AXALTA COATING SYSTEMS LTD., 10-K filed on 2/28/2017
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Feb. 23, 2017
Jun. 30, 2016
Document And Entity Information [Abstract]
 
 
 
Entity Registrant Name
Axalta Coating Systems Ltd. 
 
 
Trading Symbol
AXTA 
 
 
Entity Central Index Key
0001616862 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2016 
 
 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)
FY 
 
 
Amendment Flag
false 
 
 
Entity Common Stock, Shares Outstanding
 
241,340,450 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 5.2 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Statement [Abstract]
 
 
 
Net sales
$ 4,073.5 
$ 4,087.2 
$ 4,361.7 
Other revenue
23.9 
26.1 
29.8 
Total revenue
4,097.4 
4,113.3 
4,391.5 
Cost of goods sold
2,527.6 
2,597.3 
2,897.2 
Selling, general and administrative expenses
962.5 
914.8 
991.5 
Venezuela asset impairment
57.9 
0 
0 
Research and development expenses
57.7 
51.6 
49.5 
Amortization of acquired intangibles
83.4 
80.7 
83.8 
Income from operations
408.3 
468.9 
369.5 
Interest expense, net
178.2 
196.5 
217.7 
Other expense, net
142.7 
111.2 
115.0 
Income before income taxes
87.4 
161.2 
36.8 
Provision for income taxes
39.8 
63.3 
2.1 
Net income
47.6 
97.9 
34.7 
Less: Net income attributable to noncontrolling interests
5.8 
4.2 
7.3 
Net income attributable to controlling interests
$ 41.8 
$ 93.7 
$ 27.4 
Basic net income per share (in dollars per share)
$ 0.18 
$ 0.40 
$ 0.12 
Diluted net income per share (in dollars per share)
$ 0.17 
$ 0.39 
$ 0.12 
Basic weighted average shares outstanding (in dollars per share)
238.1 
233.8 
229.3 
Diluted weighted average shares outstanding (in dollars per share)
244.4 
239.7 
230.3 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
Net income
$ 47.6 
$ 97.9 
$ 34.7 
Other comprehensive income (loss), before tax:
 
 
 
Foreign currency translation adjustments
(59.5)
(164.3)
(101.1)
Unrealized gain on securities
0.3 
0.3 
0.7 
Unrealized gain (loss) on derivatives
2.0 
(5.5)
(4.6)
Unrealized loss on pension and other benefit plan obligations
(28.9)
(2.2)
(55.6)
Other comprehensive loss, before tax
(86.1)
(171.7)
(160.6)
Income tax benefit related to items of other comprehensive income
4.9 
2.1 
18.6 
Other comprehensive loss, net of tax
(81.2)
(169.6)
(142.0)
Comprehensive loss
(33.6)
(71.7)
(107.3)
Less: Comprehensive income attributable to noncontrolling interests
5.7 
0.6 
2.6 
Comprehensive loss attributable to controlling interests
$ (39.3)
$ (72.3)
$ (109.9)
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 535.4 
$ 485.0 
Restricted cash
2.7 
2.7 
Accounts and notes receivable, net
801.9 
765.8 
Inventories
529.7 
530.7 
Prepaid expenses and other
50.3 
63.6 
Total current assets
1,920.0 
1,847.8 
Property, plant and equipment, net
1,315.7 
1,382.9 
Goodwill
961.0 
928.2 
Identifiable intangibles, net
1,130.3 
1,191.6 
Other assets
527.8 
479.6 
Total assets
5,854.8 
5,830.1 
Current liabilities:
 
 
Accounts payable
474.2 
454.7 
Current portion of borrowings
27.9 
50.1 
Other accrued liabilities
417.6 
370.2 
Total current liabilities
919.7 
875.0 
Long-term borrowings
3,236.0 
3,391.4 
Accrued pensions and other long-term employee benefits
249.1 
252.3 
Deferred income taxes
160.2 
148.0 
Other liabilities
32.2 
22.2 
Total liabilities
4,597.2 
4,688.9 
Commitments and contingent liabilities (Note 8)
   
   
Shareholders’ equity
 
 
Common shares, $1.00 par, 1,000.0 shares authorized, 240.5 and 237.9 shares issued and outstanding at December 31, 2016 and 2015, respectively
239.3 
237.0 
Capital in excess of par
1,294.3 
1,238.8 
Accumulated deficit
(47.1)
(132.8)
Accumulated other comprehensive loss
(350.4)
(269.3)
Total Axalta shareholders’ equity
1,136.1 
1,073.7 
Noncontrolling interests
121.5 
67.5 
Total shareholders’ equity
1,257.6 
1,141.2 
Total liabilities and shareholders’ equity
$ 5,854.8 
$ 5,830.1 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Common stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
Common shares, shares authorized
1,000.0 
1,000.0 
Common shares, shares issued
240.5 
237.9 
Common shares, shares outstanding
240.5 
237.9 
Consolidated Statement of Changes in Stockholders Equity (USD $)
In Millions, unless otherwise specified
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income
Noncontrolling Interest [Member]
Total stockholders’ equity, beginning balance at Dec. 31, 2013
$ 1,211.8 
$ 229.1 
$ 1,133.7 
$ (253.9)
$ 34.0 
$ 68.9 
Comprehensive Income (Loss)
 
 
 
 
 
 
Net income
34.7 
 
 
27.4 
 
7.3 
Net unrealized gain (loss) on securities, net of tax
0.7 
 
 
 
0.7 
 
Net realized and unrealized gain (loss) on derivatives, net of tax
(2.9)
 
 
 
(2.9)
 
Long-term employee benefit plans, net of tax
(38.7)
 
 
 
(38.7)
 
Foreign currency translation, net of tax of $0.0 million
(101.1)
 
 
 
(96.4)
(4.7)
Comprehensive loss
(107.3)
 
 
27.4 
(137.3)
2.6 
Equity contributions
2.5 
0.3 
2.2 
 
 
 
Recognition of stock-based compensation
8.0 
 
8.0 
 
 
 
Exercises of stock options and associated tax benefits
3.0 
0.4 
2.6 
 
 
 
Noncontrolling interests of acquired subsidiaries
(3.8)
 
(1.8)
 
 
(2.0)
Dividends declared to noncontrolling interests
(2.2)
 
 
 
 
(2.2)
Total stockholders’ equity, ending balance at Dec. 31, 2014
1,112.0 
229.8 
1,144.7 
(226.5)
(103.3)
67.3 
Comprehensive Income (Loss)
 
 
 
 
 
 
Net income
97.9 
 
 
93.7 
 
4.2 
Net unrealized gain (loss) on securities, net of tax
0.3 
 
 
 
0.3 
 
Net realized and unrealized gain (loss) on derivatives, net of tax
(3.4)
 
 
 
(3.4)
 
Long-term employee benefit plans, net of tax
(2.2)
 
 
 
(2.2)
 
Foreign currency translation, net of tax of $0.0 million
(164.3)
 
 
 
(160.7)
(3.6)
Comprehensive loss
(71.7)
 
 
93.7 
(166.0)
0.6 
Cumulative effect of an accounting change (Note 4)
43.9 
 
 
43.9 
 
 
Recognition of stock-based compensation
30.2 
 
30.2 
 
 
 
Exercises of stock options and associated tax benefits
71.1 
7.2 
63.9 
 
 
 
Noncontrolling interests of acquired subsidiaries
4.3 
 
 
 
 
4.3 
Dividends declared to noncontrolling interests
(4.7)
 
 
 
 
(4.7)
Total stockholders’ equity, ending balance at Dec. 31, 2015
1,141.2 
237.0 
1,238.8 
(132.8)
(269.3)
67.5 
Comprehensive Income (Loss)
 
 
 
 
 
 
Net income
47.6 
 
 
41.8 
 
5.8 
Net unrealized gain (loss) on securities, net of tax
0.3 
 
 
 
0.3 
 
Net realized and unrealized gain (loss) on derivatives, net of tax
1.2 
 
 
 
1.2 
 
Long-term employee benefit plans, net of tax
(23.2)
 
 
 
(23.2)
 
Foreign currency translation, net of tax of $0.0 million
(59.5)
 
 
 
(59.4)
(0.1)
Comprehensive loss
(33.6)
 
 
41.8 
(81.1)
5.7 
Recognition of stock-based compensation
41.1 
 
41.1 
 
 
 
Exercises of stock options and associated tax benefits
16.7 
2.3 
14.4 
 
 
 
Noncontrolling interests of acquired subsidiaries
51.3 
 
 
 
 
51.3 
Dividends declared to noncontrolling interests
(3.0)
 
 
 
 
(3.0)
Total stockholders’ equity, ending balance at Dec. 31, 2016
$ 1,257.6 
$ 239.3 
$ 1,294.3 
$ (47.1)
$ (350.4)
$ 121.5 
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
 
 
 
Available for sale securities, tax
$ 0 
$ 0 
$ 0 
Derivatives qualifying as hedges, tax
0.8 
2.1 
1.7 
Pension, tax
5.7 
0 
16.9 
Foreign currency translation adjustment, tax
$ 0 
$ 0 
$ 0 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Operating activities:
 
 
 
Net income
$ 47.6 
$ 97.9 
$ 34.7 
Adjustment to reconcile net income to cash provided by operating activities:
 
 
 
Depreciation and amortization
322.1 
307.7 
308.7 
Amortization of financing costs and original issue discount
17.8 
20.6 
21.0 
Debt extinguishment and refinancing related costs
97.6 
2.5 
6.1 
Deferred income taxes
(14.2)
(5.0)
(38.2)
Realized and unrealized foreign exchange losses, net
35.5 
93.7 
75.1 
Stock-based compensation
41.1 
30.2 
8.0 
Asset impairments
68.4 
30.6 
0 
Other non-cash, net
(1.9)
12.5 
(25.3)
Changes in operating assets and liabilities:
 
 
 
Trade accounts and notes receivable
(67.8)
(61.1)
(40.2)
Inventories
(1.7)
(35.2)
(24.7)
Prepaid expenses and other
(64.5)
(65.6)
(54.1)
Accounts payable
32.3 
(6.7)
53.6 
Other accrued liabilities
54.0 
10.1 
(54.8)
Other liabilities
(7.0)
(22.4)
(18.5)
Cash provided by operating activities
559.3 
409.8 
251.4 
Investing activities:
 
 
 
Business acquisitions (net of cash acquired)
(114.8)
(29.6)
0 
Purchase of property, plant and equipment
(136.2)
(138.1)
(188.4)
Proceeds from sale of a business
0 
0 
17.5 
Other investing activities
(6.0)
1.5 
(2.9)
Cash used for investing activities
(257.0)
(166.2)
(173.8)
Financing activities:
 
 
 
Proceeds from short-term borrowings
0.2 
2.0 
30.7 
Proceeds from long-term borrowings
1,604.3 
0 
0.7 
Payments on short-term borrowings
(8.6)
(16.9)
(33.8)
Payments on long-term borrowings
(1,755.7)
(127.3)
(121.1)
Refinancing related costs
(86.3)
0 
(3.0)
Dividends paid to noncontrolling interests
(3.0)
(4.7)
(2.2)
Proceeds from option exercises
16.7 
62.4 
3.0 
Other financing activities
(0.2)
(0.2)
2.5 
Cash used for financing activities
(232.6)
(84.7)
(123.2)
Increase (decrease) in cash and cash equivalents
69.7 
158.9 
(45.6)
Effect of exchange rate changes on cash
(19.3)
(58.0)
(26.9)
Cash at beginning of period
487.7 
386.8 
459.3 
Cash at end of period
538.1 
487.7 
386.8 
Cash and cash equivalents
535.4 
485.0 
382.1 
Restricted cash
2.7 
2.7 
4.7 
Cash paid during the year for:
 
 
 
Interest, net of amounts capitalized
169.4 
172.5 
192.0 
Income taxes, net of refunds
39.2 
52.4 
57.0 
Non-cash investing activities:
 
 
 
Accrued capital expenditures
$ 28.7 
$ 33.8 
$ 29.4 
General and Description of the Business
General and Description of the Business
GENERAL AND DESCRIPTION OF THE BUSINESS
Axalta Coating Systems Ltd. ("Axalta," the "Company," "we," "our" and "us"), a Bermuda exempted company limited by shares formed at the direction of The Carlyle Group L.P. ("Carlyle"), was incorporated on August 24, 2012 for the purpose of consummating the acquisition of DuPont Performance Coatings ("DPC"), a business formerly owned by E. I. du Pont de Nemours and Company ("DuPont"), including certain assets of DPC and all of the capital stock and other equity interests of certain entities engaged in the DPC business (the "Acquisition"). Axalta, through its wholly-owned indirect subsidiaries, acquired DPC on February 1, 2013.
Axalta is a holding company with no business operations or assets other than primarily cash and cash equivalents and 100% of the ownership interest of Axalta Coating Systems Luxembourg Top S.à r.l. (formerly Axalta Coating Systems Dutch Co. Top Coöperatief U.A.), which itself is a holding company with no operations or assets other than 100% of the capital stock of Axalta Coating Systems Dutch Holdings A B.V. ("Dutch A B.V."), which itself is a holding company with no operations or assets other than 100% of the capital stock of Axalta Coating Systems Dutch Holdings B B.V. ("Dutch B B.V."). Dutch B B.V., together with its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings, Inc. ("Axalta US Holdings"), are co-borrowers under the Senior Secured Credit Facilities and the Revolving Credit Facility (each as defined below). Dutch B B.V., is also an issuer of and a guarantor of the New Senior Notes and Axalta Coating Systems, LLC is an issuer of the 2024 Senior Notes. Our global operations are conducted by indirect wholly-owned subsidiaries and indirect majority-owned subsidiaries.
We are a leading global manufacturer, marketer and distributor of high performance coatings products primarily serving the transportation industry. We have an approximately 150-year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technology and customer service.
The Carlyle Offerings
In November 2014, we priced our initial public offering ("IPO") in which certain selling shareholders affiliated with Carlyle sold 57,500,000 common shares at a price of $19.50 per share.
Subsequent to the IPO, Carlyle completed six secondary offerings for an aggregate of 170.3 million common shares from April 2015 through August 2016 with offering prices ranging from $27.93 to $29.75 ("Carlyle Offerings"). We did not receive any proceeds from the sale of common shares in any of the Carlyle Offerings.
Effective with the August 2016 Carlyle Offering, Carlyle no longer has any beneficial interest in Axalta's common shares, other than de minimis amounts held or owned in the ordinary course of business purchased subsequent to the Acquisition.
Basis of Presentation of the Consolidated and Combined Financial Statements
Basis of Presentation of the Consolidated and Combined Financial Statements
BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated balance sheets of Axalta at December 31, 2016 and 2015 and the related consolidated statements of operations, consolidated statements of comprehensive income (loss), consolidated statements of cash flows and consolidated statements of changes in shareholders' equity for the years ended December 31, 2016, 2015 and 2014 included herein are audited. 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. All intercompany balances and transactions have been eliminated. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included herein the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.
The annual audited 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.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of Axalta and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. The estimates and assumptions include, but are not limited to, receivable and inventory valuations, fixed asset valuations, valuations of goodwill and identifiable intangible assets, including analysis of impairment, valuations of long-term employee benefit obligations, income taxes, environmental matters, litigation, stock-based compensation, restructuring, and allocations of costs. Our estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. Actual results could differ materially from those estimates.
Accounting for Business Combinations
We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets, including separately identifiable intangible assets and assumed liabilities at their acquisition date fair values. The method records any excess purchase price over the fair value of acquired net assets as goodwill. Included in the determination of the purchase price is the fair value of contingent consideration, if applicable, based on the terms and applicable targets described within the acquisition agreements (e.g., projected revenues or EBITDA). Subsequent to the acquisition date, the fair value of the liability, if determined to be payable in cash, is revalued at each balance sheet date with adjustments recorded within earnings.
The determination of the fair value of assets acquired, liabilities assumed, and noncontrolling interests involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the closing date of the acquisition. When necessary, we consult with external advisors to help determine fair value. For non-observable market values determined using Level 3 assumptions, we determine fair value using acceptable valuation principles (e.g., multiple excess earnings, relief from royalty and cost methods).
We included the results of operations from the acquisition date in the financial statements for all businesses acquired.
Principles of Consolidation
The consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which Axalta, directly or indirectly, owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, Axalta’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statements of operations and our share of these companies’ stockholders’ equity is included in the accompanying consolidated balance sheet.
We eliminated all intercompany accounts and transactions in the preparation of the accompanying consolidated financial statements.
Revenue Recognition
We recognize revenue after completing the earnings process. We recognize revenue for product sales when we ship products to the customer in accordance with the terms of the agreement, when there is persuasive evidence of the arrangement, title and risk of loss have been transferred, collectability is reasonably assured and pricing is fixed or determinable.
For a majority of our product sales, title transfers at the shipping point and delivery is considered complete. For certain OEM customers, revenue is recognized at the time the customer applies our coatings to its vehicles, as this represents the point in time that risk of loss has been transferred and delivery is considered complete.
We accrue for sales returns and other allowances based on our historical experience.
We incur up-front costs in order to obtain contracts with certain customers, referred to as Business Incentive Plan assets ("BIPs"). We capitalized these up-front costs as a component of other assets and amortize the related amounts over the estimated life of the contract 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.  As of December 31, 2016 and 2015, $170.8 million and $147.3 million, respectively, were deferred within other assets on the consolidated balance sheets. For the years ended December 31, 2016, 2015 and 2014, $53.5 million, $50.6 million and $43.0 million, respectively, were recorded as reductions of net sales in the consolidated statement of operations.
We include the amounts billed to customers for shipping and handling fees in net sales and costs incurred for the delivery of goods as cost of goods sold in the statement of operations.
Recognition for licensing and royalty income occurs in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured.
Cash and Cash Equivalents
Cash equivalents represent highly liquid investments considered readily convertible to known amounts of cash within three months or less from time of purchase. They are carried at cost plus accrued interest, which approximates fair value because of the short-term maturity of these instruments. Cash balances may exceed government insured limits in certain jurisdictions.
Fair Value Measurements
GAAP defines a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
The following valuation techniques are used to measure fair value for assets and liabilities:
Level 1—Quoted market prices in active markets for identical assets or liabilities;
Level 2—Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and
Level 3—Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability.
Derivatives and Hedging
The Company from time to time utilizes derivatives to manage exposures to currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or accumulated other comprehensive income ("AOCI"), depending on the use of the derivative and whether it qualifies for hedge accounting treatment and is designated as such.
Gains and losses on derivatives that qualify and are designated as cash flow hedging instruments are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income.
Gains and losses on derivatives qualifying and designated as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income.
Cash flows from derivatives are recognized in the consolidated statements of cash flows in a manner consistent with the underlying transactions.
Receivables and Allowance for Doubtful Accounts
Receivables are recognized net of an allowance for doubtful accounts receivable. The allowance for doubtful accounts receivable reflects the best estimate of losses inherent in the accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written down or off when a portion or all of such account receivable is determined to be uncollectible.
Inventories
Inventories are valued at the lower of cost or net realizable value with cost being determined on the weighted average cost method. Elements of cost in inventories include:
•
raw materials,
•
direct labor, and
•
manufacturing and indirect overhead.
Stores and supplies are valued at the lower of cost or net realizable value; cost is generally determined by the weighted average cost method. Inventories deemed to have costs greater than their respective market values are reduced to net realizable value with a loss recorded in income in the period recognized.
Property, Plant and Equipment
Property, plant and equipment acquired in an acquisition are recorded at fair value as of the acquisition date and are depreciated over the estimated useful life using the straight-line method. Subsequent additions to property, plant and equipment, including the fair value of any asset retirement obligations upon initial recognition of the liability, are recorded at cost and are depreciated over the estimated useful life using the straight-line method. See Note 17 for a range of estimated useful lives used for each property, plant and equipment class.
Software included in property, plant and equipment represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance and training costs are expensed in the period in which they are incurred.
Goodwill and Other Identifiable Intangible Assets
Goodwill represents the excess of purchase price over the fair values of underlying net assets acquired in an acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis as of October 1; however, these tests are performed more frequently if events or changes in circumstances indicate that the asset may be impaired. The fair value methodology is based on prices of similar assets or other valuation methodologies including discounted cash flow techniques.
When testing goodwill and indefinite-lived intangible assets for impairment, we first have an option to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that an impairment exists. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. In the event the qualitative assessment indicates that an impairment is more likely than not, we would be required to perform a quantitative impairment test, otherwise no further analysis is required.
Under the quantitative goodwill impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, then individual assets (including identifiable intangible assets) and liabilities of the reporting unit are estimated at fair value. The excess of the estimated fair value of the reporting unit over the estimated fair value of its net assets would establish the implied value of goodwill. The excess of the recorded amount of goodwill over the implied value is then charged to earnings as an impairment loss.
Definite-lived intangible assets, such as technology, trademarks, customer relationships and non-compete agreements are amortized over their estimated useful lives, generally for periods ranging from two to 20 years. The reasonableness of the useful lives of these assets is regularly evaluated. Once these assets are fully amortized, they are removed from the balance sheet. We evaluate these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable.
Impairment of Long-Lived Assets
The carrying value of long-lived assets to be held and used is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the asset are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The fair value methodology used is an estimate of fair market value and is based on prices of similar assets or other valuation methodologies including present value techniques. Long-lived assets to be disposed of other than by sale are classified as held for use until their disposal. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived assets classified as held for sale.
Research and Development
Research and development costs incurred in the normal course of business consist primarily of employee-related costs and are expensed as incurred. In process research and development projects acquired in a business combination are recorded as intangible assets at their fair value as of the acquisition date, using Level 3 assumptions. Subsequent costs related to acquired in process research and development projects are expensed as incurred. Research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. These indefinite-lived intangible assets are tested for impairment consistent with the impairment testing performed on other indefinite-lived intangible assets discussed above. Upon completion of the research and development process, the carrying value of acquired in process research and development projects is reclassified as a finite-lived asset and is amortized over its useful life.
Environmental Liabilities and Expenditures
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued environmental liabilities are not discounted. Claims for recovery from third parties, if any, are reflected separately as an asset. We record recoveries at the earlier of when the gain is probable and reasonably estimable, or realized. For the years ending December 31, 2016, 2015 and 2014, we have not recognized income associated with recoveries from third parties.
Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized and depreciated.
Litigation
We accrue for liabilities related to litigation matters when available information indicates that the liability is probable and the amount can be reasonably estimated. Legal costs such as outside counsel fees and expenses are charged to expense in the period incurred.
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for operating losses, interest and tax credit carry forwards. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income in the period that includes the enactment date.
Where we do not intend to indefinitely reinvest earnings of our subsidiaries, we provide for income taxes and withholding taxes, where applicable, on unremitted earnings. We do not provide for income taxes on unremitted earnings of our subsidiaries that are intended to be indefinitely reinvested.
We recognize the benefit of an income tax position only if it is "more likely than not" that the tax position will be sustained. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized. Additionally, we recognize interest and penalties accrued related to unrecognized tax benefits as a component of provision for income taxes. The current portion of unrecognized tax benefits is included in "Income taxes payable" and the long-term portion is included in the long-term income tax payable in the accompanying consolidated balance sheets.
Foreign Currency Translation
The reporting currency is the U.S. dollar. In most cases, our non-U.S. based subsidiaries use their local currency as the functional currency for their respective business operations. Assets and liabilities of these operations are translated into U.S. dollars at end-of-period exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Resulting cumulative translation adjustments are recorded as a component of shareholders’ equity in the accompanying consolidated balance sheet in Accumulated other comprehensive income (loss).
Gains and losses from transactions denominated in currencies other than the functional currencies are included in the consolidated statement of operations in other expense, net.
Employee Benefits
Defined benefit plans specify an amount of pension benefit that an employee will receive upon retirement, usually dependent on factors such as age, years of service and compensation. The net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of the future benefits that employees have earned in return for their service in the current and prior periods. These benefits are then discounted to determine the present value of the obligations and are then adjusted for the impact of any unamortized prior service costs. The discount rate used is based upon market indicators in the region (generally, the yield on bonds that are denominated in the currency in which the benefits will be paid) and that have maturity dates approximating the terms of the obligations. The calculations are performed by qualified actuaries using the projected unit credit method.
Stock-Based Compensation
Our stock-based compensation is comprised of Axalta stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units and are measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a graded-vesting attribution basis over the requisite service period. Compensation expense is recorded net of forfeitures, which we elect to record in the period they occur.
Earnings per Common Share
Basic earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities; anti-dilutive securities are excluded from the calculation. These potentially dilutive securities are calculated under the treasury stock method and consist of stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units.
Recent Accounting Guidance
Recent Accounting Guidance
RECENT ACCOUNTING GUIDANCE
Accounting Guidance Issued and Adopted
In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows: Restricted Cash", which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this standard for the year ended December 31, 2016, which increased net cash used in investing activities by $1.9 million and decreased net cash used in investing activities by $4.7 million for the years ended December 31, 2015 and 2014, respectively.
In March 2016, the FASB issued ASU 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation. This standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. Our adoption of this standard for the year ended December 31, 2016 requires us to reflect any reclassifications as of January 1, 2016, the beginning of the fiscal year of adoption.
The new standard resulted in the recognition of excess tax benefits in our provision for income taxes. Upon adoption, this resulted in a cumulative effect of an accounting change reclassification of $43.9 million to accumulated deficit on the balance sheet as of January 1, 2016 with offsetting amounts to non-current deferred tax assets and liabilities on the consolidated balance sheet. It also resulted in a decrease to the tax provision and corresponding increase to net income of $10.8 million for the previously reported nine months ended September 30, 2016. The effect on our dilutive shares is disclosed in Note 27.
We elected to retrospectively apply the changes in presentation to the consolidated statements of cash flows and no longer classify excess tax benefits or employee taxes paid for withheld shares as financing activities, which increased net cash provided by operating activities and decreased net cash used in financing activities by $10.2 million for the year ended December 31, 2015. We also elected to account for forfeitures as they occur prospectively.
The following table summarizes the impact to our consolidated balance sheet, including the net amount charged to retained earnings as of January 1, 2016 as well as the retrospective impacts on our consolidated statement of cash flows:
Consolidated balance sheet
 
January 1, 2016
 
As Reported
Recasted1
Other assets (non-current assets)
$
434.2

$
393.7

Deferred income taxes (non-current liabilities)
$
165.5

$
162.1

Accumulated deficit
$
(132.8
)
$
(88.9
)
1Recasted financial information does not include the reclassifications addressed within ASU 2015-17 below.
Consolidated statement of cash flows:
 
Year ended December 31, 2015
 
As Reported
Recasted
Net cash provided by operating activities
$
399.6

$
409.8

Net cash used for financing activities
$
(74.5
)
$
(84.7
)

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", which requires that all deferred tax assets and liabilities be classified as non-current on the balance sheet. The standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this standard for the year ended December 31, 2016 and elected to apply the amendments retrospectively. The adoption did not have any impact on the Company's results of operations, cash flows or net assets.
The following table summarizes the impact to our consolidated balance sheet at December 31, 2015:
 
December 31, 2015
 
As Reported
Recasted
Deferred income taxes (current assets)
$
69.5

$
—

Other assets (non-current assets)
$
434.2

$
479.6

Deferred income taxes (current liabilities)
$
6.6

$
—

Deferred income taxes (non-current liabilities)
$
165.5

$
148.0


In May 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value ("NAV") per Share (or its Equivalent)”, which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. However, sufficient information must be provided to permit reconciliation of the fair value of assets categorized within the fair value hierarchy to the total fair value of plan assets. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The standard is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company adopted this standard for the year ended December 31, 2016 and applied this update retrospectively. The adoption of the standard resulted in the investment of certain debt asset backed securities and hedge funds for a combined fair value of $16.2 million being represented outside of the fair value hierarchy schedule at December 31, 2016, within Note 9. There were no retrospective reclassifications required as these investments did not exist at or prior to December 31, 2015.
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.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the guidance that an entity should use related to revenue recognition. This standard was effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies will be allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to this date.
In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," which provides clarification around identifying performance obligations and the treatment of different licensing contracts. Additional standards related to revenue from contracts with customers have been issued during 2016 to provide narrow scope improvements and clarification. During the year ended December 31, 2016, we have continued to assess the potential impact of the revised guidance on our consolidated financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters.
Acquisitions and Divestitures
Acquisitions and Divestitures
ACQUISITIONS AND DIVESTITURES
Acquisitions
During the year ended December 31, 2016, we completed multiple acquisitions. Included in these acquisitions were a refinish business based in Southeast Asia, a light-vehicle business specializing in interior coatings based in North America, fifty-one percent controlling interest in an industrial business specializing in coil and spray coatings in North America, and a refinish distributor in Western Europe (together, the "2016 Acquisitions" or combined with immaterial acquisitions completed during 2015 and 2016, the "2016 and 2015 Acquisitions"). Under the terms of the fifty-one percent acquisition, we are committed to purchase the remaining non-controlling interest of the entity in two equal installments in 2018 and 2019. The fair value of the non-controlling interest was $51.3 million as of the acquisition date. The 2016 Acquisitions were accounted for as business combinations and the overall impacts to our consolidated financial statements were not considered material, either individually or in the aggregate, as of and for the year ended December 31, 2016. The total fair value of consideration paid or payable was $126.6 million. Net sales for the 2016 Acquisitions on our consolidated statements of operations for the year ended December 31, 2016 was $50.4 million.
At December 31, 2016, we have not finalized the purchase accounting related to the 2016 Acquisitions and the amounts reflected in our consolidated balance sheet represent preliminary values. We expect to finalize our purchase accounting during the respective measurement periods which will be no later than one year following the closing dates.
Divestitures
In September 2014, we completed the sale of a business within the Performance Coatings reportable segment, which primarily included technology that had been developed as an integrated software solution for the collision repair supply chain market. The sale resulted in the receipt of $17.5 million during the year ended December 31, 2014. As a result, we recognized a pre-tax gain on sale of $1.2 million ($0.7 million after tax) recorded within other expense, net for the year ended December 31, 2014.
Goodwill and Identifiable Intangible Assets
Goodwill and Identifiable Intangible Assets
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
During the year ended December 31, 2016, we completed multiple business acquisitions, see Note 5 for further details on the 2016 Acquisitions. The fair value associated with definite-lived intangible assets from the 2016 Acquisitions was $102.6 million, comprised of $17.7 million in technology, $10.7 million of trademarks, $73.7 million of customer relationships and $0.5 million of non-compete agreements.
Goodwill
The following table shows changes in the carrying amount of goodwill from December 31, 2015 to December 31, 2016 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
December 31, 2014
$
933.6

$
67.5

$
1,001.1

Goodwill from acquisitions
17.2

0.7

$
17.9

Foreign currency translation
(84.7
)
(6.1
)
$
(90.8
)
December 31, 2015
$
866.1

$
62.1

$
928.2

Goodwill from acquisitions
64.2

15.5

79.7

Foreign currency translation
(43.8
)
(3.1
)
(46.9
)
December 31, 2016
$
886.5

$
74.5

$
961.0


 Identifiable Intangible Assets
The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
December 31, 2016
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
417.1

$
(153.6
)
$
263.5

10.2
Trademarks—indefinite-lived
273.2

—

273.2

Indefinite
Trademarks—definite-lived
55.0

(11.4
)
43.6

14.8
Customer relationships
672.6

(123.3
)
549.3

18.7
Non-compete agreements
2.4

(1.7
)
0.7

4.6
Total
$
1,420.3

$
(290.0
)
$
1,130.3

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

$
(117.2
)
$
295.8

10.0
Trademarks—indefinite-lived
284.4

—

284.4

Indefinite
Trademarks—definite-lived
45.2

(8.5
)
36.7

14.7
Customer relationships
676.1

(102.1
)
574.0

19.3
Non-compete agreements
1.9

(1.2
)
0.7

4.6
Total
$
1,420.6

$
(229.0
)
$
1,191.6

 

Activity related to in process research and development projects for the years ended December 31, 2015 and 2016:
In Process Research and Development
Activity
Balance at December 31, 2014
$
5.2

Completed
(3.5
)
Abandoned
(0.1
)
Balance at December 31, 2015
$
1.6

Completed
—

Abandoned
—

Foreign currency translation
(0.1
)
Balance at December 31, 2016
$
1.5


The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is:
2017
$
80.5

2018
$
80.5

2019
$
80.5

2020
$
80.4

2021
$
80.4

Restructuring
Restructuring
RESTRUCTURING
In accordance with the applicable guidance for Nonretirement Postemployment Benefits, we accounted for termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated.
We have incurred costs in connection with involuntary termination benefits associated with our corporate-related initiatives, including our transition to a standalone entity and cost-saving opportunities associated with our Fit For Growth and Axalta Way initiatives. During the years ended December 31, 2016, 2015 and 2014 we incurred restructuring costs of $58.5 million, $31.9 million and $8.5 million, respectively. These amounts are recorded within selling, general and administrative expenses in the consolidated statements of operations. The payments associated with these actions are expected to be completed within 12 to 15 months from the balance sheet date.
The following table summarizes the activity related to the restructuring reserves and expenses for the years ended December 31, 2016, 2015 and 2014:
Balance at December 31, 2013
$
98.4

Expense recorded
8.5

Payments made
(51.6
)
Foreign currency translation
(6.8
)
Balance at December 31, 2014
$
48.5

Expense recorded
31.9

Payments made
(33.8
)
Foreign currency translation
(5.3
)
Balance at December 31, 2015
$
41.3

Expense recorded
58.5

Payments made
(31.0
)
Foreign currency translation
(2.7
)
Balance at December 31, 2016
$
66.1

Long-term Employee Benefits
Long-term Employee Benefits
LONG-TERM EMPLOYEE BENEFITS
Defined Benefit Pension and Other Long-Term Employee Benefits Plans
Defined Benefit Pensions
Axalta has defined benefit plans that cover certain employees worldwide, with over 85% of the pension benefit obligation within the European region as of December 31, 2016.
Other Long-Term Employee Benefits
We also have certain long-term employee health care and life insurance benefits for certain eligible employees. These programs require retiree contributions based on retiree-selected coverage levels for certain retirees. In conjunction with the plan amendments completed in 2014, these plans are now immaterial to Axalta.
Obligations and Funded Status
The measurement date used to determine defined benefit obligations was December 31. The following table sets forth the changes to the projected benefit obligations ("PBO") and plan assets for the years ended December 31, 2016 and 2015 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2016 and 2015 for the Company’s defined benefit pension plans:
 
Defined Benefits
 
Year Ended December 31,
Obligations and Funded Status
2016
2015
Change in benefit obligation:
 
 
Projected benefit obligation at beginning of year
$
541.7

$
613.1

Service cost
10.7

12.0

Interest cost
15.1

16.9

Participant contributions
1.0

0.9

Actuarial losses (gains), net
57.4

(12.0
)
Plan curtailments, settlements and special termination benefits
(2.0
)
(4.7
)
Benefits paid
(21.8
)
(27.4
)
Amendments
—

2.7

Currency translation adjustment
(54.5
)
(59.8
)
Projected benefit obligation at end of year
547.6

541.7

Change in plan assets:
 
 
Fair value of plan assets at beginning of year
278.4

294.5

Actual return on plan assets
41.1

6.0

Employer contributions
27.0

31.1

Participant contributions
1.0

0.9

Benefits paid
(21.8
)
(27.4
)
Settlements
(1.2
)
(4.7
)
Currency translation adjustment
(35.8
)
(22.0
)
Fair value of plan assets at end of year
288.7

278.4

Funded status, net
$
(258.9
)
$
(263.3
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
Other assets
$
0.3

$
0.2

Other accrued liabilities
(10.1
)
(11.2
)
Accrued pension and other long-term employee benefits
(249.1
)
(252.3
)
Net amount recognized
$
(258.9
)
$
(263.3
)

The projected benefit obligation for other long-term benefit plans was reduced to zero during the year ended December 31, 2015 when the plan was effectively settled from the $0.1 million projected benefit obligation at the beginning of the 2015.
The PBO is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation ("ABO") is the actuarial present value of benefits attributable to employee service rendered to date, but does not include the effects of estimated future pay increases.
The following table reflects the ABO for all defined benefit pension plans as of December 31, 2016 and 2015. Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets.
 
Year Ended December 31,
 
2016
2015
ABO
$
516.4

$
500.1

Plans with PBO in excess of plan assets:
 
 
PBO
$
542.6

$
537.1

ABO
$
511.6

$
495.7

Fair value plan assets
$
283.4

$
273.7

Plans with ABO in excess of plan assets:
 
 
PBO
$
488.2

$
532.0

ABO
$
461.3

$
492.7

Fair value plan assets
$
232.6

$
270.3


The pre-tax amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss include the following related to defined benefit plans:
 
Year Ended December 31,
 
2016
2015
Accumulated net actuarial losses
$
(76.6
)
$
(48.3
)
Accumulated prior service credit
0.9

1.5

Total
$
(75.7
)
$
(46.8
)

Accumulated net actuarial losses and prior service credits related to other long-term benefit plans were reduced to zero for the year ended December 31, 2015 when the plan was effectively settled.
The accumulated net actuarial losses for pensions relate primarily to differences between the actual net periodic expense and the expected net periodic expense resulting from differences in the significant assumptions, including return on assets, discount rates and compensation trends, used in these estimates. For individual plans in which the accumulated net actuarial losses exceed 10% of the higher of the market value of plan assets or the PBO at the beginning of the year, amortization of such excess has been included in net periodic benefit costs for pension and other long-term employee benefits. The amortization period is the average remaining service period of active employees expected to receive benefits unless a plan is mostly inactive in which case the amortization period is the average remaining life expectancy of the plan participants. Accumulated prior service credit is amortized over the future service periods of those employees who are active at the dates of the plan amendments and who are expected to receive benefits.
The estimated pre-tax amounts that are expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2017 for the defined benefit plans is as follows:
 
2017
Amortization of net actuarial losses
$
(1.8
)
Amortization of prior service credit
—

Total
$
(1.8
)

Components of Net Periodic Benefit Cost
The following table sets forth the pre-tax components of net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014.
 
Defined Benefits
 
Year Ended December 31,
 
2016
2015
2014
Components of net periodic benefit cost and amounts recognized in other comprehensive (income) loss:
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
$
10.7

$
12.0

$
15.4

Interest cost
15.1

16.9

22.9

Expected return on plan assets
(12.6
)
(14.6
)
(14.8
)
Amortization of actuarial (gain) loss, net
0.4

0.4

(0.3
)
Amortization of prior service credit
—

(0.1
)
—

Curtailment gain
(1.1
)
—

(7.3
)
Settlement (gain) loss
(0.5
)
0.5

0.1

Special termination benefit loss
0.2

—

—

Net periodic benefit cost
12.2

15.1

16.0

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
27.7

(3.4
)
60.6

Amortization of actuarial gain (loss), net
(0.4
)
(0.4
)
0.3

Prior service (credit) cost
—

2.7

(4.3
)
Amortization of prior service credit
—

0.1

—

Curtailment gain
1.1

—

7.3

Settlement gain (loss)
0.5

(0.5
)
(0.1
)
Other adjustments
—

—

(4.9
)
Total (gain) loss recognized in other comprehensive (income) loss
28.9

(1.5
)
58.9

Total recognized in net periodic benefit cost and other comprehensive (income) loss
$
41.1

$
13.6

$
74.9

 
 
Other Long-Term Employee Benefits
 
Year Ended December 31,
 
2016
2015
2014
Components of net periodic benefit (gain) cost and amounts recognized in other comprehensive (income) loss:
 
 
 
Net periodic benefit (gain) cost:
 
 
 
Service cost
$
—

$
—

$
0.1

Interest cost
—

—

0.1

Amortization of actuarial loss, net
—

—

0.1

Amortization of prior service credit
—

(3.7
)
(1.4
)
Settlement loss
—

0.3

—

Net periodic benefit (gain) cost
—

(3.4
)
(1.1
)
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss
—

—

(4.6
)
Amortization of actuarial gain (loss)
—

—

(0.1
)
Amortization of prior service credit
—

3.7

1.4

Settlement loss
—

(0.3
)
—

Other adjustments
—

0.3

—

Total (gain) loss recognized in other comprehensive income
—

3.7

(3.3
)
Total recognized in net periodic benefit cost and other comprehensive (income) loss
$
—

$
0.3

$
(4.4
)

Significant Events
During the year ended December 31, 2014, we recorded a curtailment gain of $7.3 million within selling, general and administrative expenses due to an amendment to one of our pension plans. In addition, amendments to our long-term employee benefit plans resulted in increases to accumulated other comprehensive income of $12.0 million at December 31, 2014. These amounts will continue to be recognized in earnings over the remaining future service periods of active participants.
Assumptions
We used the following assumptions in determining the benefit obligations and net periodic benefit cost:
 
2016
2015
2014
Pension Benefits
 
 
 
Weighted-average assumptions:
 
 
 
Discount rate to determine benefit obligation
2.52
%
3.05
%
3.23
%
Discount rate to determine net cost
3.05
%
3.23
%
4.11
%
Rate of future compensation increases to determine benefit obligation
3.07
%
3.03
%
3.57
%
Rate of future compensation increases to determine net cost
3.03
%
3.57
%
3.52
%
Rate of return on plan assets to determine net cost
4.75
%
5.21
%
5.23
%
 
2016
2015
2014
Other Long-Term Employee Benefits
 
 
 
Weighted-average assumptions:
 
 
 
Discount rate to determine benefit obligation
—

—

1.50
%
Discount rate to determine net cost
—

1.50
%
4.80
%
Rate of future compensation increases to determine benefit obligation
—

—

—

Rate of future compensation increases to determine net cost
—

—

—


The discount rates used reflect the expected future cash flow based on plan provisions, participant data and the currencies in which the expected future cash flows will occur. For the majority of our defined benefit pension obligations, we utilize prevailing long-term high quality corporate bond indices applicable to the respective country at the measurement date. In countries where established corporate bond markets do not exist, we utilize other index movement and duration analysis to determine discount rates. The long-term rate of return on plan assets assumptions reflect economic assumptions applicable to each country and assumptions related to the preliminary assessments regarding the type of investments to be held by the respective plans.
Estimated future benefit payments
The following reflects the total benefit payments expected to be paid for defined benefits:
Year ended December 31,
Benefits
2017
$
25.2

2018
$
24.1

2019
$
27.5

2020
$
25.7

2021
$
25.3

2022—2026
$
164.2

There are no future benefit payments expected to be paid for other long-term employee benefits as this plan was effectively settled at December 31, 2015.
Plan Assets
The defined benefit pension plans for our subsidiaries represent single-employer plans and the related plan assets are invested within separate trusts. Each of the single-employer plans is managed in accordance with the requirements of local laws and regulations governing defined benefit pension plans for the exclusive purpose of providing pension benefits to participants and their beneficiaries. Pension plan assets are typically held in a trust by financial institutions. Our asset allocation targets established are intended to achieve the plan’s investment strategies.
Equity securities include varying market capitalization levels. U.S. equity securities are primarily large-cap companies. Fixed income investments include corporate issued, government issued and asset backed securities. Corporate debt securities include a range of credit risk and industry diversification. Other investments include real estate and private market securities such as insurance contracts, interests in private equity, and venture capital partnerships. Assets measured using NAV a practical expedient, as described in Note 4, include debt asset backed securities and hedge funds. Debt asset backed securities primarily consist of collateralized debt obligations. The market values for these assets are based on the net asset values multiplied by the number of shares owned.
Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although we believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The Company’s investment strategy in pension plan assets is to generate earnings over an extended time to help fund the cost of benefits while maintaining an adequate level of diversification for a prudent level of risk. The table below summarizes the weighted average actual and target pension plan asset allocations at December 31 for all funded Axalta defined benefit plans.
Asset Category
2016
2015
Target Allocation
Equity securities
30-35%
30-35%
30-35%
Debt securities
35-40%
35-40%
35-40%
Real estate
0-5%
0-5%
0-5%
Other
25-30%
20-25%
25-30%
The table below presents the fair values of the defined benefit pension plan assets by level within the fair value hierarchy, as described in Note 3, at December 31, 2016 and 2015, respectively.
 
Fair value measurements at
December 31, 2016
 
Total
Level 1
Level 2
Level 3
Asset Category:
 
 
 
 
Cash and cash equivalents
$
2.8

$
2.8

$
—

$
—

U.S. equity securities
30.7

30.7

—

—

Non-U.S. equity securities
63.9

63.5

0.3

0.1

Debt securities—government issued
60.9

48.0

12.9

—

Debt securities—corporate issued
38.4

31.0

5.3

2.1

Hedge funds
0.2

0.2

—

—

Private market securities
64.4

0.2

0.1

64.1

Real estate investments
11.2

—

—

11.2

Total
$
272.5

$
176.4

$
18.6

$
77.5

Debt asset backed securities at NAV
8.8

 
 
 
Hedge funds at NAV
7.4

 
 
 
 
$
288.7

 
 
 
 
Fair value measurements at
December 31, 2015
 
Total
Level 1
Level 2
Level 3
Asset Category:
 
 
 
 
Cash and cash equivalents
$
2.8

$
2.8

$
—

$
—

U.S. equity securities
23.6

23.6

—

—

Non-U.S. equity securities
70.3

69.8

0.4

0.1

Debt—government issued
64.8

53.0

11.8

—

Debt—corporate issued
44.4

37.7

4.5

2.2

Hedge funds
0.2

0.2

—

—

Private market securities
63.8

0.4

0.1

63.3

Real estate investments
8.5

—

—

8.5

Total
$
278.4

$
187.5

$
16.8

$
74.1


Level 3 assets are primarily insurance contracts pledged on behalf of employees with benefits in certain countries, ownership interests in investment partnerships, trusts that own private market securities, real estate investments, and other debt and equity investments. The fair values of our insurance contracts are determined based on the present value of the expected future benefits to be paid under the contract, discounted at a rate consistent with the related benefit obligation. Our real estate investments are primarily comprised of investments in commercial property funds externally valued using third party pricing methodologies, which are not actively traded on public exchanges. Debt and equity securities consist primarily of small investments in other investments that are valued at different frequencies based on the value of the underlying investments. The table below presents a roll forward of activity for these assets for the years ended December 31, 2016 and 2015.
 
Level 3 assets
 
Total
Private
market
securities
Debt and Equity
Real
estate investments
Ending balance at December 31, 2014
$
65.8

$
63.0

$
2.4

$
0.4

Realized (loss)
—

—

—

—

Change in unrealized gain
(5.2
)
(5.2
)
(0.1
)
0.1

Purchases, sales, issues and settlements
13.5

5.5

—

8.0

Transfers in/(out) of Level 3
—

—

—

—

Ending balance at December 31, 2015
$
74.1

$
63.3

$
2.3

$
8.5

Realized (loss)
—

—

—

—

Change in unrealized gain
1.3

(1.4
)
(0.1
)
2.8

Purchases, sales, issues and settlements
2.1

2.2

—

(0.1
)
Transfers in/(out) of Level 3
—

—

—

—

Ending balance at December 31, 2016
$
77.5

$
64.1

$
2.2

$
11.2


Assumptions and Sensitivities
The discount rate is determined as of each measurement date, based on a review of yield rates associated with long-term, high-quality corporate bonds. The calculation separately discounts benefit payments using the spot rates from a long-term, high-quality corporate bond yield curve.
The long-term rate of return assumption represents the expected average rate of earnings on the funds invested to provide for the benefits included in the benefit obligations. The long-term rate of return assumption is determined based on a number of factors, including historical market index returns, the anticipated long-term asset allocation of the plans, historical plan return data, plan expenses and the potential to outperform market index returns. For 2017, the expected long-term rate of return is 4.73%.
Anticipated Contributions to Defined Benefit Plan
For funded pension plans, our funding policy is to fund amounts for pension plans sufficient to meet minimum requirements set forth in applicable benefit laws and local tax laws. Based on the same assumptions used to measure our benefit obligations at December 31, 2016 we expect to contribute $12.8 million to our defined benefit plans during 2017. No plan assets are expected to be returned to the Company in 2017.
Defined Contribution Plans
The Company sponsors defined contribution plans in both its US and non-US subsidiaries, under which salaried and certain hourly employees may defer a portion of their compensation. Eligible participants may contribute to the plan up to the allowable amount as determined by the plan of their regular compensation before taxes. All contributions and Company matches are invested at the direction of the employee. Company matching contributions vest immediately and aggregated to $43.3 million, $36.7 million and $35.9 million for the years ended December 31, 2016, 2015 and 2014, respectively.
Commitments and Contingencies
Commitments and Liabilities
COMMITMENTS AND CONTINGENCIES
Leases
At December 31, 2016, we have recorded approximately $11.8 million in property, plant and equipment representing our landlord's estimated costs incurred to construct a property under a separate build-to-suit lease arrangement. This lease commenced construction during 2015 with construction expected to be completed during 2017. The construction related to the build-to-suit lease has estimated total costs of approximately $37.9 million.
For accounting purposes, we are deemed the owner of the assets during the construction period and are required to record these costs as construction in progress during the construction period, with an offsetting liability in the same amount recorded to current and long-term borrowings, depending on the expected construction completion dates. These costs do not reflect the Company’s cash obligations, but represent the landlord’s costs to construct the properties, including costs for tenant improvements.
During the year ended December 31, 2016, one of our leases previously treated as a build-to-suit lease arrangement completed construction and is now treated as a sale-leaseback financing. The lessor's building costs will be depreciated over an estimated useful life. At December 31, 2016, the net book value of the building was $17.2 million, with a corresponding offset within long-term borrowings. The table below reflects the total cash payments related to the transaction during the rental term as of December 31, 2016:
 
Sale-leaseback obligations
2017
$
1.0

2018
1.7

2019
1.7

2020
1.7

2021
1.7

Thereafter
19.6

Total minimum payments
$
27.4


We use various leased facilities and equipment in our operations. The terms for these leased assets vary depending on the lease agreement. Net rental expense under operating leases were $48.0 million, $48.2 million and $61.6 million for the years ended December 31, 2016, 2015 and 2014, respectively.
At December 31, 2016, future minimum payments under non-cancelable operating leases were as follows:
 
Operating
Leases
2017
$
37.7

2018
31.0

2019
22.2

2020
18.2

2021
15.6

Thereafter
90.9

Total minimum payments
$
215.6


Other
We are subject to various pending lawsuits and other claims including civil, regulatory and environmental matters. Certain of these lawsuits and other claims may have an impact on us. These litigation matters may involve indemnification obligations by third parties and/or insurance coverage covering all or part of any potential damage awards against DuPont and/or us. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time.
The potential effects, if any, on the financial statements of Axalta will be recorded in the period in which these matters are probable and estimable.
In addition to the aforementioned matters, we are party to various legal proceedings in the ordinary course of business. Although the ultimate resolution of these various proceedings cannot be determined at this time, management does not believe that such proceedings, individually or in the aggregate, will have a material adverse effect on the financial statements of Axalta.
Stock-based Compensation
Stock-based Compensation
STOCK-BASED COMPENSATION
During the years ended December 31, 2016, 2015 and 2014, we recognized $41.1 million, $30.2 million and $8.0 million, respectively, in stock-based compensation expense which was allocated between costs of goods sold and selling, general and administrative expenses on the consolidated statements of operations. We recognized a tax benefit on stock-based compensation of $14.0 million, $10.7 million and $2.8 million and for the years ended December 31, 2016, 2015 and 2014, respectively.
Included in the $30.2 million of stock-based compensation expense recorded during the year ended December 31, 2015 was $8.2 million of stock-based compensation expense attributable to accelerated vesting of all issued and outstanding stock options issued under the Axalta Coating Systems Bermuda Co., Ltd. 2013 Equity Incentive Plan (the "2013 Plan"), as a result of the April 2015 Carlyle Offerings which reduced Carlyle's interest in Axalta to below 50%, triggering a liquidity event (the "Liquidity Event") as defined in the 2013 Plan.
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. As a result of our adoption of ASU 2016-09, "Stock Compensation" as of January 1, 2016 (discussed further at Note 4) we have elected to recognize forfeitures as they occur. As our forfeiture rate prior to this adoption was estimated at 0%, this adoption did not result in a change to our financial statements.
Description of Equity Incentive Plan
In 2013, Axalta’s Board of Directors approved the 2013 Plan which reserved an aggregate of 19,839,143 common shares of the Company for issuance to employees, directors and consultants. The 2013 Plan provided for the issuance of stock options, restricted stock or other stock-based awards. No further awards may be granted pursuant to the 2013 Plan.
In 2014, Axalta's Board of Directors approved the Axalta Coating Systems Ltd. 2014 Incentive Award Plan (the "2014 Plan") which reserved an aggregate 11,830,000 shares of common stock of the Company for issuance to employees, directors and consultants. The 2014 Plan provides for the issuance of stock options, restricted stock or other stock-based awards. All awards granted pursuant to the 2014 Plan must be authorized by the Board of Directors of Axalta or a designated committee thereof. Our Board of Directors has generally delegated responsibility for administering the 2014 Plan to our Compensation Committee.
The terms of the options may vary with each grant and are determined by the Compensation Committee within the guidelines of the 2013 and 2014 Plans. Option life cannot exceed ten years and the Company may settle option exercises by issuing new shares, treasury shares or shares purchased on the open market.
For all awards subsequent to the IPO, the market value (and exercise price for stock options) of the award is equal to the closing price of the stock on the date of grant. Valuation of awards prior to this date are discussed below.
Stock Options
The Black-Scholes option pricing model was used to estimate fair values of the options as of the date of the grant. The weighted average fair values of options granted in 2016, 2015 and 2014 were $5.69, $8.15 and $1.92 per share, respectively. Options granted in 2016 and 2015 have a three-year vesting period. Principal weighted average assumptions used in applying the Black-Scholes model were as follows:
 
2016 Grants
2015 Grants
2014 Grants
Expected Term
6.00 years

6.00 years

7.81 years

Volatility
21.63
%
22.19
%
28.28
%
Dividend Yield
—

—

—

Discount Rate
1.45
%
1.79
%
2.21
%
During the year ended December 31, 2014, we granted options with strike prices of $5.92, $7.21, $8.88 and $11.84. The per share fair value of our common stock for those awards was estimated using a contemporaneous valuation consistent with the American Institute of Certified Public Accountants Practice Aid, "Valuation of Privately-Held Company Equity Securities Issued as Compensation" (the "Practice Aid"). In conducting this valuation, we considered objective and subjective factors that we believed to be relevant, including our best estimate of our business condition, prospects and operating performance. Within this contemporaneous valuation, a range of factors, assumptions and methodologies were used. The significant factors included:
•
the fact that we were a private company with illiquid securities;
•
our historical operating results;
•
our discounted future cash flows, based on our projected operating results;
•
valuations of comparable public companies; and
•
the risk involved in the investment, as related to earnings stability, capital structure, competition and market potential.
For the contemporaneous valuation of our common stock, management estimated, as of the issuance date, our enterprise value on a continuing operations basis, using the income and market approaches, as described in the Practice Aid. The income approach utilized the discounted cash flow ("DCF") methodology based on our financial forecasts and projections, as detailed below. The market approach utilized the Guideline Public Company and Guideline Transactions methods, as detailed below.
For the DCF methodology, we prepared annual projections of future cash flows through 2018. Beyond 2018, projected cash flows through the terminal year were projected at long-term sustainable growth rates consistent with long-term inflationary and industry expectations. Our projections of future cash flows were based on our estimated net debt-free cash flows and were discounted to the valuation date using a weighted-average cost of capital estimated based on market participant assumptions.
For the Guideline Public Company and Guideline Transactions methods, we identified a group of comparable public companies and recent transactions within the chemicals industry. For the comparable companies, we estimated market multiples based on trading prices and trailing 12 months EBITDA. These multiples were then applied to our trailing 12 months EBITDA. When selecting comparable companies, consideration was given to industry similarity, their specific products offered, financial data availability and capital structure.
For the comparable transactions, we estimated market multiples based on prices paid for the related transactions and trailing 12 months EBITDA. These multiples were then applied to our trailing 12 months EBITDA. The results of the market approaches corroborated the fair value determined using the income approach.
To estimate the expected stock option term for the $5.92 and $7.21 stock options referred to above, we used the simplified method as the options strike price equaled the grant date fair value and Axalta, a privately-held company, had no exercise history. Based upon this simplified method the $5.92 and $7.21 per share stock options have an expected term of 6.5 years. The strike price for the $8.88 per share and $11.84 per share tranches of options exceeded fair value at the grant date which required the use of an estimate of an implicitly longer holding period, resulting in the term of 8.25 years.
The expected term assumptions used for the 2015 and 2016 grants were also determined using the simplified method and resulted in an expected term of 6.0 years. We do not anticipate paying cash dividends in the foreseeable future and, therefore, use an expected dividend yield of zero. Volatility for outstanding grants is based upon the peer group since the Company was either privately-held at the date of grant or had a limited history as a public company. The discount rate was derived from the U.S. Treasury yield curve.
A summary of stock option award activity as of and for the year ended December 31, 2016 is presented below:
 
Awards
(in millions)
Weighted-
Average
Exercise
Price
Aggregate
Intrinsic
Value
 (in millions)
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at December 31, 2015
11.0

$
12.19

 
 
Granted
1.1

$
23.28

 
 
Exercised
(2.1
)
$
7.92

 
 
Forfeited
(0.4
)
$
11.40

 
 
Outstanding at December 31, 2016
9.6

$
14.40

 
 
Vested and expected to vest at December 31, 2016
9.6

$
14.40

$
128.3

7.17
Exercisable at December 31, 2016
7.7

$
11.42

$
124.0

6.79

Cash received by the Company upon exercise of options in 2016 was $30.1 million, inclusive of tax benefits of $13.4 million. The intrinsic value of options exercised in 2016 and 2015 was $42.5 million and $166.8 million, respectively. The intrinsic value of options exercised in 2014 was not material.
The fair value of shares vested during 2016 and 2015 was $3.4 million and $24.3 million, respectively.
At December 31, 2016, there was $4.8 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 1.8 years.
Restricted Stock Awards and Restricted Stock Units
During the years ended December 31, 2016 and 2015, we issued 0.9 million shares and 1.7 million shares of restricted stock awards and restricted stock units, respectively, with average grant prices of $23.64 per share and $32.22 per share, respectively. A portion of these awards vests ratably over three years. Other awards granted to certain members of management cliff vest over two and three year periods and are subject to accelerated vesting in the event of the award recipient's termination of employment under certain circumstances.
A summary of restricted stock and restricted stock unit award activity as of December 31, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
1.7

$
32.22

Granted
0.9

$
23.64

Vested
(0.2
)
$
31.60

Forfeited
(0.1
)
$
26.91

Outstanding at December 31, 2016
2.3

$
29.18


At December 31, 2016, there was $25.0 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. Compensation expense is recognized for the fair values of the awards over the requisite service period of the awards using the graded-vesting attribution method.
The intrinsic value of awards vested during 2016 was $5.5 million. The total fair value of awards vested during 2016 was $6.2 million. No shares vested prior to 2016.
Performance Stock Awards and Performance Share Units
During the year ended December 31, 2016, the Company granted performance stock awards and performance share units (collectively referred to as "PSUs") to certain employees of the Company as part of their annual equity compensation award.
PSUs are tied to the Company’s total shareholder return ("TSR") relative to the TSR of a selected industry peer group. Each award covers a three-year performance cycle starting January 1, 2016 through December 31, 2018 with a three-year service period vesting requirement. Awards will cliff vest upon meeting the applicable TSR thresholds and the three-year service requirement. The actual number of shares awarded is adjusted to between zero and 200% of the target award amount based upon achievement of pre-determined objectives. TSR relative to peers is considered a market condition under applicable authoritative guidance. 
A summary of performance stock and performance share unit award activity as of December 31, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
—

$
—

Granted
0.3

$
24.74

Vested
—

$
—

Forfeited
—

$
—

Outstanding at December 31, 2016
0.3

$
27.74


At December 31, 2016, there was $6.0 million of unamortized expense relating to unvested PSUs that is expected to be amortized over a weighted average period of 2.1 years. Compensation expense is recognized for the fair values of the awards over the requisite service period of the awards using the graded-vesting attribution method.
Related Party Transactions
Related Party Transactions
RELATED PARTY TRANSACTIONS
The Carlyle Group L.P. and its affiliates ("Carlyle")
We entered into a consulting agreement with Carlyle Investment Management L.L.C. ("Carlyle Investment"), an affiliate of Carlyle pursuant to which Carlyle Investment provided certain consulting services to Axalta. Under this agreement, subject to certain conditions, we were required to pay an annual consulting fee to Carlyle Investment of $3.0 million payable in equal quarterly installments and reimburse Carlyle Investment for out-pocket expenses incurred in providing the consulting services. During the year ended December 31, 2014, we recorded expense of $3.2 million in regular monthly management fees and out of pocket costs as well as a $13.4 million charge related to the termination of the agreement upon completion of the IPO.
Service King Collision Repair
Service King Collision Repair, a portfolio company of funds affiliated with Carlyle, has purchased products from our distributors in the past and may continue to do so in the future. During the year ended December 31, 2014, Carlyle sold their majority interest in Service King Collision Repair, thus making the entity no longer a related party. Related party sales prior to this transaction were $4.0 million for the year ended December 31, 2014.
Other Expense, Net
Other Expense, Net
OTHER EXPENSE, NET
 
Year Ended December 31,
 
2016
2015
2014
Foreign exchange losses, net
$
30.6

$
93.7

$
81.2

Management fees and expenses
—

—

16.6

Impairment of real estate investment
10.5

30.6

—

Indemnity (gains) losses associated with the Acquisition
(0.7
)
(1.0
)
17.8

Debt extinguishment and refinancing related costs
97.6

2.5

6.1

Other miscellaneous expense (income), net
4.7

(14.6
)
(6.7
)
Total
$
142.7

$
111.2

$
115.0


Our net foreign exchange losses for the years ended December 31, 2016, 2015 and 2014 consist primarily of the impacts related to the remeasurement of our non-U.S. dollar denominated monetary assets and liabilities at our Venezuelan subsidiary, which is a U.S. dollar functional entity. In addition, as discussed further in Note 26, during the years ended December 31, 2016 and 2015, we recorded impairment charges on our non-operational real estate investment.
Expense related to debt extinguishment and refinancing related costs includes premiums on the redemption of our 2021 Dollar Senior Notes and 2021 Euro Senior Notes (collectively, the "2021 Senior Notes") during the year ended December 31, 2016. In addition, the refinancing of our 2021 Senior Notes, the amendment of our 2020 Dollar Term Loans and 2020 Euro Term Loans (collectively, the “2020 Term Loans”), an amendment to our Revolving Credit Facility, as well as multiple pre-payments on our 2020 Term Loans resulted in losses on extinguishment and the write-off of unamortized deferred financing costs and original issue discounts.
Other miscellaneous income, net included a gain for the year ended December 31, 2015 resulting from the acquisition of an additional 25% interest in an equity method investee for a purchase price of $4.3 million. As a result of the acquisition, we obtained a controlling interest and recognized a gain of $5.4 million on the remeasurement of our previously held equity interest as of the acquisition date. Also included in other miscellaneous income, net for the year ended December 31, 2015 was the recognition of a $5.6 million gain on derivative contracts compared to losses of $4.3 million and $1.4 million for the years ended December 31, 2016 and 2014, respectively.
Income Taxes
Income Taxes
INCOME TAXES
Domestic and Foreign Components of Income Before Income Taxes
 
Year Ended December 31,
 
2016
2015
2014
Domestic
$
31.9

$
(19.4
)
$
(8.8
)
Foreign
55.5

180.6

45.6

Total
$
87.4

$
161.2

$
36.8


Provision (Benefit) for Income Taxes
 
Year Ended December 31, 2016
Year Ended December 31, 2015
Year Ended December 31, 2014
 
Current  
Deferred  
Total  
Current  
Deferred  
Total  
Current  
Deferred  
Total  
U.S. federal
$
0.9

$
(0.2
)
$
0.7

$
—

$
19.2

$
19.2

$
—

$
(2.1
)
$
(2.1
)
U.S. state and local
3.7

8.3

12.0

3.1

8.6

11.7

2.0

(2.9
)
(0.9
)
Foreign
49.4

(22.3
)
27.1

65.2

(32.8
)
32.4

38.3

(33.2
)
5.1

Total
$
54.0

$
(14.2
)
$
39.8

$
68.3

$
(5.0
)
$
63.3

$
40.3

$
(38.2
)
$
2.1

Reconciliation to U.S. Statutory Rate
 
Year Ended December 31, 2016
Year Ended December 31, 2015
Year Ended December 31, 2014
Statutory U.S. federal income tax rate(1)
$
30.6

35.0
 %
$
56.4

35.0
 %
$
12.9

35.0
 %
Foreign income taxed at rates other than 35%
(45.6
)
(52.2
)
(41.4
)
(25.6
)
(46.7
)
(127.0
)
Changes in valuation allowances
9.6

11.0

34.4

21.3

44.4

120.9

Foreign exchange gain (loss), net
3.1

3.5

(10.5
)
(6.5
)
8.7

23.7

Unrecognized tax benefits(2)
7.1

8.1

0.4

0.3

(44.0
)
(119.7
)
Foreign taxes
4.5

5.1

5.8

3.6

1.2

3.3

Non-deductible interest
6.7

7.6

4.9

3.0

15.4

41.9

Non-deductible expenses
4.7

5.4

5.5

3.4

14.2

38.6

Tax credits
(6.7
)
(7.7
)
(5.5
)
(3.4
)
(5.1
)
(13.8
)
Excess tax benefits relating to share-based compensation(3)
(13.4
)
(15.4
)
—

—

—

—

Venezuela impairment
23.8

27.2

10.7

6.6

—

—

U.S. state and local taxes, net
7.8

9.0

8.1

5.0

—

—

Other - net
7.6

9.0

(5.5
)
(3.4
)
1.1

2.8

Total income tax provision (benefit) / effective tax rate
$
39.8

45.6
 %
$
63.3

39.3
 %
$
2.1

5.7
 %
(1)
The U.S. statutory rate has been used as management believes it is more meaningful to the Company.
(2)
Within this amount, the Company released an unrecognized tax benefit of $21.1 million in 2014 and recorded an unrecognized tax benefit of $3.6 million in 2016, both of which related to non-deductible interest and debt acquisition costs. These adjustments were fully offset by changes in the valuation allowance.
(3)
During the year ended December 31, 2016, the Company early adopted ASU 2016-09, which now requires the excess tax benefits related to share-based compensation to be reflected in the consolidated statements of operations as a component of provision for income taxes. Refer to Note 4 to the consolidated financial statements for further information.
Deferred Tax Balances
Year Ended December 31,
 
2016
2015
Deferred tax asset
 
 
Tax loss, credit and interest carryforwards
$
263.7

$
227.4

Goodwill and intangibles
48.1

93.6

Compensation and employee benefits
92.8

93.8

Accruals and other reserves
31.7

30.4

Research and development capitalization
15.7

—

Other
16.4

12.1

Total deferred tax assets
468.4

457.3

Less: Valuation allowance
(135.4
)
(127.8
)
Net deferred tax assets
333.0

329.5

Deferred tax liabilities
 
 
Property, plant & equipment
(168.4
)
(191.5
)
Equity investment & other securities
(0.7
)
(0.5
)
Unremitted earnings
(5.8
)
(6.3
)
Long-term debt
(4.2
)
(6.6
)
Total deferred tax liabilities
(179.1
)
(204.9
)
Net deferred tax asset
$
153.9

$
124.6

Non-current assets1
314.1

272.6

Non-current liability1
(160.2
)
(148.0
)
Net deferred tax asset
$
153.9

$
124.6

1The non-current deferred tax asset and deferred tax liabilities balances for the year ended December 31, 2016 and December 31, 2015 are inclusive of effects of the adoption of ASU 2015-17, discussed further at Note 4 to the consolidated financial statements. 
At December 31, 2016, the Company had $152.8 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $63.2 million have indefinite carryforward periods, and the remaining $89.6 million are subject to expiration between the years 2018 through 2026. Non-U.S. tax credit carryforwards at December 31, 2016 amounted to $1.9 million. Of these, $1.8 million have indefinite carryforward period, and the remaining are subject to expiration between the years 2018 and 2021.
In the U.S., there were approximately $62.8 million of federal net operating loss carryforwards (tax effected) subject to expiration in years beyond 2032, and $2.5 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2018 and 2035. U.S. tax credit carryforwards at December 31, 2016 amounted to $26.0 million subject to expiration between the years 2019 and 2035. U.S. interest carryforwards at December 31, 2016 of $17.7 million have an indefinite carryforward period. Utilization of our U.S. net operating loss and tax credit carryforwards may be subject to annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the net operating loss and tax credit carryforwards before their utilization.
At December 31, 2015, the Company had $144.4 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $76.4 million have indefinite carryforward periods, and the remaining $68.0 million are subject to expiration between the years 2018 through 2025. Non-U.S. tax credit carryforwards at December 31, 2015 amounted to $0.9 million. Of these, $0.6 million have indefinite carryforward period, and the remaining are subject to expiration between the years 2018 and 2020.
In the U.S., there were approximately $86.3 million of federal net operating loss carryforwards (tax effected) subject to expiration in years beyond 2032, and $4.2 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2018 and 2035. U.S. tax credit carryforwards at December 31, 2015 amounted to $18.7 million subject to expiration between the years 2019 and 2035. U.S. interest carryforwards at December 31, 2015 of $16.8 million have an indefinite carryforward period. Utilization of our U.S. net operating loss and tax credit carryforwards may be subject to annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the net operating loss and tax credit carryforwards before their utilization.
At December 31, 2015, of the net operating loss, credit and interest carryforwards (tax-effected), $43.9 million was not benefited, as it related to the windfall tax benefit on share-based compensation that occurred in 2015 which did not reduce income taxes payable.  Upon adoption of ASU 2016-09, excess tax benefits relating to share-based compensation totaling $43.9 million that were previously not recognized were recorded on a modified retrospective basis through a cumulative-effect reclassification to retained earnings, thereby increasing the net operating loss carryforward at January 1, 2016 by $43.9 million.
Valuation allowances relate primarily to the increase in tax loss carryforwards in foreign jurisdictions where the Company does not believe the associated net deferred tax assets will be realized, due to expiration, limitation or insufficient future taxable income. A significant portion of the valuation allowance balances relates to the Company’s operations in Luxembourg and the Netherlands, which amount to $113.8 million and $110.1 million for years ended December 31, 2016 and December 31, 2015, respectively. In the Netherlands, the Company’s tax loss carryforwards have a nine-year carryforward period and are subject to expiration between years 2022 through 2025. In Luxembourg, the Company’s tax loss carryforwards have an indefinite carryforward period.
Total Gross Unrecognized Tax Benefits
 
Year Ended December 31,
 
2016
2015
2014
Balance at January 1
$
4.7

$
5.3

$
38.9

Increases related to acquisition
—

—

—

Increases related to positions taken on items from prior years
—

—

—

Decreases related to positions taken on items from prior years
(0.2
)
(0.6
)
(33.6
)
Increases related to positions taken in the current year
7.8

—

—

Settlement of uncertain tax positions with tax authorities
—

—

—

Decreases due to expiration of statutes of limitations
—

—

—

Balance at December 31
$
12.3

$
4.7

$
5.3


At December 31, 2016, 2015 and 2014, the total amount of gross unrecognized tax benefits was $12.3 million, $4.7 million and $5.3 million, of which $8.5 million, $4.7 million and $5.3 million would impact the effective tax rate, if recognized, respectively.
Interest and penalties associated with gross unrecognized tax benefits are included as components of the "Provision (benefit) for income taxes," and totaled an income tax expense of $0.3 million, $0.4 million and $6.8 million in 2016, 2015 and 2014, respectively. Accrued interest and penalties are included within the related tax liability line in the balance sheet. The Company’s accrual for interest and penalties at December 31, 2016, 2015 and 2014 was $1.1 million, $0.7 million and $0.3 million, respectively.
During 2014, resolution on two separate tax matters resulted in the adjustment of gross unrecognized tax benefits. In April 2014, documentation was secured to support tax deductions related to pre-acquisition activities. Additionally, in December 2014, the Company received affirmative guidance with respect to the treatment of certain 2013 charges. As a result, the Company believes it is more likely than not to sustain the position and adjusted the unrecognized tax benefits related to these matters, resulting in a tax benefit of $31.0 million (offset by an unfavorable change in the valuation allowance of $21.1 million).
The Company is subject to income tax in approximately 52 jurisdictions outside the U.S. The Company’s significant operations outside the U.S. are located in Belgium, China, Germany and Mexico. The statute of limitations varies by jurisdiction with 2006 being the oldest tax year still open in the material jurisdictions. The Company is currently under audit in certain jurisdictions for tax years under responsibility of the predecessor, as well as tax periods under the Company's ownership. Pursuant to the acquisition agreement, all tax liabilities related to tax years prior to 2013 acquisition will be indemnified by DuPont.
As of December 31, 2016, 2015 and 2014, we had gross unrecognized tax benefits of $13.4 million, $5.4 million and $5.6 million, respectively, including interest and penalties. Due to the high degree of uncertainty regarding future timing of cash flows associated with these liabilities, we are unable to estimate the years in which settlement will occur with the respective taxing authorities.
Earnings Per Common Share
Earnings 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. Potentially dilutive securities have been excluded in the weighted average number of common shares used for the calculation of net income per share in periods of net loss because the effect of such securities would be anti-dilutive. A reconciliation of our basic and diluted net income per common share is as follows:
 
Year Ended December 31,
(In millions, except per share data)
2016(1)
2015
2014
Net income to common shareholders
$
41.8

$
93.7

$
27.4

Basic weighted average shares outstanding
238.1

233.8

229.3

Diluted weighted average shares outstanding
244.4

239.7

230.3

Net income per common share:
 
 
 
Basic net income per share
$
0.18

$
0.40

$
0.12

Diluted net income per share
$
0.17

$
0.39

$
0.12


(1)Net income per common share for the year ended December 31, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 4 which increased diluted weighted average shares outstanding by 1.7 million shares.
The number of anti-dilutive shares that have been excluded in the computation of diluted net income per share for the years ended December 31, 2016, 2015 and 2014 were 1.3 million, 0.7 million and 7.2 million, respectively.
Basic and diluted weighted average shares outstanding have been adjusted to reflect the Company’s 1.69 for 1 stock split which occurred in October 2014.
Accounts and Notes Receivable, Net
Accounts and Notes Receivable, Net
ACCOUNTS AND NOTES RECEIVABLE, NET
 
Year Ended December 31,
 
2016
2015
Accounts receivable—trade, net
$
640.4

$
647.2

Notes receivable
68.7

43.0

Other
92.8

75.6

Total
$
801.9

$
765.8


Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $13.7 million and $10.7 million at December 31, 2016 and 2015, respectively. Bad debt expense was $3.4 million, $4.9 million and $5.1 million for the years ended December 31, 2016, 2015 and 2014, respectively.
Inventories
Inventories
INVENTORIES
 
Year Ended December 31,
 
2016
2015
Finished products
$
315.2

$
313.1

Semi-finished products
87.5

88.5

Raw materials and supplies
127.0

129.1

Total
$
529.7

$
530.7


Stores and supplies inventories of $20.2 million and $20.8 million at December 31, 2016 and 2015, respectively, were valued under the weighted average cost method.
Net Property, Plant and Equipment
Property, Plant and Equipment, Net
PROPERTY, PLANT AND EQUIPMENT, NET
Depreciation expense amounted to $176.8 million, $169.1 million and $176.6 million for the years ended December 31, 2016, 2015 and 2014, respectively.
 
 
 
 
Year Ended December 31,
 
Useful Lives (years)
2016
2015
Land
 
 
 
$
85.2

$
84.4

Buildings and improvements
5
-
25
454.0

423.5

Machinery and equipment
3
-
25
1,087.5

1,040.2

Software
5
-
7
139.7

132.1

Other
3
-
20
35.6

36.2

Construction in progress
 
 
 
131.0

138.9

Total
 
 
 
1,933.0

1,855.3

Accumulated depreciation
 
 
 
(617.3
)
(472.4
)
Property, plant and equipment, net
 
 
 
$
1,315.7

$
1,382.9

Other Assets
Other Assets
OTHER ASSETS
 
Year Ended December 31,
 
2016
2015
Available for sale securities
$
4.4

$
4.2

Deferred income taxes—non-current
314.1

272.6

Other assets
209.3

202.8

Total
$
527.8

$
479.6

Accounts Payable
Accounts Payable
ACCOUNTS PAYABLE
 
Year Ended December 31,
 
2016
2015
Trade payables
$
429.5

$
418.6

Non-income taxes
27.2

22.4

Other
17.5

13.7

Total
$
474.2

$
454.7

Other Accrued Liabilities
Other Accrued Liabilities
OTHER ACCRUED LIABILITIES
 
Year Ended December 31,
 
2016
2015
Compensation and other employee-related costs
$
145.8

$
140.0

Current portion of long-term employee benefit plans
10.1

11.2

Restructuring
66.1

41.3

Discounts, rebates, and warranties
97.4

74.8

Income taxes payable
23.3

18.8

Derivative liabilities
1.3

1.8

Other
73.6

82.3

Total
$
417.6

$
370.2

Borrowings
Borrowings
BORROWINGS
Borrowings are summarized as follows:
 
Year Ended December 31,
 
2016
2015
2020 Dollar Term Loans
$
—

$
2,042.5

2020 Euro Term Loans
—

428.0

2023 Dollar Term Loans
1,545.0

—

2023 Euro Term Loans
417.6

—

2021 Dollar Senior Notes
—

750.0

2021 Euro Senior Notes
—

274.4

2024 Dollar Senior Notes
500.0

—

2024 Euro Senior Notes
349.7

—

2025 Euro Senior Notes
469.8

—

Short-term and other borrowings
39.8

26.5

Unamortized original issue discount
(10.0
)
(14.0
)
Unamortized deferred financing costs
(48.0
)
(65.9
)
 
$
3,263.9

$
3,441.5

Less:
 
 
Short term borrowings
$
8.3

$
22.7

Current portion of long-term borrowings
19.6

27.4

Long-term debt
$
3,236.0

$
3,391.4


Senior Secured Credit Facilities, as amended
On February 3, 2014 (the "Second Amendment Effective Date"), Axalta Coating Systems Dutch B B.V., as "Dutch Borrower", and its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings Inc., as "U.S. Borrower", executed the second amendment to the Senior Secured Credit Facilities (the "Second Amendment"). The Second Amendment (i) converted all of the outstanding Dollar Term Loans ($2,282.8 million) into a new class of term loans (the "2020 Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans (€397.0 million) into a new class of term loans (the "2020 Euro Term Loans" and, together with the 2020 Dollar Term Loans (the "2020 Term Loans").
On December 15, 2016 (the "Fourth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fourth amendment to the Senior Secured Credit Facilities (the "Fourth Amendment"). The Fourth Amendment (i) converted all of the outstanding 2020 Dollar Term Loans ($1,775.3 million) into a new tranche of term loans issued at par with principal of $1,545.0 million (the "2023 Dollar Term Loans"), (ii) converted all of the outstanding 2020 Euro Term Loans (€199.0 million) into a new tranche of term loans issued at par with principal of €400.0 million (the "2023 Euro Term Loans" and, together with the 2023 Dollar Term Loans (the "2023 Term Loans") and the Revolving Credit Facility (as defined herein), the "Senior Secured Credit Facilities").
Interest was and is payable quarterly on both the 2020 Term Loans and 2023 Term Loans.
The 2023 Dollar Term Loans are subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such 2023 Dollar Term Loans is 2.50% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 1.50% per annum for Base Rate Loans as defined in the Credit Agreement. The 2023 Euro Term Loans are also subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such New Euro Term Loans is 2.25% per annum for Eurocurrency Rate Loans. The 2023 Euro Term Loans may not be Base Rate Loans.
Prior to the Fourth Amendment, interest on the 2020 Dollar Term Loans was subject to a floor of 1.00%, plus an applicable rate after the Second Amendment Effective Date. The applicable rate for such 2020 Dollar Term Loans was 3.00% per annum for Eurocurrency Rate Loans and 2.00% per annum for Base Rate Loans. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans was subject to a further 25 basis point reduction if the Total Net Leverage Ratio as defined in the Credit Agreement governing the Senior Secured Credit Facilities is less than or equal to 4.50:1.00. The 2020 Euro Term Loans were also subject to a floor of 1.00%, plus an applicable rate after the Second Amendment Effective Date. The applicable rate for such 2020 Euro Term Loans was 3.25% per annum for Eurocurrency Rate Loans. The 2020 Euro Term Loans were not to be Base Rate Loans. The applicable rate was subject to a further 25 basis point reduction if the Total Net Leverage Ratio was less than or equal to 4.50:1.00. During the third quarter of 2014, our Total Net Leverage Ratio was less than 4.50:1.00. Consequently, the applicable rates were changed to 2.75% for the 2020 Dollar Term Loans and 3.00% for the 2020 Euro Term Loans through the Fourth Amendment Effective Date.
Prior to the Second Amendment, interest on the Dollar Term Loans was subject to a floor of 1.25% for Eurocurrency Rate Loans plus an applicable rate of 3.50%. For Base Rate Loans, the interest was subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate, an Adjusted Eurocurrency Rate, or 2.25% plus an applicable rate of 2.50%. Interest on the Euro Term Loans, a Eurocurrency Loan, was subject to a floor of 1.25% plus an applicable rate of 4.00%.
Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $75.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow.
The Senior Secured Credit Facilities are secured by substantially all assets of Axalta Coating Systems Dutch A B. V. ("Dutch A B.V.") and the guarantors. The 2023 Dollar Term Loans and 2023 Euro Term Loans mature on February 1, 2023. Principal is paid quarterly on both the 2023 Dollar Term Loans and the 2023 Euro Term Loans based on 1% per annum of the original principal amount outstanding on the Fourth Amendment Effective Date with the unpaid balance due at maturity.
We are subject to customary negative covenants in addition to the First Lien Leverage Ratio financial covenant for purposes of determining any Excess Cash Flow mandatory payment. Further, the Senior Secured Credit Facilities, among other things, include customary restrictions (subject to certain exceptions) on the Company's ability to incur certain indebtedness, grant certain liens, make certain investments, declare or pay certain dividends, or repurchase shares of the Company's common stock. As of December 31, 2016, the Company is in compliance with all covenants under the Senior Secured Credit Facilities.
Revolving Credit Facility
On August 1, 2016 (the "Third Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the third amendment to the Senior Secured Credit Facilities (the "Third Amendment"). The Third Amendment impacted the Revolving Credit Facility by (i) extending the maturity of the Revolving Credit Facility to five years from the Third Amendment Effective Date, or August 1, 2021, provided that such date will be accelerated to the date that is 91 days prior to the maturity of the term loans borrowed under the Credit Agreement if the maturity of such term loans precedes the maturity of the Revolving Credit Facility, (ii) decreasing the applicable interest margins, and (iii) amending the financial covenant applicable to the Revolving Credit Facility to be applicable only when greater than 30% (previously 25%) of the Revolving Credit Facility (including letters of credit not cash collateralized to at least 103%) is outstanding at the end of the fiscal quarter. If such conditions are met, the First Lien Net Leverage Ratio (as defined by the Credit Agreement) at the end of the quarter is required to be greater than 5.50:1.00. At December 31, 2016, the financial covenant is not applicable as there were no borrowings.
Under the Third Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of 0.00% for Adjusted Eurocurrency Rate Loans (as defined in the Credit Agreement) plus an applicable rate of 2.75% (previously 3.50%) subject to an additional step-down to 2.50% or 2.25%, if the First Lien Net Leverage Ratio falls below 3.00:1.00 or 2.50:1.00, respectively. For Base Rate Loans, the interest is subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate or an Adjusted Eurocurrency Rate plus 1%, plus an applicable rate of 1.75% (previously 2.50%), subject to an additional step-down to 1.50% or 1.25%, if the First Lien Net Leverage Ratio falls below 3.00:1.00 and 2.50:1.00, respectively.
Under circumstances described in the Credit Agreement, we may increase available revolving or term facility borrowings by up to $400.0 million plus an additional amount subject to the Company not exceeding a maximum first lien leverage ratio described in the Credit Agreement.
There have been no borrowings outstanding on the Revolving Credit Facility since the issuance of the Senior Secured Credit Facilities. At December 31, 2016 and December 31, 2015, letters of credit issued under the Revolving Credit Facility totaled $21.3 million and $24.9 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $378.7 million and $375.1 million at December 31, 2016 and December 31, 2015, respectively.
Significant Transactions
In connection with the Third Amendment to the Credit Agreement discussed above, we recorded a loss on extinguishment for the year ended December 31, 2016 of $2.3 million.
In connection with the Fourth Amendment, we recorded a $10.4 million loss on extinguishment and other financing-related costs for the year ended December 31, 2016. The loss was comprised of the write-off of unamortized deferred financing costs and original issue discounts attributable to the 2020 Term Loans of $4.7 million and $1.5 million, respectively, and other fees directly associated with the Fourth Amendment of $4.2 million.
Prior to the December refinancing, in April and October of 2016, we voluntarily prepaid $100.0 million and $150.0 million in principal of the outstanding 2020 Dollar Term Loans, respectively, and €200.0 million in principal of the outstanding 2020 Euro Term Loans. As a result, we recorded losses on extinguishment for the year ended December 31, 2016 of $9.6 million, consisting of the write-off of $9.1 million and $0.5 million of unamortized deferred financing costs and original issue discounts, respectively.
During each of the years ended December 31, 2015 and 2014, we voluntarily prepaid $100.0 million of the outstanding 2020 Dollar Term Loans. For the year ended December 31, 2015, this action resulted in a loss on extinguishment of $2.5 million, consisting of the write-off of $1.8 million and $0.7 million of unamortized deferred financing costs and original issue discounts, respectively. For the year ended December 31, 2014, this action resulted in a loss on extinguishment of $3.0 million, consisting of the write-off of $2.2 million and $0.8 million of unamortized deferred financing costs and original issue discounts, respectively.
Significant Terms of the 2021 Senior Notes
On February 1, 2013, Dutch B B.V, as the “Dutch Issuer”, an indirect, wholly owned subsidiary of the Company, and Axalta US Holdings, as the “U.S. Issuer” (collectively the "Issuers") issued $750.0 million aggregate principal amount of 7.375% senior unsecured notes due 2021 (the "2021 Dollar Senior Notes") and related guarantees thereof. Additionally, the Issuers issued €250.0 million aggregate principal amount of 5.750% senior secured notes due 2021 (the "2021 Euro Senior Notes" and, together with the Dollar Senior Notes, the "2021 Senior Notes") and related guarantees thereof. The 2021 Senior Notes were unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries.
The indentures governing the 2021 Senior Notes contained covenants that restricted the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates.
Issuance of New Senior Notes and Redemption of 2021 Senior Notes
On August 16, 2016, Axalta Coating Systems, LLC ("New U.S. Issuer"), issued $500.0 million in aggregate principal amount of 4.875% Senior Unsecured Notes (the “2024 Dollar Senior Notes”) and €335.0 million in aggregate principal amount of 4.250% Senior Unsecured Notes (the “2024 Euro Senior Notes”), each due August 2024 (collectively the “2024 Senior Notes” and with the 2025 Euro Senior Notes, the “New Senior Notes”, each of which is described in detail below), for the primary purpose of redeeming the 2021 Dollar Senior Notes (the “August Refinancing”). Consistent with the terms of the 2021 Dollar Senior Notes, we extinguished the principal at a redemption price equal to 105.531%.
In connection with the August Refinancing, we recorded a $56.9 million loss on extinguishment and other financing-related costs for the year ended December 31, 2016. The loss was comprised of the redemption premium of $41.5 million, write-off of unamortized deferred financing costs attributable to the 2021 Dollar Senior Notes of $13.0 million and other fees directly associated with the transaction of $2.4 million.
The 2024 Senior Notes are fully and unconditionally guaranteed by Dutch B B.V., an indirect, wholly owned subsidiary of the Company (“Parent Guarantor”).
In addition, on September 27, 2016, the Dutch Issuer issued €450.0 million in aggregate principal amount of 3.750% Euro Senior Unsecured Notes due January 2025 (the “2025 Euro Senior Notes”) for the primary purpose of redeeming the 2021 Euro Senior Notes and the partial prepayment of the 2020 Euro Term Loans (the “September Refinancing”). Consistent with the original terms of the 2021 Euro Senior Notes, we extinguished the principal at a redemption price equal to 104.313%.
In connection with the September Refinancing, we recorded an $18.4 million loss on extinguishment and other financing-related costs for the year ended December 31, 2016. The loss was comprised of the redemption premium of $12.1 million, write-off of unamortized deferred financing costs attributable to the 2021 Euro Senior Notes of $5.6 million and other fees directly associated with the transaction of $0.7 million.
The indentures governing the New Senior Notes contain covenants that restrict the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates.
i) 2024 Dollar Senior Notes
The 2024 Dollar Senior Notes were issued at 99.951% of par, or $2.0 million discount, and are due August 15, 2024. The 2024 Dollar Senior Notes bear interest at 4.875% and are payable semi-annually on February 15 and August 15. We have the option to redeem all or part of the 2024 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated:
Period
2024 Dollar Notes Percentage
2019
103.656
%
2020
102.438
%
2021
101.219
%
2022 and thereafter
100.000
%

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

Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Euro Senior Notes) at a redemption price of 104.250% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.
Upon the occurrence of certain events constituting a change of control, holders of the 2024 Euro Senior Notes have the right to require us to repurchase all or any part of the 2024 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The 2024 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.
The indebtedness issued through the 2024 Euro Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
(iii) 2025 Euro Senior Notes
The 2025 Euro Senior Notes were issued at par and are due January 15, 2025. The 2025 Euro Senior Notes bear interest at 3.750% and are payable semi-annually on January 15 and July 15. We have the option to redeem all or part of the 2025 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after January 15 of the years indicated:
Period
2025 Euro 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 December 31, 2016.
2017
$
27.9

2018
21.3

2019
20.5

2020
20.4

2021
20.3

Thereafter
3,193.8

 
$
3,304.2


The table above excludes $17.7 million of debt associated with our build-to-suit lease arrangement and our sale-leaseback financing that will not be settled with cash.
Fair Value Accounting
Fair Value Accounting
FAIR VALUE ACCOUNTING
Assets measured at fair value on a non-recurring basis
During the years ended December 31, 2015 and 2014 we recorded impairment losses of $0.1 million and $0.1 million, respectively, associated with the abandonment of certain in process research and development projects. There were no impairment losses recorded during the year ended December 31, 2016.
During the years ended December 31, 2016 and 2015, we recorded impairment losses of $10.5 million and $30.6 million, respectively, at our Venezuelan subsidiary to write down the carrying value of a real estate investment to its fair value. Additionally, during the year ended December 31, 2016, we recorded an impairment loss of $57.9 million on our productive long-lived assets with associated with our Venezuela operations. No impairments were recorded during the year ended December 31, 2014.
Fair value of financial instruments
Available for sale securities - The fair values of available for sale securities at December 31, 2016 and 2015 were $4.4 million and $4.2 million, respectively. The fair value was based upon either Level 1 inputs when the securities are actively traded with quoted market prices or Level 2 when the securities are not frequently traded.
Long-term borrowings - The fair values of the 2024 Dollar Senior Notes, 2024 Euro Senior Notes and 2025 Euro Senior Notes at December 31, 2016 were $500.0 million, $363.8 million and $472.2 million, respectively. The fair values of the 2021 Dollar Senior Notes and 2021 Euro Senior Notes at December 31, 2015 were $787.5 million and $285.4 million, respectively. The estimated fair values of these notes are based on recent trades and current trending. Due to the infrequency of trades of these notes, these inputs are considered to be Level 2 inputs.
The fair values of the 2023 Dollar Term Loans and the 2023 Euro Term Loans at December 31, 2016 were $1,560.5 million and $421.8 million, respectively. The fair values of the 2020 Dollar Term Loans and the 2020 Euro Term Loans at December 31, 2015 were $2,024.6 million and $427.5 million, respectively. The estimated fair values of the 2023 Dollar Term Loans and the 2023 Euro Term Loans are based on recent trades, as reported by a third party pricing service. Due to the infrequency of trades of the 2023 Dollar Term Loans and the 2023 Euro Term Loans, these inputs are considered to be Level 2 inputs.
Fair value of contingent consideration
During the year ended December 31, 2016, we recorded the fair value of contingent consideration associated with certain of our acquisitions based on the terms of the applicable targets described within the acquisition agreements. The fair value of these liabilities are valued at each balance sheet date with adjustments recorded within selling, general and administrative expenses on the consolidated statement of operations. The fair value of contingent consideration at December 31, 2016 was $10.0 million, which included adjustments recorded to earnings based on changes to the fair value of $0.8 million for the year ended December 31, 2016.
Derivative Financial Instruments
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs.
During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps are in place until September 29, 2017. The interest rate swaps qualify and are designated as effective cash flow hedges.
The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in the accompanying consolidated balance sheet:
 
Year Ended December 31,
 
2016
2015
Prepaid and other assets:
 
 
Interest rate swaps
$
0.1

$
0.4

Total assets
$
0.1

$
0.4

Other accrued liabilities:
 
 
Interest rate swaps
$
0.8

$
—

Other liabilities:
 
 
Interest rate swaps
$
—

$
1.8

Total liabilities
$
0.8

$
1.8


We periodically enter into foreign currency forward and option contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other expense, net in the consolidated statement of operations.
The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our consolidated balance sheet:
 
Year Ended December 31,
 
2016
2015
Prepaid and other assets:
 
 
Foreign currency contracts
$
0.1

$
0.3

Total assets
$
0.1

$
0.3

Other accrued liabilities:
 
 
Foreign currency contracts
$
0.5

$
—

Total liabilities:
0.5

—


For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.
The following table sets forth the locations and amounts recognized during the years ended December 31, 2016, 2015, and 2014 respectively, for these cash flow hedges.
Derivatives in Cash Flow Hedging
Relationships in 2016:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gains) Losses 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
2.0

Interest expense, net
$
5.9

Interest expense, net
$
1.2

Derivatives in Cash Flow Hedging Relationships in 2015:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gain) Loss 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
5.5

Interest expense, net
$
6.5

Interest expense, net
$
0.4

Derivatives in Cash Flow Hedging Relationships in 2014:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gain) Loss 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
4.6

Interest expense, net
$
6.5

Interest expense, net
$
0.3


Also during the year ended December 31, 2013, we purchased a €300.0 million 1.5% interest rate cap on our Euro Term Loans that is in place until September 29, 2017. We paid a premium of $3.1 million for the interest rate cap. The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.
Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows:
Derivatives Not Designated as
Hedging Instruments under
ASC 815
Location of (Gain) Loss
Recognized in Income on
Derivatives
Year Ended December 31, 2016
Year Ended December 31, 2015
Year Ended December 31, 2014
Foreign currency forward contracts
Other expense, net
$
4.3

$
(5.6
)
$
1.4

Interest rate cap
Interest expense, net
—

0.1

3.4

 
 
$
4.3

$
(5.5
)
$
4.8

Segments
Segments
SEGMENTS
The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information.
We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. 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: 
 
Year Ended December 31,
 
2016
2015
2014
Performance Coatings
 
 
 
Refinish
$
1,684.4

$
1,702.0

$
1,850.8

Industrial
718.8

683.1

734.2

Total Net sales Performance Coatings
2,403.2

2,385.1

2,585.0

Transportation Coatings
 
 
 
Light Vehicle
1,337.7

1,310.6

1,384.5

Commercial Vehicle
332.6

391.5

392.2

Total Net sales Transportation Coatings
1,670.3

1,702.1

1,776.7

Total Net sales
$
4,073.5

$
4,087.2

$
4,361.7


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 Year ended December 31, 2016
 
 
 
Net sales (1)
$
2,403.2

$
1,670.3

$
4,073.5

Equity in earnings in unconsolidated affiliates
(0.2
)
0.4

0.2

Adjusted EBITDA (2)
554.4

352.7

907.1

Investment in unconsolidated affiliates
2.5

11.1

13.6

 
Performance
Coatings
Transportation
Coatings
Total
For the Year ended December 31, 2015
 
 
 
Net sales (1)
$
2,385.1

$
1,702.1

$
4,087.2

Equity in earnings in unconsolidated affiliates
0.6

0.6

1.2

Adjusted EBITDA (2)
539.1

328.1

867.2

Investment in unconsolidated affiliates
4.0

8.4

12.4

 
Performance
Coatings
Transportation
Coatings
Total
For the Year ended December 31, 2014
 
 
 
Net sales (1)
$
2,585.0

$
1,776.7

$
4,361.7

Equity in losses in unconsolidated affiliates
(1.2
)
(0.2
)
(1.4
)
Adjusted EBITDA (2)
547.6

292.9

840.5

Investment in unconsolidated affiliates
7.2

7.1

14.3

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows:
 
Year Ended December 31,
 
2016
2015
2014
Income before income taxes
$
87.4

$
161.2

$
36.8

Interest expense, net
178.2

196.5

217.7

Depreciation and amortization
322.1

307.7

308.7

EBITDA
587.7

665.4

563.2

Debt extinguishment and refinancing related costs (a)
97.6

2.5

6.1

Foreign exchange remeasurement losses (b)
30.6

93.7

81.2

Long-term employee benefit plan adjustments (c)
1.5

(0.3
)
(0.6
)
Termination benefits and other employee related costs (d)
61.8

36.6

18.4

Consulting and advisory fees (e)
10.4

23.9

36.3

Transition-related costs (f)
—

(3.4
)
101.8

Offering and transactional costs (g)
6.0

(1.5
)
22.3

Stock-based compensation (h)
41.1

30.2

8.0

Other adjustments (i)
5.0

(5.8
)
6.0

Dividends in respect of noncontrolling interest (j)
(3.0
)
(4.7
)
(2.2
)
Asset impairments (k)
68.4

30.6

—

Adjusted EBITDA
$
907.1

$
867.2

$
840.5

(a)
During the years ended December 31, 2016, 2015 and 2014 we prepaid principal on our term loans, resulting in non-cash losses on extinguishment of $9.6 million, $2.5 million and $3.0 million, respectively. During the years ended December 31, 2016 and 2014 we amended our Credit Agreement and refinanced our indebtedness, resulting in additional losses of $88.0 million and $3.1 million, respectively. We do not consider these items to be indicative of our ongoing operating performance.
(b)
Eliminates foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $23.5 million, $51.5 million, and gains of $11.9 million for the years ended December 31, 2016, 2015 and 2014, respectively.
(c)
Eliminates the non-cash non-service components of long-term employee benefit costs (discussed further at Note 9).
(d)
Represents expenses primarily related to employee termination benefits including our initiative to improve the overall cost structure within the European region as well as costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. In 2014, termination benefits include the costs associated with our headcount initiatives for establishment of new roles and elimination of old roles and other employee costs associated with cost-saving opportunities that were related to our transition to a standalone entity.
(e)
Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. Amounts incurred during 2014 relate to services rendered in conjunction with our transition to a standalone entity.
(f)
Represents charges and a change in estimate associated with the transition costs from DuPont to a standalone entity, including certain Acquisition indemnities. We do not consider these items to be indicative of our ongoing operating performance.
(g)
Represents costs associated with the offerings of our common shares by Carlyle, including the November 2014 IPO, and acquisition-related expenses, including changes in the fair value of contingent consideration, all of which are not considered indicative of our ongoing operating performance.
(h)
Represents non-cash costs associated with stock-based compensation, including $8.2 million of expense during the year ended December 31, 2015 attributable to the accelerated vesting of all issued and outstanding stock options issued under the 2013 Plan as a result of the Change in Control.
(i)
Represents costs for 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 equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments, Carlyle management fees incurred prior to the Change in Control and non-cash fair value inventory adjustments associated with our business combinations.
(j)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
(k)
As a result of currency devaluations in Venezuela, we recorded non-cash impairment charges relating to a real estate investment of $10.5 million and $30.6 million during the years ended December 31, 2016 and 2015, respectively. Additionally, during the year ended December 31, 2016, we recorded a $57.9 million non-cash impairment on long-lived assets associated with our Venezuela operations (discussed further at Note 26). We do not consider these impairments to be indicative of our ongoing operating performance.
Geographic Area Information:
The information within the following tables provides disaggregated information related to our net sales and long-lived assets.
Net sales by region were as follows:
 
Year Ended December 31,
 
2016
2015
2014
North America
$
1,431.4

$
1,371.9

$
1,307.8

EMEA
1,455.3

1,425.3

1,672.0

Asia Pacific
723.9

717.4

715.0

Latin America
462.9

572.6

666.9

Total (a)
$
4,073.5

$
4,087.2

$
4,361.7

Net long-lived assets by region were as follows:
 
Year Ended December 31,
 
2016
2015
North America
$
419.3

$
449.1

EMEA
456.9

493.2

Asia Pacific
248.0

234.5

Latin America
191.5

206.1

Total (b)
$
1,315.7

$
1,382.9

(a)
Net Sales are attributed to countries based on location of the customer. Sales to external customers in China represented approximately 13%, 13% and 11% of the total for the years ended December 31, 2016, 2015 and 2014, respectively. Sales to external customers in Germany represented approximately 9%, 9% and 10% of the total for the years ended December 31, 2016, 2015 and 2014, respectively. Mexico represented 6% of the total for the years ended December 31, 2016, 2015 and 2014. Canada, which is included in the North America region, represents approximately 4% of total net sales for the year ended December 31, 2016 and 3% for the years ended December 31, 2015 and 2014.
(b)
Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $262.2 million and $280.4 million in the years ended December 31, 2016 and 2015, respectively. China long-lived assets amounted to $204.0 million and $194.7 million in the years ended December 31, 2016 and 2015, respectively. Brazil long-lived assets amounted to approximately $94.9 million and $88.5 million in the years ended December 31, 2016 and 2015, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $20.0 million and $20.7 million in the years ended December 31, 2016 and 2015, respectively.
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Gain (Loss) on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income
Balance, December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

$
(3.2
)
$
(269.3
)
Current year deferrals to AOCI
(59.4
)
(22.3
)
0.3

(2.5
)
(83.9
)
Reclassifications from AOCI to Net income
—

(0.9
)
—

3.7

2.8

Net Change
(59.4
)
(23.2
)
0.3

1.2

(81.1
)
Balance, December 31, 2016
$
(292.2
)
$
(56.6
)
$
0.4

$
(2.0
)
$
(350.4
)

The cumulative income tax benefit related to the adjustments for pension benefits at December 31, 2016 was $19.1 million. The cumulative income tax benefit related to the adjustments for unrealized gain on derivatives at December 31, 2016 was $1.1 million.
 
Unrealized
Currency
Translation
Adjustments
Pension and
Other
Long-term
Employee
Benefit
Adjustments
Unrealized
Gain (Loss) on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income
Balance, December 31, 2014
$
(72.1
)
$
(31.2
)
$
(0.2
)
$
0.2

$
(103.3
)
Current year deferrals to AOCI
(160.7
)
(4.3
)
0.3

0.6

(164.1
)
Reclassifications from AOCI to Net income
—

2.1

—

(4.0
)
(1.9
)
Net Change
(160.7
)
(2.2
)
0.3

(3.4
)
(166.0
)
Balance, December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

$
(3.2
)
$
(269.3
)
The cumulative income tax benefit related to the adjustments for pension and other long-term employee benefits at December 31, 2015 was $13.4 million. The cumulative income tax benefit related to the adjustments for unrealized gain on derivatives at December 31, 2015 was $1.9 million.
 
Unrealized
Currency
Translation
Adjustments
Pension and
Other
Long-term
Employee
Benefit
Adjustments
Unrealized
Gain (Loss) on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income
Balance, December 31, 2013
$
24.3

$
7.5

$
(0.9
)
$
3.1

$
34.0

Current year deferrals to AOCI
(96.4
)
(29.7
)
0.7

3.6

(121.8
)
Reclassifications from AOCI to Net income
—

(9.0
)
—

(6.5
)
(15.5
)
Net Change
(96.4
)
(38.7
)
0.7

(2.9
)
(137.3
)
Balance, December 31, 2014
$
(72.1
)
$
(31.2
)
$
(0.2
)
$
0.2

$
(103.3
)

Included within reclassifications from AOCI to Net income for the year ended December 31, 2014 was $7.3 million of curtailment gains related to an amendment to one of our pension plans. The cumulative income tax benefit related to the adjustments for pension and other long-term employee benefits at December 31, 2014 was $13.4 million. The cumulative income tax expense related to the adjustments for unrealized gain on derivatives at December 31, 2014 were $0.2 million.
Venezuela
Venezuela
VENEZUELA
Currency Devaluation
As a result of challenging economic conditions and changes to Venezuela’s foreign currency exchange mechanisms our Venezuela operations have continued to be impacted.
Based on our participation in Venezuela’s Complementary System of Foreign Currency Administration (SICAD I) auction process during the year ended December 31, 2014, we changed the exchange rate we used to remeasure our Venezuelan subsidiary’s bolivar denominated monetary assets and liabilities into U.S. dollars to an exchange rate of 12.0 Venezuelan bolivars to 1.0 U.S. dollar at December 31, 2014 from the Official Rate of 6.3 Venezuelan bolivars to 1.0 U.S. dollar.
From December 31, 2014 through June 30, 2015, we used the SICAD rate of 12.0 Venezuelan bolivars to 1.0 U.S. dollar. At June 30, 2015, we changed the exchange rate we used to remeasure our Venezuelan bolivars from the SICAD rate to the Marginal Foreign Exchange System (SIMADI) rate of 197.7 Venezuelan bolivars to 1.0 U.S. dollar. We believed it was appropriate to move from using the SICAD rate to using the SIMADI rate based on the culmination of relevant facts and circumstances, including our expectation that future dividend remittances would be made at the SIMADI rate.
In March 2016, the Venezuelan government enacted additional changes to its foreign currency exchange regime. The changes resulted in a reduction of its three-tiered exchange rate system to two tiers by eliminating the SICAD rate. The changes also devalued the official rate, DIPRO (formerly CENCOEX), to 10.0 Venezuelan bolivars to 1.0 U.S. dollar from 6.3 Venezuelan bolivars to 1.0 U.S. dollar, while also creating a replacement floating supplementary market exchange rate, DICOM, which fully replaced SIMADI. DICOM is intended to provide limited access to a free market rate of exchange and the rate utilized to remeasure the monetary assets and liabilities of our operations as our subsidiary is a U.S. dollar functional entity. At December 31, 2016, DICOM was 673.8 Venezuelan bolivars to 1.0 U.S. dollar.
We believe that significant uncertainty still exists regarding the exchange mechanisms in Venezuela, including how any such mechanisms will operate in the future and the availability of U.S. dollars under each mechanism.
The devaluations of the exchange rates for the year ended December 31, 2014 resulted in net gains of $17.0 million primarily due to our determination at December 31, 2014 to change from the CENCOEX rate to SICAD I and our Venezuelan operations being in a net monetary liability position.
Primarily as a result of the devalued Venezuelan bolivar, we recorded currency exchange losses of $23.5 million and $51.5 million for the years ended December 31, 2016 and 2015, respectively. Included in the loss for the year ended December 31, 2015 was a loss of $53.2 million resulting from the devaluation caused by the change in exchange mechanism used at June 30, 2015.
Venezuela Financial Results and Impairment Considerations
As a result of the continued economic uncertainty, negative volume trends including fourth quarter 2016 performance, further deterioration in the economy as evidenced by the dramatic devaluation in the unofficial parallel exchange markets and the completion of our 2017 budget process which highlighted a material decline in our profitability, we concluded there was a formal triggering event to assess the carrying value of our long-lived assets during the fourth quarter of 2016. Based on the internal projections developed by management, the Company determined that the undiscounted future cash flows expected to result from the use of our productive long-lived assets were not sufficient to recover the carrying value. A third-party valuation of our Venezuelan operations was performed as of December 1, 2016 to assist management in determining the fair value utilizing standard valuation approaches, which incorporated Level 3 inputs. Based on the results of the valuations, the Company recorded an impairment charge of $57.9 million in the fourth quarter of 2016, comprised of a $49.3 million write-down to customer relationship intangibles and an $8.6 million write-down to the net book value of our property, plant and equipment. The impairment charge was recorded within income from operations on the consolidated statement of operations, with $30.6 million and $27.3 million allocated to our Performance Coatings and Transportation Coatings operating segments, respectively.
With the exception of intercompany inventory purchases, our operations in Venezuela were and are expected to continue to be self-funded. Our Venezuelan operations continue to have the ability to procure raw materials through Axalta subsidiaries, and generate positive cash flow sufficient to fund its operations even with our lower projected results for Venezuela. As a result, we currently do not foresee any material impact on our Venezuelan subsidiary's ability to continue to operate. We have no current need or intention to repatriate Venezuelan earnings and remain committed to the business for the foreseeable future based on our current expectations.
If assumptions regarding our continued demand and ability to successfully implement and sustain price increases differ from actual results, or our ability to control the operations of our Venezuelan subsidiary change as a result of economic uncertainty or political instability, there is a risk that our productive long-lived assets may be further impaired. Additionally, if DICOM continues to weaken, this could result in a material unfavorable impact on our results of operations and financial condition.
At June 30, 2016, we performed a separate evaluation of the carrying value of our non-operating real estate investment. Based on this evaluation, we concluded that the carrying value of the real estate investment of $21.5 million was impaired as a result of the current real estate market prices and movement of our translation rate from 270.5 Venezuelan bolivars to 1.0 U.S. dollar at March 31, 2016 to 626.0 Venezuelan bolivars to 1.0 U.S. dollar at June 30, 2016. At December 31, 2016, we re-assessed the carrying value of our non-operating real estate investment. Based on the third-party valuation performed, we concluded that the carrying value of the real estate investment of $10.9 million was not impaired.
Impairments of $10.5 million and $30.6 million were recorded within other expense, net for the years ended December 31, 2016 and 2015, respectively. The method used to determine fair values of the real estate investment included using Level 2 inputs in the form of observable market quotes from local real estate broker service firms.
At December 31, 2016 and 2015, our Venezuelan subsidiary had total assets of $82.7 million and $152.9 million, respectively, and total liabilities of $42.3 million and $42.2 million, respectively. Total liabilities include $32.8 million and $25.9 million of intercompany trade liabilities designated in U.S. dollars as of December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, total non-monetary assets, net, were $34.8 million and $112.4 million, respectively.
For the years ended December 31, 2016, 2015 and 2014, our Venezuelan subsidiary's net sales represented $50.8 million, $131.2 million and $136.5 million of our consolidated net sales, respectively. For the years ended December 31, 2016, 2015 and 2014, our Venezuelan subsidiary represented a loss of $36.5 million, income of $63.0 million and $60.0 million of our consolidated income from operations, respectively. For the years ended December 31, 2016, 2015 and 2014, our Venezuelan subsidiary represented net losses of $68.5 million and $32.0 million and net income of $52.6 million of our consolidated net income, respectively.
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
The following is a summary of the quarterly results of operations for the years ended December 31, 2016 and 2015, respectively (in millions, except per share data):
2016(1)
March 31
June 30(2)
September 30
December 31(3)
Full Year
Total revenue
$
961.6

$
1,072.1

$
1,029.1

$
1,034.6

$
4,097.4

Cost of goods sold
606.4

649.0

630.4

641.8

2,527.6

Net income (loss)
31.8

53.3

(3.1
)
(34.4
)
47.6

Net income (loss) attributable to controlling interests
30.9

51.7

(4.3
)
(36.5
)
41.8

Basic net income (loss) per share
0.13

0.22

(0.02
)
(0.15
)
0.18

Diluted net income (loss) per share
0.13

0.21

(0.02
)
(0.15
)
0.17

 
 
 
 
 
 
2015
March 31
June 30(a)
September 30
December 31
Full Year
Total revenue
$
997.5

$
1,101.1

$
1,005.1

$
1,009.6

$
4,113.3

Cost of goods sold
649.8

679.7

628.6

639.2

2,597.3

Net income (loss)
46.7

(24.3
)
36.4

39.1

97.9

Net income (loss) attributable to controlling interests
45.1

(25.1
)
35.1

38.6

93.7

Basic net income (loss) per share
0.20

(0.11
)
0.15

0.16

0.40

Diluted net income (loss) per share
0.19

(0.11
)
0.15

0.16

0.39

 
 
 
 
 
 
(1) The table above includes the impacts of our adoption of ASU 2016-09 which, as previously discussed in Note 4, provides for a benefit to net income and an increase in diluted shares used in the calculation of diluted net income per share. Previously disclosed net income (loss) was $29.7 million, $48.5 million and $(10.7) million for the three months ended March 31, 2016, June 30, 2016 and September 30, 2016, respectively. Previously disclosed diluted net income (loss) per share was $0.12, $0.20 and ($0.04) for the three months ended March 31, 2016, June 30, 2016 and September 30, 2016, respectively.
(2) During the three months ended June 30, 2016 and 2015, the Company recorded an impairment charge of $10.5 million and $30.6 million, respectively, based on our evaluation of the carrying value associated with our real estate investment in Venezuela. See further discussion in Note 26.
(3) During the three months ended December 31, 2016, the Company recorded an impairment charge of $57.9 million, based on our evaluation of the carrying value associated with our long-lived operating assets in Venezuela. See further discussion in Note 26. Also during the three months ended December 31, 2016, we recorded restructuring costs associated with our Axalta Way initiatives for $36.6 million.
Schedule II
Schedule II - Valuation and Qualifying Accounts
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS 
Allowance for Doubtful Accounts for the years ended December 31:
(in millions)
Balance at Beginning of Year
Additions
Deductions(1)
Balance at End of Year
2016
$
10.7

3.4

(0.4
)
$
13.7

2015
9.9

4.9

(4.1
)
10.7

2014
$
6.5

5.1

(1.7
)
$
9.9

(1)
Deductions include uncollectible accounts written off and foreign currency translation impact.

Deferred tax asset valuation allowances for the years ended December 31:
(in millions)
Balance at Beginning of Year
Additions
Deductions(1)
Balance at End of Year
2016
$
127.8

9.6

(2.0
)
$
135.4

2015
101.9

34.4

(8.5
)
127.8

2014
$
63.4

44.4

(5.9
)
$
101.9

(1)
Deductions include charges to goodwill and foreign currency translation impact.
Summary of Significant Accounting Policies (Policies)
Basis of Accounting, Policy 
The consolidated financial statements of Axalta and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included.
Use of Estimates, Policy 
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. The estimates and assumptions include, but are not limited to, receivable and inventory valuations, fixed asset valuations, valuations of goodwill and identifiable intangible assets, including analysis of impairment, valuations of long-term employee benefit obligations, income taxes, environmental matters, litigation, stock-based compensation, restructuring, and allocations of costs. Our estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. Actual results could differ materially from those estimates.
Business Combinations Policy 
Accounting for Business Combinations
We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets, including separately identifiable intangible assets and assumed liabilities at their acquisition date fair values. The method records any excess purchase price over the fair value of acquired net assets as goodwill. Included in the determination of the purchase price is the fair value of contingent consideration, if applicable, based on the terms and applicable targets described within the acquisition agreements (e.g., projected revenues or EBITDA). Subsequent to the acquisition date, the fair value of the liability, if determined to be payable in cash, is revalued at each balance sheet date with adjustments recorded within earnings.
The determination of the fair value of assets acquired, liabilities assumed, and noncontrolling interests involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the closing date of the acquisition. When necessary, we consult with external advisors to help determine fair value. For non-observable market values determined using Level 3 assumptions, we determine fair value using acceptable valuation principles (e.g., multiple excess earnings, relief from royalty and cost methods).
We included the results of operations from the acquisition date in the financial statements for all businesses acquired.
Consolidation, Policy 
Principles of Consolidation
The consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which Axalta, directly or indirectly, owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, Axalta’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statements of operations and our share of these companies’ stockholders’ equity is included in the accompanying consolidated balance sheet.
We eliminated all intercompany accounts and transactions in the preparation of the accompanying consolidated financial statements.
Revenue Recognition, Policy 
Revenue Recognition
We recognize revenue after completing the earnings process. We recognize revenue for product sales when we ship products to the customer in accordance with the terms of the agreement, when there is persuasive evidence of the arrangement, title and risk of loss have been transferred, collectability is reasonably assured and pricing is fixed or determinable.
For a majority of our product sales, title transfers at the shipping point and delivery is considered complete. For certain OEM customers, revenue is recognized at the time the customer applies our coatings to its vehicles, as this represents the point in time that risk of loss has been transferred and delivery is considered complete.
We accrue for sales returns and other allowances based on our historical experience.
We incur up-front costs in order to obtain contracts with certain customers, referred to as Business Incentive Plan assets ("BIPs"). We capitalized these up-front costs as a component of other assets and amortize the related amounts over the estimated life of the contract 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.  As of December 31, 2016 and 2015, $170.8 million and $147.3 million, respectively, were deferred within other assets on the consolidated balance sheets. For the years ended December 31, 2016, 2015 and 2014, $53.5 million, $50.6 million and $43.0 million, respectively, were recorded as reductions of net sales in the consolidated statement of operations.
We include the amounts billed to customers for shipping and handling fees in net sales and costs incurred for the delivery of goods as cost of goods sold in the statement of operations.
Recognition for licensing and royalty income occurs in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured.
Cash and Cash Equivalents, Policy 
Cash and Cash Equivalents
Cash equivalents represent highly liquid investments considered readily convertible to known amounts of cash within three months or less from time of purchase. They are carried at cost plus accrued interest, which approximates fair value because of the short-term maturity of these instruments. Cash balances may exceed government insured limits in certain jurisdictions.
Fair Value Measurement, Policy 
Fair Value Measurements
GAAP defines a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
The following valuation techniques are used to measure fair value for assets and liabilities:
Level 1—Quoted market prices in active markets for identical assets or liabilities;
Level 2—Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and
Level 3—Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability.
Derivatives, Policy 
Derivatives and Hedging
The Company from time to time utilizes derivatives to manage exposures to currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or accumulated other comprehensive income ("AOCI"), depending on the use of the derivative and whether it qualifies for hedge accounting treatment and is designated as such.
Gains and losses on derivatives that qualify and are designated as cash flow hedging instruments are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income.
Gains and losses on derivatives qualifying and designated as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income.
Cash flows from derivatives are recognized in the consolidated statements of cash flows in a manner consistent with the underlying transactions.
Receivables, Policy 
Receivables and Allowance for Doubtful Accounts
Receivables are recognized net of an allowance for doubtful accounts receivable. The allowance for doubtful accounts receivable reflects the best estimate of losses inherent in the accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written down or off when a portion or all of such account receivable is determined to be uncollectible.
Inventory, Policy 
Inventories
Inventories are valued at the lower of cost or net realizable value with cost being determined on the weighted average cost method. Elements of cost in inventories include:
•
raw materials,
•
direct labor, and
•
manufacturing and indirect overhead.
Stores and supplies are valued at the lower of cost or net realizable value; cost is generally determined by the weighted average cost method. Inventories deemed to have costs greater than their respective market values are reduced to net realizable value with a loss recorded in income in the period recognized.
Property, Plant and Equipment, Policy 
Property, Plant and Equipment
Property, plant and equipment acquired in an acquisition are recorded at fair value as of the acquisition date and are depreciated over the estimated useful life using the straight-line method. Subsequent additions to property, plant and equipment, including the fair value of any asset retirement obligations upon initial recognition of the liability, are recorded at cost and are depreciated over the estimated useful life using the straight-line method. See Note 17 for a range of estimated useful lives used for each property, plant and equipment class.
Software included in property, plant and equipment represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance and training costs are expensed in the period in which they are incurred.
Goodwill and Intangible Assets, Policy 
Goodwill and Other Identifiable Intangible Assets
Goodwill represents the excess of purchase price over the fair values of underlying net assets acquired in an acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis as of October 1; however, these tests are performed more frequently if events or changes in circumstances indicate that the asset may be impaired. The fair value methodology is based on prices of similar assets or other valuation methodologies including discounted cash flow techniques.
When testing goodwill and indefinite-lived intangible assets for impairment, we first have an option to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that an impairment exists. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. In the event the qualitative assessment indicates that an impairment is more likely than not, we would be required to perform a quantitative impairment test, otherwise no further analysis is required.
Under the quantitative goodwill impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, then individual assets (including identifiable intangible assets) and liabilities of the reporting unit are estimated at fair value. The excess of the estimated fair value of the reporting unit over the estimated fair value of its net assets would establish the implied value of goodwill. The excess of the recorded amount of goodwill over the implied value is then charged to earnings as an impairment loss.
Definite-lived intangible assets, such as technology, trademarks, customer relationships and non-compete agreements are amortized over their estimated useful lives, generally for periods ranging from two to 20 years. The reasonableness of the useful lives of these assets is regularly evaluated. Once these assets are fully amortized, they are removed from the balance sheet. We evaluate these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable.
Impairment or Disposal of Long-Lived Assets, Policy 
Impairment of Long-Lived Assets
The carrying value of long-lived assets to be held and used is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the asset are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The fair value methodology used is an estimate of fair market value and is based on prices of similar assets or other valuation methodologies including present value techniques. Long-lived assets to be disposed of other than by sale are classified as held for use until their disposal. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived assets classified as held for sale.
Research, Development, and Computer Software, Policy 
Research and Development
Research and development costs incurred in the normal course of business consist primarily of employee-related costs and are expensed as incurred. In process research and development projects acquired in a business combination are recorded as intangible assets at their fair value as of the acquisition date, using Level 3 assumptions. Subsequent costs related to acquired in process research and development projects are expensed as incurred. Research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. These indefinite-lived intangible assets are tested for impairment consistent with the impairment testing performed on other indefinite-lived intangible assets discussed above. Upon completion of the research and development process, the carrying value of acquired in process research and development projects is reclassified as a finite-lived asset and is amortized over its useful life.
Environmental Costs, Policy 
Environmental Liabilities and Expenditures
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued environmental liabilities are not discounted. Claims for recovery from third parties, if any, are reflected separately as an asset. We record recoveries at the earlier of when the gain is probable and reasonably estimable, or realized. For the years ending December 31, 2016, 2015 and 2014, we have not recognized income associated with recoveries from third parties.
Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized and depreciated.
Commitments and Contingencies, Policy 
Litigation
We accrue for liabilities related to litigation matters when available information indicates that the liability is probable and the amount can be reasonably estimated. Legal costs such as outside counsel fees and expenses are charged to expense in the period incurred.
Income Tax, Policy 
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for operating losses, interest and tax credit carry forwards. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income in the period that includes the enactment date.
Where we do not intend to indefinitely reinvest earnings of our subsidiaries, we provide for income taxes and withholding taxes, where applicable, on unremitted earnings. We do not provide for income taxes on unremitted earnings of our subsidiaries that are intended to be indefinitely reinvested.
We recognize the benefit of an income tax position only if it is "more likely than not" that the tax position will be sustained. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized. Additionally, we recognize interest and penalties accrued related to unrecognized tax benefits as a component of provision for income taxes. The current portion of unrecognized tax benefits is included in "Income taxes payable" and the long-term portion is included in the long-term income tax payable in the accompanying consolidated balance sheets.
Foreign Currency Transactions and Translations Policy 
Foreign Currency Translation
The reporting currency is the U.S. dollar. In most cases, our non-U.S. based subsidiaries use their local currency as the functional currency for their respective business operations. Assets and liabilities of these operations are translated into U.S. dollars at end-of-period exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Resulting cumulative translation adjustments are recorded as a component of shareholders’ equity in the accompanying consolidated balance sheet in Accumulated other comprehensive income (loss).
Gains and losses from transactions denominated in currencies other than the functional currencies are included in the consolidated statement of operations in other expense, net.
Pension and Other Postretirement Plans, Pensions, Policy 
Employee Benefits
Defined benefit plans specify an amount of pension benefit that an employee will receive upon retirement, usually dependent on factors such as age, years of service and compensation. The net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of the future benefits that employees have earned in return for their service in the current and prior periods. These benefits are then discounted to determine the present value of the obligations and are then adjusted for the impact of any unamortized prior service costs. The discount rate used is based upon market indicators in the region (generally, the yield on bonds that are denominated in the currency in which the benefits will be paid) and that have maturity dates approximating the terms of the obligations. The calculations are performed by qualified actuaries using the projected unit credit method.
Share-based Compensation, Option and Incentive Plans Policy 
Stock-Based Compensation
Our stock-based compensation is comprised of Axalta stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units and are measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a graded-vesting attribution basis over the requisite service period. Compensation expense is recorded net of forfeitures, which we elect to record in the period they occur.
Earnings Per Share, Policy 
Earnings per Common Share
Basic earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities; anti-dilutive securities are excluded from the calculation. These potentially dilutive securities are calculated under the treasury stock method and consist of stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units.
New Accounting Pronouncements, Policy 
Accounting Guidance Issued and Adopted
In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows: Restricted Cash", which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this standard for the year ended December 31, 2016, which increased net cash used in investing activities by $1.9 million and decreased net cash used in investing activities by $4.7 million for the years ended December 31, 2015 and 2014, respectively.
In March 2016, the FASB issued ASU 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation. This standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. Our adoption of this standard for the year ended December 31, 2016 requires us to reflect any reclassifications as of January 1, 2016, the beginning of the fiscal year of adoption.
The new standard resulted in the recognition of excess tax benefits in our provision for income taxes. Upon adoption, this resulted in a cumulative effect of an accounting change reclassification of $43.9 million to accumulated deficit on the balance sheet as of January 1, 2016 with offsetting amounts to non-current deferred tax assets and liabilities on the consolidated balance sheet. It also resulted in a decrease to the tax provision and corresponding increase to net income of $10.8 million for the previously reported nine months ended September 30, 2016. The effect on our dilutive shares is disclosed in Note 27.
We elected to retrospectively apply the changes in presentation to the consolidated statements of cash flows and no longer classify excess tax benefits or employee taxes paid for withheld shares as financing activities, which increased net cash provided by operating activities and decreased net cash used in financing activities by $10.2 million for the year ended December 31, 2015. We also elected to account for forfeitures as they occur prospectively.
The following table summarizes the impact to our consolidated balance sheet, including the net amount charged to retained earnings as of January 1, 2016 as well as the retrospective impacts on our consolidated statement of cash flows:
Consolidated balance sheet
 
January 1, 2016
 
As Reported
Recasted1
Other assets (non-current assets)
$
434.2

$
393.7

Deferred income taxes (non-current liabilities)
$
165.5

$
162.1

Accumulated deficit
$
(132.8
)
$
(88.9
)
1Recasted financial information does not include the reclassifications addressed within ASU 2015-17 below.
Consolidated statement of cash flows:
 
Year ended December 31, 2015
 
As Reported
Recasted
Net cash provided by operating activities
$
399.6

$
409.8

Net cash used for financing activities
$
(74.5
)
$
(84.7
)

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", which requires that all deferred tax assets and liabilities be classified as non-current on the balance sheet. The standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this standard for the year ended December 31, 2016 and elected to apply the amendments retrospectively. The adoption did not have any impact on the Company's results of operations, cash flows or net assets.
The following table summarizes the impact to our consolidated balance sheet at December 31, 2015:
 
December 31, 2015
 
As Reported
Recasted
Deferred income taxes (current assets)
$
69.5

$
—

Other assets (non-current assets)
$
434.2

$
479.6

Deferred income taxes (current liabilities)
$
6.6

$
—

Deferred income taxes (non-current liabilities)
$
165.5

$
148.0


In May 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value ("NAV") per Share (or its Equivalent)”, which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. However, sufficient information must be provided to permit reconciliation of the fair value of assets categorized within the fair value hierarchy to the total fair value of plan assets. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The standard is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company adopted this standard for the year ended December 31, 2016 and applied this update retrospectively. The adoption of the standard resulted in the investment of certain debt asset backed securities and hedge funds for a combined fair value of $16.2 million being represented outside of the fair value hierarchy schedule at December 31, 2016, within Note 9. There were no retrospective reclassifications required as these investments did not exist at or prior to December 31, 2015.
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.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the guidance that an entity should use related to revenue recognition. This standard was effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies will be allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to this date.
In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," which provides clarification around identifying performance obligations and the treatment of different licensing contracts. Additional standards related to revenue from contracts with customers have been issued during 2016 to provide narrow scope improvements and clarification. During the year ended December 31, 2016, we have continued to assess the potential impact of the revised guidance on our consolidated financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters.
Recent Accounting Guidance (Tables)
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] 
The following table summarizes the impact to our consolidated balance sheet, including the net amount charged to retained earnings as of January 1, 2016 as well as the retrospective impacts on our consolidated statement of cash flows:
Consolidated balance sheet
 
January 1, 2016
 
As Reported
Recasted1
Other assets (non-current assets)
$
434.2

$
393.7

Deferred income taxes (non-current liabilities)
$
165.5

$
162.1

Accumulated deficit
$
(132.8
)
$
(88.9
)
1Recasted financial information does not include the reclassifications addressed within ASU 2015-17 below.
Consolidated statement of cash flows:
 
Year ended December 31, 2015
 
As Reported
Recasted
Net cash provided by operating activities
$
399.6

$
409.8

Net cash used for financing activities
$
(74.5
)
$
(84.7
)
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] 
The following table summarizes the impact to our consolidated balance sheet at December 31, 2015:
 
December 31, 2015
 
As Reported
Recasted
Deferred income taxes (current assets)
$
69.5

$
—

Other assets (non-current assets)
$
434.2

$
479.6

Deferred income taxes (current liabilities)
$
6.6

$
—

Deferred income taxes (non-current liabilities)
$
165.5

$
148.0

Goodwill and Identifiable Intangible Assets (Tables)
Schedule of Goodwill 
The following table shows changes in the carrying amount of goodwill from December 31, 2015 to December 31, 2016 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
December 31, 2014
$
933.6

$
67.5

$
1,001.1

Goodwill from acquisitions
17.2

0.7

$
17.9

Foreign currency translation
(84.7
)
(6.1
)
$
(90.8
)
December 31, 2015
$
866.1

$
62.1

$
928.2

Goodwill from acquisitions
64.2

15.5

79.7

Foreign currency translation
(43.8
)
(3.1
)
(46.9
)
December 31, 2016
$
886.5

$
74.5

$
961.0

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class 
The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
December 31, 2016
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
417.1

$
(153.6
)
$
263.5

10.2
Trademarks—indefinite-lived
273.2

—

273.2

Indefinite
Trademarks—definite-lived
55.0

(11.4
)
43.6

14.8
Customer relationships
672.6

(123.3
)
549.3

18.7
Non-compete agreements
2.4

(1.7
)
0.7

4.6
Total
$
1,420.3

$
(290.0
)
$
1,130.3

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

$
(117.2
)
$
295.8

10.0
Trademarks—indefinite-lived
284.4

—

284.4

Indefinite
Trademarks—definite-lived
45.2

(8.5
)
36.7

14.7
Customer relationships
676.1

(102.1
)
574.0

19.3
Non-compete agreements
1.9

(1.2
)
0.7

4.6
Total
$
1,420.6

$
(229.0
)
$
1,191.6

 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense 
The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is:
2017
$
80.5

2018
$
80.5

2019
$
80.5

2020
$
80.4

2021
$
80.4

Schedule of Indefinite-Lived Intangible Assets 
Activity related to in process research and development projects for the years ended December 31, 2015 and 2016:
In Process Research and Development
Activity
Balance at December 31, 2014
$
5.2

Completed
(3.5
)
Abandoned
(0.1
)
Balance at December 31, 2015
$
1.6

Completed
—

Abandoned
—

Foreign currency translation
(0.1
)
Balance at December 31, 2016
$
1.5

Restructuring (Tables)
Restructuring and Related Costs
The following table summarizes the activity related to the restructuring reserves and expenses for the years ended December 31, 2016, 2015 and 2014:
Balance at December 31, 2013
$
98.4

Expense recorded
8.5

Payments made
(51.6
)
Foreign currency translation
(6.8
)
Balance at December 31, 2014
$
48.5

Expense recorded
31.9

Payments made
(33.8
)
Foreign currency translation
(5.3
)
Balance at December 31, 2015
$
41.3

Expense recorded
58.5

Payments made
(31.0
)
Foreign currency translation
(2.7
)
Balance at December 31, 2016
$
66.1

Long-term Employee Benefits (Tables)
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets 
The following table sets forth the changes to the projected benefit obligations ("PBO") and plan assets for the years ended December 31, 2016 and 2015 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2016 and 2015 for the Company’s defined benefit pension plans:
 
Defined Benefits
 
Year Ended December 31,
Obligations and Funded Status
2016
2015
Change in benefit obligation:
 
 
Projected benefit obligation at beginning of year
$
541.7

$
613.1

Service cost
10.7

12.0

Interest cost
15.1

16.9

Participant contributions
1.0

0.9

Actuarial losses (gains), net
57.4

(12.0
)
Plan curtailments, settlements and special termination benefits
(2.0
)
(4.7
)
Benefits paid
(21.8
)
(27.4
)
Amendments
—

2.7

Currency translation adjustment
(54.5
)
(59.8
)
Projected benefit obligation at end of year
547.6

541.7

Change in plan assets:
 
 
Fair value of plan assets at beginning of year
278.4

294.5

Actual return on plan assets
41.1

6.0

Employer contributions
27.0

31.1

Participant contributions
1.0

0.9

Benefits paid
(21.8
)
(27.4
)
Settlements
(1.2
)
(4.7
)
Currency translation adjustment
(35.8
)
(22.0
)
Fair value of plan assets at end of year
288.7

278.4

Funded status, net
$
(258.9
)
$
(263.3
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
Other assets
$
0.3

$
0.2

Other accrued liabilities
(10.1
)
(11.2
)
Accrued pension and other long-term employee benefits
(249.1
)
(252.3
)
Net amount recognized
$
(258.9
)
$
(263.3
)
Schedule of Accumulated and Projected Benefit Obligations 
The following table reflects the ABO for all defined benefit pension plans as of December 31, 2016 and 2015. Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets.
 
Year Ended December 31,
 
2016
2015
ABO
$
516.4

$
500.1

Plans with PBO in excess of plan assets:
 
 
PBO
$
542.6

$
537.1

ABO
$
511.6

$
495.7

Fair value plan assets
$
283.4

$
273.7

Plans with ABO in excess of plan assets:
 
 
PBO
$
488.2

$
532.0

ABO
$
461.3

$
492.7

Fair value plan assets
$
232.6

$
270.3

Schedule of Net Periodic Benefit Cost Not yet Recognized 
The pre-tax amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss include the following related to defined benefit plans:
 
Year Ended December 31,
 
2016
2015
Accumulated net actuarial losses
$
(76.6
)
$
(48.3
)
Accumulated prior service credit
0.9

1.5

Total
$
(75.7
)
$
(46.8
)

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year 
The estimated pre-tax amounts that are expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2017 for the defined benefit plans is as follows:
 
2017
Amortization of net actuarial losses
$
(1.8
)
Amortization of prior service credit
—

Total
$
(1.8
)
Schedule of Net Benefit Costs 
The following table sets forth the pre-tax components of net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014.
 
Defined Benefits
 
Year Ended December 31,
 
2016
2015
2014
Components of net periodic benefit cost and amounts recognized in other comprehensive (income) loss:
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
$
10.7

$
12.0

$
15.4

Interest cost
15.1

16.9

22.9

Expected return on plan assets
(12.6
)
(14.6
)
(14.8
)
Amortization of actuarial (gain) loss, net
0.4

0.4

(0.3
)
Amortization of prior service credit
—

(0.1
)
—

Curtailment gain
(1.1
)
—

(7.3
)
Settlement (gain) loss
(0.5
)
0.5

0.1

Special termination benefit loss
0.2

—

—

Net periodic benefit cost
12.2

15.1

16.0

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
27.7

(3.4
)
60.6

Amortization of actuarial gain (loss), net
(0.4
)
(0.4
)
0.3

Prior service (credit) cost
—

2.7

(4.3
)
Amortization of prior service credit
—

0.1

—

Curtailment gain
1.1

—

7.3

Settlement gain (loss)
0.5

(0.5
)
(0.1
)
Other adjustments
—

—

(4.9
)
Total (gain) loss recognized in other comprehensive (income) loss
28.9

(1.5
)
58.9

Total recognized in net periodic benefit cost and other comprehensive (income) loss
$
41.1

$
13.6

$
74.9

 
 
Other Long-Term Employee Benefits
 
Year Ended December 31,
 
2016
2015
2014
Components of net periodic benefit (gain) cost and amounts recognized in other comprehensive (income) loss:
 
 
 
Net periodic benefit (gain) cost:
 
 
 
Service cost
$
—

$
—

$
0.1

Interest cost
—

—

0.1

Amortization of actuarial loss, net
—

—

0.1

Amortization of prior service credit
—

(3.7
)
(1.4
)
Settlement loss
—

0.3

—

Net periodic benefit (gain) cost
—

(3.4
)
(1.1
)
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss
—

—

(4.6
)
Amortization of actuarial gain (loss)
—

—

(0.1
)
Amortization of prior service credit
—

3.7

1.4

Settlement loss
—

(0.3
)
—

Other adjustments
—

0.3

—

Total (gain) loss recognized in other comprehensive income
—

3.7

(3.3
)
Total recognized in net periodic benefit cost and other comprehensive (income) loss
$
—

$
0.3

$
(4.4
)
Schedule of Assumptions Used 
We used the following assumptions in determining the benefit obligations and net periodic benefit cost:
 
2016
2015
2014
Pension Benefits
 
 
 
Weighted-average assumptions:
 
 
 
Discount rate to determine benefit obligation
2.52
%
3.05
%
3.23
%
Discount rate to determine net cost
3.05
%
3.23
%
4.11
%
Rate of future compensation increases to determine benefit obligation
3.07
%
3.03
%
3.57
%
Rate of future compensation increases to determine net cost
3.03
%
3.57
%
3.52
%
Rate of return on plan assets to determine net cost
4.75
%
5.21
%
5.23
%
 
2016
2015
2014
Other Long-Term Employee Benefits
 
 
 
Weighted-average assumptions:
 
 
 
Discount rate to determine benefit obligation
—

—

1.50
%
Discount rate to determine net cost
—

1.50
%
4.80
%
Rate of future compensation increases to determine benefit obligation
—

—

—

Rate of future compensation increases to determine net cost
—

—

—

Schedule of Expected Benefit Payments 
The following reflects the total benefit payments expected to be paid for defined benefits:
Year ended December 31,
Benefits
2017
$
25.2

2018
$
24.1

2019
$
27.5

2020
$
25.7

2021
$
25.3

2022—2026
$
164.2

There are no future benefit payments expected to be paid for other long-term employee benefits as this plan was effectively settled at December 31, 2015.
Schedule of Allocation of Plan Assets 
The table below summarizes the weighted average actual and target pension plan asset allocations at December 31 for all funded Axalta defined benefit plans.
Asset Category
2016
2015
Target Allocation
Equity securities
30-35%
30-35%
30-35%
Debt securities
35-40%
35-40%
35-40%
Real estate
0-5%
0-5%
0-5%
Other
25-30%
20-25%
25-30%
The table below presents the fair values of the defined benefit pension plan assets by level within the fair value hierarchy, as described in Note 3, at December 31, 2016 and 2015, respectively.
 
Fair value measurements at
December 31, 2016
 
Total
Level 1
Level 2
Level 3
Asset Category:
 
 
 
 
Cash and cash equivalents
$
2.8

$
2.8

$
—

$
—

U.S. equity securities
30.7

30.7

—

—

Non-U.S. equity securities
63.9

63.5

0.3

0.1

Debt securities—government issued
60.9

48.0

12.9

—

Debt securities—corporate issued
38.4

31.0

5.3

2.1

Hedge funds
0.2

0.2

—

—

Private market securities
64.4

0.2

0.1

64.1

Real estate investments
11.2

—

—

11.2

Total
$
272.5

$
176.4

$
18.6

$
77.5

Debt asset backed securities at NAV
8.8

 
 
 
Hedge funds at NAV
7.4

 
 
 
 
$
288.7

 
 
 
 
Fair value measurements at
December 31, 2015
 
Total
Level 1
Level 2
Level 3
Asset Category:
 
 
 
 
Cash and cash equivalents
$
2.8

$
2.8

$
—

$
—

U.S. equity securities
23.6

23.6

—

—

Non-U.S. equity securities
70.3

69.8

0.4

0.1

Debt—government issued
64.8

53.0

11.8

—

Debt—corporate issued
44.4

37.7

4.5

2.2

Hedge funds
0.2

0.2

—

—

Private market securities
63.8

0.4

0.1

63.3

Real estate investments
8.5

—

—

8.5

Total
$
278.4

$
187.5

$
16.8

$
74.1


Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] 
The table below presents a roll forward of activity for these assets for the years ended December 31, 2016 and 2015.
 
Level 3 assets
 
Total
Private
market
securities
Debt and Equity
Real
estate investments
Ending balance at December 31, 2014
$
65.8

$
63.0

$
2.4

$
0.4

Realized (loss)
—

—

—

—

Change in unrealized gain
(5.2
)
(5.2
)
(0.1
)
0.1

Purchases, sales, issues and settlements
13.5

5.5

—

8.0

Transfers in/(out) of Level 3
—

—

—

—

Ending balance at December 31, 2015
$
74.1

$
63.3

$
2.3

$
8.5

Realized (loss)
—

—

—

—

Change in unrealized gain
1.3

(1.4
)
(0.1
)
2.8

Purchases, sales, issues and settlements
2.1

2.2

—

(0.1
)
Transfers in/(out) of Level 3
—

—

—

—

Ending balance at December 31, 2016
$
77.5

$
64.1

$
2.2

$
11.2

Commitments and Contingencies (Tables)
Schedule of Sale Leaseback Transactions [Table Text Block] 
The table below reflects the total cash payments related to the transaction during the rental term as of December 31, 2016:
 
Sale-leaseback obligations
2017
$
1.0

2018
1.7

2019
1.7

2020
1.7

2021
1.7

Thereafter
19.6

Total minimum payments
$
27.4

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] 
At December 31, 2016, future minimum payments under non-cancelable operating leases were as follows:
 
Operating
Leases
2017
$
37.7

2018
31.0

2019
22.2

2020
18.2

2021
15.6

Thereafter
90.9

Total minimum payments
$
215.6

Stock-based Compensation (Tables)
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions 
Principal weighted average assumptions used in applying the Black-Scholes model were as follows:
 
2016 Grants
2015 Grants
2014 Grants
Expected Term
6.00 years

6.00 years

7.81 years

Volatility
21.63
%
22.19
%
28.28
%
Dividend Yield
—

—

—

Discount Rate
1.45
%
1.79
%
2.21
%
Schedule of Stock Options Roll Forward 
A summary of stock option award activity as of and for the year ended December 31, 2016 is presented below:
 
Awards
(in millions)
Weighted-
Average
Exercise
Price
Aggregate
Intrinsic
Value
 (in millions)
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at December 31, 2015
11.0

$
12.19

 
 
Granted
1.1

$
23.28

 
 
Exercised
(2.1
)
$
7.92

 
 
Forfeited
(0.4
)
$
11.40

 
 
Outstanding at December 31, 2016
9.6

$
14.40

 
 
Vested and expected to vest at December 31, 2016
9.6

$
14.40

$
128.3

7.17
Exercisable at December 31, 2016
7.7

$
11.42

$
124.0

6.79
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] 
A summary of restricted stock and restricted stock unit award activity as of December 31, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
1.7

$
32.22

Granted
0.9

$
23.64

Vested
(0.2
)
$
31.60

Forfeited
(0.1
)
$
26.91

Outstanding at December 31, 2016
2.3

$
29.18

Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] 
A summary of performance stock and performance share unit award activity as of December 31, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
—

$
—

Granted
0.3

$
24.74

Vested
—

$
—

Forfeited
—

$
—

Outstanding at December 31, 2016
0.3

$
27.74

Other Expense, Net (Tables)
Schedule of Other Nonoperating Income (Expense)
 
Year Ended December 31,
 
2016
2015
2014
Foreign exchange losses, net
$
30.6

$
93.7

$
81.2

Management fees and expenses
—

—

16.6

Impairment of real estate investment
10.5

30.6

—

Indemnity (gains) losses associated with the Acquisition
(0.7
)
(1.0
)
17.8

Debt extinguishment and refinancing related costs
97.6

2.5

6.1

Other miscellaneous expense (income), net
4.7

(14.6
)
(6.7
)
Total
$
142.7

$
111.2

$
115.0

Income Taxes (Tables)
Schedule of Income before Income Tax, Domestic and Foreign 
Domestic and Foreign Components of Income Before Income Taxes
 
Year Ended December 31,
 
2016
2015
2014
Domestic
$
31.9

$
(19.4
)
$
(8.8
)
Foreign
55.5

180.6

45.6

Total
$
87.4

$
161.2

$
36.8

Schedule of Components of Income Tax Expense (Benefit) 
Provision (Benefit) for Income Taxes
 
Year Ended December 31, 2016
Year Ended December 31, 2015
Year Ended December 31, 2014
 
Current  
Deferred  
Total  
Current  
Deferred  
Total  
Current  
Deferred  
Total  
U.S. federal
$
0.9

$
(0.2
)
$
0.7

$
—

$
19.2

$
19.2

$
—

$
(2.1
)
$
(2.1
)
U.S. state and local
3.7

8.3

12.0

3.1

8.6

11.7

2.0

(2.9
)
(0.9
)
Foreign
49.4

(22.3
)
27.1

65.2

(32.8
)
32.4

38.3

(33.2
)
5.1

Total
$
54.0

$
(14.2
)
$
39.8

$
68.3

$
(5.0
)
$
63.3

$
40.3

$
(38.2
)
$
2.1

Schedule of Effective Income Tax Rate Reconciliation 
Reconciliation to U.S. Statutory Rate
 
Year Ended December 31, 2016
Year Ended December 31, 2015
Year Ended December 31, 2014
Statutory U.S. federal income tax rate(1)
$
30.6

35.0
 %
$
56.4

35.0
 %
$
12.9

35.0
 %
Foreign income taxed at rates other than 35%
(45.6
)
(52.2
)
(41.4
)
(25.6
)
(46.7
)
(127.0
)
Changes in valuation allowances
9.6

11.0

34.4

21.3

44.4

120.9

Foreign exchange gain (loss), net
3.1

3.5

(10.5
)
(6.5
)
8.7

23.7

Unrecognized tax benefits(2)
7.1

8.1

0.4

0.3

(44.0
)
(119.7
)
Foreign taxes
4.5

5.1

5.8

3.6

1.2

3.3

Non-deductible interest
6.7

7.6

4.9

3.0

15.4

41.9

Non-deductible expenses
4.7

5.4

5.5

3.4

14.2

38.6

Tax credits
(6.7
)
(7.7
)
(5.5
)
(3.4
)
(5.1
)
(13.8
)
Excess tax benefits relating to share-based compensation(3)
(13.4
)
(15.4
)
—

—

—

—

Venezuela impairment
23.8

27.2

10.7

6.6

—

—

U.S. state and local taxes, net
7.8

9.0

8.1

5.0

—

—

Other - net
7.6

9.0

(5.5
)
(3.4
)
1.1

2.8

Total income tax provision (benefit) / effective tax rate
$
39.8

45.6
 %
$
63.3

39.3
 %
$
2.1

5.7
 %
(1)
The U.S. statutory rate has been used as management believes it is more meaningful to the Company.
(2)
Within this amount, the Company released an unrecognized tax benefit of $21.1 million in 2014 and recorded an unrecognized tax benefit of $3.6 million in 2016, both of which related to non-deductible interest and debt acquisition costs. These adjustments were fully offset by changes in the valuation allowance.
(3)
During the year ended December 31, 2016, the Company early adopted ASU 2016-09, which now requires the excess tax benefits related to share-based compensation to be reflected in the consolidated statements of operations as a component of provision for income taxes. Refer to Note 4 to the consolidated financial statements for further information.
Schedule of Deferred Tax Assets and Liabilities 
Deferred Tax Balances
Year Ended December 31,
 
2016
2015
Deferred tax asset
 
 
Tax loss, credit and interest carryforwards
$
263.7

$
227.4

Goodwill and intangibles
48.1

93.6

Compensation and employee benefits
92.8

93.8

Accruals and other reserves
31.7

30.4

Research and development capitalization
15.7

—

Other
16.4

12.1

Total deferred tax assets
468.4

457.3

Less: Valuation allowance
(135.4
)
(127.8
)
Net deferred tax assets
333.0

329.5

Deferred tax liabilities
 
 
Property, plant & equipment
(168.4
)
(191.5
)
Equity investment & other securities
(0.7
)
(0.5
)
Unremitted earnings
(5.8
)
(6.3
)
Long-term debt
(4.2
)
(6.6
)
Total deferred tax liabilities
(179.1
)
(204.9
)
Net deferred tax asset
$
153.9

$
124.6

Non-current assets1
314.1

272.6

Non-current liability1
(160.2
)
(148.0
)
Net deferred tax asset
$
153.9

$
124.6

1The non-current deferred tax asset and deferred tax liabilities balances for the year ended December 31, 2016 and December 31, 2015 are inclusive of effects of the adoption of ASU 2015-17, discussed further at Note 4 to the consolidated financial statements. 
Schedule of Unrecognized Tax Benefits Roll Forward 
Total Gross Unrecognized Tax Benefits
 
Year Ended December 31,
 
2016
2015
2014
Balance at January 1
$
4.7

$
5.3

$
38.9

Increases related to acquisition
—

—

—

Increases related to positions taken on items from prior years
—

—

—

Decreases related to positions taken on items from prior years
(0.2
)
(0.6
)
(33.6
)
Increases related to positions taken in the current year
7.8

—

—

Settlement of uncertain tax positions with tax authorities
—

—

—

Decreases due to expiration of statutes of limitations
—

—

—

Balance at December 31
$
12.3

$
4.7

$
5.3

Earnings Per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
A reconciliation of our basic and diluted net income per common share is as follows:
 
Year Ended December 31,
(In millions, except per share data)
2016(1)
2015
2014
Net income to common shareholders
$
41.8

$
93.7

$
27.4

Basic weighted average shares outstanding
238.1

233.8

229.3

Diluted weighted average shares outstanding
244.4

239.7

230.3

Net income per common share:
 
 
 
Basic net income per share
$
0.18

$
0.40

$
0.12

Diluted net income per share
$
0.17

$
0.39

$
0.12


(1)Net income per common share for the year ended December 31, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 4 which increased diluted weighted average shares outstanding by 1.7 million shares.
Accounts and Notes Receivable, Net (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable
 
Year Ended December 31,
 
2016
2015
Accounts receivable—trade, net
$
640.4

$
647.2

Notes receivable
68.7

43.0

Other
92.8

75.6

Total
$
801.9

$
765.8

Inventories (Tables)
Schedule of Inventory, Current
 
Year Ended December 31,
 
2016
2015
Finished products
$
315.2

$
313.1

Semi-finished products
87.5

88.5

Raw materials and supplies
127.0

129.1

Total
$
529.7

$
530.7

Net Property, Plant and Equipment (Tables)
Property, Plant and Equipment
 
 
 
 
Year Ended December 31,
 
Useful Lives (years)
2016
2015
Land
 
 
 
$
85.2

$
84.4

Buildings and improvements
5
-
25
454.0

423.5

Machinery and equipment
3
-
25
1,087.5

1,040.2

Software
5
-
7
139.7

132.1

Other
3
-
20
35.6

36.2

Construction in progress
 
 
 
131.0

138.9

Total
 
 
 
1,933.0

1,855.3

Accumulated depreciation
 
 
 
(617.3
)
(472.4
)
Property, plant and equipment, net
 
 
 
$
1,315.7

$
1,382.9

Other Assets (Tables)
Schedule of Other Assets
 
Year Ended December 31,
 
2016
2015
Available for sale securities
$
4.4

$
4.2

Deferred income taxes—non-current
314.1

272.6

Other assets
209.3

202.8

Total
$
527.8

$
479.6

Accounts Payable (Tables)
Schedule of Accounts Payable
 
Year Ended December 31,
 
2016
2015
Trade payables
$
429.5

$
418.6

Non-income taxes
27.2

22.4

Other
17.5

13.7

Total
$
474.2

$
454.7

 
Other Accrued Liabilities (Tables)
Schedule of Accrued Liabilities
 
Year Ended December 31,
 
2016
2015
Compensation and other employee-related costs
$
145.8

$
140.0

Current portion of long-term employee benefit plans
10.1

11.2

Restructuring
66.1

41.3

Discounts, rebates, and warranties
97.4

74.8

Income taxes payable
23.3

18.8

Derivative liabilities
1.3

1.8

Other
73.6

82.3

Total
$
417.6

$
370.2

Borrowings (Tables)
Schedule of Debt 
Borrowings are summarized as follows:
 
Year Ended December 31,
 
2016
2015
2020 Dollar Term Loans
$
—

$
2,042.5

2020 Euro Term Loans
—

428.0

2023 Dollar Term Loans
1,545.0

—

2023 Euro Term Loans
417.6

—

2021 Dollar Senior Notes
—

750.0

2021 Euro Senior Notes
—

274.4

2024 Dollar Senior Notes
500.0

—

2024 Euro Senior Notes
349.7

—

2025 Euro Senior Notes
469.8

—

Short-term and other borrowings
39.8

26.5

Unamortized original issue discount
(10.0
)
(14.0
)
Unamortized deferred financing costs
(48.0
)
(65.9
)
 
$
3,263.9

$
3,441.5

Less:
 
 
Short term borrowings
$
8.3

$
22.7

Current portion of long-term borrowings
19.6

27.4

Long-term debt
$
3,236.0

$
3,391.4

Schedule of Maturities of Long-term Debt 
Below is a schedule of required future repayments of all borrowings outstanding at December 31, 2016.
2017
$
27.9

2018
21.3

2019
20.5

2020
20.4

2021
20.3

Thereafter
3,193.8

 
$
3,304.2

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 Notes Percentage
2019
103.188
%
2020
102.125
%
2021
101.063
%
2022 and thereafter
100.000
%
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 Notes Percentage
2019
103.656
%
2020
102.438
%
2021
101.219
%
2022 and thereafter
100.000
%
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 Notes Percentage
2019
102.813
%
2020
101.875
%
2021
100.938
%
2022 and thereafter
100.000
%
Derivative Financial Instruments (Tables)
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location 
The following table sets forth the locations and amounts recognized during the years ended December 31, 2016, 2015, and 2014 respectively, for these cash flow hedges.
Derivatives in Cash Flow Hedging
Relationships in 2016:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gains) Losses 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
2.0

Interest expense, net
$
5.9

Interest expense, net
$
1.2

Derivatives in Cash Flow Hedging Relationships in 2015:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gain) Loss 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
5.5

Interest expense, net
$
6.5

Interest expense, net
$
0.4

Derivatives in Cash Flow Hedging Relationships in 2014:
Amount of
(Gain) Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of
(Gain) Loss
Reclassified
from
Accumulated
OCI to
Income
(Effective
Portion)
Location of 
(Gain) Loss 
Recognized in Income on 
Derivatives (Ineffective Portion)
Amount of
(Gain) Loss
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Interest rate contracts
$
4.6

Interest expense, net
$
6.5

Interest expense, net
$
0.3


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:
Derivatives Not Designated as
Hedging Instruments under
ASC 815
Location of (Gain) Loss
Recognized in Income on
Derivatives
Year Ended December 31, 2016
Year Ended December 31, 2015
Year Ended December 31, 2014
Foreign currency forward contracts
Other expense, net
$
4.3

$
(5.6
)
$
1.4

Interest rate cap
Interest expense, net
—

0.1

3.4

 
 
$
4.3

$
(5.5
)
$
4.8

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value 
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 the accompanying consolidated balance sheet:
 
Year Ended December 31,
 
2016
2015
Prepaid and other assets:
 
 
Interest rate swaps
$
0.1

$
0.4

Total assets
$
0.1

$
0.4

Other accrued liabilities:
 
 
Interest rate swaps
$
0.8

$
—

Other liabilities:
 
 
Interest rate swaps
$
—

$
1.8

Total liabilities
$
0.8

$
1.8

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value 
The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our consolidated balance sheet:
 
Year Ended December 31,
 
2016
2015
Prepaid and other assets:
 
 
Foreign currency contracts
$
0.1

$
0.3

Total assets
$
0.1

$
0.3

Other accrued liabilities:
 
 
Foreign currency contracts
$
0.5

$
—

Total liabilities:
0.5

—

Segments (Tables)
Reconciliation of Revenue from Segments to Consolidated 
Our business serves four end-markets globally as follows: 
 
Year Ended December 31,
 
2016
2015
2014
Performance Coatings
 
 
 
Refinish
$
1,684.4

$
1,702.0

$
1,850.8

Industrial
718.8

683.1

734.2

Total Net sales Performance Coatings
2,403.2

2,385.1

2,585.0

Transportation Coatings
 
 
 
Light Vehicle
1,337.7

1,310.6

1,384.5

Commercial Vehicle
332.6

391.5

392.2

Total Net sales Transportation Coatings
1,670.3

1,702.1

1,776.7

Total Net sales
$
4,073.5

$
4,087.2

$
4,361.7

Schedule of Segment Reporting Information, by Segment 
 
Performance
Coatings
Transportation
Coatings
Total
For the Year ended December 31, 2016
 
 
 
Net sales (1)
$
2,403.2

$
1,670.3

$
4,073.5

Equity in earnings in unconsolidated affiliates
(0.2
)
0.4

0.2

Adjusted EBITDA (2)
554.4

352.7

907.1

Investment in unconsolidated affiliates
2.5

11.1

13.6

 
Performance
Coatings
Transportation
Coatings
Total
For the Year ended December 31, 2015
 
 
 
Net sales (1)
$
2,385.1

$
1,702.1

$
4,087.2

Equity in earnings in unconsolidated affiliates
0.6

0.6

1.2

Adjusted EBITDA (2)
539.1

328.1

867.2

Investment in unconsolidated affiliates
4.0

8.4

12.4

 
Performance
Coatings
Transportation
Coatings
Total
For the Year ended December 31, 2014
 
 
 
Net sales (1)
$
2,585.0

$
1,776.7

$
4,361.7

Equity in losses in unconsolidated affiliates
(1.2
)
(0.2
)
(1.4
)
Adjusted EBITDA (2)
547.6

292.9

840.5

Investment in unconsolidated affiliates
7.2

7.1

14.3

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows:
Reconciliation of Operating Profit (Loss) from Segments to Consolidated 
 
Year Ended December 31,
 
2016
2015
2014
Income before income taxes
$
87.4

$
161.2

$
36.8

Interest expense, net
178.2

196.5

217.7

Depreciation and amortization
322.1

307.7

308.7

EBITDA
587.7

665.4

563.2

Debt extinguishment and refinancing related costs (a)
97.6

2.5

6.1

Foreign exchange remeasurement losses (b)
30.6

93.7

81.2

Long-term employee benefit plan adjustments (c)
1.5

(0.3
)
(0.6
)
Termination benefits and other employee related costs (d)
61.8

36.6

18.4

Consulting and advisory fees (e)
10.4

23.9

36.3

Transition-related costs (f)
—

(3.4
)
101.8

Offering and transactional costs (g)
6.0

(1.5
)
22.3

Stock-based compensation (h)
41.1

30.2

8.0

Other adjustments (i)
5.0

(5.8
)
6.0

Dividends in respect of noncontrolling interest (j)
(3.0
)
(4.7
)
(2.2
)
Asset impairments (k)
68.4

30.6

—

Adjusted EBITDA
$
907.1

$
867.2

$
840.5

(a)
During the years ended December 31, 2016, 2015 and 2014 we prepaid principal on our term loans, resulting in non-cash losses on extinguishment of $9.6 million, $2.5 million and $3.0 million, respectively. During the years ended December 31, 2016 and 2014 we amended our Credit Agreement and refinanced our indebtedness, resulting in additional losses of $88.0 million and $3.1 million, respectively. We do not consider these items to be indicative of our ongoing operating performance.
(b)
Eliminates foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $23.5 million, $51.5 million, and gains of $11.9 million for the years ended December 31, 2016, 2015 and 2014, respectively.
(c)
Eliminates the non-cash non-service components of long-term employee benefit costs (discussed further at Note 9).
(d)
Represents expenses primarily related to employee termination benefits including our initiative to improve the overall cost structure within the European region as well as costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. In 2014, termination benefits include the costs associated with our headcount initiatives for establishment of new roles and elimination of old roles and other employee costs associated with cost-saving opportunities that were related to our transition to a standalone entity.
(e)
Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance. Amounts incurred during 2014 relate to services rendered in conjunction with our transition to a standalone entity.
(f)
Represents charges and a change in estimate associated with the transition costs from DuPont to a standalone entity, including certain Acquisition indemnities. We do not consider these items to be indicative of our ongoing operating performance.
(g)
Represents costs associated with the offerings of our common shares by Carlyle, including the November 2014 IPO, and acquisition-related expenses, including changes in the fair value of contingent consideration, all of which are not considered indicative of our ongoing operating performance.
(h)
Represents non-cash costs associated with stock-based compensation, including $8.2 million of expense during the year ended December 31, 2015 attributable to the accelerated vesting of all issued and outstanding stock options issued under the 2013 Plan as a result of the Change in Control.
(i)
Represents costs for 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 equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments, Carlyle management fees incurred prior to the Change in Control and non-cash fair value inventory adjustments associated with our business combinations.
(j)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
(k)
As a result of currency devaluations in Venezuela, we recorded non-cash impairment charges relating to a real estate investment of $10.5 million and $30.6 million during the years ended December 31, 2016 and 2015, respectively. Additionally, during the year ended December 31, 2016, we recorded a $57.9 million non-cash impairment on long-lived assets associated with our Venezuela operations (discussed further at Note 26). We do not consider these impairments to be indicative of our ongoing operating performance.
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas 
Net sales by region were as follows:
 
Year Ended December 31,
 
2016
2015
2014
North America
$
1,431.4

$
1,371.9

$
1,307.8

EMEA
1,455.3

1,425.3

1,672.0

Asia Pacific
723.9

717.4

715.0

Latin America
462.9

572.6

666.9

Total (a)
$
4,073.5

$
4,087.2

$
4,361.7

Net long-lived assets by region were as follows:
 
Year Ended December 31,
 
2016
2015
North America
$
419.3

$
449.1

EMEA
456.9

493.2

Asia Pacific
248.0

234.5

Latin America
191.5

206.1

Total (b)
$
1,315.7

$
1,382.9

(a)
Net Sales are attributed to countries based on location of the customer. Sales to external customers in China represented approximately 13%, 13% and 11% of the total for the years ended December 31, 2016, 2015 and 2014, respectively. Sales to external customers in Germany represented approximately 9%, 9% and 10% of the total for the years ended December 31, 2016, 2015 and 2014, respectively. Mexico represented 6% of the total for the years ended December 31, 2016, 2015 and 2014. Canada, which is included in the North America region, represents approximately 4% of total net sales for the year ended December 31, 2016 and 3% for the years ended December 31, 2015 and 2014.
(b)
Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $262.2 million and $280.4 million in the years ended December 31, 2016 and 2015, respectively. China long-lived assets amounted to $204.0 million and $194.7 million in the years ended December 31, 2016 and 2015, respectively. Brazil long-lived assets amounted to approximately $94.9 million and $88.5 million in the years ended December 31, 2016 and 2015, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $20.0 million and $20.7 million in the years ended December 31, 2016 and 2015, respectively.
Accumulated Other Comprehensive Income (Loss) (Tables)
Schedule of Accumulated Other Comprehensive Income
T
 
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Gain (Loss) on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income
Balance, December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

$
(3.2
)
$
(269.3
)
Current year deferrals to AOCI
(59.4
)
(22.3
)
0.3

(2.5
)
(83.9
)
Reclassifications from AOCI to Net income
—

(0.9
)
—

3.7

2.8

Net Change
(59.4
)
(23.2
)
0.3

1.2

(81.1
)
Balance, December 31, 2016
$
(292.2
)
$
(56.6
)
$
0.4

$
(2.0
)
$
(350.4
)
 
Unrealized
Currency
Translation
Adjustments
Pension and
Other
Long-term
Employee
Benefit
Adjustments
Unrealized
Gain (Loss) on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Income
Balance, December 31, 2013
$
24.3

$
7.5

$
(0.9
)
$
3.1

$
34.0

Current year deferrals to AOCI
(96.4
)
(29.7
)
0.7

3.6

(121.8
)
Reclassifications from AOCI to Net income
—

(9.0
)
—

(6.5
)
(15.5
)
Net Change
(96.4
)
(38.7
)
0.7

(2.9
)
(137.3
)
Balance, December 31, 2014
$
(72.1
)
$
(31.2
)
$
(0.2
)
$
0.2

$
(103.3
)
Quarterly Financial Information (Unaudited) (Tables)
Schedule of Quarterly Financial Information
The following is a summary of the quarterly results of operations for the years ended December 31, 2016 and 2015, respectively (in millions, except per share data):
2016(1)
March 31
June 30(2)
September 30
December 31(3)
Full Year
Total revenue
$
961.6

$
1,072.1

$
1,029.1

$
1,034.6

$
4,097.4

Cost of goods sold
606.4

649.0

630.4

641.8

2,527.6

Net income (loss)
31.8

53.3

(3.1
)
(34.4
)
47.6

Net income (loss) attributable to controlling interests
30.9

51.7

(4.3
)
(36.5
)
41.8

Basic net income (loss) per share
0.13

0.22

(0.02
)
(0.15
)
0.18

Diluted net income (loss) per share
0.13

0.21

(0.02
)
(0.15
)
0.17

 
 
 
 
 
 
2015
March 31
June 30(a)
September 30
December 31
Full Year
Total revenue
$
997.5

$
1,101.1

$
1,005.1

$
1,009.6

$
4,113.3

Cost of goods sold
649.8

679.7

628.6

639.2

2,597.3

Net income (loss)
46.7

(24.3
)
36.4

39.1

97.9

Net income (loss) attributable to controlling interests
45.1

(25.1
)
35.1

38.6

93.7

Basic net income (loss) per share
0.20

(0.11
)
0.15

0.16

0.40

Diluted net income (loss) per share
0.19

(0.11
)
0.15

0.16

0.39

 
 
 
 
 
 
(1) The table above includes the impacts of our adoption of ASU 2016-09 which, as previously discussed in Note 4, provides for a benefit to net income and an increase in diluted shares used in the calculation of diluted net income per share. Previously disclosed net income (loss) was $29.7 million, $48.5 million and $(10.7) million for the three months ended March 31, 2016, June 30, 2016 and September 30, 2016, respectively. Previously disclosed diluted net income (loss) per share was $0.12, $0.20 and ($0.04) for the three months ended March 31, 2016, June 30, 2016 and September 30, 2016, respectively.
(2) During the three months ended June 30, 2016 and 2015, the Company recorded an impairment charge of $10.5 million and $30.6 million, respectively, based on our evaluation of the carrying value associated with our real estate investment in Venezuela. See further discussion in Note 26.
(3) During the three months ended December 31, 2016, the Company recorded an impairment charge of $57.9 million, based on our evaluation of the carrying value associated with our long-lived operating assets in Venezuela. See further discussion in Note 26. Also during the three months ended December 31, 2016, we recorded restructuring costs associated with our Axalta Way initiatives for $36.6 million.
General and Description of the Business (Details) (USD $)
12 Months Ended 1 Months Ended 17 Months Ended
Dec. 31, 2016
Axalta Coating Systems Luxembourg Top S.a.r.l [Member] [Member]
Dec. 31, 2016
Axalta Coating Systems Dutch Holdings A B.V. [Member]
Dec. 31, 2016
Axalta Coating Systems Dutch Holdings B B.V. [Member]
Dec. 31, 2016
Secondary Offering [Member]
Nov. 30, 2014
Common Stock [Member]
IPO [Member]
The Carlyle Group L.P. [Member]
Aug. 31, 2016
Common Stock [Member]
Secondary Offering [Member]
The Carlyle Group L.P. [Member]
offering
Aug. 1, 2016
Minimum [Member]
Common Stock [Member]
Secondary Offering [Member]
The Carlyle Group L.P. [Member]
Aug. 1, 2016
Maximum [Member]
Common Stock [Member]
Secondary Offering [Member]
The Carlyle Group L.P. [Member]
Entity Information [Line Items]
 
 
 
 
 
 
 
 
Ownership percentage
100.00% 
100.00% 
100.00% 
 
 
 
 
 
Number of shares issued in transaction (in shares)
 
 
 
 
57,500,000 
170,300,000.0 
 
 
Sale price per share (in dollars per share)
 
 
 
 
$ 19.50 
 
$ 27.93 
$ 29.75 
Secondary offerings
 
 
 
 
 
6 
 
 
Proceeds from issuance of common stock
 
 
 
$ 0 
 
 
 
 
Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accounting Policies [Line Items]
 
 
 
Business incentive programs
$ 1,130.3 
$ 1,191.6 
 
Minimum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Useful life of finite lived intangible assets
2 years 
 
 
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Useful life of finite lived intangible assets
20 years 
 
 
Customer Contracts [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Useful life of finite lived intangible assets
5 years 
 
 
Business incentive programs
170.8 
147.3 
 
Reductions of net sales
$ 53.5 
$ 50.6 
$ 43.0 
Recent Accounting Guidance (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other assets
$ 527.8 
$ 479.6 
 
Retained earnings, (accumulated deficit)
(47.1)
(132.8)
 
Accounting Standards Update 2016-09 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other assets
 
393.7 
 
Deferred tax liabilities, gross, noncurrent
 
162.1 
 
Retained earnings, (accumulated deficit)
 
(88.9)
 
Net cash provided by (used in) operating activities
 
409.8 
 
Net cash provided by (used in) financing activities
 
(84.7)
 
Accounting Standards Update 2015-17 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other assets
 
479.6 
 
Deferred tax liabilities, gross, noncurrent
 
148.0 
 
Deferred tax assets, gross, current
 
0 
 
Deferred tax liabilities, gross, current
 
0 
 
Scenario, Previously Reported [Member] |
Accounting Standards Update 2016-09 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other assets
 
434.2 
 
Deferred tax liabilities, gross, noncurrent
 
165.5 
 
Retained earnings, (accumulated deficit)
 
(132.8)
 
Net cash provided by (used in) operating activities
 
399.6 
 
Net cash provided by (used in) financing activities
 
(74.5)
 
Scenario, Previously Reported [Member] |
Accounting Standards Update 2015-17 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other assets
 
434.2 
 
Deferred tax liabilities, gross, noncurrent
 
165.5 
 
Deferred tax assets, gross, current
 
69.5 
 
Deferred tax liabilities, gross, current
 
6.6 
 
Debt Securities and Hedge Funds [Member] |
Accounting Standards Update 2015-07 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Alternative investments, fair value disclosure
16.2 
 
 
New Accounting Pronouncement, Early Adoption, Effect [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Increase (Decrease) to cash used in Investing Activities
 
1.9 
(4.7)
Effect of adoption, quantification
10.2 
 
 
New Accounting Pronouncement, Early Adoption, Effect [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Effect of adoption, quantification
10.8 
 
 
New Accounting Pronouncement, Early Adoption, Effect [Member] |
Accumulated Distributions in Excess of Net Income [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Effect of adoption, quantification
$ 43.9 
 
 
Acquisitions and Divestitures (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
installment
Dec. 31, 2014
Performance Coatings [Member]
Dec. 31, 2014
Performance Coatings [Member]
Other Nonoperating Income (Expense) [Member]
Business Acquisition [Line Items]
 
 
 
Percentage of voting interest acquired
51.00% 
 
 
Number of installments
2 
 
 
Noncontrolling interest, fair value
$ 51.3 
 
 
Assets acquired
126.6 
 
 
Net sales from acquired entities since acquisition date
50.4 
 
 
Proceeds from divestiture of businesses
 
17.5 
 
Gain (loss) from disposal of discontinued operation, before income tax
 
 
1.2 
Gain (loss) on disposal of discontinued operation, net of tax
 
 
$ 0.7 
Goodwill and Identifiable Intangible Assets - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Goodwill [Line Items]
 
Definite-lived intangible assets acquired
$ 102.6 
Technology-Based Intangible Assets [Member]
 
Goodwill [Line Items]
 
Definite-lived intangible assets acquired
17.7 
Trademarks [Member]
 
Goodwill [Line Items]
 
Definite-lived intangible assets acquired
10.7 
Customer Relationships [Member]
 
Goodwill [Line Items]
 
Definite-lived intangible assets acquired
73.7 
Noncompete Agreements [Member]
 
Goodwill [Line Items]
 
Definite-lived intangible assets acquired
$ 0.5 
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
$ 928.2 
$ 1,001.1 
Goodwill from acquisitions
79.7 
17.9 
Foreign currency translation
(46.9)
(90.8)
Goodwill, ending balance
961.0 
928.2 
Performance Coatings [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
866.1 
933.6 
Goodwill from acquisitions
64.2 
17.2 
Foreign currency translation
(43.8)
(84.7)
Goodwill, ending balance
886.5 
866.1 
Transportation Coatings [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
62.1 
67.5 
Goodwill from acquisitions
15.5 
0.7 
Foreign currency translation
(3.1)
(6.1)
Goodwill, ending balance
$ 74.5 
$ 62.1 
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
$ 1,420.3 
$ 1,420.6 
Accumulated Amortization
(290.0)
(229.0)
Net Book Value, definite-lived
1,130.3 
1,191.6 
Trademarks [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Net Book Value, indefinite-lived
273.2 
284.4 
Technology-Based Intangible Assets [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
417.1 
413.0 
Accumulated Amortization
(153.6)
(117.2)
Net Book Value, definite-lived
263.5 
295.8 
Weighted average amortization periods (years)
10 years 2 months 
10 years 
Trademarks [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
55.0 
45.2 
Accumulated Amortization
(11.4)
(8.5)
Net Book Value, definite-lived
43.6 
36.7 
Weighted average amortization periods (years)
14 years 8 months 31 days 
14 years 8 months 
Customer Relationships [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
672.6 
676.1 
Accumulated Amortization
(123.3)
(102.1)
Net Book Value, definite-lived
549.3 
574.0 
Weighted average amortization periods (years)
18 years 8 months 
19 years 4 months 
Noncompete Agreements [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
2.4 
1.9 
Accumulated Amortization
(1.7)
(1.2)
Net Book Value, definite-lived
$ 0.7 
$ 0.7 
Weighted average amortization periods (years)
4 years 7 months 
4 years 7 months 
Goodwill and Identifiable Intangible Assets - Schedule of Activity Related to In Process Research and Development Projects (Details) (In Process Research and Development [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
In Process Research and Development [Member]
 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
Beginning balance
$ 1.6 
$ 5.2 
Completed
0 
(3.5)
Abandoned
0 
(0.1)
Foreign currency translation
(0.1)
 
Ending balance
$ 1.5 
$ 1.6 
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
2017
$ 80.5 
2018
80.5 
2019
80.5 
2020
80.4 
2021
$ 80.4 
Restructuring - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring costs
$ 58.5 
$ 31.9 
$ 8.5 
Minimum [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring payment term
12 months 
 
 
Maximum [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring payment term
15 months 
 
 
Restructuring - Restructuring Reserve (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restructuring and Related Activities [Abstract]
 
 
 
Beginning balance
$ 41.3 
$ 48.5 
$ 98.4 
Expense recorded
58.5 
31.9 
8.5 
Payments made
(31.0)
(33.8)
(51.6)
Foreign currency translation
(2.7)
(5.3)
(6.8)
Ending balance
$ 66.1 
$ 41.3 
$ 48.5 
Long-term Employee Benefits - Additional Information (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Percent of actuarial losses in excess of market value or PBO to be Included in periodic benefit costs (exceeding)
10.00% 
 
 
Rate of return on plan assets to determine net cost
4.73% 
 
 
Assets expected to be returned to employer
$ 0 
 
 
Defined contribution plan, employer contribution amount
43,300,000 
36,700,000 
35,900,000 
Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Other post-employeement benefit obligation
547,600,000 
541,700,000 
613,100,000 
Accumulated other comprehensive income
(75,700,000)
(46,800,000)
 
Recognized gain (loss) due to curtailments
1,100,000 
0 
7,300,000 
Increases in AOCI due to amendments
 
 
12,000,000 
Expected future benefit payments
25,200,000 
 
 
Rate of return on plan assets to determine net cost
4.75% 
5.21% 
5.23% 
Estimated future employer contribution
12,800,000 
 
 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Other post-employeement benefit obligation
 
0 
100,000 
Accumulated other comprehensive income
 
0 
 
Expected future benefit payments
$ 0 
 
 
Europe [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Pension benefit obligation, percentage by region
85.00% 
 
 
Long-term Employee Benefits - Schedule of Defined Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Accrued pensions and other long-term employee benefits
$ (249.1)
$ (252.3)
 
Pension Plan [Member]
 
 
 
Change in benefit obligation:
 
 
 
Projected benefit obligation at beginning of year
541.7 
613.1 
 
Service cost
10.7 
12.0 
15.4 
Interest cost
15.1 
16.9 
22.9 
Participant contributions
1.0 
0.9 
 
Actuarial losses (gains), net
57.4 
(12.0)
 
Plan curtailments, settlements and special termination benefits
(2.0)
(4.7)
 
Benefits paid
(21.8)
(27.4)
 
Amendments
0 
2.7 
 
Currency translation adjustment
(54.5)
(59.8)
 
Projected benefit obligation at end of year
547.6 
541.7 
613.1 
Change in plan assets:
 
 
 
Fair value of plan assets at:
278.4 
294.5 
 
Actual return on plan assets
41.1 
6.0 
 
Employer contributions
27.0 
31.1 
 
Participant contributions
1.0 
0.9 
 
Benefits paid
(21.8)
(27.4)
 
Settlements
(1.2)
(4.7)
 
Currency translation adjustment
(35.8)
(22.0)
 
Fair value of plan assets at:
288.7 
278.4 
294.5 
Funded status, net
(258.9)
(263.3)
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Net amount recognized
(258.9)
(263.3)
 
Other Assets [Member] |
Pension Plan [Member]
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Other assets
0.3 
0.2 
 
Other Current Liabilities [Member] |
Pension Plan [Member]
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Other accrued liabilities
(10.1)
(11.2)
 
Accounts Payable and Accrued Liabilities [Member] |
Pension Plan [Member]
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Accrued pensions and other long-term employee benefits
$ (249.1)
$ (252.3)
 
Long-term Employee Benefits - Schedule of Accumulated and Projected Benefit Obligations (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
ABO
$ 516.4 
$ 500.1 
Plans with PBO in excess of plan assets:
 
 
PBO
542.6 
537.1 
ABO
511.6 
495.7 
Fair value plan assets
283.4 
273.7 
Plans with ABO in excess of plan assets:
 
 
PBO
488.2 
532.0 
ABO
461.3 
492.7 
Fair value plan assets
$ 232.6 
$ 270.3 
Long-term Employee Benefits - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated net actuarial losses
$ (76.6)
$ (48.3)
Accumulated prior service credit
0.9 
1.5 
Total
$ (75.7)
$ (46.8)
Long-term Employee Benefits - Schedule of Amounts in Accumulated Other Comprehensive Income to be Amortized (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Amortization of net actuarial losses
$ (1.8)
Amortization of prior service credit
0 
Total
$ (1.8)
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
$ 28.9 
$ 2.2 
$ 55.6 
Pension Plan [Member]
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
10.7 
12.0 
15.4 
Interest cost
15.1 
16.9 
22.9 
Expected return on plan assets
(12.6)
(14.6)
(14.8)
Amortization of actuarial (gain) loss, net
0.4 
0.4 
(0.3)
Amortization of prior service credit
0 
(0.1)
0 
Curtailment gain
(1.1)
0 
(7.3)
Settlement (gain) loss
(0.5)
0.5 
0.1 
Special termination benefit loss
0.2 
0 
0 
Net periodic benefit cost
12.2 
15.1 
16.0 
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
27.7 
(3.4)
60.6 
Amortization of actuarial gain (loss), net
(0.4)
(0.4)
0.3 
Prior service (credit) cost
0 
2.7 
(4.3)
Amortization of prior service credit
0 
0.1 
0 
Curtailment gain
1.1 
0 
7.3 
Settlement gain (loss)
0.5 
(0.5)
(0.1)
Other adjustments
0 
0 
(4.9)
Total (gain) loss recognized in other comprehensive (income) loss
28.9 
(1.5)
58.9 
Total recognized in net periodic benefit cost and other comprehensive (income) loss
41.1 
13.6 
74.9 
Other Postretirement Benefit Plan [Member]
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
0 
0 
0.1 
Interest cost
0 
0 
0.1 
Amortization of actuarial (gain) loss, net
0 
0 
0.1 
Amortization of prior service credit
0 
(3.7)
(1.4)
Settlement (gain) loss
0 
0.3 
0 
Net periodic benefit cost
0 
(3.4)
(1.1)
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
0 
0 
(4.6)
Amortization of actuarial gain (loss), net
0 
0 
(0.1)
Amortization of prior service credit
0 
3.7 
1.4 
Settlement gain (loss)
0 
(0.3)
0 
Other adjustments
0 
0.3 
0 
Total (gain) loss recognized in other comprehensive (income) loss
0 
3.7 
(3.3)
Total recognized in net periodic benefit cost and other comprehensive (income) loss
$ 0 
$ 0.3 
$ (4.4)
Long-term Employee Benefits - Schedule of Assumptions Used (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Rate of return on plan assets to determine net cost
4.73% 
 
 
Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine benefit obligation
2.52% 
3.05% 
3.23% 
Discount rate to determine net cost
3.05% 
3.23% 
4.11% 
Rate of future compensation increases to determine benefit obligation
3.07% 
3.03% 
3.57% 
Rate of future compensation increases to determine net cost
3.03% 
3.57% 
3.52% 
Rate of return on plan assets to determine net cost
4.75% 
5.21% 
5.23% 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine benefit obligation
0.00% 
0.00% 
1.50% 
Discount rate to determine net cost
0.00% 
1.50% 
4.80% 
Rate of future compensation increases to determine benefit obligation
0.00% 
0.00% 
0.00% 
Rate of future compensation increases to determine net cost
0.00% 
0.00% 
0.00% 
Long-term Employee Benefits - Schedule of Expected Benefit Payments (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2017
$ 25.2 
2018
24.1 
2019
27.5 
2020
25.7 
2021
25.3 
2022—2026
$ 164.2 
Long-term Employee Benefits - Schedule of Allocation of Plan Assets (Details) (Pension Plan [Member])
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Minimum [Member] |
Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
30.00% 
30.00% 
Target plan asset allocations minimum
30.00% 
 
Minimum [Member] |
Debt Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
35.00% 
35.00% 
Target plan asset allocations minimum
35.00% 
 
Minimum [Member] |
Real Estate [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
0.00% 
0.00% 
Target plan asset allocations minimum
0.00% 
 
Minimum [Member] |
Other Assets [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
25.00% 
20.00% 
Target plan asset allocations minimum
25.00% 
 
Maximum [Member] |
Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
35.00% 
35.00% 
Target plan asset allocations maximum
35.00% 
 
Maximum [Member] |
Debt Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
40.00% 
40.00% 
Target plan asset allocations maximum
40.00% 
 
Maximum [Member] |
Real Estate [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
5.00% 
5.00% 
Target plan asset allocations maximum
5.00% 
 
Maximum [Member] |
Other Assets [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
30.00% 
25.00% 
Target plan asset allocations maximum
30.00% 
 
Long-term Employee Benefits - Schedule of Fair Value of Defined Benefit Pension Plan Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 77.5 
$ 74.1 
$ 65.8 
Private Equity Funds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
64.1 
63.3 
63.0 
Real Estate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
11.2 
8.5 
0.4 
Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
288.7 
278.4 
294.5 
Pension Plan [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
176.4 
187.5 
 
Pension Plan [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
18.6 
16.8 
 
Pension Plan [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
77.5 
74.1 
 
Pension Plan [Member] |
Cash and Cash Equivalents [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
2.8 
2.8 
 
Pension Plan [Member] |
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
2.8 
2.8 
 
Pension Plan [Member] |
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
US Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
30.7 
23.6 
 
Pension Plan [Member] |
US Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
30.7 
23.6 
 
Pension Plan [Member] |
US Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
US Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
Foreign Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
63.9 
70.3 
 
Pension Plan [Member] |
Foreign Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
63.5 
69.8 
 
Pension Plan [Member] |
Foreign Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0.3 
0.4 
 
Pension Plan [Member] |
Foreign Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0.1 
0.1 
 
Pension Plan [Member] |
US and Foreign Government Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
60.9 
64.8 
 
Pension Plan [Member] |
US and Foreign Government Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
48.0 
53.0 
 
Pension Plan [Member] |
US and Foreign Government Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
12.9 
11.8 
 
Pension Plan [Member] |
US and Foreign Government Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
Corporate Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
38.4 
44.4 
 
Pension Plan [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
31.0 
37.7 
 
Pension Plan [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
5.3 
4.5 
 
Pension Plan [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
2.1 
2.2 
 
Pension Plan [Member] |
Hedge Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0.2 
0.2 
 
Net asset value
7.4 
 
 
Pension Plan [Member] |
Hedge Funds [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0.2 
0.2 
 
Pension Plan [Member] |
Hedge Funds [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
Hedge Funds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
64.4 
63.8 
 
Pension Plan [Member] |
Private Equity Funds [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0.2 
0.4 
 
Pension Plan [Member] |
Private Equity Funds [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0.1 
0.1 
 
Pension Plan [Member] |
Private Equity Funds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
64.1 
63.3 
 
Pension Plan [Member] |
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
11.2 
8.5 
 
Pension Plan [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
0 
0 
 
Pension Plan [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
11.2 
8.5 
 
Pension Plan [Member] |
Defined Benefit Plan Assets, Excluding Pension Trust Receivables [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
272.5 
278.4 
 
Pension Plan [Member] |
Asset-backed Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net asset value
$ 8.8 
 
 
Long-term Employee Benefits - Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Details) (Fair Value, Inputs, Level 3 [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Change in plan assets:
 
 
Fair value of plan assets at:
$ 74.1 
$ 65.8 
Realized (loss)
0 
0 
Change in unrealized gain
1.3 
(5.2)
Purchases, sales, issues and settlements
2.1 
13.5 
Transfers in/(out) of Level 3
0 
0 
Fair value of plan assets at:
77.5 
74.1 
Private Equity Funds [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
63.3 
63.0 
Realized (loss)
0 
0 
Change in unrealized gain
(1.4)
(5.2)
Purchases, sales, issues and settlements
2.2 
5.5 
Transfers in/(out) of Level 3
0 
0 
Fair value of plan assets at:
64.1 
63.3 
Debt and Equity [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
2.3 
2.4 
Realized (loss)
0 
0 
Change in unrealized gain
(0.1)
(0.1)
Purchases, sales, issues and settlements
0 
0 
Transfers in/(out) of Level 3
0 
0 
Fair value of plan assets at:
2.2 
2.3 
Real Estate [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
8.5 
0.4 
Realized (loss)
0 
0 
Change in unrealized gain
2.8 
0.1 
Purchases, sales, issues and settlements
(0.1)
8.0 
Transfers in/(out) of Level 3
0 
0 
Fair value of plan assets at:
$ 11.2 
$ 8.5 
Commitments and Contingencies - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Loss Contingencies [Line Items]
 
 
 
Sale leaseback transaction, net book value
$ 17.2 
 
 
Operating leases, rent expense, net
48.0 
48.2 
61.6 
Build To Suit Lease [Member]
 
 
 
Loss Contingencies [Line Items]
 
 
 
Construction in progress, gross
11.8 
 
 
Construction in progress, total estimated cost
$ 37.9 
 
 
Commitments and Contingencies - Schedule if Sales Leaseback Transactions (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
 
2017 Sales Leaseback Payments
$ 1.0 
2018 Sales Leaseback Payments
1.7 
2019 Sales Leaseback Payments
1.7 
2020 Sales Leaseback Payments
1.7 
2021 Sales Leaseback Payments
1.7 
Thereafter Sales Leaseback Payments
19.6 
Sales Leaseback Total Minimum Lease Payments
$ 27.4 
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
 
2017 Operating Lease Payment
$ 37.7 
2018 Operating Lease Payment
31.0 
2019 Operating Lease Payment
22.2 
2020 Operating Lease Payment
18.2 
2021 Operating Lease Payment
15.6 
Thereafter Operating Lease Payments
90.9 
Operating Lease Total Minimum Payments
$ 215.6 
Stock-based Compensation - Additional Information (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2014
July 31, 2013, Strike Price 1 and 4 [Member]
Dec. 31, 2014
July 31, 2013, Strike Price 2 and 3 [Member]
Dec. 31, 2016
Employee Stock Option [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
July 31, 2013, Strike Price 1 [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
July 31, 2013, Strike Price 4 [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
July 31, 2013, Strike Price 2 [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
July 31, 2013, Strike Price 3 [Member]
Dec. 31, 2016
Restricted Stock and Restricted Stock Units [Member]
Dec. 31, 2015
Restricted Stock and Restricted Stock Units [Member]
Dec. 31, 2016
Performance Shares [Member]
Dec. 31, 2016
Performance Shares [Member]
Minimum [Member]
Dec. 31, 2016
Performance Shares [Member]
Maximum [Member]
Dec. 31, 2015
2013 Plan [Member]
Dec. 31, 2013
2013 Plan [Member]
Dec. 31, 2014
2014 Plan [Member]
Dec. 31, 2016
2014 Plan [Member]
Employee Stock Option [Member]
Dec. 31, 2015
2014 Plan [Member]
Employee Stock Option [Member]
Dec. 31, 2014
2014 Plan [Member]
Employee Stock Option [Member]
Dec. 31, 2015
The Carlyle Group L.P. [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
$ 41.1 
$ 30.2 
$ 8.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax benefit from compensation expense
14.0 
10.7 
2.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation attributable to accelerated vesting
 
8.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.2 
 
 
 
 
 
 
Ownership percentage, less than
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
Forfeiture rate
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares authorized (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19,839,143 
11,830,000 
 
 
 
 
Expiration period (in years)
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grant date fair value (in dollars per share)
$ 5.69 
$ 8.15 
$ 1.92 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period (in years)
3 years 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average exercise price (in dollars per share)
$ 23.28 
 
 
 
 
 
$ 5.92 
$ 7.21 
$ 8.88 
$ 11.84 
 
 
 
 
 
 
 
 
 
 
 
 
Expected term (in years)
6 years 
 
 
6 years 6 months 
8 years 3 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
6 years 
6 years 
7 years 9 months 22 days 
 
Weighted average dividend rate
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
0.00% 
0.00% 
 
Cash received from exercise of stock options
30.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax benefit realized from exercise of stock options
13.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value on options exercised
42.5 
166.8 
 
 
 
 
 
 
 
 
5.5 
 
 
 
 
 
 
 
 
 
 
 
Vested in period, fair value
3.4 
24.3 
 
 
 
 
 
 
 
 
6.2 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost
4.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period for recognition of compensation not yet recognized (in years)
 
 
 
 
 
1 year 9 months 15 days 
 
 
 
 
1 year 8 months 17 days 
 
2 years 1 month 2 days 
 
 
 
 
 
 
 
 
 
Restricted stock grants in period (in shares)
 
 
 
 
 
 
 
 
 
 
900,000 
1,700,000 
300,000 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair value (in dollars per share)
 
 
 
 
 
 
 
 
 
 
$ 23.64 
$ 32.22 
$ 24.74 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost
 
 
 
 
 
 
 
 
 
 
$ 25.0 
 
$ 6.0 
 
 
 
 
 
 
 
 
 
Award requisite service period (in years)
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
Actual award percent
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
200.00% 
 
 
 
 
 
 
 
Stock-based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected term
6 years 
 
 
Dividend Yield
0.00% 
 
 
Employee Stock Option [Member] |
2014 Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected term
6 years 
6 years 
7 years 9 months 22 days 
Volatility
21.63% 
22.19% 
28.28% 
Dividend Yield
0.00% 
0.00% 
0.00% 
Discount Rate
1.45% 
1.79% 
2.21% 
Stock-based Compensation - Schedule of Stock Options Roll Forward (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Beginning balance (in shares)
11.0 
Granted (in shares)
1.1 
Exercised (in shares)
(2.1)
Forfeited (in shares)
(0.4)
Ending balance (in shares)
9.6 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
Beginning balance (in dollars per share)
$ 12.19 
Granted (in dollars per share)
$ 23.28 
Exercised (in dollars per share)
$ 7.92 
Forfeited (in dollars per share)
$ 11.40 
Ending balance (in dollars per share)
$ 14.40 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]
 
Vested and expected to vest (in shares)
9.6 
Vested and expected to vest, weighted average exercise price (in dollars per share)
$ 14.40 
Vested and expected to vest, aggregate intrinsic value
$ 128.3 
Vested and expected to vest, weighted average remaining contractual term (in years)
7 years 2 months 1 day 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
Exercisable (in shares)
7.7 
Exercisable, weighted average exercise price (in dollars per share)
$ 11.42 
Exercisable, aggregate intrinsic value
$ 124.0 
Exercisable, weighted average remaining contractual term (in years)
6 years 9 months 14 days 
Stock-based Compensation - Schedule of Share-based Compensation, Restricted Stock and Restricted Units Activity (Details) (Restricted Stock and Restricted Stock Units [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Restricted Stock and Restricted Stock Units [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
 
 
Beginning balance (in shares)
1.7 
 
Outstanding (in dollars per share)
$ 29.18 
$ 32.22 
Granted (in shares)
0.9 
1.7 
Granted (in dollars per share)
$ 23.64 
$ 32.22 
Vested (in shares)
(0.2)
 
Vested (in dollars per share)
$ 31.60 
 
Forfeited (in shares)
(0.1)
 
Forfeited (in dollars per share)
$ 26.91 
 
Ending balance (in shares)
2.3 
1.7 
Stock-based Compensation - Schedule of Performance Stock Awards and PSUs (Details) (Performance Shares [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Performance Shares [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
 
 
Beginning balance (in shares)
0 
 
Outstanding (in dollars per share)
$ 27.74 
$ 0.00 
Granted (in shares)
0.3 
 
Granted (in dollars per share)
$ 24.74 
 
Vested (in shares)
0 
 
Vested (in dollars per share)
$ 0.00 
 
Forfeited (in shares)
0 
 
Forfeited (in dollars per share)
$ 0.00 
 
Ending balance (in shares)
0.3 
 
Related Party Transactions (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Carlyle Investment Management Llc [Member]
 
Related Party Transaction [Line Items]
 
Fees and commissions
$ 3.0 
Management fee expense
3.2 
Pre tax charge related to management agreement
13.4 
Service King Collision Repair [Member]
 
Related Party Transaction [Line Items]
 
Related parties sales
$ 4.0 
Other Expense, Net - Schedule of Other Non-operating Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Other Income and Expenses [Abstract]
 
 
 
 
 
Foreign exchange losses, net
 
 
$ 30.6 
$ 93.7 
$ 81.2 
Management fees and expenses
 
 
0 
0 
16.6 
Impairment of real estate investment
10.5 
30.6 
10.5 
30.6 
0 
Indemnity (gains) losses associated with the Acquisition
 
 
(0.7)
(1.0)
17.8 
Debt extinguishment and refinancing related costs
 
 
97.6 
2.5 
6.1 
Other miscellaneous expense (income), net
 
 
4.7 
(14.6)
(6.7)
Total
 
 
$ 142.7 
$ 111.2 
$ 115.0 
Other Expense, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Other Income Expense [Line Items]
 
 
 
Additional interest purchased
 
25.00% 
 
Payments to acquire equity method investments
 
$ 4.3 
 
Gain recognized on step-acquisition
 
5.4 
 
(Gain) loss on non-derivative instruments, net
4.3 
(5.5)
4.8 
Other Nonoperating Income (Expense) [Member] |
Foreign Exchange Contract [Member]
 
 
 
Other Income Expense [Line Items]
 
 
 
(Gain) loss on non-derivative instruments, net
$ 4.3 
$ (5.6)
$ 1.4 
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
Domestic
$ 31.9 
$ (19.4)
$ (8.8)
Foreign
55.5 
180.6 
45.6 
Income before income taxes
$ 87.4 
$ 161.2 
$ 36.8 
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
U.S. federal
$ 0.9 
$ 0 
$ 0 
U.S. state and local
3.7 
3.1 
2.0 
Foreign
49.4 
65.2 
38.3 
Total
54.0 
68.3 
40.3 
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
U.S. federal
(0.2)
19.2 
(2.1)
U.S. state and local
8.3 
8.6 
(2.9)
Foreign
(22.3)
(32.8)
(33.2)
Total
(14.2)
(5.0)
(38.2)
U.S. federal
0.7 
19.2 
(2.1)
U.S. state and local
12.0 
11.7 
(0.9)
Foreign
27.1 
32.4 
5.1 
Total
$ 39.8 
$ 63.3 
$ 2.1 
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
Statutory U.S. federal income tax rate(1)
$ 30.6 
$ 56.4 
$ 12.9 
Foreign income taxed at rates other than 35%
(45.6)
(41.4)
(46.7)
Changes in valuation allowances
9.6 
34.4 
44.4 
Foreign exchange gain (loss), net
3.1 
(10.5)
8.7 
Unrecognized tax benefits(2)
7.1 
0.4 
(44.0)
Foreign taxes
4.5 
5.8 
1.2 
Non-deductible interest
6.7 
4.9 
15.4 
Non-deductible expenses
4.7 
5.5 
14.2 
Tax credits
(6.7)
(5.5)
(5.1)
Excess tax benefits relating to share-based compensation
(13.4)
0 
0 
Venezuela impairment
23.8 
10.7 
0 
U.S. state and local taxes, net
7.8 
8.1 
0 
Other - net
7.6 
(5.5)
1.1 
Total
39.8 
63.3 
2.1 
Effective Income Tax Rate Reconciliation, Percent [Abstract]
 
 
 
Statutory U.S. federal income tax rate(1)
35.00% 
35.00% 
35.00% 
Foreign income taxed at rates other than 35%
(52.20%)
(25.60%)
(127.00%)
Changes in valuation allowances
11.00% 
21.30% 
120.90% 
Foreign exchange gain (loss), net
3.50% 
(6.50%)
23.70% 
Unrecognized tax benefits(2)
8.10% 
0.30% 
(119.70%)
Foreign taxes
5.10% 
3.60% 
3.30% 
Non-deductible interest
7.60% 
3.00% 
41.90% 
Non-deductible expenses
5.40% 
3.40% 
38.60% 
Tax credits
(7.70%)
(3.40%)
(13.80%)
Excess tax benefits relating to share-based compensation
(15.40%)
0.00% 
0.00% 
Venezuela impairment
27.20% 
6.60% 
0.00% 
U.S. state and local taxes, net
9.00% 
5.00% 
0.00% 
Other - net
9.00% 
(3.40%)
2.80% 
Total income tax provision (benefit) / effective tax rate
45.60% 
39.30% 
5.70% 
Interest and debt acquisition costs
$ 3.6 
 
$ 21.1 
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Deferred tax asset
 
 
Tax loss, credit and interest carryforwards
$ 263.7 
$ 227.4 
Goodwill and intangibles
48.1 
93.6 
Compensation and employee benefits
92.8 
93.8 
Accruals and other reserves
31.7 
30.4 
Research and development capitalization
15.7 
0 
Other
16.4 
12.1 
Total deferred tax assets
468.4 
457.3 
Less: Valuation allowance
(135.4)
(127.8)
Net deferred tax assets
333.0 
329.5 
Deferred tax liabilities
 
 
Property, plant & equipment
(168.4)
(191.5)
Equity investment & other securities
(0.7)
(0.5)
Unremitted earnings
(5.8)
(6.3)
Long-term debt
(4.2)
(6.6)
Total deferred tax liabilities
(179.1)
(204.9)
Net deferred tax asset
153.9 
124.6 
Deferred Tax Assets, Net, Classification [Abstract]
 
 
Non-current assets
314.1 
272.6 
Non-current liability
(160.2)
(148.0)
Net deferred tax asset
$ 153.9 
$ 124.6 
Income Taxes - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Jurisdiction
Dec. 31, 2015
Dec. 31, 2014
tax_matter
Dec. 31, 2013
Schedule Of Income Tax [Line Items]
 
 
 
 
Tax credit carryforward
$ 26.0 
$ 18.7 
 
 
Unrecognized tax benefits
12.3 
4.7 
5.3 
38.9 
Unrecognized tax benefits that would impact effective tax rate
8.5 
4.7 
5.3 
 
Penalties and interest expense
0.3 
0.4 
6.8 
 
Penalties and interest accrued
1.1 
0.7 
0.3 
 
Number of tax matters resolved
 
 
2 
 
Unrecognized tax benefits, period increase (decrease)
 
 
31.0 
 
Number of foreign income tax jurisdictions
52 
 
 
 
Unrecognized tax benefits, including interest and penalties
13.4 
5.4 
5.6 
 
Unrecognized Tax Benefit [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Valuation allowances deduction
 
 
21.1 
 
LUXEMBOURG AND THE NETHERLANDS
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating loss carryforwards
113.8 
110.1 
 
 
NETHERLANDS
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Carryforward period (in years)
9 years 
 
 
 
New Accounting Pronouncement, Early Adoption, Effect [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Effect of adoption, quantification
10.2 
 
 
 
Retained Earnings [Member] |
New Accounting Pronouncement, Early Adoption, Effect [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Effect of adoption, quantification
43.9 
 
 
 
Interest Expense [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Tax credit carryforward
17.7 
16.8 
 
 
Foreign Tax Authority [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating loss carryforwards
152.8 
144.4 
 
 
Operating and capital loss carryforwards with no expiration
63.2 
76.4 
 
 
Operating and capital loss carryforwards, subject to expiration
89.6 
68.0 
 
 
Tax credit carryforward
1.9 
0.9 
 
 
Foreign Tax Authority [Member] |
Indefinite Carryforward Period [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Tax credit carryforward
1.8 
0.6 
 
 
Domestic Tax Authority [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating and capital loss carryforwards, subject to expiration
62.8 
86.3 
 
 
State and Local Jurisdiction [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating and capital loss carryforwards, subject to expiration
$ 2.5 
$ 4.2 
 
 
Income Taxes - Schedule of Total Gross Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Beginning Balance
$ 4.7 
$ 5.3 
$ 38.9 
Increases related to acquisition
0 
0 
0 
Increases related to positions taken on items from prior years
0 
0 
0 
Decreases related to positions taken on items from prior years
(0.2)
(0.6)
(33.6)
Increases related to positions taken in the current year
7.8 
0 
0 
Settlement of uncertain tax positions with tax authorities
0 
0 
0 
Decreases due to expiration of statutes of limitations
0 
0 
0 
Ending Balance
$ 12.3 
$ 4.7 
$ 5.3 
Earnings Per Common Share - Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to controlling interests
$ (36.5)
$ (4.3)
$ 51.7 
$ 30.9 
$ 38.6 
$ 35.1 
$ (25.1)
$ 45.1 
$ 41.8 
$ 93.7 
$ 27.4 
Basic weighted average shares outstanding (in dollars per share)
 
 
 
 
 
 
 
 
238.1 
233.8 
229.3 
Diluted weighted average shares outstanding (in dollars per share)
 
 
 
 
 
 
 
 
244.4 
239.7 
230.3 
Net income per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic net income per share (in dollars per share)
$ (0.15)
$ (0.02)
$ 0.22 
$ 0.13 
$ 0.16 
$ 0.15 
$ (0.11)
$ 0.20 
$ 0.18 
$ 0.40 
$ 0.12 
Diluted net income per share (in dollars per share)
$ (0.15)
$ (0.02)
$ 0.21 
$ 0.13 
$ 0.16 
$ 0.15 
$ (0.11)
$ 0.19 
$ 0.17 
$ 0.39 
$ 0.12 
Adjustments for New Accounting Principle, Early Adoption [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Diluted weighted average shares outstanding (in dollars per share)
 
 
 
 
 
 
 
 
1.7 
 
 
Net income per common share:
 
 
 
 
 
 
 
 
 
 
 
Diluted net income per share (in dollars per share)
 
$ (0.04)
$ 0.20 
$ 0.12 
 
 
 
 
 
 
 
Earnings Per Common Share - Additional Information (Details)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Oct. 31, 2014
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Earnings Per Share [Abstract]
 
 
 
 
Antidilutive securities excluded from computation of earnings per share (in shares)
 
1.3 
0.7 
7.2 
Stock split conversion ratio (in shares)
1.69 
 
 
 
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Receivables [Abstract]
 
 
Accounts receivable—trade, net
$ 640.4 
$ 647.2 
Notes receivable
68.7 
43.0 
Other
92.8 
75.6 
Total
$ 801.9 
$ 765.8 
Accounts and Notes Receivable, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Receivables [Abstract]
 
 
 
Allowance for doubtful accounts
$ 13.7 
$ 10.7 
 
Bad debt expense
$ 3.4 
$ 4.9 
$ 5.1 
Inventories - Schedule of Inventory (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Finished products
$ 315.2 
$ 313.1 
Semi-finished products
87.5 
88.5 
Raw materials and supplies
127.0 
129.1 
Inventories
$ 529.7 
$ 530.7 
Inventories - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Stores and supplies inventories
$ 20.2 
$ 20.8 
Net Property, Plant and Equipment - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Inventory Disclosure [Abstract]
 
 
 
Depreciation
$ 176.8 
$ 169.1 
$ 176.6 
Net Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
Land
Dec. 31, 2015
Land
Dec. 31, 2016
Buildings and improvements
Dec. 31, 2015
Buildings and improvements
Dec. 31, 2016
Machinery and equipment
Dec. 31, 2015
Machinery and equipment
Dec. 31, 2016
Software
Dec. 31, 2015
Software
Dec. 31, 2016
Other
Dec. 31, 2015
Other
Dec. 31, 2016
Construction in progress
Dec. 31, 2015
Construction in progress
Dec. 31, 2016
Minimum [Member]
Buildings and improvements
Dec. 31, 2016
Minimum [Member]
Machinery and equipment
Dec. 31, 2016
Minimum [Member]
Software
Dec. 31, 2016
Minimum [Member]
Other
Dec. 31, 2016
Maximum [Member]
Buildings and improvements
Dec. 31, 2016
Maximum [Member]
Machinery and equipment
Dec. 31, 2016
Maximum [Member]
Software
Dec. 31, 2016
Maximum [Member]
Other
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Useful life of PP&E
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
3 years 
5 years 
3 years 
25 years 
25 years 
7 years 
20 years 
Property, plant and equipment, gross
$ 1,933.0 
$ 1,855.3 
$ 85.2 
$ 84.4 
$ 454.0 
$ 423.5 
$ 1,087.5 
$ 1,040.2 
$ 139.7 
$ 132.1 
$ 35.6 
$ 36.2 
$ 131.0 
$ 138.9 
 
 
 
 
 
 
 
 
Accumulated depreciation
(617.3)
(472.4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
$ 1,315.7 
$ 1,382.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Available for sale securities
$ 4.4 
$ 4.2 
Deferred income taxes—non-current
314.1 
272.6 
Other assets
209.3 
202.8 
Total
$ 527.8 
$ 479.6 
Accounts Payable (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Payables and Accruals [Abstract]
 
 
Trade payables
$ 429.5 
$ 418.6 
Non-income taxes
27.2 
22.4 
Other
17.5 
13.7 
Total
$ 474.2 
$ 454.7 
Other Accrued Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Payables and Accruals [Abstract]
 
 
 
 
Compensation and other employee-related costs
$ 145.8 
$ 140.0 
 
 
Current portion of long-term employee benefit plans
10.1 
11.2 
 
 
Restructuring
66.1 
41.3 
48.5 
98.4 
Discounts, rebates, and warranties
97.4 
74.8 
 
 
Income taxes payable
23.3 
18.8 
 
 
Derivative liabilities
1.3 
1.8 
 
 
Other
73.6 
82.3 
 
 
Total
$ 417.6 
$ 370.2 
 
 
Borrowings - Schedule of Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Aug. 16, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
 
Short-term and other borrowings
$ 39.8 
 
$ 26.5 
Unamortized original issue discount
(10.0)
 
(14.0)
Unamortized deferred financing costs
(48.0)
 
(65.9)
Debt and Capital Lease Obligations
3,263.9 
 
3,441.5 
Short term borrowings
8.3 
 
22.7 
Current portion of long-term borrowings
19.6 
 
27.4 
Long-term borrowings
3,236.0 
 
3,391.4 
Dollar Term Loan Due 2020 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Term loan
0 
 
2,042.5 
Euro Term Loan Due 2020 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Term loan
0 
 
428.0 
2023 Dollar Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Term loan
1,545.0 
 
0 
2023 Euro Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Term loan
417.6 
 
0 
2021 Dollar Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
0 
 
750.0 
2021 Euro Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
0 
 
274.4 
2024 Dollar Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
500.0 
 
0 
Unamortized original issue discount
 
(2.0)
 
2024 Euro Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
349.7 
 
0 
2025 Euro Senior Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
$ 469.8 
 
$ 0 
Borrowings - Senior Secured Credit Facilities (Details)
0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended
Aug. 16, 2016
Feb. 3, 2014
USD ($)
Dec. 31, 2016
USD ($)
Sep. 30, 2015
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Aug. 1, 2016
Revolving Credit Facility [Member]
Dec. 31, 2016
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2015
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2014
Revolving Credit Facility [Member]
USD ($)
Aug. 1, 2016
Revolving Credit Facility [Member]
Jul. 31, 2016
Revolving Credit Facility [Member]
Feb. 3, 2014
Base Rate [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Prime Rate [Member]
Adjusted Euro Currency Rate [Member]
Oct. 31, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Apr. 30, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Dec. 31, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Dec. 31, 2015
Dollar Term Loan Due 2020 [Member]
USD ($)
Jun. 30, 2015
Dollar Term Loan Due 2020 [Member]
Dec. 31, 2014
Dollar Term Loan Due 2020 [Member]
USD ($)
Dec. 15, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
USD ($)
Dec. 31, 2016
Dollar Term Loan Due 2020 [Member]
Write off of Original Issue Discounts [Member]
USD ($)
Dec. 31, 2015
Dollar Term Loan Due 2020 [Member]
Write off of Original Issue Discounts [Member]
USD ($)
Dec. 31, 2014
Dollar Term Loan Due 2020 [Member]
Write off of Original Issue Discounts [Member]
USD ($)
Dec. 31, 2016
Dollar Term Loan Due 2020 [Member]
Debt Refinance [Member]
USD ($)
Dec. 31, 2016
Dollar Term Loan Due 2020 [Member]
Debt Refinance [Member]
Write off of Original Issue Discounts [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Dec. 31, 2016
Dollar Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Eurocurrency Rate Loans [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Base Rate [Member]
Dec. 31, 2016
Dollar Term Loan Due 2020 [Member]
Base Rate [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Sep. 30, 2016
Euro Term Loan Due 2020 [Member]
USD ($)
Jun. 30, 2015
Euro Term Loan Due 2020 [Member]
Dec. 15, 2016
Euro Term Loan Due 2020 [Member]
EUR (€)
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
EUR (€)
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Dec. 31, 2016
Euro Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Dec. 31, 2016
2023 Euro Term Loan [Member]
EUR (€)
Dec. 31, 2016
2023 Euro Term Loan [Member]
Eurocurrency Rate Loans [Member]
Dec. 31, 2016
2023 Euro Term Loan [Member]
Base Rate [Member]
Dec. 31, 2016
2023 Dollar Term Loan [Member]
USD ($)
Dec. 31, 2016
2023 Dollar Term Loan [Member]
Eurocurrency Rate Loans [Member]
Dec. 31, 2016
2023 Dollar Term Loan [Member]
Interest Rate Floor [Member]
Dec. 31, 2016
2023 Dollar Term Loan [Member]
Base Rate [Member]
Aug. 16, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Revolving Credit Facility [Member]
Feb. 3, 2014
Senior Secured Credit Facility, Base Rate Loans [Member]
Revolving Credit Facility [Member]
Aug. 1, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Federal Funds Effective Swap Rate [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facilities [Member]
Revolving Credit Facility [Member]
Feb. 3, 2014
Senior Secured Credit Facilities [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facilities [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Dec. 31, 2016
Senior Secured Credit Facilities [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, long-term and short-term, combined amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,775,300,000 
$ 2,282,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
€ 199,000,000 
€ 397,000,000 
 
 
 
 
€ 400,000,000 
 
 
$ 1,545,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
0.50% 
 
 
 
 
 
 
2.75% 
 
 
 
 
 
 
 
 
3.00% 
 
1.00% 
3.50% 
1.25% 
2.00% 
 
 
 
3.00% 
 
 
3.25% 
 
2.50% 
 
 
2.25% 
0.75% 
 
2.50% 
0.75% 
1.50% 
1.75% 
2.50% 
 
1.00% 
0.50% 
2.75% 
3.50% 
0.00% 
 
Debt instrument covenant maximum consolidated leverage ratio
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, effective percentage rate range, minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
4.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument basis spread reduced on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
0.25% 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, stated percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
2.50 
3.50 
5.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument periodic payment principal percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration period (in years)
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accelerated period prior to expiration period (in days)
 
 
 
 
 
 
 
91 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of credit facility outstanding for accelerated maturity
 
 
 
 
 
 
 
 
 
 
 
30.00% 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent not cash collateralized
 
 
 
 
 
 
 
 
 
 
 
103.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis spread reduced on variable rate, step-down percent for 3.00:1.00 leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.50% 
 
 
 
 
 
2.50% 
Basis spread reduced on variable rate, step-down percent for 2.50:1.00 leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
 
 
 
 
 
2.25% 
Line of credit facility, maximum borrowing capacity
 
 
400,000,000.0 
 
400,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum amount outstanding during period
 
 
 
 
 
 
 
 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding, amount
 
 
 
 
 
 
 
 
21,300,000 
24,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
 
378,700,000 
375,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
 
 
 
 
97,600,000 
2,500,000 
6,100,000 
 
2,300,000 
 
 
 
 
 
 
 
 
 
9,600,000 
2,500,000 
 
3,000,000 
 
 
 
 
 
4,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains (losses) on restructuring of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(10,400,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Write off of deferred debt issuance cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,100,000 
1,800,000 
 
2,200,000 
 
 
 
 
 
4,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of debt discount (premium)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000 
700,000 
800,000 
 
1,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 150,000,000 
 
$ 100,000,000 
 
$ 100,000,000 
 
$ 100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings - Senior Notes (Details)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Feb. 1, 2013
2024 Dollar Senior Notes [Member]
Dec. 31, 2016
2024 Dollar Senior Notes [Member]
2016 [Member]
Feb. 1, 2013
7.375% Senior Unsecured Notes Due 2021 [Member]
Feb. 1, 2013
5.750% Senior Secured Notes Due 2021 [Member]
Dec. 31, 2016
2021 Dollar Senior Notes [Member]
2016 [Member]
Dec. 31, 2016
Euro Senior Notes [Member]
2016 [Member]
Dec. 31, 2016
2021 Dollar Senior Notes [Member]
USD ($)
Feb. 1, 2013
2021 Dollar Senior Notes [Member]
USD ($)
Dec. 31, 2016
2021 Euro Senior Notes [Member]
USD ($)
Feb. 1, 2013
2021 Euro Senior Notes [Member]
EUR (€)
Dec. 31, 2016
2024 Dollar Senior Notes [Member]
Aug. 16, 2016
2024 Dollar Senior Notes [Member]
USD ($)
Aug. 16, 2016
2024 Dollar Senior Notes [Member]
Any Time Prior to August 15, 2019 [Member]
Dec. 31, 2016
2024 Euro Senior Notes [Member]
Sep. 30, 2016
2024 Euro Senior Notes [Member]
Aug. 16, 2016
2024 Euro Senior Notes [Member]
EUR (€)
Aug. 16, 2016
2024 Euro Senior Notes [Member]
Any Time Prior to August 15, 2019 [Member]
Dec. 31, 2016
2025 Euro Senior Notes [Member]
Sep. 27, 2016
2025 Euro Senior Notes [Member]
EUR (€)
Dec. 31, 2016
2025 Euro Senior Notes [Member]
Any Time Prior to January 15, 2020 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
$ 750.0 
 
€ 250.0 
 
$ 500.0 
 
 
 
€ 335.0 
 
 
€ 450.0 
 
Debt instrument, interest rate, stated percentage
 
 
 
 
 
 
 
 
 
 
7.375% 
 
5.75% 
 
4.875% 
 
 
4.25% 
4.25% 
 
3.75% 
3.75% 
 
Debt instrument, redemption price, percentage
 
 
 
101.00% 
103.656% 
 
 
105.531% 
104.313% 
 
 
 
 
104.875% 
 
 
104.25% 
 
 
 
103.75% 
 
 
Gains (losses) on extinguishment of debt
(97.6)
(2.5)
(6.1)
 
 
 
 
 
 
(56.9)
 
(18.4)
 
 
 
 
 
 
 
 
 
 
 
Debt instrument redemption price monetary
 
 
 
 
 
 
 
 
 
(41.5)
 
(12.1)
 
 
 
 
 
 
 
 
 
 
 
Write off of deferred debt issuance cost
 
 
 
 
 
 
 
 
 
13.0 
 
5.6 
 
 
 
 
 
 
 
 
 
 
 
Fee amount
 
 
 
 
 
 
 
 
 
2.4 
 
0.7 
 
 
 
 
 
 
 
 
 
 
 
Discount, percent of par
 
 
 
 
 
 
 
 
 
 
 
 
 
 
99.951% 
 
 
 
 
 
 
 
 
Unamortized discount
$ 10.0 
$ 14.0 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2.0 
 
 
 
 
 
 
 
 
Redemption price, percentage of principal amount redeemed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
 
 
 
40.00% 
 
 
40.00% 
Redemption, percent of principal required to be outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
50.00% 
 
 
 
50.00% 
 
 
Redemption price, percentage if change in control occurs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
101.00% 
 
 
 
101.00% 
 
 
Debt instrument maturity year
 
 
 
 
 
2021 
2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings - Debt Instrument Redemption (Details)
0 Months Ended 12 Months Ended
Feb. 1, 2013
2024 Dollar Senior Notes [Member]
Dec. 31, 2016
2024 Dollar Senior Notes [Member]
2019 [Member]
Dec. 31, 2016
2024 Dollar Senior Notes [Member]
2020 [Member]
Dec. 31, 2016
2024 Dollar Senior Notes [Member]
2021 [Member]
Dec. 31, 2016
2024 Dollar Senior Notes [Member]
2022 [Member]
Dec. 31, 2016
2024 Euro Senior Notes [Member]
2019 [Member]
Dec. 31, 2016
2024 Euro Senior Notes [Member]
2020 [Member]
Dec. 31, 2016
2024 Euro Senior Notes [Member]
2021 [Member]
Dec. 31, 2016
2024 Euro Senior Notes [Member]
2022 [Member]
Dec. 31, 2016
2025 Euro Senior Notes [Member]
2019 [Member]
Dec. 31, 2016
2025 Euro Senior Notes [Member]
2020 [Member]
Dec. 31, 2016
2025 Euro Senior Notes [Member]
2021 [Member]
Dec. 31, 2016
2025 Euro Senior Notes [Member]
2022 [Member]
Debt Instrument, Redemption [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, redemption price, percentage
101.00% 
103.656% 
102.438% 
101.219% 
100.00% 
103.188% 
102.125% 
101.063% 
100.00% 
102.813% 
101.875% 
100.938% 
100.00% 
Borrowings - Schedule of Maturities of Long-term Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Debt Instrument [Line Items]
 
2017
$ 27.9 
2018
21.3 
2019
20.5 
2020
20.4 
2021
20.3 
Thereafter
3,193.8 
Long-term debt
3,304.2 
Lease obligations
215.6 
Build-to-suit Lease and Sale-leaseback Financing [Member]
 
Debt Instrument [Line Items]
 
Lease obligations
$ 17.7 
Fair Value Accounting (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Impairment of real estate investment
$ 10,500,000 
$ 30,600,000 
$ 10,500,000 
$ 30,600,000 
$ 0 
Operating asset impairment
 
 
57,900,000 
0 
0 
Available-for-sale securities
 
 
4,400,000 
4,200,000 
 
Contingent consideration, fair value
 
 
10,000,000 
 
 
Adjustments to contingent consideration
 
 
800,000 
 
 
2024 Dollar Senior Notes [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
500,000,000 
 
 
2024 Euro Senior Notes [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
363,800,000 
 
 
2025 Euro Senior Notes [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
472,200,000 
 
 
2021 Dollar Senior Notes [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
 
787,500,000 
 
2021 Euro Senior Notes [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
 
285,400,000 
 
2023 Dollar Term Loan [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
1,560,500,000 
 
 
2023 Euro Term Loan [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
421,800,000 
 
 
Dollar Term Loan Due 2020 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
 
2,024,600,000 
 
Euro Term Loan Due 2020 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Long-term debt, fair value
 
 
 
427,500,000 
 
In Process Research and Development [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Goodwill and intangible asset impairment
 
 
0 
100,000 
100,000 
Subsidiaries [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Impairment of real estate investment
 
 
10,500,000 
30,600,000 
 
Operating asset impairment
 
 
$ 57,900,000 
 
$ 0 
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) (Fair Value, Inputs, Level 2 [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
$ 0.1 
$ 0.4 
Derivative liability
0.8 
1.8 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0.1 
0.4 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
0.8 
0 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
0 
1.8 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0.1 
0.3 
Derivative liability
0.5 
0 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0.1 
0.3 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
$ 0.5 
$ 0 
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (Interest Rate Contract [Member], Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion)
$ 2.0 
$ 5.5 
$ 4.6 
Interest Expense [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion)
5.9 
6.5 
6.5 
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)
$ 1.2 
$ 0.4 
$ 0.3 
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
(Gain) loss on non-derivative instruments, net
$ 4.3 
$ (5.5)
$ 4.8 
Other Nonoperating Income (Expense) [Member] |
Foreign Exchange Contract [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
(Gain) loss on non-derivative instruments, net
4.3 
(5.6)
1.4 
Interest Expense [Member] |
Interest Rate Cap [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
(Gain) loss on non-derivative instruments, net
$ 0 
$ 0.1 
$ 3.4 
Derivative Financial Instruments - Additional Information (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
swap
Dec. 31, 2013
Euro Term Loan Due 2020 [Member]
EUR (€)
Dec. 31, 2016
Interest Rate Swap [Member]
Dec. 31, 2013
Interest Rate Swap [Member]
USD ($)
Dec. 31, 2013
Interest Rate Cap [Member]
Euro Term Loan Due 2020 [Member]
USD ($)
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Number Of interest rate swaps
5 
 
 
 
 
Derivative, notional amount
 
€ 300.0 
 
$ 1,173.0 
 
Derivative, maturity date
 
 
Sep. 29, 2017 
 
 
Derivative, cap interest rate
 
1.50% 
 
 
 
Debt instrument, unamortized premium
 
 
 
 
$ 3.1 
Segments - Reconciliation of Revenue from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Segment
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Number of operating segments
2 
 
 
Net sales
$ 4,073.5 
$ 4,087.2 
$ 4,361.7 
Performance Coatings [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
2,403.2 
2,385.1 
2,585.0 
Performance Coatings [Member] |
Refinish [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
1,684.4 
1,702.0 
1,850.8 
Performance Coatings [Member] |
Industrial [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
718.8 
683.1 
734.2 
Transportation Coatings [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
1,670.3 
1,702.1 
1,776.7 
Transportation Coatings [Member] |
Light Vehicle [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
1,337.7 
1,310.6 
1,384.5 
Transportation Coatings [Member] |
Commercial Vehicle [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
$ 332.6 
$ 391.5 
$ 392.2 
Segments - Schedule of Segment Reporting Information, by Segment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
Net sales
$ 4,073.5 
$ 4,087.2 
$ 4,361.7 
Equity in earnings in unconsolidated affiliates
0.2 
1.2 
(1.4)
Adjusted EBITDA
907.1 
867.2 
840.5 
Investment in unconsolidated affiliates
13.6 
12.4 
14.3 
Performance Coatings [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net sales
2,403.2 
2,385.1 
2,585.0 
Equity in earnings in unconsolidated affiliates
(0.2)
0.6 
(1.2)
Adjusted EBITDA
554.4 
539.1 
547.6 
Investment in unconsolidated affiliates
2.5 
4.0 
7.2 
Transportation Coatings [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net sales
1,670.3 
1,702.1 
1,776.7 
Equity in earnings in unconsolidated affiliates
0.4 
0.6 
(0.2)
Adjusted EBITDA
352.7 
328.1 
292.9 
Investment in unconsolidated affiliates
$ 11.1 
$ 8.4 
$ 7.1 
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
Income before income taxes
 
 
$ 87,400,000 
$ 161,200,000 
$ 36,800,000 
Interest expense, net
 
 
178,200,000 
196,500,000 
217,700,000 
Depreciation and amortization
 
 
(322,100,000)
(307,700,000)
(308,700,000)
Adjusted EBITDA
 
 
587,700,000 
665,400,000 
563,200,000 
Debt extinguishment and refinancing related costs
 
 
97,600,000 
2,500,000 
6,100,000 
Foreign exchange remeasurement losses
 
 
30,600,000 
93,700,000 
81,200,000 
Long-term employee benefit plan adjustments
 
 
1,500,000 
(300,000)
(600,000)
Termination benefits and other employee related costs
 
 
61,800,000 
36,600,000 
18,400,000 
Consulting and advisory fees
 
 
10,400,000 
23,900,000 
36,300,000 
Transition-related costs
 
 
0 
(3,400,000)
101,800,000 
Offering and transactional costs
 
 
6,000,000 
(1,500,000)
22,300,000 
Stock-based compensation
 
 
41,100,000 
30,200,000 
8,000,000 
Other Adjustments
 
 
5,000,000 
(5,800,000)
6,000,000 
Dividends in respect of noncontrolling interest
 
 
(3,000,000)
(4,700,000)
(2,200,000)
Asset impairments
 
 
68,400,000 
30,600,000 
0 
Adjusted Earnings Before Interest Tax Depreciation And Amortization
 
 
907,100,000 
867,200,000 
840,500,000 
Loss on extinguishment of debt
 
 
97,600,000 
2,500,000 
6,100,000 
Refinancing costs and gains (losses) on extinguishment of debt
 
 
88,000,000 
 
3,100,000 
Stock-based compensation attributable to accelerated vesting
 
 
 
8,200,000 
 
Impairment of real estate investment
10,500,000 
30,600,000 
10,500,000 
30,600,000 
0 
Operating asset impairment
 
 
57,900,000 
0 
0 
2013 Plan [Member]
 
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
Stock-based compensation attributable to accelerated vesting
 
 
 
8,200,000 
 
Subsidiaries [Member]
 
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
Exchange gains (losses)
 
 
(23,500,000)
(51,500,000)
11,900,000 
Impairment of real estate investment
 
 
10,500,000 
30,600,000 
 
Operating asset impairment
 
 
57,900,000 
 
0 
Term Loans [Member]
 
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
Loss on extinguishment of debt
 
 
$ 9,600,000 
$ 2,500,000 
$ 3,000,000 
Segments - Schedule of Revenue from External Customers and Long-lived Assets, by Geographical Areas (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
$ 4,073.5 
$ 4,087.2 
$ 4,361.7 
Long-lived assets
1,315.7 
1,382.9 
 
North America [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
1,431.4 
1,371.9 
1,307.8 
Long-lived assets
419.3 
449.1 
 
EMEA [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
1,455.3 
1,425.3 
1,672.0 
Long-lived assets
456.9 
493.2 
 
Asia Pacific [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
723.9 
717.4 
715.0 
Long-lived assets
248.0 
234.5 
 
Latin America [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
462.9 
572.6 
666.9 
Long-lived assets
191.5 
206.1 
 
CHINA
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Long-lived assets
204.0 
194.7 
 
CHINA |
Sales Revenue, Net [Member] |
Geographic Concentration Risk [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Concentration risk, percentage
13.00% 
13.00% 
11.00% 
GERMANY
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Long-lived assets
262.2 
280.4 
 
GERMANY |
Sales Revenue, Net [Member] |
Geographic Concentration Risk [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Concentration risk, percentage
9.00% 
9.00% 
10.00% 
MEXICO |
Sales Revenue, Net [Member] |
Geographic Concentration Risk [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Concentration risk, percentage
6.00% 
6.00% 
6.00% 
CANADA
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Long-lived assets
20.0 
20.7 
 
CANADA |
Sales Revenue, Net [Member] |
Geographic Concentration Risk [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Concentration risk, percentage
4.00% 
3.00% 
3.00% 
BRAZIL
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Long-lived assets
$ 94.9 
$ 88.5 
 
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
$ (269.3)
 
 
Other comprehensive loss, net of tax
(81.2)
(169.6)
(142.0)
Accumulated other comprehensive income (loss), ending balance
(350.4)
(269.3)
 
Unrealized Currency Translation Adjustments
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
(232.8)
(72.1)
24.3 
Current year deferrals to AOCI
(59.4)
(160.7)
(96.4)
Reclassifications from AOCI to Net income
0 
0 
0 
Other comprehensive loss, net of tax
(59.4)
(160.7)
(96.4)
Accumulated other comprehensive income (loss), ending balance
(292.2)
(232.8)
(72.1)
Pension Plan Adjustments
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
(33.4)
(31.2)
7.5 
Current year deferrals to AOCI
(22.3)
(4.3)
(29.7)
Reclassifications from AOCI to Net income
(0.9)
2.1 
(9.0)
Other comprehensive loss, net of tax
(23.2)
(2.2)
(38.7)
Accumulated other comprehensive income (loss), ending balance
(56.6)
(33.4)
(31.2)
Unrealized Gain (Loss) on Securities
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
0.1 
(0.2)
(0.9)
Current year deferrals to AOCI
0.3 
0.3 
0.7 
Reclassifications from AOCI to Net income
0 
0 
0 
Other comprehensive loss, net of tax
0.3 
0.3 
0.7 
Accumulated other comprehensive income (loss), ending balance
0.4 
0.1 
(0.2)
Unrealized Gain (Loss) on Derivatives
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
(3.2)
0.2 
3.1 
Current year deferrals to AOCI
(2.5)
0.6 
3.6 
Reclassifications from AOCI to Net income
3.7 
(4.0)
(6.5)
Other comprehensive loss, net of tax
1.2 
(3.4)
(2.9)
Accumulated other comprehensive income (loss), ending balance
(2.0)
(3.2)
0.2 
Accumulated Other Comprehensive Income
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
(269.3)
(103.3)
34.0 
Current year deferrals to AOCI
(83.9)
(164.1)
(121.8)
Reclassifications from AOCI to Net income
2.8 
(1.9)
(15.5)
Other comprehensive loss, net of tax
(81.1)
(166.0)
(137.3)
Accumulated other comprehensive income (loss), ending balance
$ (350.4)
$ (269.3)
$ (103.3)
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Cumulative pension and other postretirement benefit plans, tax benefits
$ 19.1 
$ 13.4 
$ 13.4 
Cumulative unrealized gain (loss) on derivatives, tax
(1.1)
(1.9)
0.2 
Pension Plan [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Recognized gain (loss) due to curtailments
$ 1.1 
$ 0 
$ 7.3 
Venezuela (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
Operating asset impairment
 
 
$ 57,900,000 
$ 0 
$ 0 
Real estate investment property
 
 
10,900,000 
 
 
Impairment of real estate investment
10,500,000 
30,600,000 
10,500,000 
30,600,000 
0 
Assets
 
 
5,854,800,000 
5,830,100,000 
 
Liabilities
 
 
4,597,200,000 
4,688,900,000 
 
Net sales
 
 
4,073,500,000 
4,087,200,000 
4,361,700,000 
Operating income (loss)
 
 
408,300,000 
468,900,000 
369,500,000 
Performance Coatings [Member]
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
Operating asset impairment
 
 
30,600,000 
 
 
Net sales
 
 
2,403,200,000 
2,385,100,000 
2,585,000,000 
Transportation Coatings [Member]
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
Operating asset impairment
 
 
27,300,000 
 
 
Real estate investment property
 
 
21,500,000 
 
 
Net sales
 
 
1,670,300,000 
1,702,100,000 
1,776,700,000 
Subsidiaries [Member]
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
Gains on currency devaluation
 
 
 
53,200,000 
17,000,000 
Exchange gains (losses)
 
 
(23,500,000)
(51,500,000)
11,900,000 
Operating asset impairment
 
 
57,900,000 
 
0 
Impairment of real estate investment
 
 
10,500,000 
30,600,000 
 
Assets
 
 
82,700,000 
152,900,000 
 
Liabilities
 
 
42,300,000 
42,200,000 
 
Non-monetary assets, net
 
 
34,800,000 
112,400,000 
 
Net sales
 
 
50,800,000 
131,200,000 
136,500,000 
Operating income (loss)
 
 
36,500,000 
63,000,000 
60,000,000 
Net Income (loss)
 
 
68,500,000 
32,000,000 
52,600,000 
Subsidiaries [Member] |
Subsidiary of Common Parent [Member]
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
Liabilities
 
 
32,800,000 
25,900,000 
 
Subsidiaries [Member] |
Property, Plant and Equipment [Member]
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
Operating asset impairment
 
 
8,600,000 
 
 
Subsidiaries [Member] |
Customer Lists [Member]
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
Operating asset impairment
 
 
$ 49,300,000 
 
 
Quarterly Financial Information (Unaudited) (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Total revenue
$ 1,034,600,000 
$ 1,029,100,000 
$ 1,072,100,000 
$ 961,600,000 
$ 1,009,600,000 
$ 1,005,100,000 
$ 1,101,100,000 
$ 997,500,000 
$ 4,097,400,000 
$ 4,113,300,000 
$ 4,391,500,000 
Cost of goods sold
641,800,000 
630,400,000 
649,000,000 
606,400,000 
639,200,000 
628,600,000 
679,700,000 
649,800,000 
2,527,600,000 
2,597,300,000 
2,897,200,000 
Net income (loss)
(34,400,000)
(3,100,000)
53,300,000 
31,800,000 
39,100,000 
36,400,000 
(24,300,000)
46,700,000 
47,600,000 
97,900,000 
34,700,000 
Net income (loss) attributable to controlling interests
(36,500,000)
(4,300,000)
51,700,000 
30,900,000 
38,600,000 
35,100,000 
(25,100,000)
45,100,000 
41,800,000 
93,700,000 
27,400,000 
Basic net income per share (in dollars per share)
$ (0.15)
$ (0.02)
$ 0.22 
$ 0.13 
$ 0.16 
$ 0.15 
$ (0.11)
$ 0.20 
$ 0.18 
$ 0.40 
$ 0.12 
Diluted net income per share (in dollars per share)
$ (0.15)
$ (0.02)
$ 0.21 
$ 0.13 
$ 0.16 
$ 0.15 
$ (0.11)
$ 0.19 
$ 0.17 
$ 0.39 
$ 0.12 
Impairment of real estate investment
 
 
10,500,000 
 
 
 
30,600,000 
 
10,500,000 
30,600,000 
0 
Operating asset impairment
 
 
 
 
 
 
 
 
57,900,000 
0 
0 
Restructuring Costs
36,600,000 
 
 
 
 
 
 
 
 
 
 
Adjustments for New Accounting Principle, Early Adoption [Member]
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$ (10,700,000)
$ 48,500,000 
$ 29,700,000 
 
 
 
 
 
 
 
Diluted net income per share (in dollars per share)
 
$ (0.04)
$ 0.20 
$ 0.12 
 
 
 
 
 
 
 
Schedule II (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Allowance for Doubtful Accounts [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Year
$ 10.7 
$ 9.9 
$ 6.5 
Additions
3.4 
4.9 
5.1 
Deductions
(0.4)
(4.1)
(1.7)
Balance at End of Year
13.7 
10.7 
9.9 
Valuation Allowance for Deferred Tax Assets [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Year
127.8 
101.9 
63.4 
Additions
9.6 
34.4 
44.4 
Deductions
(2.0)
(8.5)
(5.9)
Balance at End of Year
$ 135.4 
$ 127.8 
$ 101.9