100000000.00250.002588000000130000009500000false--12-31FY20180001616862YesfalseLarge Accelerated FilerAxalta Coating Systems LTD.falsefalseNoYesAXTA01.001.00100000000010000000002439000002467000002439000002467000000.040.060.040.06.30.20.50.05.25.15.4500.250.300.500.050.200.250.450.000.300.200.500.050.250.150.450.002350000018000009600000400000068400000230000000008000005000001100000000570000061000001400000P4YP3YP2YP1Y200000011100000 0001616862 2018-01-01 2018-12-31 0001616862 2019-02-19 0001616862 2018-06-30 0001616862 2017-01-01 2017-12-31 0001616862 2016-01-01 2016-12-31 0001616862 2017-12-31 0001616862 2018-12-31 0001616862 us-gaap:NoncontrollingInterestMember 2016-12-31 0001616862 us-gaap:CommonStockMember 2015-12-31 0001616862 us-gaap:TreasuryStockMember 2017-12-31 0001616862 us-gaap:RetainedEarningsMember 2017-01-01 2017-12-31 0001616862 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0001616862 us-gaap:TreasuryStockMember 2018-12-31 0001616862 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0001616862 us-gaap:RetainedEarningsMember 2018-01-01 0001616862 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-01-01 2016-12-31 0001616862 us-gaap:CommonStockMember 2017-12-31 0001616862 us-gaap:NoncontrollingInterestMember 2016-01-01 2016-12-31 0001616862 us-gaap:NoncontrollingInterestMember 2017-01-01 2017-12-31 0001616862 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-12-31 0001616862 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001616862 us-gaap:CommonStockMember 2016-01-01 2016-12-31 0001616862 us-gaap:NoncontrollingInterestMember 2015-12-31 0001616862 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001616862 us-gaap:TreasuryStockMember 2017-01-01 2017-12-31 0001616862 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0001616862 2015-12-31 0001616862 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001616862 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001616862 us-gaap:TreasuryStockMember 2016-12-31 0001616862 us-gaap:RetainedEarningsMember 2016-12-31 0001616862 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0001616862 us-gaap:RetainedEarningsMember 2016-01-01 2016-12-31 0001616862 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-12-31 0001616862 us-gaap:NoncontrollingInterestMember 2017-12-31 0001616862 us-gaap:CommonStockMember 2018-12-31 0001616862 us-gaap:AdditionalPaidInCapitalMember 2016-01-01 2016-12-31 0001616862 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 0001616862 us-gaap:TreasuryStockMember 2015-12-31 0001616862 2016-12-31 0001616862 us-gaap:TreasuryStockMember 2018-01-01 2018-12-31 0001616862 us-gaap:RetainedEarningsMember 2015-12-31 0001616862 us-gaap:CommonStockMember 2017-01-01 2017-12-31 0001616862 us-gaap:NoncontrollingInterestMember 2018-12-31 0001616862 us-gaap:RetainedEarningsMember 2018-12-31 0001616862 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-12-31 0001616862 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0001616862 us-gaap:CommonStockMember 2016-12-31 0001616862 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001616862 us-gaap:RetainedEarningsMember 2015-01-01 0001616862 us-gaap:NoncontrollingInterestMember 2018-01-01 0001616862 2018-01-01 0001616862 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001616862 2015-01-01 0001616862 us-gaap:RetainedEarningsMember 2017-12-31 0001616862 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001616862 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2017-12-31 0001616862 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2017-12-31 0001616862 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 0001616862 us-gaap:AccountingStandardsUpdate201707Member us-gaap:OtherExpenseMember 2017-01-01 2017-12-31 0001616862 srt:SubsidiariesMember 2018-12-31 0001616862 srt:MaximumMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember 2018-01-01 2018-12-31 0001616862 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-12-31 0001616862 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-12-31 0001616862 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-12-31 0001616862 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0001616862 srt:RestatementAdjustmentMember axta:IndustrialWoodAcquisitionMember 2017-06-01 0001616862 srt:ScenarioPreviouslyReportedMember axta:IndustrialWoodAcquisitionMember 2017-06-01 0001616862 axta:IndustrialWoodAcquisitionMember 2017-06-01 0001616862 axta:IndustrialWoodAcquisitionMember 2017-01-01 2017-12-31 0001616862 axta:IndustrialWoodAcquisitionMember axta:AcquisitionrelatedCostsNetofTaxMember 2017-01-01 2017-12-31 0001616862 axta:IndustrialWoodAcquisitionMember us-gaap:FairValueAdjustmentToInventoryMember 2017-01-01 2017-12-31 0001616862 axta:A2018AcquisitionsMember 2018-01-01 2018-12-31 0001616862 axta:IndustrialWoodAcquisitionMember 2017-06-01 2017-06-01 0001616862 srt:EuropeMember axta:A2018AcquisitionsMember 2018-01-01 2018-12-31 0001616862 axta:IndustrialWoodAcquisitionMember us-gaap:CustomerContractsMember 2017-06-01 2017-06-01 0001616862 axta:IndustrialWoodAcquisitionMember us-gaap:CustomerRelationshipsMember 2017-06-01 2017-06-01 0001616862 axta:IndustrialWoodAcquisitionMember us-gaap:TrademarksMember 2017-06-01 2017-06-01 0001616862 srt:NorthAmericaMember axta:A2018AcquisitionsMember 2018-01-01 2018-12-31 0001616862 axta:IndustrialWoodAcquisitionMember us-gaap:TechnologyBasedIntangibleAssetsMember 2017-06-01 2017-06-01 0001616862 srt:AsiaPacificMember axta:A2018AcquisitionsMember 2018-01-01 2018-12-31 0001616862 axta:IndustrialWoodAcquisitionMember us-gaap:AcquisitionRelatedCostsMember 2017-01-01 2017-12-31 0001616862 axta:IndustrialWoodAcquisitionMember axta:FairValueAdjustmenttoInventorynetoftaxMember 2017-01-01 2017-12-31 0001616862 axta:IndustrialWoodAcquisitionMember 2018-12-31 0001616862 axta:IndustrialWoodAcquisitionMember 2016-01-01 2016-12-31 0001616862 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-12-31 0001616862 us-gaap:TrademarksMember 2018-01-01 2018-12-31 0001616862 us-gaap:CustomerRelationshipsMember 2018-12-31 0001616862 us-gaap:TrademarksMember 2018-12-31 0001616862 us-gaap:OtherIntangibleAssetsMember 2018-12-31 0001616862 us-gaap:TrademarksMember 2018-12-31 0001616862 us-gaap:OtherIntangibleAssetsMember 2018-01-01 2018-12-31 0001616862 us-gaap:CustomerRelationshipsMember 2018-01-01 2018-12-31 0001616862 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-01-01 2018-12-31 0001616862 axta:TransportationCoatingsMember 2017-01-01 2017-12-31 0001616862 axta:PerformanceCoatingsMember 2017-12-31 0001616862 axta:TransportationCoatingsMember 2018-01-01 2018-12-31 0001616862 axta:PerformanceCoatingsMember 2017-01-01 2017-12-31 0001616862 axta:TransportationCoatingsMember 2017-12-31 0001616862 axta:PerformanceCoatingsMember 2018-01-01 2018-12-31 0001616862 axta:PerformanceCoatingsMember 2018-12-31 0001616862 axta:TransportationCoatingsMember 2018-12-31 0001616862 axta:TransportationCoatingsMember 2016-12-31 0001616862 axta:PerformanceCoatingsMember 2016-12-31 0001616862 us-gaap:TrademarksMember 2017-12-31 0001616862 us-gaap:CustomerRelationshipsMember 2017-01-01 2017-12-31 0001616862 us-gaap:TechnologyBasedIntangibleAssetsMember 2017-12-31 0001616862 us-gaap:CustomerRelationshipsMember 2017-12-31 0001616862 us-gaap:OtherIntangibleAssetsMember 2017-01-01 2017-12-31 0001616862 us-gaap:TrademarksMember 2017-12-31 0001616862 us-gaap:TrademarksMember 2017-01-01 2017-12-31 0001616862 us-gaap:OtherIntangibleAssetsMember 2017-12-31 0001616862 us-gaap:TechnologyBasedIntangibleAssetsMember 2017-01-01 2017-12-31 0001616862 axta:NewlyclassifiedfinitelivedintangibleassetsMember us-gaap:TrademarksMember 2018-01-01 2018-12-31 0001616862 us-gaap:InProcessResearchAndDevelopmentMember 2018-12-31 0001616862 us-gaap:InProcessResearchAndDevelopmentMember 2017-12-31 0001616862 axta:MechelenBelgiumMember 2018-12-31 0001616862 srt:MaximumMember axta:PlantClosureAxaltaWayRestructuringMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember axta:PlantClosureAxaltaWayRestructuringMember 2018-01-01 2018-12-31 0001616862 axta:PlantClosureAxaltaWayRestructuringMember 2018-07-01 2018-09-30 0001616862 us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 country:VE 2017-01-01 2017-12-31 0001616862 srt:EuropeMember 2018-12-31 0001616862 country:VE 2017-12-31 0001616862 us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 us-gaap:PensionPlansDefinedBenefitMember 2017-01-01 2017-12-31 0001616862 us-gaap:PensionPlansDefinedBenefitMember 2016-12-31 0001616862 us-gaap:PensionPlansDefinedBenefitMember 2016-01-01 2016-12-31 0001616862 axta:A2025EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 axta:A2024DollarSeniorNotesMember 2018-01-01 2018-12-31 0001616862 axta:PensionTrustLiabilityMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:USEquitySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:USandForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:USandForeignGovernmentDebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:CorporateDebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:ForeignEquitySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:ForeignEquitySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:USEquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:USEquitySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:USEquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:USandForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:RealEstateMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:USandForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:HedgeFundsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:FairValueInputsLevel12And3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:CashAndCashEquivalentsMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:ForeignEquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 axta:ForeignEquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel3Member 2018-01-01 2018-12-31 0001616862 axta:DebtandEquityMember us-gaap:FairValueInputsLevel3Member 2016-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:FairValueInputsLevel3Member 2018-01-01 2018-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel3Member 2017-01-01 2017-12-31 0001616862 us-gaap:FairValueInputsLevel3Member 2017-01-01 2017-12-31 0001616862 axta:DebtandEquityMember us-gaap:FairValueInputsLevel3Member 2017-01-01 2017-12-31 0001616862 axta:DebtandEquityMember us-gaap:FairValueInputsLevel3Member 2018-01-01 2018-12-31 0001616862 us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 axta:DebtandEquityMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel3Member 2018-01-01 2018-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel3Member 2017-01-01 2017-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel3Member 2016-12-31 0001616862 us-gaap:FairValueInputsLevel3Member 2016-12-31 0001616862 us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel3Member 2016-12-31 0001616862 axta:DebtandEquityMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:USandForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:USEquitySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:USandForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:ForeignEquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:USandForeignGovernmentDebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:ForeignEquitySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:USEquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:HedgeFundsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:RealEstateMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:FairValueInputsLevel12And3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:RealEstateMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:CashAndCashEquivalentsMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:PrivateEquityFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:USandForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:ForeignEquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:CorporateDebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:ForeignEquitySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:USEquitySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 axta:USEquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MaximumMember us-gaap:RealEstateMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MaximumMember us-gaap:EquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 srt:MaximumMember us-gaap:DebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MinimumMember us-gaap:EquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:EquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 srt:MinimumMember us-gaap:RealEstateMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:RealEstateMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MaximumMember us-gaap:EquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 srt:MinimumMember us-gaap:DebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MaximumMember us-gaap:OtherAssetsMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MinimumMember us-gaap:OtherAssetsMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MaximumMember us-gaap:OtherAssetsMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:DebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 srt:MaximumMember us-gaap:RealEstateMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 srt:MaximumMember us-gaap:DebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:OtherAssetsMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 srt:MaximumMember us-gaap:RealEstateMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:RealEstateMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 srt:MaximumMember us-gaap:EquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MinimumMember us-gaap:DebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:OtherAssetsMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:EquitySecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0001616862 srt:MaximumMember us-gaap:OtherAssetsMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 srt:MaximumMember us-gaap:DebtSecuritiesMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0001616862 us-gaap:PerformanceSharesMember 2018-01-01 2018-12-31 0001616862 us-gaap:PerformanceSharesMember 2017-12-31 0001616862 us-gaap:PerformanceSharesMember 2018-12-31 0001616862 us-gaap:EmployeeStockOptionMember axta:A2014PlanMember 2016-01-01 2016-12-31 0001616862 us-gaap:EmployeeStockOptionMember axta:A2014PlanMember 2017-01-01 2017-12-31 0001616862 us-gaap:EmployeeStockOptionMember axta:A2014PlanMember 2018-01-01 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember 2017-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember 2018-01-01 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember 2017-01-01 2017-12-31 0001616862 srt:MinimumMember us-gaap:PerformanceSharesMember 2018-01-01 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember 2016-01-01 2016-12-31 0001616862 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2018-01-01 2018-12-31 0001616862 srt:MaximumMember us-gaap:PerformanceSharesMember 2018-01-01 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2018-01-01 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember axta:SharebasedCompensationAwardTrancheFourMember 2018-01-01 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2018-01-01 2018-12-31 0001616862 axta:RestrictedStockandRestrictedStockUnitsMember axta:SharebasedCompensationAwardTrancheFiveMember 2018-01-01 2018-12-31 0001616862 srt:SubsidiariesMember 2016-01-01 2016-12-31 0001616862 srt:SubsidiariesMember 2017-01-01 2017-12-31 0001616862 us-gaap:GeographicDistributionForeignMember 2017-12-31 0001616862 us-gaap:GeographicDistributionForeignMember 2018-12-31 0001616862 us-gaap:GeographicDistributionDomesticMember 2018-12-31 0001616862 us-gaap:GeographicDistributionDomesticMember 2017-12-31 0001616862 axta:Expiresafter10yearsorindefiniteMember 2017-12-31 0001616862 axta:Expireswithin10yearsMember 2017-12-31 0001616862 axta:Expireswithin10yearsMember 2018-12-31 0001616862 axta:Expiresafter10yearsorindefiniteMember 2018-12-31 0001616862 2017-10-01 2017-12-31 0001616862 us-gaap:BuildingAndBuildingImprovementsMember 2017-12-31 0001616862 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2017-12-31 0001616862 us-gaap:MachineryAndEquipmentMember 2017-12-31 0001616862 us-gaap:PropertyPlantAndEquipmentOtherTypesMember 2018-12-31 0001616862 us-gaap:MachineryAndEquipmentMember 2018-12-31 0001616862 srt:MaximumMember us-gaap:MachineryAndEquipmentMember 2018-01-01 2018-12-31 0001616862 us-gaap:ConstructionInProgressMember 2018-12-31 0001616862 us-gaap:LandMember 2017-12-31 0001616862 us-gaap:ConstructionInProgressMember 2017-12-31 0001616862 srt:MinimumMember us-gaap:PropertyPlantAndEquipmentOtherTypesMember 2018-01-01 2018-12-31 0001616862 us-gaap:LandMember 2018-12-31 0001616862 srt:MaximumMember us-gaap:PropertyPlantAndEquipmentOtherTypesMember 2018-01-01 2018-12-31 0001616862 srt:MaximumMember us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-01-01 2018-12-31 0001616862 srt:MaximumMember us-gaap:BuildingAndBuildingImprovementsMember 2018-01-01 2018-12-31 0001616862 srt:MinimumMember us-gaap:BuildingAndBuildingImprovementsMember 2018-01-01 2018-12-31 0001616862 us-gaap:PropertyPlantAndEquipmentOtherTypesMember 2017-12-31 0001616862 srt:MinimumMember us-gaap:MachineryAndEquipmentMember 2018-01-01 2018-12-31 0001616862 us-gaap:BuildingAndBuildingImprovementsMember 2018-12-31 0001616862 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember 2018-12-31 0001616862 axta:A2024EuroSeniorNotesMember 2017-12-31 0001616862 axta:A2024DollarTermLoansMember 2017-12-31 0001616862 axta:A2023EuroTermLoanMember 2017-12-31 0001616862 axta:A2023EuroTermLoanMember 2018-12-31 0001616862 axta:A2025EuroSeniorNotesMember 2017-12-31 0001616862 axta:A2024DollarSeniorNotesMember 2017-12-31 0001616862 axta:A2024EuroSeniorNotesMember 2018-12-31 0001616862 axta:A2024DollarSeniorNotesMember 2018-12-31 0001616862 axta:A2024DollarTermLoansMember 2018-12-31 0001616862 axta:A2025EuroSeniorNotesMember 2018-12-31 0001616862 axta:A2023EuroTermLoanMember 2018-01-01 2018-12-31 0001616862 axta:A2025EuroSeniorNotesMember 2016-09-27 0001616862 us-gaap:RevolvingCreditFacilityMember 2016-08-01 2016-08-01 0001616862 axta:DollarTermLoanDue2020Member 2016-10-31 2016-10-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodOneMember axta:EuroSeniorNotesMember 2016-01-01 2016-12-31 0001616862 axta:A2024DollarTermLoansMember 2017-01-01 2017-12-31 0001616862 2016-08-16 2016-08-16 0001616862 us-gaap:RevolvingCreditFacilityMember 2018-01-01 2018-12-31 0001616862 axta:BuildtosuitLeaseandSaleleasebackFinancingMember 2018-12-31 0001616862 axta:A2024DollarTermLoansMember us-gaap:BaseRateMember 2017-06-01 2017-06-01 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilitiesMember 2014-02-03 2014-02-03 0001616862 axta:A2024DollarSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilityBaseRateLoansMember 2016-08-01 0001616862 axta:A2024EuroSeniorNotesMember 2016-08-16 0001616862 axta:DollarTermLoanDue2020Member 2014-07-01 2014-09-30 0001616862 axta:A2024DollarSeniorNotesMember 2013-02-01 2013-02-01 0001616862 2014-02-03 2014-02-03 0001616862 axta:A2024DollarTermLoansMember 2017-06-01 0001616862 axta:WriteoffofOriginalIssueDiscountsMember axta:DollarTermLoanDue2020Member 2016-01-01 2016-12-31 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilitiesMember us-gaap:EurodollarMember 2016-08-16 2016-08-16 0001616862 axta:A2024DollarTermLoansMember 2018-01-01 2018-12-31 0001616862 axta:A2023DollarTermLoanMember 2017-06-01 0001616862 2014-07-01 2014-09-30 0001616862 axta:A2024DollarTermLoansMember 2018-04-11 0001616862 axta:DollarTermLoanDue2020Member us-gaap:InterestRateFloorMember 2016-12-14 2016-12-14 0001616862 2016-08-01 2016-08-01 0001616862 axta:A2024DollarSeniorNotesMember 2016-08-16 0001616862 axta:EuroTermLoanDue2020Member axta:EurocurrencyRateLoansMember 2016-12-14 2016-12-14 0001616862 axta:DollarTermLoanDue2020Member us-gaap:BaseRateMember 2016-12-14 2016-12-14 0001616862 axta:A2021DollarSeniorNotesMember 2013-02-01 0001616862 axta:A2024DollarTermLoansMember 2018-04-10 0001616862 axta:A2023EuroTermLoanMember us-gaap:InterestRateFloorMember 2016-12-15 2016-12-15 0001616862 axta:A2024EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 axta:A2021EuroSeniorNotesMember 2016-12-31 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilityBaseRateLoansMember us-gaap:FederalFundsEffectiveSwapRateMember 2016-08-16 2016-08-16 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilitiesMember 2016-08-16 2016-08-16 0001616862 axta:EuroTermLoanDue2020Member 2016-09-01 2016-09-30 0001616862 axta:A2023DollarTermLoanMember us-gaap:InterestRateFloorMember 2016-12-15 2016-12-15 0001616862 us-gaap:RevolvingCreditFacilityMember 2018-12-31 0001616862 axta:A2024DollarSeniorNotes2024EuroSeniorNotesand2025EuroSeniorNotesMember 2018-12-31 0001616862 axta:DollarTermLoanDue2020Member 2016-12-15 0001616862 axta:A2024DollarTermLoansMember axta:EurocurrencyRateLoansMember us-gaap:InterestRateFloorMember 2017-06-01 2017-06-01 0001616862 axta:A2025EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 axta:SevenPointThreeSevenFivePercentSeniorUnsecuredNotesDueTwoThousandTwentyOneMember 2013-02-01 2013-02-01 0001616862 axta:DollarTermLoanDue2020Member 2016-12-31 0001616862 axta:A2021EuroSeniorNotesMember 2016-01-01 2016-12-31 0001616862 axta:DollarTermLoanDue2020Member axta:EurocurrencyRateLoansMember 2016-12-14 2016-12-14 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilitiesMember us-gaap:EurodollarMember 2018-12-31 0001616862 axta:EuroTermLoanDue2020Member 2014-07-01 2014-09-30 0001616862 axta:A2024DollarTermLoanand2023EuroTermLoanMember 2018-01-01 2018-12-31 0001616862 axta:A2024DollarTermLoansMember axta:EurocurrencyRateLoansMember us-gaap:InterestRateFloorMember 2017-05-31 2017-05-31 0001616862 us-gaap:RevolvingCreditFacilityMember 2016-08-01 0001616862 axta:A2024EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 axta:EuroTermLoanDue2020Member us-gaap:InterestRateFloorMember 2016-12-14 0001616862 axta:A2023DollarTermLoanMember 2016-12-15 0001616862 axta:A2023DollarTermLoanMember 2017-01-01 2017-12-31 0001616862 axta:A2021EuroSeniorNotesMember 2013-02-01 0001616862 axta:A2021DollarSeniorNotesMember 2016-12-31 0001616862 axta:A2023DollarTermLoanMember us-gaap:BaseRateMember 2016-12-15 2016-12-15 0001616862 us-gaap:RevolvingCreditFacilityMember 2017-12-31 0001616862 axta:A2021DollarSeniorNotesMember 2016-01-01 2016-12-31 0001616862 axta:A2023DollarTermLoanMember axta:EurocurrencyRateLoansMember 2016-12-15 2016-12-15 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilityBaseRateLoansMember 2014-02-03 2014-02-03 0001616862 axta:A2023EuroTermLoanMember 2016-12-15 0001616862 axta:DollarTermLoanDue2020Member 2016-04-01 2016-10-31 0001616862 axta:A2025EuroSeniorNotesMember axta:AnyTimePriortoJanuary152020Member 2018-01-01 2018-12-31 0001616862 axta:WriteoffofOriginalIssueDiscountsMember axta:DollarTermLoanDue2020Member 2016-04-01 2016-10-31 0001616862 axta:EuroTermLoanDue2020Member 2016-12-14 2016-12-14 0001616862 axta:A2024DollarSeniorNotesMember axta:AnyTimePriortoAugust152019Member 2016-08-16 2016-08-16 0001616862 axta:A2024DollarSeniorNotes2024EuroSeniorNotesand2025EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 axta:A2024EuroSeniorNotesMember axta:AnyTimePriortoAugust152019Member 2016-08-16 2016-08-16 0001616862 us-gaap:RevolvingCreditFacilityMember 2016-01-01 2016-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodOneMember axta:A2021DollarSeniorNotesMember 2018-01-01 2018-12-31 0001616862 axta:A2024DollarTermLoanand2023EuroTermLoanMember 2018-12-31 0001616862 axta:A2024DollarTermLoansMember axta:EurocurrencyRateLoansMember 2017-06-01 2017-06-01 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilityBaseRateLoansMember axta:AdjustedEuroCurrencyRateMember 2016-08-16 2016-08-16 0001616862 us-gaap:RevolvingCreditFacilityMember axta:SeniorSecuredCreditFacilityBaseRateLoansMember 2016-08-16 2016-08-16 0001616862 axta:DollarTermLoanDue2020Member 2016-01-01 2016-12-31 0001616862 axta:EuroTermLoanDue2020Member 2016-12-15 0001616862 axta:A2023EuroTermLoanMember axta:EurocurrencyRateLoansMember 2016-12-15 2016-12-15 0001616862 us-gaap:RevolvingCreditFacilityMember 2016-07-31 0001616862 axta:FivePointSevenFiveZeroPercentSeniorSecuredNotesDueTwoThousandTwentyOneMember 2013-02-01 2013-02-01 0001616862 axta:A2024DollarTermLoansMember axta:EurocurrencyRateLoansMember 2017-05-31 2017-05-31 0001616862 axta:A2024DollarTermLoansMember us-gaap:BaseRateMember 2017-05-31 2017-05-31 0001616862 axta:DollarTermLoanDue2020Member 2016-04-01 2016-04-30 0001616862 us-gaap:DebtInstrumentRedemptionPeriodTwoMember axta:A2024EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodOneMember axta:A2024EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodThreeMember axta:A2024EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodFourMember axta:A2024EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodTwoMember axta:A2025EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodThreeMember axta:A2025EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodFourMember axta:A2025EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodOneMember axta:A2025EuroSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodOneMember axta:A2024DollarSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodThreeMember axta:A2024DollarSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodFourMember axta:A2024DollarSeniorNotesMember 2018-01-01 2018-12-31 0001616862 us-gaap:DebtInstrumentRedemptionPeriodTwoMember axta:A2024DollarSeniorNotesMember 2018-01-01 2018-12-31 0001616862 axta:DollarTermLoanDue2020Member axta:EurocurrencyRateLoansMember 2016-12-14 0001616862 axta:DollarTermLoanDue2020Member us-gaap:BaseRateMember 2016-12-14 0001616862 us-gaap:RevolvingCreditFacilityMember 2017-01-01 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:NondesignatedMember 2018-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2025EuroSeniorNotesMember 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel1Member us-gaap:NondesignatedMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarSeniorNotesMember us-gaap:FairValueInputsLevel2Member 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024EuroSeniorNotesMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarTermLoansMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarSeniorNotesMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel3Member us-gaap:NondesignatedMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024EuroSeniorNotesMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel1Member us-gaap:NondesignatedMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarTermLoansMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:CurrencySwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2023EuroTermLoanMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024EuroSeniorNotesMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarTermLoansMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2023EuroTermLoanMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarTermLoansMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2023EuroTermLoanMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarSeniorNotesMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2023EuroTermLoanMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarTermLoansMember us-gaap:FairValueInputsLevel2Member 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2025EuroSeniorNotesMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarTermLoansMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024EuroSeniorNotesMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2025EuroSeniorNotesMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024EuroSeniorNotesMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel1Member us-gaap:NondesignatedMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:CurrencySwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2025EuroSeniorNotesMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarSeniorNotesMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:NondesignatedMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:NondesignatedMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024EuroSeniorNotesMember us-gaap:FairValueInputsLevel2Member 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarSeniorNotesMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:CurrencySwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2025EuroSeniorNotesMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel3Member us-gaap:NondesignatedMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2023EuroTermLoanMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2023EuroTermLoanMember us-gaap:FairValueInputsLevel2Member 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024EuroSeniorNotesMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel1Member us-gaap:NondesignatedMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024EuroSeniorNotesMember 2018-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2023EuroTermLoanMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarTermLoansMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarSeniorNotesMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2025EuroSeniorNotesMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:CurrencySwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel3Member us-gaap:NondesignatedMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel2Member 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CurrencySwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2018-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:NondesignatedMember 2017-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel3Member us-gaap:NondesignatedMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2023EuroTermLoanMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarTermLoansMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateCapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2025EuroSeniorNotesMember us-gaap:FairValueInputsLevel2Member 2017-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001616862 us-gaap:OtherLiabilitiesMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2025EuroSeniorNotesMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarSeniorNotesMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001616862 us-gaap:OtherAssetsMember us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel3Member us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001616862 us-gaap:LongTermDebtMember axta:A2024DollarSeniorNotesMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0001616862 us-gaap:CurrencySwapMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel2Member 2017-01-01 2017-12-31 0001616862 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel2Member 2018-01-01 2018-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel2Member 2017-01-01 2017-12-31 0001616862 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel2Member 2017-01-01 2017-12-31 0001616862 us-gaap:FairValueInputsLevel2Member 2018-01-01 2018-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel2Member 2018-01-01 2018-12-31 0001616862 us-gaap:CurrencySwapMember us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel2Member 2018-01-01 2018-12-31 0001616862 us-gaap:FairValueInputsLevel2Member 2017-01-01 2017-12-31 0001616862 us-gaap:ForeignExchangeContractMember us-gaap:InterestExpenseMember 2017-01-01 2017-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:InterestExpenseMember 2017-01-01 2017-12-31 0001616862 us-gaap:InterestExpenseMember 2018-01-01 2018-12-31 0001616862 us-gaap:InterestExpenseMember 2016-01-01 2016-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:InterestExpenseMember 2016-01-01 2016-12-31 0001616862 us-gaap:ForeignExchangeContractMember us-gaap:InterestExpenseMember 2016-01-01 2016-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:InterestExpenseMember 2018-01-01 2018-12-31 0001616862 us-gaap:ForeignExchangeContractMember us-gaap:InterestExpenseMember 2018-01-01 2018-12-31 0001616862 us-gaap:InterestExpenseMember 2017-01-01 2017-12-31 0001616862 us-gaap:CurrencySwapMember 2018-12-31 0001616862 axta:EuroTermLoanDue2020Member 2013-12-31 0001616862 axta:EuroTermLoanDue2020Member us-gaap:InterestRateCapMember 2013-12-31 0001616862 us-gaap:CurrencySwapMember 2018-06-30 0001616862 us-gaap:CurrencySwapMember 2018-01-01 2018-12-31 0001616862 axta:A2023EuroTermLoanMember 2017-12-31 0001616862 us-gaap:InterestRateSwapMember 2018-06-30 0001616862 axta:A2024DollarTermLoansMember us-gaap:InterestRateCapMember 2017-12-31 0001616862 axta:December312021Member axta:A2024DollarTermLoansMember us-gaap:InterestRateCapMember 2017-12-31 0001616862 axta:December312019Member axta:A2024DollarTermLoansMember us-gaap:InterestRateCapMember 2017-12-31 0001616862 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2016-01-01 2016-12-31 0001616862 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2016-01-01 2016-12-31 0001616862 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2017-01-01 2017-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:CashFlowHedgingMember 2018-01-01 2018-12-31 0001616862 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2017-01-01 2017-12-31 0001616862 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2017-01-01 2017-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:CashFlowHedgingMember 2016-01-01 2016-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2017-01-01 2017-12-31 0001616862 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2018-01-01 2018-12-31 0001616862 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2018-01-01 2018-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2018-01-01 2018-12-31 0001616862 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2016-01-01 2016-12-31 0001616862 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember 2017-01-01 2017-12-31 0001616862 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember 2016-01-01 2016-12-31 0001616862 us-gaap:CurrencySwapMember us-gaap:CashFlowHedgingMember 2018-01-01 2018-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:CashFlowHedgingMember 2017-01-01 2017-12-31 0001616862 us-gaap:InterestRateCapMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2016-01-01 2016-12-31 0001616862 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2018-01-01 2018-12-31 0001616862 srt:LatinAmericaMember 2017-12-31 0001616862 srt:AsiaPacificMember 2017-12-31 0001616862 srt:AsiaPacificMember 2018-12-31 0001616862 us-gaap:EMEAMember 2017-12-31 0001616862 us-gaap:EMEAMember 2018-12-31 0001616862 srt:NorthAmericaMember 2017-12-31 0001616862 srt:NorthAmericaMember 2018-12-31 0001616862 srt:LatinAmericaMember 2018-12-31 0001616862 axta:TransportationCoatingsMember 2016-01-01 2016-12-31 0001616862 axta:PerformanceCoatingsMember 2016-01-01 2016-12-31 0001616862 axta:LightVehicleMember axta:TransportationCoatingsMember 2016-01-01 2016-12-31 0001616862 axta:RefinishMember axta:PerformanceCoatingsMember 2018-01-01 2018-12-31 0001616862 axta:CommercialVehicleMember axta:TransportationCoatingsMember 2017-01-01 2017-12-31 0001616862 axta:LightVehicleMember axta:TransportationCoatingsMember 2018-01-01 2018-12-31 0001616862 axta:CommercialVehicleMember axta:TransportationCoatingsMember 2018-01-01 2018-12-31 0001616862 axta:IndustrialMember axta:PerformanceCoatingsMember 2016-01-01 2016-12-31 0001616862 axta:RefinishMember axta:PerformanceCoatingsMember 2017-01-01 2017-12-31 0001616862 axta:IndustrialMember axta:PerformanceCoatingsMember 2017-01-01 2017-12-31 0001616862 axta:IndustrialMember axta:PerformanceCoatingsMember 2018-01-01 2018-12-31 0001616862 axta:CommercialVehicleMember axta:TransportationCoatingsMember 2016-01-01 2016-12-31 0001616862 axta:LightVehicleMember axta:TransportationCoatingsMember 2017-01-01 2017-12-31 0001616862 axta:RefinishMember axta:PerformanceCoatingsMember 2016-01-01 2016-12-31 0001616862 srt:LatinAmericaMember 2017-01-01 2017-12-31 0001616862 srt:NorthAmericaMember 2016-01-01 2016-12-31 0001616862 us-gaap:EMEAMember 2017-01-01 2017-12-31 0001616862 srt:NorthAmericaMember 2018-01-01 2018-12-31 0001616862 srt:AsiaPacificMember 2017-01-01 2017-12-31 0001616862 us-gaap:EMEAMember 2018-01-01 2018-12-31 0001616862 srt:AsiaPacificMember 2018-01-01 2018-12-31 0001616862 us-gaap:EMEAMember 2016-01-01 2016-12-31 0001616862 srt:LatinAmericaMember 2016-01-01 2016-12-31 0001616862 srt:LatinAmericaMember 2018-01-01 2018-12-31 0001616862 srt:NorthAmericaMember 2017-01-01 2017-12-31 0001616862 srt:AsiaPacificMember 2016-01-01 2016-12-31 0001616862 country:BR 2017-12-31 0001616862 country:BR 2018-12-31 0001616862 country:CA 2017-12-31 0001616862 country:DE us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2017-01-01 2017-12-31 0001616862 country:MX us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2018-01-01 2018-12-31 0001616862 country:CA 2018-12-31 0001616862 country:CN us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2018-01-01 2018-12-31 0001616862 country:CN us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2017-01-01 2017-12-31 0001616862 country:CN 2018-12-31 0001616862 country:DE us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2016-01-01 2016-12-31 0001616862 country:DE us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2018-01-01 2018-12-31 0001616862 country:CN us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2016-01-01 2016-12-31 0001616862 country:DE 2017-12-31 0001616862 country:CN 2017-12-31 0001616862 country:DE 2018-12-31 0001616862 country:CA us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2018-01-01 2018-12-31 0001616862 country:VE srt:SubsidiariesMember 2016-01-01 2016-12-31 0001616862 country:VE 2017-01-01 2017-12-31 0001616862 country:VE srt:SubsidiariesMember 2017-04-01 2017-06-30 0001616862 country:VE 2016-01-01 2016-12-31 0001616862 axta:TermLoanMember 2016-01-01 2016-12-31 0001616862 axta:TermLoanMember 2017-01-01 2017-12-31 0001616862 country:MX us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2017-01-01 2017-12-31 0001616862 country:CA us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2016-01-01 2016-12-31 0001616862 country:MX us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2016-01-01 2016-12-31 0001616862 country:CA us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2017-01-01 2017-12-31 0001616862 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0001616862 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-12-31 0001616862 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2016-12-31 0001616862 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-01-01 2017-12-31 0001616862 us-gaap:AccumulatedTranslationAdjustmentMember 2017-01-01 2017-12-31 0001616862 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-01-01 2017-12-31 0001616862 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-01-01 2017-12-31 0001616862 us-gaap:AccumulatedTranslationAdjustmentMember 2016-12-31 0001616862 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0001616862 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0001616862 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2016-12-31 0001616862 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2016-12-31 0001616862 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2016-01-01 2016-12-31 0001616862 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2016-01-01 2016-12-31 0001616862 us-gaap:AccumulatedTranslationAdjustmentMember 2016-01-01 2016-12-31 0001616862 us-gaap:AccumulatedTranslationAdjustmentMember 2015-12-31 0001616862 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2016-01-01 2016-12-31 0001616862 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2015-12-31 0001616862 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2015-12-31 0001616862 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2015-12-31 0001616862 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-12-31 0001616862 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001616862 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 0001616862 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-12-31 0001616862 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-01-01 2018-12-31 0001616862 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0001616862 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001616862 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-12-31 0001616862 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 0001616862 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-01-01 0001616862 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-12-31 0001616862 country:VE srt:SubsidiariesMember 2017-12-31 0001616862 srt:SubsidiariesMember axta:PerformanceCoatingsMember 2016-01-01 2016-12-31 0001616862 srt:SubsidiariesMember axta:TransportationCoatingsMember 2016-01-01 2016-12-31 0001616862 country:VE srt:SubsidiariesMember 2017-01-01 2017-12-31 0001616862 srt:SubsidiariesMember us-gaap:CustomerListsMember 2016-01-01 2016-12-31 0001616862 srt:SubsidiariesMember country:VE 2016-01-01 2016-12-31 0001616862 srt:SubsidiariesMember us-gaap:PropertyPlantAndEquipmentMember 2016-01-01 2016-12-31 0001616862 country:VE srt:SubsidiariesMember 2018-12-31 0001616862 2018-01-01 2018-03-31 0001616862 2017-07-01 2017-09-30 0001616862 2018-07-01 2018-09-30 0001616862 2018-04-01 2018-06-30 0001616862 2017-04-01 2017-06-30 0001616862 2018-10-01 2018-12-31 0001616862 2017-01-01 2017-03-31 0001616862 us-gaap:AllowanceForCreditLossMember 2017-01-01 2017-12-31 0001616862 us-gaap:AllowanceForCreditLossMember 2016-01-01 2016-12-31 0001616862 us-gaap:AllowanceForCreditLossMember 2016-12-31 0001616862 us-gaap:AllowanceForCreditLossMember 2017-12-31 0001616862 us-gaap:AllowanceForCreditLossMember 2018-01-01 2018-12-31 0001616862 us-gaap:AllowanceForCreditLossMember 2018-12-31 0001616862 us-gaap:AllowanceForCreditLossMember 2015-12-31 0001616862 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2016-12-31 0001616862 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2018-01-01 2018-12-31 0001616862 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2017-12-31 0001616862 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2017-01-01 2017-12-31 0001616862 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2016-01-01 2016-12-31 0001616862 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2015-12-31 0001616862 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2018-12-31 iso4217:EUR axta:business xbrli:shares xbrli:pure iso4217:USD iso4217:USD xbrli:shares axta:Jurisdiction axta:Segment

 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-K
 
 
ý
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2018
or
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     .
Commission File Number: 001-36733
 
AXALTA COATING SYSTEMS LTD.
(Exact name of registrant as specified in its charter)
 
Bermuda
 
2851
 
98-1073028
(State or other jurisdiction of
incorporation or organization)
 
(Primary Standard Industrial
Classification Code Number)
 
(I.R.S. Employer
Identification No.)
Two Commerce Square
2001 Market Street
Suite 3600
Philadelphia, Pennsylvania 19103
(855) 547-1461
(Address, including zip code, and telephone number, including area code, of the registrant’s principal executive offices)
 
Securities registered pursuant to Section 12(b) of the Act:
Common Shares, $1.00 par value
 
 
 
New York Stock Exchange
(title of class)
 
 
 
(Exchange on which registered)
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act Yes  ý    No  ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act Yes  ¨    No  ý
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý No  ¨
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).   Yes  ý    No  ¨
Indicate by check mark if the disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý
Indicate by check mark whether the Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ý Non-accelerated filer ¨ Accelerated filer ¨ Small reporting company ¨ Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨
Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý
As of June 30, 2018, the last day of the registrant's most recently completed second fiscal quarter, the aggregate market value of the registrant's common stock held by non-affiliates of the registrant was approximately $7,646.5 million (based on the closing sale price of the common stock on that date on the New York Stock Exchange).
As of February 19, 2019, there were 234,282,735 shares of the registrant’s common shares outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Part III incorporates information by reference from the registrant's Proxy Statement for the 2019 Annual Meeting of the Shareholders. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the close of the registrant's fiscal year ended December 31, 2018.
 
 
 
 
 

1


Table of Contents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2

Table of Contents

PART I
ITEM 1. BUSINESS
Axalta Coating Systems Ltd. ("Axalta," the "Company," "we," "our" and "us"), is a leading global manufacturer, marketer and distributor of high performance coatings systems. We have over a 150-year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technology and customer service. Over the course of our history we have remained at the forefront of our industry by continually developing innovative coatings technologies designed to enhance the performance and appearance of our customers' products, while improving their productivity and profitability.

Axalta is a Bermuda exempted company incorporated at the direction of an affiliate of The Carlyle Group L.P. ("Carlyle") on August 24, 2012 for the purpose of consummating the acquisition of DuPont Performance Coatings ("DPC"), a business formerly owned by E. I. du Pont de Nemours and Company ("DuPont"), including certain assets of DPC and all of the capital stock and other equity interests of certain entities engaged in the DPC business (the "Acquisition"). Axalta, through its wholly-owned indirect subsidiaries, acquired DPC on February 1, 2013.

Axalta is a holding company with no business operations or assets other than primarily cash and cash equivalents. Our global operations are conducted by indirect wholly-owned subsidiaries and indirect majority-owned subsidiaries.

Our diverse global footprint of 50 manufacturing facilities, four technology centers, 47 customer training centers and more than 14,000 employees allows us to meet the needs of customers in over 130 countries. We serve our customer base through an extensive sales force and technical support organization, as well as through approximately 4,000 independent, locally-based distributors. Our scale and strong local presence are critical to our success, allowing us to leverage our technology portfolio and customer relationships globally while meeting customer demands locally. We operate our business in two operating segments, Performance Coatings and Transportation Coatings, serving four end-markets globally as highlighted below. See the discussion and reconciliation of Adjusted EBITDA to the closest U.S. GAAP numbers in Item 7 and Note 19 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
businesscharts2018v3.jpg
The table above reflects numbers for the year ended December 31, 2018. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Net sales.

3

Table of Contents

Net sales for our four end-markets and four regions for the year ended December 31, 2018 are highlighted below:
salesbyendmarketa09.jpgsalesbygeographya09.jpg
Note: Latin America includes Mexico. EMEA represents Europe, Middle East and Africa.
SEGMENT OVERVIEW
Performance Coatings
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base, as well as a number of regional and global customers. 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.
perfsalesbyendmarketa09.jpgperfsalesbygeographya09.jpg
Performance Coatings End-Markets
Refinish
Sales in the refinish end-market are driven by the number of vehicle collisions, owners’ propensity to repair their vehicles, the number of miles vehicle owners drive and the size of the car parc. Although refinish coatings typically represent only a small portion of the overall vehicle repair cost, they are critical to the vehicle owner’s satisfaction given their impact on appearance. As a result, body shop operators are most focused on coatings brands with a strong track record of performance and reliability. Body shops look for suppliers and brands with productivity enhancements, regulatory compliance, consistent quality, the presence of ongoing technical support and exact color match technologies. Color matching is a critical component of coatings supplier selection, since inexact matching adversely impacts vehicle appearance, and if repainting is required due to a poor match, it can significantly impact the speed and volume of repairs at a given shop.
We develop, market and supply a complete portfolio of innovative coatings systems and color matching technologies to facilitate faster automotive collision repairs relative to competing technologies. Our color matching technology provides Axalta-specific formulations that enable body shops to accurately match thousands of vehicle colors, regardless of vehicle brand, color, age or supplier of the original paint during production. It would be time consuming and costly for a new entrant to create such an extensive color inventory.

4

Table of Contents

Industrial
The industrial end-market is comprised of liquid and powder coatings used in a broad array of end-market applications. Within the industrial end-market, we focus on the following:
General Industrial: coatings for a wide and diverse array of applications, including HVAC, shelving, appliances and electrical storage components, metal furniture, industrial components, sports equipment and playground equipment as well as ACE, fencing, valves and specialized coatings used for coating the interior of metal drums and packaging and coatings for the exterior of glass bottles.
Electrical Insulation Systems: coatings to insulate copper wire used in motors and transformers and coatings to insulate sheets forming magnetic circuits of motors and transformers, computer elements and other electrical components.
Architectural: exterior powder and liquid coatings typically used in the construction of extrusions for commercial structures, residential windows, doors and cladding.
Transportation: liquid and powder coatings for vehicle components, chassis and wheels to protect against corrosion, provide increased durability and impart appropriate aesthetics.
Oil & Gas: liquid and powder products to coat tanks, pipelines, valves and fittings protecting against chemicals, corrosion and extreme temperatures in the oil & gas industry.
Coil: coatings utilized in various applications such as metal building roof and wall panels, residential and commercial steel roofing, gutters, appliances, lighting, garage and entry doors, HVAC, office furniture and truck trailers.
Wood: coatings utilized in OEM and aftermarket industrial wood markets, including building products, cabinets, flooring and furniture.
Demand in this end-market is driven by a wide variety of macroeconomic factors, such as growth in GDP, new residential and commercial construction and industrial production. There has also been an increase in demand for products that enhance environmental sustainability, corrosion resistance, productivity, and color aesthetics. These global trends are bolstered by regional and industry specific trends. Customers select industrial coatings based on protection, durability and appearance.
Performance Coatings Products and Brands
We offer a comprehensive range of specially-formulated waterborne and solventborne products and systems used by the global automotive repair industry to refinish damaged vehicles. Our refinish products and systems include a range of coatings layers required to match the vehicle’s color and appearance, producing a repair surface indistinguishable from the adjacent surface.
We provide systems that enable body shops to match more than 200,000 color variations, using a database with more than four million formulations, in the global market. Our color technology is manifested in the pigment technology that goes into our tints, one of the most technologically advanced parts of the refinish coatings system, which makes up the majority of our products in a body shop. We have a large color library and a number of well-known, long-standing premium brands, including Cromax®, Standox®, Spies Hecker®, and our newest mainstream product, Syrox™, which was introduced in EMEA in 2016, as well as other regional and local brands.
Our color matching and retrieval systems allow customers to quickly match any color, preventing body shop technicians from having to repeat the color matching process, saving time and materials. The color matching process begins with a technician scanning a damaged vehicle with one of our advanced color matching tools, such as our Acquire Plus EFX™ hand-held spectrophotometer. The Acquire Plus EFX lens reads the color, evaluating both the unique flake and color characteristics of the specific vehicle. These characteristics may vary significantly, even for vehicles of the same make, model and original color, due to a variety of factors, including a vehicle’s age, plant at which it was assembled, weather conditions and operating history. The Acquire Plus EFX electronically connects with our ColorNet® database and generates for the paint technician the precise mix of tints and colors needed to recreate that specific color needed for the part being repaired. In addition to the Acquire Plus EFX, we offer customers several other color matching tools, including our VINdicator® database, which identifies vehicle color based on its vehicle identification number, and traditional color matching wheels and fan decks.

5

Table of Contents

We are also a leading global developer, manufacturer and supplier of functional and decorative liquid and powder coatings for a large number of diversified applications in the industrial end-market. We provide a full portfolio of products for applications including architectural cladding and fittings, automotive components, general industrial, job coaters, electrical insulation coatings, HVAC, appliances, aluminum extrusions, rebar and oil & gas pipelines. Through an acquisition completed in 2017, we have also become a leading manufacturer and supplier of wood coatings sold into the building product, cabinet, flooring and furniture end-markets in North America. Our liquid systems are used to provide insulation and corrosion protection for electrical conductors and components, provide chemical resistance for the interiors of metal packaging drums, protect automotive parts and serve as basecoats for alloy and steel wheels. Powder coatings products are often an environmentally responsible, higher transfer efficiency alternative to liquid coatings. These coatings are typically electrostatically sprayed using a specialized spray gun and cured to create a uniform, high-quality finish. In the oil & gas industry our powder and liquid products are used to protect components from corrosion and severe conditions such as extreme temperatures.
Our major industrial brands include Voltatex®, AquaEC™, ZENITH®, Durapon®, Hydropon® and Ceranamel® for liquid coatings and Alesta®, Nap-Gard®, Abcite® and Plascoat® for powder.
Performance Coatings Sales, Marketing and Distribution
We leverage a large global refinish sales and technical support team to effectively serve our broad refinish customer base of approximately 80,000 body shops. The majority of our products are supplied by our network of approximately 4,000 independent local distributors. In select regions, including parts of Europe, we also sell directly to customers. Distributors maintain an inventory of our products to fill orders from body shops in their market and assume credit risk and responsibility for logistics, delivery and billing. In certain countries, we utilize importers that buy directly from us and actively market our products to body shops. Our relationships with our top ten distributors are longstanding and continue to contribute to our success in the global refinish market.
Our large sales force manages relationships directly with our end-customers to drive demand for our products, which in turn are purchased through customers in our distributor network. Due to the local nature of the refinish industry, our sales force operates on a regional/country basis to provide clients with responsive customer service and local insight. As part of their coverage efforts, salespeople introduce new products to body shops and provide technical support and ongoing training. We have 47 customer training centers established globally, which helps to deepen our customer relationships.
bodyshopsa10.jpg
Our sales force also helps to drive shop productivity improvements and to install or upgrade body shop color matching and mixing equipment to improve shop profitability. Once a coating and color system is installed, a body shop almost exclusively uses its specific supplier’s products. The proprietary nature of a coatings supplier’s color systems, the substantial inventory needed to support a body shop and the body shop’s familiarity with an established brand lead to high levels of customer retention. Our customer retention rate levels have been and continue to be strong.
To effectively reach our customers in the industrial end-market we generally ship directly and leverage a dedicated sales force and technical service team that operates on a regional basis. We are one of only three truly global powder coatings producers that can satisfy the needs and specifications of a customer in multiple regions of the world, while maximizing productivity from the broad scale and scope of our operations.
Performance Coatings Customers
Within our Performance Coatings segment, we sell coatings to customers in more than 130 countries. Our top ten customers accounted for approximately 18% of our Performance Coatings net sales during the year ended December 31, 2018.
In our industrial and refinish end-markets we serve a broad, fragmented customer base. Our industrial end-market is comprised of a wide variety of industrial manufacturers, while our refinish end-market is comprised of approximately 80,000 body shops, including:
Independent Body Shops: Single location body shops that utilize premium, mainstream or economy brands based on the local market.

6

Table of Contents

Multi-Shop Operators ("MSOs"): Body shops with more than one location focused on providing premium paint jobs with industry leading efficiency. MSOs use premium/mainstream coatings and state-of-the-art painting technology to increase shop productivity, allowing them to repair more vehicles faster.
Original Equipment Manufacturer Dealership Body Shops: High-productivity body shops, located in OEM car dealerships, that operate like MSOs and provide premium services to customers using premium/mainstream coatings.
Performance Coatings Competition
Our primary competitors in the refinish end-market include PPG, BASF and Akzo Nobel, but we also compete against regional players in local markets. Similarly, in the industrial end-market, we compete against multi-national suppliers, such as Akzo Nobel, PPG, Sherwin-Williams and a large number of local and regional players in local markets. We are one of the few performance coatings companies that can provide the customer service, technology, color design capability and product performance necessary to deliver exceptional value to our customers.
Transportation Coatings
Through our Transportation Coatings segment, we provide advanced coatings 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.
transsalesbyendmarketa09.jpgtranssalesbygeographya09.jpg
Transportation Coatings End-Markets
Light Vehicle
Demand for light vehicle products is driven by the production of light vehicles in a particular region. Light vehicle OEMs select coatings providers on the basis of their global ability to deliver advanced technological solutions that improve exterior appearance and durability and provide long-term corrosion protection. Customers also look for suppliers that can enhance process efficiency to reduce overall manufacturing costs and provide on-site technical support. Rigorous environmental and durability testing as well as obtaining engineering approvals are also key criteria used by global light vehicle OEMs when selecting coatings providers. Globally integrated suppliers are important because they offer products with consistent standards across regions and are able to deliver high-quality products in sufficient quantity while meeting OEM service requirements. Our global scale, differentiated technology platform and customer focus, including on-site support, position us to be a global partner and solutions provider to the most discerning and demanding light vehicle OEMs. We are one of the few coatings producers that can provide OEMs with global product specifications, standardized color development, compatibility with an ever-increasing number of substrates, increasingly complex colors and environmentally responsible coatings while continuing to simplify and reduce steps in the coating application process.
Commercial Vehicle
Sales in the commercial vehicle end-market are generated from a variety of applications, including non-automotive transportation (e.g., HDT, bus and rail), motorcycles, marine and aviation, as well as related markets such as trailers, recreational vehicles and personal sport vehicles. This end-market is primarily driven by global commercial vehicle production, which is influenced by overall economic activity, government infrastructure spending, equipment replacement cycles and evolving environmental standards.

7

Table of Contents

Commercial vehicle OEMs select coatings providers on the basis of their ability to consistently deliver advanced technological solutions that improve exterior appearance, protection and durability and provide extensive color libraries and matching capabilities at the lowest total cost-in-use, while meeting stringent environmental requirements. Particularly for HDT applications, truck owners demand a greater variety of custom colors and advanced product technologies to enable custom designs. Our strong market position and growth are driven by our ability to provide customers with our market-leading brand, Imron®, as well as leveraging our global product lines, regional knowledge and service. Additionally, to capture further growth we are launching a new suite of products to meet our customers’ evolving needs.
Transportation Coatings Products and Brands
We develop and supply a complete coatings product line for light vehicle OEMs for the original coating of new vehicles. Products are designed to enhance the styling and appearance of a vehicle’s exterior while providing protection from the elements, extending the life of the vehicle. Widely recognized in the industry for our advanced and patented technologies, our products not only increase productivity and profitability for OEMs but also produce attractive and durable finishes. Our light vehicle coatings portfolio is one of the broadest in the industry.
The coatings operation is a critical component of the vehicle assembly process, requiring a high degree of precision and speed. The paint shop process typically includes a dip process, three application zones and three high-temperature ovens that cure each coating layer at temperatures ranging from 320°F to 400°F (i.e., "high bake"). Our key products consist of the four main coatings layers: electrocoat (AquaEC™), primer (HyperDur™), basecoat (ChromaDyne™) and clearcoat (Lumeera™).
The coatings process accounts for a majority of the total energy consumed during the vehicle manufacturing process. As a result, we have developed Harmonized Coating TechnologiesTM, including 3-Wet, Eco-Concept and 2-Wet Monocoat, that help our OEM customers lower costs by reducing energy consumption while increasing productivity.
OEMs are also increasingly looking to reduce the weight of vehicles in response to increasing vehicle emissions and fuel consumption regulations. As a result, OEMs are constructing vehicle platforms using a variety of new materials in addition to steel and plastic, including aluminum, carbon fiber and other substrates, each of which requires specialized coatings formulations to create a uniform color and finish. We continue to innovate with our OEM customers in driving this trend, as evidenced by use of our coatings on their flagship vehicle platforms.
We also develop and supply a wide array of coatings systems for a broad range of commercial applications including HDT, bus, rail and ACE. These products simultaneously enhance aesthetic appearance and provide protection from the elements. We meet the demands of commercial vehicle customers with our extensive offering of over 75,000 different colors. In the HDT market, because the metal and composite components are painted simultaneously in an automatic process, most truck OEMs use low bake coatings to ensure that the plastic composite parts on a truck’s exterior do not deform during the process. Truck owners demand a wide variety of custom colors that are formulated using a combination of on-site mixing machines at the OEM or direct shipments of premixed high-volume colors from us. Our commercial vehicle brands include Imron®, Imron ExcelPro®, Imron Elite®, Centari®, Rival®, Corlar® epoxy undercoats and AquaEC™.
Transportation Coatings Sales, Marketing and Distribution
We have full-time technical representatives stationed at OEM facilities around the world. These on-site representatives provide customer support, monitor the painting process and track paint demand at each assembly plant. Monitoring OEM line performance in real-time allows our technical support teams to help improve paint department operating efficiency and provide performance feedback to our formulating chemists and paint manufacturing teams. Our customer technical support representatives also help OEMs manage their physical inventory by forecasting facility coatings demand based on the customer’s build schedule.
We sell and ship products directly to light vehicle OEM customers in each of our four regions coordinated via a global point of contact for each customer and assist OEMs with on-site customer support. Located in 14 countries, our manufacturing facilities provide a local presence that enables us to cultivate strong relationships, gain intimate customer knowledge, provide superior technical support to our key customers and maintain "just-in-time" product delivery capabilities critical to OEMs. Our local presence also allows us to quickly react to changing local dynamics, offer high-quality products and provide excellent customer service.
In the commercial vehicle end-market, we employ a dedicated sales and technical service team to support our diverse customer base, including a direct sales force supporting the HDT market. We ship our coatings directly to commercial vehicle OEMs and provide on-site technical service representatives that play an important role by helping optimize the painting process and by providing responsive customer support.

8

Table of Contents

Transportation Coatings Customers
We provide our products to light and commercial vehicle customers at over 200 assembly plants worldwide, including nine of the top ten global automotive manufacturers. We have a stable customer base with several relationships dating back approximately 90 years and believe we are well positioned with the fastest growing OEMs in both the developed and emerging markets. Our top ten customers accounted for approximately 68% of our Transportation Coatings net sales during the year ended December 31, 2018.
Transportation Coatings Competition
We primarily compete against large multi-national suppliers such as PPG and BASF in the light and commercial vehicle end-markets. Additionally, we compete against certain regional players in Asia Pacific. With our state-of-the-art coatings solutions and local presence in key OEM markets, we are one of the few competitors in the industry that offers global manufacturers the combination of high-quality products, personalized, top-rate technical service and short lead-times for product delivery.
KEY RAW MATERIALS
We use thousands of different raw materials, which fall into seven broad categories: liquid resins, powder resins, pigments, solvents, monomers, isocyanates and additives. On average, our total raw material spend represents between 45% and 55% of our cost of sales. We purchase raw materials from a diverse group of suppliers, with our top ten suppliers representing approximately 30% of our 2018 spending on raw materials.
Approximately 65% of the raw materials we procure are derived from crude oil and natural gas. While prices for these raw materials fluctuate with energy prices, such fluctuations are somewhat mitigated by the fact that the majority of our raw materials are fourth to sixth generation derivatives of crude oil and natural gas. The dynamics of supply and demand play a much more critical role in our cost of raw materials than just the price of crude oil. Non-petrochemical based inputs such as minerals that are used to manufacture coating pigments are not significantly affected by volatility in crude oil prices but tend to be impacted by the supply-demand dynamics of their industry.
Historically, to manage raw material volatility, we have used a combination of price increases to customers and, in limited circumstances, contractual raw material recovery mechanisms. Since 2001, our variable cost of sales has remained stable between 35% and 43% of net sales.
RESEARCH AND DEVELOPMENT
Our focus on technology has allowed us to proactively provide customers with next-generation offerings that enhance product performance, improve productivity and satisfy increasingly strict environmental regulations. Since our entry into the coatings industry over 150 years ago, we believe we have consistently been at the forefront of coatings technology innovation. These innovations have played a fundamental role in our ability to maintain and grow our global market share as well as deliver substantial financial returns.
We believe that we are a technology leader well positioned to benefit from continued industry shifts in customer needs. Our markets are among the most demanding in the coatings industry with high levels of product performance that continuously evolves, with increasing expectations for productivity on customer lines and with environmentally responsible products. Our technology development is led by a highly experienced and educated workforce that is focused on new product development, color development, technical customer support and improving our manufacturing processes. As such, our technology development covers two critical interrelated aspects for us, including research and development as well as technical support and manufacturing. In total, as of December 31, 2018, we have approximately 1,400 employees dedicated to technology development. We operate four major technology centers throughout the world where we develop and align our technology investments with regional business needs complemented by over 30 regional laboratories which provide local connection to our global customer base. This includes our new Global Innovation Center located in Philadelphia, Pennsylvania which opened in 2018 for global research, product development and technology initiatives.
PATENTS, LICENSES AND TRADEMARKS
As of December 31, 2018, we had a portfolio of over 740 issued patents and more than 400 trademarks. We actively apply for and obtain U.S. and foreign patents and trademarks on new products and process innovations and as of December 31, 2018, 189 patent applications were pending throughout the world.
Our primary purpose in obtaining patents is to protect the results of our research for use in operations and licensing. We are also party to a substantial number of patent licenses and other technology agreements. We have a significant number of trademarks and trademark registrations in the United States and in other countries, as described below.

9

Table of Contents

We own or otherwise have rights to the trademarks, service marks, copyrights and trade names used in conjunction with the marketing and sale of our products and services. These trademarks include Abcite®, Alesta®, AquaEC™, AudurraTM, Centari®, Ceranamel®, ChallengerTM, ChemophanTM, ColorNet®, Corlar®, Cromax®, Cromax Mosaic®, Durapon 70®, DuxoneTM, Harmonized Coating Technologies®, Hydropon®, Imron®, Imron Elite®, Imron ExcelPro®, LutophenTM, Nap-Gard®, Nason®, Rival®, Spies Hecker®, Standox®, StollaquidTM, SyntopalTM, SyroxTM, Vermeera® and Voltatex®, which are protected under applicable intellectual property laws and are the property of us and our subsidiaries.
Although we consider that our patents, licenses and trademarks in the aggregate constitute a valuable asset, we do not regard our business as being materially dependent on any single or group of related patents, licenses or trademarks.
JOINT VENTURES
We are party to 12 joint ventures, five of which are focused on the industrial end-market. We are the majority shareholder, and/or exercise control in our nine consolidated joint ventures. Our fully consolidated joint venture-related net sales were $315.6 million, $296.0 million and $231.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Part I, Item 1A, "Risk Factors—Risks Related to our Business—Risks Related to Other Aspects of our Business—Our joint ventures may not operate according to our business strategy if our joint venture partners fail to fulfill their obligations."
EMPLOYEES
As of December 31, 2018, we had approximately 14,000 employees located throughout the world consisting of sales, technical, manufacturing operations, supply chain, administrative and customer service personnel.
As of December 31, 2018, approximately 38% of our employees globally were covered by organized labor agreements, including works councils, with fewer than 10 employees in the United States covered by organized labor agreements. We consider our employee relations to be good overall.
ENVIRONMENTAL, HEALTH AND SAFETY
We are committed to environmental stewardship and to health, safety and sustainability excellence in our global operations. As such, we operate in compliance with applicable laws and regulations governing the protection of the environment and health and safety of our employees and neighboring communities.
Safety is integrated into the way we do business. Our safety program is structured on the foundation that every employee is engaged and committed to improving safe operating practices and eliminating injuries. When health and safety incidents do occur, we strive to determine the causes and eliminate the potential for future similar incidents. In 2018, Axalta’s injury and illness performance resulted in a 0.38 OSHA Recordable Incident Rate, compared to the 2.0 OSHA Recordable Incident Rate for the General Chemical Industry (according to the US Bureau of Labor Statistics 2017 data).
Our Environment, Health, Safety (EHS) and Sustainability policies and standards are a key element of the foundation upon which we develop, market, manufacture, and distribute products and services to our global customers. In 2017 we established a Board-level committee responsible for our EHS and Sustainability policies, performance, strategy and compliance matters. We operate our manufacturing facilities using a common set of internal standards. These standards support a consistent approach to EHS and Sustainability performance improvement. We strive to assure that all our manufacturing and distribution facilities are operated in compliance in all known material respects to applicable environmental requirements.
Many of our manufacturing sites have a long history of industrial operations and government required remediation is or may be required at a number of these locations. Although we are indemnified by DuPont for certain environmental liabilities and we do not expect outstanding remediation obligations to have a material impact on our financial position, the ultimate cost of remediation is subject to a number of variables and difficult to accurately predict. We may also incur significant additional costs as a result of contamination that is discovered and/or government required remediation obligations that are imposed at these or other properties in the future.
During 2016, Axalta achieved and continues to maintain a global, multi-site certification for RC14001. This certification incorporates the elements of the American Chemistry Council’s Responsible Care Program including product safety and compliance, process safety and security, as well as the ISO 14001 certification specifically related to our environmental stewardship program. We anticipate all manufacturing locations will be covered by this certificate by 2020.

10

Table of Contents

WHERE YOU CAN FIND MORE INFORMATION
Our website address is www.axalta.com. We post, and shareholders may access without charge, our recent filings and any amendments thereto of our annual reports on Form 10-K, quarterly reports on Form 10-Q and proxy statements as soon as reasonably practicable after such reports are filed with the Securities and Exchange Commission ("SEC"). We also post all financial press releases, including earnings releases, to our website. All other reports filed or furnished to the SEC on the SEC’s website, www.sec.gov, including current reports on Form 8-K, are available via direct link on our website. Reference to our and the SEC’s websites herein do not incorporate by reference any information contained on those websites and such information should not be considered part of this Form 10-K.

11

Table of Contents

ITEM 1A. RISK FACTORS
As a global manufacturer, marketer and distributor of high performance coatings systems, we operate in a business environment that includes risks. These risks are not unlike the risks we have faced in the recent past nor are they unlike risks faced by our competitors. If any of the events contemplated by the following discussion of risks should occur, our business, results of operations, financial condition and cash flows could suffer significantly. While the factors listed here are considered to be the more significant factors, they should not be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles which may adversely affect our businesses and our results of operations.
Risks Related to our Business
Risks Related to Execution of our Strategic and Operating Plans
Our financial position, results of operations and cash flows could be materially adversely affected by difficult economic conditions, and/or significant volatility in the capital, credit and commodities markets.
Several of the end-markets we serve are cyclical, and macroeconomic and other factors beyond our control could reduce demand from these end-markets for our products, materially adversely affecting our business, financial condition and results of operations. Weak economic conditions could depress new car sales and/or production, reducing demand for our light vehicle OEM coatings and limit the growth of the car parc. These factors could, in turn, cause a related decline in demand for our automotive refinish coatings because, as the age of a vehicle increases, the propensity of car owners to pay for cosmetic repairs generally decreases. Also, during difficult economic times, car owners may refrain from seeking repairs for their damaged vehicles. Similarly, periods of reduced global economic activity could hinder global industrial output, which could decrease demand for our industrial and commercial coating products.
Our global business is adversely affected by decreases in the general level of economic activity, such as decreases in business and consumer spending, construction activity and industrial manufacturing. Disruptions in the United States, Europe or other economies, or weakening of emerging markets, such as Brazil or China, could adversely affect our sales, profitability and/or liquidity.
Further, a tightening of credit in financial markets could adversely affect the ability of our customers and suppliers to obtain financing for significant purchases and operations, could result in a decrease in or cancellation of orders for our products and services and could impact the ability of our customers to make payments owed to us. Similarly, a tightening of credit in financial markets could adversely affect our supplier base and increase the potential for one or more of our suppliers to experience financial distress or bankruptcy.
We may be unable to successfully execute on our growth initiatives, business strategies or operating plans.
We are executing on a number of growth initiatives, strategies and operating plans designed to enhance our business. For example, we are undertaking certain operational improvement initiatives with respect to realigning our manufacturing facilities in multiple regions. In 2018, we announced the closing of our Mechelen, Belgium manufacturing facility as part of our restructuring initiative. We anticipate completion of the restructuring and closure activities during the second half of 2020 and will continue this realignment in the coming years. We are also growing our sales force in emerging markets and end-markets where we are underrepresented. The anticipated benefits from these efforts are based on several assumptions that may prove to be inaccurate. A variety of risks could cause us not to realize some or all of the expected benefits. These risks include, among others, delays in the anticipated timing of activities related to such growth initiatives, strategies and operating plans; increased difficulty and cost in implementing these efforts; and the incurrence of other unexpected costs associated with operating the business. Further, our continued implementation of these programs may disrupt our operations and performance. As a result, we cannot assure you that we will realize these benefits. If, for any reason, the benefits we realize are less than our estimates or the implementation of these growth initiatives, strategies and operating plans adversely affect our operations or cost more or take longer to effectuate than we expect, or if our assumptions prove inaccurate, our results of operations may be materially adversely affected.
Increased competition may adversely affect our business, financial condition and results of operations.
We face substantial competition from many international, national, regional and local competitors of various sizes in the manufacturing, distribution and sale of our coatings and related products. Some of our competitors are larger than us and have greater financial resources than we do. Other competitors are smaller and may be able to offer more specialized products. We believe that technology, product quality, product innovation, breadth of product line, technical expertise, distribution, service, local presence and price are the key competitive factors for our business. Competition in any of these areas may reduce our net sales and adversely affect our earnings or cash flow by resulting in decreased sales volumes, reduced prices and increased costs of manufacturing, distributing and selling our products.

12

Table of Contents

Improved safety features on vehicles, insurance company influence, the introduction of new business models or new methods of travel, and weather conditions may reduce the demand for some of our products and could have a negative effect on our business, financial condition and results of operations.
Vehicle manufacturers continue to develop new safety features such as collision avoidance technology and self-driving vehicles that may reduce vehicle collisions in the future, potentially negatively impacting demand for our refinish coatings. Insurance companies may influence vehicle owners to use body shops that do not use our products, which could also potentially negatively impact demand for our refinish coatings. In addition, through the introduction of new technologies, new business models or new methods of travel, such as ridesharing, the number of automotive OEM new-builds may decline, potentially reducing demand for our automotive OEM coatings. Furthermore, from time to time, weather conditions have an adverse effect on our sales of coatings and related products. For example, unusually mild weather during winter months may lead to fewer vehicle collisions, reducing market demand for our refinish coatings. Any resulting reduction in demand for our refinish coatings could have a material adverse effect on our business, financial condition and results of operations.
The loss of or reduced purchases by any of our largest customers, or the consolidation of MSOs, distributors and/or body shops, could adversely affect our business, financial condition and results of operations.
We have some customers that purchase a large amount of products from us and we are also reliant on distributors to assist us in selling our products. Our largest single customer accounted for approximately 6.3% of our 2018 net sales and our largest distributor accounted for approximately 4.0% of our 2018 net sales. Consolidation of any of our customers, including MSOs, distributors and body shops, could decrease our customer base and impact our results of operations if the resulting business seeks different sales terms or chooses to use one of our competitors for the consolidated business. The loss of any of our large customers or significant changes in their level of purchases, as a result of changes in business conditions, working capital levels, product requirements, consolidation or otherwise, could have a material adverse effect on our business, financial condition and results of operations.
We rely on our distributor network and third-party delivery services for the distribution and export of certain of our products. A significant disruption in these services or significant increases in prices for those services may disrupt our ability to export material or increase our costs.
We ship a significant portion of our products to our customers through our distributor network as well as independent third-party delivery companies. If any of our key distributors or third-party delivery providers experiences a significant disruption such that our products cannot be delivered in a timely fashion or such that we incur additional shipping costs that we could not pass on to our customers, our costs may increase and our relationships with certain of our customers may be adversely affected. In addition, if our distributors or third-party delivery providers increase prices and we are not able to pass along these increases to customers, find comparable alternatives or adjust our delivery network, our business, financial condition and results of operations could be adversely affected.
We take on credit risk exposure from our customers in the ordinary course of our business.
We routinely offer customers pre-bates, loans and other financial incentives to purchase our products. These arrangements generally obligate the customer to purchase products from us and/or repay us for products over time. In the event that a customer is unwilling or unable to fulfill its obligations under these arrangements, we may incur a financial loss. In addition, in the ordinary course of our business, we guarantee certain of our customers’ obligations to third parties. Any default by our customers on their obligations could force us to make payments to the applicable creditor. It is possible that customer defaults on obligations owed to us and on third-party obligations that we have guaranteed could be significant, which could have a material adverse effect on our business, financial condition and results of operations.
Price increases, business interruptions or declines in the supply of raw materials could have a significant impact on our ability to grow or sustain earnings.
Our manufacturing processes consume significant amounts of raw materials, the costs of which are subject to worldwide supply and demand as well as other factors beyond our control. We use a significant amount of raw materials derived from crude oil and natural gas. As a result, volatile oil and gas prices can cause significant variations in our raw materials costs, affecting our operating results. In rising raw material price environments, we may be unable to pass along these increased costs to our customers. In declining raw material price environments, customers may seek price concessions from us greater than any raw material cost savings we realize. If we are not able to fully offset the effects of higher raw materials costs, or if customers demand greater raw material price concessions than we obtain in low raw material cost environments, our financial results could deteriorate. In addition to the risks associated with raw materials prices, supplier capacity constraints, supplier production disruptions, including supply disruptions, increasing costs for energy, or the unavailability of certain raw materials could result in harm to our manufacturing capabilities or supply imbalances that may have a material adverse effect on our business, financial condition and results of operations.

13

Table of Contents

Failure to develop and market new products and manage product life cycles could impact our competitive position and have a material adverse effect on our business, financial condition and results of operations.
Our operating results are largely dependent on our development and management of our portfolio of current, new and developing products and services as well as our ability to bring those products and services to market. We plan to grow our business by focusing on developing and marketing our solutions to meet increasing demand for productivity. Our ability to execute this strategy and our other growth plans successfully could be adversely affected by difficulties or delays in product development, such as the inability to identify viable new products, successfully complete research and development, obtain relevant regulatory approvals, effectively manage our manufacturing process or costs, obtain intellectual property protection, or gain market acceptance of new products and services. Because of the lengthy and costly development process, technological challenges and intense competition, we cannot assure you that any of the products we are currently developing, or that we may develop in the future, will achieve substantial commercial success. For example, in addition to developing technologically advanced products, commercial success of those products will depend on customer acceptance and implementation of those products. A failure to develop commercially successful products or to develop additional uses for existing products could materially adversely affect our business, financial results or results of operations. Further, sales of our new products could replace sales of some of our current products, offsetting the benefit of even a successful product introduction.
Our information technology systems are subject to security risks.
We rely on information technology systems to conduct business. Information security risks have generally increased in recent years because of the proliferation of new technologies and the increased sophistication and activities of cyber attackers. In addition, by utilizing third parties to perform certain business and administrative functions, we may be exposed to greater risk of data security breaches. Our information technology systems may be susceptible to damage, disruptions or shutdowns due to power outages, hardware failures, computer viruses, attacks by computer hackers, telecommunication failures, user errors, catastrophes or other unforeseen events. Any such event relating to our systems (or the systems of third parties that we rely on), could result in theft, misuse, modification or destruction of information, including trade secrets and confidential business information, and cause business disruptions, reputational damage and third-party claims, any of which could have a material adverse effect on our business, financial condition or results of operations. Since the techniques used to obtain unauthorized access to systems or to otherwise sabotage them, change frequently and are often not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. While we have designed and implemented controls to restrict access to our data and information technology infrastructure, it is still vulnerable to unauthorized access through cyber attacks, theft and other security breaches. These types of attacks have been attempted against our systems from time to time, with no material adverse impacts to date, and our protective measures may not be adequate to ensure that our operations will not be disrupted, should another such event occur in the future. Although we continually seek to improve our countermeasures to prevent such events, we may be unable to anticipate every scenario and it is possible that certain cyber threats or vulnerabilities will be undetected or unmitigated in time to prevent an attack on us and our customers.
Our ability to conduct our business might be negatively impacted if we experience difficulties with outsourcing and similar third-party relationships.
We outsource certain business and administrative functions and rely on third parties to perform certain services on our behalf. We may do so increasingly in the future. If we fail to develop and implement our outsourcing strategies, such strategies prove to be ineffective or fail to provide expected cost savings, or our third-party providers fail to perform as anticipated, we may experience operational difficulties, increased costs, reputational damage and a loss of business that may have a material adverse effect on our business, financial condition and results of operations.

14

Table of Contents

Risks Related to our Global Operations
As a global business, we are subject to risks associated with our non-U.S. operations that are not present in the United States.
We conduct our business on a global basis, with approximately 66% of our 2018 net sales occurring outside the United States. We anticipate that international sales will continue to represent a substantial portion of our net sales and that our strategy for continued growth and profitability will entail further international expansion, particularly in emerging markets. Changes in local and regional economic conditions could affect product demand in our non-U.S. operations. Specifically, our financial results could be affected by changes in trade, monetary and fiscal policies, laws and regulations, or other activities of U.S. and non-U.S. governments, agencies and similar organizations. These conditions include, but are not limited to, changes in a country’s or region’s social, economic or political conditions, trade regulations affecting production, pricing and marketing of products, local labor conditions and regulations, reduced protection of intellectual property rights in some countries, changes in the regulatory or legal environment, restrictions on currency exchange activities, burdensome taxes and tariffs and other trade barriers, as well as the imposition of economic or other trade sanctions, each of which could impact our ability to do business in certain jurisdictions or with certain persons. For example, the U.S. government has taken actions or made proposals that are intended to address trade imbalances, specifically with China, among other countries, which include encouraging increased production in the United States. These actions and proposals have resulted or could result in increased customs duties and the renegotiation of some U.S. trade agreements. In addition, it is not known how the withdrawal by the United States from the Trans-Pacific Partnership trade agreement may also affect our business. As another example, new legislation known as the Worldwide Harmonized Light Vehicle Testing Procedure ("WLTP"), which requires all vehicles sold in Europe to comply with new fuel economy testing and carbon emissions standards, has and may continue to impact light vehicle production in Europe, which could result in reduced net sales and profitability. Our international operations also present risks associated with terrorism, political hostilities, war and other civil disturbances, the occurrence of which could lead to reduced net sales and profitability. Our international sales and operations are also sensitive to changes in foreign national priorities, including government budgets.
Our day-to-day operations outside the United States are subject to cultural and language barriers and the need to adopt different business practices in different geographic areas. In addition, we are required to create compensation programs, employment policies and other administrative programs that comply with the laws of multiple countries. We also must communicate and monitor standards and directives across our global operations. Our failure to successfully manage our geographically diverse operations could impair our ability to react quickly to changing business and market conditions and to enforce compliance with non-U.S. standards and procedures.
Any payment of distributions, loans or advances to and from our subsidiaries could be subject to restrictions on or taxation of, dividends or repatriation of earnings under applicable local law, monetary transfer restrictions, foreign currency exchange regulations in the jurisdictions in which our subsidiaries operate or other restrictions imposed by current or future agreements, including debt instruments, to which our non-U.S. subsidiaries may be a party. In particular, our operations in Brazil, China and India where we maintain local currency cash balances are subject to import authorization or pricing controls.
Currency risk may adversely affect our financial condition and cash flows.
We derive a significant portion of our net sales from outside the United States and conduct our business and incur costs in the local currency of most countries in which we operate. Because our financial statements are presented in U.S. dollars, we must translate our financial results as well as assets and liabilities into U.S. dollars for financial statement reporting purposes at exchange rates in effect during or at the end of each reporting period, as applicable. Therefore, increases or decreases in the value of the U.S. dollar against other currencies in countries where we operate will affect our results of operations and the value of balance sheet items denominated in foreign currencies. In particular, we are exposed to the Euro, the Brazilian real, the Chinese yuan, the British pound, the Australian dollar and the Russian ruble. For example, unfavorable movement in the Euro negatively impacted our results of operations in prior periods and future declines of the Euro could affect future periods. Furthermore, many of our local businesses import or buy raw materials in a currency other than their functional currency, which can impact the operating results for these operations if we are unable to mitigate the impact of the currency exchange fluctuations. We cannot accurately predict the effects of exchange rate fluctuations upon our future operating results because of the number of currencies involved, the variability of currency exposures and the potential volatility of currency exchange rates. Accordingly, fluctuations in foreign exchange rates may have an adverse effect on our financial condition and cash flows.

15

Table of Contents

Terrorist acts, conflicts, wars and natural disasters may materially adversely affect our business, financial condition and results of operations.
As a multinational company with a large international footprint, we are subject to increased risk of damage or disruption to us, our employees, facilities, partners, suppliers, distributors, resellers or customers due to terrorist acts, conflicts, wars, adverse weather conditions, natural disasters, power outages, pandemics or other public health crises and environmental incidents, wherever located around the world. The potential for future terrorist attacks and natural disasters, the national and international responses to terrorist attacks and natural disasters or perceived threats to national security and other actual or potential conflicts or wars may create economic and political uncertainties. In addition, as a multinational company with headquarters and significant operations located in the United States, actions against or by the United States could result in a decrease in demand for our products, make it difficult or impossible to deliver products to our customers or to receive components from our suppliers, create delays and inefficiencies in our supply chain and pose risks to our employees, resulting in the need to impose travel restrictions. A catastrophic loss of the use of all or a portion of one of our key manufacturing facilities due to accident, labor issues, weather conditions, acts of war, political unrest, geopolitical risk, terrorist activity, natural disaster or otherwise, whether short- or long-term, and any interruption in production capability could require us to make substantial capital expenditures to remedy the situation, which could negatively affect our business, financial condition and results of operations.
The United Kingdom’s withdrawal from the European Union may have a negative effect on global economic conditions, financial markets and our business.
In June 2016, a majority of voters in the United Kingdom elected to withdraw from the European Union ("EU") in a national referendum (commonly referred to as "Brexit"). In March 2017, the UK government initiated the exit process under Article 50 of the Treaty of the European Union, commencing a period of up to two years for the United Kingdom and the other EU member states to negotiate the terms of the withdrawal. The British government and the European Union have now negotiated a withdrawal agreement, and the European Union has approved that agreement, but the British Parliament has not yet approved it. Brexit has created significant uncertainty about the future relationship between the United Kingdom and the European Union, including with respect to the laws and regulations that will apply as the United Kingdom determines which European Union laws to replace or replicate in the event of a withdrawal. Failure to obtain parliamentary approval of the negotiated withdrawal agreement would mean that the United Kingdom would leave the European Union on March 29, 2019, potentially with no agreement (a so-called "hard Brexit"). We have substantial R&D and manufacturing operations in Europe and a significant portion of our business involves cross border transactions throughout the region. The consequences for the economies of the European Union members and of the United Kingdom exiting the European Union are unknown and unpredictable, especially in the case of a hard Brexit. Depending on the final terms of Brexit, we could face new regulatory costs and challenges and greater volatility in the Pound Sterling and the Euro. Any adjustments we make to our business and operations as a result of Brexit could result in significant time and expense to complete. In addition, these developments, or the perception that any of them could occur, have caused and may continue to cause significant volatility in the global financial markets as well as business conditions in Europe and beyond. This volatility may significantly reduce global market liquidity and restrict the ability of key market participants to operate in certain financial markets. Any of these factors could depress economic activity and restrict our access to capital, which could have a material adverse effect on our business, financial condition and results of operations and reduce the price of our common shares.

16

Table of Contents

Risks Related to Legal and Regulatory Compliance and Litigation
Our failure to comply with the anti-corruption laws of the United States and various international jurisdictions could negatively impact our reputation and results of operations.
Doing business on a global basis requires us to comply with the laws and regulations of the U.S. government and those of various international and sub-national jurisdictions, and our failure to successfully comply with these rules and regulations may expose us to liabilities. These laws and regulations apply to companies, individual directors, officers, employees and agents, and may restrict our operations, trade practices, investment decisions and partnering activities. In particular, our international operations are subject to U.S. and foreign anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act (the "FCPA"), the United Kingdom Bribery Act 2010 (the "Bribery Act") as well as anti-corruption laws of the various jurisdictions in which we operate. The FCPA, the Bribery Act and other laws prohibit us and our officers, directors, employees and agents acting on our behalf from corruptly offering, promising, authorizing or providing anything of value to foreign officials for the purposes of influencing official decisions or obtaining or retaining business or otherwise obtaining favorable treatment. As part of our business, we deal with state-owned business enterprises, the employees and representatives of which may be considered foreign officials for purposes of the FCPA or the Bribery Act. We are subject to the jurisdiction of various governments and regulatory agencies outside of the United States, which may bring our personnel into contact with foreign officials responsible for issuing or renewing permits, licenses or approvals or for enforcing other governmental regulations. In addition, some of the international locations in which we operate lack a developed legal system and have elevated levels of corruption. Our global operations expose us to the risk of violating, or being accused of violating, the foregoing or other anti-corruption laws. Such violations could be punishable by criminal fines, imprisonment, civil penalties, disgorgement of profits, injunctions and exclusion from government contracts, as well as other remedial measures. Investigations of alleged violations can be very expensive, disruptive and damaging to our reputation. Although we have implemented anti-corruption policies and procedures and introduced training since becoming an independent company, there can be no guarantee that these policies, procedures and training will effectively prevent violations by our employees or representatives in the future. Additionally, we face a risk that our distributors and other business partners may violate the FCPA, the Bribery Act or similar laws or regulations. Such violations could expose us to FCPA and Bribery Act liability and/or our reputation may potentially be harmed by their violations and resulting sanctions and fines.
Our international operations require us to comply with anti-terrorism laws and regulations and applicable trade embargoes.
We are subject to trade and economic sanctions laws and other restrictions on international trade. The U.S. and other governments and their agencies impose sanctions and embargoes on certain countries, their governments and designated parties. In the United States, the economic and trade sanctions programs are principally administered and enforced by the U.S. Treasury Department’s Office of Foreign Assets Control. If we fail to comply with these laws, we could be subject to civil or criminal penalties, other remedial measures and legal expenses, which could adversely affect our business, financial condition and results of operations. Although we have implemented trade-related policies and procedures and introduced training since becoming an independent company, we cannot assure you that such policies, procedures and training will effectively prevent violations in the future, particularly as the scope of certain laws may be unclear and may be subject to changing interpretations.
We cannot predict the nature, scope or effect of future regulatory requirements to which our international sales and manufacturing operations might be subject or the manner in which existing laws might be administered or interpreted. Future regulations could limit the countries in which some of our products may be manufactured or sold, or could restrict our access to, or increase the cost of obtaining, products from foreign sources. The occurrence of any of the foregoing could have a material adverse effect on our business, financial condition and results of operations.
We are subject to complex and evolving data privacy laws.
Our business is subject to complex and evolving U.S. and foreign laws and regulations regarding privacy, data protection and other matters. We could be liable for loss or misuse of our customers’ personal information and/or our employee’s personally-identifiable information if we fail to prevent or mitigate such misuse or breach. Although we have developed systems and processes that are designed to protect customer and employee information and prevent misuse of such information and other security breaches, failure to prevent or mitigate such misuse or breaches may affect our reputation and operating results negatively and may require significant management time and attention.

17

Table of Contents

As a result of our current and past operations and/or products, including operations and/or products related to our businesses prior to the Acquisition, we could incur significant environmental liabilities and costs.
We are subject to various laws and regulations around the world governing the protection of the environment and health and safety, including the discharge of pollutants to air and water and the management and disposal of hazardous substances. These laws and regulations not only govern our current operations and products, but also impose potential liability on us for our or our predecessors’ past operations. We could incur fines, penalties and other sanctions as a result of violations of such laws and regulations. In addition, as a result of our operations and/or products, including our past operations and/or products related to our businesses prior to the Acquisition, we could incur substantial costs, including costs relating to remediation and restoration activities and third-party claims for property damage or personal injury. The ultimate costs under environmental laws and the timing of these costs are difficult to accurately predict. Our accruals for costs and liabilities at sites where contamination is being investigated or remediated may not be adequate because the estimates on which the accruals are based depend on a number of factors including the nature of the matter, the complexity of the site, site geology, the nature and extent of contamination, the type of remedy, the outcome of discussions with regulatory agencies and, at multi-party sites, other Potentially Responsible Parties ("PRPs") and the number and financial viability of other PRPs. Additional contamination may also be identified, and/or additional cleanup obligations may be incurred, at these or other sites in the future. For example, periodic monitoring or investigation activities are ongoing at a number of our sites where contaminants have been detected or are suspected, and we may incur additional costs if more active or extensive remediation is required. In addition, in connection with the Acquisition, DuPont has, subject to certain exceptions and exclusions, agreed to indemnify us for certain liabilities relating to environmental remediation obligations and certain claims relating to the exposure to hazardous substances and products manufactured prior to our separation from DuPont. We could incur material additional costs if DuPont fails to meet its obligations, if the indemnification proves insufficient or if we otherwise are unable to recover costs associated with such liabilities. The costs of our current operations complying with complex environmental laws and regulations, as well as internal voluntary programs, are significant and will continue to be so for the foreseeable future as environmental regulations become more stringent. These laws and regulations also change frequently, and we may incur additional costs complying with stricter environmental requirements that are promulgated in the future. Concerns over global climate change as well as more frequent and severe weather events have also promoted a number of legal and regulatory measures as well as social initiatives intended to reduce greenhouse gas and other carbon emissions. We cannot predict the impact that changing climate conditions or more frequent and severe weather events, if any, will have on our business, results of operations or financial condition. Moreover, we cannot predict how legal, regulatory and social responses to concerns about global climate change will impact our business.
As a producer of coatings, we transport certain materials that are inherently hazardous due to their toxic nature.
In our business, we handle and transport hazardous materials. If mishandled or released into the environment, these materials could cause substantial property damage or personal injuries resulting in significant legal claims against us. In addition, evolving regulations concerning the handling and transportation of certain materials could result in increased future capital or operating costs.
Our results of operations could be adversely affected by litigation.
We face risks arising from various litigation matters that have been asserted against us or that may be asserted against us in the future, including, but not limited to, claims for product liability, patent and trademark infringement, antitrust, warranty, contract and third-party property damage or personal injury. For instance, we have noted a nationwide trend in purported class actions against chemical manufacturers generally seeking relief such as medical monitoring, property damages, off-site remediation and punitive damages arising from alleged environmental torts without claiming present personal injuries. We have also noted a trend in public and private nuisance suits being filed on behalf of states, counties, cities and utilities alleging harm to the general public. In addition, various factors or developments can lead to changes in current estimates of liabilities such as a final adverse judgment, significant settlement or changes in applicable law. A future adverse ruling or unfavorable development could result in future charges that could have a material adverse effect on us. An adverse outcome in any one or more of these matters could be material to our business, financial condition and results of operations. In particular, product liability claims, regardless of their merits, could be costly, divert management’s attention and adversely affect our reputation and demand for our products.
Risks Related to Human Resources
We may not be able to recruit and retain the experienced and skilled personnel we need to compete.
Our future success depends on our ability to attract, retain, develop and motivate highly skilled personnel. We must have talented personnel to succeed and competition for senior management in our industry is intense. Our ability to meet our performance goals depends upon the personal efforts and abilities of the principal members of our senior management who provide strategic direction, develop our business, manage our operations and maintain a cohesive and stable work environment. We cannot assure you that we will retain or successfully recruit senior executives, or that their services will remain available to us.

18

Table of Contents

We rely on qualified managers and skilled employees, such as scientists, with technical and manufacturing industry experience in order to operate our business successfully. From time to time, there may be a shortage of skilled labor, which may make it more difficult and expensive for us to attract and retain qualified employees. If we are unable to attract and retain sufficient numbers of qualified individuals or our costs to do so increase significantly, our operations could be materially adversely affected.
In 2018 we appointed a new Chief Executive Officer and Chief Financial Officer. There are inherent risks and uncertainties related to the transition in leadership which may cause our business, strategy or results to materially differ.
If we are required to make unexpected payments to any pension plans applicable to our employees, our financial condition may be adversely affected.
We have defined benefit pension plans in which many of our current and former employees outside the United States participate or have participated. Many of these plans are underfunded or unfunded and the liabilities in relation to these plans will need to be satisfied as they mature from our operating reserves. In jurisdictions where the defined benefit pension plans are intended to be funded with assets in a trust or other funding vehicle, the liabilities exceed the corresponding assets in many of the plans. Various factors, such as changes in actuarial estimates and assumptions (including as to life expectancy, discount rates and rate of return on assets) as well as actual return on assets, can increase the expenses and liabilities of the defined benefit pension plans. The assets and liabilities of the plans must be valued from time to time under applicable funding rules and as a result we may be required to increase the cash payments we make in relation to these defined benefit pension plans.
Our financial condition and results of operations may be adversely affected to the extent that we are required to make any additional payments to any relevant defined benefit pension plans in excess of the amounts assumed in our current projections and assumptions or report higher pension plan expenses under relevant accounting rules.
We are subject to work stoppages, union negotiations, labor disputes and other matters associated with our labor force, which may adversely impact our operations and cause us to incur incremental costs.
Many of our employees globally are in unions or otherwise covered by labor agreements, including works councils. As of December 31, 2018, less than 0.1% of our U.S. workforce was unionized and approximately 50% of our workforce outside the United States was unionized or otherwise covered by labor agreements. Consequently, we may be subject to potential union campaigns, work stoppages, union negotiations and other potential labor disputes. Additionally, negotiations with unions or works councils in connection with existing labor agreements may result in significant increases in our cost of labor, divert management’s attention away from operating our business or break down and result in the disruption of our operations. The occurrence of any of the preceding outcomes could impair our ability to manufacture our products and result in increased costs and/or decreased operating results. Further, we may be impacted by work stoppages at our suppliers or customers that are beyond our control.
Risks Related to Intellectual Property
Our inability to protect and enforce our intellectual property rights could adversely affect our financial results.
Intellectual property rights both in the United States and in foreign countries, including patents, trade secrets, confidential information, trademarks and trade names, are important to our business and will be critical to our ability to grow and succeed in the future. We make strategic decisions on whether to apply for intellectual property protection and what kind of protection to pursue based on a cost benefit analysis. While we endeavor to protect our intellectual property rights in certain jurisdictions in which our products are produced or used and in jurisdictions into which our products are imported, the decision to file for intellectual property protection is made on a case-by-case basis. Because of the differences in foreign trademark, patent and other laws concerning proprietary rights, our intellectual property rights may not receive the same degree of protection in foreign countries as they would in the United States. Our failure to obtain or maintain adequate protection of our intellectual property rights for any reason could have a material adverse effect on our business, financial condition and results of operations.
We have applied for patent protection relating to certain existing and proposed products, processes and services in certain jurisdictions. While we generally consider applying for patents in those countries where we intend to make, have made, use or sell patented products, we may not accurately assess all of the countries where patent protection will ultimately be desirable. If we fail to timely file a patent application in any such country, we may be precluded from doing so at a later date. Furthermore, we cannot assure you that our pending patent applications will not be challenged by third parties or that such applications will eventually be issued by the applicable patent offices as patents. We also cannot assure you that the patents issued as a result of our foreign patent applications will have the same scope of coverage as our U.S. patents. It is possible that only a limited number of the pending patent applications will result in issued patents, which may have a materially adverse effect on our business and results of operations.

19

Table of Contents

The patents we own could be challenged, invalidated or circumvented by others and may not be of sufficient scope or strength to provide us with any meaningful protection or commercial advantage. Furthermore, our existing patents are subject to challenges from third parties that may result in invalidations and will all eventually expire, after which we will not be able to prevent our competitors from using our previously patented technologies, which could materially adversely affect our competitive advantage stemming from those products and technologies. We also cannot assure you that competitors will not infringe our patents, or that we will have adequate resources to enforce our patents.
We also rely on unpatented proprietary technology. It is possible that others will independently develop the same or similar technology or otherwise obtain access to our unpatented technology. To protect our trade secrets and other proprietary information, we require certain employees, consultants, advisors and collaborators to enter into confidentiality agreements as we deem appropriate. We cannot assure you that we will be able to enter into these confidentiality agreements or that these agreements will provide meaningful protection for our trade secrets, know-how or other proprietary information in the event of any unauthorized use, misappropriation or disclosure of such trade secrets, know-how or other proprietary information. If we are unable to maintain the proprietary nature of our technologies, we could be materially adversely affected.
We rely on our trademarks, trade names and brand names to distinguish our products from the products of our competitors and have registered or applied to register many of these trademarks. We cannot assure you that our trademark applications will be approved. Third parties may also oppose our trademark applications, or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced to rebrand our products, which could result in loss of brand recognition, and could require us to devote resources to advertising and marketing new brands. Further, we cannot assure you that competitors will not infringe our trademarks, or that we will have adequate resources to enforce our trademarks. We also license third parties to use our trademarks. In an effort to preserve our trademark rights, we enter into license agreements with these third parties that govern the use of our trademarks and contain limitations on their use. Although we make efforts to police the use of our trademarks by our licensees, we cannot assure you that these efforts will be sufficient to ensure that our licensees abide by the terms of their licenses. In the event that our licensees fail to do so, our trademark rights could be diluted.
If we are sued for infringing intellectual property rights of third parties, it may be costly and time consuming, and an unfavorable outcome in any litigation could harm our business.
We cannot assure you that our activities will not, unintentionally or otherwise, infringe on the patents, trademarks or other intellectual property rights owned by others. We may spend significant time and effort and incur significant litigation costs if we are required to defend ourselves against intellectual property rights claims brought against us, regardless of whether the claims have merit. If we are found to have infringed on the patents, trademarks or other intellectual property rights of others, we may be subject to substantial claims for damages, which could materially impact our cash flow, business, financial condition and results of operations. We may also be required to cease development, use or sale of the relevant products or processes, or we may be required to obtain a license on the disputed rights, which may not be available on commercially reasonable terms, if at all.
Risks Related to Other Aspects of our Business
We may continue to engage in acquisitions and divestitures, and may encounter difficulties integrating acquired businesses with, or disposing of divested businesses from, our current operations and, as a result, we may not realize the anticipated benefits of these acquisitions and divestitures.
We may continue to seek to grow through strategic acquisitions, joint ventures or other arrangements. Our due diligence reviews in these transactions may not identify all of the material issues necessary to accurately estimate the cost or potential loss contingencies with respect to a particular transaction, including potential exposure to regulatory sanctions resulting from a counterparty’s previous activities. We may incur unanticipated costs or expenses, including post-closing asset impairment charges, expenses associated with eliminating duplicate facilities, litigation and other liabilities. We may also face regulatory scrutiny as a result of perceived concentration in certain markets, which could cause additional delay or prevent us from completing certain acquisitions that would be beneficial to our business. We may also encounter difficulties in integrating acquisitions with our operations, applying our internal controls processes to these acquisitions or in managing strategic investments. Additionally, we may not achieve the benefits we anticipate when we first enter into a transaction in the amount or on the timeframe anticipated. Any of the foregoing could adversely affect our business and results of operations. In addition, accounting requirements relating to business combinations, including the requirement to expense certain acquisition costs as incurred, may cause us to experience greater earnings volatility and generally lower earnings during periods in which we acquire new businesses. Furthermore, we may make strategic divestitures from time to time. These divestitures may result in continued financial involvement in the divested businesses, such as through indemnities, guarantees or other financial arrangements. These arrangements could result in financial obligations imposed upon us and could affect our future financial condition and results of operations. Acquisitions and divestitures may also require us to devote significant internal resources and could divert management's attention away from operating our business.

20

Table of Contents

Our joint ventures may not operate according to our business strategy if our joint venture partners fail to fulfill their obligations.
As part of our business, we have entered into certain joint venture arrangements, and may enter into additional joint venture arrangements in the future. The nature of a joint venture requires us to share control over significant decisions with unaffiliated third parties. Since we may not exercise control over our current or future joint ventures, we may not be able to require our joint ventures to take actions that we believe are necessary to implement our business strategy. Additionally, differences in views among joint venture participants may result in delayed decisions or failures to agree on major issues. If these differences cause the joint ventures to deviate from our business strategy, our results of operations could be materially adversely affected.
The insurance we maintain may not fully cover all potential exposures.
Our product liability, property, business interruption and casualty insurance coverages may not cover all risks associated with the operation of our business and may not be sufficient to offset the costs of any losses, lost sales or increased costs experienced during business interruptions. For some risks, we may elect not to obtain insurance. As a result of market conditions, premiums and deductibles for certain insurance policies can increase substantially and, in some instances, certain insurance policies may become unavailable or available only for reduced amounts of coverage. As a result, we may not be able to renew our insurance policies or procure other desirable insurance on commercially reasonable terms, if at all. Losses and liabilities from uninsured or underinsured events and delay in the payment of insurance proceeds could have a material adverse effect on our business, financial condition and results of operations.
DuPont’s potential breach of its obligations in connection with the Acquisition, including failure to comply with its indemnification obligations, may materially affect our business and operating results.
Although the Acquisition closed on February 1, 2013, DuPont still has performance obligations to us, including fulfilling indemnification requirements. We could incur material additional costs if DuPont fails to meet its obligations or if we otherwise are unable to recover costs associated with such liabilities.
We may be subject to changes in our tax rates and the adoption of tax legislation or exposure to additional tax liabilities that may adversely affect our results of operations.
We are subject to taxes in the U.S. and non-U.S. jurisdictions where our subsidiaries are organized. Due to economic and political conditions, tax rates in various jurisdictions may be subject to significant change. Our future effective tax rates could be affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, changes in available tax credits or tax deductions and changes in tax laws or their interpretation, such as interpretations as to the legality of tax advantages granted under the EU state aid rules. Additionally, we and our subsidiaries are engaged in a number of intercompany transactions across multiple tax jurisdictions. Although we believe we have clearly reflected the economics of these transactions and the proper local transfer pricing documentation is in place, tax authorities may propose and sustain adjustments that could result in changes that may impact our mix of earnings in countries with differing statutory tax rates. Our tax returns and other tax matters are subject to examination by local tax authorities and governmental bodies. We regularly assess the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of our provision for taxes. There can be no assurance as to the outcome of these examinations. If our effective tax rates were to increase, or if the ultimate determination of the taxes owed by us is for an amount in excess of amounts previously accrued, our operating results, cash flows and financial condition could be adversely affected.
On December 22, 2017, the U.S. Tax Cuts and Jobs Act ("U.S. TCJA") legislation was enacted into law, which significantly revised the U.S. Internal Revenue Code of 1986 ("the Code"), as amended. While our current tax accounting is complete based on legislative updates relating to the U.S. TCJA currently, further interpretive guidance of the U.S TCJA's provisions could result in further adjustments that could have an impact on our future results of operations, cash flows or financial positions. In addition, it is uncertain if and to what extent various states and localities will conform to the U.S. TCJA.

21

Table of Contents

If we are treated as a financial institution under FATCA, withholding tax may be imposed on payments on our common shares.
Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and applicable Treasury Regulations commonly referred to as “FATCA” may impose 30% withholding on “foreign passthru payments” made by a “foreign financial institution” (as defined in the Code) that has entered into an agreement with the U.S. Internal Revenue Service to perform certain diligence and reporting obligations with respect to the foreign financial institution’s U.S.-owned accounts. Such withholding on “foreign passthru payments” will apply from January 1, 2019 at the earliest. The applicable Treasury Regulations treat an entity as a “financial institution” if it is a holding company formed in connection with or availed of by a private equity fund or other similar investment vehicle established with an investment strategy of investing, reinvesting or trading in financial assets. The term “foreign passthru payment” is currently not defined. The United States has entered into an intergovernmental agreement (an “IGA”) with Bermuda, which modifies the FATCA withholding regime described above. It is not clear whether we would be treated as a financial institution subject to the diligence, reporting and withholding obligations under FATCA or the Bermuda IGA. Furthermore, it is not yet clear how the Bermuda IGA will address foreign passthru payments. Prospective investors should consult their tax advisors regarding the potential impact of FATCA, the Bermuda IGA and any non-U.S. legislation implementing FATCA, on their investment in our common shares.
We may be classified as a passive foreign investment company, which could result in adverse U.S. federal income tax consequences to U.S. holders of our common shares.
Based on the market price of our common shares and the composition of our income, assets and operations, we do not expect to be treated as a passive foreign investment company ("PFIC") for U.S. federal income tax purposes for the current taxable year or in the foreseeable future. However, the application of the PFIC rules is subject to uncertainty in several respects, and we cannot assure you the U.S. Internal Revenue Service will not take a contrary position. Furthermore, this is a factual determination that must be made annually after the close of each taxable year. If we are a PFIC for any taxable year during which a U.S. person holds our common shares, certain adverse U.S. federal income tax consequences could apply to such U.S. person.
Risks Related to our Indebtedness
Our substantial indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy and our industry, expose us to interest rate risk to the extent of our variable rate debt and prevent us from meeting our obligations with respect to our indebtedness.
As of December 31, 2018, we had approximately $3.9 billion of indebtedness on a consolidated basis. As of December 31, 2018, we were in compliance with all of the covenants under our outstanding debt instruments.
Our substantial indebtedness could have important consequences to you. For example, it could:
limit our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions, general corporate purposes or other purposes;
require us to devote a substantial portion of our annual cash flow to the payment of interest on our indebtedness;
expose us to the risk of increased interest rates as, over the term of our debt, the interest cost on a significant portion of our indebtedness is subject to changes in interest rates;
hinder our ability to adjust rapidly to changing market conditions;
limit our ability to secure adequate bank financing in the future with reasonable terms and conditions or at all; and
increase our vulnerability to and limit our flexibility in planning for, or reacting to, a potential downturn in general economic conditions or in one or more of our businesses.
We are more leveraged than some of our competitors, which could adversely affect our business plans. A relatively greater portion of our cash flow is used to service debt and other financial obligations. This reduces the funds we have available for working capital, capital expenditures, acquisitions and other purposes and may make it more difficult for us to borrow in the future. Similarly, our relatively greater leverage increases our vulnerability to, and limits our flexibility in planning for, adverse economic and industry conditions and creates other competitive disadvantages compared with other companies with relatively less leverage.
In addition, the indentures governing the New Senior Notes and the agreements governing our Senior Secured Credit Facilities (as defined herein) contain affirmative and negative covenants that limit our and certain of our subsidiaries’ ability to engage in activities that may be in our long-term best interests. Our failure to comply with those covenants could result in an event of default that, if not cured or waived, could result in the acceleration of all of our debts.

22

Table of Contents

To service all of our indebtedness, we will require a significant amount of cash and our ability to generate cash depends on many factors beyond our control.
Our operations are conducted through our subsidiaries and our ability to make cash payments on our indebtedness will depend on the earnings and the distribution of funds from our subsidiaries. None of our subsidiaries, however, are obligated to make funds available to us for payment on our indebtedness. Our ability to make cash payments on and refinance our debt obligations, to fund planned capital expenditures and to meet other cash requirements will depend on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to financial, business, legislative, regulatory and other factors beyond our control. We might not be able to maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness.
Our business may not generate sufficient cash flow from operations and future borrowings may not be available under our Senior Secured Credit Facilities in an amount sufficient to enable us to pay our indebtedness, or to fund our other liquidity needs, including planned capital expenditures. In such circumstances, we may need to refinance all or a portion of our indebtedness on or before maturity. We may not be able to refinance any of our indebtedness on commercially reasonable terms or at all. If we cannot service our indebtedness, we may have to take actions such as selling assets, issuing additional equity or reducing or delaying capital expenditures, strategic acquisitions, investments and alliances. Such actions, if necessary, may not be effected on commercially reasonable terms or at all. The instruments governing our indebtedness restrict our ability to sell assets and our use of the proceeds from such sales, and we may not be able to consummate those dispositions or to obtain proceeds in an amount sufficient to meet any debt service obligations then due.
If we are unable to generate sufficient cash flow or are otherwise unable to obtain funds necessary to meet required payments of principal, premium, if any, and interest on our indebtedness, or if we otherwise fail to comply with the various covenants in the instruments governing our indebtedness, we could be in default under the terms of the agreements governing such indebtedness. In the event of such default, the holders of such indebtedness could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest, the lenders under our Revolving Credit Facility could elect to terminate their commitments thereunder, cease making further loans and institute foreclosure proceedings against our assets, and we could be forced into bankruptcy or liquidation. If our operating performance declines, we may in the future need to obtain waivers from the required lenders under the credit agreement governing our Senior Secured Credit Facilities or the indentures governing the New Senior Notes to avoid being in default. If we breach our covenants under our Senior Secured Credit Facilities or New Senior Notes or we are in default thereunder and seek a waiver, we may not be able to obtain a waiver from the required lenders. If this occurs, we would be in default under the credit agreement governing our Senior Secured Credit Facilities and our New Senior Notes, the lenders could exercise their rights, as described above, and we could be forced into bankruptcy or liquidation.
Despite our current level of indebtedness and restrictive covenants, we and our subsidiaries may incur additional indebtedness. This could further exacerbate the risks associated with our substantial financial leverage.
We and our subsidiaries may incur significant additional indebtedness under the agreements governing our indebtedness. Although the indentures governing the New Senior Notes and the credit agreement governing our Senior Secured Credit Facilities contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of thresholds, qualifications and exceptions, and the additional indebtedness incurred in compliance with these restrictions could be substantial. Additionally, these restrictions also will not prevent us from incurring obligations that, although preferential to our common shares in terms of payment, do not constitute indebtedness.
In addition, if new debt is added to our and/or our subsidiaries’ debt levels, the related risks that we now face as a result of our leverage would intensify. See Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Financial Condition."
We are dependent upon our lenders for financing to execute our business strategy and meet our liquidity needs. If our lenders are unable or unwilling to fund borrowings under their credit commitments or we are unable to borrow, it could negatively impact our business.
We are dependent upon our lenders for financing to execute our business strategy and meet our liquidity needs. If our lenders are unable to fund borrowings under their credit commitments or we are unable to borrow from them for any reason, our business could be negatively impacted. During periods of volatile credit markets, there is risk that any lenders, even those with strong balance sheets and sound lending practices, could fail or refuse to honor their legal commitments and obligations under existing credit commitments, including, but not limited to, extending credit up to the maximum permitted by a credit facility, allowing access to additional credit features and otherwise accessing capital and/or honoring loan commitments. If our lenders are unable or unwilling to fund borrowings under their revolving credit commitments or we are unable to borrow from them, it could be difficult in such environments to obtain sufficient liquidity to meet our operational needs.

23

Table of Contents

Our ability to obtain additional capital on commercially reasonable terms may be limited.
Although we believe our cash and cash equivalents, together with cash we expect to generate from operations and unused capacity available under our Revolving Credit Facility, provide adequate resources to fund ongoing operating requirements, we may need to seek additional financing to compete effectively.
If we are unable to obtain capital on commercially reasonable terms, it could:
reduce funds available to us for purposes such as working capital, capital expenditures, research and development, strategic acquisitions and other general corporate purposes;
restrict our ability to introduce new products or exploit business opportunities;
increase our vulnerability to economic downturns and competitive pressures in the markets in which we operate; and
place us at a competitive disadvantage.
Difficult and volatile conditions in the capital, credit and commodities markets and in the overall economy could have a material adverse effect on our financial position, results of operations and cash flows.
Difficult global economic conditions, including concerns about sovereign debt and significant volatility in the capital, credit and commodities markets, could have a material adverse effect on our financial position, results of operations and cash flows. These global economic factors, combined with low levels of business and consumer confidence and high levels of unemployment in certain parts of the world, have precipitated a slow recovery from the global recession and concern about a return to recessionary conditions. The difficult conditions in these markets and the overall economy affect our business in a number of ways. For example:
as a result of the volatility in commodity prices, we may encounter difficulty in achieving sustained market acceptance of past or future price increases, which could have a material adverse effect on our financial position, results of operations and cash flows;
under difficult market conditions there can be no assurance that borrowings under our Revolving Credit Facility would be available or sufficient, and in such a case, we may not be able to successfully obtain additional financing on reasonable terms, or at all;
in order to respond to market conditions, we may need to seek waivers from various provisions in the credit agreement governing our Senior Secured Credit Facilities or the indentures governing the New Senior Notes, and in such case, there can be no assurance that we can obtain such waivers at a reasonable cost, if at all;
market conditions could cause the counterparties to the derivative financial instruments we may use to hedge our exposure to interest rate, commodity or currency fluctuations to experience financial difficulties and, as a result, our efforts to hedge these exposures could prove unsuccessful and, furthermore, our ability to engage in additional hedging activities may decrease or become more costly; and
market conditions could result in our key customers experiencing financial difficulties and/or electing to limit spending, which in turn could result in decreased sales and earnings for us.
In general, downturns in economic conditions can cause fluctuations in demand for our and our customers’ products, product prices, volumes and margins. Future economic conditions may not be favorable to our industry and future growth in demand for our products, if any, may not be sufficient to alleviate any existing or future conditions of excess industry capacity. A decline in the demand for our products or a shift to lower-margin products due to deteriorating economic conditions could have a material adverse effect on our financial condition and results of operations and could also result in impairments of certain of our assets. We do not know if market conditions or the state of the overall economy will continue to improve in the near future. We cannot provide assurance that a continuation of current economic conditions or a further economic downturn in one or more of the geographic regions in which we sell our products would not have a material adverse effect on our business, financial condition and results of operations.
Our debt obligations may limit our flexibility in managing our business.
The indentures governing our New Senior Notes and the credit agreement governing our Senior Secured Credit Facilities require us to comply with a number of customary financial and other covenants, such as maintaining leverage ratios in certain situations and maintaining insurance coverage. See Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Financial Condition." These covenants may limit our flexibility in our operations, and breaches of these covenants could result in defaults under the instruments governing the applicable indebtedness even if we had satisfied our payment obligations. If we were to default on the indentures governing our New Senior Notes, the credit agreement governing our Senior Secured Credit Facilities or other debt instruments, our financial condition and liquidity would be adversely affected.

24

Table of Contents

We are subject to risks associated with the current interest rate environment and to the extent we use debt to fund our operations, changes in interest rates will affect our cost of debt.
LIBOR is the subject of recent proposals for reform. In July 2017, the head of the United Kingdom Financial Conduct Authority announced the desire to phase out the use of LIBOR by the end of 2021. There is currently no definitive information regarding the future utilization of LIBOR or of any particular replacement rate. As such, the potential effect of any such event on our cost of debt cannot yet be determined. LIBOR reforms may cause LIBOR to cease to exist, new methods of calculating LIBOR to be established or the establishment of an alternative reference rate(s). These consequences cannot be reliably predicted and any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the value of any LIBOR-linked instruments and other financial obligations or extensions of credit held by or due to us and could have a material adverse effect on our business, financial condition and results of operations.
 
Risks Related to Ownership of our Common Shares
Axalta Coating Systems Ltd. is a holding company with no operations of its own. Because our operations are conducted almost entirely through our subsidiaries and joint ventures, we are largely dependent on our receipt of distributions and dividends or other payments from our subsidiaries and joint ventures for cash to fund all of our operations and expenses, including to make future dividend payments, if any.
Our operations are conducted almost entirely through our subsidiaries and our ability to generate cash to meet our debt service obligations or to make future dividend payments, if any, is highly dependent on the earnings and the receipt of funds from our subsidiaries in the form of dividends, loans or advances and through repayment of loans or advances from us. Payments to us by our subsidiaries and joint ventures will be contingent upon our subsidiaries’ or joint ventures’ earnings and other business considerations and may be subject to statutory or contractual restrictions. In addition, there may be significant tax and other legal restrictions on the ability of foreign subsidiaries or joint ventures to remit money to us.
The price of our common shares may fluctuate significantly, and you could lose all or part of your investment.
Volatility in the market price of our common shares may prevent you from being able to sell your common shares at or above the price you paid for your common shares. The market price of our common shares could fluctuate significantly for various reasons, including:
our operating and financial performance and prospects;
our quarterly or annual earnings or those of other companies in our industry;
the public’s reaction to our press releases, our other public announcements and our filings with the SEC;
changes in, or failure to meet, earnings estimates or recommendations by research analysts who track our common shares or the stock of other companies in our industry;
the failure of research analysts to cover our common shares;
strategic actions by us, our customers or our competitors, such as acquisitions, divestitures, restructurings or site closures, including asset closures, or market rumors regarding such actions;
new laws or regulations or new interpretations of existing laws or regulations applicable to our business;
changes in accounting standards, policies, guidance, interpretations or principles;
the impact on our profitability temporarily caused by the time lag between when we experience cost increases until these increases flow through cost of sales because of our method of accounting for inventory, or the impact from our inability to pass on such price increases to our customers;
material litigations or government investigations;
changes in general conditions in the United States and global economies or financial markets, including those resulting from war, incidents of terrorism or responses to such events;
risks and uncertainties relating to the change in our leadership;
changes in key personnel;
sales of common shares by us or members of our management team;
the granting of restricted common shares, stock options and other equity awards;
volume of trading in our common shares; and
the realization of any risks described under this “Risk Factors” section.

25

Table of Contents

In addition, over the past several years, the stock markets have experienced significant price and volume fluctuations. This volatility has had a significant impact on the market price of securities issued by many companies, including companies in our industry. The changes frequently appear to occur without regard to the operating performance of the affected companies. Hence, the price of our common shares could fluctuate based upon factors that have little or nothing to do with our company, and these fluctuations could materially reduce our share price and cause you to lose all or part of your investment. Further, in the past, market fluctuations and price declines in a company’s stock have led to securities class action litigations. If such a suit were to arise, it could have a substantial cost and divert our resources regardless of the outcome.
If we fail to maintain proper and effective internal controls over financial reporting, our ability to produce accurate and timely financial statements could be impaired and investors’ views of us could be harmed.
The Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. One key aspect of the Sarbanes-Oxley Act is that we must perform system and process evaluation and testing of our internal control over financial reporting to allow management and our independent registered public accounting firm to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act, with auditor attestation of the effectiveness of our internal controls. If we are not able to comply with the requirements of Section 404 in a timely manner, or if we or our independent registered public accounting firm identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, the market price of our common shares could decline and we could be subject to sanctions or investigations by the New York Stock Exchange ("NYSE"), the SEC or other regulatory authorities, which would require additional financial and management resources.
Our ability to successfully implement our business plan and comply with the Sarbanes-Oxley Act requires us to be able to prepare timely and accurate financial statements, among other requirements. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems, procedures or controls, may cause our operations to suffer and we may be unable to conclude that our internal control over financial reporting is effective and to obtain an unqualified report on internal controls from our auditors. Moreover, we cannot be certain that these measures would ensure that we implement and maintain adequate controls over our financial processes and reporting in the future. Even if we were to conclude, and our independent registered public accounting firm were to concur, that our internal control over financial reporting provided reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), because of its inherent limitations, internal control over financial reporting may not prevent or detect fraud or misstatements. This, in turn, could have an adverse impact on the market price for our common shares, and could adversely affect our ability to access the capital markets.
We do not intend to pay dividends on our common shares and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common shares.
We do not intend to declare and pay dividends on our common shares for the foreseeable future. Therefore, you are not likely to receive any dividends on your common shares for the foreseeable future and the success of an investment in our common shares will depend upon any future appreciation in their value. There is no guarantee that our common shares will appreciate in value or even maintain the price at which our shareholders have purchased their shares. The payment of future dividends, however, will be at the discretion of our Board of Directors and will depend on, among other things, our earnings, financial condition, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations that our Board of Directors deems relevant. The credit agreement governing our Senior Secured Credit Facilities and the indentures governing the New Senior Notes also limit our ability to pay dividends. In addition, Bermuda law imposes requirements that may restrict our ability to pay dividends to holders of our common shares. As a consequence of these limitations and restrictions, we may not be able to make, or may have to reduce or eliminate, the payment of dividends on our common shares.
Future sales of our common shares in the public market could lower our share price, and any additional capital raised by us through the sale of equity or convertible debt securities may dilute your ownership in us and may adversely affect the market price of our common shares.
We and our shareholders may sell additional common shares in subsequent offerings. We may also issue additional common shares or convertible debt securities. As of February 19, 2019, we had 1,000,000,000 common shares authorized and 234,282,735 common shares outstanding.
We cannot predict the size of future issuances or sales of our common shares or the effect, if any, that future issuances and sales of our common shares will have on the market price of our common shares. Sales of substantial amounts of our common shares (including sales that may occur pursuant to the registration rights of Berkshire, sales by members of management and shares that may be issued in connection with an acquisition), or the perception that such sales could occur, may adversely affect prevailing market prices for our common shares. See Part III, Item 13, “Certain Relationships and Related Transactions and Director Independence.”

26

Table of Contents

We are a Bermuda company and it may be difficult for you to enforce judgments against us or our directors and executive officers.
We are a Bermuda exempted company. As a result, the rights of our shareholders are governed by Bermuda law and our memorandum of association and bye-laws. The rights of shareholders under Bermuda law may differ from the rights of shareholders of companies incorporated in another jurisdiction, and a substantial portion of our assets are located outside the United States. As a result, it may be difficult for investors to effect service of process on those persons in the United States or to enforce in the United States judgments obtained in U.S. courts against us or those persons based on the civil liability provisions of the U.S. securities laws. It is doubtful whether courts in Bermuda will enforce judgments obtained in other jurisdictions, including the United States, against us or our directors or officers under the securities laws of those jurisdictions or entertain actions in Bermuda against us or our directors or officers under the securities laws of other jurisdictions.
Bermuda law differs from the laws in effect in the United States and may afford less protection to our shareholders.
We are organized under the laws of Bermuda. As a result, our corporate affairs are governed by the Companies Act 1981 (the "Companies Act"), which differs in some material respects from laws typically applicable to U.S. corporations and shareholders, including the provisions relating to interested directors, amalgamations, mergers and acquisitions, takeovers, shareholder lawsuits and indemnification of directors. Generally, the duties of directors and officers of a Bermuda company are owed to the company only. Shareholders of Bermuda companies typically do not have rights to take action against directors or officers of the company and may only do so in limited circumstances. Shareholder class actions are not available under Bermuda law. The circumstances in which shareholder derivative actions may be available under Bermuda law are substantially more proscribed and less clear than they would be to shareholders of U.S. corporations. The Bermuda courts, however, would ordinarily be expected to permit a shareholder to commence an action in the name of a company to remedy a wrong to the company where the act complained of is alleged to be beyond the corporate power of the company or illegal, or would result in the violation of the company’s memorandum of association or bye-laws. Furthermore, consideration would be given by a Bermuda court to acts that are alleged to constitute a fraud against the minority shareholders or, for instance, where an act requires the approval of a greater percentage of the company’s shareholders than those who actually approved it.
When the affairs of a company are being conducted in a manner that is oppressive or prejudicial to the interests of some shareholders, one or more shareholders may apply to the Supreme Court of Bermuda, which may make such order as it sees fit, including an order regulating the conduct of the company’s affairs in the future or ordering the purchase of the shares of any shareholders by other shareholders or by the company. Additionally, under our bye-laws and as permitted by Bermuda law, each shareholder has waived any claim or right of action against our directors or officers for any action taken by directors or officers in the performance of their duties, except for actions involving fraud or dishonesty. In addition, the rights of our shareholders and the fiduciary responsibilities of our directors under Bermuda law are not as clearly established as under statutes or judicial precedent in existence in jurisdictions in the United States, particularly the State of Delaware. Therefore, our shareholders may have more difficulty protecting their interests than would shareholders of a corporation incorporated in a jurisdiction within the United States.
We have anti-takeover provisions in our bye-laws that may discourage a change of control.
Our bye-laws contain provisions that could make it more difficult for a third party to acquire us without the consent of our Board of Directors. These provisions provide for:
a classified Board of Directors with staggered three-year terms; although on May 2, 2018, our shareholders approved the elimination of our classified board structure over a three-year transition period;
directors only to be removed for cause;
restrictions on the time period in which directors may be nominated; and
our Board of Directors to determine the powers, preferences and rights of our preference shares and to issue the preference shares without shareholder approval.
These anti-takeover defenses could discourage, delay or prevent a transaction involving a change in control of our company and may prevent our shareholders from receiving the benefit from any premium to the market price of our common shares offered by a bidder in a takeover context. Even in the absence of a takeover attempt, the existence of these provisions may adversely affect the prevailing market price of our common shares if the provisions are viewed as discouraging takeover attempts in the future. These provisions could also discourage proxy contests, make it more difficult for you and other shareholders to elect directors of your choosing and cause us to take corporate actions other than those you desire.

27

Table of Contents

ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our corporate headquarters is located in Philadelphia, PA. Our extensive geographic footprint is comprised of 50 manufacturing facilities (including 13 manufacturing sites operated by our joint ventures), four major technology centers and 47 customer training centers supporting our global operations. The table below presents summary information regarding our facilities as of December 31, 2018.
Type of Facility/Country
  
Location
  
Segment
Manufacturing Facilities
  
 
  
 
North America
  
 
  
 
Canada
  
Ajax
  
Transportation
 
 
Cornwall
 
Performance
United States of America
  
Front Royal, VA
  
Performance; Transportation
 
  
Ft. Madison, IA
  
Performance; Transportation
 
  
Houston, TX
  
Performance
 
 
High Point, NC
 
Performance
 
  
Hilliard, OH
  
Performance; Transportation
 
 
Jacksonville, TX
 
Performance
 
  
Mt. Clemens, MI
  
Performance; Transportation
 
 
Orrville, OH
 
Performance
 
 
Sacramento, CA
 
Performance
 
 
Fridley, MN
 
Performance
 
 
 
 
 
Latin America
  
 
  
 
Argentina
 
Buenos Aires
 
Performance; Transportation
Brazil
  
Guarulhos
  
Performance; Transportation
Mexico
  
Monterrey
  
Performance
 
  
Ocoyoacac
  
Performance; Transportation
 
  
Tlalnepantla
  
Performance; Transportation
 
 
 
 
 
EMEA
  
 
  
 
Austria
  
Guntramsdorf
  
Performance; Transportation
Belgium
  
Mechelen
  
Performance; Transportation
France
  
Montbrison
  
Performance
Germany
  
Wuppertal
  
Performance; Transportation
 
  
Landshut
  
Performance
Netherlands
 
Zuidland
 
Performance
Sweden
  
Vastervik
  
Performance
Switzerland
  
Bulle
  
Performance
Turkey
  
Gebze
  
Performance; Transportation
United Kingdom
  
Darlington
  
Performance
 
 
Farnham
 
Performance
 
 
Huthwaite
 
Performance
 
 
Tewksbury
 
Performance
 
 
West Bromwich
 
Performance
Asia Pacific
  
 
  
 
China
  
Changchun
  
Performance; Transportation
 
  
Jiading
  
Performance; Transportation
India
  
Savli
  
Performance; Transportation
Malaysia
  
Kuala Lumpur
  
Performance
 
 
Shah Alam
 
Performance
Thailand
 
Bangplee
 
Performance

28

Table of Contents

 
 
 
 
 
Type of Facility/Country
  
Location
  
Segment
Joint Venture Manufacturing
Facilities
  
 
  
 
China
  
Chengdu
  
Performance
 
  
Dongguan
  
Performance
 
  
Huangshan
  
Performance
 
  
Qingpu
  
Performance
 
  
Shangdong
  
Performance
Colombia
  
Cartagena de Indias
  
Performance
Indonesia
  
Cikarang
  
Performance
Taiwan
  
Taipei
  
Transportation
Guatemala
  
Amatitlan
  
Performance
United States of America
 
Madison, AL
 
Performance
 
 
Riverside, CA
 
Performance
 
 
 
 
 
Joint Venture Partner Manufacturing Facilities
  
 
  
 
South Africa
  
Port Elizabeth
  
Transportation
Russia
  
Moscow
  
Transportation
 
 
 
 
 
Technology Centers
  
 
  
 
China
  
Shanghai
  
Performance; Transportation
Germany
  
Wuppertal
  
Performance; Transportation
United States of America
  
Mt. Clemens, MI
  
Performance; Transportation
 
  
Philadelphia, PA
  
Performance; Transportation
 
 
 
 
 
Customer Training Centers
  
Location by Region
  
Number of Facilities
 
  
North America
  
8
 
  
Latin America
  
7
 
  
EMEA
  
18
 
  
Asia Pacific
  
14
ITEM 3. LEGAL PROCEEDINGS
We are from time to time party to legal proceedings that arise in the ordinary course of business. We are not involved in any litigation other than that which has arisen in the ordinary course of business. We do not expect that any currently pending lawsuits will have a material effect on us as discussed in Note 6 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.


29

Table of Contents

PART II
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Share Price and Dividends
Our common shares are traded on the New York Stock Exchange under the symbol "AXTA."
As of February 19, 2019, there were 12 registered holders of record of Axalta’s common stock as shown on the records of the Company’s transfer agent. A substantially greater number of holders of Axalta common stock are “street name” or beneficial holders, whose shares of record are held by banks, brokers and other financial institutions. Since our incorporation in August 2012, we have not paid dividends on our common shares, and we do not currently intend to pay dividends in the foreseeable future. The declaration and payment of any dividends in the future will be determined by our Board of Directors, in its discretion, and will depend on a number of factors, including our earnings, capital requirements, overall financial condition and contractual restrictions, including covenants in the agreements governing our New Senior Notes and Senior Secured Credit Facilities, which may limit our ability to pay dividends.
Recent Sales of Unregistered Securities
None.
Issuer Purchases of Equity Securities
The following table summarizes the Company's share repurchase activity through its share repurchase program for the three months ended December 31, 2018:
(in thousands, except per share data)
 
 
 
 
 
 
 
 
Month
 
Total Number of Shares Purchased
 
Average Price Paid per Share
 
Total Number of Shares Purchased as Part of Publicly Announced Programs (1)
 
Approximate Dollar Value of Shares That May Yet Be Purchased Under Our Share Repurchase Agreement(1)
October 2018
 
915.0

 
$
27.60

 
915.0

 
$
441,517.6

November 2018
 
1,797.3

 
24.97

 
1,797.3

 
396,636.5

December 2018
 
1,310.5

 
23.03

 
1,310.5

 
366,455.5

Total
 
4,022.8

 
$
24.94

 
4,022.8

 
$
366,455.5

(1) Shares were repurchased through the $675.0 million share repurchase program announced in March 2017. We repurchased $100.3 million of our common shares during the three months ended December 31, 2018 and $208.2 million in prior periods. At December 31, 2018, the Company had remaining authorization to repurchase $366.5 million of shares. There is no expiration date on the share repurchase program.

30

Table of Contents

Stock Performance
The line graph illustrated below compares the cumulative total shareholder value return of our common shares since our initial public offering with the cumulative total returns of an overall stock market index, the Standard & Poor's Composite 500 Index ("S&P 500"), and our peer group index, Standard & Poor's 500 Chemicals Index ("S&P 500 Chemicals"). This graph assumes an investment of $100 in our common shares and each index (with all dividends reinvested) on November 12, 2014, the date on which our common shares began trading on the NYSE.
a201810kperformancegrapha01.jpg

31

Table of Contents

ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected consolidated financial data and other information of Axalta and should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” and our audited consolidated financial statements and the related notes included elsewhere in this Form 10-K. The selected consolidated financial data for the years ended December 31, 2018, 2017 and 2016 and as of December 31, 2018 and 2017 are derived from our audited financial statements included elsewhere in this Form 10-K. The selected consolidated financial data for the years ended December 31, 2015 and 2014 and as of December 31, 2016, 2015 and 2014 are derived from our audited financial statements not included in this Form 10-K.
 
 
Year Ended December 31,
(In millions, except per share data)
 
2018
 
2017
 
2016
 
2015
 
2014
Statements of Operations Data:
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
4,669.7

 
$
4,352.9

 
$
4,068.8

 
$
4,083.9

 
$
4,356.6

Other revenue
 
26.3

 
24.1

 
23.9

 
26.1

 
29.8

Total revenue
 
4,696.0

 
4,377.0

 
4,092.7

 
4,110.0

 
4,386.4

Cost of goods sold
 
3,106.3

 
2,780.5

 
2,528.8

 
2,603.5

 
2,899.2

Selling, general and administrative expenses (1)
 
959.1

 
995.4

 
959.8

 
908.8

 
990.1

Venezuela asset impairment and deconsolidation charge
 

 
70.9

 
57.9

 

 

Research and development expenses
 
73.1

 
65.3

 
57.7

 
51.6

 
49.5

Amortization of acquired intangibles
 
115.4

 
101.2

 
83.4

 
80.7

 
83.8

Income from operations
 
442.1

 
363.7

 
405.1

 
465.4

 
363.8

Interest expense, net
 
159.6

 
147.0

 
178.2

 
196.5

 
217.7

Other expense, net
 
15.0

 
27.1

 
144.2

 
111.0

 
114.4

Income before taxes
 
267.5

 
189.6

 
82.7

 
157.9

 
31.7

Provision for income taxes
 
54.2

 
141.9

 
38.1

 
62.1

 
0.1

Net income
 
213.3

 
47.7

 
44.6

 
95.8

 
31.6

Less: Net income attributable to noncontrolling interests
 
6.2

 
11.0

 
5.8

 
4.2

 
7.3

Net income attributable to controlling interests
 
$
207.1

 
$
36.7

 
$
38.8

 
$
91.6

 
$
24.3

Per share data:
 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
 
Basic net income per share
 
$
0.87

 
$
0.15

 
$
0.16

 
$
0.39

 
$
0.11

Diluted net income per share
 
$
0.85

 
$
0.15

 
$
0.16

 
$
0.38

 
$
0.11

Basic weighted average shares outstanding
 
239.0

 
240.4

 
238.1

 
233.8

 
229.3

Diluted weighted average shares outstanding
 
242.9

 
246.1

 
244.4

 
239.7

 
230.3

 
 
 
 
 
 
 
 
 
 
 
Other Financial Data:
 
 
 
 
 
 
 
 
 
 
Cash flows from:
 
 
 
 
 
 
 
 
 
 
Operating activities
 
$
496.1

 
$
540.0

 
$
559.3

 
$
409.8

 
$
251.4

Investing activities
 
(216.1
)
 
(689.6
)
 
(257.0
)
 
(166.2
)
 
(173.8
)
Financing activities
 
(341.3
)
 
367.3

 
(232.6
)
 
(84.7
)
 
(123.2
)
Depreciation and amortization
 
369.1

 
347.5

 
322.1

 
307.7

 
308.7

Purchases of property, plant and equipment
 
(143.4
)
 
(125.0
)
 
(136.2
)
 
(138.1
)
 
(188.4
)
 
 
December 31,
(In millions)
 
2018
 
2017
 
2016
 
2015
 
2014
Balance sheet data:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
693.6

 
$
769.8

 
$
535.4

 
$
485.0

 
$
382.1

Working capital (2)
 
1,269.0

 
1,233.4

 
977.9

 
955.2

 
854.7

Total assets
 
6,675.7

 
6,832.2

 
5,866.2

 
5,839.8

 
6,152.4

Indebtedness
 
3,864.0

 
3,915.6

 
3,263.9

 
3,441.5

 
3,614.3

Total liabilities
 
5,365.2

 
5,424.4

 
4,619.6

 
4,706.5

 
5,046.3

Total shareholders’ equity
 
1,310.5

 
1,407.8

 
1,246.6

 
1,133.3

 
1,106.1

Cash dividends declared per common share
 

 

 

 

 

(1)
Selling, general and administrative expense for the years ended December 31, 2018, 2017, 2016 and 2015 include costs primarily associated with our Axalta Way cost-savings initiatives of $82.8 million, $63.8 million, $77.6 million and $64.4 million, respectively. Selling, general and administrative expense for the year ended December 31, 2014 include costs primarily associated with transition-related and cost-savings initiatives of $127.1 million.
(2)
Working capital is defined as current assets less current liabilities.

32

Table of Contents

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes thereto included elsewhere in this Annual Report on Form 10-K, as well as the information presented under Part II, Item 6, "Selected Financial Data" of this Annual Report on Form 10-K.
FORWARD-LOOKING STATEMENTS
Many statements made in the following discussion and analysis of our financial condition and results of operations and elsewhere in this Annual Report on Form 10-K that are not statements of historical fact, including statements about our beliefs and expectations, are "forward-looking statements" within the meaning of federal securities laws and should be evaluated as such. Forward-looking statements include information regarding industry outlook as well as possible or assumed future results of operations, including descriptions of our business plan, strategies and capital structure. These statements often include words such as "anticipate," "expect," "suggests," "plan," "believe," "intend," "estimates," "targets," "projects," "should," "could," "would," "may," "will," "forecast" and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. As you read and consider this Annual Report on Form 10-K, you should understand that these statements are not guarantees of performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions, including, but not limited to, the risks and uncertainties described in "Non-GAAP Financial Measures" and "Forward-Looking Statements," as well as "Risk Factors" and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections. Factors that may materially affect such forward-looking statements and projections include:
adverse developments in economic conditions and, particularly, in conditions in the automotive and transportation industries;
volatility in the capital, credit and commodities markets;
our inability to successfully execute on our growth strategy;
increased competition;
reduced demand for some of our products as a result of improved safety features on vehicles, insurance company influence, new business models or new methods of travel
risks of the loss or change in purchasing levels of any of our significant customers or the consolidation of MSOs, distributors and/or body shops;
our reliance on our distributor network and third-party delivery services for the distribution and export of certain of our products;
credit risk exposure from our customers;
price increases or business interruptions in our supply of raw materials;
failure to develop and market new products and manage product life cycles;
business disruptions, security threats and security breaches, including security risks to our information technology systems;
risks associated with our outsourcing strategies;
risks associated with our non-U.S. operations;
currency-related risks;
terrorist acts, conflicts, wars and natural disasters that may materially adversely affect our business, financial condition and results of operations;
risks associated with the United Kingdom’s withdrawal from the European Union;
failure to comply with the anti-corruption laws of the United States and various international jurisdictions;

33

Table of Contents

failure to comply with anti-terrorism laws and regulations and applicable trade embargoes;
risks associated with protecting data privacy;
significant environmental liabilities and costs as a result of our current and past operations or products, including operations or products related to our business prior to the Acquisition;
transporting certain materials that are inherently hazardous due to their toxic nature;
litigation and other commitments and contingencies;
ability to recruit and retain the experienced and skilled personnel we need to compete;
unexpected liabilities under any pension plans applicable to our employees;
work stoppages, union negotiations, labor disputes and other matters associated with our labor force;
our ability to protect and enforce intellectual property rights;
intellectual property infringement suits against us by third parties;
our ability to realize the anticipated benefits of any acquisitions and divestitures;
our joint ventures’ ability to operate according to our business strategy should our joint venture partners fail to fulfill their obligations;
risk that the insurance we maintain may not fully cover all potential exposures;
risks associated with changes in tax rates or regulations, including unexpected impacts of the new U.S. TCJA legislation, which may differ with further regulatory guidance and changes in our current interpretations and assumptions;
our substantial indebtedness;
our ability to obtain additional capital on commercially reasonable terms may be limited;
any statements of belief and any statements of assumptions underlying any of the foregoing;
other factors disclosed in this Annual Report on Form 10-K and our other filings with the SEC; and
other factors beyond our control.
These cautionary statements should not be construed by you to be exhaustive and are made only as of the date of this Annual Report on Form 10-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
OVERVIEW
We are a leading global manufacturer, marketer and distributor of high performance coatings systems. We have over a 150-year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technologies and customer service. Our diverse global footprint of 50 manufacturing facilities, four technology centers, 47 customer training centers and approximately 14,000 employees allows us to meet the needs of customers in over 130 countries. We serve our customers through an extensive sales force and technical support organization, as well as through approximately 4,000 independent, locally based distributors.
We operate our business in two operating segments, Performance Coatings and Transportation Coatings. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines.
Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets within this segment are refinish and industrial.
Through our Transportation Coatings segment we provide advanced coating technologies to OEMs of light and commercial vehicles. These increasingly global customers require a high level of technical support coupled with cost-effective, environmentally responsible, coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets within this segment are light vehicle and commercial vehicle.

34

Table of Contents

BUSINESS HIGHLIGHTS
General Business Highlights
Our net sales increased 7.3% for the year ended December 31, 2018 compared to the year ended December 31, 2017, driven by volume growth of 4.1%, primarily within our Performance Coatings segment. Acquisitions contributed to 3.5% of the volume increase. Average selling prices increased net sales by 2.6% resulting from both end-markets within the Performance Coatings segment which were slightly offset by pricing concessions within the Transportation Coatings segment. Favorable currency translation contributed to a further increase of net sales of 0.6% due primarily to the impacts of the strengthening Euro and Chinese Renminbi compared to the U.S. Dollar. The following trends have impacted our segment and end-market sales performance:
Performance Coatings: Net sales increased 13.1% compared to 2017 driven primarily by stronger volumes in our industrial end-market, including the impacts of acquisitions, as well as increases in average selling prices across both end-markets.
Transportation Coatings: Net sales decreased by 2.0% compared to 2017 driven primarily by lower average selling prices within the light vehicle end-market, partially offset by increased organic sales volumes in our commercial vehicle end-market.
Our business serves four end-markets globally as follows:
 (In millions)
 
Year Ended December 31,
 
2018 vs 2017
 
2017 vs 2016
 
 
2018
 
2017
 
2016
 
% change
 
% change
Performance Coatings
 
 
 
 
 
 
 
 
 
 
Refinish
 
$
1,754.2

 
$
1,645.2

 
$
1,679.7

 
6.6
 %
 
(2.1
)%
Industrial