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Reportable Business Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Reportable Business Segment Information Reportable Business Segment Information
Segment Organization and Products
PPG is a multinational manufacturer with 10 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The Company’s reportable business segments include the following two segments: Performance Coatings and Industrial Coatings. The operating segments have been aggregated based on economic similarities, the nature of their products, production processes, end-use markets and methods of distribution.
The Performance Coatings reportable business segment is comprised of the automotive refinish coatings, aerospace coatings, architectural coatings – Americas and Asia Pacific, architectural coatings – EMEA, protective and marine coatings and traffic solutions operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings, sealants and finishes, along with paint strippers, stains and related chemicals, pavement marking products, transparencies and transparent armor.
The Industrial Coatings reportable business segment is comprised of the automotive OEM coatings, industrial coatings, packaging coatings, and the specialty coatings and materials operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings and finishes along with adhesives, sealants, metal pretreatment products, optical monomers and coatings, precipitated silicas and other specialty materials.
Production facilities and sales for Performance Coatings and Industrial Coatings are global. PPG’s reportable business segments continue to pursue opportunities to further develop their global reach. Each of the reportable business segments in which PPG is engaged is highly competitive. The diversification of our product lines and the worldwide sales tend to minimize the impact on PPG’s business of changes in demand in a particular industry or in a particular geographic area.
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (see Note 1, “Summary of Significant Accounting Policies”). The Company allocates resources to operating segments and evaluates the performance of operating segments based upon segment income, which is income before interest expense – net, income taxes, and noncontrolling interests and excludes certain charges which are considered to be unusual or non-recurring. The Company also evaluates performance of operating segments based on working capital reduction, selling price increases and sales volume growth.
Corporate unallocated costs include the costs of corporate staff functions not directly associated with the operating segments, certain legal matters, net of related insurance recoveries, the cost of certain insurance and stock-based compensation programs and certain other unusual or non-recurring items. The service cost component of net periodic benefit cost related to current employees of each reportable business segment is allocated to that reportable business segment and the remaining portion of net periodic pension expense is included in the Corporate unallocated costs.
Product movement between Performance Coatings and Industrial Coatings is limited, is accounted for as an inventory transfer, and is recorded at cost plus a mark-up, the impact of which is not significant to the net sales or segment income of the reportable business segments.
($ in millions)202220212020
Net sales to external customers
Performance Coatings$10,694 $10,333 $8,495 
Industrial Coatings6,958 6,469 5,339 
Total Net sales$17,652 $16,802 $13,834 
Segment income
Performance Coatings$1,399 $1,491 $1,359 
Industrial Coatings643 680 750 
Total Segment income$2,042 $2,171 $2,109 
Corporate / Non-Segment Items
Corporate unallocated(218)(194)(233)
Interest expense, net of interest income(113)(95)(115)
Impairment and other related charges, net(1)
(245)(21)(93)
Business restructuring-related costs, net(2)
(75)(27)(224)
Transaction-related costs, net(3)
(10)(86)(9)
Pension settlement charge— (50)— 
Environmental remediation charges, net— (35)(26)
Expense incurred due to natural disasters(4)
— (17)(17)
Change in allowance for doubtful accounts related to COVID-19— 14 (30)
Income from legal settlements— 22 — 
Asbestos-related claims reserve adjustment(5)
— 133 — 
Total Income before income taxes$1,381 $1,815 $1,362 
($ in millions)202220212020
Depreciation and amortization
Performance Coatings$296 $308 $251 
Industrial Coatings207 212 200 
Corporate / Non-Segment Items51 41 58 
Total$554 $561 $509 
Share of net earnings of equity affiliates
Performance Coatings$7 $5 $3 
Corporate / Non-Segment Items18 10 5 
Total $25 $15 $8 
Segment assets(6)
Performance Coatings$13,088 $13,395 $11,551 
Industrial Coatings5,802 5,807 5,040 
Corporate / Non-Segment Items1,854 2,149 2,965 
Total$20,744 $21,351 $19,556 
Investment in equity affiliates
Performance Coatings$42 $33 $31 
Industrial Coatings15 15 15 
Corporate / Non-Segment Items77 78 74 
Total $134 $126 $120 
Expenditures for property (including business acquisitions)
Performance Coatings$254 $1,698 $1,293 
Industrial Coatings313 784 166 
Corporate / Non-Segment Items65 26 14 
Total$632 $2,508 $1,473 
($ in millions)202220212020
Geographic Information
Segment income   
United States and Canada$819 $865 $855 
EMEA505 612 572 
Asia Pacific332 354 382 
Latin America386 340 300 
Total$2,042 $2,171 $2,109 
Property, plant and equipment — net   
United States and Canada$1,394 $1,377 $1,351 
EMEA943 1,069 857 
Asia Pacific685 702 623 
Latin America306 294 296 
Total$3,328 $3,442 $3,127 
(1)In the first quarter 2022, the Company recorded impairment and other related charges due to the wind down of the company’s operations in Russia. Subsequently, the Company released a portion of the previously established reserves for Receivables and Inventories due to the collection of certain trade receivables and the realization of certain inventories. Also in 2022, impairment and other related charges were recorded for the write-down of certain assets and liabilities related to the planned sale of a non-core business and for certain asset write downs. In 2021 and 2020, impairment charges were recorded for the write-down of certain assets related to the previously planned sale of certain smaller entities in non-strategic regions. Also in 2020, an impairment charge was recorded to reduce the carrying value of an indefinite-lived trademark.
(2)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 and a $34 million gain on the sale of certain assets in 2021 in connection with the Company’s manufacturing footprint consolidation plans and associated restructuring programs. This gain is included in Other (income)/charges, net in the consolidated statement of income.
(3)Transaction-related costs, net 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 statement of income. Acquisition-related costs, net 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 consolidated statement of income.
(4)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.
(5)In 2021, the reserve for asbestos-related claims was reduced to reflect the Company’s current estimate of potential liability for these claims.
(6)Segment assets are the total assets used in the operation of each segment. Corporate assets principally include amounts recorded in Cash and cash equivalents, Deferred income taxes, and Property, plant and equipment, net on the consolidated balance sheet.