10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-36733

AXALTA COATING SYSTEMS LTD.

(Exact name of registrant as specified in its charter)

Bermuda	2851	98-1073028
(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(I.R.S. Employer Identification No.)

Two Commerce Square

2001 Market Street

Suite 3600

Philadelphia, Pennsylvania 19103

(855) 547-1461

(Address, including zip code, and telephone number, including area code, of the registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Common Shares, $1.00 par value	New York Stock Exchange
(title of class)	(Exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ý Non-accelerated filer ¨ Accelerated filer ¨ Smaller reporting company ¨ Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

As of October 20, 2017, there were 243,630,429 shares of the registrant’s common shares outstanding.

Table of Contents

PART I		Financial Information
	ITEM 1.	Financial Statements (Unaudited)	3
		Condensed Consolidated Statements of Operations	3
		Condensed Consolidated Statements of Comprehensive Income	4
		Condensed Consolidated Balance Sheets	5
		Condensed Consolidated Statement of Cash Flows	6
		Notes to Condensed Consolidated Financial Statements	7
	ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
	ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	50
	ITEM 4.	Controls and Procedures	50
PART II		Other Information
	ITEM 1.	Legal Proceedings	51
	ITEM 1A.	Risk Factors	51
	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
	ITEM 3.	Defaults Upon Senior Securities	51
	ITEM 4.	Mine Safety Disclosures	51
	ITEM 5.	Other Information	51
	ITEM 6.	Exhibits	52
		Signatures	53

2

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

AXALTA COATING SYSTEMS LTD.

Condensed Consolidated Statements of Operations (Unaudited)

(In millions, except per share data)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017		2016
Net sales	$	1,091.8	$	1,020.6		$	3,188.1	$	3,041.4
Other revenue	4.5		5.7			16.5		18.7
Total revenue	1,096.3		1,026.3			3,204.6		3,060.1
Cost of goods sold	702.5		630.4			2,033.6		1,885.8
Selling, general and administrative expenses	246.4		242.3			717.8		699.1
Venezuela deconsolidation charge	—		—			70.9		—
Research and development expenses	16.6		14.9			48.6		41.6
Amortization of acquired intangibles	26.8		21.3			72.3		61.8
Income from operations	104.0		117.4			261.4		371.8
Interest expense, net	37.7		42.9			109.1		140.8
Other expense, net	7.9		87.4			27.5		128.2
Income (loss) before income taxes	58.4		(12.9		)	124.8		102.8
Provision (benefit) for income taxes	2.1		(7.5		)	21.5		23.1
Net income (loss)	56.3		(5.4		)	103.3		79.7
Less: Net income attributable to noncontrolling interests	1.4		1.2			5.1		3.7
Net income (loss) attributable to controlling interests	$	54.9	$	(6.6	)	$	98.2	$	76.0
Basic net income (loss) per share	$	0.23	$	(0.03	)	$	0.41	$	0.32
Diluted net income (loss) per share	$	0.22	$	(0.03	)	$	0.40	$	0.31
Basic weighted average shares outstanding	240.7		238.5			240.5		237.8
Diluted weighted average shares outstanding	245.8		238.5			246.2		244.2

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

AXALTA COATING SYSTEMS LTD.

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In millions)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net income (loss)	$	56.3		$	(5.4	)	$	103.3		$	79.7
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	21.5			14.6			89.3			16.7
Unrealized gain (loss) on securities	0.2			0.6			(0.1		)	0.3
Unrealized gain (loss) on derivatives	0.2			1.7			(1.1		)	—
Unrealized gain (loss) on pension plan obligations	(0.3		)	0.1			9.0			0.2
Other comprehensive income, before tax	21.6			17.0			97.1			17.2
Income tax (benefit) related to items of other comprehensive income	0.6			—			(2.0		)	—
Other comprehensive income, net of tax	22.2			17.0			95.1			17.2
Comprehensive income	78.5			11.6			198.4			96.9
Less: Comprehensive income attributable to noncontrolling interests	1.4			2.2			6.1			4.5
Comprehensive income attributable to controlling interests	$	77.1		$	9.4		$	192.3		$	92.4

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

AXALTA COATING SYSTEMS LTD.

Condensed Consolidated Balance Sheets (Unaudited)

(In millions, except per share data)

	September 30, 2017			December 31, 2016
Assets
Current assets:
Cash and cash equivalents	$	588.9		$	535.4
Restricted cash	3.1			2.7
Accounts and notes receivable, net	889.0			801.9
Inventories	624.4			529.7
Prepaid expenses and other	68.7			50.3
Total current assets	2,174.1			1,920.0
Property, plant and equipment, net	1,386.1			1,315.7
Goodwill	1,258.3			964.1
Identifiable intangibles, net	1,445.9			1,130.3
Other assets	548.2			536.1
Total assets	$	6,812.6		$	5,866.2
Liabilities, Shareholders’ Equity
Current liabilities:
Accounts payable	$	545.1		$	474.2
Current portion of borrowings	37.8			27.9
Other accrued liabilities	447.5			440.0
Total current liabilities	1,030.4			942.1
Long-term borrowings	3,865.2			3,236.0
Accrued pensions	288.1			249.1
Deferred income taxes	162.1			160.2
Other liabilities	32.5			32.2
Total liabilities	5,378.3			4,619.6
Commitments and contingencies (Note 6)
Shareholders’ equity
Common shares, $1.00 par, 1,000.0 shares authorized, 243.6 and 240.5 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	242.1			239.3
Capital in excess of par	1,341.9			1,294.3
Retained earnings (Accumulated deficit)	40.1			(58.1		)
Treasury shares, at cost	(58.4		)	—
Accumulated other comprehensive loss	(256.3		)	(350.4		)
Total Axalta shareholders’ equity	1,309.4			1,125.1
Noncontrolling interests	124.9			121.5
Total shareholders’ equity	1,434.3			1,246.6
Total liabilities and shareholders’ equity	$	6,812.6		$	5,866.2

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

AXALTA COATING SYSTEMS LTD.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)

	Nine Months Ended September 30,
	2017			2016
Operating activities:
Net income	$	103.3		$	79.7
Adjustment to reconcile net income to cash used for operating activities:
Depreciation and amortization	255.9			235.8
Amortization of deferred financing costs and original issue discount	6.1			14.6
Debt extinguishment and refinancing related costs	13.0			84.2
Deferred income taxes	(21.7		)	(15.0		)
Realized and unrealized foreign exchange (gains) losses, net	(1.4		)	30.6
Stock-based compensation	30.5			31.6
Asset impairments	7.6			10.5
Venezuela deconsolidation charge	70.9			—
Other non-cash, net	6.9			(10.4		)
Changes in operating assets and liabilities:
Trade accounts and notes receivable	(44.5		)	(103.8		)
Inventories	(37.6		)	0.1
Prepaid expenses and other	(79.9		)	(31.2		)
Accounts payable	34.2			14.0
Other accrued liabilities	(27.8		)	0.4
Other liabilities	(9.1		)	(9.8		)
Cash provided by operating activities	306.4			331.3
Investing activities:
Business acquisitions (net of cash acquired)	(559.3		)	(103.5		)
Purchase of property, plant and equipment	(87.2		)	(95.3		)
Reduction of cash due to Venezuela deconsolidation	(4.3		)	—
Purchase of intangibles	(0.5		)	(3.9		)
Other investing activities	4.6			(2.4		)
Cash used for investing activities	(646.7		)	(205.1		)
Financing activities:
Proceeds from long term borrowings	456.4			1,377.6
Payments on short-term borrowings	(7.0		)	(7.2		)
Payments on long-term borrowings	(12.4		)	(1,375.5		)
Financing-related costs	(9.9		)	(78.3		)
Dividends paid to noncontrolling interests	(2.7		)	(3.0		)
Purchase of treasury stock	(58.4		)	—
Proceeds from option exercises	19.9			13.8
Deferred acquisition-related consideration	(5.2		)	—
Other financing activities	—			(0.2		)
Cash provided by (used for) financing activities	380.7			(72.8		)
Increase in cash	40.4			53.4
Effect of exchange rate changes on cash	13.5			(10.0		)
Cash at beginning of period	538.1			487.7
Cash at end of period	$	592.0		$	531.1
Cash at end of period reconciliation:
Cash and cash equivalents	$	588.9		$	528.3
Restricted cash	$	3.1		$	2.8
Cash at end of period	$	592.0		$	531.1

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

(1)     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, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and nine months ended September 30, 2017 and 2016, 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, 2016. 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, 2017 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, formed at the direction of an affiliate of The Carlyle Group L.P. ("Carlyle"), 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.

Venezuela Deconsolidation

During the three months ended June 30, 2017, we deconsolidated our Venezuelan subsidiary from our consolidated financial statements and began accounting for our investment in our 100% owned Venezuelan subsidiary using the cost method of accounting. See Note 21 for additional information.

Accounting Standards - Recently Adopted

At December 31, 2016, we elected to early adopt Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows: Restricted Cash", which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. As a result, the condensed consolidated financial statements herein have been retroactively adjusted. There was no change in net cash used for investing activities for the nine months ended September 30, 2016.

At December 31, 2016, we elected to early adopt ASU 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation and resulted in retrospective changes to our previously issued condensed consolidated financial statements. The new standard resulted in the recognition of excess tax benefits in our provision for income taxes. Upon adoption, this resulted in a cumulative effect of an accounting change reclassification of $43.9 million to retained earnings (accumulated deficit) on the balance sheet as of January 1, 2016, as reflected in Note 19. It also resulted in a decrease to the tax provision and corresponding increase to net income of $6.4 million and $10.8 million for the previously reported condensed consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2016, respectively. The effect on our dilutive shares is disclosed in Note 11.

We retrospectively applied the changes in presentation to the condensed consolidated statements of cash flows and no longer classify excess tax benefits or employee taxes paid for shares withheld as financing activities, which increased net cash provided by operating activities and decreased net cash used in financing activities by $7.5 million for the nine months ended September 30, 2016.

7

Correction of Immaterial Errors to Prior Period Financial Statements

During the quarter ended June 30, 2017, the Company identified and corrected errors that affected previously-issued consolidated and condensed financial statements. Based on an analysis of Accounting Standards Codification (“ASC”) 250 - Accounting Changes and Error Corrections (“ASC 250”), Staff Accounting Bulletin 99 - Materiality (“SAB 99”) and Staff Accounting Bulletin 108 - Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company determined that these corrections were immaterial to the previously-issued financial statements. However, given the significance of the cumulative adjustments on the financial results, we have revised, and will revise annual and interim periods in future filings, our historical presentation of certain amounts in the condensed consolidated financial statements which are described further below.

Revenue Corrections

The Company recognizes revenue from the sale of products to its customers when risk of loss and ownership of the product transfers to the customer.  Ownership transfers either upon shipment of the product or when the product is delivered. In regards to Axalta’s refinish end-market, risk of loss passes upon the sale to its distribution customers.  Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions can be given to our distribution customers and certain collision repair body shops. The Company previously recorded these additional rebates and pricing concessions at the time of sale from the distributor to the collision repair body shops.  The Company has concluded those rebates and pricing concessions should have been estimated and recorded as a reduction to net sales upon the sale to our distribution customers.

The Company concluded that its accounting policy for the sale to distributors is appropriate as the sales price is fixed or determinable at the time ownership transfers to these distributors, based on the Company’s ability to make a reasonable estimate of future certain pricing or rebates concessions at the time of shipment.

The Company has corrected the errors in the timing of revenue recognition by estimating those additional rebates and pricing concessions at the time of sale to distribution customers and reducing net sales by $2.8 million ($2.3 million after tax) and $2.7 million ($2.3 million after tax) for the three and nine months ended September 30, 2016, respectively. The Company will also revise historical annual periods by reducing net sales by $4.7 million ($3.0 million after tax), $3.3 million ($2.1 million after tax), $5.1 million ($3.1 million after tax) and $4.2 million ($2.8 million after tax) for the periods ended December 31, 2016, 2015, 2014 and 2013, respectively. Diluted earnings per share was reduced by $0.01 for the three and nine months ended September 30, 2016 and the years ended December 31, 2016, 2015, 2014 and 2013, respectively. The after-tax impacts noted above had the equivalent impacts on our condensed consolidated statements of comprehensive income for the respective periods. The cumulative impact on the condensed consolidated balance sheet at December 31, 2016 resulted in increases of $22.4 million, $3.1 million, $8.3 million and $11.0 million to other accrued liabilities, goodwill, other assets and accumulated deficit, respectively, as a result of these prior period corrections. Amounts had no impact on the Company’s total cash flows from operations as reported within the historical condensed consolidated statements of cash flows.

8

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

(2)    RECENT ACCOUNTING GUIDANCE

Accounting Guidance Issued But Not Yet Adopted

In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. We are in the process of working with our actuarial specialists in assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.

In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test requiring an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified in our reporting units.

In 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. At a minimum, total assets and total liabilities will increase in the period of adoption.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. This standard was initially intended to be effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date", which delayed the previous effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We continue to progress in the quantification of the impacts that this standard will have on our consolidated financial statements and have refined certain estimates that will be used in order to calculate such impacts, although the final impact remains unknown. We will provide further detail as we progress in our quantification, as well as our determination of the transition method to be adopted. We have reviewed our sales contracts and practices as compared to the new guidance and continue to make progress in our implementation plan as well as our assessment of procedural and policy requirements related to the provisions of this standard. In addition to the expanded disclosures regarding revenue, this guidance will result in the acceleration of revenue recognition in certain arrangements primarily within our Transportation Coatings segment in which we determine effective control over inventory has transferred to the customer upon delivery as compared to consumption under historical consignment arrangements.

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 have continued to assess the potential impact of the revised guidance on our financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters.

9

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

(3)    ACQUISITIONS

Acquisition of The Valspar Corporation's North American Industrial Wood Business

On June 1, 2017, the Company completed its acquisition from The Valspar Corporation ("Valspar") of certain assets constituting its North American Industrial Wood Coatings business (the "Industrial Wood" business), for a purchase price of $420.0 million, subject to preliminary working capital adjustments of $10.5 million (the "Industrial Wood Acquisition"). The Industrial Wood Acquisition was funded through the refinancing of our Dollar Term Loans discussed further at Note 15.

The Industrial Wood business is one of the leading providers of coatings for original equipment manufacturers ("OEM") and aftermarket industrial wood markets, including building products, cabinets, flooring and furniture, in North America. The Industrial Wood Acquisition was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date.

At September 30, 2017, we have not finalized the purchase accounting related to the Industrial Wood Acquisition and these amounts represent preliminary values. The allocation of the purchase price may be modified up to one year from the date of the acquisition as more information is obtained about the fair value of assets acquired and liabilities assumed. After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.5 million, which was comprised of the following:

	June 1, 2017 (As Initially Reported)			Measurement Period Adjustments			June 1, 2017 (As Adjusted)
Accounts and notes receivable—trade	$	23.3		$	0.1		$	23.4
Inventories	24.9			(0.2		)	24.7
Prepaid expenses and other	0.2			—			0.2
Property, plant and equipment	23.0			—			23.0
Identifiable intangibles	254.2			3.9			258.1
Accounts payable	(22.4		)	0.2			(22.2		)
Other accrued liabilities	(5.1		)	(0.2		)	(5.3		)
Net assets acquired before goodwill on acquisition	298.1			3.8			301.9
Goodwill on acquisition	132.6			(4.0		)	128.6
Net assets acquired	$	430.7		$	(0.2	)	$	430.5

Goodwill was recognized as the excess of the purchase price over the net identifiable assets recognized. The goodwill is primarily attributed to our assembled workforce and the anticipated future economic benefits and is recorded within our industrial end-market in our Performance Coatings segment. The goodwill recognized at September 30, 2017 that is expected to be deductible for income tax purposes is $128.6 million.

The Company incurred and expensed acquisition-related transaction costs of the Industrial Wood Acquisition of $5.3 million, included within selling, general and administrative expense on the condensed consolidated statements of operations for the nine months ended September 30, 2017.

The fair value associated with definite-lived intangible assets was $258.1 million, comprised of $34.5 million in technology, $8.1 million in trademarks, $202.0 million in customer relationships and $13.5 million in favorable contracts. The definite-lived intangible assets will be amortized over an average term of approximately 19 years.

10

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

Supplemental Pro Forma Information

The Company's net sales and income before income taxes for the nine months ended September 30, 2017 include sales of $86.7 million in net sales and a loss of $1.7 million to income before income taxes related to the Industrial Wood business. The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016:

	For the nine months ended
(in millions, except per share data)	September 30, 2017		September 30, 2016
Net sales	$	3,289.4	$	3,205.9
Net income	$	108.8	$	78.4
Net income attributable to controlling interests	$	103.7	$	74.7
Net income per share (Basic)	$	0.43	$	0.31
Net income per share (Diluted)	$	0.42	$	0.31

The 2017 supplemental pro forma net income was adjusted to exclude $5.3 million ($3.3 million, net of pro forma income tax impact) of acquisition-related costs incurred in 2017 and $2.3 million ($1.4 million, net of pro forma income tax impact) of non-recurring expense related to the fair market value adjustment to acquisition date inventory. The unaudited pro forma condensed consolidated information does not necessarily reflect the actual results that would have occurred had the acquisition taken place on January 1, 2016, nor is it meant to be indicative of future results of operations of the combined companies under the ownership and operation of the Company.

Other Acquisitions

During the nine months ended September 30, 2017, we acquired 100% of six businesses ("2017 Acquisitions"), including the acquisition of Industrial Wood. The other five acquisitions included two North American and three European businesses which have operations in both our refinish and industrial end-markets, within our Performance Coatings segment. All of these acquisitions were accounted for as business combinations and the overall impacts to our condensed consolidated financial statements were not considered to be material, either individually or in the aggregate. The fair value associated with definite-lived intangible assets from the 2017 Acquisitions was $315.6 million, comprised of $46.8 million in technology, $18.4 million in trademarks, $234.8 million in customer relationships and $15.6 million in other intangibles primarily consisting of favorable contracts. The total fair value of consideration paid or payable on the 2017 Acquisitions was $565.0 million, including acquisition date fair value of contingent consideration of $5.7 million, respectively.

At September 30, 2017, we have not finalized the purchase accounting related to the 2017 Acquisitions and these amounts represent preliminary values. For our business acquisitions completed after September 30, 2016, including the 2017 Acquisitions, we expect to finalize our purchase accounting during the respective measurement periods, which will be no later than one year following their applicable closing dates.

(4)    GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill

The following table shows changes in the carrying amount of goodwill from December 31, 2016 to September 30, 2017 by reportable segment:

	Performance Coatings			Transportation Coatings		Total
December 31, 2016	$	889.4		$	74.7	$	964.1
Goodwill from acquisitions	204.1			—		204.1
Purchase accounting adjustments	(10.8		)	—		(10.8		)
Foreign currency translation	94.2			6.7		100.9
September 30, 2017	$	1,176.9		$	81.4	$	1,258.3

11

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

Identifiable Intangible Assets

The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:

September 30, 2017	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted average amortization periods (years)
Technology	$	494.7	$	(200.1	)	$	294.6	10.5
Trademarks - indefinite-lived	297.4		—			297.4		Indefinite
Trademarks - definite-lived	77.1		(15.9		)	61.2		14.7
Customer relationships	941.8		(164.0		)	777.8		19.0
Other	16.6		(1.7		)	14.9		4.4
Total	$	1,827.6	$	(381.7	)	$	1,445.9

December 31, 2016	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted average amortization periods (years)
Technology	$	417.1	$	(153.6	)	$	263.5	10.2
Trademarks—indefinite-lived	273.2		—			273.2		Indefinite
Trademarks—definite-lived	55.0		(11.4		)	43.6		14.8
Customer relationships	672.6		(123.3		)	549.3		18.7
Other	2.4		(1.7		)	0.7		4.6
Total	$	1,420.3	$	(290.0	)	$	1,130.3

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2017 and each of the succeeding five years is:

Remainder of 2017	$	27.9
2018	$	108.1
2019	$	107.8
2020	$	107.3
2021	$	105.4
2022	$	76.1

(5)    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, 2017, we incurred restructuring costs of $6.2 million and $7.6 million, respectively. During the three and nine months ended September 30, 2016, we incurred restructuring costs of $15.6 million and $21.2 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 the balance sheet date.

12

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2016 to September 30, 2017:

	2017 Activity
Balance at December 31, 2016	$	66.1
Expense recorded	7.6
Payments made	(24.2		)
Foreign currency impacts	6.2
Venezuela deconsolidation impact	(1.5		)
Balance at September 30, 2017	$	54.2

Restructuring charges incurred during the fourth quarter ended December 31, 2016 included actions to reduce operational costs through activities to rationalize our manufacturing footprint. The impact to earnings from accelerated depreciation related to these manufacturing assets for the nine months ended September 30, 2017 was $4.3 million. During the three and nine months ended September 30, 2017, we recorded impairment losses of $4.4 million and $7.6 million, respectively, associated with these manufacturing facilities based on market price estimates recorded within other expense, net.

(6) COMMITMENTS AND CONTINGENCIES

Leases

During the three months ended September 30, 2017, we determined that a previous build-to-suit lease arrangement was to be treated as a sale-leaseback financing. The lessor's building costs will be depreciated over an estimated useful life, consistent with our other sale-leaseback financing identified during the year ended December 31, 2016, beginning at the commencement of the rental terms, at which point such lease assets recorded in property, plant and equipment had a corresponding offset within long-term borrowings. The table below reflects the total remaining cash payments related to both transactions during the rental term as of September 30, 2017:

	Sale-leaseback obligations
Remainder of 2017	$	1.3
2018	5.4
2019	5.5
2020	5.6
2021	5.6
Thereafter	91.9
Total minimum payments	$	115.3

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 against us, or awards against DuPont for which we assumed the liabilities through the Acquisition. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time.

The potential effects, if any, on the 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.

13

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

(7)    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, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Components of net periodic benefit cost:
Net periodic benefit cost:
Service cost	$	2.2		$	2.4		$	6.4		$	7.5
Interest cost	3.3			3.7			10.0			11.5
Expected return on plan assets	(3.7		)	(3.0		)	(10.7		)	(9.6		)
Amortization of actuarial loss, net	0.3			0.1			1.1			0.2
Net periodic benefit cost	$	2.1		$	3.2		$	6.8		$	9.6

(8)    STOCK-BASED COMPENSATION

During the three and nine months ended September 30, 2017, we recognized $9.2 million and $30.5 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 $2.8 million and $9.1 million for the three and nine months ended September 30, 2017, respectively. Forfeitures are recorded in the period they occur.

During the three and nine months ended September 30, 2016, we recognized $10.0 millionand $31.6 million, respectively, in stock-based compensation expense which was allocated to cost 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.

2017 Activity

In 2017, we granted non-qualified service-based stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units to certain employees and directors. All awards were granted under the Company's 2014 Incentive Award Plan (the "2014 Plan"). A summary of stock option award activity as of and for the nine months ended September 30, 2017 is presented below.

Stock Options	Awards/Units (in millions)		Weighted- Average Exercise Price		Aggregate Intrinsic Value  (in millions)		Weighted Average Remaining Contractual Life (years)
Outstanding at January 1, 2017	9.6		$	14.40
Granted	0.9		$	29.56
Exercised	(1.9	)	$	10.76
Forfeited	(0.1	)	$	25.61
Outstanding at September 30, 2017	8.5		$	16.58
Vested and expected to vest at September 30, 2017	8.5		$	16.58	$	108.9	6.77
Exercisable at September 30, 2017	6.6		$	13.33	$	105.1	6.23

Cash received by the Company upon exercise of options for the nine months ended September 30, 2017 was $19.9 million. Tax benefits on these exercises were $12.4 million.

14

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

At September 30, 2017, there is $5.8 million of unrecognized expense relating to unvested stock options that is expected to be amortized over a weighted average period of 2.0 years.

Restricted Stock Awards and Restricted Stock Units	Awards (millions)		Weighted-Average Fair Value
Outstanding at January 1, 2017	2.3		$	29.18
Granted	0.7		$	30.21
Vested	(0.9	)	$	30.05
Forfeited	(0.1	)	$	26.77
Outstanding at September 30, 2017	2.0		$	29.27

Tax benefits on the vesting of restricted stock during the nine months ended September 30, 2017 were $9.8 million.

At September 30, 2017, there is $23.4 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 2.0 years.

Performance Stock Awards and Performance Share Units	Awards (millions)	Weighted-Average Fair Value
Outstanding at January 1, 2017	0.3	$	24.74
Granted	0.3	$	38.11
Vested	—	$	—
Forfeited	—	$	—
Outstanding at September 30, 2017	0.6	$	31.16

At September 30, 2017, there is $13.2 million of unamortized expense relating to unvested performance stock awards and performance share units that is expected to be amortized over a weighted average period of 2.1 years.

(9)    OTHER EXPENSE, NET

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Foreign exchange losses, net	$	3.5		$	4.5	$	8.3		$	30.0
Impairments of property	4.4			—		7.6			10.5
Debt extinguishment and refinancing related costs	0.6			81.9		13.0			84.2
Other miscellaneous (income) expense, net	(0.6		)	1.0		(1.4		)	3.5
Total	$	7.9		$	87.4	$	27.5		$	128.2

Our Venezuelan subsidiary contributed to the net exchange losses for all periods leading up to the deconsolidation of the entity during the three months ended June 30, 2017. These losses for the nine months ended September 30, 2017 were $1.8 million. These losses for the three and nine months ended September 30, 2016 were $1.2 million and $23.9 million, respectively.

Debt extinguishment and refinancing related costs incurred during the nine months ended September 30, 2017 include third-party fees incurred in conjunction with the refinancing of the 2023 Dollar Term Loans. Debt extinguishment and refinancing related costs incurred during the three and nine months ended September 30, 2016 include redemption premiums on our 2021 Dollar Senior Notes and 2021 Euro Senior Notes as well as the unamortized (or pro-rata unamortized) deferred financing costs and original issue discounts associated with the debt extinguishment. See Note 15 for further information surrounding these debt-related transactions.

15

(10)    INCOME TAXES

Our effective income tax rates for the nine months ended September 30, 2017 and 2016 are as follows:

	Nine Months Ended September 30,
	2017		2016
Effective Tax Rate	17.2	%	22.5	%

The lower effective tax rate for the nine months ended September 30, 2017 was primarily due to forecasted mix of earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate as compared to September 30, 2016. The pre-tax charge of $70.9 million related to the deconsolidation of our Venezuelan subsidiary for 2017, which is non-deductible, was largely offset by the prior year impact of pre-tax losses on debt extinguishment and other financing-related costs incurred in connection with the refinancing activities and voluntary prepayments where a tax benefit for a portion of the losses were not expected to be realized. These adjustments were partially offset by the favorable impact of the benefits associated with current year excess tax benefits related to stock-based compensation of $11.6 million compared to $10.8 million for the nine months ended September 30, 2017 and 2016, respectively.

The effective tax rate for the nine months ended September 30, 2017 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 current year excess tax benefits related to stock-based compensation. These adjustments were offset by the unfavorable impact of the Venezuelan deconsolidation charge, pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized, non-deductible expenses and interest and currency exchange losses.

(11)    NET INCOME (LOSS) PER COMMON SHARE

Basic net income per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the hypothetical exercise of outstanding stock options and vesting of restricted shares and performance shares. A reconciliation of our basic and diluted net income per common share is as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions, except per share data)	2017		2016(1)			2017		2016(1)
Net income (loss) to common shareholders	$	54.9	$	(6.6	)	$	98.2	$	76.0
Basic weighted average shares outstanding	240.7		238.5			240.5		237.8
Diluted weighted average shares outstanding	245.8		238.5			246.2		244.2
Net income (loss) per common share:
Basic net income (loss) per share	$	0.23	$	(0.03	)	$	0.41	$	0.32
Diluted net income (loss) per share	$	0.22	$	(0.03	)	$	0.40	$	0.31

⁽¹⁾ Net income per common share for the nine months ended September 30, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 1, which increased diluted weighted average shares outstanding by 1.8 million shares. Based on the fact that diluted weighted average shares outstanding are equal to basic weighted average shares outstanding in periods of loss, there was no impact of this adoption on diluted weighted average shares outstanding during the three months ended September 30, 2016.

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, 2017 were 1.9 million and 1.8 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, 2016 were 13.0 million and 1.4 million, respectively.

16

(12)    ACCOUNTS AND NOTES RECEIVABLE, NET

	September 30, 2017		December 31, 2016
Accounts receivable - trade, net	$	766.6	$	640.4
Notes receivable	26.6		68.7
Other	95.8		92.8
Total	$	889.0	$	801.9

Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable - trade, net are net of allowances of $16.6 million and $13.7 million at September 30, 2017 and December 31, 2016, respectively. Bad debt expense, within selling, general and administration expenses for the three and nine months ended September 30, 2017, was $0.9 million and $3.3 million, respectively, and $0.6 million and $1.7 million for the three and nine months ended September 30, 2016, respectively.

(13)    INVENTORIES

	September 30, 2017		December 31, 2016
Finished products	$	360.7	$	315.2
Semi-finished products	97.4		87.5
Raw materials and supplies	166.3		127.0
Total	$	624.4	$	529.7

Stores and supplies inventories of $21.1 million and $20.2 million at September 30, 2017 and December 31, 2016, respectively, were valued under the weighted average cost method.

(14) PROPERTY, PLANT AND EQUIPMENT, NET

Depreciation expense amounted to $43.3 million and $131.3 million for the three and nine months ended September 30, 2017, respectively, and $45.0 million and $130.6 million for the three and nine months ended September 30, 2016, respectively.

	September 30, 2017			December 31, 2016
Property, plant and equipment	$	2,147.9		$	1,933.0
Accumulated depreciation	(761.8		)	(617.3		)
Property, plant and equipment, net	$	1,386.1		$	1,315.7

17

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

(15)    BORROWINGS

Borrowings are summarized as follows:

	September 30, 2017			December 31, 2016
2024 Dollar Term Loans	$	1,995.0		$	—
2023 Dollar Term Loans	—			1,545.0
2023 Euro Term Loans	467.1			417.6
2024 Dollar Senior Notes	500.0			500.0
2024 Euro Senior Notes	394.2			349.7
2025 Euro Senior Notes	529.5			469.8
Short-term and other borrowings	67.2			39.8
Unamortized original issue discount	(9.6		)	(10.0		)
Unamortized deferred financing costs	(40.4		)	(48.0		)
	$	3,903.0		$	3,263.9
Less:
Short term borrowings	$	13.1		$	8.3
Current portion of long-term borrowings	24.7			19.6
Long-term debt	$	3,865.2		$	3,236.0

Senior Secured Credit Facilities, as amended

On February 3, 2014 (the "Second Amendment Effective Date"), Axalta Coating Systems Dutch B B.V. ("Dutch B B.V."), as "Dutch Borrower", and its indirect 100% owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. ("Axalta US Holdings"), as "U.S. Borrower", executed the second amendment to the Credit Agreement (the "Second Amendment"). The Second Amendment (i) converted all of the outstanding Dollar Term Loans ($2,282.8 million) into a new class of term loans (the "2020 Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans (€397.0 million) into a new class of term loans (the "2020 Euro Term Loans" and, together with the 2020 Dollar Term Loans, the "2020 Term Loans").

On December 15, 2016 (the "Fourth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fourth amendment to the Credit Agreement (the "Fourth Amendment"). The Fourth Amendment (i) converted all of the outstanding 2020 Dollar Term Loans ($1,775.3 million) into a new tranche of term loans issued at par with principal of $1,545.0 million (the "2023 Dollar Term Loans"), (ii) converted all of the outstanding 2020 Euro Term Loans (€199.0 million) into a new tranche of term loans issued at par with principal of €400.0 million (the "2023 Euro Term Loans" and, together with the 2023 Dollar Term Loans, the "2023 Term Loans").

On June 1, 2017 (the "Fifth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fifth amendment to the Credit Agreement (the "Fifth Amendment"). The Fifth Amendment converted all of the outstanding 2023 Dollar Term Loans ($1,541.1 million) into a new tranche of term loans with principal of $2,000.0 million (the "2024 Dollar Term Loans"), together with the 2023 Euro Term Loans, the "Current Terms Loans", and with the Revolving Credit Facility (as defined herein, the "Senior Secured Credit Facilities"). The 2024 Dollar Term Loans were issued at 99.875% of par, or a $2.5 million discount.

Interest was and is payable quarterly on both the 2023 Term Loans and Current Term Loans.

The 2024 Dollar Term Loans are subject to a floor of zero plus an applicable rate of 2.00% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 1.00% per annum for Base Rate Loans as defined in the Credit Agreement.

18

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

Prior to the Fifth Amendment, interest on the 2023 Dollar Term Loans was subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such 2023 Dollar Term Loans was 2.50% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 1.50% per annum for Base Rate Loans as defined in the Credit Agreement. The 2023 Euro Term Loans are also subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such New Euro Term Loans is 2.25% per annum for Eurocurrency Rate Loans. The 2023 Euro Term Loans may not be Base Rate Loans.

Prior to the Fourth Amendment, interest on the 2020 Dollar Term Loans was subject to a floor of 1.00%, plus an applicable rate. The applicable rate for such 2020 Dollar Term Loans was 3.00% per annum for Eurocurrency Rate Loans and 2.00% per annum for Base Rate Loans. The 2020 Euro Term Loans were also subject to a floor of 1.00%, plus an applicable rate. The applicable rate for such 2020 Euro Term Loans was 3.25% per annum for Eurocurrency Rate Loans. The 2020 Euro Term Loans were not to be Base Rate Loans. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans was subject to a further 25 basis point reduction if the Total Net Leverage Ratio was less than or equal to 4.50:1.00. During the third quarter of 2014, our Total Net Leverage Ratio was less than 4.50:1.00. Consequently, the applicable rates were changed to 2.75% for the 2020 Dollar Term Loans and 3.00% for the 2020 Euro Term Loans through the Fourth Amendment Effective Date.

Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $75.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow.

The Senior Secured Credit Facilities are secured by substantially all assets of Axalta Coating Systems Dutch A B.V. ("Dutch A B.V.") and the guarantors. The 2023 Euro Term Loans mature on February 1, 2023 and the 2024 Dollar Term Loans mature on June 1, 2024. Principal is paid quarterly on both the 2023 Euro Term Loans and the 2024 Dollar Term Loans based on 1% per annum of the original principal amount outstanding on the most recent amendment date with the unpaid balance due at maturity.

We are subject to customary negative covenants in addition to the First Lien Leverage Ratio financial covenant for purposes of determining any Excess Cash Flow mandatory payment. Further, the Senior Secured Credit Facilities, among other things, include customary restrictions (subject to certain exceptions) on the Company's ability to incur certain indebtedness, grant certain liens, make certain investments, declare or pay certain dividends, or repurchase shares of the Company's common stock. As of September 30, 2017, the Company is in compliance with all covenants under the Senior Secured Credit Facilities.

Revolving Credit Facility

On August 1, 2016 (the "Third Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the third amendment to the Credit Agreement (the "Third Amendment"). The Third Amendment impacted the revolving credit facility under the Senior Secured Credit Facilities (the "Revolving Credit Facility") by (i) extending the maturity of the Revolving Credit Facility to five years from the Third Amendment Effective Date, or August 1, 2021, provided that such date will be accelerated to the date that is 91 days prior to the maturity of the term loans borrowed under the Credit Agreement if the maturity of such term loans precedes the maturity of the Revolving Credit Facility, (ii) decreasing the applicable interest margins, and (iii) amending the financial covenant applicable to the Revolving Credit Facility to be applicable only when greater than 30% (previously 25%) of the Revolving Credit Facility (including letters of credit not cash collateralized to at least 103%) is outstanding at the end of the fiscal quarter. If such conditions are met, the First Lien Net Leverage Ratio (as defined by the Credit Agreement) at the end of the quarter is required to be greater than 5.50:1.00. At September 30, 2017, the financial covenant is not applicable as there were no borrowings.

Under the Third Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of zero for Adjusted Eurocurrency Rate Loans (as defined in the Credit Agreement) plus an applicable rate of 2.75% (previously 3.50%) subject to an additional step-down to 2.50% or 2.25%, if the First Lien Net Leverage Ratio falls below 3.00:1.00 or 2.50:1.00, respectively. For Base Rate Loans, the interest is subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate or an Adjusted Eurocurrency Rate plus 1%, plus an applicable rate of 1.75% (previously 2.50%), subject to an additional step-down to 1.50% or 1.25%, if the First Lien Net Leverage Ratio falls below 3.00:1.00 and 2.50:1.00, respectively.

19

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

Under circumstances described in the Credit Agreement, we may increase available revolving or term facility borrowings by up to $400.0 million plus an additional amount subject to the Company not exceeding a maximum first lien leverage ratio described in the Credit Agreement.

There have been no borrowings on the Revolving Credit Facility since the issuance of the Senior Secured Credit Facilities. At September 30, 2017 and December 31, 2016, letters of credit issued under the Revolving Credit Facility totaled $21.8 million and $21.3 million which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $378.2 million and $378.7 million at September 30, 2017 and December 31, 2016, respectively.

Significant Terms of the 2021 Senior Notes

On February 1, 2013, Dutch B B.V., as "Dutch Issuer", and Axalta US Holdings, as "US Issuer" (collectively the "Issuers") issued $750.0 million in 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 in aggregate principal amount of 5.750% senior secured notes due 2021 (the "2021 Euro Senior Notes" and, together with the 2021 Dollar Senior Notes, the "2021 Senior Notes") and related guarantees thereof. The 2021 Senior Notes were unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries.

Issuance of New Senior Notes and Redemption of 2021 Senior Notes

On August 16, 2016, Axalta Coating Systems, LLC ("New U.S. Issuer") issued $500.0 million in aggregate principal amount of 4.875% Senior Unsecured Notes (the “2024 Dollar Senior Notes”) and €335.0 million in aggregate principal amount of 4.250% Senior Unsecured Notes (the “2024 Euro Senior Notes”), each due August 2024 (collectively the “2024 Senior Notes”), for the primary purpose of redeeming the 2021 Dollar Senior Notes. Consistent with the terms of the 2021 Dollar Senior Notes, we extinguished the principal at a redemption price equal to 105.531%.

The 2024 Senior Notes are fully and unconditionally guaranteed by Dutch B B.V. (“Parent Guarantor”).

In addition, on September 27, 2016, the Dutch Issuer issued €450.0 million in aggregate principal amount of 3.750% Euro Senior Unsecured Notes due January 2025 (the “2025 Euro Senior Notes” and with the 2024 Senior Notes, the “New Senior Notes”, each of which is described in detail below) for the primary purpose of redeeming the 2021 Euro Senior Notes and the partial prepayment of the 2020 Euro Term Loans. Consistent with the original terms of the 2021 Euro Senior Notes, we extinguished the principal at a redemption price equal to 104.313%.

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 a $2.0 million discount, and are due August 15, 2024. The 2024 Dollar Senior Notes bear interest at 4.875% which is 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 Senior Notes Percentage
2019	103.656	%
2020	102.438	%
2021	101.219	%
2022 and thereafter	100.000	%

20

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Dollar Senior Notes) at a redemption price of 104.875% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.

Upon the occurrence of certain events constituting a change of control, holders of the 2024 Dollar Senior Notes have the right to require us to repurchase all or any part of the 2024 Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.

The 2024 Dollar Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.

The indebtedness issued through the 2024 Dollar Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.

(ii) 2024 Euro Senior Notes

The 2024 Euro Senior Notes were issued at par and are due August 15, 2024. The 2024 Euro Senior Notes bear interest at 4.250% which is 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 Senior Notes Percentage
2019	103.188	%
2020	102.125	%
2021	101.063	%
2022 and thereafter	100.000	%

Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Euro Senior Notes) at a redemption price of 104.250% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.

Upon the occurrence of certain events constituting a change of control, holders of the 2024 Euro Senior Notes have the right to require us to repurchase all or any part of the 2024 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.

The 2024 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.

The indebtedness issued through the 2024 Euro Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.

21

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

(iii) 2025Euro 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% which is 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 Senior 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, 2017.

Remainder of 2017	$	19.3
2018	28.9
2019	25.5
2020	25.4
2021	25.4
Thereafter	3,814.3
	$	3,938.8

The table above excludes $14.2 million of debt associated with our sale-leaseback financings that will not be settled with cash.

22

(16)    FAIR VALUE ACCOUNTING

Fair value of financial instruments

Available for sale securities - The fair value of available for sale securities at September 30, 2017 and December 31, 2016 was $4.7 million and $4.4 million, respectively. The fair value was based upon either Level 1 inputs when the securities are actively traded with quoted market prices or Level 2 when the securities are not frequently traded.

Long-term borrowings - The fair values of the 2024 Dollar Senior Notes, 2024 Euro Senior Notes and 2025 Euro Senior Notes at September 30, 2017 were $502.5 million, $419.8 million and $558.7 million, respectively. The fair values at December 31, 2016 were $500.0 million, $363.8 million and $472.2 million, respectively. The estimated fair values of these notes are based on recent trades, as reported by a third-party pricing service. Due to the infrequent trades of the New Senior Notes, these inputs are considered to be Level 2 inputs.

The fair values of the 2024 Dollar Term Loans and the 2023 Euro Term Loans at September 30, 2017 were $2,079.8 million and $471.8 million, respectively. The fair values of the 2023 Dollar Term Loans and the 2023 Euro Term Loans at December 31, 2016 were $1,560.5 million and $421.8 million, respectively. The estimated fair values of the 2024 Dollar Term Loans and the 2023 Euro Loans are based on recent trades, as reported by a third-party pricing service. Due to the infrequent trades of the Current Term Loans, these inputs are considered to be Level 2 inputs.

Fair value of contingent consideration

The fair value of contingent consideration associated with acquisitions completed in current and prior years are valued at each balance sheet date, until amounts become payable, with adjustments recorded within selling, general and administrative expenses on the condensed consolidated statement of operations. The fair value of contingent consideration at September 30, 2017 was $7.5 million. During the three and nine months ended September 30, 2017, the Company recorded gains of $0.7 million and $4.6 million associated with the changes to fair value, respectively. The fair value of contingent consideration at December 31, 2016 was $10.0 million. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy.

(17)    DERIVATIVE FINANCIAL INSTRUMENTS

We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs.

Derivative Instruments Qualifying and Designated as Cash Flow Hedges

During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps matured on September 29, 2017.

During the three months ended March 31, 2017, we entered into three1.5% interest rate caps with aggregate notional amounts totaling $600 million to hedge the variable interest rate exposures on our 2024 Dollar Term Loans. These caps are effective beginning September 30, 2017 through December 31, 2019 and include an aggregate deferred premium of $8.6 million which will be paid quarterly over the term of the cap.

23

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

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 sheets:

	September 30, 2017		December 31, 2016
Prepaid and other assets:
Interest rate swaps	$	—	$	0.1
Total assets	$	—	$	0.1
Other accrued liabilities:
Interest rate swaps	$	—	$	0.8
Interest rate caps	$	3.0	$	—
Other liabilities
Interest rate caps	$	1.1	$	—
Total liabilities	$	4.1	$	0.8

For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of 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 period earnings.

The following tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2017 and 2016 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  (Gains) Losses  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, 2017		Three Months Ended September 30, 2016				Three Months Ended September 30, 2017			Three Months Ended September 30, 2016			Three Months Ended September 30, 2017		Three Months Ended September 30, 2016
Interest rate contracts	$	—	$	(1.7	)	Interest expense, net	$	(0.5	)	$	1.7	Interest expense, net	$	0.4	$	(2.0	)

	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  (Gains) Losses  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, 2017		Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2017		Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2017		Nine Months Ended September 30, 2016
Interest rate contracts	$	3.7	$	—	Interest expense, net	$	0.2	$	4.9	Interest expense, net	$	2.4	$	1.3

Derivative Instruments Not Designated as Cash Flow Hedges

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 (income) expense, net in the condensed consolidated statement of operations.

24

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

During the year ended December 31, 2013, we purchased a €300.0 million1.5% interest rate cap on our Euro Term Loan for a premium of $3.1 million. The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument were recorded in current period earnings and are included in interest expense. This hedge matured on September 29, 2017.

During the three months ended March 31, 2017, we purchased a 1.25% interest rate cap with a notional amount of €388.0 million to hedge the variable interest rate exposures on our 2023 Euro Term Loans. We paid a premium equal to $0.6 million for the interest rate cap which is effective beginning September 30, 2017 through December 31, 2019. Changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.

The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheets:

	September 30, 2017		December 31, 2016
Prepaid and other assets:
Foreign currency contracts	$	—	$	0.1
Other assets
Interest rate caps	$	0.1	$	—
Total assets	$	0.1	$	0.1
Other accrued liabilities:
Foreign currency contracts	$	—	$	0.5
Total liabilities	$	—	$	0.5

Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings 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	2017		2016		2017		2016
Interest rate caps	Interest expense	$	0.2	$	—	$	0.6	$	—
Foreign currency forward contracts	Other expense, net	$	2.5	$	0.4	$	9.7	$	4.4

(18)    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.

25

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

Our business serves four end-markets globally as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Performance Coatings
Refinish	$	395.3	$	431.7	$	1,205.1	$	1,259.3
Industrial	298.2		184.8		737.7		532.4
Total Net sales Performance Coatings	693.5		616.5		1,942.8		1,791.7
Transportation Coatings
Light Vehicle	309.7		321.1		984.0		994.9
Commercial Vehicle	88.6		83.0		261.3		254.8
Total Net sales Transportation Coatings	398.3		404.1		1,245.3		1,249.7
Total Net sales	$	1,091.8	$	1,020.6	$	3,188.1	$	3,041.4

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,
	2017						2016
	Performance Coatings		Transportation Coatings		Total		Performance Coatings			Transportation Coatings		Total
Net sales (1)	$	693.5	$	398.3	$	1,091.8	$	616.5		$	404.1	$	1,020.6
Equity in earnings (losses) in unconsolidated affiliates	—		0.1		0.1		(0.4		)	0.1		(0.3		)
Adjusted EBITDA (2)	135.1		74.4		209.5		145.7			84.7		230.4
Investment in unconsolidated affiliates	3.1		12.3		15.4		3.3			11.5		14.8

	Nine Months Ended September 30,
	2017						2016
	Performance Coatings		Transportation Coatings		Total		Performance Coatings			Transportation Coatings		Total
Net sales (1)	$	1,942.8	$	1,245.3	$	3,188.1	$	1,791.7		$	1,249.7	$	3,041.4
Equity in earnings (losses) in unconsolidated affiliates	0.2		0.3		0.5		(0.2		)	0.2		—
Adjusted EBITDA (2)	398.8		241.0		639.8		413.2			264.7		677.9
Investment in unconsolidated affiliates	3.1		12.3		15.4		3.3			11.5		14.8

(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:

26

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Income (loss) before income taxes	$	58.4		$	(12.9	)	$	124.8		$	102.8
Interest expense, net	37.7			42.9			109.1			140.8
Depreciation and amortization	88.6			81.2			255.9			235.8
EBITDA	184.7			111.2			489.8			479.4
Debt extinguishment and refinancing related costs (a)	0.6			81.9			13.0			84.2
Foreign exchange remeasurement losses (b)	3.5			4.5			8.3			30.0
Long-term employee benefit plan adjustments (c)	(0.1		)	0.8			0.4			2.1
Termination benefits and other employee related costs (d)	5.8			16.3			6.6			25.2
Consulting and advisory fees (e)	—			2.7			(0.1		)	8.3
Transition-related costs (f)	1.9			—			5.8			—
Offering and transactional costs (g)	0.5			3.0			6.1			4.4
Stock-based compensation (h)	9.2			10.0			30.5			31.6
Other adjustments (i)	0.8			1.5			3.6			5.2
Dividends in respect of noncontrolling interest (j)	(1.8		)	(1.5		)	(2.7		)	(3.0		)
Deconsolidation impacts and impairments (k)	4.4			—			78.5			10.5
Adjusted EBITDA	$	209.5		$	230.4		$	639.8		$	677.9

(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. In addition, during the three and nine months ended September 30, 2016, we amended our Credit Agreement and refinanced our indebtedness, resulting in additional losses of $77.6 million. In connection with the refinancing of our Dollar Term Loans during the nine months ended September 30, 2017, we recorded losses of $13.0 million, including changes to estimates of $0.6 million for the three months ended September 30, 2017. We do not consider these to be indicative of our ongoing operating performance.

(b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of impacts associated with our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $1.8 million for the nine months ended September 30, 2017 and losses of $1.2 million and $23.9 million for the three and nine months ended September 30, 2016, respectively.

(c) Eliminates the non-cash, non-service cost components of long-term employee benefits.

(d) Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.

(e) Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.

(f) Represents integration costs related to the acquisition of the Industrial Wood business that was a carve-out business from Valspar. These amounts are not considered indicative of our ongoing operating performance.

(g) Represents acquisition-related expenses, including changes in the fair value of contingent consideration, as well as costs associated with the 2016 secondary offerings of our common shares by Carlyle, both of which are not considered indicative of our ongoing operating performance.

(h) Represents non-cash costs associated with stock-based compensation.

(i) Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of 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.

(j) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of the entities on Axalta's financial statements.

27

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

(k) During the nine months ended September 30, 2017 and 2016, we recorded a loss in conjunction with the deconsolidation of our Venezuelan subsidiary and a non-cash impairment charge related to a real estate investment of $70.9 million and $10.5 million, respectively. During the three and nine months ended September 30, 2017, we recorded non-cash impairment charges related to certain manufacturing facilities previously announced for closure of $4.4 million and $7.6 million, respectively. We do not consider these to be indicative of our ongoing operating performance.

(19)    SHAREHOLDERS' EQUITY

The following tables present the change in total shareholders’ equity for the nine months ended September 30, 2017 and 2016, respectively.

	Total Axalta			Noncontrolling Interests			Total
Balance at December 31, 2016	$	1,125.1		$	121.5		$	1,246.6
Net income	98.2			5.1			103.3
Other comprehensive income, net of tax	94.1			1.0			95.1
Recognition of stock-based compensation	30.5			—			30.5
Exercise of stock options	19.9			—			19.9
Treasury share repurchase	(58.4		)	—			(58.4		)
Dividends paid to noncontrolling interests	—			(2.7		)	(2.7		)
Balance September 30, 2017	$	1,309.4		$	124.9		$	1,434.3

	Total Axalta		Noncontrolling Interests			Total
Balance at December 31, 2015	$	1,065.7	$	67.5		$	1,133.2
Cumulative effect of an accounting change (1)	43.9		—			43.9
Balance at January 1, 2016	1,109.6		67.5			1,177.1
Net income	76.0		3.7			79.7
Other comprehensive income, net of tax	16.4		0.8			17.2
Recognition of stock-based compensation	31.6		—			31.6
Exercise of stock options	13.8		—			13.8
Noncontrolling interests of acquired subsidiaries	—		51.3			51.3
Dividends paid to noncontrolling interests	—		(3.0		)	(3.0		)
Balance September 30, 2016	$	1,247.4	$	120.3		$	1,367.7

⁽¹⁾ January 1, 2016 balance was adjusted at December 31, 2016 to reflect the impact of the adoption of ASU 2016-09, as discussed in Note 1.

28

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

(20)    ACCUMULATED OTHER COMPREHENSIVE LOSS

	Unrealized Currency Translation Adjustments			Pension Adjustments			Unrealized Gain (Loss) on Securities			Unrealized Gain (Losses) on Derivatives			Accumulated Other Comprehensive Income (Loss)
December 31, 2016	$	(292.2	)	$	(56.6	)	$	0.4		$	(2.0	)	$	(350.4	)
Current year deferrals to AOCI	88.3			(0.3		)	(0.1		)	1.7			89.6
Reclassifications from AOCI to Net income	—			6.2			—			(1.7		)	4.5
Net Change	88.3			5.9			(0.1		)	—			94.1
September 30, 2017	$	(203.9	)	$	(50.7	)	$	0.3		$	(2.0	)	$	(256.3	)

Included in the reclassification from AOCI to net income (loss) was a pension plan adjustment related to the deconsolidation of our Venezuelan subsidiary and the corresponding write-off of the accumulated actuarial loss on our Venezuela pension plan. This resulted in a decrease of $5.9 million in AOCI, inclusive of $2.6 million of tax benefits, and is discussed further in Note 21.

The income tax expense related to the changes in pension benefits for the nine months ended September 30, 2017 was $3.1 million. The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2017 was $16.0 million. The income tax benefit related to the change in the unrealized loss on derivatives for the nine months ended September 30, 2017 was $1.1 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at September 30, 2017 was $2.2 million.

	Unrealized Currency Translation Adjustments			Pension Adjustments			Unrealized Gain (Loss) on Securities		Unrealized Gain (Loss) on Derivatives			Accumulated Other Comprehensive Income (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 benefits for the nine months ended September 30, 2016 was $0.0 million. The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2016 was $13.4 million. The income tax benefit 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.

(21)    VENEZUELA

During the three months ended June 30, 2017, we concluded there was an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. This lack of exchangeability restricted our Venezuelan subsidiary's ability to pay dividends or settle intercompany obligations, which severely limited our ability to realize the benefits from earnings of our Venezuelan operations and access the resulting liquidity provided by those earnings.

29

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In millions, unless otherwise noted)

Based on the fact that we believe this lack of exchangeability will continue, the continued political unrest, the recent drop in demand for our business and the expected losses we were forecasting for the foreseeable future, we concluded that we no longer met the accounting criteria of control in order to continue consolidating our Venezuelan operations and began accounting for our investments in our Venezuelan subsidiary under the cost method of accounting. As a result of this change, we recorded a loss of $70.9 million on our condensed consolidated statement of operations. This loss was comprised of the subsidiary's net assets for $30.0 million, counterparty intercompany receivables with our Venezuela subsidiary for $35.0 million and unrealized actuarial losses associated with pension plans in accumulated other comprehensive income of $5.9 million. The value of the cost investment and all previous intercompany balances are now recorded at zero as of September 30, 2017. Further, our consolidated balance sheet and statement of operations will no longer include the results of our Venezuelan operations. We will recognize income only to the extent that we are paid for inventory we sell or receive cash dividends from our Venezuelan legal entity.

Our Venezuelan subsidiary contributed zero and $2.5 million to net sales during the three and nine months ended September 30, 2017, respectively. This is compared to the subsidiary's net sales for the three and nine months ended September 30, 2016 which represented $19.4 million and $48.6 million of our consolidated net sales, respectively.

During the nine months ended September 30, 2016 we recorded an impairment loss of $10.5 million at our Venezuelan subsidiary to write down the carrying value of a real estate investment to its fair value. The method used to determine fair values for both assets included using Level 2 inputs in the form of a sale and purchase agreement for the certain manufacturing assets and observable market quotes from local real estate broker service firms for the Venezuela real estate investment.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the interim unaudited condensed consolidated financial statements and the condensed notes thereto included elsewhere in this quarterly report, as well as the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

FORWARD-LOOKING STATEMENTS

Many statements made in the following discussion and analysis of our financial condition and results of operations and elsewhere in this Quarterly Report on Form 10-Q that are not statements of historical fact, including statements about our beliefs and expectations, are "forward-looking statements" within the meaning of federal securities laws and should be evaluated as such. Forward-looking statements include information regarding industry outlook as well as possible or assumed future results of operations, including descriptions of our business plan, strategies and capital structure. These statements often include words such as "anticipate," "expect," "suggests," "plan," "believe," "intend," "estimates," "targets," "projects," "should," "could," "would," "may," "will," "forecast" and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. As you read and consider this Quarterly Report on Form 10-Q, you should understand that these statements are not guarantees of performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions, including, but not limited to, the risks and uncertainties described in "Non-GAAP Financial Measures" and "Forward-Looking Statements," as well as "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2016, and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections. Factors that may materially affect such forward-looking statements and projections include:

• adverse developments in economic conditions and, particularly, in conditions in the automotive and transportation industries;

• volatility in the capital, credit and commodities markets;

• our inability to successfully execute on our growth strategy;

• increased competition;

• weather conditions that may temporarily reduce the demand for some of our products;

• reduced demand for some of our products as a result of improved safety features on vehicles and insurance company influence;

• risks of the loss of any of our significant customers or the consolidation of MSOs, distributors and/or body shops;

• our reliance on our distributor network and third-party delivery services for the distribution and export of certain of our products;

• price increases or interruptions in our supply of raw materials;

• failure to develop and market new products and manage product life cycles;

• business disruptions, security threats and security breaches, including cyber security risks;

• risks associated with our non-U.S. operations;

• currency-related risks;

• terrorist acts, conflicts, wars and natural disasters that may materially adversely affect our business, financial condition and results of operations;

• failure to comply with the anti-corruption laws of the United States and various international jurisdictions;

• failure to comply with anti-terrorism laws and regulations and applicable trade embargoes;

• significant environmental liabilities and costs as a result of our current and past operations or products, including operations or products related to our business prior to the Acquisition;

• transporting certain materials that are inherently hazardous due to their toxic nature;

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• litigation and other commitments and contingencies;

• our ability to recruit and retain the experienced and skilled personnel we need to compete;

• unexpected liabilities under any pension plans applicable to our employees;

• work stoppages, union negotiations, labor disputes and other matters associated with our labor force;

• our ability to protect and enforce intellectual property rights;

• intellectual property infringement suits against us by third parties;

• our ability to realize the anticipated benefits of any acquisitions and divestitures;

• our joint ventures’ ability to operate according to our business strategy should our joint venture partners fail to fulfill their obligations;

• risk that the insurance we maintain may not fully cover all potential exposures;

• the risk of impairment charges related to goodwill, identifiable intangible assets and fixed assets;

• our substantial indebtedness;

• our ability to obtain additional capital on commercially reasonable terms may be limited;

• the amount of the costs, fees, expenses and charges related to being a public company;

• any statements of belief and any statements of assumptions underlying any of the foregoing;

• other factors disclosed in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended December 31, 2016 and our other filings with the Securities and Exchange Commission; and

• other factors beyond our control.

These cautionary statements should not be construed by you to be exhaustive and are made only as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

OVERVIEW

We are a leading global manufacturer, marketer and distributor of high performance coatings systems. We have over a 150-year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technology and customer service. Our diverse global footprint of 49 manufacturing facilities, 4 technology centers, 48 customer training centers and over 13,300 employees allows us to meet the needs of customers in approximately 130 countries. We serve our customer base through an extensive sales force and technical support organization, as well as through approximately 4,000 independent, locally based distributors.

We operate our business in two operating segments, Performance Coatings and Transportation Coatings. 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.

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BUSINESS HIGHLIGHTS

General Business Highlights

Our net sales increased 4.8% for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016, driven primarily by our Performance Coatings segment and the associated impacts of our acquisitions. Volume growth was flat as increases in our Transportation Coatings segment were offset entirely by decreases in our Performance Coatings segment. Slight declines in average selling prices across both segments resulted primarily from pricing pressures in select regions within our light vehicle end-market, which contributed to a decrease of 1.5%. Unfavorable currency translation contributed to a further decline of net sales of 0.6%. The following trends have impacted our segment and end-market sales performance:

• Performance Coatings:Net sales excluding currency translation increased 9.3% driven by stronger volumes in our industrial end-market, including the impacts of acquisitions combined with organic volume growth in Europe.

• Transportation Coatings: Net sales excluding currency translation remained relatively consistent with the comparable period with offsetting impacts from stronger volumes in both our light vehicle and commercial vehicle end-markets and lower average selling prices primarily in our North America light vehicle end-market.

Our business serves four end-markets globally with net sales for the three and nine months ended September 30, 2017 and 2016, as follows:

(In millions)	Three Months Ended September 30,				2017 vs 2016		Nine Months Ended September 30,				2017 vs 2016
	2017		2016		% change		2017		2016		% change
Performance Coatings
Refinish	$	395.3	$	431.7	(8.4	)%	$	1,205.1	$	1,259.3	(4.3	)%
Industrial	298.2		184.8		61.4	%	737.7		532.4		38.6	%
Total Net sales Performance Coatings	693.5		616.5		12.5	%	1,942.8		1,791.7		8.4	%
Transportation Coatings
Light Vehicle	309.7		321.1		(3.6	)%	984.0		994.9		(1.1	)%
Commercial Vehicle	88.6		83.0		6.7	%	261.3		254.8		2.6	%
Total Net sales Transportation Coatings	398.3		404.1		(1.4	)%	1,245.3		1,249.7		(0.4	)%
Total Net sales	$	1,091.8	$	1,020.6	7.0	%	$	3,188.1	$	3,041.4	4.8	%

Acquisitions Highlights

During the nine months ended September 30, 2017, we successfully completed six strategic acquisitions within our Performance Coatings segment. Included in these acquisitions was the purchase of the Industrial Wood business in North America, which is discussed in further detail at Note 3 to the interim unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Our 2017 aggregate spending for these 2017 Acquisitions was $559.3 million. The impact of acquisitions contributed $211.1 million to net sales during the nine months ended September 30, 2017.

Capital and Liquidity Highlights

During the nine months ended September 30, 2017, we entered into the Fifth Amendment of our Senior Secured Credit Facilities, which increased the aggregate principal balance of our Dollar Term Loans to $2,000.0 million of which the net proceeds were used to fund the Industrial Wood Acquisition and certain other 2017 Acquisitions. In addition, this amendment extended the maturity date on our Dollar Term Loans and lowered interest rates. The benefits of this refinancing transaction are anticipated to save approximately $7.7 million in annual cash interest compared to the previous principal balances. For additional information, refer to Note 15 to the interim unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

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Other Highlights

In March 2017, we announced that our Board of Directors authorized a common share repurchase program of up to $675.0 million. We expect the share repurchases to be made from time to time in the open market or through privately-negotiated transactions, or otherwise, subject to applicable laws, regulations and approvals. The pace of repurchase activity will be subject to our discretion, and will be based upon market conditions and other capital allocation decisions, while incorporating key factors including cash balances and needs of the business, cash flow from operations, stock price and acquisition opportunities. There is no expiration date on the share repurchase program. During the nine months ended September 30, 2017, repurchases totaled $58.4 million.

FACTORS AFFECTING OUR OPERATING RESULTS

There have been no material changes in the factors affecting our operating results previously reported in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2016.

NON-GAAP FINANCIAL MEASURES

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

To supplement our financial information presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to clarify and enhance an understanding of past performance: EBITDA and Adjusted EBITDA. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance. We further believe that these financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We define our core business as those operations relating to the Company's ongoing performance and the concept is used to make resource allocation and performance evaluation decisions. We use certain of these financial measures for business planning purposes and in measuring our performance relative to that of our competitors. We utilize Adjusted EBITDA as the primary measure of segment performance.

EBITDA consists of net income before interest, taxes, depreciation and amortization. Adjusted EBITDA consists of EBITDA adjusted for (i) non-cash items included within net income, (ii) items the Company does not believe are indicative of ongoing operating performance or (iii) non-recurring, unusual or infrequent items that the Company believes are not reasonably likely to recur within the next two years. We believe that making such adjustments provides investors meaningful information to understand our operating results and ability to analyze financial and business trends on a period-to-period basis.

We believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms EBITDA and Adjusted EBITDA may vary from that of others in our industry. These financial measures should not be considered as alternatives to income before income taxes, net income, earnings per share or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance.

EBITDA and Adjusted EBITDA have important limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

• EBITDA and Adjusted EBITDA:

• do not reflect the significant interest expense on our debt, including the Senior Secured Credit Facilities and the New Senior Notes (as defined herein); and

• eliminate the impact of income taxes on our results of operations;

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any expenditures for such replacements; and

• other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.

We compensate for these limitations by using EBITDA and Adjusted EBITDA along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. Such U.S. GAAP measurements include income before income taxes, net income, earnings per share and other performance measures.

In evaluating these financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in this presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by the excluded items noted above.

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The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA measures discussed above for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net income (loss)	$	56.3		$	(5.4	)	$	103.3		$	79.7
Interest expense, net	37.7			42.9			109.1			140.8
Provision (benefit) for income taxes	2.1			(7.5		)	21.5			23.1
Depreciation and amortization	88.6			81.2			255.9			235.8
EBITDA	184.7			111.2			489.8			479.4
Debt extinguishment and refinancing related costs (a)	0.6			81.9			13.0			84.2
Foreign exchange remeasurement losses (b)	3.5			4.5			8.3			30.0
Long-term employee benefit plan adjustments (c)	(0.1		)	0.8			0.4			2.1
Termination benefits and other employee related costs (d)	5.8			16.3			6.6			25.2
Consulting and advisory fees (e)	—			2.7			(0.1		)	8.3
Transition-related costs (f)	1.9			—			5.8			—
Offering and transactional costs (g)	0.5			3.0			6.1			4.4
Stock-based compensation (h)	9.2			10.0			30.5			31.6
Other adjustments (i)	0.8			1.5			3.6			5.2
Dividends in respect of noncontrolling interest (j)	(1.8		)	(1.5		)	(2.7		)	(3.0		)
Deconsolidation impacts and impairments (k)	4.4			—			78.5			10.5
Adjusted EBITDA	$	209.5		$	230.4		$	639.8		$	677.9

(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. In addition, during the three and nine months ended September 30, 2016, we amended our Credit Agreement and refinanced our indebtedness, resulting in additional losses of $77.6 million. In connection with the refinancing of our Dollar Term Loans during the nine months ended September 30, 2017, we recorded losses of $13.0 million, including changes to estimates of $0.6 million for the three months ended September 30, 2017. We do not consider these to be indicative of our ongoing operating performance.

(b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of impacts associated with our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $1.8 million for the nine months ended September 30, 2017 and losses of $1.2 million and $23.9 million for the three and nine months ended September 30, 2016, respectively.

(c) Eliminates the non-cash, non-service cost components of long-term employee benefits.

(d) Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.

(e) Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.

(f) Represents integration costs related to the acquisition of the Industrial Wood business that was a carve-out business from Valspar. These amounts are not considered indicative of our ongoing operating performance.

(g) Represents acquisition-related expenses, including changes in the fair value of contingent consideration, as well as costs associated with the 2016 secondary offerings of our common shares by Carlyle, both of which are not considered indicative of our ongoing operating performance.

(h) Represents non-cash costs associated with stock-based compensation.

(i) Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of 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.

(j) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of the entities on Axalta's financial statements.

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(k) During the nine months ended September 30, 2017 and 2016, we recorded a loss in conjunction with the deconsolidation of our Venezuelan subsidiary and a non-cash impairment charge related to a real estate investment of $70.9 million and $10.5 million, respectively. During the three and nine months ended September 30, 2017, we recorded non-cash impairment charges related to certain manufacturing facilities previously announced for closure of $4.4 million and $7.6 million, respectively. We do not consider these to be indicative of our ongoing operating performance.

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RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the information contained in the accompanying unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q. Our historical results of operations set forth below may not necessarily reflect what will occur in the future.

Three months ended September 30, 2017 compared to the three months ended September 30, 2016

The following table was derived from the interim unaudited condensed consolidated statements of operations for the three months ended September 30, 2017 and 2016 included elsewhere in this Quarterly Report on Form 10-Q.

	Three Months Ended September 30,
(In millions)	2017		2016
Net sales	$	1,091.8	$	1,020.6
Other revenue	4.5		5.7
Total revenue	1,096.3		1,026.3
Cost of goods sold	702.5		630.4
Selling, general and administrative expenses	246.4		242.3
Research and development expenses	16.6		14.9
Amortization of acquired intangibles	26.8		21.3
Income from operations	104.0		117.4
Interest expense, net	37.7		42.9
Other expense, net	7.9		87.4
Income (loss) before income taxes	58.4		(12.9		)
Provision (benefit) for income taxes	2.1		(7.5		)
Net income (loss)	56.3		(5.4		)
Less: Net income attributable to noncontrolling interests	1.4		1.2
Net income (loss) attributable to controlling interests	$	54.9	$	(6.6	)

Net sales

Net sales increased$71.2 million, or 7.0%, to $1,091.8 million for the three months ended September 30, 2017, compared to net sales of $1,020.6 million for the three months ended September 30, 2016. Our net sales increase for the three months ended September 30, 2017 included the benefits of acquisitions which contributed to an increase of 9.7%. Acquisition volume was partially offset by declines in organic volumes of 3.9% primarily driven by our Performance Coatings segment in North America and Latin America. Further offsetting the increase were lower average selling prices of 0.7% primarily in our light vehicle and commercial vehicle end-markets. Favorable effects of currency translation resulting from the strengthening of the Euro and certain currencies in Latin America and Asia compared to the U.S. dollar also contributed to a 1.9% increase.

Other revenue

Other revenue decreased$1.2 million, or 21.1%, to $4.5 million for the three months ended September 30, 2017 compared to $5.7 million for the three months ended September 30, 2016 as a result of decreases in service revenue within our European region. The impacts of currency exchange did not have a material impact on the comparable periods.

Cost of sales

Cost of sales increased$72.1 million, or 11.4%, to $702.5 million for the three months ended September 30, 2017, compared to $630.4 million for the three months ended September 30, 2016. The increase for the three months ended September 30, 2017 resulted primarily from higher volumes of 5.8% driven by acquisitions. Further contributing to the increase were unfavorable effects of currency translation resulting from the impacts of the stronger Euro and certain currencies within Latin America and Asia compared to the U.S. dollar, which contributed to a 1.5% increase. Cost of sales as a percentage of net sales increased to 64.3% for the three months ended September 30, 2017 compared to 61.8% for the three months ended September 30, 2016, as a result of higher variable costs and lower average selling prices.

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Selling, general and administrative expenses

Selling, general and administrative expenses increased$4.1 million, or 1.7%, to $246.4 million for the three months ended September 30, 2017 compared to $242.3 million for the three months ended September 30, 2016. The increase for the three months ended September 30, 2017 resulted primarily from increases of $15.1 million resulting from acquisitions and our focus on opportunities to expand our market presence and invest in commercial capabilities. Selling, general and administrative expenses for the three months ended September 30, 2017 included $8.5 million related to our cost savings initiatives and acquisition-related costs as compared to $21.9 million of similar costs for the three months ended September 30, 2016, resulting in a decrease of $13.4 million over the comparable period.

Unfavorable impacts of currency exchange during the three months ended September 30, 2017 compared to the three months ended September 30, 2016 further contributed to a 2.0% increase in selling, general and administrative expenses and were primarily a result of the stronger Euro and certain currencies within Latin America and Asia compared to the U.S. dollar.

Research and development expenses

Research and development expenses increased$1.7 million, or 11.4%, to $16.6 millionfor the three months ended September 30, 2017 compared to $14.9 million for the three months ended September 30, 2016. This increase was a result of additional spend as we focus on developing new and existing coatings products, sourcing of additional internal capabilities, as well as the impacts from acquisitions. Further contributing to the increase were the impacts of currency exchange, which contributed to an increase of 4.5% over the comparable period.

Amortization of acquired intangibles

Amortization of acquired intangibles increased$5.5 million, or 25.8%, to $26.8 million for the three months ended September 30, 2017 compared to $21.3 million for the three months ended September 30, 2016. This increase for the three months ended September 30, 2017 was attributable to amortization of the definite-lived intangible assets from our acquisitions combined with impacts of the strengthening Euro and certain currencies within Latin America and Asia compared to the U.S. dollar.

Interest expense, net

Interest expense, net decreased$5.2 million, or 12.1%, to $37.7 million for the three months ended September 30, 2017 compared to $42.9 million for the three months ended September 30, 2016. The decrease for the three months ended September 30, 2017 was driven by the refinancing of our indebtedness during 2016 and 2017 which reduced the overall interest rates of our debt portfolio, partially offset by increases resulting from the incremental indebtedness associated with the 2024 Dollar Term Loans used to finance the Industrial Wood Acquisition.

Other expense, net

Other expense, net decreased$79.5 million from $87.4 million for the three months ended September 30, 2016 to $7.9 million for the three months ended September 30, 2017. This decrease relates primarily to the absence of losses on debt extinguishment and refinancing related costs incurred during the three months ended September 30, 2016 which resulted in a $81.3 million decrease over the comparable period. In addition, there was a reduction in foreign exchange losses, net from $3.5 million during the three months ended September 30, 2017 as compared to $4.5 million for the three months ended September 30, 2016, resulting in a $1.0 milliondecrease over the comparable period. Partially offsetting the decrease was the impact of a $4.4 million impairment related to a manufacturing facility closure.

Provision for income taxes

We recorded an income tax provision of $2.1 million for the three months ended September 30, 2017, which represents a 3.6% effective tax rate in relation to income before income taxes of $58.4 million. The effective tax rate for the three months ended September 30, 2017 differs from the U.S. Federal statutory rate by 31.4%, which is the result of various items that impacted the effective rate both favorably and unfavorably. We recorded adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal rate, primarily related to Bermuda, China, Germany, Luxembourg, Netherlands and Switzerland, which had a net favorable impact of $34.6 million and current year excess tax benefits related to stock-based compensation of $2.7 million. Our net favorable adjustments were partially offset by the impact of pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized of $0.5 million, non-deductible expenses and interest of $3.1 million and $17.1 million associated with currency exchange losses.

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We recorded an income tax benefit of $7.5 million for the three months ended September 30, 2016, which represents a 58.1% effective tax rate in relation to the loss before income taxes of $12.9 million. The effective tax rate for the three months ended September 30, 2016 differs from the U.S. Federal statutory rate by 23.1%, which is the result of various items that impacted the effective rate both favorably and unfavorably. We recorded adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal rate, primarily in China, Germany, Luxembourg, Netherlands and Switzerland, which had a net favorable impact of $15.8 million and we recognized a benefit of $0.9 million associated with currency exchange losses. These adjustments were partially offset by the impact of pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized of $14.0 million and non-deductible expenses and interest of $4.3 million. The provision for income taxes for the three months ended September 30, 2016 has been revised to reflect the adoption of ASU 2016-09, resulting in a decrease of the provision of $6.4 million.

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Nine months endedSeptember 30, 2017 compared to the nine months ended September 30, 2016

The following table was derived from the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017 and 2016 included elsewhere in this Quarterly Report on Form 10-Q.

	Nine Months Ended September 30,
(In millions)	2017		2016
Net sales	$	3,188.1	$	3,041.4
Other revenue	16.5		18.7
Total revenue	3,204.6		3,060.1
Cost of goods sold	2,033.6		1,885.8
Selling, general and administrative expenses	717.8		699.1
Venezuela deconsolidation charge	70.9		—
Research and development expenses	48.6		41.6
Amortization of acquired intangibles	72.3		61.8
Income from operations	261.4		371.8
Interest expense, net	109.1		140.8
Other expense, net	27.5		128.2
Income before income taxes	124.8		102.8
Provision for income taxes	21.5		23.1
Net income	103.3		79.7
Less: Net income attributable to noncontrolling interests	5.1		3.7
Net income attributable to controlling interests	$	98.2	$	76.0

Net sales

Net sales increased$146.7 million, or 4.8%, to $3,188.1 million for the nine months ended September 30, 2017, compared to net sales of $3,041.4 million for the nine months ended September 30, 2016. Our net sales increase for the nine months ended September 30, 2017 included the benefits of acquisitions which contributed to an increase in sales volumes of 6.9%. Further contributing to this sales growth was an increase in organic sales volumes within Europe and Asia, which were offset by declines in organic sales volumes in Latin America and North America, resulting in flat organic volumes over the comparable period. Lower average sales prices contributed to a 1.5% decrease driven primarily by the Transportation Coatings segment. Net sales were also negatively impacted from unfavorable impacts of currency translation, which reduced net sales by 0.6%, due primarily to the impacts of the weaker Euro and certain currencies within Latin America and Asia compared to the U.S. dollar.

Other revenue

Other revenue decreased$2.2 million, or 11.8%, to $16.5 million for the nine months ended September 30, 2017, compared to $18.7 million for the nine months ended September 30, 2016 as a result of decreases in service revenue within our European region. The impacts of currency exchange did not have a material impact on the comparable periods.

Cost of sales

Cost of sales increased$147.8 million, or 7.8%, to $2,033.6 million for the nine months ended September 30, 2017 compared to $1,885.8 million for the nine months ended September 30, 2016. The increase for the nine months ended September 30, 2017 resulted primarily from higher volumes of 6.9%. Cost of sales as a percentage of net sales increased to 63.8% for the nine months ended September 30, 2017 compared to 62.0% for the nine months ended September 30, 2016 as a result of lower average selling prices combined with the impact of fair value of inventory associated with recent acquisitions.

Partially offsetting this increase were favorable effects of currency translation resulting from the impacts of the weaker Euro and certain currencies within Latin America and Asia compared to the U.S. dollar, which contributed to a 0.3% decrease.

Selling, general and administrative expenses

Selling, general and administrative expenses increased$18.7 million, or 2.7%, to $717.8 million for the nine months ended September 30, 2017 compared to $699.1 million for the nine months ended September 30, 2016. The increase resulted primarily from the impacts of acquisitions of $37.0 million as well as our focus on opportunities to expand our market presence and invest in commercial capabilities.

40

This increase was partially offset by a decrease in costs associated with cost savings initiatives and acquisition-related costs which were $22.6 million for the nine months ended September 30, 2017 as compared to $38.1 million of costs for the nine months ended September 30, 2016, resulting in a $15.5 milliondecrease over the comparable period.

Further offsetting the increase was the favorable impact of currency exchange during the nine months ended September 30, 2017 which contributed to a 0.5% reduction in selling, general and administrative expenses due to the impact of the weakening Euro and certain currencies within Latin America and Asia compared to the U.S. dollar.

Venezuela deconsolidation charge

During the nine months ended September 30, 2017 we recorded a loss of $70.9 million in conjunction with the deconsolidation of our Venezuelan subsidiary, for which there were no corresponding losses recorded during nine months ended September 30, 2016. See further discussion in Note 21 to the interim unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Research and development expenses

Research and development expenses increased$7.0 million, or 16.8%, to $48.6 millionfor the nine months ended September 30, 2017 compared to $41.6 million for the nine months ended September 30, 2016. This increase was a result of additional spend as we focus on developing new and existing coatings products, sourcing of additional internal capabilities, as well as the impacts from acquisitions. The impacts of currency exchange did not have a material impact on the comparable periods.

Amortization of acquired intangibles

Amortization of acquired intangibles increased$10.5 million, or 17.0%, to $72.3 million for the nine months ended September 30, 2017 compared to $61.8 million for the nine months ended September 30, 2016. This increase was attributable to amortization of the definite-lived intangible assets from our acquisitions. The impacts of currency exchange did not have a material impact on the comparable periods.

Interest expense, net

Interest expense, net decreased$31.7 million, or 22.5%, to $109.1 million for the nine months ended September 30, 2017 compared to $140.8 million for the nine months ended September 30, 2016. The decrease was driven by the refinancing of our indebtedness during 2016 and 2017 which reduced the overall interest rates of our debt portfolio, partially offset by increases resulting from the incremental indebtedness associated with the 2024 Dollar Term Loans used to finance the Industrial Wood Acquisition.

Other expense, net

Other expense, net decreased$100.7 million to $27.5 million for the nine months ended September 30, 2017 compared to $128.2 million for the nine months ended September 30, 2016. This decrease relates primarily to losses on debt extinguishment and refinancing related costs incurred during the nine months ended September 30, 2016 which aggregated to $84.2 million. Comparable costs incurred during the nine months ended September 30, 2017 aggregated to $13.0 million resulting in a decrease of $71.2 million.

In addition, there was a $21.7 million reduction of foreign exchange losses, net from $30.0 million recorded during the nine months ended September 30, 2016 to $8.3 million during the nine months ended September 30, 2017.

Furthering this decrease was a $2.9 million decrease in impairments to $7.6 million during the nine months ended September 30, 2017 associated with impairments related to the manufacturing facilities closures, compared to the impairment of $10.5 million related to our real estate investment in Venezuela incurred during the nine months ended September 30, 2016.

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Provision for income taxes

We recorded an income tax provision of $21.5 million for the nine months ended September 30, 2017, which represents a 17.2% effective tax rate in relation to the income before income taxes of $124.8 million. The effective tax rate for the nine months ended September 30, 2017 differs from the U.S. Federal statutory rate by 17.8%, which is the result of various items that impacted the effective rate both favorably and unfavorably. We recorded adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal rate, primarily related to Bermuda, China, Germany, Luxembourg, Netherlands and Switzerland, which had a net favorable impact of $62.6 million and current year excess tax benefits related to stock-based compensation of $11.6 million. Furthermore, we recorded a deferred tax asset of $26.4 million related to the tax basis in our deconsolidated Venezuelan subsidiary, which was fully offset by a valuation allowance as we do not expect to realize the benefits. Our net favorable adjustments were partially offset by the impact of pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized of $8.5 million, non-deductible expenses and interest of $10.9 million and $9.4 million associated with currency exchange losses. In addition, the pre-tax charge of $70.9 million related to the deconsolidation of our Venezuelan subsidiary resulted in an unfavorable impact of $24.8 million on the effective rate.

We recorded an income tax provision of $23.1 million for the nine months ended September 30, 2016, which represents a 22.5% effective tax rate in relation to the income before income taxes of $102.8 million. The effective tax rate for the nine months ended September 30, 2016 differs from the U.S. Federal statutory rate by 12.5%, which is the result of various items that impacted the effective rate both favorably and unfavorably. We recorded adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal rate, primarily in China, Germany, Luxembourg, Netherlands and Switzerland, which had a net favorable impact of $31.9 million and we recognized a benefit of $9.5 million associated with currency exchange losses. These adjustments were partially offset by the impact of pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized of $23.3 million and non-deductible expenses and interest of $8.0 million. In addition, our pre-tax impairment charge in Venezuela of $10.5 million had an unfavorable $3.7 million impact on the effective rate as it was non-deductible. The provision for income taxes for the nine months ended September 30, 2016 has been amended to reflect the adoption of ASU 2016-09, resulting in a decrease of the provision of $10.8 million.

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SEGMENT RESULTS

Three months ended September 30, 2017 compared to the three months ended September 30, 2016

The following table presents net sales and Adjusted EBITDA, by segment, for the periods presented:

	Three Months Ended September 30,
(In millions)	2017		2016
Net Sales
Performance Coatings	$	693.5	$	616.5
Transportation Coatings	398.3		404.1
Total	$	1,091.8	$	1,020.6
Adjusted EBITDA
Performance Coatings	$	135.1	$	145.7
Transportation Coatings	74.4		84.7
Total	$	209.5	$	230.4

Performance Coatings Segment

Net sales increased$77.0 million, or 12.5%, to $693.5 million for the three months ended September 30, 2017 compared to net sales of $616.5 million for the three months ended September 30, 2016. The increase in net sales for the three months ended September 30, 2017 was driven by increased volumes of 9.5%. This included a 16.1% benefit from acquisitions and organic volume increases in our industrial end-market of 3.0%, partially offset by a decline in our refinish end-market driven by distributor working capital adjustments and recent natural disasters in North America, as well as the Venezuela deconsolidation impact in Latin America. Higher average selling prices contributed to an increase of 0.9%, as well as favorable impacts of currency exchange related to strengthening of the Euro and certain currencies in Latin America and Asia compared to the U.S. dollar which contributed to a 2.1% increase.

Adjusted EBITDA decreased$10.6 million, or 7.3%, to $135.1 million for the three months ended September 30, 2017 compared to Adjusted EBITDA of $145.7 million for the three months ended September 30, 2016. The decrease in Adjusted EBITDA for the three months ended September 30, 2017 was driven by lower sales volumes in North America and Latin America and the unfavorable impacts of higher variable costs across all regions and end-markets. Partially offsetting these decreases were the impacts of acquisitions and higher average selling prices across all regions, as well as favorable impacts of the stronger Euro and certain currencies within Latin America and Asia compared to the U.S. dollar.

Transportation Coatings Segment

Net sales decreased$5.8 million, or 1.4%, to $398.3 million for the three months ended September 30, 2017 compared to net sales of $404.1 million for the three months ended September 30, 2016. The decrease in net sales for the three months ended September 30, 2017 was driven by lower than average selling prices of 3.0% primarily resulting from our light vehicle end-market. These declines were offset through an increase in sales volumes which contributed to growth of 0.2%, and favorable impacts of currency exchange related to strengthening of the Euro and certain currencies in Latin America and Asia compared to the U.S. dollar which contributed to a 1.4% increase in net sales.

Adjusted EBITDA decreased$10.3 million, or 12.2%, to $74.4 million for the three months ended September 30, 2017 compared to Adjusted EBITDA of $84.7 million for the three months ended September 30, 2016. The decrease in Adjusted EBITDA for the three months ended September 30, 2017 was primarily driven by lower than average selling prices in our light vehicle end-market and higher variable costs across all regions and end-markets. These decreases were partially offset by the impacts of lower operating costs across all regions and end-markets.

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Nine months endedSeptember 30, 2017 compared to the nine months ended September 30, 2016

The following table presents net sales and Adjusted EBITDA, by segment, for the periods presented:

	Nine Months Ended September 30,
(In millions)	2017		2016
Net Sales
Performance Coatings	$	1,942.8	$	1,791.7
Transportation Coatings	1,245.3		1,249.7
Total	$	3,188.1	$	3,041.4
Adjusted EBITDA
Performance Coatings	$	398.8	$	413.2
Transportation Coatings	241.0		264.7
Total	$	639.8	$	677.9

Performance Coatings Segment

Net sales increased$151.1 million, or 8.4%, to $1,942.8 million for the nine months ended September 30, 2017 compared to net sales of $1,791.7 million for the nine months ended September 30, 2016. The increase in net sales for the nine months ended September 30, 2017 was driven by increased volumes of 9.5%. This included an 11.1% benefit from acquisitions and organic volume increases in our industrial end-market of 2.2%, partially offset by a decline in our refinish end-market driven by distributor working capital adjustments and recent natural disasters in North America, as well as the Venezuela deconsolidation impact in Latin America. This volume growth was partially offset by lower average selling prices which decreased net sales by 0.2% as well as unfavorable impacts of currency exchange related to the weakening of the Euro and certain currencies within Latin America and Asia, which contributed to a 0.9% reduction in net sales.

Adjusted EBITDA decreased$14.4 million, or 3.5%, to $398.8 million for the nine months ended September 30, 2017 compared to Adjusted EBITDA of $413.2 million for the nine months ended September 30, 2016. The decrease in Adjusted EBITDA in the nine months ended September 30, 2017 was primarily driven by a decline in sales volumes in Latin America combined with lower than average selling prices in North America. Furthering these decreases were unfavorable impacts of the weaker Euro and certain currencies within Latin America and Asia compared to the U.S. dollar, as well as higher variable costs. Offsetting these decreases was volume growth in North America and Europe due to acquisitions.

Transportation Coatings Segment

Net sales decreased$4.4 million, or 0.4%, to $1,245.3 million for the nine months ended September 30, 2017 compared to net sales of $1,249.7 million for the nine months ended September 30, 2016. The decrease in net sales for the nine months ended September 30, 2017 was driven by lower average selling prices across both end-markets which resulted in declines in net sales of 3.4%. Further contributing to the decline were the unfavorable impacts of currency exchange related to the weakening of the Euro and certain currencies within Asia compared to the U.S. dollar further contributed to a 0.3% reduction in net sales. Partially offsetting these declines was a 3.3% increase in sales volumes across both end-markets, including the impact of acquisitions.

Adjusted EBITDA decreased$23.7 million, or 9.0%, to $241.0 million for the nine months ended September 30, 2017 compared to Adjusted EBITDA of $264.7 million for the nine months ended September 30, 2016. The decrease in Adjusted EBITDA for the nine months ended September 30, 2017 was driven by lower average selling prices primarily within our light vehicle end-market combined with higher operating costs and unfavorable impacts of the weakening of certain currencies within Europe and Asia compared to the U.S. dollar. These decreases were partially offset by increases in sales volumes across both end-markets, inclusive of positive acquisition impacts.

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LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash on hand, cash flow from operations and available borrowing capacity under our Senior Secured Credit Facilities.

At September 30, 2017, availability under the Revolving Credit Facility was $378.2 million, net of $21.8 million of letters of credit outstanding. All such availability may be utilized without violating any covenants under the credit agreement governing such facility or the indentures governing the New Senior Notes. At September 30, 2017, we had $12.0 million of outstanding borrowings under other lines of credit. Our remaining available borrowing capacity under other lines of credit in certain non-U.S. jurisdictions totaled $1.0 million.

We or our affiliates, at any time and from time to time, may purchase shares of our common stock, the New Senior Notes or other indebtedness. Any such purchases may be made through the open market or privately negotiated transactions with third parties or pursuant to one or more redemption, tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration, as we, or any of our affiliates, may determine.

Cash Flows

	Nine Months Ended September 30,
(In millions)	2017			2016
Net cash provided by (used for):
Operating activities:
Net income	$	103.3		$	79.7
Depreciation and amortization	255.9			235.8
Amortization of deferred financing costs and original issue discount	6.1			14.6
Debt extinguishment and refinancing related costs	13.0			84.2
Deferred income taxes	(21.7		)	(15.0		)
Realized and unrealized foreign exchange (gains) losses, net	(1.4		)	30.6
Stock-based compensation	30.5			31.6
Asset impairment	7.6			10.5
Venezuela deconsolidation charge	70.9			—
Other non-cash items	6.9			(10.4		)
Net income adjusted for non-cash items	471.1			461.6
Changes in operating assets and liabilities	(164.7		)	(130.3		)
Operating activities	306.4			331.3
Investing activities	(646.7		)	(205.1		)
Financing activities	380.7			(72.8		)
Effect of exchange rate changes on cash	13.5			(10.0		)
Net decrease in cash and cash equivalents	$	53.9		$	43.4

Nine months ended September 30, 2017

Net Cash Provided by Operating Activities

Net cash provided by operating activities for the nine months ended September 30, 2017 was $306.4 million. Net income before deducting depreciation, amortization and other non-cash items generated cash of $471.1 million. This was partially offset by net increases in uses of working capital of $164.7 million. The most significant drivers in working capital were increases in accounts receivables of $44.5 million, inventory of $37.6 million and other assets of $79.9 million, due to the seasonal increase in net sales, increased inventory builds to support ongoing operational demands and upfront customer incentive payments during the nine months ended September 30, 2017. Other uses were due to reductions in other accrued liabilities of $27.8 million and other liabilities of $9.1 million related to payments of normal operating activities, including interest payments on our long-term indebtedness and timing of cash payments for annual employee performance related benefits, offset by increases in accounts payable of $34.2 million.

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Net Cash Used for Investing Activities

Net cash used for investing activities for the nine months ended September 30, 2017 was $646.7 million. This use was comprised of business acquisitions of $559.3 million (net of cash acquired), purchases of property, plant and equipment of $87.2 million, reduction of cash due to Venezuela deconsolidation of $4.3 million, and net cash used for other investing activities of $4.6 million.

Net Cash Provided by Financing Activities

Net cash provided by financing activities for the nine months ended September 30, 2017 was $380.7 million. This change was driven by net proceeds of $456.4 million relating to the refinancing of our Dollar Term Loans and cash received from stock option exercises of$19.9 million. These proceeds were offset by purchases of treasury stock for$58.4 millionand other payments of$37.2 millionconsisting of financing-related costs, pay-down of short-term and long-term borrowings, deferred acquisition-related considerations, including payments for deferred purchase price consideration and contingent consideration on historical acquisitions, and dividends to noncontrolling interests.

Other Impacts on Cash

Currency exchange impacts on cash for the nine months ended September 30, 2017 were $13.5 million, which was driven primarily by favorable exchange impacts from the strengthening of the Euro compared to the U.S. dollar.

Nine months ended September 30, 2016

Net Cash Provided by Operating Activities

Net cash provided by operating activities was $331.3 million for the nine months ended September 30, 2016. Net income before deducting depreciation, amortization and other non-cash items generated cash of $461.6 million. This was partially offset by net increases in working capital of $130.3 million. The most significant drivers in working capital were increases in accounts receivables and other assets of $135.0 million primarily due to the seasonal timing of net sales.

Net Cash Used for Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2016 was $205.1 million. This use was substantially driven by business acquisitions of $103.5 million (net of cash acquired), purchases of property, plant and equipment of $95.3 million, and intangible asset acquisitions of $3.9 million.

Net Cash Used for Financing Activities

Net cash used in financing activities for the nine months ended September 30, 2016 was $72.8 million. This use was driven by the redemption of our 2021 Dollar and Euro Senior Notes of $1,375.5 million, which also required us to pay a premium for early redemption of $56.6 million. These payments were offset by proceeds from the issuance of our new 2024 Senior Notes and 2025 Euro Senior Notes of $1,377.6 million, which also required us to pay financing costs of $21.7 million in relation to the issuance of our new debt. In addition, we had cash received from stock options exercised for $13.8 million, which is offset by repayments of short-term borrowings of $7.2 million and dividends paid to noncontrolling interests of

$3.0 million.

Other Impacts on Cash

Currency exchange impacts on cash for the nine months ended September 30, 2016 were $10.0 million, primarily driven by the impacts on cash resulting from the change in our translation rates for our Venezuelan subsidiary, which contributed $13.9 million.

Financial Condition

We had cash and cash equivalents at September 30, 2017 and December 31, 2016 of $588.9 million and $535.4 million, respectively. Of these balances, $318.7 million and $366.7 million were maintained in non-U.S. jurisdictions as of September 30, 2017 and December 31, 2016, respectively. We believe our organizational structure allows us the necessary flexibility to move funds throughout our subsidiaries to meet our operational working capital needs.

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Our business may not generate sufficient cash flow from operations and future borrowings may not be available under our Senior Secured Credit Facilities in an amount sufficient to enable us to pay our indebtedness, or to fund our other liquidity needs, including planned capital expenditures. In such circumstances, we may need to refinance all or a portion of our indebtedness on or before maturity. We may not be able to refinance any of our indebtedness on commercially reasonable terms or at all. If we cannot service our indebtedness, we may have to take actions such as selling assets, seeking additional equity or reducing or delaying capital expenditures, strategic acquisitions, investments and alliances. Our primary sources of liquidity are cash on hand, cash flow from operations and available borrowing capacity under our Revolving Credit Facility. Based on our forecasts, we believe that cash flow from operations, available cash on hand and available borrowing capacity under our Senior Secured Credit Facilities and existing lines of credit will be adequate to service debt, fund our cost-savings initiatives, meet liquidity needs and fund necessary capital expenditures for the next twelve months.

Our ability to make scheduled payments of principal or interest on, or to refinance, our indebtedness or to fund working capital requirements, capital expenditures and other current obligations will depend on our ability to generate cash from operations. Such cash generation is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.

If required, our ability to raise additional financing and our borrowing costs may be impacted by short and long-term debt ratings assigned by independent rating agencies, which are based, in significant part, on our performance as measured by certain credit metrics such as interest coverage and leverage ratios. Our highly leveraged nature may limit our ability to procure additional financing in the future.

The following table details our borrowings outstanding at the end of the periods indicated:

(In millions)	September 30, 2017			December 31, 2016
2024 Dollar Term Loans	$	1,995.0		$	—
2023 Dollar Term Loans	—			1,545.0
2023 Euro Term Loans	467.1			417.6
2024 Dollar Senior Notes	500.0			500.0
2024 Euro Senior Notes	394.2			349.7
2025 Euro Senior Notes	529.5			469.8
Short-term and other borrowings	67.2			39.8
Unamortized original issue discount	(9.6		)	(10.0		)
Unamortized deferred financing costs	(40.4		)	(48.0		)
	$	3,903.0		$	3,263.9
Less:
Short term borrowings	$	13.1		$	8.3
Current portion of long-term borrowings	24.7			19.6
Long-term debt	$	3,865.2		$	3,236.0

Our indebtedness, including the Senior Secured Credit Facilities and New Senior Notes, is more fully described in Note 15 to the interim unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

We continue to maintain sufficient liquidity to meet our requirements, including our principal payments and associated interest as well as our working capital needs. Availability under the Revolving Credit Facility was $378.2 million and $378.7 million at September 30, 2017 and December 31, 2016, respectively, all of which may be borrowed by us without violating any covenants under the credit agreement governing such facility or the indentures governing the New Senior Notes.

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Contractual Obligations

The following table summarizes our contractual obligations at September 30, 2017:

	Contractual Obligations Due In:
(In millions)	Total		Remainder of 2017		2018-2019		2020-2021		Thereafter
Debt, including current portion (1)
Senior Secured Credit Facilities, consisting of the following:
Term Loan Facilities:
2024 Dollar Term Loans	$	1,995.0	$	5.0	$	40.0	$	40.0	$	1,910.0
2023 Euro Term Loans	467.1		1.2		9.4		9.4		447.1
Senior Notes, consisting of the following:
2024 Dollar Senior Notes	500.0		—		—		—		500.0
2024 Euro Senior Notes	394.2		—		—		—		394.2
2025 Euro Senior Notes	529.5		—		—		—		529.5
Other borrowings (2)	15.2		13.1		1.4		0.5		0.2
Interest payments (3)	945.4		36.2		286.1		282.3		340.8
Sale-leaseback financings (4)	115.3		1.3		10.9		11.2		91.9
Operating leases	129.3		11.6		59.6		31.2		26.9
Pension contributions (5)	3.2		3.2		—		—		—
Purchase obligations (6)	167.5		15.4		131.6		7.7		12.8
Uncertain tax positions, including interest and penalties (7)	—		—		—		—		—
Total	$	5,261.7	$	87.0	$	539.0	$	382.3	$	4,253.4

(1) During the nine months ended September 30, 2017 we refinanced our 2023 Dollar Term Loans with our 2024 Dollar Term Loans (see Note 15 to the interim unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q). This resulted in a significant increase in our obligations for the years after 2021. Amounts assume that the Senior Secured Credit Facilities and New Senior Notes are repaid upon maturity, and the Revolving Credit Facility remains undrawn, which may or may not reflect future events.

(2) Other borrowings excludes debt associated with two of our leases treated as indebtedness, discussed within end-note 4.

(3) Future interest payments include commitment fees on the unused portion of the Revolving Credit Facility, and reflect the interest payments on our Current Term Loans and New Senior Notes. Future interest payments assume September 30, 2017 variable interest rates will prevail throughout all future periods. Amounts represent the timing of interest accruals. Actual interest payments and repayment amounts may change depending on impact of interest rates on variable rate indebtedness.

(4) During the three months ended September 30, 2017 we began treating one of our leases as a sale-leaseback financing obligation, which was previously treated as a build-to-suit lease. During the year ended December 31, 2016 we also recognized one of our leases as a sale-leaseback financing. The cash rental costs to be paid over the terms of these leases are reflected within the table above.

(5) We expect to make contributions to our defined benefit pension plans beyond 2017; however, the amount of any contributions are dependent on the future economic environment and investment returns, and we are unable to reasonably estimate the pension contributions beyond 2017.

(6) During 2016 and 2017, we completed business acquisitions which require certain commitments, including to acquire remaining interests and pay contingent consideration. At September 30, 2017 we are committed to pay $0.2 million during the remainder of 2017 and $70.5 million during the years ended December 31, 2018 and 2019. Commitments related to contingent consideration arrangements are subject to change based on future performance.

(7) At September 30, 2017, we had approximately $17.1 million of gross uncertain tax positions, including interest and penalties that could result in potential payments. Due to the high degree of uncertainty regarding future timing of cash flows associated with these liabilities, we are unable to estimate the years in which settlement will occur with the respective taxing authorities.

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Scheduled Maturities

Below is a schedule of required future repayments of all borrowings outstanding at September 30, 2017.

(In millions)
Remainder of 2017	$	19.3
2018	28.9
2019	25.5
2020	25.4
2021	25.4
Thereafter	3,814.3
Total	$	3,938.8

The table above excludes $14.2 million of debt associated with our sale-leaseback financings that will not be settled with cash.

Off-Balance Sheet Arrangements

We directly guarantee certain obligations under agreements with third parties. At September 30, 2017 and December 31, 2016 these off-balance sheet arrangements were not material to our interim unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Recent Accounting Guidance

See Note 2 "Recent Accounting Guidance" to the interim unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for a summary of recent accounting guidance.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical accounting policies are those accounting policies that can have a significant impact on the presentation of our financial condition and results of operations, and that require the use of complex and subjective estimates based upon past experience and management’s judgment. Because of the uncertainty inherent in such estimates, actual results may differ materially from these estimates. The policies applied in preparing our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q are those that management believes are the most dependent on estimates and assumptions. There have been no material changes to our critical accounting policies and estimates previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016. For a description of our critical accounting policies and estimates as well as a listing of our significant accounting policies, see “Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” and “Note 3 - Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the market risks previously disclosed in our financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

As required by Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (the “Exchange Act”), the Company carried out an evaluation, under the supervision and with the participation of management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on the foregoing, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2017.

Changes in internal control over financial reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the three months ended September 30, 2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are from time to time party to legal proceedings that arise in the ordinary course of business. We are not involved in any litigation other than that which has arisen in the ordinary course of business. We do not expect that any currently pending lawsuits will have a material effect on us.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors from the risks previously reported in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table summarizes the Company's share repurchase activity through the share repurchase program for the three months ended September 30, 2017:

(in millions, except per share data)
Month	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs1	Approximate Dollar Value of Shares That May Yet Be Purchased Under Our Share Repurchase Agreement1
July 2017	—	—		—	$	666.7
August 2017	1.7	$	29.05	1.7	616.6
September 2017	—	—		—	616.6
Total	1.7	$	29.05	1.7	$	616.6

¹ Shares were repurchased through the $675.0 million share repurchase program announced in March 2017. We repurchased $50.1 million of our common shares during the three months ended September 30, 2017, and $8.3 million in prior periods. At September 30, 2017, the Company had remaining authorization to repurchase $616.6 million of shares. There is no expiration date on the share repurchase program.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

51

ITEM 6. EXHIBITS

EXHIBIT NO.	DESCRIPTION OF EXHIBITS
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1††	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2††	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101†	INS - XBRL Instance Document
101†	SCH - XBRL Taxonomy Extension Schema Document
101†	CAL - XBRL Taxonomy Extension Calculation Linkbase Document
101†	DEF - XBRL Taxonomy Extension Definition Linkbase Document
101†	LAB - XBRL Taxonomy Extension Label Linkbase Document
101†	PRE - XBRL Taxonomy Extension Presentation Linkbase Document
†	In accordance with Rule 406T of Regulation S-T, the information in these exhibits is furnished and deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Exchange Act of 1934, and otherwise is not subject to liability under these sections.
††	This certificate is being furnished solely to accompany the report pursuant to 18 U.S.C. Section 1350 and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

52

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.

	AXALTA COATING SYSTEMS LTD.
Date: October 26, 2017	By: /s/ Charles W. Shaver
	Charles W. Shaver
	Chairman of the Board and Chief Executive Officer
Date: October 26, 2017	By: /s/ Robert W. Bryant
	Robert W. Bryant
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)
Date: October 26, 2017	By: /s/ Sean M. Lannon
	Sean M. Lannon
	Vice President, Corporate Finance and Global Controller
	(Principal Accounting Officer)

53

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Charles W. Shaver, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Axalta Coating Systems Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 26, 2017

By:	/s/ Charles W. Shaver
Name:	Charles W. Shaver
Title:	Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Robert W. Bryant, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Axalta Coating Systems Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 26, 2017

By:	/s/ Robert W. Bryant
Name:	Robert W. Bryant
Title:	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of CEO Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Charles W. Shaver, Chairman of the Board and Chief Executive Officer of Axalta Coating Systems Ltd. (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) The Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2017 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 26, 2017

By:	/s/ Charles W. Shaver
Name:	Charles W. Shaver
Title:	Chairman of the Board and Chief Executive Officer

This certification accompanies this report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to liability pursuant to that section. The certification shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification of CFO Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Robert W. Bryant, Executive Vice President and Chief Financial Officer of Axalta Coating Systems Ltd. (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) The Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2017 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 26, 2017

By:	/s/ Robert W. Bryant
Name:	Robert W. Bryant
Title:	Executive Vice President and Chief Financial Officer

This certification accompanies this report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to liability pursuant to that section. The certification shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 20, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Axalta Coating Systems Ltd.
Trading Symbol	AXTA
Entity Central Index Key	0001616862
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		243,630,429

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net sales	$ 1,091.8	$ 1,020.6	$ 3,188.1	$ 3,041.4
Other revenue	4.5	5.7	16.5	18.7
Total revenue	1,096.3	1,026.3	3,204.6	3,060.1
Cost of goods sold	702.5	630.4	2,033.6	1,885.8
Selling, general and administrative expenses	246.4	242.3	717.8	699.1
Venezuela deconsolidation charge	0.0	0.0	70.9	0.0
Research and development expenses	16.6	14.9	48.6	41.6
Amortization of acquired intangibles	26.8	21.3	72.3	61.8
Income from operations	104.0	117.4	261.4	371.8
Interest expense, net	37.7	42.9	109.1	140.8
Other expense, net	7.9	87.4	27.5	128.2
Income (loss) before income taxes	58.4	(12.9)	124.8	102.8
Provision (benefit) for income taxes	2.1	(7.5)	21.5	23.1
Net income (loss)	56.3	(5.4)	103.3	79.7
Less: Net income attributable to noncontrolling interests	1.4	1.2	5.1	3.7
Net income (loss) attributable to controlling interests	$ 54.9	$ (6.6)	$ 98.2	$ 76.0
Basic net income (loss) per share (dollars per share)	$ 0.23	$ (0.03)	$ 0.41	$ 0.32
Diluted net income (loss) per share (dollars per share)	$ 0.22	$ (0.03)	$ 0.40	$ 0.31
Basic weighted average shares outstanding (in shares)	240.7	238.5	240.5	237.8
Diluted weighted average shares outstanding (in shares)	245.8	238.5	246.2	244.2

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 56.3	$ (5.4)	$ 103.3	$ 79.7
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	21.5	14.6	89.3	16.7
Unrealized gain (loss) on securities	0.2	0.6	(0.1)	0.3
Unrealized gain (loss) on derivatives	0.2	1.7	(1.1)	0.0
Unrealized gain (loss) on pension plan obligations	(0.3)	0.1	9.0	0.2
Other comprehensive income, before tax	21.6	17.0	97.1	17.2
Income tax (benefit) related to items of other comprehensive income	0.6	0.0	(2.0)	0.0
Other comprehensive income, net of tax	22.2	17.0	95.1	17.2
Comprehensive income	78.5	11.6	198.4	96.9
Less: Comprehensive income attributable to noncontrolling interests	1.4	2.2	6.1	4.5
Comprehensive income attributable to controlling interests	$ 77.1	$ 9.4	$ 192.3	$ 92.4

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 588.9	$ 535.4
Restricted cash	3.1	2.7
Accounts and notes receivable, net	889.0	801.9
Inventories	624.4	529.7
Prepaid expenses and other	68.7	50.3
Total current assets	2,174.1	1,920.0
Property, plant and equipment, net	1,386.1	1,315.7
Goodwill	1,258.3	964.1
Identifiable intangibles, net	1,445.9	1,130.3
Other assets	548.2	536.1
Total assets	6,812.6	5,866.2
Current liabilities:
Accounts payable	545.1	474.2
Current portion of borrowings	37.8	27.9
Other accrued liabilities	447.5	440.0
Total current liabilities	1,030.4	942.1
Long-term borrowings	3,865.2	3,236.0
Accrued pensions	288.1	249.1
Deferred income taxes	162.1	160.2
Other liabilities	32.5	32.2
Total liabilities	5,378.3	4,619.6
Commitments and contingencies
Shareholders’ equity
Common shares, $1.00 par, 1,000.0 shares authorized, 243.6 and 240.5 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	242.1	239.3
Capital in excess of par	1,341.9	1,294.3
Retained earnings (Accumulated deficit)	40.1	(58.1)
Treasury shares, at cost	(58.4)	0.0
Accumulated other comprehensive loss	(256.3)	(350.4)
Total Axalta shareholders’ equity	1,309.4	1,125.1
Noncontrolling interests	124.9	121.5
Total shareholders’ equity	1,434.3	1,246.6
Total liabilities and shareholders’ equity	$ 6,812.6	$ 5,866.2

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common shares authorized (in shares)	1,000,000,000.0	1,000,000,000.0
Common shares issued (in shares)	243,600,000	240,500,000
Common shares outstanding (in shares)	243,600,000	240,500,000

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net income	$ 103.3	$ 79.7
Adjustment to reconcile net income to cash used for operating activities:
Depreciation and amortization	255.9	235.8
Amortization of deferred financing costs and original issue discount	6.1	14.6
Debt extinguishment and refinancing related costs	13.0	84.2
Deferred income taxes	(21.7)	(15.0)
Realized and unrealized foreign exchange (gains) losses, net	(1.4)	30.6
Stock-based compensation	30.5	31.6
Impairment of Real Estate and Long Lived Operating Assets	7.6	10.5
Venezuela deconsolidation charge	70.9	0.0
Other non-cash, net	6.9	(10.4)
Changes in operating assets and liabilities:
Trade accounts and notes receivable	(44.5)	(103.8)
Inventories	(37.6)	0.1
Prepaid expenses and other	(79.9)	(31.2)
Accounts payable	34.2	14.0
Other accrued liabilities	(27.8)	0.4
Other liabilities	(9.1)	(9.8)
Cash provided by operating activities	306.4	331.3
Investing activities:
Business acquisitions (net of cash acquired)	(559.3)	(103.5)
Purchase of property, plant and equipment	(87.2)	(95.3)
Reduction of cash due to Venezuela deconsolidation	(4.3)	0.0
Purchase of intangibles	(0.5)	(3.9)
Other investing activities	4.6	(2.4)
Cash used for investing activities	(646.7)	(205.1)
Financing activities:
Proceeds from long term borrowings	456.4	1,377.6
Payments on short-term borrowings	(7.0)	(7.2)
Payments on long-term borrowings	(12.4)	(1,375.5)
Financing-related costs	(9.9)	(78.3)
Dividends paid to noncontrolling interests	(2.7)	(3.0)
Purchase of treasury stock	(58.4)	0.0
Proceeds from option exercises	19.9	13.8
Deferred acquisition-related consideration	(5.2)	0.0
Other financing activities	0.0	(0.2)
Cash provided by (used for) financing activities	380.7	(72.8)
Increase in cash	40.4	53.4
Effect of exchange rate changes on cash	13.5	(10.0)
Cash at beginning of period	538.1	487.7
Cash at end of period	592.0	531.1
Cash and cash equivalents	588.9	528.3
Restricted cash	$ 3.1	$ 2.8

XML

Basis of Presentation of the Condensed Consolidated Financial Statements

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and nine months ended September 30, 2017 and 2016, 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, 2016. 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, 2017 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, formed at the direction of an affiliate of The Carlyle Group L.P. ("Carlyle"), 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.

Venezuela Deconsolidation

During the three months ended June 30, 2017, we deconsolidated our Venezuelan subsidiary from our consolidated financial statements and began accounting for our investment in our 100% owned Venezuelan subsidiary using the cost method of accounting. See Note 21 for additional information.

Accounting Standards - Recently Adopted

At December 31, 2016, we elected to early adopt Accounting Standards Update ("ASU") 2016-18, "Statement of Cash Flows: Restricted Cash", which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. As a result, the condensed consolidated financial statements herein have been retroactively adjusted. There was no change in net cash used for investing activities for the nine months ended September 30, 2016.

At December 31, 2016, we elected to early adopt ASU 2016-09, "Stock Compensation", which provides various areas of simplification surrounding the accounting for stock-based compensation and resulted in retrospective changes to our previously issued condensed consolidated financial statements. The new standard resulted in the recognition of excess tax benefits in our provision for income taxes. Upon adoption, this resulted in a cumulative effect of an accounting change reclassification of $43.9 million to retained earnings (accumulated deficit) on the balance sheet as of January 1, 2016, as reflected in Note 19. It also resulted in a decrease to the tax provision and corresponding increase to net income of $6.4 million and $10.8 million for the previously reported condensed consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2016, respectively. The effect on our dilutive shares is disclosed in Note 11.

We retrospectively applied the changes in presentation to the condensed consolidated statements of cash flows and no longer classify excess tax benefits or employee taxes paid for shares withheld as financing activities, which increased net cash provided by operating activities and decreased net cash used in financing activities by $7.5 million for the nine months ended September 30, 2016.

Correction of Immaterial Errors to Prior Period Financial Statements

During the quarter ended June 30, 2017, the Company identified and corrected errors that affected previously-issued consolidated and condensed financial statements. Based on an analysis of Accounting Standards Codification (“ASC”) 250 - Accounting Changes and Error Corrections (“ASC 250”), Staff Accounting Bulletin 99 - Materiality (“SAB 99”) and Staff Accounting Bulletin 108 - Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company determined that these corrections were immaterial to the previously-issued financial statements. However, given the significance of the cumulative adjustments on the financial results, we have revised, and will revise annual and interim periods in future filings, our historical presentation of certain amounts in the condensed consolidated financial statements which are described further below.

Revenue Corrections

The Company recognizes revenue from the sale of products to its customers when risk of loss and ownership of the product transfers to the customer.  Ownership transfers either upon shipment of the product or when the product is delivered. In regards to Axalta’s refinish end-market, risk of loss passes upon the sale to its distribution customers.  Subsequent to the sale to distribution customers, when the distribution customers sell the products to collision repair body shops, additional rebates or further pricing concessions can be given to our distribution customers and certain collision repair body shops. The Company previously recorded these additional rebates and pricing concessions at the time of sale from the distributor to the collision repair body shops.  The Company has concluded those rebates and pricing concessions should have been estimated and recorded as a reduction to net sales upon the sale to our distribution customers.

The Company concluded that its accounting policy for the sale to distributors is appropriate as the sales price is fixed or determinable at the time ownership transfers to these distributors, based on the Company’s ability to make a reasonable estimate of future certain pricing or rebates concessions at the time of shipment.

The Company has corrected the errors in the timing of revenue recognition by estimating those additional rebates and pricing concessions at the time of sale to distribution customers and reducing net sales by $2.8 million ($2.3 million after tax) and $2.7 million ($2.3 million after tax) for the three and nine months ended September 30, 2016, respectively. The Company will also revise historical annual periods by reducing net sales by $4.7 million ($3.0 million after tax), $3.3 million ($2.1 million after tax), $5.1 million ($3.1 million after tax) and $4.2 million ($2.8 million after tax) for the periods ended December 31, 2016, 2015, 2014 and 2013, respectively. Diluted earnings per share was reduced by $0.01 for the three and nine months ended September 30, 2016 and the years ended December 31, 2016, 2015, 2014 and 2013, respectively. The after-tax impacts noted above had the equivalent impacts on our condensed consolidated statements of comprehensive income for the respective periods. The cumulative impact on the condensed consolidated balance sheet at December 31, 2016 resulted in increases of $22.4 million, $3.1 million, $8.3 million and $11.0 million to other accrued liabilities, goodwill, other assets and accumulated deficit, respectively, as a result of these prior period corrections. Amounts had no impact on the Company’s total cash flows from operations as reported within the historical condensed consolidated statements of cash flows.

XML

Recent Accounting Guidance

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Recent Accounting Guidance

RECENT ACCOUNTING GUIDANCE

Accounting Guidance Issued But Not Yet Adopted

In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. We are in the process of working with our actuarial specialists in assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.

In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test requiring an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified in our reporting units.

In 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. At a minimum, total assets and total liabilities will increase in the period of adoption.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. This standard was initially intended to be effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date", which delayed the previous effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We continue to progress in the quantification of the impacts that this standard will have on our consolidated financial statements and have refined certain estimates that will be used in order to calculate such impacts, although the final impact remains unknown. We will provide further detail as we progress in our quantification, as well as our determination of the transition method to be adopted. We have reviewed our sales contracts and practices as compared to the new guidance and continue to make progress in our implementation plan as well as our assessment of procedural and policy requirements related to the provisions of this standard. In addition to the expanded disclosures regarding revenue, this guidance will result in the acceleration of revenue recognition in certain arrangements primarily within our Transportation Coatings segment in which we determine effective control over inventory has transferred to the customer upon delivery as compared to consumption under historical consignment arrangements.

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 have continued to assess the potential impact of the revised guidance on our financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters.

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Acquisitions

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

Acquisition of The Valspar Corporation's North American Industrial Wood Business

On June 1, 2017, the Company completed its acquisition from The Valspar Corporation ("Valspar") of certain assets constituting its North American Industrial Wood Coatings business (the "Industrial Wood" business), for a purchase price of $420.0 million, subject to preliminary working capital adjustments of $10.5 million (the "Industrial Wood Acquisition"). The Industrial Wood Acquisition was funded through the refinancing of our Dollar Term Loans discussed further at Note 15.

The Industrial Wood business is one of the leading providers of coatings for original equipment manufacturers ("OEM") and aftermarket industrial wood markets, including building products, cabinets, flooring and furniture, in North America. The Industrial Wood Acquisition was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date.

At September 30, 2017, we have not finalized the purchase accounting related to the Industrial Wood Acquisition and these amounts represent preliminary values. The allocation of the purchase price may be modified up to one year from the date of the acquisition as more information is obtained about the fair value of assets acquired and liabilities assumed. After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.5 million, which was comprised of the following:

	June 1, 2017 (As Initially Reported)			Measurement Period Adjustments			June 1, 2017 (As Adjusted)
Accounts and notes receivable—trade	$	23.3		$	0.1		$	23.4
Inventories	24.9			(0.2		)	24.7
Prepaid expenses and other	0.2			—			0.2
Property, plant and equipment	23.0			—			23.0
Identifiable intangibles	254.2			3.9			258.1
Accounts payable	(22.4		)	0.2			(22.2		)
Other accrued liabilities	(5.1		)	(0.2		)	(5.3		)
Net assets acquired before goodwill on acquisition	298.1			3.8			301.9
Goodwill on acquisition	132.6			(4.0		)	128.6
Net assets acquired	$	430.7		$	(0.2	)	$	430.5

Goodwill was recognized as the excess of the purchase price over the net identifiable assets recognized. The goodwill is primarily attributed to our assembled workforce and the anticipated future economic benefits and is recorded within our industrial end-market in our Performance Coatings segment. The goodwill recognized at September 30, 2017 that is expected to be deductible for income tax purposes is $128.6 million.

The Company incurred and expensed acquisition-related transaction costs of the Industrial Wood Acquisition of $5.3 million, included within selling, general and administrative expense on the condensed consolidated statements of operations for the nine months ended September 30, 2017.

The fair value associated with definite-lived intangible assets was $258.1 million, comprised of $34.5 million in technology, $8.1 million in trademarks, $202.0 million in customer relationships and $13.5 million in favorable contracts. The definite-lived intangible assets will be amortized over an average term of approximately 19 years.

Supplemental Pro Forma Information

The Company's net sales and income before income taxes for the nine months ended September 30, 2017 include sales of $86.7 million in net sales and a loss of $1.7 million to income before income taxes related to the Industrial Wood business. The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016:

	For the nine months ended
(in millions, except per share data)	September 30, 2017		September 30, 2016
Net sales	$	3,289.4	$	3,205.9
Net income	$	108.8	$	78.4
Net income attributable to controlling interests	$	103.7	$	74.7
Net income per share (Basic)	$	0.43	$	0.31
Net income per share (Diluted)	$	0.42	$	0.31

The 2017 supplemental pro forma net income was adjusted to exclude $5.3 million ($3.3 million, net of pro forma income tax impact) of acquisition-related costs incurred in 2017 and $2.3 million ($1.4 million, net of pro forma income tax impact) of non-recurring expense related to the fair market value adjustment to acquisition date inventory. The unaudited pro forma condensed consolidated information does not necessarily reflect the actual results that would have occurred had the acquisition taken place on January 1, 2016, nor is it meant to be indicative of future results of operations of the combined companies under the ownership and operation of the Company.

Other Acquisitions

During the nine months ended September 30, 2017, we acquired 100% of six businesses ("2017 Acquisitions"), including the acquisition of Industrial Wood. The other five acquisitions included two North American and three European businesses which have operations in both our refinish and industrial end-markets, within our Performance Coatings segment. All of these acquisitions were accounted for as business combinations and the overall impacts to our condensed consolidated financial statements were not considered to be material, either individually or in the aggregate. The fair value associated with definite-lived intangible assets from the 2017 Acquisitions was $315.6 million, comprised of $46.8 million in technology, $18.4 million in trademarks, $234.8 million in customer relationships and $15.6 million in other intangibles primarily consisting of favorable contracts. The total fair value of consideration paid or payable on the 2017 Acquisitions was $565.0 million, including acquisition date fair value of contingent consideration of $5.7 million, respectively.

At September 30, 2017, we have not finalized the purchase accounting related to the 2017 Acquisitions and these amounts represent preliminary values. For our business acquisitions completed after September 30, 2016, including the 2017 Acquisitions, we expect to finalize our purchase accounting during the respective measurement periods, which will be no later than one year following their applicable closing dates.

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Goodwill and Identifiable Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill

The following table shows changes in the carrying amount of goodwill from December 31, 2016 to September 30, 2017 by reportable segment:

	Performance Coatings			Transportation Coatings		Total
December 31, 2016	$	889.4		$	74.7	$	964.1
Goodwill from acquisitions	204.1			—		204.1
Purchase accounting adjustments	(10.8		)	—		(10.8		)
Foreign currency translation	94.2			6.7		100.9
September 30, 2017	$	1,176.9		$	81.4	$	1,258.3

Identifiable Intangible Assets

The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:

September 30, 2017	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted average amortization periods (years)
Technology	$	494.7	$	(200.1	)	$	294.6	10.5
Trademarks - indefinite-lived	297.4		—			297.4		Indefinite
Trademarks - definite-lived	77.1		(15.9		)	61.2		14.7
Customer relationships	941.8		(164.0		)	777.8		19.0
Other	16.6		(1.7		)	14.9		4.4
Total	$	1,827.6	$	(381.7	)	$	1,445.9

December 31, 2016	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted average amortization periods (years)
Technology	$	417.1	$	(153.6	)	$	263.5	10.2
Trademarks—indefinite-lived	273.2		—			273.2		Indefinite
Trademarks—definite-lived	55.0		(11.4		)	43.6		14.8
Customer relationships	672.6		(123.3		)	549.3		18.7
Other	2.4		(1.7		)	0.7		4.6
Total	$	1,420.3	$	(290.0	)	$	1,130.3

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2017 and each of the succeeding five years is:

Remainder of 2017	$	27.9
2018	$	108.1
2019	$	107.8
2020	$	107.3
2021	$	105.4
2022	$	76.1

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Restructuring

9 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

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, 2017, we incurred restructuring costs of $6.2 million and $7.6 million, respectively. During the three and nine months ended September 30, 2016, we incurred restructuring costs of $15.6 million and $21.2 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 the balance sheet date.

The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2016 to September 30, 2017:

	2017 Activity
Balance at December 31, 2016	$	66.1
Expense recorded	7.6
Payments made	(24.2		)
Foreign currency impacts	6.2
Venezuela deconsolidation impact	(1.5		)
Balance at September 30, 2017	$	54.2

Restructuring charges incurred during the fourth quarter ended December 31, 2016 included actions to reduce operational costs through activities to rationalize our manufacturing footprint. The impact to earnings from accelerated depreciation related to these manufacturing assets for the nine months ended September 30, 2017 was $4.3 million. During the three and nine months ended September 30, 2017, we recorded impairment losses of $4.4 million and $7.6 million, respectively, associated with these manufacturing facilities based on market price estimates recorded within other expense, net.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Leases

During the three months ended September 30, 2017, we determined that a previous build-to-suit lease arrangement was to be treated as a sale-leaseback financing. The lessor's building costs will be depreciated over an estimated useful life, consistent with our other sale-leaseback financing identified during the year ended December 31, 2016, beginning at the commencement of the rental terms, at which point such lease assets recorded in property, plant and equipment had a corresponding offset within long-term borrowings. The table below reflects the total remaining cash payments related to both transactions during the rental term as of September 30, 2017:

	Sale-leaseback obligations
Remainder of 2017	$	1.3
2018	5.4
2019	5.5
2020	5.6
2021	5.6
Thereafter	91.9
Total minimum payments	$	115.3

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 against us, or awards against DuPont for which we assumed the liabilities through the Acquisition. All of the above matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the lawsuits at this time.

The potential effects, if any, on the 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.

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Long-term Employee Benefits

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

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, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Components of net periodic benefit cost:
Net periodic benefit cost:
Service cost	$	2.2		$	2.4		$	6.4		$	7.5
Interest cost	3.3			3.7			10.0			11.5
Expected return on plan assets	(3.7		)	(3.0		)	(10.7		)	(9.6		)
Amortization of actuarial loss, net	0.3			0.1			1.1			0.2
Net periodic benefit cost	$	2.1		$	3.2		$	6.8		$	9.6

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Stock-based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

STOCK-BASED COMPENSATION

During the three and nine months ended September 30, 2017, we recognized $9.2 million and $30.5 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 $2.8 million and $9.1 million for the three and nine months ended September 30, 2017, respectively. Forfeitures are recorded in the period they occur.

During the three and nine months ended September 30, 2016, we recognized $10.0 millionand $31.6 million, respectively, in stock-based compensation expense which was allocated to cost 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.

2017 Activity

In 2017, we granted non-qualified service-based stock options, restricted stock awards, restricted stock units, performance stock awards and performance share units to certain employees and directors. All awards were granted under the Company's 2014 Incentive Award Plan (the "2014 Plan"). A summary of stock option award activity as of and for the nine months ended September 30, 2017 is presented below.

Stock Options	Awards/Units (in millions)		Weighted- Average Exercise Price		Aggregate Intrinsic Value  (in millions)		Weighted Average Remaining Contractual Life (years)
Outstanding at January 1, 2017	9.6		$	14.40
Granted	0.9		$	29.56
Exercised	(1.9	)	$	10.76
Forfeited	(0.1	)	$	25.61
Outstanding at September 30, 2017	8.5		$	16.58
Vested and expected to vest at September 30, 2017	8.5		$	16.58	$	108.9	6.77
Exercisable at September 30, 2017	6.6		$	13.33	$	105.1	6.23

Cash received by the Company upon exercise of options for the nine months ended September 30, 2017 was $19.9 million. Tax benefits on these exercises were $12.4 million.

At September 30, 2017, there is $5.8 million of unrecognized expense relating to unvested stock options that is expected to be amortized over a weighted average period of 2.0 years.

Restricted Stock Awards and Restricted Stock Units	Awards (millions)		Weighted-Average Fair Value
Outstanding at January 1, 2017	2.3		$	29.18
Granted	0.7		$	30.21
Vested	(0.9	)	$	30.05
Forfeited	(0.1	)	$	26.77
Outstanding at September 30, 2017	2.0		$	29.27

Tax benefits on the vesting of restricted stock during the nine months ended September 30, 2017 were $9.8 million.

At September 30, 2017, there is $23.4 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 2.0 years.

Performance Stock Awards and Performance Share Units	Awards (millions)	Weighted-Average Fair Value
Outstanding at January 1, 2017	0.3	$	24.74
Granted	0.3	$	38.11
Vested	—	$	—
Forfeited	—	$	—
Outstanding at September 30, 2017	0.6	$	31.16

At September 30, 2017, there is $13.2 million of unamortized expense relating to unvested performance stock awards and performance share units that is expected to be amortized over a weighted average period of 2.1 years.

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Other Expense, Net

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Other (Income) Expense, Net

OTHER EXPENSE, NET

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Foreign exchange losses, net	$	3.5		$	4.5	$	8.3		$	30.0
Impairments of property	4.4			—		7.6			10.5
Debt extinguishment and refinancing related costs	0.6			81.9		13.0			84.2
Other miscellaneous (income) expense, net	(0.6		)	1.0		(1.4		)	3.5
Total	$	7.9		$	87.4	$	27.5		$	128.2

Our Venezuelan subsidiary contributed to the net exchange losses for all periods leading up to the deconsolidation of the entity during the three months ended June 30, 2017. These losses for the nine months ended September 30, 2017 were $1.8 million. These losses for the three and nine months ended September 30, 2016 were $1.2 million and $23.9 million, respectively.

Debt extinguishment and refinancing related costs incurred during the nine months ended September 30, 2017 include third-party fees incurred in conjunction with the refinancing of the 2023 Dollar Term Loans. Debt extinguishment and refinancing related costs incurred during the three and nine months ended September 30, 2016 include redemption premiums on our 2021 Dollar Senior Notes and 2021 Euro Senior Notes as well as the unamortized (or pro-rata unamortized) deferred financing costs and original issue discounts associated with the debt extinguishment. See Note 15 for further information surrounding these debt-related transactions.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Our effective income tax rates for the nine months ended September 30, 2017 and 2016 are as follows:

	Nine Months Ended September 30,
	2017		2016
Effective Tax Rate	17.2	%	22.5	%

The lower effective tax rate for the nine months ended September 30, 2017 was primarily due to forecasted mix of earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate as compared to September 30, 2016. The pre-tax charge of $70.9 million related to the deconsolidation of our Venezuelan subsidiary for 2017, which is non-deductible, was largely offset by the prior year impact of pre-tax losses on debt extinguishment and other financing-related costs incurred in connection with the refinancing activities and voluntary prepayments where a tax benefit for a portion of the losses were not expected to be realized. These adjustments were partially offset by the favorable impact of the benefits associated with current year excess tax benefits related to stock-based compensation of $11.6 million compared to $10.8 million for the nine months ended September 30, 2017 and 2016, respectively.

The effective tax rate for the nine months ended September 30, 2017 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 current year excess tax benefits related to stock-based compensation. These adjustments were offset by the unfavorable impact of the Venezuelan deconsolidation charge, pre-tax losses attributable to jurisdictions where a tax benefit is not expected to be realized, non-deductible expenses and interest and currency exchange losses.

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Earnings (Loss) Per Common Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings (Loss) Per Common Share

NET INCOME (LOSS) PER COMMON SHARE

Basic net income per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the hypothetical exercise of outstanding stock options and vesting of restricted shares and performance shares. A reconciliation of our basic and diluted net income per common share is as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions, except per share data)	2017		2016(1)			2017		2016(1)
Net income (loss) to common shareholders	$	54.9	$	(6.6	)	$	98.2	$	76.0
Basic weighted average shares outstanding	240.7		238.5			240.5		237.8
Diluted weighted average shares outstanding	245.8		238.5			246.2		244.2
Net income (loss) per common share:
Basic net income (loss) per share	$	0.23	$	(0.03	)	$	0.41	$	0.32
Diluted net income (loss) per share	$	0.22	$	(0.03	)	$	0.40	$	0.31

⁽¹⁾ Net income per common share for the nine months ended September 30, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 1, which increased diluted weighted average shares outstanding by 1.8 million shares. Based on the fact that diluted weighted average shares outstanding are equal to basic weighted average shares outstanding in periods of loss, there was no impact of this adoption on diluted weighted average shares outstanding during the three months ended September 30, 2016.

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, 2017 were 1.9 million and 1.8 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, 2016 were 13.0 million and 1.4 million, respectively.

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Accounts and Notes Receivable, Net

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Accounts and Notes Receivable, Net

ACCOUNTS AND NOTES RECEIVABLE, NET

	September 30, 2017		December 31, 2016
Accounts receivable - trade, net	$	766.6	$	640.4
Notes receivable	26.6		68.7
Other	95.8		92.8
Total	$	889.0	$	801.9

Accounts and notes receivable are carried at amounts that approximate fair value. Accounts receivable - trade, net are net of allowances of $16.6 million and $13.7 million at September 30, 2017 and December 31, 2016, respectively. Bad debt expense, within selling, general and administration expenses for the three and nine months ended September 30, 2017, was $0.9 million and $3.3 million, respectively, and $0.6 million and $1.7 million for the three and nine months ended September 30, 2016, respectively.

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Inventories

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

	September 30, 2017		December 31, 2016
Finished products	$	360.7	$	315.2
Semi-finished products	97.4		87.5
Raw materials and supplies	166.3		127.0
Total	$	624.4	$	529.7

Stores and supplies inventories of $21.1 million and $20.2 million at September 30, 2017 and December 31, 2016, respectively, were valued under the weighted average cost method.

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Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, Net

PROPERTY, PLANT AND EQUIPMENT, NET

Depreciation expense amounted to $43.3 million and $131.3 million for the three and nine months ended September 30, 2017, respectively, and $45.0 million and $130.6 million for the three and nine months ended September 30, 2016, respectively.

	September 30, 2017			December 31, 2016
Property, plant and equipment	$	2,147.9		$	1,933.0
Accumulated depreciation	(761.8		)	(617.3		)
Property, plant and equipment, net	$	1,386.1		$	1,315.7

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Borrowings

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

Borrowings are summarized as follows:

	September 30, 2017			December 31, 2016
2024 Dollar Term Loans	$	1,995.0		$	—
2023 Dollar Term Loans	—			1,545.0
2023 Euro Term Loans	467.1			417.6
2024 Dollar Senior Notes	500.0			500.0
2024 Euro Senior Notes	394.2			349.7
2025 Euro Senior Notes	529.5			469.8
Short-term and other borrowings	67.2			39.8
Unamortized original issue discount	(9.6		)	(10.0		)
Unamortized deferred financing costs	(40.4		)	(48.0		)
	$	3,903.0		$	3,263.9
Less:
Short term borrowings	$	13.1		$	8.3
Current portion of long-term borrowings	24.7			19.6
Long-term debt	$	3,865.2		$	3,236.0

Senior Secured Credit Facilities, as amended

On February 3, 2014 (the "Second Amendment Effective Date"), Axalta Coating Systems Dutch B B.V. ("Dutch B B.V."), as "Dutch Borrower", and its indirect 100% owned subsidiary, Axalta Coating Systems U.S. Holdings Inc. ("Axalta US Holdings"), as "U.S. Borrower", executed the second amendment to the Credit Agreement (the "Second Amendment"). The Second Amendment (i) converted all of the outstanding Dollar Term Loans ($2,282.8 million) into a new class of term loans (the "2020 Dollar Term Loans"), and (ii) converted all of the outstanding Euro Term Loans (€397.0 million) into a new class of term loans (the "2020 Euro Term Loans" and, together with the 2020 Dollar Term Loans, the "2020 Term Loans").

On December 15, 2016 (the "Fourth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fourth amendment to the Credit Agreement (the "Fourth Amendment"). The Fourth Amendment (i) converted all of the outstanding 2020 Dollar Term Loans ($1,775.3 million) into a new tranche of term loans issued at par with principal of $1,545.0 million (the "2023 Dollar Term Loans"), (ii) converted all of the outstanding 2020 Euro Term Loans (€199.0 million) into a new tranche of term loans issued at par with principal of €400.0 million (the "2023 Euro Term Loans" and, together with the 2023 Dollar Term Loans, the "2023 Term Loans").

On June 1, 2017 (the "Fifth Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the fifth amendment to the Credit Agreement (the "Fifth Amendment"). The Fifth Amendment converted all of the outstanding 2023 Dollar Term Loans ($1,541.1 million) into a new tranche of term loans with principal of $2,000.0 million (the "2024 Dollar Term Loans"), together with the 2023 Euro Term Loans, the "Current Terms Loans", and with the Revolving Credit Facility (as defined herein, the "Senior Secured Credit Facilities"). The 2024 Dollar Term Loans were issued at 99.875% of par, or a $2.5 million discount.

Interest was and is payable quarterly on both the 2023 Term Loans and Current Term Loans.

The 2024 Dollar Term Loans are subject to a floor of zero plus an applicable rate of 2.00% per annum for Eurocurrency Rate Loans as defined in the credit agreement governing the Senior Secured Credit Facilities (the "Credit Agreement") and 1.00% per annum for Base Rate Loans as defined in the Credit Agreement.

Prior to the Fifth Amendment, interest on the 2023 Dollar Term Loans was subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such 2023 Dollar Term Loans was 2.50% per annum for Eurocurrency Rate Loans as defined in the Credit Agreement and 1.50% per annum for Base Rate Loans as defined in the Credit Agreement. The 2023 Euro Term Loans are also subject to a floor of 0.75%, plus an applicable rate after the Fourth Amendment Effective Date. The applicable rate for such New Euro Term Loans is 2.25% per annum for Eurocurrency Rate Loans. The 2023 Euro Term Loans may not be Base Rate Loans.

Prior to the Fourth Amendment, interest on the 2020 Dollar Term Loans was subject to a floor of 1.00%, plus an applicable rate. The applicable rate for such 2020 Dollar Term Loans was 3.00% per annum for Eurocurrency Rate Loans and 2.00% per annum for Base Rate Loans. The 2020 Euro Term Loans were also subject to a floor of 1.00%, plus an applicable rate. The applicable rate for such 2020 Euro Term Loans was 3.25% per annum for Eurocurrency Rate Loans. The 2020 Euro Term Loans were not to be Base Rate Loans. The applicable rate for both Eurocurrency Rate Loans as well as Base Rate Loans was subject to a further 25 basis point reduction if the Total Net Leverage Ratio was less than or equal to 4.50:1.00. During the third quarter of 2014, our Total Net Leverage Ratio was less than 4.50:1.00. Consequently, the applicable rates were changed to 2.75% for the 2020 Dollar Term Loans and 3.00% for the 2020 Euro Term Loans through the Fourth Amendment Effective Date.

Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $75.0 million annually, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Leverage Ratio falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow.

The Senior Secured Credit Facilities are secured by substantially all assets of Axalta Coating Systems Dutch A B.V. ("Dutch A B.V.") and the guarantors. The 2023 Euro Term Loans mature on February 1, 2023 and the 2024 Dollar Term Loans mature on June 1, 2024. Principal is paid quarterly on both the 2023 Euro Term Loans and the 2024 Dollar Term Loans based on 1% per annum of the original principal amount outstanding on the most recent amendment date with the unpaid balance due at maturity.

We are subject to customary negative covenants in addition to the First Lien Leverage Ratio financial covenant for purposes of determining any Excess Cash Flow mandatory payment. Further, the Senior Secured Credit Facilities, among other things, include customary restrictions (subject to certain exceptions) on the Company's ability to incur certain indebtedness, grant certain liens, make certain investments, declare or pay certain dividends, or repurchase shares of the Company's common stock. As of September 30, 2017, the Company is in compliance with all covenants under the Senior Secured Credit Facilities.

Revolving Credit Facility

On August 1, 2016 (the "Third Amendment Effective Date"), Dutch B B.V. and Axalta US Holdings executed the third amendment to the Credit Agreement (the "Third Amendment"). The Third Amendment impacted the revolving credit facility under the Senior Secured Credit Facilities (the "Revolving Credit Facility") by (i) extending the maturity of the Revolving Credit Facility to five years from the Third Amendment Effective Date, or August 1, 2021, provided that such date will be accelerated to the date that is 91 days prior to the maturity of the term loans borrowed under the Credit Agreement if the maturity of such term loans precedes the maturity of the Revolving Credit Facility, (ii) decreasing the applicable interest margins, and (iii) amending the financial covenant applicable to the Revolving Credit Facility to be applicable only when greater than 30% (previously 25%) of the Revolving Credit Facility (including letters of credit not cash collateralized to at least 103%) is outstanding at the end of the fiscal quarter. If such conditions are met, the First Lien Net Leverage Ratio (as defined by the Credit Agreement) at the end of the quarter is required to be greater than 5.50:1.00. At September 30, 2017, the financial covenant is not applicable as there were no borrowings.

Under the Third Amendment, interest on any outstanding borrowings under the Revolving Credit Facility is subject to a floor of zero for Adjusted Eurocurrency Rate Loans (as defined in the Credit Agreement) plus an applicable rate of 2.75% (previously 3.50%) subject to an additional step-down to 2.50% or 2.25%, if the First Lien Net Leverage Ratio falls below 3.00:1.00 or 2.50:1.00, respectively. For Base Rate Loans, the interest is subject to a floor of the greater of the federal funds rate plus 0.50%, the Prime Lending Rate or an Adjusted Eurocurrency Rate plus 1%, plus an applicable rate of 1.75% (previously 2.50%), subject to an additional step-down to 1.50% or 1.25%, if the First Lien Net Leverage Ratio falls below 3.00:1.00 and 2.50:1.00, respectively.

Under circumstances described in the Credit Agreement, we may increase available revolving or term facility borrowings by up to $400.0 million plus an additional amount subject to the Company not exceeding a maximum first lien leverage ratio described in the Credit Agreement.

There have been no borrowings on the Revolving Credit Facility since the issuance of the Senior Secured Credit Facilities. At September 30, 2017 and December 31, 2016, letters of credit issued under the Revolving Credit Facility totaled $21.8 million and $21.3 million which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $378.2 million and $378.7 million at September 30, 2017 and December 31, 2016, respectively.

Significant Terms of the 2021 Senior Notes

On February 1, 2013, Dutch B B.V., as "Dutch Issuer", and Axalta US Holdings, as "US Issuer" (collectively the "Issuers") issued $750.0 million in 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 in aggregate principal amount of 5.750% senior secured notes due 2021 (the "2021 Euro Senior Notes" and, together with the 2021 Dollar Senior Notes, the "2021 Senior Notes") and related guarantees thereof. The 2021 Senior Notes were unconditionally guaranteed on a senior basis by Dutch A B.V. and certain of the Issuers’ subsidiaries.

Issuance of New Senior Notes and Redemption of 2021 Senior Notes

On August 16, 2016, Axalta Coating Systems, LLC ("New U.S. Issuer") issued $500.0 million in aggregate principal amount of 4.875% Senior Unsecured Notes (the “2024 Dollar Senior Notes”) and €335.0 million in aggregate principal amount of 4.250% Senior Unsecured Notes (the “2024 Euro Senior Notes”), each due August 2024 (collectively the “2024 Senior Notes”), for the primary purpose of redeeming the 2021 Dollar Senior Notes. Consistent with the terms of the 2021 Dollar Senior Notes, we extinguished the principal at a redemption price equal to 105.531%.

The 2024 Senior Notes are fully and unconditionally guaranteed by Dutch B B.V. (“Parent Guarantor”).

In addition, on September 27, 2016, the Dutch Issuer issued €450.0 million in aggregate principal amount of 3.750% Euro Senior Unsecured Notes due January 2025 (the “2025 Euro Senior Notes” and with the 2024 Senior Notes, the “New Senior Notes”, each of which is described in detail below) for the primary purpose of redeeming the 2021 Euro Senior Notes and the partial prepayment of the 2020 Euro Term Loans. Consistent with the original terms of the 2021 Euro Senior Notes, we extinguished the principal at a redemption price equal to 104.313%.

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 a $2.0 million discount, and are due August 15, 2024. The 2024 Dollar Senior Notes bear interest at 4.875% which is 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 Senior Notes Percentage
2019	103.656	%
2020	102.438	%
2021	101.219	%
2022 and thereafter	100.000	%

Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Dollar Senior Notes) at a redemption price of 104.875% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.

Upon the occurrence of certain events constituting a change of control, holders of the 2024 Dollar Senior Notes have the right to require us to repurchase all or any part of the 2024 Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.

The 2024 Dollar Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.

The indebtedness issued through the 2024 Dollar Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.

(ii) 2024 Euro Senior Notes

The 2024 Euro Senior Notes were issued at par and are due August 15, 2024. The 2024 Euro Senior Notes bear interest at 4.250% which is 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 Senior Notes Percentage
2019	103.188	%
2020	102.125	%
2021	101.063	%
2022 and thereafter	100.000	%

Notwithstanding the foregoing, at any time and from time to time prior to August 15, 2019, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2024 Euro Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2024 Euro Senior Notes) at a redemption price of 104.250% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.

Upon the occurrence of certain events constituting a change of control, holders of the 2024 Euro Senior Notes have the right to require us to repurchase all or any part of the 2024 Euro Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.

The 2024 Euro Senior Notes, subject to local law limitations, will initially be jointly and severally guaranteed on a senior unsecured basis by each of the Parent Guarantor’s existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities. Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.

The indebtedness issued through the 2024 Euro Senior Notes is senior unsecured indebtedness of the New U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the New U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the New U.S. Issuer and guarantors. The 2024 Euro Senior Notes are effectively subordinated to any secured indebtedness of the New U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.

(iii) 2025Euro 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% which is 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 Senior 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, 2017.

Remainder of 2017	$	19.3
2018	28.9
2019	25.5
2020	25.4
2021	25.4
Thereafter	3,814.3
	$	3,938.8

The table above excludes $14.2 million of debt associated with our sale-leaseback financings that will not be settled with cash.

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Fair Value Accounting

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Accounting

FAIR VALUE ACCOUNTING

Fair value of financial instruments

Available for sale securities - The fair value of available for sale securities at September 30, 2017 and December 31, 2016 was $4.7 million and $4.4 million, respectively. The fair value was based upon either Level 1 inputs when the securities are actively traded with quoted market prices or Level 2 when the securities are not frequently traded.

Long-term borrowings - The fair values of the 2024 Dollar Senior Notes, 2024 Euro Senior Notes and 2025 Euro Senior Notes at September 30, 2017 were $502.5 million, $419.8 million and $558.7 million, respectively. The fair values at December 31, 2016 were $500.0 million, $363.8 million and $472.2 million, respectively. The estimated fair values of these notes are based on recent trades, as reported by a third-party pricing service. Due to the infrequent trades of the New Senior Notes, these inputs are considered to be Level 2 inputs.

The fair values of the 2024 Dollar Term Loans and the 2023 Euro Term Loans at September 30, 2017 were $2,079.8 million and $471.8 million, respectively. The fair values of the 2023 Dollar Term Loans and the 2023 Euro Term Loans at December 31, 2016 were $1,560.5 million and $421.8 million, respectively. The estimated fair values of the 2024 Dollar Term Loans and the 2023 Euro Loans are based on recent trades, as reported by a third-party pricing service. Due to the infrequent trades of the Current Term Loans, these inputs are considered to be Level 2 inputs.

Fair value of contingent consideration

The fair value of contingent consideration associated with acquisitions completed in current and prior years are valued at each balance sheet date, until amounts become payable, with adjustments recorded within selling, general and administrative expenses on the condensed consolidated statement of operations. The fair value of contingent consideration at September 30, 2017 was $7.5 million. During the three and nine months ended September 30, 2017, the Company recorded gains of $0.7 million and $4.6 million associated with the changes to fair value, respectively. The fair value of contingent consideration at December 31, 2016 was $10.0 million. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy.

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs.

Derivative Instruments Qualifying and Designated as Cash Flow Hedges

During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps matured on September 29, 2017.

During the three months ended March 31, 2017, we entered into three1.5% interest rate caps with aggregate notional amounts totaling $600 million to hedge the variable interest rate exposures on our 2024 Dollar Term Loans. These caps are effective beginning September 30, 2017 through December 31, 2019 and include an aggregate deferred premium of $8.6 million which will be paid quarterly over the term of the cap.

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 sheets:

	September 30, 2017		December 31, 2016
Prepaid and other assets:
Interest rate swaps	$	—	$	0.1
Total assets	$	—	$	0.1
Other accrued liabilities:
Interest rate swaps	$	—	$	0.8
Interest rate caps	$	3.0	$	—
Other liabilities
Interest rate caps	$	1.1	$	—
Total liabilities	$	4.1	$	0.8

For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of 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 period earnings.

The following tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2017 and 2016 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  (Gains) Losses  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, 2017		Three Months Ended September 30, 2016				Three Months Ended September 30, 2017			Three Months Ended September 30, 2016			Three Months Ended September 30, 2017		Three Months Ended September 30, 2016
Interest rate contracts	$	—	$	(1.7	)	Interest expense, net	$	(0.5	)	$	1.7	Interest expense, net	$	0.4	$	(2.0	)

	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  (Gains) Losses  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, 2017		Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2017		Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2017		Nine Months Ended September 30, 2016
Interest rate contracts	$	3.7	$	—	Interest expense, net	$	0.2	$	4.9	Interest expense, net	$	2.4	$	1.3

Derivative Instruments Not Designated as Cash Flow Hedges

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 (income) expense, net in the condensed consolidated statement of operations.

During the year ended December 31, 2013, we purchased a €300.0 million1.5% interest rate cap on our Euro Term Loan for a premium of $3.1 million. The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument were recorded in current period earnings and are included in interest expense. This hedge matured on September 29, 2017.

During the three months ended March 31, 2017, we purchased a 1.25% interest rate cap with a notional amount of €388.0 million to hedge the variable interest rate exposures on our 2023 Euro Term Loans. We paid a premium equal to $0.6 million for the interest rate cap which is effective beginning September 30, 2017 through December 31, 2019. Changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.

The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheets:

	September 30, 2017		December 31, 2016
Prepaid and other assets:
Foreign currency contracts	$	—	$	0.1
Other assets
Interest rate caps	$	0.1	$	—
Total assets	$	0.1	$	0.1
Other accrued liabilities:
Foreign currency contracts	$	—	$	0.5
Total liabilities	$	—	$	0.5

Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings 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	2017		2016		2017		2016
Interest rate caps	Interest expense	$	0.2	$	—	$	0.6	$	—
Foreign currency forward contracts	Other expense, net	$	2.5	$	0.4	$	9.7	$	4.4

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Segments

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

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,
	2017		2016		2017		2016
Performance Coatings
Refinish	$	395.3	$	431.7	$	1,205.1	$	1,259.3
Industrial	298.2		184.8		737.7		532.4
Total Net sales Performance Coatings	693.5		616.5		1,942.8		1,791.7
Transportation Coatings
Light Vehicle	309.7		321.1		984.0		994.9
Commercial Vehicle	88.6		83.0		261.3		254.8
Total Net sales Transportation Coatings	398.3		404.1		1,245.3		1,249.7
Total Net sales	$	1,091.8	$	1,020.6	$	3,188.1	$	3,041.4

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,
	2017						2016
	Performance Coatings		Transportation Coatings		Total		Performance Coatings			Transportation Coatings		Total
Net sales (1)	$	693.5	$	398.3	$	1,091.8	$	616.5		$	404.1	$	1,020.6
Equity in earnings (losses) in unconsolidated affiliates	—		0.1		0.1		(0.4		)	0.1		(0.3		)
Adjusted EBITDA (2)	135.1		74.4		209.5		145.7			84.7		230.4
Investment in unconsolidated affiliates	3.1		12.3		15.4		3.3			11.5		14.8

	Nine Months Ended September 30,
	2017						2016
	Performance Coatings		Transportation Coatings		Total		Performance Coatings			Transportation Coatings		Total
Net sales (1)	$	1,942.8	$	1,245.3	$	3,188.1	$	1,791.7		$	1,249.7	$	3,041.4
Equity in earnings (losses) in unconsolidated affiliates	0.2		0.3		0.5		(0.2		)	0.2		—
Adjusted EBITDA (2)	398.8		241.0		639.8		413.2			264.7		677.9
Investment in unconsolidated affiliates	3.1		12.3		15.4		3.3			11.5		14.8

(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,
	2017			2016			2017			2016
Income (loss) before income taxes	$	58.4		$	(12.9	)	$	124.8		$	102.8
Interest expense, net	37.7			42.9			109.1			140.8
Depreciation and amortization	88.6			81.2			255.9			235.8
EBITDA	184.7			111.2			489.8			479.4
Debt extinguishment and refinancing related costs (a)	0.6			81.9			13.0			84.2
Foreign exchange remeasurement losses (b)	3.5			4.5			8.3			30.0
Long-term employee benefit plan adjustments (c)	(0.1		)	0.8			0.4			2.1
Termination benefits and other employee related costs (d)	5.8			16.3			6.6			25.2
Consulting and advisory fees (e)	—			2.7			(0.1		)	8.3
Transition-related costs (f)	1.9			—			5.8			—
Offering and transactional costs (g)	0.5			3.0			6.1			4.4
Stock-based compensation (h)	9.2			10.0			30.5			31.6
Other adjustments (i)	0.8			1.5			3.6			5.2
Dividends in respect of noncontrolling interest (j)	(1.8		)	(1.5		)	(2.7		)	(3.0		)
Deconsolidation impacts and impairments (k)	4.4			—			78.5			10.5
Adjusted EBITDA	$	209.5		$	230.4		$	639.8		$	677.9

(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. In addition, during the three and nine months ended September 30, 2016, we amended our Credit Agreement and refinanced our indebtedness, resulting in additional losses of $77.6 million. In connection with the refinancing of our Dollar Term Loans during the nine months ended September 30, 2017, we recorded losses of $13.0 million, including changes to estimates of $0.6 million for the three months ended September 30, 2017. We do not consider these to be indicative of our ongoing operating performance.

(b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of impacts associated with our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $1.8 million for the nine months ended September 30, 2017 and losses of $1.2 million and $23.9 million for the three and nine months ended September 30, 2016, respectively.

(c) Eliminates the non-cash, non-service cost components of long-term employee benefits.

(d) Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.

(e) Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.

(f) Represents integration costs related to the acquisition of the Industrial Wood business that was a carve-out business from Valspar. These amounts are not considered indicative of our ongoing operating performance.

(g) Represents acquisition-related expenses, including changes in the fair value of contingent consideration, as well as costs associated with the 2016 secondary offerings of our common shares by Carlyle, both of which are not considered indicative of our ongoing operating performance.

(h) Represents non-cash costs associated with stock-based compensation.

(i) Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of 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.

(j) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of the entities on Axalta's financial statements.

(k) During the nine months ended September 30, 2017 and 2016, we recorded a loss in conjunction with the deconsolidation of our Venezuelan subsidiary and a non-cash impairment charge related to a real estate investment of $70.9 million and $10.5 million, respectively. During the three and nine months ended September 30, 2017, we recorded non-cash impairment charges related to certain manufacturing facilities previously announced for closure of $4.4 million and $7.6 million, respectively. We do not consider these to be indicative of our ongoing operating performance.

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Shareholders' Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Shareholders' Equity

SHAREHOLDERS' EQUITY

The following tables present the change in total shareholders’ equity for the nine months ended September 30, 2017 and 2016, respectively.

	Total Axalta			Noncontrolling Interests			Total
Balance at December 31, 2016	$	1,125.1		$	121.5		$	1,246.6
Net income	98.2			5.1			103.3
Other comprehensive income, net of tax	94.1			1.0			95.1
Recognition of stock-based compensation	30.5			—			30.5
Exercise of stock options	19.9			—			19.9
Treasury share repurchase	(58.4		)	—			(58.4		)
Dividends paid to noncontrolling interests	—			(2.7		)	(2.7		)
Balance September 30, 2017	$	1,309.4		$	124.9		$	1,434.3

	Total Axalta		Noncontrolling Interests			Total
Balance at December 31, 2015	$	1,065.7	$	67.5		$	1,133.2
Cumulative effect of an accounting change (1)	43.9		—			43.9
Balance at January 1, 2016	1,109.6		67.5			1,177.1
Net income	76.0		3.7			79.7
Other comprehensive income, net of tax	16.4		0.8			17.2
Recognition of stock-based compensation	31.6		—			31.6
Exercise of stock options	13.8		—			13.8
Noncontrolling interests of acquired subsidiaries	—		51.3			51.3
Dividends paid to noncontrolling interests	—		(3.0		)	(3.0		)
Balance September 30, 2016	$	1,247.4	$	120.3		$	1,367.7

⁽¹⁾ January 1, 2016 balance was adjusted at December 31, 2016 to reflect the impact of the adoption of ASU 2016-09, as discussed in Note 1.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE LOSS

	Unrealized Currency Translation Adjustments			Pension Adjustments			Unrealized Gain (Loss) on Securities			Unrealized Gain (Losses) on Derivatives			Accumulated Other Comprehensive Income (Loss)
December 31, 2016	$	(292.2	)	$	(56.6	)	$	0.4		$	(2.0	)	$	(350.4	)
Current year deferrals to AOCI	88.3			(0.3		)	(0.1		)	1.7			89.6
Reclassifications from AOCI to Net income	—			6.2			—			(1.7		)	4.5
Net Change	88.3			5.9			(0.1		)	—			94.1
September 30, 2017	$	(203.9	)	$	(50.7	)	$	0.3		$	(2.0	)	$	(256.3	)

Included in the reclassification from AOCI to net income (loss) was a pension plan adjustment related to the deconsolidation of our Venezuelan subsidiary and the corresponding write-off of the accumulated actuarial loss on our Venezuela pension plan. This resulted in a decrease of $5.9 million in AOCI, inclusive of $2.6 million of tax benefits, and is discussed further in Note 21.

The income tax expense related to the changes in pension benefits for the nine months ended September 30, 2017 was $3.1 million. The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2017 was $16.0 million. The income tax benefit related to the change in the unrealized loss on derivatives for the nine months ended September 30, 2017 was $1.1 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at September 30, 2017 was $2.2 million.

	Unrealized Currency Translation Adjustments			Pension Adjustments			Unrealized Gain (Loss) on Securities		Unrealized Gain (Loss) on Derivatives			Accumulated Other Comprehensive Income (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 benefits for the nine months ended September 30, 2016 was $0.0 million. The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2016 was $13.4 million. The income tax benefit 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.

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Venezuela

9 Months Ended

Sep. 30, 2017

Foreign Currency [Abstract]

Venezuela

VENEZUELA

During the three months ended June 30, 2017, we concluded there was an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. This lack of exchangeability restricted our Venezuelan subsidiary's ability to pay dividends or settle intercompany obligations, which severely limited our ability to realize the benefits from earnings of our Venezuelan operations and access the resulting liquidity provided by those earnings.

Based on the fact that we believe this lack of exchangeability will continue, the continued political unrest, the recent drop in demand for our business and the expected losses we were forecasting for the foreseeable future, we concluded that we no longer met the accounting criteria of control in order to continue consolidating our Venezuelan operations and began accounting for our investments in our Venezuelan subsidiary under the cost method of accounting. As a result of this change, we recorded a loss of $70.9 million on our condensed consolidated statement of operations. This loss was comprised of the subsidiary's net assets for $30.0 million, counterparty intercompany receivables with our Venezuela subsidiary for $35.0 million and unrealized actuarial losses associated with pension plans in accumulated other comprehensive income of $5.9 million. The value of the cost investment and all previous intercompany balances are now recorded at zero as of September 30, 2017. Further, our consolidated balance sheet and statement of operations will no longer include the results of our Venezuelan operations. We will recognize income only to the extent that we are paid for inventory we sell or receive cash dividends from our Venezuelan legal entity.

Our Venezuelan subsidiary contributed zero and $2.5 million to net sales during the three and nine months ended September 30, 2017, respectively. This is compared to the subsidiary's net sales for the three and nine months ended September 30, 2016 which represented $19.4 million and $48.6 million of our consolidated net sales, respectively.

During the nine months ended September 30, 2016 we recorded an impairment loss of $10.5 million at our Venezuelan subsidiary to write down the carrying value of a real estate investment to its fair value. The method used to determine fair values for both assets included using Level 2 inputs in the form of a sale and purchase agreement for the certain manufacturing assets and observable market quotes from local real estate broker service firms for the Venezuela real estate investment.

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Recent Accounting Guidance (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy

Accounting Guidance Issued But Not Yet Adopted

In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits", which requires that an employer report the service cost component of net periodic pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. We are in the process of working with our actuarial specialists in assessing the impact the adoption of this standard will have on our balance sheets, statements of operations and statements of cash flows.

In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which eliminates the second step in the goodwill impairment test requiring an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. This standard is not expected to have a material impact on our financial statements unless an impairment indicator is identified in our reporting units.

In 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. At a minimum, total assets and total liabilities will increase in the period of adoption.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which sets forth the accounting guidance applicable for revenue recognition. This standard was initially intended to be effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date", which delayed the previous effective date of the new revenue accounting standard to fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. Companies were allowed to early adopt the guidance as of the original effective date. Early adoption is not permitted prior to the original effective date. We continue to progress in the quantification of the impacts that this standard will have on our consolidated financial statements and have refined certain estimates that will be used in order to calculate such impacts, although the final impact remains unknown. We will provide further detail as we progress in our quantification, as well as our determination of the transition method to be adopted. We have reviewed our sales contracts and practices as compared to the new guidance and continue to make progress in our implementation plan as well as our assessment of procedural and policy requirements related to the provisions of this standard. In addition to the expanded disclosures regarding revenue, this guidance will result in the acceleration of revenue recognition in certain arrangements primarily within our Transportation Coatings segment in which we determine effective control over inventory has transferred to the customer upon delivery as compared to consumption under historical consignment arrangements.

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 have continued to assess the potential impact of the revised guidance on our financial statements. In addition to the expanded disclosures regarding revenue, this guidance may impact our accounting and reporting for certain arrangements, including the periods in which we recognize revenue and the potential recording of contract assets for the sale of our products or services. To conclude on these matters, we are involving leadership within our various organizations with specific knowledge of the arrangements to understand the legal, operational and financial matters.

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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

After preliminary working capital adjustments, the Company paid an aggregate purchase price of $430.5 million, which was comprised of the following:

	June 1, 2017 (As Initially Reported)			Measurement Period Adjustments			June 1, 2017 (As Adjusted)
Accounts and notes receivable—trade	$	23.3		$	0.1		$	23.4
Inventories	24.9			(0.2		)	24.7
Prepaid expenses and other	0.2			—			0.2
Property, plant and equipment	23.0			—			23.0
Identifiable intangibles	254.2			3.9			258.1
Accounts payable	(22.4		)	0.2			(22.2		)
Other accrued liabilities	(5.1		)	(0.2		)	(5.3		)
Net assets acquired before goodwill on acquisition	298.1			3.8			301.9
Goodwill on acquisition	132.6			(4.0		)	128.6
Net assets acquired	$	430.7		$	(0.2	)	$	430.5

Business Acquisition, Pro Forma Information

The following supplemental pro forma information represents the results of operations as if the Company had acquired Industrial Wood on January 1, 2016:

	For the nine months ended
(in millions, except per share data)	September 30, 2017		September 30, 2016
Net sales	$	3,289.4	$	3,205.9
Net income	$	108.8	$	78.4
Net income attributable to controlling interests	$	103.7	$	74.7
Net income per share (Basic)	$	0.43	$	0.31
Net income per share (Diluted)	$	0.42	$	0.31

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Goodwill and Identifiable Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table shows changes in the carrying amount of goodwill from December 31, 2016 to September 30, 2017 by reportable segment:

	Performance Coatings			Transportation Coatings		Total
December 31, 2016	$	889.4		$	74.7	$	964.1
Goodwill from acquisitions	204.1			—		204.1
Purchase accounting adjustments	(10.8		)	—		(10.8		)
Foreign currency translation	94.2			6.7		100.9
September 30, 2017	$	1,176.9		$	81.4	$	1,258.3

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class

The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:

September 30, 2017	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted average amortization periods (years)
Technology	$	494.7	$	(200.1	)	$	294.6	10.5
Trademarks - indefinite-lived	297.4		—			297.4		Indefinite
Trademarks - definite-lived	77.1		(15.9		)	61.2		14.7
Customer relationships	941.8		(164.0		)	777.8		19.0
Other	16.6		(1.7		)	14.9		4.4
Total	$	1,827.6	$	(381.7	)	$	1,445.9

December 31, 2016	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted average amortization periods (years)
Technology	$	417.1	$	(153.6	)	$	263.5	10.2
Trademarks—indefinite-lived	273.2		—			273.2		Indefinite
Trademarks—definite-lived	55.0		(11.4		)	43.6		14.8
Customer relationships	672.6		(123.3		)	549.3		18.7
Other	2.4		(1.7		)	0.7		4.6
Total	$	1,420.3	$	(290.0	)	$	1,130.3

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2017 and each of the succeeding five years is:

Remainder of 2017	$	27.9
2018	$	108.1
2019	$	107.8
2020	$	107.3
2021	$	105.4
2022	$	76.1

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table summarizes the activities related to the restructuring reserves and expenses from December 31, 2016 to September 30, 2017:

	2017 Activity
Balance at December 31, 2016	$	66.1
Expense recorded	7.6
Payments made	(24.2		)
Foreign currency impacts	6.2
Venezuela deconsolidation impact	(1.5		)
Balance at September 30, 2017	$	54.2

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Commitments and Contingencies Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of Sale Leaseback Transactions

The table below reflects the total remaining cash payments related to both transactions during the rental term as of September 30, 2017:

	Sale-leaseback obligations
Remainder of 2017	$	1.3
2018	5.4
2019	5.5
2020	5.6
2021	5.6
Thereafter	91.9
Total minimum payments	$	115.3

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Long-term Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

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, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Components of net periodic benefit cost:
Net periodic benefit cost:
Service cost	$	2.2		$	2.4		$	6.4		$	7.5
Interest cost	3.3			3.7			10.0			11.5
Expected return on plan assets	(3.7		)	(3.0		)	(10.7		)	(9.6		)
Amortization of actuarial loss, net	0.3			0.1			1.1			0.2
Net periodic benefit cost	$	2.1		$	3.2		$	6.8		$	9.6

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Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Options Roll Forward

A summary of stock option award activity as of and for the nine months ended September 30, 2017 is presented below.

Stock Options	Awards/Units (in millions)		Weighted- Average Exercise Price		Aggregate Intrinsic Value  (in millions)		Weighted Average Remaining Contractual Life (years)
Outstanding at January 1, 2017	9.6		$	14.40
Granted	0.9		$	29.56
Exercised	(1.9	)	$	10.76
Forfeited	(0.1	)	$	25.61
Outstanding at September 30, 2017	8.5		$	16.58
Vested and expected to vest at September 30, 2017	8.5		$	16.58	$	108.9	6.77
Exercisable at September 30, 2017	6.6		$	13.33	$	105.1	6.23

Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward

Restricted Stock Awards and Restricted Stock Units	Awards (millions)		Weighted-Average Fair Value
Outstanding at January 1, 2017	2.3		$	29.18
Granted	0.7		$	30.21
Vested	(0.9	)	$	30.05
Forfeited	(0.1	)	$	26.77
Outstanding at September 30, 2017	2.0		$	29.27

Schedule of Performance Stock Roll Forward

Performance Stock Awards and Performance Share Units	Awards (millions)	Weighted-Average Fair Value
Outstanding at January 1, 2017	0.3	$	24.74
Granted	0.3	$	38.11
Vested	—	$	—
Forfeited	—	$	—
Outstanding at September 30, 2017	0.6	$	31.16

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Other Expense, Net (Tables)

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Schedule of Other Nonoperating Income (Expense)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Foreign exchange losses, net	$	3.5		$	4.5	$	8.3		$	30.0
Impairments of property	4.4			—		7.6			10.5
Debt extinguishment and refinancing related costs	0.6			81.9		13.0			84.2
Other miscellaneous (income) expense, net	(0.6		)	1.0		(1.4		)	3.5
Total	$	7.9		$	87.4	$	27.5		$	128.2

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

Our effective income tax rates for the nine months ended September 30, 2017 and 2016 are as follows:

	Nine Months Ended September 30,
	2017		2016
Effective Tax Rate	17.2	%	22.5	%

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Earnings (Loss) Per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

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)	2017		2016(1)			2017		2016(1)
Net income (loss) to common shareholders	$	54.9	$	(6.6	)	$	98.2	$	76.0
Basic weighted average shares outstanding	240.7		238.5			240.5		237.8
Diluted weighted average shares outstanding	245.8		238.5			246.2		244.2
Net income (loss) per common share:
Basic net income (loss) per share	$	0.23	$	(0.03	)	$	0.41	$	0.32
Diluted net income (loss) per share	$	0.22	$	(0.03	)	$	0.40	$	0.31

⁽¹⁾ Net income per common share for the nine months ended September 30, 2016 is inclusive of effects of the adoption of ASU 2016-09, discussed further at Note 1, which increased diluted weighted average shares outstanding by 1.8 million shares. Based on the fact that diluted weighted average shares outstanding are equal to basic weighted average shares outstanding in periods of loss, there was no impact of this adoption on diluted weighted average shares outstanding during the three months ended September 30, 2016.

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Accounts and Notes Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

	September 30, 2017		December 31, 2016
Accounts receivable - trade, net	$	766.6	$	640.4
Notes receivable	26.6		68.7
Other	95.8		92.8
Total	$	889.0	$	801.9

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Inventories (Tables)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

	September 30, 2017		December 31, 2016
Finished products	$	360.7	$	315.2
Semi-finished products	97.4		87.5
Raw materials and supplies	166.3		127.0
Total	$	624.4	$	529.7

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Property, Plant and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

	September 30, 2017			December 31, 2016
Property, plant and equipment	$	2,147.9		$	1,933.0
Accumulated depreciation	(761.8		)	(617.3		)
Property, plant and equipment, net	$	1,386.1		$	1,315.7

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Borrowings (Tables)

9 Months Ended

Sep. 30, 2017

Debt Instrument [Line Items]

Schedule of Debt

Borrowings are summarized as follows:

	September 30, 2017			December 31, 2016
2024 Dollar Term Loans	$	1,995.0		$	—
2023 Dollar Term Loans	—			1,545.0
2023 Euro Term Loans	467.1			417.6
2024 Dollar Senior Notes	500.0			500.0
2024 Euro Senior Notes	394.2			349.7
2025 Euro Senior Notes	529.5			469.8
Short-term and other borrowings	67.2			39.8
Unamortized original issue discount	(9.6		)	(10.0		)
Unamortized deferred financing costs	(40.4		)	(48.0		)
	$	3,903.0		$	3,263.9
Less:
Short term borrowings	$	13.1		$	8.3
Current portion of long-term borrowings	24.7			19.6
Long-term debt	$	3,865.2		$	3,236.0

Schedule of Maturities of Long-term Debt

Below is a schedule of required future repayments of all borrowings outstanding at September 30, 2017.

Remainder of 2017	$	19.3
2018	28.9
2019	25.5
2020	25.4
2021	25.4
Thereafter	3,814.3
	$	3,938.8

2024 Dollar Senior Notes [Member]

Debt Instrument [Line Items]

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 Senior Notes Percentage
2019	103.656	%
2020	102.438	%
2021	101.219	%
2022 and thereafter	100.000	%

2024 Euro Senior Notes [Member]

Debt Instrument [Line Items]

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 Senior Notes Percentage
2019	103.188	%
2020	102.125	%
2021	101.063	%
2022 and thereafter	100.000	%

2025 Euro Senior Notes [Member]

Debt Instrument [Line Items]

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 Senior Notes Percentage
2019	102.813	%
2020	101.875	%
2021	100.938	%
2022 and thereafter	100.000	%

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Derivative [Line Items]

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, 2017 and 2016 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  (Gains) Losses  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, 2017		Three Months Ended September 30, 2016				Three Months Ended September 30, 2017			Three Months Ended September 30, 2016			Three Months Ended September 30, 2017		Three Months Ended September 30, 2016
Interest rate contracts	$	—	$	(1.7	)	Interest expense, net	$	(0.5	)	$	1.7	Interest expense, net	$	0.4	$	(2.0	)

	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  (Gains) Losses  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, 2017		Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2017		Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2017		Nine Months Ended September 30, 2016
Interest rate contracts	$	3.7	$	—	Interest expense, net	$	0.2	$	4.9	Interest expense, net	$	2.4	$	1.3

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 have not been designated for hedge accounting treatment are recorded in earnings 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	2017		2016		2017		2016
Interest rate caps	Interest expense	$	0.2	$	—	$	0.6	$	—
Foreign currency forward contracts	Other expense, net	$	2.5	$	0.4	$	9.7	$	4.4

Designated as Hedging Instrument [Member]

Derivative [Line Items]

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 sheets:

	September 30, 2017		December 31, 2016
Prepaid and other assets:
Interest rate swaps	$	—	$	0.1
Total assets	$	—	$	0.1
Other accrued liabilities:
Interest rate swaps	$	—	$	0.8
Interest rate caps	$	3.0	$	—
Other liabilities
Interest rate caps	$	1.1	$	—
Total liabilities	$	4.1	$	0.8

Not Designated as Hedging Instrument [Member]

Derivative [Line Items]

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 sheets:

	September 30, 2017		December 31, 2016
Prepaid and other assets:
Foreign currency contracts	$	—	$	0.1
Other assets
Interest rate caps	$	0.1	$	—
Total assets	$	0.1	$	0.1
Other accrued liabilities:
Foreign currency contracts	$	—	$	0.5
Total liabilities	$	—	$	0.5

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Segments (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

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,
	2017		2016		2017		2016
Performance Coatings
Refinish	$	395.3	$	431.7	$	1,205.1	$	1,259.3
Industrial	298.2		184.8		737.7		532.4
Total Net sales Performance Coatings	693.5		616.5		1,942.8		1,791.7
Transportation Coatings
Light Vehicle	309.7		321.1		984.0		994.9
Commercial Vehicle	88.6		83.0		261.3		254.8
Total Net sales Transportation Coatings	398.3		404.1		1,245.3		1,249.7
Total Net sales	$	1,091.8	$	1,020.6	$	3,188.1	$	3,041.4

Schedule of Segment Reporting Information, by Segment

	Three Months Ended September 30,
	2017						2016
	Performance Coatings		Transportation Coatings		Total		Performance Coatings			Transportation Coatings		Total
Net sales (1)	$	693.5	$	398.3	$	1,091.8	$	616.5		$	404.1	$	1,020.6
Equity in earnings (losses) in unconsolidated affiliates	—		0.1		0.1		(0.4		)	0.1		(0.3		)
Adjusted EBITDA (2)	135.1		74.4		209.5		145.7			84.7		230.4
Investment in unconsolidated affiliates	3.1		12.3		15.4		3.3			11.5		14.8

	Nine Months Ended September 30,
	2017						2016
	Performance Coatings		Transportation Coatings		Total		Performance Coatings			Transportation Coatings		Total
Net sales (1)	$	1,942.8	$	1,245.3	$	3,188.1	$	1,791.7		$	1,249.7	$	3,041.4
Equity in earnings (losses) in unconsolidated affiliates	0.2		0.3		0.5		(0.2		)	0.2		—
Adjusted EBITDA (2)	398.8		241.0		639.8		413.2			264.7		677.9
Investment in unconsolidated affiliates	3.1		12.3		15.4		3.3			11.5		14.8

(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

Reconciliation of Adjusted EBITDA to income before income taxes follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Income (loss) before income taxes	$	58.4		$	(12.9	)	$	124.8		$	102.8
Interest expense, net	37.7			42.9			109.1			140.8
Depreciation and amortization	88.6			81.2			255.9			235.8
EBITDA	184.7			111.2			489.8			479.4
Debt extinguishment and refinancing related costs (a)	0.6			81.9			13.0			84.2
Foreign exchange remeasurement losses (b)	3.5			4.5			8.3			30.0
Long-term employee benefit plan adjustments (c)	(0.1		)	0.8			0.4			2.1
Termination benefits and other employee related costs (d)	5.8			16.3			6.6			25.2
Consulting and advisory fees (e)	—			2.7			(0.1		)	8.3
Transition-related costs (f)	1.9			—			5.8			—
Offering and transactional costs (g)	0.5			3.0			6.1			4.4
Stock-based compensation (h)	9.2			10.0			30.5			31.6
Other adjustments (i)	0.8			1.5			3.6			5.2
Dividends in respect of noncontrolling interest (j)	(1.8		)	(1.5		)	(2.7		)	(3.0		)
Deconsolidation impacts and impairments (k)	4.4			—			78.5			10.5
Adjusted EBITDA	$	209.5		$	230.4		$	639.8		$	677.9

(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. In addition, during the three and nine months ended September 30, 2016, we amended our Credit Agreement and refinanced our indebtedness, resulting in additional losses of $77.6 million. In connection with the refinancing of our Dollar Term Loans during the nine months ended September 30, 2017, we recorded losses of $13.0 million, including changes to estimates of $0.6 million for the three months ended September 30, 2017. We do not consider these to be indicative of our ongoing operating performance.

(b) Eliminates foreign exchange gains and losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of impacts associated with our foreign currency instruments used to hedge our balance sheet exposures. Exchange effects attributable to the remeasurement of our Venezuelan subsidiary represented losses of $1.8 million for the nine months ended September 30, 2017 and losses of $1.2 million and $23.9 million for the three and nine months ended September 30, 2016, respectively.

(c) Eliminates the non-cash, non-service cost components of long-term employee benefits.

(d) Represents expenses primarily related to employee termination benefits and other employee-related costs associated with our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.

(e) Represents fees paid to consultants for professional services primarily related to our Axalta Way initiatives, which are not considered indicative of our ongoing operating performance.

(f) Represents integration costs related to the acquisition of the Industrial Wood business that was a carve-out business from Valspar. These amounts are not considered indicative of our ongoing operating performance.

(g) Represents acquisition-related expenses, including changes in the fair value of contingent consideration, as well as costs associated with the 2016 secondary offerings of our common shares by Carlyle, both of which are not considered indicative of our ongoing operating performance.

(h) Represents non-cash costs associated with stock-based compensation.

(i) Represents costs for certain non-operational or non-cash (gains) and losses unrelated to our core business and which we do not consider indicative of 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.

(j) Represents the payment of dividends to our joint venture partners by our consolidated entities that are not 100% owned, which are reflected to show the cash operating performance of the entities on Axalta's financial statements.

(k) During the nine months ended September 30, 2017 and 2016, we recorded a loss in conjunction with the deconsolidation of our Venezuelan subsidiary and a non-cash impairment charge related to a real estate investment of $70.9 million and $10.5 million, respectively. During the three and nine months ended September 30, 2017, we recorded non-cash impairment charges related to certain manufacturing facilities previously announced for closure of $4.4 million and $7.6 million, respectively. We do not consider these to be indicative of our ongoing operating performance.

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Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Stockholders Equity

The following tables present the change in total shareholders’ equity for the nine months ended September 30, 2017 and 2016, respectively.

	Total Axalta			Noncontrolling Interests			Total
Balance at December 31, 2016	$	1,125.1		$	121.5		$	1,246.6
Net income	98.2			5.1			103.3
Other comprehensive income, net of tax	94.1			1.0			95.1
Recognition of stock-based compensation	30.5			—			30.5
Exercise of stock options	19.9			—			19.9
Treasury share repurchase	(58.4		)	—			(58.4		)
Dividends paid to noncontrolling interests	—			(2.7		)	(2.7		)
Balance September 30, 2017	$	1,309.4		$	124.9		$	1,434.3

	Total Axalta		Noncontrolling Interests			Total
Balance at December 31, 2015	$	1,065.7	$	67.5		$	1,133.2
Cumulative effect of an accounting change (1)	43.9		—			43.9
Balance at January 1, 2016	1,109.6		67.5			1,177.1
Net income	76.0		3.7			79.7
Other comprehensive income, net of tax	16.4		0.8			17.2
Recognition of stock-based compensation	31.6		—			31.6
Exercise of stock options	13.8		—			13.8
Noncontrolling interests of acquired subsidiaries	—		51.3			51.3
Dividends paid to noncontrolling interests	—		(3.0		)	(3.0		)
Balance September 30, 2016	$	1,247.4	$	120.3		$	1,367.7

⁽¹⁾ January 1, 2016 balance was adjusted at December 31, 2016 to reflect the impact of the adoption of ASU 2016-09, as discussed in Note 1.

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income

	Unrealized Currency Translation Adjustments			Pension Adjustments			Unrealized Gain (Loss) on Securities			Unrealized Gain (Losses) on Derivatives			Accumulated Other Comprehensive Income (Loss)
December 31, 2016	$	(292.2	)	$	(56.6	)	$	0.4		$	(2.0	)	$	(350.4	)
Current year deferrals to AOCI	88.3			(0.3		)	(0.1		)	1.7			89.6
Reclassifications from AOCI to Net income	—			6.2			—			(1.7		)	4.5
Net Change	88.3			5.9			(0.1		)	—			94.1
September 30, 2017	$	(203.9	)	$	(50.7	)	$	0.3		$	(2.0	)	$	(256.3	)

	Unrealized Currency Translation Adjustments			Pension Adjustments			Unrealized Gain (Loss) on Securities		Unrealized Gain (Loss) on Derivatives			Accumulated Other Comprehensive Income (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	)

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Basis of Presentation of the Condensed Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended		11 Months Ended	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2013	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Subsidiary, Sale of Stock [Line Items]
Revenue, net	$ (1,091.8)	$ (1,020.6)	$ (3,188.1)	$ (3,041.4)
Impact on Net Income	$ 54.9	$ (6.6)	$ 98.2	$ 76.0
Earnings Per Share, Diluted	$ (0.22)	$ 0.03	$ (0.40)	$ (0.31)
Other accrued liabilities	$ 447.5		$ 447.5			$ 440.0
Goodwill	1,258.3		1,258.3			964.1
Other assets	548.2		548.2			536.1
Retained earnings (Accumulated deficit)	$ 40.1		$ 40.1			(58.1)
Subsidiaries [Member]
Subsidiary, Sale of Stock [Line Items]
Ownership interest in subsidiary	100.00%		100.00%
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-18 [Member]
Subsidiary, Sale of Stock [Line Items]
Net cash provided by (used in) investing activities				$ 0.0
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member]
Subsidiary, Sale of Stock [Line Items]
Net cash provided by (used in) operating activities				7.5
Net Cash Provided by (Used in) Financing Activities				(7.5)
Retained Earnings [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member]
Subsidiary, Sale of Stock [Line Items]
Effect of adoption, quantification						43.9
Other Nonoperating Income (Expense) [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member]
Subsidiary, Sale of Stock [Line Items]
Effect of adoption, quantification		$ (6.4)		(10.8)
Restatement Adjustment [Member] | Revenue Recognition Correction [Member]
Subsidiary, Sale of Stock [Line Items]
Revenue, net		2.8		(2.7)	$ 4.2	4.7	$ 3.3	$ 5.1
Impact on Net Income		$ (2.3)		$ 2.3	$ (2.8)	$ (3.0)	$ (2.1)	$ (3.1)
Earnings Per Share, Diluted	$ 0.01		$ 0.01			$ 0.01	$ 0.01	$ 0.01	$ 0.01
Other accrued liabilities						$ 22.4
Goodwill						3.1
Other assets						8.3
Retained earnings (Accumulated deficit)						$ 11.0

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Acquisitions - Additional Information (Details) $ in Millions		3 Months Ended	9 Months Ended		12 Months Ended
	Jun. 01, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 USD ($) business	Sep. 30, 2016 USD ($)	Dec. 31, 2016
Technology-Based Intangible Assets [Member]
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)			10 years 6 months		10 years 2 months
Trademarks [Member]
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)			14 years 8 months		14 years 8 months 31 days
Customer Relationships [Member]
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)			19 years		18 years 8 months
Industrial Wood Acquisition [Member]
Business Acquisition [Line Items]
Payments to acquire businesses, gross	$ 420.0
Working capital adjustments	10.5
Consideration transferred	430.5
Tax deductible goodwill	128.6	$ 128.6	$ 128.6
Acquisition costs		$ 5.3
Identifiable intangibles	$ 258.1
Acquired finite-lived intangible assets, weighted average useful life (in years)	19 years
Revenue of acquiree since acquisition date			86.7
Earnings or loss of acquiree since acquisition date			1.7
Pro forma net income			108.8	$ 78.4
Industrial Wood Acquisition [Member] | Acquisition-related Costs [Member]
Business Acquisition [Line Items]
Pro forma net income			5.3
Industrial Wood Acquisition [Member] | Acquisition-related Costs, Net of Tax [Member]
Business Acquisition [Line Items]
Pro forma net income			3.3
Industrial Wood Acquisition [Member] | Fair Value Adjustment to Inventory [Member]
Business Acquisition [Line Items]
Pro forma net income			2.3
Industrial Wood Acquisition [Member] | Fair Value Adjustment to Inventory, net of tax [Member]
Business Acquisition [Line Items]
Pro forma net income			1.4
Industrial Wood Acquisition [Member] | Technology-Based Intangible Assets [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 34.5
Industrial Wood Acquisition [Member] | Trademarks [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	8.1
Industrial Wood Acquisition [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	202.0
Industrial Wood Acquisition [Member] | Customer Contracts [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 13.5
2017 Acquisitions [Member]
Business Acquisition [Line Items]
Consideration transferred			565.0
Finite-lived intangible assets acquired			$ 315.6
Percent acquired		100.00%	100.00%
Number of businesses acquired | business			6
Contingent consideration		$ 5.7	$ 5.7
2017 Acquisitions [Member] | North America [Member]
Business Acquisition [Line Items]
Number of businesses acquired | business			2
2017 Acquisitions [Member] | Europe [Member]
Business Acquisition [Line Items]
Number of businesses acquired | business			3
2017 Acquisitions [Member] | Technology-Based Intangible Assets [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			$ 46.8
2017 Acquisitions [Member] | Trademarks [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			18.4
2017 Acquisitions [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			234.8
2017 Acquisitions [Member] | Customer Contracts [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			$ 15.6

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Acquisitions - Purchase Price Allocation (Details) - Industrial Wood Acquisition [Member] - USD ($) $ in Millions	Sep. 30, 2017	Jun. 01, 2017
Business Acquisition [Line Items]
Accounts and notes receivable—trade		$ 23.4
Inventories		24.7
Prepaid expenses and other		0.2
Property, plant and equipment		23.0
Identifiable intangibles		258.1
Accounts payable		(22.2)
Other accrued liabilities		(5.3)
Net assets acquired before goodwill on acquisition		301.9
Goodwill on acquisition	$ 128.6	128.6
Net assets acquired		430.5
Scenario, Previously Reported [Member]
Business Acquisition [Line Items]
Accounts and notes receivable—trade		23.3
Inventories		24.9
Prepaid expenses and other		0.2
Property, plant and equipment		23.0
Identifiable intangibles		254.2
Accounts payable		(22.4)
Other accrued liabilities		(5.1)
Net assets acquired before goodwill on acquisition		298.1
Goodwill on acquisition		132.6
Net assets acquired		430.7
Scenario, Adjustment [Member]
Business Acquisition [Line Items]
Accounts and notes receivable—trade		0.1
Inventories		(0.2)
Prepaid expenses and other		0.0
Property, plant and equipment		0.0
Identifiable intangibles		3.9
Accounts payable		0.2
Other accrued liabilities		(0.2)
Net assets acquired before goodwill on acquisition		3.8
Goodwill on acquisition		(4.0)
Net assets acquired		$ (0.2)

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Acquisitions - Pro Forma Information (Details) - Industrial Wood Acquisition [Member] - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net sales	$ 3,289.4	$ 3,205.9
Net income	108.8	78.4
Net income attributable to controlling interests	$ 103.7	$ 74.7
Net income per share (Basic) (in dollars per share)	$ 0.43	$ 0.31
Net income per share (Diluted) (in dollars per share)	$ 0.42	$ 0.31

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Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 964.1
Goodwill, Acquired During Period	204.1
Goodwill, Purchase Accounting Adjustments	(10.8)
Foreign currency translation	100.9
Goodwill, ending balance	1,258.3
Performance Coatings [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	889.4
Goodwill, Acquired During Period	204.1
Goodwill, Purchase Accounting Adjustments	(10.8)
Foreign currency translation	94.2
Goodwill, ending balance	1,176.9
Transportation Coatings [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	74.7
Goodwill, Acquired During Period	0.0
Goodwill, Purchase Accounting Adjustments	0.0
Foreign currency translation	6.7
Goodwill, ending balance	$ 81.4

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Goodwill and Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Identifiable Intangible Assets by Major Class (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
Gross Carrying Amount	$ 1,827.6	$ 1,420.3
Accumulated Amortization	(381.7)	(290.0)
Net Book Value, definite-lived	1,445.9	1,130.3
Trademarks [Member]
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
Net Book Value, indefinite-lived	297.4	273.2
Technology-Based Intangible Assets [Member]
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
Gross Carrying Amount	494.7	417.1
Accumulated Amortization	(200.1)	(153.6)
Net Book Value, definite-lived	$ 294.6	$ 263.5
Weighted average amortization periods (years)	10 years 6 months	10 years 2 months
Trademarks [Member]
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
Gross Carrying Amount	$ 77.1	$ 55.0
Accumulated Amortization	(15.9)	(11.4)
Net Book Value, definite-lived	$ 61.2	$ 43.6
Weighted average amortization periods (years)	14 years 8 months	14 years 8 months 31 days
Customer Relationships [Member]
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
Gross Carrying Amount	$ 941.8	$ 672.6
Accumulated Amortization	(164.0)	(123.3)
Net Book Value, definite-lived	$ 777.8	$ 549.3
Weighted average amortization periods (years)	19 years	18 years 8 months
Other Intangible Assets [Member]
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]
Gross Carrying Amount	$ 16.6	$ 2.4
Accumulated Amortization	(1.7)	(1.7)
Net Book Value, definite-lived	$ 14.9	$ 0.7
Weighted average amortization periods (years)	4 years 5 months	4 years 7 months

XML

Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions	Sep. 30, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2017	$ 27.9
2018	108.1
2019	107.8
2020	107.3
2021	105.4
2022	$ 76.1

XML

Restructuring - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 6.2	$ 15.6	$ 7.6	$ 21.2
Accelerated depreciation			4.3
Impairment charge on manufacturing facility	$ 4.4	$ 0.0	$ 7.6	$ 10.5
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Payment term (in months)			12 years
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Payment term (in months)			15 years

XML

Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Reserve [Roll Forward]
Beginning balance			$ 66.1
Expense recorded	$ 6.2	$ 15.6	7.6	$ 21.2
Payments made			(24.2)
Foreign currency impacts			6.2
Venezuela deconsolidation impact			(1.5)
Ending balance	$ 54.2		$ 54.2

XML

Commitments and Contingencies (Details) - Build To Suit Lease [Member] $ in Millions	Sep. 30, 2017 USD ($)
Loss Contingencies [Line Items]
Remainder of 2017	$ 1.3
2018	5.4
2019	5.5
2020	5.6
2021	5.6
Thereafter	91.9
Total minimum payments	$ 115.3

XML

Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net periodic benefit cost:
Service cost	$ 2.2	$ 2.4	$ 6.4	$ 7.5
Interest cost	3.3	3.7	10.0	11.5
Expected return on plan assets	(3.7)	(3.0)	(10.7)	(9.6)
Amortization of actuarial loss, net	0.3	0.1	1.1	0.2
Net periodic benefit (gain) cost	$ 2.1	$ 3.2	$ 6.8	$ 9.6

XML

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 9.2	$ 10.0	$ 30.5	$ 31.6
Tax benefit from compensation expense	2.8	$ 5.3	9.1	$ 10.8
Proceeds from stock options exercised			19.9
Tax benefit realized from exercise of stock options			12.4
Unrecognized compensation cost	5.8		$ 5.8
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition of compensation not yet recognized			2 years
Restricted Stock and Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition of compensation not yet recognized			2 years
Tax benefit realized on the vesting of restricted stock			$ 9.8
Compensation not yet recognized, share-based awards other than options	23.4		$ 23.4
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition of compensation not yet recognized			2 years 1 month
Compensation not yet recognized, share-based awards other than options	$ 13.2		$ 13.2

XML

Stock-based Compensation - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares
Awards (in millions)
Beginning Balance | shares	9.6
Grants in period | shares	0.9
Exercises in period | shares	(1.9)
Forfeitures in period | shares	(0.1)
Ending Balance | shares	8.5
Weighted Average Exercise Price (usd per share)
Beginning Balance | $ / shares	$ 14.40
Grants in period (usd per share) | $ / shares	29.56
Exercised (usd per share) | $ / shares	10.76
Forfeited (usd per share) | $ / shares	25.61
Ending Balance | $ / shares	$ 16.58
Vested and Expected to Vest
Vested and expected to vest, in shares | shares	8.5
Vested and expected to vest, weighted average exercise price (usd) | $ / shares	$ 16.58
Vested and expected to vest, aggregate intrinsic value | $	$ 108.9
Vested and expected to vest, weighted average contractual life (in years)	6 years 9 months 8 days
Exercisable
Exercisable, in shares | shares	6.6
Exercisable, usd per share | $ / shares	$ 13.33
Exercisable, aggregate intrinsic value | $	$ 105.1
Exercisable, weighted average contractual life (in years)	6 years 2 months 23 days

XML

Stock-based Compensation - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock and Restricted Stock Units [Member] shares in Millions	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Awards (in millions)
Beginning Balance | shares	2.3
Granted (in shares) | shares	0.7
Vested (in shares) | shares	(0.9)
Forfeited (in shares) | shares	(0.1)
Ending Balance | shares	2.0
Weighted Average Exercise Price (usd per share)
Beginning Balance (usd per share) | $ / shares	$ 29.18
Granted (usd per share) | $ / shares	30.21
Vested (usd per share) | $ / shares	30.05
Forfeited (usd per share) | $ / shares	26.77
Ending Balance (usd per share) | $ / shares	$ 29.27

XML

Stock-based Compensation - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares [Member] shares in Millions	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Awards (in millions)
Beginning Balance | shares	0.3
Granted (in shares) | shares	0.3
Vested (in shares) | shares	0.0
Forfeited (in shares) | shares	0.0
Ending Balance | shares	0.6
Weighted Average Exercise Price (usd per share)
Beginning Balance (usd per share) | $ / shares	$ 24.74
Granted (usd per share) | $ / shares	38.11
Vested (usd per share) | $ / shares	0.00
Forfeited (usd per share) | $ / shares	0.00
Ending Balance (usd per share) | $ / shares	$ 31.16

XML

Other Expense, Net - Schedule of Other Non-operating Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Income and Expenses [Abstract]
Foreign exchange losses, net	$ 3.5	$ 4.5	$ 8.3	$ 30.0
Impairments of property	4.4	0.0	7.6	10.5
Debt extinguishment and refinancing related costs	0.6	81.9	13.0	84.2
Other miscellaneous (income) expense, net	(0.6)	1.0	(1.4)	3.5
Total	$ 7.9	$ 87.4	$ 27.5	$ 128.2

XML

Other Expense, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Subsidiaries [Member]
Other Income Expense [Line Items]
Exchange loss	$ 1.2	$ 1.8	$ 23.9

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Line Items]
Effective income tax rate, percent			17.20%	22.50%
Venezuela deconsolidation charge	$ 0.0	$ 0.0	$ 70.9	$ 0.0
Tax benefit realized from exercises and vesting of share-based awards			$ 11.6	$ 10.8

XML

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss) to common shareholders	$ 54.9	$ (6.6)	$ 98.2	$ 76.0
Basic weighted average shares outstanding (in shares)	240.7	238.5	240.5	237.8
Diluted weighted average shares outstanding (in shares)	245.8	238.5	246.2	244.2
Net income (loss) per common share:
Basic net income (loss) per share (dollars per share)	$ 0.23	$ (0.03)	$ 0.41	$ 0.32
Diluted net income (loss) per share (dollars per share)	$ 0.22	$ (0.03)	$ 0.40	$ 0.31
Antidilutive securities excluded from computation of earnings per share (in shares)	1.9	13.0	1.8	1.4
Adjustments for New Accounting Pronouncement [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Diluted weighted average shares outstanding (in shares)				1.8

XML

Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Accounts receivable - trade, net	$ 766.6	$ 640.4
Notes receivable	26.6	68.7
Other	95.8	92.8
Total	$ 889.0	$ 801.9

XML

Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Receivables [Abstract]
Allowance for doubtful accounts	$ 16.6		$ 16.6		$ 13.7
Bad Debt Expense Net Of Recoveries	$ 0.9	$ 0.6	$ 3.3	$ 1.7

XML

Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished products	$ 360.7	$ 315.2
Semi-finished products	97.4	87.5
Raw materials and supplies	166.3	127.0
Inventories	$ 624.4	$ 529.7

XML

Inventories - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Stores and supplies inventories	$ 21.1	$ 20.2

XML

Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation	$ 43.3	$ 45.0	$ 131.3	$ 130.6

XML

Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, plant and equipment	$ 2,147.9	$ 1,933.0
Accumulated depreciation	(761.8)	(617.3)
Property, plant and equipment, net	$ 1,386.1	$ 1,315.7

XML

Borrowings - Schedule of Debt (Details) - USD ($) $ in Millions	Sep. 30, 2017	Jun. 01, 2017	Dec. 31, 2016	Aug. 16, 2016
Debt Instrument [Line Items]
Short-term and other borrowings	$ 67.2		$ 39.8
Unamortized original issue discount	(9.6)		(10.0)
Unamortized deferred financing costs	(40.4)		(48.0)
Debt and Capital Lease Obligations	3,903.0		3,263.9
Short term borrowings	13.1		8.3
Current portion of long-term borrowings	24.7		19.6
Long-term debt	3,865.2		3,236.0
2024 Dollar Term Loans [Member]
Debt Instrument [Line Items]
Term loan	1,995.0		0.0
Unamortized original issue discount		$ (2.5)
2023 Dollar Term Loan [Member]
Debt Instrument [Line Items]
Term loan	0.0		1,545.0
2023 Euro Term Loan [Member]
Debt Instrument [Line Items]
Term loan	467.1		417.6
2024 Dollar Senior Notes [Member]
Debt Instrument [Line Items]
Senior Notes	500.0		500.0
Unamortized original issue discount				$ (2.0)
2024 Euro Senior Notes [Member]
Debt Instrument [Line Items]
Senior Notes	394.2		349.7
2025 Euro Senior Notes [Member]
Debt Instrument [Line Items]
Senior Notes	$ 529.5		$ 469.8

XML

Borrowings - Senior Secured Credit Facilities (Details) € in Millions					9 Months Ended	12 Months Ended
	Dec. 15, 2016 USD ($)	Aug. 16, 2016	Aug. 01, 2016	Feb. 03, 2014 EUR (€)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2015	Jun. 01, 2017 USD ($)	Dec. 15, 2016 EUR (€)	Dec. 15, 2016 USD ($)	Jul. 31, 2016	Feb. 03, 2014 USD ($)
Debt Instrument [Line Items]
Unamortized original issue discount					$ 9,600,000	$ 10,000,000
Debt instrument covenant maximum consolidated leverage ratio							4.50
Proceeds from maturities, prepayments and calls of other investments (more than)	$ 75,000,000.0
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	4.25		3.00
First lien leverage ratio lower limit	3.50	5.50	2.50
Line of credit facility, maximum borrowing capacity					400,000,000.0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Expiration period (in years)			5 years
Accelerated period prior to expiration period (in days)			91 days
Percent of credit facility outstanding for accelerated maturity			30.00%								25.00%
Percent not cash collateralized			103.00%
Line of credit facility, maximum amount outstanding during period					0	0
Letters of credit outstanding, amount					21,800,000	21,300,000
Line of credit facility, remaining borrowing capacity					$ 378,200,000	$ 378,700,000
Dollar Term Loan Due 2020 [Member]
Debt Instrument [Line Items]
Debt, long-term and short-term, combined amount										$ 1,775,300,000		$ 2,282,800,000
Debt instrument, basis spread on variable rate							2.75%
Debt instrument covenant maximum consolidated leverage ratio				4.50
Dollar Term Loan Due 2020 [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				2.00%
Dollar Term Loan Due 2020 [Member] | Interest Rate Floor [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.75%			1.00%
Dollar Term Loan Due 2020 [Member] | Eurocurrency Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				3.00%
Euro Term Loan Due 2020 [Member]
Debt Instrument [Line Items]
Debt, long-term and short-term, combined amount | €				€ 397.0					€ 199.0
Debt instrument, basis spread on variable rate							3.00%
Euro Term Loan Due 2020 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage				1.00%								1.00%
Euro Term Loan Due 2020 [Member] | Eurocurrency Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				3.25%
2023 Dollar Term Loan [Member]
Debt Instrument [Line Items]
Debt, long-term and short-term, combined amount								$ 1,541,100,000		$ 1,545,000,000
Debt instrument periodic payment principal percentage	1.00%
2023 Dollar Term Loan [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.50%
2023 Dollar Term Loan [Member] | Eurocurrency Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.50%
2023 Euro Term Loan [Member]
Debt Instrument [Line Items]
Debt, long-term and short-term, combined amount | €									€ 400.0
2023 Euro Term Loan [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.75%
2024 Dollar Term Loans [Member]
Debt Instrument [Line Items]
Debt, long-term and short-term, combined amount								$ 2,000,000,000
Discount, percent of par								99.875%
Unamortized original issue discount								$ 2,500,000
2024 Dollar Term Loans [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%
2024 Dollar Term Loans [Member] | Eurocurrency Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.00%
2024 Dollar Term Loans [Member] | Eurocurrency Rate Loans [Member] | Interest Rate Floor [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.00%
New Euro Term Loan [Member] | Eurocurrency Rate Loans [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.25%
Basis spread reduced on variable rate				0.25%								0.25%
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.75%		3.50%
Senior Secured Credit Facilities [Member] | Eurodollar [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.00%
Step-down percent for 3.00:1.00 leverage ratio			2.50%
Step-down percent for 2.50:1.00 leverage ratio			2.25%
Senior Secured Credit Facility, Base Rate Loans [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			1.75%	2.50%
Step-down percent for 3.00:1.00 leverage ratio			1.50%
Step-down percent for 2.50:1.00 leverage ratio			1.25%
Senior Secured Credit Facility, Base Rate Loans [Member] | Eurodollar [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.00%
Senior Secured Credit Facility, Base Rate Loans [Member] | Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			0.50%
New Dollar Term Loan [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Basis spread reduced on variable rate				0.25%								0.25%
New Dollar Term Loan [Member] | Eurocurrency Rate Loans [Member]
Debt Instrument [Line Items]
Basis spread reduced on variable rate				0.25%								0.25%

XML

Borrowings - Senior Notes (Details) € in Millions, $ in Millions		3 Months Ended		9 Months Ended
	Aug. 16, 2016 EUR (€)	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 27, 2016 EUR (€)	Aug. 16, 2016 USD ($)	Feb. 01, 2013 EUR (€)	Feb. 01, 2013 USD ($)
Debt Instrument [Line Items]
Unamortized original issue discount				$ 9.6	$ 10.0
Build-to-suit Lease and Sale-leaseback Financing [Member]
Debt Instrument [Line Items]
Future minimum payments due				$ 14.2
2021 Euro Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage			104.313%
2021 Dollar Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	105.531%
2024 Dollar Senior Notes [Member]
Debt Instrument [Line Items]
Percentage if change in control occurs	101.00%
2024 Dollar Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage				103.656%
2021 Dollar Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount									$ 750.0
Debt instrument, interest rate, stated percentage								7.375%	7.375%
2021 Euro Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount | €								€ 250.0
Debt instrument, interest rate, stated percentage								5.75%	5.75%
2024 Dollar Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount							$ 500.0
Debt instrument, interest rate, stated percentage	4.875%						4.875%
Debt instrument, redemption price, percentage	104.875%
Discount, percent of par	99.951%						99.951%
Unamortized original issue discount							$ 2.0
Percent of principal required to be outstanding	50.00%
2024 Dollar Senior Notes [Member] | Any Time Prior to August 15, 2019 [Member]
Debt Instrument [Line Items]
Redemption price, percentage of principal amount redeemed	40.00%
2024 Euro Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount | €	€ 335.0
Debt instrument, interest rate, stated percentage	4.25%						4.25%
Debt instrument, redemption price, percentage	104.25%
Percent of principal required to be outstanding	50.00%
Percentage if change in control occurs	101.00%
2024 Euro Senior Notes [Member] | Any Time Prior to August 15, 2019 [Member]
Debt Instrument [Line Items]
Redemption price, percentage of principal amount redeemed	40.00%
2025 Euro Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount | €						€ 450.0
Debt instrument, interest rate, stated percentage						3.75%
Debt instrument, redemption price, percentage				103.75%
Percent of principal required to be outstanding				50.00%
Percentage if change in control occurs				101.00%
2025 Euro Senior Notes [Member] | Any Time Prior to January 15, 2020 [Member]
Debt Instrument [Line Items]
Redemption price, percentage of principal amount redeemed		40.00%

XML

Borrowings - Debt Instrument Redemption (Details)	9 Months Ended
	Sep. 30, 2017
2024 Dollar Senior Notes [Member] | 2019 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	103.656%
2024 Dollar Senior Notes [Member] | 2020 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	102.438%
2024 Dollar Senior Notes [Member] | 2021 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	101.219%
2024 Dollar Senior Notes [Member] | 2022 and thereafter [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	100.00%
2024 Euro Senior Notes [Member] | 2019 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	103.188%
2024 Euro Senior Notes [Member] | 2020 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	102.125%
2024 Euro Senior Notes [Member] | 2021 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	101.063%
2024 Euro Senior Notes [Member] | 2022 and thereafter [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	100.00%
2025 Euro Senior Notes [Member] | 2019 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	102.813%
2025 Euro Senior Notes [Member] | 2020 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	101.875%
2025 Euro Senior Notes [Member] | 2021 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	100.938%
2025 Euro Senior Notes [Member] | 2022 and thereafter [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument, redemption price, percentage	100.00%

XML

Borrowings - Schedule of Maturities of Long-term Debt (Details) $ in Millions	Sep. 30, 2017 USD ($)
Debt Disclosure [Abstract]
Remainder of 2017	$ 19.3
2018	28.9
2019	25.5
2020	25.4
2021	25.4
Thereafter	3,814.3
Long-term debt	$ 3,938.8

XML

Fair Value Accounting (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 4.7	$ 4.7	$ 4.4
Contingent consideration fair value	7.5	7.5	10.0
Adjustments to contingent consideration	0.7	4.6
2024 Dollar Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	502.5	502.5	500.0
2024 Euro Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	419.8	419.8	363.8
2025 Euro Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	558.7	558.7	472.2
2024 Dollar Term Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	2,079.8	2,079.8
2023 Euro Term Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	$ 471.8	$ 471.8	421.8
2023 Dollar Term Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value			$ 1,560.5

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Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative asset	$ 0.0	$ 0.1
Derivative liability	4.1	0.8
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset	0.0	0.1
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability	0.0	0.8
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability	3.0	0.0
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability	1.1	0.0
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative asset	0.1	0.1
Derivative liability	0.0	0.5
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset	0.1	0.0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset	0.0	0.1
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability	$ 0.0	$ 0.5

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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	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion)	$ 0.0	$ (1.7)	$ 3.7	$ 0.0
Interest Expense [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion)	(0.5)	1.7	0.2	4.9
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)	$ 0.4	$ (2.0)	$ 2.4	$ 1.3

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Derivative Financial Instruments - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Nonoperating Income (Expense) [Member] | Foreign Exchange Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Gain) loss on instruments not designated as hedges, net	$ 2.5	$ 0.4	$ 9.7	$ 4.4
Interest Expense [Member] | Interest Rate Cap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Gain) loss on instruments not designated as hedges, net	$ 0.2	$ 0.0	$ 0.6	$ 0.0

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Derivative Financial Instruments - Additional Information (Details) € in Millions	9 Months Ended
	Sep. 30, 2017 EUR (€)	Sep. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2013 EUR (€) swap	Dec. 31, 2013 USD ($) swap
Derivatives, Fair Value [Line Items]
Number of interest rate swaps | swap				5	5
2024 Dollar Term Loans [Member]
Derivatives, Fair Value [Line Items]
Derivative, notional amount			$ 600,000,000
Derivative, maturity date	Dec. 31, 2019
Number of interest rate caps			3
Derivative, cap interest rate			1.50%
Derivative, inception date	Sep. 30, 2017
Derivative instrument, deferred premium		$ 8,600,000
2023 Euro Term Loan [Member]
Derivatives, Fair Value [Line Items]
Derivative, maturity date	Dec. 31, 2019
Derivative, cap interest rate	1.25%	1.25%
Derivative, inception date	Sep. 30, 2017
Derivative instrument, premium		$ 600,000
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, notional amount					$ 1,173,000,000
Derivative, maturity date	Sep. 29, 2017
Interest Rate Cap [Member] | 2023 Euro Term Loan [Member]
Derivatives, Fair Value [Line Items]
Derivative, notional amount | €				€ 300.0
Derivative, cap interest rate				1.50%	1.50%
Derivative instrument, premium					$ 3,100,000
2023 Euro Term Loan [Member]
Derivatives, Fair Value [Line Items]
Derivative, notional amount | €	€ 388.0

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Segments - Reconciliation of Revenue from Segments to Consolidated (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) market Segment	Sep. 30, 2016 USD ($)
Segment Reporting, Revenue Reconciling Item [Line Items]
Number of operating segments | Segment			2
Number of end-markets served | market			4
Net sales	$ 1,091.8	$ 1,020.6	$ 3,188.1	$ 3,041.4
Performance Coatings [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	693.5	616.5	1,942.8	1,791.7
Performance Coatings [Member] | Refinish [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	395.3	431.7	1,205.1	1,259.3
Performance Coatings [Member] | Industrial [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	298.2	184.8	737.7	532.4
Transportation Coatings [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	398.3	404.1	1,245.3	1,249.7
Transportation Coatings [Member] | Light Vehicle [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	309.7	321.1	984.0	994.9
Transportation Coatings [Member] | Commercial Vehicle [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	$ 88.6	$ 83.0	$ 261.3	$ 254.8

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Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net sales	$ 1,091.8	$ 1,020.6	$ 3,188.1	$ 3,041.4
Equity in earnings (losses) in unconsolidated affiliates	0.1	(0.3)	0.5	0.0
Adjusted EBITDA	209.5	230.4	639.8	677.9
Investment in unconsolidated affiliates	15.4	14.8	15.4	14.8
Performance Coatings [Member]
Segment Reporting Information [Line Items]
Net sales	693.5	616.5	1,942.8	1,791.7
Equity in earnings (losses) in unconsolidated affiliates	0.0	(0.4)	0.2	(0.2)
Adjusted EBITDA	135.1	145.7	398.8	413.2
Investment in unconsolidated affiliates	3.1	3.3	3.1	3.3
Transportation Coatings [Member]
Segment Reporting Information [Line Items]
Net sales	398.3	404.1	1,245.3	1,249.7
Equity in earnings (losses) in unconsolidated affiliates	0.1	0.1	0.3	0.2
Adjusted EBITDA	74.4	84.7	241.0	264.7
Investment in unconsolidated affiliates	$ 12.3	$ 11.5	$ 12.3	$ 11.5

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Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income (loss) before income taxes	$ 58.4	$ (12.9)	$ 124.8	$ 102.8
Interest expense, net	37.7	42.9	109.1	140.8
Depreciation and amortization	88.6	81.2	255.9	235.8
EBITDA	184.7	111.2	489.8	479.4
Debt extinguishment and refinancing related costs	0.6	81.9	13.0	84.2
Foreign exchange remeasurement losses (gains)	3.5	4.5	8.3	30.0
Long-term employee benefit plan adjustments	(0.1)	0.8	0.4	2.1
Termination benefits and other employee related costs	5.8	16.3	6.6	25.2
Consulting and advisory fees	0.0	2.7	(0.1)	8.3
Transition Costs	1.9	0.0	5.8	0.0
Offering and transactional	0.5	3.0	6.1	4.4
Share-based compensation expense	9.2	10.0	30.5	31.6
Other adjustments	0.8	1.5	3.6	5.2
Dividends paid to noncontrolling interests	(1.8)	(1.5)	(2.7)	(3.0)
Deconsolidation Impacts and Impairment	4.4	0.0	78.5	10.5
Adjusted EBITDA	209.5	230.4	639.8	677.9
Gain (loss) on extinguishment of debt	(0.6)	(81.9)	(13.0)	(84.2)
Gains (losses) on restructuring of debt				(77.6)
Venezuela deconsolidation charge	0.0	0.0	70.9	0.0
Impairment charge on manufacturing facility	$ 4.4	0.0	7.6	10.5
Subsidiaries [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Exchange loss		(1.2)	(1.8)	(23.9)
Impairments of property				10.5
VENEZUELA | Subsidiaries [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Venezuela deconsolidation charge			$ 70.9
Term Loan [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gain (loss) on extinguishment of debt		$ (4.3)		$ (6.6)

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Shareholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jan. 01, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total stockholders’ equity, beginning balance			$ 1,246.6	$ 1,133.2
Cumulative effect of an accounting change					$ 43.9
Total stockholders’ equity, beginning balance	$ 1,434.3	$ 1,367.7	1,246.6	1,133.2	1,177.1
Net income	56.3	(5.4)	103.3	79.7
Other comprehensive income, net of tax	22.2	17.0	95.1	17.2
Recognition of stock-based compensation			30.5	31.6
Exercise of stock options			19.9	13.8
Treasury share repurchase			(58.4)
Noncontrolling interests of acquired subsidiaries				51.3
Dividends paid to noncontrolling interests			(2.7)	(3.0)
Total stockholders’ equity, ending balance	1,434.3	1,367.7	1,434.3	1,367.7
Parent [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total stockholders’ equity, beginning balance			1,125.1	1,065.7
Cumulative effect of an accounting change					43.9
Total stockholders’ equity, beginning balance	1,309.4	1,247.4	1,125.1	1,065.7	1,109.6
Net income			98.2	76.0
Other comprehensive income, net of tax			94.1	16.4
Recognition of stock-based compensation			30.5	31.6
Exercise of stock options			19.9	13.8
Treasury share repurchase			(58.4)
Noncontrolling interests of acquired subsidiaries				0.0
Dividends paid to noncontrolling interests			0.0	0.0
Total stockholders’ equity, ending balance	1,309.4	1,247.4	1,309.4	1,247.4
Noncontrolling Interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total stockholders’ equity, beginning balance			121.5	67.5
Total stockholders’ equity, beginning balance	124.9	120.3	121.5	67.5	$ 67.5
Net income			5.1	3.7
Other comprehensive income, net of tax			1.0	0.8
Recognition of stock-based compensation			0.0	0.0
Exercise of stock options			0.0	0.0
Treasury share repurchase			0.0
Noncontrolling interests of acquired subsidiaries				51.3
Dividends paid to noncontrolling interests			(2.7)	(3.0)
Total stockholders’ equity, ending balance	$ 124.9	$ 120.3	$ 124.9	$ 120.3

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Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss), beginning balance			$ (350.4)
Other comprehensive income, net of tax	$ 22.2	$ 17.0	95.1	$ 17.2
Accumulated other comprehensive income (loss), ending balance	(256.3)		(256.3)
Unrealized Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss), beginning balance			(292.2)	(232.8)
Current year deferrals to AOCI			88.3	15.9
Reclassifications from AOCI to Net income			0.0	0.0
Other comprehensive income, net of tax			88.3	15.9
Accumulated other comprehensive income (loss), ending balance	(203.9)	(216.9)	(203.9)	(216.9)
Pension Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss), beginning balance			(56.6)	(33.4)
Current year deferrals to AOCI			(0.3)	0.0
Reclassifications from AOCI to Net income			6.2	0.2
Other comprehensive income, net of tax			5.9	0.2
Accumulated other comprehensive income (loss), ending balance	(50.7)	(33.2)	(50.7)	(33.2)
Unrealized Gain (Loss) on Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss), beginning balance			0.4	0.1
Current year deferrals to AOCI			(0.1)	0.3
Reclassifications from AOCI to Net income			0.0	0.0
Other comprehensive income, net of tax			(0.1)	0.3
Accumulated other comprehensive income (loss), ending balance	0.3	0.4	0.3	0.4
Unrealized Gain (Losses) on Derivatives
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss), beginning balance			(2.0)	(3.2)
Current year deferrals to AOCI			1.7	(3.1)
Reclassifications from AOCI to Net income			(1.7)	3.1
Other comprehensive income, net of tax			0.0	0.0
Accumulated other comprehensive income (loss), ending balance	(2.0)	(3.2)	(2.0)	(3.2)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss), beginning balance			(350.4)	(269.3)
Current year deferrals to AOCI			89.6	13.1
Reclassifications from AOCI to Net income			4.5	3.3
Other comprehensive income, net of tax			94.1	16.4
Accumulated other comprehensive income (loss), ending balance	$ (256.3)	$ (252.9)	$ (256.3)	$ (252.9)

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Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Loss due to deconsolidation of Venezeula, net of tax	$ 5.9
Tax benefit on loss due to deconsolidation of Venezuela	2.6
Pension and other postretirement benefit plans, tax benefit (expense)	3.1	$ 0.0
Cumulative pension and other postretirement benefit plans, tax expense (benefits)	16.0	(13.4)
Unrealized gain (loss) on derivatives, income tax expense (benefit)	(1.1)	0.0
Cumulative unrealized gain (loss) on derivatives, income tax expense (benefit)	$ 2.2	$ (1.9)

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Venezuela (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Intercompany Foreign Currency Balance [Line Items]
Venezuela deconsolidation charge	$ 0	$ 0	$ 70,900,000	$ 0
Assets	6,812,600,000		6,812,600,000		$ 5,866,200,000
Accounts and notes receivable, net	889,000,000		889,000,000		$ 801,900,000
Net sales	1,091,800,000	1,020,600,000	3,188,100,000	3,041,400,000
VENEZUELA | Subsidiaries [Member]
Intercompany Foreign Currency Balance [Line Items]
Venezuela deconsolidation charge			70,900,000
Assets	30,000,000		30,000,000
Accounts and notes receivable, net	35,000,000		35,000,000
Benefit obligation, actuarial loss			5,900,000
Investments in subsidiaries	0		0
Net sales	$ 0	$ 19,400,000	$ 2,500,000	48,600,000
Asset impairment charges				$ 10,500,000