Axalta Coating Systems Ltd

During each of the three months ended March 31, 2025 and 2024, we recognized $5 million and$6 million in stock-based compensation expense, respectively, 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 millionfor the three months ended March 31, 2025 and 2024.

2025 Activity

(1) Activity during the three months ended March 31, 2025 rounds to zero.

Tax expenses on the vesting of restricted stock units during the three months ended March 31, 2025 were immaterial.

At March 31, 2025, there was$25 million of unamortized expense relating to unvested restricted stock units that is expected to be amortized over a weighted average period of 1.7 years.

(1) Activity during the three months ended March 31, 2025 rounds to zero.

Our performance share units allow for participants to vest inzero to 200% of the target number of shares granted. At March 31, 2025, there was$26 million of unamortized expense relating to unvested performance share units that is expected to be amortized over a weighted average period of 2.2 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.

Stock Options

The Black-Scholes option pricing model was used to estimate the fair values for options as of their grant date. There have beenno options granted since 2019. There are currently 0.2 million options outstanding, all of which are vested and exercisable, with an average exercise price of $28.06, a weighted average contractual life of 2.8 years and an aggregate intrinsic value of $1 million.

Cash received by the Company upon exercise of options during the three months ended March 31, 2025 was $1 million. There were immaterial tax expenses on these exercises.