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Reportable Business Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Reportable Business Segment Information Reportable Business Segment Information
PPG is a multinational manufacturer with 10 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The operating segments are aggregated into reportable business segments based on their similar economic characteristics, including similar nature of products, production processes, end-use markets and methods of distribution.
Effective December 31, 2024, the Company revised the aggregation of its ten operating segments to present three reportable business segments: Global Architectural Coatings, Performance Coatings and Industrial Coatings. This expanded segmentation will provide investors with enhanced visibility as the Company drives growth and performance. Prior year amounts have been recast to conform to current year presentation. Additionally, as a result of the divestiture of the architectural coatings business in the United States and Canada during the fourth quarter 2024, the architectural coatings Americas and Asia Pacific operating segment was renamed to the architectural coatings Latin America and Asia Pacific operating segment.
The Global Architectural Coatings reportable business segment is comprised of the architectural coatings EMEA and architectural coatings Latin America and Asia Pacific operating segments. This reportable business segment primarily supplies paints, wood stains, adhesives, sealants and purchased sundries.
The Performance Coatings reportable business segment is comprised of the automotive refinish coatings, aerospace coatings, protective and marine coatings and traffic solutions operating segments. This reportable business segment primarily supplies a variety of coatings, solvents, adhesives, sealants, foams and finishes, along with pavement marking products, transparencies and paint films.
The Industrial Coatings reportable business segment is comprised of the automotive OEM coatings, industrial coatings, packaging coatings, and the specialty products operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings and finishes along with adhesives, sealants, metal pretreatment products, optical monomers and coatings, low-friction coatings, paint films and other specialty products.
Production facilities and sales for PPG’s reportable business segments are global and each segment continues to pursue opportunities to further develop their global reach. Each of the reportable business segments in which PPG is engaged is highly competitive. The diversification of product lines and the worldwide sales tend to minimize the impact on PPG’s business of changes in demand in a particular industry or in a particular geographic area.
PPG’s chief operating decision maker is its Executive Committee, which is comprised of the Chief Executive Officer, the Chief Financial Officer and General Counsel. The Executive Committee regularly reviews the discrete financial information of the Global Architectural Coatings, Performance Coatings and Industrial Coatings reportable business segments to assess performance and make decisions about the allocation of resources. The primary measure of profit or loss considered by the Executive Committee when evaluating reportable business segment performance is segment income, which is income before interest expense, interest income, income taxes and noncontrolling interests and excludes certain charges which are considered to be unusual or non-recurring. The Company also evaluates performance of operating segments based on working capital management and selling price and sales volume performance.
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (see Note 1, “Summary of Significant Accounting Policies”). Corporate unallocated costs include the costs of corporate staff functions not directly associated with the operating segments, certain legal matters, net of related insurance recoveries, the cost of certain insurance and stock-based compensation programs and certain other unusual or non-recurring items. The service cost component of net periodic benefit cost related to current employees of each reportable business segment is allocated to that reportable business segment and the remaining portion of net periodic pension expense is included in Corporate unallocated costs.
Product movement between PPG’s reportable business segments is limited, is accounted for as an inventory transfer, and is recorded at cost plus a mark-up, the impact of which is not significant to the net sales or segment income of the reportable business segments.
($ in millions)202420232022
Global Architectural Coatings
Net sales to external customers$3,921 $4,021 $3,852 
Cost of sales, exclusive of depreciation and amortization1,904 2,022 2,096 
Selling, general and administrative1,186 1,170 1,058 
Depreciation and amortization104 101 102 
Other(1)
49 55 38 
Global Architectural Coatings segment income$678 $673$558
Performance Coatings
Net sales to external customers$5,237 $5,132 $4,792 
Cost of sales, exclusive of depreciation and amortization2,851 2,893 2,813 
Selling, general and administrative1,017 966 879 
Depreciation and amortization132 139 142 
Other(1)
95 115 111 
Performance Coatings segment income$1,142 $1,019$847
Industrial Coatings
Net sales to external customers$6,687 $7,089 $6,970 
Cost of sales, exclusive of depreciation and amortization4,498 4,759 5,062 
Selling, general and administrative838 870 786 
Depreciation and amortization206 213 207 
Other(1)
252 279 269 
Industrial Coatings segment income$893 $968$646
Total Net Sales$15,845 $16,242 $15,614 
Total Segment income$2,713 $2,660 $2,051 
Corporate / Non-Segment Items
Corporate / non-segment unallocated, exclusive of depreciation and amortization(291)(330)(219)
Corporate / non-segment depreciation and amortization(50)(61)(51)
Interest expense, net of interest income(64)(107)(113)
Business restructuring-related costs, net(2)
(377)(41)(72)
Portfolio optimization(3)
(59)(53)(10)
Legacy environmental remediation charges, net(4)
(24)(24)— 
Insurance recoveries(5)
4 16 — 
Impairment and other related charges, net(6)
— (160)(231)
Argentina currency devaluation losses(7)
— (20)— 
Pension settlement charge(8)
— (190)— 
Total Income from continuing operations before income taxes$1,852 $1,690 $1,355 
($ in millions)202420232022
Segment assets(9)
Global Architectural Coatings$5,887 $6,595 $6,149 
Performance Coatings5,601 5,586 5,612 
Industrial Coatings5,230 5,643 5,802 
Corporate / Non-Segment Items2,715 3,823 3,181 
Total$19,433 $21,647 $20,744 
Expenditures for property (including business acquisitions)
Global Architectural Coatings$160 $93 $86 
Performance Coatings166 217 136 
Industrial Coatings247 184 313 
Corporate / Non-Segment Items179 131 65 
Total$752 $625 $600 
Investment in equity affiliates
Global Architectural Coatings$20 $25 $22 
Performance Coatings26 23 20 
Industrial Coatings20 18 15 
Corporate / Non-Segment Items75 75 77 
Total $141 $141 $134 
Share of net earnings of equity affiliates
Global Architectural Coatings$3 $1 $3 
Performance Coatings5 6 4 
Industrial Coatings2 1 — 
Corporate / Non-Segment Items10 13 18 
Total$20 $21 $25 
($ in millions)202420232022
Geographic Information
Segment income   
United States and Canada$1,039 $1,033 $828 
EMEA617 679 505 
Asia Pacific476 430 332 
Latin America581 518 386 
Total$2,713 $2,660 $2,051 
Property, plant and equipment — net   
United States and Canada$1,502 $1,365 $1,200 
EMEA945 1,010 943 
Asia Pacific693 718 685 
Latin America324 357 306 
Total$3,464 $3,450 $3,134 
(1)Other segment items for each reportable business segment includes research and development, net and other segment (income)/expense, net.
(2)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, 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. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the Company's exit of its Argentina operations in connection with a restructuring program, which are included in Other (income)/charges, net in the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 recognition of the accumulated foreign currency translation losses.
(3)Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other (income)/charges, net on the consolidated statement of income, including the gain of $129 million on the sale of the Company's silicas products business in the fourth quarter 2024, and the losses on the sales of the Company's traffic solutions business in Argentina in the second quarter 2024, the Company's European and Australian Traffic Solutions businesses in the fourth quarter 2023 and the Company's legacy industrial Russian operations in the third quarter 2023. 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 consolidated statement of income. Portfolio optimization also includes an impairment charge of $146 million recognized during the fourth quarter 2024 when the Company's remaining operations in Russia were classified as held for sale, which is included in Impairment and other related charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 impairment charge.
(4)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 consolidated statement of income.
(5)In the fourth quarter 2024 and the fourth quarter 2023, the Company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. 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. These insurance recoveries are included in Other charges/(income), net on the consolidated statement of income.
(6)In the fourth quarter 2023, the Company recorded impairment and other related charges due to a non-cash 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 operations in Russia.
(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 on the consolidated statement of income.
(8)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.
(9)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.