Reportable Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

REPORTABLE SEGMENT INFORMATION

REPORTABLE SEGMENT INFORMATION

The Company reports segment information in the same way that management internally organizes its business for assessing performance and making decisions regarding allocation of resources in accordance with the Segment Disclosures Topic of the ASC. The Company has determined that it has four reportable operating segments: Paint Stores Group, Consumer Group, Global Finishes Group and Latin America Coatings Group (individually, a "Reportable Segment" and collectively, the “Reportable Segments”).

(Thousands of dollars)	Three Months Ended September 30, 2016
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings Group		Administrative			Consolidated Totals
Net external sales	$	2,227,891	$	412,901	$	480,743	$	156,637	$	1,290		$	3,279,462
Intersegment transfers			760,594		2,954		10,348		(773,896		)
Total net sales and intersegment transfers	$	2,227,891	$	1,173,495	$	483,697	$	166,985	$	(772,606	)	$	3,279,462
Segment profit	$	518,309	$	92,047	$	63,169	$	974				$	674,499
Interest expense									$	(44,100	)	(44,100		)
Administrative expenses and other									(94,779		)	(94,779		)
Income before income taxes	$	518,309	$	92,047	$	63,169	$	974	$	(138,879	)	$	535,620

	Three Months Ended September 30, 2015
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings Group		Administrative			Consolidated Totals
Net external sales	$	2,087,263	$	421,633	$	486,133	$	156,019	$	1,237		$	3,152,285
Intersegment transfers			760,376		682		10,041		(771,099		)
Total net sales and intersegment transfers	$	2,087,263	$	1,182,009	$	486,815	$	166,060	$	(769,862	)	$	3,152,285
Segment profit	$	507,411	$	88,273	$	55,133	$	2,145				$	652,962
Interest expense									$	(16,995	)	(16,995		)
Administrative expenses and other									(85,245		)	(85,245		)
Income before income taxes	$	507,411	$	88,273	$	55,133	$	2,145	$	(102,240	)	$	550,722

	Nine Months Ended September 30, 2016
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings  Group			Administrative			Consolidated Totals
Net external sales	$	5,951,457	$	1,268,502	$	1,434,065	$	415,131		$	3,856		$	9,073,011
Intersegment transfers			2,138,180		10,935		29,001			(2,178,116		)
Total net sales and intersegment transfers	$	5,951,457	$	3,406,682	$	1,445,000	$	444,132		$	(2,174,260	)	$	9,073,011
Segment profit	$	1,280,833	$	264,306	$	176,990	$	(9,597	)				$	1,712,532
Interest expense										$	(110,710	)	(110,710		)
Administrative expenses and other										(310,623		)	(310,623		)
Income before income taxes	$	1,280,833	$	264,306	$	176,990	$	(9,597	)	$	(421,333	)	$	1,291,199

	Nine Months Ended September 30, 2015
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings  Group		Administrative			Consolidated Totals
Net external sales	$	5,533,753	$	1,263,365	$	1,461,456	$	472,318	$	3,816		$	8,734,708
Intersegment transfers			2,136,577		3,643		30,594		(2,170,814		)
Total net sales and intersegment transfers	$	5,533,753	$	3,399,942	$	1,465,099	$	502,912	$	(2,166,998	)	$	8,734,708
Segment profit	$	1,117,368	$	257,926	$	151,301	$	15,676				$	1,542,271
Interest expense									$	(42,231	)	(42,231		)
Administrative expenses and other									(248,295		)	(248,295		)
Income before income taxes	$	1,117,368	$	257,926	$	151,301	$	15,676	$	(290,526	)	$	1,251,745

In the reportable segment financial information, Segment profit was total net sales and intersegment transfers less operating costs and expenses. Domestic intersegment transfers were accounted for at the approximate fully absorbed manufactured cost, based on normal capacity volumes, plus customary distribution costs. International intersegment transfers were accounted for at values comparable to normal unaffiliated customer sales. The Administrative segment includes the administrative expenses of the Company’s corporate headquarters site. Also included in the Administrative segment was interest expense, interest and investment income, certain expenses related to closed facilities and environmental-related matters, and other expenses which were not directly associated with the Reportable Segments. The Administrative segment did not include any significant foreign operations. Also included in the Administrative segment was a real estate management unit that is responsible for the ownership, management and leasing of non-retail properties held primarily for use by the Company, including the Company’s headquarters site, and disposal of idle facilities. Sales of this segment represented external leasing revenue of excess headquarters space or leasing of facilities no longer used by the Company in its primary businesses. Gains and losses from the sale of property were not a significant operating factor in determining the performance of the Administrative segment.

Net external sales and segment profit of all consolidated foreign subsidiaries were $439.6 million and $19.6 million, respectively, for the third quarter of 2016, and $441.2 million and $14.3 million, respectively, for the third quarter of 2015. Net external sales and segment profit of these subsidiaries were $1.295 billion and $46.8 million, respectively, for the first nine months of 2016and$1.374 billionand$55.0 million, respectively, for the firstnine months of 2015. Long-lived assets of these subsidiaries totaled $504.4 million and $491.6 million at September 30, 2016 and September 30, 2015, respectively. Domestic operations accounted for the remaining net external sales, segment profits and long-lived assets. No single geographic area outside the United States was significant relative to consolidated net external sales, income before taxes, or consolidated long-lived assets.

Export sales and sales to any individual customer were each less than 10 percent of consolidated sales to unaffiliated customers during all periods presented.