Reportable Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Reportable Business Segment Net Sales and Segment Income

Reportable business segment net sales and segment income for the three and six months ended June 30, 2022 and 2021 were as follows:


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2022	2021	2022	2021
Net sales:
Performance Coatings	$2,929	$2,749	$5,499	$5,068
Industrial Coatings	1,762	1,610	3,500	3,172
Total	$4,691	$4,359	$8,999	$8,240
Segment income:
Performance Coatings	$446	$454	$765	$840
Industrial Coatings	156	190	296	435
Total	$602	$644	$1,061	$1,275
Corporate	(55)	(52)	(107)	(104)
Interest expense, net of interest income	(27)	(25)	(48)	(49)
Impairment and other related income/(charges), net (a)	60	—	(230)	—
Business restructuring-related costs, net (b)	(8)	19	(22)	15
Transaction-related costs (c)	(6)	(14)	(10)	(38)
Environmental remediation charges	—	(10)	—	(26)
Expenses incurred due to natural disasters (d)	—	(5)	—	(17)
Decrease in allowance for doubtful accounts related to COVID-19	—	14	—	14
Income from legal settlements	—	22	—	22

Income before income taxes	$566	$593	$644	$1,092

(a)In the first quarter 2022, the Company recorded impairment and other related charges associated with the wind down of the Company’s operations in Russia. In the second quarter 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories.

(b)Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs.

(c)Transaction-related costs include advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect disposals not classified as discontinued operations.

These costs are included in Selling, general and administrative expense in the condensed consolidated statement of income. Transaction-related costs also include losses on the sale of certain assets, which are included in Other income, net in the condensed consolidated statement of income, and the impact for the step up to fair value of inventory acquired in certain acquisitions, which are included in Cost of sales, exclusive of depreciation and amortization in the condensed consolidated statement of income.

(d)In early 2021, a winter storm damaged a southern U.S. factory supporting the Company's specialty coatings and materials business as well as other Company factories in the southern U.S. Incremental expenses incurred due to this storm included costs related to maintenance and repairs of damaged property, freight and utility premiums and other incremental expenses directly related to the impacted areas.