AXALTA COATING SYSTEMS LTD., 10-Q filed on 4/26/2017
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2017
Apr. 18, 2017
Document And Entity Information [Abstract]
 
 
Entity Registrant Name
Axalta Coating Systems Ltd. 
 
Trading Symbol
AXTA 
 
Entity Central Index Key
0001616862 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2017 
 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
242,100,966 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Income Statement [Abstract]
 
 
Net sales
$ 1,007.8 
$ 955.6 
Other revenue
5.9 
6.0 
Total revenue
1,013.7 
961.6 
Cost of goods sold
641.1 
606.4 
Selling, general and administrative expenses
225.3 
219.1 
Research and development expenses
15.6 
12.6 
Amortization of acquired intangibles
21.7 
20.2 
Income from operations
110.0 
103.3 
Interest expense, net
35.8 
50.1 
Other (income) expense, net
(1.6)
8.0 
Income before income taxes
75.8 
45.2 
Provision for income taxes
9.9 
13.4 
Net income
65.9 
31.8 
Less: Net income attributable to noncontrolling interests
1.8 
0.9 
Net income attributable to controlling interests
$ 64.1 
$ 30.9 
Basic net income (loss) per share (dollars per share)
$ 0.27 
$ 0.13 
Diluted net income (loss) per share (dollars per share)
$ 0.26 
$ 0.13 
Basic weighted average shares outstanding (in shares)
239.8 
237.1 
Diluted weighted average shares outstanding (in shares)
246.1 
243.4 
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 65.9 
$ 31.8 
Other comprehensive income, before tax:
 
 
Foreign currency translation adjustments
40.6 
15.7 
Unrealized loss on securities
(0.4)
Unrealized gain (loss) on derivatives
0.6 
(2.2)
Unrealized gain (loss) on pension plan obligations
0.5 
(0.1)
Other comprehensive income, before tax
41.7 
13.0 
Income tax (provision) benefit related to items of other comprehensive income
(0.2)
0.8 
Other comprehensive income, net of tax
41.5 
13.8 
Comprehensive income
107.4 
45.6 
Less: Comprehensive income attributable to noncontrolling interests
2.7 
0.9 
Comprehensive income attributable to controlling interests
$ 104.7 
$ 44.7 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 439.1 
$ 535.4 
Restricted cash
2.9 
2.7 
Accounts and notes receivable, net
872.2 
801.9 
Inventories
559.1 
529.7 
Prepaid expenses and other
62.1 
50.3 
Total current assets
1,935.4 
1,920.0 
Property, plant and equipment, net
1,334.4 
1,315.7 
Goodwill
1,016.1 
961.0 
Identifiable intangibles, net
1,151.5 
1,130.3 
Other assets
523.0 
527.8 
Total assets
5,960.4 
5,854.8 
Current liabilities:
 
 
Accounts payable
456.7 
474.2 
Current portion of borrowings
29.0 
27.9 
Other accrued liabilities
365.8 
417.6 
Total current liabilities
851.5 
919.7 
Long-term borrowings
3,278.3 
3,236.0 
Accrued pensions
252.0 
249.1 
Deferred income taxes
161.9 
160.2 
Other liabilities
32.9 
32.2 
Total liabilities
4,576.6 
4,597.2 
Commitments and contingencies
   
   
Shareholders’ equity
 
 
Common shares, $1.00 par, 1,000.0 shares authorized, 241.9 and 240.5 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively
240.4 
239.3 
Capital in excess of par
1,312.4 
1,294.3 
Retained earnings (Accumulated deficit)
17.0 
(47.1)
Accumulated other comprehensive loss
(309.8)
(350.4)
Total Axalta shareholders’ equity
1,260.0 
1,136.1 
Noncontrolling interests
123.8 
121.5 
Total shareholders’ equity
1,383.8 
1,257.6 
Total liabilities and shareholders’ equity
$ 5,960.4 
$ 5,854.8 
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]
 
 
Common stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
Common shares, shares authorized (in shares)
1,000.0 
1,000.0 
Common shares, shares issued (in shares)
241.9 
240.5 
Common shares, shares outstanding (in shares)
241.9 
240.5 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Operating activities:
 
 
Net income
$ 65.9 
$ 31.8 
Adjustment to reconcile net income to cash used for operating activities:
 
 
Depreciation and amortization
82.4 
76.0 
Amortization of financing costs and original issue discount
2.1 
5.1 
Deferred income taxes
(3.3)
Realized and unrealized foreign exchange (gains) losses, net
(3.7)
7.5 
Stock-based compensation
10.4 
10.2 
Other non-cash, net
(0.3)
(2.9)
Changes in operating assets and liabilities:
 
 
Trade accounts and notes receivable
(62.5)
(26.5)
Inventories
(11.2)
(7.5)
Prepaid expenses and other
(27.5)
(13.8)
Accounts payable
(0.8)
(16.6)
Other accrued liabilities
(54.8)
(69.9)
Other liabilities
(4.7)
(3.4)
Cash used for operating activities
(4.7)
(13.3)
Investing activities:
 
 
Business acquisitions
(56.9)
Purchase of property, plant and equipment
(32.3)
(40.3)
Other investing activities
(0.2)
(2.9)
Cash used for investing activities
(89.4)
(43.2)
Financing activities:
 
 
Payments on short-term borrowings
(2.3)
(0.3)
Payments on long-term borrowings
(5.0)
(6.9)
Financing-related costs
(2.3)
Dividends paid to noncontrolling interests
(0.4)
(1.5)
Proceeds from option exercises
8.8 
2.0 
Deferred acquisition-related consideration
3.4 
Other financing activities
(0.3)
Cash used for financing activities
(4.6)
(7.0)
Decrease in cash
(98.7)
(63.5)
Effect of exchange rate changes on cash
2.6 
(1.9)
Cash at beginning of period
538.1 
487.7 
Cash at end of period
442.0 
422.3 
Cash and cash equivalents
439.1 
419.5 
Restricted cash
$ 2.9 
$ 2.8 
Basis of Presentation of the Condensed Consolidated Financial Statements
Basis of Presentation of the Condensed Consolidated Financial Statements
BASIS OF PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at March 31, 2017 and December 31, 2016, the results of operations and comprehensive income for the three months ended March 31, 2017 and 2016, 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 financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material.
The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results to be expected for a full year.
The Acquisition
The acquisition ("Acquisition") by Axalta and certain of its indirect subsidiaries of all the capital stock, other equity interests and assets of certain entities which, together with their subsidiaries, comprised the DuPont Performance Coatings business ("DPC"), formerly owned by E. I. du Pont de Nemours and Company ("DuPont"), closed on February 1, 2013.
Accounting Standards - Reclassifications
At December 31, 2016, we elected to early adopt Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows: Restricted Cash", which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. As a result, the condensed consolidated financial statements herein have been retroactively adjusted. These adjustments included a decrease in net cash used in investing activities by $0.1 million for the three months ended March 31, 2016.
At December 31, 2016, we elected to early adopt ASU 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation which resulted in retrospective changes to our previously issued condensed consolidated financial statements. The new standard resulted in the recognition of excess tax benefits in our provision for income taxes. Upon adoption, this resulted in a cumulative effect of an accounting change reclassification of $43.9 million to retained earnings (accumulated deficit) on the balance sheet as of January 1, 2016, as reflected in Note 18. It also resulted in a decrease to the tax provision and corresponding increase to net income of $1.2 million for the previously reported condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2016. The effect on our dilutive shares is disclosed in Note 10.
We retrospectively applied the changes in presentation to the condensed consolidated statements of cash flows and no longer classify excess tax benefits or employee taxes paid for shares withheld as financing activities, which increased net cash provided by operating activities and decreased net cash used in financing activities by $4.7 million for the three months ended March 31, 2016.
Recent Accounting Guidance
Recent Accounting Guidance
RECENT ACCOUNTING GUIDANCE
Accounting Guidance Issued But Not Yet Adopted
In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.
In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified on our reporting units.
In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize the assets and liabilities arising from all leases (both finance and operating) on the balance sheet. In addition to this main provision, this standard included a number of additional changes to lease accounting. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows. At a minimum, total assets and total liabilities will increase in the period the ASU is adopted.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the guidance that an entity should use related to revenue recognition. This standard was effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies will be allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to this date.
In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," which provides clarification around identifying performance obligations and the treatment of different licensing contracts. Additional standards related to revenue from contracts with customers have been issued during 2016 to provide narrow scope improvements and clarification. We have continued to assess the potential impact of the revised guidance on our financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters.
Goodwill and Identifiable Intangible Assets
Goodwill and Identifiable Intangible Assets
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
During the three months ended March 31, 2017, we completed two business acquisitions ("2017 Acquisitions"). These acquisitions included two North American businesses with one operating in the industrial end-market while the second operates in both the refinish and industrial end-markets. Acquisitions were accounted for as business combinations and the overall impacts to our condensed consolidated financial statements were not considered to be material, either individually or in the aggregate for the three months ended March 31, 2017. The fair value associated with definite-lived intangible assets from the 2017 Acquisitions was $22.2 million, comprised of $4.5 million in technology, $1.2 million of trademarks, $14.9 million of customer relationships and $1.6 million primarily consisting of non-compete agreements. The total fair value of consideration paid or payable on the 2017 Acquisitions was $62.6 million, including contingent consideration which had a fair value of $5.7 million.
At March 31, 2017, we have not finalized the purchase accounting related to the 2017 Acquisitions and these amounts represent preliminary values. For our business acquisitions completed after March 31, 2016, including the 2017 Acquisitions, we expect to finalize our purchase accounting during the respective measurement periods which will be no later than one year following the closing dates.
Goodwill
The following table shows changes in the carrying amount of goodwill from December 31, 2016 to March 31, 2017 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
At December 31, 2016
$
886.5

$
74.5

$
961.0

Goodwill from acquisitions
33.2


33.2

Foreign currency translation
20.5

1.4

21.9

At March 31, 2017
$
940.2

$
75.9

$
1,016.1


Identifiable Intangible Assets
The following tables summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
March 31, 2017
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
428.5

$
(166.7
)
$
261.8

10.1
Trademarks - indefinite-lived
278.5


278.5

Indefinite
Trademarks - definite-lived
56.9

(12.6
)
44.3

14.2
Customer relationships
700.8

(135.9
)
564.9

18.4
Non-compete agreements and other
2.5

(0.5
)
2.0

4.3
Total
$
1,467.2

$
(315.7
)
$
1,151.5

 
December 31, 2016
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
417.1

$
(153.6
)
$
263.5

10.2
Trademarks - indefinite-lived
273.2


273.2

Indefinite
Trademarks - definite-lived
55.0

(11.4
)
43.6

14.8
Customer relationships
672.6

(123.3
)
549.3

18.7
Non-compete agreements and other
2.4

(1.7
)
0.7

4.6
Total
$
1,420.3

$
(290.0
)
$
1,130.3

 

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2017 and each of the succeeding five years is:
Remainder of 2017
$
65.6

2018
$
87.2

2019
$
86.1

2020
$
84.7

2021
$
83.8

2022
$
77.3

Restructuring
Restructuring
RESTRUCTURING
In accordance with the applicable guidance for Nonretirement Postemployment Benefits, we accounted for termination benefits and recognized liabilities when it was considered probable that employees were entitled to termination benefits and the amounts could be reasonably estimated.
We have incurred costs in connection with involuntary termination benefits associated with our corporate-related initiatives, including our transition to a standalone entity and cost-saving opportunities associated with our Fit For Growth and Axalta Way initiatives. During the three months ended March 31, 2017 and 2016 we incurred restructuring costs of $1.0 million and $0.5 million, respectively. These amounts are recorded within selling, general and administrative expenses in the condensed consolidated statements of operations. The payments associated with these actions are expected to be substantially completed within 12 to 15 months from the balance sheet date.
The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2016 to March 31, 2017:
 
2017 Activity
Balance at December 31, 2016
$
66.1

Expense recorded
1.0

Payments made
(7.6
)
Foreign currency translations
1.8

Balance at March 31, 2017
$
61.3


Restructuring charges incurred during the fourth quarter ended December 31, 2016 included actions to reduce operational costs through activities to rationalize our manufacturing footprint. The impact to earnings from accelerated depreciation related to these manufacturing assets for the three months ended March 31, 2017 was $2.2 million. We currently expect impacts to earnings of approximately $7.6 million for the year ended December 31, 2017 for these restructuring plans, related to the accelerated depreciation of certain manufacturing assets.
Commitments and Contingencies
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
Leases
At March 31, 2017, we have recorded approximately $21.9 million in property, plant and equipment representing our landlord's estimated costs incurred to construct a property under a separate build-to-suit lease arrangement. This lease commenced construction during 2015 with landlord's construction expected to be completed during 2017. The construction related to the build-to-suit lease has estimated total costs of approximately $37.8 million.
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 against us or awards against DuPont for which we assumed the liabilities through the Acquisition. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time.
The potential effects, if any, on the unaudited condensed consolidated financial statements of Axalta will be recorded in the period in which these matters are probable and estimable, and such effects could be material.
In addition to the aforementioned matters, we are party to various legal proceedings in the ordinary course of business. Although the ultimate resolution of these various proceedings cannot be determined at this time, management does not believe that such proceedings, individually or in the aggregate, will have a material adverse effect on the unaudited condensed consolidated financial statements of Axalta.
Long-term Employee Benefits
Long-term Employee Benefits
LONG-TERM EMPLOYEE BENEFITS
Components of Net Periodic Benefit Cost
The following table sets forth the components of net periodic benefit cost for the three months ended March 31, 2017 and 2016.
 
Three Months Ended March 31,
 
2017
2016
Components of net periodic benefit cost:
 
 
Net periodic benefit cost:
 
 
Service cost
$
2.1

$
2.5

Interest cost
3.4

3.9

Expected return on plan assets
(3.5
)
(3.2
)
Amortization of actuarial (gain) loss, net
0.5

(0.1
)
Net periodic benefit cost
$
2.5

$
3.1

Stock-based Compensation
Stock-based Compensation
STOCK-BASED COMPENSATION
During the three months ended March 31, 2017 and 2016 we recognized $10.4 million and $10.2 million, respectively, in stock-based compensation expense which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized a tax benefit of $2.9 million and $3.9 million for the three months ended March 31, 2017 and 2016, respectively. Forfeitures are recorded in the period they occur.
2017 Activity
In February 2017, we granted non-qualified service-based stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units to certain employees and directors. All awards were granted under the Company's 2014 Incentive Award Plan (the "2014 Plan"). A summary of award activity by type for the three months ended March 31, 2017 is presented below.
Stock Options
Awards/Units
(in millions)
Weighted-
Average
Exercise
Price
Aggregate
Intrinsic
Value
 (in millions)
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at January 1, 2017
9.6

$
14.40

 
 
Granted
0.9

$
29.48

 
 
Exercised
(0.9
)
$
10.09

 
 
Forfeited
(0.1
)
$
23.38

 
 
Outstanding at March 31, 2017
9.5

$
16.08

 
 
Vested and expected to vest at March 31, 2017
9.5

$
16.08

$
153.7

7.12
Exercisable at March 31, 2017
7.2

$
12.21

$
144.8

6.53

Cash received by the Company upon exercise of options for the three months ended March 31, 2017 was $8.8 million. Tax benefits on these exercises were $5.3 million.
At March 31, 2017, there was $9.4 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 2.4 years.
Restricted Stock Awards and Restricted Stock Units
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2017
2.3

$
29.18

Granted
0.6

29.48

Vested
(0.3
)
23.36

Forfeited


Outstanding at March 31, 2017
2.6

$
29.86


Tax benefits on the vesting of restricted stock were $0.5 million for the three months ended March 31, 2017.
At March 31, 2017, there was $32.9 million of unamortized expense relating to unvested restricted stock awards and restricted stock units that is expected to be amortized over a weighted average period of 2.2 years.
Performance Stock Awards and Performance Share Units
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2017
0.3

$
27.74

Granted
0.3

38.11

Vested


Forfeited


Outstanding at March 31, 2017
0.6

$
31.08


At March 31, 2017, there was $16.2 million of unamortized expense relating to unvested performance stock awards and performance share units that are expected to be amortized over a weighted average period of 2.5 years.
Other Expense, Net
Other Expense, Net
OTHER (INCOME) EXPENSE, NET
 
Three Months Ended March 31,
 
2017
2016
Foreign exchange (gains) losses, net
$
(1.2
)
$
7.5

Other miscellaneous expense (income), net
(0.4
)
0.5

Total
$
(1.6
)
$
8.0


Net exchange (gains) losses for the three months ended March 31, 2017 and 2016 included losses of $1.5 million and $7.1 million, respectively, related to the remeasurement of the net monetary assets of our Venezuelan subsidiary as discussed further in Note 20.
Income Taxes
Income Taxes
INCOME TAXES
Our effective income tax rates for the three months ended March 31, 2017 and 2016 are as follows:
 
Three Months Ended March 31,
 
2017
2016
Effective Tax Rate
13.1
%
29.6
%

The lower effective tax rate for the three months ended March 31, 2017 was primarily due to the favorable impact of the tax benefits associated with current year excess tax benefits related to stock-based compensation of $5.8 million compared to $1.2 million for the three months ended March 31, 2017 and 2016, respectively, as well as the net favorable impact of earnings where the statutory rate is lower than the U.S. Federal statutory rate. The effective tax rate for the three months ended March 31, 2016 has been amended to reflect the adoption of ASU 2016-09, resulting in a decrease of 2.7% from the originally filed 32.3%.
The effective tax rate for the three months ended March 31, 2017 differs from the U.S. Federal statutory rate due to various items that impacted the effective rate both favorably and unfavorably. We recorded favorable adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate, currency exchange losses and current year excess tax benefits related to stock-based compensation. These adjustments were partially offset by the unfavorable impact of pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized and non-deductible expenses and interest.
Earnings (Loss) Per Common Share
Earnings (Loss) Per Common Share
NET INCOME PER COMMON SHARE
Basic net income per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the hypothetical exercise of outstanding stock options and vesting of restricted shares and performance shares. A reconciliation of our basic and diluted net income per common share is as follows:
 
Three Months Ended March 31,
(In millions, except per share data)
2017
2016(1)
Net income attributable to controlling interests
$
64.1

$
30.9

Basic weighted average shares outstanding
239.8

237.1

Diluted weighted average shares outstanding
246.1

243.4

Earnings per common share:
 
 
Basic net income per share
$
0.27

$
0.13

Diluted net income per share
$
0.26

$
0.13

(1) Net income per common share for the three months ended March 31, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 1, which increased diluted weighted average shares outstanding by 1.8 million shares.
The number of anti-dilutive shares that have been excluded in the computation of diluted net income per share for the three months ended March 31, 2017 and 2016 were 1.6 million and 1.9 million, respectively.
Accounts and Notes Receivable, Net
Accounts and Notes Receivable, Net
ACCOUNTS AND NOTES RECEIVABLE, NET
 
March 31, 2017
December 31, 2016
Accounts receivable—trade, net
$
735.2

$
640.4

Notes receivable
48.4

68.7

Other
88.6

92.8

Total
$
872.2

$
801.9


Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $13.9 million and $13.7 million at March 31, 2017 and December 31, 2016, respectively. Bad debt expense, within selling, general and administration expenses, was $0.7 million and $0.1 million for the three months ended March 31, 2017 and 2016, respectively.
Inventories
Inventories
INVENTORIES
 
March 31, 2017
December 31, 2016
Finished products
$
326.2

$
315.2

Semi-finished products
93.6

87.5

Raw materials and supplies
139.3

127.0

Total
$
559.1

$
529.7


Stores and supplies inventories of $21.4 million and $20.2 million at March 31, 2017 and December 31, 2016, respectively.
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net
PROPERTY, PLANT AND EQUIPMENT, NET
Depreciation expense amounted to $43.3 million and $41.7 million for the three months ended March 31, 2017 and 2016, respectively.
 
March 31, 2017
December 31, 2016
Property, plant and equipment
$
2,005.1

$
1,933.0

Accumulated depreciation
(670.7
)
(617.3
)
Property, plant and equipment, net
$
1,334.4

$
1,315.7

Borrowings
Borrowings
BORROWINGS
Borrowings are summarized as follows:
 
March 31, 2017
December 31, 2016
2023 Dollar Term Loans
$
1,541.1

$
1,545.0

2023 Euro Term Loans
428.3

417.6

2024 Dollar Senior Notes
500.0

500.0

2024 Euro Senior Notes
359.6

349.7

2025 Euro Senior Notes
483.0

469.8

Short-term and other borrowings
51.3

39.8

Unamortized original issue discount
(9.3
)
(10.0
)
Unamortized deferred financing costs
(46.7
)
(48.0
)

$
3,307.3

$
3,263.9

Less:


Short term borrowings
$
9.2

$
8.3

Current portion of long-term borrowings
19.8

19.6

Long-term debt
$
3,278.3

$
3,236.0


Senior Secured Credit Facilities, as amended
On February 3, 2014 (the "Second Amendment Effective Date"), Axalta Coating Systems Dutch B B.V. ("Dutch B B.V."), as "Dutch Borrower", and its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. ("Axalta US Holdings"), as "U.S. Borrower", executed the second amendment to the Senior Secured Credit Facilities (the "Second Amendment"). The Second Amendment (i) converted all of the outstanding Dollar Term Loans ($2,282.8 million) into a new class of term loans (the "2020 Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans (€397.0 million) into a new class of term loans (the "2020 Euro Term Loans" and, together with the 2020 Dollar Term Loans, the "2020 Term Loans").
On December 15, 2016 (the "Fourth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fourth amendment to the Senior Secured Credit Facilities (the "Fourth Amendment"). The Fourth Amendment (i) converted all of the outstanding 2020 Dollar Term Loans ($1,775.3 million) into a new tranche of term loans issued at par with principal of $1,545.0 million (the "2023 Dollar Term Loans"), (ii) converted all of the outstanding 2020 Euro Term Loans (€199.0 million) into a new tranche of term loans issued at par with principal of €400.0 million (the "2023 Euro Term Loans" and, together with the 2023 Dollar Term Loans, the "2023 Term Loans" and with the Revolving Credit Facility (as defined herein), the "Senior Secured Credit Facilities").
Interest was and is payable quarterly on both the 2020 Term Loans and 2023 Term Loans.
The 2023 Dollar Term Loans are subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such 2023 Dollar Term Loans is 2.50% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 1.50% per annum for Base Rate Loans as defined in the Credit Agreement. The 2023 Euro Term Loans are also subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such New Euro Term Loans is 2.25% per annum for Eurocurrency Rate Loans. The 2023 Euro Term Loans may not be Base Rate Loans.
Prior to the Fourth Amendment, interest on the 2020 Dollar Term Loans was subject to a floor of 1.00%, plus an applicable rate. The applicable rate for such 2020 Dollar Term Loans was 3.00% per annum for Eurocurrency Rate Loans and 2.00% per annum for Base Rate Loans. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans was 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 2020 Euro Term Loans were also subject to a floor of 1.00%, plus an applicable rate. The applicable rate for such 2020 Euro Term Loans was 3.25% per annum for Eurocurrency Rate Loans. The 2020 Euro Term Loans were not to be Base Rate Loans. The applicable rate was subject to a further 25 basis point reduction if the Total Net Leverage Ratio was less than or equal to 4.50:1.00. During the third quarter of 2014, our Total Net Leverage Ratio was less than 4.50:1.00. Consequently, the applicable rates were changed to 2.75% for the 2020 Dollar Term Loans and 3.00% for the 2020 Euro Term Loans through the Fourth Amendment Effective Date.
Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $75.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow.
The Senior Secured Credit Facilities are secured by substantially all assets of Axalta Coating Systems Dutch A B. V. ("Dutch A B.V.") and the guarantors. The 2023 Term Loans mature on February 1, 2023. Principal is paid quarterly on both the 2023 Term Loans based on 1% per annum of the original principal amount outstanding on the Fourth Amendment Effective Date with the unpaid balance due at maturity.
We are subject to customary negative covenants in addition to the First Lien Leverage Ratio financial covenant for purposes of determining any Excess Cash Flow mandatory payment. Further, the Senior Secured Credit Facilities, among other things, include customary restrictions (subject to certain exceptions) on the Company's ability to incur certain indebtedness, grant certain liens, make certain investments, declare or pay certain dividends, or repurchase shares of the Company's common stock. As of March 31, 2017, the Company is in compliance with all covenants under the Senior Secured Credit Facilities.
Revolving Credit Facility
On August 1, 2016 (the "Third Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the third amendment to the Senior Secured Credit Facilities (the "Third Amendment"). The Third Amendment impacted the Revolving Credit Facility by (i) extending the maturity of the Revolving Credit Facility to five years from the Third Amendment Effective Date, or August 1, 2021, provided that such date will be accelerated to the date that is 91 days prior to the maturity of the term loans borrowed under the Credit Agreement if the maturity of such term loans precedes the maturity of the Revolving Credit Facility, (ii) decreasing the applicable interest margins, and (iii) amending the financial covenant applicable to the Revolving Credit Facility to be applicable only when greater than 30% (previously 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. If such conditions are met, the First Lien Net Leverage Ratio (as defined by the Credit Agreement) at the end of the quarter is required to be greater than 5.50:1.00. At March 31, 2017, the financial covenant is not applicable as there were no borrowings.
Under the Third Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of 0.00% for Adjusted Eurocurrency Rate Loans (as defined in the Credit Agreement) plus an applicable rate of 2.75% (previously 3.50%) subject to an additional step-down to 2.50% or 2.25%, if the First Lien Net Leverage Ratio falls below 3.00:1.00 or 2.50:1.00, respectively. For Base Rate Loans, the interest is subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate or an Adjusted Eurocurrency Rate plus 1%, plus an applicable rate of 1.75% (previously 2.50%), subject to an additional step-down to 1.50% or 1.25%, if the First Lien Net Leverage Ratio falls below 3.00:1.00 and 2.50:1.00, respectively.
Under circumstances described in the Credit Agreement, we may increase available revolving or term facility borrowings by up to $400.0 million plus an additional amount subject to the Company not exceeding a maximum first lien leverage ratio described in the Credit Agreement.
There have been no borrowings outstanding on the Revolving Credit Facility since the issuance of the Senior Secured Credit Facilities. At March 31, 2017 and December 31, 2016, letters of credit issued under the Revolving Credit Facility totaled $21.3 million which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $378.7 million at both March 31, 2017 and December 31, 2016.
Significant Terms of the 2021 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 in aggregate principal amount of 7.375% senior unsecured notes due 2021 (the "2021 Dollar Senior Notes") and related guarantees thereof. Additionally, the Issuers issued €250.0 million in aggregate principal amount of 5.750% senior secured notes due 2021 (the "2021 Euro Senior Notes" and, together with the Dollar Senior Notes, the "2021 Senior Notes") and related guarantees thereof. The 2021 Senior Notes were unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries.
The indentures governing the 2021 Senior Notes contained covenants that restricted 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.
Issuance of New Senior Notes and Redemption of 2021 Senior Notes
On August 16, 2016, Axalta Coating Systems, LLC ("New U.S. Issuer"), issued $500.0 million in aggregate principal amount of 4.875% Senior Unsecured Notes (the “2024 Dollar Senior Notes”) and €335.0 million in aggregate principal amount of 4.250% Senior Unsecured Notes (the “2024 Euro Senior Notes”), each due August 2024 (collectively the “2024 Senior Notes” and with the 2025 Euro Senior Notes, the “New Senior Notes”, each of which is described in detail below), for the primary purpose of redeeming the 2021 Dollar Senior Notes. Consistent with the terms of the 2021 Dollar Senior Notes, we extinguished the principal at a redemption price equal to 105.531%.
The 2024 Senior Notes are fully and unconditionally guaranteed by Dutch B B.V., an indirect, wholly owned subsidiary of the Company (“Parent Guarantor”).
In addition, on September 27, 2016, the Dutch Issuer issued €450.0 million in aggregate principal amount of 3.750% Euro Senior Unsecured Notes due January 2025 (the “2025 Euro Senior Notes”) for the primary purpose of redeeming the 2021 Euro Senior Notes and the partial prepayment of the 2020 Euro Term Loans. Consistent with the original terms of the 2021 Euro Senior Notes, we extinguished the principal at a redemption price equal to 104.313%.
The indentures governing the New 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) 2024 Dollar Senior Notes
The 2024 Dollar Senior Notes were issued at 99.951% of par, or $2.0 million discount, and are due August 15, 2024. The 2024 Dollar Senior Notes bear interest at 4.875% and are payable semi-annually on February 15 and August 15. We have the option to redeem all or part of the 2024 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated:
Period
2024 Dollar Senior Notes Percentage
2019
103.656
%
2020
102.438
%
2021
101.219
%
2022 and thereafter
100.000
%

Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Dollar Senior Notes) at a redemption price of 104.875% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.
Upon the occurrence of certain events constituting a change of control, holders of the 2024 Dollar Senior Notes have the right to require us to repurchase all or any part of the 2024 Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The 2024 Dollar Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.
The indebtedness issued through the 2024 Dollar Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
(ii) 2024 Euro Senior Notes
The 2024 Euro Senior Notes were issued at par and are due August 15, 2024. The 2024 Euro Senior Notes bear interest at 4.250% and are payable semi-annually on February 15 and August 15. We have the option to redeem all or part of the 2024 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated:
Period
2024 Euro 
Senior Notes Percentage
2019
103.188
%
2020
102.125
%
2021
101.063
%
2022 and thereafter
100.000
%

Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Euro Senior Notes) at a redemption price of 104.250% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.
Upon the occurrence of certain events constituting a change of control, holders of the 2024 Euro Senior Notes have the right to require us to repurchase all or any part of the 2024 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The 2024 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.
The indebtedness issued through the 2024 Euro Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
(iii) 2025 Euro Senior Notes
The 2025 Euro Senior Notes were issued at par and are due January 15, 2025. The 2025 Euro Senior Notes bear interest at 3.750% and are payable semi-annually on January 15 and July 15. We have the option to redeem all or part of the 2025 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after January 15 of the years indicated:
Period
2025 Euro  Senior Notes Percentage
2019
102.813
%
2020
101.875
%
2021
100.938
%
2022 and thereafter
100.000
%

Notwithstanding the foregoing, at any time and from time to time prior to January 15, 2020, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2025 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2025 Euro Senior Notes) at a redemption price of 103.750% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.
Upon the occurrence of certain events constituting a change of control, holders of the 2025 Euro Senior Notes have the right to require us to repurchase all or any part of the 2025 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The 2025 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Dutch Issuer’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.
The indebtedness issued through the 2025 Euro Senior Notes is senior unsecured indebtedness of the Dutch Issuer, is senior in right of payment to all future subordinated indebtedness of the Dutch Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the Dutch Issuer and guarantors. The 2025 Euro Senior Notes are effectively subordinated to any secured indebtedness of the Dutch Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
Future repayments
Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2017.
Remainder of 2017
$
24.2

2018
21.4

2019
20.6

2020
20.5

2021
20.4

Thereafter
3,227.8

 
$
3,334.9


The table above excludes $28.4 million of debt associated with our build-to-suit lease arrangement and our sale-leaseback financing that will not be settled with cash.
Fair Value Accounting
Fair Value Accounting
FAIR VALUE ACCOUNTING
Fair value of financial instruments
Available for sale securities - The fair values of available for sale securities at March 31, 2017 and December 31, 2016 were $4.5 million and $4.4 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 2024 Dollar Senior Notes, 2024 Euro Senior Notes and 2025 Euro Senior Notes at March 31, 2017 were $515.0 million, $382.0 million and $507.1 million, respectively. The fair values at December 31, 2016 were $500.0 million, $363.8 million and $472.2 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 New Senior Notes, these inputs are considered to be Level 2 inputs.
The fair values of the 2023 Dollar Term Loans and the 2023 Euro Term Loans at March 31, 2017 were $1,554.6 million and $430.4 million, respectively. The fair values at December 31, 2016 were $1,560.5 million and $421.8 million, respectively. The estimated fair values of the 2023 Term Loans are based on recent trades, as reported by a third party pricing service. Due to the infrequency of trades of the 2023 Term Loans, these inputs are considered to be Level 2 inputs.
Fair value of contingent consideration
The fair value of contingent consideration associated with acquisitions completed in current and prior years are valued at each balance sheet date, until amounts become payable, with adjustments recorded within selling, general and administrative expenses on the condensed consolidated statement of operations. The fair value of contingent consideration at March 31, 2017 was $12.2 million, which included a $1.7 million gain associated with a fair value adjustment for the three months ended March 31, 2017. The fair value of contingent consideration at December 31, 2016 was $10.0 million. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy.
Derivative Financial Instruments
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs.
Derivative Instruments Qualifying and Designated as Cash Flow Hedges
During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge the variable interest rate exposures related under the Senior Secured Credit Facilities. The interest rate swaps are in place until September 29, 2017.
During the three months ended March 31, 2017, we entered into three 1.5% interest rate caps with aggregate notional amounts totaling $600 million to hedge the variable interest rate exposures on our 2023 Dollar Term Loans. These caps are effective beginning September 30, 2017 through December 31, 2019 and include an aggregate deferred premium of $8.6 million which will be paid through quarterly payments over the term of the cap.
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, 2017
December 31, 2016
Prepaid and other assets:
 
 
Interest rate swaps
$
0.7

$
0.1

Total assets
$
0.7

$
0.1

Other accrued liabilities:
 
 
Interest rate swaps
$
0.4

$
0.8

Interest rate caps
$
1.5

$

Other liabilities
 
 
Interest rate caps
$
0.5

$

Total liabilities
$
2.4

$
0.8


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 period earnings.
The following tables set forth the locations and amounts recognized during the three months ended March 31, 2017 and 2016 for these cash flow hedges.
Derivatives in Cash Flow Hedging
Relationships for the three months ended March 31, 2017:
Net 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
$
(0.6
)
Interest expense, net
$
0.5

Interest expense, net
$
1.6

Derivatives in Cash Flow Hedging
Relationships for the three months ended March 31, 2016:
Net Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gains) Losses 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
2.2

Interest expense, net
$
1.6

Interest expense, net
$
2.4


Derivative Instruments Not Designated as Cash Flow Hedges
We periodically enter into foreign currency forward contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other (income) expense, net in the condensed consolidated statement of operations.
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. Changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.
During the three months ended March 31, 2017, we purchased a 1.25% interest rate cap with a notional amount of €388.0 million to hedge the variable interest rate exposures on our 2023 Euro Term Loans. We paid a premium equal to $0.6 million for the interest rate cap which is effective beginning September 30, 2017 through December 31, 2019. Changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.
The 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, 2017
December 31, 2016
Prepaid and other assets:
 
 
Foreign currency contracts
$
0.7

$
0.1

Other assets
 
 
Interest rate caps
$
0.3

$

Total assets
$
1.0

$
0.1

Other accrued liabilities:
 
 
Foreign currency contracts
$

$
0.5

Total liabilities
$

$
0.5


Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows:
 
 
Three Months Ended March 31,
Derivatives Not Designated as Hedging
Instruments under ASC 815
Location of (Gain) Loss Recognized in
Income on Derivatives
2017
2016
Interest rate caps
Interest expense
$
0.3

$

Foreign currency forward contracts
Other (income) expense, net
$
0.1

$
2.4

Segments
Segments
SEGMENTS
The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information.
We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. 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,
 
2017
2016
Performance Coatings
 
 
Refinish
$
388.6

$
378.7

Industrial
197.8

164.3

Total Net sales Performance Coatings
586.4

543.0

Transportation Coatings
 
 
Light Vehicle
340.0

329.4

Commercial Vehicle
81.4

83.2

Total Net sales Transportation Coatings
421.4

412.6

Total Net sales
$
1,007.8

$
955.6


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, 2017
 
 
 
Net sales (1)
$
586.4

$
421.4

$
1,007.8

Equity in earnings in unconsolidated affiliates
0.1

0.1

0.2

Adjusted EBITDA (2)
116.9

86.2

203.1

Investment in unconsolidated affiliates
2.9

11.3

14.2

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

$
412.6

$
955.6

Equity in earnings in unconsolidated affiliates
0.1

0.1

0.2

Adjusted EBITDA (2)
110.1

84.7

194.8

Investment in unconsolidated affiliates
4.1

11.5

15.6

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. 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, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows:
 
Three Months Ended March 31,
 
2017
2016
Income before income taxes
$
75.8

$
45.2

Interest expense, net
35.8

50.1

Depreciation and amortization
82.4

76.0

EBITDA
194.0

171.3

Foreign exchange remeasurement (gains) losses (a)
(1.2
)
7.5

Long-term employee benefit plan adjustments (b)
0.4

0.6

Termination benefits and other employee related costs (c)
0.8

1.9

Consulting and advisory fees (d)
(0.1
)
3.0

Transactional costs (gains) (e)
(1.0
)

Stock-based compensation (f)
10.4

10.2

Other adjustments (g)
0.2

1.8

Dividends in respect of noncontrolling interest (h)
(0.4
)
(1.5
)
Adjusted EBITDA
$
203.1

$
194.8

(a)
Eliminates foreign exchange (gains) losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures.
(b)
Eliminates the non-cash non-service cost components of long-term employee benefit costs.
(c)
Represents expenses primarily related to employee termination benefits including our initiative to improve the overall cost structure within the European region as well as costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(d)
Represents fees paid to consultants, and associated true-ups to estimates, for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(e)
Represents acquisition-related expenses, including changes in the fair value of contingent consideration, which are not considered indicative of our ongoing operating performance.
(f)
Represents non-cash costs associated with stock-based compensation.
(g)
Represents certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of ongoing operations, including indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments and non-cash fair value inventory adjustments associated with our business combinations.
(h)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
Shareholders' Equity
Shareholders' Equity
SHAREHOLDERS' EQUITY
The following tables present the change in total shareholders’ equity for the three months ended March 31, 2017 and 2016, respectively.
 
Total Axalta
Noncontrolling
Interests
Total
Balance at December 31, 2016
$
1,136.1

$
121.5

$
1,257.6

Net income
64.1

1.8

65.9

Other comprehensive income, net of tax
40.6

0.9

41.5

Recognition of stock-based compensation
10.4


10.4

Exercise of stock options
8.8


8.8

Dividends paid to noncontrolling interests

(0.4
)
(0.4
)
Balance at March 31, 2017
$
1,260.0

$
123.8

$
1,383.8

 
Total Axalta
Noncontrolling
Interests
Total
Balance at December 31, 2015
$
1,073.7

$
67.5

$
1,141.2

Cumulative effect of an accounting change (1)
$
43.9

$

$
43.9

Balance at January 1, 2016
$
1,117.6

$
67.5

$
1,185.1

Net income
30.9

0.9

31.8

Other comprehensive income, net of tax
13.8


13.8

Recognition of stock-based compensation
10.2


10.2

Exercise of stock options
6.7


6.7

Dividends paid to noncontrolling interests

(1.5
)
(1.5
)
Balance at March 31, 2016
$
1,179.2

$
66.9

$
1,246.1


(1) January 1, 2016 balance was adjusted at December 31, 2016 to reflect the impact of the adoption of ASU 2016-09, as discussed in Note 1.
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
Unrealized
Currency
Translation
Adjustments
Pension
Adjustments
Unrealized
Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2016
$
(292.2
)
$
(56.6
)
$
0.4

$
(2.0
)
$
(350.4
)
Current year deferrals to AOCI
39.7



(0.8
)
38.9

Reclassifications from AOCI to Net income

0.6


1.1

1.7

Net Change
39.7

0.6


0.3

40.6

Balance at March 31, 2017
$
(252.5
)
$
(56.0
)
$
0.4

$
(1.7
)
$
(309.8
)

The income tax benefit related to the changes in pension and other long-term employee benefits for the three months ended March 31, 2017 was $0.1 million. The cumulative income tax benefit related to the adjustment for pension at March 31, 2017 was $19.2 million. The income tax provision related to the change in the unrealized loss on derivatives for the three months ended March 31, 2017 was $0.3 million. The cumulative income tax benefit related to the adjustment for unrealized loss on derivatives at March 31, 2017 was $0.8 million.
 
Unrealized
Currency
Translation
Adjustments
Pension
Adjustments
Unrealized Gain
(Loss) on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income (Loss)
Balance at December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

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


(0.4
)
(2.4
)
12.9

Reclassifications from AOCI to Net income

(0.1
)

1.0

0.9

Net Change
15.7

(0.1
)
(0.4
)
(1.4
)
13.8

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

The income tax benefit related to the changes in pension and long-term employee benefits for the three months ended March 31, 2016 was $0.0 million. The cumulative income tax benefit related to the adjustment for pension benefits at March 31, 2016 was $13.4 million. The income tax benefit related to the change in the unrealized loss on derivatives for the three months ended March 31, 2016 was $0.8 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at March 31, 2016 was $2.7 million.
Venezuela
Foreign Currency Disclosure [Text Block]
VENEZUELA
Venezuela Currency Devaluation
As a result of challenging economic conditions, Venezuela’s foreign currency exchange mechanisms have continued to develop which have impacted our Venezuelan operations.
In March 2016, the Venezuelan government enacted additional changes to its foreign currency exchange regime. The changes resulted in a reduction of its three-tiered exchange rate system to two tiers by eliminating the SICAD rate. At March 31, 2016, these changes resulted in the devaluation of the official DIPRO rate (formerly CENCOEX) to 10.0 Venezuelan bolivars to 1.0 U.S. dollar from 6.3 Venezuelan bolivars to 1.0 U.S. dollar, while also creating a replacement floating supplementary market exchange rate, DICOM, which fully replaced SIMADI, valued at 270.5 Venezuelan bolivars to 1.0 U.S. dollar. DICOM is intended to provide limited access to a free market rate of exchange. At both December 31, 2016 and March 31, 2017 the exchange rate for DIPRO remained at 10.0 Venezuelan bolivars to 1.0 U.S. dollar. At December 31, 2016 and March 31, 2017 the exchange rate for DICOM was 673.8 Venezuelan bolivars to 1.0 U.S. dollar and 709.4 Venezuelan bolivars to 1.0 U.S. dollar, respectively.
We believe that significant uncertainty still exists regarding the exchange mechanisms in Venezuela, including how any such mechanisms will operate in the future and the availability of U.S. dollars under each mechanism.
At March 31, 2017, we continue to believe that the DICOM rate is the appropriate rate to use in the remeasurement of the monetary assets and liabilities of our Venezuelan subsidiary, which is a U.S. dollar functional entity.
The impacts of currency exchange attributable to our Venezuelan subsidiary for the three months ended March 31, 2017 and 2016 were losses of $1.5 million and $7.1 million, respectively.
Venezuela Financial Results and Impairment Considerations
With the exception of intercompany inventory purchases, our operations in Venezuela were and are expected to continue to be self-funded. Our Venezuelan operations continue to have the ability to procure raw materials through Axalta subsidiaries, and generate positive cash flow sufficient to fund its operations even with our lower projected results for Venezuela. As a result, we currently do not foresee any material impact on our Venezuelan subsidiary's ability to continue to operate. We have no current need or intention to repatriate Venezuelan earnings and remain committed to the business for the foreseeable future based on our current expectations.
If assumptions regarding our continued demand and ability to successfully implement and sustain price increases differ from actual results, or our ability to control the operations of our Venezuelan subsidiary change as a result of economic uncertainty or political instability, there is a risk that our productive long-lived assets may be further impaired. Additionally, if DICOM continues to weaken, this could result in a material unfavorable impact on our results of operations and financial condition.
At March 31, 2017 and December 31, 2016, our Venezuelan subsidiary had total assets of $73.7 million and $82.7 million, respectively, and total liabilities of $42.5 million and $42.3 million, respectively. Total liabilities includes $34.5 million and $32.8 million of intercompany liabilities designated in U.S. dollars as of March 31, 2017 and December 31, 2016, respectively. At March 31, 2017 and December 31, 2016, total non-monetary assets, net, were $35.6 million and $34.8 million, respectively.
For the three months ended March 31, 2017 and 2016, our Venezuelan subsidiary's net sales represented $1.9 million and $9.9 million of the Company's consolidated net sales, respectively. For the three months ended March 31, 2017 and 2016, our Venezuelan subsidiary represented a loss of $2.0 million and income of $3.5 million of our consolidated income from operations, respectively.
Subsequent Events
Subsequent Events
SUBSEQUENT EVENTS
In April 2017 we announced our entrance into a definitive agreement with The Valspar Corporation ("Valspar") and The Sherwin-Williams Company to acquire the assets related to Valspar’s North American Industrial Wood Coatings business for $420.0 million, expected to be funded through a committed additional tranche of the Senior Secured Credit Facilities. In 2016, the business had revenues of approximately $225.0 million.
Recent Accounting Guidance (Policies)
New Accounting Pronouncements, Policy
Accounting Guidance Issued But Not Yet Adopted
In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.
In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified on our reporting units.
In February 2016, the FASB issued ASU 2016-02, "Leases", which requires lessees to recognize the assets and liabilities arising from all leases (both finance and operating) on the balance sheet. In addition to this main provision, this standard included a number of additional changes to lease accounting. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted prior to this date. We are in the process of assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows. At a minimum, total assets and total liabilities will increase in the period the ASU is adopted.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the guidance that an entity should use related to revenue recognition. This standard was effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies will be allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to this date.
In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," which provides clarification around identifying performance obligations and the treatment of different licensing contracts. Additional standards related to revenue from contracts with customers have been issued during 2016 to provide narrow scope improvements and clarification. We have continued to assess the potential impact of the revised guidance on our financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters.
Goodwill and Identifiable Intangible Assets (Tables)
The following table shows changes in the carrying amount of goodwill from December 31, 2016 to March 31, 2017 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
At December 31, 2016
$
886.5

$
74.5

$
961.0

Goodwill from acquisitions
33.2


33.2

Foreign currency translation
20.5

1.4

21.9

At March 31, 2017
$
940.2

$
75.9

$
1,016.1

The following tables summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
March 31, 2017
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
428.5

$
(166.7
)
$
261.8

10.1
Trademarks - indefinite-lived
278.5


278.5

Indefinite
Trademarks - definite-lived
56.9

(12.6
)
44.3

14.2
Customer relationships
700.8

(135.9
)
564.9

18.4
Non-compete agreements and other
2.5

(0.5
)
2.0

4.3
Total
$
1,467.2

$
(315.7
)
$
1,151.5

 
December 31, 2016
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
417.1

$
(153.6
)
$
263.5

10.2
Trademarks - indefinite-lived
273.2


273.2

Indefinite
Trademarks - definite-lived
55.0

(11.4
)
43.6

14.8
Customer relationships
672.6

(123.3
)
549.3

18.7
Non-compete agreements and other
2.4

(1.7
)
0.7

4.6
Total
$
1,420.3

$
(290.0
)
$
1,130.3

 
The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2017 and each of the succeeding five years is:
Remainder of 2017
$
65.6

2018
$
87.2

2019
$
86.1

2020
$
84.7

2021
$
83.8

2022
$
77.3

Restructuring (Tables)
Restructuring and Related Costs
The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2016 to March 31, 2017:
 
2017 Activity
Balance at December 31, 2016
$
66.1

Expense recorded
1.0

Payments made
(7.6
)
Foreign currency translations
1.8

Balance at March 31, 2017
$
61.3

Long-term Employee Benefits (Tables)
Schedule of Net Benefit Costs
The following table sets forth the components of net periodic benefit cost for the three months ended March 31, 2017 and 2016.
 
Three Months Ended March 31,
 
2017
2016
Components of net periodic benefit cost:
 
 
Net periodic benefit cost:
 
 
Service cost
$
2.1

$
2.5

Interest cost
3.4

3.9

Expected return on plan assets
(3.5
)
(3.2
)
Amortization of actuarial (gain) loss, net
0.5

(0.1
)
Net periodic benefit cost
$
2.5

$
3.1

Stock-based Compensation (Tables)
A summary of award activity by type for the three months ended March 31, 2017 is presented below.
Stock Options
Awards/Units
(in millions)
Weighted-
Average
Exercise
Price
Aggregate
Intrinsic
Value
 (in millions)
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at January 1, 2017
9.6

$
14.40

 
 
Granted
0.9

$
29.48

 
 
Exercised
(0.9
)
$
10.09

 
 
Forfeited
(0.1
)
$
23.38

 
 
Outstanding at March 31, 2017
9.5

$
16.08

 
 
Vested and expected to vest at March 31, 2017
9.5

$
16.08

$
153.7

7.12
Exercisable at March 31, 2017
7.2

$
12.21

$
144.8

6.53
Restricted Stock Awards and Restricted Stock Units
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2017
2.3

$
29.18

Granted
0.6

29.48

Vested
(0.3
)
23.36

Forfeited


Outstanding at March 31, 2017
2.6

$
29.86

Performance Stock Awards and Performance Share Units
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2017
0.3

$
27.74

Granted
0.3

38.11

Vested


Forfeited


Outstanding at March 31, 2017
0.6

$
31.08

Other Expense, Net (Tables)
Schedule of Other Nonoperating Income (Expense)
 
Three Months Ended March 31,
 
2017
2016
Foreign exchange (gains) losses, net
$
(1.2
)
$
7.5

Other miscellaneous expense (income), net
(0.4
)
0.5

Total
$
(1.6
)
$
8.0

Income Taxes (Tables)
Schedule of Effective Income Tax Rate Reconciliation
Our effective income tax rates for the three months ended March 31, 2017 and 2016 are as follows:
 
Three Months Ended March 31,
 
2017
2016
Effective Tax Rate
13.1
%
29.6
%
Earnings (Loss) Per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
A reconciliation of our basic and diluted net income per common share is as follows:
 
Three Months Ended March 31,
(In millions, except per share data)
2017
2016(1)
Net income attributable to controlling interests
$
64.1

$
30.9

Basic weighted average shares outstanding
239.8

237.1

Diluted weighted average shares outstanding
246.1

243.4

Earnings per common share:
 
 
Basic net income per share
$
0.27

$
0.13

Diluted net income per share
$
0.26

$
0.13

(1) Net income per common share for the three months ended March 31, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 1, which increased diluted weighted average shares outstanding by 1.8 million shares.
Accounts and Notes Receivable, Net (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable
 
March 31, 2017
December 31, 2016
Accounts receivable—trade, net
$
735.2

$
640.4

Notes receivable
48.4

68.7

Other
88.6

92.8

Total
$
872.2

$
801.9

Inventories (Tables)
Schedule of Inventory, Current
 
March 31, 2017
December 31, 2016
Finished products
$
326.2

$
315.2

Semi-finished products
93.6

87.5

Raw materials and supplies
139.3

127.0

Total
$
559.1

$
529.7

Property, Plant and Equipment, Net (Tables)
Property, Plant and Equipment
 
March 31, 2017
December 31, 2016
Property, plant and equipment
$
2,005.1

$
1,933.0

Accumulated depreciation
(670.7
)
(617.3
)
Property, plant and equipment, net
$
1,334.4

$
1,315.7

Borrowings (Tables)
Borrowings are summarized as follows:
 
March 31, 2017
December 31, 2016
2023 Dollar Term Loans
$
1,541.1

$
1,545.0

2023 Euro Term Loans
428.3

417.6

2024 Dollar Senior Notes
500.0

500.0

2024 Euro Senior Notes
359.6

349.7

2025 Euro Senior Notes
483.0

469.8

Short-term and other borrowings
51.3

39.8

Unamortized original issue discount
(9.3
)
(10.0
)
Unamortized deferred financing costs
(46.7
)
(48.0
)

$
3,307.3

$
3,263.9

Less:


Short term borrowings
$
9.2

$
8.3

Current portion of long-term borrowings
19.8

19.6

Long-term debt
$
3,278.3

$
3,236.0

Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2017.
Remainder of 2017
$
24.2

2018
21.4

2019
20.6

2020
20.5

2021
20.4

Thereafter
3,227.8

 
$
3,334.9

We have the option to redeem all or part of the 2024 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated:
Period
2024 Dollar Senior Notes Percentage
2019
103.656
%
2020
102.438
%
2021
101.219
%
2022 and thereafter
100.000
%
We have the option to redeem all or part of the 2024 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated:
Period
2024 Euro 
Senior Notes Percentage
2019
103.188
%
2020
102.125
%
2021
101.063
%
2022 and thereafter
100.000
%
We have the option to redeem all or part of the 2025 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after January 15 of the years indicated:
Period
2025 Euro  Senior Notes Percentage
2019
102.813
%
2020
101.875
%
2021
100.938
%
2022 and thereafter
100.000
%
Derivative Financial Instruments (Tables)
The following tables set forth the locations and amounts recognized during the three months ended March 31, 2017 and 2016 for these cash flow hedges.
Derivatives in Cash Flow Hedging
Relationships for the three months ended March 31, 2017:
Net 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
$
(0.6
)
Interest expense, net
$
0.5

Interest expense, net
$
1.6

Derivatives in Cash Flow Hedging
Relationships for the three months ended March 31, 2016:
Net Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gains) Losses 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
2.2

Interest expense, net
$
1.6

Interest expense, net
$
2.4

Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows:
 
 
Three Months Ended March 31,
Derivatives Not Designated as Hedging
Instruments under ASC 815
Location of (Gain) Loss Recognized in
Income on Derivatives
2017
2016
Interest rate caps
Interest expense
$
0.3

$

Foreign currency forward contracts
Other (income) expense, net
$
0.1

$
2.4

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, 2017
December 31, 2016
Prepaid and other assets:
 
 
Interest rate swaps
$
0.7

$
0.1

Total assets
$
0.7

$
0.1

Other accrued liabilities:
 
 
Interest rate swaps
$
0.4

$
0.8

Interest rate caps
$
1.5

$

Other liabilities
 
 
Interest rate caps
$
0.5

$

Total liabilities
$
2.4

$
0.8

The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheet:
 
March 31, 2017
December 31, 2016
Prepaid and other assets:
 
 
Foreign currency contracts
$
0.7

$
0.1

Other assets
 
 
Interest rate caps
$
0.3

$

Total assets
$
1.0

$
0.1

Other accrued liabilities:
 
 
Foreign currency contracts
$

$
0.5

Total liabilities
$

$
0.5

Segments (Tables)
Our business serves four end-markets globally as follows:
 
Three Months Ended March 31,
 
2017
2016
Performance Coatings
 
 
Refinish
$
388.6

$
378.7

Industrial
197.8

164.3

Total Net sales Performance Coatings
586.4

543.0

Transportation Coatings
 
 
Light Vehicle
340.0

329.4

Commercial Vehicle
81.4

83.2

Total Net sales Transportation Coatings
421.4

412.6

Total Net sales
$
1,007.8

$
955.6

 
Performance
Coatings
Transportation
Coatings
Total
For the Three Months Ended March 31, 2017
 
 
 
Net sales (1)
$
586.4

$
421.4

$
1,007.8

Equity in earnings in unconsolidated affiliates
0.1

0.1

0.2

Adjusted EBITDA (2)
116.9

86.2

203.1

Investment in unconsolidated affiliates
2.9

11.3

14.2

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

$
412.6

$
955.6

Equity in earnings in unconsolidated affiliates
0.1

0.1

0.2

Adjusted EBITDA (2)
110.1

84.7

194.8

Investment in unconsolidated affiliates
4.1

11.5

15.6

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. 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, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows:
Reconciliation of Adjusted EBITDA to income before income taxes follows:
 
Three Months Ended March 31,
 
2017
2016
Income before income taxes
$
75.8

$
45.2

Interest expense, net
35.8

50.1

Depreciation and amortization
82.4

76.0

EBITDA
194.0

171.3

Foreign exchange remeasurement (gains) losses (a)
(1.2
)
7.5

Long-term employee benefit plan adjustments (b)
0.4

0.6

Termination benefits and other employee related costs (c)
0.8

1.9

Consulting and advisory fees (d)
(0.1
)
3.0

Transactional costs (gains) (e)
(1.0
)

Stock-based compensation (f)
10.4

10.2

Other adjustments (g)
0.2

1.8

Dividends in respect of noncontrolling interest (h)
(0.4
)
(1.5
)
Adjusted EBITDA
$
203.1

$
194.8

(a)
Eliminates foreign exchange (gains) losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures.
(b)
Eliminates the non-cash non-service cost components of long-term employee benefit costs.
(c)
Represents expenses primarily related to employee termination benefits including our initiative to improve the overall cost structure within the European region as well as costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(d)
Represents fees paid to consultants, and associated true-ups to estimates, for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(e)
Represents acquisition-related expenses, including changes in the fair value of contingent consideration, which are not considered indicative of our ongoing operating performance.
(f)
Represents non-cash costs associated with stock-based compensation.
(g)
Represents certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of ongoing operations, including indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments and non-cash fair value inventory adjustments associated with our business combinations.
(h)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
Shareholders' Equity (Tables)
Schedule of Stockholders Equity
The following tables present the change in total shareholders’ equity for the three months ended March 31, 2017 and 2016, respectively.
 
Total Axalta
Noncontrolling
Interests
Total
Balance at December 31, 2016
$
1,136.1

$
121.5

$
1,257.6

Net income
64.1

1.8

65.9

Other comprehensive income, net of tax
40.6

0.9

41.5

Recognition of stock-based compensation
10.4


10.4

Exercise of stock options
8.8


8.8

Dividends paid to noncontrolling interests

(0.4
)
(0.4
)
Balance at March 31, 2017
$
1,260.0

$
123.8

$
1,383.8

 
Total Axalta
Noncontrolling
Interests
Total
Balance at December 31, 2015
$
1,073.7

$
67.5

$
1,141.2

Cumulative effect of an accounting change (1)
$
43.9

$

$
43.9

Balance at January 1, 2016
$
1,117.6

$
67.5

$
1,185.1

Net income
30.9

0.9

31.8

Other comprehensive income, net of tax
13.8


13.8

Recognition of stock-based compensation
10.2


10.2

Exercise of stock options
6.7


6.7

Dividends paid to noncontrolling interests

(1.5
)
(1.5
)
Balance at March 31, 2016
$
1,179.2

$
66.9

$
1,246.1


(1) January 1, 2016 balance was adjusted at December 31, 2016 to reflect the impact of the adoption of ASU 2016-09, as discussed in Note 1.
Accumulated Other Comprehensive Income (Loss) (Tables)
Schedule of Accumulated Other Comprehensive Income
 
Unrealized
Currency
Translation
Adjustments
Pension
Adjustments
Unrealized Gain
(Loss) on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income (Loss)
Balance at December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

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


(0.4
)
(2.4
)
12.9

Reclassifications from AOCI to Net income

(0.1
)

1.0

0.9

Net Change
15.7

(0.1
)
(0.4
)
(1.4
)
13.8

Balance at March 31, 2016
$
(217.1
)
$
(33.5
)
$
(0.3
)
$
(4.6
)
$
(255.5
)
 
Unrealized
Currency
Translation
Adjustments
Pension
Adjustments
Unrealized
Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2016
$
(292.2
)
$
(56.6
)
$
0.4

$
(2.0
)
$
(350.4
)
Current year deferrals to AOCI
39.7



(0.8
)
38.9

Reclassifications from AOCI to Net income

0.6


1.1

1.7

Net Change
39.7

0.6


0.3

40.6

Balance at March 31, 2017
$
(252.5
)
$
(56.0
)
$
0.4

$
(1.7
)
$
(309.8
)
Basis of Presentation of the Condensed Consolidated Financial Statements Basis of Presentation of the Condensed Consolidated Financial Statements (Details) (New Accounting Pronouncement, Early Adoption, Effect [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Accounting Standards Update 2016-18 [Member]
Mar. 31, 2016
Accounting Standards Update 2016-09 [Member]
Mar. 31, 2016
Accounting Standards Update 2016-09 [Member]
Other Nonoperating Income (Expense) [Member]
Dec. 31, 2016
Accounting Standards Update 2016-09 [Member]
Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
Net cash provided by (used in) financing activities
 
$ (4.7)
 
 
Increase (decrease) in restricted cash
(0.1)
 
 
 
Effect of adoption, quantification
 
 
1.2 
(43.9)
Net cash provided by (used in) operating activities
 
$ 4.7 
 
 
Goodwill and Identifiable Intangible Assets - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Goodwill [Line Items]
 
 
Definite-lived intangible assets acquired
$ 22.2 
 
Fair value of consideration paid for acquisitions
62.6 
 
Contingent consideration fair value
12.2 
10.0 
2017 Acquisitions [Member]
 
 
Goodwill [Line Items]
 
 
Contingent consideration fair value
5.7 
 
Technology-Based Intangible Assets [Member]
 
 
Goodwill [Line Items]
 
 
Definite-lived intangible assets acquired
4.5 
 
Trademarks [Member]
 
 
Goodwill [Line Items]
 
 
Definite-lived intangible assets acquired
1.2 
 
Customer Relationships [Member]
 
 
Goodwill [Line Items]
 
 
Definite-lived intangible assets acquired
14.9 
 
Noncompete Agreements [Member]
 
 
Goodwill [Line Items]
 
 
Definite-lived intangible assets acquired
$ 1.6 
 
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Goodwill [Roll Forward]
 
Goodwill, beginning balance
$ 961.0 
Goodwill from acquisitions
33.2 
Foreign currency translation
21.9 
Goodwill, ending balance
1,016.1 
Performance Coatings [Member]
 
Goodwill [Roll Forward]
 
Goodwill, beginning balance
886.5 
Goodwill from acquisitions
33.2 
Foreign currency translation
20.5 
Goodwill, ending balance
940.2 
Transportation Coatings [Member]
 
Goodwill [Roll Forward]
 
Goodwill, beginning balance
74.5 
Goodwill from acquisitions
Foreign currency translation
1.4 
Goodwill, ending balance
$ 75.9 
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
$ 1,467.2 
$ 1,420.3 
Accumulated Amortization
(315.7)
(290.0)
Net Book Value, definite-lived
1,151.5 
1,130.3 
Trademarks [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Net Book Value, indefinite-lived
278.5 
273.2 
Technology-Based Intangible Assets [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
428.5 
417.1 
Accumulated Amortization
(166.7)
(153.6)
Net Book Value, definite-lived
261.8 
263.5 
Weighted average amortization periods (years)
10 years 1 month 13 days 
10 years 2 months 
Trademarks [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
56.9 
55.0 
Accumulated Amortization
(12.6)
(11.4)
Net Book Value, definite-lived
44.3 
43.6 
Weighted average amortization periods (years)
14 years 1 month 27 days 
14 years 8 months 31 days 
Customer Relationships [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
700.8 
672.6 
Accumulated Amortization
(135.9)
(123.3)
Net Book Value, definite-lived
564.9 
549.3 
Weighted average amortization periods (years)
18 years 4 months 20 days 
18 years 8 months 
Noncompete Agreements [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
2.5 
2.4 
Accumulated Amortization
(0.5)
(1.7)
Net Book Value, definite-lived
$ 2.0 
$ 0.7 
Weighted average amortization periods (years)
4 years 3 months 7 days 
4 years 7 months 
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
 
Remainder of 2017
$ 65.6 
2018
87.2 
2019
86.1 
2020
84.7 
2021
83.8 
2022
$ 77.3 
Restructuring - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Minimum [Member]
Mar. 31, 2017
Maximum [Member]
Dec. 31, 2017
Scenario, Forecast [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
Restructuring costs
$ 1.0 
$ 0.5 
 
 
 
Payment term (in months)
 
 
12 months 
15 months 
 
Accelerated depreciation
$ 2.2 
 
 
 
$ 7.6 
Restructuring - Restructuring Reserve (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Restructuring Reserve [Roll Forward]
 
 
Beginning balance
$ 66.1 
 
Expense recorded
1.0 
0.5 
Payments made
(7.6)
 
Foreign currency translations
1.8 
 
Ending balance
$ 61.3 
 
Commitments and Contingencies (Details) (Build To Suit Lease [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Build To Suit Lease [Member]
 
Loss Contingencies [Line Items]
 
Build-to-suit construction in progress
$ 21.9 
Total estimated cost of build-to-suit construction in progress
$ 37.8 
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Pension Plan [Member]
 
 
Net periodic benefit cost:
 
 
Service cost
$ 2.1 
$ 2.5 
Interest cost
3.4 
3.9 
Expected return on plan assets
(3.5)
(3.2)
Amortization of actuarial (gain) loss, net
0.5 
(0.1)
Net periodic benefit (gain) cost
$ 2.5 
$ 3.1 
Stock-based Compensation - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock-based compensation (f)
$ 10.4 
$ 10.2 
Tax benefit from compensation expense
2.9 
3.9 
Cash received from exercise of stock options
8.8 
 
Tax benefit from exercise of stock options
5.3 
1.2 
Compensation not yet recognized
9.4 
 
Performance Shares [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Period for recognition of compensation not yet recognized
2 years 6 months 11 days 
 
Compensation not yet recognized
16.2 
 
Employee Stock Option [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Period for recognition of compensation not yet recognized
2 years 5 months 8 days 
 
Restricted Stock and Restricted Stock Units [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Period for recognition of compensation not yet recognized
2 years 2 months 19 days 
 
Tax benefit realized from exercise of restricted stock
0.5 
 
Compensation not yet recognized
$ 32.9 
 
Stock-based Compensation - Schedule of Stock Options Roll Forward (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Awards/Units (in millions)
 
Beginning balance
9.6 
Granted
0.9 
Exercised
(0.9)
Forfeited
(0.1)
Ending balance
9.5 
Weighted- Average Exercise Price
 
Beginning balance (in dollars per share)
$ 14.40 
Granted (in dollars per share)
$ 29.48 
Exercised (in dollars per share)
$ 10.09 
Forfeited (in dollars per share)
$ 23.38 
Ending balance (in dollars per share)
$ 16.08 
Vested and Expected to Vest
 
Vested and expected to vest, shares
9.5 
Vested and expected to vest, weighted average exercise price (in dollars per share)
$ 16.08 
Vested and expected to vest, aggregate intrinsic value
$ 153.7 
Vested and expected to vest, weighted average remaining contractual term
7 years 1 month 14 days 
Exercisable
 
Exercisable, shares
7.2 
Exercisable, weighted average exercise price (in dollars per share)
$ 12.21 
Exercisable, aggregate intrinsic value
$ 144.8 
Exercisable, weighted average remaining contractual term
6 years 6 months 11 days 
Stock-based Compensation - Schedule of Share-based Compensation, Restricted Stock and Restricted Units Activity (Details) (Restricted Stock and Restricted Stock Units [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Restricted Stock and Restricted Stock Units [Member]
 
Awards (millions)
 
Beginning balance
2.3 
Granted
0.6 
Vested
(0.3)
Forfeited
Ending balance
2.6 
Weighted-Average Fair Value
 
Beginning balance (weighted average fair value)
$ 29.18 
Granted (weighted average fair value)
$ 29.48 
Vested (weighted average fair value)
$ 23.36 
Forfeited (weighted average fair value)
$ 0.00 
Ending balance (weighted average fair value)
$ 29.86 
Stock-based Compensation - Schedule of Share-based Compensation, Performance Grants (Details) (Performance Shares [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Performance Shares [Member]
 
Awards (millions)
 
Beginning balance
0.3 
Granted
0.3 
Vested
Forfeited
Ending balance
0.6 
Weighted-Average Fair Value
 
Beginning balance (weighted average fair value)
$ 27.74 
Granted (weighted average fair value)
$ 38.11 
Vested (weighted average fair value)
$ 0.00 
Forfeited (weighted average fair value)
$ 0.00 
Ending balance (weighted average fair value)
$ 31.08 
Other Expense, Net - Schedule of Other Non-operating Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Other Income and Expenses [Abstract]
 
 
Foreign exchange (gains) losses, net
$ (1.2)
$ 7.5 
Other miscellaneous expense (income), net
(0.4)
0.5 
Total
$ (1.6)
$ 8.0 
Other Expense, Net - Additional Information (Details) (Subsidiaries [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Subsidiaries [Member]
 
 
Other Income Expense [Line Items]
 
 
Exchange loss
$ 1.5 
$ 7.1 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Operating Loss Carryforwards [Line Items]
 
 
Share-based Compensation, Tax Benefit Realized from Exercises and Vesting of Share-based Awards
$ 5.8 
 
Tax benefit from exercise of stock options and restricted stock
$ 5.3 
$ 1.2 
Effective income tax rate, percent
13.10% 
29.60% 
Accounting Standards Update 2016-09 [Member]
 
 
Operating Loss Carryforwards [Line Items]
 
 
Effective income tax rate reconciliation, percent reduction
 
2.70% 
Effective income tax rate, percent
 
32.30% 
Earnings (Loss) Per Common Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
Net income attributable to controlling interests
$ 64.1 
$ 30.9 
Basic weighted average shares outstanding (in shares)
239.8 
237.1 
Diluted weighted average shares outstanding (in shares)
246.1 
243.4 
Earnings per common share:
 
 
Basic net income (loss) per share (dollars per share)
$ 0.27 
$ 0.13 
Diluted net income (loss) per share (dollars per share)
$ 0.26 
$ 0.13 
Antidilutive securities excluded from computation of earnings per share (in shares)
1.6 
1.9 
Adjustments for New Accounting Pronouncement [Member]
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
Diluted weighted average shares outstanding (in shares)
1.8 
 
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Receivables [Abstract]
 
 
Accounts receivable—trade, net
$ 735.2 
$ 640.4 
Notes receivable
48.4 
68.7 
Other
88.6 
92.8 
Total
$ 872.2 
$ 801.9 
Accounts and Notes Receivable, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Receivables [Abstract]
 
 
 
Allowance for doubtful accounts
$ 13.9 
 
$ 13.7 
Bad debt expense
$ 0.7 
$ 0.1 
 
Inventories - Schedule of Inventory (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]
 
 
Finished products
$ 326.2 
$ 315.2 
Semi-finished products
93.6 
87.5 
Raw materials and supplies
139.3 
127.0 
Inventories
$ 559.1 
$ 529.7 
Inventories - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]
 
 
Stores and supplies inventories
$ 21.4 
$ 20.2 
Property, Plant and Equipment, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Property, Plant and Equipment [Abstract]
 
 
Depreciation
$ 43.3 
$ 41.7 
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Abstract]
 
 
Property, plant and equipment
$ 2,005.1 
$ 1,933.0 
Accumulated depreciation
(670.7)
(617.3)
Property, plant and equipment, net
$ 1,334.4 
$ 1,315.7 
Borrowings - Schedule of Debt (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Aug. 16, 2016
Debt Instrument [Line Items]
 
 
 
Short-term and Other Borrowings
$ 51.3 
$ 39.8 
 
Unamortized original issue discount
(9.3)
(10.0)
 
Unamortized deferred financing costs
(46.7)
(48.0)
 
Total borrowings
3,307.3 
3,263.9 
 
Short term borrowings
9.2 
8.3 
 
Current portion of long-term borrowings
19.8 
19.6 
 
Long-term borrowings
3,278.3 
3,236.0 
 
2023 Dollar Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Term loan
1,541.1 
1,545.0 
 
2023 Euro Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Term loan
428.3 
417.6 
 
2024 Dollar Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
500.0 
500.0 
 
Unamortized original issue discount
 
 
(2.0)
2024 Euro Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
359.6 
349.7 
 
2025 Euro Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
$ 483.0 
$ 469.8 
 
Borrowings - Senior Secured Credit Facilities (Details)
0 Months Ended 12 Months Ended 0 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended
Dec. 15, 2016
USD ($)
Aug. 16, 2016
Aug. 1, 2016
Jun. 30, 2015
Mar. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Aug. 1, 2016
Revolving Credit Facility [Member]
Mar. 31, 2017
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2016
Revolving Credit Facility [Member]
USD ($)
Aug. 1, 2016
Revolving Credit Facility [Member]
Jul. 31, 2016
Revolving Credit Facility [Member]
Mar. 31, 2016
Senior Secured Credit Facilities [Member]
USD ($)
Aug. 1, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Revolving Credit Facility [Member]
Feb. 3, 2014
Senior Secured Credit Facility, Base Rate Loans [Member]
Revolving Credit Facility [Member]
Aug. 1, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Aug. 1, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Federal Funds Effective Swap Rate [Member]
Revolving Credit Facility [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Mar. 31, 2017
Dollar Term Loan Due 2020 [Member]
Jun. 30, 2015
Dollar Term Loan Due 2020 [Member]
Dec. 15, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Base Rate [Member]
Dec. 15, 2016
2023 Dollar Term Loan [Member]
Dec. 15, 2016
2023 Dollar Term Loan [Member]
USD ($)
Dec. 15, 2016
2023 Dollar Term Loan [Member]
Eurocurrency Rate Loans [Member]
Dec. 15, 2016
2023 Dollar Term Loan [Member]
Interest Rate Floor [Member]
Dec. 15, 2016
2023 Dollar Term Loan [Member]
Base Rate [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Jun. 30, 2015
Euro Term Loan Due 2020 [Member]
Dec. 15, 2016
Euro Term Loan Due 2020 [Member]
EUR (€)
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
EUR (€)
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Dec. 15, 2016
2023 Euro Term Loan [Member]
EUR (€)
Dec. 15, 2016
2023 Euro Term Loan [Member]
Eurocurrency Rate Loans [Member]
Dec. 15, 2016
2023 Euro Term Loan [Member]
Base Rate [Member]
Aug. 16, 2016
Senior Secured Credit Facilities [Member]
Revolving Credit Facility [Member]
Feb. 3, 2014
Senior Secured Credit Facilities [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facilities [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Aug. 1, 2016
Senior Secured Credit Facilities [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, long-term and short-term, combined amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,775,300,000 
$ 2,282,800,000 
 
 
 
 
$ 1,545,000,000 
 
 
 
 
 
€ 199,000,000 
€ 397,000,000 
 
€ 400,000,000 
 
 
 
 
 
 
Debt instrument, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
1.75% 
2.50% 
 
1.00% 
0.50% 
 
 
2.75% 
 
 
3.00% 
1.00% 
2.00% 
 
 
2.50% 
0.75% 
1.50% 
 
3.00% 
 
 
3.25% 
 
2.25% 
0.75% 
2.75% 
3.50% 
0.00% 
 
Debt instrument covenant maximum consolidated leverage ratio
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, effective percentage rate range, minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument periodic payment principal percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
400,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from maturities, prepayments and calls of other investments (more than)
75,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage on excess cash flow for mandatory prepayments of debt
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Decrease in percentage on excess cash flow for mandatory prepayments of debt
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage on first lien leverage ratio for mandatory prepayments of debt
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First lien leverage ratio upper limit
4.25 
 
3.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First lien leverage ratio lower limit
3.50 
5.50 
2.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized deferred financing costs
 
 
 
 
46,700,000 
48,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized original issue discount
 
 
 
 
(9,300,000)
(10,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of debt discount (premium)
 
 
 
 
 
 
 
 
 
 
 
800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum amount outstanding during period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding, amount
 
 
 
 
 
 
 
21,300,000 
21,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
$ 378,700,000 
$ 378,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, maturity date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 01, 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Expiration Period
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Accelerated Period Prior to Expiration Period
 
 
 
 
 
 
91 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Percent of Credit Facility Outstanding for Accelerated Maturity
 
 
 
 
 
 
 
 
 
30.00% 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Percent Not Cash Collateralized
 
 
 
 
 
 
 
 
 
103.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Basis Spread Reduced On Variable Rate, Step-down Percent for 3.00:1.00 Leverage Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
Debt Instrument, Basis Spread Reduced On Variable Rate, Step-down Percent for 2.50:1.00 Leverage Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.25% 
Borrowings - Senior Notes (Details)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Mar. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Feb. 1, 2013
7.375% Senior Unsecured Notes Due 2021 [Member]
Feb. 1, 2013
5.750% Senior Secured Notes Due 2021 [Member]
Mar. 31, 2016
Senior Notes [Member]
USD ($)
Aug. 16, 2016
2024 Dollar Senior Notes [Member]
Aug. 16, 2016
2024 Euro Senior Notes [Member]
Aug. 16, 2016
2024 Euro Senior Notes [Member]
EUR (€)
Feb. 1, 2013
2021 Dollar Senior Notes [Member]
USD ($)
Feb. 1, 2013
2021 Euro Senior Notes [Member]
EUR (€)
Aug. 16, 2016
2024 Dollar Senior Notes [Member]
Aug. 16, 2016
2024 Dollar Senior Notes [Member]
USD ($)
Mar. 31, 2017
2025 Euro Senior Notes [Member]
Sep. 27, 2016
2025 Euro Senior Notes [Member]
EUR (€)
Aug. 16, 2016
Debt Instrument, Redemption, Period One [Member]
2021 Dollar Senior Notes [Member]
Sep. 30, 2016
Debt Instrument, Redemption, Period One [Member]
Euro Senior Notes [Member]
Mar. 31, 2017
Debt Instrument, Redemption, Period One [Member]
2024 Dollar Senior Notes [Member]
Aug. 16, 2016
Any Time Prior to August 15, 2019 [Member]
2024 Euro Senior Notes [Member]
Aug. 16, 2016
Any Time Prior to August 15, 2019 [Member]
2024 Dollar Senior Notes [Member]
Mar. 31, 2017
Any Time Prior to January 15, 2020 [Member]
2025 Euro Senior Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
40.00% 
40.00% 
Debt instrument, face amount
 
 
 
 
 
 
 
€ 335.0 
$ 750.0 
€ 250.0 
 
$ 500.0 
 
€ 450.0 
 
 
 
 
 
 
Debt instrument, interest rate, stated percentage
 
 
 
 
 
 
 
4.25% 
7.375% 
5.75% 
 
4.875% 
 
3.75% 
 
 
 
 
 
 
Debt instrument maturity year
 
 
2021 
2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of financing costs
 
 
 
 
1.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, redemption price, percentage
 
 
 
 
 
 
104.25% 
 
 
 
104.875% 
 
103.75% 
 
105.531% 
104.313% 
103.656% 
 
 
 
Debt Instrument, Redemption, Percent of Principal Required to be Outstanding
 
 
 
 
 
 
50.00% 
 
 
 
50.00% 
 
50.00% 
 
 
 
 
 
 
 
Debt Instrument, Redemption Price, Percentage if Change in Control Occurs
 
 
 
 
 
101.00% 
101.00% 
 
 
 
 
 
101.00% 
 
 
 
 
 
 
 
Debt Instrument, Discount, Percent of Par
 
 
 
 
 
 
 
 
 
 
 
99.951% 
 
 
 
 
 
 
 
 
Debt Instrument, Unamortized Discount
$ 9.3 
$ 10.0 
 
 
 
 
 
 
 
 
 
$ 2.0 
 
 
 
 
 
 
 
 
Borrowings - Debt Instrument Redemption (Details)
3 Months Ended
Mar. 31, 2017
2024 Dollar Senior Notes [Member] |
2019 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
103.656% 
2024 Dollar Senior Notes [Member] |
2020 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
102.438% 
2024 Dollar Senior Notes [Member] |
2021 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
101.219% 
2024 Dollar Senior Notes [Member] |
2022 and thereafter [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.00% 
2024 Euro Senior Notes [Member] |
2019 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
103.188% 
2024 Euro Senior Notes [Member] |
2020 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
102.125% 
2024 Euro Senior Notes [Member] |
2021 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
101.063% 
2024 Euro Senior Notes [Member] |
2022 and thereafter [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.00% 
2025 Euro Senior Notes [Member] |
2019 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
102.813% 
2025 Euro Senior Notes [Member] |
2020 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
101.875% 
2025 Euro Senior Notes [Member] |
2021 [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.938% 
2025 Euro Senior Notes [Member] |
2022 and thereafter [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.00% 
Borrowings - Schedule of Maturities of Long-term Debt (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Debt Instrument [Line Items]
 
Remainder of 2017
$ 24.2 
2018
21.4 
2019
20.6 
2020
20.5 
2021
20.4 
Thereafter
3,227.8 
Long-term debt
3,334.9 
Build-to-suit Lease and Sale-leaseback Financing [Member]
 
Debt Instrument [Line Items]
 
Built-to-suit arrangement debt
$ 28.4 
Fair Value Accounting (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities
$ 4.5 
$ 4.4 
Contingent consideration fair value
12.2 
10.0 
Adjustments to contingent consideration
1.7 
 
2024 Dollar Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
515.0 
500.0 
2024 Euro Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
382.0 
363.8 
2025 Euro Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
507.1 
472.2 
2023 Dollar Term Loan [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
1,554.6 
1,560.5 
2023 Euro Term Loan [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
$ 430.4 
$ 421.8 
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) (Fair Value, Inputs, Level 2 [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2017
Dec. 31, 2016
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
$ 0.7 
$ 0.1 
Derivative liability
2.4 
0.8 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0.7 
0.1 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
0.4 
0.8 
Designated as Hedging Instrument [Member] |
Interest Rate Cap [Member] |
Other Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
0.5 
Designated as Hedging Instrument [Member] |
Interest Rate Cap [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
1.5 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
1.0 
0.1 
Derivative liability
0.5 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0.7 
0.1 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
0.5 
Not Designated as Hedging Instrument [Member] |
Interest Rate Cap [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
$ 0.3 
$ 0 
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (Interest Rate Contract [Member], Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Net Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion)
$ (0.6)
$ 2.2 
Interest Expense [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion)
0.5 
1.6 
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)
$ 1.6 
$ 2.4 
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Interest Expense [Member] |
Interest Rate Cap [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
(Gain) loss on non-derivative instruments, net
$ 0.3 
$ 0 
Other Nonoperating Income (Expense) [Member] |
Foreign Exchange Contract [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
(Gain) loss on non-derivative instruments, net
$ 0.1 
$ 2.4 
Derivative Financial Instruments - Additional Information (Details)
3 Months Ended 3 Months Ended
Dec. 31, 2013
Interest_Rate_Swaps
Mar. 31, 2017
2023 Dollar Term Loan [Member]
USD ($)
Dec. 31, 2013
Euro Term Loan Due 2020 [Member]
EUR (€)
Mar. 31, 2017
2023 Euro Term Loan [Member]
USD ($)
Mar. 31, 2017
Interest Rate Swap [Member]
Dec. 31, 2013
Interest Rate Swap [Member]
USD ($)
Dec. 31, 2013
Interest Rate Cap [Member]
Euro Term Loan Due 2020 [Member]
USD ($)
Mar. 31, 2017
2023 Euro Term Loan [Member]
EUR (€)
Derivatives, Fair Value [Line Items]
 
 
 
 
 
 
 
 
Number Of interest rate swaps
 
 
 
 
 
 
 
Derivative, notional amount
 
$ 600,000,000 
€ 300,000,000 
 
 
$ 1,173,000,000 
 
€ 388,000,000 
Derivative, maturity date
 
Dec. 31, 2019 
 
Dec. 31, 2019 
Sep. 29, 2017 
 
 
 
Number Of Interest Rate Caps
 
 
 
 
 
 
 
Derivative, Inception Date
 
Sep. 30, 2017 
 
Sep. 30, 2017 
 
 
 
 
Derivative, cap interest rate
 
1.50% 
1.50% 
1.25% 
 
 
 
 
Derivative instrument, premium
 
 
 
600,000 
 
 
3,100,000 
 
Derivative Instrument, Deferred Premium
 
$ 8,600,000 
 
 
 
 
 
 
Segments - Reconciliation of Revenue from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Segment
Mar. 31, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Number of operating segments
 
Net sales
$ 1,007.8 
$ 955.6 
Performance Coatings [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
586.4 
543.0 
Performance Coatings [Member] |
Refinish [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
388.6 
378.7 
Performance Coatings [Member] |
Industrial [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
197.8 
164.3 
Transportation Coatings [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
421.4 
412.6 
Transportation Coatings [Member] |
Light Vehicle [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
340.0 
329.4 
Transportation Coatings [Member] |
Commercial Vehicle [Member]
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Net sales
$ 81.4 
$ 83.2 
Segments - Schedule of Segment Reporting Information, by Segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting Information [Line Items]
 
 
Net sales
$ 1,007.8 
$ 955.6 
Equity in earnings in unconsolidated affiliates
0.2 
0.2 
Adjusted EBITDA
203.1 
194.8 
Investment in unconsolidated affiliates
14.2 
15.6 
Performance Coatings [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
586.4 
543.0 
Equity in earnings in unconsolidated affiliates
0.1 
0.1 
Adjusted EBITDA
116.9 
110.1 
Investment in unconsolidated affiliates
2.9 
4.1 
Transportation Coatings [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
421.4 
412.6 
Equity in earnings in unconsolidated affiliates
0.1 
0.1 
Adjusted EBITDA
86.2 
84.7 
Investment in unconsolidated affiliates
$ 11.3 
$ 11.5 
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting [Abstract]
 
 
Income before income taxes
$ 75.8 
$ 45.2 
Interest expense, net
35.8 
50.1 
Depreciation and amortization
82.4 
76.0 
EBITDA
194.0 
171.3 
Foreign exchange remeasurement (gains) losses (a)
(1.2)
7.5 
Long-term employee benefit plan adjustments (b)
0.4 
0.6 
Termination benefits and other employee related costs (c)
0.8 
1.9 
Consulting and advisory fees (d)
(0.1)
3.0 
Transactional costs (gains) (e)
(1.0)
Stock-based compensation (f)
10.4 
10.2 
Other adjustments (g)
0.2 
1.8 
Dividends in respect of noncontrolling interest (h)
(0.4)
(1.5)
Adjusted EBITDA
$ 203.1 
$ 194.8 
Shareholders' Equity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Jan. 1, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
Total stockholders’ equity, including adjustments
$ 1,383.8 
$ 1,246.1 
 
Total stockholders’ equity, beginning balance
1,257.6 
1,141.2 
 
Cumulative effect of an accounting change
 
 
43.9 
Net income
65.9 
31.8 
 
Other comprehensive income, net of tax
41.5 
13.8 
 
Recognition of stock-based compensation
10.4 
10.2 
 
Exercise of stock options
8.8 
6.7 
 
Dividends paid to noncontrolling interests
(0.4)
(1.5)
 
Total stockholders’ equity, ending balance
1,383.8 
1,246.1 
 
Parent [Member]
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
Total stockholders’ equity, including adjustments
1,260.0 
1,179.2 
 
Total stockholders’ equity, beginning balance
1,136.1 
1,073.7 
 
Cumulative effect of an accounting change
 
 
43.9 
Net income
64.1 
30.9 
 
Other comprehensive income, net of tax
40.6 
13.8 
 
Recognition of stock-based compensation
10.4 
10.2 
 
Exercise of stock options
8.8 
6.7 
 
Dividends paid to noncontrolling interests
 
Total stockholders’ equity, ending balance
1,260.0 
1,179.2 
 
Noncontrolling Interest [Member]
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
Total stockholders’ equity, including adjustments
123.8 
66.9 
 
Total stockholders’ equity, beginning balance
121.5 
67.5 
 
Net income
1.8 
0.9 
 
Other comprehensive income, net of tax
0.9 
 
Recognition of stock-based compensation
 
Exercise of stock options
 
Dividends paid to noncontrolling interests
(0.4)
(1.5)
 
Total stockholders’ equity, ending balance
$ 123.8 
$ 66.9 
 
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
$ (350.4)
 
Other comprehensive income, net of tax
41.5 
13.8 
Accumulated other comprehensive income (loss), ending balance
(309.8)
 
Unrealized Currency Translation Adjustments
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
(292.2)
(232.8)
Current year deferrals to AOCI
39.7 
15.7 
Reclassifications from AOCI to Net income
Other comprehensive income, net of tax
39.7 
15.7 
Accumulated other comprehensive income (loss), ending balance
(252.5)
(217.1)
Pension Adjustments
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
(56.6)
(33.4)
Current year deferrals to AOCI
Reclassifications from AOCI to Net income
0.6 
(0.1)
Other comprehensive income, net of tax
0.6 
(0.1)
Accumulated other comprehensive income (loss), ending balance
(56.0)
(33.5)
Unrealized Gain on Securities
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
0.4 
0.1 
Current year deferrals to AOCI
(0.4)
Reclassifications from AOCI to Net income
Other comprehensive income, net of tax
(0.4)
Accumulated other comprehensive income (loss), ending balance
0.4 
(0.3)
Unrealized Gain (Loss) on Derivatives
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
(2.0)
(3.2)
Current year deferrals to AOCI
(0.8)
(2.4)
Reclassifications from AOCI to Net income
1.1 
1.0 
Other comprehensive income, net of tax
0.3 
(1.4)
Accumulated other comprehensive income (loss), ending balance
(1.7)
(4.6)
Accumulated Other Comprehensive Loss
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Accumulated other comprehensive income (loss), beginning balance
(350.4)
(269.3)
Current year deferrals to AOCI
38.9 
12.9 
Reclassifications from AOCI to Net income
1.7 
0.9 
Other comprehensive income, net of tax
40.6 
13.8 
Accumulated other comprehensive income (loss), ending balance
$ (309.8)
$ (255.5)
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Equity [Abstract]
 
 
Pension and other postretirement benefit plans, tax benefit
$ 0.1 
$ 0 
Cumulative pension and other postretirement benefit plans, tax benefit
19.2 
13.4 
Unrealized gain (loss) on derivatives, tax benefit
(0.3)
(0.8)
Cumulative unrealized gain (loss) on derivatives, tax benefit
$ (0.8)
$ (2.7)
Venezuela (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Intercompany Foreign Currency Balance [Line Items]
 
 
 
Assets
$ 5,960.4 
 
$ 5,854.8 
Liabilities
4,576.6 
 
4,597.2 
Net sales
1,007.8 
955.6 
 
Operating Income (Loss)
(110.0)
(103.3)
 
Subsidiaries [Member]
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
Exchange loss
1.5 
7.1 
 
Assets
73.7 
 
82.7 
Liabilities
42.5 
 
42.3 
Non-monetary assets, net
35.6 
 
34.8 
Net sales
1.9 
9.9 
 
Operating Income (Loss)
(2.0)
3.5 
 
Subsidiaries [Member] |
Subsidiary of Common Parent [Member]
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
Liabilities
$ 34.5 
 
$ 32.8 
Subsequent Events (Details) (Valspar's North American Industrial Wood Coatings [Member], Subsequent Event [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended
Apr. 26, 2017
Valspar's North American Industrial Wood Coatings [Member] |
Subsequent Event [Member]
 
Subsequent Event [Line Items]
 
Payments to acquire businesses, gross
$ 420.0 
Revenue reported by acquired entity for last annual period
$ 225.0