AXALTA COATING SYSTEMS LTD., 10-Q filed on 10/27/2016
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2016
Oct. 20, 2016
Document And Entity Information [Abstract]
 
 
Entity Registrant Name
Axalta Coating Systems Ltd. 
 
Trading Symbol
AXTA 
 
Entity Central Index Key
0001616862 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
240,462,407 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Income Statement [Abstract]
 
 
 
 
Net sales
$ 1,023.4 
$ 1,000.3 
$ 3,044.1 
$ 3,083.6 
Other revenue
5.7 
4.8 
18.7 
20.1 
Total revenue
1,029.1 
1,005.1 
3,062.8 
3,103.7 
Cost of goods sold
630.4 
628.6 
1,885.8 
1,958.1 
Selling, general and administrative expenses
242.3 
219.2 
699.1 
677.7 
Research and development expenses
14.9 
13.0 
41.6 
38.7 
Amortization of acquired intangibles
21.3 
20.4 
61.8 
60.5 
Income from operations
120.2 
123.9 
374.5 
368.7 
Interest expense, net
42.9 
50.8 
140.8 
150.0 
Other expense, net
87.4 
18.9 
128.2 
111.4 
Income (loss) before income taxes
(10.1)
54.2 
105.5 
107.3 
Provision (benefit) for income taxes
(0.6)
17.8 
34.3 
48.5 
Net income (loss)
(9.5)
36.4 
71.2 
58.8 
Less: Net income attributable to noncontrolling interests
1.2 
1.3 
3.7 
3.7 
Net income (loss) attributable to controlling interests
$ (10.7)
$ 35.1 
$ 67.5 
$ 55.1 
Basic net income (loss) per share (dollars per share)
$ (0.04)
$ 0.15 
$ 0.28 
$ 0.24 
Diluted net income (loss) per share (dollars per share)
$ (0.04)
$ 0.15 
$ 0.28 
$ 0.23 
Basic weighted average shares outstanding
238.5 
235.9 
237.8 
232.7 
Diluted weighted average shares outstanding
238.5 
240.9 
242.4 
239.1 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 528.3 
$ 485.0 
Restricted cash
2.8 
2.7 
Accounts and notes receivable, net
871.3 
765.8 
Inventories
545.6 
530.7 
Prepaid expenses and other
58.9 
63.6 
Deferred income taxes
65.7 
69.5 
Total current assets
2,072.6 
1,917.3 
Property, plant and equipment, net
1,372.3 
1,382.9 
Goodwill
1,015.9 
928.2 
Identifiable intangibles, net
1,239.9 
1,191.6 
Other assets
441.8 
434.2 
Total assets
6,142.5 
5,854.2 
Current liabilities:
 
 
Accounts payable
469.2 
454.7 
Current portion of borrowings
54.2 
50.1 
Deferred income taxes
6.5 
6.6 
Other accrued liabilities
386.2 
370.2 
Total current liabilities
916.1 
881.6 
Long-term borrowings
3,428.1 
3,391.4 
Long-term employee benefits
243.3 
252.3 
Deferred income taxes
192.3 
165.5 
Other liabilities
31.9 
22.2 
Total liabilities
4,811.7 
4,713.0 
Commitments and contingencies
   
   
Shareholders’ equity
 
 
Common shares, $1.00 par, 1,000.0 shares authorized, 240.1 and 237.9 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively
238.9 
237.0 
Capital in excess of par
1,289.8 
1,238.8 
Accumulated deficit
(65.3)
(132.8)
Accumulated other comprehensive loss
(252.9)
(269.3)
Total Axalta shareholders’ equity
1,210.5 
1,073.7 
Noncontrolling interests
120.3 
67.5 
Total shareholders’ equity
1,330.8 
1,141.2 
Total liabilities and shareholders’ equity
$ 6,142.5 
$ 5,854.2 
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
Sep. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Common stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
Common shares, shares authorized
1,000,000,000.0 
1,000,000,000.0 
Common shares, shares issued
240,100,000 
237,900,000 
Common shares, shares outstanding
240,100,000 
237,900,000 
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ (9.5)
$ 36.4 
$ 71.2 
$ 58.8 
Other comprehensive income (loss), before tax:
 
 
 
 
Foreign currency translation adjustments
14.6 
(64.4)
16.7 
(146.7)
Unrealized gain (loss) on securities
0.6 
(0.4)
0.3 
0 
Unrealized gain (loss) on derivatives
1.7 
(3.5)
0 
(8.0)
Unrealized gain (loss) on pension
0.1 
(0.8)
0.2 
(4.8)
Other comprehensive income (loss), before tax
17.0 
(69.1)
17.2 
(159.5)
Income tax provision related to items of other comprehensive income
0 
1.2 
0 
4.6 
Other comprehensive income (loss), net of tax
17.0 
(67.9)
17.2 
(154.9)
Comprehensive income (loss)
7.5 
(31.5)
88.4 
(96.1)
Less: Comprehensive income (loss) attributable to noncontrolling interests
2.2 
(0.8)
4.5 
1.4 
Comprehensive income (loss) attributable to controlling interests
$ 5.3 
$ (30.7)
$ 83.9 
$ (97.5)
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Operating activities:
 
 
Net income
$ 71.2 
$ 58.8 
Adjustment to reconcile net income to cash provided by operating activities:
 
 
Depreciation and amortization
235.8 
225.5 
Amortization of financing costs and original issue discount
14.6 
15.5 
Debt extinguishment and refinancing related costs
84.2 
0 
Deferred income taxes
(14.0)
(1.1)
Realized and unrealized foreign exchange losses, net
30.6 
90.2 
Stock-based compensation
31.6 
22.1 
Asset impairment
10.5 
30.6 
Other non-cash, net
(10.4)
5.2 
Changes in operating assets and liabilities:
 
 
Trade accounts and notes receivable
(103.8)
(111.6)
Inventories
0.1 
(44.7)
Prepaid expenses and other
(31.2)
(57.3)
Accounts payable
14.0 
(10.1)
Other accrued liabilities
0.4 
(41.5)
Other liabilities
(9.8)
(17.8)
Cash provided by operating activities
323.8 
163.8 
Investing activities:
 
 
Business acquisitions (net of cash acquired)
(103.5)
(19.9)
Purchase of property, plant and equipment
(95.3)
(93.8)
Restricted cash
0 
1.7 
Purchase of Intangibles
(3.9)
(0.3)
Other investing activities
(2.4)
1.2 
Cash used for investing activities
(205.1)
(111.1)
Financing activities:
 
 
Proceeds from short-term borrowings
0 
3.0 
Proceeds from long-term borrowings
1,377.6 
0 
Payments on short-term borrowings
7.2 
15.6 
Payments on long-term borrowings
(1,375.5)
(20.5)
Payments of Redemption Premiums and Financing Costs
78.3 
0 
Dividends paid to noncontrolling interests
(3.0)
(4.4)
Proceeds from option exercises and associated tax benefits
21.3 
67.8 
Other financing activities
(0.2)
(0.2)
Cash provided by (used for) financing activities
(65.3)
30.1 
Increase in cash and cash equivalents
53.4 
82.8 
Effect of exchange rate changes on cash
(10.1)
(53.3)
Cash and cash equivalents at beginning of period
485.0 
382.1 
Cash and cash equivalents at end of period
528.3 
411.6 
Accrued capital expenditures
$ 21.6 
$ 17.2 
Basis of Presentation of the Condensed Consolidated Financial Statements
Basis of Presentation of the Condensed Consolidated Financial Statements
BASIS OF PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at September 30, 2016 and December 31, 2015, the results of operations and comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015, and their cash flows for the nine months then ended. All intercompany balances and transactions have been eliminated. These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated and combined financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material.
The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for a full year.
The Acquisition
The acquisition ("Acquisition") by Axalta and certain of its indirect subsidiaries of all the capital stock, other equity interests and assets of certain entities which, together with their subsidiaries, comprised the DuPont Performance Coatings business ("DPC"), formerly owned by E. I. du Pont de Nemours and Company ("DuPont"), closed on February 1, 2013.
The Carlyle Offerings
In November 2014, we priced our initial public offering ("IPO") in which certain selling shareholders affiliated with The Carlyle Group L.P. ("Carlyle") sold 57,500,000 common shares at a price of $19.50 per share.
Subsequent to the IPO, Carlyle completed six secondary offerings for an aggregate of 170.3 million common shares from April 2015 through August 2016 with offering prices ranging from $27.93 to $29.75 ("Carlyle Offerings"). We did not receive any proceeds from the sale of common shares in any of the Carlyle Offerings.
Effective with the August 2016 Carlyle offering, Carlyle no longer has any beneficial interest in Axalta's common shares, other than de minimis amounts held or owned in the ordinary course of business purchased subsequent to the Acquisition.
Recent Accounting Guidance
Recent Accounting Guidance
RECENT ACCOUNTING GUIDANCE
Accounting Guidance Issued But Not Yet Adopted
In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation. This standard is effective for fiscal years beginning after December 15, 2016, 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.
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.
In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", which requires that all deferred tax assets and liabilities be classified as non-current on the balance sheet. The standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We intend to early adopt this standard on December 31, 2016. The impacts to the accompanying condensed consolidated balance sheets would have resulted in corresponding net reclassifications from current assets and liabilities to non-current assets and liabilities at September 30, 2016 and December 31, 2015 of $59.2 million and $62.9 million, respectively.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the guidance that an entity should use related to revenue recognition. This standard was effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies will be allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to this date. In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," which provides clarification around identifying performance obligations and the treatment of different licensing contracts. Additional standards related to revenue from contracts with customers have been issued during 2016 to provide narrow scope improvements and clarification. We 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.
We have determined that all other recently issued accounting standards will not have a material impact on our condensed consolidated financial statements or do not apply to our operations.
Goodwill and Identifiable Intangible Assets
Goodwill and Identifiable Intangible Assets
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
During the three and nine months ended September 30, 2016, we completed three business acquisitions. These include a refinish business based in Southeast Asia, a light-vehicle business specializing in interior coatings based in North America and fifty-one percent of a controlling interest in an industrial business specializing in coil and spray coatings (together, the "2016 Acquisitions" or combined with immaterial acquisitions completed during 2015, the "2016 and 2015 Acquisitions"). Under the terms of the fifty-one percent acquisition, we are committed to purchase the remaining non-controlling interest of the entity in two equal installments in 2018 and 2019. The fair value of the non-controlling interest was $51.3 million as of the acquisition date. The 2016 Acquisitions were accounted for as business combinations and the overall impacts to our condensed consolidated financial statements were not considered material, either individually or in the aggregate, as of and for the three and nine months ended September 30, 2016. The total fair value of net assets acquired, including minority interests, was $156.6 million and aggregate net sales for the 2016 Acquisitions on our condensed consolidated statements of operations for both the three and nine months ended September 30, 2016 was $21.4 million. In addition to the goodwill associated with our minority interests from the 2016 Acquisitions, the fair value associated with definite-lived intangibles assets was $96.8 million, comprised of $17.7 million in technology, $9.3 million of trademarks, $69.3 million of customer relationships and $0.5 million of non-compete agreements. At September 30, 2016, we have not finalized the purchase accounting related to the 2016 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
The following table shows changes in the carrying amount of goodwill from December 31, 2015 to September 30, 2016 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
December 31, 2015
$
866.1

$
62.1

$
928.2

Goodwill from acquisitions
59.2

15.5

74.7

Foreign currency translation
12.1

0.9

13.0

September 30, 2016
$
937.4

$
78.5

$
1,015.9


Identifiable Intangible Assets
The following table summarizes the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
September 30, 2016
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
435.2

$
(149.6
)
$
285.6

10.2
Trademarks - indefinite-lived
287.3

—

287.3

Indefinite
Trademarks - definite-lived
55.5

(11.0
)
44.5

14.8
Customer relationships
752.2

(130.5
)
621.7

18.9
Non-compete agreements
2.4

(1.6
)
0.8

4.6
Total
$
1,532.6

$
(292.7
)
$
1,239.9

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

$
(117.2
)
$
295.8

10.0
Trademarks—indefinite-lived
284.4

—

284.4

 Indefinite
Trademarks—definite-lived
45.2

(8.5
)
36.7

14.7
Customer relationships
676.1

(102.1
)
574.0

19.3
Non-compete agreements
1.9

(1.2
)
0.7

4.6
Total
$
1,420.6

$
(229.0
)
$
1,191.6

 

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2016 and each of the succeeding five years is:
Remainder of 2016
$
21.6

2017
$
86.1

2018
$
86.1

2019
$
86.0

2020
$
86.0

2021
$
85.9

Restructuring
Restructuring
RESTRUCTURING
In accordance with the applicable guidance for Nonretirement Postemployment Benefits, we accounted for termination benefits and recognized liabilities when it was considered probable that employees were entitled to termination benefits and the amounts could be reasonably estimated.
We have incurred costs in connection with involuntary termination benefits associated with our corporate-related initiatives, including our transition to a standalone entity and cost-saving opportunities associated with our Fit For Growth and Axalta Way initiatives. During the three and nine months ended September 30, 2016, we incurred restructuring costs of $15.6 million and $21.2 million, respectively. During the three and nine months ended September 30, 2015, we recognized a benefit resulting from a change in estimate of $0.7 million and costs of $16.0 million, respectively. These amounts are recorded within selling, general and administrative expenses in the condensed consolidated statements of operations. The payments associated with these actions are expected to be substantially completed within 12 to 15 months from September 30, 2016.
The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2015 to September 30, 2016:
 
2016 Activity
Balance at December 31, 2015
$
41.3

Expense Recorded
21.2

Payments Made
(19.8
)
Foreign Currency Impacts
0.6

Balance at September 30, 2016
$
43.3

Commitments and Contingencies
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
Guarantees
We directly guarantee various debt obligations with third parties related to the following: equity affiliates, customers, suppliers and other affiliated companies. No amounts were accrued at September 30, 2016 and December 31, 2015.
Leases
At September 30, 2016, we have recorded approximately $25.1 million in property, plant and equipment representing our landlord's estimated costs incurred to construct properties under two separate build-to-suit lease arrangements. Both leases commenced construction during 2015 with construction expected to be completed during 2016 and 2017 for the two properties, respectively. The construction related to the build-to-suit leases have estimated total costs of approximately $55.0 million.
For accounting purposes, we are deemed the owner of the assets during the construction period and are required to record these costs as construction in progress during the construction period, with an offsetting liability in the same amount recorded to current and long-term borrowings, depending on the expected construction completion dates. These costs do not reflect the Company’s cash obligations, but represent the landlord’s costs to construct the properties, including costs for tenant improvements.
Other
We are subject to various pending lawsuits and other claims including civil, regulatory, and environmental matters. Certain of these lawsuits and other claims may have an impact on us. These litigation matters may involve indemnification obligations by third parties and/or insurance coverage covering all or part of any potential damage awards against DuPont and/or us. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time.
The potential effects, if any, on the unaudited condensed consolidated financial statements of Axalta will be recorded in the period in which these matters are probable and estimable, and such effects could be material.
In addition to the aforementioned matters, we are party to various legal proceedings in the ordinary course of business. Although the ultimate resolution of these various proceedings cannot be determined at this time, management does not believe that such proceedings, individually or in the aggregate, will have a material adverse effect on the unaudited condensed consolidated financial statements of Axalta.
Long-term Employee Benefits
Long-term Employee Benefits
LONG-TERM EMPLOYEE BENEFITS
Components of Net Periodic Benefit Cost
The following table sets forth the components of net periodic benefit cost for the three and nine months ended September 30, 2016 and 2015:
 
 
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
Components of net periodic benefit cost:
 
 
 
 
Net periodic benefit cost:
 
 
 
 
Service cost
$
2.4

$
2.7

$
7.5

$
9.1

Interest cost
3.7

3.9

11.5

13.1

Expected return on plan assets
(3.0
)
(3.7
)
(9.6
)
(11.0
)
Amortization of actuarial loss, net
0.1

0.2

0.2

0.7

Amortization of prior service credit, net
—

—

—

(0.1
)
Net periodic benefit cost
$
3.2

$
3.1

$
9.6

$
11.8

Net periodic benefit gains associated with other long-term employee benefits consisted of amortization of prior service credits of $0.9 million and $2.8 million for the three and nine months ended September 30, 2015, respectively. At September 30, 2016, there were no liabilities associated with other long-term employee benefits as the plan was effectively settled at December 31, 2015.
Stock-based Compensation
Stock-based Compensation
STOCK-BASED COMPENSATION
During the three and nine months ended September 30, 2016, we recognized $10.0 million and $31.6 million, respectively, in stock-based compensation expense which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized a tax benefit of $5.3 million and $10.8 million for the three and nine months ended September 30, 2016, respectively.
During the three and nine months ended September 30, 2015, we recognized $7.9 million and $22.1 million, respectively, in stock-based compensation expense which was allocated primarily to cost of goods sold, selling, general and administrative expenses and research and development expenses on the condensed consolidated statements of operations. We recognized a tax benefit of $2.8 million and $6.6 million for the three and nine months ended September 30, 2015, respectively.
Included in the $22.1 million of stock-based compensation expense recorded during the nine months ended September 30, 2015 was $8.2 million of stock-based compensation expense attributable to the 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 a change in control (the "Change in Control") in April 2015 when Carlyle's interest in Axalta decreased below 50%, which triggered a liquidity event as defined in the 2013 Plan.
Compensation cost is recorded net of forfeitures. The forfeiture rate assumption is the estimated annual rate at which unvested awards are expected to be forfeited during the vesting period. Periodically, management will assess whether it is necessary to adjust the estimated rate to reflect changes in actual forfeitures or changes in expectations. At September 30, 2016, the Company has estimated its annual forfeiture rate at 0% due to its historical trends and expectations of forfeitures.
Stock Options
The Black-Scholes option pricing model is used to estimate fair value of the options as of the date of the grant. The weighted average fair value of options granted in 2016 was $5.68 per share. Principal weighted average assumptions used in applying the Black-Scholes model were as follows:
 
2016 Grants
Expected Term
6.00 years

Volatility
21.63
%
Dividend Yield
—

Discount Rate
1.45
%

Options granted under the 2014 Incentive Award Plan (the "2014 Plan) vest ratably over 3 years and have a life of no more than 10 years. For the option grants, the market value of the stock is the closing price of the stock on the date of grant. The expected term assumptions used for the 2016 and 2015 grants were also determined using the simplified method and resulted in an expected term of 6 years. We do not anticipate paying cash dividends in the foreseeable future and, therefore, used an expected dividend yield of zero. Volatility for outstanding options is based upon an industry peer group since the Company was either privately-held at the date of grant or had a limited history as a public company. The discount rate was derived from the U.S. Treasury yield curve. The exercise price and market value per share amounts were as of the date the stock options were granted.
A summary of stock option award activity as of and for the nine months ended September 30, 2016, is presented below:
 
Awards/Units (millions)
Weighted-
Average
Exercise
Price
Aggregate
Intrinsic
Value
 (millions)
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at January 1, 2016
11.0

$
12.19

 
 
Granted
1.1

$
23.27

 
 
Exercised
(1.7
)
$
8.09

 
 
Forfeited / cancelled
(0.4
)
$
9.48

 
 
Outstanding at September 30, 2016
10.0

$
14.16

 
 
Vested and expected to vest at September 30, 2016
10.0

$
14.16

$
146.0

7.42
Exercisable at September 30, 2016
8.1

$
11.17

$
140.5

7.04

Cash received by the Company upon exercise of options for the nine months ended September 30, 2016 was $21.3 million, inclusive of tax benefits of $7.5 million. The future tax benefit related to exercises during the nine months ended September 30, 2016 was $10.2 million. The Company may settle option exercises by issuing new shares, treasury shares or shares purchased on the open market. The intrinsic value of options exercised for the nine months ended September 30, 2016 was $34.2 million.
At September 30, 2016, there was $6.5 million of unrecognized compensation cost relating to outstanding unvested stock options expected to be recognized over the weighted average period of 2.0 years. Compensation expense is recognized for the fair values of the stock options over the requisite service period of the awards using the graded-vesting attribution method.
Restricted Stock Awards and Restricted Stock Units
During the nine months ended September 30, 2016, we issued 0.8 million shares of restricted stock awards and restricted stock units with an average grant price of $23.39 per share. A portion of these awards vest ratably over three years. Other awards granted to certain members of management cliff vest over two and three year periods and are subject to accelerated vesting in the event of the award recipient's termination of employment under certain circumstances.
A summary of restricted stock and restricted stock unit award activity as of September 30, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
1.7

$
32.22

Granted
0.8

$
23.39

Vested
(0.2
)
$
31.71

Forfeited
—

$
—

Outstanding at September 30, 2016
2.3

$
29.22


Tax benefits on the vesting of restricted stock were $1.9 million.
At September 30, 2016, there was $31.2 million of unamortized expense relating to unvested restricted stock and restricted stock units 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.
Performance Stock Awards and Performance Share Units
During the nine months ended September 30, 2016, the Company granted performance stock awards and performance share units (collectively referred to as "PSUs") to certain employees of the Company as part of their annual equity compensation award.
PSUs are tied to the Company’s total shareholder return ("TSR") relative to the TSR of a selected industry peer group. Each award covers a three-year performance cycle starting January 1, 2016 through December 31, 2018 with a three-year service period vesting requirement. Awards will cliff vest upon meeting the applicable TSR thresholds and the three-year service requirement. The actual number of shares awarded is adjusted to between zero and 200% of the target award amount based upon achievement of pre-determined objectives. TSR relative to peers is considered a market condition under applicable authoritative guidance. 
A summary of performance stock and performance stock unit award activity as of September 30, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
—

$
—

Granted
0.3

$
24.74

Vested
—

$
—

Forfeited
—

$
—

Outstanding at September 30, 2016
0.3

$
24.74


At September 30, 2016, there was $6.7 million of unamortized expense relating to unvested PSUs that is expected to be amortized over a weighted average period of 2.3 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 (Income) Expense, Net
OTHER EXPENSE, NET
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
Foreign exchange losses, net
$
4.5

$
23.7

$
30.0

$
90.2

Impairment of real estate investment
—

—

10.5

30.6

Debt extinguishment and refinancing related costs
81.9

—

84.2

—

Other miscellaneous expense (income), net
1.0

(4.8
)
3.5

(9.4
)
Total
$
87.4

$
18.9

$
128.2

$
111.4


Our net exchange losses for the three and nine months ended September 30, 2016 and 2015 consists of the impacts on our Euro borrowings combined with those impacts related to our Venezuela subsidiary, which is a U.S. dollar functional entity, and the remeasurement of the non-U.S. dollar denominated monetary assets and liabilities. Amounts were also directly impacted by impairment charges on our non-operational real estate investment (discussed further at Note 20). These exchange losses were slightly offset by gains resulting from the remeasurement of intercompany transactions denominated in currencies different from the functional currency of the relevant subsidiary.
Expense related to debt extinguishment and refinancing related costs includes redemption premiums on our 2021 Dollar Senior Notes and 2021 Euro Senior Notes during the three and nine months ended September 30, 2016, as well as the unamortized (or pro-rata unamortized) deferred financing costs and original issue discounts associated with the debt extinguishments. See Note 14 for further information.
Other miscellaneous expense (income), net included a gain for the nine months ended September 30, 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.
Income Taxes
Income Taxes
INCOME TAXES
Our effective income tax rates for the nine months ended September 30, 2016 and 2015 are as follows:
 
Nine Months Ended September 30,
 
2016
2015
Effective Tax Rate
32.5
%
45.2
%

The lower effective tax rate for the nine months ended September 30, 2016 was primarily due to less pre-tax impairment charges in Venezuela which were not tax-deductible. This resulted in a 10.0% increase in the effective tax rate in 2015 compared to 2.9% in 2016. This decrease was partially offset by the unfavorable impact of pre-tax losses on debt extinguishment and other financing-related costs incurred in connection with the refinancing activities and voluntary prepayments (see discussion at Note 14), as we do not expect to realize a tax benefit for a portion of these losses.
The effective tax rate for the nine months ended September 30, 2016 differs from the U.S. Federal statutory rate due to various items that impacted the effective rate both favorably and unfavorably. We recorded favorable adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate and currency exchange losses, which were partially offset by the unfavorable impact of pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized, non-deductible expenses and interest and a pre-tax impairment charge in Venezuela that was non-deductible.
Net Income (Loss) Per Common Share
Net Income (Loss) Per Common Share
NET INCOME (LOSS) PER COMMON SHARE
Basic net income (loss) per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the exercise of outstanding stock options, restricted shares and performance shares. Potentially dilutive securities have been excluded in the weighted average number of common shares used for the calculation of net income per share in periods of net loss because the effect of such securities would be anti-dilutive. A reconciliation of our basic and diluted net income per common share is as follows:
 
Three Months Ended September 30,
Nine Months Ended September 30,
(In millions, except per share data)
2016
2015
2016
2015
Net income (loss) to common shareholders
$
(10.7
)
$
35.1

$
67.5

$
55.1

Basic weighted average shares outstanding
238.5

235.9

237.8

232.7

Diluted weighted average shares outstanding
238.5

240.9

242.4

239.1

Net income (loss) per Common Share:
 
 


Basic net income (loss) per share
$
(0.04
)
$
0.15

$
0.28

$
0.24

Diluted net income (loss) per share
$
(0.04
)
$
0.15

$
0.28

$
0.23

The number of anti-dilutive shares that have been excluded in the computation of diluted net income (loss) per share for the three and nine months ended September 30, 2016 were 13.0 million and 1.4 million, respectively. The number of anti-dilutive shares that have been excluded in the computation of diluted net income (loss) per share for the three and nine months ended September 30, 2015 were 1.1 million and 0.6 million, respectively.
Accounts and Notes Receivable, Net
Accounts and Notes Receivable, Net
ACCOUNTS AND NOTES RECEIVABLE, NET
 
September 30, 2016
December 31, 2015
Accounts receivable—trade, net
$
714.7

$
647.2

Notes receivable
65.6

43.0

Other
91.0

75.6

Total
$
871.3

$
765.8


Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable—trade, net are net of allowances of $12.1 million and $10.7 million at September 30, 2016 and December 31, 2015, respectively. Bad debt expense, within selling, general, and administration expenses, for the three and nine months ended September 30, 2016, was $0.6 million and $1.7 million, respectively, and income of $0.2 million and expense of $3.3 million for the three and nine months ended September 30, 2015, respectively.
Inventories
Inventories
INVENTORIES
 
September 30, 2016
December 31, 2015
Finished products
$
320.4

$
313.1

Semi-finished products
85.1

88.5

Raw materials and supplies
140.1

129.1

Total
$
545.6

$
530.7


Stores and supplies inventories of $21.0 million and $20.8 million at September 30, 2016 and December 31, 2015, respectively, were valued under the weighted average cost method.
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net
PROPERTY, PLANT AND EQUIPMENT, NET
Depreciation expense amounted to $45.0 million and $130.6 million for the three and nine months ended September 30, 2016, respectively, and $42.2 million and $127.9 million for the three and nine months ended September 30, 2015, respectively.
 
September 30, 2016
December 31, 2015
Property, plant and equipment
$
1,974.8

$
1,855.3

Accumulated depreciation
(602.5
)
(472.4
)
Property, plant, and equipment, net
$
1,372.3

$
1,382.9

Borrowings
Borrowings
BORROWINGS
Borrowings are summarized as follows:
 
September 30, 2016
December 31, 2015
New Dollar Term Loan
$
1,925.3

$
2,042.5

New Euro Term Loan
209.7

428.0

2021 Dollar Senior Notes
—

750.0

2021 Euro Senior Notes
—

274.4

2024 Dollar Senior Notes
500.0

—

2024 Euro Senior Notes
375.7

—

2025 Euro Senior Notes
504.7

—

Short-term and other borrowings
37.0

26.5

Unamortized original issue discount
(12.7
)
(14.0
)
Unamortized deferred financing costs
(57.4
)
(65.9
)
 
$
3,482.3

$
3,441.5

Less:
 
 
Short term borrowings
$
26.7

$
22.7

Current portion of long-term borrowings
27.5

27.4

Long-term debt
$
3,428.1

$
3,391.4


Senior Secured Credit Facilities, as amended
On February 3, 2014 (the "Second Amendment Effective Date"), Axalta Coating Systems Dutch B B.V. ("Dutch B B.V."), as "Dutch Borrower", and its indirect wholly-owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. ("Axalta US Holdings"), as "US Borrower", executed the second amendment to the Senior Secured Credit Facilities (the "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 "New Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans (€397.0 million) into a new class of term loans (the "New Euro Term Loans" and, together with the New Dollar Term Loans and the Revolving Credit Facility (as defined herein), the "Senior Secured Credit Facilities"). The New Dollar Term Loans are subject to a floor of 1.00%, plus an applicable rate after the Second Amendment Effective Date. The applicable rate for such New Dollar Term Loans is 3.00% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 2.00% per annum for Base Rate Loans as defined in the Credit Agreement. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans is subject to a further 25 basis point reduction if the Total Net Leverage Ratio as defined in the Credit Agreement governing the Senior Secured Credit Facilities is less than or equal to 4.50:1.00. The New Euro Term Loans are also subject to a floor of 1.00%, plus an applicable rate after the Amendment Effective Date. The applicable rate for such New Euro Term Loans is 3.25% per annum for Eurocurrency Rate Loans. New Euro Term Loans may not be Base Rate Loans. The applicable rate is subject to a further 25 basis point reduction if the Total Net Leverage Ratio is less than or equal to 4.50:1.00. During the third quarter of 2014, our Total Net Leverage Ratio was and has continued to be less than 4.50:1.00. Consequently, the applicable rates were changed to 2.75% for the New Dollar Term Loans and 3.00% for the New Euro Term Loans through September 30, 2016. 
Interest is payable quarterly on both the New Dollar Term Loan and the New Euro Term Loan. Prior to the Second Amendment, interest on the Dollar Term Loan was subject to a floor of 1.25% for Eurocurrency Rate Loans plus an applicable rate of 3.50%. For Base Rate Loans, the interest was subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate, an Adjusted Eurocurrency Rate, or 2.25% plus an applicable rate of 2.50%. Interest on the Euro Term Loan, a Eurocurrency Loan, was subject to a floor of 1.25% plus an applicable rate of 4.00%.
Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the make-whole provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $25.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow.
The Senior Secured Credit Facilities are secured by substantially all assets of Axalta Coating Systems Dutch A B. V. ("Dutch A B.V.") and the guarantors. The New Dollar Term Loan and New Euro Term Loan mature on February 1, 2020. Principal is paid quarterly on both the New Dollar Term Loan and the New Euro Term Loan based on 1% per annum of the original principal amount with the unpaid balance due at maturity.
We are subject to customary negative covenants in addition to the First Lien Leverage Ratio financial covenant. Further, the Senior Secured Credit Facility, among other things, includes 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 September 30, 2016, the Company is in compliance with all covenants under the Senior Secured Credit Facility.
Revolving Credit Facility
On August 1, 2016 (the "Third Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the third amendment to the Senior Secured Credit Facilities (the "Third Amendment"). The Third Amendment impacted the Revolving Credit Facility by (i) extending the maturity of the Revolving Credit Facility to five years from the 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 at the end of the quarter is required to be greater than 5.50:1.00. At September 30, 2016, the financial covenant is not applicable as there were no borrowings.
Under the Third Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of 0.00% for Adjusted Eurocurrency Rate Loans (as defined in the Credit Agreement) plus an applicable rate of 2.75% (previously 3.50%) subject to an additional step-down to 2.50% or 2.25%, if the First Lien Net Leverage Ratio (as defined in the Credit Agreement) 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.
In connection with the Third Amendment to the Credit Agreement discussed above, we recorded a pre-tax loss on extinguishment for the three and nine months ended September 30, 2016 of $2.3 million.
There have been no borrowings outstanding on the Revolving Credit Facility since the issuance of the Senior Secured Credit Facilities. At September 30, 2016 and December 31, 2015, letters of credit issued under the Revolving Credit Facility totaled $21.5 million and $24.9 million, respectively, which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $378.5 million and $375.1 million at September 30, 2016 and December 31, 2015, respectively.
Significant Transactions
In April and September of 2016, we voluntarily prepaid $100.0 million and €200.0 million in principal of the outstanding New Dollar Term Loan and New Euro Term Loan, respectively. As a result, we recorded pre-tax losses on extinguishment for the three and nine months ended September 30, 2016 of $4.3 million and $6.6 million, respectively, consisting of the write-off of unamortized deferred financing costs and original issue discounts.
Significant Terms of the 2021 Senior Notes
On February 1, 2013, Axalta Coating Systems Dutch Holding B B.V, as the “Dutch Issuer”, an indirect, wholly owned subsidiary of the Company, and Axalta Coating Systems LLC, 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 Senior Notes are unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries.
The indentures governing the Senior Notes contain covenants that restrict the ability of the Issuers and their subsidiaries to, among other things, incur additional debt, make certain payments including payment of dividends or repurchase equity interest of the Issuers, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities, and enter into transactions with affiliates.
Issuance of New Senior Notes and Redemption of 2021 Senior Notes
On August 16, 2016, the U.S. Issuer, issued $500.0 million in aggregate principal amount of 4.875% Senior Unsecured Notes (the “2024 Dollar Senior Notes”) and €335.0 million in aggregate principal amount of 4.250% Senior Unsecured Notes (the “2024 Euro Senior Notes”), each due August 2024 (collectively the “2024 Senior Notes” and with the 2025 Euro Senior Notes, the “New Senior Notes”, each of which is described in detail below), for the primary purpose of redeeming the 2021 Dollar Senior Notes (the “August Refinancing”). Consistent with the terms of the 2021 Dollar Senior Notes, we extinguished the principal at a redemption price equal to 105.531%.
In connection with the August Refinancing, we recorded a $56.9 million pre-tax loss on extinguishment and other financing-related costs for the three and nine months ended September 30, 2016. The pre-tax 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.
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 prepayment of the New Euro Term Loan (the “September Refinancing”). Consistent with the original terms of the 2021 Euro Senior Notes, we extinguished the principal at a redemption price equal to 104.313%.
In connection with the September Refinancing, we recorded an $18.4 million pre-tax loss on extinguishment and other financing-related costs for the three and nine months ended September 30, 2016. The pre-tax 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 New Senior Notes are fully and unconditionally guaranteed by Axalta Coating Systems Dutch Holdings B B.V., an indirect, wholly owned subsidiary of the Company (“Parent Guarantor”).
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 101.0% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The 2024 Dollar Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of Notes
The indebtedness issued through the 2024 Dollar Senior Notes is senior unsecured indebtedness of the U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the U.S. Issuer and guarantors. The 2024 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
(ii) 2024 Euro Senior Notes
The 2024 Euro Senior Notes were issued at par and are due August 15, 2024. The 2024 Euro Senior Notes bear interest at 4.250% and are payable semi-annually on February 15 and August 15. We have the option to redeem all or part of the 2024 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after August 15 of the years indicated:
Period
2024 Euro 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 New 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 101.0% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The 2024 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of Notes.
The indebtedness issued through the 2024 Euro Senior Notes is senior unsecured indebtedness of the U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
(iii) 2025 Euro Senior Notes
The 2025 Euro Senior Notes were issued at par and are due January 15, 2025. The 2025 Euro Senior Notes bear interest at 3.750% and are payable semi-annually on January 15 and July 15. We have the option to redeem all or part of the 2025 Euro Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after January 15 of the years indicated:
Period
2025 Euro 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 September 30, 2016.
Remainder of 2016
$
14.5

2017
29.7

2018
28.4

2019
27.9

2020
2,046.0

Thereafter
1,380.8

 
$
3,527.3

Fair Value Accounting
Fair Value Accounting
FAIR VALUE ACCOUNTING
Fair value of financial instruments
Available for sale securities - The fair value of available for sale securities was $4.6 million and $4.2 million at September 30, 2016 and December 31, 2015, 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 2021 Dollar Senior Notes and 2021 Euro Senior Notes were redeemed during the three and nine months ended September 30, 2016 and therefore are no longer outstanding. See Note 14 for more information. The fair values of the 2024 Dollar Senior Notes, 2024 Euro Senior Notes, and 2025 Euro Senior Notes at September 30, 2016 were $508.8 million, $385.2 million and $497.2 million, respectively. The fair values of the 2021 Dollar Senior Notes and 2021 Euro Senior Notes at December 31, 2015 were $787.5 million and $285.4 million, respectively. The estimated fair values of these notes are based on recent trades and current trending. Due to the infrequency of trades of these notes, these inputs are considered to be Level 2 inputs.
The fair values of the New Dollar Term Loan and the New Euro Term Loan at September 30, 2016 were $1,939.7 million and $212.3 million, respectively. The fair values at December 31, 2015 were $2,024.6 million and $427.5 million, respectively. The estimated fair values of the New Dollar Term Loan and the New Euro Term Loan are based on recent trades, as reported by a third party pricing service. Due to the infrequency of trades of the New Dollar Term Loan and the New Euro Term Loan, these inputs are considered to be Level 2 inputs.
Derivative Financial Instruments
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs.
During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps are in place until September 29, 2017. The interest rate swaps qualify and are designated as cash flow hedges.
The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in our condensed consolidated balance sheet:
 
September 30, 2016
December 31, 2015
Prepaid and other assets:
 
 
Interest rate swaps
$
—

$
0.4

Total assets
$
—

$
0.4

Other accrued liabilities:
 
 
Interest rate swaps
$
2.8

$
—

Other liabilities:
 
 
Interest rate swaps
$
—

$
1.8

Total liabilities
$
2.8

$
1.8


We periodically enter into foreign currency forward contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other expense, net in the condensed consolidated statement of operations.
The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheet:
 
September 30, 2016
December 31, 2015
Prepaid and other assets:
 
 
Foreign currency contracts
$
0.3

$
0.3

Total assets
$
0.3

$
0.3

Other accrued liabilities:
 
 
Foreign currency contracts
$
0.3

$
—

Total liabilities:
$
0.3

$
—


For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.
The following tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2016 and 2015 for these cash flow hedges.
 
Amount of (Gain) Loss
Recognized in OCI on
Derivatives (Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of (Gain) Loss
Reclassified from
Accumulated OCI to Income (Effective
Portion)
Location of (Gain) Loss Recognized 
in Income on 
Derivatives (Ineffective Portion)
Amount of (Gain) Loss
Recognized in Income on
Derivatives (Ineffective
Portion)
Derivatives in Cash Flow Hedging
Relationships
Three Months Ended September 30, 2016
Three Months Ended September 30, 2015
Three Months Ended September 30, 2016
Three Months Ended September 30, 2015
Three Months Ended September 30, 2016
Three Months Ended September 30, 2015
Interest rate contracts
$
(1.7
)
$
3.5

Interest expense, net
$
1.7

$
1.7

Interest expense, net
$
(2.0
)
$
1.0

 
Amount of (Gain) Loss
Recognized in OCI on
Derivatives (Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of (Gain) Loss
Reclassified from
Accumulated OCI to Income (Effective
Portion)
Location of (Gain) Loss Recognized 
in Income on 
Derivatives (Ineffective Portion)
Amount of (Gain) Loss
Recognized in Income on
Derivatives (Ineffective
Portion)
Derivatives in Cash Flow Hedging
Relationships
Nine Months Ended September 30, 2016
Nine Months Ended September 30, 2015
Nine Months Ended September 30, 2016
Nine Months Ended September 30, 2015
Nine Months Ended September 30, 2016
Nine Months Ended September 30, 2015
Interest rate contracts
$
—

$
8.0

Interest expense, net
$
4.9

$
4.9

Interest expense, net
$
1.3

$
2.4


Also during the year ended December 31, 2013, we purchased a €300.0 million 1.5% interest rate cap on our Euro Term Loan that is in place until September 29, 2017. We paid a premium of $3.1 million for the interest rate cap. The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.
Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows:
 
 
Three Months Ended September 30,
Nine Months Ended September 30,
Derivatives Not Designated as Hedging
Instruments under ASC 815
Location of (Gain) Loss Recognized in
Income on Derivatives
2016
2015
2016
2015
Foreign currency forward contracts
Other expense, net
$
0.4

$
(4.4
)
$
4.4

$
(6.3
)
Interest rate cap
Interest expense, net
—

0.1

—

—

 
 
$
0.4

$
(4.3
)
$
4.4

$
(6.3
)
Segments
Segments
SEGMENTS
The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information.
We have two operating segments, which are also our reportable segments: Performance Coatings and Transportation Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets within this segment are refinish and industrial.
Through our Transportation Coatings segment, we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets within this segment are light vehicle and commercial vehicle.
Our business serves four end-markets globally as follows: 
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
Performance Coatings
 
 
 
 
Refinish
$
434.5

$
426.9

$
1,262.0

$
1,280.2

Industrial
184.8

173.7

532.4

516.4

Total Net sales Performance Coatings
619.3

600.6

1,794.4

1,796.6

Transportation Coatings
 
 
 
 
Light Vehicle
321.1

303.7

994.9

984.1

Commercial Vehicle
83.0

96.0

254.8

302.9

Total Net sales Transportation Coatings
404.1

399.7

1,249.7

1,287.0

Total Net sales
$
1,023.4

$
1,000.3

$
3,044.1

$
3,083.6


Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment.
 
Three Months Ended September 30,
 
2016
2015
 
Performance
Coatings
Transportation
Coatings
Total
Performance
Coatings
Transportation
Coatings
Total
Net sales (1)
$
619.3

$
404.1

$
1,023.4

$
600.6

$
399.7

$
1,000.3

Equity in earnings (losses) in unconsolidated affiliates
(0.4
)
0.1

(0.3
)
0.1

—

0.1

Adjusted EBITDA (2)
148.5

84.7

233.2

139.0

77.9

216.9

Investment in unconsolidated affiliates
3.3

11.5

14.8

5.5

6.8

12.3

 
Nine Months Ended September 30,
 
2016
2015
 
Performance
Coatings
Transportation
Coatings
Total
Performance
Coatings
Transportation
Coatings
Total
Net sales (1)
$
1,794.4

$
1,249.7

$
3,044.1

$
1,796.6

$
1,287.0

$
3,083.6

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

—

0.4

0.5

0.9

Adjusted EBITDA (2)
415.9

264.7

680.6

408.2

246.2

654.4

Investment in unconsolidated affiliates
3.3

11.5

14.8

5.5

6.8

12.3

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows:
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
Income (loss) before income taxes
$
(10.1
)
$
54.2

$
105.5

$
107.3

Interest expense, net
42.9

50.8

140.8

150.0

Depreciation and amortization
81.2

75.4

235.8

225.5

EBITDA
114.0

180.4

482.1

482.8

Debt extinguishment and refinancing related costs (a)
81.9

—

84.2

—

Foreign exchange remeasurement losses (b)
4.5

23.7

30.0

90.2

Long-term employee benefit plan adjustments (c)
0.8

(0.5
)
2.1

(0.1
)
Termination benefits and other employee related costs (d)
16.3

0.8

25.2

19.3

Consulting and advisory fees (e)
2.7

7.2

8.3

17.1

Offering and transactional costs (f)
3.0

1.4

4.4

(2.3
)
Stock-based compensation (g)
10.0

7.9

31.6

22.1

Other adjustments (h)
1.5

(3.7
)
5.2

(0.9
)
Dividends in respect of noncontrolling interest (i)
(1.5
)
(0.3
)
(3.0
)
(4.4
)
Asset impairment (j)
—

—

10.5

30.6

Adjusted EBITDA
$
233.2

$
216.9

$
680.6

$
654.4

(a)
During the three and nine months ended September 30, 2016, we prepaid outstanding principal on our term loans, resulting in non-cash pre-tax losses on extinguishment of $4.3 million and $6.6 million, respectively. During the three and nine months ended September 30, 2016, we amended the terms of the Credit Agreement, resulting in a non-cash pre-tax loss on extinguishment of $2.3 million. In connection with the refinancings during the three and nine months ended September 30, 2016, we recorded a non-cash pre-tax loss on extinguishment of $18.6 million and incurred call premiums and other fees of $56.7 million. We do not consider these items to be indicative of our ongoing operating performance.
(b)
Eliminates foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $1.2 million and $23.9 million for the three and nine months ended September 30, 2016, respectively, and gains of $0.6 million and losses of $52.6 million for the three and nine months ended September 30, 2015, respectively.
(c)
Eliminates the non-cash non-service cost components of long-term employee benefit costs (discussed further at Note 6).
(d)
Represents expenses primarily related to employee termination benefits including our initiative to improve the overall cost structure within the European region as well as costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(e)
Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(f)
Represents costs associated with the offerings of our common shares by Carlyle, acquisition-related costs, including a $5.4 million gain recognized during the nine months ended September 30, 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest, and costs associated with changes in the fair value of contingent consideration associated with our acquisitions, all of which are not considered indicative of our ongoing operating performance.
(g)
Represents non-cash costs associated with stock-based compensation, including $8.2 million of expense during the nine months ended September 30, 2015 attributable to the accelerated vesting of all issued and outstanding stock options issued under the 2013 Plan as a result of the Change in Control.
(h)
Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of ongoing operations, including equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments and non-cash fair value inventory adjustments associated with our business combinations.
(i)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
(j)
As a result of currency devaluations in Venezuela, we recorded non-cash impairment charges relating to a real estate investment of $10.5 million and $30.6 million during the nine months ended September 30, 2016 and 2015, respectively (discussed further at Note 20). We do not consider these impairments to be indicative of our ongoing operating performance.
Shareholders' Equity
Shareholders' Equity
SHAREHOLDERS' EQUITY
The following tables present the change in total shareholders’ equity for the nine months ended September 30, 2016 and 2015, respectively.
 
Total Axalta
Noncontrolling
Interests
Total
Balance January 1, 2016
$
1,073.7

$
67.5

$
1,141.2

Net income
67.5

3.7

71.2

Other comprehensive income, net of tax
16.4

0.8

17.2

Exercise of stock options and associated tax benefits
21.3

—

21.3

Recognition of stock-based compensation
31.6

—

31.6

Noncontrolling interests of acquired subsidiaries
—

51.3

51.3

Dividends declared to noncontrolling interests
—

(3.0
)
(3.0
)
Balance September 30, 2016
$
1,210.5

$
120.3

$
1,330.8

 
Total Axalta
Noncontrolling
Interests
Total
Balance January 1, 2015
$
1,044.7

$
67.3

$
1,112.0

Net income
55.1

3.7

58.8

Other comprehensive loss, net of tax
(152.6
)
(2.3
)
(154.9
)
Exercise of stock options and associated tax benefits
66.4

—

66.4

Recognition of stock-based compensation
22.1

—

22.1

Noncontrolling interests of acquired subsidiaries
—

4.3

4.3

Dividends declared to noncontrolling interests
—

(4.4
)
(4.4
)
Balance September 30, 2015
$
1,035.7

$
68.6

$
1,104.3

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
Unrealized
Currency
Translation
Adjustments
Pension
Adjustments
Unrealized
Gain on Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

$
(3.2
)
$
(269.3
)
Current year deferrals to AOCI
15.9

—

0.3

(3.1
)
13.1

Reclassifications from AOCI to Net income
—

0.2

—

3.1

3.3

Net Change
15.9

0.2

0.3

—

16.4

September 30, 2016
$
(216.9
)
$
(33.2
)
$
0.4

$
(3.2
)
$
(252.9
)

The income tax provision related to the changes in pension and other long-term employee benefits for the nine months ended September 30, 2016 was $0.0 million. The cumulative income tax benefit related to the adjustment for pension at September 30, 2016 was $13.4 million. The income tax provision related to the change in the unrealized loss on derivatives for the nine months ended September 30, 2016 was $0.0 million. The cumulative income tax benefit related to the adjustment for unrealized loss on derivatives at September 30, 2016 was $1.9 million.
 
Unrealized
Currency
Translation
Adjustments
Pension and
Other
Long-term
Employee
Benefit
Adjustments
Unrealized
Loss on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
December 31, 2014
$
(72.1
)
$
(31.2
)
$
(0.2
)
$
0.2

$
(103.3
)
Current year deferrals to AOCI
(144.4
)
(1.6
)
—

(2.1
)
(148.1
)
Reclassifications from AOCI to Net income
—

(1.3
)
—

(3.2
)
(4.5
)
Net Change
(144.4
)
(2.9
)
—

(5.3
)
(152.6
)
September 30, 2015
$
(216.5
)
$
(34.1
)
$
(0.2
)
$
(5.1
)
$
(255.9
)

The income tax benefit related to the changes in pension and other long-term employee benefits for the nine months ended September 30, 2015 was expense of $1.8 million. The cumulative income tax benefit related to the adjustment for pension and other long-term employee benefits at September 30, 2015 was $15.2 million. The income tax benefit related to the change in the unrealized loss on derivatives for the nine months ended September 30, 2015 was $2.8 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at September 30, 2015 was $2.6 million.
Venezuela
Venezuela
VENEZUELA
Venezuela Currency Devaluation
As a result of challenging economic conditions, Venezuela’s foreign currency exchange mechanisms have continued to develop which have impacted our Venezuela operations.
From December 31, 2014 through June 30, 2015, we used the Complementary System of Foreign Currency Administration (SICAD) rate of 12.0 Venezuelan bolivars to 1.0 U.S. dollar. At June 30, 2015, we changed the exchange rate we used to remeasure our Venezuelan bolivars from the SICAD rate to the Marginal Foreign Exchange System (SIMADI) rate of 197.7 Venezuelan bolivars to 1.0 U.S. dollar. We believed it was appropriate to move from using the SICAD rate to using the SIMADI rate based on the culmination of relevant facts and circumstances, including our expectation that future dividend remittances would be made at the SIMADI rate.
In March 2016, the Venezuelan government enacted additional changes to its foreign currency exchange regime. The changes resulted in a reduction of its three-tiered exchange rate system to two tiers by eliminating the SICAD rate. The changes also devalued the official DIPRO rate (formerly CENCOEX), to 10.0 Venezuelan bolivars to 1.0 U.S. dollar from 6.3 Venezuelan bolivars to 1.0 U.S. dollar, while also creating a replacement floating supplementary market exchange rate, DICOM, which fully replaced SIMADI. DICOM is intended to provide limited access to a free market rate of exchange. At September 30, 2016, DIPRO remained at 10.0 Venezuelan bolivars to 1.0 U.S. dollar and the exchange rate for DICOM was 657.6 Venezuelan bolivars to 1.0 U.S. dollar.
We believe that significant uncertainty still exists regarding the exchange mechanisms in Venezuela, including how any such mechanisms will operate in the future and the availability of U.S. dollars under each mechanism.
At September 30, 2016, we continue to believe that the DICOM rate is the appropriate rate to use in the remeasurement of the monetary assets and liabilities of our Venezuelan subsidiary, which is a U.S. dollar functional entity.
Primarily as a result of the devalued Venezuelan bolivar, we recorded currency exchange losses of $1.2 million and $23.9 million for the three and nine months ended September 30, 2016, respectively and exchange gains of $0.6 million and exchange losses of $52.6 million for the three and nine months ended September 30, 2015, respectively. Included in the losses for the three and nine months ended September 30, 2015 was a loss of $53.2 million resulting from the devaluation caused by the change in exchange mechanism used at June 30, 2015.
Venezuela Financial Results
As a result of economic uncertainty and the resulting impact on our operations, we re-evaluated the carrying value of long-lived assets for our Venezuelan subsidiary at December 31, 2015. Based on an analysis of estimated undiscounted future cash flows expected to result from the use of our productive long-lived assets with finite lives, we determined that their carrying values were recoverable. The recoverability analysis was heavily dependent on continued demand and price assumptions of our local operations. Our price assumptions and the associated increases are expected to continue and are intended to allow us to keep pace with the changes in exchange rates and inflation. We believe these price increases are probable given our market share, customer base and historical success of implementing price increases in similar situations in the past. With the exception of intercompany inventory purchases, our operations in Venezuela were and are expected to be entirely self-funded. Due to the ability of our Venezuelan operations to procure raw materials through Axalta subsidiaries, we do not foresee any impact on our Venezuelan subsidiary's ability to operate. We have no current need or intention to repatriate Venezuelan earnings and remain committed to the business for the foreseeable future based on our current expectations.
If assumptions regarding our continued demand and ability to successfully implement and sustain price increases differ from actual results, or our ability to control the operations of our Venezuelan subsidiary change as a result of economic uncertainty or political instability, there is a risk that our productive long-lived assets may be impaired. Additionally, if DICOM continues to weaken, this could result in a material unfavorable impact on our results of operations and financial condition. Although through September 30, 2016, our operations continued to be challenged by further deteriorating macro-economic conditions within the country, we believe that the demand and price assumptions used at December 31, 2015 continue to be reasonable for assessing our operations recoverability.
At June 30, 2015, we separately evaluated the carrying value of our non-operating real estate investment as it is not part of our core operational activities. Based on this evaluation, we concluded that the carrying value of the real estate investment of $52.6 million was impaired as a result of the current real estate market prices and movement of our translation rate from 12.0 Venezuelan bolivars to 1.0 U.S. dollar to 197.7 Venezuelan bolivars to 1.0 U.S. dollar.
At June 30, 2016, we performed a separate evaluation of the carrying value of our non-operating real estate investment. Based on this evaluation, we concluded that the carrying value of the real estate investment of $21.5 million was impaired as a result of the current real estate market prices and movement of our translation rate from 270.5 Venezuelan bolivars to 1.0 U.S. dollar at March 31, 2016 to 626.0 Venezuelan bolivars to 1.0 U.S. dollar at June 30, 2016.
As a result of these evaluations on our real estate investment property we recorded impairments to write down the carrying value of the asset to its fair value at June 30, 2016 and 2015. Impairments of $10.5 million and $30.6 million were recorded within other expense, net for the nine months ended September 30, 2016 and 2015, respectively. The method used to determine fair values of the real estate investment included using Level 2 inputs in the form of observable market quotes from local real estate broker service firms.
At September 30, 2016 and December 31, 2015, our Venezuelan subsidiary had total assets of $142.8 million and $152.9 million, respectively, and total liabilities of $51.8 million and $42.2 million, respectively, which represent less than 3% of our consolidated assets and liabilities at the end of each respective period. Total liabilities include $32.1 million and $25.9 million of intercompany liabilities designated in U.S. dollars at September 30, 2016 and December 31, 2015, respectively. At September 30, 2016 and December 31, 2015, total non-monetary assets, net, were $93.5 million and $112.4 million, respectively.
For the three and nine months ended September 30, 2016, our Venezuelan subsidiary's net sales represented $19.4 million and $48.6 million of our consolidated net sales, respectively, which represented less than 2% for the respective periods. For the three and nine months ended September 30, 2015, our Venezuelan subsidiary represented $15.7 million and $110.8 million of our consolidated net sales, respectively, which represented less than 5% for the respective periods. For the three and nine months ended September 30, 2016, our Venezuelan subsidiary represented $11.1 million and $24.3 million of our consolidated income from operations, respectively, which represented less than 10% for the respective periods. For the three and nine months ended September 30, 2015, our Venezuelan subsidiary represented $0.9 million and $53.5 million of our consolidated income from operations, respectively, which represented less than 15% for the respective periods.
Subsequent Events
Subsequent Events [Text Block]
SUBSEQUENT EVENTS
In October 2016, we voluntarily prepaid $150.0 million of the outstanding New Dollar Term Loans. As a result of the prepayment, we will record a pre-tax loss on extinguishment of approximately $3.0 million.
Recent Accounting Guidance (Policies)
New Accounting Pronouncements, Policy
Accounting Guidance Issued But Not Yet Adopted
In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation. This standard is effective for fiscal years beginning after December 15, 2016, 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.
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.
In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", which requires that all deferred tax assets and liabilities be classified as non-current on the balance sheet. The standard is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We intend to early adopt this standard on December 31, 2016. The impacts to the accompanying condensed consolidated balance sheets would have resulted in corresponding net reclassifications from current assets and liabilities to non-current assets and liabilities at September 30, 2016 and December 31, 2015 of $59.2 million and $62.9 million, respectively.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the guidance that an entity should use related to revenue recognition. This standard was effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which delayed the effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies will be allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to this date. In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," which provides clarification around identifying performance obligations and the treatment of different licensing contracts. Additional standards related to revenue from contracts with customers have been issued during 2016 to provide narrow scope improvements and clarification. We 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.
We have determined that all other recently issued accounting standards will not have a material impact on our condensed consolidated financial statements or do not apply to our operations.
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 September 30, 2016 by reportable segment:
 
Performance
Coatings
Transportation
Coatings
Total
December 31, 2015
$
866.1

$
62.1

$
928.2

Goodwill from acquisitions
59.2

15.5

74.7

Foreign currency translation
12.1

0.9

13.0

September 30, 2016
$
937.4

$
78.5

$
1,015.9

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:
September 30, 2016
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology
$
435.2

$
(149.6
)
$
285.6

10.2
Trademarks - indefinite-lived
287.3

—

287.3

Indefinite
Trademarks - definite-lived
55.5

(11.0
)
44.5

14.8
Customer relationships
752.2

(130.5
)
621.7

18.9
Non-compete agreements
2.4

(1.6
)
0.8

4.6
Total
$
1,532.6

$
(292.7
)
$
1,239.9

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

$
(117.2
)
$
295.8

10.0
Trademarks—indefinite-lived
284.4

—

284.4

 Indefinite
Trademarks—definite-lived
45.2

(8.5
)
36.7

14.7
Customer relationships
676.1

(102.1
)
574.0

19.3
Non-compete agreements
1.9

(1.2
)
0.7

4.6
Total
$
1,420.6

$
(229.0
)
$
1,191.6

 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense 
The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2016 and each of the succeeding five years is:
Remainder of 2016
$
21.6

2017
$
86.1

2018
$
86.1

2019
$
86.0

2020
$
86.0

2021
$
85.9

Restructuring (Tables)
Restructuring and Related Costs
The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2015 to September 30, 2016:
 
2016 Activity
Balance at December 31, 2015
$
41.3

Expense Recorded
21.2

Payments Made
(19.8
)
Foreign Currency Impacts
0.6

Balance at September 30, 2016
$
43.3

Long-term Employee Benefits (Tables)
Schedule of Net Benefit Costs
The following table sets forth the components of net periodic benefit cost for the three and nine months ended September 30, 2016 and 2015:
 
 
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
Components of net periodic benefit cost:
 
 
 
 
Net periodic benefit cost:
 
 
 
 
Service cost
$
2.4

$
2.7

$
7.5

$
9.1

Interest cost
3.7

3.9

11.5

13.1

Expected return on plan assets
(3.0
)
(3.7
)
(9.6
)
(11.0
)
Amortization of actuarial loss, net
0.1

0.2

0.2

0.7

Amortization of prior service credit, net
—

—

—

(0.1
)
Net periodic benefit cost
$
3.2

$
3.1

$
9.6

$
11.8

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

Volatility
21.63
%
Dividend Yield
—

Discount Rate
1.45
%
Schedule of Stock Options Roll Forward 
A summary of stock option award activity as of and for the nine months ended September 30, 2016, is presented below:
 
Awards/Units (millions)
Weighted-
Average
Exercise
Price
Aggregate
Intrinsic
Value
 (millions)
Weighted
Average
Remaining
Contractual
Life (years)
Outstanding at January 1, 2016
11.0

$
12.19

 
 
Granted
1.1

$
23.27

 
 
Exercised
(1.7
)
$
8.09

 
 
Forfeited / cancelled
(0.4
)
$
9.48

 
 
Outstanding at September 30, 2016
10.0

$
14.16

 
 
Vested and expected to vest at September 30, 2016
10.0

$
14.16

$
146.0

7.42
Exercisable at September 30, 2016
8.1

$
11.17

$
140.5

7.04
Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward 
A summary of restricted stock and restricted stock unit award activity as of September 30, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
1.7

$
32.22

Granted
0.8

$
23.39

Vested
(0.2
)
$
31.71

Forfeited
—

$
—

Outstanding at September 30, 2016
2.3

$
29.22

Schedule of Performance Stock Roll Forward 
A summary of performance stock and performance stock unit award activity as of September 30, 2016 is presented below:
 
Awards
(millions)
Weighted-Average
Fair Value
Outstanding at January 1, 2016
—

$
—

Granted
0.3

$
24.74

Vested
—

$
—

Forfeited
—

$
—

Outstanding at September 30, 2016
0.3

$
24.74

Other Expense, Net (Tables)
Schedule of Other Nonoperating Income (Expense)
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
Foreign exchange losses, net
$
4.5

$
23.7

$
30.0

$
90.2

Impairment of real estate investment
—

—

10.5

30.6

Debt extinguishment and refinancing related costs
81.9

—

84.2

—

Other miscellaneous expense (income), net
1.0

(4.8
)
3.5

(9.4
)
Total
$
87.4

$
18.9

$
128.2

$
111.4

Income Taxes (Tables)
Schedule of Effective Income Tax Rate Reconciliation
Our effective income tax rates for the nine months ended September 30, 2016 and 2015 are as follows:
 
Nine Months Ended September 30,
 
2016
2015
Effective Tax Rate
32.5
%
45.2
%
Net Income (Loss) Per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
A reconciliation of our basic and diluted net income per common share is as follows:
 
Three Months Ended September 30,
Nine Months Ended September 30,
(In millions, except per share data)
2016
2015
2016
2015
Net income (loss) to common shareholders
$
(10.7
)
$
35.1

$
67.5

$
55.1

Basic weighted average shares outstanding
238.5

235.9

237.8

232.7

Diluted weighted average shares outstanding
238.5

240.9

242.4

239.1

Net income (loss) per Common Share:
 
 


Basic net income (loss) per share
$
(0.04
)
$
0.15

$
0.28

$
0.24

Diluted net income (loss) per share
$
(0.04
)
$
0.15

$
0.28

$
0.23

Accounts and Notes Receivable, Net (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable
 
September 30, 2016
December 31, 2015
Accounts receivable—trade, net
$
714.7

$
647.2

Notes receivable
65.6

43.0

Other
91.0

75.6

Total
$
871.3

$
765.8

Inventories (Tables)
Schedule of Inventory, Current
(12)    INVENTORIES
 
September 30, 2016
December 31, 2015
Finished products
$
320.4

$
313.1

Semi-finished products
85.1

88.5

Raw materials and supplies
140.1

129.1

Total
$
545.6

$
530.7

Property, Plant and Equipment, Net (Tables)
Property, Plant and Equipment
 
September 30, 2016
December 31, 2015
Property, plant and equipment
$
1,974.8

$
1,855.3

Accumulated depreciation
(602.5
)
(472.4
)
Property, plant, and equipment, net
$
1,372.3

$
1,382.9

Borrowings (Tables)
Schedule of Debt 
Borrowings are summarized as follows:
 
September 30, 2016
December 31, 2015
New Dollar Term Loan
$
1,925.3

$
2,042.5

New Euro Term Loan
209.7

428.0

2021 Dollar Senior Notes
—

750.0

2021 Euro Senior Notes
—

274.4

2024 Dollar Senior Notes
500.0

—

2024 Euro Senior Notes
375.7

—

2025 Euro Senior Notes
504.7

—

Short-term and other borrowings
37.0

26.5

Unamortized original issue discount
(12.7
)
(14.0
)
Unamortized deferred financing costs
(57.4
)
(65.9
)
 
$
3,482.3

$
3,441.5

Less:
 
 
Short term borrowings
$
26.7

$
22.7

Current portion of long-term borrowings
27.5

27.4

Long-term debt
$
3,428.1

$
3,391.4

Schedule of Maturities of Long-term Debt 
Below is a schedule of required future repayments of all borrowings outstanding at September 30, 2016.
Remainder of 2016
$
14.5

2017
29.7

2018
28.4

2019
27.9

2020
2,046.0

Thereafter
1,380.8

 
$
3,527.3

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 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 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 tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2016 and 2015 for these cash flow hedges.
 
Amount of (Gain) Loss
Recognized in OCI on
Derivatives (Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of (Gain) Loss
Reclassified from
Accumulated OCI to Income (Effective
Portion)
Location of (Gain) Loss Recognized 
in Income on 
Derivatives (Ineffective Portion)
Amount of (Gain) Loss
Recognized in Income on
Derivatives (Ineffective
Portion)
Derivatives in Cash Flow Hedging
Relationships
Three Months Ended September 30, 2016
Three Months Ended September 30, 2015
Three Months Ended September 30, 2016
Three Months Ended September 30, 2015
Three Months Ended September 30, 2016
Three Months Ended September 30, 2015
Interest rate contracts
$
(1.7
)
$
3.5

Interest expense, net
$
1.7

$
1.7

Interest expense, net
$
(2.0
)
$
1.0

 
Amount of (Gain) Loss
Recognized in OCI on
Derivatives (Effective
Portion)
Location of (Gain) Loss Reclassified from 
Accumulated OCI into Income (Effective Portion)
Amount of (Gain) Loss
Reclassified from
Accumulated OCI to Income (Effective
Portion)
Location of (Gain) Loss Recognized 
in Income on 
Derivatives (Ineffective Portion)
Amount of (Gain) Loss
Recognized in Income on
Derivatives (Ineffective
Portion)
Derivatives in Cash Flow Hedging
Relationships
Nine Months Ended September 30, 2016
Nine Months Ended September 30, 2015
Nine Months Ended September 30, 2016
Nine Months Ended September 30, 2015
Nine Months Ended September 30, 2016
Nine Months Ended September 30, 2015
Interest rate contracts
$
—

$
8.0

Interest expense, net
$
4.9

$
4.9

Interest expense, net
$
1.3

$
2.4

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:
 
 
Three Months Ended September 30,
Nine Months Ended September 30,
Derivatives Not Designated as Hedging
Instruments under ASC 815
Location of (Gain) Loss Recognized in
Income on Derivatives
2016
2015
2016
2015
Foreign currency forward contracts
Other expense, net
$
0.4

$
(4.4
)
$
4.4

$
(6.3
)
Interest rate cap
Interest expense, net
—

0.1

—

—

 
 
$
0.4

$
(4.3
)
$
4.4

$
(6.3
)
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 our condensed consolidated balance sheet:
 
September 30, 2016
December 31, 2015
Prepaid and other assets:
 
 
Interest rate swaps
$
—

$
0.4

Total assets
$
—

$
0.4

Other accrued liabilities:
 
 
Interest rate swaps
$
2.8

$
—

Other liabilities:
 
 
Interest rate swaps
$
—

$
1.8

Total liabilities
$
2.8

$
1.8

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value 
The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheet:
 
September 30, 2016
December 31, 2015
Prepaid and other assets:
 
 
Foreign currency contracts
$
0.3

$
0.3

Total assets
$
0.3

$
0.3

Other accrued liabilities:
 
 
Foreign currency contracts
$
0.3

$
—

Total liabilities:
$
0.3

$
—

Segments (Tables)
Reconciliation of Revenue from Segments to Consolidated 
Our business serves four end-markets globally as follows: 
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
Performance Coatings
 
 
 
 
Refinish
$
434.5

$
426.9

$
1,262.0

$
1,280.2

Industrial
184.8

173.7

532.4

516.4

Total Net sales Performance Coatings
619.3

600.6

1,794.4

1,796.6

Transportation Coatings
 
 
 
 
Light Vehicle
321.1

303.7

994.9

984.1

Commercial Vehicle
83.0

96.0

254.8

302.9

Total Net sales Transportation Coatings
404.1

399.7

1,249.7

1,287.0

Total Net sales
$
1,023.4

$
1,000.3

$
3,044.1

$
3,083.6

Schedule of Segment Reporting Information, by Segment 
 
Three Months Ended September 30,
 
2016
2015
 
Performance
Coatings
Transportation
Coatings
Total
Performance
Coatings
Transportation
Coatings
Total
Net sales (1)
$
619.3

$
404.1

$
1,023.4

$
600.6

$
399.7

$
1,000.3

Equity in earnings (losses) in unconsolidated affiliates
(0.4
)
0.1

(0.3
)
0.1

—

0.1

Adjusted EBITDA (2)
148.5

84.7

233.2

139.0

77.9

216.9

Investment in unconsolidated affiliates
3.3

11.5

14.8

5.5

6.8

12.3

 
Nine Months Ended September 30,
 
2016
2015
 
Performance
Coatings
Transportation
Coatings
Total
Performance
Coatings
Transportation
Coatings
Total
Net sales (1)
$
1,794.4

$
1,249.7

$
3,044.1

$
1,796.6

$
1,287.0

$
3,083.6

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

—

0.4

0.5

0.9

Adjusted EBITDA (2)
415.9

264.7

680.6

408.2

246.2

654.4

Investment in unconsolidated affiliates
3.3

11.5

14.8

5.5

6.8

12.3

(1)
The Company has no intercompany sales between segments.
(2)
The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents EBITDA adjusted for the select items referred to above. Reconciliation of Adjusted EBITDA to income before income taxes follows:
Reconciliation of Operating Profit (Loss) from Segments to Consolidated 
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
Income (loss) before income taxes
$
(10.1
)
$
54.2

$
105.5

$
107.3

Interest expense, net
42.9

50.8

140.8

150.0

Depreciation and amortization
81.2

75.4

235.8

225.5

EBITDA
114.0

180.4

482.1

482.8

Debt extinguishment and refinancing related costs (a)
81.9

—

84.2

—

Foreign exchange remeasurement losses (b)
4.5

23.7

30.0

90.2

Long-term employee benefit plan adjustments (c)
0.8

(0.5
)
2.1

(0.1
)
Termination benefits and other employee related costs (d)
16.3

0.8

25.2

19.3

Consulting and advisory fees (e)
2.7

7.2

8.3

17.1

Offering and transactional costs (f)
3.0

1.4

4.4

(2.3
)
Stock-based compensation (g)
10.0

7.9

31.6

22.1

Other adjustments (h)
1.5

(3.7
)
5.2

(0.9
)
Dividends in respect of noncontrolling interest (i)
(1.5
)
(0.3
)
(3.0
)
(4.4
)
Asset impairment (j)
—

—

10.5

30.6

Adjusted EBITDA
$
233.2

$
216.9

$
680.6

$
654.4

(a)
During the three and nine months ended September 30, 2016, we prepaid outstanding principal on our term loans, resulting in non-cash pre-tax losses on extinguishment of $4.3 million and $6.6 million, respectively. During the three and nine months ended September 30, 2016, we amended the terms of the Credit Agreement, resulting in a non-cash pre-tax loss on extinguishment of $2.3 million. In connection with the refinancings during the three and nine months ended September 30, 2016, we recorded a non-cash pre-tax loss on extinguishment of $18.6 million and incurred call premiums and other fees of $56.7 million. We do not consider these items to be indicative of our ongoing operating performance.
(b)
Eliminates foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $1.2 million and $23.9 million for the three and nine months ended September 30, 2016, respectively, and gains of $0.6 million and losses of $52.6 million for the three and nine months ended September 30, 2015, respectively.
(c)
Eliminates the non-cash non-service cost components of long-term employee benefit costs (discussed further at Note 6).
(d)
Represents expenses primarily related to employee termination benefits including our initiative to improve the overall cost structure within the European region as well as costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(e)
Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.
(f)
Represents costs associated with the offerings of our common shares by Carlyle, acquisition-related costs, including a $5.4 million gain recognized during the nine months ended September 30, 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest, and costs associated with changes in the fair value of contingent consideration associated with our acquisitions, all of which are not considered indicative of our ongoing operating performance.
(g)
Represents non-cash costs associated with stock-based compensation, including $8.2 million of expense during the nine months ended September 30, 2015 attributable to the accelerated vesting of all issued and outstanding stock options issued under the 2013 Plan as a result of the Change in Control.
(h)
Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of ongoing operations, including equity investee dividends, indemnity losses (gains) associated with the Acquisition, losses (gains) on sale and disposal of property, plant and equipment, losses (gains) on the remaining foreign currency derivative instruments and non-cash fair value inventory adjustments associated with our business combinations.
(i)
Represents the payment of dividends to our joint venture partners by our consolidated entities that are not wholly owned, which are reflected to show the cash operating performance of these entities on Axalta's financial statements.
(j)
As a result of currency devaluations in Venezuela, we recorded non-cash impairment charges relating to a real estate investment of $10.5 million and $30.6 million during the nine months ended September 30, 2016 and 2015, respectively (discussed further at Note 20). We do not consider these impairments to be indicative of our ongoing operating performance.
Shareholders' Equity (Tables)
Schedule of Stockholders Equity
The following tables present the change in total shareholders’ equity for the nine months ended September 30, 2016 and 2015, respectively.
 
Total Axalta
Noncontrolling
Interests
Total
Balance January 1, 2016
$
1,073.7

$
67.5

$
1,141.2

Net income
67.5

3.7

71.2

Other comprehensive income, net of tax
16.4

0.8

17.2

Exercise of stock options and associated tax benefits
21.3

—

21.3

Recognition of stock-based compensation
31.6

—

31.6

Noncontrolling interests of acquired subsidiaries
—

51.3

51.3

Dividends declared to noncontrolling interests
—

(3.0
)
(3.0
)
Balance September 30, 2016
$
1,210.5

$
120.3

$
1,330.8

 
Total Axalta
Noncontrolling
Interests
Total
Balance January 1, 2015
$
1,044.7

$
67.3

$
1,112.0

Net income
55.1

3.7

58.8

Other comprehensive loss, net of tax
(152.6
)
(2.3
)
(154.9
)
Exercise of stock options and associated tax benefits
66.4

—

66.4

Recognition of stock-based compensation
22.1

—

22.1

Noncontrolling interests of acquired subsidiaries
—

4.3

4.3

Dividends declared to noncontrolling interests
—

(4.4
)
(4.4
)
Balance September 30, 2015
$
1,035.7

$
68.6

$
1,104.3

Accumulated Other Comprehensive Income (Loss) (Tables)
Schedule of Accumulated Other Comprehensive Income
 
Unrealized
Currency
Translation
Adjustments
Pension
Adjustments
Unrealized
Gain on Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
December 31, 2015
$
(232.8
)
$
(33.4
)
$
0.1

$
(3.2
)
$
(269.3
)
Current year deferrals to AOCI
15.9

—

0.3

(3.1
)
13.1

Reclassifications from AOCI to Net income
—

0.2

—

3.1

3.3

Net Change
15.9

0.2

0.3

—

16.4

September 30, 2016
$
(216.9
)
$
(33.2
)
$
0.4

$
(3.2
)
$
(252.9
)
 
Unrealized
Currency
Translation
Adjustments
Pension and
Other
Long-term
Employee
Benefit
Adjustments
Unrealized
Loss on
Securities
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
December 31, 2014
$
(72.1
)
$
(31.2
)
$
(0.2
)
$
0.2

$
(103.3
)
Current year deferrals to AOCI
(144.4
)
(1.6
)
—

(2.1
)
(148.1
)
Reclassifications from AOCI to Net income
—

(1.3
)
—

(3.2
)
(4.5
)
Net Change
(144.4
)
(2.9
)
—

(5.3
)
(152.6
)
September 30, 2015
$
(216.5
)
$
(34.1
)
$
(0.2
)
$
(5.1
)
$
(255.9
)
Basis of Presentation of the Condensed Consolidated Financial Statements (Details) (USD $)
9 Months Ended 1 Months Ended 17 Months Ended
Sep. 30, 2016
Secondary Offering [Member]
Nov. 30, 2014
Common Stock [Member]
The Carlyle Group L.P. [Member]
IPO [Member]
Aug. 31, 2016
Common Stock [Member]
The Carlyle Group L.P. [Member]
Secondary Offering [Member]
offering
Nov. 30, 2014
Common Stock [Member]
The Carlyle Group L.P. [Member]
Secondary Offering [Member]
Minimum [Member]
Nov. 30, 2014
Common Stock [Member]
The Carlyle Group L.P. [Member]
Secondary Offering [Member]
Maximum [Member]
Subsidiary, Sale of Stock [Line Items]
 
 
 
 
 
Number of shares issued in transaction (in shares)
 
57,500,000 
170,300,000.0 
 
 
Sale of stock, price per share (dollars per share)
 
$ 19.50 
 
$ 27.93 
$ 29.75 
Number of offerings
 
 
6 
 
 
Proceeds from issuance of common stock
$ 0 
 
 
 
 
Recent Accounting Guidance (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
Liabilities
$ 4,811.7 
$ 4,713.0 
New Accounting Pronouncement, Early Adoption, Effect [Member]
 
 
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
Deferred Tax Assets, Net
(59.2)
(62.9)
Liabilities
$ (59.2)
$ (62.9)
Goodwill and Identifiable Intangible Assets - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Acquisition
Sep. 30, 2016
installment
Acquisition
Business Acquisition [Line Items]
 
 
Number of business acquisitions
3 
3,000,000 
Percentage of voting interests acquired
51.00% 
51.00% 
Number of installments
 
2 
Noncontrolling interest, fair value
$ 51.3 
$ 51.3 
Assets acquired
156.6 
156.6 
Revenue of acquiree since acquisition date
21.4 
21.4 
Finite-lived intangible assets acquired
 
96.8 
Technology-Based Intangible Assets [Member]
 
 
Business Acquisition [Line Items]
 
 
Finite-lived intangible assets acquired
 
17.7 
Trademarks [Member]
 
 
Business Acquisition [Line Items]
 
 
Finite-lived intangible assets acquired
 
9.3 
Customer Relationships [Member]
 
 
Business Acquisition [Line Items]
 
 
Finite-lived intangible assets acquired
 
69.3 
Noncompete Agreements [Member]
 
 
Business Acquisition [Line Items]
 
 
Finite-lived intangible assets acquired
 
$ 0.5 
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Goodwill [Roll Forward]
 
Goodwill, beginning balance
$ 928.2 
Goodwill from acquisitions
74.7 
Foreign currency translation
13.0 
Goodwill, ending balance
1,015.9 
Performance Coatings [Member]
 
Goodwill [Roll Forward]
 
Goodwill, beginning balance
866.1 
Goodwill from acquisitions
59.2 
Foreign currency translation
12.1 
Goodwill, ending balance
937.4 
Transportation Coatings [Member]
 
Goodwill [Roll Forward]
 
Goodwill, beginning balance
62.1 
Goodwill from acquisitions
15.5 
Foreign currency translation
0.9 
Goodwill, ending balance
$ 78.5 
Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Dec. 31, 2015
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Finite-lived intangible assets acquired
 
$ 96.8 
 
Gross Carrying Amount
1,532.6 
1,532.6 
1,420.6 
Accumulated Amortization
(292.7)
(292.7)
(229.0)
Net Book Value, definite-lived
1,239.9 
1,239.9 
1,191.6 
Trademarks [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Net Book Value, indefinite-lived
287.3 
287.3 
284.4 
Technology-Based Intangible Assets [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Finite-lived intangible assets acquired
 
17.7 
 
Gross Carrying Amount
435.2 
435.2 
413.0 
Accumulated Amortization
(149.6)
(149.6)
(117.2)
Net Book Value, definite-lived
285.6 
285.6 
295.8 
Weighted average amortization periods (years)
10 years 2 months 
 
10 years 
Trademarks [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Finite-lived intangible assets acquired
 
9.3 
 
Gross Carrying Amount
55.5 
55.5 
45.2 
Accumulated Amortization
(11.0)
(11.0)
(8.5)
Net Book Value, definite-lived
44.5 
44.5 
36.7 
Weighted average amortization periods (years)
14 years 8 months 31 days 
 
14 years 8 months 
Customer Relationships [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Finite-lived intangible assets acquired
 
69.3 
 
Gross Carrying Amount
752.2 
752.2 
676.1 
Accumulated Amortization
(130.5)
(130.5)
(102.1)
Net Book Value, definite-lived
621.7 
621.7 
574.0 
Weighted average amortization periods (years)
18 years 11 months 
 
19 years 3 months 
Noncompete Agreements [Member]
 
 
 
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
 
 
 
Finite-lived intangible assets acquired
 
0.5 
 
Gross Carrying Amount
2.4 
2.4 
1.9 
Accumulated Amortization
(1.6)
(1.6)
(1.2)
Net Book Value, definite-lived
$ 0.8 
$ 0.8 
$ 0.7 
Weighted average amortization periods (years)
4 years 6 months 22 days 
 
4 years 7 months 6 days 
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
Remainder of 2016
$ 21.6 
2017
86.1 
2018
86.1 
2019
86.0 
2020
86.0 
Finite-Lived Intangible Assets, Amortization Expense, after Year Five
$ 85.9 
Restructuring - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring costs
$ 15.6 
$ 0.7 
$ 21.2 
$ 16.0 
Minimum [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Payment term (in months)
 
 
12 months 
 
Maximum [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Payment term (in months)
 
 
15 months 
 
Restructuring - Restructuring Reserve (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Restructuring Reserve [Roll Forward]
 
 
 
 
Beginning balance
 
 
$ 41.3 
 
Expense Recorded
15.6 
0.7 
21.2 
16.0 
Payments Made
 
 
(19.8)
 
Foreign Currency Impacts
 
 
0.6 
 
Ending balance
$ 43.3 
 
$ 43.3 
 
Commitments and Contingencies (Details) (USD $)
9 Months Ended
Sep. 30, 2016
lease
Dec. 31, 2015
Loss Contingencies [Line Items]
 
 
Accrued in period
$ 0 
$ 0 
Number of Built-to-Suit lease arrangements
2 
 
Build To Suit Lease [Member]
 
 
Loss Contingencies [Line Items]
 
 
Build-to-suit construction in progress
25,100,000 
 
Total estimated cost of build-to-suit construction in progress
$ 55,000,000 
 
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) (Pension Plan [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Pension Plan [Member]
 
 
 
 
Net periodic benefit cost:
 
 
 
 
Service cost
$ 2.4 
$ 2.7 
$ 7.5 
$ 9.1 
Interest cost
3.7 
3.9 
11.5 
13.1 
Expected return on plan assets
(3.0)
(3.7)
(9.6)
(11.0)
Amortization of actuarial loss, net
0.1 
0.2 
0.2 
0.7 
Amortization of prior service credit, net
0 
0 
0 
(0.1)
Net periodic benefit (gain) cost
$ 3.2 
$ 3.1 
$ 9.6 
$ 11.8 
Long-term Employee Benefits - Additional Information (Details) (Other Postretirement Benefit Plan [Member], USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2015
Sep. 30, 2016
Dec. 31, 2015
Other Postretirement Benefit Plan [Member]
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Amortization of prior service credit, net
$ 900,000 
$ 2,800,000 
 
 
Liability
 
 
$ 0 
$ 0 
Stock-based Compensation - Additional Information (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2015
2013 Plan [Member]
Jun. 30, 2015
The Carlyle Group L.P. [Member]
Sep. 30, 2016
Employee Stock Option [Member]
Sep. 30, 2016
Employee Stock Option [Member]
2014 Plan [Member]
Sep. 30, 2016
Restricted Stock and Restricted Stock Units [Member]
Sep. 30, 2016
Performance Shares [Member]
Sep. 30, 2016
Performance Shares [Member]
Minimum [Member]
Sep. 30, 2016
Performance Shares [Member]
Maximum [Member]
Sep. 30, 2016
Management [Member]
Restricted Stock and Restricted Stock Units [Member]
Minimum [Member]
Sep. 30, 2016
Management [Member]
Restricted Stock and Restricted Stock Units [Member]
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
$ 10.0 
$ 7.9 
$ 31.6 
$ 22.1 
 
 
 
 
 
 
 
 
 
 
Tax benefit from compensation expense
5.3 
2.8 
10.8 
6.6 
 
 
 
 
 
 
 
 
 
 
Accelerated compensation cost
 
 
 
 
8.2 
 
 
 
 
 
 
 
 
 
Ownership percentage (less than)
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
Grants in period
 
 
1.1 
 
 
 
 
 
 
 
 
 
 
 
Weighted average exercise price
 
 
$ 23.27 
 
 
 
 
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
 
 
 
 
0.8 
 
 
 
 
 
Forfeiture rate
 
 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
Grant date fair value (dollars per share)
 
 
$ 5.68 
 
 
 
 
 
 
 
 
 
 
 
Expiration period
 
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
3 years 
3 years 
 
 
 
2 years 
3 years 
Expected term
 
 
 
 
 
 
 
6 years 
 
 
 
 
 
 
Expected dividend rate
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
Cash received from exercise of stock options
 
 
21.3 
 
 
 
 
 
 
 
 
 
 
 
Tax benefit realized on the vesting of restricted stock
 
 
1.9 
 
 
 
 
 
 
 
 
 
 
 
Future tax benefit to be realized from exercises of options during the period
 
 
10.2 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value of exercises during the period
 
 
34.2 
 
 
 
 
 
 
 
 
 
 
 
Compensation not yet recognized, share-based awards other than options
 
 
 
 
 
 
 
 
31.2 
6.7 
 
 
 
 
Period for recognition of compensation not yet recognized
 
 
 
 
 
 
2 years 
 
1 year 10 months 17 days 
2 years 4 months 2 days 
 
 
 
 
Weighted average grant date fair value (dollars per share)
 
 
 
 
 
 
 
 
$ 23.39 
$ 24.74 
 
 
 
 
Tax benefit realized from exercise of stock options
 
 
7.5 
 
 
 
 
 
 
 
 
 
 
 
Compensation not yet recognized
$ 6.5 
 
$ 6.5 
 
 
 
 
 
 
 
 
 
 
 
Service period
 
 
 
 
 
 
 
 
 
3 years 
 
 
 
 
Actual number of shares to be awarded
 
 
 
 
 
 
 
 
 
 
0.00% 
200.00% 
 
 
Stock-based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assertions (Details) (2014 Plan [Member], Employee Stock Option [Member])
9 Months Ended
Sep. 30, 2016
2014 Plan [Member] |
Employee Stock Option [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Expected Term
6 years 
Volatility
21.63% 
Dividend Yield
0.00% 
Discount Rate
1.45% 
Stock-based Compensation - Schedule of Stock Option Activity (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Awards (in millions)
 
Beginning Balance
11.0 
Granted (in shares)
1.1 
Exercised (in shares)
(1.7)
Forfeited (in shares)
(0.4)
Ending balance
10.0 
Weighted Average Exercise Price (usd per share)
 
Beginning Balance (usd per share)
$ 12.19 
Granted (usd per share)
$ 23.27 
Exercised (usd per share)
$ 8.09 
Forfeited (usd per share)
$ 9.48 
Ending Balance (usd) per share)
$ 14.16 
Vested and Expected to Vest
 
Vested and expected to vest (in shares)
10.0 
Vested and expected to vest, weighted average exercise price (use)
$ 14.16 
Vested and expected to vest, aggregate intrinsic value
$ 146.0 
Vested and expected to vest, weighted average contractual life (in years)
7 years 4 months 31 days 
Exercisable
 
Exercisable, (in shares)
8.1 
Exercisable, (usd per share)
$ 11.17 
Exercisable, aggregate intrinsic value
$ 140.5 
Exercisable, weighted average contractual life (in years)
7 years 0 months 15 days 
Stock-based Compensation - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) (Restricted Stock and Restricted Stock Units [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Restricted Stock and Restricted Stock Units [Member]
 
Awards (in millions)
 
Beginning Balance (in shares)
1.7 
Granted (in shares)
0.8 
Vested (in shares)
(0.2)
Forfeited (in shares)
0 
Ending Balance (in shares)
2.3 
Weighted Average Fair Value (usd per share)
 
Beginning Balance (usd per share)
$ 32.22 
Granted (usd per share)
$ 23.39 
Vested (usd per share)
$ 31.71 
Forfeited (usd per share)
$ 0.00 
Ending Balance (usd per share)
$ 29.22 
Stock-based Compensation Schedule of Performance Stock Roll Forward (Details) (Performance Shares [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Performance Shares [Member]
 
Awards (in millions)
 
Beginning Balance (in shares)
0 
Granted (in shares)
0.3 
Vested (in shares)
0 
Forfeited (in shares)
0 
Ending Balance (in shares)
0.3 
Weighted Average Fair Value (usd per share)
 
Beginning Balance (usd per share)
$ 0.00 
Granted (usd per share)
$ 24.74 
Vested (usd per share)
$ 0.00 
Forfeited (usd per share)
$ 0.00 
Ending Balance (usd per share)
$ 24.74 
Other Expense, Net - Schedule of Other Non-operating Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Other Income and Expenses [Abstract]
 
 
 
 
Foreign exchange losses, net
$ 4.5 
$ 23.7 
$ 30.0 
$ 90.2 
Impairment of real estate investment
0 
0 
10.5 
30.6 
Debt extinguishment and refinancing related costs
81.9 
0 
84.2 
0 
Other miscellaneous expense (income), net
1.0 
(4.8)
3.5 
(9.4)
Total
$ 87.4 
$ 18.9 
$ 128.2 
$ 111.4 
Other Expense, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Other Income and Expenses [Abstract]
 
Additional interest purchased
25.00% 
Investment in equity affiliate
$ 4.3 
Equity method investments, remeasurement gain
$ 5.4 
Income Taxes (Details)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Income Tax Disclosure [Abstract]
 
 
Effective income tax rate, percent
32.50% 
45.20% 
Increase in effective tax rate resulting from impairment loss, percent
2.90% 
10.00% 
Net Income (Loss) Per Common Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Earnings Per Share [Abstract]
 
 
 
 
Net income (loss) to common shareholders
$ (10.7)
$ 35.1 
$ 67.5 
$ 55.1 
Basic weighted average shares outstanding
238.5 
235.9 
237.8 
232.7 
Diluted weighted average shares outstanding
238.5 
240.9 
242.4 
239.1 
Net income (loss) per Common Share:
 
 
 
 
Basic net income (loss) per share (dollars per share)
$ (0.04)
$ 0.15 
$ 0.28 
$ 0.24 
Diluted net income (loss) per share (dollars per share)
$ (0.04)
$ 0.15 
$ 0.28 
$ 0.23 
Antidilutive securities excluded from computation of earnings per share (in shares)
13.0 
1.1 
1.4 
0.6 
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Receivables [Abstract]
 
 
Accounts receivable—trade, net
$ 714.7 
$ 647.2 
Notes receivable
65.6 
43.0 
Other
91.0 
75.6 
Total
$ 871.3 
$ 765.8 
Accounts and Notes Receivable, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Receivables [Abstract]
 
 
 
 
 
Allowance for doubtful accounts
$ 12.1 
 
$ 12.1 
 
$ 10.7 
Bad debt expense
$ 0.6 
$ 0.2 
$ 1.7 
$ 3.3 
 
Inventories - Schedule of Inventory (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Finished products
$ 320.4 
$ 313.1 
Semi-finished products
85.1 
88.5 
Raw materials and supplies
140.1 
129.1 
Inventories
$ 545.6 
$ 530.7 
Inventories - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Stores and supplies inventories
$ 21.0 
$ 20.8 
Property, Plant and Equipment, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Property, Plant and Equipment [Abstract]
 
 
 
 
Depreciation
$ 45.0 
$ 42.2 
$ 130.6 
$ 127.9 
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Property, Plant and Equipment [Abstract]
 
 
Property, plant and equipment
$ 1,974.8 
$ 1,855.3 
Accumulated depreciation
(602.5)
(472.4)
Property, plant, and equipment, net
$ 1,372.3 
$ 1,382.9 
Borrowings - Schedule of Debt (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Short-term and other borrowings
$ 37.0 
$ 26.5 
Unamortized original issue discount
(12.7)
(14.0)
Unamortized deferred financing costs
(57.4)
(65.9)
Debt and Capital Lease Obligations
3,482.3 
3,441.5 
Short term borrowings
26.7 
22.7 
Current portion of long-term borrowings
27.5 
27.4 
Long-term debt
3,428.1 
3,391.4 
New Dollar Term Loan [Member]
 
 
Debt Instrument [Line Items]
 
 
Term loan
1,925.3 
2,042.5 
New Euro Term Loan [Member]
 
 
Debt Instrument [Line Items]
 
 
Term loan
209.7 
428.0 
2021 Dollar Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
0 
750.0 
2021 Euro Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
0 
274.4 
2024 Dollar Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
500.0 
0 
Unamortized original issue discount
(2.0)
 
2024 Euro Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
375.7 
0 
2025 Euro Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior Notes
$ 504.7 
$ 0 
Borrowings - Senior Secured Credit Facilities (Details)
0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended
Aug. 16, 2016
Feb. 3, 2014
USD ($)
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Aug. 1, 2016
Revolving Credit Facility [Member]
Sep. 30, 2016
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2016
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2014
Revolving Credit Facility [Member]
USD ($)
Aug. 1, 2016
Revolving Credit Facility [Member]
Jul. 31, 2016
Revolving Credit Facility [Member]
Dec. 31, 2015
Revolving Credit Facility [Member]
USD ($)
Feb. 3, 2014
Base Rate [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Prime Rate [Member]
Adjusted Euro Currency Rate [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
USD ($)
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Dollar Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Eurocurrency Rate Loans [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
EUR (€)
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Feb. 3, 2014
Euro Term Loan Due 2020 [Member]
Interest Rate Floor [Member]
Prior To Amendment [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Apr. 30, 2016
New Dollar Term Loan [Member]
USD ($)
Jun. 30, 2015
New Dollar Term Loan [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Interest Rate Floor [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Base Rate [Member]
Feb. 3, 2014
New Dollar Term Loan [Member]
Base Rate [Member]
Feb. 3, 2014
New Euro Term Loan [Member]
Sep. 30, 2016
New Euro Term Loan [Member]
USD ($)
Jun. 30, 2015
New Euro Term Loan [Member]
Feb. 3, 2014
New Euro Term Loan [Member]
Eurocurrency Rate Loans [Member]
Feb. 3, 2014
New Euro Term Loan [Member]
Eurocurrency Rate Loans [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]
Sep. 30, 2016
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]
Eurodollar [Member]
Revolving Credit Facility [Member]
Aug. 16, 2016
Senior Secured Credit Facility, Base Rate Loans [Member]
Federal Funds Effective Swap Rate [Member]
Revolving Credit Facility [Member]
Sep. 30, 2016
Term Loans [Member]
USD ($)
Sep. 30, 2016
Term Loans [Member]
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, long-term and short-term, combined amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,282,800,000 
 
 
€ 397,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
0.50% 
 
 
 
3.50% 
1.25% 
 
2.50% 
 
 
 
2.75% 
3.00% 
 
1.00% 
2.00% 
 
 
 
3.00% 
3.25% 
 
2.75% 
3.50% 
0.00% 
 
1.75% 
2.50% 
 
1.00% 
0.50% 
 
 
Debt instrument covenant maximum consolidated leverage ratio
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
 
 
 
 
 
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, effective percentage rate range, minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.00% 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument basis spread reduced on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.25% 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
0.25% 
 
 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate, stated percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument periodic payment principal percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, maturity date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 01, 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from maturities, prepayments and calls of other investments (more than)
 
25,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage on excess cash flow for mandatory prepayments of debt
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Decrease in percentage on excess cash flow for mandatory prepayments of debt
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage on first lien leverage ratio for mandatory prepayments of debt
 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First lien leverage ratio upper limit
3.00 
4.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First lien leverage ratio lower limit
2.50 
3.50 
5.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Periodic payment, percent of principal
 
 
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 (greater than)
 
 
 
 
 
 
 
 
 
 
30.00% 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent not cash collateralized (at least)
 
 
 
 
 
 
 
 
 
 
103.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Step-down percent for 3.00:1.00 leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
 
 
1.50% 
 
 
 
 
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 
 
400,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt extinguishment and refinancing related costs
 
 
81,900,000 
0 
84,200,000 
0 
 
2,300,000 
2,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,300,000 
6,600,000 
Line of credit facility, maximum amount outstanding during period
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding, amount
 
 
 
 
 
 
 
21,500,000 
21,500,000 
 
 
 
24,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
378,500,000 
378,500,000 
 
 
 
375,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100,000,000 
 
 
 
 
 
 
 
$ 200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings - Senior Notes (Details)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
Sep. 30, 2016
Debt Instrument, Redemption, Period One [Member]
2021 Dollar Senior Notes [Member]
Sep. 30, 2016
Debt Instrument, Redemption, Period One [Member]
Euro Senior Notes [Member]
Sep. 30, 2016
2021 Dollar Senior Notes [Member]
USD ($)
Sep. 30, 2016
2021 Dollar Senior Notes [Member]
USD ($)
Feb. 1, 2013
2021 Dollar Senior Notes [Member]
USD ($)
Sep. 30, 2016
2021 Euro Senior Notes [Member]
USD ($)
Sep. 30, 2016
2021 Euro Senior Notes [Member]
USD ($)
Feb. 1, 2013
2021 Euro Senior Notes [Member]
EUR (€)
Sep. 30, 2016
2024 Dollar Senior Notes [Member]
USD ($)
Aug. 16, 2016
2024 Dollar Senior Notes [Member]
Any Time Prior to August 15, 2019 [Member]
Sep. 30, 2016
2024 Euro Senior Notes [Member]
EUR (€)
Aug. 16, 2016
2024 Euro Senior Notes [Member]
Any Time Prior to August 15, 2019 [Member]
Sep. 30, 2016
2025 Euro Senior Notes [Member]
EUR (€)
Sep. 30, 2016
2025 Euro Senior Notes [Member]
Any Time Prior to January 15, 2020 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
$ 750.0 
 
 
€ 250.0 
$ 500.0 
 
€ 335.0 
 
€ 450.0 
 
Debt instrument, interest rate, stated percentage
 
 
 
 
 
 
 
 
 
7.375% 
 
 
5.75% 
4.875% 
 
4.25% 
 
3.75% 
 
Debt instrument, redemption price, percentage
 
 
 
 
 
105.531% 
104.313% 
 
 
 
 
 
 
104.875% 
 
104.25% 
 
103.75% 
 
Debt extinguishment and refinancing related costs
81.9 
0 
84.2 
0 
 
 
 
56.9 
56.9 
 
18.4 
18.4 
 
 
 
 
 
 
 
Debt instrument redemption price, monetary
 
 
 
 
 
 
 
(41.5)
(41.5)
 
(12.1)
(12.1)
 
 
 
 
 
 
 
Write off of deferred debt issuance cost
 
 
 
 
 
 
 
13.0 
13.0 
 
5.6 
5.6 
 
 
 
 
 
 
 
Debt instrument, fee amount
 
 
 
 
 
 
 
2.4 
2.4 
 
0.7 
0.7 
 
 
 
 
 
 
 
Discount, percent of par
 
 
 
 
 
 
 
 
 
 
 
 
 
99.951% 
 
 
 
 
 
Debt instrument, unamortized discount
$ 12.7 
 
$ 12.7 
 
$ 14.0 
 
 
 
 
 
 
 
 
$ 2.0 
 
 
 
 
 
Debt instrument, redemption price, percentage of principal amount redeemed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
 
40.00% 
 
40.00% 
Percent of principal required to be outstanding (at least)
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
50.00% 
 
50.00% 
 
Redemption percentage if change in control occurs
 
 
 
 
 
 
 
 
 
 
 
 
 
101.00% 
 
101.00% 
 
101.00% 
 
Borrowings - Debt Instrument Redemption (Details)
9 Months Ended
Sep. 30, 2016
2024 Dollar Senior Notes [Member] |
Debt Instrument, Redemption, Period One [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
103.656% 
2024 Dollar Senior Notes [Member] |
Debt Instrument, Redemption, Period Two [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
102.438% 
2024 Dollar Senior Notes [Member] |
Debt Instrument, Redemption, Period Three [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
101.219% 
2024 Dollar Senior Notes [Member] |
Debt Instrument, Redemption, Period Four [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.00% 
2024 Euro Senior Notes [Member] |
Debt Instrument, Redemption, Period One [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
103.188% 
2024 Euro Senior Notes [Member] |
Debt Instrument, Redemption, Period Two [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
102.125% 
2024 Euro Senior Notes [Member] |
Debt Instrument, Redemption, Period Three [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
101.063% 
2024 Euro Senior Notes [Member] |
Debt Instrument, Redemption, Period Four [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.00% 
2025 Euro Senior Notes [Member] |
Debt Instrument, Redemption, Period One [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
102.813% 
2025 Euro Senior Notes [Member] |
Debt Instrument, Redemption, Period Two [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
101.875% 
2025 Euro Senior Notes [Member] |
Debt Instrument, Redemption, Period Three [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.938% 
2025 Euro Senior Notes [Member] |
Debt Instrument, Redemption, Period Four [Member]
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price, percentage
100.00% 
Borrowings - Schedule of Maturities of Long-term Debt (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Debt Disclosure [Abstract]
 
Remainder of 2016
$ 14.5 
2017
29.7 
2018
28.4 
2019
27.9 
2020
2,046.0 
Thereafter
1,380.8 
Long-term debt
$ 3,527.3 
Fair Value Accounting (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale securities
$ 4.6 
$ 4.2 
2024 Dollar Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
508.8 
 
2024 Euro Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
385.2 
 
2025 Euro Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
497.2 
 
2021 Dollar Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
 
787.5 
2021 Euro Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
 
285.4 
New Dollar Term Loan [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
1,939.7 
2,024.6 
New Euro Term Loan [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term debt, fair value
$ 212.3 
$ 427.5 
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
Sep. 30, 2016
Dec. 31, 2015
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
$ 0.3 
$ 0.3 
Derivative liability
0.3 
0 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0.3 
0.3 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
0.3 
0 
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0 
0.4 
Derivative liability
2.8 
1.8 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset
0 
0.4 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Accrued Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
2.8 
0 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Other Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability
$ 0 
$ 1.8 
Derivative Financial Instruments - Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (Interest Rate Contract [Member], Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion)
$ (1.7)
$ 3.5 
$ 0 
$ 8.0 
Interest Expense [Member]
 
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion)
1.7 
1.7 
4.9 
4.9 
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)
$ (2.0)
$ 1.0 
$ 1.3 
$ 2.4 
Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
(Gain) loss on non-derivative instruments, net
$ 0.4 
$ (4.3)
$ 4.4 
$ (6.3)
Other Nonoperating Income (Expense) [Member] |
Foreign Exchange Contract [Member]
 
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
(Gain) loss on non-derivative instruments, net
0.4 
(4.4)
4.4 
(6.3)
Interest Expense [Member] |
Interest Rate Cap [Member]
 
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
(Gain) loss on non-derivative instruments, net
$ 0 
$ 0.1 
$ 0 
$ 0 
Derivative Financial Instruments - Additional Information (Details)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2013
interest_rate_swap
Dec. 31, 2013
Euro Term Loan Due 2020 [Member]
EUR (€)
Sep. 30, 2016
Interest Rate Swap [Member]
Dec. 31, 2013
Interest Rate Swap [Member]
USD ($)
Dec. 31, 2013
Interest Rate Cap [Member]
Euro Term Loan Due 2020 [Member]
USD ($)
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Number of interest rate swaps
5 
 
 
 
 
Derivative, notional amount
 
€ 300.0 
 
$ 1,173.0 
 
Derivative, maturity date
 
 
Sep. 29, 2017 
 
 
Derivative, cap interest rate
 
1.50% 
 
 
 
Derivative instrument, premium
 
 
 
 
$ 3.1 
Segments - Reconciliation of Revenue from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Segment
market
Sep. 30, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Number of operating segments
 
 
2 
 
Number of end-markets served
 
 
4 
 
Net sales
$ 1,023.4 
$ 1,000.3 
$ 3,044.1 
$ 3,083.6 
Performance Coatings [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net sales
619.3 
600.6 
1,794.4 
1,796.6 
Performance Coatings [Member] |
Refinish [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net sales
434.5 
426.9 
1,262.0 
1,280.2 
Performance Coatings [Member] |
Industrial [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net sales
184.8 
173.7 
532.4 
516.4 
Transportation Coatings [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net sales
404.1 
399.7 
1,249.7 
1,287.0 
Transportation Coatings [Member] |
Light Vehicle [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net sales
321.1 
303.7 
994.9 
984.1 
Transportation Coatings [Member] |
Commercial Vehicle [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net sales
$ 83.0 
$ 96.0 
$ 254.8 
$ 302.9 
Segments - Schedule of Segment Reporting Information, by Segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 1,023.4 
$ 1,000.3 
$ 3,044.1 
$ 3,083.6 
Equity in earnings (losses) in unconsolidated affiliates
(0.3)
0.1 
0 
0.9 
Adjusted EBITDA
233.2 
216.9 
680.6 
654.4 
Investment in unconsolidated affiliates
14.8 
12.3 
14.8 
12.3 
Performance Coatings [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
619.3 
600.6 
1,794.4 
1,796.6 
Equity in earnings (losses) in unconsolidated affiliates
(0.4)
0.1 
(0.2)
0.4 
Adjusted EBITDA
148.5 
139.0 
415.9 
408.2 
Investment in unconsolidated affiliates
3.3 
5.5 
3.3 
5.5 
Transportation Coatings [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
404.1 
399.7 
1,249.7 
1,287.0 
Equity in earnings (losses) in unconsolidated affiliates
0.1 
0 
0.2 
0.5 
Adjusted EBITDA
84.7 
77.9 
264.7 
246.2 
Investment in unconsolidated affiliates
$ 11.5 
$ 6.8 
$ 11.5 
$ 6.8 
Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Income (loss) before income taxes
$ (10.1)
$ 54.2 
$ 105.5 
$ 107.3 
Interest expense, net
42.9 
50.8 
140.8 
150.0 
Depreciation and amortization
81.2 
75.4 
235.8 
225.5 
EBITDA
114.0 
180.4 
482.1 
482.8 
Debt extinguishment and refinancing related costs
81.9 
0 
84.2 
0 
Foreign exchange remeasurement losses (gains)
4.5 
23.7 
30.0 
90.2 
Long-term employee benefit plan adjustments
0.8 
(0.5)
2.1 
(0.1)
Termination benefits and other employee related costs
16.3 
0.8 
25.2 
19.3 
Consulting and advisory fees
2.7 
7.2 
8.3 
17.1 
Offering and transactional costs
3.0 
1.4 
4.4 
(2.3)
Stock-based compensation
10.0 
7.9 
31.6 
22.1 
Other adjustments
1.5 
(3.7)
5.2 
(0.9)
Dividends paid to noncontrolling interests
(1.5)
(0.3)
(3.0)
(4.4)
Impairment of real estate investment
0 
0 
10.5 
30.6 
Adjusted EBITDA
233.2 
216.9 
680.6 
654.4 
Debt extinguishment and refinancing related costs
81.9 
0 
84.2 
0 
Equity method investments, remeasurement gain
 
 
 
5.4 
Subsidiaries [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Impairment of real estate investment
 
 
10.5 
30.6 
Foreign exchange remeasurement gain (loss)
1.2 
0.6 
23.9 
52.6 
Revolving Credit Facility [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Debt extinguishment and refinancing related costs
2.3 
 
2.3 
 
2013 Plan [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Accelerated compensation cost
 
 
 
8.2 
Term Loans [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Debt extinguishment and refinancing related costs
4.3 
 
6.6 
 
Senior Notes [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Debt extinguishment and refinancing related costs
18.6 
 
18.6 
 
Refinancing costs
$ 56.7 
 
$ 56.7 
 
Shareholders' Equity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Total stockholders’ equity, beginning balance
 
 
$ 1,141.2 
$ 1,112.0 
Net income
(9.5)
36.4 
71.2 
58.8 
Other comprehensive income, net of tax
17.0 
(67.9)
17.2 
(154.9)
Exercise of stock options and associated tax benefits
 
 
21.3 
66.4 
Recognition of stock-based compensation
 
 
31.6 
22.1 
Noncontrolling interests of acquired subsidiaries
 
 
51.3 
4.3 
Dividends declared to noncontrolling interests
 
 
(3.0)
(4.4)
Total stockholders’ equity, ending balance
1,330.8 
1,104.3 
1,330.8 
1,104.3 
Parent [Member]
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Total stockholders’ equity, beginning balance
 
 
1,073.7 
1,044.7 
Net income
 
 
67.5 
55.1 
Other comprehensive income, net of tax
 
 
16.4 
(152.6)
Exercise of stock options and associated tax benefits
 
 
21.3 
66.4 
Recognition of stock-based compensation
 
 
31.6 
22.1 
Noncontrolling interests of acquired subsidiaries
 
 
0 
0 
Dividends declared to noncontrolling interests
 
 
0 
0 
Total stockholders’ equity, ending balance
1,210.5 
1,035.7 
1,210.5 
1,035.7 
Noncontrolling Interest [Member]
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Total stockholders’ equity, beginning balance
 
 
67.5 
67.3 
Net income
 
 
3.7 
3.7 
Other comprehensive income, net of tax
 
 
0.8 
(2.3)
Exercise of stock options and associated tax benefits
 
 
0 
0 
Recognition of stock-based compensation
 
 
0 
0 
Noncontrolling interests of acquired subsidiaries
 
 
51.3 
4.3 
Dividends declared to noncontrolling interests
 
 
(3.0)
(4.4)
Total stockholders’ equity, ending balance
$ 120.3 
$ 68.6 
$ 120.3 
$ 68.6 
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance
 
 
$ (269.3)
 
Other comprehensive income (loss), net of tax
17.0 
(67.9)
17.2 
(154.9)
Accumulated other comprehensive income (loss), ending balance
(252.9)
 
(252.9)
 
Unrealized Currency Translation Adjustments [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance
 
 
(232.8)
(72.1)
Current year deferrals to AOCI
 
 
15.9 
(144.4)
Reclassifications from AOCI to Net income
 
 
0 
0 
Other comprehensive income (loss), net of tax
 
 
15.9 
(144.4)
Accumulated other comprehensive income (loss), ending balance
(216.9)
(216.5)
(216.9)
(216.5)
Pension and Other Long-term Employee Benefit Adjustments [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance
 
 
(33.4)
(31.2)
Current year deferrals to AOCI
 
 
0 
(1.6)
Reclassifications from AOCI to Net income
 
 
0.2 
(1.3)
Other comprehensive income (loss), net of tax
 
 
0.2 
(2.9)
Accumulated other comprehensive income (loss), ending balance
(33.2)
(34.1)
(33.2)
(34.1)
Unrealized Gain (Loss) on Securities [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance
 
 
0.1 
(0.2)
Current year deferrals to AOCI
 
 
0.3 
0 
Reclassifications from AOCI to Net income
 
 
0 
0 
Other comprehensive income (loss), net of tax
 
 
0.3 
0 
Accumulated other comprehensive income (loss), ending balance
0.4 
(0.2)
0.4 
(0.2)
Unrealized Gain (Losses) on Derivatives [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance
 
 
(3.2)
0.2 
Current year deferrals to AOCI
 
 
(3.1)
(2.1)
Reclassifications from AOCI to Net income
 
 
3.1 
(3.2)
Other comprehensive income (loss), net of tax
 
 
0 
(5.3)
Accumulated other comprehensive income (loss), ending balance
(3.2)
(5.1)
(3.2)
(5.1)
Accumulated Other Comprehensive Income (loss) [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance
 
 
(269.3)
(103.3)
Current year deferrals to AOCI
 
 
13.1 
(148.1)
Reclassifications from AOCI to Net income
 
 
3.3 
(4.5)
Other comprehensive income (loss), net of tax
 
 
16.4 
(152.6)
Accumulated other comprehensive income (loss), ending balance
$ (252.9)
$ (255.9)
$ (252.9)
$ (255.9)
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Equity [Abstract]
 
 
Pension and other postretirement benefit plans, tax benefit (expense)
$ 0 
$ (1.8)
Cumulative pension and other postretirement benefit plans, tax expense (benefits)
13.4 
15.2 
Unrealized gain (loss) on derivatives, income tax expense (benefit)
0 
2.8 
Cumulative unrealized gain (loss) on derivatives, income tax expense (benefit)
$ 1.9 
$ 2.6 
Venezuela (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Jun. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Jun. 30, 2016
Dec. 31, 2015
Venezuela [Line Items]
 
 
 
 
 
 
 
Impairment of real estate investment
$ 0 
$ 0 
 
$ 10.5 
$ 30.6 
 
 
Assets
6,142.5 
 
 
6,142.5 
 
 
5,854.2 
Liabilities
4,811.7 
 
 
4,811.7 
 
 
4,713.0 
Net sales
1,023.4 
1,000.3 
 
3,044.1 
3,083.6 
 
 
Income from operations
120.2 
123.9 
 
374.5 
368.7 
 
 
Subsidiaries [Member]
 
 
 
 
 
 
 
Venezuela [Line Items]
 
 
 
 
 
 
 
Foreign exchange remeasurement gain (loss)
1.2 
0.6 
 
23.9 
52.6 
 
 
Loss on currency devaluation
 
 
53.2 
 
 
 
 
Real estate investment property, net
 
 
52.6 
 
 
21.5 
 
Impairment of real estate investment
 
 
 
10.5 
30.6 
 
 
Assets
142.8 
 
 
142.8 
 
 
152.9 
Liabilities
51.8 
 
 
51.8 
 
 
42.2 
Percent of consolidated assets represented
3.00% 
 
 
3.00% 
 
 
3.00% 
Non-monetary assets, net
93.5 
 
 
93.5 
 
 
112.4 
Net sales
19.4 
15.7 
 
48.6 
110.8 
 
 
Percent of consolidated net sales represented
2.00% 
5.00% 
 
2.00% 
5.00% 
 
 
Income from operations
11.1 
0.9 
 
24.3 
53.5 
 
 
Percent of consolidated operating income (loss) represented
10.00% 
15.00% 
 
10.00% 
15.00% 
 
 
Subsidiary of Common Parent [Member] |
Subsidiaries [Member]
 
 
 
 
 
 
 
Venezuela [Line Items]
 
 
 
 
 
 
 
Liabilities
$ 32.1 
 
 
$ 32.1 
 
 
$ 25.9 
Subsequent Events (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 1 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Apr. 30, 2016
New Dollar Term Loan [Member]
Oct. 31, 2016
New Dollar Term Loan [Member]
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
Repayments of debt
 
 
 
 
$ 100.0 
$ 150.0 
Debt extinguishment and refinancing related costs
$ 81.9 
$ 0 
$ 84.2 
$ 0 
 
$ 3.0