AXALTA COATING SYSTEMS LTD., 10-K filed on 2/13/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Feb. 06, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-36733    
Entity Registrant Name AXALTA COATING SYSTEMS LTD.    
Entity Incorporation, State or Country Code D0    
Entity Tax Identification Number 98-1073028    
Entity Address, Address Line One 1050 Constitution Avenue    
Entity Address, City or Town Philadelphia    
Entity Address, State or Province PA    
Entity Address, Postal Zip Code 19112    
City Area Code 855    
Local Phone Number 547-1461    
Title of 12(b) Security Common Shares, $1.00 par value    
Trading Symbol AXTA    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 7,550
Entity Common Stock, Shares Outstanding   213,373,942  
Documents Incorporated by Reference
Part III incorporates information by reference from the registrant’s Proxy Statement for the 2026 Annual General Meeting of Members. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the close of the registrant’s fiscal year ended December 31, 2025.
   
Entity Central Index Key 0001616862    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) FY    
Amendment Flag false    
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Auditor Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Philadelphia, Pennsylvania
v3.25.4
Consolidated Statements of Operations - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Net sales $ 5,117.0 $ 5,276.0 $ 5,184.0
Cost of goods sold 3,355.0 3,478.0 3,566.0
Selling, general and administrative expenses 805.0 847.0 840.0
Other operating charges 53.0 79.0 28.0
Research and development expenses 71.0 74.0 74.0
Amortization of acquired intangibles 98.0 92.0 88.0
Income from operations 735.0 706.0 588.0
Interest expense, net 176.0 205.0 213.0
Other expense, net 13.0 5.0 20.0
Income before income taxes 546.0 496.0 355.0
Provision for income taxes 167.0 105.0 86.0
Net income 379.0 391.0 269.0
Less: Net income attributable to noncontrolling interests 1.0 0.0 2.0
Net income attributable to common shareholders $ 378.0 $ 391.0 $ 267.0
Basic net income per share (in dollars per share) $ 1.75 $ 1.78 $ 1.21
Diluted net income per share (in dollars per share) $ 1.74 $ 1.78 $ 1.21
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 379 $ 391 $ 269
Other comprehensive income (loss), before tax:      
Foreign currency translation adjustments 208 (142) 57
Unrealized gain (loss) on derivatives 1 (1) (2)
Unrealized (loss) gain on pension and other benefit plan obligations (9) 8 (49)
Other comprehensive income (loss), before tax 200 (135) 6
Income tax (benefit) expense related to items of other comprehensive income (2) 4 (15)
Other comprehensive income (loss), net of tax 202 (139) 21
Comprehensive income 581 252 290
Less: Comprehensive income (loss) attributable to noncontrolling interests 4 (1) 0
Comprehensive income attributable to controlling interests $ 577 $ 253 $ 290
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 657 $ 593
Restricted cash 3 3
Accounts and notes receivable, net 1,229 1,248
Inventories 756 734
Prepaid expenses and other current assets 170 145
Total current assets 2,815 2,723
Property, plant and equipment, net 1,299 1,181
Goodwill 1,795 1,640
Identifiable intangibles, net 1,147 1,149
Other assets 543 556
Total assets 7,599 7,249
Current liabilities:    
Accounts payable 637 659
Current portion of borrowings 20 20
Other accrued liabilities 712 675
Total current liabilities 1,369 1,354
Long-term borrowings 3,179 3,401
Accrued pensions 238 220
Deferred income taxes 171 151
Other liabilities 249 167
Total liabilities 5,206 5,293
Commitments and contingent liabilities (Note 5)
Shareholders’ equity    
Common shares, $1.00 par, 1,000.0 shares authorized, 255.1 and 254.5 shares issued at December 31, 2025 and 2024, respectively 255 255
Capital in excess of par 1,621 1,599
Retained earnings 2,055 1,677
Treasury shares, at cost, 41.7 and 36.4 shares at December 31, 2025 and 2024, respectively (1,202) (1,037)
Accumulated other comprehensive loss (383) (582)
Total Axalta shareholders’ equity 2,346 1,912
Noncontrolling interests 47 44
Total shareholders’ equity 2,393 1,956
Total liabilities and shareholders’ equity $ 7,599 $ 7,249
v3.25.4
Consolidated Statement of Changes in Stockholders Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Capital In Excess Of Par
Retained Earnings
Treasury Shares, at cost
Accumulated Other Comprehensive Loss
Non-controlling Interests
Beginning balance (in shares) at Dec. 31, 2022   220.6          
Beginning balance at Dec. 31, 2022 $ 1,500 $ 252 $ 1,537 $ 1,019 $ (887) $ (467) $ 46
Comprehensive income (loss):              
Net income 269     267     2
Net realized and unrealized gain (loss) on derivatives, net of tax (3)         (3)  
Long-term employee benefit plans, net of tax benefit (34)         (34)  
Foreign currency translation, net of tax 58         60 (2)
Comprehensive income 290     267   23  
Recognition of stock-based compensation 25   25        
Net shares issued under compensation plans (in shares)   1.3          
Net shares issued under compensation plans 8 $ 2 6        
Common stock purchases (in shares)   (1.8)          
Common stock purchases (50)       (50)    
Ending balance (in shares) at Dec. 31, 2023   220.1          
Ending balance at Dec. 31, 2023 1,773 $ 254 1,568 1,286 (937) (444) 46
Comprehensive income (loss):              
Net income 391     391      
Net realized and unrealized gain (loss) on derivatives, net of tax (1)         (1)  
Long-term employee benefit plans, net of tax benefit 6         6  
Foreign currency translation, net of tax (144)         (143) (1)
Comprehensive income 252     391   (138) (1)
Recognition of stock-based compensation 28   28        
Net shares issued under compensation plans (in shares)   0.8          
Net shares issued under compensation plans 4 $ 1 3        
Common stock purchases (in shares)   (2.8)          
Common stock purchases (100)       (100)   0
Dividends declared to noncontrolling interests (1)           (1)
Ending balance (in shares) at Dec. 31, 2024   218.1          
Ending balance at Dec. 31, 2024 1,956 $ 255 1,599 1,677 (1,037) (582) 44
Comprehensive income (loss):              
Net income 379     378     1
Net realized and unrealized gain (loss) on derivatives, net of tax 1         1  
Long-term employee benefit plans, net of tax benefit (7)         (7)  
Foreign currency translation, net of tax 208         205 3
Comprehensive income 581     378   199 4
Recognition of stock-based compensation 25   25        
Net shares issued under compensation plans (in shares)   0.6          
Net shares issued under compensation plans (3)   (3)        
Common stock purchases (in shares)   (5.3)          
Common stock purchases (165)       (165)    
Dividends declared to noncontrolling interests (1)           (1)
Ending balance (in shares) at Dec. 31, 2025   213.4          
Ending balance at Dec. 31, 2025 $ 2,393 $ 255 $ 1,621 $ 2,055 $ (1,202) $ (383) $ 47
v3.25.4
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]      
Gain (loss) on derivatives, tax expense $ 0 $ 0 $ 0
Long-term employee benefit plans, net of tax expense (benefit) (2) 2 (15)
Foreign currency translation, tax expense $ 0 $ 2 $ 0
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities:      
Net income $ 379.0 $ 391.0 $ 269.0
Adjustment to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 295.0 280.0 276.0
Amortization of deferred financing costs and original issue discount 8.0 7.0 9.0
Debt extinguishment and refinancing-related costs 2.0 5.0 10.0
Deferred income taxes 45.0 (17.0) (8.0)
Realized and unrealized foreign exchange losses, net 31.0 11.0 21.0
Stock-based compensation 25.0 28.0 26.0
Impairment charges 1.0 0.0 15.0
Interest income on swaps designated as net investment hedges (13.0) (15.0) (10.0)
Other non-cash, net 3.0 9.0 22.0
Changes in operating assets and liabilities:      
Trade accounts and notes receivable 97.0 (7.0) (119.0)
Inventories 33.0 12.0 103.0
Prepaid expenses and other assets (129.0) (130.0) (71.0)
Accounts payable (77.0) (49.0) 9.0
Other accrued liabilities (64.0) 36.0 29.0
Other liabilities 13.0 15.0 (6.0)
Cash provided by operating activities 649.0 576.0 575.0
Investing activities:      
Acquisitions, net of cash acquired (48.0) (301.0) (106.0)
Purchase of property, plant and equipment (196.0) (140.0) (138.0)
Interest proceeds on swaps designated as net investment hedges 13.0 15.0 10.0
Settlement proceeds on swaps designated as net investment hedges 0.0 0.0 29.0
Payments for loans to customers (10.0) (22.0) (3.0)
Other investing activities, net 29.0 8.0 2.0
Cash used for investing activities (212.0) (440.0) (206.0)
Financing activities:      
Proceeds from short-term borrowings 0.0 0.0 9.0
Proceeds from long-term borrowings 0.0 333.0 697.0
Payments on short-term borrowings 0.0 (5.0) (50.0)
Payments on long-term borrowings (230.0) (420.0) (904.0)
Financing-related costs (1.0) (6.0) (17.0)
Net cash flows associated with stock-based awards (3.0)    
Net cash flows associated with stock-based awards   4.0 8.0
Purchases of common stock (165.0) (100.0) (50.0)
Deferred acquisition-related consideration (1.0) (6.0) (8.0)
Other financing activities, net (1.0) (1.0) 0.0
Cash used for financing activities (401.0) (201.0) (315.0)
Increase (decrease) in cash and cash equivalents 36.0 (65.0) 54.0
Effect of exchange rate changes on cash 28.0 (42.0) (6.0)
Cash at beginning of period 596.0 703.0 655.0
Cash at end of period 660.0 596.0 703.0
Cash at end of period reconciliation:      
Cash and cash equivalents 657.0 593.0 700.0
Restricted cash 3.0 3.0 3.0
Cash at end of period 660.0 596.0 703.0
Cash paid during the year for:      
Interest, net of amounts capitalized 172.0 198.0 213.0
Income taxes, net of refunds 107.0 131.0 97.0
Non-cash investing activities:      
Accrued capital expenditures $ 26.0 $ 18.0 $ 13.0
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Millions
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Common shares, 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) 255.1 254.5
Treasury shares, at cost (in shares) 41.7 36.4
v3.25.4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying consolidated balance sheets of Axalta Coating Systems Ltd. (“Axalta,” the “Company,” “we,” “our” and “us”), at December 31, 2025 and 2024 and the related consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of cash flows and consolidated statements of changes in shareholders’ equity for the years ended December 31, 2025, 2024 and 2023 included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are audited.
Proposed Merger with Akzo Nobel N.V.
During November 2025, we entered into a Merger Agreement with Akzo Nobel N.V., a public company with limited liability incorporated under the laws of the Netherlands (“AkzoNobel”) providing for the combination of the Company and AkzoNobel in an all-stock merger. The combined company will be dual-headquartered in Amsterdam, the Netherlands and Philadelphia, Pennsylvania. The obligations of the Company and AkzoNobel to consummate the Merger are conditioned on the satisfaction or waiver of certain conditions, including regulatory and shareholder approval for both companies. The Company expects the transaction to close in late 2026 to early 2027.
Subject to the terms and conditions set forth in the Merger Agreement, at the Effective Time, each outstanding and issued ordinary share of the Company, par value $1.00 per share (other than any shares owned by the Company as treasury shares and any shares owned by AkzoNobel or any other direct or indirect wholly owned subsidiary of AkzoNobel), will be automatically converted into the right to receive 0.6539 (the “Exchange Ratio”) AkzoNobel ordinary shares, par value of €0.50 per share.
In the event of a termination of the Merger Agreement by the Company, the Company may be required to pay AkzoNobel a termination fee equal to €150 million. In the event of a termination of the Merger Agreement by AkzoNobel, AkzoNobel may be required to pay the Company a termination fee equal to €150 million.
Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which Axalta does not maintain control, but has the ability to exercise significant influence over operating and financial policies of the investee, are accounted for using the equity method of accounting. As a result, Axalta’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statements of operations within Net income attributable to common shareholders, and our share of these companies’ stockholders’ equity is included in the accompanying consolidated balance sheets within other assets. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material. We eliminated all intercompany accounts and transactions in the preparation of the accompanying consolidated financial statements.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. The estimates and assumptions include, but are not limited to, receivable and inventory valuations, derivative instruments, fixed asset valuations, valuations of goodwill and identifiable intangible assets, including analysis of impairment, valuations of long-term employee benefit obligations, income taxes, environmental matters, contingencies, litigation, stock-based compensation, restructuring and allocations of costs. Our estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. Actual results could differ materially from those estimates.
Accounting for Business Combinations
We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets, including separately identifiable intangible assets, and assumed liabilities at their acquisition date fair values. The method records any excess purchase price over the fair value of acquired net assets as goodwill. Included in the determination of the purchase price is the fair value of contingent consideration, if applicable, based on the terms and applicable targets described within the acquisition agreements (i.e., projected revenues or EBITDA). Subsequent to the acquisition date, the fair value of the contingent liability, if determined to be payable in cash, is revalued at each balance sheet date with adjustments recorded within earnings.
The determination of the fair value of assets acquired, liabilities assumed and noncontrolling interests involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the closing date of the acquisition. When necessary, we consult with external advisors to help determine fair value. For non-observable market values determined using Level 3 assumptions, we determine fair value using acceptable valuation principles, including most commonly the excess earnings method for customer relationships, relief from royalty method for technology and trademarks, cost method for inventory and a combination of cost and market methods for property, plant and equipment, as applicable.
We include the results of operations from the acquisition date in the financial statements for all businesses acquired.
Revenue Recognition
See Note 2 for disclosure of our revenue recognition accounting policy.
Cash, Cash Equivalents and Restricted Cash
Cash equivalents represent highly liquid investments considered readily convertible to known amounts of cash within three months or less from time of purchase. They are carried at cost plus accrued interest, which approximates fair value because of the short-term maturity of these instruments. Cash balances may exceed government insured limits in certain jurisdictions.
Restricted cash on our consolidated balance sheets represents cash used to secure certain customer guarantees.
Fair Value Measurements
GAAP defines a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
The following valuation techniques are used to measure fair value for assets and liabilities:
Level 1—Quoted market prices in active markets for identical assets or liabilities;
Level 2—Significant other observable inputs (i.e., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and
Level 3—Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability.
Derivatives and Hedging
The Company from time to time utilizes derivatives to manage exposures to currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or accumulated other comprehensive loss (“AOCI”), depending on the use of the derivative and whether it qualifies for hedge accounting treatment and is designated as such.
Gains and losses on derivatives that qualify and are designated as cash flow or net investment hedges are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income.
Gains and losses on derivatives qualifying and designated as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income.
Cash flows from derivatives are presented in the consolidated statements of cash flows in a manner consistent with the underlying transactions.
Receivables and Allowance for Doubtful Accounts
Receivables are carried at amounts that approximate fair value. Receivables are recognized net of an allowance for doubtful accounts receivable. The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the financial asset, based on historical experience, current conditions and reasonable forecasts of future economic conditions. Accounts receivable are written down or off when a portion or all of such account receivable is determined to be uncollectible.
Inventories
Inventories are valued at the lower of cost or net realizable value with cost being determined on the weighted average cost method. Elements of cost in inventories include:
raw materials,
direct labor, and
manufacturing and indirect overhead.
Stores and supplies are valued at the lower of cost or net realizable value; with cost generally determined by the weighted average cost method. Inventories deemed to have costs greater than their respective market values are reduced to net realizable value with a loss recorded in income in the period recognized.
Property, Plant and Equipment
Property, plant and equipment purchases are recorded at cost and are depreciated over the estimated useful life using the straight-line method starting on the date they are placed in service. See Note 14 for a range of estimated useful lives used for each property, plant and equipment class.
Software included in property, plant and equipment represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance and training costs are expensed in the period in which they are incurred.
Leases
See Note 6 for disclosure of our accounting policy for leases.
Goodwill and Other Identifiable Intangible Assets
Goodwill represents the excess of the purchase price over the fair values of the underlying net assets acquired in a business combination. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis as of October 1st; however, these tests are performed more frequently if events or changes in circumstances indicate that the asset may be impaired.
When testing goodwill and indefinite-lived intangible assets for impairment, we first have an option to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that an impairment exists. Such qualitative factors may include the evaluation of the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant asset-specific events. If based on this qualitative assessment we determine that an impairment is more likely than not, or if we elect not to perform a qualitative assessment, we would be required to perform a quantitative impairment test.
Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit, with respect to goodwill, and indefinite-lived intangible asset to its carrying value. If the fair value of the reporting unit or indefinite-lived intangible asset is less than the carrying value, the difference is recorded as an impairment loss not to exceed the amount of recorded goodwill or carrying value of the respective indefinite-lived intangible asset.
In 2025, as a result of the time lapsed since our last quantitative evaluation in 2022, we bypassed the qualitative evaluation and tested for impairment of the goodwill of our reporting units and our indefinite-lived intangible assets by performing a quantitative evaluation. The quantitative analysis concluded that all reporting units and indefinite-lived intangible assets had fair values substantially in excess of their carrying values.
Definite-lived intangible assets, such as technology, trademarks, customer relationships, and non-compete agreements, are amortized over their estimated useful lives, generally for periods ranging from 3 to 25 years. We evaluate these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable. The reasonableness of the useful lives of definite and indefinite-lived assets are regularly evaluated.
Impairment of Long-Lived Assets
The carrying value of long-lived assets to be held and used is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. Evaluation for impairment is done at the asset group level. The carrying value of long-lived asset groupings is considered impaired when the total projected undiscounted cash flows from the asset group is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset group. The fair value methodology used is an estimate of fair market value and is based on prices of similar asset groupings or other valuation methodologies, including present value techniques. Long-lived asset groupings to be disposed of other than by sale are classified as held for use until their disposal. Long-lived asset groupings to be disposed of by sale are classified as held for sale after all applicable attributes in the guidance are met and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived asset groupings classified as held for sale.
Research and Development
Research and development costs incurred in the normal course of business consist primarily of employee-related costs and are expensed as incurred. In-process research and development projects acquired in a business combination are recorded as intangible assets at their fair value as of the acquisition date, using Level 3 assumptions. Subsequent costs related to acquired in-process research and development projects are expensed as incurred. In-process research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. These indefinite-lived intangible assets are tested for impairment consistent with the impairment testing performed on other indefinite-lived intangible assets discussed above. Upon completion of the research and development process, the carrying value of acquired in-process research and development projects is reclassified as a finite-lived asset and is amortized over its useful life. Once amortization commences, these assets are tested for impairment consistent with long-lived assets as discussed above.
Environmental Liabilities and Expenditures
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued environmental liabilities are not discounted. Claims for recovery from third parties, if any, are reflected separately as an asset. We record recoveries at the earlier of when the gain is probable and reasonably estimable or realized.
Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized as property, plant and equipment and depreciated over their useful life.
Contingencies and Litigation
We accrue for liabilities related to contingencies, including the operational matter discussed in Note 5, and litigation matters when available information indicates that the liability is probable, and the amount can be reasonably estimated. Legal costs such as outside counsel fees and expenses are charged to expense in the period incurred.
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for tax losses, interest and tax credit carryforwards. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in net income in the period that includes the enactment date.
Where we do not intend to indefinitely reinvest earnings of our subsidiaries, we provide for income taxes and withholding taxes, where applicable, on unremitted earnings. We do not provide for income taxes on unremitted earnings of our subsidiaries that are intended to be indefinitely reinvested.
We recognize the benefit of an income tax position only if it is “more likely than not” that the tax position will be sustained. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized. Additionally, we recognize interest and penalties related to unrecognized tax benefits as a component of provision for income taxes. The current portion of unrecognized tax benefits is included in other accrued liabilities and the long-term portion is included in other liabilities in the consolidated balance sheets.
Foreign Currency Translation
Our reporting currency is the U.S. Dollar. In most cases, our non-U.S. based subsidiaries use their local currency as the functional currency for their respective business operations. Assets and liabilities of these operations are translated into U.S. Dollars at end-of-period exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Resulting cumulative translation adjustments are recorded as a component of shareholders’ equity in the accompanying consolidated balance sheets in AOCI.
Gains and losses from transactions denominated in currencies other than functional currencies are included in the consolidated statements of operations in other expense, net.
Employee Benefits
Defined benefit plans specify an amount of pension benefit that an employee will receive upon retirement, usually dependent on factors such as age, years of service and compensation. The obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of the future benefits that employees earn in return for their service in the current and prior periods. These benefits are then discounted to determine the present value of the obligations and are then adjusted for the impact of any unamortized prior service costs. The discount rate used is based upon market indicators in the region (generally, the yield on bonds that are denominated in the currency in which the benefits will be paid and that have maturity dates approximating the terms of the obligations). The calculations are performed by qualified actuaries using the projected unit credit method. The obligation of defined benefit plans recorded on our consolidated balance sheets is net of the current fair value of assets within each respective plan. See Note 7 for further information.
Stock-Based Compensation
We provide directors and certain employees stock-based compensation comprising restricted stock units (“RSUs”) and performance share units (“PSUs”). The instruments are measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a graded-vesting attribution basis over the requisite service period, inclusive of impacts of any current period modifications of previously granted awards. Compensation expense is recorded net of forfeitures, which we have elected to record in the period they occur.
Earnings per Common Share
Basic earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities; anti-dilutive securities are excluded from the calculation. These potentially dilutive securities are calculated under the treasury stock method and all outstanding stock options, RSUs, and PSUs are considered.
Recently Adopted Accounting Guidance
In December 2025, we adopted Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740), which enhances the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid disclosures. This ASU does not impact our consolidated financial position, results of operations or cash flows. The required disclosures are included in Note 10.
Accounting Guidance and Disclosure Rules Issued But Not Yet Adopted
In November 2024, the Financial Accounting Standards Board (“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.
In September 2025, the FASB issued ASU 2025-06, Intangibles Goodwill and Other Internal-Use Software (Subtopic 350-40), to enhance guidance for recognizing and measuring capitalizable costs associated with the development of internal-use software. The new standard is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of ASU 2025-06 on our financial statements.
v3.25.4
REVENUE
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
We recognize revenue at the point our contractual performance obligations with our customers are satisfied. This occurs at the point in time when control of our products transfers to the customer based on considerations of right to payment, transfer of legal title, physical possession, risks and rewards of ownership and customer acceptance. For the majority of our revenue, control transfers upon shipment of our products to our customers. Our remaining revenue is recorded upon delivery or consumption for our product sales or as incurred for services provided and royalties earned.
Revenue is measured as the amount of consideration we expect to receive in exchange for our products or services. Our contracts, including those subject to standard terms and conditions under multi-year agreements, are largely short-term in nature and each customer purchase order typically represents a contract with the delivery of coatings representing the only separate performance obligation.
For certain customer arrangements within our light vehicle, industrial and commercial vehicle end-markets, revenue is recognized upon shipment, as this is the point in time we have concluded that control of our product has transferred to our customer based on our considerations of the indicators of control in the contracts, including right of use and risk and reward of ownership. For consignment arrangements, revenue is recognized upon actual consumption by our customers, as this represents the point in time that control is determined to have transferred to the customer based on the contractual arrangement.
In our refinish end-market, our product sales are typically supplied through a network of distributors. Control transfers and revenue is recognized when our products are shipped to our distribution customers. Variable consideration in the form of price, less discounts and rebates, are estimated and recorded upon the shipment of our products based on our ability to make a reasonable estimate of the amounts expected to be received. The estimates of variable consideration involve significant assumptions based on the best estimates of inventory held by distributors, applicable pricing, as well as the use of historical actuals for sales, discounts and rebates, which may result in changes in estimates in the future.
The timing of payments associated with the above arrangements may differ from the timing associated with the satisfaction of our performance obligations. The period between the satisfaction of the performance obligation and the receipt of payment is dependent on terms and conditions specific to the customers. For transactions in which we expect, at contract inception, the period between the transfer of our products or services to our customer and when the customer pays for that good or service to be greater than one year, we adjust the promised amount of consideration for the effects of any significant financing components that materially change the amount of revenue under the contract.
All costs incurred directly in satisfaction of our performance obligations associated with revenue are reported in cost of goods sold on the statements of operations. We also provide certain customers with incremental up-front consideration, subject to clawback provisions, including Business Incentive Plan assets (“BIPs”), which is capitalized 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. At December 31, 2025 and 2024, the total carrying value of BIPs were $191 million and $169 million, respectively, and are presented within other assets in the consolidated balance sheets. For the years ended December 31, 2025, 2024 and 2023, $64 million, $59 million and $64 million, respectively, was amortized and reflected as reductions of net sales in the consolidated statements of operations.
We accrue for sales returns and other allowances based on our historical experience, as well as expectations based on current information relevant to our customers. We include the amounts billed to customers for shipping and handling fees in net sales and include costs incurred for the delivery of goods as cost of goods sold in the consolidated statement of operations.
Recognition of licensing and royalty income occurs at the point in time when agreed upon performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured.
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 consolidated balance sheets. The contract asset balances at December 31, 2025 and 2024 were $40 million and $36 million, respectively.
Revenue Streams
Our revenue streams are disaggregated based on the types of products and services offered in contracts with our customers, which are depicted in each of our four end-markets.
Refinish - We develop, market and supply a complete portfolio of innovative coatings systems and color matching technologies to facilitate faster automotive collision repairs relative to competing technologies. Our refinish products and systems include a range of coatings layers required to match the vehicle’s color and appearance, producing a repair surface indistinguishable from the adjacent surface.
Industrial - The industrial end-market comprises liquid and powder coatings used in a broad array of applications. We are also a leading global developer, manufacturer and supplier of functional and decorative liquid and powder coatings for a large number of diversified applications in the industrial end-market. We provide a full portfolio of products for applications including building products, construction, battery solutions, transportation and general metal finishing.
Light Vehicle - Light vehicle original equipment manufacturers (“OEMs”) select coatings providers based on their global ability to deliver core and advanced technological solutions that improve exterior appearance and durability and provide long-term corrosion protection. Customers also look for suppliers that offer sustainable solutions to aid in the customer portfolio transformation and can enhance process efficiency, improve productivity and provide technical support.
Commercial Vehicle - Sales in the commercial vehicle end-market are generated from a variety of applications including heavy-duty truck, medium-duty truck, bus and rail, motorcycles, marine and aviation, as well as related markets such as trailers, recreational vehicles and personal sport vehicles. Commercial vehicle OEMs select coatings providers on the basis of their ability to consistently deliver advanced technological solutions that improve exterior appearance, protection and durability and provide extensive color libraries and matching capabilities at the lowest total cost-in-use, while meeting stringent environmental requirements.
We also have other revenue streams which include immaterial revenues relative to the net sales from our four end-markets, comprising sales from royalties and services, primarily within our light vehicle and refinish end-markets.
See Note 20 for disaggregated net sales by end-market.
v3.25.4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
During the year ended December 31, 2025, we completed multiple strategic acquisitions in our Performance Coatings segment. These acquisitions were accounted for as business combinations with consolidated aggregate consideration of $58 million, of which $48 million was paid, net of $3 million of cash acquired. The overall impacts to our consolidated financial statements were not considered to be material, either individually or in aggregate. The fair value attributable to the consolidated identifiable intangible assets was $32 million, primarily comprising 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, 2023 to December 31, 2025 by reportable segment:
Performance
Coatings
Mobility
Coatings
Total
December 31, 2023$1,513 $78 $1,591 
Goodwill from acquisitions112 — 112 
Foreign currency translation(59)(4)(63)
December 31, 2024$1,566 $74 $1,640 
Goodwill from acquisitions19 — 19 
Foreign currency translation129 136 
December 31, 2025$1,714 $81 $1,795 
Identifiable Intangible Assets
The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
December 31, 2025Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology$154 $(103)$51 11.1
Trademarks—indefinite-lived275 — 275 Indefinite
Trademarks—definite-lived164 (87)77 14.1
Customer relationships1,375 (631)744 18.9
Total$1,968 $(821)$1,147 
December 31, 2024Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology$152 $(88)$64 11.1
Trademarks—indefinite-lived252 — 252 Indefinite
Trademarks—definite-lived154 (70)84 14.0
Customer relationships1,280 (531)749 19.1
Total$1,838 $(689)$1,149 
The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is:
2026$103 
2027$102 
2028$88 
2029$83 
2030$83 
v3.25.4
RESTRUCTURING
12 Months Ended
Dec. 31, 2025
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 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 in 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 $84 million in the aggregate, of which approximately $78 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 $11 million for the year ended December 31, 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 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 years ended December 31, 2025, 2024 and 2023, we incurred costs of $23 million, $65 million, and $4 million, respectively, for termination benefits, net of changes in estimates. The majority of our termination benefits are recorded within other operating charges in the consolidated statements of operations. The remaining payments associated with these actions are expected to be substantially completed within 12 months.
The following table summarizes the activity related to the termination benefit reserves and expenses for the years ended December 31, 2025, 2024 and 2023:
Balance at January 1, 2023$49 
Expense recorded
Payments made(37)
Foreign currency translation— 
Balance at December 31, 2023$16 
Expense recorded65 
Payments made(30)
Foreign currency translation(2)
Balance at December 31, 2024$49 
Expense recorded23 
Payments made(51)
Foreign currency translation
Balance at December 31, 2025$26 
v3.25.4
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 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 December 31, 2025 and 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 18. 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 December 31, 2025 or 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 years ended December 31, 2025 and 2024, expenses recorded relating to the operational matter were immaterial. At December 31, 2025 and 2024, we had $26 million and $29 million, respectively, recorded for estimated insurance receivables within accounts and notes receivable, net in the consolidated balance sheets. Liabilities of $24 million and $27 million are recorded as other accrued liabilities in the consolidated balance sheets at December 31, 2025 and 2024, respectively. The recorded probable losses remain an estimate, and actual costs arising from this matter could be materially lower or higher depending on, among other things, 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 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.
v3.25.4
LEASES
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
We have operating and finance leases for certain of our technology centers, warehouses, office spaces, land, and equipment. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The lease term is determined to be the non-cancelable period including any lessee renewal options that are considered to be reasonably certain of exercise. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company used judgment to determine an appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment. Lease expense for fixed lease payments on operating leases is recognized over the expected term on a straight-line basis, while lease expense for fixed lease payments on finance leases is recognized using the effective interest method.
Certain of our lease agreements include rental payments based on an index or are adjusted periodically for inflation. At lease inception, we make assumptions for certain factors (i.e., inflation rates) through the lease term. Changes to lease payments resulting from these factors are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, variable lease expense also includes elements of a contract that is based on usage during the term. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Supplemental balance sheet information related to leases is summarized as follows:
December 31,
20252024
AssetsClassification
Operating lease ROU assets, net
Other assets (1)
$112 $99 
Finance lease ROU assets, net
Property, plant and equipment, net (2)
44 47 
Total leased assets$156 $146 
Liabilities
Current
Operating lease liabilitiesOther accrued liabilities$31 $27 
Finance lease liabilitiesCurrent portion of borrowings
Noncurrent
Operating lease liabilitiesOther liabilities81 73 
Finance lease liabilitiesLong-term borrowings47 51 
Total lease liabilities$162 $154 
(1)     Operating lease assets are recorded net of accumulated amortization of $116 million and $89 million for the years ended December 31, 2025 and 2024, respectively.
(2)     Finance lease assets are recorded net of accumulated amortization of $31 million and $26 million for the years ended December 31, 2025 and 2024, respectively.
Components of lease expense are summarized as follows:
Year Ended December 31,
202520242023
Finance lease cost
Amortization of right-of-use assets$$$
Interest on lease liabilities
Operating lease cost43 39 39 
Variable lease cost
Short-term lease cost
Net lease cost$54 $51 $52 
Supplemental cash flow information related to leases is summarized as follows:
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$39 $39 $40 
Operating cash flows for finance leases$$$
Financing cash flows for finance leases$$$
Non-cash leasing activities:
ROU assets obtained in exchange for lease obligations - Operating leases (1)
$37 $23 $21 
(1)     Includes lease extensions and option exercises.
Lease term and discount rate information are summarized as follows:
Year Ended December 31,
20252024
Weighted average remaining lease term (years)
Operating leases5.54.6
Finance leases11.312.2
Weighted average discount rate
Operating leases5.0 %5.4 %
Finance leases5.3 %5.3 %
Maturities of lease liabilities as of December 31, 2025 are as follows:
Operating LeasesFinance Leases
Year
2026$37 $
202729 
202820 
202911 
2030
Thereafter21 40 
Total lease payments127 70 
Less: imputed interest15 20 
Present value of lease liabilities$112 $50 
LEASES LEASES
We have operating and finance leases for certain of our technology centers, warehouses, office spaces, land, and equipment. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The lease term is determined to be the non-cancelable period including any lessee renewal options that are considered to be reasonably certain of exercise. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company used judgment to determine an appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment. Lease expense for fixed lease payments on operating leases is recognized over the expected term on a straight-line basis, while lease expense for fixed lease payments on finance leases is recognized using the effective interest method.
Certain of our lease agreements include rental payments based on an index or are adjusted periodically for inflation. At lease inception, we make assumptions for certain factors (i.e., inflation rates) through the lease term. Changes to lease payments resulting from these factors are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, variable lease expense also includes elements of a contract that is based on usage during the term. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Supplemental balance sheet information related to leases is summarized as follows:
December 31,
20252024
AssetsClassification
Operating lease ROU assets, net
Other assets (1)
$112 $99 
Finance lease ROU assets, net
Property, plant and equipment, net (2)
44 47 
Total leased assets$156 $146 
Liabilities
Current
Operating lease liabilitiesOther accrued liabilities$31 $27 
Finance lease liabilitiesCurrent portion of borrowings
Noncurrent
Operating lease liabilitiesOther liabilities81 73 
Finance lease liabilitiesLong-term borrowings47 51 
Total lease liabilities$162 $154 
(1)     Operating lease assets are recorded net of accumulated amortization of $116 million and $89 million for the years ended December 31, 2025 and 2024, respectively.
(2)     Finance lease assets are recorded net of accumulated amortization of $31 million and $26 million for the years ended December 31, 2025 and 2024, respectively.
Components of lease expense are summarized as follows:
Year Ended December 31,
202520242023
Finance lease cost
Amortization of right-of-use assets$$$
Interest on lease liabilities
Operating lease cost43 39 39 
Variable lease cost
Short-term lease cost
Net lease cost$54 $51 $52 
Supplemental cash flow information related to leases is summarized as follows:
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$39 $39 $40 
Operating cash flows for finance leases$$$
Financing cash flows for finance leases$$$
Non-cash leasing activities:
ROU assets obtained in exchange for lease obligations - Operating leases (1)
$37 $23 $21 
(1)     Includes lease extensions and option exercises.
Lease term and discount rate information are summarized as follows:
Year Ended December 31,
20252024
Weighted average remaining lease term (years)
Operating leases5.54.6
Finance leases11.312.2
Weighted average discount rate
Operating leases5.0 %5.4 %
Finance leases5.3 %5.3 %
Maturities of lease liabilities as of December 31, 2025 are as follows:
Operating LeasesFinance Leases
Year
2026$37 $
202729 
202820 
202911 
2030
Thereafter21 40 
Total lease payments127 70 
Less: imputed interest15 20 
Present value of lease liabilities$112 $50 
v3.25.4
LONG-TERM EMPLOYEE BENEFITS
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
LONG-TERM EMPLOYEE BENEFITS LONG-TERM EMPLOYEE BENEFITS
Defined Benefit Pensions
Axalta has defined benefit plans that cover certain employees worldwide, with approximately 85% of the projected benefit obligation within the European region at December 31, 2025.
Obligations and Funded Status
The measurement date used to determine defined benefit obligations is December 31st each year. The following table sets forth the changes to the projected benefit obligations (“PBO”) and plan assets for the years ended December 31, 2025 and 2024 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2025 and 2024 for our defined benefit pension plans:
Year Ended December 31,
20252024
Change in benefit obligation:
Projected benefit obligation at beginning of year$468 $526 
Service cost
Interest cost19 19 
Participant contributions
Actuarial loss (gain), net(17)
Plan curtailments, settlements and special termination benefits(11)(9)
Benefits paid(29)(29)
Business combinations and other adjustments— 
Foreign currency translation49 (30)
Projected benefit obligation at end of year509 468 
Change in plan assets:
Fair value of plan assets at beginning of year258 281 
Actual return on plan assets— 
Employer contributions24 24 
Participant contributions
Benefits paid(29)(29)
Settlements(11)(9)
Foreign currency translation20 (11)
Fair value of plan assets at end of year268 258 
Funded status, net$(241)$(210)
Amounts recognized in the consolidated balance sheets consist of:
Other assets$14 $24 
Other accrued liabilities(17)(14)
Accrued pensions(238)(220)
Net amount recognized$(241)$(210)
The net actuarial (gain) loss for 2025 and 2024 was due primarily to fluctuations in the discount rates between years across the plans relative to the rates used in the preceding year to determine benefit obligations (see assumptions table below), which were caused by market volatility during the periods.
The PBO is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation (“ABO”) is the actuarial present value of benefits attributable to employee service rendered to date but does not include the effects of estimated future pay increases.
The following table reflects the ABO for all defined benefit plans at December 31, 2025 and 2024. Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets.
December 31,
20252024
ABO$485 $447 
Plans with PBO in excess of plan assets:
PBO$322 $303 
ABO$301 $283 
Fair value plan assets$68 $69 
Plans with ABO in excess of plan assets:
PBO$322 $293 
ABO$301 $275 
Fair value plan assets$68 $60 
The pre-tax amounts not yet reflected in net periodic benefit cost and included in AOCI include the following related to defined benefit plans:
Year Ended December 31,
20252024
Accumulated net actuarial losses$(99)$(93)
Accumulated prior service credit(1)
Total$(100)$(91)
The accumulated net actuarial losses relate primarily to differences between the actual net periodic expense and the expected net periodic expense resulting from differences in the significant assumptions, including return on assets, discount rates and compensation trends, used in these estimates. For individual plans in which the accumulated net actuarial gains or losses exceed 10% of the higher of the fair value of plan assets or the PBO at the beginning of the year, amortization of such excess has been included in net periodic benefit costs. The amortization period is the average remaining service period of active employees expected to receive benefits unless a plan is mostly inactive, in which case the amortization period is the average remaining life expectancy of the plan participants. Accumulated prior service credits are amortized over the future service periods of those employees who are active at the dates of the plan amendments and who are expected to receive 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 years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
202520242023
Components of net periodic benefit cost and amounts recognized in comprehensive income:
Net periodic benefit cost:
Service cost$$$
Interest cost19 19 19 
Expected return on plan assets(10)(12)(11)
Amortization of actuarial loss, net
Curtailment gain— (1)— 
Settlement gain— (1)— 
Net periodic benefit cost19 15 15 
Changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain), net(6)51 
Amortization of actuarial loss, net(3)(4)(1)
Prior service credit— — 
Curtailment gain— — 
Settlement gain— — 
Other adjustments— (1)
Total loss (gain) recognized in other comprehensive income(8)49 
Total recognized in net periodic benefit cost and comprehensive income$28 $$64 
Assumptions
We used the following assumptions in determining the benefit obligations and net periodic benefit cost of our defined benefit plans:
202520242023
Weighted average assumptions:
Discount rate to determine benefit obligation4.36 %4.06 %3.82 %
Discount rate to determine net cost4.06 %3.82 %4.37 %
Rate of future compensation increases to determine benefit obligation2.94 %2.89 %2.97 %
Rate of future compensation increases to determine net cost2.89 %2.97 %2.98 %
Rate of return on plan assets to determine net cost3.94 %4.47 %4.27 %
Cash balance interest credit rate to determine benefit obligation1.35 %1.08 %1.32 %
Cash balance interest credit rate to determine net cost1.08 %1.32 %1.96 %
The discount rates used reflect the expected future cash flow based on plan provisions, participant data and the currencies in which the expected future cash flows will occur. For the majority of our defined benefit obligations, we utilize prevailing long-term high quality corporate bond indices applicable to the respective country at the measurement date. In countries where established corporate bond markets do not exist, we utilize other index movement and duration analysis to determine discount rates. The assumptions of the long-term rate of return on plan assets reflect economic assumptions applicable to each country and assumptions related to the preliminary assessments regarding the type of investments to be held by the respective plans.
Estimated future benefit payments
The following reflects the total benefit payments expected to be paid for defined benefits:
Year ended December 31,Benefits
2026$35 
2027$37 
2028$38 
2029$44 
2030$45 
2031 - 2035$227 
Plan Assets
The defined benefit plans for our subsidiaries represent single-employer plans and the related plan assets are invested within separate trusts. Each of the single-employer plans is managed in accordance with the requirements of local laws and regulations governing defined benefit plans for the exclusive purpose of providing pension benefits to participants and their beneficiaries. Pension plan assets are typically held in a trust by financial institutions. Our established asset allocation targets are intended to achieve the plan’s investment strategies.
Equity securities include varying market capitalization levels. U.S. equity securities are primarily large-cap companies. Fixed income investments include corporate issued, government issued, and asset-backed securities. Corporate debt securities include a range of credit risk and industry diversification. Other investments include real estate and private market securities such as insurance contracts, interests in private equity, and venture capital partnerships. Assets measured using the net asset value (“NAV”) per share practical expedient include debt, asset-backed securities, hedge funds, and real estate funds. Debt asset-backed securities primarily consist of collateralized debt obligations. The market values for these assets are based on the NAV multiplied by the number of shares owned.
Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although we believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The Company’s investment strategy in pension plan assets is to generate earnings over an extended time to help fund the cost of benefits while maintaining an adequate level of diversification for a prudent level of risk. The table below summarizes the weighted average actual and target pension plan asset allocations at December 31st for all funded Axalta defined benefit plans.
Asset Category20252024Target Allocation
Equity securities
0-5%
5-10%
0-5%
Debt securities
5-10%
40-45%
5-10%
Real estate
0-5%
0-5%
0-5%
Other (1)
90-95%
45-50%
90-95%
(1)    Substantially all pension insurance contracts and cash and cash equivalents holdings.
The table below presents the fair values of the defined benefit plan assets by level within the fair value hierarchy, as described in Note 1, at December 31, 2025 and 2024, respectively. Defined benefit plan assets measured using NAV have not been categorized in the fair value hierarchy.
Fair value measurements at
December 31, 2025
TotalLevel 1Level 2Level 3
Asset Category:
Cash and cash equivalents$10 $10 $— $— 
U.S. equity securities— — 
Non-U.S. equity securities— — 
Debt securities—government issued10 — 
Debt securities—corporate issued— — 
Insurance contracts and other235 — 234 
Total carried at fair value$264 $26 $$234 
Investments measured at NAV
Total$268 
Fair value measurements at
December 31, 2024
TotalLevel 1Level 2Level 3
Asset Category:
Cash and cash equivalents$11 $11 $— $— 
U.S. equity securities14 14 — — 
Non-U.S. equity securities— — 
Debt securities—government issued77 50 26 
Debt securities—corporate issued31 21 10 — 
Insurance contracts and other109 — — 109 
Total carried at fair value$251 $105 $36 $110 
Investments measured at NAV
Total$258 
Level 3 assets are primarily insurance contracts pledged on behalf of employees with benefits in certain countries, ownership interests in investment partnerships, trusts that own private market securities and other debt and equity investments. The fair values of our insurance contracts are determined based on the cash surrender value or the present value of the expected future benefits to be paid under the contract, discounted at a rate consistent with the related benefit obligation. Debt and equity securities consist primarily of small investments in other investments that are valued at different frequencies based on the value of the underlying investments. The table below presents a roll forward of activity for these assets for the years ended December 31, 2025 and 2024. The transfers presented below during 2024 relate to de-risking activities in certain plans.
Level 3 assets
TotalInsurance contracts and otherDebt and equity
Ending balance at December 31, 2023$126 $116 $10 
Realized (loss)(8)(7)(1)
Purchases, sales, issues and settlements(5)(2)(3)
Transfers (out of) into Level 3(3)(5)
Ending balance at December 31, 2024$110 $109 $
Change in unrealized gain17 17 — 
Purchases, sales, issues and settlements107 108 (1)
Ending balance at December 31, 2025$234 $234 $— 
Assumptions and Sensitivities
The discount rate is determined as of each measurement date, based on a review of yield rates associated with long-term, high-quality corporate bonds. The calculation separately discounts benefit payments using the spot rates from a long-term, high-quality corporate bond yield curve.
The long-term rate of return assumption represents the expected average rate of earnings on the funds invested to provide for the benefits included in the benefit obligations. The long-term rate of return assumption is determined based on a number of factors, including historical market index returns, the anticipated long-term asset allocation of the plans, historical plan return data, plan expenses and the potential to outperform market index returns. For 2026, the expected long-term rate of return is 4.13%.
Anticipated Contributions to Defined Benefit Plans
For funded pension plans, our funding policy is to fund amounts for pension plans sufficient to meet minimum requirements set forth in applicable benefit laws and local tax laws. Based on the same assumptions used to measure our benefit obligations at December 31, 2025, we expect to contribute $7 million to our defined benefit plans during 2026.
Defined Contribution Plans
The Company sponsors defined contribution plans in both its U.S. and non-U.S. subsidiaries, under which salaried and certain hourly employees may defer a portion of their compensation. Eligible participants may contribute to the plan up to the allowable amount of their regular compensation before taxes, as determined by the plan. All contributions and Company matches are invested at the direction of the employee. Company matching contributions vest immediately and aggregated to $46 million, $44 million and $56 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
STOCK-BASED COMPENSATION
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
During the years ended December 31, 2025, 2024 and 2023, we recognized $25 million, $28 million and $26 million, respectively, in stock-based compensation expense, which was allocated between cost of goods sold and selling, general and administrative expenses in the consolidated statements of operations. We recognized tax benefits on stock-based compensation of $2 million for the year ended December 31, 2025 and $3 million for the years ended December 31, 2024 and 2023.
Description of Equity Incentive Plan
In 2014, the Board of Directors (the “Board”) approved the Axalta Coating Systems Ltd. 2014 Incentive Award Plan, as amended and restated including in 2023 (as so amended and restated, the “2014 Plan”), which reserved additional shares of common stock of the Company for issuance to employees, directors and consultants. The 2014 Plan provides for the issuance of stock options, restricted stock or other stock-based awards. All awards granted pursuant to the 2014 Plan must be authorized by the Board or a designated committee thereof. The Board has generally delegated responsibility for administering the 2014 Plan to the Compensation Committee.
The terms of the stock options may vary with each grant and are determined by the Compensation Committee within the guidelines of the 2014 Plan. Option life cannot exceed ten years, and the Company may settle option exercises by issuing new shares, treasury shares or shares purchased on the open market.
During 2025, we granted RSUs to directors and certain employees and PSUs to certain employees. All awards were granted under the 2014 Plan. The PSUs are subject to certain performance and market conditions, in addition to the service-based vesting conditions.
During 2025, the Company withheld shares and used cash to settle certain employees’ tax obligation resulting from the vesting of awards in the amount of $4 million.
Restricted Stock Units
During the year ended December 31, 2025, we granted 0.6 million RSUs. A majority of these awards vest ratably over three years.
A summary of RSU activity as of and for the year ended December 31, 2025 is presented below:
Restricted Stock UnitsUnits
(in millions)
Weighted Average
Fair Value
Outstanding at January 1, 20251.0 $31.43 
Granted0.6 $33.79 
Vested(0.5)$30.86 
Forfeited(0.2)$32.97 
Outstanding at December 31, 20250.9 $32.91 
At December 31, 2025, there was $11 million of unamortized expense relating to unvested RSUs that is expected to be amortized over a weighted average period of 1.4 years.
The intrinsic value of RSU awards vested and released during 2025, 2024 and 2023 was $18 million, $23 million and $26 million, respectively. The total fair value of awards vested during 2025, 2024 and 2023 was $16 million, $20 million and $19 million, respectively. Tax benefits on these vested awards were immaterial.
Performance Share Units
During the years ended December 31, 2025, 2024 and 2023, the Company granted PSUs to certain employees of the Company as part of their annual equity compensation award.
The outstanding PSU grants are split between those with a performance condition related to profitability and those with a market condition related to total shareholder return (“TSR”) relative to the TSR of a selected industry peer group, with all such PSUs being subject to a three-year service condition and a cumulative three-year performance period.
The actual number of shares awarded for the outstanding PSU grants will be between zero and 200% of the target award amount.
A summary of PSU activity as of and for the year ended December 31, 2025 is presented below:
Performance Share UnitsUnits
(in millions)
Weighted Average
Fair Value
Outstanding at January 1, 20250.9 $35.84 
Granted0.3 $39.67 
Vested (1)
— $30.85 
Forfeited(0.2)$33.52 
Outstanding at December 31, 20251.0 $37.94 
(1)    Activity during the year ended December 31, 2025 rounds to zero.
At December 31, 2025, there was $13 million of unamortized expense relating to unvested PSUs that is expected to be amortized over a weighted average period of 1.7 years. The forfeitures include PSUs that vested below threshold payout.
The intrinsic value of PSU awards vested and released during 2025, 2024 and 2023 was $2 million, $1 million and $0 million, respectively. The total fair value of awards vested during in each 2025 and 2024 was $1 million and in 2023 was $0 million. There were no tax benefits on these vested awards.
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 0.1 million options outstanding, all of which are vested and exercisable, with an average exercise price of $28.68, a weighted average contractual life of 2.04 years and an aggregate intrinsic value of $1 million.
Cash received by the Company upon exercise of options in 2025 was $1 million. There were immaterial tax expenses on these exercises. For the years ended December 31, 2025, 2024 and 2023, the intrinsic value of options exercised was $0 million, $2 million and $3 million, respectively.
v3.25.4
OTHER EXPENSE , NET
12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
OTHER EXPENSE , NET OTHER EXPENSE, NET
Year Ended December 31,
202520242023
Foreign exchange losses, net$15 $11 $23 
Debt extinguishment and refinancing-related costs (1)
10 
Other miscellaneous income, net(4)(11)(13)
Total$13 $$20 
(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 restructuring and refinancing of our long-term borrowings, as discussed further in Note 18.
v3.25.4
INCOME TAXES
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
On December 27, 2023, the Government of Bermuda enacted the Bermuda Corporate Income Tax Act (“Bermuda CITA”), which imposes a 15% corporate income tax effective for tax years beginning on or after January 1, 2025.
For the year ended December 31, 2025, the domestic components presented represent Bermuda, our country of incorporation. For the years ended December 31, 2024, and 2023, the domestic components presented represent the United States. Prior to 2025, we reflected the United States as the domestic component, which we believe was more meaningful to the reader due to the significance of our operations in the United States during the years when Bermuda did not impose a corporate income tax.
The Company’s operations in Switzerland are subject to reduced tax rates through December 31, 2026, as long as certain conditions are met. The tax benefit attributable to this tax holiday was $6 million, $4 million, and $4 million for the years ended December 31, 2025, 2024, and 2023, respectively. The tax effect of the holiday on diluted net income per common share was $0.03, $0.02, and $0.01 for the years ended December 31, 2025, 2024, and 2023.
Domestic and Foreign Components of Income Before Income Taxes
Year Ended December 31,
202520242023
Domestic (1)
$29 $203 $150 
Foreign517 293 205 
Total$546 $496 $355 
(1)For the year ended December 31, 2025, the domestic income before income taxes represents Bermuda operations. For the years ended December 31, 2024, and 2023, the domestic income before income taxes represent United States operations.
Provision (Benefit) for Income Taxes
Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
CurrentDeferredTotalCurrentDeferredTotalCurrentDeferredTotal
Domestic (1)
$$24 $25 $27 $$34 $33 $(9)$24 
Domestic State (1)
— — — (1)(2)
Foreign121 21 142 87 (23)64 52 55 
Total$122 $45 $167 $122 $(17)$105 $94 $(8)$86 
(1)For the year ended December 31, 2025, the domestic federal and state provision (benefit) for income taxes represent Bermuda operations. Bermuda does not impose a state income tax. For the years ended December 31, 2024, and 2023, the domestic federal and state provision (benefit) for income taxes represent United States operations.
Income Tax Paid by Jurisdiction
Year Ended December 31,
2025
Brazil
China22 
India
Mexico14 
United States
29 
Other foreign jurisdictions (1)
28 
Total Income Tax Paid
$107 
(1)All other foreign jurisdictions do not individually exceed $5 million.
Reconciliation to U.S. Statutory Rate
For the year ended December 31, 2025, the effective tax rate reconciliation is presented reflecting the differences between the Bermuda income tax rate and the effective tax rate for the Company. For the years ended December 31, 2024, and 2023, the effective tax rate reconciliation is presented reflecting the differences between the United States federal income tax rate and the effective tax rate for the Company.

Year Ended December 31,
2025
Statutory Bermuda federal income tax rate$82 15.0 %
Foreign Tax Effects
Brazil
Statutory tax rate differences between Brazil and Bermuda
0.8 
Foreign taxes0.8 
China
Statutory tax rate differences between China and Bermuda
1.6 
Other
0.6 
Germany
Trade tax
0.9 
Enactment of new tax laws(5)(0.9)
Other
(1)(0.2)
Luxembourg
Nondeductible foreign exchange gains and losses
10 1.8 
Other
(3)(0.5)
Netherlands
Statutory tax rate differences between Netherlands and Bermuda
(4)(0.7)
Nondeductible foreign exchange gains and losses
1.3 
Other
(5)(0.9)
Switzerland
Statutory tax rate differences between Switzerland and Bermuda
(20)(3.7)
Cantonal tax
1.3 
Foreign taxes0.8 
Deductible impairment loss(5)(0.9)
Other
(2)(0.4)
United Kingdom
Statutory tax rate differences between the United Kingdom and Bermuda
(6)(1.1)
Changes in valuation allowance
0.5 
United States
Statutory tax rate differences between United States and Bermuda
1.3 
State and local income taxes, net federal tax effect
0.7 
Tax credits
(6)(1.1)
Nontaxable and nondeductible items
1.6 
Mexico
1.3 
Other
16 2.8 
Changes in valuation allowance
19 3.5 
Nontaxable and nondeductible items
0.2 
Changes in unrecognized tax benefits
23 4.2 
Total income tax provision / effective tax rate
$167 30.6 %
Year Ended December 31,
20242023
Statutory U.S. federal income tax rate$104 21.0 %$75 21.0 %
Foreign income taxed at rates other than U.S. statutory rate
(25)(5.1)(29)(8.2)
Changes in valuation allowances
14 2.7 38 10.7 
Foreign exchange gains and losses(14)(2.7)0.2 
Unrecognized tax benefits 13 2.6 (6)(1.7)
Foreign taxes1.6 2.5 
Non-deductible expenses1.5 1.9 
Tax credits(7)(1.4)(9)(2.5)
U.S. state and local taxes, net1.2 1.5 
Bermuda CITA(27)(5.5)— — 
Other, net (1)
26 5.2 (5)(1.1)
Total income tax provision / effective tax rate
$105 21.1 %$86 24.3 %
(1)In 2024, the Company recorded a tax expense of $26 million in the Netherlands related to the write off of an expired net operating loss carryforward, which is fully offset by a tax benefit of $26 million for the decrease to the valuation allowance.
Deferred Tax Balances
Year Ended December 31,
20252024
Deferred tax asset
Tax loss, credit and interest carryforwards
$437 $361 
Compensation and employee benefits
62 68 
Accruals and other reserves
38 34 
Research and development capitalization
35 53 
Equity investment and other securities
— 
Leases41 38 
Other
Total deferred tax assets626 555 
Less: valuation allowance(337)(250)
Total deferred tax assets, net of valuation allowance289 305 
Deferred tax liabilities
Goodwill and intangibles
(164)(126)
Property, plant and equipment
(146)(143)
Unremitted earnings
(16)(14)
Accounts receivable and other assets(15)(7)
Equity investment and other securities— (2)
Total deferred tax liabilities(341)(292)
Net deferred tax (liability) asset$(52)$13 
Non-current assets$119 $164 
Non-current liability(171)(151)
Net deferred tax (liability) asset$(52)$13 
At December 31, 2025 and 2024, deferred income taxes of approximately $16 million and $14 million, respectively, have been provided on unremitted earnings of all subsidiaries and related companies to the extent that such earnings are not deemed to be permanently reinvested and cannot be repatriated in a tax-free manner. At December 31, 2025, and 2024, we have not recorded a deferred tax liability related to withholding taxes of approximately $147 million and $95 million, respectively, on unremitted earnings of subsidiaries that are deemed permanently reinvested.
Tax loss, tax credit and interest carryforwardsYear Ended December 31,
20252024
Tax loss carryforwards (tax effected) (1)
Expire within 10 years
$49 $20 
Expire after 10 years or indefinite carryforward
201 175 
Tax credit carryforwards
Expire within 10 years
Expire after 10 years or indefinite carryforward
Interest carryforwards
Expire within 10 years
Expire after 10 years or indefinite carryforward
178 163 
Total tax loss, tax credit and interest carryforwards$437 $361 
(1)Net of unrecognized tax benefits
Utilization of our tax loss, tax credit and interest carryforwards may be subject to annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state and foreign provisions. Such annual limitations could result in the expiration of the tax loss, tax credit and interest carryforwards before their utilization.
Valuation allowance
Year Ended December 31,
20252024
Domestic (1)
$27 $
Foreign310 246 
Total valuation allowance$337 $250 
(1)For the year ended December 31, 2025, the domestic valuation allowance represents Bermuda operations. For the year ended December 31,2024, the domestic valuation allowance represents the U.S. operations.
Valuation allowances relate primarily to the tax loss, tax credit and interest carryforwards, as well as equity investment in foreign jurisdictions, where the Company does not believe the associated net deferred tax assets will be realized, due to expiration, limitation or insufficient future taxable income. The foreign valuation allowance primarily relates to tax loss carryforwards and interest carryforwards from operations in Luxembourg, Netherlands, and the United Kingdom, of $295 million and $240 million at December 31, 2025 and 2024, respectively.
Total Gross Unrecognized Tax Benefits
Year Ended December 31,
202520242023
Total gross unrecognized tax benefits at January 1$107 $96 $98 
Increases related to acquisitions— — — 
Increases related to positions taken on items from prior years
28 
Decreases related to positions taken on items from prior years
(2)(3)(5)
Increases related to positions taken in the current year10 12 
Settlement of uncertain tax positions with tax authorities(2)— (1)
Decrease due to expiration of statues of limitations(41)(1)(10)
Total gross unrecognized tax benefits at December 3199 107 96 
Total accrual for interest and penalties associated with unrecognized tax benefits (1)
13 
Total gross unrecognized tax benefits at December 31, including interest and penalties$112 $113 $101 
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate$73 $50 $42 
Interest and penalties included as components of the Provision for income taxes$$$(1)
(1)Accrued interest and penalties are included within Other accrued liabilities and Other liabilities in the consolidated balance sheets.
The Company is subject to income tax in approximately 49 jurisdictions outside of Bermuda. The Company’s significant operations outside of Bermuda are located in Brazil, China, Germany, Mexico, Switzerland, the United Kingdom, and the United States. The statute of limitations varies by jurisdiction with 2014 being the oldest tax year still open in significant jurisdictions. Certain German subsidiaries are under tax examination for calendar years 2014 to 2020. The review by the German Tax Authorities (“GTA”) encompasses various tax aspects, including but not limited to intercompany transactions and the establishment of our European headquarters in Basel, Switzerland in 2016. The GTA have issued proposed adjustments and have communicated a preliminary position related to the establishment of our European headquarters. We are fully engaged in ongoing discussions with the GTA and are evaluating potential resolution options for certain tax years open under audit.
The Company is also under audit in other jurisdictions outside of Germany, including an inquiry with His Majesty’s Revenue and Customs (“HMRC”) in the United Kingdom for tax years 2021-2023. The HMRC’s inquiries are principally related to, but not limited to, certain intercompany financing activities. We continue to respond to information requests.
The result of all open examinations may lead to adjustments to our taxes or certain tax attributes including net operating losses or interest limitation carryforwards with respect to years under examination as well as subsequent periods. We believe that our estimated provisions for any adjustments that may result from the examinations are appropriately recorded in our condensed consolidated financial statements at December 31, 2025.
v3.25.4
NET INCOME PER COMMON SHARE
12 Months Ended
Dec. 31, 2025
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 RSUs and PSUs. A reconciliation of our basic and diluted net income per common share is as follows:
Year Ended December 31,
(In millions, except per share data)202520242023
Net income to common shareholders $378 $391 $267 
Basic weighted average shares outstanding 216.0 219.3 221.0 
Diluted weighted average shares outstanding217.0 220.4 221.9 
Net income per common share (1):
Basic net income per share$1.75 $1.78 $1.21 
Diluted net income per share$1.74 $1.78 $1.21 
(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 years ended December 31, 2025, 2024 and 2023 was 0.2 million, 0.1 million and 0.4 million, respectively.
v3.25.4
ACCOUNTS AND NOTES RECEIVABLE, NET
12 Months Ended
Dec. 31, 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.
Year Ended December 31,
20252024
Accounts receivable—trade, net (1)
$1,014 $1,015 
Notes receivable32 92 
Other (2)
183 141 
Total$1,229 $1,248 
(1)Allowance for doubtful accounts was $29 million and $25 million at December 31, 2025 and 2024, respectively.
(2)Includes $26 million and $29 million at December 31, 2025 and 2024, respectively, of insurance recoveries related to an operational matter discussed further in Note 5.
Bad debt expenses of $9 million, $9 million and $5 million was included within selling, general and administrative expenses and other operating charges for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
INVENTORIES
12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIES
Year Ended December 31,
20252024
Finished products$431 $391 
Semi-finished products122 124 
Raw materials168 189 
Stores and supplies35 30 
Total$756 $734 
Inventory reserves were $22 million and $17 million at December 31, 2025 and 2024, respectively.
v3.25.4
PROPERTY, PLANT AND EQUIPMENT, NET
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT, NET PROPERTY, PLANT AND EQUIPMENT, NET
Year Ended December 31,
Useful Lives (years)20252024
Land$76 $72 
Buildings and improvements5-25575 517 
Machinery and equipment5-251,549 1,403 
Software and information technology assets5-15287 272 
Other3-2072 74 
Construction in progress172 116 
Total2,731 2,454 
Accumulated depreciation(1,432)(1,273)
Property, plant and equipment, net$1,299 $1,181 
Depreciation expense amounted to $131 million, $127 million and $121 million for the years ended December 31, 2025, 2024 and 2023, respectively.
We capitalized interest of $7 million, $4 million and $6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
OTHER ASSETS
12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS OTHER ASSETS
Year Ended December 31,
 20252024
Deferred income taxes—non-current119 164 
Business incentive payment assets191 169 
Operating lease ROU assets 112 99 
Other assets (1)
121 124 
Total$543 $556 
(1)Includes a $19 million customer loans entered into during the year ended December 31, 2024 that will be repaid over a 5-year period, of which $4 million is classified as prepaid expenses and other current assets on the consolidated balance sheets.
v3.25.4
ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES
12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES
Year Ended December 31,
20252024
Accounts Payable
Trade payables (1)
$577 $603 
Non-income taxes26 26 
Other34 30 
Total$637 $659 
Other Accrued Liabilities
Compensation and other employee-related costs$210 $245 
Restructuring—current26 46 
Discounts, rebates, and warranties (2)
249 246 
Operating lease liabilities31 27 
Income taxes payable49 29 
Other147 82 
Total$712 $675 
(1)Includes $29 million and $28 million at December 31, 2025 and 2024, respectively, payable to banking institutions as part of our supplier financing programs discussed further in Note 17.
(2)Includes $24 million and $27 million at December 31, 2025 and 2024, respectively, of liabilities related to an operational matter discussed further in Note 5.
v3.25.4
SUPPLIER FINANCE PROGRAMS
12 Months Ended
Dec. 31, 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 $23 million and $22 million at December 31, 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 $6 million at both December 31, 2025 and December 31, 2024.
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 consolidated balance sheets and the associated payments are included in operating activities within the 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 consolidated balance sheets and at the time of issuance each transaction is treated as a non-cash financing activity within the consolidated statements of cash flows. Upon settlement of the financing, the cash outflow is classified as a financing activity within the consolidated statements of cash flows. There were no balances outstanding under this program at December 31, 2025 and December 31, 2024. Amounts outstanding under this program were $4 million at December 31, 2023, including $1 million related to purchases of property, plant and equipment. Cash outflows under this program were $0 million, $4 million and $42 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The following table summarizes the amounts outstanding under the SCF and VCA programs:
SCF ProgramVCA Program
Obligations outstanding at December 31, 2024$22 $
Invoices confirmed131 24 
Confirmed invoices paid(131)(24)
Currency impact— 
Obligations outstanding at December 31, 2025$23 $
v3.25.4
BORROWINGS
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Borrowings BORROWINGS
Year Ended December 31,
20252024
2029 Dollar Term Loans$1,475 $1,702 
2027 Dollar Senior Notes500 500 
2029 Dollar Senior Notes700 700 
2031 Dollar Senior Notes500 500 
Short-term and other borrowings50 54 
Unamortized original issue discount(9)(13)
Unamortized deferred financing costs(17)(22)
Total borrowings, net3,199 3,421 
Less:
Short-term borrowings
Current portion of long-term borrowings17 17 
Long-term debt$3,179 $3,401 
Senior Secured Credit Facilities, as amended
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 (the “Revolving Credit Facility”) that is governed by a credit agreement (as amended prior to the date hereof, the “Credit Agreement”). The Credit Agreement has undergone several amendments, the most recent of which are detailed within the discussion below. For additional detail regarding earlier amendments, refer to our previous Annual Reports on Form 10-K filed with the SEC.
Any indebtedness under the Senior Secured Credit Facilities may be voluntarily prepaid in whole or in part, in minimum amounts, subject to the provisions set forth in the Credit Agreement. Such indebtedness is subject to mandatory prepayments amounting to the proceeds of asset sales over $75 million, proceeds from certain debt issuances not otherwise permitted under the Credit Agreement and 50% (subject to a step-down to 25.0% or 0% if the First Lien Net Leverage Ratio (as defined in the Credit Agreement) falls below 4.25:1.00 or 3.50:1.00, respectively) of Excess Cash Flow (as defined in the Credit Agreement). Under the circumstances and subject to the conditions described in the Credit Agreement, we may increase our capacity for revolving loans, increase commitments under our existing term loans, issue additional term loans or issue other indebtedness.
The Senior Secured Credit Facilities are secured by substantially all assets of the Company and certain other subsidiary guarantors, with certain guarantors providing equity pledges only. We are subject to customary negative covenants in addition to the First Lien Net Leverage Ratio financial covenant for purposes of determining any Excess Cash Flow mandatory payment. Further, the Senior Secured Credit Facilities, among other things, include customary restrictions (subject to certain exceptions) on the Company’s ability to incur certain indebtedness, grant certain liens, make certain investments, or declare or pay certain dividends. As of December 31, 2025, the Company is in compliance with all covenants under the Senior Secured Credit Facilities.
The Proposed Merger, if consummated, will constitute a “Change of Control” under the Credit Agreement. Pursuant to the Merger Agreement, AkzoNobel agreed to, in consultation with Axalta, use reasonable best efforts to obtain funds to, among other things, refinance the 2029 Dollar Term Loans prior to consummation of the Merger.
i) 2029 Dollar Term Loans
The 2029 Dollar Term Loans were issued at 99.00% of par, or a $20 million discount, and mature on December 20, 2029. Principal is paid quarterly based on 1% per annum of the original principal amount outstanding on the most recent amendment date with the unpaid balance due at maturity, and interest is payable quarterly.
The 2029 Dollar Term Loans are subject to a floor of 0.5% and a margin of 1.75% when bearing interest at a rate based on the Secured Overnight Financing Rate (“SOFR”) and a margin of 1.50% when bearing interest at a rate based on the Base Rate (as defined in the Credit Agreement).
ii) Revolving Credit Facility
The Revolving Credit Facility matures on the earlier of June 21, 2029, the date of termination in whole of the Revolving Credit Facility, or the date that is 91 days prior to the maturity of the term loans borrowed under the Credit Agreement, which the maturity date is currently December 20, 2029. The financial covenant applicable to the Revolving Credit Facility is only applicable when greater than 35% of the Revolving Credit Facility (including letters of credit not cash collateralized to at least 103%) is outstanding at the end of an applicable fiscal quarter. If such conditions are met, the First Lien Net Leverage Ratio would be required to be less than or equal to 5.50:1.00.
Interest on any outstanding borrowings under the Revolving Credit Facility is subject to an interest margin of 1.50% for loans based on the Term Benchmark Loans and SONIA Rate Loans (each, as defined in the Credit Agreement) and 0.50% for loans based on the Base Rate with, in each case, a 0.25% increase when its First Lien Net Leverage Ratio is greater than or equal to 1.50:1.00 but less than or equal to 2.50:1.00 and another 0.25% increase when its First Lien Net Leverage Ratio is greater than 2.50:1.00.
At December 31, 2025 and December 31, 2024, letters of credit issued under the Revolving Credit Facility totaled $30 million and $22 million, respectively, which reduced the availability under the Revolving Credit Facility as of such dates. There were no borrowings outstanding under the Revolving Credit Facility at December 31, 2025 and 2024. Availability under the Revolving Credit Facility was $770 million and $778 million at December 31, 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 December 31, 2025 and December 31, 2024.
2025 Activities
During the year ended December 31, 2025, we prepaid $210 million of the outstanding principal amount of the 2029 Dollar Term Loans. As a result of these prepayments, we recorded a loss on extinguishment of debt of $2 million, within other expenses, net, for the year ended December 31, 2025, which comprised the proportionate write-off of unamortized deferred financing costs and original issue discounts.
During October 2025, we entered into the Seventeenth Amendment to the Credit Agreement (the “Seventeenth Amendment”) to permit the use of borrowings under the Credit Agreement to repurchase our common shares subject to the conditions set forth therein. As a result, we recorded an immaterial loss on deferred financing costs and fees directly associated with the modification.
2024 Activities
During the year ended December 31, 2024, we prepaid $75 million of the outstanding principal amount of the 2029 Dollar Term Loans. As a result of these prepayments, we recorded a loss on extinguishment of debt of $1 million, within other expenses, net, for the year ended December 31, 2024, which comprised the proportionate write-off of unamortized deferred financing costs and original issue discounts.
During March 2024, we entered into the Fourteenth Amendment to the Credit Agreement (the “Fourteenth Amendment”) to lower the interest rate spread applicable to the 2029 Dollar Term Loans, which continues to be based on the SOFR, from 2.50% to 2.00% and to make related changes to effect such repricing. The other material terms of the Credit Agreement, including the outstanding principal amount and maturity date of the 2029 Dollar Term Loans, remained unchanged. As a result of the repricing, we recorded a $2 million loss, within other expenses, net, on financing-related costs related to the write-off of unamortized deferred financing costs and original issue discount and fees incurred to complete the repricing.
During June 2024, we entered into the Fifteenth Amendment to the Credit Agreement (the “Fifteenth Amendment”), to among other things, increase commitments available pursuant to the Revolving Credit Facility from $550 million to $800 million and extend the maturity of the Revolving Credit Facility from May 2026 to June 2029, provided that such date would be accelerated in certain circumstances as set forth in the Credit Agreement and the Fifteenth Amendment. As a result, we recorded $4 million of incremental deferred financing costs to other assets within the consolidated balance sheets during the year ended December 31, 2024.
During November 2024, we entered into the Sixteenth Amendment to the Credit Agreement (the “Sixteenth Amendment”) to lower the interest rate spread applicable to the 2029 Dollar Term Loans, which continues to be based on SOFR, from 2.00% to 1.75% and to make related changes to effect such repricing. The other material terms of the Credit Agreement, including the outstanding principal amount and maturity date of the 2029 Dollar Term Loans, remained unchanged. As a result of the repricing, we recorded a $2 million loss, within other expenses, net, on financing-related costs related to the write-off of unamortized deferred financing costs and original issue discount and fees incurred to complete the repricing.
2023 Activities
Pursuant to the Credit Agreement, on July 1, 2023, an interest rate based on the London Interbank Offered Rate was automatically replaced with an interest rate based on the SOFR as the interest rate benchmark for loans denominated in U.S. Dollars under the Revolving Credit Facility available under the Credit Agreement. On the same date, we entered into the Twelfth Amendment to the Credit Agreement to reflect this transition and make other related conforming changes to the Credit Agreement.
During the year ended December 31, 2023, we prepaid $200 million of the outstanding principal amount of the 2029 Dollar Term Loans. As a result of these prepayments, we recorded a loss on extinguishment of debt of $3 million, within other expenses, net, for the year ended December 31, 2023, which comprised the proportionate write-off of unamortized deferred financing costs and original issue discounts.
During August 2023, we entered into the Thirteenth Amendment to the Credit Agreement to lower the interest rate spread applicable to the 2029 Dollar Term Loans from 3.00% to 2.50% when bearing interest at a rate based on SOFR. The other material terms of the Credit Agreement, including the outstanding principal amount and maturity date of the 2029 Dollar Term Loans, remained unchanged. As a result of the repricing, we recorded a $4 million loss. within other expenses, net, on financing-related costs during the year ended December 31, 2023, of which $2 million related to the write-off of unamortized deferred financing costs and original issue discount and $2 million related to fees incurred to complete the repricing.
Senior Notes
Our senior notes (the “Senior Notes”) presently consist of 4.750% senior notes due 2027 (the “2027 Dollar Senior Notes”), 3.375% senior notes due 2029 (the “2029 Dollar Senior Notes”) and 7.250% senior notes due 2031 (the “2031 Dollar Senior Notes”), each of which is governed by an indenture. Since inception, we have held various senior notes that have been subject to several supplemental indentures. For additional detail regarding earlier activities and terms, refer to our previous Annual Reports on Form 10-K filed with the SEC.
i) 2027 Dollar Senior Notes
The 2027 Dollar Senior Notes were issued at par and are due June 15, 2027. The 2027 Dollar Senior Notes bear interest at 4.750% which is payable semi-annually on June 15th and December 15th. We have the option to redeem all or part of the 2027 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, on or after June 15th of the years indicated:
Period2027 Dollar Senior Notes Percentage
2025 and thereafter100.000 %
Upon the occurrence of certain change of control triggering events, holders of the 2027 Dollar Senior Notes have the right to require us to repurchase all or any part of the 2027 Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The indebtedness under the 2027 Dollar Senior Notes is senior unsecured indebtedness of Axalta Coatings Systems, LLC (the “U.S. Issuer”) and the Axalta Coating Systems Dutch Holdings B.B.V. (the “Dutch Issuer”) (the U.S. Issuer and the Dutch Issuer collectively, the “2027 Notes Co-Issuers”), is senior in right of payment to all future subordinated indebtedness of the 2027 Notes Co-Issuers and the guarantors and is equal in right of payment to all existing and future senior indebtedness of the 2027 Notes Co-Issuers and the guarantors. The 2027 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the 2027 Notes Co-Issuers and the guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
The 2027 Dollar Senior Notes, subject to local law limitations, are jointly and severally guaranteed on a senior unsecured basis by the Company and each of its existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities.
The indenture governing the 2027 Dollar Senior Notes contains covenants that limit the Company’s (and its subsidiaries’) ability to, among other things: (i) incur additional debt or issue certain preferred stock; (ii) pay dividends, redeem stock or make other distributions; (iii) make other restricted payments or investments; (iv) create liens on assets; (v) transfer or sell assets; (vi) create restrictions on payment of dividends or other amounts by the Company to the Company’s restricted subsidiaries; (vii) engage in mergers or consolidations; (viii) engage in certain transactions with affiliates; and (ix) designate the Company’s subsidiaries as unrestricted subsidiaries.
ii) 2029 Dollar Senior Notes
The 2029 Dollar Senior Notes were issued at par and are due February 15, 2029. The 2029 Dollar Senior Notes bear interest at 3.375% which is payable semi-annually on February 15th and August 15th. We have the option to redeem all or part of the 2029 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after February 15th of the years indicated:
Period2029 Dollar Senior Notes Percentage
2025100.844 %
2026 and thereafter100.000 %
Upon the occurrence of certain change of control triggering events, holders of the 2029 Dollar Senior Notes have the right to require us to repurchase all or any part of the 2029 Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The 2029 Dollar Senior Notes, subject to local law limitations, are jointly and severally guaranteed on a senior unsecured basis by the Company and each of its existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities.
Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.
The indebtedness under the 2029 Dollar Senior Notes is senior unsecured indebtedness of the U.S. Issuer, is senior in right of payment to all future subordinated indebtedness of the U.S. Issuer and guarantors and is equal in right of payment to all existing and future senior indebtedness of the U.S. Issuer and guarantors. The 2029 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the U.S. Issuer and guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
The indenture governing the 2029 Dollar Senior Notes contains covenants that limit the Company’s (and its subsidiaries’) ability to, among other things: (i) incur additional debt or issue certain preferred stock; (ii) pay dividends, redeem stock or make other distributions; (iii) make other restricted payments or investments; (iv) create liens on assets; (v) transfer or sell assets; (vi) create restrictions on payment of dividends or other amounts by the Company to the Company’s restricted subsidiaries; (vii) engage in mergers or consolidations; (viii) engage in certain transactions with affiliates; and (ix) designate the Company’s subsidiaries as unrestricted subsidiaries.
iii) 2031 Dollar Senior Notes
The 2031 Dollar Senior Notes were issued at par and are due February 15, 2031. The 2031 Dollar Senior Notes bear interest at 7.250% which is payable semi-annually on May 15th and November 15th. We have the option to redeem all or part of the 2031 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after November 15th of the years indicated:
Period2031 Dollar Senior Notes Percentage
2026103.625 %
2027101.813 %
2028 and thereafter100.000 %
Notwithstanding the foregoing, at any time prior to November 15, 2026, we may at our option redeem in the aggregate up to 40% of the original aggregate principal amount of the 2031 Dollar Senior Notes with the net cash proceeds of one or more Equity Offerings (as defined in the indenture governing the 2031 Dollar Senior Notes) at a redemption price of 107.250% plus accrued and unpaid interest, if any, to the redemption date. At least 50% of the original aggregate principal of the notes must remain outstanding after each such redemption.
Upon the occurrence of certain change of control triggering events, holders of the 2031 Dollar Senior Notes have the right to require us to repurchase all or any part of the 2031 Dollar Senior Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the repurchase date.
The 2031 Dollar Senior Notes, subject to local law limitations, are jointly and severally guaranteed on a senior unsecured basis by the Company and each of its existing and future direct and indirect subsidiaries that is a borrower under or that guarantees the Senior Secured Credit Facilities.
Under certain circumstances, the guarantors may be released from their guarantees without the consent of the holders of the applicable series of notes.
The indebtedness under the 2031 Dollar Senior Notes is senior unsecured indebtedness of the Dutch Issuer, is senior in right of payment to all future subordinated indebtedness of the Dutch Issuer and the guarantors and is equal in right of payment to all existing and future senior indebtedness of the Dutch Issuer and the guarantors. The 2031 Dollar Senior Notes are effectively subordinated to any secured indebtedness of the Dutch Issuer and the guarantors (including indebtedness outstanding under the Senior Secured Credit Facilities) to the extent of the value of the assets securing such indebtedness.
The indenture governing the 2031 Dollar Senior Notes contains covenants that limit the Company’s (and its subsidiaries’) ability to, among other things: (i) incur additional debt or issue certain preferred stock; (ii) pay dividends, redeem stock or make other distributions; (iii) make other restricted payments or investments; (iv) create liens on assets; (v) transfer or sell assets; (vi) create restrictions on payment of dividends or other amounts by the Company to the Company’s restricted subsidiaries; (vii) engage in mergers or consolidations; (viii) engage in certain transactions with affiliates; and (ix) designate the Company’s subsidiaries as unrestricted subsidiaries.
2025 Activities
None.
2024 Activities
None.
2023 Activities
In November 2023, we issued $500 million in aggregate principal amount of the 2031 Dollar Senior Notes. The net proceeds from the 2031 Dollar Senior Notes, together with cash on hand, were used to redeem the €450 million aggregate principal amount, with USD equivalent of $489 million, of 3.750% Euro Senior Notes due 2025 (“Redeemed Notes”) and pay related transaction costs and expenses (“November 2023 Notes Refinancing”).
In connection with the November 2023 Notes Refinancing, we incurred $8 million in third party fees, of which $6 million was paid concurrently with the issuance, and $1 million was accrued. We also recorded a $2 million loss on extinguishment of debt relating to the write off of unamortized deferred financing costs attributable to the Redeemed Notes.
Future repayments
Below is a schedule of required future repayments of all borrowings outstanding at December 31, 2025.
2026$20 
2027521 
202821 
20292,129 
2030
Thereafter529 
Total borrowings$3,225 
Unamortized original issue discount(9)
Unamortized deferred financing costs(17)
Total borrowings, net$3,199 
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS
12 Months Ended
Dec. 31, 2025
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, 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 from business acquisitions 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, net in the 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 December 31, 2025 and 2024.
December 31, 2025December 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Prepaid expenses and other current assets:
Cross-currency swaps (1)
— — — 12 — 12 
Other assets:
Cross-currency swaps (1)
— — — — — — 
Investments in equity securities
— — — — 
Liabilities
Other accrued liabilities:
Interest rate swaps (2)
— — — — — — 
Cross-currency swaps (1)
— 51 — 51 — — — — 
Contingent consideration— — — — 
Other liabilities:
Cross-currency swaps (1)
— 50 — 50 — — — — 
Long-term borrowings:
2029 Dollar Term Loans— 1,481 — 1,481 — 1,709 — 1,709 
2027 Dollar Senior Notes— 501 — 501 — 490 — 490 
2029 Dollar Senior Notes— 674 — 674 — 637 — 637 
2031 Dollar Senior Notes— 527 — 527 — 519 — 519 
(1)Net investment hedge
(2)Cash flow hedge
The table below presents a roll forward of activity for the Level 3 liabilities for the year ended December 31, 2025.
Fair Value Using Significant Unobservable Inputs
(Level 3)
Beginning balance at January 1, 2025$
Contingent consideration from business acquisitions
Change in fair value(1)
Foreign currency translation(1)
Ending balance at December 31, 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. A description of each type of derivative used to manage risk is included in the following paragraphs and our policies regarding accounting treatments of derivative movements are detailed in Note 1.
Derivative Instruments Qualifying and Designated as Cash Flow and Net Investment Hedges
Interest Rate Swaps Designated as Cash Flow Hedges
During the year ended December 31, 2025, an interest rate swap associated with the 2029 Dollar Term Loans, which was previously executed in 2024, was set to expire on September 30, 2025, was effectively terminated on September 25, 2025, and a new interest rate swap was simultaneously issued as is set forth in the below table. This interest rate swap is marked to market at each reporting date and any unrealized gains or losses are included in unrealized (gain) loss on derivatives within AOCI.
FormerCurrent
Notional amount$475 $150 $150 $175 
Interest rate pay2.720 %
0.5% - 4.256%
4.692 %3.303 %
Interest rate receive3-month SOFR3-month SOFR3-month SOFR3-month SOFR
Initial effective date4/10/20183/31/20233/27/20249/25/2025
Maximum expiration date3/31/2023
3/31/2024 (1)
9/30/2025 (2)
6/30/2028
(1)    The interest rate swap was terminated early on March 27, 2024.
(2)    The interest rate swap was effectively terminated on September 25, 2025.
Cross-Currency Swaps Designated as Net Investment Hedges
During the year ended December 31, 2025, a fixed-for-fixed cross-currency swap, which was previously executed in 2024 and was set to expire on September 30, 2025, was effectively amended to extend the maturity to June 30, 2028, reset the terms, and increase the notional value as is set forth in the below table. This cross-currency swap is marked to market at each reporting date, and any unrealized gains or losses subject to the assessment of the hedge’s effectiveness are included in unrealized currency translation adjustments within AOCI. Gains and losses for hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis.
FormerCurrent
Notional exchanged$475 $150 $150 $500 $175 $365 
Interest rate receive4.470 %7.256 %6.692 %7.250 %5.053 %3.375 %
Notional received417 142 142 467 166 335 
Interest rate pay1.440 %5.697 %4.899 %5.623 %3.295 %2.040 %
Initial effective date11/07/20183/31/20233/27/202411/17/20239/25/202511/24/2018
Maximum expiration date3/31/2023
3/31/2024 (1)
9/30/2025 (2)
11/15/20266/30/20282/15/2029
(1)    The cross-currency swap was terminated early on March 27, 2024.
(2)    The cross-currency swap was effectively amended on September 25, 2025.
The following tables set forth the locations and amounts recognized during the year ended December 31, 2025, 2024 and 2023 for these cash flow and net investment hedges.
Year Ended December 31,
202520242023
Derivatives in Cash Flow and Net Investment HedgesLocation of (Gain) Loss Recognized in Income on DerivativesNet Amount of (Gain) Loss Recognized in OCI on DerivativesAmount of Gain Recognized in IncomeNet Amount of Loss (Gain) Recognized in OCI on DerivativesAmount of Gain Recognized in IncomeNet Amount of (Gain) Loss Recognized in OCI on DerivativesAmount of Gain Recognized in Income
Interest rate swaps
Interest expense, net(1)— — (2)(4)
Cross-currency swaps
Interest expense, net101 (17)(70)(16)47 (10)
Over the next 12 months, we expect no gain or loss pertaining to cash flow hedges to be reclassified from AOCI into earnings.
Derivative Instruments Not Designated as Cash Flow 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, net in the consolidated statement 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:
Derivatives Not Designated as
Hedging Instruments under
ASC 815
Location of (Gain) Loss
Recognized in Income on
Derivatives
Year Ended December 31,
202520242023
Foreign currency forward contracts
Other expense, net $(16)$(1)$
v3.25.4
SEGMENTS
12 Months Ended
Dec. 31, 2025
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 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 table presents relevant information of our reportable segments.
Year Ended December 31,
202520242023
Net sales (1):
Refinish$2,051 $2,164 $2,084 
Industrial1,226 1,291 1,324 
Total Net sales Performance Coatings3,277 3,455 3,408 
Light Vehicle1,438 1,405 1,340 
Commercial Vehicle402 416 436 
Total Net sales Mobility Coatings1,840 1,821 1,776 
Total Net sales$5,117 $5,276 $5,184 
Segment Adjusted EBITDA:
Performance Coatings$788 $838 $742 
Mobility Coatings340 278 209 
Total$1,128 $1,116 $951 
Investment in unconsolidated affiliates:
Performance Coatings$$$
Mobility Coatings11 
Total$12 $11 $11 
(1)The Company has no intercompany sales between segments.
The following tables reconcile net sales to Segment Adjusted EBITDA for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, 2025
Performance CoatingsMobility CoatingsTotal
Net sales
$3,277 $1,840 $5,117 
Segment cost of goods sold (1)
1,767 1,180 2,947 
Other segment items (2)
722 320 1,042 
Segment Adjusted EBITDA$788 $340 $1,128 
Year Ended December 31, 2024
Performance CoatingsMobility CoatingsTotal
Net sales
$3,455 $1,821 $5,276 
Segment cost of goods sold (1)
1,849 1,209 3,058 
Other segment items (2)
768 334 1,102 
Segment Adjusted EBITDA$838 $278 $1,116 
Year Ended December 31, 2023
Performance CoatingsMobility CoatingsTotal
Net sales
$3,408 $1,776 $5,184 
Segment cost of goods sold (1)
1,898 1,233 3,131 
Other segment items (2)
768 334 1,102 
Segment Adjusted EBITDA$742 $209 $951 
(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, 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:
Year Ended December 31,
202520242023
Segment Adjusted EBITDA (1):
Performance Coatings$788 $838 $742 
Mobility Coatings340 278 209 
Total1,128 1,116 951 
Interest expense, net176 205 213 
Depreciation and amortization295 280 276 
Debt extinguishment and refinancing-related costs (a)
10 
Termination benefits and other employee-related costs (b)
23 67 18 
Merger and acquisition-related costs (c)
32 11 
Site closure costs (d)
Impairment charges (e)
— — 15 
Foreign exchange remeasurement losses (f)
15 11 23 
Long-term employee benefit plan adjustments (g)
12 
Stock-based compensation (h)
25 28 26 
Gains on sales of assets (i)
(6)— — 
Environmental charges (j)
— 
Other adjustments (k)
— (1)(4)
Income before income taxes$546 $496 $355 
(1)The primary measure of segment operating performance is Segment Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation, amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (i) non-cash items included within net income, (ii) items the Company does not believe are indicative of ongoing operating performance or (iii) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents Segment EBITDA adjusted for the select items referred to above.
(a)Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which we do not consider 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. We do not consider these amounts indicative of our ongoing operating performance.
(c)Represents merger and acquisition-related expenses, including business combination, negotiation, documentation and integration activity, associated with both consummated and unconsummated transactions, all of which we do not consider 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 we do not consider indicative of our ongoing operating performance. The losses recorded during the 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 non-recurring income related to the sales of fixed assets.
(j)Represents costs related to certain environmental remediation activities, which we do not consider indicative of our ongoing operating performance.
(k)Represents costs for certain non-operational or non-cash gains, net, unrelated to our core business and which we do not consider indicative of our ongoing operating performance.
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:
Year Ended December 31,
202520242023
North America$1,761 $2,014 $2,038 
EMEA1,824 1,784 1,776 
Asia Pacific902 862 781 
Latin America (1)
630 616 589 
Total (2)
$5,117 $5,276 $5,184 
Net long-lived assets by region were as follows:
Year Ended December 31,
20252024
North America$561 $539 
EMEA420 362 
Asia Pacific185 185 
Latin America (1)
133 95 
Total (3)
$1,299 $1,181 
(1)Includes Mexico.
(2)Net Sales are attributed to countries based on the customer’s location. Sales to customers in China represented approximately 12%, 11% and 10% of the total for the years ended December 31, 2025, 2024 and 2023. Sales to customers in Germany represented approximately 7% of the total for the years ended December 31, 2025, 2024 and 2023. Mexico represented approximately 6% of the total for the year ended December 31, 2025 and 7% for the years ended December 31, 2024 and 2023. Brazil represented approximately 5%, 4% and 3% of the total for the years ended December 31, 2025, 2024 and 2023, respectively. Canada, which is included in the North America region, represented approximately 3% of total for the years ended December 31, 2025, 2024 and 2023.
(3)Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $230 million and $204 million at December 31, 2025 and 2024, respectively. China long-lived assets amounted to approximately $156 million at December 31, 2025 and 2024. Mexico long-lived assets amounted to approximately $92 million and $63 million at December 31, 2025 and 2024, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $6 million at December 31, 2025 and 2024.
v3.25.4
ACCUMULATED OTHER COMPREHENSIVE LOSS
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE LOSS ACCUMULATED OTHER COMPREHENSIVE LOSS
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
(Loss) Gain on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2024$(517)$(64)$(1)$(582)
Current year deferrals to AOCI222 (8)215 
Reclassifications from AOCI to Net income
(17)— (16)
Net Change205 (7)199 
Balance, December 31, 2025$(312)$(71)$— $(383)
The cumulative income tax expense related to the adjustments for foreign exchange at December 31, 2025 was $1 million. The cumulative income tax benefit related to the adjustments for pension benefits at December 31, 2025 was $29 million. The cumulative income tax expense related to the adjustments for unrealized loss on derivatives at December 31, 2025 was an immaterial amount. See Note 19 for classification within the consolidated statements of operations of the gains and losses on derivatives reclassified from AOCI.
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Loss on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2023$(374)$(70)$— $(444)
Current year deferrals to AOCI(127)(1)(124)
Reclassifications from AOCI to Net income
(16)— (14)
Net Change(143)(1)(138)
Balance, December 31, 2024$(517)$(64)$(1)$(582)
The cumulative income tax expense related to the adjustments for foreign exchange at December 31, 2024 was $1 million. The cumulative income tax benefit related to the adjustments for pension benefits at December 31, 2024 was $27 million. The cumulative income tax benefit related to the adjustments for unrealized gain on derivatives at December 31, 2024 was immaterial. See Note 19 for classification within the consolidated statements of operations of the gains and losses on derivatives reclassified from AOCI.
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2022$(434)$(36)$$(467)
Current year deferrals to AOCI70 (35)37 
Reclassifications from AOCI to Net income
(10)(5)(14)
Net Change60 (34)(3)23 
Balance, December 31, 2023$(374)$(70)$— $(444)
The cumulative income tax benefit related to the adjustments for foreign exchange at December 31, 2023 was $1 million. The cumulative income tax benefit related to the adjustments for pension benefits at December 31, 2023 was $29 million. The cumulative income tax benefit related to the adjustments for unrealized gain on derivatives at December 31, 2023 was immaterial. See Note 19 for classification within the consolidated statements of operations of the gains and losses on derivatives reclassified from AOCI.
v3.25.4
Schedule II
12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
Allowance for Doubtful Accounts for the years ended December 31:
(in millions)Balance at Beginning of YearAdditions
Deductions (1)
Balance at End of Year
2025$25 (5)$29 
2024$25 (9)$25 
2023$23 (3)$25 
(1)Deductions include uncollectible accounts written off and foreign currency translation impact.
Inventory reserve for the years ended December 31:
(in millions)Balance at Beginning of YearAdditions
Deductions (1)
Balance at End of Year
2025$17 37 (32)$22 
2024$27 36 (46)$17 
2023$17 49 (39)$27 
(1)Deductions include inventory written off and foreign currency translation impact.
Deferred tax asset valuation allowances for the years ended December 31:
(in millions)Balance at Beginning of Year
Additions (1)
Deductions (1)
Balance at End of Year
2025$250 87 — $337 
2024$234 33 (17)$250 
2023$194 41 (1)$234 
(1)Additions and deductions include the impact of foreign currency translation.
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 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
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
The availability of our products and services and fulfillment of our customer obligations depend on the continuing operation of our information technology and communications systems. Accordingly, cybersecurity represents a critical component of the Company’s overall approach to risk management. The Company’s cybersecurity policies, standards and practices are integrated into the Company’s enterprise risk management (“ERM”) approach, and cybersecurity risks are among the core enterprise risks that are subject to oversight by the Board, as described below, acting through the Audit Committee. The Company’s cybersecurity policies, standards and practices leverage recognized frameworks established by the International Organization for Standardization.
The Company generally approaches cybersecurity threats through a cross-functional, multilayered approach, with the goals of implementing and maintaining preventative controls, identifying and monitoring threats and maximizing chances of recovery in the case of a cybersecurity incident.
The Company periodically engages assessors, consultants, auditors and other third parties to assess our cybersecurity programs, including information security maturity assessments, audits and independent reviews of our information security control environment and operating effectiveness. The Company adjusts its cybersecurity policies, standards, processes and practices as necessary based on the information provided by the assessments, audits and reviews. In engaging with third-party providers that will have access to certain sensitive Company data, the Company performs a cross-functional due diligence review and attempts to identify risks posed by engaging such third-party providers, and, where feasible, seeks to obtain contractual commitments from such third parties with respect to such engagement. The Company maintains cybersecurity insurance with coverage for security incident response expenses, certain losses due to network security failures, investigation expenses, privacy liability and certain third-party liability, subject to certain deductibles, exclusions and policy limits.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
The availability of our products and services and fulfillment of our customer obligations depend on the continuing operation of our information technology and communications systems. Accordingly, cybersecurity represents a critical component of the Company’s overall approach to risk management. The Company’s cybersecurity policies, standards and practices are integrated into the Company’s enterprise risk management (“ERM”) approach, and cybersecurity risks are among the core enterprise risks that are subject to oversight by the Board, as described below, acting through the Audit Committee. The Company’s cybersecurity policies, standards and practices leverage recognized frameworks established by the International Organization for Standardization.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
The Board and the Audit Committee are responsible for overseeing the Company’s ERM processes, with the Audit Committee being tasked with overseeing cybersecurity risks facing the Company. Throughout the year, the Audit Committee receives regular updates from management on cybersecurity matters, which address a wide range of topics including, for example, recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the overall threat environment, technological trends, global employee training and efforts to enhance the Company’s cybersecurity capabilities and preparedness. Relevant matters are also reviewed with the full Board on at least an annual basis.
The Company’s Global Director of Information Security & Compliance (the “GDISC”) is the member of the Company’s management that is principally responsible for overseeing the Company’s cybersecurity risk management programs, in partnership with business and functional leaders across the Company. The GDISC has 23 years of experience in the information technology and cybersecurity field, including previous roles in cybersecurity leadership, governance, and technology architecture and engineering. The GDISC reports to the Company’s Chief Information Officer (the “CIO”), who reports directly to the Senior Vice President, Chief Financial Officer. The CIO has 25 years of experience in the information technology and cybersecurity field, including previous roles in security architecture, audit, compliance, and governance.
Under the oversight of the GDISC, members of the Company’s Information Technology and Compliance departments administer the Company’s cybersecurity response policies, including assessing cybersecurity incidents as they occur and determining the severity of any cybersecurity incidents. To facilitate the success of this program, multidisciplinary teams throughout the Company are deployed to address cybersecurity threats and to respond to cybersecurity incidents in accordance with the Company’s policies. These teams report to an incident response governance team, which is composed of members of the Company’s senior leadership team, including the CIO. These teams monitor the prevention, detection, mitigation and remediation of cybersecurity incidents in real time, and report incidents to the Audit Committee, as appropriate.
For additional information regarding how cybersecurity threats have affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition, see Part I, Item 1A, “Risk Factors—General Risk Factors—Interruption, interference with, or failure of our information technology and communications systems could hurt our ability to effectively provide our products and services, which could harm our reputation, financial condition, operating results and cash flows.”
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board and the Audit Committee are responsible for overseeing the Company’s ERM processes, with the Audit Committee being tasked with overseeing cybersecurity risks facing the Company.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board and the Audit Committee are responsible for overseeing the Company’s ERM processes, with the Audit Committee being tasked with overseeing cybersecurity risks facing the Company. Throughout the year, the Audit Committee receives regular updates from management on cybersecurity matters, which address a wide range of topics including, for example, recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the overall threat environment, technological trends, global employee training and efforts to enhance the Company’s cybersecurity capabilities and preparedness. Relevant matters are also reviewed with the full Board on at least an annual basis.
Cybersecurity Risk Role of Management [Text Block]
The Company’s Global Director of Information Security & Compliance (the “GDISC”) is the member of the Company’s management that is principally responsible for overseeing the Company’s cybersecurity risk management programs, in partnership with business and functional leaders across the Company. The GDISC has 23 years of experience in the information technology and cybersecurity field, including previous roles in cybersecurity leadership, governance, and technology architecture and engineering. The GDISC reports to the Company’s Chief Information Officer (the “CIO”), who reports directly to the Senior Vice President, Chief Financial Officer. The CIO has 25 years of experience in the information technology and cybersecurity field, including previous roles in security architecture, audit, compliance, and governance.
Under the oversight of the GDISC, members of the Company’s Information Technology and Compliance departments administer the Company’s cybersecurity response policies, including assessing cybersecurity incidents as they occur and determining the severity of any cybersecurity incidents. To facilitate the success of this program, multidisciplinary teams throughout the Company are deployed to address cybersecurity threats and to respond to cybersecurity incidents in accordance with the Company’s policies. These teams report to an incident response governance team, which is composed of members of the Company’s senior leadership team, including the CIO. These teams monitor the prevention, detection, mitigation and remediation of cybersecurity incidents in real time, and report incidents to the Audit Committee, as appropriate.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
The Company’s Global Director of Information Security & Compliance (the “GDISC”) is the member of the Company’s management that is principally responsible for overseeing the Company’s cybersecurity risk management programs, in partnership with business and functional leaders across the Company. The GDISC has 23 years of experience in the information technology and cybersecurity field, including previous roles in cybersecurity leadership, governance, and technology architecture and engineering. The GDISC reports to the Company’s Chief Information Officer (the “CIO”), who reports directly to the Senior Vice President, Chief Financial Officer. The CIO has 25 years of experience in the information technology and cybersecurity field, including previous roles in security architecture, audit, compliance, and governance.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The GDISC has 23 years of experience in the information technology and cybersecurity field, including previous roles in cybersecurity leadership, governance, and technology architecture and engineeringThe CIO has 25 years of experience in the information technology and cybersecurity field, including previous roles in security architecture, audit, compliance, and governance.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Under the oversight of the GDISC, members of the Company’s Information Technology and Compliance departments administer the Company’s cybersecurity response policies, including assessing cybersecurity incidents as they occur and determining the severity of any cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated balance sheets of Axalta Coating Systems Ltd. (“Axalta,” the “Company,” “we,” “our” and “us”), at December 31, 2025 and 2024 and the related consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of cash flows and consolidated statements of changes in shareholders’ equity for the years ended December 31, 2025, 2024 and 2023 included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are audited.
Principles of Consolidation
Principles of Consolidation
The consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which Axalta does not maintain control, but has the ability to exercise significant influence over operating and financial policies of the investee, are accounted for using the equity method of accounting. As a result, Axalta’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statements of operations within Net income attributable to common shareholders, and our share of these companies’ stockholders’ equity is included in the accompanying consolidated balance sheets within other assets. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material. We eliminated all intercompany accounts and transactions in the preparation of the accompanying consolidated financial statements.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. The estimates and assumptions include, but are not limited to, receivable and inventory valuations, derivative instruments, fixed asset valuations, valuations of goodwill and identifiable intangible assets, including analysis of impairment, valuations of long-term employee benefit obligations, income taxes, environmental matters, contingencies, litigation, stock-based compensation, restructuring and allocations of costs. Our estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. Actual results could differ materially from those estimates.
Accounting for Business Combinations
Accounting for Business Combinations
We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets, including separately identifiable intangible assets, and assumed liabilities at their acquisition date fair values. The method records any excess purchase price over the fair value of acquired net assets as goodwill. Included in the determination of the purchase price is the fair value of contingent consideration, if applicable, based on the terms and applicable targets described within the acquisition agreements (i.e., projected revenues or EBITDA). Subsequent to the acquisition date, the fair value of the contingent liability, if determined to be payable in cash, is revalued at each balance sheet date with adjustments recorded within earnings.
The determination of the fair value of assets acquired, liabilities assumed and noncontrolling interests involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the closing date of the acquisition. When necessary, we consult with external advisors to help determine fair value. For non-observable market values determined using Level 3 assumptions, we determine fair value using acceptable valuation principles, including most commonly the excess earnings method for customer relationships, relief from royalty method for technology and trademarks, cost method for inventory and a combination of cost and market methods for property, plant and equipment, as applicable.
We include the results of operations from the acquisition date in the financial statements for all businesses acquired.
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash
Cash equivalents represent highly liquid investments considered readily convertible to known amounts of cash within three months or less from time of purchase. They are carried at cost plus accrued interest, which approximates fair value because of the short-term maturity of these instruments. Cash balances may exceed government insured limits in certain jurisdictions.
Restricted cash on our consolidated balance sheets represents cash used to secure certain customer guarantees.
Fair Value Measurements
Fair Value Measurements
GAAP defines a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
The following valuation techniques are used to measure fair value for assets and liabilities:
Level 1—Quoted market prices in active markets for identical assets or liabilities;
Level 2—Significant other observable inputs (i.e., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and
Level 3—Unobservable inputs for the asset or liability, which are valued based on management’s estimates of assumptions that market participants would use in pricing the asset or liability.
Derivatives and Hedging
Derivatives and Hedging
The Company from time to time utilizes derivatives to manage exposures to currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or accumulated other comprehensive loss (“AOCI”), depending on the use of the derivative and whether it qualifies for hedge accounting treatment and is designated as such.
Gains and losses on derivatives that qualify and are designated as cash flow or net investment hedges are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income.
Gains and losses on derivatives qualifying and designated as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income.
Cash flows from derivatives are presented in the consolidated statements of cash flows in a manner consistent with the underlying transactions.
Receivables and Allowance for Doubtful Accounts
Receivables and Allowance for Doubtful Accounts
Receivables are carried at amounts that approximate fair value. Receivables are recognized net of an allowance for doubtful accounts receivable. The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the financial asset, based on historical experience, current conditions and reasonable forecasts of future economic conditions. Accounts receivable are written down or off when a portion or all of such account receivable is determined to be uncollectible.
Inventories
Inventories
Inventories are valued at the lower of cost or net realizable value with cost being determined on the weighted average cost method. Elements of cost in inventories include:
raw materials,
direct labor, and
manufacturing and indirect overhead.
Stores and supplies are valued at the lower of cost or net realizable value; with cost generally determined by the weighted average cost method. Inventories deemed to have costs greater than their respective market values are reduced to net realizable value with a loss recorded in income in the period recognized.
Property, Plant and Equipment
Property, Plant and Equipment
Property, plant and equipment purchases are recorded at cost and are depreciated over the estimated useful life using the straight-line method starting on the date they are placed in service. See Note 14 for a range of estimated useful lives used for each property, plant and equipment class.
Software included in property, plant and equipment represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance and training costs are expensed in the period in which they are incurred.
Goodwill and Other Identifiable Intangible Assets
Goodwill and Other Identifiable Intangible Assets
Goodwill represents the excess of the purchase price over the fair values of the underlying net assets acquired in a business combination. Goodwill and indefinite-lived intangible assets are tested for impairment on an annual basis as of October 1st; however, these tests are performed more frequently if events or changes in circumstances indicate that the asset may be impaired.
When testing goodwill and indefinite-lived intangible assets for impairment, we first have an option to assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that an impairment exists. Such qualitative factors may include the evaluation of the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant asset-specific events. If based on this qualitative assessment we determine that an impairment is more likely than not, or if we elect not to perform a qualitative assessment, we would be required to perform a quantitative impairment test.
Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit, with respect to goodwill, and indefinite-lived intangible asset to its carrying value. If the fair value of the reporting unit or indefinite-lived intangible asset is less than the carrying value, the difference is recorded as an impairment loss not to exceed the amount of recorded goodwill or carrying value of the respective indefinite-lived intangible asset.
In 2025, as a result of the time lapsed since our last quantitative evaluation in 2022, we bypassed the qualitative evaluation and tested for impairment of the goodwill of our reporting units and our indefinite-lived intangible assets by performing a quantitative evaluation. The quantitative analysis concluded that all reporting units and indefinite-lived intangible assets had fair values substantially in excess of their carrying values.
Definite-lived intangible assets, such as technology, trademarks, customer relationships, and non-compete agreements, are amortized over their estimated useful lives, generally for periods ranging from 3 to 25 years. We evaluate these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable. The reasonableness of the useful lives of definite and indefinite-lived assets are regularly evaluated.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The carrying value of long-lived assets to be held and used is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. Evaluation for impairment is done at the asset group level. The carrying value of long-lived asset groupings is considered impaired when the total projected undiscounted cash flows from the asset group is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset group. The fair value methodology used is an estimate of fair market value and is based on prices of similar asset groupings or other valuation methodologies, including present value techniques. Long-lived asset groupings to be disposed of other than by sale are classified as held for use until their disposal. Long-lived asset groupings to be disposed of by sale are classified as held for sale after all applicable attributes in the guidance are met and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived asset groupings classified as held for sale.
Research and Development
Research and Development
Research and development costs incurred in the normal course of business consist primarily of employee-related costs and are expensed as incurred. In-process research and development projects acquired in a business combination are recorded as intangible assets at their fair value as of the acquisition date, using Level 3 assumptions. Subsequent costs related to acquired in-process research and development projects are expensed as incurred. In-process research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. These indefinite-lived intangible assets are tested for impairment consistent with the impairment testing performed on other indefinite-lived intangible assets discussed above. Upon completion of the research and development process, the carrying value of acquired in-process research and development projects is reclassified as a finite-lived asset and is amortized over its useful life. Once amortization commences, these assets are tested for impairment consistent with long-lived assets as discussed above.
Environmental Liabilities and Expenditures
Environmental Liabilities and Expenditures
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued environmental liabilities are not discounted. Claims for recovery from third parties, if any, are reflected separately as an asset. We record recoveries at the earlier of when the gain is probable and reasonably estimable or realized.
Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized as property, plant and equipment and depreciated over their useful life.
Contingencies and Litigation
Contingencies and Litigation
We accrue for liabilities related to contingencies, including the operational matter discussed in Note 5, and litigation matters when available information indicates that the liability is probable, and the amount can be reasonably estimated. Legal costs such as outside counsel fees and expenses are charged to expense in the period incurred.
Income Taxes
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for tax losses, interest and tax credit carryforwards. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in net income in the period that includes the enactment date.
Where we do not intend to indefinitely reinvest earnings of our subsidiaries, we provide for income taxes and withholding taxes, where applicable, on unremitted earnings. We do not provide for income taxes on unremitted earnings of our subsidiaries that are intended to be indefinitely reinvested.
We recognize the benefit of an income tax position only if it is “more likely than not” that the tax position will be sustained. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized. Additionally, we recognize interest and penalties related to unrecognized tax benefits as a component of provision for income taxes. The current portion of unrecognized tax benefits is included in other accrued liabilities and the long-term portion is included in other liabilities in the consolidated balance sheets.
Foreign Currency Translation
Foreign Currency Translation
Our reporting currency is the U.S. Dollar. In most cases, our non-U.S. based subsidiaries use their local currency as the functional currency for their respective business operations. Assets and liabilities of these operations are translated into U.S. Dollars at end-of-period exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Resulting cumulative translation adjustments are recorded as a component of shareholders’ equity in the accompanying consolidated balance sheets in AOCI.
Gains and losses from transactions denominated in currencies other than functional currencies are included in the consolidated statements of operations in other expense, net.
Employee Benefits
Employee Benefits
Defined benefit plans specify an amount of pension benefit that an employee will receive upon retirement, usually dependent on factors such as age, years of service and compensation. The obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of the future benefits that employees earn in return for their service in the current and prior periods. These benefits are then discounted to determine the present value of the obligations and are then adjusted for the impact of any unamortized prior service costs. The discount rate used is based upon market indicators in the region (generally, the yield on bonds that are denominated in the currency in which the benefits will be paid and that have maturity dates approximating the terms of the obligations). The calculations are performed by qualified actuaries using the projected unit credit method. The obligation of defined benefit plans recorded on our consolidated balance sheets is net of the current fair value of assets within each respective plan. See Note 7 for further information.
Stock-Based Compensation
Stock-Based Compensation
We provide directors and certain employees stock-based compensation comprising restricted stock units (“RSUs”) and performance share units (“PSUs”). The instruments are measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a graded-vesting attribution basis over the requisite service period, inclusive of impacts of any current period modifications of previously granted awards. Compensation expense is recorded net of forfeitures, which we have elected to record in the period they occur.
Earnings per Common Share
Earnings per Common Share
Basic earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to Axalta’s common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities; anti-dilutive securities are excluded from the calculation. These potentially dilutive securities are calculated under the treasury stock method and all outstanding stock options, RSUs, and PSUs are considered.
Recently Adopted Accounting Guidance and Accounting Guidance and Disclosure Rules Issued But Not Yet Adopted
Recently Adopted Accounting Guidance
In December 2025, we adopted Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740), which enhances the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid disclosures. This ASU does not impact our consolidated financial position, results of operations or cash flows. The required disclosures are included in Note 10.
Accounting Guidance and Disclosure Rules Issued But Not Yet Adopted
In November 2024, the Financial Accounting Standards Board (“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.
In September 2025, the FASB issued ASU 2025-06, Intangibles Goodwill and Other Internal-Use Software (Subtopic 350-40), to enhance guidance for recognizing and measuring capitalizable costs associated with the development of internal-use software. The new standard is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of ASU 2025-06 on our financial statements.
Revenue Recognition
We recognize revenue at the point our contractual performance obligations with our customers are satisfied. This occurs at the point in time when control of our products transfers to the customer based on considerations of right to payment, transfer of legal title, physical possession, risks and rewards of ownership and customer acceptance. For the majority of our revenue, control transfers upon shipment of our products to our customers. Our remaining revenue is recorded upon delivery or consumption for our product sales or as incurred for services provided and royalties earned.
Revenue is measured as the amount of consideration we expect to receive in exchange for our products or services. Our contracts, including those subject to standard terms and conditions under multi-year agreements, are largely short-term in nature and each customer purchase order typically represents a contract with the delivery of coatings representing the only separate performance obligation.
For certain customer arrangements within our light vehicle, industrial and commercial vehicle end-markets, revenue is recognized upon shipment, as this is the point in time we have concluded that control of our product has transferred to our customer based on our considerations of the indicators of control in the contracts, including right of use and risk and reward of ownership. For consignment arrangements, revenue is recognized upon actual consumption by our customers, as this represents the point in time that control is determined to have transferred to the customer based on the contractual arrangement.
In our refinish end-market, our product sales are typically supplied through a network of distributors. Control transfers and revenue is recognized when our products are shipped to our distribution customers. Variable consideration in the form of price, less discounts and rebates, are estimated and recorded upon the shipment of our products based on our ability to make a reasonable estimate of the amounts expected to be received. The estimates of variable consideration involve significant assumptions based on the best estimates of inventory held by distributors, applicable pricing, as well as the use of historical actuals for sales, discounts and rebates, which may result in changes in estimates in the future.
The timing of payments associated with the above arrangements may differ from the timing associated with the satisfaction of our performance obligations. The period between the satisfaction of the performance obligation and the receipt of payment is dependent on terms and conditions specific to the customers. For transactions in which we expect, at contract inception, the period between the transfer of our products or services to our customer and when the customer pays for that good or service to be greater than one year, we adjust the promised amount of consideration for the effects of any significant financing components that materially change the amount of revenue under the contract.
All costs incurred directly in satisfaction of our performance obligations associated with revenue are reported in cost of goods sold on the statements of operations. We also provide certain customers with incremental up-front consideration, subject to clawback provisions, including Business Incentive Plan assets (“BIPs”), which is capitalized and amortized over the estimated life of the contractual arrangement as a reduction of net sales.
Leases
We have operating and finance leases for certain of our technology centers, warehouses, office spaces, land, and equipment. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The lease term is determined to be the non-cancelable period including any lessee renewal options that are considered to be reasonably certain of exercise. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company used judgment to determine an appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment. Lease expense for fixed lease payments on operating leases is recognized over the expected term on a straight-line basis, while lease expense for fixed lease payments on finance leases is recognized using the effective interest method.
Certain of our lease agreements include rental payments based on an index or are adjusted periodically for inflation. At lease inception, we make assumptions for certain factors (i.e., inflation rates) through the lease term. Changes to lease payments resulting from these factors are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, variable lease expense also includes elements of a contract that is based on usage during the term. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
v3.25.4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables)
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table shows changes in the carrying amount of goodwill from December 31, 2023 to December 31, 2025 by reportable segment:
Performance
Coatings
Mobility
Coatings
Total
December 31, 2023$1,513 $78 $1,591 
Goodwill from acquisitions112 — 112 
Foreign currency translation(59)(4)(63)
December 31, 2024$1,566 $74 $1,640 
Goodwill from acquisitions19 — 19 
Foreign currency translation129 136 
December 31, 2025$1,714 $81 $1,795 
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:
December 31, 2025Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology$154 $(103)$51 11.1
Trademarks—indefinite-lived275 — 275 Indefinite
Trademarks—definite-lived164 (87)77 14.1
Customer relationships1,375 (631)744 18.9
Total$1,968 $(821)$1,147 
December 31, 2024Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Weighted average
amortization periods (years)
Technology$152 $(88)$64 11.1
Trademarks—indefinite-lived252 — 252 Indefinite
Trademarks—definite-lived154 (70)84 14.0
Customer relationships1,280 (531)749 19.1
Total$1,838 $(689)$1,149 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is:
2026$103 
2027$102 
2028$88 
2029$83 
2030$83 
v3.25.4
RESTRUCTURING (Tables)
12 Months Ended
Dec. 31, 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 for the years ended December 31, 2025, 2024 and 2023:
Balance at January 1, 2023$49 
Expense recorded
Payments made(37)
Foreign currency translation— 
Balance at December 31, 2023$16 
Expense recorded65 
Payments made(30)
Foreign currency translation(2)
Balance at December 31, 2024$49 
Expense recorded23 
Payments made(51)
Foreign currency translation
Balance at December 31, 2025$26 
v3.25.4
LEASES (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Supplemental Balance Sheet Information
Supplemental balance sheet information related to leases is summarized as follows:
December 31,
20252024
AssetsClassification
Operating lease ROU assets, net
Other assets (1)
$112 $99 
Finance lease ROU assets, net
Property, plant and equipment, net (2)
44 47 
Total leased assets$156 $146 
Liabilities
Current
Operating lease liabilitiesOther accrued liabilities$31 $27 
Finance lease liabilitiesCurrent portion of borrowings
Noncurrent
Operating lease liabilitiesOther liabilities81 73 
Finance lease liabilitiesLong-term borrowings47 51 
Total lease liabilities$162 $154 
(1)     Operating lease assets are recorded net of accumulated amortization of $116 million and $89 million for the years ended December 31, 2025 and 2024, respectively.
(2)     Finance lease assets are recorded net of accumulated amortization of $31 million and $26 million for the years ended December 31, 2025 and 2024, respectively.
Schedule of Lease Cost
Components of lease expense are summarized as follows:
Year Ended December 31,
202520242023
Finance lease cost
Amortization of right-of-use assets$$$
Interest on lease liabilities
Operating lease cost43 39 39 
Variable lease cost
Short-term lease cost
Net lease cost$54 $51 $52 
Supplemental cash flow information related to leases is summarized as follows:
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$39 $39 $40 
Operating cash flows for finance leases$$$
Financing cash flows for finance leases$$$
Non-cash leasing activities:
ROU assets obtained in exchange for lease obligations - Operating leases (1)
$37 $23 $21 
(1)     Includes lease extensions and option exercises.
Schedule of Lease Terms
Lease term and discount rate information are summarized as follows:
Year Ended December 31,
20252024
Weighted average remaining lease term (years)
Operating leases5.54.6
Finance leases11.312.2
Weighted average discount rate
Operating leases5.0 %5.4 %
Finance leases5.3 %5.3 %
Schedule of Operating Lease Maturity
Maturities of lease liabilities as of December 31, 2025 are as follows:
Operating LeasesFinance Leases
Year
2026$37 $
202729 
202820 
202911 
2030
Thereafter21 40 
Total lease payments127 70 
Less: imputed interest15 20 
Present value of lease liabilities$112 $50 
Schedule of Finance Lease Maturity
Maturities of lease liabilities as of December 31, 2025 are as follows:
Operating LeasesFinance Leases
Year
2026$37 $
202729 
202820 
202911 
2030
Thereafter21 40 
Total lease payments127 70 
Less: imputed interest15 20 
Present value of lease liabilities$112 $50 
v3.25.4
LONG-TERM EMPLOYEE BENEFITS (Tables)
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets The following table sets forth the changes to the projected benefit obligations (“PBO”) and plan assets for the years ended December 31, 2025 and 2024 and the funded status and amounts recognized in the accompanying consolidated balance sheets at December 31, 2025 and 2024 for our defined benefit pension plans:
Year Ended December 31,
20252024
Change in benefit obligation:
Projected benefit obligation at beginning of year$468 $526 
Service cost
Interest cost19 19 
Participant contributions
Actuarial loss (gain), net(17)
Plan curtailments, settlements and special termination benefits(11)(9)
Benefits paid(29)(29)
Business combinations and other adjustments— 
Foreign currency translation49 (30)
Projected benefit obligation at end of year509 468 
Change in plan assets:
Fair value of plan assets at beginning of year258 281 
Actual return on plan assets— 
Employer contributions24 24 
Participant contributions
Benefits paid(29)(29)
Settlements(11)(9)
Foreign currency translation20 (11)
Fair value of plan assets at end of year268 258 
Funded status, net$(241)$(210)
Amounts recognized in the consolidated balance sheets consist of:
Other assets$14 $24 
Other accrued liabilities(17)(14)
Accrued pensions(238)(220)
Net amount recognized$(241)$(210)
Schedule of Accumulated and Projected Benefit Obligations
The following table reflects the ABO for all defined benefit plans at December 31, 2025 and 2024. Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for pension plans with PBO in excess of plan assets and for pension plans with ABO in excess of plan assets.
December 31,
20252024
ABO$485 $447 
Plans with PBO in excess of plan assets:
PBO$322 $303 
ABO$301 $283 
Fair value plan assets$68 $69 
Plans with ABO in excess of plan assets:
PBO$322 $293 
ABO$301 $275 
Fair value plan assets$68 $60 
Schedule of Net Periodic Benefit Cost Not yet Recognized
The pre-tax amounts not yet reflected in net periodic benefit cost and included in AOCI include the following related to defined benefit plans:
Year Ended December 31,
20252024
Accumulated net actuarial losses$(99)$(93)
Accumulated prior service credit(1)
Total$(100)$(91)
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 years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
202520242023
Components of net periodic benefit cost and amounts recognized in comprehensive income:
Net periodic benefit cost:
Service cost$$$
Interest cost19 19 19 
Expected return on plan assets(10)(12)(11)
Amortization of actuarial loss, net
Curtailment gain— (1)— 
Settlement gain— (1)— 
Net periodic benefit cost19 15 15 
Changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain), net(6)51 
Amortization of actuarial loss, net(3)(4)(1)
Prior service credit— — 
Curtailment gain— — 
Settlement gain— — 
Other adjustments— (1)
Total loss (gain) recognized in other comprehensive income(8)49 
Total recognized in net periodic benefit cost and comprehensive income$28 $$64 
Schedule of Assumptions Used
We used the following assumptions in determining the benefit obligations and net periodic benefit cost of our defined benefit plans:
202520242023
Weighted average assumptions:
Discount rate to determine benefit obligation4.36 %4.06 %3.82 %
Discount rate to determine net cost4.06 %3.82 %4.37 %
Rate of future compensation increases to determine benefit obligation2.94 %2.89 %2.97 %
Rate of future compensation increases to determine net cost2.89 %2.97 %2.98 %
Rate of return on plan assets to determine net cost3.94 %4.47 %4.27 %
Cash balance interest credit rate to determine benefit obligation1.35 %1.08 %1.32 %
Cash balance interest credit rate to determine net cost1.08 %1.32 %1.96 %
Schedule of Expected Benefit Payments
The following reflects the total benefit payments expected to be paid for defined benefits:
Year ended December 31,Benefits
2026$35 
2027$37 
2028$38 
2029$44 
2030$45 
2031 - 2035$227 
Schedule of Allocation of Plan Assets The table below summarizes the weighted average actual and target pension plan asset allocations at December 31st for all funded Axalta defined benefit plans.
Asset Category20252024Target Allocation
Equity securities
0-5%
5-10%
0-5%
Debt securities
5-10%
40-45%
5-10%
Real estate
0-5%
0-5%
0-5%
Other (1)
90-95%
45-50%
90-95%
(1)    Substantially all pension insurance contracts and cash and cash equivalents holdings.
The table below presents the fair values of the defined benefit plan assets by level within the fair value hierarchy, as described in Note 1, at December 31, 2025 and 2024, respectively. Defined benefit plan assets measured using NAV have not been categorized in the fair value hierarchy.
Fair value measurements at
December 31, 2025
TotalLevel 1Level 2Level 3
Asset Category:
Cash and cash equivalents$10 $10 $— $— 
U.S. equity securities— — 
Non-U.S. equity securities— — 
Debt securities—government issued10 — 
Debt securities—corporate issued— — 
Insurance contracts and other235 — 234 
Total carried at fair value$264 $26 $$234 
Investments measured at NAV
Total$268 
Fair value measurements at
December 31, 2024
TotalLevel 1Level 2Level 3
Asset Category:
Cash and cash equivalents$11 $11 $— $— 
U.S. equity securities14 14 — — 
Non-U.S. equity securities— — 
Debt securities—government issued77 50 26 
Debt securities—corporate issued31 21 10 — 
Insurance contracts and other109 — — 109 
Total carried at fair value$251 $105 $36 $110 
Investments measured at NAV
Total$258 
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets The table below presents a roll forward of activity for these assets for the years ended December 31, 2025 and 2024. The transfers presented below during 2024 relate to de-risking activities in certain plans.
Level 3 assets
TotalInsurance contracts and otherDebt and equity
Ending balance at December 31, 2023$126 $116 $10 
Realized (loss)(8)(7)(1)
Purchases, sales, issues and settlements(5)(2)(3)
Transfers (out of) into Level 3(3)(5)
Ending balance at December 31, 2024$110 $109 $
Change in unrealized gain17 17 — 
Purchases, sales, issues and settlements107 108 (1)
Ending balance at December 31, 2025$234 $234 $— 
v3.25.4
STOCK-BASED COMPENSATION (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Restricted Stock and Restricted Stock Unit Award Activity
A summary of RSU activity as of and for the year ended December 31, 2025 is presented below:
Restricted Stock UnitsUnits
(in millions)
Weighted Average
Fair Value
Outstanding at January 1, 20251.0 $31.43 
Granted0.6 $33.79 
Vested(0.5)$30.86 
Forfeited(0.2)$32.97 
Outstanding at December 31, 20250.9 $32.91 
Schedule of PSA and PSU Activity
A summary of PSU activity as of and for the year ended December 31, 2025 is presented below:
Performance Share UnitsUnits
(in millions)
Weighted Average
Fair Value
Outstanding at January 1, 20250.9 $35.84 
Granted0.3 $39.67 
Vested (1)
— $30.85 
Forfeited(0.2)$33.52 
Outstanding at December 31, 20251.0 $37.94 
(1)    Activity during the year ended December 31, 2025 rounds to zero.
v3.25.4
OTHER EXPENSE , NET (Tables)
12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Schedule of Other Income, Net
Year Ended December 31,
202520242023
Foreign exchange losses, net$15 $11 $23 
Debt extinguishment and refinancing-related costs (1)
10 
Other miscellaneous income, net(4)(11)(13)
Total$13 $$20 
(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 restructuring and refinancing of our long-term borrowings, as discussed further in Note 18.
v3.25.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Domestic and Foreign Components of Income Before Income Taxes
Year Ended December 31,
202520242023
Domestic (1)
$29 $203 $150 
Foreign517 293 205 
Total$546 $496 $355 
(1)For the year ended December 31, 2025, the domestic income before income taxes represents Bermuda operations. For the years ended December 31, 2024, and 2023, the domestic income before income taxes represent United States operations.
Schedule of Components of Income Tax Expense (Benefit)
Provision (Benefit) for Income Taxes
Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
CurrentDeferredTotalCurrentDeferredTotalCurrentDeferredTotal
Domestic (1)
$$24 $25 $27 $$34 $33 $(9)$24 
Domestic State (1)
— — — (1)(2)
Foreign121 21 142 87 (23)64 52 55 
Total$122 $45 $167 $122 $(17)$105 $94 $(8)$86 
(1)For the year ended December 31, 2025, the domestic federal and state provision (benefit) for income taxes represent Bermuda operations. Bermuda does not impose a state income tax. For the years ended December 31, 2024, and 2023, the domestic federal and state provision (benefit) for income taxes represent United States operations.
Schedule of Cash Flow, Supplemental Disclosures
Income Tax Paid by Jurisdiction
Year Ended December 31,
2025
Brazil
China22 
India
Mexico14 
United States
29 
Other foreign jurisdictions (1)
28 
Total Income Tax Paid
$107 
(1)All other foreign jurisdictions do not individually exceed $5 million.
Schedule of Effective Income Tax Rate Reconciliation
Reconciliation to U.S. Statutory Rate
For the year ended December 31, 2025, the effective tax rate reconciliation is presented reflecting the differences between the Bermuda income tax rate and the effective tax rate for the Company. For the years ended December 31, 2024, and 2023, the effective tax rate reconciliation is presented reflecting the differences between the United States federal income tax rate and the effective tax rate for the Company.

Year Ended December 31,
2025
Statutory Bermuda federal income tax rate$82 15.0 %
Foreign Tax Effects
Brazil
Statutory tax rate differences between Brazil and Bermuda
0.8 
Foreign taxes0.8 
China
Statutory tax rate differences between China and Bermuda
1.6 
Other
0.6 
Germany
Trade tax
0.9 
Enactment of new tax laws(5)(0.9)
Other
(1)(0.2)
Luxembourg
Nondeductible foreign exchange gains and losses
10 1.8 
Other
(3)(0.5)
Netherlands
Statutory tax rate differences between Netherlands and Bermuda
(4)(0.7)
Nondeductible foreign exchange gains and losses
1.3 
Other
(5)(0.9)
Switzerland
Statutory tax rate differences between Switzerland and Bermuda
(20)(3.7)
Cantonal tax
1.3 
Foreign taxes0.8 
Deductible impairment loss(5)(0.9)
Other
(2)(0.4)
United Kingdom
Statutory tax rate differences between the United Kingdom and Bermuda
(6)(1.1)
Changes in valuation allowance
0.5 
United States
Statutory tax rate differences between United States and Bermuda
1.3 
State and local income taxes, net federal tax effect
0.7 
Tax credits
(6)(1.1)
Nontaxable and nondeductible items
1.6 
Mexico
1.3 
Other
16 2.8 
Changes in valuation allowance
19 3.5 
Nontaxable and nondeductible items
0.2 
Changes in unrecognized tax benefits
23 4.2 
Total income tax provision / effective tax rate
$167 30.6 %
Year Ended December 31,
20242023
Statutory U.S. federal income tax rate$104 21.0 %$75 21.0 %
Foreign income taxed at rates other than U.S. statutory rate
(25)(5.1)(29)(8.2)
Changes in valuation allowances
14 2.7 38 10.7 
Foreign exchange gains and losses(14)(2.7)0.2 
Unrecognized tax benefits 13 2.6 (6)(1.7)
Foreign taxes1.6 2.5 
Non-deductible expenses1.5 1.9 
Tax credits(7)(1.4)(9)(2.5)
U.S. state and local taxes, net1.2 1.5 
Bermuda CITA(27)(5.5)— — 
Other, net (1)
26 5.2 (5)(1.1)
Total income tax provision / effective tax rate
$105 21.1 %$86 24.3 %
(1)In 2024, the Company recorded a tax expense of $26 million in the Netherlands related to the write off of an expired net operating loss carryforward, which is fully offset by a tax benefit of $26 million for the decrease to the valuation allowance.
Schedule of Deferred Tax Assets and Liabilities
Deferred Tax Balances
Year Ended December 31,
20252024
Deferred tax asset
Tax loss, credit and interest carryforwards
$437 $361 
Compensation and employee benefits
62 68 
Accruals and other reserves
38 34 
Research and development capitalization
35 53 
Equity investment and other securities
— 
Leases41 38 
Other
Total deferred tax assets626 555 
Less: valuation allowance(337)(250)
Total deferred tax assets, net of valuation allowance289 305 
Deferred tax liabilities
Goodwill and intangibles
(164)(126)
Property, plant and equipment
(146)(143)
Unremitted earnings
(16)(14)
Accounts receivable and other assets(15)(7)
Equity investment and other securities— (2)
Total deferred tax liabilities(341)(292)
Net deferred tax (liability) asset$(52)$13 
Non-current assets$119 $164 
Non-current liability(171)(151)
Net deferred tax (liability) asset$(52)$13 
Schedule of Tax Credit Carryforwards
Tax loss, tax credit and interest carryforwardsYear Ended December 31,
20252024
Tax loss carryforwards (tax effected) (1)
Expire within 10 years
$49 $20 
Expire after 10 years or indefinite carryforward
201 175 
Tax credit carryforwards
Expire within 10 years
Expire after 10 years or indefinite carryforward
Interest carryforwards
Expire within 10 years
Expire after 10 years or indefinite carryforward
178 163 
Total tax loss, tax credit and interest carryforwards$437 $361 
(1)Net of unrecognized tax benefits
Schedule of Valuation Allowance
Valuation allowance
Year Ended December 31,
20252024
Domestic (1)
$27 $
Foreign310 246 
Total valuation allowance$337 $250 
(1)For the year ended December 31, 2025, the domestic valuation allowance represents Bermuda operations. For the year ended December 31,2024, the domestic valuation allowance represents the U.S. operations.
Schedule of Unrecognized Tax Benefits
Total Gross Unrecognized Tax Benefits
Year Ended December 31,
202520242023
Total gross unrecognized tax benefits at January 1$107 $96 $98 
Increases related to acquisitions— — — 
Increases related to positions taken on items from prior years
28 
Decreases related to positions taken on items from prior years
(2)(3)(5)
Increases related to positions taken in the current year10 12 
Settlement of uncertain tax positions with tax authorities(2)— (1)
Decrease due to expiration of statues of limitations(41)(1)(10)
Total gross unrecognized tax benefits at December 3199 107 96 
Total accrual for interest and penalties associated with unrecognized tax benefits (1)
13 
Total gross unrecognized tax benefits at December 31, including interest and penalties$112 $113 $101 
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate$73 $50 $42 
Interest and penalties included as components of the Provision for income taxes$$$(1)
(1)Accrued interest and penalties are included within Other accrued liabilities and Other liabilities in the consolidated balance sheets.
v3.25.4
NET INCOME PER COMMON SHARE (Tables)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted A reconciliation of our basic and diluted net income per common share is as follows:
Year Ended December 31,
(In millions, except per share data)202520242023
Net income to common shareholders $378 $391 $267 
Basic weighted average shares outstanding 216.0 219.3 221.0 
Diluted weighted average shares outstanding217.0 220.4 221.9 
Net income per common share (1):
Basic net income per share$1.75 $1.78 $1.21 
Diluted net income per share$1.74 $1.78 $1.21 
(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.
v3.25.4
ACCOUNTS AND NOTES RECEIVABLE, NET (Tables)
12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Year Ended December 31,
20252024
Accounts receivable—trade, net (1)
$1,014 $1,015 
Notes receivable32 92 
Other (2)
183 141 
Total$1,229 $1,248 
(1)Allowance for doubtful accounts was $29 million and $25 million at December 31, 2025 and 2024, respectively.
(2)Includes $26 million and $29 million at December 31, 2025 and 2024, respectively, of insurance recoveries related to an operational matter discussed further in Note 5.
v3.25.4
INVENTORIES (Tables)
12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current
Year Ended December 31,
20252024
Finished products$431 $391 
Semi-finished products122 124 
Raw materials168 189 
Stores and supplies35 30 
Total$756 $734 
v3.25.4
PROPERTY, PLANT AND EQUIPMENT, NET (Tables)
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
Year Ended December 31,
Useful Lives (years)20252024
Land$76 $72 
Buildings and improvements5-25575 517 
Machinery and equipment5-251,549 1,403 
Software and information technology assets5-15287 272 
Other3-2072 74 
Construction in progress172 116 
Total2,731 2,454 
Accumulated depreciation(1,432)(1,273)
Property, plant and equipment, net$1,299 $1,181 
v3.25.4
OTHER ASSETS (Tables)
12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
Year Ended December 31,
 20252024
Deferred income taxes—non-current119 164 
Business incentive payment assets191 169 
Operating lease ROU assets 112 99 
Other assets (1)
121 124 
Total$543 $556 
(1)Includes a $19 million customer loans entered into during the year ended December 31, 2024 that will be repaid over a 5-year period, of which $4 million is classified as prepaid expenses and other current assets on the consolidated balance sheets.
v3.25.4
ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities
Year Ended December 31,
20252024
Accounts Payable
Trade payables (1)
$577 $603 
Non-income taxes26 26 
Other34 30 
Total$637 $659 
Other Accrued Liabilities
Compensation and other employee-related costs$210 $245 
Restructuring—current26 46 
Discounts, rebates, and warranties (2)
249 246 
Operating lease liabilities31 27 
Income taxes payable49 29 
Other147 82 
Total$712 $675 
(1)Includes $29 million and $28 million at December 31, 2025 and 2024, respectively, payable to banking institutions as part of our supplier financing programs discussed further in Note 17.
(2)Includes $24 million and $27 million at December 31, 2025 and 2024, respectively, of liabilities related to an operational matter discussed further in Note 5.
v3.25.4
SUPPLIER FINANCE PROGRAMS (Tables)
12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Outstanding Supplier Finance Programs
The following table summarizes the amounts outstanding under the SCF and VCA programs:
SCF ProgramVCA Program
Obligations outstanding at December 31, 2024$22 $
Invoices confirmed131 24 
Confirmed invoices paid(131)(24)
Currency impact— 
Obligations outstanding at December 31, 2025$23 $
v3.25.4
BORROWINGS (Tables)
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Debt
Year Ended December 31,
20252024
2029 Dollar Term Loans$1,475 $1,702 
2027 Dollar Senior Notes500 500 
2029 Dollar Senior Notes700 700 
2031 Dollar Senior Notes500 500 
Short-term and other borrowings50 54 
Unamortized original issue discount(9)(13)
Unamortized deferred financing costs(17)(22)
Total borrowings, net3,199 3,421 
Less:
Short-term borrowings
Current portion of long-term borrowings17 17 
Long-term debt$3,179 $3,401 
Schedule of Debt Instrument Redemption We have the option to redeem all or part of the 2027 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, on or after June 15th of the years indicated:
Period2027 Dollar Senior Notes Percentage
2025 and thereafter100.000 %
We have the option to redeem all or part of the 2029 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after February 15th of the years indicated:
Period2029 Dollar Senior Notes Percentage
2025100.844 %
2026 and thereafter100.000 %
We have the option to redeem all or part of the 2031 Dollar Senior Notes at the following redemption prices (expressed as percentages of principal amount) on or after November 15th of the years indicated:
Period2031 Dollar Senior Notes Percentage
2026103.625 %
2027101.813 %
2028 and thereafter100.000 %
Schedule of Maturities of Long-term Debt
Below is a schedule of required future repayments of all borrowings outstanding at December 31, 2025.
2026$20 
2027521 
202821 
20292,129 
2030
Thereafter529 
Total borrowings$3,225 
Unamortized original issue discount(9)
Unamortized deferred financing costs(17)
Total borrowings, net$3,199 
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 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 December 31, 2025 and 2024.
December 31, 2025December 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Prepaid expenses and other current assets:
Cross-currency swaps (1)
— — — 12 — 12 
Other assets:
Cross-currency swaps (1)
— — — — — — 
Investments in equity securities
— — — — 
Liabilities
Other accrued liabilities:
Interest rate swaps (2)
— — — — — — 
Cross-currency swaps (1)
— 51 — 51 — — — — 
Contingent consideration— — — — 
Other liabilities:
Cross-currency swaps (1)
— 50 — 50 — — — — 
Long-term borrowings:
2029 Dollar Term Loans— 1,481 — 1,481 — 1,709 — 1,709 
2027 Dollar Senior Notes— 501 — 501 — 490 — 490 
2029 Dollar Senior Notes— 674 — 674 — 637 — 637 
2031 Dollar Senior Notes— 527 — 527 — 519 — 519 
(1)Net investment hedge
(2)Cash flow hedge
Schedule of Fair Value, Liability Activity
The table below presents a roll forward of activity for the Level 3 liabilities for the year ended December 31, 2025.
Fair Value Using Significant Unobservable Inputs
(Level 3)
Beginning balance at January 1, 2025$
Contingent consideration from business acquisitions
Change in fair value(1)
Foreign currency translation(1)
Ending balance at December 31, 2025$
Schedule of Interest Rate Derivatives
Interest Rate Swaps Designated as Cash Flow Hedges
FormerCurrent
Notional amount$475 $150 $150 $175 
Interest rate pay2.720 %
0.5% - 4.256%
4.692 %3.303 %
Interest rate receive3-month SOFR3-month SOFR3-month SOFR3-month SOFR
Initial effective date4/10/20183/31/20233/27/20249/25/2025
Maximum expiration date3/31/2023
3/31/2024 (1)
9/30/2025 (2)
6/30/2028
(1)    The interest rate swap was terminated early on March 27, 2024.
(2)    The interest rate swap was effectively terminated on September 25, 2025.
Schedule of Derivative Instruments
Cross-Currency Swaps Designated as Net Investment Hedges
FormerCurrent
Notional exchanged$475 $150 $150 $500 $175 $365 
Interest rate receive4.470 %7.256 %6.692 %7.250 %5.053 %3.375 %
Notional received417 142 142 467 166 335 
Interest rate pay1.440 %5.697 %4.899 %5.623 %3.295 %2.040 %
Initial effective date11/07/20183/31/20233/27/202411/17/20239/25/202511/24/2018
Maximum expiration date3/31/2023
3/31/2024 (1)
9/30/2025 (2)
11/15/20266/30/20282/15/2029
(1)    The cross-currency swap was terminated early on March 27, 2024.
(2)    The cross-currency swap was effectively amended on September 25, 2025.
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following tables set forth the locations and amounts recognized during the year ended December 31, 2025, 2024 and 2023 for these cash flow and net investment hedges.
Year Ended December 31,
202520242023
Derivatives in Cash Flow and Net Investment HedgesLocation of (Gain) Loss Recognized in Income on DerivativesNet Amount of (Gain) Loss Recognized in OCI on DerivativesAmount of Gain Recognized in IncomeNet Amount of Loss (Gain) Recognized in OCI on DerivativesAmount of Gain Recognized in IncomeNet Amount of (Gain) Loss Recognized in OCI on DerivativesAmount of Gain Recognized in Income
Interest rate swaps
Interest expense, net(1)— — (2)(4)
Cross-currency swaps
Interest expense, net101 (17)(70)(16)47 (10)
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:
Derivatives Not Designated as
Hedging Instruments under
ASC 815
Location of (Gain) Loss
Recognized in Income on
Derivatives
Year Ended December 31,
202520242023
Foreign currency forward contracts
Other expense, net $(16)$(1)$
v3.25.4
SEGMENTS (Tables)
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment The following table presents relevant information of our reportable segments.
Year Ended December 31,
202520242023
Net sales (1):
Refinish$2,051 $2,164 $2,084 
Industrial1,226 1,291 1,324 
Total Net sales Performance Coatings3,277 3,455 3,408 
Light Vehicle1,438 1,405 1,340 
Commercial Vehicle402 416 436 
Total Net sales Mobility Coatings1,840 1,821 1,776 
Total Net sales$5,117 $5,276 $5,184 
Segment Adjusted EBITDA:
Performance Coatings$788 $838 $742 
Mobility Coatings340 278 209 
Total$1,128 $1,116 $951 
Investment in unconsolidated affiliates:
Performance Coatings$$$
Mobility Coatings11 
Total$12 $11 $11 
(1)The Company has no intercompany sales between segments.
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
The following tables reconcile net sales to Segment Adjusted EBITDA for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, 2025
Performance CoatingsMobility CoatingsTotal
Net sales
$3,277 $1,840 $5,117 
Segment cost of goods sold (1)
1,767 1,180 2,947 
Other segment items (2)
722 320 1,042 
Segment Adjusted EBITDA$788 $340 $1,128 
Year Ended December 31, 2024
Performance CoatingsMobility CoatingsTotal
Net sales
$3,455 $1,821 $5,276 
Segment cost of goods sold (1)
1,849 1,209 3,058 
Other segment items (2)
768 334 1,102 
Segment Adjusted EBITDA$838 $278 $1,116 
Year Ended December 31, 2023
Performance CoatingsMobility CoatingsTotal
Net sales
$3,408 $1,776 $5,184 
Segment cost of goods sold (1)
1,898 1,233 3,131 
Other segment items (2)
768 334 1,102 
Segment Adjusted EBITDA$742 $209 $951 
(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, 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:
Year Ended December 31,
202520242023
Segment Adjusted EBITDA (1):
Performance Coatings$788 $838 $742 
Mobility Coatings340 278 209 
Total1,128 1,116 951 
Interest expense, net176 205 213 
Depreciation and amortization295 280 276 
Debt extinguishment and refinancing-related costs (a)
10 
Termination benefits and other employee-related costs (b)
23 67 18 
Merger and acquisition-related costs (c)
32 11 
Site closure costs (d)
Impairment charges (e)
— — 15 
Foreign exchange remeasurement losses (f)
15 11 23 
Long-term employee benefit plan adjustments (g)
12 
Stock-based compensation (h)
25 28 26 
Gains on sales of assets (i)
(6)— — 
Environmental charges (j)
— 
Other adjustments (k)
— (1)(4)
Income before income taxes$546 $496 $355 
(1)The primary measure of segment operating performance is Segment Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation, amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (i) non-cash items included within net income, (ii) items the Company does not believe are indicative of ongoing operating performance or (iii) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company’s core operating performance, which represents Segment EBITDA adjusted for the select items referred to above.
(a)Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which we do not consider 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. We do not consider these amounts indicative of our ongoing operating performance.
(c)Represents merger and acquisition-related expenses, including business combination, negotiation, documentation and integration activity, associated with both consummated and unconsummated transactions, all of which we do not consider 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 we do not consider indicative of our ongoing operating performance. The losses recorded during the 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 non-recurring income related to the sales of fixed assets.
(j)Represents costs related to certain environmental remediation activities, which we do not consider indicative of our ongoing operating performance.
(k)Represents costs for certain non-operational or non-cash gains, net, unrelated to our core business and which we do not consider indicative of our ongoing operating performance.
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:
Year Ended December 31,
202520242023
North America$1,761 $2,014 $2,038 
EMEA1,824 1,784 1,776 
Asia Pacific902 862 781 
Latin America (1)
630 616 589 
Total (2)
$5,117 $5,276 $5,184 
Net long-lived assets by region were as follows:
Year Ended December 31,
20252024
North America$561 $539 
EMEA420 362 
Asia Pacific185 185 
Latin America (1)
133 95 
Total (3)
$1,299 $1,181 
(1)Includes Mexico.
(2)Net Sales are attributed to countries based on the customer’s location. Sales to customers in China represented approximately 12%, 11% and 10% of the total for the years ended December 31, 2025, 2024 and 2023. Sales to customers in Germany represented approximately 7% of the total for the years ended December 31, 2025, 2024 and 2023. Mexico represented approximately 6% of the total for the year ended December 31, 2025 and 7% for the years ended December 31, 2024 and 2023. Brazil represented approximately 5%, 4% and 3% of the total for the years ended December 31, 2025, 2024 and 2023, respectively. Canada, which is included in the North America region, represented approximately 3% of total for the years ended December 31, 2025, 2024 and 2023.
(3)Long-lived assets consist of property, plant and equipment, net. Germany long-lived assets amounted to approximately $230 million and $204 million at December 31, 2025 and 2024, respectively. China long-lived assets amounted to approximately $156 million at December 31, 2025 and 2024. Mexico long-lived assets amounted to approximately $92 million and $63 million at December 31, 2025 and 2024, respectively. Canada long-lived assets, which are included in the North America region, amounted to approximately $6 million at December 31, 2025 and 2024.
v3.25.4
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
(Loss) Gain on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2024$(517)$(64)$(1)$(582)
Current year deferrals to AOCI222 (8)215 
Reclassifications from AOCI to Net income
(17)— (16)
Net Change205 (7)199 
Balance, December 31, 2025$(312)$(71)$— $(383)
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Loss on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2023$(374)$(70)$— $(444)
Current year deferrals to AOCI(127)(1)(124)
Reclassifications from AOCI to Net income
(16)— (14)
Net Change(143)(1)(138)
Balance, December 31, 2024$(517)$(64)$(1)$(582)
Unrealized
Currency
Translation
Adjustments
Pension Plan
Adjustments
Unrealized
Gain (Loss) on
Derivatives
Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2022$(434)$(36)$$(467)
Current year deferrals to AOCI70 (35)37 
Reclassifications from AOCI to Net income
(10)(5)(14)
Net Change60 (34)(3)23 
Balance, December 31, 2023$(374)$(70)$— $(444)
v3.25.4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)
€ / shares in Units, € in Millions
1 Months Ended
Nov. 30, 2025
EUR (€)
Dec. 31, 2025
$ / shares
Nov. 30, 2025
$ / shares
Nov. 30, 2025
€ / shares
Dec. 31, 2024
$ / shares
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Common shares, par value (in dollars per share) | $ / shares   $ 1.00     $ 1.00
Minimum          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Useful life of intangible asset   3 years      
Maximum          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Useful life of intangible asset   25 years      
Subsidiaries          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Ownership interest in subsidiary   100.00%      
Merger Agreement          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Common shares, par value (in dollars per share) | $ / shares     $ 1.00    
Conversion ratio     0.6539 0.6539  
Akzo Nobel N.V          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Merger termination fee | € € 150        
Akzo Nobel N.V | Merger Agreement          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Common shares, par value (in dollars per share) | € / shares       € 0.50  
Axalta Coating Systems Ltd.          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Merger termination fee | € € 150        
v3.25.4
REVENUE (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
end_market
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Revenue from Contract with Customer [Abstract]      
Contractual arrangements, useful life (in years) 5 years    
Business incentive payment assets $ 191 $ 169  
Amortization amount 64 59 $ 64
Contract asset $ 40 $ 36  
Number of end markets | end_market 4    
v3.25.4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Line Items]      
Acquisitions, net of cash acquired $ 48 $ 301 $ 106
Customer relationships      
Goodwill [Line Items]      
Weighted average amortization periods (years) 18 years 10 months 24 days 19 years 1 month 6 days  
Performance Coatings Segment Acquisition      
Goodwill [Line Items]      
Consideration transferred $ 58    
Acquisitions, net of cash acquired 48    
Cash acquired from acquisition $ 3    
Weighted average amortization periods (years) 10 years    
Performance Coatings Segment Acquisition | Customer relationships      
Goodwill [Line Items]      
Identifiable intangible assets $ 32    
v3.25.4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Schedule of Goodwill (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 1,640 $ 1,591
Goodwill from acquisitions 19 112
Foreign currency translation 136 (63)
Goodwill, ending balance 1,795 1,640
Performance Coatings    
Goodwill [Roll Forward]    
Goodwill, beginning balance 1,566 1,513
Goodwill from acquisitions 19 112
Foreign currency translation 129 (59)
Goodwill, ending balance 1,714 1,566
Mobility Coatings    
Goodwill [Roll Forward]    
Goodwill, beginning balance 74 78
Goodwill from acquisitions 0 0
Foreign currency translation 7 (4)
Goodwill, ending balance $ 81 $ 74
v3.25.4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount $ 1,968 $ 1,838
Accumulated Amortization (821) (689)
Net Book Value, definite-lived 1,147 1,149
Trademarks    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Trademarks—indefinite-lived 275 252
Technology    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount 154 152
Accumulated Amortization (103) (88)
Net Book Value, definite-lived $ 51 $ 64
Weighted average amortization periods (years) 11 years 1 month 6 days 11 years 1 month 6 days
Trademarks    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount $ 164 $ 154
Accumulated Amortization (87) (70)
Net Book Value, definite-lived $ 77 $ 84
Weighted average amortization periods (years) 14 years 1 month 6 days 14 years
Customer relationships    
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Gross Carrying Amount $ 1,375 $ 1,280
Accumulated Amortization (631) (531)
Net Book Value, definite-lived $ 744 $ 749
Weighted average amortization periods (years) 18 years 10 months 24 days 19 years 1 month 6 days
v3.25.4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Schedule of Expected Amortization Expense (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2026 $ 103
2027 102
2028 88
2029 83
2030 $ 83
v3.25.4
RESTRUCTURING - Additional Information (Details)
$ in Millions
12 Months Ended 36 Months Ended
Dec. 31, 2025
USD ($)
employee
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2026
USD ($)
Restructuring Cost and Reserve [Line Items]        
Number of employees in workforce reduction | employee 500      
Expected pretax restructuring charges $ 84      
Approximate employee severance and other cash costs 78      
Accelerated depreciation and site closure costs 6      
Payments for restructuring 51 $ 30 $ 37  
Restructuring charges $ 23 $ 65 $ 4  
Restructuring Incurred Cost Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag employee severance and other exit costs      
Payment term (in months) 12 months      
2024 Transformation Initiative        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ 11      
Minimum | Forecast        
Restructuring Cost and Reserve [Line Items]        
Payments for restructuring       $ 105
Minimum | Forecast | Capital Expenditures        
Restructuring Cost and Reserve [Line Items]        
Payments for restructuring       30
Maximum | Forecast        
Restructuring Cost and Reserve [Line Items]        
Payments for restructuring       115
Maximum | Forecast | Capital Expenditures        
Restructuring Cost and Reserve [Line Items]        
Payments for restructuring       $ 40
v3.25.4
RESTRUCTURING - Schedule of Restructuring and Related Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Reserve [Roll Forward]      
Beginning balance $ 49 $ 16 $ 49
Expense recorded 23 65 4
Payments made (51) (30) (37)
Foreign currency translation 5 (2) 0
Ending balance $ 26 $ 49 $ 16
v3.25.4
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
Maximum exposure $ 24 $ 23
Current carrying value 0 0
Operational matter 0 0
Insurance receivable 26 29
Loss recorded as a liability $ 24 $ 27
v3.25.4
LEASES - Schedule of Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets    
Operating lease ROU assets, net $ 112 $ 99
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Finance lease ROU assets, net $ 44 $ 47
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, plant and equipment, net Property, plant and equipment, net
Total leased assets $ 156 $ 146
Current    
Operating lease liabilities $ 31 $ 27
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other accrued liabilities Other accrued liabilities
Finance lease liabilities $ 3 $ 3
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current portion of borrowings Current portion of borrowings
Noncurrent    
Operating lease liabilities $ 81 $ 73
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Finance lease liabilities $ 47 $ 51
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Long-term borrowings Long-term borrowings
Total lease liabilities $ 162 $ 154
Operating lease asset, net of accumulated amortization 116 89
Finance lease asset, net of accumulated amortization $ 31 $ 26
v3.25.4
LEASES - Schedule of Components of Lease Expenses (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Amortization of right-of-use assets $ 4 $ 5 $ 5
Interest on lease liabilities 3 3 3
Operating lease cost 43 39 39
Variable lease cost 3 3 4
Short-term lease cost 1 1 1
Net lease cost $ 54 $ 51 $ 52
v3.25.4
LEASES - Schedule of Supplemental Cash Flow Information to Leases (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating cash flows for operating leases $ 39 $ 39 $ 40
Operating cash flows for finance leases 3 3 3
Financing cash flows for finance leases 3 3 3
Right-of-use assets obtained in exchange for lease obligations - Operating leases $ 37 $ 23 $ 21
v3.25.4
LEASES - Schedule of Lease Term and Discount Rate (Details)
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Weighted-average remaining lease term (years), Operating leases 5 years 6 months 4 years 7 months 6 days
Weighted-average remaining lease term (years), Finance leases 11 years 3 months 18 days 12 years 2 months 12 days
Weighted-average discount rate, Operating leases 5.00% 5.40%
Weighted-average discount rate, Finance leases 5.30% 5.30%
v3.25.4
LEASES - Schedule of Maturity of Lease Liabilities (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Operating Leases  
2026 $ 37
2027 29
2028 20
2029 11
2030 9
Thereafter 21
Total lease payments 127
Less: imputed interest 15
Present value of lease liabilities 112
Finance Leases  
2026 5
2027 6
2028 6
2029 7
2030 6
Thereafter 40
Total lease payments 70
Less: imputed interest 20
Present value of lease liabilities $ 50
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]      
Percent of actuarial losses in excess of market value or PBO to be Included in periodic benefit costs (exceeding) 10.00%    
Defined contribution plan, employer contribution amount $ 46 $ 44 $ 56
Europe      
Defined Benefit Plan Disclosure [Line Items]      
Pension benefit obligation, percentage by region 85.00%    
Pension Plan      
Defined Benefit Plan Disclosure [Line Items]      
Rate of return on plan assets to determine net cost 4.13%    
Estimated future employer contribution $ 7    
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Defined Benefit Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amounts recognized in the consolidated balance sheets consist of:      
Accrued pensions $ (238) $ (220)  
Pension Plan      
Change in benefit obligation:      
Projected benefit obligation at beginning of year 468 526  
Service cost 7 6 $ 6
Interest cost 19 19 19
Participant contributions 2 2  
Actuarial loss (gain), net 2 (17)  
Plan curtailments, settlements and special termination benefits (11) (9)  
Benefits paid (29) (29)  
Business combinations and other adjustments 2 0  
Foreign currency translation 49 (30)  
Projected benefit obligation at end of year 509 468 526
Change in plan assets:      
Fair value of plan assets at beginning of year 258 281  
Actual return on plan assets 4 0  
Employer contributions 24 24  
Participant contributions 2 2  
Benefits paid (29) (29)  
Settlements (11) (9)  
Foreign currency translation 20 (11)  
Fair value of plan assets at end of year 268 258 $ 281
Funded status, net (241) (210)  
Amounts recognized in the consolidated balance sheets consist of:      
Other assets 14 24  
Other accrued liabilities (17) (14)  
Accrued pensions (238) (220)  
Net amount recognized $ (241) $ (210)  
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Accumulated and Projected Benefit Obligations (Details) - Pension Plan - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]    
ABO $ 485 $ 447
Plans with PBO in excess of plan assets:    
PBO 322 303
ABO 301 283
Fair value plan assets 68 69
Plans with ABO in excess of plan assets:    
PBO 322 293
ABO 301 275
Fair value plan assets $ 68 $ 60
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) - Pension Plan - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]    
Accumulated net actuarial losses $ (99) $ (93)
Accumulated prior service credit (1) 2
Total $ (100) $ (91)
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Net Benefit Cost (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Changes in plan assets and benefit obligations recognized in other comprehensive income:      
Net actuarial loss (gain), net $ 9 $ (8) $ 49
Pension Plan      
Net periodic benefit cost:      
Service cost 7 6 6
Interest cost 19 19 19
Expected return on plan assets (10) (12) (11)
Amortization of actuarial loss, net 3 4 1
Curtailment gain 0 (1) 0
Settlement gain 0 (1) 0
Net periodic benefit cost 19 15 15
Changes in plan assets and benefit obligations recognized in other comprehensive income:      
Net actuarial loss (gain), net 9 (6) 51
Amortization of actuarial loss, net (3) (4) (1)
Prior service credit 2 0 0
Curtailment gain 0 1 0
Settlement gain 0 1 0
Other adjustments 1 0 (1)
Total loss (gain) recognized in other comprehensive income 9 (8) 49
Total recognized in net periodic benefit cost and comprehensive income $ 28 $ 7 $ 64
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Assumptions Used (Details) - Pension Plan
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]      
Discount rate to determine benefit obligation 4.36% 4.06% 3.82%
Discount rate to determine net cost 4.06% 3.82% 4.37%
Rate of future compensation increases to determine benefit obligation 2.94% 2.89% 2.97%
Rate of future compensation increases to determine net cost 2.89% 2.97% 2.98%
Rate of return on plan assets to determine net cost 3.94% 4.47% 4.27%
Cash balance interest credit rate to determine benefit obligation 1.35% 1.08% 1.32%
Cash balance interest credit rate to determine net cost 1.08% 1.32% 1.96%
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Expected Benefit Payments (Details) - Pension Plan
$ in Millions
Dec. 31, 2025
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
2026 $ 35
2027 37
2028 38
2029 44
2030 45
2031 - 2035 $ 227
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Allocation of Plan Assets (Details) - Pension Plan
Dec. 31, 2025
Dec. 31, 2024
Minimum | Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Actual plan asset allocations 0.00% 5.00%
Target Allocation 0.00%  
Minimum | Debt securities    
Defined Benefit Plan Disclosure [Line Items]    
Actual plan asset allocations 5.00% 40.00%
Target Allocation 5.00%  
Minimum | Real estate    
Defined Benefit Plan Disclosure [Line Items]    
Actual plan asset allocations 0.00% 0.00%
Target Allocation 0.00%  
Minimum | Other    
Defined Benefit Plan Disclosure [Line Items]    
Actual plan asset allocations 90.00% 45.00%
Target Allocation 90.00%  
Maximum | Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Actual plan asset allocations 5.00% 10.00%
Target Allocation 5.00%  
Maximum | Debt securities    
Defined Benefit Plan Disclosure [Line Items]    
Actual plan asset allocations 10.00% 45.00%
Target Allocation 10.00%  
Maximum | Real estate    
Defined Benefit Plan Disclosure [Line Items]    
Actual plan asset allocations 5.00% 5.00%
Target Allocation 5.00%  
Maximum | Other    
Defined Benefit Plan Disclosure [Line Items]    
Actual plan asset allocations 95.00% 50.00%
Target Allocation 95.00%  
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Fair Value of Defined Benefit Pension Plan Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 234 $ 110 $ 126
Debt and equity | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 1 10
Insurance contracts and other | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 234 109 116
Pension Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 268 258 $ 281
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 264 251  
Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 26 105  
Pension Plan | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 4 36  
Pension Plan | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 234 110  
Pension Plan | Cash and cash equivalents | Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 10 11  
Pension Plan | Cash and cash equivalents | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 10 11  
Pension Plan | Cash and cash equivalents | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan | Cash and cash equivalents | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan | U.S. equity securities | Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3 14  
Pension Plan | U.S. equity securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3 14  
Pension Plan | U.S. equity securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan | U.S. equity securities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan | Non-U.S. equity securities | Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2 9  
Pension Plan | Non-U.S. equity securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2 9  
Pension Plan | Non-U.S. equity securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan | Non-U.S. equity securities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan | Debt securities—government issued | Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 10 77  
Pension Plan | Debt securities—government issued | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 7 50  
Pension Plan | Debt securities—government issued | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3 26  
Pension Plan | Debt securities—government issued | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 1  
Pension Plan | Debt securities—corporate issued | Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 4 31  
Pension Plan | Debt securities—corporate issued | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 4 21  
Pension Plan | Debt securities—corporate issued | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 10  
Pension Plan | Debt securities—corporate issued | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan | Insurance contracts and other | Fair Value, Inputs, Level 1, 2 and 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 235 109  
Pension Plan | Insurance contracts and other | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Pension Plan | Insurance contracts and other | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1 0  
Pension Plan | Insurance contracts and other | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 234 109  
Pension Plan | Investments measured at NAV | Investments measured at NAV      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 4 $ 7  
v3.25.4
LONG-TERM EMPLOYEE BENEFITS - Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Details) - Level 3 - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Change in plan assets:    
Fair value of plan assets at beginning of year $ 110 $ 126
Realized (loss)   (8)
Purchases, sales, issues and settlements 107 (5)
Transfers in (out of) into Level 3   (3)
Change in unrealized gain 17  
Fair value of plan assets at end of year 234 110
Insurance contracts and other    
Change in plan assets:    
Fair value of plan assets at beginning of year 109 116
Realized (loss)   (7)
Purchases, sales, issues and settlements 108 (2)
Transfers in (out of) into Level 3   2
Change in unrealized gain 17  
Fair value of plan assets at end of year 234 109
Debt and equity    
Change in plan assets:    
Fair value of plan assets at beginning of year 1 10
Realized (loss)   (1)
Purchases, sales, issues and settlements (1) (3)
Transfers in (out of) into Level 3   (5)
Change in unrealized gain 0  
Fair value of plan assets at end of year $ 0 $ 1
v3.25.4
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation $ 25.0 $ 28.0 $ 26.0
Tax benefit from compensation expense 2.0 $ 3.0 $ 3.0
Cash used to settle award $ 4.0    
Granted (in shares) 0 0 0
Exercisable, aggregate intrinsic value $ 0.1    
Average exercise price (in dollars per share) $ 28.68    
Weighted average remaining contractual term 2 years 14 days    
Vested and expected to vest, aggregate intrinsic value $ 1.0    
Net cash flows associated with stock-based awards 1.0    
Tax benefit from exercise of stock options 0.0    
Intrinsic value on options exercised $ 0.0 $ 2.0 $ 3.0
Employee Stock Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expiration period (in years) 10 years    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 600,000    
Award vesting period (in years) 3 years    
Unrecognized compensation cost $ 11.0    
Period for recognition of compensation not yet recognized (in years) 1 year 4 months 24 days    
Aggregate intrinsic value, vested $ 18.0 23.0 26.0
Vested in period, fair value 16.0 20.0 19.0
Tax benefit realized on the vesting of stock $ 0.0    
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 300,000    
Award vesting period (in years) 3 years    
Unrecognized compensation cost $ 13.0    
Period for recognition of compensation not yet recognized (in years) 1 year 8 months 12 days    
Aggregate intrinsic value, vested $ 2.0 $ 1.0 0.0
Vested in period, fair value 1.0   $ 0.0
Tax benefit realized on the vesting of stock $ 0.0    
Service conditions period 3 years    
Performance Shares | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Actual award percent 0.00% 0.00% 0.00%
Performance Shares | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Actual award percent 200.00% 200.00% 200.00%
v3.25.4
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock Units (RSUs)
shares in Millions
12 Months Ended
Dec. 31, 2025
$ / shares
shares
Units (in millions)  
Beginning balance (in shares) | shares 1.0
Granted (in shares) | shares 0.6
Vested (in shares) | shares (0.5)
Forfeited (in shares) | shares (0.2)
Ending balance (in shares) | shares 0.9
Weighted Average Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 31.43
Granted (in dollars per share) | $ / shares 33.79
Vested (in dollars per share) | $ / shares 30.86
Forfeited (in dollars per share) | $ / shares 32.97
Ending balance (in dollars per share) | $ / shares $ 32.91
v3.25.4
STOCK-BASED COMPENSATION - Schedule of Performance Shares Award Outstanding Activity (Details) - Performance Shares
shares in Millions
12 Months Ended
Dec. 31, 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 39.67
Vested (in dollars per share) | $ / shares 30.85
Forfeited (in dollars per share) | $ / shares 33.52
Ending balance (in dollars per share) | $ / shares $ 37.94
v3.25.4
OTHER EXPENSE , NET - Schedule of Other Expense, Net (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income and Expenses [Abstract]      
Foreign exchange losses, net $ 15 $ 11 $ 23
Debt extinguishment and refinancing related costs 2 5 10
Other miscellaneous income, net (4) (11) (13)
Total $ 13 $ 5 $ 20
v3.25.4
INCOME TAXES - Additional Information (Details)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
jurisdiction
$ / shares
Dec. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
$ / shares
Income Tax Disclosure [Abstract]      
Tax expense attributable to tax holiday $ 6 $ 4 $ 4
Tax holiday on diluted net income (in dollars per share) | $ / shares $ 0.03 $ 0.02 $ 0.01
Deferred tax liabilities, undistributed foreign earnings $ 16 $ 14  
Potential U.S. tax cost for repatriation of foreign earnings 147 95  
Tax loss carryforwards related to the impact of the netherlands enacted rate change $ 295 $ 240  
Number of foreign income tax jurisdictions | jurisdiction 49    
v3.25.4
INCOME TAXES - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 29 $ 203 $ 150
Foreign 517 293 205
Income before income taxes $ 546 $ 496 $ 355
v3.25.4
INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current      
Domestic $ 1.0 $ 27.0 $ 33.0
Domestic State 0.0 8.0 9.0
Foreign 121.0 87.0 52.0
Total 122.0 122.0 94.0
Deferred      
Domestic 24.0 7.0 (9.0)
Domestic State 0.0 (1.0) (2.0)
Foreign 21.0 (23.0) 3.0
Total 45.0 (17.0) (8.0)
Domestic 25.0 34.0 24.0
Domestic State 0.0 7.0 7.0
Foreign 142.0 64.0 55.0
Total income tax provision / effective tax rate $ 167.0 $ 105.0 $ 86.0
v3.25.4
INCOME TAXES - Schedule of Income Tax Paid by Jurisdiction (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Contingency [Line Items]      
Income taxes, net of refunds $ 107.0 $ 131.0 $ 97.0
Brazil      
Income Tax Contingency [Line Items]      
Countries with income tax paid 8.0    
China      
Income Tax Contingency [Line Items]      
Countries with income tax paid 22.0    
India      
Income Tax Contingency [Line Items]      
Countries with income tax paid 6.0    
Mexico      
Income Tax Contingency [Line Items]      
Countries with income tax paid 14.0    
United States      
Income Tax Contingency [Line Items]      
Countries with income tax paid 29.0    
Other foreign jurisdictions      
Income Tax Contingency [Line Items]      
Countries with income tax paid $ 28.0    
v3.25.4
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation by Country (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Statutory U.S. federal income tax rate $ 82,000 $ 104,000 $ 75,000
Statutory tax rate differences   (25,000) (29,000)
Other   26,000 (5,000)
Changes in valuation allowances   14,000 38,000
State and local income taxes, net federal tax effect   6,000 5,000
Tax credits   (7,000) (9,000)
Nontaxable and nondeductible items   7,000 7,000
Changes in unrecognized tax benefits 23,000    
Total income tax provision / effective tax rate $ 167,000 $ 105,000 $ 86,000
Percent      
Statutory Bermuda federal income tax rate 15.00% 21.00% 21.00%
Statutory tax rate differences   (5.10%) (8.20%)
Other   5.20% (1.10%)
Changes in valuation allowance   2.70% 10.70%
State and local income taxes, net federal tax effect   1.20% 1.50%
Tax credits   (1.40%) (2.50%)
Nontaxable and nondeductible items   1.50% 1.90%
Changes in unrecognized tax benefits 4.20%    
Total income tax provision / effective tax rate 30.60% 21.10% 24.30%
Brazil      
Amount      
Statutory tax rate differences $ 4,000    
Foreign taxes $ 4,000    
Percent      
Statutory tax rate differences 0.80%    
Foreign taxes 0.80%    
China      
Amount      
Statutory tax rate differences $ 9,000    
Other $ 3,000    
Percent      
Statutory tax rate differences 1.60%    
Other 0.60%    
Germany      
Amount      
Other $ (1,000)    
Trade tax 5,000    
Enactment of new tax laws $ (5,000)    
Percent      
Other (0.20%)    
Trade tax 0.90%    
Enactment of new tax laws (0.90%)    
Luxembourg      
Amount      
Other $ (3,000)    
Nondeductible foreign exchange gains and losses $ 10,000    
Percent      
Other (0.50%)    
Nondeductible foreign exchange gains and losses 1.80%    
Netherlands      
Amount      
Statutory tax rate differences $ (4,000)    
Other (5,000)    
Nondeductible foreign exchange gains and losses $ 7,000    
Percent      
Statutory tax rate differences (0.70%)    
Other (0.90%)    
Nondeductible foreign exchange gains and losses 1.30%    
Switzerland      
Amount      
Statutory tax rate differences $ (20,000)    
Foreign taxes 4,000    
Other (2,000)    
Cantonal tax 7,000    
Deductible impairment loss $ (5,000)    
Percent      
Statutory tax rate differences (3.70%)    
Foreign taxes 0.80%    
Other (0.40%)    
Cantonal tax 1.30%    
Deductible impairment loss (0.90%)    
United Kingdom      
Amount      
Statutory tax rate differences $ (6,000)    
Changes in valuation allowances $ 3,000    
Percent      
Statutory tax rate differences (1.10%)    
Changes in valuation allowance 0.50%    
United States      
Amount      
Statutory tax rate differences $ 7,000    
State and local income taxes, net federal tax effect 4,000    
Tax credits (6,000)    
Nontaxable and nondeductible items $ 9,000    
Percent      
Statutory tax rate differences 1.30%    
State and local income taxes, net federal tax effect 0.70%    
Tax credits (1.10%)    
Nontaxable and nondeductible items 1.60%    
Mexico      
Amount      
Statutory tax rate differences $ 7,000    
Percent      
Statutory tax rate differences 1.30%    
Other foreign jurisdictions      
Amount      
Other $ 16,000    
Percent      
Other 2.80%    
BERMUDA      
Amount      
Changes in valuation allowances $ 19,000    
Nontaxable and nondeductible items $ 1,000    
Percent      
Changes in valuation allowance 3.50%    
Nontaxable and nondeductible items 0.20%    
v3.25.4
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Statutory U.S. federal income tax rate $ 82.0 $ 104.0 $ 75.0
Foreign income taxed at rates other than U.S. statutory rate   (25.0) (29.0)
Changes in valuation allowances   14.0 38.0
Foreign exchange gains and losses   (14.0) 1.0
Unrecognized tax benefits   13.0 (6.0)
Foreign taxes   8.0 9.0
Non-deductible expenses   7.0 7.0
Tax credits   (7.0) (9.0)
U.S. state and local taxes, net   6.0 5.0
Bermuda CITA   (27.0) 0.0
Other   26.0 (5.0)
Total income tax provision / effective tax rate $ 167.0 $ 105.0 $ 86.0
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Statutory Bermuda federal income tax rate 15.00% 21.00% 21.00%
Foreign income taxed at rates other than U.S. statutory rate   (5.10%) (8.20%)
Changes in valuation allowance   2.70% 10.70%
Foreign exchange gains and losses   (2.70%) 0.20%
Unrecognized tax benefits   2.60% (1.70%)
Foreign taxes   1.60% 2.50%
Nontaxable and nondeductible items   1.50% 1.90%
Tax credits   (1.40%) (2.50%)
State and local income taxes, net federal tax effect   1.20% 1.50%
Bermuda CITA   (5.50%) 0.00%
Other   5.20% (1.10%)
Total income tax provision / effective tax rate 30.60% 21.10% 24.30%
Netherlands      
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Foreign income taxed at rates other than U.S. statutory rate $ (4.0)    
Other $ (5.0)    
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Foreign income taxed at rates other than U.S. statutory rate (0.70%)    
Other (0.90%)    
Increase to unrecognized tax benefits, tax expense   $ 26.0  
Unrecognized tax benefits, adjustment to prior year tax filing position   $ 26.0  
v3.25.4
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred tax asset    
Tax loss, credit and interest carryforwards $ 437 $ 361
Compensation and employee benefits 62 68
Accruals and other reserves 38 34
Research and development capitalization 35 53
Equity investment and other securities 5 0
Leases 41 38
Other 8 1
Total deferred tax assets 626 555
Less: valuation allowance (337) (250)
Total deferred tax assets, net of valuation allowance 289 305
Deferred tax liabilities    
Goodwill and intangibles (164) (126)
Property, plant and equipment (146) (143)
Unremitted earnings (16) (14)
Accounts receivable and other assets (15) (7)
Equity investment and other securities 0 (2)
Total deferred tax liabilities (341) (292)
Net deferred tax (liability) asset (52)  
Net deferred tax (liability) asset   13
Deferred Tax Assets And Liabilities [Abstract]    
Non-current assets 119 164
Non-current liability $ (171) $ (151)
v3.25.4
INCOME TAXES - Schedule of Tax loss, tax credit and interest carryforwards (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Operating Loss Carryforwards [Line Items]    
Total tax loss, tax credit and interest carryforwards $ 437 $ 361
Expire within 10 years    
Operating Loss Carryforwards [Line Items]    
Tax loss carryforwards (tax effected) 49 20
Tax credit carryforwards 1 1
Interest carryforwards 1 1
Expire after 10 years or indefinite carryforward    
Operating Loss Carryforwards [Line Items]    
Tax loss carryforwards (tax effected) 201 175
Tax credit carryforwards 7 1
Interest carryforwards $ 178 $ 163
v3.25.4
INCOME TAXES - Schedule of Valuation Allowance (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Valuation Allowance [Line Items]    
Total valuation allowance $ 337 $ 250
Domestic (1)    
Valuation Allowance [Line Items]    
Total valuation allowance 27 4
Foreign    
Valuation Allowance [Line Items]    
Total valuation allowance $ 310 $ 246
v3.25.4
INCOME TAXES - Schedule of Total Gross Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Beginning Balance $ 107 $ 96 $ 98
Increases related to acquisitions 0 0 0
Increases related to positions taken on items from prior years 28 5 2
Decreases related to positions taken on items from prior years (2) (3) (5)
Increases related to positions taken in the current year 9 10 12
Settlement of uncertain tax positions with tax authorities (2) 0 (1)
Decrease due to expiration of statues of limitations (41) (1) (10)
Ending Balance 99 107 96
Total accrual for interest and penalties associated with unrecognized tax benefits 13 6 5
Total gross unrecognized tax benefits at December 31, including interest and penalties 112 113 101
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate 73 50 42
Interest and penalties included as components of the Provision for income taxes $ 6 $ 1 $ (1)
v3.25.4
NET INCOME PER COMMON SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income to common shareholders $ 378 $ 391 $ 267
Basic weighted average shares outstanding (in shares) 216.0 219.3 221.0
Diluted weighted average shares outstanding (in shares) 217.0 220.4 221.9
Net income per common share      
Basic net income per share (in dollars per share) $ 1.75 $ 1.78 $ 1.21
Diluted net income per share (in dollars per share) $ 1.74 $ 1.78 $ 1.21
v3.25.4
NET INCOME PER COMMON SHARE - Additional Information (Details) - shares
shares in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Antidilutive securities excluded from computation of earnings per share (in shares) 0.2 0.1 0.4
v3.25.4
ACCOUNTS AND NOTES RECEIVABLE, NET - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Receivables [Abstract]    
Accounts receivable—trade, net $ 1,014 $ 1,015
Notes receivable 32 92
Other 183 141
Total 1,229 1,248
Allowance for doubtful accounts 29 25
Insurance receivable $ 26 $ 29
v3.25.4
ACCOUNTS AND NOTES RECEIVABLE, NET - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Receivables [Abstract]      
Bad debt expense (benefit) net of recoveries $ 9 $ 9 $ 5
v3.25.4
INVENTORIES - Schedule of Inventory (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Finished products $ 431 $ 391
Semi-finished products 122 124
Raw materials 168 189
Stores and supplies 35 30
Total $ 756 $ 734
v3.25.4
INVENTORIES - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Inventory reserves $ 22 $ 17
v3.25.4
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net $ 2,731 $ 2,454
Accumulated depreciation (1,432) (1,273)
Property, plant and equipment, net 1,299 1,181
Land    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net 76 72
Buildings and improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net 575 517
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net 1,549 1,403
Software and information technology assets    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net 287 272
Other    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net 72 74
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net $ 172 $ 116
Minimum | Buildings and improvements    
Property, Plant and Equipment [Line Items]    
Useful Lives (years) 5 years  
Minimum | Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Useful Lives (years) 5 years  
Minimum | Software and information technology assets    
Property, Plant and Equipment [Line Items]    
Useful Lives (years) 5 years  
Minimum | Other    
Property, Plant and Equipment [Line Items]    
Useful Lives (years) 3 years  
Maximum | Buildings and improvements    
Property, Plant and Equipment [Line Items]    
Useful Lives (years) 25 years  
Maximum | Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Useful Lives (years) 25 years  
Maximum | Software and information technology assets    
Property, Plant and Equipment [Line Items]    
Useful Lives (years) 15 years  
Maximum | Other    
Property, Plant and Equipment [Line Items]    
Useful Lives (years) 20 years  
v3.25.4
PROPERTY, PLANT AND EQUIPMENT, NET - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Abstract]      
Depreciation $ 131 $ 127 $ 121
Capitalized interest $ 7 $ 4 $ 6
v3.25.4
OTHER ASSETS - Schedule of Other Assets (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2025
Business incentive plan assets [Line Items]    
Deferred income taxes—non-current $ 164 $ 119
Business incentive payment assets 169 191
Operating lease ROU assets 99 112
Other assets 124 121
Total 556 $ 543
Customer loan $ 19  
Amortized asset useful life (in years) 5 years  
Prepaid expenses and other current assets    
Business incentive plan assets [Line Items]    
Customer loan $ 4  
v3.25.4
ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Accounts Payable    
Trade payables $ 577 $ 603
Non-income taxes 26 26
Other 34 30
Total 637 659
Other Accrued Liabilities    
Compensation and other employee-related costs 210 245
Restructuring—current 26 46
Discounts, rebates, and warranties 249 246
Operating lease liabilities 31 27
Income taxes payable 49 29
Other 147 82
Other accrued liabilities 712 675
Payable to banking institutions 29 28
Loss recorded as a liability $ 24 $ 27
v3.25.4
SUPPLIER FINANCE PROGRAMS - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Supplier Finance Program [Line Items]      
Supplier finance program obligation statement of financial position extensible enumeration not disclosed flag supplier invoices supplier invoices  
Short-term borrowings $ 3 $ 3  
Repayments of short-term debt $ 0 5 $ 50
Supplier Financing Arrangements      
Supplier Finance Program [Line Items]      
Debt instrument, term 90 days    
Convertible debt $ 0 0  
Short-term borrowings     4
Repayments of short-term debt 0 4 42
SCF Program      
Supplier Finance Program [Line Items]      
Supplier finance program, obligation 23 22  
VCA Program      
Supplier Finance Program [Line Items]      
Supplier finance program, obligation $ 6 $ 6  
Supplier financing program obligation, payment term 25 days    
Property, Plant, and Equipment Purchases | Supplier Financing Arrangements      
Supplier Finance Program [Line Items]      
Short-term borrowings     $ 1
v3.25.4
SUPPLIER FINANCE PROGRAMS - Schedule of Outstanding Supplier Finance Programs (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
SCF Program  
Supplier Finance Program, Obligation [Roll Forward]  
Obligations outstanding at December 31, 2024 $ 22
Invoices confirmed 131
Confirmed invoices paid (131)
Currency impact 1
Obligations outstanding at December 31, 2025 23
VCA Program  
Supplier Finance Program, Obligation [Roll Forward]  
Obligations outstanding at December 31, 2024 6
Invoices confirmed 24
Confirmed invoices paid (24)
Currency impact 0
Obligations outstanding at December 31, 2025 $ 6
v3.25.4
BORROWINGS - Schedule of Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 20, 2022
Debt Instrument [Line Items]      
Short-term and other borrowings $ 50 $ 54  
Unamortized original issue discount (9) (13)  
Unamortized deferred financing costs (17) (22)  
Total borrowings, net 3,199 3,421  
Short-term borrowings 3 3  
Current portion of long-term borrowings 17 17  
Long-term debt 3,179 3,401  
2029 Dollar Term Loans      
Debt Instrument [Line Items]      
2029 Dollar Term Loans 1,475 1,702  
Unamortized original issue discount     $ (20)
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  
v3.25.4
BORROWINGS - Senior Secured Credit Facilities (Details)
1 Months Ended 12 Months Ended
Oct. 30, 2024
Feb. 29, 2024
Dec. 20, 2022
USD ($)
Jun. 28, 2019
Feb. 03, 2014
USD ($)
Nov. 30, 2024
Mar. 31, 2024
Nov. 30, 2023
USD ($)
Aug. 31, 2023
Dec. 31, 2025
USD ($)
day
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 30, 2024
USD ($)
May 31, 2024
USD ($)
Debt Instrument [Line Items]                            
Proceeds from maturities, prepayments and calls of other investments (more than)         $ 75,000,000                  
Percentage on excess cash flow for mandatory prepayments of debt         50.00%                  
Decrease in percentage on excess cash flow for mandatory prepayments of debt         25.00%                  
Percentage on first lien leverage ratio for mandatory prepayments of debt         0.00%                  
First lien leverage ratio upper limit         4.25                  
First lien leverage ratio lower limit         3.50         5.50        
Unamortized discount                   $ 9,000,000 $ 13,000,000      
Loss on extinguishment of debt               $ 2,000,000            
Repayments of long-term debt                   230,000,000 420,000,000 $ 904,000,000    
Amortization of deferred financing costs and original issue discount                   $ 8,000,000 7,000,000 9,000,000    
Revolving Credit Facility                            
Debt Instrument [Line Items]                            
Line of credit facility | day                   91        
Percent of credit facility outstanding for accelerated maturity                   35.00%        
Percent not cash collateralized                   103.00%        
Letters of credit outstanding, amount                   $ 30,000,000 22,000,000      
Revolving credit facility                   0 0      
Line of credit facility, remaining borrowing capacity                   770,000,000 778,000,000      
Line of credit facility, maximum borrowing capacity                         $ 800,000,000 $ 550,000,000
Incremental deferred financing costs                     4,000,000      
2029 Dollar Term Loans                            
Debt Instrument [Line Items]                            
Discount, percent of par     99.00%                      
Unamortized discount     $ 20,000,000                      
Debt instrument periodic payment principal percentage     1.00%                      
Debt instrument, basis spread on variable rate 2.00% 2.50%       1.75% 2.00%              
Outstanding principal amount                   210,000,000 75,000,000      
Loss on extinguishment of debt                   $ 2,000,000 1,000,000 3,000,000    
Loss on financing-related costs                     2,000,000 4,000,000    
Repayments of long-term debt                       200,000,000    
Write off of deferred debt issuance cost                       2,000,000    
Amortization of deferred financing costs and original issue discount                       $ 2,000,000    
2029 Dollar Term Loans | Base Rate                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate                   1.50%        
2029 Dollar Term Loans | Secured Overnight Financing Rate (SOFR)                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate                 2.50%     3.00%    
2029 Dollar Term Loans | Eurocurrency Rate Loans                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate                   1.75%        
2029 Dollar Term Loans | Eurocurrency Rate Loans | Interest Rate Floor                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate                   50.00%        
Senior Secured Credit Facilities | Revolving Credit Facility | Leverage Ratio Between 1.25 and 2.25                            
Debt Instrument [Line Items]                            
First lien leverage ratio upper limit       2.50                    
First lien leverage ratio lower limit       1.50                    
Debt instrument, leverage ratio increase       0.25%                    
Senior Secured Credit Facilities | Revolving Credit Facility | Leverage Ratio Greater Than 2.25                            
Debt Instrument [Line Items]                            
First lien leverage ratio lower limit       2.50                    
Debt instrument, leverage ratio increase       0.25%                    
Senior Secured Credit Facilities | Base Rate | Revolving Credit Facility                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate       0.50%                    
Senior Secured Credit Facilities | Eurodollar | Revolving Credit Facility                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate       1.50%                    
Customer Obligation Guarantees | Revolving Credit Facility                            
Debt Instrument [Line Items]                            
Letters of credit outstanding, amount                   $ 14,000,000 $ 14,000,000      
2031 Dollar Senior Notes                            
Debt Instrument [Line Items]                            
Repayments of long-term debt               $ 489,000,000            
v3.25.4
BORROWINGS - Senior Notes (Details)
€ in Millions, $ in Millions
1 Months Ended 12 Months Ended
Nov. 30, 2023
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Nov. 30, 2023
EUR (€)
Aug. 16, 2016
Debt Instrument [Line Items]            
Repayments of long-term debt   $ 230 $ 420 $ 904    
Debt instrument, fee amount $ 8          
Payments of debt issuance costs 6          
Accrued interest 1          
Loss on extinguishment of debt $ 2          
2027 Dollar Senior Notes            
Debt Instrument [Line Items]            
Debt instrument, interest rate, stated percentage   4.75%        
Redemption price, percentage if change in control occurs   101.00%        
2029 Dollar Senior Notes            
Debt Instrument [Line Items]            
Debt instrument, interest rate, stated percentage   3.375%       3.375%
Redemption price, percentage if change in control occurs   101.00%        
2031 Dollar Senior Notes            
Debt Instrument [Line Items]            
Debt instrument, interest rate, stated percentage 3.75% 7.25%     3.75%  
Redemption price, percentage if change in control occurs   101.00%        
Debt instrument, redemption price, percentage   107.25%        
Redemption, percent of principal required to be outstanding   50.00%        
Debt instrument, face amount $ 500       € 450  
Repayments of long-term debt $ 489          
2031 Dollar Senior Notes | Any Time Prior To November 15, 2026            
Debt Instrument [Line Items]            
Redemption price, percentage of principal amount redeemed   40.00%        
v3.25.4
BORROWINGS - Schedule of Debt Instrument Redemption (Details)
12 Months Ended
Dec. 31, 2025
2027 Dollar Senior Notes | Period One  
Debt Instrument, Redemption [Line Items]  
Debt instrument, redemption price, percentage 100.00%
2029 Dollar Senior Notes | Period One  
Debt Instrument, Redemption [Line Items]  
Debt instrument, redemption price, percentage 100.844%
2029 Dollar Senior Notes | Period Two  
Debt Instrument, Redemption [Line Items]  
Debt instrument, redemption price, percentage 100.00%
2031 Dollar Senior Notes | Period Two  
Debt Instrument, Redemption [Line Items]  
Debt instrument, redemption price, percentage 103.625%
2031 Dollar Senior Notes | Period Three  
Debt Instrument, Redemption [Line Items]  
Debt instrument, redemption price, percentage 101.813%
2031 Dollar Senior Notes | Period Four  
Debt Instrument, Redemption [Line Items]  
Debt instrument, redemption price, percentage 100.00%
v3.25.4
BORROWINGS - Schedule of Maturities of Long-term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
2026 $ 20  
2027 521  
2028 21  
2029 2,129  
2030 5  
Thereafter 529  
Total borrowings 3,225  
Unamortized original issue discount (9) $ (13)
Unamortized deferred financing costs (17) (22)
Total borrowings, net $ 3,199 $ 3,421
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Schedule of Fair Value of Financial Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for sale securities $ 1 $ 1
2029 Dollar Term Loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans payable 1,481 1,709
2027 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 501 490
2029 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 674 637
2031 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 527 519
Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration, fair value 6 2
Interest rate swaps | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 1
Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 5 12
Cross-currency swaps | Other assets | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0 5
Cross-currency swaps | Other accured liabilities | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 51 0
Cross-currency swaps | Other Liabilities | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 50 0
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for sale securities 1 1
Level 1 | 2029 Dollar Term Loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans payable 0 0
Level 1 | 2027 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 0 0
Level 1 | 2029 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 0 0
Level 1 | 2031 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 0 0
Level 1 | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration, fair value 0 0
Level 1 | Interest rate swaps | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 0
Level 1 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0 0
Level 1 | Cross-currency swaps | Other assets | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0 0
Level 1 | Cross-currency swaps | Other accured liabilities | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 0
Level 1 | Cross-currency swaps | Other Liabilities | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for sale securities 0 0
Level 2 | 2029 Dollar Term Loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans payable 1,481 1,709
Level 2 | 2027 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 501 490
Level 2 | 2029 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 674 637
Level 2 | 2031 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 527 519
Level 2 | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration, fair value 0 0
Level 2 | Interest rate swaps | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 1
Level 2 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 5 12
Level 2 | Cross-currency swaps | Other assets | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0 5
Level 2 | Cross-currency swaps | Other accured liabilities | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 51 0
Level 2 | Cross-currency swaps | Other Liabilities | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 50 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for sale securities 0 0
Level 3 | 2029 Dollar Term Loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans payable 0 0
Level 3 | 2027 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 0 0
Level 3 | 2029 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 0 0
Level 3 | 2031 Dollar Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notes payable 0 0
Level 3 | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration, fair value 6 2
Level 3 | Interest rate swaps | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 0
Level 3 | Cross-currency swaps | Prepaid expenses and other current assets | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0 0
Level 3 | Cross-currency swaps | Other assets | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0 0
Level 3 | Cross-currency swaps | Other accured liabilities | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 0
Level 3 | Cross-currency swaps | Other Liabilities | Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability $ 0 $ 0
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Schedule of Liability Activity (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]  
Beginning balance $ 2
Contingent consideration from business acquisitions 6
Change in fair value (1)
Foreign currency translation (1)
Ending balance $ 6
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Designated as Hedging Instrument
€ in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Initial Effective Date On April 10 2018    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 475  
Initial Effective Date On April 10 2018 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 2.72% 2.72%
Initial Effective Date On April 10 2018 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate receive 3-month SOFR  
Initial Effective Date On March 31 2023    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 150  
Initial Effective Date On March 31 2023 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   € 142
Initial Effective Date On March 31 2023 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 150  
Interest rate receive 3-month SOFR  
Initial Effective Date On March 31 2023 | Minimum | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 0.50% 0.50%
Initial Effective Date On March 31 2023 | Maximum | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 4.256% 4.256%
Initial Effective Date On March 27, 2024    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 150  
Initial Effective Date On March 27, 2024 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   € 142
Interest rate pay 4.692% 4.692%
Initial Effective Date On March 27, 2024 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 150  
Interest rate receive 3-month SOFR  
Initial Effective Date On September 25 2025    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 175  
Initial Effective Date On September 25 2025 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   € 166
Interest rate pay 3.303% 3.303%
Initial Effective Date On September 25 2025 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 175  
Interest rate receive 3-month SOFR  
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Cross-Currency Swaps Designated as Net Investment Hedges (Details) - Designated as Hedging Instrument
€ in Millions, $ in Millions
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Initial Effective Date On November 7 2018 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 475  
Initial Effective Date On November 7 2018 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   € 417
Initial Effective Date On March 31 2023    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount 150  
Initial Effective Date On March 31 2023 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount 150  
Initial Effective Date On March 31 2023 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   142
Initial Effective Date On March 27, 2024    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount 150  
Initial Effective Date On March 27, 2024 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 150  
Initial Effective Date On March 27, 2024 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   € 142
Interest rate pay 4.692% 4.692%
Initial Effective Date On November 17 2023 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 500  
Initial Effective Date On November 17 2023 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   € 467
Initial Effective Date On September 25 2025    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount 175  
Initial Effective Date On September 25 2025 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 175  
Initial Effective Date On September 25 2025 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   € 166
Interest rate pay 3.303% 3.303%
Initial Effective Date On November 24 2018 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 365  
Initial Effective Date On November 24 2018 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount | €   € 335
USD To Euro Currency Swap, Initial Effective Date On November 7 2018 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 4.47% 4.47%
USD To Euro Currency Swap, Initial Effective Date On November 7 2018 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 1.44% 1.44%
USD To Euro Currency Swap, Initial Effective Date On March 31 2023 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 7.256% 7.256%
USD To Euro Currency Swap, Initial Effective Date On March 31 2023 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 5.697% 5.697%
USD To Euro Currency Swap, Initial Effective Date On March 27 2024 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 6.692% 6.692%
USD To Euro Currency Swap, Initial Effective Date On March 27 2024 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 4.899% 4.899%
USD To Euro Currency Swap, Initial Effective Date On November 17 2023 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 7.25% 7.25%
USD To Euro Currency Swap, Initial Effective Date On November 17 2023 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 5.623% 5.623%
USD To Euro Currency Swap, Initial Effective Date On September 25 2025 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 5.053% 5.053%
USD To Euro Currency Swap, Initial Effective Date On September 25 2025 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 3.295% 3.295%
USD To Euro Currency Swap, Initial Effective Date On November 24 2018 | Short    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 3.375% 3.375%
USD To Euro Currency Swap, Initial Effective Date On November 24 2018 | Long    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate pay 2.04% 2.04%
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Derivative Locations and Amounts Recognized (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Net Amount of (Gain) Loss Recognized in OCI on Derivatives $ (1) $ 1 $ 2
Interest rate swaps      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Net Amount of (Gain) Loss Recognized in OCI on Derivatives (1) 1 (2)
Cross-currency swaps      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Net Amount of (Gain) Loss Recognized in OCI on Derivatives 101 (70) 47
Interest expense, net | Interest rate swaps      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Amount of Gain Recognized in Income 0 0 (4)
Interest expense, net | Cross-currency swaps      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Amount of Gain Recognized in Income $ (17) $ (16) $ (10)
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Additional Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Fair Value Disclosures [Abstract]  
Cash flow hedge to be reclassified in 12 months $ 0.0
v3.25.4
FINANCIAL INSTRUMENTS, HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS - Instruments Not Designated as Hedge (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Foreign currency forward contracts | Interest expense, net      
Derivative [Line Items]      
Derivatives not designated as hedging $ (16) $ (1) $ 1
v3.25.4
SEGMENTS - Additional Information (Details)
12 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Number of operating segments 2
Number of reportable segments 2
v3.25.4
SEGMENTS - Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Net sales $ 5,117 $ 5,276 $ 5,184
Segment Adjusted EBITDA 1,128 1,116 951
Investment in unconsolidated affiliates 12 11 11
Intercompany sales between segments 0 0 0
Performance Coatings      
Segment Reporting Information [Line Items]      
Net sales 3,277 3,455 3,408
Segment Adjusted EBITDA 788 838 742
Investment in unconsolidated affiliates 1 2 2
Mobility Coatings      
Segment Reporting Information [Line Items]      
Net sales 1,840 1,821 1,776
Segment Adjusted EBITDA 340 278 209
Investment in unconsolidated affiliates 11 9 9
Refinish | Performance Coatings      
Segment Reporting Information [Line Items]      
Net sales 2,051 2,164 2,084
Industrial | Performance Coatings      
Segment Reporting Information [Line Items]      
Net sales 1,226 1,291 1,324
Light Vehicle | Mobility Coatings      
Segment Reporting Information [Line Items]      
Net sales 1,438 1,405 1,340
Commercial Vehicle | Mobility Coatings      
Segment Reporting Information [Line Items]      
Net sales $ 402 $ 416 $ 436
v3.25.4
SEGMENTS - Net Sales to Segment Adjusted EBITDA (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Net sales $ 5,117 $ 5,276 $ 5,184
Segment cost of goods sold 3,355 3,478 3,566
Segment Adjusted EBITDA 1,128 1,116 951
Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Net sales 5,117 5,276 5,184
Segment cost of goods sold 2,947 3,058 3,131
Other segment items 1,042 1,102 1,102
Segment Adjusted EBITDA 1,128 1,116 951
Performance Coatings      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Net sales 3,277 3,455 3,408
Segment Adjusted EBITDA 788 838 742
Performance Coatings | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Net sales 3,277 3,455 3,408
Segment cost of goods sold 1,767 1,849 1,898
Other segment items 722 768 768
Segment Adjusted EBITDA 788 838 742
Mobility Coatings      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Net sales 1,840 1,821 1,776
Segment Adjusted EBITDA 340 278 209
Mobility Coatings | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Net sales 1,840 1,821 1,776
Segment cost of goods sold 1,180 1,209 1,233
Other segment items 320 334 334
Segment Adjusted EBITDA $ 340 $ 278 $ 209
v3.25.4
SEGMENTS - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Segment Adjusted EBITDA $ 1,128 $ 1,116 $ 951
Interest expense, net 176 205 213
Depreciation and amortization 295 280 276
Debt extinguishment and refinancing-related costs 2 5 10
Termination benefits and other employee-related costs 23 67 18
Acquisition and divestiture-related costs 32 11 3
Site closure costs 6 1 7
Impairment charges 0 0 15
Foreign exchange remeasurement losses 15 11 23
Long-term employee benefit plan adjustments 12 9 9
Stock-based compensation 25 28 26
Gains on sales of assets (6) 0 0
Environmental charges 2 4 0
Other adjustments 0 (1) (4)
Income before income taxes 546 496 355
Performance Coatings      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Segment Adjusted EBITDA 788 838 742
Mobility Coatings      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Segment Adjusted EBITDA $ 340 $ 278 $ 209
v3.25.4
SEGMENTS - Schedule of Revenue from External Customers and Long-lived Assets, by Geographical Areas (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales $ 5,117 $ 5,276 $ 5,184
Long-lived assets 1,299 1,181  
North America      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 1,761 2,014 2,038
Long-lived assets 561 539  
EMEA      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 1,824 1,784 1,776
Long-lived assets 420 362  
Asia Pacific      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 902 862 781
Long-lived assets 185 185  
Latin America      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 630 616 $ 589
Long-lived assets 133 95  
China      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long-lived assets $ 156 $ 156  
China | Sales Revenue, Net | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 12.00% 11.00% 10.00%
Germany      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long-lived assets $ 230 $ 204  
Germany | Sales Revenue, Net | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 7.00% 7.00% 7.00%
Mexico      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long-lived assets $ 92 $ 63  
Mexico | Sales Revenue, Net | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 6.00% 7.00% 7.00%
Brazil | Sales Revenue, Net | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 5.00% 4.00% 3.00%
Canada      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long-lived assets $ 6 $ 6  
Canada | Sales Revenue, Net | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 3.00% 3.00% 3.00%
v3.25.4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance $ 1,956 $ 1,773 $ 1,500
Other comprehensive income (loss), net of tax 202 (139) 21
Ending balance 2,393 1,956 1,773
Unrealized Currency Translation Adjustments      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance (517) (374) (434)
Current year deferrals to AOCI 222 (127) 70
Reclassifications from AOCI to Net income (17) (16) (10)
Other comprehensive income (loss), net of tax 205 (143) 60
Ending balance (312) (517) (374)
Pension Plan Adjustments      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance (64) (70) (36)
Current year deferrals to AOCI (8) 4 (35)
Reclassifications from AOCI to Net income 1 2 1
Other comprehensive income (loss), net of tax (7) 6 (34)
Ending balance (71) (64) (70)
Unrealized (Loss) Gain on Derivatives      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance (1) 0 3
Current year deferrals to AOCI 1 (1) 2
Reclassifications from AOCI to Net income 0 0 (5)
Other comprehensive income (loss), net of tax 1 (1) (3)
Ending balance 0 (1) 0
Accumulated Other Comprehensive Loss      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance (582) (444) (467)
Current year deferrals to AOCI 215 (124) 37
Reclassifications from AOCI to Net income (16) (14) (14)
Other comprehensive income (loss), net of tax 199 (138) 23
Ending balance $ (383) $ (582) $ (444)
v3.25.4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity [Abstract]      
Cumulative income tax expense (benefit) on foreign exchange adjustments $ 1 $ 1 $ (1)
Cumulative income tax benefits related to adjustments for pension benefits 29 27 29
Cumulative income tax expense (benefit) related to adjustments for unrealized gain (loss) on derivatives $ 0 $ 0 $ 0
v3.25.4
Schedule II (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
SEC Schedule, 12-09, Allowance, Credit Loss      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year $ 25 $ 25 $ 23
Additions 9 9 5
Deductions (5) (9) (3)
Balance at End of Year 29 25 25
SEC Schedule, 12-09, Reserve, Inventory      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 17 27 17
Additions 37 36 49
Deductions (32) (46) (39)
Balance at End of Year 22 17 27
Valuation Allowance for Deferred Tax Assets      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 250 234 194
Additions 87 33 41
Deductions 0 (17) (1)
Balance at End of Year $ 337 $ 250 $ 234