REPORTABLE SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

REPORTABLE SEGMENT INFORMATION

REPORTABLE SEGMENT INFORMATION

The Company reports its 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 Reporting Topic of the ASC. The Company has determined that it has three reportable operating segments: The Americas Group, Consumer Brands Group and Performance Coatings Group (individually, a Reportable Segment and collectively, the Reportable Segments).

	Three Months Ended June 30, 2022
	The Americas Group		Consumer Brands Group		Performance Coatings Group		Administrative		Consolidated Totals
Net external sales	$	3,343.1	$	737.9	$	1,790.3	$	1.0	$	5,872.3
Intersegment transfers	—		1,498.6		53.3		(1,551.9)		—
Total net sales and intersegment transfers	$	3,343.1	$	2,236.5	$	1,843.6	$	(1,550.9)	$	5,872.3
Segment profit	$	700.4	$	63.5	$	196.8			$	960.7
Interest expense							$	(92.9)	(92.9)
Administrative expenses and other							(127.9)		(127.9)
Income before income taxes	$	700.4	$	63.5	$	196.8	$	(220.8)	$	739.9
	Three Months Ended June 30, 2021
	The Americas Group		Consumer Brands Group		Performance Coatings Group		Administrative		Consolidated Totals
Net external sales	$	3,093.4	$	731.5	$	1,554.5	$	0.4	$	5,379.8
Intersegment transfers	—		1,099.6		37.9		(1,137.5)		—
Total net sales and intersegment transfers	$	3,093.4	$	1,831.1	$	1,592.4	$	(1,137.1)	$	5,379.8
Segment profit	$	727.3	$	122.8	$	144.8			$	994.9
Interest expense							$	(83.5)	(83.5)
Administrative expenses and other							(92.2)		(92.2)
Income before income taxes	$	727.3	$	122.8	$	144.8	$	(175.7)	$	819.2

	Six Months Ended June 30, 2022
	The Americas Group		Consumer Brands Group		Performance Coatings Group		Administrative		Consolidated Totals
Net external sales	$	5,987.2	$	1,437.3	$	3,444.4	$	2.1	$	10,871.0
Intersegment transfers	—		2,705.1		105.6		(2,810.7)		—
Total net sales and intersegment transfers	$	5,987.2	$	4,142.4	$	3,550.0	$	(2,808.6)	$	10,871.0
Segment profit	$	1,145.8	$	128.4	$	341.3			$	1,615.5
Interest expense							$	(181.3)	(181.3)
Administrative expenses and other							(233.2)		(233.2)
Income before income taxes	$	1,145.8	$	128.4	$	341.3	$	(414.5)	$	1,201.0
	Six Months Ended June 30, 2021
	The Americas Group		Consumer Brands Group		Performance Coatings Group		Administrative		Consolidated Totals
Net external sales	$	5,596.5	$	1,509.6	$	2,928.8	$	0.9	$	10,035.8
Intersegment transfers	—		2,083.6		69.9		(2,153.5)		—
Total net sales and intersegment transfers	$	5,596.5	$	3,593.2	$	2,998.7	$	(2,152.6)	$	10,035.8
Segment profit	$	1,207.3	$	266.5	$	288.6			$	1,762.4
Interest expense							$	(166.7)	(166.7)
Administrative expenses and other							(267.5)		(267.5)
Income before income taxes	$	1,207.3	$	266.5	$	288.6	$	(434.2)	$	1,328.2

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 and the operations of 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. 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 that were not directly associated with the Reportable Segments. In addition, the Administrative segment includes the $111.9 million pre-tax loss on the Wattyl divestiture recognized during the six months ended June 30, 2021. See Notes 3 and 15 for additional information on the Wattyl divestiture. 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. The Administrative segment did not include any significant foreign operations. 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 of all consolidated foreign subsidiaries were $1.121 billion and $1.102 billion for the three months ended June 30, 2022 and 2021, respectively. Net external sales of all consolidated foreign subsidiaries were $2.198 billion and $2.139 billion for the six months ended June 30, 2022 and 2021, respectively. Long-lived assets of these subsidiaries totaled $2.833 billion and $2.844 billion at June 30, 2022 and 2021, respectively. Domestic operations accounted for the remaining net external sales 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% of consolidated sales in 2022 and 2021.

For further details on the Company's Reportable Segments, see Note 21 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.