Reportable Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2022


($ in millions)	2022	2021	2020
Net sales to external customers
Performance Coatings	$10,694	$10,333	$8,495
Industrial Coatings	6,958	6,469	5,339
Total Net sales	$17,652	$16,802	$13,834
Segment income
Performance Coatings	$1,399	$1,491	$1,359
Industrial Coatings	643	680	750
Total Segment income	$2,042	$2,171	$2,109
Corporate / Non-Segment Items
Corporate unallocated	(218)	(194)	(233)
Interest expense, net of interest income	(113)	(95)	(115)
Impairment and other related charges, net(1)	(245)	(21)	(93)
Business restructuring-related costs, net(2)	(75)	(27)	(224)
Transaction-related costs, net(3)	(10)	(86)	(9)
Pension settlement charge	—	(50)	—
Environmental remediation charges, net	—	(35)	(26)
Expense incurred due to natural disasters(4)	—	(17)	(17)
Change in allowance for doubtful accounts related to COVID-19	—	14	(30)
Income from legal settlements	—	22	—
Asbestos-related claims reserve adjustment(5)	—	133	—
Total Income before income taxes	$1,381	$1,815	$1,362


($ in millions)	2022	2021	2020
Depreciation and amortization
Performance Coatings	$296	$308	$251
Industrial Coatings	207	212	200
Corporate / Non-Segment Items	51	41	58
Total	$554	$561	$509
Share of net earnings of equity affiliates
Performance Coatings	$7	$5	$3

Corporate / Non-Segment Items	18	10	5
Total	$25	$15	$8
Segment assets(6)
Performance Coatings	$13,088	$13,395	$11,551
Industrial Coatings	5,802	5,807	5,040
Corporate / Non-Segment Items	1,854	2,149	2,965
Total	$20,744	$21,351	$19,556
Investment in equity affiliates
Performance Coatings	$42	$33	$31
Industrial Coatings	15	15	15
Corporate / Non-Segment Items	77	78	74
Total	$134	$126	$120
Expenditures for property (including business acquisitions)
Performance Coatings	$254	$1,698	$1,293
Industrial Coatings	313	784	166
Corporate / Non-Segment Items	65	26	14
Total	$632	$2,508	$1,473

Geographic Information


($ in millions)	2022	2021	2020
Geographic Information
Segment income
United States and Canada	$819	$865	$855
EMEA	505	612	572
Asia Pacific	332	354	382
Latin America	386	340	300
Total	$2,042	$2,171	$2,109
Property, plant and equipment — net
United States and Canada	$1,394	$1,377	$1,351
EMEA	943	1,069	857
Asia Pacific	685	702	623
Latin America	306	294	296
Total	$3,328	$3,442	$3,127

(1)In the first quarter 2022, the Company recorded impairment and other related charges due to the wind down of the company’s operations in Russia. Subsequently, the Company released a portion of the previously established reserves for Receivables and Inventories due to the collection of certain trade receivables and the realization of certain inventories. Also in 2022, impairment and other related charges were recorded for the write-down of certain assets and liabilities related to the planned sale of a non-core business and for certain asset write downs. In 2021 and 2020, impairment charges were recorded for the write-down of certain assets related to the previously planned sale of certain smaller entities in non-strategic regions. Also in 2020, an impairment charge was recorded to reduce the carrying value of an indefinite-lived trademark.

(2)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 and a $34 million gain on the sale of certain assets in 2021 in connection with the Company’s manufacturing footprint consolidation plans and associated restructuring programs. This gain is included in Other (income)/charges, net in the consolidated statement of income.

(3)Transaction-related costs, net include advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions. These costs are included in Selling, general and administrative expense in the statement of income. Acquisition-related costs, net also include 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 consolidated statement of income.

(4)In 2020, two hurricanes damaged a southern U.S. factory supporting the Company's specialty coatings and materials business. In early 2021, a winter storm further damaged that factory as well as other company factories in the southern U.S. Incremental expenses incurred due to these storms included costs related to maintenance and repairs of damaged property, freight and utility premiums and other incremental expenses directly related to the impacted areas.

(5)In 2021, the reserve for asbestos-related claims was reduced to reflect the Company’s current estimate of potential liability for these claims.

(6)Segment assets are the total assets used in the operation of each segment. Corporate assets principally include amounts recorded in Cash and cash equivalents, Deferred income taxes, and Property, plant and equipment, net on the consolidated balance sheet.