Reportable Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Reportable Business Segment Net Sales and Segment Income

Reportable business segment net sales and segment income for the three and nine months ended September 30, 2021 and 2020 were as follows:


	Three Months Ended September 30		Nine Months Ended September 30
($ in millions)	2021	2020	2021	2020
Net sales:
Performance Coatings	$2,758	$2,251	$7,826	$6,328
Industrial Coatings	1,614	1,434	4,786	3,749
Total	$4,372	$3,685	$12,612	$10,077
Segment income:
Performance Coatings	$408	$426	$1,248	$1,060
Industrial Coatings	140	253	575	468
Total	$548	$679	$1,823	$1,528
Corporate	(45)	(55)	(149)	(165)
Interest expense, net of interest income	(23)	(30)	(72)	(89)
Acquisition-related costs, net (a)	(43)	—	(81)	—
Environmental remediation charges	—	—	(26)	(12)
Impairment charge (b)	(21)	—	(21)	—
Expenses incurred due to natural disasters (c)	—	(8)	(17)	(8)
Change in allowance for doubtful accounts related to COVID-19	—	—	14	(30)
Income from legal settlements	—	—	22	—
Business restructuring-related costs, net (d)	25	(14)	40	(200)
Debt extinguishment charge	—	—	—	(7)
Income before income taxes	$441	$572	$1,533	$1,017

(a)Acquisition-related costs 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 condensed consolidated statement of income. Acquisition-related costs 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 condensed consolidated statement of income.

(b)An incremental impairment charge was recorded in the third quarter 2021 related to the previously planned sale of certain smaller entities in non-strategic regions.

(c)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.

(d)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