Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
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Income Statement [Abstract] | ||||
Net sales | $ 1,305 | $ 1,351 | $ 2,567 | $ 2,645 |
Cost of goods sold | 848 | 891 | 1,677 | 1,756 |
Selling, general and administrative expenses | 208 | 213 | 410 | 420 |
Other operating charges | 12 | 2 | 26 | 63 |
Research and development expenses | 20 | 18 | 37 | 36 |
Amortization of acquired intangibles | 24 | 22 | 48 | 44 |
Income from operations | 193 | 205 | 369 | 326 |
Interest expense, net | 45 | 50 | 89 | 104 |
Other expense (income), net | 5 | (1) | 8 | 7 |
Income before income taxes | 143 | 156 | 272 | 215 |
Provision for income taxes | 33 | 43 | 63 | 63 |
Net income | 110 | 113 | 209 | 152 |
Less: Net income (loss) attributable to noncontrolling interests | 1 | 1 | 1 | (1) |
Net income attributable to common shareholders | $ 109 | $ 112 | $ 208 | $ 153 |
Basic net income per share (in dollars per share) | $ 0.50 | $ 0.51 | $ 0.96 | $ 0.70 |
Diluted net income per share (in dollars per share) | $ 0.50 | $ 0.51 | $ 0.95 | $ 0.69 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 110 | $ 113 | $ 209 | $ 152 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 128 | (29) | 190 | (73) |
Unrealized gain on derivatives | 0 | 0 | 0 | 0 |
Unrealized gain on pension and other benefit plan obligations | 1 | 1 | 2 | 2 |
Other comprehensive income (loss), before tax | 129 | (28) | 192 | (71) |
Income tax (benefit) expense related to items of other comprehensive income | (7) | 1 | (8) | 2 |
Other comprehensive income (loss), net of tax | 136 | (29) | 200 | (73) |
Comprehensive income | 246 | 84 | 409 | 79 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 1 | 2 | (1) |
Comprehensive income attributable to common shareholders | $ 246 | $ 83 | $ 407 | $ 80 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions |
Jun. 30, 2025 |
Dec. 31, 2024 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common shares authorized (in shares) | 1,000.0 | 1,000.0 |
Common shares issued (in shares) | 255.0 | 254.5 |
Treasury shares, at cost (in shares) | 38.4 | 36.4 |
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |||
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Jun. 30, 2025 |
Mar. 31, 2025 |
Jun. 30, 2024 |
Mar. 31, 2024 |
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Statement of Stockholders' Equity [Abstract] | ||||
Long-term employee benefit plans, tax expense (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Foreign currency translation, tax expense (benefit) | $ 7 | $ (1) | $ 1 | $ 1 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended |
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Jun. 30, 2025 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position and shareholders' equity of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries (“Axalta,” the “Company,” “we,” “our” and “us”) at June 30, 2025, the results of operations, comprehensive income and changes in shareholders' equity for the three and six months ended June 30, 2025 and 2024, and cash flows for the six months then ended. All intercompany balances and transactions have been eliminated. These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. Certain of our entities are accounted for on a one-month lag basis, the effect of which is not material. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year ended December 31, 2025 or any future period(s). Summary of Significant Accounting Policies Updates Recently Adopted Accounting Guidance In January 2024, we adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), which expands the disclosures about a public entity's reportable segments and the expenses of the entity’s reportable segments. This ASU does not impact our consolidated financial position, results of operations or cash flows. The required disclosures are included in Note 17. Accounting Guidance and Disclosure Rules Issued But Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740) to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid disclosures. The new standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company plans to adopt the guidance and include required enhanced disclosures in its consolidated financial statements for the year ending December 31, 2025. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), to improve disclosures about a public business entity's expenses and require more detailed information about the types of expenses in commonly presented expense captions, such as cost of sales, selling general and administrative expense and research and development. The new standard is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact of ASU 2024-03 on our financial statements.
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REVENUE |
6 Months Ended |
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Jun. 30, 2025 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Consideration for products in which control has transferred to our customers that is conditional on something other than the passage of time is recorded as a contract asset within prepaid expenses and other current assets in the condensed consolidated balance sheets. The contract asset balances at June 30, 2025 and December 31, 2024 were $45 million and $36 million, respectively. We provide certain customers with incremental up-front consideration, subject to clawback provisions, including Business Incentive Plan assets (“BIPs”), which is capitalized as a component of other assets and amortized over the estimated life of the contractual arrangement as a reduction of net sales. We do not receive a distinct service or good in return for these BIPs, but rather receive volume commitments and/or sole supplier status from our customers over the life of the contractual arrangements, which approximates a five-year weighted average useful life. The termination clauses in these contractual arrangements generally include standard clawback provisions that are designed to enable us to collect monetary damages in the event of a customer's failure to meet its commitments under the relevant contract. BIPs are assessed for recoverability annually or more frequently when certain circumstances arise. At June 30, 2025 and December 31, 2024, the total carrying value of BIPs were $193 million and $169 million, respectively, and are presented within other assets in the condensed consolidated balance sheets. For the three and six months ended June 30, 2025 and 2024, $16 million, $31 million, $14 million and $28 million, respectively, was amortized net of clawbacks and reflected as reductions of net sales in the condensed consolidated statements of operations. See Note 17 for disaggregated net sales by end-market.
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GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS During the six months ended June 30, 2025, we completed a strategic acquisition in our Performance Coatings segment. This acquisition was accounted for as a business combination with aggregate consideration of $9 million, of which $6 million was paid, net of $1 million of cash acquired, during the six months ended June 30, 2025. The overall impacts to our unaudited condensed consolidated financial statements were not considered to be material. The fair value attributable to identifiable intangible assets was $5 million, comprised of customer relationship assets, which will be amortized over a weighted average term of approximately 10 years. Goodwill The following table shows changes in the carrying amount of goodwill from December 31, 2024 to June 30, 2025 by reportable segment:
Identifiable Intangible Assets The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2025 and each of the succeeding five years is:
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RESTRUCTURING |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING | RESTRUCTURING During February 2024, we announced a global transformation initiative intended to simplify the Company’s organizational structure and enable us to be more proactive, responsive, and agile and to better serve our customers and to lower our cost base and improve financial performance and cash flow generation (the “2024 Transformation Initiative”). The 2024 Transformation Initiative actions, certain of which are subject to the satisfaction of local law requirements in various jurisdictions, commenced in the first quarter of 2024 and we expect them to be completed by 2026. The 2024 Transformation Initiative is expected to result in a reduction to our workforce of more than 500 employees globally and total pre-tax charges of approximately $82 million in the aggregate, of which approximately $76 million represents severance and other exit-related costs and approximately $6 million represents non-cash accelerated depreciation charges. Total cash expenditures related to the 2024 Transformation Initiative are expected to be approximately $105-115 million, inclusive of $30-40 million for capital expenditures to, among other things, shift manufacturing capacity or capabilities. The 2024 Transformation Initiative resulted in pre-tax charges of $9 million for the six months ended June 30, 2025, which primarily relates to employee severance and other exit costs. The majority of the termination benefits were accounted for in accordance with the applicable guidance for Accounting Standards Codification (“ASC”) 712, Nonretirement Postemployment Benefits, whereby we accounted for termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated. During the three and six months ended June 30, 2025 and 2024, we incurred costs of $9 million, $20 million, $0 million and $55 million, respectively, for termination benefits, net of changes in estimates. The majority of our termination benefits are recorded within other operating charges in the condensed consolidated statements of operations. The remaining payments associated with these actions are expected to be substantially completed within 12 months from June 30, 2025. The following table summarizes the activity related to the termination benefit reserves and expenses from December 31, 2024 to June 30, 2025:
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2025 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees We guarantee certain of our customers’ obligations to third parties, whereby any default by our customers on their obligations could force us to make payments to the applicable creditors ("Customer Obligation Guarantees"). At June 30, 2025 and December 31, 2024, we had outstanding Customer Obligation Guarantees of $24 million and $23 million, respectively, excluding certain outstanding Customer Obligation Guarantees secured by letters of credit under the Revolving Credit Facility discussed further in Note 15. Excluding Customer Obligation Guarantees secured by letters of credit under the Revolving Credit Facility, substantially all of our Customer Obligation Guarantees do not have specified expiration dates. We monitor the Customer Obligation Guarantees to evaluate whether we have a liability at the balance sheet date. We did not have any liabilities related to our outstanding Customer Obligation Guarantees recorded at either June 30, 2025 or December 31, 2024. Operational Matter In January 2021, we became aware of an operational matter affecting certain North America Mobility Coatings customer manufacturing sites. The matter involves the use and application of certain of our products in combination with and incorporated within third-party products. The matter occurred over a discrete period during the fourth quarter of 2020. We concluded that losses from this matter were probable and that a majority of losses would be covered under our insurance policies, subject to deductible and policy limits as defined in our policies. During each of the three and six months ended June 30, 2025 and 2024, expenses recorded relating to the operational matter were immaterial. At June 30, 2025 and December 31, 2024, we had $28 million and $29 million, respectively, recorded for estimated insurance receivables within accounts and notes receivable, net in the condensed consolidated balance sheets. Liabilities of $25 million and $27 million are recorded as other accrued liabilities in the condensed consolidated balance sheets at June 30, 2025 and December 31, 2024, respectively. The recorded probable losses remain an estimate, and actual costs arising from this matter could be materially lower or higher depending on the actual costs incurred to repair the impacted products as well as the availability of additional insurance coverage. Other We are subject to various pending lawsuits, legal proceedings and other claims in the ordinary course of business, including civil, regulatory and environmental matters. These matters may involve third-party indemnification obligations and/or insurance covering all or part of any potential damage incurred by us. All of these matters are subject to many uncertainties and, accordingly, we cannot determine the ultimate outcome of the proceedings and other claims at this time. The potential effects, if any, on our condensed consolidated financial statements will be recorded in the period in which these matters are probable and estimable. Except as set forth in the “Operational Matter” section above, we believe that any sum we may be required to pay in connection with proceedings or claims in excess of the amounts recorded would likely not have a material adverse effect on our results of operations, financial condition or cash flows on a consolidated annual basis but could have a material adverse impact in a particular quarterly reporting period. However, there can be no assurance that any such sum would not have a material adverse effect on our results of operations, financial condition or cash flows on a consolidated annual basis. We are involved in environmental remediation and ongoing compliance activities at several sites. The timing and duration of remediation and ongoing compliance activities are determined on a site by site basis depending on local regulations. The liabilities recorded represent our estimable future remediation costs and other anticipated environmental liabilities. We have not recorded liabilities at sites where a liability is probable but a range of loss is not reasonably estimable. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis but could have a material adverse impact in a particular quarterly reporting period.
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LONG-TERM EMPLOYEE BENEFITS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM EMPLOYEE BENEFITS | LONG-TERM EMPLOYEE BENEFITS Components of Net Periodic Benefit Cost The following table sets forth the pre-tax components of net periodic benefit costs for our defined benefit plans for the three and six months ended June 30, 2025 and 2024:
All non-service components of net periodic benefit cost are recorded in other expense (income), net within the accompanying condensed consolidated statements of operations.
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STOCK-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION During each of the three and six months ended June 30, 2025 and 2024, we recognized $8 million, $13 million, $8 million and $14 million in stock-based compensation expense, respectively, which was allocated between cost of goods sold and selling, general and administrative expenses in the condensed consolidated statements of operations. We recognized tax benefits on stock-based compensation of $0 million, $1 million, $0 million, $1 million for the three and six months ended June 30, 2025 and 2024, respectively. 2025 Activity
Tax expenses on the vesting of restricted stock units during the six months ended June 30, 2025 were immaterial. At June 30, 2025, there was $20 million of unamortized expense relating to unvested restricted stock units that is expected to be amortized over a weighted average period of 1.5 years.
(1) Activity during the six months ended June 30, 2025 rounds to zero. Our performance share units allow for participants to vest in zero to 200% of the target number of shares granted. At June 30, 2025, there was $22 million of unamortized expense relating to unvested performance share units that is expected to be amortized over a weighted average period of 1.9 years. The forfeitures include portions of performance share unit grants that were determined to not have vested during the period as a result of not meeting established financial performance thresholds. Stock Options The Black-Scholes option pricing model was used to estimate the fair values for options as of their grant date. There have been no options granted since 2019. There are currently 0.2 million options outstanding, all of which are vested and exercisable, with an average exercise price of $28.06, a weighted average contractual life of 2.6 years and an immaterial aggregate intrinsic value. Cash received by the Company upon exercise of options during the three and six months ended June 30, 2025 was $1 million. There were immaterial tax benefits on these exercises.
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OTHER EXPENSE (INCOME), NET |
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OTHER EXPENSE (INCOME), NET | OTHER EXPENSE (INCOME), NET
(1) Debt extinguishment and refinancing-related costs include third-party fees incurred and the loss on extinguishment associated with the write-off of unamortized deferred financing costs and original issue discounts in conjunction with the refinancing of our long-term borrowings.
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Our effective income tax rates for the six months ended June 30, 2025 and 2024 are as follows:
The lower effective tax rate for the six months ended June 30, 2025 was primarily due to the 2025 favorable impact of changes in unrecognized tax benefits, as well as the unfavorable 2024 tax impacts of the 2024 Transformation Initiative pre-tax charges, which did not repeat in 2025. The effective tax rate for the six months ended June 30, 2025 differs from the Bermuda statutory rate due to various items that impacted the effective rate both favorably and unfavorably. We recorded unfavorable impacts for earnings in jurisdictions where the statutory rate is higher than the Bermuda statutory rate and for changes in the valuation allowance. These adjustments were primarily offset by the favorable adjustments for decreases in unrecognized tax benefits and foreign currency exchange losses. For the six months ended June 30, 2025, the effect of the Organization for Economic Cooperation and Development’s Pillar Two framework, which imposes, among other items, a minimum tax rate of 15%, resulted in incremental tax expenses as compared to the same period in 2024. The incremental increase did not have a significant impact on our condensed consolidated financial statements for the six months ended June 30, 2025. We will continue to monitor the implementation of Pillar Two by additional jurisdictions and will evaluate the potential impact on our consolidated financial statements. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. We are currently evaluating the provisions of the new legislation and the potential effects on our estimated annual effective tax rate and cash tax position for the year ending December 31, 2025.
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NET INCOME PER COMMON SHARE |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME PER COMMON SHARE | NET INCOME PER COMMON SHARE Basic net income per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per common share includes the effect of potential dilution from the hypothetical exercise of outstanding stock options and vesting of restricted stock units and performance share units. A reconciliation of our basic and diluted net income per common share is as follows:
(1) Basic earnings per share and diluted earnings per share are calculated based on full precision. Figures in the table may not recalculate due to rounding. The number of anti-dilutive shares that have been excluded in the computation of diluted net income per share for the three and six months ended June 30, 2025 and 2024 was 0.3 million, 0.2 million, 0.2 million and 0.1 million, respectively.
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ACCOUNTS AND NOTES RECEIVABLE, NET |
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS AND NOTES RECEIVABLE, NET | ACCOUNTS AND NOTES RECEIVABLE, NET Trade accounts receivable are stated at the amount we expect to collect. We maintain allowances for doubtful accounts for estimated losses by applying historical loss percentages, combined with reasonable and supportable forecasts of future losses, to respective aging categories. Management considers the following factors in developing its current estimate of expected credit losses: customer credit-worthiness, past transaction history with the customer, current economic industry trends, changes in market or regulatory matters, changes in geopolitical matters, changes in customer payment terms, and other macroeconomic factors.
(1) Allowance for doubtful accounts was $30 million and $25 million at June 30, 2025 and December 31, 2024, respectively. (2) Includes $28 million and $29 million at June 30, 2025 and December 31, 2024, respectively, of insurance recoveries related to an operational matter discussed further in Note 5. Bad debt expense of $3 million, $6 million, $3 million and $4 million was included within selling, general and administrative expenses and other operating charges for the three and six months ended June 30, 2025 and 2024, respectively.
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INVENTORIES |
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES
Inventory reserves were $22 million and $17 million at June 30, 2025 and December 31, 2024, respectively.
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PROPERTY, PLANT AND EQUIPMENT, NET |
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PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET
Depreciation expense amounted to $33 million, $64 million, $31 million and $62 million for the three and six months ended June 30, 2025 and 2024, respectively.
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SUPPLIER FINANCE PROGRAMS |
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Jun. 30, 2025 | |
Payables and Accruals [Abstract] | |
SUPPLIER FINANCE PROGRAMS | SUPPLIER FINANCE PROGRAMS We maintain a voluntary supply chain financing (“SCF”) program with a global financial institution, which allows a select group of suppliers to sell their receivables to the participating financial institution at the discretion of both parties on terms that are negotiated between the supplier and the financial institution. The supplier invoices that have been confirmed as valid under the program are paid by us to the financial institution according to the terms we have with the supplier. Amounts outstanding under the SCF program were $32 million and $22 million at June 30, 2025 and December 31, 2024, respectively. We also participate in a virtual card program with a global financial institution, in which we pay supplier invoices on the due date using a Virtual Card Account (“VCA”) and subsequently pay the balance in full 25 days after the billing statement date of the VCA. The program allows for suppliers to receive an accelerated payment for a fee at each supplier's discretion. Fees paid by our suppliers are negotiated directly with the financial institution without our involvement. Amounts outstanding under the VCA program were $7 million and $6 million at June 30, 2025 and December 31, 2024, respectively. The payment terms we have with our suppliers who participate in the SCF and VCA programs are consistent with the typical terms we have with our suppliers who do not participate. These financing arrangements are included in accounts payable within the condensed consolidated balance sheets and the associated payments are included in operating activities within the condensed consolidated statements of cash flows. We have a supplier financing program in China which is utilized to finance the purchases of goods and services from our suppliers through local banking institutions. The payment terms under the program vary, but the program has a weighted average maturity date that is approximately 90 days from each respective financing inception. These financing arrangements are included in the current portion of borrowings within the condensed consolidated balance sheets and at the time of issuance each transaction is treated as a non-cash financing activity within the condensed consolidated statements of cash flows. Upon settlement of the financing, the cash outflow is classified as a financing activity within the condensed consolidated statements of cash flows. There were no balances outstanding under this program at both June 30, 2025 and June 30, 2024. There were no cash outflows under this program for the six months ended June 30, 2025 and $4 million of cash outflows for the six months ended June 30, 2024.
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BORROWINGS |
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BORROWINGS | BORROWINGS Borrowings are summarized as follows:
Our senior secured credit facilities (the “Senior Secured Credit Facilities”) consist of a term loan due 2029 (the “2029 Dollar Term Loans”) and a revolving credit facility due 2029 (the “Revolving Credit Facility”) that is governed by a credit agreement (as amended, the “Credit Agreement”). Revolving Credit Facility At June 30, 2025 and December 31, 2024, letters of credit issued under the Revolving Credit Facility totaled $21 million and $22 million, respectively, which reduced the availability under the Revolving Credit Facility as of such dates. Availability under the Revolving Credit Facility was $779 million and $778 million at June 30, 2025 and December 31, 2024, respectively. The letters of credit issued under the Revolving Credit Facility include $14 million that secures Customer Obligation Guarantees at both June 30, 2025 and December 31, 2024. Future repayments Below is a schedule of required future repayments of all borrowings outstanding at June 30, 2025.
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS Fair value of financial instruments Equity securities with readily determinable fair values - Balances of equity securities are recorded within other assets, with any changes in fair value recorded within other expense (income), net. The fair values of equity securities are based upon quoted market prices, which are considered Level 1 inputs. Long-term borrowings - The estimated fair values of these borrowings are based on recent trades, as reported by a third-party pricing service. Due to the infrequency of trades, these inputs are considered to be Level 2 inputs. Derivative instruments - The Company’s interest rate swaps, cross-currency swaps and foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are included in the Level 2 hierarchy. Fair value of contingent consideration Contingent consideration is valued using a probability-weighted expected payment method that considers the timing of expected future cash flows and the probability of whether key elements of the contingent event are completed. The fair value of contingent consideration is valued at each balance sheet date, until amounts become payable, with adjustments recorded within other expense (income), net in the condensed consolidated statements of operations. Due to the significant unobservable inputs used in the valuations, these liabilities are categorized within Level 3 of the fair value hierarchy. The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at June 30, 2025 and December 31, 2024.
(1) Net investment hedge (2) Cash flow hedge The table below presents a roll forward of activity for the Level 3 liabilities for the six months ended June 30, 2025.
Derivative Financial Instruments We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only, and we do not enter into derivative instruments for speculative purposes. Derivative Instruments Qualifying and Designated as Cash Flow and Net Investment Hedges The following table sets forth the locations and amounts recognized during the three and six months ended June 30, 2025 and 2024 for the Company's cash flow and net investment hedges.
Derivative Instruments Not Designated as Cash Flow and Net Investment Hedges We periodically enter into foreign currency forward and option contracts to reduce market risk and hedge our balance sheet exposures and cash flows for subsidiaries with exposures denominated in currencies different from the functional currency of the relevant subsidiary. These contracts have not been designated as hedges and all gains and losses are marked to market through other expense (income), net in the condensed consolidated statements of operations. Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows:
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SEGMENTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENTS | SEGMENTS The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and (iii) that has available discrete financial information. We have two operating segments, which are also our reportable segments: Performance Coatings and Mobility Coatings. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Our CODM is identified as the Chief Executive Officer because he has final authority over performance assessment and resource allocation decisions. Our segments are based on the type and concentration of customers served, service requirements, methods of distribution and major product lines. Through our Performance Coatings segment, we provide high-quality liquid and powder coatings solutions to both large regional and global original equipment manufacturers (“OEMs”) and to a fragmented and local customer base. These customers comprise independent or multi-shop operator body shops as well as a wide variety of industrial manufacturers. We are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems. The end-markets and reporting units within this segment are refinish and industrial. Through our Mobility Coatings segment, we provide coatings technologies for light vehicle and commercial vehicle OEMs. These global customers are faced with evolving megatrends in electrification, sustainability, personalization and autonomous driving that require a high level of technical expertise. The OEMs require efficient, environmentally responsible coatings systems that can be applied with a high degree of precision, consistency and speed. The end-markets and reporting units within this segment are light vehicle and commercial vehicle. Segment Adjusted EBITDA is the primary measure used by our CODM to evaluate financial performance of the operating segments and allocate resources and is therefore our measure of segment profitability in accordance with GAAP under ASC 280, Segment Reporting. Asset information is not reviewed or included with our internal management reporting. Therefore, we have not disclosed asset information for each reportable segment. The following tables present relevant information of our reportable segments.
(1)The Company has no intercompany sales between segments. The following tables reconcile net sales to Segment Adjusted EBITDA for the periods presented:
(1) Certain amounts included in cost of goods sold on the consolidated statements of operations are excluded from Segment cost of goods sold regularly provided to the CODM. (2) Other segment items for both segments include certain cost of goods sold not regularly provided to the CODM, selling, general and administrative expenses, other operating charges, research and development expenses, and other expense (income), net. Certain amounts included in Segment cost of goods sold, including depreciation, are excluded from Segment Adjusted EBITDA and are adjusted for in other segment items. The following table reconciles Segment Adjusted EBITDA to income before income taxes for the periods presented:
Geographic Area Information: The following tables provide disaggregated information related to our net sales and long-lived assets. Net sales by region were as follows:
Net long-lived assets by region were as follows:
(1)Includes Mexico. (2)Net sales are attributed to countries based on the customer's location. Sales to customers in China represented approximately 11%, 12%, 11% and 10% of the total net sales for the three and six months ended June 30, 2025 and 2024, respectively. Sales to customers in Germany represented approximately 7% of the total for the three and six months ended June 30, 2025 and 2024. Sales to customers in Mexico represented approximately 6% of the total for the three and six months ended June 30, 2025 and 7% of the total for the three and six months ended June 30, 2024. Sales to customers in Canada, which is included in the North America region, represented approximately 3% of the total for the three and six months ended June 30, 2025 and 2024. (3)Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $228 million and $204 million at June 30, 2025 and December 31, 2024, respectively. China long-lived assets amounted to approximately $155 million and $156 million at June 30, 2025 and December 31, 2024, respectively. Mexico long-lived assets amounted to approximately $76 million and $63 million at June 30, 2025 and December 31, 2024, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $6 million at June 30, 2025 and December 31, 2024.
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS
The cumulative income tax benefit related to the adjustments for foreign exchange at June 30, 2025 was $7 million. The cumulative income tax benefit related to the adjustments for pension benefits at June 30, 2025 was $27 million. The cumulative income tax expense related to the adjustments for the unrealized loss on derivatives at June 30, 2025 was immaterial. See Note 16 for classification within the condensed consolidated statements of operations of the gains and losses on derivatives reclassified from AOCI.
The cumulative income tax expense related to the adjustments for foreign exchange at June 30, 2024 was $1 million. The cumulative income tax benefit related to the adjustments for pension benefits at June 30, 2024 was $29 million. The cumulative income tax expense related to the adjustments for the unrealized gain on derivatives at June 30, 2024 was immaterial. See Note 16 for classification within the condensed consolidated statements of operations of the gains and losses on derivatives reclassified from AOCI.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
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Pay vs Performance Disclosure | ||||
Net income to common shareholders | $ 109 | $ 112 | $ 208 | $ 153 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2025 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2025 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Guidance and Accounting Guidance and Disclosure Rules Issued But Not Yet Adopted | Recently Adopted Accounting Guidance In January 2024, we adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), which expands the disclosures about a public entity's reportable segments and the expenses of the entity’s reportable segments. This ASU does not impact our consolidated financial position, results of operations or cash flows. The required disclosures are included in Note 17. Accounting Guidance and Disclosure Rules Issued But Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740) to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid disclosures. The new standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company plans to adopt the guidance and include required enhanced disclosures in its consolidated financial statements for the year ending December 31, 2025. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), to improve disclosures about a public business entity's expenses and require more detailed information about the types of expenses in commonly presented expense captions, such as cost of sales, selling general and administrative expense and research and development. The new standard is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact of ASU 2024-03 on our financial statements.
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GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table shows changes in the carrying amount of goodwill from December 31, 2024 to June 30, 2025 by reportable segment:
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Schedule of Finite-lived and Indefinite-lived Intangible Assets by Major Class | The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
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Schedule of Finite-lived Intangible Assets, Future Amortization Expense | The estimated amortization expense related to the fair value of acquired intangible assets for the remainder of 2025 and each of the succeeding five years is:
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RESTRUCTURING (Tables) |
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The following table summarizes the activity related to the termination benefit reserves and expenses from December 31, 2024 to June 30, 2025:
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LONG-TERM EMPLOYEE BENEFITS (Tables) |
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following table sets forth the pre-tax components of net periodic benefit costs for our defined benefit plans for the three and six months ended June 30, 2025 and 2024:
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Units and Restricted Stock Awards Roll Forward |
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Schedule of Performance Stock Roll Forward |
(1) Activity during the six months ended June 30, 2025 rounds to zero.
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OTHER EXPENSE (INCOME), NET (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Expense (Income), Net |
(1) Debt extinguishment and refinancing-related costs include third-party fees incurred and the loss on extinguishment associated with the write-off of unamortized deferred financing costs and original issue discounts in conjunction with the refinancing of our long-term borrowings.
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INCOME TAXES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rates for the six months ended June 30, 2025 and 2024 are as follows:
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NET INCOME PER COMMON SHARE (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Net Income Per Common Share | A reconciliation of our basic and diluted net income per common share is as follows:
(1) Basic earnings per share and diluted earnings per share are calculated based on full precision. Figures in the table may not recalculate due to rounding.
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ACCOUNTS AND NOTES RECEIVABLE, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable |
(1) Allowance for doubtful accounts was $30 million and $25 million at June 30, 2025 and December 31, 2024, respectively. (2) Includes $28 million and $29 million at June 30, 2025 and December 31, 2024, respectively, of insurance recoveries related to an operational matter discussed further in Note 5.
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INVENTORIES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory |
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PROPERTY, PLANT AND EQUIPMENT, NET (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment |
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BORROWINGS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Borrowings are summarized as follows:
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Schedule of Maturities of Long-term Debt | Below is a schedule of required future repayments of all borrowings outstanding at June 30, 2025.
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FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS (Tables) |
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the fair values of our financial instruments measured on a recurring basis by level within the fair value hierarchy at June 30, 2025 and December 31, 2024.
(1) Net investment hedge (2) Cash flow hedge
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Schedule of Fair Value, Liability Activity | The table below presents a roll forward of activity for the Level 3 liabilities for the six months ended June 30, 2025.
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Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table sets forth the locations and amounts recognized during the three and six months ended June 30, 2025 and 2024 for the Company's cash flow and net investment hedges.
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Schedule of Derivatives Not Designated as Hedging Instruments | Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that have not been designated for hedge accounting treatment are recorded in earnings as follows:
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SEGMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables present relevant information of our reportable segments.
(1)The Company has no intercompany sales between segments. The following tables reconcile net sales to Segment Adjusted EBITDA for the periods presented:
(1) Certain amounts included in cost of goods sold on the consolidated statements of operations are excluded from Segment cost of goods sold regularly provided to the CODM. (2) Other segment items for both segments include certain cost of goods sold not regularly provided to the CODM, selling, general and administrative expenses, other operating charges, research and development expenses, and other expense (income), net. Certain amounts included in Segment cost of goods sold, including depreciation, are excluded from Segment Adjusted EBITDA and are adjusted for in other segment items.
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Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles Segment Adjusted EBITDA to income before income taxes for the periods presented:
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Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables provide disaggregated information related to our net sales and long-lived assets. Net sales by region were as follows:
Net long-lived assets by region were as follows:
(1)Includes Mexico. (2)Net sales are attributed to countries based on the customer's location. Sales to customers in China represented approximately 11%, 12%, 11% and 10% of the total net sales for the three and six months ended June 30, 2025 and 2024, respectively. Sales to customers in Germany represented approximately 7% of the total for the three and six months ended June 30, 2025 and 2024. Sales to customers in Mexico represented approximately 6% of the total for the three and six months ended June 30, 2025 and 7% of the total for the three and six months ended June 30, 2024. Sales to customers in Canada, which is included in the North America region, represented approximately 3% of the total for the three and six months ended June 30, 2025 and 2024. (3)Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $228 million and $204 million at June 30, 2025 and December 31, 2024, respectively. China long-lived assets amounted to approximately $155 million and $156 million at June 30, 2025 and December 31, 2024, respectively. Mexico long-lived assets amounted to approximately $76 million and $63 million at June 30, 2025 and December 31, 2024, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $6 million at June 30, 2025 and December 31, 2024.
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss |
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REVENUE (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
Dec. 31, 2024 |
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Revenue from Contract with Customer [Abstract] | |||||
Contract with customer, asset | $ 45 | $ 45 | $ 36 | ||
Contractual arrangements, useful life (in years) | 5 years | 5 years | |||
Capitalized contract cost, net | $ 193 | $ 193 | $ 169 | ||
Capitalized contract cost, amortization | $ 16 | $ 14 | $ 31 | $ 28 |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Dec. 31, 2024 |
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Goodwill [Line Items] | |||
Payment to acquire business | $ 6 | $ 0 | |
Customer Relationships | |||
Goodwill [Line Items] | |||
Weighted average amortization periods (in years) | 19 years | 19 years 1 month 6 days | |
Performance Coatings Segment Acquisition | |||
Goodwill [Line Items] | |||
Consideration transferred | $ 9 | ||
Payment to acquire business | 6 | ||
Cash acquired | $ 1 | ||
Weighted average amortization periods (in years) | 10 years | ||
Performance Coatings Segment Acquisition | Customer Relationships | |||
Goodwill [Line Items] | |||
Identifiable intangible assets | $ 5 |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2025
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,640 |
Goodwill from acquisitions | 2 |
Purchase accounting adjustments | 1 |
Foreign currency translation | 132 |
Goodwill, ending balance | 1,775 |
Performance Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,566 |
Goodwill from acquisitions | 2 |
Purchase accounting adjustments | 1 |
Foreign currency translation | 126 |
Goodwill, ending balance | 1,695 |
Mobility Coatings | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 74 |
Goodwill from acquisitions | 0 |
Purchase accounting adjustments | 0 |
Foreign currency translation | 6 |
Goodwill, ending balance | $ 80 |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Schedule of Finite-lived Intangible Assets, Future Amortization Expense (Details) $ in Millions |
Jun. 30, 2025
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2025 | $ 50 |
2026 | 100 |
2027 | 99 |
2028 | 85 |
2029 | 80 |
2030 | $ 80 |
RESTRUCTURING - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
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Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 49 | |||
Expenses, net of changes to estimates | $ 9 | $ 0 | 20 | $ 55 |
Payments made | (31) | |||
Foreign currency translation | 5 | |||
Ending balance | $ 43 | $ 43 |
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
Dec. 31, 2024 |
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Commitments and Contingencies Disclosure [Abstract] | |||||
Maximum exposure | $ 24 | $ 24 | $ 23 | ||
Current carrying value | 0 | 0 | 0 | ||
Operational matter | 0 | $ 0 | 0 | $ 0 | |
Insurance receivable | 28 | 28 | 29 | ||
Loss recorded as a liability | $ 25 | $ 25 | $ 27 |
LONG-TERM EMPLOYEE BENEFITS (Details) - Pension Plan - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
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Net periodic benefit cost: | ||||
Service cost | $ 2 | $ 3 | $ 3 | $ 4 |
Interest cost | 5 | 4 | 9 | 9 |
Expected return on plan assets | (3) | (3) | (5) | (6) |
Amortization of actuarial loss, net | 1 | 1 | 2 | 2 |
Net periodic benefit cost | $ 5 | $ 5 | $ 9 | $ 9 |
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) shares in Millions |
6 Months Ended |
---|---|
Jun. 30, 2025
$ / shares
shares
| |
Units (in millions) | |
Beginning balance (in shares) | shares | 1.0 |
Granted (in shares) | shares | 0.5 |
Vested (in shares) | shares | (0.4) |
Forfeited (in shares) | shares | (0.1) |
Ending balance (in shares) | shares | 1.0 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 31.43 |
Granted (in dollars per share) | $ / shares | 34.37 |
Vested (in dollars per share) | $ / shares | 30.69 |
Forfeited (in dollars per share) | $ / shares | 31.84 |
Ending balance (in dollars per share) | $ / shares | $ 33.13 |
STOCK-BASED COMPENSATION - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares shares in Millions |
6 Months Ended |
---|---|
Jun. 30, 2025
$ / shares
shares
| |
Units (in millions) | |
Beginning balance (in shares) | shares | 0.9 |
Granted (in shares) | shares | 0.3 |
Vested (in shares) | shares | 0.0 |
Forfeited (in shares) | shares | (0.2) |
Ending balance (in shares) | shares | 1.0 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 35.84 |
Granted (in dollars per share) | $ / shares | 39.70 |
Vested (in dollars per share) | $ / shares | 30.63 |
Forfeited (in dollars per share) | $ / shares | 32.53 |
Ending balance (in dollars per share) | $ / shares | $ 37.94 |
OTHER EXPENSE (INCOME), NET - Schedule of Other (Income) Expense, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Other Income and Expenses [Abstract] | ||||
Foreign exchange losses, net | $ 4 | $ 3 | $ 7 | $ 8 |
Debt extinguishment and refinancing-related costs | 0 | 0 | 0 | 3 |
Other miscellaneous expense (income), net | 1 | (4) | 1 | (4) |
Total | $ 5 | $ (1) | $ 8 | $ 7 |
INCOME TAXES (Details) |
6 Months Ended | |
---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Income Tax Disclosure [Abstract] | ||
Effective Tax Rate | 23.20% | 29.10% |
NET INCOME PER COMMON SHARE - Schedule of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Earnings Per Share [Abstract] | ||||
Net income to common shareholders | $ 109 | $ 112 | $ 208 | $ 153 |
Basic weighted average shares outstanding (in shares) | 217.6 | 219.9 | 217.9 | 220.2 |
Diluted weighted average shares outstanding (in shares) | 218.3 | 220.9 | 218.9 | 221.2 |
Net income per common share | ||||
Basic net income per share (in dollars per share) | $ 0.50 | $ 0.51 | $ 0.96 | $ 0.70 |
Diluted net income per share (in dollars per share) | $ 0.50 | $ 0.51 | $ 0.95 | $ 0.69 |
NET INCOME PER COMMON SHARE - Additional Information (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.3 | 0.2 | 0.2 | 0.1 |
ACCOUNTS AND NOTES RECEIVABLE, NET - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Millions |
Jun. 30, 2025 |
Dec. 31, 2024 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable - trade, net | $ 1,105 | $ 1,015 |
Notes receivable | 86 | 92 |
Other | 157 | 141 |
Total | 1,348 | 1,248 |
Allowance for doubtful accounts | 30 | 25 |
Insurance receivable | $ 28 | $ 29 |
ACCOUNTS AND NOTES RECEIVABLE, NET - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Receivables [Abstract] | ||||
Bad debt expense (benefit) net of recoveries | $ 3 | $ 3 | $ 6 | $ 4 |
INVENTORIES - Schedule of Inventory (Details) - USD ($) $ in Millions |
Jun. 30, 2025 |
Dec. 31, 2024 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 460 | $ 391 |
Semi-finished products | 134 | 124 |
Raw materials | 203 | 189 |
Stores and supplies | 34 | 30 |
Total | $ 831 | $ 734 |
INVENTORIES - Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2025 |
Dec. 31, 2024 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Inventory reserves | $ 22 | $ 17 |
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions |
Jun. 30, 2025 |
Dec. 31, 2024 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 2,647 | $ 2,454 |
Accumulated depreciation | (1,392) | (1,273) |
Property, plant and equipment, net | $ 1,255 | $ 1,181 |
PROPERTY, PLANT AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 33 | $ 31 | $ 64 | $ 62 |
SUPPLIER FINANCE PROGRAMS (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Dec. 31, 2024 |
|
Supplier Finance Program [Line Items] | |||
Short-term borrowings | $ 3 | $ 3 | |
Cash outflows | 0 | $ 5 | |
SCF Program | |||
Supplier Finance Program [Line Items] | |||
Supplier finance program, obligation | 32 | 22 | |
VCA Program | |||
Supplier Finance Program [Line Items] | |||
Supplier finance program, obligation | $ 7 | $ 6 | |
Supplier financing program obligation, payment term (in days) | 25 days | ||
Supplier Financing Arrangements | |||
Supplier Finance Program [Line Items] | |||
Debt term (in days) | 90 days | ||
Short-term borrowings | $ 0 | ||
Cash outflows | $ 0 | $ 4 |
BORROWINGS - Schedule of Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2025 |
Dec. 31, 2024 |
---|---|---|
Debt Instrument [Line Items] | ||
Short-term and other borrowings | $ 52 | $ 54 |
Unamortized original issue discount | (12) | (13) |
Unamortized deferred financing costs | (19) | (22) |
Total borrowings, net | 3,415 | 3,421 |
Short-term borrowings | 3 | 3 |
Current portion of long-term borrowings | 17 | 17 |
Long-term debt | 3,395 | 3,401 |
2029 Dollar Term Loans | ||
Debt Instrument [Line Items] | ||
Term loan | 1,694 | 1,702 |
2027 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 500 | 500 |
2029 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 700 | 700 |
2031 Dollar Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 500 | $ 500 |
BORROWINGS - Additional Information (Details) - Revolving Credit Facility - USD ($) $ in Millions |
Jun. 30, 2025 |
Dec. 31, 2024 |
---|---|---|
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 21 | $ 22 |
Line of credit facility, remaining borrowing capacity | 779 | 778 |
Customer Obligation Guarantees | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 14 | $ 14 |
BORROWINGS - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2025 |
Dec. 31, 2024 |
---|---|---|
Debt Disclosure [Abstract] | ||
Remainder of 2025 | $ 10 | |
2026 | 21 | |
2027 | 521 | |
2028 | 21 | |
2029 | 2,339 | |
Thereafter | 534 | |
Total borrowings | 3,446 | |
Unamortized original issue discount | (12) | $ (13) |
Unamortized deferred financing costs | (19) | (22) |
Total borrowings, net | $ 3,415 | $ 3,421 |
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Schedule of Liability Activity (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2025
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 2 |
Business acquisition | 1 |
Ending balance | $ 3 |
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Schedule of Instruments Not Designated as Hedge (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Foreign currency forward contracts | Interest expense, net | ||||
Derivative [Line Items] | ||||
Derivatives not designated as hedging | $ (17) | $ 0 | $ (22) | $ (4) |
SEGMENTS - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2025
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2025 |
Jun. 30, 2024 |
---|---|---|
Equity [Abstract] | ||
Cumulative income tax expense (benefit) on foreign exchange adjustments | $ (7) | $ 1 |
Cumulative income tax benefit on pension and postretirement benefit plans | 27 | 29 |
Cumulative income tax expense on derivatives | $ 0 | $ 0 |