Axalta Coating Systems Ltd
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
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(8) STOCK-BASED COMPENSATION
During each of the three and nine months ended September 30, 2024 and 2023, we recognized $7 million, $21 million,$5 million, and$19 million in stock-based compensation expense, which was allocated between cost of goods sold and selling, general and administrative expenses in the condensed consolidated statements of operations. We recognized tax benefits on stock-based compensation of$1 million, $2 million, $0 million and $2 million for the three and nine months ended September 30, 2024 and 2023.
2024 Activity
A summary of stock option award activity as of and for the nine months ended September 30, 2024 is presented below.
| Stock Options | Awards(in millions) | WeightedAverageExercisePrice | AggregateIntrinsicValue (in millions) | WeightedAverageRemainingContractualLife (years) |
|---|---|---|---|---|
| Outstanding at January 1, 2024 | 0.5 | $28.33 | ||
| Exercised | (0.2) | $27.58 | ||
| Forfeited / Expired (1) | — | $32.50 | ||
| Outstanding at September 30, 2024 | 0.3 | $28.69 | ||
| Vested and expected to vest at September 30, 2024 | 0.3 | $28.69 | $2 | 2.63 |
| Exercisable at September 30, 2024 | 0.3 | $28.69 | $2 | 2.63 |
(1) Activity during the nine months ended September 30, 2024 rounds to zero.
Cash received by the Company upon exercise of options for the nine months ended September 30, 2024 was$6 million. No excess tax benefits or shortfall expenses were recorded related to these exercises.
At September 30, 2024, there wasno unrecognized expense relating to unvested stock options.
| Restricted Stock Units | Units(in millions) | Weighted AverageFair Value |
|---|---|---|
| Outstanding at January 1, 2024 | 1.3 | $28.71 |
| Granted | 0.5 | $32.51 |
| Vested | (0.7) | $28.20 |
| Forfeited | (0.1) | $29.67 |
| Outstanding at September 30, 2024 | 1.0 | $30.88 |
Tax expenses on the vesting of restricted stock units during the nine months ended September 30, 2024 were immaterial.
At September 30, 2024, there was$15 million of unamortized expense relating to unvested restricted stock units that is expected to be amortized over a weighted average period of 1.4 years.
| Performance Share Units | Units(in millions) | Weighted AverageFair Value |
|---|---|---|
| Outstanding at January 1, 2024 | 0.8 | $33.20 |
| Granted | 0.4 | $38.52 |
| Vested (1) | — | $29.53 |
| Forfeited | (0.3) | $31.26 |
| Outstanding at September 30, 2024 | 0.9 | $35.84 |
(1) Activity during the nine months ended September 30, 2024 rounds to zero.
Our performance share units allow for participants to vest inzero to 200% of the targeted number of shares granted. At September 30, 2024, there was$19 million of unamortized expense relating to unvested performance share units that is expected to be amortized over a weighted average period of 1.9 years. The forfeitures include portions of performance share unit grants that were determined to not have vested during the period as a result of not meeting established financial performance thresholds.
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