Long-term Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2015

The following table presents pension expense allocated by DuPont to DPC for DuPont’s significant plans in which DPC participated.



		Predecessor
Plan Name	EIN/Pension Number	January 1, 2013 through January 31, 2013
DuPont Pension and Retirement Plan	51-0014090/001	$	4.2
All Other Plans		$	0.7

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The following table sets forth the changes to the projected benefit obligations ("PBO") and plan assets for the Successor years ended December 31, 2015 and 2014 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2015 and 2014 for the Company’s defined benefit pension and other long-term benefit plans:



	Defined Benefits						Other Long-Term Employee Benefits
	Successor						Successor
	Year Ended December 31,						Year Ended December 31,
Obligations and Funded Status	2015			2014			2015			2014
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	613.1		$	603.0		$	0.1		$	4.6
Service cost	12.0			15.4			—			0.1
Interest cost	16.9			22.9			—			0.1
Participant contributions	0.9			1.0			—			—
Actuarial losses (gains)—net	(12.0		)	85.8			—			1.1
Plan curtailments and settlements	(4.7		)	(16.3		)	(0.1		)	—
Benefits paid	(27.4		)	(30.1		)	—			—
Amendments	2.7			(4.3		)	—			(5.7		)
Currency translation adjustment	(59.8		)	(64.3		)	—			(0.1		)
Projected benefit obligation at end of year	541.7			613.1			—			0.1
Change in plan assets:
Fair value of plan assets at beginning of year	294.5			281.3			—			—
Actual return on plan assets	6.0			26.5			—			—
Employer contributions	31.1			40.9			0.1			—
Participant contributions	0.9			1.0			—			—
Benefits paid	(27.4		)	(30.1		)	—			—
Settlements	(4.7		)	(2.7		)	(0.1		)	—
Currency translation adjustment	(22.0		)	(22.4		)	—			—
Fair value of plan assets at end of year	278.4			294.5			—			—
Funded status, net	$	(263.3	)	$	(318.6	)	$	—		$	(0.1	)
Amounts recognized in the consolidated balance sheets consist of:
Other assets	$	0.2		$	0.1		$	—		$	—
Other accrued liabilities	(11.2		)	(12.4		)	—			—
Accrued pension and other long-term employee benefits	(252.3		)	(306.3		)	—			(0.1		)
Net amount recognized	$	(263.3	)	$	(318.6	)	$	—		$	(0.1	)

Schedule of Accumulated and Projected Benefit Obligations

The following table reflects the ABO for all defined benefit pension plans as of December 31, 2015 and 2014. Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets.



	Successor
	Year Ended December 31,
	2015		2014
ABO	$	500.1	$	559.4
Plans with PBO in excess of plan assets:
PBO	$	537.1	$	606.2
ABO	$	495.7	$	553.2
Fair value plan assets	$	273.7	$	287.5
Plans with ABO in excess of plan assets:
PBO	$	532.0	$	602.0
ABO	$	492.7	$	550.9
Fair value plan assets	$	270.3	$	285.1

Schedule of Net Periodic Benefit Cost Not yet Recognized

The pre-tax amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss include the following:



Defined Benefits:	Successor
	Year Ended December 31,
	2015			2014
Accumulated net actuarial losses	$	(48.3	)	$	(52.6	)
Accumulated prior service credit	1.5			4.3
Total	$	(46.8	)	$	(48.3	)



Other Long-Term Employee Benefits:	Successor
	Year Ended December 31,
	2015		2014
Accumulated net actuarial losses	$	—	$	(0.4	)
Accumulated prior service credit	—		4.1
Total	$	—	$	3.7

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The estimated pre-tax amounts that are expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2016 for the defined benefit plans and other long-term employee benefit plans is as follows:



	2016
	Defined Benefits			Other Long-Term Employee Benefits
Amortization of net actuarial losses	$	(0.4	)	$	—
Amortization of prior service credit	0.1			—
Total	$	(0.3	)	$	—

Schedule of Net Benefit Costs

The following table sets forth the pre-tax components of net periodic benefit costs for the Successor years ended December 31, 2015, 2014, and 2013 and the Predecessor period from January 1, 2013 through January 31, 2013.



	Pension Benefits
	Successor									Predecessor
	Year Ended December 31,									Period from January 1, 2013 through January 31,
	2015			2014			2013			2013
Components of net periodic benefit cost and amounts recognized in other comprehensive (income) loss:
Net periodic benefit cost:
Service cost	$	12.0		$	15.4		$	17.0		$	1.6
Interest cost	16.9			22.9			21.2			1.8
Expected return on plan assets	(14.6		)	(14.8		)	(11.9		)	(1.9		)
Amortization of actuarial (gain) loss, net	0.4			(0.3		)	—			1.1
Amortization of prior service credit	(0.1		)	—			—			—
Curtailment gain	—			(7.3		)	—			—
Settlement loss	0.5			0.1			—			—
Net periodic benefit cost	15.1			16.0			26.3			2.6
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net actuarial (gain) loss, net	(3.4		)	60.6			(10.6		)	—
Amortization of actuarial gain (loss), net	(0.4		)	0.3			—			(1.1		)
Prior service (credit) cost	2.7			(4.3		)	(0.4		)	—
Amortization of prior service credit	0.1			—			—			—
Curtailment gain	—			7.3			—			—
Settlement loss	(0.5		)	(0.1		)	—			—
Other adjustments	—			(4.9		)	0.6			—
Total (gain) loss recognized in other comprehensive income	(1.5		)	58.9			(10.4		)	(1.1		)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	13.6		$	74.9		$	15.9		$	1.5



	Other Long-Term Employee Benefits
	Successor									Predecessor
	Year Ended December 31,									Period from January 1, 2013 through January 31,
	2015			2014			2013			2013
Components of net periodic benefit (gain) cost and amounts recognized in other comprehensive (income) loss:
Net periodic benefit (gain) cost:
Service cost	$	—		$	0.1		$	0.2		$	—
Interest cost	—			0.1			0.2			—
Amortization of actuarial loss, net	—			0.1			—			—
Amortization of prior service credit	(3.7		)	(1.4		)	—			—
Settlement loss	0.3			—			—			—
Net periodic benefit (gain) cost	(3.4		)	(1.1		)	0.4			—
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net actuarial (gain) loss	—			(4.6		)	(0.7		)	—
Amortization of actuarial gain (loss)	—			(0.1		)	—			—
Prior service benefit	—			—			—			—
Amortization of prior service credit	3.7			1.4			—			—
Settlement loss	(0.3		)	—			—			—
Other adjustments	0.3			—			0.1			—
Total (gain) loss recognized in other comprehensive income	3.7			(3.3		)	(0.6		)	—
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	0.3		$	(4.4	)	$	(0.2	)	$	—

Schedule of Assumptions Used

We used the following assumptions in determining the benefit obligations and net periodic benefit cost:



	Successor
	2015		2014		2013
Pension Benefits
Weighted-average assumptions:
Discount rate to determine benefit obligation	3.05	%	3.23	%	4.11	%
Discount rate to determine net cost	3.23	%	4.11	%	4.15	%
Rate of future compensation increases to determine benefit obligation	3.03	%	3.57	%	3.52	%
Rate of future compensation increases to determine net cost	3.57	%	3.52	%	3.69	%
Rate of return on plan assets to determine net cost	5.21	%	5.23	%	5.22	%



	Successor
	2015		2014		2013
Other Long-Term Employee Benefits
Weighted-average assumptions:
Discount rate to determine benefit obligation	—	%	1.50	%	4.80	%
Discount rate to determine net cost	1.50	%	4.80	%	4.20	%
Rate of future compensation increases to determine benefit obligation	—		—		—	%
Rate of future compensation increases to determine net cost	—		—		—	%

Schedule of Expected Benefit Payments

The following reflects the total benefit payments expected to be paid for defined benefits:



Year ended December 31,	Benefits
2016	$	28.3
2017	$	25.5
2018	$	26.8
2019	$	30.0
2020	$	26.9
2021—2025	$	166.1

There are no future benefit payments expected to be paid for other long-term employee benefits as this plan was effectively settled at December 31, 2015.

Schedule of Allocation of Plan Assets

The table below summarizes the weighted average actual and target pension plan asset allocations at December 31 for all funded Axalta defined benefit plans.



Asset Category	2015	2014	Target Allocation
Equity securities	30-35%	35-40%	30-35%
Debt securities	35-40%	35-40%	35-40%
Real estate	0-5%	0-1%	0-5%
Other	20-25%	20-25%	20-25%

The table below presents the fair values of the defined benefit pension plan assets by level within the fair value hierarchy, as described in Note 3, at December 31, 2015 and 2014, respectively.



	Fair value measurements at December 31, 2015
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash and cash equivalents	$	2.8	$	2.8	$	—	$	—
U.S. equity securities	23.6		23.6		—		—
Non-U.S. equity securities	70.3		69.8		0.4		0.1
Debt—government issued	64.8		53.0		11.8		—
Debt—corporate issued	44.4		37.7		4.5		2.2
Hedge Funds	0.2		0.2		—		—
Private market securities	63.8		0.4		0.1		63.3
Real estate investments	8.5		—		—		8.5
Total	$	278.4	$	187.5	$	16.8	$	74.1



	Fair value measurements at December 31, 2014
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash and cash equivalents	$	4.4	$	4.4	$	—	$	—
U.S. equity securities	16.1		16.1		—		—
Non-U.S. equity securities	79.2		78.7		0.4		0.1
Debt—government issued	36.9		36.3		0.6		—
Debt—corporate issued	55.3		53.0		—		2.3
Hedge Funds	0.2		0.1		0.1		—
Private market securities	63.2		0.1		0.1		63.0
Real estate investments	0.4		—		—		0.4
	255.7		$	188.7	$	1.2	$	65.8
Pension trust receivables	38.8
Total	$	294.5

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block]

The table below present a roll forward of activity for these assets for the years ended December 31, 2015 and 2014.



	Level 3 assets
	Total			Private market securities			Debt and Equity			Real estate investments
Ending balance at December 31, 2013	$	59.6		$	59.3		$	—		$	0.3
Realized (loss)	—			—			—			—
Change in unrealized gain	0.2			—			—			0.2
Purchases, sales, issues and settlements	6.0			3.7			2.4			(0.1		)
Transfers in/(out) of Level 3	—			—			—			—
Ending balance at December 31, 2014	$	65.8		$	63.0		$	2.4		$	0.4
Realized (loss)	—			—			—			—
Change in unrealized gain	(5.2		)	(5.2		)	(0.1		)	0.1
Purchases, sales, issues and settlements	13.5			5.5			—			8.0
Transfers in/(out) of Level 3	—			—			—			—
Ending balance at December 31, 2015	$	74.1		$	63.3		$	2.3		$	8.5