Reportable Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Reportable Business Segment Net Sales and Segment Income

Reportable business segment net sales and segment income for the three months ended March 31, 2024 and 2023 were as follows:


	Three Months Ended March 31
($ in millions)	2024	2023
Net sales:
Performance Coatings	$2,614	$2,628
Industrial Coatings	1,697	1,752
Total	$4,311	$4,380
Segment income:
Performance Coatings	$402	$395
Industrial Coatings	249	240
Total	$651	$635
Corporate unallocated	(83)	(67)
Interest expense, net of interest income	(13)	(34)
Business restructuring-related costs, net (a)	(11)	—
Portfolio optimization (b)	(6)	—
Pension settlement charge (c)	—	(190)
Insurance recovery (d)	—	9





Income before income taxes	$538	$353

(a)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 condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed 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 condensed consolidated statement of income.

(b)Portfolio optimization 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 on the condensed consolidated statement of income.

(c)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.

(d)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.