10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 10-Q

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☑    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2023

or

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 1-1687

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PPG INDUSTRIES INC.

(Exact name of registrant as specified in its charter)

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25-0730780

(I.R.S. Employer Identification No.)

Pennsylvania

(State or Other Jurisdiction of Incorporation or Organization)

One PPG Place, Pittsburgh, Pennsylvania

(Address of Principal Executive Offices)

15272

(Zip Code)

(412) 434-3131

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.66 2/3	PPG	New York Stock Exchange
0.875% Notes due 2025	PPG 25	New York Stock Exchange
1.875% Notes due 2025	PPG 25A	New York Stock Exchange
1.400% Notes due 2027	PPG 27	New York Stock Exchange
2.750% Notes due 2029	PPG 29A	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☑     No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☑    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☑	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes ☐    No ☑

As of June 30, 2023, 235,513,001 shares of the Registrant’s common stock, par value $1.66 2/3 per share, were outstanding.

PPG INDUSTRIES, INC. AND SUBSIDIARIES

INDEX

		PAGE
Part I. Financial Information
Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Statement of Income	2
	Condensed Consolidated Statement of Comprehensive Income	3
	Condensed Consolidated Balance Sheet	4
	Condensed Consolidated Statement of Shareholders' Equity	5
	Condensed Consolidated Statement of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	35
Part II. Other Information
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 6.	Exhibits	36
Signatures		38

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Income (Unaudited)

	Three Months Ended June 30		Six Months Ended June 30
($ in millions, except per share amounts)	2023	2022	2023	2022
Net sales	$4,872	$4,691	$9,252	$8,999
Cost of sales, exclusive of depreciation and amortization	2,866	2,954	5,462	5,652
Selling, general and administrative	1,069	982	2,061	1,956
Depreciation	93	99	185	201
Amortization	40	42	81	85
Research and development, net	110	115	214	230
Interest expense	67	38	126	68
Interest income	(32)	(11)	(57)	(20)
Impairment and other related (income)/charges, net	—	(60)	—	230
Pension settlement charge	—	—	190	—
Other charges/(income), net	13	(34)	(9)	(47)
Income before income taxes	$646	$566	$999	$644
Income tax expense	149	118	229	173
Income from continuing operations	$497	$448	$770	$471
Loss from discontinued operations, net of tax	—	(2)	—	(2)
Net income attributable to controlling and noncontrolling interests	$497	$446	$770	$469
Net income attributable to noncontrolling interests	(7)	(5)	(16)	(10)
Net income (attributable to PPG)	$490	$441	$754	$459
Amounts attributable to PPG:
Income from continuing operations, net of tax	$490	$443	$754	$461
Loss from discontinued operations, net of tax	—	(2)	—	(2)
Net income (attributable to PPG)	$490	$441	$754	$459
Earnings per common share:
Income from continuing operations, net of tax	$2.08	$1.87	$3.20	$1.95
Loss from discontinued operations, net of tax	—	(0.01)	—	(0.01)
Earnings per common share (attributable to PPG)	$2.08	$1.86	$3.20	$1.94
Earnings per common share – assuming dilution:
Income from continuing operations, net of tax	$2.06	$1.86	$3.18	$1.94
Loss from discontinued operations, net of tax	—	(0.01)	—	(0.01)
Earnings per common share (attributable to PPG) - assuming dilution	$2.06	$1.85	$3.18	$1.93

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

2

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Net income attributable to controlling and noncontrolling interests	$497	$446	$770	$469
Other comprehensive income/(loss), net of tax:
Defined benefit pension and other postretirement benefits	—	13	139	9
Unrealized foreign currency translation adjustments	109	(227)	373	(190)
Other comprehensive income/(loss), net of tax	$109	($214)	$512	($181)
Total comprehensive income	$606	$232	$1,282	$288
Less: amounts attributable to noncontrolling interests:
Net income	(7)	(5)	(16)	(10)
Unrealized foreign currency translation adjustments	—	6	(1)	9
Comprehensive income attributable to PPG	$599	$233	$1,265	$287

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

3

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheet (Unaudited)

($ in millions)	June 30, 2023	December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$1,228	$1,099
Short-term investments	68	55
Receivables, net	3,821	3,303
Inventories	2,506	2,272
Other current assets	445	444
Total current assets	$8,068	$7,173
Property, plant and equipment (net of accumulated depreciation of $4,841 and $4,649)	3,418	3,328
Goodwill	6,294	6,078
Identifiable intangible assets, net	2,493	2,414
Deferred income taxes	243	95
Investments	262	244
Operating lease right-of-use assets	836	829
Other assets	602	583
Total	$22,216	$20,744
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities	$4,306	$4,087
Restructuring reserves	113	138
Short-term debt and current portion of long-term debt	809	313
Current portion of operating lease liabilities	188	183
Total current liabilities	$5,416	$4,721
Long-term debt	6,099	6,503
Operating lease liabilities	633	636
Accrued pensions	569	566
Other postretirement benefits	473	476
Deferred income taxes	577	501
Other liabilities	657	632
Total liabilities	$14,424	$14,035
Commitments and contingent liabilities (Note 14)
Shareholders’ equity:
Common stock	$969	$969
Additional paid-in capital	1,166	1,130
Retained earnings	21,290	20,828
Treasury stock, at cost	(13,512)	(13,525)
Accumulated other comprehensive loss	(2,299)	(2,810)
Total PPG shareholders’ equity	$7,614	$6,592
Noncontrolling interests	178	117
Total shareholders’ equity	$7,792	$6,709
Total	$22,216	$20,744

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

4

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Shareholders' Equity (Unaudited)

($ in millions)	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total PPG	Non-controlling Interests	Total
January 1, 2023	$969	$1,130	$20,828	($13,525)	($2,810)	$6,592	$117	$6,709
Net income attributable to controlling and noncontrolling interests	—	—	264	—	—	264	9	273
Other comprehensive income, net of tax	—	—	—	—	402	402	1	403
Cash dividends	—	—	(146)	—	—	(146)	—	(146)
Issuance of treasury stock	—	21	—	10	—	31	—	31
Stock-based compensation activity	—	(1)	—	—	—	(1)	—	(1)
Dividends paid on subsidiary common stock to noncontrolling interests	—	—	—	—	—	—	(1)	(1)
Reductions in noncontrolling interests	—	—	—	—	—	—	(15)	(15)
March 31, 2023	$969	$1,150	$20,946	($13,515)	($2,408)	$7,142	$111	$7,253
Net income attributable to the controlling and noncontrolling interests	—	—	490	—	—	490	7	497
Other comprehensive income, net of tax	—	—	—	—	109	109	—	109
Cash dividends	—	—	(146)	—	—	(146)	—	(146)
Purchase of treasury stock	—	—	—	—	—	—	—	—
Issuance of treasury stock	—	7	—	3	—	10	—	10
Stock-based compensation activity	—	9	—	—	—	9	—	9
Dividends paid on subsidiary common stock to noncontrolling interests	—	—	—	—	—	—	(10)	(10)
Acquisition of noncontrolling interests	—	—	—	—	—	—	70	70
June 30, 2023	$969	$1,166	$21,290	($13,512)	($2,299)	$7,614	$178	$7,792

5

($ in millions)	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total PPG	Non-controlling Interests	Total
January 1, 2022	$969	$1,081	$20,372	($13,386)	($2,750)	$6,286	$125	$6,411
Net income attributable to controlling and noncontrolling interests	—	—	18	—	—	18	5	23
Other comprehensive income/(loss), net of tax	—	—	—	—	36	36	(3)	33
Cash dividends	—	—	(139)	—	—	(139)	—	(139)
Issuance of treasury stock	—	24	—	5	—	29	—	29
Stock-based compensation activity	—	(12)	—	—	—	(12)	—	(12)
Dividends paid on subsidiary common stock to noncontrolling interests	—	—	—	—	—	—	(1)	(1)
Reductions in noncontrolling interests	—	—	—	—	—	—	(11)	(11)
March 31, 2022	$969	$1,093	$20,251	($13,381)	($2,714)	$6,218	$115	$6,333
Net income attributable to the controlling and noncontrolling interests	—	—	441	—	—	441	5	446
Other comprehensive loss, net of tax	—	—	—	—	(208)	(208)	(6)	(214)
Cash dividends	—	—	(140)	—	—	(140)	—	(140)
Purchase of treasury stock	—	—	—	(150)	—	(150)	—	(150)
Issuance of treasury stock	—	6	—	3	—	9	—	9
Stock-based compensation activity	—	9	—	—	—	9	—	9
Dividends paid on subsidiary common stock to noncontrolling interests	—	—	—	—	—	—	(6)	(6)
Other	—	3	—	—	—	3	1	4
June 30, 2022	$969	$1,111	$20,552	($13,528)	($2,922)	$6,182	$109	$6,291

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

6

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Cash Flows (Unaudited)

	Six Months Ended June 30
($ in millions)	2023	2022
Operating activities:
Income from continuing operations	$770	$471
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization	266	286
Pension settlement charge	190	—
Impairment and other related charges, net	—	230
Stock-based compensation expense	34	18
Deferred income taxes	(112)	(95)
Cash used for restructuring actions	(29)	(52)
Change in certain asset and liability accounts (net of acquisitions):
Receivables	(528)	(792)
Inventories	(176)	(437)
Other current assets	(61)	(83)
Accounts payable and accrued liabilities	156	417
Taxes and interest payable	51	33
Noncurrent assets and liabilities, net	(77)	(25)
Other	137	(107)
Cash from/(used for) operating activities	$621	($136)
Investing activities:
Capital expenditures	($242)	($264)
Business acquisitions, net of cash balances acquired	(106)	(43)
Proceeds from asset sales	—	116
Proceeds from the settlement of cross currency swap contracts	52	18
Other	6	23
Cash used for investing activities	($290)	($150)
Financing activities:
Net proceeds from/(payments on) commercial paper and short-term debt	$100	($440)
Net change in borrowing with maturities of three months or less	(12)	15
Proceeds from Term Loan	550	—
Repayment of Term Loan Credit Agreement	(300)	—
Proceeds from the issuance of debt, net of discounts and fees	—	1,116
Repayment of long-term debt	(300)	—
Purchase of treasury stock	—	(175)
Dividends paid on PPG common stock	(292)	(279)
Other	(12)	(24)
Cash (used for)/from financing activities	($266)	$213
Effect of currency exchange rate changes on cash and cash equivalents	64	(1)
Net increase/(decrease) in cash and cash equivalents	$129	($74)
Cash and cash equivalents, beginning of period	1,099	1,005
Cash and cash equivalents, end of period	$1,228	$931
Supplemental disclosures of cash flow information:
Interest paid, net of amount capitalized	$130	$69
Taxes paid, net of refunds	$270	$214
Supplemental disclosure of noncash investing and financing activities:
Capital expenditures accrued within Accounts payable and accrued liabilities at period-end	$73	$51
Purchases of treasury stock transacted but not yet settled	$—	$15

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

7

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1.Basis of Presentation

The condensed consolidated financial statements included herein are unaudited and have been prepared following the requirements of the Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim reporting. Under these rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. These statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the financial position and shareholders' equity of PPG as of June 30, 2023 and the results of its operations and cash flows for the three and six months ended June 30, 2023 and 2022. All intercompany balances and transactions have been eliminated. Material subsequent events are evaluated through the report issuance date and disclosed where applicable. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in PPG's 2022 Annual Report on Form 10-K (the "2022 Form 10-K").

Net sales, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results of operations for the three and six months ended June 30, 2023 and the trends in these unaudited condensed consolidated financial statements may not necessarily be indicative of the results to be expected for the full year.

Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on our previously reported Net income, total assets, cash flows or shareholders’ equity.

2.New Accounting Standards

Accounting Standards Adopted in 2023

Effective January 1, 2023, PPG adopted Accounting Standards Update ("ASU") No. 2022-04, “Liabilities - Supplier Finance Programs." This ASU is intended to enhance the transparency surrounding the use of supplier finance programs. The guidance does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs.

PPG has certain voluntary supply chain finance programs with financial intermediaries which provide participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. PPG’s responsibility is limited to making payments on the terms originally negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The range of payment terms PPG negotiates with suppliers are consistent, regardless of whether a supplier participates in a supply chain finance program. The total amount due to financial intermediaries to settle supplier invoices under supply chain finance programs was $179 million and $390 million as of June 30, 2023 and December 31, 2022, respectively. These amounts are included within Accounts payable and accrued liabilities on the accompanying condensed consolidated balance sheet.

Recently Issued Accounting Standards

There were no accounting pronouncements promulgated prior to June 30, 2023 that are not effective until a future date which are expected to have a material impact on PPG's consolidated financial position, results of operations or cash flows.

3.     Inventories

($ in millions)	June 30, 2023	December 31, 2022
Finished products	$1,390	$1,209
Work in process	275	238
Raw materials	794	784
Supplies	47	41
Total Inventories	$2,506	$2,272

Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 16% and 21% of total inventories at June 30, 2023 and December 31, 2022, respectively. If the first-in, first-out ("FIFO") method of inventory valuation had been used, inventories would have been $270 million and $272 million higher as of June 30, 2023 and December 31, 2022, respectively.

8

4.    Goodwill and Other Identifiable Intangible Assets

The Company tests indefinite-lived intangible assets and goodwill for impairment by performing either a qualitative evaluation or a quantitative test at least annually, or more frequently if an indication of impairment arises. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit or asset is less than its carrying amount.

The Company did not identify an indication of goodwill impairment for any of its reporting units or an indication of impairment of any of its indefinite-lived intangible assets during the six months ended June 30, 2023.

The change in the carrying amount of goodwill attributable to each reportable segment for the six months ended June 30, 2023 was as follows:

($ in millions)	Performance Coatings	Industrial Coatings	Total
January 1, 2023	$4,881	$1,197	$6,078
Acquisitions, including purchase accounting adjustments	122	10	132
Foreign currency impact	80	4	84
June 30, 2023	$5,083	$1,211	$6,294

A summary of the carrying value of the Company's identifiable intangible assets is as follows:

	June 30, 2023			December 31, 2022
($ in millions)	Gross Carrying Amount	Accumulated Amortization	Net	Gross Carrying Amount	Accumulated Amortization	Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks	$1,432	$—	$1,432	$1,325	$—	$1,325
Definite-Lived Identifiable Intangible Assets
Acquired technology	$844	($658)	$186	$827	($636)	$191
Customer-related	1,917	(1,192)	725	1,855	(1,112)	743
Trade names	318	(170)	148	311	(158)	153
Other	50	(48)	2	50	(48)	2
Total Definite-Lived Intangible Assets	$3,129	($2,068)	$1,061	$3,043	($1,954)	$1,089
Total Identifiable Intangible Assets	$4,561	($2,068)	$2,493	$4,368	($1,954)	$2,414

The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives.

As of June 30, 2023, estimated future amortization expense of identifiable intangible assets is as follows:

($ in millions)	Future Amortization Expense
Remaining six months of 2023	$71
2024	$132
2025	$120
2026	$98
2027	$90
2028	$78
Thereafter	$472

5.     Business Restructuring

The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including both operations from acquisitions and headcount reduction programs. These charges consist primarily of severance costs and certain other cash costs. As a result of these programs, the Company also incurs incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected useful life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 16, "Reportable Business Segment Information" for additional information.

9

The following table summarizes restructuring reserve activity for the six months ended June 30, 2023 and 2022:

	Total Reserve
($ in millions)	2023	2022
January 1	$169	$231
Approved restructuring actions	12	—
Release of prior reserves and other adjustments(a)	(15)	—
Cash payments	(29)	(52)
Foreign currency impact	2	(13)
June 30	$139	$166

(a)Certain releases were recorded to reflect the current estimate of costs to complete planned business restructuring actions.

The majority of the approved business restructuring actions and associated cash outlays are expected to be completed in 2023 and 2024.

6.    Borrowings

In April 2023, PPG entered into a €500 million Term Loan Credit Agreement (the "Term Loan"). The Term Loan provides the Company with the ability to increase the size of the loan by an amount not to exceed €250 million. The Term Loan contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Term Loan terminates and all amounts outstanding are payable in April 2026. In April 2023, PPG borrowed €500 million under the Term Loan. The notes are denominated in euro and have been designated as hedges of net investments in the Company’s European operations. For more information, refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements.”

In March 2023, PPG's $300 million 3.2% notes matured, and the Company repaid this obligation using cash on hand.

In May 2022, PPG completed a public offering of €300 million 1.875% Notes due 2025 and €700 million 2.750% Notes due 2029. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2022 Indenture"). The 2022 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase Notes upon a Change of Control Triggering Event (as defined in the 2022 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, were $1,061 million. The notes are denominated in euro and have been designated as hedges of net investments in the Company’s European operations. For more information, refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements.”

In March 2022, PPG privately placed a 15-year €50 million 1.95% fixed interest note. This note contains covenants materially consistent with the 1.875% notes discussed above. This debt arrangement is denominated in euros and has been designated as a net investment hedge of the Company's European operations. Refer to Note 12 "Financial Instruments, Hedging Activities and Fair Value Measurements" for additional information.

In February 2021, PPG entered into a $2.0 billion Term Loan Credit Agreement (the "Term Loan Credit Agreement") to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. The Term Loan Credit Agreement provided the Company with the ability to borrow up to an aggregate principal amount of $2.0 billion on an unsecured basis. In addition to the amounts borrowed to finance the acquisition of Tikkurila, the Term Loan Credit Agreement allowed the Company to make up to eleven additional borrowings prior to December 31, 2021, to be used for working capital and general corporate purposes. The Term Loan Credit Agreement contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Term Loan Credit Agreement matures

10

and all outstanding borrowings are due and payable on the third anniversary of the date of the initial borrowing under the Agreement. In March 2023, PPG amended the Term Loan Credit Agreement to replace the LIBOR-based reference interest rate option with a reference interest rate option based upon Term Secured Overnight Financing Rate ("SOFR"). The other terms of the Term Loan Credit Agreement remain unchanged. In June 2021, PPG borrowed $700 million under the Term Loan Credit Agreement to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. In December 2021, PPG borrowed an additional $700 million under the Term Loan Credit Agreement. In 2022, PPG repaid $300 million of the Term Loan Credit Agreement using cash on hand. In the first quarter 2023, PPG repaid $100 million of the Term Loan Credit Agreement using cash on hand. In the second quarter 2023, PPG repaid $200 million of the Term Loan Credit Agreement using cash on hand. Borrowings of $800 million and $1.1 billion were outstanding under the Term Loan Credit Agreement as of June 30, 2023 and December 31, 2022, respectively.

In March 2023, PPG amended its five-year credit agreement (the “Credit Agreement”) dated as of August 30, 2019. The amendments to the Credit Agreement replace the LIBOR-based reference interest rate option with a reference interest rate option based upon Term SOFR. The other terms of the Credit Agreement remain unchanged. The Credit Agreement provides for a $2.2 billion unsecured revolving credit facility. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions precedent. The Credit Agreement will terminate on August 30, 2024. The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain subsidiaries of the Company as borrowers under the Credit Agreement. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of June 30, 2023 and December 31, 2022.

The Term Loan, Term Loan Credit Agreement and Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan, Term Loan Credit Agreement and Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of June 30, 2023, Total Indebtedness to Total Capitalization as defined under the Term Loan, Term Loan Credit Agreement and Credit Agreement was 46%.

The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. There were $100 million commercial paper borrowings outstanding as of June 30, 2023. There no commercial paper borrowings outstanding as of December 31, 2022.

As of June 30, 2023, PPG was in full compliance with the restrictive covenants under its various credit agreements, loan agreements and indentures.

Letters of Credit and Surety Bonds

The Company had outstanding letters of credit and surety bonds of $228 million as of June 30, 2023.

7.    Impairment and Other Related (Income)/Charges, Net

In the first quarter 2022, Russian military forces invaded Ukraine. This military action had significant and immediate adverse economic impacts on businesses operating in Russia and Ukraine. Based on deteriorating business conditions and regulatory restrictions, including the impact of economic sanctions imposed on Russia by the United States, the European Union and other governments, PPG immediately ceased sales to Russian state-owned entities, announced that the Company would cease all new investments in Russia and commenced actions to wind down most of the Company’s operations in Russia.

Based on this change in facts and circumstances, the long-term cash flow forecast for the Company’s operations in Russia was significantly reduced. This reduction in the long-term cash flow forecast indicated that the carrying amounts of long-lived assets and certain indefinite-lived intangible assets associated with the Company’s operations in Russia may not be recoverable, and the carrying value of these assets was tested for impairment. Additionally, the Company evaluated trade receivables for estimated future credit losses, inventories for declines in net realizable value and other current assets for impairment in light of the deteriorating economic conditions in Russia and Ukraine. As a result, during the three months ended March 31, 2022, the Company recognized $290 million of Impairment and other related (income)/charges, net in the condensed consolidated statement of income, comprised of $201 million of long-lived asset impairment charges and $89 million of other related charges.

The $201 million of long-lived asset impairment charges recorded during first quarter 2022 was comprised of $124 million related to indefinite-lived intangible assets, $54 million related to property, plant and equipment, net and $23 million related to definite-lived intangible assets. The $89 million of other related charges represented

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reserves established for receivables and other current assets and the write-down of inventories impacted by the adverse economic consequences of the Russian invasion of Ukraine.

In the second quarter 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories, resulting in recognition of income of $60 million within Impairment and other related (income)/charges, net.

The Company continues to explore various options to exit Russia, including a possible sale of its Russian business or controlled withdrawal from the Russia market.

During the three and six months ended June 30, 2023 and the twelve months ended December 31, 2022, net sales in Russia represented approximately 1% of PPG net sales.

8.    Earnings Per Common Share

The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
(number of shares in millions)	2023	2022	2023	2022
Weighted average common shares outstanding	236.0	236.4	235.9	236.5
Effect of dilutive securities:
Stock options	0.6	0.5	0.5	0.7
Other stock compensation plans	0.7	0.7	0.7	0.7
Potentially dilutive common shares	1.3	1.2	1.2	1.4
Adjusted weighted average common shares outstanding	237.3	237.6	237.1	237.9
Dividends per common share	$0.62	$0.59	$1.24	$1.18

Excluded from the computation of earnings per diluted share due to their antidilutive effect were 0.4 million and 0.9 million of outstanding stock options for the three and six months ended June 30, 2023, respectively, and 1.0 million and 0.5 million for the three and six months ended June 30, 2022, respectively.

9.    Income Taxes

	Six Months Ended June 30
	2023		2022
Effective tax rate on pretax income	22.9	%	26.9	%

The effective tax rate of 26.9% for the six months ended June 30, 2022 reflected a tax benefit of $27 million on the $230 million Impairment and other related (income)/charges, net associated with PPG's operations in Russia.

Income tax expense for the six months ended June 30, 2023 and 2022 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss. During the year, PPG management regularly updates forecasted annual pretax results for the various countries in which PPG operates based on changes in factors such as prices, shipments, product mix, raw material inflation and manufacturing operations. To the extent that actual 2023 pretax results for U.S. and foreign income or loss vary from estimates, the actual Income tax expense recognized in 2023 could be different from the forecasted amount used to estimate Income tax expense for the six months ended June 30, 2023.

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10.    Pensions and Other Postretirement Benefits

U.S. Pension Annuity Contracts

In March 2023, the Company purchased group annuity contracts that transferred to third-party insurance companies pension benefit obligations for certain of the Company’s retirees in the U.S. who were receiving their monthly retirement benefit payments from the U.S. pension plan. The amount of each affected retiree’s annuity payment is equal to the amount of such individual’s pension benefit. The purchase of group annuity contracts was funded directly by the assets of the U.S. plans. By transferring the obligations and assets to the insurance companies, the Company reduced its overall pension projected benefit obligation by $309 million and recognized a non-cash Pension settlement charge of $190 million.

The service cost component of net periodic pension benefit cost/(income) and other postretirement benefit cost is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statement of income. Except for the Pension settlement charge in the quarter ended March 31, 2023, all other components of net periodic benefit cost are recorded in Other charges/(income), net in the accompanying condensed consolidated statement of income.

Net periodic pension benefit cost/(income) and other postretirement benefit cost for the three and six months ended June 30, 2023 and 2022 was as follows:

	Pension
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Service cost	$2	$2	$4	$4
Interest cost	24	18	55	37
Expected return on plan assets	(24)	(35)	(55)	(71)
Amortization of actuarial losses	3	9	10	17
Settlements	1	—	191	—
Net periodic benefit cost/(income)	$6	($6)	$205	($13)

	Other Postretirement Benefits
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Service cost	$1	$1	$2	$4
Interest cost	6	4	13	8
Amortization of actuarial (gains)/losses	(1)	2	(1)	6
Amortization of prior service credit	(1)	(2)	(3)	(5)
Net periodic benefit cost	$5	$5	$11	$13

Net periodic pension cost was higher for both the three and six months ended June 30, 2023 compared to 2022, primarily due the Pension settlement charge recognized in the first quarter 2023 and higher interest cost driven by an increase in discount rates. In addition, declines in the market value of pension investments during 2022 resulted in a lower asset base to generate returns on plan assets in 2023.

PPG expects 2023 full year net periodic pension cost of approximately $220 million, which includes the impact of the $190 million Pension settlement charge recognized during the first quarter 2023. PPG expects 2023 full year net periodic other postretirement benefit cost of approximately $25 million.

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Contributions to Defined Benefit Pension Plans

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Non-U.S. defined benefit pension mandatory contributions	$1	$1	$2	$2

PPG expects to make contributions to its defined benefit pension plans in the range of $5 million to $10 million during the remaining six months of 2023. PPG may make voluntary contributions to its defined benefit pension plans in 2023 and beyond.

11.    Accumulated Other Comprehensive Loss (AOCL)

($ in millions)	Foreign Currency Translation Adjustments (a)	Pension and Other Postretirement Benefit Adjustments, net of tax (b)	Unrealized Gain on Derivatives, net of tax	Accumulated Other Comprehensive Loss
January 1, 2022	($1,988)	($763)	$1	($2,750)
Current year deferrals to AOCL	(191)	(4)	—	(195)
Reclassifications from AOCL to net income	10	13	—	23
June 30, 2022	($2,169)	($754)	$1	($2,922)
January 1, 2023	($2,254)	($557)	$1	($2,810)
Current year deferrals to AOCL	371	(11)	—	360
Reclassifications from AOCL to net income	1	150	—	151
June 30, 2023	($1,882)	($418)	$1	($2,299)

(a)The tax cost related to unrealized foreign currency translation adjustments on net investment hedges was $58 million and $46 million as of June 30, 2023 and 2022, respectively.

(b)The tax (benefit)/cost related to the adjustment for pension and other postretirement benefits was $(47) million and $5 million for the six months ended June 30, 2023 and 2022, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit cost (See Note 10, "Pensions and Other Postretirement Benefits").

12.    Financial Instruments, Hedging Activities and Fair Value Measurements

Financial instruments include cash and cash equivalents, short-term investments, cash held in escrow, marketable equity securities, accounts receivable, company-owned life insurance, accounts payable, short-term and long-term debt instruments, and derivatives. The fair values of these financial instruments approximated their carrying values at June 30, 2023 and December 31, 2022, in the aggregate, except for long-term debt instruments.

Hedging Activities

The Company has exposure to market risk from changes in foreign currency exchange rates and interest rates. As a result, financial instruments, including derivatives, have been used to hedge a portion of these underlying economic exposures. Certain of these instruments may qualify as fair value, cash flow, and net investment hedges upon meeting the requisite criteria, including effectiveness of offsetting hedged or underlying exposures. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in Income before income taxes in the period incurred.

PPG’s policies do not permit speculative use of derivative financial instruments. PPG enters into derivative financial instruments with high credit quality counterparties and diversifies its positions among such counterparties in order to reduce its exposure to credit losses. The Company did not realize a credit loss on derivatives during the three and six months ended June 30, 2023 and 2022.

All of PPG's outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement.

There were no derivative instruments de-designated or discontinued as hedging instruments during the three and six months ended June 30, 2023 and 2022, and there were no gains or losses deferred in Accumulated other

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comprehensive loss on the condensed consolidated balance sheet that were reclassified to Income before income taxes in the condensed consolidated statement of income in the six months ended June 30, 2023 and 2022 related to hedges of anticipated transactions that were no longer expected to occur.

Fair Value Hedges

The Company uses interest rate swaps from time to time to manage its exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value.

PPG has interest rate swaps which converted $375 million and $525 million of fixed rate debt to variable rate debt as of June 30, 2023 and December 31, 2022, respectively. These swaps are designated as fair value hedges and are carried at fair value. Changes in the fair value of these swaps and changes in the fair value of the related debt are recorded in interest expense in the accompanying condensed consolidated statement of income. The fair value of these interest rate swaps was a liability of $22 million and $20 million at June 30, 2023 and December 31, 2022, respectively.

Cash Flow Hedges

At times, PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. There were no outstanding cash flow hedges at June 30, 2023 and December 31, 2022.

Net Investment Hedges

PPG uses cross currency swaps and foreign currency euro-denominated debt to hedge a portion of its net investment in its European operations, as follows:

PPG had U.S. dollar to euro cross currency swap contracts with total notional amounts of $475 million and $775 million as of June 30, 2023 and December 31, 2022, respectively, and designated these contracts as hedges of the Company's net investment in its European operations. During the term of these contracts, PPG will receive payments in U.S. dollars and make payments in euros to the counterparties. As of June 30, 2023 and December 31, 2022, the fair value of the U.S. dollar to euro cross currency swap contracts were net assets of $38 million and $88 million, respectively.

As of June 30, 2023 and December 31, 2022, PPG had designated €3.0 billion and €2.5 billion, respectively, of euro-denominated borrowings as hedges of a portion of its net investment in the Company's European operations. The carrying value of these instruments were $3.2 billion and $2.6 billion as of June 30, 2023 and December 31, 2022, respectively.

Other Financial Instruments

PPG uses foreign currency forward contracts to manage certain net transaction exposures that either have not been elected, or do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other charges/(income), net in the condensed consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $2.1 billion and $1.8 billion at June 30, 2023 and December 31, 2022, respectively. The fair values of these contracts was a net asset of $5 million and $24 million as of June 30, 2023 and December 31, 2022, respectively.

Gains/Losses Deferred in Accumulated Other Comprehensive Loss

The following table summarizes the amount of gains/(losses) deferred in Other comprehensive income ("OCI") and the amount and location of gains/(losses) recognized within the condensed consolidated statement of income related to derivative and debt financial instruments for the six months ended June 30, 2023 and 2022. All amounts are shown on a pretax basis.

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	June 30, 2023		June 30, 2022		Caption In Condensed Consolidated Statement of Income
($ in millions)	Loss Deferred in OCI	Gain/(Loss) Recognized	Gain Deferred in OCI	Gain Recognized
Economic
Foreign currency forward contracts	$—	$25	$—	$25	Other charges/(income), net
Fair Value
Interest rate swaps	—	(4)	—	6	Interest expense
Total forward contracts and interest rate swaps	$—	$21	$—	$31
Net Investment
Cross currency swaps	($11)	$7	$49	$7	Interest expense
Foreign denominated debt	(51)	—	140	—
Total Net Investment	($62)	$7	$189	$7

Fair Value Measurements

The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of June 30, 2023 and December 31, 2022, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 14, "Employee Benefit Plans" under Item 8 in the 2022 Form 10-K for further details). The Company's financial assets and liabilities are measured using inputs from the following three levels:

Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges.

Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments' contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves.

Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company did not have any recurring financial assets or liabilities recorded in its condensed consolidated balance sheet as of June 30, 2023 and December 31, 2022 that were measured using Level 3 inputs.

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Assets and liabilities reported at fair value on a recurring basis

	June 30, 2023			December 31, 2022
($ in millions)	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Assets:
Other current assets:
Marketable equity securities	$9	$—	$—	$9	$—	$—
Foreign currency forward contracts (a)	$—	$9	$—	$—	$27	$—
Cross currency swaps (b)	$—	$—	$—	$—	$39	$—
Investments:
Marketable equity securities	$72	$—	$—	$61	$—	$—
Other assets:
Cross currency swaps (b)	$—	$38	$—	$—	$49	$—
Liabilities:
Accounts payable and accrued liabilities:
Foreign currency forward contracts (a)	$—	$4	$—	$—	$3	$—
Interest rate swaps (c)	$—	$—	$—	$—	$1	$—
Other liabilities:
Interest rate swaps (c)	$—	$22	$—	$—	$19	$—

(a)Derivatives not designated as hedging instruments

(b)Net investment hedges

(c)Fair value hedges

Long-Term Debt

($ in millions)	June 30, 2023 (a)	December 31, 2022 (b)
Long-term debt - carrying value	$6,892	$6,796
Long-term debt - fair value	$6,492	$6,375

(a)Excludes finance lease obligations of $9 million and short-term borrowings of $7 million as of June 30, 2023.

(b)Excludes finance lease obligations of $10 million and short-term borrowings of $10 million as of December 31, 2022.

The fair values of the debt instruments were measured using Level 2 inputs, including discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities.

13.    Stock-Based Compensation

The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return ("TSR"). All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016.

Stock-based compensation expense and the associated income tax benefit recognized during the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Stock-based compensation expense	$17	$12	$34	$18
Income tax benefit recognized	$3	$3	$7	$4

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Grants of stock-based compensation during the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30
	2023		2022
	Shares	Fair Value	Shares	Fair Value
Stock options	410,001	$38.55	487,277	$36.52
Restricted stock units	276,897	$125.49	211,914	$142.17
Contingent shares (a)	52,389	$129.03	57,134	$151.87

(a)The number of contingent shares represents the target value of the award.

Stock options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant. The fair value of the stock options granted during the six months ended June 30, 2023 was calculated with the following weighted average assumptions:

Weighted average exercise price	$130.08
Risk-free interest rate	3.9	%
Expected life of option in years	6.5
Expected dividend yield	1.7	%
Expected volatility	27.8	%

The risk-free interest rate is determined by using the U.S. Treasury yield curve at the date of the grant and using a maturity equal to the expected life of the option. The expected life of options is calculated using the average of the vesting term and the maximum term, as prescribed by accounting guidance on the use of the simplified method for determining the expected term of an employee share option. The expected dividend yield and volatility are based on historical stock prices and dividend amounts over past time periods equal in length to the expected life of the options.

Time-based RSUs generally vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the vesting period. Performance-based RSUs vest based on achieving specific annual performance targets for adjusted earnings per diluted share growth and cash flow return on capital over the three calendar year-end periods following the date of grant. Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the three-year performance period if PPG meets the performance targets.

The amount paid upon vesting of performance-based RSUs may range from 0% to 200% of the original grant, based upon the level of adjusted earnings per share growth achieved and frequency with which the annual cash flow return on capital performance target is met over the three calendar year periods comprising the vesting period. Performance against the earnings per share growth and the cash flow return on capital target is calculated annually, and the annual payout for each goal is weighted equally over the three-year period.

The Company also provides grants of contingent shares to selected key executives that may be earned based on PPG's TSR over the three-year period following the date of grant. Contingent share grants (referred to as “TSR awards”) are made annually and are paid out at the end of each three-year period based on the Company’s stock performance. Performance is measured by determining the percentile rank of the TSR of PPG common stock in relation to the TSR of the S&P 500 Index for the three-year period following the date of grant. This comparison group represents the entire S&P 500 Index as it existed at the beginning of the performance period, excluding any companies that were removed from the index because they ceased to be publicly traded. The payment of awards following the three-year award period is based on performance achieved in accordance with the scale set forth in the plan agreement and may range from 0% to 200% of the initial grant. A payout of 100% is earned if target performance is achieved. Contingent share awards earn dividend equivalents for the award period, which are paid to participants or credited to the participants’ deferred compensation plan accounts with the award payout at the end of the period based on the actual number of contingent shares that are earned. Any payments made at the end of the award period may be in the form of stock, cash or a combination of both. The TSR awards are classified as liability awards, and compensation expense is recognized over the three-year award period based on the fair value of the awards (giving consideration to the Company’s percentile rank of TSR) remeasured in each reporting period until settlement of the awards.

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14.    Commitments and Contingent Liabilities

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, antitrust, employment and other matters arising out of the conduct of PPG’s current and past business activities. To the extent that these lawsuits and claims involve personal injury, property damage and certain other claims, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers may contest coverage with respect to some of the claims in the future. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters.

The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.

Asbestos Matters

As of June 30, 2023, the Company was aware of certain asbestos-related claims pending against the Company and certain of its subsidiaries. The Company is defending these asbestos-related claims vigorously. The asbestos-related claims consist of claims against the Company alleging:

•exposure to asbestos or asbestos-containing products manufactured, sold or distributed by the Company or its subsidiaries (“Products Claims”);

•personal injury caused by asbestos on premises presently or formerly owned, leased or occupied by the Company (“Premises Claims”); and

•asbestos-related claims against a subsidiary the Company acquired in 2013 (“Subsidiary Claims”).

The Company monitors and reviews the activity associated with its asbestos claims and evaluates, on a periodic basis, its estimated liability for such claims and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required. Additionally, as a supplement to its periodic monitoring and review, the Company conducts discussions with counsel and engages valuation consultants to analyze its claims history and estimate the amount of the Company’s potential liability for asbestos-related claims. The Company's asbestos-related reserves totaled $49 million and $51 million as of June 30, 2023 and December 31, 2022, respectively.

The Company believes that, based on presently available information, the total reserves of $49 million for asbestos-related claims will be sufficient to encompass all of the Company’s current and estimable potential future asbestos liabilities. These reserves, which are included within Other liabilities on the accompanying consolidated balance sheets, involve significant management judgment and represent the Company’s current best estimate of its liability for these claims.

The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) whether closed, dismissed or dormant claims are reinstituted, reinstated or revived; (iii) the amounts required to resolve both currently known and future unknown claims; (iv) the amount of insurance, if any, available to cover such claims; (v) the unpredictable aspects of the tort system, including a changing trial docket and the jurisdictions in which trials are scheduled; (vi) the outcome of any trials, including potential judgments or jury verdicts; (vii) the lack of specific information in many cases concerning exposure for which the Company is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (viii) potential changes in applicable federal and/or state tort liability law. All of these factors may have a material effect upon future asbestos-related liability estimates. While the ultimate outcome of the Company’s asbestos litigation cannot be predicted with certainty, the Company believes that any financial exposure resulting from its asbestos-related claims will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.

Environmental Matters

In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time.

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As remediation at certain environmental sites progresses, PPG continues to refine its assumptions underlying the estimates of the expected future costs of its remediation programs. PPG’s ongoing evaluation may result in additional charges against income to adjust the reserves for these sites. In 2023 and 2022, certain charges have been recorded based on updated estimates to increase existing reserves for these sites. Certain other charges related to environmental remediation actions are expensed as incurred.

As of June 30, 2023 and December 31, 2022, PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, New Jersey (“New Jersey Chrome”), glass and chemical manufacturing sites, and for other environmental contingencies, including current manufacturing locations and National Priority List sites. These reserves are reported as Accounts payable and accrued liabilities and Other liabilities in the accompanying condensed consolidated balance sheet.

Environmental Reserves
($ in millions)	June 30, 2023	December 31, 2022
New Jersey Chrome	$50	$58
Glass and chemical	60	60
Other	105	99
Total	$215	$217
Current portion	$57	$50

Pretax charges against income for environmental remediation costs are included in Other charges/(income), net in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Environmental remediation pretax charges	$10	$2	$13	$8
Cash outlays for environmental remediation activities	$7	$24	$16	$47

Remediation: New Jersey Chrome

In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Judicial Consent Order (the "JCO"). Under the JCO, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and a number of additional surrounding sites. Remediation of the New Jersey Chrome sites requires PPG to remediate soil and groundwater contaminated by hexavalent chromium, as well as perform certain other environmental remediation activities. The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites relate to the extent and concentration of chromium in the soil.

PPG regularly evaluates the assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils, percentage of hazardous versus non-hazardous soils, daily soil excavation rates, and engineering, administrative and other associated costs. Based on these assessments, the reserve is adjusted accordingly. As of June 30, 2023 and December 31, 2022, PPG's reserve for remediation of all New Jersey Chrome sites was $50 million and $58 million, respectively. The major cost components of this liability are related to excavation of impacted soil, as well as groundwater remediation. These components each account for approximately 70% and 10% of the amount accrued at June 30, 2023, respectively.

There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and applicable governmental agency or community organization approvals. Considerable uncertainty exists regarding the timing of these future events for the New Jersey Chrome sites. Further resolution of these events is expected to occur over the next several years. As these events occur and to the extent that the cost estimates of the environmental remediation remedies change, the existing reserve for this environmental remediation matter will continue to be adjusted.

Remediation: Glass, Chemicals and Other Sites

Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a chemical manufacturing site in Barberton, Ohio where PPG has completed a Facility Investigation and Corrective Measure

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Study under the United States Environmental Protection Agency's Resource Conservation and Recovery Act Corrective Action Program. PPG has also been addressing the impacts from a legacy plate glass manufacturing site in Kokomo, Indiana under the Voluntary Remediation Program of the Indiana Department of Environmental Management and a site associated with a legacy plate glass manufacturing site near Ford City, Pennsylvania under the Pennsylvania Land Recycling Program under the oversight of the Pennsylvania Department of Environmental Protection. PPG is currently performing additional investigation and remedial activities at these locations.

With respect to certain other waste sites, the financial condition of other potentially responsible parties also contributes to the uncertainty of estimating PPG’s final costs. Although contributors of waste to sites involving other potentially responsible parties may face governmental agency assertions of joint and several liability, in general, final allocations of costs are made based on the relative contributions of wastes to such sites. PPG is generally not a major contributor to such sites.

Remediation: Reasonably Possible Matters

In addition to the amounts currently reserved for environmental remediation, the Company may be subject to loss contingencies related to environmental matters estimated to be as much as $100 million to $200 million. Such unreserved losses are reasonably possible but are not currently considered to be probable of occurrence. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant. The loss contingencies related to these sites include significant unresolved issues such as the nature and extent of contamination at these sites and the methods that may have to be employed to remediate them.

The impact of evolving programs, such as natural resource damage claims, industrial site re-use initiatives and domestic and international remediation programs, also adds to the present uncertainties with regard to the ultimate resolution of this unreserved exposure to future loss. The Company’s assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments.

15.    Revenue Recognition

The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. 

The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations.

The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the three and six months ended June 30, 2023 and 2022, service revenue constituted less than 5% of total revenue.

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Net sales by segment and region for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Performance Coatings
United States and Canada	$1,397	$1,329	$2,520	$2,392
Europe, Middle East and Africa ("EMEA")	990	994	1,890	1,943
Asia Pacific	291	287	547	561
Latin America	363	319	712	603
Total	$3,041	$2,929	$5,669	$5,499
Industrial Coatings
United States and Canada	$662	$686	$1,315	$1,338
EMEA	530	503	1,058	1,007
Asia Pacific	445	402	836	825
Latin America	194	171	374	330
Total	$1,831	$1,762	$3,583	$3,500
Total Net Sales
United States and Canada	$2,059	$2,015	$3,835	$3,730
EMEA	1,520	1,497	2,948	2,950
Asia Pacific	736	689	1,383	1,386
Latin America	557	490	1,086	933
Total PPG	$4,872	$4,691	$9,252	$8,999

Allowance for Doubtful Accounts

All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for doubtful accounts and any charge-offs. PPG provides an allowance for doubtful accounts to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators including, but not limited to, regional business environment risk, political risk, and commercial and financing risks.

PPG reviews its allowance for doubtful accounts on a quarterly basis to ensure the estimate reflects regional risk trends as well as current and future global operating conditions.

The following table summarizes allowance for doubtful accounts activity for the six months ended June 30, 2023 and 2022:

	Trade Receivables Allowance for Doubtful Accounts
($ in millions)	2023	2022
January 1	$31	$31
Bad debt expense	6	45
Recoveries of previously reserved trade receivables	(7)	(44)
Other	(2)	7
June 30	$28	$39

In the first quarter 2022, PPG recorded a bad debt reserve of $43 million associated with the adverse economic impacts of the Russian invasion of Ukraine. During the second quarter 2022, the Company released a portion of this previously established reserve due to the collection of certain trade receivables. Refer to Note 7, "Impairment and Other Related (Income)/Charges, Net" for additional information.

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16.    Reportable Business Segment Information

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 original equipment manufacturer ("OEM") coatings, industrial coatings, packaging coatings and 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.

Reportable business segment net sales and segment income for the three and six months ended June 30, 2023 and 2022 were as follows: 

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Net sales:
Performance Coatings	$3,041	$2,929	$5,669	$5,499
Industrial Coatings	1,831	1,762	3,583	3,500
Total	$4,872	$4,691	$9,252	$8,999
Segment income:
Performance Coatings	$537	$446	$932	$765
Industrial Coatings	250	156	490	296
Total	$787	$602	$1,422	$1,061
Corporate	(85)	(55)	(152)	(107)
Interest expense, net of interest income	(35)	(27)	(69)	(48)
Pension settlement charge (a)	—	—	(190)	—
Insurance recovery of expenses incurred due to a natural disaster (b)	—	—	9	—
Impairment and other related income/(charges), net (c)	—	60	—	(230)
Business restructuring-related costs, net (d)	(14)	(8)	(14)	(22)
Transaction-related costs (e)	(7)	(6)	(7)	(10)
Income before income taxes	$646	$566	$999	$644

(a)In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in the U.S. to third-party insurance companies, resulting in a non-cash pension settlement charge.

(b)The Company incurred expenses due to damages at a southern U.S. factory resulting from a hurricane in 2020. In the first quarter 2023, the Company received reimbursement under its insurance policies related to the damages incurred at this factory due to this hurricane.

(c)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. In the second quarter 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories.

(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.

(e)Transaction-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. Transaction-related costs also include losses on the sale of certain assets, which are included in Other charges/(income), net in the condensed consolidated statement of income, and 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.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and the notes thereto included in the condensed consolidated financial statements in Part I, Item 1, “Financial Statements,” of this report and in conjunction with the 2022 Form 10-K.

Highlights

Net sales were approximately $4.9 billion for the three months ended June 30, 2023, an increase of 3.9% compared to the prior year, driven by higher selling prices. The Company increased net sales despite lower sales volumes, which were unfavorably impacted by lower absolute levels of demand in Europe stemming from geopolitical issues, slower economic recovery in China, lower do-it-yourself ("DIY") paint demand in most regions and softening global manufacturing activity.

Income before income taxes was $646 million for the three months ended June 30, 2023, an increase of $80 million compared to the prior year. This increase was primarily due to selling price increases partially offset by lower sales volumes.

Results of Operations

	Three Months Ended June 30		Percent Change		Six Months Ended June 30		Percent Change
($ in millions, except percentages)	2023	2022	2023 vs. 2022		2023	2022	2023 vs. 2022
Net sales	$4,872	$4,691	3.9	%	$9,252	$8,999	2.8	%
Cost of sales, exclusive of depreciation and amortization	$2,866	$2,954	(3.0)	%	$5,462	$5,652	(3.4)	%
Selling, general and administrative	$1,069	$982	8.9	%	$2,061	$1,956	5.4	%
Depreciation	$93	$99	(6.1)	%	$185	$201	(8.0)	%
Amortization	$40	$42	(4.8)	%	$81	$85	(4.7)	%
Research and development, net	$110	$115	(4.3)	%	$214	$230	(7.0)	%
Interest expense	$67	$38	76.3	%	$126	$68	85.3	%
Interest income	($32)	($11)	190.9	%	($57)	($20)	185.0	%
Impairment and other related (income)/charges, net	$—	($60)	(100.0)	%	—	$230	(100.0)	%
Pension settlement charge	$—	$—	—	%	$190	$—	100.0	%
Other charges/(income), net	$13	($34)	(138.2)	%	($9)	($47)	(80.9)	%

Net Sales by Region

	Three Months Ended June 30		Percent Change		Six Months Ended June 30		Percent Change
($ in millions, except percentages)	2023	2022	2023 vs. 2022		2023	2022	2023 vs. 2022
United States and Canada	$2,059	$2,015	2.2	%	$3,835	$3,730	2.8	%
EMEA	1,520	1,497	1.5	%	2,948	2,950	(0.1)	%
Asia Pacific	736	689	6.8	%	1,383	1,386	(0.2)	%
Latin America	557	490	13.7	%	1,086	933	16.4	%
Total	$4,872	$4,691	3.9	%	$9,252	$8,999	2.8	%

Three Months Ended June 30, 2023

Net sales increased $181 million due to the following:

● Higher selling prices (+6%)

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Partially offset by:

● Lower sales volumes (-2%)

For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.

Cost of sales, exclusive of depreciation and amortization, decreased $88 million primarily due to lower sales volumes and moderating raw material costs.

Selling, general and administrative expense increased $87 million primarily due to wage and other cost inflation and increased performance-based incentive compensation expense, partially offset by savings from previously approved restructuring actions.

Interest expense increased $29 million primarily due to the unfavorable impact of higher interest rates on PPG’s variable rate debt obligations. Interest income increased $21 million primarily due to higher interest rates.

Impairment and other related charges of $290 million were recorded in the first quarter 2022 associated with the wind down of the Company's operations in Russia. In the second quarter 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories, resulting in recognition of income of $60 million. Refer to Note 7, "Impairment and Other Related (Income)/Charges, Net" in Part I, Item 1 of this Form 10-Q for additional information. There were no impairment charges recorded during the second quarter 2023.

Six Months Ended June 30, 2023

Net sales increased $253 million due to the following:

● Higher selling prices (+7%)

● Acquisition-related sales (+1%)

Partially offset by:

● Lower sales volumes (-3%)

● Unfavorable foreign currency translation (-1%)

● Divestiture-related sales and wind down of Russia operations (-1%)

For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.

Cost of sales, exclusive of depreciation and amortization, decreased $190 million primarily due to lower sales volumes and moderating raw material costs.

Selling, general and administrative expense increased $105 million primarily due to wage and other cost inflation and increased performance-based incentive compensation expense, partially offset by savings from previously approved restructuring actions and favorable foreign currency translation impacts.

Interest expense increased $58 million primarily due to the unfavorable impact of higher interest rates on PPG’s variable rate debt obligations. Interest income increased $37 million primarily due to higher interest rates.

Impairment and other related charges of $290 million were recorded in the first quarter 2022 associated with the wind down of the Company's operations in Russia. In the second quarter 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories, resulting in recognition of income of $60 million. Refer to Note 7, "Impairment and Other Related (Income)/Charges, Net" in Part I, Item 1 of this Form 10-Q for additional information. There were no impairment charges recorded during 2023.

A pension settlement charge of $190 million was recorded in the first quarter 2023 associated with the Company's purchase of group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in the U.S. to third-party insurance companies. Refer to Note 10, "Pensions and Other Postretirement Benefits" in Part I, Item 1 of this Form 10-Q for additional information.

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Effective Tax Rate and Earnings Per Diluted Share

	Three Months Ended June 30				Percent Change		Six Months Ended June 30				Percent Change
($ in millions, except percentages and amounts per share)	2023		2022		2023 vs. 2022		2023		2022		2023 vs. 2022
Income tax expense	$149		$118		26.3	%	$229		$173		32.4	%
Effective tax rate	23.1	%	20.8	%	2.3	%	22.9	%	26.9	%	(4.0)	%
Adjusted effective tax rate, continuing operations*	23.2	%	22.6	%	0.6	%	23.2	%	22.6	%	0.6	%
Earnings per diluted share, continuing operations	$2.06		$1.86		10.8	%	$3.18		$1.94		63.9	%
Adjusted earnings per diluted share*	$2.25		$1.81		24.3	%	$4.08		$3.18		28.3	%
*See Regulation G Reconciliation below

The effective tax rate of 26.9% for the six months ended June 30, 2022 reflected a tax benefit of $27 million on the $230 million Impairment and other related (income)/charges, net associated with PPG's operations in Russia.

Adjusted earnings per diluted share for the three and six months ended June 30, 2023 increased year-over-year primarily due to increased selling prices and moderating raw material costs, partially offset by lower sales volumes.

Regulation G Reconciliations - Results from Operations

PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, PPG’s effective tax rate and segment income adjusted for certain items. PPG’s management considers this information useful in providing insight into the Company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate and segment income adjusted for these items are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share and the adjusted effective tax rate may not be comparable to similarly titled measures as reported by other companies.

Income before income taxes from continuing operations is reconciled to adjusted income before income taxes from continuing operations, the effective tax rate from continuing operations is reconciled to the adjusted effective tax rate from continuing operations and net income from continuing operations (attributable to PPG) and earnings per share – assuming dilution (attributable to PPG) are reconciled to adjusted net income from continuing operations (attributable to PPG) and adjusted earnings per share – assuming dilution below.

	Three Months Ended June 30, 2023
($ in millions, except percentages and per share amounts)	Income Before Income Taxes	Income Tax Expense	Effective Tax Rate		Net Income (attributable to PPG)	Earnings Per Diluted Share(a)
As reported, continuing operations	$646	$149	23.1	%	$490	$2.06
Adjusted for:
Acquisition-related amortization expense	40	10	24.6	%	30	0.13
Business restructuring-related costs, net (b)	14	3	24.0	%	11	0.05
Transaction-related costs (c)	7	2	24.3	%	3	0.01
Adjusted, continuing operations, excluding certain items	$707	$164	23.2	%	$534	$2.25

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	Three Months Ended June 30, 2022
($ in millions, except percentages and per share amounts)	Income Before Income Taxes	Income Tax Expense	Effective Tax Rate		Net Income (attributable to PPG)	Earnings Per Diluted Share(a)
As reported, continuing operations	$566	$118	20.8	%	$443	$1.86
Adjusted for:
Acquisition-related amortization expense	42	10	24.6	%	32	0.13
Business restructuring-related costs, net (b)	8	2	25.7	%	6	0.03
Transaction-related costs (c)	6	(3)	(50.0	%)	9	0.04
Impairment and other related (income)/charges, net (d)	(60)	—	—	%	(60)	(0.25)
Adjusted, continuing operations, excluding certain items	$562	$127	22.6	%	$430	$1.81

	Six Months Ended June 30, 2023
($ in millions, except percentages and per share amounts)	Income Before Income Taxes	Tax Expense	Effective Tax Rate		Net Income (attributable to PPG)	Earnings per Diluted share(a)
As reported, continuing operations	$999	$229	22.9	%	$754	$3.18
Adjusted for:
Pension settlement charge (e)	190	46	24.3	%	144	0.61
Acquisition-related amortization expense	81	20	24.6	%	61	0.26
Business restructuring-related costs, net (b)	14	3	24.0	%	11	0.05
Transaction-related costs (c)	7	2	24.3	%	3	0.01
Insurance recovery of expenses incurred due to a natural disaster (f)	(9)	(2)	24.3	%	(7)	(0.03)
Adjusted, continuing operations, excluding certain items	$1,282	$298	23.2	%	$966	$4.08

	Six Months Ended June 30, 2022
($ in millions, except percentages and per share amounts)	Income Before Income Taxes	Tax Expense	Effective Tax Rate		Net Income (attributable to PPG)	Earnings per Diluted share(a)
As reported, continuing operations	$644	$173	26.9	%	$461	$1.94
Adjusted for:
Impairment and other related (income)/charges, net (d)	230	27	11.7	%	203	0.85
Acquisition-related amortization expense	85	20	23.5	%	65	0.27
Business restructuring-related costs, net (b)	22	6	27.3	%	16	0.07
Transaction-related costs (c)	10	(2)	(20.0)	%	12	0.05
Adjusted, continuing operations, excluding certain items	$991	$224	22.6	%	$757	$3.18

(a)Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.

(b)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.

(c)Transaction-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. Transaction-related costs also include losses on the sale of certain assets, which are included in Other charges/(income), net in the condensed consolidated statement of income, and 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. In 2023, net loss of $2 million was attributable to noncontrolling interests.

(d)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. In the second quarter 2022, 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.

(e)In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in the U.S. to third-party insurance companies, resulting in a non-cash pension settlement charge.

(f)The Company incurred expenses due to damages at a southern U.S. factory resulting from a hurricane in 2020. In the first quarter 2023, the Company received reimbursement under its insurance policies related to the damages incurred at this factory due to this hurricane.

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Performance of Reportable Business Segments

Performance Coatings

	Three Months Ended June 30		$ Change	% Change		Six Months Ended June 30		$ Change	% Change
($ in millions, except percentages)	2023	2022	2023 vs. 2022	2023 vs. 2022		2023	2022	2023 vs. 2022	2023 vs. 2022
Net sales	$3,041	$2,929	$112	3.8	%	$5,669	$5,499	$170	3.1	%
Segment income	$537	$446	$91	20.4	%	$932	$765	$167	21.8	%
Amortization expense	$28	$31	($3)	(9.7)	%	$58	$63	($5)	(7.9)	%
Segment income, excluding amortization expense	$565	$477	$88	18.4	%	$990	$828	$162	19.6	%

Three Months Ended June 30, 2023

Performance Coatings net sales increased due to the following:

● Higher selling prices (+6%)

● Favorable foreign currency translation (+1%)

Partially offset by:

● Lower sales volumes (-3%)

Architectural coatings – EMEA net sales, excluding the impact of currency, acquisitions, divestitures and the wind down of Russia operations ("organic sales") decreased by a low single-digit percentage as selling price increases were more than offset by lower sales volumes. Demand for architectural products in many countries decreased year over year primarily stemming from lower consumer confidence due to continued geopolitical issues in Europe.

Architectural coatings - Americas and Asia Pacific organic sales increased by a low single-digit percentage. Positive organic sales growth in Mexico was partially offset by lower demand in the U.S. and Canada. In Mexico, PPG Comex architectural coatings organic sales increased compared to the prior year as concessionaire network demand continued to be strong and further selling price increases were implemented.

Automotive refinish coatings organic sales were higher by a mid-single-digit percentage as selling price increases were seen across all regions. Demand at U.S. collision body shops remained strong.

Aerospace coatings sales volumes increased by a low teen-percentage as demand was strong in all regions. Sales also increased due to the benefit of higher selling prices.

Protective and marine coatings organic sales increased by a high single-digit percentage primarily due to selling price increases and higher sales volumes in most regions. Sales volumes during the prior year second quarter were negatively impacted by COVID-19 restrictions in China.

Traffic solutions organic sales decreased by a low single-digit percentage primarily due to lower sales volumes. In the U.S., the business prioritized higher margin business, resulting in lower sales volumes.

Segment income increased $91 million year over year primarily due to higher selling prices and moderating raw material costs, which more than offset lower sales volumes.

Six Months Ended June 30, 2023

Performance Coatings net sales increased due to the following:

● Higher selling prices (+8%)

Partially offset by:

● Lower sales volumes (-3%)

● Unfavorable foreign currency translation (-1%)

● Divestiture-related sales and wind down of Russia operations (-1%)

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Architectural coatings – EMEA organic decreased by a low single-digit percentage year over year as selling price increases were more than offset by lower sales volumes. Demand for architectural products in many countries decreased year over year primarily stemming from reduced remodeling activity and lower consumer confidence due to continued geopolitical issues in Europe.

Architectural coatings - Americas and Asia Pacific organic sales increased by a mid-single-digit percentage. Sales volumes in the U.S. were favorably impacted by new business wins in the first quarter but were negatively impacted by lower DIY paint demand throughout the first six months of 2023. In Mexico, PPG Comex architectural coatings organic sales increased compared to the prior year driven by selling price increases and continued strong demand in the concessionaire network.

Automotive refinish coatings organic sales increased by a low single-digit percentage year over year as selling price increases in all regions more than offset by lower sales volumes. Net sales benefited from strong sales volumes in the U.S. in the second quarter despite lower insurance claim activity compared to the second quarter 2022.

Aerospace coatings sales volumes increased by a mid-teen percentage as demand was strong in most regions. Sales also increased due to the benefit of higher selling prices.

Protective and marine coatings organic sales increased by a high single-digit percentage primarily due to selling price increases in all regions and strong demand in the U.S. and Latin America.

Traffic solutions organic sales decreased by a mid-single-digit percentage as higher selling prices in all regions were more than offset by lower sales volumes.

Segment income increased $167 million year over year primarily due to higher selling prices and moderating raw material costs, which more than offset lower sales volumes.

Looking Ahead

In the third quarter, demand conditions in Europe are expected to stabilize at lower levels than before the war in Ukraine. Raw material and transportation availability are expected to normalize near pre-pandemic levels. Aggregate organic sales are anticipated to increase by a low-single-digit percentage compared to the third quarter 2022.

Industrial Coatings

	Three Months Ended June 30		$ Change	% Change		Six Months Ended June 30		$ Change	% Change
($ in millions, except percentages)	2023	2022	2023 vs. 2022	2023 vs. 2022		2023	2022	2023 vs. 2022	2023 vs. 2022
Net sales	$1,831	$1,762	$69	3.9	%	$3,583	$3,500	$83	2.4	%
Segment income	$250	$156	$94	60.3	%	$490	$296	$194	65.5	%
Amortization expense	$12	$11	$1	9.1	%	$23	$22	$1	4.5	%
Segment income, excluding amortization expense	$262	$167	$95	56.9	%	$513	$318	$195	61.3	%

Three Months Ended June 30, 2023

Industrial Coatings segment net sales increased due to the following:

● Higher selling prices (+5%)

● Acquisition-related sales (+1%)

Partially offset by:

● Lower sales volumes (-1%)

● Unfavorable foreign currency translation (-1%)

Automotive OEM coatings organic sales increased by a mid-teen percentage year over year driven by higher selling prices in all regions and strong sales volume growth in Europe and the U.S. While global industry growth rates have improved in the first half of 2023, they remain well below pre-pandemic levels.

In the industrial coatings business, organic sales decreased by a mid-single-digit percentage year over year as higher selling prices were more than offset by lower sales volumes in Europe and China due to softer general industrial production. Sales volumes in the U.S. were negatively impacted by lower demand in the coil, wood and general finishes subsegments.

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Packaging coatings organic sales decreased by a mid-single-digit percentage primarily due to lower sales volumes more than offsetting selling price increases. The decrease in sales volumes was driven by lower demand in all regions driven by broad demand weakness. On a year-over-year basis, global demand in the metal packaged food and beverage segment was lower, while demand for personal-care products was higher.

Specialty coatings and materials organic sales decreased by a high single-digit percentage primarily due to lower sales volumes, partially offset by higher selling prices.

Segment income increased $94 million year over year primarily due to higher selling prices and moderating raw material costs.

Six Months Ended June 30, 2023

Industrial Coatings segment net sales increased due to the following:

● Higher selling prices (+6%)

● Acquisition-related sales (+1%)

Partially offset by:

● Lower sales volumes (-2%)

● Unfavorable foreign currency translation (-2%)

● Divestiture-related sales and wind down of Russia operations (-1%)

Automotive OEM coatings organic sales increased by a low teen percentage year over year driven by higher selling prices and strong sales volume growth in all regions. While global industry growth rates have improved in the first half of 2023, they remain well below pre-pandemic levels.

In the industrial coatings business, organic sales decreased by a mid single-digit percentage year over year as higher selling prices were more than offset by lower sales volumes in most regions due to softening global industrial demand.

Packaging coatings organic sales decreased by a low single-digit percentage year over year as selling price increases were offset by lower sales volumes in all regions driven by broad demand weakness.

Specialty coatings and materials organic sales decreased by a mid-single-digit percentage primarily due to lower sales volumes, partially offset by higher selling prices.

Segment income increased $194 million year over year primarily due to higher selling prices and moderating raw material costs, which more than offset lower sales volumes.

Looking Ahead

In the third quarter, global industrial production is expected to remain at lower levels, with modest sequential improvement in China. Aggregate organic sales are anticipated to decrease by a low single-digit percentage compared to the third quarter 2022. While automotive industry build rates and retail activity is expected to continue to be solid, other industrial production end-use markets are expected to be soft, including the industrial coatings, packaging coatings, and specialty coatings and materials businesses. Positive selling price increases are expected to continue; although, some of the pricing gains realized in 2022 will begin to reach their anniversary in the third quarter.

Liquidity and Capital Resources

PPG had cash and short-term investments totaling $1.3 billion and $1.2 billion at June 30, 2023 and December 31, 2022, respectively.

The Company continues to believe that cash on hand and short-term investments, cash from operations and the Company's access to capital markets will be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans and PPG's contractual obligations.

Cash from/(used for) operating activities

Cash from operating activities for the six months ended June 30, 2023 was $621 million. Cash used for operating activities for the six months ended June 30, 2022 was $136 million. The $757 million increase was primarily due to higher net income driven by higher selling prices and favorable changes in working capital compared to the prior year.

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Operating Working Capital

Operating working capital is a subset of total working capital and represents (1) trade receivables – net of the allowance for doubtful accounts (2) FIFO inventories and (3) trade liabilities. We believe operating working capital represents the key components of working capital under the operating control of our businesses. A key metric we use to measure our working capital management is operating working capital as a percentage of sales (current quarter sales annualized).

($ in millions, except percentages)	June 30, 2023		December 31, 2022		June 30, 2022
Trade receivables, net	$3,426		$2,824		$3,306
Inventories, FIFO	2,776		2,544		2,715
Trade creditors’ liabilities	2,717		2,538		2,940
Operating working capital	$3,485		$2,830		$3,081
Operating working capital as a % of sales	17.9	%	16.9	%	16.4	%
Days sales outstanding	57		56		58

Environmental

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Cash outlays for environmental remediation activities	$7	$24	$16	$47

($ in millions)	Remainder of 2023	Annually 2024 - 2027
Projected future cash outlays for environmental remediation activities	$20 - $40	$20 - $75

Cash used for investing activities

Cash used for investing activities for the six months ended June 30, 2023 and 2022 was $290 million and $150 million, respectively. The $140 million increase in cash used for investing activities was primarily due to higher spending on business acquisitions and the absence of proceeds from asset sales recognized during the six months ended June 30, 2022.

Total capital spending is expected to be in the range of $500 million to $550 million in 2023 in support of future organic growth opportunities.

Cash (used for)/from financing activities

Cash used for financing activities for the six months ended June 30, 2023 was $266 million. Cash from financing activities for the six months ended June 30, 2022 was $213 million. The $479 million change was primarily due to repayments of long-term debt, repayment of the Term Loan Credit Agreement and lower proceeds from the issuance of debt, partially offset by higher net proceeds from commercial paper.

Credit Agreements

In April 2023, PPG entered into a €500 million Term Loan Credit Agreement (the "Term Loan"). The Term Loan provides the Company with the ability to increase the size of the loan by an amount not to exceed €250 million. The Term Loan contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Term Loan terminates and all amounts outstanding are payable in April 2026. In April 2023, PPG borrowed €500 million under the Term Loan.

In February 2021, PPG entered into a $2.0 billion Term Loan Credit Agreement (the "Term Loan Credit Agreement") to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. The Term Loan Credit Agreement provided the Company with the ability to borrow up to an aggregate principal amount of $2.0 billion on an unsecured basis. In addition to the amounts borrowed to finance the acquisition of Tikkurila, the Term Loan Credit Agreement allowed the Company to make up to eleven additional borrowings prior to December 31, 2021, to be used for working capital and general corporate purposes. The Term Loan Credit Agreement contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary

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restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Term Loan Credit Agreement matures and all outstanding borrowings are due and payable on the third anniversary of the date of the initial borrowing under the Agreement. In March 2023, PPG amended the Term Loan Credit Agreement to replace the LIBOR-based reference interest rate option with a reference interest rate option based upon Term Secured Overnight Financing Rate ("SOFR"). The other terms of the Term Loan Credit Agreement remain unchanged. In June 2021, PPG borrowed $700 million under the Term Loan Credit Agreement to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. In December 2021, PPG borrowed an additional $700 million under the Term Loan Credit Agreement. In 2022, PPG repaid $300 million of the Term Loan Credit Agreement using cash on hand. In the first quarter 2023, PPG repaid $100 million of the Term Loan Credit Agreement using cash on hand. In the second quarter 2023, PPG repaid $200 million of the Term Loan Credit Agreement using cash on hand. Borrowings of $800 million and $1.1 billion were outstanding under the Term Loan Credit Agreement as of June 30, 2023 and December 31, 2022, respectively.

In March 2023, PPG amended its five-year credit agreement (the “Credit Agreement”) dated as of August 30, 2019. The amendments to the Credit Agreement replace the LIBOR-based reference interest rate option with a reference interest rate option based upon Term SOFR. The other terms of the Credit Agreement remain unchanged. The Credit Agreement provides for a $2.2 billion unsecured revolving credit facility. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions precedent. The Credit Agreement will terminate on August 30, 2024. The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain subsidiaries of the Company as borrowers under the Credit Agreement. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of June 30, 2023 and December 31, 2022.

The Term Loan, Term Loan Credit Agreement and Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan, Term Loan Credit Agreement and Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of June 30, 2023, Total Indebtedness to Total Capitalization as defined under the Term Loan, Term Loan Credit Agreement and Credit Agreement was 46%.

The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. There were $100 million commercial paper borrowings outstanding as of June 30, 2023. There no commercial paper borrowings outstanding as of December 31, 2022.

Other Debt Issued and Repaid

In March 2023, PPG's $300 million 3.2% notes matured, and the Company repaid this obligation using cash on hand. Refer to Note 6, “Borrowings” in Part I, Item 1 of this Form 10-Q for additional information.

In May 2022, PPG completed a public offering of €300 million 1.875% Notes due 2025 and €700 million 2.750% Notes due 2029. Refer to Note 6, “Borrowings” in Part I, Item 1 of this Form 10-Q for additional information.

In March 2022, PPG privately placed a 15-year €50 million 1.95% fixed interest note. Refer to Note 6, “Borrowings” in Part I, Item 1 of this Form 10-Q for additional information.

Other Liquidity Information

Restructuring

Aggregate restructuring savings, including the impact of acquisition synergies, were approximately $15 million in the second quarter 2023. Total restructuring savings are expected to be at least $60 million in 2023. In addition, the Company continues to review its cost structure to identify additional cost savings opportunities. Refer to Note 5, “Business Restructuring” in Part I, Item 1 of this Form 10-Q for further details on the Company's business restructuring programs. We expect cash outlays related to these actions of approximately $100 million in 2023.

Currency

Comparing spot exchange rates at December 31, 2022 and at June 30, 2023, the U.S. dollar weakened against the currencies of many countries within the regions PPG operates, most notably the Mexican peso. The U.S. dollar strengthened against the Chinese yuan. As a result of the net weakening of the U.S. dollar, consolidated net assets at June 30, 2023 increased by $372 million compared to December 31, 2022.

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Comparing average exchange rates during the first six months of 2023 to those of the first six months of 2022, the U.S. dollar weakened against the Mexican peso. The U.S. dollar strengthened against the currencies of many countries where PPG operates, including many of the countries in the EMEA region. The net weakening of the U.S. dollar had a favorable impact on Income before income taxes for the six months ended June 30, 2023 of $1 million from the translation of these foreign earnings into U.S. dollars.

New Accounting Standards

Refer to Note 2, “New Accounting Standards” in Part I, Item 1 of this Form 10-Q for further details on recently issued accounting guidance.

Commitments and Contingent Liabilities, including Environmental Matters

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. See Part II, Item 1, “Legal Proceedings” of this Form 10-Q and Note 14, “Commitments and Contingent Liabilities” in Part I, Item 1 of this Form 10-Q for a description of certain of these lawsuits.

As discussed in Part II, Item 1 and Note 14, although the result of any future litigation of such lawsuits and claims is inherently unpredictable, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG, including asbestos-related claims, will not have a material effect on PPG’s consolidated financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.

As also discussed in Note 14, PPG has significant reserves for environmental contingencies. Refer to the Environmental Matters section of Note 14 for details of these reserves. It is PPG’s policy to accrue expenses for contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time.

Critical Accounting Estimates

Management has evaluated the accounting policies used in the preparation of the financial statements and related notes presented in this Form 10-Q and believes those policies to be reasonable and appropriate. We believe that the most critical accounting estimates made in the preparation of our financial statements are those related to accounting for contingencies, under which we accrue a loss when it is probable that a liability has been incurred and the amount can be reasonably estimated, and to accounting for pensions, other postretirement benefits, business combinations, goodwill and other identifiable intangible assets with indefinite lives because of the importance of management judgment in making the estimates necessary to apply these policies.

For a comprehensive discussion of the Company’s critical accounting estimates, see Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2022 Form 10-K. There were no material changes in the Company’s critical accounting estimates from the 2022 Form 10-K.

Forward-Looking Statements

Management’s Discussion and Analysis and other sections of this Quarterly Report contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” "looking ahead" and other expressions that indicate future events and trends. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward looking statement, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our reports to the Securities and Exchange Commission ("SEC"). Also, note the following cautionary statements.

Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors include statements related to the expected effects on our business of COVID-19, global economic conditions, geopolitical issues in Europe, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, the

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ability to recover margins, customer inventory levels, PPG inventory levels, our ability to maintain favorable supplier relationships and arrangements, the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of our acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, the amount of future share repurchases, economic and political conditions in the markets we serve, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, the unpredictability of existing and possible future litigation, including asbestos litigation, and government investigations. However, it is not possible to predict or identify all such factors.

Consequently, while the list of factors presented here and in the 2022 Form 10-K under Item 1A is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Consequences of material differences in the results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or income, business disruption, operational problems, financial loss, legal liability to third parties, other factors set forth in Item 1A of the 2022 Form 10-K and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Foreign Currency Risk

We conduct operations in many countries around the world. Our results of operations are subject to both currency transaction risk and currency translation risk. Certain foreign currency forward contracts outstanding during 2022 and 2021 served as a hedge of a portion of PPG’s exposure to foreign currency transaction risk. The fair value of these contracts was a net asset of $5 million and $24 million as of June 30, 2023 and December 31, 2022, respectively. The potential reduction in PPG's Income before income taxes resulting from the impact of adverse changes in exchange rates on the fair value of its outstanding foreign currency hedge contracts of 10% for European and Canadian currencies and 20% for Asian and Latin American currencies was $332 million for the three months ended June 30, 2023 and $304 million for the year ended December 31, 2022.

PPG had U.S. dollar to euro cross currency swap contracts with a total notional amount of $475 million and $775 million as of June 30, 2023 and December 31, 2022, respectively. The fair value of these contracts were net assets of $38 million and $88 million as of June 30, 2023 and December 31, 2022, respectively. A 10% increase in the value of the euro to the U.S. dollar would have had an unfavorable effect on the fair value of these swap contracts by reducing the value of these instruments by $45 million and $73 million at June 30, 2023 and December 31, 2022, respectively.

As of June 30, 2023 and December 31, 2022, PPG had non-U.S. dollar denominated borrowings outstanding of $3.2 billion and $2.6 billion, respectively. A weakening of the U.S. dollar by 10% against European currencies and by 20% against Asian and South American currencies would have resulted in unrealized translation losses on these borrowings of $358 million at June 30, 2023 and $293 million at December 31, 2022.

Interest Rate Risk

The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to minimize its interest costs. PPG has interest rate swaps which converted $375 million and $525 million of fixed rate debt to variable rate debt as of June 30, 2023 and December 31, 2022, respectively. The fair values of these contracts was a liability of $22 million and $20 million as of June 30, 2023 and December 31, 2022, respectively. An increase in variable interest rates of 10% would have lowered the fair values of these swaps and increased interest expense by $6 million and $7 million for the periods ended June 30, 2023 and December 31, 2022, respectively. A 10% increase in interest rates in the U.S., Canada, Mexico and Europe and a 20% increase in interest rates in Asia and South America would have increased annual interest expense associated with PPG's variable rate debt obligations by $7 million and by $4 million for the periods ended June 30, 2023 and December 31, 2022, respectively. Further, a 10% reduction in interest rates would have increased the fair value of the Company's fixed rate debt by approximately $108 million and $116 million at June 30, 2023 and December 31, 2022, respectively; however, such changes would not have had an effect on PPG's Income before income taxes or cash flows.

There were no other material changes in the Company’s exposure to market risk from December 31, 2022 to June 30, 2023. Refer to Note 12, “Financial Instruments, Hedging Activities and Fair Value Measurements” in Part I, Item 1 of this Form 10-Q for a description of our instruments subject to market risk.

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Item 4. Controls and Procedures

a. Evaluation of disclosure controls and procedures. Based on their evaluation as of the end of the period covered by this Form 10-Q, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

b. Changes in internal control over financial reporting. There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, asbestos exposure, antitrust, employment, securities and other matters arising out of the conduct of PPG’s current and past business activities. To the extent these lawsuits and claims involve personal injury, property damage and certain other claims, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers may contest coverage. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters.

From the late 1880’s until the early 1970’s, PPG owned property located in Cadogan and North Buffalo Townships, Pennsylvania which was used for the disposal of solid waste from PPG’s former glass manufacturing facility in Ford City, Pennsylvania. In October 2018, the Pennsylvania Department of Environmental Protection (the “DEP”) approved PPG’s cleanup plan for the Cadogan Property. In April 2019, PPG and the DEP entered into a consent order and agreement (“CO&A”) which incorporated PPG’s approved cleanup plan and a draft final permit for the collection and discharge of seeps emanating from the former disposal area. The CO&A includes a civil penalty of $1.2 million for alleged past unauthorized discharges. PPG’s former disposal area is also the subject of a citizens’ suit filed by the Sierra Club and PennEnvironment seeking remedial measures beyond the measures specified in PPG’s approved cleanup plan, a civil penalty in addition to the penalty included in the CO&A and plaintiffs’ attorneys fees. PPG and the plaintiffs settled plaintiffs’ claims for injunctive relief and PPG agreed to enhancements to the DEP approved cleanup plan and a $250,000 donation to a Pennsylvania nonprofit organization. This settlement has been memorialized by an amendment to the CO&A which was appended to a Consent Agreement between PPG and the plaintiffs which has been entered by the federal court. The remaining claims in the case for attorneys’ fees and a civil penalty are not affected by this settlement. PPG believes that the remaining claims are without merit and intends to defend itself against these claims vigorously.

For many years, PPG has been a defendant in lawsuits involving claims alleging personal injury from exposure to asbestos. For a description of asbestos litigation affecting the Company, see Note 14, “Commitments and Contingent Liabilities” in Part I, Item 1 of this Form 10-Q.

In the past, the Company and others have been named as defendants in several cases in various jurisdictions claiming damages related to exposure to lead and remediation of lead-based coatings applications. PPG has been dismissed as a defendant from most of these lawsuits and has never been found liable in any of these cases. After having not been named in a new lead-related lawsuit for 15 years, PPG was named as a defendant in two Pennsylvania state court lawsuits filed by the Counties of Montgomery and Lehigh on October 4, 2018 and October 12, 2018, respectively. Both suits seek declaratory relief arising out of alleged public nuisances in the counties associated with the presence of lead paint on various buildings constructed prior to 1980. By Opinion and Order dated May 5, 2023, the Pennsylvania Commonwealth Court reversed both lower trial courts, unanimously ruling the Counties failed to plead valid causes of action, and remanding both cases to their respective trial courts for dismissal. On June 5, 2023, the Counties filed Petitions for Allowance of Appeal with the Pennsylvania Supreme Court. Acceptance of such Petitions is discretionary. The Company continues to believe these actions are without merit and intends to defend itself vigorously until the Counties have exhausted their appellate options.

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Item 1A. Risk Factors

There were no material changes in the Company’s risk factors from the risks disclosed in the 2022 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

No shares were repurchased in the three months ended June 30, 2023 under the current $2.5 billion share repurchase program approved in December 2017. The maximum number of shares that may yet be purchased under this program is 7,486,867 shares as of June 30, 2023. This repurchase program has no expiration date.

Item 6. Exhibits

See the Index to Exhibits on page 37.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Index to Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Form 10-Q.

10.1	Term Loan Credit Agreement, dated as of April 12, 2023, among PPG Industries, Inc., the banks, financial institutions and other institutional lenders party thereto and Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, as administrative agent, was filed as Exhibit 10.1 to to the Registrant’s Current Report on Form 8-K filed on April 18, 2023.
†31.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
†31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
††32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
††32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance Document
101.SCH**	Inline XBRL Taxonomy Extension Schema Document
101.CAL**	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

† Filed herewith.

†† Furnished herewith.

*The instance document does not appear in the Interactive Data File because its XBRL (Extensible Business Reporting Language) tags are embedded within the Inline XBRL document.

**Attached as Exhibit 101 to this report are the following documents formatted in Inline XBRL: (i) the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2023 and 2022, (ii) the Condensed Consolidated Balance Sheet at June 30, 2023 and December 31, 2022, (iii) the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2023 and 2022, and (iv) Notes to Condensed Consolidated Financial Statements for the six months ended June 30, 2023.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			PPG INDUSTRIES, INC.
			(Registrant)
Date:	July 21, 2023	By:	/s/ Vincent J. Morales
			Vincent J. Morales
			Senior Vice President and Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer)
		By:	/s/ Brian R. Williams
			Brian R. Williams
			Vice President and Controller (Principal Accounting Officer and Duly Authorized Officer)

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EX-31.1

Exhibit 31.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

I, Timothy M. Knavish, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPG Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	July 21, 2023	/s/ Timothy M. Knavish
		Timothy M. Knavish Director, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

I, Vincent J. Morales, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPG Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	July 21, 2023	/s/ Vincent J. Morales
		Vincent J. Morales Senior Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of PPG Industries, Inc. for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Timothy M. Knavish, Director, President and Chief Executive Officer of PPG Industries, Inc., certify to the best of my knowledge, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PPG Industries, Inc.

/s/ Timothy M. Knavish

Timothy M. Knavish
Director, President and Chief Executive Officer

July 21, 2023

A signed original of this written statement required by Section 906 has been provided to PPG Industries, Inc. and will be retained by PPG Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of PPG Industries, Inc. for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Vincent J. Morales, Senior Vice President and Chief Financial Officer of PPG Industries, Inc., certify to the best of my knowledge, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PPG Industries, Inc.

/s/ Vincent J. Morales

Vincent J. Morales
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)

July 21, 2023

A signed original of this written statement required by Section 906 has been provided to PPG Industries, Inc. and will be retained by PPG Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover	6 Months Ended
	Jun. 30, 2023 shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	1-1687
Entity Registrant Name	PPG INDUSTRIES INC
Entity Tax Identification Number	25-0730780
Entity Incorporation, State or Country Code	PA
Entity Address, Address Line One	One PPG Place
Entity Address, City or Town	Pittsburgh
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15272
City Area Code	412
Local Phone Number	434-3131
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	235,513,001
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000079879
Current Fiscal Year End Date	--12-31
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $1.66 2/3
Trading Symbol	PPG
Security Exchange Name	NYSE
0.875% Notes Due 2025
Entity Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2025
Trading Symbol	PPG 25
Security Exchange Name	NYSE
1.875% Notes Due 2025
Entity Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2025
Trading Symbol	PPG 25A
Security Exchange Name	NYSE
1.400% Notes Due 2027
Entity Information [Line Items]
Title of 12(b) Security	1.400% Notes due 2027
Trading Symbol	PPG 27
Security Exchange Name	NYSE
2.750% Notes Due 2029
Entity Information [Line Items]
Title of 12(b) Security	2.750% Notes due 2029
Trading Symbol	PPG 29A
Security Exchange Name	NYSE

XML

Condensed Consolidated Statement of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 4,872	$ 4,691	$ 9,252	$ 8,999
Cost of sales, exclusive of depreciation and amortization	2,866	2,954	5,462	5,652
Selling, general and administrative	1,069	982	2,061	1,956
Depreciation	93	99	185	201
Amortization	40	42	81	85
Research and development, net	110	115	214	230
Interest expense	67	38	126	68
Interest income	(32)	(11)	(57)	(20)
Impairment and other related charges, net	0	(60)	0	230
Pension settlement charge	0	0	190	0
Other charges/(income), net	13	(34)	(9)	(47)
Income before income taxes	646	566	999	644
Income tax expense	149	118	229	173
Income from continuing operations	497	448	770	471
Loss from discontinued operations, net of tax	0	(2)	0	(2)
Net income attributable to the controlling and noncontrolling interests	497	446	770	469
Net income attributable to noncontrolling interests	7	5	16	10
Net income (attributable to PPG)	490	441	754	459
Income from continuing operations, net of tax	490	443	754	461
Loss from discontinued operations, net of tax	$ 0	$ (2)	$ 0	$ (2)
Income from continuing operations (in dollars per share)	$ 2.08	$ 1.87	$ 3.20	$ 1.95
Loss from discontinued operations (in dollars per share)	0	(0.01)	0	(0.01)
Earnings per common share (attributable to PPG) (in dollars per share)	2.08	1.86	3.20	1.94
Income from continuing operations, per diluted share (in dollars per share)	2.06	1.86	3.18	1.94
Loss from discontinued operations, per diluted share (in dollars per share)	0	(0.01)	0	(0.01)
Earnings per common share (attributable to PPG) - assuming dilution (in dollars per share)	$ 2.06	$ 1.85	$ 3.18	$ 1.93

XML

Condensed Consolidated Statement of Comprehensive Income/(Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income attributable to controlling and noncontrolling interests	$ 497	$ 446	$ 770	$ 469
Other comprehensive income/(loss), net of tax:
Defined benefit pension and other postretirement benefits	0	13	139	9
Unrealized foreign currency translation adjustments	109	(227)	373	(190)
Other comprehensive income/(loss), net of tax	109	(214)	512	(181)
Total comprehensive income	606	232	1,282	288
Less: amounts attributable to noncontrolling interests:
Net income	(7)	(5)	(16)	(10)
Unrealized foreign currency translation adjustments	0	6	(1)	9
Comprehensive income attributable to PPG	$ 599	$ 233	$ 1,265	$ 287

XML

Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,228	$ 1,099
Short-term investments	68	55
Receivables, net	3,821	3,303
Inventories	2,506	2,272
Other current assets	445	444
Total current assets	8,068	7,173
Property, plant and equipment (net of accumulated depreciation of $4,841 and $4,649)	3,418	3,328
Goodwill	6,294	6,078
Identifiable intangible assets, net	2,493	2,414
Deferred income taxes	243	95
Investments	262	244
Operating lease right-of-use assets	836	829
Other assets	602	583
Total	22,216	20,744
Current liabilities:
Accounts payable and accrued liabilities	4,306	4,087
Restructuring reserves	113	138
Short-term debt and current portion of long-term debt	809	313
Current portion of operating lease liabilities	188	183
Total current liabilities	5,416	4,721
Long-term debt	6,099	6,503
Operating lease liabilities	633	636
Accrued pensions	569	566
Other postretirement benefits	473	476
Deferred income taxes	577	501
Other liabilities	657	632
Total liabilities	14,424	14,035
Shareholders’ equity:
Common stock	969	969
Additional paid-in capital	1,166	1,130
Retained earnings	21,290	20,828
Treasury stock, at cost	(13,512)	(13,525)
Accumulated other comprehensive loss	(2,299)	(2,810)
Total PPG shareholders’ equity	7,614	6,592
Noncontrolling interests	178	117
Total shareholders’ equity	7,792	6,709
Total	$ 22,216	$ 20,744

XML

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Property, accumulated depreciation	$ 4,841	$ 4,649

XML

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) Statement - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total PPG	Non-controlling Interests
Beginning balance at Dec. 31, 2021	$ 6,411	$ 969	$ 1,081	$ 20,372	$ (13,386)	$ (2,750)	$ 6,286	$ 125
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the controlling and noncontrolling interests	23			18			18	5
Other comprehensive loss, net of tax	33					36	36	(3)
Cash dividends	(139)			(139)			(139)
Issuance of treasury stock	29		24		5		29
Stock-based compensation activity	(12)		(12)				(12)
Dividends paid on subsidiary common stock to noncontrolling interests	(1)							(1)
Reductions in noncontrolling interests	(11)							(11)
Ending balance at Mar. 31, 2022	6,333	969	1,093	20,251	(13,381)	(2,714)	6,218	115
Beginning balance at Dec. 31, 2021	6,411	969	1,081	20,372	(13,386)	(2,750)	6,286	125
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the controlling and noncontrolling interests	469
Other comprehensive loss, net of tax	(181)
Ending balance at Jun. 30, 2022	6,291	969	1,111	20,552	(13,528)	(2,922)	6,182	109
Beginning balance at Mar. 31, 2022	6,333	969	1,093	20,251	(13,381)	(2,714)	6,218	115
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the controlling and noncontrolling interests	446			441			441	5
Other comprehensive loss, net of tax	(214)					(208)	(208)	(6)
Cash dividends	(140)			(140)			(140)
Treasury Stock, Value, Acquired, Cost Method	150				150		150
Issuance of treasury stock	9		6		3		9
Stock-based compensation activity	9		9				9
Dividends paid on subsidiary common stock to noncontrolling interests	(6)							(6)
Stockholders' Equity, Other	4		3				3	1
Ending balance at Jun. 30, 2022	6,291	969	1,111	20,552	(13,528)	(2,922)	6,182	109
Beginning balance at Dec. 31, 2022	6,709	969	1,130	20,828	(13,525)	(2,810)	6,592	117
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the controlling and noncontrolling interests	273			264			264	9
Other comprehensive loss, net of tax	403					402	402	1
Cash dividends	(146)			(146)			(146)
Issuance of treasury stock	31		21		10		31
Stock-based compensation activity	(1)		(1)				(1)
Dividends paid on subsidiary common stock to noncontrolling interests	(1)							1
Reductions in noncontrolling interests	(15)							(15)
Ending balance at Mar. 31, 2023	7,253	969	1,150	20,946	(13,515)	(2,408)	7,142	111
Beginning balance at Dec. 31, 2022	6,709	969	1,130	20,828	(13,525)	(2,810)	6,592	117
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the controlling and noncontrolling interests	770
Other comprehensive loss, net of tax	512
Ending balance at Jun. 30, 2023	7,792	969	1,166	21,290	(13,512)	(2,299)	7,614	178
Beginning balance at Mar. 31, 2023	7,253	969	1,150	20,946	(13,515)	(2,408)	7,142	111
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the controlling and noncontrolling interests	497			490			490	7
Other comprehensive loss, net of tax	109					109	109
Cash dividends	(146)			(146)			(146)
Issuance of treasury stock	10		7		3		10
Stock-based compensation activity	9		9				9
Dividends paid on subsidiary common stock to noncontrolling interests	(10)							(10)
Acquisition of noncontrolling interests	70		0				0	70
Ending balance at Jun. 30, 2023	$ 7,792	$ 969	$ 1,166	$ 21,290	$ (13,512)	$ (2,299)	$ 7,614	$ 178

XML

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities:
Net income attributable to the controlling and noncontrolling interests	$ 770	$ 469
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization	266	286
Pension settlement charge	190	0
Impairment and other related charges, net	0	230
Stock-based compensation expense	34	18
Deferred income taxes	(112)	(95)
Cash used for restructuring actions	(29)	(52)
Change in certain asset and liability accounts (net of acquisitions):
Receivables	(528)	(792)
Inventories	(176)	(437)
Other current assets	(61)	(83)
Accounts payable and accrued liabilities	156	417
Taxes and interest payable	51	33
Noncurrent assets and liabilities, net	(77)	(25)
Other	137	(107)
Cash from/(used for) operating activities	621	(136)
Investing activities:
Capital expenditures	(242)	(264)
Business acquisitions, net of cash balances acquired	(106)	(43)
Proceeds from asset sales	0	116
Proceeds from the settlement of cross currency swap contracts	52	18
Other	6	23
Cash used for investing activities	(290)	(150)
Financing activities:
Net proceeds from/(payments on) commercial paper and short-term debt	100	(440)
Net change in borrowing with maturities of three months or less	(12)	15
Proceeds from Term Loan	550	0
Repayment of Term Loan	(300)	0
Proceeds from the issuance of debt, net of discounts and fees	0	1,116
Repayment of long-term debt	300	0
Purchase of treasury stock	0	(175)
Dividends paid on PPG common stock	(292)	(279)
Other	(12)	(24)
Cash (used for)/from financing activities	(266)	213
Effect of currency exchange rate changes on cash and cash equivalents	64	(1)
Net increase/(decrease) in cash and cash equivalents	129	(74)
Cash and cash equivalents, beginning of period	1,099	1,005
Cash and cash equivalents, end of period	1,228	931
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Interest paid, net of amount capitalized	130	69
Taxes paid, net of refunds	270	214
Capital expenditures accrued within Accounts payable and accrued liabilities at period-end	73	51
Purchases of treasury stock transacted but not yet settled	$ 0	$ 15

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Basis of Presentation

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The condensed consolidated financial statements included herein are unaudited and have been prepared following the requirements of the Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim reporting. Under these rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. These statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the financial position and shareholders' equity of PPG as of June 30, 2023 and the results of its operations and cash flows for the three and six months ended June 30, 2023 and 2022. All intercompany balances and transactions have been eliminated. Material subsequent events are evaluated through the report issuance date and disclosed where applicable. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in PPG's 2022 Annual Report on Form 10-K (the "2022 Form 10-K").

Net sales, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results of operations for the three and six months ended June 30, 2023 and the trends in these unaudited condensed consolidated financial statements may not necessarily be indicative of the results to be expected for the full year.

Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on our previously reported Net income, total assets, cash flows or shareholders’ equity.

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New Accounting Standards

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

New Accounting Standards

New Accounting Standards

Accounting Standards Adopted in 2023

Effective January 1, 2023, PPG adopted Accounting Standards Update ("ASU") No. 2022-04, “Liabilities - Supplier Finance Programs." This ASU is intended to enhance the transparency surrounding the use of supplier finance programs. The guidance does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs.

PPG has certain voluntary supply chain finance programs with financial intermediaries which provide participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. PPG’s responsibility is limited to making payments on the terms originally negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The range of payment terms PPG negotiates with suppliers are consistent, regardless of whether a supplier participates in a supply chain finance program. The total amount due to financial intermediaries to settle supplier invoices under supply chain finance programs was $179 million and $390 million as of June 30, 2023 and December 31, 2022, respectively. These amounts are included within Accounts payable and accrued liabilities on the accompanying condensed consolidated balance sheet.

Recently Issued Accounting Standards

There were no accounting pronouncements promulgated prior to June 30, 2023 that are not effective until a future date which are expected to have a material impact on PPG's consolidated financial position, results of operations or cash flows.

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Inventories

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

($ in millions)	June 30, 2023	December 31, 2022
Finished products	$1,390	$1,209
Work in process	275	238
Raw materials	794	784
Supplies	47	41
Total Inventories	$2,506	$2,272

Most U.S. inventories are valued using the last-in, first-out method. These inventories represented approximately 16% and 21% of total inventories at June 30, 2023 and December 31, 2022, respectively. If the first-in, first-out ("FIFO") method of inventory valuation had been used, inventories would have been $270 million and $272 million higher as of June 30, 2023 and December 31, 2022, respectively.

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Goodwill and Other Identifiable Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Identifiable Intangible Assets

Goodwill and Other Identifiable Intangible Assets

The Company tests indefinite-lived intangible assets and goodwill for impairment by performing either a qualitative evaluation or a quantitative test at least annually, or more frequently if an indication of impairment arises. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit or asset is less than its carrying amount.

The Company did not identify an indication of goodwill impairment for any of its reporting units or an indication of impairment of any of its indefinite-lived intangible assets during the six months ended June 30, 2023.

The change in the carrying amount of goodwill attributable to each reportable segment for the six months ended June 30, 2023 was as follows:

($ in millions)	Performance Coatings	Industrial Coatings	Total
January 1, 2023	$4,881	$1,197	$6,078
Acquisitions, including purchase accounting adjustments	122	10	132
Foreign currency impact	80	4	84
June 30, 2023	$5,083	$1,211	$6,294

A summary of the carrying value of the Company's identifiable intangible assets is as follows:

	June 30, 2023			December 31, 2022
($ in millions)	Gross Carrying Amount	Accumulated Amortization	Net	Gross Carrying Amount	Accumulated Amortization	Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks	$1,432	$—	$1,432	$1,325	$—	$1,325
Definite-Lived Identifiable Intangible Assets
Acquired technology	$844	($658)	$186	$827	($636)	$191
Customer-related	1,917	(1,192)	725	1,855	(1,112)	743
Trade names	318	(170)	148	311	(158)	153
Other	50	(48)	2	50	(48)	2
Total Definite-Lived Intangible Assets	$3,129	($2,068)	$1,061	$3,043	($1,954)	$1,089
Total Identifiable Intangible Assets	$4,561	($2,068)	$2,493	$4,368	($1,954)	$2,414

The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives.

As of June 30, 2023, estimated future amortization expense of identifiable intangible assets is as follows:

($ in millions)	Future Amortization Expense
Remaining six months of 2023	$71
2024	$132
2025	$120
2026	$98
2027	$90
2028	$78
Thereafter	$472

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Business Restructuring

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Business Restructuring

Business Restructuring The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including both operations from acquisitions and headcount reduction programs. These charges consist primarily of severance costs and certain other cash costs. As a result of these programs, the Company also incurs incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected useful life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 16, "Reportable Business Segment Information" for additional information.

The following table summarizes restructuring reserve activity for the six months ended June 30, 2023 and 2022:

	Total Reserve
($ in millions)	2023	2022
January 1	$169	$231
Approved restructuring actions	12	—
Release of prior reserves and other adjustments(a)	(15)	—
Cash payments	(29)	(52)
Foreign currency impact	2	(13)
June 30	$139	$166

(a)Certain releases were recorded to reflect the current estimate of costs to complete planned business restructuring actions.

The majority of the approved business restructuring actions and associated cash outlays are expected to be completed in 2023 and 2024.

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Borrowings

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

In April 2023, PPG entered into a €500 million Term Loan Credit Agreement (the "Term Loan"). The Term Loan provides the Company with the ability to increase the size of the loan by an amount not to exceed €250 million. The Term Loan contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Term Loan terminates and all amounts outstanding are payable in April 2026. In April 2023, PPG borrowed €500 million under the Term Loan. The notes are denominated in euro and have been designated as hedges of net investments in the Company’s European operations. For more information, refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements.”

In March 2023, PPG's $300 million 3.2% notes matured, and the Company repaid this obligation using cash on hand.

In May 2022, PPG completed a public offering of €300 million 1.875% Notes due 2025 and €700 million 2.750% Notes due 2029. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2022 Indenture"). The 2022 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase Notes upon a Change of Control Triggering Event (as defined in the 2022 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, were $1,061 million. The notes are denominated in euro and have been designated as hedges of net investments in the Company’s European operations. For more information, refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements.”

In March 2022, PPG privately placed a 15-year €50 million 1.95% fixed interest note. This note contains covenants materially consistent with the 1.875% notes discussed above. This debt arrangement is denominated in euros and has been designated as a net investment hedge of the Company's European operations. Refer to Note 12 "Financial Instruments, Hedging Activities and Fair Value Measurements" for additional information.

In February 2021, PPG entered into a $2.0 billion Term Loan Credit Agreement (the "Term Loan Credit Agreement") to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. The Term Loan Credit Agreement provided the Company with the ability to borrow up to an aggregate principal amount of $2.0 billion on an unsecured basis. In addition to the amounts borrowed to finance the acquisition of Tikkurila, the Term Loan Credit Agreement allowed the Company to make up to eleven additional borrowings prior to December 31, 2021, to be used for working capital and general corporate purposes. The Term Loan Credit Agreement contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Term Loan Credit Agreement matures

and all outstanding borrowings are due and payable on the third anniversary of the date of the initial borrowing under the Agreement. In March 2023, PPG amended the Term Loan Credit Agreement to replace the LIBOR-based reference interest rate option with a reference interest rate option based upon Term Secured Overnight Financing Rate ("SOFR"). The other terms of the Term Loan Credit Agreement remain unchanged. In June 2021, PPG borrowed $700 million under the Term Loan Credit Agreement to finance the Company’s acquisition of Tikkurila, and to pay fees, costs and expenses related thereto. In December 2021, PPG borrowed an additional $700 million under the Term Loan Credit Agreement. In 2022, PPG repaid $300 million of the Term Loan Credit Agreement using cash on hand. In the first quarter 2023, PPG repaid $100 million of the Term Loan Credit Agreement using cash on hand. In the second quarter 2023, PPG repaid $200 million of the Term Loan Credit Agreement using cash on hand. Borrowings of $800 million and $1.1 billion were outstanding under the Term Loan Credit Agreement as of June 30, 2023 and December 31, 2022, respectively.

In March 2023, PPG amended its five-year credit agreement (the “Credit Agreement”) dated as of August 30, 2019. The amendments to the Credit Agreement replace the LIBOR-based reference interest rate option with a reference interest rate option based upon Term SOFR. The other terms of the Credit Agreement remain unchanged. The Credit Agreement provides for a $2.2 billion unsecured revolving credit facility. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions precedent. The Credit Agreement will terminate on August 30, 2024. The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain subsidiaries of the Company as borrowers under the Credit Agreement. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of June 30, 2023 and December 31, 2022.

The Term Loan, Term Loan Credit Agreement and Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan, Term Loan Credit Agreement and Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of June 30, 2023, Total Indebtedness to Total Capitalization as defined under the Term Loan, Term Loan Credit Agreement and Credit Agreement was 46%.

The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. There were $100 million commercial paper borrowings outstanding as of June 30, 2023. There no commercial paper borrowings outstanding as of December 31, 2022.

As of June 30, 2023, PPG was in full compliance with the restrictive covenants under its various credit agreements, loan agreements and indentures.

Letters of Credit and Surety Bonds

The Company had outstanding letters of credit and surety bonds of $228 million as of June 30, 2023.

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Impairment and Other Related Charges

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Impairment and Other Related Charges

Impairment and Other Related (Income)/Charges, Net

In the first quarter 2022, Russian military forces invaded Ukraine. This military action had significant and immediate adverse economic impacts on businesses operating in Russia and Ukraine. Based on deteriorating business conditions and regulatory restrictions, including the impact of economic sanctions imposed on Russia by the United States, the European Union and other governments, PPG immediately ceased sales to Russian state-owned entities, announced that the Company would cease all new investments in Russia and commenced actions to wind down most of the Company’s operations in Russia.

Based on this change in facts and circumstances, the long-term cash flow forecast for the Company’s operations in Russia was significantly reduced. This reduction in the long-term cash flow forecast indicated that the carrying amounts of long-lived assets and certain indefinite-lived intangible assets associated with the Company’s operations in Russia may not be recoverable, and the carrying value of these assets was tested for impairment. Additionally, the Company evaluated trade receivables for estimated future credit losses, inventories for declines in net realizable value and other current assets for impairment in light of the deteriorating economic conditions in Russia and Ukraine. As a result, during the three months ended March 31, 2022, the Company recognized $290 million of Impairment and other related (income)/charges, net in the condensed consolidated statement of income, comprised of $201 million of long-lived asset impairment charges and $89 million of other related charges.

The $201 million of long-lived asset impairment charges recorded during first quarter 2022 was comprised of $124 million related to indefinite-lived intangible assets, $54 million related to property, plant and equipment, net and $23 million related to definite-lived intangible assets. The $89 million of other related charges represented

reserves established for receivables and other current assets and the write-down of inventories impacted by the adverse economic consequences of the Russian invasion of Ukraine.

In the second quarter 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories, resulting in recognition of income of $60 million within Impairment and other related (income)/charges, net.

The Company continues to explore various options to exit Russia, including a possible sale of its Russian business or controlled withdrawal from the Russia market.

During the three and six months ended June 30, 2023 and the twelve months ended December 31, 2022, net sales in Russia represented approximately 1% of PPG net sales.

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
(number of shares in millions)	2023	2022	2023	2022
Weighted average common shares outstanding	236.0	236.4	235.9	236.5
Effect of dilutive securities:
Stock options	0.6	0.5	0.5	0.7
Other stock compensation plans	0.7	0.7	0.7	0.7
Potentially dilutive common shares	1.3	1.2	1.2	1.4
Adjusted weighted average common shares outstanding	237.3	237.6	237.1	237.9
Dividends per common share	$0.62	$0.59	$1.24	$1.18

Excluded from the computation of earnings per diluted share due to their antidilutive effect were 0.4 million and 0.9 million of outstanding stock options for the three and six months ended June 30, 2023, respectively, and 1.0 million and 0.5 million for the three and six months ended June 30, 2022, respectively.

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Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

	Six Months Ended June 30
	2023		2022
Effective tax rate on pretax income	22.9	%	26.9	%

The effective tax rate of 26.9% for the six months ended June 30, 2022 reflected a tax benefit of $27 million on the $230 million Impairment and other related (income)/charges, net associated with PPG's operations in Russia.

Income tax expense for the six months ended June 30, 2023 and 2022 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss. During the year, PPG management regularly updates forecasted annual pretax results for the various countries in which PPG operates based on changes in factors such as prices, shipments, product mix, raw material inflation and manufacturing operations. To the extent that actual 2023 pretax results for U.S. and foreign income or loss vary from estimates, the actual Income tax expense recognized in 2023 could be different from the forecasted amount used to estimate Income tax expense for the six months ended June 30, 2023.

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Pensions and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Pensions and Other Postretirement Benefits

Pensions and Other Postretirement Benefits

U.S. Pension Annuity Contracts

In March 2023, the Company purchased group annuity contracts that transferred to third-party insurance companies pension benefit obligations for certain of the Company’s retirees in the U.S. who were receiving their monthly retirement benefit payments from the U.S. pension plan. The amount of each affected retiree’s annuity payment is equal to the amount of such individual’s pension benefit. The purchase of group annuity contracts was funded directly by the assets of the U.S. plans. By transferring the obligations and assets to the insurance companies, the Company reduced its overall pension projected benefit obligation by $309 million and recognized a non-cash Pension settlement charge of $190 million.

The service cost component of net periodic pension benefit cost/(income) and other postretirement benefit cost is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statement of income. Except for the Pension settlement charge in the quarter ended March 31, 2023, all other components of net periodic benefit cost are recorded in Other charges/(income), net in the accompanying condensed consolidated statement of income.

Net periodic pension benefit cost/(income) and other postretirement benefit cost for the three and six months ended June 30, 2023 and 2022 was as follows:

	Pension
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Service cost	$2	$2	$4	$4
Interest cost	24	18	55	37
Expected return on plan assets	(24)	(35)	(55)	(71)
Amortization of actuarial losses	3	9	10	17
Settlements	1	—	191	—
Net periodic benefit cost/(income)	$6	($6)	$205	($13)

	Other Postretirement Benefits
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Service cost	$1	$1	$2	$4
Interest cost	6	4	13	8
Amortization of actuarial (gains)/losses	(1)	2	(1)	6
Amortization of prior service credit	(1)	(2)	(3)	(5)
Net periodic benefit cost	$5	$5	$11	$13

Net periodic pension cost was higher for both the three and six months ended June 30, 2023 compared to 2022, primarily due the Pension settlement charge recognized in the first quarter 2023 and higher interest cost driven by an increase in discount rates. In addition, declines in the market value of pension investments during 2022 resulted in a lower asset base to generate returns on plan assets in 2023.

PPG expects 2023 full year net periodic pension cost of approximately $220 million, which includes the impact of the $190 million Pension settlement charge recognized during the first quarter 2023. PPG expects 2023 full year net periodic other postretirement benefit cost of approximately $25 million.

Contributions to Defined Benefit Pension Plans

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Non-U.S. defined benefit pension mandatory contributions	$1	$1	$2	$2

PPG expects to make contributions to its defined benefit pension plans in the range of $5 million to $10 million during the remaining six months of 2023. PPG may make voluntary contributions to its defined benefit pension plans in 2023 and beyond.

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Accumulated Other Comprehensive Loss (AOCL)

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss (AOCL)

($ in millions)	Foreign Currency Translation Adjustments (a)	Pension and Other Postretirement Benefit Adjustments, net of tax (b)	Unrealized Gain on Derivatives, net of tax	Accumulated Other Comprehensive Loss
January 1, 2022	($1,988)	($763)	$1	($2,750)
Current year deferrals to AOCL	(191)	(4)	—	(195)
Reclassifications from AOCL to net income	10	13	—	23
June 30, 2022	($2,169)	($754)	$1	($2,922)
January 1, 2023	($2,254)	($557)	$1	($2,810)
Current year deferrals to AOCL	371	(11)	—	360
Reclassifications from AOCL to net income	1	150	—	151
June 30, 2023	($1,882)	($418)	$1	($2,299)

(a)The tax cost related to unrealized foreign currency translation adjustments on net investment hedges was $58 million and $46 million as of June 30, 2023 and 2022, respectively.

(b)The tax (benefit)/cost related to the adjustment for pension and other postretirement benefits was $(47) million and $5 million for the six months ended June 30, 2023 and 2022, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit cost (See Note 10, "Pensions and Other Postretirement Benefits").

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Financial Instruments, Hedging Activities and Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments, Hedging Activities and Fair Value Measurements

Financial Instruments, Hedging Activities and Fair Value Measurements

Financial instruments include cash and cash equivalents, short-term investments, cash held in escrow, marketable equity securities, accounts receivable, company-owned life insurance, accounts payable, short-term and long-term debt instruments, and derivatives. The fair values of these financial instruments approximated their carrying values at June 30, 2023 and December 31, 2022, in the aggregate, except for long-term debt instruments.

Hedging Activities

The Company has exposure to market risk from changes in foreign currency exchange rates and interest rates. As a result, financial instruments, including derivatives, have been used to hedge a portion of these underlying economic exposures. Certain of these instruments may qualify as fair value, cash flow, and net investment hedges upon meeting the requisite criteria, including effectiveness of offsetting hedged or underlying exposures. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in Income before income taxes in the period incurred.

PPG’s policies do not permit speculative use of derivative financial instruments. PPG enters into derivative financial instruments with high credit quality counterparties and diversifies its positions among such counterparties in order to reduce its exposure to credit losses. The Company did not realize a credit loss on derivatives during the three and six months ended June 30, 2023 and 2022.

All of PPG's outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement.

There were no derivative instruments de-designated or discontinued as hedging instruments during the three and six months ended June 30, 2023 and 2022, and there were no gains or losses deferred in Accumulated other

comprehensive loss on the condensed consolidated balance sheet that were reclassified to Income before income taxes in the condensed consolidated statement of income in the six months ended June 30, 2023 and 2022 related to hedges of anticipated transactions that were no longer expected to occur.

Fair Value Hedges

The Company uses interest rate swaps from time to time to manage its exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value.

PPG has interest rate swaps which converted $375 million and $525 million of fixed rate debt to variable rate debt as of June 30, 2023 and December 31, 2022, respectively. These swaps are designated as fair value hedges and are carried at fair value. Changes in the fair value of these swaps and changes in the fair value of the related debt are recorded in interest expense in the accompanying condensed consolidated statement of income. The fair value of these interest rate swaps was a liability of $22 million and $20 million at June 30, 2023 and December 31, 2022, respectively.

Cash Flow Hedges

At times, PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. There were no outstanding cash flow hedges at June 30, 2023 and December 31, 2022.

Net Investment Hedges

PPG uses cross currency swaps and foreign currency euro-denominated debt to hedge a portion of its net investment in its European operations, as follows:

PPG had U.S. dollar to euro cross currency swap contracts with total notional amounts of $475 million and $775 million as of June 30, 2023 and December 31, 2022, respectively, and designated these contracts as hedges of the Company's net investment in its European operations. During the term of these contracts, PPG will receive payments in U.S. dollars and make payments in euros to the counterparties. As of June 30, 2023 and December 31, 2022, the fair value of the U.S. dollar to euro cross currency swap contracts were net assets of $38 million and $88 million, respectively.

As of June 30, 2023 and December 31, 2022, PPG had designated €3.0 billion and €2.5 billion, respectively, of euro-denominated borrowings as hedges of a portion of its net investment in the Company's European operations. The carrying value of these instruments were $3.2 billion and $2.6 billion as of June 30, 2023 and December 31, 2022, respectively.

Other Financial Instruments

PPG uses foreign currency forward contracts to manage certain net transaction exposures that either have not been elected, or do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other charges/(income), net in the condensed consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $2.1 billion and $1.8 billion at June 30, 2023 and December 31, 2022, respectively. The fair values of these contracts was a net asset of $5 million and $24 million as of June 30, 2023 and December 31, 2022, respectively.

Gains/Losses Deferred in Accumulated Other Comprehensive Loss

The following table summarizes the amount of gains/(losses) deferred in Other comprehensive income ("OCI") and the amount and location of gains/(losses) recognized within the condensed consolidated statement of income related to derivative and debt financial instruments for the six months ended June 30, 2023 and 2022. All amounts are shown on a pretax basis.

	June 30, 2023		June 30, 2022		Caption In Condensed Consolidated Statement of Income
($ in millions)	Loss Deferred in OCI	Gain/(Loss) Recognized	Gain Deferred in OCI	Gain Recognized
Economic
Foreign currency forward contracts	$—	$25	$—	$25	Other charges/(income), net
Fair Value
Interest rate swaps	—	(4)	—	6	Interest expense
Total forward contracts and interest rate swaps	$—	$21	$—	$31
Net Investment
Cross currency swaps	($11)	$7	$49	$7	Interest expense
Foreign denominated debt	(51)	—	140	—
Total Net Investment	($62)	$7	$189	$7

Fair Value Measurements

The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of June 30, 2023 and December 31, 2022, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 14, "Employee Benefit Plans" under Item 8 in the 2022 Form 10-K for further details). The Company's financial assets and liabilities are measured using inputs from the following three levels:

Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges.

Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments' contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves.

Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company did not have any recurring financial assets or liabilities recorded in its condensed consolidated balance sheet as of June 30, 2023 and December 31, 2022 that were measured using Level 3 inputs.

Assets and liabilities reported at fair value on a recurring basis

	June 30, 2023			December 31, 2022
($ in millions)	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Assets:
Other current assets:
Marketable equity securities	$9	$—	$—	$9	$—	$—
Foreign currency forward contracts (a)	$—	$9	$—	$—	$27	$—
Cross currency swaps (b)	$—	$—	$—	$—	$39	$—
Investments:
Marketable equity securities	$72	$—	$—	$61	$—	$—
Other assets:
Cross currency swaps (b)	$—	$38	$—	$—	$49	$—
Liabilities:
Accounts payable and accrued liabilities:
Foreign currency forward contracts (a)	$—	$4	$—	$—	$3	$—
Interest rate swaps (c)	$—	$—	$—	$—	$1	$—
Other liabilities:
Interest rate swaps (c)	$—	$22	$—	$—	$19	$—

(a)Derivatives not designated as hedging instruments

(b)Net investment hedges

(c)Fair value hedges

Long-Term Debt

($ in millions)	June 30, 2023 (a)	December 31, 2022 (b)
Long-term debt - carrying value	$6,892	$6,796
Long-term debt - fair value	$6,492	$6,375

(a)Excludes finance lease obligations of $9 million and short-term borrowings of $7 million as of June 30, 2023.

(b)Excludes finance lease obligations of $10 million and short-term borrowings of $10 million as of December 31, 2022.

The fair values of the debt instruments were measured using Level 2 inputs, including discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return ("TSR"). All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016.

Stock-based compensation expense and the associated income tax benefit recognized during the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Stock-based compensation expense	$17	$12	$34	$18
Income tax benefit recognized	$3	$3	$7	$4

Grants of stock-based compensation during the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30
	2023		2022
	Shares	Fair Value	Shares	Fair Value
Stock options	410,001	$38.55	487,277	$36.52
Restricted stock units	276,897	$125.49	211,914	$142.17
Contingent shares (a)	52,389	$129.03	57,134	$151.87

(a)The number of contingent shares represents the target value of the award.

Stock options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant. The fair value of the stock options granted during the six months ended June 30, 2023 was calculated with the following weighted average assumptions:

Weighted average exercise price	$130.08
Risk-free interest rate	3.9	%
Expected life of option in years	6.5
Expected dividend yield	1.7	%
Expected volatility	27.8	%

The risk-free interest rate is determined by using the U.S. Treasury yield curve at the date of the grant and using a maturity equal to the expected life of the option. The expected life of options is calculated using the average of the vesting term and the maximum term, as prescribed by accounting guidance on the use of the simplified method for determining the expected term of an employee share option. The expected dividend yield and volatility are based on historical stock prices and dividend amounts over past time periods equal in length to the expected life of the options.

Time-based RSUs generally vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the vesting period. Performance-based RSUs vest based on achieving specific annual performance targets for adjusted earnings per diluted share growth and cash flow return on capital over the three calendar year-end periods following the date of grant. Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the three-year performance period if PPG meets the performance targets.

The amount paid upon vesting of performance-based RSUs may range from 0% to 200% of the original grant, based upon the level of adjusted earnings per share growth achieved and frequency with which the annual cash flow return on capital performance target is met over the three calendar year periods comprising the vesting period. Performance against the earnings per share growth and the cash flow return on capital target is calculated annually, and the annual payout for each goal is weighted equally over the three-year period.

The Company also provides grants of contingent shares to selected key executives that may be earned based on PPG's TSR over the three-year period following the date of grant. Contingent share grants (referred to as “TSR awards”) are made annually and are paid out at the end of each three-year period based on the Company’s stock performance. Performance is measured by determining the percentile rank of the TSR of PPG common stock in relation to the TSR of the S&P 500 Index for the three-year period following the date of grant. This comparison group represents the entire S&P 500 Index as it existed at the beginning of the performance period, excluding any companies that were removed from the index because they ceased to be publicly traded. The payment of awards following the three-year award period is based on performance achieved in accordance with the scale set forth in the plan agreement and may range from 0% to 200% of the initial grant. A payout of 100% is earned if target performance is achieved. Contingent share awards earn dividend equivalents for the award period, which are paid to participants or credited to the participants’ deferred compensation plan accounts with the award payout at the end of the period based on the actual number of contingent shares that are earned. Any payments made at the end of the award period may be in the form of stock, cash or a combination of both. The TSR awards are classified as liability awards, and compensation expense is recognized over the three-year award period based on the fair value of the awards (giving consideration to the Company’s percentile rank of TSR) remeasured in each reporting period until settlement of the awards.

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Commitments and Contingent Liabilities

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, antitrust, employment and other matters arising out of the conduct of PPG’s current and past business activities. To the extent that these lawsuits and claims involve personal injury, property damage and certain other claims, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers may contest coverage with respect to some of the claims in the future. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters.

The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.

Asbestos Matters

As of June 30, 2023, the Company was aware of certain asbestos-related claims pending against the Company and certain of its subsidiaries. The Company is defending these asbestos-related claims vigorously. The asbestos-related claims consist of claims against the Company alleging:

•exposure to asbestos or asbestos-containing products manufactured, sold or distributed by the Company or its subsidiaries (“Products Claims”);

•personal injury caused by asbestos on premises presently or formerly owned, leased or occupied by the Company (“Premises Claims”); and

•asbestos-related claims against a subsidiary the Company acquired in 2013 (“Subsidiary Claims”).

The Company monitors and reviews the activity associated with its asbestos claims and evaluates, on a periodic basis, its estimated liability for such claims and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required. Additionally, as a supplement to its periodic monitoring and review, the Company conducts discussions with counsel and engages valuation consultants to analyze its claims history and estimate the amount of the Company’s potential liability for asbestos-related claims. The Company's asbestos-related reserves totaled $49 million and $51 million as of June 30, 2023 and December 31, 2022, respectively.

The Company believes that, based on presently available information, the total reserves of $49 million for asbestos-related claims will be sufficient to encompass all of the Company’s current and estimable potential future asbestos liabilities. These reserves, which are included within Other liabilities on the accompanying consolidated balance sheets, involve significant management judgment and represent the Company’s current best estimate of its liability for these claims.

The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) whether closed, dismissed or dormant claims are reinstituted, reinstated or revived; (iii) the amounts required to resolve both currently known and future unknown claims; (iv) the amount of insurance, if any, available to cover such claims; (v) the unpredictable aspects of the tort system, including a changing trial docket and the jurisdictions in which trials are scheduled; (vi) the outcome of any trials, including potential judgments or jury verdicts; (vii) the lack of specific information in many cases concerning exposure for which the Company is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (viii) potential changes in applicable federal and/or state tort liability law. All of these factors may have a material effect upon future asbestos-related liability estimates. While the ultimate outcome of the Company’s asbestos litigation cannot be predicted with certainty, the Company believes that any financial exposure resulting from its asbestos-related claims will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.

Environmental Matters

In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time.

As remediation at certain environmental sites progresses, PPG continues to refine its assumptions underlying the estimates of the expected future costs of its remediation programs. PPG’s ongoing evaluation may result in additional charges against income to adjust the reserves for these sites. In 2023 and 2022, certain charges have been recorded based on updated estimates to increase existing reserves for these sites. Certain other charges related to environmental remediation actions are expensed as incurred.

As of June 30, 2023 and December 31, 2022, PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, New Jersey (“New Jersey Chrome”), glass and chemical manufacturing sites, and for other environmental contingencies, including current manufacturing locations and National Priority List sites. These reserves are reported as Accounts payable and accrued liabilities and Other liabilities in the accompanying condensed consolidated balance sheet.

Environmental Reserves
($ in millions)	June 30, 2023	December 31, 2022
New Jersey Chrome	$50	$58
Glass and chemical	60	60
Other	105	99
Total	$215	$217
Current portion	$57	$50

Pretax charges against income for environmental remediation costs are included in Other charges/(income), net in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Environmental remediation pretax charges	$10	$2	$13	$8
Cash outlays for environmental remediation activities	$7	$24	$16	$47

Remediation: New Jersey Chrome

In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Judicial Consent Order (the "JCO"). Under the JCO, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and a number of additional surrounding sites. Remediation of the New Jersey Chrome sites requires PPG to remediate soil and groundwater contaminated by hexavalent chromium, as well as perform certain other environmental remediation activities. The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites relate to the extent and concentration of chromium in the soil.

PPG regularly evaluates the assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils, percentage of hazardous versus non-hazardous soils, daily soil excavation rates, and engineering, administrative and other associated costs. Based on these assessments, the reserve is adjusted accordingly. As of June 30, 2023 and December 31, 2022, PPG's reserve for remediation of all New Jersey Chrome sites was $50 million and $58 million, respectively. The major cost components of this liability are related to excavation of impacted soil, as well as groundwater remediation. These components each account for approximately 70% and 10% of the amount accrued at June 30, 2023, respectively.

There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and applicable governmental agency or community organization approvals. Considerable uncertainty exists regarding the timing of these future events for the New Jersey Chrome sites. Further resolution of these events is expected to occur over the next several years. As these events occur and to the extent that the cost estimates of the environmental remediation remedies change, the existing reserve for this environmental remediation matter will continue to be adjusted.

Remediation: Glass, Chemicals and Other Sites

Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a chemical manufacturing site in Barberton, Ohio where PPG has completed a Facility Investigation and Corrective Measure

Study under the United States Environmental Protection Agency's Resource Conservation and Recovery Act Corrective Action Program. PPG has also been addressing the impacts from a legacy plate glass manufacturing site in Kokomo, Indiana under the Voluntary Remediation Program of the Indiana Department of Environmental Management and a site associated with a legacy plate glass manufacturing site near Ford City, Pennsylvania under the Pennsylvania Land Recycling Program under the oversight of the Pennsylvania Department of Environmental Protection. PPG is currently performing additional investigation and remedial activities at these locations.

With respect to certain other waste sites, the financial condition of other potentially responsible parties also contributes to the uncertainty of estimating PPG’s final costs. Although contributors of waste to sites involving other potentially responsible parties may face governmental agency assertions of joint and several liability, in general, final allocations of costs are made based on the relative contributions of wastes to such sites. PPG is generally not a major contributor to such sites.

Remediation: Reasonably Possible Matters

In addition to the amounts currently reserved for environmental remediation, the Company may be subject to loss contingencies related to environmental matters estimated to be as much as $100 million to $200 million. Such unreserved losses are reasonably possible but are not currently considered to be probable of occurrence. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant. The loss contingencies related to these sites include significant unresolved issues such as the nature and extent of contamination at these sites and the methods that may have to be employed to remediate them.

The impact of evolving programs, such as natural resource damage claims, industrial site re-use initiatives and domestic and international remediation programs, also adds to the present uncertainties with regard to the ultimate resolution of this unreserved exposure to future loss. The Company’s assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments.

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Revenue Recognition

3 Months Ended

Jun. 30, 2022

Revenue Disclosure [Abstract]

Revenue Recognition

Revenue Recognition

The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms. 

The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations.

The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the three and six months ended June 30, 2023 and 2022, service revenue constituted less than 5% of total revenue.

Net sales by segment and region for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Performance Coatings
United States and Canada	$1,397	$1,329	$2,520	$2,392
Europe, Middle East and Africa ("EMEA")	990	994	1,890	1,943
Asia Pacific	291	287	547	561
Latin America	363	319	712	603
Total	$3,041	$2,929	$5,669	$5,499
Industrial Coatings
United States and Canada	$662	$686	$1,315	$1,338
EMEA	530	503	1,058	1,007
Asia Pacific	445	402	836	825
Latin America	194	171	374	330
Total	$1,831	$1,762	$3,583	$3,500
Total Net Sales
United States and Canada	$2,059	$2,015	$3,835	$3,730
EMEA	1,520	1,497	2,948	2,950
Asia Pacific	736	689	1,383	1,386
Latin America	557	490	1,086	933
Total PPG	$4,872	$4,691	$9,252	$8,999

Allowance for Doubtful Accounts

All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for doubtful accounts and any charge-offs. PPG provides an allowance for doubtful accounts to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators including, but not limited to, regional business environment risk, political risk, and commercial and financing risks.

PPG reviews its allowance for doubtful accounts on a quarterly basis to ensure the estimate reflects regional risk trends as well as current and future global operating conditions.

The following table summarizes allowance for doubtful accounts activity for the six months ended June 30, 2023 and 2022:

	Trade Receivables Allowance for Doubtful Accounts
($ in millions)	2023	2022
January 1	$31	$31
Bad debt expense	6	45
Recoveries of previously reserved trade receivables	(7)	(44)
Other	(2)	7
June 30	$28	$39

In the first quarter 2022, PPG recorded a bad debt reserve of $43 million associated with the adverse economic impacts of the Russian invasion of Ukraine. During the second quarter 2022, the Company released a portion of this previously established reserve due to the collection of certain trade receivables. Refer to Note 7, "Impairment and Other Related (Income)/Charges, Net" for additional information.

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Reportable Business Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Reportable Business Segment Information

Reportable Business Segment Information

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 original equipment manufacturer ("OEM") coatings, industrial coatings, packaging coatings and 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.

Reportable business segment net sales and segment income for the three and six months ended June 30, 2023 and 2022 were as follows: 

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Net sales:
Performance Coatings	$3,041	$2,929	$5,669	$5,499
Industrial Coatings	1,831	1,762	3,583	3,500
Total	$4,872	$4,691	$9,252	$8,999
Segment income:
Performance Coatings	$537	$446	$932	$765
Industrial Coatings	250	156	490	296
Total	$787	$602	$1,422	$1,061
Corporate	(85)	(55)	(152)	(107)
Interest expense, net of interest income	(35)	(27)	(69)	(48)
Pension settlement charge (a)	—	—	(190)	—
Insurance recovery of expenses incurred due to a natural disaster (b)	—	—	9	—
Impairment and other related income/(charges), net (c)	—	60	—	(230)
Business restructuring-related costs, net (d)	(14)	(8)	(14)	(22)
Transaction-related costs (e)	(7)	(6)	(7)	(10)
Income before income taxes	$646	$566	$999	$644

(a)In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in the U.S. to third-party insurance companies, resulting in a non-cash pension settlement charge.

(b)The Company incurred expenses due to damages at a southern U.S. factory resulting from a hurricane in 2020. In the first quarter 2023, the Company received reimbursement under its insurance policies related to the damages incurred at this factory due to this hurricane.

(c)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. In the second quarter 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories.

(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.

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New Accounting Standards (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

New Accounting Standards

Accounting Standards Adopted in 2023

Effective January 1, 2023, PPG adopted Accounting Standards Update ("ASU") No. 2022-04, “Liabilities - Supplier Finance Programs." This ASU is intended to enhance the transparency surrounding the use of supplier finance programs. The guidance does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs.

PPG has certain voluntary supply chain finance programs with financial intermediaries which provide participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. PPG’s responsibility is limited to making payments on the terms originally negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The range of payment terms PPG negotiates with suppliers are consistent, regardless of whether a supplier participates in a supply chain finance program. The total amount due to financial intermediaries to settle supplier invoices under supply chain finance programs was $179 million and $390 million as of June 30, 2023 and December 31, 2022, respectively. These amounts are included within Accounts payable and accrued liabilities on the accompanying condensed consolidated balance sheet.

Recently Issued Accounting Standards

There were no accounting pronouncements promulgated prior to June 30, 2023 that are not effective until a future date which are expected to have a material impact on PPG's consolidated financial position, results of operations or cash flows.

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Inventories (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventories

($ in millions)	June 30, 2023	December 31, 2022
Finished products	$1,390	$1,209
Work in process	275	238
Raw materials	794	784
Supplies	47	41
Total Inventories	$2,506	$2,272

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Goodwill and Other Identifiable Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill Attributable to Each Reportable Segment

The change in the carrying amount of goodwill attributable to each reportable segment for the six months ended June 30, 2023 was as follows:

($ in millions)	Performance Coatings	Industrial Coatings	Total
January 1, 2023	$4,881	$1,197	$6,078
Acquisitions, including purchase accounting adjustments	122	10	132
Foreign currency impact	80	4	84
June 30, 2023	$5,083	$1,211	$6,294

Identifiable Intangible Assets with Finite Lives

A summary of the carrying value of the Company's identifiable intangible assets is as follows:

	June 30, 2023			December 31, 2022
($ in millions)	Gross Carrying Amount	Accumulated Amortization	Net	Gross Carrying Amount	Accumulated Amortization	Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks	$1,432	$—	$1,432	$1,325	$—	$1,325
Definite-Lived Identifiable Intangible Assets
Acquired technology	$844	($658)	$186	$827	($636)	$191
Customer-related	1,917	(1,192)	725	1,855	(1,112)	743
Trade names	318	(170)	148	311	(158)	153
Other	50	(48)	2	50	(48)	2
Total Definite-Lived Intangible Assets	$3,129	($2,068)	$1,061	$3,043	($1,954)	$1,089
Total Identifiable Intangible Assets	$4,561	($2,068)	$2,493	$4,368	($1,954)	$2,414

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of June 30, 2023, estimated future amortization expense of identifiable intangible assets is as follows:

($ in millions)	Future Amortization Expense
Remaining six months of 2023	$71
2024	$132
2025	$120
2026	$98
2027	$90
2028	$78
Thereafter	$472

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Business Restructuring (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table summarizes restructuring reserve activity for the six months ended June 30, 2023 and 2022:

	Total Reserve
($ in millions)	2023	2022
January 1	$169	$231
Approved restructuring actions	12	—
Release of prior reserves and other adjustments(a)	(15)	—
Cash payments	(29)	(52)
Foreign currency impact	2	(13)
June 30	$139	$166

(a)Certain releases were recorded to reflect the current estimate of costs to complete planned business restructuring actions.

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
(number of shares in millions)	2023	2022	2023	2022
Weighted average common shares outstanding	236.0	236.4	235.9	236.5
Effect of dilutive securities:
Stock options	0.6	0.5	0.5	0.7
Other stock compensation plans	0.7	0.7	0.7	0.7
Potentially dilutive common shares	1.3	1.2	1.2	1.4
Adjusted weighted average common shares outstanding	237.3	237.6	237.1	237.9
Dividends per common share	$0.62	$0.59	$1.24	$1.18

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Six Months Ended June 30
	2023		2022
Effective tax rate on pretax income	22.9	%	26.9	%

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Pensions and Other Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Net Periodic Benefit Cost

Net periodic pension benefit cost/(income) and other postretirement benefit cost for the three and six months ended June 30, 2023 and 2022 was as follows:

	Pension
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Service cost	$2	$2	$4	$4
Interest cost	24	18	55	37
Expected return on plan assets	(24)	(35)	(55)	(71)
Amortization of actuarial losses	3	9	10	17
Settlements	1	—	191	—
Net periodic benefit cost/(income)	$6	($6)	$205	($13)

	Other Postretirement Benefits
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Service cost	$1	$1	$2	$4
Interest cost	6	4	13	8
Amortization of actuarial (gains)/losses	(1)	2	(1)	6
Amortization of prior service credit	(1)	(2)	(3)	(5)
Net periodic benefit cost	$5	$5	$11	$13

Defined Contribution Plan Disclosures

Contributions to Defined Benefit Pension Plans

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Non-U.S. defined benefit pension mandatory contributions	$1	$1	$2	$2

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Accumulated Other Comprehensive Loss (AOCL) (Tables)

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

($ in millions)	Foreign Currency Translation Adjustments (a)	Pension and Other Postretirement Benefit Adjustments, net of tax (b)	Unrealized Gain on Derivatives, net of tax	Accumulated Other Comprehensive Loss
January 1, 2022	($1,988)	($763)	$1	($2,750)
Current year deferrals to AOCL	(191)	(4)	—	(195)
Reclassifications from AOCL to net income	10	13	—	23
June 30, 2022	($2,169)	($754)	$1	($2,922)
January 1, 2023	($2,254)	($557)	$1	($2,810)
Current year deferrals to AOCL	371	(11)	—	360
Reclassifications from AOCL to net income	1	150	—	151
June 30, 2023	($1,882)	($418)	$1	($2,299)

(a)The tax cost related to unrealized foreign currency translation adjustments on net investment hedges was $58 million and $46 million as of June 30, 2023 and 2022, respectively.

(b)The tax (benefit)/cost related to the adjustment for pension and other postretirement benefits was $(47) million and $5 million for the six months ended June 30, 2023 and 2022, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit cost (See Note 10, "Pensions and Other Postretirement Benefits").

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Financial Instruments, Hedging Activities and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value, Cash Flow and Net Investment Hedges

The following table summarizes the amount of gains/(losses) deferred in Other comprehensive income ("OCI") and the amount and location of gains/(losses) recognized within the condensed consolidated statement of income related to derivative and debt financial instruments for the six months ended June 30, 2023 and 2022. All amounts are shown on a pretax basis.

	June 30, 2023		June 30, 2022		Caption In Condensed Consolidated Statement of Income
($ in millions)	Loss Deferred in OCI	Gain/(Loss) Recognized	Gain Deferred in OCI	Gain Recognized
Economic
Foreign currency forward contracts	$—	$25	$—	$25	Other charges/(income), net
Fair Value
Interest rate swaps	—	(4)	—	6	Interest expense
Total forward contracts and interest rate swaps	$—	$21	$—	$31
Net Investment
Cross currency swaps	($11)	$7	$49	$7	Interest expense
Foreign denominated debt	(51)	—	140	—
Total Net Investment	($62)	$7	$189	$7

Assets and Liabilities Reported at Fair Value on a Recurring Basis

Assets and liabilities reported at fair value on a recurring basis

	June 30, 2023			December 31, 2022
($ in millions)	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Assets:
Other current assets:
Marketable equity securities	$9	$—	$—	$9	$—	$—
Foreign currency forward contracts (a)	$—	$9	$—	$—	$27	$—
Cross currency swaps (b)	$—	$—	$—	$—	$39	$—
Investments:
Marketable equity securities	$72	$—	$—	$61	$—	$—
Other assets:
Cross currency swaps (b)	$—	$38	$—	$—	$49	$—
Liabilities:
Accounts payable and accrued liabilities:
Foreign currency forward contracts (a)	$—	$4	$—	$—	$3	$—
Interest rate swaps (c)	$—	$—	$—	$—	$1	$—
Other liabilities:
Interest rate swaps (c)	$—	$22	$—	$—	$19	$—

(a)Derivatives not designated as hedging instruments

(b)Net investment hedges

(c)Fair value hedges

Schedule of Long-term Debt Instruments

($ in millions)	June 30, 2023 (a)	December 31, 2022 (b)
Long-term debt - carrying value	$6,892	$6,796
Long-term debt - fair value	$6,492	$6,375

(a)Excludes finance lease obligations of $9 million and short-term borrowings of $7 million as of June 30, 2023.

(b)Excludes finance lease obligations of $10 million and short-term borrowings of $10 million as of December 31, 2022.

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-based Compensation, Activity [Table Text Block]

Stock-based compensation expense and the associated income tax benefit recognized during the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Stock-based compensation expense	$17	$12	$34	$18
Income tax benefit recognized	$3	$3	$7	$4

Details of Grants of Stock-based Compensation

Grants of stock-based compensation during the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30
	2023		2022
	Shares	Fair Value	Shares	Fair Value
Stock options	410,001	$38.55	487,277	$36.52
Restricted stock units	276,897	$125.49	211,914	$142.17
Contingent shares (a)	52,389	$129.03	57,134	$151.87

(a)The number of contingent shares represents the target value of the award.

Weighted Average Assumptions Used in Calculating the Fair Value of Stock Option

The fair value of the stock options granted during the six months ended June 30, 2023 was calculated with the following weighted average assumptions:

Weighted average exercise price	$130.08
Risk-free interest rate	3.9	%
Expected life of option in years	6.5
Expected dividend yield	1.7	%
Expected volatility	27.8	%

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Commitments and Contingent Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Environmental Liabilities [Table Text Block]

Environmental Reserves
($ in millions)	June 30, 2023	December 31, 2022
New Jersey Chrome	$50	$58
Glass and chemical	60	60
Other	105	99
Total	$215	$217
Current portion	$57	$50

Environmental Costs [Table Text Block]

Pretax charges against income for environmental remediation costs are included in Other charges/(income), net in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Environmental remediation pretax charges	$10	$2	$13	$8
Cash outlays for environmental remediation activities	$7	$24	$16	$47

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2023

Revenue Disclosure [Abstract]

Revenue from External Customers by Geographic Areas

Net sales by segment and region for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Performance Coatings
United States and Canada	$1,397	$1,329	$2,520	$2,392
Europe, Middle East and Africa ("EMEA")	990	994	1,890	1,943
Asia Pacific	291	287	547	561
Latin America	363	319	712	603
Total	$3,041	$2,929	$5,669	$5,499
Industrial Coatings
United States and Canada	$662	$686	$1,315	$1,338
EMEA	530	503	1,058	1,007
Asia Pacific	445	402	836	825
Latin America	194	171	374	330
Total	$1,831	$1,762	$3,583	$3,500
Total Net Sales
United States and Canada	$2,059	$2,015	$3,835	$3,730
EMEA	1,520	1,497	2,948	2,950
Asia Pacific	736	689	1,383	1,386
Latin America	557	490	1,086	933
Total PPG	$4,872	$4,691	$9,252	$8,999

Accounts Receivable, Allowance for Credit Loss

The following table summarizes allowance for doubtful accounts activity for the six months ended June 30, 2023 and 2022:

	Trade Receivables Allowance for Doubtful Accounts
($ in millions)	2023	2022
January 1	$31	$31
Bad debt expense	6	45
Recoveries of previously reserved trade receivables	(7)	(44)
Other	(2)	7
June 30	$28	$39

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Reportable Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Reportable Business Segment Net Sales and Segment Income

Reportable business segment net sales and segment income for the three and six months ended June 30, 2023 and 2022 were as follows: 

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2023	2022	2023	2022
Net sales:
Performance Coatings	$3,041	$2,929	$5,669	$5,499
Industrial Coatings	1,831	1,762	3,583	3,500
Total	$4,872	$4,691	$9,252	$8,999
Segment income:
Performance Coatings	$537	$446	$932	$765
Industrial Coatings	250	156	490	296
Total	$787	$602	$1,422	$1,061
Corporate	(85)	(55)	(152)	(107)
Interest expense, net of interest income	(35)	(27)	(69)	(48)
Pension settlement charge (a)	—	—	(190)	—
Insurance recovery of expenses incurred due to a natural disaster (b)	—	—	9	—
Impairment and other related income/(charges), net (c)	—	60	—	(230)
Business restructuring-related costs, net (d)	(14)	(8)	(14)	(22)
Transaction-related costs (e)	(7)	(6)	(7)	(10)
Income before income taxes	$646	$566	$999	$644

(a)In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in the U.S. to third-party insurance companies, resulting in a non-cash pension settlement charge.

(b)The Company incurred expenses due to damages at a southern U.S. factory resulting from a hurricane in 2020. In the first quarter 2023, the Company received reimbursement under its insurance policies related to the damages incurred at this factory due to this hurricane.

(c)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. In the second quarter 2022, the Company released a portion of the previously established reserves due to the collection of certain trade receivables and recorded recoveries due to the realization of certain previously written-down inventories.

(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.

(e)Transaction-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. Transaction-related costs also include losses on the sale of certain assets, which are included in Other charges/(income), net in the condensed consolidated statement of income, and 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.

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New Accounting Standards (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Supplier finance program, obligation	$ 179	$ 390

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Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished products	$ 1,390	$ 1,209
Work in process	275	238
Raw materials	794	784
Supplies	47	41
Total	$ 2,506	$ 2,272

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Inventories (Additional Information) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Line Items]
First-in, first-out method of inventory valuation, amount of increase in inventory value	$ 270	$ 272
UNITED STATES
Inventory Disclosure [Line Items]
U.S. inventories as a percentage of total inventories	16.00%	21.00%

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Goodwill and Other Identifiable Intangible Assets (Carrying Amount of Goodwill) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 6,078
Acquisitions, including purchase accounting adjustments	132
Foreign currency impact	84
Ending Balance	6,294
Performance Coatings
Goodwill [Roll Forward]
Beginning Balance	4,881
Acquisitions, including purchase accounting adjustments	122
Foreign currency impact	80
Ending Balance	5,083
Industrial Coatings
Goodwill [Roll Forward]
Beginning Balance	1,197
Acquisitions, including purchase accounting adjustments	10
Foreign currency impact	4
Ending Balance	$ 1,211

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Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets with Finite Lives) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Trademarks	$ 1,432	$ 1,325
Gross Carrying Amount	3,129	3,043
Accumulated Amortization	(2,068)	(1,954)
Net	1,061	1,089
Intangible assets, gross (excluding goodwill)	4,561	4,368
Total Identifiable Intangible Assets	2,493	2,414
Remaining six months of 2023	71
2024	132
2025	120
2026	98
2027	90
2028	78
Thereafter	472
Acquired technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	844	827
Accumulated Amortization	(658)	(636)
Net	186	191
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,917	1,855
Accumulated Amortization	(1,192)	(1,112)
Net	725	743
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	318	311
Accumulated Amortization	(170)	(158)
Net	148	153
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	50	50
Accumulated Amortization	(48)	(48)
Net	$ 2	$ 2

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Business Restructuring (Schedule of Restructuring Activity) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restructuring Charges[Line Items]
January 1	$ 169	$ 231
Release of prior reserves and other adjustments	(15)	0
Cash payments	29	52
Foreign currency impact	2	(13)
June 30	139	166
Newly Approved Restructuring Actions
Restructuring Charges[Line Items]
Business restructuring, net	$ 12	$ 0

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Borrowings (Details)		1 Months Ended						3 Months Ended			6 Months Ended
	Aug. 30, 2019 USD ($)	Apr. 30, 2023 USD ($)	May 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Aug. 31, 2019 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Apr. 12, 2023 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2022 EUR (€)	Feb. 28, 2021 USD ($)
Debt Instrument [Line Items]
Repayment of long-term debt											$ 300,000,000	$ 0
Redemption price, percentage			101.00%
Proceeds from issuance of notes			$ 1,061,000,000
Long-term debt								$ 6,892,000,000			$ 6,892,000,000			$ 6,796,000,000
Debt covenant, acquisition for consideration, minimum threshold	$ 1,000,000,000
Debt covenant, total indebtedness to total capitalization ratio, maximum when acquisition for consideration threshold is met, percentage							0.65
Debt instrument, total indebtedness to total capitalization, percentage											0.46
Long-term commercial paper								100,000,000			$ 100,000,000			0
Outstanding letters of credit								228,000,000			228,000,000
Debt covenant, total indebtedness to total capitalization ratio, maximum							0.60
3.2% Notes Due 2023
Debt Instrument [Line Items]
Repayment of long-term debt				$ 300,000,000
Stated interest percentage															3.20%
2.750% Notes Due 2029
Debt Instrument [Line Items]
Stated interest percentage			2.75%
Aggregate principal amount			$ 700,000,000
1.875% Notes Due 2025
Debt Instrument [Line Items]
Stated interest percentage			1.875%
Aggregate principal amount			$ 300,000,000
Fixed Interest Note
Debt Instrument [Line Items]
Stated interest percentage									1.95%
Aggregate principal amount | €															€ 50,000,000
Debt instrument term				15 years
Term Loan Credit Agreement
Debt Instrument [Line Items]
Repayment of long-term debt								200,000,000	$ 100,000,000	$ 300,000,000
Aggregate principal amount																$ 2,000,000,000
Proceeds from issuance of notes					$ 700,000,000	$ 700,000,000
Long-term debt								800,000,000			800,000,000			1,100,000,000
Term Loan
Debt Instrument [Line Items]
Aggregate principal amount													$ 500,000,000
Proceeds from issuance of notes		$ 500,000,000
Term loan, increase limit													$ 250,000,000
Revolving Credit Facility | Unsecured Debt
Debt Instrument [Line Items]
Debt instrument term							5 years
Long-term debt								$ 0			$ 0			$ 0
Revolving credit facility outstanding							$ 2,200,000,000
Line of credit facility, additional borrowing capacity available to lender conditions							$ 750,000,000

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Impairment and Other Related Charges (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Restructuring Charges[Line Items]
Impairment and other related charges, net	$ 0	$ 60	$ (290)	$ 0	$ (230)
Tangible asset impairment charges			201
Other asset impairment charges			89
Russia
Restructuring Charges[Line Items]
Impairment and other related charges, net					$ (230)
Revenue Benchmark | Geographic Concentration Risk | Russia
Restructuring Charges[Line Items]
Revenue, percentage of total revenue	1.00%			1.00%		1.00%
Indefinite-lived Intangible Assets
Restructuring Charges[Line Items]
Tangible asset impairment charges			124
Property, Plant and Equipment
Restructuring Charges[Line Items]
Tangible asset impairment charges			54
Finite-Lived Intangible Assets
Restructuring Charges[Line Items]
Tangible asset impairment charges			$ 23

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Earnings Per Common Share (Calculations) (Details) - $ / shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share, Diluted [Abstract]
Weighted average common shares outstanding	236.0	236.4	235.9	236.5
Effect of dilutive securities:
Stock options	0.6	0.5	0.5	0.7
Other stock compensation plans	0.7	0.7	0.7	0.7
Potentially dilutive common shares	1.3	1.2	1.2	1.4
Adjusted weighted average common shares outstanding	237.3	237.6	237.1	237.9
Dividends per common share (in dollars per share)	$ 0.62	$ 0.59	$ 1.24	$ 1.18
Outstanding stock options excluded from the computation of diluted earnings per share due to their antidilutive effect	0.4	1.0	0.9	0.5

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Contingency [Line Items]
Effective income tax rate				22.90%	26.90%
Net tax charge		$ 27
Impairment and other related charges, net	$ 0	$ (60)	$ 290	$ 0	$ 230
Russia
Income Tax Contingency [Line Items]
Impairment and other related charges, net					$ 230

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Pensions and Other Postretirement Benefits (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Pension settlement charge	$ 0		$ 0	$ 190	$ 0
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	2		2	4	4
Interest cost	24		18	55	37
Expected return on plan assets	(24)		(35)	(55)	(71)
Amortization of actuarial losses	3		9	10	17
Pension settlement charge	1	$ 190	0	191	0
Net periodic benefit cost/(income)	6		(6)	205	(13)
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	1		1	2	4
Interest cost	6		4	13	8
Amortization of actuarial losses	(1)		2	(1)	6
Amortization of prior service credit	(1)		(2)	(3)	(5)
Net periodic benefit cost/(income)	$ 5		$ 5	$ 11	$ 13

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Pensions and Other Postretirement Benefits (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Benefit pension plan, decrease for remeasurement due to Settlement			$ 309
Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected employer mandatory contributions		$ 5			$ 5
Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected employer mandatory contributions		10			10
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic benefit cost/(income)		6		$ (6)	205	$ (13)
Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic benefit cost/(income)		5		5	11	13
Mandatory Contribution
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions to defined benefit pension plans		$ 1		$ 1	$ 2	$ 2
Scenario, Forecast | Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic benefit cost/(income)	$ 220
Scenario, Forecast | Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic benefit cost/(income)	$ 25

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Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	$ (2,299)		$ (2,810)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	360	$ (195)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	151	23
Tax cost related to unrealized currency translation adjustments other than translation of foreign denominated balance sheets	58	46
Pension and other postretirement benefit adjustments, tax cost	(47)	5
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	(1,882)	(2,169)	(2,254)	$ (1,988)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	371	(191)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	1	10
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	(418)	(754)	(557)	(763)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	(11)	(4)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	150	13
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	1	1	1	1
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	$ (2,299)	$ (2,922)	$ (2,810)	$ (2,750)

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Financial Instruments, Hedging Activities and Fair Value Measurements (Additional Information) (Details) $ in Millions, € in Billions	6 Months Ended	12 Months Ended
	Jun. 30, 2023 EUR (€)	Dec. 31, 2022 EUR (€)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net			$ 38	$ 88
Fair Value of Debt Instrument Designated as a Hedge of Net Investment in Foreign Operations			3,200	2,600
Long-term debt			6,892	6,796
Long-term debt, fair value			6,492	6,375
Finance Lease, Liability			9	10
Short-term debt			7	10
Interest rate swaps
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount			375	525
Interest Rate Derivatives, at Fair Value, Net			22	20
Interest rate swaps | Accounts payable and accrued liabilities | Level 1
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative liabilities			0	0
Interest rate swaps | Accounts payable and accrued liabilities | Level 2
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative liabilities			0	1
Interest rate swaps | Accounts payable and accrued liabilities | Level 3
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative liabilities			0	0
Cross currency swaps
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount			475	775
Foreign currency forward contracts
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount			2,100	1,800
Foreign Currency Contracts, Liability, Fair Value Disclosure			5	24
Foreign currency forward contracts | Level 1 | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative liabilities			0	0
Derivative assets			0	0
Foreign currency forward contracts | Level 2 | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative liabilities			4	3
Derivative assets			9	27
Foreign currency forward contracts | Level 3 | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative liabilities			0	0
Derivative assets			$ 0	$ 0
Net Investment Hedging
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Long-term Debt | €	€ 3.0	€ 2.5

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Financial Instruments, Hedging Activities and Fair Value Measurements (Cash Flow and Net Investment Hedges) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Fair Value Hedging | Interest rate swaps
Derivatives, Fair Value [Line Items]
Gain/(Loss) Recognized	$ (4)	$ 6
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest expense	Interest expense
Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Loss Deferred in OCI	$ 0	$ 0
Gain/(Loss) Recognized	21	31
Net Investment Hedging
Derivatives, Fair Value [Line Items]
Loss Deferred in OCI	(62)	189
Gain/(Loss) Recognized	7	7
Net Investment Hedging | Cross currency swaps
Derivatives, Fair Value [Line Items]
Loss Deferred in OCI	(11)	49
Gain/(Loss) Recognized	7	7
Net Investment Hedging | Foreign denominated debt
Derivatives, Fair Value [Line Items]
Loss Deferred in OCI	(51)	140
Not Designated as Hedging Instrument | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Gain/(Loss) Recognized	$ 25	$ 25
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Income	Other Income

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Financial Instruments, Hedging Activities and Fair Value Measurements (Assets and liabilities reported at fair value on a recurring basis) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accounts payable and accrued liabilities	Accounts payable and accrued liabilities
Other current assets | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	$ 9	$ 9
Other current assets | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	0	0
Other current assets | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	0	0
Investments | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	72	61
Investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	0	0
Investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	0	0
Foreign currency forward contracts | Not Designated as Hedging Instrument | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Foreign currency forward contracts | Not Designated as Hedging Instrument | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	9	27
Derivative liabilities	4	3
Foreign currency forward contracts | Not Designated as Hedging Instrument | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Cross currency swaps | Other current assets | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Cross currency swaps | Other current assets | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	39
Cross currency swaps | Other current assets | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Cross currency swaps | Other assets | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Cross currency swaps | Other assets | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	38	49
Cross currency swaps | Other assets | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Interest rate swaps | Accounts payable and accrued liabilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Interest rate swaps | Accounts payable and accrued liabilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	1
Interest rate swaps | Accounts payable and accrued liabilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Interest rate swaps | Other Liabilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Interest rate swaps | Other Liabilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	22	19
Interest rate swaps | Other Liabilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	$ 0	$ 0

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Stock-Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 17	$ 12	$ 34	$ 18
Total income tax benefit recognized related to the stock-based compensation	$ 3	$ 3	$ 7	$ 4
Stock options granted from the PPG Omnibus Plan			410,001	487,277
Stock options granted from the PPG Omnibus Plan, weighted average fair value per share (in usd per share)			$ 38.55	$ 36.52
Maximum term of the outstanding stock options for the PPG Omnibus Plan and the PPG Stock Plan for certain employees			10 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted			276,897	211,914
RSUs granted, weighted average fair value per share (in usd per share)			$ 125.49	$ 142.17
Award vesting period (in years)			3 years
Stock Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted			52,389	57,134
RSUs granted, weighted average fair value per share (in usd per share)			$ 129.03	$ 151.87
Minimum | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Target Award			0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable period			36 months
Maximum | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Target Award			200.00%

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Stock-Based Compensation (Weighted Average Assumptions Used in Calculating Fair Value of Stock Option) (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares
Share-Based Payment Arrangement [Abstract]
Weighted average exercise price (in usd per share)	$ 130.08
Risk free interest rate	3.90%
Expected life of option in years	6 years 6 months
Expected dividend yield	1.70%
Expected volatility	27.80%

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Commitments and Contingent Liabilities Asbestos Information (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Asbestos Issue
Loss contingency accrual	$ 49	$ 51

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Commitments and Contingent Liabilities (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Commitments and Contingencies Disclosure [Line Items]
Reserves for environmental contingencies	$ 215		$ 215		$ 217
Reserves for environmental contingencies classified as current liabilities	57		57		50
Environmental remediation charge	10	$ 2	13	$ 8
Payments for Environmental Liabilities	7	$ 24	16	$ 47
Outstanding letters of credit	228		228
Minimum
Commitments and Contingencies Disclosure [Line Items]
Unreserved loss contingencies related to environmental matters			100
Maximum
Commitments and Contingencies Disclosure [Line Items]
Unreserved loss contingencies related to environmental matters			200
New Jersey Chrome
Commitments and Contingencies Disclosure [Line Items]
Reserves for environmental contingencies	50		50		58
Glass and chemical
Commitments and Contingencies Disclosure [Line Items]
Reserves for environmental contingencies	60		60		60
Other
Commitments and Contingencies Disclosure [Line Items]
Reserves for environmental contingencies	$ 105		$ 105		$ 99

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Revenue Recognition - Schedule Of Revenue By Revenue Source (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 4,872	$ 4,691	$ 9,252	$ 8,999
United States and Canada
Disaggregation of Revenue [Line Items]
Net sales	2,059	2,015	3,835	3,730
Europe, Middle East and Africa ("EMEA")
Disaggregation of Revenue [Line Items]
Net sales	1,520	1,497	2,948	2,950
Asia Pacific
Disaggregation of Revenue [Line Items]
Net sales	736	689	1,383	1,386
Latin America
Disaggregation of Revenue [Line Items]
Net sales	557	490	1,086	933
Performance Coatings
Disaggregation of Revenue [Line Items]
Net sales	3,041	2,929	5,669	5,499
Performance Coatings | United States and Canada
Disaggregation of Revenue [Line Items]
Net sales	1,397	1,329	2,520	2,392
Performance Coatings | Europe, Middle East and Africa ("EMEA")
Disaggregation of Revenue [Line Items]
Net sales	990	994	1,890	1,943
Performance Coatings | Asia Pacific
Disaggregation of Revenue [Line Items]
Net sales	291	287	547	561
Performance Coatings | Latin America
Disaggregation of Revenue [Line Items]
Net sales	363	319	712	603
Industrial Coatings
Disaggregation of Revenue [Line Items]
Net sales	1,831	1,762	3,583	3,500
Industrial Coatings | United States and Canada
Disaggregation of Revenue [Line Items]
Net sales	662	686	1,315	1,338
Industrial Coatings | Europe, Middle East and Africa ("EMEA")
Disaggregation of Revenue [Line Items]
Net sales	530	503	1,058	1,007
Industrial Coatings | Asia Pacific
Disaggregation of Revenue [Line Items]
Net sales	445	402	836	825
Industrial Coatings | Latin America
Disaggregation of Revenue [Line Items]
Net sales	$ 194	$ 171	$ 374	$ 330
Revenue from Contract with Customer | Service | Revenue from Rights Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue, percentage of total revenue	5.00%	5.00%	5.00%	5.00%

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Revenue Recognition - Schedule of Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
January 1	$ 31	$ 31	$ 31
Bad debt expense	$ 43	6	45
Recoveries of previously reserved trade receivables		(7)	(44)
Other		(2)	7
June 30		$ 28	$ 39

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Reportable Business Segment Information (Additional Information) (Details)	6 Months Ended
	Jun. 30, 2023 Segment
Segment Reporting [Abstract]
Number of Operating Segments	10
Number of Reportable Segments	2

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Reportable Business Segment Information (Segment Net Sales and Income) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	$ 4,872	$ 4,691		$ 9,252	$ 8,999
Segment income (loss)	787	602		1,422	1,061
Corporate	(85)	(55)		(152)	(107)
Interest expense, net of interest income	(35)	(27)		(69)	(48)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement	0	0		(190)	0
Insurance recovery of expenses incurred due to a natural disaster	0	0		9	0
Impairment and other related charges, net	0	60	$ (290)	0	(230)
Business restructuring-related costs, net	(14)	(8)		(14)	(22)
Acquisition-related costs	(7)	(6)		(7)	(10)
Income before income taxes	646	566		999	644
Performance Coatings
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	3,041	2,929		5,669	5,499
Segment income (loss)	537	446		932	765
Industrial Coatings
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	1,831	1,762		3,583	3,500
Segment income (loss)	$ 250	$ 156		$ 490	$ 296