2021 Q4 Form 10-Q Financial Statement

#000161686221000070 Filed on October 25, 2021

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2020 Q4
Revenue $1.137B $1.089B $1.075B
YoY Change 5.84% 6.01% -2.18%
Cost Of Revenue $804.7M $745.3M $677.8M
YoY Change 18.72% 17.54% -4.64%
Gross Profit $332.5M $343.3M $396.7M
YoY Change -16.18% -12.6% 2.35%
Gross Profit Margin 29.24% 31.54% 36.92%
Selling, General & Admin $192.2M $181.0M $174.4M
YoY Change 10.21% 8.71% 5.19%
% of Gross Profit 57.8% 52.72% 43.96%
Research & Development $15.60M $15.40M $14.00M
YoY Change 11.43% 14.93% -16.17%
% of Gross Profit 4.69% 4.49% 3.53%
Depreciation & Amortization $81.80M $79.30M $76.70M
YoY Change 6.65% -1.37% -10.5%
% of Gross Profit 24.6% 23.1% 19.33%
Operating Expenses $235.6M $196.4M $228.0M
YoY Change 3.33% 9.17% -12.34%
Operating Profit $96.90M $124.7M $163.2M
YoY Change -40.62% -12.0% 50.14%
Interest Expense -$33.50M $33.80M -$37.20M
YoY Change -9.95% -15.08% -11.0%
% of Operating Profit -34.57% 27.11% -22.79%
Other Income/Expense, Net $1.400M $2.400M -$800.0K
YoY Change -275.0% -204.35% -134.78%
Pretax Income $62.60M $93.30M $93.20M
YoY Change -32.83% -6.33% 34.68%
Income Tax $9.200M $24.40M $22.90M
% Of Pretax Income 14.7% 26.15% 24.57%
Net Earnings $53.20M $69.10M $69.70M
YoY Change -23.67% -16.24% 67.15%
Net Earnings / Revenue 4.68% 6.35% 6.49%
Basic Earnings Per Share $0.30 $0.30
Diluted Earnings Per Share $232.7K $0.30 $0.30
COMMON SHARES
Basic Shares Outstanding 228.4M shares 229.9M shares 235.5M shares
Diluted Shares Outstanding 230.7M shares

Balance Sheet

Concept 2021 Q4 2021 Q3 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $840.6M $627.7M $1.361B
YoY Change -38.23% -53.2% 33.75%
Cash & Equivalents $840.6M $627.7M $1.361B
Short-Term Investments
Other Short-Term Assets $91.70M $118.5M $98.10M
YoY Change -6.52% 8.12% 1.45%
Inventory $669.7M $677.9M $559.9M
Prepaid Expenses $117.2M $147.7M $132.2M
Receivables $760.4M $859.2M $738.3M
Other Receivables $177.1M $190.9M $131.5M
Total Short-Term Assets $2.576B $2.514B $2.926B
YoY Change -11.97% -11.81% 13.7%
LONG-TERM ASSETS
Property, Plant & Equipment $1.186B $1.194B $1.195B
YoY Change -0.69% 2.43% -2.33%
Goodwill $1.593B $1.620B $1.295B
YoY Change 23.0% 30.02% 7.11%
Intangibles $1.278B $1.323B $1.149B
YoY Change 11.26% 15.18% -6.14%
Long-Term Investments $9.900M $10.70M
YoY Change -7.48% -29.14%
Other Assets $584.5M $582.9M $593.1M
YoY Change -1.45% -6.97% 0.73%
Total Long-Term Assets $4.642B $4.719B $4.231B
YoY Change 9.7% 12.73% -0.31%
TOTAL ASSETS
Total Short-Term Assets $2.576B $2.514B $2.926B
Total Long-Term Assets $4.642B $4.719B $4.231B
Total Assets $7.217B $7.233B $7.157B
YoY Change 0.84% 2.79% 4.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $657.4M $622.5M $564.4M
YoY Change 16.48% 28.91% 16.68%
Accrued Expenses $597.8M $610.8M $562.3M
YoY Change 6.31% 14.47% 5.08%
Deferred Revenue
YoY Change
Short-Term Debt $55.40M $19.00M $29.90M
YoY Change 85.28% -22.13% 52.55%
Long-Term Debt Due $24.30M $24.30M $24.30M
YoY Change 0.0% 0.0% 0.0%
Total Short-Term Liabilities $1.335B $1.277B $1.181B
YoY Change 13.04% 19.85% 10.07%
LONG-TERM LIABILITIES
Long-Term Debt $3.750B $3.799B $3.839B
YoY Change -2.31% -5.28% 1.27%
Other Long-Term Liabilities $149.7M $204.2M $234.1M
YoY Change -36.05% 11.46% 61.89%
Total Long-Term Liabilities $149.7M $204.2M $234.1M
YoY Change -36.05% 11.46% 61.89%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.335B $1.277B $1.181B
Total Long-Term Liabilities $149.7M $204.2M $234.1M
Total Liabilities $5.679B $5.746B $5.677B
YoY Change 0.02% 1.66% 4.97%
SHAREHOLDERS EQUITY
Retained Earnings $827.2M $774.0M $563.3M
YoY Change 46.85% 56.81% 27.1%
Common Stock $1.767B $1.762B $1.738B
YoY Change 1.69% 1.6% 0.81%
Preferred Stock
YoY Change
Treasury Stock (at cost) $687.2M $657.3M $443.5M
YoY Change 54.95% 57.1% 6.23%
Treasury Stock Shares
Shareholders Equity $1.493B $1.441B $1.433B
YoY Change
Total Liabilities & Shareholders Equity $7.217B $7.233B $7.157B
YoY Change 0.84% 2.79% 4.98%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2020 Q4
OPERATING ACTIVITIES
Net Income $53.20M $69.10M $69.70M
YoY Change -23.67% -16.24% 67.15%
Depreciation, Depletion And Amortization $81.80M $79.30M $76.70M
YoY Change 6.65% -1.37% -10.5%
Cash From Operating Activities $268.6M $142.9M $278.4M
YoY Change -3.52% -38.77% -1.73%
INVESTING ACTIVITIES
Capital Expenditures -$22.90M -$38.40M -$25.90M
YoY Change -11.58% 178.26% -32.9%
Acquisitions
YoY Change
Other Investing Activities $26.80M -$590.2M $3.700M
YoY Change 624.32% -6806.82% 0.0%
Cash From Investing Activities $3.900M -$628.6M -$22.20M
YoY Change -117.57% 12472.0% -36.39%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -55.00M -109.6M -267.7M
YoY Change -79.45% 391.48% 1897.76%
NET CHANGE
Cash From Operating Activities 268.6M 142.9M 278.4M
Cash From Investing Activities 3.900M -628.6M -22.20M
Cash From Financing Activities -55.00M -109.6M -267.7M
Net Change In Cash 217.5M -595.3M -11.50M
YoY Change -1991.3% -388.84% -104.89%
FREE CASH FLOW
Cash From Operating Activities $268.6M $142.9M $278.4M
Capital Expenditures -$22.90M -$38.40M -$25.90M
Free Cash Flow $291.5M $181.3M $304.3M
YoY Change -4.21% -26.66% -5.47%

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The interim condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair statement of the financial position and shareholders' equity of Axalta Coating Systems Ltd., a Bermuda exempted company limited by shares, and its consolidated subsidiaries ("Axalta," the "Company," "we," "our" and "us") at September 30, 2021, the results of operations, comprehensive income (loss) and changes in shareholders' equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months then ended. All intercompany balances and transactions have been eliminated. </span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.</span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The interim unaudited condensed consolidated financial statements include the accounts of Axalta and its subsidiaries, and entities in which a controlling interest is maintained. Certain of our joint ventures are accounted for on a one-month lag basis, the effect of which is not material.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for a full year.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Summary of Significant Accounting Policies</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Recently Adopted Accounting Guidance</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In March 2020, we adopted ASU 2020-04, "Reference Rate Reform" which provides optional expedients exercisable through December 31, 2022 to ease the potential burden in accounting for the effects of reference rate reform on financial reporting.      In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which clarified the scope and application of the original guidance. As of September 30, 2021, the expedients provided in this standard do not impact the Company. We will continue to monitor for potential impacts on our financial statements.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In December 2020, we adopted ASU 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and updating provisions related to accounting for franchise (or similar) tax partially based on income and interim recognition of enactment of tax law changes. The adoption of this standard did not have a material impact on our financial statements.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Risks and Uncertainties</span></div>In March 2020, the World Health Organization characterized the coronavirus ("COVID-19") a pandemic, and the COVID-19 outbreak was declared a national emergency in the United States. The rapid spread of the pandemic and the continuously evolving responses to combat it have had a negative impact on the global economy. The Company's results of operations, financial condition and cash flows were significantly impacted during 2020 as a result of the pandemic and we continue to see impacts to our business given the continued significant presence, and actual or potential spread, of the virus globally, as well as preventative measures enacted in certain regions of the world. We are currently unable to fully determine the future impact of COVID-19 on our business, though we believe the pandemic will continue to have a negative effect on our business during 2021, and potentially longer. We are monitoring the progression of the pandemic and its ongoing and potential effect on our financial position, results of operations, and cash flows, which effects could be materially adverse in a particular quarterly reporting period as well as on an annual basis.
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DebtAndCapitalLeaseObligations
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CY2020Q4 us-gaap Debt And Capital Lease Obligations
DebtAndCapitalLeaseObligations
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CY2021Q3 us-gaap Short Term Borrowings
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19000000.0 USD
CY2020Q4 us-gaap Short Term Borrowings
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29900000 USD
CY2021Q3 us-gaap Long Term Debt And Capital Lease Obligations Current
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24300000 USD
CY2020Q4 us-gaap Long Term Debt And Capital Lease Obligations Current
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24300000 USD
CY2021Q3 us-gaap Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
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CY2020Q4 us-gaap Long Term Debt And Capital Lease Obligations
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21600000 USD
CY2021Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
54400000 USD
CY2021Q3 us-gaap Debt Instrument Carrying Amount
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3876600000 USD
CY2021Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
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27300000 USD
CY2021Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
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CY2021Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
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528500000 USD
CY2021Q3 axta Long Term Debt Maturity After Year Four
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CY2021Q3 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
5100000 USD
CY2021Q3 us-gaap Deferred Finance Costs Net
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3842500000 USD
CY2021Q3 us-gaap Business Combination Contingent Consideration Liability
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CY2020Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
0 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Purchases
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7300000 USD
CY2021Q3 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
7300000 USD
us-gaap Cash Flow Hedge Gain Loss To Be Reclassified Within Twelve Months
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us-gaap Number Of Reportable Segments
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2 Segment
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2 Segment
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1088600000 USD
CY2020Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021Q3 us-gaap Depreciation Depletion And Amortization
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79300000 USD
CY2020Q3 us-gaap Depreciation Depletion And Amortization
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80400000 USD
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
234700000 USD
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
243600000 USD
axta Intercompanysalesbetweensegments
Intercompanysalesbetweensegments
0 USD
axta Intercompanysalesbetweensegments
Intercompanysalesbetweensegments
0 USD
CY2021Q3 axta Intercompanysalesbetweensegments
Intercompanysalesbetweensegments
0 USD
CY2020Q3 axta Intercompanysalesbetweensegments
Intercompanysalesbetweensegments
0 USD
CY2021Q3 axta Adjusted Earnings Before Interestand Tax
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CY2020Q3 axta Adjusted Earnings Before Interestand Tax
AdjustedEarningsBeforeInterestandTax
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axta Adjusted Earnings Before Interestand Tax
AdjustedEarningsBeforeInterestandTax
421900000 USD
axta Adjusted Earnings Before Interestand Tax
AdjustedEarningsBeforeInterestandTax
249800000 USD
CY2021Q3 us-gaap Interest Expense
InterestExpense
33800000 USD
CY2020Q3 us-gaap Interest Expense
InterestExpense
39800000 USD
us-gaap Interest Expense
InterestExpense
100700000 USD
us-gaap Interest Expense
InterestExpense
112400000 USD
CY2021Q3 axta Refinancing Costsand Gains Losseson Extinguishmentof Debt
RefinancingCostsandGainsLossesonExtinguishmentofDebt
0 USD
axta Refinancing Costsand Gains Losseson Extinguishmentof Debt
RefinancingCostsandGainsLossesonExtinguishmentofDebt
200000 USD
CY2020Q3 axta Refinancing Costsand Gains Losseson Extinguishmentof Debt
RefinancingCostsandGainsLossesonExtinguishmentofDebt
0 USD
axta Refinancing Costsand Gains Losseson Extinguishmentof Debt
RefinancingCostsandGainsLossesonExtinguishmentofDebt
2400000 USD
CY2021Q3 axta Employee Termination And Other Related Costs
EmployeeTerminationAndOtherRelatedCosts
9600000 USD
CY2020Q3 axta Employee Termination And Other Related Costs
EmployeeTerminationAndOtherRelatedCosts
35700000 USD
axta Employee Termination And Other Related Costs
EmployeeTerminationAndOtherRelatedCosts
35100000 USD
axta Employee Termination And Other Related Costs
EmployeeTerminationAndOtherRelatedCosts
70400000 USD
CY2021Q3 axta Strategicreviewandretentioncosts
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2100000 USD
CY2020Q3 axta Strategicreviewandretentioncosts
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6900000 USD
axta Strategicreviewandretentioncosts
Strategicreviewandretentioncosts
9700000 USD
axta Strategicreviewandretentioncosts
Strategicreviewandretentioncosts
25100000 USD
CY2021Q3 axta Acquisition And Divestiture Related Costs
AcquisitionAndDivestitureRelatedCosts
9200000 USD
CY2020Q3 axta Acquisition And Divestiture Related Costs
AcquisitionAndDivestitureRelatedCosts
100000 USD
axta Acquisition And Divestiture Related Costs
AcquisitionAndDivestitureRelatedCosts
10800000 USD
axta Acquisition And Divestiture Related Costs
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300000 USD
CY2021Q3 us-gaap Asset Impairment Charges
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CY2020Q3 us-gaap Asset Impairment Charges
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300000 USD
us-gaap Asset Impairment Charges
AssetImpairmentCharges
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us-gaap Asset Impairment Charges
AssetImpairmentCharges
3500000 USD
CY2021Q3 axta Pensionspecialevent
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0 USD
CY2020Q3 axta Pensionspecialevent
Pensionspecialevent
-700000 USD
axta Pensionspecialevent
Pensionspecialevent
0 USD
axta Pensionspecialevent
Pensionspecialevent
-2500000 USD
CY2021Q3 us-gaap Restructuring Reserve Accelerated Depreciation
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600000 USD
CY2020Q3 us-gaap Restructuring Reserve Accelerated Depreciation
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400000 USD
us-gaap Restructuring Reserve Accelerated Depreciation
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1800000 USD
us-gaap Restructuring Reserve Accelerated Depreciation
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8900000 USD
CY2021Q3 axta Indemnity Gains Losses
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-100000 USD
CY2020Q3 axta Indemnity Gains Losses
IndemnityGainsLosses
300000 USD
axta Indemnity Gains Losses
IndemnityGainsLosses
-200000 USD
axta Indemnity Gains Losses
IndemnityGainsLosses
300000 USD
CY2021Q3 us-gaap Loss Contingency Loss In Period
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CY2020Q3 us-gaap Loss Contingency Loss In Period
LossContingencyLossInPeriod
0 USD
us-gaap Loss Contingency Loss In Period
LossContingencyLossInPeriod
3900000 USD
us-gaap Loss Contingency Loss In Period
LossContingencyLossInPeriod
0 USD
axta Indirect Taxes Income Expense
IndirectTaxesIncomeExpense
0 USD
CY2021Q3 axta Indirect Taxes Income Expense
IndirectTaxesIncomeExpense
0 USD
CY2020Q3 axta Indirect Taxes Income Expense
IndirectTaxesIncomeExpense
0 USD
axta Indirect Taxes Income Expense
IndirectTaxesIncomeExpense
8300000 USD
CY2021Q3 us-gaap Gain Loss On Sale Of Business
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8900000 USD
CY2020Q3 us-gaap Gain Loss On Sale Of Business
GainLossOnSaleOfBusiness
0 USD
us-gaap Gain Loss On Sale Of Business
GainLossOnSaleOfBusiness
8900000 USD
us-gaap Gain Loss On Sale Of Business
GainLossOnSaleOfBusiness
0 USD
CY2021Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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93300000 USD
CY2020Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
99600000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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277900000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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29000000.0 USD
CY2021Q3 axta Cumulative Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Income Tax Expense Benefit
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CY2021Q3 axta Cumulative Other Comprehensive Income Loss Gain Losson Derivatives Income Tax Expense Benefit
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-5400000 USD
CY2020Q3 us-gaap Other Comprehensive Income Loss Finalization Of Pension And Non Pension Postretirement Plan Valuation Net Of Tax
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1300000 USD
us-gaap Other Comprehensive Income Loss Finalization Of Pension And Non Pension Postretirement Plan Valuation Net Of Tax
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3100000 USD
CY2020Q3 axta Cumulative Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Income Tax Expense Benefit
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-27000000 USD
CY2020Q3 axta Cumulative Other Comprehensive Income Loss Gain Losson Derivatives Income Tax Expense Benefit
CumulativeOtherComprehensiveIncomeLossGainLossonDerivativesIncomeTaxExpenseBenefit
-9700000 USD

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