AXALTA COATING SYSTEMS LTD., 10-Q filed on 4/25/2018
Quarterly Report
v3.8.0.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2018
Apr. 19, 2018
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, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) Q1  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   245,276,547
v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Income Statement [Abstract]    
Net sales $ 1,165.8 $ 1,007.8
Other revenue 6.2 5.9
Total revenue 1,172.0 1,013.7
Cost of goods sold 776.0 641.4
Selling, general and administrative expenses 227.8 224.6
Research and development expenses 19.3 15.6
Amortization of acquired intangibles 28.9 21.7
Income from operations 120.0 110.4
Interest expense, net 39.4 35.8
Other income, net (2.2) (1.2)
Income before income taxes 82.8 75.8
Provision for income taxes 11.8 9.9
Net income 71.0 65.9
Less: Net income attributable to noncontrolling interests 1.1 1.8
Net income attributable to controlling interests $ 69.9 $ 64.1
Basic net income (loss) per share (dollars per share) $ 0.29 $ 0.27
Diluted net income (loss) per share (dollars per share) $ 0.28 $ 0.26
Basic weighted average shares outstanding (in shares) 240.9 239.8
Diluted weighted average shares outstanding (in shares) 245.8 246.1
v3.8.0.1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Statement of Comprehensive Income [Abstract]    
Net income $ 71.0 $ 65.9
Other comprehensive income, before tax:    
Foreign currency translation 43.1 40.6
Derivative instruments 7.9 0.6
Pension benefits 0.3 0.5
Other comprehensive income, before tax 51.3 41.7
Income tax provision related to items of other comprehensive income 1.3 0.2
Other comprehensive income, net of tax 50.0 41.5
Comprehensive income 121.0 107.4
Less: Comprehensive income attributable to noncontrolling interests 2.0 2.7
Comprehensive income attributable to controlling interests $ 119.0 $ 104.7
v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 600.4 $ 769.8
Restricted cash 2.9 3.1
Accounts and notes receivable, net 940.9 870.2
Inventories 641.8 608.6
Prepaid expenses and other 116.9 63.9
Total current assets 2,302.9 2,315.6
Property, plant and equipment, net 1,407.8 1,388.6
Goodwill 1,304.4 1,271.2
Identifiable intangibles, net 1,484.2 1,428.2
Other assets 448.1 428.6
Total assets 6,947.4 6,832.2
Current liabilities:    
Accounts payable 570.0 554.9
Current portion of borrowings 41.8 37.7
Other accrued liabilities 407.7 489.6
Total current liabilities 1,019.5 1,082.2
Long-term borrowings 3,919.5 3,877.9
Accrued pensions 286.2 279.1
Deferred income taxes 167.1 152.9
Other liabilities 30.7 32.3
Total liabilities 5,423.0 5,424.4
Commitments and contingencies
Shareholders’ equity    
Common shares, $1.00 par, 1,000.0 shares authorized, 245.3 and 243.9 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively 243.3 242.4
Capital in excess of par 1,371.1 1,354.5
Retained earnings (Accumulated deficit) 61.4 (21.4)
Treasury shares (61.7) (58.4)
Accumulated other comprehensive loss (192.7) (241.0)
Total Axalta shareholders’ equity 1,421.4 1,276.1
Noncontrolling interests 103.0 131.7
Total shareholders’ equity 1,524.4 1,407.8
Total liabilities and shareholders’ equity $ 6,947.4 $ 6,832.2
v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
shares in Millions
Mar. 31, 2018
Dec. 31, 2017
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) 245.3 243.9
Common shares, shares outstanding (in shares) 245.3 243.9
Treasury shares 2.1 2.0
v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Operating activities:    
Net income $ 71.0 $ 65.9
Adjustment to reconcile net income to cash used for operating activities:    
Depreciation and amortization 91.9 82.4
Amortization of financing costs and original issue discount 1.9 2.1
Deferred income taxes (4.9) 0.0
Realized and unrealized foreign exchange gains, net (1.3) (3.7)
Other non-cash, net (5.3) (0.3)
Changes in operating assets and liabilities:    
Trade accounts and notes receivable (52.3) (62.5)
Inventories (42.9) (11.2)
Prepaid expenses and other (30.2) (27.5)
Accounts payable 33.9 (0.8)
Other accrued liabilities (87.0) (54.8)
Other liabilities (4.2) (4.7)
Cash used for operating activities (21.0) (4.7)
Investing activities:    
Acquisitions (78.2) (56.9)
Investment in non-controlling interest (26.9) 0.0
Purchase of property, plant and equipment (39.5) (32.3)
Other investing activities 0.0 (0.2)
Cash used for investing activities (144.6) (89.4)
Financing activities:    
Payments on short-term borrowings (9.3) (2.3)
Payments on long-term borrowings (6.9) (5.0)
Financing-related costs 0.0 (2.3)
Dividends paid to noncontrolling interests (1.0) (0.4)
Purchase of treasury stock 3.3 0.0
Proceeds from option exercises 6.2 8.8
Deferred acquisition-related consideration 0.0 3.4
Cash used for financing activities (14.3) (4.6)
Decrease in cash (179.9) (98.7)
Effect of exchange rate changes on cash 10.3 2.6
Cash at beginning of period 772.9 538.1
Cash at end of period 603.3 442.0
Cash and cash equivalents 600.4 439.1
Restricted cash $ 2.9 $ 2.9
v3.8.0.1
Basis of Presentation of the Condensed Consolidated Financial Statements
3 Months Ended
Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
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, 2018 and December 31, 2017, the results of operations and comprehensive income for the three months ended March 31, 2018 and 2017, 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, 2017. 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, 2018 are not necessarily indicative of the results to be expected for a full year.
Accounting Standards - Reclassifications
During the three months ended March 31, 2018, we adopted various accounting standards that had impacts to the accompanying condensed consolidated financial statements, one of which resulted in reclassifications to amounts previously reported for the three months ended March 31, 2017. Refer to Note 2 for further information.
v3.8.0.1
Recent Accounting Guidance
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Recent Accounting Guidance
RECENT ACCOUNTING GUIDANCE
Recently Adopted Accounting Guidance
In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2017-12, "Derivatives and Hedging", which modifies the presentation and disclosure of hedging results and provides partial relief on the timing of certain aspects of hedge documentation including the elimination of the requirement to recognize hedge ineffectiveness separately in earnings. We elected to early adopt this standard on January 1, 2018 using the modified retrospective approach. We recorded a cumulative adjustment for previously recognized ineffectiveness to retained earnings at January 1, 2018. This did not result in a material impact to our financial statements.
In March 2017, the 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 statement of operations separately from the service cost component and outside a subtotal of income from operations. On January 1, 2018 we retrospectively adopted this standard, which resulted in an increase and a decrease of amounts previously reported as cost of goods sold and selling, general and administrative expenses of $0.3 million and $0.7 million, respectively, which were offset by a corresponding increase in previously reported other income, net of $0.4 million for the three months ended March 31, 2017.
On January 1, 2018, we adopted ASU 2017-01, "Clarifying the Definition of a Business", which sets forth the accounting guidance that assists in the determination of whether a set of transferred assets and activities is a business. This new guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business; whereas, if the threshold is not met, the entity evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue guidance.
On January 1, 2018, we adopted ASU 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities", which requires equity investments in unconsolidated entities, excluding those accounted for using the equity method of accounting, to be remeasured at exit price fair value, with changes recorded in the statement of operations. This standard was adopted using the modified retrospective application resulting in a cumulative adjustment to retained earnings at January 1, 2018. This did not result in a material impact to our financial statements.
On January 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers”, and all related amendments comprising ASC 606 (the “new revenue standard”), electing to use the modified retrospective method. We also elected to apply certain practical expedients, including the application of the modified retrospective method to open contracts at December 31, 2017. Comparative information has not been recasted and continues to be reported under historical U.S. GAAP in effect to those applicable periods. The following table summarizes the cumulative effect made to our condensed consolidated balance sheet as a result of the adoption to this standard.
 
December 31, 2017
Adjustments due to ASU 2014-09
January 1, 2018
Assets
 
 
 
Inventories
$
608.6

$
(22.7
)
$
585.9

Prepaid expenses and other (1)
63.9

41.7

105.6

Other assets (2)
428.6

(1.9
)
426.7

 
 
 
 
Liabilities
 
 
 
Other accrued liabilities (3)
$
489.6

$
1.9

$
491.5

Deferred income taxes
152.9

3.0

155.9

 
 
 
 
Equity
 
 
 
Accumulated deficit
$
(21.4
)
$
12.1

$
(9.3
)
Noncontrolling interests
131.7

0.1

131.8

(1)
Includes the impact to contract assets resulting from the modified retrospective adoption of the new revenue standard.
(2)
Includes the impacts to deferred income taxes resulting from the modified retrospective adoption of the new revenue standard.
(3)
Includes the impacts of estimated variable consideration on certain arrangements in our refinish end-market.
The impacts to the balance sheet as of the adoption date represent the acceleration of revenue for certain arrangements, primarily within our light vehicle end-market, for which we determined our performance obligation has been satisfied, as discussed further in Note 3. Specifically, we concluded that the transfer of control to the customer, as defined under the new revenue standard, occurs at a date prior to consumption. Additionally, certain costs historically reported in selling, general and administrative expenses under historical U.S. GAAP related to technical support services that are not considered material in the context of our contracts with certain customers are now reported within cost of goods sold on the condensed consolidated statements of operations, as they represent costs incurred in satisfaction of performance obligations. See Note 3 for further discussion.
Accounting Guidance Issued But Not Yet Adopted
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.
v3.8.0.1
Revenue
3 Months Ended
Mar. 31, 2018
Revenue from Contract with Customer [Abstract]  
Revenue
REVENUE
We recognize revenue at the point our contractual performance obligations with our customers are satisfied. This occurs at the point in time when control of our products transfers to the customer based on considerations of right to payment, transfer of legal title, physical possession, risks and rewards of ownership and customer acceptance. For the majority of our revenue, control transfers upon shipment of our products to our customers. Our remaining revenue is recorded upon delivery or consumption for our product sales or as incurred for services provided and royalties earned.
Revenue is measured as the amount of consideration we expect to receive in exchange for our products or services. Our contracts, including those subject to standard terms and conditions under multi-year agreements, are largely short-term in nature and each customer purchase order typically represents a contract with the delivery of coatings representing the only separate performance obligation.
For certain customer consignment arrangements within our light vehicle, industrial and commercial vehicle end-markets, revenue is recognized upon shipment, as this is the point in time we have concluded that control of our product has transferred to our customer based on our considerations of the indicators of control in the contracts, including right of use and risk and reward of ownership. For other consignment arrangements, revenue is recognized upon actual consumption by our customers, as this represents the point in time that control is determined to have transferred to the customer based on the contractual arrangement.
In our refinish end-market, our product sales are typically supplied through a network of distributors. Control transfers and revenue is recognized when our products are delivered to our distribution customers. Variable consideration in the form of price, less discounts and rebates, are estimated and recorded, as a reduction to net sales, upon the sale of our products based on our ability to make a reasonable estimate of the amounts expected to be received or incurred. The estimates of variable consideration involve significant assumptions based on the best estimates of inventory held by distributors, applicable pricing, as well as the use of historical actuals for sales, discounts and rebates, which may result in changes in estimates in the future.
The timing of payments associated with the above arrangements may differ from the timing associated with the satisfaction of our performance obligations. The period between the satisfaction of the performance obligation and the receipt of payment is dependent on terms and conditions specific to the customers.
All costs incurred directly in satisfaction of our performance obligations associated with revenue are reported in cost of goods sold on the statements of operations. We also incur incremental up-front costs in order to obtain contracts with certain customers, including Business Incentive Plan assets ("BIPs"), which are capitalized as a component of other assets and amortized over the estimated life of the contractual arrangement as a reduction of net sales. The Company receives volume commitments and/or sole supplier status from its customers over the life of the contractual arrangements, which approximates a five-year weighted average useful life. The termination clauses in these contractual arrangements include standard clawback provisions that enable the Company to collect monetary damages in the event of a customer’s failure to meet its commitments under the relevant contract. At March 31, 2018 and December 31, 2017, the total carrying value of BIPs were $174.3 million and $173.0 million, respectively, and are presented within other assets on the condensed consolidated balance sheets. For the three months ended March 31, 2018 and 2017, $16.3 million and $16.9 million, respectively, were amortized and reflected as reductions of net sales in the condensed consolidated statements of operations. We do not incur any other incremental direct costs to obtain a contract.
We accrue for sales returns and other allowances based on our historical experience, as well as expectations based on current information relevant to our customers. We include the amounts billed to customers for shipping and handling fees in net sales and include costs incurred for the delivery of goods as cost of goods sold in the statement of operations.
Recognition of licensing and royalty income occurs at the point in time when agreed upon performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured.
Consideration for products in which control has transferred to our customers that is conditional on something other than the passage of time is recorded as a contract asset within prepaid expenses and other on the balance sheet. The contract asset balances at March 31, 2018 and January 1, 2018 were $47.8 million and $41.7 million, respectively.
The arrangements discussed above that have changed under the new revenue standard have resulted in a difference in timing of revenue recognition and classification of associated costs compared to historical U.S. GAAP. In addition to the application of the modified retrospective method to open contracts at the date of adoption (discussed in Note 2), we have applied certain other policy elections upon adoption of the new revenue standard beginning January 1, 2018, including accounting for shipping and handling costs as contract fulfillment costs, as well as excluding from the transaction price any taxes imposed on and collected from customers in revenue producing transactions. Other practical expedients associated with the new revenue standard were assessed by management and concluded to be not applicable, including the application of a portfolio approach, costs to obtain a contract, existence of significant financing components, contract modifications and right to invoice.
The following tables summarizes the impact to our condensed consolidated statements of operations and balance sheets in accordance with the new revenue standard:
 
For the three months ended March 31, 2018
Condensed Consolidated Statement of Operations
As reported
Prior to ASU 2014-09
Increases / (Decreases)
Net sales
$
1,165.8

$
1,160.0

$
5.8

Cost of goods sold
776.0

760.0

16.0

Selling, general and administrative expenses
227.8

241.5

(13.7
)
Provision for income taxes
11.8

11.2

0.6

Net income
71.0

68.1

2.9

Less: Net income attributable to noncontrolling interests
1.1

0.9

0.2

Net income attributable to controlling interests
$
69.9

$
67.2

$
2.7

 
At March 31, 2018
Condensed Consolidated Balance Sheet
As reported
Prior to ASU 2014-09
Increases / (Decreases)
Assets
 
 
 
Inventories
$
641.8

$
667.2

$
(25.4
)
Prepaid expenses and other
116.9

69.1

47.8

Other assets
448.1

450.4

(2.3
)
 
 

 
Liabilities
 

 
Other accrued liabilities
$
407.7

$
405.8

$
1.9

Deferred income taxes
167.1

164.0

3.1

 
 

 
Equity
 

 
Retained earnings
$
61.4

$
46.6

$
14.8

Noncontrolling interests
103.0

102.7

0.3


Revenue Streams
Our revenue streams are disaggregated based on the types of products and services offered in contracts with our customers, which are depicted in each of our four end-markets.
Refinish - We develop, market and supply a complete portfolio of innovative coatings systems and color matching technologies to facilitate faster automotive collision repairs relative to competing technologies. Our refinish products and systems include a range of coatings layers required to match the vehicle’s color and appearance, producing a repair surface indistinguishable from the adjacent surface.
Industrial - The industrial end-market is comprised of liquid and powder coatings used in a broad array of end-market applications. We are also a leading global developer, manufacturer and supplier of functional and decorative liquid and powder coatings for a large number of diversified applications in the industrial end-market. We provide a full portfolio of products for applications including architectural cladding and fittings, automotive coatings, general industrial, job coaters, electrical insulation coatings, HVAC, appliances, industrial wood, coil, rebar and oil & gas pipelines.
Light Vehicle - Light vehicle original equipment manufacturers ("OEMs") select coatings providers on the basis of their global ability to deliver advanced technological solutions that improve exterior appearance and durability and provide long-term corrosion protection. Customers also look for suppliers that can enhance process efficiency to reduce overall manufacturing costs and provide on-site technical support.
Commercial Vehicle - Sales in the commercial vehicle end-market are generated from a variety of applications including non-automotive transportation (e.g., heavy duty truck, bus and rail) and Agricultural, Construction and Earthmoving, as well as related markets such as trailers, recreational vehicles and personal sport vehicles. This end-market is primarily driven by global commercial vehicle production, which is influenced by overall economic activity, government infrastructure spending, equipment replacement cycles and evolving environmental standards. Commercial vehicle OEMs select coatings providers on the basis of their ability to consistently deliver advanced technological solutions that improve exterior appearance, protection and durability and provide extensive color libraries and matching capabilities at the lowest total cost-in-use, while meeting stringent environmental requirements.
We also have other revenue streams which include immaterial revenues relative to the net sales of our four end-markets, comprised of sales of royalties and services, primarily within our light vehicle and refinish end-markets.
See Note 19 for net sales by end-market.
v3.8.0.1
Acquisitions Acquisitions
3 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Acquisitions
ACQUISITIONS
Acquisition of The Valspar Corporation's North American Industrial Wood Business
On June 1, 2017, the Company completed its acquisition from The Valspar Corporation ("Valspar") of certain assets constituting its North American Industrial Wood Coatings business (the "Industrial Wood" business), for a purchase price of $420.0 million, subject to working capital adjustments. No material adjustments were recorded during the three months ended March 31, 2018. After all required adjustments, the Company paid an aggregate purchase price of $430.3 million, which was comprised of the following:
 
June 1, 2017 (As Initially Reported)
Measurement Period Adjustments
June 1, 2017
(As Adjusted)
Accounts and notes receivable—trade
$
23.3

$

$
23.3

Inventories
24.9

(0.2
)
24.7

Prepaid expenses and other
0.2


0.2

Property, plant and equipment
23.0

0.1

23.1

Identifiable intangibles
254.2

4.9

259.1

Accounts payable
(22.4
)
0.2

(22.2
)
Other accrued liabilities
(5.1
)
0.4

(4.7
)
Net assets acquired before goodwill on acquisition
298.1

5.4

303.5

Goodwill on acquisition
132.6

(5.8
)
126.8

Net assets acquired
$
430.7

$
(0.4
)
$
430.3


Supplemental Pro Forma Information
The Company's net sales and income before income taxes for the three months ended March 31, 2018 include net sales of $62.3 million and pre-tax income of $7.6 million related to the Industrial Wood business. The following supplemental pro forma information represents the results of operations as if the Company had acquired the Industrial Wood business on January 1, 2016:
 
For the three months ended
 (in millions, except per share data)
March 31, 2017
Net sales
$
1,069.6

Net income
$
67.9

Net income attributable to controlling interests
$
66.1

Net income per share (Basic)
$
0.28

Net income per share (Diluted)
$
0.27


The unaudited pro forma consolidated information does not necessarily reflect the actual results that would have occurred had the acquisition taken place on January 1, 2016, nor is it meant to be indicative of future results of operations of the combined businesses under the ownership and operation of the Company.
Other Acquisitions
During the three months ended March 31, 2018, we successfully completed two strategic acquisitions in North America which operate within our Performance Coatings segment ("2018 Acquisitions"). Our 2018 aggregate spending for these acquisitions was $75.4 million. The overall impacts to our condensed consolidated financial statements were not considered to be material, either individually or in the aggregate. The fair value associated with identifiable intangible assets from the 2018 Acquisitions was $61.6 million, comprised primarily of technology assets, which will be amortized over an average term of approximately 9 years.
At March 31, 2018, we have not finalized the purchase accounting related to the 2018 Acquisitions and these amounts represent preliminary values. For our business acquisitions completed after March 31, 2017, we expect to finalize our purchase accounting during the respective measurement periods which will be no later than one year following the closing dates.
In addition, during the three months ended March 31, 2018, as part of the Sale and Purchase Agreement for a joint venture acquired during the year ended December 31, 2016, we were required to purchase an additional 24.5% interest for $26.9 million, increasing our total ownership percentage to 75.5%.
v3.8.0.1
Goodwill and Identifiable Intangible Assets
3 Months Ended
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identifiable Intangible Assets
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
Goodwill
The following table shows changes in the carrying amount of goodwill from December 31, 2017 to March 31, 2018 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
At December 31, 2017
$
1,189.2

$
82.0

$
1,271.2

Purchase accounting adjustments
(0.2
)

(0.2
)
Foreign currency translation
31.3

2.1

33.4

At March 31, 2018
$
1,220.3

$
84.1

$
1,304.4


Identifiable Intangible Assets
The following tables summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
March 31, 2018
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
567.3

$
(230.9
)
$
336.4

10.3
Trademarks - indefinite-lived
283.5


283.5

Indefinite
Trademarks - definite-lived
105.3

(19.8
)
85.5

15.8
Customer relationships
958.8

(193.0
)
765.8

19.0
Non-compete agreements and other
17.2

(4.2
)
13.0

4.8
Total
$
1,932.1

$
(447.9
)
$
1,484.2

 
December 31, 2017
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
498.0

$
(213.6
)
$
284.4

10.5
Trademarks - indefinite-lived
277.2


277.2

Indefinite
Trademarks - definite-lived
102.6

(17.7
)
84.9

15.9
Customer relationships
945.1

(176.8
)
768.3

19.0
Non-compete agreements and other
16.6

(3.2
)
13.4

4.8
Total
$
1,839.5

$
(411.3
)
$
1,428.2

 

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2018 and each of the succeeding five years is:
Remainder of 2018
$
89.9

2019
$
118.9

2020
$
117.5

2021
$
116.2

2022
$
114.1

2023
$
72.6

v3.8.0.1
Restructuring
3 Months Ended
Mar. 31, 2018
Restructuring and Related Activities [Abstract]  
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 Axalta Way and productivity initiatives. 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, 2017 to March 31, 2018:
 
2018 Activity
Balance at December 31, 2017
$
71.5

Expenses, net of adjustments to estimates
(0.9
)
Payments made
(25.1
)
Foreign currency translations
1.9

Balance at March 31, 2018
$
47.4

v3.8.0.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
Sale-Leaseback Obligations
We have two lease arrangements that are treated as sale-leaseback financing transactions. The lessor's building costs are depreciated over an estimated useful life beginning at the commencement of the rental terms, at which point such lease assets recorded in property, plant and equipment had a corresponding offset within long-term borrowings. The table below reflects the total remaining cash payments related to both transactions during the rental term as of March 31, 2018:
 
Sale-leaseback obligations
Remainder of 2018
$
4.0

2019
5.4

2020
5.5

2021
5.6

2022
5.8

Thereafter
84.2

Total minimum payments
$
110.5


Guarantees
We guarantee certain of our customers’ obligations to third parties, whereby any default by our customers on their obligations could force us to make payments to the applicable creditors. At March 31, 2018 and December 31, 2017, we had outstanding bank guarantees of $14.5 million and $15.2 million, respectively, which expire between 2018 and 2022. We monitor the obligations to evaluate whether we have a liability at the balance sheet date, for which none existed at March 31, 2018 and December 31, 2017.
Other
We are subject to various pending lawsuits, legal proceedings and other claims in the ordinary course of business, including civil, regulatory and environmental matters. These litigation matters may involve third party indemnification obligations and/or insurance covering all or part of any potential damage against us. All of these matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the proceedings and other claims at this time, although 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. The potential effects, if any, on such condensed consolidated financial statements will be recorded in the period in which these matters are probable and estimable.
v3.8.0.1
Long-term Employee Benefits
3 Months Ended
Mar. 31, 2018
Retirement Benefits [Abstract]  
Long-term Employee Benefits
LONG-TERM EMPLOYEE BENEFITS
Components of Net Periodic Benefit Cost
The following table sets forth the components of net periodic benefit cost for the three months ended March 31, 2018 and 2017. Service costs are recorded within cost of goods sold and selling, general and administrative expenses depending on the respective functions of the employees, whereas non-service costs are recorded within other income, net.
 
Three Months Ended March 31,
 
2018
2017
Components of net periodic benefit cost:
 
 
Net periodic benefit cost:
 
 
Service cost
$
2.3

$
2.1

Interest cost
3.4

3.4

Expected return on plan assets
(4.2
)
(3.5
)
Amortization of actuarial loss, net
0.3

0.5

Net periodic benefit cost
$
1.8

$
2.5

v3.8.0.1
Stock-based Compensation
3 Months Ended
Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based Compensation
STOCK-BASED COMPENSATION
During the three months ended March 31, 2018 and 2017 we recognized $8.4 million and $10.4 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 $1.5 million and $2.9 million for the three months ended March 31, 2018 and 2017, respectively.
Compensation cost is recorded for the fair values of the awards over the requisite service period of the awards using the graded-vesting attribution method net of forfeitures. We have elected to recognize forfeitures as they occur.
2018 Activity
In February 2018, 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, 2018 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, 2018
8.1

$
16.54

 
 
Granted
0.8

$
29.81

 
 
Exercised
(0.5
)
$
12.03

 
 
Forfeited
(0.1
)
$
28.82

 
 
Outstanding at March 31, 2018
8.3

$
17.98

 
 
Vested and expected to vest at March 31, 2018
8.3

$
17.98

$
103.7

6.62
Exercisable at March 31, 2018
6.4

$
14.57

$
100.9

5.94

Cash received by the Company upon exercise of options for the three months ended March 31, 2018 was $6.2 million. Tax benefits on these exercises were $2.0 million.
At March 31, 2018, there was $9.1 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 1.7 years.
Restricted Stock Awards and Restricted Stock Units
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2018
1.9

$
29.32

Granted
0.6

29.93

Vested
(0.4
)
26.04

Forfeited


Outstanding at March 31, 2018
2.1

$
30.09


Tax benefits on the vesting of restricted stock were $0.4 million for the three months ended March 31, 2018.
At March 31, 2018, there was $30.3 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 1.7 years.
Performance Stock Awards and Performance Share Units
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2018
0.6

$
31.17

Granted
0.3

33.77

Vested


Forfeited


Outstanding at March 31, 2018
0.9

$
32.08


At March 31, 2018, there was $20.2 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 2.3 years.
v3.8.0.1
Other Income, Net
3 Months Ended
Mar. 31, 2018
Other Income and Expenses [Abstract]  
Other Expense, Net
OTHER INCOME, NET
 
Three Months Ended March 31,
 
2018
2017
Foreign exchange gains, net
$

$
(1.2
)
Other miscellaneous income, net
(2.2
)

Total
$
(2.2
)
$
(1.2
)
v3.8.0.1
Income Taxes
3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
Our effective income tax rates for the three months ended March 31, 2018 and 2017 are as follows:
 
Three Months Ended March 31,
 
2018
2017
Effective Tax Rate
14.3
%
13.1
%

The higher effective tax rate for the three months ended March 31, 2018 was primarily due to the decrease in excess tax benefits related to stock-based compensation of $2.4 million compared to $5.8 million for the three months ended March 31, 2018 and 2017, respectively, offset by the net favorable impact of earnings where the statutory rate is lower than the U.S. Federal statutory rate and the impact of the U.S. Tax Cuts and Jobs Act ("U.S. TCJA").
On December 22, 2017, the U.S. TCJA legislation was enacted into law and as a result we recorded a provisional tax charge at December 31, 2017 of $107.8 million. As of March 31, 2018, we have reviewed additional guidance released by the Department of the Treasury and reduced the tax charge by $12.4 million related to the realizability of certain interest carryforwards. In accordance with Staff Accounting Bulletin 118, our net provisional tax charge recorded to date is based on our present understanding of the U.S. TCJA and may be further adjusted as additional guidance is released. The benefit related to the reduction to the U.S. TCJA provisional tax charge was largely offset by the impact of tax discrete items for the three months ended March 31, 2018 related to other tax initiatives.
The effective tax rate for the three months ended March 31, 2018 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 of 21%, currency exchange losses, revisions to the provisional charge related to the U.S. TCJA discussed above 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, unrecognized tax benefits and non-deductible expenses and interest.
v3.8.0.1
Net Income Per Common Share
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
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)
2018
2017
Net income attributable to controlling interests
$
69.9

$
64.1

Basic weighted average shares outstanding
240.9

239.8

Diluted weighted average shares outstanding
245.8

246.1

Earnings per common share:
 
 
Basic net income per share
$
0.29

$
0.27

Diluted net income per share
$
0.28

$
0.26

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, 2018 and 2017 were 2.5 million and 1.6 million, respectively.
v3.8.0.1
Accounts and Notes Receivable, Net
3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Accounts and Notes Receivable, Net
ACCOUNTS AND NOTES RECEIVABLE, NET
 
March 31, 2018
December 31, 2017
Accounts receivable—trade, net
$
824.0

$
748.2

Notes receivable
24.5

29.4

Other
92.4

92.6

Total
$
940.9

$
870.2


Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $16.3 million and $15.9 million at March 31, 2018 and December 31, 2017, respectively. Bad debt expense, within selling, general and administration expenses, was $0.2 million and $0.7 million for the three months ended March 31, 2018 and 2017, respectively.
v3.8.0.1
Inventories
3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Inventories
INVENTORIES
 
March 31, 2018
December 31, 2017
Finished products
$
358.8

$
347.5

Semi-finished products
101.2

95.5

Raw materials and supplies
181.8

165.6

Total
$
641.8

$
608.6


Stores and supplies inventories of $22.7 million and $20.8 million at March 31, 2018 and December 31, 2017, respectively.
v3.8.0.1
Property, Plant and Equipment, Net
3 Months Ended
Mar. 31, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net
PROPERTY, PLANT AND EQUIPMENT, NET
Depreciation expense amounted to $46.4 million and $43.3 million for the three months ended March 31, 2018 and 2017, respectively.
 
March 31, 2018
December 31, 2017
Property, plant and equipment
$
2,270.3

$
2,193.6

Accumulated depreciation
(862.5
)
(805.0
)
Property, plant and equipment, net
$
1,407.8

$
1,388.6

v3.8.0.1
Borrowings
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Borrowings
BORROWINGS
Borrowings are summarized as follows:
 
March 31, 2018
December 31, 2017
2024 Dollar Term Loans
$
1,955.0

$
1,960.0

2023 Euro Term Loans
486.1

472.5

2024 Dollar Senior Notes
500.0

500.0

2024 Euro Senior Notes
412.3

399.7

2025 Euro Senior Notes
553.8

536.9

Short-term and other borrowings
100.4

94.8

Unamortized original issue discount
(8.8
)
(9.1
)
Unamortized deferred financing costs
(37.5
)
(39.2
)

$
3,961.3

$
3,915.6

Less:


Short term borrowings
$
16.9

$
12.9

Current portion of long-term borrowings
24.9

24.8

Long-term debt
$
3,919.5

$
3,877.9


Senior Secured Credit Facilities, as amended
On December 15, 2016 (the "Fourth Amendment Effective Date"), Axalta Coating Systems Dutch B B.V. (“Dutch B B.V.”) and its indirect 100% owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. (“Axalta US Holdings”) executed the fourth amendment (the "Fourth Amendment") to the credit agreement (the “Credit Agreement”) governing our Senior Secured Credit Facilities (as defined below). The Fourth Amendment (i) converted all of the outstanding U.S. 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 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").
On June 1, 2017 (the "Fifth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fifth amendment to the Credit Agreement (the "Fifth Amendment"). The Fifth Amendment converted all of the outstanding 2023 Dollar Term Loans into a new tranche of term loans with principal of $2,000.0 million (the "2024 Dollar Term Loans", together with the 2023 Euro Term Loans, the "Current Terms Loans", and with the Revolving Credit Facility, as defined herein, the "Senior Secured Credit Facilities"). The 2024 Dollar Term Loans were issued at 99.875% of par, or a $2.5 million discount.
Interest was and is payable quarterly on both the 2024 Dollar Term Loans and 2023 Term Loans.
The 2024 Dollar Term Loans are subject to a floor of zero plus an applicable rate of 2.00% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 1.00% per annum for Base Rate Loans as defined in the Credit Agreement.
Prior to the Fifth Amendment, interest on the 2023 Dollar Term Loans was subject to a floor of 0.75%, plus an applicable rate. The applicable rate for such 2023 Dollar Term Loans was 2.50% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 1.50% per annum for Base Rate Loans as defined in the Credit Agreement. The 2023 Euro Term Loans were also subject to a floor of 0.75%, plus an applicable rate of 2.25% per annum for Eurocurrency Rate Loans. The 2023 Euro Term Loans may not be Base Rate Loans.
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. and the guarantors. The 2023 Euro Term Loans mature on February 1, 2023 and 2024 Dollar Term Loans mature on June 1, 2024. Principal is paid quarterly on both the 2023 Term Loans and the 2024 Dollar Term Loans based on 1% per annum of the original principal amount outstanding on the most recent amendment 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, 2018, the Company is in compliance with all covenants under the Senior Secured Credit Facilities.
For additional information regarding a refinancing of the 2024 Dollar Term Loans and 2023 Euro Term Loans completed subsequent to March 31, 2018, refer to Note 23.
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 Credit Agreement (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, 2018, 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 on the Revolving Credit Facility since the issuance of the Senior Secured Credit Facilities. At March 31, 2018 and December 31, 2017, letters of credit issued under the Revolving Credit Facility totaled $34.8 million and $35.5 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $365.2 million and $364.5 million at March 31, 2018 and December 31, 2017, respectively.
Significant Terms of the Senior Notes
On August 16, 2016, Axalta Coating Systems, LLC ("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 15, 2024 (collectively the “2024 Senior Notes” and with the 2025 Euro Senior Notes, the “Senior Notes”).
The 2024 Senior Notes are fully and unconditionally guaranteed by Dutch B B.V. (“Parent Guarantor”).
On September 27, 2016, Dutch B B.V., as 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”).
The indentures governing the Senior Notes contain covenants that restrict the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates.
i) 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 U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the U.S. Issuer and guarantors. The 2024 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the 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 U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the 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, 2018.
Remainder of 2018
$
37.1

2019
26.8

2020
25.8

2021
25.9

2022
52.6

Thereafter
3,823.7

 
$
3,991.9


The table above excludes $15.7 million of debt associated with our sale-leaseback financings that will not be settled with cash.
v3.8.0.1
Fair Value Accounting
3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value Accounting
FAIR VALUE ACCOUNTING
Fair value of financial instruments
Equity securities with readily determinable fair values - The fair values of equity securities with readily determinable fair values at March 31, 2018 and December 31, 2017 were $4.3 million and $4.3 million, respectively. These balances are recorded within other assets, with any changes in fair value recored within other income, net. The exit price 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, 2018 were $501.9 million, $436.0 million and $579.4 million, respectively. The fair values at December 31, 2017 were $524.4 million, $427.7 million and $571.8 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 Senior Notes, these inputs are considered to be Level 2 inputs.
The fair values of the 2024 Dollar Term Loans and the 2023 Euro Term Loans at March 31, 2018 were $1,967.2 million and $486.1 million, respectively. The fair values at December 31, 2017 were $1,967.4 million and $475.5 million, respectively. The estimated fair values of the Current Term Loans are based on recent trades, as reported by a third-party pricing service, and due to the infrequency of the trades, 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 was $8.9 million for both March 31, 2018 and December 31, 2017. During the three months ended March 31, 2017 and the Company recorded gains of $1.7 million associated with the changes to fair value. Adjustments made to fair value were immaterial for the three months ended March 31, 2018. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy.
v3.8.0.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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, 2017, we entered into four 1.5% interest rate caps with aggregate notional amounts totaling $850 million to hedge the variable interest rate exposures on our 2024 Dollar Term Loans. Three of these interest rate caps, comprising $600 million of the notional value, expire December 31, 2019 and had a deferred premium of $8.6 million at inception. The fourth interest rate cap, comprising the remaining $250 million of the notional value, expires December 31, 2021 and had a deferred premium of $8.1 million at inception. All deferred premiums will be paid quarterly over the term of the respective interest rate caps.
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, 2018
December 31, 2017
Prepaid and other assets:
 
 
Interest rate caps
$
1.7

$

Other assets:
 
 
Interest rate caps
$
5.7

$
1.2

Total assets
$
7.4

$
1.2

Other accrued liabilities:
 
 
Interest rate caps
$

$
2.6

Total liabilities
$

$
2.6


For derivative instruments that qualify and are designated as cash flow hedges, the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and subsequently reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis.
The following tables set forth the locations and amounts recognized during the three months ended March 31, 2018 and 2017 for these cash flow hedges.
 
 
For the Three Months Ended March 31,
 
 
2018
2017
Derivatives in Cash Flow Hedging
Relationships
Location of (Gain) Loss Reclassified from 
AOCI into Income
Net Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
Amount of (Gain) Loss Reclassified from AOCI to Income
Net Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
Amount of (Gain) Loss Reclassified from AOCI to Income
Interest rate contracts
Interest expense, net
$
(8.0
)
$
0.1

$
(0.6
)
$
2.1

Derivative Instruments Not Designated as Cash Flow Hedges
We periodically enter into foreign currency forward and option contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other (income) expense, net in the condensed consolidated statement of operations.
During the year ended December 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 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 fair value of this interest rate cap at March 31, 2018 was zero.
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, 2018
December 31, 2017
Prepaid and other assets:
 
 
Foreign currency contracts
$
0.1

$

Total assets
$
0.1

$

Other accrued liabilities:
 
 
Foreign currency contracts
$
0.3

$
0.7

Total liabilities
$
0.3

$
0.7


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
2018
2017
Interest rate caps
Interest expense
$

$
0.3

Foreign currency forward contracts
Other income, net
$
1.4

$
0.1

v3.8.0.1
Segments
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segments
SEGMENTS
The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information.
We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets within this segment are refinish and industrial.
Through our Transportation Coatings segment, we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets within this segment are light vehicle and commercial vehicle.
Our business serves four end-markets globally as follows:
 
Three Months Ended March 31,
 
2018
2017
Performance Coatings
 
 
Refinish
$
412.6

$
388.6

Industrial
316.1

197.8

Total Net sales Performance Coatings
728.7

586.4

Transportation Coatings
 
 
Light Vehicle
349.5

340.0

Commercial Vehicle
87.6

81.4

Total Net sales Transportation Coatings
437.1

421.4

Total Net sales
$
1,165.8

$
1,007.8


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, 2018
 
 
 
Net sales (1)
$
728.7

$
437.1

$
1,165.8

Equity in earnings in unconsolidated affiliates
0.1

(0.1
)

Adjusted EBITDA (2)
143.2

76.8

220.0

Investment in unconsolidated affiliates
3.3

12.7

16.0

 
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

(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 have not occurred within the last two years or we believe 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,
 
2018
2017
Income before income taxes
$
82.8

$
75.8

Interest expense, net
39.4

35.8

Depreciation and amortization
91.9

82.4

EBITDA
214.1

194.0

Foreign exchange remeasurement gains (a)

(1.2
)
Long-term employee benefit plan adjustments (b)
(0.5
)
0.4

Termination benefits and other employee related costs (c)
(1.3
)
0.8

Consulting and advisory fees (d)

(0.1
)
Transition-related costs (e)
(0.2
)

Offering and transactional costs (f)
0.2

(1.0
)
Stock-based compensation (g)
8.4

10.4

Other adjustments (h)
0.3

0.2

Dividends in respect of noncontrolling interest (i)
(1.0
)
(0.4
)
Adjusted EBITDA
$
220.0

$
203.1


(a)
Eliminates foreign exchange gains 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 and associated adjustments to estimates primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(d)
Represents expenses and associated adjustments to estimates for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(e)
Represents integration costs and associated adjustments to estimates related to the 2017 acquisition of the Industrial Wood business that was a carve-out business from Valspar. We do not consider these items to be indicative of our ongoing operating performance.
(f)
Represents acquisition-related expenses, including changes in the fair value of contingent consideration, which are not considered indicative of our ongoing operating performance.
(g)
Represents non-cash costs associated with stock-based compensation.
(h)
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 gains and losses from the sale and disposal of property, plant and equipment, from the remaining foreign currency derivative instruments and from non-cash fair value inventory adjustments associated with business combinations.
(i)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
v3.8.0.1
Shareholders' Equity
3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Shareholders' Equity
SHAREHOLDERS' EQUITY
The following tables present the change in total shareholders’ equity for the three months ended March 31, 2018 and 2017, respectively.
 
Total Axalta
Noncontrolling
Interests
Total
Balance at December 31, 2017
$
1,276.1

$
131.7

$
1,407.8

Cumulative effect of an accounting change
12.1

0.1

12.2

Balance at January 1, 2018
$
1,288.2

$
131.8

$
1,420.0

Net income
69.9

1.1

71.0

Other comprehensive income, net of tax
49.1

0.9

50.0

Recognition of stock-based compensation
8.4


8.4

Exercise of stock options
6.2


6.2

Treasury share repurchase
(3.3
)

(3.3
)
Noncontrolling interests of acquired subsidiaries
2.9

(29.8
)
(26.9
)
Dividends paid to noncontrolling interests

(1.0
)
(1.0
)
Balance at March 31, 2018
$
1,421.4

$
103.0

$
1,524.4

 
Total Axalta
Noncontrolling
Interests
Total
Balance at December 31, 2016
$
1,125.1

$
121.5

$
1,246.6

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
$
1,249.0

$
123.8

$
1,372.8

v3.8.0.1
Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
Unrealized
Currency
Translation
Adjustments
Unrealized Pension
Adjustments
Unrealized
Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income (Loss)
Balance at December 31, 2017
$
(208.8
)
$
(31.4
)
$
0.8

$
(1.6
)
$
(241.0
)
Cumulative effect of an accounting change


(0.8
)

(0.8
)
Balance at January 1, 2018
(208.8
)
(31.4
)

(1.6
)
(241.8
)
Current year deferrals to AOCI
42.2



6.4

48.6

Reclassifications from AOCI to Net income

0.6


(0.1
)
0.5

Net Change
42.2

0.6


6.3

49.1

Balance at March 31, 2018
$
(166.6
)
$
(30.8
)
$

$
4.7

$
(192.7
)

The income tax benefit related to the changes in pension benefits for the three months ended March 31, 2018 was $0.3 million. The cumulative income tax benefit related to the adjustment for pension at March 31, 2018 was $13.3 million. The income tax expense related to the change in the unrealized gain on derivatives for the three months ended March 31, 2018 was $1.6 million. The cumulative income tax expense related to the adjustment for unrealized loss on derivatives at March 31, 2018 was $1.0 million.
 
Unrealized
Currency
Translation
Adjustments
Unrealized Pension
Adjustments
Unrealized Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income (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 benefits for the three months ended March 31, 2017 was $0.1 million. The cumulative income tax benefit related to the adjustment for pension benefits 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 adjustments for unrealized loss on derivatives at March 31, 2017 was $0.8 million.
v3.8.0.1
Venezuela
3 Months Ended
Mar. 31, 2018
Foreign Currency [Abstract]  
Foreign Currency Disclosure [Text Block]
VENEZUELA
During the three months ended June 30, 2017, we concluded there was an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. This lack of exchangeability restricted our Venezuelan subsidiary's ability to pay dividends or settle intercompany obligations, which severely limited our ability to realize the benefits from earnings of our Venezuelan operations and access the resulting liquidity provided by those earnings.
Based on the fact that, as of that time, we believed this lack of exchangeability would continue, along with the continued political unrest, the drop in demand for our business and the expected losses we were forecasting for the foreseeable future, we concluded that we no longer met the accounting criteria of control in order to continue consolidating our Venezuelan operations. As a result of this change, the value of the investment and all previous intercompany balances are now recorded at zero. Further, our condensed consolidated balance sheet and statement of operations no longer include the results of our Venezuelan operations. We will recognize income only to the extent that we are paid for inventory we sell or receive cash dividends from our Venezuelan legal entity.
For the three months ended March 31, 2017, our Venezuelan subsidiary's net sales represented $1.9 million of the Company's consolidated net sales.
v3.8.0.1
Subsequent Events
3 Months Ended
Mar. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events
SUBSEQUENT EVENTS
In April 2018, we entered into the sixth amendment to the Credit Agreement (the "Sixth Amendment"), which repriced the 2024 Dollar Term Loans and increased the aggregate principal balance of our 2024 Dollar Term Loans by $475 million to $2,430.0 million. Proceeds from the Sixth Amendment, along with cash on the balance sheet, were used to extinguish the existing 2023 Euro Term Loans.
Concurrent with the refinancing, we executed a cross-currency interest rate swap to convert $475 million of the 2024 Dollar Term Loans principal into Euro fixed-rate debt at an interest rate of 1.95%, which matures in March 2023.
v3.8.0.1
Recent Accounting Guidance (Policies)
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy
Accounting Guidance Issued But Not Yet Adopted
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.
Recently Adopted Accounting Guidance
In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2017-12, "Derivatives and Hedging", which modifies the presentation and disclosure of hedging results and provides partial relief on the timing of certain aspects of hedge documentation including the elimination of the requirement to recognize hedge ineffectiveness separately in earnings. We elected to early adopt this standard on January 1, 2018 using the modified retrospective approach. We recorded a cumulative adjustment for previously recognized ineffectiveness to retained earnings at January 1, 2018. This did not result in a material impact to our financial statements.
In March 2017, the 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 statement of operations separately from the service cost component and outside a subtotal of income from operations. On January 1, 2018 we retrospectively adopted this standard, which resulted in an increase and a decrease of amounts previously reported as cost of goods sold and selling, general and administrative expenses of $0.3 million and $0.7 million, respectively, which were offset by a corresponding increase in previously reported other income, net of $0.4 million for the three months ended March 31, 2017.
On January 1, 2018, we adopted ASU 2017-01, "Clarifying the Definition of a Business", which sets forth the accounting guidance that assists in the determination of whether a set of transferred assets and activities is a business. This new guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business; whereas, if the threshold is not met, the entity evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue guidance.
On January 1, 2018, we adopted ASU 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities", which requires equity investments in unconsolidated entities, excluding those accounted for using the equity method of accounting, to be remeasured at exit price fair value, with changes recorded in the statement of operations. This standard was adopted using the modified retrospective application resulting in a cumulative adjustment to retained earnings at January 1, 2018. This did not result in a material impact to our financial statements.
On January 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers”, and all related amendments comprising ASC 606 (the “new revenue standard”), electing to use the modified retrospective method. We also elected to apply certain practical expedients, including the application of the modified retrospective method to open contracts at December 31, 2017. Comparative information has not been recasted and continues to be reported under historical U.S. GAAP in effect to those applicable periods. The following table summarizes the cumulative effect made to our condensed consolidated balance sheet as a result of the adoption to this standard.
v3.8.0.1
Recent Accounting Guidance (Tables)
3 Months Ended
Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
The following table summarizes the cumulative effect made to our condensed consolidated balance sheet as a result of the adoption to this standard.
 
December 31, 2017
Adjustments due to ASU 2014-09
January 1, 2018
Assets
 
 
 
Inventories
$
608.6

$
(22.7
)
$
585.9

Prepaid expenses and other (1)
63.9

41.7

105.6

Other assets (2)
428.6

(1.9
)
426.7

 
 
 
 
Liabilities
 
 
 
Other accrued liabilities (3)
$
489.6

$
1.9

$
491.5

Deferred income taxes
152.9

3.0

155.9

 
 
 
 
Equity
 
 
 
Accumulated deficit
$
(21.4
)
$
12.1

$
(9.3
)
Noncontrolling interests
131.7

0.1

131.8

(1)
Includes the impact to contract assets resulting from the modified retrospective adoption of the new revenue standard.
(2)
Includes the impacts to deferred income taxes resulting from the modified retrospective adoption of the new revenue standard.
(3)
Includes the impacts of estimated variable consideration on certain arrangements in our refinish end-market.
The following tables summarizes the impact to our condensed consolidated statements of operations and balance sheets in accordance with the new revenue standard:
 
For the three months ended March 31, 2018
Condensed Consolidated Statement of Operations
As reported
Prior to ASU 2014-09
Increases / (Decreases)
Net sales
$
1,165.8

$
1,160.0

$
5.8

Cost of goods sold
776.0

760.0

16.0

Selling, general and administrative expenses
227.8

241.5

(13.7
)
Provision for income taxes
11.8

11.2

0.6

Net income
71.0

68.1

2.9

Less: Net income attributable to noncontrolling interests
1.1

0.9

0.2

Net income attributable to controlling interests
$
69.9

$
67.2

$
2.7

 
At March 31, 2018
Condensed Consolidated Balance Sheet
As reported
Prior to ASU 2014-09
Increases / (Decreases)
Assets
 
 
 
Inventories
$
641.8

$
667.2

$
(25.4
)
Prepaid expenses and other
116.9

69.1

47.8

Other assets
448.1

450.4

(2.3
)
 
 

 
Liabilities
 

 
Other accrued liabilities
$
407.7

$
405.8

$
1.9

Deferred income taxes
167.1

164.0

3.1

 
 

 
Equity
 

 
Retained earnings
$
61.4

$
46.6

$
14.8

Noncontrolling interests
103.0

102.7

0.3

v3.8.0.1
Revenue (Tables)
3 Months Ended
Mar. 31, 2018
Revenue from Contract with Customer [Abstract]  
Summary of Impact of ASC 606 on Financial Statements
The following table summarizes the cumulative effect made to our condensed consolidated balance sheet as a result of the adoption to this standard.
 
December 31, 2017
Adjustments due to ASU 2014-09
January 1, 2018
Assets
 
 
 
Inventories
$
608.6

$
(22.7
)
$
585.9

Prepaid expenses and other (1)
63.9

41.7

105.6

Other assets (2)
428.6

(1.9
)
426.7

 
 
 
 
Liabilities
 
 
 
Other accrued liabilities (3)
$
489.6

$
1.9

$
491.5

Deferred income taxes
152.9

3.0

155.9

 
 
 
 
Equity
 
 
 
Accumulated deficit
$
(21.4
)
$
12.1

$
(9.3
)
Noncontrolling interests
131.7

0.1

131.8

(1)
Includes the impact to contract assets resulting from the modified retrospective adoption of the new revenue standard.
(2)
Includes the impacts to deferred income taxes resulting from the modified retrospective adoption of the new revenue standard.
(3)
Includes the impacts of estimated variable consideration on certain arrangements in our refinish end-market.
The following tables summarizes the impact to our condensed consolidated statements of operations and balance sheets in accordance with the new revenue standard:
 
For the three months ended March 31, 2018
Condensed Consolidated Statement of Operations
As reported
Prior to ASU 2014-09
Increases / (Decreases)
Net sales
$
1,165.8

$
1,160.0

$
5.8

Cost of goods sold
776.0

760.0

16.0

Selling, general and administrative expenses
227.8

241.5

(13.7
)
Provision for income taxes
11.8

11.2

0.6

Net income
71.0

68.1

2.9

Less: Net income attributable to noncontrolling interests
1.1

0.9

0.2

Net income attributable to controlling interests
$
69.9

$
67.2

$
2.7

 
At March 31, 2018
Condensed Consolidated Balance Sheet
As reported
Prior to ASU 2014-09
Increases / (Decreases)
Assets
 
 
 
Inventories
$
641.8

$
667.2

$
(25.4
)
Prepaid expenses and other
116.9

69.1

47.8

Other assets
448.1

450.4

(2.3
)
 
 

 
Liabilities
 

 
Other accrued liabilities
$
407.7

$
405.8

$
1.9

Deferred income taxes
167.1

164.0

3.1

 
 

 
Equity
 

 
Retained earnings
$
61.4

$
46.6

$
14.8

Noncontrolling interests
103.0

102.7

0.3

v3.8.0.1
Acquisitions (Tables)
3 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
After all required adjustments, the Company paid an aggregate purchase price of $430.3 million, which was comprised of the following:
 
June 1, 2017 (As Initially Reported)
Measurement Period Adjustments
June 1, 2017
(As Adjusted)
Accounts and notes receivable—trade
$
23.3

$

$
23.3

Inventories
24.9

(0.2
)
24.7

Prepaid expenses and other
0.2


0.2

Property, plant and equipment
23.0

0.1

23.1

Identifiable intangibles
254.2

4.9

259.1

Accounts payable
(22.4
)
0.2

(22.2
)
Other accrued liabilities
(5.1
)
0.4

(4.7
)
Net assets acquired before goodwill on acquisition
298.1

5.4

303.5

Goodwill on acquisition
132.6

(5.8
)
126.8

Net assets acquired
$
430.7

$
(0.4
)
$
430.3

Business Acquisition, Pro Forma Information
The following supplemental pro forma information represents the results of operations as if the Company had acquired the Industrial Wood business on January 1, 2016:
 
For the three months ended
 (in millions, except per share data)
March 31, 2017
Net sales
$
1,069.6

Net income
$
67.9

Net income attributable to controlling interests
$
66.1

Net income per share (Basic)
$
0.28

Net income per share (Diluted)
$
0.27

v3.8.0.1
Goodwill and Identifiable Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table shows changes in the carrying amount of goodwill from December 31, 2017 to March 31, 2018 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
At December 31, 2017
$
1,189.2

$
82.0

$
1,271.2

Purchase accounting adjustments
(0.2
)

(0.2
)
Foreign currency translation
31.3

2.1

33.4

At March 31, 2018
$
1,220.3

$
84.1

$
1,304.4

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class
The following tables summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
March 31, 2018
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
567.3

$
(230.9
)
$
336.4

10.3
Trademarks - indefinite-lived
283.5


283.5

Indefinite
Trademarks - definite-lived
105.3

(19.8
)
85.5

15.8
Customer relationships
958.8

(193.0
)
765.8

19.0
Non-compete agreements and other
17.2

(4.2
)
13.0

4.8
Total
$
1,932.1

$
(447.9
)
$
1,484.2

 
December 31, 2017
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
498.0

$
(213.6
)
$
284.4

10.5
Trademarks - indefinite-lived
277.2


277.2

Indefinite
Trademarks - definite-lived
102.6

(17.7
)
84.9

15.9
Customer relationships
945.1

(176.8
)
768.3

19.0
Non-compete agreements and other
16.6

(3.2
)
13.4

4.8
Total
$
1,839.5

$
(411.3
)
$
1,428.2

 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2018 and each of the succeeding five years is:
Remainder of 2018
$
89.9

2019
$
118.9

2020
$
117.5

2021
$
116.2

2022
$
114.1

2023
$
72.6

v3.8.0.1
Restructuring (Tables)
3 Months Ended
Mar. 31, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2017 to March 31, 2018:
 
2018 Activity
Balance at December 31, 2017
$
71.5

Expenses, net of adjustments to estimates
(0.9
)
Payments made
(25.1
)
Foreign currency translations
1.9

Balance at March 31, 2018
$
47.4

v3.8.0.1
Commitments and Contingencies Commitments and Contingencies (Tables)
3 Months Ended
Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Sale Leaseback Transactions [Table Text Block]
The table below reflects the total remaining cash payments related to both transactions during the rental term as of March 31, 2018:
 
Sale-leaseback obligations
Remainder of 2018
$
4.0

2019
5.4

2020
5.5

2021
5.6

2022
5.8

Thereafter
84.2

Total minimum payments
$
110.5

v3.8.0.1
Long-term Employee Benefits (Tables)
3 Months Ended
Mar. 31, 2018
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs
The following table sets forth the components of net periodic benefit cost for the three months ended March 31, 2018 and 2017. Service costs are recorded within cost of goods sold and selling, general and administrative expenses depending on the respective functions of the employees, whereas non-service costs are recorded within other income, net.
 
Three Months Ended March 31,
 
2018
2017
Components of net periodic benefit cost:
 
 
Net periodic benefit cost:
 
 
Service cost
$
2.3

$
2.1

Interest cost
3.4

3.4

Expected return on plan assets
(4.2
)
(3.5
)
Amortization of actuarial loss, net
0.3

0.5

Net periodic benefit cost
$
1.8

$
2.5

v3.8.0.1
Stock-based Compensation (Tables)
3 Months Ended
Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Stock Options Roll Forward
A summary of award activity by type for the three months ended March 31, 2018 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, 2018
8.1

$
16.54

 
 
Granted
0.8

$
29.81

 
 
Exercised
(0.5
)
$
12.03

 
 
Forfeited
(0.1
)
$
28.82

 
 
Outstanding at March 31, 2018
8.3

$
17.98

 
 
Vested and expected to vest at March 31, 2018
8.3

$
17.98

$
103.7

6.62
Exercisable at March 31, 2018
6.4

$
14.57

$
100.9

5.94
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]
Restricted Stock Awards and Restricted Stock Units
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2018
1.9

$
29.32

Granted
0.6

29.93

Vested
(0.4
)
26.04

Forfeited


Outstanding at March 31, 2018
2.1

$
30.09

Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block]
Performance Stock Awards and Performance Share Units
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2018
0.6

$
31.17

Granted
0.3

33.77

Vested


Forfeited


Outstanding at March 31, 2018
0.9

$
32.08

v3.8.0.1
Other Income, Net (Tables)
3 Months Ended
Mar. 31, 2018
Other Income and Expenses [Abstract]  
Schedule of Other Nonoperating Income (Expense)
 
Three Months Ended March 31,
 
2018
2017
Foreign exchange gains, net
$

$
(1.2
)
Other miscellaneous income, net
(2.2
)

Total
$
(2.2
)
$
(1.2
)
v3.8.0.1
Income Taxes (Tables)
3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
Our effective income tax rates for the three months ended March 31, 2018 and 2017 are as follows:
 
Three Months Ended March 31,
 
2018
2017
Effective Tax Rate
14.3
%
13.1
%
v3.8.0.1
Net Income Per Common Share (Tables)
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
A reconciliation of our basic and diluted net income per common share is as follows:
 
Three Months Ended March 31,
(In millions, except per share data)
2018
2017
Net income attributable to controlling interests
$
69.9

$
64.1

Basic weighted average shares outstanding
240.9

239.8

Diluted weighted average shares outstanding
245.8

246.1

Earnings per common share:
 
 
Basic net income per share
$
0.29

$
0.27

Diluted net income per share
$
0.28

$
0.26

v3.8.0.1
Accounts and Notes Receivable, Net (Tables)
3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
 
March 31, 2018
December 31, 2017
Accounts receivable—trade, net
$
824.0

$
748.2

Notes receivable
24.5

29.4

Other
92.4

92.6

Total
$
940.9

$
870.2

v3.8.0.1
Inventories (Tables)
3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current
 
March 31, 2018
December 31, 2017
Finished products
$
358.8

$
347.5

Semi-finished products
101.2

95.5

Raw materials and supplies
181.8

165.6

Total
$
641.8

$
608.6

v3.8.0.1
Property, Plant and Equipment, Net (Tables)
3 Months Ended
Mar. 31, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
 
March 31, 2018
December 31, 2017
Property, plant and equipment
$
2,270.3

$
2,193.6

Accumulated depreciation
(862.5
)
(805.0
)
Property, plant and equipment, net
$
1,407.8

$
1,388.6

v3.8.0.1
Borrowings (Tables)
3 Months Ended
Mar. 31, 2018
Debt Instrument [Line Items]  
Schedule of Debt
Borrowings are summarized as follows:
 
March 31, 2018
December 31, 2017
2024 Dollar Term Loans
$
1,955.0

$
1,960.0

2023 Euro Term Loans
486.1

472.5

2024 Dollar Senior Notes
500.0

500.0

2024 Euro Senior Notes
412.3

399.7

2025 Euro Senior Notes
553.8

536.9

Short-term and other borrowings
100.4

94.8

Unamortized original issue discount
(8.8
)
(9.1
)
Unamortized deferred financing costs
(37.5
)
(39.2
)

$
3,961.3

$
3,915.6

Less:


Short term borrowings
$
16.9

$
12.9

Current portion of long-term borrowings
24.9

24.8

Long-term debt
$
3,919.5

$
3,877.9

Schedule of Maturities of Long-term Debt
Below is a schedule of required future repayments of all borrowings outstanding at March 31, 2018.
Remainder of 2018
$
37.1

2019
26.8

2020
25.8

2021
25.9

2022
52.6

Thereafter
3,823.7

 
$
3,991.9

2024 Dollar Senior Notes [Member]  
Debt Instrument [Line Items]  
Debt Instrument Redemption
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
%
2024 Euro Senior Notes [Member]  
Debt Instrument [Line Items]  
Debt Instrument Redemption
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
%
2025 Euro Senior Notes [Member]  
Debt Instrument [Line Items]  
Debt Instrument Redemption
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
%
v3.8.0.1
Derivative Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2018
Derivative [Line Items]  
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following tables set forth the locations and amounts recognized during the three months ended March 31, 2018 and 2017 for these cash flow hedges.
 
 
For the Three Months Ended March 31,
 
 
2018
2017
Derivatives in Cash Flow Hedging
Relationships
Location of (Gain) Loss Reclassified from 
AOCI into Income
Net Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
Amount of (Gain) Loss Reclassified from AOCI to Income
Net Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
Amount of (Gain) Loss Reclassified from AOCI to Income
Interest rate contracts
Interest expense, net
$
(8.0
)
$
0.1

$
(0.6
)
$
2.1

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
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
2018
2017
Interest rate caps
Interest expense
$

$
0.3

Foreign currency forward contracts
Other income, net
$
1.4

$
0.1

Designated as Hedging Instrument [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
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, 2018
December 31, 2017
Prepaid and other assets:
 
 
Interest rate caps
$
1.7

$

Other assets:
 
 
Interest rate caps
$
5.7

$
1.2

Total assets
$
7.4

$
1.2

Other accrued liabilities:
 
 
Interest rate caps
$

$
2.6

Total liabilities
$

$
2.6

Not Designated as Hedging Instrument [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
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, 2018
December 31, 2017
Prepaid and other assets:
 
 
Foreign currency contracts
$
0.1

$

Total assets
$
0.1

$

Other accrued liabilities:
 
 
Foreign currency contracts
$
0.3

$
0.7

Total liabilities
$
0.3

$
0.7

v3.8.0.1
Segments (Tables)
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
Our business serves four end-markets globally as follows:
 
Three Months Ended March 31,
 
2018
2017
Performance Coatings
 
 
Refinish
$
412.6

$
388.6

Industrial
316.1

197.8

Total Net sales Performance Coatings
728.7

586.4

Transportation Coatings
 
 
Light Vehicle
349.5

340.0

Commercial Vehicle
87.6

81.4

Total Net sales Transportation Coatings
437.1

421.4

Total Net sales
$
1,165.8

$
1,007.8

Schedule of Segment Reporting Information, by Segment
 
Performance
Coatings
Transportation
Coatings
Total
For the Three Months Ended March 31, 2018
 
 
 
Net sales (1)
$
728.7

$
437.1

$
1,165.8

Equity in earnings in unconsolidated affiliates
0.1

(0.1
)

Adjusted EBITDA (2)
143.2

76.8

220.0

Investment in unconsolidated affiliates
3.3

12.7

16.0

 
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

(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 have not occurred within the last two years or we believe 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 Operating Profit (Loss) from Segments to Consolidated
Reconciliation of Adjusted EBITDA to income before income taxes follows:
 
Three Months Ended March 31,
 
2018
2017
Income before income taxes
$
82.8

$
75.8

Interest expense, net
39.4

35.8

Depreciation and amortization
91.9

82.4

EBITDA
214.1

194.0

Foreign exchange remeasurement gains (a)

(1.2
)
Long-term employee benefit plan adjustments (b)
(0.5
)
0.4

Termination benefits and other employee related costs (c)
(1.3
)
0.8

Consulting and advisory fees (d)

(0.1
)
Transition-related costs (e)
(0.2
)

Offering and transactional costs (f)
0.2

(1.0
)
Stock-based compensation (g)
8.4

10.4

Other adjustments (h)
0.3

0.2

Dividends in respect of noncontrolling interest (i)
(1.0
)
(0.4
)
Adjusted EBITDA
$
220.0

$
203.1


(a)
Eliminates foreign exchange gains 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 and associated adjustments to estimates primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(d)
Represents expenses and associated adjustments to estimates for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(e)
Represents integration costs and associated adjustments to estimates related to the 2017 acquisition of the Industrial Wood business that was a carve-out business from Valspar. We do not consider these items to be indicative of our ongoing operating performance.
(f)
Represents acquisition-related expenses, including changes in the fair value of contingent consideration, which are not considered indicative of our ongoing operating performance.
(g)
Represents non-cash costs associated with stock-based compensation.
(h)
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 gains and losses from the sale and disposal of property, plant and equipment, from the remaining foreign currency derivative instruments and from non-cash fair value inventory adjustments associated with business combinations.
(i)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
v3.8.0.1
Shareholders' Equity (Tables)
3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Schedule of Stockholders Equity
The following tables present the change in total shareholders’ equity for the three months ended March 31, 2018 and 2017, respectively.
 
Total Axalta
Noncontrolling
Interests
Total
Balance at December 31, 2017
$
1,276.1

$
131.7

$
1,407.8

Cumulative effect of an accounting change
12.1

0.1

12.2

Balance at January 1, 2018
$
1,288.2

$
131.8

$
1,420.0

Net income
69.9

1.1

71.0

Other comprehensive income, net of tax
49.1

0.9

50.0

Recognition of stock-based compensation
8.4


8.4

Exercise of stock options
6.2


6.2

Treasury share repurchase
(3.3
)

(3.3
)
Noncontrolling interests of acquired subsidiaries
2.9

(29.8
)
(26.9
)
Dividends paid to noncontrolling interests

(1.0
)
(1.0
)
Balance at March 31, 2018
$
1,421.4

$
103.0

$
1,524.4

 
Total Axalta
Noncontrolling
Interests
Total
Balance at December 31, 2016
$
1,125.1

$
121.5

$
1,246.6

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
$
1,249.0

$
123.8

$
1,372.8

v3.8.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income
 
Unrealized
Currency
Translation
Adjustments
Unrealized Pension
Adjustments
Unrealized
Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income (Loss)
Balance at December 31, 2017
$
(208.8
)
$
(31.4
)
$
0.8

$
(1.6
)
$
(241.0
)
Cumulative effect of an accounting change


(0.8
)

(0.8
)
Balance at January 1, 2018
(208.8
)
(31.4
)

(1.6
)
(241.8
)
Current year deferrals to AOCI
42.2



6.4

48.6

Reclassifications from AOCI to Net income

0.6


(0.1
)
0.5

Net Change
42.2

0.6


6.3

49.1

Balance at March 31, 2018
$
(166.6
)
$
(30.8
)
$

$
4.7

$
(192.7
)
 
Unrealized
Currency
Translation
Adjustments
Unrealized Pension
Adjustments
Unrealized Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income (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
)
v3.8.0.1
Recent Accounting Guidance (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Inventories $ 641.8 $ 585.9 $ 608.6
Prepaid expenses and other 116.9 105.6 63.9
Other assets 448.1 426.7 428.6
Other accrued liabilities 407.7 491.5 489.6
Deferred income taxes 167.1 155.9 152.9
Retained earnings (Accumulated deficit) 61.4 (9.3) (21.4)
Noncontrolling interests 103.0 131.8 131.7
Accounting Standard 2017-07 [Member] | Cost of Goods, Total [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Adjustment for ASU 2017-07 0.3    
Accounting Standard 2017-07 [Member] | Selling, General and Administrative Expenses [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Adjustment for ASU 2017-07 (0.7)    
Accounting Standard 2017-07 [Member] | Other Income [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Adjustment for ASU 2017-07 0.4    
Calculated under Revenue Guidance in Effect before Topic 606 [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Inventories 667.2   608.6
Prepaid expenses and other 69.1   63.9
Other assets 450.4   428.6
Other accrued liabilities 405.8   489.6
Deferred income taxes 164.0   152.9
Retained earnings (Accumulated deficit) 46.6   (21.4)
Noncontrolling interests 102.7   $ 131.7
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Inventories (25.4) (22.7)  
Prepaid expenses and other 47.8 41.7  
Other assets (2.3) (1.9)  
Other accrued liabilities 1.9 1.9  
Deferred income taxes 3.1 3.0  
Retained earnings (Accumulated deficit) 14.8 12.1  
Noncontrolling interests $ 0.3 $ 0.1  
v3.8.0.1
Revenue - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Weighted average useful life 5 years    
Business Incentive Plan Asset [Member]      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
BIPs $ 174.3   $ 173.0
BIPs amortization 16.3 $ 16.9  
Prepaid Expenses and Other Current Assets [Member]      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Contract with customer, asset, net $ 47.8   $ 41.7
v3.8.0.1
Revenue - Impact on Statement of Operations (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Net sales $ 1,165.8 $ 1,007.8
Cost of goods sold 776.0 641.4
Selling, general and administrative expenses 227.8 224.6
Provision for income taxes 11.8 9.9
Net income 71.0 65.9
Less: Net income attributable to noncontrolling interests 1.1 1.8
Net income attributable to controlling interests 69.9 $ 64.1
Calculated under Revenue Guidance in Effect before Topic 606 [Member]    
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Net sales 1,160.0  
Cost of goods sold 760.0  
Selling, general and administrative expenses 241.5  
Provision for income taxes 11.2  
Net income 68.1  
Less: Net income attributable to noncontrolling interests 0.9  
Net income attributable to controlling interests 67.2  
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]    
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Net sales 5.8  
Cost of goods sold 16.0  
Selling, general and administrative expenses (13.7)  
Provision for income taxes 0.6  
Net income 2.9  
Less: Net income attributable to noncontrolling interests 0.2  
Net income attributable to controlling interests $ 2.7  
v3.8.0.1
Revenue - Impact on Balance Sheet (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Assets      
Inventories $ 641.8 $ 585.9 $ 608.6
Prepaid expenses and other 116.9 105.6 63.9
Other assets 448.1 426.7 428.6
Liabilities      
Other accrued liabilities 407.7 491.5 489.6
Deferred income taxes 167.1 155.9 152.9
Equity      
Retained earnings (Accumulated deficit) 61.4 (9.3) (21.4)
Noncontrolling interests 103.0 131.8 131.7
Calculated under Revenue Guidance in Effect before Topic 606 [Member]      
Assets      
Inventories 667.2   608.6
Prepaid expenses and other 69.1   63.9
Other assets 450.4   428.6
Liabilities      
Other accrued liabilities 405.8   489.6
Deferred income taxes 164.0   152.9
Equity      
Retained earnings (Accumulated deficit) 46.6   (21.4)
Noncontrolling interests 102.7   $ 131.7
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]      
Assets      
Inventories (25.4) (22.7)  
Prepaid expenses and other 47.8 41.7  
Other assets (2.3) (1.9)  
Liabilities      
Other accrued liabilities 1.9 1.9  
Deferred income taxes 3.1 3.0  
Equity      
Retained earnings (Accumulated deficit) 14.8 12.1  
Noncontrolling interests $ 0.3 $ 0.1  
v3.8.0.1
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - Industrial Wood Acquisition [Member]
$ in Millions
Jun. 01, 2017
USD ($)
Business Acquisition [Line Items]  
Accounts and notes receivable—trade $ 23.3
Inventories 24.7
Prepaid expenses and other 0.2
Property, plant and equipment 23.1
Identifiable intangibles 259.1
Accounts payable 22.2
Other accrued liabilities 4.7
Net assets acquired before goodwill on acquisition 303.5
Goodwill on acquisition 126.8
Net assets acquired 430.3
Scenario, Previously Reported [Member]  
Business Acquisition [Line Items]  
Accounts and notes receivable—trade 23.3
Inventories 24.9
Prepaid expenses and other 0.2
Property, plant and equipment 23.0
Identifiable intangibles 254.2
Accounts payable 22.4
Other accrued liabilities 5.1
Net assets acquired before goodwill on acquisition 298.1
Goodwill on acquisition 132.6
Net assets acquired 430.7
Scenario, Adjustment [Member]  
Business Acquisition [Line Items]  
Accounts and notes receivable—trade 0.0
Inventories (0.2)
Prepaid expenses and other 0.0
Property, plant and equipment 0.1
Identifiable intangibles 4.9
Accounts payable (0.2)
Other accrued liabilities (0.4)
Net assets acquired before goodwill on acquisition 5.4
Goodwill on acquisition (5.8)
Net assets acquired $ (0.4)
v3.8.0.1
Acquisitions - Additional Information (Details)
$ in Millions
3 Months Ended
Jun. 01, 2017
USD ($)
Mar. 31, 2018
USD ($)
business
Mar. 31, 2017
USD ($)
Business Acquisition [Line Items]      
Percentage of voting interests acquired   24.50%  
Investment in non-controlling interest   $ 26.9 $ 0.0
Ownership percentage by parent   75.50%  
Industrial Wood Acquisition [Member]      
Business Acquisition [Line Items]      
Payments to acquire businesses, gross $ 420.0    
Net assets acquired $ 430.3    
Revenue of acquiree since acquisition date   $ 62.3  
Earnings or loss of acquiree since acquisition date   (7.6)  
2018 Acquisitions [Member]      
Business Acquisition [Line Items]      
Payments to acquire businesses, gross   $ 75.4  
Number of businesses acquired | business   2  
Finite-lived intangible assets acquired   $ 61.6  
Weighted average amortization periods (years)   9 years  
v3.8.0.1
Acquisitions - Pro Forma Information (Details) - Industrial Wood Acquisition [Member]
$ / shares in Units, $ in Millions
3 Months Ended
Mar. 31, 2017
USD ($)
$ / shares
Business Acquisition [Line Items]  
Net sales $ 1,069.6
Net income 67.9
Net income attributable to controlling interests $ 66.1
Net income per share (Basic) (in dollars per share) | $ / shares $ 0.28
Net income per share (Diluted) (in dollars per share) | $ / shares $ 0.27
v3.8.0.1
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details)
$ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Goodwill [Roll Forward]  
Goodwill, beginning balance $ 1,271.2
Purchase accounting adjustments (0.2)
Foreign currency translation 33.4
Goodwill, ending balance 1,304.4
Performance Coatings [Member]  
Goodwill [Roll Forward]  
Goodwill, beginning balance 1,189.2
Purchase accounting adjustments (0.2)
Foreign currency translation 31.3
Goodwill, ending balance 1,220.3
Transportation Coatings [Member]  
Goodwill [Roll Forward]  
Goodwill, beginning balance 82.0
Purchase accounting adjustments 0.0
Foreign currency translation 2.1
Goodwill, ending balance $ 84.1
v3.8.0.1
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount $ 1,932.1 $ 1,839.5
Accumulated Amortization (447.9) (411.3)
Net Book Value, definite-lived 1,484.2 1,428.2
Trademarks [Member]    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Net Book Value, indefinite-lived 283.5 277.2
Technology-Based Intangible Assets [Member]    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount 567.3 498.0
Accumulated Amortization (230.9) (213.6)
Net Book Value, definite-lived $ 336.4 $ 284.4
Weighted average amortization periods (years) 10 years 3 months 16 days 10 years 5 months 25 days
Trademarks [Member]    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount $ 105.3 $ 102.6
Accumulated Amortization (19.8) (17.7)
Net Book Value, definite-lived $ 85.5 $ 84.9
Weighted average amortization periods (years) 15 years 9 months 20 days 15 years 10 months 30 days
Customer Relationships [Member]    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount $ 958.8 $ 945.1
Accumulated Amortization (193.0) (176.8)
Net Book Value, definite-lived $ 765.8 $ 768.3
Weighted average amortization periods (years) 19 years 19 years
Other Intangible Assets [Member]    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount $ 17.2 $ 16.6
Accumulated Amortization (4.2) (3.2)
Net Book Value, definite-lived $ 13.0 $ 13.4
Weighted average amortization periods (years) 4 years 9 months 4 years 9 months
v3.8.0.1
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details)
$ in Millions
Mar. 31, 2018
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Remainder of 2018 $ 89.9
2019 118.9
2020 117.5
2021 116.2
2022 114.1
2023 $ 72.6
v3.8.0.1
Restructuring - Additional Information (Details)
3 Months Ended
Mar. 31, 2018
Minimum [Member]  
Restructuring Cost and Reserve [Line Items]  
Payment term (in months) 12 months
Maximum [Member]  
Restructuring Cost and Reserve [Line Items]  
Payment term (in months) 15 months
v3.8.0.1
Restructuring - Restructuring Reserve (Details)
$ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Restructuring Reserve [Roll Forward]  
Beginning balance $ 71.5
Expenses, net of adjustments to estimates (0.9)
Payments made (25.1)
Foreign currency translations 1.9
Ending balance $ 47.4
v3.8.0.1
Commitments and Contingencies Schedule if Sales Leaseback Transactions (Details)
$ in Millions
Mar. 31, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Remainder of 2018 Sales Leaseback Payments $ 4.0
2019 Sales Leaseback Payments 5.4
2020 Sales Leaseback Payments 5.5
2021 Sales Leaseback Payments 5.6
2022 Sales Leaseback Payments 5.8
Thereafter Sales Leaseback Payments 84.2
Sales Leaseback Total Minimum Lease Payments $ 110.5
v3.8.0.1
Commitments and Contingencies (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]    
Outstanding bank guarantees $ 14.5 $ 15.2
Bank guarantees liability recorded $ 0.0 $ 0.0
v3.8.0.1
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - Pension Plan [Member] - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Net periodic benefit cost:    
Service cost $ 2.3 $ 2.1
Interest cost 3.4 3.4
Expected return on plan assets (4.2) (3.5)
Amortization of actuarial loss, net 0.3 0.5
Net periodic benefit (gain) cost $ 1.8 $ 2.5
v3.8.0.1
Stock-based Compensation - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation expense $ 8.4 $ 10.4
Tax benefit from compensation expense 1.5 2.9
Proceeds from option exercises 6.2 $ 8.8
Tax benefit from exercise of stock options 2.0  
Compensation not yet recognized $ 9.1  
Performance Shares [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Period for recognition of compensation not yet recognized 2 years 3 months 29 days  
Compensation not yet recognized $ 20.2  
Employee Stock Option [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Period for recognition of compensation not yet recognized 1 year 8 months 26 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 1 year 8 months 21 days  
Tax benefit realized from exercise of restricted stock $ 0.4  
Compensation not yet recognized $ 30.3  
v3.8.0.1
Stock-based Compensation - Schedule of Stock Options Roll Forward (Details)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
$ / shares
shares
Awards/Units (in millions)  
Beginning balance | shares 8.1
Granted | shares 0.8
Exercised | shares (0.5)
Forfeited | shares (0.1)
Ending balance | shares 8.3
Weighted- Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 16.54
Granted (in dollars per share) | $ / shares 29.81
Exercised (in dollars per share) | $ / shares 12.03
Forfeited (in dollars per share) | $ / shares 28.82
Ending balance (in dollars per share) | $ / shares $ 17.98
Vested and Expected to Vest  
Vested and expected to vest, shares | shares 8.3
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares $ 17.98
Vested and expected to vest, aggregate intrinsic value | $ $ 103.7
Vested and expected to vest, weighted average remaining contractual term 6 years 7 months 13 days
Exercisable  
Exercisable, shares | shares 6.4
Exercisable, weighted average exercise price (in dollars per share) | $ / shares $ 14.57
Exercisable, aggregate intrinsic value | $ $ 100.9
Exercisable, weighted average remaining contractual term 5 years 11 months 7 days
v3.8.0.1
Stock-based Compensation - Schedule of Share-based Compensation, Restricted Stock and Restricted Units Activity (Details) - Restricted Stock and Restricted Stock Units [Member]
shares in Millions
3 Months Ended
Mar. 31, 2018
$ / shares
shares
Awards (millions)  
Beginning balance | shares 1.9
Granted | shares 0.6
Vested | shares (0.4)
Forfeited | shares 0.0
Ending balance | shares 2.1
Weighted-Average Fair Value  
Beginning balance (weighted average fair value) | $ / shares $ 29.32
Granted (weighted average fair value) | $ / shares 29.93
Vested (weighted average fair value) | $ / shares 26.04
Forfeited (weighted average fair value) | $ / shares 0.00
Ending balance (weighted average fair value) | $ / shares $ 30.09
v3.8.0.1
Stock-based Compensation - Schedule of Share-based Compensation, Performance Grants (Details) - Performance Shares [Member]
shares in Millions
3 Months Ended
Mar. 31, 2018
$ / shares
shares
Awards (millions)  
Beginning balance | shares 0.6
Granted | shares 0.3
Vested | shares 0.0
Forfeited | shares 0.0
Ending balance | shares 0.9
Weighted-Average Fair Value  
Beginning balance (weighted average fair value) | $ / shares $ 31.17
Granted (weighted average fair value) | $ / shares 33.77
Vested (weighted average fair value) | $ / shares 0.00
Forfeited (weighted average fair value) | $ / shares 0.00
Ending balance (weighted average fair value) | $ / shares $ 32.08
v3.8.0.1
Other Income, Net - Schedule of Other Non-operating Income (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Other Income and Expenses [Abstract]    
Foreign exchange gains, net $ 0.0 $ (1.2)
Other miscellaneous income, net (2.2) 0.0
Total $ (2.2) $ (1.2)
v3.8.0.1
Income Taxes (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
Effective income tax rate, percent 14.30% 13.10%  
Tax benefit on share-based compensation $ 2.4 $ 5.8  
Provisional income tax provision (benefit) $ 12.4   $ 107.8
v3.8.0.1
Net Income Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Earnings Per Share [Abstract]    
Net income attributable to controlling interests $ 69.9 $ 64.1
Basic weighted average shares outstanding (in shares) 240.9 239.8
Diluted weighted average shares outstanding (in shares) 245.8 246.1
Earnings per common share:    
Basic net income (loss) per share (dollars per share) $ 0.29 $ 0.27
Diluted net income (loss) per share (dollars per share) $ 0.28 $ 0.26
Antidilutive securities excluded from computation of earnings per share (in shares) 2.5 1.6
v3.8.0.1
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Receivables [Abstract]    
Accounts receivable—trade, net $ 824.0 $ 748.2
Notes receivable 24.5 29.4
Other 92.4 92.6
Total $ 940.9 $ 870.2
v3.8.0.1
Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Receivables [Abstract]      
Allowance for doubtful accounts $ 16.3   $ 15.9
Bad debt expense $ 0.2 $ 0.7  
v3.8.0.1
Inventories - Schedule of Inventory (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Inventory Disclosure [Abstract]      
Finished products $ 358.8   $ 347.5
Semi-finished products 101.2   95.5
Raw materials and supplies 181.8   165.6
Inventories $ 641.8 $ 585.9 $ 608.6
v3.8.0.1
Inventories - Additional Information (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Inventory Disclosure [Abstract]    
Stores and supplies inventories $ 22.7 $ 20.8
v3.8.0.1
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Property, Plant and Equipment [Abstract]    
Depreciation $ 46.4 $ 43.3
v3.8.0.1
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Abstract]    
Property, plant and equipment $ 2,270.3 $ 2,193.6
Accumulated depreciation (862.5) (805.0)
Property, plant and equipment, net $ 1,407.8 $ 1,388.6
v3.8.0.1
Borrowings - Schedule of Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Aug. 16, 2016
Debt Instrument [Line Items]      
Short-term and Other Borrowings $ 100.4 $ 94.8  
Unamortized original issue discount (8.8) (9.1)  
Unamortized deferred financing costs (37.5) (39.2)  
Total borrowings 3,961.3 3,915.6  
Short term borrowings 16.9 12.9  
Current portion of long-term borrowings 24.9 24.8  
Long-term borrowings 3,919.5 3,877.9  
2023 Dollar Term Loan [Member]      
Debt Instrument [Line Items]      
Term loan 1,955.0 1,960.0  
2023 Euro Term Loan [Member]      
Debt Instrument [Line Items]      
Term loan 486.1 472.5  
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 412.3 399.7  
2025 Euro Senior Notes [Member]      
Debt Instrument [Line Items]      
Senior Notes $ 553.8 $ 536.9  
v3.8.0.1
Borrowings - Senior Secured Credit Facilities (Details)
€ in Millions
3 Months Ended
May 31, 2017
Aug. 16, 2016
Aug. 01, 2016
Feb. 03, 2014
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jun. 01, 2017
USD ($)
Dec. 15, 2016
EUR (€)
Dec. 15, 2016
USD ($)
Jul. 31, 2016
Debt Instrument [Line Items]                    
Unamortized original issue discount         $ (8,800,000) $ (9,100,000)        
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     3.00   4.25          
First lien leverage ratio lower limit   5.50 2.50   3.50          
Line of credit facility, maximum borrowing capacity         $ 400,000,000.0          
Revolving Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Expiration period     5 years              
Accelerated period prior to expiration period     91 days              
Percent of credit facility outstanding for accelerated maturity     30.00%             25.00%
Percent not cash collateralized     103.00%              
Line of credit facility, maximum amount outstanding during period         0          
Letters of credit outstanding, amount         34,800,000 35,500,000        
Line of credit facility, remaining borrowing capacity         $ 365,200,000 $ 364,500,000        
Dollar Term Loan Due 2020 [Member]                    
Debt Instrument [Line Items]                    
Debt, long-term and short-term, combined amount                 $ 1,775,300,000  
2023 Dollar Term Loan [Member]                    
Debt Instrument [Line Items]                    
Debt, long-term and short-term, combined amount                 $ 1,545,000,000  
Debt instrument periodic payment principal percentage         1.00%          
2023 Dollar Term Loan [Member] | Interest Rate Floor [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate 0.75%                  
2023 Dollar Term Loan [Member] | Base Rate [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate 1.50%                  
2023 Dollar Term Loan [Member] | Eurocurrency Rate Loans [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate 2.50%                  
Euro Term Loan Due 2020 [Member]                    
Debt Instrument [Line Items]                    
Debt, long-term and short-term, combined amount | €               € 199.0    
2023 Euro Term Loan [Member]                    
Debt Instrument [Line Items]                    
Debt, long-term and short-term, combined amount | €               € 400.0    
2023 Euro Term Loan [Member] | Base Rate [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate 0.75%                  
2023 Euro Term Loan [Member] | Eurocurrency Rate Loans [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate 2.25%                  
2024 Dollar Term Loans [Member]                    
Debt Instrument [Line Items]                    
Debt, long-term and short-term, combined amount             $ 2,000,000,000      
Discount, percent of par             99.875%      
Unamortized original issue discount             $ (2,500,000)      
Debt instrument periodic payment principal percentage         1.00%          
2024 Dollar Term Loans [Member] | Base Rate [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate         1.00%          
2024 Dollar Term Loans [Member] | Eurocurrency Rate Loans [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate         2.00%          
2024 Dollar Term Loans [Member] | Eurocurrency Rate Loans [Member] | Interest Rate Floor [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate         0.00%          
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate   2.75%   3.50%            
Senior Secured Credit Facilities [Member] | Eurodollar [Member] | Revolving Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate   0.00%                
3.00:1.00 leverage ratio     2.50%              
2.50:1.00 leverage ratio     2.25%              
Senior Secured Credit Facility, Base Rate Loans [Member] | Revolving Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate     1.75% 2.50%            
3.00:1.00 leverage ratio     1.50%              
2.50:1.00 leverage ratio     1.25%              
Senior Secured Credit Facility, Base Rate Loans [Member] | Eurodollar [Member] | Revolving Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate   1.00%                
Senior Secured Credit Facility, Base Rate Loans [Member] | Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate     0.50%              
v3.8.0.1
Borrowings - Senior Notes (Details)
€ in Millions, $ in Millions
3 Months Ended
Aug. 16, 2016
EUR (€)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 27, 2016
EUR (€)
Aug. 16, 2016
USD ($)
Debt Instrument [Line Items]          
Unamortized original issue discount   $ 8.8 $ 9.1    
2024 Dollar Senior Notes [Member]          
Debt Instrument [Line Items]          
Percentage if change in control occurs 101.00%        
Debt Instrument, Redemption, Period One [Member] | 2024 Dollar Senior Notes [Member]          
Debt Instrument [Line Items]          
Debt instrument, redemption price, percentage   103.656%      
2024 Dollar Senior Notes [Member]          
Debt Instrument [Line Items]          
Debt instrument, face amount         $ 500.0
Debt instrument, interest rate, stated percentage 4.875%       4.875%
Discount, percent of par 99.951%       99.951%
Unamortized original issue discount         $ 2.0
Debt instrument, redemption price, percentage 104.875%        
Percent of principal required to be outstanding 50.00%        
2024 Dollar Senior Notes [Member] | Any Time Prior to August 15, 2019 [Member]          
Debt Instrument [Line Items]          
Percentage of principal amount redeemed 40.00%        
2024 Euro Senior Notes [Member]          
Debt Instrument [Line Items]          
Debt instrument, face amount | € € 335.0        
Debt instrument, interest rate, stated percentage 4.25%       4.25%
Debt instrument, redemption price, percentage 104.25%        
Percent of principal required to be outstanding 50.00%        
Percentage if change in control occurs 101.00%        
2024 Euro Senior Notes [Member] | Any Time Prior to August 15, 2019 [Member]          
Debt Instrument [Line Items]          
Percentage of principal amount redeemed 40.00%        
2025 Euro Senior Notes [Member]          
Debt Instrument [Line Items]          
Debt instrument, face amount | €       € 450.0  
Debt instrument, interest rate, stated percentage       3.75%  
Debt instrument, redemption price, percentage   103.75%      
Percent of principal required to be outstanding   50.00%      
Percentage if change in control occurs   101.00%      
2025 Euro Senior Notes [Member] | Any Time Prior to January 15, 2020 [Member]          
Debt Instrument [Line Items]          
Percentage of principal amount redeemed   40.00%      
v3.8.0.1
Borrowings - Debt Instrument Redemption (Details)
3 Months Ended
Mar. 31, 2018
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%
v3.8.0.1
Borrowings - Schedule of Maturities of Long-term Debt (Details)
$ in Millions
Mar. 31, 2018
USD ($)
Debt Instrument [Line Items]  
Remainder of 2018 $ 37.1
2019 26.8
2020 25.8
2021 25.9
2022 52.6
Thereafter 3,823.7
Long-term debt 3,991.9
Build-to-suit Lease and Sale-leaseback Financing [Member]  
Debt Instrument [Line Items]  
Built-to-suit arrangement debt $ 15.7
v3.8.0.1
Fair Value Accounting (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2017
Mar. 31, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale securities   $ 4.3 $ 4.3
Contingent consideration fair value   8.9 8.9
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   501.9 524.4
2024 Euro Senior Notes [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term debt, fair value   436.0 427.7
2025 Euro Senior Notes [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term debt, fair value   579.4 571.8
2024 Dollar Term Loans [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term debt, fair value   1,967.2 1,967.4
2023 Euro Term Loan [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term debt, fair value   $ 486.1 $ 475.5
v3.8.0.1
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Designated as Hedging Instrument [Member]    
Derivatives, Fair Value [Line Items]    
Derivative asset $ 7.4 $ 1.2
Derivative liability 0.0 2.6
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Prepaid Expenses and Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative asset 1.7 0.0
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Other Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative asset 5.7 1.2
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Accrued Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative liability 0.0 2.6
Not Designated as Hedging Instrument [Member]    
Derivatives, Fair Value [Line Items]    
Derivative asset 0.1 0.0
Derivative liability 0.3 0.7
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Prepaid Expenses and Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative asset 0.0  
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Prepaid Expenses and Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative asset 0.1 0.0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative liability $ 0.3 $ 0.7
v3.8.0.1
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
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Net Amount of (Gain) Loss Recognized in OCI on Derivatives $ (8.0) $ (0.6)
Interest Expense [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of (Gain) Loss Reclassified from AOCI to Income $ 0.1 $ 2.1
v3.8.0.1
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Interest Expense [Member] | Interest Rate Cap [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
(Gain) loss on non-derivative instruments, net $ 0.0 $ 0.3
Other Nonoperating Income (Expense) [Member] | Foreign Exchange Contract [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
(Gain) loss on non-derivative instruments, net $ 1.4 $ 0.1
v3.8.0.1
Derivative Financial Instruments - Additional Information (Details)
€ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Dec. 31, 2017
EUR (€)
Dec. 31, 2017
USD ($)
2024 Dollar Term Loans [Member]      
Derivatives, Fair Value [Line Items]      
Number Of Interest Rate Caps   4 4
Derivative, cap interest rate   1.50% 1.50%
Derivative, notional amount     $ 850,000,000
2023 Euro Term Loan [Member]      
Derivatives, Fair Value [Line Items]      
Derivative, cap interest rate   1.25% 1.25%
Derivative, maturity date Dec. 31, 2019    
Derivative instrument, premium     $ 600,000
2023 Euro Term Loan [Member]      
Derivatives, Fair Value [Line Items]      
Derivative, notional amount | €   € 388.0  
December 31, 2019 [Member] | Interest Rate Cap [Member]      
Derivatives, Fair Value [Line Items]      
Derivative, notional amount     600,000,000
Derivative Instrument, Deferred Premium     8,600,000
December 31, 2021 [Member] | Interest Rate Cap [Member]      
Derivatives, Fair Value [Line Items]      
Derivative, notional amount     250,000,000
Derivative Instrument, Deferred Premium     8,100,000
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member]      
Derivatives, Fair Value [Line Items]      
Derivative asset $ 100,000   $ 0
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | Interest Rate Cap [Member]      
Derivatives, Fair Value [Line Items]      
Derivative asset $ 0    
v3.8.0.1
Segments - Reconciliation of Revenue from Segments to Consolidated (Details)
$ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Segment
Mar. 31, 2017
USD ($)
Segment Reporting, Revenue Reconciling Item [Line Items]    
Number of operating segments | Segment 2  
Net sales $ 1,165.8 $ 1,007.8
Performance Coatings [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales 728.7 586.4
Performance Coatings [Member] | Refinish [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales 412.6 388.6
Performance Coatings [Member] | Industrial [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales 316.1 197.8
Transportation Coatings [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales 437.1 421.4
Transportation Coatings [Member] | Light Vehicle [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales 349.5 340.0
Transportation Coatings [Member] | Commercial Vehicle [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales $ 87.6 $ 81.4
v3.8.0.1
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Segment Reporting Information [Line Items]    
Net sales $ 1,165.8 $ 1,007.8
Equity in earnings in unconsolidated affiliates 0.0 0.2
Adjusted EBITDA 220.0 203.1
Investment in unconsolidated affiliates 16.0 14.2
Performance Coatings [Member]    
Segment Reporting Information [Line Items]    
Net sales 728.7 586.4
Equity in earnings in unconsolidated affiliates 0.1 0.1
Adjusted EBITDA 143.2 116.9
Investment in unconsolidated affiliates 3.3 2.9
Transportation Coatings [Member]    
Segment Reporting Information [Line Items]    
Net sales 437.1 421.4
Equity in earnings in unconsolidated affiliates (0.1) 0.1
Adjusted EBITDA 76.8 86.2
Investment in unconsolidated affiliates $ 12.7 $ 11.3
v3.8.0.1
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Segment Reporting [Abstract]    
Income before income taxes $ 82.8 $ 75.8
Interest expense, net 39.4 35.8
Depreciation and amortization 91.9 82.4
EBITDA 214.1 194.0
Foreign exchange remeasurement gains (a) 0.0 (1.2)
Long-term employee benefit plan adjustments (b) (0.5) 0.4
Termination benefits and other employee related costs (c) (1.3) 0.8
Consulting and advisory fees (d) 0.0 (0.1)
Transition-related costs (e) (0.2) 0.0
Offering and transactional costs (f) 0.2 (1.0)
Stock-based compensation (g) 8.4 10.4
Other adjustments (h) 0.3 0.2
Dividends in respect of noncontrolling interest (i) (1.0) (0.4)
Adjusted EBITDA $ 220.0 $ 203.1
v3.8.0.1
Shareholders' Equity (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Total stockholders’ equity, beginning balance $ 1,407.8 $ 1,246.6  
Cumulative effect of an accounting change     $ 12.2
Stockholders' equity, adjusted balance     1,420.0
Net income 71.0 65.9  
Other comprehensive income, net of tax 50.0 41.5  
Recognition of stock-based compensation 8.4 10.4  
Exercise of stock options 6.2 8.8  
Treasury stock repurchase (3.3)    
Noncontrolling interests of acquired subsidiaries (26.9)    
Dividends paid to noncontrolling interests (1.0) (0.4)  
Total stockholders’ equity, ending balance 1,524.4 1,372.8  
Parent [Member]      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Total stockholders’ equity, beginning balance 1,276.1 1,125.1  
Cumulative effect of an accounting change     12.1
Stockholders' equity, adjusted balance     1,288.2
Net income 69.9 64.1  
Other comprehensive income, net of tax 49.1 40.6  
Recognition of stock-based compensation 8.4 10.4  
Exercise of stock options 6.2 8.8  
Treasury stock repurchase (3.3)    
Noncontrolling interests of acquired subsidiaries 2.9    
Dividends paid to noncontrolling interests 0.0 0.0  
Total stockholders’ equity, ending balance 1,421.4 1,249.0  
Noncontrolling Interest [Member]      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Total stockholders’ equity, beginning balance 131.7 121.5  
Cumulative effect of an accounting change     0.1
Stockholders' equity, adjusted balance     $ 131.8
Net income 1.1 1.8  
Other comprehensive income, net of tax 0.9 0.9  
Recognition of stock-based compensation 0.0 0.0  
Exercise of stock options 0.0 0.0  
Treasury stock repurchase 0.0    
Noncontrolling interests of acquired subsidiaries (29.8)    
Dividends paid to noncontrolling interests (1.0) (0.4)  
Total stockholders’ equity, ending balance $ 103.0 $ 123.8  
v3.8.0.1
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Total stockholders’ equity, beginning balance $ 1,407.8 $ 1,246.6  
Cumulative effect of an accounting change     $ 12.2
Stockholders' equity, adjusted balance     1,420.0
Total stockholders’ equity, ending balance 1,524.4 1,372.8  
Unrealized Currency Translation Adjustments      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Total stockholders’ equity, beginning balance (208.8) (292.2)  
Cumulative effect of an accounting change     0.0
Stockholders' equity, adjusted balance     (208.8)
Current year deferrals to AOCI 42.2 39.7  
Reclassifications from AOCI to Net income 0.0 0.0  
Net Change 42.2 39.7  
Total stockholders’ equity, ending balance (166.6) (252.5)  
Unrealized Pension Adjustments      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Total stockholders’ equity, beginning balance (31.4) (56.6)  
Cumulative effect of an accounting change     0.0
Stockholders' equity, adjusted balance     (31.4)
Current year deferrals to AOCI 0.0 0.0  
Reclassifications from AOCI to Net income 0.6 0.6  
Net Change 0.6 0.6  
Total stockholders’ equity, ending balance (30.8) (56.0)  
Unrealized Gain on Securities      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Total stockholders’ equity, beginning balance 0.8 0.4  
Cumulative effect of an accounting change     (0.8)
Stockholders' equity, adjusted balance     0.0
Current year deferrals to AOCI 0.0 0.0  
Reclassifications from AOCI to Net income 0.0 0.0  
Net Change 0.0 0.0  
Total stockholders’ equity, ending balance 0.0 0.4  
Unrealized Gain (Loss) on Derivatives      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Total stockholders’ equity, beginning balance (1.6) (2.0)  
Cumulative effect of an accounting change     0.0
Stockholders' equity, adjusted balance     (1.6)
Current year deferrals to AOCI 6.4 (0.8)  
Reclassifications from AOCI to Net income (0.1) 1.1  
Net Change 6.3 0.3  
Total stockholders’ equity, ending balance 4.7 (1.7)  
Accumulated Other Comprehensive Income (Loss)      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Total stockholders’ equity, beginning balance (241.0) (350.4)  
Cumulative effect of an accounting change     (0.8)
Stockholders' equity, adjusted balance     $ (241.8)
Current year deferrals to AOCI 48.6 38.9  
Reclassifications from AOCI to Net income 0.5 1.7  
Net Change 49.1 40.6  
Total stockholders’ equity, ending balance $ (192.7) $ (309.8)  
v3.8.0.1
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Equity [Abstract]    
Pension tax benefit (expense) $ 0.3 $ 0.1
Cumulative pension tax benefit 13.3 19.2
Derivatives tax expense (benefit) 1.6 0.3
Cumulative derivative tax expense (benefit) $ 1.0 $ (0.8)
v3.8.0.1
Venezuela (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Intercompany Foreign Currency Balance [Line Items]    
Net sales $ 1,165.8 $ 1,007.8
Subsidiaries [Member]    
Intercompany Foreign Currency Balance [Line Items]    
Cost investment $ 0.0  
Net sales   $ 1.9
v3.8.0.1
Subsequent Events (Details)
€ in Millions, $ in Millions
Apr. 11, 2018
EUR (€)
Jun. 01, 2017
USD ($)
2024 Dollar Term Loans [Member]    
Subsequent Event [Line Items]    
Debt, long-term and short-term, combined amount | $   $ 2,000.0
Subsequent Event [Member] | 2024 Dollar Term Loans [Member]    
Subsequent Event [Line Items]    
Increase to debt amount € 475.0  
Debt, long-term and short-term, combined amount € 2,430.0  
Subsequent Event [Member] | Euro Fixed-rate Debt Maturing in 2023 [Member]    
Subsequent Event [Line Items]    
Debt instrument, interest rate, stated percentage 1.95%