Reportable Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Reportable Business Segment Net Sales and Segment Income

Reportable business segment net sales and segment income for the three and nine months ended September 30, 2024 and 2023 were as follows:


	Three Months Ended September 30		Nine Months Ended September 30
($ in millions)	2024	2023	2024	2023
Net sales:
Performance Coatings	$2,921	$2,880	$8,583	$8,549
Industrial Coatings	1,654	1,764	5,097	5,347
Total	$4,575	$4,644	$13,680	$13,896
Segment income:
Performance Coatings	$513	$452	$1,485	$1,384
Industrial Coatings	199	246	707	736
Total	$712	$698	$2,192	$2,120
Corporate unallocated	(72)	(88)	(224)	(240)
Interest expense, net of interest income	(19)	(25)	(49)	(94)
Business restructuring-related costs, net (a)	—	(13)	(15)	(27)
Portfolio optimization (b)	(10)	(15)	(42)	(22)
Legacy environmental remediation charges(c)	—	—	(20)	—
Pension settlement charge (d)	—	—	—	(190)
Insurance recovery (e)	—	—	—	9




Income before income taxes	$611	$557	$1,842	$1,556

(a)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other (income)/charges, 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 losses on the sale of non-core assets, including the loss recognized in the second quarter 2024 on the sale of the Company's traffic solutions business in Argentina and the loss recognized in the third quarter 2023 on the sale of the Company's legacy industrial Russian operations, which are included in Other (income)/charges, net in the condensed 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 on the condensed consolidated statement of income. In 2023, net loss of $2 million was attributable to noncontrolling interests.

(c)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the condensed consolidated statement of income.

(d)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.

(e)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.