QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
2851 | ||||||||||||||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) |
(Title of class) | (Trading symbol) | (Exchange on which registered) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of goods sold | ||||||||||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||||||||
Other operating (benefits) charges | ( | |||||||||||||||||||||||||
Research and development expenses | ||||||||||||||||||||||||||
Amortization of acquired intangibles | ||||||||||||||||||||||||||
Income from operations | ||||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||
Other (income) expense, net | ( | ( | ||||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Provision (benefit) for income taxes | ( | |||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
Less: Net (loss) income attributable to noncontrolling interests | ( | ( | ||||||||||||||||||||||||
Net income attributable to controlling interests | $ | $ | $ | $ | ||||||||||||||||||||||
Basic net income per share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted net income per share | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive (loss) income, before tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | |||||||||||||||||||||||
Unrealized gain (loss) on derivatives | ( | |||||||||||||||||||||||||
Unrealized gain (loss) on pension and other benefit plan obligations | ( | ( | ||||||||||||||||||||||||
Other comprehensive (loss) income, before tax | ( | ( | ( | |||||||||||||||||||||||
Income tax provision (benefit) related to items of other comprehensive (loss) income | ( | |||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income (loss) | ( | |||||||||||||||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income (loss) attributable to controlling interests | $ | $ | $ | $ | ( |
September 30, 2021 | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Accounts and notes receivable, net | ||||||||||||||
Inventories | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, net | ||||||||||||||
Goodwill | ||||||||||||||
Identifiable intangibles, net | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities, Shareholders’ Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Current portion of borrowings | ||||||||||||||
Other accrued liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term borrowings | ||||||||||||||
Accrued pensions | ||||||||||||||
Deferred income taxes | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingent liabilities (Note 6) | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Common shares, $ | ||||||||||||||
Capital in excess of par | ||||||||||||||
Retained earnings | ||||||||||||||
Treasury shares, at cost, | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total Axalta shareholders’ equity | ||||||||||||||
Noncontrolling interests | ||||||||||||||
Total shareholders’ equity | ||||||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par/Stated Value | Capital In Excess Of Par | Retained Earnings | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on derivatives, net of tax of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $ | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Common stock purchases | ( | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared to noncontrolling interests | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on derivatives, net of tax of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $ | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Common stock purchases | ( | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on derivatives, net of tax of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $ | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock purchases | ( | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par/Stated Value | Capital In Excess Of Par | Retained Earnings | Treasury Shares, at cost | Accumulated Other Comprehensive Loss | Non controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized loss on derivatives, net of tax benefit of $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax of $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $ | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total comprehensive loss | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
— | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
Ownership changes relating to noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends declared to noncontrolling interests | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net realized and unrealized loss on derivatives, net of tax benefit of $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax benefit of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $ | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Changes in redeemable noncontrolling interests | — | — | ( | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Common stock purchases | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized loss on derivatives, net of tax of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Long-term employee benefit plans, net of tax of $ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of tax of $ | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustment to reconcile net income to cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Amortization of deferred financing costs and original issue discount | ||||||||||||||
Deferred income taxes | ( | |||||||||||||
Realized and unrealized foreign exchange losses, net | ||||||||||||||
Stock-based compensation | ||||||||||||||
Gain on sale of facility | ( | |||||||||||||
Interest income on swaps designated as net investment hedges | ( | ( | ||||||||||||
Other non-cash, net | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Trade accounts and notes receivable | ( | ( | ||||||||||||
Inventories | ( | |||||||||||||
Prepaid expenses and other assets | ( | ( | ||||||||||||
Accounts payable | ||||||||||||||
Other accrued liabilities | ( | |||||||||||||
Other liabilities | ||||||||||||||
Cash provided by operating activities | ||||||||||||||
Investing activities: | ||||||||||||||
Acquisitions, net of cash acquired | ( | |||||||||||||
Purchase of property, plant and equipment | ( | ( | ||||||||||||
Interest proceeds on swaps designated as net investment hedges | ||||||||||||||
Other investing activities, net | ||||||||||||||
Cash used for investing activities | ( | ( | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from long-term borrowings | ||||||||||||||
Payments on short-term borrowings | ( | ( | ||||||||||||
Payments on long-term borrowings | ( | ( | ||||||||||||
Financing-related costs | ( | ( | ||||||||||||
Purchases of common stock | ( | ( | ||||||||||||
Net cash flows associated with stock-based awards | ||||||||||||||
Purchase of noncontrolling interests | ( | |||||||||||||
Other financing activities, net | ( | |||||||||||||
Cash (used for) provided by financing activities | ( | |||||||||||||
(Decrease) increase in cash | ( | |||||||||||||
Effect of exchange rate changes on cash | ( | ( | ||||||||||||
Cash at beginning of period | ||||||||||||||
Cash at end of period | $ | $ | ||||||||||||
Cash at end of period reconciliation: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Cash at end of period | $ | $ |
Note | Page | |||||||
September 15, 2021 | ||||||||
Cash | $ | |||||||
Accounts and notes receivable, net | ||||||||
Inventories | ||||||||
Prepaid expenses and other current assets, net | ||||||||
Property, plant and equipment, net | ||||||||
Identifiable intangible assets | ||||||||
Other assets | ||||||||
Accounts payable | ( | |||||||
Other accrued liabilities | ( | |||||||
Other liabilities | ( | |||||||
Deferred income taxes | ( | |||||||
Net assets before goodwill from acquisition | ||||||||
Goodwill from acquisition | ||||||||
Net assets acquired | $ |
Performance Coatings | Mobility Coatings | Total | ||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | |||||||||||||||||
Goodwill from acquisitions | ||||||||||||||||||||
Foreign currency translation | ( | ( | ( | |||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ |
September 30, 2021 | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Weighted average amortization periods (years) | ||||||||||||||||||||||
Technology | $ | $ | ( | $ | ||||||||||||||||||||||
Trademarks—indefinite-lived | — | Indefinite | ||||||||||||||||||||||||
Trademarks—definite-lived | ( | |||||||||||||||||||||||||
Customer relationships | ( | |||||||||||||||||||||||||
Other | ( | |||||||||||||||||||||||||
Total | $ | $ | ( | $ |
December 31, 2020 | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Weighted average amortization periods (years) | ||||||||||||||||||||||
Technology | $ | $ | ( | $ | ||||||||||||||||||||||
Trademarks—indefinite-lived | — | Indefinite | ||||||||||||||||||||||||
Trademarks—definite-lived | ( | |||||||||||||||||||||||||
Customer relationships | ( | |||||||||||||||||||||||||
Other | ( | |||||||||||||||||||||||||
Total | $ | $ | ( | $ |
Remainder of 2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 |
2021 Activity | ||||||||
Balance at December 31, 2020 | $ | |||||||
Expenses, net of changes to estimates | ||||||||
Payments made | ( | |||||||
Foreign currency translation | ( | |||||||
Balance at September 30, 2021 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||
Net periodic benefit cost: | ||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of actuarial loss, net | ||||||||||||||||||||||||||
Amortization of prior service cost, net | ( | ( | ||||||||||||||||||||||||
Plan curtailments | ( | ( | ||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
Stock Options | Awards (in millions) | Weighted- Average Exercise Price | Aggregate Intrinsic Value (in millions) | Weighted Average Remaining Contractual Life (years) | ||||||||||||||||||||||
Outstanding at January 1, 2021 | $ | |||||||||||||||||||||||||
Granted | $ | |||||||||||||||||||||||||
Exercised | ( | $ | ||||||||||||||||||||||||
Forfeited / Expired | ( | $ | ||||||||||||||||||||||||
Outstanding at September 30, 2021 | $ | |||||||||||||||||||||||||
Vested and expected to vest at September 30, 2021 | $ | $ | ||||||||||||||||||||||||
Exercisable at September 30, 2021 | $ | $ |
Restricted Stock Awards and Restricted Stock Units (1) | Awards/Units (millions) | Weighted-Average Fair Value | ||||||||||||
Outstanding at January 1, 2021 | $ | |||||||||||||
Granted | $ | |||||||||||||
Vested | ( | $ | ||||||||||||
Forfeited | ( | $ | ||||||||||||
Outstanding at September 30, 2021 | $ |
Performance Stock Awards and Performance Share Units (1) | Awards/Units (millions) | Weighted-Average Fair Value | ||||||||||||
Outstanding at January 1, 2021 | $ | |||||||||||||
Granted | $ | |||||||||||||
Vested | $ | |||||||||||||
Forfeited | ( | $ | ||||||||||||
Outstanding at September 30, 2021 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Foreign exchange (gain) losses, net | $ | ( | $ | $ | $ | |||||||||||||||||||||
Debt extinguishment and refinancing related costs | ||||||||||||||||||||||||||
Other miscellaneous income, net (1) | ( | ( | ( | ( | ||||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ |
Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Effective Tax Rate | % | ( | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(In millions, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net income to common shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Basic weighted average shares outstanding | ||||||||||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||||||||
Net income per common share: | ||||||||||||||||||||||||||
Basic net income per share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted net income per share | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||
Accounts receivable - trade, net (1) | $ | $ | ||||||||||||
Notes receivable | ||||||||||||||
Other (2) | ||||||||||||||
Total | $ | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||
Finished products | $ | $ | ||||||||||||
Semi-finished products | ||||||||||||||
Raw materials | ||||||||||||||
Stores and supplies | ||||||||||||||
Total | $ | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||
Property, plant and equipment | $ | $ | ||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Property, plant, and equipment, net | $ | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||
2024 Dollar Term Loans | $ | $ | ||||||||||||
2025 Euro Senior Notes | ||||||||||||||
2027 Dollar Senior Notes | ||||||||||||||
2029 Dollar Senior Notes | ||||||||||||||
Short-term and other borrowings | ||||||||||||||
Unamortized original issue discount | ( | ( | ||||||||||||
Unamortized deferred financing costs | ( | ( | ||||||||||||
Total borrowings, net | ||||||||||||||
Less: | ||||||||||||||
Short-term borrowings | ||||||||||||||
Current portion of long-term borrowings | ||||||||||||||
Long-term debt | $ | $ |
Remainder of 2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total borrowings | ||||||||
Unamortized original issue discount | ( | |||||||
Unamortized deferred financing costs | ( | |||||||
Total borrowings, net | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps (2) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other accrued liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||
2024 Dollar Term Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
2025 Euro Senior Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||
2027 Dollar Senior Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||
2029 Dollar Senior Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Using Significant Unobservable Inputs (Level 3) | ||||||||
Beginning balance January 1, 2021 | $ | |||||||
Business acquisition | ||||||||
Ending balance at September 30, 2021 | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||
AOCI: | ||||||||||||||
Interest rate caps (cash flow hedges) | $ | $ | ||||||||||||
Interest rate swaps (cash flow hedges) | ||||||||||||||
Foreign currency forward contracts (cash flow hedges) | ||||||||||||||
Cross-currency swaps (net investment hedges) | ( | |||||||||||||
Total AOCI | $ | $ |
For the Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Derivatives in Cash Flow and Net Investment Hedges | Location of Loss (Gain) Recognized in Income on Derivatives | Net Amount of Loss (Gain) Recognized in OCI on Derivatives | Amount of Loss (Gain) Recognized in Income | Net Amount of Loss Recognized in OCI on Derivatives | Amount of Loss (Gain) Recognized in Income | |||||||||||||||||||||||||||
Interest rate caps | Interest expense, net | $ | $ | $ | $ | |||||||||||||||||||||||||||
Interest rate swaps | Interest expense, net | |||||||||||||||||||||||||||||||
Foreign currency forward contracts | Cost of goods sold | |||||||||||||||||||||||||||||||
Cross-currency swaps | Interest expense, net | ( | ( | ( |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Derivatives in Cash Flow and Net Investment Hedges | Location of Loss (Gain) Recognized in Income on Derivatives | Net Amount of (Gain) Recognized in OCI on Derivatives | Amount of Loss (Gain) Recognized in Income | Net Amount of Loss (Gain) Recognized in OCI on Derivatives | Amount of Loss (Gain) Recognized in Income | |||||||||||||||||||||||||||
Interest rate caps | Interest expense, net | $ | $ | $ | $ | |||||||||||||||||||||||||||
Interest rate swaps | Interest expense, net | |||||||||||||||||||||||||||||||
Foreign currency forward contracts | Cost of goods sold | |||||||||||||||||||||||||||||||
Cross-currency swaps | Interest expense, net | ( | ( | ( | ( |
Derivatives Not Designated as Hedging Instruments under ASC 815 | Location of Loss Recognized in Income on Derivatives | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Foreign currency forward contracts | Other (income) expense, net | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net sales (1): | ||||||||||||||||||||||||||
Refinish | $ | $ | $ | $ | ||||||||||||||||||||||
Industrial | ||||||||||||||||||||||||||
Total Net sales Performance Coatings | ||||||||||||||||||||||||||
Light Vehicle | ||||||||||||||||||||||||||
Commercial Vehicle | ||||||||||||||||||||||||||
Total Net sales Mobility Coatings | ||||||||||||||||||||||||||
Total Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Depreciation and amortization expense (2): | ||||||||||||||||||||||||||
Performance Coatings | $ | $ | $ | $ | ||||||||||||||||||||||
Mobility Coatings | ||||||||||||||||||||||||||
Total Depreciation and amortization expense | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Segment Adjusted EBIT (1): | ||||||||||||||||||||||||||
Performance Coatings | $ | $ | $ | $ | ||||||||||||||||||||||
Mobility Coatings | ( | |||||||||||||||||||||||||
Total (2) | ||||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||
Debt extinguishment and refinancing related costs (a) | ||||||||||||||||||||||||||
Termination benefits and other employee related costs (b) | ||||||||||||||||||||||||||
Strategic review and retention costs (c) | ||||||||||||||||||||||||||
Acquisition and divestiture-related costs (d) | ||||||||||||||||||||||||||
Impairment (benefits) charges(e) | ( | ( | ||||||||||||||||||||||||
Pension special events (f) | ( | ( | ||||||||||||||||||||||||
Accelerated depreciation (g) | ||||||||||||||||||||||||||
Indemnity (income) loss (h) | ( | ( | ||||||||||||||||||||||||
Operational matter (i) | ( | |||||||||||||||||||||||||
Brazil indirect tax (j) | ( | |||||||||||||||||||||||||
Gain on sale of facility (k) | ( | ( | ||||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ |
(1) | The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBIT is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents Adjusted EBIT adjusted for the select items referred to above. | ||||
(2) | Does not represent Adjusted EBIT referenced elsewhere by the Company as there are additional adjustments that are not allocated to the segments. | ||||
(a) | Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. | ||||
(b) | Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are primarily associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance. | ||||
(c) | Represents costs for legal, tax and other advisory fees pertaining to our review of strategic alternatives that was concluded in March 2020, as well as retention awards for certain employees that were earned over a period of | ||||
(d) | Represents acquisition and divestiture-related expenses and non-cash fair value inventory adjustments associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. | ||||
(e) | Represents impairment (benefits) charges, which are not considered indicative of our ongoing performance. The current year benefit primarily reflects a recovered gain on a previously impaired asset. | ||||
(f) | Represents certain defined benefit pension costs associated with special events, including pension curtailments, settlements and special termination benefits, which we do not consider indicative of our ongoing operating performance. | ||||
(g) | Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance. | ||||
(h) | Represents indemnity income associated with acquisitions, which we do not consider indicative of our ongoing operating performance. | ||||
(i) | Represents expenses, changes in estimates and insurance recoveries for probable liabilities related to an operational matter in the Mobility Coatings segment discussed further in Note 6, which is not indicative of our ongoing operating performance. | ||||
(j) | Represents non-recurring income related to a law change with respect to certain Brazilian indirect taxes which was recorded within other (income) expense, net. | ||||
(k) | Represents non-recurring income related to the sale of a previously closed manufacturing facility. | ||||
Unrealized Currency Translation Adjustments | Pension Adjustments | Unrealized (Loss) Gain on Derivatives | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Current year deferrals to AOCI | ( | ( | ||||||||||||||||||||||||
Reclassifications from AOCI to Net income | ||||||||||||||||||||||||||
Net Change | ( | ( | ||||||||||||||||||||||||
Balance at March 31, 2021 | ( | ( | ( | ( | ||||||||||||||||||||||
Current year deferrals to AOCI | ( | |||||||||||||||||||||||||
Reclassifications from AOCI to Net income | ||||||||||||||||||||||||||
Net Change | ||||||||||||||||||||||||||
Balance at June 30, 2021 | ( | ( | ( | ( | ||||||||||||||||||||||
Current year deferrals to AOCI | ( | ( | ( | |||||||||||||||||||||||
Reclassifications from AOCI to Net income | ||||||||||||||||||||||||||
Net Change | ( | ( | ||||||||||||||||||||||||
Balance at September 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
Unrealized Currency Translation Adjustments | Pension Adjustments | Unrealized (Loss) Gain on Derivatives | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Current year deferrals to AOCI | ( | ( | ( | |||||||||||||||||||||||
Reclassifications from AOCI to Net income | ( | |||||||||||||||||||||||||
Net Change | ( | ( | ( | ( | ||||||||||||||||||||||
Balance at March 31, 2020 | ( | ( | ( | ( | ||||||||||||||||||||||
Current year deferrals to AOCI | ( | |||||||||||||||||||||||||
Reclassifications from AOCI to Net loss | ||||||||||||||||||||||||||
Net Change | ( | |||||||||||||||||||||||||
Balance at June 30, 2020 | ( | ( | ( | ( | ||||||||||||||||||||||
Current year deferrals to AOCI | ( | ( | ||||||||||||||||||||||||
Reclassifications from AOCI to Net income | ( | |||||||||||||||||||||||||
Net Change | ( | |||||||||||||||||||||||||
Balance at September 30, 2020 | $ | ( | $ | ( | $ | ( | $ | ( |
(In millions) | Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | ||||||||||||||||||||||||||||||||||
2021 | 2020 | % change | 2021 | 2020 | % change | |||||||||||||||||||||||||||||||||
Performance Coatings | ||||||||||||||||||||||||||||||||||||||
Refinish | $ | 443.4 | $ | 401.7 | 10.4 | % | $ | 1,305.5 | $ | 1,031.4 | 26.6 | % | ||||||||||||||||||||||||||
Industrial | 335.8 | 281.0 | 19.5 | % | 986.8 | 781.1 | 26.3 | % | ||||||||||||||||||||||||||||||
Total Net sales Performance Coatings | 779.2 | 682.7 | 14.1 | % | 2,292.3 | 1,812.5 | 26.5 | % | ||||||||||||||||||||||||||||||
Mobility Coatings | ||||||||||||||||||||||||||||||||||||||
Light Vehicle | 235.4 | 276.3 | (14.8) | % | 758.2 | 662.7 | 14.4 | % | ||||||||||||||||||||||||||||||
Commercial Vehicle | 74.0 | 67.9 | 9.0 | % | 228.5 | 187.9 | 21.6 | % | ||||||||||||||||||||||||||||||
Total Net sales Mobility Coatings | 309.4 | 344.2 | (10.1) | % | 986.7 | 850.6 | 16.0 | % | ||||||||||||||||||||||||||||||
Total Net sales | $ | 1,088.6 | $ | 1,026.9 | 6.0 | % | $ | 3,279.0 | $ | 2,663.1 | 23.1 | % |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,088.6 | $ | 1,026.9 | $ | 61.7 | 6.0 | % | $ | 3,279.0 | $ | 2,663.1 | $ | 615.9 | 23.1 | % | ||||||||||||||||||||||||||||||||||
Volume effect | (1.6) | % | 14.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Impact of acquisitions | 1.8 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Price/Mix effect | 4.5 | % | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate effect | 1.3 | % | 3.0 | % |
Net sales increased due to the following: | ||
n Higher average selling price across both segments and most regions as a result of pricing actions taken to offset input price inflation | ||
n Favorable impact from acquisitions | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
Partially offset by: | ||
n Lower sales volumes driven by Mobility Coatings as a result of customer production limitations due to semiconductor chip and other supply chain shortages |
Net sales increased due to the following: | ||
n Higher sales volumes across both segments as a result of demand recovery from the impacts of COVID-19, muted by customer production limitations resulting from semiconductor and other supply-chain shortages | ||
n Higher average selling price driven in both segments and most regions as a result of pricing actions taken to offset input price inflation | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Cost of sales | $ | 745.3 | $ | 634.1 | $ | 111.2 | 17.5 | % | $ | 2,182.6 | $ | 1,780.1 | $ | 402.5 | 22.6 | % | ||||||||||||||||||||||||||||||||||
% of net sales | 68.5 | % | 61.7 | % | 66.6 | % | 66.8 | % |
Cost of sales increased due to the following: | ||
n Higher variable input costs due to raw material inflation and supply chain impacts | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
n Unfavorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
n Increased costs associated with the acquisitions | ||
Partially offset by: | ||
n Lower sales volumes driven by Mobility Coatings as a result of customer production limitations due to semiconductor chip and other supply chain shortages | ||
Cost of sales as a percentage of net sales increased due to the following: | ||
n Higher variable input costs due to raw material inflation and supply chain impacts | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
n Lower sales volume covering fixed costs | ||
Partially offset by: | ||
n Higher average selling prices |
Cost of sales increased due to the following: | ||
n Higher sales volumes across both segments as a result of demand recovery from the impacts of COVID-19 | ||
n Higher variable input costs due to raw material inflation and supply chain impacts | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions | ||
n Unfavorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
n Increased costs associated with the acquisitions | ||
Partially offset by: | ||
n Reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives, partially offset by the lapse of temporary cost savings in the prior year | ||
n Decreased expenses of $35.2 million associated with improved utilization at manufacturing sites in the current year as manufacturing utilization was negatively impacted in the 2020 period due to impacts from COVID-19 | ||
n Lower expenses in 2021 compared to 2020 of $7.9 million resulting from fewer inventory write-offs | ||
Cost of sales as a percentage of net sales decreased due to the following: | ||
n Higher sales volume covering fixed costs | ||
n Decreased expenses of $35.2 million associated with improved utilization at manufacturing sites in the current year as manufacturing utilization was negatively impacted in the 2020 period due to impacts from COVID-19 | ||
Partially offset by: | ||
n Higher variable input costs due to raw material inflation | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
SG&A | $ | 181.0 | $ | 166.5 | $ | 14.5 | 8.7 | % | $ | 544.3 | $ | 516.1 | $ | 28.2 | 5.5 | % | ||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses increased due to the following: | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
n Increased expenses as a result of acquisitions | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions | ||
n Unfavorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
Partially offset by: | ||
n Lower bad debt expenses in 2021 compared to 2020 of $2.0 million associated with trade receivables |
Selling, general and administrative expenses increased due to the following: | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
n Increase in commissions and sales incentive compensation driven by increased sales | ||
n Increased expenses as a result of acquisitions | ||
n Increased compensation-related expenses compared to the prior year, which were lower due to temporary COVID-19 related cost reduction actions | ||
n Unfavorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
Partially offset by: | ||
n Lower bad debt expenses in 2021 compared to 2020 of $11.5 million associated with trade receivables |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Other operating (benefits) charges | $ | (7.6) | $ | 42.6 | $ | (50.2) | (117.8) | % | $ | 49.5 | $ | 98.9 | $ | (49.4) | (49.9) | % | ||||||||||||||||||||||||||||||||||
Other operating (benefits) charges changed due to the following: | ||
n Decrease of $26.1 million in termination benefits and other employee related costs associated with our cost saving initiatives from $35.7 million in the prior year to $9.6 million in the current year | ||
n Benefits of $18.7 million in the current year related to an operational matter in our Mobility Coatings segment discussed further in Note 6 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q | ||
n Gain of $7.9 million in the current year related to the sale of a manufacturing facility | ||
n Decrease of $4.8 million associated with retention award amortization, from $6.9 million in the prior year to $2.1 million the current year | ||
Partially offset by: | ||
n Increase of $7.9 million related to expenses for acquisition activity during the current year |
Other operating (benefits) charges changed due to the following: | ||
n Decrease of $35.3 million in termination benefits and other employee related costs associated with our cost saving initiatives from $70.4 million in the prior year to $35.1 million in the current year | ||
n Decrease of $15.4 million associated with the review of strategic alternatives that was concluded in March 2020 and retention awards, from $25.1 million in the prior year to $9.7 million in the current year | ||
n Gain of $7.9 million in the current year related to the sale of a manufacturing facility | ||
n Decrease of $4.3 in impairment charges primarily related to impairments and associated write-downs in the prior year resulting from our decision to exit the Performance Coatings segment business in Argentina, which did not exist in the current year | ||
Partially offset by: | ||
n Increase of $9.3 million related to expenses for acquisition activity during the current year | ||
n Increase of $3.9 million in the current year as a result of a charge recorded in relation to probable liabilities for an operational matter in our Mobility Coatings segment discussed further in Note 6 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Research and development expenses | $ | 15.4 | $ | 13.4 | $ | 2.0 | 14.9 | % | $ | 46.8 | $ | 41.2 | $ | 5.6 | 13.6 | % |
Research and development expenses increased due to the following: | ||
n Increase in compensation-related expenses and other spending due to the absence of temporary cost savings initiatives that were in place during 2020 | ||
Research and development expenses increased due to the following: | ||
n Increase in compensation-related expenses and other spending due to the absence of temporary cost savings initiatives that were in place during 2020 | ||
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangibles | $ | 29.8 | $ | 28.6 | $ | 1.2 | 4.2 | % | $ | 88.1 | $ | 84.5 | $ | 3.6 | 4.3 | % |
Amortization of acquired intangibles increased due to the following: | ||
n Amortization related to intangible assets acquired in our recent acquisitions | ||
n Unfavorable impacts of foreign currency translation, primarily related to fluctuations of the Euro compared to the U.S. dollar |
Amortization of acquired intangibles increased due to the following: | ||
n Amortization related to intangible assets acquired in our recent acquisitions | ||
n Unfavorable impacts of foreign currency translation, primarily related to fluctuations of the Euro compared to the U.S. dollar |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | $ | 33.8 | $ | 39.8 | $ | (6.0) | (15.1) | % | $ | 100.7 | $ | 112.4 | $ | (11.7) | (10.4) | % | ||||||||||||||||||||||||||||||||||
Interest expense, net decreased primarily due to the following: | ||
n Decrease in variable and fixed interest rates due to LIBOR decreases on our variable rate debt over the comparable period and benefits on our fixed rate debt obtained during our debt refinancing activity in November 2020 | ||
n Favorable impacts of our derivative instruments used to hedge the variable interest rate exposure on certain debt arrangements | ||
Interest expense, net decreased primarily due to the following: | ||
n Decrease in variable and fixed interest rates due to LIBOR decreases on our variable rate debt over the comparable period and benefits on our fixed rate debt obtained during our debt refinancing activity in November 2020 | ||
Partially offset by: | ||
n Unfavorable impacts of our derivative instruments used to hedge the variable interest rate exposure on certain debt arrangements | ||
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | $ | (2.4) | $ | 2.3 | $ | (4.7) | 204.3 | % | $ | (10.9) | $ | 0.9 | $ | (11.8) | (1,311.1) | % |
Other (income) expense, net changed due to the following: | ||
n Favorable impact of foreign exchange gain of $6.2 million when compared with the prior year period | ||
Partially offset by: | ||
n A net benefit of $0.7 million during the prior period as a result of pension curtailment and settlements released from accumulated other comprehensive loss, partially offset by special termination benefits, which does not exist in the current year |
Other (income) expense, net changed due to the following: | ||
n Income of $8.3 million recorded in 2021 related to a law change with respect to certain Brazilian indirect taxes | ||
n Reduction in debt extinguishment and refinancing related costs of $2.2 million | ||
n Favorable impact of foreign exchange losses of $4.6 million when compared with the prior year period | ||
Partially offset by: | ||
n A net benefit of $2.5 million during the prior period as a result of pension curtailment and settlements released from accumulated other comprehensive loss, partially offset by special termination benefits, which does not exist in the current year |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Income before income taxes | $ | 93.3 | $ | 99.6 | $ | 277.9 | $ | 29.0 | ||||||||||||||||||
Provision (benefit) for income taxes | 24.4 | 17.1 | 66.9 | (22.7) | ||||||||||||||||||||||
Statutory U.S. Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||||||
Effective tax rate | 26.2 | % | 17.2 | % | 24.1 | % | (78.3) | % | ||||||||||||||||||
Effective tax rate vs. statutory U.S. Federal income tax rate | 5.2 | % | (3.8) | % | 3.1 | % | (99.3) | % |
(Favorable) Unfavorable Impact | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Items impacting the effective tax rate vs. statutory U.S. federal income tax rate | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Earnings generated in jurisdictions where the statutory rate is different from the U.S. Federal rate (1) | $ | (3.7) | $ | (7.0) | $ | (10.7) | $ | (12.9) | ||||||||||||||||||
Changes in valuation allowance | 4.7 | (1.1) | 17.2 | (3.5) | ||||||||||||||||||||||
Foreign exchange gain (loss), net | (0.6) | 2.1 | (1.2) | 10.6 | ||||||||||||||||||||||
Non-deductible expenses and interest | 2.1 | 0.9 | 4.2 | 4.0 | ||||||||||||||||||||||
Increase in unrecognized tax benefits(2) | 1.8 | 1.8 | 5.5 | 21.1 | ||||||||||||||||||||||
Intra-entity asset transfer (3) | — | — | — | (50.5) | ||||||||||||||||||||||
Foreign taxes | 1.2 | 0.9 | 4.5 | 4.4 |
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 779.2 | $ | 682.7 | $ | 96.5 | 14.1 | % | $ | 2,292.3 | $ | 1,812.5 | $ | 479.8 | 26.5 | % | ||||||||||||||||||||||||||||||||||
Volume effect | 5.2 | % | 16.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Impact of acquisitions | 2.7 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Price/Mix effect | 5.0 | % | 5.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate effect | 1.2 | % | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT | $ | 122.8 | $ | 133.9 | $ | (11.1) | (8.3) | % | $ | 379.7 | $ | 214.8 | $ | 164.9 | 76.8 | % | ||||||||||||||||||||||||||||||||||
Adjusted EBIT Margin | 15.8 | % | 19.6 | % | 16.6 | % | 11.9 | % |
Net sales increased due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 | ||
n Higher average selling prices and product mix across both end-markets, driven by price actions within both end-markets to offset raw material inflation | ||
n Favorable impact from acquisitions closed during 2021 | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar |
Adjusted EBIT decreased due to the following: | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
Partially offset by: | ||
n Higher average selling prices and product mix across both end-markets and most regions | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 | ||
Adjusted EBIT margins decreased during the three months ended September 30, 2021 due to the following: | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
Partially offset by: | ||
n Higher average selling prices and product mix across both end-markets and most regions | ||
Net sales increased due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 | ||
n Higher average selling prices and product mix across both end-markets, driven by price actions within both end-markets and improved product mix in Refinish North America | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
n Favorable impact from acquisitions closed during 2021 | ||
Adjusted EBIT increased due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 | ||
n Lower manufacturing expenses of $14.3 million compared to the prior year as a result of underutilized manufacturing assets in the prior year period due to COVID-19 demand impacts | ||
n Higher average selling prices and product mix across both end-markets and most regions | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro, Chinese Renminbi, and Canadian Dollar compared to the U.S. dollar | ||
Partially offset by: | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
Adjusted EBIT margins increased during the nine months ended September 30, 2021 due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 | ||
n Lower manufacturing expenses of $14.3 million compared to the prior year as a result of underutilized manufacturing assets in the prior year period due to COVID-19 demand impacts | ||
n Higher average selling prices and product mix across both end-markets, driven by price actions within both end-markets and improved product mix in Refinish North America | ||
Partially offset by: | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
Three Months Ended September 30, | 2021 vs 2020 | Nine Months Ended September 30, | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 309.4 | $ | 344.2 | $ | (34.8) | (10.1) | % | $ | 986.7 | $ | 850.6 | $ | 136.1 | 16.0 | % | ||||||||||||||||||||||||||||||||||
Volume effect | (15.2) | % | 12.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Price/Mix effect | 3.6 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate effect | 1.5 | % | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT | $ | (2.7) | $ | 48.5 | $ | (51.2) | (105.6) | % | $ | 42.2 | $ | 35.0 | $ | 7.2 | (20.6) | % | ||||||||||||||||||||||||||||||||||
Adjusted EBIT Margin | (0.9) | % | 14.1 | % | 4.3 | % | 4.1 | % |
Net sales decreased due to the following: | ||
n Lower sales volumes driven by Light Vehicle as a result of customer production limitations due to semiconductor chip and other supply chain shortages | ||
Partially offset by: | ||
n Higher average selling prices and product mix across both end-markets and most regions driven by price actions | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Chinese Renminbi, Brazilian Real and Euro compared to the U.S. dollar |
Adjusted EBIT decreased due to the following: | ||
n Lower sales volumes driven by Light Vehicle as a result of customer production limitations due to semiconductor chip and other supply chain shortages | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives | ||
Partially offset by: | ||
n Higher average selling prices and product mix driven by driven by price actions in Light Vehicle | ||
Adjusted EBIT margins decreased during the three months ended September 30, 2021 due to the following: | ||
n Lower sales volumes to cover fixed costs | ||
n Higher variable input costs across both end-markets and all regions due to raw material inflation | ||
n Higher operating costs due to the lapse of temporary cost savings in the prior year, partially offset by the reduction in costs resulting from operational efficiencies associated with our structural cost savings initiatives |
Net sales increased due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19, partially offset by customer production limitations due to semiconductor chip and other supply chain shortages | ||
n Favorable impacts of currency translation, due primarily to the fluctuations of the Euro and Chinese Renminbi compared to the U.S. dollar | ||
n Higher average selling prices and product mix driven by driven by Light Vehicle price actions within most regions |
Adjusted EBIT increased due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19, partially offset by customer production limitations due to semiconductor chip and other supply chain shortages | ||
n Higher average selling price and product mix driven by price actions | ||
n Lower manufacturing expenses of $20.9 million compared to the prior year as a result of underutilized manufacturing assets in the prior year period due to COVID-19 demand impacts | ||
Partially offset by: | ||
n Higher variable input costs due to raw material inflation | ||
Adjusted EBIT margins remained roughly the same during the nine months ended September 30, 2021 due to the following: | ||
n Higher sales volumes across both end-markets as a result of demand recovery from the impacts of COVID-19 to cover fixed costs | ||
n Higher average selling price and product mix driven by driven by price actions | ||
n Lower manufacturing expenses of $20.9 million compared to the prior year as a result of underutilized manufacturing assets in the prior year period due to COVID-19 demand impacts | ||
Largely offset by: | ||
n Higher variable input costs due to raw material inflation |
Nine Months Ended September 30, | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Net cash provided by (used for): | ||||||||||||||
Operating activities: | ||||||||||||||
Net income | $ | 211.0 | $ | 51.7 | ||||||||||
Depreciation and amortization | 234.7 | 243.6 | ||||||||||||
Amortization of deferred financing costs and original issue discount | 6.7 | 6.8 | ||||||||||||
Deferred income taxes | 9.3 | (57.2) | ||||||||||||
Realized and unrealized foreign exchange losses, net | 9.5 | 12.7 | ||||||||||||
Stock-based compensation | 11.7 | 15.9 | ||||||||||||
Gain on sale of facility | (8.9) | — | ||||||||||||
Interest income on swaps designated as net investment hedges | (14.3) | (11.0) | ||||||||||||
Other non-cash, net | 11.3 | 8.6 | ||||||||||||
Net income adjusted for non-cash items | 471.0 | 271.1 | ||||||||||||
Changes in operating assets and liabilities | (181.0) | (40.2) | ||||||||||||
Operating activities | 290.0 | 230.9 | ||||||||||||
Investing activities | (719.9) | (39.3) | ||||||||||||
Financing activities | (279.5) | 136.8 | ||||||||||||
Effect of exchange rate changes on cash | (16.5) | (4.7) | ||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (725.9) | $ | 323.7 |
(In millions) | September 30, 2021 | December 31, 2020 | ||||||||||||
2024 Dollar Term Loans | $ | 2,045.0 | $ | 2,063.2 | ||||||||||
2025 Euro Senior Notes | 525.2 | 552.1 | ||||||||||||
2027 Dollar Senior Notes | 500.0 | 500.0 | ||||||||||||
2029 Dollar Senior Notes | 700.0 | 700.0 | ||||||||||||
Short-term and other borrowings | 106.4 | 118.0 | ||||||||||||
Unamortized original issue discount | (5.1) | (6.3) | ||||||||||||
Unamortized deferred financing costs | (29.0) | (34.3) | ||||||||||||
Total borrowings, net | 3,842.5 | 3,892.7 | ||||||||||||
Less: | ||||||||||||||
Short-term borrowings | 19.0 | 29.9 | ||||||||||||
Current portion of long-term borrowings | 24.3 | 24.3 | ||||||||||||
Long-term debt | $ | 3,799.2 | $ | 3,838.5 |
(in millions, except per share data) | ||||||||||||||||||||||||||
Month | Total Number of Shares Purchased(1) | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Programs(1) | Approximate Dollar Value of Shares That May Yet Be Purchased Under Our Share Repurchase Program(1)(2) | ||||||||||||||||||||||
July 2021 | 1.4 | $ | 28.97 | 1.4 | $ | 697.5 | ||||||||||||||||||||
August 2021 | — | — | — | 697.5 | ||||||||||||||||||||||
September 2021 | 1.7 | 29.09 | 1.7 | 647.4 | ||||||||||||||||||||||
Total | 3.1 | $ | 29.04 | 3.1 | $ | 647.4 |
EXHIBIT NO. | DESCRIPTION OF EXHIBITS | ||||
2.1* | |||||
2.2* | |||||
31.1 | |||||
31.2 | |||||
32.1† | |||||
32.2† | |||||
101 | INS - Inline XBRL Instance Document. The document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | ||||
101 | SCH - Inline XBRL Taxonomy Extension Schema Document | ||||
101 | CAL - Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101 | DEF - Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101 | LAB - Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101 | PRE - Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
* | Certain schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. | ||||
† | 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. |
AXALTA COATING SYSTEMS LTD. | |||||||||||
Date: | October 25, 2021 | By: /s/ Robert W. Bryant | |||||||||
Robert W. Bryant | |||||||||||
Chief Executive Officer and President | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | October 25, 2021 | By: /s/ Sean M. Lannon | |||||||||
Sean M. Lannon | |||||||||||
Senior Vice President and Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
Date: | October 25, 2021 | By: /s/ Anthony Massey | |||||||||
Anthony Massey | |||||||||||
Vice President and Global Controller | |||||||||||
(Principal Accounting Officer) |
Dated 6 July 2021 | ||
THE INSTITUTIONAL SELLERS THE MANAGEMENT SELLERS AXALTA COATING SYSTEMS UK HOLDING LIMITED and AXALTA COATING SYSTEMS LTD. SALE AND PURCHASE AGREEMENT relating to U-POL HOLDINGS LIMITED |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
Graphite: | |||||
For the attention of: | James Markham | ||||
Address: | c/o Graphite Capital Management LLP, 7 Air Street, Soho, London W1B 5AD | ||||
E-mail: | jmarkham@graphitecapital.com |
ACTIVE/110746680.7 |
With a copy (such copy not constituting Notice) to: | the Sellers’ Solicitors, for the attention of Michael Miranda, or by email to MMiranda@goodwinlaw.com | ||||
Dunedin: | |||||
For the attention of: | Ross Marshall | ||||
Address: | Dunedin LLP, Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2EN | ||||
E-mail: | ross.marshall@dunedin.com | ||||
With a copy (such copy not constituting Notice) to: | Graeme Murray, by email to graeme.murray@dunedin.com | ||||
Management Sellers: | |||||
For the attention of: | the relevant Management Seller | ||||
Address: | address of the relevant Management Seller set out in the table in Part 2 of Schedule 1 | ||||
E-mail: | e-mail address of the relevant Management Seller set out in the table in Part 2 of Schedule 1 | ||||
With a copy (such copy not constituting Notice) to: | the Sellers’ Solicitors, for the attention of Michael Miranda, or by email to MMiranda@goodwinlaw.com | ||||
Buyer: | |||||
For the attention of: | Brian Berube and Alex Tablin-Wolf | ||||
Address: | Axalta Coating Systems, 50 Applied Card Way, Suite 300, Glen Mills, PA 19342 | ||||
E-mail: | Brian.Berube@axalta.com and alex.tablin-wolf@axalta.com | ||||
With a copy (such copy not constituting Notice) to: | Buyer’s Solicitors, for the attention of Spencer Klein and Stuart Alford or by email to SpencerKlein@mofo.com and Salford@mofo.com | ||||
Guarantor: | |||||
For the attention of: | Brian Berube and Alex Tablin-Wolf | ||||
Address: | Axalta Coating Systems, 50 Applied Card Way, Suite 300, Glen Mills, PA 19342 |
ACTIVE/110746680.7 |
E-mail: | Brian.Berube@axalta.com and alex.tablin-wolf@axalta.com | ||||
With a copy (such copy not constituting Notice) to: | Buyer’s Solicitors, for the attention of Spencer Klein and Stuart Alford or by email to SpencerKlein@mofo.com and Salford@mofo.com |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
ACTIVE/110746680.7 |
EXECUTED as a DEED by …James Markham………. for and on behalf of GRAPHITE CAPITAL PARTNERS VII ‘A’ acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ……/s/ James Markham………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by …James Markham………. for and on behalf of GRAPHITE CAPITAL PARTNERS VII ‘B’ acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ……/s/ James Markham………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by …James Markham….for and on behalf of GRAPHITE CAPITAL PARTNERS VII ‘C’ acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ……/s/ James Markham………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by …James Markham………. for and on behalf of GRAPHITE CAPITAL PARTNERS VII ‘D’ acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ……/s/ James Markham………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by …James Markham………. for and on behalf of GRAPHITE CAPITAL PARTNERS VII ‘E’ LP acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ……/s/ James Markham………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by …James Markham………. for and on behalf of GRAPHITE CAPITAL PARTNERS VII ‘F’ LP acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ……/s/ James Markham……….... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by …James Markham………. for and on behalf of GRAPHITE CAPITAL PARTNERS VII TOP UP FUND acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ……/s/ James Markham………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by …James Markham………. for and on behalf of GRAPHITE CAPITAL PARTNERS VII TOP UP FUND PLUS acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ) ……/s/ James Markham………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by …James Markham………. for and on behalf of GRAPHITE CAPITAL FOUNDER PARTNER VII acting by its general partner GRAPHITE CAPITAL GENERAL PARTNER VII LLP | ) ) ) ) ……/s/ James Markham………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by ……Ross Marshall……. for and on behalf of DUNEDIN BUYOUT FUND II L.P. | ) ) ) ) ……/s/ Ross Marshall…………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by GUY WILLIAMS | ) ) ) ………/s/ Guy Williams……... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by MICHAEL COOMBES | ) ) ) ……/s/ Michael Coombes…... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by MICHAEL PENTECOST | ) ) ) …/s/ Michael Pentecost………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by WILLIAM JONES | ) ) ) ……/s/ William Jones…………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by WADE BOWMAN | ) ) ) ……/s/ Wade Bowman………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by SIMON ALDERSLEY | ) ) ) ………/s/ Simon Aldersley……... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by BRANDON MOSS | ) ) ) ……/s/ Brandon Moss………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by ALLISON COCHRANE | ) ) ) ……/s/ Allison Cochrane……... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by AXALTA COATING SYSTEMS UK HOLDING LIMITED | ) ) …/s/ James Ian Blenkinsopp... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by AXALTA COATING SYSTEMS LTD. | ) ) ……/s/ Jeremy Rohen………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
Dated 6 July 2021 | ||
THE MINORITY SELLERS AXALTA COATING SYSTEMS UK HOLDING LIMITED and AXALTA COATING SYSTEMS LTD. MINORITY SALE AND PURCHASE AGREEMENT relating to U-POL HOLDINGS LIMITED |
Minority Sellers: | |||||
For the attention of: | the relevant Minority Seller | ||||
Address: | address of the relevant Minority Seller set out in the table in Schedule 1 | ||||
E-mail: | e-mail address of the relevant Minority Seller set out in the table in Schedule 1 | ||||
With a copy (such copy not constituting Notice) to: | the Sellers’ Solicitors, for the attention of Michael Miranda, or by email to MMiranda@goodwinlaw.com | ||||
Buyer: | |||||
For the attention of: | Brian Berube and Alex Tablin-Wolf | ||||
Address: | Axalta Coating Systems, 50 Applied Card Way, Suite 300, Glen Mills, PA 19342 | ||||
E-mail: | Brian.Berube@axalta.com and alex.tablin-wolf@axalta.com | ||||
With a copy (such copy not constituting Notice) to: | Buyer’s Solicitors, for the attention of Spencer Klein and Stuart Alford or by email to SpencerKlein@mofo.com and Salford@mofo.com | ||||
Guarantor: | |||||
For the attention of: | Brian Berube and Alex Tablin-Wolf | ||||
Address: | Axalta Coating Systems, 50 Applied Card Way, Suite 300, Glen Mills, PA 19342 | ||||
E-mail: | Brian.Berube@axalta.com and alex.tablin-wolf@axalta.com | ||||
With a copy (such copy not constituting Notice) to: | Buyer’s Solicitors, for the attention of Spencer Klein and Stuart Alford or by email to SpencerKlein@mofo.com and Salford@mofo.com |
EXECUTED as a DEED by ANDREW AYRES | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by NEIL HYETT | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by NICHOLAS LUCY | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by PHILIP MAY | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by THOMAS METZ | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by JEAN-CHARLES JULIEN | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by WILLIAM ECCLES | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by CHARLES MATTHEWS | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by CRAIG SUTHERLAND | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by ANDREY RUNOVICH | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by TOM HEIGL | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by ANNA BURNS | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by PETER HUNT | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by JASON HOPKINS | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by MALCOLM MILLER | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by STEVE COOPER | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by WILLIAM SMALL | ) ) ) ……/s/ Michael Coombes……... Attorney | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by AXALTA COATING SYSTEMS UK HOLDING LIMITED | ) ) …/s/ James Ian Blenkinsopp…... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
EXECUTED as a DEED by AXALTA COATING SYSTEMS LTD. | ) ) ……/s/ Jeremy Rohen………... | ||||||||||
In the presence of: | |||||||||||
Signature of witness | ……………………………………... | ||||||||||
Name of witness | ……………………………………... | ||||||||||
Address of witness | ……………………………………... | ||||||||||
……………………………………... | |||||||||||
……………………………………... | |||||||||||
Occupation of witness | ……………………………………... |
By: | /s/ Robert W. Bryant | ||||
Name: | Robert W. Bryant | ||||
Title: | Chief Executive Officer and President |
By: | /s/ Sean M. Lannon | ||||
Name: | Sean M. Lannon | ||||
Title: | Senior Vice President and Chief Financial Officer |
By: | /s/ Robert W. Bryant | ||||
Name: | Robert W. Bryant | ||||
Title: | Chief Executive Officer and President |
By: | /s/ Sean M. Lannon | ||||
Name: | Sean M. Lannon | ||||
Title: | Senior Vice President and Chief Financial Officer |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Statement [Abstract] | ||||
Net sales | $ 1,088.6 | $ 1,026.9 | $ 3,279.0 | $ 2,663.1 |
Cost of goods sold | 745.3 | 634.1 | 2,182.6 | 1,780.1 |
Selling, general and administrative expenses | 181.0 | 166.5 | 544.3 | 516.1 |
Other operating (benefits) charges | (7.6) | 42.6 | 49.5 | 98.9 |
Research and development expenses | 15.4 | 13.4 | 46.8 | 41.2 |
Amortization of acquired intangibles | 29.8 | 28.6 | 88.1 | 84.5 |
Income from operations | 124.7 | 141.7 | 367.7 | 142.3 |
Interest expense, net | 33.8 | 39.8 | 100.7 | 112.4 |
Other (income) expense, net | (2.4) | 2.3 | (10.9) | 0.9 |
Income before income taxes | 93.3 | 99.6 | 277.9 | 29.0 |
Provision (benefit) for income taxes | 24.4 | 17.1 | 66.9 | (22.7) |
Net income | 68.9 | 82.5 | 211.0 | 51.7 |
Less: Net (loss) income attributable to noncontrolling interests | (0.2) | 0.0 | 0.3 | (0.2) |
Net income attributable to controlling interests | $ 69.1 | $ 82.5 | $ 210.7 | $ 51.9 |
Basic net income per share (in dollars per share) | $ 0.30 | $ 0.35 | $ 0.91 | $ 0.22 |
Diluted net income per share (in dollars per share) | $ 0.30 | $ 0.35 | $ 0.90 | $ 0.22 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common shares authorized (in shares) | 1,000.0 | 1,000.0 |
Common shares issued (in shares) | 251.7 | 250.9 |
Treasury shares, at cost (in shares) | 23.4 | 16.1 |
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||||||
Loss on derivatives, tax (benefit) expense | $ 1.1 | $ 1.0 | $ 1.3 | $ 1.0 | $ (0.4) | $ (6.0) |
Long-term employee benefit plans, net of tax expense (benefit) | 0.4 | 0.3 | 0.5 | 0.0 | (0.2) | 0.2 |
Foreign currency translation, tax expense | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Basis of Presentation and Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 and shareholders' equity 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, 2021, the results of operations, comprehensive income (loss) and changes in shareholders' equity for the three and nine months ended September 30, 2021 and 2020, and 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 financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. 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, 2021 are not necessarily indicative of the results to be expected for a full year. Summary of Significant Accounting Policies Recently Adopted Accounting Guidance In March 2020, we adopted ASU 2020-04, "Reference Rate Reform" which provides optional expedients exercisable through December 31, 2022 to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which clarified the scope and application of the original guidance. As of September 30, 2021, the expedients provided in this standard do not impact the Company. We will continue to monitor for potential impacts on our financial statements. In December 2020, we adopted ASU 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and updating provisions related to accounting for franchise (or similar) tax partially based on income and interim recognition of enactment of tax law changes. The adoption of this standard did not have a material impact on our financial statements. Risks and Uncertainties In March 2020, the World Health Organization characterized the coronavirus ("COVID-19") a pandemic, and the COVID-19 outbreak was declared a national emergency in the United States. The rapid spread of the pandemic and the continuously evolving responses to combat it have had a negative impact on the global economy. The Company's results of operations, financial condition and cash flows were significantly impacted during 2020 as a result of the pandemic and we continue to see impacts to our business given the continued significant presence, and actual or potential spread, of the virus globally, as well as preventative measures enacted in certain regions of the world. We are currently unable to fully determine the future impact of COVID-19 on our business, though we believe the pandemic will continue to have a negative effect on our business during 2021, and potentially longer. We are monitoring the progression of the pandemic and its ongoing and potential effect on our financial position, results of operations, and cash flows, which effects could be materially adverse in a particular quarterly reporting period as well as on an annual basis.
|
Revenue |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUEConsideration for products in which control has transferred to our customers that is conditional on something other than the passage of time is recorded as a contract asset within prepaid expenses and other current assets on the balance sheet. The contract asset balances at September 30, 2021 and December 31, 2020 were $39.6 million and $37.2 million, respectively. We provide certain customers with incremental up-front consideration, subject to clawback provisions, including Business Incentive Plan assets ("BIPs"), which is capitalized as a component of other assets and amortized over the estimated life of the contractual arrangement as a reduction of net sales. At September 30, 2021 and December 31, 2020, the total carrying value of BIPs were $155.8 million and $165.4 million, respectively, and are presented within other assets in the condensed consolidated balance sheets. For the three and nine months ended September 30, 2021 and 2020, $17.1 million, $46.1 million, $16.6 million and $49.9 million, respectively, was amortized and reflected as reductions of net sales in the condensed consolidated statements of operations. The total carrying value of BIPs exclude other upfront incentives made in conjunction with long-term customer commitments of $77.0 million and $79.8 million at September 30, 2021 and December 31, 2020, respectively, which we expect to be repaid in future periods. See Note 17 for disaggregated net sales by end-market.
|
Acquisitions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS The pro-forma impacts on our results of operations, including the pro-forma effect of events that are directly attributable to the following acquisitions, were not significant. Acquisition of U-POL Holdings Limited On September 15, 2021, we completed the acquisition of U-POL Holdings Limited (“U-POL”) for an aggregate purchase price of $619.8 million. The acquisition of U-POL, a leading supplier of paint, protective coatings and accessories primarily for the automotive aftermarket, strengthens Axalta’s global refinish leadership position and supports its broader growth strategy. The results of the business are reported within our Performance Coatings segment. The U-POL 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, 2021, we have not finalized the purchase accounting related to the U-POL acquisition and these amounts represent preliminary values. The allocation of the purchase price may be modified up to one year from the closing date of the acquisition as more information is obtained about the fair value of assets acquired and liabilities assumed. The purchase price was allocated as follows:
Goodwill was recognized as the excess of the purchase price over the net identifiable assets recognized. The goodwill is primarily attributed to the assembled workforce and the anticipated future economic benefits and is allocated to our refinish reporting unit. The goodwill recognized at September 30, 2021 is not deductible for income tax purposes. We incurred and expensed acquisition-related transaction costs for the U-POL acquisition of $8.8 million, included within other operating (benefits) charges on the condensed consolidated statements of operations for the three and nine months ended September 30, 2021. The fair value associated with definite-lived intangible assets was $273.0 million, comprised of $38.0 million in developed technology, $35.0 million in trademarks and $200.0 million in customer relationships. The definite-lived intangible assets will be amortized over an average term of 16.9 years. Other Acquisitions During April 2021, we acquired a producer of wire enamels used in a range of consumer electronics, electric vehicle and industrial applications, based in China. The acquisition was accounted for as a business combination within our industrial end-market and Performance Coatings segment. The overall impacts to our condensed consolidated financial statements were not considered material as of and for the three and nine months ended September 30, 2021. As of September 30, 2021, we have not yet finalized the purchase accounting related to the acquisition and the amounts recorded represent preliminary values. We expect to finalize our purchase accounting during the measurement period which will be no later than one year following the acquisition date.
|
Goodwill and Identifiable Intangible Assets |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2020 to September 30, 2021 by reportable segment:
Identifiable Intangible Assets The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2021 and each of the succeeding five years is:
|
Restructuring |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | RESTRUCTURING In accordance with the applicable guidance for ASC 712, Nonretirement Postemployment Benefits, we accounted for contractual termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated. During the three and nine months ended September 30, 2021 and 2020, we incurred costs for termination benefits of $9.5 million, $36.5 million, $35.2 million and $67.4 million, respectively. Pretax charges during the nine months ended September 30, 2021 primarily relate to additional employee severance charges within Europe that were not included in the previously announced global restructuring made in July 2020 as the required works council consultations and other local legal requirements were completed during the quarter. The majority of our termination benefits are recorded within other operating (benefits) charges in the condensed consolidated statements of operations. The remaining payments associated with these actions are expected to be substantially completed within 24 months. The following table summarizes the activity related to termination benefit reserves and expenses from December 31, 2020 to September 30, 2021:
During September 2021, we completed the sale of our manufacturing facility in Mechelen, Belgium, which stopped operations during 2020 as a result of actions taken to reduce operational costs via a manufacturing footprint rationalization announced in 2018. During the three and nine months ended September 30, 2021, the sale resulted in a gain of $8.9 million, of which $1.0 million is included in cost of goods sold and $7.9 million is included in other operating (benefits) charges in the condensed consolidated statements of operations.
|
Commitments and Contingencies |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees We guarantee certain of our customers’ obligations to third parties, whereby any default by our customers on their obligations could force us to make payments to the applicable creditors. At September 30, 2021 and December 31, 2020, we had outstanding bank guarantees of $6.2 million and $8.5 million, respectively. A portion of our bank guarantees expire between 2021 and 2036, while others do not have specified expiration dates. We monitor the customer obligations and bank guarantees to evaluate whether we have a liability at the balance sheet date. During the nine months ended September 30, 2020, we incurred a $1.0 million charge related to our outstanding bank guarantees. We did not have any liabilities related to our outstanding bank guarantees recorded at September 30, 2021 and December 31, 2020. Operational Matter In January 2021, we became aware of an operational matter affecting certain North America Mobility Coatings customer manufacturing sites. The matter involves the use and application of certain of our products in combination with and incorporated within third party products. The matter occurred over a discrete period during the fourth quarter of 2020. When we filed, and as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020, we estimated that it was reasonably possible that losses associated with the matter could have been up to $250 million. Subsequent to the filing of our Annual Report on Form 10-K and through the filing of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, there were further developments which led us to conclude that losses from this matter were probable and that certain losses would be covered under our insurance policies, subject to deductible and policy limits as defined in our policies. For the three and nine months ended September 30, 2021, we recorded a benefit of $18.7 million and expense of $3.9 million, respectively, within other operating (benefits) charges in the condensed consolidated statement of operations. The benefit in the three months ended September 30, 2021, primarily resulted from incremental anticipated insurance recoveries as a result of clarification of coverages under our policies. At September 30, 2021, we have recorded an estimated $48.7 million for insurance receivables within accounts and notes receivable, net in the condensed consolidated balance sheets. Liabilities of $48.0 million are recorded as other accrued liabilities in the condensed consolidated balance sheets at September 30, 2021. The recorded probable losses remain an estimate and actual costs arising from this matter could be materially lower or higher depending on the actual costs incurred to repair the impacted products as well as the availability of additional insurance coverage. Other We are subject to various pending lawsuits, legal proceedings and other claims in the ordinary course of business, including civil, regulatory and environmental matters. These matters may involve third-party indemnification obligations and/or insurance covering all or part of any potential damage incurred by us. All of these matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the proceedings and other claims at this time. The potential effects, if any, on our consolidated financial statements will be recorded in the period in which these matters are probable and estimable. Except as set forth in the "Operational Matter" section above, we believe that any sum we may be required to pay in connection with proceedings or claims in excess of the amounts recorded would likely not have a material adverse effect upon our results of operations, financial conditions or cash flows on a consolidated annual basis but could have a material adverse impact in a particular quarterly reporting period. We are involved in environmental remediation and ongoing compliance activities at several sites. The timing and duration of remediation and ongoing compliance activities are determined on a site by site basis depending on local regulations. The liabilities recorded represent our estimable future remediation costs and other anticipated environmental liabilities. We have not recorded liabilities at sites where a liability is probable, but that a range of loss is not reasonably estimable. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis but could have a material adverse impact in a particular quarterly reporting period.
|
Long-term Employee Benefits |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 costs for the three and nine months ended September 30, 2021 and 2020:
All non-service components of net periodic benefit cost are recorded in other income, net within the accompanying condensed consolidated statements of operations.
|
Stock-based Compensation |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | STOCK-BASED COMPENSATION During the three and nine months ended September 30, 2021 and 2020, we recognized expenses of $3.9 million, $11.7 million, $4.7 million and $15.9 million, respectively, in stock-based compensation, which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized tax benefits on stock-based compensation of $0.5 million, $1.2 million, $0.1 million, and $1.6 million for the three and nine months ended September 30, 2021 and 2020, respectively. 2021 Activity A summary of award activity by type for the nine months ended September 30, 2021 is presented below.
Cash received by the Company upon exercise of options for the nine months ended September 30, 2021 was $14.1 million. Tax shortfall expenses on these exercises were $0.5 million. At September 30, 2021, there was $0.2 million of unrecognized expense relating to unvested stock options that is expected to be amortized over the weighted average period of 0.5 years.
(1) As of September 30, 2021, there are no restricted stock awards outstanding and only restricted stock units remain. Tax shortfall expenses on the vesting of restricted stock awards and restricted stock units during the nine months ended September 30, 2021 was $0.1 million. At September 30, 2021, there was $16.2 million of unamortized expense relating to unvested restricted stock units that is expected to be amortized over a weighted average period of 1.6 years.
(1) As of September 30, 2021, there are no performance stock awards outstanding and only performance share units remain. Our performance stock awards and performance share units allow for participants to vest in more or less than the targeted number of shares granted. All of our performance awards are currently performing below the applicable targets. We currently expect a total of 0.4 million shares with a weighted average fair value per share of $29.74 to vest at the respective vesting dates for such awards. At September 30, 2021, there is $8.9 million of unamortized expense relating to unvested performance share units that is expected to be amortized over a weighted average period of 2.3 years. The forfeitures include performance stock awards and performance share units that vested below threshold payout.
|
Other (Income) Expense, Net |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (Income) Expense, Net | OTHER (INCOME) EXPENSE, NET
(1) Activity during the nine months ended September 30, 2021 includes income of $8.3 million related to a law change with respect to certain Brazilian indirect taxes.
|
Income Taxes |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES Our effective income tax rates for the nine months ended September 30, 2021 and 2020 are as follows:
The Company's effective tax rate for the periods reflected in the condensed consolidated financial statements are not directly comparable primarily due to the intra-entity asset transfers of certain of its intellectual property and the impacts of certain ongoing tax audits, which occurred during the nine months ended September 30, 2020 and are discussed below. On January 1, 2020, we completed an intra-entity transfer of certain intellectual property rights (the “IP”) to our Swiss subsidiary, where our EMEA regional headquarters is located. The transfer of the IP did not result in a taxable gain; however, it did result in step-up of the Swiss tax-deductible basis in the transferred assets and, accordingly, created a temporary difference between the book basis and the tax basis of the IP, which was transferred at fair value. We applied significant judgment when determining the fair value of the IP, which serves as the tax basis of the deferred tax asset. Consequently, this transaction resulted in the recognition of a deferred tax asset at the applicable Swiss tax rate, resulting in a one-time tax benefit of $50.5 million during the nine months ended September 30, 2020. The Company expects to be able to realize the deferred tax assets resulting from these intra-entity asset transfers. In connection with the income tax audit in Germany for the tax period 2010-2013, the Germany Tax Authority (“GTA”) indicated that it believed that certain positions taken on the 2010-2013 corporate income tax returns were not in compliance with German tax law. While the Company disagrees with the conclusions of the GTA based on the technical merits of our positions, after extensive discussions with the GTA and to avoid a potentially long and costly litigation process, in March 2020 the Company expressed a willingness to settle with the GTA on certain matters. The Company has reached a formal agreement with the GTA and is expecting to settle the final assessment in the coming months. The Company recorded a charge to income tax expense of $14.3 million during the nine months ended September 30, 2020. The Company is also currently under audit in Germany for tax years 2014-2017 and is prepared to vigorously defend itself on these matters. The Company anticipates that it is reasonably possible it will settle up to $24.0 million, exclusive of interest and penalties, of its current unrecognized tax benefits within the next 12 months due to the expected conclusion of ongoing tax audits.
|
Net Income Per Common Share |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Common Share | NET INCOME 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 stock awards, restricted stock units, performance stock awards and performance share units. A reconciliation of our basic and diluted net income per common share is as follows:
The number of anti-dilutive shares that have been excluded in the computation of diluted net income per share for the three and nine months ended September 30, 2021 and 2020 were 0.3 million, 0.8 million, 2.8 million and 2.9 million, respectively.
|
Accounts and Notes Receivable, Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts and Notes Receivable, Net | ACCOUNTS AND NOTES RECEIVABLE, NET Trade accounts receivable are stated at the amount we expect to collect. We maintain allowances for doubtful accounts for estimated losses by applying historical loss percentages, combined with reasonable and supportable forecasts of future losses, to respective aging categories. Management considers the following factors in developing its current estimate of expected credit losses: customer credit-worthiness, past transaction history with the customer, current economic industry trends, changes in market or regulatory matters, and changes in customer payment terms, including the ongoing impacts from COVID-19.
(1) Allowance for doubtful accounts was $24.5 million and $26.5 million at September 30, 2021 and December 31, 2020, respectively. (2) Includes $48.7 million at September 30, 2021 of insurance recoveries related to the operational matter as discussed further in Note 6. Bad debt expense of $0.4 million, $1.3 million, $2.4 million and $12.8 million was included within selling, general and administrative expenses for the three and nine months ended September 30, 2021 and 2020, respectively.
|
Inventories |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES
Inventory reserves were $16.6 million and $17.0 million at September 30, 2021 and December 31, 2020, respectively.
|
Property, Plant and Equipment, Net |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET
Depreciation expense amounted to $31.5 million, $96.3 million, $31.1 million and $104.4 million for the three and nine months ended September 30, 2021 and 2020, respectively. During May 2021, approximately $55.0 million of capitalized project costs related to an enterprise resource planning system previously classified as construction in progress were placed in service and depreciation was initiated. The majority of the costs will be depreciated over a 15-year useful life.
|
Borrowings |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | BORROWINGS Borrowings are summarized as follows:
Revolving Credit Facility During May 2021, we entered into the Tenth Amendment to the Credit Agreement (the "Tenth Amendment") to, among other things, increase commitments available pursuant to the Revolving Credit Facility from $400.0 million to $550.0 million and extend the maturity of the Revolving Credit Facility from 2024 to 2026, provided that such date will be accelerated in certain circumstances as set forth in the Tenth Amendment. As a result, we recorded $1.4 million of incremental deferred financing costs. At September 30, 2021 and December 31, 2020, letters of credit issued under the Revolving Credit Facility totaled $34.0 million which reduced the availability under the Revolving Credit Facility. Availability under the Revolving Credit Facility was $516.0 million and $366.0 million at September 30, 2021 and December 31, 2020, respectively. Future repayments Below is a schedule of required future repayments of all borrowings outstanding at September 30, 2021.
|
Financial Instruments, Hedging Activities and Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments, Hedging Activities and Fair Value Measurements | FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS Fair value of financial instruments Equity securities with readily determinable fair values - Balances of equity securities are recorded within other assets, with any changes in fair value recorded within other income, net. The fair values of equity securities are based upon quoted market prices, which are considered Level 1 inputs. Long-term borrowings - The estimated fair values of these borrowings are based on recent trades, as reported by a third-party pricing service. Due to the infrequency of trades, these inputs are considered to be Level 2 inputs. Derivative instruments - The Company’s interest rate caps, interest rate swaps, cross-currency swaps, and foreign currency forward contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are included in the Level 2 hierarchy. Fair value of contingent consideration The fair value of contingent consideration associated with an acquisition completed in the current year is valued at each balance sheet date, until amounts become payable, with adjustments recorded within other operating (benefits) charges in the condensed consolidated statements of operations. During the nine months ended September 30, 2021, in conjunction with the acquisition in China described in Note 3, we recorded fair value of contingent consideration of $7.3 million, which remained unchanged as of September 30, 2021. The contingent consideration was valued using a probability-weighted expected payment method. The analysis considered the timing of expected future cash flows and the probability of whether key elements of the contingent event are completed. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy. The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at September 30, 2021 and December 31, 2020.
(1) Cash flow hedge (2) Net investment hedge The table below presents a roll forward of activity for the Level 3 liabilities for the nine months ended September 30, 2021.
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. The following table presents the fair values of derivative instruments that qualify and have been designated as cash flow and net investment hedges included in accumulated other comprehensive loss ("AOCI"):
Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The following tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2021 and 2020 for these cash flow and net investment hedges.
Over the next 12 months, we expect losses of $30.1 million pertaining to cash flow hedges to be reclassified from AOCI into earnings, related to our interest rate caps, interest rate swaps, and foreign currency forward contracts. Derivative Instruments Not Designated as Cash Flow Hedges We periodically enter into foreign currency forward and option 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, net in the condensed consolidated statements of operations. During July 2021, we entered into two foreign currency forward contracts with a total notional value of £259.1 million to hedge the variability in exchange rates between the execution date of the agreement to purchase U-POL and the closing of the transaction. The contracts were settled in September 2021, and we realized a loss of $0.6 million within Other (income) expense, net on the condensed consolidated statement of operations. 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:
|
Segments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | SEGMENTSThe 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 Mobility Coatings. Previously named Transportation Coatings, our Mobility Coatings segment was renamed earlier in 2021 with no changes to the underlying business or segment structure. 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 Mobility 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. Adjusted EBIT is the primary measure to evaluate financial performance of the operating segments and allocate resources. Asset information is not reviewed or included with our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. The following table presents relevant information of our reportable segments.
(1)The Company has no intercompany sales between segments. (2)Depreciation and amortization expenses relating to assets used within the operations of a specifically identifiable segment are recorded to the appropriate segment, while depreciation and amortization expenses relating to assets shared in our integrated supply chain are allocated to the appropriate segments on a consistent basis reflecting their use. The following table reconciles our segment operating performance to income before income taxes for the periods presented:
|
Accumulated Other Comprehensive Loss |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS
The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2021 was $32.3 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at September 30, 2021 was $5.4 million.
Included within the reclassification from AOCI to Net Income for the three and nine months ended September 30, 2020 were curtailment and settlement impacts of $1.3 million and $3.1 million, respectively. The cumulative income tax benefit related to the adjustments for pension benefits at September 30, 2020 was $27.0 million. The cumulative income tax benefit related to the adjustments for unrealized loss on derivatives at September 30, 2020 was $9.7 million.
|
Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In March 2020, we adopted ASU 2020-04, "Reference Rate Reform" which provides optional expedients exercisable through December 31, 2022 to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which clarified the scope and application of the original guidance. As of September 30, 2021, the expedients provided in this standard do not impact the Company. We will continue to monitor for potential impacts on our financial statements. In December 2020, we adopted ASU 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and updating provisions related to accounting for franchise (or similar) tax partially based on income and interim recognition of enactment of tax law changes. The adoption of this standard did not have a material impact on our financial statements.
|
Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Acquired and Liabilities Assumed | The purchase price was allocated as follows:
|
Goodwill and Identifiable Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2020 to September 30, 2021 by reportable segment:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2021 and each of the succeeding five years is:
|
Restructuring (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following table summarizes the activity related to termination benefit reserves and expenses from December 31, 2020 to September 30, 2021:
|
Long-term Employee Benefits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic benefit costs for the three and nine months ended September 30, 2021 and 2020:
|
Stock-based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Options Roll Forward | A summary of award activity by type for the nine months ended September 30, 2021 is presented below.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward |
(1) As of September 30, 2021, there are no restricted stock awards outstanding and only restricted stock units remain.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Performance Stock Roll Forward |
(1) As of September 30, 2021, there are no performance stock awards outstanding and only performance share units remain.
|
Other (Income) Expense, Net (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Income, Net |
(1) Activity during the nine months ended September 30, 2021 includes income of $8.3 million related to a law change with respect to certain Brazilian indirect taxes.
|
Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rates for the nine months ended September 30, 2021 and 2020 are as follows:
|
Net Income Per Common Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Accounts and Notes Receivable, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable |
(1) Allowance for doubtful accounts was $24.5 million and $26.5 million at September 30, 2021 and December 31, 2020, respectively. (2) Includes $48.7 million at September 30, 2021 of insurance recoveries related to the operational matter as discussed further in Note 6.
|
Inventories (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current |
|
Property, Plant and Equipment, Net (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
|
Borrowings (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Borrowings are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at September 30, 2021.
|
Financial Instruments, Hedging Activities and Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at September 30, 2021 and December 31, 2020.
(1) Cash flow hedge (2) Net investment hedge
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Liability Activity | The table below presents a roll forward of activity for the Level 3 liabilities for the nine months ended September 30, 2021.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair values of derivative instruments that qualify and have been designated as cash flow and net investment hedges included in accumulated other comprehensive loss ("AOCI"):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2021 and 2020 for these cash flow and net investment hedges.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | 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:
|
Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table presents relevant information of our reportable segments.
(1)The Company has no intercompany sales between segments. (2)Depreciation and amortization expenses relating to assets used within the operations of a specifically identifiable segment are recorded to the appropriate segment, while depreciation and amortization expenses relating to assets shared in our integrated supply chain are allocated to the appropriate segments on a consistent basis reflecting their use.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles our segment operating performance to income before income taxes for the periods presented:
|
Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss |
|
Revenue - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Revenue from Contract with Customer [Abstract] | |||||
Contract with customer, asset | $ 39.6 | $ 39.6 | $ 37.2 | ||
Capitalized contract cost, net | 155.8 | 155.8 | 165.4 | ||
Capitalized contract cost, amortization | 17.1 | $ 16.6 | 46.1 | $ 49.9 | |
Upfront incentive payments | $ 77.0 | $ 77.0 | $ 79.8 |
Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Sep. 15, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill from acquisition | $ 1,619.8 | $ 1,294.9 | |
U-POL | |||
Business Acquisition [Line Items] | |||
Cash | $ 23.7 | ||
Accounts and notes receivable, net | 22.5 | ||
Inventories | 23.3 | ||
Prepaid expenses and other current assets, net | 3.2 | ||
Property, plant and equipment, net | 16.5 | ||
Identifiable intangible assets | 273.0 | ||
Other assets | 2.0 | ||
Accounts payable | (20.9) | ||
Other accrued liabilities | (3.9) | ||
Other liabilities | (0.9) | ||
Deferred income taxes | (68.4) | ||
Net assets before goodwill from acquisition | 270.1 | ||
Goodwill from acquisition | 349.7 | ||
Net assets acquired | $ 619.8 |
Goodwill and Identifiable Intangible Assets - Schedule of Goodwill (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,294.9 |
Goodwill from acquisitions | 372.8 |
Foreign currency translation | (47.9) |
Goodwill, ending balance | 1,619.8 |
Performance Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,211.3 |
Goodwill from acquisitions | 372.8 |
Foreign currency translation | (45.2) |
Goodwill, ending balance | 1,538.9 |
Mobility Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 83.6 |
Goodwill from acquisitions | 0.0 |
Foreign currency translation | (2.7) |
Goodwill, ending balance | $ 80.9 |
Goodwill and Identifiable Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 33.6 |
2022 | 132.1 |
2023 | 91.5 |
2024 | 86.7 |
2025 | 86.0 |
2026 | $ 85.4 |
Restructuring - Additional Information (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 9.5 | $ 35.2 | $ 36.5 | $ 67.4 | |
Payment term (in months) | 24 months | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 8.9 | ||||
Cost of goods sold | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Gain (Loss) on Disposition of Property Plant Equipment | 1.0 | ||||
Other Operating (Benefits) Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 7.9 |
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 55.8 | |||
Expenses, net of changes to estimates | $ 9.5 | $ 35.2 | 36.5 | $ 67.4 |
Payments made | (27.3) | |||
Foreign currency translation | (2.2) | |||
Ending balance | $ 62.8 | $ 62.8 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Commitments and Contingencies Disclosure [Abstract] | |||||
Maximum exposure | $ 6.2 | $ 6.2 | $ 8.5 | ||
Outstanding bank guarantees incurred | $ 1.0 | ||||
Current carrying value | 0.0 | 0.0 | 0.0 | ||
Unresolved matter, potential loss | $ 250.0 | ||||
Recorded charge (benefit) expense in probable loss | (18.7) | $ 0.0 | 3.9 | $ 0.0 | |
Insurance receivable | 48.7 | 48.7 | |||
Loss recorded as a liability | $ 48.0 | $ 48.0 |
Long-term Employee Benefits - Schedule of Net Benefit Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 2.0 | $ 1.8 | $ 5.8 | $ 5.5 |
Interest cost | 1.9 | 2.6 | 5.8 | 7.2 |
Expected return on plan assets | (3.4) | (3.2) | (10.3) | (9.5) |
Amortization of actuarial loss, net | 1.3 | 0.7 | 3.8 | 2.5 |
Amortization of prior service cost, net | (0.1) | 0.0 | (0.1) | 0.0 |
Plan curtailments | 0.0 | (0.7) | 0.0 | (2.5) |
Net periodic benefit cost | $ 1.7 | $ 1.2 | $ 5.0 | $ 3.2 |
Stock-based Compensation - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock and Restricted Stock Units shares in Millions |
9 Months Ended |
---|---|
Sep. 30, 2021
$ / shares
shares
| |
Awards/Units (millions) | |
Beginning Balance (in shares) | shares | 1.0 |
Granted (in shares) | shares | 0.6 |
Vested (in shares) | shares | (0.4) |
Forfeited (in shares) | shares | (0.1) |
Ending Balance (in shares) | shares | 1.1 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 28.84 |
Granted (in usd per share) | $ / shares | 28.85 |
Vested (in usd per share) | $ / shares | 29.04 |
Forfeited (in usd per share) | $ / shares | 28.92 |
Ending Balance (in usd per share) | $ / shares | $ 28.75 |
Stock-based Compensation - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares shares in Millions |
9 Months Ended |
---|---|
Sep. 30, 2021
$ / shares
shares
| |
Awards/Units (millions) | |
Beginning Balance (in shares) | shares | 0.5 |
Granted (in shares) | shares | 0.4 |
Vested (in shares) | shares | 0.0 |
Forfeited (in shares) | shares | (0.2) |
Ending Balance (in shares) | shares | 0.7 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 31.07 |
Granted (in usd per share) | $ / shares | 29.53 |
Vested (in usd per share) | $ / shares | 0 |
Forfeited (in usd per share) | $ / shares | 31.84 |
Ending Balance (in usd per share) | $ / shares | $ 30.11 |
Other (Income) Expense, Net - Schedule of Other Non-operating Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Other Income and Expenses [Abstract] | ||||
Foreign exchange (gain) losses, net | $ (0.7) | $ 5.5 | $ 2.9 | $ 7.5 |
Debt extinguishment and refinancing related costs | 0.0 | 0.0 | 0.2 | 2.4 |
Other miscellaneous income, net | (1.7) | (3.2) | (14.0) | (9.0) |
Total | (2.4) | 2.3 | (10.9) | 0.9 |
Brazil indirect tax | $ 0.0 | $ 0.0 | $ 8.3 | $ 0.0 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Effective Tax Rate | 24.10% | (78.30%) | ||
Tax Benefit on step-up value | $ 50.5 | |||
income tax settlement [Line Items] | ||||
Income Tax settlement | $ 24.4 | $ 17.1 | $ 66.9 | (22.7) |
Settlement with Taxing Authority | ||||
income tax settlement [Line Items] | ||||
Income Tax settlement | $ 14.3 | |||
Amount reasonable possible to settle of unrecognized tax benefits | $ 24.0 | $ 24.0 |
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Earnings Per Share [Abstract] | ||||
Net income to common shareholders | $ 69.1 | $ 82.5 | $ 210.7 | $ 51.9 |
Basic weighted average shares outstanding (in shares) | 229.9 | 235.3 | 232.1 | 235.1 |
Diluted weighted average shares outstanding (in shares) | 230.7 | 236.0 | 233.0 | 235.9 |
Net income per common share: | ||||
Basic net income per share (in dollars per share) | $ 0.30 | $ 0.35 | $ 0.91 | $ 0.22 |
Diluted net income per share (in dollars per share) | $ 0.30 | $ 0.35 | $ 0.90 | $ 0.22 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.3 | 2.8 | 0.8 | 2.9 |
Accounts and Notes Receivable, Net - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable - trade, net | $ 859.2 | $ 738.3 |
Notes receivable | 23.2 | 30.3 |
Other | 167.7 | 101.2 |
Total | 1,050.1 | 869.8 |
Allowance for doubtful accounts | 24.5 | $ 26.5 |
Insurance receivable | $ 48.7 |
Accounts and Notes Receivable, Net - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Receivables [Abstract] | ||||
Bad debt expense net of recoveries | $ 0.4 | $ 2.4 | $ 1.3 | $ 12.8 |
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 364.0 | $ 319.3 |
Semi-finished products | 112.5 | 92.2 |
Raw materials | 178.4 | 127.2 |
Stores and supplies | 23.0 | 21.2 |
Total Inventories | $ 677.9 | $ 559.9 |
Inventories - Additional Information (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Inventory reserves | $ 16.6 | $ 17.0 |
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 2,293.8 | $ 2,317.9 |
Accumulated depreciation | (1,100.3) | (1,123.4) |
Property, plant, and equipment, net | $ 1,193.5 | $ 1,194.5 |
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
May 31, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 31.5 | $ 31.1 | $ 96.3 | $ 104.4 | |
Capitalized cost | $ 55.0 | ||||
Software and Software Development Costs | |||||
Property, Plant and Equipment [Line Items] | |||||
Enterprise resource planning system | 15 years |
Borrowings - Schedule of Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Short-term and other borrowings | $ 106.4 | $ 118.0 |
Unamortized original issue discount | (5.1) | (6.3) |
Unamortized deferred financing costs | (29.0) | (34.3) |
Total borrowings, net | 3,842.5 | 3,892.7 |
Short-term borrowings | 19.0 | 29.9 |
Current portion of long-term borrowings | 24.3 | 24.3 |
Long-term debt | 3,799.2 | 3,838.5 |
2024 Dollar Term Loans | ||
Debt Instrument [Line Items] | ||
Term loan | 2,045.0 | 2,063.2 |
2025 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 525.2 | 552.1 |
2027 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 500.0 | 500.0 |
2029 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 700.0 | $ 700.0 |
Borrowings - Additional Information (Details) - Revolving Credit Facility - USD ($) $ in Millions |
Sep. 30, 2021 |
May 31, 2021 |
Apr. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Increase in revolving credit facility | $ 550.0 | $ 400.0 | ||
Incremental deferred financing costs | $ 1.4 | |||
Letters of credit outstanding, amount | $ 34.0 | $ 34.0 | ||
Line of credit facility, remaining borrowing capacity | $ 516.0 | $ 366.0 |
Borrowings - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Disclosure [Abstract] | ||
Remainder of 2021 | $ 21.6 | |
2022 | 54.4 | |
2023 | 27.3 | |
2024 | 1,993.3 | |
2025 | 528.5 | |
Thereafter | 1,251.5 | |
Total borrowings | 3,876.6 | |
Unamortized original issue discount | (5.1) | $ (6.3) |
Unamortized deferred financing costs | (29.0) | (34.3) |
Total borrowings, net | $ 3,842.5 | $ 3,892.7 |
Financial Instruments, Hedging Activities and Fair Value Measurements - Additional Information (Details) £ in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2021
USD ($)
|
Jul. 31, 2021
GBP (£)
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of contingent consideration | $ 7.3 | $ 7.3 | |
Cash flow hedge loss to be reclassified within twelve months | 30.1 | ||
Foreign currency forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount | £ | £ 259.1 | ||
Loss on foreign currency transaction | $ 0.6 | $ 0.6 |
Financial Instruments, Hedging Activities and Fair Value Measurements - Schedule of Liability Activity (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 0.0 |
Business acquisition | 7.3 |
Ending balance | $ 7.3 |
Financial Instruments, Hedging Activities and Fair Value Measurements - Accumulated Other Comprehensive (Loss) Income (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | $ 38.6 | $ 98.1 |
Cash flow hedging | Interest rate caps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 0.7 | 2.6 |
Cash flow hedging | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 38.6 | 60.0 |
Cash flow hedging | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | 0.1 | 0.3 |
Net investment hedging | Cross-currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AOCI | $ (0.8) | $ 35.2 |
Segments - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021
Segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2021 |
|
Equity [Abstract] | |||
Cumulative income tax benefit on pension and postretirement benefit plans | $ 27.0 | $ 27.0 | $ 32.3 |
Cumulative income tax benefit on derivatives | 9.7 | 9.7 | $ 5.4 |
Curtailment gain | $ 1.3 | $ 3.1 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |
MM=3%.(S'ECCN$82#%^$WAWQG>:9A^YQB,.X!@E](D(H]F:GD'+M-@H@0:QDZ
MS,(H&&!P7V)/##R-C.>Q5T+69UNQ1G="@INLW+AS9?,AH)Z5*P=%@M%,]13!
MTQAIYWF2R!T<& ;Y '+*!B_M-3]L-MUFO-PF6=X #@P$4
M.!--Y3[JY6_8YC-F>[FNK/\?ED$V&PT@;ZS3BU:9(EA(%7[%;8M#3^$@WJ*0
MM@JICSLX\E&^%4Z<'!F]!,/29(T??*I>FX*3BHMRY0R]E:3G3JZ (()42\L&6EEI0VB97LM_4@C
MB$_^+MS XJ]%\:M3D3H&&9SF60$3HF4BXIWFQTB->:S2E5#>K*E8*HG4<84=
M92J41+R/?08+#RU"T'TK8! ="SDCRSB$"*6;F,LE%8 B9\,_T/2\*9JS%'B$
M)(:S]L8J41.=NGU*,M5^M
MR3]02P,$% @ 8X)94_90H#(R#0 'E< !@ !X;"]W;W)K
D!YHN43JK%S/E?R'1/&6XT0+>@8[
MH^B0"%=5%/0N["1)M-];9IN5M[:3C/OB!FV-OM^JU2Y(!;8'1]Z#@R(H95["
M4E@05:5SX4ABBFZ)J$C2.A_,7.O"@M55X;U14Q-*\UV8HT(C*K\I"FH/R15D
MO[UNQXY)L6B-5?4QF/R:R_[)'HY]. NX2'X0D!T#,I]W
M+^2S7#++YE.M.M .36S.\*7Z:$J.2_=2[JRF74YQ=K[6]'ZU/82P%DQ:8+*$
MU;>6-]1X&\(-VFEL2<>AX^+(>=5S9C_@O(1K)>W>P$J66#Z-CRF_(
.[I2KNB,JZU3'^=SYVW"(2_GR$?[?7[WZ_H3TW*>C=98S^ATM2CA:F
M0BJY$X*[/-=SMCN?T147VY4TK"3R&=$5(,K21[8UO3&J<=2CK)^,\CCI1N-A
MG(EH3B];:\#<:&/IG?'L*,]R;.9Y%JRB4).#JOA":/BHT"=O=]V9E
MK/_-BT:J*
XM(7LRK&''VH->=
MU_OG1I4I7M5N=.5ZX_HA$-T=,JRN=FA"K[GR#>U>SFBO!2 SX/]C C3X/T)S
M:7J]?5CYS&"F[)0_IJ!C?IC6?W%0WBV_UQCZSQ16T_W''A^EG5(@Q&J"I0"%
M1RW44?Z P@]2,^>/%L8F3