Reportable Segment Information

9 Months Ended

Sep. 30, 2011

Reportable Segment Information [Abstract]

REPORTABLE SEGMENT INFORMATION

NOTE 13—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. Two operating segments are aggregated to form the Global Finishes Group Reportable Operating Segment (GFG) in accordance with the quantitative thresholds within ASC 280-10-50-12. Management is closely monitoring the quantitative thresholds and the performance trends within GFG on an ongoing basis. Revised Reportable Operating Segments will be established if quantitative thresholds are exceeded for a sustained basis.

	Three Months Ended September 30, 2011
						Global
	Paint Stores		Consumer			Finishes					Consolidated
(Thousands of dollars)	Group		Group			Group		Administrative			Totals
Net external sales	$	1,417,765	$	351,579		$	714,351	$	1,225		$	2,484,920
Intersegment transfers				615,307			8,174		(623,481	)
Total net sales and intersegment transfers	$	1,417,765	$	966,886		$	722,525	$	(622,256	)	$	2,484,920
Segment profit	$	236,886	$	41,023	*	$	43,508				$	321,417
Interest expense								$	(10,452	)		(10,452	)
Administrative expenses and other									(50,689	)		(50,689	)
Income before income taxes	$	236,886	$	41,023		$	43,508	$	(61,141	)	$	260,276

	Three Months Ended September 30, 2010
						Global
	Paint Stores		Consumer			Finishes					Consolidated
	Group		Group			Group		Administrative			Totals
Net external sales	$	1,286,063	$	340,365		$	544,548	$	1,283		$	2,172,259
Intersegment transfers				519,186			4,689		(523,875	)
Total net sales and intersegment transfers	$	1,286,063	$	859,551		$	549,237	$	(522,592	)	$	2,172,259
Segment profit	$	225,079	$	59,699	*	$	31,925				$	316,703
Interest expense								$	(11,310	)		(11,310	)
Administrative expenses and other									(50,014	)		(50,014	)
Income before income taxes	$	225,079	$	59,699		$	31,925	$	(61,324	)	$	255,379

* Segment profit includes $6,446 and $6,787 of mark-up on intersegment transfers realized as a result of external sales by the Paint Stores Group during the third quarter of 2011 and 2010, respectively.

	Nine Months Ended September 30, 2011
						Global
	Paint Stores		Consumer			Finishes					Consolidated
	Group		Group			Group		Administrative			Totals
Net external sales	$	3,646,079	$	1,022,143		$	2,023,388	$	3,647		$	6,695,257
Intersegment transfers				1,609,877			20,666		(1,630,543	)
Total net sales and intersegment transfers	$	3,646,079	$	2,632,020		$	2,044,054	$	(1,626,896	)	$	6,695,257
Segment profit	$	512,374	$	143,484	**	$	126,388				$	782,246
Interest expense								$	(32,874	)		(32,874	)
Administrative expenses and other									(137,367	)		(137,367	)
Income before income taxes	$	512,374	$	143,484		$	126,388	$	(170,241	)	$	612,005

	Nine Months Ended September 30, 2010
						Global
	Paint Stores		Consumer			Finishes					Consolidated
	Group		Group			Group		Administrative			Totals
Net external sales	$	3,381,955	$	1,042,731		$	1,452,194	$	3,925		$	5,880,805
Intersegment transfers				1,388,908			13,688		(1,402,596	)
Total net sales and intersegment transfers	$	3,381,955	$	2,431,639		$	1,465,882	$	(1,398,671	)	$	5,880,805
Segment profit	$	484,795	$	177,859	**	$	94,882				$	757,536
Interest expense								$	(49,219	)		(49,219	)
Administrative expenses and other									(134,231	)		(134,231	)
Income before income taxes	$	484,795	$	177,859		$	94,882	$	(183,450	)	$	574,086

** Segment profit includes $18,255 and $17,208 of mark-up on intersegment transfers realized as a result of external sales by the Paint Stores Group during the first nine months of 2011 and 2010, respectively.

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 Operating 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 $513.8 million and $22.0 million, respectively, for the third quarter of 2011, and $376.1 million and $29.5 million, respectively, for the third quarter of 2010. Net external sales and segment profit of these subsidiaries were $1.49 billion and $83.8 million, respectively, for the first nine months of 2011, and $995.2 million and $77.7 million, respectively, for the first nine months of 2010. Long-lived assets of these subsidiaries totaled $648.2 million and $632.4 million at September 30, 2011 and September 30, 2010, 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.