AXALTA COATING SYSTEMS LTD., 10-K filed on 2/22/2018
Annual Report
Document and Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Feb. 15, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]
 
 
 
Entity Registrant Name
Axalta Coating Systems Ltd. 
 
 
Trading Symbol
AXTA 
 
 
Entity Central Index Key
0001616862 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)
FY 
 
 
Amendment Flag
false 
 
 
Entity Common Stock, Shares Outstanding
 
245,076,781 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 7,729.3 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]
 
 
 
Net sales
$ 4,352.9 
$ 4,068.8 
$ 4,083.9 
Other revenue
24.1 
23.9 
26.1 
Total revenue
4,377.0 
4,092.7 
4,110.0 
Cost of goods sold
2,779.6 
2,527.6 
2,597.3 
Selling, general and administrative expenses
997.7 
962.5 
914.8 
Venezuela asset impairment and deconsolidation charge
70.9 
57.9 
0 
Research and development expenses
65.3 
57.7 
51.6 
Amortization of acquired intangibles
101.2 
83.4 
80.7 
Income from operations
362.3 
403.6 
465.6 
Interest expense, net
147.0 
178.2 
196.5 
Other expense, net
25.7 
142.7 
111.2 
Income before income taxes
189.6 
82.7 
157.9 
Provision for income taxes
141.9 
38.1 
62.1 
Net income
47.7 
44.6 
95.8 
Less: Net income attributable to noncontrolling interests
11.0 
5.8 
4.2 
Net income attributable to controlling interests
$ 36.7 
$ 38.8 
$ 91.6 
Basic net income per share (in dollars per share)
$ 0.15 
$ 0.16 
$ 0.39 
Diluted net income per share (in dollars per share)
$ 0.15 
$ 0.16 
$ 0.38 
Basic weighted average shares outstanding (in dollars per share)
240.4 
238.1 
233.8 
Diluted weighted average shares outstanding (in dollars per share)
246.1 
244.4 
239.7 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
Net income
$ 47.7 
$ 44.6 
$ 95.8 
Other comprehensive income (loss), before tax:
 
 
 
Foreign currency translation adjustments
85.6 
(59.5)
(164.3)
Unrealized gain on securities
0.4 
0.3 
0.3 
Unrealized gain (loss) on derivatives
0.9 
2.0 
(5.5)
Unrealized gain (loss) on pension and other benefit plan obligations
31.3 
(28.9)
(2.2)
Other comprehensive income (loss), before tax
118.2 
(86.1)
(171.7)
Income tax provision (benefit) related to items of other comprehensive income
6.6 
(4.9)
(2.1)
Other comprehensive income (loss), net of tax
111.6 
(81.2)
(169.6)
Comprehensive income (loss)
159.3 
(36.6)
(73.8)
Less: Comprehensive income attributable to noncontrolling interests
13.2 
5.7 
0.6 
Comprehensive income (loss) attributable to controlling interests
$ 146.1 
$ (42.3)
$ (74.4)
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 769.8 
$ 535.4 
Restricted cash
3.1 
2.7 
Accounts and notes receivable, net
870.2 
801.9 
Inventories
608.6 
529.7 
Prepaid expenses and other
63.9 
50.3 
Total current assets
2,315.6 
1,920.0 
Property, plant and equipment, net
1,388.6 
1,315.7 
Goodwill
1,271.2 
964.1 
Identifiable intangibles, net
1,428.2 
1,130.3 
Other assets
428.6 
536.1 
Total assets
6,832.2 
5,866.2 
Current liabilities:
 
 
Accounts payable
554.9 
474.2 
Current portion of borrowings
37.7 
27.9 
Other accrued liabilities
489.6 
440.0 
Total current liabilities
1,082.2 
942.1 
Long-term borrowings
3,877.9 
3,236.0 
Accrued pensions
279.1 
249.1 
Deferred income taxes
152.9 
160.2 
Other liabilities
32.3 
32.2 
Total liabilities
5,424.4 
4,619.6 
Commitments and contingent liabilities (Note 8)
   
   
Shareholders’ equity
 
 
Common shares, $1.00 par, 1,000.0 shares authorized, 243.9 and 240.5 shares issued and outstanding at December 31, 2017 and 2016, respectively
242.4 
239.3 
Capital in excess of par
1,354.5 
1,294.3 
Accumulated deficit
(21.4)
(58.1)
Treasury shares
(58.4)
0 
Accumulated other comprehensive loss
(241.0)
(350.4)
Total Axalta shareholders’ equity
1,276.1 
1,125.1 
Noncontrolling interests
131.7 
121.5 
Total shareholders’ equity
1,407.8 
1,246.6 
Total liabilities and shareholders’ equity
$ 6,832.2 
$ 5,866.2 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]
 
 
Common stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
Common shares, shares authorized
1,000.0 
1,000.0 
Common shares, shares issued
243.9 
240.5 
Common shares, shares outstanding
243.9 
240.5 
Treasury shares
2.0 
0 
Consolidated Statement of Changes in Stockholders Equity (USD $)
In Millions, unless otherwise specified
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss
Noncontrolling Interest [Member]
Total stockholders’ equity, beginning balance at Dec. 31, 2014
$ 1,106.1 
$ 229.8 
$ 1,144.7 
$ 0 
$ (232.4)
$ (103.3)
$ 67.3 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
Net income
95.8 
 
 
 
91.6 
 
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 income (loss)
(73.8)
 
 
 
91.6 
(166.0)
0.6 
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
1,133.2 
237.0 
1,238.8 
0 
(140.8)
(269.3)
67.5 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
Net income
44.6 
 
 
 
38.8 
 
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 income (loss)
(36.6)
 
 
 
38.8 
(81.1)
5.7 
Cumulative effect of an accounting change
43.9 
 
 
 
43.9 
 
 
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
1,246.6 
239.3 
1,294.3 
0 
(58.1)
(350.4)
121.5 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
Net income
47.7 
 
 
 
36.7 
 
11.0 
Net unrealized gain (loss) on securities, net of tax
0.4 
 
 
 
 
0.4 
 
Net realized and unrealized gain (loss) on derivatives, net of tax
0.4 
 
 
 
 
0.4 
 
Long-term employee benefit plans, net of tax
25.2 
 
 
 
 
25.2 
 
Foreign currency translation, net of tax of $0.0 million
85.6 
 
 
 
 
83.4 
2.2 
Comprehensive income (loss)
159.3 
 
 
 
36.7 
109.4 
13.2 
Recognition of stock-based compensation
38.5 
 
38.5 
 
 
 
 
Exercises of stock options and associated tax benefits
24.8 
3.1 
21.7 
 
 
 
 
Treasury share repurchase
(58.4)
 
 
(58.4)
 
 
 
Dividends declared to noncontrolling interests
(3.0)
 
 
 
 
 
(3.0)
Total stockholders’ equity, ending balance at Dec. 31, 2017
$ 1,407.8 
$ 242.4 
$ 1,354.5 
$ (58.4)
$ (21.4)
$ (241.0)
$ 131.7 
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
 
 
 
Available for sale securities, tax
$ 0 
$ 0 
$ 0 
Derivatives qualifying as hedges, tax
0.5 
0.8 
2.1 
Pension, tax
6.1 
5.7 
0 
Foreign currency translation adjustment, tax
$ 0 
$ 0 
$ 0 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Operating activities:
 
 
 
Net income
$ 47.7 
$ 44.6 
$ 95.8 
Adjustment to reconcile net income to cash provided by operating activities:
 
 
 
Depreciation and amortization
347.5 
322.1 
307.7 
Amortization of financing costs and original issue discount
8.0 
17.8 
20.6 
Debt extinguishment and refinancing related costs
13.4 
97.6 
2.5 
Deferred income taxes
91.7 
(15.9)
(6.2)
Realized and unrealized foreign exchange (gains) losses, net
(3.6)
35.5 
93.7 
Stock-based compensation
38.5 
41.1 
30.2 
Asset impairments
7.6 
68.4 
30.6 
Venezuela deconsolidation charge
70.9 
0 
0 
Other non-cash, net
4.4 
(1.9)
12.5 
Changes in operating assets and liabilities:
 
 
 
Trade accounts and notes receivable
(15.2)
(67.8)
(61.1)
Inventories
(19.9)
(1.7)
(35.2)
Prepaid expenses and other
(84.9)
(64.5)
(65.6)
Accounts payable
39.8 
32.3 
(6.7)
Other accrued liabilities
6.7 
58.7 
13.4 
Other liabilities
(12.6)
(7.0)
(22.4)
Cash provided by operating activities
540.0 
559.3 
409.8 
Investing activities:
 
 
 
Business acquisitions (net of cash acquired)
(564.4)
(114.8)
(29.6)
Purchase of property, plant and equipment
(125.0)
(136.2)
(138.1)
Reduction of cash due to Venezuela deconsolidation
(4.3)
0 
0 
Other investing activities, net
4.1 
(6.0)
1.5 
Cash used for investing activities
(689.6)
(257.0)
(166.2)
Financing activities:
 
 
 
Proceeds from short-term borrowings
0 
0.2 
2.0 
Proceeds from long-term borrowings
483.6 
1,604.3 
0 
Payments on short-term borrowings
(14.1)
(8.6)
(16.9)
Payments on long-term borrowings
(50.0)
(1,755.7)
(127.3)
Financing-related costs
(10.4)
(86.3)
0 
Dividends paid to noncontrolling interests
(3.0)
(3.0)
(4.7)
Purchase of treasury stock
(58.4)
0 
0 
Proceeds from option exercises
24.8 
16.7 
62.4 
Deferred acquisition-related consideration
(5.2)
0 
0 
Other financing activities
0 
(0.2)
(0.2)
Cash provided by (used for) financing activities
367.3 
(232.6)
(84.7)
Increase in cash and cash equivalents
217.7 
69.7 
158.9 
Effect of exchange rate changes on cash
17.1 
(19.3)
(58.0)
Cash at beginning of period
538.1 
487.7 
386.8 
Cash at end of period
772.9 
538.1 
487.7 
Cash and cash equivalents
769.8 
535.4 
485.0 
Restricted cash
3.1 
2.7 
2.7 
Cash paid during the year for:
 
 
 
Interest, net of amounts capitalized
130.1 
169.4 
172.5 
Income taxes, net of refunds
61.7 
39.2 
52.4 
Non-cash investing activities:
 
 
 
Accrued capital expenditures
$ 30.2 
$ 28.7 
$ 33.8 
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 57.5 million 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, 2017 and 2016 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, 2017, 2016 and 2015 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.
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.
Venezuela Deconsolidation
During the year ended December 31, 2017, we deconsolidated our Venezuelan subsidiary from our consolidated financial statements and began accounting for our investment in our 100% owned Venezuelan subsidiary using the cost method of accounting. See Note 25 for additional information.
Correction of Immaterial Errors to Prior Period Financial Statements
During the year ended December 31, 2017, the Company identified and corrected errors that affected previously-issued consolidated financial statements. Based on an analysis of Accounting Standards Codification (“ASC”) 250 - Accounting Changes and Error Corrections (“ASC 250”), Staff Accounting Bulletin 99 - Materiality (“SAB 99”) and Staff Accounting Bulletin 108 - Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company determined that these corrections were immaterial to the previously-issued financial statements. However, given the significance of the cumulative adjustments on the financial results, we have revised our historical presentation of certain amounts in the consolidated financial statements which are described further below.
Revenue Corrections
The Company recognizes revenue from the sale of products to its customers when risk of loss and ownership of the product transfers to the customer. Ownership transfers either upon shipment of the product or when the product is delivered. In regard to our refinish end-market, risk of loss passes upon the sale to its distribution customers. Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions can be given to our distribution customers and certain collision repair body shops. The Company previously recorded these additional rebates and pricing concessions at the time of sale from the distributor to the collision repair body shops. The Company has concluded those rebates and pricing concessions should have been estimated and recorded as a reduction to net sales upon the sale to our distribution customers.
The Company concluded that its accounting policy for the sale to distributors is appropriate as the sales price is fixed or determinable at the time ownership transfers to these distributors, based on the Company’s ability to make a reasonable estimate of future certain pricing or rebates concessions at the time of shipment.
The Company has corrected the errors in the timing of revenue recognition by estimating those additional rebates and pricing concessions at the time of sale to distribution customers and reducing net sales by $4.7 million ($3.0 million after tax) and $3.3 million ($2.1 million after tax) for the years ended December 31, 2016 and 2015, respectively. Diluted earnings per share was reduced by $0.01 for each of these years. The after-tax impacts noted above had the equivalent impacts on our consolidated statements of comprehensive income (loss) for the respective periods. The cumulative impact on the consolidated balance sheet at December 31, 2016 resulted in increases of $22.4 million, $3.1 million, $8.3 million and $11.0 million to other accrued liabilities, goodwill, other assets and accumulated deficit, respectively, as a result of these prior period corrections. Amounts had no impact on the Company’s total cash flows from operations as reported within the historical consolidated statements of cash flows.
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, including most commonly the excess earnings method for customer relationships, relief from royalty method for technology and trademarks, cost method for inventory and a combination of cost and market methods for property, plant and equipment, as applicable.
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 from the sale of products to our customers when risk of loss and ownership of the product transfers to the customer. Ownership transfers either upon shipment of the product or when the product is delivered.
For a majority of our product sales, risk or loss and ownership 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. In regard to our refinish end-market, risk of loss passes upon the sale to our distribution customers. Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions may be given to our distribution customers and certain collision repair body shops, which we estimate and record as a reduction to net sales upon the sale to our distribution customers. 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, 2017 and 2016, $173.0 million and $170.8 million, respectively, were capitalized within other assets on the consolidated balance sheets. For the years ended December 31, 2017, 2016 and 2015, $65.0 million, $53.5 million and $50.6 million, respectively, were amortized and reflected as reductions of net sales in the consolidated statements 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 (loss) ("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 16 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. We may elect to bypass the qualitative assessment for some or all of our reporting units and indefinite-lived intangible assets and perform a two-step quantitative test.
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, 2017, 2016 and 2015, 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 AOCI.
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 have elected 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 But Not Yet Adopted
In March 2017, the FASB issued Accounting Standard Update ("ASU") 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The impacts to the accompanying consolidated statement of operations for the years ended December 31, 2017 and 2016, as will be presented in our Annual Report on Form 10-K for the year ended December 31, 2018, will result in reclassifications from cost of goods sold and selling, general and administrative expense to other expense, net. These reclassifications will not have a material impact to the individual line items on the consolidated statement of operations for the impacted periods.
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 requiring 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 in our reporting units.
In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business", which sets forth the accounting guidance that assists in the determination of whether a set of transferred assets and activities is a business. This new guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business; whereas, if the threshold is not met, the entity evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue guidance. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. This standard is expected to have a prospective impact on our assessment of future acquisitions to determine whether the acquired entity requires accounting as an acquired asset (or group of similar identifiable assets) or as a business combination.
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. Total assets and total liabilities will increase in the period of adoption.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. Subsequent updates applicable to the revenue recognition standard, including ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing", provide narrow scope improvements and clarifications. This standard was initially intended to be 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 previous 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 were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We have elected to implement the standard using the modified retrospective method whereby, for contracts which we conclude our performance obligation has been met under the terms of this standard as of the date of initial application, January 1, 2018, we will record a one-time catch up of the net earnings impact to retained earnings on our consolidated balance sheet and consolidated statement of changes in shareholders’ equity of approximately $12 million. The impacts to be reflected at this date represent the net income attributable to certain arrangements primarily within our Transportation Coatings segment for which we determine our performance obligation has been satisfied at the point effective control over inventory has transferred to the customer upon delivery under this standard, as compared to consumption under current GAAP. The election to implement this standard using the modified retrospective method will also require our future disclosures to include the amount by which each financial statement line item is affected as compared with these line items reported under current GAAP to ensure comparability with historical financial statements. We have reviewed our sales contracts and practices as compared to the new guidance and have concluded on the population of affected contracts and implementation plan, as well as our assessment of procedural and policy requirements related to the provisions of this standard. Additionally, under the provisions of this standard, certain costs currently reported in selling, general and administrative costs will be reported within cost of goods sold on the consolidated statements of operations, as they represent costs incurred in satisfaction of performance obligations. Such items will not impact pre-tax operating results. We are currently evaluating the expanded disclosures necessary to be in compliance with this standard, including expanded disclosures regarding significant judgments and estimates involved in the determination of the transaction price, variable consideration and timing of satisfaction of performance obligations.
Acquisitions and Divestitures
Acquisitions and Divestitures
ACQUISITIONS AND DIVESTITURES
Acquisition of Industrial Wood Business
On June 1, 2017, the Company completed its acquisition from The Valspar Corporation ("Valspar") of certain assets constituting its North American Industrial Wood Coatings business (the "Industrial Wood" business), for a purchase price of $420.0 million, subject to working capital adjustments. Axalta and Valspar finalized the working capital adjustments to the purchase price which resulted in an increase of $10.3 million to $430.3 million (the "Industrial Wood Acquisition"). The Industrial Wood Acquisition was funded through the refinancing of our Dollar Term Loans discussed further at Note 20.
The Industrial Wood business is one of the leading providers of coatings for OEM and aftermarket industrial wood markets, including building products, cabinets, flooring and furniture, in North America. The Industrial Wood Acquisition was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date.
At December 31, 2017, we have not finalized the purchase accounting related to the Industrial Wood Acquisition and these amounts represent preliminary values. The allocation of the purchase price may be modified up to one year from the date of the acquisition as more information is obtained about the fair value of assets acquired and liabilities assumed. After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.3 million, which was comprised of the following:
 
June 1, 2017 (As Initially Reported)
Measurement Period Adjustments
June 1, 2017
(As Adjusted)
Accounts and notes receivable—trade
$
23.3

$
—

$
23.3

Inventories
24.9

(0.2
)
24.7

Prepaid expenses and other
0.2

—

0.2

Property, plant and equipment
23.0

0.1

23.1

Identifiable intangibles
254.2

4.9

259.1

Accounts payable
(22.4
)
0.2

(22.2
)
Other accrued liabilities
(5.1
)
0.4

(4.7
)
Net assets acquired before goodwill on acquisition
298.1

5.4

303.5

Goodwill on acquisition
132.6

(5.8
)
126.8

Net assets acquired
$
430.7

$
(0.4
)
$
430.3


Goodwill was recognized as the excess of the purchase price over the net identifiable assets recognized. The goodwill is primarily attributed to our assembled workforce and the anticipated future economic benefits and is recorded within our industrial end-market in our Performance Coatings segment. The goodwill recognized at December 31, 2017 that is expected to be deductible for income tax purposes is $126.8 million.
The Company incurred and expensed acquisition-related transaction costs on the Industrial Wood Acquisition of $5.3 million, included within selling, general and administrative expense on the consolidated statements of operations for the year ended December 31, 2017.
The fair value associated with identifiable intangible assets was $259.1 million, comprised of $34.6 million in technology (inclusive of in-process research and development), $8.0 million in trademarks, $203.0 million in customer relationships and $13.5 million associated with favorable contractual arrangements which have been determined to have a fair value. The definite-lived intangible assets will be amortized over an average term of approximately 19 years.
Supplemental Pro Forma Information
The Company's net sales and income before income taxes for the year ended December 31, 2017 include net sales of $146.1 million and pre-tax income of $2.4 million related to the Industrial Wood business. The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016:
 
For the years ended
 (in millions, except per share data)
December 31, 2017
December 31, 2016
Net sales
$
4,454.2

$
4,293.1

Net income
$
55.0

$
45.9

Net income attributable to controlling interests
$
44.0

$
40.1

Net income per share (Basic)
$
0.18

$
0.17

Net income per share (Diluted)
$
0.18

$
0.16


The 2017 supplemental pro forma net income was adjusted to exclude $5.3 million ($3.3 million, net of pro forma income tax impact) of acquisition-related costs incurred in 2017 and $2.8 million ($1.8 million, net of pro forma income tax impact) of non-recurring expense related to the fair market value adjustment to acquisition date inventory. The unaudited pro forma consolidated information does not necessarily reflect the actual results that would have occurred had the acquisition taken place on January 1, 2016, nor is it meant to be indicative of future results of operations of the combined companies under the ownership and operation of the Company.
Other Acquisitions
During the year ended December 31, 2017, we acquired 100% of eight businesses, including the acquisition of the Industrial Wood business. The other seven acquisitions included two North American and five European businesses which have operations in both our refinish and industrial end-markets, within our Performance Coatings segment. All but one of these acquisitions were accounted for as business combinations and the overall impacts to our consolidated financial statements were not considered to be material, either individually or in the aggregate. The fair value associated with identifiable intangible assets from the 2017 Acquisitions was $322.3 million, comprised of $47.4 million in technology, $20.2 million in trademarks, $239.1 million in customer relationships and $15.6 million in other intangibles primarily consisting of favorable contractual arrangements which have been determined to have a fair value. The total fair value of consideration paid or payable, net of cash assumed, on the 2017 Acquisitions was $573.4 million, including acquisition date fair value of contingent consideration of $5.7 million.
At December 31, 2017, we have not finalized the purchase accounting related to the 2017 Acquisitions and these amounts 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.
Goodwill and Identifiable Intangible Assets
Goodwill and Identifiable Intangible Assets
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
Goodwill
The following table shows changes in the carrying amount of goodwill from December 31, 2015 to December 31, 2017 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
December 31, 2015
$
869.0

$
62.3

$
931.3

Goodwill from acquisitions
64.2

15.5

79.7

Foreign currency translation
(43.8
)
(3.1
)
(46.9
)
December 31, 2016
$
889.4

$
74.7

$
964.1

Goodwill from acquisitions
207.2

—

207.2

Purchase accounting adjustments
(15.2
)
—

(15.2
)
Foreign currency translation
107.8

7.3

115.1

December 31, 2017
$
1,189.2

$
82.0

$
1,271.2


 Identifiable Intangible Assets
The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
December 31, 2017
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
498.0

$
(213.6
)
$
284.4

10.5
Trademarks—indefinite-lived
277.2

—

277.2

Indefinite
Trademarks—definite-lived
102.6

(17.7
)
84.9

15.9
Customer relationships
945.1

(176.8
)
768.3

19.0
Other
16.6

(3.2
)
13.4

4.8
Total
$
1,839.5

$
(411.3
)
$
1,428.2

 
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
Other
2.4

(1.7
)
0.7

4.6
Total
$
1,420.3

$
(290.0
)
$
1,130.3

 

During the year ended December 31, 2017, we changed certain indefinite-lived trademark intangibles to definite-lived intangible assets. The change was made as a result of decisions regarding our anticipated future use of these trademarks. During this period, we commenced amortizing the assets on a straight-line basis over a 20-year useful life.
Activity related to in-process research and development projects, classified within technology assets, for the years ended December 31, 2016 and 2017 is as follows:
In Process Research and Development
Activity
Balance at December 31, 2015
$
1.6

Completed
—

Abandoned
—

Acquired
—

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

Completed
—

Abandoned
(1.7
)
Acquired
2.3

Foreign currency translation
0.2

Balance at December 31, 2017
$
2.3


The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is:
2018
$
110.8

2019
$
109.5

2020
$
109.3

2021
$
108.7

2022
$
106.5

Restructuring
Restructuring
RESTRUCTURING
In accordance with the applicable guidance for ASC 712, 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. 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, 2017, 2016 and 2015:
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

Expense recorded
36.2

Payments made
(36.1
)
Foreign currency translation
6.8

Venezuela deconsolidation impact
(1.5
)
Balance at December 31, 2017
$
71.5


Restructuring charges incurred during the fourth quarter ended December 31, 2017 included actions to reduce operational costs through activities to rationalize our manufacturing footprint. The impact to earnings from accelerated depreciation related to these manufacturing assets for the year ended December 31, 2017 was $4.3 million. During the year ended December 31, 2017, we recorded impairment losses of $7.6 million associated with these manufacturing facilities based on market price estimates recorded within other expense, net.
Commitments and Contingencies
Commitments and Liabilities
COMMITMENTS AND CONTINGENCIES
Leases - Sales Leaseback Obligations
During the year December 31, 2017, we determined that a previous build-to-suit lease arrangement was to be treated as a sale-leaseback financing. The lessor's building costs will be depreciated over an estimated useful life, consistent with our other sale-leaseback financing identified during the year ended December 31, 2016, beginning at the commencement of the rental terms, at which point such lease assets recorded in property, plant and equipment had a corresponding offset within long-term borrowings. The table below reflects the total remaining cash payments related to both transactions during the rental term as of December 31, 2017:
 
Sale-leaseback obligations
2018
$
5.3

2019
5.4

2020
5.4

2021
5.5

2022
5.8

Thereafter
83.4

Total minimum payments
$
110.8


Leases - Other
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 $52.7 million, $48.0 million and $48.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.
At December 31, 2017, future minimum payments under non-cancelable operating leases were as follows:
 
Operating
Leases
2018
$
41.8

2019
26.6

2020
19.4

2021
14.9

2022
11.8

Thereafter
20.2

Total minimum payments
$
134.7


Guarantees
We guarantee certain of our customers’ obligations to third parties, whereby any default by our customers on their obligations could force us to make payments to the applicable creditors. At December 31, 2017 and 2016, we had outstanding bank guarantees of $15.2 million and $11.1 million, respectively, which expire between 2018 and 2022. We monitor the obligations to evaluate whether we have a liability at the balance sheet date, for which none existed as of December 31, 2017 and 2016.
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 us or against DuPont for which we assumed the liabilities through the Acquisition. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time.
The potential effects, if any, on the 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.
Long-term Employee Benefits
Long-term Employee Benefits
LONG-TERM EMPLOYEE BENEFITS
Defined Benefit Pensions and Other Long-Term Employee Benefit 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, 2017.
Other Long-Term Employee Benefits
In prior periods, we had certain long-term employee health care and life insurance benefits for certain eligible employees. These programs required contributions based on retiree-selected coverage levels for certain retirees. In conjunction with certain negative plan amendments completed in 2014, all liabilities and other comprehensive income associated with these other long-term employee benefit plans were reduced to zero at December 31, 2015. The $3.4 million net periodic benefit gain recorded during the year ended December 31, 2015 consisted of amortization of prior service credit of $3.7 million and settlement losses of $0.3 million. The discount rate used to determine the net periodic benefit gain during the year ended December 31, 2015 was 1.50%.
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, 2017 and 2016 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2017 and 2016 for our defined benefit pension plans:
 
Year Ended December 31,
 
2017
2016
Change in benefit obligation:
 
 
Projected benefit obligation at beginning of year
$
547.6

$
541.7

Service cost
9.0

10.7

Interest cost
13.8

15.1

Participant contributions
1.3

1.0

Actuarial losses (gains), net
(13.8
)
57.4

Plan curtailments, settlements and special termination benefits
(12.9
)
(2.0
)
Benefits paid
(23.3
)
(21.8
)
Business combinations and other adjustments
51.2

—

Currency translation adjustment
64.0

(54.5
)
Projected benefit obligation at end of year
636.9

547.6

Change in plan assets:
 
 
Fair value of plan assets at beginning of year
288.7

278.4

Actual return on plan assets
22.2

41.1

Employer contributions
27.4

27.0

Participant contributions
1.3

1.0

Benefits paid
(23.3
)
(21.8
)
Settlements
(13.9
)
(1.2
)
Business combinations and other adjustments
32.4

—

Currency translation adjustment
30.2

(35.8
)
Fair value of plan assets at end of year
365.0

288.7

Funded status, net
$
(271.9
)
$
(258.9
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
Other assets
$
19.2

$
0.3

Other accrued liabilities
(12.0
)
(10.1
)
Accrued pensions
(279.1
)
(249.1
)
Net amount recognized
$
(271.9
)
$
(258.9
)

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, 2017 and 2016. 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,
 
2017
2016
ABO
$
605.4

$
516.4

Plans with PBO in excess of plan assets:
 
 
PBO
$
401.2

$
542.6

ABO
$
370.0

$
511.6

Fair value plan assets
$
110.1

$
283.4

Plans with ABO in excess of plan assets:
 
 
PBO
$
393.3

$
488.2

ABO
$
364.9

$
461.3

Fair value plan assets
$
104.7

$
232.6


The pre-tax amounts not yet reflected in net periodic benefit cost and included in AOCI include the following related to defined benefit plans:
 
Year Ended December 31,
 
2017
2016
Accumulated net actuarial losses
$
(46.4
)
$
(76.6
)
Accumulated prior service credit
2.6

0.9

Total
$
(43.8
)
$
(75.7
)

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 AOCI into net periodic benefit cost during 2018 for the defined benefit plans is as follows:
 
2018
Amortization of net actuarial losses
$
(1.2
)
Amortization of prior service credit
0.1

Total
$
(1.1
)

Components of Net Periodic Benefit Cost
The following table sets forth the pre-tax components of net periodic benefit costs for our defined benefit plans for the years ended December 31, 2017, 2016 and 2015.
 
Year Ended December 31,
 
2017
2016
2015
Components of net periodic benefit cost and amounts recognized in comprehensive (income) loss:
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
$
9.0

$
10.7

$
12.0

Interest cost
13.8

15.1

16.9

Expected return on plan assets
(15.0
)
(12.6
)
(14.6
)
Amortization of actuarial loss, net
1.4

0.4

0.4

Amortization of prior service credit
—

—

(0.1
)
Curtailment gain
—

(1.1
)
—

Settlement (gain) loss
0.2

(0.5
)
0.5

Special termination benefit loss
1.0

0.2

—

Net periodic benefit cost
10.4

12.2

15.1

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
(20.6
)
27.7

(3.4
)
Amortization of actuarial loss, net
(1.4
)
(0.4
)
(0.4
)
Prior service (credit) cost
(1.2
)
—

2.7

Amortization of prior service credit
—

—

0.1

Curtailment gain
—

1.1

—

Settlement gain (loss)
(0.2
)
0.5

(0.5
)
Other adjustments
(7.9
)
—

—

Total (gain) loss recognized in other comprehensive (income) loss
(31.3
)
28.9

(1.5
)
Total recognized in net periodic benefit cost and comprehensive (income) loss
$
(20.9
)
$
41.1

$
13.6


Included in the other adjustments recognized in other comprehensive (income) loss was a pension plan adjustment related to the deconsolidation of our Venezuelan subsidiary and the corresponding write-off of the accumulated actuarial loss on our Venezuela pension plan. This resulted in a decrease of $8.5 million in AOCI ($5.9 million, net of tax), as discussed further in Note 25.
Assumptions
We used the following assumptions in determining the benefit obligations and net periodic benefit cost of our defined benefit plans:
 
2017
2016
2015
Weighted-average assumptions:
 
 
 
Discount rate to determine benefit obligation
2.13
%
2.52
%
3.05
%
Discount rate to determine net cost
2.52
%
3.05
%
3.23
%
Rate of future compensation increases to determine benefit obligation
2.69
%
3.07
%
3.03
%
Rate of future compensation increases to determine net cost
3.07
%
3.03
%
3.57
%
Rate of return on plan assets to determine net cost
4.73
%
4.75
%
5.21
%
The rate of future compensation increases to determine benefit obligation in 2016 and 2015 includes the impacts of inflationary assumptions of our now deconsolidated Venezuelan subsidiary, which are absent in the 2017 assumption.
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
2018
$
29.7

2019
$
32.2

2020
$
32.2

2021
$
31.1

2022
$
32.1

2023—2027
$
189.0

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 as a practical expedient 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
2017
2016
Target Allocation
Equity securities
25-30%
30-35%
25-30%
Debt securities
20-25%
35-40%
20-25%
Real estate
0-5%
0-5%
0-5%
Other
45-50%
25-30%
45-50%
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, 2017 and 2016, respectively.
 
Fair value measurements at
 
December 31, 2017
 
Total
Level 1
Level 2
Level 3
Asset Category:
 
 
 
 
Cash and cash equivalents
$
3.7

$
3.7

$
—

$
—

U.S. equity securities
33.3

33.0

—

0.3

Non-U.S. equity securities
76.4

73.4

1.2

1.8

Debt securities—government issued
44.6

33.1

7.3

4.2

Debt securities—corporate issued
32.8

17.2

13.1

2.5

Private market securities and other
141.2

2.7

2.8

135.7

Real estate investments
13.5

—

—

13.5

Total
$
345.5

$
163.1

$
24.4

$
158.0

Debt asset backed securities at NAV
10.9

 
 
 
Hedge funds at NAV
8.6

 
 
 
 
$
365.0

 
 
 
 
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—government issued
60.9

48.0

12.9

—

Debt—corporate issued
38.4

31.0

5.3

2.1

Private market securities and other
64.6

0.4

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

 
 
 

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, 2017 and 2016.
 
Level 3 assets
 
Total
Private
market
securities
Debt and equity
Real
estate investments
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

Realized (loss)
—

—

—

—

Change in unrealized gain
9.9

8.3

0.4

1.2

Purchases, sales, issues and settlements
70.6

63.3

6.2

1.1

Transfers in/(out) of Level 3
—

—

—

—

Ending balance at December 31, 2017
$
158.0

$
135.7

$
8.8

$
13.5


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 2018, the expected long-term rate of return is 4.47%.
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, 2017 we expect to contribute $16.2 million to our defined benefit plans during 2018. No plan assets are expected to be returned to the Company in 2018.
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 $45.1 million, $43.3 million and $36.7 million for the years ended December 31, 2017, 2016 and 2015, respectively.
Stock-based Compensation
Stock-based Compensation
STOCK-BASED COMPENSATION
During the years ended December 31, 2017, 2016 and 2015, we recognized $38.5 million, $41.1 million and $30.2 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 $12.1 million, $14.0 million and $10.7 million and for the years ended December 31, 2017, 2016 and 2015, 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 ownership interest in Axalta to below 50%, triggering a 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. We have elected to recognize forfeitures as they occur.
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.
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 2017, 2016 and 2015 were $7.69, $5.69 and $8.15 per share, respectively. Options granted have a three-year vesting period. Principal weighted average assumptions used in applying the Black-Scholes model were as follows:
 
2017 Grants
2016 Grants
2015 Grants
Expected Term
6.0 years
6.0 years

6.0 years

Volatility
21.75
%
21.63
%
22.19
%
Dividend Yield
—

—

—

Discount Rate
2.03
%
1.45
%
1.79
%
The expected term assumptions used for the grants mentioned in the above table were 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 was based upon the peer group since the Company 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, 2017 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, 2016
9.6

$
14.40

 
 
Granted
0.9

$
29.56

 
 
Exercised
(2.2
)
$
11.42

 
 
Forfeited
(0.2
)
$
28.29

 
 
Outstanding at December 31, 2017
8.1

$
16.54

 
 
Vested and expected to vest at December 31, 2017
8.1

$
16.54

$
128.3

6.52
Exercisable at December 31, 2017
6.3

$
13.25

$
119.9

5.96

Cash received by the Company upon exercise of options in 2017 was $24.8 million. Tax benefits on these exercises were $13.1 million. The intrinsic value of options exercised in 2017, 2016 and 2015 was $42.2 million, $42.5 million and $166.8 million, respectively.
The fair value of shares vested during 2017, 2016 and 2015 was $5.2 million, $3.4 million and $24.3 million, respectively.
At December 31, 2017, there was $4.0 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 1.3 years.
Restricted Stock Awards and Restricted Stock Units
During the year ended December 31, 2017, we issued 0.8 million shares of restricted stock awards and restricted stock units. A portion of these awards vests ratably over three years. Other awards granted to certain members of management cliff vest over two, three or four year periods and certain of these awards 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, 2017 is presented below:
 
Awards
(in millions)
Weighted-Average
Fair Value
Outstanding at December 31, 2016
2.3

$
29.18

Granted
0.8

$
30.10

Vested
(1.0
)
$
30.02

Forfeited
(0.2
)
$
27.21

Outstanding at December 31, 2017
1.9

$
29.32


At December 31, 2017, there was $18.2 million of unamortized expense relating to unvested restricted stock awards and restricted stock units that is expected to be amortized over a weighted average period of 1.5 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 2017 and 2016 was $30.1 million and $5.5 million, respectively. The total fair value of awards vested during 2017 and 2016 was $29.4 million and $6.2 million, respectively. No shares vested prior to 2016.
Performance Stock Awards and Performance Share Units
During the year ended December 31, 2017, 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 vests over a three-year service period and covers a three-year performance cycle starting at the beginning of the fiscal year in which the shares were granted.  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, 2017 is presented below:
 
Awards
(in millions)
Weighted-Average
Fair Value
Outstanding at December 31, 2016
0.3

$
27.74

Granted
0.3

$
38.11

Vested
—

$
—

Forfeited
—

$
—

Outstanding at December 31, 2017
0.6

$
31.17


At December 31, 2017, there was $11.3 million of unamortized expense relating to unvested PSUs that is expected to be amortized over a weighted average period of 1.9 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.
Other Expense, Net
Other Expense, Net
OTHER EXPENSE, NET
 
Year Ended December 31,
 
2017
2016
2015
Foreign exchange losses, net
$
7.4

$
30.6

$
93.7

Impairments
7.6

10.5

30.6

Debt extinguishment and refinancing related costs
13.4

97.6

2.5

Other miscellaneous expense (income), net
(2.7
)
4.0

(15.6
)
Total
$
25.7

$
142.7

$
111.2


Our Venezuelan subsidiary, which is a U.S. dollar functional entity, contributed to these exchange losses for all periods leading up to the deconsolidation of the entity during the year ended December 31, 2017. The losses for the years ended December 31, 2017, 2016 and 2015 were $1.8 million, $23.5 million and $51.5 million, respectively.
Debt extinguishment and refinancing related costs incurred during the year ended December 31, 2017 include third-party fees incurred in conjunction with the refinancing of the 2023 Dollar Term Loans. Debt extinguishment and refinancing related costs incurred during the year ended December 31, 2016 include redemption premiums on our 2021 Dollar Senior Notes and 2021 Euro Senior Notes as well as the unamortized (or pro-rata unamortized) deferred financing costs and original issue discounts associated with the debt extinguishment. See Note 20 for further information surrounding these debt-related transactions.
Other miscellaneous expense (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 expense (income), net for the year ended December 31, 2015 was the recognition of a $5.6 million gain on certain foreign currency forward contracts compared to losses of $0.2 million and $4.3 million for the years ended December 31, 2017 and 2016, respectively.
Income Taxes
Income Taxes
INCOME TAXES
On December 22, 2017, the U.S. TCJA legislation, as defined herein, was enacted into law, which significantly revises the Internal Revenue Code of 1986, as amended. The U.S. TCJA includes, among other items, (1) permanent reduction of the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%; (2) limitations on the tax deduction for net interest expense to 30% of adjusted earnings; (3) a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (4) a shift of the U.S. taxation of multinational corporations from a tax on worldwide income to a territorial system (along with certain rules designed to prevent erosion of the U.S. income tax base); and (5) modifying or repealing many other business deductions and credits (including modifications to annual foreign tax credit limitations).
We have assessed the impacts of the changes from the U.S. TCJA and recorded a provisional non-cash net tax charge of $107.8 million as of December 31, 2017. This provisional tax charge includes a one-time $81.1 million remeasurement of the net U.S. deferred tax assets to the lower enacted U.S. corporate tax rate of 21% and establishment of a valuation allowance of $26.1 million on certain interest and foreign tax credit carryforwards as a result of other provisions in the U.S. TCJA effective January 1, 2018. We intend to maintain this valuation allowance unless further regulatory guidance provides sufficient positive evidence to support the realizability of the deferred tax assets. Additionally, we recorded $0.6 million of withholding tax on unremitted earnings due to the implementation of the territorial tax system. At present, we do not estimate any material impacts from the repatriation tax. While we have completed our provisional analysis of the income tax effects of the U.S. TCJA, the related tax charge may differ, possibly materially, due to further refinement of our calculations, changes in interpretations and assumptions that we have made, additional guidance that may be issued by regulatory bodies, and actions and related accounting policy decisions we may take as a result of the new legislation. We will complete our analysis over the one-year measurement period from the enactment of the law as provided for by SAB 118, and any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. 
Domestic and Foreign Components of Income Before Income Taxes
 
Year Ended December 31,
 
2017
2016
2015
Domestic
$
41.8

$
27.9

$
(22.5
)
Foreign
147.8

54.8

180.4

Total
$
189.6

$
82.7

$
157.9


Provision (Benefit) for Income Taxes
 
Year Ended December 31, 2017
Year Ended December 31, 2016
Year Ended December 31, 2015
 
Current  
Deferred  
Total  
Current  
Deferred  
Total  
Current  
Deferred  
Total  
U.S. federal
$
4.6

$
102.8

$
107.4

$
0.9

$
(1.3
)
$
(0.4
)
$
—

$
17.8

$
17.8

U.S. state and local
1.7

0.4

2.1

3.7

8.2

11.9

3.1

8.5

11.6

Foreign
43.9

(11.5
)
32.4

49.4

(22.8
)
26.6

65.2

(32.5
)
32.7

Total
$
50.2

$
91.7

$
141.9

$
54.0

$
(15.9
)
$
38.1

$
68.3

$
(6.2
)
$
62.1

Reconciliation to U.S. Statutory Rate
 
Year Ended December 31, 2017
Year Ended December 31, 2016
Year Ended December 31, 2015
Statutory U.S. federal income tax rate (1)
$
66.4

35.0
 %
$
29.0

35.0
 %
$
55.2

35.0
 %
Foreign income taxed at rates other than 35%
(56.2
)
(29.6
)
(45.6
)
(55.1
)
(41.4
)
(26.2
)
Changes in valuation allowances
45.3

23.9

9.6

11.6

34.4

21.8

Foreign exchange gain (loss), net
(17.7
)
(9.3
)
3.1

3.7

(10.5
)
(6.6
)
Unrecognized tax benefits
3.1

1.6

7.1

8.6

0.4

0.3

Foreign taxes
4.1

2.2

4.5

5.4

5.8

3.7

Non-deductible interest
9.8

5.2

6.7

8.1

4.9

3.1

Non-deductible expenses
4.6

2.4

4.7

5.7

5.5

3.5

Tax credits
(4.2
)
(2.2
)
(6.7
)
(8.1
)
(5.5
)
(3.5
)
Excess tax benefits relating to share-based compensation
(13.1
)
(6.9
)
(13.4
)
(16.2
)
—

—

Venezuela deconsolidation and impairment
(2.0
)
(1.1
)
23.8

28.8

10.7

6.8

U.S. state and local taxes, net
1.3

0.7

7.8

9.4

8.1

5.1

U.S. tax reform (2)
107.8

56.9

—

—

—

—

Other - net
(7.3
)
(4.0
)
7.5

9.2

(5.5
)
(3.7
)
Total income tax provision / effective tax rate
$
141.9

74.8
 %
$
38.1

46.1
 %
$
62.1

39.3
 %
(1)
The U.S. statutory rate has been used as management believes it is more meaningful to the Company.
(2)
Provisional net tax effect of the U.S. TCJA.
Deferred Tax Balances
Year Ended December 31,
 
2017
2016
Deferred tax asset
 
 
Tax loss, credit and interest carryforwards
$
265.3

$
263.7

Goodwill and intangibles
—

48.1

Compensation and employee benefits
86.0

92.8

Accruals and other reserves
33.9

40.0

Research and development capitalization
8.9

15.7

Equity investment and other securities
26.4

(0.7
)
Other
10.9

16.4

Total deferred tax assets
431.4

476.0

Less: Valuation allowance
(214.2
)
(135.4
)
Net deferred tax assets
217.2

340.6

Deferred tax liabilities
 
 
Goodwill and intangibles
(15.2
)
—

Property, plant and equipment
(146.9
)
(168.4
)
Unremitted earnings
(7.4
)
(5.8
)
Long-term debt
(2.2
)
(4.2
)
Total deferred tax liabilities
(171.7
)
(178.4
)
Net deferred tax asset
$
45.5

$
162.2

Non-current assets
198.4

322.4

Non-current liability
(152.9
)
(160.2
)
Net deferred tax asset
$
45.5

$
162.2


At December 31, 2017, the Company had $176.4 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $84.9 million have indefinite carryforward periods, and the remaining $91.5 million are subject to expiration between the years 2020 through 2026. Non-U.S. tax credit carryforwards at December 31, 2017 amounted to $1.8 million. Of these, $1.5 million have indefinite carryforward period, and the remaining are subject to expiration between the years 2020 and 2022.
In the U.S., there were approximately $37.2 million of federal net operating loss carryforwards (tax effected) subject to expiration in years beyond 2032, and $2.7 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2018 and 2037. U.S. tax credit carryforwards at December 31, 2017 amounted to $34.8 million subject to expiration between the years 2019 and 2037. U.S. interest carryforwards at December 31, 2017 of $12.4 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, 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 2036. U.S. tax credit carryforwards at December 31, 2016 amounted to $26.0 million subject to expiration between the years 2019 and 2036. U.S. interest carryforwards at December 31, 2015 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.
Valuation allowances relate primarily to the increase in tax loss carryforwards and equity investment 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. Of the $214.2 million valuation allowance at December 31, 2017, $188.1 million pertains to certain non-U.S. jurisdictions. A significant portion of the non-U.S. valuation allowance balance relates to the Company’s operations in Luxembourg and the Netherlands, which amount to $155.7 million and $113.8 million for years ended December 31, 2017 and December 31, 2016, 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 2026. In Luxembourg, the Company’s tax loss carryforwards have an indefinite carryforward period.
The remaining $26.1 million valuation allowance relates to certain U.S. interest and foreign tax credit carryforwards that were impacted by the enactment of the U.S. TCJA and discussed in more detail above.
Total Gross Unrecognized Tax Benefits
 
Year Ended December 31,
 
2017
2016
2015
Balance at January 1
$
12.3

$
4.7

$
5.3

Increases related to positions taken on items from prior years
1.9

—

—

Decreases related to positions taken on items from prior years
—

(0.2
)
(0.6
)
Increases related to positions taken in the current year
3.0

7.8

—

Balance at December 31
$
17.2

$
12.3

$
4.7


At December 31, 2017, 2016 and 2015, the total amount of gross unrecognized tax benefits was $17.2 million, $12.3 million and $4.7 million, of which $9.7 million, $8.5 million and $4.7 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 $0.1 million, $0.3 million and $0.4 million in 2017, 2016 and 2015, 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, 2017, 2016 and 2015 was $1.2 million, $1.1 million and $0.7 million, respectively.
The Company is subject to income tax in approximately 47 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 2007 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, 2017, 2016 and 2015, we had gross unrecognized tax benefits of $18.4 million, $13.4 million and $5.4 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. 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)
2017
2016
2015
Net income to common shareholders
$
36.7

$
38.8

$
91.6

Basic weighted average shares outstanding
240.4

238.1

233.8

Diluted weighted average shares outstanding
246.1

244.4

239.7

Net income per common share:
 
 
 
Basic net income per share
$
0.15

$
0.16

$
0.39

Diluted net income per share
$
0.15

$
0.16

$
0.38


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, 2017, 2016 and 2015 were 1.8 million, 1.3 million and 0.7 million, respectively.
Accounts and Notes Receivable, Net
Accounts and Notes Receivable, Net
ACCOUNTS AND NOTES RECEIVABLE, NET
 
Year Ended December 31,
 
2017
2016
Accounts receivable—trade, net
$
748.2

$
640.4

Notes receivable
29.4

68.7

Other
92.6

92.8

Total
$
870.2

$
801.9


Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $15.9 million and $13.7 million at December 31, 2017 and 2016, respectively. Bad debt expense was $3.5 million, $3.4 million and $4.9 million for the years ended December 31, 2017, 2016 and 2015, respectively.
Inventories
Inventories
INVENTORIES
 
Year Ended December 31,
 
2017
2016
Finished products
$
347.5

$
315.2

Semi-finished products
95.5

87.5

Raw materials and supplies
165.6

127.0

Total
$
608.6

$
529.7


Stores and supplies inventories of $20.8 million and $20.2 million at December 31, 2017 and 2016, 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 $176.6 million, $176.8 million and $169.1 million for the years ended December 31, 2017, 2016 and 2015, respectively.
 
 
 
 
Year Ended December 31,
 
Useful Lives (years)
2017
2016
Land
 
 
 
$
87.6

$
85.2

Buildings and improvements
5
-
25
516.3

454.0

Machinery and equipment
3
-
25
1,244.0

1,087.5

Software
5
-
7
155.3

139.7

Other
3
-
20
41.7

35.6

Construction in progress
 
 
 
148.7

131.0

Total
 
 
 
2,193.6

1,933.0

Accumulated depreciation
 
 
 
(805.0
)
(617.3
)
Property, plant and equipment, net
 
 
 
$
1,388.6

$
1,315.7

Other Assets
Other Assets
OTHER ASSETS
 
Year Ended December 31,
 
2017
2016
Available for sale securities
$
5.2

$
4.4

Deferred income taxes—non-current
198.4

322.4

Other assets
225.0

209.3

Total
$
428.6

$
536.1

Accounts Payable
Accounts Payable
ACCOUNTS PAYABLE
 
Year Ended December 31,
 
2017
2016
Trade payables
$
510.7

$
429.5

Non-income taxes
27.0

27.2

Other
17.2

17.5

Total
$
554.9

$
474.2

Other Accrued Liabilities
Other Accrued Liabilities
OTHER ACCRUED LIABILITIES
 
Year Ended December 31,
 
2017
2016
Compensation and other employee-related costs
$
153.3

$
145.8

Current portion of long-term employee benefit plans
12.0

10.1

Restructuring
71.5

66.1

Discounts, rebates, and warranties
138.8

119.8

Income taxes payable
22.2

23.3

Derivative liabilities
3.3

1.3

Other
88.5

73.6

Total
$
489.6

$
440.0

Borrowings
Borrowings
BORROWINGS
Borrowings are summarized as follows:
 
Year Ended December 31,
 
2017
2016
2024 Dollar Term Loans
$
1,960.0

$
—

2023 Dollar Term Loans
—

1,545.0

2023 Euro Term Loans
472.5

417.6

2024 Dollar Senior Notes
500.0

500.0

2024 Euro Senior Notes
399.7

349.7

2025 Euro Senior Notes
536.9

469.8

Short-term and other borrowings
94.8

39.8

Unamortized original issue discount
(9.1
)
(10.0
)
Unamortized deferred financing costs
(39.2
)
(48.0
)
 
$
3,915.6

$
3,263.9

Less:
 
 
Short-term borrowings
$
12.9

$
8.3

Current portion of long-term borrowings
24.8

19.6

Long-term debt
$
3,877.9

$
3,236.0


Senior Secured Credit Facilities, as amended
On February 3, 2014 (the "Second Amendment Effective Date"), Axalta Coating Systems Dutch B B.V., 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").
On June 1, 2017 (the "Fifth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fifth amendment to the Credit Agreement (the "Fifth Amendment"). The Fifth Amendment converted all of the outstanding 2023 Dollar Term Loans ($1,541.1 million) into a new tranche of term loans with principal of $2,000.0 million (the "2024 Dollar Term Loans", together with the 2023 Euro Term Loans, the "Current Terms Loans", and with the Revolving Credit Facility, as defined herein, the "Senior Secured Credit Facilities"). The 2024 Dollar Term Loans were issued at 99.875% of par, or a $2.5 million discount.
Interest was and is payable quarterly on both the 2023 Term Loans and Current Term Loans.
The 2024 Dollar Term Loans are subject to a floor of zero plus an applicable rate of 2.00% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 1.00% per annum for Base Rate Loans as defined in the Credit Agreement.
Prior to the Fifth Amendment, interest on the 2023 Dollar Term Loans was subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such 2023 Dollar Term Loans was 2.50% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 1.50% per annum for Base Rate Loans as defined in the Credit Agreement. The 2023 Euro Term Loans 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 2020 Euro Term Loans were also subject to a floor of 1.00%, plus an applicable rate. The applicable rate for such 2020 Euro Term Loans was 3.25% per annum for Eurocurrency Rate Loans. The 2020 Euro Term Loans were not to be Base Rate Loans. The applicable rate 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. During the third quarter of 2014, our Total Net Leverage Ratio was less than 4.50:1.00. Consequently, the applicable rates were changed to 2.75% for the 2020 Dollar Term Loans and 3.00% for the 2020 Euro Term Loans through the Fourth Amendment Effective Date.
Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $75.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow.
The Senior Secured Credit Facilities are secured by substantially all assets of Dutch A B.V. and the guarantors. The 2023 Euro Term Loans mature on February 1, 2023 and the 2024 Dollar Term Loans mature on June 1, 2024. Principal is paid quarterly on both the 2023 Euro Term Loans and the 2024 Dollar Term Loans based on 1% per annum of the original principal amount outstanding on the most recent amendment date with the unpaid balance due at maturity.
We are subject to customary negative covenants in addition to the First Lien Leverage Ratio financial covenant for purposes of determining any Excess Cash Flow mandatory payment. Further, the Senior Secured Credit Facilities, among other things, include customary restrictions (subject to certain exceptions) on the Company's ability to incur certain indebtedness, grant certain liens, make certain investments, declare or pay certain dividends, or repurchase shares of the Company's common stock. As of December 31, 2017, the Company is in compliance with all covenants under the Senior Secured Credit Facilities.
Revolving Credit Facility
On August 1, 2016 (the "Third Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the third amendment to the Senior Secured Credit Facilities (the "Third Amendment"). The Third Amendment impacted the revolving credit facility under the Senior Secured Credit Facilities (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, 2017, the financial covenant is not applicable as there were no borrowings.
Under the Third Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of zero 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, 2017 and December 31, 2016, letters of credit issued under the Revolving Credit Facility totaled $35.5 million and $21.3 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $364.5 million and $378.7 million at December 31, 2017 and December 31, 2016, respectively.
Significant Transactions
During the year ended December 31, 2017, in connection with the Fifth Amendment discussed above, we recorded a loss on extinguishment of $13.0 million. In addition, during the year ended December 31, 2017, we voluntarily prepaid $30.0 million in principal of the outstanding 2024 Dollar Term Loans, resulting in a loss of $0.4 million, consisting of the write-off of $0.3 million and $0.1 million of unamortized deferred financing costs and original issue discounts, respectively.
During the year ended December 31, 2016, in connection with the Third Amendment discussed above, we recorded a loss on extinguishment of $2.3 million. In addition, 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 Fourth Amendment, 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 the year ended December 31, 2015, we voluntarily prepaid $100.0 million of the outstanding 2020 Dollar Term Loans which 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.
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.
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 2016 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 2016 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. (“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 2016 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 2016 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, 2017.
2018
$
40.5

2019
26.5

2020
25.7

2021
25.7

2022
52.4

Thereafter
3,778.6

 
$
3,949.4


The table above excludes $14.5 million of debt associated with our sale-leaseback financings 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, 2017 and 2015 we recorded impairment losses of $1.7 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, 2017, 2016 and 2015, we recorded impairment losses on property of $7.6 million, $10.5 million and $30.6 million, respectively. The impairment losses recorded during the year ended December 31, 2017 related to actions to reduce operational costs through activities to rationalize our manufacturing footprint and the write-down of these manufacturing facilities based on market price estimates. The losses recorded during the years ended December 31, 2016 and 2015 were related to losses 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 associated with our Venezuela operations.
Fair value of financial instruments
Available for sale securities - The fair values of available for sale securities at December 31, 2017 and 2016 were $5.2 million and $4.4 million, respectively. The fair value was based upon either Level 1 inputs when the securities are actively traded with quoted market prices or Level 2 when the securities are not frequently traded.
Long-term borrowings - The fair values of the 2024 Dollar Senior Notes, 2024 Euro Senior Notes and 2025 Euro Senior Notes at December 31, 2017 were $524.4 million, $427.7 million and $571.8 million, respectively. The fair values at December 31, 2016 were $500.0 million, $363.8 million and $472.2 million, respectively. The estimated fair values of these notes are based on recent trades 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 2024 Dollar Term Loans and the 2023 Euro Term Loans at December 31, 2017 were $1,967.4 million and $475.5 million, respectively. 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 estimated fair values of the 2024 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 Current Term Loans, these inputs are considered to be Level 2 inputs.
Fair value of contingent consideration
The fair value of contingent consideration associated with acquisitions completed in current and prior years are valued at each balance sheet date, until amounts become payable, with adjustments recorded within selling, general and administrative expenses on the consolidated statement of operations. The fair value of contingent consideration at December 31, 2017 and 2016 was $8.9 million and $10.0 million, respectively. During the years ended December 31, 2017 and 2016 the Company recorded gains of $3.0 million and losses of $0.8 million associated with the changes to fair value, respectively. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy.
Derivative Financial Instruments
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs.
Derivative Instruments Qualifying and Designated as Cash Flow Hedges
During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps matured on September 29, 2017.
During the year ended December 31, 2017, we entered into four 1.5% interest rate caps with aggregate notional amounts totaling $850 million to hedge the variable interest rate exposures on our 2024 Dollar Term Loans. Three of these interest rate caps, comprising $600 million of the notional value, are effective beginning September 30, 2017 and expire December 31, 2019 and included an aggregate deferred premium of $8.6 million. The fourth interest rate cap, comprising the remaining $250 million of the notional value, is in place starting from January 1, 2018 and expires December 31, 2021 and included a deferred premium of $8.1 million. All deferred premiums will be paid quarterly over the term of the respective interest rate caps.
The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in the accompanying consolidated balance sheet:
 
Year Ended December 31,
 
2017
2016
Prepaid and other assets:
 
 
Interest rate swaps
$
—

$
0.1

Other assets:
 
 
Interest rate caps
$
1.2

$
—

Total assets
$
1.2

$
0.1

Other accrued liabilities:
 
 
Interest rate swaps
$
—

$
0.8

Interest rate caps
2.6

—

Total liabilities
$
2.6

$
0.8


For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current period earnings.
The following table sets forth the locations and amounts recognized during the years ended December 31, 2017, 2016, and 2015 respectively, for these cash flow hedges.
Derivatives in Cash Flow Hedging
Relationships in 2017:
Amount of
Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of 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
$
1.8

Interest expense, net
$
(0.4
)
Interest expense, net
$
(2.3
)
Derivatives in Cash Flow Hedging Relationships in 2016:
Amount of
Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of 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
$
2.0

Interest expense, net
$
5.9

Interest expense, net
$
1.2

Derivatives in Cash Flow Hedging Relationships in 2015:
Amount of
Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of 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


Derivative Instruments Not Designated as Cash Flow Hedges
We periodically enter into foreign currency forward and option contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other (income) expense, net in the consolidated statement of operations.
During the year ended December 31, 2013, we purchased a €300.0 million 1.5% interest rate cap on our Euro Term Loans for a premium of $3.1 million. The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument were recorded in current period earnings in interest expense. The hedge matured on September 29, 2017.
During the year ended December 31, 2017, we purchased a 1.25% interest rate cap with a notional amount of €388.0 million to hedge the variable interest rate exposures on our 2023 Euro Term Loans. We paid a premium equal to $0.6 million for the interest rate cap which is effective beginning September 30, 2017 through December 31, 2019. Changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.
The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our consolidated balance sheet:
 
Year Ended December 31,
 
2017
2016
Prepaid and other assets:
 
 
Foreign currency contracts
$
—

$
0.1

Total assets
$
—

$
0.1

Other accrued liabilities:
 
 
Foreign currency contracts
$
0.7

$
0.5

Total liabilities:
0.7

0.5


Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows:
Derivatives Not Designated as
Hedging Instruments under
ASC 815
Location of (Gain) Loss
Recognized in Income on
Derivatives
Year Ended December 31, 2017
Year Ended December 31, 2016
Year Ended December 31, 2015
Foreign currency forward contracts
Other expense, net
$
11.2

$
4.3

$
(5.6
)
Interest rate cap
Interest expense, net
0.6

—

0.1

 
 
$
11.8

$
4.3

$
(5.5
)
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,
 
2017
2016
2015
Performance Coatings
 
 
 
Refinish
$
1,645.2

$
1,679.7

$
1,698.7

Industrial
1,029.9

718.8

683.1

Total Net sales Performance Coatings
2,675.1

2,398.5

2,381.8

Transportation Coatings
 
 
 
Light Vehicle
1,322.8

1,337.7

1,310.6

Commercial Vehicle
355.0

332.6

391.5

Total Net sales Transportation Coatings
1,677.8

1,670.3

1,702.1

Total Net sales
$
4,352.9

$
4,068.8

$
4,083.9


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, 2017
 
 
 
Net sales (1)
$
2,675.1

$
1,677.8

$
4,352.9

Equity in earnings in unconsolidated affiliates
0.3

0.7

1.0

Adjusted EBITDA (2)
564.2

321.0

885.2

Investment in unconsolidated affiliates
2.9

12.6

15.5

 
Performance
Coatings
Transportation
Coatings
Total
For the Year ended December 31, 2016
 
 
 
Net sales (1)
$
2,398.5

$
1,670.3

$
4,068.8

Equity in earnings (losses) in unconsolidated affiliates
(0.2
)
0.4

0.2

Adjusted EBITDA (2)
549.7

352.7

902.4

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)
$
2,381.8

$
1,702.1

$
4,083.9

Equity in earnings in unconsolidated affiliates
0.6

0.6

1.2

Adjusted EBITDA (2)
535.8

328.1

863.9

Investment in unconsolidated affiliates
4.0

8.4

12.4

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income 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 (i) non-cash items included within net income, (ii) items the Company does not believe are indicative of ongoing operating performance or (iii) nonrecurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows:
 
Year Ended December 31,
 
2017
2016
2015
Income before income taxes
$
189.6

$
82.7

$
157.9

Interest expense, net
147.0

178.2

196.5

Depreciation and amortization
347.5

322.1

307.7

EBITDA
684.1

583.0

662.1

Debt extinguishment and refinancing related costs (a)
13.4

97.6

2.5

Foreign exchange remeasurement losses (b)
7.4

30.6

93.7

Long-term employee benefit plan adjustments (c)
1.4

1.5

(0.3
)
Termination benefits and other employee related costs (d)
35.3

61.8

36.6

Consulting and advisory fees (e)
(0.1
)
10.4

23.9

Transition-related costs (f)
7.7

—

(3.4
)
Offering and transactional costs (g)
18.4

6.0

(1.5
)
Stock-based compensation (h)
38.5

41.1

30.2

Other adjustments (i)
3.6

5.0

(5.8
)
Dividends in respect of noncontrolling interest (j)
(3.0
)
(3.0
)
(4.7
)
Deconsolidation impacts and impairments (k)
78.5

68.4

30.6

Adjusted EBITDA
$
885.2

$
902.4

$
863.9

(a)
During the years ended December 31, 2017 and 2016 we refinanced our indebtedness, resulting in losses of $13.0 million and $88.0 million, respectively. In addition, during the years ended December 31, 2017, 2016 and 2015 we prepaid outstanding principal on our term loans, resulting in non-cash losses on extinguishment of $0.4 million, $9.6 million and $2.5 million, respectively. We do not consider these items to be indicative of our ongoing operating performance.
(b)
Eliminates foreign exchange gains and 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 $1.8 million, $23.5 million, $51.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.
(c)
Eliminates the non-cash, non-service components of long-term employee benefit costs.
(d)
Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(e)
Represents fees paid to consultants, and associated true-ups to estimates, for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(f)
Represents integration costs related to the 2017 acquisition of the Industrial Wood business that was a carve-out business from Valspar and changes in estimates associated with the transition 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 acquisition-related expenses, including changes in the fair value of contingent consideration, as well as $10.0 million of costs associated with contemplated merger activities during the three months ended December 31, 2017 and costs associated with the 2016 secondary offerings of our common shares by Carlyle, 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. This acceleration was the result of the Change in Control that occurred in conjunction with Carlyle's ownership interest falling below 50% and triggering a liquidity event.
(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 our 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 100% owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
(k)
During the year ended December 31, 2017, we recorded a loss in conjunction with the deconsolidation of our Venezuelan subsidiary of $70.9 million. During the year ended December 31, 2016 and 2015, we recorded non-cash impairments at our Venezuelan subsidiary of $68.4 million and $30.6 million, respectively, associated with our operational long-lived assets and a real estate investment (See Note 25). Additionally, during the year ended December 31, 2017, we recorded non-cash impairment charges related to certain manufacturing facilities previously announced for closure of $7.6 million. We do not consider these 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,
 
2017
2016
2015
North America
$
1,607.7

$
1,426.7

$
1,368.6

EMEA
1,538.3

1,455.3

1,425.3

Asia Pacific
748.1

723.9

717.4

Latin America
458.8

462.9

572.6

Total (a)
4,352.9

4,068.8

4,083.9

Net long-lived assets by region were as follows:
 
Year Ended December 31,
 
2017
2016
North America
$
457.9

$
419.3

EMEA
507.4

456.9

Asia Pacific
258.9

248.0

Latin America
164.4

191.5

Total (b)
$
1,388.6

$
1,315.7

(a)
Net Sales are attributed to countries based on location of the customer. Sales to external customers in China represented approximately 12%, 13% and 13% of the total for the years ended December 31, 2017, 2016 and 2015, respectively. Sales to external customers in Germany represented approximately 8%, 9% and 9% of the total for the years ended December 31, 2017, 2016 and 2015, respectively. Mexico represented 6% of the total for the years ended December 31, 2017, 2016 and 2015. Canada, which is included in the North America region, represents approximately 4%, 4% and 3% of total net sales for the year ended December 31, 2017, 2016 and 2015, respectively.
(b)
Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $279.0 million and $262.2 million in the years ended December 31, 2017 and 2016, respectively. China long-lived assets amounted to $217.2 million and $204.0 million in the years ended December 31, 2017 and 2016, respectively. Brazil long-lived assets amounted to approximately $78.6 million and $94.9 million in the years ended December 31, 2017 and 2016, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $25.8 million and 20.0 million in the years ended December 31, 2017 and 2016, respectively.
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2016
$
(292.2
)
$
(56.6
)
$
0.4

$
(2.0
)
$
(350.4
)
Current year deferrals to AOCI
83.4

17.1

0.4

(1.6
)
99.3

Reclassifications from AOCI to Net income
—

8.1

—

2.0

10.1

Net Change
83.4

25.2

0.4

0.4

109.4

Balance, December 31, 2017
$
(208.8
)
$
(31.4
)
$
0.8

$
(1.6
)
$
(241.0
)

Included in the reclassification from AOCI to net income was a pension plan adjustment related to the deconsolidation of our Venezuelan subsidiary and the corresponding write-off of the accumulated actuarial loss on our Venezuela pension plan. This resulted in a decrease of $5.9 million in AOCI, inclusive of $2.6 million of tax benefits, and is discussed further in Note 25.
The cumulative income tax benefit related to the adjustments for pension benefits at December 31, 2017 was $13.0 million. The cumulative income tax benefit related to the adjustments for unrealized gain on derivatives at December 31, 2017 was $0.6 million.
 
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
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
Loss
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 were $1.9 million.
Venezuela
Venezuela
VENEZUELA
During the year ended December 31, 2017, we concluded there was an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. This lack of exchangeability restricted our Venezuelan subsidiary's ability to pay dividends or settle intercompany obligations, which severely limited our ability to realize the benefits from earnings of our Venezuelan operations and access the resulting liquidity provided by those earnings.
Based on the fact that we believe this lack of exchangeability will continue, the continued political unrest, the recent drop in demand for our business and the expected losses we were forecasting for the foreseeable future, we concluded that we no longer met the accounting criteria of control in order to continue consolidating our Venezuelan operations and began accounting for our investments in our Venezuelan subsidiary under the cost method of accounting. As a result of this change, we recorded a loss of $70.9 million on our consolidated statement of operations. This loss was comprised of the subsidiary's net assets for $30.0 million, counterparty intercompany receivables with our Venezuela subsidiary for $35.0 million and unrealized actuarial losses associated with pension plans in AOCI of $5.9 million. The value of the cost investment and all previous intercompany balances are now recorded at zero as of December 31, 2017. Further, our consolidated balance sheet and statement of operations will no longer include the results of our Venezuelan operations. We will recognize income only to the extent that we are paid for inventory we sell or receive cash dividends from our Venezuelan legal entity.
For the years ended December 31, 2017, 2016 and 2015, our Venezuelan subsidiary's net sales represented $2.5 million, $50.8 million and $131.2 million of our consolidated net sales, respectively. For the years ended December 31, 2017, 2016 and 2015, our Venezuelan subsidiary represented a loss of $2.8 million, a loss of $36.5 million and income of $63.0 million of our consolidated income from operations, respectively. For the years ended December 31, 2017, 2016 and 2015, our Venezuelan subsidiary represented net losses of $5.8 million, $68.5 million and $32.0 million of our consolidated net income, respectively.
During the year ended December 31, 2016, the Company recorded an impairment charge on operating assets of $57.9 million, 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.
In addition, 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. The method used to determine fair values for both assets included using Level 2 inputs in the form of a sale and purchase agreement for the certain manufacturing assets and observable market quotes from local real estate broker service firms for the Venezuela real estate investment.
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, 2017 and 2016, respectively (in millions, except per share data):
2017
March 31
June 30(2)
September 30
December 31(3)
Full Year
Total revenue
$
1,013.7

$
1,094.6

$
1,096.3

$
1,172.4

$
4,377.0

Cost of goods sold
641.1

690.0

702.5

746.0

2,779.6

Net income (loss)
65.9

(18.9
)
56.3

(55.6
)
47.7

Net income (loss) attributable to controlling interests
64.1

(20.8
)
54.9

(61.5
)
36.7

Basic net income (loss) per share
0.27

(0.09
)
0.23

(0.26
)
0.15

Diluted net income (loss) per share
0.26

(0.09
)
0.22

(0.26
)
0.15

 
 
 
 
 
 
2016(1)
March 31
June 30(2)
September 30
December 31(4)
Full Year
Total revenue
$
963.2

$
1,070.6

$
1,026.3

$
1,032.6

$
4,092.7

Cost of goods sold
606.4

649.0

630.4

641.8

2,527.6

Net income (loss)
32.8

52.3

(5.4
)
(35.1
)
44.6

Net income (loss) attributable to controlling interests
31.9

50.7

(6.6
)
(37.2
)
38.8

Basic net income (loss) per share
0.13

0.21

(0.03
)
(0.16
)
0.16

Diluted net income (loss) per share
0.13

0.21

(0.03
)
(0.16
)
0.16

 
 
 
 
 
 
(1) The results include the impact of revenue corrections which revised previously reported financial data in all interim periods during the year ended December 31, 2016. See further discussion in Note 2.
(2) During the three months ended June 30, 2017, the Company recorded a loss in conjunction with the deconsolidation of its Venezuelan subsidiary of $70.9 million. During the three months ended June 30, 2016, the Company recorded an impairment charge of $10.5 million, based on our evaluation of the carrying value associated with our real estate investment in Venezuela. See further discussion in Note 25.
(3) During the three months ended December 31, 2017, the Company recorded a provisional net tax charge of $107.8 million ($112.5 million of net loss attributable to controlling interests) associated with the U.S. Tax Cuts and Jobs Act legislation, resulting primarily from the write-down of net deferred tax assets to the lower enacted U.S. corporate tax rate of 21%. The provisionally estimated net tax charge reflects Axalta's current estimate of the new legislation’s impact, which may differ with further regulatory guidance, changes in Axalta's current interpretations and assumptions. Also during the three months ended December 31, 2017, we recorded restructuring costs associated with our Axalta Way initiatives of $28.7 million.
(4) 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 25. 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
2017
$
13.7

3.5

(1.3
)
$
15.9

2016
10.7

3.4

(0.4
)
13.7

2015
$
9.9

4.9

(4.1
)
$
10.7

(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 (1)
Deductions (1)
Balance at End of Year
2017
$
135.4

78.8

—

$
214.2

2016
127.8

9.6

(2.0
)
135.4

2015
$
101.9

34.4

(8.5
)
$
127.8

(1)
Additions and 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, including most commonly the excess earnings method for customer relationships, relief from royalty method for technology and trademarks, cost method for inventory and a combination of cost and market methods for property, plant and equipment, as applicable.
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 from the sale of products to our customers when risk of loss and ownership of the product transfers to the customer. Ownership transfers either upon shipment of the product or when the product is delivered.
For a majority of our product sales, risk or loss and ownership 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. In regard to our refinish end-market, risk of loss passes upon the sale to our distribution customers. Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions may be given to our distribution customers and certain collision repair body shops, which we estimate and record as a reduction to net sales upon the sale to our distribution customers. 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, 2017 and 2016, $173.0 million and $170.8 million, respectively, were capitalized within other assets on the consolidated balance sheets. For the years ended December 31, 2017, 2016 and 2015, $65.0 million, $53.5 million and $50.6 million, respectively, were amortized and reflected as reductions of net sales in the consolidated statements 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 (loss) ("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 16 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. We may elect to bypass the qualitative assessment for some or all of our reporting units and indefinite-lived intangible assets and perform a two-step quantitative test.
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, 2017, 2016 and 2015, 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 AOCI.
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 have elected 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 But Not Yet Adopted
In March 2017, the FASB issued Accounting Standard Update ("ASU") 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The impacts to the accompanying consolidated statement of operations for the years ended December 31, 2017 and 2016, as will be presented in our Annual Report on Form 10-K for the year ended December 31, 2018, will result in reclassifications from cost of goods sold and selling, general and administrative expense to other expense, net. These reclassifications will not have a material impact to the individual line items on the consolidated statement of operations for the impacted periods.
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 requiring 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 in our reporting units.
In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business", which sets forth the accounting guidance that assists in the determination of whether a set of transferred assets and activities is a business. This new guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business; whereas, if the threshold is not met, the entity evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue guidance. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. This standard is expected to have a prospective impact on our assessment of future acquisitions to determine whether the acquired entity requires accounting as an acquired asset (or group of similar identifiable assets) or as a business combination.
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. Total assets and total liabilities will increase in the period of adoption.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. Subsequent updates applicable to the revenue recognition standard, including ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing", provide narrow scope improvements and clarifications. This standard was initially intended to be 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 previous 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 were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We have elected to implement the standard using the modified retrospective method whereby, for contracts which we conclude our performance obligation has been met under the terms of this standard as of the date of initial application, January 1, 2018, we will record a one-time catch up of the net earnings impact to retained earnings on our consolidated balance sheet and consolidated statement of changes in shareholders’ equity of approximately $12 million. The impacts to be reflected at this date represent the net income attributable to certain arrangements primarily within our Transportation Coatings segment for which we determine our performance obligation has been satisfied at the point effective control over inventory has transferred to the customer upon delivery under this standard, as compared to consumption under current GAAP. The election to implement this standard using the modified retrospective method will also require our future disclosures to include the amount by which each financial statement line item is affected as compared with these line items reported under current GAAP to ensure comparability with historical financial statements. We have reviewed our sales contracts and practices as compared to the new guidance and have concluded on the population of affected contracts and implementation plan, as well as our assessment of procedural and policy requirements related to the provisions of this standard. Additionally, under the provisions of this standard, certain costs currently reported in selling, general and administrative costs will be reported within cost of goods sold on the consolidated statements of operations, as they represent costs incurred in satisfaction of performance obligations. Such items will not impact pre-tax operating results. We are currently evaluating the expanded disclosures necessary to be in compliance with this standard, including expanded disclosures regarding significant judgments and estimates involved in the determination of the transaction price, variable consideration and timing of satisfaction of performance obligations.
Acquisitions and Divestitures Acquisitions and Divestitures (Tables)
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed 
After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.3 million, which was comprised of the following:
 
June 1, 2017 (As Initially Reported)
Measurement Period Adjustments
June 1, 2017
(As Adjusted)
Accounts and notes receivable—trade
$
23.3

$
—

$
23.3

Inventories
24.9

(0.2
)
24.7

Prepaid expenses and other
0.2

—

0.2

Property, plant and equipment
23.0

0.1

23.1

Identifiable intangibles
254.2

4.9

259.1

Accounts payable
(22.4
)
0.2

(22.2
)
Other accrued liabilities
(5.1
)
0.4

(4.7
)
Net assets acquired before goodwill on acquisition
298.1

5.4

303.5

Goodwill on acquisition
132.6

(5.8
)
126.8

Net assets acquired
$
430.7

$
(0.4
)
$
430.3

Business Acquisition, Pro Forma Information 
The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016:
 
For the years ended
 (in millions, except per share data)
December 31, 2017
December 31, 2016
Net sales
$
4,454.2

$
4,293.1

Net income
$
55.0

$
45.9

Net income attributable to controlling interests
$
44.0

$
40.1

Net income per share (Basic)
$
0.18

$
0.17

Net income per share (Diluted)
$
0.18

$
0.16

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, 2017 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
December 31, 2015
$
869.0

$
62.3

$
931.3

Goodwill from acquisitions
64.2

15.5

79.7

Foreign currency translation
(43.8
)
(3.1
)
(46.9
)
December 31, 2016
$
889.4

$
74.7

$
964.1

Goodwill from acquisitions
207.2

—

207.2

Purchase accounting adjustments
(15.2
)
—

(15.2
)
Foreign currency translation
107.8

7.3

115.1

December 31, 2017
$
1,189.2

$
82.0

$
1,271.2

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

$
(213.6
)
$
284.4

10.5
Trademarks—indefinite-lived
277.2

—

277.2

Indefinite
Trademarks—definite-lived
102.6

(17.7
)
84.9

15.9
Customer relationships
945.1

(176.8
)
768.3

19.0
Other
16.6

(3.2
)
13.4

4.8
Total
$
1,839.5

$
(411.3
)
$
1,428.2

 
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
Other
2.4

(1.7
)
0.7

4.6
Total
$
1,420.3

$
(290.0
)
$
1,130.3

 
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:
2018
$
110.8

2019
$
109.5

2020
$
109.3

2021
$
108.7

2022
$
106.5

Schedule of Indefinite-Lived Intangible Assets 
Activity related to in-process research and development projects, classified within technology assets, for the years ended December 31, 2016 and 2017 is as follows:
In Process Research and Development
Activity
Balance at December 31, 2015
$
1.6

Completed
—

Abandoned
—

Acquired
—

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

Completed
—

Abandoned
(1.7
)
Acquired
2.3

Foreign currency translation
0.2

Balance at December 31, 2017
$
2.3

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, 2017, 2016 and 2015:
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

Expense recorded
36.2

Payments made
(36.1
)
Foreign currency translation
6.8

Venezuela deconsolidation impact
(1.5
)
Balance at December 31, 2017
$
71.5

Commitments and Contingencies (Tables)
Sale Leaseback Transactions [Table Text Block] 
The table below reflects the total remaining cash payments related to both transactions during the rental term as of December 31, 2017:
 
Sale-leaseback obligations
2018
$
5.3

2019
5.4

2020
5.4

2021
5.5

2022
5.8

Thereafter
83.4

Total minimum payments
$
110.8

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] 
At December 31, 2017, future minimum payments under non-cancelable operating leases were as follows:
 
Operating
Leases
2018
$
41.8

2019
26.6

2020
19.4

2021
14.9

2022
11.8

Thereafter
20.2

Total minimum payments
$
134.7

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, 2017 and 2016 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2017 and 2016 for our defined benefit pension plans:
 
Year Ended December 31,
 
2017
2016
Change in benefit obligation:
 
 
Projected benefit obligation at beginning of year
$
547.6

$
541.7

Service cost
9.0

10.7

Interest cost
13.8

15.1

Participant contributions
1.3

1.0

Actuarial losses (gains), net
(13.8
)
57.4

Plan curtailments, settlements and special termination benefits
(12.9
)
(2.0
)
Benefits paid
(23.3
)
(21.8
)
Business combinations and other adjustments
51.2

—

Currency translation adjustment
64.0

(54.5
)
Projected benefit obligation at end of year
636.9

547.6

Change in plan assets:
 
 
Fair value of plan assets at beginning of year
288.7

278.4

Actual return on plan assets
22.2

41.1

Employer contributions
27.4

27.0

Participant contributions
1.3

1.0

Benefits paid
(23.3
)
(21.8
)
Settlements
(13.9
)
(1.2
)
Business combinations and other adjustments
32.4

—

Currency translation adjustment
30.2

(35.8
)
Fair value of plan assets at end of year
365.0

288.7

Funded status, net
$
(271.9
)
$
(258.9
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
Other assets
$
19.2

$
0.3

Other accrued liabilities
(12.0
)
(10.1
)
Accrued pensions
(279.1
)
(249.1
)
Net amount recognized
$
(271.9
)
$
(258.9
)
Schedule of Accumulated and Projected Benefit Obligations 
The following table reflects the ABO for all defined benefit pension plans as of December 31, 2017 and 2016. 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,
 
2017
2016
ABO
$
605.4

$
516.4

Plans with PBO in excess of plan assets:
 
 
PBO
$
401.2

$
542.6

ABO
$
370.0

$
511.6

Fair value plan assets
$
110.1

$
283.4

Plans with ABO in excess of plan assets:
 
 
PBO
$
393.3

$
488.2

ABO
$
364.9

$
461.3

Fair value plan assets
$
104.7

$
232.6

Schedule of Net Periodic Benefit Cost Not yet Recognized 
The pre-tax amounts not yet reflected in net periodic benefit cost and included in AOCI include the following related to defined benefit plans:
 
Year Ended December 31,
 
2017
2016
Accumulated net actuarial losses
$
(46.4
)
$
(76.6
)
Accumulated prior service credit
2.6

0.9

Total
$
(43.8
)
$
(75.7
)

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 AOCI into net periodic benefit cost during 2018 for the defined benefit plans is as follows:
 
2018
Amortization of net actuarial losses
$
(1.2
)
Amortization of prior service credit
0.1

Total
$
(1.1
)
Schedule of Net Benefit Costs 
The following table sets forth the pre-tax components of net periodic benefit costs for our defined benefit plans for the years ended December 31, 2017, 2016 and 2015.
 
Year Ended December 31,
 
2017
2016
2015
Components of net periodic benefit cost and amounts recognized in comprehensive (income) loss:
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
$
9.0

$
10.7

$
12.0

Interest cost
13.8

15.1

16.9

Expected return on plan assets
(15.0
)
(12.6
)
(14.6
)
Amortization of actuarial loss, net
1.4

0.4

0.4

Amortization of prior service credit
—

—

(0.1
)
Curtailment gain
—

(1.1
)
—

Settlement (gain) loss
0.2

(0.5
)
0.5

Special termination benefit loss
1.0

0.2

—

Net periodic benefit cost
10.4

12.2

15.1

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
(20.6
)
27.7

(3.4
)
Amortization of actuarial loss, net
(1.4
)
(0.4
)
(0.4
)
Prior service (credit) cost
(1.2
)
—

2.7

Amortization of prior service credit
—

—

0.1

Curtailment gain
—

1.1

—

Settlement gain (loss)
(0.2
)
0.5

(0.5
)
Other adjustments
(7.9
)
—

—

Total (gain) loss recognized in other comprehensive (income) loss
(31.3
)
28.9

(1.5
)
Total recognized in net periodic benefit cost and comprehensive (income) loss
$
(20.9
)
$
41.1

$
13.6

Schedule of Assumptions Used 
We used the following assumptions in determining the benefit obligations and net periodic benefit cost of our defined benefit plans:
 
2017
2016
2015
Weighted-average assumptions:
 
 
 
Discount rate to determine benefit obligation
2.13
%
2.52
%
3.05
%
Discount rate to determine net cost
2.52
%
3.05
%
3.23
%
Rate of future compensation increases to determine benefit obligation
2.69
%
3.07
%
3.03
%
Rate of future compensation increases to determine net cost
3.07
%
3.03
%
3.57
%
Rate of return on plan assets to determine net cost
4.73
%
4.75
%
5.21
%
Schedule of Expected Benefit Payments 
The following reflects the total benefit payments expected to be paid for defined benefits:
Year ended December 31,
Benefits
2018
$
29.7

2019
$
32.2

2020
$
32.2

2021
$
31.1

2022
$
32.1

2023—2027
$
189.0

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
2017
2016
Target Allocation
Equity securities
25-30%
30-35%
25-30%
Debt securities
20-25%
35-40%
20-25%
Real estate
0-5%
0-5%
0-5%
Other
45-50%
25-30%
45-50%
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, 2017 and 2016, respectively.
 
Fair value measurements at
 
December 31, 2017
 
Total
Level 1
Level 2
Level 3
Asset Category:
 
 
 
 
Cash and cash equivalents
$
3.7

$
3.7

$
—

$
—

U.S. equity securities
33.3

33.0

—

0.3

Non-U.S. equity securities
76.4

73.4

1.2

1.8

Debt securities—government issued
44.6

33.1

7.3

4.2

Debt securities—corporate issued
32.8

17.2

13.1

2.5

Private market securities and other
141.2

2.7

2.8

135.7

Real estate investments
13.5

—

—

13.5

Total
$
345.5

$
163.1

$
24.4

$
158.0

Debt asset backed securities at NAV
10.9

 
 
 
Hedge funds at NAV
8.6

 
 
 
 
$
365.0

 
 
 
 
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—government issued
60.9

48.0

12.9

—

Debt—corporate issued
38.4

31.0

5.3

2.1

Private market securities and other
64.6

0.4

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

 
 
 

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, 2017 and 2016.
 
Level 3 assets
 
Total
Private
market
securities
Debt and equity
Real
estate investments
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

Realized (loss)
—

—

—

—

Change in unrealized gain
9.9

8.3

0.4

1.2

Purchases, sales, issues and settlements
70.6

63.3

6.2

1.1

Transfers in/(out) of Level 3
—

—

—

—

Ending balance at December 31, 2017
$
158.0

$
135.7

$
8.8

$
13.5

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:
 
2017 Grants
2016 Grants
2015 Grants
Expected Term
6.0 years
6.0 years

6.0 years

Volatility
21.75
%
21.63
%
22.19
%
Dividend Yield
—

—

—

Discount Rate
2.03
%
1.45
%
1.79
%
Schedule of Stock Options Roll Forward 
A summary of stock option award activity as of and for the year ended December 31, 2017 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, 2016
9.6

$
14.40

 
 
Granted
0.9

$
29.56

 
 
Exercised
(2.2
)
$
11.42

 
 
Forfeited
(0.2
)
$
28.29

 
 
Outstanding at December 31, 2017
8.1

$
16.54

 
 
Vested and expected to vest at December 31, 2017
8.1

$
16.54

$
128.3

6.52
Exercisable at December 31, 2017
6.3

$
13.25

$
119.9

5.96
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, 2017 is presented below:
 
Awards
(in millions)
Weighted-Average
Fair Value
Outstanding at December 31, 2016
2.3

$
29.18

Granted
0.8

$
30.10

Vested
(1.0
)
$
30.02

Forfeited
(0.2
)
$
27.21

Outstanding at December 31, 2017
1.9

$
29.32

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, 2017 is presented below:
 
Awards
(in millions)
Weighted-Average
Fair Value
Outstanding at December 31, 2016
0.3

$
27.74

Granted
0.3

$
38.11

Vested
—

$
—

Forfeited
—

$
—

Outstanding at December 31, 2017
0.6

$
31.17

Other Expense, Net (Tables)
Schedule of Other Nonoperating Income (Expense)
 
Year Ended December 31,
 
2017
2016
2015
Foreign exchange losses, net
$
7.4

$
30.6

$
93.7

Impairments
7.6

10.5

30.6

Debt extinguishment and refinancing related costs
13.4

97.6

2.5

Other miscellaneous expense (income), net
(2.7
)
4.0

(15.6
)
Total
$
25.7

$
142.7

$
111.2

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,
 
2017
2016
2015
Domestic
$
41.8

$
27.9

$
(22.5
)
Foreign
147.8

54.8

180.4

Total
$
189.6

$
82.7

$
157.9

Schedule of Components of Income Tax Expense (Benefit) 
Provision (Benefit) for Income Taxes
 
Year Ended December 31, 2017
Year Ended December 31, 2016
Year Ended December 31, 2015
 
Current  
Deferred  
Total  
Current  
Deferred  
Total  
Current  
Deferred  
Total  
U.S. federal
$
4.6

$
102.8

$
107.4

$
0.9

$
(1.3
)
$
(0.4
)
$
—

$
17.8

$
17.8

U.S. state and local
1.7

0.4

2.1

3.7

8.2

11.9

3.1

8.5

11.6

Foreign
43.9

(11.5
)
32.4

49.4

(22.8
)
26.6

65.2

(32.5
)
32.7

Total
$
50.2

$
91.7

$
141.9

$
54.0

$
(15.9
)
$
38.1

$
68.3

$
(6.2
)
$
62.1

Schedule of Effective Income Tax Rate Reconciliation 
Reconciliation to U.S. Statutory Rate
 
Year Ended December 31, 2017
Year Ended December 31, 2016
Year Ended December 31, 2015
Statutory U.S. federal income tax rate (1)
$
66.4

35.0
 %
$
29.0

35.0
 %
$
55.2

35.0
 %
Foreign income taxed at rates other than 35%
(56.2
)
(29.6
)
(45.6
)
(55.1
)
(41.4
)
(26.2
)
Changes in valuation allowances
45.3

23.9

9.6

11.6

34.4

21.8

Foreign exchange gain (loss), net
(17.7
)
(9.3
)
3.1

3.7

(10.5
)
(6.6
)
Unrecognized tax benefits
3.1

1.6

7.1

8.6

0.4

0.3

Foreign taxes
4.1

2.2

4.5

5.4

5.8

3.7

Non-deductible interest
9.8

5.2

6.7

8.1

4.9

3.1

Non-deductible expenses
4.6

2.4

4.7

5.7

5.5

3.5

Tax credits
(4.2
)
(2.2
)
(6.7
)
(8.1
)
(5.5
)
(3.5
)
Excess tax benefits relating to share-based compensation
(13.1
)
(6.9
)
(13.4
)
(16.2
)
—

—

Venezuela deconsolidation and impairment
(2.0
)
(1.1
)
23.8

28.8

10.7

6.8

U.S. state and local taxes, net
1.3

0.7

7.8

9.4

8.1

5.1

U.S. tax reform (2)
107.8

56.9

—

—

—

—

Other - net
(7.3
)
(4.0
)
7.5

9.2

(5.5
)
(3.7
)
Total income tax provision / effective tax rate
$
141.9

74.8
 %
$
38.1

46.1
 %
$
62.1

39.3
 %
(1)
The U.S. statutory rate has been used as management believes it is more meaningful to the Company.
(2)
Provisional net tax effect of the U.S. TCJA.
Schedule of Deferred Tax Assets and Liabilities 
Deferred Tax Balances
Year Ended December 31,
 
2017
2016
Deferred tax asset
 
 
Tax loss, credit and interest carryforwards
$
265.3

$
263.7

Goodwill and intangibles
—

48.1

Compensation and employee benefits
86.0

92.8

Accruals and other reserves
33.9

40.0

Research and development capitalization
8.9

15.7

Equity investment and other securities
26.4

(0.7
)
Other
10.9

16.4

Total deferred tax assets
431.4

476.0

Less: Valuation allowance
(214.2
)
(135.4
)
Net deferred tax assets
217.2

340.6

Deferred tax liabilities
 
 
Goodwill and intangibles
(15.2
)
—

Property, plant and equipment
(146.9
)
(168.4
)
Unremitted earnings
(7.4
)
(5.8
)
Long-term debt
(2.2
)
(4.2
)
Total deferred tax liabilities
(171.7
)
(178.4
)
Net deferred tax asset
$
45.5

$
162.2

Non-current assets
198.4

322.4

Non-current liability
(152.9
)
(160.2
)
Net deferred tax asset
$
45.5

$
162.2

Schedule of Unrecognized Tax Benefits Roll Forward 
Total Gross Unrecognized Tax Benefits
 
Year Ended December 31,
 
2017
2016
2015
Balance at January 1
$
12.3

$
4.7

$
5.3

Increases related to positions taken on items from prior years
1.9

—

—

Decreases related to positions taken on items from prior years
—

(0.2
)
(0.6
)
Increases related to positions taken in the current year
3.0

7.8

—

Balance at December 31
$
17.2

$
12.3

$
4.7

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)
2017
2016
2015
Net income to common shareholders
$
36.7

$
38.8

$
91.6

Basic weighted average shares outstanding
240.4

238.1

233.8

Diluted weighted average shares outstanding
246.1

244.4

239.7

Net income per common share:
 
 
 
Basic net income per share
$
0.15

$
0.16

$
0.39

Diluted net income per share
$
0.15

$
0.16

$
0.38


Accounts and Notes Receivable, Net (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable
 
Year Ended December 31,
 
2017
2016
Accounts receivable—trade, net
$
748.2

$
640.4

Notes receivable
29.4

68.7

Other
92.6

92.8

Total
$
870.2

$
801.9

Inventories (Tables)
Schedule of Inventory, Current
 
Year Ended December 31,
 
2017
2016
Finished products
$
347.5

$
315.2

Semi-finished products
95.5

87.5

Raw materials and supplies
165.6

127.0

Total
$
608.6

$
529.7

Net Property, Plant and Equipment (Tables)
Property, Plant and Equipment
 
 
 
 
Year Ended December 31,
 
Useful Lives (years)
2017
2016
Land
 
 
 
$
87.6

$
85.2

Buildings and improvements
5
-
25
516.3

454.0

Machinery and equipment
3
-
25
1,244.0

1,087.5

Software
5
-
7
155.3

139.7

Other
3
-
20
41.7

35.6

Construction in progress
 
 
 
148.7

131.0

Total
 
 
 
2,193.6

1,933.0

Accumulated depreciation
 
 
 
(805.0
)
(617.3
)
Property, plant and equipment, net
 
 
 
$
1,388.6

$
1,315.7

Other Assets (Tables)
Schedule of Other Assets
 
Year Ended December 31,
 
2017
2016
Available for sale securities
$
5.2

$
4.4

Deferred income taxes—non-current
198.4

322.4

Other assets
225.0

209.3

Total
$
428.6

$
536.1

Accounts Payable (Tables)
Schedule of Accounts Payable
 
Year Ended December 31,
 
2017
2016
Trade payables
$
510.7

$
429.5

Non-income taxes
27.0

27.2

Other
17.2

17.5

Total
$
554.9

$
474.2

 
Other Accrued Liabilities (Tables)
Schedule of Accrued Liabilities
 
Year Ended December 31,
 
2017
2016
Compensation and other employee-related costs
$
153.3

$
145.8

Current portion of long-term employee benefit plans
12.0

10.1

Restructuring
71.5

66.1

Discounts, rebates, and warranties
138.8

119.8

Income taxes payable
22.2

23.3

Derivative liabilities
3.3

1.3

Other
88.5

73.6

Total
$
489.6

$
440.0

Borrowings (Tables)
Schedule of Debt 
Borrowings are summarized as follows:
 
Year Ended December 31,
 
2017
2016
2024 Dollar Term Loans
$
1,960.0

$
—

2023 Dollar Term Loans
—

1,545.0

2023 Euro Term Loans
472.5

417.6

2024 Dollar Senior Notes
500.0

500.0

2024 Euro Senior Notes
399.7

349.7

2025 Euro Senior Notes
536.9

469.8

Short-term and other borrowings
94.8

39.8

Unamortized original issue discount
(9.1
)
(10.0
)
Unamortized deferred financing costs
(39.2
)
(48.0
)
 
$
3,915.6

$
3,263.9

Less:
 
 
Short-term borrowings
$
12.9

$
8.3

Current portion of long-term borrowings
24.8

19.6

Long-term debt
$
3,877.9

$
3,236.0

Schedule of Maturities of Long-term Debt 
Below is a schedule of required future repayments of all borrowings outstanding at December 31, 2017.
2018
$
40.5

2019
26.5

2020
25.7

2021
25.7

2022
52.4

Thereafter
3,778.6

 
$
3,949.4

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, 2017, 2016, and 2015 respectively, for these cash flow hedges.
Derivatives in Cash Flow Hedging
Relationships in 2017:
Amount of
Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of 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
$
1.8

Interest expense, net
$
(0.4
)
Interest expense, net
$
(2.3
)
Derivatives in Cash Flow Hedging Relationships in 2016:
Amount of
Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of 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
$
2.0

Interest expense, net
$
5.9

Interest expense, net
$
1.2

Derivatives in Cash Flow Hedging Relationships in 2015:
Amount of
Loss
Recognized
in OCI on
Derivatives
(Effective
Portion)
Location of 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


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, 2017
Year Ended December 31, 2016
Year Ended December 31, 2015
Foreign currency forward contracts
Other expense, net
$
11.2

$
4.3

$
(5.6
)
Interest rate cap
Interest expense, net
0.6

—

0.1

 
 
$
11.8

$
4.3

$
(5.5
)
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,
 
2017
2016
Prepaid and other assets:
 
 
Interest rate swaps
$
—

$
0.1

Other assets:
 
 
Interest rate caps
$
1.2

$
—

Total assets
$
1.2

$
0.1

Other accrued liabilities:
 
 
Interest rate swaps
$
—

$
0.8

Interest rate caps
2.6

—

Total liabilities
$
2.6

$
0.8

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,
 
2017
2016
Prepaid and other assets:
 
 
Foreign currency contracts
$
—

$
0.1

Total assets
$
—

$
0.1

Other accrued liabilities:
 
 
Foreign currency contracts
$
0.7

$
0.5

Total liabilities:
0.7

0.5

Segments (Tables)
Reconciliation of Revenue from Segments to Consolidated 
Our business serves four end-markets globally as follows: 
 
Year Ended December 31,
 
2017
2016
2015
Performance Coatings
 
 
 
Refinish
$
1,645.2

$
1,679.7

$
1,698.7

Industrial
1,029.9

718.8

683.1

Total Net sales Performance Coatings
2,675.1

2,398.5

2,381.8

Transportation Coatings
 
 
 
Light Vehicle
1,322.8

1,337.7

1,310.6

Commercial Vehicle
355.0

332.6

391.5

Total Net sales Transportation Coatings
1,677.8

1,670.3

1,702.1

Total Net sales
$
4,352.9

$
4,068.8

$
4,083.9

Schedule of Segment Reporting Information, by Segment 
 
Performance
Coatings
Transportation
Coatings
Total
For the Year ended December 31, 2017
 
 
 
Net sales (1)
$
2,675.1

$
1,677.8

$
4,352.9

Equity in earnings in unconsolidated affiliates
0.3

0.7

1.0

Adjusted EBITDA (2)
564.2

321.0

885.2

Investment in unconsolidated affiliates
2.9

12.6

15.5

 
Performance
Coatings
Transportation
Coatings
Total
For the Year ended December 31, 2016
 
 
 
Net sales (1)
$
2,398.5

$
1,670.3

$
4,068.8

Equity in earnings (losses) in unconsolidated affiliates
(0.2
)
0.4

0.2

Adjusted EBITDA (2)
549.7

352.7

902.4

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)
$
2,381.8

$
1,702.1

$
4,083.9

Equity in earnings in unconsolidated affiliates
0.6

0.6

1.2

Adjusted EBITDA (2)
535.8

328.1

863.9

Investment in unconsolidated affiliates
4.0

8.4

12.4

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income 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 (i) non-cash items included within net income, (ii) items the Company does not believe are indicative of ongoing operating performance or (iii) nonrecurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows:
Reconciliation of Operating Profit (Loss) from Segments to Consolidated 
 
Year Ended December 31,
 
2017
2016
2015
Income before income taxes
$
189.6

$
82.7

$
157.9

Interest expense, net
147.0

178.2

196.5

Depreciation and amortization
347.5

322.1

307.7

EBITDA
684.1

583.0

662.1

Debt extinguishment and refinancing related costs (a)
13.4

97.6

2.5

Foreign exchange remeasurement losses (b)
7.4

30.6

93.7

Long-term employee benefit plan adjustments (c)
1.4

1.5

(0.3
)
Termination benefits and other employee related costs (d)
35.3

61.8

36.6

Consulting and advisory fees (e)
(0.1
)
10.4

23.9

Transition-related costs (f)
7.7

—

(3.4
)
Offering and transactional costs (g)
18.4

6.0

(1.5
)
Stock-based compensation (h)
38.5

41.1

30.2

Other adjustments (i)
3.6

5.0

(5.8
)
Dividends in respect of noncontrolling interest (j)
(3.0
)
(3.0
)
(4.7
)
Deconsolidation impacts and impairments (k)
78.5

68.4

30.6

Adjusted EBITDA
$
885.2

$
902.4

$
863.9

(a)
During the years ended December 31, 2017 and 2016 we refinanced our indebtedness, resulting in losses of $13.0 million and $88.0 million, respectively. In addition, during the years ended December 31, 2017, 2016 and 2015 we prepaid outstanding principal on our term loans, resulting in non-cash losses on extinguishment of $0.4 million, $9.6 million and $2.5 million, respectively. We do not consider these items to be indicative of our ongoing operating performance.
(b)
Eliminates foreign exchange gains and 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 $1.8 million, $23.5 million, $51.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.
(c)
Eliminates the non-cash, non-service components of long-term employee benefit costs.
(d)
Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(e)
Represents fees paid to consultants, and associated true-ups to estimates, for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(f)
Represents integration costs related to the 2017 acquisition of the Industrial Wood business that was a carve-out business from Valspar and changes in estimates associated with the transition 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 acquisition-related expenses, including changes in the fair value of contingent consideration, as well as $10.0 million of costs associated with contemplated merger activities during the three months ended December 31, 2017 and costs associated with the 2016 secondary offerings of our common shares by Carlyle, 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. This acceleration was the result of the Change in Control that occurred in conjunction with Carlyle's ownership interest falling below 50% and triggering a liquidity event.
(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 our 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 100% owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
(k)
During the year ended December 31, 2017, we recorded a loss in conjunction with the deconsolidation of our Venezuelan subsidiary of $70.9 million. During the year ended December 31, 2016 and 2015, we recorded non-cash impairments at our Venezuelan subsidiary of $68.4 million and $30.6 million, respectively, associated with our operational long-lived assets and a real estate investment (See Note 25). Additionally, during the year ended December 31, 2017, we recorded non-cash impairment charges related to certain manufacturing facilities previously announced for closure of $7.6 million. We do not consider these to be indicative of our ongoing operating performance.
Geogr
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas 
Net sales by region were as follows:
 
Year Ended December 31,
 
2017
2016
2015
North America
$
1,607.7

$
1,426.7

$
1,368.6

EMEA
1,538.3

1,455.3

1,425.3

Asia Pacific
748.1

723.9

717.4

Latin America
458.8

462.9

572.6

Total (a)
4,352.9

4,068.8

4,083.9

Net long-lived assets by region were as follows:
 
Year Ended December 31,
 
2017
2016
North America
$
457.9

$
419.3

EMEA
507.4

456.9

Asia Pacific
258.9

248.0

Latin America
164.4

191.5

Total (b)
$
1,388.6

$
1,315.7

(a)
Net Sales are attributed to countries based on location of the customer. Sales to external customers in China represented approximately 12%, 13% and 13% of the total for the years ended December 31, 2017, 2016 and 2015, respectively. Sales to external customers in Germany represented approximately 8%, 9% and 9% of the total for the years ended December 31, 2017, 2016 and 2015, respectively. Mexico represented 6% of the total for the years ended December 31, 2017, 2016 and 2015. Canada, which is included in the North America region, represents approximately 4%, 4% and 3% of total net sales for the year ended December 31, 2017, 2016 and 2015, respectively.
(b)
Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $279.0 million and $262.2 million in the years ended December 31, 2017 and 2016, respectively. China long-lived assets amounted to $217.2 million and $204.0 million in the years ended December 31, 2017 and 2016, respectively. Brazil long-lived assets amounted to approximately $78.6 million and $94.9 million in the years ended December 31, 2017 and 2016, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $25.8 million and 20.0 million in the years ended December 31, 2017 and 2016, respectively.
Accumulated Other Comprehensive Income (Loss) (Tables)
Schedule of Accumulated Other Comprehensive Income
 
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2016
$
(292.2
)
$
(56.6
)
$
0.4

$
(2.0
)
$
(350.4
)
Current year deferrals to AOCI
83.4

17.1

0.4

(1.6
)
99.3

Reclassifications from AOCI to Net income
—

8.1

—

2.0

10.1

Net Change
83.4

25.2

0.4

0.4

109.4

Balance, December 31, 2017
$
(208.8
)
$
(31.4
)
$
0.8

$
(1.6
)
$
(241.0
)
 
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Gain on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
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
Loss
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
)
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, 2017 and 2016, respectively (in millions, except per share data):
2017
March 31
June 30(2)
September 30
December 31(3)
Full Year
Total revenue
$
1,013.7

$
1,094.6

$
1,096.3

$
1,172.4

$
4,377.0

Cost of goods sold
641.1

690.0

702.5

746.0

2,779.6

Net income (loss)
65.9

(18.9
)
56.3

(55.6
)
47.7

Net income (loss) attributable to controlling interests
64.1

(20.8
)
54.9

(61.5
)
36.7

Basic net income (loss) per share
0.27

(0.09
)
0.23

(0.26
)
0.15

Diluted net income (loss) per share
0.26

(0.09
)
0.22

(0.26
)
0.15

 
 
 
 
 
 
2016(1)
March 31
June 30(2)
September 30
December 31(4)
Full Year
Total revenue
$
963.2

$
1,070.6

$
1,026.3

$
1,032.6

$
4,092.7

Cost of goods sold
606.4

649.0

630.4

641.8

2,527.6

Net income (loss)
32.8

52.3

(5.4
)
(35.1
)
44.6

Net income (loss) attributable to controlling interests
31.9

50.7

(6.6
)
(37.2
)
38.8

Basic net income (loss) per share
0.13

0.21

(0.03
)
(0.16
)
0.16

Diluted net income (loss) per share
0.13

0.21

(0.03
)
(0.16
)
0.16

 
 
 
 
 
 
(1) The results include the impact of revenue corrections which revised previously reported financial data in all interim periods during the year ended December 31, 2016. See further discussion in Note 2.
(2) During the three months ended June 30, 2017, the Company recorded a loss in conjunction with the deconsolidation of its Venezuelan subsidiary of $70.9 million. During the three months ended June 30, 2016, the Company recorded an impairment charge of $10.5 million, based on our evaluation of the carrying value associated with our real estate investment in Venezuela. See further discussion in Note 25.
(3) During the three months ended December 31, 2017, the Company recorded a provisional net tax charge of $107.8 million ($112.5 million of net loss attributable to controlling interests) associated with the U.S. Tax Cuts and Jobs Act legislation, resulting primarily from the write-down of net deferred tax assets to the lower enacted U.S. corporate tax rate of 21%. The provisionally estimated net tax charge reflects Axalta's current estimate of the new legislation’s impact, which may differ with further regulatory guidance, changes in Axalta's current interpretations and assumptions. Also during the three months ended December 31, 2017, we recorded restructuring costs associated with our Axalta Way initiatives of $28.7 million.
(4) 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 25. 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, 2017
Axalta Coating Systems Luxembourg Top S.a.r.l [Member] [Member]
Dec. 31, 2017
Axalta Coating Systems Dutch Holdings A B.V. [Member]
Dec. 31, 2017
Axalta Coating Systems Dutch Holdings B B.V. [Member]
Dec. 31, 2017
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 
 
 
 
 
Basis of Presentation of the Consolidated and Combined Financial Statements Basis of Presentation of the Consolidated and Combined Financial Statements (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Subsidiaries [Member]
Dec. 31, 2016
Revenue Recognition Correction [Member]
Restatement Adjustment [Member]
Dec. 31, 2015
Revenue Recognition Correction [Member]
Restatement Adjustment [Member]
Dec. 31, 2014
Revenue Recognition Correction [Member]
Restatement Adjustment [Member]
Subsidiary, Sale of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership Interest in Subsidiary
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
Net sales
 
 
 
 
 
 
 
 
$ 4,352.9 
$ 4,068.8 
$ 4,083.9 
 
$ (4.7)
$ (3.3)
 
Net income attributable to controlling interests
(61.5)
54.9 
(20.8)
64.1 
(37.2)
(6.6)
50.7 
31.9 
36.7 
38.8 
91.6 
 
(3.0)
(2.1)
 
Earnings Per Share, Diluted
$ 0.26 
$ (0.22)
$ 0.09 
$ (0.26)
$ 0.16 
$ 0.03 
$ (0.21)
$ (0.13)
$ (0.15)
$ (0.16)
$ (0.38)
 
$ 0.01 
$ 0.01 
$ 0.01 
Other accrued liabilities
489.6 
 
 
 
440.0 
 
 
 
489.6 
440.0 
 
 
22.4 
 
 
Goodwill
1,271.2 
 
 
 
964.1 
 
 
 
1,271.2 
964.1 
931.3 
 
3.1 
 
 
Other assets
428.6 
 
 
 
536.1 
 
 
 
428.6 
536.1 
 
 
8.3 
 
 
Accumulated deficit
$ (21.4)
 
 
 
$ (58.1)
 
 
 
$ (21.4)
$ (58.1)
 
 
$ 11.0 
 
 
Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accounting Policies [Line Items]
 
 
 
Business incentive programs
$ 1,428.2 
$ 1,130.3 
 
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
173.0 
170.8 
 
Sales Allowances, Goods
$ 65.0 
$ 53.5 
$ 50.6 
Recent Accounting Guidance (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2017
Retained Earnings [Member]
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Effect of adoption, charge to shareholders' equity
$ 43.9 
$ 12.1 
Acquisitions and Divestitures - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended
Jun. 1, 2017
Dec. 31, 2017
Dec. 31, 2016
Jun. 1, 2017
Technology-Based Intangible Assets [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Weighted average amortization periods (years)
 
10 years 5 months 25 days 
10 years 2 months 
 
Trademarks [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Weighted average amortization periods (years)
 
15 years 10 months 30 days 
14 years 8 months 31 days 
 
Customer Relationships [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Weighted average amortization periods (years)
 
19 years 
18 years 8 months 
 
Industrial Wood Acquisition [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Payments to acquire businesses, gross
$ 420.0 
 
 
 
Consideration transferred, working capital adjustments
10.3 
 
 
 
Consideration transferred
430.3 
 
 
 
Goodwill on acquisition
 
126.8 
 
126.8 
Acquisition related costs
 
5.3 
 
 
Identifiable intangibles
 
 
 
259.1 
Weighted average amortization periods (years)
19 years 
 
 
 
Net sales from acquired entities since acquisition date
 
146.1 
 
 
Pro forma earnings (loss)
 
(2.4)
 
 
Pro forma net income (loss)
 
55.0 
45.9 
 
Industrial Wood Acquisition [Member] |
Acquisition-related Costs [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Pro forma net income (loss)
 
5.3 
 
 
Industrial Wood Acquisition [Member] |
Acquisition-related Costs, Net of Tax [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Pro forma net income (loss)
 
3.3 
 
 
Industrial Wood Acquisition [Member] |
Fair Value Adjustment to Inventory [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Pro forma net income (loss)
 
2.8 
 
 
Industrial Wood Acquisition [Member] |
Fair Value Adjustment to Inventory, net of tax [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Pro forma net income (loss)
 
1.8 
 
 
Industrial Wood Acquisition [Member] |
Technology-Based Intangible Assets [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Definite-lived intangible assets acquired
34.6 
 
 
 
Industrial Wood Acquisition [Member] |
Trademarks [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Definite-lived intangible assets acquired
8.0 
 
 
 
Industrial Wood Acquisition [Member] |
Customer Relationships [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Definite-lived intangible assets acquired
203.0 
 
 
 
Industrial Wood Acquisition [Member] |
Customer Contracts [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Definite-lived intangible assets acquired
13.5 
 
 
 
2017 Acquisitions [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Consideration transferred
 
573.4 
 
 
Definite-lived intangible assets acquired
 
322.3 
 
 
Percentage of voting interest acquired
 
100.00% 
 
 
Number of businesses acquired
 
8 
 
 
Range of outcomes, value, high
 
5.7 
 
 
2017 Acquisitions [Member] |
North America [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Number of businesses acquired
 
2 
 
 
2017 Acquisitions [Member] |
Europe [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Number of businesses acquired
 
5 
 
 
2017 Acquisitions [Member] |
Technology-Based Intangible Assets [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Definite-lived intangible assets acquired
 
47.4 
 
 
2017 Acquisitions [Member] |
Trademarks [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Definite-lived intangible assets acquired
 
20.2 
 
 
2017 Acquisitions [Member] |
Customer Relationships [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Definite-lived intangible assets acquired
 
239.1 
 
 
2017 Acquisitions [Member] |
Customer Contracts [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Definite-lived intangible assets acquired
 
$ 15.6 
 
 
2017 Other Acquisitions [Member] [Member]
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Number of businesses acquired
 
7 
 
 
Acquisitions and Divestitures - Assets Acquired and Liabilities Assumed (Details) (Industrial Wood Acquisition [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Jun. 1, 2017
Business Acquisition [Line Items]
 
 
Accounts and notes receivable—trade
 
$ 23.3 
Inventories
 
24.7 
Prepaid expenses and other
 
0.2 
Property, plant and equipment
 
23.1 
Identifiable intangibles
 
259.1 
Accounts payable
 
22.2 
Other accrued liabilities
 
4.7 
Net assets acquired before goodwill on acquisition
 
303.5 
Goodwill on acquisition
126.8 
126.8 
Net assets acquired
 
430.3 
Scenario, Previously Reported [Member]
 
 
Business Acquisition [Line Items]
 
 
Accounts and notes receivable—trade
 
23.3 
Inventories
 
24.9 
Prepaid expenses and other
 
0.2 
Property, plant and equipment
 
23.0 
Identifiable intangibles
 
254.2 
Accounts payable
 
22.4 
Other accrued liabilities
 
5.1 
Net assets acquired before goodwill on acquisition
 
298.1 
Goodwill on acquisition
 
132.6 
Net assets acquired
 
430.7 
Scenario, Adjustment [Member]
 
 
Business Acquisition [Line Items]
 
 
Accounts and notes receivable—trade
 
0 
Inventories
 
(0.2)
Prepaid expenses and other
 
0 
Property, plant and equipment
 
0.1 
Identifiable intangibles
 
4.9 
Accounts payable
 
(0.2)
Other accrued liabilities
 
(0.4)
Net assets acquired before goodwill on acquisition
 
5.4 
Goodwill on acquisition
 
(5.8)
Net assets acquired
 
$ (0.4)
Acquisitions and Divestitures - Pro Forma Information (Details) (Industrial Wood Acquisition [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Industrial Wood Acquisition [Member]
 
 
Business Acquisition [Line Items]
 
 
Net sales
$ 4,454.2 
$ 4,293.1 
Net income
55.0 
45.9 
Net income attributable to controlling interests
$ 44.0 
$ 40.1 
Net income per share (Basic) (in dollars per share)
$ 0.18 
$ 0.17 
Net income per share (Diluted) (in dollars per share)
$ 0.18 
$ 0.16 
Goodwill and Identifiable Intangible Assets - Additional Information (Details) (Trademarks [Member])
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Line Items]
 
 
Weighted average amortization periods (years)
15 years 10 months 30 days 
14 years 8 months 31 days 
Indefinite-lived Intangible Assets, Major Class Name [Domain]
 
 
Goodwill [Line Items]
 
 
Weighted average amortization periods (years)
20 years 
 
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
$ 964.1 
$ 931.3 
Goodwill from acquisitions
207.2 
79.7 
Goodwill, Purchase Accounting Adjustments
(15.2)
 
Foreign currency translation
115.1 
(46.9)
Goodwill, ending balance
1,271.2 
964.1 
Performance Coatings [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
889.4 
869.0 
Goodwill from acquisitions
207.2 
64.2 
Goodwill, Purchase Accounting Adjustments
(15.2)
 
Foreign currency translation
107.8 
(43.8)
Goodwill, ending balance
1,189.2 
889.4 
Transportation Coatings [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
74.7 
62.3 
Goodwill from acquisitions
0 
15.5 
Goodwill, Purchase Accounting Adjustments
0 
 
Foreign currency translation
7.3 
(3.1)
Goodwill, ending balance
$ 82.0 
$ 74.7 
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, 2017
Dec. 31, 2016
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
$ 1,839.5 
$ 1,420.3 
Accumulated Amortization
(411.3)
(290.0)
Net Book Value, definite-lived
1,428.2 
1,130.3 
Trademarks [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Net Book Value, indefinite-lived
277.2 
273.2 
Technology-Based Intangible Assets [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
498.0 
417.1 
Accumulated Amortization
(213.6)
(153.6)
Net Book Value, definite-lived
284.4 
263.5 
Weighted average amortization periods (years)
10 years 5 months 25 days 
10 years 2 months 
Trademarks [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
102.6 
55.0 
Accumulated Amortization
(17.7)
(11.4)
Net Book Value, definite-lived
84.9 
43.6 
Weighted average amortization periods (years)
15 years 10 months 30 days 
14 years 8 months 31 days 
Customer Relationships [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
945.1 
672.6 
Accumulated Amortization
(176.8)
(123.3)
Net Book Value, definite-lived
768.3 
549.3 
Weighted average amortization periods (years)
19 years 
18 years 8 months 
Other Intangible Assets [Member]
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
Gross Carrying Amount
16.6 
2.4 
Accumulated Amortization
(3.2)
(1.7)
Net Book Value, definite-lived
$ 13.4 
$ 0.7 
Weighted average amortization periods (years)
4 years 9 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, 2017
Dec. 31, 2016
In Process Research and Development [Member]
 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
Beginning balance
$ 1.5 
$ 1.6 
Completed
0 
0 
Abandoned
(1.7)
0 
Acquired
2.3 
0 
Foreign currency translation
0.2 
(0.1)
Ending balance
$ 2.3 
$ 1.5 
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
 
2018
$ 110.8 
2019
109.5 
2020
109.3 
2021
108.7 
2022
$ 106.5 
Restructuring - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
 
 
 
Accelerated depreciation
$ 4.3 
 
 
Impairments
$ 7.6 
$ 10.5 
$ 30.6 
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, 2017
Dec. 31, 2016
Dec. 31, 2015
Restructuring and Related Activities [Abstract]
 
 
 
Beginning balance
$ 66.1 
$ 41.3 
$ 48.5 
Expense recorded
36.2 
58.5 
31.9 
Payments made
(36.1)
(31.0)
(33.8)
Foreign currency translation
6.8 
(2.7)
(5.3)
Venezuela deconsolidation impact
(1.5)
 
 
Ending balance
$ 71.5 
$ 66.1 
$ 41.3 
Commitments and Contingencies - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Operating leases, rent expense, net
$ 52.7 
$ 48.0 
$ 48.2 
Outstanding bank guarantees
15.2 
11.1 
 
Bank guarantees liability recorded
$ 0 
$ 0 
 
Commitments and Contingencies - Schedule if Sales Leaseback Transactions (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
 
2018 Sales Leaseback Payments
$ 5.3 
2019 Sales Leaseback Payments
5.4 
2020 Sales Leaseback Payments
5.4 
2021 Sales Leaseback Payments
5.5 
2022 Sales Leaseback Payments
5.8 
Thereafter Sales Leaseback Payments
83.4 
Sales Leaseback Total Minimum Lease Payments
$ 110.8 
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
 
2018 Operating Lease Payment
$ 41.8 
2019 Operating Lease Payment
26.6 
2020 Operating Lease Payment
19.4 
2021 Operating Lease Payment
14.9 
2022 Operating Lease Payment
11.8 
Thereafter Operating Lease Payments
20.2 
Operating Lease Total Minimum Payments
$ 134.7 
Long-term Employee Benefits - Additional Information (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
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% 
 
 
Defined contribution plan, employer contribution amount
$ 45,100,000 
$ 43,300,000 
$ 36,700,000 
VENEZUELA
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Accumulated other loss, before tax
8,500,000 
 
 
AOCI loss due to Venezuela deconsolidation, net of tax
(5,900,000)
 
 
Other Postretirement Benefits Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Other post-employeement benefit obligation
 
 
0 
Net periodic benefit cost (credit)
 
 
3,400,000 
Amortization of prior service credit
 
 
3,700,000 
Settlement gain (loss)
 
 
(300,000)
Discount rate to determine benefit obligation
 
 
1.50% 
Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Other post-employeement benefit obligation
636,900,000 
547,600,000 
541,700,000 
Net periodic benefit cost (credit)
(10,400,000)
(12,200,000)
(15,100,000)
Amortization of prior service credit
0 
0 
100,000 
Discount rate to determine benefit obligation
2.13% 
2.52% 
3.05% 
Accumulated other loss, before tax
43,800,000 
75,700,000 
 
Estimated future employer contribution
$ 16,200,000 
 
 
Pension Plan [Member] |
Scenario, Forecast [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Rate of return on plan assets to determine net cost
4.47% 
 
 
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 $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Accrued pensions
$ (279,100,000)
$ (249,100,000)
 
Pension Plan [Member]
 
 
 
Change in benefit obligation:
 
 
 
Projected benefit obligation at beginning of year
547,600,000 
541,700,000 
 
Service cost
9,000,000 
10,700,000 
12,000,000 
Interest cost
13,800,000 
15,100,000 
16,900,000 
Participant contributions
1,300,000 
1,000,000 
 
Actuarial losses (gains), net
(13,800,000)
57,400,000 
 
Plan curtailments, settlements and special termination benefits
(12,900,000)
(2,000,000)
 
Benefits paid
(23,300,000)
(21,800,000)
 
Business combinations and other adjustments
51,200,000 
0 
 
Currency translation adjustment
64,000,000 
(54,500,000)
 
Projected benefit obligation at end of year
636,900,000 
547,600,000 
541,700,000 
Change in plan assets:
 
 
 
Fair value of plan assets at:
288,700,000 
278,400,000 
 
Actual return on plan assets
22,200,000 
41,100,000 
 
Employer contributions
27,400,000 
27,000,000 
 
Participant contributions
1,300,000 
1,000,000 
 
Benefits paid
23,300,000 
21,800,000 
 
Settlements
(13,900,000)
(1,200,000)
 
Business combinations and other adjustments
32,400,000 
0 
 
Currency translation adjustment
30,200,000 
(35,800,000)
 
Fair value of plan assets at:
365,000,000 
288,700,000 
278,400,000 
Funded status, net
(271,900,000)
(258,900,000)
 
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Other assets
19,200,000 
300,000 
 
Other accrued liabilities
(12,000,000)
(10,100,000)
 
Accrued pensions
(279,100,000)
(249,100,000)
 
Net amount recognized
$ (271,900,000)
$ (258,900,000)
 
Long-term Employee Benefits - Schedule of Accumulated and Projected Benefit Obligations (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
ABO
$ 605.4 
$ 516.4 
Plans with PBO in excess of plan assets:
 
 
PBO
401.2 
542.6 
ABO
370.0 
511.6 
Fair value plan assets
110.1 
283.4 
Plans with ABO in excess of plan assets:
 
 
PBO
393.3 
488.2 
ABO
364.9 
461.3 
Fair value plan assets
$ 104.7 
$ 232.6 
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, 2017
Dec. 31, 2016
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated net actuarial losses
$ (46.4)
$ (76.6)
Accumulated prior service credit
2.6 
0.9 
Total
$ (43.8)
$ (75.7)
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
Dec. 31, 2017
Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Amortization of net actuarial losses
$ (1.2)
Amortization of prior service credit
0.1 
Total
$ (1.1)
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
$ (31.3)
$ 28.9 
$ 2.2 
Pension Plan [Member]
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
9.0 
10.7 
12.0 
Interest cost
13.8 
15.1 
16.9 
Expected return on plan assets
(15.0)
(12.6)
(14.6)
Amortization of actuarial loss, net
1.4 
0.4 
0.4 
Amortization of prior service credit
0 
0 
(0.1)
Curtailment gain
0 
(1.1)
0 
Settlement (gain) loss
0.2 
(0.5)
0.5 
Special termination benefit loss
1.0 
0.2 
0 
Net periodic benefit cost
10.4 
12.2 
15.1 
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
Net actuarial (gain) loss, net
(20.6)
27.7 
(3.4)
Prior service (credit) cost
(1.2)
0 
2.7 
Amortization of prior service credit
0 
0 
0.1 
Curtailment gain
0 
1.1 
0 
Settlement gain (loss)
(0.2)
0.5 
(0.5)
Other adjustments
(7.9)
0 
0 
Total (gain) loss recognized in other comprehensive (income) loss
(31.3)
28.9 
(1.5)
Total recognized in net periodic benefit cost and comprehensive (income) loss
$ (20.9)
$ 41.1 
$ 13.6 
Long-term Employee Benefits - Schedule of Assumptions Used (Details) (Pension Plan [Member])
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine benefit obligation
2.13% 
2.52% 
3.05% 
Discount rate to determine net cost
2.52% 
3.05% 
3.23% 
Rate of future compensation increases to determine benefit obligation
2.69% 
3.07% 
3.03% 
Rate of future compensation increases to determine net cost
3.07% 
3.03% 
3.57% 
Rate of return on plan assets to determine net cost
4.73% 
4.75% 
5.21% 
Long-term Employee Benefits - Schedule of Expected Benefit Payments (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2018
$ 29.7 
2019
32.2 
2020
32.2 
2021
31.1 
2022
32.1 
2023—2027
$ 189.0 
Long-term Employee Benefits - Schedule of Allocation of Plan Assets (Details) (Pension Plan [Member])
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Minimum [Member] |
Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
25.00% 
30.00% 
Target Allocation
.25 
 
Minimum [Member] |
Debt Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
20.00% 
35.00% 
Target Allocation
.20 
 
Minimum [Member] |
Real Estate [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
0.00% 
0.00% 
Target Allocation
0 
 
Minimum [Member] |
Other Assets [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
45.00% 
25.00% 
Target Allocation
.45 
 
Maximum [Member] |
Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
30.00% 
35.00% 
Target Allocation
.30 
 
Maximum [Member] |
Debt Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
25.00% 
40.00% 
Target Allocation
.25 
 
Maximum [Member] |
Real Estate [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
5.00% 
5.00% 
Target Allocation
.05 
 
Maximum [Member] |
Other Assets [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual plan asset allocations
50.00% 
30.00% 
Target Allocation
.50 
 
Long-term Employee Benefits - Schedule of Fair Value of Defined Benefit Pension Plan Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 158.0 
$ 77.5 
$ 74.1 
Private Equity Funds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
135.7 
64.1 
63.3 
Real Estate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
13.5 
11.2 
8.5 
Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
365.0 
288.7 
278.4 
Pension Plan [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
163.1 
176.4 
 
Pension Plan [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
24.4 
18.6 
 
Pension Plan [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
158.0 
77.5 
 
Pension Plan [Member] |
Cash and Cash Equivalents [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
3.7 
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
3.7 
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
33.3 
30.7 
 
Pension Plan [Member] |
US Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
33.0 
30.7 
 
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
0.3 
0 
 
Pension Plan [Member] |
Foreign Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
76.4 
63.9 
 
Pension Plan [Member] |
Foreign Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
73.4 
63.5 
 
Pension Plan [Member] |
Foreign Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1.2 
0.3 
 
Pension Plan [Member] |
Foreign Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1.8 
0.1 
 
Pension Plan [Member] |
US and Foreign Government Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
44.6 
60.9 
 
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
33.1 
48.0 
 
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
7.3 
12.9 
 
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
4.2 
0 
 
Pension Plan [Member] |
Corporate Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
32.8 
38.4 
 
Pension Plan [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
17.2 
31.0 
 
Pension Plan [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
13.1 
5.3 
 
Pension Plan [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
2.5 
2.1 
 
Pension Plan [Member] |
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
141.2 
64.6 
 
Pension Plan [Member] |
Private Equity Funds [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
2.7 
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
2.8 
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
135.7 
64.1 
 
Pension Plan [Member] |
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
13.5 
11.2 
 
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
13.5 
11.2 
 
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 
 
Pension Plan [Member] |
Defined Benefit Plan Assets, Excluding Pension Trust Receivables [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
345.5 
 
 
Pension Plan [Member] |
Asset-backed Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Investments at net asset value
10.9 
8.8 
 
Pension Plan [Member] |
Hedge Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Investments at net asset value
$ 8.6 
$ 7.4 
 
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, 2017
Dec. 31, 2016
Change in plan assets:
 
 
Fair value of plan assets at:
$ 77.5 
$ 74.1 
Realized (loss)
0 
0 
Change in unrealized gain
9.9 
1.3 
Purchases, sales, issues and settlements
70.6 
2.1 
Transfers in/(out) of Level 3
0 
0 
Fair value of plan assets at:
158.0 
77.5 
Private Equity Funds [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
64.1 
63.3 
Realized (loss)
0 
0 
Change in unrealized gain
8.3 
(1.4)
Purchases, sales, issues and settlements
63.3 
2.2 
Transfers in/(out) of Level 3
0 
0 
Fair value of plan assets at:
135.7 
64.1 
Debt and Equity [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
2.2 
2.3 
Realized (loss)
0 
0 
Change in unrealized gain
0.4 
(0.1)
Purchases, sales, issues and settlements
6.2 
0 
Transfers in/(out) of Level 3
0 
0 
Fair value of plan assets at:
8.8 
2.2 
Real Estate [Member]
 
 
Change in plan assets:
 
 
Fair value of plan assets at:
11.2 
8.5 
Realized (loss)
0 
0 
Change in unrealized gain
1.2 
2.8 
Purchases, sales, issues and settlements
1.1 
(0.1)
Transfers in/(out) of Level 3
0 
0 
Fair value of plan assets at:
$ 13.5 
$ 11.2 
Stock-based Compensation - Additional Information (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Employee Stock Option [Member]
Dec. 31, 2017
Restricted Stock and Restricted Stock Units [Member]
Dec. 31, 2016
Restricted Stock and Restricted Stock Units [Member]
Dec. 31, 2017
Performance Shares [Member]
Dec. 31, 2017
Performance Shares [Member]
Minimum [Member]
Dec. 31, 2017
Performance Shares [Member]
Maximum [Member]
Dec. 31, 2013
2013 Plan [Member]
Dec. 31, 2014
2014 Plan [Member]
Dec. 31, 2017
2014 Plan [Member]
Employee Stock Option [Member]
Dec. 31, 2016
2014 Plan [Member]
Employee Stock Option [Member]
Dec. 31, 2015
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
$ 38.5 
$ 41.1 
$ 30.2 
 
 
 
 
 
 
 
 
 
 
 
 
Tax benefit from compensation expense
12.1 
14.0 
10.7 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation attributable to accelerated vesting
 
 
8.2 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership percentage, less than
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
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)
$ 7.69 
$ 5.69 
$ 8.15 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period (in years)
3 years 
3 years 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
Expected term (in years)
6 years 
 
 
 
 
 
 
 
 
 
 
6 years 
6 years 
6 years 
 
Weighted average dividend rate
 
 
 
 
 
 
 
 
 
 
 
0.00% 
0.00% 
0.00% 
 
Proceeds from option exercises
24.8 
16.7 
62.4 
 
 
 
 
 
 
 
 
 
 
 
 
Tax benefit from exercise of stock options
13.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value on options exercised
42.2 
42.5 
166.8 
 
 
 
 
 
 
 
 
 
 
 
 
Vested in period, fair value
5.2 
3.4 
24.3 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost
4.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period for recognition of compensation not yet recognized (in years)
1 year 4 months 2 days 
 
 
 
1 year 6 months 1 day 
 
1 year 10 months 24 days 
 
 
 
 
 
 
 
 
Restricted stock grants in period (in shares)
 
 
 
 
800,000 
 
300,000 
 
 
 
 
 
 
 
 
Unrecognized compensation cost
 
 
 
 
18.2 
 
11.3 
 
 
 
 
 
 
 
 
Aggregate intrinsic value, vested
 
 
 
 
30.1 
5.5 
 
 
 
 
 
 
 
 
 
Vested in period, fair value
 
 
 
 
$ 29.4 
$ 6.2 
 
 
 
 
 
 
 
 
 
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, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected term
6 years 
 
 
Employee Stock Option [Member] |
2014 Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected term
6 years 
6 years 
6 years 
Volatility
21.75% 
21.63% 
22.19% 
Dividend Yield
0.00% 
0.00% 
0.00% 
Discount Rate
2.03% 
1.45% 
1.79% 
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, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Beginning balance (in shares)
9.6 
Granted (in shares)
0.9 
Exercised (in shares)
(2.2)
Forfeited (in shares)
(0.2)
Ending balance (in shares)
8.1 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
Beginning balance (in dollars per share)
$ 14.40 
Granted (in dollars per share)
$ 29.56 
Exercised (in dollars per share)
$ 11.42 
Forfeited (in dollars per share)
$ 28.29 
Ending balance (in dollars per share)
$ 16.54 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]
 
Vested and expected to vest (in shares)
8.1 
Vested and expected to vest, weighted average exercise price (in dollars per share)
$ 16.54 
Vested and expected to vest, aggregate intrinsic value
$ 128.3 
Vested and expected to vest, weighted average remaining contractual term (in years)
6 years 6 months 6 days 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
Exercisable (in shares)
6.3 
Exercisable, weighted average exercise price (in dollars per share)
$ 13.25 
Exercisable, aggregate intrinsic value
$ 119.9 
Exercisable, weighted average remaining contractual term (in years)
5 years 11 months 15 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, 2017
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)
2.3 
Granted (in shares)
0.8 
Vested (in shares)
(1.0)
Forfeited (in shares)
(0.2)
Ending balance (in shares)
1.9 
Beginning balance (in dollars per share)
$ 29.18 
Granted (in dollars per share)
$ 30.10 
Vested (in dollars per share)
$ 30.02 
Forfeited (in dollars per share)
$ 27.21 
Ending balance (in dollars per share)
$ 29.32 
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, 2017
Performance Shares [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
 
Beginning balance (in shares)
0.3 
Granted (in shares)
0.3 
Vested (in shares)
0 
Forfeited (in shares)
0 
Ending balance (in shares)
0.6 
Beginning balance (in dollars per share)
$ 27.74 
Granted (in dollars per share)
$ 38.11 
Vested (in dollars per share)
$ 0.00 
Forfeited (in dollars per share)
$ 0.00 
Ending balance (in dollars per share)
$ 31.17 
Other Expense, Net - Schedule of Other Non-operating Income (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Other Income and Expenses [Abstract]
 
 
 
Foreign exchange losses, net
$ 7.4 
$ 30.6 
$ 93.7 
Impairments
7.6 
10.5 
30.6 
Debt extinguishment and refinancing related costs
13.4 
97.6 
2.5 
Other miscellaneous expense (income), net
(2.7)
4.0 
(15.6)
Total
$ 25.7 
$ 142.7 
$ 111.2 
Other Expense, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
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
11.8 
4.3 
(5.5)
Other miscellaneous expense (income), net [Member] |
Foreign Exchange Contract [Member]
 
 
 
Other Income Expense [Line Items]
 
 
 
(Gain) loss on non-derivative instruments, net
0.2 
4.3 
(5.6)
Subsidiaries [Member]
 
 
 
Other Income Expense [Line Items]
 
 
 
Exchange gains (losses)
$ (1.8)
$ (23.5)
$ (51.5)
Income Taxes - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Jurisdiction
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Schedule Of Income Tax [Line Items]
 
 
 
 
Provisional income tax expense (benefit)
$ 107.8 
 
 
 
Deferred tax asset, provisional income tax expense
81.1 
 
 
 
Valuation allowance
26.1 
 
 
 
Tax credit carryforward
34.8 
26.0 
 
 
Valuation allowance
(214.2)
(135.4)
 
 
Unrecognized tax benefits
17.2 
12.3 
4.7 
5.3 
Unrecognized tax benefits that would impact effective tax rate
9.7 
8.5 
4.7 
 
Penalties and interest expense
0.1 
0.3 
0.4 
 
Penalties and interest accrued
1.2 
1.1 
0.7 
 
Number of foreign income tax jurisdictions
47 
 
 
 
Unrecognized tax benefits, including interest and penalties
18.4 
13.4 
5.4 
 
LUXEMBOURG AND THE NETHERLANDS
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating loss carryforwards
155.7 
113.8 
 
 
NETHERLANDS
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Carryforward period (in years)
9 years 
 
 
 
Interest Expense [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Tax credit carryforward
12.4 
17.7 
 
 
Foreign Tax Authority [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating loss carryforwards
176.4 
152.8 
 
 
Operating and capital loss carryforwards with no expiration
84.9 
63.2 
 
 
Operating and capital loss carryforwards, subject to expiration
91.5 
89.6 
 
 
Tax credit carryforward
1.8 
1.9 
 
 
Valuation allowance
(26.1)
 
 
 
Foreign Tax Authority [Member] |
Indefinite Carryforward Period [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Tax credit carryforward
1.5 
1.8 
 
 
Domestic Tax Authority [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating and capital loss carryforwards, subject to expiration
37.2 
62.8 
 
 
Valuation allowance
(188.1)
 
 
 
State and Local Jurisdiction [Member]
 
 
 
 
Schedule Of Income Tax [Line Items]
 
 
 
 
Operating and capital loss carryforwards, subject to expiration
$ 2.7 
$ 2.5 
 
 
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Domestic
$ 41.8 
$ 27.9 
$ (22.5)
Foreign
147.8 
54.8 
180.4 
Income before income taxes
$ 189.6 
$ 82.7 
$ 157.9 
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
U.S. federal
$ 4.6 
$ 0.9 
$ 0 
U.S. state and local
1.7 
3.7 
3.1 
Foreign
43.9 
49.4 
65.2 
Total
50.2 
54.0 
68.3 
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
U.S. federal
102.8 
(1.3)
17.8 
U.S. state and local
0.4 
8.2 
8.5 
Foreign
(11.5)
(22.8)
(32.5)
Total
91.7 
(15.9)
(6.2)
U.S. federal
107.4 
(0.4)
17.8 
U.S. state and local
2.1 
11.9 
11.6 
Foreign
32.4 
26.6 
32.7 
Total
$ 141.9 
$ 38.1 
$ 62.1 
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
Statutory U.S. federal income tax rate
$ 66.4 
$ 29.0 
$ 55.2 
Foreign income taxed at rates other than 35%
(56.2)
(45.6)
(41.4)
Changes in valuation allowances
45.3 
9.6 
34.4 
Foreign exchange gain (loss), net
(17.7)
3.1 
(10.5)
Unrecognized tax benefits
3.1 
7.1 
0.4 
Foreign taxes
4.1 
4.5 
5.8 
Non-deductible interest
9.8 
6.7 
4.9 
Non-deductible expenses
4.6 
4.7 
5.5 
Tax credits
(4.2)
(6.7)
(5.5)
Excess tax benefits relating to share-based compensation
(13.1)
(13.4)
0 
Venezuela deconsolidation and impairment
(2.0)
23.8 
10.7 
U.S. state and local taxes, net
1.3 
7.8 
8.1 
U.S. tax reform
107.8 
0 
0 
Other - net
(7.3)
7.5 
(5.5)
Total
$ 141.9 
$ 38.1 
$ 62.1 
Effective Income Tax Rate Reconciliation, Percent [Abstract]
 
 
 
Statutory U.S. federal income tax rate
35.00% 
35.00% 
35.00% 
Foreign income taxed at rates other than 35%
(29.60%)
(55.10%)
(26.20%)
Changes in valuation allowances
23.90% 
11.60% 
21.80% 
Foreign exchange gain (loss), net
(9.30%)
3.70% 
(6.60%)
Unrecognized tax benefits
1.60% 
8.60% 
0.30% 
Foreign taxes
2.20% 
5.40% 
3.70% 
Non-deductible interest
5.20% 
8.10% 
3.10% 
Non-deductible expenses
2.40% 
5.70% 
3.50% 
Tax credits
(2.20%)
(8.10%)
(3.50%)
Excess tax benefits relating to share-based compensation
(6.90%)
(16.20%)
0.00% 
Venezuela deconsolidation and impairment
(1.10%)
28.80% 
6.80% 
U.S. state and local taxes, net
0.70% 
9.40% 
5.10% 
U.S. tax reform
56.90% 
0.00% 
0.00% 
Other - net
(4.00%)
9.20% 
(3.70%)
Total income tax provision / effective tax rate
74.80% 
46.10% 
39.30% 
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Deferred tax asset
 
 
Tax loss, credit and interest carryforwards
$ 265.3 
$ 263.7 
Deferred Tax Assets, Goodwill and Intangible Assets
0 
48.1 
Compensation and employee benefits
86.0 
92.8 
Accruals and other reserves
33.9 
40.0 
Research and development capitalization
8.9 
15.7 
Deferred Tax Assets, Equity Method Investments
26.4 
(0.7)
Other
10.9 
16.4 
Total deferred tax assets
431.4 
476.0 
Less: Valuation allowance
(214.2)
(135.4)
Net deferred tax assets
217.2 
340.6 
Deferred tax liabilities
 
 
Deferred Tax Liabilities, Goodwill and Intangible Assets
(15.2)
0 
Property, plant and equipment
(146.9)
(168.4)
Unremitted earnings
(7.4)
(5.8)
Long-term debt
(2.2)
(4.2)
Total deferred tax liabilities
(171.7)
(178.4)
Net deferred tax asset
45.5 
162.2 
Deferred Tax Assets, Net, Classification [Abstract]
 
 
Non-current assets
198.4 
322.4 
Non-current liability
(152.9)
(160.2)
Net deferred tax asset
$ 45.5 
$ 162.2 
Income Taxes - Schedule of Total Gross Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Beginning Balance
$ 12.3 
$ 4.7 
$ 5.3 
Increases related to positions taken on items from prior years
1.9 
0 
0 
Decreases related to positions taken on items from prior years
0 
(0.2)
(0.6)
Increases related to positions taken in the current year
3.0 
7.8 
0 
Ending Balance
$ 17.2 
$ 12.3 
$ 4.7 
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, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to controlling interests
$ (61.5)
$ 54.9 
$ (20.8)
$ 64.1 
$ (37.2)
$ (6.6)
$ 50.7 
$ 31.9 
$ 36.7 
$ 38.8 
$ 91.6 
Basic weighted average shares outstanding (in dollars per share)
 
 
 
 
 
 
 
 
240.4 
238.1 
233.8 
Diluted weighted average shares outstanding (in dollars per share)
 
 
 
 
 
 
 
 
246.1 
244.4 
239.7 
Net income per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic net income per share (in dollars per share)
$ (0.26)
$ 0.23 
$ (0.09)
$ 0.27 
$ (0.16)
$ (0.03)
$ 0.21 
$ 0.13 
$ 0.15 
$ 0.16 
$ 0.39 
Diluted net income per share (in dollars per share)
$ (0.26)
$ 0.22 
$ (0.09)
$ 0.26 
$ (0.16)
$ (0.03)
$ 0.21 
$ 0.13 
$ 0.15 
$ 0.16 
$ 0.38 
Earnings Per Common Share - Additional Information (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Share [Abstract]
 
 
 
Antidilutive securities excluded from computation of earnings per share (in shares)
1.8 
1.3 
0.7 
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Receivables [Abstract]
 
 
Accounts receivable—trade, net
$ 748.2 
$ 640.4 
Notes receivable
29.4 
68.7 
Other
92.6 
92.8 
Total
$ 870.2 
$ 801.9 
Accounts and Notes Receivable, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Receivables [Abstract]
 
 
 
Allowance for doubtful accounts
$ 15.9 
$ 13.7 
 
Bad debt expense
$ 3.5 
$ 3.4 
$ 4.9 
Inventories - Schedule of Inventory (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]
 
 
Finished products
$ 347.5 
$ 315.2 
Semi-finished products
95.5 
87.5 
Raw materials and supplies
165.6 
127.0 
Inventories
$ 608.6 
$ 529.7 
Inventories - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]
 
 
Stores and supplies inventories
$ 20.8 
$ 20.2 
Net Property, Plant and Equipment - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
 
Depreciation
$ 176.6 
$ 176.8 
$ 169.1 
Net Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
Land
Dec. 31, 2016
Land
Dec. 31, 2017
Buildings and improvements
Dec. 31, 2016
Buildings and improvements
Dec. 31, 2017
Machinery and equipment
Dec. 31, 2016
Machinery and equipment
Dec. 31, 2017
Software
Dec. 31, 2016
Software
Dec. 31, 2017
Other
Dec. 31, 2016
Other
Dec. 31, 2017
Construction in progress
Dec. 31, 2016
Construction in progress
Dec. 31, 2017
Minimum [Member]
Buildings and improvements
Dec. 31, 2017
Minimum [Member]
Machinery and equipment
Dec. 31, 2017
Minimum [Member]
Software
Dec. 31, 2017
Minimum [Member]
Other
Dec. 31, 2017
Maximum [Member]
Buildings and improvements
Dec. 31, 2017
Maximum [Member]
Machinery and equipment
Dec. 31, 2017
Maximum [Member]
Software
Dec. 31, 2017
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
$ 2,193.6 
$ 1,933.0 
$ 87.6 
$ 85.2 
$ 516.3 
$ 454.0 
$ 1,244.0 
$ 1,087.5 
$ 155.3 
$ 139.7 
$ 41.7 
$ 35.6 
$ 148.7 
$ 131.0 
 
 
 
 
 
 
 
 
Accumulated depreciation
(805.0)
(617.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
$ 1,388.6 
$ 1,315.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Available for sale securities
$ 5.2 
$ 4.4 
Deferred income taxes—non-current
198.4 
322.4 
Other assets
225.0 
209.3 
Total
$ 428.6 
$ 536.1 
Accounts Payable (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Payables and Accruals [Abstract]
 
 
Trade payables
$ 510.7 
$ 429.5 
Non-income taxes
27.0 
27.2 
Other
17.2 
17.5 
Total
$ 554.9 
$ 474.2 
Other Accrued Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Payables and Accruals [Abstract]
 
 
 
 
Compensation and other employee-related costs
$ 153.3 
$ 145.8 
 
 
Current portion of long-term employee benefit plans
12.0 
10.1 
 
 
Restructuring
71.5 
66.1 
41.3 
48.5 
Discounts, rebates, and warranties
138.8 
119.8 
 
 
Income taxes payable
22.2 
23.3 
 
 
Derivative liabilities
3.3 
1.3 
 
 
Other
88.5 
73.6 
 
 
Total
$ 489.6 
$ 440.0 
 
 
Borrowings - Schedule of Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
2024 Dollar Term Loans [Member]
Jun. 1, 2017
2024 Dollar Term Loans [Member]
Dec. 31, 2016
2024 Dollar Term Loans [Member]
Dec. 31, 2017
2023 Dollar Term Loan [Member]
Dec. 31, 2016
2023 Dollar Term Loan [Member]
Dec. 31, 2017
2023 Euro Term Loan [Member]
Dec. 31, 2016
2023 Euro Term Loan [Member]
Dec. 31, 2017
2024 Dollar Senior Notes [Member]
Dec. 31, 2016
2024 Dollar Senior Notes [Member]
Aug. 16, 2016
2024 Dollar Senior Notes [Member]
Dec. 31, 2017
2024 Euro Senior Notes [Member]
Dec. 31, 2016
2024 Euro Senior Notes [Member]
Dec. 31, 2017
2025 Euro Senior Notes [Member]
Dec. 31, 2016
2025 Euro Senior Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
 
 
$ 1,960.0 
 
$ 0 
$ 0 
$ 1,545.0 
$ 472.5 
$ 417.6 
 
 
 
 
 
 
 
Senior Notes
 
 
 
 
 
 
 
 
 
500.0 
500.0 
 
399.7 
349.7 
536.9 
469.8 
Short-term and other borrowings
94.8 
39.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized original issue discount
(9.1)
(10.0)
 
(2.5)
 
 
 
 
 
 
 
(2.0)
 
 
 
 
Unamortized deferred financing costs
(39.2)
(48.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and Capital Lease Obligations
3,915.6 
3,263.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
12.9 
8.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term borrowings
24.8 
19.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term borrowings
$ 3,877.9 
$ 3,236.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings - Senior Secured Credit Facilities (Details)
0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended 3 Months Ended 7 Months Ended 12 Months Ended 7 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Aug. 16, 2016
Aug. 1, 2016
Feb. 3, 2014
USD ($)
Sep. 30, 2014
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Aug. 1, 2016
Revolving Credit Facility [Member]
Dec. 31, 2017
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2016
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2015
Revolving Credit Facility [Member]
USD ($)
Aug. 1, 2016
Revolving Credit Facility [Member]
Jul. 31, 2016
Revolving Credit Facility [Member]
Oct. 31, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Apr. 30, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Sep. 30, 2014
Dollar Term Loan Due 2020 [Member]
Oct. 31, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Dec. 31, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Dec. 31, 2015
Dollar Term Loan Due 2020 [Member]
USD ($)
Dec. 15, 2016
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
USD ($)
Oct. 31, 2016
Dollar Term Loan Due 2020 [Member]
Write off of Original Issue Discounts [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 ($)
Dec. 14, 2016
Dollar Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Dec. 14, 2016
Dollar Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Dec. 14, 2016
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Dec. 14, 2016
Dollar Term Loan Due 2020 [Member]
Base Rate [Member]
Dec. 14, 2016
Dollar Term Loan Due 2020 [Member]
Base Rate [Member]
Dec. 14, 2016
Euro Term Loan Due 2020 [Member]
Sep. 30, 2016
Euro Term Loan Due 2020 [Member]
EUR (€)
Sep. 30, 2014
Euro Term Loan Due 2020 [Member]
Dec. 15, 2016
Euro Term Loan Due 2020 [Member]
EUR (€)
Dec. 14, 2016
Euro Term Loan Due 2020 [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
EUR (€)
Dec. 14, 2016
Euro Term Loan Due 2020 [Member]
Eurocurrency Rate Loans [Member]
Jun. 1, 2017
2023 Dollar Term Loan [Member]
USD ($)
Dec. 15, 2016
2023 Dollar Term Loan [Member]
USD ($)
May 31, 2017
2023 Dollar Term Loan [Member]
Eurocurrency Rate Loans [Member]
May 31, 2017
2023 Dollar Term Loan [Member]
Interest Rate Floor [Member]
May 31, 2017
2023 Dollar Term Loan [Member]
Base Rate [Member]
Dec. 31, 2017
2023 Euro Term Loan [Member]
Dec. 15, 2016
2023 Euro Term Loan [Member]
EUR (€)
May 31, 2017
2023 Euro Term Loan [Member]
Eurocurrency Rate Loans [Member]
May 31, 2017
2023 Euro Term Loan [Member]
Base Rate [Member]
Dec. 31, 2017
2024 Dollar Term Loans [Member]
USD ($)
Jun. 1, 2017
2024 Dollar Term Loans [Member]
USD ($)
Jun. 1, 2017
2024 Dollar Term Loans [Member]
Eurocurrency Rate Loans [Member]
Jun. 1, 2017
2024 Dollar Term Loans [Member]
Interest Rate Floor [Member]
Eurocurrency Rate Loans [Member]
Jun. 1, 2017
2024 Dollar Term Loans [Member]
Base Rate [Member]
Aug. 16, 2016
Senior Secured Credit Facilities [Member]
Revolving Credit Facility [Member]
Feb. 3, 2014
Senior Secured Credit Facilities [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facilities [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Dec. 31, 2017
Senior Secured Credit Facilities [Member]
Eurodollar [Member]
Revolving Credit Facility [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]
Federal Funds Effective Swap Rate [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Adjusted Euro Currency Rate [Member]
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument Basis Spread Reduced On Variable Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, long-term and short-term, combined amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,775,300,000 
$ 2,282,800,000 
 
 
 
 
 
 
 
 
 
 
 
€ 199,000,000 
 
€ 397,000,000 
 
$ 1,541,100,000 
$ 1,545,000,000 
 
 
 
 
€ 400,000,000 
 
 
 
$ 2,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.75% 
 
 
 
 
 
 
 
 
3.00% 
 
1.00% 
2.00% 
 
 
 
3.00% 
 
 
 
3.25% 
 
 
2.50% 
0.75% 
1.50% 
 
 
2.25% 
0.75% 
 
 
2.00% 
0.00% 
1.00% 
2.75% 
3.50% 
0.00% 
 
1.75% 
2.50% 
 
0.50% 
1.00% 
Interest rate, effective percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument covenant maximum consolidated leverage ratio
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 
5.50 
3.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
 
 
1.50% 
 
 
Basis spread reduced on variable rate, step-down percent for 2.50:1.00 leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.25% 
 
 
1.25% 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
400,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum amount outstanding during period
 
 
 
 
 
 
 
 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding, amount
 
 
 
 
 
 
 
 
35,500,000 
21,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
 
364,500,000 
378,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains (losses) on extinguishment of debt
 
 
 
 
(13,000,000)
(88,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of Long-term Debt
 
 
 
 
50,000,000 
1,755,700,000 
127,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
 
 
 
 
13,400,000 
97,600,000 
2,500,000 
 
 
2,300,000 
 
 
 
 
 
 
9,600,000 
4,200,000 
2,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains (losses) on restructuring of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(10,400,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Write off of deferred debt issuance cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,100,000 
4,700,000 
1,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of debt discount (premium)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000 
1,500,000 
700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
150,000,000 
100,000,000 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount, percent of par
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
99.875% 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized discount
 
 
 
 
$ 9,100,000 
$ 10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Feb. 1, 2013
7.375% Senior Unsecured Notes Due 2021 [Member]
Feb. 1, 2013
5.750% Senior Secured Notes Due 2021 [Member]
Dec. 31, 2017
2021 Dollar Senior Notes [Member]
2016 [Member]
Dec. 31, 2016
Euro Senior Notes [Member]
2016 [Member]
Feb. 1, 2013
2024 Dollar Senior Notes [Member]
Dec. 31, 2017
2024 Dollar Senior Notes [Member]
2016 [Member]
Dec. 31, 2017
2021 Dollar Senior Notes [Member]
USD ($)
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, 2017
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, 2017
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, 2017
2025 Euro Senior Notes [Member]
Sep. 27, 2016
2025 Euro Senior Notes [Member]
EUR (€)
Dec. 31, 2017
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% 
 
3.75% 
3.75% 
 
Debt instrument, redemption price, percentage
 
 
 
 
 
105.531% 
104.313% 
101.00% 
103.656% 
 
 
 
 
104.875% 
 
 
104.25% 
 
 
103.75% 
 
 
Gains (losses) on extinguishment of debt
(13.4)
(97.6)
(2.5)
 
 
 
 
 
 
(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
$ 9.1 
$ 10.0 
 
 
 
 
 
 
 
 
 
 
 
 
$ 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, 2017
2024 Dollar Senior Notes [Member]
2019 [Member]
Dec. 31, 2017
2024 Dollar Senior Notes [Member]
2020 [Member]
Dec. 31, 2017
2024 Dollar Senior Notes [Member]
2021 [Member]
Dec. 31, 2017
2024 Dollar Senior Notes [Member]
2022 [Member]
Dec. 31, 2017
2024 Euro Senior Notes [Member]
2019 [Member]
Dec. 31, 2017
2024 Euro Senior Notes [Member]
2020 [Member]
Dec. 31, 2017
2024 Euro Senior Notes [Member]
2021 [Member]
Dec. 31, 2017
2024 Euro Senior Notes [Member]
2022 [Member]
Dec. 31, 2017
2025 Euro Senior Notes [Member]
2019 [Member]
Dec. 31, 2017
2025 Euro Senior Notes [Member]
2020 [Member]
Dec. 31, 2017
2025 Euro Senior Notes [Member]
2021 [Member]
Dec. 31, 2017
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, 2017
Debt Instrument [Line Items]
 
2018
$ 40.5 
2019
26.5 
2020
25.7 
2021
25.7 
2022
52.4 
Thereafter
3,778.6 
Long-term debt
3,949.4 
Lease obligations
134.7 
Build-to-suit Lease and Sale-leaseback Financing [Member]
 
Debt Instrument [Line Items]
 
Lease obligations
$ 14.5 
Fair Value Accounting (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Impairments
$ 7.6 
$ 10.5 
$ 30.6 
Available-for-sale securities
5.2 
4.4 
 
Contingent consideration, fair value
8.9 
10.0 
 
Adjustments to contingent consideration
3.0 
(0.8)
 
2024 Dollar Senior Notes [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
524.4 
500.0 
 
2024 Euro Senior Notes [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
427.7 
363.8 
 
2025 Euro Senior Notes [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
571.8 
472.2 
 
2024 Dollar Term Loans [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
1,967.4 
 
 
2023 Euro Term Loan [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
475.5 
421.8 
 
2023 Dollar Term Loan [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Long-term debt, fair value
 
1,560.5 
 
In Process Research and Development [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill and intangible asset impairment
1.7 
0 
0.1 
Subsidiaries [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Impairments of property, plant and equipment
 
10.5 
 
VENEZUELA |
Subsidiaries [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Operating asset impairment
 
$ 57.9 
 
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, 2017
Dec. 31, 2016
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
$ 1.2 
$ 0.1 
Derivative liability
2.6 
0.8 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Prepaid Expenses and Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0 
0.1 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
0 
0.8 
Designated as Hedging Instrument [Member] |
Interest Rate Cap [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
1.2 
0 
Designated as Hedging Instrument [Member] |
Interest Rate Cap [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
2.6 
0 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0 
0.1 
Derivative liability
0.7 
0.5 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Prepaid Expenses and Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0 
0.1 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
$ 0.7 
$ 0.5 
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, 2017
Dec. 31, 2016
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Amount of Loss Recognized in OCI on Derivatives (Effective Portion)
$ 1.8 
$ 2.0 
$ 5.5 
Interest Expense [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion)
(0.4)
5.9 
6.5 
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)
$ (2.3)
$ 1.2 
$ 0.4 
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
(Gain) loss on non-derivative instruments, net
$ 11.8 
$ 4.3 
$ (5.5)
Other Nonoperating Income (Expense) [Member] |
Foreign Exchange Contract [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
(Gain) loss on non-derivative instruments, net
11.2 
4.3 
(5.6)
Interest Expense [Member] |
Interest Rate Cap [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
(Gain) loss on non-derivative instruments, net
$ 0.6 
$ 0 
$ 0.1 
Derivative Financial Instruments - Additional Information (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
swap
Dec. 31, 2013
swap
Dec. 31, 2017
2024 Dollar Term Loans [Member]
Dec. 31, 2013
Euro Term Loan Due 2020 [Member]
EUR (€)
Sep. 30, 2017
2023 Euro Term Loan [Member]
USD ($)
Dec. 31, 2017
Interest Rate Swap [Member]
Dec. 31, 2013
Interest Rate Swap [Member]
USD ($)
Dec. 31, 2017
Interest Rate Cap [Member]
USD ($)
Dec. 31, 2013
Interest Rate Cap [Member]
Euro Term Loan Due 2020 [Member]
USD ($)
Sep. 30, 2017
2023 Euro Term Loan [Member]
EUR (€)
Dec. 31, 2017
December 31, 2019 [Member]
Interest Rate Cap [Member]
USD ($)
Dec. 31, 2017
December 31, 2019 [Member]
Interest Rate Cap [Member]
USD ($)
Derivatives, Fair Value [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Number of interest rate swaps
 
5 
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
€ 300.0 
 
 
$ 1,173.0 
$ 850.0 
 
€ 388.0 
$ 600.0 
$ 250.0 
Deferred premium
 
 
 
 
 
 
 
 
 
 
8.6 
8.1 
Derivative, maturity date
 
 
 
 
 
Sep. 29, 2017 
 
 
 
 
 
 
Number of interest rate caps
4 
 
 
 
 
 
 
 
 
 
 
 
Cap interest rate
 
 
1.50% 
1.50% 
1.25% 
 
 
 
 
 
 
 
Debt instrument, unamortized premium
 
 
 
 
$ 0.6 
 
 
 
$ 3.1 
 
 
 
Segments - Reconciliation of Revenue from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Segment
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Number of operating segments
2 
 
 
Net sales
$ 4,352.9 
$ 4,068.8 
$ 4,083.9 
Performance Coatings [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
2,675.1 
2,398.5 
2,381.8 
Performance Coatings [Member] |
Refinish [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
1,645.2 
1,679.7 
1,698.7 
Performance Coatings [Member] |
Industrial [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
1,029.9 
718.8 
683.1 
Transportation Coatings [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
1,677.8 
1,670.3 
1,702.1 
Transportation Coatings [Member] |
Light Vehicle [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
1,322.8 
1,337.7 
1,310.6 
Transportation Coatings [Member] |
Commercial Vehicle [Member]
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
Net sales
$ 355.0 
$ 332.6 
$ 391.5 
Segments - Schedule of Segment Reporting Information, by Segment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
Net sales
$ 4,352.9 
$ 4,068.8 
$ 4,083.9 
Equity in earnings (losses) in unconsolidated affiliates
1.0 
0.2 
1.2 
Adjusted EBITDA
885.2 
902.4 
863.9 
Investment in unconsolidated affiliates
15.5 
13.6 
12.4 
Performance Coatings [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net sales
2,675.1 
2,398.5 
2,381.8 
Equity in earnings (losses) in unconsolidated affiliates
0.3 
(0.2)
0.6 
Adjusted EBITDA
564.2 
549.7 
535.8 
Investment in unconsolidated affiliates
2.9 
2.5 
4.0 
Transportation Coatings [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net sales
1,677.8 
1,670.3 
1,702.1 
Equity in earnings (losses) in unconsolidated affiliates
0.7 
0.4 
0.6 
Adjusted EBITDA
321.0 
352.7 
328.1 
Investment in unconsolidated affiliates
$ 12.6 
$ 11.1 
$ 8.4 
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Income before income taxes
 
$ 189.6 
$ 82.7 
$ 157.9 
Interest expense, net
 
147.0 
178.2 
196.5 
Depreciation and amortization
 
(347.5)
(322.1)
(307.7)
Adjusted EBITDA
 
684.1 
583.0 
662.1 
Debt extinguishment and refinancing related costs
 
13.4 
97.6 
2.5 
Foreign exchange remeasurement losses
 
7.4 
30.6 
93.7 
Long-term employee benefit plan adjustments
 
1.4 
1.5 
(0.3)
Termination benefits and other employee related costs
 
35.3 
61.8 
36.6 
Consulting and advisory fees
 
(0.1)
10.4 
23.9 
Transition-related costs
 
7.7 
0 
(3.4)
Offering and transactional costs
 
18.4 
6.0 
(1.5)
Stock-based compensation
 
38.5 
41.1 
30.2 
Other Adjustments
 
3.6 
5.0 
(5.8)
Dividends in respect of noncontrolling interest
 
(3.0)
(3.0)
(4.7)
Deconsolidation Impacts and Impairment of Real Estate and Long Lived Operating Assets
 
78.5 
68.4 
30.6 
Adjusted Earnings Before Interest Tax Depreciation And Amortization
 
885.2 
902.4 
863.9 
Gains (losses) on extinguishment of debt
 
(13.0)
(88.0)
 
Loss on extinguishment of debt
 
13.4 
97.6 
2.5 
Contemplated merger and acquisition costs
 
10.0 
 
 
Stock-based compensation attributable to accelerated vesting
 
 
 
8.2 
Venezuela deconsolidation charge
 
70.9 
0 
0 
Impairments
 
7.6 
10.5 
30.6 
Term Loan [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Loss on extinguishment of debt
 
0.4 
9.6 
2.5 
VENEZUELA
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Exchange gains (losses)
 
(1.8)
(23.5)
(51.5)
Subsidiaries [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Exchange gains (losses)
 
(1.8)
(23.5)
(51.5)
Impairments of property, plant and equipment
 
 
10.5 
 
Subsidiaries [Member] |
VENEZUELA
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Operating asset impairment
 
 
57.9 
 
VENEZUELA |
Subsidiaries [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Venezuela deconsolidation charge
 
(70.9)
 
 
Operating asset impairment
 
 
68.4 
 
Impairments of property, plant and equipment
$ 10.5 
 
 
$ 30.6 
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, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
$ 4,352.9 
$ 4,068.8 
$ 4,083.9 
Long-lived assets
1,388.6 
1,315.7 
 
North America [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
1,607.7 
1,426.7 
1,368.6 
Long-lived assets
457.9 
419.3 
 
EMEA [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
1,538.3 
1,455.3 
1,425.3 
Long-lived assets
507.4 
456.9 
 
Asia Pacific [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
748.1 
723.9 
717.4 
Long-lived assets
258.9 
248.0 
 
Latin America [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net sales
458.8 
462.9 
572.6 
Long-lived assets
164.4 
191.5 
 
CHINA
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Long-lived assets
217.2 
204.0 
 
CHINA |
Sales Revenue, Net [Member] |
Geographic Concentration Risk [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Concentration risk, percentage
12.00% 
13.00% 
13.00% 
GERMANY
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Long-lived assets
279.0 
262.2 
 
GERMANY |
Sales Revenue, Net [Member] |
Geographic Concentration Risk [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Concentration risk, percentage
8.00% 
9.00% 
9.00% 
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
25.8 
20.0 
 
CANADA |
Sales Revenue, Net [Member] |
Geographic Concentration Risk [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Concentration risk, percentage
4.00% 
4.00% 
3.00% 
BRAZIL
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Long-lived assets
$ 78.6 
$ 94.9 
 
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
$ (350.4)
 
 
Other comprehensive income (loss), net of tax
111.6 
(81.2)
(169.6)
Accumulated other comprehensive income (loss), ending balance
(241.0)
(350.4)
 
Unrealized Currency Translation Adjustments
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
(292.2)
(232.8)
(72.1)
Current year deferrals to AOCI
83.4 
(59.4)
(160.7)
Reclassifications from AOCI to Net income
0 
0 
0 
Other comprehensive income (loss), net of tax
83.4 
(59.4)
(160.7)
Accumulated other comprehensive income (loss), ending balance
(208.8)
(292.2)
(232.8)
Pension Plan Adjustments
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
(56.6)
(33.4)
(31.2)
Current year deferrals to AOCI
17.1 
(22.3)
(4.3)
Reclassifications from AOCI to Net income
8.1 
(0.9)
2.1 
Other comprehensive income (loss), net of tax
25.2 
(23.2)
(2.2)
Accumulated other comprehensive income (loss), ending balance
(31.4)
(56.6)
(33.4)
Unrealized Gain on Securities
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
0.4 
0.1 
(0.2)
Current year deferrals to AOCI
0.4 
0.3 
0.3 
Reclassifications from AOCI to Net income
0 
0 
0 
Other comprehensive income (loss), net of tax
0.4 
0.3 
0.3 
Accumulated other comprehensive income (loss), ending balance
0.8 
0.4 
0.1 
Unrealized Gain (Loss) on Derivatives
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
(2.0)
(3.2)
0.2 
Current year deferrals to AOCI
(1.6)
(2.5)
0.6 
Reclassifications from AOCI to Net income
2.0 
3.7 
(4.0)
Other comprehensive income (loss), net of tax
0.4 
1.2 
(3.4)
Accumulated other comprehensive income (loss), ending balance
(1.6)
(2.0)
(3.2)
Accumulated Other Comprehensive Loss
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), beginning balance
(350.4)
(269.3)
(103.3)
Current year deferrals to AOCI
99.3 
(83.9)
(164.1)
Reclassifications from AOCI to Net income
10.1 
2.8 
(1.9)
Other comprehensive income (loss), net of tax
109.4 
(81.1)
(166.0)
Accumulated other comprehensive income (loss), ending balance
$ (241.0)
$ (350.4)
$ (269.3)
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Tax benefit on loss due to deconsolidation of Venezuela
$ (6.1)
$ (5.7)
$ 0 
Cumulative pension and other postretirement benefit plans, tax benefits
13.0 
19.1 
13.4 
Cumulative unrealized gain (loss) on derivatives, tax
0.6 
1.1 
1.9 
VENEZUELA
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
AOCI loss due to Venezuela deconsolidation, net of tax
(5.9)
 
 
Tax benefit on loss due to deconsolidation of Venezuela
$ 2.6 
 
 
Venezuela (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Venezuela deconsolidation charge
 
 
 
 
 
 
 
 
$ (70.9)
$ 0 
$ 0 
Assets
6,832.2 
 
 
 
5,866.2 
 
 
 
6,832.2 
5,866.2 
 
Accounts and notes receivable, net
870.2 
 
 
 
801.9 
 
 
 
870.2 
801.9 
 
Net sales
 
 
 
 
 
 
 
 
4,352.9 
4,068.8 
4,083.9 
Operating income (loss)
 
 
 
 
 
 
 
 
362.3 
403.6 
465.6 
Net income attributable to controlling interests
(61.5)
54.9 
(20.8)
64.1 
(37.2)
(6.6)
50.7 
31.9 
36.7 
38.8 
91.6 
Performance Coatings [Member]
 
 
 
 
 
 
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
2,675.1 
2,398.5 
2,381.8 
Transportation Coatings [Member]
 
 
 
 
 
 
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,677.8 
1,670.3 
1,702.1 
Subsidiaries [Member]
 
 
 
 
 
 
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Impairment of real estate investment
 
 
 
 
 
 
 
 
 
10.5 
 
Subsidiaries [Member] |
Performance Coatings [Member]
 
 
 
 
 
 
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating asset impairment
 
 
 
 
 
 
 
 
 
30.6 
 
Subsidiaries [Member] |
Transportation Coatings [Member]
 
 
 
 
 
 
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating asset impairment
 
 
 
 
 
 
 
 
 
27.3 
 
Subsidiaries [Member] |
Property, Plant and Equipment [Member]
 
 
 
 
 
 
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating asset impairment
 
 
 
 
 
 
 
 
 
8.6 
 
Subsidiaries [Member] |
Customer Lists [Member]
 
 
 
 
 
 
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating asset impairment
 
 
 
 
 
 
 
 
 
49.3 
 
VENEZUELA |
Subsidiaries [Member]
 
 
 
 
 
 
 
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Venezuela deconsolidation charge
 
 
 
 
 
 
 
 
70.9 
 
 
Assets
30.0 
 
 
 
 
 
 
 
30.0 
 
 
Accounts and notes receivable, net
35.0 
 
 
 
 
 
 
 
35.0 
 
 
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)
 
 
 
 
 
 
 
 
5.9 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
0 
 
 
 
 
 
 
 
0 
 
 
Net sales
 
 
 
 
 
 
 
 
2.5 
50.8 
131.2 
Operating income (loss)
 
 
 
 
 
 
 
 
2.8 
36.5 
63.0 
Net income attributable to controlling interests
 
 
 
 
 
 
 
 
5.8 
68.5 
32.0 
Operating asset impairment
 
 
 
 
 
 
 
 
 
68.4 
 
Impairment of real estate investment
 
 
$ 10.5 
 
 
 
 
 
 
 
$ 30.6 
Quarterly Financial Information (Unaudited) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Total revenue
$ 1,172.4 
$ 1,096.3 
$ 1,094.6 
$ 1,013.7 
$ 1,032.6 
$ 1,026.3 
$ 1,070.6 
$ 963.2 
$ 4,377.0 
$ 4,092.7 
$ 4,110.0 
Cost of goods sold
746.0 
702.5 
690.0 
641.1 
641.8 
630.4 
649.0 
606.4 
2,779.6 
2,527.6 
2,597.3 
Net income (loss)
(55.6)
56.3 
(18.9)
65.9 
(35.1)
(5.4)
52.3 
32.8 
47.7 
44.6 
95.8 
Net income (loss) attributable to controlling interests
(61.5)
54.9 
(20.8)
64.1 
(37.2)
(6.6)
50.7 
31.9 
36.7 
38.8 
91.6 
Basic net income per share (in dollars per share)
$ (0.26)
$ 0.23 
$ (0.09)
$ 0.27 
$ (0.16)
$ (0.03)
$ 0.21 
$ 0.13 
$ 0.15 
$ 0.16 
$ 0.39 
Diluted net income per share (in dollars per share)
$ (0.26)
$ 0.22 
$ (0.09)
$ 0.26 
$ (0.16)
$ (0.03)
$ 0.21 
$ 0.13 
$ 0.15 
$ 0.16 
$ 0.38 
Venezuela deconsolidation charge
 
 
 
 
 
 
 
 
(70.9)
0 
0 
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
107.8 
 
 
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) attributable to Controlling Interest
 
 
 
 
 
 
 
 
112.5 
 
 
Restructuring Costs
28.7 
 
 
 
36.6 
 
 
 
 
 
 
Subsidiaries [Member]
 
 
 
 
 
 
 
 
 
 
 
Impairment of real estate investment
 
 
 
 
 
 
 
 
 
10.5 
 
Subsidiaries [Member] |
VENEZUELA
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to controlling interests
 
 
 
 
 
 
 
 
5.8 
68.5 
32.0 
Venezuela deconsolidation charge
 
 
 
 
 
 
 
 
70.9 
 
 
Impairment of real estate investment
 
 
10.5 
 
 
 
 
 
 
 
30.6 
Operating asset impairment
 
 
 
 
 
 
 
 
 
$ 68.4 
 
Schedule II (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Allowance for Doubtful Accounts [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Year
$ 13.7 
$ 10.7 
$ 9.9 
Additions
3.5 
3.4 
4.9 
Deductions
(1.3)
(0.4)
(4.1)
Balance at End of Year
15.9 
13.7 
10.7 
Valuation Allowance for Deferred Tax Assets [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Year
135.4 
127.8 
101.9 
Additions
78.8 
9.6 
34.4 
Deductions
0 
(2.0)
(8.5)
Balance at End of Year
$ 214.2 
$ 135.4 
$ 127.8