Reportable Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

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.