A coating includes a first base layer including a nitride of at least Al and Cr, a second base layer including a nitride of at least Al and Cr overlying the first base layer, and an outermost indicator layer overlying the second base layer. The first base layer has a positive residual compressive stress gradient. The second base layer has substantially constant residual compressive stresses. The outermost indicator layer includes a nitride of Si and Me, wherein Me is at least one of Ti, Zr, Hf, and Cr. The outermost indicator layer has residual compressive stresses that are less than the residual compressive stresses of the second base layer.