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Segments (Tables) | 3 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by 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.
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2024 |  | 2023
Net sales (1): |  |  |  |  |  |  |  |
Refinish |  |  |  |  |  | $ | 519 |  |  | $ | 498 |
Industrial |  |  |  |  |  | 329 |  |  | 349 |
Total Net sales Performance Coatings |  |  |  |  |  | 848 |  |  | 847 |
Light Vehicle |  |  |  |  |  | 342 |  |  | 329 |
Commercial Vehicle |  |  |  |  |  | 104 |  |  | 108 |
Total Net sales Mobility Coatings |  |  |  |  |  | 446 |  |  | 437 |
Total Net sales |  |  |  |  |  | $ | 1,294 |  |  | $ | 1,284 |
(1)The Company has no intercompany sales between segments.
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles our segment operating performance to income before income taxes for the periods presented:
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2024 |  | 2023
Segment Adjusted EBITDA (1): |  |  |  |  |  |  |  |
Performance Coatings |  |  |  |  |  | $ | 196 |  |  | $ | 169 |
Mobility Coatings |  |  |  |  |  | 63 |  |  | 44 |
Total |  |  |  |  |  | 259 |  |  | 213 |
Interest expense, net |  |  |  |  |  | 54 |  |  | 48 |
Depreciation and amortization |  |  |  |  |  | 68 |  |  | 70 |
Debt extinguishment and refinancing-related costs (a) |  |  |  |  |  | 3 |  |  | 2 |
Termination benefits and other employee-related costs (b) |  |  |  |  |  | 55 |  |  | — |
Acquisition and divestiture-related costs (c) |  |  |  |  |  | 2 |  |  | 1 |
Impairment charges (d) |  |  |  |  |  | — |  |  | 7 |
Foreign exchange remeasurement losses (e) |  |  |  |  |  | 5 |  |  | 2 |
Long-term employee benefit plan adjustments (f) |  |  |  |  |  | 3 |  |  | 2 |
Stock-based compensation (g) |  |  |  |  |  | 6 |  |  | 6 |
Environmental charge (h) |  |  |  |  |  | 4 |  |  | — |
Other adjustments (i) |  |  |  |  |  | — |  |  | (1) |
Income before income taxes |  |  |  |  |  | $ | 59 |  |  | $ | 76 |
(1) | The primary measure of segment operating performance is 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 (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) 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. 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 Adjusted 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 are not considered indicative of our ongoing operating performance.
(b) | Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance.
(c) | Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance.
(d) | Represents impairment charges, which are not considered indicative of our ongoing operating performance. The amount recorded during the three months ended March 31, 2023 relates to a loss recorded due to the then anticipated exit of a non-core business category in the Mobility Coatings segment.
(e) | 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.
(f) | Represents the non-cash, non-service cost components of long-term employee benefit costs.
(g) | Represents non-cash impacts associated with stock-based compensation.
(h) | Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance.
(i) | Represents costs for certain non-operational or non-cash gains, unrelated to our core business and which we do not consider indicative of our ongoing operating performance.

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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