Axalta Coating Systems Ltd. Files 2023 Annual Report (10-K)

TL;DR

<b>Axalta Coating Systems Ltd. has submitted its 2023 10-K annual report detailing its financial performance and operations.</b>

AI Summary

Axalta Coating Systems Ltd. (AXTA) filed a Annual Report (10-K) with the SEC on February 15, 2024. Axalta Coating Systems Ltd. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is in Paints, Varnishes, Lacquers, Enamels & Allied Products. Axalta Coating Systems Ltd. is incorporated in Delaware (D0). The filing was submitted on February 15, 2024.

Why It Matters

For investors and stakeholders tracking Axalta Coating Systems Ltd., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Axalta's financial health and strategic positioning for the past fiscal year, crucial for investors assessing its performance. The detailed financial statements and risk factors within the report offer insights into the company's operational efficiency, market challenges, and future outlook in the coatings industry.

Risk Assessment

Risk Level: medium — Axalta Coating Systems Ltd. shows moderate risk based on this filing. The company operates in the Paints, Varnishes, Lacquers, Enamels & Allied Products industry, which can be subject to market fluctuations and regulatory changes, as indicated by its SIC code and the nature of a 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Axalta's performance and potential challenges in the coatings market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-02-15 — Filing Date (Date of submission)

Key Players & Entities

• Axalta Coating Systems Ltd. (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-02-15 (date) — Filing date
• 2851 (industry_code) — Standard Industrial Classification for Paints, Varnishes, Lacquers, Enamels & Allied Products
• Delaware (location) — State of incorporation

FAQ

Risk Factors

• Market Conditions [medium — market]: The company's performance is subject to the cyclical nature of the automotive and industrial end markets it serves.
• Supply Chain Disruptions [medium — operational]: Disruptions in the supply chain for raw materials could impact production and profitability.
• Environmental Regulations [medium — regulatory]: Compliance with evolving environmental regulations related to coatings and emissions is critical.

Industry Context

Axalta operates within the global coatings industry, providing a wide range of liquid and powder coatings for various applications.

Regulatory Implications

The company must adhere to environmental, health, and safety regulations in all jurisdictions where it operates, impacting product development and manufacturing processes.

What Investors Should Do

1. Analyze Axalta's revenue and profitability trends for FY2023.
2. Assess the impact of identified risk factors on future performance.
3. Compare Axalta's financial metrics against industry peers.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-15: 10-K Filing Date — Official submission date of the annual report.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year 2023, providing a year-end summary of the company's financial condition and operations.

Key Financial Figures

• $1.00 — tion 12(b) of the Act: Common Shares, $1.00 par value AXTA New York Stock Exchange

Filing Documents

• axta-20231231.htm (10-K) — 2927KB
• exhibit211202310-kx122023.htm (EX-21.1) — 14KB
• exhibit231202310-kx122023.htm (EX-23.1) — 2KB
• exhibit311202310-kx122023.htm (EX-31.1) — 10KB
• exhibit312202310-kx122023.htm (EX-31.2) — 10KB
• exhibit321202310-kx122023.htm (EX-32.1) — 6KB
• exhibit322202310-kx122023.htm (EX-32.2) — 6KB
• exhibit971-doddfrankincent.htm (EX-97.1) — 33KB
• axta-20231231_g1.jpg (GRAPHIC) — 84KB
• axta-20231231_g2.jpg (GRAPHIC) — 28KB
• axta-20231231_g3.jpg (GRAPHIC) — 27KB
• axta-20231231_g4.jpg (GRAPHIC) — 23KB
• axta-20231231_g5.jpg (GRAPHIC) — 31KB
• axta-20231231_g6.jpg (GRAPHIC) — 55KB
• axta-20231231_g7.jpg (GRAPHIC) — 25KB
• axta-20231231_g8.jpg (GRAPHIC) — 31KB
• axta-20231231_g9.jpg (GRAPHIC) — 57KB
• 0001616862-24-000015.txt (&nbsp;) — 17018KB
• axta-20231231.xsd (EX-101.SCH) — 93KB
• axta-20231231_cal.xml (EX-101.CAL) — 166KB
• axta-20231231_def.xml (EX-101.DEF) — 476KB
• axta-20231231_lab.xml (EX-101.LAB) — 1321KB
• axta-20231231_pre.xml (EX-101.PRE) — 883KB
• axta-20231231_htm.xml (XML) — 2936KB

Business

Business 3 ITEM 1A.

Risk Factors

Risk Factors 14 ITEM 1B. Unresolved Staff Comments 29 ITEM 1C. Cybersecurity 29 ITEM 2.

Properties

Properties 30 ITEM 3.

Legal Proceedings

Legal Proceedings 31 ITEM 4. Mine Safety Disclosures 31 PART II ITEM 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 34 ITEM 6. Reserved 34 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 54 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 106 ITEM 9A.

Controls and Procedures

Controls and Procedures 106 ITEM 9B. Other Information 106 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 106 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 107 ITEM 11.

Executive Compensation

Executive Compensation 107 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 107 ITEM 13. Certain Relationships and Related Transactions and Director Independence 107 ITEM 14. Principal Accountant Fees and Services 107 PART IV ITEM 15. Exhibits and Financial Statement Schedules 108 ITEM 16. Form 10-K Summary 115

Signatures

Signatures 116 2 Table of Contents PART I

BUSINESS

ITEM 1. BUSINESS Axalta Coating Systems Ltd. ("Axalta," the "Company," "we," "our" and "us"), a Bermuda exempted holding company incorporated in 2012, is a leading global manufacturer, marketer and distributor of high-performance coatings systems. We have over a 150-year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technology and customer service. Over the course of our history we have remained at the forefront of our industry by continually developing innovative coatings technologies designed to enhance the performance, appearance and sustainability attributes of our customers' products, while improving their productivity and profitability. Our diverse global footprint allows us to meet the needs of our customer base through an extensive sales force and technical support organization, as well as independent, locally-based distributors. Our scale and strong local presence are critical to our success, allowing us to leverage our technology portfolio and customer relationships globally while meeting customer demands locally. We operate our business in two operating segments, Performance Coatings and Mobility Coatings, serving four end-markets globally as highlighted below. The table above reflects numbers for the year ended December 31, 2023. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net sales. See the discussion and reconciliation of segment Adjusted EBITDA to income before income taxes in Note 20 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. 3 Table of Contents Net sales for our four end-markets and four regions for the year ended December 31, 2023 are highlighted below: Note: Latin America includes Mexico. EMEA represents Europe, Middle East and Africa. SEGMENT OVERVIEW Performance Coatings Through our Performance Coatings segment, we provide high-quality sustainable liquid and