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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment.
The components of lease expense for the years ended December 31, 2023, 2022 and 2021 were as follows:
($ in millions)Classification in the Consolidated Statement of Income202320222021
Operating lease costCost of sales, exclusive of depreciation and amortization$46 $43 $41 
Operating lease costSelling, general and administrative220 216 219 
Total operating lease cost$266 $259 $260 
Finance lease cost:
Amortization of right-of-use assetsDepreciation$2 $2 $2 
Interest on lease liabilitiesInterest expense1 1 1 
Total finance lease cost$3 $3 $3 
Total lease cost$269 $262 $263 
Total operating lease cost for the years ended December 31, 2023, 2022 and 2021 is inclusive of the following:
($ in millions)202320222021
Variable lease costs$20 $18 $18 
Short-term lease costs$20 $22 $16 
The lease amounts included in the consolidated balance sheet as of December 31, 2023 and 2022 were as follows:
($ in millions)Classification on the Consolidated Balance Sheet20232022
Assets:
OperatingOperating lease right-of-use assets$832 $829 
Finance(1)
Property, plant, and equipment, net14 15 
Total leased assets$846 $844 
Liabilities:
Current
OperatingCurrent portion of operating lease liabilities$194 $183 
FinanceShort-term debt and current portion of long-term debt2 3 
Noncurrent
OperatingOperating lease liabilities$622 $636 
FinanceLong-term debt6 7 
Total lease liabilities$824 $829 
(1)Net of accumulated depreciation of $15 million and $14 million as of December 31, 2023 and 2022, respectively.
Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 was as follows:
($ in millions)202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases$224 $218 $224 
Operating cash flows paid for finance leases$1 $1 $1 
Financing cash flows paid for finance leases$3 $2 $3 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$174 $161 $253 
Finance leases$1 $3 $— 
Lease terms and discount rates as of December 31, 2023, 2022 and 2021 were as follows:
202320222021
Weighted-average remaining lease term (in years)
Operating leases6.26.77.1
Finance leases9.59.06.4
Weighted-average discount rate
Operating leases3.2 %2.6 %2.1 %
Finance leases5.9 %5.7 %5.8 %
As of December 31, 2023, maturities of lease liabilities were as follows:
($ in millions)Operating LeasesFinance Leases
2024$216 $2 
2025176 2 
2026137 2 
2027103 1 
202880 1 
Thereafter184 1 
Total lease payments$896 $9 
Less: Interest80 1 
Total lease obligations$816 $8 
Leases Leases
PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment.
The components of lease expense for the years ended December 31, 2023, 2022 and 2021 were as follows:
($ in millions)Classification in the Consolidated Statement of Income202320222021
Operating lease costCost of sales, exclusive of depreciation and amortization$46 $43 $41 
Operating lease costSelling, general and administrative220 216 219 
Total operating lease cost$266 $259 $260 
Finance lease cost:
Amortization of right-of-use assetsDepreciation$2 $2 $2 
Interest on lease liabilitiesInterest expense1 1 1 
Total finance lease cost$3 $3 $3 
Total lease cost$269 $262 $263 
Total operating lease cost for the years ended December 31, 2023, 2022 and 2021 is inclusive of the following:
($ in millions)202320222021
Variable lease costs$20 $18 $18 
Short-term lease costs$20 $22 $16 
The lease amounts included in the consolidated balance sheet as of December 31, 2023 and 2022 were as follows:
($ in millions)Classification on the Consolidated Balance Sheet20232022
Assets:
OperatingOperating lease right-of-use assets$832 $829 
Finance(1)
Property, plant, and equipment, net14 15 
Total leased assets$846 $844 
Liabilities:
Current
OperatingCurrent portion of operating lease liabilities$194 $183 
FinanceShort-term debt and current portion of long-term debt2 3 
Noncurrent
OperatingOperating lease liabilities$622 $636 
FinanceLong-term debt6 7 
Total lease liabilities$824 $829 
(1)Net of accumulated depreciation of $15 million and $14 million as of December 31, 2023 and 2022, respectively.
Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 was as follows:
($ in millions)202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases$224 $218 $224 
Operating cash flows paid for finance leases$1 $1 $1 
Financing cash flows paid for finance leases$3 $2 $3 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$174 $161 $253 
Finance leases$1 $3 $— 
Lease terms and discount rates as of December 31, 2023, 2022 and 2021 were as follows:
202320222021
Weighted-average remaining lease term (in years)
Operating leases6.26.77.1
Finance leases9.59.06.4
Weighted-average discount rate
Operating leases3.2 %2.6 %2.1 %
Finance leases5.9 %5.7 %5.8 %
As of December 31, 2023, maturities of lease liabilities were as follows:
($ in millions)Operating LeasesFinance Leases
2024$216 $2 
2025176 2 
2026137 2 
2027103 1 
202880 1 
Thereafter184 1 
Total lease payments$896 $9 
Less: Interest80 1 
Total lease obligations$816 $8