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
Government Debt Securities [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
Government Debt Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
Government Debt Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
Government Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
Government Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Corporate Debt Securities [Member]
Dec. 31, 2013
Pension Plan [Member]
Corporate Debt Securities [Member]
Dec. 31, 2014
Pension Plan [Member]
Corporate Debt Securities [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
Corporate Debt Securities [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
Corporate Debt Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
Corporate Debt Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
Corporate Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
Corporate Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Hedge Funds [Member]
Dec. 31, 2013
Pension Plan [Member]
Hedge Funds [Member]
Dec. 31, 2014
Pension Plan [Member]
Hedge Funds [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
Hedge Funds [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
Hedge Funds [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
Hedge Funds [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
Hedge Funds [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
Hedge Funds [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Private Equity Funds [Member]
Dec. 31, 2013
Pension Plan [Member]
Private Equity Funds [Member]
Dec. 31, 2014
Pension Plan [Member]
Private Equity Funds [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
Private Equity Funds [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
Private Equity Funds [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
Private Equity Funds [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
Private Equity Funds [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
Private Equity Funds [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Defined Benefit Plan Assets Excluding Pension Trust Receivables [Member]
Dec. 31, 2013
Pension Plan [Member]
Defined Benefit Plan Assets Excluding Pension Trust Receivables [Member]
Dec. 31, 2014
Pension Plan [Member]
Defined Benefit Plan Assets Excluding Pension Trust Receivables [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Pension Plan [Member]
Defined Benefit Plan Assets Excluding Pension Trust Receivables [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2014
Pension Plan [Member]
Defined Benefit Plan Assets Excluding Pension Trust Receivables [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Pension Plan [Member]
Defined Benefit Plan Assets Excluding Pension Trust Receivables [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2014
Pension Plan [Member]
Defined Benefit Plan Assets Excluding Pension Trust Receivables [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Pension Plan [Member]
Defined Benefit Plan Assets Excluding Pension Trust Receivables [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2014
Pension Plan [Member]
Pension Trust Receivables [Member]
Dec. 31, 2013
Pension Plan [Member]
Pension Trust Receivables [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Actual plan asset allocations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35.00% 
35.00% 
40.00% 
40.00% 
 
35.00% 
35.00% 
40.00% 
40.00% 
 
 
 
 
 
 
 
 
0.00% 
0.00% 
1.00% 
1.00% 
 
20.00% 
20.00% 
25.00% 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Target plan asset allocations minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
35.00% 
 
 
 
 
35.00% 
 
 
 
 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Target plan asset allocations maximum
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
 
 
 
 
40.00% 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets
$ 65.8 
$ 59.6 
$ 12.2 
$ 0.4 
$ 0.3 
$ 1.7 
$ 63.0 
$ 59.3 
$ 10.5 
$ 294.5 
$ 281.3 
$ 250.7 
$ 0 
 
 
 
 
 
 
 
 
 
 
$ 0.4 
$ 0.3 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0.4 
$ 0.3 
 
 
 
 
 
 
 
 
 
$ 4.4 
$ 6.7 
$ 4.4 
$ 6.7 
$ 0 
$ 0 
$ 0 
$ 0 
$ 16.1 
$ 13.6 
$ 16.1 
$ 13.2 
$ 0 
$ 0.4 
$ 0 
$ 0 
$ 79.2 
$ 71.3 
$ 78.7 
$ 70.8 
$ 0.4 
$ 0.5 
$ 0.1 
$ 0 
$ 36.9 
$ 34.4 
$ 36.3 
$ 34.4 
$ 0.6 
$ 0 
$ 0 
$ 0 
$ 55.3 
$ 52.2 
$ 53.0 
$ 49.3 
$ 0 
$ 2.9 
$ 2.3 
$ 0 
$ 0.2 
$ 0.4 
$ 0.1 
$ 0.2 
$ 0.1 
$ 0.2 
$ 0 
$ 0 
$ 63.2 
$ 59.5 
$ 0.1 
$ 0 
$ 0.1 
$ 0.2 
$ 63.0 
$ 59.3 
$ 255.7 
$ 238.4 
$ 188.7 
$ 174.6 
$ 1.2 
$ 4.2 
$ 65.8 
$ 59.6 
$ 38.8 
$ 42.9 
Long-term Employee Benefits - Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Detail) (Successor [Member], Fair Value, Inputs, Level 3 [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Change in plan assets:
 
 
Fair value of plan assets at:
$ 59.6 
$ 12.2 
Realized (loss)
(0.1)
Change in unrealized gain
0.2 
0.2 
Purchases, sales, issues and settlements
6.0 
45.6 
Transfers in/(out) of Level 3
1.7 
Fair value of plan assets at:
65.8 
59.6 
Private Equity Funds [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
59.3 
10.5 
Realized (loss)
Change in unrealized gain
0.2 
Purchases, sales, issues and settlements
3.7 
46.9 
Transfers in/(out) of Level 3
1.7 
Fair value of plan assets at:
63.0 
59.3 
Debt and Equity [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
Realized (loss)
Change in unrealized gain
Purchases, sales, issues and settlements
2.4 
Transfers in/(out) of Level 3
Fair value of plan assets at:
2.4 
Real Estate [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
0.3 
1.7 
Realized (loss)
(0.1)
Change in unrealized gain
0.2 
Purchases, sales, issues and settlements
(0.1)
(1.3)
Transfers in/(out) of Level 3
Fair value of plan assets at:
$ 0.4 
$ 0.3 
Stock-based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Detail) (Employee Stock Option [Member], Successor [Member])
12 Months Ended
Dec. 31, 2014
2014 Plan [Member]
Dec. 31, 2013
2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected term
7 years 9 months 22 days 
7 years 9 months 22 days 
Volatility
28.28% 
28.61% 
Dividend Yield
0.00% 
0.00% 
Discount Rate
2.21% 
2.13% 
Stock-based Compensation - Schedule of Stock Options Roll Forward (Detail) (Successor [Member], USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Successor [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]
 
 
Beginning balance
17,100,000 
16,177,882 
Granted
100,945 
1,558,159 
Exercised
 
(363,248)
Forfeited
 
(275,757)
Ending balance
 
17,100,000 
Vested and expected to vest, shares
 
17,097,036 
Exercisable, shares
 
2,878,469 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
Beginning balance (in dollars per share)
$ 9.38 
$ 9.32 
Granted (in dollars per share)
$ 25.49 
$ 9.62 
Exercised (in dollars per share)
 
$ 8.03 
Forfeited (in dollars per share)
 
$ 9.32 
Ending balance (in dollars per share)
 
$ 9.38 
Vested and expected to vest, weighted average exercise price (in dollars per share)
 
$ 9.38 
Exercisable, weighted average exercise price (in dollars per share)
 
$ 9.49 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
 
Vested and expected to vest, aggregate intrinsic value
 
$ 284.5 
Exercisable, aggregate intrinsic value
 
$ 47.6 
Vested and expected to vest, aggregate intrinsic value
 
 
Vested and expected to vest, weighted average remaining contractual term
 
8 years 6 months 29 days 
Exercisable, weighted average remaining contractual term
 
8 years 5 months 9 days 
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Schedule Of Income Tax [Line Items]
 
 
 
 
 
 
 
Domestic
 
 
$ 0 
$ (8.8)
$ (153.8)
$ (1.5)
$ 82.8 
Foreign
 
 
(29.0)
45.6 
(109.9)
17.1 
310.2 
Income (loss) before income taxes
$ 47.9 
$ 8.3 
$ (29.0)
$ 36.8 
$ (263.7)
$ 15.6 
$ 393.0 
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
 
 
 
 
U.S. Federal
 
 
$ 0 
$ 0 
$ 0 
$ (8.8)
$ 30.9 
State
 
 
2.0 
2.3 
0.1 
6.6 
Foreign
 
 
38.3 
73.7 
6.7 
98.6 
Total
 
 
40.3 
76.0 
(2.0)
136.1 
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
 
 
 
 
U.S. Federal
 
 
(2.1)
(43.7)
7.0 
(4.5)
State
 
 
(2.9)
(2.5)
(0.2)
(0.4)
Foreign
 
 
(33.2)
(74.6)
2.3 
14.0 
Total
(17.2)
(15.1)
(38.2)
(120.8)
9.1 
9.1 
U.S. Federal
 
 
(2.1)
(43.7)
(1.8)
26.4 
State
 
 
(0.9)
(0.2)
(0.1)
6.2 
Foreign
 
 
5.1 
(0.9)
9.0 
112.6 
Total
$ 1.2 
$ 12.0 
$ 0 
$ 2.1 
$ (44.8)
$ 7.1 
$ 145.2 
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2013
Successor [Member]
Valuation Allowance, Operating Loss Carryforwards [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
 
 
 
 
 
Statutory U.S. federal income tax / rate(1)
 
 
$ (10.1)
$ 12.9 
$ (92.3)
 
$ 5.5 
$ 137.6 
Foreign income taxed at rates other than 35%
 
 
10.1 
(46.7)
(36.6)
 
1.0 
(10.9)
Changes in valuation allowances
 
 
 
44.4 
55.0 
 
1.4 
9.8 
Foreign exchange (gain) loss
 
 
 
8.7 
8.7 
 
0.5 
4.7 
Unrecognized tax benefits(2)
 
 
 
(44.0)
35.1 
 
 
 
Withholding taxes, net
 
 
 
(0.3)
8.3 
 
 
 
Non-deductible interest
 
 
 
15.4 
6.4 
 
 
 
Non-deductible expenses
 
 
 
14.2 
19.4 
 
 
 
Tax credits
 
 
 
(3.6)
(1.0)
 
 
 
Capital loss(3)
 
 
 
 
(46.7)
 
 
 
Other-net
 
 
 
1.1 
(1.1)
 
(1.3)
4.0 
Total
1.2 
12.0 
2.1 
(44.8)
 
7.1 
145.2 
Effective Income Tax Rate Reconciliation, Percent [Abstract]
 
 
 
 
 
 
 
 
Statutory U.S. federal income tax / rate(1)
35.00% 
 
35.00% 
35.00% 
35.00% 
 
35.00% 
35.00% 
Interest and debt acquisition costs
 
 
 
21.1 
21.1 
 
 
 
Foreign income taxed at rates other than 35%
 
 
(35.00%)
(127.00%)
13.90% 
 
6.60% 
(2.80%)
Valuation allowances and reserves, charged to cost and expense
 
 
 
 
 
$ 46.7 
 
 
Changes in valuation allowances
 
 
0.00% 
120.90% 
(20.90%)
 
8.90% 
2.50% 
Foreign exchange (gain) loss
 
 
0.00% 
23.70% 
(3.30%)
 
3.10% 
1.20% 
Unrecognized tax benefits(2)
 
 
0.00% 
(119.70%)
(13.20%)
 
0.00% 
0.00% 
Withholding taxes, net
 
 
0.00% 
(0.80%)
(3.20%)
 
0.00% 
0.00% 
Non-deductible interest
 
 
0.00% 
41.90% 
(2.40%)
 
0.00% 
0.00% 
Non-deductible expenses
 
 
0.00% 
38.60% 
(7.40%)
 
0.00% 
0.00% 
Tax credits
 
 
0.00% 
(9.80%)
0.40% 
 
0.00% 
0.00% 
Capital loss(3)
 
 
0.00% 
0.00% 
17.70% 
 
0.00% 
0.00% 
Other-net
 
 
0.00% 
2.90% 
0.40% 
 
(8.00%)
1.10% 
Total income tax (benefit)/ effective tax rate
2.50% 
144.60% 
0.00% 
5.70% 
17.00% 
 
45.60% 
37.00% 
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
Deferred tax asset
 
 
 
Tax loss and credit carryforwards
 
$ 185.6 
$ 111.7 
Goodwill and intangibles
 
90.8 
89.4 
Compensation & employee benefits
 
92.4 
79.1 
Accruals & other reserves
 
58.0 
40.5 
Interest expense
 
13.4 
8.6 
Total deferred tax assets
 
440.2 
329.3 
Less: Valuation allowance
 
(101.9)
(63.4)
Net, deferred tax assets
 
338.3 
265.9 
Deferred tax liabilities
 
 
 
Inventory
 
(3.0)
(1.3)
Property, Plant & Equipment
 
(215.0)
(218.5)
Accounts Receivable & Other Assets
 
(2.5)
(8.4)
Equity Investment & Other Securities
 
(2.2)
(5.8)
Unremitted earnings
 
(8.5)
(15.9)
Long-Term Debt
 
(8.1)
 
Total deferred tax liabilities
 
(239.3)
(249.9)
Net deferred tax asset
 
99.0 
16.0 
Deferred Tax Assets, Net, Classification [Abstract]
 
 
 
Current asset
68.2 
64.5 
30.0 
Current liability
(6.4)
(7.3)
(5.5)
Non-current assets
 
250.0 
271.9 
Non-current liability
(190.6)
(208.2)
(280.4)
Net deferred tax asset
 
$ 99.0 
$ 16.0 
Income Taxes - Additional Information (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Tax_Positions
Jurisdictions
Dec. 31, 2013
Jan. 31, 2013
Dec. 31, 2012
Schedule Of Income Tax [Line Items]
 
 
 
 
Tax credit carryforward
$ 11.6 
$ 3.7 
 
 
Undistributed foreign earnings
8.5 
15.9 
 
 
Expense (benefit) from subsidiary earnings and reduced withholding taxes on prior year earnings, amount
4.7 
 
 
 
Subsidiary earnings, amount
1.5 
 
 
 
Witholding taxes on prior year earnings, amount
3.2 
 
 
 
Unrecognized tax benefits
5.3 
38.9 
Unrecognized tax benefits that would impact effective tax rate
5.3 
17.8 
 
 
Penalties and interest expense
6.8 
7.4 
 
 
Penalties and interest accrued
0.3 
7.1 
 
 
Number of tax matters resolved
 
 
 
Unrecognized tax benefits, period increase (decrease)
31.0 
 
 
 
Number of foreign income tax jurisdictions
40 
 
 
 
Unrecognized Tax Benefit [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Valuation allowances deduction
21.1 
 
 
 
Earliest Tax Year [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Tax credit carryforward
0.6 
 
 
 
Foreign Tax Authority [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating loss carryforwards
118.3 
83.1 
 
 
Operating and capital loss carryforwards with no expiration
78.2 
53.2 
 
 
Operating and capital loss carryforwards, subject to expiration
40.1 
29.9 
 
 
Domestic Tax Authority [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating and capital loss carryforwards, subject to expiration
53.2 
24.3 
 
 
State and Local Jurisdiction [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating and capital loss carryforwards, subject to expiration
2.5 
0.6 
 
 
Her Majesty's Revenue and Customs, Luxembourg Inland Revenue, and Federal Ministry of Finance [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Tax credit carryforward, valuation allowance
$ 101.9 
$ 63.4 
 
 
Income Taxes - Schedule of Total Gross Unrecognized Tax Benefits (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Jan. 31, 2013
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
 
 
Beginning Balance
$ 0 
$ 38.9 
$ 0 
$ 0 
$ 0 
Increases related to acquisition
11.3 
Increases related to positions taken on items from prior years
Decreases related to positions taken on items from prior years
(33.6)
Increases related to positions taken in the current year
27.6 
Settlement of uncertain tax positions with tax authorities
Decreases due to expiration of statutes of limitations
Ending Balance
$ 0 
$ 5.3 
$ 38.9 
$ 0 
$ 0 
Other Assets (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
Balance Sheet Components [Line Items]
 
 
 
Available for sale securities
 
$ 4.5 
$ 4.9 
Deferred income taxes-non-current
 
250.0 
271.9 
Other
 
219.2 
218.3 
Total
$ 485.5 
$ 473.7 
$ 495.1 
Accounts Payable (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
Balance Sheet Components [Line Items]
 
 
 
Trade payables
 
$ 463.6 
$ 428.8 
Non-income taxes
 
21.4 
40.5 
Other
 
9.5 
9.2 
Total
$ 458.3 
$ 494.5 
$ 478.5 
Other Accrued Liabilities (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Feb. 1, 2013
Successor [Member]
 
 
 
 
Balance Sheet Components [Line Items]
 
 
 
 
Compensation and other employee-related costs
 
$ 153.0 
$ 168.0 
 
Current portion of long-term employee benefit plans
 
12.4 
13.3 
 
Restructuring
31.7 
48.5 
98.4 
0.5 
Discounts, rebates, and warranties
 
68.6 
65.0 
 
Income taxes payable
 
20.8 
25.1 
 
Derivative liabilities
 
1.5 
1.2 
 
Other
 
100.0 
101.7 
 
Total
$ 291.7 
$ 404.8 
$ 472.7 
 
Borrowings - Short Term Borrowings and Bridge Financing (Detail) (Successor [Member], USD $)
In Millions, unless otherwise specified
4 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Mar. 31, 2015
Aug. 30, 2012
Secured Debt [Member]
Dec. 31, 2013
Bridge Facility [Member]
Dec. 31, 2013
Bridge Facility [Member]
Debt Associated Fees [Member]
Aug. 30, 2012
Unsecured Debt [Member]
Dec. 31, 2014
Miscellaneous Investments [Member]
Dec. 31, 2013
Miscellaneous Investments [Member]
Sep. 12, 2013
Miscellaneous Investments [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
 
$ 12.2 
$ 18.2 
$ 14.3 
 
 
 
 
$ 12.2 
$ 0.4 
$ 27.8 
Bridge loan
 
 
 
 
300.0 
 
 
1,100.0 
 
 
 
Bridge financing commitment fees
$ 0 
$ 0 
$ 25.0 
 
 
$ 21.0 
$ 4.0 
 
 
 
 
Segments - Schedule of Revenue from External Customers and Long-l (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 4 Months Ended 12 Months Ended 4 Months Ended 12 Months Ended 4 Months Ended 12 Months Ended 4 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2015
Successor [Member]
Mar. 31, 2014
Successor [Member]
Dec. 31, 2012
Successor [Member]
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Dec. 31, 2012
Successor [Member]
North America [Member]
Dec. 31, 2014
Successor [Member]
North America [Member]
Dec. 31, 2013
Successor [Member]
North America [Member]
Dec. 31, 2012
Successor [Member]
EMEA [Member]
Dec. 31, 2014
Successor [Member]
EMEA [Member]
Dec. 31, 2013
Successor [Member]
EMEA [Member]
Dec. 31, 2012
Successor [Member]
Asia Pacific [Member]
Dec. 31, 2014
Successor [Member]
Asia Pacific [Member]
Dec. 31, 2013
Successor [Member]
Asia Pacific [Member]
Dec. 31, 2012
Successor [Member]
Latin America [Member]
Dec. 31, 2014
Successor [Member]
Latin America [Member]
Dec. 31, 2013
Successor [Member]
Latin America [Member]
Dec. 31, 2014
Successor [Member]
GERMANY
Dec. 31, 2013
Successor [Member]
GERMANY
Dec. 31, 2014
Successor [Member]
CHINA
Dec. 31, 2013
Successor [Member]
CHINA
Dec. 31, 2014
Successor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
CANADA
Dec. 31, 2013
Successor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
CANADA
Dec. 31, 2014
Successor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
GERMANY
Dec. 31, 2013
Successor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
GERMANY
Dec. 31, 2014
Successor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
CHINA
Dec. 31, 2013
Successor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
CHINA
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Jan. 31, 2013
Predecessor [Member]
North America [Member]
Dec. 31, 2012
Predecessor [Member]
North America [Member]
Jan. 31, 2013
Predecessor [Member]
EMEA [Member]
Dec. 31, 2012
Predecessor [Member]
EMEA [Member]
Jan. 31, 2013
Predecessor [Member]
Asia Pacific [Member]
Dec. 31, 2012
Predecessor [Member]
Asia Pacific [Member]
Jan. 31, 2013
Predecessor [Member]
Latin America [Member]
Dec. 31, 2012
Predecessor [Member]
Latin America [Member]
Jan. 31, 2013
Predecessor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
CANADA
Dec. 31, 2012
Predecessor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
CANADA
Jan. 31, 2013
Predecessor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
GERMANY
Dec. 31, 2012
Predecessor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
GERMANY
Jan. 31, 2013
Predecessor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
CHINA
Dec. 31, 2012
Predecessor [Member]
Net Sales [Member]
Geographic Concentration Risk [Member]
CHINA
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 989.2 
$ 1,047.4 
$ 0 
$ 4,361.7 
$ 3,951.1 
$ 0 
$ 1,307.8 
$ 1,165.4 
$ 0 
$ 1,672.0 
$ 1,540.4 
$ 0 
$ 715.0 
$ 593.7 
$ 0 
$ 666.9 
$ 651.6 
 
 
 
 
 
 
 
 
 
 
$ 326.2 
$ 4,219.4 
$ 81.6 
$ 1,238.6 
$ 141.0 
$ 1,675.4 
$ 51.7 
$ 595.0 
$ 51.9 
$ 710.4 
 
 
 
 
 
 
Long-lived assets
 
 
 
$ 1,514.1 
$ 1,622.6 
 
$ 481.4 
$ 483.8 
 
$ 542.0 
$ 623.5 
 
$ 234.3 
$ 218.1 
 
$ 256.4 
$ 297.2 
$ 302.8 
$ 348.1 
$ 189.4 
$ 167.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Concentration risk, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.00% 
3.00% 
10.00% 
10.00% 
11.00% 
10.00% 
 
 
 
 
 
 
 
 
 
 
3.00% 
3.00% 
11.00% 
16.00% 
11.00% 
8.00% 
Quarterly Financial Information (Unaudited) (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Dec. 31, 2013
Successor [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$ 997.5 
$ 1,087.0 
$ 1,115.8 
$ 1,134.3 
$ 1,054.4 
$ 1,106.7 
$ 1,082.8 
$ 1,122.2 
$ 675.1 
$ 0 
$ 4,391.5 
$ 3,986.8 
Cost of goods sold
649.8 
723.1 
728.1 
742.5 
703.5 
706.1 
739.1 
788.5 
539.1 
2,897.2 
2,772.8 
Net income (loss)
46.7 
0.9 
(18.3)
55.8 
(3.7)
(47.0)
6.4 
(21.8)
(156.5)
(29.0)
34.7 
(218.9)
Net income (loss) attributable to controlling interests
45.1 
(2.2)
(19.9)
53.8 
(4.3)
(49.3)
5.0 
(22.8)
(157.8)
(29.0)
27.4 
(224.9)
Basic net income (loss) per share
$ 0.20 
$ (0.01)
$ (0.09)
$ 0.23 
$ (0.02)
$ (0.22)
$ 0.02 
$ (0.10)
$ (0.67)
$ 0.00 
$ 0.12 
$ (0.97)
Diluted net income (loss) per share
$ 0.19 
$ (0.01)
$ (0.09)
$ 0.23 
$ (0.02)
$ (0.22)
$ 0.02 
$ (0.10)
$ (0.67)
$ 0.00 
$ 0.12 
$ (0.97)
Fair value step up of acquired inventory sold
 
 
 
 
 
 
 
31.1 
72.6 
103.7 
Recognized gain (loss) due to curtailments
 
 
 
 
5.6 
 
 
 
 
 
 
 
Quantifying Misstatement in Current Year Financial Statements, Amount
 
3.8 
 
 
 
 
 
 
 
 
0.4 
 
Successor [Member] |
Pension Plan [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Recognized gain (loss) due to curtailments
 
 
 
 
 
 
 
 
 
7.3 
Successor [Member] |
Pension Plan [Member] |
Selling, General and Administrative Expenses [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Recognized gain (loss) due to curtailments
 
 
7.3 
7.7 
 
 
 
 
 
 
7.3 
 
Prior Period Reclassification Adjustment [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
2.5 
2.8 
2.0 
1.4 
5.1 
3.0 
 
 
 
Net income (loss) attributable to controlling interests
 
 
 
2.5 
2.8 
2.0 
1.4 
5.1 
3.0 
 
 
 
Carlyle Investment Management Llc [Member] |
Successor [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Pre tax charge related to management agreement
 
$ 13.4 
 
 
 
 
 
 
 
 
$ 13.4 
 
Schedule ll (Detail) (Allowance for Doubtful Accounts [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2014
Successor [Member]
Dec. 31, 2013
Successor [Member]
Jan. 31, 2013
Predecessor [Member]
Dec. 31, 2012
Predecessor [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
 
Balance at Beginning of Year
$ 6.5 
$ 0 
$ 29.6 
$ 31.4 
Charged to Expenses
5.1 
5.4 
0.2 
5.0 
Deductions(1)
1.7 
(1.1)
(1.1)
6.8 
Balance at End of Year
$ 9.9 
$ 6.5 
$ 30.9 
$ 29.6