2024 Q1 Form 10-K Financial Statement

#000192196324000007 Filed on February 14, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $426.6M $399.7M $1.628B
YoY Change 1.91% -74.41% 4.23%
Cost Of Revenue $314.8M $294.1M $1.195B
YoY Change 1.94% -75.56% -0.65%
Gross Profit $111.8M $105.6M $432.7M
YoY Change 1.82% -70.58% 20.56%
Gross Profit Margin 26.21% 26.42% 26.58%
Selling, General & Admin $43.30M $48.30M $174.7M
YoY Change 10.74% -65.43% 25.05%
% of Gross Profit 38.73% 45.74% 40.37%
Research & Development $10.10M $9.300M $42.50M
YoY Change 3.06% -75.91% 10.1%
% of Gross Profit 9.03% 8.81% 9.82%
Depreciation & Amortization $5.400M $5.400M $21.50M
YoY Change 0.0% -66.67% -0.46%
% of Gross Profit 4.83% 5.11% 4.97%
Operating Expenses $53.40M $58.20M $217.2M
YoY Change 8.98% -68.25% 18.49%
Operating Profit $68.60M $47.40M $248.4M
YoY Change 12.83% -73.01% 41.46%
Interest Expense $10.50M -$1.800M $25.80M
YoY Change 25.0% -106.59% -5.49%
% of Operating Profit 15.31% -3.8% 10.39%
Other Income/Expense, Net $200.0K $1.600M $3.800M
YoY Change -300.0% -81.82% -56.82%
Pretax Income $58.30M $47.20M $226.4M
YoY Change -15.63% -77.7% 6.94%
Income Tax $12.80M $12.40M $55.10M
% Of Pretax Income 21.96% 26.27% 24.34%
Net Earnings $45.50M $34.80M $171.3M
YoY Change -13.66% -79.54% 0.71%
Net Earnings / Revenue 10.67% 8.71% 10.52%
Basic Earnings Per Share $0.55 $2.06
Diluted Earnings Per Share $0.54 $0.42 $2.05
COMMON SHARES
Basic Shares Outstanding 83.31M shares 83.30M shares 83.30M shares
Diluted Shares Outstanding 83.60M shares 83.40M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $149.2M $168.0M $168.0M
YoY Change
Cash & Equivalents $149.2M $168.0M $168.0M
Short-Term Investments
Other Short-Term Assets $31.10M $28.20M $28.20M
YoY Change 51.71% 46.11% 46.11%
Inventory $256.9M $250.0M $250.0M
Prepaid Expenses
Receivables $262.2M $184.5M $184.5M
Other Receivables $0.00 $62.30M $62.30M
Total Short-Term Assets $699.4M $693.0M $693.0M
YoY Change 34.4% 35.27% 35.27%
LONG-TERM ASSETS
Property, Plant & Equipment $209.2M $199.4M $199.4M
YoY Change 10.34% 34.37% 10.29%
Goodwill $84.70M $84.70M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $83.40M $84.80M $84.80M
YoY Change -0.83% 10.13% 10.13%
Other Assets $55.50M $51.50M $23.60M
YoY Change 193.65% -9.65% -4.07%
Total Long-Term Assets $404.8M $395.6M $395.6M
YoY Change 7.29% 7.76% 7.76%
TOTAL ASSETS
Total Short-Term Assets $699.4M $693.0M $693.0M
Total Long-Term Assets $404.8M $395.6M $395.6M
Total Assets $1.104B $1.089B $1.089B
YoY Change 23.0% 23.79% 23.79%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $236.5M $174.2M $174.2M
YoY Change 35.14% 19.4% 19.4%
Accrued Expenses $87.30M $120.3M $120.3M
YoY Change 2.22% 16.68% 24.41%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $11.20M $7.500M $7.800M
YoY Change 3633.33% 1850.0%
Total Short-Term Liabilities $349.4M $375.0M $375.0M
YoY Change -5.36% 7.42% 7.42%
LONG-TERM LIABILITIES
Long-Term Debt $588.8M $592.5M $593.0M
YoY Change 84614.29%
Other Long-Term Liabilities $34.50M $31.80M $38.50M
YoY Change -58.78% -60.64% -51.94%
Total Long-Term Liabilities $623.3M $624.3M $631.5M
YoY Change 644.68% 672.65% 681.56%
TOTAL LIABILITIES
Total Short-Term Liabilities $349.4M $375.0M $375.0M
Total Long-Term Liabilities $623.3M $624.3M $631.5M
Total Liabilities $982.4M $1.008B $1.008B
YoY Change 116.91% 134.45% 134.45%
SHAREHOLDERS EQUITY
Retained Earnings $132.7M $87.20M
YoY Change
Common Stock $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $121.8M $80.70M $80.70M
YoY Change
Total Liabilities & Shareholders Equity $1.104B $1.089B $1.089B
YoY Change 23.0% 23.79% 23.79%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $45.50M $34.80M $171.3M
YoY Change -13.66% -79.54% 0.71%
Depreciation, Depletion And Amortization $5.400M $5.400M $21.50M
YoY Change 0.0% -66.67% -0.46%
Cash From Operating Activities -$8.200M $41.70M $189.0M
YoY Change -112.15% -76.06% 6.78%
INVESTING ACTIVITIES
Capital Expenditures $10.60M $16.20M $45.80M
YoY Change 15.22% -43.16% 37.13%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$10.60M -$16.20M -$45.80M
YoY Change 15.22% -43.16% 37.13%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $50.00M
YoY Change
Cash From Financing Activities $0.00 3.700M $24.80M
YoY Change -100.0% -102.54% -117.27%
NET CHANGE
Cash From Operating Activities -$8.200M 41.70M $189.0M
Cash From Investing Activities -$10.60M -16.20M -$45.80M
Cash From Financing Activities $0.00 3.700M $24.80M
Net Change In Cash -$18.80M 29.20M $168.0M
YoY Change
FREE CASH FLOW
Cash From Operating Activities -$8.200M $41.70M $189.0M
Capital Expenditures $10.60M $16.20M $45.80M
Free Cash Flow -$18.80M $25.50M $143.2M
YoY Change -132.25% -82.5% -0.28%

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BASIS OF PRESENTATION<div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As Atmus became a publicly traded company upon the IPO, its financial statements are now presented on a consolidated basis. In preparation for the IPO, the Company’s historical consolidated financial statements were prepared on a standalone basis, which reflected a combination of entities under common control that had been “carved out” of and derived from the historical consolidated financial statements and accounting records of Cummins. </span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The financial statements for all periods presented, including the historical results of the Company prior to May 26, 2023, are now referred to as “Consolidated Financial Statements”, and have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP). All intercompany balances and transactions are eliminated in consolidation.</span></div><div style="margin-top:10pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Periods Prior to the IPO</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#231f20;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Prior to the IPO, Atmus, previously the Filtration Business of Cummins, functioned as part of the larger group of businesses controlled by Cummins and accordingly, utilized centralized functions of Cummins, such as facilities and information technology, to support its operations. A portion of the shared service costs were historically allocated to the Filtration Business. Cummins also performed certain corporate functions for the Filtration Business and the related corporate expenses were allocated from Cummins. These allocated costs primarily related to certain governance and corporate functions, including finance, human resources, investor relations, legal, tax, treasury and certain other costs. Where it was possible to specifically attribute such expenses to activities of the Filtration Business, these amounts were charged or credited directly to the Filtration Business without allocation or apportionment. Allocation of other such expenses was based on a reasonable reflection of the utilization of the service provided or benefit received by the Filtration Business for the periods presented prior to the Separation, on a consistent basis, such as a relative percentage of headcount and third-party sales. The aggregate costs allocated for these functions to the Filtration Business are included within the Consolidated Statements of Net Income for the periods presented prior to the Separation.</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Management believes these cost allocations were a reasonable reflection of the utilization of services provided to, or the benefit derived by, the Filtration Business during the period prior to the IPO, though the allocations may not be indicative of the actual costs that would have been incurred had the Filtration Business operated as a standalone public company. Actual costs that may have been incurred if the Filtration Business had been a standalone company would depend on a number of factors, including the chosen organizational structure, whether functions were outsourced or performed by the Filtration Business employees, and strategic decisions made in areas such as manufacturing, selling and marketing, research and development, information technology and infrastructure.</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#231f20;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Historically, Atmus’ cash was transferred to Cummins on a daily basis. This arrangement was not reflective of the manner in which Atmus would have been able to finance its operations had it been a standalone business separate from Cummins during each of the periods presented.</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#231f20;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Cummins’ debt and related interest expense were not allocated to Atmus for any of the periods presented since Atmus was not the legal obligor of the debt and Cummins’ borrowings were not directly attributable to Atmus.</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#231f20;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As the separate legal entities that made up the Filtration Business were not historically held by a single legal entity, Cummins’ net investment in this business (“Net Parent Investment”) was presented in lieu of a controlling interest’s equity in the Consolidated Financial Statements.</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For the Filtration Business, transactions with Cummins affiliates were included in the Consolidated Statements of Net Income and related balances were reflected as related party receivables and related party payables. Other balances between the Filtration Business and Cummins were considered to be effectively settled in the Consolidated Financial Statements at the time the transactions were recorded.</span></div><div style="margin-top:10pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">As of the IPO Date</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In connection with the Separation, we entered into various agreements with Cummins, including a separation agreement. In the separation agreement, there were certain assets and liabilities identified in the schedules, including leases and unrecognized tax liabilities, which were retained by Cummins and were reflected as Net Parent Investment in the Company’s Consolidated Financial Statements, and those that were transferred to the Company, including additional pension assets, other compensation obligations and certain other assets and liabilities, which were transferred to the Company through Net Parent Investment in the Company’s Consolidated Financial Statements. These various agreements comprehensively provide a framework for our relationship with Cummins and govern various interim and ongoing relationships between us and Cummins post IPO.</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As part of the Separation, Net Parent Investment was reclassified as Additional Paid-in Capital.</span></div><div style="margin-top:10pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Periods Post IPO</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Following the IPO, certain services continue to be provided by Cummins under a transition services agreement. The Company incurred certain costs in its establishment as a standalone public company and </span></div><div style="margin-top:10pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">expects to incur ongoing additional costs associated with operating as an independent, publicly traded company.</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As a standalone entity, the Company will file tax returns on its own behalf, and tax balances and effective income tax rates may differ from the amounts reported in the historical periods. Atmus currently files a consolidated Federal income tax return and returns in certain other jurisdictions with Cummins. Following a full separation from Cummins, Atmus will file tax returns in those jurisdictions on its own behalf.</span></div><div style="margin-top:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Post IPO, Retained earnings began to accumulate and the balance reflected on the Consolidated Balance Sheets reflects earnings for the period May 26, 2023 through December 31, 2023.</span></div>
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<div style="margin-top:10pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates in the Preparation of the Consolidated Financial Statements</span></div><div style="margin-top:10pt;text-indent:20pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Preparation of financial statements requires management to make estimates and assumptions that affect reported amounts presented and disclosed in our Consolidated Financial Statements. Significant estimates and assumptions in these Consolidated Financial Statements require the exercise of judgement and are used for, but not limited to, estimates of future cash flows and other assumptions associated with goodwill and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, restructuring costs, income taxes, deferred tax valuation allowances, contingencies and allowances for doubtful accounts. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.</span></div>
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CY2023 us-gaap Standard Product Warranty Accrual Foreign Currency Translation Gain Loss
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100000 usd
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CY2023Q4 us-gaap Standard Product Warranty Accrual
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CY2022Q4 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
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CY2021Q4 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
23900000 usd
CY2023Q4 us-gaap Product Warranty Accrual Classified Current
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5400000 usd
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CY2022Q4 us-gaap Product Warranty Accrual
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CY2023Q4 us-gaap Long Term Debt Fair Value
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CY2023 atmu Multiemployer Plan Pension Significant Employer Non Service Benefit
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CY2021 atmu Multiemployer Plan Pension Significant Employer Non Service Benefit
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CY2023 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
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CY2023 us-gaap Defined Benefit Plan Net Periodic Benefit Cost
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CY2023 us-gaap Defined Benefit Plan Service Cost
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CY2022Q4 us-gaap Defined Benefit Plan Benefit Obligation
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CY2023 atmu Operating Expenses Allocated Corporate Costs
OperatingExpensesAllocatedCorporateCosts
13700000 usd
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OperatingExpensesAllocatedCorporateCosts
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CY2023 us-gaap Allocated Share Based Compensation Expense
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AllocatedShareBasedCompensationExpense
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CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
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28.34
CY2023 atmu Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Granted In Period Fair Value
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21600000 usd
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period
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0 shares
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Grant Date Fair Value
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0
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ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod
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CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue
0
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CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue
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CY2023 us-gaap Net Income Loss
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83300000 shares
CY2023 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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100000 shares
CY2022 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2021 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
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CY2023 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
83400000 shares
CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
83300000 shares
CY2021 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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83300000 shares
CY2023 us-gaap Earnings Per Share Basic
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CY2021 us-gaap Earnings Per Share Basic
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CY2023 us-gaap Earnings Per Share Diluted
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CY2022 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
2.05
CY2021 us-gaap Earnings Per Share Diluted
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CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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0 shares
CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
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CY2023Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
24800000 usd
CY2022Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
32400000 usd
CY2023Q4 us-gaap Deferred Income Tax Assets Net
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14200000 usd
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14300000 usd
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3100000 usd
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3100000 usd
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9400000 usd
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7200000 usd
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57000000.0 usd
CY2023Q4 us-gaap Accrued Marketing Costs Current
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42600000 usd
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47300000 usd
CY2023Q4 us-gaap Accrual For Taxes Other Than Income Taxes Current And Noncurrent
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12700000 usd
CY2022Q4 us-gaap Accrual For Taxes Other Than Income Taxes Current And Noncurrent
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7500000 usd
CY2023Q4 us-gaap Accrued Income Taxes Current
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10300000 usd
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6000000.0 usd
CY2023Q4 us-gaap Operating Lease Liability Current
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7100000 usd
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9000000.0 usd
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300000 usd
CY2022Q4 us-gaap Finance Lease Liability Current
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400000 usd
CY2023Q4 atmu Other Accrued Liabilities Miscellaneous Current
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10700000 usd
CY2022Q4 atmu Other Accrued Liabilities Miscellaneous Current
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8800000 usd
CY2023Q4 us-gaap Other Accrued Liabilities Current
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83700000 usd
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79000000.0 usd
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18500000 usd
CY2022Q4 us-gaap Operating Lease Liability Noncurrent
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23200000 usd
CY2023Q4 us-gaap Deferred Income Tax Liabilities Net
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1400000 usd
CY2022Q4 us-gaap Deferred Income Tax Liabilities Net
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7300000 usd
CY2023Q4 us-gaap Accrued Income Taxes Noncurrent
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200000 usd
CY2022Q4 us-gaap Accrued Income Taxes Noncurrent
AccruedIncomeTaxesNoncurrent
29800000 usd
CY2023Q4 atmu Other Liabilities Miscellaneous Noncurrent
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11700000 usd
CY2022Q4 atmu Other Liabilities Miscellaneous Noncurrent
OtherLiabilitiesMiscellaneousNoncurrent
10900000 usd
CY2023Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
31800000 usd
CY2022Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
71200000 usd
CY2023Q4 ecd Non Rule10b51 Arr Trmntd Flag
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false
CY2023Q4 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2023Q4 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2023Q4 ecd Rule10b51 Arr Trmntd Flag
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false

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0001921963-24-000007-index.html Edgar Link pending
0001921963-24-000007.txt Edgar Link pending
0001921963-24-000007-xbrl.zip Edgar Link pending
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atmu-20231231.xsd Edgar Link pending
atmu-20231231_g1.jpg Edgar Link pending
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