Axalta Coating Systems Ltd
For the period ended Dec 31, 2023. Filed Feb 15, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 15, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
) GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
(3)GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
During the year ended December 31, 2023, we acquired 100% of the share capital of Pearl Investment AG and its key operating subsidiary André Koch AG, a long-time refinish products distribution partner in Switzerland, which resulted in a net cash outflow on the closing date of $106.1 million, and is subject to contingent consideration arrangements of $5.6 million, which are discussed further in Note 19. The fair value associated with definite-lived intangible assets was $79.0 million, comprising $67.7 million of customer relationships and $11.3 million of trademarks. We have not finalized the related purchase accounting related to the acquisition and the amounts recorded represent preliminary values. We expect to finalize our purchase accounting during the respective measurement period, which will be no later than one year following the closing date.
Goodwill
The following table shows changes in the carrying amount of goodwill from December 31, 2021 to December 31, 2023 by reportable segment:
| PerformanceCoatings | MobilityCoatings | Total | |
|---|---|---|---|
| December 31, 2021 | $1,513.4 | $79.3 | $1,592.7 |
| Goodwill from acquisitions | 1.4 | — | 1.4 |
| Purchase accounting and other adjustments | 2.5 | — | 2.5 |
| Foreign currency translation | (94.8) | (3.8) | (98.6) |
| December 31, 2022 | $1,422.5 | $75.5 | $1,498.0 |
| Goodwill from acquisitions | 38.2 | — | 38.2 |
| Purchase accounting and other adjustments | (0.5) | — | (0.5) |
| Divestiture | — | (0.1) | (0.1) |
| Foreign currency translation | 53.2 | 2.1 | 55.3 |
| December 31, 2023 | $1,513.4 | $77.5 | $1,590.9 |
Identifiable Intangible Assets
The following tables summarize the gross carrying amounts and accumulated amortization of identifiable intangible assets by major class:
| December 31, 2023 | Gross CarryingAmount | AccumulatedAmortization | Net BookValue | Weighted averageamortization periods (years) |
|---|---|---|---|---|
| Technology | $161.9 | $(87.5) | $74.4 | 11.2 |
| Trademarks—indefinite-lived | 263.7 | — | 263.7 | Indefinite |
| Trademarks—definite-lived | 142.1 | (60.5) | 81.6 | 14.5 |
| Customer relationships | 1,194.0 | (484.0) | 710.0 | 19.0 |
| Total | $1,761.7 | $(632.0) | $1,129.7 |
During the year-ended December 31, 2023, we retired fully amortized assets totaling $396.9 million consisting of technology, trademarks, and other intangible assets.
| December 31, 2022 | Gross CarryingAmount | AccumulatedAmortization | Net BookValue | Weighted averageamortization periods (years) |
|---|---|---|---|---|
| Technology | $555.2 | $(462.3) | $92.9 | 10.3 |
| Trademarks—indefinite-lived | 255.6 | — | 255.6 | Indefinite |
| Trademarks—definite-lived | 126.7 | (50.8) | 75.9 | 14.5 |
| Customer relationships | 1,106.7 | (418.8) | 687.9 | 19.2 |
| Other | 0.6 | (0.6) | — | 5.0 |
| Total | $2,044.8 | $(932.5) | $1,112.3 |
The estimated amortization expense related to the fair value of acquired intangible assets for each of the succeeding five years is:
| 2024 | $89.3 |
| 2025 | $88.6 |
| 2026 | $88.3 |
| 2027 | $87.4 |
| 2028 | $73.8 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.