
	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Segment Adjusted EBITDA (1):
Performance Coatings	$	221	$	200	$	640	$	550
Mobility Coatings	70		61		201		151
Total	291		261		841		701
Interest expense, net	54		55		158		158
Depreciation and amortization	71		71		207		207
Debt extinguishment and refinancing-related costs (a)	—		4		3		7
Termination benefits and other employee-related costs (b)	11		12		67		14
Acquisition and divestiture-related costs (c)	4		1		8		1
Site closure costs (d)	—		2		1		4
Impairment charges (e)	—		—		—		15
Foreign exchange remeasurement losses (f)	—		7		8		19
Long-term employee benefit plan adjustments (g)	3		3		8		7
Stock-based compensation (h)	7		5		21		19






Environmental charge (i)	—		—		4		—
Other adjustments (j)	(1)		(2)		(1)		(3)
Income before income taxes	$	142	$	103	$	357	$	253


(1)			The primary measure of segment operating performance is Segment Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation, amortization and select other items impacting operating results. These other items impacting operating results are items that management has concluded are (1) non-cash items included within net income, (2) items the Company does not believe are indicative of ongoing operating performance or (3) non-recurring, unusual or infrequent items that have not occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects the Company's core operating performance, which represents EBITDA adjusted for the select items referred to above.

(a)			Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.

(b)			Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance.

(c)			Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance.

(d)			Represents costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance.

(e)			Represents impairment charges, which are not considered indicative of our ongoing operating performance. The losses recorded during the nine months ended September 30, 2023 were primarily due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023.

(f)			Represents foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures.



(g)			Represents the non-cash, non-service cost components of long-term employee benefit costs.











(h)			Represents non-cash impacts associated with stock-based compensation.

(i)			Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance.

(j)			Represents costs for certain non-operational or non-cash losses (gains), unrelated to our core business and which we do not consider indicative of our ongoing operating performance.