XML 51 R40.htm IDEA: XBRL DOCUMENT v3.20.2
Segments (Tables)
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment The following table presents relevant information of our reportable segments.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2020
 
2019
 
2020
 
2019
Net sales (1):
 
 
 
 
 
 
 
 
Refinish
 
$
261.9

 
$
447.3

 
$
629.7

 
$
852.8

Industrial
 
220.2

 
309.4

 
500.1

 
617.2

Total Net sales Performance Coatings
 
482.1

 
756.7

 
1,129.8

 
1,470.0

Light Vehicle
 
126.3

 
306.1

 
386.4

 
622.0

Commercial Vehicle
 
44.3

 
94.7

 
120.0

 
184.8

Total Net sales Transportation Coatings
 
170.6

 
400.8

 
506.4

 
806.8

Total Net sales
 
$
652.7

 
$
1,157.5

 
$
1,636.2

 
$
2,276.8

Equity in earnings in unconsolidated affiliates:
 
 
 
 
 
 
 
 
Performance Coatings
 
$
—

 
$
0.1

 
$
—

 
$
0.2

Transportation Coatings
 
(0.2
)
 
0.4

 
(0.1
)
 
—

Total
 
$
(0.2
)
 
$
0.5

 
$
(0.1
)
 
$
0.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2020
 
December 31, 2019
Investment in unconsolidated affiliates:
 
 
 
 
 
 
 
 
Performance Coatings
 
 
 
 
 
$
2.0

 
$
2.4

Transportation Coatings
 
 
 
 
 
12.6

 
12.7

Total
 
 
 
 
 
$
14.6

 
$
15.1


(1)
The Company has no intercompany sales between segments.
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
The following table reconciles our segment operating performance to (loss) income before income taxes for the periods presented:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2020
 
2019
 
2020
 
2019
Segment Adjusted EBIT (1):
 
 
 
 
 
 
 
 
Performance Coatings
 
$
1.5

 
$
127.6

 
$
80.9

 
$
206.2

Transportation Coatings
 
(39.3
)
 
40.4

 
(13.5
)
 
74.6

Total (2)
 
(37.8
)
 
168.0

 
67.4

 
280.8

Interest expense, net
 
36.1

 
41.0

 
72.6

 
82.3

Debt extinguishment and refinancing related costs (a)
 
—

 
0.2

 
2.4

 
0.2

Termination benefits and other employee related costs (b)
 
15.2

 
2.8

 
34.7

 
4.1

Strategic review and retention costs (c)
 
6.7

 
0.8

 
18.2

 
0.8

Offering and transactional costs (d)
 
0.1

 
0.2

 
0.2

 
0.8

Loss (gain) on divestiture and impairments (e)
 
2.7

 
(1.3
)
 
3.2

 
3.9

Pension special event (f)
 
(0.6
)
 
—

 
(1.8
)
 
—

Accelerated depreciation (g)
 
0.4

 
6.7

 
8.5

 
12.8

Indemnity income (h)
 
—

 
(0.2
)
 
—

 
(0.2
)
(Loss) income before income taxes
 
$
(98.4
)
 
$
117.8

 
$
(70.6
)
 
$
176.1

(1)
The primary measure of segment operating performance is Adjusted EBIT, which is defined as net income before interest, taxes and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Adjusted EBIT is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents Adjusted EBIT adjusted for the select items referred to above.
 
 
(2)
Does not represent Axalta’s Adjusted EBIT referenced elsewhere by the Company as there are additional adjustments that are not allocated to the segments.
 
 
(a)
Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.
 
 
(b)
Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs. Employee termination benefits are associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance.
 
 
(c)
Represents costs for legal, tax and other advisory fees pertaining to our review of strategic alternatives that was concluded in March 2020, as well as retention awards for certain employees which will be earned over a period of 18-24 months. These amounts are not considered indicative of our ongoing performance.
 
 
(d)
Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance.
 
 
(e)
Represents expenses and associated changes to estimates related to the sale of our interest in a joint venture business and other impairments, which are not considered indicative of our ongoing operating performance.
 
 
(f)
Represents certain defined benefit pension costs associated with special events, including pension curtailments, 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 the acquisition by Axalta of the DuPont Performance Coatings business, which we do not consider indicative of our ongoing operating performance.