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Segments (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table presents relevant information of our reportable segments.

						Three Months Ended June 30,												Six Months Ended June 30,
						2021						2020						2021						2020
Net sales (1):
Refinish						$	463.1					$	261.9					$	862.1					$	629.7
Industrial						342.7						220.2						651.0						500.1
Total Net sales Performance Coatings						805.8						482.1						1,513.1						1,129.8
Light Vehicle						243.9						126.3						522.8						386.4
Commercial Vehicle						77.1						44.3						154.5						120.0
Total Net sales Mobility Coatings						321.0						170.6						677.3						506.4
Total Net sales						$	1,126.8					$	652.7					$	2,190.4					$	1,636.2

(1)The Company has no intercompany sales between segments.

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 June 30,												Six Months Ended June 30,
						2021						2020						2021						2020
Segment Adjusted EBIT (1):
Performance Coatings						$	139.7					$	1.5					$	256.9					$	80.9
Mobility Coatings						5.7						(39.3)						44.9						(13.5)
Total (2)						145.4						(37.8)						301.8						67.4
Interest expense, net						33.4						36.1						66.9						72.6
Debt extinguishment and refinancing related costs (a)						0.2						—						0.2						2.4
Termination benefits and other employee related costs (b)						22.7						15.2						25.5						34.7
Strategic review and retention costs (c)						2.2						6.7						7.6						18.2
Offering and transactional costs (d)						1.4						0.1						1.6						0.2
Impairment charges(e)						—						2.7						—						3.2
Pension special events (f)						—						(0.6)						—						(1.8)
Accelerated depreciation (g)						0.6						0.4						1.2						8.5
Indemnity income (h)						(0.1)						—						(0.1)						—
Operational matter (i)						(71.8)						—						22.6						—
Brazil indirect tax (j)						(8.3)						—						(8.3)						—
Income (loss) before income taxes						$	165.1					$	(98.4)					$	184.6					$	(70.6)

(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 as there are additional adjustments that are not allocated to the segments.
(a)			Represents expenses and associated changes to estimates related to the prepayment, 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 primarily associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance.
(c)			Represents costs for legal, tax and other advisory fees pertaining to our review of strategic alternatives that was concluded in March 2020, as well as retention awards for certain employees which will be earned over a period of 18-24 months, ending September 2021. 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 impairment charges, which are not considered indicative of our ongoing performance.
(f)			Represents certain defined benefit pension costs associated with special events, including pension curtailments, settlements and special termination benefits, which we do not consider indicative of our ongoing operating performance.
(g)			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.
(h)			Represents indemnity income associated with acquisitions, which we do not consider indicative of our ongoing operating performance.
(i)			Represents expenses, changes in estimates and insurance recoveries for probable liabilities related to an operational matter in the Mobility Coatings segment discussed further in Note 5, which is not indicative of our ongoing operating performance.
(j)			Represents non-recurring income related to a law change with respect to certain Brazilian indirect taxes which was recorded within other income, net.

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.

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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.

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