Divestitures

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

U.S. and Canada Architectural Coatings Business

On December 2, 2024, PPG completed the sale of 100% of its architectural coatings business in the U.S. and Canada to American Industrial Partners (AIP), an industrials investor. PPG received $516 million in proceeds and recorded a loss on the sale of $285 million during the fourth quarter 2024. No tax benefit was recorded on the loss. The loss on the sale is recorded in “Income from discontinued operations, net of tax” in the consolidated statement of income. The proceeds from the sale are recorded in “Cash from/(used for) investing activities - discontinued operations” in the consolidated statement of cash flows.

The sale represents a strategic shift in PPG’s business portfolio that has a major effect on the Company’s operations and financial results. Accordingly, the Company’s consolidated results of operations and cash flows have been recast to present the results of the architectural coatings business in the U.S. and Canada as discontinued operations for all periods presented. The results of the U.S. and Canada architectural coatings business were previously included in the Performance Coatings segment.

The operating results of discontinued operations related to the U.S. and Canada architectural coatings business for the three years ended December 31, 2024, 2023, and 2022 were as follows:


($ in millions)	2024	2023	2022
Net sales	$1,878	$2,004	$2,038
Cost of sales, exclusive of depreciation and amortization	976	1,067	1,121
Selling, general, and administrative	787	821	805
Depreciation	28	31	31
Amortization	6	13	21
Research and development, net	9	9	14
Impairment and other-related charges, net	—	—	14
Other charges, net	1	5	6
Loss on sale of discontinued operations	285	—	—
(Loss)/income before income taxes	($214)	$58	$26
Income tax expense	14	11	5
(Loss)/income from discontinued operations, net of tax	($228)	$47	$21

The Company’s December 31, 2023 balance sheet has been recast to present the assets and liabilities of the U.S. and Canada architectural coatings business as held for sale. The major classes of assets and liabilities of the U.S. and Canada architectural coatings business included in the PPG consolidated balance sheet at December 31, 2023 were as follows:


($ in millions)			December 31, 2023
Cash and cash equivalents			$21
Receivables			272
Inventories			193
Other current assets			41
Total current assets held for sale (included in Other current assets on the consolidated balance sheet)			$527
Property, plant and equipment, net			$194
Goodwill			85
Identifiable intangible assets, net			163
Deferred income taxes			1
Investments			5
Operating lease right-of-use assets			261
Other assets			38
Total noncurrent assets held for sale (included in Other assets on the consolidated balance sheet)			$747
Accounts payable and accrued liabilities			$306
Restructuring reserves			3
Current portion of operating lease liabilities			66
Total current liabilities held for sale (included in Current liabilities - other on the consolidated balance sheet)			$375
Operating lease liabilities			$205
Deferred income taxes			8
Other liabilities			14
Total noncurrent liabilities held for sale (included in Other liabilities on the consolidated balance sheet)			$227

The following table presents the significant non-cash items and capital expenditures for the discontinued operations related to the U.S. and Canada architectural coatings business that are included in the Consolidated Statement of Cash Flows for the three years ended December 31, 2024, 2023, and 2022:


($ in millions)	2024	2023	2022
Depreciation and amortization	$34	$44	$52
Capital expenditures	10	33	32

In conjunction with the divestiture of U.S. and Canada architectural coatings business, PPG entered into a supply agreement with the divested business to sell certain products, which will be recognized as Net sales in the refinish coatings, industrial coatings and protective and marine coatings businesses going forward. Additionally, PPG has entered into transition services agreements to provide administrative services subsequent to the sale. The fees for services rendered under the transition services agreements are expected to offset the cost of providing those services.

Silicas Products Business

On November 25, 2024, PPG completed the sale of its silicas products business for $325 million in proceeds and recorded a pre-tax gain on the sale of $129 million in the fourth quarter 2024. The gain on the sale is recorded in “Other (income)/charges, net” in the consolidated statement of income. The Company determined that the divestiture did not meet the criteria of a discontinued operation as it did not represent a strategic shift for the Company, and therefore, its historical results are included in the Company's continuing operations within the Industrial Coatings reportable business segment.