Reportable Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2023


($ in millions)	2023	2022	2021
Net sales to external customers
Performance Coatings	$11,164	$10,694	$10,333
Industrial Coatings	7,082	6,958	6,469
Total Net sales	$18,246	$17,652	$16,802
Segment income
Performance Coatings	$1,709	$1,399	$1,491
Industrial Coatings	966	643	680
Total Segment income	$2,675	$2,042	$2,171
Corporate / Non-Segment Items
Corporate unallocated	(340)	(218)	(194)
Interest expense, net of interest income	(107)	(113)	(95)
Impairment and other related charges, net(1)	(160)	(245)	(21)
Business restructuring-related costs, net(2)	(43)	(75)	(27)
Portfolio optimization(3)	(53)	(10)	(86)
Pension settlement charge(4)	(190)	—	(50)
Environmental remediation charges, net(5)	(30)	—	(35)
Insurance recoveries(6)	16	—	—
Argentina currency devaluation losses(7)	(20)	—	—
Expenses incurred due to natural disasters(8)	—	—	(17)
Change in allowance for doubtful accounts related to COVID-19	—	—	14
Income from legal settlements	—	—	22
Asbestos-related claims reserve adjustment(9)	—	—	133
Total Income before income taxes	$1,748	$1,381	$1,815


($ in millions)	2023	2022	2021
Depreciation and amortization
Performance Coatings	$279	$296	$308
Industrial Coatings	213	207	212
Corporate / Non-Segment Items	66	51	41
Total	$558	$554	$561
Share of net earnings of equity affiliates
Performance Coatings	$7	$7	$5
Industrial Coatings	1	—	—
Corporate / Non-Segment Items	13	18	10
Total	$21	$25	$15
Segment assets(10)
Performance Coatings	$13,434	$13,088	$13,395
Industrial Coatings	5,643	5,802	5,807
Corporate / Non-Segment Items	2,570	1,854	2,149
Total	$21,647	$20,744	$21,351
Investment in equity affiliates
Performance Coatings	$48	$42	$33
Industrial Coatings	18	15	15
Corporate / Non-Segment Items	75	77	78
Total	$141	$134	$126
Expenditures for property (including business acquisitions)
Performance Coatings	$343	$254	$1,698
Industrial Coatings	184	313	784
Corporate / Non-Segment Items	131	65	26
Total	$658	$632	$2,508

Geographic Information


($ in millions)	2023	2022	2021
Geographic Information
Segment income
United States and Canada	$1,048	$819	$865
EMEA	679	505	612
Asia Pacific	430	332	354
Latin America	518	386	340
Total	$2,675	$2,042	$2,171
Property, plant and equipment — net
United States and Canada	$1,559	$1,394	$1,377
EMEA	1,010	943	1,069
Asia Pacific	718	685	702
Latin America	357	306	294
Total	$3,644	$3,328	$3,442

(1)In the fourth quarter 2023, the company recorded impairment and other related charges due to goodwill impairment recognized for the traffic solutions reporting unit as a result of its annual goodwill impairment test. The fair value of the traffic solutions reporting unit decreased primarily due to increases in the cost of capital (discount rate assumption) and declines in the reporting unit’s long-term forecast driven by challenges at its operations in Argentina due to the highly inflationary environment and changes to the reporting unit’s global footprint, including the fourth quarter 2023 divestiture of its European and Australian businesses. In 2022, the company recorded impairment and other related charges due to the wind down of the company's operation in Russia. In 2021, impairment charges were recorded for the write-down of certain assets related to the previously planned sale of certain smaller entities in non-strategic regions.

(2)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other charges/(income), net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the consolidated statement of income. Additionally, there was a $34 million gain on the sale of certain assets in 2021 in connection with the Company’s manufacturing footprint consolidation plans and associated restructuring programs. This gain is included in Other (income)/charges, net in the consolidated statement of income.

(3)Portfolio optimization includes losses on the sale of non-core assets, including the losses recognized on the sales of the Company's European and Australian traffic solutions businesses in 2023, which are included in Other charges/(income), net in the consolidated statement of income, accelerated amortization expense recognized in 2023 related to the exit of a non-core business, which is included in Amortization in the consolidated statement of income, and the impact for the step up to fair value of inventory acquired in certain acquisitions, which is included in Cost of sales, exclusive of depreciation and amortization in the consolidated statement of income. Portfolio optimization also includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense in the consolidated statement of income.

(4)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. In 2021, the Company purchased group annuity contracts that transferred pension benefit obligations for certain of the Company’s retirees in Canada to a third-party insurance company.

(5)Environmental remediation charges represent environmental remediation costs at certain legacy PPG manufacturing sites. These charges are included in Other charges/(income), net in the consolidated statement of income.

(6)In the first quarter 2023, the company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2020. In the fourth quarter 2023, the company received reimbursement for a previously approved insurance claim under a policy covering legacy asbestos-related matters. These insurance recoveries are included in Other charges/(income), net in the consolidated statement of income.

(7)In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso, significantly devaluing the currency relative to the United States dollar. Argentina currency devaluation losses represent foreign currency translation losses recognized during December 2023 related to the devaluation of the Argentine peso, which is included in Other charges/(income), net in the consolidated statement of income.

(8)In early 2021, a winter storm damaged certain company factories in the southern U.S. Incremental expenses incurred due to these storms included costs related to maintenance and repairs of damaged property, freight and utility premiums and other incremental expenses directly related to the impacted areas. These incremental expenses are included in Other charges/(income), net in the consolidated statement of income.

(9)In 2021, the reserve for asbestos-related claims was reduced to reflect the Company’s current estimate of potential liability for these claims.

(10)Segment assets are the total assets used in the operation of each segment. Corporate assets principally include amounts recorded in Cash and cash equivalents, Deferred income taxes, and Property, plant and equipment, net on the consolidated balance sheet.