XML 32 R43.htm IDEA: XBRL DOCUMENT
v3.19.3

Segments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2019
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | The following table presents relevant information of our reportable segments.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Net sales (1): |  |  |  |  |  |  |  |
Refinish |  | $ | 441.5 |  |  | $ | 441.3 |  |  | $ | 1,294.3 |  |  | $ | 1,303.9 |
Industrial |  | 282.2 |  |  | 314.9 |  |  | 899.4 |  |  | 969.3 |
Total Net sales Performance Coatings |  | 723.7 |  |  | 756.2 |  |  | 2,193.7 |  |  | 2,273.2 |
Light Vehicle |  | 295.7 |  |  | 303.7 |  |  | 917.7 |  |  | 990.2 |
Commercial Vehicle |  | 87.6 |  |  | 86.1 |  |  | 272.4 |  |  | 266.8 |
Total Net sales Transportation Coatings |  | 383.3 |  |  | 389.8 |  |  | 1,190.1 |  |  | 1,257.0 |
Total Net sales |  | $ | 1,107.0 |  |  | $ | 1,146.0 |  |  | $ | 3,383.8 |  |  | $ | 3,530.2 |
Equity in earnings in unconsolidated affiliates: |  |  |  |  |  |  |  |
Performance Coatings |  | $ | 0.2 |  |  | $ | 0.2 |  |  | $ | 0.4 |  |  | $ | 0.3 |
Transportation Coatings |  | (0.1 | ) |  | — |  |  | (0.1 | ) |  | 0.3 |
Total |  | $ | 0.1 |  |  | $ | 0.2 |  |  | $ | 0.3 |  |  | $ | 0.6 |
|  |  |  |  |  | September 30, 2019 |  | December 31, 2018
Investment in unconsolidated affiliates: |  |  |  |  |  |  |  |
Performance Coatings |  |  |  |  |  | $ | 2.3 |  |  | $ | 2.7 |
Transportation Coatings |  |  |  |  |  | 12.5 |  |  | 12.7 |
Total |  |  |  |  |  | $ | 14.8 |  |  | $ | 15.4 |
(1) | The Company has no intercompany sales between segments.
(2) | Net sales by segment for the three and nine months ended September 30, 2018 were recast to include amounts previously classified as other revenue. See Note 1 for further information on the reclassification.
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles our segment operating performance to income before income taxes for the periods presented:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Segment Adjusted EBIT (1): |  |  |  |  |  |  |  |
Performance Coatings |  | $ | 124.9 |  |  | $ | 104.1 |  |  | $ | 331.1 |  |  | $ | 289.0 |
Transportation Coatings |  | 37.2 |  |  | 25.6 |  |  | 111.8 |  |  | 108.9 |
Total (2) |  | 162.1 |  |  | 129.7 |  |  | 442.9 |  |  | 397.9 |
Interest expense, net |  | 40.2 |  |  | 39.8 |  |  | 122.5 |  |  | 118.5 |
Debt extinguishment and refinancing related costs (a) |  | — |  |  | — |  |  | 0.2 |  |  | 8.4 |
Termination benefits and other employee related costs (b) |  | 29.2 |  |  | 82.4 |  |  | 33.3 |  |  | 80.2 |
Consulting and advisory (c) |  | 3.0 |  |  | — |  |  | 3.8 |  |  | — |
Offering and transactional costs (d) |  | 0.1 |  |  | 0.8 |  |  | 0.9 |  |  | 0.9 |
(Gain) loss on divestiture (e) |  | (0.5 | ) |  | — |  |  | 3.4 |  |  | — |
Accelerated depreciation (f) |  | 5.4 |  |  | 4.2 |  |  | 18.2 |  |  | 4.2 |
Indemnity (income) losses (g) |  | — |  |  | — |  |  | (0.2 | ) |  | 0.9 |
Change in fair value of equity investments (h) |  | — |  |  | — |  |  | — |  |  | 0.4 |
Income before income taxes |  | $ | 84.7 |  |  | $ | 2.5 |  |  | $ | 260.8 |  |  | $ | 184.4 |
(1) | The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBIT 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 Adjusted EBIT adjusted for the select items referred to above.
(2) | Does not represent Axalta’s Adjusted EBIT referenced elsewhere by the Company.
(a) | Represents expenses associated with the restructuring and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.
(b) | Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance.
(c) | Represents legal and advisory fees pertaining to our previously announced comprehensive review of strategic alternatives. These amounts are not considered indicative of our ongoing performance.
(d) | Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance.
(e) | Represents the impacts recognized on the sale of our interest in a joint venture business, which is not considered indicative of our ongoing operating performance.
(f) | Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance.
(g) | Represents indemnity (income) losses associated with the acquisition by Axalta of the DuPont Performance Coatings business, which we do not consider indicative of our ongoing operating performance.
(h) | Represents mark to market impacts of our equity investments, which we do not consider to be indicative of our ongoing operating performance.

X
- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfOperatingProfitLossFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration