v3.25.2
REPORTABLE SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
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 the allocation of resources in accordance with the Segment Reporting Topic of the ASC. The Company determined it has three reportable segments: Paint Stores Group, Consumer Brands Group and Performance Coatings Group (individually, a Reportable Segment and collectively, the Reportable Segments). Factors considered in determining the three Reportable Segments of the Company include the nature of business activities, the management directly accountable to the Company’s Chief Operating Decision Maker (CODM) for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors. The Company reports all other business activities within the Administrative function.
The Company’s CODM has been identified as the Chair, President and Chief Executive Officer because she has the final authority over performance assessment and resource allocation decisions. Because of the diverse operations of the Company, the CODM regularly receives and uses discrete financial information about each Reportable Segment as well as select supplemental financial information about certain divisions, business units or subsidiaries of the Company. The CODM uses all such financial information for performance assessments and resource allocation decisions by comparing actual results versus forecasted and historical financial information and discussing observations with the broader leadership team responsible for managing the operations of each Reportable Segment on a monthly basis. This includes probing inquiries and consideration of relevant internal and external factors to drive meaningful insights and specific actions. The CODM evaluates the performance of and allocates resources to the Reportable Segments based on Segment profit or loss, which represents the segments’ Income before income taxes. The accounting policies of the Reportable Segments are the same as those described in Note 1.
Refer to Note 22 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for further details on the Company’s Reportable Segments.
Three Months Ended June 30, 2025
 Paint
Stores
Group		Consumer
Brands
Group		Performance
Coatings
Group		AdministrativeConsolidated
Totals
Net sales$3,702.2 $809.4 $1,801.1 $1.8 $6,314.5 
Intersegment transfers— 1,467.8 8.4 (1,476.2)— 
Total net sales and intersegment transfers3,702.2 2,277.2 1,809.5 (1,474.4)6,314.5 
Cost of goods sold1,614.2 1,886.3 1,181.7 (1,486.0)3,196.2 
Selling, general and administrative expenses1,173.7 219.1 378.2 240.6 2,011.6 
Interest expense— 0.1 — 112.3 112.4 
Other segment items (1)
(2.2)7.5 4.5 (1.2)8.6 
Income before income taxes$916.5 $164.2 $245.1 $(340.1)$985.7 
% to Net sales24.8 %20.3 %13.6 %nm15.6 %
Supplemental Information:
Capital expenditures$34.7 $82.3 $13.8 $50.7 $181.5 
Depreciation (2)
22.0 42.1 4.6 10.6 79.3 
Amortization (3)
0.4 17.0 65.8 0.2 83.4 
nm - not meaningful
(1)    Other segment items includes Other general expense (income) - net, Interest income and Other expense (income) - net. See Note 15.
(2)    Depreciation is recorded within Cost of goods sold and Selling, general and administrative expenses.
(3)    Amortization is recorded with Selling, general and administrative expenses.
Three Months Ended June 30, 2024
 Paint
Stores
Group		Consumer
Brands
Group		Performance
Coatings
Group		AdministrativeConsolidated
Totals
Net sales$3,619.9 $844.3 $1,806.4 $0.9 $6,271.5 
Intersegment transfers— 1,449.9 6.7 (1,456.6)— 
Total net sales and intersegment transfers3,619.9 2,294.2 1,813.1 (1,455.7)6,271.5 
Cost of good sold1,625.4 1,866.2 1,168.1 (1,451.6)3,208.1 
Selling, general and administrative expenses1,090.9 222.1 365.1 167.6 1,845.7 
Interest expense— — — 110.8 110.8 
Other segment items (1)
(3.5)1.5 (21.6)(42.9)(66.5)
Income before income taxes $907.1 $204.4 $301.5 $(239.6)$1,173.4 
% to Net Sales25.1 %24.2 %16.7 %nm18.7 %
Supplemental Information:
Capital expenditures$30.7 $44.0 $3.8 $172.4 $250.9 
Depreciation (2)
21.9 39.2 4.0 6.7 71.8 
Amortization (3)
0.3 16.3 64.3 0.6 81.5 
nm - not meaningful
(1)    Other segment items includes Other general expense (income) - net, Interest income and Other expense (income) - net. See Note 15.
(2)    Depreciation is recorded within Cost of goods sold and Selling, general and administrative expenses.
(3)    Amortization is recorded with Selling, general and administrative expenses.
Six Months Ended June 30, 2025
Paint
Stores
Group		Consumer
Brands
Group		Performance
Coatings
Group		AdministrativeConsolidated
Totals
Net sales$6,642.0 $1,571.6 $3,403.1 $3.5 $11,620.2 
Intersegment transfers— 2,688.8 13.7 (2,702.5)— 
Total net sales and intersegment transfers6,642.0 4,260.4 3,416.8 (2,699.0)11,620.2 
Cost of goods sold2,922.1 3,519.0 2,217.7 (2,716.0)5,942.8 
Selling, general and administrative expenses2,266.7 436.8 729.7 372.2 3,805.4 
Interest expense— 0.1 — 216.1 216.2 
Other segment items (1)
(4.5)8.4 11.6 1.6 17.1 
Income before income taxes $1,457.7 $296.1 $457.8 $(572.9)$1,638.7 
% to Net sales21.9 %18.8 %13.5 %nm14.1 %
Supplemental Information:
Capital expenditures$61.4 $139.2 $26.2 $144.0 $370.8 
Depreciation (2)
44.1 88.0 9.4 17.7 159.2 
Amortization (3)
0.8 33.8 129.3 0.5 164.4 
nm - not meaningful
(1)    Other segment items includes Other general expense (income) - net, Interest income and Other expense (income) - net. See Note 15.
(2)    Depreciation is recorded within Cost of goods sold and Selling, general and administrative expenses.
(3)    Amortization is recorded with Selling, general and administrative expenses.
Six Months Ended June 30, 2024
 Paint
Stores
Group		Consumer
Brands
Group		Performance
Coatings
Group		AdministrativeConsolidated
Totals
Net sales$6,492.9 $1,655.3 $3,488.3 $2.3 $11,638.8 
Intersegment transfers— 2,661.7 43.8 (2,705.5)— 
Total net sales and intersegment transfers6,492.9 4,317.0 3,532.1 (2,703.2)11,638.8 
Cost of goods sold2,946.3 3,505.8 2,289.6 (2,697.3)6,044.4 
Selling, general and administrative expenses2,156.7 445.2 723.4 320.2 3,645.5 
Interest expense— — — 213.8 213.8 
Other segment items (1)
(10.4)8.2 (20.1)(56.0)(78.3)
Income before income taxes $1,400.3 $357.8 $539.2 $(483.9)$1,813.4 
% to Net sales21.6 %21.6 %15.5 %nm15.6 %
Supplemental Information:
Capital expenditures$66.4 $128.1 $0.4 $339.8 $534.7 
Depreciation (2)
43.3 76.4 9.7 13.5 142.9 
Amortization (3)
1.1 33.3 128.1 1.1 163.6 
nm - not meaningful
(1)    Other segment items includes Other general expense (income) - net, Interest income and Other expense (income) - net. See Note 15.
(2)    Depreciation is recorded within Cost of goods sold and Selling, general and administrative expenses.
(3)    Amortization is recorded with Selling, general and administrative expenses.

In the Reportable Segment financial information, Segment profit represents each Reportable Segment’s Income before income taxes. Domestic intersegment transfers are primarily accounted for at the approximate fully absorbed manufactured cost, based on normal capacity volumes, plus customary distribution costs for paint products. Non-paint domestic and all international intersegment transfers are primarily accounted for at values comparable to normal unaffiliated customer sales. All intersegment transfers are eliminated within the Administrative function. Due to the nature of the Company’s integrated manufacturing operations and centralized administrative and information technology support, a substantial amount of allocations are made to determine segment financial information. Expenses that are specifically identifiable to a certain Reportable Segment are allocated accordingly. For expenses that are not specifically identifiable to a certain Reportable Segment, an appropriate allocation base is identified, and expenses are allocated based on each segment’s respective share of the allocation base. The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM and includes intersegment expenses within the amounts shown.
Net sales of all consolidated foreign subsidiaries were $1.155 billion and $1.143 billion for the three months ended June 30, 2025 and 2024, respectively. Net sales of all consolidated foreign subsidiaries were $2.200 billion and $2.246 billion for the six months ended June 30, 2025 and 2024, respectively. Long-lived assets of these subsidiaries totaled $3.797 billion and $3.456 billion at June 30, 2025 and 2024, respectively. Domestic operations accounted for the remaining Net sales and long-lived assets. No single geographic area outside the United States was significant relative to consolidated Net sales, Income before income taxes or consolidated long-lived assets. Export sales and sales to any individual customer were each less than 10% of consolidated Net sales in 2025 and 2024.
The following table presents identifiable assets for each of the Company’s Reportable Segments:
Paint
Stores
Group		Consumer
Brands
Group		Performance
Coatings
Group		AdministrativeConsolidated
Totals
June 30, 2025$6,446.1 $7,151.8 $8,293.4 $3,472.3 $25,363.6 
December 31, 20245,878.0 6,854.7 7,847.4 3,052.5 23,632.6 
June 30, 20246,202.9 6,709.1 8,138.3 2,683.7 23,734.0 
For further details on the Company’s Reportable Segments, see Note 22 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.