EX-99 2 a0920248-kquarterlyxex99.htm EX-99

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艾仕得塗料系統 憲法大道1050號 費城，賓夕法尼亞州19112 美國			投資者和媒體聯繫人 Colleen Lubic D +1 610-999-9407 Colleen.Lubic@axalta.com

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阿克蘇達發佈2024年第三季度業績

2024年10月30日，賓夕法尼亞州費城 - 阿克蘇諾貝爾塗料有限公司（NYSE: AXTA）（"阿克蘇諾貝爾"），一家領先的全球塗料公司，宣佈截至2024年9月30日的第三季度財務業績。

2024年第三季度亮點：

▪第三季度淨銷售額創紀錄，達到13.2億美元

▪淨利潤同比增長40%至10200萬美元；淨利潤率爲7.7%

▪記錄第三季度調整後的EBITDA爲29100萬美元

▪調整後的EBITDA利潤率同比提高220個點子，達到22.1%

▪攤薄後每股收益同比增長39%，達到0.46美元，調整後攤薄後每股收益同比增長31%，達到0.59美元

▪回購了5000萬美元的普通股

2024年第三季度財務綜合結果

2024年第三季度淨銷售額同比增長0.8%，達到公司歷史最高水平，爲13.2億美元，主要受CoverFlexx收購的貢獻和成交量增長部分抵消，但同時受合同原材料價格指數影響和混合比例風險影響。

淨利潤同比增長40%，達到10200萬美元，淨利潤率爲7.7%。調整後的淨利潤由於變量成本降低和營業費用減少，同比增加3100萬美元，達到12900萬美元。調整後的EBITDA同比增長12%，達到29100萬美元，較上一年同期的26100萬美元有所提升。調整後的EBITDA利潤率擴大了220個點子，達到22.1%。每股攤薄收益同比增長39%，達到0.46美元，而上一年同期爲0.33美元。調整後的每股攤薄收益同比提高31%，達到0.59美元。

2024年第三季度經營活動產生的現金爲19400萬美元，低於去年同期的21000萬美元。這一減少主要是由於更高的營運資本驅動。本季度末的現金及現金等價物爲56700萬美元，總流動性超過12億美元。艾仕達在季末的淨債務與過去十二個月（「LTM」）調整後的息稅折舊攤銷前利潤（調整後息稅折舊攤銷前利潤比率或淨槓桿比率）爲2.7倍，而2023年9月30日時爲3.2倍。在第三季度，艾仕達回購了超過140萬股普通股，總價值爲5000萬美元。

討論分段結果

2024年第三季度塗料業務淨銷售額爲8,7700萬美元，同比增長2%。翻新業務淨銷售額同比增長5%，達到5,5400萬美元，主要得益於CoverFlexx收購和淨新增車身店業務的貢獻，但部分抵消掉了混合風險和車身店活動減少。工業業務淨銷售額同比下降1%，降至3,2300萬美元，因爲較低的銷量大大抵消了正的定價。

Performance Coatings在第三季度實現了調整後的EBITDA爲22100萬美元，而去年同期爲20000萬美元，調整後的EBITDA利潤率分別爲25.3%和23.3%。部門調整後的EBITDA和部門調整後的EBITDA利潤率增長主要是由於較低的變量成本和營業費用的降低。

2024年第三季度移動塗料的淨銷售額爲44300萬美元，比去年同期下降2%。輕型車淨銷售額與去年持平，成交量增長5%，但被合同原材料成本上漲和匯率期貨轉換阻力抵消。商用車淨銷售額同比下降8%至10300萬美元，主要是由於北美和拉丁美洲Class 8在建數量預期下降導致成交量降低。正如預期的那樣，移動塗料的價格組合同比下降3%，受到組合和合同原材料成本上漲影響。

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移動塗層業務在第三季度實現了7000萬美元的調整後息稅折舊及攤銷前利潤，而去年同期爲6100萬美元，分別爲15.7%和13.4%的利潤率。部門調整後息稅折舊及攤銷前利潤和部門調整後息稅折舊及攤銷前利潤率的增長，是由於較低的變量成本、新的業務獲得和較低的運營成本所推動的。

安寶CEO兼總裁Chris Villavarayan表示：「我們第三季度的業績異常出色。我非常自豪地宣佈，儘管在所有四個終端市場面臨宏觀經濟風險，但我們每個員工的承諾和奉獻爲公司創造了銷售淨額和調整後EBITDA創紀錄的第三季度。作爲一個安寶，我們正在成功執行我們的2026年A計劃，並在關鍵行業基準上表現優異，我們致力於釋放我們的完整盈利潛力。」

全年 2024 年展望

(以百萬爲單位，除%和每股數據外)

2024全年

項目

淨銷售額

~$5,275

調整後的EBITDA

~$1,115

攤薄後每股收益調整後

$2.15

自由現金流

~$500

折舊及攤銷（遞進式折舊及攤銷）

~$280 ($50)

稅率，調整後

~25%

攤薄後流通股份

~220

利息費用

~$210

資本支出

~$140

由於缺乏未來收益前景的指標，Axalta未提供關於調整後的EBITDA、調整後的攤薄每股收益、自由現金流或稅率的非GAAP估算的調和表。由於沒有必要的信息可用以計算出有意義或準確的調和項目，因此無法提供前瞻性依據。請參閱「非GAAP財務指標」以獲取更多信息。

電話會議信息

Axalta將於2024年10月30日（星期三）上午8:00舉行電話會議，討論其2024年第三季度財務業績。電話會議的現場網絡直播將可在網上觀看 www.axalta.com/investorcall。會議的網絡直播重播將在電話會議後不久發佈，並將保持至2025年10月30日。電話會議的撥入電話號碼是1-800-267-6316，會議ID是AXALTA。對於無法參與的人士，重播將通過2024年11月6日提供。重播撥入號碼爲+1-844-512-2921。重播密碼是11157263。

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關於前瞻性聲明的警示性聲明

本公告可能包含根據美國《1995年私營證券訴訟改革法》有關Axalta及其子公司的某些前瞻性聲明，包括但不限於我們之前宣佈的2024-2026年三年策略（「2026年A計劃」），以及我們的展望和/或指引，其中包括淨銷售額，調整後的EBITDA，調整後的攤薄後每股收益，自由現金流，折舊和攤銷（「D&A」），計入步增D&A，稅率，調整後的攄息加權平均股份，利息支出和資本支出。 Axalta已經用諸如「展望」，「潛力」和「計劃」等詞語來標識其中的一些前瞻性聲明，以及這些詞語的否定形式或其他可比較或類似的術語。所有這些聲明均基於管理層的期望，以及由管理層準備的他們認爲合理但本質上是不確定的估計和假設。這些聲明涉及風險和不確定性，包括但不限於經濟，競爭，政府和技術因素等Axalta無法控制的因素，以及與執行我們之前宣佈的轉型計劃和2026年A計劃相關的風險和假設，可能導致其業務，行業，策略，融資活動或實際結果出現重大差異。有關可能影響Axalta財務結果的因素的更多信息，請參閱Axalta最近一份年度10-k表格和季度10-Q表格中的「前瞻性聲明」，「風險因素」，以及「管理對財務狀況和業績的討論」中得到，以及我們已向美國證券交易委員會提交或提供的其他文件。Axalta不承擔更新或修訂此處包含的任何前瞻性聲明的義務，並不論是出於新信息，未來事件還是其他原因。

Non-GAAP Financial Measures

This release includes financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, Free Cash Flow, total net leverage ratio, tax rate, as adjusted, and Adjusted EBIT. Management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, tax rate, as adjusted, and Adjusted EBIT in the analysis of our financial and operating performance because they assist in the evaluation of underlying trends in our business. Management uses Free Cash Flow and total net leverage ratio in the analysis of (1) our liquidity, (2) our ability to incur and service our debt and (3) strategic capital allocation decisions. Adjusted EBITDA, Adjusted Diluted EPS, adjusted net income and Adjusted EBIT consist of EBITDA, Diluted EPS, net income attributable to common shareholders and EBIT, respectively, adjusted for (i) certain non-cash items included within net income, (ii) certain items Axalta does not believe are indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items that have not otherwise occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Free cash flow consists of cash provided by (used for) operating activities less purchase of property, plant and equipment plus interest proceeds on swaps designated as net investment hedges. Total net leverage ratio consists of net debt divided by Adjusted EBITDA, with net debt defined as total debt less cash and cash equivalents. We believe that making the foregoing adjustments provides investors meaningful information to understand our operating results and ability to analyze financial and business trends on a period-to-period basis. The non-GAAP financial measures used by Axalta may differ from similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, Free Cash Flow, total net leverage ratio, tax rate, as adjusted and Adjusted EBIT should not be considered as alternatives to net sales, net income (loss), income (loss) from operations or any other financial measures derived in accordance with GAAP. These non-GAAP financial measures have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This release includes a reconciliation of certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP. Axalta does not provide a reconciliation for Adjusted EBITDA, Adjusted Diluted EPS, tax rate, as adjusted, or Free Cash Flow on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. For example, such reconciling items include the impact of foreign currency exchange gains or losses, gains or losses that are unusual or nonrecurring in nature, as well as discrete taxable events. These items are uncertain, depend on various factors and may have a substantial and unpredictable impact on our GAAP results.

Segment Financial Measures

The primary measure of segment operating performance is Adjusted EBITDA, which is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results and that management believes reflects Axalta’s core operating performance. As we do not measure segment operating performance based on net income, a reconciliation of this non-GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP is not available. Beginning with the fourth quarter of 2023, we replaced Adjusted EBIT with Adjusted EBITDA as the primary measure of segment operating performance. As previously disclosed, we will continue publishing segment Adjusted EBIT through 2024 to allow for historical trend analyses.

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About Axalta Coating Systems

Axalta is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions. From light vehicles, commercial vehicles and refinish applications to electric motors, building facades and other industrial applications, our coatings are designed to prevent corrosion, increase productivity and enhance durability. With more than 150 years of experience in the coatings industry, the global team at Axalta continues to find ways to serve our more than 100,000 customers in over 140 countries better every day with the finest coatings, application systems and technology. For more information visit axalta.com and follow us @axalta on X.

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Financial Statement Tables
AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
						Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023
Net sales						$	1,320					$	1,309					$	3,965					$	3,887
Cost of goods sold						858						886						2,614						2,692
Selling, general and administrative expenses						211						209						631						625
Other operating charges						15						13						78						22
Research and development expenses						19						18						55						56
Amortization of acquired intangibles						24						20						68						66
Income from operations						193						163						519						426
Interest expense, net						54						55						158						158
Other (income) expense, net						(3)						5						4						15
Income before income taxes						142						103						357						253
Provision for income taxes						40						30						103						58
Net income						102						73						254						195
Less: Net income attributable to noncontrolling interests						1						1						—						1
Net income attributable to common shareholders						$	101					$	72					$	254					$	194
Basic net income per share						$	0.46					$	0.33					$	1.15					$	0.88
Diluted net income per share						$	0.46					$	0.33					$	1.15					$	0.87
Basic weighted average shares outstanding						218.9						221.0						219.8						221.3
Diluted weighted average shares outstanding						219.9						221.9						220.8						222.1

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AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except per share data)
						September 30, 2024						December 31, 2023
Assets
Current assets:
Cash and cash equivalents						$	567					$	700
Restricted cash						4						3
Accounts and notes receivable, net						1,298						1,260
Inventories						818						741
Prepaid expenses and other current assets						151						117
Total current assets						2,838						2,821
Property, plant and equipment, net						1,188						1,204
Goodwill						1,718						1,591
Identifiable intangibles, net						1,207						1,130
Other assets						549						526
Total assets						$	7,500					$	7,272
Liabilities, Shareholders’ Equity
Current liabilities:
Accounts payable						$	708					$	725
Current portion of borrowings						20						26
Other accrued liabilities						694						677
Total current liabilities						1,422						1,428
Long-term borrowings						3,505						3,478
Accrued pensions						244						252
Deferred income taxes						163						162
Other liabilities						215						179
Total liabilities						5,549						5,499
Shareholders’ equity:
Common shares, $1.00 par, 1,000.0 shares authorized, 254.4 and 253.7 shares issued at September 30, 2024 and December 31, 2023, respectively						254						254
Capital in excess of par						1,590						1,568
Retained earnings						1,540						1,286
Treasury shares, at cost, 36.4 and 33.6 shares at September 30, 2024 and December 31, 2023, respectively						(1,037)						(937)
Accumulated other comprehensive loss						(442)						(444)
Total Axalta shareholders’ equity						1,905						1,727
Noncontrolling interests						46						46
Total shareholders’ equity						1,951						1,773
Total liabilities and shareholders’ equity						$	7,500					$	7,272

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AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
						Nine Months Ended September 30,
						2024						2023
Operating activities:
Net income						$	254					$	195
Adjustment to reconcile net income to cash provided by operating activities:
Depreciation and amortization						207						207
Amortization of deferred financing costs and original issue discount						6						7
Debt extinguishment and refinancing-related costs						3						7
Deferred income taxes						10						(8)
Realized and unrealized foreign exchange losses, net						12						21
Stock-based compensation						21						19
Impairment charges						—						15
Interest income on swaps designated as net investment hedges						(10)						(9)
Other non-cash, net						5						25
Changes in operating assets and liabilities:
Trade accounts and notes receivable						(16)						(213)
Inventories						(54)						66
Prepaid expenses and other assets						(106)						(68)
Accounts payable						(18)						17
Other accrued liabilities						(2)						9
Other liabilities						30						(1)
Cash provided by operating activities						342						289
Investing activities:
Acquisitions, net of cash acquired						(290)						—
Purchase of property, plant and equipment						(78)						(105)
Interest proceeds on swaps designated as net investment hedges						10						9
Settlement proceeds on swaps designated as net investment hedges						—						29
Payments for loans to customers						(21)						(1)
Other investing activities, net						5						3
Cash used for investing activities						(374)						(65)
Financing activities:
Proceeds from short-term borrowings						—						9
Proceeds from long-term borrowings						292						197
Payments on short-term borrowings						(5)						(40)
Payments on long-term borrowings						(273)						(359)
Financing-related costs						(5)						(9)
Purchases of common stock						(100)						(50)
Net cash flows associated with stock-based awards						1						7
Deferred acquisition-related consideration						—						(8)
Other financing activities, net						—						1
Cash used for financing activities						(90)						(252)
Decrease in cash						(122)						(28)
Effect of exchange rate changes on cash						(10)						(19)
Cash at beginning of period						703						655
Cash at end of period						$	571					$	608
Cash at end of period reconciliation:
Cash and cash equivalents						$	567					$	606
Restricted cash						4						2
Cash at end of period						$	571					$	608

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The following table reconciles net income to EBITDA and Adjusted EBITDA for the periods presented (in millions):

						Three Months Ended September 30,												Twelve Months Ended September 30, 2024						Nine Months Ended September 30,												Year Ended December 31, 2023
						2024						2023												2024						2023
Net income						$	102					$	73					$	328					$	254					$	195					$	269
Interest expense, net						54						55						213						158						158						213
Provision for income taxes						40						30						131						103						58						86
Depreciation and amortization						71						71						276						207						207						276
EBITDA						267						229						948						722						618						844
Debt extinguishment and refinancing-related costs (a)						—						4						6						3						7						10
Termination benefits and other employee-related costs (b)						11						12						71						67						14						18
Acquisition and divestiture-related costs (c)						4						1						10						8						1						3
Site closure costs (d)						—						2						4						1						4						7
Impairment charges (e)						—						—						—						—						15						15
Foreign exchange remeasurement losses (f)						—						7						12						8						19						23
Long-term employee benefit plan adjustments (g)						3						3						10						8						7						9
Stock-based compensation (h)						7						5						28						21						19						26
Environmental charge (i)						—						—						4						4						—						—
Other adjustments (j)						(1)						(2)						(2)						(1)						(3)						(4)
Adjusted EBITDA						$	291					$	261					$	1,091					$	841					$	701					$	951
Net sales						$	1,320					$	1,309					$	5,262					$	3,965					$	3,887					$	5,184
Net income margin						7.7		%				5.6		%				6.2		%				6.4		%				5.0		%				5.2		%
Adjusted EBITDA margin						22.1		%				19.9		%				20.7		%				21.2		%				18.0		%				18.4		%
Segment Adjusted EBITDA:
Performance Coatings						$	221					$	200					$	832					$	640					$	550					$	742
Mobility Coatings						70						61						259						201						151						209
Total						$	291					$	261					$	1,091					$	841					$	701					$	951

(a)			Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.
(b)			Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance.
(c)			Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance.
(d)			Represents costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance.
(e)			Represents impairment charges, which are not considered indicative of our ongoing operating performance. The losses recorded during the nine months ended September 30, 2023 and year ended December 31, 2023 were primarily due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023.
(f)			Represents foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures.
(g)			Represents the non-cash, non-service cost components of long-term employee benefit costs.
(h)			Represents non-cash impacts associated with stock-based compensation.
(i)			Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance.
(j)			Represents costs for certain non-operational or non-cash losses (gains), unrelated to our core business and which we do not consider indicative of our ongoing operating performance.

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The following table reconciles net income to adjusted net income for the periods presented (in millions, except per share data):

						Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023
Net income						$	102					$	73					$	254					$	195
Less: Net income attributable to noncontrolling interests						1						1						—						1
Net income attributable to common shareholders						101						72						254						194
Debt extinguishment and refinancing-related costs (a)						—						4						3						7
Termination benefits and other employee-related costs (b)						11						12						67						14
Acquisition and divestiture-related costs (c)						4						1						8						1
Impairment charges (d)						—						—						—						15
Accelerated depreciation and site closure costs (e)						2						2						4						4
Environmental charge (f)						—						—						4						—
Other adjustments (g)						(1)						(2)						(1)						(3)
Step-up depreciation and amortization (h)						11						13						36						43
Total adjustments						27						30						121						81
Income tax provision impacts (i)						(1)						4						13						21
Adjusted net income						$	129					$	98					$	362					$	254
Adjusted diluted net income per share						$	0.59					$	0.45					$	1.64					$	1.14
Diluted weighted average shares outstanding						219.9						221.9						220.8						222.1

(a)			Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.
(b)			Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance.
(c)			Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance.
(d)			Represents impairment charges, which are not considered indicative of our ongoing operating performance. The losses recorded during the nine months ended September 30, 2023 were primarily due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023.
(e)			Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance.
(f)			Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance.
(g)			Represents costs for certain non-operational or non-cash losses (gains), unrelated to our core business and which we do not consider indicative of our ongoing operating performance.
(h)			Represents the incremental step-up depreciation and amortization expense associated with the acquisition of DuPont Performance Coatings by Axalta. We believe this will assist investors in performing meaningful comparisons of past, present and future operating results and better highlight the results of our ongoing operating performance.
(i)			The income tax impacts are determined using the applicable rates in the taxing jurisdictions in which expense or income occurred and includes both current and deferred income tax expense (benefit) based on the nature of the non-GAAP performance measure. Additionally, the income tax impact includes the removal of discrete income tax impacts within our effective tax rate which were expenses of $5 million and $10 million and expenses of $3 million and benefits of $2 million for the three and nine months ended September 30, 2024 and 2023, respectively. The tax adjustments for the three and nine months ended September 30, 2024 and 2023 include the deferred tax benefit ratably amortized into our adjusted income tax rate as the tax attribute related to a January 1, 2020 intra-entity transfer of certain intellectual property rights is realized.

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The following table reconciles cash provided by (used for) operating activities to free cash flow for the periods presented (in millions):

						Three Months Ended March 31,												Three Months Ended June 30,												Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023						2024						2023						2024						2023
Cash provided by (used for) operating activities						$	34					$	(52)					$	114					$	131					$	194					$	210					$	342					$	289
Purchase of property, plant and equipment						(22)						(42)						(23)						(32)						(33)						(31)						(78)						(105)
Interest proceeds on swaps designated as net investment hedges						3						6						4						—						3						3						10						9
Free cash flow						$	15					$	(88)					$	95					$	99					$	164					$	182					$	274					$	193

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The following table reconciles income from operations to adjusted EBIT and segment adjusted EBIT for the periods presented (in millions):

						Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023
Income from operations						$	193					$	163					$	519					$	426
Other (income) expense, net						(3)						5						4						15
Total						196						158						515						411
Debt extinguishment and refinancing-related costs (a)						—						4						3						7
Termination benefits and other employee-related costs (b)						11						12						67						14
Acquisition and divestiture-related costs (c)						4						1						8						1
Impairment charges (d)						—						—						—						15
Accelerated depreciation and site closure costs (e)						2						2						4						4
Environmental charge (f)						—						—						4						—
Other adjustments (g)						(1)						(2)						(1)						(3)
Step-up depreciation and amortization (h)						11						13						36						43
Adjusted EBIT						$	223					$	188					$	636					$	492
Segment Adjusted EBIT (1):
Performance Coatings						$	160					$	135					$	456					$	362
Mobility Coatings						52						40						144						87
Total						212						175						600						449
Step-up depreciation and amortization (h)						11						13						36						43
Adjusted EBIT						$	223					$	188					$	636					$	492

(1)			During the three months ended December 31, 2023, Axalta transitioned to using Adjusted EBITDA as the primary measure to evaluate financial performance of the operating segments and allocate resources. We will continue publishing segment Adjusted EBIT through 2024 to allow for historical trend analyses.
(a)			Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.
(b)			Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance.
(c)			Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance.
(d)			Represents impairment charges, which are not considered indicative of our ongoing operating performance. The losses recorded during the nine months ended September 30, 2023 were primarily due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023.
(e)			Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance.
(f)			Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance.
(g)			Represents costs for certain non-operational or non-cash losses (gains), unrelated to our core business and which we do not consider indicative of our ongoing operating performance.
(h)			Represents the incremental step-up depreciation and amortization expense associated with the acquisition of DuPont Performance Coatings by Axalta. We believe this will assist investors in performing meaningful comparisons of past, present and future operating results and better highlight the results of our ongoing operating performance.

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